Implementation of court orders: FTO terms delay by Customs 'maladministration'

Federal Tax Ombudsman (FTO) Dr Muhammad Shoaib Suddle has noted with concern the neglect, inattention and delay by the customs department in implementation of the high court orders saying this is nothing but maladministration of the customs officials.
In a recent order of the FTO, the case of M/s Nizami Wire Industries (Pvt) Ltd of Lahore has been declared as a clear case of maladministration of customs department. The FTO has ruled that prompt implementation of orders of the superior judiciary is a constitutional responsibility of every state functionary. Neglect, inattention and delay on the part of Customs in implementing the of high court order, after it has been confirmed by the apex court, is tantamount to maladministration in terms of Section 2(3)(ii) of the FTO Ordinance, 2000.
In this specific case, the high court held the Customs Department responsible for delay in clearance and directed it to bear the burden of demurrage charges. Details of the case revealed that the complaint has been filed alleging maladministration for illegal rejection of refund claim of demurrage charges filed by the complainant. The unit had imported a consignment of 256 coils of prime quality low carbon wire rods from UAE, and filed GD for customs clearance. At the time of examination, the Customs staff suspected that the goods were of secondary quality due to which the matter was referred to the Pakistan Steel Mills Karachi and the Peoples Steel Mills Karachi for expert opinion. The laboratory tests by both confirmed that the goods were of prime quality, as declared by the importer.
The Karachi Port Trust charged Rs 1,006,200/- from the importer on account of demurrage charges due to delayed clearance of goods. The Customs House Karachi on the request of importer issued delay and detention certificate for claiming refund of demurrage charges as delay was on account of dispute about quality of goods. But Karachi Port Trust did not accept the refund application of the Complainant. The Complainant contended that consignment of wire rods was not allowed clearance due to dispute in which he was not at fault. He requested for directions to the KPT to refund the demurrage charges. Or ask the Customs Department should compensate the loss as delay in clearance was on their part. The complaint was sent to the Revenue Division for comments in terms of Section 10(4) of the Establishment of the Office of the FTO Ordinance, 2000.
The Model Customs Collectorate, Karachi, in its comments received through the Revenue Division stated that quality of goods was not declared in the import documents. At the time of examination, most of the coils of wire rods were found rusty and these appeared to be of secondary quality. Further investigation about quality was made in good faith to amass more revenue. However, laboratory tests confirmed prime quality of goods as per declaration of the importer and delay and detention certificate was issued for waiver of demurrage charges to mitigate the hardship faced by the importer. The KPT authorities were bound to accept the delay and detention certificate to provide relief to the importer. The grievance of the Complainant was against the KPT authorities who were not allowing relief to him.
During the course of hearing, the AR submitted that the decision of the President on the representation of the KPT in complaint No 940-L/2006 was challenged by the Complainant in the Islamabad High Court Islamabad. The High Court held the Customs Department responsible for delay in clearance and directed it to bear the burden of demurrage charges. The Customs appeal filed in the Supreme Court of Pakistan against the decision of the Islamabad High Court was dismissed, and leave refused. The AR requested for directions to Customs Department to implement the orders of the Islamabad High Court. The departmental representative reiterated the arguments as contained in the comments received from the Revenue Division. FTO has directed the FBR to direct the concerned officials to refund the demurrage charges the Complainant paid to the KPT within 15 days and report compliance within 7 days thereafter.