KARACHI, May 21: The Central Board of Revenue (CBR) has fixed a deadline of May 31 for the clearance of seized second hand buses and trucks imported under different schemes in completely built-up unit (CBU).
The CBR had been indecisive about the fate of these vehicles, numbering over 1,000, which were seized following issuance of SRO 255(I)/2007 dated March 17, thereby disallowing further import of used and reconditioned commercial vehicles with immediate effect.
A CBR spokesman, however, said that the deadline for clearance of vehicles had been fixed to avoid misuse of the facility by the importers.
As a result of this decision a large number of vehicles, which were booked prior to the issuance of SRO were also detained by the customs.
Since the CBR did not give a margin or a cut-off date for further import of such vehicles, a large number of buses and trucks, which were already booked or were on their way to the country’s ports were seized by the customs on their arrival. The import of these vehicles had been mostly funded by overseas Pakistanis and not a single dollar was used from the national kitty.
Prior to this, the CBR directed all the customs collectorates on May 10 to release these used and reconditioned buses and trucks on payment of taxes and duties along with the redemption fine. The CBR had also put some conditions with regard to furnishing of necessary documents to get these vehicles cleared.
However, the board on May 16 issued another notification directing all collectorates to release the seized buses and trucks by May 31, thereafter, all those vehicles not cleared by importers will be put to public auction.
But importers and owners of the detained vehicles are in a fix how to meet the harsh condition of furnishing a large number of documents for getting their vehicles released in a short period of 13 days (excluding weekly closure).
They argue that an earlier notification of the CBR did not give any deadline for clearing the seized vehicles but there was a condition of furnishing some documents to substantiate their date of purchase and loading over the ship for release vehicles by the customs authorities.
Normally, only a Bill of Lading or Goods Declaration (GD) is required for getting imported goods cleared because they carry all the necessary information with regard to loading date and port of loading etc. However, in the May 10 notification, the CBR has laid down a condition of furnishing some other documents, including Export General Manifest (EGM), Mate Receipt (MR), Carrier Bill of Lading, Load Port goods declaration showing engine and chassis number of vehicles.
A clearing agent Abdul Ghaffar Bhundi told Dawn that most of these documents have to be arranged from the port of loading and in this case the used and reconditioned vehicles have been mostly imported from Japan and Dubai. Consequently, it would not be possible for any importer to get these documents within 13 days to get the release of detained vehicles from customs.
A strong resentment is being shown by owners and importers of these vehicles who spend millions of rupees on the import of these vehicles but have to pay huge amount towards demurrage and detention money for no fault on their part.
According to customs agents around Rs320 million have been charged so far towards demurrage and detention money, which will directly go into the kitty of the terminal operators and shipping company at the cost of importers and owners of these vehicles.
Meanwhile, a CBR spokesman told Dawn that to fix a deadline for the clearance of these vehicles was necessary so ensure that no misuse of this facility takes place. He further said that most of these vehicles already reached country’s ports prior to the issuance of SRO 255 of March 17, 2007, disallowing further import of commercial vehicles.
The spokesman said that a ship from Japan reaches Karachi ports in 30 days and from Dubai only in three days. Consequently, there was a possibility that the relaxation in clearance of vehicles would have been misused. He also disclosed that the majority of such vehicles have been already cleared by the customs.
