On 22nd April 2025, the Collectorate of Customs in Gilgit Baltistan, Gilgit, registered a First Information Report regarding a case of misdeclaration and attempted evasion of customs duty and taxes. The report was filed by Mr. Naeem Sardar, Inspector (Examination Officer) at Silk Route Dry Port (SRDP) Sost, involving the importer M/s Saadat Traders.
The key individuals named include Syed Ali Abbas, the proprietor of M/s Saadat Traders, and his representatives and partners, Syed Sherzad Hussain, Mazahir Hussain, and Muhammad Athar. The occurrence took place on 12th February 2025, when the importer submitted Goods Declaration No. GBSI-HC-1630-12-02-2025.
During the examination of the consignment on 8th April 2025, a significant discrepancy was found between the declared goods and the actual goods present. The importer had declared the goods as Walnut in Shell with a quantity of 15,000 kgs under PCT heading 0802.3100 and a unit price of US $0.50 per kg, with an estimated value of Rs. 2,141,062.
However, upon examination, only 1,040 kgs of Walnut in Shell were found, with an actual unit price of US $0.90 per kg, and the duty and taxes amounted to Rs. 1,199,58. In addition to this discrepancy, a large number of undeclared items were discovered, including 11,100 pieces of artificial leather waist belts, 400 pieces of children’s umbrellas, 1,560 pieces of umbrellas, 600 kgs of artificial flower material, 560 kgs of motor capacitors (20 UF 450VAC), 720 kgs of motor capacitors (12 UF 450VAC), 7,820 pieces of gents and boys trousers branded as Adidas and North Face, and a substantial quantity of 31,955 kgs of cellulose acetate tow. The total value of these goods was determined to be Rs. 194,523,9406, with corresponding duty and taxes amounting to Rs. 865,978,97.
The misdeclaration was an attempt to evade legitimate customs duty and taxes. It involved incorrect physical descriptions, undeclared items, and false PCT headings and quantities, which are clear violations of several sections of the Customs Act, 1969, and the Imports and Exports (Control) Act, 1950. Specifically, these offenses fall under Sections 2(s) (read with Serial 52 of SRO 566(1)/2005), 32, 32A, 79(1), and 192 of the Customs Act, 1969, punishable under various sub-clauses of Section 156(1), and read with Section 3 of the Imports and Exports (Control) Act, 1950. The goods were seized under Section 168 of the Customs Act, 1969.
Furthermore, during the examination, samples were collected for laboratory analysis to confirm the actual composition of the declared polyester staple fiber. The Customs House Laboratory in Faisalabad confirmed that the sample was in fact cellulose acetate tow, not polyester staple fiber. The representative of the importer, Syed Sherzad Hussain, was present during this process.
This deliberate misdeclaration and the presence of undeclared goods highlight the seriousness of the offense. Moreover, it has been discovered that the same importer previously cleared seven other consignments of miscellaneous goods, part of which were also declared as polyester staple fiber. It has been recommended that these previous consignments, totaling 77,000 kgs, be thoroughly investigated to determine whether similar misdeclaration or fraud occurred in those cases.
