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ISLAMABAD: The Collectorate of Customs Exports Port Muhammad Bin Qasim (PMBQ) has booked two companies of Export Processing Zone (EPZ), Karachi for fraudulent activities.

According to details on September, 30, 2021 information was received in the Collectorate of Customs Exports Port Muhammad Bin Qasim, Karachi that tipping paper imported by a unit in the Export Processing Zone, Karachi namely M/s General Trading Company has been pilfered to tariff area without payment of duties and taxes. Accordingly, data was scrutinised which revealed that Tipping paper has recently been imported by M/s General Tobacco Company vide Goods Declarations No. PQZI-EP-4622-28-08-2021 and No. PQZI- EP-6186-15-09-2021 filed through Customs Agent M/s Rahbar Agency.

The premises of M/s General Tobacco Company were immediately visited where no stocks of recently imported tipping paper were found. The manager of the importing unit stated that their User ID has been misused and that they have not imported any tipping paper.

On the following day i-e on October 01, 2021, the information was further cultivated to learn that the imported tipping paper was being transported and stored at another KEPZ unit namely M/s Sitara Trading from where it was being smuggled into tariff area in smaller consignments.

FY2020-21: Collectorate of Customs (Enforcement) surpasses revenue target

The search was made and twenty-eight pallets carrying 2997 bobbins of Tipping paper were found in the premises of M/s Sitara Trading out of 78 pallets carrying 8432 bobbins imported in two GDS.

According to PMBQ, it transpired that 50 pallets carrying 5435 bobbins of Tipping paper were already pilfered to tariff area. The import data of M/s Sitara Trading was also scrutinised which revealed that unit has been inactive since a long time and have illegally stored Tipping paper and further pilfered to tariff area without payment of duties and taxes. Hence, the goods and unit were seized and sealed under Section 168 of the Customs Act,1969.

In the light of facts, PMBQ established that the investors M/s General Tobacco Company, Plot No. 08 & 21, C-V, EPZ, Karachi and M/s. Sitara Trading, Plot # E-9, Sector C-VIII, EPZ, Karachi in connivance with Customs Agent M/s Rahbar Agency have smuggled imported Tipping paper to tariff area causing huge loss to national Exchequer from its legitimate revenue amounting to Rs25,755,445/- Total value of offending goods is Rs 26,078,297/-.

According to PMBQ, a FIR of the incident has been lodged before the Court of Customs , Excise and Taxation Judge, Karachi and further investigation is underway.

Copyright Business Recorder, 2021

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