It has been revealed that some importers and Customs agents have bypassed the standard procedure for filing Goods Declarations (GDs) by circumventing the inbuilt validation checks in the WeBOC system. This manipulation allowed them to file GDs without the mandatory Electronic Import Form (EIF) or proper Bank/Authorized Dealer (AD) authorization for open account transactions.
The Electronic Data Interchange (EDI) communicated by Authorized Dealers with Pakistan Single Window (PSW) confirmed that M/s. Al-Barka Steel Furnace (NTN No. 7489542), with the active connivance of their clearing agents, fraudulently manipulated the WeBOC and PSW systems to unauthorizedly avail the open account facility. This action contravened the State Bank of Pakistan’s (SBP) laws and regulations, specifically those outlined in Chapter 13 of the SBP Foreign Exchange Manual, the Import Policy Order 2022, and various sections of the Customs Act, 1969.
Nyma Batool, Collector of Customs Appeal, examined the case and heard the rival parties at length. The allegations against the Clearance Collectorate are of a serious nature, suggesting that the PSW system was manipulated or hacked. If proven true, this could compromise the entire WeBOC system. The appellants argued that the adjudication was carried out by an officer not having jurisdiction under the relevant sections of the Customs Act, 1969, thus making the proceedings null and void.
The appellants contended that Section 179 of the Customs Act, 1969, does not empower an Assistant Collector of Customs to conduct adjudication in matters pertaining to violations of Sections 15 and 16 of the Customs Act, 1969. They prayed to set aside the impugned Orders-in-Original and the Show Cause Notices, so that adjudication proceedings could commence afresh by an officer with competent jurisdiction.
Furthermore, according to Section 179 (3) of the Customs Act, 1969, cases where goods are at the port must be decided within thirty days. In this instance, the adjudication proceedings took 49 days, although the Collector can allow an extension for reasons beyond control.
The case has been remanded back to the Clearance Collectorate under Section 195 of the Customs Act, 1969, with directions to address the issue seriously and decide the cases afresh by a competent adjudicating authority. The lapses in the PSW system must also be addressed on priority to prevent future occurrences.