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pAkIStAN’S fIRSt INDepth NewSpApeR oN cuStoMS

Daily

Vol 1 Issue No. 171

Karachi, Tue September 1, 2015

MULTAN

IMRAN ALI

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he Federal Board of Revenue (FBR) will restore the circle ofPice of the Regional Tax OfPice in Multan City for the collection of taxes from October 1, 2015. According to details, Central Secretary Federal Revenue Alliance Tahir Khakwani told Customs Today that the FBR is going to reinstate the circle tax ofPices located in the jurisdiction of Regional Tax OfPice Multan very soon. The Federal

Board of Revenue had closed the circle tax ofPices six years ago.

Circle tax ofPices in Multan Regional Tax OfPices will start their operation again after the restoration of circle ofPice existed in the power from 1st October.

Every tehsil will be comprised of two circle tax ofPices in the Regional Tax OfPices for the collection of taxes. These two circle ofPices will assist the general masses in the collection of taxes through their tax facilitation centers in the tehsils.

Price Rs. 14.00

Central Secretary Federal Revenue Alliance Tahir Khakwani further told that employees from Regional Tax OfPice Multan will be given special training before assigning them tasks in the circle tax ofPices very soon.

Customs seizes electronics goods worth Rs 2m in separate incidents

Customs Intelligence confiscates smuggled auto parts

Dar okays new trade policy draft, sends to PM for final approval

Court defers verdict in gold smuggling case

Turkish Airlines to start direct flights from Islamabad to Baku

DG Customs Intelligence Rawalpindi has seized smuggled electronics | See pAge 02 |

ASO seized smuggled cloth in Faisalabad.

The market value of seized cloth | See pAge 03 |

Dar has okayed the new trade policy’s draft for next three years and sent it to PM| See pAge 04 |

The judgment in a long–drawn gold smuggling case was deferred as the judge | See pAge 02 |

Turkish Airlines is planning to launch direct flights from Islamabad to Baku | See pAge 09 |

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30 excise employees issued charge sheet on graft charges Tuesday, September 1, 2015

National

ISLAMABAD: The Director General Excise and Taxation has issued charge sheet to 30 employees of Rawalpindi Motor Branch allegedly involved in corruption of Rs 130 million.

During the review of yearly audit observations, it was observed that from December 2012 to June 2013 at least Rs 130 million of irregularities were made in wake of life time token tax of vehicles and professional tax by the official of Rawalpindi region.

The audit officials submitted a report to DG Excise for further action.

customs seizes electronics worth Rs 2 million in separate incidents

court defers verdict in gold smuggling case KARACHI

MohAMAMD YouSAf www.customsbulletin.com

ISLAMABAD

ShAhID MINhAS

he judgment in a long–drawn gold smuggling case was deferred as the judge of the Special Court of Customs Taxation and Anti-Smuggling was on leave.

The court office has set September 17, 2015 for the pronouncement of the judgment. Earlier on, August 9, 2015, Judge Syed Faiz Rasool Rashdi had reserved the judgment after hearing final arguments from both sides and had set August 29 for pronouncement of the judgement.

According to the prosecution, in February 1996 the Anti-Smuggling Organization of Pakistan Customs had thwarted a bid to smuggle gold into the country. The ASO had caught a boat with 12000 tolas of gold worth estimated at Rs 600 million. Four suspects Hussain, Dawood, Abbas and Muhammad Umer, who were on the boat, were arrested. Subsequently, the custom authorities had registered a case against the accused persons under the relevant sections of Customs Act 1969.

The accused were later released by the Court on bail. According to the official sources, it is a long-drawn smuggling case in the history of such cases as it suffered inordinate delays because of frequent transfers of investigation officers and prosecutors.

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irectorate General Customs Intelligence and Investigation Rawalpindi has seized smuggled electronics and ladies cloth worth Rs 2 million.

Sources told Customs Today that the Directorate General Customs Intelligence and Investigation Rawalpindi has seized Rs 2 million of smuggled goods having duty taxes of Rs 1 million during antismuggling drive. The seized goods include 148 kilograms of ladies cloth worth Rs 1.2 million from a passenger bus bearing registration no. Z-1763 which was coming from Peshawar at GT road while Rs 0.9 million of electronic goods from another bus bearing registration no, P-1142 near Attock.

The customs Intelligence staff has registered separate smuggling cases against them and forwarded the case for further proceedings.

Meanwhile, SLAMABAD: Customs Investigation and Intelligence and Motorway Police have joined hands to contain smuggling activities conducted through motorways of the country.

This decision was taken in a meeting between Director General Customs Intelligence, Lutfullah Virk, and Inspector General Motorway Police, ZulPiqar Cheema.

Under this agreement, the Customs Intelligence and Motorways Police will appoint additional director and SSP level ofPicers respectively as focal persons.

Customs Intelligence has appointed Additional Director Muhammad Saleem as focal person

while on his directions Deputy Director Shahid Jan will oversee the operations at motorway.

OfPicials told that Customs Intelligence will inform the motorway police about smuggling activities through an SMS on which police will intercept the vehicles

concerned at motorway and informed the customs ofPicials for further action.

Customs and motorway ofPicials have foiled two smuggling bids in joint operation so far in which smuggled cloth and electronics were recovered from a bus and a vehicle.

Customs Adjudication issues notice to suspect for appearing in court ISLAMABAD

ShAhID MINhAS

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he Customs Adjudication Islamabad has issued a show-cause notice to alleged smuggler involved in smuggling of 810 kg of fabric.

According to the details,

the anti-smuggling wing of Directorate of Customs Investigation and Intelligence Rawalpindi has impounded a passenger bus bearing Registration No. LZV-0090 coming from Peshawar following the charges of smuggling of cloth.

The Customs Intelligence also lodged an FIR No. 16/205 against the owner named as Saher Gul but he got pre-arrest bail from the special court.Now, the Customs In-

telligence has sent case to adjudication where Deputy Collector Kaukab Farooq has issued notice to accused and ordered him to appear before the court within ten days.

On the other hand, the deputy collector has also declared the cloth as smuggled one which has been brought into the country by making violation of provision of Section 2(s) and 16 of the Customs Act 1969.

