Updated Customs Act covers prohibited goods, duty evasion, unauthorised routes, transit pilferage, precious metals, narcotics and attempts to smuggle.
ISLAMABAD: The Federal Board of Revenue (FBR) has defined the term “smuggle” under Pakistan’s Customs Act, 1969 for Tax Year 2027, covering the unlawful movement, concealment and transportation of specified goods, as well as attempts to evade customs duties and taxes.
The FBR has issued the Customs Act, 1969, updated up to June 30, 2026, setting out the circumstances that constitute smuggling under the law.
What constitutes smuggling
Under the updated Customs Act, “smuggle” means bringing goods into or taking them out of Pakistan in violation of any prohibition or restriction currently in force.
The definition also covers involvement in carrying, transporting, removing, depositing, harbouring, keeping, concealing or retailing such goods.
It further includes the en-route pilferage of transit goods anywhere within Pakistan’s territorial jurisdiction, as well as evasion of customs duties or taxes payable on the goods.
Precious metals, currency and narcotics covered
The definition specifically includes gold bullion, silver bullion, platinum, palladium, radium, precious stones, antiques and currency.
It also covers narcotics and narcotic or psychotropic substances.
High-value precious metal and jewellery products
Smuggling also covers manufactured products made of gold, silver, platinum, palladium or radium, as well as precious stones, where their value exceeds Rs500,000.
The provision also applies to any other goods that the federal government may specify through a notification published in the official Gazette, where the applicable value exceeds Rs500,000.
Unauthorised routes and customs locations
The law further classifies the movement of goods through a route other than one declared under Section 9 or Section 10, or through a place other than a customs station, as smuggling.
The definition covers not only the actual act of bringing goods into or taking them out of Pakistan through unauthorised routes or locations, but also an attempt, abetment or connivance in such activity.
Essential commodities included
The definition also extends to essential commodities notified by the FBR.
This gives customs authorities a broad legal framework covering the physical movement and concealment of prohibited or restricted goods, unauthorised routes, customs duty and tax evasion, and attempts or assistance connected with such activities.
The provisions form part of the Customs Act, 1969, as updated by the FBR up to June 30, 2026, and provide the applicable customs law framework for Tax Year 2027.