KARACHI: Pakistan Customs is all set to revise up the import trade prices of tyres and tubes in a bid to curb under-invoicing in the monthly $20 million market.
The Directorate of Post Clearance Audit-Customs forwarded a reference to the Directorate General of Customs Valuation for re-fixation of customs values or import trade price of tyres and tubes.
“Preliminary audit findings show that tyres and tubes are being under-invoiced by approximately 52 percent, resulting in a significant revenue loss,” said Gul Rehman, Director Post Clearance Audit.
Customs value is the transaction value on which the assessment of duty and taxes is carried on.
According to the details, the customs department conducted a desk audit of the import of these goods for the period between January 2013 and December 2015, and it was found that the assessment of these goods was made as per the valuation ruling (i.e. customs value applicable at the time of import).
However, the values declared by the importers were cross-checked by the transaction value in the exporting country. And, this exercise revealed that value of goods declared to the customs of shipping country at the time of export of these goods is much higher than the invoice value declared before the customs.
“Directorate General of Customs Valuation is requested to examine the issue carefully to re-fix the import trade price of the subject goods,” Rehman said.
Under-invoicing is a major source of revenue leakage at import stage. The Pakistan Business Council, in a report, said the country loses around Rs150 billion every year to under-invoicing. Moreover, import of goods at under-invoiced values adversely impacts the local industry. Tyre manufacturers have time and again raised voice against smuggling and under-invoiced imports of tyres and tubes. Pakistan imports an average $20 million of rubber tyres and tubes every month.
Courtesy : TheNews