ISLAMABAD: The Federal Board of Revenue (FBR) has revised its criteria for granting licenses for tracking and monitoring of vehicles and containers carrying transit or imported cargo. As per the newly issued SRO996(I)/2023, the FBR has introduced the Tracking and Monitoring of Cargo Rules, 2023.
Under the updated regulations, companies with an annual turnover of at least Rs175 million or a financial worth of Rs100 million are now eligible to apply for these licenses. This is a significant reduction from the previous requirements of Rs350 million annual turnover and Rs200 million financial worth.
Customs officials announced that a bidding process is scheduled for September 2023, and the lowered financial benchmarks aim to make the licensing process accessible to new companies as well.
In a bid to encourage smaller companies to participate in the licensing process, a simplified procedure has been introduced. This move is intended to break the monopoly held by a single company, as smaller entities will now be able to enter the bidding fray for obtaining licenses.
The new rules apply to the tracking and monitoring of various cargo types throughout their journey, whether from the port of entry to exit or between warehouses, all in real-time. Applicants seeking licenses must provide technological solutions based on GSM, GPRS, satellite communication, or other modem technologies for real-time monitoring and tracking of containers and vehicles transporting the cargo.
Applicants are required to possess specific qualifications to be considered for license issuance. Their proposed system-based solution should have the capability to monitor a minimum of 3,000 containers or trucks in real-time from their control room. This solution must also provide continuous monitoring and tracking of vehicles and containers from Customs entry points to exit points.
The rules strictly state that no company can undertake tracking and monitoring of cargo without obtaining a valid license under these regulations.
License holders are mandated to establish and maintain a performance monitoring section for the licensed tracking companies in the central monitoring and control room (CMCR) situated in the old Customs House in Karachi, or any other control room designated by the Board.
