Here are the recent amendments in the Customs Act ,1969 introduced through Finance Bill, 2026-27.
It is emphasized that these are proposed amendments which would require the approval of the Parliament and assent by the President of Islamic Republic of Pakistan: Customs Act, 1969
Note: The following sections reproduce the current text of the Customs Act, 1969 with the amendments proposed by the Finance Bill, 2026 incorporated. Only those sections that are amended or newly inserted are included.
Section 2. Definitions
(ssss) “surcharge” means an amount or charge required to be paid under sections 21A, 83, 86, 98 and 202A or any surcharge payable as such under this Act;
(ssssa) “State warehouse” means any place authorized by the Collector of Customs to store the detained, seized or confiscated goods, as the case may be.
(Finance Bill, 2026: new clause (ssssa) inserted after clause (ssss))
Section 19. Powers of the Federal Government to grant exemption from customs-duties
(5) Any notification issued under sub-section (1) after the commencement of the sub-section (4) shall continue to be in force till the thirtieth day of June, 2027, if not earlier rescinded by the Federal Government or the National Assembly.
(Finance Bill, 2026: in sub-section (5), in the second proviso, figure “2026” substituted with “2027”)
Section 32. Recovery of duties etc. not levied or short levied or erroneously refunded
(3) Where, by reason of any inadvertence, error or misconstruction, any duty, taxes or charge has not been levied or has been short-levied or has been erroneously refunded, the person liable to pay any amount on that account shall be served with a notice within three years of the relevant date requiring him to show cause why he should not pay the amount specified in the notice:
Provided that if the recoverable amount is less than twenty thousand rupees, the Customs authorities shall not initiate the aforesaid action:
Provided further that the aforesaid action shall also not be initiated in case full amount of short paid duty, taxes or other charges are paid voluntarily prior to initiation of audit, inquiry or investigation.
(3A) Notwithstanding anything contained in sub-section (3), where any duty, taxes or charge has not been levied or has been short-levied or has been erroneously refunded and this is discovered as a result of an audit or examination of an importer’s or exporter’s accounts or by any means other than an examination of the documents provided by the importer or exporter at the time the goods were imported or exported, the person liable to pay any amount on that account shall be served with a notice within five years of the relevant date requiring him to show cause why he should not pay the amount specified in the notice:
Provided that if the recoverable amount is less than one hundred thousand rupees, the Customs authorities shall not initiate the aforesaid action if he deposits the recoverable amount.
(Finance Bill, 2026: words “in a case” omitted from first proviso to sub-section (3) and from proviso to sub-section (3A))
Section 80. Checking of goods declaration by the Customs
(4) In case of the Customs Computerized System, goods may be examined, scanned and assessed only on the basis of computerized selectivity criteria:
Provided further that in case of clearance of goods declaration through green channel, the goods may be examined or scanned with the prior approval of the Collector of Customs.
(Finance Bill, 2026: after “examined”, comma and word “scanned” inserted; proviso expanded to include “or scanned”)
Section 82. Procedure in case of goods not cleared or warehoused or transshipped or exported or removed from the port after unloading or filing of declaration
(1) The owner of the goods shall be liable to such penalties as may be notified by the Board in the following cases, namely:—
(a) Goods declaration is not filed for home-consumption or warehousing or transshipment within twenty days of the arrival of goods at a customs station;
(b) For the goods declaration filed prior to berthing of the vessel, the goods are not removed from the customs station after payment of leviable duty and taxes, within five days of completion of assessment and berthing of the vessel;
(c) For the goods declaration filed after berthing of vessel, the goods are not removed from the customs station for home-consumption or warehousing or transshipment within five days of the clearance of the goods declaration; and
(d) The goods are not loaded on the conveyance for export within fifteen days of the entry in the port:
Provided that in unavoidable circumstances, the Collector of Customs may waive or reduce the penalty fixed under this section:
Provided further that the Board may notify the rules to regulate the implementation of above provisions, including the process of appeal against imposed penalties and the Customs stations, goods or class of goods, where the provisions of sub-section (1) shall not be applicable.
