FBR to automate penalties for overstayed cargo at ports

The Federal Board of Revenue has issued draft amendments to the Customs Rules, 2001, to introduce an automated penalty mechanism for overstayed cargo at ports. The amendments were notified through SRO 1081(I)/2026 and will take effect from August 31, 2026.

Under the proposed Overstayed Cargo Management Rules, 2026, the Customs Computerised System will automatically calculate penalties at the time of filing of the Goods Declaration or before the release of goods. The system will also issue an electronic show cause notice to the owner of the goods.

The owner or authorised clearing agent may either accept the penalty calculated by the system and pay it through the WeBOC payment module or contest it through the adjudication process.

If the penalty is accepted, the trader will be required to pay the amount before further processing of the Goods Declaration.

If the trader opts for adjudication, the case will be marked to the relevant Collector or an authorised officer, who must pass an order within five working days of the notice. The Chief Collector of Customs may extend this by another five working days for reasons recorded in writing.

If the adjudication authority vacates the show cause notice, the system will allow further release of the Goods Declaration. If the notice is not vacated, the penalty decided by the adjudicating officer will be recovered through the WeBOC payment module.

Any aggrieved person may file an appeal through the computerised system before the respective Chief Collector within 15 days of the order. The Chief Collector must decide the appeal within five working days.

The penalty rates under the rules will be prescribed through a notification issued by the Board after approval of the minister in charge.