The Federal Board of Revenue (FBR) has amended the Customs Rules, 2001, introducing mandatory physical inspection of goods before customs auctions and establishing a formal appeal mechanism for bidders who are aggrieved by certain orders issued by the Collector. The changes are intended to formalize the inspection process and clarify the responsibilities of prospective and successful bidders participating in customs auctions.
The amendments were notified through S.R.O. 1630(I)/2026 dated September 18, 2026, under the relevant provisions of the Customs Act, 1969. The notification modifies several provisions of the Customs Rules, including Rules 61, 73 and 75, while also adding a prescribed undertaking for successful bidders as Appendix-A to Chapter V of the rules.
Under the amended Rule 61, goods offered for auction must be made available for physical inspection by prospective bidders before the scheduled auction date. The inspection is to take place according to a timeline approved by the concerned Collector. This makes the pre-auction inspection a formal part of the auction process rather than leaving the assessment of the goods solely to information provided through the auction process.
The amendment to Rule 73 places an additional requirement on successful bidders. Every successful bidder will have to submit an undertaking confirming that the goods for which the bid was submitted were physically inspected before participation in the auction. The undertaking must confirm that either the bidder or an authorised representative inspected the goods and assessed their physical condition before submitting the bid.
The prescribed undertaking also establishes the consequences of participating in the auction after inspection. By submitting the undertaking, bidders acknowledge that they had the opportunity to examine the goods before bidding. They will consequently be restricted from raising subsequent objections, claims or disputes based on alleged discrepancies concerning the goods that could have been identified during the inspection process.
The amended rules also address claims relating to the auction price and outcome. The undertaking prevents successful bidders from subsequently seeking revision of the rates, compensation or cancellation of the auction on the basis of alleged discrepancies in the goods. The provision therefore places greater responsibility on bidders to inspect and assess the condition of auctioned goods before deciding the amount they are prepared to offer.
At the same time, the FBR has introduced an appeal mechanism through an amendment to Rule 75. A bidder who is aggrieved by an order passed by the Collector under the relevant provisions of the customs rules will now be able to file an appeal before the concerned Chief Collector. The appeal must be filed within 15 days from the date of the order, establishing a specific timeframe for bidders seeking to challenge the decision.
The Chief Collector will be required to provide the appellant with an opportunity to be heard before deciding the matter. The amended rule further requires the Chief Collector to decide the appeal within 60 days from the date on which it is filed. This provides a defined review process for bidders while establishing a time limit for disposal of such appeals.
The amendments also formally incorporate the bidder undertaking into the Customs Rules through its inclusion as Appendix-A to Chapter V. The document will serve as a formal record confirming that the bidder or an authorised representative completed the required inspection before participating in the auction. With the new requirements, the revised framework establishes clearer procedures for inspection, bidder acknowledgements and appeals in customs auction proceedings.
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