KARACHI, April 7: Customs duty collections during the first nine months of the current fiscal year were higher by 5.36 per cent at Rs65.503 billion over the corresponding period of last year when the total collection stood at Rs61.987 billion.

According to official figures, duty collected by the appraisement collectorate during the July-March period stood at Rs18.760 billion, and collection by Port Qasim and CARe collectorates stood at Rs20.832 and Rs25.911 billion, respectively.

However, when customs duty collection is compared with higher quantum of imports, which were 14 per cent more during this period, the revenue collection on account of duty becomes negative by 8.64 per cent.

The lower collection of customs duty in 2006-07 at Rs84.119 billion as against Rs86.107 billion in 2005-06 was an indication of slowdown in economic activity. However, another factor being reckoned by official sources could be the introduction of auto-clearance under Model Customs Collectorate (MCC).The customs agents have been agitating over the issue of MCC as they believe that the auto-clearance has opened floodgates of corruption where large scale mis-declaration through tampering of computers was the major cause of revenue leakage.

But the Federal Board of Revenue (FBR) maintained that the auto-clearance was the need of the hour because this ensured clearance of imported cargo in the shortest possible time and elimination of congestion at ports.

When CARe was launched in 2005-06 the intelligence agencies and customs collectorate of intelligence were asked not to chase consignments cleared under the MCC. As a result of this, customs sources alleged that banned items and goods with higher tariff were cleared under mis-declaration to evade duties to the tune of billions of rupees.

Customs agents, too, realise importance of auto clearance in the present era of competitiveness but suggest that mis-declaration and clearance of banned items through tampering of computers should be checked.

There have been many instances when customs officials with the connivance of importers or their agents managed to clear large consignments through mis-declaration.

Citing examples customs agents said that dumper trucks were cleared when there was a ban on their imports but surprisingly, the ban was lifted under a dubious deal with customs officials.

The customs agents said that trade policy for 2007-08 was announced on October 8, 2007, which imposed a ban on import of reefer vehicles. However, during the period between July 1 and October 8, 2007 the officials followed the previous trade policy and allowed import of reefer vehicles.

Consequently, over 130 reefer trucks were cleared by customs and only nine appraisement officers were suspended for not following the new trade policy.