FBR Increases Customs Penalty to Rs. 10 Lac

The Federal Board of Revenue (FBR) has raised penalties for customs violations, with the maximum now reaching Rs. 1 million, as per a notification issued through SRO 136(I)/2026. This new schedule, effective from October 1, supersedes the one issued in July 2025.

For delayed declaration of goods, the penalty escalates to Rs. 25,000 for each of the first five days, and Rs. 50,000 for each subsequent day, up to a cap of Rs. 1 million. If a goods declaration is filed before a vessel's arrival, failure to remove the goods within five days of assessment and vessel arrival incurs a penalty of Rs. 5,000 per day, rising to Rs. 15,000 for each day beyond, capped at Rs. 1 million.

For goods declared after a vessel's arrival, the penalty for not removing them within five days of clearance is Rs. 10,000 daily, escalating to Rs. 20,000 per day, also capped at Rs. 1 million. Export shipments face a penalty of Rs. 15,000 for each of the initial five days, and Rs. 20,000 for each day thereafter, capped at Rs. 1 million, if not loaded onto the conveyance within 15 days of port entry.

The FBR clarified that these penalties will be subject to adjudication proceedings or voluntary payment, depending on the procedure under the Customs Act and related rules.