A Thousand Avenfields

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Centre for Investigative Journalism (CIJ) Pakistan succeeded to prove its reports regarding large-scale green channel smuggling as the Honourable Chief Justice of Pakistan Mr Justice Mian Saqib Nisar took notice of this mega scam and copy of the Orders sent to the Honourable Chairman NAB Mr. Justice (R) Javed Iqbal for necessary action. After CJP’s notice, DG Customs Intelligence, in his report submitted to the then FBR chairman Tariq Pasha, admitted that green channel facility has been ‘mercilessly abused’ by some syndicates in connivance with a few corrupt customs officers. Another FBR official admitted that almost 10 million containers have been cleared through green channel which shows the exact scale of this scam. It is actually a scam equal to 1000 Avenfields. Customs Today has been reporting on abuse of green channel since past many years. An appeal regarding Rs 1000 billion green channel scam was repeatedly published in the newspaper by senior journalist Asad Kharal and then the complaint was lodged before the Chief Justice in Supreme Court’s Lahore registry. After this complaint, the CJP took notice of the issue and ordered the quarters concerned to submit reply within 10 days. Earlier, Customs Today reported extensively on misuse of green channel facility at Karachi ports where mega brands like Mobilink and QMobile were reported to be grossly abusing green channel facility with connivance of Customs staff. Customs Today exposed mega smuggling scam of Digicom Company (Q-Mobile) as the company cleared more than 750 containers through green channel. Smuggling of dual use precursor acetic anhydride, dangerous chemicals, liquor and electronics items was exposed and reported. Then, Customs Today published several reports about betel nuts smuggling worth billions of rupees through ports at Port Qasim and Appraisement East Collectorate. These reports led to multiple raids, tens of FIRs and recoveries of illegally cleared goods worth billions of rupees. Notwithstanding, these actions were only a token in nature and a drop in ocean whereas much more needs to be unearthed. Customs Today also published investigative reports about changing of strategies by green channel smugglers as they started clearing illegal goods through yellow channel, TP, switch B/L and bonded warehouses. The Honourable Chief Justice and the Honourable NAB chairman have already taken notice of the green channel illegal clearances like other notices of mega corruption cases in Pakistan and even Nawaz Sharif was disqualified as prime minister in a historic decision announced in the Panama Papers case. Now, Rukhsana Yasmin has taken charge of FBR chairperson and she has good repute and past corruption-free record. It is hoped she will take a prompt action against abusers of green channel to save billions of rupees losses to the exchequer and precious lives of millions of Pakistanis.In fact, purpose of writing this book is to expose Rs 1000 billion mega scam of customs green channel and appeal the Honourable Chief Justice of Pakistan and Honourable Chairman NAB to take strict action against the culprits to save billions of rupees of the nation.

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aretaker Prime Minister Nasirul Mulk appointed Rukhsana Yasmin, a BS-22 officer, as the new chairman of Federal Board of Revenue (FBR) and transferred and posted former FBR chairman, Tariq Mahmood Pasha, as Secretary Statistics.

Sources said after taking notice of mega corruption cases including Rs 1,000 billion green channel illegal clearances by Chief Justice Mian Saqib Nisar and Chairman NAB Justice (r) Javed Iqbal, the former FBR chairman was facing tough situation as DG Intelligence Shaukat Ali admitted ‘merciless misuse’ of green channel facility but other top FBR and Customs of\icials were giving ‘all is well’ report. The issue became so hot that it reached to the PM House after CJP’s notice and the PM had to take this decision of transfer of Tariq Pasha. It is expected that action could be taken against other high of\icials of FBR and Customs Dept in green channel mega scam.

Sources said new FBR Chairman Rukhsana Yasmin is a very honest of\icer and she always worked for betterment of FBR through enhanced efforts for increasing revenue collection.

It is expected she would take notice of mega corruption cases including Rs 1000 billion green channel mega scam.

Former Prime Minister Shahid Khaqan Abbasi had taken notice of rampant corruption at FBR and now the CJP and NAB Chairman took notice of

green channel mega scandal.

Sources said DG Shaukat Ali has recently admitted ‘excessive misuse’ of green channel facility with alleged connivance of customs staff and recommended urgent action to arrest haemorrhage of state revenue. After DG’s shocking admission, genuine importers expect prompt action by new FBR chairman against green channel fraudsters to avoid billions of rupees revenue losses.

It is pertinent to mention here that it was only Customs Today which exposed green channel mega scandal upon which the CJP took notice and ordered the FBR authorities including Member Customs Zahid Khokhar, Chief Collector Appraisement South Abdul Rasheed Sheikh and DG Customs Intelligence and Investigation Shaukat Ali to submit reply within 10 days. The court associate had sent letter to Chairman NAB for necessary action. Ms. Rukhsana Yasmin is the senior most officer of the Federal Board of Revenue (FBR) having experience of working both in Pakistan Customs Service (PCS) and Inland Revenue Service (IRS). Rukhsana Yasmeen belongs to 11th Common Course. On Customs side she has worked in different field formation as Collector, Additional Collector, Deputy Collector and Assistant Collector for more than 25 years. She opted to join new service group IRS in 2010. She was promoted to Grade-22 in 2016.

In IRS, she served as Commissioner, Chief Commissioner and Member of Federal Board of Revenue.

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CIJLODGESCOMPLAINTTOCHIEF JUSTICE AGAINSTGREENCHANNELSCAM

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NAB STARTS INQUIRY

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CHIEF JUSTICE TAKES NOTICE OF GREEN CHANNEL MEGA SCAM

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ederal Board of Revenue Member Inland Revenue (Policy) and Spokesperson Dr. Muhammad Iqbal said that if any officers and staff members of customs service are found involved in misuse of green channel facility, FBR will take stern action against them. During an interview with Customs Today, he said that FBR ordered S ecretary Enforcement to investigate the matter and use all available resources to curb the misuse of Green Channel. FBR has submitted a detailed report in Supreme Court regarding the use of facility of green channel. “We are closely monitoring this matter. Member Customs Zahid Khokhar assigned a special task to check that how this facility is being misused and give recommendations how FBR can effectively control green channel facility to avoid its misuse,� he added. He said green channel issue is now in Supreme Court and the matter is sub-judice, therefore, I cannot give any opinion, whatever court will direct to FBR we will implement it without any delay. He said date of amnesty scheme will not be extended because this scheme was approved by the parliament under amnesty law and only parliament can extend the date but the parliament has been dissolved. Dr. Iqbal said FBR gets historic success regarding amnesty scheme and more than one trillion rupees assets have been declared to whiten the money after paying Rs53 billion of taxes. Our target is Rs 100 billion and I hope that we can achieve this target. He also mentioned that many people from the country and outside the country are asking to extend the date of amnesty scheme. We have forwarded the recommendations to the caretaker government that this scheme should be extended for few days. He stated FBR is struggling hard for achieving the revenue targets of current financial year. Replying a question about the checking of asset statements of election candidates he said when election commission will forward it to FBR we will examine and compare with their last statement of assets and deal with the issue as per law. He said under the agreement with Organization for Economic Cooperation and Development (OECD), the bank will start sharing data of Pakistani citizens’ bank accounts from October this year with 104 countries including Great Britain, America, France, Switzerland, Germany and rest of the other European countries. He said that matter of tax related prepaid cell card is still under consideration and no proposal has been finalized yet.

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ustoms Today succeeded to prove its reports regarding green channel smuggling as Chief Justice of Pakistan Mian Saqib Nisar took notice of the issue and Directorate General Customs Intelligence & Investigation (I&I) admitted that green channel facility has been mercilessly abused by some syndicates in connivance with a few corrupt customs officers.

Director General Customs I&I Shaukat Ali gave full weight to the complaint to the extent that the green channel facility at the ports has been “excessively misused” and recommended urgent action to arrest haemorrhage of state revenue.

This complaint was submitted by senior investigative journalist Asad Kharal to Chief Justice Mian Saqib Nisar and repeatedly published in Customs Today newspaper against green channel illegal clearances worth Rs 1000 billion.

In a report submitted to FBR Chairman Tariq Mahmood Pasha after Chief Justice Mian Saqib Nisar took notice of

the complaint of large-scale misuse of green channel facility and ordered the FBR Member Customs, Chief Collector Abdul Rasheed Sheikh and DG I&I to submit reply within 10 days, the Directorate General Customs Intelligence put up total blame on the Federal Board of Revenue (FBR) and the Customs Department while con\irming ‘merciless’ misuse of green channel facility with support of a few customs of\icials.

After CJP’s notice, FBR advised Directorate General Customs Intelligence to submit its report. As per report, Directorate General Customs Intelligence & Investigation (I&I) placed on record that Green Channel facility has been callously abused by some syndicates of unscrupulous fraudsters and the possibility of connivance of few customs officers cannot be ruled out. The above comment emanates from the Directorate General’s experience of detection of Green Channel related cases and adverse reaction of some officers/officials in Customs hierarchy. The Directorate General also mentioned in the report that strong recommendations of placing under suspension

some Customs officers/officials suspected to be involved in facilitating the misuse of Green Channel facility repeatedly made by the Directorate General have been ignored by FBR. Thus, the manipulators inside the department do not feel discouraged enough to refrain from extending their helping hand to the fraudsters.

In addition to the above, whenever the Directorate General detected cases of misuse of Green Channel in the recent past, collectorates particularly MCC East Karachi, MCC West Karachi, MCC Port Qasim and MCC Appraisement Lahore have reacted sharply against the action taken by the Directorate General of Customs Intelligence & investigation and attempted to protect the fraudsters.

Directorate General Customs Intelligence & Investigation notes that non-action on part of FBR and adverse reaction of collectorates practically placed hurdles in the way of the Directorate General Customs Intelligence & Investigation to effectively check the misuse of the green channel facility at ports.

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ustoms Today extensively covered and reported since past few years the misuse of green channel facility and published repeatedly an appeal of senior investigative journalist Asad Kharal to the Chief Justice Mian Saqib Nisar and the NAB chairman Justice (r) Javed Iqbal to take notice of Rs 1000 billion green channel illegal clearances.

The Chief Justice took notice of the complaint, as Asad Kharal appeared before the court and submitted the complaint regarding green channel smuggling, and ordered the concerned quarters including FBR Member Customs Zahid Khokhar, Chief Collector Abdul Rasheed Sheikh and DG Intelligence Shaukat Ali to submit reply within 10 days. The court

Genuine importers once again appealed to CJP and Chairman NAB to take strict action against ‘corrupt mafia’ of Customs Dept and green channel smugglers for sake of national economy

associate also sent the notic man NAB for notice and ne Following is the compl the Chief Justice and the As per application and a \iled by Asad Kharal, Chair vestigative Journalism (CIJ scam of green channel smu at ports of Pakistan: • Customs Department a clearances happen in green smugglers are ensured that not be checked by customs • Green channel facility sively to rich people who ha that they can cause bigger r national exchequer and co cers can make even bigger • High value goods lik items and health hazardou nuts, narcotics substances and explosives are cleared customs staff without any nation.

• Millions of Pakistani and lives due to smuggl through green chann • More than Rs 1 curred due to the scam but the cus not ready to tak rect its ways customs of\icer aries of the enti Coverage o sue by Custom It is importa that Customs Tod ing on abuse of g past many years and port regarding misus facility has con\irmed th day also unearthed mega b

ce copy to the Chairecessary action. laint submitted to NAB Chairman: ccompanied appeal rman Centre for InJ) Pakistan, a mega uggling is unearthed

admits that 46% of n channel where the t their goods would s of\icers at ports. y is provided excluave big turnovers so evenue losses to the rrupt customs of\imoney out of it. e mobiles, banned us goods like betel s, cigarettes, liquor d by a few corrupt checking or exami-

is are losing health ing of banned items nel 000 billion losses ingreen channel mega toms authorities are ke any action or cors because senior rs are huge bene\iciire scam. f green channel isms Today: nt to mention here day has been reportgreen channel since d DG Intelligence rese of green channel his fact. Customs Tobrands like Mobilink

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and QMobile which were reported to be grossly abusing Green Channel facility with connivance of Customs staff. Customs Today exposed mega smuggling scam of Digicom Company (Q-Mobile) as the company cleared more than 750 containers through green channel.

On 2nd February 2018, Customs Today exposed a smuggling bid of 15,520 liters of dual use precursor acetic anhydride worth around $1.5 million at Port Qasim. The acetic anhydride is a main ingredient for preparing narcotics substance as well as making highly dangerous explosives by the terrorist out\its. Then, Customs Today published several reports about betel nuts smuggling worth billions of rupees through ports at Port Qasim and Appraisement East Collectorate. Customs Today reported on Feb 28 that an Additional Collector at Port Qasim, under a plan, used to keep entire staff busy with futile re-examinations and re-assessments of genuine importers so that his accomplices from the green channel smugglers get a good chance to smuggle goods without examination in green channel. This kind of practice gave rise to huge smuggling through green channel.

Chambers raise voices against green channel abuse: Customs Today extensively covered the issue of misuse of green channel facility and involvement of corrupt Customs of\icials of Port Qasim and Appraisement East Collectorate.

Different chambers of commerce, associations and tax bars also raised the issue of green channel smuggling and compelled the FBR to take action against corrupt of\icials. Islamabad Chamber of Commerce and Industry (ICCI) President Shiekh Amir Waheed has said that these corrupt of\icials are the real enemy of the country because they are involved in causing huge loss in shape of revenue to national exchequer.

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12 He demanded serious action against such black sheep in the customs department. While talking to Customs Today, ICCI President Amir further said, “Our country faces leakage in the revenue collection, but black sheep in the customs department are collecting parallel revenue by such bribe and clearance of contraband goods and unfortunately this parallel revenue are more higher that our revenue collected by the department.” President Federation of Pakistan Chamber of Commerce and Industry Ghazanfer Bilour while talking to Customs Today said Customs Appraisement East R&D Section has crossed every limit to hamper ef\iciency of customs department through clearance of contraband goods and Federation of Chamber of Commerce and Industry will take up mega green channel smuggling issue with the higher authorities of customs department. Vice President Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Syeda Masooma Sibtain and member of Multan Chamber of Commerce and Industry said Pakistan Customs should modify its clearance procedure under green channel facility to

prevent its misuse in the country after revealing recent scams on Port Qasim. It is very unfortunate that a few customs of\icials are involved in unscrupulous activities at Port Qasim and they are allowing smugglers to throw their smuggled goods in the markets after getting clearance through green channel.

President of Karachi Chamber of Commerce and Industry (KCCI), Mufassir Atta Malik, has said that it is true that majority of importers are facing dif\iculties in clearance of their consignments due to unnecessary hurdles created by corrupt customs of\icials. Answering to a question, he said: “We are going to make a complaint to customs higher authorities about these corrupt of\icials.” He further said due to such corrupt of\icials a question has been marked on the reputation of customs department. Senior Vice President, Rawalpindi Chamber of Commerce and Industry (RCCI) Mohammad Nasir Mirza while talking to Customs Today said Pakistan is facing revenue shortfall, while network of corrupt of\icials is playing in the hands of smugglers, causing billions of rupees loss to the exchequer, and criminal silence of higher authorities

of Customs department and FBR is suspicious.

A timely and result-oriented action shall be taken to halt further loss to revenue and break the network of corrupt of\icials. Attack on Asad Kharal after green channel complaint: Soon after submission of a complaint against Rs 1000 billion green channel illegal clearances to the CJP and the NAB, Asad Kharal was attacked and assaulted in Lahore on 6th June and he remained under treatment at the Services Hospital and CMH. He received serious injuries to his neck, arm and other parts of the body. The senior journalist was on his way home from the airport when his vehicle was intercepted. He was taken out from the car and assaulted. In his FIR, he had neither enmity with anybody nor it was an incident of robbery. “They wanted to frighten me. They attacked me because I had sensitive information about corruption cases of Rs500-1000 billion per case in my USB and phones. I wanted to present them to the Supreme Court and the NAB.” Notice of green channel smuggling by the Chief Justice: These reports led to multiple raids, tens of FIRs and recoveries of illegally cleared goods worth billions of rupees.

In fact, in a single raid at a SITE area godown, 600,000 Kgs. of betel nuts worth Rs 1.5 billion were seized.

Notwithstanding, these actions were only as token in nature and is a drop in the ocean whereas much more needs to be done. Customs Today also published investigative reports about changing of strategies by green channel smugglers as they started clearing illegal goods through yellow channel & TP. At last, Chief Justice Mian Saqib took notice of the issue and this step could help eradicate corruption ma\ia from the country especially in Customs Department as green channel smuggling is in\licting heavy losses on the national exchequer. The chief justice and the NAB chairman have also took suo moto notices of mega corruption cases in Pakistan and even Nawaz Sharif was disquali\ied as prime minister in a historic decision announced in the Panama Papers case. Genuine importers once again appealed to the Chief Justice and Chairman NAB to take strict action against ‘corrupt ma\ia’ of Customs Dept and green channel smugglers for the sake of national economy.

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DG CUSTOMS REFFERED SEVERAL GREEN CHANNEL CASES BUT FBR TOOK NO ACTION

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LIST OF SEIZURE CASES CLEARED THRU GREEN CHANNEL FROM OCT 2016TO MAY 2018

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LIST OF CONTRAVENTION CASES CLEARED THRU GREEN CHANNEL FROM OCT 2016TO MAY 2018

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CUSTOMS I&I DEMANDS SUSPENSION OF ACCUSED APPRAISING OFFICER BUT FBR DID NOT TAKE ANY ACTION

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hairman NAB Justice (r) Javed Iqbal said that the NAB would continue its ‘Jihad’ against corruption even after receiving threats of bomb attack on its headquarters.

The NAB Chairman said NAB of\icials were not afraid and would continue to perform their duties with dedication. He asserted, ‘death and life is in hands of Allah. We do not fear from anyone except Allah and His Prophet (PBUH)’.

As per details, Customs Today raised the issue of billions of rupees green channel mega smuggling and senior journalist Asad Kharal lodged a complaint with Chief Justice Mian Saqib Nisar who took the notice and ordered the concerned authorities of FBR to submit the reply. The court associate also sent a copy to the NAB for necessary action. Soon after lodging the complaint, smugglers of green channel or corrupt ma\ia of Customs Dept attacked Kharal near Lahore Airport and assaulted him severely.

Kharal hinted at Rs500-1000 billion corruption cases in the Supreme Court and the NAB as main cause of his attack. He also warned that due to these highpro\ile corruption cases, even the CJP and the NAB chairman were not safe enough saying that ‘the ma\ia can also target the Chief Justice and the NAB chairman and I advise them to step up their security’. Now the Chairman NAB has received the threats, possibly from corrupt ma\ia or smugglers of green channel.

