A case alleging that Maldives Customs Services’ upper management jointly attempted to cheat on import duty when importing a car

Upon investigation, it was found that Ministry of Finance and Treasury published an announcement, opening a bid for supplying and delivering 15 cars of Mazda 3. Subsequently, the Ministry assigned the winning bidder to supply 15 cars of Mazda 3 for USD 261,500.00 (two hundred sixty-one thousand, five hundred dollars).

As per the pro forma invoice sent by a car distributing Company based in Ceylon to the winning bidder on 8 March 2017, the price of 15 units of Mazda 3 amounts to USD 261,500.00 (two hundred sixty-one thousand, five hundred dollars). Meanwhile, an invoice sent on 22 June 2017 indicates that the price of 30 units of Mazda 3 totals to 117,100.00 (one hundred seventeen thousand, one hundred dollars). ACC’s investigation reveals that the winning bidder made a payment of USD 261,500.00 (two hundred sixty-one thousand, five hundred dollars) to the forenamed Ceylon’s Company on 22 June 2017.

However, as Maldives Customs Services doubted the accuracy of the sales price declared in the forenamed invoice, Customs checked the actual price of the product and raised the declared sales price to USD 277,768.20 (two hundred seventy-seven thousand, seven hundred sixty-eight dollars and twenty cents) as per the given authority under clause 154 of Maldives Customs Services general regulation.

While Customs raised the invoice price to USD 277,768.20 (two hundred seventy- seven thousand, seven hundred sixty-eight dollars and twenty cents), it is evident that the payment made by the bid winner was for the price stated in the pro forma invoice, which is USD 261,500.00 (two hundred sixty-one thousand, five hundred dollars). Hence, it shows that the bid winner has paid MVR 16,268.20 (sixteen thousand, two hundred sixty-eight Rufiyaa and 20 laari) less than the price set by Maldives Customs Service.

Moreover, ACC’s investigation revealed that the import duty levied on 15 units of Mazda 3 car equals to MVR 8,966,368.18 (eight million, nine hundred sixty-six thousand, three hundred sixty-eight rufiyaa and eighteen laari).  This amount was calculated based on the price raised by Maldives Customs Services’ through its “Price Valuation Advice”. Also, it is evident that the winning bidder has made the full payment for this import duty.

As the winning bidder has made all the outstanding payment to Maldives Customs Service and Maldives Ports Limited, the cars imported through Maldives Ports Limited by the winning bidder has been handed over to them.