Pakistan and Iran tax authorities have agreed to develop a mechanism for the electronic exchange of bilateral trade data. The aim is to control misreporting and explore the ideal economic potential.
A memorandum of understanding (MoU) was signed by the Federal Board of Revenue (FBR) and the Iran Customs Administration for the exchange of data. The signing ceremony took place between Member (Customs-Policy/Operation) Javed Ghani and Iranian official Haideh Bagheripour and it was witnessed by the Acting Chairperson Nausheen Javaid Amjad.
The two countries will exchange values or documents in the case goods are imported or exported, under the agreement. Also, they will launch a completely automated clearance system. In a phased manner, it will have advance info regarding goods or passengers at the Taftan-Mirjaveh border stations and at other border stations.
According to Amjad there will be many benefits of the implementation of the MoU for both Iran Customs and FBR. It will ensure the availability of advance information about values, descriptions and goods quality to be imported from Iran into Pakistan. Also, it will reduce costs on goods clearance at the borders.
In a statement, she said, “Moreover, accurate valuation of the imported goods will lead to the realisation of greater revenues.”
A preferential trade agreement was signed between Iran and Pakistan back in 2006 to boost bilateral trade. But the increase was not sustained as it began to fall following the tightening of Western sanctions against Iran after 2008. According to the Pakistan Business Council (PBC), the bilateral trade volume stood at $369 million which was less in comparison to the trade value in 2003.