KARACHI: Additional Collector Adjudication Syed Mahmood Hasan has penalized an importer and clearing agent for mis-declaring the  classification of imported goods to evade duty/taxes through availing inadmissible concessions.

According to details of the case, Directorate General of Customs Intelligence and Investigation received information that some unscrupulous importers are indulged in importing and clearance of Hot Fix Tape classifiable under HS Code 3919.1090 through mis-declaration of PCT heading as 5603.1100 to claim reduced rate of duty / taxes under Pak-China FTA issued vide SRO 659(1)2007.

In order to verify the veracity of the information the relevant import data of the commodity wrongly cleared under PCT heading 5603.1100 was scrutinized which revealed that M/s Areeba New World imported 02 consignments of aforesaid commodity cleared from MCC Appraisement (East).

Perusal of the said GDs revealed that M/s. Areeba New World in collusion with their clearing agent M/s Sharafat Hussain Khan & Co. imported Hot Fix Tape valuing Rs 5.966 million which was got cleared by mis-declaration of HS code 5603.1100 and unlawful claim, availing reduced Rate of Customs Duty under Pak-China FTA. Incidence of evaded duty taxes has been worked out to Rs1.784 million.

After detail deliberation of the case, Customs Adjudication found the charges of mis-declaration established and ordered the importer M/s Areeba New World to deposit the evaded amount along with a penalty of Rs0.5 million. Clearing agent M/s Sharafat Hussain Khan & Co was imposed a penalty of Rs25,000.