The Federal Board of Revenue (FBR) has delayed the implementation of a key budgetary measure introduced in the Finance Act 2025. The decision concerns the goods declaration facility that allows importers to file Goods Declarations (GDs) before the berthing of vessels or the crossover of vehicles at land borders—without the prior payment of duties and taxes.
This facility was designed to streamline the customs clearance process and facilitate early filing for traders and businesses operating through sea and land routes. However, through Statutory Regulatory Order (SRO) No. 1360(I)/2025, issued on Tuesday, the FBR has deferred the application of this new procedure until July 30, 2025.
According to the official SRO, the FBR exercised its powers under Section 79 of the Customs Act, 1969, to notify the delayed implementation date. The notification emphasizes that importers will be allowed to pay duties, taxes, and other applicable charges only after the assessment of their goods declaration is completed—provided the GD is filed before the vessel berths at port or before the vehicle crosses into Pakistan at a land border.
This marks a significant shift from existing customs procedures, where payment obligations are typically completed before filing the GD. The FBR’s latest move suggests a strategic approach to introduce reform gradually while allowing stakeholders, including customs officials and importers, sufficient time to adapt.
To ensure smooth operationalization of the postponed measure once implemented, the FBR has instructed the Chief Collector of Customs, Appraisement (South), Karachi to update the WeBOC system—Pakistan’s web-based customs clearance system. This update will align the technical processes with the amended legal provisions and will be key to operational efficiency.
The direction issued to the Appraisement Chief Collector is expected to ensure that all customs clearances, especially those handled in Karachi, Pakistan’s busiest port city, are aligned with the upcoming changes.
Another major development tied to this notification is the amendment of Section 79 of the Customs Act, 1969. The existing explanation under this section has been replaced. The new explanation authorizes the FBR to prescribe specific procedures and locations for assessing goods declarations filed at dry ports. This is an important development for importers who utilize dry ports located far from the main seaports, such as those in Lahore, Faisalabad, and Peshawar.
The clarification will allow the FBR to standardize and optimize assessment methods at inland customs points, ensuring efficiency while retaining control and oversight.
This delay offers temporary relief for importers who may have found it challenging to adapt to the procedural shift on short notice. More importantly, the ability to file GDs without prior tax and duty payments—once implemented—will enhance liquidity and flexibility for businesses. It also aligns with global best practices that prioritize seamless trade facilitation.
However, importers must remain vigilant. The FBR has clearly stated that the facility will only become available from the date specifically notified by the Board in the future. Until then, existing procedures remain in effect.
The measure was originally introduced in the Finance Act 2025 as part of a broader reform agenda aimed at improving customs processes, reducing port congestion, and enhancing trade efficiency. By allowing GD filing before vessel arrival or land entry, the government hoped to improve import planning and customs processing.
Despite the temporary delay, stakeholders remain hopeful that the facility will be rolled out smoothly later in the fiscal year, especially once WeBOC is fully updated and customs staff are trained accordingly.
