Prevention of Smuggling Act, 1977

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THE PREVENTION OF SMUGGLING ACT, 1977 
 
 
CONTENTS 
CHAPTER I  
 
PRELIMINARY 
1.  Short title, extent and commencement 
2.  Definitions 
CHAPTER II  
 
PREVENTIVE DETENTION 
3.  Preventive detention 
4.  Powers to deal with an absconding person 
5.  Review Boards 
6.  Power to revoke or modify detention order 
7.  Delegation 
CHAPTER III  
 
SECURITY AND OTEHR PROCEEDINGS 
8.  Power to require person suspected of smuggling to appear 
9.  Power of Special Judge to have inquiry conducted by Magistrate, etc 
10.  Power to proceed against person accused of smuggling 
11.  Report to Magistrate in respect of absconder, etc 
12.  Summons, etc., to embody substance of order 
13.  Power to dispense with personal appearance 
14.  Inquiry by Special Judge 
 
 

 
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15.  Power to require bond 
16.  Contents of bond, etc 
17.  Habitual offenders 
18.  Action where Special Judge does not proceed under section 15 or 17 
19.  Order in respect of person in custody or detention 
20.  Power to reject surety 
21.  Person failing to give security 
22.  Surety may ask for cancellation of bond 
23.  Cancellation of bond and execution of fresh bond 
24.  Deposit of money in lieu of execution of bond 
25.  Forfeiture of bond 
26.  Execution of fresh bond in certain circumstances 
27.  Recovery of amount of penalty 
28.  Person required to execute bond may be photographed, etc 
29.  Appeal 
CHAPTER IV  
 
FORFEITURE OF PROPERTY 
30.  Property acquired by smuggling not to be held 
31.  Notice to person holding property suspected to be acquired by smuggling 
32.  Order of Special Judge 
33.  Burden of proof 
34.  Option to pay fine in lieu of property forfeited 
35.  Transfer of certain property void 
36.  Notice, etc., not to be called in question 
37.  Special Judge, etc., to have certain powers of Civil Court 
38.  Power of Special Judge to conduct inquiry, investigation, etc 
 
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39.  Forfeited property to be surrendered 
40. Rectification of mistakes 
41.  Finding of other court, etc 
42.  Service of notice 
43.  Appeal 
CHAPTER V  
 
MISCELLANEOUS 
44.  Appointment of Special Judges 
45.  Transfer of cases 
46.  Constitution of Special Appellate Courts 
47.  Special Prosecutors, etc 
48.  Indemnity 
49.  Act to override other laws 
50.  Power to make rules 
51.  [Omitted] 
52.  [Omitted] 
 
 
  
 
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THE PREVENTION OF SMUGGLING ACT, 1977 
Act No. XXII of 1977 
           [5th May, 1977] 
An Act to provide for effective prevention of smuggling and for matters connected therewith. 
WHEREAS it is expedient to provide for effective prevention of smuggling and for matters 
connected therewith.  
It is hereby enacted as follows:— 
CHAPTER I  
 
PRELIMINARY 
1. Short title, extent and commencement.___ (1) This Act may be called the Prevention of 
Smuggling Act, 1977.  
(2) It extends to the whole of Pakistan. 
(3) It shall come into force on such 1day as the Federal Government may, by notification in the 
official Gazette, appoint. 
2. Definitions.___ (1) In this act, unless there is anything repugnant in the subject or context,—  
(a)  “associate” in relation to a person, means— 
(i)  any individual who is or has been residing in the residential premises, 
including out-houses and servant-quarters, of such person;  
(ii)  any individual who is or has been managing the affairs or keeping the 
accounts of such person;  
(iii)  any association of persons, body of individuals, partnership firms, or 
private limited company within the meaning of companies Act, 1913 
(VII of 1913), of which such person is or has been a member, partner or 
director;  
(iv)  any individual who is or has been a member, p artner or director of an 
association of persons, body of individuals, partnership firm or a private 
limited company referred to in sub-clause (iii);  
(v)  a trustee of any trust created by such person; or  
(vi)  where the Special Judge, for reasons to be recorded, considers that any 
property of such person is held on his behalf by any other person, such 
other person; 
1I.e. the 16th day of May, 1977, see Gaz. of P., 1977, Ext. (Islamabad), Pt. II, p. 829. 
 
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(b) “prescribed” means prescribed by rules made under this Act;  
(c) “property” includes property held outside Pakistan and any interest in property;  
(d) “property acquired by smuggling” means property acquired, whether before or 
after the commencement of this Act, by an y person the aggregate value of the 
property held by whom exceeds one lac rupees, either wholly or partly. 
Explanation.___In this clause, “value” means the market -value at the time the property in 
question was acquired; 
(e)  “relative”, in relation to a person, means— 
(i)  spouse of the person;  
(ii)  brother or sister of the person; .  
(iii)  brother or sister of the spouse of the person;  
(iv)  any lineal ascendant or descendant of the person;  
(v)  any lineal ascendant or descendant of the spouse of the person;  
(vi)  spouse of a person referred to in sub-clauses (ii), (iii), (iv) or (v); or  
(vii)  any lineal descendant of a person referred to in sub-clause (ii) or (iii); 
(f)  “smuggling” has the same meaning as in clause (s)  of section 2 of the 
Customs Act, 1969 (IV of 1969), but, in Chapter II, relates only to the taking of 
goods out of Pakistan;  
(g)  “Special Appellate Court” means a Special Appellate Court constituted under 
section 46; and  
(h)  “Special Judge” means a Special Judge appointed under section 44. 
(2) Expressions used in this Act but not herein defined shall have the same meaning as are 
assigned to them in the Code of Criminal Procedure, 1898 (V of 1898) or the Customs Act, 1969 (IV 
of 1969). 
CHAPTER II  
 
