The Federal Board of Revenue (FBR) has imposed Rs. 2.7 billion in penalties on M/s Gerry’s Dnata (Pvt) Ltd after adjudication proceedings confirmed its involvement in a large-scale customs fraud involving the illegal clearance of imported electronic goods.
The case, uncovered by the Collectorate of Customs (Airports), Karachi, revealed that high-value consignments were removed without proper customs clearance by bypassing official procedures.
Investigators found that airway bills were concealed, index numbers were deleted, and fake gate passes were generated through the company’s internal system, making consignments effectively invisible within the customs tracking framework.
The scheme allowed goods to be removed without filing Goods Declarations (GDs) or paying applicable duties and taxes. Authorities also ordered recovery of Rs. 221 million in unpaid duties and taxes.
The fraud first came to light when customs officials intercepted suspicious consignments at Gerry’s shed containing luxury electronics, including laptops, smartphones, tablets, gaming consoles, and other high-value items. These were being cleared using forged gate passes.
Further investigation revealed at least five additional consignments had already been cleared through the same method. All shipments originated from UAE-based suppliers and were allegedly concealed from the WeBOC customs clearance system.
Adjudication orders concluded that the irregularities were not isolated incidents but pointed to systemic failures, weak internal controls, and institutional involvement by the terminal operator.
Authorities also cited obstruction during the investigation, including failure to produce CCTV footage and system logs required under the Customs Act. Officials said repeated notices were ignored, and some records were not provided as mandated under Section 211 of the Customs Act, 1969.
Eight individuals have been arrested in connection with the case, including five employees of Gerry’s Dnata. Confessional statements were recorded during the investigation.
One female employee reportedly admitted issuing fake gate passes on supervisory instructions, while a cargo agent confessed to the existence of an organized network involved in the manipulation of cargo records and systematic pilferage of imported goods.
Investigators also recovered counterfeit customs stamps allegedly used to generate fraudulent gate passes.
