WeBOC glitch hurts exports

Published August 22, 2013
Pakistan Customs logo. - Taken from FCPPL website.
Pakistan Customs logo. - Taken from FCPPL website.

KARACHI: The exports of five zero-rated industries have been paralysed by a glitch in the auto clearance system Web Based Auto Clearance (WeBOC) of the Customs.

The system had not been accepting or loading export Goods Declarations (GDs) for over two months and as a result the entire supply chain of zero-rated export trade has been paralysed, exporters said on Wednesday Despite repeated efforts by exporters’ representative bodies and reminders to high-ups of customs and officials of Pakistan Revenue Automation Ltd (PRAL), which developed the WeBOC software, no response was received till the filing of this report.

The non-acceptance of GDs by WeBOC system at export stage is causing multiple problems for exporters who also could not file their sales tax returns for the last two months, they added.

Exporters lamented that the last date for filing of sales tax returns for the month of June 2013 was extended to July 29, 2013 but to date the error has not been removed by the PRAL.

As a result of this, they said a large number of exporters have been declared as non-filers of sales tax returns and their names have been included amongst “Non Active” in the Federal Board of Revenue’s web portal without any fault on their part.

After appearing as “Non Active” on the FBR’s web portal the credibility of a large number of exporters has been damaged and above all are now facing multiple problems including losing their entitlement to purchase raw material at reduced sales tax rate of 2 per cent instead of normal rate of 17pc.

The situation has become so critical for exporters that their entire supply chain has been badly disturbed and could not keep their production and export activity moving.

M. Jawed Bilwani chairman Pakistan Hosiery Manufacturers Association (PHMA) said that exporters were suffering on many accounts because even their sales tax refund claims are being rejected by the FBR’s auto system of RMS due to “non active” status in the Web Portal.

Similarly, he said the customs authorities have stopped their import consignments of raw materials for application of higher rate of sales tax which otherwise have to be cleared at reduced rates. All the zero-rated exporters are also being asked by utility companies to pay 5 per cent extra sales tax due to non active status.

Mehtabuddin Chawala chairman Pakistan Towel Manufacturers Association (TMA) said that the FBR should have first test run the auto uploading of export and import data in the WeBOC system and only then asked the taxpayers to go through it.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kurram ceasefire
Updated 26 Nov, 2024

Kurram ceasefire

DESPITE efforts by the KP government to bring about a ceasefire in Kurram tribal district, the bloodletting has...
Hollow victory
26 Nov, 2024

Hollow victory

THE conclusion of COP29 in Baku has left developing nations — struggling with the mounting costs of climate...
Infrastructure schemes
26 Nov, 2024

Infrastructure schemes

THE government’s decision to finance priority PSDP schemes on a three-year rolling basis is a significant step...
Anti-women state
Updated 25 Nov, 2024

Anti-women state

GLOBALLY, women are tormented by the worst tools of exploitation: rape, sexual abuse, GBV, IPV, and more are among...
IT sector concerns
25 Nov, 2024

IT sector concerns

PRIME Minister Shehbaz Sharif’s ambitious plan to increase Pakistan’s IT exports from $3.2bn to $25bn in the ...
Israel’s war crimes
25 Nov, 2024

Israel’s war crimes

WHILE some powerful states are shielding Israel from censure, the court of global opinion is quite clear: there is...