Meanhwhile, Additional Collector Customs Adjudication Peshawar, Karam Elahi, has issued orders for the release of two trailers loaded with electronics and other items after payment of 20 percent of value of seized goods for each as Pine.

Additional Collector Elahi issued two separate Orderin-Originals (ONOs) No. 37/2015 and 40/ 2015 in this regard.As per details, the

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Dubai police nab 5 Asians for smuggling 148kg poppy DUBAI: Five Asians were arrested for smuggling and attempting to sell more than 148kg of poppy seeds in Dubai.

Major General Khalil Ebrahim Al Mansouri, Assistant to the Dubai Police Chief for Criminal Investigation Affairs, said the operation took place on August 25, and led them to discover a new way smugglers use to hide drugs.

He said that four of the suspects were of the same nationality and one was from a different Asian nationality, and they worked together to smuggle, hide and sell the drugs.

customs foils bid to launder Rs 8m at Jinnah airport KARACHI

AftAB chANNA

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akistan Customs has foiled a bid to launder money to the tune of Rs 8 million from Jinnah International Airport Karachi. According to details, the officials of the Model Customs Collectorate-Preventive intercepted two passengers namely Rehmat Khan and Ali Karani on the basis of profiling. These passengers were going to Dubai. While body search, the customs officials recovered Rs 5 million from Rehmat Khan and Rs 3 million from Ali Karani. The currency was concealed inside the shoes and was recovered from the shoes of both the passengers. The customs authorities arrested both the passengers and an FIR has been registered against these passengers.

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NLc not handing over locomotives to Railways LAHORE

MuhAMMAD NAwAZ www.customsbulletin.com

ational Logistic Cell (NLC) and Pakistan Railways (PR) join hands for the revival of freight trains operations but failed in achieving the required results. Sources told Customs Today that National Logistic Cell and Pakistan Railways signed an agreement for supply of ten locomotives of NLC to Pakistan Railways on twelve years lease enabling Pakistan Railways to run more freight trains.

Now Pakistan Railways buying locomotives from China from which most are reached Pakistan besides this Railways also signed to buy ten more locomotives from NLC. Agreement between NLC and Railways was signed on November 14 2014, but after passage of nine months period NLC not supply a single locomotive to Pakistan Railways.

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Tuesday September 1, 2015

National

faisalabad ASo seizes smuggled art silk cloth FAISALABAD

IMRAN ALI

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he Anti Smuggling Organization ( ASO) seized smuggled cloth in Faisalabad. The market value of seized cloth is Rs 4.38 million involving duty and taxes amounting to Rs 79,600.

Sources told Customs Today, Collector Customs MCC Faisalabad Tauseef Ahmed Qureshi received a credible information regarding smuggling of silk art cloth. After receiving the information Collector Tauseef Ahmed Qureshi constituted a special team comprising Zahid Bukhari (superintendent), Mehmood Ahmad (inspector), Muhammad Salam, Atta Muhammad, HaPiz Naseer (sepoys).

The ASO team raided godowns of Mushtarka Zaindara Goods which is situated at Jhang Road and seized the art silk cloth.

Two persons Imran son of Muhammad Ramzan who is resident of Duniyapur Lodhran, Muhammad Rashid son of Mohammad Yaseen resident of Jhang were arrested. The ASO team asked the accused person to produce legal documents regarding possession of cloth but they failed to provide the same.

After their failure ASO team seized the cloth and registered a case against accused persons.

Meanwhile, The Customs Anti-

Smuggling Organisation of Jhang City has conPiscated smuggled whey powder (food supplement) valued at Rs 705,000 involving duty/taxes amounting to Rs 149,225.

According to the details, the ASO team following credible information received through Assistant Collector Model Customs Collectorate Faisalabad, Asim Awan, raided an area near Bhakar bypass, Jhang.

During the raid, the customs officials recovered Ukrainian origin

whey powder on which they asked the owner namely Ghulam Muham-

the ASo team raided godowns of Mushtarka Zaindara goods which is situated on Jhang Road and seized art silk cloth

LTBA holds seminar on filing of tax returns

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ahore Tax Bar Association (LTBA) has held a seminar on Income Tax Returns here at the Tax House Lahore.

Lahore Tax Bar Association president Munsha Sukhera, general secretary

Ch Qamaruzz Zaman, vice president Arif Ijaz Hussain, former president Munir Hussain and

a large number of income tax practioners, chartered accountants and advocates participated

in the seminar. Former president Munir Hussain delivered his lecture explaining the solutions of hurdles in the Piling of tax returns while Farhan Shahzad, former general secretary distributed CDs comprising written problems of income

tax return Piling and their solutions.

General secretary Ch Qamaruz Zaman said that Federal Board of Revenue’s new software IRIS as according to him the system was creating confusion and putting the taxpayers on trouble.

mad to produce the documents showing the legal import of the items. But he remained fail; therefore, the ASO team confiscated the items under prevailing customs law and sent contravention report to the adjudication for further legal proceedings.

ASO team comprising Superintendent Zahid Raza Bukhari, Inspector Asghar Mehdi Naqvi, Shaukat Khan Mujuhid Abbas and others participated in the raid.

pRA seals 12 marriage halls on non-payment of gSt unjab Revenue Authority sealed twelve Marriage halls in different locations of the city.

These marriage halls were involved in sales tax evasion and did not have National Tax Numbers (NTN). Sources told Customs Today that on the directions of Punjab Revenue Authority Chairman Dr Raheel Sadique , a team comprising assistant director Kashif Nawaz Malik.

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FBR urged to impose special tax on imported steel LAHORE: The industrialists and representatives of the top body of country’s business community have asked Federal Board of Revenue to impose special cess on imported steel to balance the local industry.

The representatives of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and the Pakistan Steel Melters Association (PSMA), in a joint statement, have urged FBR to levy RD, sales tax or special cess on imported steel products.

FPCCI Vice President Hameed Akhtar Chadda said that balancing various segments of the steel industry is crucial to achieve a win-win situation.

Tuesday, September 1, 2015

Business

punjab govt approves Rs1.184b to modernise agri equipment

ISLAMABAD

LAHORE

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ith the aim to promote agriculture in the province, the Punjab government has approved Rs1.184 billion to equip farmers with modern farming techniques.

