Presentation for Member Customs

on
Collectorate of Customs-Exports (PMBQ), Karachi.
Presented by
Muhammad Amir Thahim
Collector
1
 Overview

• Exports Collectorate at PMBQ established on 01 st of

July 2013 vide SRO 581(I)/2013 dated 18th June, 2013

• Territorial Jurisdiction:
– Civil districts of Karachi East, Korangi & Malir

• It caters almost 51% of total Exports of Pakistan

2
 Overview: Core functions
All matters relating to cargo clearance for Exports from:
•PMBQ (Bulk Exports Cargo)
•QICT (Containerized exports Cargo)
•IC3
•ODT(QFS, Fast Track, Pak Shaheen, MTO, DPW and Supreme
Terminal)
•KEPZ-Import, Export, Manufacturing, Trading and Temporary imports
•Manufacturing Bonds
•EOUs
•DTRE
•AEOs
•EFS
3
•Duty Draw-back
 Status of Human Resource
Sanctioned Working
S. No. Name of Post BPS Shortage
Strength Strength
1 Collector 20 1 1 0
2 Additional Collector 19 2 1 1
3 Deputy / Assistant Collector 18/17 6 5 1
4 Principal Appraiser 17 5 4 1
5 Appraisers / Examiners 16 44 13 31
6 Office Superintendent 16 1 0 1
7 Deputy/Assistant Chemical Examiner 16 3 2 1
8 Stenographer 15 0 0 0
9 Steno typist 12 0 0 0
10 Upper Division Clerk 11 7 5 2
11 Lower Division Clerk 9 10 6 4
12 Sepoy 5 44 27 17
13 Record Supplier 3 10 0 10
14 Lab Attendant 3 5 1 4
4
 PROJECTS
• Construction of 2nd Floor at existing building of National Block
at IC-3
• Rehabilitation of RCC flooring, plinth platform, replacing of
roof of examination hall & electrification / fire fighting system
at IC-3
• 5 acres land extended to IC3, plan to send PC-1
• Transit Accommodation PC-I prepared.
• Acquisition of 20 acres land for dedicated bonded area/
Customs Warehouse.

5
 Value of Exports
(July-June)
(US$ in Million)
2020-21 2021-22 % Difference July 2021 July 2022 % Difference

11,510 14,571 26.59 % 1,159 1,155 -0.34%

TEUs & Vessels handled (Export PMBQ)
(July to June)
MCC 2020-21 2021-22 % Change

TEUs 252,651 263,886 4.44%

* 50 Vessels per per month

7
 Details Of DTRE Approvals Granted
For The Period (July To June)
Rs. In Million
S# F.Y No. of DTRE Approvals granted Remission Amount involved

1 2020-21 64 2,443

2 2021-22 69 4,515

•Major units of DTRE Approval

1. National Tent House
2. Supertouch Pvt Ltd
3. Omer Minerals
4. F. X. Technology
5. Herbion Pakistan Pvt Ltd
6. Farooq Enterprises
 Total No. of Manufacturing Bonds under
SRO 450(I)/2001
(July-June)
Mfg. Bonds under
Total No of Mfg. Mfg. Bonds Mfg. Bonds non- New Mfg. Bonds
S# court case / UNDER
Bonds Operational operational application
CANCELATION

1 53 35 16 02 NIL

•Major units of Manufacturing Bond

1. Gul Ahmed Textile
2. Novatex Ltd
3. Al-Karam Textile Mills
Limited
4. Denim Clothing Pvt Ltd
5. International Steel Limited 9
Total No. of EXPORT ORIENTED UNITS under
SRO 327(I)/2008
(July-June)
EOU non-operational
Total No of EOU Under NEW EOU
S# EOU Operational / UNDER
EOU. Cancellation application
CANCELATION

1 27 23 02 01 NIL

•Major units of Export Oriented Units:

1. Younus Textile Pvt Ltd
2. Artistic Milliner Pvt Ltd
3. Soorty Enterprises Limited
4. Artistic Fabric & Garments
5. Al-Karam Towel Industries (Pvt)
Ltd. 10
 Total No. of EXPORT FACILITATION
SCHEME Units Under SRO 957(I)/2021

