Karachi, May 23, 2024 — In a bid to protect importers from fraudulent activities by foreign suppliers, the Karachi Chamber of Commerce and Industry (KCCI) has presented a comprehensive plan to the tax authorities.
This proposal, part of the KCCI’s recommendations for the upcoming 2024-25 budget, aims to address significant discrepancies between contracted goods and actual shipments, which sometimes include garbage and waste, causing substantial financial losses for importers.
Recent incidents have highlighted the urgent need for reform, revealing that importers face severe challenges due to restrictions on drawing samples and examining goods before filing Goods Declarations. The KCCI has recommended allowing importers to conduct examinations in the presence of customs examiners before filing these declarations.
The KCCI’s proposal includes amending current provisions and rules to align with the Kyoto Convention. Specifically, Chapter 3, Clause 2.4, Standard 3.9 of the Kyoto Convention allows declarants to inspect goods and draw samples before lodging declarations. By aligning local regulations with these international standards, the KCCI believes importers will be better protected from fraudulent practices.
Currently, importers must pay and retire documents from banks without inspecting the goods, leaving them vulnerable to fraud with no recourse for losses. This situation has led to substantial financial strain on importers who receive substandard or incorrect shipments.
“The current system puts importers at a significant disadvantage,” said a member from KCCI. “By permitting inspections before filing Goods Declarations, we can ensure that the goods match the contracted terms, thereby preventing fraud and protecting our importers from undue losses.”
The KCCI emphasized that this proposal aims to prevent fraud by foreign suppliers, safeguard importers from financial losses, and preserve foreign exchange. By implementing these measures, the KCCI believes that importers will have greater confidence in the trade process, and the overall integrity of international trade practices will be enhanced.
Furthermore, the KCCI called for a collaborative approach between importers and customs authorities to ensure that these inspections are conducted efficiently and effectively. This collaboration is crucial to fostering a transparent and secure trading environment.
“The adoption of these measures will not only protect importers but also contribute to the overall economic stability of the country,” the KCCI member added. “It’s a proactive step towards ensuring fair trade practices and maintaining the trust of our business community.”
As the 2024-25 budget discussions approach, the KCCI’s recommendations are expected to play a pivotal role in shaping policies that enhance the security and reliability of import transactions. This initiative underscores the KCCI’s commitment to advocating for the interests of the business community and promoting sustainable economic growth.
