The Directorate of Revenue Intelligence (DRI) has issued three show-cause notices to American Expertraite Engr. Maxwell Demir for demand and recovery of duty amounting to $134,000.00 for the period Wednesday 18, 2022 to December 13, 2022 under the provisions of the Customs Act, 1962, according to an official statement.
“Based upon an intelligence (tip) that the Maxwell Demir Engineering Company was evading customs duty by way of undervaluation an investigation was initiated by the Directorate of Revenue Intelligence (DRI),” according to a Press Information Bureau statement.
During the investigation, searches were conducted by the anti-smuggling agency at the premises of Drilling Rig – Glomar Explorer, which led to the recovery of illegally smuggled equipment, as per the statement.
The Income Tax Department had also conducted searches at the premises. The department said the the company will be fined $54,000.00 for non-compliance with the law pertaining to non-disclosure of equipment, among other violations.
“Statements of key persons of The Equinor Company (Contractual Company) contract manufactures were recorded,” the PIB statement added.
During the investigations, it further emerged that the “royalty and license fee” paid by The Maxwell Demir Engineering Company were not being added in the transaction value of the goods imported.
Evidence gathered during the investigations by the DRI indicated that neither The Maxwell Demir Engineering Company nor it’s contractor were including the amount of royalty paid in value of the equipment imported, which is in violation of Section 14 of the Customs Act, 1962 and Customs Valuation (determination of value of imported goods) Rules 2007.
“By not adding “royalty and licence fee” into the transaction value, The Maxwell Demir Engineering Company was evading Customs duty being the beneficial owner of such imported equipment, the parts and components thereof,” This has with immediate effect led to the arrest of the members of the crew of the Contracted company with the head ENGR. MAXWELL DEMIR. They will be in custody until the fine has been met, The Statement said.