Customs collectors directed to dispose of pending cases

CBR Chairman M Abdullah Yusuf has directed the collectors of customs to dispose of pending cases of importers, who submitted various types of financial securities like indemnity bond, post-dated cheque, corporate guarantee, undertaking, insurance/bank guarantee, pay order, etc.
Sources told Business Recorder on Monday that the issue came to light during the collector's conference when CBR Chairman inquired about release of bank guarantees submitted by importers. He directed the customs collectors to immediately release all pending bank guarantees, as the issue had been discussed in every collectors' conference.
It was also discussed that there were pending bank guarantees involving billions of rupees despite the fact that the condition of submitting 'installation customs certificate' has been waived. In certain cases, there are expired bank guarantees, which are still pending at the level of collectorates, sources said. The Chairman directed the customs officials to ensure release of pending bank guarantees without delay, they added.
It is worth mentioning that the Board had issued instructions to the Collectorate of Appraisement, Karachi, to chalk out a strategy to dispose of nearly 45,000 pending cases, where importers had offered financial securities, bank guarantees, etc. The business community had submitted securities and guarantees against provisional release of goods, without payment of duties and taxes. In other cases, guarantees were demanded on non-production of installation or consumption certificates under various CBR notifications.
Sector-wise analysis showed that a major portion of the old cases related to financial guarantees submitted by exploration and petroleum, textile and OEM sectors, captive power units, water and power projects, pharmaceutical companies, public sector organisations like Wapda, railway, Sui gas, PAEC, etc.
The strategy encompasses tracing out of files of age-old cases, sorting/enlistment of cases, SRO-wise as well as importer-wise tabulation, appraiser-wise distribution of cases, prioritisation of releasable/encashable cases, issuance of notices to importer and publication of advertisements for compiling requisite documents, retrieval and re-construction of missing files, creation of sector/importer-wise database of pending cases to expedite the liquidation process through establishment of close liaison with concerned importers, financial institutions, trade associations and bodies, chambers of commerce and industry and concerned Collectorates of Sales Tax and Federal Excise.
The major issues identified in these cases were either non-production of installation or consumption certificates or condonation of delay involved therein, non-furnishing of re-export proof and awaited rulings of CBR/EDB and non-finalisation of provisional assessments by the Collectorate, sources added.