20000122

Business dissatisfied with

Gatt Valuation Code

implementation

RECORDER REPORT

KARACHI: A largely attended meeting of the representatives of trade bodies and KCCI under the umbrella of FPCCI held on Thursday, expressed serious concern over the manner the Gatt Code of Valuation was being implemented by customs.

The meeting was held in Customs House, Karachi and was attended by Meer Fawad, Member Customs, the Controller of Valuation, the Collector Appraisement. The FPCCI was represented by Tariq Sayeed, Sheikh Shakeel Ahmed Dhingra, Mansha Chura. KCCI was represented by Iftikhar Ghani Vohra, Chairman Valuation Committee. A large number of representatives of the trade bodies also attended the meeting.

From the very outset the CGO 57/99 dated December 30, 1999 issued by CBR was blamed for breeding corruption and was termed violative of Gatt Code of Valuation. The provisions of discretions for Customs officials at various levels in accordance with their positions have given them powers to settle the differences between declared values and data entry values.

Besides Gatt Code of Valuation does not envisage any such reference to CGO. The attention of Custom was invited to reports that the CBR Chairman had said that 85 percent officials of CBR from bottom to top were corrupt. If provided sweeping powers through CGO 57/99, valuation would remain their domain to the detriment of public ex-chequer.

When the attention of Controller of Valuation was reminded of the position which he had taken in FPCCI that the implementation of new system would be frictionless and contact free at the time of completion of bills of entry, he replied in the affirmative as to his earlier assurance.

Mir Fawad, CBR Member Customs said that CBR would consider revision of CGO in the light of inputs as of January 21. FPCCI representatives also agitated the issue that amendments in custom law, the SRO issued for proceduring valuations, and the latest CGO 57/99 had altogether changed the Gatt Code of Valuation.

The Customs Collector Appraisement pressed for continuation with this discretionary formula provided in CGO 57/99 for speedy clearances in disputes and feared that withdrawal of this CGO may retard the pace of completions of bills of entry.

Customs disclosed that a procedure had been worked out to streamline the implementation and ensure transparency in practice. However the procedure was not spelt in the meeting.

FPCCI pointed out that the present database entry was not supported by Gatt Code of Valuation as it accommodated ITP, which was arbitrarily fixed price concept in practice.

It was agreed by Customs, on the protest by trade, that database would be revised every 15 days.

The meeting reached a consensus for updating the prices and verification thereof. The associations shall provide prices with supporting bases for acceptance by Customs to become part of data entry base.

It was agreed that the claims of clearances against declared value, if disputed would be referred to committees comprised of representatives of associations, customs appraisement and valuation departments and FPCCI.

The case of Iron & Steel for revision was agreed for discussion and resolution on separate base. Ibrahim Panwala, Senior Vice-President of FPCCI's Valuation Committee who was also presented made a forceful case against the data base which was well taken by the authorities present at the meeting.