FBR Proposes Automated Penalties for Overstayed Port Cargo

The Federal Board of Revenue (FBR) has released draft amendments to the Customs Rules, 2001, proposing the introduction of an automated penalty framework for overstayed cargo at ports. The proposed amendments have been issued through SRO 1081(I)/2026 and are scheduled to come into force on August 31, 2026.

Under the proposed Overstayed Cargo Management Rules, 2026, the Customs Computerised System will automatically determine the applicable penalty when a Goods Declaration is filed or before the release of the goods, eliminating the need for manual calculation.

The system will simultaneously generate and electronically issue a show cause notice to the owner of the goods, notifying them of the penalty imposed for the cargo overstay.

Following issuance of the notice, the owner or an authorised customs clearing agent may either accept the penalty assessed by the system and make payment through the WeBOC payment module or challenge the penalty by opting for adjudication.

Where the penalty is accepted, payment must be made before any further processing of the Goods Declaration can proceed.

If the penalty is disputed, the matter will automatically be referred to the concerned Collector of Customs or an authorised adjudicating officer, who will be required to issue a decision within five working days from the date of the notice. The Chief Collector of Customs may extend this period by an additional five working days, provided the reasons are recorded in writing.

Where the adjudicating authority sets aside the show cause notice, the Customs Computerised System will permit the continued processing and release of the Goods Declaration. However, if the notice is upheld, the penalty determined by the adjudicating authority will be recovered electronically through the WeBOC payment system.

The proposed framework also provides a digital appeal mechanism. Any person aggrieved by the adjudication order may file an appeal through the Customs Computerised System before the respective Chief Collector within 15 days of the order. The Chief Collector will be required to decide the appeal within five working days.

The applicable penalty rates under the proposed rules will be notified separately by the FBR after obtaining approval from the minister responsible for customs affairs.