Customs uncovers over Rs35m tax evasion thru mis-declaration of soyabean products

KARACHI: The Collectorate of Customs, Appraisement (SAPT), Karachi has uncovered over Rs35 million tax evasion through mis-declaration of soyabean products.

According to the details, the department has lodged two separate First Information Reports (FIRs) against a single company and its proprietor for allegedly evading over Rs35 million in customs duties and taxes.

The company is accused of importing soyabean meal from Mozambique and soyabean flour from Nigeria while falsely declaring the goods as “grain residues for animal feed.”

This mis-declaration allowed the importer to circumvent mandatory documentation requirements and undervalue the goods, resulting in substantial revenue losses for the government.

In the first case, involving imports from Mozambique, the company allegedly evaded approximately Rs10.99 million in duties and taxes. The total value of these goods is estimated at Rs30.691 million.

The second case, concerning imports from Nigeria, involves an even larger sum, with an estimated Rs24.407 million in evaded duties and taxes on goods valued at around Rs69.6 million.

The fraud came to light when customs authorities received credible information about importers misrepresenting soyabean products. Upon investigation, discrepancies were found between the import declarations filed in Pakistan and the export documents from the countries of origin.

The shipping line, M/s MSC Agency Pakistan Pvt Limited, provided crucial evidence in the form of export declarations and container tracking information that exposed the true nature and value of the goods.

According to the FIRs, the accused not only mis-declared the description and value of the goods but also failed to provide the necessary documentation required under the Import Policy Order, 2022 including phytosanitary certificates and other food safety compliance documents.

The offenses are said to violate multiple sections of the Customs Act, 1969, the Imports and Exports (Control) Act, 1950, the Sales Tax Act, 1990, and the Income Tax Ordinance, 2001.

Efforts are underway to apprehend the accused proprietor and identify any accomplices or facilitators involved in the scheme.

Copyright Business Recorder, 2024