KARACHI: Pakistan Customs asked the central bank to give a one-time waiver to importers from the ban on imports under open bank accounts in order to help the authorities check under-invoicing and false declarations, The News learnt on Saturday.
“The banks stopped issuing electronic import form (EIF) to commercial importers after imposition of the restriction,” customs authorities said in a letter to the State Bank of Pakistan (SBP). Electronic Import Form (EIF) was made mandatory for filing of goods declaration in July 2016.
The authorities said a number of consignments arrived into the country with payments made through open account. Banks refused to issue EIF to them after the restriction on imports under open account, which encouraged importers to mis-declare/under-invoice consignments for clearance.
In July, the SBP restricted remittance payment on behalf of importers against imports made on open account basis. The facility, however, remained available to manufacturing and industrial users for import of spare parts or raw materials. Previously, importers were permitted to make imports without opening of letters of credit or registering the indents/proforma invoices or orders with the authorised dealers (on open account basis), and make remittances after receipt of goods.
The customs authorities asked the SBP to allow one-time relief to the importers, who brought in consignments through open account. The authorities informed the central bank that the online clearance system – Web-based One Customs (WeBOC) – does not require electronic import form where assessable value of goods is less than $500 or where weight is less than 100 kilogram. Moreover, the EIF is also not required where goods are allowed exemptions.
“A number of importers filed GDs by claiming exemptions or by mis-declaring the value of goods less than $500 in order to bypass WeBOC system,” Pakistan Customs said.
It said customs officials framed charges against such importers for mis-declaring goods and imposed 35 percent penalties. Importers agreed to pay duty and taxes along with fine, but they said it would only be possible if banks issue EIFs to them.
The consignments of the importers have been stuck due to this restriction despite the fact that the importers are willing to pay duty and taxes along with penalty amount.
“It is proposed the SBP may like to accord waiver from requirement of EIF on one-time basis in respect of such consignments,” Pakistan customs said.
Mispricing rendered massive losses to exchequer as well as the economy. A tax reform commission constituted by the ministry of finance in 2014 unearthed a massive under-invoicing and mis-declaration of $3 billion related to merchandise goods imported from China. Total trade volume between the two countries significantly increased to $13.77 billion in the fiscal year of 2015/16 from four billion dollar in 2006/07 when a bilateral free trade agreement was signed. During the period, Pakistan’s exports grew to $1.69 billion from $575 million. Imports from China, however, witnessed a sharp growth to $12.1 billion from $3.5 billion.
