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pAkIStAN’S fIrSt INDeptH NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 235

Karachi, Tue November 16, 2015

ISLAMABAD

SHAHID MINHAS

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irectorate General Customs Intelligence and Investigation (I and I) Islamabad has seized smuggled goods worth Rs 1.7 billion and has registered 415 cases against accused while arrested 22 suspects from July to October 2015.

Headquarters Deputy Director Khaldunul Haq told Customs Today that Islamabad Customs has seized smuggled goods worth Rs 1.7 billion in different parts of the country, including Rs 61.7 million cloth, 4957 kilograms smuggled tea worth Rs 1.3 million while 179 offending vehicles worth of Rs

Price Rs. 14.00

272 million during the course of anti-smuggling activities in first four months FY-2015-16.

He added that 60,2285 litres of diesel worth Rs38 million were recovered and seized, electronics goods worth of Rs 835 million, Rs 30 million of tyres, tubes and auto parts were also seized in the first 4 months of the current years 2015-16. He further added that 131 non duty paid vehicles worth of Rs168 million, and other Mics.

Smuggled goods worth Rs 290 million, 182 bottles of Liquor having worth of 1.8 million, Rs 22 million of 536,500 kilograms of Urea, 22,000 Buckets of Grease having worth of Rs 6.3 million while 2066 no of smuggled blankets, and Toiletries having worth of Rs 9.0 million were also seized during antismuggling activities.

DECIDING CASES

IMPOUNDING VEHICLES

DETECTING TAX EVASIONS

SEIZING CONTRABAND

THWARTING SMUGGLING

Asif Jah’s Customs Appeals decides 90 cases involving Rs 60m in 4 months. | See pAge 06 |

Customs Preventive, on directive of Collector Mukarram Jah, impounds six non-duty paid luxury vehicles. | See pAge 02 |

Collector Sarfraz’s Multan Customs has detected Rs 2.2m tax evasion by Dastagir Enterprises. | See pAge 02 |

Tariq Huda’s Customs Preventive has seized 600g brown heroin at Jinnah International Airport. | See pAge 03 |

Collector Mujtaba’s Hyderabad Customs seized items, including dried fruits, worth Rs 25.9 million. | See pAge 12 |

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Customs seizes drugs worth Rs 12.1m in October Tuesday, November 16, 2015

National Customs Preventive impounds six non-duty paid luxury vehicles

ISLAMABAD: Directorate General Customs Intelligence and Investigation Islamabad has seized Rs 12.1 million of drugs and registered 5 cases against the smugglers during October 2015.

According to details Deputy Director head quarter Khaldun ul Haq told Customs Today that during the course of anti-smuggling activities 6,500 kilograms of Poppy Seed and 128 kilograms of hashish while 8 kilograms of Opium and 5 kilograms of Cocaine during the October 2015 were seized in different parts of country. He added Directorate General Customs Intelligence and Investigation Islamabad has arrested 3 drugs smugglers while registered 5 cases against them while further investigations in underway.

collector Sarfraz’s Multan customs detects rs 2.2m tax evasion

LAHORE

M HAYAt

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Dastagir Enterprises was registered as a manufacturer, importer and exporter, but it is actually an export-oriented unit MULTAN

IMrAN ALI kHAN

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collector Mukarram Jah

he Customs Preventive seized six non-customs paid luxury vehicles from various locations in the city during last week.

According to details, Customs Preventive Anti-Smuggling Organization (ASO), on the directives of collector of Customs, intensified crackdown on the use of non-duty paid luxury cars, which are imported illegally.

The ASO team led by assistant collector Dr Adnan and superintendent Mumtaz Ajmal Mian seized six vehicles worth Rs 10 million.

The sources told Customs Today that ASO team consisting inspectors Sajjad Bukhari and others seized two Land Cruisers from Zahoor Elahi Road and Liberty Chowk, Toyota Coaster from Multan Road, Mitsubishi Pajero from Defense Housing Authority, Toyota Camry from Johar Town, and Suzuki Every from Batti Chowk.

The sources said that the vehicles were being run on the city roads on fake number plates and the ASO Lahore confiscated these vehicles on information following intensified measures.

The sources said that the Customs ASO has registered cases in this regard and initiated further investigation.

he Multan Customs has detected tax evasion of Rs 2.2 million allegedly by Dastagir Enterprises during audit process.

Model Customs Collectorate Multan conducted the audit of Dastagir Enterprises on the direction of Deputy Collector (Audit) for the period from 01-03-2015 to 30-06-2013. Dastagir Enterprises was registered as manufacturer, importer and exporter but the firm is an export-oriented unit.

The audit was done to verify the consumption of duty and tax free imported raw material and export of goods as provision of SRO 327(I) /2008 dated 20/03/2008.

During the scrutiny of contents of said firm it was revealed that firm was granted permission to import “fabrics “only and according the analysis certificate was also issued which have also mentioned the consumption formula including input/output ratios and wastage’s allowed about fabrics .

Their input goods were dyed textile woven, ladies suiting fabrics from ratios was allowed to manufacture their output goods of

collector Sarfraz Ahmed

ladies suits, children suits, ladies gowns, scarves and sarees.

Dastagir Enterprises never been allowed to import any other raw materials except fabrics in their granted license but they have formed other items. Through audit of company record it revealed that firm had violated provisions of SRO by importing un-approved goods unlawfully by self-extending the benefit of SRO 327(I)/2008.Firm had manufactured zippers, thread yarn, ladies nighty and children gowns.

Audit team observed few other discrepancies including the balance of quantity of zipper, plastic tape elastic, beads imported unlawfully but the unconsumed quantity have difference in their consumption In the light of audit facts Dastagir Enterprises have committed a gross violation of rule 3 SRO 327(I) /2008 dated 20/03/2008 and so company have found in tax evasion of Rs 2.244 million on account of duty taxes and taxes.

