Freight Forwarders Agents Rules

Government of Pakistan (Revenue Division) Federal Board of Revenue Islamabad, thel 1th July.2025. NOTIFICATION S.R.O.1222 (l)12025.- In exercise of the powers confered b.v section 219 Sales Tax Act, 1990, of the Customs Act, 1969 (lV of 1969), section 50 of thc section 40 of the Federal Excise Act, 2005 and seclion 237 of the Income Tax Ordinance. 2001 (XLIX of 2001), the Federal board of Revenue is pleased to direct that the lbllowing further amendments shall be made in the Customs Rules, 2 I 9. lr'ere 2001 . r'vhich. as required b1' sub-section (3A) of the said section previousll, published vide notification S.R.O. No.8l4(l)/2025 dated the 16'h of Mav. 2025. namelv:- In the albresaid Rules, after Chapter-XlVl, lbllowing new Chapter-XlVII shall be added. namely: - "Chapter XLVII FREIGHT FORWARDERS LICENSING RULES 1207. Delinitions In this chapter, unless there is anything repugnant in the sub-ject or context: - serues as a contract ol (a) "airways bill" means a document which carriage lbr goods shippcd b.v air, and is construed as a contract of carriage between thc shipper and the airlirrestNV committee (b) "dispute resolution committee (DRC)" means the established under rule 1261 for resolving disputes; (c)"e-commerce shipment" means goods/cargo handled through e- ct:rrnnrerce's channcl b1'3PL.4PL. and 5l)l- manner: (d)"freight forwarder" means a person or a company, as an agent, concluding a contract r.vith a customer on freight lbmarding services as logistic service provider relating to carriage. consolidation. deconsolidation. storagc. handling of thc goods.

packing or distribution of the goods. as r'vell as. ancillary and advisory services in connection therewith; (e) "freight forwarder association" an association collectively representing the entire freight forwarding sector viz land, air. rail, ol the aforesaid rneans of carriage. .., /o..un. or anl combination dulv registered rvith the Directoratc General of l'rade Organizations (DGI'O), Ministry of Commerce vide Trade organization Act- 2013. and Trade Organization rules, 2013, such as l'}][:lrA (Pakistan Internalional Freight Forwarders Association); (1) forwarding service" means sen'ices involving organizing "freight and coordinating the transportation of goods lionl onc location to anothcr. acting as an intermediarl betu'ecn the shipper / consignee and the carrier, as a logistics sen'ice provider (exercising due diligence), and the handling tasks like carriage, consolidation, deconsolidation, storage, handling of goods, as well as, ancillary and advisory seruices in connection therewith, including but not and limited to. Customs and llscal matters, and preparing submission of documents relaling to the goods (Customs manif-est)l (g) "form" means a Form in this chapter; (h)"house bill of lading" means a document issucd by thc Freight Fonrarder or a Non-Vessel Operating Common Carricr (NVOCC)' spccilic individual 1cl the sh ipper/consignec, rcpresenting a shipment within the larger cargo, each having its own set of terms and conditionsl a(i) "licence" means a Licence granted under this chapter to act as freight forvvarder; O "licensee" means a person or a legal entiqv to lvhom a licence is granted under this chapter to act as a Freight Forwarder; the a committee comprising of(k) "licensing authority" means Customs Collector of Customs HQ (Exporls-IOCO), Collector ol (Enlbrccmcnt). Karachi and Collector of Custon-rs JIAP' Karachi: (l) "master bill of lading" nleans a document issucd bv the carier (shipping line or airline) to the shipper or the fieight fbrw'arder' serving as a contract of carriage of goods, against the entire shipment, encompassing all individual consignments;

