[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Customs Intelligence has lodged a First Information Report (FIR) against the proprietor of the prominent food enterprise, M/s Food Links International, and their clearing agent, M/s Danish International Karachi. The accusation pertains to their alleged involvement in under-invoicing concerning the importation of ‘Vegetable Oil and its Products.’
According to Propakistani sources, the Directorate of Intelligence and Investigation Customs Karachi has initiated an FIR against Shahid Huda and Muhammad Manaf, the owners of M/s Food Links International. They stand accused of causing financial losses to the government by submitting counterfeit and forged invoices, declaring values 59 percent lower than the actual imported consignments.
It has been alleged that, in collaboration with clearing agents, importers were causing revenue losses to the government through various means, including under-invoicing and exploiting exemptions as manufacturers.
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The importer is accused of significantly undervaluing the imported “Vegetable Oil and its Products,” with reported values substantially lower than those provided by the Pakistan Vanaspati Manufacturers Association. Additionally, it is claimed that the importer, in collusion with their clearing agent, submitted fake and forged invoices at the import stage, showing lower values than the actual invoices issued by M/s PT Smart Tbk Indonesia.
Investigations have revealed that the importer, in active collaboration with the clearing agent, submitted fake and forged invoices in the Weboc system, indicating values lower by 59.1 percent than the actual values. This resulted in the alleged evasion of government duty and taxes amounting to Rs. 64.11 million.
Furthermore, it is asserted that M/s Food Links International, despite not being a manufacturer, sold its imported goods in the local market instead of utilizing them for in-house consumption. This allegedly led to the improper claim of inadmissible exemptions of value-added sales tax, which is typically available to importer-cum-manufacturers using the imported raw material for in-house consumption.
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The importer claimed an inadmissible exemption of value-added sales tax at a zero percent rate, which is ordinarily levied at 3 percent on commercial imports. This concession is purportedly reserved for importers cum manufacturers using raw materials and intermediate goods for in-house consumption to produce finished goods.
Customs Intelligence reportedly visited the importer’s claimed manufacturing premises, revealing that the declared manufacturing unit was, in fact, a residential apartment for the past four years.
As a result, the importer is accused of evading additional sales tax and incidental taxes amounting to Rs. 44.9 million on 79 Goods Declarations (GDs). Additionally, inadmissible exemptions of Regulatory Duty (RD) on four consignments, which are supposedly only available to registered manufacturers in the confectionery industry, resulted in the evasion of duty and taxes totaling Rs. 7.7 million.
The document concludes by stating that the importer had allegedly evaded duties and taxes worth Rs. 275 million in previously cleared under-invoiced consignments, currently under investigation, with the collectorate recovering more fake invoices through the Pakistan Embassy in Indonesia.[/vc_column_text][/vc_column][/vc_row]
