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Chairman GST and Refund Sub-committee of Karachi Chamber of Commerce and Industry (KCCI) Mohammad Ibrahim Kasumbi has suggested that the items which are not usable and consumable in Afghanistan should be put on the negative list and should not be allowed to be imported under Afghan Transit Trade (ATT).
He said that the items such as plastic raw materials, chemicals, spares for various industries which do not exist in Afghanistan and have no market there are being imported under ATT. ATT has remained a contentious issue for many years and has been the cause of evasion and revenue leakages. Such leakages and loss of revenue could not take place without the connivance and abatement by individuals responsible to control and monitor the clearance of such cargo.
He further mentioned that so far it seems that a foolproof solution to this issue has not been found. Some of the measures suggested here can be helpful in monitoring the movement and transfer of cargo under ATT while preventing the evasion of Customs duty and taxes applicable in Pakistan.
He suggested that all cargo imported under ATT regime should be de-stuffed at Karachi port in designated areas for examination and evaluation as to whether the cargo is really meant to be used in Afghanistan.
2:-After due examination, cargo should be loaded into Special Containers designed for transportation to Afghanistan. Such containers should be distinctively coloured and equipped with electronic seals with trackers to ensure that they are not tempered during transit.
3:-Contract for transport of all ATT cargo should be given to either NLC or a private contractor who should provide Bank guarantees for the amount of Customs Duty, GST and other taxes applicable in Pakistan, in case the containers are tempered or cargo is not transported into Afghanistan.
4:-Postdated cheques for the amount of total incidence of duty and taxes applicable in Pakistan, from the importers under ATT regime at the time of release of cargo for transportation. The PDC should be returned after verification of documents and return of containers verifying that the cargo actually crossed the Pak-Afghan border.
5:-Inspection teams and FBR Check-posts be established en-route to prevent connivance. Substantial rewards be fixed for officers/inspectors who discover pilferage and foil the attempts to abuse ATT for smuggling.
6:-Items which are not usable and consumable in Afghanistan should be put on the negative list and should not be allowed to be imported under ATT. Items such as plastic raw materials, chemicals, spares for various industries which do not exist in Afghanistan and have no market there are being imported under ATT.

Copyright Business Recorder, 2013

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