20000127

FPCCI opposed to implementation of CGO-57/99

RECORDER REPORT

KARACHI: The expected issuance of guidelines explaining implementation of CGO-57/99, which relates to GATT Code of Valuation has been opposed by the FPCCI.

Sheikh Shakeel Ahmed Dhingra, Member Special Committee on GATT Code of the Federation of Pakistan Chambers of Commerce and Industry in an urgent letter faxed to Mir Fuad, Member, Customs, Central Board of Revenue has reiterated that since CGO-57/99 is not in conformity with the rules of GATT Code of Valuation, its implementation carries no meaning.

Dhingra said that at a meeting held in Islamabad recently, the CBR chairman had taken a serious note of the proposed guidelines for the implementation of CGO-57/99 and had said that valuation database comes after exhausting the first six methods, (at seventh place) and when he was informed that it was applied at first stage he had taken a serious note and said GATT Code of Valuation should be applied in letter and spirit.

"As the chairman was unaware of the issuance of CGO-57/99 and had assured to study it very soon, guidelines are being issued by the Controller and Collector Customs. They must be informed about the views of the CBR chairman so that they may act accordingly and the guidelines may be only issued after the Chairman had cleared the issuance of CGO-57/99," Dhingra said.

He further pointed out in the letter that it was brought to the Notice of the chairman that items attracting taxes up to 10 percent are allowed to be cleared as per Article 1 of the Gatt Code of Valuation on which the chairman had responded that such items may be virtually none. It was recommended by FPCCI that the items attracting 10 percent duty plus sector-wise may be included and studied which will be under your active consideration.

It was further elaborated that the present state of affairs are ideal for corrupt practices and the FPCCI wanted honest business to survive which will also be in the interest of CBR.

It was further suggested that all the committees may include members of respective trade associations for consultation under the umbrella of FPCCI.

Dhingra said that unless CGO is finalised no further guidelines may be issued.

The CBR chairman was also of the view that there is no need of valuation department and it must be scrapped and had asked you "to prepare a study which was opposed by FPCCI."

It was also decided that database to be reviewed up to February 15, 2000 in consultation with respective trade associations.

Dhingra invited the Member Customs to Karachi to discuss and thrash out problems in the light of the discussions with the CBR chairman.