The Central Board of Revenue (CBR) has decided to formulate a new anti-smuggling policy to curtail the volume of illicit trade. The CBR has issued instructions to all collectors of customs to analyse item-wise the value of seizures during the last five years.
This will help in identifying items which are frequently smuggled into the country. Once the items are pinpointed, the CBR could control smuggling through fiscal measures, including tariff rationalisation.
Secondly, the CBR has decided to set up customs check-posts at crossroads of tribal areas and adjacent settled areas. The scope of Customs Act, 1969 was extended to FATA and PATA long ago. However, the political agents, who have been given customs powers, hardly enforce the law in FATA/PATA.
Meanwhile, it has been agreed that surplus staff in the excise collectorates would be transferred to the collectorates of customs where new check-posts and customs stations would be set up.
The CBR has also decided not to restore the powers of other agencies.
The department has also started working on special pay package for anti-smuggling staff. This would be done as an incentive measure for the staff engaged in anti-smuggling activities.
According to CBR, total estimated value of smuggled goods into Pakistan from China, Iran, UAE, India and Afghanistan ranges between $4 billion and $6 billion per year. Annual value of goods smuggled from Afghanistan is about $1.5 to 2 billion; Iran $0.5 to 1.0 billion; UAE $1.0-1.5 billion and the value of smuggled goods from China and India is around $1.5 billion.