Karachi: A massive customs fraud has come to the fore at Karachi Port, wherein importers used to clear imported goods by producing fake court orders in large numbers in order to avoid paying any customs duty and taxes. Following directions of Collector Mona Mahfooz, the Collectorate of Customs, Appraisement-West, conducted an investigation which was carried out by Deputy Collector Bakht-e-Bariyar and Appraisement Officer Zia-ur-Rehman, after receiving an initial alert from Assessment Officer Junaid Hashmat.
It has been reported that M/s Fabrotex Industry, located in Jamrud District, Khyber, imported 31 consignments of fabric from China. The firm had incorrectly claimed a reduced sales tax rate of 10% rather than the statutory rate of 18% under the Sales Tax Act, 1990.
For the substantiation of fake tax claim, Fabrotex Industry fabricated a writ petition, number 5452/2025, originating from a different company, M/s Prism Industry. To make it their own, they replaced Prism’s name with theirs and submitted digital and printed copies of the fake petition to customs officials at Karachi Port.
The original petition was filed by M/s Al Fajar Foods and others, which had received temporary relief in August-September 2025 from the Peshawar High Court to allow such companies to clear their goods at Karachi Port. Fabrotex Industry misused the said court order for the clearance of its consignments and evaded duties and taxes.
Investigations revealed that Fabrotex cleared goods worth Rs. 698.6 million and short-paid Rs. 61.8 million as Sales Tax. The consignments mainly comprised polyester and velvet fabrics. A detailed scrutiny was made under Section 80 of the Customs Act, 1969.
Accordingly, an FIR (No. 13/2025) has been lodged against the accused under the Customs Act, 1969, Sales Tax Act, 1990, and Income Tax Ordinance, 2001, for mis-declaration, forgery of documents, and evasion of taxes.
The police are now trying to arrest the owners and directors of Fabrotex Industry and others who played a part in the fabrication of the legal documents.
