FBR orders penalties for delayed duty payment after goods auction

ISLAMABAD: The Federal Board of Revenue (FBR) has directed the Collectors of Customs to impose penalties on importers involved in unnecessary delay in payment of duty & taxes after auction of goods at ports.

The FBR issued instructions to the Collectors of Customs here on Tuesday to enforce enforcement provisions of the Customs Act 1969.

Tax authorities have strictly directed the heads of customs in the field formations to enforce provisions of the Finance Act 2025.

Collectors of Customs were informed section 82 of the Customs Act provides a mechanism for auction of goods not cleared or warehoused or transhipped or removed from the port. To avoid port congestion and unnecessary delay in payment of duty & taxes, penalties have been provided to cater different situations arising at the ports. However, the Collector of Customs in unavoidable circumstances may waive-off the penalty.

The FBR has also directed the Chief Collector of Customs, Appraisement (South), Karachi is directed to ensure development of the system accordingly in WeBoC.

Senior FBR officials also informed Collectors of Customs that amendment has been made in sub-section (3) of Section 179 of the Customs Act, 1969 whereby the time period for deciding the cases related to clause (s) of section 2 and for cases where goods are lying at sea-port, airport or dry port has been enhanced from 30 days to 45 days.

Amendment has also been made in sub-section (4) whereby Board can regulate the system of adjudication including transfer of cases and extension of time-limit as deemed appropriate after reasons to be recorded in writing.

The de-minimise limit for courier parcels has been revised/reduced from Rs 5,000 to Rs1,000 to check misuse of the facility particularly for e-commerce.

The chief collector of customs, Airports, Islamabad and all collectors of Customs Airports are directed to ensure strict implementation, FBR officials added.

Copyright Business Recorder, 2025