According to a senior official at the Agriculture Department, spending on agriculture mechanisation would pave way in changing the traditional farming prac-

cNg stations reopen in punjab LAHORE

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tices. The official told the stateowned news agency that the approval had also been granted for optimising watercourse conveyance efficiency through enhancing lining length with a cost of Rs9316.491 million.

The official said that the Punjab government would also provide laser land levellers to farmers or service providers on subsidised cost. For this purpose, an amount of Rs1,350 million has also been approved. Hesaid the approval of such a huge amount was a clear proof of farmers friendly policies of the government.

Meanwhile, The industrialists

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Tons. In July 2014 the cement exports from North were 295,000 tons and from South were 208,000 tons.

The spokesman said that the cement association has expressed reservations on various tax measures announced in federal budget 2015-16 that would hurt investors’ sentiments in general and will particularly burden cement consumers in the country. These issues in particular are related to 3% super tax, amendments introduced in Section 8 of the sales Tax Act, 1990 for input tax adjustment and increase in import duty on coal from 1% to 5%, he added.

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ederal Finance Minister Ishaq Dar has okayed the new trade policy’s draft for next three years and sent it to Prime Minister Nawaz Sharif for final approval.

The finance minister approved the draft of Strategic Trade Policy framework 2015-2018 presented by the Trade Ministry in Cabinet sub-Committee on Production and Exports’ meeting.

The committee was told that as soon as the PM approves the policy, it would be acted upon immediately. A statement issued by the Finance Ministry stated that the government is taking serious notice of decrease in exports.

Dar vowed that the government would take all necessary steps to lift up exports ratio. He further said that better supply of gas and power and cut in interest rates would help economic growth of the country.

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petrol price likely to be cut by Rs 6.14 to be fixed at Rs 70.62 per litre

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he Sui Northern Gas Pipelines Limited (SNGPL) has resumed the supply of gas to Compressed Natural Gas (CNG) stations in the province. According to a statement issued by the SNGPL, the gas will be available at CNG outlets in Lahore, Sheikhupura, Sahiwal, Multan, Gujranawala, Gujrat, Faisalabad, Sargodha, Islamabad, Rawalpindi and Bahawalpur regions, and will continue till further order.

have expressed their concern over increase in smuggling of cement, which is hampering the activity local industry.

The All Pakistan Cement Manufacturers Association spokesman, in a statement, said that the government should revamp its policies to boost exports. He said that exports declined mainly because of non-tariff barriers erected by the Indian authorities and influx of Iranian cement in Afghanistan.

According to experts, cement export sector continued to disappoint, as exports from North zone were 274,000 Tons while exports from South zone were 192,000

Dar okays new trade policy draft, sends to PM for final approval

ISLAMABAD

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he Oil and Gas Regulatory Authority (Ogra) has recommended a huge cut in petroleum products in wake of massive reduction in oil prices in international market.

Ogra has sent a summery to the Petroleum Ministry for Rs6.14 per litre cut in petrol prices, which will

make the price come down from Rs76.76 to Rs70.62 per litre. The high-speed diesel, which is being sold at Rs85.02 per litre, will be down to Rs77.2 per litre.

The light diesel oil after this reduction will be sold at Rs60.11 per litre, while the price of HOBC currently being sold at Rs82.79 will be available against Rs75.79 per litre.

Meanwhile, Out of 307 parties registered with the Election Commission of Pakistan (ECP), just 47 have Piled their annual assets details. The two largest parties, Pakistan Tehreek-e-Insaf (PTI) and Pak-

istan People’s Party (PPP), have also yet to submit their annual Pinancial statements to the ECP, revealed the ofPicial sources in the Commission.

On August 28, the ECP issued a reminder to political parties that the last date for Piling accounts is August 29, 2015, warning them that the “parties which have not submitted its statement of accounts will not be eligible to obtain an election symbol for contesting elections for parliament and provincial assemblies.” Meanwhile, the PTI has asked the ECP to give it 15 more days to Pile its statement.

WHT hurts banking sector; transactions down by 15% LAHORE

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he imposition of 0.3 per cent withholding tax has caused 10 to 15 per cent decline in banking transactions since the implementation of government’s decision. However, banking sector de-

posits witnessed 10 per cent growth to reach Rs9.1 trillion in the Pirst six months of the current calendar year 2015 compared to last Pive years’ average annual growth of 8 percent.

The 10 per cent growth was also registered on annual basis in June 2015 against 8 percent growth of the same period last year. Meanwhile, the deposits of private businesses declined by over 5 per cent on monthly basis in the very next month of July.

According to the latest Pigures released by the State Bank of Pakistan (SBP), deposits of private businesses stood at around Rs2.3 trillion at the end of July, showing a drop of Rs132 billion in banking system in the Pirst month of 2015-16.

The impact of increased taxation is also evident from ProPit before tax (PBT) numbers which grew by 39% YoY to Rs88bn in second quarter of 2015. Despite a sharp increase in provisioning expense (up by 4.1x YoY

to Rs10.1bn), strong growth in Net Interest Income (NII) and capital gains supported PBT of banks in 2Q2015. Banks continued to realize higher capital gains in 2Q2015 largely on PIBs taking benePit of declining interest rates. Capital gains during the quarter surged to Rs21.6b as against Rs8.8b in 2Q2014.

Meanwhile, In a bid to facilitate farmers and get a healthy crop, the Punjab government has started giving free of cost rust-free wheat seeds

in 926 villages of Muzaffargarh. According to the Agriculture Department, the project would benePit 410 farmers of tehsil Muzffargarh, 333 of tehsil Kot Addu, 88 of tehsil Jatoi and 95 farmers of tehsil Alipur. The department has advised the farmers to sow rust-free wheat seeds in coming wheat crop. A prime objective of the project was to provide rust-free wheat seeds across the province and to replace the affected seed varieties with rust-free wheat seeds.

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he Federal Board of Revenue (FBR) is considering taking disciplinary action against the ofPicials who are not conducting inquiries against their subordinates following the directions of the department.

