FBR Simplifies Tax-Free Import Rules for Chinese Goods in Gilgit-Baltistan
In an effort that could boost trade activities and development within the region of Gilgit-Baltistan (GB), the Federal Board of Revenue (FBR) has now developed an organized procedure that allows tax-exempt imports from China that pass through the Sost Dry Port. In this new deal, Chinese products, which are qualified to be imported for use in Gilgit-Baltistan, will be exempt from Sales Tax, Income Tax, and Fed Ex Duties.
As per the latest notification issued by FBR, over 2,400 Chinese commodities with particular PCT codes are eligible for this concession and will be in effect from now onwards through 2025, in line with the government’s overall objective to encourage regional trade productively utilizing CPEC-related routes as well.
How the Tax Free Process Works
For enjoying this exemption, Web based approval, on a consignment basis, is mandatory with the Customs Computerized Clearance System (WeBOC). These approvals must be given by an authorized representative of the Government of Gilgit-Baltistan. Without this digital authorization, the exemption will not apply.
The tax relief will be granted on a first-come, first-served basis within a fixed quota. Any import after the allowed quantity will attract normal taxes and duties by default.
Strict Monitoring to Prevent Misuse
FBR has further introduced provisions to make sure that the tax-free goods are not used beyond Gilgit-Baltistan. If it is exported outside Gilgit-Baltistan or misrepresented in case of export outside Gilgit-Baltistan, then Customs can withdraw the exemption and initiate legal proceedings under the Customs Act, 1969.
In situations like road blockages or protests that disrupt Customs operations, the exemption may be temporarily suspended after consultation with the GB government.
Why This Matters in 2025
This step brings more transparency, reduces confusion for importers, and supports economic activity in Gilgit-Baltistan while protecting federal revenue. For businesses, the message is clear: follow the procedure, stay within limits, and benefit from tax relief legally and smoothly