Retired Boeing 737-200s of Shaheen Air Seized by Customs

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Abbas Ali
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Retired Boeing 737-200s of Shaheen Air Seized by Customs

Post by Abbas Ali »

Few months old new report and I think this the reason why phased out/retired Boeing 737-200 Advanced aircraft of Shaheen Air are parked at Karachi Airport. The airline has been stopped by customs from scrapping these twelve aircraft.

Customs seize 12 planes of Shaheen Air, lodge FIR for tax evasion

Bhagwandas

Updated Jun 30, 2014

KARACHI:
The customs authorities have registered a case against the Shaheen Air International (SAI) and seized 12 of its aircraft, directing the airline not to sell or scrap the planes without paying taxes said to be running into hundreds of millions of rupees to the government, it emerged here on Sunday.

The SAI was in the process of selling, scrapping the aircraft, which were parked at Karachi airport, at a price of about Rs1.5 million each, sources said.

Besides the 12 planes sitting idle at the airport for long, the SAI has 18 operational aircraft, of which one plane was damaged in the recent attacks at the airport, said the sources.

The FIR mentioning case No SI/Misc/68/2014 – AFU (Audit) has been registered by customs preventive officer, Syed Hassan Mehdi, against SAI’s managing director, directors and partners for violating Sections 2 (s), 32 (2) & 79 of the Customs Act 1969 which is punishable under clauses 8, 14 & 47 of Section 156 (1) ibid read with Sales Tax Act 1990 and Income Tax Ordinance 2001. No one has been arrested yet.

The description of the SAI’s seized aircraft and their registration numbers are: AP-BIT; AP-BHA; AP-BJI; AP-BJH; AP-BIP; AP-BIR; AP-BIK; AP-BIS; AP-BIQ; AP-BHC; AP-BHB and AP-BIU. The value of, duty and taxes on, these aircraft were to be ascertained, said the FIR.

The FIR says: “It was learnt from a reliable source that M/S Shaheen Air International Limited, Karachi, temporarily imported 12 aircraft (mentioned above) under different lease agreements. It started scrapping the aircraft without getting prior permission from the customs authorities as required under Section 79 of the Customs Act 1969.

“In order to confirm the information the undersigned (Syed Hassan Mehdi) and a team of customs officers from rummaging and patrolling section, Jinnah International Airport, Karachi, physically inspected SAI’s ‘on-ground’ aircraft on the apron of the airport.

“On June 18, 2014, after physical inspection, it was found that 12 different aircraft (as mentioned above) belonging to the SAI that were parked in the ground area behind Bay No 28 at Jinnah International Airport were not intact; fittings therein (including engines etc) had been removed / dismantled.

“Musheernama to this effect was prepared on the spot. The information so received has further revealed that Shaheen Air International has approved a scrap dealer for cutting and removing of aircraft against a payment of Rs1.55 million each for five aircraft, which aspect is being probed into, to ascertain the extent of illegality committed by SAI to the total amount of taxes / duties evaded by them and to identify the persons responsible for the loss to the government exchequer.

“In the meantime, a notice under Section 168(1) has been served upon the management of the M/S Shaheen Air International not to remove, part with or otherwise deal with the said aircraft without prior permission of the customs authorities,” adds the FIR registered at the Customs air freight unit, Jinnah International Airport on June 18, 2014.

The sources said that it was not the first time the SAI had been caught red-handed by the customs evading customs, duties, taxes etc. Just a few weeks back the SAI staffers were caught shifting various goods including aircraft parts at Karachi airport without mandatory documentation and payment of taxes, duties, customs. A case was registered and the SAI admitted it was a mistake, said the sources.

The customs confiscated the goods but offered to release them if the SAI paid taxes plus fine etc, which the SAI paid. SAI deputy managing director Faisal Rafiq had earlier confirmed it in response to queries by DAWN.

Source: DAWN
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flyeconomy
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Re: Retired Boeing 737-200s of Shaheen Air Seized by Customs

Post by flyeconomy »

The only way customs can recover their dues, is by making sure the airline pays their dues. If not, start cancelling their flights or holding them until payment is made.
It will cause some inconvenience, but will ensure everyone pays their dues on time if they wanna keep flying. Same treatment should be for ALL, including PIA, Airblue, Shaheen, and others.
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Abbas Ali
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Re: Retired Boeing 737-200s of Shaheen Air Seized by Customs

Post by Abbas Ali »

Shaheen Air was able to get Boeing 737-201 Advanced registration AP-BHG scrapped at Karachi Airport in 2013, according to following news report.
Rs4,145m tax evasion: Show-cause issued against Shaheen Air Int’l

Reported by: `Sohail Rab

August 15, 2014

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KARACHI:
it has been reported by Air Freight Unit (AFU), MCC-Preventive, Karachi that a credible information was received to the effect that M/s Shaheen Air International Limited temporarily imported 12 aircrafts under different lease agreements of yester years and started scraping the same in the year 2014 without prior permission of Customs authorities as required under Section 79 of the Customs Act, 1969.

