The Federal Board of Revenue has proposed substantial raise in penalty on violations of transit rules under the Afghan Transit Trade Agreement (ATTA) following huge increase in volume of import under transit trade. Sources told Business Recorder here on Friday that the importers, who resort to violation of rules and regulations during transit, should be liable to higher rate of penalty as compared to the prescribed amount under Customs Act, 1969.
The FBR has proposed amendment in section 156 (punishment for offences) of the Customs Act, 1969. In this regard, the FBR has to request the government to promulgate a Presidential Ordinance or present the proposed amendment before the Parliament for approval. The Collector of Customs, Peshawar and FBR Chief Customs would prepare the amendment for the FBR.
Details revealed that the FBR has expressed serious concern over the substantial increase in volume of imports of fabrics, tiles, plastics, tableware, tea and tires under the existing ATTA in 2009-10. Sources said the quantum of imports in the Afghan transit trade has tremendously increased during current financial year particularly imports of fabrics, tiles, plastics, tableware, tea and tires.
The most of these goods find their way into the markets in Pakistan. Recently, the seizure cases of ATT goods by the customs department call for strict implementation of existing documentation as well as management controls on Afghan transit cargo at Karachi Port by Appraisement Collectorate. The customs department should ensure to make the probability of local de-stuffing of such containers/cargo impossible.
In this connection, the FBR has issued instructions to the Directorate General of Intelligence and Investigation and Collectors of Model Customs Collectorates (MCCs) Quetta and Peshawar for finalise a strategy to check smuggling of transit goods coming back to Pakistan.
Presently, if any person contravenes any rule or condition relating to section 128 or section 129 of Customs Act, such person shall be liable to a penalty not exceeding Rs 25,000 and any goods in respect of which such offence has been committed shall also be liable to confiscation. The section 128 of Customs Act is related to the transport of certain classes of goods from one part of Pakistan to another through any foreign territory. The section 129 of Customs Act is related to the transit of goods across Pakistan to a foreign territory.
Sources said that amendment in section 156(1)/(64) of Customs Act, 1969 needs revision to increase prescribed amount of penalty. The concerned officials would forward the proposal to the FBR for any change in the Customs Act, 1969. The purpose of the whole exercise is to check the violations of rules and regulations during transit of goods under the ATTA.
Under the anti-smuggling plan, the MCC Appraisement Karachi would regularly analyse the data of imports under the Afghan transit trade and send monthly analytical report to the FBR suggesting administrative and enforcement measures to check the misuse of the Afghan transit trade arrangement. This report should also contain the evaluation of the working of the monitoring mechanism in this regard, the FBR added.