FBR Imposes Rs2.7 Billion penalty on Gerry’s Dnata in Karachi Air Cargo Scam

KARACHI: The Federal Board of Revenue (FBR) has imposed a massive Rs2.7 billion penalty on Gerry’s Dnata after uncovering an organized air cargo scam at Karachi’s Jinnah International Airport involving illegal clearance of imported goods through fake gate passes and manipulated customs records.

According to officials, the scam was exposed after a detailed investigation by the Collectorate of Customs (Airports), Karachi, which revealed that high-value imported electronic items including laptops, iPhones, iPads, MacBooks, PlayStations and tablets were illegally removed from the airport cargo terminal without payment of customs duties and taxes.

Investigators found that fake and forged gate passes were allegedly generated through Gerry’s Dnata’s computerized system to bypass customs clearance procedures. Authorities said consignments were concealed from the customs monitoring system, allowing goods to be cleared without filing Goods Declarations (GDs) or paying government taxes.

The adjudication orders stated that the fraud was not limited to a few employees but reflected serious institutional failures, weak internal controls and alleged complicity within the cargo terminal operations. Customs officials also accused the company of failing to provide CCTV footage and system logs required under the Customs Act.

In addition to the Rs2.7 billion penalty, authorities have also ordered recovery of more than Rs221 million in unpaid customs duties and taxes.

During the investigation, Customs authorities arrested eight suspects, including five employees of Gerry’s Dnata. Officials said some accused recorded confessional statements, while investigators also recovered counterfeit customs gate stamps allegedly used in preparing fake documents.

The investigation further revealed that several consignments originating from UAE-based suppliers had allegedly been hidden from the WeBOC customs system to avoid scrutiny. The Federal Tax Ombudsman (FTO) had also taken notice of the matter and initiated separate proceedings regarding the large-scale cargo fraud.

Officials described the case as one of the biggest air cargo enforcement actions in recent years, saying the crackdown has exposed deep-rooted irregularities in airport cargo operations and prompted stricter oversight measures across Pakistan’s customs clearance system.