The Federal Board of Revenue has decided that the Alternative Dispute Resolution Commission (ARDC) has no mandate to decide cases of currency smuggling registered under the Customs Act of 1969.
The tax department maintained this position in response to an application from a retired major from Rawalpindi, who requested that the FBR transfer his currency smuggling case to the ARDC, a forum that resolves disputes, including offers of payment of duties and taxes.
The FBR communicated to Raja Hamayan Yousaf regarding the implementation of the order dated August 2, 2024, passed by Member Technical Abdul Waheed Marwat and Member Judicial Chairman Hafiz Ansar ul Haq of the Customs Tribunal in Islamabad.
“I am directed to refer to your letter to the Chairman of the FBR dated August 6, 2024, regarding the implementation of the order dated August 2, 2024, passed by the Customs Appellate Tribunal, Islamabad.”
The communication further added, “The case has been reviewed in detail, and comments/observations have been solicited from the Collector, Collectorate of Customs, Islamabad Airport, as well. The competent authority has regretted your application for the constitution of the ADRC under Section 195-C of the Customs Act of 1969 on the following grounds:
It is a straightforward case of currency smuggling that was seized as per Sections 2(3), 16, and 139 of the Customs Act of 1969 and subsequently confiscated by the Collector (Adjudication). One of the preconditions for the constitution of the ADRC under Subsection 2 of the Customs Act of 1969 is as follows:
- The application for alternative dispute resolution under Subsection (1) shall be accompanied by an initial proposition for the resolution of the dispute, including an offer of payment of duties and taxes.
- It clearly transpires that the forum of the ADRC is a dispute resolution mechanism for litigation cases related to legal trade (imports and exports). It has no mandate to decide cases of currency smuggling registered under the Customs Act of 1969.
“You are therefore advised to pursue your case at the appropriate legal forum, i.e., the Customs Appellate Tribunal, Islamabad,” it added.
It is pertinent to note that customs authorities at Islamabad Airport seized $45,000 from him when he was traveling abroad.
The law allows passengers to take $5,000 abroad.
