CBR not yet ready to launch post-clearance audit

The Central Board of Revenue (CBR) is not yet fully prepared to launch the 'Post-Clearance Audit' (PCA) as the project is being reviewed to remove bottlenecks before making its countrywide launch. CBR officials told Business Recorder on Monday that the Board was reviewing the entire project with the help of experts and senior tax officials to make it foolproof.
So far, tax officials have asked the CBR Customs Wing and audit officials to review the whole working to make the PCA project more effective. The CBR team would obtain necessary data from the Project Director, PCA, Ali Salman Abassi, to further improve the project. The Board would not change the Project Director, but engage some experts to ensure proper implementation of the project to be launched.
When this scribe approached customs department, sources clarified that there was no delay in the implementation of the project. "This is a huge project, for which necessary rules and regulations have been chalked out and infrastructure is in place. The aspect of training is also under considering for proper working of the project," they added.
Other relevant officials claimed that the PCA has been made part of the rollout program of Pakistan Customs Computerised System (PACCS), which would considerably delay the project.
In two different seminars, held at Islamabad and Lahore last month, Project Director, PCA, had announced that the Board would launch PCA in 2007-08 budget to select around one/two percent of high-risk importers for test audit based on their corporate information including third-party data of banks and clearing agents.
It was also announced that test run of the system would be conducted in July 2007 and it would be replicated across the country within one year. Selection procedure may involve checking of historical database of importer, price research system, corporate record database and stocks in the warehouses etc. Under the proposed system, importers would be selected for audit, irrespective of the fact that the importer is a multinational company or a small entity. Selectivity criteria may take up any case ie a specific commodity group, big, medium or small importer.
It was also conveyed to the stakeholders that the databank was still to be established. Out of total 40,000 active importers, 3 percent cases for PCA would only be selected after making this system fully operational. It is impossible to conduct 1200 audit (3 percent) of importers in one year. So initially one percent importers could be selected for audit. About 100 audits in one year seemed to be reasonable with the available workforce and infrastructure.
As most of the tax officials were unable to give the final date for launching the project, it seemed that the Board is not satisfied with the overall developments taking place in the PCA project.