Regarding addition of new Chapter in Customs Rules 2001 - Independent Case Scrutiny Committee Rules

Government of Pakistan Revenue Division Federal Board of Revenue it ide -ft Islamabad, the 19th August. 2026. NOTIFICATION S.R.O./Z//3 (l)/2026.- In exercise of the powers conferred by section 219 of the Customs Act. 1969 (IV of 1969). the Federal Board of Revenue is pleased to direct that the following lurthei amendment shall be made in the Customs Rules. 2001. which, as required under sub-section (3A) of the said section, were previously published vide Notification No.S.R.O. 1141(I)/2026. dated the 22nd July, 2026. namely:- In the aforesaid rules, after Chapter XI IX. the following new chapter shall be added. namely: - “Chapter -L Independent C?ase Scrutiny Committee Rules 1242. Short title and commencement. - (I) These rules shall be called the Federal Board of Revenue Independent Case Scrutiny Committee (Customs) Rules. 2026. (2) They shall come into force at once. 1243. Definitions. - In these rules, unless there is anything repugnant in the subject or context. - (a) “Chairperson" means the head of the Independent Case Scrutiny Committee:2- (b) "committee" means any of’ the independent case scrutiny committees constituted under these rules for specified territorial jurisdiction: (c) "petition" means a petition to the Supreme Court under Article 183(3) of the Constitution of' the Islamic Republic of Pakistan or the Federal Constitutional Court: (d) "reference" means a reference to the High Court under section 196 of the Customs Act. 1969 (IV of 1969); (e) “Secretary" means an officer of Pakistan Customs Service nomimated by the Board for the purposes of the committee: and (fi "Serving or Retired Member of the Committee" means a serving or retired officer of Customs of Bs-20 or above. 1244. Constitution, Jurisdiction and Functions of the committees: I he Board through an order shall constitute the following committees with powers, functions and jurisdiction, namelv: - I

Com ni it tee N o. 1 ■ i uisd i c tiem Status Fun ctionsjin dJ S.No Member to timely examine each case before a i. Chairperson decision is made to tile a reference 1 A retired Judge of before the High Court. a petition the Supreme Court, before the Supreme Court or federal federal Constitutional j Constitutional Court: Court or any of the to review pending references and j High Courts of ii. petitions periodically to determine Pakistan whether continuation of litigation is An Advocate having warranted: a database ol settled j not less than fifteen iii. to maintain Member questions and relevant years' experience in legal | Customs, lax and precedents to guide future litigation decisions and ensure consistency; commercial litigation before the High Courts and iv. to identify systemic issues requiring ! and/or the Supreme legislative or administrative 1 Court of Pakistan interventions and recommend I A serving or retired appropriate measures to the Board. Member officer of Customs .Jurisdiction: References to be filed ( Service of Pakistan as before the High Court and CPLA to be | defined under these filed before the Supreme Court and | rules _ Federal Constitutional Court by: Customs 1. Coll ectorate of (Airports) Islamabad: Colleclorate of Customs (1OCO) ii. Islamabad: iii. Colleclorate of (Enforcement). Islamabad: Collectorale ot Customs. Gilgi'. iv. Baltisian; of Transit Trade. . v. Directorate Gilgit Baltisian; Directorate General. 1&R.M- j vi. Customs. Islamabad: Director of l&RM. Islamabad: vii. viii. Directorate ot PCA and Internal Audit. Islamabad; Directorate General and Diicctoi. ix. IPRE (North). Islamabad: DG NNDA. Islamabad: X. Customs Academy xi. of

Islamabad; xii. Directorate of National Nuclear Detection .Architecture (NND.X). Islamabad: xiii. Collectorale of Customs (Enforcement). Peshawar: xiv. Collectorate of Customs (Appraisement). Peshawar: xv. Collectorate of Customs (Appraisement). Kohat: XVI. Directorate ofl&RM. Peshawar XVII. Directorate of Valuation- i Customs, Peshawar: xviii Directorate of Transit Trade. Peshawar; xix. DNFBP, Peshawar: x\. Customs Enforcement School. Peshawar: xxi. Office of the Chief Collector , .A ppntisemen t-Noi l h. Pcsh;t wa r: Office of the Chief Collector | xx ii. Enforcement. Islamabad; and xxiii. Office of the Chief Collector Airports. Islamabad. |-...... -............... ‘............................................ -..... j Committee No. 2 (( entral) 'TNo? Member Status Functions____and_________Jurisdiction_ -... ....... j | A retired Judge of the Chairperson i. io timely examine each case|T " 1 Supreme Court, Federal before a decision is made to file J i i Constitutional Court or a reference before the High : any of the High Courts of Court, a petition before the i Paidsitin Supreme Court or Federal 2 An .Advocate having not Member Constitutional Court; i : less than fifteen years' ii. to review pending references and petitions periodically to determine ; experience in Customs, I fax and Commercial whether continuation of litigation litigation before the High is warranted: , i Coans and/orand/or the iii. to maintain a database of’ settled ! j Supreme CourtCourt of legal questionsquestions andand relevant precedents toto guideguide future i j Pakistan litigation decisions and ensure '•! 3 A serving or retired ! officer of Customs Member consistency; and Sen ice of Pakistan as iv. to identify systemic issues requiring legislative or defined under these rules administrative interventions and

