ISLAMABAD: The Federal Board of Revenue (FBR) has set up a new “Classification Centre” to address and resolve all pending customs classification disputes between importers and the customs department by August 31, 2025. This move follows the FBR’s directive on Tuesday to amend Customs General Order No. 12 of 2002, establishing a committee to oversee the settlement of such disputes.
Under the new procedure, all new classification disputes will be decided through classification rulings within 120 days from the date the dispute is received at the Classification Centre or Committee. This period may be extended by an additional 30 days by the Chief Collector of Customs Appraisement-South, Karachi, with a justification.
The FBR has also set a goal to resolve all previously pending classification cases by August 31, 2025, with a focus on making timely decisions. The Secretary of the Classification Committee will be responsible for ensuring the proper submission of pending cases for resolution.
Routine classification matters will continue to be handled by the relevant Collectorates, but disputes may be referred to the Classification Centre at the Collectorate of Customs Appraisement-East, Karachi, upon the approval of the relevant Collector or Director.
The Classification Centre is tasked with resolving disputes referred by Customs Collectorates/Directorates, traders, and other Customs entities. It will also be responsible for compiling and publishing classification rulings annually, maintaining a database of rulings, and collaborating with the World Customs Organization (WCO) on classification matters. In addition, the Centre will assist in building capacity among Customs officers and staff through coordination with the Customs Academy of Pakistan.
The Classification Committee, which will manage the Classification Centre, will include three members: the Collectors of Customs Appraisement-East, Appraisement-West, and SAPT, Karachi. The Additional Collector (Hqrs) at the Collectorate of Customs Appraisement-East will serve as the secretary of the committee. Representatives from the FPCCI and relevant trade associations will also participate in the proceedings.
The committee will hold regular meetings, at least twice a month, and can convene additional meetings as needed. The committee may also conduct online meetings when necessary. It will review each dispute based on the Pakistan Customs Tariff, WCO rulings, explanatory notes, and other relevant documents.
If required, the committee may seek expert opinions from lab specialists or officials from other Customs departments to determine the proper classification. If disagreements arise between committee members, a majority decision will prevail.
Once a decision is made, classification rulings will be circulated widely through a Public Notice to customs authorities and the trade community. Any local classification committees operating in Collectorates or Directorates will be dissolved, and their pending cases will be referred to the central Classification Committee.
The Collectorate of Customs Appraisement-East, Karachi, will provide logistical support, space, and human resources to ensure the smooth operation of the new Centre.
