KARACHI: The Customs Directorate General of Post Clearance Audit (PCA), Karachi, has detected taxes/duties evasion of Rs 22.3 million allegedly by M/s CM Pak Limited (Zong) on import of DNS server and telecommunication equipment.
According to sources, during the scrutiny of the import data of cellular infrastructure equipment for telecom sector falling under PCT heading 8517.6990, it has been observed that certain mobile communication companies have imported such equipment by mis-declaring the same under PCT heading 8471.4900 and 8471.4190. Thus they have made a deliberate and willful attempt to evade duty/taxes by way of mis-declaration of classification of these items.
The sources informed that M/s CM Pak Ltd have imported DNS Server and telecommunication equipment SIU V4 platform configuration consisting of SUI Oam Board by mis-declaring them in the PCT heading 8471.5000.
According to Pakistan Customs Tariff (Vol-I), the description of goods given under the main heading 84.71 read as: “
“Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included”.
In order to classify the goods more specifically, under single dash heading 8471.5000, we need to look into the description of goods given under this heading which read as: “processing units other than those of sub-heading 8471.49 whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units.”
However, it is clear from the declaration made by the importers that the goods are Cellular Infrastructure Equipment for Telecom sector which, in no way, fall under PCT heading 8471.5000 and are vividly and correctly classifiable under PCT heading 8517.6990.
The catalogue uploaded by the importer in the system also reveals that the equipment is meant for use in GPRS/ UMTS solutions and supports a number of networking, routing. signaling and wireless sharing protocols/ interfaces. The other importers have also imported similar goods under PCT heading 8517.6990.
Thus. by way of mis-declaration of classification M/s CMPak Ltd with the active connivance of their Clearing Agents M/s Saspak Cargo Pvt Ltd has evaded/short an amount of Rs 22.333 million.
In this regard, the PCA Directorate has forwarded a contravention report to the Collector, Collectorate of Customs Adjudication-I for initiating adjudication proceeding in the case.