Sources told that Pield formation highups concerned were when asked to kick off investigation against the ofPicials after the complaints received by department against them regarding corruption and misuse of powers, but they tried to put the inquiries on hold which is violation of ofPice discipline.

FBR Chairman Tariq Bajwa has been suggested to take disciplinary action against the high-ups who are not following the instructions in this regard, they added that after permission, those who are assigned duties for probing the matter will have to face the inquiry

Tuesday, September 1, 2015

against themselves.

They will be asked to present solid reason due to which they did not initiate inquiry against them.

Meanwhile, Federal Board of Revenue (FBR) Administration Member Shahid Hussain Jatoi has directed the inquiry ofPicials to pick up the

n tariq fBR chairma en e Bajwa has b e tak suggested to ion act disciplinary not ials against oďŹƒc uctions e instr following th rd and in this rega ction ing a avoiding tak niors ju against their

pace to complete the pending inquires against the customs ofPicers facing charges of graft and misuse of powers, it is learnt here.

Sources told that administration wing was investigating as many as 413 cases of corruption and other charges against the customs ofPicials. They added that ofPicers of BS 16-20 of different regions including Lahore, Karachi, Islamabad and others are under the clouds of investigations.

Showing dismay over the delay in inquiry reports, FBR member has urged all investigation ofPicers to complete the probe in the said cases so that department could take decision in this regard.

The sources also claimed that over 1,000 ofPicials of FBR facing the inquiry following different criminal charges, adding that in most of cases inquiry teams have sufPicient evidence but there is needed to be veriPied.

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Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDItoRIAL

trend of falling exports

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inance Minister Ishaq Dar has stressed the need for a comprehensive and better coordination between the monetary and fiscal policies of the country in the backdrop of a changing economic environment in the world.

Chairing a meeting of the members of the Monetary and Fiscal Policies Co-ordination Board, the minister said that the government is cognizant of the declining exports and is trying to take all possible measures to reverse the situation.

However, he emphasized that the areas of concern should have to be identified to arrest the trend of falling exports. Though the government believes that the macroeconomic indicators are showing positive growth, as the country has achieved 4.24 percent growth in fiscal year 2014-15, some drastic measures are required to minimize trade deficit.

According to the official figures, the country has registered the highest growth during the last fiscal year and the government has taken a number of measures in the budget for the promotion of export.

The current account deficit has narrowed to $159 million during July 2015-16 as compared to $820 million last year. The remittances sent by expatriate Pakistanis during the fiscal year 2014-15 have recorded a remarkable growth of 16 percent as compared to the last year and have reached $18.4 billion mark. The government also claims that foreign direct investment has started improving supplemented through investment in the Pak, China Economic Corridor.

The government has successfully contained inflation at 4.53 percent in 2014-15 against 8.62 percent the previous year. On another note, the foreign exchange reserve have been showing upward trend and have reached over $18 billion.

The SBP has kept the policy rate unchanged at 6.5 percent with reduction of 100 bps in ceiling rate to 7.0 percent in May. The country has been facing energy crisis for the last two decades and there is no letup in load shedding under the present regime.

However, the finance minister hopes that improvement in electricity and gas supply coupled with lower policy rate will bring improvement in productivity and growth.

As a matter of fact, Pakistan is still far from acquiring the status of a business friendly country and the cost of doing business is also increasing day by day. The government should understand that implementation of good policies through sick official machinery only invites troubles. If the government wants to improve exports, it will have to address the issues which are foiling the government attempts to bring economic prosperity in the country. The trouble is not in policies, but in the implementation process.

Aftershocks of world recession T

LAHORE

DR AftAB AfZAL

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he International Monetary Fund has appreciated the performance of the Nawaz Sharif government in maintenance of the Pinancial discipline during the last two and half years.

However, pressure on the Pakistani rupee and near-collapse condition of the stock market indicates that the economy is not immune to the world Pinancial crisis. The State Bank of Pakistan has rejected any prospects of the devaluation of the Pakistani rupee and Finance Minister Ishaq Dar has supported the amalgamation of three stock exchanges of the country into one as the Pakistan Stock Market to neu-

tralize the adverse effects of the global recession.

The crisis in the international markets is not yet over and rupee is still vulnerable, but it is hoped that the latest loan agreement with the Asian Development Bank will land the currency on the comfort zone.

However, the government needs to work overtime to protect the economy as the picture of the global recession is grim and danger is still looming large.

The currency brokers and ‘money lords’ are bent upon eroding the worth of the national currency and some exporters also want low exchange rates. Strong value of a currency is considered psychological barrier to assess the economy and once the barrier is crossed, the economy nosedives.

This happened at the end of the Musharraf era when rupee fell up to 100 a dollar from 60. The national currency is the merit and it should not be given in the hands of free market players. Various instances are there such as Iran and Zimbabwe where the currencies were Plattened to Platten the economy.

The government should devise a new mechanism to enhance tax net and generate revenues, but giving more powers to ofPicial machinery without its capacity building will end in Piasco.

Instead of going after corrupt ofPicials, a new mechanism should be adopted to curtail the chances of corruption. The prevailing policy of ‘one corrupt is out and another is in’ must be discouraged.

The tax to GDP ratio in Pakistan is

the lowest in the region, thanks to the presence of black-sheep in the ofPicial cadres. The public debt has reached $163 billion, almost three-fold since 2008, whereas 44 percent of the tax revenues are spent on debt servicing. There is need to introduce capacity-building programmes for the ofPicials and an awareness campaign for the business community to promote tax culture in the country.

An effective system of check and balance must be in place to stop misuse of authority. The factual situation is that unbridled authority with immunity of accountability breeds corruption. The tax authorities should have to develop trust in the business community and transparency in the mechanism of tax collection.

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FPCCI polls: Businessmen panel starts campaign KARACHI: Businessmen panel of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has started their election campaign. During their campaign they promised their supporters that after winning the elections they will give tough time to United Business Group. Sources told Customs Today that apart from starting their election campaign Businessmen Panel is reorganizing their panel. Now after restricting Sulan Chawla is the new patron-in-chief of Tariq Saeed grop while Zikriya Usman Sindh, Ghulam Ali Chairman KPK, Anjum Nisar chairman Punjab, and Naveed Jan Baloch are appointed from Balochistan. Businessmen Group’s Haji Ghulam Ali will contest elections against United Business Group’s Abdul Rauf Alam.

