MCC arrests exporter involved in multimillion rupees scam

Model Customs Collectorate (MCC) has claimed to have arrested an exporter allegedly involved in a multimillion scam. According to details, the department has seized a consignment of Wet Blue Leather" which was allegedly being fraudulently exported to Taiwan by mis-declaration and without payment of regulatory duty of more than one million rupees.
After an efficient vigil, the collectorate has not only seized the fraudulent consignment but also arrested Muhammad Naeem partner of Leather Cotex, Near Ghousia Masjid, Niaz Nagar, Kasur under the Customs Act, 1969. A credible information was earlier received that some unscrupulous leather exporters were transporting wet blue leather to Taiwan without paying regulatory duty which was leviable as per SRO No 1011 (I)/2005. Reacting on the said information, a special task team headed by Abdul Basit Chaudhary additional collector and Rafiullah Bangash In charge R&D section of the Collectorate was constituted.
The investigations carried out by the Task Team transpired that five exporters had earlier clandestinely exported as many as 155 consignments of wet blue hides/skins through the self-assessment automated web based system of the Collectorate declaring incorrect PCT Code to avoid levy of regulatory duty as the system calculates the same on the basis of PCT Codes. This act also promotes illegal export of leather from the country thus damaging the local leather garment industry and consequently harming the national economy as well.
The five delinquent exporters of the country namely Leather Cotex, Kasur, Paradise Leather Company, Kasur, Tata Trading Company, Lahore, Schon Leather, Kasur and Hussain Baig, Karachi had involved in evading Rs 54 million revenue in the last 4 years by adopting the same modus operandi.
The team after having efficient vigil intercepted a consignment having 3 containers, which entered for export to Taiwan by Leather Cotex Kasur. The total value of the consignment was declared as US $54440.91 equal to Pak Rs 4.709 million. The containers on examination were found comprising of "wet blue split" of PCT heading 4104.1900 as against the fraudulently declared description of buffalo side split leather & cow double butt leather of PCT heading 4113.9000. The ascertained description classifiable under PCT Code 4104.1900 attracts export regulatory duty at the rate of 20 percent in terms of notification SRO 1011(I)/2005.
Representative samples were also drawn from the said consignment and shown to the Pakistan Tanners Association, Karachi for further confirmation of ascertained description. The Association has confirmed the description as wet blue split leather. The consignment has been seized under section 168 of the Customs Act, 1969 and the exporter Muhammad Naeem of Leather Cotex, Kasur was arrested. The department has lodged an FIR under the Customs Act, 1969. Further investigation is underway.