5-fold raise in penalty for late confirmation of VIRs: FBR ups advance notice requirement for vessels, cargoes to 72 hours

ISLAMABAD: The Federal Board of Revenue (FBR) has decided to increase the advance notice requirement for vessel information and cargo declarations to 72 hours, alongside a five-fold increase in the penalty for late confirmation of Vessel Intimation Reports (VIRs).

In this regard, the FBR has issued an SRO.1913(I)/2026 to notify draft amendments to the Customs Rules, 2001.

The changes are proposed to be made under the FBR’s powers conferred by Section 219 of the Customs Act, 1969, Section 50 of the Sales Tax Act, 1990, Section 40 of the Federal Excise Act, 2005, and Section 237 of the Income Tax Ordinance, 2001.

Under the proposed amendment to Rule 400, the system would confirm the VIR, 72 hours before the vessel’s estimated time of arrival (ETA), instead of the existing provision allowing confirmation 24 hours ahead of arrival, with the report otherwise capable of being filed up to 15 days before the ETA.

The FBR has also proposed amending Rule 402 to replace the existing requirement of filing cargo declarations 18 hours before the ETA with a 72-hour advance filing requirement. The existing exceptions relating to specified ports of loading under Rule 402 would remain relevant.

The proposed changes also seek to revise the penalty structure under Rule 411 for late confirmation of a VIR.

According to the revised rules, no fine would be imposed where the difference between the vessel’s ETA and the system time at receipt of the declaration is 72 hours or more. Where the difference is less than 72 hours, except for the specified ports of loading covered under Rule 402, a fine of Rs500,000 would be imposed, with the vessel allowed to berth 72 hours after confirmation of the VIR.

Under the existing Rule 411, a fine of Rs50,000 applies where VIR confirmation is received less than 24 hours before the ETA, with the vessel allowed to berth 24 hours after confirmation.

The proposed amendments would extend the advance reporting window for vessel information and cargo declarations while substantially increasing the financial consequences of late reporting, the FBR added.

Copyright Business Recorder, 2026