EFS Operational Under process NEW EFS

Total No of EFS Units
Units applications application

19 10 09 03

•Major units of Exports Facilitation Scheme

1. Al-Karam Textile Mills
2. Naveena Exports Ltd
3. Indigo Textile Pvt Ltd
4. Al Razzaq Fibres
5. Allied Engineering
6. Laiq Rehman Textile Mills Pvt 11
 Top 10 Exporters 2021-22
VALUE IN USD VALUE IN PKR
S# EXPORTERS
MILLION MILLION

1 M/S STYLE TEXTILE (PVT) LTD. 593 106,002

2 INTERLOOP LIMITED 369 66,024
3 YUNUS TEXTILE MILLS LIMITED 334 59,250
4 M/S ARTISTIC MILLINERS (PVT) LTD 289 51,518
5 GUL AHMED TEXTILE MILLS LIMITED 276 49,315

6 SOORTY ENTERPRISES (PRIVATE) LIMITED 241 42,958

7 U.S. APPAREL & TEXTILES (PVT) LTD 228 40,713

8 LIBERTY MILLS LIMITED 204 36,161
9 FEROZE1888 MILLS LIMITED 201 35,486
10 NISHAT MILLS LIMITED 193 34,486 12
TOP 10 EXPORTS DESTINATIONS 2021-22
S# DESTINATIONS USD in Million PKR in Million
1 United States 5,438 965,518
2 United Kingdom 1,592 281,606
3 Netherlands 1,151 205,457
4 Germany 778 138,748
5 Spain 733 130,643
6 Belgium 631 112,428
7 France 285 50,809
8 Poland 271 48,481
9 Canada 260 46,530
10 Italy 238 42,544
13
 Major Cases
(Jul-June 2021-22)

S Name of
Brief Facts
# Case

• The exporter with the active connivance of their

authorized clearing agent, M/s S.M Enterprises,
M/s Ansari managed clearance of 220 Kgs “Ketamine” in the
Textile
garb of Textile Yarn through green channel vide
1 Industries
(Pvt) GD No. KPPE-SB-292752 dated 30-06-2021.
Limited • The value of the seized ketamine is US$16 million
(PKR 2.656 billion) concealed in the spools
of yarn.

14
 Major Cases
(Jul-June 2021-22)
S Name of
Brief Facts
# Case
• The exporter with the active connivance of their
authorized clearing agent, M/s M.Z Corporation,
managed clearance of 2,346 Kgs “Ketamine” in
the garb of Liquid Hand Wash through green
channel vide GD No. KPPE-SB-17276 dated 19-
M/s Madni
2
Traders
07-2021.
• The value of the seized ketamine is US$ 41.294
million (PKR 7.020 billion).
• 4 persons have been arrested for the purpose of
investigation.
15
 Major Cases
(Jul-June 2021-22)

S Name of
Brief Facts
# Case
• The exporter with the active connivance of their authorized
clearing agent, M/s I G Y & Sons, managed clearance of Ice
(Crystal Myth) & Ketamine (106 Kg) in the garb of Blended
Dyed/Printed Bed Sheet with Comforter Set through green
M/s Saif channel vide GD No. KPPE-SB-272584 Date 09-06-2021
Trade • The Hong Kong police seized ketamine of US$ 7.25 million
3 Services (PKR: 1.24 Billion).
(NTN# • 4 persons have been arrested for investigation vide FIR dated
0686061) 05-11-2021. Interim challan is submitted & investigation is
underway.
• Seizure report submitted to the Adjudicating Authority and
the case was decided in favor of the department and accused
16
persons filed appeal in Customs Appellate Tribunal.
 Major Cases
(Jul-June 2021-22)

S Name of
# Case
Brief Facts

• GD No. KPPE-SB-177797-26-01-2022
M/s
Wembley • Nature of Offence: The exporter attempted to export counterfeit
4 Sports football having Adidas, Nike brands
(NTN#
1800966) • The contravention has been framed and submitted to Adjudication
authority for adjudication.

