The Federal Board of Revenue (FBR) has issued draft customs rules for the introduction of a separate chapter on procedures for activities related to the China-Pakistan Economic Corridor (CPEC). In this regard the FBR issued SRO 47(I)/2021 to make amendment to the Customs Rules, 2001. Gwadar Tax Free Zone Rules have been introduced as a sub-chapter . According to these rules, an investor is required registration to operate under customs computerized system. The FBR said that goods imported into a free zone shall be examined and assessed in accordance with the provisions of the Customs Act, 1969 and rules made thereunder. The exemption granted under the act and ordinance shall be applicable to plant, machinery, equipment, apparatus and materials to be used solely within the limits of a free zone and to goods imported into the zone by the investors. The FBR further said that entry of goods imported for free zone shall not be refused except when the goods are liable to restrictions or prohibitions imposed on grounds of public morality or order, public security, hygiene or health or for sanitary or phyto-sanitary considerations, or relating to the protection of parents, trademarks, or intellectual property rights as envisaged in import policy order. Hazardous goods may be allowed to be admitted to a free zone only when a safe area specially designed for its storage has been made available within the free zone to the satisfaction of the licensing authority and customs as well as such conditions under relevant national laws have been complied with. The FBR said that duty and tax free vehicles shall be allowed to be imported by the concession holder and its operating company for construction, development and operating of Gwadar Port and free zone area under the regulatory mechanism. The regulatory mechanism for such vehicles, including the number and types importable, shall be devised by the ministry of Port and Shipping and FBR, in consultation with the provincial government if so required, and shall be notified by the FBR. The FBR further said that goods, excluding petty items, from the tariff area shall be admitted into the zone upon completion of export formalities which are observed for export to foreign countries.