Digital printing inks scam: DG I&IC ascertaining role of MCC's senior management

Directorate General Intelligence & Investigation-Customs is ascertaining the role of senior management of the Model Customs Collectorate (MCC), Islamabad, who constituted a committee of customs staff MCC, to facilitate an importer of Digital Printing Inks involved in evasion of duties and taxes of Rs 14.96 million.
Sources in the customs intelligence told Business Recorder that the importer in connivance with customs staff of the MCC Islamabad has tried to evade Rs 14.20 million. The staff of the Air Freight Unit (AFU), Islamabad is involved in the case. Additional Collector, AFU, MCC Islamabad formed a committee comprising of staff of MCC Islamabad and obtained report which supported the contention of the importer. The goods were cleared on the basis of the committee's report of MCC Islamabad as per the declaration of the importer. The staff of Regional Directorate (Intelligence & Investigation)-Rawalpindi after interception of the consignment, re-examine the imported goods and on the basis of genuine lab test report made seizure of the case. FIR has been lodged against the importer and Clearing Agent and concerned Customs Staff of MCC, Islamabad, who have cleared the consignment in spite of confirmation by the lab test report.
Details of the case revealed that acting upon specific information of Shaukat Ali, Director General, the Regional Directorate (Intelligence & Investigation)-Customs, Rawalpindi has thwarted an attempt of M/s Hunbul Tex (Pvt.) Ltd. to evade huge amount of duty & taxes, amounting to Rs 14.20 million at Air Freight Unit (AFU), Islamabad. The importer has imported Digital Printing Inject Inks and filed Goods Declaration through M/s Capital Cargo Services (Clearing Agent) G.D. No.12374 dated 11.02.2018 at Model Customs Collectorate (MCC), Islamabad.
Sources reported that the importer declared the imported goods (Digital Printing Inks) as Reactive Dyes @ 6 Euro per kg under PCT Heading 3204.1600 attracting customs duty (CD) 16%, sales tax (ST) 0%, additional customs duty (ACD) 1% & income tax (IT) 1 % thereby attempting to evade duty and taxes amounting to Rs 14.20 Million on the basis of mis-declaration of Sales Tax @ 17% and grossly under-invoicing. The examiner reported the goods as Digital Printing Injet Inks. Samples of the imported goods were sent to the Custom Lab, Lahore which reported that the goods are Digital Printing Inks which falls under PCT heading 3215.9090 attracting CD 20%, ST 17%, ACD 1% & IT 5.5%. Also the unit value of these goods is US$ 52 per Kg as per Valuation Ruling No.1237/2017 dated 18.12.2017. The custom staff of MCC, Islamabad instead of finalizing the GD on the basis of first examination and lab report, again sent the sample to HEJ Lab, Karachi. This action was unwarranted and aimed to obtain lab report as per the declaration of the importer with criminal intents. The second lab test report of HEJ Laboratory, Karachi was unable to support the contention of the importer to avail undue exemption of Sales Tax (17%) and avoiding the Valuation Ruling of US$52 per kg. Despite the said position, the Additional Collector, AFU, MCC Islamabad formed a committee comprising of staff of MCC Islamabad and obtained report which supported the contention of the importer. The goods were cleared on the basis of the committee's report and as per the declaration of the importer @ 6 Euro per kg under PCT Heading 3204.1600 with the total assessed value of Rs 4.23 Million and duty and taxes of Rs0.76 Million. However, the actual description of goods is Digital Printing Inks under PCT Heading 3215.9090 with total value of Rs 30.42 Million (US$ 52 per kg as Valuation Ruling)and duty and taxes of Rs 14.96 Million. The importer in connivance with customs staff of the MCC Islamabad has tried to evade Rs 14.20 million. Had the Director General (Intelligence & Investigation)-Customs, Islamabad not received information about this attempt of mis-declaration and evasion of huge amount of government revenue well in time, the state exchequer would have suffered loss of Rs 14.20 million. The staff of Regional Directorate (Intelligence & Investigation)-Rawalpindi after interception of the consignment, re-examine the imported goods and on the basis of lab test report made seizure of the case. The goods have been seized under the Customs Act, 1969 and FIR No.10 dated 23.4.2018 has been lodged against the importer and Clearing Agent and concerned Customs Staff of MCC, Islamabad, who have cleared the consignment in-spite of confirmation by the lab test report. Customs Intelligence has extended the scope of investigation to ascertain the role of senior management of the MCC Islamabad who has directed the formation of such committee to facilitate the importer in evasion of government revenue, the sources added.