Mis-declaration of auto parts: Customs initiate probe against importer, clearing agent

KARACHI: The Pakistan Customs has initiated investigations against its officials, Customs agents and importer in a case of mis-declaration on the import of auto parts, official sources said on Wednesday.

The Model Customs Collectorate (MCC) Appraisement, East, Karachi, initiated the inquiry against 17 goods declarations cleared by its officials where importers and clearing agents had declared lower value and evaded duty and taxes of around Rs16 million.

The collectorate conducted the inquiry against importer, Iftikhar Auto Stores, and clearing agent, Pakistan Agencies, who filed 17 goods declarations of consignments carrying brake lining – a major component of motor vehicles.

According to official documents, the importer and a clearing agent declared the total value of consignments of 17 goods declarations at $64,079, whereas they paid duty and taxes worth Rs5.24 million. However, after scrutiny of the goods declarations, the Customs authorities found the actual value was $142,092 and the actual value of duty and taxes to be paid was Rs16.30 million, showing an evasion of Rs11.06 million in duty and taxes.

The goods were mis-declared and the importer paid the Customs duty at the rate of 20 per cent, instead of the correct heading of Pakistan Customs Tariff (PCT), which attracted Customs duty at 30 per cent. Besides, the value of auto parts was declared at $0.6/kg as against the actual value of $1.6/kg.

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After getting the information of mis-declaration, the Customs authorities conducted an inquiry of past consignments of the importer cleared from the collectorate.

The collectorate said it was clear that the accused importer, Iftikhar Auto Store, and clearing agent Pakistan Agencies with the active connivance of each other and of their accomplices committed mis-declaration of classification and value.

The collectorate also initiated an inquiry against the Customs officials involved in clearing of such consignments that caused huge monetary loss to the national exchequer.

The MCC Appraisement East, Karachi, lodged an FIR against the importer and clearing agent for in-depth investigation in the matter.

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