FBR’s proposal to make physical inspection of goods auctioned mandatory

ISLAMABAD: The Federal Board of Revenue (FBR) has proposed making physical inspection of the goods auctioned mandatory for bidders before they participate in Customs auctions or re-bidding.

The move is aimed at reducing post-auction disputes and ensuring greater transparency in the disposal of confiscated and other auctionable goods.

The FBR, through draft S.R.O. 1277(I)/2026 issued on Monday, has proposed further amendments to the Customs Rules, 2001, particularly Chapter V, dealing with auction procedures.

The draft amendments have been issued under the powers conferred by section 219 of the Customs Act, 1969, read with the relevant provisions of the Sales Tax Act, 1990, the Federal Excise Act, 2005 and the Income Tax Ordinance, 2001.

The FBR has invited objections and suggestions from all persons likely to be affected by the proposed amendments. Such objections or suggestions may be submitted to the Board within 10 days of publication of the draft amendments in the official Gazette.

Availability of goods for inspection

Under the proposed amendment to rule 61 of the Customs Rules, 2001, the auctioneer would be required to ensure that the goods offered for auction remain available for inspection by prospective bidders at least three days prior to the auction date. The proposed provision states that the auctioneer shall ensure availability of the goods for inspection by bidder(s) three days before the scheduled auction.

The measure is intended to provide prospective bidders an opportunity to physically examine the goods and determine their condition before making an offer.

Copyright Business Recorder, 2026