KARACHI: The Directorate of Post Clearance Audit (PCA) Karachi has served two contravention reports on M/s Premier Cable (Private) Limited for making short-payment/evasion of duty/taxes to the tune of around Rs 41 million.
According to sources, the PCA during scrutiny of import data related to imports/clearances of ‘copper rods/strips in coils/rolls 8.00 mm’ correctly classifiable under PCT heading 7408.1100 chargeable to customs duty @ 10%, observed that certain importers are clearing these goods by misdeclaring the same under PCT heading 7407.1020 chargeable to customs duty @ 5%, in order to evade duty/taxes.
M/s Premier Cables (Pvt) Ltd. imported 32 consignments of ‘copper rods B 49-10 8.0 mm in coils/rolls’ and cleared the same from Customs Appraisement East and West through their clearing agent M/s MACSONS ONB-B by willfully and knowingly mis-declaring the goods under PCT heading 7407.1020 chargeable to customs duty @ 5 %. However, copper rods in coils/rolls are correctly classifiable under PCT heading 7408.1100 in terms of Rule 1 of General Rules of Interpretation as well as Chapter Note 1(d & f) to Chapter 74 of Pakistan Customs Tariff and are chargeable to customs duty @10% sales tax.
According to sources, it is further observed from the images attached with examination reports in the system that the mode of packing of impugned goods is continuous cast copper wire rod in shape of coils/rolls having 8 mm diameter. The PCT heading 7408.1100 is specified for copper wire of which the maximum cross sectional dimension exceeds 6mm.
In this regard, the PCA Karachi has forwarded contravention reports to the Collector, Collectorate of Customs Adjudication-II and Collector Adjudication-I, for initiating adjudication proceedings in the case.
