KARACHI: Directorate of Customs Intelligence & Investigation Karachi has detected misuse of concessionary SRO 655(I)/2006, as the importers were clearing iron and steel sheet/coils on concessionary rates and disposing the same in local market.
The imported goods can only be consumed by the importer for manufacturing of pans and accessories of motor cycles.
Information was received through Director Irfan Javed that M/s Islam Engineering (Pvt) Ltd, Lahore along with their clearing agent M/s. Bushra Enterprises are involved in evasion of duty and taxes by way of illegally disposing of iron and steel sheet/coils imported vide concessionary SRO 655(1)/2006 in the local market.
A team of Customs Intelligence & Investigation recovered 18 iron and steel coils (weighing 144MT) from M/s SPT Warehouse, S.I.T.E. Karachi, which as per the stickers pasted thereon showing production and heat numbers, were actually imported by M/s Islam Engineering (Pvt) Ltd.
The goods had also been ex-bonded by the importer and clearing agent. However, the said coils were illegally sold to M/s Recco Associates, Karachi instead of transporting them to Lahore for further processing/production at their unit.
The total quantity of coils cleared vide aforesaid GD is 513 MT. out of which 144 MT were recovered from the warehouse while 369MT have, reportedly been disposed of in the market.
The recovered goods have been seized for evasion of duty/taxes to the tune of Rs11.68 million.
Furthermore, as per data retrieved from M/s PRAL, 15,317 MT of prime quality iron & steel sheet/coils were imported by the said unit since July 01, 2016 under SRO 655(1)/2006. Prima facie, the entire quantity has been misappropriated clandestinely in the local market, involving duty/taxes amounting to Rs374.2 million.
FIR in the case has been lodged and further investigation is underway.