Since his joining as NAB chairman, Javed Iqbal has taken up several mega cases of corruption against bigwigs. In an important case, the NAB has decided to approach Interpol authorities to bring back former \inance minister Ishaq Dar and both sons of deposed prime minister Hassan and Hussain Nawaz to the country for their involvement in multiple cases pending with the bureau. Hassan and Hussain have been declared absconders in the Aven\ield reference case which is at its brim in the accountability court with lawyers of both sides presenting their concluding arguments. Dar has been indicted in the assets beyond income case pending before the accountability court which involves bigwigs from the State Bank and National Bank.

The bureau has decided to reach out to relevant Interpol authorities to bring back the trio. With the request, NAB will attach additional documents verifying why the three need to be brought back to the country. Furthermore, the NAB Chairman visited Lahore of\ice of the Bureau and appreciated performance of its of\icials under supervision of its Di-

rector General Shahzad Saleem as it recovered Rs 18 billion from corrupt people and returned the amount to the affectees in a short span of just 7 months, taking the level of trust of common people on the institution to new heights. The NAB also brought 1328 culprits to the justice in this period.

He said the Bureau has taken up mega corruption cases and in next few days, several mega corruption references would be \iled in accountability courts with solid evidences.

He said it is for the \irst time in 70 years that NAB has asked the corrupt elements why powers given to them were not used in a transparent manner and why money collected from taxpayers was looted with both hands. He said NAB would prefer case over face and it has nothing to do with elections, adding that NAB’s only purpose is to serve Pakistan and eliminate corruption. He hoped that NAB Lahore would continue its good work in future as well. “Billions of rupees corruption was witnessed in Punjab in companies’ scandal. Corrupt elements would be dealt with iron hands as per law. We have promoted the culture of ‘work, work and work’ in NAB,” he added.

Meanwhile, NAB Chairman Justice (retd) Javed Iqbal visited the NAB Lahore of\ice for the second consecutive day. NAB Lahore Director General Shehzad Saleem briefed the chairman in detail regarding the cases referred by the Supreme Court including the appointment of former Oversees Commissioner Afzaal Bhatti, Punjab Institute of Cardiology misappropriation case, inquiry against Tariq Jawad, Makhdoom Umer Shehryar and other inquiries.

The NAB chairman directed completing all investigations of cases referred by the apex court in letter and spirit. No negligence would be tolerated in this re-

gard, he added.

He said mega corru logical conclusion as p evidence. All accused status and position en He said the NAB general elections. It w plunderers of national looted money from th in the national exchequ the looters to stand in Supreme Court, high c would be implemente He directed the N plaint verification, in merit, with honesty, concrete evidence.

Since Javed Iqbal to NAB has \iled 101 corruption cases regis Recently, NAB G of\icers of the of\ice Baltistan. Deputy acco and account of\icer Ri their of\ice in Gilgit. Ac connivance with of\ic Diamer embezzled gov 2012 to 2015. The of and caused a loss of R uer, the NAB said. Acco were presented in the the court allowed the Earlier, the NAB had ar department GB in Feb

uption cases should be taken to er law and after collecting solid are equal before law and their nds outside the NAB of\ice. does not have any links with would take strict action against l wealth and will recover all the e corrupt and deposit the same uer. He said the NAB would force the dock. He said the verdicts of ourts and accountability courts d.

NAB officers to conduct comnquiries and investigations on transparency while ensuring

ook charge in October last year, references out of 179 mega stered with the watchdog. ilgit-Baltistan arrested two of Accountant General Gilgituntant general Nadeem Ahmed iaz Ahmed were arrested from ccording to NAB, the accused in ials of agriculture department vernment funds during the year \icials misused their authority Rs24.8 million to public excheqording to NAB, both the accused Accountability Court Gilgit and ir physical remand to NAB GB. rrested 3 of\icials of agriculture bruary in the same case.

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enior journalist and anchorperson Asad Kharal registered an FIR under Section 7 of Anti-Terrorism Act against unknown assailants who attacked him near Allama Iqbal International Airport in wee hours of 6 June, 2018.

He is associated and contributes to Customs Today. His investigative journalism strength has enabled Customs Today to unearth many huge mega scams in customs department including Rs 1,000 billion green channel scam. It cannot be ruled out that he was attacked by ‘corrupt ma\ia’ of customs or smugglers of green channel due to his recent complaint on Rs 1,000 billion customs green channel scam published in Customs Today as the Chief Justice has taken notice of his appeal and complaint and called for reply from the concerned quarters within 10 days.

According to details, Asad Kharal survived an assassination attempt in Lahore on 6th June and he is under treatment at the Services Hospital. He received serious injuries to his neck, arm and other parts of the body. The senior journalist was on his way home from the airport when his vehicle was intercepted. He was taken out from the car and assaulted.

In his FIR, Asad Kharal demanded formation of a joint investigation team (JIT) to identify the assailants. He said about 10 attackers were riding three vehicles and they were armed and had covered their faces and hands. “I do not want to lodge a case because the police cannot take action against them. I will lodge a case if a highlevel joint investigation team (JIT) is formed, comprising people from intelligence agencies besides the police. The JIT can be effective only if Chief Justice of Pakistan Mian Saqib Nisar heads it,” he added.

He said he had neither enmity with anybody nor it was an incident of robbery. “They wanted to frighten me. They attacked me because I had sensitive information about cor-

ruption cases of Rs500-1000 billion per case in my USB and phones. I wanted to present them to the Supreme Court and the NAB." “Such tactics cannot scare me from my duty of public service and patriotism. The ma\ia can also target the chief justice and the NAB chairman and I advise them to step up their security. I have concrete evidence of corruption and the chief justice should summon me to his chamber to hear me,” he observed.

It is pertinent to mention here that recently Asad Kharal repeatedly published full page appeals to the Chief Justice of Pakistan in Customs Today newspaper on the Rs. 1,000 Billion mega scam of green channel. Big names like Mobilink and QMobile are reported to be involved in the mega scam. Last Friday 1 June 2018, he appeared at the Supreme Court and \iled complaint along with the copies of the appeals. He also \iled two more complaints. Chief Justice of Pakistan Mian Saqib Nisar took notice of all three complaints and called for reports from relevant quarters within 10 days. In a letter dated Tuesday 5 June marked as Immediate/urgent, the court asked FBR chairman for reply and sent copy to the Chairman NAB for information and necessary action. On the very next day of this letter in the wee hours of Wednesday Asad Kharal was attacked by ‘masked men’ near Allama Iqbal International Airport.

Asad Kharal has been active in unveiling many mega scams and corruption cases where big and powerful individuals, bureaucrats and political personalities are hooked. However, Asad Kharal is yet to accuse anyone of the attack.

Customs Today team condemns the brutal attack on the senior journalist Asad Kharal. Customs Today stands for security for all journalists and media persons in Pakistan.

It is unfortunate that Pakistan has been ranked 139th out of 180 countries in the 2017 World Press Freedom Index maintained by the Reporters Without Borders (RSF).

Pakistan should be an entirely safe place for all media persons.

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ahzad Sultan, head of JIT formed to investigate attack on senior journalist Asad Kharal, has constituted a sub-JIT to take the case ahead speedily. Asad Kharal was attacked few days ago by armed assailants, most probably for pursuing billions of rupees corruption and green channel smuggling cases.

It is reported that sub-JIT comprises four of\icers including SP Naveed, DSP Nasir Panjota, Inspector Imran and Inspector Rana Siddique. This JIT would extend full support to high level JIT to investigate case regarding attack on Asad Kharal who was pursuing most important cases of corruption in the SC and the NAB. Earlier, a high level joint investigation team (JIT) was formed to probe the matter following directives from the Punjab government. The JIT comprised Inter-Services Intelligence (ISI), Military Intelligence (MI) and CTD of\icials.

Senior Journalist Asad Kharal informed police that he was attacked for pursuing important cases of billions of rupees corruption in the National Accountability Bureau (NAB) and the Supreme Court.

He said Punjab police shared these details with chairman of the standing committee on human rights Mustafa Nawaz Khokhar and

Chief Justice of Pakistan Mian Saqib Nisar in a report.

Furthermore, the police are conducting geo-fencing of the place of the incident with the help of the Counter-Terrorism Department (CTD) and Intelligence Bureau. Khokhar told media that the committee would ensure continuous oversight of the matter. Meanwhile, senior journalist and anchorperson Asad Kharal had registered an FIR under Section 7 of Anti-Terrorism Act against unknown assailants who attacked him near Allama Iqbal International Airport in wee hours of June 6.

Asad Kharal is associated and contributes to Customs Today. His investigative journalism strength has enabled Customs Today to unearth many huge mega scams in customs department including Rs 1,000 billion green channel scam. It cannot be ruled out that he was attacked by ‘corrupt ma\ia’ of customs or smugglers of green channel due to his recent complaint on Rs 1,000 billion customs green channel scam published in Customs Today as the Chief Justice has taken notice of his appeal and complaint and called for reply from the concerned quarters within 10 days.

According to details, Asad Kharal survived an assassination attempt in Lahore on 6th June and shifted to the Services Hospital.

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n his FIR, Asad Kharal had demanded formation of a joint investigation team (JIT) to identify the assailants. He said about 10 attackers were riding three vehicles and they were armed and had covered their faces and hands. “I do not want to lodge a case because the police cannot take action against them.

I will lodge a case if a high-level joint investigation team (JIT) is formed, comprising people from intelligence agencies besides the police. The JIT can be effective only if Chief Justice of Pakistan Mian Saqib Nisar heads it,” he added.

Asad Kharal said he had neither enmity with anybody nor it was an incident of robbery. “They wanted to frighten me. They attacked me because I had sensitive information about corruption cases of Rs5001000 billion per case in my USB and phones. I wanted to present them to the Supreme Court and the NAB.” “Such tactics cannot scare me from my duty of public service and patriotism. The mafia can also target the chief justice and the NAB chairman and I advise them to step up their security. I have concrete evidence of corruption and the chief justice should summon me to his chamber to hear me,” he observed.

It is pertinent to mention here that recently Asad Kharal repeatedly published full page appeals to the Chief Justice of Pakistan in Customs Today newspaper on the Rs.

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1,000 Billion mega scam of green channel. Big names like Mobilink and QMobile are reported to be involved in the mega scam.

Last Friday 1 June 2018, he appeared at the Supreme Court and filed complaint along with the copies of the appeals. He also filed two more complaints. Chief Justice of Pakistan Mian Saqib Nisar took notice of all three complaints and called for reports from relevant quarters within 10 days. In a letter dated Tuesday 5 June marked as Immediate/urgent, the court asked FBR chairman for reply and sent copy to the Chairman NAB for information and necessary action. On the very next day of this letter in the wee hours of June 6 Asad Kharal was attacked by ‘masked men’ near Allama Iqbal International Airport. Asad Kharal has been active in unveiling many mega scams and corruption cases where big and powerful individ-

Asad Kharal thanks DG ISPR Major General Asif Ghafoor, Lahore Corps Commander Lt General Aamer Riaz, Military Intelligence Punjab Brig M. Kashif Azad, DG NAB Karachi Altaf Bawany for best wishes

‘Get well soon’ card with Bouquet sent by Chairman NAB Justice (r) Javed Iqbal and Chairman PEMRA Ashfak Jumani to senior investigative journalist Asad Kharal uals, bureaucrats and political personalities are hooked.

However, Asad Kharal is yet to accuse anyone of the attack.

Meanwhile, senior investigative journalist Asad Karal thanked Chief Justice of Pakistan Mian Saqib Nisar for ordering his admission to CMH Lahore. Asad Kharal said, “I was treated properly as per advice of the three Brig doctors. I am really thankful to Honorable Chief Justice of Pakistan Justice Mian Saqib Nisar, worthy Chief of Army staff General Qamar Javed Bajwa and worthy Chairman NAB Justice Retired Javed Iqbal for giving me inspiration to serve my nation at any cost.” “ See next page

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“I did everything for my beloved country as well as beloved people of Pakistan and overseas Pakistanis in particular.” Asad Kharal was attacked and seriously injured by armed assailants few days ago and admitted to Services Hospital but he was not properly treated there.

It is pertinent to mention that Chief Justice of Pakistan Mian Saqib Nisar took notice of a complaint \iled by senior journalist Asad Kharal against illegal clearances through green channel and ordered report/comments from concerned quarters within 10 days while the court associate sent the order copy to the Chairman NAB for necessary action.

According to details, the chief justice took notice on a complaint accompanied by an appeal published in Customs Today about Rs 1000 billion mega scam of green channel illegal clearances. It is worthy to mention here that Customs Today has been reporting on abuse of green channel since past many years.

These reports led to multiple raids, tens of FIRs and recoveries of illegally cleared goods worth billions of rupees. In fact, in a single raid at a SITE area godown, 600,000 Kgs. of betel nuts worth Rs 1.5 billion were seized.

Notwithstanding, these actions were only as token in nature and is a drop in the ocean whereas much more needs to be done. Customs Today also published investigative reports about changing of strategies by green channel smugglers as they started clearing illegal goods through yellow channel & TP. Millions of Pakistanis pinned high hopes on Chief Justice Mian Saqib and Chairman NAB Justice (retired) Javed Iqbal that they would eradicate corruption ma\ia from the country especially in Customs Department as green channel smuggling is in\licting heavy losses on

the national exchequer. The chief justice and the NAB chairman already took suo moto notices of mega corruption cases in Pakistan and even Nawaz Sharif was disquali\ied as prime minister in a historic decision announced in the Panama Papers case.

Meanwhile, senior investigative journalist Asad Karal has thanked Lahore Corps Commander Lt General Aamer Riaz for sending a bouquet and best wishes to him.

Asad Kharal, who was seriously injured in an assassination attempt in Lahore few days ago, said, “Special Thanks to Respected Lt General Mr. Aamer Riaz Hi(M) Commander 4 corps Lahore for sending his best wishes to me.” 'Get well soon' card with Bouquet is sent

by Chairman NAB through DG NAB Lahore, DG ISPR Major General Asif Ghafoor, Military Intelligence Punjab Brig M. Kashif Azad, DG NAB Karachi Altaf Bawany and Chairman PEMRA Ashfak Jumani to senior investigative journalist Asad Kharal.

Meanwhile, the NAB launched another high level inquiry against former prime minister Nawaz Sharif over money laundering allegations on the complaint of senior investigative journalist, Asad Kharal. The spokesperson for NAB said Kharal recorded his statement before the bureau and submitted relevant record to NAB investigators. According to the spokesperson, the complainant provided details about alleged money laundering by Sharif and his family members.

Sharif and his family members have been facing similar charges in the references made under the Panama Papers case and being tried in the Accoun¬tability Court in Islamabad.

The fresh complaint said Khaista Khan and Jamshed Khan, Hawala/Hundi dealers from Peshawar, were engaged by the Sharif family

to siphon off large amounts of funds through their bank accounts. It said according to the testimony of Khaista Khan and Jamshed Khan before NAB, the Sharif family illegally sent funds converted into foreign currencies abroad regularly.

The complaint said Khalid Siraj, a \irst cousin and business partner of Mr Sharif, had disclosed in a statement recorded before the Federal Investigation Agency in the Panama Papers case, the Sharif family’s misdeeds, including transfer of funds aboard and purchase of assets in foreign countries.

“Between 1988 and 1991, Rs56.896 million was sent out of the country,” the complaint said.

According to the complaint, Mr Siraj said initially Rs140m was transferred to the Bank of Oman in Sharjah from Pakistan through Hawala/Hundi. Later, the amount was credited to the Shamrock Consulting Corporation through the Allied Bank’s London Stock Exchange branch. The amount was used allegedly in the purchase of the Park Lane apartment during 1993-96.

The complaint said the World Bank and the United Nations Of\ice of Drugs and Crime had jointly initiated a report for stolen asset recovery, implicating Mr Sharif vide case no.

147, and found him liable under Article 17 and 23 of the United Nations Convention Against Corruption, of which Pakistan was also signatory. It is worthy to mention here that Supreme Court also took notice on complaint of Asad Kharal published in Customs Today about Rs1000 billion illegal clearances through green channel facility at ports of the country. After the notice taken by the CJP, the court associate sent the copy to the NAB for necessary action in this regard.

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ustoms Today has been covering the green channel mega scam since many years. Senior customs of\icials have been denying their role in the Rs. 1,000 billion mega scam of green channel and avoiding answering speci\ic questions related to the scam.

If the senior customs of\icials are honest then why are they hiding facts from the nation? Why they are hiding that their senior customs of\icial is also director in the green channel related software and security company PRAL? Why they were hiding that green channel is ‘mercilessly misused’ and that customs of\icials are involved in the mega scam and why DG Intelligence had to expose this fact?

Customs Today succeeded to prove its reports regarding green channel smuggling as Chief Justice of Pakistan Mian Saqib Nisar took notice of the issue and Directorate General CustomsIntelligence&Investigation (I&I) admitted that green channel facility has been mercilessly abused by some syndicates in connivance with a few corrupt customs of\icers. The Supreme Court associate also wrote to Chairman NAB to take necessary action. After CJP’s notice, it is expected the Rs. 1,000 billion of the nation robbed by customs high of\icials would be returned to them. Sources said we have now dug deep into the values and volumes of losses that Pakistan revenue is facing due to this mega scam of customshighof\icials.Wehavefoundthatthisisthe biggest ever scam in the history of Pakistan.

Pakistan can pay off all its debts in a matter of few years if only these green channel losses of

Pakistan are controlled.

Sources said 17 questions were sent to the head of customs but he did not reply to the questions and was running away from it. Extensive research revealed that an FBR of\icial at one instance has mentioned to media on how many containers are released under green channel without scanning or examination. The FBR of\icial said that 700,000 consignments were released under green channel. He tried not to tell the number of containers. But experts say that each consignment is made up of 4 to 20 containers. Even if we take an average on the lower side then too it will be around 7 containers per consignment. This means 700,000 consignments x 7 containers per consignment = around 49 lac containers.

Sources said green channel scam started in 2011-2012. Hence, if we multiply the above \igure to last 6 years of green channel clearances then it will be around 30 million containers.

Even if take the \igure on the lower side then too it will not be less than 10 million containers in green channel cleared without scanning and examination.Somuchofliquor,mobiles,electronic items, cigarettes, betel nuts, chemicals, etc. have been poured into the country through green channel. Pakistan has lost Rs. 1,000 billion and also millions of lives and properties due to this.

