Sources told Business Recorder, here on Sunday that FIRs have been registered and cases of money laundering will also be framed against the gang comprising so-called importers. The money has been siphoned-off illegally to the actual manufacturers/sellers of the cloth in India, which constitutes an offence under the Anti-Money Laundering Act, 2010.
The Directorate General, Intelligence & Investigation (Customs) will also report the matter to the State Bank of Pakistan (SBP) and establish money trail. A dedicated team of intelligence officials have got it confirmed from concerned countries that the documents such as purchase contracts and certificates of origin were false.
Experts of the agency unearthed that the gang was involved in import of greige/grey cloth from India to Dubai. The Indian cloths were cleared from Dubai Customs and after repacking, the banned item is re-shipped from Dubai to Lahore via Karachi. The false documents were presented that the cloths have been manufactured in China and shipped to Pakistan via Dubai.
Sources said that the Customs Intelligence appears to be determined to create serious deterrence against smuggling of banned Indian origin greige/grey cloth into Pakistan through various ports of the country. On the directions of its Director General Shaukat Ali, its various regional offices have seized seven containers which were imported at or cleared from various dry ports of Lahore. These containers had been imported by six notorious Lahore-based commercial importers namely (i) M/s Dastagir Traders, Lahore, (ii) M/s IC Master, Lahore, (iii) M/s Mustafa Enterprises, Lahore, (iv) M/s SBS Group of Companies, Lahore, (v) M/s Shahzad Traders, Lahore, and M/s World Fashion Textiles, Lahore. Eleven more identical containers detained by Customs Intelligence at NLC Dry Port of Lahore will be examined soon, after approval for such examination is accorded by the Chief Collector of Customs (Central), Lahore. Thus, the number of total containers presently under custody of Customs Intelligence is eighteen and customs import data emphatically suggests that, previously, this racket had unlawfully imported, and cleared, from NLC and Prem Nagar Dry Ports of Lahore, eighty eight (88) containers of banned Indian greige/grey cloth. The total number of such containers was 106 and the quantity of the banned cloth smuggled into Pakistan by the smugglers masquerading as importers was 58,457,586 metres: M/s Dastagir Traders, Lahore has imported/cleared 14 containers; M/s IC Master, Lahore has imported/cleared 43 containers; M/s Mustafa Enterprises, Lahore has imported/cleared 10 containers, M/s SBS Group of Companies Lahore has imported/cleared 01 container; M/s Shahzad Traders Lahore has imported/cleared 11 containers and; M/s World Fashion Textiles Lahore has imported/cleared 09 containers.
Investigations conducted by Customs Intelligence have led to startling revelations. The modus operandi adopted by the six importers is well-orchestrated: import the greige/grey cloth from various cities of India to Dubai through nine Dubai-based commercial entities (namely M/s Syed Kamran Trading LLC, American Silk General Trading LLC, City Mountains General Trading LLC, Imperial Arts General Trading LLC, Salwa City Trading LLC, Al-Shafiq General Trading Co LLC, Abu Senan Trading LCC, Murad Suliman Trading LLC and Al-Safura General Trading LLC); clear the cloth from Dubai Customs; do the repacking; re-ship it from Dubai to Lahore via Karachi and; secure clearance of the cloth from various dry ports of Lahore against patently false documents, mis-stating that the cloth had been manufactured in China and shipped to Pakistan via Dubai. Customs Intelligence has gathered legally sustainable evidence to prove the importers' story wrong. Overseas investigation carried out by Customs Intelligence has established that the purchase contracts and certificates of origin presented by the so-called importers are false. Bulk of the cloth was stated to have been purchased from M/s Union Textile of China, Room 2015, JYW 199, Trend Centre 29-31, Cheung Lee Street, Chaiwan, Hong Kong, through a purported commercial entity named M/s Shenzhen Unite Trade Import & Export Co Ltd, China. However, the Consul General, Embassy of Pakistan, Hong Kong, has categorically, and formally, confirmed that the aforesaid company does not exist and the telephone number stated to be the contact of the purported seller (M/s Shenzhen Unite Trade Import & Export Co Ltd, China) of the impugned cloth has been installed in some government office. The same is the case with the other so-called suppliers of the six importers - Guangzhou China Favour Star Ltd, for example. It was proved that the impugned cloth had not been imported from Hong Kong or China. This finding is further strengthened by the confirmation provided by the shipping lines to the effect that the shipments of the cloth to Pakistan had originated from Dubai, and not from China. Even more astonishing is the fact that the postal/notified business addresses (in Lahore) of the importers of the banned Indian cloth have been found to be fake on verification by Customs Intelligence.
Another important aspect of the investigation carried out by Customs Intelligence relates to money trail regarding the payment made for purchase of the disputed cloth for import to Pakistan. According to the Customs record, the cloth imported into Pakistan through 106 containers under reference had been purchased for an amount of US $6.782 million (that is, over Rs 700 million) or thereabout. If the importers' story was to be believed for a moment for the argument's sake, the aforementioned amount should have been paid to the (purported) manufacturers/sellers of the cloth in China. However, no evidence to that effect has been produced to the investigators of Customs Intelligence by the so-called importers. Clearly, that amount has been siphoned-off illegally to the actual manufacturers/sellers of the cloth in India, which constitutes an offence within the meaning of Anti-Money Laundering Act, 2010. Outcome of the investigation on this point alone will trigger serious and wide-ranging proceedings against a number of people. The investigations and actions of Customs Intelligence appear to vindicate the persistent stance of APTMA that banned Indian greige/grey cloth is being smuggled into Pakistan in huge quantities, resulting in closure of greige/grey cloth manufacturing units in Pakistan and lay-off of thousands of skilled and semi-skilled workers.
Sources said smuggling of Indian cloth has badly hurt domestic manufacturers and factories in textile sector. The ongoing anti-smuggling drive against banned Indian items, particularly cloth, would not only restore confidence of local manufacturers, but also generate employment in textile industry. The intelligence arm of the FBR will continue its investigation against the rackets involved in smuggling and mega scam would reach its logical conclusion.
Copyright Business Recorder, 2017