Delay in Import of Vehicle beyond the deadline specified under the Import Policy Order (IPO), 2016; FTO Orders the Customs Department to Cancel the Vehicle Auction and Restore it to the Complainant
Islamabad 31-10-2024: In a recent landmark decision, the Federal Tax Ombudsman (FTO) has directed the Collectorate of Customs Appraisement (West), Karachi, to reverse the auction of a Toyota Prius and return the vehicle to the original complainant. The judgment, delivered under the provisions of the Federal Tax Ombudsman (FTO), 2000, underscores the need for procedural fairness and respect for property rights within administrative actions.
The case originated when a complainant imported a Toyota Prius, which was delayed in shipment and arrived beyond the deadline specified under the Import Policy Order (IPO), 2016. The complainant applied for a condonation from the Ministry of Commerce to allow for the late arrival, yet before a decision was reached, customs authorities auctioned the vehicle, citing non-compliance with the IPO regulations.
The Federal Tax Ombudsman (FTO) highlighted several legal lapses by customs authorities, marking the action as “maladministration.” The judgment identified that customs authorities failed to:
- Await the Ministry of Commerce’s decision on the condonation request.
- Ensure compliance with Section 82 of the Customs Act, 1969, which mandates proper notification and procedural adherence in auction proceedings.
- Respect the complainant’s property rights as per Article 24(1) of the Constitution of Pakistan, which protects individuals from arbitrary property deprivation.
The judgment also stressed the duty of government bodies to consider pending applications and avoid hasty administrative actions. By not awaiting the ministry’s decision, customs compromised the complainant’s rights, leading to a violation of due process.
In response to these findings, the Federal Tax Ombudsman (FTO) directed the Federal Board of Revenue (FBR) to instruct the Collectorate of Customs to:
- Cancel the auction of the vehicle.
- Recover the vehicle from the buyer.
- Hand it back to the complainant as per the Ministry of Commerce’s import authorization, issued in August 2024.
The decision serves as a significant reminder for regulatory authorities to exercise patience and procedural diligence, particularly when issues of condonation or exemption are pending. It also reaffirms the Ombudsman’s role in safeguarding citizens’ rights against administrative overreach.
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