FBR Makes Physical Inspection Mandatory Before Customs Auctions

The Federal Board of Revenue (FBR) has amended the Customs Rules, 2001, making physical inspection of goods compulsory before customs auctions and introducing a formal appeal process for bidders who are aggrieved by certain orders.

The amendments were notified through S.R.O. 1630(I)/2026 under the relevant provisions of the Customs Act, 1969.

Under the revised Rule 61, goods listed for auction must be made available to prospective bidders for physical inspection before the scheduled auction. The inspection will take place according to a timeline approved by the concerned Collector.

The FBR has also amended Rule 73, requiring every successful bidder to submit an undertaking confirming that the goods being purchased through the bid were physically inspected before participation in the auction.

Under the prescribed undertaking, bidders must confirm that either they or their authorised representatives examined the goods, including their physical condition, before submitting their bids.

The undertaking further prevents successful bidders from later raising objections, claims or disputes, or seeking a revision of rates, compensation or cancellation of the auction on the grounds of alleged discrepancies in the goods.

Meanwhile, a new sub-rule has been introduced in Rule 75, allowing an aggrieved bidder to appeal against an order issued by the Collector under the relevant provisions.

The appeal must be filed before the concerned Chief Collector within 15 days from the date of the order.

The Chief Collector will be required to provide the appellant an opportunity to present their case and decide the appeal within 60 days of its filing.

The amendments also add the prescribed bidder undertaking as Appendix-A to Chapter V of the Customs Rules, establishing a formal record confirming that the goods were inspected before the auction.