KARACHI: The Directorate of Post Clearance Audit (PCA) Karachi has served two contravention reports on M/s GM Cables and Pipes (Private) Limited for making short payment/evasion of duty/taxes to the tune of around Rs 7 million.
According to sources, the PCA during scrutiny of import data observed that M/s GM Cables and Pipes imported two consignments of ‘copper rods EC Grade 8.0 mm in rolls’ and cleared them from Customs Appraisement East and West by willfully and knowingly mis-declaring the goods under PCT Heading 7407.1020 chargeable to customs duty at 5 percent sales tax at 17 percent and income tax at 5 percent.
However, copper rods in coils are correctly classifiable under PCT heading 7408.1100 in terms of Rule 1 of General Rules of Interpretation as well as chapter note 1(d&f) to Chapter 74 of Pakistan Customs Tariff and are chargeable to customs duty @ 10 percent sales tax @ 17 percent and income tax @5 percent
According to sources, it is further observed from the images attached with examination reports in the System that the mode of packing of impugned goods is continuous cast copper wire rod in shape of coils/rolls having 8 mm diameter. The PCT heading 7408.1100 is specified for copper wire of which the maximum cross sectional dimension exceeds 6mm.
Thus, there is strong evidence that, by way of mis-declaration of classification, M/s G M Cables & Pipes (Pvt.) Ltd. have made a deliberate and willful attempt to evade around Rs 7 million.
In this regard, the contravention report has been forwarded to the Collector, Collectorate of Customs Adjudication-I and II, for initiating adjudication proceedings in the case.
