KARACHI – An investigation by Pakistan Customs uncovered a sprawling alleged import and tax-evasion network involving 71,815 internet routers, imports worth around Rs3.2 billion, and suspected under-invoicing of nearly Rs1.3 billion.
The investigation, conducted by Collector Customs Airport, Karachi, and submitted to the Secretary Enforcement, Federal Board of Revenue (FBR), raises serious questions about the operations of two companies Muslim Son’s Enterprise and Moosani/Musani Syndicate.
According to the report, the case extends far beyond the alleged illegal importation of routers. Investigators flagged suspected under-invoicing, tax irregularities, questionable business addresses, common digital footprints, possible beneficial-ownership links and potential trade-based money laundering.
Over 70,000 Routers Imported without PTA Approval
According to the investigation, 71,815 internet routers were imported through 10 Goods Declarations (GDs) via the Pakistan Customs Air Freight Unit/Airport Facilitation Unit in Karachi. The consignments lacked the mandatory PTA Type Approval and Clearance Certificate, in violation of SRO 1172(I)/2021 and the Import Policy Order.
The consignments were seized and, following adjudication proceedings, an order for confiscation was issued, according to the report. The companies subsequently approached the Federal Tax Ombudsman, but their complaints were dismissed.
The financial trail highlighted in the investigation has raised even bigger questions. The routers were reportedly declared at a total value of approximately Rs97 million. Customs, however, revised the value upward to approximately Rs565 million. The investigation puts the alleged overall under-invoicing at approximately Rs1.3 billion.
Including duties and taxes, total imports were valued at approximately Rs3.2 billion, with the report specifically citing a figure of around Rs3.269 billion.
According to the report, the owners initially had capital of only Rs2.2 million. That capital later increased to a combined maximum of approximately Rs77.7 million, yet investigators found that the amount was still insufficient to cover even one month’s imports.
Investigators also examined the physical addresses associated with the companies. According to the report, one registered address turned out to be a rice and flour shop, while another was a rented residential property.
No functioning corporate office was reportedly found at either location. The investigation alleges that the companies were registered in the names of front men and were allegedly being used as “market IDs.”
One of the companies was also registered with the FBR as a “Service Provider / General Order Supplier” rather than as an importer, according to the report.
Investigators examined this issue in the context of alleged fiscal fraud under Section 32A(1)(b) of the Customs Act, 1969, which the report links to potential predicate-offence concerns under the Anti-Money Laundering Act, 2010.
According to the report, WeBOC activity associated with one company involved 2,983 unique IP addresses, while the second involved 2,732. Together, that amounts to approximately 5,715 unique IP addresses. But investigators found that 1,048 IP addresses were common to both companies.
Pakistani Man faces up to 20 Years in Prison for selling 5Million Fake Postal Labels
The investigation found further similarities in the companies’ trading networks. According to the report, both companies shared 108 local buyers and 12 foreign suppliers.
One supplier, A.K. Sons Trading Company, allegedly accounted for approximately 61% of the imports. Investigators also flagged several local buyers who were reportedly blacklisted, suspended, inactive or operating in sectors seemingly unrelated to router trading.
The investigation also alleges that the case triggered pressure on Customs officials. According to the report, after officials refused to release the consignments and began examining the companies’ beneficial ownership, individuals allegedly operating behind the entities attempted to influence officials.
Customs investigation recommended that the matter be taken beyond departmental proceedings, and looking to form Joint Investigation Team comprising NAB, FIA, Inland Revenue and Customs Intelligence.
The investigation is still ongoing, and the recommended JIT has yet to be approved.
UBL Customers lose over Rs10 Crore in Shocking Data Leak, Duplicate SIM Fraud
News Desk
About the Author
