KARACHI: In a landmark decision, the Sindh High Court (SHC) has garnered praise from customs authorities for accepting the differential value between Export GD (Goods Declaration) and Import GD, setting a significant precedent in trade regulations. The ruling aims to prevent revenue evasion and secure substantial government funds.

The ruling came to light in the case of M/s Causis Mass Transit, where the SHC acknowledged the disparity in the declared value of electric buses between the Chinese exporter and M/s Causis Mass Transit, an importer based in Pakistan. M/S CAUSIS Mass Transit had initially sought clearance for the electric buses at a declared value of $45,000 per unit.

To establish the accurate value of the imported electric buses, the SHC compared the Export GDs filed with Chinese Customs by the exporter with the GD filed by the Pakistani importer/agent. Detailed scrutiny revealed that the description, specification, port of loading and discharge, and chassis numbers mentioned in the Import GDs were consistent with the corresponding details found in the Chinese Customs’ Export GDs.

The Export GDs indicated a declared FOB (Free on Board) value of $211,330 per unit. Taking into account additional factors such as freight charges, the overall value of the goods, as per the evidential export GDs, amounted to $214,300 per unit.

This groundbreaking ruling marks the first time that the High Court has recognized the Export GD differential as an acceptable value. Consequently, lower forums, including Tribunals, will no longer be able to reject the export GD value, ensuring a significant boost in government revenue that was previously susceptible to evasion.

Chief Collector Ashad Jawwad commended the efforts of Collector Aamir Thaim, Additional Collector Umar Shafiq, Additional Collector Mushtaq Shahani, Deputy Collector Dr. Zohaib, and Superintendent Malak Hashim for their diligent pursuit of the case, which ultimately led to the favorable ruling from the High Court. Their dedication and commitment have played a pivotal role in securing this groundbreaking decision that will have far-reaching implications for the trade and revenue landscape in Pakistan.

With this historic ruling, the Sindh High Court has taken a significant step in curbing revenue evasion and fostering transparency in import-export operations. The decision is expected to encourage compliance, deter fraudulent practices, and ensure a fair and equitable trade environment in the country.