Karachi: In a major enforcement action, Customs Appraisement West has lodged an FIR against M/s Farid Traders for alleged mis-declaration of imported goods aimed at evading government revenue.
M/s Farid Traders, located at House No. 3761, Mughla PO, Chowk Yadgar, Peshawar, and 25, MID City Mall, Murree Road, Rawalpindi, filed Goods Declaration No. KAPW-HC-80790-25-11-2024 for the clearance of a consignment declared to contain 21,610 assorted jackets valued at $0.25 each, totaling $5,402 (equivalent to Rs. 1,534,012).
On the directives of Collector Naveed Elahi, Deputy Collector R&D Saima Butt ordered a detailed examination of the consignment. The inspection, conducted on November 29, 2024, revealed significant discrepancies between the declared and actual contents. The detailed packing list was scanned and the physical examination revealed that the importer had mis-declared the description and quantity of goods. M/s Farid Traders manipulated the quantities of men’s and boys’ jackets, which have higher valuation, by switching them with lower-valued children’s jackets.
The mis-declaration resulted in an initial assessment of duties and taxes amounting to Rs. 7,799,399. However, upon correct assessment according to valuation rulings No. 1776 and 1777 of 2023, the duties and taxes were recalculated to Rs. 9,981,299, highlighting an attempted evasion of Rs. 2,181,900.
An official noted that this incident reflects a broader trend of mis-declaring adult clothing as children’s clothing to evade duties. The official also suggested that valuation rulings should be based on the weight of clothes to prevent such evasions.
Under Section 79(1) of the Customs Act, 1969, importers are required to file true declarations. M/s Farid Traders’ failure to comply with this legal requirement, coupled with their intent to deceive customs authorities and evade duties, led to the FIR being lodged.
This case underscores the vigilance and stringent measures being employed by Customs Appraisement West to curb revenue evasion and ensure compliance with import regulations.