PREVENTIVE DETENTION 
3. Preventive detention.___ (1) In order to maintain supplies essential to the community, if the 
Federal Government or a Provincial Government is satisfied that, for preventing any person from 
indulging in smuggling, it is necessary to detain him, it may, by an order in writing, direct the arrest 
and detention of such person for such period as may, subject to the provisions of this Act, be specified 
in the order.  
 
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(2) When an order of detention is made by the Provincial Government, it shall immediately 
forward to the Federal Government a report in respect of that order and, when such order is made by 
the Federal Government, it shall immediately intimate this fact to the Provincial Government of the 
Province in which such person ordinarily resides.  
(3) An order of arrest under sub-section (1) may be addressed to a police officer or any other 
person and such officer or person shall have the power to arrest the person mentioned in the order and, 
in doing so, he may use such force as may be necessary.  
(4) The police officer or other person, as the case may be, arresting a person in pursuance of an 
order under sub-section (1) shall commit the arrested person to such custody as may be specified under 
sub-section (5).  
(5) Every person in respect of whom a detention order has been made shall be detained in such 
custody and under such conditions as to maintenance, interviews or communication with others, 
discipline and punishment for breach of discipline as the Federal Government may, by general or 
special order, specify.  
(6) Where a detention order has been made under subsection (1) against any person, the 
Government making the order shall, as soon as may be, but not later than fifteen days from the date of 
detention, communicate to such person the grounds on which the order has been made and shall afford 
him the earliest opportunity of making a representation against the order:  
Provided that the Government may refuse to disclose facts the disclosure of which it considers 
to be against the public interest.  
(7) Where a representation is made to the Government under sub -section (6), it may, on 
consideration of the representation and giving the person detained an opportunity of being heard, 
modify, rescind or confirm the order. 
4. Powers to deal with an absconding person.___ (1) If the Federal Government, or as the case 
may be, a Provincial Government has reason to believe that a person in respect of whom a detention 
order has been made is absconding or is concealing himself so that the order cannot be executed that  
Government may:— 
(a)  send a report in writing of the fact to the Magistrate having jurisdiction in the 
place where such person ordinarily resides or has his property, and thereupon 
the Magistrate shall take proceedings under sections 87, section 88 and section 
89 of the Code of Criminal Procedure, 1898 (Act V of 1898) in respect of such 
person and his property as if the detention order were a warrant issued by such 
Magistrate; or  
(b)  by order published in the official Gazette or any news paper, direct such person 
to appear before such officer, at such place and within such period as may be 
specified in the order; and if such person fails to comply with such direction, he 
shall, unless he proves that it was not possible for him to comply therewith and 
that he had, within the period specified in the order, informed the officer 
mentioned in the order of the reason which rendered compliance therewith 
 
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impossible and of his whereabouts, be punishable with imprisonment for a term 
which may extend to two years, or with fine, or with both. 
(2) A police officer, not below the rank of sub-inspector, if satisfied on the receipt of credible 
information that a person against whom an order of arrest and detention has been made under sub -
section (1) of section 3 is present within his jurisdiction, may arrest him without a warrant in the same 
manner as he would have done if such order of arrest had been addressed to him and thereupon commit 
the arrested person to such custody as may be specified under sub -section (5) of sec tion 3, or, if he 
receives any requisition in this behalf from the police officer or other person to whom the detention 
order has been addressed for execution, he shall commit the person arrested to the custody of such 
police officer or other person. 
(3) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act V of 
1898), an offence under clause (b) of subsection (1) shall be cognizable and non-bailable. 
5. Review Boards .___ (1) As soon as may be, the Federal Government and each Provincial 
Government shall constitute one or more Review Boards, each consisting of a Chairman and two other 
persons, each of whom is or has been a Judge of the Supreme Court or a High Court to be appointed 
by the Chief Justice of Pakistan. 
(2) The opinion of the Review Board shall be expressed in terms of the views of the majority 
of its members, including the Chairman.  
(3) A person shall not be detained under an order made under section 3 for a period exceeding 
three months unless the Review Board, to which a reference shall be made by the Government making 
such order, has reported, before the expiration of the said period, that there is, in its opinion, sufficient 
cause for such detention, and, if the detention is continued after the said period of three months, unless 
the Review Board has again reviewed his case and reported, before the expiration of each period of 
three months, that there is, in its opinion, sufficient cause for such detention.  
(4) For the purpose of the proviso to clause (7) of Artic le 10 of the Constitution, smuggling 
shall be an anti-national activity.  
(5) Where a person is to be detained for a period exceeding three months, the Federal 
Government, or as the case may be, the Provincial Government shall, before the expiration of tha t 
period, refer his case to the Review Board and shall furnish to the Review Board all documents relevant 
to the case unless a certificate, signed by a Secretary to the Government concerned, to the effect that 
it is not in the public interest to furnish any documents, is produced.  
(6) The Review Board shall, after affording the person detained an opportunity of being heard 
in person and considering the material placed before it, including the representation, if any, made by 
such person and, if necessary, c alling for any further information from the Government, submit its 
report, before the expiration of the period of three months mentioned in sub -section (3), to the 
Government.  
(7) If, in any case, the Review Board reports that there is, in its opinion, no sufficient cause for 
further detention of the person whose case has been referred to it, the Government concerned shall 
 
