LAHORE: Federal Board of Revenue has issued instructions to the Model Customs Collectorate (MCC) of Lahore for taking action against certain traders who are making attempts to import table potato from India by concealing customs duty through under-invoicing declaring cheaper price of Indian potato.
The instructions were issued after a report of Farmers Association of Pakistan that has been recently approached by various potato farmers who were complaining that there are some traders who are importing table potato from India by concealing duties.
This is in total contravention of trade ethics besides Pakistan custom rules and regulations. Recently imported potato by a multinational company in Lahore was cleared at $350 per tonne, the association complained. The international price of table potato at present is now above $500 per tonne and it is believed that few unscrupulous elements are trying to declare the price at half of the international price.
The market prices of Indian potato as of today are close to 25 Indian rupees per kilo. If the expenses pertaining to packing, forwarding and freight are added the cost escalates by 20 per cent, i.e., to 30 Indian rupees, translating into almost Rs 52 per kg, i.e., $500 per tonne. Therefore, this attempt to import table potato from India invoiced at $250 per tonne is a clear case of mis-declaration and concealment. This will not only bring loss to government but will also affect the local farmers. It is contested that the regulatory framework has to be more vigilant and strict so that these discrepancies do not go unnoticed and such traders are taken to task there and then.
These incidents create doubts in the minds of farmers for trade with India, especially from Wagha where in view of ineffective infrastructure’ such anomalies take place and go unnoticed causing huge loss to government and the farmers, the association complained.
