FBR Mandates Forensic Lab Tests for Vehicle Auctions

FBR Mandates Forensic Lab Tests for Vehicle Auctions

The Federal Board of Revenue (FBR) has introduced a significant policy change, requiring the Customs Department to conduct forensic laboratory tests through reputable forensic labs before auctioning confiscated vehicles. This move aims to enhance transparency in the auction process and ensure the sale of non-tampered vehicles to buyers.

According to the FBR, the new rule, however, does not apply to un-cleared or overstayed vehicles imported through ports. These categories of vehicles remain exempt from the forensic testing requirement.

This development comes as part of an amendment to the Customs Rules 2001, implemented through SRO 1964(I)/2024, issued by the FBR on November 27, 2024. The amendment reflects FBR commitment to curbing the auction of tampered vehicles, a practice that has raised concerns over the integrity of auctioned assets.

Under the revised procedure, all confiscated vehicles—except for port-imported overstayed or un-cleared vehicles—must undergo a forensic test before being placed in an auction. This ensures that potential buyers can have confidence in the authenticity and condition of the vehicles they purchase.

The timing of the forensic test is critical, as it must be conducted prior to the auction process. This step will help identify any tampering, such as chassis modifications, engine alterations, or other discrepancies that might compromise the vehicle’s integrity.

By mandating forensic tests, the FBR aims to foster greater transparency in its operations and protect buyers from fraudulent practices. This policy is also expected to act as a deterrent to the manipulation of confiscated vehicles, ensuring only legitimate and untampered assets are auctioned.

The decision is seen as a positive step toward modernizing the auction process, aligning it with international best practices, and bolstering public trust in government auctions. Buyers can now look forward to acquiring vehicles with verified credentials, reducing risks associated with tampered assets.

The FBR’s move is part of broader efforts to improve the regulatory framework, enhance operational efficiency, and uphold ethical standards in the management of confiscated assets.