December 27, 2006	Wednesday	Zilhaj 05, 1427

KARACHI, Dec 26: Large scale misdeclarations of description and value of imported goods are being cleared through Customs Administrative Reforms (CARe) working under Model Customs Collectorate (MCC) causing millions of rupees loss in revenue to the national exchequer, official sources disclosed on Tuesday.

Sources said that even the computers were being tampered by importers or their clearing agents with the connivance of customs authorities resulting in huge revenue loss both in terms of description and value of imported goods.

The Central Board of Revenue (CBR) introduced CARe some time back in order to check revenue leakages and also eliminate direct involvement of customs authorities. Under the system imports and exports could be electronically cleared by filing the Goods Declaration (GDs) document in the computer.

However, to check misdeclaration the CBR has also made a selectivity criterion under which the computer removes some of the GDs for physical examination and evaluation of goods. Nevertheless, LCL (less than container) load are still being examined and evaluated on old system of physical inspection.

The CARe is primarily used for FCL (full container) load and is being operative at Karachi International Container Terminal (KICT), Pakistan International Container Terminal (PICT), Qasim International Container Terminal (QICT) and Al-Hamad Terminal for imports and exports.

The massive misdeclaration of description and value of imported goods had been also detected by intelligence wing of Customs and it also submitted some evidences to the CBR after inspecting the difference between Bill of Lading and invoice and that of Good Declaration (GD) produced for the clearance by agents or importer.

The official sources disclosed that recently customs intelligence intercepted two containers (20 feet) and found out that the GDs produced by the clearing agent with regard to contents of these containers (CRN no. 131925 and 131936 both dated 14.11.2006) did not verify with B/L and invoice.

Consequently, sources said that the containers were detained pending further verification and examination. The collector MCC was informed accordingly and requested for joint examination of the containers.

In another case the authorities also detained another container (GATU-0674861) pertaining to CRN No. 131925, which was still lying at KICT. A joint examination of the container by the staff of Directorate General and Model Customs Collectorate resulted in recovery of chemicals namely Glacial Acetic Acid and Propylene Glycol USP against declaration in GD as Hydrogen Peroxide 35 per cent and Methylene Chloride respectively.

According to the findings of the customs intelligence it had been concluded that the RMS (risk management system) of the CARe was either tampered with or failed to point out the serious discrepancy which was alarming as a large number of containers were daily released through the system without examination and proper scrutiny.

It has been also pointed out that the GDs are filed online by user ID and password of the importers based on NTNs, without any legal responsibility on the clearing agents, whereas factually most of the clearance business is being conducted by clearing agents using the user IDs and passwords of importers.

The most daring act being carried out by such scrupulous persons is that most of the NTN holders whose user IDs are used are not the actual importers. As for the sanctity of NTN, it has been observed that a single importer has been allotted as many as a dozen NTN.

Consequently, an importer can have many user IDs and passwords and it is enough to defeat the entire system of CARe and the desire of the CBR to see its success.