Pakistan Customs probes an alleged import and tax-evasion network involving more than 71,000 internet routers.

The investigation involves imports worth around Rs3.2 billion. It also identifies suspected under-invoicing of nearly Rs1.3 billion.

The probe was conducted by Collector Customs Airport, Karachi. Its findings were submitted to the Secretary Enforcement at the Federal Board of Revenue.

The investigation focuses on two companies, Muslim Son’s Enterprise and Moosani/Musani Syndicate. Officials have raised questions about their import activities and business operations.

The report also highlights several other concerns. These include tax irregularities, questionable addresses and possible links between the companies.

Investigators also examined common digital footprints and possible beneficial ownership connections. The report further raises concerns about potential trade-based money laundering.

Over 71,000 Routers Imported Without PTA Approval

According to the investigation, 71,815 internet routers entered Pakistan through 10 Goods Declarations.

The consignments were processed through the Pakistan Customs Air Freight Unit. They were also handled through the Airport Facilitation Unit in Karachi.

The imported routers reportedly lacked mandatory PTA Type Approval and Clearance Certificates. This was described as a violation of the relevant import rules.

The report cites SRO 1172(I)/2021 and the Import Policy Order in this regard. Customs seized the consignments and later ordered their confiscation after adjudication proceedings.

The companies challenged the action before the Federal Tax Ombudsman. Their complaints were later dismissed, according to the report.

The declared value of the routers was approximately Rs97 million. Customs later reassessed their value at around Rs565 million.

The investigation estimated the alleged under-invoicing at nearly Rs1.3 billion. Total imports, including duties and taxes, were valued at about Rs3.269 billion.

The report also examines the financial capacity of the companies. Their owners reportedly started with capital of only Rs2.2 million.

Their combined capital later reached a maximum of around Rs77.7 million. Investigators said this remained insufficient for even one month of imports.

Questions Over Company Addresses

Customs also probes the physical addresses linked with both companies. Investigators reportedly found unusual circumstances at the registered locations.

One address was reportedly being used by a rice and flour shop. Another address was identified as a rented residential property.

Investigators said they found no functioning corporate office at either location. The report alleges that front men were used to register the companies.

It further describes the companies as being allegedly used as “market IDs.” One company was registered with the FBR as a service provider and general order supplier.

The report said it was not registered as an importer. Investigators examined the matter under Section 32A(1)(b) of the Customs Act, 1969.

The investigation also considered possible links with the Anti-Money Laundering Act, 2010. These concerns relate to potential predicate offences and financial activity.

Common Digital Footprints Raise Questions

Investigators also examined digital activity connected with the companies. The findings showed thousands of unique IP addresses.

WeBOC records showed 2,983 unique IP addresses for one company. The second company reportedly used 2,732 unique IP addresses.

Together, the companies were linked to around 5,715 unique IP addresses. However, investigators found 1,048 IP addresses common to both companies.

The shared digital activity has raised further questions about their relationship. Officials are examining whether the companies had operational or ownership links.

The customs report highlights several areas requiring further examination. These include import declarations, taxation, company ownership and financial transactions.

The probes into the alleged network could determine whether further legal action is required. The findings remain allegations contained in the customs investigation report.

The probes also underline concerns about customs compliance and possible misuse of import channels. Authorities are expected to examine the evidence before reaching final conclusions.

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