The Federal Board of Revenue (FBR) is collecting data on the non-duty paid smuggled vehicles lying with the Model Customs Collectorate (MCCs) across the country. Sources told Business Recorder on Wednesday that the board has issued instructions to the MCCs to submit information, including value and duties/taxes involved on smuggled cars.
The exercise is a part of customs department drive to generate some revenue in May-June 2007-08. The board has asked the collectors of customs to submit the report by the next 1-2 weeks.
It is yet to be decided that whether the FBR would launch another amnesty scheme for the regularisation of non-duty paid cars or not. Every time when FBR extends last date for regularisation of non-duty paid smuggled cars, it was declared as last and final amnesty scheme. However, it seemed that whenever revenue is required, the FBR has an easy way to collect money by regularisation of non-duty paid cars.
The repeated grant of amnesty for legalisation of smuggled cars has encouraged smugglers to continue with the illegal business of transporting vehicles from neighbouring countries to Pakistan. The board should explore new avenues for generating customs duty instead of relying on so-called amnesty scheme for the smugglers.
The collectors of customs had legalised non-duty paid vehicles on payment of 30 percent redemption fine. During the last amnesty, the vehicles, excluding buses, trucks and chassis thereof, imported in violation of Import Policy Order, for which Import General Manifests (IGMs) were filed up to August 31, 2007, were released on payment of duties/taxes and 30 percent redemption fine, cleared up to November 30, 2007.
The department had released non-duty paid smuggled cars and vehicles imported in violation of Import Policy Order on payment of 30 percent redemption fine. The facility was available to only importers, whose vehicles were in the pipeline under the previous scheme.
The board had allowed release of non-duty paid smuggled cars on payment of 30 percent redemption fine up to August 31, 2007. The department had allowed release of only vehicles, which fall under Chapter 87 of the First Schedule of the Customs Act, excluding buses, trucks and chassis thereof, which were shipped, voluntarily surrendered or seized by June 9, 2007.
The release of smuggled vehicles with non-tampered chassis was allowed on payment of 30 percent redemption fine in addition to customs duties and other taxes.
It is worth mentioning that customs officials have been empowered to impose penalty on the import of stolen and tampered vehicles under the personal baggage, gift and transfer of residence (TR) schemes to check influx of stolen cars. Where the importer brings stolen, chassis tampered or vehicles having fake and forged documents, he shall in addition to the confiscation of the vehicle, be liable to other penalty as may be forced for the time being. Re-export facility shall also not be available to the owners of stolen vehicles.