KARACHI: Two constitutional petitions filed by Amal Steel, Karachi for in bonding of goods under section 84 of the Customs Act 1969 were decided by a divisional bench of High Court of Sindh directing the custom collectorate (Appraisement) East to process the petitioner’s application under section 84 of the Customs Act 1969 for moving the imported goods into bond in line with section 86 of the Act.
The petitions were filed through noted law firm Franklin Law Associates. The counsel for the petitioner argued that imported filed Goods Declarations under section 79 of the Customs Act 1969 for ware housing of imported ‘Prime Aluzinc Steel Coils, Grade’. The customs after examination made a contravention report leading to an Order in Original in both cases (two consignments) holding the petitioner / importer liable for mis-declaration. The goods were confiscated while giving an option of redemption of goods under section 181 of the act.
The petitioners filed appeals before the Customs Appellate Tribunal.
Moving the Sindh High Court, petitioner raised grievance that while appeals are pending before the tribunal, Collector of Customs (Appraisement) East has with-held orders on the Petitioner’s application filed under section 84 of the Act for moving the goods to a bonded ware house and as a result Petitioner is incurring demurrage charges day to day.
Sardar Zafar Hussain, counsel for customs department submitted that since orders for confiscating the goods have not been suspended by the Appellate tribunal, the goods cannot be moved into bond until the Petitioner redeems the goods by paying duty, taxes, fine and penalty determined as per Order in Original.
The bench after detailed hearing observed that counsel for customs has not cited any provision of the Act that requires the importer to pay the fine in lieu of confiscation of goods (under section 181 of the Customs Act 1969) before moving the goods to a bonded ware house pursuant to section 84 of the Act. The bench held that rather the section 104 of the Act suggests that all charges payable in respect of goods can be paid within the time fixed for ware housing by section 98 of the Act.
“Needless to state that moving of the goods to a bonded ware house would not amount to delivery to the Petitioner, rather it intended to mitigate demurrage charges being incurred by the Petitioner at the port” the bench observed while disposing of the petitions with directions to the collectorate concerned to process the application of Petitioner filed under section 84 of the Customs Act 1969.
Amal Steel, Karachi.
Federal Secretary Finance. Collector of custom appraisement, East, Deputy Collector.