He said it is costing the national exchequer in billions. Markets across the country are flooded with smuggled goods and local industries are struggling for survival as smuggled goods are not only easily available everywhere but are also attracting the buyers who prefer foreign merchandise. The LCCI President said smuggling is carried out in a number of shapes like under-invoicing, undervaluation of goods, misclassifications, falsification of documents, mis-declaration of country and short landing transit or re-export of goods.
The huge difference in taxes/duties in the neighbouring countries encourages smuggling; he said, and demanded of the government to review Afghan Transit Trade Agreement as it has become the main source of smuggling into Pakistan. Its annual volume has been estimated at over $6 billion, he said, adding that under the cover of Afghan Transit Trade, the Afghan imports are back smuggled into Pakistan with the help of Afghan traders. With a view to control the cross border smuggling, scanners should be installed at the border checkpoints besides launching a crackdown in Bara markets. He said the consumer items should be divided into a number of categories. Using the data generated by the invoices and warranties of the registered companies, the FBR officials will be able to make sure that only tax and custom duty paid items are sold in the market, he opined.
He said usually smuggling is carried out on the land routes of Chaman and Landi Kotal under the cover of transit trade. The LCCI President said there should a proper mechanism to monitor the honesty of officers. He said strict punishment should be given to the officials involved in direct or indirect assistance of smugglers.