The Central Board of Revenue (CBR) found variation in assessment of customs duty on the import of commodity cleared through two different computerised systems ie "One Customs" and Pakistan Customs Computerized System (PACCS).
Sources told Business Recorder on Thursday that importers are entitled to get import consignments cleared either through "One Customs" project or Customs Administrative Reforms Project (CARE), a part of PACCS. There should be same rate of customs duty on the import of any commodity cleared through any of the systems. However, tax authorities have noted with concern that there is variation in the effective rate of customs duty in "One Customs" and PACCS for different commodities.
The CBR has issued instructions to Member Fiscal Research and Statistics (FRS), Secretary Customs Budget, Collectors of Model Customs Collectorate and Appraisement, Karachi, to investigate the matter on top priority basis. Sources said that there is doubt about the difference in customs duty on the import of same commodity cleared through these two computerised systems.
For example, animal is covered under a specific HS code of the Pakistan Customs Tariff (PCT), but there are many sub-headings of the same HS code resulting in different description of the same commodity. This may result in variation in rate of customs duty being charged on different commodities. The analysis would be conducted taking into account the detailed analysis of the HS coding system. According to sources, the analysis of both systems may confirm about the quantum of variation in duty on the import of consignments.
It has been reported in few cases that customs officials at 'One Customs' as well as Care are applying different rates of customs duty on the import of the same commodity. The board wanted to launch new Harmonised Commodity Description and Coding System (HS Code) 2007, from 2007-2008 and existing Pakistan Customs Tariff (PCT) has been transposed to HS 2007.
The new HS-2007 system would be applicable from the next fiscal year. Pakistan has 1100 national tariff headings and the same rate of duty has been shown against each item on the new HS Code system. Sources said there is a need of proper analysis of the customs database of both the 'One Customs' and the Care system for smooth implementation of the new HS-2007 system from 2007-08.