The Federal Board of Revenue (FBR) has decided to conduct analysis of imports under Red Channel during the last six months in Customs appraisement East Lahore.
Sources said that the Chief Collector (Appraisement-South) Karachi in Risk Management Committee (RMS) meeting has expressed concern over high percentage of import clearance under Red Channel in collectorate of Customs Appraisement (East) Lahore as well as excessive marking of exports GDs to Red channel by collectorate of Customs appraisement Peshawar.
Subsequently, Director General Risk Management Customs directed the directorate of RMS to carry out analysis of imports under red channel in the Collectorate of Customs appraisement East Lahore during the last six months besides the volume of additional revenue realized.
The DG also directed the directorate of RMS to write to the Collectorate of Customs Appraisement Peshawar soliciting justification for excessive marking of exports GDs to Red Channel and Findings if any, in terms of increase in number of contravention / seizures as a result of such administrative measures.
FBR has empowered Customs collectorates to change parameters ( add or delete PCT, Person name) under RMS in a constantly evolving situation.Sources said that collectors have powers to mark GDs to red channel for examination of risky items however normally the traders through high ups of customs or government officials put pressure when it marks excessive GDs to red channel.
On the other hand, some unscrupulous importers als influence to delete risky items through the Directorate of Risk Management, sources added.Currently, 70 percent clearances are happening in the green channel in Karachi whereas this ratio is very low in other provinces.
Sources said that Customs high ups are reluctant to post officers in the directorate of post clearance audit as they fear that audit can highlight the wrongdoings under green channel.Recently, the World Bank in its report also mentioned that the violations detected against GDs which were cleared under Red and Yellow channels, were 0.3% in FY21, to 0.4% in FY22, and 0.3% in FY23.
Whereas, the post clearance audit detected 16% violations in FY21 and FY22, and 14% in FY23.Customs officials informed the WB that the department has hired a firm for the consolidation of frameworks for Central Risk Management System (CRMS) and Post Clearance Audit (PCA) through comprehensive BPM/BPR of core business processes.
