Clearance of stolen imported cars declared illegal

ISLAMABAD: The Federal Board of Revenue’s Customs authorities’ decision about clearance of stolen imported cars under the Transfer of Residence, Baggage Scheme or Gift Scheme upon payment of redemption fine and taxes without following any legal provision has been declared illegal by the federal tax ombudsman.

In an Own Motion Investigation, the federal tax ombudsman Islamabad found that the decision taken in the Customs Conference held at the then CBR (FBR) on 02.08.2006 was illegal. The FTO’s investigation committee underlined that without following due legal procedures, such decisions will promote illegal import of stolen vehicles and facilitate international criminal activities. In this connection, the FTO issued notices to the Federal Board of Revenue. The FBR submitted a report that the Customs collectorates in Sialkot and Peshawar had cleared six and three such stolen imported vehicles in 2007 and 2013-14 respectively.

The FTO recommended the FBR to direct all Collectorates of Customs and other authorities concerned to stop these illegal practices forthwith. The Customs authorities were directed that the stolen imported vehicles either should have been returned to authorities of the country from where the vehicles were stolen after receiving occurring expenses or these vehicles should have been confiscated and disposed of through public auction. The committee also recommended the FBR to direct the MCC Sialkot to seize identified six vehicles and take appropriate legal action against the importers involved in such illegal businesses. The FTO ordered the authorities to submit a report within 45 days.

Earlier, the FTO took the Own Motion in connection with the decision taken in the Customs Conference held at the then CBR (FBR) on 02.08.2006, in which it was decided that the collectorates may clear stolen imported vehicles after imposition of 30 per cent redemption fine under the provision of the Customs Act 1969 while no action should be taken unless recognized agency of the foreign country approaches the government of Pakistan.