ISLAMABAD: The government is set to implement a faceless mechanism for the centralized appraisement and examination of consignments, allowing Goods Declarations (GD) filed in Karachi to be assessed by appraisers stationed in Lahore. This move aims to address issues such as under-invoicing and misdeclaration, NewzShewz has learnt reliably,
The Government is likely to start faceless mechanism for centralized appraisement and examination of consignments as Goods Declaration (GD) filed inKarachi might be assessed by the appraiser stationed at Lahore to deal with under invoicing and misdeclaration .
At a recent meeting, the Revenue Division/FBR informed the forum that the FBR was the premier tax collection agency of Pakistan which is also responsible for ensuring compliances in cross border movement of goods and passengers including performance of counter-smuggling function. In the context of counter-smuggling an actionable strategy is being proposed by the Revenue Division to firmly secure the economic frontiers and society of Pakistan with Customs leading from the front. A transformation plan for FBR was presented to Prime Minister during the meeting on September 19, 2024.
Following the transformation plan, the key interventions have been designed to enable Customs in effectively combating smuggling. The interventions are as follows: (i) establishment of digital enforcement stations at Indus crossings across the country and on river Hub, under a dedicated Indus Customs Collectorate; (ii) strengthening of strategically located Customs Check Points in Balochistan; (iii) establishment of Customs Tracking System with E-Way Bill mechanism including vehicle tracking system; (iv) re-organization of the Directorate General of Intelligence to improve counter-smuggling operations under single command; (v) establishment of command fund to incentivize seizure of smuggled goods; and (vi)) establishment of a faceless mechanism for centralized appraisement and examination.
The Revenue Division/FBR further informed the forum that with regard to funding of these initiatives, some of the expenditure shall be met out of existing development schemes of Revenue Division vis-à-vis PSDP No 980 ITTMS (Integrated Transit Trade Management System) and PSDP No 981 (Pakistan Raises Revenue). These projects shall be used (through revision) to fund the civil infrastructure of establishment of Digital Enforcement Stations including their equipment (Rs.10,615 million). Similarly, civil infrastructure of ten strategically located customs check points in Balochistan (Rs.3,743 million) shall also be funded through revision of these projects. For other interventions/SNES of above referred two interventions, the funds shall be provided through the regular budget (partly within current financial year 2024-25 as Technical Supplementary Grant while balance through regular budget in next financial year 2025-26.
FBR submitted following proposals for consideration ;(i) establishment of Digital Enforcement Stations under Indus Customs Collectorate ;(ii) strengthening of ten strategically located Customs Check Points in Balochistan ;(iii) establishment of Customs Tracking System with introduction of Electronic Way Bill mechanism including vehicle tracking system ;(iv) permission for establishment of positions needed for re-organized Directorate of I&I (Customs).
Establishment and Operationalization of Command Fund ;(v) creation of posts of 148 Retd JCOs or equivalents, 1,560 Sepoys, 81 MIS Officers, 5 data mining experts, 10 data analysts, 5 economic analysts, 5 information and system security experts, 10 Artificial Intelligence and Machine Learning experts .
FBR also sought allocation of funding worth Rs.2,733 million through Technical Supplementary Grant during the current financial year 2024-25 for: (i) funding for E-way billing Rs.1,000 million ;(ii) funding for Command fund worth Rs.200 million ;(iii) funding for hiring of post Rs.901 million;(iv) funding for incentives of Rs.294 million for Indus collectorate staff;(v) funding for incentives of Rs.187 million for check posts in Balochistan ; and (v) funding for incentives of Rs.151 million for appraisers and examiners in faceless assessment.
During the ensuing discussion, the Secretary Revenue Division/Chairman FBR informed that River Indus has twenty two bridges which needed to be checked to counter smuggling, particularly of diesel oil and other contraband items. He proposed that digital enforcement stations to be created at these points for checking the vehicle for E-way Bills.
According to sources, Commerce Division suggested that instead of focusing more on enforcement measures, focus should be on balancing the tariff to stop smuggling.
The Secretary Revenue Division/Chairman FBR also requested for funding in respect of faceless appraisement and assessment regime. He explained that currently there is a collusion between importer and appraisers; hence under invoicing and misdeclaration is deliberately concealed. He informed the forum that under faceless examination regime, Goods Declaration (GD) filed in Karachi might be assessed by an appraiser stationed at Lahore .
The Finance Division observed that for creation of posts, case should be brought before the Austerity Committee. Moreover, hiring should be done in phases. Finance Division further observed that incentives for Indus collectorate staff and Balochistan should be linked to KPIs and impact evaluation shall be done before June 2025 as in other cases of FBR transformation plan. The ECC expressed that all these proposed incentives should be linked with revenue targets. If these are not achieved, then these incentives could be withdrawn. The Finance Division also mentioned that in case of “Command Fund” the proceeds would be deposited to the Federal Consolidated Fund.
After detailed deliberations, the ECC noted the proposals of FBR and directed that Revenue Division/FBR shall approach the Finance Division for submission of the creation of posts.
The ECC approved hiring with the condition that FBR shall formulate KPIs for the assessment of performance of recruited personnel under the scheme in consultation with Finance Division and would jointly work out the mechanism for allocation and release of budget for the next FY. The ECC also directed that KPI based evaluations would be carried out encompassing calendar year 2025 to become the basis for further release of funds beyond calendar year.
Ends
