KARACHI, Aug 30: Although imports increased by 61 per cent in July, revenue collection has failed to correspond with the increased quantum of imports and rose only by 37 per cent.

According to official figures, July imports stood at Rs246.033 billion as against Rs153 billion in the same month last year. Against this, customs duty collection during July stood at Rs12.384 billion or was 37 per cent higher over duty collection of Rs9.067 billion made in the same month last year.

There are multiple factors causing shortfall in revenue collection.

The customs authorities have issued 1,270 notices to holders of passwords for confirmation purposes. They are suspecting that these passwords used by importers and customs agents for auto clearance are fake, and if confirmation was not received, these passwords would be cancelled.

Similarly, 33 FIRs have been registered against the exporters suspected to be involved in exporting banned items. However, large-scale mis-declarations have ultimately forced customs to lodge FIRs against importers and customs agents, sources said.

Sources further said that there had been a mis-declaration in import of ceramic tiles, chemicals, auto-parts, steel, fabrics etc.

Along with auto clearance, the imported goods have been checked and cleared through manual examination.

Ever since clearance of imported goods is being made at dry ports, there has been an increase in under-invoicing.

Even the goods sold in city markets, first move to dry ports for clearance and are brought back. As a result, there is a rapid fall in revenue collection of Karachi and Qasim appraisements, sources said.

There is no counter check for such malpractices at the dry ports where no intelligence agencies are working and this has encouraged under-invoicing which indicates that valuation advices are not being implemented for collecting customs duty, said a source.