KARACHI: Directorate of Post Clearance Audit (PCA) has detected revenue evasion to the tune of millions on account of availing inadmissible benefit of South Asian Free Trade Agreement (SAFTA).
During the audit of import data of Polyester Dyed Ladies Suiting Shirting Fabric/ Polyester Dyed Fabric’ classifiable under PCT Heading 5407.5200, Deputy Director Sajid Baloch found that certain importers are misdeclaring the classification of the imported goods by declaring it under PCT heading 5407.4200 in order to avail inadmissible benefit of reduced rate of Customs Duty under SAFTA.
The subject goods are correctly classifiable under PCT heading 5407.5200 where benefit of SAFTA is not applicable.
Several importers imported a number of consignments of Polyester Dyed Ladies Suiting Shirting Fabric/ Polyester Dyed Fabric by mis-declaring the PCT as 5407.4200 and cleared the same on payment of Customs Duty 5.0 percent availing inadmissible benefit of reduced rate of Customs Duty under SAFTA vide SRO 1274 of 2006 from MCC Port Muhammad Bin Qasim
The aforesaid imported goods are correctly classifiable under PCT 5407.5200 chargeable to Customs Duty 16 percent where the benefit of SAFTA is inadmissible.
PCA Karachi has detected evasion of Rs34 million and served contravention report on M/S G M Enterprises, M/s Malik Corporation, M/s H.S Unicorn Mart, M/s Horizone International, M/s GNK Enterprises, M/s Al Yousf Enterprises.
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