Sunday, August 10, 2025

FBR Cracks Down on Delayed Tax Payments After Port Auctions

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Islamabad – In a move to tighten customs enforcement and ease port congestion, the Federal Board of Revenue (FBR) has issued new directives targeting importers who delay payment of duties and taxes after their goods are auctioned.

The FBR has formally instructed Customs Collectors across Pakistan to begin penalizing importers who fail to pay duties promptly once their goods have been auctioned. These penalties, outlined under existing customs laws, are now to be strictly implemented under the updated provisions of the Finance Act 2025 and the Customs Act, 1969.

Why This Matters

Uncollected goods left idle at ports not only clog critical infrastructure but also disrupt supply chains. Under Section 82 of the Customs Act, goods that remain uncleared, unwarehoused, or unremoved from ports are subject to auction. However, post-auction delays in duty payments have become a recurring problem. The FBR’s new enforcement push aims to break that cycle.

While penalties are now mandatory in most cases, Customs Collectors retain discretionary power to waive them under exceptional circumstances.

Technology and Timeframes: New Rules in Play

The FBR has ordered the Chief Collector of Customs (Appraisement-South) in Karachi to coordinate with the WeBOC (Web-Based One Customs) system to ensure these new rules are built into its digital framework.

Additionally, the FBR has revised timelines for customs adjudication cases. Under the amended Section 179(3) of the Customs Act, authorities now have 45 days instead of 30 to resolve disputes involving goods stuck at sea ports, dry ports, or airports.

Subsection 4 of the same section has also been updated, allowing the FBR more control over how cases are handled — including power to shift cases or extend deadlines if justified in writing.

E-Commerce Crackdown: Courier Threshold Slashed

In another significant policy shift, the FBR has reduced the de minimis threshold for courier parcels from Rs 5,000 to Rs 1,000. This move is aimed at curbing widespread abuse of the exemption facility by individuals and businesses, particularly in the e-commerce sector.

Officials say this reduction is part of broader efforts to plug revenue leakages through under-invoicing and misuse of customs concessions.

Airport Enforcement to Be Tightened

To back these reforms with action, all Customs field offices at airports — especially in Islamabad — have been instructed to ensure strict compliance. The FBR wants no gaps in enforcement at key entry points.

Ali Khan
Ali Khan
Ali Khan is a senior journalist covering politics, business, and national news across Pakistan. His reporting combines accuracy, insight, and SEO-rich writing to deliver timely updates and in-depth stories to digital audiences across leading Pakistani news platforms.

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