person shall operate as fieight lonvarder 1208. Application'- (l ) No unless licensed under these rules. to obtain licence as lieight fbrwarder (2) Any person who seeks shall make an application to the licensing authority on the lbrmat as set out in l'orm-A along with the following documents with treasury challan evidencing payment of five thousand rupees in favour of the Collector of Customs, on account of application processing fee, which shall be non- refundable. namell-:- 'Iax (a) National Numbcr (N'l'N): partnership deed (b) copy of CNIC (in case of proprietorship), registered with the registrar of firms, along with CNICs of all the paftners (in case of partnership), certificate of incorporation Form 29, Form A or 3A (in case of a single member company, limited liabilitl' parlncrship or a private limited, issued bv thc Sccurities and Exchange Commission of Pakistan), as the case mal bel (c)valid membership cerlificate issued by the lieight forwarder association in accordance with Trade Organization Act, 2013 (II of 2013) and the rules made thereunder; and (d)photograplis (4 x passport size) o1' proprietor in case of proprietorship. all partners in case of partnership and all directors in case of company.\y An applicant is eligible to 1209. Eligibility to file an Application - make an application with the liccnsing authority. subject to the lbllowing conditions il' hc:- (a) is a citizen of Pakistan, and/or the legal entity duly registered under the relevant laws of Pakistan: (b) is not belorv the age of 18 years at the time of filing of the application: (c) is having valid membership certificate issued by fieight forwarder associalion in accordance with the Trade Organizations Act, 201 3 (ll of20l3) and the rules made thereunder; and (d) demonstrates the existence ol- an insurance coverage (upon lvritten instruction by the shipper/carrier).

1210. Approval of License,- (l ) tJpon receipt ofapplication. the liccnsing f ullllment olthe lbllor'r"ing, narnell':- authoritl, ihall issue license sub.jcct to (a) the applicant fulfills the conditions fbr grant of licence under these rules; (b)deposits a sum of two hundred thousand Rupees as securitl' deposit foi operating in one customs station and five hundred thousand Rupecs as security deposit lbr operating in more than one customs staiion, in the shape of Det'ense Saving Certificates, pledged to the Colleclor of Customs; and (c) execute a bond for ensuring good conduct and to fbllorv customs rules and regulations. (Exports-IOCO) shall be (2) 'l'he Collector of Customs HQ responsible to receive applications lbr processing and maintain rccords ofthe lreight tbrw arders. 1211. Licence and its conditions.- (1) The Licensing Authority may' on these rules, grant a non- fulfilling all conditions under rule 1209 of be t'"v o 1'ears which shall transferable licence fbr a period, initially for renewable after every two years sub.iect to the follorving conditions. namell':- \\ v\\! (a) the licence shall not be translerablc or sub-let and no licensee shall the company, bring about a change in the composition of proprietorship or firm. as the case may be; (b) ihange of status of flrm fiom proprietorship to partnership to .ornpuni' shall be allo',ved on submission of partnership deed dulr' attcsicd b1' notary public on successful passing ol it.ttct'v'ieu or tcst bl the or both b1 the nerv proprietor or partner. to be conducted licensing authoriry or any oflicer authorized in this behalt-: an (c) retirement of partner shatl be allowed on submission of additional undertaking that the existing partner may take the responsibitity of all previous and future acts of the company and shall be responsible for payment of any outstanding govemment dues accrued on the companl bclbre and afler rctirement of the panner: (d) iissolution of partnership shall be allou'ed on submission of dissolution deed and an under taking that the person continuing the firm shalt be responsible fbr the payment of all or an.v outstanding govemment dues accrued in thc name and title ol'the tlrm: (c) Ihange olstatus of firm 1ionl proprietorship / panncrship to limited .un,1ion, or changes oldircctorship in case o1'a conlpan)' shall onlv b.v the Securities and Iixchange be allowed if duty approved

