Export Facilitation Scheme: Customs Probes Alleged Misuse in Karachi
The Export Facilitation Scheme has come under investigation after the Collectorate of Customs (Enforcement), Karachi, detected an alleged large-scale misuse of the facility. The case has triggered an inquiry into senior customs officials, including an Additional Collector and a Deputy Collector of the Collectorate of Customs Appraisement-West, Karachi. According to officials, importers allegedly misdeclared goods to evade customs duties and bypass import restrictions.
Customs Detects Alleged Misdeclaration
The Collector of Customs (Enforcement), Karachi, submitted an incident report to the Federal Board of Revenue (FBR), highlighting the suspected misuse of the scheme. The report also pointed to the possible involvement of concerned customs officials.
According to the documents, importers declared the consignments as compressor scrap, aluminium condenser scrap, iron and steel remeltable scrap, and recoverable copper. However, customs authorities received credible intelligence suggesting the cargo descriptions were false. Therefore, officials blocked all four consignments at the AICT terminal before they left the port, even though the Collectorate of Customs Appraisement-West had already cleared them.
A physical inspection revealed that the containers mainly carried slightly used and almost new Midea-branded window air conditioners, portable air conditioners and dehumidifiers from Thailand. Only a small quantity of compressor scrap matched the declaration.
Inquiry Underway
The Export Facilitation Scheme allows exporters to import raw materials and industrial inputs without paying customs duties upfront, provided the goods are used to manufacture products for export. The policy aims to reduce production costs and boost Pakistan’s exports.
However, officials say some importers may misuse the scheme by falsely declaring commercial or restricted goods to avoid taxes. As a result, Customs has launched a formal inquiry to determine whether any officials facilitated the alleged violations. The investigation will examine the clearance process and fix responsibility where required. Authorities say legal action will follow if the inquiry finds evidence of negligence or misconduct.
