Customs empowered to determine valuation formula: goods to be exported

The Federal Board of Revenue (FBR) has amended Customs Act 1969 through Finance Bill (2010) to empower the customs authorities to determine valuation formula for the goods to be exported from next fiscal and substantially enhanced penalty to check smuggling through transit trade.
Sources told Business Recorder here on Sunday that section 25 of the Customs Act, 1969 has been amended in this regard. The amendment seeks to substitute in section 25, in sub-section (15) in clause (b), the words 'including any export duty which may be chargeable" for "including any regulatory duty which may be chargeable under sub-section (3) of section 18 of customs Act, 1969" due to restriction upon levy of export duty vide sub-section (2) of Section 18 of the Customs Act, 1969. This amendment is aimed at formulating of valuation formula for the goods to be exported.
Another amendment in section 25A of the Customs Act, 1969 seeks to add new proviso to section 25A so that clarity be given for the application of the value under section 25A till the time the value is revised or superseded or rescinded by the competent authority This amendment is proposed due to stipulation of applicability of a value for a period of 90 days in terms of rule 107 of the Customs Rules, 2001.
Through an amendment in section 25D of the Customs' Act. 1969, it seeks to substitute section 25D in order to clarify that review application before Director General Valuation shell lie in cases of the values determined by Director Valuation or Collector of Customs under section. A review application can be filed within 30 days from the date of determination of customs value after the amendment.
Under the proposed section 27A of the Customs Act, this section envisages, denaturing mutilation and scraping of goods having multiple uses for conversion into scrape so as to allow release as re-rollable, re-meltable etc scraps under prescribed rules As the said facility was envisaged for serviceable component of scrap consignments, therefore, existing provisions of section 27A require modification to restrict the permission for mutilation or scrapping certain goods, notified by the Board imported with scrap consignments serviceable condition.
The amendment in section 32 of the Customs Act seeks to insert new clause (e) in section 32(5) to curb the tendency of deliberate wrong self-assessment and less payment revenue through computerised clearance "system. The amendment is aimed to clarify that for the purposes of clearance of goods through the Customs computerised Clearance system on self-assessment or electronics assessment basis if a duty is under paid then the date of detection on post clearance audit shall be taken as the relevant date from which the duty shall be liable to be paid.
Under the section 32A of the Customs Act, 1969, it seeks to amend section 32A, sub-section (1), in clause (c),'by inserting words "payment of revenue through 'self-assessment," to curb the tendency of deliberate wrong elf-assessments on part of the importers. The amendment would discourage the modes of fiscal fraud as it would encompass the mode of payment of revenue through self-assessment, physical description/specification.
The section 79 of the Customs Act, 1969 seeks to substitute first proviso to section 79, sub-section (1) in order to discourage the misuse of the facility of filing of goods declaration after examining the goods by the importer. The amendment is proposed keeping in view the misuse of the facility filing of goods declaration after examination of goods by the importer. Normally the importer is well aware of the quantity, quality and physical description of the new/prime quality goods. Presently, under section 79 sub-section (1), the 'importer can make a request for examination of goods first and thereafter can file goods declaration even in case of import of new / prime quality goods, which seems to be irrational. Further, 'in section 79, sub-section (1), in the first proviso, the word "Additional" may be substituted for "Assistant" so that the permission for filling of goods declaration after examination of the goods should be granted at a senior level This amendment is aimed at creating a sort of deterrence as the senior officers are more experienced.
In section 81, in sub-section (2), the words "three" may, be substituted for the words "six" ,in order 'to avoid delay in finalisation of provisional assessment. It has been observed that the field formations take a long time to finalise 'the provisional assessment which otherwise can be finalised within a short period of time. Hence the proposed amendment would expedite the finalisation of provisional assessment.
In section 156,' in sub-section(1), against S.No. 1 for the word "twenty five" the word "fifty" is' proposed to, be substituted as the increase in general penalty will create deterrence for contravening 'any provisions of the Customs Act, 1969.
Under section 156(64),of the Customs Act, 1969, the words, 'not exceeding Rs 25,000 for violation of transit related legal provisions as provided in section 156, in sub-section (1), against S No 64, are proposed to be substituted with a penalty "not less than twice the value of the 'goods". The amendment is meant for enhancing the 'penalty for violation of section 128, and 129 of Customs Act, 1969 in order to create a deterrence 'vis-à-vis the 'smuggling through transit trade.