Cattle feed cover for soybean import exposed

Importer tried to avoid Rs35m in duty and taxes through mis-declaration of Rs30m consignment.

KARACHI:

The Pakistan Customs has foiled an attempt to import soybean oil and meal under the guise of cattle feed.

Sources told The Express Tribune that the importing company was trying to steal Rs35 million in the form of duty and taxes by not declaring the soybean products. Following the catch, the Customs Appraisal SAPT Collectorate has registered two separate cases against the owner of the company. In the filed cases, the company is accused of importing soybean products from Mozambique and Nigeria, while the goods were declared as 'residues of grain for cattle feed'.

Under the mis-declaration, the owner of the company and the importer tried to circumvent the mandatory documentation requirements and undervalue the goods, which may have resulted into huge revenue losses to the government.

In the first case, involving imports from Mozambique, the company allegedly evaded about Rs19.9 million in duty and taxes while the total value of the consignment is estimated at Rs30 million.

Soybean flour worth Rs6.9 million was imported from Nigeria, on which Rs24.4 million was stolen to evade duty and taxes.

Sources said that the customs authorities had received confirmed information about the importers that some importers were causing huge losses to the national exchequer by importing soybean products through mis-declaration. Following the information an investigation was carried out by the Customs Collectorate, who found discrepancies between the declaration of imported goods submitted to Pakistan Customs and the data of the exporting countries.

During the investigation, the concerned shipping line also informed the authorities about the actual imported products and their prices from the export declarations and container tracking information of the said consignments.

According to the cases filed by Pakistan Customs, the accused not only misrepresented the description and price of the goods but also failed to provide the necessary documents required under the Import Policy Executive Order 2022, including phytosanitary and other food certificates as well as the safety compliance documentation.

Sources said that the said offences involved violation of various sections of the Customs Act, 1969, including Imports and Exports (Control) Act, 1950, Sales Tax Act, 1990 and Income Tax Ordinance, 2001.

Officials said that the owner of the importing company guilty of mis-declaration has been arrested and the elements and facilitators involved in the irregularity are being determined.