Customs launches crackdown to check smuggling of gold, forex

Personnel of the Collectorate of Customs Preventive has led a crackdown against smugglers and recovered a huge quantity of gold worth millions of dollars.

The force has also established a desk containing software at the Jinnah International Airport to check transactions of dollars internationally.

The spokesman for the Customs Preventive said on Saturday that in the wake of the recent hike in the US dollar’s value and apprehension of smuggling of foreign exchange out of Pakistan as well as reports that gold might come into Pakistan through different channels, especially through airports, keeping in view the recent declining trend in the prices of gold in international market, the Collectorate of Customs (Preventive), Karachi, has taken immediate steps under the specific directions issued by the finance minister.

In this context, a crackdown on elements who might be involved in the smuggling of foreign exchange was started on the night of November 30.

This operation is being spearheaded by the chief collector (Enforcement —South) and the collector (MCC Preventive), Karachi. Special teams have been constituted under the supervision of the additional collector (Jinnah International Airport) to profile, inspect and search the suspected passengers and their baggage.

The strength of the staff posted at airport has been increased with an additional work force. Baggage of all passengers is being scanned to check the smuggling of currency, gold and other contraband items.

Moreover, these teams have been directed to inspect all suspected areas at the airport as well as aircraft. 

During the last two months, customs staffers at the airport have seized currency worth Rs63 million in three cases and 2.21kg gold worth Rs9.4 million in two cases.

In addition, more than 1,500 bottles of liquor and other goods worth Rs20 million have also been seized. 

As a consequence of the recent countrywide effort by the Pakistan Customs, the rate of the US dollar has come down in open market from Rs108.10 to Rs106.50; however, keeping the dollar at a reasonable exchange rate, a consistent effort is required.

In order to regulate the flow of currency and facilitate bona fide passengers, a currency declaration desk has already been established at the international arrival and departure lounges where they can make their declarations as per the State Bank of Pakistan regulations.

As per the current regulations of the SBP, an adult passenger cannot carry foreign currency of more than $10,000 at one time and $60,000 during a year.

To implement and enforce these regulations, an enforcement mechanism is required that may not only be effective in nature but also facilitate passengers. Keeping this in view, a currency declaration software has been introduced at the airport.

This is the first and most effective effort to monitor and control the movement of foreign currency through the airport.

The system will be implemented in three phases. Phase-I relates to the development of the concept and development of software which has been completed and information is being captured now at the moment. Till now, data pertaining to almost 450 passengers has been entered.

At present, this software is working as a standalone system. However, in Phase-II, the system is now being upgraded to a web-based system and will be replicated at all airports in Pakistan to regulate the monetary limits.

In Phase-III, the system will be upgraded to receive the Advance Passenger Information (API) directly from the airline and will work on a sophisticated risk management system and proactive profiling.