The Federal Board of Revenue (FBR) has introduced an electronic auction system for the disposal of seized and confiscated goods. Registered bidders can now take part online after paying a one-time registration fee of at least Rs25,000. The rules were notified on Thursday through SRO 1889 of 2026.
The system provides for 72 hours of online bidding, electronic payment of auction proceeds and digital release of goods to successful bidders. A single electronic platform will manage registration, goods listings, bidding, approvals, payments, deliveries and auction records.
Any person holding a valid CNIC or NICOP can register as a bidder through the auction module. Each registered bidder will receive a unique identification number. An authorised Inland Revenue officer may reject an application, but must record the grounds in writing.
The rules cover confiscated goods and seized goods cleared for disposal under an adjudication order. The custodian must upload the inventory, photographs and relevant documents to the module and arrange physical inspections for prospective bidders.
Before starting an auction, the authorised officer will verify the legal status of the goods, including any judicial stay order, release or redemption options and disposal restrictions. Goods under a judicial stay cannot be auctioned until the order ceases to operate or is withdrawn.
A three-member valuation committee, comprising an additional commissioner, a deputy commissioner and an assistant commissioner of Inland Revenue, will recommend the reserve price for each lot.
Depending on the type of goods, it will base minimum prices on declared sales tax invoice values, printed retail prices, customs-assessed values or market quotations. It will also take into account depreciation, physical condition and remaining shelf life. If goods remain unsold after three consecutive auctions, the committee may reduce the reserve price by up to 10pc of the reference reserve price at a time.
Goods will remain open for bidding for 72 hours from receipt of the first bid. The system will automatically display the highest valid bid and keep an electronic record of every 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. Bids below the reserve price are not normally accepted. However, the Commissioner Inland Revenue may approve a lower offer, with reasons recorded, provided it is not less than 80pc of the reserve price. The Chief Commissioner Inland Revenue may also approve lower bids.
Successful bidders must deposit the full accepted amount, along with applicable taxes, duties and charges, within seven days of electronic notice of acceptance. Payment will be made through designated electronic channels using a payment slip identification number (PSID) or another method specified by the FBR. Goods will not be released until full payment is verified.