KARACHI: Pakistan’s Federal Board of Revenue (FBR) has issued a draft notification proposing new rules to automate and streamline the handling of penalties for overstayed cargo at the country’s ports.
The draft, issued Monday as SRO 1081(I)/2026, would insert a new chapter — Chapter XLIX, titled “Overstayed Cargo Management Rules” — into the Customs Rules, 2001. The FBR said it was acting under powers granted by the Customs Act, 1969, the Sales Tax Act, 1990, the Federal Excise Act, 2005, and the Income Tax Ordinance, 2001.
According to the notification, the proposed rules would not apply to land customs stations or airports. They would also exempt certain categories of goods from penalty provisions under Section 82(1) of the Customs Act, including goods imported under Chapter 99 of the act’s first schedule, goods in transit or international transshipment, personal baggage, and bulk cargo.
Under the draft procedure, Pakistan’s Customs Computerized System would automatically calculate penalties at the time a Goods Declaration is filed, or before goods are released, based on rates set by the FBR with approval from the minister in charge. An electronic show-cause notice specifying the penalty amount would then be issued to the goods’ owner or authorized agent.
Traders would have the option to either accept the penalty and pay it through the WeBOC payment module, or contest it through adjudication. Cases sent to adjudication would be assigned to the relevant collector, who would be required to issue a ruling within five working days of the notice — a deadline that could be extended by another five working days by the chief collector of customs, provided reasons are recorded in writing.
The draft also outlines an appeals process, allowing an aggrieved party to file an appeal in the computerized system before the relevant chief collector within 15 days of an order, with a decision required within five working days.
The FBR said the specific penalty rates would be prescribed separately through a notification issued by the board following approval from the minister in charge.
The board has invited objections or suggestions on the draft from affected parties, which must be submitted within three days of the notification’s publication in the official Gazette, in accordance with Section 219(3A) of the Customs Act.
If finalized, the rules are set to take effect Aug. 31, 2026.
The notification was signed by Zubair Shah, Secretary (Law & Procedure).