M/s Sultan Enterprises penalized for mis-declaration and concealment of goods imported

KARACHI: The Collector of Customs Adjudication has imposed a fine of Rs296,999 long with a penalty of Rs150,000 on M/s Sultan Enterprises Import & Exporter for mis-declaration of items enlisted and non-declaration/concealment of goods imported in instant consignment in order to suppress the government duty and taxes.

According to the details of the case, M/s Sultan Enterprises electronically filed Goods Declaration (GD) through their clearing agent Ms/ Fazal & Co for the import of miscellaneous goods i.e. pad locks, bathroom accessories, shaver/trimmer, telephone sets, plastic beads, metal razors, hairclips etc at a declared net weight of 50900 kgs at declared value $14691.00.

The importer determined their liability of payment of applicable duties & taxes and sought clearance. In order to check as to whether the importer had correctly paid the legitimate amount of duties and taxes, the under reference GD was selected for scrutiny in terms of Section 80 of the Customs Act, 1969. Perusal of the case in the light of examination report revealed that the importer, imported the instant consignment from China wherein they concealed the weight of some items as well as few items founds un declared.

The importer in the written reply regretted that weight and quantity determined short on part of the goods and requested release thereof against recovery of usual duties/taxes etc. as well as imposition of fine/penalty at minimum level this time on warning as well as vacate show cause notice so that they may be able to clear the goods without any further delay because the same have already been fallen under heavy demurrage and detention which amounts accumulating day by day.

The Collector Adjudication in the order-in-original noted that the charge of mis-declaration against the importer is fully established. Accordingly, the offending goods are confiscated under clauses 14 and 45 of Section 156(1) of the Customs Act, 1969 for violation of the provisions of Sections 32(1) & 32(2) and 79(1) ibid. However, an option is given to the importer to redeem the goods on payment of a fine equal to 35percent on of the value of offending goods which is worked out as Rs129368 (ascertained value of the offending goods Rs369624 in addition to leviable duty and taxes.

Likewise, option is also in respect of other items to the importer to redeem the same under Section 181 of Customs Act, 1969 on payment of a fine equal to 20 percent of the value of offending goods is calculated as Rs. 167630 (ascertained value of the offending goods for the purpose of fine Rs838151) in addition to leviable duty and taxes. A penalty of Rs. 150000 is also imposed on the importer.

 

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