KARACHI: Directorate of Post Clearance Audit (PCA) has served a contravention on M/s Pakistan Telephone Cables Ltd for evading government revenue of Rs13.397 million by mis-declaring the classification of imported goods.
On the directives of Director PCA Gul Rahman, Deputy Director Sajid Ali Baloch and his team comprising Appraising Officers Faiz Mudassir, Azhar Abbas and Umair Jahangir conducted audit of import data related to Imports and clearances of ‘Copper Rods/Strips in coils/rolls 8.00 mm’ correctly classifiable under PCT heading 7408.1100 chargeable to Custom Duty 10 percent.
It was observed that certain importers are clearing these goods by mis-declaring the same under PCT heading 7407.1020 chargeable to Custom Duty 5.0 percent, in order to evade duty/taxes.
M/s Pakistan Telephone Cables Ltd imported 13 consignments of ‘Copper Rod Refined as per ASTM B-49/92 Cross Sectional Dimension 8MM and Electrolytic Copper Rods 8.0 mm’; and cleared the same from MCC Appraisement (East) Karachi, through their clearing agent M/s Naushad Enterprises by willfully and knowingly mis-declaring 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.
It is established that by way of mis-declaration of PCT heading, M/s Pakistan Telephone Cables Ltd, Karachi, with active connivance of their clearing agents M/s Naushad Enterprises made a deliberate and willful attempt to government revenue totaling Rs13.397 million.
Accordingly, an Audit Observation was issued to M/s Pakistan Telephone Cables Ltd, Karachi. The importer however failed to come up with any tangible evidence and explanation and they were also unable to refute the charges leveled by the Department.
In view of the aforesaid M/s. Pakistan Telephone Cables Ltd, Karachi, are held to have intentionally and willfully caused loss to the government exchequer. Contravention report is forwarded for initiation of adjudication proceedings in the case.