NBR beefs up steps to prevent duty evasion

Staff Reporter :
The National Board of Revenue (NBR) has taken strong measures to prevent false declaration in export-import trades, fraud in Harmonized System (HS) Codes and duty evasion.

Stopping the fraudulences in international trades, NBR has formulated “Customs Post-Clearance Audit Manual 2023” empathizing the audit system. The modern audit manual has been developed as per World Customs Organization (WCO) guidelines.

Trade facilitation is now an important issue and essential to lower trade costs, reduce trade time, and enhance the efficiency of supply chains and these factors, in turn, enable a country to increase trade, be better integrated into global value chains, enhance national competitiveness and productivity, and generate decent jobs.

NBR officials hoped that both the importers and the exporters would benefit from the new system.

Earlier there was no system-based audit.

It has been introduced in the new manual, which will allow the Authorized Economic Operator (AEO) companies to be audited.

Besides, all types of firms including compliance, bonded companies can be audited.

The new manual specifies the number of days to complete the audit, NBR officials said.

Besides, the criteria for selecting risky companies were not the same.

Now the standard has been fixed and the Risk Management wing of the NBR has given the responsibility to determine the firms, they added.

They further said the audit will be carried out by the Customs Valuation Commissionerate and as per the recommendation of it, the Customs Assessment Commissionerate will issue instructions for settlement at the Custom House or Station.

According to the manual, the work pressure and area of services of the custom houses and stations is growing significantly as the number of import-export establishments has been increased in the country.

It is now important to follow certain criteria in selecting risky firms for audit, which will help identify vulnerable sectors and firms by ensuring maximum use of the limited resources of the Customs Administration, the manual said.

The manual also suggested auditing the business activities of every company at a regular interval or once in a year as there is no alternative and effective step to prevent revenue evasion.

Similarly, it will help identify the sectors, which are prone to revenue evasion as well as yield maximum success with limited time and manpower, it said.