Commission ol Pakistan: (1) in case of death of an individual licensee, the licence may be rc- issuecl to his legal heir if he lulfllls the requisite criteria under the taw. The new licensee shall execute a fresh bond for the purposel the however. the licensing Authority may allow the transl'er of security deposit held in the name of the dcceased licensee to the name o1' new licensee subject to adjustnrent of the liabilities attached to such deposit; Provided that sub.iect to such additional conditions as the licensing authorify- may impose, the licence may be renewed for a period of the last ten years and no five years, ii it has remained valid for criminal proceedings have been initiated or pending against the licensee; (e) in case the licence is lost or damaged, a duplicate copy thereof ma)' be issued on a written request by the licensee, duly supported by damage and on the documentary cvidence regarding loss or payment of'lee of'five thousand rupees 1212. Renewal of Licence - (1) An application as set out in Fornr- B for the renewal of licence shall be made to the licensing authoriry nvo months before its expiry. along with the following documents: - transactions in capacity of a frcight\ (a) proof of undcrtaking t- lorwarder; and renewal I'ee. which shall be rupees ten (b) proof of payment of the thousand for renewal of licence for a period of five years if it (2) Thc licensing authority mav refuse to rene\\'' the licence llnds that - (a) the licensee has failed to apply for the renewal of licence within the prescribed time; (b) the licensee has become insolvent or bankrupt or is involved in cases o1'tax liaud or criminal cascs. established through conviction under an1' larv for the time being in lbrce; (c) the licensee is declared to be of unsound mind by a competent court or medical authoritY; (d) thc Iicensee had viotated any applicable lar'v including the provisions of thc Cusloms Act. 1969 and the rulcs made thcreunder: and

under these rules; (e) the licensee has been revoked 1213. Authorization to sign and submit documents on behalf of the Licensee.- A licensee may authorize not more than threc permit holders, per Customs Station to sign customs documents on his behalf' Licensee shall apply to the 1214. Issuance of Permits - (1). The licensing authoritl' as set out in Form-C lilr the grant of Custonrs pernlit 1o such clcrks as he/she cmplol,s lbr transacting busincss at the custonls Station such as Custom House, Seaport. Airport. I{ail Station or Land Customs Station. stamp of rupees fift,v. (2) Such application shall bear a court-fee accompanied by three passport size phobgraphs of the persons whose permits are applied for. has been sought. musl at (3) The person lbr whom the permit and shall be valid\l least have(4)passedA customsinter examinationpermit shall andnot holdsbe transl-erablea valid CNIC. only 1br the person in I'avor of rvhom it rvas issuecl. \) pa)'ment ol'rupecs one (5) A custonts permit shall bc issued on thousand and shall be valid lbr two ycars. unlcss suspendcd or earlier revoked in accordance with these rules. '[he licensee shall apptl' fbr the renewal of the customs permit (6) issued in f-avor of his clerk at least one month prior to its expiry. duly accompanied r.vith a rcnewal fee o['rupees five hundrcd. authority (7) The licensee shall immediately intbrm the licensing in case the senrice of any permit holder is terminated, where after, the licensee shall surrender the permit with the licensing authorit.v fbr cancellation. revoked or suspcncled (8) A customs permit shall be liable to be at an)' time by the Licensing Authoriry" tor any irrcgularitl, misbehavior or 1br any other reason lbr which a licence may be revoked or suspended. be carried by the person to (9) The customs permit shall always u,hom it has been issued and shall be produced befbre the relcvant ofllcer of customs. on demand.

