Under Section 19 of the Customs Act, 1969, as updated for tax year 2026, the Federal Government of Pakistan has wide-ranging powers to exempt goods from customs duties and to remit fines and penalties in exceptional circumstances.
This provision allows the government to respond quickly to economic, security, and humanitarian needs while maintaining parliamentary oversight.
What Is Section 19 of the Customs Act, 1969?
Section 19 grants the Federal Government general power to exempt customs duties through a notification published in the official Gazette, subject to conditions it deems appropriate.
The power applies to:
• Imports
• Exports
• Specific ports, stations, or geographic areas
When Can the Government Exempt Customs Duties?
Situations Covered Under Section 19(1)
The Federal Government may grant exemptions when immediate action is required for:
1️⃣ National Security
• Emergency imports or exports essential for defense or internal security
2️⃣ Natural Disasters
• Relief goods during floods, earthquakes, or other calamities
3️⃣ National Food Security Emergencies
• Imports of essential food items during shortages or crises
4️⃣ Protection of National Economic Interests
• Situations arising from abnormal fluctuations in international commodity prices
5️⃣ Implementation of International Agreements
• Bilateral or multilateral trade and financial agreements
• Commitments with international financial institutions
6️⃣ Foreign or International Financial Institutions
• Institutions operating under:
o Memorandums of Understanding (MoUs)
o Agreements with the Government of Pakistan
What Can Be Exempted or Remitted?
Under Section 19(1), the government may:
✔ Exempt goods from whole or part of customs duties
✔ Apply exemption to specific ports or areas
✔ Remit fines, penalties, charges, or recoverable amounts under the Customs Act
When Does an Exemption Notification Take Effect?
Immediate Effect Rule
Under Section 19(2):
• A notification is effective from the date specified in it
• Even if the official Gazette is published later
📌 This ensures quick relief during emergencies.
No Implied or Promised Exemptions Allowed
Critical Legal Safeguard – Section 19(3)
❌ No exemption or refund is allowed unless:
• There is an express Gazette notification
📌 This applies notwithstanding:
• Any other law
• Court decisions
• Government letters or promises
• The doctrine of promissory estoppel
📌 Only officially notified exemptions are legally valid.
Parliamentary Oversight Mechanism
Role of the National Assembly
• All notifications issued under Section 19 must be:
o Placed before the National Assembly during the financial year
📌 Ensures transparency and legislative oversight.
Validity Period of Exemption Notifications
Sunset Clause Explained
• Notifications issued after the Finance Act, 2015:
o Automatically expire at the end of the financial year, unless rescinded earlier
Special Continuation Rule
• Notifications issued on or after July 1, 2016:
o Remain valid up to June 30, 2026
o If placed before the National Assembly and not rescinded
Snapshot: Section 19 at a Glance
| Feature | Explanation |
| Governing Law | Section 19, Customs Act 1969 |
| Authority | Federal Government |
| Method | Gazette notification |
| Grounds | Security, disaster, food, economy, agreements |
| Scope | Imports, exports, ports, areas |
| Effective Date | As specified in notification |
| Implied Exemptions | Not allowed |
| Parliamentary Review | Mandatory |
| Validity | Till June 30, 2026 (if applicable) |
Why Section 19 Matters in 2026
✔ Enables swift government response in emergencies
✔ Protects national economic and food security
✔ Prevents misuse of informal exemptions
✔ Ensures accountability through Parliament
✔ Provides certainty to importers and exporters
Frequently Asked Questions (FAQs)
Can customs duty be exempted through a letter or promise?
No. Only a Gazette notification grants legal exemption.
Can fines and penalties also be waived?
Yes. Section 19 allows remission of fines, penalties, and other recoverable amounts.
Do exemptions apply automatically forever?
No. Most exemptions expire at the end of the financial year, unless lawfully continued.
Conclusion
Section 19 of the Customs Act, 1969, applicable for tax year 2026, provides the Federal Government with powerful but controlled authority to exempt customs duties in exceptional circumstances. The provision balances flexibility, legal certainty, and parliamentary oversight, ensuring exemptions serve national interests rather than discretionary favors.
Disclaimer: This article is for general information purposes only and does not constitute legal or tax advice. Readers are advised to consult the Customs Act, 1969, official notifications, or a qualified tax professional for case-specific guidance.