KARACHI, March 4: Pakistan Hardware Merchants' Association (PHMA) has expressed its concern over the CBR move to introduce database valuation system for assessment of prices of imported goods.

The association is of the opinion that such a system was in contravention of GATT code of valuation and section 25 of the Customs Act 1969. The PHMA pointed out that Pakistan being one of the signatories of the WTO was bound by its provisions.

Therefore, any other system other than the GATT code of valuation which has also been incorporated in section 25 of the Customs Act is in violation of the WTO order.

The association was also of the opinion that in the past various methods of valuation such as the ITP, pre-shipment inspection did not prove beneficial to the national exchequer.

It also felt that such experiments are opening new doors of 'underhand dealing' and encourage corrupt practices in addition to laborious exercises by all trade bodies and individual importers.

The PHMA demanded that instead of trying to introduce new system of valuation, the CBR should ensure that the GATT code of valuation as incorporated in Section 25 of the Customs Act be implemented in letter and spirit.