ISLAMABAD: Collectorate of Customs (Enforcement), Karachi has detected massive misuse of facility of Export Facilitation Scheme (EFS) by importers at Karachi and ordered an immediate inquiry against customs officials including an Additional Collector of Customs, Deputy Collector of customs and other appraising and scanning officials of Collectorate of Customs (Appraisement-West), Karachi.
According to a letter of Collector of Customs, Collectorate of Customs (Enforcement), Karachi to the Federal Board of Revenue (FBR), an incident report regarding misuse of EFS has been compiled, pointing towards possible role of the concerned customs officials.
Details of the issue revealed that the consignments were declared to contain scrap items, including compressor scrap, aluminum condenser scrap, iron and steel remeltable scrap, and recoverable copper. On the basis of credible information regarding mis-declaration of description, evasion of duty and taxes, and attempted clearance of banned goods under the garb of the EFS facility, the said consignments were blocked at AICT-International Container Terminal. All four consignments had been cleared by the Collectorate of Customs (Appraisement-West), Karachi and were at the gate-out stage. The consignments were subsequently de-sealed and physically examined. During examination, the cargo was found to primarily comprise slightly used/almost new window air conditioners, portable air conditioners, and dehumidifiers of a brand and Thailand origin, along with a small quantity of compressor scrap, instead of the declared scrap items.
Scrutiny of the Green Sheets of the above-mentioned GDs reveals that the importer had sought approval for examination under Section 79(1)(b) of the Customs Act, 1969, which permits examination of goods prior to filing of the Goods Declaration. The GDs were filed and assigned to the Yellow Channel by the system. All four GDs were scanned prior to Inter-Port Movement (IPM) at PMBQ, and the scanned images are available in the system.
Out of the four GDs, two GDs, bearing Nos KAPW-FS-219797-19-06-2026 and KAPW-FS-219789-19-06-2026, were processed directly by the Assessment Officers at the CAU. In the remaining two GDs, bearing Nos KAPW-FS-219800-19-06-2026 and KAPW-FS-219796-19-06-2026, the Assessment Officer called for examination. However, the examination requests in both cases were rejected by the competent authority (AC/DC) with the following remarks:
“Industrial profile with 587 GDs: No valid reason has been recorded while calling examination. Please check scanned documents and, if examination is still required, resend the request with proper reasons.”
It is pertinent to mention that the scanned images were available in the system to the concerned DC and Assessment Officers and clearly appeared to indicate that the goods didn’t correspond with the declared descriptions, the report said.
Subsequently, all four GDs were processed and assigned for the gate-out role after completion of the assessment process. The detailed examination report shall be communicated upon finalization.
The Appraising Officers and DC/AC were involved in the processing of the said GDs.
Approval under Section 79(1)(b) of the Customs Act, 1969 was obtained through the system and was approved by ADC. However, no prior examination appears to have been conducted by the importer.
It is also relevant to note that these were the first EFS consignments of the said importer brought to AICT through Port Muhammad Bin Qasim-PMBQ. Previously, the importer’s consignments were reportedly being cleared from PMBQ. It has further been reported that the said consignments were shifted to AICT after a similar consignment was intercepted at PMBQ by the concerned Collectorate.
It has also been reported that seven (07) 40-foot containers pertaining concern of the said importer are lying at AICT, for which declarations have yet to Approval is therefore sought for examination of the said containers prior to clearance by the relevant Collectorate, as they may constitute relevant evidence in the matter already detected, it added.
It is further reported that the preliminary inquiry indicates the need to examine the role of the concerned DC, in the processing of the subject GDs as her present reputation regarding transparency in her official affairs is not sound. Moreover, the conduct of the relevant Appraising and Scanning officers also needs to be further inquired. The role of ADC is also to be further seen as initial inquiry into the matter has revealed that the said examination was rejected on his telephonic directions to the concerned DC, the report added.
Copyright Business Recorder, 2026
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