KARACHI: The Directorate of Post Clearance Audit (PCA) has recommended Directorate General of Customs Valuation for re-fixation of customs values or import trade price of tyres and tubes.
The PCA has recommended upward revision in the customs values of tyres and tubes after mass under-invoicing was detected.
Director Post Clearance Audit, Gul Rehman had the information that group under-invoicing was being done on the import of tyres and tubes.
“Preliminary audit findings show that tyres and tubes are being under-invoiced by approximately 52 percent resulting in significant revenue loss.
According to details, Customs conducted a desk audit of the import of these goods for the period January 2013 to December 2015, and it was found that the assessment of these goods has been made as per valuation ruling i.e Customs value applicable at the time of import.
However, the values declared by the importers were cross-checked by the transaction value in the exporting country. This exercise revealed that value of goods declared to the Customs of shipping country at the time of export of these goods is much higher than the invoice value declared before Pakistan Customs.
Directorate General of Customs Valuation is requested to examine the issue carefully to re-fix the import trade price of the subject goods.
It may be mentioned here that Director Customs Valuation Manzoor Memon had fixed the customs values of tyre recently and the same have been found to be much lower than the prevailing prices in the international market.
Under-invoicing is a major source of revenue leakage at import stage. Moreover, import of goods at under-invoiced values adversely impacts the local industry. Tyre manufacturers have time and again raised voice against smuggling and under-invoiced imports of tyres and tubes.