Customs Appellate Tribunal remits fine, penalty on importer and agent

KARACHI: The Customs Appellate Tribunal allowed identical appeals filed by M/s Axis International and M/s MAK Enterprises clearing agent against the imposition of re-demption fine and penalty on alleged charge of mis-declaration in terms of loading capacity and value.

The appeals were preferred against a show cause notice issued by Additional Collector Adjudication Karachi. The show cause originated as it was reported to the Model Customs Collectorate, Appraisement that accused M/s Axis International imported a consignment from China declared to contain “LoadCell Type No Y2-C capacity 100 Kgs with accessories’. The clearance of consignment was sought clearing agent M/s MAK Enterprises who filed a declaration under HS 9031.8000 with a total declared value of  $900.

Upon examination of the consignment it was revealed that the appellants misdeclared the loading capacity which was found to be 30,000 Kgs instead of declared capcity 100 Kgs.

The department assessed the value for payment of duty to the tune of $30,000 as against the declared value of $900. Customs imposed a fine of rupees 1.092 for redemption of confiscated goods at the rate of 35 percent. The clearing agent was also fined Rs50,000.

The appellate tribunal during hearing ordered re-examination of the consignment. As a result of re-examination it was established that the appellant’s declaration was in accordance with the impugned goods and no violation was found.

The tribunal in view of re-examination report allowed the appeals ordering release of the confiscated goods with delay detention certificate. The fine imposed against clearing agent was also remitted by the tribunal.

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