Islamabad, November 30, 2025 – In a major development, the Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to initiate the process for suspending the license of M/s Gerry’s Dnata for its Karachi airport cargo shed, following revelations of a massive customs fraud involving illegal clearance of high-value imported goods.
The directive comes after the FTO concluded a suo motu investigation triggered by a news report regarding a UAE-based cargo handling operator allegedly involved in removing imported goods from Customs custody using fake documents, forged gate passes, and “ghost company” consignments.
According to FTO findings, the fraud—spanning more than 18 months—involved deliberate concealment of airway bills, manipulation of cargo handling systems, and illegal delivery of high-value electronics without payment of duties and taxes. The scam reportedly caused multi-billion-rupee losses to the national exchequer. The investigation also noted potential collusion between Gerry’s Dnata staff and certain Customs officials.
Key Findings of the FTO Investigation
To consolidate the major detected fraud cases, the following summary table lists the consignments highlighted in the FTO’s findings:
Detected Fraudulent Consignments Linked to Gerry’s Dnata
| Consignment / Airway Bill | Importer | Nature of Goods | Status | FIR Status |
| 176-6270880, 176-06992694 | Khalifa General Trading | High-value electronics | Cleared via fake gate passes | FIR lodged (05-09-2025) |
| 176-13730813 | Skyway Impex | Laptops, tablets, iPads, PS5, iPhones, memory cards | Seized before removal | FIR lodged (24-09-2025) |
| 176-00057326 | Premier Star & Technologies | Electronics | Cleared via fake gate pass | FIR lodged |
| 176-04712676, 176-10413782 | Various importers | Electronics | Cleared without GDs or duties | FIRs lodged |
The seized consignment alone carried Rs. 103 million in goods, while duty/tax losses from five fraudulently removed consignments are estimated at Rs. 384 million.
How the Fraud Was Carried Out
The FTO report highlighted systemic loopholes:
• Non-integration between the airline cargo (iCargo) system and Customs’ WeBOC platform.
• Gerry’s staff concealed airway bills, preventing generation of index numbers and keeping consignments “invisible” in the system.
• Fake gate passes were generated using GDs belonging to unrelated pharmaceutical importers.
• Clandestine removal of goods occurred without Customs verification at exit gates.
• Senior management reportedly withheld records during investigation.
FTO Recommendations to FBR
The FTO has issued the following directives:
1. Conduct a nationwide audit of all Gerry’s Dnata-operated sheds covering the last three years.
2. Suspend the Karachi shed license after issuing a show cause notice; cancel it if charges are proven.
3. Investigate Customs officials suspected of collusion and initiate disciplinary proceedings.
4. Ensure electronic integration of iCargo with WeBOC to eliminate manual manipulation.
5. Submit full compliance within 45 days.
The FTO noted that such misconduct falls under maladministration, citing previous incidents involving thefts from Customs warehouses.
This case remains under trial, with multiple FIRs registered and several employees arrested, while senior suspects have been declared absconders.