In a recent report, the Government of Pakistan’s Office of the Chief Collector of Customs (Exports/IOCO) in Karachi has highlighted the exceptional performance of the Export Collectorates of Karachi and Port Muhammad Bin Qasim (PMBQ) in addressing violations under the Export Facilitation Scheme (EFS). The report, addressed to the Member Customs (Operations) at the Federal Board of Revenue in Islamabad, emphasizes the stringent measures and vigilant inspections undertaken to ensure compliance with the EFS.
Leading the charge, Collector Exports Karachi Irfan Javed, ADC Dr. Sadia Sadaf, DC Wasif Malik, and DC Ali Arif have been pivotal in these efforts. Similarly, Collector Port Qasim Sadia Sheraz, ADC Ghulam Haider Mahesar, DC Umar Latif, DC Amin Haider Shaikh, and AC Usman Butt have also contributed significantly to this achievement.
Cases of MCC Exports Karachi from the fiscal year 2024-25 where exporters attempted to exploit the EFS by misdeclaring goods. Notable cases include:
1. M/s. Volka Food International Limited: The company declared “Wafer Crust,” but lab reports confirmed it as “vegetable husk,” resulting in a contravention report. The value involved was PKR 7.77 million, with payable duty and taxes amounting to PKR 3.63 million.
2. M/s. Silver Lake Foods Products Limited: Declared “Liquid Chocolate with Almonds,” which was found to be a “Watery Mixture Brown in color with Odiferous Compound.” The value involved was PKR 3.60 million, with payable duty and taxes of PKR 1.74 million.
3. M/s. M.A. Haq Textile: Declared “100% Polyester Microfiber (Woven) Fabric White Flat / Fitted Sheet & PVC bags,” but physical examination revealed discrepancies. The value involved was PKR 30.72 million, with payable duty and taxes of PKR 12.97 million.
4. M/s. Gulfraz Fabrics: Declared “Cotton Dyed Mens Garments, Polyester Dyed Printed Fabric,” but physical examination found cosmetics instead. The value involved was PKR 7.28 million, with payable duty and taxes of PKR 3.3 million.
5. M/s. A.K. Brothers: During desk audits, units were selected for inspection, revealing missing EFS goods. The value involved was PKR 1,461 million, with payable duty and taxes of PKR 642 million.
6. M/s. Hi-Seafoods: Similar desk audits revealed missing EFS goods. The value involved was PKR 77.63 million, with payable duty and taxes of PKR 110.09 million.
7. M/s. Sharmeen Foods (Private) Limited: Desk audits revealed missing EFS goods. The value involved was PKR 48.96 million, with payable duty and taxes of PKR 40.81 million.
The Collectorate of Customs (Exports) at Port Muhammad Bin Qasim (PMBQ) Karachi reported significant recoveries in duty and tax evasion cases for the fiscal year 2024-25.
Key Cases of Duty and Tax Evasion
1. M/s Karsaz Textile Industries: During an audit and physical stocktaking, it was discovered that 28,556 kg of imported raw material, including yarn and fabric, worth PKR 9.94 million was missing. A contravention case has been initiated, and a show cause notice has been issued by the Adjudicating Authority.
2. M/s Afzal International: An audit revealed that 1,428 kg of imported fabric worth PKR 2.73 million was missing. The case has been forwarded to the Adjudicating Authority, and a show cause notice has been issued.
3. M/s S.A.K Industries: A significant quantity of imported goods, including 3,500 kg of yarn and other raw materials worth PKR 5.19 million, was found missing. The duties and taxes have been fully recovered.
4. M/s Fabritex Industries: The audit uncovered missing imported goods, including dyes and chemicals, worth PKR 7.01 million. The duties and taxes have been fully recovered.
5. M/s Pro Textile: A stock-taking exercise revealed a shortage of 45.5 metric tons of various types of imported fabric worth PKR 41.64 million. The fabric had not been utilized as reported, and a contravention case has been framed against the unit. The duties and taxes have been fully recovered.
6. M/s Pak Recycling Industry: The company imported two consignments of refurbished and used laptops without proper authorization, evading duties and taxes worth PKR 33.39 million. A demand notice has been issued, and the case has been forwarded to the Adjudicating Authority for further action.
Additionally, the Collectorate has maintained vigilance on the clearance of Green Channel consignments, detecting wrong or excess claims of input material consumption. Notable recoveries include:
– Maheen Textile Mills (Pvt) Ltd: PKR 2.56 million recovered.
– LE Topical Private Limited: PKR 0.78 million recovered.
– Asco International (Private) Limited: PKR 1.72 million recovered.
– Premium Textile Mills Limited: PKR 6.50 million recovered.
– Premium Textile Mills Limited: PKR 6.38 million recovered.
In total, the Collectorate has identified PKR 117.9 million in duties and taxes involved, with PKR 71.82 million successfully recovered. These ongoing efforts underscore the commitment of Karachi Customs to enforce compliance and recover evaded duties and taxes, ensuring a fair and transparent import-export process.
This vigilant oversight by the Karachi Customs authorities highlights their dedication to maintaining integrity within Pakistan’s customs and taxation systems, ensuring that all businesses adhere to the required standards and regulations.