KARACHI: Customs authorities in Karachi have exposed a major scam in which importers misdeclared expensive fabric as “cut pieces” to avoid paying full duties, causing losses of more than Rs300 million to the national exchequer. According to an official alert, complete suits and rolls of fabric were being declared as remnants, which are normally leftover cloth sold at lower prices. In reality, these were uniform cut-to-size fabrics, including high-value curtain cloth, but they were cleared at undervalued rates.
Four companies — SK International, ZK Enterprises, Aqsa Trading Company and Zarkash International — were involved in the scheme, with Shan-e-Awan identified as the mastermind. Clearing agent declared the fabric at 90 cents per meter, while customs appraisers assessed it correctly at $3–5 per meter under valuation rulings. Importers initially accepted the duty and taxes but later bypassed the faceless review system by approaching certain Assistant Collectors directly. These officers reassessed the goods at the lower declared value, against official guidelines.
In total, 159 Goods Declarations were reassessed in Appraisement West, with 80 handled by one Assistant Collector alone. Only one GD was reassessed at SAPT. This practice allowed large consignments of complete suits and rolls to be cleared as cut pieces, evading millions in duties.
Chief Collector Appraisement South Wajid Ali formed a fact-finding committee led by Additional Collector Jahanzaib Abbasi, who reported revenue losses and recommended a full investigation. The probe is now being carried out by a Joint venture of Wajid Ali and DG PCA and Member Facilitation Mechanism Yaqoob Mako, also known as General Mako.
Director PCA Afzal Watto, Additional Directors Rana Aftab and Tauseef Gorchani, and Deputy Directors Talha Salman and Shakeel Ahmed.
All reassessed GDs will now be reviewed, and strict action is expected.
Officials admit that Deputy and Assistant Collectors, Principal Appraisers and Appraisers are heavily overburdened due to staff shortages, which has weakened enforcement and vigilance. This shortage allowed importers and clearing agents to exploit the system. Authorities say accountability will be ensured and measures will be taken to prevent such misuse in the future.