Pakistan Customs has created an electronic solution, which has just been deployed by the Directorate General Valuation (Customs), Karachi, to address the persistent issue of mis-invoicing/under-invoicing.
The Directorate of Reforms & Automation team created this system, known as LIVE (Linking International Values), and it has been digitally integrated with the WeBOC system. In order to allow Assessing Officers to cross-check claimed values and reassess in the event of variations, the system provides current price data of various commodities and goods from reputable international publications.
One of the key goals of the current reform initiatives is to overhaul the current system to enhance the evaluation of imported goods.
To stop revenue leaks and close the tax gap, a number of initiatives have been developed and included in the Prime Minister’s Strategic Road Map. A team from Pakistan Customs, including current Member Customs – Operations, recommended the LIVE method in a study report on customs valuation that was published in May 2019.
A strong risk management system, an efficient post-clearance audit department, and a cutting-edge ICT solution were among the other interventions suggested in the study report to bring the entire ecosystem up to par with any developed economy. The fast-track implementation of each of these proposals was started by Pakistan Customs a few months ago.
The New System validates the Assessing Officer’s (AO) use of the published value for the assessment of an item in addition to making it digitally visible to the AOs. Additionally, such an evaluation becomes a part of the data for the past ninety (90) days, strengthening or improving the quality of the data on transactional value.
The integrated international publications in the initial rollout of the LIVE system include the London Metal Bulletin (LMB), Public Ledger, Emerging Textile, Platts, Reuters, ICIS, and Asian Pulp & Paper (Risi Info). The aforementioned items’ import value (for the fiscal year 2021-22) is Rs. 821 billion. By June 30th, 2023, the values of additional significant commodities (such as chemicals, edible oils, coated and uncoated paper, polyester filament yarn and fibre, and other things) shall be integrated into the system in accordance with the Prime Minister’s Strategic Roadmap.
