Retailers possessing smuggled goods: FBR directs Collectors to take penal action

ISLAMABAD: The Federal Board of Revenue (FBR) has directed Collectors of Customs to take penal action against the retailer found in possession of smuggled goods.

According to the FBR’s instructions to the Model Customs Collectorates issued here on Friday, the smuggled goods are often found in huge quantities with the retailer; though Section 2(s)covers all aspects of smuggling of goods yet retailers often make plea and could not be made accountable for possession of the smuggled goods being not covered in the legal scheme.

Therefore, amendment has been made in Section 2(s) to bring more clarity and cover the retailer found in possession of smuggled goods.

The FBR stated that the penalty at SNo47A was added to persuade the importers to file GD at the earliest.

However, there are some genuine reasons such as fulfilling the requirements of Import Policy Order, NOCs from different entities etc, which may cause delay in filing of GD.

Moreover, the imposition of steep demurrage charges by the port authorities also discourages late filing of goods declaration.

Therefore, section has been amended by omitting SNo47A and consequently, increasing the ease of doing of business.

The smuggled goods are often found in huge quantities with the retailer; though Section 2(s) covers all aspects of smuggling of goods yet retailers often make plea and could not be made accountable for possession of the smuggled goods being not covered in the legal scheme.

Therefore, amendment has been made in Section 2(s) to bring more clarity and cover the retailer found in possession of smuggled goods.

Accordingly, a penal section may be added by amending SNo89 of Section 156, the FBR added.

The FBR stated that the conveyances/vehicles used for smuggling of goods are being used repeatedly and are released on payment of redemption fine.

To discourage unscrupulous elements having dedicated conveyances for smuggling, Section 157 has been amended, so that if a vehicle is apprehended third time for charge of smuggling it should not be released against a redemption fine.

To strengthen capabilities to deter, detect, and interdict illicit trafficking of nuclear and other radioactive materials at international border crossings, including borders checkpoints, airports and sea ports, internal locations and other controlled land and maritime borders, a new Section 3CCB has been inserted to provide for the new Directorate General, which will go a long way in prevention of smuggling of nuclear and radiological materials and averting any possibility of nuclear/ radiological terrorism and a strong domestic nuclear security architecture would be in harmony with the global nuclear security architecture, the FBR’s instructions added.

Copyright Business Recorder, 2021