Manufacturing of soaps: Raw materials cleared through under-invoicing

KARACHI: Raw materials used in the manufacturing of soaps have reportedly been cleared through under-invoicing. According to sources, a large number of consignments carrying palm acid oil were cleared by various importers at the assessment value from US$50 per ton to US$410 per ton during the period from January to December 2020 allegedly in connivance with customs officials.

Sources claimed that the international price of palm acid oil at that time was hovering around “US$800 to US$1000 per ton”, but the customs department cleared the same at “US$50 to US$410 per ton”.

Meanwhile, soap manufacturers have also sent a letter to the Directorate General of Customs Valuation, requesting it to revise the valuation ruling as per international market prices in order to avert malpractices. However, no revision was made in the valuation rulings so far, sources said. When contacted, the customs officials refused to comment on the issue.

Copyright Business Recorder, 2021