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revoke the detention order and direct that such person be released immediately or on the expiry of' the 
period of detention.  
(8) If the Board reports that there is, in its opinion, sufficient cause for the detention of such 
person, the Government concerned may, subject to the provisions of sub-section (3), continue to detain 
him for such period as it may deem fit.  
(9) The Review Board shall determine the place of detention of the person detained and fix a 
reasonable subsistence allowance for his family; and thereupon such person shall, if he is detained 
elsewhere in pursuance of an order made under sub-section (4) of section 3, immediately be shifted to 
and detained at the place specified by the Board.  
(10) A person whose case has been referred to the Review Board under sub -section (5) shall 
not be entitled to be represented or defended by a legal practitioner before the Board, an d the 
proceedings and the report of the Board, excepting that part of the report in which the opinion of the 
Board is specified, shall be confidential. 
6. Power to revoke or modify detention order .___ (1) Without prejudice to the provisions of 
section 21 of the General Clauses Act, 1897 (X of 1897), a detention order may, at any time, be revoked 
or modified:— 
(a)  by the Government by which such order was made; or  
(b)  by the Federal Government if the order was made by any of its officers or by  
any Provincial Government or any officer of that Government. 
(2) The revocation, otherwise than on the recommendation of the Review Board, of a detention 
order against any person, or the expiry of any such order, shall not bar the making, against the same  
person and on the same grounds, of a fresh detention order: 
Provided that a person shall not be detained under successive orders on the same grounds for a 
period-exceeding three months in the aggregate unless the Review Board has reported before the 
expiration of the said period that there is, in its opinion, sufficient cause for such detention. 
Explanation.___ In computing the aggregate period of three months, there shall be excluded any 
period for which the person concerned has been detained with the authority of the Review Board under 
section 5. 
7. Delegation. The Federal Government or, as the case may be, a Provincial Government may, 
by notification in the official Gazette, delegate all or any of its powers under this Chapter to any of its 
officers, not below the rank of a Joint Secretary, in case the delegation is to be made by the Federal 
Government, and, not below the rank of a Secretary, if the delegation is to be made by a Provincial 
Government. 
CHAPTER III  
 
SECURITY AND OTEHR PROCEEDINGS 
8. Power to require person suspected of smuggling to appear . Whenever a Special Judge 
has information that there is within the limits of his jurisdiction any person who, within or without 
 
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such limits, is indulging in smuggling, such Judge may, if he is of the opini on that there is sufficient 
ground for proceeding, require such person, in the manner hereinafter provided, to appear before him. 
9. Power of Special Judge to have inquiry conducted by Magistrate, etc.___ (1) If the Special 
Judge receives credible information that any person within his jurisdiction is indulging in smuggling 
but there is no sufficient ground for proceeding against him under section 8, the Special Judge may 
direct any Magistrate or police officer or officer of any other Department to hold a preliminary inquiry 
into the truth of such information and submit his report within such period as the Special Judge may 
specify and such Magistrate or officer shall comply with such direction. 
(2) On the-receipt of such report, if the Special Judge is satisfied that there is sufficient ground 
for proceeding against the person in respect of whom the report has  been received, the Special Judge 
shall proceed under section 8. 
(3) If the report discloses no sufficient ground for proceeding against the p erson under any 
provision of this Act, the Special Judge may file the report. 
10. Power to proceed against person accused of smuggling .___ (1) When the Special Judge 
acting under section 8 deems it necessary to proceed against the person in respect of whom  such 
information has been received, he shall make an order in writing setting forth the substance of such 
information and his reasons for taking action.  
(2) If the person in respect of whom such order is made is present in court, it shall be read over 
to him and, if he so desires, the substance thereof shall be explained to him.  
(3) If such person is not present in court, the Special Judge shall issue a summons requiring 
him to appear or, if such person is in custody, make an order directing the officer in whose custody he 
is to bring him before the Court: 
Provided that the Special Judge may, at any time, issue a warrant, bailable or nonbailable, for 
the arrest and production of such person before him if he is satisfied that— 
(i)  such person is purposely avoiding service of summons; or  
(ii)  such person does not appear inspite of service of the summons; or  
(iii)  for any other reason to be recorded,  
 it is necessary to issue a warrant. 
11. Report to Magistrate in respect of absconder, etc . If the Special Judge has reason to 
believe that a person against whom a warrant of arrest has been issued under subsection (3) of section 
10 has absconded or is concealing himself to avoid the execution of the warrant, the Special Judge 
may make a report to the Magistrate having jurisdiction in the area where such person ordinarily resides 
or has property, and the Magistrate shall take proceedings under sections 87, 88 and 89 of the Code of 
Criminal Procedure, 1898 (Act V of 1898), in respect of such person and his property as if the warrant 
were a warrant issued by such Magistrate.  
 
