It is learnt that Director General, Customs Intelligence, Shaukat Ali has reported to the Chairman, FBR that he had received an information to the effect that standard/prime quality paper products were being smuggled from Karachi Export Processing Zone (KEPZ) to tariff area under the garb of "recovered and upgraded items from waste/ scrap". Accordingly, four (04) trucks bearing Reg Nos LS-3273, JT-0898, K-2169 and JU-2980, loaded with 22 reels of various types of paper, on 13.09.2018, cleared by the Customs staff posted in KEPZ were intercepted by Customs Intelligence, Karachi near Mehran Highway. The goods were being imported into the tariff area by IAS Trading, Karachi and United International Industries, KEPZ, vide GD No. KEPI-HC-1607 dated 20.08.2018, under the vague description of "Recovered, upgraded colour paper/sheets in various cut to sizes imported from rejects/waste/stock lot material". The Customs staff of MCC Exports (Port Qasim) had confirmed the above-reproduced declaration during examination and had finalized the assessment under single value of $0.410/kg - total being $19,800. The fifth truck mentioned on the GD could not be intercepted along with the other four on the night of 13.09.2018, despite hectic efforts. Detailed examination of the detained goods resulted into the recovery of standard/new reels of Offset Paper, Carbonless Paper and Craft (Bleach) Paper instead of the aforesaid declaration.
Preliminary investigations by the Customs Intelligence has revealed that the fifth truck carrying the remaining goods was off loaded at a private godown situated at Plot No.25-A, Bhutto Nagar, Landhi Industrial Area, Karachi. Accordingly, the godown was searched in terms of Section 162 of the Customs Act, 1969, which led to the recovery of huge quantities of various standard/ new/ prime quality products/ items (such as multiple types coated and uncoated paper, BOPP and PVC film, Plastic Moulding Compound, Diapers etc.). Resultantly, MCC (Exports) Port Muhammad Bin Qasim, the importer and the godown owner were asked to provide copies of all GDs filed for import of goods from KEPZ to tariff area as well as evidence of their entry into the godown. Furthermore, KEPZ Authority was requested to provide import/ export record/ profile of United International Industries (exporter of goods in KEPZ) and the list of machinery installed in the unit. All the letters and subsequent reminders remained largely un-responded except one reply dated 17.09.2018 received from IAS Trading, Karachi (importer in tariff area) whereunder copies of random eighty four (84) GDs filed during the period 2013-18 in relation to the recovered goods were provided.
Sources said the scrutiny of the above-referred GDs by the Customs Intelligence has revealed that vague declaration of paper & plastic goods supplied to tariff area after being purportedly "upgraded and recovered from waste/ scrap/ job lot/ stock lot items" were made by two units situated in the KEPZ, Examination, valuation and assessment of these GDs by the concerned staff of MCC (Exports), Port Qasim is highly dubious. The importers of these goods in tariff area are four units, iof Karachi. All the units (in KEPZ and tariff area) are allegedly owned by one family which also owns the godown from where huge quantity of standard/ new/ prime quality goods was recovered. None of the forty nine (49) items found in the godown are mentioned as such on the said GDs nor the assessment is in line with the valuation rulings/assessment criteria for similar imported goods. Furthermore, no record has been provided vis-à-vis the movement of goods into and from the godown to connect the recovered goods with the eighty four (84) GDs provided by the importer. The two units situated in KEPZ, United International Industries and Modern Plastic Industries, show monthly electricity consumption of less than US$100/- and US$ 1000/-, respectively, meaning thereby that no meaningful processing had been conducted on the goods being supplied by them into the tariff area. Further, as per Ministry of Industries and Production, Islamabad, D O letter No. 1(13)/2000-INV.V dated 05.09.2000, the items mentioned in the eighty four (84) GDs cannot be imported into the tariff area in the same state.
The goods loaded on the four (04) trucks mentioned above and the standard/prime quality goods dumped in the godown have been seized under the relevant provisions of the Customs Act, 1969. Cumulative value of the seized goods works out to Rs 189.72 million.
FIR of the case has been lodged by the Customs Intelligence, Karachi. Further, investigation is being carried out and the involvement of Customs officers/officials in unlawful clearance is seriously suspected and prosecution proceedings are being contemplated against all those found involved in the illegality/fraud, the sources added.