KARACHI: Directorate of Post Clearance Audit (PCA) Karachi has served Audit Observation on M/s Newage Cables Pvt Limited creating a demand of Rs14.679 million, an amount which was short-paid by the company.
During the audit of import data related to imports/clearances of “Copper Rods/Strips in coils’ correctly classifiable under PCT heading 7408.1100 chargeable to customs Duty of 10 percent, it has been observed that certain importers are clearing these goods by mis-declaring the same under PCT heading 7407.1020 chargeable to customs Duty of 5 percent, in order to evade duty/taxes.
M/s. Newage Cables (Pvt.) Ltd imported 03 consignments of ‘copper wire rods 8.0 mm’ and cleared the same from MCC Appraisement (West) and MCC Appraisement (East) Karachi through their clearing agent M/s Cargo Care (Pvt.) Ltd by willfully and knowingly misdeclaring the goods under PCT Heading 7407.1020 chargeable to CD 5.0 percent however, copper rods in coils/rolls are correctly classifiable under PCT heading 7408.1100 chargeable to CD 10 percent.
By way of mis-declaration of classification, M/s Newage Cables with active connivance of clearing agent M/s Cargo Care evaded a total of Rs14.679 million. A Contravention Report to this effect has been served on the accused in this regard.