(2) Such goods may, after due notice to the owner, if his address could be ascertained, or after due notice to the carrier, shipping or customs agent, custodian of the goods, as the case may be, be sold in auction or taken into custody by Customs and removed from the port to a Customs warehouse for auction under the order of the Assistant Collector of Customs notwithstanding the fact that adjudication of the case under section 179, or an appeal under section 193, 194 or 196 as the case may be, or a proceeding is pending in any court:
Provided also that the Board may authorize any person, to auction any auctionable goods, in the manner as notified by the Board.
(Finance Bill, 2026: in sub-section (1), “Federal Government” substituted with “Board”; first proviso expanded to “waive or reduce” and new proviso added; in sub-section (2), new proviso added allowing Board to authorize auction)
Section 156. Punishment for offences
(1) The Table under sub-section (1) is amended as follows:
S.No.OffencePenaltyProsecutionSection to which offence has reference
7A(existing offence)Not exceeding ten million rupees(as existing)(as existing)
62Any person illegally takes any goods out of any warehouse without payment of duty (or replaces with other goods), or aids, assists or is otherwise concerned therein.Not exceeding Five Hundred Thousand RupeesImprisonment not exceeding 5 years or fine or bothChapter XI
62AIf any person is found to be involved or abetting in the removal, substitution, damage or otherwise tempering with any goods, whether or not confiscated, at any such place as authorized by the Collector as a State Warehouse.Such person shall be liable to a penalty not exceeding two times the value of the goods involved.Upon conviction by a Special Judge, shall further be liable to imprisonment for a period not exceeding five years, or fine or both.General
83If an officer of any authority who is duty bound under section 170 to deposit the impugned goods with customs, neglects so to do.Not exceeding Fifty Thousand Rupees—170
(Finance Bill, 2026: penalty against
S.No. 7A enhanced from Rs. 500,000 to Rs. 10,000,000; new
S.No. 62A inserted after
S.No. 62;
S.No. 83 entry substituted)
Section 157. Extent of confiscation
(2) Every conveyance of whatever kind used in the removal of any goods liable to confiscation under this Act shall also be liable to confiscation.
Explanation. The word “removal” includes, and shall be deemed to have always included, every act of carrying, transporting, depositing, harbouring, keeping, concealing, retailing, or any other act involving movement of smuggled goods.
(Finance Bill, 2026: Explanation added after sub-section (2))
Section 170. Procedure in respect of goods seized or detained by other authorities
170. Procedure in respect of goods seized or detained by other authorities. — Notwithstanding anything contained in any other law for the time being in force, when any goods liable to confiscation under this Act are detained or seized by any other authority on any violation, irrespective of any pending proceedings under the laws of that authority, the customs authorities upon confirmation that such goods are liable to confiscation shall intimate that authority in writing and that authority shall be bound to deposit the impugned goods with customs for further processing under this Act.
(Finance Bill, 2026: section 170 substituted)
Section 179. Power of adjudication
(1) Subject to sub-section (2), in cases involving confiscation of goods or recovery of duty and other taxes not levied, short levied or erroneously refunded, imposition of penalty or any other contravention under this Act or the rules made thereunder, the jurisdiction and powers of the officers of Customs in terms of amount of duties and other taxes involved, excluding the conveyance, shall be as follows, namely:—
(i) Collector — no limit (ii) Additional Collector — not exceeding five million rupees (iii) Deputy Collector — not exceeding two million rupees (iv) Omitted (v) Superintendent — not exceeding one hundred thousand rupees (vi) Principal Appraiser — not exceeding one hundred thousand rupees
(Existing pecuniary jurisdiction continues)
(2) The Board may, by notification in the official Gazette, fix or vary the jurisdiction and powers of any Officer of Customs or a class of officers.
(3) A Collector, an Additional Collector or a Deputy Collector shall decide the case within forty-five days of the issuance of show cause notice or within such extended period for which reason shall be recorded in writing provided that such extended period shall in no case exceed ninety days.
(4) The Board shall have the powers to regulate the system of adjudication including transfer of cases and extension of time-limit as deemed appropriate after reasons to be recorded in writing.
(5) Notwithstanding anything contained in this Act, or any other law for the time being in force and notwithstanding any decision or judgment of any forum, authority or court whether passed on or before the commencement of the Finance Act, 2006, the time for adjudication in all the cases pending as on first day of July, 2006, for whatsoever reasons, shall be deemed always to have been extended up to 31st day of December, 2006.
