ISLAMABAD: The Federal Board of Revenue (FBR) has introduced significant amendments to the methodology for resolving customs classification disputes, aiming to enhance efficiency and transparency in trade-related decisions. The changes, outlined in Customs General Order No. 02 of 2025, revise procedures established under a 2002 order and focus on centralizing dispute resolution under a dedicated Classification Centre in Karachi.
Key Reforms
1. Centralized Classification Committee:
– A three-member committee, comprising the collectors of Customs Appraisement-East, Appraisement-West, and SAPT Karachi, will now oversee classification disputes. The Additional Collector of Appraisement-East will serve as secretary.
– Trade representatives, including the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and relevant industry associations, will participate in proceedings. Experts and lab officials may also be consulted for technical input.
– The committee must meet at least twice monthly, with provisions for virtual meetings.
2. Timely Resolutions:
– Fresh disputes must be resolved within 120 days, extendable by 30 days with approval from the Chief Collector of Appraisement-South.
– Pending cases are to be cleared by Aug. 31, 2025.
3. Dissolution of Local Committees:
– Existing local classification committees across collectorates will be disbanded, with cases transferred to the centralized body.
4. Transparency Measures:
– Rulings will be published annually and disseminated via public notices. A digital database of decisions will be maintained, with linkages to World Customs Organization (WCO) standards.
The FBR emphasized that the reforms aim to reduce delays and inconsistencies in customs classifications, which often hinder trade. The inclusion of private-sector stakeholders and experts is expected to bolster confidence in the process.
Zakir Muhammad, FBR’s secretary for law and procedure, signed the order, which takes immediate effect. The Collectorate of Customs Appraisement-East will provide logistical support for the new center.
The amendments follow longstanding complaints from traders about bureaucratic bottlenecks. By aligning with WCO guidelines and enforcing strict timelines, Pakistan seeks to modernize its customs infrastructure and improve ease of doing business.