In a bid to stop smuggling between Afghanistan and Pakistan, the Federal Board of Revenue (FBR) has put the condition of a bank guarantee on goods moving out of the country.

The measure has been taken to curb smuggling under the guise of Afghan transit trade and to regulate border trade.

All importers, customs agents, brokers, and transport operators shall be bound to submit equivalent guarantees for taxes and duties.

At least 25% of the goods will also be scanned through a computerized system.

The new measures are aimed at preventing the smuggling of billions of dollars worth of goods under the guise of Afghan transit trade.

In the fiscal year 2023, Afghanistan imported goods worth $7.3 billion through Pakistan under the transit trade facility, which is $2.3 billion more than last year.

Most of the goods coming under transit trade were sold back to the Pakistani market through smuggling.

The FBR has issued two notifications regarding amendments to Customs Rules 2001.

The new conditions will apply to all importers, relevant customs agents, brokers, and transport operators importing goods to Afghanistan.

A condition of financial security including taxes and duties has been imposed on goods coming to Afghanistan. The financial security will be in the form of a bank guarantee for one year and can be cashed in Pakistan.

According to the notification, the bank guarantee will also include taxes and duties levied on vehicles and goods.

The merchandise coming to Afghanistan will be monitored through the customs computerized system.

At least 25% of goods shall be scanned after declaration of goods. The risk management system shall inspect at least 10% of the consignment.

Pakistan has also imposed a 10% additional processing fee and a ban on trade in several commodities to Afghanistan.