Sources said the FBR of\icial in media reports claimed that 97% of goods in other countries are cleared in green channel while in Pakistan it is 47%. This is merely an attempt to mislead the media. In other countries, the concept of green channel itself is totally different from what some of the corrupt ma\ia of Pak-

istan Customs has made it. In other countries where 97% is cleared in green channel then 100% is scanned. This means a person cannot declare iron scrap while clearing liquor in it.

This kind of clearance of liquor while declaring iron scrap is possible only in Pakistan green channel due to high corruption of some of the top customs of\icers.

Sources further revealed, in many other countries, they have only two channels; red and green. In red channel they do examination of each container and in green channel they scan the containers and also do random examination. But in Pakistan, the committee in charge of Risk Management System (RMS) cleverly kept three channels: red, yellow and green. The genuine importers of Pakistan have appealed to the NAB chairman Justice (r) Javed Iqbal and also to the new FBR Chairman Rukhsana Yasmeen to investigate regarding the people who controlled this committee and manipulated the green channel for ulterior motives.

Sources said random checking which is happening in green channel of the other countries happens in yellow channel in Pakistan. In fact, other countries scan 100% of their goods in green channel and in Pakistan scanning is not there even in yellow channel! This is why there is so much of misuse of yellow channel in Pakistan and even green channel is not possible to misuse in other countries like this. The kind of system made in green channel in Pakistan is obviously made so that the rich and powerful people can pay money to Customs high of\icials togetintothe greenchannelandmintbillionsof rupees at the cost of national economy.

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hief Justice of Pakistan Mian Saqib Nisar rebuffed the FBR authorities on open sale of smuggled goods in major markets while ordered the highups to submit comments on a related complaint of green channel smuggling by 11th June 2018. The tax authorities decided in a meeting held at the FBR House to ensure compliance with the directives of the Chief Justice of Supreme Court during the hearing proceedings of suo motu case #11/2018 on 05.06.2018.

The letter No. C No. 15(3) E&C/2018/71701 was issued by Muhammad Saleem Memon, Secretary Enforcement and Coordination to DG I&I and Chief Collector North on 6 June, 2018 in this regard.

In line with the directions of the Supreme Court, the FBR held a detailed meeting to \inalize practical steps to control the menace of smuggling in the said areas without delay. During the meeting, the chairman FBR informed the members that the Chief Justice of Pakistan communicated his displeasure on the open sale of smuggled goods across the country, especially in Hayatabad Karkhano Market Peshawar, Blue Area Islamabad, Rawalpindi Bara Market and other main markets in various major cities of the country. The Chief Justice warned if the menace of smuggling was not checked, it could lead to destruction of the indigenous manufacturing industry and other allied sectors.

The FBR had decided that Member Customs would immediately

initiate steps to check the menace of smuggling and submit the report of actions taken to the chairman FBR by June 7, 2018 for onward submission to the Supreme Court of Pakistan.

The action would be taken by Member Customs.

The CJP has taken notice of smuggling related issues raised and reported extensively by media especially by Customs Today. Customs Today published a series of investigative reports about large scale smuggling of different banned items through green channel with the help of a few corrupt customs of\icials.

After CJP's suo moto notice, Pakistan Customs launched anti-smuggling operations across the country and Peshawar Customs Intelligence and Investigation in a crackdown on smuggled goods recovered cloth worth Rs 30 million from Karkhano Market, Peshawar. Similarly, Customs \ield formations have accelerated anti-smuggling operations in the country. Earlier, the CJP took notice in case No 21502-P/2018 of a complaint \iled against illegal clearances through green channel and ordered report/comments from concerned quarters within 10 days while the court associate sent the order copy to the Chairman NAB for necessary action. When Customs Today correspondent sought details from Member Customs Zahid Khokhar about the case, he said he did not receive any notice yet.

According to details, the chief justice took notice on a complaint accompanied by an appeal published in Customs Today about Rs 1000 billion mega scam of green channel illegal clearances.

See next page

30 As per application and accompanied appeal filed by Asad Kharal, senior journalist and Chairman Centre for Investigative Journalism (CIJ) Pakistan, a mega scam of green channel smuggling is unearthed at ports of Pakistan: •Customs Department admits that 46% of clearances happen in green channel where the smugglers are ensured that their goods would not be checked by customs officers at ports.

•Green channel facility is provided exclusively to rich people who have big turnovers so that they can cause bigger revenue losses to the national exchequer and corrupt customs officers can make even bigger money out of it.

•High value goods like mobiles, banned items and health hazardous goods like betel nuts, narcotics substances, cigarettes, liquor and explosives are cleared by a few corrupt customs staff without any checking or examination.

•Millions of Pakistanis are losing health and lives due to smuggling of banned items through green channel •More than Rs 1000 billion

losses incurred due to the green channel mega scam but the customs authorities are not ready to take any action or correct its ways because senior customs officers are huge beneficiaries of the entire scam.

Customs Today is partner of the CIJ Pakistan in all its matters related to customs.

It is worthy to mention here that Customs Today has been reporting on abuse of green channel since past many years.

Mega brands like Mobilink and QMobile were reported to be grossly abusing Green Channel facility with connivance of Customs staff. Customs Today exposed mega smuggling scam of Digicom Company (QMobile) as the company cleared more than 750 containers through green channel. In another case, the company did not pay Sales Tax of Rs 772 million on import of total 2,410,560 mobiles.

On 2nd February 2018, Customs Today exposed a smuggling bid of 15,520 liters of dual use precursor acetic anhydride worth around $1.5 million at Port Qasim.

The acetic anhydride is a main ingredient for preparing narcotics substance as well as making highly dangerous explosives by the terrorist outfits. Then, Customs Today

published several reports about betel nuts smuggling worth billions of rupees through ports at Port Qasim and Appraisement East Collectorate.

These reports led to multiple raids, tens of FIRs and recoveries of illegally cleared goods worth billions of rupees. In fact, in a single raid at a SITE area godown, 600,000 Kgs. of betel nuts worth Rs 1.5 billion were seized.

Notwithstanding, these actions were only as token in nature and is a drop in the ocean whereas much more needs to be done. Customs Today also published investigative reports about changing of strategies by green channel smugglers as they started clearing illegal goods through yellow channel & TP. Millions of Pakistanis pinned high hopes on Chief Justice Mian Saqib and Chairman NAB Justice (retired) Javed Iqbal that they would eradicate corruption ma\ia from the country especially in Customs Department as green channel smuggling is in\licting heavy losses on the national exchequer. The chief justice and the NAB chairman already took suo moto notices of mega corruption cases in Pakistan and even Nawaz Sharif was disquali\ied as prime minister in a historic decision announced in the Panama Papers case.

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hief Justice of Pakistan Mian Saqib Nisar took notice of a complaint \iled against illegal clearances through green channel and ordered report/comments from concerned quarters within 10 days while the court associate sent the order copy to the Chairman NAB for necessary action.

According to details, the chief justice took notice on a complaint accompanied by an appeal published in Customs Today about Rs 1000 billion mega scam of green channel illegal clearances.

As per application and accompanied appeal \iled by Asad Kharal, senior journalist and Chairman Centre for Investigative Journalism (CIJ) Pakistan, a mega scam of green channel smuggling is unearthed at ports of Pakistan: •Customs Department admits that 46% of clearances happen in green channel where the smugglers are ensured that their goods would not be checked by customs of\icers at ports.

•Green channel facility is provided exclusively to rich people who have big turnovers so that they can cause bigger revenue losses to the national exchequer and corrupt customs of\icers can make even bigger money out of it.

•High value goods like mobiles, banned items and health hazardous goods like betel

nuts, narcotics substances, cigarettes, liquor and explosives are cleared by a few corrupt customs staff without any checking or examination.

•Millions of Pakistanis are losing health and lives due to smuggling of banned items through green channel •More than Rs 1000 billion losses incurred due to the green channel mega scam but the customs authorities are not ready to take any action or correct its ways because senior customs of\icers are huge bene\iciaries of the entire scam.

Asad Kharal, in the application, also pointed to the fact that there are similar complaints/inquiries also pending at NAB. On this complaint, the chief justice took notice and ordered report/ comments from concerned quarters within 10 days. Copy of the order is also sent to the Chairman NAB for information and necessary action.

Customs Today is partner of the CIJ Pakistan in all its matters related to customs.

It is worthy to mention here that Customs Today has been reporting on abuse of green channel since past many years. Mega brands like Mobilink and QMobile were reported to be grossly abusing Green Channel facility with connivance of Customs staff. Customs Today exposed mega smuggling scam of Digicom Company (Q-Mobile) as the company cleared more than 750 containers through green channel. In another case, the company did not pay Sales Tax of Rs 772 million on import of total 2,410,560 mobiles.

On 2nd February 2018, Customs Today exposed a smuggling bid of 15,520 liters of dual use precursor acetic anhydride worth around $1.5 million at Port Qasim. The acetic anhydride is a main ingredient for preparing narcotics substance as well as making highly dangerous explosives by the terrorist out\its.

Then, Customs Today published several reports about betel nuts smuggling worth billions of rupees through ports at Port Qasim and Appraisement East Collectorate.

These reports led to multiple raids, tens of FIRs and recoveries of illegally cleared goods worth billions of rupees. In fact, in a single raid at a SITE area godown, 600,000 Kgs. of betel nuts worth Rs 1.5 billion were seized.

Notwithstanding, these actions were only as token in nature and is a drop in the ocean whereas much more needs to be done.

Customs Today also published investigative reports about changing of strategies by green channel smugglers as they started clearing illegal goods through yellow channel & TP. Millions of Pakistanis pinned high hopes on Chief Justice Mian Saqib and Chairman NAB Justice (retired) Javed Iqbal that they would eradicate corruption ma\ia from the country especially in Customs Department as green channel smuggling is in\licting heavy losses on the national exchequer. The chief justice and the NAB chairman already took suo moto notices of mega corruption cases in Pakistan and even Nawaz Sharif was disquali\ied as prime minister in a historic decision announced in the Panama Papers case.

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Renowned lawyer Ismat Mehdi has said that green channel was introduced to facilitate importers and many of them are taking benefits from this channel, but some corrupt elements are misusing this facility and they are using this channel for their own benefits. Talking with Customs Today, she lauded Chief Justice of Pakistan Justice Saqib Nisar for taking notice of this mega corruption. She said that after the shocking facts this action is appreciable. She said that CJP also ordered an inquiry into the matter. She further said that action against corrupt elements in customs can only be taken if “we have proof of their bribe, or registered FIR against them.� Now it’s Customs officials responsibility to take strict action against those corrupt elements, she added. Ismat Mehdi said few Customs offic ials have turned a blind eye on clearance of banned and noncertified goods worth billions of rupees through green channel by declaring as scrap. She said that misuse of green channel facility by smugglers has caused huge loss to the national exchequer and genuine importers in the country. Misuse of green channel facility allowed smugglers in the country to launch their smuggled goods in the open markets after getting clearance through green channel. She said importers pay all taxes and levies for the clearance of their shipments but smugglers smoothly get cleared their goods by mis-declaration under the grab of other items. This is causing billions of rupees loss to national exchequer.

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ame person, who kept on saying that customs department is innocent in green channel Rs 1000 billion mega scam as the green channel is responsibility of the automation or software department, is allegedly found involved in the mega scam.

According to details, \irst of all, DG Customs Intelligence Shaukat Ali gave a letter to FBR Chairman Tariq Mahmood Pasha admitting that green channel is ‘mercilessly misused’ with the possible connivance of customs staff and action needed against customs staff.

Then, sources exposed that head of customs is also director at the private limited company that develops and manages software for customs. The company name is Pakistan Revenue Automation Pvt. Ltd. (PRAL). Hence, it was only a lame excuse of head of Customs that he is clear in the mega scam and he knows nothing about green channel as it is part of automation and not falling under his domain. But after this shocking revelation that the same person is also director at the private limited company and he is the boss of the staff who are developing and maintaining green channel software side, hence he is responsible in the Rs. 1000 billion mega scam of green channel both on operations side of customs as well as automation side of PRAL. He cannot run away like this from taking responsibility.

Sources further revealed that customs department has not hired any other company to handle the security of the green channel system which is exclusively with PRAL. In such situation where head of Customs and director of PRAL both is the same person then how is the security of green channel system safe?

Customs Today succeeded to prove its reports regarding green channel smug-

gling as Chief Justice of Pakistan Mian Saqib Nisar took notice of the issue and Directorate General Customs Intelligence & Investigation (I&I) admitted that green channel facility has been mercilessly abused by some syndicates in connivance with a few corrupt customs of\icers.

Director General Customs I&I Shaukat Ali gave full weight to the complaint to the extent that the green channel facility at the ports has been “excessively misused” and recommended urgent action to arrest haemorrhage of state revenue.

This complaint was submitted by senior investigative journalist Asad Kharal to Chief Justice Mian Saqib Nisar and repeatedly published in Customs Today newspaper against green channel illegal clearances worth Rs 1000 billion.

In a report submitted to FBR Chairman Tariq Mahmood Pasha after Chief Justice Mian Saqib Nisar took notice of the complaint of large-scale misuse of green channel facility and ordered FBR Member Customs, Chief Collector Appraisement South and DG I&I to submit reply within 10 days, the Directorate General Customs Intelligence put up total blame on the Federal Board of Revenue (FBR) and the Customs Department while con\irming ‘merciless’ misuse of green channel facility with support of a few customs of\icials.

After CJP’s notice, FBR advised Directorate General Customs Intelligence to submit its report. As per report, Directorate General Customs Intelligence & Investigation (I&I) placed on record that Green Channel facility has been ‘callously’ abused by some syndicates of unscrupulous fraudsters and the possibility of connivance of few customs of\icers cannot be ruled out. The above comment emanates from the Directorate General’s experience of detection of Green Channel related cases and adverse reaction of some of\icers/of\icials in Customs hierarchy.

The Directorate General also men-

tioned in the report that strong recommendations of placing under suspension some Customs of\icers/of\icials suspected to be involved in facilitating the misuse of Green Channel facility repeatedly made by the Directorate General have been ignored by FBR. Thus, the manipulators inside the department do not feel discouraged enough to refrain from extending their helping hand to the fraudsters.

In addition to the above, whenever the Directorate General detected cases of misuse of Green Channel in the recent past, collectorates particularly MCC East Karachi, MCC West Karachi, MCC Port Qasim and MCC Appraisement Lahore have reacted sharply against the action taken by the Directorate General of Customs Intelligence & investigation and attempted to protect the fraudsters.

Directorate General Customs Intelligence & Investigation notes that non-action on part of FBR and adverse reaction of collectorates practically placed hurdles in the way of the Directorate General Customs Intelligence & Investigation to effectively check the misuse of the green channel facility at ports.

As per details, Customs Today extensively covered and reported since past few years the misuse of green channel facility and published repeatedly an appeal of senior investigative journalist Asad Kharal to the Chief Justice Mian Saqib Nisar and the NAB chairman Justice (r) Javed Iqbal to take notice of Rs 1000 billion green channel illegal clearances. The Chief Justice took notice of the complaint, as Asad Kharal appeared before the court and submitted the complaint regarding green channel smuggling, and ordered the FBR Member Customs Zahid Khokhar, Chief Collector Appraisement South Abdul Rasheed Sheikh and DG Intelligence Shaukat Ali to submit reply within 10 days. The court associate also sent the notice copy to the Chairman NAB for notice and necessary action.

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The Collectorate of Customs Adjudication-I has served show cause notice to M/s Pakistan Mobile Communication Limited (Mobilink) for its alleged involvement in mis-declaration and huge evasion of customs duty and other taxes. The company evaded about Rs 6.99 million in share of customs duty, sales tax, additional sales tax, regulatory duty and withholding tax.

According to details, the Model Customs Collectorate of Port Muhammad Bin Qasim on a credible tip intercepted an imported consignment of M/s Pakistan Mobile Communication Limited cleared through Green Channel vide GD No.KPPI-HC-1778 on 8 July, 2014 and during examination found that the importer was attempted to clear goods by mis-declaration through Green Channel and evaded legitimate duties with the connivance of its clearing agent M/s SASPAK Cargo (Pvt) Limited.

Later, during the co urse of examination it was ascertained that the imported goods were DC Cabinet Air Conditioner DC 48 Volt designed for the telecom and other industrial equipment cooling application which were specifically classifiable under PCT heading 8415.8200 chargeable to customs duty @25 pe r cent, regulatory duty @5per cent besides other t axes, whereas importer t ried to clear under the vague description that Cellular Infrastructure Equipment (HW) for telecom sector consist ing of outdoor power cabinet (EAB-PSC23MES) 50 pieces and sought release under PCT Heading 8517.7000 attract ing CD @10 per cent, ST @3 per cent and WHT @5.5 per cent.

According to the MCC Port Muhammad Bin Qasim, th e total declare d value is US$ 1, 38 ,595 CFR equivale nts to Pakist ani Rs 13.8 million and t he importer paid total duty and t axes Rs5.55 million.

Subsequently, the Collectorate of Customs Adjudication-I has issued hearing notice to M/s Pakistan Mobile Communication Limited.

It is pertinent to mention here that the M/s Pakistan Mobile Communication Limited has already requested to the Collector of Customs Adjudication for joint examination of the imported consignments in the presence of their company representatives.

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few corrupt of\icials in the customs department are big hurdle in execution of appropriate customs laws to prevent smuggling through green channel. Customs authorities should adopt effective measures by following standard rules and principles to avoid misuse of green Channel.

These views were expressed by renowned lawyer Malik Tariq Saeed during his exclusive interview with Customs Today. He said that green channel facility was introduced for genuine importers and exporters for smooth clearance of their shipments without any trouble but it has been revealed that smugglers are abusing green channel facility due to weak enforcement of customs department and a few corrupt of\icials have also allowed smugglers to adopt green channel for clearance of contraband items and other

goods. It is regrettable that a few corrupt customs of\icials are involved in unscrupulous activities at Port Qasim and they are allowing smugglers to throw their smuggled goods in the markets after getting clearance through green channel.

He added that customs department should ful\ill their appropriate procedure for green channel declarations in clearance procedure. Customs laws are comprehensive to prevent any sort of smuggling and it is need of the hour to meet basic requirements of the inspection in order to detect violations of green channel facility in the clearance.

He said risk management department of customs should bring reforms in their systems by adopting modern techniques for examination if they feel that existing laws are insuf\icient to prevent smuggling.

Customs of\icials have been found involved in misuse of green channel facility most of the time as they give opportunity to smugglers for the sake of bribe.

Presently, some mechanisms and policies are consistent and compatible with customs supervision which gave opportunity to corrupt of\icials to misuse green channel. Abuse of green channel facility discourages genuine importers in the country as they are unable to compete price difference in the market, he added.

