KARACHI: Largest supplier of copper telecom cables and optical fiber cables to telecom and power sector of Pakistan, Premier Cables (Pvt) Limited has been found involved in massive duties/taxes’ evasion by Federal Board of Revenue (FBR), Daily Times has learnt.
In this regard, FBR’s wing, the Directorate of Post Clearance Audit (PCA) Karachi has served two contravention reports on Premier Cable Private Limited for making short-payment/evasion of duty/taxes to the tune of around Rs 41 million, sources said.
Meanwhile, the PCA Karachi has forwarded contravention reports to the Collectorate of Customs Adjudication-II and Collector Adjudication-I for initiating adjudication proceedings in the case.
According to details, PCA, during scrutiny of import data related to imports/clearances of ‘copper rods/strips in coils/rolls 8.00 mm’ correctly classifiable under PCT heading 7408.1100 chargeable to customs duty at 10%, observed that certain importers are clearing these goods by misdeclaring the same under PCT heading 7407.1020 chargeable to customs duty at 5%, in order to evade duty/taxes.
Premier Cables imported 32 consignments of ‘copper rods B 49-10 8.0 mm in coils/rolls’ and cleared the same from MCC Appraisement East and West through their clearing agent, Macsons ONB-B, by willfully and knowingly misdeclaring the goods under PCT heading 7407.1020 chargeable to CD at 5 %. However, copper rods in coils/rolls are correctly classifiable under PCT heading 7408.1100 in terms of rule 1 of General Rules of Interpretation as well as chapter number 1(d & f) to chapter 74 of Pakistan Customs Tariff and are chargeable to CD at 10 % sales tax, chapter notes 1(d) and (f) defines “Bars & Rods” and “Wires”, sources added.
According to sources, it is further observed from the images attached with examination reports in the system that the mode of packing of impugned goods is continuous cast copper wire rod in shape of coils/rolls having 8 mm diameter. The PCT heading 7408.1100 is specified for copper wire of which the maximum cross sectional dimension exceeds 6 mm.
It is pertinent to mention that Premier Cables (Pvt) Limited has sound clientele list. Pakistan Telecommunication Company Limited (PTCL), National Telecommunication Corporation (NTC), SUPARCO, K-Electric, WAPDA, Engro, Pakistan International Airlines (PIA), Oil and Gas Development Company Limited (OGDCL), Mobilink and Wateen are main customers of the company among other major clients.
Premier Cables (Pvt) Limited is the only approved exporter of Pakistan for Etisalat, United Arab Emirates (UAE) and Saudi Telecom Corporation, Saudi Arabia and also exporting OFC and copper telecom cables to many GCCE and African Countries since 1968.