Export of jewelry, gold against fake Form-Es; exporters imposed mammoth penalties

KARACHI: Collector Customs Adjudication Chaudry Muhammad Javaid has charged an entire racket for fiscal fraud and imposed mammoth penalties on several exporters and agents for exporting jewelry against fake Form-E depriving the country of foreign exchange, withholding tax and export development surcharge.

The Collector Adjudication has imposed penalties in the range of Rs80 million to Rs10 million along with the recovery of taxes, export development surcharge and withholding tax from the accused including M/s Reaz Corporation, M/s Sunny Impex, M/s Rubab Corporation, M/s Mekka Enterprises and M/s B.D Enterprises; M/s Kashan Enterprises, M/s Amir sons; Hanif Moosa, Humyun Moosa, Sajid Motiwala, Kashan Iqbal and others.

According to details of the case, importers including M/s Reaz Corporation, M/s Sunny Impex, M/s Rubab Corporation, M/s Mekka Enterprises and M/s B.D Enterprises exported consignments of gold, jewelry and gemstones against forged and fake Form-E.

In order to verify genuineness of Form-Es, export documents of above mentioned exporters was conducted. Scores of cases were forwarded to the respective banks. The banks confirmed that the subject Form-Es were fake and forged and the banks never issued these documents.

Scrutiny of records and subsequent correspondence with concerned banks transpired that the exporters in collusion with clearing agents have been involved in export of gold, jewelry under the garb of fake and forged Form-Es and deprived the government from foreign exchange remittances to the tune of millions of dollars and export development surcharge at the rate of 0.25 percent.

The exporters mentioned above violated provisions of Customs Act 1969, Import 7 Export control Act 1950, Foreign Exchange Regulations and Export Policy Order.

After detail deliberation of the case, Collector Chaudry Muhammad Javaid found the charges against the accused established and ordered recovery of tax and export development surcharge, while penalties in the range of Rs80 million to Rs10 million were also imposed on the beneficiaries of the scam.

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