FBR finds huge tax evasion scheme at Karachi airport

The Federal Board of Revenue (FBR) has found a huge scam at Jinnah International Airport (JIAP) in Karachi, where high-value electronic shipments were being taken out without paying customs duties and taxes or submitting Goods Declarations (GDs).

A news release said on Friday, “The scam, which was run by employees of a foreign-based ground-handling company that was also in charge of the goods, involved the use of fake and forged documents issued by the company employees to take electronic goods worth hundreds of millions of dollars from the airport.”
The fraud was discovered after reliable information was received and acted on quickly, which made security at the Karachi airport stronger.

The FBR reported that the quick action led to the seizure of a shipment worth Rs. 103 million, which included computers, iPads, iPhones, MacBooks, PlayStations, and memory cards, before it could be stolen.

“Besides this, two shipments were determined to have been fraudulently cleared using phony gate passes. It also said that the Collectorate of Customs Airport Karachi quickly filed two FIRs and arrested personnel of the company implicated in the issue.

The FBR noted that investigations have shown that five shipments were illegally taken using this method. All of them were transported from the UAE by M/s Pir Jillani General Trading LLC, Dubai.

The Customs WeBOC system was purposely kept from seeing these shipments, which were stacked in two pallets that weighed between 900 and 1,000 kg each. This stopped GD filings and let them through bogus gate passes.

The unauthorized removal of the five shipments cost the government an estimated Rs. 384 million in lost taxes and duties.

The FBR alleged that workers at the company messed with their computerized iCargo system to hide airway bills so they could make fraudulent gate passes to steal expensive electronics.

It claimed that customs investigators have also pointed out that the foreign-based company has refused to give CCTV video and important data even after being asked many times. This raises major doubts about whether senior management is involved.

FIRs have been filed, and the people who are being accused have been arrested. Work is now being done to get the money that was not paid. FBR is determined to leave no stone unturned in its efforts to recover the evaded sum, which could lead to more FIRs and arrests.

The Chairman and Member Customs of the FBR have promised that custodians and customs officials who don’t do their jobs will not be shown any leniency.