Discrepancies in PaCCS data: exporters under DTRE facing serious problems

Exporters operating under the Duties and Tax Remission for Export (DTRE) scheme are facing serious problems in data calculations on consumption of duties and taxes-free imported raw material/inputs and finished goods exported under the Pakistan Customs Computerised System (PaCCS) due to discrepancy in electronic data.
Exporters told Business Recorder here on Wednesday that all exports under the DTRE scheme are fed and routed through the PaCCS. Business units are using this system for last many years, which helps the exporters to know about the balance quantities to be exported under a certain DTRE approval. By using the information of balance quantity, exporters are filing their export GDs under relevant DTRE approval.
When the exporters try to reconcile the quantities exported and balance quantities under DTRE approvals, the system of PaCCS is not reflecting correct information of quantities in balance to be exported. At a number of times, quantity exported is not deducted from the opening balance. Same balance is carried forward as of before the exports. The mistake has been witnessed in many cases during the last 1-2 years. This misguides the exporters and they have processed more quantities than their approved quantities of particular DTRE approvals and purchases under the 2nd DTRE approval are going to be used for exports of First DTRE Approval.
In some cases where balances are outstanding in PaCCS system, during the audit of DTRE user, the regulatory Collectorate issue the audit observation that the DTRE user didn't exports and create demand for recovery. The customs department has to take measures to correct the system, and to get the correct result during balancing of DTRE quantity. The excessive quantities reflected (exported) through PaCCS due to this error of system may be allowed correction and adjusted against other relevant DTRE approvals.
Exporters further argued that a major discrepancy has been detected in the DTRE data maintained by the PaCCS. Under the system, the reduction in the quantity of consumed raw materials/inputs in the finished products should be reflected in the system. The system should also show actual quantity of exported finished products manufactured from inputs imported under the DTRE scheme. A unique discrepancy has been detected in the system where the quantity of the consumed raw materials and inputs has not been reduced in the 'balance column' of the summary sheet of the PaCCS. However, the system reflects the actual exports of the finished products, but subsequent reduction has not been reflected in the summary sheet. This resulted in discrepancy in data of raw materials and actual exports of finished products. The emerging situation is quite astonishing when the summary sheet generated by the PaCCS is studied. In certain cases, the first column of 'balance quantity' continued to show same quantity in several transactions as the same quantity is mentioned against the relevant column. On the same summary sheet, the last column of 'quantity exported' shows different quantities of exported goods in the same transactions. As compared to this, the first column 'balance quantity' of PaCCS summary statement has not minus (deducted) the amount, reflecting some serious problem in the system.
Referring to the summary sheets of different cases under the PaCCS, the summary sheet contains different columns including quantity exported, imported raw materials quantity allowed, balance quantity, specifications of goods, HS Code, tariff description and other information relating to the DTRE scheme. Practically, the column of 'balance quantity' does not minus the consumed raw materials and inputs, but actual exports of goods are reflected in the system. Resultantly, the column of 'balance quantity' continues to show huge quantity of unconsumed raw materials despite the fact that the finished products have been exported.
The system must accept the quantity of imported inputs used in the export goods, but the 'balance quantity' does not minus the consumed goods and exports were shown in the data of a specific period. The PaCCS system does not accept the entry and inputs used in the finished products were not deducted from the system. The problem is so serious that the exporters have been repeatedly approaching the concerned customs authorities, but error has yet not been rectified in the PaCCS. The issue would not be resolved until the column of 'balance quantity' correspondently minus the actually consumed quantity of the raw materials as per exported goods under the DTRE scheme.
They said that the tax department has framed audit objections for recovery of the taxes from certain manufacturers-cum-exporters on the argument that the raw materials has not been timely consumed under the DTRE scheme. The factual status is that the system fails to correspondently minus the quantity of the imported raw materials which was actually consumed in the exported goods. There is no justification of recovery in cases where the PaCCS system has failed to minus the quantity of used goods vis-à-vis exported goods.
According to sources, the exporters have repeatedly approached the Collectorates as well as the FBR for redressal of the issues, but the concerned authorities have yet not taken notice of this serious discrepancy in the PaCCS system.
Due to error in the PaCCS system, the balance quantity has not been accurately reflected in the system, causing inconvenience to the exporters. Exporters have requested FBR Chairman Salman Siddique and FBR Member Customs Mumtaz Haider Rizvi to immediately intervene and rectify the error in the PaCCS system, causing inconvenience to a number of users of the DTRE scheme.