KARACHI: Directorate of Post Clearance Audit (PCA) has recovered Rs20 million from two importers including M/s A.H Garments.
On the directives of Director General Seema Raza, Director Khalil Yousafani and Additional Director Sheeraz Ahmed, selected M/s A.H Garments for audit on the basis of risk profiling determined through desk audit of past clearances.
Post Clearance Audit is a comprehensive monitoring mechanism to verify the correctness of trade related declarations, detect trade related frauds and to review the accuracy and reliability of records in order to safeguard the government against revenue loss and to ensure compliance with legal obligations.
Desk audit of transactions reflects that M/s A.H Garments evaded duty/taxes amounting to Rs.9.27 million on account of misclassification of PCT in respect of 07 GDs under which imported yarn (Spun Polyester) classifiable under per 5509.2200 has been mis-declared as sewing thread for classification under PCT 5401.1000 to evade duty/taxes.
Record of GDs shows that even in case of polyester sewing thread the import value of goods has been substantially mis-declared at lower values ranging between 1.41 -1.53 USD / Kg. Value of corresponding Spun Polyester Yam (2 or 3 ply), in terms of Valuation Ruling 1582/2021 and 1465/2020 ranges between USD 1.381 to 2.555/kg. Moreover, the importer claimed inadmissible concessions causing revenue loss to the national exchequer.
PCA has issued similar notices to several other importers and recovery of millions of rupees is expected.