ISLAMABAD: Directorate of Customs Intelligence and Investigation detected an alleged tax evasion case against M/s Techaccess Pakistan (Private) Limited, Islamabad, under declared value of Rs 85.8 million.
Deputy Director Afzaal Wattoo Told Customs Today that information was received through the directorate of Customs Intelligence and Investigation that M/s Techaccess Pakistan imported RH1288V3 server with standard accessories from China and cleared the same through RPAF and caused colossal loss to the national exchequer by means of under invoicing and concealment of actual price.
The deputy director said that in order to determine veracity of information, GD No RPAF 17647 was blocked at gate out stage, the importer was requested to provide import and clearance record, including copies of contract, price list etc.
Wattoo said that on scrutiny of the recorded transcript that the value declared by the importer is $ 2,144 per unit, on the other hand price fixed by the supplier M/S Huawei International Co Ltd Hong Kong for general body of consumers is $ 5,253 per unit.
The importer claim Afzaal said that 63% discount was given by the supplier which between supplier and Teckaccess Pakistan Ltd Islamabad, this discounted price have no relevance with the Custom duties or other import taxes, it is relevant to indicate that the importer did not upload packing list with the GD as required under WeBOC, the invoice provided by the importer is sketchy.
Deputy director pointed out that by virtue of the features of the software value of the software should have been reflected in the invoice but same was concealed which also tantamount to misdeclaration.
The deputy director directorate of Intelligence and investigation said that as agreement per see its purpose and surrounding circumstances unambiguously constitute restrictions on the disposition and use of the imported goods, the foreign exporter , despite the goods being sold, continued to hold interest in the same through VAP.
Therefore, the discounted price is not acceptable as transaction value for the purpose of customs assessment in terms of proviso (a) and (b) to section 25 of act, the discount of 63% by no stretch of imagination, can be deemed as normal in terms of paragraph 2(1) of the interpretive note to article VII.
The importer goods were required to be assessed to Duty/taxes at actual value of software, thereby total value of the consignment comes to Rs 21.3 million instead of Rs 8.5 million and actual taxes payable thereon comes to Rs 6.6 instead of Rs 2.6 million differential taxes to the tune of Rs 4 million.
M/S Techaccess Pakistan (Pvt) Ltd, in collusion with their foreign exporter M/S Huawei International Pvt Ltd Hong Kong imported and cleared the subject consignment., they rather made true declaration in GDs nor provided complete and correct particulars of the imported goods.
M/S Pakistan Baggage Corporation Islamabad Customs clearing agents facilitated evasion of duty taxes through mis declaration of value, they knowing and will fully concealed actual value of the imported goods including software in the garb of discount and thereby evaded customs duty and taxes to the tune of Rs 4,005,585 as against differential value of Rs 12, 787,529.
He said that the case has been forward to Collector Adjudication of MCC Islamabad for further action against the M/s Techaccess Pakistan (Pvt) Ltd, M/s Pakistan Baggage Corporation Islamabad Customs clearing agents and M/S Huawei International Pvt Ltd Hong Kong.