17
 Major Cases
(Jul-June 2021-22)

S Name of
Brief Facts
# Case
• The EPZ investor imported 78 pallets of tipping
paper under two GDs. On examination, 28 pallets
were found stored in another premises, M/s Sitara
M/s Trading Company, which is inactive unit, with the
General intent to smuggle these goods to tariff area.
5
Trading • It was found that 50 remaining pallets were
Co. already sold in tariff area. In this regard, FIR dated
02-10-2021 has been lodged, for causing loss
of duty and taxes to the tune of Rs. 26 millions.
• Interim challan is submitted. 18
 Major Cases
(Jul-June 2021-22)

S Name of
# Case
Brief Facts

GD No. KPPE-SB-167637-15-01- 2022

Nature of Offence: Misuse of EOU Facility

Order-In-Original # 1740782-02022022 passed in favor of Dep.
M/s Taiga Amount of duty and taxes recovered:Rs. 881,199.72/-
Apparel Amount of Penalty imposed: Rs. 150,000/-
6
(NTN#
3687342 GD No. KPPE-SB-167651-15-01- 2022
Nature of Offence: Misuse of EOU Facility
Order-In-Original # 1740781-02022022 passed in favor of Dep.
Amount of duty and taxes recovered:Rs. 881,199.72/-
Amount of Penalty imposed: Rs. 150,000/-
19
 Major Cases
(Jul-June 2021-22)

S Name of
Brief Facts
# Case
• A credible information was received that unit has started work
called carry in local trade parlance. Accordingly the Collectorate
was vigilant. The unit in collusion with clearing agent M/s Ahsan
Traders (its own sister concern) filed Goods Declaration No. PQZI-
EP-7519-04-10-2021 declaring thereby the description of goods as
M/s AAA "Rejected Plastic Rolls Waste Assorted sizes and microns" valued
7 at US $ 3366.6 assessable under HS Code 3915.9000
Package
• On examination, CTCP Printing Plates assorted size measuring
33,504 SQM with statutory duty and taxes amounting to Rs 9.5
million were recovered. FIR dated 10-10-2021 has been lodged, for
causing loss of duty and taxes to the tune of Rs. 9.5 millions.
• Interim challan is submitted.
20
 Major Cases
(Jul-June 2021-22)
S Name of
# Case
Brief Facts
• Nature of offence: Misuse of DTRE Facility.

• The exporter attempted to misuse the DTRE Approval

No. LEXP-1634-28102021 by misdeclaring the
consumption of imported material. The approximate
amount of duty and taxes calculated is Rs. 10,375,208/-
M/s Shahkam
8 Industries
• FIR No. 01/2022-EIB-Export(PMBQ) against the
(Pvt.) Ltd.
exporter and the clearing agent has also been lodged in
the Court of Customs and Taxation, Karachi; as the
Exporter was found to be regularly misusing the
DTRE approval granted by Lahore Collectorate.
21
 Major Cases
(Jul-June 2021-22)
S Name of
# Case
Brief Facts
• Nature of offence: Misuse of DTRE Facility.
• GD no. KPPE-SB-188233-06-02-2022 & GD no.
KPPE-SB-188231-06-02-2022.
• Consequent to the criminal case, during initial
M/s Shahkam investigations, the exporter was found to have
Industries misused the DTRE Approval No. LEXP-1634-
(Pvt.) Ltd. 28102021 in other two consignments as well by
misdeclaring the consumption of imported material.
The approximate amount of duty and taxes calculated
is Rs. 14 mil approx. /- Contraventions have been
made in these two cases.
22
 Major Cases
(Jul-June 2021-22)

S Name of
# Case
Brief Facts

• GD No. KPPE-SB-197630-16-02-2022

• Value of offending goods: 190,795/- USD (Rs.

M/s 34,200,003/-)
Harris
10 Brothers • Nature of Offence: The exporter attempted to export
(NTN# counterfeit garments having Adidas, Reebok, Nike,
0669421) Carhartt and CrossFit brands.

• The contravention has been framed and submitted to the

Adjudicating authority for adjudication.
24
 Major Cases
(Jul-June 2021-22)

S Name of
# Case
Brief Facts

• GD No. KPPE-SB-197493-16-02-2022

• Value of offending goods: 52,800/- USD (Rs. 9,464,400/-)

M/s Qaiser
• Nature of Offence: The exporter attempted to export
Enterprises
11 counterfeit garments having Reebok, Champion,
(NTN#
Nickelodeon and Calvin Klein brands. (136 out of 460
2798869)
bales).