He said that we should amend procedure for the classi\ication channels to protect violation and ensure strict customs inspection and control process. Customs department needs to specify new methods for information sharing, providing and updating the system to prevent violations of green channel.

He recommended that customs of\icers in charge of risk management do not have suf\icient information to realize methods and tricks of smugglers for preparing plans in developing criteria of channel classi\ication for inspection. Customs staff should be given capacity building training to overcome abuse of green channel.

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pecial Assistant to Prime Minister on Revenue/Minister of State Haroon Akhtar Khan said that upon getting information about smuggling through green channel, the wrong doers are put on red channel and they have to go through strict checking for years to regain their credibility.

He expressed these views while answering to Customs Today about the misuse of green channel and involvement of the customs of\icials, appraising of\icers and principal appraisers especially Dost Muhammad and his aides on the side lines of a get-together at the Customs House Lahore.

Chief Collector Customs Central Zeba Hai Azhar, Director General Internal Audit Sarfraz Ahmed Warraich, Director General Training Mukarram Jah and Collector Model Collectorate Customs (Preventive) Lahore Faiz Ahmad shared the stage with him on this special occasion. Haroon Akhtar said that zero-tolerance about corruption has been adopted by the customs and if any of\icials are found involved in corrupt practices they are dealt with iron hands.

He said those of\icials, who found involved, are suspended and they face services tribunals and other forums; however, if they are found guilty they are dismissed and if they are found innocent, they are allowed to join their jobs. He said, “During the last three years, we have busted so

many big smugglers and ma\ias involving in smuggling of mobile phones, medicines and other valuables worth billions of rupees.”

When asked about the Dost Muhammad network, he said, he has never spared anyone involved in corruption and initiated the investigation against them. He said, “If complaint against any of\icial is sent to me, I properly investigate the matter and if the of\icial is found involved, he is punished.” When asked if he has developed any system that can make Pakistan Customs a shining star, he said that the customs has the potential and the department is led by reasonable people. He further said that securing the business environment involves the streamlining of Customs procedures, enhancing integrity, facilitating the movement of goods, conveyances and people, and combating cross-border crime to prevent the shipment of illicit goods that endanger people’s health, safety and security. It is pertinent to mention here that reports about mega scams of green channel, yellow channel, TP and bonded warehouse recently covered

by Customs Today where Principal Appraiser Dost Muhammad is illegally posted at R&D, Karachi East Collectorate and he is facilitating and protecting the smugglers. All the data of illegal smuggling is available with Dost on R&D system where he can easily stop the smuggling.

In fact, concrete evidence has surfaced where 600,000kgs betel nuts valuing more than Rs 1.5 billion un\it for human consumption were seized by Directorate of Intelligence in a raid at a Karachi warehouse. FIR C.No. M2430/DCI/Seize/2018 was lodged and the accused have submitted copies of GD admitting their clearances from Karachi east collectorate which data already existed with Dost’s R&D division.

Similarly, removal of bonded goods were caught red handed and FIR No 09/2018-R&D-East lodged where again the data was already available with Dost’s R&D division. An entire series of mega scams and comprehensive evidences of its data already available with Dost have been unearthed.

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few customs of\icials at Port Qasim have turned a blind eye on clearance of banned and non-certi\ied goods worth billions of rupees through green channel by declaring as scrap.

Customs Today has been reporting on misuse of green channel by a few senior customs of\icials. Our information proved true when 6 containers of betel nuts were caught by Customs Preventive on February 21 in a raid at a godown in Korangi Industrial Area and these containers were actually smuggled from Port Qasim green channel as scrap.

Qamar Thallo, spokesperson of Customs Preventive, told Customs Today that ambit of investigations has been widened due to possibility that smugglers might have cleared hundreds of other such containers through green channel. Above importer got cleared 14 containers of betel

nuts through green channel. “More such raids and con\iscation of betel nuts’ consignments will be conducted in coming days,� he said.

It is worth mentioning that 188 containers of betel nuts are stuck up at ports. Since legal import is stopped, goods are being smuggled. The importer namely M/s Jebel Ali dumped the containers in Korangi area where the raid took place.

Customs Appraisement South comprising Appraisement East, MCC Appraisement West and MCC Port Qasim have put all consignments coming from Jebel Ali on red channel after the con\iscation in Korangi, a customs of\icial revealed. In the meantime, the customs of\icials involved in the scam of clearing the consignments become more active to save their skin including ADC Yasin Murtaza and others.

It is pertinent to mention that on 2nd February, a smuggling bid of 15,520 liters of dual use precursor acetic anhydride worth

around $1.5 million was foiled at Port Qasim. The acetic anhydride, a main ingredient for preparing narcotics substance as well as making highly dangerous explosives by the terrorist out\its was shipped from Poland for a fake Peshawar-based importer M/s Pak Traders.

Sources said that these consignments were imported on fake names, IDs and addresses so it could only be done with the help of customs of\icials at Port Qasim who were clearing these goods through green channel and supporting these unknown smugglers of green channel.

Sources revealed the facility of green channel is still being misused at MCC-Appraisement Port Qasim as 200 to 300 containers of Iron-Steel scrap are being cleared through green channel despite the fact that these items are not allowed to be cleared through green channel, causing loss to exchequer worth billions.

Customs Today had reported earlier that ADC Yasin Murtaza,

under a plan, was keeping entire staff & place busy with futile reexaminations and re-assessments of genuine importers so that his accomplices from the green channel smugglers get a good chance to smuggle goods without examination in green channel. This is giving rise to huge smuggling through green channel. Genuine importers who are losing their competition in the market due to presence of goods smuggled through green channel have appealed to Member Customs Zahid Khokhar to take prompt action to stop misuse of the facility at Port Qasim.

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few customs of\icials at Port Qasim have been providing ‘hidden support’ to smugglers to blindly misuse the facility of green channel at Port Qasim for ful\illing their vested interests.

They are allowing unchecked clearance of banned and non-certi\ied goods worth billions of rupees through green channel by declaring as scrap, allege sources.

Sources say Customs Preventive raided different godowns and seized 6

containers of betel nuts cleared under HS Code 7204.4100 through green channel. Suspects namely Muhammad Shoaib Arshad, owner of M/s City Steel UAE Mills (Private) Limited, Muhammad Arshad, owner of M/s A.F Enterprises, Muhammad Tariq, Sohrab Khan, Amjad Khan and others booked in a betel nuts smuggling case which they had imported in the garb of waste and cast iron scrap.

According to the FIR No ASO-58/2018 lodged on 21 February, an ASO team found two containers near Shan Chowrangi, Korani Road, Karachi, which

were stopped. The drivers presented the documents of 14 containers, including these two containers, which were cleared from MCC Port Qasim. During the search, the customs of\icials recovered 80,025 kilogram betel nuts worth Rs 200 million. Sources claim it was established beyond doubt that the suspects were involved in smuggling of the contraband betel nuts under the garb of waste and scrap of iron. They got the betel nuts cleared under HS Code 7204.4100. Hence they have, individually and collectively, violated the customs laws.

See next page

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ources say a few Customs of\icials at Port Qasim involved in clearance of restricted goods through green channel started separate investigation of the issue and lodged another FIR no SI/MISC/03/2018/PQ-CIU on 21 Feb in the case to save the skin of the customs of\icials involved especially ADC Yasin Murtaza. As per FIR, Customs team raided a godown belonging to Imran Ameen where containers of betel nuts were offloaded but during the raid, they could not \ind anything there. Sources say FIR of Port Qasim lodged on the same smuggled goods that Preventive had already caught and registered FIR. The 6 containers containing GD number KPPI- HC – 62268 is same as already caught by Preventive.

Sources say this second FIR for the same instance at the behest of ADC Yasin Murtaza of Port Qasim is an attempt to weaken the \irst FIR of preventive and an open attempt to keep the accused away from Preventive so that the accused do not give away the names of gang of green channel. This second FIR is an attempt by Port Qasim to jump into the investigations of the case and tamper evidences and in\luence witnesses.

Sources allege a very weak second FIR is lodged by Port Qasim to save their accomplices from Customs preventive. This FIR says that driver was contacted for information which led to

another godown (and not the same godown which was raided by Preventive). The owner of godown was different. It says that not a single container was there but only small pieces of betel nuts. This weakened the FIR due to weak evidences. Source say as second FIR could replace rather contradicting \irst FIR of preventive which was a very strong FIR with red handed seizure of 6 containers on spot. Now the accused will be taken in custody by Port Qasim itself instead of Preventive and can be released on bail.

Sources claim the main culprits i.e. customs staff have become the investigators of the case. They say in FIR that they lodged FIR on 21st Feb. while they say that the occurrence was of 22nd Feb. They are caught red handed with their manipulation.

How can an FIR be lodged even before the occurrence has taken place? It is like lodging of a dacoity FIR even one day before the dacoity occurrence. Such FIR is possible only by the person who is himself the dacoit and has information even before the dacoity takes place. Sources claim, in fact, Port Qasim FIR hides the name of the main accused person. Whereas it is basic criteria in any FIR under law that 'name' of accused should be given.

Earlier Preventive FIR gave a name of the owner as 'Mr. Mohammad Shoaib Arshad'. But later FIR of Port Qasim for the same occurrence drops the name of the person and gives only a designation of person as 'Proprietor'. This designation is also fake

as this is shown as Pvt. Ltd. company and in any Pvt. Ltd. company there can never be a designation of 'Proprietor'.

Sources allege, obviously, this is a way used by Customs Port Qasim to protect the main accused who is the bene\iciary of the green channel facility. Such people are apparently actual partners of these corrupt of\icials like ADC Yasin Murtaza and hence so much of play is on record to save the main culprits.

Sources claim the website www.citysteeluae.com of this green channel company, which is caught involved in smuggling, indicates that it is not a well established professional company. It does not even have a proper website which is supposed to be face of a professional company. It is beyond imagination how such a company got registered in green channel.

Sources reveal, in the FIR of Port Qasim against this company, it states that proprietor of this company is absconder. FIR was lodged in urgency and date of FIR was given even before the date of occurrence. This means Port Qasim has created an excuse at the time of lodging of FIR itself that they will not arrest this main accused of green channel listed company because he is already an absconder! If the court asks them why the main accused is not arrested then they will say that he was already an absconder even before lodging of the FIR and hence an excuse created from the time of lodging of FIR itself.

Source say when a person who is already an absconder even before lodging of the FIR then how did he get registered with green channel?

It is obvious that only those companies could be registered with green channel which are established organisations and when any issue in goods is identi\ied then those should be traceable and answerable. Now the green channel listed company owner has vanished in thin air being an absconder even from before the FIR is lodged!! Legal importers have demanded that NAB and FIA take up such green channel smuggling cases of ADC Yasin Murtaza, Port Qasim so that such customs of\icials who are the true protectors and bene\iciaries are caught once and for all.

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ollowing is a letter sent by a genuine importer to collector of Customs, Port Qasim Mr. Chaudhry Javed. This is very relevant and interesting.

Importer said, “ADC Yasin Murtaza is still carrying out his illegal activities blatantly despite our reminders to you. For his personal motives agenda vendetta he is harassing genuine importers like us.” [GD NO. KPPI-HC 62811-19-02-2018] He said, “It is an established law that weight of essential packing should be given as tare weight and not counted in value of product.”

Refer to letters of DG customs Valuation and also of Muhammad Zahid, Present member, Customs as given below. The letters also give references of high court judgments on the same lines.

He said, “It is categorically mentioned in these documents the weight of essential packing should be given as tare weight and not added in value of the product. Despite this settled law, ADC Yasin Murtaza is pressuring his juniors not to give essential packing weight as tare weight. He has clearly mentioned that unless we do not ful\ill his personal demands and give him personal favours, he will not give us this basic right under the law. He has even conveyed to us to go to the Supreme Court and get the orders of the honorable court implemented but he will not implement them.”

“He (ADC) knows that going to the honorable Supreme Court will involve time and we cannot keep goods at the port for such a long time because the goods get spoiled and stolen when they are kept at Port Qasim for a span of few days. The customs staff spoils and steals goods at Port Qasim when any genuine importer keeps the goods at the port and goes for legal remedies to the courts,” he added.

“Over and above other personal favours that he (ADC) is asking from us, he is also asking us to give a false declaration under duress that he is not involved in green channel smuggling and that no such smuggling is happening at Port Qasim. He wants to put genuine importers like us under pressure to give such false declarations so as to defeat the process of law,” he added.

The Importer elaborated, “The complaint/ information was shared basically by genuine importers with media and senior officials on 13th Feb 2018. Based on this information, media investigations started into this mega scam of ADC Yasin Murtaza in green channel smuggling which is causing losses of billions of rupees to national exchequer. Also this green channel smuggling by ADC Yasin Murtaza is causing losses to the genuine importers. Such genuine importers are not able to sell their goods in Pakistan markets after paying duties and taxes because their prices are higher. While the green channel smugglers who are associates of ADC Yasin Murtaza are able to sell their goods and capture local markets as their goods are lower priced because they do not pay any duties and taxes to the government exchequer rather apparently only pay a share of profits to ADC Yasin Murtaza and his gang of smugglers.”

The importer said, “One of the illegal motives of ADC Yasin Murtaza in not granting the genuine importers their basic rights is that he wants the casting of genuinely imported products to go higher so that they cannot be sold in local markets. This will give advantage to his associate green channel smugglers to sell their smuggled goods and capture the local markets.” Urgent actions required to save our souls, he concluded.

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ustoms Today unearthed the scam of misuse of green channel facility in which a few senior customs of\icials are clearing a large number of containers loaded with infested betel nuts through green channel at Port Qasim.

After so much coverage by Customs Today, Customs Preventive and Intelligence launched raids on green channel ‘smugglers’ and seized 6 containers of betel buts on 21 February from a godown in Korangi Industrial Area which were cleared through green channel under the protection of a few senior customs of\icers at Port Qasim.

Fourteen containers were cleared through green channel of this company from Port Qasim while only six have been con\iscated yet. At least 188 containers of betel nuts are stuck up at ports.

Customs staff did not implement the import policy in its true spirit as directed by Member Customs Zahid Khokhar and allowed misuse of green channel facility through which importers ‘smuggled’ infested betel nuts in the

country putting health of the citizens on risk.

Sources said hazardous and low quality betel nuts were being imported from India, Nepal and other countries with the help of appraisement and examination staff at Port Qasim in violation of the import policy.

Sources claimed approximately 7 to 9 containers have been cleared through Appraisement East and Appraisement West on daily basis for last few years and a few customs of\icials have been getting Rs 20,000-45,000 ‘speed money’ for clearance of each container.

It is pertinent to mention these low quality betel nuts have been used to prepare hazardous “Paan Masala”, “Main Puri” and “Gutka” causing cancer in the users.

Sources said that plain ‘chalia’ in any form is injurious to heath. It is proved that juices of even good quality ‘chalia’ is carcinogen when mixed with other hazardous items like arti\icial colour, hemical, etc., and it increases the chance to cause dangerous diseases like oral cancer (mostly tongue, cheek and lips), mouth ulcer, maggots in mouth, submucous \ibrosis, etc.

According to sources, betel nut is an edible

item which requires certi\ication by Plant Protection Agency (PPA) for clearance. However, the network of Additional collector Yasin Murtaza at Port Qasim, instead of enforcing PPA certi\icate requirement in true spirit, is clearing the consignments of betel nuts through green channel declaring as scrap.

Meanwhile, the facility of green channel is being misused at MCC-Appraisement Port Qasim under protection of a few senior customs of\icials including ADC Yasin Murtaza as 200 to 300 containers of Iron-Steel scrap are being cleared through green channel despite the fact that these items are not allowed to be cleared through green channel, causing loss to exchequer worth billions.

It is surprising why FBR and Customs highups are not taking action against ‘corrupt’ customs of\icials despite complete proof and timely information.

Different chambers of commerce and importers associations have appealed to the FBR chairman Tariq Pasha and Member Customs Zahid Khokhar to thoroughly investigate the misuse of green channel facility at larger scale and bring the culprits to justice.

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DURING INSPECTION, CONSIGNMENT OF BETEL NUTS FOUND CONTAMINATED WITH HAZARDOUS MOULDS

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FIR LODGED AGAINST ACCUSED FOR CLEARING BANNED BETEL NUTS

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ederal Board of Revenue (FBR) is preparing the \irst draft of 100% scanning project for imported goods specially from India, Afghanistan and Iran. Each and every container will be scanned under this project, it is learnt here. Sources told Customs Today that special scanners will be installed on all border crossings, seaports and customs clearing stations.

Sources told that around 250 million Euros will be spent on this project, however, the project is being delayed till formation of new government.

Meanwhile the PC-1 is being drafted and needed to be approved from the prime minister.

Sources added that FBR will present the draft to prime minister thereafter the Pilot Project will be implemented. Sources further added that with the help of this project, the issues of mis-declaration of goods, the malfunctioning in Afghan Transit Trade and violation and misuse of Green Channel can be resolved. Moreover, 40% of imported goods are cleared on Green and Yellow Channel, however, the misuse of these channels are recently unearthed by Customs Today which caused a serious threat to national security and exchequer. Customs Today extensively covered misuse of green channel smuggling which in\licted a loss of Rs 1000 billion on the national exchequer.

Meanwhile, In a bid to secure the robust revenue collection target for the \iscal year 2018-19, the Federal Board of Revenue (FBR) is going to recruit almost 3000 to 4000 human resource from grade 1 to 16.

Presently, the FBR and sub departments face huge human resource shortfall; one person is assisting almost three of\icers as supporting staff and this state of affairs hinders the departments from showcasing glowing performance regarding revenue collection.

In April this year, the Election Commission of Pakistan had imposed ban on the recruitment of new staff by various departments of the government which now has been lifted. Sources at FBR told Customs Today that serious considerations for starting the recruitment process were underway at different quarters. In this regard, wings and departments including Customs, Inland Revenue and others have been given full liberty to initiate and complete the process in a fair and transparent manner. “The preliminary phases of recruitment process like inviting applications from the candidates, their eligibility tests and others have already been completed last year. In this regard, a third party was hired to evaluate the capacity of the candidates in a bid to ensure transparency and rule of merit; even candidates for the slots of drivers were also given tests through Motorway Police. The \indings of the tests were also shared with the concerned authorities� the source maintained. The source said that concerned authorities were concerned over the possible impression of making recruitments on the recommendations of the previous government; therefore, they were making full efforts to ensure transparency in the recruitment of the staff and of\icers. In this regard, the source said that senior of\icers were willing to ensure fairness in the recruitments to dispel the above mentioned impression. The source further said that the government should support the FBR in this process and all the state organs like ECP and Supreme Court should think a lot before imposing any ban on the recruitments by other state departments because lack of human resource badly affect the performance of those wings or departments. Meanwhile, Chairman Federal Board of Revenue (FBR) Tariq Mahmood Pasha visited Islamabad Chamber of Commerce & Industry and urged upon the business community to take full advantage of tax amnesty scheme as it was a last chance to legalize undeclared assets. He said that the amnesty scheme was focused on business community as public of\ice holders and their dependents were kept out of it, therefore, they should take maximum bene\it from it.

