Some 30 steel pipe manufacturers have approached the Federal Board of Revenue (FBR) against customs'''' show-cause notices for recovery of millions of rupees customs duty and other levies on import of cold rolled coils (CRC) and hot rolled coils (HRC) of prime quality and availing concessionary rate of 5 percent duty under SRO 565 (1)/2006.
Hearing was fixed for August 23, 2010 at Customs House Karachi and customs had asked importers to appear in person or through accredited representative to defend the case. However, almost all parties gained adjournment for 15 to 20 days and informed the customs authorities that they have approached FBR for further clarification.
"We have approached the Board for explanation on customs duty relaxation under SRO 565 (1)/2006, as we believe that all quality products are allowed under the SRO and Customs show-cause notice are unjustified," the manufacturers said. They said that as there was some technical error at the time when data was being entered in the computers for PaCCS operation and in real condition release of imported goods should be on description instead of PCT code.
According to show cause notices issued by Collector of Customs Appraisement the pipe manufacturers had availed inadmissible exemption of customs duty which resulted in short payment of millions of rupees customs duty and other taxes. Meanwhile, on the request of Pakistan Iron and Steel Traders Action Committee, the Pakistan customs released HRC consignments imported through vessel ''''Free Goddess'''' on interim payment under section and post-dated cheque (PDC) of the remaining amount of taxes to adjust any differences in customs duty after the inquiry.
The action committee on August 21, 2010 had sent a letter to FBR chairman requesting for immediately stopping giving exemptions to vessel "Free Goddess" IGM No 1153 containing the consignments of Prime Hot Rolled Coils (HRC) imported with a quantity of 15,470 metric tons by the industries.