Finance Bill 2026 proposes a twentyfold increase in penalties to ensure terminal operators comply with Customs-issued delay and detention certificates.
ISLAMABAD: The Finance Bill, 2026 has proposed a substantial increase in penalties for terminal operators and other entities that fail to honour delay and detention certificates issued by Customs authorities, raising the fine from Rs500,000 to Rs10 million.
According to the proposed amendments to Section 156(1) of the Customs Act, the government aims to strengthen compliance and protect importers and exporters from unjustified charges arising from delays beyond their control.
The Finance Bill, 2026 states that any agency or individual, including port authorities managing or owning a customs port, customs airport, land customs station, or container freight station, that refuses to entertain a delay and detention certificate issued by a Customs officer will be subject to a significant financial penalty.
Under the existing provisions, the maximum penalty for such non-compliance stands at Rs500,000. However, the proposed legislation seeks to enhance the quantum of the penalty to Rs10 million, reflecting the government’s intention to ensure stricter adherence to Customs directives.
Delay and detention certificates are issued by Customs authorities in situations where importers or exporters incur additional storage, demurrage, or detention charges due to delays attributable to Customs procedures rather than the fault of traders. These certificates are intended to provide relief to the affected businesses by requiring terminal operators and related entities to waive or adjust such charges accordingly.
The proposed increase in penalties is expected to discourage terminal operators and port authorities from disregarding these certificates and to facilitate smoother trade operations at ports and border stations across the country.
Tax experts believe that the enhanced penalty regime could improve accountability within the logistics and port management sectors while offering greater protection to the trading community against unnecessary financial burdens.
The amendment forms part of a broader package of customs-related reforms introduced through the Finance Bill, 2026, aimed at improving trade facilitation, strengthening regulatory compliance, and promoting efficiency in customs administration.
The proposed changes will become effective following parliamentary approval of the Finance Bill, 2026 and subsequent enactment into law.
