KARACHI: Chaudhry Muhammad Javaid Collector of Customs Adjudication II in the two identical mis-declaration cases has directed M/s Glaxo Smithkline Pakistan and M/s Abbott Laboratories Pakistan Limited Karachi to pay duty and taxes as both the companies evaded duties through un-due claim of exemption on consignment of aluminum roll-on caps.
Glaxo evaded taxes and Customs duty to the tune of Rs 37.23 million while Abbott hoodwinked Customs and evaded Rs 6.19 million on taxes and Customs duty head.
The Authority also asked Glaxo Smithkline to pay a penalty of Rs 5 million and Abbott Laboratories to pay a penalty of Rs 2 million in the terms of clause (14) of Section 156(1) of the Customs Act 1969. Similarly the Customs Agents of Glaxo namely Services International, AJ Mirza and Company and Pestonji J Daroga nd Company apparently connived with the importer to facilitate its clearance through deliberate mis-declaration have also been imposed the penalty of Rs 500,000 each.
The Customs agent of Abbott Laboratories namely Services International was also fined of Rs 500,000 as penalty for facilitating importer’s incorrect declaration by the Authority.
Both the companies imported and cleared aluminum caps under PCT heading 8309.9000 chargeable to Customs Duty at 25 percent through misuse of SRO 567(I)/2006 attracting 5 percent Customs duty.
The order said the respondents have grossly misused the Serial number 31 and 32 of Category D of said SRO to their respective benefits.
It was evident that in the pharmaceutical field both the caps and lids were used distinctly for special purpose and in no way these were one and the same thing.
Moreover the Customs Adjudication II noted that how the assessing officers of the clearance Collectorate failed to distinguish between closing lids and caps to be used as pharmaceutical packing material in the presence of huge literature on this account. The Directorate Intelligence and Investigation was also directed to ensure that Assessment Alert was issued to all the clearance Collectorates in the country on this account so that no such inadmissible concession was allowed to anyone who was not entitled for it.
Earlier in a similar Customs duty and taxes evasion case, Sami Laboratories has also been fined of Rs 3 million and asked to pay evaded tax money which was amounting to Rs 14.64 million.