ISLAMABAD: The Federal Board of Revenue (FBR) has amended the Customs Rules, 2001, introducing mandatory physical inspection of goods before their auction and a new appeal mechanism for aggrieved bidders.
The changes were notified through S.R.O. 1630 (I)/ 2026, under the relevant provisions of the Customs Act, 1969.
Under the amended Rule 61, goods offered for auction will have to be made available for inspection by prospective bidders before the auction date. The inspection will be conducted according to a timeline approved by the concerned Collector.
The FBR has also amended Rule 73, requiring every successful bidder to submit an undertaking confirming that the goods for which the bid was submitted had been physically inspected.
The prescribed undertaking, included as Appendix-A to Chapter V of the Customs Rules, requires bidders to confirm that they or their authorised representatives inspected the goods, including their physical condition, before participating in the bidding process.
The undertaking further provides that bidders will not subsequently raise objections, claims, disputes or seek revision of rates, compensation or cancellation of the auction on the basis of alleged discrepancies concerning the goods.
Meanwhile, a new sub-rule (3) has been added to Rule 75, providing an appeal mechanism for bidders aggrieved by an order passed by the Collector under the relevant provisions. Under the new provision, an aggrieved bidder may file an appeal before the concerned Chief Collector within 15 days of the date of the Collector’s order.
The Chief Collector will provide the appellant an opportunity of hearing and will be required to decide the appeal within 60 days of its filing.
The amendments also provide for the insertion of the prescribed bidder undertaking into the Customs Rules, establishing a formal record of pre-auction inspection.
The latest changes are expected to provide a more clearly defined procedure for customs auctions by setting out the inspection process, documenting bidders’ acceptance of the condition of auctioned goods and establishing a specified timeframe for appeals, tax experts added.
Copyright Business Recorder, 2026
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