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Stop counterfeit imports at Pakistani borders. Learn FBR Customs IP recordation under Section 15 Customs Act 1969, seizure powers, and notices.
By Syed Asad Hussain Zaidi · 8 September 2026
Author Note / Last Updated: Updated September 2026 by Syed Asad Hussain Zaidi | Advocate High Court | Senior Corporate & IP Litigation Counsel. For multinational corporations, regional brand manufacturers, and domestic intellectual property owners, domestic market raids alone are rarely sufficient to halt brand piracy. Once counterfeit pharmaceuticals, automotive components, consumer electronics, fast-moving consumer goods (FMCG), or apparel infiltrate wholesale hubs such as Shah Alam Market in Lahore, Bolton Market in Karachi, or Raja Bazaar in Rawalpindi, enforcement costs multiply exponentially while tracing the illicit supply chain becomes nearly impossible. The most cost-effective and decisive enforcement mechanism against counterfeit merchandise is interdicting goods directly at the point of entry. Under Pakistani statutory law, the Federal Board of Revenue (FBR) Directorate General of Intellectual Property Rights (IPR) Enforcement and Pakistan Customs possess extensive powers to intercept, detain, seize, and destroy infringing imports before they clear customs bonded warehouses. However, Pakistan Customs does not routinely monitor every shipping container for trademark infringement unless a brand owner has proactively registered its intellectual property rights within the customs database or formally petitioned for border interdiction. This legal treatise provides an exhaustive guide for brand protection managers, general counsel, and corporate attorneys on recording registered trademarks with Pakistan Customs, invoking border enforcement under the Customs Act, 1969, navigating detention notices, and destroying pirated consignments. --- Statutory Framework for Border IP Enforcement in Pakistan Border enforcement of intellectual property rights operates at the intersection of international trade law, customs administration, and specialized IP statutes: A. Section 15 of the Customs Act, 1969: Absolute Prohibition Section 15 of the Customs Act, 1969 serves as the primary gateway for import restrictions. Subsection (d) explicitly prohibits the importation into Pakistan of: "goods made or produced beyond the limits of Pakistan, and having applied thereto any name or trade mark being, or purporting to be, or being a colourable imitation of, the name or trade mark of any manufacturer, dealer or trader in Pakistan, unless that name or trade mark is accompanied by a definite indication of the goods having been made or produced in a country outside Pakistan;" Furthermore, Section 15(f) prohibits the importation of goods that infringe copyrights, patents, industrial designs, or trademarks registered under the laws of Pakistan. Under Section 16 of the Act, the Federal Government possesses statutory authority to prohibit or restrict the import or export of any goods by notification in the official Gazette. B. Sections 94 to 98 of the Trade Marks Ordinance, 2001 While the Customs Act empowers customs officers, the Trade Marks Ordinance, 2001 (TMO 2001) establishes the procedural rights of the registered proprietor: Section 94 (Notice to Customs): The registered proprietor of a trademark may give notice in writing to the Collector of Customs that goods expected to arrive in Pakistan bear infringing marks, requesting that they be treated as prohibited goods under Section 15 of the Customs Act. Section 95 (Security & Indemnity): The Collector may require the applicant to furnish security or an indemnity bond to protect the Customs administration against any loss or damage incurred if the detention is later determined to be wrongful or unjustified. Section 96 & 97 (Detention & Inspection): Customs officers are empowered to detain the goods and allow the trademark owner or their authorized agent to inspect the detained consignment and extract representative test samples. Section 98 (Forfeiture and Destruction): Once infringement is legally established through customs adjudication or court decree, the goods are forfeited to the Federal Government and ordered for disposal, which generally mandates physical destruction. --- Institutional Architecture: The Directorate General of IPR (Enforcement) Recognizing that decentralized customs stations often lacked specialized expertise in detecting counterfeit marks, the Federal Board of Revenue established the Directorate General of Intellectual Property Rights (Enforcement) Customs headquartered in Islamabad, with operational regional directorates in Karachi and Lahore. Key Mandates of the IPR Directorate: Centralized Brand Recordation: Maintaining a specialized national repository of registered trademarks, copyrights, and patents. Risk Profiling on WeBOC (Web-Based One Customs): Integrating brand intelligence