FBR Sets Up Classification Centre to Resolve All Customs Disputes

The Federal Board of Revenue (FBR) has established a “Classification Centre” to resolve all pending customs classification disputes between importers and the customs department by August 31, 2025. The FBR issued an order on Tuesday to amend the Customs General Order No. 12 of 2002 for the constitution of a committee or centre for the purpose of settlement of disputes regarding the classification of goods. Under the new procedure, all fresh classification disputes shall be decided through classification rulings within 120 days of receipt of the dispute in the Classification Centre/Committee. The time period of 120 days shall be further extendable by 30 days by the Chief Collector of Customs Appraisement-South, Karachi, for reasons to be recorded. All previously pending cases shall preferably be decided within one hundred twenty days but not later than 31 August 2025. The Secretary to the Classification Committee shall be responsible for the timely submission of pending cases to the committee for decision. The routine classification matters shall continue to be decided by the respective Collectorates at their own level. Classification disputes may be referred to the Classification Centre already established at the Collectorate of Customs Appraisement-East, Karachi with the approval of the concerned Collector/Director. The Classification Centre shall perform the following functions: rg-L to examine and settle classification disputes referred either by Customs Collectorates/Directorates or other formations of Customs or by the traders to compile and print classification rulings on a yearly basis. It will also create and preserve a database containing all classification rulings and the related documents/publications/information; to maintain contacts and exchange information regarding classification matters with the World Customs Organization (WCO) through Board and capacity building of officers and staff in the field on HS classifications in co-ordination with the Customs Academy of Pakistan. The Classification Centre shall be run and managed by a classification committee which shall decide the classification disputes and issue classification rulings. The classification committee shall henceforth comprise three members- Collector of Customs, Appraisement-East, Collector of Customs Appraisement-West and Collector of Customs, SAPT, Karachi. The Additional Collector (Hqrs), Collectorate of Customs Appraisement-East, Karachi shall act as secretary to the classification committee. The committee may co-opt officers/officials of other Collectorates/Directorates. One representative from FPCCI and the concerned trade association dealing in the goods under dispute shall be included in the proceedings of the classification committee. The committee may also call the lab in charge, specialists and experts for expert opinion in determining the classification of an item. The committee shall meet at least twice a month but may hold as many meetings as required to dispose of the work. The committee may conduct online meetings whenever necessary. The committee shall examine each dispute and decide the classification in accordance with the Pakistan Customs  Tariff, WCO rulings, explanatory notes etc. On receipt of any request or reference regarding the classification of goods, the committee may seek an opinion from any Collectorate or Directorate of Customs or Laboratory as soon as possible. Thereafter, the case will be presented in the meeting of the classification committee where the trader or his authorized representative shall also be invited. The committee may also direct the trader to supply any other information or document as it may deem necessary before making its decision. In case of any disagreement among three members of the committee i.e. Collectors of Customs, Appraisement-East/West and SAPT, Karachi, a majority decision shall prevail. The classification rulings shall be widely circulated in the form of a Public Notice amongst the trade, customs formations and the Board. Any local classification committee, if working in any Collectorate/Directorate, shall stand dissolved and its pending cases shall be referred to the classification committee immediately by the concerned Collector/Director. The Collectorate of Customs Appraisement-East, Karachi shall provide logistic support. space and human resources, FBR added.