President orders fresh probe into alleged destruction of 42 iPhones at Islamabad Airport

President Asif Ali Zardari has remanded a case involving the alleged confiscation and destruction of 42 iPhone 14 Pro Max devices at Islamabad Airport back to the Federal Tax Ombudsman (FTO), directing it to re-examine the matter and decide whether the phones could have been released to the importer upon payment of duties and taxes, Business Recorder reported. 

The representation was filed by the Federal Board of Revenue (FBR) against an earlier order of the FTO related to a complaint under the Federal Tax Ombudsman Ordinance, 2000. The complaint accused officials of the Collectorate of Customs (Airports), Islamabad, of failing to return seized iPhones and falsely claiming that they had been destroyed.

According to the importer, customs authorities had stated that the 42 devices were destroyed. However, the complainant argued that iCloud records showed the devices were still active, with some recently restored, suggesting possible misuse. The importer alleged financial and reputational losses and sought a thorough investigation, accountability of responsible officials, and compensation.

The customs department, in its response to the Revenue Division and FTO, maintained that a fact-finding inquiry had already been conducted following the ombudsman’s earlier recommendations dated May 8, 2024. The inquiry report was submitted to the FTO on September 20, 2024. Officials argued that a second complaint on the same matter was not maintainable, as available remedies included review or representation to the president.

Customs authorities also rejected the importer’s claim regarding active iCloud logins. They stated that iCloud accounts are not device-specific and can be accessed from multiple devices. According to the department, all 42 IMEIs were blacklisted through the Pakistan Telecommunication Authority (PTA), and due process was followed in detaining, recording, transporting, and destroying the phones.

The president’s order noted that the importer’s counsel argued the devices had been confiscated despite the importer’s willingness to pay all applicable duties and taxes. It was further contended that an Assistant Collector of Customs had issued a favourable order allowing clearance of the phones subject to payment of duties.

Observing that the issue required determination on merits, the president directed the FTO to decide whether the items could have been legally cleared upon payment of duties and taxes. The ombudsman has also been asked to examine the claim regarding destruction of the phones.

The FTO has been directed to decide the matter within one month of receiving the president’s order.