into Pakistan Customs' digital clearance system (WeBOC). When an import declaration matches high-risk criteria (e.g., suspicious origin ports, low declared unit values, unauthorized consignees), the computerized risk-management system (RMS) automatically flags the container for physical examination rather than green-channel clearance. Capacity Building & Training: Organizing technical identification workshops with brand owners to train customs appraisers, examiners, and preventive officers to distinguish authentic items from high-grade counterfeits. Inter-Agency Coordination: Coordinating with IPO-Pakistan, the Federal Investigation Agency (FIA) Anti-Corruption and Anti-Piracy Wing, and local law enforcement agencies. --- Step-by-Step Trademark Recordation Process with Pakistan Customs Brand recordation is not mandatory for a trademark owner to enjoy statutory protection in Pakistan, but without customs recordation, the probability of ex-officio border interdiction drops to near zero. Customs officers process hundreds of thousands of Twenty-Foot Equivalent Units (TEUs) annually across Karachi International Container Terminal (KICT), Pakistan International Container Terminal (PICT), Qasim International Container Terminal (QICT), and inland dry ports. Proactive recordation places your brand on the customs surveillance radar. Stage 1: Compiling the Legal Dossier An application for brand recordation must be submitted to the Director General, IPR (Enforcement), FBR. The petition must be drafted by an Advocate of the High Courts or an authorized customs consultant and accompanied by: Certified Copy of Registration Certificate: Stamped by the Registrar of Trade Marks, IPO-Pakistan (Form TM-R or official registration certificate under the TMO 2001). Pending trademark applications cannot form the basis of a formal recordation; the mark must be registered. Proof of Ownership / Power of Attorney: If filed through Pakistani legal counsel, a stamped and attested Power of Attorney or Form TM-48. For foreign corporate entities, the POA must be notarized and apostilled or legalized by the Pakistani Embassy in the jurisdiction of execution. Authorized Importer & Supply-Chain Whitelist: A complete schedule detailing legal entities, National Tax Numbers (NTNs), and Sales Tax Registration Numbers (STRNs) authorized to import genuine merchandise into Pakistan. Classification & HS Code Mapping: Exact Nice Classes (1 through 45) alongside corresponding 8-digit Pakistan Customs Tariff (PCT) / Harmonized System (HS) Codes under which the authentic goods are imported. Stage 2: Drafting the Brand Identification & Counterfeit Detection Guide The technical counterfeit detection manual is the most critical operational component of the dossier. Customs appraisers are customs tariff specialists, not brand experts. Your dossier must include a high-resolution visual comparison manual illustrating: Packaging and Graphic Standards: Color hex codes, micro-printing, font geometry, hologram placements, and barcode formats. Security Features: UV luminescent inks, serialized QR codes, tamper-evident security tape, or embedded RFID tags. Physical Product Quality: Weight discrepancies, mold marks, material density, weld seams, and substandard finishing common in illicit copies. Pricing Benchmarks: Declared customs value thresholds below which products are economically impossible to be authentic (e.g., if authentic wholesale unit value is $25, an import declared at $1.50 per unit is an obvious counterfeit). Primary Origin Countries: Common embarkation ports for counterfeits targeting Pakistan (e.g., specific ports in Southeast Asia or the Middle East). Stage 3: Institutional Approval and WeBOC Integration Upon technical review and legal satisfaction, the Directorate General of IPR issues a formal IPR Standing Order / Recordation Circular distributed across all Collectorates of Customs, including: Collectorate of Customs Appraisement (East / West / South), Karachi Collectorate of Customs Port Muhammad Bin Qasim, Karachi Collectorate of Customs Appraisement & Preventive, Lahore Collectorate of Customs, Islamabad / Rawalpindi (Airports and Dry Ports) Collectorate of Customs Appraisement & Preventive, Peshawar (Torkham border) Collectorate of Customs, Quetta (Chaman and Taftan borders) Collectorate of Customs, Gwadar Simultaneously, the Directorate's Risk Management officers enter the risk parameters into the WeBOC digital engine, establishing targeted alert filters based on declared HS codes, descriptions of goods, country of origin, and consignee tax profiles. --- The Two Enforcement Pathways: Ex-Officio Interdiction vs. Targeted Application Under Pakistani customs procedures, border interdictions occur via two distinct routes: | Enforcement Parameter | Route A: Ex-Officio Border Interdiction | Route B: Targeted Application (Sec. 94 TMO) | | :--- | :--- | :--- | | Trigger Mechanism | Routine physical examination or