Karachi, October 25, 2024 – The Federal Board of Revenue (FBR) has proposed amendments to the Baggage Rules, 2006, introducing provisions for the confiscation of goods brought into Pakistan in commercial quantities. The draft amendments, published through SRO 1649(I)/2024, signal FBR’s intent to intensify regulatory scrutiny over items entering the country under personal baggage exemptions.
Currently, travelers arriving in Pakistan who bring goods in commercial quantities face a penalty amounting to 30% of the goods’ declared value in addition to any applicable customs duties and taxes. However, under the newly proposed amendments, such goods will now be subject to outright confiscation, pending evaluation by an adjudicating authority. This development marks a significant shift in policy, with the FBR aiming to dissuade individuals from bypassing formal import channels by importing goods under the guise of personal baggage.
The FBR has extended an invitation to stakeholders for feedback on the draft changes, allowing a 15-day window from the date of publication to submit input. This consultative approach underscores FBR’s commitment to transparency and its efforts to engage with the public on regulatory changes that may affect Pakistani travelers and citizens residing abroad.
Historically, the Baggage Rules facilitated duty-free entry of items for Pakistani nationals, including those with dual citizenship, foreign nationals of Pakistani origin, and expatriates. This concession enabled travelers to import goods for personal or household use without incurring additional financial burdens. However, due to rising concerns over the misuse of these privileges for commercial gains, the FBR has acted to reinforce the original intent of the baggage exemptions, ensuring they are not exploited for business purposes.
The FBR also clarified that restricted goods under the Baggage Rules remain subject to additional regulations, including specific licenses, permissions, and potential conditions on import and export. This means that items subject to legal controls or restrictions cannot bypass the formal channels even under baggage provisions, as they will face strict confiscation procedures if improperly declared.
With these amendments, the FBR aims to strike a balance between facilitating genuine travelers and ensuring that commercial imports are regulated within formal structures. This step reflects the government’s broader commitment to curbing illicit trade practices and enhancing revenue collection through regulated import channels. Once ratified, the revised rules are expected to bolster enforcement, ensuring that import activities align with Pakistan’s economic policies and contribute to the country’s fiscal integrity.