The Federal Board of Revenue (FBR) has introduced a revised penalty regime to address delays in customs declarations, clearance and export of goods. The new measures will take effect from October 1, 2026, and can impose fines of up to Rs1 million per case.
The changes are aimed at encouraging traders to complete customs procedures on time and prevent imported or export goods from remaining at customs stations for unnecessarily long periods.
Higher Fines for Late Declarations
Under the new schedule, importers and other relevant parties will face penalties when a goods declaration for home consumption, warehousing or transshipment is not submitted within 20 days after the arrival of the goods at a customs station.
Once the initial period has passed, a fine of Rs25,000 per day will apply for the next five days. If the delay continues, the penalty will increase to Rs50,000 for every additional day, with the total fine limited to Rs1 million.
Delays After Assessment and Payment
The FBR has also introduced penalties for goods that remain uncleared even after customs assessment has been completed and applicable duties and taxes have been paid.
Where a declaration was submitted before the vessel’s arrival, goods must be removed within five days after assessment and berthing. Failure to do so will result in a Rs15,000 daily penalty for the next five days, followed by a Rs20,000 daily fine for each subsequent day.
The maximum penalty under this provision is also Rs1 million.
Another category applies when the declaration is filed after the vessel has already berthed. If the goods are not removed within five days after clearance of the declaration, the penalty will begin at Rs10,000 per day for five days and then increase to Rs20,000 per day.
Exporters Also Face Time-Based Penalties
The revised rules extend to export consignments as well. Goods entering a port for export must be loaded onto the relevant conveyance within 15 days.
If they remain unshipped, the exporter will face a fine of Rs5,000 per day for the next five days. Continued delays will attract a higher penalty of Rs15,000 per day, with the maximum liability capped at Rs1 million per case.
New Notification Replaces Previous Rules
The revised penalty structure was notified through S.R.O. 1346(I)/2026, issued by the Revenue Division on August 13, 2026. It has been issued under Section 82(1) of the Customs Act, 1969, and replaces the earlier notification S.R.O. 1387(I)/2025 dated July 31, 2025.
According to the notification, penalties will be dealt with through the prescribed adjudication process or by voluntary payment in accordance with the relevant rules.
Impact on the Trading Community
The new system could have a significant financial impact on businesses that fail to meet customs deadlines. Because the penalties increase as delays continue, traders will have a stronger incentive to submit declarations promptly, complete assessment requirements and remove goods without unnecessary delays.
Importers and exporters may therefore need to strengthen their documentation, compliance and logistics procedures to avoid accumulating daily fines.
Conclusion
The FBR’s latest notification signals a tougher approach toward delays in customs clearance and export procedures. With penalties reaching as much as Rs1 million per case, businesses will need to closely monitor statutory deadlines once the new regime becomes effective on October 1, 2026.
The measure is ultimately intended to promote faster customs processing, reduce congestion at customs stations and encourage greater compliance among Pakistan’s trading community.