Category Archives: Special Economic Zone

A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country.

Specialized Shipping Guaranteed Empower time solutions of goods

Any shipment that is too big, heavy, or cumbersome to be shipped by standard methods requires specific shipping services. From the extraction of oil and gas to the building and manufacturing industries, specialised transport is essential. Freight for these sectors must be handled uniquely because standard shipping companies do not offer the necessary services, such as climate-controlled trailers, hazardous permits, or escort services for big cargo.


Specialized cargo needs additional authorizations in addition to the standard ones required for transport of any package. Shipping specialised cargo may seem daunting because of the complexity of logistics and transportation systems. Thanks to the CPECB’s dependable bridging services, businesses can more easily and effectively transport their high-value, bulky, and/or fragile cargo. Shipments of specialist goods via cargo ship necessitate the use of a CPECB hub.


How do you move unusual cargo?


Specific materials have unique shipping needs, necessitating specialised modes of transport and vehicles. The type of cargo being shipped will determine the mode of conveyance selected. When transporting big cargo, an escort service may be required. The size, mass, and nature of the goods in question determine the optimal mode of conveyance.


Transport Vehicles That Don’t Get Wet


Dry vans are frequently used for the transportation of dangerous goods. From common household goods like nail polish and perfume to lethal chemicals and explosives, there are nine distinct categories of hazardous materials. Carriers transporting hazardous materials must take many safety courses and receive special permissions to show they understand the dangers their cargo faces during transit.

Specialized shipments include things like electronics, robots, and fragile fixtures that can’t be transported in a standard dry van. Therefore, additional packaging and care during the storage phase will be required for customised shipments. Dry van trailers are used by businesses for transporting valuable cargo because they provide the best protection from bad weather, accidents, and theft.


Transport Refrigerators


When you hear “refrigerated trucks,” your mind likely goes straight to the food distribution business. However, delivering perishable goods like vaccinations and medications requires the use of refrigerated trucks. Trucks with temperature-controlled trailers, also called reefers, are used to transport perishable goods. If you need to ship something that needs to be kept at a specific temperature, you might expect to spend more because of the cost of the fuel used to do so.


Trailers with Various Deck Heights


Oversized loads encompass a wide variety of large and heavy items, including industrial machinery, steel and mining materials, construction equipment, and more. Products that are wider than 8 feet (6.01 metres), taller than 13 feet (4.11 metres), and longer than 48 to 53 feet are considered oversized loads. The most frequent types of trailers used to transport oversized cargo are flatbeds, lowboys, and step deck trailers because they allow for product overhang.


Flatbeds


There are many varieties of trailers used in the transport industry, but flatbeds are among the most frequent. The length ranges from 48 to 53 feet, while the width averages 8.5 feet. In contrast to enclosed vehicles like vans and trucks, flatbeds are open and hence more convenient for transporting cargo. With a capacity of up to 48,000 pounds, flatbeds are quite flexible. A tri-axle flatbed trailer can move up to 65,000 pounds of heavy haul freight.


Lowboys


When transporting items that are over six feet in height, lowboys are the ideal trailer. The lowboy is a frequent vehicle for transporting heavy construction equipment like excavators and bulldozers. A lowboy, often called a double drop trailer, has a ground clearance of just 18 inches, making it suitable for transporting tall equipment through narrow passageways such as tunnels and under low-lying bridges. When equipped with two axels, a lowboy can carry up to 40,000 pounds; however, extra axels can be added if necessary.


Balcony Stairs


Step-deck trailers combine the advantages of both lowboy and flatbed trailers. A step-deck has tiers that range in height from 3 to 5 feet, with the uppermost tier measuring 5 by 10 feet and the lowest tier measuring 3 by 43 feet. Because of this, step deck trailers are ideal for transporting a wide variety of goods in a single load. Forklifts, tractors, and other heavy machinery may be easily transported on step decks because of their 43,000-pound weight capability.


Pilot or Escort Vehicles


Safely transporting huge loads may necessitate the use of escort or pilot vehicles. Loads that are more than 90 to 100 feet long, or more than 12 feet broad or 14 and 12 feet high, typically require two escort cars. The enormous cargo is accompanied by these vehicles, which travel in front of and behind the load to alert drivers to potential hazards and help them avoid them.

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Finding the Right Carrier for Your Unique Shipments


Finding a professional logistics partner is one of the most challenging aspects of arranging proper shipments for specialised materials in a market with hundreds of companies and severe rivalry. Consider these qualities essential in a reliable specialised shipping service.


Focused Expertise


For logistics providers to fully grasp your company’s requirements and offer suitable solutions, they must have extensive experience in the supply chain and logistics industry. It’s best to work with a logistics partner who has seen it all before, as they’ll be better equipped to handle any problems that arise and offer advice on how to solve them. At CPECB, we’ve done the legwork to ensure that only the most reliable companies and bridging services providers have made the cut, so that you can focus on getting the job done.


The Carrier-Side Network


Maintaining available space for your loads is crucial to a streamlined shipping process, which is why having access to a wide range of carriers is so important. If you have a load, don’t worry about it. PLS will connect you with a network of reliable carriers.

Offerings in a Wide Range of Categories

There are many people, tools, and services needed to successfully transport specialty cargo. Verify that your prospective logistics partners can meet all of your needs, from specialised trucking and hazardous products shipment to escort services.


Mechanical Methods for Transport


Having better tools at your disposal can help you be more visible and provide better service to your customers. Assure top-tier freight management by checking that your logistics partner makes use of cutting-edge tools like a transportation management system (TMS). When transporting bulky, delicate, expensive, or perishable items, having access to real-time load updates is crucial.


