Customs Intelligence files FIR against seven for under invoicing in networking equipment imports


under invoicing

By Shahzad Paracha

ISLAMABAD: Customs Intelligence has lodged a First Information Report (FIR) against seven individuals for alleged under invoicing, submitting fake and forged documents, and filing GDs without EIF, declaring lower values on the import of networking equipment.

Documents state that the Directorate of Intelligence and Investigation Customs Karachi has filed an FIR against M/s Junisco for under invoicing “networking equipment,” involving the circumvention of EIF by submitting fake and forged documents, declaring low values for imported goods, and fraudulently evading payable duty/taxes.

Importer M/s Junisco filed two GDs, both declaring a gross undervaluation of equipment compared to the market-based value. Consequently, both GDs were blocked at the gate for further scrutiny.

Documents reveal that although the importer has shifted its office, two employees, Ghulam Sabir Ghauri and Zeeshan Ahmad, were available on the premises. They provided the actual airway bill, invoice, and packing list for the held consignments.

This proves the active involvement of Ghulam Sabir Ghauri and Zeeshan Ahmad in the scam, as they possessed actual invoices while uploading/providing fake invoices to Customs. Their involvement is further corroborated by evidence on retrieved invoices.

The imported EX3400 48-PORT Ethernet Switch Product # EX3400-48P was declared at a value of US$125, whereas the actual value, as per the retrieved invoice, is US$2445. The MP, 2X MIC Module Part Number: SRX5K, declared at US$268, has an actual value of US$26,850, and the JUNGKOOK Router Module Part #: JNPIOK-RE declared at US$199 has an actual value of US$10,000.

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Documents state that the export invoices furnished by the shed operator reflect that the value of the imported products is significantly greater than the declared value/assessed value.

This undervaluation by the importer has resulted in the evasion of duties and taxes amounting to Rs3.5 million in seized consignments.

It is pertinent to mention that no EIF is attached to both GDs, and the importer circumvented the mandatory requirement of EIF by declaring a low value supported by fake and forged documents.

Another modus operandi of the importer is that when the HC is declaring the actual value and submitting actual documents (for example, in GDs No KPAF-IIC-355-03-)7-2020, KPAF-I-IC-5179-04-08-2020, KPAF-11C-4619-29-07-2020, etc.), they are claiming inadmissible exemption under the special classification provision of PCT code 9916 to circumvent EIF.

This misdeclaration of value and under invoicing in previous GDs has resulted in evasion of Rs138 million.

The total evasion, including seized consignments, amounts to Rs141 million, and $1,971,341 have been illegally transferred out of Pakistan.

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