ISLAMABAD; Pakistan Computer Association (PCA) has rejected the proposal for a ban on the import of used computers and IT accessories. The proposal is being considered at ministry of information technology on behest of some vested interest groups.

Munawar Iqbal, the president of PCA said that the move will benefit multinational companies dealing in new computers and increase their profits, take computers out of the range of poor students and affect livelihood of thousands of vendors dealing in used computers.

He said that at present, there is no indigenous manufacture of computers and IT equipment. All computers, used and new, are being imported. Some international companies, manufacturing computer hardware with the help of some local profit-seeker groups, had been pressing the government to impose a ban on import of used computers and IT equipment, obviously to control the local market, he added.

While terming the move as “unjust and based on malevolence”, he said his association would resist the ban at every level. He added that Pakistan was a third world country where 80 per cent consumers buy second-hand computers.        

“Multinational companies are trying to get a ban imposed on import of second-hand computers to capture the market, but the government should realise that a large number of poor people cannot afford to buy a new computer costing between Rs25,000 and Rs45,000,” Munawar Iqbal said, adding that the price of a used desktop PC ranged between Rs5,000 and Rs10,000.       

The ban would deprive poor students of their right to modern education and the country would lose millions of dollars in foreign exchange if the proposal was approved, he said.

ISLAMABAD, February 22: Pakistan Computers Association (PCA) has expressed serious concern over the growing number of cases of harassment by the Directorate General of Intelligence and Investigation involving seizure of computer consignments during transportation by the courier companies and transport/cargo companies after due clearance from the ports.

          The staff of DG Intelligence and Investigation and mobile squads has recently seized a large number of consignments of computer industry which were dully cleared by the customs authorities at the ports. During the transportation of such consignments by the transport companies, the staff of the directorate has intercepted a number of consignments, which were accompanied by the necessary import documents. The consignments have been seized even after submission of bill of entries and other import papers. The issue has been taken up with the present Director General of Intelligence and Investigation at Islamabad. He has assured that the staff would be barred from taking such actions causing harassment among the business community. It is unfortunate to note that the directorate’s staff is still involved in seizures of such consignments. Once the consignments have been cleared by the port and customs department, the checking and confiscation of duty paid computer goods during their transportation from one city to another by transport companies has no justification.

          The PCA has categorically said that it is a clear violation of the World Bank funded Tax Administration Reform Project (TARP), which talks about minimum interaction between the customs and business community. The harassment by the DG staff with no legal backing has shown an attempt to destroy the whole process of reforms of the Federal Board of Revenue (FBR). An important component of reforms under the TARP is to reform the DG Intelligence and Investigation, but the increased number of harassment by the staff of directorate seemed to be a deliberate attempt to hamper the whole reform process in Pakistan. The results of the reforms under the TARP are evident from the fact that FBR Chairman and FBR Member Customs are mum over the issue, which recently created panic among the entire computer industry.

The FBR has committed with the IMF at Dubai to raise additional revenue through administrative and enforcement measures to meet target of Rs.1380 billion during 2009-2010. If the FBR wanted to raise revenue through illegal seizure of documented goods, it is a clear violation of the commitments made with the IMF under the Letter of Intent (LOI) and WB’s TARP. Such kind of checking of carriers at roads is a major violation of the FBR commitment with the World Bank that the harassment of the customs staff would be ended through special pack packages and performance based incentive packages to the customs officials. DG intelligence should show their performance by checking massive irregularities during clearance of consignments through Pakistan Customs Computerized System (PACCs) and “One Customs” Clearance system instead of harassing the small vendors of computer industry on roads.

          The association has decided to approach the World Bank Inspection Panel through Customs and Excise Group for redressal of their complaints. The World Bank Inspection Panel is coming to Pakistan from February 24, 2010 to Pakistan to investigation the creation of Inland Revenue Services. The association would try their level best to raise their voice before the World Bank Inspection Panel through any channel available.

          The PCA has appealed to the FBR Chairman, Member Customs, Director General of Intelligence and Investigation and World Bank Inspection Panel to immediately intervene and stop its staff for increasing revenue collection through such illegal enforcement measures across the country.

ISLAMABAD, Jan 26: As bizarre as it sounds, the Federal Investigation Agency on Tuesday raided an air-conditioner manufacturing factory in Sector I-9 for allegedly using counterfeit software.

