The New Nation - Internet Edition

Syful Islam

The government has decided to appoint a Pre-Shipment Inspection (PSI) audit agency to detect the irregularities of the PSI companies.

To this effect the National Board of Revenue has invited Expression of Interest (EoI) from the audit agencies for short-listing.

The main job of the PSI audit agency will be to conduct post clearance audit and verify the correctness of information of Clean Report of Findings (CRF) for a maximum of 20 per cent of the CRF submitted by the PSI agencies to the customs authority per month.

The audit agencies will have to verify the correctness of information-values of the goods, quantity and quality-reflected in CRFs and other documents or in endorsed invoices. The audit agency will also conduct investigation in the country of export or if necessary in any other country or countries to ascertain the reality or otherwise or the CRF.

The appointed audit agency will also have to arrange training on pre-shipment audit system, risk management, commercial forgery and fraud prevention and also foreign training and tour for the customs officials to enhance the skill through transfer of technology.

There is huge allegation of gross irregularities against the PSI companies, which includes mis-declaration of import; wrong HS code classification, under invoicing and tax evasion during import through third country.

The government had decided to appoint an audit agency sometimes earlier to monitor activities of the PSI companies but failed to do so due to the opposition of some unscrupulous customs officials, businessmen and PSI agencies.

Recently the government cancelled contract of a PSI company for its alleged involvement in gross irregularities. Three other PSI companies are still working.

Meanwhile, a committee of the NBR has recommended the government for continuation of jobs of the PSI companies. NBR sources said the existing three-PSI companies might get extension of their contracts for two more years.