NewBiz Report

Birgunj

The Department of Customs has started an investigation against the officials at the Integrated Check Post in Birgunj who had given clearance to the processed palm oil by categorising it as crude oil.

The department made the discovery after testing the imported palm oil on suspicion that traders might have imported the processed palm oil in the name of crude oil.

The customs office had cleared the consignment of the palm oil imported by RMC Foods Pvt. Ltd. on July 9.

The officials had given the clearance without examining the oil, against the directive of the department. 

Dhundi Prasad Niraula, director general at the Department of Customs, confirmed that an officer and an examiner at the customs office were summoned to the department for investigation.

Officer Sunita Paudel and examiner Ramesh Majhi were asked in writing on July 14 to come to the department within 24 hours.

“There might be involvement of more individuals. Only an officer and an examiner could not have dared it,” said a high level official at the department.  

The Investigation and Compliance Branch under the Department of Customs has been asked to move the investigation forward and submit a report within three days, according to Niraula. 

Traders are found lying about their consignment as they are charged 10% import duty on crude palm oil and 15% on the processed one, department officials say.

The Department suspects an alliance among the customs officials and traders. 

Importers can get the clearance of the goods, whose sample is under examination, by keeping the additional revenue they are liable to pay as a security. However, Paudel and Majhi had given the clearance to the processed palm oil by collecting the revenue after categorising it as crude palm oil.

It was found out that an additional security of 5% was charged to the trader under the directive of Chief Customs Administrator Dilaram Panthi after the Department of Customs moved forward the investigation.

The office document showed that around Rs. 2.2 million was collected from the trader as 5 % customs duty and VAT on July 15, a day after the department wrote the letter summoning the officials. 

While the attempts to reach Panthi and Paudel for their comments on the matter were unsuccessful, the Information Officer at the Department of Customs Punya Bikram Khadka and Information Officer at Birgunj Customs Raghu Lal Karna said they were not aware about the matter. 

There is a legal provision of 200% fine on anyone found guilty of lying about the category while importing the palm oil.  

Meanwhile, individuals aware of the matter said that attempts were being made to protect the two officials from any proceedings as they happen to be the members of the employee union close to the ruling political party.

The investigation report is yet to come despite the end of the three-day deadline.