KARACHI: Directorate of Intelligence and Investigation (I&I) Karachi has imposed a penalty of Rs1.0 million on M/s Unilever Pakistan. The company was found to be mis-declaring the description and classification of an imported product, BELSIL UL 630 M5, which is a preparation used in cosmetics and personal care products.
Sources told Customs Today that the case was detected on the basis of information received from Director Customs I&I Karachi Engineer Habib to Additional Director Afzal Wattoo. The information revealed that M/s Unilever Pakistan was declaring and clearing BELSIL UL 630 M5 under PCT Code 3910.0000 as primary silicon instead of correct PCT Code 3824.9999 being a preparation. This resulted in a lower rate of duty and taxes applicable on the imported product.
A team led by Deputy Director Abeer Javed and comprising Principal Appraiser Muhammad Qadeer, Appraising Officers Ilyas Gichki, Tauseef Ahmed and Faiz Ahmed placed hold on two consignments imported by M/s Unilever Pakistan at gate-out stage for further scrutiny. The staff examined the consignments and drew representative samples in the presence of the surveyor. Meanwhile, on the request of M/s Unilever Pakistan, the consignment was released against securing differential amount of duty/taxes under PCT 3402.3100.
After due process, Customs I&I Karachi established that the importer M/s Unilever in connivance with clearing agents M/s Celerity Supply Chain, M/s EL FRICO, M/s Agility Logistics, M/s Momentum Logistics, M/s Security Transport was involved in evasion of duty and taxes by way of mis-declaration of description and classification of imported goods. The total amount of revenue evaded by the importer was calculated to be Rs160.95 million on 57 Goods Declarations (GDs).
The case was forwarded to Customs Adjudication for legal action. After due deliberations and hearing all sides, Customs Adjudication found the charges of mis-declaration to be well established and ordered M/s Unilever Pakistan to pay the evaded duty/taxes of Rs160.95 million along with surcharge. A penalty of Rs1.0 million was also imposed on the importer. A penalty of Rs50,000 each was also imposed on the clearing agents involved in the case.
