FTO’s directive to CBR

Published April 22, 2003

ISLAMABAD, April 21: The Federal Tax Ombudsman (FTO), Justice (Retd) Saleem Akhtar has asked the chairman Central Board of Revenue (CBR) to take notice of the manners in which exporters are harassed and involved in unnecessary litigation by the customs authorities.

According to an official announcement issued on Monday, the decision was taken on the complaint of Sky International, Karachi, who alleged the collector of customs (Exports) detained and seized their goods for the last two and a half year.

The complainant stated that they filed a bill of export for 26 packages containing ladies wedding suits valued at Rs1.861 million for shipment to UAE.

The shipment was not allowed, and a contravention case for mis-declaration of value was instituted against them.

The collector (Adjudication) decided the case against them releasing the goods on payment of a fine of Rs3,00,000 and imposing a penalty of Rs250,000.

On appeal of the complainant, the collector adjudication ordered vacation of the show cause notice with the direction to return the goods to the owner.

The FTO said that goods were not released to the owner even after decision of the collector.

After detaining the goods for two and a half years, which should have been returned

to the owner in the first instance, the demand of the warehouse rent by the customs authorities was simply unacceptable.

The storage charge was the liability of the department and not the liability of the owner of the goods, he said.

The FTO further said that these are clear instances of mal- administration as defined under section 2 of the establishment of the office of FTO ordinance 2001.