Key Takeaways
- The Federal Board of Revenue (FBR) has introduced an electronic auction system for seized and confiscated goods.
- Registered bidders can participate online with a minimum registration fee of Rs25,000.
- The new system allows for 72-hour online bidding, electronic payment, and digital release of goods.
The Federal Board of Revenue (FBR) has launched an electronic auction system to dispose of seized and confiscated goods, marking a significant shift in the way such assets are auctioned in Pakistan.
Under the new rules, any person holding a valid CNIC or NICOP can register electronically as a bidder through the FBR’s auction module upon payment of a one-time registration fee of not less than Rs25,000.
Upon registration, each bidder will receive a unique identification number, enabling seamless participation in the online auction process.
The electronic platform will handle registration, goods listings, bidding, approvals, payments, deliveries, and auction record-keeping, streamlining the entire process.
The rules apply to confiscated goods and seized goods cleared for disposal under an adjudication order. Custodians must upload the inventory, photographs, and relevant documents to the electronic auction module and arrange physical inspections for prospective bidders.
Before initiating an auction, the authorised officer will verify the legal status of goods, including any judicial stay order, available release or redemption options, and restrictions on their disposal.
The reserve price for each lot will be fixed on the recommendation of a three-member valuation committee comprising an additional commissioner, deputy commissioner, and assistant commissioner of Inland Revenue.
The committee will set minimum prices based on declared sales tax invoice values, printed retail prices, customs-assessed values, or market quotations, depending on the type of goods. They will also consider depreciation, physical condition, and remaining shelf life.
If goods remain unsold in three consecutive auctions, the committee may reduce the reserve price by up to 10pc of the reference reserve price at a time.
Under the bidding mechanism, goods will remain available for online bidding for 72 hours from receipt of the first bid. The system will automatically display the highest valid bid and maintain an electronic record of each offer, including the bidder’s identification and submission time.
The authorised officer will process the highest offer within 72 hours of the close of bidding. Ordinarily, bids below the reserve price will not be accepted. However, the Commissioner Inland Revenue may approve a lower offer, subject to recorded reasons, provided it is not less than 80pc of the reserve price.
Successful bidders will be required to deposit the entire accepted bid amount, along with applicable taxes, duties, and charges, within seven days of electronic communication of acceptance. Payment will be made through designated electronic channels using a payment slip identification number (PSID) or another method specified by the FBR.
