KARACHI: In a significant development, it has come to light that importers have been exploiting the new Faceless System to book their consignments, taking advantage of the system’s teething period.
Officials have revealed that a comprehensive audit of the Faceless System, specifically in Customs Lahore, Customs Gujranwala, and Customs Sialkot, could uncover revenue losses amounting to hundreds of billions of rupees. This substantial loss is a key factor contributing to the current revenue shortfall. It also needs to be investigated which political figures are involved in this scam.
According to an official, there is a larger scam at play, where Customs Intelligence was deactivated in the initial phase, thereby removing the capability to detect such frauds.
Additionally, the clearance rate through the green channel was increased from 25% to 60%. Furthermore, Goods Declarations (GDs) were instantly cleared through the Faceless System, preventing the examination and verification of documents.
The official also highlighted that 90% of the bureaucracy in Pakistan is primarily concerned with their career promotions and postings, rather than the interests of the country and its people. Competent and honest officers were reportedly sidelined before the launch of the Faceless System.
In a related development, the Collectorate of Customs Appraisement-East in Karachi has uncovered a major case of misdeclaration involving the import of high-value goods.
The case, registered under FIR No. 06/2025-R&D(East), involves the attempted clearance of “Acetate Tow” under the guise of “Polyester Staple Fiber,” which could have resulted in a revenue loss of approximately Rs. 1.25 billion.
The investigation began after the Collector of Customs, Appraisement-East, received credible information that unscrupulous elements were attempting to clear “Acetate Tow,” a high-value and heavily dutiable product, by misdeclaring it as “Polyester Staple Fiber.” The goods were imported from the UAE under GD No. KAPE-HC-50209-24-02-2025.
Upon examination, customs officials discovered that the container numbered SEGU4135678 did not contain the declared “Polyester Staple Fiber” but instead held “Acetate Tow.” The consignment, originating from China, was packed in 389.95-kg cartons with a declared net weight of 23,123 kg. However, physical inspection confirmed the weight to be 22,550 kg.
Samples were sent to the Custom House Laboratory, which confirmed that the material was “Acetate Tow” composed of cellulose acetate. The lab report (Receipt No. 178143) verified that the goods were not as declared.
The primary accused in the case is M/S Global Textile, located in Karachi, in active connivance with M/S Sakina Enterprises, a clearing agent also based in Karachi. The companies allegedly attempted to evade customs duties and taxes by misdeclaring the goods.
The accused parties face charges of violating multiple sections of the Customs Act 1969, including Sections 32(1) and 32(2), related to misdeclaration and evasion of customs duties. The case also involves violations of the Federal Excise Act 2005, the Sales Tax Act 1990, and the Income Tax Ordinance 2001. The total value of the offending goods is estimated at Rs. 38,021,979, while the attempted evasion of duties and taxes amounts to approximately Rs. 1.25 billion.
Customs officials have lodged an FIR and are conducting a thorough investigation to apprehend all individuals involved in the fraudulent activity. This case underscores the ongoing challenges faced by customs authorities in combating misdeclaration and tax evasion, particularly in high-value imports.
Mr. Saud Ali Akhtar, the complainant in the case, emphasized the importance of vigilance in preventing such fraudulent activities. “This case is a clear example of how some importers and clearing agents attempt to circumvent the law for personal gain, at the expense of the national exchequer. We are committed to taking strict action against all those involved,” he stated.
Another GD processed by Appraiser Malik Waleed for the same importer attempted to cause a loss of PKR 2 billion. An FIR has not been lodged because officers are unsure whether to include Malik Waleed’s name in the FIR. Appraisers fear that if Waleed is named, all appraisers in the Faceless System will stop working and block all imports, as they are instructed to immediately clear consignments. Malik, a new appointee, has not completed his training and was posted in the Faceless System.
Moreover, another clearing agent, M/S Jaffar & Sons, should also be investigated. The owners of M/S Sakina Enterprises have escaped, and it is likely that the owners of M/S Jaffar & Sons will also escape. The importer filed GDs after a gap of two years, raising concerns about how an importer using fake documents and addresses was registered and given a WeBOC ID. An official pointed out that several such importers are registered without proper due diligence.