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12. Summons, etc., to embody substance of order. Every summons or warrant issued under 
sub-section (3) of section 10 shall, so far as possible, embody the substance of the ord er made under 
sub-section (1) of that section.  
13. Power to dispense with personal appearance . The Special Judge may, for sufficient 
reason, dispense with the personal attendance of any person called upon to show  cause under section 
10 and may permit him to appear by an advocate, subject to such conditions, if any, that the Judge may 
deem fit to impose and may, at any time, revoke the order dispensing with such attendance.  
14. Inquiry by Special Judge .—(1) When an order made under sub-section (l) of section 10 
has been read over under sub-section (2) thereof, or when any person appears or is brought before the 
Special Judge in compliance with, or its execution of, a summons or a warrant issued under sub-section 
(3) of that section, the Special Judge shall proceed to inquire into the truth of the information upon 
which the action has been taken and to take such further evidence as may appear necessary: 
Provided that, if, before the commencement of evidence, the perso n complained against 
requests for a copy of such information, it shall be supplied to him free of cost. 
(2) Such inquiry shall, subject to the provisions of this Act, be made, as nearly as may be 
practicable, in the manner prescribed in the Code of Crimina l Procedure, 1898 (Act V of 1898) for 
conducting trials and recording evidence in cases triable by a Court of Session, except that no charge 
need be framed: 
Provided that any omission or failure to follow that procedure shall not, unless it has occasioned 
a failure of justice, vitiate the proceedings. 
(3) For the purpose of conducting inquiry under this Chapter, the Special Judge shall have all 
the powers of a Sessions Judge for issuing summons and warrants, compelling the attendance of 
witnesses and produc tion of documents, exanimation of witnesses and issuing commissions for 
examination of witnesses.  
(4) Pending the completion of the inquiry under sub -section (1), the Special Judge may direct 
the person against whom the inquiry is pending to execute a bond, with or without sureties, undertaking 
therein to desist from indulging in smuggling until the conclusion of the inquiry and to appear before 
the Special Judge on every date of hearing, and may detain him in custody until such bond is executed 
or, in default of execution, until the inquiry is concluded: 
Provided that the Special Judge may, for reasons to be recorded, instead of taking a bond as 
aforesaid, of der the detention of such person in such prison as the Special Judge thinks suitable, but 
such detention shall not exceed three months. 
(5) Where two or more persons have been associated in the matter under inquiry, they may be 
dealt within the same or a separate inquiry as the Special Judge deems fit. 
15. Power to require bond.___ (1) If, upon such inquiry, the Special Judge is satisfied that, with 
a view to preventing such person from indulging in smuggling, it is necessary that he should be 
required to execute a bond with sureties for a period not exceeding three years, the Special Judge shall 
make an order accordingly : 
 
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Provided that— 
(a)  the amount of each bond shall be fixed with due regard to the circumstances of 
the case; and  
(b)  if such person is a minor, the bond shall be executed only by his sureties. 
16. Contents of bond, etc . In th e bond to be executed under section 15, such person shall 
undertake to desist from indulging in smuggling for the period specified in the bond and the 
commission or abetment of, or attempt to commit, the offence of smuggling, shall -be a breach of the 
bond.  
17. Habitual offenders .___ (1) If, upon such inquiry, the Special Judge is satisfied that such 
person— 
(a)  habitually indulges in smuggling; or  
(b)  habitually receives smuggled goods; or  
(c)  habitually protects, harbours or aids, financially or otherwise, persons indulging 
in smuggling;  
 such Judge may, in addition to, or in substitution of, requiring such person to 
execute a bond under section 15, direct— 
(i)  that his movements be restricted to any place or area and that he shall 
report himself at such time and place and in such mode as may be 
specified in the order; or  
(ii)  that he shall not reside within the area specified in the order and shall 
report hims elf at such time and place and in such mode as may be 
specified in that order: 
Provided that, if such person, at the time when an order is made under this sub -section, is 
sentenced to, or is under going a sentence of, imprisonment or is detained under any law providing for 
preventive detention, the operation of the order shall be deferred till the expiry of the period of 
imprisonment or detention. 
(2) No order made under sub-section (1) shall be operative for a period exceeding three years.  
(3) If a person  against whom an order has been made under sub -section (1) fails, without 
reasonable, cause, to comply with such order, he shall be punished with imprisonment for a term which 
may extend to three years, or with fine, or with both.  
(4) An offence under sub-section (3) shall be cognizable and non-bailable. 
18. Action where Special Judge does not proceed under section 15 or 17 . If, upon such 
inquiry, the Special Judge does not consider it necessary to take any action under section 15 or section 
17, he shall make an order accordingly and the person against whom the inquiry has been conducted 
 
