Imports of stainless steel sheets: DGI&I Customs detects Rs 25 million tax evasion

Directorate General Intelligence and Investigation (DGI&I), Customs, Karachi has detected Rs 25 million tax evasion in the imports of stainless steel sheets.

According to details, the department received credible information that some importers from Punjab were reportedly involved in evading duty and taxes in the imports of stainless steel sheets through mis-declaration. Reacting on this information, the DGI&I during investigation identified three importers (two from Lahore and one from Gujranwala).

In order to verify the veracity of the information and on the basis of the relevant information available in WeBOC system, import documents were retrieved from the concerned bank & shipping agents. During scrutiny of records, it was revealed that 12 consignments were imported by Lahore based importers while 14 consignments were brought in the country by Gujranwala based importer and all consignments were exported from China and USA.

These consignments were cleared on declared description 'stainless steel sheets/coils secondary quality AISI 201 Non Magnetic' and subsequently delivered to the importers.

However, the scrutiny of records revealed that all these actual import documents are silent about AISI series of the goods, which was illegally inserted through tampering in the documents uploaded in WeBOC by the importers/clearing agents.

Therefore, these consignments were assessed and cleared from customs at C&F value US$1010/MT and US$1150/MT for origin of China and USA, respectively however it should have been cleared at US$1620/MT and US$1840/MT as per relevant valuation ruling.

Therefore, it is established that these importers along with their accomplices committed fiscal fraud by unloading tampered import documents and evaded duty and taxes amounting to Rs. 25 million, collectively.

The department has registered the cases against these importers, who also got bail before arrest from the court.