Delay in Clearance of Goods by Custom Department Resulted in Huge Loss: FTO issued directions against maladministration by the Customs and Shipping Authorities

Islamabad 25-06-2024: The complaint filed against customs authorities and a shipping line for the delayed release of imported goods, specifically Silico Manganese, by the complainant. The complainant imported Silico Manganese but faced delays in clearance due to financial issues related to LC and USD shortages. This led to heavy demurrage charges paid to the Shipping Line and Customs Duties totaling Rs. 4.543 million. Customs cleared the goods on January 3, 2024, after scrutiny and lab testing. Despite this, the shipping line did not issue a Delivery Order (DO) citing outstanding payments.

The case was heard multiple times, involving submissions and hearings from both parties. The Shipping Line claimed outstanding dues from the complainant, while the complainant argued all payments were made, as evidenced by pay orders. The Customs Authorities and the Shipping Line failed to resolve the issue despite directives from the Federal Tax Ombudsman (FTO). It was found that the shipping line had acknowledged receiving payment for detention charges but did not issue the DO/NOC required for release. 

The FTO recommended initiating proceedings against customs officers for failure to resolve the issue promptly. Also directing the Customs Authorities to release the goods upon fulfillment of legal requirements and issued directions to the Shipping Line for DO issuance or facing license suspension for violating customs rules.

The FTO found maladministration by the Customs and Shipping Authorities for not facilitating the timely release of goods despite receiving all required payments. Recommendations were made to rectify the situation and ensure compliance within a specified time frame.

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