Customs responds to media complaints

Customs Department officials have promised to address traders’ complaints about delays, lack of transparency and disputes over the value of imported goods.

At a press conference on January 26 at Customs headquarters on Strand Road officials responded to a host of critical reports published in local publications, including Hot News, Auto World and Weekly Eleven.


The media had reported complaints by importers that they had lost money because disagreements over the value of the cars had delayed their release from ports in Yangon.

Officials admitted the department should upgrade its technology and increase staff, and said the law should be amended.

“The trade volume has increased a great deal, and there is some confusion over the value of goods, particularly automobiles,” said U Thein Swe, a director in the Customs Department.

“I don’t accept that all the criticisms are valid, but I agree there are weaknesses, and we are going to fix them,” he said.

He said Customs used many sources to estimate value, including internet websites, international vehicle guide books, catalogue prices, enquiries in the local market and dealers in other countries.

The department also found that some traders underestimated the value of their goods. For example, one trader declared the value of a 1998 Ferrari sports car worth about US$44,000 to be only $5000. After customs duties and commercial taxes had been levied, the vehicle was said to be worth of only K3.2 million, although its actual value was nearly K29 million.

“The country suffers from a lack of adequate revenue from trade,” said U Thein Swe.

U Kyaw Win, director of the Customs Department in Yangon, said Myanmar favoured using the value assessment system established by the World Trade Organisation, which is based on actual prices sourced from websites. However, the system required new and costly technology.

“If we use the WTO system, the problem of value assessment will decrease,” he said.

Customs will also work with the Ministry of Commerce on an accurate value assessment system, he said.

The department had already adopted measures to speed up customs clearance, including the use of telegraphic transfers instead of letters of credit. Longer-term improvements required a change in the law, and a switch to e-Customs from the manual system.

Farmer Auto Sales Centre chief executive officer Dr Soe Htun said he did not know how Customs assessed the value of imported goods, but said traders suffered from delays, and called on customs officers to negotiate.

“Companies have to pay revenue, we cannot avoid taxes, but customs officers should also consider our point of view,” he said.

On January 29, Deputy Minister for Communications and Information Technology U Thaung Tin introduced proposed legislation in the Pyitthu Hluttaw to facilitate e-commerce in order to adapt to changing circumstances and to bring Myanmar into line with other countries.

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/3992-customs-responds-to-media-complaints.html