Latest news with #PakistanCustoms
Business Recorder
22-05-2025
- Business
- Business Recorder
Pakistan Customs detects import fraud at AHICT, KICT
KARACHI: Pakistan Customs has detected tax fraud involving mis-declaration of high-value electronic goods and machinery in two separate cases at Al-Hamd International Container Terminal (AHICT) and Karachi International Container Terminal (KICT). According to the details, the Collectorate of Customs, Appraisement, West has registered two separate FIRs for high-value import frauds through mis-declaration of goods. The first fraud was reported at Al-Hamd International Container Terminal, where customs officials discovered severe discrepancies between the declared items and actual contents during examination. 'The accused attempted to evade approximately Rs. 74 million in taxes and duties through falsified documentation,' the documents said. 'The mis-declared goods, valued at Rs. 213 million, included concealed high-value electronics and switched items.' The investigation revealed the importer had submitted manipulated invoices and bills of lading through the WeBOC system. In another case, the accused company allegedly attempted to pass off advanced computerized injection moulding machines as older, less valuable equipment by affixing fake identification plates. Customs officials conducting a re-examination at Karachi International Container Terminal discovered undeclared equipment, including vertical colour mixers and hoppers. The scheme attempted to evade Rs. 2 million in duties on goods valued at Rs. 15.23 million. Multiple individuals have been implicated, including company directors, clearing agents, KICT, and AHICT staff. The investigation remains ongoing with further arrests expected as authorities work to identify all involved parties. Copyright Business Recorder, 2025
Business Recorder
07-05-2025
- Business
- Business Recorder
RRS implementation: FBR facing potential legal challenges
KARACHI: The Federal Board of Revenue (FBR) is facing significant internal backlash and potential legal challenges over the newly implemented Reward & Rating System (RRS), which was introduced as a replacement for the existing Performance Evaluation Report (PER) system. The officers from both Pakistan Customs and Inland Revenue Services have expressed strong resentment against what they described as a 'discriminatory system designed to gratify blue-eyed officers,' according to sources familiar with the matter. The controversy has escalated further when an advocate of the Supreme Court emailed a formal complaint to the Finance minister, FBR chairman, and other high-ranking officials, labelling the rewards as 'illegal donation of taxpayer's money' and a potential 'cognizable offence under Section 9 of the National Accountability Ordinance 1999.' FBR revises procedure for monetary reward payment The RRS, which was implemented for the period of July-December 2024, was initially presented as an initiative to objectively assess and uplift the performance of civil servants working in the FBR. However, sources claimed that the new system is 'inherently flawed, manipulative, and discriminatory.' A key concern raised by officers is that many with 'decent repute' and 'impeccable careers' were either downgraded or not considered for rewards despite performing professionally and protecting the interests of the national exchequer, sources said. One officer, in a letter addressed to the FBR chairman, expressed deep regret about participating in the multi-rater integrity and performance management feedback scheme. The officer claimed to have been directed to rate more than 45 colleagues, many of whom were 'complete strangers.' 'I have inadvertently contributed to unfair discrimination against several officers, under a forced categorization scheme, which was never my intention,' the officer stated in his letter. The discontent has reached such levels that some officers are now declining the financial rewards they have been granted. Business Recorder has obtained a copy of a letter from a customs officer, who formally declined a Category 'B' award that would have provided three additional salaries. 'As per the categorization framework, a Category 'B' rating implies a degree of inefficiency and questions an officer's integrity – a characterization I categorically reject,' the letter said. 'Throughout my service, I have upheld the highest standards of integrity, professionalism, and dedication, and I find it deeply inappropriate and disturbing to be placed in a category that does not reflect my conduct or performance.' The officer further criticized the assessment mechanism, noting that it 'heavily relied on evaluations by officers – seniors and peers – who may have had little to no direct working relationship with the individuals they are rating.' The letter concluded: 'Any reward system must be grounded in transparency, impartiality, and a well-informed understanding of an officer's actual performance and professional conduct. A system lacking these foundational principles risks compromising both credibility and morale.' Meanwhile, the formal complaint by an advocate of the Supreme Court described the system as a 'daylight robbery on public money.' According to the complaint, the reward structure is based on peer rating for integrity and quality of output for a six-month period, where each officer evaluates peers and is evaluated by 45 other officers. The complaint stated: 'The reward distribution is substantial, with Grade 'A' officers reportedly receiving four months' worth of salary for each month of the evaluation period, totalling 24 salaries for six months. Grade 'B' officers receive 18 salaries, Grade 'C' officers 12 salaries, and Grade 'D' officers 6 salaries, while Grade 'E' officers receive nothing. The complaint also included a sample case where a Chief Collector of Customs in Peshawar allegedly received Rs 4.7 million in addition to regular salary. Meanwhile, sources pointed out fundamental issues with the current RRS structure, arguing that the system primarily revolves around peer assessment, which they said failed to incorporate multilayered factors related to training and professional development. The manual intervention through an 'anomaly committee' is said to severely affect objectivity, allowing 'personal likes and dislikes' to influence decisions, they added. The sources recommended that a team of well-reputed professionals, headed by the Finance minister, should be constituted to conduct a system audit and investigate the role of the anomaly committee in ensuring impartiality during manual interventions. However, the legal challenges raised by the Supreme Court advocate questioned the very authority of the FBR to implement such a system, citing the section 20 of the FBR Act as requiring approval from the policy board for establishing performance standards and criteria for rewards. According to the complaint, this approval was never obtained, rendering the entire reward distribution illegal. Further allegations include irregularities in the constitution of the 'Board in Council' that approved the FBR Transformation Plan 2024, claiming that not all members were appointed by the federal government as required by law. The complaint has also requested the Chairman of the National Accountability Bureau (NAB) to initiate proceedings against the FBR chairman and board members for causing loss to the public exchequer, demanding that the Accountant General of Pakistan Revenue (AGPR) immediately stop disbursement of rewards and initiate recovery proceedings against officers who have already received payments. The complaint has also sought transparency by requesting the FBR to publish the list of officers graded A, B, C, and D on its web portal, and disclose instances where officers' grades were upgraded by the chairman or anomaly committee. When contact, the FBR officials refused to give official comment on the matter. Copyright Business Recorder, 2025
