To curb under-invoicing of imports, Pakistan-China to start digital trade data exchange


KARACHI: To address under-invoicing of imports, Pakistan and China have reached an agreement to initiate digital exchange of trade data from April 30th, 2018.

This move is being carried out in lieu of bulging bilateral trade between Pakistan and China, which is hugely in favour of the world’s largest economy, reported The News.

Tax officials stated electronic data exchange platform would commence operations from end of April 2018.

An official of the Federal Board of Revenue stated beta-testing of this electronic data exchange platform is scheduled to be held this month.

They shared a memorandum of understanding for data exchange will be inked between Pakistan and China and draft of the agreement had already been finalized.

In a meeting between China’s and Pakistan’s commerce ministry officials last month, the former agreed to launch an electronic data exchange, said an official.

He said the formation of trade data exchange would help control under-invoicing imports from China, which was damaging Pakistan’s industry.

Last month, Pakistan Today quoting a Pakistan Business Council (PBC) research had reported about the variances and under-invoicing of imports between Pakistan and other trading partners including China.

Image Credits: Pakistan Business Council

Comparing figure of imports made by Pakistan from China and vice versa exports from the latter by PBC revealed an extraordinary difference. During the year 2016, apparel import from China were recorded at $60 million compared against reported exports by China of $329 million.

A similar pattern can be seen in the data reported by other trading partners mentioned above in the chart as China’s reported figures are five times higher than Pakistan’ volume of imports simultaneously.

Image Credits: Pakistan Business Council

It shows major under-invoicing and mis-declaration of imports is happening at Pakistan’s end. Textile imports from China are coming into Pakistan without paying the actual amount of duty, causing massive losses to national exchequer and destroying the domestic industry.

This anomaly highlights that Pakistan urgently needs updating of its reporting mechanism to restrict the mis-declaration of imports, which is also robbing national exchequer of precious tax collection during customs.

Furthermore, the disparity in synthetic fibre and garments imported from China by Pakistan for 2016 were recorded at $269 million compared to exported figures in same period of $739 million by China. This translates into Pakistan’s reported imports of synthetic fibres from China are just 36% of the figures reported by China as exports to Pakistan.

Image Credits: Pakistan Business Council


  1. Hi,
    First of all not all the importers are doin under invoicing
    Every product having so many qualities,
    How can someone understand that?
    If buy some products from china
    Having low cost and not compet the original material then

    • Naveed Bhai ,

      the shipping bill number of china export authority will be mentioned on every BL /AWB. it means it will show how much export value your shipper has shown in china customs. when in pakistan you will show less value , it will be caught red-handed, no excuse of quality will work because you will be showing low for same shipping bill.


      • If Pakistani imports are doing under invoicing then Chinese exports are also doing over invoicing. No one is angel.

  2. Ab to I form Kai baghair entry nahi delti.
    Ye to khud local industry ko tabah ker Rahai hain , duties kam kerdin. Trade agreement Pakistan Kai lya nuqsaan hai. Under invoice to ko roknai Kai lia net pai khud companies sai email kerkai prices confirm ho sakti hain.
    Aur bohat kuch ho sakta hai Agar ye apnai mulk Kai lya positive sochain aur rishwat pai sazai mot dain.

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