Nine cases of mis-declaration of PCT detected in which importers tried to evade duty/tax amounting to Rs 26.18 million
KARACHI: Model Customs Collectorate Appraisement-East Collector Manzoor Hussain Memon has made adjudication proceedings mandatory in the cases of mis-declaration of PCT classification, which attracts higher rate of duty under Section 32 of the Customs Act, 1969 read with SRO 499(I)/2009 dated 13-06-2009.
According to details, in terms of sub-clause(e) of Serial No 1 of SRO 499(I)/2009 dated 13-06-2009 where the ascertained PCT classification attracts higher rate of duty, redemption fine on customs value at the rate of 20 percent is prescribed. The Appraisement-East observed that the assessing officers are not applying the aforementioned legal provision strictly and are using their discretion in making cases on the misuse of PCT classification.
The aforesaid act of assessing officers is against the spirit of law; rather it is tantamount to collusion for evasion of government revenue in the head of fine and penalty, the order further stated.
It stated that to curb this illegal practice, “it is directed that, henceforth, in all such cases where an importer mis-declares PCT classification of imported goods and the ascertained PCT classification attracts higher rate of duty, the assessing officer shall prepare the contravention report without fail and would send it to the additional collector (law) for consideration.
However, in case the ascertained PCT does not attract higher rate of duty, no contravention shall be made, added the order given by Collector Manzoor Hussain Memon.
Collector Memon also warned the assessing officers in his order that any lapse in this regard shall be seriously viewed in the future and action against the delinquent official will be initiated under E&D Rules, 1973. All section in-charges have also been directed to ensure compliance with the aforesaid orders by their subordinate assessing officers.
Following the implementation of the order, a large amount is likely to be collected. The step would also help minimise the illegal practice of mis-declaration.
Meanwhile, when contacted Appraisement-East Additional Collector Muhammad Tahir to know about the impact on ground after the implantation of this new order, he said that tremendous achievement had been witnessed in only a few days.
Muhammad Tahir disclosed that as many as nine cases of mis-declaration of PCT classification had been made, in which importers attempted to evade Rs 26.18 million in terms of duty/tax.
Tahir hoped that this mandatory adjudication proceedings order would certainly add more revenue to the national exchequer.
