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pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 182

Karachi, Wed September 16, 2015

ISLAMABAD

M FAIZAN

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ollowing the audit policy for tax year 2015, random computer ballots were held on 14th September, 2015 for selection of cases for audit for Tax Year 2014 and Tax Period 1st July, 2013 to 30th June, 2014, in respect of Income Tax, Sales Tax &

Price Rs. 14.00

FED at FBR House, Islamabad. Federal Minister for Finance Mr. Muhammad Ishaq Dar, was the chief guest. Representatives of Chambers of Commerce and Industry, Accounting Bodies, Tax Bars and FBR officers attended the ballot ceremony. Minister for Finance and Chairman, FBR addressed the audience on the occasion. In his address, the Minister for Finance highlighted the economic and tax policies of the government.

Multan Customs Intelligence confiscates tyres, alloy rims worth Rs10m

Kohat Customs needs more work force to realise potentials: A Collector Najeeb

Promotion of tax culture must for economic stability: Dar

Customs’ Licencing Committee refuses to renew TPL Trakker’s licence

Turkey Customs minister confirms Zanjani, Zarrab corruption charges

Customs intelligence Multan has confiscated a container comprising 999 | See pAge 02 |

The MCC Peshawar’s Kohat region could realise more revenue than | See pAge 03 |

In line with the audit policy for tax year 2015, random computer ballots | See pAge 04 |

Pakistan Customs’Licencing Committee has refused to renew the licence learnt. | See pAge 12 |

In response to an inquiry submitted to Parliament by main opposition Republican | See pAge 09 |

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Mianwali ASO seizes Toyota Land Cruiser Wednesday, September 16, 2015

National

FAISALABAD: The Anti-Smuggling Organization (ASO) Mianwali has seized a Toyota Land Cruiser. The market value of seized vehicle is Rs 2.8 million while its CIF value is Rs 900,000. Sources told Customs Today that ASO Mianwali official Muhammad Asim Awan received a credible information regarding smuggling of above said vehicle.

After receiving information he immediately constituted a raiding team comprising Azhar Hussain Jafri, Nazir Hussain Jafri, (inspectors), Muhammad Saifullah, Muhammad Ghulam Mohyuddin, Faiz Ahmed, Sher Ahmed, Saeed Rasool , Muhammad Yousaf (sepoys).

Multan customs Intelligence seizes tyres, alloy rims worth rs 10m

collector tauseef transfers 17 officials of Faisalabad customs FAISALABAD

NAeeM SheIkh

MULTAN

SAJID BAShIr

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ustoms intelligence and investigation Multan has confiscated a container comprising 999 smuggled tyres and 618 alloy rims in a coordinated effort with Dera Ghazi Khan City police on Quetta- Multan road in DG Khan on the weekend night.

The confiscated items are worth Rs 10 million.

As per details, DG khan police intercepted a container on Quetta road, and informed the customs officials who reached the place and thoroughly examined it. On examination, 800 light transport vehicle (LTV) and 199 heavy transport vehicle (HTV) tyres, besides this 618 alloy rims were found loaded in the container.

The ofXicials conXiscated the container and brought it to the Multan ofXice for further investigation. It is suspected that the tyres and alloy rims have been smuggled from Afghanistan or Iran, and now they have been shifting from Quetta to Lahore.The ofXicials are thoroughly investigating the case.

The Customs Intelligence team was consisted of Superintendent Fareed-u-Deen Masood), Deputy Superintendent Malik Nasir, Senior Inspector Sheikh Arshad, Inspector Javed Bhatti and Inspector Muham-

odel Customs Collectorate Faisalabad Collector Tausif Ahmed Qureshi has reshuffled as many as 17 officials, including inspectors, sepoys and clerks.

According to the details, Inspector Muhammad Mansha has been posted from Faisalabad airport to Anti-Smuggling Organisation (ASO) Sargodha, while Inspector Muhammad Ramzan has been shifted from import section to ASO Faisalabad.

Inspector Muhammad Faizi Raza has been transferred to airport from ASO Mianwali, Inspector Zulfiqar Ali from ASO Faisalabad to import examination; however, Inspector Rana Afzal has been assigned additional duties here at the post office. Furthermore, Inspectors Khalid Ashraf Noor and Asif Hussain have been assigned task at MCD Branch by shifting them from import examination.

Inspector Omer Bhati has been posted from airport to ASO Sara-e-Mohajir and Inspector Abdul Nasir from ASO Faisalabad to airport. Meanwhile, UDC Muhammad Nazim has been transferred from Recovery Branch to MCD branch, LDC Roshan Sattar from airport to ASO Sara-e-Mohajir and Driver Muhammad Afzaal Hussain posted from headquarters to ASO Faisalabad.

mad Saddiq. The officials have taken the smuggled items into their custody under sections 2(k)(k)17, 126 and 171.

Meanwhile, Customs Intelligence and Investigation Multan seized smuggled Mazda mini truck during an action. According to details, Customs Intelligence and Investigation

Multan Range OfXice received information that a Mazda mini truck bearing registration LRT/3821 has entered Multan. The Customs staff coordinated each other and intercepted the truck near Khanewal bypass.

Driver Muhammad Alam of the Mazda truck was asked to present

the original documents to prove its legal identity. During veriXication of the documents and physical examination of the Mazda truck, it found to be a smuggled one.

The Customs staff seized the truck along with Cabin Mazda Titan accessories on non-payment of customs duty.

Court tells ‘smuggler’ to appear within 10 days to avoid legal action LAHORE

M IMrAN MehAr

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Customs Court ordered an accused, Muhammad Khawar, son of Abdul Khaliq, who is allegedly involved in smuggling, to appear in the court within 10 days; otherwise he

will be declared a proclaimed offender. Sources told Customs Today that Muhammad Khawar is a suspect in a smuggling case registered under the Customs Act, 1969.

