Customs Adjudication penalizes M/s BBJ Pipes Industries

KARACHI: Collector Customs Adjudication Dr. Shazia Ikram has penalized M/s BBJ Pipes Industries and clearing agent M/s Chanar Associates for attempting to evade government revenue through claiming inadmissible benefit of concessionary SROs.

According to the details of the case, M/s BBJ Pipes imported a consignment declared to contain prime quality hot rolled steel coils from Taiwan under PCT heading 7208.3790, 7208.3890 and 7208.3990 attracting customs duty 11%, sales tax 17% and income tax 5.5% and sought clearance against concessionary rate of customs duty 5.0 percent under SRO 474(I)/2006 and SRO 565(I)/2006 and also claimed income tax exemption.


The consignment was cleared without physical examination. R&D MCC Appraisement East had information that certain importers were importing secondary quality goods under the guise of prime quality and evading the government revenue by claiming inadmissible benefits of concessionary SROs.

The consignment was M/s BBJ Pipes Industries was examined and found to be containing secondary quality goods. The consignment was accordingly seized. Importers voluntarily opted for payment of leviable duty and taxes.

The R&D Appraisement East served a manual contravention on M/s BBJ Pipes Industries, which does not damage the profile of importer and the green channel status remains intact. However, the Contravention submitted in the system eliminates the green channel status of accused importer.

The importer had made a deliberate attempt to clear the secondary quality goods under the guise of prime quality with an intent to deprive the government from its legitimate revenue to the tune of Rs38.593 million.

Collector Adjudication Dr. Shazia Ikram observed that M/s BBJ Pipes had sought clearance of the subject consignment by mis-declaring the description of imported goods. Dr. Shazia Ikram established the charges and ordered confiscation of imported goods with an option for the importer to redeem the goods on payment of 35% of the value of the goods and imposed a penalty of Rs0.8 million as well as recovery of evaded amount of duty and taxes. Clearing agent M/s Chanar Associates was also imposed a penalty of Rs0.2 million.

It may be mentioned here that  M/s BBJ Pipes earlier imported a consignment and attempted to clear it through mis-declaration evading government revenue. However, when thrie attempted fraud was detected, they voluntarily paid the leviable duty and taxes. Interestingly, the importer was served with a contravention but the Chief Collector reportedly under severe pressure ordered to withdraw the contravention. Moreover, the R&D officials making the case were also transferred.

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