FBR Launches Classification Centre to Settle Customs Disputes by August 2025
The Federal Board of Revenue (FBR) has set up a new “Classification Centre” to resolve pending customs classification disputes between importers and the customs department by August 31, 2025. This move is aimed at speeding up the process of resolving issues related to the classification of goods.
On Tuesday, the FBR issued an order to update the Customs General Order No. 12 of 2002, creating a new committee or center to handle these disputes.
Under the new system, all new classification disputes must be resolved through classification rulings within 120 days of being received by the Classification Centre or Committee. If needed, the deadline can be extended by an additional 30 days, with approval from the Chief Collector of Customs Appraisement-South in Karachi.
For disputes that have been pending for a while, the goal is to resolve them within 120 days, but no later than August 31, 2025. The Secretary of the Classification Committee will be responsible for ensuring that these pending cases are addressed on time.
Routine classification matters will continue to be handled by the respective Collectorates at their level. However, classification disputes can be referred to the newly established Classification Centre at the Collectorate of Customs Appraisement-East in Karachi, with approval from the concerned Collector or Director.
The Classification Centre will have the following roles:
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Examine and resolve disputes referred by Customs Collectorates, Directorates, other Customs units, or even traders.
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Compile and publish yearly classification rulings.
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Create and maintain a database of classification rulings, documents, and related information.
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Collaborate with the World Customs Organization (WCO) to share information on classification matters and help train officers on HS classifications.
The Classification Centre will be managed by a classification committee, which will include the Collectors of Customs from Appraisement-East, Appraisement-West, and SAPT in Karachi. The Additional Collector (Hqrs) at Appraisement-East will serve as the secretary to the committee. The committee may also invite officers from other Collectorates or Directorates, along with a representative from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and relevant trade associations.
The committee will meet at least twice a month but can hold more meetings as needed to resolve disputes. Online meetings will also be held when necessary. It will examine each case based on the Pakistan Customs Tariff, WCO rulings, and explanatory notes.
If there is a disagreement among the three committee members, the majority decision will prevail. Once a decision is made, the classification rulings will be announced through a public notice to the trade, customs officials, and the FBR. Any local classification committees operating in other Collectorates or Directorates will be dissolved, and their pending cases will be referred to the central classification committee.
The Collectorate of Customs Appraisement-East will provide the necessary resources, space, and support to run the Classification Centre effectively.
