KARACHI: Directorate of Customs Intelligence in Karachi, has exposed a fraudulent scheme involving the import of artificial leather valued at Rs. 220 million.
Information was passed through Director General Mr. Faiz Ahmed Chadhar to Director Karachi Engr Habib Ahmed regarding the clearing agency M/s Ayyaz Enterprises being involved the importation of artificial leather under the guise of non-existent companies purportedly for the production of export goods.
Additional Director Inamullah Wazir and Deputy Director Saifullah pursued the case, investigations revealed that the goods were being sold illegally in the domestic market.
The elaborate ruse included fictitious entities such as M/s Awami Textile, M/s Faraz Enterprises, and M/s Pak Asia, which were found to have no physical presence and were merely paper companies.
These companies were allegedly created to exploit the Export Facilitation Scheme, a government initiative aimed at boosting exports, to evade a substantial amount of duty and taxes.
M/s Ayyaz Enterprises is accused of importing artificial leather worth Rs. 220 million, dodging duties and taxes amounting to Rs. 110 million, and subsequently selling the material on the black market.
A shipment worth Rs. 16 million, which evaded Rs. 8.6 million in duties and taxes, was seized at KICT West Wharf, Karachi port.
The Directorate has filed an FIR against both the clearing agent and the fabricated companies involved in the importation.
The Directorate of Customs Intelligence believes that this prompt action against the misuse of the Export Facilitation Scheme will serve as a deterrent to similar fraudulent activities in the future, safeguarding the interests of legitimate exporters.