Under-Invoiced Items Back On Customs Table .

Department of Customs has revisited customs duty of under invoiced items from India with effect from today, according to director general Tanka Mani Sharma.

However, it is set to revise customs duty of third-country goods from mid-May, he said, adding that the department has revisited the customs of some 3,500 goods to mobilise more revenue without putting pressure to increase the price of these products in the market.

“The rate will be effective to those who are trading with under-invoicing at present,” he said, adding that those who have been doing their business with normal billing will not be affected.

Price hike, inflation and other market situation have been analysed during the decision, according to Sharma. “If traders hike the price citing the hike in customs duty,” he said, adding that the department’s main thrust to revise the duty is punish under-invoicers.

The department has revised the duty of under invoiced goods including betel nut and green cardamom increase by $50 per metric tonne. Similarly, the under invoiced light drinking items duty has been increased by 10 per cent.

The duty of under invoiced biscuit increased by 10 per cent whereas under invoiced confectionery items’ charge has gone up by 15 per cent, cosmetic items increased by 25 per cent and bakery items and chocolate shred has reached to $1,000 per tonne.

Similarly, the customs duty of under invoiced marble, grenade, steel and pipes has been increased by $1,600 to 1,800, according to the ministry source.

Similarly, the rate of under invoiced bicycle has increased by $1 per inch. The customs on under-invoiced clothing and foot-wear has been increased up to 25 per cent.

The government, generally, carries out re-evaluation of goods in the beginning of the fiscal year but this year, it organised Performance Evaluation Seminar in April only — about eight months late.

Meanwhile, the high level panel, led by director general of Department of Revenue Investigation Shanta Bahadur Shrestha is all set to tighten customs points across the Nepal-India open border. “The panel has completed inspection of several customs and sub-customs offices,” Shrestha said, adding that the panel has directed officials to tighten the security to stop smuggling of goods to mobilise more revenue.

“The panel found generally two kinds of trend of revenue leakages,” he said, adding that the revenue collection has affected both from within the customs offices and through smuggling.

The officials at the customs offices are involved in the under invoicing of goods and both export and import are also made through illegal route, he informed.

It is found that there are enough security lapses from local security forces have resulted in the spread of smuggling, he said, blaming political parties for supporting smuggling.

“The panel has completed scrutiny of customs and sub-customs offices including Birgunj, Rautahat, Siraha, Janakpur, Matiwarwa, Saptari, Sunsari and Biratnagar so far,” he said, adding that the panel will now visit other customs offices including Tatopani, Bhairahawa, and Dhangadi.

Suspecting inefficiency on the part of revenue administration and security forces, the government on April 26 had formed a high-level panel incorporating the representatives from security forces and Home Ministry to control revenue leakage.

The import of goods has dropped but it is not the only reason for the decrease of custom duty, a Finance Ministry source said, adding that the committee was formed to curb the revenue leakages.

Source : thehimalayantimes.com