ISLAMABAD, Dec 26: The Central Board of Revenue (CBR) has decided to set up a comprehensive reference value database for maintaining uniformity in assessment of imported goods at all custom stations.

Official sources told Dawn on Friday that the reference value, which would be compiled in two volumes, would help, to a great extent, in reducing the chances of under-invoicing and tax frauds causing harm to the local industries.

These books after vetting would be available at all custom stations with assessing officers for facilitating the importers as part of the re-structuring of the tax administration.

Such a value reference guide could be very useful tool for the assessing officers and it would also help in maintaining uniformity of assessment at all custom stations, the officials added.

It was observed that the occasional discrepancy in valuation of identical goods cleared from north and south cities of Pakistan was another area of concern for traders. According to them, there have been instances where identical goods cleared from Karachi were assessed at a value different than at Lahore.

Elaborating further, the officials said that the minimum value in these books would not be binding for assessment purposes but it would be used as guidance in assessing the imported goods.

To check under-invoicing, the officials said, the customs authorities have already introduced the concept of post-clearance audit (PCA) allowed for speedier clearance of goods with the audit being performed subsequently at the importer’s premises.

According to the officials, the successful implementation of PCA required effective enforcement and provision of trade facilitating measures and simplified procedures in cargo processing and valuation.

“This is not a positive signal as the whole system may collapse if the record-keeping requirement is not ensured and the resistance continues in the foreseeable future,” they said.

Under the provisions of WTO agreement on valuation, developing countries could apply to WTO for maintaining for certain period minimum values for certain imported items, which might hurt the local industry.

This is legal recourse to check under invoicing and protection of local industry. Pakistan has applied to WTO for this facility several items, however, the request has not been accepted by WTO, the officials added.

Pakistan implemented the new GATT Code of valuation on January 1, 2000, which deals with the bonafide trade, which ignored the reality of rampant fake invoicing that was practised throughout the world including Pakistan.