KARACHI: Customs officials have filed a case against a Lahore-based importer accused of evading about 12.23 million rupees ($43,600) in duties and taxes by mis-declaring a consignment of household appliances from the United Arab Emirates, authorities said.
The Collectorate of Customs Enforcement, Karachi, registered a first information report naming Muhammad Rizwan, proprietor of M/s MRC Enterprises, according to the FIR.
The case concerns a Goods Declaration filed June 24, 2026, at the Collectorate of Customs Appraisement (West), Karachi. The goods originated in China and were shipped from the UAE.
Acting on information about duty evasion through mis-declaration of description, specifications, capacity and quantity, and incorrect application of valuation rulings, Customs blocked the declaration for detailed scrutiny. Examination by Enforcement staff began July 27, 2026, at the KICT Examination Area.
Rizwan is listed with two Lahore addresses: House No. 5, Street No. 19, Mohallah Ram Garh, Mohajidabad, Mughalpura, and Office No. 46, 3rd Floor, Big City Plaza, Liberty Roundabout, Gulberg III, Gulberg Town. The FIR also names “others to be ascertained during investigation.”
The importer declared the consignment at 4,945,198 rupees. The clearance Collectorate assessed it at 9,521,885 rupees. According to the FIR, examination found the actual goods were worth 21,937,454 rupees — 12,415,569 rupees more than declared.
Except for a few items, the appliances or their packaging carried stickers and labels with descriptions and specifications that did not match the actual goods, the FIR states. Refrigerators and washing machines allegedly bore fake and incorrect particulars, including model numbers, origin and capacity, on both the goods and their packaging.
Cartons holding air fryers and ovens were printed with the “BEETRO” brand name, but when opened, fake stickers bearing the “BEETRO” marking had allegedly been affixed to the appliances in such a way that removing them revealed the original manufacturers’ names, including LG, Kenwood, Philips, Black & Decker and Sharp.
The FIR says the manner in which the false stickers, labels and packaging were used points to an attempt to misrepresent the goods and “hoodwink the Customs authorities.”
Customs says the alleged mis-declaration was designed to avoid three valuation rulings: No. 1026/2017 dated Feb. 2, 2017, for washing machines; No. 1036/2017 dated Feb. 8, 2017, for refrigerators; and No. 1898/2024 dated July 5, 2024, for household appliances such as ovens, air fryers and juicers.
The importer paid 4,106,934 rupees in duties and taxes on self-assessment, comprising 985,278 rupees in customs duty, 197,057 rupees in additional customs duty, 735,007 rupees in regulatory duty, 1,678,628 rupees in sales tax and 510,964 rupees in income tax.
The clearance Collectorate assessed the total at 9,091,887 rupees, made up of 1,904,379 rupees in customs duty, 380,876 rupees in additional customs duty, 1,297,657 rupees in regulatory duty, 3,205,556 rupees in sales tax, 1,250,167 rupees under the GST head and 1,053,252 rupees in income tax.
Enforcement, on the actual goods, calculated the correct liability at 21,321,013 rupees, consisting of 4,387,491 rupees in customs duty, 877,498 rupees in additional customs duty, 3,128,788 rupees in regulatory duty, 7,512,157 rupees in sales tax, 2,966,845 rupees under the GST head and 2,448,235 rupees in income tax.
The recoverable amount is 12,229,132 rupees, split as 2,483,114 rupees in customs duty, 496,623 rupees in additional customs duty, 1,831,131 rupees in regulatory duty, 4,306,603 rupees in sales tax, 1,716,678 rupees under the GST head and 1,394,983 rupees in income tax.
Customs concludes that Rizwan, “in connivance with other associates in crime,” committed fiscal fraud and mis-declared the actual description of the goods.
