Customs fraud paralysing genuine biz

KATHMANDU,DEC 9: 

Genuine business firms and outlets cannot make their space in the current competitive market due to customs fraud, according to the Finance Ministry.

Massive trend of importing under-invoiced goods has forcibly blocked the chances of operating genuine outlets, the source claimed, adding that most of the outlets in Kathmandu valley have been earning high profit by practicing under-invoiced goods.

Proper evaluation system is yet to be implemented in different customs points in the country, he said. He further said that the customs offices lack proper technology and mechanism to value branded goods. 

“Customs offices are checking the particular goods only,” he informed. For example, they check watch but not its brand and this trend have promoted business firms to evade the tax. 

In a bid to discourage under-invoicing and make customs valuation realistic, Department of Customs is preparing to declare the Maximum Retail Price (MRP) of some luxurious and high-value goods but the working procedure is yet to be finalised, he said. 

The declaration of Maximum Retail Price will help reduce current trend of importing under-invoiced goods, he added.

Nexus among wholesalers, firms and outlets and bogus importers have forcibly blocked the chances of clean business, one of the customs office revealed. “There are some 15 to 20 bogus importers who are openly practising cartel to import goods from Tatopani Customs Office alone,” he said, adding that the situations of other customs offices are not different. 

In the latest revelation of fake transaction, the Department of Revenue Investigation had found that nexus among Value Added Tax (VAT)-registered importers and Permanent Account Number (PAN)-registered wholesaler, firms and outlets to evade the tax. 

On November 9, the department has taken the several bundles of bills, purchase ledger and selling ledger under control from Mahabaudha based house. It is found that the bill producer used to tally bill of goods imported with the nexus among importers and outlets and wholesalers, the department informed.

The department is currently investigating the issue, the department source said. In last few months the department has investigated hundreds of business firms.

Source: THT