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ustoms Today covered the green channel scam since past many years. The Chief Justice of Pakistan Mian Saqib Nisar took notice of the scam and the court associate sent a letter to the Chairman NAB for necessary action.

A customs high of\icial was denying his role in the mega scam saying that it is the issue of software automation so he is not involved in the scam. But later CT team found that he is also director at Pakistan Revenue Automation (Pvt) Limited called PRAL which develops and controls the green channel related software and system. It was also found that another high of\icial is the mastermind behind the green channel design and system due to his role in the committee of Risk Management System (RMS). This committee designed the green channel policies under the instructions of this top of\icial and now too the committee is managed by of\icials who are working under him.

Sources said mobiles, electronics, liquor, cigarettes, betel nuts, explosive chemicals, etc continues to pour into

country through green channel but finally FBR admitted that millions of containers have been cleared in Green Channel without any examination. In fact, not even scanning of these containers is done by customs.

Sources said when the CJP took notice and the then FBR Chairman Tariq Pasha was asked to submit a reply on green channel issue, he asked the three accused in the case to submit details. Although, it is not allowed anywhere in the world that the accused are made investigators of the case but this happened here due to the powerful ma\ia of green channel.

But DG customs candidly admitted that the green channel is ‘mercilessly misused’ and involvement of Customs of\icers cannot be ruled out. Whereas, on the other hand, customs high of\icial, under a scheme to manipulate the entire investigations, asked the very high of\icial to conduct an audit who is already an accused in the case. This audit was itself a fraud merely to save the corrupt culprits.

Sources said, in the audit, the accused customs high of\icial made his juniors compare

the valuation rulings, PCT codes with the goods cleared in green channel.

But the comparison was done with the declarations made of those goods in green channel and not of the actual goods present in the container. The entire scam of green channel is that the goods declared are totally different from goods present in the container. Like QMobile had mobiles in the container and they declared LED lights. They in fact even admitted this when they were caught. The problem was not of PCT code or valuation of LED. Sources said, in the audit, the customs staff under instructions of customs high of\icials instead of checking what the real goods were inside the millions of containers, they just checked, like in this case, if PCT and value of LED lights were applied on these goods and gave a clean chit to such clearances! Whereas the goods were mobiles and PCT and value of LED lights were applied and zero duties were applied instead of the high duty of mobile. Similarly, they checked PCT code and value of Iron scrap whether applied but the goods were cigarettes or betel nuts or liquor.

47 After this audit of PCT code and values they gave clean chit to even such hazardous materials like chemicals or contraband items like liquor, etc. in the garb of the fraudulent audit. After such audit, the customs high of\icials involved in the scam want to give a clean chit to themselves.

Based on this fraudulent audit, some of the customs of\icials want to mislead and misguide the Honourable Chief Justice of Pakistan and also the Chairman NAB under whose notice already this case of green channel mega scam is pending.

The actual audit should be to \ind out what exactly was there in the more than 10 Million containers released without proper scanning and examination. Customs staff should start tracing the declared goods backwards and also forward. To check backwards, they should check with the respective exporters and exporting countries whether they have exported the same goods that were declared in green channel at import stage in Pakistan? If goods exported were mobiles and the same imported in green channel at Pakistan was LED lights then it would be clear that fraud has taken place. But in backward checking there are some hurdles that customs department will have to overcome: 1. Exporters side with the importers rather than FBR and hence they may not co-operate with FBR authorities.

2. Many exporting countries’ customs authorities do not examine the goods

properly because they do not have risk of losing revenue. Mostly exports enjoy tax free regime.

3. The information provided by exporting countries are mostly not admissible as evidence in Pakistan. Hence, legal action and recovery would become dif\icult.

Hence, the above mentioned backward method will be effective only 10% if customs department puts its efforts appropriately in this direction. Even 10% effectiveness is worth doing as the amounts involved in the green channel scandal is really huge.

But the second method which is the forward method, will be very effective. Customs should trace the goods released under green channel in a forward manner as to where have the goods gone. Like around 750 containers of LED lights cleared in green channel to be checked where they have gone in Pakistan in the supply chain from importer to whole seller to retailer.

The goods brought by green channel are in Pakistan only and not re-exported hence we can track those goods easily on paper \irstly and then physically at the end location. If the importer says he cleared 750 containers of LED lights then he must have documents to show sale of the same to the wholesaler or retailer. The wholesalers and retailers can be asked to con\irm whether they have bought these LED lights or they have bought Mobiles. Those thousands of iron scrap containers imported in green

channel should be tracked as to where and how they have been used in Pakistan.

Where those thousands of containers are actually cigarettes, liquor, electronics, dangerous chemicals then how will the green channel smuggler be able to prove his sales of scrap? This second method of forward tracking is very effective and also incriminating evidence can be collected against those who are clearing contraband goods under green channel.

This ways by tracking the goods backward and forward then proper audit of green channel clearances is possible and not by arti\icially comparing the PCT code and valuations with the goods declared.

Also, since there are millions of containers to be audited hence \irst a priority list of audit should be made. In this list those goods should be included that have been imported in green channel through switch B/L. Secondly, those goods should be included that have zero or up to 5% duty tariff. Those who are clearing contraband items or high value items in green channel without screening or examination are declaring them in very low or zero tariff. Also, scrap consignments should be on priority list of audit.

Genuine importers once again appealed to the CJP and the Chairman NAB to take notice of the second fraud of audit within the mega scam of green channel. A fraud to cover up their previous frauds with the nation!!

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few customs of\icials at Port Qasim have turned a blind eye on clearance of banned and non-certi\ied goods worth billions of rupees through green channel by declaring as scrap.

Customs Today reported extensively on misuse of green channel facility and unearthed the scam in which a number of containers of betul nuts, acetic anhydride and iron-steel were being cleared through green channel.

After so much coverage by Customs Today, Customs Preventive and Intelligence launched raids on green channel ‘smugglers’ and seized a number of containers cleared through green channel which shows to what extent this green channel smuggling is being carried out with the support of a few senior customs of\icers at Port Qasim.

Customs Today reported on 14 February about another scam of clearance of illegal/banned goods by declaring as scrap through green channel, Customs Intelligence raided a godown on 16 February and seized containers of steel and iron scrap.

Customs Preventive raided different godowns and seized 6 containers of betel nuts cleared under HS Code 7204.4100 through green channel. Suspects namely Muhammad Shoaib Arshad, owner of M/s City Steel UAE Mills (Private) Limited, Muhammad Arshad, owner of M/s A.F Enterprises, Muhammad Tariq, Sohrab Khan, Amjad Khan and others booked in a betel nuts smuggling case which they had imported in the garb of waste and cast iron scrap.

According to the FIR No ASO-58/2018 lodged on 21 February, an ASO team found two containers near Shan Chowrangi, Korani Road, Karachi, which were stopped. The drivers presented the documents of 14 containers, including these two containers, which were cleared from MCC Port Qasim. During the search, the customs of\icials recovered 80,025 kilogram betel nuts worth Rs 200 million.

It was established beyond doubt that the suspects were involved in smuggling of the contraband betel nuts under the

garb of waste and scrap of iron. They got the betel nuts cleared under HS Code 7204.4100. Hence they have, individually and collectively, violated the customs laws.

Sources said huge scam of green channel smuggling could not be carried out without the help of the customs of\icials so their names should also be mentioned in the FIR report.

A few Customs of\icials at Port Qasim involved in clearance of restricted goods through green channel made a plan to save themselves from this scam. For this purpose they started separate investigation of the issue and lodged another FIR no SI/MISC/03/2018/PQ-CIU on 21 Feb in the case to save the skin of the customs of\icials involved especially ADC Yasin Murtaza. As per FIR, Customs team raided a godown belonging to Imran Ameen where containers of betel nuts were off-loaded but during the raid, they could not \ind anything there.

FIR of Port Qasim lodged on the same smuggled goods that Preventive had already caught and registered FIR. The 6 containers containing GD number KPPIHC – 62268 is same as already caught by Preventive. This second FIR for the same instance at the behest of ADC Yasin Murtaza of Port Qasim is an attempt to weaken the \irst FIR of preventive and an open attempt to keep the accused away from Preventive so that the accused do not give away the names of gang of green channel. This second FIR is an attempt by Port Qasim to jump into the investigations of the case and tamper evidences and in\luence witnesses.

Customs Today had reported earlier that ADC Yasin Murtaza, under a plan, was keeping entire staff & place busy with futile re-examinations and re-assessments of genuine importers so that his accomplices from the green channel smugglers get a good chance to smuggle goods without examination in green channel. This is giving rise to huge smuggling through green channel.

Legal importers have demanded that NAB and FIA take up such green channel smuggling cases of ADC Yasin Murtaza, Port Qasim so that such customs of\icials who are the true protectors and bene\iciaries are caught once and for all.

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FIRST FIR ASO-58/2018 LODGED AFTER CUSTOMS PREVENTIVE SEIZED 6 CONTAINERS IN DIFFERENT RAIDS ON FEB 21

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SECOND FIR SI/MISC/03/2018/PQ-CIU LODGED ON SAME DATE BY ADC PORT QASIM TO MANIPULATE THE FIRST FIR ASO-58/2018. WITNESS IN FIRST FIR MR IMRAN AMEEN MADE ACCUSED AND ARRESTED IN THE SECOND FIR TO INFLUENCE THE FIRST FIR INVESTIGATIONS AND SAVE THE REAL CULPRITS. THIS FIR DECLARES THE TEAM FOUND NO CONTAINERS OF BETEL NUTS IN THE GODOWN

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CUSTOMS I&I SEIZES BIGGEST CONSIGNMENT CONTAINING 612033KGS OF SMUGGLED BETEL NUTS OF POOR QUALITY, INFESTED AND UNFIT FOR HUMAN CONSUMPTION

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he accused Customs of\icials who were acquitted by the court in ISAF/NATO containers mega scam are alleged to be still indulged in same practice of clearing the containers through TP, opening up seals of those containers enroute to Lahore or other ports of the country and replacing the smuggled goods with other items. These accused were acquitted as customs prosecution willfully weakened the case by not producing evidence/witnesses against the accused before the court. Genuine importers have asked the NAB to launch investigation against Customs staff including Noor Akbar Mahar, accused in the ISAF/NATO missing containers case, in a similar TP mega smuggling scam.

According to details, the court announced judgment of case no 72/2011 against suspects namely Noor Akbar Mahar, son of Ghulam Akbar Khan; Syed Arshad Ali, son of Syed Shamshad Ali; Mehfooz Ali Khan, son of Masood Ali Khan; Sardar Amin Farooqui, son of Jalil Ahmed; Munir Ahmed Brohi, son of Hassan Khan; A. Aziz Umrani, son of Muhammad Mithal; Muhammad Abbas Khan, son of Noor Ahmed Khan; Fareh Shoukat, son of Shaukat Ahmed; Shoukat Hussain, son of Muhammad Hussain; Muhammad Yasin, son of Gulab Khan; Shahid Rauf, son of Muhammad Yaseen Khan; Saeed Babar, son of Faqee Muhammad and Muhammad Irfan, son of Ha\iz Abdul Majeed.

According to the verdict, during the investigation of the ISAF/NATO containers scam conducted by the probe committee of FBR, pursuant to the directions of the Supreme Court, initial investigations were conducted which transpired that Afghan Transit Trade consignments were got cleared by clearing agents as per noti\ied procedure, the consignments were cleared from MCC Appraisement. During the investigation, it revealed that all consignments were \irst cleared in the garb of Afghan Transit Trade and then were smuggled and disposed of inside Pakistan, causing colossal loss of revenue to the state exchequer, it added.

The court further observed that “from evidence brought on record it is clear that complainant had no personal knowledge about commission of the offense by the accused persons nominated in this case and he simply signed the draft copy of FIR received from probe committee FBR, of\ice and lodged the FIR on the

instruction of the probe committee, the evidence of complainant is of totally no use for the prosecution as the witness has himself no knowledge of the crime allegedly committed by the accused persons.”

It is signi\icant to note that only NLC was responsible to transport the consignments to Afghanistan but from the record it appears that they failed to perform their duty and no investigation was conducted from the NLC of\icials who were responsible for transportation of the consignments to Afghanistan.

Even the drivers of the vehicles engaged in transportation who played key role in the alleged crime were not nominated as an accused in this case either by the probe committee or by the complainant, investigation of\icer even failed to collect the import documents particularly GD which could show the consignments was imported by Afghan Importers, in absence of the GD the charge cannot be proved against any of the accused who are customs of\icials/staff and clearing agents, there is absolutely no evidence against the accused persons present in court, therefore, prosecution miserably failed to prove its case against them”. In view of these \indings and after evaluation of the summary evidence adduced by the prosecution, the court concluded it had been established beyond any reasonable doubt that the prosecution had miserably failed to prove its case against the accused, who were accordingly acquitted of the charge. It is pertinent to mention here that the then Chief Justice Iftikhar Muhammad Chaudhry had taken up the case relating to import of contraband items under the garb of food supplies meant for the International Security Assistance Force (Isaf) in Afghanistan and ordered the FBR chairman and the Federal Tax Ombudsman to submit comprehensive reports on the steps taken to implement recommendations

made earlier by the FTO. In his report on Jan 19, 2011, Dr Shoaib Suddle, the then FTO, had put the recoverable amount at Rs54.73 billion accumulated over the past four years owing to pilferage of containers that entered the country in the garb of Afghan Transit Trade (ATT). The FTO had also recommended in his report to give exemplary punishments to the accused customs of\icials. Now all those accused customs of\icials including Noor Akbar Mahar are acquitted by the court and they are still providing a helping hand to the smugglers of banned items. These of\icials are clearing those containers through TP and replacing the smuggled goods enroute to other cities.

Customs Today has received a video in which it can clearly be seen that a person was opening up the seal of a container which was cleared through TP from Karachi ports and meant to be delivered to other cities. Then the same person skillfully re-sealed the container using the same seal that was removed by him. This tactic was only being used in Pakistan as there was no chance of re-using the same seal in other countries. This also shows that this is not a single case of TP smuggling but it is a pre-planned tactic being used by smugglers in connivance with customs staff.

Customs Today extensively raised the issues of misuse of green channel, yellow channel and TP facilities and Chief Justice Mian Saqib Nisar recently took notice of green channel smuggling and ordered the relevant authorities to submit reply within 10 days.

Genuine importers who are suffering huge losses at hands of these corrupt of\icials including Noor Akbar Mahar appealed to the Supreme Court and the NAB to take prompt action against these culprits of ATT mega scam who are still ‘involved’ in smuggling of banned items through green channel and TP.

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few senior customs of\icials are involved in unscrupulous activities at Port Qasim. They are allowing smugglers to throw their smuggled goods in the markets after getting clearance through green channel under protection of a few customs of\icials.

They are clearing these illegal or banned goods by declaring as scrap.

This is causing more than Rs 1,000 billion loss to national exchequer as revenue through legal imports is decreasing.

During last few weeks, Customs Today reported extensively on misuse of green channel facility and unearthed the scam in which a number of containers of betul nuts, acetic anhydride and iron-steel were being cleared through green channel.

After so much coverage by Customs Today, Customs Preventive and Intelligence launched raids on green channel ‘smugglers’ and seized a number of containers cleared through green channel which shows to what extent this green channel smuggling is being carried out with the support of a few senior customs of\icers at Port Qasim.

On 21 February, the scam of misusing green channel at Appraisement Port Qasim was proved when Customs Preventive team raided a godown in Korangi Industrial area in Karachi and con\iscated six containers \illed with smuggled betel nuts which were cleared under the garb of scrap from Port Qasim.

Qamar Thallo, spokesperson for Pakistan Customs Preventive, told Customs Today that investigations have been broadened due to the

possibility that smugglers might have cleared many other containers through green channel.

It is worth mentioning that 188 containers of betel nuts are stuck up at ports. Since legal import is stopped the goods are being smuggled. The importer namely M/s Jebel Ali dumped the containers in Korangi area where the raid took place.

In the meantime, the customs of\icials involved in the scam of clearing the consignments become more active to save their skin including ADC Yaseen Murtaza and others.

Sources claimed that ADC Yasin Murtaza was taking huge amounts from these green channel smugglers.

According to sources, 14 containers were cleared through green channel of the said company from Port Qasim while only six have been

when Customs Appraisement Port Qasim seized 15,520 liters of dual use precursor acetic anhydride, which was being cleared through green channel. Acetic anhydride is a main ingredient for preparing narcotics substances, especially heroin.

According to the FIR lodged against the importer and its clearing agent, during the discreet monitoring of the import data, a suspicious consignment comprising a container no. CARU3757402 (1X20’) said to contain item having a vague description of “summer fluid” shipped from Poland bearing address of Peshawar based consignee namely M/s Pak Traders.

See next page

con\iscated yet.

Meanwhile, another scam of the green channel facility unearthed

• Customs Today highlighted that banned items like health hazardous items, explosives, heroin are being smuggled from Port Qasim under green channel under the protection of ADC Yasin Murtaza. Based on prior media information, Customs preventive carried out raid and caught 6 containers Betel Nuts which were admittedly smuggled through Port Qasim green channel.

• First message of press conference was received from custom official on 24th Feb. at 10:05am and the second message cancelling the press conference was received at 11:40am the same day.

• Customs Preventive silenced within a gap of around 1 hour!!!

• Lobby of ADC Yasin Murtaza is very strong and silencing everybody who wants to highlight this mega scam of green channel smuggling at Port Qasim under protection of this strong ADC.

62 The Bill of Lading No MSCUVQ695966 of the shipment also showed a non-existent PCT Code and an incomplete contact number of the consignee. Moreover, the address was also very general. Owing to the suspicious declarations, the container was blocked on 24.01.2018 in the system by R&D Section, however no one turned up for clearance till 31.01.2018.

