KARACHI: Customs Adjudication-II Collector Chaudhary Muhammad Javaid has directed the M/s Fauzia Aftab to pay duty/taxes to the tune of Rs 5.381 million, which it evaded on the import of titanium dioxide through mis-declaration.
The collector imposed a fine of Rs 500,000 while issuing Order-in-Original (ONO) No 137/2015-16 against the company.
According to the details, the Directorate of Post Clearance Audit (PCA) found that M/s Fauzia Aftab imported consignments of titanium dioxide by mis-declaring HS Code.
In the ONO, Collector Chaudhary Muhammad Javaid stated that chemical analysis report produced by the respondent clearly indicates that the goods are not amorphous and there is crystal growth as a definite particle size exists. Further the classification opinion of World Customs Organization clearly states that titanium dioxide of anatase type, not surface treated, falls under HS Code 3206.11.
In the light of the afore-stated facts, it is established that the respondent has mis-declared the classification of the titanium dioxide to get the undue benefits and; therefore, the charges levelled in the show cause notice stand established.
The subject goods should have been cleared under HS Code 3206.1100 instead of 2823.0010. Therefore, in exercise of the powers conferred upon me under section 32(1) & 32(3) (A) of the Customs Act, 1969, the respondent namely M/s Fauzia Aftab are directed to deposit the duty/taxes amounting to Rs 5,381,944 into the government treasury.
A penalty of Rs 500,000 is also imposed on the respondent namely M/s Fauzia Aftab in terms of clause 14 of Section 156(1) of the Customs Act, 1969.
Moreover, the department is also directed to scrutinize the data of the past clearance of titanium dioxide for determination of the fact that whether some evasion of leviable duties and taxes has been effected through mis-declaration or mis-classification and take the appropriate measures as provided under law along with streamlining the process of future clearances of the subject goods under correct HS Code through a SOP devised by the department for the assessing officers to avoid incorrect classifications.
