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The Federal Board of Revenue has issued new rules for ensuring secure, tracked, and regulated movement of imported machinery and industrial inputs to tribal-area industrial units. The notification, reportedly part of efforts to prevent misuse of tax concessions, reinforces clearance through Azakhel Dry Port and outlines strict monitoring requirements.
FBR’s Updated Procedure
The FBR has released Customs General Order CGO-08/2025, introducing a detailed mechanism to control and document the transportation of plant, machinery, and industrial inputs meant for industries operating in erstwhile FATA and PATA. These units enjoy concessionary sales tax benefits under Entry 89 of the Eighth Schedule of the Sales Tax Act 1990.
According to the order, all consignments must pass through Azakhel Dry Port, where tracking devices and monitoring protocols will be applied to ensure secure movement until the goods reach the designated manufacturing units.
Background to the New Regulations
Between 2018 and 2021, tribal area industries imported their inputs through Karachi Port under SROs 1212 and 1213, later merged into the Finance Act 2019. However, concerns were raised by businesses in settled areas about possible misuse of tax concessions and the diversion of goods.
In response, the FBR shifted all clearances to Azakhel Dry Port, enforcing a bonded carrier system. The 2025 Finance Act later imposed a phased 10 percent tax while keeping the clearance requirement in place. Some units challenged the rule in the Peshawar High Court, which briefly allowed clearance from Karachi. The court eventually permitted FBR to issue a revised mechanism, resulting in CGO-08/2025.
Key Features of the New Order
The fresh circular restores the earlier regulatory framework with tighter monitoring under the Tracking and Monitoring of Cargo Rules 2023. Officials say the move ensures a level playing field for manufacturers in settled regions.
An FBR representative said,
“The updated procedure strengthens transparency and prevents diversion, while ensuring that genuine tribal area industries continue to benefit from legal concessions.”
