Customs Appellate Tribunal Islamabad has imposed a hefty penalty on Gerry D’nata and other airport services for fraudulent clearance of Helicopter parts, causing a loss of Rs. 152 million to the national exchequer.
According to documents, Customs Appellate Tribunal Islamabad members Judicial Muhammad Arif Khan and Member Technical Abdul Waheed Marwat in the Agha Khan fraud case imposed a Rs. 5 million penalty on Gerry D’nata, Rs. 1 million on Shaheen Airport Services and Rs. 1 million on Royal Airport Services on failing to discharge their duties in handing over goods to the authorized agent of M/s Agha khan without verification.
The document states that M/s Unique Enterprises in the name of M/s Aga Khan Foundation imported goods of description as “Helicopter Controller Boxes, Spectacle Frames, Helicopter ELT Units” vide 69 Goods Declarations and claimed the inadmissible benefit of 9903.
Whereas, the AFU Sheds (GHAS) namely M/s Gerry’s D’nata, M/s Shaheen Airport Services, and M/s Royal Airport Services had issued the Delivery documents for handing over the shipments respectively in collusion with Clearing Agents without verifying the One-Customs Goods Declarations that the shipments have been duly cleared by Customs or not, in violation of Section 32 (1) (2), 32 A, 79 read with Rule No. 556 (a) of Customs Rules 2001 issued vide SRO 450(1)/2001 dated 18.06.2001, punishable under section 156(1) (14). (14 A) & (43) of the Customs Act, 1969.
The M/s Agha Khan Foundation has disowned these shipments in its communication subsequently, Customs Collectorate, Islamabad lodged an FIR on account of fraudulent clearances and missing One Customs GDs records against Customs staff, Shed staff, and Clearing Agent.
As per 9903, the benefit is admissible only if exemption certificates are being issued by EAD, subject to concurrence from FBR. Moreover, as per Rule 29 of CGO 12/2002, Additional Collector is the competent authority to approve the said exemption.
The document reveals that the importer/clearing agent did not fulfill above mentioned requirements; hence, the exemption is inadmissible as per data of One-Customs retrieved from M/s PRAL.
In view of the above facts, it is clear that M/s Unique Enterprises clandestinely in connivance with Shed staff, deliberately and willfully committed the act of fraudulent clearances of various shipments of the helicopter parts as per Airway bills imported in the name of Aga Khan Foundation thus, evading the amount of duty and taxes Rs. 152.5 million.
The Collector of Customs (Adjudication), Islamabad in its order directed M/s Capital Cargo Services to pay the evaded amount of duty and taxes of Rs. 152.5 million besides Rs. 10 million penalty imposed on Gerry’s D’nata, Rs. 2 million on Shaheen Airport Services and a penalty of Rs. 2 million on Royal Airport Services.
In addition, the Adjudicating authority recommended the Licensing Authority to initiate the process of revoking their license as they have failed to discharge their responsibility as mentioned in Customs Rules, 2001.
While exonerating M/s Aga Khan Foundation from the charges leveled in the show cause notice However a warning is issued to them as due diligence on their part could have avoided this scam. M/s Aga Khan Foundation Logistics and Clearance staff should accompany the clearing agents in all future deliveries of their consignments as is done by other INGOs/Diplomatic Mission.
However, a final warning is issued to the ground holders to ensure avoid this type of laxity, which has caused 12 colossal revenue to the national exchequer.
The collector adjudication mentioned in its order that the scam of such huge nature was committed under the nose of many law enforcement agencies, where tons of goods were fraudulently cleared over a period of one year in a high-security customs area is thought-provoking.
The scam could not have occurred without the involvement of Customs officials and PRAL staff posted at AFU, Islamabad, Collectorate of Customs, Islamabad.
As a tax abiding citizen of Pakistan, I must admit that depending on imports for tax revenue and that even on stuff that’s not made in Pakistan, is most ludicrous.
And what will the helicopters used for? Providing aid in remote areas. Reducing travel time. Increasing productivity.
The bureaucratic mindset has destroyed Pakistans economy. These items should be tax free and FBR should focus on direct taxation