HOME > Money

FBR to take action against exporters involved in mis-declaration  

June 14, 2019

Photo: AFP

FBR Chairperson Shabbar Zaidi has issued directions to take action against exporters involved in damaging the economy by under or over-invoicing.

It has been decided to identify the extent of the mis-declarations so suspected items or sectors can be singled out, said FBR.

FBR will categorise exporters on the basis of risk profiling by segregating compliant exporters from those engaged in mis-invoicing, it added.

Accordingly, the Customs operations wing has tasked the Customs valuation director-general to submit a report over the matter.

It has been further directed to develop a risk-based system to intercept this trend without compromising export facilitation. Punitive action shall be taken against unscrupulous exporters under the proposed Section 32C of the Customs Act, 1969 and its allied laws.

This initiative comes in the backdrop of reports indicating mis-invoicing in exports, which includes under-invoicing resulting in a loss of remittances of foreign exchange and over-invoicing used to transfer excessive funds abroad.

Mis-invoicing can also be used as a mechanism for trade-based money laundering. One of the suspected methods used in under-invoicing in exports is through the medium of port cargo.

Export cargoes are mis-declared by under-invoicing the values of export commodities and shipped via a port where new declarations with actual values are re-shipped for a final destination. As a consequence, a lesser amount of foreign exchange is remitted to Pakistan and a major portion of export proceeds are retained in the other country.​

Follow SAMAA English on FacebookTwitter, and Instagram

 
TOPICS:
 
RELATED STORIES
 

Tell us what you think:

Your email address will not be published.

 
 
 
 
 
 
 
MOST READ