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Pakistan, China agree to form mechanism to check smuggling

By Mehtab Haider
May 28, 2016

Chinese team, FBR discuss custom issues; both
also agree to exchange information through email

Islamabad

Pakistan and China have agreed to build a mechanism for exchanging mutual intelligence to counter smuggling and putting in place stop-gap arrangement for exchanging of information through email for curbing under invoicing in a bid to avoid multi- billion dollar losses to both economies.

China’s Director General, Urumqi Customs, People’s Republic of China delegation led by Zhao Ge visited Islamabad and held talks with FBR’s Customs authorities of North Region led by Sarwat Tahira Habib, Chief Collector North Customs. Both sides agreed through joint communiqué that they recognised the importance of exchange of information on regular basis to counter under valuation and mis-declarations. 

The distinguished visitors were informed that Pakistan was keen to establish "Electronic Data Interchange" (EDI) linkage with China on "Real Time Basis" to expedite clearance and to safeguard government revenues. 

It was further informed that the two sides had been engaged in negotiations in this regard for quite some time and the arrangement was expected to be finalised shortly. In the meanwhile, the delegations agreed to the exchange of data electronically (through email) and other means, as a stop-gap arrangement to cross-verify valuation data. 

It was agreed between the two sides to build up institutionalised cooperation/relationship with each other. The delegates recognised the exponential surge in the bilateral trade between China and Pakistan in the wake of upcoming CPEC and agreed to strengthen mutual cooperation between the two customs administrations to cater to the needs of rapidly increasing bilateral trade by holding regular meetings at regional level, for resolution of day-to-day issues, besides holding annual meetings for strengthening the long standing ties between the two administrations. For the purpose, both sides agreed to designate focal persons/contact points at regional level to maintain liaison for timely resolution of issues. 

Discuss effective ways to promote bilateral border economics: The delegates expressed concern over lesser trade volumes through land route via Sust Border Customs Station vis-a-vis overall bilateral trade between China and Pakistan; and agreed to simplify procedures to ensure speedy clearance of import & export cargo, upgrade technological support and improve infrastructure to expedite clearances, and thereby increasing bilateral trade via land route.

Discuss the possibilities of opening a Green Corridor between two borders for agricultural goods: Both sides agreed to facilitate import of agricultural commodities/products. It was conveyed to the distinguished visitors that import policy in Pakistan is regulated by the Ministry of Commerce, while Quarantine Certificates are issued by the Plant Protection Department, Ministry of Food Security. These ministries and other relevant stakeholders will be consulted for considering the idea of a green corridor.  Discuss effective ways to ensure the safety of the borders, and build a mechanism to exchange intelligence between our two anti-smuggling bureaus: It was agreed to strengthen customs controls at the border and to exchange information to curb the menace of illicit trafficking and smuggling across the border. For the purpose, both sides agreed to designate contact points/focal persons.

Expediting clearance of cargo imported/exported under the Free Trade Agreement (FTA) between Pakistan and China: The distinguished visitors were informed that with the establishment of the proposed EDI between the two countries, the "Certificates of Origin" required for the imports made under the Free Trade Agreement (FTA) will be available online, which will save the importers from the hassle of obtaining the same from the Ministry of Commerce; and thereby save their time. 

The Urumqi delegation requested that cross border transport of loose cargos on trucks-buses etc. maybe consolidated and sealed by border customs authorities of Pakistan Customs, if possible. Pakistan Customs agreed to examine this issue under provisions of relevant laws. 

Other topics of mutual concern: Both sides agreed to organise exchange of professional experts in various fields of Customs and to invite officers of Customs for mutual trainings for a better understanding of customs procedures and documentation requirements of both countries. 

In order to promote bilateral friendly relations, the Urumqi Customs delegation proposed to organise cultural and sports activities between Border Customs Stations. The proposal was welcomed by Pakistan Customs. The Chinese delegation proposed bilateral meeting every year in the third quarter and invited the Chief Collector Customs (North) next year. The invitation was accepted.