The Federal Board of Revenue (FBR) has constituted two high-level committees to check smuggling under the Afghan Transit Trade Agreement (ATTA) and investigate the saga of alleged missing of containers destined for Nato and International Security Assistance Force (ISAF) stationed in Afghanistan.
Sources told Business Recorder here on Monday that the first committee headed by Amir Marwat Director General Customs Valuation, Customs House Karachi would thoroughly examine the issue of ISAF containers. Besides DG Valuation, the members of the committee would comprise a collector and an additional collector of customs.
The FBR has specifically given this assignment to Amir Marwat due to his vast experience in transit trade related issues and valuation procedures. The committee would also propose changes in the customs laws to ensure smooth transportation of transit consignments for ISAF/Nato forces with precautionary measures to check missing containers. The legal lacunas in the customs laws would be identified by the committee for examination of the containers, if required.
The second committee would comprise collectors of customs including Appraisement, Port Qasim, Peshawar, and Quetta. The committee would propose changes in tax laws to effectively handle transit related issues and plug loopholes in the existing transit procedures. The committee would also monitor the movement of containers form Karachi to Peshawar etc to streamline existing procedures. The possible leakages in the exiting system would also be analysed by the committee.
The FBR has given full authority to the Directorate General of Intelligence and Investigation to expand the scope of the investigation and check all such containers which were cleared for ISAF on forged documents. The FBR has constituted a fact-finding committee headed by Amir Marwat to probe the matter. The committee would conduct parallel investigation and submit an independent report. The investigation of the case is expected to be completed in 4-5 months. The reports of DG intelligence and fact-finding committee comprising senior officials could be cross-checked for verification.
The FBR has approached the ISAF for convening a meeting with ISAF/Nato authorities for setting up an office in the federal capital. In this way, the FBR can promptly obtain necessary information from the concerned officials of the ISAF regarding transit of consignments destined for Afghanistan, sources added.
According to FBR, misleading impression is being created regarding non-reconciliation of clearance data by Customs Collectorates of 11,000 containers whereas the fact was that a total of 11,167 containers of ISAF/ Nato had been off loaded containing imported items, and allowed transit through Model Customs Collectorate (MCC) Port Qasim and MCC (Appraisement) along with cross-border certificates received in the case of almost 99 percent of these containers. The receipt of cross-border certificates in case of 99 percent of Afghan-bound containers also nullified the claims that the country had suffered losses to the tune of billions of rupees in terms of taxes and duties which were not chargeable to the goods imported and destined for Afghanistan. Since 99 percent of the containers have crossed border, the discussion about the loss of revenue becomes totally baseless and unwarranted, the FBR said.
Under the procedure, the NLC carrier is required to furnish Cross-Border Certificates from the exit Collectorate as an acknowledgement within 15 days after crossing of the border. The cross-border movement of goods depends on the security situation in Afghanistan and at times it takes more than 15 days for such crossing and normally there is a time lag for reconciliation of the released cargo allowed and its Cross-Border verification. The FBR reported that detection of the case involving a few containers had been made by the FBR and at first case FIR was lodged nearly two months ago about a container belonging to M/s Lunar Products which was seized at Karachi Port prior to its clearance.
The ISAF/Nato cargo is being allowed transit to Afghanistan in accordance with the procedure devised by the government of Pakistan in 2002 and this arrangement remains unchanged. During the transit through Pakistan, it is the responsibility of the carrier ie NLC to ensure secure transit up to border. The NLC uses Hired Mechanical Transport and this system is also in vogue since the beginning.
The company has been illegally involved in clearing containers under the umbrella of the ISAF. The FBR would not allow clearance of any container for ISAF through the said company. The main accused in the case has been arrested and FIR has been lodged against him. During investigation, the accused revealed the names of some customs officers involved in the case. The three identified customs officers have been arrested and further investigation is underway. The company has imported around 40-45 containers and investigation is underway on the assumption that all containers imported under the cover of ISAF have disappeared in the country, the FBR added.