KARACHI: Directorate General of Customs Valuation is re-initiating the development of database values of importable items, a process which was temporarily stopped after some reservations by Chief Collector Appraisement South Abdul Rasheed Shaikh.
The Director General Customs Valuation, in view of mass under-invoicing, formed a plan ‘Tanveer Plan’ to secure government’s legitimate revenues. The development surfaced after a huge difference was noted in the numbers of China’s exports to Pakistan and Pakistan’s imports to China. It was confirmed that imports particularly from China were grossly being under-invoiced.
Directorate General started issuing valuation guidelines for the reference of assessment staff. However, Abdul Rasheed Shaikh raised some reservations and the process stopped.
The Directorate General of Customs Valuation issues valuation rulings for uniform application across the country. There are over 300 valuation rulings in the field.
After High Court‘s verdict regarding validity period of the valuation rulings. Directorate General is receiving incessant applications to revise rulings. This office has geared up its performance and so far has issued 161 rulings during current year 2016 alone.
Revision of valuation ruling is a tedious and lengthy process which involves analysis of clearance data, examination of record, documents submitted by different stakeholders, conducting market inquiries, evaluating information gathered online and scheduling and conducting stakeholders meetings for their input and feedback with specific timelines.
This process is followed invariably while issuing valuation rulings. Resultantly, finalizing a particular ruling consumes a considerable amount of time and resources. Lately, litigation in Tribunals and superior courts has also increased. In addition to this, requests for issuance of rulings for new items are constantly being received from clearance formations.
Customs Intelligence and trade bodies, certain local manufacturers have also approached this office with candid evidences against sectoral under-invoicing. Keeping the workload and the available resources in view, it is not possible to entertain all such requests.
To address the situation explained above and to forestall revenue leakage on items identified where under-invoicing is rampant, it was decided to develop and populate Valuation Database. For the purpose, WeBOC development team was also taken on board and system was also configured in a way that while filing GDs and making assessment by the importer and customs staff. Valuation Ruling values and Database values are made accessible.
