ISLAMABAD: The Federal Board of Revenue (FBR) has imposed a restriction on industrial units located in the tribal areas (erstwhile Fata/Pata) to transport concessionary goods only through bonded carriers, having tracking equipment, for monitoring of goods movement from import stage to designated tribal area units.
The FBR Monday issued a customs general order (CGO)-08/2025 for ensuring safe and secure transportation of plant, machinery, equipment and industrial inputs destined for the industrial units located in the tribal areas (erstwhile Fata/Pata) which are availing the concessionary rates of sales tax under entry 89 of Eighth schedule to the Sales Tax Act 1990.
The CGO is a continuation of the earlier procedure notified vide CGO-01 of 2021. The Federal Government initially extended sales tax and income tax concessions to industrial units in the erstwhile Fata/Pata through SROs 1212 and 1213 of 2018, later incorporated vide Finance Act 2019 under serial 151 of the Sixth Schedule of the Sales Tax Act and Section 159 of the Income Tax Ordinance. From 2018 to March 2021, the erstwhile Fata/Pata units imported plant, machinery, equipment, and industrial inputs through Karachi port.
However, following objections from business rivals of settled areas, the Federal Board of Revenue regulated these imports through CGO-01/2021, requiring mandatory clearance from Azakhel Dry Port under a bonded carrier regime under Tracking and Monitoring of Cargo Rules.
Finance Act 2025 partially withdrew the earlier exemption and a phased 10% sales tax was introduced, while the requirement of clearance through Azakhel Dry Port under CGO-01/2021 remained intact. Several units of erstwhile Fata/Pata challenged this procedure before the Peshawar High Court, which initially allowed interim clearance through Karachi port without bonded carriers or tracking mechanism. Subsequently, the Court ruled that a fresh procedure could be notified by the FBR.
The Board has now notified the new procedure vide CGO-08/2025, reviving the regulatory framework to ensure secure, tracked movement of concessionary imports to the designated tribal area units under Tracking and Monitoring of Cargo Rules, 2023, with clearance required through Azakhel Dry Port and addressing concerns raised by competing industries in settled regions.
According to the CGO, under entry 89 of the 8th Schedule to the Sales Tax Act, 1990, concessional rates of Sales Tax are allowed on import of plant, machinery, equipment and industrial inputs for imports by industries located in the tribal areas, as defined in the Constitution.
In order to ensure safe and secure transportation of these goods imported at concessional rates of sales tax specifically allowed for the said tribal areas, following procedure is prescribed with immediate effect:-
On importation of goods under the aforementioned concessions,Transshipment Goods Declaration (TP-GD) shall be filed at the port of entry for clearance at Azakhel Dry port, for containerized cargoes. Safe Transportation (ST) type of GD (ST-GD) shall be filed for the said goods imported in bulk, for onward transport to the bonded warehouses.
The transport of goods shall be through bonded carriers only and their movement from the port of entry to the port of discharge, and to the respective industries after clearance from Azakhel Dry Port, shall be monitored in terms of Tracking and Monitoring of Cargo Rules, 2023.
Provided that where facility of tracking equipment is presently not available, these Transshipment consignments shall be escorted by Customs to their place of discharge at Azakhel dry port, the FBR added.
