Finance Bill 2026 introduces state warehouses to strengthen custody and security of detained and confiscated goods, with strict penalties for tampering.
ISLAMABAD: The federal government, through the Pakistan Budget 2026-27, has proposed the introduction of a “State Warehouse” system to improve the custody and management of detained, seized and confiscated goods under customs laws.
According to the Finance Bill 2026, a state warehouse will be a location authorized by the Collector of Customs for storing goods that have been detained, seized or confiscated. The proposal aims to strengthen controls over such goods and ensure their secure handling.
An analysis by A.F. Ferguson & Co highlighted that the new mechanism is intended to modernize the existing system and enhance transparency in the storage of seized items.
Under the current framework, confiscated or detained goods are required to be deposited at the customs house nearest to the place of seizure. In cases where no customs house is conveniently located, the goods are kept at another place designated by the Collector.
The proposed state warehouse concept seeks to provide a more structured and secure arrangement for maintaining custody of these goods. Authorities believe the initiative will help reduce risks associated with improper storage and improve accountability in customs operations.
The Finance Bill 2026 also introduces stringent penalties to safeguard goods stored in state warehouses. Any individual found involved in, or assisting with, the removal, substitution, damage or tampering of goods kept in such facilities could face severe legal consequences.
Under the proposed amendments, violators may be subject to a penalty of up to twice the value of the goods involved. In addition, upon conviction by a Special Judge, the accused may face imprisonment for up to five years, a monetary fine, or both.
The government’s proposal reflects broader efforts to strengthen customs enforcement and improve the integrity of procedures governing seized and confiscated goods across the country.