Dastagir Enterprises found involved in import of unlawfully imported and unconsumed goods items which are recoverable from them under section 32 3(A) recoverable from them under Customs act 1969. The audit team forwarded case to Additional Collector Customs Adjudication for further proceeding.

Multan Customs grills arrested smugglers to reach real culprits

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MULTAN

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he Customs Investigation and Prosecution Department has started grilling the arrested seven smugglers.

The Anti-Smuggling Organization Multan had apprehended seven loaded trucks with smuggled goods a few days ago and assessment of the loaded goods of detained truck were under process.

Customs have taken their phys-

ical remand to interrogate further from these seven smugglers. Physical remand of seven alleged smugglers includes Hazrat Ali, Abdul Latif, Shah Nawaz, Noor Jan ,Abdul Wahid, Noor Muhammad and Jaleel Ahmad are on four day remand on request of Anti-Smuggling Organization Investigation and Prosecution department.

Deputy superintendent Syed Muhammad Rizvi and inspector Maqssod Ahmad are investigating all seven accused for further details of their smuggled to detect

their real culprits behind them in smuggling of goods in Punjab. All accused smugglers were belonging to Baluchistan and they are all drivers which played role as facilitators in the handling contraband items.

Sources told Customs Today that Investigation and Prosecution will likely to apply for further remand of accused in order to collect more information from them and Multan Customs will take few more actions after information of these seven accused to recover

more smuggled goods. Department were trying to revealed their whole network operating in the region.

Customs Investigation and Prosecution Multan branch have lodged first Information report against them bearing FIR no.05/2015 on committing offense charge section 2(s)&16 of the Customs act,1969 along with section 3(I) of the import and export control act ,1950 punishable under clauses 89 &90 of section 156(I) & 178.

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ANF confiscates 1,000kg hashish in raid KARACHI: The Anti-Narcotics Force (ANF) Karachi has confiscated hashish in a successful raid. According to sources, after receiving secret information through its informer, ANF Karachi team intercepted a Mazada truck on Hub River Road. The ANF team during the checking process found 1,000 kilograms hashish from its fuel tank. The ANF arrested the accused on the spot. Sources further said that this huge quantity of drugs was being smuggled to Karachi from Balochistan.

Tariq Huda’s Customs Preventive seizes 600g brown heroin KARACHI

AftAB cHANNA

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Tuesday, November 16, 2015

National

customs tribunal reserves judgement in illegal sale of vehicle by ex-uk diplomat ISLAMABAD

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collector tariq Huda he Model Customs Collectorate staff have recovered 600 grams of brown heroin powder from a passenger at Jinnah International Airport.

According to details, the customs staff at Jinnah International Airport arrested a passenger namely Dilawar Hussain holding passport number PC 6893151.

The suspect was going to Colombo by UL 184 flight. The purpose of the visit was to smuggle brown heroin powder weighing 600 grams. The heroin powder was concealed in laptop bag, tablet pouch and CD pouch cover. The customs authorities has registered an FIR against Dilawar Hussain while further investigations are still underway till filing of this report

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Faisalabad Excise collects Rs 79m property tax in Oct FAISALABAD

he Customs Appellate Tribunal has reserved the decision of a case pertaining to the illegal sale of a privately owned vehicle by former British High Commissioner, David Kennan, to a Pakistani citizen.

Sirajul Mulk was the Pakistan citizen who purchased former British commissioner’s vehicle without paying the liable duty on the transfer of vehicles owned by foreign embassies non-Pakistani staffers.

Siraj ul Mulk had filed the petition in the tribunal and offered collector customs, Islamabad to disbursing five percent duty for settling the matter and regaining the vehicle which was seized by customs authorities. Customs officers captured the vehicle after five years of purchase by Siraj ul Mulk.

However, the respondent in the case argued for 100 percent duty disbursement as the vehicle was solved only after one year of import.

The respondent counsel referred to customs rules and argued that a vehicle owned by foreign national staffers of British embassy had to pay 100 percent duty in order to sale vehicle before completion of three years’ period. The sold vehicle fall in B-category, liable to 100 per-

cent duty in case of sale before three years, he submitted.

David Kennan had sold the vehicle to Pakistani citizen without writ-

ing to FBR, counsel said during case’s hearings.

CAT Division Bench comprising of Chairman Ghulam Murtaza Bhatti

and Member Technical, Khalid Mehmood heard the case and reserved its decision after hearing the case on November 5, 2015.

IQrA SHeHZADI

Court extends remand of suspect in Rs 8m smuggling case

he Excise and Taxation Department has collected Rs 79.64 million as property tax from Jhang, Chiniot and Toba Tek Singh during October 2015.

As per details, the excise has collected Rs 70.2 million from Jhang during October while it has collected Rs 2.375 million in October. Moreover, Toba Tek Singh property branch has also collected Rs 4.178 million in October. All these areas are come under the jurisdiction of Faisalabad Excise and Taxation. The officials said that they are trying to aware the people about the property tax, adding that stern actions will be taken against the tax defaulters.

customs court also sends alleged smuggler on 14-day judicial remand

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LAHROE

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IMrAN MeHAr

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he Special Court of Customs Taxation and Anti-Smuggling again extended the judicial remand of the suspect involved in smuggling case.

According to the details, Niaz Muhammad was arrested by the Customs Intelligence and Investigation Faisalabad following the charges of smuggling. Earlier, he was produced before the court

where Customs Court accepted his physical remand for three days, while after expiry of physical remand, the courts remanded him into the custody of Customs Intelligence for further investigation.

