ISLAMABAD, May 31: Pakistan has rehired the services of Societe Generale de Surveillance SA (SGS) "to benefit from the Swiss firm's newly developed comprehensive valuation, certification and support service called the SGS Valu Net."

Sources said the Swiss firm which was accused of paying commissions in pre-shipment inspection agreement, has been rehired after a settlement made between the Government of Pakistan and the SGS to withdraw respective civil claims and counter claims against the termination of the 1994 pre-shipment inspection agreement.

A source close to the Central Board of Revenue (CBR) told Dawn that the SGS has created a seamless process integrated into existing customs procedures, which allows the timely clearance of goods while providing customs authorities with necessary supporting information to take a valuation decision.

The source said this decision was made to attract and retain big business and foreign investment. Besides this the firm would help Pakistan in many ways including exports and quality.

"The new tool of the SGS is meant to assist the customs authorities to direct the CBR on how to run its business now it is up to the CBR to test its ability to be a true partner in helping the country to face the challenge of the WTO Agreement on Customs Valuation (ACV)," the source said.

The source said the SGS ValuNet would provide client administration with client-specific verified valuation references, which justified the 'reasons to doubt' under the ACV.

The SGS, he said, had developed a two-pronged approach focussing on valuation certification service in full conformity with the ACV and computerized valuation reference system comprising all verified transactions specific valuation options.

"Under the SGS valuation verification, the SGS gathers and investigates market intelligence in the country of sale and analyses seller/buyer identification and trade level, detailed goods description, restrictions/ conditions of sale, buyer/seller relationship and influence on price, separate payment arrangements and elements from Article 8 of the ACV," the source said.

The source said the valuation verification process could take place prior to arrival of goods, or as part of a port entry verification process, according to the prevailing practice in the client country.

The source said the SGS ValuNet system reported on all ACV determinants, including detailed goods description, importer type and commercial level, valuation method and transaction specifics such as royalties and assisting countries of origin and supply.

Explaining the verification process, the source said the verification process includes value declaration, data management, and valuation investigation, valuation opinions and valuation reference system.

"The government's commitment to protect customs revenues while promoting fair and transparent application of valuation rules which rely on accurate and timely valuation information and for this, the SGS Valunet can be a good beginning," the source said.