Pakistan Customs provides mechanisms for abatement of duty on goods that are damaged, deteriorated, or short-shipped under Section 27 of the Customs Act, 1969 (updated for 2026).
This ensures fairness when the declared value of imported goods has diminished due to damage or loss before or during unloading.
📌 Section 27 – Abatement on Damaged or Deteriorated Goods
1. Reporting Damage Before Examination
• The owner of the goods must notify a Customs officer in writing before the examination.
• Notification must indicate that the value of goods has diminished due to damage or deterioration during transit or unloading.
• A Customs officer not below the rank of Assistant Collector may then appraise the goods.
2. Methods of Valuation
The owner may choose either method to determine the value of damaged goods:
1. Physical Examination:
o Officer of Customs appraises the goods based on inspection and physical examination.
2. Sale Method:
o Goods may be sold by public auction, tender, or any other agreed method.
o The gross sale proceeds are deemed the value of goods, inclusive of duties.
3. Short-Landing or Short-Shipment
• If goods are short-landed or short-shipped, the officer may allow a reduction in duty proportionate to the quantity of goods lost.
• This applies on first examination, provided the officer is satisfied about the bona fide nature of the short-landing or short-shipment.
⚡ Features for Businesses
✅ Damage Notification Template: Download a ready-to-use written notice for Customs.
✅ Duty Abatement Calculator: Estimate duty reduction for damaged or short-shipped goods.
✅ Valuation Option Guide: Compare physical inspection vs. auction/tender sale method.
✅ Checklist for Compliance: Ensure proper documentation and timely reporting.
🔍 Key Takeaways
• Abatement allows fair duty adjustment when goods lose value due to damage or loss.
• Advance notification to Customs is essential for claiming abatement.
• Owners can choose the valuation method that best suits their situation.
• Proper documentation and timely reporting reduce risk of disputes or penalties.
Disclaimer: This article is for informational purposes only and does not constitute legal or professional advice. For guidance on customs duty abatement, valuation, or compliance, consult a qualified customs or legal professional. Laws and regulations may change, and interpretations may vary.