LAHORE: Post Clarence Audit (PCA) has detected duty and tax evasion by Huawai Technologies Pakistan (Pvt) Limited by way of mis-classification of servers for telecommunication use as servers for computers.
Sources told Customs Today that it was revealed during scrutiny of import data that the importer got clearance for import of servers for telecommunication use by mis-classifying under PCT heading 8471.5000 as server for computers, paying customs duty at the rate of one percent and two percent instead of classifying under correct PCT heading 8517-6290 (other machines for the transmission or reception of voice, images or other data, including switching and routing apparatus) attracting customs duty @ 20 percent.
It was informed that the company has deposited short payment worth Rs39,287, customs duty Rs918,369, sales tax Rs46, 942. Additional sales tax Rs18, 368 and income tax Rs55, 568.
The PCA has asked the company to pay the evaded amount of duty and taxes within 10 days of receipt of the letter. The PCA said that that in case the company don not agree with the audit observation, the company has to provide a written clarification along with the supporting documents as well as all related import documents including copies of goods and declaration, commercial / pro forma invoices, LCs packing lists, contracts, purchase orders, literature on or before August 9, 2016.
The PCA also told the company representatives may appear in person or through accredited representatives to rebut the audit observation on the date in the chamber of deputy director at the Customs Houses.
