KARACHI: Directorate of Customs Intelligence Enforcement Karachi has initiated investigations into the misuse of export incentive regime and affairs at Directorate of IOCO as well as account books of export-oriented industrial units enjoying these incentives will reportedly come under scrutiny.

Directorate General of Customs Intelligence and Investigation–FBR consistently received complaints from All Pakistan Textile Manufacturers Association that certain unscrupulous elements in trade were exploiting export incentive regime and concessionary SROs.

On the information of Director Samina Wajid that M/s Diamond Fabrics, Faisalabad operating as importer/exporter manufacturing unit is involved in the misuse of the facility exemption in fabrics imported as raw material for manufacturing of textile made-ups, bet sheeds, curtains etc for subsequent exportation.

M/s Diamond Fabrics was reportedly removing finished imported fabrics (raw material) meant for use in manufacturing of textile articles for subsequent export from the manufacturing bonded premises without payment of duty and taxes and selling in local market. It was also known that in order to cover up the illegal removals, finished goods/fabrics purchased from local markets were used in export shipment.

Deputy Director Sanam Qureshi and her team including Superintendent Farhatullah Jafri, Appraising Officer FAkhir Ali Shah and IOs Saud Hasan and Mohammad Sadiq kept a strict vigilance in this regard.

M/s Diamond Fabrics filed a GD for export to United Kingdom described as 100% polyester print and Duver cover fitted Valance sheed and bolster. In order to check the veracity of declaration, the consignment was blocked online.

The said consignment was examined and representative samples were tested. Lab report confirmed that the goods being exported were made up of cotton and blended fabrics. Resultantly, the imported raw materials have not been used in the under reference export shipment of fabrics and the mis-declaration and the fiscal fraud in the shipping documents to cover up the illegal removal of dutiable goods from bonded premises for disposal in the local market is established.  The goods were accordingly seized.

Investigations into the matter found that M/s Diamond Fabrics imported a total of 1.344 million KGs of 100 percent polyester fabric which was warehoused in the bonded premises since July 2016.

Scrutiny found that 276,894 Kgs of the same was used in export shipment while 222,539 KGs was physically available at the warehouse, which confirms that 1.067 millions KGs was illegally removed without filing of GD and payment of duty and taxes causing a loss  of Rs191.719 million to the exchequer.

On confrontation, the accused voluntarily submitted an amount of Rs85.717 million as token money with undertaking to pay all the leviable duty and taxes on the illegally removed goods as per law. An FIR has been lodged and investigations are underway.

Meanwhile, Director Customs Intelligence  Enforcement South Samina Wajid has expanded the ambit of investigation pertaining to the DTRE consignments. Quota reserved for various imports through Directorate of IOCO are also being scrutinized.

Additional Director Ali Zaman Gardezi is supervising three teams of which one will be headed by Deputy Director Sanam Qureshi, one will be headed by Tauseef Gorchani and one will be led by Deputy Director Shah Faisal Sehto.

Sanam Qureshi will investigate the affairs at IOCO and exports while Tauseef Gorchani and Shah Faisal are collecting data pertaining to the export-oriented units which are enjoying the facility.