ISLAMABAD: The Federal Board of Revenue (FBR) has been legally empowered to declare any place in Pakistan as a customs station under the Customs Act, 1969, with the updated provisions applicable for tax year 2026 and onwards.
This authority is aimed at improving trade facilitation, strengthening enforcement, and modernising customs operations in line with changing trade and logistics needs across the country.
The power flows from Section 9 of the Customs Act, 1969, which provides the legal basis for designating customs ports, customs airports, land customs stations, approved trade routes, coastal trade ports, and customs houses through notifications published in the official Gazette. Under this provision, the FBR may notify specific locations and routes for customs purposes anywhere in Pakistan without requiring parliamentary approval.
Using this authority, the FBR can declare particular places as customs ports or customs airports for the clearance of imports, exports, or even specific categories of goods. It can also approve locations as land customs stations for goods entering or leaving Pakistan through land routes or inland waterways. In addition, the Board may notify specific routes through which goods may legally enter or exit Pakistan, or move to and from land customs stations and frontier points.
Section 9 further allows the FBR to approve ports for coastal trade, limiting such activity to notified customs ports within Pakistan. The law also empowers the Board to define what constitutes a customs house and to specify the geographical limits of its jurisdiction for customs enforcement and clearance activities.
These expanded powers are particularly significant for tax year 2026 as they reflect the government’s strategy to align customs administration with evolving trade patterns. The flexibility to declare customs stations at new or emerging trade hubs is expected to result in faster clearance of goods, improved monitoring of inland and border trade, and stronger control over smuggling and illegal movements. The provisions also support the development of new trade corridors, including CPEC routes, dry ports, and special economic zones, while enabling authorities to respond quickly to changing commercial needs.
In practice, the FBR exercises these powers through Gazette notifications, each of which specifies the location, purpose, applicable goods, approved routes, and jurisdictional limits. The authority applies nationwide and may be used to establish permanent customs stations as well as temporary or special-purpose arrangements for specific trade or enforcement requirements. The FBR may also restrict a declaration to certain classes of goods where necessary.
Under the law, the FBR can declare any location in Pakistan a customs station through an administrative notification, and these provisions are fully applicable for tax year 2026 and future years. The declarations do not require approval from parliament and may be tailored to specific goods or trade activities.
Overall, the authority granted under Section 9 of the Customs Act, 1969 significantly strengthens the FBR’s capacity to regulate trade, enhance compliance, and facilitate legitimate commerce. By allowing customs stations to be declared anywhere in the country, the law provides the flexibility needed to meet modern trade and logistics demands in Pakistan.