, acts ofany person (10) The licensee shall be responsible for allthe holding a Customs permit on his behalf. shall: 1215. Responsibilities of Licensee.- (l) A Licensee the cargo owner and the (a) act as an intermediary between carrier; take reasonable measures ln (b) cxercise duc diligence and the pertbrmance of lieight ibrwarding services; goods, maintaining (c) affange inland transportation of exporter/transpoft efl'ective communication with the companies so as to ensure that the goods are timell' delivered to the PorVairPort; transportation in a situation where (d) rnanage multimodal the gJods are required to be delivered to the destination through sea. land andlor air route, simultaneously; o1- the (e) negotiation of freight rates on behalf exporter/importer lv ith the carriers: N ncoessary to optimize (1) cor-rsolidaling shipments when costs and efficiencY; \ and warehousing facility for the goods (g) arranging storage u'hen required by the exporter/imporler; V as and documents related to all shipment (h) prepare and process bill of activities, iniluding issuing their own house lading/airwaY bill; manifest as co-loaderl (i) upload cargo issuance of Delivery Orders and managing FCL' LCL' 0) Air, Sea Land and Rail ShiPments: (k) manage/untlertake e-commerce logistics through 3PI- ('l'hirJ Party I-ogistics). 4PL (fburth Party Logistics) and 5PL (Fifth Party t-ogistics) manner/serviccs; and the (l) responsible to carry out his scrvicc according to exporter's instructions. as agreed. and as per the correct iniormation provided bv the consignor or consignee'

1216. Dispute Resolution Mechanism.- ( I ) For the purpose ol'anv dispute requiring rcsolution. thcre shall be a dispulc resolutiotl committcc (DRC) ro be constituted b) the Pakistan International Freight Fonr arders Association (PIITFA). (2) The DRC under sub-rule (l ) shall comprise such representatives as the PIFFA may determine. (3) Upon receiving a rT,ritten complaint rvith supporling clocumentation, thc DRC shall issue noticcs to the conccmed parties r'vithin seven days, requiring their replies within ten days. (4) A hearing shall be scheduled within five days after receipt of all replies. (5 Thc DRC shall resolve thc dispute amicably' and issue ) decision within fltleen days of the hearing. (6) A report regarding settlement of disputes through DRC shall be submitted to the Collector of Customs HQ @xports-IOCO). (7) If the dispute is not resolved by the DRC within thirtv da1"s from the date of the complaint, the matter shall be brought in appeal befbre the Customs Dispute Resolution Committee (CDRC) consisting ol the\ following, namely: Chairman ( a) Collector Export (HQs) - ( b) Additional Collector of Customs (Enlorcement) Member: ( c) Chairman/Member PIFFA-South Zone Member; and ( d) Chairman/Member of PIFFA-Nofih Zonc - Mcmber (8) The CDRC shall convenc its meeting at Customs llouse. Karachi fbr hearing the parties including online hearings where necessary w ith recorded justilication. (9) In respect ofthe notices, hearings, proceedings and decisions. the CDRC shall fbllou,the same timelines as are applicable to the DRC. (10) The appeal by the CDRC constituted under sub-rule (8) shall be decided through a speaking order. ( I 1) Whcre an1'part) is aggricvcd bl decision in appcal undcr sub-

rule ( l0), it may opt to challenge the decision bclore the competent court of law in accordance with the applicable laws. (12) Any freight fbrwarder or licensee. aggrieved by any decision aor order of thc licensing authority denying. revoking or suspending licence under this chapter, may prel'er an appeal as set out in lbrm-D along with a copy of thc impugned order and grounds o1'appeal. r'vith the Chief Collector of Customs (Exports-IOCO) within sixty days of the passing ol' such decision or order. case ofa violation ofthe conditions ofLicence - 1217, Action in (1). l-he licensing authority may revoke or suspend a licence or permit of any' lieight lbrrvarder lbr the follorving reasons:- (a) the licensee has made or cause to be made, in any application lbr any license or permit under this chapter, or report iiled with in light the customs. any statement which was, at the time and was made' f'alse or of the circumstances under which it misleading s'ith respect to an,v material lact or has omitted to state in any such application or report; the11' (b) the ticensee has been convicted at any time ibr larceny, robbery, extortion, forgery, counterf'eiting, fiaud' embezzlement, fraudulent conversion, or "on."ul*"n1, misappropriation of fu nds; (c) the 1i&nsee has knowingl.v employed or continues to employ any individual u'ho has been convicted ofany ol'fence referred to under clause (b); forrvarding (d) the licensee has. in the course of its fieight business. with thc intent to defiaud, in an,v manner, will{ull-v and knor,vingly dcceived, mislead or threatened any client or prospective clienl; (c) violotion by the lioensee of any provisions of the rules' orders passed regulations. notifications, instructions or thereunder; (0 aiding or abetting any individual, firm or company' as the case ma1,be, fbr violation olany provision of these rules; - ol (-e) n"glig"n." and ineffrciency ofthe licensee in the discharge his,/her obligations; an1 (h) attempl by the licensee to inlluence the conduct of employee on the customs house. customs station, port or airport by the use ol fbrce, intimidation. duress, bribery or by olltring an1' special inducement or gi11; and (i) the lice'nscc's prcvitlus perlbrmancc has not becn satisl'actory or has t.tot bce n truc to the customs.

