FBR Sets New Customs Delay Fines of Up to Rs1 Million

New penalty schedule begins October 1

Pakistan's Federal Board of Revenue has notified a new schedule of penalties for importers and exporters who delay goods declarations or leave consignments at customs facilities beyond specified periods. The measures take effect on October 1 under SRO 1346 of 2026 and replace the previous notification.

The framework uses daily fines that increase when a delay continues, with a maximum of Rs1 million for each covered violation. FBR says the objective is to improve customs compliance, discourage long storage at ports and move cargo through assessment and clearance processes more quickly.

Late goods declarations face the highest daily rate

Importers who do not file a goods declaration for home consumption, warehousing or transhipment within 20 days of arrival will face a penalty of Rs25,000 per day for the next five days. After that period, the daily amount rises to Rs50,000 until the Rs1 million ceiling is reached.

Goods declarations are central to customs control because they identify the cargo, its value, classification, origin and intended treatment. Delayed filing can obstruct assessment, create congestion and make it harder for authorities and port operators to plan the use of limited storage space.

Cargo removal deadlines also carry fines

Where a declaration is filed before a vessel berths, goods must be removed within five days after assessment is completed, the vessel has berthed and applicable duties and taxes have been paid. A delay attracts Rs15,000 per day for five days and then Rs20,000 per day.

For declarations filed after berthing, goods left uncleared for more than five days face Rs10,000 per day during the following five-day period and Rs20,000 per day thereafter. These fines also stop at the Rs1 million maximum set by the notification.

Exporters receive a separate timetable

Export consignments that are not loaded onto the intended conveyance within 15 days of entering the port will attract Rs5,000 per day for the next five days. Continued delay raises the charge to Rs15,000 per day, subject to the same overall cap.

Export delays can affect shipping schedules, terminal capacity and commitments made to overseas buyers. Businesses will need closer coordination among exporters, customs agents, freight forwarders, terminals and shipping lines to ensure documentation and cargo are ready within the permitted period.

Compliance needs clear digital records

FBR said penalties can be enforced through adjudication proceedings or paid voluntarily under the rules. Importers and exporters should preserve timestamps for vessel arrival, declaration submission, assessment completion, payment and cargo removal because those records may determine whether a fine is correctly calculated.

A digital customs system should provide advance alerts as deadlines approach and explain the reason when cargo is held by an agency rather than the trader. Businesses should not be penalised for delays caused solely by unavailable government systems, inspections or port restrictions beyond their control.

Faster ports can reduce business costs

Cargo that remains at a port occupies space, adds handling costs and contributes to congestion. Predictable clearance can improve supply chains for manufacturers awaiting raw materials and help exporters meet delivery schedules. In that sense, the reform can support competitiveness if administration is consistent.

Penalties alone will not solve every delay. Customs valuation disputes, laboratory tests, licensing requirements and coordination among agencies can also hold consignments. FBR should publish performance data and address institutional bottlenecks alongside enforcing deadlines for private parties.

What businesses should do before implementation

Companies have time before October 1 to review internal procedures, contracts with clearing agents and responsibility for document preparation. Staff should understand each deadline, while management systems should flag consignments at risk of crossing a threshold before daily fines begin.

The new rules create a significant financial incentive to act promptly. Their success, however, should be judged by reduced clearance times and lower congestion rather than penalty revenue. A customs system works best when compliant trade moves quickly and enforcement focuses on avoidable or deliberate delay.