Bridging Verified  Logistics Provider


We at CPECB verified and experienced Logistics bridging Services have been doing this for over a decade, and the businesses in our network have been transferring specialised cargo for anywhere from five to ten years. Everything from heavy machinery for mining and construction to oilfield tools to food and medication can be bridged across the CPECB. Strategic route planning, permit quotes, pilot cars, police escorts, and more are just some of the specialist shipping services we offer. Plus, you may reach out to our professionals at any time, day or night, and get real-time information on your shipments from anywhere in the world. You can save both time and money on your unique shipping requirements by using the CPECB’s bridging services for Logistics Services.

Do you have any concerns or require a heavy haul price estimate? Get in touch with a professional right away at info@cpecb.com !

SEZs exempted from minimum turnover tax

ISLAMABAD: The Federal Government has exempted Special Economic Zones (SEZs) from minimum turnover tax as Chinese and other investors expressed reservations saying that when SEZs are exempted from all taxes then why is this tax still applicable, official sources told Business Recorder.

The Special Economic Zones (SEZ) Act, 2012 was made for establishment, development and efficient operation of SEZs providing a legal and regulatory framework to encourage domestic and international investors for promotion and establishment of industrial infrastructure and for other related matters.

To incentivize such investment, the said Act provides certain fiscal and allied benefits to the SEZ investors, i.e. Zone Enterprises and Zone Developers. One such fiscal incentive, is “Exemption from all taxes on income”, given to both Zone Developer and Zone Enterprises under sections 36 & 37 of the said Act.

In the 6th meeting of the Board of Approvals held on October 7, 2020 under the chair of the Prime Minister, it was highlighted that despite explicit exemption provided under sections 36 and 37 of the Special Economic Zones Act of 2012 and section 126E of the Income Tax Ordinance 2001, in reality, all SEZ enterprises are being subjected up to 1.5% turnover tax under section 113 of the said Ordinance.

In the meeting, attention was invited to section 113(3)(a) of the Income Tax Ordinance 2001, under which Turnover Taxes are being charged. The zone enterprises and developers are required to incur heavy depreciation costs in the first few years of their coming into operation. Imposition of turnover taxes diminishes any sale proceeds that they may be making in these nascent years. These taxes along with depreciation costs diminish the profitability of the enterprises and may set them up for failure right at the onset of their operations.

According to sources, with regards to CPEC SEZs, several Chinese investors have shown reservations, as local as well as foreign investors do not understand imposition of turnover taxes when the benefits stated in the SEZ Law provide exemption from all taxes on income.

After deliberating upon the issue at length in the aforementioned meeting under the Chair of the Prime Minister, in the presence of Advisor to Prime Minister on Finance and Revenue and Chairman FBR, it was unanimously decided that the issue requires interpretation of the law therefore it may be referred to Ministry of Law. Accordingly, the case was referred to the Ministry’ of Law for opinion on October 21, 2020.

Resultantly, in the light of provisions of SEZ Act 2012 and Income Tax Ordinance 2001, Ministry of Law clarified that the “exemption from all taxes on income” available to the zone developers and zone enterprise includes exemption from minimum turnover tax.

Consequently, the clarification thus received was communicated to the FBR for needful action. However, despite clarification from the Ministry of Law and Justice, the minimum turnover tax is still being charged from the SEZ enterprises, as highlighted by various investors.

Regardless of the clarification provided by the Ministry of Law, the FBR has proposed that if the Federal Government intends to extend exemption from minimum turnover tax to the entities in the SEZs, it may be granted by making appropriate amendments in clause 11A of the Income Tax Ordinance 2001 through the forthcoming Finance Bill.

However, BoI is of the considered view that the ‘exemption from income tax’ is already inclusive of ‘exemption from minimum turnover tax’, whereas grant of exemption from minimum turnover tax in the manner proposed by FBR, will make it a new incentive to the SEZs, which might have unwarranted repercussions.

A similar proposal for exemption from minimum turnover tax was earlier taken up with the FBR to give effect in the Finance Bill 2020. However, the proposal was not agreed by the FBR.

BoI, being the SEZ Secretariat, argues that investment, whether foreign or local, must be encouraged by provision of fiscal incentives in letter and spirit. Therefore, it has proposed that if the SEZ Act 2012, provides for an exemption from all taxes on income including minimum turnover tax, then it should be provided to the investors, by issuance of a simple clarification by FBR to all its field formations, rather than treating it as a new incentive.

BoI has proposed that the Economic Coordination Committee of the Cabinet may direct the FBR to implement the exemption from minimum turnover tax being a tax on income, exemption from which is available to both SEZ developers and its enterprises.

The sources said, when the minutes of ECC held on May 21, 2021 came under discussion for ratification in the cabinet on June 8, 2021, Adviser to the Prime Minister on Commerce & Investment, Abdul Razak Dawood pointed out that the decision of ECC in case titled ‘exemption from minimum turnover tax under Special Economic Zones Act 2012’ had been recorded incorrectly as it was approved and not deferred. Minister for Finance & Revenue/Chairman ECC concurred.

After brief discussion, Cabinet also ratified the ECC decision in case titled ‘Exemption from Minimum Turnover Tax under Special Economic Zones Act 2012’, submitted by BoI, with the stipulation that the case was approved by the ECC and not deferred. The minutes of ECC may be corrected accordingly.

Copyright Business Recorder, 2021