R&D Appraisement West detects massive revenue leakage
KARACHI: The R&D MCC Appraisement West has detected massive revenue leakage due to wrong classification of copper rods.
Deputy Collector Ghulam Nabi Kamboh received information that some importers are importing 'copper rods' in wrong PCT Heading and paying customs duty at 5.0 percent instead of actual payable 10 percent and in some cases 20 percent.
According to the information, PCT Heading 7407.1020 caters for copper rods "not in coils" whereas the goods are being imported in coils and being declared in wrong PCT to pay lesser amount of duty taxes.
In order to ascertain the facts, a GD was blocked at gate out stage. Examination of this GD found the goods to be copper rod on wooden spools. The above GD has been assessed in declared PCT i.e 7407.1020 and at 5.0 percent, whereas the actual PCT of the same should have been 7408.1100 and Customs Duty should have been paid at 10 percent.
In order to check this phenomenon, clearance data under PCT 7407.1020 from July 01, 2014 to till date has obtained form PRAL, which shows that at least 77 GDs have been cleared under wrong PCT. Short levied amount in these 77 GDs has been worked out to be Rs24.8 million.
The Customs will scrutinize all GDs, initiate contravention where warranted and ensure recovery of the short levied amount.