The Faisalabad Customs had registered the case against him under Sections 156, 45 and 157 of the Pakistan Penal Code, as he was allegedly found involved in smuggling of hardware items.

Now, the court has di-

rected him to present himself in the court within 10 days after the issuance of the notice; otherwise he will be declared a proclaimed offender.

Meanwhile, In the Special Court of Customs Taxation and Anti-Smuggling, 12 different cases were scheduled for hearing on Monday. All the cases were adjourned without any proceeding because no lawyer or party appeared in the court due to absence of a permanent

judge as well as the duty judge.

The hearing of pre-arrest bail pleas of four accused was also adjourned until the next date.

Cases scheduled for hearing on Monday including those of tax evasion, smuggling and narcotics. Pre-arrest bail pleas of Sheikh Manzoor Hussain, Shahzad, Shahid Yaqub and Ahmad Nawaz were also scheduled in the Customs Court, but the court adjourned these cases.

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FBR to issue notices to 130,000 tax defaulters KARACHI: Federal Board of Revenue (FBR) decided to send notices to over 130,000 tax defaulters of 2013-14, from September 15,2015. According to the sources the above said defaulters are registered taxpayers but they avoiding to submit their tax returns of the year 2013-14. All regional tax offices already completed lists of defaulters. The notices are being prepared in accordance with income tax ordinance 114, and they will be given a grace period of 45 days to submit their tax returns, otherwise FBR will take stern action against these defaulters. The regional tax offices will also confirm the actual income of taxpayers during the grace period of 45 days.

rto-I seizes record of Zara Fashion Designing on tax evasion HYDERABAD

KOHAT

SAJID IMtIAZ

he Federal Board of Revenue (FBR) Regional Tax Office-I (RTO-I) Lahore has seized the record of Zara Fashion Designing firm following the charges of tax evasion.

Source said that the company was not paying sales tax despite issuance of many notices to it, therefore, the officials of RTO-I have seized all the record to check the income and to evaluate the total tax. RTO-I Zone III Commissioner Sadia Sadaf Gillani has taken actions against the Zara Fashion Designing firm. The officials will also make audit of the record in order to calculate the total tax evasion by the company so far.

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Customs Court awards post-arrest bail to alleged currency smuggler KARACHI

MuhAMMAD YouSAF www.customsbulletin.com

he Special Court of Customs Taxation and Anti-Smuggling on Monday granted post-arrest bail to a suspect in a currency smuggling case.

Judge Syed Faiz Rasool Rashdi directed suspect Ghulam Mehdi Karani to deposit surety bond of Rs 200,000.

According to the prosecution, Karani was caught with 112,500 Saudi Riyals at the Jinnah International Airport on August 29, 2015. The accused was about to fly to Dubai with huge sum of money without declaring it.

Subsequently, he was taken into custody and an FIR was registered against him under the customs laws.

Advocate Syed Shabeer H Shah moved the bail application on behalf of the accused, requesting the court to grant his client bail as it had already given such concession in several similar cases.

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National

kohat customs needs more workforce to realise potentials: Ac Najeeb

MuhAMMAD NAwAZ www.customsbulletin.com

Wednesday September 16, 2015

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he Model Customs Collectorate Peshawar’s Kohat region could realise more revenue than the previous year, besides curbing the smuggling activities at large if it was given more work force and equipment.

This was stated by Assistant Collector Najeeb Arjumand in an interview with Customs Today, saying that “Kohat Customs is the largest division of the country having customs check-posts in settled areas of Khyber Pakhtunkhwa and the Federally Administrated Tribal Areas (FATA); therefore, we require as many as 20 inspectors and 200 sepoys to meet the annual targets and enforcement of customs laws.”

Telling about the performance during the Xiscal year 2014-15, he said that Rs 18.35 million were collected as customs duty, showing 162 percent growth over the corresponding year 2013-14.

It also impounded 62 non-duty paid vehicles worth Rs 105 million in different anti-smuggling activities, Arjumand said, adding that smuggling of vehicles through Miran Shah has been suspended by smugglers owing to Zarb-e-Azb operation against militants.

He said that customs ofXicials and taxpayers have good working relations due to which the ratio of cases in the Federal Tax Ombudsman

(FTO) ofXice is at zero level. He added, “We are trying to address the issues of taxpayers and traders on priority basis because we are here to serve them.”

The assistant collector said that Tax Facilitation Centre was being established at Parachinar (headquarters of Kurram Agency) where assistant collector and deputy collector will spend four to Xive days a month to address the issues and

kohat customs also impounded 62 non-duty paid vehicles worth rs 105m in different anti-smuggling activities, Arjumand said

FBR office starts receiving tax returns

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n order to facilitate taxpayers of income/sales tax at their doorsteps, Federal Board of Revenue has refurbished its existing office buildings situated at Gulshan-e-Iqbal and Gulistan-eJohar, Karachi.

To relocate Regional Tax Office-III Karachi and its allied Commissionerates, refurbishment was started on January 01,

2015 and completed on September 02, 2015. Ahmed Saeed, Chief Commissioner Inland Revenue, accomplished refurbishment and shifting of RTO-III offices successfully.

FBR Chairman Tariq Bajwa has also accorded approval for opening National Bank of Pakistan branch at Gulistan-e-Johar, Karachi which will facilitate the taxpayers in deposit of taxes through one-window operation at

the request of Chief Commissioner Ahmed Saeed.

Tariq Bajwa has appreciated the efforts of officers and staff, specially Shahid Hussain Jatoi, Member FBR and Ahmed Saeed, Chief Commissioner (IR) Karachi in taking keen interest and speedily completing refurbishment and shifting of all offices in time to receive the annual income tax returns for tax year 2015 whose last date is September30.

raise awareness among people.

