The Directorate of Post Clearance Audit (PCA), Customs (North) Islamabad, has exposed a major tax evasion scheme by Premium Textile Blanket Industry, Peshawar, involving the misuse of the Export Facilitation Scheme (EFS).
According to officials, the company imported 2,826.1 metric tons of duty- and tax-free textile fabric under the EFS, which was meant to be used for manufacturing garments for export to Afghanistan. Instead of meeting its export commitments, the firm allegedly diverted the imported fabric to local markets, violating customs laws and causing a massive loss to the national exchequer.
When a PCA Islamabad team conducted a physical stock verification, no trace of the imported material was found at the company’s factory premises—confirming deliberate misuse of the scheme.
Following the investigation, Customs framed a contravention case to recover Rs. 1.9 billion in evaded duties and taxes. The Collector of Customs (Adjudication), Islamabad, ruled in favor of the Customs Department.
The company challenged the order through an appeal against Order-in-Original No. 180/2024 (dated August 30, 2024), but the Customs Appellate Tribunal, Islamabad, upheld the original decision and even imposed an additional surcharge of over Rs. 3.9 billion.
