Magnitude of the evasions runs to Rs 1,873 million over a span of just 18 months. Sources said that acting upon the specific information of its Director General Shaukat Ali, Customs Intelligence Quetta and Gwadar have detected evasion of duty/taxes of Rs 1873.32 million in clearance of ceramic and porcelain tiles from MCC Quetta and Gwadar.
Some unscrupulous importers and clearing agents at MCC Quetta and Gwadar in connivance with the Customs staff, have been assessing/clearing ceramic and porcelain tiles, imported from Iran, on the basis of values lower than the ones nominated in Valuation Ruling No 874/2016 dated 22.06.2016 issued by the Directorate General of Customs (valuation), Karachi, in terms of sub-section (1) of section 25-A of the Customs Act, 1969. The import data of the clearances of such tiles for the period from 01.07.2016 to 15.12.2017 was retrieved by the Customs Intelligence and scrutiny thereof revealed that 115 importers (98 importers at MCC Quetta and 17 importers at MCC Gwadar) had imported consignments of tiles from Iran and got the same cleared through different clearing agents without correct application of Valuation Ruling No 874/2016 dated 22.06.2016.
Broad categories of the discrepancies unearthed by the Customs Intelligence include: (i) Incorrect application of customs values as contained in the valuation ruling vis-à-vis sizes of tiles. The values have been assessed on impugned tiles on lower slabs instead of applicable slabs in respect of area(s) of tile(s). (ii) Instead of applying the 5% discount on import of tiles imported through land routes as notified vide Valuation Ruling 874/2016 dated 22.06.2016 issued by Director, Directorate General of Customs Valuation, Customs House, Karachi, 11% discount was accorded to the tiles imported from Iran by the land routes into various parts of the province of Balochistan on the strength of MCC Quetta's Letter No 01-VAL(LVC)/2010-15/27028 dated 25.04.2017. The above-referred letter of MCC Quetta is tantamount to amending the Valuation Ruling dated 22.06.2016 by the Collector MCC Quetta without jurisdiction because the power to revise any valuation ruling issued by the Director, Directorate General of Customs Valuation, Customs House, Karachi, rests with the Director General of Customs (Valuation), Karachi in terms of section 25(3) of the Customs Act, 1969. (iii) Non-deposit of leviable regulatory duty at MCC Quetta. Customs Intelligence has accordingly issued 115 contravention reports under the relevant provisions of the Customs Act, 1969 and further investigation is in progress, the sources added.