LAHORE: The Federal Tax Ombudsman (FTO) has ordered an investigation into customs mismanagement on the part of officials in Lahore. This comes after complaints of delays in clearing two imported Prime Movers.
Background of the case
Salamat Ali of Middle East Construction Company filed a complaint with Syed Amjad Ali Shah. The complaint is that customs authorities delayed clearance of specialist vehicles for almost five years despite full compliance with all import conditions. The vehicles, which were imported from Dubai in 2019, were subjected to extended examinations and official hurdles, even after payment of duty and taxes in December 2024.
Findings by the Federal Tax Ombudsman
The inquiry by the FTO found that the customs department did not complete the assessment process in a timely manner, resulting in unnecessary demurrage charges and financial losses to the complainant. Moreover, Show Cause Notices were allegedly issued retrospectively in March 2025, several days after the filing of the complaint, and posed questions regarding procedural fairness.
Controversy over vehicle confiscation
The case took a turn for the worse when the customs officials impounded the vehicles on grounds of inconsistencies in the model year pursuant to Import Policy Order 2022. The complainant counters that the import should be evaluated under the policy of 2016, which was in effect at the time of acquisition.
Recommendations by the Federal Tax Ombudsman
The FTO has suggested a fact-finding inquiry against the concerned officials and action against them for misconduct if found. It also urged the Federal Board of Revenue (FBR) to take care so that any undue delay in appeal proceedings is waived, given the unprecedented delay in administration faced by the complainant.
Wider concerns regarding customs practices
The case brings into question the ongoing issues with customs procedure in Lahore, such as massive mis-declaration and under-invoicing. Through these methods, consignments have been cleared by mis-declaration and under-invoicing and then shipped back to Karachi. All this is a clear indication of how reforms need to be initiated and customs laws enforced more forcefully to prevent such malpractices and ensure fairness and transparency in the import process.