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shall be discharged and, if he is in custody only for the purpose of the inquiry, he shall be released 
forthwith.  
19. Order in respect of person in custody or detention. If any person in respect of whom an 
order requiring security has been made under section 15 is, at the time when such order is made, 
sentenced to, or undergoing a sentence of imprisonment or is detained under any law providing for 
preventive detention, the period for which such security is required shall commence on the expiration 
of such sentence or detention.  
20. Power to reject surety.___ (1) A Special Judge may refuse to accept any surety offered, or 
may reject any surety previously accepted by him or his predecessor, on the ground that such surety is 
an unfit person for the purpose of the bond: 
Provided that, before so refusing to accept or rejecting any such surety, he shall either himself 
hold an inquiry on oath into the fitness of the surety or cause such inquiry to be made by any Magistrate. 
(2) The Special Judge, or as the case may be, the Magistrate who has been directed to hold such 
inquiry, shall, before holding the inquiry, give reasonable notice to the surety and the person by whom 
the surety was or has been offered and shall in making the inquiry record the substance of the evidence 
adduced before him.  
(3) If the Special Judge is satisfied after considering the evidence so adduced before him, or 
before a Magistrate deputed under sub-section (1) and the report of such Magistrate, that the surety is 
an unfit person for the purpose of the bond, he shall make an order refusing  to accept or rejecting, as 
the case may be, such surety after recording his reasons therefor: 
Provided that, before making an order rejecting any surety who has previously been accepted, 
the Special Judge shall issue a summons or warrant as he thinks fit and cause the person for whom the 
surety is bond to appear or to be brought before him. 
21. Person failing to give security.___ (1) If any person ordered to give security under section 
15 does not give such security on or before the date on which the period for which such security is to 
be given commences, he shall be committed to prison or, if he is already in prison, be detai ned in 
prison until he gives the security or such period expires: 
Provided that the period for which any person is imprisoned for failure to give security shall 
not exceed three years. 
(2) If the security is tendered to the officer-in-charge of the prison, he shall forthwith refer the 
matter to the Special Judge who made the order and shall await his orders.  
(3) Imprisonment for failure to give security may be simple or rigorous as the Special Judge 
may direct.  
(4) Whenever the Special Judge is of the opi nion that for reasons of health or otherwise it is 
expedient to release any person imprisoned for failing to give security under section 15, he may direct 
the release of such person either without conditions or upon any condition which such person accepts: 
 
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Provided that any condition imposed shall cease to be operative on the expiration of the period 
for which such person was ordered to give security. 
(5) If the condition, if any, upon which any such person has been released is, in the opinion of 
the Special Judge by whom the order of release was made or of his successor, not fulfilled, he may 
cancel the conditional order passed under sub-section (4) and direct that such person may be arrested 
and produced before him.  
(6) When such person is brought before the Special Judge, he may be directed to give security 
in accordance with the terms of the original order for the unexpired portion of the term for which he 
was in the first instance ordered to be detained for his failure to give security and, if he fails to give 
such security, the Special Judge may remand such person to prison to undergo the unexpired portion 
of the term, after deducting such period of conditional discharge as the Special Judge may deem fit to 
specify.  
(7) A person remanded to prison under sub-section (6) shall be released on his given security 
in accordance with the terms of the original order for the unexpired portion of the term specified in 
that order. 
22. Surety may ask for cancellation of bond. Any surety may at any time apply to the Special 
Judge for the cancellation of a bond executed by him under this Chapter and the Special Judge may 
issue a summons or warrant, as he thinks fit, requiring the person for whom such surety is bound to 
appear or to be brought before him.  
23. Cancellation of bond and execution of fresh bond. When a person for whose appearance 
a summons or warrant has been issued under  the proviso to sub -section (3)of section 20 or under 
section 22 appears or is brought before him, the Special Judge shall cancel the bond executed by such 
person and shall direct such person to give, for the unexpired portion of the period of such bond, fresh 
security of the same description as the original security and every such direction shall, for the purpose 
of sections 20, 21 and 22, be deemed to be an order made under section 17.  
24. Deposit of money in lieu of execution of bond. A person required to execute a bond, with 
or without sureties, under this Chapter, may be permitted by the Special Judge to deposit in such 
manner a sum of  money or Government promissory notes or bank guarantee to such amount as the 
Special fudge may specify, in-lieu of executing a bond.  
25. Forfeiture of bond .___ (1) Whenever it is proved to the satisfaction of the Special Judge 
that a bond executed under this Chapter has been forfeited, he may call upon any person bound to pay 
the penalty thereof. 
(2) If the penalty of any part thereof is not paid, the Special Judge may proceed to recover the 
same by issuing a warrant for the attachment and sale of the movable or immovable property, or both, 
belonging to such person, or his estate if he dies after the order for forfeiture of the bond is passed. 
(3) When executing the warrant for the attachment and sale of the property or estate of such 
person, the Special Judge shall, as nearly as possible, follow the procedure for attachment and sale of 
property as laid down in section 88 of the Code of Criminal Procedure, 1898 (Act V of 1898): 
 
