ISLAMABAD: Taking notice of a Business Recorder news item, Federal Tax Ombudsman (FTO) has strongly recommended Federal Board of Revenue (FBR) to take cognisance of mega fraud at airport and conduct a countrywide audit for the past three years of all sheds operating under M/s Gerry’s Dnata, regarding its import & export related activities.
According to an order issued by the FTO on Tuesday, Member Customs (Operations) should immediately direct the Collector of Customs (Airports), JIAP, Karachi would immediately proceed for suspension of the license of the said company against its shed operating at Karachi after serving a show cause notice (SCN) to the CEO of the shed operator and after affording them a hearing opportunity and on completion of the audit and proceedings may cancel their license to operate in Pakistan, if the charges stand established against them.
This recommendation is issued in exercise of the powers vested in this Office under the provisions of Sections 29 and 30 inter alia other Sections of the FTO Ordinance, 2000;
Over Rs23m seized goods ‘vanish’ from airport
FTO has also directed the Collector of Customs (Airports), JIAP, Karachi, to investigate the role of Customs officials involved in this mega scam and after conducting a fact-finding inquiry against the Customs staff and after affording them an opportunity of being heard, refer the matter to FBR for initiating necessary disciplinary action against them under the E&D Rules, 2020, as per provisions of law.
This is an own motion investigation initiated through exercise of jurisdiction, conferred under Section 9(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance) on the basis of a news clipping from Daily Business Recorder dated 02.10.2025 regarding a UAE-based cargo handler at Jinnah International Airport (JIAP), Karachi that is accused of orchestrating a massive theft of imported goods worth billions of rupees from Customs custody for the last 18 months, raising serious questions about potential collusion of their employees with customs officials.
The theft and evasion allegedly involved the illegal removal of high-value goods and their delivery to operators of “ghost companies” without payment of mandatory duties and taxes since March 2024 so far six consignments of expensive electronics have been removed clandestinely from the shed of this UAE based cargo handling company without payment of the leviable duty and taxes on the basis of forged and fake GDs and other documents, the machine numbers used in this mega fraud are taken from the previously processed, cleared and out of charged GDs of pharmaceuticals processed by some other cargo handler.
It has also been pointed out in the above referred news report that the importing companies are bogus with false details of their business addresses and other particulars etc.
FTO findings revealed that the FTO Office would like to appreciate the steps taken by Collector of Customs (Airports), JIAP, Karachi and the Deptt of Customs to identify this fraud, take cognizance of the situation and for arrest of few of the accused individuals; however, much more is required by the Deptt for complete eradication of such like frauds and mishaps in future. It is well considered view of this Office that all these happenings are not possible without the active collusion and connivance of the relevant Customs staff posted at the subject shed working under the Collectorate of Customs, JIAP, Karachi.
The cargo operator viz M/s Gerry’s Dnata is a license holder of the department of Customs under the provision of Customs Act 1969 and the provisions of sub-Chapter XIV (Terminal Operators under CCS) Customs Rules 548 to 556E; etc., issued vide SRO 450(1)/ 2001 dated 18.06.2001 and is accordingly bound to abide by the Customs Law, Rules, Regulations and the prescribed procedures made by the Customs department and their violation is tantamount to maladministration on part of Customs Department for not taking appropriate measures to control such criminal happenings by their license holder shed operator as this is not the first instance of its kind at Karachi Airport.
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