Saying that concessionary exports were not allowed through Kohat Customs and exporters like Lucky Cement and Kohat Cement have to export their consignments from Torkham border, despite using the inexpensive and safer route– Hangu-Parachinar, Arjumand said that Federal Board of Revenue (FBR) has been asked to allow concessionary exports from Kohat.

tribunal reserves verdict on petitions linked to FBr ut of 12, the Federal Services Tribunal (FST) has reserved decisions in two cases, carrying complaints regarding ‘fixation of seniority’and ‘special allowance equal to 100 percent’filed by Federal Board of Revenue employees. The FST bench comprising of Dr Nazir Saeed and Javed Iqbal Kasi hear the cases and reserved decision with completion of arguments by both plaintiffs and respondent (FBR).

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2,300 acres in Gwadar leased to China for 43 years Wednesday, September 16, 2015

Business

QUETTA: For development of first economic zone in Gawadar, Pakistan has leased 2,300 acres land for 43 years to China, a state-owned Chinese news channel report on Monday. According to CCTV, China has provided financial and technical support in the construction of the deep-sea port since March, 2002 at Pakistan’s request. The infrastructure construction was completed in February.

The SEZ and the port is part of the China-Pakistan Economic Corridor that aims to connect Gwadar to China’s Xinjiang via a transportation network and improve economic cooperation between the two countries.

kSe 100-index continues its losing streak, sheds 193pts

level.

The market’s low and high levels were 33,107.28 and 33417.63 points, respectively. The total volume traded in the market was 13,353,280 shares.

The KSE 100-index had lost 304.63 points or 0.90 percent to reach 33,368.09 points and volume of 59,672,890 shares on Monday.

Volatility continued as fears of continued selling by foreign investors, further depreciation of rupee, volatile oil prices, sector-specific concerns, and expectations of selling by local CPPI funds continued to deter fresh buying in the market.

KARACHI

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he Karachi Stock Exchange 100-index lost 193.27 points or 0.58 percent to reach 33,191.41 points and volume of 73,353,280 shares on Tuesday.

Till midday, the KSE had shed 118.31 points to reach 33,266 points level, while bearish trend was also witnessed in early trading as KSE-100 index shed 220.28 points to drop to 33,164.45 points

406 new companies registered in August ISLAMABAD

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he registration of new companies have increased by 33 per cent as the Securities and Exchange Commission of Pakistan (SECP) registered 406 new firms during the month of August 2015.

The SECP, in a statement, said that out of 406 new registrations, around 92 per cent companies have been registered as private limited companies, while around 5 percent companies were registered as single member companies.

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Nawaz inaugurates pak-china Friendship tunnel GILGIT

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rime Minister Nawaz Sharif has inaugurated Attabad Tunnel, known as Pak-China Friendship Tunnel, on Karakorum Highway and realignment of the highway parts of which were submerged due to landsliding in January 2010.

Addressing the ceremony, Nawaz said Gilgit-Baltistan is a vital link in the China Pakistan Economic Corri-

dor and would beneXit most from this mega project which would particularly increase the tourist inXlux.

The seven-kilometre-long Xive tunnels are part of the 24km long portion of the Karakorum Highway.

Two bridges and 78 small bridges have also been constructed on the rebuilt section of the highway, Radio Pakistan reported.

The tunnels have been constructed by the National Highway Authority (NHA) in collaboration with the China Road and Bridge Corporation to restore part of the road which had submerged under the At-

tabad Lake. The project has been completed in a span of three years and two months.

Nawaz urged the Gilgit Baltistan government to maintain high level of transparency and integrity in the expenditure of public money.

The premier also stressed to rectify the mistakes of the past and make corrections where necessary.

The GB chief minister informed the prime minister that this summer more than 600,000 tourists visited Gilgit-Baltistan which shows upward economic activity in the region.

take action against human trafficking, Nisar directs FIA ISLAMABAD

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aking action against human trafficking, Interior Minister Ch Nisar Ali Khan has directed Federal Investigation Agency (FIA) to start crackdown against such elements with the help of law-enforcing agencies, including police and Rangers. The minister issued these directives, while addressing a meeting to tackle human trafficking in the country. He said that action must be taken against all those involved in sending Pakistanis abroad illegally. Nisar said those involved in trafficking, bonded labour, selling human beings and violating human rights were earning bad name for the country and exploiting innocent and needy people. He said some times precious lives are lost in an attempt to sending people abroad illegally that was a matter of great concern. Such elements, the minister said, deserve no leniency and strict action should be taken against them. The minister directed FIA to chalk out a comprehensive strategy that could yield noticeable results within one month. This meeting was attended among others by Secretary Interior, Director General FIA and senior officers of FIA and State Bank of Pakistan.

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Promotion of tax culture must for economic stability: Dar ISLAMABAD

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n line with the audit policy for tax year 2015, random computer ballots were held here to select cases for audit for tax year 2014 and tax period 1st July, 2013 to 30th June, 2014, in respect of

income tax, sales tax and federal excise duty. The balloting was held at FBR House.

Federal Minister for Finance Muhammad Ishaq Dar chaired the ceremony. Special Assistant to Prime Minister on Revenue, Haroon Akhtar was also present.

In his address on the occasion, the Finance Minister highlighted the economic and tax policies of the government. He said promotion of tax culture in letter and

spirit was necessary to ensure overall economic development in the country. He said the government would facilitate tax payers in every possible manner and the FBR was taking steps to this end.

He said we would always prefer moral suasion to all other ways and means for encouraging people to contribute to the national exchequer. The Minister said despite all odds, within last two years, the FBR achieved 33% growth in rev-

enue collection as from over Rs 1900 billion in 2013, it had reached Rs. 2590 billion by the end 2014-15. He praised the Chairman FBR and officials and called upon them to make all out efforts to achieve the revenue target set for FY 2015-16.

Later on random computer ballots were conducted in respect of six categories i.e. corporate cases of income tax, sales tax and federal excise duty and non-corporate case

of income tax, sales tax and federal excise duty. The Finance Minister initiated the ballot process by pressing the computer button.

