KARACHI: The Directorate of Post Clearance Audit (PCA) has detected tax evasion to the tune of Rs 452,080 by M/s Stream Trading International by under-invoicing. The audit observation has been issued under Section 26 and 32 of the Customs Act, 1969.
According to the details, on scrutiny/audit of import data it has been found that M/s Stream Trading imported “A1-34Q-34S Blender SMTHR13 240V QB7D 2.2 QT J2 SL EU and A1-34Q-34S Blender SMTHR13 Xpress 240V EU” under PCT heading 8509.8000 through Model Customs Collectorate Preventive, Karachi at a unit value of $97.0 per piece from United States.
It is evident from the history of the importer that a case of under valuation of the identical item from the same supplier and origin i.e. “Blendtec A Division of K Tec USA” has been found and adjudicated vide Order-in-Original (ONO) No. 133222 and 02102013 on the basis of invoice found in the container at the time of examination, showing unit value at the rate of $718.48 per piece and the goods were adjudicated, assessed and cleared by the importer on the found value. The difference of declared and found value is to the extent of approx 640 percent, when freight is added in the free on board (FOB) value found from the container.
The import by M/s Stream Trading International Karachi, vide above mentioned GD was also made from the same supplier and from the same origin, therefore, it is also under-invoiced in the same way. M/s Stream Trading International, Karachi were required to pay custom duty and other taxes at the ascertained unit value of $718.48 per piece considering under invoicing to the extent of 640 percent. This has resulted in short levy of Rs 212,911 in wake of custom duty, Rs 156,380 as sales tax, Rs 27,596 as additional sales tax and Rs 55,193 as income tax. Total short levy of taxes is at Rs 452,080. The importers are directed to deposit the short levied amount in the national exchequer within 10 days with intimation to this office.
In case, M/s Stream Trading International, Karachi, are of the opinion that the above finding is incorrect or that the short paid amount has been erroneously calculated or it has already been deposited, it is requested to provide a self-explanatory written reply with viable documentary evidences and complete set of import documents within 10 days from the issuance of this Audit Observation.
