Enforcement measures taken at ports: FBR expects Rs five billion additional revenue

The Federal Board of Revenue has estimated to collect additional revenue of Rs 5 billion in the form of customs duty following comprehensive administrative and enforcement measures to be applied at ports during the remaining months of 2010-11. Sources told Business Recorder here on Thursday that the field formations of customs wing have generated Rs 4.8 billion during the first six months of current fiscal year, which is in addition to the revenue collected through normal imports.
The addition in revenue during this period has been made possible through special administrative measures like improved valuation, checking misdeclaration and realizing revenue stuck up as arrears through aggressive pursuance of cases under litigation. This duty is also 22 percent higher than that collected under the same head on special initiative during July-December 2009-10.
Sharing future plans, sources said that to further improve these measures, the FBR has constituted special teams in field formations for recovery through perusal of arrears and court cases. The FBR has also increased monitoring of assessments/examinations by senior customs officers to check any wrongdoing at lower level. As a result of these improved measures, additional customs duty of Rs 5 billion is expected to be realised during the remaining six months of 2010-11.
Some of the administrative measures taken at the time of budget (2010-11) have also helped in generating additional revenue. For example, the valuation formula for the goods to be exported is simplified by amending section 25 of the Customs Act. The customs value determined under section 25A shall be applicable until and unless revised or superseded or rescinded by the competent authority. The section 25D was elaborated is elaborated by inserting the words "under section 25A" in order to clarify that review application before Director General Valuation shall lie in cases of the values determined by Director Valuation or Collector of Customs under section 25A. For filing a review application under section 25D, the time period of 30 days from the date of determination of customs value has been specified by amending section 25D. The section 27A of the Customs Act was amended to restrict the permission for mutilation or scrapping of certain goods, as notified by the Board, imported with scrap consignments in serviceable condition.
In section 32 of the Customs Act, in sub-section (5), a new clause (e) was added so that cognisance could be taken in cases where revenue is paid through self assessment in order to curb the tendency of misdeclaration and less payment of revenue through computerised clearance system. The section 32A, sub-section (1), clause (c) was amended by inserting the words and comma "payment of revenue through self-assessment," to curb the tendency of deliberate wrong self-assessments on the part of the importers.
Proviso to sub-section (1) of section 79 is amended in order to restrict the facility of filing of goods declaration after examining the goods by the importer only in case of used goods. Besides, the permission for filing of goods declaration after examination of goods can now only be granted by the Additional Collector. The section 81 of the Customs Act was amended in order to finalise the cases of provisional assessment within three months. The period during which the proceedings are adjourned on account of stay or for want of board's clarification or adjournment sought by importer, will be excluded from the said period.
Moreover, the general penalty was enhanced to the extent of Rs 50,000 and section 156 was amended to enhance the penalty to the extent of not less than twice the value of the offending goods besides the confiscation of goods for violation of section 128 and 129 of Customs Act, 1969. This penalty has created a deterrence vis-à-vis the smuggling of transit trade goods, sources added.