Representatives of chambers of commerce and industry and tax bars also participated in the balloting process.

Around 75,871 persons selected for audit in respect of six categories. national tax numbers of cases selected for audit are displayed on FBR’s website.

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KARACHI AFtAB chANNA www.customsbulletin.com

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he Customs Post Clearance Audit PCA-Karachi has detected tax evasion to the tune of Rs 3.6 million by M/s Universal Enterprises for availing concessionary beneXits of SRO 1125(I)/2011 dated 31.12.2011 and SRO 638(I)/2005 in three consignments.

The PCA-Karachi Directorate, on scrutiny/audit of import data, found that M/s Universal Enterprises imported “Privac 400ML Operation Theater System LargeLock Connection (QTY 25000 PCS)” under PCT heading 9018.3990 dated 31.12.2014 through MCC Appraisement (East), Custom House, Karachi, at a unit value of 0.3415 euro per piece from Germany. It is evident from the history of the importers that a case of un-

der valuation of the identical item found and adjudicated vide Order-inOriginal No. ONO – 411048 – 26082015 on the basis of invoice found in the container at the time of examination, showing unit value at the rate of 1.0742 euro per piece and the goods were assessed and cleared by the importers on the found value.

Thus, M/s Universal Enterprises, Karachi is required to pay custom duty and other taxes at the ascertained unit value of 1.0742 per piece euro on the identical item imported vide the above mentioned GD. This resulted in short levy of Rs 112,309 in custom duty, Rs. 471,700 in sales tax and additional sales tax and Rs 169,812 in income tax. The total short levy stands at Rs 753,821.

The importers are directed to deposit the short levied amount in the national exchequer within 10 days with intimation to this ofXice.

In another case, it was found that M/s Universal Enterprises imported “Privac 400ML Operation Theater System Large-Lock Connection (Total QTY in 2 GDs 40000 PCS)” under PCT heading 9018.3990 dated 30.5.2012 and 8.1.2013 through MCC Port Muhammad Bin Qasim, Karachi and MCC Appraisement (East), at a unit value 0.3415 euro per piece and 0.40 euro per piece respectively from Germany. It is evident from the history of the importers that a case of under valuation of the identical item from same origin and same supplier found and adjudicated vide Order-in-Original No. ONO – 411048 – 26082015 on the basis of invoice found in the container at the time of examination, showing unit value at the rate of 1.0742 euro per piece and the goods were assessed and cleared by the importers on the found value.

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Wednesday, September 16, 2015

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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

Arresting falling exports

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In a meeting with leading exporters and businessmen of the country, Prime Minister Nawaz Sharif bespoke a paradigm shift in the government policy to arrest the falling exports and sought suggestions and recommendations from the business community to chalk out a strategic trade policy framework for the promotion of trade and industry in the country.

The country is facing shortage of electricity and financial indiscipline, not because of any ill-intention on the part of the government, but due to lack of capacity of the implementation machinery. Some of the demands by businessmen are genuine such as early release of refund claims, but pressuring the government to opt for socalled “rationalization of the Pakistani rupee” will further ditch the country into economic woes. The national currency has been eroded to the extent that it has lost strength against even the Bangladeshi taka and Thai bhat. However, the exporters demand for a development of mechanism to avoid delayed release of funds needs to be heard.

The businessmen want the government to rationalize taxes on textile industry and revision of electricity tariff to minimize the cost of production to make Pakistani products competitive in the international market. The government should also discourage wholesale dumping of Indian and Chinese goods and there is a need to impose anti-dumping on semi-finished textile products from the neighbouring countries. As we have earlier mentioned in our editorials, the cottage and agriculture sectors of Pakistan are well established and need the government support to introduce indigenous products in the world market. The government should encourage local and foreign investment to expand the volume of economy and not the volume of taxes from the existing taxpayers. The government will have to search causes and effects, which led to stagnation of exports as compared to the countries in the region.

The world is heading toward possible recession as many industrial countries such as China, Japan and Korea are facing economic slowdown, but Pakistani products have the chances to fill the vacuum by penetrating in the international market. No doubt various mega projects have been launched to generate electricity and develop infrastructure, a comprehensive package to revive industrial activities is also need of the hour. The business community should also find black sheep within its ranks who wants to avail all the utility services free of cost but does not want to pay taxes. A better coordination between official machinery and business community is necessary to identify the troubling areas hindering exports and devise a coordinated strategy for the growth of the economy.

Need to devise prudent auto policy A

LAHORE

Dr AFtAB AFZAL

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uto industry is one of the best earning sectors in many countries around the world and all the dynamics and contributing factors are available for the promotion of this sector in Pakistan.

The country has strong subsidiary industry but it is always been overlooked by the police makers and the political elite at the helm of affairs. Ignoring this vital sector is leading the nation to nowhere as the subsidiary or the cottage industry is the base of the industrialization of the developed economies including Japan, Korea and China. The present government was expected to announce its auto policy this year,

but the matter is being deferred on one pretext or the other and Finance Minister Ishaq Dar, who is also the chairman of the Economic Co-ordination Committee of the Cabinet, has yet to pay attention on this sector.

Earlier, the Federal Board of Revenue had expressed some reservations about the proposed incentives for the new entrants in the industry and the matter was deferred without reaching a conclusion. A committee was entrusted with the job to prepare the new auto policy, but it has yet to deXine limits and parameters for the new scheme of things in the background of the present auto policy which is not consumer friendly. The exorbitant prices of vehicles is not in the interest of the companies, government and the

consumers alike whereas international safety and quality standards are often ignored in the manufacturing of the vehicles at a local level.

The government has to work on two points. How much to allow the import of foreign brands and how many vehicles should be produced annually in the local manufacturing units. The vehicles produced in the country should have indigenous touch as just assembling does produce revenues, but it keeps the scope of the industry within limits.

