Verification of import/export documents: working group set up with China tax officials

The Federal Board of Revenue (FBR) and Chinese tax authorities have formed a working group to implement a digital system at Pakistan's ports for verification of imports and exports data, including original invoices, to check massive under-invoicing of Chinese goods.
Sources told Business Recorder on Tuesday that Pakistan delegation, headed by FBR chairman Abdullah Yusuf recently met tax authorities in China. Among other senior officials, Chief Collector of Customs North Shahid Rahim assisted the FBR chairman in China. The FBR delegation is expected to return on Wednesday after completion of negotiations with their Chinese counterpart.
It has been agreed to install a new digital system to verify import and export documents electronically between the two countries. The Chinese imports data, particularly invoices, could be verified through the computerised system.
The system would give direct access to Pakistan's customs officials, who could manage to check large-scale under-invoicing of Chinese goods. The original price/invoices of Chinese items and other details of the import consignments would be available to Pakistan's customs prior to reaching its destination.
The system would also be instrumental in reconciliation of imports and exports data between the two countries. Sources said that a delegation of Chinese customs would also visit Pakistan for effective implementation of the system from July 2008.
The FBR had found massive under-invoicing on import of items from China and UAE. According to an estimate, the FBR can generate an additional amount of Rs 40-50 billion customs duty by checking under-invoicing on the imports from these countries.
Sources said that most of the Chinese and UAE origin goods are being cleared from Pakistan Customs Computerised System (PACCS), Appraisement Karachi and Lahore Collectorates. The customs would pay special attention to the customs stations from where high volume of Chinese/UAE goods are cleared.
The bilateral trade between Pakistan and China would be resumed from May 1, 2008 through Sust dry port for which the FBR had finalised arrangements for electronic exchange of import/export data between the customs authorities of both countries. The FBR is already in the process of installing an "information exchange portal" for online connectivity with the Chinese customs. It would be a web-based customs data exchange facility for the customs officials of both countries.