The Federal Board of Revenue (FBR) has imposed penalties worth Rs2.7 billion on M/s Gerry’s Dnata (Pvt) Ltd after adjudication proceedings confirmed the company’s involvement in a large-scale customs fraud linked to the illegal clearance of imported electronic goods.
The case was detected by the Collectorate of Customs (Airports), Karachi, which uncovered a sophisticated scheme used to clear high-value imported consignments without following mandatory customs procedures.
According to investigation findings, airway bills were deliberately concealed, index numbers were deleted from records, and fake gate passes were generated through the company’s internal system. The manipulation allegedly enabled consignments to bypass the customs tracking framework and leave the cargo terminal without proper clearance.
Officials said the fraudulent scheme allowed imported goods to be removed without filing Goods Declarations (GDs) or payment of applicable customs duties and taxes. In addition to the penalty, authorities have also ordered recovery of Rs221 million in unpaid duties and taxes.
The investigation began after customs officials intercepted suspicious consignments at Gerry’s cargo shed containing luxury electronic items, including smartphones, laptops, tablets, gaming consoles and other expensive gadgets. The consignments were allegedly being cleared using forged gate passes.
Further scrutiny revealed that at least five additional consignments had already been cleared through the same method. Investigators said the shipments originated from suppliers based in the United Arab Emirates (UAE) and were allegedly hidden from the WeBOC customs clearance system.
The adjudication order stated that the irregularities reflected systemic weaknesses, poor internal controls and possible institutional involvement within the terminal operations.
Authorities also accused the company of obstructing the investigation by failing to provide CCTV footage, system logs and other records required under the Customs Act, 1969. Officials stated that repeated notices were ignored and mandatory information under Section 211 of the Customs Act was not fully provided.
So far, eight individuals have been arrested in connection with the case, including five employees of Gerry’s Dnata. Confessional statements have reportedly been recorded during the course of the investigation.
According to officials, one female employee admitted issuing fake gate passes on the instructions of supervisors, while a cargo agent disclosed the existence of an organized network allegedly involved in manipulating cargo records and systematic pilferage of imported goods.
Investigators also recovered counterfeit customs stamps that were allegedly used to prepare fraudulent gate passes for unauthorized cargo clearance.