The accused was arrested by authorities when they recovered smuggled cloth from his possession. The cloth was smuggled into Pakistan from Afghanistan through Khyber Pakhtunkhawa route. The value of the confiscated items has been estimated Rs 8 million.

The Customs authorities asked

the suspect to produce documents showing legal import of the items but he remained failed; therefore the officials seized the items and registered a case against suspect under Pakistan Customs Act 1969.

Meanwhile, the Special Court of Customs Taxation and Anti-Smuggling has sent a suspect involved in smuggling of auto parts for motor bikes on a 14-day judicial remand for further interrogation.

As per details, Special Judge Chaudhary Ameer Hussain heard the case where Customs Investigation and Intelligence did not

present complete challan of the case. The court after hearing the arguments of both sides ordered to send the suspect, Muhammad Faiz on judicial remand.

As per details, Muhammad Faiz was arrested by the Customs Intelligence following the recovery of smuggled auto parts worth Rs 5 million from his possession.

The suspect was used to smuggle the items from Afghanistan bring into Pakistan through Chaman border and supplied theses goods in local markets causing loss to national kitty.

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Excise seizes documents of 130 vehicles on token tax default Tuesday, November 16, 2015

Business

LAHORE: The Excise and Taxation Department Motor Branch seized documents of 130 vehicles during one week from Monday to Saturday. According to the Excise officials, these teams were working in different areas of the city to take action against defaulters.

The crackdown was started after instructions of director general Akram Ashraf Gondal.

These excise teams have started establishing checkpoints in different areas of the city.

Excise teams established checkpoints in different areas of the city including Shahdara, Jail Road, Thokar Niaz Baig, Barki Road and Ferozepur Road to aware people to clear their token tax as soon as possible.

external, internal debts reach $65 billion, says Ishaq Dar ISLAMABAD

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he external and internal debts and liabilities of country have reached $65 billion by the end of August 2015.

This was revealed by Federal Finance Minister Ishaq Dar, while responding to an adjournment motion moved by Senator Sherry Rehman in Senate on Friday.

Sherry Rehman moved the motion regarding accumulation of total debt over Rs3.81 trillion which, subject to approval of the latest tranche by the IMF Board, will increase to $68 billion by the end of the current fiscal year and Pakistan will need more money this year for service of the external debt.

The minister said some sections are creating negative picture of debt

but the government has managed to make public debt more sustainable as compared to 2013 when we took the charge. He said fiscal deficit has been cut down from 8.8 percent to 4.3 percent and it will be further reduced.

He said the government after

coming into power immediately abolished secret service funds of 32 institutions and cut down Rs135 billion expenditure. He said present growth rate of the country is three to four percent, which is acceptable for a developing country.

The minister said the govern-

ment has a roadmap for financial discipline and to reduce debt, adding that IMF condition to increase sales tax to 18 percent was not accepted in larger interest of common man. He said Rs45 billion were spent on this operation last year, adding that Rs100 billion have been allocated for it for current year while Rs45 billion will be allocated in next fiscal year.

The minister said that 67,000 families of IDPs have so far returned to their homes. About Eurobond, Dar said, 90 renowned funds have taken this bond and there is full transparency in the process. He said the Eurobond has great significance for Pakistan, as it not only introduced the international capital market after seven years but also allowed access to cheaper foreign resources for building country's reserves, which have paved the way for exchange rate stability and appreciation.

NEPRA hikes power tariff from Rs 1.76 to Rs 2.1/unit for NTDC ISLAMABAD

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he National Electric Power Authority (Nepra) has hiked power tariff from Rs1.76 to Rs2.1 per unit for bulk supply to National Transmission and Dispatch Company (NTDC) for the year 2015-16.

The power tariff was increased 27 paisa per

unit for the bulk supply, as per the decision announced here Friday. The Nepra also increased net hydel profit of Khyber-Pakhtunkhwa to Rs 18.7 billion from Rs 06 billion per annum.

The Nepra announced the decision on a petition filed by Wapda, which requested the regulator to incorporate Net Hydel Profit (NHP) or Water Used Charges (WUC) at the rate of Rs 1.10 per unit for all hydel power stations payable to respective provinces and Azad Jammu and Kashmir

(AJK). Wapda had shown the revenue requirement of Rs 122.552 billion for current financial year 2015-16 as against Rs 56.214 billion determined by Nepra for 2013-14 saying the operation and maintenance (O&M) expenses (variable portion) will be Rs 1.222 billion, and O&M expenses (fixed portion) Rs 11.527 billion. The depreciation cost has been projected in the petition at Rs 5.750 billion. The Nepra has also sent a copy of the decision to the ministry of water and power.

FDI down by72%: Telecom sector saw 1.8% decline last year ISLAMABAD

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igher taxes have caused 1.8 per cent decline in the revenue of telecom sector during the last year.

Pakistan Economy Watch (PEW) has expressed concern over this decline, saying once vibrant telecom industry of Pakistan is dying a slow death due to excessive burden of taxes. It said the direct foreign investment has also witnessed decline as DFI plummeted by 72 percent to $121 million for the fiscal year ending June 30th. The telecoms industry contributed 50 percent less in taxes compared to the previous year which were Rs126 billion, down from Rs243 billion, said PEW President Dr Murtaza Mughal.

He said that biometric subscriber verification that resulted in overall connection numbers dropping by 18 percent. At the end of the fiscal year, a total of 114.7 million subscribers remained down from 140 million in FY14.

Dr Murtaza said that Sales tax on numerous types of imported mobile devices has been doubled this year by the government which will is having a negative impact.

He said that cell phones and mobile Internet is important tool to reduce poverty therefore policymakers should consider providing relief to telecom industry reeling under heavy taxation.

