KARACHI: In a case that has exposed deep fissures in Pakistan’s customs appraisal system, an importer has accused an examiner of blackmail and harassment after three different examination reports were allegedly prepared for the same container, raising serious questions about the integrity and competence of the faceless customs assessment (FCA) regime.
Makkah Traders, in an urgent complaint to the Chief Collector of Customs, Karachi, has named Examiner Hamza Israr, alleging he demanded a bribe to remove a misdeclaration objection.
The complaint states that Israr initially prepared a draft report flagging excess quantities of school bags (11.6%) and hair dye shampoo (97%). When the trader refused to pay, a second draft allegedly removed the objection against the school bags, linking the change to a payment demand. Upon refusal, the first adverse report was forwarded to the department.
A re-examination, ordered by the competent authority, produced a third report with a detailed, size-wise breakup of the items, contradicting the earlier findings.
The complainant noted that the re-examination “demonstrates that the examination findings concerning Item No. 1 required proper verification and reconciliation,” highlighting the material discrepancies in the three reports: quantities of school bags fluctuated, weights of self-drilling screws changed by 400 kgs, and travel backpack counts shifted significantly.
This case brings to the fore long-standing concerns regarding the FCA system’s vulnerability to manipulation. “Examination is done at dryports, and there are no checks on these examinations,” a source said.
“Based on these examination reports, assessment is done at FCA Karachi, which makes the system prone to exploitation.” The complaint itself alleges the examiner “misguided the department” and attempted to “influence/misguide” the process, even after the re-examination.
Sources within the trade circle claim the issue is systemic, involving the posting of non-technical and inexperienced officials to key examination posts. “Technical appraisers were removed, and officials with no expertise in goods examination were put on the job.
This incompetence is causing massive delays, and traders are suffering detention and demurrage costs,” an importer said, speaking on condition of anonymity. The business community at Lahore Dry Port has previously complained that delays of 15 to 30 days in assessments, often due to discretion by officials, result in heavy financial losses through demurrage charges.
Furthermore, allegations are rife that the FCA system is facilitating a cartel of importers in Punjab and Khyber Pakhtunkhwa. “A particular cartel has been able to place all the pieces in the right places on the chess board,” an official said, expressing despair over the lack of effective oversight.
The official added that “Customs Enforcement was the only check, but after Jameel Nasir becoming Chief Collector Enforcement, these hopes have faded.” This perception of a systematic failure is reinforced by an audit of the FCA system, which uncovered a staggering revenue loss exceeding Rs. 7.4 billion due to irregularities like misclassification, misdeclaration, and misuse of exemptions.
The Makkah Traders case is currently pending before the Chief Collector, with the trader requesting an immediate independent examination, exclusion of the involved examiner from the process, and a departmental inquiry into the allegations of blackmail and “personal victimization.” As the container remains stuck, incurring additional costs, the case serves as a stark reminder of the potential for abuse within a system that, while intended to ensure transparency, appears increasingly susceptible to manipulation and human error.