KARACHI: The Federal Investigation Agency (FIA) has shortlisted 54 multinational companies, mainly from oil and gas sector, which allegedly evaded nearly Rs 3,800 million taxes and duties by re-exporting their equipment and consignments. These frauds and tax evasion have been done by misusing the benefit of SRO-678(I) 2004 presenting forged and fake corporate guarantees for customs clearance.
Sources told Customs Today that the FIA’s Crime Cell and the Anti-Corruption circle Karachi have detected this mega fraud during the enquiry against M/s BPG (Pakistan) Limited in which the FIA made historical recovery in mega tax evasion scam in November 2017. Sources said that an FIR number 33/2017 was registered which was the outcome of Inquiry No. 43/2017 of FIA, ACC, Karachi, registered in this circle regarding fraudulent re-export of surveying equipment of M/s BGP (Pakistan) International, on the strength of bogus/forged documents, without paying leviable duties/taxes. The consignment was scheduled for shipment to China on 03.10.2017 through their custom clearing agent M/s International Moving & Trading Company (IMT Co), which was intercepted by FIA on 02.10.2017.
According to the FIA’s source some officials of Pakistan Customs deputed at Port Qasim including two deputy collectors and two appraisement officers were involved in the scam that facilitated the multinational companies to re-export their equipment and consignments illegally against the huge bribe.
After lodging of FIR No. 33/2017, the Country Manager Zhang Zhongmin and Deputy Country Manager Li Chonghong of M/s BGP Pakistan International were arrested on 23.11.2017. During remand period, M/s BGP Pakistan International through their finance controller agreed to pay the evaded revenue against 125 corporate guarantees and have voluntarily submitted.
Consequent upon timely action of FIA, Pakistan Custom Authorities have started contravention proceedings against M/s BGP (Pakistan) International & M/s IMT Co (Clearing Agent), on the charges of evasion of leviable duties & taxes by misusing benefit of SRO-678(I) 2004 presenting Forged/ Fake Corporate Guarantees for Customs Clearance.
Further investigations revealed that around 54 multinational companies adopted the way that M/s BPG (Pakistan) Ltd had used and got customs clearance for shipment of surveying equipment without duties & taxes by misusing provision of SRO-678(I)/2004, in connivance with their clearing agent M/s IMT Co. Examination of the documents revealed that customs authorities had cleared the goods on the basis of fake/bogus corporate guarantees. The goods meant for re-export through GD KAFE-SB-1999 dated 28.09.2017, were earlier imported in year 2014 & 2015.
M/s BGP (Pakistan) International is working in Pakistan since 1995 and is engaged in business with numerous Oil & Gas producing companies. M/s BGP (Pakistan) International has imported hundreds of consignments of Surveying equipment under provision of SRO-678(I) 2004 but the company didn’t complied with terms and regulations of SRO-678(I)2004. The temporary imports are immune to levied duties & taxes subject to providing a Corporate Guarantee for each consignment whereby importing company indemnify that imported goods will be re-exported within two years (now five years) or completion of project, whichever is earlier. However M/s BGP (Pakistan) has not re-exported any temporarily imported consignment of surveying equipments so far, thus, causing serious violation of SRO-678(I) 2004.
M/s BGP (Pakistan) International fraudulently tried to re-export its surveying equipment imported in the years 2014 & 2015, on the strength of fake/bogus Corporate Guarantees. The consignment was detained and adjudication proceedings are underway at Customs while FIA is looking after criminal aspect of the case, which culminated into FIR No.33/2017.