November 02, 2007	Friday	Shawwal 20, 1428

KARACHI, Nov 1: Revenue collection on account of customs duty during first quarter (July-Sept) of current fiscal showed a nominal decline of Rs29.14 million at Rs22.460 billion or 0.12 per cent over the corresponding period last year when collection stood at Rs22.489 billion.

According to official figures, revenue collection on account of customs duty during July 2007 stood at Rs6.860 billion as compared to Rs6.956 billion registered in July last year.

However, there was a slight improvement in duty collection in August 2007 when collection stood at Rs7.386 billion as against Rs7.352 billion recorded in August 2006.

Duty collection in September 2007 remained higher at Rs8.213 billion as against Rs8.180 billion collected in September a year ago.

Lesser revenue collection on account of customs duty is being reckoned on account of leakages and rampant corruption.

However, defective clearance system evolved by the Federal Revenue Board (FBR) under Customs Administrative Reforms (CARe) and One Window Customs was the main cause of revenue loss.

Karachi Customs Agents Association (KCAA) general secretary Arshad Jamal said there are a host of factors which are not only causing revenue loss but are also resulting in huge loss to trade on account of demurrage and long delays.

He said Customs Model Collectorate (MCC) has adopted a system of clearing goods on the basis of first-in-first-out but this was causing long delays and importers have to pay huge amounts towards demurrage and detention charges.

As a result of this, Mr Jamal said cost of import rises which is ultimately have to be paid by end consumer. Undoubtedly, he said the customs officers are duty bound to stop revenue leakages, but they are equally responsible for facilitating trade and ensuring smooth clearance of goods from ports.

He was critical about a ban on presence of importers or their clearing agents at a time of examination of imported goods and added that how could customs officials carry out their duty where there will be no labour and machinery which has to be arranged by the importer or his agent.

Arshad Jamal alleged that influential political figures are flagrantly abusing customs laws and its system. He said that from MCC goods are being cleared on fake NTN (National Tax Number) by using I D Password for making auto-clearance of imported goods.He said that it has been also witnessed that through one Bill of Lading several containers and import consignments are cleared which result in huge revenue loss to the country.

Syed Amjad Shah, a member of KCAA, said that Pakistan Automation Customs Computerisation System (PACCS) and One Window Customs has resulted in creation of administrative anarchy at all levels.

He said the hasty changes in customs administrative reforms and launching of CARe and one-window have inflicted colossal loss to the national exchequer which is much higher than the losses suffered when pre-shipment inspection companies were introduced.Despite the fact that customs authorities have disallowed re-routing or clearance through computers, but it was still going on and this shows how the lower staff is powerful.

Import of Indian fabric is still rampant and importers with the connivance of lower customs staff change the label and declare it as Chinese product. This was damaging domestic textile industry which is already under a deep crisis.

Similarly, beatle-nut is also being cleared without being examined and there is a fixed amount for giving this facility to importers, Syed Amjad Ali Shah alleged.

Many banned items are being cleared through diplomatic consignments, such as alcohol. Auto parts and chemicals are also being cleared through mis-declaration, he added.