The Federal Board of Revenue (FBR) has re-imposed a stringent tracking and monitoring system for concessionary imports destined for industrial units in the tribal regions, effectively ending a temporary relief period granted by the courts and renewing measures to curb the potential misuse of tax benefits.
Through the newly issued Customs General Order (CGO) 08/2025, the tax authority has mandated that all such consignments, including plant, machinery, equipment, and industrial inputs, must be cleared exclusively through the Azakhel Dry Port.
This directive revives and updates a regulatory mechanism first introduced in 2021. The updated framework makes transportation under the Tracking and Monitoring of Cargo Rules, 2023, a mandatory requirement for all goods moving to the industrial units in the erstwhile FATA and PATA regions, which avail concessionary sales tax under existing law.
The FBR’s action follows a legal challenge in the Peshawar High Court by several tribal-area industrial units. The court had initially granted the businesses interim relief, allowing them to clear their shipments through Karachi Port without the need for bonded carriers or tracking systems.
However, the court later directed that the FBR was within its rights to issue a revised or fresh procedure, paving the way for the new CGO.
The issue stems from tax concessions originally granted in 2018 to stimulate industrial growth in the tribal areas. These were later incorporated into law via the Finance Act 2019. The initial regulatory mechanism was established in 2021 after competing businesses in settled areas raised objections, citing potential market distortions from the untracked movement of tax-exempt goods.
The re-established regulations aim to create a secure, technology-backed framework ensuring the complete and tracked movement of all concessionary items. This measure is intended to prevent misuse of the tax regime and address the concerns raised by industries operating in other parts of the country.