20000129

Export of textile products

Customs detect 7 cases

of over-invoicing

RECORDER REPORT

KARACHI: The Collectorate of Customs (Export) detected seven cases of over-invoicing in export of textile products and saved the exchequer from loss of millions of rupees in the form of rebate.

The cases were detected in mostly bedwear consignments destined for the Europe, Gulf and African countries and the export prices were lowered by the Price Check Committee in accordance with the prevailing market prices in consultation with the representatives of the Karachi Chamber of Commerce and Industry and the Pakistan Bedwear Exporters Association.

The Price Check Committee met at the Collectorate and reviewed 14 valuation disputes/related to the export consignments. The Committee is headed by Ghulam Ahmed, Additional Collector, and has representatives from the trade.

Of the 14 cases of over-invoicing referred to the Committee by the Customs Examination staff seven were cleared on fair value which meant the prices were found correct. However in other seven cases over-invoicing was confirmed and the Committee reduced the price by 0.5 dollar to 2 dollars depending on the nature and quality of products. The consignments were then cleared for shipment.

It may be pointed out that under the rules, the Customs allows passage of export products with a price difference upto 10 percent. However, if the prices declared by the exporter higher or lower more than 10 percent of the prevailing market price, the cases are referred to the Price Check Committee which reviews the price and corrects it in accordance with the market price.

The export consignments referred to the Committee were destined for the UAE,, Kenya, Congo, Germany and Saudi Arabia.

There are separate price check committees for different products which meet atleast once a week to review cases of over and under invoicing. The committee keeps a strict vigil on these cases which are directed to extort more rebate in case of over-invoicing and prevent remittance of some portion of the export proceed as a result of under-invoicing.