Telecom News Bulletin

Pakistan Computers Association (PCA) has expressed serious concern over the growing number of cases of harassment by the Directorate General of Intelligence and Investigation involving seizure of computer consignments during transportation with-in the boundaries of Pakistan even though these components are exempt from customs duty.

The staff of DG Intelligence and Investigation and mobile squads has recently seized a large number of consignments of computer industry which were duly cleared by the customs authorities at the ports. During the transportation of such consignments by the transport companies, the staff of the directorate has intercepted a number of consignments, which were accompanied by the necessary import documents. The consignments have been seized even after submission of bill of entries and other import papers. The issue has been taken up with the present Director General of Intelligence and Investigation at Islamabad. He has assured that the staff would be barred from taking such actions causing harassment among the business community. It is unfortunate to note that the directorate’s staff is still involved in seizures of such consignments. Once the consignments have been cleared by the port and customs department, the checking and confiscation of duly cleared computer goods during their transportation from one city to another by transport companies has no justification.

The PCA has categorically said that it is a clear violation of the World Bank funded Tax Administration Reform Project (TARP), which talks about minimum interaction between the customs and business community. The harassment by the DG staff with no legal backing has shown an attempt to destroy the whole process of reforms of the Federal Board of Revenue (FBR). An important component of reforms under the TARP is to reform the DG Intelligence and Investigation, but the increased number of harassment by the staff of directorate seemed to be a deliberate attempt to hamper the whole reform process in Pakistan. The results of the reforms under the TARP are evident from the fact that FBR Chairman and FBR Member Customs are mum over the issue, which recently created panic among the entire computer industry.

The FBR has committed with the IMF at Dubai to raise additional revenue through administrative and enforcement measures to meet target of Rs.1380 billion during 2009-2010. If the FBR wanted to raise revenue through illegal seizure of documented goods, it is a clear violation of the commitments made with the IMF under the Letter of Intent (LOI) and WB’s TARP. Such kind of checking of carriers at roads is a major violation of the FBR commitment with the World Bank that the harassment of the customs staff would be ended through special pack packages and performance based incentive packages to the customs officials. DG intelligence should show their performance by checking massive irregularities during clearance of consignments through Pakistan Customs Computerized System (PACCs) and “One Customs” Clearance system instead of harassing the small vendors of computer industry on roads.

The association has decided to approach the World Bank Inspection Panel through Customs and Excise Group for redressal of their complaints. The World Bank Inspection Panel is coming to Pakistan from February 24, 2010 to Pakistan to investigation the creation of Inland Revenue Services. The association would try their level best to raise their voice before the World Bank Inspection Panel through any channel available.

The PCA has appealed to the FBR Chairman, Member Customs, Director General of Intelligence and Investigation and World Bank Inspection Panel to immediately intervene and stop its staff for increasing revenue collection through such illegal enforcement measures across the country.