KARACHI: The Collectorate of Customs Adjudication-I has issued Order-in Original (ONOs) against various packaging companies including M/s Packages Pvt Limited, M/s Merit Packages and M/s Saima Packages Limited in their alleged involvement in tax evasion amounting to Rs21.177 millions in import of Water Based Varnishes having PCT Heading 3209.1010 and Customs Duty @20per cent in garb of importing Acrylic Polymer having PCT Heading 3906.9090 and Customs Duty @10per cent.
According to details, the authorities concerned of Customs Intelligence and Investigation-FBR Karachi through a credible source came to know that some unscrupulous elements are involved in clearance of Water Based Varnishes in the garb of Acrylic Polymer and damaging the national exchequer at some extent.
Acting upon the said information, the authorities concerned of Customs Intelligence and Investigation at initial stage detained some consignments of different packages companies including M/s Packages Pvt Limited, M/s Merit Packages and M/s Saima Packages and after scrutinizing the import data of said packages companies it was found that those importers were involved in tax evasion of around Rs 20 million in clearance of Water Based Varnishes in the garb of Acrylic Polymer.
Subsequently, the Directorate General of Customs Intelligence and Investigation-FBR Karachi made seizure and contravention reports against the importers and sent those to the adjudicating authorities for further legal proceedings.
The Adjudicating authorities on the request of the importers have sent the case into the Classification Committee for determining the nature of the imported consignments, as if the declared product is Acrylic Polymer in Primary Form or not.
The Committee concluded in the light of deliberations, test reports, literature, explanatory notes, HS Code and others that the imported consignments attract classification under sub-heading 3209.1010 which is reflecting the import of Water Based Varnishes having 20per cent of Customs Duty.
Later on, the Collectorate of Customs Adjudication-I issued ONO against M/s Packaging Pvt Limited in its alleged involvement of duty/taxes amounting to Rs12.963 million. The Adjudication authorities have also imposed a penalty of Rs50,000 on the importer.
The adjudication authority has also issued an ONO against M/s Merit Packages in its alleged involvement of evading duty/taxes amount to Rs1.55 million. The authority has also imposed fine of Rs477833 (25per cent of the total import value) and a penalty of Rs25000.
The Collectorate of Customs Adjudication-I has also issued ONO against the importer M/s Saima Packages in its alleged involvement of tax evasion amounting to Rs6.661 million and also imposed penalty of Rs50000 on the said importer.
It is pertinent to mention here that the Model Customs Collectorate-MCC of Appraisement (East) in the month of August, last year had also detected the same cases of mis-declaration in which the importers had tried to import Water Based Varnishes having Customs Duty 20per cent in the garb of Acrylic Polymer in primary form.