licence under Sub-Rule (1)' the (2) In case of revocation of Licensing Authority after issuing show cause nolice to the licensee. tbrl'eit the rvhole or parl of the securitl' deposited b1' the licensee under rule 1210 fr>r the settlement o1'anl outstanding ducs. Whercas. in case ilthe securitl deposit is not lbrf-eited, it shall be rctumed to the concerncd person r'r'ithin six months fiom the date of revocation or surrender of licence. action (3) The licensing authority may, in case where immediate is considered necessary against the licensec. suspend his licence lilrthu'ith altcr rccording rcasons in u,riting pcnding thc flnal action under thc rulcs. (4) The licence shall stand revoked immediatelf if the licensee: (a) is declared insolvent or convicted by a court of law; (b) fails to apply for renewal of licence after three years lrom the last renewal: (c) liles an application seeking canccllation of liccnce: (d) lails to renew' membership with PIFFA; and (e) cancellation/Suspension of PIFFA membership by its executive committee. \ 1218. Training and Capacity Iluilding. - Frcight liorrrarding agents shall be rcquired to underlake mandatory annual training program from the Customs Academy of Pakistan. Pakistan Customs Academl' shall carry out the training in coordination rvith the Pakistan Inlemational Freight Forwarders Training Institute. Failure to attend the mandatory training without sulficient cause ma)r lead kr suspension o1'license. 12I9. Transitional Provision - Existing freight lbnvarders operating at the time of commencement of thcse rules shall appll lbr licensing under these rules within six months of this notification. 1220. Penalty for Non-compliance - Any licensee tailing to comply'with these rules shall be liahle to penaltics as prcscribcd under the Customs Act, 1969 and may lace suspcnsion or revocation ol liccnce as well as WeBOC ID. 1221. Multimodal Licensing Rules - l'hese rules shall also be applicable to the multimodal fieight foruarding sector.

Form-A [see rulc 1208] Application for Grant of Freight Forwarder Licence To" .The I-icensing Authoritl Subject Application for Crant of Freisht Forwarder Licence Sir / Madam. I, the undersigned, hereby apply for the grant ofa Freight Forwarder Licence under the Freight Forwarders (Multimodal) l,icensing Rules' I submit the fbttowing particulars fbr your kind consideration: 1 . Name of Applicant (IndividuaUCompany/Firm): 2. Nature of Legal EntitY: (Proprietorship / I'}artnership / Company) 3. Registration Details: NTN Number: S'f ItN (if applicable): CNtC No. (lor indiv iduals/parlners) 4. Busincss Add ress: 5 Phone No.: Email: 6 Proof of Valid MembershiP: (Membership Certificate of Freight Forwarder Association. e g'. PIFFA) Attached: [YcsAio] (for individuals/pa rtners/directors): 7 Educational Quatification 8 Experience in Freight Forwarding (ifany): 9. Treasurt Challan No. and Date: I)efosited Its. vide Challan No. . dated l0.Security Deposit (upon approval): [ ] Its. 200,000 tbr one Customs Station I I i{s. 500,000 for countryu'ide operation I l.Insurance Coverage Evidence: Attached: IYes,No]