recommend appropt iatc measures to the Board: Jurisdiction: References to be hied before High Court and CPI .A to be hied before the Supreme Court and Federal Constitutional Court by. Customs i. Collectorate of (Enforcement). I ahore: ii. Collectorate ol (Enforcement). Sargodha; iii. Collectorate of (Airports), Lahore; Customs iv. Collectorate of (Sambrial), Sialkoi: of Customs (IOCO). v. Collectorate Lahore: Collectorate of Customs. vi. Appraisemcnt-Faisalabad: of Customs vii. Collectorate Appra i semen t- West. Lahore: of Customs viii. Collectorate Appraisement-East. I.ahore: Collectorate of Customs ix. (Enforcement). Multan: Directorate of l&RM-Customs, x. Lahore; Directorate of PCA and fnicrnal xi. Audit (Central). Lahore: xii. Directorate of NNDA. Lahore: xiii. Director IPRE (Central). Lahore: xiv. Directorate of Valuation-Customs, Lahore: xv. Directorate of Transit Trade. Lahore: , xvi. Office of the Chief Collector Central. Punjab: and xvii. Collectorate of Customs Enforcement. Indus. --- ; ; Committee No. 3 (South-1) Functions and Jurisdiction f S.No. Member Status to timely examine each case before Chairperson i. A retired Judge ol the a decision is made to file a reference 1 Supreme Court, Federal before the High Court, a petition | Constitutional Court or before the Supreme Court or federalFederal > any of the High Courts of Pakistan __

Constitutional Court: An Advocate having not il, to review pending references and less than fifteen years’ Member petitions periodically to determine experience in ( ustoms. whether continuation ol litigation is fax and Commercial warranted: litigation before the High Courts and/orand/or the iii. to maintain a database of settled legal questions and relevant ;| Supreme CourtCourt of precedents to guide future litigation I | Pakistan_____________ decisions and ensure consistency { ; A serving or retired and officer of Customs Member iv. to identify systemic issues requiring Service of Pakistan as legislative or administrative defined under these rules interventions and recommend appropriate measures to the Board: Jurisdiction: References to be filed before High Court and CPLA to be filed before the Supreme Court and federal Constitutional Court by: i. Collectorate of Customs (Enforcement). Quetta: ii. Collectorate of Customs (E n fo rc em en t). G ad an i; ■ iii. Collectorate of Customs. Appraisement. Quetta: iv. Collectorate of Customs ( Appraisement). Gwadar: v. Collectorate of Customs (Appraisement). Taftan; VI. Directorate of I&RM-Customs. Quetta: : vii. The Director. Valuation-Customs, Quetta; I viii. Directorate of Transit Trade, Quetta: IX Directorate of Transit Trade. (iwadar; ('ustoins x. Collectorate Of (Ei 11 dree me n t). Karac hi; xi. Collectorate of Customs, (Enforcement). I lyderabad; XII. Collectorate of Customs (Airports), i Karachi: xiii. Directorate of NNDA, Quetta:

