The Directorate of Intelligence and Investigation of Central Board of Revenue (CBR), Karachi, has seized a container with 18,130 kg Palm Acid Oil (PAO), imported from United Pyramid, in Malaysia, by Madina Industry, of North Karachi.
Sources in the Directorate told Business Recorder here on Friday that action had been taken on a tip-off, which said that the item had been imported with the aim to market it as edible oil.
According to HEJ Laboratory, not more than 5 percent of FFA is consumed for cooking purpose and it is fit for human health. However, the laboratory examination showed that PAO had a high ratio of FFA value at 38 percent, which is seriously injurious for human health besides producing hazardous diseases, which may cause liver and stomach cancers, Hepatitis B and C, etc.
Expounding details of the case, he said that Madina industry had evaded the taxes by making inadmissible input adjustments in sales tax, regularity duty, custom duty, advance duty and other taxes against imported PAO and only paid Rs 126651 on taxes accounts.
He said that PAO had been imported as required for industrial purpose but actually it was to be marketed as edible product. Therefore, 'Palm Stearin oil' had been imported, which was the initial stage of PAO, and after a long refining process the oil contamination was removed and transformed as edible oil.
When asked, how it had been confirmed that oil would be packed and marketed as edible oil, sources said that Palm Stearin Oil was very similar to 'ghee', and with minor treatment it could develop same aroma as ghee. It has been mentioned in Import Trade Policy 2007 that Stearin Oil must not be imported in natural state and mixing of any colour is essential for import, with the aim to lessen the chance of using oil as cooking material, they added.
Sources said that action had been taken on the information that unpacked oil had been supplied in bulk during Ramazan at cheaper rates. The Directorate is planning to grab the whole ring of illegal oil importers, which caused immense losses to national exchequer besides menace to it consumer's health, they said. Seizure report has been forwarded to the adjudicating authority for proceeding further, sources added.
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