ISLAMABAD: The Federal Board of Revenue (FBR) has issued Customs General Order (CGO) No. 07 of 2026, amending CGO No. 12 of 2002 to streamline the resolution of customs classification disputes involving imported goods.
Under the revised procedure, disputes involving goods provisionally assessed under Section 81 of the Customs Act, 1969, will be decided within 90 days. The existing 120-day period will continue to apply to other fresh classification disputes.
The new 90-day timeline is scheduled to take effect from January 1, 2027. The amendment aims to facilitate the timely resolution of classification disputes that affect the assessment of customs duties and taxes on imported goods.
The FBR has also introduced an explicit appeal mechanism for persons aggrieved by decisions issued by the Customs Classification Centre. Under the new provision, an affected person may file an appeal before the FBR within 30 days of the issuance of the relevant public notice.
Appeals will be filed in accordance with Rule 2 of the General Rules for Interpretation of the First Schedule to the Customs Act, 1969.
The latest amendment builds on earlier changes to the customs classification dispute resolution framework, particularly CGO No. 02 of 2025, which established procedures for handling classification disputes through a dedicated Classification Centre and committee.
Under the existing system, routine customs classification matters are handled by the relevant Customs Collectorates. However, 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 examines disputes referred by Customs formations or traders, issues classification rulings, maintains a database of decisions and facilitates the exchange of customs classification information with the World Customs Organisation through the FBR.
The 2025 order prescribed a 120-day period for deciding fresh classification disputes, with a possible extension of 30 days by the Chief Collector of Customs Appraisement-South, Karachi, subject to the recording of 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).
With CGO No. 07 of 2026, the FBR has introduced a shorter decision-making period for disputes involving provisionally assessed goods and established a specific deadline for challenging classification decisions. The changes are expected to provide importers and other affected parties with a clearer procedural framework for resolving disputes over the classification of imported goods and the resulting customs duties and taxes.
