Karachi: In a significant victory against fraudulent import practices, the Collectorate of Customs Enforcement, Karachi, led by Collector Mr. Moin-Uddin Ahmad Wani, has successfully intercepted and detected three major cases of misdeclaration, thereby preventing revenue evasion of millions of rupees. A dedicated team of officials, including Additional Collector Mr. Baasit Hussain, Deputy Collector Syed Muhammad Raza Naqvi, and Assistant Collector Mr. Shahzad Ali, was instrumental in these operations.
An official disclosed that the absence of appraisers capable of understanding appraisement had previously hindered enforcement efforts. However, with the dissolution of Customs Intelligence, Customs Enforcement has now been empowered across Pakistan, except for Lahore, to monitor and check fraudulent practices in appraisement.
Due to stringent enforcement measures in Karachi, many importers have shifted their activities to the dry port in Lahore. The Faceless Customs Appraisement system, overseen by Chief Collector Nasir Jameel and Collectors Naveed Ilahi, Irfan Wahid, and Nayyar Shafique, ensures vigilant monitoring. These competent and honest officers have created an environment where appraisers are cautious, attaching high-value data proofs with the Goods Declaration (GD). Principal Appraisers in the first review are also under pressure to avoid any malpractices, leading to swift processing without calling for additional documents.
Initially, importers and customs agents enjoyed some leniency in the early months of the Faceless system, but enforcement controls have been gradually tightened, securing significant revenue for the government. The transformation aligns with Army Chief General Asim Munir’s policy against corruption and smuggling.
The volume of transshipment (TP) consignments have shown drastic growth following the implementation of the Faceless Assessment System (FSA), with volumes jumping from 15,335 in November 2024 to 23,187 in January 2025, marking an unprecedented increase of over 50 percent.
Notable Cases of Misdeclaration:
1. 6-Inch Wheels by M/s. Razi Sons Pvt Ltd:
A customs team intercepted a consignment of 6-inch wheels imported by M/s. Razi Sons Pvt Ltd (NTN-3349955) through GD No. KAPS-HC-120057 dated 27.01.2025. The importer misclassified the goods under PCT heading 8302.2000 instead of the correct PCT heading 8716.9000 to avoid higher duties. The correct PCT heading attracts a Customs Duty of 35% and an Additional Customs Duty (ACD) of 7%, whereas the misdeclared heading was taxed at a mere 0.83% and 2%, respectively. The misclassification resulted in a duty shortfall of Rs. 1,468,000, which has now been recovered. The importer admitted to the misdeclaration and voluntarily paid the amount via a pay order.
2. Caster Wheels by M/s. Imtiaz Group:
Another customs team intercepted a container imported by M/s. Imtiaz Group, where caster wheels were misclassified under PCT heading 8302.2000 instead of 8716.9000, evading a 35% Customs Duty. This misdeclaration led to the evasion of Customs Duty, Sales Tax, and Income Tax amounting to Rs. 3.75 million.
3. Lithium-Ion Batteries by M/s. Salman Traders:
Acting on credible intelligence from the Chief Collector (Enforcement) in Islamabad, a customs team intercepted container No. HDMU6715472, imported by M/s. Salman Traders (NTN-4104957) through GD No. KAPW-HC-124583 dated 01.02.2025. The consignment was falsely declared under PCT heading 8507.8000 to undervalue the goods and evade taxes. The importer misclassified lithium iron phosphate batteries to reduce duty and taxes. The declared weight of 6,200 kg was found to be 7,570 kg, further manipulating tax calculations. The correct PCT heading mandates a valuation of $7-9/kg, whereas the importer declared $1.8/kg. The evasion of Customs Duty, Additional Customs Duty, Sales Tax, Regulatory Duty, and Income Tax amounted to Rs. 7,290,285.
The entire operation underlines the commitment of Karachi Customs Enforcement in safeguarding national revenue and maintaining the integrity of import practices in Pakistan.