There is a need to rationalize tax regime as the demand of the vehicles will grow at a fast rate in the coming years and low tariffs will deXinitely increase the scope and volume of auto industry in the country.

Till now only Japanese compa-

nies are allowed to building assembling plants in Pakistan and reliance on a single country only lead to a blind alley at the end of the day.

According to the Economic Survey 2014-15, Pakistan owes $5.5 billion to Japan and it should not be forgotten that strings of economic and political interests are always attached with loans and grants from any country. Therefore, instead of accepting loans and grants, the policy makers should insist on direct foreign investment in the country to boost the economy. No doubt Pakistan has vast experience and potential to emerge as the leading car and spare parts manufacturer and the government can earn a lot from this sector if a prudent auto policy is devised and implemented.

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Longmont Area Chamber elects Bruce as new president LONGMONT: Bruce R. Partain has been named as the new president/CEO of the Longmont Area Chamber of Commerce. Partain comes to Longmont after having served as the president/CEO of the Nacogdoches County Chamber of Commerce in Nacogdoches, Texas between Dallas and Houston. He had held that position since 2001.

Prior to that, he was vice president of membership and communications for the Midland, Texas Chamber of Commerce. He currently serves as board chair of the Texas Chamber of Commerce Executives. “We are very pleased to have someone of Bruce’s caliber joining us,” chamber board chair Carol Schack said. “After an extensive interview process, involving not only our board of directors but also business and community leaders, we feel that he has the skills and expertise that will help lead the Longmont Area Chamber of Commerce now and into the future.” “Our finalists all had the qualities to fit the bill for the position,” Schack said.

Elko Area Chamber Committee supports increase in sales tax committee of business people has announced its support of a proposed quarter-cent sales tax increase for Elko County.

The Elko Area Chamber Government Affairs Committee released its opinion on the issue to Chamber members on Thursday. “We agree with proponents of the increase that the County does not have enough money to provide for the ongoing safety of our firefighters, the vast majority of whom are volunteers,” the committee stated. The committee also said the county has done well maximizing efficiency on maintaining roads, but the limit has been reached. “We understand the situation the county is in and think if there has to be an increase, then this is going to be the best bang for your buck,” co-chair Matt McCarty told the Free Press.

Prior to announcing their support, he and other committee members learned of the county’s current budget and road situation from commissioners Delmo Andreozzi and Glen Guttry. McCarty encourages local business representatives to attend Wednesday’s County Commission meeting to share their opinions.

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Montego Bay Chamber urges Chinese to work for community development resident of the Montego Bay Chamber of Commerce and Industry (MBCCI) on Monday told members of the city’s Chinese business community that she did not intend to give rise to any belief that Chinese nationals were being singled out for vilification. She was speaking with representatives from the community at a meeting convened Monday following a controversial statement about the non-contribution of Chinese nationals to the city. Henry was reported as saying that except for the older members of the Chinese community, who have been here over the years, the Chinese have not been doing anything in their community. A news release from the chamber yesterday said that at the meeting, Henry explained that she had only intended to highlight an initiative to clean up downtown Montego Bay.

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Wednesday September 16, 2015

Chambers

Bangladeshi hc stresses exchange of trade delegations KARACHI

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uhrab Hosain, High Commissioner of Bangladesh, while expressing dissatisfaction over limited trade volume of less than $1 billion between Pakistan and Bangladesh, stressed the need to exchange trade delegations, enhance people-to-people and institutional linkages between the two countries which would help in improving the existing meagre trade volume.

Exchanging views with KCCI President and managing committee members during his visit to KCCI on Monday, the Bangladeshi High Commissioner also expressed concern over trade imbalance between the two countries. Deputy High Commissioner of Bangladesh in Karachi, Noor-e-Helal Saifur Rahman, president KCCI Iftikhar Ahmed Vohra, former president KCCI, Majyd Aziz, Chairman Diplomatic Affairs SubCommittee Naeem Sharif, Former SVP KCCI, Zia Ahmed Khan, former Vice President Nasir Mehmood and

KCCI Managing Committee members were also present at the meeting.

Suhrab Hosain further said that although many Pakistani businessmen and industrialists have been individually visiting Bangladesh for business purposes from time to time but collective efforts by Karachi Chamber and the Chambers of Commerce in Bangladesh were needed in order to improve trade between the two coun-

tries. He said that Bangladesh considers ‘Pakistan as not only a friend but also a brother’.

Referring to a particular suggestion pertaining to direct shipping line between Karachi and Chittagong to facilitate trade which was Xloated by him during his last visit to Karachi Chamber in 2011, Suhrab Hosain asked president KCCI to look in to this matter as it was the business

community’s job to raise voice for such facilities whereas ‘we work as catalyst’. Identifying various sectors in which trade could be enhanced between the two countries, Bangladeshi High Commissioner particularly mentioned pharmaceutical, IT, telecom, agro-based industries and heavy engineering products etc. in which both countries could enhance trade.

ICCI calls for halt in raids on hotels, restaurants without warning

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ISLAMABAD

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slamabad Chamber of Commerce and Industry called upon the local administration to halt conducting raids on hotels and restaurants in Islamabad without Xirst issuing warning as these activities were creating harassment in the business community.

Muzzamil Hussain Sabri, president, Islamabad Chamber of Commerce and Industry said that ensuring cleanliness in hotels and restaurants was a good step on the part of the local administration, however, these businesses should Xirst be warned to improve themselves and if they fail to improve, then action should be taken against them as per law. He said local administration should also develop proper Standard Operating Procedures (SoPs) or

IccI president Muzzamil hussain Sabri

check list for hotels and restaurants to ensure neat and clean food.

He said many restaurants and bakeries in the federal capital have been

sealed and photographs thereof were being uploaded on the website of ICT Administration, which was not a good practice.

Muzzamil Hussain Sabri said imposing Xines on hotels and restaurants without waiting for laboratory reports was also not a good approach.

