KARACHI, Jan 19: Despite hectic efforts to clear goods swiftly under the new Customs Administrative Reforms (CARe) system, a delay in clearing some consignments is still occurring because of some existing provisions of the Customs Act, 1969. “CARe is basically designed on the basis of transaction value as envisaged in the GATT Code of Valuation, and we are making all efforts to clear the goods as quickly as possible,” Azhar Majeed Khalid, Collector of Model Collectorate of Customs and Appraisement, said in a meeting with Karachi Chamber of Commerce and Industry President Haroon Farooki on Thursday.

However, the collector said that at present more than 60 per cent goods declarations were being processed and cleared by the CARe system within four hours on the same day on the basis of data-base and risk management, whereas the remaining 40 per cent could not be cleared on the same day basis because specification/data declared by the importers did not cross-match with the CARe rules and regulations, thus creating disparity.

Mr Khalid said that most of such cases were cleared within two days. The existing average time period for the clearance of consignments is 11 hours, says a KCCI press release.

The collector said that CARe was a pilot project initiated to minimize interaction between a taxpayer and a tax collector. The system was being improved day by day and would be finalized soon after removing its discrepancies.

“In addition, importers’ profiles are also being prepared and after completion of these exercises, the facility of completion of 100 per cent processing of goods declaration within four hours will be available to all importers by March 2006.”

Mr Khalid disclosed that the “first review” procedure would be abolished and goods would be cleared on the basis of transactional value declared by an importer, and in case if it was found incorrect, his security would be confiscated.

He said that post-importation audit of goods processed and cleared under CARe was being conducted, and the process had generated additional revenues in millions of rupees. He pointed out that the CBR intended to make radical changes in the present outdated revenue collection system, after which importers would be allowed to deposit advance payment of duties and taxes.

Referring to the KCCI president’s proposal to increase the number of duty collection counters, he said it was a problematic area, particularly due to banking system, and added that he had already made plan to open 11 more branches of National Bank of Pakistan in major trade centres of Pakistan, such as Lahore, Sialkot, Peshawar, etc.

Regarding the waiver of terminal charges, the collector said that he had already taken up this issue and results of his efforts would be announced within two days.

As far as re-export of confiscated betel nut is concerned, he said that he had submitted the case to the CBR for a decision.

Abdul Basit, Chairman of KCCI’s customs and valuation sub-committee, said that the letters sent to the collectorate by the chamber for the resolution of hardships being faced by its members were neither acknowledged nor responded.

Sultan Mahmood, Chairman of KCCI’s imports and anti-smuggling sub-committee, demanded that all paper and paperboard items be assessed and released according to the law, as per transactional value within 90 days.