Traders reject audit of duty drawback claims

Say post-clearance audit system not yet fully digitalised

LAHORE:

Businessmen form the textile sector have rejected the audit of duty drawback claims of exporters and cited that it was contradictory to the vision of Pakistan Customs.

They detailed that while the department claimed of moving towards automated clearance procedures as part of the reform agenda, it was forcing exporters to perform lengthy paperwork by sending notices to them. In a statement on Wednesday, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) North Zone Chairman Sheikh Luqman Amin argued that all information of exporters was available in the system.

He appreciated the efforts of Pakistan Customs for developing an automated e-commerce clearance facility. “The system proved to be effective for the small and medium enterprises (SMEs) as it helped them promote their business, particularly amid post-Covid economic slowdown,” he said. “Unfortunately, the post-clearance audit system is still manual despite having complete information of exporters and this is creating problems for the industry.”

He further stated that the Pakistan Automated Customs Clearance System (PACCS) was launched with the slogan of ‘paperless system’ as a pilot programme. Lamenting that post clearance audit system had not been digitalised, Luqman said that exporters had received several notices in the past couple of weeks from the Directorate of Customs-Post Clearance Audit, asking them to submit papers of their exports in details.

“No major recovery can be made by sending such notices and they are just a waste of time and resources because the rebate amount is less than 1%,” he added. “Forcing the exporters to submit details manually for audit of such a meagre amount is a wrong practice.”

Published in The Express Tribune, February 10^th, 2022.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.