Islamabad: In a significant move to regulate the freight forwarding industry, the Federal Board of Revenue (FBR) has introduced the Freight Forwarders Licensing Rules, 2025 under S.R.O. 814 (I)/2025. The new rules, which amend the Customs Rules, 2001, aim to streamline operations, enhance accountability, and ensure compliance with international standards in the logistics sector.
Key Highlights of the New Rules
1. Mandatory Licensing for Freight Forwarders
Under the new regulations, no individual or company can operate as a freight forwarder without obtaining a license from the designated Licensing Authority, which comprises the Collectors of Customs from key regions, including Karachi. Applicants must submit detailed documentation, including proof of registration (NTN/STRN), valid membership with a recognized freight forwarder association (e.g., PIFFA), and evidence of insurance coverage. A non-refundable application fee of PKR 5,000 is required.
2. Security Deposit Requirements
Licensees must deposit a security amount of:
– PKR 200,000 for operations at one customs station.
– PKR 500,000 for nationwide operations.
The deposit, held in Defense Saving Certificates, will be forfeited in case of violations.
3. License Validity and Renewal
Licenses are initially valid for two years and can be renewed for up to five years for compliant operators. Renewal requires proof of active freight forwarding transactions and a fee of PKR 10,000. Licenses may be revoked for insolvency, fraud, or non-compliance with customs laws.
4. Employee Permits and Responsibilities
Freight forwarders must apply for customs permits for employees (limited to three per licensee), who must hold at least an intermediate qualification. Permit holders are personally accountable for customs transactions, and their actions bind the licensee.
5. Dispute Resolution Mechanism
A two-tier system is established:
– Dispute Resolution Committee (DRC): Formed by PIFFA to resolve disputes within 30 days.
– Customs Dispute Resolution Committee (CDRC): Headed by senior customs officials for unresolved cases.
Decisions can be appealed in court.
6. Penalties and Compliance
Violations may result in license suspension, revocation, or penalties under the Customs Act, 1969. Non-compliance includes:
– False documentation.
– Criminal convictions (e.g., fraud, embezzlement).
– Failure to renew licenses or permits.
7. Transitional Provisions
Existing freight forwarders must apply for licenses within six months of the notification’s publication.
Industry Impact
The rules are expected to professionalize Pakistan’s logistics sector by weeding out unregistered operators and ensuring adherence to best practices. However, smaller players may face challenges due to the stringent financial and documentation requirements.
Zubair Shah, Secretary (T&BT), FBR, stated: “These rules align Pakistan’s freight forwarding sector with global standards, ensuring transparency and efficiency in cross-border trade.”