xiv. DNFBPs, Quetta: xv. Directorate of Post Clearance Audit and Internal .Audit Balochistan. Quetta: Office of the Chief Collector | xv i. Appraisement. IEilochistan. Committee No. 4 (South-Ii) -H Functions & .lurisiliclionS.No. Member Status to timely examine each case bclbre A retired Judge of the Chairperson i. I a decision is made to file a Supreme Court, Federal reference before the High ( oui’. a Constitutional Court or petition before the Supreme Court any of the High Courts of ! or Federal Constitutional Court: Pakistan_________ ______ to review pending references and An Advocate having not ii. petitions periodically to determine less than fifteen years' Member whether continuation of litigation is experience in Customs, warranted: fax and Commercial to maintain a database ot settled ■ litigation before the High iii. legal questions and relevant | Courts and/orand/or the precedents to guide future litigation Supreme CourtCourt ol decisions and ensure consistency. Pakistan ___ _______ and ~A serving or retired to identify systemic issues requirim: iv. officer of Customs Member legislative or administrative j Service of Pakistan as interventions and recommend I defined under these rules appropriate measures to the Board: .hisdiction: References to be tiled before High Court and CPI,A to be filed before | the Supreme Court and Fcdcml Constitutional Court by: Collectorate ot ( ustoms i. (Exports-PM BQ), Karachi: Collectorate ofCustoms ii. (Export). Karachi: Collectorate ofCustoms iii. (Apprai sement-East). K arachi Collectorate ofCustoms iv. (Appraisement-West). Karachi. Collectorate ofCustoms v. (Appraisemenl-SAP 1). Karachi; vi. Collectorate ot ( ustoms (Appraisement-PMBQ). Karachi. Col lectorate of ('ustoms vii.

(1OCO). Karachi: viii. Directorate of I&RM-Customs. Karachi: ix. Directorate of PCA and Internal Audit (South). Karachi: x. Directorate of Post Clearance Audit & Internal (East). Karachi: xi. Directorate of Post Clearance Audit & Internal Audit-South (Exports). Karachi: xii. Directorate of NN DA. Karachi; xiii. Directorate of 1PRE (South). Karachi: xiv. Directorate Genera! of Customs . Academy of Pakistan. Karachi: xv. Directorate General ol Valuation- Customs. Karachi: XVI. Directorate General of Transit Trade, Karachi: xvii. Directorate of Transit Trade (HQ). Karachi: xviii. Directorate ol Transit I’rade. Karachi: xix. Directorate of’ Reforms and Automation-(Tistoms, (R&A). Karachi: .xx. Office of the Chief Collector (Appraisement-South). Karachi: and xx i. Office of the Chief Collector Exports & l()CO(lk]r). Karachi. ’ 1245. Search Committee. - The Board, for the purpose of identifying suitable candidates, may constitute a search committee, the composition, terms ol reference and procedure whereof shall be determined by the Board. 1246. Procedure, Secretariat, Confidentiality, Scrutiny and Review. -(1) Proceedings and records placed before the committee shall be confidential. (2) The Chairperson or any Member having a conflict of interest in a matter shall recuse himself and such recusal shall be recorded in the minutes. In any such case, the Chairperson or Member from any other jurisdiction as a replacement shall be appointed by the Board. (3) The Secretary shall convene meetings, circulate agenda, maintain minutes and a case register or docket and communicate the committee's recommendations to the Member (Legal & Aceounting-(’iistoms) and the Chief Collector or Director General, concerned.

Member (Custonis-( )perations) « P««»" t- .............. ““V ihe Secretary shall immediately place such cases before the commdtee. accordingly. The Member (Legal & Accounting-Customs) may, for reasons to be recorded tn writing, transfer the jurisdiction of a case from one case scrutiny commtttec to another. 1247. Mandatory pre-filing scrutiny. - No reference before a High Court or petition before the Supreme Court or Federal Constitutional Court, after the tssuance o these u :;rbe filed unless the case has been placed before the concerned comm.ttee and the committee's recommendation is on record. 1248. Referral and Proceedings of the Committee. - (11 The entire process of refcrml Gf eases to the committee, proceedings and communication of tfs recommendatton, sha 1 U conducted through a dedicated portal by PS W or through such modtficattons as may be mac c < the existing WeBOC system for the said purpose. (2) Notwithstanding anything contained in sub-rule (L. until the sate pot a >s operationalized, referrals and proceedings may he made through manual mode tn such form an manner as the Member (Legal & Accounting-Customs) may deter,mne. (3) The referral shall contain all material particulars including the manner of Reference documents required, revenue implications involved, questions of law requtrmg sNNi t- •' keision where applicable, and the recommendation ol the Chiel C ollctu Lemed or Member (Customs-Operations, Member (Legal /Accounting-^ ustoms) where applicable, and all relevant documents shall be attached thereto. 049. Meetings, quorum and decision-making. - (1) The committee shall meet as often as necessary to msenarge .. Actions effectively. However, unless he ^kl to discharge its ending is zero at any given day. the committee shall convene on datly basts. The at any given proceedings of the committee may be in person or through video Imk. Chairperson a meeting shall be three Members, including the (2) The quorum for and the Advocate Member. The decision shall be by majority vote and recorded in the minutes with brief (3)■any dissenting opinion, if recorded by a Member, shall form part of the offtcal rcu rd. reasons: Where the committee recommends withdrawal 1250. Withdrawal or non-pursuance. ■ case the Secretary shall inform the referring authority acco : ttgl; o r n o n -pursuance of any Member (Legal and Accounting - Customs) and Member '. ustofps under intimation to the L. (Operations). record, brief, or * ■ The committee may call for any 1251. Calling for record. - fiekl formation through the Secretary. larification from any office or 1----- - (1) The committee shall endeavor to decide each case 1252. Timelines for decision.

