Islamabad: The Federal Tax Ombudsman (FTO) has issued a directive calling for an inquiry into alleged maladministration by customs officials after repeated delays and disputes over the release of two imported Prime Movers.
The complaint, filed by Salamat Ali of Middle East Construction Company through representative Syed Amjad Ali Shah, alleges that customs officials withheld the clearance of specialized vehicles for nearly five years, despite meeting all necessary import requirements. The vehicles, imported from Dubai in 2019, were subjected to prolonged assessments and bureaucratic hurdles, even after duty and taxes were paid in December 2024.
According to the FTO’s findings, the customs department failed to finalize the assessment process in a timely manner, leading to excessive demurrage charges and financial losses for the complainant. Furthermore, Show Cause Notices were reportedly issued retroactively in March 2025, days after the complaint was lodged—raising concerns about procedural fairness.
The case took a controversial turn when customs authorities confiscated the vehicles outright, citing discrepancies in the model year as per the Import Policy Order 2022. However, the complainant argues that the import should be assessed under the 2016 policy, which was applicable at the time of purchase.
The FTO has recommended a fact-finding inquiry against the relevant officials and disciplinary action if misconduct is confirmed. It also advised the Federal Board of Revenue (FBR) to ensure that any delay in appeal proceedings is condoned, considering the extensive administrative delays faced by the complainant.
it maybe mentioned here that large scale mis-declaration and under-invoicing was going on in Lahore. Because of such leniency large number of consignments were going to Lahore where these were cleared through under-invoicing and mis-declaration and then transported back to Karachi.