ISLAMABAD: The Federal Board of Revenue (FBR) has amended the Baggage Rules 2006 to curb misuse of baggage exemptions for commercial purposes.
Under the revised rules, items classified as “commercial quantity” are now explicitly excluded from baggage allowances. The term “commercial quantity” refers to goods seemingly intended for trade or profit, with a total value exceeding $1,200, or in the case of mobile phones, more than one device beyond the passenger’s personal use.
The amendments also introduced stricter measures for handling goods brought in commercial quantities. These items will no longer be eligible for release upon payment of duty, taxes and redemption fines. Instead, they will be subject to confiscation, pending adjudication.
This latest notification builds on SRO 1649(I)/2024, which had earlier imposed penalties for bringing commercial quantities of goods under baggage rules. Previously, travellers faced a penalty of 30% of the goods’ declared value in addition to applicable duties and taxes. Now, under the updated policy, such goods will face outright confiscation, further deterring individuals from bypassing formal import procedures.
Historically, the Baggage Rules allowed Pakistani nationals, dual citizens, expatriates and individuals of Pakistani origin to bring in personal or household items duty-free. This concession facilitated travellers without adding financial burdens. However, concerns have grown over the misuse of these exemptions for commercial purposes, undermining the rules’ original intent.
The FBR’s move aims to restore the integrity of the baggage exemptions, ensuring they cater exclusively to genuine travelers. By closing loopholes, the government seeks to strike a balance between facilitating legitimate imports and regulating commercial activities within formal frameworks.
This policy shift reflects the FBR’s broader strategy to combat illicit trade, safeguard formal import channels, and enhance revenue collection. Once implemented, the revised baggage rules are expected to strengthen enforcement, align import practices with Pakistan’s economic policies, and uphold fiscal discipline.
