FTO asks CBR to examine role of Customs Intelligence

The Federal Tax Ombudsman, Justice Munir A Sheikh, has asked Chairman, Central Board of Revenue (CBR) to examine the role of the Directorate of Customs Intelligence in cases of routine imports and exports not involving any misdeclaration or misstatement, and issue clear guidelines for the role of the Directorate in such imports and exports.
The FTO gave this direction on a complaint of Zorain Enterprises , Moin Steel Market Karachi, which had alleged unnecessary and unwarranted detention, of an imported consignment, by the Directorate-General of Customs Intelligence and Investigation, Karachi, which had been allowed "out of charge" by Customs on the pretext of misdeclaration of value and quantity, without any basis and cause.
The complainant stated that he had submitted copies of several orders of the superior courts and the Appellate Tribunal in identical cases where it was held that no officer of Customs Intelligence had the power to re-examine the goods already examined and assessed by appropriate Appraisement Officers, and the Intelligence Officers were not appropriate officers for the purpose of section 79, 80 and 83 of the Customs Act.
The FTO said since the Customs Intelligence Directorate has not submitted any legal and procedural justification for detention of a duty-paid consignment in which no discrepancy was detected, the CBR should call explanation of Customs Intelligence Karachi in respect of following issues:
i. In respect of a consignment which has been examined, assessment finalised by the customs, duty and taxes paid and 'out of charge' granted by the duly authorised customs officials, what authority does the Directorate-General of Customs Intelligence possess to detain the consignment, and whether any power in this regard has been delegated to it by the Revenue Division.
ii. When a consignment is detained by Customs Intelligence on some information, and on re-examination the goods are found to be in accordance with the declaration and the first examination report, what is the justification for not releasing it on basis of the 'out of charge' already given by the appraising staff and further detaining it for valuation check.
iii. Once the matter has been referred to the Valuation Directorate, further action would be taken by the valuation officials to determine the correct value, ascertain short levy of duty, if any, and take action under section 32 of the Customs Act with due process. The Directorate clearly has no role to play after reference to the Valuation Department, and there seems no justification to further detain the consignment.
iv. The Director of Customs Intelligence has not quoted the authority, the procedure or the law under which a post-dated cheque for double the amount of C&F value was obtained from the importer before allowing release of the consignment.
The FTO called upon the CBR to take serious view of the administrative excess committed in this case, and direct the Directorate of Customs Intelligence to furnish legal justification for its actions within thirty days of the receipt of this order.