Revenue authority advised toupgrade goods clearance process

KARACHI: Customs agents on Monday proposed the apex revenue authority to improve its verification system at the customs to ensure speedy clearance of goods for imports and exports.
Karachi Customs Agents Association (KCAA), in its budget proposals (2015/16) sent to the Federal Board of Revenue (FBR), proposed ‘Directorate of Research and Classification’ under which a laboratory with proper staff and advance rulings/advance classification may be available on reasonable fee.
“Approved classification and lab test reports should be published throughout Pakistan so that problems and hurdles being faced by trade may be curtailed,” said the proposals.
The association said due to non-availability of proper latest equipment, shortage of staff and non-allocation of funds most of the tests are not done in the customs laboratory and sent outside. Different Pakistan Customs Tariff classification has been increased day by day. Unfortunately, in some places they are required but not properly circulated for the implementation.
The FBR was also advised to deal transshipment (TP) through risk management system (RMS) and the proper rules for declaration should be notified in goods declaration field for the purpose of transshipment. The KCAA said TP is misused much more than the Afghan transit.
“The association is not against the TP, but true declaration should be made part of this and the same declaration should be given at the Karachi Port in order to safeguard the national revenue,” said Khurram Ijaz, General Secretary of KCAA.
The association proposed that goods declaration can be filed at any dry port in place of TP, but it has RMS and checking updates should be given to dry port, and examination of the goods should be made at the Karachi Port. In case 100 percent examination of cargo is not possible, at least 10 percent items should be examined like Afghan Transit RMS and at least 10 percent cargo should be examined at Karachi Ports.
On filing TP at Lahore, Multan, Faisalabad, true declaration of goods should be attached. On contradiction, the appraiser assessing opening GD/TP with the importers declaration should take strict action in case of any mis-declaration.
The association suggested an amendment to a statutory regulatory order 499(I)/2009, which deals with offenses and penalty on difference between ascertained and declared weight or quantity subject to the condition that the percentage difference is more than five percent.
In most of the cases, the weight of consignment is on the lower side (500kgs to 400kgs) and due to environmental factors around the weighing scale at port of clearance a slight change may be occur in ascertain weight, which could be 50 to 400kgs. But, it comes to around 10 percent.
But there is a nominal impact of duty and taxes due to this difference of weight.
“Therefore, percentage of quantity/weight should be allowed from five percent to 10 percent,” Ijaz said in the proposals.
The association also sought amendments to Eight Schedule of Sales Tax Act, 1990 and advised that the reduced rate of sales tax should be granted to each importer either commercial or industrial without subject to any condition.
It was causing unusual workload of documentation at the end of customs authorities as well as for the traders.
The machinery can be used in an industry and not anywhere else.
Seeking amendment to the licencing rules, the association said presently the custom agents licences are being renewed after every two years. In other neighboring countries, the specified period for the renewal of customs agent licences is 10-year.
Therefore, licences should be renewed for 10-year instead of two years after the first renewal.
The association said there is a requirement of details, in the customs rules, regarding exporters and importers to be provided by clearing agents for an indefinite period, “which should be restricted to five-year”. —Shahnawaz Akhter