KARACHI: The Pakistan Customs and M/s Lucky Cement Limited both have moved Federal Tax Ombudsman (FTO) in order to present their view points in a conflicted matter regarding import of shredded tyres.
Lucky Cement imported huge quantity consignments of shredded tyres for its industrial needs through green channel while availing Duty/Taxes Remission on Export (DTRE) after making furnished goods. The Input Output Co-efficient Organisation (IOCO) of Pakistan Customs was of the view that the Cement was using the imported shredded (use-tyres) as raw-material while in the Import Policy Order-2013; it was stated clear that the shredded tyres are only used as “fuel” and not as raw-material. However, according to the IOCO reports, Lucky Cement is using shredded tyres as raw-material.
“The M/s Lucky Cement Limited is violating the Import Policy Order-2013, as it is importing shredded tyres as fuel, but using those tyres as raw-material, which is against the PCT Code 4004.00.20 and 4004.00.90,” the IOCO officer added. The IOCO-FBR has sent recommendations to the relevant Collectorates i.e. MCC-Appraisement (West) and MCC-Port Muhammad Bin Qasim in order to raise recovery demands against M/s Lucky Cement Limited. Subsequently, the MCC-Port Muhammad Bin Qasim (Exports) has re-checked the export data of M/s Lucky Cement Limited and found that the importer violated the procedural rules of Pakistan Customs.
Meanwhile, the Model Customs Collectorate-MCC Peshawar found that the M/s Lucky Cement violated the Import Policy in importing the shredded tyres and sent recommendations to IOCO for further check. Lucky Cement then moved FTO against the charges levelled by Pakistan Customs authorities on it.
