SIALKOT: A sensitive investigation agency has launched a sweeping probe into a major customs duty evasion case involving M/s Rainbow Industry Converter & Packaging, a company operating within the Sialkot Export Processing Zone (EPZ). Authorities allege that the firm misdeclared goods—specifically cigarette filters—resulting in an estimated loss of Rs593.815 million to the national exchequer.
The consignments in question were reportedly cleared through the Faceless Customs Assessment (FCA) system, which effectively prohibits physical examination. Sources close to the investigation said that several shipments passed through FCA without scrutiny, enabling the alleged misdeclaration. In one instance, an appraising officer who attempted to send a consignment for examination was subsequently denied incentives and rewards that were otherwise granted to fellow officers, raising concerns about internal disincentives for enforcement.
The case was initially detected by Director Transit Trade Fawad Ali Shah and his team led by Additional Director RAshid Munir, who blocked a suspicious consignment for examination. However, Customs Appraisement Port Qasim proceeded with the examination without the presence of Transit Trade officials and released the consignment. It was later transshipped under TP No. KPPI-TP-24787 dated November 6, 2024, The shipment, loaded in container TGBU9988903 and transported via vehicle TMQ-765, was first examined at Port Qasim and then re-examined upon arrival at Sialkot EPZ.
Customs officials at both locations flagged discrepancies in the description of goods, raising suspicions of deliberate misdeclaration. The import documentation, specifically GD No. SKZI-HC-262 dated November 11, 2024, was scrutinized and revealed inconsistencies between the declared and actual contents of the container. The Directorate of Transit Trade, in a letter dated November 29, 2024, formally urged the Collectorate of Customs Sialkot to conduct a detailed investigation under Rules 329 and 329-A of the Customs Rules, 2001. The letter also included the bonded carrier’s profile and trip history, confirming that vehicle TMQ-765 completed its journey between November 9 and November 12, 2024.
Further analysis of customs operations revealed that a total of 29,025 import and export GDs had been processed, with 20,997 registered vehicles under scrutiny and 93 contravention cases recorded. In response, Collector Saira Agha of the Collectorate of Customs Sialkot has called for a comprehensive review of the bonded carrier’s operations and the movement of duty-suspended goods. Officials are now coordinating with Karachi’s Directorate of Transit Trade to determine the extent of regulatory violations and any potential collusion.
The case has prompted renewed calls for tighter oversight of transshipment protocols and bonded carrier operations, particularly in high-volume zones such as Sialkot EPZ. Legal action is expected to follow pending the outcome of the investigation.