China and Pakistan trade by Road

The China-Pakistan Economic Corridor (CPEC) has transformed trade for China and Pakistan. Some of the most significant road arteries include the Karakoram Highway (KKH), in which trading from China to Pakistan by road has brought tremendous benefits such as decreased cost of transportation, increased quantities of trade, and, therefore, better economic collaboration between the two countries. In this article, we will explore the details of trading by road from China to Pakistan, including the necessary documentation, transport options, and even challenges.

Advantages of Trading from China to Pakistan through Road

  • Low Transportation Cost: Compared to air or sea freight, trading by road is significantly cheaper, thus an option for companies that want to minimize the cost of logistics.
  • Increased Volumes of Trade: The KKH has increased volumes of trade between China and Pakistan; it handles over 10,000 containers per month.
  • Enhanced Economic Trade: CPEC has enhanced the economic trade between China and Pakistan. The trade between these two countries is expected to be $20 billion in 2025.

Required Documents for Trading from China to Pakistan by road

1. Commercial Invoice

A commercial invoice is needed to clear both China and Pakistan customs.

A packing list is necessary to ensure that all cargo is accounted for during shipment.

The goods to be transported should present a certificate of origin establishing the country of origin.

Both China and Pakistan Customs require a customs declaration

Presenting an insurance certificate should be considered to prevent a loss or damage during transportation.

Transportation Modes when Trading from China to Pakistan Road

Truck Transport: :

This is the most popular type of transportation for trading between China and Pakistan by road.

Container Transports:

The trading between China and Pakistan is also available by road by transport in containers, which can either be transported by truck or train.

Rail Transport:

Railway is also an alternative that the traders can use for land transportation from China to Pakistan, as goods can be transported by trains directly from Chinese cities to the borders of Pakistan.

Obstacles Faced in Trading Between China and Pakistan through Land Transportation

Infrastructure Difficulties

KKH has a tendency to get frequently obstructed by landslides and floods.

Clearance

There is always the challenge of customs clearance where, more often than not, goods are delayed at the border due to paperwork.

Security

Security concerns also characterize this type of business where goods are susceptible to theft or damage while in transit.

Trading from China to Pakistan by road has several advantages, such as low transportation costs, high volumes of trade, and better economic cooperation between the two countries. However, there are also some challenges that need to be considered, such as infrastructure challenges, customs clearance, and security concerns. With an understanding of the documents required, transportation options, and challenges, businesses can better navigate the complexities of trading from China to Pakistan by road and enjoy the benefits of this growing trade corridor.

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