FBR urged to impose special tax on imported steel he industrialists and representatives of the top body of country’s business community have asked Federal Board of Revenue to impose special cess on imported steel to balance the local industry.

The representatives of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Pakistan Steel Melters Association (PSMA), in a joint statement, have urged FBR to levy regulatory duty, sales tax or special cess on imported steel products.

FPCCI Vice President Hameed Akhtar Chadda said that balancing various segments of the steel industry is crucial to achieve a win-win situation. By increasing taxation on imported products, FBR will be able to mop up the surpluses on imported products and gain maximum revenue while domestic units will also ramp up production.

SAARC Chamber Vice President Iftikhar Ali Malik said that with 5 million tons of steel capacity in the country, a 10 percent increase in industry capacity utilisation will result in an additional 500,000 tons of domestic steel output and revenue generation for FBR of over Rs 3 billion.

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fpccI for construction of kalabagh Dam he business community of the country has once again urged the government to construct Kalabagh Dam on priority basis.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Standing Committee on Law and Order Khawaja Khawar Rashid, in a statement, said that the dam Dam has the capacity to wipe out load-shedding and increase industrial output by $5-6 billion a year. Its contribution to value addition in agricultural output could go up to $10 billion a year, he said, adding that the dam has the potential to single-handedly wipe out rural poverty in Pakistan.

Rashid said that the load shedding would hamper the growth of manufacturing sector that was already facing a number of internal and external challenges.

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Tuesday September 01, 2015

Chambers

pak-tajik businessmen should promote bilateral trade: Maruon T

FAISALABAD

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he business community of Pakistan and Tajikistan should forge their direct contacts to promote trade between the two countries.

This was stated by MaruPjon Abdurahmonov, Consular Economic Section and Visa Section Head of Embassy of Tajikistan in Islamabad while addressing the business community in Faisalabad Chamber of Commerce and Industry (FCCI) here on Saturday. Maruf Jon said that Tajikistan was also a Muslim country that gained independence in 1991 and its 93 percent area was hilly with population equal to Faisalabad.

He termed Tajikistan as gateway to central Asian states for Pakistan.

He said that Pakistani Kinnow, garments, potatoes and mango juice were very popular in Tajikistan. Similarly, Tajikistan, rich in gas and electricity, was providing gas to Pakistan through CASA-1000.

He stressed the need to develop

direct contacts between Pak-Tajik business communities to fully capture the existing trade in addition to exploiting the available potentialities.

Maruf Jon Abdurahmonov said that businessmen and industrialists of Faisalabad who had specialized skills in textile sector should come forward and establish their textile units in Tajikistan. He further said that there were five free trade zones in Tajikistan with lu-

crative incentives. He said that Pakistani investors could import textile machinery without any taxes or duties while government had also allowed them to recruit 40 percent Pakistani labour for their units in Tajikistan.

Maruf said that up till 2007, the Pak-Tajik trade was restricted to only 100 million dollars which was now growing satisfactorily; however, there was still room to give a quantum

Pakistan Mango festival attracts huge gathering in Ankara

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ANKARA

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large number of Turks had a Pirsthand experience of the taste, juiciness and aroma of the famous Pakistani mango varieties as they converged at Pakistan House to feast on a wide spread of mango delights made out of freshly-arrived mangoes from Pakistan. Guests also enjoyed selected Pakistani music and specks of Pakistani cuisine.

Guests included key political Pigures, representatives of the food and beverage industry, food importers, diplomats and media representatives. BriePing the guests about the ‘King of Fruits,’ a popular name for Pakistani mangoes, Ambassador Sohail Mahmood said though Pakistani Mangoes are well-known in Turkey,

but are not available to mango-lovers on a regular basis. It is our endeavour to popularize the mangoes even more, and to facilitate their easier marketing in Turkey, he added.

“There are over 110 varieties of high quality mangoes in Pakistan and the country is the 5th largest producer and 6th largest exporter in the world,” informed Ambassador Sohail Mahmood.

Chairman of Pakistan-Turkey Cultural Association and Member of the Turkish Grand National Assembly Mr. Burhan Kayaturk was the chief guest on the occasion. In his speech Mr. Burhan Kayaturk referred to the special Plavor of Pakistani mangoes and said Pakistan may be the 5th largest producer of mangoes, but the Plavor of Pakistani mangoes is number one in the world. He said no one can forget the special aroma and Plavor of

Pakistani mangoes once it is tasted.

He encouraged Turkish entrepreneurs to consider importing Pakistani mangoes from the next season.

Embassy of Pakistan in Ankara in collaboration with the Trade Development Authority of Pakistan (TDAP) and Swissotel Ankara organized the event. Pakistan Mango Festival included a wide spread of mango delicacies, including mango ice cream, mango soufPlé, mango mousse, mango triPle, mango tart, mango pudding, mango salad, mango milkshake, mango lassi, and mango cake.

Pakistan exports the fruit to over 40 countries including the United States, Canada, many EU member countries, Middle East, and Far East while new markets for Pakistani mangoes are Japan, Korea, and Australia.

jump to the bilateral trade between the two countries. He said that Tajikistan had adopted a liberal visa policy, adding that three multiple business visas would be issued on the recommendation of FCCI. Replying to a question, he said that there was a renowned medical university in Tajikistan and many Pakistanis were also enrolled in it.

“We have acute dearth of pharmaceutical industry. Earlier most of medicines were imported from India and now 60 to 70 percent medicines are imported from Pakistan,” he added. He said that Tajikistan was holding various international exhibitions including Interfood, Dushanbe International Health Care Exhibition, Info Com Expo and Tajik Build from October 14 to 16. These exhibitions would be followed by Made in Pakistan Exhibition in Dushanbe, which was expected from 22nd to 24th of October.

Responding to another query about banking sector, he said that Pakistani businessmen were lucky as there was a well established branch of NBP in Tajikistan.

Business community flays Indian hostility at LoC he local business community has flayed the Indian aggression at Line of Control (LoC) and urged the government to raise the issue at world level effectively.

