The Directorate General of Transit Trade has foiled a major attempt to evade more than Rs683 million in duties and taxes through the alleged illegal clearance of cigarette paper, acetate tow and foreign perfumes concealed under declarations of printed and misprinted paper rolls.

Two containers carrying thousands of kilograms of cigarette-manufacturing materials and other goods were intercepted at Karachi port, exposing what officials described as a major revenue-evasion attempt involving the misdeclaration of restricted and heavily taxed imports.

According to officials, the seized consignments included 4,934 kilograms of cigarette paper, 47,273 kilograms of acetate tow, assorted international brand perfumes and mineral water. The goods had allegedly been declared as printed and misprinted paper rolls and sheets to facilitate clearance at substantially lower duty rates.

The two containers had initially been declared at a combined value of approximately Rs1.8 million. However, detailed examination pushed their assessed value to more than Rs106 million, while the actual duties and taxes payable exceeded Rs684 million, according to the case record.

The alleged duty and tax evasion has been estimated at more than Rs683 million, representing a substantial potential loss to the national exchequer had the misdeclaration gone undetected.

The operation followed information shared by the Anti-Narcotics Force with customs authorities. A joint examination subsequently confirmed the presence of cigarette paper and acetate tow concealed under the declared description of printed paper.

The Custom House laboratory confirmed that the seized tow was cellulose acetate and that the paper was uncoated cigarette paper used in cigarette manufacturing. Cigarette paper is a restricted import under Pakistan’s Import Policy Order 2022 and can only be imported by eligible entities meeting prescribed conditions.

The Directorate General of Transit Trade has registered a criminal case against the relevant parties associated with Green Pak Enterprises, Lahore, EQA Corporation ( Custom agent) and Pak Shaheen Cargo Services. The investigation concerns alleged misdeclaration of the description, classification and quantity of imported goods, along with suspected violations of customs and other relevant laws.

According to sources, the investigation had been widened to examine whether other consignments had previously been cleared through the same alleged method. Investigators are also pursuing the identification of other individuals who may have facilitated or benefited from the transaction.

The seizure has renewed scrutiny of the movement of acetate tow, a key raw material used in cigarette-filter manufacturing. Officials have raised questions over the near cessation of declared imports of the material during the past two years despite an increase in cigarette production, pointing to the possibility of illicit supply chains or imports concealed through false declarations.

The case is being viewed as a significant test of customs enforcement against sophisticated misdeclaration schemes that exploit transit and dry-port channels to evade duties and taxes.

The investigation is continuing to unearth the whole network involved in this scam, sources added.