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kSe starts week negatively as 100-index drops 198pts T

KARACHI

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he Karachi stocks started week with bearish note as the Karachi Stock Exchange benchmark KSE-100 index lost 198.37 points to close at 33946.41 points level.

The market witnessed the highest trading level of 34144.78 points and lowest level of 33887.07 points, with the total volume of 143,748,198 shares, having Rs6,751,271,560 value.

As many as 323 companies were active; of which 139 advanced, 171 declined and 13 remained unchanged.

The three top traded companies were Pace (Pak) Ltd with a volume of 15,153,500 and price per share of 8.61 (0.06), TRG Pak Ltd with a volume 14,432,500 of price per share of 40.63 (1.64), Shabbir Tiles with a volume 8,369,000 of price per share of 9.70 (1.00).

The top three advancers were Rafhan Maize with price per share 9999 (104) and 80 shares; Wyeth Pak

Ltd with price per share of 2500 (100) and 20 shares; and Shezan Inter. XD share of 713 (33) and 35,000.

The top three decliners were Bata (Pak) XD with price per share of 2950 (-41) and 200 shares volume, Abbott Lab with price per share of 677.09 (12.08) and 2,950 shares volume, and Packages Ltd per share of 619.57 (11.89) and 41,600 shares volume.

Earlier, the KSE lost the 34,000 points mark as 100-index dropped 222.58 points to reach 33922.20 level till midday.

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Tuesday, November 16, 2015

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Tuesday, November 16, 2015

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LAHORE

M HAYAt

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he Collectorate of Customs Appeal has decided above 90 cases involving duty and taxes above Rs 60 million during July-October, sources said.

Sources told Customs Today that Collectorate of Customs Appeals has decided 354 appeals involving duty and taxes worth Rs 211 during financial year 2014-15 against 302 appeals involving revenue worth Rs 143 million during the same period last financial year, official data revealed.

According to details

the Collectorate of Customs Appeals which is being led by Collector Asif Mehmood Jah decided 256 appeals in favour of the department agencies while 81 appeals in favour of the private and trade parties during the period under review.

The data further revealed that 95 percent of the cases decided by the collectorate were upheld by the Applet Tribunal and higher forums.

Earlier, Customs Appeals Collector Asif Jah issued

ONO against the order of deputy collector of Customs Appeals, ordering the customs authorities to do away with confiscation of an old truck bearing registration no.

TKW-024 held by the collectorate of Customs Faisalabad. The collector of Customs Appeals has issued this order in Urdu.

The collector of Appeals, in his order, said that the vehicle was tested in Islamabad Forensic Laboratory which resulted that the vehicle’s number was not tampered.

The order said that the vehicle was registered with Quetta Excise Department and verified by Sindh Road Transportation Corporation.

The collector ordered the Faisalabad Customs authorities to release the confiscated truck No TKW/042. He ordered that the both sides were duly heard and the collectorate of Appeals was satisfied with the version of the appellant.

collectorate decided 256 appeals in favour of department agencies, while 81 appeals were decided in favour of private and trade parties during the period under review

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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

Moody’s: pakistani banking system stable

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t a time when traders have withdrawn billions of rupees from banks on the issue of withholding tax, Moody’s Investors Service has changed the outlook for the Pakistan banking system to stable from negative.

The positive outlook shows improvement in economic growth. The government and traders are still negotiating to reach an agreement on the bank transactions as the government has so far showed no leniency to change its decision. However, according to Elena Panayiotou, Moody’s Assistant Vice President, the accommodative monetary policy of the State Bank will hopefully stimulate lending growth during the next one and half year and support the loan performance in banking sector. The rating agency projects the real gross domestic product of the country at 4 percent in the current fiscal year due to higher spending on infrastructure projects. The government wants to overcome energy shortage and execute projects associated with the China-Pakistan Economic Corridor.

According to Panayiotou, the problem loans of the country will decline to around 12 percent at the end of the current fiscal year as compared to 12.4 percent during the previous fiscal year ending June 2015. However, the level of credit risk will remain high as the banks are heavily exposed to the low-rated Pakistan sovereign through holdings of securities and government-related loans. The agency notes that improvement in domestic economy will improve asset quality of banks and earnings will slightly ease over the outlook period due to various contributing factors. Earlier, the market perception of the country’s risk profile had been upgraded to B3 from Caa1 on June, 11 this year. The agency also notes that higher loan volumes and capital gains, which are booked through the sale of government securities, will only partially offset the pressure on profitability. However, it expects that the banks will maintain ample liquidity and will continue to benefit from the large volumes of low-cost and stable customer deposits.

As a matter of fact, the government will have to reach an agreement with the business community if it wants to keep the banking system in running mode. Better economy ensures strong banking system, but if businesses are under pressure, the banking system will fall. Moody’s expects that the banking sector should maintain a strong liquidity buffer with core liquid assets. But this can be only possible when business community will be encouraged to use banking channels for their business transactions. The government had imposed the withholding tax to earn revenue and pave the way for documentation of the economy, but blind decision proved to be disastrous for the whole banking industry in the country.

thar coal project T

LAHORE

Dr AftAB AfZAL

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he Sindh government successfully generated one megawatt of electricity from the Thar Coal Power Plant in May this year through an underground coal gasification process thanks to the best efforts of Dr Samar Mubarakmand. Dr Mubarakmand had tried to develop a scientific process to tap vast coal reserves, but he was discouraged on occasions by the red-tape to leave the job.

To highlight the hurdles, the world renowned scientist once said that the pen which is authorized to approve funds for the proj-

ect does not move until it gets the ink of money. Now the Ministry of Finance has approved a draft to pave the way for foreign currency loans for the Thar Coal Mining Project. The federal government also wants to give legal cover to the loans for the project, which is a part of China Pakistan Economic Corridor (CPEC). According to newspaper reports, the money will be provided by a consortium of top Chinese banks, including China Development Bank. The ministry has also given a go-ahead signal to the Sindh Engro Coal Mining Company to obtain local currency loan for the Thar Coal Mining Project.

