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Directorate General Intelligence & Investigation of the Federal Board of Revenue (FBR) has seized two consignments, comprising five containers and valuing more than Rs. 31 million, for evasion of duty drawback.
The seizure has been made following a credible information received by the Directorate General Intelligence & Investigation about the involvement of M/s Al-Fareed Fabrics (Pvt), Ltd, Faisalabad and M/s Pacific Textile Mills, Karachi in the dubious exports of Polyester Cotton Bed Sheets, Polyester printed fabrics and cotton dyed terry towel / Polyester bathrobes etc, by misdeclaring its description, classification, value and weight in the guise of export of Valeur Fabrics and Cotton Viscose Fabrics which are high rebateable items.
On receiving the tip-off, the staff of the Regional Office, Karachi, intercepted three 40 ft and two 20 ft containers declared as printed Valuer Fabrics and cotton viscose fabrics under duty draw back claim in terms of SRO 209 (I)/2009, dated 5.3.2009 exported by M/s Al-Fareed Fabrics, (Pvt) Ltd, Faisalabad and M/s Pacific Textile Mills, Karachi cleared from MCC, Export, (PaCCS), Custom House, Karachi, under computerized system, for export to UAE. The examination of the five containers was conducted on 16.11.2010, in association with the examination staff of MCC (PaCCS), PICT, Karachi in presence of the witnesses, which resulted in the recovery of Polyester Cotton Bed Sheets, Polyester printed fabrics and cotton dyed terry towel / bathrobes etc. It is pertinent to point out here that not a single piece of Valeur Fabrics, as declared in the Goods Declaration, was found in the aforesaid five containers during examination.
Both the consignments, consisting of five containers and valuing more than Rs. 31 million, have been seized against proper documentation. The incidence of undue duty drawback, in the dubious export of five containers, has been worked out to be Rs. 733,314 (approximately) and the amount of Sales Tax refund on packing material, dyes etc and R&D subsidy by State bank of Pakistan are being worked out. Initial investigation has also revealed that the exporting firms were previously involved in obtaining illegal duty draw back by defrauding the Customs authorities. The loss caused to the national exchequer by the exporting firms is being ascertained. FIRs against the said two exporting firms have been lodged with the Honorable Court of Special Judge (Customs & Taxation), Karachi. Moreover, pending rebate and sales tax refund claims of these exporters will remain blocked till completion of investigation of the scam by the Directorate General.