FBR completely changes valuation system at Customs stage for tax collection
All field operations have also been specifically directed to ensure implementation.
To ensure accuracy and proper valuation of goods, FBR has completely changed the valuation system on the customs stage. It has been done for the purpose of tax collection.
“I am pleased to inform that FBR has completely changed the valuation system at Custom Stage and Customs General Order (CGO) 19, 2019 has been issued. Now we are in line with international best practices for appraisement. A paradigm change and positive effect for industry and trade will arise”, Chairman FBR Shabbar Zaidi announced on Tuesday.
According to the announcement issued by FBR, Syed Muhammed Shabbar Zaidi, the customs wing has updated the Units of Measurements used in import and export documents. The notification was issued following that. the move will improve ”consistency, transparency and uniformity in data capturing as per international standards.”
All field operations have also been specifically directed to ensure implementation. According to the recommendations of the World Customs Organization, the use of standard units of quantity must be implemented to facilitate the collection of taxes at customs stage. Standardization and harmonization will subsequently affect the tax collection process.
FBR adopts World Customs Organization’s recommendations after 7 years:
Federal Board of Revenue previously notified the standard units of measurement back in the year 2012. World Customs Organisation subsequently updated the recommendations but FBR did not adopt them for seven years.
”The updated units of measurement issued vide CGO 15/2019 dated 13.09.2019 will facilitate legitimate trade while eliminating discretions and data distortions in the application of Units of Measurement.”
The updated Units of Measure by Customs Operations will ensure trade facilitation and smooth cargo clearances accordingly.