Pakistan Customs has foiled an alleged attempt to evade more than Rs683 million in duties and taxes through the misdeclaration of imported goods at Karachi Port. Officials intercepted two containers carrying cigarette paper, acetate tow, foreign perfumes and mineral water that had reportedly been declared as printed and misprinted paper rolls to secure clearance at lower duty rates.
Two Containers Intercepted at Karachi Port
The Directorate General of Transit Trade conducted the operation following information shared by the Anti-Narcotics Force. A joint examination of the containers uncovered goods that did not match their declared descriptions.
The seized consignments included:
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4,934 kilograms of cigarette paper
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47,273 kilograms of acetate tow
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Perfumes from various international brands
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Mineral water
Laboratory testing confirmed that the seized paper was uncoated cigarette paper used in tobacco manufacturing, while the acetate tow was identified as cellulose acetate used in cigarette-filter production.
Declared Value Rises from Rs1.8 Million to Over Rs106 Million
According to the case record, the two containers were initially declared at a combined value of approximately Rs1.8 million.
Following a detailed examination, the assessed value increased to more than Rs106 million. The actual duties and taxes payable exceeded Rs684 million, while the alleged potential revenue loss was estimated at more than Rs683 million.
Officials said the alleged misdeclaration could have allowed the importers to obtain clearance by paying substantially lower duties and taxes.
Cigarette Paper Is a Restricted Import
Cigarette paper is classified as a restricted import under Pakistan’s Import Policy Order 2022. Its import is permitted only for eligible entities that meet the prescribed conditions.
Authorities suspect that the goods were deliberately declared as printed paper rolls and sheets to conceal their actual nature and classification. The investigation is examining possible violations of customs and other relevant laws.
Criminal Case Registered as Investigation Expands
The Directorate General of Transit Trade has registered a criminal case in connection with the alleged tax evasion attempt.
Investigators are examining whether other consignments may have been cleared using a similar method. They are also working to identify individuals who may have facilitated or benefited from the suspected transactions.
The case has drawn attention to the movement of acetate tow, particularly amid concerns from officials about the sharp decline in declared imports of the material despite rising cigarette production.
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Customs Authorities Face Scrutiny Over Import Misdeclaration
The seizure highlights the challenges faced by Pakistani authorities in detecting the misdeclaration of restricted and heavily taxed goods. Customs officials are continuing their investigation to establish the roles of the parties involved and determine whether the suspected method was used in earlier shipments.
The allegations remain subject to investigation and legal proceedings.
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