The Federal Board of Revenue (FBR) on Friday announced it had unearthed a massive fraud at Karachi’s Jinnah International Airport that was facilitating the illegal removal of high-value electronic consignments without filing Goods Declarations or paying customs duties and taxes.
In a statement, the tax body said the scam was orchestrated by employees of a foreign based ground-handling company, which was also the custodian of the goods. The employees, it said, were issuing fake and forged documents to importers, allowing them to remove electronic goods worth hundreds of millions from the airport.
According to the FBR, it took prompt action to strengthen controls at the Karachi airport after the fraud was uncovered in light of credible intelligence reports. The timely intervention led to the seizure of a consignment valued at Rs. 103 million, including laptops, iPads, iPhones, MacBooks, PlayStations, and memory cards. Apart from this, two consignments were found fraudulently cleared on the basis of fake gate passes. The Collectorate of Customs Airport Karachi immediately lodged two FIRs and also arrested employees of the company involved in the case.
Investigations have since confirmed that five consignments in total were illegally removed through this fraudulent modus operandi. It said all consignment were shipped from the U.A.E. by M/s Pir Jillani General Trading LLC, Dubai and were packed in two pallets, weighing around 900–1,000 kg each. These consignment, it said, were deliberately concealed from the Customs WeBOC system, preventing goods declaration filings and enabling their clearance through fake gate passes. The total estimated value of evaded duty and taxes involved in illegal removal of the five consignments is Rs. 384 million.
Employees of the company manipulated their computerized iCargo system to conceal airway bills for issuance of fake gate passes for illegal removal of high value electronic goods. Customs investigators have also highlighted the foreign-based company’s refusal to provide CCTV footage and critical records despite repeated requests, raising serious suspicion of complicity at senior management level.
FIRs have been lodged and accused have been arrested while efforts are underway to recover the evaded amounts. Further FIRs and arrests are on the cards as FBR resolves to leave no stone unturned to recover the evaded amount.
The FBR chairman and Member Customs have emphasized that no leniency would be shown to custodians and customs functionaries who fail in their duty. This operation shows the resolve of FBR to protect national revenue and restore public trust.