ISLAMABAD: The Supreme Court of Pakistan has ruled that any legally registered vehicle found transporting smuggled or non–duty-paid goods cannot be released on payment of a fine, declaring that FBR’s SRO 499(I)/2009 and its subsequent amendments make confiscation mandatory.
The judgment overturns earlier decisions by the Peshawar High Court and the Customs Appellate Tribunal, restoring complete confiscation of both the vehicle and the smuggled goods.
Authored by Justice Muhammad Shafi Siddiqui and concurred by Chief Justice Yahya Afridi and Justice Miangul Hassan Aurangzeb, the ruling states that once the FBR invokes its authority under Section 181 to prohibit release, customs officers and appellate bodies no longer have the discretion to allow release against a redemption fine.
The Court further highlighted that SRO 1619(I)/2024, issued on October 3, 2024, has tightened restrictions even more, completely prohibiting release of any vehicle used wholly or primarily for transporting smuggled goods.
The case involved an October 7, 2024 incident in Dera Ismail Khan, where a Bedford truck carrying foreign-made fabric and used tyres—without lawful import documents—was confiscated. Despite this, the Appellate Tribunal ordered its release against a 40% redemption fine, a decision upheld by the Peshawar High Court.
The Supreme Court held that both forums misinterpreted the legal framework and the binding SROs. It clarified that such vehicles are “liable to confiscation,” and following the 2009 SRO regime, this liability is no longer discretionary. The Court also noted that claims involving rented vehicles or public transport do not qualify for exemption.
According to the ruling, the purpose of the law is to combat smuggling by permanently confiscating vehicles repeatedly used for illegal transport, thereby dismantling the logistical backbone of smuggling networks.
