Islamabad — President Asif Ali Zardari has remanded a high-profile case involving the alleged mishandling and fraudulent destruction of imported iPhones at Islamabad Airport back to the Federal Tax Ombudsman (FTO) for a fresh and comprehensive review.
The case centers on serious allegations of maladministration by customs officials, who reportedly failed to return 42 high-end iPhone 14 Pro Max devices to the importer despite the latter’s willingness to pay all applicable duties and taxes. Customs authorities had claimed that the seized phones were destroyed, a claim now under renewed scrutiny following the President’s directive.
Allegations of Fraud and Mishandling at Islamabad Airport
According to the complaint, customs officials at Islamabad Airport allegedly engaged in fraudulent practices by falsely declaring the destruction of the devices. The importer maintains that technical evidence shows several of the phones remain active, raising serious concerns about misuse, corruption, and lack of accountability within the customs department.
The complainant further alleged that some of the confiscated phones were recently restored, suggesting they were not destroyed as claimed. This, he argued, resulted in substantial financial losses and reputational damage.
Case Sent Back to FTO for Fresh Determination
President Zardari ordered that the matter be re-examined by the Federal Tax Ombudsman to determine:
• Whether the 42 iPhones could legally have been released upon payment of duties and taxes
• Whether customs officials misrepresented facts regarding the destruction of the devices
• Whether proper legal procedures were followed during seizure and destruction
The President directed the FTO to resolve all outstanding issues within one month of receiving the order.
Background of the Dispute
The importer initially filed a complaint under the Federal Tax Ombudsman Ordinance, 2000, alleging that customs officials wrongfully confiscated and later claimed to have destroyed the devices. In response, the Collectorate of Customs (Airports) Islamabad stated that a fact-finding inquiry had already been conducted and submitted to the FTO in September 2024, concluding that the phones were lawfully destroyed.
Customs officials argued that the complainant’s claim — based on active iCloud logins — was inadmissible, as iCloud accounts are not device-specific and can remain active on other hardware. They also confirmed that all 42 IMEI numbers had been blocked through the Pakistan Telecommunication Authority (PTA).
President Questions Customs’ Claims
However, the President observed that a favorable order had previously been issued by the Assistant Collector of Customs, allowing release of the devices upon payment of duties and taxes. He noted that the FTO should have decided the matter on its merits, especially regarding whether lawful clearance was possible.
The President also emphasized that the allegation of false destruction must be thoroughly investigated to ensure transparency, accountability, and rule of law.
Call for Accountability and Systemic Reforms
The importer has demanded a transparent and impartial inquiry, identification of responsible officials, compensation for financial losses, and structural reforms to prevent similar incidents in the future.
The case has once again highlighted the urgent need for stronger oversight mechanisms and accountability within Pakistan’s customs operations, particularly at major international entry points such as Islamabad Airport.