Draft amendments require bidders to confirm physical inspection of auctioned goods before participating in Customs auctions
ISLAMABAD: The Federal Board of Revenue (FBR) has proposed making it compulsory for bidders participating in Pakistan Customs auctions to submit a written undertaking confirming that they have physically inspected the auctioned goods before placing a bid.
The proposal has been introduced through SRO 1277(I)/2026, issued on Wednesday as draft amendments to the Customs Rules, 2001, with the objective of improving transparency, strengthening the auction process and reducing disputes after the sale of goods.
Goods to Be Available for Inspection
Under the proposed amendments, auctioneers will be required to make auctioned goods available for inspection by prospective bidders for at least three days before the scheduled auction.
The FBR said the requirement is intended to provide bidders with sufficient opportunity to assess the quality, condition and nature of the goods before participating in the auction process.
Mandatory Undertaking Before Bidding
The draft rules require every bidder to submit a written undertaking on the official letterhead of the bidding firm or company before taking part in an auction or any subsequent re-bidding process.
The undertaking must be duly signed and stamped by the authorised signatory of the firm or company.
Declarations Required from Bidders
Under the proposed format, bidders will be required to declare that:
• They have personally, or through an authorised representative, physically inspected the goods before participating in the auction.
• The inspection was carried out on a specified date and at the designated location.
• They have examined the existing physical condition of the goods.
• They will not raise any objection, claim, dispute or seek revision of the bid amount, compensation or cancellation of the auction on the basis of any alleged discrepancy in the goods after submitting the bid, its acceptance or taking possession of the goods.
Details to Be Included in the Undertaking
The proposed undertaking will require bidders to provide the following information:
• Name of the bidder or authorised representative.
• Name of the bidding firm or company.
• Registered or business address.
• Computerised National Identity Card (CNIC) number.
• National Tax Number (NTN) or registration number.
• Contact details.
• Official stamp or seal.
• Signatures of the bidder and authorised representative, where applicable.
Where a representative participates on behalf of a bidder, the undertaking must include the CNIC numbers of both the bidder and the authorised representative.
FBR Seeks Greater Transparency
According to the FBR, the proposed amendments are aimed at ensuring bidders are fully aware of the condition of auctioned goods before submitting their bids.
By making physical inspection mandatory and requiring a formal undertaking, the tax authority intends to minimise post-auction disputes, discourage requests for price revisions or auction cancellations, and enhance transparency and efficiency in the Customs auction process.
The draft amendments issued through SRO 1277(I)/2026 will come into force after completion of the prescribed legal process under the Customs Rules, 2001.