Pakistan Foils Duty Evasion Attempt

Pakistan’s Directorate General of Transit Trade has foiled an alleged attempt to evade more than Rs683 million in duties and taxes through misdeclared imports at Karachi Port, after intercepting two containers carrying cigarette paper, acetate tow, perfumes and mineral water.

Goods declared as paper rolls were reassessed at over Rs106 million

According to reports, the consignments were declared as printed and misprinted paper rolls and sheets to secure clearance at lower duty rates. The declared value was about Rs1.8 million, but detailed examination raised the assessed value to more than Rs106 million. Actual duties and taxes payable were stated to be above Rs684 million, while the case record put the alleged duty and tax evasion at more than Rs683 million.

The seized goods included 4,934 kilogrammes of cigarette paper and 47,273 kilogrammes of acetate tow, along with assorted international brand perfumes and mineral water.

Joint examination linked the goods to cigarette manufacturing materials

The operation followed information shared by the Anti-Narcotics Force with customs authorities. A joint examination confirmed the presence of cigarette-manufacturing materials, and the Custom House laboratory identified the seized items as cellulose acetate tow and uncoated cigarette paper.

Cigarette paper is a restricted import under Pakistan’s Import Policy Order 2022 and can only be imported by eligible entities meeting prescribed conditions.

Case registered as investigators examine possible wider pattern

The Directorate General of Transit Trade has registered a criminal case over the alleged misdeclaration of the description, classification and quantity of imported goods, along with suspected violations of customs and other relevant laws.

Sources said investigators were checking whether other consignments had previously been cleared through the same alleged method and were trying to identify people who may have facilitated or benefited from the transactions.

The seizure has also raised questions about the movement of acetate tow, a key raw material used in cigarette-filter manufacturing. Officials pointed to the near cessation of declared imports of acetate tow over the past two years despite an increase in cigarette production, raising concerns about possible illicit supply chains or imports concealed through false declarations.

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