False declarations during import or export clearance are treated seriously under Pakistan’s customs laws. In 2026, Section 32 of the Customs Act, 1969 clearly outlines how Pakistan Customs detects, investigates, and recovers losses arising from false statements, errors, or misdeclarations—including those submitted through electronic systems.
This guide breaks down the law in simple terms for importers, exporters, clearing agents, and compliance professionals.
🔍 What Is Considered a “False Statement” Under Customs Law?
Under Section 32(1), a person commits an offence if they knowingly or intentionally:
• Submit false documents such as declarations, certificates, notices, or invoices to Customs
• Provide incorrect answers to questions asked by a customs officer under legal authority
• Upload false information electronically through the Pakistan Customs automated clearance system (WeBOC or similar platforms)
👉 The key factor is knowledge or reason to believe that the statement or document is false in a material particular.
⚠️ What Happens If Duties or Taxes Are Short-Paid?
If a false statement or collusion results in:
• Non-levy of duty or taxes
• Short-levy of duty
• Erroneous refund
Pakistan Customs can issue a show-cause notice within five years of the relevant date under Section 32(2), requiring the liable person to explain why the unpaid amount should not be recovered.
⏳ Errors Without Intent: Is There Any Relief?
Yes. Section 32(3) deals with cases of inadvertence, error, or misinterpretation, where no deliberate fraud is involved.
• Customs may issue a notice within three years
• No action will be taken if:
o The recoverable amount is less than Rs. 20,000
o The full short-paid amount is voluntarily paid before audit, inquiry, or investigation begins
✅ This provision encourages voluntary compliance and honest correction of mistakes.
📊 Audit Discoveries: Extended Recovery Period
Under Section 32(3A), if underpayment or erroneous refund is discovered through:
• Post-clearance audit
• Examination of importer/exporter accounts
• Any means other than initial clearance documents
Customs may issue a notice within five years, even if the case initially appeared routine.
🔔 However, if the recoverable amount is below Rs. 100,000, no proceedings will be initiated once the amount is deposited.
🧾 Final Determination by Customs Officer
According to Section 32(4):
• The concerned customs officer will review the reply and evidence
• The payable amount will be officially determined
• The final amount cannot exceed what was stated in the show-cause notice
• The determined amount becomes legally payable
📅 What Is the “Relevant Date”?
Section 32(5) defines the relevant date for calculating limitation periods:
• Date of clearance order (normal cases)
• Date of final assessment (provisional assessment under Section 81)
• Date of refund (erroneous refunds)
• Date of duty payment (other cases)
• Date of detection for electronic/self-assessment clearances
✅ Key Takeaways for Importers & Exporters (2026)
• False declarations—manual or electronic—are punishable offences
• Customs can recover short-paid duties for up to five years
• Voluntary payment before audit can prevent legal action
• Automated clearance does not reduce legal responsibility
• Accurate documentation is your best compliance shield
💡 Pro Tip
With increasing reliance on digital customs systems, even minor discrepancies can trigger audits. Regular internal reviews and timely corrections can save both money and legal trouble.
Disclaimer: This article is published for general informational and educational purposes only. It does not constitute legal, tax, or professional advice. While every effort has been made to ensure accuracy based on the Customs Act, 1969 (updated for tax year 2026), laws, rules, and interpretations may change. Readers are advised to consult Pakistan Customs, relevant statutory provisions, or a qualified customs or legal professional before taking any action based on this information. The publisher shall not be held liable for any loss or damage arising from reliance on this content.