The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to conduct a three-year nationwide audit of all import and export sheds operated by M/s Gerry’s Dnata, following allegations of a multibillion-rupee cargo fraud and duty evasion at Karachi’s Jinnah International Airport (JIAP).
The FTO has also recommended immediate proceedings to suspend the company’s cargo shed license, subject to a Show Cause Notice (SCN) to the CEO and a hearing, with potential cancellation if the charges are proven.
The directives, issued under Sections 29 and 30 of the Federal Tax Ombudsman Ordinance, 2000, also call for an investigation into the involvement of Customs officials implicated in the alleged scam. After a fact-finding inquiry and hearing, the case is to be referred to the FBR for disciplinary action under the E&D Rules, 2020.
The investigation, initiated suo motu under Section 9(1) of the FTO Ordinance, followed a news report on October 2, 2025, alleging that a UAE-based cargo handler had removed high-value imported goods worth billions of rupees from Customs custody over the past 18 months. The scheme reportedly involved collusion with Customs staff, reuse of machine numbers from previously cleared pharmaceutical Goods Declarations (GDs), and bogus importing companies with falsified credentials.
At least six consignments of expensive electronics were allegedly removed without paying duties and taxes, highlighting systemic weaknesses in oversight. The FTO noted that while several suspects have been arrested and some fraud uncovered, the scale of the operation suggests that it would not have been possible without active collusion by Customs personnel.
Gerry’s Dnata, as a licensed terminal operator under the Customs Act 1969 and relevant rules, is legally obligated to comply with all Customs procedures. The FTO stated that repeated violations, unchecked revenue losses, and lack of institutional response constitute maladministration under the FTO Ordinance. Previous incidents, including large-scale mobile phone thefts, were also not effectively addressed, underscoring a systemic breakdown in oversight.
ProPakistani has reached out to Gerry’s Dnata for comment and will provide updates as the situation develops.
