KARACHI: A significant case of customs evasion unfolded at the Custom House, Karachi, exposing the deep-rooted challenges faced by Pakistan’s customs enforcement system.
The incident revolved around M/S ZA Polymer Industries, which attempted to import polyester woven textile fabric laminated with synthetic polymer acrylic under false declarations.
The consignment was intercepted by Collector Umar Shafique, who ordered a thorough examination. Upon inspection, it was revealed that the goods had been mis-declared both in value and classification.
Instead of being assessed at USD 3.75 per kg under PCT heading 5903.9900, the importer had declared them at USD 1.6 per kg under PCT heading 6303.9900. This manipulation resulted in a short levy of duties and taxes amounting to nearly Rs. 10 million.
The case detected by Customs Enforcement was referred to Customs Appraisement, which then served the contravention report.
Officials admitted that such scams are not isolated. A senior source revealed that collectors are often powerless due to lack of staff and resources. They cannot conduct post-release verification (PRC) or research and development (R&D) checks, leaving loopholes that unscrupulous importers exploit. Interestingly, collectors themselves lack authority over examination or appraisement, which further weakens oversight.
Currently, only the Collectorate of Enforcement is actively working against mis-declaration and under-invoicing. However, they too are extremely short-staffed. On the instructions of Chief Collector Enforcement Basit Abbasi, a crackdown was launched at the appraisement stage to curb these practices.
Despite these limitations, Umar Shafique has been praised for his proactive role. With just three appraisers — Deputy Collector Taufiq Shaikh, and Appraising Officers Khizar Khurshid, Inam-ul-haq, and Faiz Ahmed — he manages jurisdiction over SAPT, Appraisement East, Appraisement West, Port Qasim, and the Airport. An official noted that the Collectorate of Enforcement should ideally have at least 10 appraisers to effectively handle the workload.
This case highlights both the vigilance of dedicated officers and the systemic weaknesses in Pakistan’s customs enforcement. While individuals like Umar Shafique are doing commendable work, the lack of manpower and authority continues to hinder broader reforms. The crackdown ordered by Basit Abbasi signals a step in the right direction, but without structural changes, the cycle of mis-declaration and tax evasion may persist.