Lahore: The Collectorate of Customs Appraisement (East) has exposed a large-scale fiscal fraud involving misdeclaration and evasion of duties on imported goods, causing a potential loss of over Rs. 6.9 million to the national exchequer.
The FIR (No. 01/2025), registered under Sections 32, 32(A), 79, and 209 of the Customs Act, 1969, reveals that M/s Mamund Traders, an importer based in Lahore, attempted to evade taxes by grossly misdeclaring the description, quantity, and value of goods imported from China. The consignment, transported via a 40-foot container (No. MSCU7867031), was intercepted at Dryport Mughalpura, Lahore, on March 26, 2025.
The importer, in collusion with their clearing agent M/s Al-Noor, filed a Goods Declaration (GD) in the WeBoc system, declaring 1,506 cartons of assorted items, including auto parts, switches, and ball bearings, with a declared weight of 27,900 kg. However, upon physical examination, customs officials found:
– Discrepancies in quantity: Only 1,500 cartons were present instead of the declared 1,506.
– Misdeclared goods: Several items were falsely declared to evade higher duties. For instance:
– Lip gloss bottles were declared as “empty packing” but were found to be complete products.
– Fountain pens with metal caps were declared as “pen parts.”
– Vacuum flasks were misdeclared as “plastic bottles.”
– Marble cutting blades were undervalued by misclassifying them under a wrong PCT code.
– Undeclared goods: High-value items like fuel injection pumps, ignition coils, and self-starter carbon brushes were concealed.
The total value of the offending goods was assessed at Rs. 8.73 million, with evaded duties and taxes amounting to Rs. 6.96 million.
The FIR names 11 accused, including:
– CEO and directors of M/s Mamund Traders (NTN: A981232-7).
– Representatives of M/s Al-Noor Clearing Agency.
– Individuals involved in the smuggling network, identified via CNIC and phone numbers.
The case has been forwarded to the Special Judge Customs, Taxation & Anti-Smuggling, Lahore, for further investigation and prosecution under the Customs Act, Sales Tax Act, and Income Tax Ordinance.
Customs Inspector Chaudhry Amon, the complainant, emphasized that such frauds undermine Pakistan’s revenue system. Azmat Ullah, Inspector (I&P), confirmed the FIR’s registration, stating that strict action will be taken against all involved.
This case highlights ongoing challenges in curbing trade-based tax evasion and underscores the need for stricter scrutiny of self-assessment declarations. The Customs Department has urged importers and clearing agents to adhere to legal requirements to avoid severe penalties.
– The accused will be summoned for interrogation.
– The seized goods remain in custody at Railway Godown, Mughalpura.
– Further investigations may reveal additional accomplices in the smuggling network.
This incident serves as a warning to businesses attempting to manipulate customs procedures, as authorities intensify efforts to combat fiscal fraud.