He said businessmen were ready to fully cooperate with local administration for maintenance of neat and clean conditions on food outlets, however, conducting sudden raids on such businesses without providing SoPs or checklist was creating concerns in the businessmen. He said local administration should take the businessmen of hotels and restaurants into conXidence and develop SOPs or checklist in consultation with stakeholders to improve the standard of food at hotels so that people could avail good food at such outlets. He said after developing SoPs or check list, local administration should ensure continuous monitoring of hotels and restaurants in order to promote culture hygienic conditions in hotels and restaurants.

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Philippines Customs revenue deficit reaches $194.7m in August Wednesday September 16, 2015

World

MANILA: The Bureau of Customs (BOC), the government’s second largest revenue agency, recorded a deficit of P9.1 billion ($194.7 million) in August, it’s highest ever since President Benigno Aquino III assumed office in 2010. An initial collection report showed that the BOC generated P26.8 billion ($573.4 million) in revenue collection, which was way below its target of P35.9 billion ($768.2 million) for the month. The low volume of imports was cited by the source of the report as the reason behind the revenue slump. August, traditionally billed as a "ghost month," was challenging for the bureau as businesses do not engage in much activity during the this period resulting in the lowest volume of shipments of any month so far this year.

HK Customs seizes HK$12m uS customs finds smuggled beetles in air, sea cargo shipments worth tobacco in 2 raids H

HONG KONG

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SAN JUAN

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aul and Ringo are the only Beatles to ever perform individually in Puerto Rico. Although recently, U.S. Customs and Border Protection (CBP) San Juan Field Operations Agricultural Specialists intercepted two distinct species of beetles in two separate air and sea cargo shipments; one discovered for the Xirst time in the area port of San Juan, and the other discovered for the Xirst time Nationwide.

Gonocephalum sp.

“Detection of actionable pests is critical in order to protect agriculture within this region,” stated Marcelino Borges, Director of Field Operations in Puerto Rico and the US Virgin Islands.

CBP Agriculture Specialists intercepted a Microrchinus sp. (Curculionidae), commonly known as true weevils or snout beetles, within

Zimbabwian customs arrests South African for smuggling 29 sables at border ustoms in southern Zimbabwe have arrested three South Africans who they say were trying to smuggle 29 sables across the border, state media reported on Sunday.

The official Sunday Mail said the animals were worth $348 000 and were being transported in two trucks from a conservancy in Zimbabwe's arid lowveld region allegedly towards an undesignated border crossing with South Africa. They were arrested on Saturday when the trucks got stuck in mud near Beitbridge, the paper said.

"The South Africans had no capture and translocation permits and had no export permits for the sables. The only documentation they had was a movement permit issued by the department of veterinary services, Hwange office," national parks spokesperson Caroline Washaya-Moyo told the Sunday Mail. Hwange is nearly 700km from Beitbridge.

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cut Gerbera Xlowers, imported via air cargo from Colombia. Gerbera is also commonly known as the African Daisy.

Suspected as a pest, CBP sent the insect to the U.S. Department of Agriculture’s (USDA) Systematic Entomology Laboratory, that later conXirmed this to be a First Time Nationwide interception.

At the San Juan Seaport, CBP Agriculture Specialists intercepted one live insect identiXied as Gonocephalum sp., a species of Darkling Beetle, within a garlic shipment from Spain. The insect was sent to USDA’s Plan Protection and Quarantine OfXice, which indicated that it was considered a First Time interception for Puerto Rico and San Juan.

Canada customs launches Marine Container Examination Program

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OTTAWA

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questions and answers guide from the Canada Border Services Agency (CBSA) outlines the purpose and processes of its Marine Container Examination Program.

Marine containers are the backbone of international trade but unfortunately they have become, over

the past few decades, a preferred method of transport for illicit goods.

Smugglers use elaborate schemes and sophisticated techniques to conceal illicit goods within marine containers. Customs authorities in every country have reacted with inspection programs. Decisions on whether to inspect a given container can be based on tips, on computer assisted analysis, as well as on blind random sequences.

ong Kong Customs believes they have struck a heavy blow against a cross-border tobacco-smuggling syndicate following the seizure of HK$12 million worth of untaxed cigarettes in two operations this month.

Investigations revealed the gang mixed boxes of illicit cigarettes with other products and used goods vehicles to smuggle the contraband from Shenzhen to Hong Kong via various border crossings, according to a senior customs ofXicial.

“Upon arrival in Hong Kong, the cigarettes would have been conveyed to tobacco trafXickers who sell to buyers through telephone orders,” Wan Hing-chuen, deputy head of Customs’ revenue and general investigation bureau, said today.

He said intelligence indicated the gang was one of the major cigarettesmuggling syndicates in the city.

This was revealed today after customs ofXicers conXiscated 1.9 million cigarettes on board a truck at the Man Kam To border crossing yesterday.

The consignment was found concealed inside 76 sofas when ofXicers

intercepted the truck entering the city from Shenzhen via the control point.

Wan said the one-metre-long sofas, which were wrapped with plastic sheets, were hidden behind more than 900 boxes of plastic and electronic goods in the innermost part of a shipping container loaded at the back of the truck.

“After suspicious images were found in an X-ray examination, ofXicers cut open the sofas and discovered the cigarettes,” he said.

“About 120 to 130 cigarette cartons [each with 10 packets of 20 cigarettes] were hidden in the hollow centre of each sofa,” the superintendent said.

He said the contraband worth HK$5.1 million was for local consumption and the haul would have amounted to evasion of HK$3.6 million in taxes if it went undetected.

OfXicers arrested the truck driver, a Hong Kong man, 47, and impounded the truck. In the afternoon, he was still being held for questioning and had not been charged.

The seizure came a fortnight after customs ofXicers at Lok Ma Chau control point arrested a lorry driver, 40, after discovering HK$7 million worth of illicit cigarettes on board his vehicle on September 1.

