Customs department after smelling a rat in huge imports of textile lubricant 'coining oil' in last four months, has now completely halted its clearance, as the department is collecting samples of the imported commodity for laboratory examination. Customs sources said that although there was no substantial demand from textile sector for this lubricant, over 635 million tones coining oil had been imported only in June 2014.
Following unprecedented volume of coining oil imports in June, customs department has now detained all 19 containers carrying 0.38 million tones of coining oil at ports and started collecting samples of the consignments for laboratory test. Moreover, sources in Customs said that it was premature to say about specification of the oil, as no report had so far been submitted to the department for further action.
But market sources claimed that import of coining oil was rapidly increasing after revision in base oil valuation in April, 2014. They further said that valuation department had not only increased assessment value of base oil from $1000 per ton to $1280 per ton but also raised 5 percent customs duty to 10 percent.
They said that after this development, unscrupulous importers in order to evade customs duty and to get base oil consignments assessed at less value were reportedly involved in mis-declaration to clear base oil consignments under the guise of coining oil. Furthermore, sources said that assessment value of coining oil was $1000 per ton with 5 percent customs duty, however base oil was assessed at $1280 with 10 percent duty. They said that although importers had so far caused around Rs 30 million losses to the national kitty through mis-declaration of base oil imports, customs department had still no clue to determine specification of said imported lubricant.
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