KARACHI: The Directorate of Post Clearance Audit (PCA) Karachi has served Audit Observations on eight different importers for evading significant amount of duty and taxes through mis-declaration and claiming inadmissible benefits of concessionary SROs.
During the audit of import clearances made under different concessionary SROs, PCA Karachi found several discrepancies and evasion of duty and taxes.
The companies who have been served Audit Observations include M/s Abdullah Impex and M/s Flash Communications, M/s KK Enterprises, M/s Master Link, M/s Mohammad Ishaq & Sons, M/s TR Traders and M/s Zaigham Enterprises who mis-declared the classification of uncoated polyester film (milky white) to claim inadmissible benefit of SRO659(I)/2007.
All these importers misdeclared the goods under PCT Heading 3920.6310, in order to avail the benefit of SRO 659(I)/2007, whereas the goods are correctly classifiable under PCT Heading 3920.6200 on which concessionary rate of duty/taxes is not available.
In identical imports made by the other importers, assessing group has categorically rejected the declared classification of goods under PCT heading 3920.6310 as well as claim of concessionary rate of Customs Duty of 5.0 percent under SRO 659(I)/2007 on the ground that the imported items i.e. Uncoated Polyester film is correctly classifiable under PCT 3920.6200 chargeable to Customs Duty 20 percent, Sales Tax 17 percent and WHT 6.0 percent.
M/s Dewan Mushtaq Trade Limited misdeclared the classification of coated/treated calcium carbonate to evade customs duty.
All the above mentioned importers have been advised to deposit the short-paid amount of duty and taxes into the government exchequer.