Customs department has failed to evolve separate Pakistan Customs Tariff (PCT) code for importing coining oil, which is being cleared under the head of mineral oil during last four months; it is learnt here on Tuesday. According to sources, the imports of coining oil have been increased manifold soon after revision in base oil valuation in April, 2014.
They said statistics indicated that over 635 million tones coining oil had been imported only in last June; however a severe dip had been witnessed in the imports of base oil. Therefore, clearance of coining oil consignments has been halted for over a week and Customs department has detained 19 containers carrying 0.38 million tones coining oil at ports for laboratory test.
Moreover, sources said that no action had so far been taken against importers, who confirmed mis-declaration in coining oil consignments. However, market sources claimed that imports of coining oil had been increased when assessment value and customs duty of base oil had been revised by valuation department. Presently, Customs department is assessing base oil consignment at US $1,280 per ton and collecting 10 percent customs duty.
Therefore, importers in order to evade customs duty and assess base oil consignments at less value were mis-declaring base oil as coining oil to clear it at US $1000 per ton with five percent customs duty as prescribed in the PCT of mineral oil. They lamented that customs department despite having a financial shock of over Rs 30 million so far was dilly-dallying to determine exact specification of said imported lubricant that led its clearance under wrong PCT code.
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