FTO directs suitable Customs currency declaration counter

Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah has directed the tax authorities to establish a Customs currency declaration counter at a suitable place, which should be first interaction point with the outgoing international passengers.

The FTO issued these directives in a case where complainants sought relief against ill-treatment by the airport security personnel and Customs officials.

Besides, the complainants also requested the FTO to direct the authorities to refund their Australian dollars.

According to an order passed by the FTO dated September 9, 2022, the complainants said they came from Australia to Pakistan along with 10 other family members to settle in Pakistan permanently.

However, due to the uncertain situation of the country, they decided to return, along with their brought in saved pension amount, equal to 147,000 dollars received from the Australian government on June 11, 2022.

The family came to Islamabad International Airport along with the amount for departure and after taking guidance from the Customs currency declaration center, they reached the entrance of the baggage hall. The Airport Security Force (ASF) staff, posted there, asked about the contents of the hand bag. In response, they declared that they carried 147,000 Australian dollars and want to get guidance from the Customs staff.

Instead of facilitating, the ASF staff started counting their currency and seized it and later, through Hawalgi Report of 131,900 Australian dollars handed the currency over to the Customs officials.

The Customs officials, in recovery memo declared 131,900 Australian dollars, while 15,150 Australian dollars were not returned. After couple of days and on their protest, the Customs officials, contacted and returned 4,950 Australian dollars instead of 15,150.

According to the complainants, as per the seizure report, creditable information was received by the Collector of Customs that an attempt will be made to smuggle foreign currency from Islamabad Airport on June 11, 2022 by flight No TK-710 (Turkish Airline), departing for Australia, whereas the complainants were travelling by flight No QR-616 and not through Turkish Airline and the purpose of institution of seizure report was to claim inadmissible reward from the government exchequer by the so-called seizure team.

The complainants prayed that directives should be issued for strict action regarding maladministration with a mala fide intention of seizing agencies and remaining stolen money be recovered.

The FTO in its findings observed that the ASF staff detected foreign currency from the hand bag of the complainants and on inquiry by the ASF staff, the entire amount of 147,000 Australian dollars was declared but the ASF detained the amount and made a Hawalgi report and then called the Customs staff and handed over the complainants foreign currency with the report for an amount of 131,900 Australian dollars to the Customs staff.

The complainants were not given any opportunity by the ASF staff to declare goods and currency before the Customs staff.

The FTO also observed that returning 4,950 Australian dollars by the Customs authorities to the complainants, while seizing the other chunk of the currency, in itself speaks volume of the weak legal footing of the seizure.

“Declaring one part of the currency legal, while seizing the other part of the same good (currency) makes the entire seizure exercise infructuous and bad in the eye of the law.”

The FTO directed the Federal Board of Revenue (FBR) to constitute a fact finding committee to investigate all the relevant Customs officials and initiate necessary disciplinary proceedings against those found guilty. The FBR has been asked to direct all the chief collectors of Customs, across the country, including the collector of Customs, Islamabad, to establish an functionalise a Customs currency declaration counter, in collaboration with the Civil Aviation Authority (CAA) at a suitable place but before the ASF counter, as a first point of interaction with the outgoing international passengers.