Major customs fraud unearthed at Mughalpura Dryport

LAHORE:A major customs fraud has been unearthed by the Collectorate of Customs Appraisement (East) at the Mughalpura Dryport in Lahore, where an attempt to evade government revenue worth Rs6.9 million was thwarted.

Authorities have filed a criminal case (FIR No. 01/2025) against the importer M/s Mamund Traders and the clearing agency M/s Al-Noor, after uncovering deliberate misdeclaration and smuggling in a consignment imported from China.

The FIR was registered under Section 161 of the Customs Act, 1969, following a thorough investigation. The importer, Mamund Traders, holds NTN number A981232-7 and is based at Al-Shareef Centre on McLeod Road, Lahore. Their clearing agent, Al-Noor, is also implicated. A total of eleven individuals, including the CEOs, directors, and firm representatives, along with private individuals identified as Aziz Ahmed Malik, Waqar Ahmed, and Syed Bilal Jiaz etc. have been named in the case. Their complete identification details, including CNIC numbers and addresses, have been listed in the FIR.

The fraud was discovered during a physical inspection of a 40-foot container (No. MSCU7867031) at the dryport on March 26, 2025. The consignment, declared to contain 1,506 cartons of assorted goods, was found to be misdeclared, undervalued, and included several undeclared items. Only 1,500 cartons were actually present, and there were significant discrepancies in the weight and contents of the shipment.

Investigators found that items such as lip gloss bottles had been falsely labeled as “empty packing,” and fountain pens with metal caps were incorrectly declared as “pen parts.” Stainless steel vacuum flasks were misrepresented as “plastic water bottles,” and marble cutting blades were listed under an incorrect PCT code, all in a calculated effort to avoid higher customs duties.

Additionally, several high-value automotive components including fuel injection pumps, ignition coils for Toyota vehicles, and self-starter carbon brush holders were not declared at all. These items, had they been properly declared, would have significantly increased the tax liability on the consignment.

The total value of the undeclared and misdeclared goods was calculated at Rs8,733,420, while the estimated loss to the national exchequer in terms of evaded customs duty, sales tax, and income tax was Rs6,968,139.

The accused have been charged under various sections of the Customs Act, including Sections 32 for false declarations, 32A for smuggling, 79 for fraudulent import practices, and 209 for abetment. Additional charges have also been filed under the Sales Tax Act, 1990, and the Income Tax Ordinance, 2001 for tax evasion and non-disclosure of taxable items. The FIR had been forwarded to the Special Judge Customs, Taxation & Anti-Smuggling in Lahore for further legal proceedings. The seized goods were held as evidence at the Railway Godown of the Mughalpura Dryport.

A senior customs official commented that this was a calculated and organised attempt to defraud the government, involving coordination between multiple parties. He stated that strict action will be taken to ensure recovery of the evaded revenue and to deter future attempts at such smuggling operations.

This case serves as a reminder of the persistent challenges faced by customs authorities in Pakistan. However, the deployment of modern digital monitoring systems like WeBoc is proving instrumental in identifying and intercepting such fraudulent activities in real time.