KARACHI: The Federal Board of Revenue (FBR) has cut Customs clearance requirements in compliance with the Trade Facilitation Agreement.
The FBR reduced documentary and data requirements which were introduced as Economic Operator Program (EOP) through the Finance Bill 2018. The EOP has been aimed at lowering documentary and data requirements; low rate of physical inspections and examinations; rapid release time; payment of deferred duty, taxes, fee and charges; use of comprehensive or reduced guarantees; a single Customs declaration for all imports or exports in a given period; and clearance of goods at the premises of the authorised operator or another place authorised by the Customs authorities.
Chartered accountants at PwC A F Ferguson & Co said member countries of the World Trade Organization (WTO) concluded TFA in 2013.
Under this agreement, members have agreed to expedite the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between Customs and other appropriate authorities on trade facilitation.
The chartered accountants said TFA also contained provisions for technical assistance and capacity building in this area.
Another measure to comply with the TFA is provisional release of imported goods where an offence is detected in respect of goods, which are not liable to confiscation or requiring evidence at a later stage.
The release is made subject to payment of duties and taxes or other charges and furnishing of bank guarantee / pay order by the owner for settlement of any fine or penalty.
The finance bill also proposed allowance of export of frustrated cargo without payment of duty where consignee has dishonoured his commitment.
