Some importers and customs agents evaded key validation checks in the WeBOC system to bypass the usual process of filing Goods Declarations (GDs). They were thus able to file GDs without an Electronic Import Form (EIF) and/or proper approval from banks or authorized dealers (AD) for open account transactions,
In EDI provided by Authorized Dealers to PSW, it was found that Al-Barka Steel Furnace colluded with their clearing agents to misuse WeBOC and PSW systems for fraudulent use of open account facility without permission of SBP. Their actions were in contravention of the SBP’s Foreign Exchange Manual, Chapter 13, Import Policy Order 2022, as well as other provisions of the Customs Act, 1969.
Collector of Customs Appeal Nyma Batool conducted an elaborate scrutiny of the case, heard both sides and allegations against the Clearance Collectorate are very serious-for tampering with or even hacking the PSW system. If such a charge is held correct, then it would indeed amount to compromising the integrity of the entire WeBOC system. The appellants also pleaded that adjudication was carried out by an officer who did not possess the authority given by the Customs Act, 1969, and therefore the entire process would be liable to be set aside.
They made a case before the Court that Section 179 of the Customs Act, 1969 dictates that an Assistant Collector of Customs has no jurisdiction to deal with violation cases under Sections 15 and 16 of the Act. They prayed for setting aside of the impugned orders and show-cause notices, so that the case could be dealt with by an officer with proper jurisdiction.
Furthermore, Section 179 (3) of the Customs Act, 1969, provides that if the case relates to any goods within a port or harbour area, then every such case shall be disposed of within a period of thirty days. In the instant case, the adjudication took 49 days though the same can be extended, if necessary.
The case has now been sent back to the Clearance Collectorate under Section 195 of the Customs Act, 1969. The case would once again be re-examined and decided by a competent authority. There is also a need for redressing the vulnerabilities in the PSW system to avoid such incidents in the future.
