Latest news with #GoodsDeclaration
Business Recorder
22-04-2025
- Business
- Business Recorder
Transportation of goods: Tribunal rejects customs' objection regarding change of vehicle
LAHORE: A tribunal has rejected customs objection regarding change of vehicle for transportation of imported goods as no such rules were mentioned in the show-cause notice which obligates the importer to retain the same vehicle for transportation purposes. According to details, a Collectorate of Customs had intercepted a vehicle/truck for scrutiny purposes. Driver of the said vehicle produced Goods Declaration (GD) however, it was not accepted on the ground of mis-declaration and discrepancies between the goods mentioned in the GD and the goods loaded in the vehicle. After the issuance of notice in accordance with law, the matter was adjudicated by the department. The Collector of Customs (Adjudication) confiscated the goods outright in favour of the state. However, the vehicle and the container were given to the lawful claimant/owner of the seized vehicle to redeem the same against payment of redemption fine. The importer challenged the order in the appellate tribunal and contended that goods were lawfully imported after making due taxes of the same through GD and got the goods clearance from the concerned clearance collectorate on the basis of valid documentation. However, the seizing authority illegally and unlawfully deprived him from his lawful trade and seized the goods along with the vehicle. He further contended that there was no justification for the customs authorities even to keep the goods and vehicle for a while and the GD was rejected on unreasonable grounds without making verification from the concerned authority. The appellate tribunal took into consideration of this material aspect of the matter and decided in favour of the importer, saying that the relevant customs authority rejected the plea of the importer that GD did not match with the seized truck. It pointed out that the said belief of the seizing authority was based on assumption as no reference of any other admissible document was given in this respect. The tribunal also noted that the seizing authority had objected regarding the vehicle with different number used for transportation of goods against the one brought the vehicle within the country. The tribunal pointed that the department was unable to show if there is any restriction on changing the conveyance/vehicle. Copyright Business Recorder, 2025
Express Tribune
21-03-2025
- Business
- Express Tribune
PM seeks report on customs scam
Officials of Pakistan Customs' Drug Enforcement Cell say Chandio was accompanied by an elderly woman. PHOTO: FILE Listen to article Prime Minister Shehbaz Sharif has sought a report about large-scale tampering of Goods Declaration (GD) forms through breaches in the country's imported goods clearance system, as the Pakistan Single Window (PSW) Company claims its officials were not involved in the scam. In response to the massive breach, the government-owned PSW admitted the existence of the issue but said that "some importers and clearing agents took advantage of a previously unknown vulnerability in the WeBOC (Web-Based One Customs) system." The PSW, which has been operating WeBOC since 2022, tried to distance itself from the system. Sources said that PM Sharif has sought a report from the Prime Minister's Inspection Commission (PMIC) about the scam, which was reported by The Express Tribune this week. The PMIC began its work on Friday. The PM's Office asked the Inspection Commission to provide a report for the Prime Minister's information within three days. The Express Tribune had reported that in a major system breach, importers tampered with over 10,000 GD forms by altering originally declared quantities and descriptions of goods in connivance with the PSW to evade billions of rupees in taxes. The scam has shaken the belief that a GD formthe document carrying details of importing companies, agents, imported goods, and applicable duties and taxesonce filed online, cannot be altered or changed. "The claim that the data fields in the GD were manipulated by traders and clearing agents in connivance with PSW officers is unfounded and unsubstantiated, without a clear understanding of how the system works or PSW's role in customs clearances," according to the government-owned company's statement. WeBOC is a web-based, computerised system designed to facilitate the automated customs clearance of import and export goods. The government-owned company admitted that WeBOC has been "under PSW's management since 2022" and said that the system has been significantly improved, aligning with the government's Digital Pakistan vision. However, the government-owned company did not clarify why it failed to detect the "previously unknown vulnerability" since 2022, or if WeBOC had been significantly improved, why these manipulations continued until recently. It further added that "facts of the case are that some importers and clearing agents took advantage of a previously unknown vulnerability in the WeBOC system to alter the declared HS codes/weights in the declarations filed at the dry ports." "This alteration, effected through changes in the browser script, did not need any help from WeBOC, PSW, or Information Technology staff," stated the PSW. The PSW said that whether the importers and clearing agents "were able to bypass the hardcore customs controls applied physically at the assessment and examination level and benefit from tax evasion or fraud remains to be established by customs authorities." The PSW also admitted in its statement that "the phenomenon of Goods Declaration (GD) manipulation in the dry ports stretches back several years and in fact pre-dates Single Window implementation." Its statement further added that the existence of pre-PSW manipulation "is acknowledged in the news report itself." "Hence, system vulnerabilities and glitches in the system developed before PSW's existence or its subsequent takeover of the WeBOC system cannot be ascribed to PSW." After The Express Tribune raised the issue with the Federal Board of Revenue (FBR), the FBR chairman was ordered to fix the system. The FBR has already ordered a post-clearance audit of Transshipment (TP) GD forms, effective from the fiscal year 2022. The changes had been made to the TP GD forms meant for dry ports. The Express Tribune reported that to remain undetected, the corrupt network did not alter the Harmonised System (HS) codea unique numerical identifier for traded goods. However, they manipulated the descriptions and quantities of goods. The company stated that "while PSW acknowledges the gravity of the issues highlighted, it is imperative to provide a comprehensive perspective to ensure accurate public understanding and to avoid maligning an organisation that prides itself on transparency and professional integrity." The government-owned company stated that PSW has shared the complete data of such GDs, including those that were cleared before PSW's takeover of the WeBOC system, with customs authorities for a post-clearance audit and determination of actual facts. A fix was also immediately deployed in the system to prevent the recurrence of such incidents in the future, it added. The company further stated that the fact that PSW does not have any physical presence at any customs station, nor allows members of the trade to interact with its staff, has contributed to PSW's stellar reputation as an ethical and transparent organisation. It said that PSW is primarily a data exchange platform and has no role in customs clearance on the ground. Moreover, PSW does not receive any funding from the public exchequer, instead developing and implementing a sustainable business and operating model that is reinvested in improving the PSW platform and its allied systems. However, it charges a handsome fee on every GD filed by importers. The FBR spokesperson had confirmed to The Express Tribune before the story was published that "HS codes and quantities were changed in the declarations filed at dry ports."