The sources informed Customs Today that in order to confirm the information, the complainant and a team of Customs officers from Rummaging & Patrolling Section, Jinnah International Airport Pakistan (JIAP) physically inspected the “On-ground” aircrafts of M/s Shaheen Air International Limited at Apron of JIAP on 18-06-2014.

After physical inspection, it was found that 12 different aircrafts belonging to M/s Shaheen Air International were parked in ground area behind Bay No.28 at JIAP and that the aircrafts bearing Registration Nos. AP-BIT, AP-BHA, AP-BJI, AP-BJH, AP-BIP, AP-BIR, AP-BIK, AP-BIS, AP-BIQ, AP-BHC, AP-BHB and AP-BIU with no intact fittings therein including engines etc were removed.

Subsequently, a team was formed to investigate the matter which was headed by Assistant Collector, AFU (Imports) and an appraising officer. In the meantime, M/s Shaheen Air International filed a petition No.3360/2014 dated 26-06-2014 in the Sindh High Court (SHC) for quashing the instant FIR which was in process of hearing.

It is pertinent to mention here that the Ehsan Khalid Sehbai, Chairman Shaheen Air International and Kashif Khalid Sehbai, CEO Shaheen Air International had obtained pre-arrest protective bails from SHC on 26-06-2014 which was pending confirmation by the Honorable Trial Court, but despite the fact that after obtaining the pre-arrest protective bails, yet they didn’t bother to join the investigation.

The sources further revealed this scribe that the several letters and notices under section 165 of the Customs Act, 1969 were issued to the accused to join investigation and produce the relevant documents but to no avail.

“The non co-operative attitude of M/s Shaheen Air International is creating impediments in the finalization of investigation and efforts being made to collect the documents and examine the accused persons involved in the case”, it added.

The sources further informed that the investigation carried out so far revealed that M/s Shaheen Air International entered into a deal with Siddiq Awan for the auction of the scrap of 5 aircrafts @Rs1550000, the final approval of which was given by accused Ehsan Khalid Sehbai as Chairman Shaheen Air International.
It was further surfaced that prior to the grant of final approval by accused Ehsan Khalid Sehbai, it was also approved by accused Faisal Rafique, deputy managing director (Airline Operations).

In furtherance of the conspiracy, M/s Shaheen Air International sought permission from Civil Aviation Authority (CAA), JIAP and Airport Security Force (ASF) to allow nine persons to carry out the scraping exercise and removal of the scrap from the airport without any permission from the Customs authorities thereby violating the provisions of the Customs Act aimed at evading duty/taxes leviable thereon.

During investigation, Authorities also came to know that M/s Shaheen Air International has disposed of an aircraft bearing registration/tail No. AP-BHG in 2013. In this regard, Group Captain (Retd) Syed Yousaf Chief/Director (Procurement and Logistics) has been examined and relevant documents have been obtained which proves the involvement of M/s Shaheen Air International in the commission of offence.

The documentary evidence gathered so far proves that Syed Yousaf was the main person who maneuvered all the illegalities committed by M/s Shaheen Air International in collusion with others.

It was also known during the course of investigation that M/s Shaheen Air International had also auctioned other aircrafts to scrap dealer M/s Altaf Brother and Basharat without prior permission of Customs authorities. This aspect is under further scrutiny.

The role of Customs staff posted in Audit Section, Import, JIAP was scrutinized and the statements of the concerned officer and UDC were recorded according to which it transpired that no regular audit had been conducted either by the staff of Internal Audit Team, Post Clearance Audit (PCA) and by the staff of Audit Section. The role of Customs staff is being further probed for fixing of the responsibility.

In view of the facts and circumstances, the Customs authorities reached at the point that the accused persons namely Ehsan Ali Sehbai, Chairman Shaheen Air International, Syed Yousaf (Chief/Director Procurement & Logistics), Faisal Rafiq, DMD (Airlines Operations), S M Anwar, Director Legal Services M/s Shaheen Air International, Abriaz Ali Khan, Assistant Legal Advisor, M/s Shaheen International, Altaf and Basharat, scrap dealers thus committed an offence under Section 2(s), 32(2) & 79 of the Customs Act, 1969 punishable under clauses 8,14 &47 of Section 156(1)ibid read with the Sales Tax Act, 1990, Income Tax Ordinance, 2001 and Prevention of smuggling Act, 1977.

The Collectorate of Customs Adjudication-I has summoned the parties on 26 August-2014 for hearing.

Source: customstoday.com.pk


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