Karachi, June 17, 2025 – The Finance Bill 2025 has introduced significant amendments to the Customs Act, 1969, aimed at curbing unnecessary delays in the auction process of goods, particularly through the misuse of court stay orders.
Under the proposed changes in the Finance Bill, a new provision will prohibit courts from granting stay orders on auctions of goods unless the petitioner provides a pay order or bank guarantee amounting to at least 50% of the reserve price. This amendment seeks to deter frivolous litigation and ensure timely disposal of goods through auction.
Currently, the Customs Act, 1969 outlines procedures for the sale of non-confiscated goods, which includes selling items through public auction, tender, private offer, or any other method approved by the Collector, with the owner’s consent after due notice. The Finance Bill 2025 now proposes to expand these modes by including “authorized agents” as an additional method for carrying out such sales.
Furthermore, Section 169 of the Customs Act deals with the handling of seized goods that are liable to confiscation. As per current law, the Collector of Customs has the authority under Section 201 to order the sale of such goods even while adjudication or court proceedings are ongoing, with the proceeds held in deposit until a final decision is reached.
The Finance Bill recommends inserting a new sub-section (6) into Section 169, mandating that any party seeking a stay on the auction of confiscated goods must deposit a pay order or bank guarantee for no less than 50% of the reserve price with the Nazir of the court. This move is designed to maintain the integrity of the auction process and reduce deliberate procedural hurdles.
By incorporating these changes, the Finance Bill 2025 aims to make the customs auction process more efficient, discourage exploitation of legal mechanisms to delay sales, and improve revenue collection. These provisions also reflect the government’s broader reform agenda to streamline customs operations and ensure smoother functioning of the judicial and administrative framework.