KARACHI: In a letter to Collector Appraisement West, Director I&I Karachi Saqif Saeed invited attention of the collectorate towards gross under-invoicing of CRC and HRC, which is causing over a billion rupees of revenue loss to the national exchequer every month.
According to details, on information regarding evasion of duty/taxes by M/s Safa Steel on import and clearance of steel sheets in coils of secondary quality by misdeclaring actual quantity.
A consignment declared to contain hot rolled (HR leader and with CR portion – HRLECR) steel sheet in coils of secondary quality was blocked after being assigned to Gate Out role.
Examination of the consignment found the goods to be 36.65 tons of HRC against declared weight of 44.5 tons, and 25.7 tons of CRC instead of declared 19.08 tons.
It is worth mentioning here that the difference of assessed value between the hot rolled and cold rolled steel sheets in coils is only $5/ton, which is against the normal business practice. This is crucial as assessment at the time of in-bonding is legally final.
Scrutiny of data conducted by Additional Director Ghulam Nabi Kamboh revealed that subsequent to dismissal of Valuation Ruling No.1213/2017, the subject goods are being cleared at the value raning from $380/ton to $750/ton despite the fact that even iron and steel scrap, re-rollable and re-meltable, is being cleared at values raning from $530/ton to $652/ton and $530/ton to $920/ton.
Logically, the values of the finished products should be much higher than that of scrap and raw material, which means that these goods are being under-invoiced by around 40 per cent.
Director I&I Karachi notes, ideally after the set-aside order of High Court Sindh, a new valuation ruling should have been issued to safeguard revenue.
The importer through agent M/s Trishmir Imports has agreed to the findings of the examination report and requested for release of the consignment for warehousing in bonded warehouse of M/s Pak Millat.
As regards the valuation aspect in clearance of cold rolled and hot rolled steel sheets suspected to be lower than the even iron and steel scrap, re-rollable and re-meltable, I&I Karachi requested clearance collectorate to look into the issue and proper assessment under section 25 of Customs Act, 1969 as valuation falls under the purview of clearance collectorates and Directorate of Valuation. Meanwhile, the consignment was deblocked for reassessment.
Sources said Muhammad Anwer owner of M/s Trishmir Imports is known to be running a mega scam, wherein importers are lured to indulge in revenue evasion as per plan designed by Muhammad Anwer, and then he blackmails the importers to mint further money.
Muhammad Anwer is the mastermind of several frauds and lure importers to indulge in revenue evasion, and then blackmails those importers to mint money.
Sources said Muhammad Anwer is patronized by a Customs official, and gets FIRs lodged against importers refusing his demands using his connections in the Customs. Meanwhile, Director Saquif Saeed has ordered investigations and inquiry into the affairs of Muhammad Anwer of M/s Trishmir Imports.