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LAHORE: The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has rejected the audit of duty drawback claims of the exporters, saying it is totally contradiction of Pakistan Customs, which claims to move towards automated clearance procedures as part of reform agenda, but simultaneously forcing the exporters to do more paperwork by sending notices to them despite the fact that all information of exporters are available in the system.

PRGMEA north zone chairman Sheikh Luqman Amin appreciated the efforts of Pakistan Customs to develop an e-commerce automated clearance facility in collaboration with the State Bank, saying the move has proved to be very effective for SMEs, helping them promote their business, especially in era of post-corona economic slowdown but it is unfortunate that Post Clearance Audit system is still manual, despite having all kinds of exporters information, creating problems for the industry.

With the slogan of paperless system the Pakistan Automated Customs Clearance System (PACCS) was launched as pilot programme and moved on later to the Web Based One Customs system (WeBOC), but Post Clearance Audit system has not been digitalized completely so far, which is very unfortunate, he added.

Sheikh Luqman said that the exporters have been receiving substantial number of notices during the last couple of weeks from the Directorate of Customs-Post Clearance Audit (Central), asking to submit papers of their exports in details.

“No major recovery can be possible from such notices which are just a waste of time and resources will be wasted as the rebate amount is less than one percent,” he added. The audit of such a meagre amount, forcing the exporters to submit details manually is totally wrong practice, which is not in favour of trade and industry and it must be stopped immediately as it is being misused to harass the business community.

The PRGMEA zonal chairman urged the Finance Minister Shaukat Tarin, FBR Chairman Dr Muhammad Ashfaq Ahmed and member Customs to stop the officials from harassment of taxpayers and withdraw all notices sent to the exporters. He regretted that instead of correcting the system digitally and making it more efficient and automated, the Customs has started sending notices manually, a way to open flood of corruption.

The present practice may pollute congenial business environment created due to hard efforts by the government. He expressed the hope that the Finance minister would take stock of the situation and issue necessary directions to the Customs Directorate for immediate withdrawal of notices in the larger interest of the business environment in the country and fostering of exports.

It is to be noted that Directorate of Customs-Post Clearance Audit (Central), in a notice, sent to the exporters, has announced to conduct comprehensive audit of Duty Drawback claims, transferred and credited directly by the SBP to bank account of exporters as envisaged under Customs rule.

“Presently duty drawback claims sanctioned against exports made from Lahore, Faisalabad, Sialkot and Multan ports pertaining to your organization are lying with PCA (Central) Lahore for audit verification purpose. It is therefore requested that documents relating to duty drawback claims including bank credit advices, copies of commercial invoices, packing list and copies of bills of landing, sanctioned during the period from 01-07-2019 to 31-12-2021 may be provided for the purpose of carrying out of the comprehensive audit,” the notice concluded.

Copyright Business Recorder, 2022

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