Later on keeping in view the suspicious nature, physical examination of the consignment was carried on 31.01.2018 by R&D staff in the presence of terminal representatives and independent surveyors, which led to the recovery of huge quantity of precursor “acetic anhydride” tested and veri\ied by using the First Defender Diagnostic Kit. In view of foregoing un-refutable evidence on record, it is evident that M/s Pak Traders, Peshawar has made deliberate attempt to import restricted/banned item i.e. acetic anhydride value amounting to $1.5 million besides importing the rusticated item. The willful mis-declaration value and classi\ication by M/s. Pak Traders, Peshawar and their associates have therefore, violated provision of Section 2(s), 16, 32, 79, 80, 192 of the Customs Act, 1969. Therefore, FIR to this effect is lodged and efforts are being made to arrest the culprits involved in the crime. The recovered goods i.e. Acetic Anhydride is importable only by authorized industrial consumers as per Sr. No. 19 of Appendix-B read with paragraph 5(B)(i) and paragraph 11 of the Import Policy Order-2016. Thus it became quite clear that the goods have been imported in violation of the Import Policy Order-2016 and the importer had attempted to import the restricted precursor by mis-declaration of description and PCT code by contravening the provisions of Section 2(s), 16 and 32 of the Customs Act, 1969 read with section 7 and others relevant provision of Control and Narcotics Substance Act, 1997.

Seizure of huge quantity of acetic anhydride worth USD 1.5 million in the international market is unprecedented in this Collectorate’s history.

According to customs of\icials, if Peshawar customs of\icers don’t have ID and I-Form record of M/s Pak-Traders it means the importer company is totally fake and every person involved in the scam is part of the same racket including supplier, shipping company and the relevant customs of\icials because if any importer doesn’t have ID it needs one time approval from DC, ADC or collector to import a consignment for once without ID. In another raid, acetic anhydride was discov-

ered in a 20-foot container having 21.7 metric tons of acetic anhydride on January 9, months after it had arrived at Port Qasim from Tanzania.

The container was declared to contain “acetic acid glacial”, but the Port Control Unit of the Model Custom Collectorate, upon receipt of credible information, pro\iled and searched it. The container, imported from Dar es Salaam, Tanzania, in November 2015 was later shifted to the NLC Container Terminal on Mai Kolachi Road, Karachi.

The statement said the consignment was primarily suspected in view of the fact that traditionally Tanzania was not a producer of acetic acid. The consignee of the shipment was said to be in Sialkot.

This is by far the biggest quantity of acetic anhydride sized anywhere in the world, including Pakistan. Acetic anhydride is used as the major precursor for the production of heroin and is also one of the major chemicals used in the manufacturing of IEDs. It was, however, yet to be determined what the actual purpose “of this sinister attempt” was, said the statement. The value of the seized chemicals is more than Rs860 million.

The Pakistan Customs is a major participant in “UNODC-WCO Container Control Programme” and also a key partner of World Customs Organisation’s “Programme Global Shield”.

In the past 18 months, INCB has detected a massive increase in worldwide diversion attempts and seizures involving acetic anhydride, a key chemical in the manufacture of heroin. Numerous countries in Asia, Africa, South America and Europe have been targeted by traf\ickers searching for suppliers of the substance.

Acetic anhydride is listed in Table I of the 1988 Convention because of its frequent use in the illicit manufacture of heroin, but is also known to have been used during the process of illicit manufacture of methamphetamine and methaqualone.

The chemical is also monitored by governments and international organisations because of its suspected use in the manufacture of improvised explosive devices (IEDs). To reduce heroin availability, the United Nations (UN) has encouraged nations to control acetic anhydride, an essential ("precursor") chemical typically necessary to the drug's production. This effort, a major environmental prevention policy, has received little evaluation. The United States, per the UN's lead, implemented acetic anhy-

dride regulation in 11/1989.

Acetic Anhydride is brought regularly to Pakistan ports using green channel facility.

One of such consignments luckily got picked recently for examination by system and the massive in\lux got unearthed.

This chemical is used in processing for narcotics/heroin as well as for Improvised Explosive Devices (IEDs) that are used by terrorists. Only one such consignment of 15,520 litres got luckily unearthed.

There may be more than 1,000 such consignments that got already cleared in green channel but Customs Port Qasim did not try to trace them back. This means hundreds of litres of this highly dangerous chemical is allowed to import and clear through green channel due to involvement of some customs officials in illegal activities at Port Qasim.

Meanwhile, the facility of green channel is being misused at MCC-Appraisement Port Qasim as 200 to 300 containers of Iron-Steel scrap are being cleared through green channel despite the fact that these items are not allowed to be cleared through green channel, causing loss to exchequer worth billions.

Iron and steel scrap was also luckily unearthed while clearing through green channel. This one consignment meant a loss of Rs23.592 million to national kitty. There is a probability that 1000 such consignments already cleared but luck did not support Pakistan. This means a loss of Rs 23.592 x 1000 = Rs. 23.592 billion!!

Port Qasim did not try to trace back such huge revenue loss of more than Rs. 23 billion because of involvement of senior customs staff at Port Qasim including ADC Yasin Murtaza. A few senior of\icials are backing the smuggling through green channel that’s why inquiry of above scam by FIA/NAB is not supported by Port Qasim senior of\icials.

This is only tip of the iceberg. Much more remains to be unearthed. It is surprising why FBR and Customs high-ups are not taking action against ADC Yasin Murtaza despite complete proof and timely information. Different chambers of commerce and importers associations have appealed to the FBR chairman Tariq Pasha and Member Customs Zahid Khokhar to look into the scam of green channel facility as huge quality of restricted and banned items were being poured into Pakistan through green channel and it could not happen without the help of customs of\icials. They also demanded of Zahid Khokhar to thoroughly investigate the misuse of green channel facility at larger scale and bring the culprits to justice.

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FIR of banned betel nuts cleared through green channel

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Green channel smuggling by declaring goods as iron and steel scrap

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majority of importers is upset due to the non-professional behavior of Principal Appraiser Dost Muhammad who is currently performing his duties at Customs Appraisement East R&D section.

The importers are of the view that appraisers like Dost Mohammad are bringing a bad name to the Customs Department.

Shaan Sanitary Managing Director Musa Ali Jan said it is not the only case of betel nuts, the principal appraiser and his staff members ask importers to bring documents of consignments again and again with an intention to get ‘bribe’. He appealed the customs high-ups to take action against Principal Appraiser Dost Muhammad.

Farooq Ahmed Shah, M/s SG Traders, SITE area Karachi, said all importers are on the same page that the FBR and customs high-ups should take action against this Principal Appraiser because he didn’t do anything to stop smuggling rather he was involved in facilitating the smugglers and discouraging legal importers. He always de-

manded bribe to ful\ill his illegal motives.

Moqeem Khan, CEO of Anjum Associates Federal B Area Karachi, said that he had submitted three complaints against Principal Appraiser Dost Muhammad in 2017. He said that he also wrote to the customs higher authorities that the importers were facing problems, as Principal Appraiser Dost was always using different methods to harass legal importers. A group of importers KATI (Korangi Association of Trade and Industry) said that some importers have submitted complaint against Dost Muhammad. He always stopped legal consignments and demanded money for clearance of consignments. In this case, importers faced a lot of problems in clearance of their consignments. “We demand the higher authorities to do something and take action against Dost Muhammad,” they said.

Managing Director of Hilal Leather Korangi Industrial Area Karachi, Amir Mansorii, said Dost Muhammad is a big stain of Customs Department’s face. He said, “I have personally faced the corrupt Principal Appraiser \ive months ago when I was engaged in clearance of consignment. He called me in his of-

\ice with all documents of my consignments, while I had submitted all the documents one week ago. His intention was to get bribe”.

Meanwhile, former President Multan Chamber of Commerce and Industry Khawaja Jalaluddin Roomi said Corruption of Principal Appraiser Dost Muhammad, Incharge R&D section of the Customs Appraisement East Collectorate, is posing serious threat to the national security as he is involved in smuggling of hazardous material in the country. He said Principal Appraiser Dost Muhammad was working against the state through clearance of hazardous material in the country after taking huge bribe and his case should be handed over to national security agencies.

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arachi East Collectorate R&D Principal Appraiser Dost Muhammad shut his eyes on trillions of rupees smuggling of banned items through the port.

Smugglers are working hand in glove with Dost Muhammad to smuggle goods like hazardous chemicals, betel nuts, high value and banned items. They are removing these goods through TP from Karachi East Collectorate, without any checking, with the help of Dost Muhammad, Incharge R&D Department.

Customs Today unearthed the misuse of green channel, yellow channel and now TP facility but FBR and Customs high-ups paid no heed to impartial media coverage against corrupt practices at Karachi ports by its

own staff. Banned and restricted items including dangerous chemicals, betel nuts and drugs have been poured into Pakistan through green channel & yellow channel, showing a close connection of these crooked customs elements with smugglers.

Now they are removing these goods through TP from Karachi East Collectorate, without any checking.

TP means Transshipment Permit and it is used in smuggling of banned items from the port because TP is not checked at Karachi port. Customs of\icials put a seal at the door of the container as these goods would be checked at its destination like Lahore where the clearance would take place.

Smugglers take the container \irst to their own warehouse to remove the banned goods and

then replace it with iron and steel scrap and close the walls of the container. From their godown they send the container to the Lahore dry port where goods are cleared smoothly as it contains iron and steel scrap as declared at Karachi east collectorate.

R&D department is responsible to keep a check on documents and data of green channel, yellow channel, red channel to avoid any unscrupulous activity through these channels.

But Dost Muhammad does nothing to stop any wrongdoing through these channels.

Sources said despite having all the data available to Dost Muhammad where he can easily catch the fraud of TP goods still he knowingly is not catching them rather he is facilitating them.

Sources said with available

data, R&D Department can tell that a particular TP is fraud: Port of loading can be matched with the items. It is known that certain countries export certain items. Like Bulgaria exports copper raw and cable. If an unusual product is shown imported from a port of loading that does not generally export the particular item then that TP consignment can be checked.

To hide the actual port of loading most of the smugglers change the exporting country name to ‘Jabel Ali’. This is called ‘switch B/L’. The goods are coming from a different location but the actual B/L is hidden by the smuggler and a new B/L is made by him and shown on record.

Most of the countries do not allow using their name as port of loading when in switch B/L. Only rare trading countries like

67 ‘Jabel Ali’ allow such a mechanism of switch B/L. Also shipping companies are involved in it. They provide switch B/L facility specifically to only those customers who inform them that the particular item is banned at the port of destination.

If a person wants to bring betel nuts from India, he will inform the shipping company that these betel nuts are banned in Pakistan and hence he wants to have a ‘switch B/L’. The shipping companies generally do not allow ‘switch B/L’ facility but with such request they provide the facility.

Now the goods would be declared as ‘iron & steel scrap’ from ‘Jabel Ali’ and will be cleared in green channel or in TP. The B/L will show that it has come from Jabel Ali. Even Jabel Ali authorities do not care and allow using their name as port of loading in the ‘switch B/L’.

But Dost Muhammad at R&D has full data and he can catch this fraud. He also has the container number with him on record.

Through this container number he can exactly track from where the container has started to move.

He can track the container that it moved from India but the B/L and declaration is showing Jabel Ali. The weight of container is shown in R&D data from where

they can identify whether the goods shown can be true. Iron and steel weight is different from cloth weight.

Some heavy items cannot be transported in 40 feet container.

The weight is more of these items while its size is less. These items are transported only in smaller containers like 20 feet containers.

When the R&D data shows such list of items coming in 40 feet then they can hold them.

When smugglers get their banned/smuggled items at Karachi East Collectorate then they know that the data is available to Dost Muhammad at R&D division of the collectorate. How is it possible that the smugglers get their billions of rupees worth of goods to the port while they know that Dost Muhammad can catch their green channel and TP goods based on that data? This is not possible unless they are assured by the relevant customs staff like Dost Muhammad to bring the goods without worry and that their goods would not be stopped and their data would be ignored by Dost.

Without internal support of Customs staff the smugglers would never take the risk of billions of rupees worth of their goods. FBR and Customs high-ups must take prompt action to stop these illegal activities at Karachi East Collectorate.

Meanwhile, the business com-

munity of South Punjab is seriously aggrieved by non-professional behaviour of Principal Appraiser Dost Muhammad. It was stated by All Pakistan Anjuman-e-Tajiran Chairman Khawaja Suleman Siddiqui while talking to Customs Today on transshipment mega scam.

Khawaja Suleman said that R&D Department is responsible for checking documents and data of consignments cleared through the green channel, yellow channel and TP, but Dost Muhammad did not do anything to stop alleged smuggling through these channels. He said that some corrupt customs of\icials like Appraiser Dost Muhammad were allegedly operating their parallel smuggling networks for illegal clearance of contraband items like dangerous chemicals and betel nuts. He said that some corrupt customs of\icials were serving at key posts and a few high ups of the Federal Board of Revenue (FBR) have given them ‘free hand’ to carry out corrupt practices. It is unfortunate that hundreds of customs of\icials are facing inquiries on serious charges of corruption and they are still posted on key posts for managing their smuggling network which is continuously causing huge revenue loss to the national exchequer. He said that he was disappointed over the posting of

corrupt of\icials in the Customs Department, including appraisers, examiners, assistant collectors, deputy collectors, additional Collector and others. Involvement of customs of\icials in the smuggling is like \inancial terrorism in the country, he said, adding that “every kind of smuggling activity is devastating the national economy.”

Khawaja Suleman said that at Karachi Port, the staff was involved in clearance of banned and prohibited items which might cause threat to public safety. Unfortunately, the government has failed to implement any sound policy against corrupt of\icials like Dost Muhammad in the Customs Department and complaints by several importers and businessmen revealed that the Customs high ups had not taken any action against them.

He said that major manufacturers in Pakistan cannot compete with the kind of prices available in the market for the imported raw material. He said, “We are also responsible for giving bribe to corrupt of\icers in order to get the legal work done”.

He added that the FBR did not take \irm action against its corrupt of\icials even after getting concrete evidences and NAB had also failed to curb corruption in the country.

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mugglers are working hand in glove with Karachi East Collectorate R&D Principal Appraiser Dost Muhammad to smuggle goods like hazardous chemicals, betel nuts, high value and banned items.

They are removing these goods through TP from Karachi East Collectorate, without any checking, with the help of Dost Muhammad, Incharge R&D Department.

TP means Transshipment Permit and it is used in smuggling of banned items from the port because TP is not checked at Karachi port.

Customs of\icials put a seal at the door of the container as these goods would be checked at its destination like Lahore where the clearance would take place. Smugglers take the container \irst to their own warehouse to remove the banned goods and then replace it with iron and steel scrap and close the walls of the container.

From their godown they send the container to the Lahore dry port where goods are cleared smoothly as it contains iron and steel scrap as declared at Karachi east collectorate.

R&D department is responsible to keep a check on documents and data of green channel, yellow channel, red channel to avoid any unscrupulous activity through these channels. But Dost Muhammad does nothing to stop any wrongdoing through these channels.

Sources said despite having all the data available to Dost Muhammad where he can easily catch the fraud of TP goods still he knowingly is not catching them rather he is facilitating them.

Sources said with available data, R&D Depart-

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few ‘corrupt’ customs officials at Karachi ports have started clearing smuggled goods through ‘TP’ as they have changed their action plan of clearing illegal goods from ‘green channel’ and ‘yellow channel’. This nexus of corrupt

ment can tell that a particular TP is fraud: 1. Port of loading can be matched with the items. It is known that certain countries export certain items. Like Bulgaria exports copper raw and cable. If an unusual product is shown imported from a port of loading that does not generally export the particular item then that TP consignment can be checked.

2. To hide the actual port of loading most of the smugglers change the exporting country name to ‘Jabel Ali’. This is called ‘switch B/L’.

The goods are coming from a different location but the actual B/L is hidden by the smuggler and a new B/L is made by him and shown on record.

Most of the countries do not allow using their name as port of loading when in switch B/L. Only rare trading countries like ‘Jabel ALI’ allow such a mechanism of switch B/L. Also shipping companies are involved in it.

They provide switch B/L facility speci\ically to only those customers who inform them that the particular item is banned at the port of destination. If a person wants to bring betel nuts from India, he will inform the shipping company that these betel nuts are banned in Pakistan and hence he wants to have a ‘switch B/L’. The shipping companies generally do not allow ‘switch B/L’ facility but with such request they provide the facility. Now the goods would be declared as ‘iron & steel scrap’ from ‘Jabel ALI’ and will be cleared in green channel or in TP. The B/L will show that it has come from Jabel Ali. Even Jabel Ali authorities do not care and allow using their name as port of loading in the ‘switch B/L’.

But Dost Muhammad at R&D has full data

officials has been playing in the hands of smugglers at Karachi East Collectorate.

Customs Today unearthed the misuse of green channel, yellow channel and now TP facility but FBR and Customs high-ups paid no heed to so much media coverage against corrupt practices at Karachi ports by its own staff.

Banned and restricted items including dan-

and he can catch this fraud. He also has the container number with him on record. Through this container number he can exactly track from where the container has started to move. He can track the container that it moved from India but the B/L and declaration is showing Jabel Ali. 3. The weight of container is shown in R&D data from where they can identify whether the goods shown can be true. Iron and steel weight is different from cloth weight.

4. Some heavy items cannot be transported in 40 feet container. The weight is more of these items while its size is less. These items are transported only in smaller containers like 20 feet containers. When the R&D data shows such list of items coming in 40 feet then they can hold them.

When smugglers get their banned/ smuggled items at Karachi east collectorate then they know that the data is available to Dost Muhammad at R&D division of the collectorate. How is it possible that the smugglers get their billions of rupees worth of goods to the port while they know that Dost Muhammad can catch their green channel and TP goods based on that data?

This is not possible unless they are assured by the relevant customs staff like here Dost Muhammad to bring the goods without worry and that their goods would not be stopped and their data would be ignored by Dost.

Without internal support of Customs staff the smugglers would never take the risk of billions of rupees worth of their goods. FBR and Customs high-ups must take prompt action to stop these illegal activities at Karachi East Collectorate.

gerous chemicals, betel nuts and drugs have been poured into Pakistan through green channel & yellow channel, showing a close connection of these crooked customs elements with smugglers.

Now they are removing these goods through TP from Karachi East Collectorate, without any checking.

69 06 TP means Transshipment Permit and it is used in smuggling of banned items from the port because TP is not checked at Karachi port. Customs of\icials put a seal at the door of the container as these goods would be checked at its destination like Lahore where the clearance would take place.

In TP smuggling, the GD-TP is filed at the collectorate where the goods have arrived like Karachi east collectorate. The smugglers file wrong goods. Like when banned betel nuts or liquor say weighing 8 tons is in the container, then they file iron scrap weighing 8 tons. The goods are released from the port without checking.

