Importers clearing goods through Pakistan Customs should be fully aware of Section 81 of the Customs Act, 1969, which governs the provisional determination of customs duty and taxes. Updated for tax year 2026, this provision allows temporary clearance of consignments when final assessment cannot be completed immediately.
Understanding how provisional assessment works can help importers avoid delays, manage cash flow, and stay compliant with customs law.
What Is Provisional Determination Under Section 81?
Provisional determination applies when a customs officer is unable to verify the correctness of an assessment under Section 79 or 131 due to:
• Chemical or laboratory testing
• Requirement of further inquiry
• Incomplete or disputed documentation
In such cases, an officer not below the rank of Assistant Collector of Customs may allow provisional clearance of goods.
Key Conditions Importers Must Fulfil
To secure provisional clearance, the importer must:
• Pay the additional amount based on provisional assessment OR
• Furnish a bank guarantee or pay order from a scheduled bank
• Submit an indemnity bond covering the possible duty and tax difference
🚫 Important: Provisional assessment is not allowed if no differential amount is paid or secured.
When Provisional Determination Is NOT Allowed
Provisional determination of value is strictly prohibited when:
• A Valuation Ruling (VR) or Publication Valuation Ruling (PVR) issued under Section 25A is already in force
• This restriction applies even if review or revision proceedings are pending under Section 25D
Timeline for Final Determination (Critical for Importers)
⏳ 90 days from the date of provisional determination to finalize duty and taxes
🔁 Extension:
• Up to 30 additional days may be granted by the Collector of Customs or Director of Valuation
• Only in exceptional circumstances, with reasons recorded
⛔ Excluded from timeline:
• Periods covered by court stay orders
• Time taken due to adjournments requested by the importer
• Delays awaiting clarification from the Federal Board of Revenue (FBR)
What Happens After Final Determination?
Once the final assessment is completed:
• Paid or guaranteed amounts are adjusted
• Any shortfall must be paid immediately
• Any excess amount is refunded to the importer
⚠️ Deemed Final Rule:
If final determination is not completed within the prescribed time, and no new evidence exists, the provisional determination automatically becomes final.
Quick FAQ for Importers
Q: Can goods be released before final duty assessment?
✔️ Yes, through provisional determination under Section 81.
Q: Is a bank guarantee mandatory?
✔️ Only if the importer does not pay the differential amount upfront.
Q: What does “provisional assessment” mean legally?
✔️ It refers to the duties and taxes paid or secured through bank guarantee or pay order.
🔍 Bottom Line for Importers
Section 81 provides flexibility—but only with strict compliance. Importers should ensure proper documentation, timely guarantees, and close monitoring of timelines to avoid disputes, penalties, or cash blockages.
⚠️ Disclaimer: This article is published for general informational purposes only and does not constitute legal, tax, or customs advice. While efforts are made to ensure accuracy based on the Customs Act, 1969 as applicable for tax year 2026, laws, rules, and interpretations may change. Importers and stakeholders are advised to consult Pakistan Customs, FBR notifications, or qualified tax and customs professionals before taking any action based on this information.