The Federal Board of Revenue (FBR) has taken a significant step towards streamlining the customs classification process by establishing a Classification Centre.
This initiative aims to address all pending customs classification disputes between importers and the customs department by August 31, 2025.
To facilitate this initiative, the FBR has issued an order amending Customs General Order No. 12 of 2002.
Amendments to Customs General Order No. 12 of 2002
This amendment provides a structured framework for the constitution of a committee or centre that will oversee the settlement of classification disputes regarding goods.
The Chief Collector of Customs Appraisement-South, Karachi, may grant an extension of up to 30 additional days, with reasons duly recorded.
For previously pending cases, the centre aims to resolve them within 120 days, ensuring that no dispute remains unresolved beyond August 31, 2025.
The Secretary to the Classification Committee will be responsible for submitting all pending cases for timely resolution.
- Compile and publish classification rulings annually to ensure consistency in trade practices.
- Maintain a comprehensive database containing all rulings, related documents, publications, and information.
- Facilitate communication with the World Customs Organization (WCO) through the Board to align with international best practices.
Structure of the Classification Committee
The Classification Centre will be managed by a Committee, which will oversee classification disputes and issue rulings. The committee consists of:
- Collector of Customs, Appraisement-East
- Collector of Customs, Appraisement-West
- Collector of Customs, SAPT, Karachi
The committee has the authority to co-opt officers from other Collectorates and Directorates, ensuring expert input in decision-making.
One representative from FPCCI (Federation of Pakistan Chambers of Commerce & Industry). A representative from the relevant trade association dealing with the goods under dispute.
Experts and specialists from relevant fields, including laboratory professionals, to provide expert opinions.
The committee may also conduct online meetings to facilitate decision-making and expedite dispute resolution.
Seek expert opinions from relevant Collectorates, Directorates, or Laboratories. Request additional information or documents from the trader if necessary. Resolve disputes through a majority decision, in case of disagreement among committee members.
