Pending insurance guarantee: FBR to block clearance of Afghan importers by September 10

Federal Board of Revenue (FBR) has decided to block the clearance of Afghan importers, if they fail to pay the pending insurance guarantee imposed on Afghan Transit (AT) cargos by September 10, 2012, Business Recorder learnt on Thursday.
According to sources, Afghan importers under Rule 621 of Afghan-Pakistan Transit Trade Agreement (APTTA) 2011, are required to submit duplicate copy of the Afghan Transit Goods Declarations (GDs) along with Afghan customs GD bearing cross reference of Pakistan's GD within 60 days of the date when AT cargos were discharged from the port to get insurance guarantees back from customs authority.
However, it was observed that the requisite duplicate copies of the listed Afghan Transit Goods Declarations, along with original Afghan customs GDs, complete in all respects, have not been received at customs authority, despite lapsing the aforesaid statutory time limit, they said. Keeping the said sluggish response from Afghan importers and their clearing agents in view, the FBR has asked them to submit all relevant documents in conformity with APTTA 2011 by August 31, 2012, the sources said.
Replying to a question, they said the board has also intimated Afghan importers and their clearing agents that if the said requirements will not be fulfilled or the amounts of duty/taxes involved in the pending insurance guarantees will not be submitted, further clearances of the defaulting Afghan importers would be blocked by September 10, 2012.
Meanwhile, the clearing agents of AT cargos termed the said decision as unjustified, saying that they have submitted the duplicate copy of Afghan Transit GDs but the customs department did not release the insurance guarantees, due to absence of original Afghan customs GDs.
Afaq Jamal, a leading clearing agent of AT cargos confirmed to have received such directives from FBR, saying that the decision would do nothing but create problems only for the clearing agents of AT cargos. He said that if the FBR blocked the clearance of Afghan importers, the latter could import its goods with different importer names and clearing agents. However, the said decision will directly affect the clearing agents of AT cargos as they will not be able to run their businesses.
He said the customs department has made the submission of original Afghan customs GDs mandatory for the release of insurance guarantees paid at the time of AT cargos clearance. On the other hand, the Afghan importers are reluctant to provide Afghan customs GDs to their Pakistani clearing agents because of under-invoicing culture.
He said the under-invoicing culture is epidemic in least-developed Afghanistan hence the highly taxed imported goods are cleared at nominal customs duty. For instance, the customs department collects substantial revenue on the imports of television and air conditioners while the same are declared as plastic box and cleared at nominal duty by Afghan customs.
Therefore, it is quite difficult to convince the Afghan importers for providing Afghan GDs to their Pakistani clearing agents for the release of insurance guarantees. He also urged the FBR to revisit its decision and make it viable to facilitate the stakeholders at maximum.