Dhaka customs seizes 675 cartons of foreign cigarettes

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DHAKA

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ustoms Intelligence officials seized 675 cartons of foreign cigarettes worth around Tk 1 crore at Shah Amanat Interna-

tional Airport in Chittagong yesterday.

The cigarettes of three different brands -- 303, Black and Mond -had been brought from Dubai on an Air Arabia flight on August 10, they said, adding, the identity of the owner could not be known.

turkey customs minister confirms Zanjani, Zarrab corruption charges

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ANKARA

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n response to an inquiry submitted to Parliament by main opposition Republican People’s Party (CHP), Turkey’s customs minister conXirmed the connection between two Iranian businessmen, Reza Zarrab, allegedly involved with wide

scale government corruption in Turkey, and Babak Zanjani.

Customs and Trade Minister Cenap Aşçı, responding to an ofXicial inquiry, conXirmed a report detailing gold imports and exports involving companies linked to Iranian businessman Reza Zarrab from 2011 and 2013. The report, authored by Customs and Trade Ministry’s chief inspector Mehmet Eryılmaz, was sub-

mitted to Parliament by Republican People’s Party (CHP) Parliamentary Group Deputy Chairman Levent Gök and published on Aug. 8, 2014.

Zarrab, who resides in Turkey, was a key Xigure in a major corruption and bribery investigation made public Dec. 17, 2013. The investigation implicated several senior Justice and Development Party (AK Party) ofXicials.

According to the graft probe, Zarrab is

claimed to have distributed 137 million Turkish lira (66 million USD) in bribes to former ministers, their sons and possibly a number of other bureaucrats in order to cloak Xictitious exports and money laundering. Minister Aşçı conXirmed information from the Xinal section of the 651-page report, detailing existence of two Xirms that imported gold bullion and four that exported it.

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South Korea announces Busan port expansion plans BUSAN: The South Korean government has announced plans to add a further 15 berths to Busan New Port, increasing container capacity by 15m teu. The new facilities will feature container terminals, feeder terminals and multi-purpose terminals. Work will begin in stages based on actual cargo demand, under the coordination of central government. Busan Port Authority (BPA) President, Lim Ki-tack, said that the port is on track to handle 20m teu this year and the latest plans would aid its efforts to be the leading transhipment hub in Northeast Asia. “Our aim is to continually develop the port and pre-empt the rapidly evolving maritime transport industry to ensure that the port of Busan remains a key part of the global logistics chain and a major contributor to the economic development of the region,” he said.

China’s Shanghai port handles more containers in August hanghai port, the world’s busiest container port, has moved higher container throughput in August, according to figures released by Shanghai International Port.

The Chinese port handled 3.16m teu of shipping containers in August, an increase of 1.6% compared to 3.11m teu recorded in the same month of 2014, data from SIPG showed. Last month’s volumes also went up compared to 3.12m teu posted in July this year. In the first eight months of this year, Shanghai port registered a total container throughput of 24.3m teu, a rise of 3.7% compared to 23.44m teu seen in the previous corresponding period.

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handling capacity of port Singapore up 1.2% to 337.23m ton rom January-July 2015, the port of Singapore handled 337.23 mln t of cargo (+1.2%, year-on-year).

According to the Port Authorities, oil transshipment climbed by 6.7% to 114.8 mln t, container throughput fell by 4.6% to 18.55 mln TEUs. Singapore is a Southeast Asian island city-state. In 2014, container throughput of port Singapore hit 33.87 TEUs, while the port’s total throughput reached 581.27 mln t.

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Zhuhai Port brings in new investors to support energy subsidiary huhai Port has announced that it has brought in three new strategic investors for subsidiary Zhuhai Gangsheng New Energy Company.

The three companies Zhuhai Lingxian Hi-tech Industry Investment Management, Shenzhen CDF Capital and Beijing Huicheng Huanyu Investment will jointly invest up to RMB89.8m ($14.1m) into the subsidiary.

Zhuhai Gangsheng New Energy Company was established in July this year after the integration of Zhuhai Port’s windpower assets. Zhuhai Port said the company will accelerate its business diversification through more mergers and acquisitions this year and it has applied to list Gangsheng New Energy on National Equities Exchange and Quotations (NEEQ).

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Ports & Shipping

Wednesday September 16, 2015

port of Los Angeles posts cargo growth in August, Strongest T performance Since 2006

Hong Kong port July through put down 9.5%

he pace of the falls in container volumes at the Port of Hong Kong seems at least to have slowed a little in July, with a 9.5% fall in throughput to 1.75m teu compared to the 12.9% fall in volumes the month before. However, looking at the raw figures, this is cold comfort as the drop is off an already low base of 1.93m teu in July 2014, a level it has since slid from to current levels.

At the main Kwai Tsing terminals, volumes fell 13.3% to 1.35m teu from 1.50m teu previously, while at the non-Kwai Tsing and midstream terminals, throughput actually rose 6.4% to 400,000 teu. For the year-todate, the grim outlook continues, with overall volumes down 9.1% to 11.94m teu while at the Kwai Tsing terminals throughput has fallen off 11.3% to 9.33m teu. At this rate, with little optimism for a good high season, the port looks set for a steep, possibly double digit fall in throughput for the year.

LOS ANGELES

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ontainerized cargo volumes at the Port of Los Angeles have increased by 3.8 percent in August 2015 compared to the same period last year, according to a press release issued by the Port of Los Angeles.

It is the strongest August performance of the Port since 2006.

The Port handled a total of 786,677 Twenty-Foot Equivalent Units in August of 2015, according to the press release.

The last time it was this high was in 2006 when 790,726 cargo units moved through the port complex.

Gene Seroka, executive director of the Port of Los Angeles, said in the press release that the numbers show that their "terminal operators longshore labor and supply chain partners are adjusting to the new industry dynamics of carrier alliances.""Our San Pedro Bay supply chain optimization working groups, overseen by the Federal Maritime Commission, are providing valuable insights that contribute to our mission to improve cargo Xlow efXiciency and velocity," he said.

