Massive under-invoicing scam unearthed in imports

Directorate of Customs Intelligence has unearthed scam worth Rs437 million

KARACHI:

The Directorate of Customs Intelligence has unearthed a huge loss to the national kitty due to under-invoicing in the imports of networking equipment valued at Rs437 million from Holland. Subsequently, legal action has been initiated against the importer, customs clearing agent, and other suspects, on charges of money laundering and tax evasion.

According to sources, the directorate received credible information indicating the involvement of M/s Johnsco Airfreight Unit in the import of networking equipment through the Karachi airport.

The company was not only engaged in under-invoicing but was also found to be transferring the actual worth of networking equipment to the consignor of the import via unofficial financial channels. It has further transpired that M/s Johnsco had been importing similar consignments over the past two years.

The directorate obtained information about these consignments from various sources, including airport service providers in Holland, relevant freight forwarder, and the airline. Upon discovering the actual prices of these products, it became evident that M/s Johnsco, a Pakistani import company, had submitted false and undervalued invoices from M/s Expeditors International, a Dutch exporter.

The investigation further unearthed that M/s Johnsco had been involved in the transfer of foreign exchange through unofficial channels to the exporting company sending the shipments. Despite the actual value of the consignments being Rs437 million, the importer involved in the irregularity had declared their value as only Rs15 million in the goods declaration.

Published in The Express Tribune, September 28^th, 2023.