The Federal Board of Revenue (FBR) has made it compulsory for all the importers to declare packing lists and invoices inside the containers for clearance of imported consignments to check misdeclaration and under-invoicing of import cargo. The FBR on Monday issued instructions to the Model Customs Collectorates (MCC) for strict enforcement of Customs Rules 2001.
Sources told Business Recorder that absence of packing list and purchase invoices inside the imported container was the major reason of misdeclaration and under-invoicing. The packing list gives complete details of packed consignments and invoices disclose the actual customs values on which the foreign sellers has sold the goods to the Pakistani importers.
In the absence of foreign sellers'' invoices, it is very easy for the unscrupulous elements to show fake invoices to the customs department to apply low customs values for inaccurate assessment of customs duty. The presence of actual invoice inside the door of container would leave no room for the tax evader to show fake/forged invoices, as the actual customs value and price of the import commodity, purchased from foreign country, would be known to the customs department.
When the packing list/invoices are being pasted inside the container''s door, the actual rate of customs duty would be applicable on the import of any consignment, which cannot be contested by the importer. The invoices pasted inside the imported containers cannot be changed under the computerised clearance system.
"How an importer can change the actual (higher) customs value invoice, which is pasted inside the container door to apply low customs values on imported goods?" sources said. Now, the FBR has decided to strictly enforce the provisions of the Customs Rules 2001.
According to the FBR decision, declaration provisions of the SRO.450 (I)2001 shall be implemented and all import cargo shall accompany with the copy of packing list and invoice. All import cargo entered the Customs area for clearance shall be accompanied with a copy of packing list and invoice in the following manner.
-- In case of containerised full container load (FCL) cargo, the documents shall be placed on the inner side of the door of container.
-- In case of multiple containers in a consignment, each container shall have such documents pertaining to goods inside it.
Secondly, consolidated cargo and less than container load (LCL) cargo: The documents shall be attached to the goods or package at an obvious place. Each such container shall also have a consolidated packing list pertaining to goods inside it placed on the inner side of the door of container.
As far as break bulk or bulk cargo is concerned, the documents will be furnished to Customs by the carrier on entry of conveyance into Customs area, the rules added. Legally, shipper has to certify that goods mentioned in the accompanied packing list have been placed inside the container and the container has been sealed.
When contacted, a tax expert said that the implementation of the decision would be the biggest challenge for the FBR to ensure each and every container must have actual invoice of the commodity inside the door of the container. The decision could not be effectively implemented in the past as presence of actual invoice pasted inside the container exposes all kinds of under- invoicing and misdeclarations.
For this purpose, the fraudulent importers have applied different techniques in the past to evade the customs authorities. SRO.198 (I)/2005 also gives details about the submission of packing list and invoices inside the containers for clearance of imported consignments under the Pakistan Customs Computerised System (PACCS) said the expert.