QUETTA: Collectorate of Customs Enforcement in Quetta has uncovered a large-scale misdeclaration scheme involving the import of used LED/LCD monitors. The case, which has resulted in the seizure of goods worth over PKR 50 million, highlights a sophisticated attempt to evade customs duties and taxes.
Information was passed through Collector Umar Shafique to Deputy Collector Saifullah and subsequently customs officials at the Field Enforcement Unit (FEU) in Lakpass intercepted a vehicle bearing registration number C-2899 en route from Taftan to Quetta. The vehicle was carrying a consignment declared as “Used LCD/LED monitors” under HS code 8528.5200, with a declared quantity of 10,000 pieces and a net weight of 27,530 kg. However, upon physical examination, officials discovered that the actual goods did not match the declared description.
Instead of complete monitors, the vehicle was found to contain 11,864 used LED/LCD monitor panels of various sizes, along with 410 printed circuit boards, 950 HP backlight inverter constant current driver boards, 48 AC/DC adapters, and 30 kg of LED driver board cables. The discrepancy in the description and quantity of the goods raised immediate red flags, leading to the detention of the consignment for further investigation.
Further scrutiny revealed that the importer, M/s ARSH Traders, and their clearing agent, Kashif Enterprises, had intentionally misdeclared the goods to evade customs duties. The goods were declared at a value of $1.70 per piece, whereas the correct valuation ruling (1849/2024) should have been applied at $0.70 per inch under HS code 8524.1900. This misdeclaration resulted in a significant loss to the national exchequer, estimated at PKR 26,918,726.
The investigation also uncovered that the customs staff at the Collectorate of Customs Appraisement in Taftan had failed to properly classify the goods and apply the correct valuation ruling. This negligence, whether intentional or otherwise, facilitated the misdeclaration and underreporting of the goods’ value.
The goods, along with the vehicle, have been seized under Section 168 of the Customs Act, 1969. Notices under Section 171 of the Customs Act have been issued to the importer, and a copy has been displayed on the notice board of the FEU headquarters in Lakpass. The case has been registered under FIR No. 01/2025, dated February 6, 2025, and further investigations are underway.
The authorities have also identified three other consignments cleared by M/s AH Enterprises through a different clearing agent, M/s Jamaldini Brothers & Co., using the same modus operandi. Notices under Section 26 of the Customs Act have been issued, but no response has been received yet.
This case underscores the challenges faced by customs authorities in combating fraud and ensuring compliance with import regulations. The involvement of customs officials in the misdeclaration raises concerns about internal oversight and the need for stricter controls to prevent such incidents in the future.
The Collectorate of Customs Enforcement has vowed to continue its crackdown on customs fraud and has called for enhanced vigilance and cooperation among all stakeholders to safeguard national revenue.