Collectors of Customs will conduct audit of the duty-free shops on quarterly basis to check any possibility of the selling of imported goods, in the open market, on fake documents. Sources told Business Recorder here on Tuesday that the Chief Collector of Customs North has issued instructions to all relevant Model Customs Collectorates for audit of the duty-free shops.
According to the Customs instructions to the field formations, in the wake of past instances of abuse of exemption, the Collectorates shall conduct quarterly audit of duty-free shops. Secondly, Collectors would develop a system of data management regarding imports and clearances made by the shops. Thirdly, the customs officials would take precautionary measures to prevent sales against fake documents, instructions of the Chief Collector of Customs North added.
In the past, the Directorate General of Post Clearance Audit (PCA) Karachi had recommended to the Board to restrict the operations of duty-free shops within the airport lounges in view of fraudulent use of fake passports by two such shops, which sold containers of consumer goods in the open market. These duty-free shops had violated customs rules/regulations to manipulate the entire system for selling huge quantity of imported goods in the open market.
The directorate had further requested the FBR to issue a new procedure to ensure that the DFCs should not operate as agents of market retailers/shopkeepers for selling of high dutiable items in the open market. It was found that the duty-free shops operated as agents for market traders importing high dutiable consumer goods such as cigarettes, bicycles, soft drinks, diapers, etc on their behalf for sale in the open market. It was also found that the fake/forged passports were used for selling the goods to market traders, instead of bona fide passengers from their city outlets as confirmed by immigration authorities, the Directorate of the PCA added.
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