Arts & Culture

FBR Updates its Customs Valuation System Based on International Standards

FBR has completely changed the customs valuation system by issuing the Customs General Order 19 (CGO 19 of 2019) to ensure proper valuation of goods for tax collection.

Chairman FBR Shabbar Zaidi on Tuesday tweeted:

The Customs Wing has updated and issued the units of measurements used in import and export documents, in order to ensure proper valuation of goods. This will further improve consistency, transparency, and uniformity in data recording as per international standards. All field operation collectors have been asked to ensure proper implementation.

In order to comply with the World Customs Organization (WCO), the Federal Board of Revenue (FBR) has notified standard units of quantity/measurement (UoM) of 7,354 items/goods

World Customs Organization recommends the use of standard units of quantity to facilitate the collection, comparison, and analysis of international statistics, based on the harmonized system of commodity description.

The standard units of measurement were previously notified by the Federal Board of Revenue in 2012. World Customs Organisation had issued updated recommendations subsequently, but they were not updated by FBR since then.

The standard units of quantity were previously notified by the Board on 6th August 2012. Due to adoption of HS-2017, PCT codes have been added/deleted and certain new PCT codes have been created. Accordingly, an updated CGO has been prepared to accommodate these changes.

The standard units of quantity are: weight, kilogram (kg) and carat (carat); length, meters (m); area, square meters (m2); volume, cubic meters (m3) and liters (l); electrical power, 1,000 kilowatt-hours (1,000 kWh) and number, pieces/items (u), pairs (2u), dozens (12u), thousands of pieces/items (I,000 u) and packs (u (jeu/pack))

The importers/clearing agents/shipping agents and all others concerned are directed to provide invoices/documents/information in accordance with the new UoMs prescribed by this CGO.

Updated units of measurement have been notified and will become binding for all field formations of Customs as well as importers/exporters.

FBR has informed customs that a necessary provision shall be created in the Customs Computerized System for this purpose.

FBR has said that no document, including Goods Declaration, shall be accepted after September 30, 2019, if the information regarding units of quantity declared/shown is not in accordance with the new Custom General Order.

Source:Pro Pakistani