The Federal Board of Revenue (FBR) amended auction rules to allow customs officials to revise the reserve price of unsold auction goods after three consecutive auctions.
On Thursday, the FBR issued SRO.517(I)/2022 in this regard. The Collector or Director must ensure that the reserve price of the lots is revised after every three consecutive auctions if they are found undisposed of, according to the amended rules.
The reserve price shall include depreciation, duties and taxes, and other charges. According to the auction rules, as soon as the goods in the custody of any person reach the stage of being sold under the Act, or in the opinion of such person, are required to be sold by auction, that person shall bring them to the attention of the Deputy Collector or the Assistant Collector of the area concerned, giving a list of such goods.
The Collector shall, upon receipt of such information or on his own motion, pass orders directing the sale of goods by public auction, either departmentally or through an auctioneer, after giving due notice to the owner under relevant provisions of the Customs Act and shall cause the reserved price of the goods to be auctioned to be determined following the provisions of section 25 of the Act, and any duties or taxes which would have been payable on the date of fi.
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 a rate of one percent per month during the first year, and at a rate of two percent per month beginning in the second year, up to a maximum of fifty percent in the case of imported goods. In the case of seized goods, the period starts on the date of seizure.
Where the Reserve Price must be revised further downwards due to the physical condition of the goods, the Reserve Price shall be determined by a committee formed by the Collector and headed by an officer not lower than the rank of an Additional Collector, allowing for the extent of depreciation after taking into account the physical condition of the goods, auction rules added.