Seized goods at Collectorates of Customs: FTO takes notice of absence of e-auction facility

ISLAMABAD: The Federal Tax Ombudsman (FTO) has taken serious notice of the absence of the facility of electronic auction (e-auction) of seized goods at the newly-established Collectorates of Customs by the Federal Board of Revenue (FBR).

At the new Collectorates, the auction of goods could only be performed manually through public auction as the Collectorates are facing issues in respect of the processing of overstayed consignments which are physically lying at the SAPT.

According to an order issued by the FTO on Monday, the complaint was filed against the Director, Directorate of Reforms and Automation, Karachi and the Collector, Collectorate of Customs (Appraisement-East), Custom House, Karachi regarding the non-availability/visibility of e-Auction containers for publishing and processing of online bids due to creation of new Collectorate.

Precisely, the facts of the case are that, recently, a new Collectorate named as Collectorate of Customs (Appraisement-SAPT) was launched. After the launch of the Collectorate, all the e-auction containers pending at KAPE having SAPT terminal were not visible to any Collectorate for publishing and processing of bids.

The complaint was referred to the secretary Revenue Division, for comments, in terms of Section 10(4) of the FTO Ordinance, read with Section 9(1) of the Federal Ombudsmen Institutional Reforms Act, 2013.

In response, the Collector, Collectorate of Customs (Appraisement-SAPT), Custom House, Karachi, informed that the Auction Cell of the Collectorate of Customs (Appraisement-SAPT) was facing issues in respect of the processing of overstayed consignments which were physically lying at SAPT but were manifested in the Collectorate of Customs (Appraisement-East) with Import General Manifest (IGM) having prefix of Appraisement-East i.e. "KAPE" because of the arrival of their respective vessel before the establishment of Appraisement-SAPT.

These overstayed consignments (after 25 days from their arrival in Pakistan) were assigned e-Auction related respective GD number with specific prefix of Appraisement-East i.e. "KAPE- AD" in the system and their IGM indices were utilised in these e-auction GDs.

When an IGM index or Bill of Lading was utilized in WeBOC System for either e-Auction GD or Section 79 GD for clearance by the importer through self-declaration, it could not be used for any other GD unless such GD was cancelled and IGM Index was freed. After the operationalization of Appraisement-SAPT in WeBOC System from 15.02.2023, the Auction Section of Appraisement-SAPT shortlisted all such IGM indices/Lots which had been assigned e-auction GD number in Appraisement-East.

Though all these consignments were ripe for auction, but as described above, these could not be processed further in WeBOC System of Appraisement-SAPT as their IGM had already been utilized.

Such e-auction GDs which were held in Appraisement-East WeBOC System were at first required to be cancelled by the Management Information System (MIS) Section of the Appraisement-East before being placed under the auction process.

It was also informed that even after freeing of IGM Index of these consignments in the system through the cancellation of their e-auction GDs by Appraisement-East, the Appraisement-SAPT was unable to perform e-auction of these lots as IGMs which become available in the system after the cancellation of e-auction GD could not be re-assigned another e-auction GD number (in any Collectorate) due to limitation of current e-Auction Module.

The auction of the above-mentioned goods could only be performed manually through public auction. Against this backdrop, coordination through correspondence was made with Appraisement-East for the prompt removal of auction holds/cancellation of KAPE-AD GDs. So far auction hold on most of such GDS had been removed and the same were in the process either in Examination, Reserved Price Fixation or Legal Verification as per the requirements of the manual auction procedure.

After completion of all such formalities, the said lots would be put for manual auction. The lots which were assigned with Import General Manifest (IGM) having the prefix of Appraisement-SAPT i.e. "KAPS-AD" would be auctioned through e-Auction Module.

There were certain auction-able lots lying physically in SAPT but IGM numbers etc. were of Appraisement-East. They were trying to resolve the issue through conducting regular auction instead of e-auction. Both officers were directed to submit a detailed report on the aforesaid issue to this Office.

According to the findings of the FTO office, the Auction Cell of the Collectorate of Customs (Appraisement-SAPT) is facing issues in respect of the processing of overstayed consignments which are physically lying at SAPT but are manifested in the Collectorate of Customs (Appraisement-East) with IGM having prefix of Appraisement-East i.e. "KAPE" because of the arrival of their respective vessel before the establishment of Appraisement-SAPT.

According to the department, they are trying to resolve the issue through conducting regular auction instead of e-auction. As such, no maladministration has been established on behalf of the department.

In view of the above, the FBR is to direct the Collector, Collectorate of Customs (Appraisement-East) and Collector, Collectorate of Customs (Appraisement-SAPT) to resolve the issue by mutual coordination with due assistance of the Directorate General of Reforms and Automation and do away with any auction pendency created as a consequence of the above-discussed technical glitches; and report compliance within 60 days, the FTO order added.

Copyright Business Recorder, 2023