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Provided that, if such person, after the attachment of his property, pays the  penalty, the order 
of attachment shall be withdrawn. 
(4) If such penalty or any part thereof is not paid and cannot be recovered by such attachment 
and sale, such person shall be liable, by order of the Special Judge who issued the warrant, to 
imprisonment for a term which may extend to one year; and such imprisonment may either be simple 
or rigorous, as the judge may direct. 
(5) The Special Judge may, for reasons to be recorded, remit any portion of the penalty and 
enforce payment in part only. 
26. Execution of fresh bond in certain circumstances . When a surety to a bond under this 
Chapter becomes insolvent or dies, or when the bond is forfeited under section 25, the Special Judge 
by whose order such bond was taken may order the person from whom the bond was demanded to 
execute a fresh bond in accordance with the directions of the original order and, if such person fails to 
do so, the Special Judge may proceed as if there had been a default in compliance with such original 
order.  
27. Recovery of amou nt of penalty . For recovering the amount of penalty or any portion 
thereof under section 25, the Special Judge may direct that it may be recovered as an arrear of land 
revenue or may call upon the Magistrate having jurisdiction to assist him in effecting s uch recovery 
and the Magistrate shall render all necessary assistance in this regard. 
28. Person required to execute bond may be photographed, etc. Every person in respect of 
whom an order has been made under section 15 or section 17 shall, if so directed by the Special Judge, 
present himself before such officer and at such time and place as may be specified in the order for 
being photographed, for giving his finger-impressions or specimens of his handwriting and signatures 
and he shall allow himself to be photographed and affix his finger impressions or supply specimens of 
his handwriting and signatures. 
29. Appeal.—(1) An appeal Against an order made by a Special Judge under sub -section (4) 
of section 14, section 15, section 17, sub -section (3) of section 20, section 21 or subsection (2) of 
section 25 shall lie to the Special Appellate Court, within thirty days from the date of the order. 
(2) The Special Appellate Court on hearing the appeal may— 
(a)  accept the appeal and set aside the order appealed against; or  
(b)  dismiss the appeal; or  
(c)  subject to the provisions of this Act, modify the order appealed against in such 
manner as it may think fit. 
(3) The provisions of the Limitation Act, 1908 (IX of 1908), shall apply to an appeal under sub-
section (1). 
 
 
 
 
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CHAPTER IV  
 
FORFEITURE OF PROPERTY 
30. Property acquired by smuggling not to be held.___ (1) It shall not be lawful for any person 
to hold, either in his own name or in the name of any relative or associate, any property acquired by 
smuggling.  
(2) Any such property held in contravention of the provisions of sub-section (1) shall be liable 
to be forfeited to the Federal Government in the manner hereinafter provided. 
31. Notice to person holding property suspected to be acquired by smuggling .___ (1) 
Whenever a Special Judge receives information that within the limits of his jurisdiction any person, 
either in his own name or in the name of any relative or associate, is holding property which is 
reasonably suspected to be acquired by smuggling, the Special Judge may issue to such person a notice 
calling upon him to show cause, within such time as may be specified in the notice, which shall not be 
less than thirty days, why the whole or any part of such property should not be declared to be property 
acquired by smuggling and to be forfeited to the Federal Government: 
Provided that no such notice shall be issued unless, having regard to the value of his assets, his 
known sources of income, his style of living, his previous involvement in 12 smuggling or conviction 
under any law relating to the prevention of smuggling and other similar factors, the Special Judge has 
reason to believe (which reason he shall record in writing) that there is sufficient ground for proceeding 
against such person. 
(2) A notice issued under sub -section (1) shall, among other things, require such person to 
indicate the sources of his income the income and assets out of which, or by means of which, he has 
acquired such property, the-evidence he relies upon and other relevant information and particulars.  
(3) Where a notice under sub-section (1) issued to any person specifies any property as being 
held on his behalf by any of his relatives or associates, a copy of the notice shall also be served upon 
such relative or associate. 
32. Order of Special Judge.___ (1) The Special Judge may, after considering the explanation, 
if any, to the notice issued under section 31 and the evidence recorded or produced before him, and 
after giving the relative or associate of such person, in case a copy of the notice has also been served 
on him, a reasonable opportunity of being heard, by an order, record a finding whether the property to 
which the notice relates is property acquired by smuggling. 
(2) Where the Special Judge is satisfied that any of the properties mentioned in the notice issued 
under section 31 are properties acquired by smuggling but he is not able to specifical ly identify such 
property, then it shall be lawful for him to specify the properties which, to the best of his judgement, 
are properties acquired by smuggling and to record a finding accordingly under sub-section (1).  
(3) Where a Special Judge records the finding under subsection (1) that any property is property 
acquired by smuggling, he shall declare that such property shall, subject to the provisions of this 
Chapter, stand forfeited to the Federal Go vernment and vest in that Government free from all 
encumbrances.  
 
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(4) Where an order of forfeiture of property passed under sub -section (3) is in respect of any 
share in a company registered under the Companies Act, 1913 (VII of 1913), then the company shall, 
notwithstanding anything contained in that Act or its memorandum or articles of association, forthwith 
register the Federal Government as transferee of such shares. 
33. Burden of proof . In any proceedings under this Chapter, the burden of proving that any 
property specified in a notice issued under section 31 is not property acquired by smuggling shall be 
on the person to whom such notice is issued and, on his relatives, or associates, if any, on whom a copy 
of such notice has been served.  
34. Option to pay fine in lieu of property forfeited .___ (1) Where by virtue of a declaration 
made by a Special Judge under section 32 only less than half of any property stands forfeited to the 
Federal Government and such property is indivisible or cannot be easily separated from the rest without 
substantially imparing the value of the property, the person holding it prior to such declaration shall be 
given by the Special Judge an option to pay in lieu of forfeiture of that part of the property a fine equal 
to the market value of the property prevalent at the time of its forfeiture. 
(2) Where such person pays the fine in lieu of forfeiture, within such time as may be allowed 
to him, the Special Judge may, by order, revoke the declaration of forfeiture made under sectio n 32 
and thereupon such property shall stand released. 
35. Transfer of certain property void .___ (1) After the issue of a notice or copy of a notice 
under section 31, the property mentioned in such notice shall not be transferred by any mode 
whatsoever, nor shall any change be created thereon, which proceedings under this Chapter are pending 
and any transfer of such property or creation of charge in contravention of this section shall be void; 
and if such property is subsequently forfeited to the Government under section 32, it shall vest in that 
Government free of any encumbrances created after the issue of the notice. 
(2) Any person who transfers any property, or creates a charge thereon, in contravention of sub-
section (1) shall be punishable with imprisonment for a term which may extend to three years and shall 
also be liable to fine. 
36. Notice, etc., not to be called in question . No notice issued or served , declaration made 
and order passed under this Chapter shall be called in question by any court, except as provided in this 
Chapter, nor shall such notice, declaration or order be invalid by reason of any error in the description 
of the property or person m entioned therein if such property or person is identifiable from such 
description.  
37. Special Judge, etc., to have certain powers of Civil Court . The Special Judge and the 
Special Appellate Court shall have all the powers of a Civil Court while trying a suit under the Code 
of Civil Procedure, 1908 (Act V of 1908), in respect of the following matters, namely:___ 
(a)  summoning and enforcing the attendance of any person and examining him on 
oath;  
(b)  requiring the discovery and production of documents;  
(c)  receiving evidence on affidavits;  
 
