The Directorate of Post Clearance Audit, Lahore has arrested an accused involved in a case of misuse of the Export Facilitation Scheme, resulting in an alleged loss of 116.5 million rupees to the national exchequer.

According to the Directorate, M/s Idrees Textile Mills Limited, Kot Shah Muhammad, Warburton, Nankana Sahib, was misusing the EFS facility by illegally disposing of duty-free imported cotton in the local market in violation of the provisions of the Customs Act, 1969, and the conditions prescribed under the Export Facilitation Scheme.

The Directorate commenced audit proceedings and conducted physical stock verification at the registered premises of the unit.

The verification revealed a substantial shortage of imported raw cotton cleared under the Scheme.

The physical stock taking established that 544,212 kilograms of imported cotton, having a value of 471.186 million rupees, were found short, involving duty and taxes amounting to 116.506 million rupees.

Consequently, an FIR was registered against the owners and directors of M/s Idrees Textile Mills Limited and other persons involved for offences.

Staff of the Directorate raided the factory premises in a successful enforcement operation and arrested Kashif Imran, who is alleged to have actively facilitated and assisted in the illegal disposal of duty-free imported goods cleared under the EFS.

The Federal Board of Revenue remains committed to protecting government revenue and facilitating legitimate business, ensuring compliance with customs and trade laws, and taking strict legal action against individuals and entities involved in revenue fraud and misuse of trade facilitation schemes.