CIE imports: DPCA detects Rs 8.24 million tax evasion by leading cellular company

The Directorate of Post Clearance Audit (DPCA), Karachi has detected tax evasion amounting to Rs 8.24 million in the imports of one of the big cellular companies. According to sources, DPCA during scrutiny of import data observed that the mobile company was involved in manipulating PCT heading to evade duty and taxes in the imports of cellular infrastructure equipment (CIE).
They said that although the CIE was falling under PCT heading 8517.6990 chargeable to custom duty @ 15 per cent, sales tax at 17 per cent, additional sales tax @ 3 per cent, additional custom duty @ 1 per cent and withholding tax @5.5 per cent, the company cleared the same under PCT heading 8471.5000 chargeable to custom duty @ 2 per cent, sales tax at 17 per cent, additional sales tax @ 3 per cent, additional custom duty @ 1 per cent and withholding tax @5.5 per cent.
Consequent upon the said misdeclaration of PCT heading, the said cellular company has provided a financial shock of Rs 8.24 million to the national kitty. They said that goods were CIE, which in no way, fell under PCT heading 8471.5000 and were vividly and correctly classifiable under PCT heading 8571.6990.
Replying to a question, sources said that it was revealed during online examination that equipment was meant for use in GPRS/UMTS solutions and supported a number of networking, routing, signalling and wireless sharing protocols/interfaces. However, the same equipment was imported by other companies under correct PCT heading, ie, 8517.6990.