Tag Archives: MISDECLARATION OF PCT

MISDECLARATION OF PCT, EVASION OF MILLIONS IN CUSTOM DUTY DIT files SCRA in a Chief Autos case

KARACHI: The Directorate of Intelligence & Investigations, Pakistan Customs has filed a Special Customs Reference Application (SCRA) impugning a judgment by Member Judicial (II) of Special Customs Appellate Tribunal, Karachi, Haris Enterprises, Clearing Agent for Lahore based importer Chief Autos.

The Special Customs Appellate Tribunal on 9-6-2017 passed a common order allowing the appeal by the respondent Haris Enterprises.

Khalid Rajpar advocate filing the SCRA on behalf of the applicant department raised the question of law that whether SRO 499 (I) /2009 issued under Proviso to Section 181 of the Customs Act 1969 deemed applicable where respondent importer has committed the offence of mis-declaration of description and PCT heading aimed at evading custom duty, sales tax others worth rupees 2,001,173.

It was maintained by the appellant that the respondent Chief Autos in collusion with Haris Enterprises, Clearing Agent managed to import and clear 10,600 kilograms of auto parts (engine parts) under PCT Heading 8409. 9999.

The DIT on a tip off intercepted the consignment and on examination it was found that parts were in fact Liners and Piston Sets of Hino, Isuzu and UD Nissan trucks. Besides 137 kilogram of piston ring sets of Komatsu excavator were also found.

The consignment was seized and later Additional Collector Customs (Adjudication) passing an Order in Original allowed redemption of the consignment at a rate of redemption fine 35 per cent. The adjudicating authority also imposed a penalty of rupees 200000 and 100000 upon importer and clearing agent.

The ONO was challenged before the customs appellate tribunal which ruled in favor of the respondents against which the instant SCRA was filed.

The SCRA has exposed a ring of evasion of customs duty, sales tax, income tax and others by mis-declaration of PCT Heading as well as description and likely to benefit customs of custom duty of billions of rupees evaded in import of automotive parts.