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Adjudication-II issues ONO against M/s Hinah Impex on mis-declaration

KARACHI: The Collectorate of Customs Adjudication-II has issued Order-in-Original (ONO) against the importer M/s Hinah Impex in case of mis-declaration on import of wedding material having total cost of $ 45,120.

The importer has attempted to evade the revenue amounting to Rs 1,420,591 while the goods valued to the tune of Rs 4,524,456. A penalty of Rs 300,000 is imposed on the importer under clause (14) and 14A of the Section 156(1) of the Customs Act, 1969.

The importer M/s Hinah Impex through its clearing agent namely M/s Hasnain Sons (CHAL-2256) had electronically filed Goods Declaration vide GD No. KAPE-HC-98570-05052014 for the import of wedding material at total declared invoice value of $ 3,330.

Pakistan Customs authorities in order to check as to whether the importer had correctly paid the legitimate amount of duties and taxes, the under reference Goods Declaration was selected for scrutiny in terms of Section 80 of Customs Act, 1969.

Scrutiny of the Goods Declaration in the light of examination report revealed that the importer had mis-declared in terms of value and origin of the goods. On physical examination of the goods, an original invoice was found from inside of the container of $ 45,120 with the difference of $ 41,790. In addition, the importer had also declared the origin of the goods as United Arab Emirates (UAE) and on the physical examination, the goods were found as Taiwanese.

The importer had, therefore, contravened the Customs Act, 1969; Sales Tax Act, 1990 and Income Tax, 2001 under Sections 79(1), 32(1), 32(2) and 32(A) under Section 33 and 148. The importer was also punishable under clause 14, 14(A) and 45 of Section 156(1) and clause (C) of the Section 33 and 148.

The Additional Collector of the Collectorate of Customs Adjudication-II, Muhammad Sami ul Haq in his judgment stated that “I am convinced that the charges levelled in the show-cause notice stand established.

Accordingly, the goods are confiscated under clauses 14, 14(A) and 45 of Section 156(1) of the Customs Act, 1969 for the violation of the provisions of Sections 32(1), 32(2), 32(A) and 79(1) ibid. However, an option is given to the importer to redeem the goods under Section 181 of the Customs Act, 1969 on payment of a fine equal to 35 per cent of the value of the goods which is calculated at Rs 1,583,560 (ascertained value of the goods Rs 4,524,456), as prescribed under S no.1(d) of the Table to SRO 499(1)/2009, in addition to levy able duty and taxes thereon.

Adjudication Collectorate Customs Collectorate of Adjudication-II Customs duty Customs News Customs Today mis-declaration news Pakistan Customs Revenue Sales Tax tax evasion 2014-06-17
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