FBR ISSUES INSTRUCTIONS: GANG TRYING TO ILLEGALLY IMPORT CARS
The Federal Board of Revenue has unearthed a gang of importers at Karachi, who are making repeated attempts to import more than five years old vehicles, reflecting a blatant violation of the Import Policy Order 2009. In this connection, the FBR here on Monday issued instructions to all the Collectors of Customs, Model Customs Collectorates to take strict measures and start vigilance at ports to avert such kind of attempts to import more than five years old vehicles.
The FBR has found that the vehicles manufactured beyond January 2007, are not importable and hence the import of Model 2006 vehicles is not only against the clear provisions of Import Policy Order but its clearance by the customs staff tantamount to criminal negligence. The FBR has further directed the Collectors of Customs to immediately take appropriate action when and where required to check such kind of imports of old and used cars in violation of the laid down rules and regulations.
The racket has been detected by Model Customs Collectorate, Appraisement Karachi and necessary instructions have been issued to the field formations to check violations of Import Policy Order 2009 during import of old and used vehicles in the country.
According to the FBR's instructions to the field formations, a credible information was received regarding the existence and criminal operations of a racket trying to import vehicles in breach of conditions laid down in Appendix-E of the Import Policy Order 2009. The modus operandi, as informed, was the manipulation of year of manufacture of imported vehicles by importers and Bonded Carriers. In order to thwart any such attempt, the chassis numbers of 37 imported vehicles destined for MCC-Peshawar under transhipment (TPs), were intercepted and scrutinised in the Model Customs Collectorate, Appraisement Karachi. As a result thereof it was confirmed that all 37 imported vehicles were manufactured in 2006, which are otherwise not importable as per the provision of the Import Policy Order which strictly prohibits the import of vehicles being older than five years.
The import of vehicles under Personal Baggage, Transfer of Residence and Gift Schemes is strictly regulated in accordance with the provision of Appendix-E of the Import Policy Order, 2009. The relevant portion thereof is reproduced as under, for ease of reference:
"3. Conditions of Import.-(1) Vehicles more than five years old shall not be allowed to be imported under gift, personal baggage and transfer of residence schemes, but this condition shall not apply to second-hand or used bullet proof vehicles, if imported under these schemes."
Further explanation regarding the calculation of age of the vehicle has also been made in Appendix-E of Import Policy Order, which reads that: "Explanation.-The age of the vehicle shall be determined from the 1st January of the year subsequent to the year of manufacture till the date of shipment as per Bill of Lading," it added.
From the above legal position it is clear that while assessing in the year 2012, the vehicles manufactured beyond January, 2007, are not importable and hence the import of Model 2006 vehicles is not only against the clear provisions of Import Policy Order but its clearance by the Customs staff, on any pretext, would tantamount to a criminal act. In this particular case first "system hold" was placed on all the above referred vehicles which have been listed out in the relevant list. Realising the sensitivity of the matter and after thorough examination of the issue involved, it was decided that Transshipment Permit in all such cases may be allowed after pointing out the violations detected during processing of the Transshipment Permit of these vehicles. Accordingly all their vehicles have been allowed to proceed to Peshawar Dry Port.
Keeping in view the stated legal provisions, all the customs import clearance Collectorates are under legal obligation to implement the stated provisions of the Import Policy Order by inferring its straight and simple meanings. In case of any ambiguity Ministry of Commerce is the only authority which can issue any clarification or extension in the time period of any vehicle, on case to case basis. The details of 37 vehicles are being forwarded to MCC-Peshawar for processing each case in accordance with the provision of the Customs Act, 1969, and Import Policy Order, 2009.
The FBR has directed the Collector MCC-Peshawar to apprise the legal position/status of these vehicles, which are liable to adjudication and outright confiscation, to all relevant staff members and ultimate action taken against these vehicles must be reported to this Collectorate along with the FBR, FBR's instructions added.