Export clearance is a critical compliance step in Pakistan’s international trade regime. Section 131 of the Customs Act, 1969, as applicable for tax year 2026, lays down the mandatory legal requirements that must be fulfilled before any goods are allowed to be loaded for exportation.
This guide explains the process in simple terms, highlights the role of the Customs Computerized System, and outlines the powers of customs authorities.
🔍 What Is Customs Clearance for Exportation?
Customs clearance for exportation refers to the legal and procedural steps an exporter must complete before goods can be:
• Loaded on a vessel, aircraft, or vehicle
• Exported outside Pakistan
👉 No export loading is allowed unless Section 131 conditions are fully met.
📜 Legal Basis: Section 131, Customs Act, 1969 (2026)
Section 131 specifies four mandatory conditions that must be fulfilled before export loading.
🧾 Section 131(1): Conditions Before Loading Goods for Export
1️⃣ Filing of Goods Declaration
Under Section 131(1)(a):
• The exporter (owner of goods) must:
o File a Goods Declaration (GD)
o In the form and manner prescribed by the Federal Board of Revenue (FBR)
• The declaration must contain:
o Correct and complete particulars of the goods
• Exporter must:
o Assess and pay applicable duties, taxes, or charges (if any)
✔ Filing is done through the Customs Computerized System (WeBOC)
2️⃣ Duty Drawback Claim Reflection
Under Section 131(1)(b):
• If a duty drawback is claimed:
o It must be:
Properly calculated
Accurately reflected
Embedded in the export declaration
• Claim processing occurs through:
o Customs Computerized System
📌 Incorrect or missing claims may delay clearance.
3️⃣ Customs Verification and Satisfaction
Under Section 131(1)(c):
• Customs authorities must:
o Verify correctness of:
Export declaration
Assessment
Payment of duties, taxes, and charges
o Confirm admissibility of duty drawback claimed
✔ Clearance is subject to customs scrutiny and examination, if required.
4️⃣ Special Case: Passenger Baggage & Mail Bags
Under Section 131(1)(d):
• The appropriate officer may:
o Permit export of:
Passenger baggage, or
Mail bags
• Even if:
o Clauses (a), (b), and (c) are not fulfilled
📌 This ensures operational flexibility for non-commercial exports.
🚢 Section 131(2): Export of Imported Goods Lying in Port Area
If goods:
• Were imported, and
• Are lying within a port area, and
• Are now intended to be exported
Then:
• The Collector of Customs may allow export
• Subject to:
o Conditions notified by the FBR from time to time
🛂 Power to Grant Exemptions
🔔 Board’s Exemption Authority
The Federal Board of Revenue may, by notification:
• Exempt:
o Certain goods or classes of goods
o Certain persons or classes of persons
• From:
o All or part of Section 131 requirements
• Subject to:
o Specified restrictions and conditions
🔍 Examination at Designated Place
The Collector of Customs may:
• Order examination of:
o Any goods
o Specific exporters
o A class of exporters
• At:
o A designated place chosen by the Collector
• Reasons must be:
o Recorded in writing
✔ Strengthens risk-based enforcement in 2026.
📊 Export Clearance Process – At a Glance
| Step | Requirement |
| Goods Declaration | Mandatory |
| Duty / Taxes | Pay if applicable |
| Duty Drawback | Declare in GD |
| Customs Verification | Required |
| Permission to Load | Final approval |
❓ Frequently Asked Questions (FAQs)
Q1: Can goods be loaded before filing GD?
No. Filing of Goods Declaration is mandatory under Section 131.
Q2: Is duty drawback automatic?
No. It must be calculated, declared, and verified by Customs.
Q3: Can Customs examine export goods anywhere?
Yes. The Collector can designate an examination place with recorded reasons.
Q4: Are there exemptions from Section 131?
Yes. FBR may grant exemptions via official notifications.
🚦 Why Section 131 Matters in 2026
✔ Ensures accurate export declarations
✔ Prevents misuse of duty drawback schemes
✔ Enhances digital compliance via WeBOC
✔ Strengthens export documentation integrity
🧠 Final Takeaway
Section 131 of the Customs Act, 1969, as updated for tax year 2026, establishes a clear, technology-driven export clearance regime. Exporters must ensure complete compliance before loading goods to avoid delays, penalties, or rejection of export benefits.
⚠️ Disclaimer: This content is provided for general information only and does not constitute legal, tax, or professional advice. For accurate application, consult the Customs Act, 1969, relevant rules, and FBR notifications, or seek professional guidance.