Lahore Chamber of Commerce & Industry (LCCI) President Ijaz A. Mumtaz, in a statement, said that irresponsible act of Indian government raising alarm bells for prospects of peace and tranquillity in otherwise volatile region. He said that the growing tension, caused by Indian provocative policy, is not a good sign as confrontation between two nuclear powers could lead mass destruction.”

Mumtaz said that brutal killing of innocent Pakistanis by the Indian Army is not tolerable. He feared dire consequences of unprovoked Indian shelling. LCCI President said urged the government to convey a clear message to the Indian government that Pakistan has the ability to give a strong answer of Indian aggression.

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Goa Customs arrests 2 in gold smuggling case Tuesday September 01, 2015

World

PANAJI: The air intelligence wing of the commissionerate of customs in Goa on Friday found three persons smuggling 3.5kg of gold worth 90 lakh. The trio was travelling to Bengaluru, on a Dubai-Bengaluru flight via Goa. The passengers were detained after landing in Bengaluru. Commissioner of customs, Goa, K Anpazhakan said that the three passengers boarded the flight in Dubai and were travelling to Bengaluru. When the flight landed at Goa international airport, Dabolim, at around 4.16am on Friday, the three passengers were found in possession of gold during a random search by customs officers. The gold was in form of biscuits and gold ornaments, he said.

Russian customs proposes to criminalise illegal food imports

China, EEU agree to exchange customs info

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BEIJING

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liminating tomatoes conPiscated at the Russian-Belarusian border, at a consumer waste Pield near the village of Gusin in the Smolensk Region.

Russia’s Federal Customs Service proposes to criminalize illegal food imports from sanctioned countries. If approved, the motion would put embargoed foods on the same list with weapons of mass destruction and endangered animals. The authors of the draft posted on the Russian government’s website on Thursday state that the current administrative responsibility for food contraband is insufPicient to stop those who benePit from importing banned goods. Instead of Pines between 100,000 and 300,000 rubles ($1540 - $4615) and destruction of the seized contraband, they want to punish such attempts with Pines up to 1 million rubles ($15,400) and prison sentences between three

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and seven years. That could be raised to between seven and 12 years if contraband is smuggled by an organized ring. The same article of criminal code is applied to those who attempt to smuggle weapons of mass destruction, nuclear materials, poisonous substances and explosives, Pirearms and ammunition, large quantities of strategically important goods and objects of cultural value, as well as endangered wild animals into Russia.

The bill is put online for public discussion and if passed it would come

into force in March 2016.

In early August, Russia introduced obligatory destruction of all food products imported on its territory in violation of the food embargo. The ruling doesn’t apply to food items brought to Russia by individuals for personal use if they are accompanied by proper paperwork. According to Russian state watchdog Rospotrebnadzor, 500 tons of seized contraband foodstuffs were destroyed in in just one week after starting to use the new procedure.

France scrap imports decline in May

he most recently released trade data indicates that scrap imports by France during the month of May this year plunged heavily upon comparison with the previous year.

France imported 1.13 million tons of scrap during May ‘15. This is 32.1% down when compared with the imports during the same month a year before.

The scrap imports by the country had totaled 1.664 million tons

during May ‘14. The average scrap import price stood at $52.6 per ton, falling considerably by almost 47% when compared with the previous year.

The cumulative scrap imports by the country during the initial five months of the year totaled 6.334 million tons.

The scrap imports were down by 14.9% when compared with imports during the corresponding five-month period in 2014.

Brazil was the largest scrap exporter to France during this period.

France imported 2.66 million tons of scrap during this period, accounting for almost 42% of scrap imports by the country.

The yearly scrap imports by France are estimated to total around 15.2 million tons in 2015.The yearly scrap imports by France are estimated to total around 15.2 million tons in 2015.

ountries of the Eurasian Economic Union and China will exchange customs information with regard to goods in transit.

The agreement was reached in the course of the third round of talks in Irkutsk on the conclusion of an agreement on exchange of information about goods and vehicles moved across the customs border of the EEU member states and the People's Republic of China, BelTA learned from the press service of the Eurasian Economic Commission.

"We have agreed with our Chinese counterparts to exchange the information with regard to goods that transit from the People's Republic of China

through the Member States of the Eurasian Economic Union to third countries and, similarly, with regard to goods that transit from the countries of the Eurasian Economic Union through China to third countries,” EEC Member of the Board (Minister) on Customs Cooperation Vladimir Goshin said after the meeting. “This information will be used for customs purposes by the customs authorities of the EEU member states and China,” he added.

The Minister noted that such regular exchange of information, comparing the data and identifying the reasons for differences will increase the degree of trust between the EEU Member States of and China. They customs authorities will be able to detect and suppress the breaches of the customs legislation of the EEU and the PRC more efPiciently.

uS customs seizes 1,200 fake gucci, 1,195 Louis Vuitton handbags

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housands of counterfeit designer handbags have been uncovered by federal ofPicers in a shipping container at Miami’s seaport. Customs and Border Protection ofPicials say a recent review conPirmed there were 1,200 fake Gucci handbags and 1,195 Louis Vuitton handbags in the container. The bags were initially seized Aug. 19 in a shipment from China.

Authorities say the handbags are worth more than $1 million if sold as legitimate. Investigators began examining cartons containing the handbags after noting that they were not declared on any import documents.

The shipment included 825 other cartons of clothes, shoes and similar apparel. Last year CBP seized more than 23,000 counterfeit items nationally worth about $1.2 billion.

Oman Customs seizes 132 cartons of contraband cigarettes

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ustoms officials at the Wadi Al Jizi border post foiled an attempt to smuggle illegal cigarettes into the Sultanate.

Officers found 132 cartons of

cigarettes hidden in different parts of the vehicle.

The driver was detained and police are proceeding with investigations.

philippines customs to refund taxes on filipina champion’s belt

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MANILA

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he Bureau of Customs (BOC) says it had “no idea” that the championship belt it charged duties and taxes to belonged to a Filipina boxer and has moved to issue a refund.

A BOC spokesperson says they

thought Women’s International Boxing Association (WIBA) junior Plyweight title winner Jujeath Nagaowa was not the owner of the belt, making it not exempted from import duties.

