Tax Reform Commission (TRC) has recommended a new list of green channel companies for which certain minimum criteria should be fixed for speedy clearance of consignments of manufacturers/industrial importers. According to the final recommendations of the TRC, the company should be registered company under the Companies Ordinance 1984 to qualify for placement on green channel.
The company should be a manufacturer/industrial importer. It should have minimum import of at least US dollar 10 million per year. It should be a selected green channel company under E.A.S.Y, E.L.F or R.I.S.E because a lot of effort was put into selection of companies under these systems in the past. Such Green Channel companies should be notified through public notice or standing order.
TRC suggested to facilitate green channel importers their consignments under dispute when the RMS selects their consignments randomly under Yellow Channel should be released either against an undertaking or corporate guarantee depending upon the nature of dispute. There is a need to reform/rationalise the tariff keeping in view certain determined parameters. TRC is currently is working on the proposed parameters for rationalisation of customs tariff. The proposed parameters and the related recommendations would be finalised in due course. The delay has mainly been caused due to non-availability of data on time. However, certain recommendations in respect of customs are being included in the report to facilitate bonafide importer and exporter and to reduce the abuse of powers by the Customs officials.
TRC recommends that all the cases in the region should be resolved at Chief Collectors' level and only those cases should be referred to FBR by the Chief Collectors where a policy decision is required. TRC recommends fast track implementation of recommendations contained in August 2014"Customs Compliance Risk Management: Gap Analysis and Roadmap for Implementation in Pakistan" USAID report authored by Deloitte.
TRC suggests that if there is an immediate requirement of an item for a project and the listed company is confirming delivery in 6-8 months, condition of local manufacture should be relaxed for the importer. TRC recommends that the role of Principal Appraiser under WeBoc should be eliminated and principal appraiser should also be given assessment task. A robust RMS should be developed. TRC suggests that either 10-12 counters should be made for depositing duty or it should be allowed to deposit duty at any NBP branch anywhere throughout the country or at least within Karachi.
TRC recommends that a Review Committee consisting of representatives of local manufacturers, FPCCI, Importers Association, nominees of Customs Collectorates / FBR be set-up. The committee should be headed by D. G. Valuation in medium term to seek more input on valuation aspects and classification issues for Custom Agents Association.
TRC suggests that a help desk should be created at the collectorates from where the importer can get prior written confirmation of classification/valuation of an item which he intends to import. This will be helpful in avoiding delays and losses due to classification disputes after the goods arrive.
TRC recommends that in case of export shipments where Anti-Narcotics Force (ANF) is carrying out checking, customs drug check should be waived. In case of green channel companies even ANF check should be waived on the basis of an undertaking from the exporter if it is a green channel company. The same condition should be applied on import shipments. TRC suggests that terminal operators should be bound to ground the containers for examination within 24 hours. TRC recommends that no adjudication process should be initiated and no extra duty should be recovered in cases where the weight is found to be more than declared weight if otherwise the declared value is more than the evidence on record. TRC suggests that custom agents list should be scrutinised. Licenses of those agents who are not performing should be cancelled. Also customs agents should be categorised into A-B-C categories considering past record, list of clients, volume of business being handled and education background of license holder. Facility of out of turn urgent hearing and acceptance of undertakings where required maybe extended to 'A' category agents.
TRC suggests in case of confiscated goods that after confiscation such goods should be first offered to the original importer on the determined price. TRC suggests that Weboc registration should be made simple. TRC suggests that FBR should not take more than two weeks to respond to a query by an importer/exporter or collectorates.
All valuation ruling/advices should be made available on web within 24 hours after these are issued or under the WeBoc system the valuation fixed should appear on the screen against the claimed tariff classification. All notification and amendment are fed under Weboc within 24 hours after these are issued. There are numerous importers registered under Weboc who do not hold Sales Tax Registration. ID's of all such importers should be blocked immediately. This would provide a fair playing field to compliant importers.
TRC suggests that import of all types of used machinery and spares should be allowed provided those are imported from importers own foreign exchange resources. TRC suggests that in case of de-blocking issue deadlines should be fixed and implemented for finalising the cases. TRC suggests that FBR staff need to change their negative attitude and develop a positive approach. So that bonafide importer develops trust in the FBR.