KARACHI, June 3: Customs authorities have recovered duty and taxes amounting to Rs78.2 million. The duty was evaded by commercial importers as well as local assemblers on import of auto parts.

Sources told Dawn on Tuesday that the Directorate General Intelligence & Investigations-FBR Regional office, Karachi, identified a large number of cases of non-levy of due duty/taxes on auto parts imported by various assemblers, vendors and commercial importers of auto parts in violation of SRO-693(I)/2006 dated July 1, 2006.Under the SRO, localised parts/components of motorcycle, auto rickshaw, motor cars and trucks of g.v.w. (gross vehicle weight) not exceeding 5 ton, are importable at additional custom duty rate of 50 per cent.

Localized parts/components of agri tractors, road tractors & other tractors, buses/truks and trucks of g.v.w. exceeding 5 tons, are importable at additional custom duty rate of 35 per cent.

The sources said the goods were cleared through the Collectorate of Customs, Port Qasim and Air Freight Unit of Preventive Collectorate, without levy of additional customs duty in terms of the aforesaid SRO.

The pointation was made on scrutiny of import data procured from Pakistan Revenue Automation (Pvt.) Ltd. (PRAL) and evaded amount of Rs95,400,000 were quantified and pointed out to the Collectorate of Customs, Port Qasim and Preventive Collectorate, Karachi, for recovery.

The sources said the Model Collectorate of Customs, Port Qasim, Karachi took up the matter with the local assemblers and consequently an amount of Rs76,780,000 as evaded duty had been recovered only from one leading manufacturer.

The record of other local assemblers was being scrutinised to arrive at correct position. It had been now proved that the local assemblers and vendors have not been paying additional duty in terms of the SRO, the sources said.

Similarly, an amount of Rs1,350,000 has been recovered by the Customs Preventive Collectorate as additional duty in cases pointed out by the Directorate.

In rest of the cases, orders-in-original for recovery of balance amount have been issued by the Collectorate, once the legal proceedings are finalised.

Moreover, this detection and subsequent inquiry into the matter has revealed that the relevant SRO was not uploaded in the system of PRAL, which facilitated this evasion.

The sources said necessary correction had now been made in the system, which would now hopefully result in ensuring payment of due duty and taxes in future imports of auto parts.