KARACHI: The Directorate of Post Clearance, Karachi has detected evasion of taxes/duty worth Rs 744,662 by M/s Royal Polytex Industries on import of calcium carbonate through mis-declaration.
According to details, during scrutiny of import data of coated calcium carbonate PCT heading 3824.9094 and 3824.9099 it has been observed that certain grades of coated/treated calcium carbonate falling under PCT heading 3824.9099 chargeable to custom duty at 10 percent have been cleared by the importers by mis-declaring them under PCT heading 3824.9099 chargeable to custom duty at 5 percent to evade duty/taxes.
M/s Royal Polytex Industries imported 3 consignments of coated calcium carbonate Grade EF-80 through different clearance collectorates and cleared the same through their clearing agent M/s WW Business Associates by misdeclaring the goods under PCT heading 3824.9094 chargeable to custom duty at 5 percent instead of 3824.9099 chargeable to custom duty at 10 percent to evade duty/taxes.
It is pertinent to mention here that coated or treated calcium carbonate cleared under PCT heading 3824.9099 and 3824.9099 is being imported mainly in two forms 1 in the form of fine white powder with its surface coated or treated with fatty substances or was. In this form, a thin coating is made on particles of calcium carbonate by wax or other fatty substance due to which its substantive characteristics/composition and use is not changed.
The other form is white granules consisting essentially of calcium carbonate dispersed in polyethylene plastic medium having percentage of calcium carbonate at 80 percent and percent of plastic medium at 20 percent.
In this form, according to the available literature as well as lab reports, the composition and characteristics of the substance are changed resulting into changing of its use as well. This fact has also been endorsed by Customs Chemical Testing Lab as well as assessment group in a number of cases where it has been recommended that coated/treated calcium carbonate in granular form with 20 percent coating of plastic medium may be classified under PCT heading 3824.9099 instead of 3824.9099. Few of the grade falling in such category are EF-75, EF-80, CAE-61, HC-161, F-8, PE-380 etc.
However, it has been observed that certain importers, willfully and knowingly instead of mentioning exact PCT heading of such grade have got these cleared under heading 3824.9094 using green channel system in order to evade duty/taxes. Therefore, M/s Royal Polytex Industries Pvt Ltd are required to pay the evaded duty/taxes within at the earliest.
