ISLAMABAD, May 14: The valuation department of the Central Board of Revenue has finalized parameters for carrying out audit and verification of import and export documents to detect valuation fraud and malpractices. A CBR official told Dawn on Saturday that through the post-clearance audit (PCA), the valuation department would audit the documents, declarations and other related documents after clearance of the goods with a view to unearthing the frauds.
According to the approved parameters of the PCA, a copy of which was available with Dawn, the department would ascertain and examine whether the information available at the time of valuation was accurate and the valuation had been properly carried out on the basis of the documents presented — inclusion of freight, acceptance or rejection of transaction value as the case may be, inclusion of value of assists, currency conversion and other allied calculations/adjustments.
The valuation department would develop a liaison with the clearance formations to investigate over the whole customs field, including the valuation in cases of suspected commercial fraud and irregularities. It was also decided to establish an organized intelligence and investigative network to detect discrepancies and complexities involved in modern commercial transactions.
Under the GATT code, the primary method of valuation is based on the price agreed upon between a seller and a buyer and consequently there was a great dependence by the customs on invoices. The primary purpose of the self-assessment system for an importer is to pay customs duty on the basis of declaration which he considers is correct. However, voluntary declarations were not always correct. Therefore, each declaration must be carefully checked and examined at the time of import clearance, the official added.