Following a complaint from world software giant, Microsoft, the orders for the raid came from the top when Director FIA, Shahid Nadeem Baloch and Director Islamabad zone Tariq Hanif Johya instructed Deputy Director Karam Mazhar Hussain Shah to carry out the raid on the Sabro factory renowned for its air-conditioning systems. It was not clear why the Microsoft and FIA singled out Sabro’s IT section when most of the government departments, including FIA besides numerous corporate setups were using pirated software and especially when it was easily available in the market for less than Rs50. “The matter is in court which is why Microsoft cannot comment,” said Microsoft.

Leading the raiding team was Deputy Director Corporate Crime Circle FIA, Mazhar Uddin Shah who said, “We raided the IT section of the factory and confiscated computers and software present there.”

Cases against the Chairman, Sabro, Mohammed Siddiq Chaudhari and the Directors of the company, Mohammed Khalid and Mohammed Shahid along with several others had been registered and was following up with their arrests, the Deputy Director said.

According to Mazhar Shah, FIA had received a complaint and a raid was immediately ordered by FIA higher officials.

“Microsoft had been trying to convince Sabro to use licenced software. Talks failed after year-long negotiations,” he said.

Prior to the raid, the FIA team had requested the owners of the factory to present them with the Microsoft software licences, he said adding, “Instead of producing the licences, the owners fled the scene. The FIA team confiscated about 30 computer systems from the IT section of the factory. The situation almost got out of hand when the staff that outnumbered us surrounded our team. Police was called in as backup to defuse the situation.”

FIA had registered a case and established a team for the arrests of the culprits still at large.

“FIA has prepared a list of all those companies which are using counterfeit and unlicensed Microsoft software. Not only are these companies affecting the revenues of software manufacturers but are depriving the government of millions of rupees in tax revenues as well,” he said.

The raid was carried out under the Copy Right Act of 1962. FIA has initiated a plan to carry out raids and investigations against those organisations involved in the use of unlicensed software worth millions of rupees in their daily business processes.

ISLAMABAD (January 23 2010): The Directorate General (DG) of Customs Valuation, Karachi, has considerably enhanced customs values of all kinds of computer printers, raising 20-25 percent prices of printers in the local market. President, Pakistan Computer Association (PCA), Munawar Iqbal told Business Recorder on Friday that the ruling of the DG Valuation has been recently issued without consulting the stakeholders.

It has increased prices of around 270 different types of printers. The valuation ruling has been based on unrealistic international prices creating panic among the entire computer industry. The directorate has not invited the stakeholders for submission of their viewpoint before issuance of valuation ruling.

Besides, substantial increase in prices, there is also a shortage of computer printers used by students, researchers and professional. He requested the FBR Member Customs Munir Quershi to intervene into the matter and direct the DG Valuation to withdraw the controversial valuation ruling. The ruling could be revised in consultation with the stakeholders.

He added that the DG Valuation has committed a serious violation of the Tax Administration Reform Project (TARP), which talks about facilitation and active consultation with the business and trade to resolve their issues. The unilateral issuance of such a ruling is a serious issue, as the directorate has fixed extraordinary high customs values of computer printers.

According to the valuation ruling of the DG Valuation, based on information that import values of computer printer were being under invoiced, this Directorate General undertook exercise to determine the customs values of Computer Printer in terms of Section 25A of the Customs Act, 1969. The meeting of all stakeholders was held for the determination of the customs values of imported goods and the relevant importers/stakeholders were requested to participate. However no one attended the meeting, the ruling said.

As per the ruling the analysis of the import data of Pakistan Customs Computerised System (PACCs) and "One Customs" clearance systems showed that the declared prices were comparatively much lower in comparison to the prices prevailing in the international market.

The declared values were mostly being disallowed being on the lower side. Therefore, for the same reason, data of identical/similar goods under the provisions of section 25(5) and (6) of the Customs Act 1969 was found equally inapplicable. Hence, reliance was made upon the valuation method defined under the provisions of Section 25 (7) of the Customs Act, 1969.

Simultaneously, verification was also made through discreet enquiries from the sources/dealers in the international market, to gather information, which has revealed that the computer printer were available in vast and varied specification/ functions having wide range of prices depending upon their individual output and category. Accordingly, the directorate has determined customs values under Section 25-A of the Customs Act, 1969 for implementation.

All the collectors of customs are advised to ensure assessment of these items as per determined customs values. The values are inclusive of cost of essential packing and shall remain valid until revised. However, if the invoice/declared value is higher such higher value shall be applied. In case of HS code does not match with the description of goods mentioned in this ruling, the goods shall be examined to confirm HS code and description as mentioned in the ruling, directorate added.