ISLABABAD: The Federal Board of Revenue (FBR) on Wednesday introduced a detailed procedure for the auction of shipborne scrap, aiming to improve transparency and revenue collection at ports across Pakistan.
The new mechanism has been proposed through SRO 227(I)/2026, issued on February 3, 2026, which introduces draft amendments to the Customs Rules, 2001.
Under the proposed changes, the FBR has suggested the insertion of Rule 71A to regulate the auction of un-manifested board sweepings and shipborne scrap. These materials include iron or steel lashings scrap, wire rope scrap, broken pallets, wooden scrap, and other remnants generated during the transportation of containerized or loose cargo on ships.
According to the draft amendment, the auction process will be conducted by terminal operators or custodians, notwithstanding other provisions of the Customs Rules. However, the reserve price for each lot will be determined by Customs authorities to ensure fair valuation.
All auction proceeds, including applicable customs duties and taxes, must be deposited into the government treasury in line with Section 201 of the Customs Act, 1969, before delivery of the auctioned goods.
Additionally, terminal operators will be required to submit monthly reconciliation reports detailing auctioned lots and corresponding government deposits. The FBR stated that the new procedure is designed to strengthen oversight, curb revenue leakages, and streamline the handling of shipborne scrap at ports.
