KARACHI: Chief Collector South Ashad Jawad has commissioned an exercise to check the misuse of Electronic Import Form (EIF) and the mis-declaration of PCT code thereof of the imported consignments.
Ashad Jawad has formed a committee in Appraisement East comprising Collector Mohsin Rafiq, Additional Collectors Mushtaq Shahani and Tahir Abbas. Similarly, a team comprising Additional Collectors Haroon Malik and Moazzam Raza is formed at SAPT, while Collector Sanaullah Abro and Additional Collector Javed Sarwar Shaikh at Appraisement West will pursue this grave issue.
EIF (Electronic Import Form) is a tool used by the government to monitor the source and outflows of foreign remittances and checks the goods that are imported without foreign exchange through the State Bank of Pakistan.
However, SBP has imposed a restriction on issuance of EIFs for import of consignments given the dwindling foreign exchange reserves of the country. Due to these restrictions, large number of imported consignments are stuck. The importers have to pay ruthless demurrage and detention to shipping lines and terminal operators, which are foreign owned. These shipping lines and terminal operators promptly transfer their revenues abroad in foreign exchange putting severe pressure on the country’s resources.
EIF is a pre-requisite for the opening of Letter of Credit (LC).
Therefore, importers are left with no option but to use fake EIFs and use one EIF for multiple consignments. Thousands of consignments have already been cleared on fake and counterfeit EIFs through mis-declaration of PCT codes causing severe revenue loss to the national exchequer.
A Contravention Report was served on Bahawalpur Steel Mills for mis-declaring the PCT code of imported steel sheets to escape the condition of attaching EIF with the Goods Declaration.
A Contravention Report was also served on M/s Unique Industries for mis-declaring the PCT code of imported solar panels. The importer attached the EIF having description red kidney beans, while the goods were found to be solar panels.
Customs Peshawar also recently detected a case of evasion of Electronic Import Form (EIF) requirement by some importers who claimed exemption under Chapter 99 of the HS Codes at the time of filing Goods Declarations (GDs) in the WeBOC system.
Moreover, due to these restrictions, there has been a considerable surge in smuggling. Now, the smugglers are openly advertising non-duty-piad goods and even prohibited goods on social media, which are delivered at the door steps of buyers.
Customs Appraisement East and West and SAPT have also issued an alert regarding violations of EIF. Every imported consignment will be scrutinized.
Customs has no jurisdiction or system to check or verify the authenticity of EIF. However, in order to re-use an EIF or out rightly circumvent the requirement of EIF, importers mis-declare the imported goods. Mis-declaration of PCT comes under Customs’ domain.
Commercial bank issue EIF to importers, and these bankers are reportedly receiving bribes from importers for issuing EIFs and opening LC.
A trade leader said EIF mechanism needs to be suspended forthwith, and re-designed to remove flaws. He further said payment for imports in Pakistan from foreign bank accounts as well as duty and taxes payment in foreign exchange should be allowed.