KARACHI: The import case involving Al-Habib Traders, NTN No. 3748248, has drawn attention for alleged misdeclaration of imported goods. The firm electronically filed Goods Declaration No. КРРАНС-36771-06-01-2025 through its authorized customs agent, declaring the import of stainless steel sheets/coils under the AISI 200 series (non-magnetic, secondary quality) at a declared invoice value of USD 45,802.20.
In accordance with Section 80 of the Customs Act, 1969, the case was flagged for scrutiny to verify the accurate payment of duties and taxes. Upon physical examination, the goods were identified as stainless steel sheets of the AISI 300 series (non-magnetic, secondary quality), contrary to the declared description. Samples were forwarded to the CH Laboratory for further confirmation.
Allegations and Importer’s Defense
The customs authorities accused the importer of willful misdeclaration under Sections 32(1), 32(2), and 79(1) of the Customs Act, 1969. During hearings, Al-Habib Traders contested the allegations, denying any intent to evade duties. The importer argued that both AISI 200 and 300 series goods were sold at the same value by their supplier, M/s TKS International, and suggested a supplier error in dispatching the wrong series. They supported their claim with documentation showing consistent pricing across multiple consignments of AISI 300 series imported from the same supplier.
The respondents further stated that the goods in question were subject to zero percent customs duty and that any taxes were adjustable, negating any motive for duty evasion. They assured customs officials that they were awaiting written confirmation from their supplier acknowledging the mistake.
Customs Ruling
After reviewing the case, customs authorities rejected the importer’s defense due to insufficient evidence to substantiate the absence of mens rea. The charges of willful misdeclaration were upheld, and the offending goods were confiscated under clause 14 of Section 156(1) of the Customs Act. However, the importer was allowed to redeem the goods by paying a fine equal to 35% of the revised value, pending reassessment of the goods’ value based on the respondent’s evidence.
Additionally, a penalty of PKR 70,000 was imposed on the importer, while the clearing agent faced a penalty of PKR 30,000, along with a warning for future compliance. The case was concluded with these terms.
Broader Implications
Despite the contravention, Al-Habib Traders’ green channel status for expedited processing of consignments remains intact. Sources allege that two additional contraventions against the importer were settled with the recovery of duties and taxes. Critics have raised concerns over the “faceless” customs clearance system, claiming it allows for manipulation and lack of accountability. Analysts argue that the pressure on appraisers to expedite processing often results in potential revenue losses being overlooked.