ISLAMABAD: The Federal Board of Revenue (FBR) has introduced an electronic auction system to dispose of seized and confiscated goods, allowing registered bidders to participate online for a minimum registration fee of Rs25,000.

The new mechanism allows a 72-hour online bidding period, electronic payment of auction proceeds and digital release of goods to successful bidders. The rules were notified through SRO 1889 of 2026 on Thursday.

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. An authorised Inland Revenue officer may reject an application on valid grounds, which must be recorded in writing. The electronic platform will handle registration, goods listings, bidding, approvals, payments, deliveries and auction record-keeping.

New rules enable online bidding, electronic payments and online record-keeping

The rules apply to confiscated goods and seized goods cleared for disposal under an adjudication order. The custodian 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. Goods subject to a judicial stay cannot be auctioned until the order ceases to operate or is withdrawn.

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. It 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. The notification also allows the Chief Commissioner Inland Revenue to approve lower bids.

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. Goods will not be released until full payment has been verified.

Published in Dawn, October 23rd, 2026