According to reports, the federal government will also issue sovereign guarantees for the proj-

ect by a provision of backup guarantee by the Sindh government while Engro Powergen Thar Limited is constructing a power plant, spending around Rs 4 billion to start work before the financial close. The development of mine will hopefully produce around four million tons per annum coal and the power project will produce 660 megawatt in Thar.

Both the projects will cost around $2 billion. Another news report says that 180 billion tons coal reserves were discovered in Tharparkar district in the early 1990s, but could not be exploited due to lack of interest of the successive governments in the country. However, now a consortium of local banks has pledged Rs 50

billion to harness the untapped natural resources in Sindh. Once the two projects are completed, it is hoped that not only the quality of life of the local people will improve, the country will also overcome energy crisis to some extent.

The most important factors hindering the implementation of the promising projects are red-tape as well as corruption. Billions of rupees are syphoned off the development schemes, leaving the nation in lurch as the benefit of progress seldom reach common man. It is hoped that the present government, without going into political consideration, will consult Dr Mubarakmand and try to develop indigenous technology.

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SCCI condemns terror attacks in France SIALKOT: Sialkot Chamber of Commerce and Industry (SCCI) strongly condemned the bloody terror attacks in Paris-France, which left more than 160 dead there. Talking to the newsmen here, the SCCI president Maj(Retd) Mansur Ahmed expressed his sincere condolences to the families of those innocent people who lost their lives in terrorist attack in France. He said that France and Pakistan stood shoulder to shoulder, in all adversaries, and today, we stand again in solidarity with the French people and its government as they seek to bring to justice the perpetrators of this attack and relief to victim families. He stressed that there is no room for this type of violence in a modern society and we all stand together to crush heinous designs of terrorists. SCCI president added that people of Pakistan stand with France adding that our thoughts and prayers are with the victims, their families, and the French people.

BISP, SCCI to provide technical training to 300 marginalised families enazir Income Support Programme (BISP) has chalked out a multiphased plan to give the necessary training of various advanced industrial skills to as many as 300 BISP beneficiary families in Sialkot district in active collaboration with Sialkot Chamber of Commerce and Industry (SCCI) here.

Director BISP Gujranwala Division Nadeem Alam Butt stated this while talking to the newsmen here today. SCCI President Maj (Rtd) Mansur Ahmed, SVP Muhammad Sarfraz Butt and project’s stake holders Abdul Shakur Mirza (Regional Coordinator AF Waseela Taleem Proejct) and Saeed Iqbal (District Coordinator AF Waseela Taleem Project Sialkot) were also present on this occasion.

Director BISP Nadeem Alam Butt has termed it a revolutionary programme, saying that the both BISP and Sialkot Chamber of Commerce and Industry (SCCI) would start giving the necessary training of the advanced industrial skills to as many as 300 BISP beneficiary women in Sialkot’s as many as 350 different factories and industrial units in January 2016, as all the file work has been completed and necessary arrangements have been finalized in this regard.

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RCCI to host first ‘Global Entrepreneurship Week’ awalpindi Chamber of Commerce and Industry (RCCI) in collaboration with its 11 partner universities is organizing Global Entrepreneurship Week (GEW) from November 16-20. Federal Minister for Planning, Development and Reforms Ahsan Iqbal will be the chief guest on this occasion.

President RCCI, Mian Humayun Parvez has said that GEW is an international initiative that introduces entrepreneurship to young people in six continents. Since its creation, more than 10 million people from 102 countries have participated in entrepreneurial-related activities during the GEW, he added.

While commenting on the background of GEW, Senior Vice President, RCCI, Saqib Rafiq has said that GEW emerged in 2008 as a result of Enterprise Week UK and Entrepreneurship Week USA 2007.

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Tuesday, November 16, 2015

Chambers

pak-tajik trade bodies agree to promote trade cooperation ISLAMABAD

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slamabad and Tajikistan Chambers of Commerce and Industry have signed a memorandum of understanding to promote mutually beneficial cooperation between private sectors of both countries for enhancing bilateral trade, investment, joint ventures and technology transfer in areas of interest.

Islamabad Chamber of Commerce and Industry President Atif Ikram Sheikh and Chairman, Tajikistan Chamber of Commerce and Industry (TCCI) Chairman Sharif Said signed the MoU at ICCI. Speaking at the occasion, Chairman Sharif Said said that Tajikistan has initiated 471 investment projects in various sector including agro-industry, pharmaceutical, food and processing industry, building materials, transport and communication, chemical and power sectors and stressed that Pakistani investors should explore investment opportunities in his country. He said that especially Pakistan’s small industries have

great potential in Tajikistan to flourish.

He said Tajikistan was very rich in energy resources and was producing cheapest electricity in the world while only 5 percent of its electricity was being exported. He said Pakistan should enhance cooperation with Tajikistan in energy sector to overcome its energy problem. He said Tajikistan was holding an exhibition in April 2016 and invited ICCI delegation to participate

in that event to explore business opportunities. He was hopeful that MoU of cooperation between capital chambers of both countries would play positive role in increasing business linkages and improving bilateral trade between Pakistan and Tajikistan. Atif Ikram Sheikh said that Pakistan was focusing on Central Asia for trade and exports and added that Tajikistan’s cooperation was very important to realize these objectives. He said

China-Pakistan Economic Corridor would create lot of investment opportunities and stressed that Tajik investors should come to Pakistan and join hands with Pakistani and Chinese investors to reap benefits of $46 billion flagship project.

