Dh140m Dubai smuggling operation busted

Dubai An Indian manager conducted a cigarette smuggling operation worth Dh140 million over two years after exploiting a loophole in a customs computer system, the authorities have claimed.

The man, identified as A., is accused by Dubai Customs of avoiding charges at Jebel Ali Free Zone in order to get undeclared cigarettes onto the local market.

He has now been banned from leaving the country while the case is being investigated.

"Prosecutors accused the Indian company manager, identified as A., of evading nearly Dh140 million in custom fees," investigating prosecutor Ahmad Al Attar told Gulf News yesterday.

"He smuggled out from Jebel Ali Free Zone cigarette brands into the local market without declaration.

"A travel ban was issued in his name because it was allegedly discovered that he was planning to leave the country."

Senior Chief Prosecutor Sami Salem Al Shamsi, Head of Bur Dubai Prosecution, said financial experts were brought in to uncover evidence.

237 transactions

"The company's manager outsmarted Mirsal 2, the e-customs declaration system, and made 237 transactions and smuggled into the local market different brands of cigarettes during two years," Al Shamsi said in a statement yesterday.

"He did so without completing the customs clearance procedures and declaring it as well.

"Dubai Customs hired auditing experts, who conducted their own questioning and discovered the process of customs evasion that was committed by the suspect. He tried to elude the customs' questioning a number of times."

Chief Prosecutor Khalid Al Zarouni, who supervised the team of investigating prosecutors, said: "The different brands of cigarettes that the suspect smuggled into the market without paying customs fees have high customs value.

"Suspects who evade customs fees on these kinds of expensive products, could end up facing a fine that could reach 200 per cent according to GCC's Unified Customs Law and its bylaws and its clarification memorandum of 2003.

"Dubai Customs released auditing reports confirming that the suspect committed the crime of customs evasion.

"Suspects who evade paying customs fees would face criminal action… and such a crime has negative impact on the national economy and influences the trust in commercial transactions."

A. will stand trial before Dubai Misdemeanor Court, although a date is yet to be fixed.