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The Tax Reform Commission (TRC) has strongly recommended that all bonded carriers ought to carry tracking devices which can also include applying Radio-Frequency Identification (RFID) chips on their consignments. According to the final report of the TRC, the Commission suggested that all issued seals should be reconciled between both customs stations of entry and destination on monthly basis and on 6 monthly basis the reconciliation should be undertaken by Post Clearance Audit (PCA) unit or other independent unit of Pakistan Customs.
The TRC recommended that all consignments landed in Karachi should be cleared in Karachi as home consumption GDs and duty and taxes paid at the point of entry itself. If this is not possible, on urgent basis a protocol should be put in place, making it mandatory for all transshipment (TP) consignments to have tracking device and RFID device. The TRC recommended that a way to fix the problem of smuggling is to imply greater focus on rigorous enforcement, bilateral negotiations and greater co-ordination amongst different agencies responsible for combating smuggling. In view of multiple agencies, none takes it as its primary function and as such efficient accountability is not there.
The TRC suggested that FBR staff needs to change their negative attitude and develop a positive approach. So that bona fide importer develops trust in the FBR. The TRC recommended that all the cases in the region should be resolved at Chief Collector's level and only those cases should be referred to FBR by the Chief Collectors where a policy decision is required.
The TRC recommended fast track implementation of recommendations contained in August 2014 "Customs Compliance Risk Management: Gap Analysis and Roadmap for Implementation in Pakistan" USAID report was authored by Deloitte. It suggested that if there is an immediate requirement of an item for a project and the listed company is confirming delivery in 6-8 months, condition of local manufacture should be relaxed for the importer.
The TRC suggested to facilitate green channel importers their consignments under dispute when the RMS selects their consignments randomly under Yellow Channel and should be released either against an undertaking or corporate guarantee depending upon the nature of dispute.
The TRC recommended that the role of Principal Appraiser under WeBOC should be eliminated and principal appraiser should also be given assessment task. A robust RMS should be developed. It suggested that either 10-12 counters should be made for depositing duty or it should be allowed to deposit duty at any NBP branch anywhere throughout the country or at least within Karachi.
It recommended that a Review Committee consisting of representatives of local manufacturers, FPCCI, Importers Association, nominees of Customs Collectorates/the FBR be set up. The committee should be headed by DG Valuation in medium term to seek more input on valuation aspects and classification issues for Custom Agents Association.
It suggested that a help desk should be created at the collectorates from where the importer can get prior written confirmation of classification/ valuation of an item which he intends to import. This will be helpful in avoiding delays and losses due to classification disputes after the goods arrive.
The TRC recommended that in case of export shipments where Anti-Narcotics Force (ANF) is carrying out checking, custom drug check should be waived. In case of green channel companies even ANF check should be waived on the basis of an undertaking from the exporter if it is a green channel company. The same condition should be applied on import shipments. The TRC suggested that terminal operators should be bound to ground the containers for examination within 24 hours.
The TRC recommended that no adjudication process should be initiated and no extra duty should be recovered in cases where the weight is found to be more than declared weight if otherwise the declared value is more than the evidence on record. TRC suggested that custom agents list should be scrutinised. Licenses of those agents who are not performing should be cancelled. Also custom agents should be categorised into A-B-C categories considering past record, list of clients, volume of business being handled and education background of license holder. Facility of out of turn urgent hearing and acceptance of undertakings where required maybe extended to 'A' category agents. The TRC suggested in case of confiscated goods that after confiscation such goods should be first offered to the original importer on the determined price.
The TRC suggested that WeBOC registration should be made simple. TRC suggested that the FBR should not take more than two weeks to respond to a query by an importer/exporter or collectorates. All valuation ruling/advises should be made available on web within 24 hours after these are issued or under the WeBOC system the valuation fixed should appear on the screen against the claimed tariff classification.
All notification and amendment are fed under WeBOC within 24 hours after these are issued. There are numerous importers registered under WeBOC who do not hold Sales Tax Registration. ID's of all such importers should be blocked immediately. This would provide a fair playing field to compliant importers. The TRC suggested that import of all types of used machinery and spares should be allowed provided those are imported from importers own foreign exchange resources. The TRC suggested that in case of de blocking issue deadlines should be fixed and implemented for finalising the cases, it added.

Copyright Business Recorder, 2016

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