• The contravention has been framed and submitted to the

Adjudicating authority for adjudication.
25
 Major Cases
(Jul-June 2021-22)
S Name of
Brief Facts
# Case
12 M/s. Dekalb The exporter mis-declared the utilized input goods in
Trade DTRE Approval. The actual quantity of the imported
input goods utilized i.e. cotton fabric was 516 Kgs.
Whereas it was declared 4,141 Kgs of input goods in
consignment of leather jackets. The Collector
(Adjudication) decided the case in favor of the
Department.
13 M/s Oxy The EPZ investor mis-declared the description and tried to
Traders pilfer furnishing fabric in the guise of used clothing into
the tariff area. They provided forged / fake documents.
Goods destined for KEPZ were examined at Port initially.
The Collector (Adj.) imposed a fine of Rs.12 Million &
penalty of Rs.34 million on the investor/importer. 26
 Major Cases
(July 2022)
Name of
S# Brief Facts
Case
The exporter M/s. Qtinity (NTN 7420120), electronically filed a Goods
14 M/s. Qtinity Declaration No. KPPE-SB-298611 dated 14.06.2022, destined to Rotterdam,
Netherlands having containers No. MSCU-6590981 through their authorized
Clearing Agent M/s Al Kasib (CHAL No. 732), and declared the description of
the goods as 100% Cotton Rolls Grey Fabric (Plain weave) declared weight
12,310 Kgs. The WeBOC system allowed loading under yellow channel on the
basis of profile of the exporter.

The goods of the container were de-stuffed and arranged for thorough
examination which led to recovery of suspected concealment wrapped over cone
beneath the fabric. Upon further scrutiny, the suspicious substance in powder
form was found to be properly concealed and wrapped all over the cone. The
recovered goods were tested on the spot with the help of disposable testing field
kit for narcotic substances which gave positive inference of presence of said to
be Diacetylmorphine hydrogen chloride i.e. Heroin. The activity of examination
continued in recovery of said to be Diacetylmorphine hydrogen chloride i.e.
Heroin total net weight 380 Kgs recovered from 396 rolls. Samples being sent to
notified Lab i.e. HEJ, Karachi. 27
 Major Cases
(August 2022)
Name of
S# Brief Facts
Case
Meanwhile, the Collectorate conducted preliminary inquiry on the basis of
14 M/s. Qtinity information passed and investigation conducted by the Collectorate of Customs,
Exports, Karachi, in a similar case (FIR No. SI/MISC/201/2022-EXP-EW dated
01.07.2022) lodged by them, and it was revealed that criminal activities of drugs
was performed through export consignments by an accused namely Fida
Muhammad S/o Ghulam Dastageer who had been linchpin in narcotics
trafficking and effected exports being actual owner of the impugned goods.

FIR No S1/MISC/22/2022-EIB/EXP/PMBQ dated 22/08.2022 was lodged

accordingly. The role of clearing agent and exporter is under probe and they
were directed to join investigation

28
 Pending DDB Claims as on 30-06-2022
(Rs. In Million)
Prior to Automated Filtered Automated
Total
System System
Collectorate
No. of No. of No. of
Amount Amount Amount
Claims Claims Claims
Exports (PMBQ),
5,366 258 15,898 1,598 21,264 1,856
Karachi
 * claims are pending at trader’s end for acceptance.
 ** claims are pending at trader’s end for acceptance.
 *** The actual pending claims are------ out of which----- claims are
pending at CAO level ready for payment.

29
 PAYMENT OF DUTY DRAWBACK

Automated system Payment from July, 2021 - June, 2022

(Rs. In million)

Collectorate No. of claims Amount paid

Collectorate of Customs
128,056 8,552
Exports (PMBQ), Karachi

30
 Administrative Measures
(July-June 2021-22)
(Rs. In Million)
2020-21 2021-22 % Difference
Measures
Value Value
Anti-smuggling - - -
Auction 9.8419 14.647 48.82%
Recoveries 194.542 98.216 49.51%

31
 Legal Cases
(Jul-June 2021-22)
No. of Cases Cases
Forum Cases decided in decided
pending favor against
Supreme Court 01 NIL NIL
High Court 118 12 03
Appellate Tribunal 41 05 04
Special Judge Customs 13 NIL NIL
Collectorate of
11 12 03
Adjudication
Collector Appeals NIL 05 NIL
32