December 05, 2007	Wednesday	Ziqa'ad 24, 1428

KARACHI, Dec 4: The Federal Board of Revenue (FBR) has decided to stop clearance of all categories of scrap through computerised system of Customs Administrative Reforms (CARe) and put it back for physical examination at Model Customs Collectorates.

Rampant corruption and misdeclaration at CARe had been causing revenue loss worth millions of rupees because many items were being cleared under the garb of scrap, sources close to customs authorities told Dawn.

“You name it, from steel sheet, complete engines, plant and machinery stuffed under the scrap in containers which were being cleared through auto-system of CARe,” a customs agent exhorted.

Undoubtedly, the objective of CARe was to clear goods from port areas in a minimum possible time to cut cost and make trade competitive but unfortunately the entire computer system was either being tampered through different methods, such re-routing and filing of entries at a time of shift over in the system.

Large-scale mis-declarations were being done by commercial importers with the connivance of customs staff and huge quantities of not only dutiable goods but also banned items were cleared under the garb of scrap.

Since containers were not examined under the CARe system, it becomes easy for customs staff to make under-hand deals to clear such consignments.

However, the chief collector of customs (south) Munir Qureshi under the FBR directives issued orders for deleting scrap from clearance at CARe and putting it back to physical examination at Model Customs Collectorate Karachi and Port Qasim.

As a result of the change in the clearance method of all sorts of scrap, the importers will now have to file Goods Declaration (GD) instead of Customs Registration Number (CRN).

It has been further directed by the chief collector of customs that all shipping agents will have to declare scrap consignments in the Bill of Lading (B/L) and Carrier Declarations.

The scrap consignments should be declared as non-PACCS (Pakistan Automation Computerised Customs System) so that they could be processed under ‘One Customs’ or Model Customs Collectorate.

Undoubtedly, CARe had been a blessing for trade and industry, but unfortunately some unscrupulous persons on both sides of the divide (customs and trade) abused it so badly that millions of rupees revenue loss was suffered by the national exchequer.According to reports, some of the customs officials after indulging in large scale corruption and amassing huge wealth through wrong means, have went on long leave with the intention to leave the country before any inquiry was held against them, sources said.