KARACHI: National exchequer is being defrauded in a very systematic manner. Certain toys importers are evading around Rs0.5 million per container as the past 90-day data has been corrupted and toys are being assessed at values even lower than the raw material of toys, Customnews.pk has learnt.
Valuation Ruling No.991/2016 defines the customs values of manual toys at $2.25/kg and friction toys at $2.16/kg under PCT 9503.0040, but the goods are being assessed at $1.0/kg despite the fact that raw material of these manual toys i.e. plastic is assessed at $1.75/kg.
Over 200 containers of toys are imported every month in the country, and certain unscrupulous elements are evading Rs0.5 million per container on average.
These importers are importing toys in semi knock down (SKD) or completely knock down (CKD) form but they declare the goods to be baby toy parts or toy spare parts to circumvent the incident of valuation ruling. Moreover, the past 90-day data has been corrupted in a very organized manner.
According to the modus operandi, certain goods declarations (GDs) are assessed by Assistant/Deputy Collector at reduced values against payment of bribes and then the appraising staff including appraisers and principal appraisers are pressurized to process the GDs at lower values because similar goods had already been cleared by Assistant/Deputy Collector at lower values.
Around six months back, toys were being assessed at $1.5/kg and through the procedure mentioned above these values have been reduced to $1.0/kg and the benchmark 90-day data is no more authentic.
It may be mentioned here that Valuation Ruling No.903/2016 determined the customs values of juicer blenders. The valuation ruling provides that if the goods are imported in parts the customs values would be reduced by 5.0 percent. A similar provision can been added in Valuation Ruling 991/2016 of toys so that revenue leakage could be plugged.