ISLAMABAD:A post-clearance audit by the Customs authorities has unearthed serious discrepancies in the import of a 2023 model Toyota Land Cruiser under Pakistan’s baggage scheme, raising questions about under-invoicing, ownership claims, and compliance with statutory requirements.
According to the audit conducted under Section 26A of the Customs Act, 1969, the importer declared the value of the vehicle at just Rs 17,635 on the Goods Declaration (GD), while the sale invoice reflected a value of USD 5,000—equivalent to approximately Rs 1.39 million—indicating under-invoicing of about 98.7 percent. However, the customs assessing officer valued the vehicle at over Rs 10 million, and duty and taxes amounting to more than Rs 17.2 million were paid through the bank account of a clearing agent, with no proof of transfer from the importer’s own account.
The importer had claimed the vehicle as “personal baggage,” which under the rules requires prior ownership and direct purchase by the passenger. However, passport records showed the individual resided in the United Arab Emirates and had not travelled to Japan, where the vehicle was bought and shipped from. The online auction sheet confirmed the vehicle was sold in Japan on November 2, 2024, and not in the importer’s name. Shipment records, including the export certificate, identified a Japanese firm, M/s MDK Corporation, as the consignor and shipper, suggesting the import was commercial in nature rather than personal baggage.
Further, the Customs audit noted that the vehicle remains unregistered in the importer’s name months after clearance and appears intended for another buyer. The absence of a dated purchase invoice, proof of payment, and earning certificates to justify the source of funds, coupled with substantial remittances withdrawn from the importer’s account before the import, have deepened concerns over the legitimacy of the transaction.
Industry sources said that this case has pointed toward a possible modus operandi where passports of overseas Pakistanis are being used to facilitate commercial imports under the guise of personal baggage, circumventing restrictions and lowering duties payable.
It is pertinent to mention here that the importer has been directed to produce the Japanese export certificate, complete purchase documentation, and proof of legitimate payment through banking channels within a week, failing which proceedings will be initiated for misdeclaration, false statements, and wrongful claims under the Customs Act, 1969.
