FBR Tightens Penalties for Delayed Customs Clearance

The Federal Board of Revenue (FBR) has introduced a revised penalty structure for delays involving the filing of goods declarations and the clearance of consignments from customs stations, with the new rates taking effect from October 1, 2026.

Under the updated schedule, failure to submit a goods declaration for home consumption, warehousing or transhipment within 20 days of a consignment arriving at a customs station will attract a penalty of Rs25,000 for each of the following five days. The charge will then increase to Rs50,000 for every additional day, subject to a maximum penalty of Rs1 million per case.

Where a declaration is submitted before a vessel berths but the goods remain uncleared for more than five days after assessment and berthing, despite the applicable duties and taxes having been paid, a penalty of Rs15,000 per day will apply for the next five days. The rate will subsequently rise to Rs20,000 per day, with the total liability capped at Rs1 million.

In cases where a declaration is submitted after the vessel has berthed, but the goods are not removed for home consumption, warehousing or transhipment within five days of clearance of the declaration, the penalty will be Rs10,000 per day for the next five days and Rs20,000 for each day thereafter. The maximum penalty remains Rs1 million per case.

For export consignments that are not loaded onto a conveyance within 15 days of entering the port, the revised rules prescribe a penalty of Rs5,000 per day for the subsequent five days, followed by Rs15,000 per day thereafter, again subject to an overall ceiling of Rs1 million.

The Revenue Division issued S.R.O. 1346(I)/2026 on August 13, 2026, under the authority granted by sub-section (1) of Section 82 of the Customs Act, 1969. The latest notification replaces the earlier S.R.O. 1387(I)/2025 issued on July 31, 2025.

According to the notification, enforcement of the penalties will be carried out through adjudication proceedings or voluntary payment, in accordance with the relevant rules framed under the second proviso to sub-section (1) of Section 82.