ISLAMABAD: Pakistan Customs is actively obtaining export documents from some of the major trading partners of the country, including China, UAE, Singapore, South Korea and Hong Kong, to avert under-invoicing.

According to details issued by the Federal Board of Revenue (FBR) here on Thursday, Pakistan Customs has intensified its operations against the importers responsible for under-invoicing, over-invoicing and mis-declaration.

Pakistan Customs has unearthed a big case of under-invoicing whereby certain importers imported a brand of drinking powder at an excessively low price of US$0.4 per kg.

Pakistan Customs obtained actual export documents of such consignments from the UAE Customs which reflected the actual value at the rate of US$2.39/kg.

Evaded amounts of duty/taxes are to the tune of Rs330 million.

During preliminary investigations, it transpired that the importers established some shell companies in Dubai which were used for the transfer of the amounts of the under-invoiced goods while the remaining amounts were transferred through Hawala/Hundi. Pakistan Customs has initiated serious action against such importers.

Pakistan Customs has put in place proactive/preventive mechanism to effectively control under-invoicing/over-invoicing and mis-declaration (at the import stage), keeping in view the fact that these phenomena not only cause revenue hemorrhage and loss to domestic industries, but the same are an instrumental source of trade-based money-laundering and terror financing. Such malpractices are now treated as fiscal fraud under the Customs Act of 1969.

Copyright Business Recorder, 2020