FBR Implements New Refinements in Enhancing the Customs Dispute Resolution Process
The Federal Board of Revenue (FBR) has made significant alterations to resolving customs classification disputes in Pakistan. These changes, which are included in Customs General Order No. 02 of 2025, are to ensure the process is more streamlined, transparent, and faster. The revisions involve centralizing dispute resolution at a single Classification Centre in Karachi and phasing out the outdated approach used in 2002.
Major Modifications to the Dispute Settlement Process
Centralized Classification Committee:
A three-member committee will now handle customs classification disputes. The committee will comprise the collectors of Customs Appraisement-East, Appraisement-West, and SAPT Karachi. The Additional Collector of Appraisement-East will act as the secretary.
Representatives from trade organizations, such as the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and other trade bodies, will participate in the discussions. Technical suggestions may also be sought from experts and lab officials.
The committee will sit at least twice a month, with the facility of video meetings.
Timely Resolutions:
New grievances will be decided within 120 days, with the facility of a 30-day extension with the approval of the Chief Collector of Appraisement-South.
All pending cases are to be cleared by August 31, 2025.
Dissolution of Local Committees:
The local classification committees in different collectorates will be dissolved, and their cases will be shifted to the centralized Classification Centre.
Increased Transparency:
All rulings will be published every year and disseminated through public notices. A digital database of decisions will be established, connected to the World Customs Organization (WCO) standards.
These reforms will lower delays and inconsistencies in the customs classification procedure, which typically hinders trade. Private-sector stakeholders and experts are being engaged by the FBR to bring more confidence and faith in the process.
The order was signed by Zakir Muhammad, the FBR’s Secretary for Law and Procedure. The Collectorate of Customs Appraisement-East will support the new centralized system.
The amendments are a reaction to persistent grievances from traders regarding bureaucratic holdups. By conforming to WCO standards and imposing strict deadlines, Pakistan aims to enhance its customs operations and facilitate business.
