ISLAMABAD: The Customs Collectorate SAPT, Karachi has booked another importer on evasion of duty on import of submersible motors.

According to details, a consignment of Assorted Stainless Steel Submersible Motors was imported, stuffed in 1x20ft Container. Upon arrival of the goods the importer filed Goods Declaration (GD) bearing No KAPS-HC-12515-01-08-2023 seeking clearance of the goods under PCT heading 8501.5210 and declaring the value of goods as $ 31,608 through its authorised clearing agent Fair Brothers International, under WeBOC system vide Section 79 of the Customs Act, 1969.

The importer determined his liability of payment of applicable duties and taxes as per declaration and sought clearance vide Section 79(1) of the Customs Act, 1969.

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While filing of Goods Declaration, the importer furnished the import documents along with invoice No TGIC23T011 on May 25, 2023 purportedly issued by Tianjin General Industry Imp & Exp Co Ltd wherein the value of the goods, i.e., “204 units of water submersible motors” were shown as $ 31,608. The importer declared the same value $ 31,608 in the electronic invoice submitted along with GD.

The goods were however, assessed in terms of Valuation Ruling 990 of December 13, 2016 as per KW capacity of the motors declared in the GD with assessed value of $ 46,257 as against the declared invoice value of $ 31,608. The goods were accordingly allowed release in the light of self-declaration and the self-submitted documents.

Subsequently credible information was received that the importer has grossly suppressed and mis-declared the actual value of the goods imported vide KAPS-HC-12515-01-08-2023 and has submitted manipulated/fabricated invoice reflecting lower value as against the actual transactional value of the imported goods. In pursuance of said information, the Collectorate, in its letter of December 20, 2023 sought record and export documents including export invoice and Goods Declaration of China Customs from concerned shipping agency Sharaf Shipping Agency (Pvt) Ltd, in respect of subject consignment. In response to the Collectorate letter, the shipping company Sharaf Shipping Agency (Pvt) Ltd, in letter of December 27, provided attested copy of the invoice No TGIC23T011 of May 25, 2023 from Tianjin General Industry Imp & Exp Co Ltd, China along with China Customs Goods Declaration No 020220230000500414 of June 12, 2023 both amounting to $ 124,212 and packing list of May 25, 2023.

The export documents showing actual transaction value amounting to $ 124,212 were procured under proper musheer nama from the shipping company.

On perusal and examination of documents, i.e., invoice and China Customs Goods Declaration received from shipping agency, it was revealed that the importer has deliberately managed to conceal the actual transactional value of $ 124,212 which was clearly mentioned in the procured invoice and China Customs GD against the declared invoice value of $ 31,608.

Furthermore, letters of December 29, 2023 were written to importer and terminal operator for supply of information/record in respect of subject consignment.

The terminal operator in letter of January 04, 2024 provided invoice payment receipt, sales tax invoice and gate pass of container delivery and details of person who took delivery of impugned goods, however, no reply of the importer was received.

According to sources, by way of clandestinely concealing the actual value of goods the importer had grossly mis-declared the value of the imported motors in Goods Declaration uploaded invoice as well as the electronic invoice with malafide intention in order to hoodwink the Customs authorities with clear deliberate intent to evade huge amount of duty/taxes to the tune of Rs 10,113,260. The government exchequer thus had been deprived of its legitimate revenue to the tune of Rs 10,113,260 which is recoverable. The value of offending goods is worked out as Rs 35,636,422.

This act(s) of the Lahore-based importer/proprietor and all other accomplices, abettors and facilitators (yet to be ascertained), to mis-declare the value of aforesaid imported submersible motors, by way of concealing of actual transactional value/ original invoice and submitting the manipulated invoice declaring lesser amount in order to evade huge amount of taxes, 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). The offence also attracts the provision of Section 148 of the Income Tax Ordinance, 2001.

Consequent upon approval of the competent authority, FIR No 01/2024 has been lodged accordingly for in-depth investigation into the matter.

Copyright Business Recorder, 2024

Comments

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Ch K A Nye Jan 08, 2024 09:07am
Well it's a start.
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NXT Jan 08, 2024 10:29am
@Ch K A Nye , only until a mutually beneficial ‘settlement’ is agreed to!
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Johnny Walker Jan 08, 2024 03:03pm
Didn't pay the normal bhatta
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Chawla.i Jan 08, 2024 04:03pm
Rather f.i.r i think is not a solution better its a matter of valuation, importer will justify his stand which shd b heared as per law , resolving the issue in d earliest possible and dignified way is highly recommended as f.b.r has to overcome so many issues that has to b resolved,ammicABLY
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Twadi pehn di Jan 08, 2024 04:36pm
seems like under the table negotiations didn't work.
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