According to S.R.O.174(I)/2013, the importer has 7 days to make the goods reach the port of destination. It generally takes only 3 days for a container to reach Lahore. Hence, the smugglers take the container \irst to their own warehouse.

They have lot of time available hence they peacefully remove the walls of the container through special equipment. Then they remove the banned goods like harmful betel nuts, liquor, drugs etc. and then replace it with 8 tons of iron and steel scrap and close the walls of the container. Then from their godown they send the container to the Lahore dry port. At Lahore dry port, the goods are cleared smoothly as it contains iron and steel scrap as declared at Karachi east collectorate.

Earlier there was also a question that whether there is a department within the collectorate to monitor data, docs, etc. so that such smuggling do not occur at the ports itself? Yes, there is a department at Karachi East Collectorate called R&D (research and development). Its primary duty is to closely supervise the data, docs, etc. so that no smuggling happens using green/yellow channel

F

ederal Board of Revenue's (FBR) Customs Management Wing has forwarded a report to Member Customs Zahid Khokar regarding Appraiser Dost Mohammad’s corruption and its media coverage, recommending investigation into the matter.

Of\icial sources told Customs Today that while considering the media coverage of corruption scandals of Appraiser Dost, the Customs Management Wing has forwarded

or using TP. But this department is controlled by Dost Muhammad, the principal appraiser there who is a corrupt of\icial and also unquali\ied person for the post.

Customs Today recently received a video where it could be clearly seen that a container of betel nuts was seized but customs staff was negotiating to release the container after taking bribe. Betel nuts were hidden under chemicals so that it can be cleared under the garb of allowed low value chemicals.

This video is important as customs staff is seen in that video around the smuggled drums of betel nuts that are hidden inside under the chemicals. Customs staff is saying that these betel nuts were caught because ‘negotiations’ failed. Obviously these ‘negotiations’ are about deciding exact bribe amount to be paid. This is at PICT port which falls under the Karachi east collectorate where Dost Muhammad handles R&D department. This R&D department is responsible to keep a check on documents and data of green channel, yellow channel, red channel to avoid any unscrupulous activity through these channels.

But he did nothing to stop any wrongdoing through these channels. Following is a letter of an importer sent to the Collector Karachi Appraisement East who has clari\ied how Dost is a criminal and corrupt person and also how he is unquali\ied to be placed at the post: We have already apprised you that Mr. Dost Muhammad who is presently serving as incharge of R&D department is involved in a lengthy series of serious crimes: 1. He blackmails the genuine legal importers to ful\ill personal agenda.

2. He spreads false information and propaganda against the legal importers merely to

achieve personal goals.

3. He is abusing his of\icial post so as to achieve personal objectives.

4. He claims to be running parallel commercial activities which are not allowed under the law. It is obvious that he is protecting those activities by abusing his of\icial post.

5. He is incharge of R&D department whose primary work is to check data of shipments and ensure that green channel, yellow channel and TP smuggling does not occur at the port. But instead of controlling such smuggling at the port, he is protecting and facilitating such smugglers.

6. He is of\icially a junior post person but illegally assigned to work at a senior post in R&D. This is one reason why above 3 kinds of smuggling does not stop even at your port despite your efforts. Such assignment at a higher post is not only illegal but also shows his powerful corrupt backing and lobby.

7. He is running a clearing agency under the name of his brother. He protects, using his of\icial post, all the illegal work conducted there.

This letter proves how smugglers bring their billions of rupees worth goods at Karachi ports without any hesitation and with the support of corrupt customs officials like Dost Muhammad. They get full support and patronage from these corrupt officials, otherwise they could have smuggled these goods from long porous borders.

Legal and genuine importers appealed to the NAB and FIA to take prompt action against corrupt principal appraiser Dost Muhammad to catch red-handed the hundreds of containers filled with illegal goods at Karachi East Collectorate.

the continues media coverage report regarding the corruption of Dost and recommended to investigate the issue.

Sources stated that internal inquiry may be recommended after the initial investigations. Sources said that this report has no connection with Supreme Court of Pakistan's order in which the apex court had demanded detailed report from the FBR and Director General Customs Intelligence and Investigation. And it is an internal report which has recommended investigations against corrupt Appraiser Dost, they added.

It is important to mention here that the 53-

year-old corrupt Appraiser joined Customs Department in 1986 and was promoted to Appraiser in 2006. Dost has allegedly been involved in clearing consignments of coining oil, chemicals, scrap, pipe and papers through mis-declaration. He has also been named in violation of green channel and TP facility scams.

It is pertinent to mention here that Customs Today extensively covered the issue of misuse of green channel facility and involvement of corrupt principal appraiser Dost Muhammad, Incharge R&D, Appraisement East Collectorate.

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irectorate Intelligence and Investigation (I&I) of Custom has contacted Federal Investigation Agency (FIA) to initiate legal procedure to arrest the prime accused and the owner of M/s Digicom Traders in mega smuggling and tax evasion scandal, Customs Today has learnt through a high official of I&I. Meanwhile Directorate Intelligence and Investigation has lodged another FIR against M/s Digicom Traders (QMobile) in which once again the owner of the company Zeeshan Akhtar has been booked along with his other officials of his company. “This is the second FIR against the company in last four days,� said Deputy Director of Directorate Customs Intelligence and Investigation. He further said that they have registered a fresh FIR on Monday after the successful raid on a bungalow in which they recovered over 80,000 dumped QMobiles and two arrested officials of company has been produced in the custom court for obtaining further remand.

It also has been learnt that Custom Preventive has decided to ban the company for ever and initiated the process for cancellation of the working and import license of the company whereas the Directorate Intelligence and Investigation officials has sought all the record of the company’s import since the company started its business in Pakistan.

Additional Collector Cus-

toms Ali Zaman Gardezi, Directorate Intelligence and Investigation has told that after checking the whereabouts of prime accused Zeeshan Akhtar who filed GD from hisself ID into Green Channel for clearing four containers, they have came to know that he has fled away to Dubai.

It is pertinent to mention that on 5th of November on this month Customs Appraisement East had recovered Rs18.7 million from M/s Digicom Trading Pvt Ltd (Qmobile), which was short-paid through availing inadmissible concessions under 5th and 6th Schedule on the import of LED lights. Moreover, recovery notices for recovery of Rs33 million have also been served on M/s Digicom.

Meanwhile officials of Directorate Intelligence and Investigation has initiated a separate hunt to recover the smuggled stuff under the garb of LED Bulbs from various godowns of the said company which was brought into the country in four containers through Green Channel by misdeclaration in the documents and further cleared by the appraisement staff.

Directorate Intelligence and Investigation team in the supervision of Deputy Collector Directorate Intelligence and Investigation Sindh (I&I) Shah Faisal Sahu had recovered over 80,000 QMobiles from a bungalow situated in the posh area of DHA Phase 7 worth Rs1.2 billion on Saturday and arrested two key officials of the company who are being interrogated.

A couple of days earlier, Customs Preventive found a container of the consignment imported by M/s Digicom declared to be LED lights. On examination, the container was found to be stuffed with mobile phones and tablets. The said consignment had been cleared from Green Channel.

After this incident, Customs got high alert and all the consignments of M/s Digicom were put on hold. Customs Preventive along with MCC Appraisement East conducted joint examination of six containers imported by M/s Digicom declared to contain LED lights.

However, the goods were found to be as per declaration.

Assistant Collector Abeer Javed detected inadmissible concessions claimed by M/s Digicom under 5th and 6th Schedules. Abeer Javed found that the said concessions, which earlier were available on the import of LED lights had been withdrawn through a Customs General Order (CGO).

Therefore, a recovery of Rs18.7 million was made pertaining to the six containers that had been examined.

Meanwhile, Deputy Collector Mohammad Ali Malik has issued notices to M/s Digicom for recovery of Rs33 million which had been evaded in the same manner. An official said Green Channel facility actually to facilitate high-profile and reputed importers, but the facility was being grossly misused and the exchequer was suffering a huge loss.

The official said the risk management system (RSM) of

Pakistan Customs was inefficient and it had failed to detect revenue leakages. Several highprofile companies had indulged into mis-declaration and revenue evasion since Green Channel has now become the safest way to import and clear anything by declaring anything and there is no check and balance in this regard.

Sources said a number of consignments are in line to be cleared through the Green Channel and it is reported that the unscrupulous elements would be clearing high-value and high-tariff goods by mis-declaring the same as lowvalue and low-tariff goods through the green channel.

Sources said presence of black sheep in the department was the primary reason for the failure of the risk management system.

Custom Preventive Qamar Thallo has told Customs Today that Collector Preventive Dr Iftikhar has ordered the investigative officer of Inquiries and Prosecution Branch (I&P) to take the investigation to the officials of appraisement and automation department who cleared the containers and gave the authority to the company to use Green Channel facility.

He also stated that the Collector has adopted very serious approach towards M/s Digicom and decided to ban this company entirely.

On the other hand Deputy Collector Shah Faisal Sahu said that the hunt was on and more raids on the dumping points were expected where company have dumped the stuff.

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FIR against Q-Mobile officials for smuggling 78160 mobile phones thru green channel

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ustoms Today provided details regarding smuggling of banned items like betel nuts, dangerous chemicals, etc. from Karachi East Collectorate under the protection and facilitation of Dost Muhammad.

The Principal Appraiser of R&D department, Dost Muhammad has all the data available to him based on which he can stop this smuggling happening through green channel, yellow channel and TP from the port.

Sources said Customs intelligence department got activated on these reports and raided a godown at SITE area, Karachi. In this single raid they found more than 600,000kgs of betel nuts valuing more than Rs. 1.5 billion. If one single godown raid could get such huge quantity and high worth of banned goods then experts say that throughout Pakistan there would be hundreds of such godowns where such banned goods worth hundreds of billions can be traced out. The department writes that these goods

are ‘visibly of poor quality, infested and un\it for human consumption’. Hence, the damage to Pakistan is not only of hundreds of billions of rupees rather millions of people in the country are losing their health or life after consuming these hazardous substances.

Sources said FIR was lodged by Customs Intelligence and further Investigations were carried out in detail. 19 persons are held accused after the investigations. But it is a surprise that all these 19 persons are private persons and none of the customs departments’ own persons have been named!

How is it possible that a scam of such a huge nature takes place on regular basis at the Karachi East Collectorate where all the data is available with Dost Muhammad of R&D department, and still the Customs staff monitoring and clearing these goods at the ports are not named as accused in the mega scam? The management of the collectorate is not in the hands of private persons rather it is under the control of Customs staff where Dost Muhammad has all the data at R&D.

Sources said Customs intelligence department is also a department of Customs staff and R&D Dost Muhammad is also from Customs staff. One staff of customs is saving the other staff of Customs here.

Sources said during the investigations, many of the accused persons have actually mentioned on record, as available in the interim charge sheet, that they have cleared the goods from Karachi east collectorate.

They have mentioned many Goods Declaration (GD) numbers starting with alphabets ‘KAPE’. When the GD number starts with alphabets ‘KAPE’ then it means ‘Karachi Appraisement East’.

The accused have also provided GD copies to intelligence which states clearly the name as ‘KAPE’. This implies the hazardous betel nuts were cleared at Karachi east collectorate under the protection of Dost Muhammad as he had all the data available but did not stop these betel nuts which according to intelligence department are ‘visibly of poor quality, infested and unfit for human consumption’.

75 Following accused persons mentioned on record, as available in the interim charge sheet, that they have cleared the goods from Karachi east collectorate: Accused in attached interim challan, Abdul Ghani Ronjha S/O Muhammad Yaqoob is partner of M/S Kiran Food Products imported betelnuts from Karachi East Collectorate having GD Number: KAPE-HC-105324 Dated 13.12.2017 Also Ms/ Aruba Traders imported Betel Nuts from Karachi East Collectorate having GD Number: KAPE-HC-56809 Dated 25.09.2017 as presented by Abdul Ghani of Kiran Food Producers.

Accused in attached interim challan, Mushtaq Ali Tejani S/O Rehmatullah Tejani is proprietor of M/S Saarim Enterprises imported betelnuts from Karachi East Collectorate having GD Numbers: KAPE-HC24193 Dated 02.08.2017, KAPE-HC-46533 Dated 09.09.2017

Accused in attached interim challan, Muhammad Zubair S/O Zamir-Ud-Din Tejani is proprietor of M/S Zubair Corporation imported betelnuts from Karachi East Collectorate having GD Numbers: KAPE-HC-46011 Dated 08.09.2017, KAPE-HC-46533 Dated 09.09.2017 Accused in attached interim challan, Shahzad Tejani S/O Feroz Ali Tejani proprietor of M/S Feroze Products imported betelnuts from Karachi East Collectorate having GD Number: KAPE-HC34312 Dated 24.08.2017 Accused in attached interim challan, Ghulam Mehdi Nayani S/O Barkat Ali proprietor of M/S Al-Abbas Industried imported betelnuts from Karachi East Collectorate having GD Number.: KAPE-HC92760 Dated 23.11.2017 Accused in attached interim challan, Muhammad Ali S/O Muhammad Jamil

proprietor of M/S Aruba Trading imported betelnuts from Karachi East Collectorate having GD Number: KAPE-HC-56809 Dated 25.09.2017 Accused in attached interim challan, Farheen Irfan W/O Muhammad Irfan proprietor of M/S Rohain Corporation imported betelnuts from Karachi East Collectorate having GD Number: KAPE-HC98842 Dated 05.12.2017 Sources said Customs staff is not ready to legally proceed against Dost Muhammad as he is their colleague though involvement of Dost is obviously proved through documents and statements of so many persons in the case.

The only option here is that NAB takes up the case and investigates the role of Dost and other customs staff in this smuggling of betel nuts. Only an independent investigation of NAB can solve the matter for our beloved country and protect us from such huge loss of lives and revenue.

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n the directions of Chief Collector South Abdul Rasheed Shaikh, the Customs Port Qasim has sought information about the importers and relevant details to broaden the investigations into the shipping company M/s MSC in acetic anhydride smuggling scam, Customs Today has learnt.

According to the details, the Customs Investigation Unit (CIU) of Port Qasim Collectorate has taken this initiative after obtaining prior approval from Chief Collector Appraisement South and Collector Port Qasim Chaudhary Javed because it has surfaced in the investigation that the approximately 24 tonnes of acetic anhydride was tried to be smuggled by using the name of a fake importer company M/s Pak Traders from Peshawar.

When customs of\icials tried to locate the of\ice and management of M/s Pak Traders they found nothing on the ground which proved that the company was fake and existed just on papers. “We have found nothing about the importer even we have checked the record from recent past but no imports were found related to M/s Pak Traders that’s why now we have only one option to carry the inves-

tigations forward against the shipping company that transported the acetic anhydride’s consignment from Poland to Karachi port,” an of\icials told Customs Today on the condition of anonymity.

It is pertinent to mention that the of\icials of the Pakistan Customs had foiled a smuggling bid of a huge quantity of dual use precursor acetic anhydride worth around $1.5 million.

The Acetic Anhydride, a main ingredient for preparing narcotics substance as well as making highly dangerous explosives by the terrorist out\its was shipped from Poland for a Peshawar-based importer. On 2nd February, the Customs Collectorate Port Mohammad Bin Qasim, Karachi claimed to have seized a huge quantity of 15,520 liters equivalent to 16.7 metric tons of pure grade highly sensitive dual use precursor acetic anhydride, a major component of improvised explosive devices (IEDs) and also used in illicit manufacturing of heroin. After this scam was surfaced, the of\icials of Pakistan Customs Port Qasim approached the of\icials of Poland to seek assistance to trace out the actual culprits involved in the smuggling of dualpurpose chemical acetic anhydride which is used to make heroine, explosives and bombs.

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ustoms Appraisement East R&D Section Principal Appraiser Dost Muhammad has crossed every limit to hamper ef\iciency of customs department by his widespread corruption through clearance of contraband goods and Federation of Chamber of Commerce and Industry will take up this mega corruption issue with the higher authorities of customs department.

These views were expressed by President Federation of Pakistan Chamber of Commerce and Industry Ghazanfer Bilour while talking with Customs Today.

Bilour said that in developing countries like Pakistan these fraud scams are proved to be major disincentive and obstacle to trade expansion.

Ghazanfer Billour further said that the scams of corrupt customs of\icer and his team are leading towards disastrous consequences in terms of harming national

security and public \inance. The President FPCCI added that economic welfare will come through awareness about crippling effects of corruption in government institutions because corruption in clearance of contraband goods cause bad effects on economic development. Corruption increases inequality and distorts the sale, and redistribution role also wastes national \inancial resources.

The corruption carried out by Customs Appraisement East Principal Appraiser Dost Mohammad needs to be plunged by fair investigations in order to sustain the effectiveness of public sector agencies.

The President FPCCI said that interests of importers must not be harmed and efforts must be made to properly investigate the matter of Dost Mohammad.

Meanwhile, Former Vice President FPCCI Syeda Masooma Subtain has said that corruption of notorious Incharge R&D Dost Muhammad at bonded warehouse is causing serious security risks and damaging integrity of customs department.

In an exclusive interview with Customs Today, she told that most recent corruption at bonded warehouse is again an eye opener for the customs highups to take strict action against dishonest Dost Muhammad who is running parallel smuggling network in the country.

Masooma told that corruption is deep rooted in the customs department and it is also one major reason that huge scams are appearing with every passing day which shows inability of department and FBR which failed to

take any action against corrupt of\icials like Dost Muhammad.

She said that serious irregularities found at the bonded warehouse for the clearance of import shipments with connivance of Dost Muhammad and his team raised serious questions on the integrity of customs department. Corrupt of\icials like Dost Muhammad are operating their illegal services for the sake of kickbacks openly.

Corruption became a boon for the customs of\icials like Dost Muhammad and his network nowadays as they are facilitating smugglers for the clearance of their contraband items for the sake of their \inancial bene\its through kickbacks.

She said that govt must interrogate serious irregularities and corruption of Dost Muhammad and his network which is a major problem for genuine importers. She suggested that Dost Muhammad and other corrupt of\icials who if found guilty in the bonded warehouse scam should be punished severely and an exemplary sentence should be given to said of\icials for eradication of corruption.

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Customs Department in its report titled “Ascertain the market demand of goods prone to smuggling – Establishing the volume of smuggling” published in May 14, 2015 by Customs Preventive Karachi established that Rs 1000 billion smuggling is carried out by smugglers and these goods are thrown in large and small markets across the country.

