According to a Recorder Report, the Central Board of Revenue has pre-empted the release of confiscated smuggled textile items against payment of duties and taxes. This has reference to enabling amendments to SRO 566(I)/2005 it announced through a notification issued the other day.
According to the amendments, the specified items encompass a whole range of textiles: Cotton, cotton yarn and fabrics; manmade yarn and fabrics and wool and woollen yarn and fabrics. It will be noted that the report quoted above has also pointed out that consequent upon enforcement of the amended SRO, the Collectorates of Customs would confiscate outright the specified items, thereby implying imposition of a blanket ban on the release of the entire range of confiscated textile items.
Needless to point out, this would mean that none of the specified items would be released on payment of redemption fine or duties and taxes. Perhaps, this had to be so because there is a range of banned items import of which can be legalised on payment of 30 percent redemption fine under the SRO 547(I)/2005.
But the question arises as to why the ban on release of smuggling prone confiscated items had to be textile specific. It was about this time last year, when the Revenue Board enabled owners of confiscated non-tampered vehicles, including smuggled cars imported in violation of personal baggage rules, transfer of residence and gift schemes, to legalise their four-wheelers on payment of 30 percent redemption fine.
In making that announcement, CBR had noted that smuggled vehicles were outright confiscated by the customs, with no option to their owners to get them released, even on payment of duty and taxes. And that was stated to have caused hardship to the buyers, as the vehicles also remained stuck up in litigation until sold by auction after final decision of pending cases.
This, it was then understood also resulted in deterioration in the condition and prices of the vehicles. As such, to facilitate the bona fide owners of the vehicles thus seized by the customs and involved in the process of adjudication, the CBR had empowered the adjudicating customs officers to release them on payment of 30 percent redemption fine in addition to duty and taxes.
That gesture, it was contended would provide an opportunity to the owners of the vehicles to get them released, thereby also enabling them to have them legally registered.
This scheme has been made applicable to cases in courts as well as to future cases to be framed, in this regard. It was, however, notified that no option to pay fine would be given in case of smuggled goods, excluding vehicles with non-tampered chassis frame. It was this part of the last year's notification that has been amended to make way for the new scheme.
Be that as it may, the situation as now obtaining would distinctly point to an anomaly, which does not appear to have been removed. It will be recalled that in the previous scheme the CBR had devised a separate procedure for disposal of confiscated tampered cars, vans, and buses.
Others were marked for sale to government departments. Now the board has specifically included cotton, cotton yarn and fabrics; manmade fabrics, manmade yarn and fabrics; wool, woollen yarn and fabrics in the list of smuggled items that cannot be released on payment of duties and taxes.
Moreover, it has been pointed out that, even if these items entered Pakistan from unauthorised routes, without payment of taxes, they would be liable to outright confiscation too. Again, in so far as disposal of confiscated items is concerned, it seems to have been ignored.
As for the need for isolation of the textile sector from the others, it has been stated that their smuggling had been damaging legitimate trading in these items. It will be noted that a number of other items are included in the list of smuggling-prone items. However, outright confiscation of textile specific items would certainly point to an anomaly earliest possible removal of which need hardly be overemphasised.