KARACHI: Customs Adjudication-I Collector Suraiya Ahmed Butt has served a show cause notice upon M/s CM Pak Limited (Zong) for allegedly evading duty/taxes amounting to Rs 17.5 million on import of telecommunication equipment and computer server machine.
Official sources told Customs Today that M/s CM Pak Ltd imported telecommunication equipment and computer server machines by mis-declaring the PCT Heading 8471.5000 and 8471.4190.
According to Pakistan Customs Tariff (Vol-I), the description of goods given under the main heading 84.71 read as: “Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included,” they informed.
In order to classify the goods more specifically, under single dash heading 8471.5000, there is need to look into the description of goods given under this heading which read as: “processing units other than those of sub-heading 8471.49 whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units.”
However, it is clear from the declaration made by the importers that the goods are cellular infrastructure equipment for telecom sector which, in no way, fall under PCT Heading 8471.5000 and are vividly and correctly classifiable under PCT heading 8517.6990, they added.
The catalogue uploaded by the importer in the system also revealed that the equipment is meant for use in GPRS/ UMTS solutions and supports a number of networking, routing, signaling and wireless sharing protocols/ interfaces. The other importers have also imported similar goods under PCT heading 8517.6990.
Thus by way of mis-declaration of classification M/s CM Pak Ltd allegedly with the active connivance of clearing agent M/s Saspak Cargo Pvt Ltd evaded/short-payment of an amount of Rs 17.5 million.
In order to listen to the point of view of the importer, the adjudication has issued a show-cause notice asking them to justify their position.
