Model Customs Collectorate (MCC) has detected massive evasion of Regulatory Duty (RD) on the export of raw and wet blue hides and skins. Sources told Business Recorder that credible information was received regarding the massive evasion of Regulatory Duty (RD) on the export of raw and wet blue hides and skins.
They said the export of raw and wet blue hides and skins in accordance with SRO 1011(I)/2005 dated September 27, 2005 was subjected to RD at the rate of 20 per cent. However, the information revealed that some unscrupulous elements had exported raw and wet blue hides and skins without paying RD during 2006-2009, they maintained. Consequently, the relevant data was retrieved from the system for scrutiny in order to verify the veracity of the information.
After scrutinising the records, it was found that around 155 consignments of wet blue hides and skins were exported by five exporters through Automated Web based system. They said the exporters had manipulated the H.S Codes of the said consignments in Good Declarations (GDs) to avoid RD. The sources said the estimated quantum of evasion of duty on these 155 consignments comes to Rs 54.159 million approximately. Furthermore, they said the MCC, which was striving to recover this evaded amount, had already issued notices to the said exporters and initiated further legal proceedings in this connection.