KARACHI: MCC Appraisement West has lodged two more FIRs against several accused for evading government revenue through mis-declaration on import of ball bearings and spark plugs.
FIRs have been lodged against M/s Asri Trade Impex, M/s Forward Corporation, M/s Bearing Sales Center and M/s Pakistan Agencies.
Federal Board of Revenue (FBR) had apprised Chief Collector Appraisement South of massive mis-declartion and under-invoicing in the import of spark plugs of automobiles and ball bearings and parts thereof.
All consignments of spark plugs and ball bearings were blocked, while post release verification of already cleared consignments is being conducted.
Valuation Ruling No 1401/2019 determined the valuation of Spark Plugs for Cars into two Categories i.e Iridium Tipped Spark Plugs and Non-Indium Carbon Tipped Spark Plugs. The Value of Iridium Tipped Spark Plugs has been determined in the subject Valuation Ruling at $6.14 per piece whereas the Valuation of Non Indium Spark Plugs has been determined at $0.59 per piece.
It was known that Iridium Tipped Plugs are being cleared under the garb of Non Iridium Tipped, Plugs causing a colossal loss to the exchequer.
Customs data of the past years shows that majority of the declarations and assessments of these products are those of Non-Iridium Tipped Spark Plugs despite of the fact that car manufacturers use Iridium Tipped Spark Plugs.
Similarly, Valuation Ruling No. 967/2016 determined the values of Motorcycle Spark Plugs of Japan and Chinese Origin as $0.5 and $0.15 per piece respectively. Japan origin motorcycle spark plugs are being cleared as of China origin and in many instances the values determined under the Valuation Ruling have not been applied
Valuation Ruling No. 1408/2019 fixed values for various types of ball bearings/parts from $2.3 to $4.8 per KG for bearings parts imported in Kit/Packet or SKD form and $1.80 to $3.80 for bearing parts imported in bulk packing.
Similarly, the Ruling also fixed values for whole bearings of various origins and make/models per piece. Certain elements are heavily indulged in under invoicing and misdeclarations by clearing whole bearings in the garb of parts and components. Furthermore, the revised Valuation Ruling is misused through import of high weight bearings and declaring the bearing numbers of lower weight.
Two teams each led by Additional Collector Zubair Shah and Additional Collector Yasim Murtaza had been formed to conduct the audit and scrutiny. Both the teams have detected massive evasion and created demand of millions of rupees.
An official said severel more FIRs would be lodged against the traders involved in this dirty business.