The Directorate of Customs Post-Clearance Audit South, under the Federal Board of Revenue (FBR), has uncovered a major fraud worth Rs2.4 billion involving evasion of duties and taxes under the Manufacturing Bond, Duty and Tax Remission for Exports (DTRE), and Temporary Import and Export Facilitation Scheme.
The fraud was traced to Qazi Sanjrani Enterprises, which imported a large quantity of raw and packaging materials intended for cement manufacturing under the export exemption schemes. However, investigations revealed that the company illegally sold these goods in the local market.
According to Directorate of Customs Post-Clearance Audit South Director Shiraz Ahmed, the Post-Clearance Audit South conducted audit of the company on the basis of Customs resource tax data. He said that irregularities were also confirmed during the physical inspection of the factory.
Around 463,334 metric tons of clinker was imported, but only 62,000 tons were recovered from the factory. During the inspection, it was identified that 396,000 metric tons worth Rs3.3 billion were missing from the factory, indicating that the clinker imported by the company for export products was sold in the local market. Ahmed said that the company failed to provide any reasonable explanation regarding the missing clinker stock. The company's claim about the presence of 15,000 tons of clinker reserves at Gwadar Dry Port also proved to be false.
He said that the company fraudulently benefited from export exemption schemes and made large-scale imports. It was found involved in evasion of duties and taxes by taking advantage of various exemption facilities for imports for exports.
He said that despite getting the exemption, the company failed to manufacture and make exports. It evaded duties and taxes worth Rs369 million through manufacturing bonds.
Besides, the company was also found involved in evasion of Rs91 million through temporary import facilities under SRO 492. It evaded duties and taxes worth Rs1 billion through the misuse of Export Facilitation Scheme. The firm evaded Rs222 million in duties and taxes through the DTRE and Rs676 million through the illegal transportation and sale of imported goods.
He said that the Customs PCA has registered a case against the company after detecting the fraud that has been ongoing since 2020 and teams have been formed to arrest the accused.
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