State warehouses: FTO orders FBR to ensure safe custody of valuables

ISLAMABAD: The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to ensure safe custody of valuables in the state warehouses after the incidence of a huge quantity of stolen dollars from the State Warehouse (Valuable), Collectorate of Customs (Enforcement), Lahore.

According to an order issued by the FTO on Friday, the complaint was filed against the Collectors, Collectorate of Customs (Enforcement), Lahore and Collectorate of Customs (AIIA), Lahore, for the delay in paying/returning an amount of US$ 10,000 to the complainant, pursuant to Customs Appellate Tribunal’s Order dated 22.07.2022.

“The currency was seized in 2016 and the complainant was forced to run from pillar to post for almost seven years now but no relief was being given to him after getting order in his favour from CAT, Lahore”, the FTO regretted. The Customs Appellate Tribunal (CAT) ordered to release an amount of US$ 10,000 to the complainant. After passing of the CAT’s order, the Complainant approached D.C (Traffic), AIIA, Lahore for the release of currency US$ 10,000. The Customs, State Warehouse (Valuable), Collectorate of Customs (Enforcement), Lahore informed that the currency had been stolen from SWH (Valuable) and an FIR No 03/2020 dated 08.01.2020 had been lodged on misappropriation! theft and criminal proceedings were underway in Special Court of FIA.

The FTO has recommended the FBR Member (Admin) to proceed by taking this Order as an investigation report and initiate disciplinary proceedings under E&D Rules, 2020, by appointing an inquiry officer against the dealing and supervisory officers/officials concerned.

The FTO has directed the Director General I&I-Customs and Chief Collector of Customs (Enforcement) to jointly conduct an enquiry to examine/evaluate the rules/procedures for safe custody of valuable goods in the state warehouse and suggest corrective measures to be adopted and incorporated in law in such incidents of theft.

The FTO has directed Collector, Collectorate of Customs (Enforcement), Lahore to implement the orders of CAT dated 22.07.2022 and refund to the complainant an amount of US$ 10,000 or equivalent in Pak rupees on the current exchange rate. Moreover, compensate the complainant with an amount of Rs100,000 for his loss/damage in terms of Section 116 of the Customs Act,1969.

The FTO order added that the Collectorate’s comments are inconclusive and evasive as no specific road map, timeline for the recovery of stolen goods was provided. The goods were deposited in State Warehouse in 2016 and reportedly are missing since 2019. No timely legal action was initiated by the Collectorate for the recovery of stolen goods and redressal of grievances of the lawful owner of the goods. Section 116 of Customs Act, 1969 is abundantly clear as regards entitlement of compensation to the lawful owner on account of damage to goods due to the willful act or neglect of the Warehouse Keeper or Custom Officer. The Complainant has established misappropriation of his goods and Custom authorities have also confirmed that goods were missing after depositing in the State Warehouse. The lawful owner of goods cannot be deprived or kept waiting indefinitely for no fault of his due to complex chains of procedural/official formalities and is entitled to compensation in accordance with law. Maladministration is clearly established on part of the Department in terms of Section 2(3) of the FTO Ordinance, 2000, the FTO added.

Copyright Business Recorder, 2023