KARACHI: Directorate of Customs Intelligence and Investigations (I&I) Director Irfan Javed detected evasion of duty and taxes Rs1,83,83,539/-(Rs18.38 million) by M/s Spark World Private Limited East Wharf, Karachi.
According to the details, Director Irfan Javed received actionable intelligence. He directed to block a consignment of M/s Spark World Private Limited, Lahore manifested at East Wharf, Karachi vide IGM No. 303 dated 10.7.2019 containing 1800 LED TVs in 10 containers. The importer had tried to hoodwink the customs authorities by filing two separate Goods Declarations against the same consignment originating from the same seller in Vietnam destined for the same buyer in Pakistan and manifested through same IGM at the same wharf.
Resorting to technical modus operandi of fraud, the importer stuffed 1800 LED panels in three (3) containers and the small parts like cables, speakers, packing boxes, remote controls etc of the same quantity in seven containers. Each of the 7 containers (40 inches) carried about 1.5 ton weight which is an abnormal phenomenon. The consignment should have been clubbed together and classified as LED TVs in SKD condition as the importer has to just cobble together the parts with a negligible working and sell the same as LED Tvs.
Appraisement East Karachi cleared one consignment of LED panels classifying it under PCT 8529-9090 instead of classifying the whole consignment of the 10 (10) containers under PCT 8528-7213 i.e. LED TV in SKD (semi-knocked down) condition. By doing this, the Valuation Ruling No. 1090/2017 was averted resulting in evasion of duty and taxes to the tune of Rs1.83,83,539.
On cognizance by the Directorate-General, the evaded amount of duty and taxes Rs1,83,83,239/-) has been recovered by the regional office, I&I Customs, Karachi with initiation of appropriate legal action.
Further probe has led to sector analysis which has revealed that many other importers are also involved in this fraud and have evaded huge amount of duty and taxes.
Further probe has led to sector analysis which has revealed that many other importers are also involved in this fraud and have evaded huge amount of duty taxes. So far an approximate evasion of Rs150 million has been worked out against import of M/s Rock Mars Industries (Private) Ltd, Karachi regional office. Regional office, Karachi has been directed to initiate legal action for recovery of evaded amount of duty taxes.
Apart from above, data of commercial importers is also being retrieved to determine the same phenomenon so that the level playing field for the whole business sector aimed at trade facilitation without compromising on state exchequer can be ensured.
It is worth mentioning that initial run through import data indicates astonishing disparity between assessments at Lahore and Karachi for the similar consignments, while Appraisement Lahore has been treating bifurcated consignments of LED panels and parts as LED TVs in SKD conditions and applying Valuation Ruling No. 1089/2017 dated 17.3.2017 under PCT heading 8528.7213 whereas the Appraisement Collectorates at Karachi are extending illegal benefits to importers of LED TVs by classifying these under PCT heading 8529.9090 simply as ‘parts’ and not as ‘LED TV in SKD/CKD’ condition to avoid the above referred valuation ruling. This illegal attraction had actually promoted M/s Spark World to shift its import from Lahore to Karachi.