KARACHI: The Collector, Adjudication–II, Farrukh Sajjad passing an Order in Original (ONO) has ordered recovery of duty ans taxes besides slapping redemption fine as well as fine of rupees 300,000 upon importer Messers M. Nazeer M Rahim & Co and their Clearing Agent Messers Ali Associates was fined for rupees 100,000.

According to details, the said importer filed four Goods Declaration between 17-5-2021 and 30-8-2021 giving the description of goods to be Carbon Steel  Seamless Pipes. The GD was filed with PCT Heading 7304.3900 carrying Custom Duty at a rate of 11.52 per cent after FTA exemption.

The Appraising Officer Ilyas Gikhki and Principal Appraiser / Supertending Officer Farooq Ahmed found that the goods as per “Physical Description” are  Carbon Steel Seamless Pipe ASTM A-106, Grade B classifiable under PCT Heading 7304.1900 which carries duty at a rate 15.36 per cent.

Both the officers held that it was as case of mis-declaration of physical  Description of Line Pie in order to clear goods in PCT heading having lower rate of duty under China-Pakistan FTA.

The assessment was however changed during review stage based on the mis-representation and without considering  classification according to Pakistan Custom Tariff allegedly with active connivance of a senior custom officer.

The consignment was blocked at Gate Out Stage and entire exercise was conducted to establish the mis-declaration and attempt to evade actual custom duty and other levies. The Director I&I Khalil Yousafani, Additional Director Ghulam Nabi Kumboh & Deputy Director Toseef Gorchani take keen interest in establishing the case after its detection by the Appraider and Principal Appraiser after issuance of show cause and reply, the matter was then heard by the Adjudication Collector Farrukh Sajjad who after lengthy arguments passing ONO ordered recovery of rupees.

Rupees 4767088 in addition to other liabilities if any. The importer was also ordered to pay a penalty of rupees 300000 under clause 14 of section 156(1) of the Customs Act 1969 while clearing agent was also imposed with a penalty of rupees 100,000 as in case of misdeclaration both are to face consequences.

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