Karachi: In an unprecedented crackdown, the Export Collectorate of Port Muhammad Bin Qasim (PMBQ) has uncovered a staggering fiscal fraud and smuggling scheme amounting to Rs. 825 million.
The First Information Report (FIR) was lodged following audit and investigation into the activities of M/s. Sardar Enterprises, a trading unit operating within the Export Processing Zone Authority (EPZA), Karachi. This operation was headed by Collector Sadia Sheeraz and executed by Additional Collector Zuhra Naqvi and Deputy Collector Amin Haider Shah.
The investigation, which targeted M/s. Sardar Enterprises for the Financial Year 2023-24, revealed alarming levels of duty and tax evasion through the misuse of the EPZ exemption regime. The probe exposed the illicit pilferage of exempt goods and the unauthorized clearance of old, used, refurbished laptops into Pakistan’s tariff area, violating the regulations set forth by the Ministry of Industries and Production.
Two suspicious consignments tied to M/s. Sardar Enterprises were intercepted by Deputy Collector Amin Haider Shah, who conducted detailed examinations that unveiled grave discrepancies.
The first consignment, as per Goods Declaration (GD) No. PQZI-EP-26364-22-01-2025, falsely claimed to contain “One Lot of mix Old & Used faulty LCD Laptops, LCD panels, Computer parts, and accessories” under PCT Heading 7204.4990. However, physical examination revealed unauthorized used tablets and new keyboards in working condition, valued at Rs. 10.6 million, evading duty/taxes worth Rs. 3.6 million. These offending goods have been seized.
The second consignment, found at Qasim International Container Terminal (QICT), lacked a filed GD, resulting in an on-port examination on January 24, 2025. The bill of lading and manifest declared it as “Raw Cotton,” but the physical inspection revealed it concealed 14,000 kg of Cellulose Acetate Tow—an item with high duty classification under HS Code 5502.1000, attracting a Federal Excise Duty (FED) of Rs. 44,000 per kg. The seized goods, composed of Cellulose Acetate Tow, were valued at Rs. 22 million, constituting evaded duty/taxes worth Rs. 821 million.
The total value of the illicit goods from both consignments is Rs. 32.5 million, with evaded duties and taxes amounting to Rs. 825 million. This case highlights the flagrant misuse of the EPZ exemption regime, involving severe violations of the Customs Act, 1969, and EPZA Rules. Consequently, an FIR has been lodged, and teams have been established to apprehend the culprits and their associates.
In response to this discovery, led by Collector Saadia Sheeraz, with critical roles played by ADC Zehra Naqvi and DC Amin Haider Shah, there is a heightened call for stricter regulatory oversight within the EPZA. The Collectorate has suggested the cancellation of M/s. Sardar Enterprises’ license due to repeated violations and misuse of the exemption regime. The immediate actions taken by the Collectorate serve as a stern deterrence and warning to all entities attempting to defraud the government through pilferage and smuggling.
An official revealed that the expiration of the TPL Tracking Company’s contract, and the appointment of four new tracking companies lacking the CSD system, have created vulnerabilities, allowing illicit actions to flourish. The role of EPZA has also come under scrutiny.
This case, which underscores the necessity for stringent regulatory measures, serves as a wake-up call to enforce compliance and uphold the integrity of the EPZ exemption regime.