MUHAMMAD RIAZ

LAHORE: The exporters have shown their grave concern over the arrest of their potential foreign clients on the charges of currency smuggling at the Allama Iqbal International Airport who have come to visit Pakistan for placing orders after physical inspection of manufacturing units.

Sources told Business Recorder on Wednesday that most of the importers used to visit Pakistan to evaluate exporters’ capacity and quality of their products at the manufacturing units.

During the last few weeks, a number of foreign customers carrying foreign currency beyond the specified limit of $10,000 were sent to Kot Lakhpat Jail on judicial remand after registering an FIR against them under Section 156 of the Customs Act 1969.

They were treated as currency smugglers for which punishment under the relevant section is imprisonment of 14 years, confiscation of currency, and fine which may not exceed 10 times, the sources claimed.

The foreigners, particularly Americans and Europeans, are already reluctant to visit Pakistan because of the prevailing security situation. “If the present attitude on the part of customs staff continued, who will come to Pakistan? The people from Asian countries will also stop visiting Pakistan,” businessmen in city apprehended.

The sources said the customs staff at the Lahore Airport treats foreign customers and currency smugglers equally without any distinction. Recently some extremely valuable customers of textile and non-textile from China and South Korea were arrested for carrying $8,000 and they were arrested under Section 156 of Customs Act 1969 as currency smugglers and were sent to Kot Lakhpat Jail on judicial remand, the sources claimed.

Such accused are sent to Special Judges of Customs who mostly kept them in jail till the time they confess their crime. In such a case, the whole amount including the allowable amount of $10,000 is confiscated and the poor passenger is asked to pay heavy fine to get his release.

In a similar case, a Korean importer who had donated huge amount during earth quake and floods was arrested at the Lahore Airport for carrying 18,000 dollars and sent to Kot Lakhpat Jail. He had to pay half a million rupees fine while his total 18,000 dollars were also confiscated to get him released, the sources said.

The Korean passenger requested the customs staff to allow him to go out and handover excess amount to his friend waiting outside. But instead of accepting his request, he was brought to Customs House at Nabah Road where he was locked up for a night to produce him in the court of Special Judge Customs next morning.

The present practice at the Lahore Airport will discourage valuable foreign customers to visit Pakistan and may cause irreparable loss to our exports. The practice at the Lahore Airport has started during last few months only and has caused serious damage to the export sector.

The local exporters while taking a serious note of the issue have requested the Federal Board of Revenue to treat the smugglers and the innocent people differently and follow the European model where they are awarded penalty only on excess amount, the sources added.

With a view to discourage outflow of foreign currency, any amount exceeding 10,000 dollars may be confiscated and passenger having no criminal history are released. However, in case of big quantity, the authorities may confiscate the entire amount and conduct further interrogation, if necessary.

The sources further pointed out that the passengers carrying over Rs 5000 are also treated very badly. This is also illogical as if someone is carrying few currency notes of Rs 5000 denomination, especially while leaving for countries like Iran, Syria, and Iraq where Pakistani currency is accepted, what harm it causes to our country, they wondered. The authorities need make some deliberations over the said issue and come up with rules and regulations accordingly. The government should take steps to create acceptance of our currency in maximum number of countries rather discouraging it, they suggested.

The sources demanded of the government to ensure that the customs laws, rules and regulations should be realistic and practical so that the country’s exports may not be affected.