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Misuse of SRO: AIB establishes Rs2.3m demand against M/s Standpharm

Misuse of SRO: AIB establishes Rs2.3m demand against M/s Standpharm

KARACHI: The Appraising Intelligence Branch (AIB) of the Model Customs Collectorate of Appraisement (West) has generated a demand of Rs2.3 million in term of short recovery against the importer M/s Standpharm Pakistan (Pvt) Ltd in its alleged involvement in misuse of SRO 551 on clearance of “Ibuprofen”, it was learnt.

The sources in AIB-MCC Appraisement (West) informed Customs Today that the demand of short recovery had been raised against the importer M/s Standpharm (Pvt) Ltd after re-assessing the filed Goods Declaration (GD) of the importer.

It is pertinent to mention here that the AIB/R&D of MCC-Appraisement (West) on scrutiny of the data of clearance of the “Ibuprofen” found that the importer M/s Standpharm Pakistan (Pvt) Ltd imported a consignment declared to contain Ibuprofen, weighting 10 M/T from China and filed Goods Declaration bearing No KAPW-HC-48946-23-10-2013 for clearance thereof through a custom agent M/s Marine Star Logistics under PCT heading 2916.3910 and also claimed inappropriate exemption from whole of sales tax vide serial No.11 of notification SRO 551/2008.

Since, the subject item by virtue of description is specified under PCT heading 2916.3910, chargeable to Customs Duty at the rate of 20per cent thus, chargeable to sales tax in full as the exemption from whole of sales tax under aforesaid SRO is available only to those Pharmaceutical materials which are chargeable to the Customs Duty within 10per cent.

The proportional para of the said SRO is also re-produced in the contravention report which stated: “Raw materials for the basic manufacture of pharmaceutical active ingredients and for manufacturer of pharmaceutical products”.

The conditions and restrictions in Import Policy Order (IPO) are the import and supplies thereof provided that where such raw materials are imported then only those raw materials shall be entitled to exemption under this notification which are liable to Customs Duty not exceeding 10 per cent ad-valorem, either under the First Schedule to the Customs Act, 1969 or under a notification issued under Section 19 thereof.