20000102

KCAG accuses Customs of violating Gatt valuation system

MUZAFFAR QURESHI

KARACHI: The Karachi Customs Agents Group (KCAG) has accused the Customs of violating the spirit of GATT System of Valuation, which has been introduced from Saturday, January 1, 2000, by determining the import price through the database compiled by them.

Shakil Anwer, the Vice President of KCAG, told Business Recorder that inspite of the propaganda by the CBR that it would adopt the GATT system for Valuation which was based on accepting the declared value of imports mentioned in the invoice ,the Customs valuation staff was insisting on prices of items mentioned in data base copies of which had been provided to various clearance groups in Custom House.

He said that the GATT system had no concept of minimum value of an item and clearly stipulated that values declared by the importers i.e. transactional value agreed between the buyers and the seller, should be accepted for valuation. " They are selling old wine in new bottle", said KCAG vice president.

Shakil Anwer pointed out that the Customs took great pains in holding a workshop to apprise Customs agents of the GATT system of Valuation but what was now being experienced in reality was totally contrary to what was narrated at the workshop.

He urged the CBR to introduce the new system in the real sense and spirit and if it was not able to do so it should seek more time from the World Trade Organisation (WTO) for application of the new system.

The KCAG vice president said that the database of prices compiled by the Customs did not have correct prices for many items and a number of items were also missing. It was feared that the Customs staff would use its discretionary powers to harass the importers.

He warned that the import trade of the country would be adversely affected if the Customs staff did not implement the GATT system in the real sense of the word and spirit.