KARACHI: A huge customs scandal has broken out at Karachi Port, where a terminal operator, BTHP (Bahria Transshipment Hub of Pakistan Ltd.), has been accused of illegally releasing a banned steel consignment, resulting in the loss of potential revenue of over Rs. 23 million.
As per Customs Appraisement-West, the consignment was in official detention within the WeBOC system following an alert by intelligence reports of possible misdeclaration. Notwithstanding this fact, the cargo was released to the importer allegedly.
Thereafter, investigations showed that the importer had declared the items as secondary quality steel coils but physical examination verified they were prime quality Hot Rolled Coil (HRC) steel, which is banned under Pakistan’s Import Policy. The number was also underreported and doubled the attempt at fraud. The value of all the goods seized is estimated to be Rs. 50 million.
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Customs officers said this release was a grave breach of clearance procedures, evading inspection and revealing weaknesses in port surveillance. In its report, the incident mentions that one officer at the BTHP terminal even took fresh samples without alerting senior customs officials, facilitating the release.
Show-cause notice to BTHP states several infractions under the Customs Act, 1969, such as prevention of smuggling and clearance regulations. The penalties can range from huge fines to cancellation of the license of BTHP as a terminal operator. This is not the first time BTHP has come under the spotlight. In 2024, a vehicle from the terminal was intercepted with contraband cigarettes and LCDs, rather than declared second-hand garments. Authorities suspect that smuggling cartels are taking advantage of loopholes in the cargo tracking system following anti-smuggling crackdowns that slowed down transit trade smuggling.