(6) Notwithstanding anything contained in this Act, or any other law for the time being in force, the Board may notify a procedure for faceless adjudication whereby adjudication proceedings shall be conducted without any face-to-face interaction between the adjudicating officer and the respondent. The virtual mode shall be in such manner as may be prescribed by the Board from time to time.
(Finance Bill, 2026: new sub-section (6) inserted)
Section 185A. Cognizance of offences by Special Judges
(1) Notwithstanding anything contained in this Act or any other law for the time being in force, a Special Judge may, within the limits of his jurisdiction, take cognizance of any offence punishable under this Act—
(a) upon a report in writing made by an officer of customs or by any other officer especially authorized in this behalf by the Federal Government; or
(b) upon receiving a complaint or information of facts constituting such offence made or communicated by any person; or
(c) upon his own knowledge acquired during any proceeding before him under this Act or under the Prevention of Smuggling Act, 1977.
(2) Upon the receipt of report under clause (a) of sub-section (1), the Special Judge shall proceed with the trial of the accused:
Provided that such cases shall be disposed of within six months of the receipt of report or within such extended period as the Special Judge may, for reasons to be recorded in writing, fix.
(3) Upon the receipt of a complaint or information under clause (b), or acquired in the manner referred to in clause (c) of sub-section (1), the Special Judge may, before issuing a summon or warrant for appearance of the person complained against, hold a preliminary inquiry for the purpose of ascertaining the truth or falsehood of the complaint, or direct any Magistrate or any officer of customs or any police officer to hold such inquiry and submit a report, and such Magistrate or officer shall proceed in accordance with law.
(6) Where a Special Judge during trial of an offence punishable under this Act, is satisfied that there is any reasonable grounds for believing that the accused has committed an illegal transfer of funds into or out of Pakistan, he may order the freezing of the assets of the accused, whether in his possession or in the possession of any other person on his behalf.
(Finance Bill, 2026: new sub-section (6) added after sub-section (5))
Section 196JJ. Independent case scrutiny committee
(1) Any Civil petition, reference, civil petition for leave to appeal or review petition before the High Court, the Federal Constitutional Court or the Supreme Court of Pakistan shall only be filed by the Collector or Director of Customs, or any officer of Customs not below the rank of Deputy Collector or Deputy Director authorized by the Collector or Director of Customs, in writing, subject to approval by an independent case scrutiny committee, as constituted by the Board under sub-section (3).
(2) The Board may constitute one or more such committees and assign them jurisdiction which shall exercise the powers and functions in a manner, and from the date, as may be notified by the Board.
(3) The independent case scrutiny committee shall comprise of the following Members, namely:—
(a) a retired judge of superior judiciary who shall also act as Chairman of the Committee;
(b) an advocate having not less than fifteen years of experience in customs and commercial litigation before the High Court or Supreme Court of Pakistan; and
(c) a serving or retired officer not below the rank of Director or Collector of Customs.
(4) The members shall receive such renumeration as may be prescribed by rules.
(5) Recommendations of the committee shall be binding upon the concerned Collector or Director of Customs.
(6) No suit, prosecution or other legal proceedings shall lie against the members of the committee in relation to the decisions made under this section.
(Finance Bill, 2026: new section 196JJ inserted after section 196J)
Section 215. Service of order, decision, etc.
Any order or decision passed or any summons or notice issued under this Act shall be served—
(a) by tendering the order, decision, summons or notice or sending it by registered post or the courier service or by any other mode of transmission subject to acknowledgement receipt to the person for whom it is intended or to his agent; or
(b) if the order, decision, summons or notice cannot be served in any manner provided in clause (a), by affixing it on the notice board of the custom-house; or
(c) in case of electronic orders, decisions, notices or summons, when these have been sent to the recipient from the Customs Computerized System; or
(d) in the manner prescribed for service of a summons under the Code of Civil Procedure, 1908 (Act V of 1908).
(Finance Bill, 2026: new clause (d) inserted after clause (c))
Schedules
- The amendment set out in the First Schedule to the Finance Bill, 2026 shall be made in the First Schedule to the Customs Act, 1969. - The Fifth Schedule to the Customs Act, 1969 shall be substituted in the manner provided for in the Second Schedule to the Finance Bill, 2026.