Attempt to misuse EPZ facility thwarted

ISLAMABAD: In less than a week's time, the Collectorate of Customs (Exports), PMBQ has thwarted yet another attempt of misuse of export processing zone (EPZ) facility to the investors and has lodged a criminal case against M/s AAA Packages, established in Export Processing Zone (EPZ), Landhi Industrial Area.

According to PMBQ, the investor obtained a No Objection Certificate (NOC) from Export Processing Zone Authority for import of rejected plastic rolls waste through their authorized Clearing Agent M/s. Ahsan Traders.

However, physical examination of the goods revealed that goods are CTCP Printing Plates assorted size total quantity 33,504 square meters, which implies that the accused in connivance with his authorized Customs Clearing Agent has made an attempt to import high value CTCP printing plate valuing $97,161.6 which is otherwise liable to duty and taxes to the tune of Rs.9,459,981/- (Customs Duty Rs.1867,615/-,Additional Customs Duty Rs. 339,566.4/-Sales Tax Rs./-3,550,167.13, Additional Sales Tax Rs.626,500/-,Regulatory Duty Rs. 1,697,832, Income Tax Rs.1,378,300/-) under the guise of rejected plastic rolls waste. The value of the offending goods has been calculated at Rs.16,978,322/-.

According to PMBQ, from the foregoing facts and circumstances of the case it was established that M/s. AAA Packages, EPZ Karachi with the collusion of their authorized clearing agent have committed an offence which fall within the ambit of Section 32 (1), (2),32A (1), (2), and 79 (1) of Customs Act, 1969 punishable under Clause 1 (i),14 (i), (14A),44 of Section 156(1) ibid read with Section 3, 6 and 7 of the Sales Tax Act 1990 punishable under Clause 5 of Section 33 (1) ibid further read with Section 148 (1) of the Income Tax Ordinance, 2001 punishable under Clause 15 of Section 182(1) ibid.

The PMBQ has informed the court that M/s. AAA Packages, EPZ, Karachi is also involved in case FIR No. No. SI/MISC/12/2017-CUS- KEPZ whereby they were charged for the violation of Section 2s, 32, 32A, 16, 192 and 219 of the Customs Act, 1969 read with Sub-Chapter XII of the Customs Rules, 2001 notified vide SRO 450()/2001 dated 18.06.2001, punishable under Clause 1(), 20), 43 and 86 of Section 156(1) of the Customs Act, 1969.

In the light of present case it is established that the investor of KEPZ is habitual to abuse and misuse the concessions granted by the Federal Government to the EPZ Investors and that they deliberately attempt to violate the provisions of the Customs Act, 1969.

Copyright Business Recorder, 2021