Importers bringing goods into Pakistan for direct local use or sale must comply with the customs clearance procedure for home consumption as laid down in Section 83 of the Customs Act, 1969, updated for tax year 2026.
Understanding this process helps importers avoid penalties, prevent clearance delays, and ensure smooth release of consignments from customs stations.
What Is “Clearance for Home Consumption”?
Clearance for home consumption means the final release of imported goods into Pakistan’s domestic market after:
• Assessment of goods under Section 80 or Section 81
• Payment of applicable import duty, taxes, and other charges
• Confirmation that the goods are not prohibited or restricted
Once cleared, the goods can be freely used, sold, or distributed within Pakistan.
Step-by-Step Procedure Under Section 83
✅ Step 1: Filing Goods Declaration
The importer files a Goods Declaration (GD) and seeks assessment under:
• Section 80 (final assessment), or
• Section 81 (provisional assessment)
✅ Step 2: Payment of Duty and Taxes
After assessment, the importer must pay:
• Import duty
• Sales tax, income tax, and other levies (if applicable)
💻 At customs stations with the Customs Computerized System (WeBOC), clearance is processed electronically after payment.
✅ Step 3: Customs Satisfaction & Clearance Order
The appropriate customs officer will issue a clearance order once satisfied that:
• Import is not prohibited
• No violation of import conditions or restrictions exists
📄 In automated stations, the system generates clearance documents automatically.
⚠️ Late Payment Penalty Importers Must Note
If the importer fails to pay duty and taxes within 10 days of assessment under Section 80 or 81:
• A surcharge becomes payable
• Rate: KIBOR + 3%
• Applicable on import duty and other charges
🔔 This surcharge can significantly increase landed cost if payments are delayed.
Provisional Release of Goods – Section 83B Explained
Section 83B offers relief when a customs offence is detected, but:
• Goods are not liable to outright confiscation, and
• Goods are not required as evidence
Conditions for Provisional Release:
• Written request by the owner
• Payment of applicable duty, taxes, and charges
• Submission of bank guarantee or pay order covering potential:
o Penalty
o Fine
Approval is granted by the Collector of Customs.
Quick FAQs for Importers
Q: Can goods be cleared without manual approval?
✔️ Yes, at computerized customs stations after payment via system-generated clearance.
Q: What happens if duty is not paid within 10 days?
✔️ Surcharge at KIBOR + 3% becomes applicable.
Q: Is provisional release same as home consumption clearance?
❌ No. Provisional release applies only when an offence is detected under Section 83B.
🔍 Key Takeaway for Importers
Timely payment, correct declarations, and understanding Sections 83 and 83B are essential for smooth home consumption clearance. Delays can trigger surcharges, while compliance ensures faster system-based release.
⚠️ Disclaimer: This article is intended for general informational purposes only and does not constitute legal, tax, or customs advice. While the content reflects provisions of the Customs Act, 1969 as applicable for tax year 2026, laws, procedures, and interpretations may change. Importers are advised to consult Pakistan Customs, FBR notifications, or qualified customs and tax professionals before making decisions based on this information.