The Daily Bulletin also reported that this is a sign that bigger ships and cargo owners have been returning to the nation's

haze: port klang, petaling Jaya, Shah Alam’s ApI increase he air quality in Selangor is gradually worsening at three out of the five monitoring stations in the state. As at 2pm today, the Air Pollutant Index (API) at Port Klang, Petaling Jaya and Shah Alam has risen to 164, 145 and 149 respectively compared to 163, 142 and 146 at noon. The API in Banting dropped slightly to 171 from 172 but remained the highest in the country while the API in Kuala Selangor also improved by one point to 145 at 2pm from 146 at noon.

An API reading between 0 and 50 is good, 51 to 100 is moderate, while 100 to 200 is classified as unhealthy, 200 to 300 as very unhealthy and more than 300 is hazardous.

T busiest seaport.

The Port of Los Angeles has been suffering from slightly declining numbers in the last two months.

The Daily Bulletin mentioned that the port saw sluggish numbers after shippers decided to divert their ships to different ports due to the congestion caused by the lack of available trailers used to tow containers. The Port of Los Angeles saw a 2 percent and 2.5 percent drop in

June and July, respectively.

The August TEUs is the Xifth strongest month ever and it is helped by big ships deciding to use the Port of Los Angeles, according to the Daily Bulletin.

A total of 101 ships called at the Port of Los Angeles, bringing in 786,677 cargo units, compared to August 2014, which 136 ships called but bought in only 757,702 cargo units.

ports of tacoma, Seattle announce draft alliance agreement

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SEATTLE

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he Port of Tacoma and the Port of Seattle have revealed a Xinal draft agreement ahead of the proposed ‘Northwest Seaport Alliance’.

The agreement will combine the two ports’ marine cargo terminal investments, operations, planning and marketing in order to strengthen

competition of the Puget Sound gateway and attract higher volumes of trafXic. Don Johnson, commission president at the Port of Tacoma commission, said: “We intend to make our organisations stronger and more sustainable to better serve our customers, grow our regional economy and address unprecedented competition facing the shipping industry.”

The agreement outlines the alliance’s governance charter, management and Xinancial structures, a

transition plan and a business development strategy. The alliance has received some controversial feedback and Don Meyer, a port commissioner at Tacoma has expressed doubts over the agreement citing Seattle’s troubled international shipping sector as cause for concern.

The ports will remain separate organisations, retaining ownership of their respective assets, however they will form a port development authority (PDA), to manage the con-

tainer, breakbulk, auto and some bulk terminals at the ports.

John Wolfe, current Port of Tacoma CEO is the front runner to become the CEO of the alliance following the Federal Maritime Commission’s (FMC) approval of the agreement. Meyer fears the revenue sharing between the healthy terminals in Tacoma and the troubled terminals in Seattle could affect Tacoma’s bottom line and its critical bond rating.

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French delegation to visit Iran to enhance exports PARIS: A French delegation, including the representatives of 130 largest companies of this country, including Total and Peugeot, will visit Iran.

The visit organized by the Movement of the Enterprises of France (MEDEF) will be made on September 21-23. French Minister of Agriculture and Minister of Trade will also arrive. French companies, including Total and Peugeot, left the Iranian market in 2011 after imposing the sanctions against Tehran. According to the French foreign ministry, in 2011 the export of Iranian goods to France amounted to 1.77 billion euros.

Wednesday, September 16, 2015

CUSTOMS BULLETIN

Customs’ Licencing Committee refuses to renew TPL Trakker’s licence KARACHI

AFtAB chANNA

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akistan Customs’ Licencing Committee has refused to renew the licence of M/s TPL Trakker Limited and directed the company to give a detailed report/ presentation on the performance since it was given licence in 2012, Customs Today learnt.

In this regard, a meeting of the Licencing Committee was recently held at the Custom House with Chairman, Directorate General Transit Trade Muhammad Javed Ghani in the chair.

While, the members of the Licencing Committee, Collector Model Customs Collectorate Appraisement West Jawwad Uwais Agha, Collector MCC Preventive Syed Muhammad Tariq Huda, Collector Port Muhammad Bin Qasim Ms Surraya Butt, Director Intelligence and Investigation-FBR Karachi Muhammad Yaqoob Mako, Director, Directorate General of Transit Trade-Peshawar Dr Mateen Khan, Director, Directorate General of Transit Trade-Quetta Pervez Isphani, Additional Collector MCC Appraisement East Khaleel Ibrahim Yousfani attended the meeting. The sources con-

Xided to Customs Today that the meeting of the Licencing Committee started with in-house discussion on the renewal of licence of M/s TPL Trakker Limited Karachi. And, it was

decided that the Chairman Licencing Committee will ask for clariXication from the board regarding the renewal of licence of the TPL Trakker as the company did not participate in the

EOI published by the FBR in April 2015 and they also not have gone through the PPRA Rules when they were given the licence in 2012, sources added. “The Project Director,

M/s TPL Trakker will give a presentation in two weeks and based on report/presentation, the Licencing Committee will evaluate the performance of the TPL”, the sources disclosed.

Pak, China Customs ink MoU to set up Electronic Data Interchange KARACHI

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akistan Customs and the China Customs have signed an agreement to establish Electronic Data Interchange (EDI) aimed at reducing the incidences of revenue losses/under invoic-

ing. The sources told Customs Today that the Pakistan Customs, after the agreement was signed in China, procured software/machines for the EDI establishment.

The EDI would help access trade documents on real time basis from computers of cross-border customs stations besides plugging the revenue losses which

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

account to billions of rupees.

It is recalled here that Federal Board of Revenue issued an alert regarding misdeclaration in imports from China under 50 HS Codes. The Board also showed concerns on the unwarranted concessions granted under various SROs covering preferential or free trade agreements