KARACHI: MCC Appraisement East has served a contravention report on a tyre importer M/s Al Raziq Tyre & Trading Company for evading government revenue through misdeclaration of description, quantity and classification of the imported goods.
Certain importers are manipulating the system as they do not file container numbers along with the packing list and the packing list provides vague information. Therefore when a container is selected for examination, their wrongdoings go unchecked because of this loophole in the system.
M/s Al Raziq Tyre & Trading imported tyres from China in three containers and sought clearance. Three packing lists were uploaded in the system, but the container number was not mentioned on any of the packing list. Scrutiny of documents revealed that earlier too M/s First Way Link had imported a consignment of tyres from same consignor in China in six containers and uploaded six packing lists in the system without mentioning the container numbers.
These elements usually declare a uniform description and classification in all the packing lists mentioning lesser quantity of high-value and high-tariff goods and more quantity of low value goods. These importers deliberately conceal actual description and quantity of goods for getting the same assessed on suppressed value for evading legitimate amount of taxes.
Collector MCC Appraisement East Ashad Jawwad had issued directives to keep strict vigil on the Goods Declarations (GDS) in which the container numbers had not been mentioned along with the packing list. Principal Appraiser Hamood-ur-Rehman detected the scam and subsequently a sum of Rs7.8 million was recovered.
The Risk Management System (RMS) has miserably failed in safeguarding the legitimate revenue of the government of Pakistan as the unscrupulous elements have found ways to manipulate with the system.
After the authorities minimized the examination of imported consignments, instances of mis-declaration, under-invoicing and misuse of Green Channel facility increased significantly. There is no check in WeBOC for stopping the Green Channel Goods Declaration where Valuation Ruling is applicable.
MCC Port Qasim had recovered a sum of Rs6.8 million from M/s Unilever as the company had cleared consignment of tea bag filter paper through Green Channel without applying the relevant Valuation Ruling.
Principal Appraiser Khalid Umer detected the case and pursued it efficiently and the recovery was made. Another sum of Rs2.0 million was recovered which was avoided as the goods were cleared from Green Channel without applying the Valuation Ruling.
Collector Saeed Akram had issued directives to lay special focus on post release verification (PRV), so that the government’s revenue could be safeguarded.
It may be mentioned here that Green Channel facility is misused big time and a huge loss is inflicted on the national exchequer as the RMS is not fully capable to deal with the scams.
Recently, a tyre importer was found manipulating with the system as they managed to crack the criteria of examination by the system. Similarly, another consignment of refrigerators was caught wherein the imported had attempted to defraud the exchequer.
An official said this was a serious matter and the Chief Collector or the Member Customs should issue an alert in this regard to safeguard government revenue.