Disposal of confiscated vehicles: FTO directs FBR to approach ECC

ISLAMABAD: Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to approach the Economic Coordination Committee (ECC) of the Cabinet for the disposal of confiscated vehicles with tempered chassis numbers to the registered philanthropic organizations for carrying out philanthropic activities.

This has been recommended in the FTO’s special report to the Board on the stuck-up auctionable goods/ vehicles pending with the FBR.

According to the FTO report, a major exercise was conducted on the directions of the FTO to identify the magnitude of pendency of stuck-up auctionable goods/ vehicles pending with the Department of Customs, FBR, for last five years basically pertaining to large quantity of confiscated or otherwise goods and vehicles laying un-disposed at Customs formations all over the country, involving stuck up revenue of billions of rupees in contradiction to the existing Customs Laws, Rules, Customs General Orders (CGOs) and instructions provided for expeditious disposal and auctions of such goods/ vehicles and the Customs authorities were not disposing these goods and vehicles having tampered and non tampered chassis numbers as required under the law.

At certain Customs Collectorates, the goods/ vehicles have been offered for auction up to 40 times but still not disposed of. In addition to this alarming pendency in case of auction-able lots, other non-auction-able goods and cut & weld/ tempered vehicles were also not being disposed of, leading to colossal loss to the federal exchequer.

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It was also noted that the Economic Coordination Committee (ECC)’s decision in Case No.44/3/2006 dated 03.03.2006 materialized in the shape of CGO 05/2018 dated 24.05.2018 but in its eligibility criteria at para 2, the said CGO is silent about the disposal of confiscated vehicles with tempered chassis number to the registered philanthropic organizations, to the extent of vehicles having relevance to their philanthropic activities.

In view of the above detailed analysis, FTO Secretariat has recommended to the Customs Department, FBR to direct the Collectors/ Directors concerned to do away with the huge pendency of auction-able goods/ vehicles and other goods ripe for disposal under the relevant provisions of law, within 60 days.

FBR Member Customs (Operations) should personally monitor the above activity and disciplinary action to be initiated under E&D Rules, 2020, against the Collectors/ Directors who fail to comply with the directions.

The FBR should ensure the Collectors/ Directors get the reserve price of the lots revised after every three consecutive auctions, if found un-disposed. Necessary provision to this effect is also required to be incorporated under the Rule 58(2A) of the Customs Rules ibid.

The FBR should take up the matter before the ECC to consider for approval, appropriate modification in para 2 of CGO 5/2018 dated 24.05.2018 (ECC’s decision No.44/3/2006 dated 03.03.2006) for inclusion of registered Philanthropic Organizations of good standing, to the extent of vehicles having relevance to their philanthropic activities.

As a result of the above working and on implementation of FTO’s referred recommendations, the Deptt of Customs has disposed of 2690 lots and has realized an amount of Rs.4.6 billion, FTO report added.

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