KARACHI, June 4: The CBR is expected to announce duty adjustment on a large number of goods in the budget 2007-08 to check rampant mis-declaration of certain goods. Sources said presently a large number of imports are being mis-declared to evade higher duty structure.

The customs authorities have increasingly been witnessing that goods with higher tariff, having similar composition or closer identity are, being cleared against those having lower duty structure.

As a result of this, the national exchequer has been suffering loss worth billions of rupees in terms of duty.

The decline in overall revenue collection has been witnessed on account of customs duty despite the fact that there had been an over 18 per cent growth in imports during the current fiscal.

According to estimates, revenue collection on account of customs duty is short by around eight per cent. With higher imports, the country should have earned more revenue on account of customs duty.

Sources said the Appraisement Collectorate, Karachi, has also made some recommendations to check rising mis-declaration, particularly through Customs Administrative Reforms (CARe) working under Model Customs Collectorate at Karachi Customs.

The tampering of computer system for mis-declaration is one of the major factors which has been resulting in loss worth billions.

Sources disclosed that steel and steel products are on top of the list where major duty adjustments would take place.

Steel products have been increasingly mis-declared to evade higher tariffs, they added.

Besides, re-rollable and used steel articles, plated or coated, cold-rolled steel, steel cold wire, line pipe welded or stainless steel and aluminium foil are such steel products which are expected to witness large-scale duty and tariff adjustment in the budget being announced on Saturday.

Presently other steel items are being dis-declared under the garb of re-rollable scrap.

Under the Pakistan Customs Tariff (PCT), other steel products are subjected to customs duty, ranging from five to 25 per cent.

Consequently, inappropriate classification of re-rollable used steel articles as scrap (given under heading 7204, read with import Policy Order, 2006-07) is the main cause of dis-declaration.

Therefore, the customs authorities have suggested to the CBR that the PCTs 7204, 1010 and 7204, 4910 may be deleted and re-rollable articles may be incorporate in chapter 99 – 99.42 (old and used articles of iron and steel for re-rolling).

Presently plated or coated with chromium oxides or with chromium and chromium oxides steel sheets have a customs duty of 10 per cent, but it is being suggested that these products under PCT heading 7210..5010 of secondary quality be charged import duty at 20 per cent and 7210.5090 at 10 per cent.

Similarly, cold-rolled steel strips of thickness below 0.5mm and up to 100mm wide should be charged customs duty at 10 per cent from the present rate of five per cent.

The duty on steel cold wire of specification swg-20 to 34 is expected to be increased to 20 per cent from 10 per cent.

The duty on line pipe welded stainless steel may be reduced to five per cent from 10 per cent.

The CBR is likely to introduce a new sub-heading for printed backed aluminium sheets as follows: not backed with PCT No.7607.1920 printed aluminium foil 10 per cent; 7607.1990 – other 20 per cent.

The backed printed aluminium foil under PCT heading 7607.2010 would be charged customs duty at 10 per cent and PCT heading 7607.2090 other 20 per cent.