Importer woes: Customs valuation guidelines unfair, says KCCI

Chamber chief says businesses may be forced into illegal practices.

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) President Abdullah Zaki has expressed concern over the Customs’ valuation guidelines on imported goods.

He asked Federal Finance Minister Ishaq Dar to take notice of what he called malpractices of the Customs collectorate and to restrain them from issuing unfair valuation guidelines.

These guidelines were being implemented by a few customs officials in an attempt to harass importers, he said.

Speaking at a meeting of the KCCI’s sub-committee on customs and valuation, which was attended by many importers, Zaki said, if implemented, these valuation guidelines would leave no other option for the importers but to seek other avenues to conduct their business.

They would look at possibilities like the Afghan Transit Trade that would promote non-declaration of imports and even smuggling in the future.

“Imposing these valuation guidelines, specifically for Karachi-based importers, will result in shifting of imports to illegal sources whereas the majority of import businesses located in the city will suffer terribly,” he said.

The situation may also trigger shortage of raw material as well as have a negative impact on the overall economic performance of the country.

He declared that the business community would not accept the guidelines, which directly affect import businesses and are usually imposed without bringing all relevant stakeholders on board.

Zaki pointed out that the importers were not informed about changes in the guidelines and due to fears of escalating demurrage and detention charges, they found no other option but to immediately clear the imported goods according to the value mentioned in the guidelines.

These importers, who are forced to clear goods under the valuation guidelines, are later on used as examples by the Customs to persuade others to follow suit.

Zaki urged the finance minister to immediately intervene and order the Customs to abstain from issuing such guidelines.

Published in The Express Tribune, April 8^th, 2014.

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