FTO orders FBR to refund customs auction payments for deteriorated goods

Profit by Pakistan Today reported that Federal Tax Ombudsman Zafar Hijazi has instructed the Federal Board of Revenue to return payments for three customs auction lots. The direction followed the department’s confirmation that the goods had deteriorated while in storage. The Collector of Customs, Appraisement, Karachi, was told to complete the refunds promptly.

The dispute arose from a February 13, 2024 auction of 42 lots, with a total stated value of Rs72.89 million. The bidder took possession of 30 lots, while disagreements concerned the condition and delivery of the remaining 12, which were held in 16 containers. Customs had already returned earnest money for four lots and accepted that three fully paid lots were damaged, but it refused refunds for five others, saying they remained deliverable and had not been collected despite notices. The FTO said the auction’s as-is-where-is terms did not justify cancelling purchases simply because goods were unattractive, but found the department’s admission sufficient to support repayment for the three deteriorated lots.