Clearance of dangerous goods through fraudulent way: SMS Chemical Industries, Hub Industrial Estate booked

ISLAMABAD: The Collectorate of Customs Appraisement South Asia Pakistan Terminal, Karachi, has booked SMS Chemical Industries, Hub Industrial Estate, Lasbela for clearance of dangerous goods through fraudulent way.

According to the FIR, SMS Chemical Industries (Private) Limited imported a consignment declared to consist of “Isopropyl alcohol 98.5%, quantity 44,880 kg (56,760 litre) from South Korea.

On arrival of the goods the importer electronically filed Goods Declaration (GD) on August 16, 2023 through their authorized clearing agent Amjad Trading Corporation, seeking clearance of the aforesaid imported goods under PCT heading 2905.1220 at the total invoice value of D$ 49,368.00.

The import of Isopropyl alcohol 98.5% having flash point below 76 degree Fahrenheit attracts the provision of the of sections (3) and (30) of the “Petroleum Act, 1934 read with Petroleum Rules 1937” and is subject to provision of Dangerous Petroleum License (DPL) to be issued by the Department of Explosives, Government of Pakistan.

The importer scanned the import documents including the “Dangerous Petroleum Licence (DPL) purported to be issued by the Department of Explosives, Government of Pakistan in its name allowing bulk import and storage of 30,000 litres of “Isopropyl Alcohol” and sought release of the imported product in wake of the aforementioned DPL electronically furnished by them along with the GD.

The reference GD was processed in yellow channel of the WeBOC system. During scrutiny, it was revealed that DPL No. QDA/1033/P-“L” showing validity up to December 31, 2023 scanned and attached in the documents folder by the importer allows import/storage of 30,000 litres Isopropyl Alcohol, whereas, a total quantity of 44880kgs (56,760ltr) was imported in the instant GD which appeared to be in excess of the allowed quantity. Accordingly, a contravention case was framed out and forwarded to the Adjudicating Authority for cognizance on import of excess quantity.

During adjudication proceedings in order to confirm the authenticity of DPL provided by the importer/uploaded in the document folder was e-mailed to the Deputy Director Explosives, Quetta Balochistan. In response, Deputy Director Explosives not only informed that the submitted DPL was fake but also recommended to take strict action against the delinquents.

In order to get reconfirmation from the Explosives Department, Quetta, through postal mode, a letter of September 16, 2023 followed reminder of September 22, 2023 was issued to the Deputy Director, Department of Explosives, Quetta requesting him to verify the genuineness of the DPL.

Consequently, Deputy Director, Department of Explosives, Quetta on September 20, 2023 categorically confirmed that “no licence has been granted by the Department in the name of M/s. SMS Chemical Industries & Distillery (Private) Limited. The licence No QDA/1033/P-“L” is bogus/fake.

The named accused importer also presented a letter to Customs Authorities, addressed to the Director General Explosives seeking enhancement of IPA quota in DPL bearing signature and stamp of the Department of Explosives Regional Office, Karachi.

The Regional Incharge, Department of Explosives, Regional office Karachi vide his email of October 10, 2023 at 3.08 pm confirmed that DOE Regional Office, receiving of May 05, 2023 endorsed on covering letter of the accused importer is fake and not genuine, as it has never been received in Regional office, Karachi.

In view of the email/letter of the Department of Explosive, the previous clearances of the importer through Collectorate were scrutinized. It has been revealed that the named has got cleared a consignment of 19.2 MT of Nitrocellulose under PCT heading 3912.2020 vide GD No. KAPS-HC-6024 on July 13, 2023.

The import of Nitrocellulose is also subject to provisions of the Petroleum Act, 1934 section (3) and (30) read with Petroleum Rules 1937 read with part 7 of the Import Policy Order, 2022. Scrutiny further revealed that the above said consignment also got released in wake of the DPL No. QDA/1033/P-"L” which had been found fake and bogus.

According to Collectorate of Customs Appraisement South Asia Pakistan Terminal, Karachi, it is evidently established that the accused proprietor/partners/directors of SMS Chemical Industries Pvt Limited, Hub Industrial Trading Estate, District Lasbela, Baluchistan with active connivance of their clearing agent accused Proprietor of Amjad Trading Corporation, (CHAL No. 2070) and their facilitator (to be ascertained during further investigations) have submitted fake and forged Dangerous Petroleum Licence No.

QDA/1033/P-“L” for clearance of huge quantity of imported ISO Propyl Alcohol 44,840 kg (56,760 Ltr) and Nitrocellulose 19,200 kg import of which is subject to provision of Dangerous Petroleum License within the meanings of the Section (3) and (30) of the Petroleum Act, 1934 read with Petroleum Rules 1937.

The above named accused importer also presented a letter to Customs Authorities, addressed to the Director General Explosives seeking enhancement of IPA quota in DPL bearing fake and bogus signature and stamp of the Department of Explosives Regional Office, Karachi.

The Collectorate is of the view that this deliberate act(s) of accused proprietor/partners of SMS Chemical Industries Pvt Limited,, Hub Industrial Trading Estate, District Lasbela, Baluchistan, and their clearing agent accused Amjad Yakub Proprietor of Amjad Trading Corporation, M-1, Mez Floor, T-Centre, Ali Akbar Street, Near Achi, Qabar Jodia Bazar, Karachi constitutes an offence within the meanings of the Section 16, 32A and 209 of the Customs Act, 1969 read with para 7 of SRO545(I)/2022 (Import Policy Order 2022), further read with the Section (3) and (30) of the Petroleum Act, 1934, and Petroleum Rules, 1937 and notifications issued thereunder.

The offence is punishable under clauses (9) and (14A) of the Section 156(1) of the Customs Act, 1969.

FIR has accordingly lodged for in-depth investigation in the matter and to unearth the actual culprits and their facilitator(s), if any, involved in deliberate act to clear the Dangerous Goods through submission of fake NOC i.e. Dangerous Petroleum Licence, after approval from the competent authority.

Copyright Business Recorder, 2023