Customs to revise values of imported goods

KARACHI: Tax authorities are discussing the ways to revise the prices of hundreds of imported goods in a bid to draw due tax revenue from the foreign trading, officials said.  

The officials said Pakistan Customs has already begun an exercise to revise the transaction values of importable goods.

An official said Directorate General of Customs Valuation scheduled meetings with importers, traders, industry representatives and other stakeholders almost every day.

The official said the customs is developing the database of around 2000-3000 different items. Their values are not commensurate with the international price trends, the official added. Duty and taxes are assessed on these determined transactional values of goods. 

The official said revision in transactional value or customs value of goods affects the prices of these imported goods in the local market following an increase or decrease in duty taxes.

In the first phase, the officials said customs values of beverages, used machinery, auto parts, electrical and office appliances, fabric and medical goods will be revised.

Importers of various goods were against the values determined earlier, saying the prices had declined in the international market but, customs authority was charging duty and taxes on higher values.

On the other hand, local manufacturers of several products said goods are being imported on grossly under-stated values. The Customs Act says the collector of customs or the director of customs valuation, on his own motion or on a reference made by any person, may determine the customs value of any goods or category of goods imported into or exported out of Pakistan.

“The customs value so determined vide Valuation Rulings are applicable customs value for assessment of duty and taxes on the relevant imported or exported goods,” it adds.

This exercise would discourage under-invoicing and facilitate legitimate trade, the official said.

The valuation directorate has been streamlining the data to reflect the actual values of importable goods prevailing in the international market.

All the valuation rulings issued so far are already uploaded on the online tax system. The system is being amended so that all rulings may be visible to traders. Moreover, provision is being created to upload values of database.

Additionally, in order to provide the information to all a new web page is being developed on the Federal Board of Revenue’s website.

All necessary information, including valuation rulings and valuation database will be publicly displayed on it, to facilitate trade.