KARACHI: The Directorate of Post Clearance Audit – Customs has detected evasion of duty and taxes to the tune of Rs7.733 million by M/s Karachi International Container Terminal (KICT) through mis-declaration of classification.
Scrutiny of import data revealed that M/s Karachi International Container Terminal Limited imported a consignment of Self Propelled Telescope Boom Model No. : S- Booms. S-105, quantity 01 set, cleared from MCC Appraisement – West by mis-declaring the goods under PCT 8426.4100 attracting zero customs duty whereas the said goods are correctly classifiable under PCT heading 8709.1900 chargeable to custom duty of 30 percent.
Thus M/s KICT by misdeclaration of classification evaded duty and taxes totaling Rs7.733 million. PCA has advised M/s KICT to pay the evaded amount of duty and taxes in the national exchequer.
It may be mentioned here that M/s KICT seems to be a habitual culprit. In February 2015, PCA prepared a contravention report against M/s KICT for evading duty and taxes worth Rs50.401 million through claiming inadmissible benefit of SRO 659(I)/2007 pertaining to the import of cable, transformers, cable reel, control box etc.
Moreover, another contravention report was prepared in February 2015 against M/s KICT for evading duty and taxes worth Rs85.188 million through claiming inadmissible benefit of concessionary SRO 659(I)/2007 and SRO 575(I)/2006 by mis-declaring the classification of imported goods including hybrid control system for rubber type gantry cranes, electric house and generating sets, air-condition hybrid system etc.
Another contravention report was prepared in March 2015 against M/s KICT for evading duty and taxes worth Rs238.015 million through claiming inadmissible benefit of concessionary SRO 575(I)/2006 by pertaining to the import of used quay cranes with spreader, standard accessories etc.
M/s KICT since the beginning of year 2015 has so far evaded a sum of Rs381.337 million depriving national exchequer of its legitimate revenue.