Be Careful! Or Pakistani Importers Will Subject To Penalties!

According to Pakistan Customs, Customs information of Pakistan and China will be exchanged with each other from April this year.

It means that only if Customs clearance fees of local Pakistani importers are equivalent to declaration fees declared to Chinese Customs by Chinese exporters can the Customs get cleared. Otherwise, Pakistani importers will subject to penalties!

And the notice had been announced by Customs Today, the media of Pakistani Customs last year.

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So far, all preparation works of Electronic Data Exchange (EDE) have been completed by Pakistan Customs, and the exchange program intends to come into effect in April this year.

Benefiting from the EDE program, Pakistani Customs will know more clearly about real value of products exported from China, and crack down tax evasion and export underinvoicing.

Moreover, Pakistan plans to establish closer trading relationships with more countries, especially those countries signed Free Trade Agreement with Pakistan. Before long, Malaysia will be the next targeted country involved in Pakistan EDE program.

EDE will do most favor to crack down on tax evasion and export underinvoicing of local Pakistani importer.

Before EDE policy was launched, for the sake of evading taxes, a great deal of Pakistani importers declared to Customs with lower fees than the actual price on the invoice. But after EDE carrying out, tax evasions will be greatly reduced, so that fiscal income of Pakistani government will increase. 

Federal Board of Revenue, Government of Pakistan, suggested that import regulatory tax in 2018 should be 5% higher than the previous year so as to increase fiscal income by less overseas discretionary purchases.

Only in this way, can the local industry get protected and the trade deficit get controlled.

Many Chinese importers and exporters receive the notice from their Pakistani customers that Customs clearance fees of Pakistani local importers must be equivalent to declaration fees declared to Chinese Customs by Chinese exporters.

However, on the one side, EDE makes Customs information of both countries completely transparent to each other.

On the other side, false prices declaration of export goods is strictly prohibited by the Chinese law. Therefore, under EDE, there is unprofitable in Customs clearance when importing by Pakistani importers. 

In such case, some Pakistani customers may ask Chinese exporters for lower export prices. Both of Pakistani importers and Chinese exporters should negotiate proper prices according to their real situations.

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