KARACHI: The Collectorate of Customs Appraisement (SAPT) has seized a consignment of assorted stainless steel submersible motors worth Rs. 103.7 million for misdeclaration of description and capacity, resulting in evasion of duties and taxes amounting to Rs. 31.25 million.
The importer, M/s. Juma Khan Machinery Store, Quetta, had filed a Goods Declaration (GD) through its clearing agent, M/s. Fair Brothers International, under the WeBOC self-assessment system. The GD was selected by the automated Risk Management System for scrutiny.
The R&D section received a credible information through Collector SAPT Ali Zaman Gardezi to Additional Collector Moazzam Raza that some importers were involved in pasting or overpasting false or misleading labels on the imported motors, showing incorrect capacity or specifications (KW) to conceal the actual specification (KW) and avoid the correct application of Valuation Ruling No. 990/2016, which is based on KW.
The informer pointed out the GD of M/s. Juma Khan Machinery Store, which was under process. Principal Appraiser Tariq Aziz conducted re-examination, it was revealed that the importer had deliberately tampered with the original specifications marked on the motors by pasting or overpasting false or forged labels, showing lesser KWs than the actual manufacturer’s specifications.
The SAPT said that this was a clear case of undervaluation and tax evasion, and an offence under the Customs Act, 1969. The offending goods were seized under Section 168 of the Act and notices were served upon the importer, the clearing agent and the terminal operator. The role and involvement of the clearing agent and other accomplices will be investigated further. The SAPT added that if these facts had gone undetected, the government exchequer would have been deprived of its legitimate revenue to the tune of Rs. 31,253,653/-.