He said a direct flight from Pakistan to Tajikistan took just one and a half hours and stressed that both countries should try to establish direct air links that would help in promoting bilateral trade.

Increase in gas tariff sheer injustice: LccI

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LAHORE

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ahore Chamber of Commerce and Industry (LCCI) has invited attention of the government towards high gas tariff and called for shelving any such plans that are bound to ruin the industrial activities.

In a statement issued here Saturday, the LCCI President Sheikh Muhammad Arshad said that at the moment when industrial sector is coping with the challenge of energy deficit, increase in gas tariff is a sheer injustice.

He said that dream of economic growth cannot come true without ensuring availability of cheap energy to the manufacturing sector therefore;

LccI president Sheikh Muhammad Arshad

government should withdraw recent hefty increase in gas tariff immediately. Sheikh Muhammad Arshad said that despite repeated appeals of the LCCI, government made repeated in-

creases in the gas tariff and once again posing for that.

“Trade & Industry is already in deep trouble because of delay in refund claims, high cost of doing business and withholding tax while increase in the gas tariff would add their miseries”, Sheikh Muhammad Arshad said.

LCCI President said that increase in gas tariff would jack-up the cost of doing business manifold and oust the export-oriented industries from the international export market where Pakistani products already facing hard competition. He said that such anti-business acts would hamper the growth of manufacturing sector.

He said that the proposed raise in the gas tariff would create multiple problems for the industrialists as they have to bear heavy loss while

fulfilling their export commitments.He said that the government machinery always vow to take the private sector on board but they do not bother to consult LCCI or any other sector-specific association while making the decisions like hike in gas or electricity tariff.

The LCCI President said that the impact of reported increase would be much bigger than the expectation of the government who should avoid any such decision keeping in view the economic scenario in the country. He said that at a time when all the governments in the world were facilitating their respective private sectors, the situation in Pakistan is the other way round and various government departments were tightening noose around the private sector.

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Beijing Customs intercepts 144 undeclared iPhones Tuesday, November 16, 2015

World

BEIJING: A total of 144 undeclared iPhones were intercepted at the Beijing International Airport when a foreign passenger tried to take them into the country, media reported. This is the biggest case of undeclared iPhones found by Beijing Customs through inspection of passengers’ baggage. The foreigner will have to pay duty taxes for the iPhones before retrieving them. Beijing Customs officials said inbound passengers have to declare what they bought in other countries upon their arrival to China in order to prevent possible penalties. In March, a man from Hong Kong was caught smuggling 146 iPhones by Customs at Luohu checkpoint in Shenzhen. He had strapped 126 iPhones to his waist and 20 more to his shanks in an attempt to smuggle them from Hong Kong to Shenzhen.

Dubai customs honours constructive complaint submitters DUBAI

cuStoMS BuLLetIN report

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RIYADH

www.customsbulletin.com

cuStoMS BuLLetIN report www.customsbulletin.com

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ubai Customs awarded 85 of DC’s premier clients; including importers, exporters, FZ companies, customs brokers, express couriers, handlers, shipping agents, Virtual Corridor users, DC Consultative Council members, top e-services users and constructive complaint submitters.

The customs organised the annual client awarding ceremony at the JW Marriott Marquis Hotel Dubai, in presence of Sultan Ahmed bin Sulayem, Chairman of DP World and Chairman of Ports, Customs and Free Zone Corporation, Ahmed Mahboob Musabih, Director of Dubai Customs, DC top officials and 200 of DC’s clients from all business sectors and domains. Sultan bin Sulayem and Ahmed Mahboob Musabih H.E. Sultan bin Sulayem thanked the clients for being their partner in success and excellence. He underlined that the globally acknowledged spearhead status of Dubai at the forefront of almost every field of modern progress and growth indexes should not be

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perceived as a conventional success story nor as a product of coincidence.

This acclaimed success, he added, is the fruit of a long journey of excellence, entailing multiple layers of initiatives, future insights and determination. Bin Sulayem emphasised that this could not have been achieved without the insightful directives and vision of our wise leadership, towards the setup of integrated and advanced infrastructure, the diversification of our national economy, the implementation of cutting-edge business-friendly legislations, and

the economic security and stability of the emirate – all of which has strengthened Dubai’s regional and global competitiveness.

“All of Dubai Customs accumulated successes are attributed to the kind care and unwavering support of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to the Department’s efforts and the vital role it assumes as a catalyst for boosting national economy by facilitating global trade flow.”

Customs agency dragging the chain on offshore GST: retailers

he New Zealand Customs Service is dragging the chain on moves to collect goods and services tax on imports of physical goods in the same way as the sales tax will be levied on e-commerce transactions from October next year, says Booksellers NZ, the national lobby group for book stores.

Revenue Minister Todd McClay

Saudi Customs seizes 22 million amphetamine pills, 26kg heroin in a year

announced today the tax department will be collecting revenue from October next year on low value ecommerce transactions for items such as e-books, streaming music and TV-on-demand, but Customs has today delayed the release of a discussion document on taxing lowvalue physical goods such as books, CDs, DVDs, clothes and shoes by five

months.

“A discussion paper on applying GST to online purchases of small value goods was expected this month,” Booksellers NZ chief executive Lincoln Gould said in a statement. “Now today, the minister has said this discussion paper will not come out until April next year from the Customs Department.

audi authorities, where drug traffickers are sentenced to death, have seized 22.4 million amphetamine pills in one year, an interior ministry spokesman said Sunday.

Around 28.8 tonnes of hashish and 26.2 kilograms of heroin have also been seized during the past Hijri Islamic year which ended in mid-October, the spokesman said in a statement published on the official SPA news agency.

