KARACHI: Customs Intelligence and Investigation Karachi has served a Contravention Report on M/s Automate Industries for evading government revenue through mis-declaration of description and PCT of imported goods.
A consignment declared as parts for audio/video/MP3 player imported by M/s Automate Industries was blocked after clearance through Green Channel and being assigned to gate out.
Examination of the goods and perusal of the GD and related documents revealed that imported goods have clear and undebatable Radio Function along with the Audio / Video MP3 player function. Even the catalog uploaded in the WeBOC system by the importer is crystal clear regarding the availability of the Radio Function in the imported goods.
The incidence of evaded duty and taxes on account of mis-declaration of description and PCT Heading worked out to be Rs9.264 million. When confronted, the importer paid the differential amount and the GD was de-blocked.
In order to quantify the evaded amount of duty and taxes on the previously cleared identical goods by the importer, the data of imports of said importer during the last five years was retrieved from PRAL/WeBOC.
On scrutiny it was revealed that the importer is enjoying Green Channel Facility and while misusing the trust has cleared various consignments under the same modus operandi. It was further revealed that the importer himself used to clear these goods in the correct PCT heading: however, since the imposition of Regulatory Duty on PCT heading 8529.9090, the importer initiated mis-declaring the description by hiding the function of Reception Radio in imported goods and cleared them under incorrect PCT heading chargeable to lower rate of duty and taxes.
The incidence of evaded amount of duty & taxes due to willful and deliberate mis-declaration of description of goods cleared previously vide 50 GDs has been worked out to be Rs256.245 million, which is recoverable from M/s Automate Industries.