KARACHI: Customs Authorities have imposed fine and penalty to the tune of Rs 0.228 million on A Shahzad Brothers for mis-declaring goods taking advantage of free trade agreement.
According to examination report of this case, the importer had declared the goods as Norfloxacin with quantity of 250 kilo gram of China origin. The examination confirmed about attempt of importer to misdeclare goods and cause revenue loss of national exchequer.
The reply submitted by importer against contravention stated that they had filed goods declaration under WeBOC system for importation of Pharmaceutical raw material Norfloxacin Base origin China. During the assessment, the importer admitted for seeking clearance of goods under Free Trade Agreement (FTA) regime vide SRO 6559(I)/2007 customs duty zero percent and claimed exemption for sales tax vide SRO 551(I)/2008 at zero percent.
The importer stated that examination and the shed staff confirmed description as per the initial declaration.
During the assessment the concern group officials in their report said that the goods were found in different PCT heading attracting 16 percent customs duty (under FTA regime) instead of the declared PCT and the importers are not entitled for sales tax exemption under SRO 551(I)/ 2008.
The adjudication found offences committed on imported goods, which were confiscated under different sections of Customs Act, 1969 for violation of various provisions.
The adjudication, however, gave an opportunity to the importers to redeem the impugned goods on payment of a fine equal to 20 percent of total value of goods to the tune of Rs 178,030 as prescribed under SRO 499(I)/2009 dated June 13, 2009, in addition to leviable duty and taxes. A penalty of Rs50,000 is also imposed on the importer.
The adjudication said the goods may be released after assessing on statutory rate of duty and taxes and after application of valuation rulings / advice or any other assessment data available on record.
The importer has also been warned in future dealings in clearance process.