The Federal Board of Revenue (FBR) has decided to take strict action against the customs officials involved in processing of goods declarations (GDs) without complete specifications and description of goods to check massive under-invoicing and mis-declaration of goods.
Sources told Business Recorder on Saturday that the FBR had issued instructions to the Model Customs Collectorates (MCCs) for not to entertain incomplete goods declarations (GDs) with wrong Pakistan Customs Tariff (PCT) headings. According to the instructions, the MCCs should ensure that the GDs, filed by an importer, must indicate complete description of goods and specifications as per instructions issued by the Customs House, Karachi.
The Clearing Agents Association of Karachi and Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Karachi, have been taken into confidence that the GDs with incomplete description, details and specifications, giving wrong PCT headings, would not be entertained by the Customs Department.
The Collectors of Customs should issue public notices that after the expiry of 10 days, no incomplete GDs would be entertained. Afterwards, the officer entertaining GDs with incomplete description should be taken to task, the FBR instructions added.
When contacted, a customs expert said that the technique, used to evade customs duty, was to avoid specifications of the imported goods to levy low customs values on imported goods. The incomplete GDs processed through "One Customs" clearance system would not be entertained.
However, it is impossible to clear incomplete GD through the Pakistan Customs Computerised System (PACCs), as complete specifications of the imported goods have to be mentioned for acceptance of GDs. The machine would not process the GD through PACCs till all complete description of goods has been specified. However, no column could be left blank.
Now, it seemed that the FBR wanted to ensure complete specifications and description of imported goods to check mis-declaration of imported goods. In case any customs official would entertain the GD without complete specifications, would be punished under the customs laws, customs expert added.