WeBOC automated risk alert. | Actionable intelligence provided directly by the brand owner. | | Pre-Condition | Brand previously recorded in the FBR IPR Customs Database. | Formal notice submitted to the Collector of Customs for a specific shipment. | | Shipment Data Needed | None required from the brand; relies on customs profiling. | Bill of Lading (B/L) number, container number, vessel name, estimated arrival date. | | Indemnity Bond | Requested after prima facie detention occurs. | Must be submitted upfront alongside the petition to inspect. | | Response Window | Rights holder must confirm counterfeit status within 48–72 hours. | Customs detains upon vessel discharge and summons rights holder immediately. | | Suitability | Ongoing, systematic protection against unknown counterfeiters. | High-value, specific intelligence operations against known pirate syndicates. | --- Procedural Protocol Following Shipment Detention When Pakistan Customs detains a suspicious container suspected of bearing counterfeit marks, a strict statutory and administrative protocol unfolds: Step 1: Issuance of Detention Memo and Notice to Rights Holder The Customs Appraising or Preventive Officer issues a formal Detention Memo under Section 17 or Section 168 of the Customs Act, halting customs clearance. A formal notice is promptly transmitted to the recorded trademark owner or their designated legal counsel, informing them that a consignment suspected of infringing their mark has arrived and setting a tight deadline (typically 48 to 72 hours) to confirm interest. Step 2: Submission of Indemnity Bond (Section 95 TMO 2001) Before authorizing physical inspection or opening the container, the Collector of Customs mandates the submission of an Indemnity Bond on non-judicial stamp paper (and in certain high-value cases, a bank guarantee or pay order). This bond indemnifies the Federal Government, the Collector of Customs, and port terminal operators against: Demurrage charges incurred during detention. Port terminal handling charges. Claims for damages lodged by the importer if the goods are ultimately determined to be authentic and wrongfully detained. Step 3: Joint Physical Inspection and Sample Drawing Customs schedules a formal Joint Inspection at the container examination yard (e.g., KICT Off-Dock CFS Yard or Port Qasim terminal). Present at the inspection: The Customs Appraising Officer / Assistant Collector. The clearing agent representing the importer (consignee). The trademark owner’s authorized legal counsel and technical brand expert. Representative samples are drawn, marked with official customs seals, and photographed. Both parties execute a formal Panchnama / Seizure Memo detailing the quantity, packaging conditions, container seals, and marks affixed. Step 4: Technical Verification Report Within 5 to 7 working days of the joint inspection, the trademark owner’s certified brand protection laboratory or authorized technical signatory must deliver a comprehensive Affidavit and Technical Verification Report. The report must definitively outline why the merchandise is counterfeit, cross-referencing: Absence of genuine micro-features, watermarks, or authorized manufacturing codes. Inferior material specifications and safety non-compliance. Lack of authorization from the registered proprietor. --- Customs Adjudication, Confiscation, and Destruction Once the Technical Verification Report confirms that the goods are counterfeit, the matter shifts from administrative inspection to quasi-judicial Customs Adjudication. A. Show-Cause Notice under Section 180 of the Customs Act The Assistant/Deputy Collector of Customs issues a formal Show-Cause Notice to the importer, charging them with: Violation of Section 15(d) and 15(f) of the Customs Act, 1969. Infringement of Section 94 of the Trade Marks Ordinance, 2001. Smuggling and illicit importation punishable under Section 156(1)(8) and 156(1)(14) of the Customs Act. The importer is granted an opportunity to submit a written defense and appear at a formal hearing. If the importer claims the goods are genuine, they bear the statutory burden of producing authorized distribution agreements, direct commercial invoices from the trademark owner, and valid letters of authorization. B. Order-in-Original (ONO) Upon conclusion of the hearing, the Adjudicating Officer issues an Order-in-Original (ONO). If infringement is proven, the ONO orders: Absolute Confiscation: Outright forfeiture of the entire consignment to the Federal Government. Imposition of Heavy Penalties: Monetary fines levied against the importing company, its directors, and potentially the clearing agent under Section 156(1) of the Customs Act. Criminal Prosecution Referral: Recommending the registration of an FIR (First Information Report) under the Pakistan Penal Code (PPC) and Customs Act for smuggling and trademark counterfeiting. C. The Absolute Prohibition on Auctioning Counterfeit Goods A critical