KATHMANDU, MAR 18, 2012
Amid complaints about revenue leakage through under-valuation of imported goods, the Department of Customs (DoC) has hiked valuation (reference prices) of 203 items, with effect from February 28.
Among the products that have been revalued include garment, textiles, readymade items, dry food, pvc flooring, plywood, dry foods, rice, fruits, sports shoes and sports items, hardware items, bathroom utensil and sophisticated cosmetic items.
The reference prices have been hiked from 5 percent to 25 percent based on the type of the items, according to a DoC source. The department has directed customs offices across the country clear goods as per the revised valuation rates, officials said. “Customs offices have begun clearing imported goods as per the revised reference price,” said Laxman Aryal, deputy director general at DoC.
A meeting on ‘Evaluation Seminar on Customs Management’ held in Pokhara on January 5-7 had taken a decision to this effect, according to DoC officials.
DoC revises valuation of imported goods every year to ensure minimum difference between the reference price and market price and to check undervaluation. If customs offices find goods undervalued significantly, they clear the goods as per the reference rates.
On the one hand, under-valuation of imported goods hurts government revenue, and on the other hand those practicing ethical business suffer. It is also one of the major sources of capital flight as the actual billed amount is paid through informal channels. “We hiked the valuation of some items following complaints of VAT evasion through under-invoicing of imported goods,” said DoC Director General Rana Bahadur Shrestha.
Three months ago, the department had directed customs offices across the country to recommend the items whose reference prices had to be hiked. After finalising the goods to be revaluated, DoC told importers to abide by the new rates for local imports (from India and China without opening letter of credit) within 7-10 days. Third country importers were given three weeks to comply with the new rules, considering the long time required to import goods from third countries.
Source: Kantipur
Amid complaints about revenue leakage through under-valuation of imported goods, the Department of Customs (DoC) has hiked valuation (reference prices) of 203 items, with effect from February 28.
Among the products that have been revalued include garment, textiles, readymade items, dry food, pvc flooring, plywood, dry foods, rice, fruits, sports shoes and sports items, hardware items, bathroom utensil and sophisticated cosmetic items.
The reference prices have been hiked from 5 percent to 25 percent based on the type of the items, according to a DoC source. The department has directed customs offices across the country clear goods as per the revised valuation rates, officials said. “Customs offices have begun clearing imported goods as per the revised reference price,” said Laxman Aryal, deputy director general at DoC.
A meeting on ‘Evaluation Seminar on Customs Management’ held in Pokhara on January 5-7 had taken a decision to this effect, according to DoC officials.
DoC revises valuation of imported goods every year to ensure minimum difference between the reference price and market price and to check undervaluation. If customs offices find goods undervalued significantly, they clear the goods as per the reference rates.
On the one hand, under-valuation of imported goods hurts government revenue, and on the other hand those practicing ethical business suffer. It is also one of the major sources of capital flight as the actual billed amount is paid through informal channels. “We hiked the valuation of some items following complaints of VAT evasion through under-invoicing of imported goods,” said DoC Director General Rana Bahadur Shrestha.
Three months ago, the department had directed customs offices across the country to recommend the items whose reference prices had to be hiked. After finalising the goods to be revaluated, DoC told importers to abide by the new rates for local imports (from India and China without opening letter of credit) within 7-10 days. Third country importers were given three weeks to comply with the new rules, considering the long time required to import goods from third countries.
Source: Kantipur
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