The new step is being taken as the existing practice, which allows traders to walk away even without clearly declaring the product´s name, was giving room for anomalies like under invoicing and tax evasion.[break]
“Now onwards, citation of just ´mobile´ won´t be enough if an importer is importing mobile handsets. The importer should mention ´Nokia´, if it is the brand name, and also ´N90´, if it is the model name,” said an official at Department of Customs (DoC), citing an example of how the new system will work.
The new practice will come into effect once DoC enforces what it calls ´single entry system´ in customs operations.
“We are at the final stage. We plan to put it into place within a month,” said Navaraj Bhandari, director general of DoC.
The department has already asked Nepal Rastra Bank (NRB) to make importers disclose clear details of goods while importing through letter of credit. It has already held discussions about the new practice with the concerned stakeholders, particularly customs agent.
Although a small segment of the agents has complained that the system will unnecessarily expand the list of items to be disclosed in declaration form, the Federation of Customs Agents has endorsed the department´s proposal.
“It will add responsibility to the customs agents and also make the customs declaration a bit long. But the benefits it will bring is immense,” said Bhandari.
The department mainly hopes the new system will help the government and tax administration do away with existing practice of under invoicing, which has not only been affecting customs revenue but also value added tax (VAT) collections.
If the importers complied, the department says it will recognize their self-declaration at customs and also free them from the hurdles of post clearance audit (PCA) of goods in the market.
For that, Bhandari said, the department is planning to extend the ´green channel´ entry facility, under which customs will clear goods without any hassles just on the basis of self-declaration, to the importers.
The government has implemented green channels at Tribhuvan International Airport (TIA), Birgunj Customs and customs at the dry port in Birgunj.
“The new system will help us make a list of good importers, customs agent and tax compliers. This will facilitate us beef up vigilance against others,” said Bhandari.
Currently, the government has allowed some 15 percent of total import items to enter the country on the basis of self-declaration by importers.
However, only the items identified as ´revenue insensitive´ has been listed for this facility.
The department has announced that it will substantially expand the list and also introduce green channels at other major customs as well.
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