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(d)  requisitioning any public record or copy thereof, from any court or office;  
(e)  issuing commissions for examination of witnesses or documents; and  
(f)  any other matter which may be prescribed. 
38. Power of Sp ecial Judge to conduct inquiry, investigation, etc .___ (1) Notwithstanding 
anything contained in the 1[Income-Tax Ordinance, 1979 (XXXI of 1979) ] or any other law for the 
time being in force, for the purpose of any, proceedings under this Chapter, or initiation of any such 
proceedings, the Special Judge shall have the power to conduct or cause, to be conducted any inquiry, 
investigation or survey in respect of any person, place property, assets documents, books of accounts 
and any other relevant matters. 
 (2) For the purposes of sub-section (1), the Special Judge shall have the power to require any 
officer or authority of the Federal Government or a Provincial Government or a local authority to 
furnish any information in relation to such persons, property, assets or other matters as in his opinion 
are useful for, or relevant to, the purposes of this Chapter. 
(3) For the purposes of sub -section (1), the following officers are hereby empowered and 
required to assist the Special Judge and the Special Appellate Court, namely:___ 
(a)  officers of Customs and Central Excise;  
(b)  officers of Income-tax Department;  
(c)  officers of Federal Investigation Agency;  
(d)  officers of Pakistan Rangers;  
(e)  officers of Police;  
(f)  officers of Food Departments of the Provincial Government;  
(g)  officers of the Pakistan Public Works Department;  
(h)  officers of the Provincial Public Works Department;  
(i)  officers of the Revenue Departments of the Provincial Government; and  
(j)  such other officers of the Federal Government or Provincial Governments as are 
specified by the Federal Government in this behalf by notification in the official 
Gazette. 
39. Forfeited property to be surrendered.___ (1) Where any property has been declared to be 
property acquired by smuggling and forfeited to the Federal Government under this Chapter, or where 
a person who has been given option under section 34 has not paid the fine within the specified time, 
the Special Judge may direct such person or any other person who is in possession of such property to 
surrender or deliver possession thereof to any perso n authorised in this behalf by the Federal 
Government within thirty days of the service of such direction, or, where the property is held outside 
Pakistan, to repatriate the value of such property and the income derived there from within such time 
as may be specified by the Special Judge and surrender it to the Federal Government. 
1 Subs, by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3and II Sch. 
 
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(2) If any person to whom a direction has been issued under sub -section (1) refuses or fails to 
comply with such direction, the Special Judge may cause poss ession of the property to be taken and 
for that purpose may authorise use of such force as may be necessary.  
(3) The property forfeited under section 32 shall, if it is agricultural property, be mutated in the 
name of the Federal Government, or if it is u rban immovable property, be transferred to the Federal 
Government in such manner as the Special Judge may direct.  
(4) For the purpose of taking possession of forfeited property under sub-section (2), the Special 
Judge may requisition the services of any police officer for assistance and it shall be the duty of such 
officer to comply with such requisition.  
(5) Whoever fails to comply with a direction issued under sub -section (1) shall be punishable 
with imprisonment for a term which may extend to three years and shall also be liable to fine. 
 40. Rectification of mistakes . The Special Judge or the Special Appellate Court may at any 
time rectify any mistake apparent on the face of the record and amend any order by such rectification:  
Provided that, if such amendment is likely to affect any person prejudicially, no such 
amendment shall be made without giving such person a reasonable opportunity of being heard. 
41. Finding of other court, etc. No finding of any court, officer or authority under any law in 
relation to the property in respect of which any notice has been issued under this Chapter shall be 
conclusive for the purpose of any proceedings under this Chapter.  
42. Service of notice. Any notice issued or order made under this Chapter shall be served by 
tendering such notice or order or by sending it by registered post to the person on whom it is intended 
to be served or, if such service is not possible, by affixing it on a conspicuous place in the property in 
question or on some conspicuous place or part of the premises of such person where he last resided or 
carried on business or personally worked for gain, or by any other mode as the Special Judge or the 
Special Appellate Court may direct.  
43. Appeal.—(1) Any person aggrieved by an order of the Special Judge passed under section 
31, section 32 or section 34 may, within thirty days from the date of such order, prefer an appeal before 
the Special Appellate Court whose decision thereon shall be final.  
(2) The provisions of the Limitation Act, 1908 (IX of 1908), shall apply to an appeal field under 
sub-section (1). 
CHAPTER V  
 
MISCELLANEOUS 
44. Appointment of Special Judges .___ (1) The Federal Government may, by notification in 
the official Gazette, appoint as many Special Judges as it considers necessary and, where it appoints 
more than one Special Judge, shall specify in the notification the headquarters of each Special Judge 
and the territorial limits within which he shall exercise jurisdiction under this Act. 
(2) No person shall be appointed to be a Special Judge unless he is or has been a Sessions 
Judge. 
 
