Verification and evaluation of customs duty to a multi national company by the Government

Prof.Ram Guha Member

Prof. Sumit Sarkar Member

Prof. Neeladri Bhattacharjee Member

The nominees of UGC, ICHR and NCERT will be permanent invitees to this Committee. The Committee will evolve its own procedures and submit its recommendations to the Government.The Committee will have its term till the 15th August,1997, the day we complete 50 years of our independence.

(ii) Verification and Evaluation of Customs Duty to a Multi- national Company By the Government

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI RAMESHWAR THAKUR): Some Hon'ble Members of the House alleged that there was a move by the Government to hand over the customs appraisement work to a Swiss multi-national Company at the behest of World Bank and IMF. I categorically deny that there is any such move.

As Hon'ble Members are aware, under-invoicing and over-invoicing take place in our imports and exports. This entails loss of revenue and foreign exchange. Invoice manipulations occur in the country of export. It, therefore, often' becomes difficult for our Customs authorities sitting in India to detect and establish this.

There are professional services which specialise in detecting these malpractices at the country of -export itself. They do so by pro-shipment inspection of goods at the country of export before they are despatched. SGS, Lloyd's Register,etc., provide such specialised services.

SGS offered their services recently. They also held exploratory discussions with the Finance Ministry officials. To study the system in operation on the spot, a team of two

1107 Stat. Res. re. disapproval of Monopolies & Res. Trade Practices (Amend.) Ord. &

officials visited Singapore and Indonesia. The port of the delegation is under examination.

Sir, pre-shipment inspection even as this phrase implies,is an inspection to be carried out in foreign ports before goods intended for being imported into India are actually shipped. Such an inspection is not carried out by our customs department or for that matter, by any Indian authority today. It is in this area that SGS has claimed expertise and experience and offered their services.1 would also like to point out that what the company has outlined to our customs authorities, is a package of services that they offer. They have not so far even come to the stage of indicating their charges for the services offered. Thus there is no decision or commitment to use their services.

I also wish to categorically state that the World Bank of IMF or any other international Agency have had nothing to do with the proposal of SGS. What SGS stated was that they were promoted by the measures for industrial liberalisation introduced by the Government.

I wish to reassure the august House that the question of any abdication of customs authority does not arise. pre-shipment, only strengthens the hands of customs authorities in checking under- invoicing and over-invoicing. I further wish to reassure the august House that any decision in the mater will be taken keeping in view the best interests of the country and sentiments expressed by the Hon'ble Members.

13.15 hrs.

20.12.91