Karachi – May 28, 2025:
In a major crackdown on import fraud, the Collectorate of Customs (Appraisement-East) Karachi has unearthed a large-scale scheme involving misdeclaration and concealment of imported goods, resulting in estimated tax and duty evasion of Rs. 500.44 million.
The case, registered under FIR No. 08/2025, names M/s Tri-Star Packages (NTN 8989461) and its clearing agent M/s Mahabat Khan & Sons (CHAL No. KCUS-3058) as the key conspirators. The investigation revealed deliberate misdeclaration of “Secondary Quality Electrolytic Tin Plate (ETP)” as “Prime Quality Galvalume Steel in Coil”, a lower-taxed category, to evade higher duties.
The method was deceptive: only the outer layers of the coils contained Galvalume Steel, while the inner material was the higher-taxed ETP. The declared value of USD 0.5850/kg was also significantly below the actual value of USD 0.86/kg, as per Valuation Ruling No. 1948/2025.
Based on credible intelligence, customs officials swiftly blocked six Goods Declarations (GDs) for inspection. A physical examination and lab testing on May 23, 2025, confirmed the concealment. The estimated total value of the imports was Rs. 850.65 million.
Charges have been filed under Sections 32(1), 32(2), 32A, 79, and 209 of the Customs Act, 1969, with additional violations under the Sales Tax Act, 1990, and Income Tax Ordinance, 2001.
Collector Naveed Ilahi led the investigation with a special team including Additional Collector Amjad Leghari, Deputy Collector Huda Malik, and Appraising Officers Saud Shaikh and Jawahar Abbas. The operation resulted in the seizure of over 1,700 tons of misdeclared coils from multiple locations, including bonded warehouses and factories.
Internal sources raised concerns over alleged systemic weaknesses within the appraisement framework. Chief Collector Nasir Jameel faces criticism for policies said to enable such fraudulent clearances, including misuse of the “green channel” and a controversial officer reward system that allegedly discourages scrutiny.
Appraising Officer Syed Ansar Hussain, credited with uncovering a Rs. 4 billion fraud, was reportedly denied acknowledgment and faced internal pushback.
Additionally, customs staff report deteriorating working conditions under the Faceless Customs Assessment system, with extended hours, canceled leave, and no public holidays—despite May 28 being declared a holiday for Yaum-e-Takbeer.
Authorities have pledged to apprehend all individuals involved, including directors and partners of Tri-Star Packages and Mahabat Khan & Sons. The investigation is ongoing and expected to reveal further insights into fraudulent practices and internal lapses, reinforcing the call for robust oversight and reform in customs operations.
