Pakistan and China are going to sign an agreement to control misdeclaration at the country’s ports.
Chairman Federal Board of Revenue (FBR) Shabbar Zaidi, said, “We have authorized Pakistan’s ambassador to China, Naghmana Hashmi, to sign the draft Memorandum of Understanding (MoU).”
Chairman FBR told reporters that under the proposed agreement, China will provide on the spot information regarding exports to Pakistan.
“This cooperation on the government to government level will help control misdeclarations,” Zaidi hoped.
The decision will strengthen the government’s efforts to control corruption within the customs department systematically.
The action was required as every year the country loses billions of rupees in revenue due to misdeclaration of the goods imported from China.
Five years ago, China was facing the same problem at ports as their annual loss due to misdeclarations had reached around $8 billion per annum.
However, the country has successfully reduced the number over the years. The agreement will help Pakistan learn from China’s best practices in controlling this menace.
According to a senior customs officer, imported goods from China worth of billions of rupees enter Pakistani markets.
He said that the entry of these goods without going through proper channels was impossible without the connivance of customs officials.
The revenue board initiated its action against the misdeclaration after analyzing the data from Web-Based One Customs System Glo (WeBOC-Glo).
The analysis report revealed that around 62 percent of the total 69,000 goods showed differences in assessed value and declared value, while approximately 21 percent of products were declared with lesser weight and quantity.