FBR uncovers major customs fraud at Karachi airport

• Five consignments removed using forged gate passes.
• Rs103m electronics consignment seized in timely action.
• Employees of foreign ground-handler among those arrested.

ISLAMABAD: In a significant enforcement breakthrough, the Federal Board of Revenue (FBR) has unearthed a massive fraud at Jinnah International Airport, Karachi, where high-value electronic consignments were being illegally removed without filing Goods Declarations (GDs) or paying Customs duties and taxes.

According to an FBR statement, the scam was orchestrated by employees of a foreign-based ground-handling company, which was also the custodian of the goods, in collusion with unscrupulous importers. It involved the use of fake and forged documents issued by the company’s employees to remove electronic goods worth hundreds of millions of rupees from the airport, The News reported on Saturday. 

The fraud came to light after credible intelligence was received and promptly acted upon to strengthen controls at the Karachi airport. The timely intervention led to the seizure of a consignment valued at Rs103 million, including laptops, iPads, iPhones, MacBooks, PlayStations and memory cards, before it could be spirited away. 

Apart from this, two consignments were found to have been fraudulently cleared on the basis of fake gate passes. The Collectorate of Customs Airport Karachi immediately lodged two FIRs and also arrested employees of the company involved in the case.

Investigations have since confirmed that five consignments in total were illegally removed through this fraudulent modus operandi. All were shipped from the UAE. 

These consignments, packed in two pallets weighing around 900–1000 kg each, were deliberately concealed from the Customs WeBOC system, preventing GD filings and enabling their clearance through fake gate passes. The total estimated value of evaded duty and taxes involved in the illegal removal of the five consignments is Rs384 million.

Employees of the company manipulated their computerised iCargo system to conceal airway bills for the issuance of fake gate passes used for the illegal removal of high-value electronic goods.

Customs investigators have also highlighted the foreign-based company’s refusal to provide CCTV footage and critical records despite repeated requests, raising serious suspicion of complicity at the senior management level.

FIRs have been lodged, and accused individuals have been arrested, while efforts are underway to recover the evaded amounts. Further FIRs and arrests are on the cards. The FBR authorities have emphasised that no leniency would be shown to custodians and Customs functionaries who fail in their duty.