placed before it within fifteen days of the receipt ot the case. p) In case the Committee fails to finalize its recommendations within fifteen days, the Chairperson under intimation to Member (Legal & Accounting-Customs), may extend this time for further ten days. (3) If (he committee does not render a decision within the prescribed timeline (including under sub-rule (2) above), the case shall be deemed to have been cleared for any extension Ulin., subject to compliance with all other applicable legal requirements and lite secretary shall record in writing that the prescribed period has been lapsed and inlunate the Member, or ( htel Collector or Director General concerned to proceed accordingly. 1253. Emergency and urgent references/pctitions. - (1) Wheie the period oi limitation'for filing a reference or petition is expiring within fifteen days, or where there ,s imminent and substantial revenue loss or for any other reason highlighted by the referring authority, requiring urgent intervention, the matter may be placed before the Chairperson as an emergency case. P) The Chairperson may, after prima facie satisfaction ol the urgency, approve a fast track decision before the expiry of the period of limitation for filing a reference or petition. (3) Any emergency approval granted under this rule shall be subject to post-lacto review by the full committee within thirty days. 1254. Publication and transparency. - (1) The committee shall cause to publish, on a yearly basis, anonymized summaries of its recommendations excluding confidential commercial information and taxpayer identifying details. (2) The published summaries shall include the questions of law considered, the decision criteria applied, and the recommendation made. searchable database of published decisions lor (3) The committee shall maintain a consistency in future decisions.reference by field formations and to ensure ; shall hold office for a term of one 1255. Tenure. - The Chairperson and the members continued fitness and satisfactoryyear, extendable for a further term of one year, on « performance, as may be decided by the Board. 1256. Resignation and removal. - (D The Chairperson or any member may resign, in writing, through an application addressed to the Board with thirty days* notice. The Chairperson or any member may be removed by the Board on grounds ol (2) corrupt practices, conflict of interest, misconduct, breach of confidentiality, or inability to perform functions, after providing an opportunity of being heard. 1257. Remuneration and allowances. - (1) The non-serving Members of each committee shall be paid Fees as follows: - (he Chairperson shall be entitled to a monthly Fee of twelve hundred thousand (a) rupees, and in addition thereto, a per case Fee of twenty-live thousand rupees ,n respect of which a recommendation is made, whethci in favour o 1 me oi

otherwise, subject to a maximum of twenty cases per month: lhe Advocate Member shall be entitled to a monthly Fee of eight hundred (b) thousand rupees, and in addition thereto, a per case Fee ol twelve thousand and five hundred rupees in respect of which a recommendation is made, whethei in favour of filing or otherwise, subject to a maximum of twenty cases per month: the Member who is retired from Customs service, shall be entitled to a monthly (c) Fee of eight hundred thousand rupees, and in addition thereto, a per case Fee ol twelve thousand and five hundred rupees in respect of which a recommendation is made, whether in favour of filing or otherwise, subject to a maximum of tvs enty cases per month: and the remuneration of the support staff shall be determined by lhe Board. (d) l he serving officer of Customs being member of the committee and the (2) Secretary, shall not be entitled to additional remuneration: however, they may be granted a cash reivard/honorarium for work undertaken for the purposes of the committee, under relevanl rules. (3) The Chairperson and all Members excluding serving Members of BS-20. shall be entitled to 1 A/D A for official travel as admissible to a grade 21 officer ol the bedcral Government. PS8 Annual reporting and performance evaluation. - (1.) lhe committee shall submit an annual report to the Board by the 31st of March each year, covering the preceding financial year and shall consist of, - reviewed, and recommendations made (to tile, not to tile. (a) the number of cases or to withdraw): the outcome of filed references and petitions (decided in favour, against. (b) pending, or settled): and factors contributing to favorable or unfavorable (c) analysis of success rale outcomes: revenue implications of decisions made pursuant to comm it tee (d) recommendations: identification of recurring legal issues and systemic problems requiring (e) legislative or administrative intervention; and management and Recommendations for improving litigation (f) enhancing the effectiveness of the committee. i C.No.2(7)L&P/20261 _ (ZulwrSfvahyn.OBL. Secretary (Law & Procedinv)