The Federal Tax Ombudsman (FTO) has barred the Directorate General of Transit Trade Karachi from asking importer of frustrated cargo to submit a No Objection Certificate (NOC) from the State Bank of Pakistan (SBP) and Ministry of Commerce for change in the name of the consignee of Afghan transit goods for home consumption in Pakistan.
According to the FTO’s order issued on Friday, the said complaint was filed against the Directorate General of Transit Trade, Karachi in terms of Section 10(1) of the FTO Ordinance, 2000 for not allowing amendment of the consignee name under section 138 of the Customs Act, 1969.
Briefly, the case pertains to the amendment of IGM of imported goods that were originally meant for transit to Afghanistan. The consignee refused to accept the goods and authorized a Pakistani importer to import the goods. However, the Directorate General of Transit declined to allow the amendment of IGM.
The importer highlighted that there is no restriction under the law against the amendment of IGM, and release of frustrated cargo whether it be transit goods or those meant for home consumption in Pakistan. The importer further stated that the foreign exchange in respect of the said consignment has already been transferred to the consignor as confirmed by relevant banks.
Moreover, the amendment of the consignee name from the Afghan importer to the Pakistani importer is also covered under the provisions of Section 138 of the Customs Act, 1969. In view of the facts, it can be safely concluded that the recommendation of the Board to the Directorate General of Transit to ask the complainant to seek NOC from the State Bank and Ministry of Commerce before allowing amendment in consignee name and substitution of transit goods for home consumption in Pakistan is redundant, uncalled for and tantamount to subjecting the complainant to unnecessary hardship in the particular circumstances of the instant case, the FTO order said.
FTO has recommended the FBR to direct the Directorate General of Transit to allow amendment of the consignee name in order to enable the Complainant to file GD under Section 79 of the Customs Act, 1969.
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