In their campaign against drugtrafficking, authorities have also

confiscated hundreds of weapons, including 184 machineguns as well as rifles and guns, in addition to over 41 million riyals (11 million dollars), said the statement.

During eight months of the past Hijri year, 1,776 drug traffickers were arrested in the kingdom.

Under the Gulf state’s strict legal code, murder, drug trafficking, armed robbery, rape and apostasy are all punishable by death.

Last month, Lebanese airport security arrested a Saudi citizen and four others after nearly two tons of Captagon capsules and cocaine were found waiting to be loaded onto their private plane at Beirut airport.

Manila customs shifting to e-filing of export documents

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he bureau of Customs (BoC) has set a three-month trial period for shifting to an electronic system of filing export declarations.

Customs Memorandum Order 392015 outlines a pilot testing regime for the online application and issuance of certificates of origin for exporters as part of the country’s commitment to the Association of Southeast Asian Nations (ASEAN) Single Window in easing regional trade. The test will allow the bureau to review its procedures for the online filing and issuance of Form D of the ASEAN Trade in Goods Agreement, which Customs officials plan to roll out. The Form D system is accepted in all ports of the ASEAN member states, which serves to trim import duties under the region’s

preferential tariff treatment and to fast-track cargo processing across the region. The system will be first tried out at the Port of Manila, the Manila International Container Port, the Port of Cebu, the Ninoy Aquino International Airport, and the Mactan-Cebu International Airport.

“Once fully implemented, Philippine exporters will extensively benefit from the ease and facility in the processing of COs for their exports and the reduced transaction costs arising from paperless processing,” BoC Deputy Commissioner Agaton T. Uvero said in a statement.

Along with Form D, importers must also submit scanned copies of its ruling on the Country of Origin, export declaration, commercial invoice, and airway bill.

russian arrested for smuggling 6.5kg cocaine to thailand

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BANGKOK

cuStoMS BuLLetIN report www.customsbulletin.com

Russian man has been arrested at the customs office in Koh Samui for allegedly smuggling into Thailand 6.5 kilogrammes of cocaine worth about 26 million baht.

Kulis Sombatsiri, director-gen-

eral of the Customs Department at the Surat Thani island office, said in a news conference on Monday that Sunday’s arrest of Sergei Lelekov was made by customs and Office of the Narcotic Control Board, and Narcotic Suppression Bureau officers.

According to Mr Kulis, Silk Air staff brought two suitcases to the Ko Samui customs office for officials

to check before delivering them to a passenger at Samui Diving Resort.

The officers scanned the bags and found a strange object attached to the upper side of one suitcase.

The airline was told to tell the passenger to pick up his luggage at the customs office.

Lelekov arrived and confirmed ownership of the bags, which he said Silk Air that he lost on his trip

from Singapore to the resort island on Nov 14.

Customs had the Russian open the suitcases. Inside one was only three shirts, plus a flat package hidden under the lid. In that package were five packs of cocaine weighing altogether 6.5kg.

The Russian was charged with smuggling narcotics into the country with intent to sell.

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Two Chinese-flagged boxships collide in Taiwan Strait TAIPEI: Two Chinese-flagged general cargo ships collided off Shantou and near the Nanpeng Island in the Taiwan Strait, according to local media. One of the cargo vessels, namely Ji Xin 9, struck the other, Guang Yun, portside and caused a breach in the front side of the ship, upon which the vessel started taking on water and developed a list.

Guang Yun also suffered power loss and damage to its steering. According to the report, Guang Yun’s crew of 26 were ordered to transfer aboard Ji Xin 9, from where they boarded the Shantou Coast Guard salvage vessel. The salvage team managed to stop the water leak and commence salvage operations. Guang Yun was en route from Zhoushan to Dong Guan.

EBRD pays 53.4 million euros for minority stake in Global Ports he European Bank for Reconstruction and Development (EBRD) has paid 53.4 million euros to acquire a 10.84 percent stake in Turkish port operator Global Ports (GPH), completing the transfer of stakes on Nov. 13.

Global Investment, the parent company of GPH, said its stake had dropped to 89.16 percent due to the deal, in a written statement late on Nov. 12.

The company also stated that Thomas Josef Maier, who was recommended by the EBRD, has been appointed to GPH as a board member. The EBRD had announced in a Sept. 28 statement that it was investing in a minority stake of GPH in order to boost the company’s operations.

One of the largest port-operating companies and the largest cruise port operator in the world, GPH has eight ports in five countries in the Mediterranean and Asia-Pacific region.

“The proceeds of the bank’s investment will be used to finance the company’s future investments in ports in countries where the EBRD invests. Global Ports’ expansion abroad will promote integration among ports and create network synergies, as well as helping to further consolidate the company’s position in the international market,” said the EBRD.

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Port of Oakland luring more container volumes via logistics boost ort Commissioners at the west coast US Port of Oakland have given the goahead for the next phase of a 170-acre Seaport Logistics Complex to be developed jointly by the port and industrial real estate developer CenterPoint Properties.

The port and developer were given six months to reach an agreement on building a portion of the complex which would encompass 20 acres of port property.

It would include transload and crossdock facilities where importers could speed up the transfer of containerized cargo from ships to trains. CenterPoint would build and lease the facilities to tenants involved in international logistics.

“We’re pleased to engage with one of the most respected names in industrial development,” said Maritime Director John Driscoll, the port’s lead negotiator.

“And we’re excited to realize our vision for the Seaport Logistics Complex.

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Ports & Shipping

Tuesday, November 16, 2015

port of port Hedland increases shipping capacity A

Hutchison Ports settles with MUA, 60 jobs to go

PILBARA

cuStoMS BuLLetIN report www.customsbulletin.com

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ilbara iron ore miners could ship more ore from the region's key port if a forecast 16 per cent increase in shipping capacity is delivered over the next three years.

