Ctg Customs' Tk11,000cr revenue stuck in backlogs of 29,000 cases

Around Tk11,000 crore in revenues of Chattogram Customs House is currently held up in an ever growing number of pending cases.

Over the last five decades, the number of pending cases in various legal forums, including the High Court, Appellate Division, Customs, Excise, and VAT Appellate Tribunals, has persistently grown. 

As of the most recent data for October, Chattogram Customs is presently entangled in 29,282 cases, with a substantial 9,338 cases pending with the High Court.

This backlog has raised concerns among both traders and customs authorities. They mutually emphasise the urgency of expediting the resolution of these cases for the collective benefit of the government and the business community.

According to Chattogram customs, to address this issue, the National Board of Revenue (NBR) has submitted a proposal to the Attorney General's Office, advocating for the establishment of a dedicated court to accelerate the resolution of customs-related cases. Once approved, this proposal holds the potential to enhance efficiency by facilitating the simultaneous handling of numerous cases.

Currently, when customs evasion or fraud is detected within an import invoice document, Customs Authorities respond by confiscating the implicated consignments. Penalties are imposed, ranging from 200% to a maximum of 400%, in proportion to the evaded revenue. Additionally, customs authorities apply an amortisation penalty, the severity of which depends on the specific nature of the offence.

Traders blamed persistent disputes between importers and customs officials for the significant surge in reported cases. Importers facing issues related to Harmonised System (HS) codes encounter substantial duties and fines.

The practice of revenue collection through fines should be reevaluated and reformed, they opined.

When imported goods are accompanied by inaccurate declarations and incorrect HS Codes, customs authorities initiate legal action against the respective importer.

Omar Hazzaz, president of the Chattogram Chamber of Commerce and Industry, stresses that the unresolved cases and the failure to collect revenue do not serve the interests of either customs authorities or the trading community. 

He urged a proactive approach by the NBR in handling customs disputes to prevent entanglement in prolonged litigation.

Hazzaz further emphasised the need to take legal action against dishonest traders found guilty of duty evasion while advocating against forcing traders into litigation due to inadvertent informational errors or HS code-related mistakes, which have led to unfortunate importer bankruptcies.

Barrister Badruzzman Munshi, the spokesperson and Deputy Commissioner of Chattogram Custom House, highlights that the ongoing customs cases include some dating back 50 years. Last fiscal year, a significant number of cases were successfully resolved with the support of the Attorney General's Office. "Our forthcoming focus is on resolving cases associated with bank guarantees. This concerted effort will lead to a reduction in the number of pending cases within the current financial year."

In 2012, the NBR introduced Alternative Dispute Resolution (ADR) to address revenue-related cases pending in the HC and Customs Appellate Tribunal. Under this approach, cases are resolved outside the courtroom environment, facilitated by a neutral mediator, and attended by both the importer and customs representative.

Effective ADR requires a cooperative mindset from both customs authorities and importers, with a willingness to reach resolutions of cases, traders said.