Motorcycle parts importer penalized for mis-declaration

KARACHI: The Customs Adjudication has charged a motorcycle-parts importer for mis-declaration and imposed fines and penalties for making attempt to deprive exchequer of its legitimate revenue.

The Adjudication found mis-declaration on part of M/s Paramount Corporation established and ordered confiscation of two imported consignments worth a total of Rs14.257 million;  Rs6.859 million and Rs7.398 million, respectively with an option to retain the goods on payment of fine equal to 35 percent of the value of the consignments i.e. Rs5.002 million (Rs2.413 million and Rs2.589 million). A penalty of Rs0.5 million was also imposed on the importer.

According to the details, M/s. Paramount Corporation electronically filed two Goods Declaration for the import of “Motorcycle Parts” from China for clearance thereof at the total declared C&F value of $20,254.74 and $21,570.70, respectively for the whole consignments.

The importer determined their liability of payment of applicable duties & taxes and paid the same. In order to check as to whether or not the importer had correctly determined his liability of duties and taxes, the Goods Declaration (GD) was selected for scrutiny and the consignment was subjected to physical examination of the impugned goods by appraisement staff of MCC Appraisement East.

On the basis of the Customs examination report and subsequent assessment, the importer paid additionally assessed payable amount of duty & taxes and the consignment was going to be cleared from Customs.

Meanwhile, in pursuance of receipt of a credible information regarding evasion of duty & taxes by the importer, R&D’s team of Model Customs Collecorate of Appraisement (East), comprising  Principal Appraiser Dost Mohammad assisted by Principal Appraiser Shafiullah, Appraising Officers Mohammad Javed Khan and Sohail Mughal, intercepted the impugned consignment and got the whole consignment physically re-examined jointly with the PICT’s examination staff.

Detailed re-examination of the first consignment revealed that as against the importer’s declared 23 items/motorcycle parts, the impugned consignment comprises of 850 Units of 70cc Motorcycle Engines in CKD condition (excluding Left Crank Case Cover & Starter); Motorcycle Horn, 850 pcs, net weight 107Kgs; (iii) Main Gear Shaft Assembly 200 units, net weight 110Kgs; Flasher Relay 880pcs, net weight 12Kgs and Regulator 270pcs, net weight 9 Kgs.

The same have accordingly been re-assessed by the Assessing Group at $68,129.856 as against the declared value of $19,829.74. Thus, the importer has grossly mis-declared the imported goods in terms of description, classification and value thereof to defraud national exchequer to the tune of Rs5.482 million.

The re-examination of second consignment revealed that as against the importer’s declared 28 items, the consignment comprised of only 900 units of 70cc motorcycles engines CKD condition (excluding left crank case cover, gear changer lever and kick starter).

The same have accordingly been re-assessed by the Assessing Group at $72,896.215. Thus, the importer has grossly mis-declared the imported goods in terms of description, classification and value thereof to defraud national exchequer to the tune of Rs5.105 million.

After detailed deliberation, the Customs Adjudication established that the importer deliberately mis-declared description, classification and value of the impugned goods in order to defraud the exchequer.

The Adjudication ordered confiscation of the imported consignments with an option to retain the goods on payment of fine equal to 35 percent of the value of the consignments.

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