FBR allows importers to file appeals within 90 days

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday allowed importers to file appeals before the board within 90 days period against the customs classification decisions of the Customs Classification Centre on imported items for resolving classification disputes on assessment of duties and taxes.

The FBR has amended the procedure for resolving customs classification disputes, reducing the prescribed decision-making period to 90 days for cases involving provisionally assessed goods and introducing a 30-day deadline for appeals against classification decisions.

The FBR has issued Customs General Order (CGO) No. 07 of 2026 to further amend CGO No. 12 of 2002, dated June 15, 2002, which governs the methodology for settlement of classification disputes.

According to the order by the FBR, the existing 120-day period for deciding fresh classification disputes will remain applicable generally, while cases involving goods provisionally assessed under Section 81 of the Customs Act, 1969, will be subject to a 90-day timeframe.

The amendment provides for the insertion of the 90-day period alongside the existing 120-day deadline in the relevant provisions of the earlier order. The revised timeline is scheduled to take effect from January 1, 2027.

The FBR has also introduced a new provision allowing any person aggrieved by a classification decision to file an appeal before the FBR within 30 days of the issuance of the relevant public notice.

The appeal will be filed under Rule 2 of the General Rules for Interpretation of the First Schedule to the Customs Act, 1969.

The latest changes follow earlier amendments to CGO No. 12 of 2002, including CGO No. 02 of 2025, which prescribed a procedure for resolving classification disputes through a dedicated Classification Centre and committee.

Under the existing framework, routine classification matters continue to be decided by the respective Customs Collectorates, while disputes may be referred to the Classification Centre established at the Collectorate of Customs Appraisement-East, Karachi, with the approval of the concerned Collector or Director.

The Classification Centre is responsible for examining disputes referred by Customs formations or traders, issuing classification rulings, maintaining a database of decisions and facilitating the exchange of classification-related information with the World Customs Organisation through the FBR.

The 2025 order had prescribed a 120-day period for deciding fresh classification disputes, with a provision for a further 30-day extension by the Chief Collector of Customs Appraisement-South, Karachi, subject to recorded reasons.

Separately, CGO No. 01 of 2026 revised the composition of the Classification Committee, providing for three Collectors from the South region to be notified by the Chief Collector of Customs (Appraisement-South).

The latest amendment introduces a specific timeline for disputes involving provisionally assessed goods and establishes an express appeal mechanism for persons aggrieved by classification decisions.—SOHAIL SARFRAZ