ISLAMABAD, April 27: The government has formally approved a charter of function of the director general of customs valuation for the effective implementation of the World Trade Organization (WTO) Valuation Agreement in the country. Officials told Dawn on Wednesday that Pakistan implemented the new valuation agreement on January 1, 2000, which deals with the bona fide trade but ignored to install an effective valuation department with clear charter of functions for the implementation of the agreement, revised Kyoto Convention, national legislation and rules.

The lukewarm response of the Central Board of Revenue towards the establishment of an effective valuation department had resulted into massive duty evasion in the last few years.

Although the government has recently established a separate valuation department in the CBR, it was yet to be fully staffed and equipped to deal with issues like under-invoicing, over-invoicing, commercial frauds and smuggling of goods causing losses to the national kitty every year.

According to the charter of functions of directorate general of customs valuation, a copy of which was made available to Dawn, the valuation department would provide assistance to all customs collectorates and determine correct transaction value of the goods assessed provisionally under section 81 of the Customs Act, 1969 and referred to the director general.

It was decided that the new valuation department would ensure uniformity and neutrality in valuation practices in the assessment of imported goods across the country through consultative processes involving all chambers and trade bodies and by establishing dispute resolution mechanism for resolving valuation disputes and redressing their grievances.

The department will issue valuation rulings and opinions including advance valuation rulings for providing certainty to the trade, minimize chances of valuation disputes, enhance confidence in the working of customs and ensure quick clearance in line with the valuation agreement.

It would maintain and update price database of goods imported into and exported out of Pakistan and function as a centralized data recording and dissemination agency, to prescribe and maintain risk management criteria to curb the menace of under-invoicing.

The department would also prepare and maintain profiles of importers, exporters, clearing agents, indenters and other related persons so as to be useful as a risk assessment tool; to conduct transparent market inquiries by involving representatives of trade and industry for determination of values and maintain effective liaison with Pakistani missions abroad for timely verification of value; and to conduct research and analyze price trends in countries of export and Pakistani markets.

It will constitute consultative committees and publish material and technical interpretations for general importer education to convey the administrative intent of the customs department to trade and industry and enhance the compliance level.