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CPI-M flays plan on preshipment evaluation

In a major move, the government is reportedly plans to clip the wings of the Indian customs and entrust its function of duty appraisal and collection to foreign companies.

Imports into India from Europe and the USA will, according to the plan, be assessed for value before shipment at the country of origin by the companies and this will be communicated to the Indian customs.

Rather than make its own assessment and collection of duty, Indian customs will be obliged to follow the advice of the foreign evaluators.

While the move many sound like good news to many genuine importers, The Communist Party of India-Marxist sees it as a surrendering of the sovereign function of evaluation and collection of duties to foreign companies.

Moreover, the CPI-M suspects the move will encourage the foreign evaluating companies to get contracts from the Indian government by paying high kickbacks.

"The CPI-M is is totally opposed to this proposed change as it is a dangerous step which will open floodgates for massive corruption at high level," the party had said in a press release recently.

The CPI-M cited the experience of other countries in Africa and Asia which showed that preshipment assessment led to an increase in kickbacks.

According to the CPI-M release, a particular company was named by the Pakistan government for giving kickbacks after being appointed for preshipment assessment for that country.

Following an official inquiry, the Pakistan government recently announced that there was ample evidence to show that the company SGS and its subsidiary had paid six per cent kickbacks to people acting for former prime minister Benazir Bhutto and her husband.

The revenue collected by customs shows that the present system is working and there is no reason for departing from the system of appraisal and realisation of duties on imports by the Indian customs.

"The CPI-M politburo wants the government to come out and state its position on appointing foreign companies for preshipment assessment and calls on the government not to proceed with the proposal." the note said.

UNI