FBR plans anti-smuggling policy to protect local industry

KARACHI: The Federal Board of Revenue (FBR) plans to tighten checks to stop widespread smuggling of goods into the country to protect manufacturing sector, sources said on Monday.
They said the FBR is working on a new anti-smuggling policy and policy draft has been sent to stakeholders for their feedback. Under the proposed policy, the directorate general of intelligence and investigation of the FBR will be the focal department for creating deterrence against smuggling. “Furthermore, the directorate would work jointly with other law-enforcement agencies,” the source said.
The prime responsibilities of the directorate would be to compile and collate information for carrying out analysis of trends in smuggling, besides identifying smuggling routes and choke points.
“The directorate will provide force to vulnerable check-posts and will issue potential risks of smuggling to other allied departments of Pakistan Customs,” the source said. The directorate would be authorised to establish new check posts. Sources said the directorate would nominate regional focal persons for the Customs stations or strategic locations for supervising or conducting joint anti-smuggling operations.
They added that the chief collectors would ensure availability of the requisite human resources expert in investigation and information gathering techniques to the Regional Focal Persons.
The directorate general will develop and maintain a central database of seized goods, carrier vehicles, smugglers, abettors and financiers, including their moveable / immoveable properties in consultation / cooperation with other LEAs.
The database will also include the information / details of all the vehicles imported in the country, cleared under various vehicles amnesty schemes, released on redemption fines and vehicles auctioned by the collectorates and other agencies in exercise of the power conferred under the Customs Act, 1969 by integrating therein the data of Motor Registration Authorities of the country. The database will be updated regularly.
The directorate general will make arrangements for extensive use of information technology tools for vigilance and monitoring. CCTV cameras will be installed at the check posts / checkpoints. Communication room / centre would be established under the supervision of RFPs. In the past, the anti-smuggling efforts have been failed due long and porous borders with India, Iran, Afghanistan and China. Smuggling takes place across all these borders and through the sea. Large quantities of diesel and petrol are smuggled into Pakistan from Iran on a daily basis. It is done either in tankers each carrying around 15,000 litres or in smaller high speed pickups loaded with plastic cans, a report said. “The smuggled fuel is sold in improvised road side fuel pumps across Balochistan and adjoining areas of other provinces,” according to a report submitted by the Federal Tax Ombudsman (FTO) in NATO-ISAF containers scam.
The report had pointed out that the reasons for high quantum of smuggling included Pakistan’s relatively much higher tariff and taxation incidence on lawful imports, particularly on consumer goods; consumer preference for imported goods; failure of import substitution industry; collusive, lax and inefficient law enforcement; and weak accountability.