“The package was not consigned to her, but to a certain Brico Santig,” Deputy Commissioner for Revenue Collection and Monitoring Group (RCMG) Art Lachica said, referring to Nagaowa’s manager Santig.

Lachica, who reportedly talked to the Customs personnel who taxed the belt, explained that another person, identiPied as former boxer Jayvee Alipio, claimed the championship belt instead of Nagaowa when it was shipped to her from Macau by WIBA. “Hence, the Customs examiner assessed the belt as collection and not as a prize,” he said. Nagaowa won the junior Plyweight title belt against Chi-

nese Pighter Lou Yu Jie by unanimous decision last June 8. Her championship belt arrived at the Ninoy Aquino International Airport (NAIA) recently, but she felt “hurt” upon learning it was taxed. Based on the BOC computation, the belt had a value of P20,147.77, for which the customs duty was P3,027.13 and the valued added tax was P2,782.

Unaware that Nagaowa won the

belt in a boxing match abroad, Customs used the tariff heading “memorabilia” on the tax imposed on her belt. Nagaowa had to settle the amount with the help of her friends.

“The (BOC) employee who processed it had no idea that the belt was won in a bout so it had to undergo the usual process. It was a normal thing for the employee to assess the tax,” Lachica said.

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DP World eyeing Iran port opportunities DUBAI: DP World is considering investments on Iran’s north and south coasts, according to a flurry of recent news reoprts following the visit of DP World Chairman, Sultan bin Sulayem, to Iran in early July. Iran's Press TV said bin Sulayem visited Bandar Anzali on the Caspian Sea, Chabahar on the Sea of Oman, and Qeshm Island, near Bandar Abbas, in the Persian Gulf, two weeks before the landmark nuclear accord was struck on 14 July. “We are very interested in the Iranian market and we believe it has great potential,” he said. DP World is eyeing ways in which its flagship port, Jebel Ali, can benefit from the overland route to Asia via Iran. “Iran has a good land bridge of rail that will connect the Silk Route from China to Europe,” he was quoted as saying.

Teesside's port sees arrival of new shipping service from Japan eesside's port will see the arrival of a new roll-on roll-off (Ro-Ro) shipping service from Japan, starting next month. PD Ports is set to welcome global shipping line K-Line as the firm brings in the largest ships of their kind ever to arrive into Teesport.

The new route will use K-Line’s newly announced 7500-unit Ro-Ro vessels to transport cargo from the Port of TokuyamaKudamatsu, Japan, to the North-east. The vessels, which are just under 200 metres long, will allow exporters of large, high value equipment and materials for major projects, to connect directly from Teesport with K-Line’s global network.

Frans Calje, PD Ports’ managing director Unitised and Portcentric Logistics, said: “We are pleased to announce the arrival of this new service to Teesport, which is already one of the largest and best connected ports in the UK. “This additional service further strengthens PD Ports’ position as a leading player in the UK ports sector and highlights its flexibility and adaptability within a changing market.” A K-Line spokesman said: “We are pleased to announce this new service to Teesport.

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Ports & Shipping

Manila port current congestion level stands at about 80%

Canadian ports on East Coast to increase maritime trade TORONTO

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lawmaker yon urged port stakeholders to prepare for huge volumes of cargoes expected to arrive in the last four months of the year to prevent a repeat of the congestion that sent both the government and private sector reeling from delays and huge losses in their respective operations.

“Now that we have learned our lesson from last year, we must not let our guard down. This early, we must ensure that congestion will not hamper port operation during the coming ‘ber’ months,” Sen. Paolo Benigno “Bam” Aquino IV said in a statement issued Thursday. Aquino, chair of the Senate committee on Trade, Commerce and Entrepreneurship, said while port operations have returned to normal, the heavy volume of containers ex-

pected to arrive between September and December may result in another port congestion of 2014 occurring anew.

Utilization rate at the Manila port currently stands at about 70 to 80 percent. The waiting time for trucks has also signiPicantly improved. Cargo ships can also now load or unload cargoes in a matter of hours, instead of days as seen at the height of the bottleneck last year.

Last year’s port mess saw production delays, work stoppages for some industries, higher shipping

and trucking charges, as well as losses and foregone revenues and investments.

Since then, however, the government has implemented new measures that helped resolve the port crisis.

In a related development, Aquino noted that the passage of the Foreign Ships Co-Loading Act or Republic Act No. 10688 will be able to help relieve congestion at the country’s major ports. The new law allows foreign liners to transport import and export cargo from one port to another.

Netherlands to develop Paira, Chittagong ports in B’desh

alls to move car imports away from the Ports of Auckland have been backed by Ngati Whatua rununga.

The iwi's spokesman Russell Kemp said other sites needed to be considered to keep the Waitemata protected. Kemp said one one possible solution was to shift car imports to Northport in Whangarei.

He urged Northport and the Port of Tauranga to work together with the Ports of Auckland to find a better solution for the future of car imports. It followed comments from Ports of Tauranga chief executive Mark Cairns who said storing imported cars on Bledisloe Wharf may not be the best economic use of port land in Auckland.

Kemp said Northport "could well be best suited to handle the import of cars".

But for that to happen, it would require an integrated approach to developing road and rail infrastructure between Auckland and Whangarei involving central government, local government, the transport sector and private investment, he said.

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AMSTERDAM

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he Netherlands government has expressed interest in the development of Paira and Chittagong ports.

Ministry of Shipping ofPicials report that a Danish-Dutch consortium has been formed to seek to help fund and construct the pro-

midst an uncertain global environment, Canadian ports on the East Coast are pursuing a capacity expansion strategy to increase business and to potentially offer alternatives, in some cases, to lingering congestion issues at US ports on the eastern seaboard as well as on the West Coast.

Ports relying most on general cargo, notably Montreal and Halifax, are enjoying favourable trends in container activity. On the other hand, the recent plunge in commodity prices and fears of a deeper slowdown in China, the world’s primary driver of commodity demand, have hammered such bulk ports as Quebec and Sept-Iles on the St. Lawrence River.

In related developments, federal support for several large port projects was announced in recent weeks by a Conservative government seeking a return to power in a national election being held on October 19.

