MCC Export’s recovery drive in full swing; million recovered from defaulters

KARACHI: The Model Customs Collectorate of Exports has initiated a rigorous crackdown against the defaulters on the directives of Manzoor Hussain Memon, the Collector of MCC Exports, Custom House, Karachi.

The Special Recovery Team comprising Deputy Collector Moona Baloch and Principal Appraiser Amin Farooqui has been advised to make recovery of all outstanding amounts even as low as Rs 5,000. Earlier, recoverable amounts of less than Rs100,000 were left unattended, which then turned into dead recoverable.

Now, the Team is taking help from other government agencies such as NADRA, and scores of recovery as well as bank account attachments have been issued and recoveries to the tune of millions of rupees have been recovered.

Recently, an amount of Rs25,000 was recovered from M/s Fardos Textile Industries Faisalabad. Moreover, a surcharge of Rs1.325 million was also recovered from M/s STC (Pvt) Ltd.

According to details, M/s STC (Pvt.) Ltd; Karachi in the year 2010 exported brazz/bronze scrap vide four exports GDs under HS Code 7403.2100. The HS Code is for brass alloy and not for brass/bronze scrap. Brass / bronze scrap appropriately falls under HS Code 7404.0000 as per international classification which is verified from the HS Code for brass applied by China, India and UK.

A regulatory duty of 25 percent is applicable on waste and copper scrap under HS Code 7404.0000.   M/s STC (Pvt) Ltd; Karachi was found to misdeclare the HS Code to avoid regulatory duty applicable on brass/bronze scrap leviable under HS Code 7404.0000. Had this misdeclaration gone undetected, the Government would have suffered revenue loss of Rs2.524 million.

M/s. STC (Pvt.) Ltd; Karachi and their clearing agent M/s. Classic International Karachi were called upon to show cause as to why the aforesaid duty should not be recovered from hem. The case was adjudicated by the then ADC (Exports) Syed Tanivir Ahmed.

The adjudicating authority directed the exporters to pay the RD amount Rs.2.524 million and Rs.5000 penalty was also imposed on exporter and Rs.5000 on their clearing agent. The case was referred the case to the D.C Recovery Cell, MCC Exports, Custom House, Karachi to recover the same.

The Special Recovery Cell initiated proceedings and recovered the principle amount early in the year 2014 and also recovered leviable surcharge of Rs.1.325 million in November 2014.

Manzoor Memon has appreciated the Special Recovery Team; DC Ms. Mona Iffat Baloch and Principal Appraiser Amin Farooqui on this good job and further directed to apply all the measures to recover the long outstanding government dues in the interest of state.

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