Chief Justice communicated displeasure to former FBR chief Tariq Mahmood Pasha on open sale of smuggled goods in main markets of major cities. Most of the smuggled goods in the markets are cleared though green channel at Karachi ports with connivance of Customs staff. Chief Justice Mian Saqib Nisar has taken notice of the green channel illegal clearances and the court associate sent a copy to the NAB Chairman for necessary action.

As per above-mentioned report, 13 commodities were taken for research and after thorough research, it was noted that out of those 13, 11 had a significant part of the market share, which was catered through smuggling.

The findings give the quantum of smuggling taking place in the country for each of the commodities investigated. In addition, the tariff lost by the FBR was also calculated and compared to the taxes collected. Next, the value of the smuggled goods was compared to the GDP. Both of these comparisons showed that smuggling through green channel plays a significant role in loss of revenue to the national exchequer annually.

Pakistan’s GDP is $283.7 billion (World Bank, 2016). The smuggling to GDP ratio for just 11 commodities investigated in this study accounts for 3.88% of the country’s total GDP, and is 9.46% of the total tax collected by FBR. Therefore, the challenge posed by smuggling to the growth in GDP and collection of revenue is staggering. On 11 products smuggling, estimated revenue lost is $2,638,808,398.97 and if we consider smuggling of 100s of other products including banned betel nuts and dangerous chemicals through green channel, the loss of revenue would certainly become equal to 10% of the GDP and touch the mark of Rs 1000 billion.

Green channel scam started in 2011-2012. Hence, if we consider 6 years of green channel clearances then it will be around 30 million containers. Even if we take the figure on the lower side then too it will not be less than 10 million containers in green channel cleared without scanning and examination. So much of liquor, mobiles, electronic items, cigarettes, betel nuts, chemicals, etc. have been poured into the country through green channel. Pakistan has lost Rs. 1,000 billion and also millions of lives and properties due to this scam.

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FOLLOWING ARE COMMODITIES FINALIZED TO GAUGE REVENUE LOSS DUE TO SMUGGLING

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TOTAL REVENUE LOSS ON 11 PRODUCTS’SMUGGLING STANDS AT RS 321235340448.61

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TOTAL LOSS IN TYRES STANDS AT USD 118472743.23 = APPROX. RS 14422279397.10

TOTAL LOSS IN TVS STANDS AT USD 9068006.99 = APPROX. RS 1103893830.93

TOTAL LOSS IN TEA STANDS AT USD 77503436.16 = APPROX. RS 9434880800.94

TOTAL LOSS IN CIGARETTES STANDS AT USD 26870426.62 = APPROX. RS 3271071384.59

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TOTAL LOSS IN MOBILE PHONES STANDS AT USD 1056670334.52 = APPROX. RS 128633763172

TOTAL LOSS IN PLASTIC GRANULES STANDS AT USD 222187 = APPROX. RS 27047934.45

TOTAL LOSS IN STEEL SHEETS STANDS AT USD 112571436.80 = APPROX. RS 13703883858.85

TOTAL LOSS IN POL (HSD) STANDS AT USD 874049097.60 = APPROX. RS 106402366896.34

TOTAL LOSS IN VEHICLES STANDS AT USD 174808147.79 = APPROX. RS 106402366896.34

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upreme Court of Pakistan should provide fool proof security to witnesses to ensure safety and seize all relevant records pertaining to misuse of green channel for fair trial. It was demanded by former General Secretary of Multan Tax Bar Association Muhammad Imran Ghazi. He expressed that business community of whole country including South Punjab is suffering from widespread corruption of some customs staff. He said that law enforcement agencies in Pakistan failed to take any action against corrupt elements who are involved in an organized crime which encourages dishonest people in the country.

He said that if government provides security to witnesses who are willing to give assistance to Supreme Court of Pakistan in probing misuse of Green Channel facility then this effort will be highly appreciated. Being a lawyer he felt that there were few cases in which accused had been awarded imprisonment or any penalty due to weak prosecution system and poor investigations of customs department. He appreciated Chief Justice of Pakistan Justice Saqib Nisar for taking notice against billions of corruption through illegal clearances of shipments from green channel facility. After shocking revelation of misuse of Green Channel facility, genuine importers are facing severe issues in the clearance of their legitimate import shipments due to gluttonous staff of customs. Now customs department has adopted measures for genuine importers to satisfy their high ups and they are trying to satisfy their high ups. It is very difficult for honest and genuine importers to clear their shipments due to strict checking and examination procedure adopted with genuine importers and it is causing unnecessary delay in the clearance of their shipments. Business community wondered that action against corrupt officials of Customs is originating delay in clearance of their shipments and they are delivering message to importers that they should stay away from investigation in mega corruption cases, he added. If customs department had taken any serious action against corruption of Principal Appraiser Dost Muhammad and his allies, then Supreme Court could not have interfered in this matter. It is almost impossible to take action against corrupt customs officials in this intense atmosphere created by corrupt elements in the society and Supreme Court should take special measures in this regard for fair trial where witnesses should present themselves for submitting records. Pakistan is already facing law and order situation and witnesses will be soft target for corrupt mafia and it is also responsibility of our law enforcement agencies to protect them.

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corrupt Principal Appraiser Dost Mohammad has put reputation of Customs Department at stake, while violation of Green Channel and TP facility and illegal clearance of contraband items by the Customs officials like “Gang of Dost” is not only flux to national revenue but also a security risk. These views were expressed by Naima Ansari, former Vice President of Federation of Pakistan Chamber of Commerce and Industries (FPCCI) and Islamabad Women Chamber of Commerce and Industries (IWCCI) while exclusively talking with Customs Today. Naima Ansari expressed her serious concerns over the deep silence of Federal Board of Revenue (FBR) and high-ups of Customs Department even receiving continuously complaints against the corrupt official Dost Mohammad. “ The FBR and Customs Department should set up a committee for thorough investigation and inquiry; however, a strong and strict action is the need of time against such corrupt officials as we always have to take hard decision to discourage corruption,” she demanded. Appraiser Dost has a strong lobby, due to which, still the FBR and Customs high-up could not even take any action against such a big scam of corruption of Dost & company, she added. She added: “We are facing revenue shortage; national revenue is badly damaged by corruption, violation of rules & regulations, bribery, indeed corruption and nepotism obstruct to achieve national and internationally set goals of economy and development.

Naima Ansari told Customs Today: “I also noticed that some of Customs officials exploited businesswomen who are new in business even the Customs Department should encourage and facilitate women in business, but there are always some bad bugs in every department which destroy the good image of the department.” Naima Ansari expressed worries for violation of Green Channel and TP facility that’s why country is facing huge challenge of revenue leakages because of culture of smuggling and corruption. Bribery and corruption is discouraging legal import, small & medium businesses, effecting business and trade while also indirectly affecting the end consumers, Naima added. She also demanded the government to establish a business oriented and trade friendly policy to discourage smuggling and illegal import. Green Channel and TP facility violation are raising concerns in the business community; their investment is at risk and also smuggling badly effect legal import, Naima stated. Naima Ansari said: “We always appreciate trade oriented, anti-smuggling, anti-corruption polices by the government; however, implementation of such polices are also be a priority.”

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usiness community lauded appointment of Rukhsana Yasmin as new Chairman Federal Board of Revenue (FBR) and hoped that she will take special measures against corruption and misuse of Green Channel facility for betterment of country.

MCCI President Khawaja Jalaluddin Roomi expressed that this is honor of our country that first time in its history, a woman has been appointed as chairman Federal Board of Revenue, adding that she would help in resolving economic issues and challenges faced by country. He said she has joined as chairman Federal Board of Revenue when economic situation of country is in critical situation and business community is also worried due to negative environment created for business and embezzlement at ports which disturbed the business of genuine importers due to corrupt mafia operating at ports. He hoped the government will impose uniform tax system on business community for their suitable business environment and discretionary powers of Federal Board of Revenue staff will be withdrawn in order to avoid its misuse. He said newly appointed chairman will bring reforms in the tax system and form national tax system as business friendly that all pay their liable taxes without any hurdle and it is an opportunity for financial reforms in the country. She will figure out solution for the economic issues and make comprehensive strategy for rescuing economy. He said that economic conditions are not appropriate due to anti-business policies of the Federal Board of Revenue and we hope she will manage to devise better policies which sort out actual issues of business community for sustainable development in the financial system. He hoped that billions of refunds are stuck in the Federal Board of Revenue so she should make better mechanism for issuance and expedition of refund cases.

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he new Federal of Revenue Chairman Rukhsana Yasmeen needs to eliminate the risk of corruption in Green Channel facility through reform policies.

This was stated by Kakakheil advocate while talking with Customs Today.

Mehwish Kakakheil added that Green Channel abusers

must be taught ironic lesson for causing loss of millions to the exchequer.

Green Channel facility was miserably misused by some fraudsters and customs of\icers due to which importers all over Pakistan demanded chief justice of Pakistan to take notice of Green Channel violations to curb corruption of billions.

When inquired from advocate Mehwish Kakakheil

about the mega scam of corruption and role of new FBR chief, she said that the new FBR chief must take the matter seriously and evolve tools for curbing the corrupt practices in customs department. Advocate Kakakhel added that importers were worried about the fraud carried out openly

by Principal Appraiser Dost Muhammad of Appraisement East Karachi.

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slamabad Chamber of Commerce and Industry (ICCI) President Shiekh Amir Waheed has said that Principal Appraiser Dost Muhammad and Co. are the real enemies of the country because they are inflicting huge revenue losses to the national exchequer.

While talking to Customs Today exclusively, ICCI President Amir said that country markets including Rawalpindi markets are filled with contraband goods, which reflects that these items/goods are cleared through ports by getting bribe. It is a big question that how these illegal goods/items reached the markets? The Federal Board of Revenue (FBR) and Customs Department should take action against such criminal elements as clearance of such contrabands goods is a serious crime, otherwise the country will face truncated revenue collection.

The ICCI president further said everyone knows that Principle Appraiser Dost cannot take such step alone as it is a team work; however, the higher authorities have to monitor the system and if a staff member found involved in such illegal activity, he must face exemplary punishment. “If they (FBR and Cus-

toms Dept) are not taking action it shows that they are part of such crime,” he added.

Amir said that FBR established One Link system to avoid such frauds which is appreciated by importers; however, systematic approach in the form of green channel, yellow channel and TP smuggling is used by Principle Appraiser Dost Mohammad to blackmail importers and get bribe on the name of “speed money”.

“This discourages small scale importers while on the other hand also makes importers life miserable,” he added.

ICCI President Amir further said, “Our country faces leakage in the revenue collection, but black sheep in the customs department are collecting parallel revenue through bribe and clearance of contraband goods, and unfortunately this parallel revenue is higher than the revenue collected by the department.” Amir also suggested that the government should reduce the tax rate to avoid smuggling of goods and leakage of revenue. He added that lowering the taxes will increase revenue collection and help discourage smuggling activities. ICCI President Amir demanded of the FBR and Customs Department to take serious action against such black sheep in the department.

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he customs of\icials involved in corruption must be dealt with iron hands as the Supreme Court took action against corrupt practices in customs department.

Principal Appraiser of Appraisement East Dost Mohammad and his gang are fearing the investigations because it will expose the evil face of of\icers causing loss of billions to the exchequer.

The corruption in customs department was highlighted by Customs Today after which media highlighted the misuse of green channel facility which has caused serious loss to the national kitty. Advocate Jaffer Qazi expressed these views while talking with Customs Today at Peshawar.

The advocate added that upon direction of Supreme Court of Pakistan, National Accountability Bureau (NAB) has initiated investigation against the corrupt practices in customs department and FBR of\icial has also admitted misuse of green channel, causing loss of billions to the customs exchequer. According to revelations the FBR admitted that ten million containers have been released without scanning and examination which has cursed the customs department and caused defamation.

Advocate further said that now the NAB concluded that the corruption in customs department has been increased in last few years due to which a huge number of containers have been cleared illegally which also included contraband goods. Advocate Jaffer Qazi added that now the corruption has been admitted by NAB investigations after which it has become mandatory for customs department to take action

against the corrupt practices and arrest of\icials like corrupt Principal Appraiser Dost.

Earlier he said that a mega scam was unearthed by Customs Today at Customs Dry Port Peshawar in which the Deputy Collector Naveed Ather was held accountable but no action was taken against him due to which the three customs appraisers who were arrested in same case got released due to which the culprits were not dealt with iron hands which increased the risk of corruption at Peshawar Dry Port.

Advocate Qazi further said that when corruption found in the customs department is not handled with harsh reaction, the risk of corruption could not be eliminated.

He added that it is the high time to bring corruption to zero level because the higher institutions have taken notice of the corruption in the department.

The advocate Qazi when asked about the customs laws and the nature of tax rules regarding the declaration of consignments, he informed that customs laws have been very artistic when it comes to import and export clearance data. The Customs laws are very much hard and require high level fraud to misguide the customs department and deprive the national exchequer of genuine taxes. The FBR chairman should take strict action against green channel fraudsters for posing loss of billions to the national exchequer.

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rincipal Appraiser Dost Muhammad is illegally operating smuggling networks for clearance of contraband items upon which the criminal silence of Customs high-ups is causing huge loss to national exchequer.

The Principle Appraiser allows clearance of contraband goods like Indian gutka, banned medicines and betel nuts which not only causes loss to the customs revenue collection but also earns bad name for the Customs Department.

The Members of Peshawar Tax Bar expressed certain objections over large-scale corruption of Principal Appraiser Dost Muhammad, who is currently performing his duties at Customs Appeasement East, R&D section, Karachi. Advocate Isaac Ali Qazi, member of Isaac Law Associates here in Peshawar, informed Customs Today in an interview on Thursday that due to corrupt customs of\icials like Principle Appraiser Dost Mohammad, importers and exporters registered a lot of cases against Customs Department in which they were frustrated on clearance of legally imported goods to Pakistan.

Advocate Issac Ali Qazi further said that the clearance of contraband goods is a serious crime upon which the appraiser needs to be punished but these of\icials become blue-eyed persons of smugglers and criminals who not only tease hardworking of\icials but also frustrate genuine importers. In Peshawar region, containers are seized at Kohat often despite the green chit of clearance given from the Karachi port for taking bribe. The Advocate added that the Customs high-ups need to take strict action against the corrupt of\i-

cial Dost Mohammad in order to discourage those supporting him, causing huge loss to the exchequer. The Advocate further told Customs Today that so far a number of importers based in Peshawar have sidelined themselves from the business of trade and transit but the Customs high-ups are not worried about the corruption made by lower staff in different regions of Pakistan.

He said there needs to be a proper check and balance system which can identify the data to be used for tracing of moving consignments between borders which can increase tax collection.

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resident of KCCI, Mufassir Atta Malik, has said that a few corrupt customs of\icials are defaming not only the department but also the country. Higher FBR of\icials should eradicate corruption with iron hands and make the country corruption-free as it is vital for a strong economy and prosperity of the country.

Talking to Customs Today, Malik said it is true that majority of importers are facing dif\iculties in clearance of their consignments due to unnecessary hurdles created by Principle appraiser Appraisement East Collectorate Dost Muhammad and his team.

He said, “We know a number of his activities are illegal. We will call a meeting of all importers and we are going to take decision about this issue.”

Answering to a question, he said: “We are going to make a complaint to customs higher authorities about this corrupt appraiser.”

He further said due to such corrupt of\icials a question has been marked on the reputation of customs department.

He said unnecessary delays of consignment are being made by corrupt appraisers which cause huge loss to traders. Importers have been demanding for the last several days to take strong action against Dost Mohammad. An inquiry committee should be set up on this issue who would look into this matter, he added. It is pertinent to mention here that principal appraiser was allegedly extending full support to smugglers to clear their goods through green channel. Being head of R&D Appraisement East Department, he had full authority to access all data related to import of containers. Customs Today has been reporting on abuse of green channel since past many years. An appeal regarding Rs 1000 billion green channel scam was repeatedly published in the newspaper by senior journalist Asad Kharal and then the complaint was lodged before the Chief Justice. After this complaint, the CJP took notice of the issue and ordered the quarters concerned to submit reply within 10 days.

Meanwhile, CEO of M/s Muneeb Bella Garments who is also of\ice-bearer of Karachi Chamber and Commerce & Industry said that it is not a new issue, Appraisement East Principal Appraiser Dost Muhammad often creates unnecessa`ry hurdles for importers using different methods.

It is worthy to mention here that Customs Today reported extensively on misuse of green channel facility at Karachi ports where mega brands like Mobilink and QMobile were reported to be grossly abusing green channel facility with connivance of Customs staff.

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Centre for Investigative Journalism (CIJ) Pakistan succeeded to prove its reports regarding large-scale green channel smuggling as Chief Justice of Pakistan Mr Justice Mian Saqib Nisar took notice of this mega scam and copy of the Orders sent to the Honourable Chairman NAB Mr. Justice (R) Javed Iqbal for necessary action. After CJP’s notice, DG Customs Intelligence, in his report submitted to the then FBR chairman Tariq Pasha, admitted that green channel facility has been ‘mercilessly abused’ by some syndicates in connivance with a few corrupt customs officers. Another FBR official admitted that almost 10 million containers have been cleared through green channel which shows the exact scale of this scam. It is actually a scam equal to 1000 Avenfields.

Customs Today (CT) has been reporting on abuse of green channel since past many years.

An appeal regarding Rs 1000 billion green channel scam was repeatedly published in the newspaper by senior journalist Asad Kharal and then the complaint was lodged before the Chief Justice in Supreme Court’s Lahore registry.

After this complaint, the CJP took notice of the issue and ordered the quarters concerned to submit reply within 10 days. Earlier, CT reported extensively on misuse of green channel facility at Karachi ports where mega brands like Mobilink and QMobile were reported to be grossly abusing green channel facility with connivance of Customs staff.

Smuggling of dual use precursor acetic anhydride, dangerous chemicals, liquor, betel nuts and electronics items was exposed and reported through Karachi ports. These reports led to multiple raids, tens of FIRs and recoveries of illegally cleared goods worth billions of rupees. Notwithstanding, these actions were only a token in nature and a drop in ocean whereas much more needs to be unearthed. CT also published reports about changing of strategies by green channel smugglers as they started clearing illegal goods through yellow channel, TP, switch B/L and bonded warehouses. Now, Rukhsana Yasmin has taken charge of FBR chairperson and she has good repute and past corruption-free record. It is hoped she will take a prompt action against abusers of green channel to save billions of rupees losses to the exchequer and precious lives of millions of Pakistanis. In fact, purpose of writing this book is to expose Rs 1000 billion mega scam of customs green channel and appeal the Honourable Chief Justice of Pakistan and Honourable Chairman NAB to take strict action against the culprits to save billions of rupees of the nation.