Arab News
02-05-2025
- Business
- Arab News
Pakistan foils bid to smuggle donkey hides worth Rs80 million to China
KARACHI: Pakistan Customs has foiled an attempt to smuggle donkey hides, worth around Rs80 million ($283,862), to China, a customs spokesperson said on Friday. The staff deployed on the Risk Management Profiling System of the Karachi customs collectorate detected a container number SEGU-3154225 cleared from the South Asia Pakistan Port (SAPT) terminal in Karachi, whose export documents showed 285 packages of leather products were being sent to China by Messrs. Wow Trading. The container was allowed to be loaded on a ship after the export collectorate issued a permit, but customs authorities conducted a detailed inspection after being informed by the Anti-Smuggling Organization (ASO) staff and found the prohibited donkey hides in the container. '[The inspection] resulted in the recovery of 14,000 kilograms of prohibited donkey hides, declared under the guise of leather products, in the container, the export of which is prohibited under the export policy of the Government of Pakistan,' Irfan Ali, a customs spokesperson, said in a statement. 'A case has been registered against the exporter under the relevant provisions of the Customs Act. Further investigation is underway.' Pakistan is frequently listed as one of the countries with the highest number of donkey populations worldwide, with Islamabad reporting its donkey population had increased to 5.9 million during the fiscal year 2023-24 from 5.5 million in 2019-2020, according to the Pakistan Economic Survey (PES) 2023-24. The animal's meat and hides are quite popular in China. Gelatin derived from donkey hides is highly sought after in China for its use in Ejiao, a traditional medicinal remedy. Several Chinese eateries sell donkey meat and burgers for consumption. The seizure of donkey hides comes amid a Pakistani government crackdown on smuggling of various goods. 'Karachi Customs Enforcement Collector Moinuddin Wani appreciated and praised the performance of the officers and staff of the enforcement collectorate for this successful operation,' Ali added.
Business Recorder
01-05-2025
- Business
- Business Recorder
Legal challenge to audit regime: SHC hails director (PCA) South assistance
KARACHI: The Sindh High Court (SHC) has acknowledged the assistance provided by Director Post Clearance Audit (PCA) South, Sheeraz Ahmed, in resolving a complex legal challenge to Pakistan Customs audit regime. The case involved Karachi-based importer, an Export Facilitation Scheme (EFS) user that imports iron and steel scrap. What began as a standard regulatory audit by PCA South evolved into a legal dispute when the company filed the suit, challenging the audit proceedings. While the SHC initially issued an interim order preventing 'coercive action,' it notably did not halt the ongoing audit process being conducted by the PCA Directorate. According to the details, the importer subsequently withheld complete records during the audit, particularly critical stock statements that would verify the status of imported EFS goods. This non-compliance prompted PCA to issue a second audit notice in October 2024, alongside conducting stock-taking at the EFS premises. The importer, alleging repetitive auditing for the same period, approached the SHC again with a Constitutional Petition that same month. The court expressed serious concerns about the legality of conducting two simultaneous audits for the same period. A double bench comprising Justice Agha Faisal and Justice Abdul Mobeen Lakho summoned Director PCA South to explain the procedural conduct. During the hearing on April 23, Director PCA Sheeraz personally appeared before the court and provided a detailed explanation that the second audit notice was issued specifically due to the importer's non-compliance with the first audit notice. He argued that the legal maneuvers by the said importer appeared to be tactical delays aimed at obstructing the legitimate audit process. Advocate Khalid Rajpar, representing PCA South, reinforced this position by assuring the court that the department would adhere strictly to legal protocols after completing the audit. He highlighted concerns about the importer's apparent use of repetitive court cases as a strategy to derail standard procedural audits. The SHC acknowledged the thorough explanation provided by PCA director, with the court's commendation representing a significant endorsement of PCA South's persistence despite operational challenges. The court ultimately disposed of the petition, establishing an important precedent for future audit-related litigation. Legal experts suggested this decision will strengthen confidence in Pakistan Customs regulatory framework for post-clearance audits, potentially deterring similar obstructive tactics in the future. Copyright Business Recorder, 2025
Express Tribune
25-04-2025
- Express Tribune
Medical devices, e-cigarettes worth Rs14 crore seized at Karachi port
Listen to article Pakistan Customs has thwarted an attempt to smuggle goods worth Rs14 crore through misdeclaration at Karachi's Qasim International Container Terminal (QICT), officials said Friday. According to Deputy Collector Raza Naqvi, the consignment was declared under the Export Facilitation Scheme (EFS) as aluminium foil scrap, but examination revealed it contained a range of undeclared high-value items, Express News reported. These included medical equipment, e-cigarettes, vape flavours, and lithium batteries. The 40-foot container, imported from Malaysia, was cleared through the Green Channel at QICT. Customs acted on a tip-off and seized the container immediately after it exited the terminal. Documentation showed a declared weight of 81,950 kilogrammes of aluminium foil. 'After a thorough examination, the consignment was found in clear violation of EFS rules,' Naqvi confirmed. Officials registered a case against the importer, M/s Domestic Industries, and confiscated the goods. Further investigations are ongoing.
