The Directorate of Post Clearance Audit (Central), Lahore, has achieved a significant enforcement milestone by arresting an accused involved in a major case of misuse of the Export Facilitation Scheme (EFS), resulting in an alleged loss of Rs. 116.5 million to the national exchequer.
The action was initiated after the Directorate received credible information that 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 Rs. 471.186 million, were found short, involving duty and taxes amounting to Rs. 116.506 million.
Consequently, an FIR was registered against the owners and directors of M/s Idrees Textile Mills Limited and other persons involved for offences relating to fiscal fraud, unlawful removal of goods, misdeclaration, and evasion of duty and taxes under the relevant provisions of the Customs Act, 1969.
On 02.06.2026, staff of the Directorate raided the factory premises in a successful enforcement operation and arrested one of the accused, Mr. Kashif Imran, who is alleged to have actively facilitated and assisted in the illegal disposal of duty-free imported goods cleared under the EFS.
This case represents an important enforcement measure and is among the first criminal proceedings initiated by the Directorate of Post Clearance Audit (Central), Lahore, following the delegation of powers for registration of FIRs and initiation of criminal proceedings under the amended EFS framework introduced through SRO 1655(I)/2025.
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.