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45. Transfer of cases .___ (1) Where more than one Special Judge are appointed within the 
territorial jurisdiction of a Special Appellate Court, the Special Appellate Court, and where not more 
than one Special Judge is so appointed, the Federal Government, may, by order in writing, direct the 
transfer, at any stage of the trial, of any case from the court of one Special Judge to the Court of another 
Special Judge for disposal, whenever it appears to the Special Appellate Court or, as the case may be, 
the Federal Government, that such transfer will promote the ends of justice or tend to the general 
convenience of the parties or witnesses. 
(2) In respect of cases transferred to a Special Judge under sub-section (1), such Special Judge 
shall not, by reason of the said transfer, be bound to recall and rehear any witness whose evidence has 
been recorded in the case before the transfer and act upon the evidence already recorded or produced 
before the court which tried the case before the transfer 
46. Constitution of Special Appellate Courts .___ (I) The Federal Government may, by 
notification in the official Gazette, constitute as many Speci al Appellate Courts as it may consider 
necessary each consisting of a person who is a judge of a High Court, to be appointed by the Federal 
Government in consultation with the Chief Justice of the High Court of which he is a Judge.  
(2) The Federal Governm ent shall specify in a notification issued under sub -section (1) the 
headquarters of the Special Appellate Court and, where it constitutes more than one Special Appellate 
Court, the territorial limits within which, or the class of cases in respect of which , each Special 
Appellate Court shall exercise jurisdiction.  
(3) If for any reason a vacancy occurs in the said Court, the Federal Government shall appoint 
another person in accordance with sub -section (1) to fill the vacancy and the proceedings may be 
continued before the Court from the stage the vacancy occurs.  
(4) The Special Appellate Court constituted under this Act shall exercise the powers conferred 
by or under this Act in accordance with the provisions of this Act, and the powers conferred by or 
under the Customs Act, 1969 (IV of 1969), in accordance with the provisions of that Act.  
(5) When the Judge of a Special Appellate Court is, for any reason, temporarily unable to 
perform his duties, he may inform the Chief Justice of the High Court of which he is a Judge and the 
Chief Justice shall nominate another Judge to perform the functions of Special Appellate Court so long 
as such Judge is unable to perform his duties.  
(6) The Federal Government may, on the request of the Judge of a Special Appellate Court, 
transfer any appeal or revision and entrust the same to the Judge of another Special Appellate Court 
for disposal; and such Judge shall dispose of such appeal or revision in accordance with law. 
47. Special Prosecutors, etc .___ (1) For the purposes of conducting proceedings before the 
Special Judge, the Federal Government may appoint persons who have been advocates of a High Court 
for a period of not less than five years to be Special Prosecutors on such terms and conditions as may 
be prescribed and any person so appointed shall be competent to conduct proceedin gs under this Act 
before the Special Judge for and on behalf of the Federal Government and, if so directed by the Federal 
Government, to withdraw such proceedings.  
 
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(2) A law officer appointed under the Central Law Officers Ordinance, 1970 (VII of 1970), 
shall be competent to conduct proceedings before the Special Appellate Court for and on behalf of the 
Federal Government, and, if so, required by the Federal Government, to withdraw such proceedings.  
(3) When a Special Prosecutor appointed under sub-section (1), or a law officer referred to in-
sub-section (2), is, for any reason, temporarily unable to conduct proceedings before the Special Judge 
or, as the case may be, the Special Appellate Court, the proceedings shall be conducted by such person 
as may be appointed in this behalf by the Special Judge or, as the case may be, Special Appellate Court. 
48. Indemnity . No suit, prosecution or other proceedings shall lie against the Federal 
Government or a Provincial Government or any officer of t he Federal Government or of a Provincial 
Government for anything in good faith done or intended to be done in pursuance of this Act or the 
rules made there under. 
49. Act to override other laws . The provisions of this Act except those of Chapter VI, shall 
have effect notwithstanding anything contained in any other law for the time being in force.  
50. Power to make rules .___ (1) The Federal Government may, by notification in the official 
Gazette, make rules for carrying out the purposes of this Act. 
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may 
provide for all or any of the following matters, namely:___ 
(a)  the administration, management and disposal of the property forfeited under 
Chapter IV;  
(b)  the powers of a Civil Court that may be exercised by the Special Judge and the 
Special Appellate Tribunal;  
(c)  terms and conditions of Special Prosecutors; and  
(d)  any other matter which is to be, or may be, prescribed. 
51. [Chapter VI. Amendment of the Customs Act, 1969] Omitted by the Federal Laws 
(Revision and Declaration) Ordinance, 1981 (XXVII of 1981), s. 3 and Sch., II.  
52. [Repeal] Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981 (XXVII 
of 1981), s. 3 and Sch., II. 
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         Last uploaded on 25.9.2023