The Federal Board of Revenue (FBR) has launched an electronic auction system to dispose of seized and confiscated goods. Registered bidders may now participate online after paying a one-time registration fee of at least Rs25,000. The rules were issued on Thursday via SRO 1889 of 2026.
The platform allows 72 hours of online bidding, electronic payment of proceeds and digital release of items to winning bidders. A single electronic portal will handle registration, listings, bidding, approvals, payments, deliveries and auction records.
Anyone possessing a valid CNIC or NICOP can sign up as a bidder through the auction module and will be assigned a unique identification number. An authorised Inland Revenue officer may reject an application, but must document the reasons in writing.
The regulations cover both confiscated items and seized goods cleared for disposal under an adjudication order. Custodians must upload inventories, photographs and relevant documents to the module and arrange physical inspections for prospective bidders.
Before an auction begins, the authorised officer will verify the legal status of the goods, checking for any judicial stay order, release or redemption options and disposal restrictions. Items under a judicial stay cannot be auctioned until the order is lifted or withdrawn.
A three-member valuation committee, consisting of an additional commissioner, a deputy commissioner and an assistant commissioner of Inland Revenue, will recommend a reserve price for each lot.
Depending on the type of goods, the committee will set minimum prices based on declared sales-tax invoice values, printed retail prices, customs-assessed values or market quotations, also considering depreciation, condition and remaining shelf life. If an item remains unsold after three consecutive auctions, the committee may cut the reserve price by up to 10pc of the reference reserve price each time.
Items stay open for bidding for 72 hours from the receipt of the first bid. The system automatically shows the highest valid bid and records every offer, including the bidder's ID and submission time.
The authorised officer will process the highest offer within 72 hours after bidding closes. Bids below the reserve price are generally rejected, though the Commissioner Inland Revenue may approve a lower offer, recording reasons, provided it is not less than 80pc of the reserve price. The Chief Commissioner Inland Revenue may also approve lower bids.
Winning bidders must pay the full accepted amount, plus applicable taxes, duties and charges, within seven days of an electronic notice of acceptance. Payment is to be made through designated electronic channels using a payment slip identification number (PSID) or another method specified by the FBR. Goods will be released only after full payment is verified.
