KARACHI: The Customs Adjudication has issued an Order-in-Original (ONO-2049307-23102026) ordering the outright confiscation of a massive consignment of restricted cigarette paper weighing 49.29 metric tons, along with the imposition of heavy financial penalties on both the importer and the clearing agent for their involvement in a sophisticated tax evasion and fake manufacturing scam.
The case was detected following the proactive instructions of Collector Appraisement East Afzall Wattoo. The enforcement team, comprising Additional Collector Nauman Tashfeen, Deputy Collector Hameer Khan, and Senior Preventive Officer Malak Hasim, successfully unearthed the fraud, leading to the adjudication order.
According to the official order, the importer, M/s Imperial Tobacco (NTN 2822595), registered at an address in District Diamer, Gilgit-Baltistan, imported a consignment of Cigarette Paper under PCT heading 4813.2000. The goods, valued at Rs 26,548,728, were imported through an in-bond General Declaration (GD) and cleared via authorized Customs Agent M/s Perfect International.
Investigations revealed a glaring anomaly: the FBR online portal showed M/s Imperial Tobacco and M/s N. S. Enterprises registered under the same NTN. Furthermore, credible intelligence prompted inquiries into the declared manufacturing premises. Verification from the Collectorate of Customs Gilgit-Baltistan, the Deputy Commissioner Diamer, and the Large Taxpayers Office (LTO) Karachi confirmed that no such manufacturing unit existed at the declared address.
It was established that Cigarette Paper is a restricted item under Serial No. 13 of Part-II of Appendix-B to the Import Policy Order, 2022, and can only be imported by legitimate cigarette manufacturers registered with the FBR and the Government of Azad Jammu & Kashmir. By fabricating its manufacturing premises, the importer not only illegally imported restricted goods but also fraudulently availed an inadmissible exemption of Additional Sales Tax and Income Tax/WHT amounting to Rs 445,334.
The order noted that the importer, in active connivance with the clearing agent, had already ex-bonded 23.85 MT of the consignment using two separate GDs before a third GD was placed on manual hold by customs authorities. The LTO has since issued a pre-suspension notice and subsequently suspended the registration of M/s Imperial Tobacco due to its dubious tax profile.
Despite being given the opportunity, the importer failed to appear for the hearing or submit any response.
In his ruling, the Adjudicating Authority stated that the charges of importing restricted goods against fake registration were fully established. Exercising powers under Section 179 read with Clause 9, 14, and 14A of Section 156(1) of the Customs Act, 1969, the Authority ordered the outright confiscation of the entire 49.29 MT of goods. This includes 11.925 kg currently lying in the bonded warehouse and 13.515 kg in process.
Additionally, a personal penalty of Rs 5 million was imposed on the importer, M/s Imperial Tobacco, and Rs 1 million on the clearing agent, M/s Perfect International, for violating the provisions of the Import Policy Order and the Customs Act.
