Islamabad, Mar 25, 2025: The Federal Board of Revenue (FBR) has set up a dedicated “Classification Centre” to address long-standing customs classification disputes between importers and the customs department.
The authority has set a deadline of August 31, 2025, to clear all pending cases, ensuring a streamlined process for resolving classification issues.
In an official order issued on Tuesday, the FBR revised the Customs General Order No. 12 of 2002, forming a specialized committee to oversee.
The settlement of disputes regarding the classification of imported goods. The move aims to enhance transparency and efficiency in customs procedures.
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If necessary, the Chief Collector of Customs Appraisement-South, Karachi, may extend this period by an additional 30 days, with justifications duly recorded.
For older pending disputes, the classification committee will aim to resolve them within 120 days, ensuring that no case remains unresolved beyond August 31, 2025.
The Secretary of the Classification Committee will be responsible for the timely submission of pending matters for swift decisions.
Role and Functions of the Classification Centre
The Classification Centre will be responsible for:
- Evaluating and resolving classification disputes brought by customs departments or traders.
- Compiling and publishing classification rulings annually.
- Establishing a comprehensive database of rulings and related documentation.
- Strengthening coordination with the World Customs Organization (WCO) to align with international classification standards.
- Conducting training sessions in collaboration with the Pakistan Customs Academy to enhance officers’ expertise in classification matters.
Composition of the Classification Committee
The Classification Centre will be managed by a committee consisting of three key officials:
- Collector of Customs, Appraisement-East
- Collector of Customs, Appraisement-West
- Collector of Customs, SAPT, Karachi
Additionally, the Additional Collector (Headquarters) from the Collectorate of Customs Appraisement-East will serve as the committee’s secretary.
The committee may also seek expert opinions from specialists, laboratories, and representatives from trade associations, ensuring fair and well-informed classification decisions.
Transparent and Efficient Decision-Making
The committee will hold meetings at least twice a month or more frequently if required to expedite the resolution of classification disputes.
Implementation and Logistics
To ensure smooth implementation, all previous classification committees operating in different Collectorates or Directorates will be dissolved, and their pending cases will be transferred to the new committee immediately.
The Collectorate of Customs Appraisement-East, Karachi, will provide necessary logistical support, office space, and human resources for the efficient functioning of the Classification Centre.
The FBR aims to provide clarity, reduce litigation, and ensure a fair classification system that benefits both the business community and the customs authorities.
