Daily Times

KARACHI: The Director General of Intelligence and Investigation-FBR (Customs-Enforcement) has booked the owner of M/s. Diamond Fabrics in an FIR for committing the offence of mis-declaration and fiscal fraud worth Rs. 190 million on Sunday.

According to details given by officials of Custom I&I, the Director General consistently received complaints from All Pakistan Textile Manufacturers Association (APTMA) that certain unscrupulous elements in the trade were exploiting export incentive regime/SROs. Ms. Samina Taslim Zahra, the Director I&I Enforcement, Karachi received credible information that M/s. Diamond Fabrics, Faisalabad (NTN-2470659), operating as Importer / Exporter Manufacturing Unit have been involved in the misuse of the facility.

M/s. Diamond Fabrics was reportedly removing finished imported fabrics (raw-materials) meant for use in the manufacture of textile articles for subsequent export from the manufacturing bonded premises without payment of duty and taxes.

They would then sell these in the local markets to cover up the illegal removals. The finished goods and fabrics purchased from local markets were then used in export shipments.

On the consequences of the enquiry, it was established that M/s. Diamond Fabrics filed a Goods Declaration (GD) for exporting goods to the United Kingdom – goods described as 100% polyester print and duvet cover, fitted valance sheet and bolster 100-80 GSM.

To check the veracity of the declaration, the consignment was blocked online. It was then jointly examined and samples for testing were collected in the presence of an Exporter or Clearing agent, and representatives of the Terminal Operator on 11.04.2017.

Later, the lab test report categorically confirmed that the fabrics being exported were made up of cotton and blended fabrics. Thus, the accused proprietor of M/s. Diamond Fabrics Faisalabad, has committed the offence of mis-declaration and fiscal fraud under Sections 18, 19, 32(1) & (2), 32(A), 79(1), 86, 97, 98 and 116 of the Customs Act 1969. The detained consignment, liable for confiscation, has been seized under
Section 168 of the Customs Act, 1969.

The incidence of evaded duty and taxes on illegally removed goods i.e. 845,013 kgs of 100% polyester fabric, has been worked out as Rs.191,719,201/-. The amount of Rs.85,717,715/- has been recovered.

A FIR has been lodged on 21.04.2017 and further investigation is underway. However, no arrest has been made so far.