Karachi, October 22, 2023 – Pakistan Customs has reaffirmed the government’s commitment to addressing the issue of under-invoicing.
(more…)Tag: under-invoicing
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Customs launches investigation into clearance of automotive spare parts at lower values
KARACHI: Pakistan Customs has launched investigation against officers for allowing clearance of automotive spare parts at lower values.
Model Customs Collectorate of Appraisement & Facilitation (West) constituted a committee to ascertain the role of examining and assessment officers in clearance and assessment of spark plug, bearings and parts thereof at lower values without taking into consideration constituent material in case of spark plugs and without proper application of valuation ruling in case of ball bearing and parts thereof.
The committee is comprised of officers including Zubair Shah, Additional Collector (Headquarters), Ms. Arma Hassan, Deputy Director and Ms. Quratulain Ramay, Assistant Collector.
The committee has been direct to finalize its report by first week of November 2020 and give recommendations including names of the delinquent officers to proceed further in the matter.
Sources in Pakistan Customs said that large scale under invoicing and mis declaration had been detected on the clearance of imported automotive spare parts.
They said that customs collectorates had issued guidelines to examination and assessment staff to ensure true and correct value to be applied while allowing clearance of spare parts, including ball bearing and spark plugs.
On the other hand Pakistan Automobile Spare Parts Importers & Dealers Association (PASPIDA) issued a statement on Saturday criticizing customs authorities for harassing importers.
Muhammad Shaheen, Acting Secretary, PASPIDA, while referring to several complaints received from PASPIDA members, said that Customs Authorities at Karachi Port have unusually held bearing consignments and were unnecessarily lingering customs procedures which were resulting in causing heavy demurrages, detention, wharfage and other losses to customers’ account.
In a statement issued, PASPIDA Secretary said that the Customs Authorities are taking undue time in all steps of clearance; examination, appraisement and adjudication (if applicable). “We have received many complaints of unfair examination reports, which are made to pressurize importers and put their matters in contravention. The attitude of custom authorities towards our importers is disrespectful and all sorts of tactics to harass importers are being used,” he added.
Muhammad Shaheen stated that Customs Authorities were also harassing Bearing Importers whose goods are not at the port but have been cleared in the past. “We have also received complaints of phone calls to importers with threat of criminal proceeding if they do not show up at custom house and submit the recovery amount.”
He urged the Customs Authorities to stop this blackmailing and even if there was an issue in the clearances done in past, they should issue show cause to importers instead of threatening them by making phone calls, and also investigate internally their own examiners and appraisers who cleared the goods.
“This unnecessary hold and harassment must stop. It has already caused losses and has become a major reason for mental torture to importers and it will only cause more trouble, if prolonged further.” Secretary PASPIDA opined that this was all being done by some powerful people involved in bearing trade in order to sabotage the entire bearings business in Pakistan, wipe out competition and pave way for smuggling.
He requested Chairman FBR & Chief Collector to take this matter seriously by acting strictly against concerned ACs/DCs/Appraisers and all those involved in harassing Bearing Importers and delaying bearings’ Customs Clearance.
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FBR warns stern action against under-invoicing, mis-declaration
ISLAMABAD: Federal Board of Revenue (FBR) has decided to launch drive against manufacturers and importers indulged in under invoicing and incurring huge revenue losses to national exchequer.
FBR chairman Syed Shabbar Zaidi, in a statement, warned such manufacturers and importers to abstain from misdeclaration and under-invoicing.
The statement said that the smuggling was the greatest menace but under-invocing and misdeclaration of imported goods were also depriving the country from actual revenue collection.
The chairman warned manufacturers and importers that in case misreporting or under-invoicing was detected then stern action would be taken under relevant provisions of laws.
The statement said that smuggled goods have badly dented the local manufacturing. The prime minister noticed the huge quantum of smuggling and directed the authorities to take all measures to stop the menace.
In order to comply with the directives of the prime minister, Pakistan Customs enhanced the enforcement against illegal movements of goods.
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Customs initiates examining exporters to check under-invoicing, mis-declaration
KARACHI: Pakistan Customs has initiated examination of exporters’ profiles to check mis-declaration and under-invoicing for plugging revenue leakages.
A statement said on Friday that the chairman of Federal Board of Revenue (FBR) Shabbar Zaidi had directed to identify the extent of mis-invoicing in export declarations in order to ascertain the suspected items or sectors and destinations for such mis-declaration, and to categorize exporters on the basis of risk profiling by segregating compliant exporters from those engaged in mis-invoicing.
The Customs Operations wing has tasked the Director General Customs Valuation to submit a report in this regard.
It has been further directed to develop a risk based system to intercept this trend without compromising export facilitation. Punitive action shall be taken against unscrupulous exporters under the proposed Section 32 C of the Customs Act, 1969 and the allied laws.
This initiative has arisen in the backdrop of reports indicating mis-invoicing in exports, which includes under-invoicing resulting in loss of remittance of forex and over-invoicing used to transfer excessive funds abroad.
Under-invoicing could be used also possibly as a mechanism for trade-based money laundering. One of the suspected methods used in under-invoicing in exports is through the medium of via port cargo.
Export cargoes are mis-declared by under-invoicing the values of export commodities, and shipped to a via port wherein new declaration with actual values are re-shipped for a final destination.
As a consequence, lesser amount of foreign exchange is remitted to Pakistan and a major portion of export proceeds is retained in the other country.