KARACHI: Federal Board of Revenue (FBR) has imposed a penalty of Rs2.7 billion ($9.7 million) on one of the country’s largest air cargo terminal operators for its role in a systematic theft ring that allowed smugglers to bypass customs and remove high value electronics from the Karachi airport without paying duties, officials said
The Federal Board of Revenue issued five adjudication orders against M/s Gerry’s Dnata (Pvt.) Ltd., the cargo handler at Jinnah International Airport.
An investigation uncovered an organized network that used fake gate passes and manipulated manifests to make consignments “invisible” inside the customs clearance system.
Investigators found that the scheme involved the deletion of index numbers and concealment of airway bills, enabling the removal of goods without the filing of Goods Declarations or payment of government taxes.
Among the items smuggled were laptops, iPhones, iPads, MacBooks, PlayStation consoles, memory cards, and other luxury electronics originating from UAE based suppliers.
The fraud was discovered when customs officials intercepted consignments being removed from the Gerry’s shed using forged documentation.
Furthermore the investigation revealed that at least five additional shipments had already been illegally cleared through fake gate passes generated from the company’s own computerized system.
“The scam was not an isolated act of a few rogue employees,” the adjudication orders stated, “but reflected systemic failure, absence of internal controls, and institutional complicity on the part of the terminal operator.”
Customs authorities arrested eight people, including five Gerry’s Dnata employees.
One arrested female employee told investigators that she issued fake gate passes on her supervisors’ instructions, while a cargo agent confessed to the existence of a yearlong network engaged in manifest manipulation and cargo pilferage.
Investigators also recovered counterfeit customs gate officer stamps used to fabricate the passes.
The Federal Tax Ombudsman has launched its own investigation into the matter.
In addition to the Rs2.7 billion fine, the company was ordered to pay Rs221 million ($793,000) in recovered duties and taxes.
Officials said Gerry’s Dnata obstructed the investigation, failed to produce CCTV footage and system logs required under Section 211 of the Customs Act, and continued to protect delinquent staff.
