‘Disputed scrap’ FBR directs Customs to enforce new law

ISLAMABAD: The Federal Board of Revenue (FBR) has directed Collector of Customs to strictly implement the new law that scrapping and mutilation shall not be allowed for quantity exceeding 10 percent of the imported goods.

In this regard, the FBR has issued instructions to the field formations for strict compliance at airports and ports.

To limit the facility of allowing mutilation/scrapping of disputed scrap only to bona fide disputed goods, a provision has been added to Section 27A of the Customs Act that scrapping and mutilation shall not be allowed for quantity exceeding ten percent of the imported goods.

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

According to the Finance Act 2025, “Provided further that scrapping and mutilation shall not be allowed for quantity exceeding ten percent of the imported goods”, it added.

Official sources told Business Recorder that the law has been introduced to check massive misuse of the facility in the past by the importers.

Copyright Business Recorder, 2025