ISLAMABAD: Collectorate of Customs Appraisement- South Asia Pakistan Terminal (SAPT), Karachi has booked an importer on evasion of duty amounting to Rs30million on import of submersible motors.
Sharing the details, official sources told Business Recorder that an importer having business address of Quetta imported a consignment of assorted stainless steel submersible motors, stuffed in 2 x20ft container. The importer filed Goods Declaration (GD) on December 01, 2023 seeking clearance of the goods under PCT heading 8501.5210 through its authorised clearing agent under WeBOC self-assessment system under section 79 of the Customs Act, 1969. The importer determined his liability of payment of applicable duties and taxes as per its declaration and sought clearance vide Section 79(1) of the Customs Act, 1969.
However, the GD was selected by WeBOC automated system for scrutiny in terms of Section 80 of the Customs Act, 1969 (through Red Channel) by automated Risk Management System.
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While the GD was under process, a credible information was received by the R&D section of the SAPT, through the Collector of Customs Appraisement-SAPT, Karachi to the effect that some importers are involved in mis-declaration of description/capacity of stainless steel submersible motors by pasting/ over-pasting false/misleading typed labels on goods reflecting incorrect capacity/specifications (KW) in order to conceal actual specification (KW) of imported stainless steel submersible motors to hood wink customs authorities and avoid the correct application of Valuation Ruling No. 990/2016, which is based upon KW, evading legitimate duty / taxes through under/short valuation of the importer motors.
In pursuance of the information GD were re-examined. Upon examination by the Customs Staff of Collectorate of Customs Appraisement, SAPT it was revealed that false/ forged/ misleading ‘ordinary typed label’ showing lesser KWs of the motors were pasted/over pasted on the motors concealing the actual manufacturer’s correct specifications/ KWs embossed on the goods.
This implies that the importer in active connivance with their accomplices, abettors and facilitators deliberately managed to paste/ over-paste false/ forged labels concealing actual manufacturer’s specifications of the imported goods in order to hoodwink the customs authorities to assess the goods as undervalued thereby avoiding correct application of valuation Ruling Number which was based upon the capacity of motors in terms of KW.
On comparison of the self-declaration and self-assessment made by importer and findings of examination report, images, documents scanned by the importer and assessment it was revealed that the importer has deliberately managed to tamper with the original specifications marked on the imported stainless steel submersible motors imported on December 01, 2023 by way of clandestinely pasting false / forged / misleading typed label concealing the actual specifications/KW and thus grossly mis-declaring the capacity of the imported motors in terms of KW in Goods Declaration, import documents, invoice and packing list with malafide intention to hood wink the custom authorities with clear deliberate intent to evade huge amount of duty/taxes to the tune of Rs. 31,253,653. The value of offending goods is worked out as Rs. 103,701,596.
Accordingly, the offending goods lying at SAPT were seized under Section 168 of the Customs Act, 1969 and Notice under Section 171 of the Customs Act, 1969 were served upon the Importer/ Clearing Agent/ Terminal Operator. “Had these facts gone undetected the government exchequer would had been deprived of its legitimate revenue to the tune of Rs. 31,253,653/,” the sources said, adding that this act(s) of the said importer/ proprietor and his other accomplices, abettors and facilitators, to mis-declare the capacity of aforesaid imported submersible motors in terms of the KW of the goods in import documents by way of tampering with the original specifications marked on the goods, was in order to hood wink the customs authorities to evade huge amount of taxes. This constitutes an offence within the meaning of Section, 32 (1) and (2), 32A, 79, 192 and 209 of the Customs Act, 1969 which is punishable under clauses 9, 14, 14A, 45 and 86 of section 156(I) read with Section 3, 6 of the Sales Tax, 1990 Punishable under Clause (5) of Section 33 of the Sales Tax Act, 1990. The offence also attracts the provision of section 148 of the Income Tax Ordinance, 2001.
The sources further stated that the role and involvement of the Customs Clearing Agent and other accomplices, abettors and facilitators shall be ascertained during the course of the investigation. Consequent upon approval of the competent authority, the FIR was lodged accordingly for in-depth investigation into the matter.
Copyright Business Recorder, 2023