Express Tribune
18-03-2025
- Business
- Express Tribune
Customs fraud causes loss of billions
Listen to article In a major system breach, importers have tampered with over 10,000 Goods Declaration (GD) forms by altering originally declared quantities and descriptions of goods in connivance with the Pakistan Single Window (PSW) to evade billions of rupees in taxes. The scam has shaken the belief that a GD formthe document carrying details of importing companies, agents, imported goods, and due duties and taxesonce filed online, cannot be altered or changed. The Federal Board of Revenue (FBR) has ordered a post-clearance audit of Transshipment (TP) GD forms, effective from the fiscal year 2022, after The Express Tribune pointed out the massive system breach. The tampering was carried out in collaboration with officers of the PSW, a government-established company responsible for handling trade-related business. To remain undetected, the corrupt network did not alter the Harmonised System (HS) code — a unique numerical identifier for traded goods. However, they manipulated the descriptions and quantities of goods, according to documents reviewed by The Express Tribune. In response to inquiries, an FBR spokesperson confirmed that "HS codes and quantities were changed in the declarations filed at dry ports." However, he added that "nonetheless, these consignments were subjected to physical and documentary scrutiny by Customs at dry ports." The large-scale tampering had been ongoing for years and was uncovered through log edits of these GDs, according to sources. FBR Chairman Rashid Langrial appears determined to dismantle the corrupt network and immediately ordered an inquiry. However, some senior officers attempted to 'technically manipulate' the issue. Initially, FBR officials focused only on cases where HS codes were changed, ignoring alterations in descriptions and quantities. When the issue was raised again, the FBR, on March 13, ordered "a detailed importer-wise analysis of the fields in the Goods Declarations as initially declared at the time of filing the TP GD at the port of origin (Karachi ports) and any subsequent modifications made by the importer or agent at the time of filing the GD at the port of destination (dry ports)." This is the second major scam that has rocked the Customs Department, again involving the PSW. Earlier, a premier intelligence agency uncovered a nexus between 78 corrupt FBR officials and smugglers. Following an Express Tribune story, Prime Minister Shehbaz Sharif ordered the Prime Minister Inspection Commission (PMIC) to launch an inquiry. One of the accused individuals named in the intelligence agency's report currently holds a key position in the Ministry of Finance and has also been summoned by the PMIC. Modus operandi Details show that the importer-PSW officer nexus targeted GD forms originally declared at Karachi port but destined for inland dry ports such as Peshawar, Multan, Lahore, or Faisalabad. The common method of tampering involved declaring at least two types of goods in a GDone subject to a high customs duty and another with a lower duty rate. At the final stage, the quantity of the high-duty item was drastically reduced, while the low-duty item's quantity was increased proportionally to maintain the total weight of the consignment. For instance, a transshipment GD was filed in Karachi on November 26 last year, ending in digits 173, and its home consumption transshipment was filed in Azakhel, Peshawar. The estimated tax evasion in this single case is Rs13.9 million. Similarly, another GD, ending in digits 123, was filed on the same date in Karachi with two declared items. The estimated revenue loss in this case is Rs14.2 million. Sources revealed that thousands of such cases exist, and a deeper investigation could expose the full extent of the fraud. On August 7, a GD ending in digits 026 was filed in Karachi. The TP declaration was manipulated, reducing the actual weight of a heavy-duty item from 10,000 kilograms to just 100 kilograms. This manipulation resulted in an estimated duty and tax evasion of approximately Rs12 million under HS Code 5804.1000. Sources disclosed that, a few years ago, the data source code was transferred from Pakistan Revenue Automation Limited (PRAL)an FBR data subsidiaryto the PSW. They explained that such tampering would not have been possible without the active involvement of individuals with system controls at PSW. The government had set up the Single Window company to handle tasks previously managed by Pakistan Customs. Employees in this company receive hefty salaries, and many were hired from Pakistan Customs. FBR's response An FBR spokesperson stated that importers exploited a system glitch to evade duties and taxes. However, after customs assessment at destination dry ports, the collected duties and taxes were found to be higher than the declared amounts. To ensure no revenue loss, the Customs Wing has directed the Post Clearance Audit wing to review all affected GDs. The spokesperson confirmed that HS codes and quantities were altered in declarations at dry ports, but the consignments still underwent physical and documentary scrutiny by Customs. Under the standard transshipment GD process, the initial declaration's contents cannot be changed when converting a TP GD to a home consumption GD at dry ports. Each dry port's customs administration is legally bound to verify declarations against actual imported goods. Customs officers have access to the original TP declaration, but scrutiny only intensified after The Express Tribune exposed the scam. A review of data found that fewer than 2% of total TPs filed over the past five years showed discrepancies. However, changes were made by importers before customs assessment, meaning GDs were verified before clearance. The FBR claims to have fixed the glitch and has ordered an audit. If adverse findings emerge, the audit scope may extend back to 2015.