legal pitfall that brand owners must guard against is the customs auction mechanism. Under standard customs procedures, abandoned or confiscated goods are regularly auctioned off to recover state revenues. CRITICAL LEGAL DIRECTIVE: Under Section 98 of the Trade Marks Ordinance, 2001, goods confiscated on grounds of trademark infringement CANNOT BE AUCTIONED OR RELEASED INTO COMMERCE, even if the counterfeit marks are obliterated or removed. The law recognizes that allowing counterfeit merchandise to enter the market—even without logos—undermines product safety and market integrity. Brand owners must ensure that the ONO explicitly directs destruction by incineration, shredding, or crushing under the direct supervision of a Joint Destruction Committee comprising customs officers and the brand owner's legal representatives. The cost of environmental destruction is typically borne by the rights holder or charged against the importer's seized security. --- Parallel Imports ("Grey Market Goods") vs. Counterfeits: The Pakistani Legal Reality A frequent dilemma faced by corporate brand owners in Pakistan is parallel imports—genuine, authentic products manufactured overseas by the trademark owner or its licensee, but imported into Pakistan by unauthorized third parties without the domestic exclusive distributor's consent. The Doctrine of Trademark Exhaustion in Pakistan Under Section 40 of the Trade Marks Ordinance, 2001, the registered proprietor’s trademark rights are exhausted once the goods have been put on the market anywhere in the world by the proprietor or with their express or implied consent (International Exhaustion), UNLESS: The condition of the goods has been changed or impaired after they were put on the market; or The unauthorized importer has altered, removed, or obscured the warranty labels, user manuals, or safety warnings required under Pakistani consumer protection regulations; or The importation creates a false representation that the importer is an authorized warranty provider or official subsidiary. Border Practice Summary: Pakistan Customs will not seize parallel imports under Section 15 simply because the domestic licensee complains of lost exclusivity. Customs border interdiction is reserved for counterfeit, pirated, or colourable imitations. To halt parallel imports, rights holders must pursue civil injunctions in the High Court or Special IP Tribunals based on trademark dilution, product impairment, or consumer deception. --- Strategic Checklist for Corporate Counsel & Brand Protection Directors To maximize border IP protection and eliminate counterfeit imports into Pakistan, enterprises should implement this operational checklist: [ ] Audit IP Portfolio: Ensure all core word marks, logos, device marks, and distinctive 3D packaging shapes are registered with IPO-Pakistan. (Customs recordation requires issued certificates, not mere application numbers). [ ] File Formal Recordation Dossier: Submit comprehensive recordation petitions to the Directorate General of IPR (Enforcement) Customs in Islamabad covering all relevant tariff headings. [ ] Submit Authorized Supply-Chain Rosters: Continuously update Customs with names, NTNs, and addresses of authorized importers and distributors. Notify Customs immediately when an agency or distribution agreement is terminated. [ ] Conduct Annual Customs Workshops: Sponsor technical counterfeit identification sessions for customs appraisers at Karachi Port, Port Qasim, and Lahore Dry Port. [ ] Maintain Standing Indemnity Arrangements: Authorize a qualified Pakistani IP law firm with a standing Power of Attorney and financial deposit authorization to execute Indemnity Bonds within 24 hours of receiving a detention notice. [ ] Enforce Destruction Mandates: Ensure every Order-in-Original explicitly orders the physical crushing or incineration of seized counterfeits, strictly prohibiting public auction. [ ] Harmonize Border Seizures with Civil & Criminal Remedies: Use customs seizure records to trace downstream retail outlets and file coordinated Section 118 TMO 2001 criminal complaints or High Court infringement lawsuits against domestic distribution networks. --- Conclusion: Securing Your Brand at Pakistan’s Borders Protecting intellectual property in Pakistan requires aggressive, forward-looking border defense. By leveraging the statutory powers of Section 15 of the Customs Act, 1969 and Section 94 of the Trade Marks Ordinance, 2001, brand owners can dismantle illicit supply lines before counterfeit products reach Pakistani consumers. Navigating customs recordation, technical counterfeit dossiers, and post-detention adjudication demands rigorous legal precision. For expert assistance in recording trademarks with Pakistan Customs, handling emergency border seizure notices, or conducting joint enforcement operations across Pakistani ports, contact our IP & Customs Enforcement Practice Group at TaxCalc.pk / Zaidi & Associates.