AGP detects short-realisation of duties through PaCCS

The Auditor General of Pakistan (AGP) has unearthed a unique phenomenon in the Pakistan Customs Computerised System (PaCCS) where customs valuation rulings have not been applied for accurate assessment of duties and taxes on the imported consignments.
It is learnt here on Tuesday that the AGP has detected short-realisation of duties and taxes due to non-application of valuation rulings by the system causing revenue loss of Rs 79.812 million. The AGP has recommended development of online connectivity with valuation rulings issued by the DG Valuation and PCA of Assessment Module of PaCCS. Without applying valuation rulings, the system cannot make proper assessment of duties and taxes on the imported goods.
According to valuation advises/rulings issued by the Director General Valuation falling under jurisdiction of FBR under Section 25-A of Customs Act, 1969, values for the purpose of customs duties and its allied taxes assessment has been fixed in respect of goods.
The AGP said that the scrutiny of system-generated record pertaining to imports for the years 2006-07 & 2007-08 produced by Collector Model Customs Collectorate (MCC)-PaCCS Karachi transpired that the subject goods, for which value for the purpose of customs duty assessment were fixed, had been cleared by the system without applying the said fixed values. Resultantly, government dues were short-assessed by the system and deposited by the importers accordingly thus depriving the government from its legitimate revenue of Rs 79.812 million. The amount involved may be recovered from the concerned quarters besides taking remedial measures by developing online connectivity with valuation rulings issued by the DG Valuation and PCA of Assessment Module of PaCCS.
Sources said that the MCC PaCCS intimated that Audit has specified 350 CRNs, which have been examined. It transpired that in respect of 197 CRNs, the value was correctly applied and no government dues were short levied. However, in respect of 153 CRNs the government dues have been re-assessed, where against recovery would be intimated once affected. Collector MCC PaCCS Karachi has informed the FBR that the GDs have been reassessed and recovery made good. The position has been verified by Audit team on January 11, 2011. In view of this, the audit objection be removed, Collector MCC PaCCS added.