KARACHI: Under supervision of Director Irfan Javed, the Directorate of Customs Intelligence and Investigation (I&I) registered three FIRs against M/s A-One Steel and M/s New Aijaz Engineering for submitting bogus/fake documents. Irfan Javed has been actively pursuing such high-profile cases to stop tax evasion, and for this purpose he has directed his staff members to remain vigilant against smuggling attempts. According to details, Director Irfan Javed received information that certain unscrupulous importers are misusing concessionary regime available under the law. Furthermore, it was informed that after availing the concessionary benefits, the impugned goods (steel coils) were being illegitimately sold in the open market, thereby not only misusing the concessionary regimes but also incurring revenue loss to the national exchequer. The I&I squad conducted a raid on 13.9.2019 and detained a number of steel coils pertaining to various importers/companies including M/s Arain Brothers Goods Transport Co, M/s Kissan Goods Transport Co and M/s M.A. Chaudhary Goods Transport Co on Truck Stand Hawksbay Road, Maripur Road. It is pertinent to mention here that the standard rate of customs duty on electro galvanized steel sheets of secondary and prime quality is chargeable @11%, whereas, under concessionary regime customs duty @1% is chargeable on second and prime quality. However, as per SRO-655II)/2006 dated 22.6.2006, the Engineering Development Board (EDB) determines the input output ratios of items to be manufactured and total annual requirement of raw material. Furthermore, the relevant import documents by the manufacturer-cum-importer are furnished to the EBD within forty-five days of the ending year as per Form-C against which the quota is allowed to the importer. Overall DG I&I detained total number of 560 coils at three different goods transport companies. Out of these 560 coils, 291 coils have been delivered to their legitimate importers/claimants after verification. Three FIRs have been lodged against M/s A-One Steel and M/s New Aijaz Engineering relating to a total of impugned 192 coils. The anticipated revenue loss in these cases stood at Rs88,275,034/- involving duty/taxes to the tune of Rs59,880,049/. However, 77 coils are pending verification of documents valuing Rs35,401,966, involving duty/taxes to the tune of Rs24,039,351/-. During the course of investigation, few importers/claimants of the goods approached the Directorate for release of detained goods. The importers were directed to submit all the import documents including GDs, invoices, packing lists, BLs, Mill Test, certificates, LCs etc. relevant to detained goods. Documents submitted by the importers/claimants vis-à-vis retrieved from WeBOC system were scrutinized, compared and reconciled. Physical verification and reconciliation was also done. The importers submitted relevant GDs along with import documents like commercial invoice, Bill of Lading (BL), packing list, contract, mill test certificate (MTC) and photographs of detained coils, etc in support of their claims. In case of M/s Arain Brothers Goods Transport Co, 163 coils were detained out of which 137 coils have been released after verification, whereas 26 coils are pending due to verification of documents. In case of M/s Kissan Goods Transport Co, 175 coils were detained out of which 63 coils have been released after verification. However, an FIR has been lodged against M/s A-One Steel for submitting bogus documents of 96 galvanized steel coils of secondary quality. Verification of 16 coils is in process. In case of M/s M.A. Chaudhary Goods Transport Co, 222 coils were detained out of which 91 coils have been delivered after verification. Two FIRs have been lodged; one against M/s A-One Steel and other against M/s New Aijaz Engineering for submitting bogus documents of galvanized steel coils secondary quality (22 & 72 coils respectively. Verification of documents in case of 35 coils is in process. Further investigations are underway and may include other unscrupulous elements, thereby expanding the scope of evasion of duty and taxes.
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