KARACHI: The Directorate General of Post Clearance Audit (PCA) has detected tax evasion amounting to Rs 17.5 million by M/s CM Pak Limited on import of telecommunication equipment and computer server machine.
Sources said that during the scrutiny of import data of cellular infrastructure equipment for telecom sector falling under PCT Heading 8517.6990, it has been observed that certain mobile communication companies imported equipment by mis-declaring the same under PCT Heading 8471.5000 and 8471.4990 and allegedly evaded duty/taxes.
The sources said M/s Pakistan Mobile Communication Ltd imported cellular infrastructure equipments for telecom sector, networking and computer server machine with standard accessories by allegedly mis-declaring them under the PCT Heading 8471.5000.
According to Pakistan Customs Tariff (Vol-I), the description of goods given under the main heading 8471 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, the description of goods is 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 sources added.
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, signalling and wireless sharing protocols/ interfaces. The other importers have also imported similar goods under PCT Heading 8517.6990.
So, the department found that M/s Pakistan Mobile Company Ltd with the active connivance of its clearing agent M/s Saspak Cargo Pvt Ltd evaded/short an amount of Rs 8.3 million.
In this regard, the PCA has forwarded a contravention report to the Customs Adjudication-I collector, for initiating adjudication proceeding in the case.