Express Tribune
01-03-2025
- Automotive
- Express Tribune
Dealers reject Sindh's new vehicle registration law
Listen to article Dealers of motor vehicles and their association have urged the Sindh government and the Sindh Excise, Taxation, and Narcotics Control Department to review the newly amended law requiring vehicle registration within a month. They have also demanded a three-month delay in its implementation to allow them time to clear their existing stock. Reacting to the enforcement of the newly amended Section 23 of The Provincial Motor Vehicles Ordinance 1965, the dealers have rejected the amendment, calling it unacceptable. They argued that laws should be made in accordance with practicality, and such rigid regulations could harm both dealers and customers. Under the new law, they said, the government has reduced the registration period from six months to just one month for all motor vehicles, including motorbikes, rickshaws, and cars. Expressing concerns over its sudden implementation, dealers said the law would be difficult to comply with. According to the amended law, "23-A. Penalty in default of registration. (1) If a motor vehicle, imported into the country by any owner or showroom motor dealer, or a motor vehicle manufactured in the country, or invoiced by any authorised showroom dealer or manufacturer, such motor vehicle shall be liable to be registered under section 23, within 30 days from its date of Goods Declaration/Bill of Entry; in case of import, or from the date of invoice in case of local manufactured vehicles. (2) Any vehicle imported or locally manufactured, to be used in any other province, shall be transported through a carrier and shall not (be driven) in the province of Sindh in any case without registration. (3) If an owner or showroom/motor dealer, fails to register such motor vehicle within the specified period mentioned under sub-section (1). he/she shall, besides the registration fee prescribed under the rules, be liable to a penalty mentioned in the table hereunder; provided that if the motor vehicle, whether imported or manufactured in the country, is sold by the owner/showroom/motor dealer who shall be responsible for registration of such motor vehicle, before handing over to the buyers." The penalties for delayed registration include Rs5,000 for motorbikes, Rs10,000 for rickshaws, and Rs10,000 to Rs200,000 for four-wheelers, depending on the delay period, which can range from 30 to 180 days. Motorcycle dealer and auto sector expert Muhammad Sabir Shaikh has demanded that the law be reviewed by June 30 and that all stakeholders be consulted before finalising its implementation. He warned that if enforced without revision, the law would severely impact businesses and the already struggling auto industry. "Businesses are already suffering, and such laws will discourage economic growth. The vehicle registration timeline starts from the day a vehicle leaves the factory, and expecting dealers to sell all their stock within 30 days is unrealistic. Even within six months, not all showroom models get sold," he said. He further suggested that instead of imposing such strict deadlines, the Sindh government should adopt Punjab's system, where dealers can complete the registration process online without bureaucratic hurdles or kickbacks. Karachi Motorcycle Dealers Association Chairman Muhammad Ahsan Gujjar echoed similar concerns. "As law-abiding citizens and dealers, we respect all laws, but we urge the government to defer this amendment for at least three months so dealers can clear their existing vehicle stocks. We only became aware of this law a few days ago, and now we are expected to ensure registration within a month," he said. He explained that a motorcycle typically takes about a week to reach a showroom from the factory, leaving dealers with only about 20 days to sell it or face penalties. Gujjar further highlighted that a motorbike dealer's commission is around Rs2,000 per Chinese-made bike and 2% per Japanese-made bike. However, due to tough market competition, dealers often sell at even lower margins. An official from the Sindh Excise, Taxation, and Narcotics Control Department defended the law, stating that the Sindh Assembly passed the amendment to curb unregistered vehicles and vehicle theft. "The law will assist law enforcement agencies by pressuring vehicle owners and dealers to ensure timely registration," the official said.
