M/s CAUSIS Mass Transit (Pak) Private Limited imported 50 units of low floor electric buses fully built drive away condition with rechargeable lithium-ion battery from M/s Causis General Trading LLC, Dubai and sought clearance through authorized customs clearing agent M/S Haris Enterprises under PCT heading 8702.4090 by claiming exemptions of Customs duty and Sales Tax at a declared value of $45000/unit C&F Karachi.

The importer paid upfront amount of duties and taxes to the tune of Rs.41.2 million. The importer/clearing agent also uploaded Commercial Invoice issued by the consignor to the consignee and Packing List at the time of submission of foresaid goods declaration.

On the directives of Collector Appraisement East Mr. Amir Thahim, Additional Collector Omar Shafique, Assistant Collector Saifullah Khan assigned Senior Preventive Officer Malak Muhammad Hashim to verify/check as to whether the importer has correctly declared their values and other particulars/specifications of the goods.

As evidence of identical/similar goods was not available in 90 days data and the declared per unit value of the impugned buses was found abnormally low when compared with the diesel and hybrid model buses which are cheaper than electric buses being latest technologies involved, available in the database and in view of credible information that the importer are trying to evade huge amount of duty/taxes as large number of buses are anticipated to be imported in the next few months and they will try to create evidence in this regards for a much lower value in comparison with the actual value as they or their related party has imported previously 2 buses at abnormally low values and managed to get them cleared on that abnormally low value.

The importer/clearing agent and the concerned shipping agent were asked to provide all relevant documents including documents submitted at the port of loading as no local agent of the manufacturer of the impugned buses in the country for ascertaining MRSP as per procedure laid down under CGO 14/2005 pertaining to assessment of vehicles was available.

Accordingly, the goods were assessed in the light of evidential export GDs i.e. $214,300/unit calculated after adding freight etc. While assessing the aforesaid buses, the assessing officer declined the exemptions of Sales Tax claimed by the importer in the Sixth Schedule and levied 1% CVT which was not applied earlier.

However, the importer/clearing agent did not contest/ agitated over the assessed per unit value in these reviews before the relevant Customs Officers.

The importers deposited the due amount of additionally calculated/due duty/taxes amounting to Rs 177.5 million.

From foregoing it is obvious that while the description and specification of the goods, port of loading & discharge, the carrier and the chassis numbers of China Customs’ export documents are exactly tallied with found description and specification of the goods, port of loading & discharge, the carrier and the chassis numbers of the impugned buses, but aforesaid Export GDs of China Customs shows that the consignor of the goods was Zhuai Guangtong Vehicle Manufacturing Co., Ltd which is also the actual manufacturer of the goods and consignee of the goods was M/s. Eurabus Gmbh, but in manifest submitted to Pakistan Customs the consignor is M/s CAUSIS General Trading and the consignee is M/s. CAUSIS Mass Transit (Pak) Private Limited meaning thereby that the bill of lading has been switched and thereby the importer M/s. CAUSIS Mass Transit (Pak) Private Limited has attempted to create third party interest, in order to conceal actual transactional value of the goods. There is no existence/presence of Eurabus Gmbh in Pakistan.

The scrutiny of the submitted proposal document to the Government of Sindh by the purported principle of the importer transpired that the unit price per bus is much higher than the declared unit value with Pakistan Customs as the project proposal documents clearly indicate that around 10000 identical/similar buses will be imported in this regard and the total bus financing would be USD 3.0 billion. Further, evidences are being sought from the relevant quarters.

It is evident that the importer M/s. CAUSIS Mass Transit (Pak) Private Limited and the agent M/s Haris Enterprises have knowingly and willfully attempted to evade legitimate duty and taxes by declaring untrue value in the goods declaration on the basis of fabricated and grossly under invoiced value of the goods.

Contraventions have been framed against the importer/clearing agent, accordingly.