Dealing with the menace of under-invoicing 'Pak-China Connectivity Bus' to be launched by August

Pak-China Connectivity Bus, a system that links Pakistan Customs with Customs China to deal with the menace of under-invoicing, is going to be launched by July-August this calendar year. This was stated by Chief Collector Enforcement Muhammad Zahid Khokar along with Brigadier Muhammad Abuzar, Force Commander Anti Narcotics Force (ANF), Sindh during meeting with business community at Federation House here.
He said that all legal work including bidding process had been done and the system -Pak-China Connectivity Bus would be operational by July-August of current year and hoped that this system would help Pakistan Customs to curb the menace of under-invoicing. He said that customs with the assistance of the Frontier Constabulary (FC) had taken serious action against smugglers that led to increase in the volume of legal trade, despite facing decline in exports in term of foreign exchange. He said that customs had made seizure of smuggled goods worth Rs 7 billion in ongoing fiscal year as against the seizure of Rs 1.2 billion during last year.
Replying to a question, Khokhar assured the business community to release all pending rebate till 2016, which was roaming around Rs 10 billion by July 2016, saying that customs department was going to make a history by achieving its annual budgetary target in the mid of May hence they were willing to clear all pending rebate till 2016. Speaking at this occasion, CEO TDAP S.M Muneer said that price of leather, rice, textile and other products had seen upward trend recently in the international market.
He said that the exports had been declined due to lack of infrastructural facilities, heavy taxation, scarcity of water and electricity. Moreover, pending tax refund of Rs 300 billion and exports rebates of Rs 10 billion had also contributed in declining exports, he added. Praising the ANF he urged for collective efforts to strengthen the economy of the country. Addressing the meeting, Force Commander ANF Brigadier Muhammad Abuzar said that the ANF was the biggest anti-narcotics force in the world. The ANF, he said, has worked brilliantly to stop smuggling of narcotics as the force has seized and destroyed 55000 kilogram of narcotics during last year.
He said that poppy seed production, which was reported at 7000 hectare, was now being taken place at over 250000 hectare in Afghanistan especially in Helmand, Kandhar and Kabul. Therefore, around 44 percent total world's narcotics were being pushed into Pakistan from Afghanistan.
He further said that ANF did not charge single penny for examination and added that terminal operators were collecting grounding fee from the traders for ANF examination but unable to provide international standards at ports. "Terminals don't have roof-covered examination halls with re-packing facilities, causing severe financial shocks to the exporters in terms of orders cancellation," he maintained.
He said that although 5 percent examination of the containers was international practice, the ANF action was stood at 2.5 percent of total volume and added that ANF had no option but to carry out physical examination as they had China made scanner at ports, which could hardly spot anything.
Senior Vice President Sheikh Khalid Tawab, addressing the meeting, said that it was the duty of the FPCCI to take problems of business community to the government. He called for a mechanism for speedy clearance to facilitate both importers and exporters. He also called for special incentives for importers and exporters to increase legal imports and exports.
Meanwhile, Arshad Jamal, senior vice chairman All Pakistan Customs Agents Association (APCAA), highlighted several serious issues being faced by the traders, saying that WeBOC was overloaded that led to indefinite delays in the clearance of exports and imports consignments.
He said that there were several issues, which could be dealt by the collector, if they were empowered to handle the same and urged the federation to look into matter. He further stated that taxpayers were facing immense difficulties in paying taxes, due to insufficient space at NBP Customs House branch and added that management of NBP during meeting with APCAA consented to increase counters from 10 to 25, if the customs allowed the bank to use the space of its abandoned laboratory located at the bank-top.
In response to Arshad's question, Khokar assured to take up the issue with NBP management, adding that customs department would not only minimise the workload from WeBOC but also empower the collectors to deal with the issues, which need minor amendments. A large number of businessmen especially from service sector were present during the meeting.