Currency smuggling: ARDC has no mandate to decide cases, rules FBR

ISLAMABAD: The Federal Board of Revenue (FBR) has ruled that the Alternate Dispute Resolution Committee (ARDC) has no mandate to decide the cases of currency smuggling registered under the Customs Act 1969.

The FBR has issued a clarification on the status of the applicability of the ADRC in cases of currency smuggling. The dispute resolution mechanism has no mandate to decide the cases of currency smuggling registered under the Customs Act 1969, FBR added.

An application was filed by a retired army officer from Rawalpindi asking FBR to transfer his currency smuggling case to the ARDC, a forum that decides cases related to tax disputes, including an offer of payment of duties and taxes to the FBR. In case of currency smuggling, there is no question of legal dispute arising between the taxpayer and the tax department.

The FBR communicated to the person about the implementation of the order dated August 2, 2024 passed by Member Technical Abdul Waheed Marwat and Member Judicial Chairman Hafiz Ansar ul Haq Customs Tribunal Islamabad.

It referred to his letter to Chairman FBR dated 6 August 2024 regarding the implementation of the order dated 2 August 2024 passed by Customs Appellate Tribunal, Islamabad.

The reply explained, “The case has been reviewed in detail, and comments/vires are motive from Collector, Collectorate of Customs Islamabad Airport as well. The competent authority has regretted your application for the constitution of ADRC under Section 195-C of Customs Act 1969 on the following grounds”.

It is a simple case of smuggling of currency that was seized as per Section 2(3), 16, & 139 of the Customs Act, 1969, and confiscated by the Collector (Adjudication), afterward. One of the pre-conditions for the constitution of ADRC and Sub Section 2 of Customs Act 1969 is as under:

The application for alternate dispute resolution under Sub-Section (1) shall be accompanied by an initial preposition for the resolution of the dispute, including an offer of payment of duties and taxes.

It clearly transpires that the forum of ADRC is a dispute resolution mechanism for litigation cases related to legal trade (Imports and Exports). It has no mandate to decide the cases of currency smuggling registered under the Customs Act 1969.

“You are therefore advised to pursue your case at the appropriate legal form Le. Customs Appellate Tribunal, Islamabad,” the reply added.

Sources said that customs authorities at Islamabad Airport seized $45,000 from him when he was traveling abroad. The law allows passengers to take $5,000 abroad, they added.

Copyright Business Recorder, 2024