In a proactive move, the Customs Intelligence and Investigation (I&I) in Karachi has issued directives to all terminal operators to halt consignments of yarn arriving from the UAE. Acting on a tip-off, the I&I Karachi discovered an illicit practice where certain importers were allegedly involved in importing yarn from India, specifically from Kola, and subsequently re-exporting it to the UAE. The twist comes as the yarn is declared as originating from Thailand upon reaching the UAE.
The modus operandi involves importers obtaining a letter from the Dubai Chamber of Commerce, falsely certifying that the yarn has been sourced from Thailand. It’s important to note that no country can verify the origin of goods that originated in a third country; they can only confirm the origin of their own products.
Furthermore, these importers were claiming benefits under the South Asian Free Trade Area (SAFTA) agreement, adding a layer of complexity to the scheme.
In response to these findings, the I&I Karachi has instructed all terminal operators to hold consignments of yarn arriving from Jebel Ali and the UAE. They are tasked with verifying the yarn’s origin, the bill of lading (BL) from Thailand, and the Import General Manifest (IGM) number from Thailand.
Under the leadership of Director General Faiz Ahmed, this investigation was spearheaded by Director Engineer Habib Ahmed, Additional Director Inamullah Wazir, Deputy Director Saifullah, and Principal Appraiser Muhammad Qadeer. Their efforts successfully uncovered and addressed this deceptive practice.
In addition to the yarn scheme, the I&I Karachi has observed a notable rise in transshipment permits (TP) to Lahore. Goods assessed in Lahore are claimed to be 50% lower in value than those in Karachi due to stringent rule enforcement in the latter. Furthermore, the Islamabad dry port has been identified as clearing auto parts disguised as scrap. The I&I Karachi is actively taking steps to eliminate these malpractices and protect the national exchequer. Stay tuned for further updates on our efforts to maintain integrity in trade practices.
