Customs detects misuse of SROs; remedies suggested on various imported goods

KARACHI: Pakistan Customs has detected misuse of Statutory Regulator Orders (SROs) by various importers of different sectors, sources to Customnews.pk
According to an official note issued by Model Customs Collectorate Appraisement (East), some importers are availing undue benefit of concessionary SROs however, in some cases of misdeclaration have been identified while the goods declaration GDs was scrutinized during clearance of data.
In order to ensure the collection of actual duty and taxes, various remedies have been suggested by the officials on some imported goods that included:
Joggers: Joggers are being declared under PCT 6404.1900 to claim the benefit of FTA from China, whereas these are classifiable under PCT 6404.1100 and are not entitled for benefit of FTA.
It is suggested that joggers should be cleared under PCT 6404.1100 without extending the benefit of FTA from China.
Artificial leather shoes through Valuation Ruling No. 531/2013 dated January 7, 2013 and 421/2012 dated January 30, 2012 wrongly mention PCT 6403.9900 against footwear made of artificial leather as a result clearances are being made under this PCT heading.
It is proposed all type of footwear may be classified on the basis of material used in their manufacturing as per tariff, Directorate General Valuation is being requested to correct the PCT heading in Valuation Rulings. Instead of PCT heading 6403.9900, PCT headings 6404.1900 or 6405.2000 is to be given in Valuation rulings.
Polyester Fabrics are classifiable under PCT 5407.5200 and are not entitled for FTA benefit from China but clearance are being made under PCT 5407.4200 at 12 percent CD instead of 15 percent.
The officials observed that polyester fabrics are classifiable under PCT 5470.5200 and are not entitled for FTA benefit on imports from China.
Woven interlining In order to avoid application of VR 428/2012 dated February 13, 2012, some importers try to misdeclare Buckram (PCT 5901.1000) as woven interlining material (PCT 5903.9000) and seek clearance on $2.04/kg.
The customs officials sought that woven interlining may be treated as at par with buckram and should be assessed as per VR 428/2012 dated February 13, 2012 at $2096/kg or $3.12/kg as the case may be.
Pharmaceutical packaging material (e.g glass vial etc) are entitled for concessionary rate of customs duty at five percent provided they produce a quota certificate from IOCO as required under SRO 567(I)/2006. However, there is no uniformity of ensuring this requirement at various customs stations.
Instructions may be issued to ensure the production of certificate from IOCO and GDs which have been assessed without such certification may be re-assessed.
Tiles of different origin are being imported from UAE besides direct imports from Malaysia but since there is no VR for these origins, there is no uniformity in clearance of such tiles. Some customs stations are applying the guideline values of 2004 whereas, some are allowing clearance on certain loadings on China origin values.
Till the time, valuation ruling is issued for these origins, values of 2004 may be applied uniformity as the same are already being implemented in MCC, Appraisement (West) with the consent of concerned association.
Garment accessories items like ribbon and lace which are otherwise specified under relevant PCT headings and are being assessed in the range of $3/kg, are being mis-declared in PCT 6217.1000 under the garb of garment accessories to avoid higher values.
Ribbons are classified under PCT 5807 whereas laces are classified under PCT 5804, therefore the same may be classified accordingly and assessed on the basis of database values.

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