A fight for life in mid-sea Customs officers threaten strike over new laws

The Government is to make Customs levies subject to challenge before the Tax Appeals Commission retrospectively from April 1, 2011.

This is one of two major amendments to the Customs Ordinance and they will be placed before Parliament for approval.

The move has already angered Customs officers. They are threatening to go on strike reportedly on the grounds that it would encourage big-time importers to evade tax. A senior Customs officer who did not wish to be identified said there would be a large revenue loss since importers who under-invoiced or resorted to various other malpractices would get away by making regular appeals rather than pay the levies.

On Friday, Customs officers stopped work from noon till evening protesting against the move. The officer said they had asked the Ministry of Finance to grant them a meeting before Wednesday to discuss issues.

In terms of the proposed amendment, if a dispute arises on the imposition or exemption of Customs duty on any goods, the importer or exporter could make an application “forthwith to the Director-General for determination”. If the DG fails to intimate his determination within 90 days, an appeal could be made directly to the Tax Appeals Commission.

This Commission, established in 2011, does not so far include the Customs Department. It deals with parties who are aggrieved over

the actions of the Department of Inland Revenue.

The proposed amendment requires that the Tax Appeals Commission reports on a complaint within 270 days. Another amendment seeks to make changes in the distribution of the reward money. At present officers are entitled to 50 per cent of the reward revenue which they share with informants and the officer ranks. The Ministry of Finance wants to extend this to other categories in the Customs Department.

In the event of the Tax Appeals Commission annulling a Customs levy, no rewards are to be paid to the officers.