The Federal Board of Revenue (FBR) has amended auction rules to authorize the customs officials to revise the reserve price of the undisposed auction goods after every three consecutive auctions.
In this regard, the FBR has issued SRO.517(I)/2022 here on Thursday. According to the amended rules, the Collector or Director shall ensure that the reserve price of the lots is revised after every three consecutive auctions if found undisposed.
The reserve price shall consist of the depreciated value, duties and taxes, and other charges. Under the auction rules, as soon as the goods at any place in the custody of any person have reached the stage of being sold under the Act, or in the opinion of such person are required to be sold by auction, shall be brought to the notice of the Deputy Collector or the Assistant Collector of the area concerned by that person giving a list of such goods.
The Collector shall, on receipt of such information or on his own motion, pass orders directing the sale of goods, after giving due notice to the owner under relevant provisions of the Customs Act, by public auction either departmentally or through an auctioneer and shall cause the reserved price of the goods to be auctioned to be determined in accordance with the provisions of section 25 of the Act, and any duties or taxes which would have been payable on the date of fixation of the reserve price of such goods for auction thereof shall be added to this value.
Provided that depreciation in the value of goods, excluding vehicles (Chapter 87), construction machinery, and Iron/Steel Products, will be allowed after one month from the date of importation, at the rate of one percent per month during the first year, and at the rate of 2% per month during the 2nd year onwards, up to a maximum of fifty percent, in case of imported goods. In the case of seized goods, the period shall be reckoned from the date of seizure.
Where the Reserve Price is required to be further revised downwards, due to the physical condition of the goods, the Reserve Price shall be determined by a committee constituted by the Collector and headed by an officer, not below the rank of an Additional Collector, allowing extent of depreciation after taking into consideration, the physical condition of the goods, auction rules added.
