KARACHI: Collector Customs Adjudication chaudry Mohammad Jawaid has penalized fruit juice importer and clearing agent for claiming inadmissible benefits under concessionary SRO to evade government’s legitimate revenue.

According to the details of the case Directorate General of Intelligence and Investigation-FBR (Enforcement) received information that M/s Agar International (Pvt) Limited are involved in unlawful claiming exemption of inadmissible zero rate of Customs Duty under SRO 1261(1)/2007 on import of Fruit Juices from Malaysia by mis-declaration of Hs Code and have evaded leviable duty and taxes.

In pursuance of the said information, previous clearance of the importer M/s Agar International (Pvt) Limited were scrutinized and identified several consignments of fruit juices of assorted flavors (Red Grapes/ Peach / Pomegranate / Orange Flavors), which were cleared from the Model Customs Collectorate of Appraisement (East/PaCCS), Karachi on in-admissible zero rate exemption of Customs Duty under Pak-Malaysia FTA issued vide SRO No.1261(I)/2007 by declaring single incorrect HS code 2009.1900.

Zero rate exemption of Custom Duty is available to Pine Apple Juice (HS Code 2009.4100/4900).

The incidence of evaded duty and taxes is worked out to Rs3.029 million.

After detailed deliberation of the case, Collector Adjudication Chaudry Mohammad Jawaid found the charges established and ordered the importer M/s Agar International to deposit the evaded amount of Rs3.029 million in the government exchequer. A penalty of Rs1.5 million was also imposed on the importer. Moreover, a penalty of Rs1.0 million is imposed on clearing agent M/s Lone Star Corporation.