KARACHI: The Appraising Intelligence Branch (AIB) of Model Customs Collectorate (MCC) Appraisement-West has eventually succeed in recovering Rs 2.3 million from the importer Standpharm in its alleged involvement in tax evasion by misusing SRO551(I)/2008 in clearance of Ibuprofen, it is learnt here.
It is pertinent to mention here that the Appraising Intelligence Branch (AIB) of the Model Customs Collectorate of Appraisement (West) has raised a demand of Rs2.3million in term of short recovery on 30 September-2014 against the importer Standpharm Pakistan (Private) Limited after re-assessing the filed GDs of the said importer.
On scrutiny of the clearance data of the “Ibuprofen” has found that the importer Standpharm Pakistan (Private) Limited imported a consignment declared to contain Ibuprofen, weighting 10 M/T from China and filed Goods Declaration bearing No KAPW-HC-48946-23-10-2013 for clearance thereof through a custom agent Marine Star Logistics under PCT heading 2916.3910 and also claimed inappropriate exemption from whole of sales tax vide serial No 11 of notification SRO 551/2008.
Since, the subject item by virtue of description is specified under PCT heading 2916.3910, chargeable to Customs Duty at 20 percent thus, chargeable to sales tax in full as the exemption from whole of sales tax under aforesaid SRO is available only to those Pharmaceutical materials which are chargeable to Custom Duty within 10 per cent.
The proportional Para of the said SRO is also re-produced in the contravention report which stated: “Raw materials for the basic manufacture of pharmaceutical active ingredients and for manufacturer of pharmaceutical products”.
The conditions and restrictions in Import Policy Order (IPO) are the import and supplies thereof provided that where such raw materials are imported then only those raw materials shall be entitled to exemption under this notification which are liable to Custom Duty not exceeding 10per cent ad-valorem, either under the First Schedule to the Customs Act, 1969 or under a notification issued under Section 19 thereof.
The Collector-MCC Appraisement-West Muhammad Saleem has appreciated the performance of AIB officials and urged them to continue their efforts in detecting such type of cases in order to save the national exchequer.
