New digital system will automatically calculate penalties and introduce time-bound mechanisms for disputes and appeals
ISLAMABAD: The Federal Board of Revenue (FBR) has notified new rules for managing overstayed cargo by amending the Customs Rules, 2001, introducing an automated mechanism for calculating, notifying and collecting penalties.
The FBR issued SRO 1347(I)/2026, introducing a new chapter titled “Overstayed Cargo Management Rules, 2026”. The new rules will come into force from October 1, 2026.
The framework is designed to streamline the handling of overstayed cargo through a digital, transparent and time-bound process.
Land customs stations and airports excluded
Under the new rules, the provisions will not apply to land customs stations and airports.
The framework also excludes several categories of goods, including goods imported under Chapter 99 of the First Schedule to the Customs Act, 1969, goods in transit or under international transshipment, personal baggage, less-than-container-load (LCL) export cargo and bulk cargo.
Automated penalty calculation
The rules provide that where a penalty becomes applicable under Section 82(1) of the Customs Act, the Customs Computerised System will automatically calculate the penalty.
The calculation will be made when the Goods Declaration (GD) is filed or within 24 hours of the GD release message, as applicable.
The system will then electronically notify the owner or authorised agent of the amount of penalty payable.
Traders or their authorised clearing agents will have the option to accept the penalty and pay it through the WeBOC payment module or contest the notice.
Five-day limit for deciding disputes
Where a penalty is contested, the case will be referred to the relevant Collector or authorised officer for a decision.
The officer will be required to decide the case within five working days. The deadline may be extended by a further five working days by the Chief Collector of Customs, provided reasons for the extension are recorded.
If the penalty notice is vacated, the Customs Computerised System will allow the GD to be filed or remove the payable penalty, as applicable.
If the penalty is upheld, the amount determined by the competent authority will be processed through the WeBOC system.
Electronic appeal mechanism introduced
The rules also establish an electronic appeal mechanism for persons aggrieved by a decision.
An aggrieved person may file an appeal electronically before the relevant Chief Collector within 15 days of the order. The appeal is required to be decided within five working days.
The new framework is intended to reduce manual intervention and provide traders with a clearly defined process for the assessment, payment and challenge of penalties relating to overstayed cargo.
By introducing automated penalty calculations, electronic notifications and fixed timelines for decisions and appeals, the FBR aims to make overstayed cargo management more efficient and predictable.