12.Other Attachments: Documcnts (Form 29, Form . Copy of CNIC / Parrnership Deed / SECP A/3A) . Four (4) Passport Size Photographs Declaration: I hereby declare that the infbrmation provided above is true and correct to the best of my knowledge and belief, and that I shalt abide by the Customs Act, 1969, and all rules and regulations made thereunder. Date: Place: Signature o1'Applicant: Name: Designation: Form- li [sec rLrlc 12121 \{ Application for Renewal of Freight Forwarder Licence To. 1'he Licensing Authoritl Sub.iect : Apnlication for Renewal of Freisht Forwarder Licence Sir. m.v-' Freight Foru'arder I. the undersigned. hereby appl.v tbr the renewal of I-icence bcaring [.iccnce No. issued on and expiring on I submit the fol lowing documents/intbrmation: 1 Proof of Freight Forwarding Activities: (Attach supporting documents such as contracts. bills of lading. delivcry orders.) 2. Proof of Payment: Rs. 10.000 Treasury Challan No dated _. lbr (Renewal Fee). l)

3. Proof of Continuing Membership with Freight Forwarder Association (e.g.' PIFFA): Attached: IYes/No] 4. Any Changes in Legal Status: I f Yes. details (Attach SECI'} approval and other documents if applicable ) 5. Declaration: I hereby declare that there is no pending criminal or insolvency case of againsime/us and that all information provided is correct to the best my knowledge. Date: _ Place: Signature of ApPlicant: Name: ...... -........ Designation: -- Form-C [see rule 1214( I )] Application for Issuance of Customs Permit for Clerk/Employee To, The Licensing AuthoriryNN\ \,1 Sub.ject: Aprrlication for Issuance of customs Pernrit for clerk/Emolovee Sir. I. the undersigned, on behalf of N{/s (Name of Licensee/Freight F-orwarder)" Licence No hereby apply lbr the issuance of a Customs Permit for the fbllowing cle rk/employee engagecl by us lbr transacling business at Customs House / Port / Airport / Station: I . Name of the EmPIoYee: 2. Father's Name: 3. CNIC Number: 4. Date of Birth: 5. Educational Qualification: (Minimum: tIighcr Secondary School Certificate)

6. ResidentialAddress: 7. Designation in the ComPanY: 8. Nature of Duties to be Performed: 9. Passport Size Photographs Attached: [ ] Yes (Three Photographs Enclosed) - l0.Court Fee Stamp (Rs.50) Affixed: []Yes 1 I .Declaration: I herebl' declarc that the above-named emplo",-ec is of good character and integritl,, possesses the requisite qualilication, ancl is bcing nominated b1 us to transact business at Customs Flouse/Porr/Airport/Rail Station. I undertake full responsibility fbr the acts and conduct of the employee concemed. Date: (.. Place: Signature of Licensee/Authorized Signatory: Name: Designation: Official Seal: Fo rm-D fsce rulc l2l9l Form of Appeal To, The Chief Collector of Customs (Exports & IOCO), Customs House. Karachi. Sub.ject: Appeal Aeainst Order of Licensins Authoritv Sir. I. the undersigned. hereb.v pref'er an appeal under Section [Insert Section] o1'the F reight Forw'arders (Multimodal) Licensing Rules against the decision/order dated passed by the Licensing Authoritl' 'l'he particulars olthe appeal are as fbllows: l. Name of Appellant (Licensee/Applicant): 2. Licence/Permit Number (if any): L4

3. Date of Impugned Order: 4. Grounds of ApPeal: (Attach a separate sheet if necessary.) 5. Relief Sought: 6. Attachments: . Copy of the impugned order . Supporting documents 7. Declaration: I declare that the facts stated above are true to the best of my knowledge and belief. Date : Place: Signaturc of Appellant: N anrc Designation 1 ( 7)il&1']/2025l[C. No. (Ch. Rizwan B hir ir) Secretary' (Lar.r' & Procedure)