KARACHI: The Sindh High Court (SHC) has sought comments from Pakistan Customs on a petition by Telenor Pakistan (Pvt) Limited, seeking release of its consignment of batteries.
Petitioner Telenor Pakistan (Pvt) Limited filed the petition naming Secretary Revenue Division and Collector of Customs, Model Collectorate of Customs (WEST) as respondents.
Advocate Syed Shabeer H Shah, who represented the petitioner company, submitted that it imported a consignment of batteries for their installation in telephone exchanges. The consignment, packed in the containers with invoice and bill of lading, arrived at the port.
He submitted that the telecommunication equipment- ZTE, SHOTO, GS YUASA Brand and BSB are liable to be assessed at their transactional value in terms of Section 25(1) of the Custom Act, 1969. However, the petitioner in order to avoid any delay in clearance of the consignment paid applicable 10 percent customs duty as the consignment imported by the company falls under the Pakistan Customs Tariff (PCT) 8507.2010.
But to its dismay, he added, the customs department assessed 20 percent customs duty under HS Code 8507.2090 which is for multi-purpose batteries which cannot be used in telephone exchanges. Without prejudice, this HS Code 8507.2090 is not applicable to the brand imported by the petitioner.
He submitted that it approached the Collector of Customs, Model Collectorate of Customs (West) for release of the consignment against bank guarantee to avoid delay and save containers rent and demurrage charges and to save time and loss to the company but all efforts went in vain.
Customs authorities are still not clear about whether these batteries are to be assessed under which PCT Code even after the physical examination of the petitioner’s consignment.
He prayed to the Court to declare that denial to accept duty under PCT Heading No.8507.2010 in terms of Section 25 and the demand of additional duty and taxes is illegal, void and of no legal effect. The Court was requested to order provisional release of the consignment till the matter is decided.