Although the Canadian economy showed virtually no growth in the first half of this year, partly due to the domino effect of depressed oil prices, the outlook was improving as fall approached and exports were showing a marked rebound thanks to robust demand from the United States and thanks to a weak Canadian dollar (hovering around 76 US cents) spurring sales abroad.

Montreal has Wind in its Sails Among the leading Canadian ports on the East Coast, Montreal clearly has the wind in its sails. Ranked the second largest Canadian port after Port Metro Vancouver, Montreal’s strong performance in 2014 has carried over into 2015.

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Auckland's port shouldn't be a car yard: Ngati whatua

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Tuesday September 01, 2015

posed Paira deep seaport in Patuakhali district. This is just one of over 10 expressions of interest, including from companies in China and the UAE, It is welcome to see international expertise and funding on offer to support plans to develop our port sector. A seven-member committee of the Paira Port Authority has reportedly short-listed four companies and forwarded them for selection,

but as yet no Pirm decision has been made. It is vital that the government and Board of Investment priotitise consideration and decision-making on this matter, to aid progress on building a deep-sea port.

Bangladesh sorely needs new deep-sea port facilities to develop the economy. Increasing the capacity and efPiciency of our ports is essential to meet the growing needs of our own exporters.

Ships set to load coal cargoes at port of Newcastle

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CANBERRA

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wenty one ships are set to load coal export cargoes at Australia's port of Newcastle this week, down from 34 a week ago and the lowest weekly number for 13 months, the Port Authority of New South Wales said Monday.

"There are 21 vessels with a noti-

Pied arrival time allocated and in transit," said the port authority in a report at 7 am Sydney time (2100 GMT). The last time Newcastle's shipping queue dipped below 20 ships was in mid-August 2014 at eight, although it quickly recovered to 40 by month's end.

An additional 13 ships were waiting off the port at anchor for a loading berth in the port this week, and another eight were berthed and taking on coal cargoes at Newcastle port, ac-

cording to the report. Over the seven days to 7 am Sydney time Monday, 34 ships entered Newcastle port and loaded coal exports at its three coal terminals, the port authority said in the report. Each ship waited an average of six days to be allocated a berthing slot, it added. Newcastle port's vessel queue is a good indicator of marginal demand for coal exports as customers send more ships when they are short of supply. A major cus-

tomer of Newcastle coal exports is Japan, and its power utilities have been less active as buyers in the spot market over the past month, according to market sources. The vessel queue for the two coal terminals at Newcastle port operated by Port Waratah Coal Services slumped to levels last seen in April, according to a separate report Sunday by the logistics coordinator for the Hunter Valley coal Pield supply chain for exports.

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HK Customs investigates fake-drug bust HONG KONG: Hong Kong customs are following up on a mainland operation that busted an unlicensed Nanjing factory producing fakes of a popular “magic” Chinese drug for those suffering from strokes. The drug was made for distribution in Guangdong and Hong Kong with police estimating sales to have topped 2.78 million yuan (HK$3.34 million). It was not immediately clear if any of the fake drugs were circulating in Hong Kong. Nanjing police went into action after receiving a report of machinery noises coming from an abandoned factory in the Jiangning district.

Tuesday, September 1, 2015

CUSTOMS BULLETIN

Hyderabad ASO seizes 60,000 litres of diesel, oil tanker worth Rs 12 million HYDERABAD

ASLAM QuReShI

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he Customs Anti-Smuggling Organisation (ASO) conPiscated 60,000 litres of smuggled Iranian diesel valued at Rs 3.6 million and an oil tanker being used for the transportation of diesel worth Rs 8.6 million.

As per details, Additional Collector Model Customs Collectorate (MCC) Hyderabad, Omer shaPique, received information regarding the smuggling of Iranian diesel. Following the information, the additional collector formed a team comprising Inspector Khair Mohammad Pathan, ShaPi Jamali, Waqar Ahmed Baig and other to foil the smuggling bid.

ASO team intercepted the oil tanker bearing Registration No. TLE-414 near superhighway bypass, Hyderabad and recovered smuggled diesel which was being transported from Hub to interior Sindh.

The ASO team confiscated the diesel, besides impounding the truck under the prevailing customs law. The case has been registered against the accused, while further investigation is underway in this regard.

Afghan Transit Trade: Reverse commercial cargo to be on WeBOC KARACHI

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AftAB chANNA

www.customsbulletin.com he Pakistan Customs is bringing the Afghan Transit reverse-commercial cargo on the Web-based One Customs (WeBOC) to ensure transparency in the entire process. Besides, the WeBOC system would help track the containers by just entering the specified codes.

The officials at the Directorate of Reforms and Automation told

Customs Today that the process had also been completed. However, the testing was underway with the system. “The automation of the system would not only ensure the transparency but would facilitate the movement of the cargo,” sources added.

Sources said that the introduction of the WeBOC would stop the large scale corruption in the customs and it is hoped that each and everything would be automated very soon.

Meanwhile, The Pakistan Customs has decided to install trackers on the containers of the

United States reverse cargo aimed at ensuring that the containers and goods do not get pilfered on the way to Afghanistan.

The sources told Customs Today that the Customs would soon start installing chips on the containers of the US reverse cargo in a view to avoid mega scams that happened in the past.

With the installation of the trackers, the movement of the containers could easily be monitored inside the ports vicinity and all the way from Karachi to Afghanistan.

The customs officials would

check the trackers at ports and then the checking process would continue at Hyderabad dry port, then Quetta and Torkham border, sources added.

Meanwhile, Traders of Karachi have rejected levy of withholding tax on banking transactions. They warned government to withdraw this unjustified tax immediately otherwise they will observe a shutter-down strike.

Sources told Customs Today that traders are using prize bonds for business dealings instead of transferring cash

Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi

through banking channels. This is the reason that prize bonds of Rs 40,000 are not available in open market.

Ghulam Hussain, a trader of Bolton Market Karachi, said that 90 percent traders and industrialists are not using banking channels for transactions. Talking to Customs Today, vice president All Pakistan Tajir Ittehad Atiq Meer said that if government fails to withdraw withholding tax. the traders will observe a complete shutter down strike all over the country for indefinite period.