Misdeclaration of alloy steel wire rod: Probe initiated against importers, agents, customs officials

KARACHI: Pakistan customs has initiated inquiry against importers, clearing agents and customs officials involved in mis-declaration of alloy steel wire rod during past three years, sources said.
The sources said that the probe initiated against a large number of cases detected in which alloy steel wire rode mis-declared as non-alloy steel wire rod that carry significant revenue implication.
In this regard Collector Appraisement of Model Customs Collectorate has sent a memorandum to Member Customs saying that the collector was probing certain cases, carrying significant revenue implication, of Alloy Steel Rod of PCT heading 7227.9000 customs duty at 20 percent, which were declared by the importers as Non-Alloy Steel Wire Rod classifiable under PCT heading 7213.9190, attracting customs duty at 10 percent, which further reduces to five percent in terms of free trade agreement SRO.659(I)/2007 dated June 30, 2007, notwithstanding that the percentage of Boron indicated in MTCs thereof renders such goods to be Alloy Steel as per Chapter Note 1(f) of Chapter 72 of Pakistan Customs Tariff.
The memorandum further said that since Boron, as a constituent element, is invariably witnessed in MTCs of aforesaid commodity, and percentage of the same is crucial to classifying these goods thus entailing quantum of duty and taxes leviable thereon, therefore, in order to verify the description in cases where wire rods have been declared to be Non-Alloy steel; representative samples need to be sent to M/s. KRL Laboratory for test purpose. Similarly, the MTCs submitted for such consignments, may indicate total absence of Boron or its percentage may be indicated below the pitch i.e. 0.0008 percent stipulated in Chapter Note 1(f) of Chapter 72 of Pakistan Customs Tariff, to avoid classification under appropriate PCT i.e. 7227, in such cases of reasonable doubt once again resort has to be made TR via M/s. KRL Laboratory, being a reputed lab for such tests. [the_ad id=”31605″] The memorandum further requested the Member Customs that while the probe by the collectorate in those cases underway the authorities can issue alert for other field formation to prevent such cases.
Earlier, the collectorate issued a show cause notice to M/s Pakistan Wire Industry (Pvt) Ltd in such case where the importer found involved in mis-declaration to evade the government revenue to the tune of Rs2.31 million having value of Rs.12.93 million.
Sources in the collectorate told Customnews.pk that a senior appraiser was under scrutiny who was retained the posting at the collectorate despite transfers during last few years.

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