Islamabad, July 1, 2025 – The National Assembly has officially passed the Finance Act 2025, incorporating key changes to the customs duty regime of Pakistan as proposed earlier through the Finance Bill 2025.
These amendments to the Pakistan Customs Act, 1969 aim to streamline trade procedures, rationalize enforcement provisions, and improve overall operational efficiency within the customs system.
According to a detailed commentary by PwC A.F. Ferguson & Co., several significant changes have been introduced through the Finance Act to address longstanding challenges and improve clarity in the enforcement of customs duties and procedures.
One of the notable adjustments includes the rationalisation of definitions for “Cargo Tracking System” and “e-bilty,” which were previously ambiguously defined in the draft Finance Bill. These updates will now offer better clarity to traders and regulatory agencies.
A major revision relates to the threshold for customs duty collection on low-value imports through post or courier services. Initially, it was proposed to reduce the de minimis value from Rs 5,000 to Rs 500. However, after industry feedback, the Finance Act has revised this limit to Rs 1,000, balancing revenue needs with trade facilitation.
In a shift from existing rules, the assessment of goods under transshipment will no longer be confined to the port of destination. The Finance Act 2025 now allows assessments to be conducted at locations and in manners prescribed by the Federal Board of Revenue (FBR), offering greater flexibility in operational logistics.
The Finance Bill had proposed harsher penalties and strict timelines for the clearance, warehousing, and removal of goods post-unloading or after filing declarations. However, through the Act, these timelines have now been relaxed to support smoother customs processing.
Furthermore, in a relief for importers contesting duty recoveries, the requirement to furnish a pay order or bank guarantee equal to 50% of the recoverable amount has been eased. The Finance Act reduces this threshold to 25% of the principal amount only, easing the financial burden on litigants.
Lastly, a proposal to allow the sale or auction of goods through authorized agents was withdrawn. Such sales must now strictly be conducted via public auction, ensuring transparency in disposal under customs laws.
These revisions signal a progressive step in modernizing Pakistan’s customs landscape under the 2025 Finance Act.