Home »Taxation » Pakistan » Exemption certificates issued by ministry: FBR bereft of mechanism to ascertain veracity

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  • Jan 4th, 2018
  • Comments Off on Exemption certificates issued by ministry: FBR bereft of mechanism to ascertain veracity
Federal Board of Revenue (FBR) is said to be bereft of mechanism to verify the veracity of exemption certificates issued by ministry of foreign affairs for the clearance of diplomatic cargoes; it was learnt here. Talking to Business Recorder, high customs official posted in Appraisement East, on a condition of anonymity confirmed that there was no mechanism in FBR to verify the veracity of exemption certificates issued by ministry of foreign affairs for the clearance of diplomatic cargos, providing lucrative opportunity to unscrupulous persons to forge exemption certificates and bring commercial goods or contraband items in the country.

Recently, Model Customs Collectorate (MCC), Preventive, Karachi busted a gang involved in smuggling of goods by misusing the exemption facility available to diplomats. The said gang made an attempt to smuggle myriad quantity of cell phones, auto parts and others under the guise of diplomatic consignment.

He said that Model Customs Collectorate (MCC), East had written a letter to FBR, proposing to discuss the issue related to the verification of exemption certificates with ministry of foreign affairs. He said the ministry of foreign affairs was presently used to issue exemption certificate (hardcopy) for the clearance of diplomatic cargos, which not only extended the clearance time but could not be verified by the FBR.

Therefore, the MCC Appraisement East has suggested the board to discuss the said issue with the ministry in order to empower them for submitting exemption certificates online through WeBOC system to ensure speedy clearance of diplomatic cargoes and avoid the possibilities of misusing this exemption facility.

Meanwhile, sources said the clearance of two consignments carrying luxurious vehicles of different embassies was stopped over non-availability of mandatory exemption certificates of ministry of foreign affairs. Replying to a question, sources said that a diplomat was allowed to import a 20ft container under exemption facility for personal purpose. However, unscrupulous persons having strong connections with some diplomats bought this facility and misused the same for commercial imports.

Sources said the possibility of the same in MCC Preventive case could not be ruled out where exemption facility of one of the embassies was sold for a commercial purpose. Furthermore, they said that if the ministry of foreign affairs instead of issuing exemption certificates manually submitted the same online from its own ID under WeBOC system, dwell time of cargos clearance would not only be reduced but all illicit activities being done under the guise of diplomatic consignments would also be eliminated.

Copyright Business Recorder, 2018


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