Pakistan Customs launches drive against importers, agents

KARACHI: The tax authorities on Tuesday sent an advisory to clearing agents, cautioning them of legal action on use of forged or fake documents to clear import consignments.
Pakistan Customs has asked the clearing agents to provide complete details of importers, otherwise they would be held responsible for any forgery found after the verification of the consignments.
Model Customs Collectorate (MCC) East issued a notification, directing the agents presenting goods declaration on behalf of the importers that they should produce the importer physically and provide his whereabouts whenever required by Pakistan Customs.
The collectorate said several cases were detected in which the declaration was found to be false, especially in those cases where certificate is required for claiming certain exemptions and duty and tax concessions.
The Customs authority made it clear that in cases where clearing agents failed to produce such documents, they would be held equally responsible along with the importer in the duty and tax evasion.
In order to prevent such frauds, the Customs clearing agents have been directed to provide details of importer, while filing the goods declaration after March 9. Under the new guidelines, the clearing agents would provide attested documents along with the undertaking by the importers.
“He (clearing agent) shall submit the same undertaking or attested documents in any case where forgery, tampering or fakeness is found by the department,” the notification said.
The initiatives have been taken as several certificates related to free trade agreements, diplomatic consignments and approval of the Ministry of Commerce were found fake.
Pakistan Customs stopped several consignments claiming exemption on raw materials subject to the approval from the Ministry of Commerce by the textile sector.
Sources in the Customs said in the past, some declarations were found presenting fake certificate of the Ministry of Commerce.
Recently, the Ministry of Commerce had advised the Customs authorities to resume the clearance of raw materials as usual after detailed verification.
The ministry also informed it had initiated legal proceedings against three textile units, which presented fake certificates.
Khurram Ijaz, general secretary of the Karachi Customs Agents Association (KCAA), said a clearing agent presents goods declaration after completing all the documents.
The clearing agent is responsible for providing all the documents and whereabouts of an importer, but it is difficult to produce the importer, he said.
Under the law, Ijaz said Pakistan Customs has the authority to take assistance from the enforcement agencies to arrest fraudsters.
He said Pakistan Customs is asking the record beyond time limit. “Under the law, the clearing agents are bound to maintain record of the last five years,” he added.