The Federal Board of Revenue (FBR) has recently made an amendment to the Customs Act, 1969, which now includes wheat, sugar, and urea in the list of essential commodities.
The FBR issued SRO 495(I)/2023 dated April 14, 2023 to make amendment in the Customs Act, 1969. The FBR’s new amendment aims to combat the smuggling of these commodities, and to deter individuals from engaging in such illegal activities. The amended Section 156 of the Customs Act outlines the penalties for smuggling essential commodities, which includes rigorous imprisonment.
The penalties vary depending on the value of the goods that have been smuggled. If the value of the goods is between PKR 500,001 to 3,000,000, the individual involved will be subject to a penalty not exceeding the value of the goods, and may also face imprisonment for a term not exceeding two years.
For goods valued between PKR 3,000,001 to 5,000,000, the penalty may not exceed two times the value of the goods, and imprisonment may be for a term not exceeding three years.
For goods valued between PKR 5,000,001 to 7,500,000, the penalty may not exceed three times the value of the goods, and imprisonment may be for a term not exceeding five years. If the value of the goods is between PKR 7,500,001 to 10,000,000, the penalty may not exceed four times the value of the goods, and imprisonment may be for a term not exceeding ten years.
Finally, for goods valued at over PKR 10,000,000, the penalty may not exceed five times the value of the goods, and imprisonment may be for a term not exceeding fourteen years.
It is important to note that, for goods notified by the Federal Government in the official Gazette, the sentence of imprisonment may not be less than five years. Furthermore, the individual involved may also face the forfeiture of their moveable and immoveable assets and property, in accordance with section 187 of the Customs Act, 1969.
Overall, the FBR’s new amendment to the Customs Act is a significant step towards curbing the smuggling of essential commodities such as wheat, sugar, and urea. The inclusion of rigorous imprisonment as a penalty is expected to act as a strong deterrent for individuals involved in such illegal activities.
