Customs busts e-commerce scam at Jinnah International

Firm was importing items on which Rs2.85m in duties was to be paid under the head of printed material

KARACHI: For the first time, the Pakistan Customs on Saturday busted an e-commerce scam in Karachi.

According to officials of the Customs, credible information was received that Paradise E-Commerce Solutions, a Karachi-based e-commerce company, was engaged in fraudulent clearance of high dutiable goods in the garb of magazines and printed matter at the Air Freight Unit, Immediate Clearance Group (ICG) at Jinnah International Airport.

Reacting to the information, a team was constituted by Airport Additional Collector of Customs Sanaullah Abro, comprising Deputy Collector Shoaib Raza and staff of the ICG to confirm the information.

On May 19, a consignment declared as magazines and printed material consisting of 51 packages weighing a collective 690 kilogrammes was imported by Paradise E-Commerce Solutions Karachi from the Darlington Postal Company in the USA was intercepted. The importer got the delivery order through ground handling agent Gerry's Dnata for clearance.

Raza examined the documents of the shipment and found strong evidence of mis-declaration. He stopped the consignment from delivery at the lCG gate and ordered a detail examination.



The Pakistan Customs spokesperson said that on physical examination of the goods it was revealed that the shipment did not contain any magazines or printed material and instead contained dutiable goods such as cosmetics, food supplements and vitamins, purses and various household and electronic goods. One heavy duty 3D printer, which is importable after submission of a no objection certificate from the interior ministry, was also found. The value of the goods seized is Rs3,391,514 and the taxes and duties on the goods amount to Rs2,854,943.

The consignment was seized on May 22, under Section 168(1) of the Customs Act, 1969. An FIR was also lodged before the customs and taxation judge against the culprits. Two persons involved in the scam -Najib Markatiya, the owner and proprietor of Paradise E-Commerce Solutions, Karachi, and Rafique Ahmed Siddiqui, the clearing incharge of the firm - were arrested by Customs. Important records have also been recovered from the possession of the accused persons and investigations have been initiated. The role of other associates at the company is being determined.

The spokesperson said that during the course of the investigations, it was revealed that the company was involved in massive fraud by clearing high value dutiable goods in the garb of newspapers and magazines. Another person, Waseem Ahmad, the operations manager of company, has also been arrested. The records of 25 other shipments has also been retrieved involving duty and taxes so far estimated to be more than Rs50 million. However, the final amount will be determined on completion of the inquiry, he added.