Govt pays no heed to FBR’s request to take measures against border smuggling

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By MONEM FAROOQI

The government has kept its silence on the repeated Federal Board of Revenue (FBR) requests for approaching the neighbouring counties like India, Afghanistan, Iran and China for exchange of trade data with Pakistan to control the under-invoice and smuggling menace.

FBR communication with finance ministry underlines immediate need of sharing of information pertaining to import/export with these countries to control this huge quantum of smuggling.

The sources told Pakistan Today that FBR had also asked ministry for arranging regular monthly meetings of customs officers posted at the borders for interchange of information on trade, collection of customs duty, permission for re-export etc.

Sources said that the meetings would greatly help in removing the apprehensions that large quantities of goods exported by or transited through Pakistan re-enter Pakistan through un-notified routes without collection of leviable duties and taxes.

Pakistan and Chinese customs had agreed to share data on exports and exchange of import documents to help promote cross-border trade and to pre-empt smuggling in Northern Areas. However, the regularity in meeting was still awaited by FBR. They said that the sharing of data with Chinese customs would not only help to check smuggling but would also help in building an information base and would ensure reliable import documentation, trade facilitation and promotion of exports.

Showing serious concern over the increase in the smuggling of vehicles from Iran and Afghanistan, the FBR has proposed strict enforcement measures in the tribal areas to nab the organised gangs using latest technology and mechanical devises to change chassis/engine numbers of stolen vehicles.

The communication marked that the smuggling of vehicles, including stolen cars from Iran and Afghanistan is on the rise. The FBR has kept on receiving reports that stamping/number inscribing machines had been installed in the border areas of Afghanistan particularly Wash Mandi  across Chaman and in the tribal areas of Pakistan where the chassis and engine numbers are stamped on the smuggled vehicles. This procedure helped in registration with the provincial authorities on the basis of forged documents, they added.

They said in most of the cases the documents of vehicles auctioned by various government departments are used to legalise stolen cars from Iran and Afghanistan. However, the communication did not make it clear that how such sophisticated equipment reached tribal areas for changing engine/chassis numbers of stolen vehicles in the federally-administered tribal areas (Fata) and the provincially-administered tribal areas (Pata),

Talking to Pakistan Today officials said that the registration work should be handed over to NADRA to forestall the efforts of registering smuggled cars through provincial excise departments.

There are cases where vehicles are imported in completely knocked-down (CKD) or semi-knocked down (SKD) condition as transit cargo to Afghanistan where these are re-assembled and smuggled back to Pakistan, said the officials, adding the owners of showrooms of smuggled cars in tribal areas give assurance to the buyer that the cars will be delivered in the settled areas without interference of any anti-smuggling agency.

According to FBR, the demand for cars, especially over2300 cc, has surpassed the local manufacturing capacity, which has also grown at very high average rate of 40 percent per annum during the last three years. There was a rapid increase in the demand for second-hand vehicles by a fast emerging middle class. The high tariff and ban on the import of old and used cars has made the smuggling more profitable business in Pakistan, the FBR added.