Iron & steel scrap importer booked for abusing green channel facility

KARACHI: MCC Port Qasim has lodged an FIR against M/s K.M Steel Mills for mis-declaring description, quantity and value of the imported goods with an intention to evade legitimate government revenue.

M/s K.M Steel Mills imported a consignment from M/s Marwa Trading, UAE and sought clearance through clearing agent M/s Rauf Brothers declaring the goods to be iron & steel remeltable scrap. The status of importer is green channel. However, the GD was selected for scrutiny by the system. The examination revealed huge mis-declaration in description of the goods.

The importer in connivance with their clearing agent has deliberately and willingly mis-declared the description and PCT of the importer goods. Had this offence gone undetected, the government would have suffered a loss of Rs23.592 million.

Referring iron & steel scrap consignment is in violation of the public announcement that the consignments of iron and steel scrap will continue to be examined under the 1st Appeasement System (first Examination System). During physical examination, if any mis-declaration of material particulars of GD is detected or violation of the provisions of the relevant import policy is observed, the contravention report will be referred to the concerned adjudication for proceedings.

However, things are being run a little differently at the Customs Appraisement South as iron & steel scrap, beetle nuts and many other things are being cleared through the green channel and even if someone is found evading government revenue, contravention reports are not being served in the name of ‘trade facilitation’.

Sources said a large number of high-value and high-tariff goods were being cleared through the green channel under the garb of low-value and low-tariff goods while a large number of importers having questionable and in some cases objectionable record, have been given the status of green channel. These importers as well as high-profile importers including corporate sector importers have indulged in abusing the facility.

Sources said R&D sections of MCC Port Qasim, MCC Appraisement East and MCC Appraisement West had been assigned additional task of assessment, which is a full-time job. The R&D sections of these collectorates are busy in assessment and can not focus on intelligence gathering, which has also opened up room for revenue evasion.

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