Modelling work over the past two years by the Pilbara Ports Authority (PPA) has identified opportunities to increase the shipping capacity in Port Hedland's channel over the next three years to as much as 577 million tonnes a year.

According to PPA, the current modelled export capacity of Port Hedland port is 495 million tonnes.

It achieved a record throughput of 447 million tonnes in the 2015 financial year, of which iron ore accounted for 440 million tonnes.

The modelling, conducted in collaboration with independent maritime engineering company OMC International, found that if a number of innovations and efficiencies at the port were implemented it could bump up the channel's capacity.

The port, which is responsible for about 30 per cent of global seaborne iron-ore trade, is used by BHP Billiton and Fortescue Metals Group and will be used Gina Rinehart's Roy Hill project when it begins shipping later this year or early next year.

Under the operating rules at the port, users have an allocated export capacity under "A and B classes" but

can also apply for extra "D class" shipping rights which are offered once their allocated capacity has been reached but further capacity remains within the rest of the port.

The increased availability at the port would not change the A and B class capacity allocated to each user but would add to the available unallocated D-class capacity.

It would be particularly useful for exporters such as BHP and Fortescue which rely on the D-class capacity to ship tonnes beyond their allocated capacity of 240 million tonnes and 120 million tonnes respectively. Once it ramps-up to full production, Roy Hill is expected to produce 55 million tonnes a year, in line with its allocation at the port.

Fortescue Metals Group chief executive Nev Power welcomed the forecast increase in shipping capacity at Port Hedland but said he believed the increase was only about half of what could be achieved.

"Briefings received by Fortescue indicate there is at least the additional capacity available again, constrained only by landside infrastructure and optimisation," Mr Power said in a statement.

"We're confident that the port capacity will continue to increase through the application of innovative technology and ongoing improvements in shipping and infrastructure efficiency, providing benefit to all port users."

A spokeswoman for PPA said the modelling was "dynamic and will continuously re-evaluate and identify further capacity in the port".

"This new technology allows PPA to interrogate the model with different variables such as channel depth optimisation, the number of tugs and marine pilots required, and potential investments in the inner harbour such as a third swing basin and further development of South West Creek," she said.

bout 60 wharfies employed by the waterfront’s third operator, Hutchison Ports Australia, will take voluntary redundancy following settlement of the company’s bitter dispute with the maritime union. Maritime Union of Australia members in Sydney and Brisbane on Monday voted to support a proposed enterprise agreement that will allow for casuals to be employed in the company’s waterfront operations.

The Australian Financial Review revealed in July that the company had intended to sack 97 of its 224-strong waterfront workforce, prompting union claims the company was trying to bust the influence of the MUA. In August, the Federal Court halted the dismissals, prompting the MUA to end pickets of the company’s terminals which started after the employees were sacked by email and text.

Warren Smith, the union’s assistant national secretary, said on Monday that the company had agreed to allow voluntary redundancies from the pool of 224 workers, resulting in about 60 workers opting to exit.

Under the “enhanced” redundancy package, departing employees will, on average, receive an ex gratia payment of $20,000 over and above their standard redundancy entitlements.

Unlike the previous agreement, the new deal will permit Hutchison to engage casual labour. Employees taking redundancy will be able to be re-engaged as casuals and seek to return to permanent employment when business improves.

Hutchison has agreed to “carry” the 35odd employees that had it wanted to sack, while the deal provides for more flexibility around rostering in order to reduce overtime.

Indonesia planning to construct deep-sea port in kijing

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JAKARTA

cuStoMS BuLLetIN report www.customsbulletin.com

n a bid to boost its ailing maritime infrastructure, Indonesia is planning to construct a deepsea port in Kijing, which is anticipated to reduce logistics costs from 23.5% of GDP to 19.2%, according to the Journal of Commerce.

The Indonesian government’s ‘Port Development Master Plan’, focuses on six main ports, including Batam and Tanjung Perak.

The proposed international deep-sea port at Kijing is being constructed in order for the country to keep abreast of increasing cargo demand, which has had an annual growth rate of 4.6%.

According to Indonesian port developer PT Pelabuhan Indonesia (Pelindo) II, around US$88 million will be allocated for the development of both Kijing and Cirebon ports. A feasibility study for the port is to be conducted by risk-assessment company BMT Asia Pacific.

Mark Yong, director of BMT Asia

Pacific, said: “The Kijing Deepwater Port is proposed to assist, improve, facilitate, and value-add export or import activities in resourcesabundant West Kalimantan.

“Kijing port will act as a catalyst for the development of West Kalimantan,” he predicted.

“The port has room to develop to support growth after 2030 and can be used as a gateway for a special economic zone.”

He added that export and transhipment cargo is normally transferred from West Kalimantan to

other Indonesia ports such as Batam or Tanjung Priok.

Indonesia recently announced the development of 22 ports nationally, in order to support the Indonesian government's plan to turn the country into a maritime axis.

In other news, the Port of Townsville in Northern Australia has a Memorandum of Understanding with the Indonesian Port Corporation to enter into a sister agreement, which seeks to facilitate knowledge exchange between both port authorities.

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Adjudication DC Asma directs Jhang ASO to release vehicle FAISALABAD: Customs Adjudication Deputy Collector Asma Hameed has issued Orderin-Original (ONO), directing Anti-Smuggling Organisation Jhang for unconditional release of the impounded vehicle, Toyota Land Cruiser. As per details, the vehicle was impounded by Jhang ASO under Section 168(1) of the Customs Act, 1969 and the Import and Export Control Act 1950 punishable under Section 156(1)89(i) of the customs act. Later, the accused person Zafar Iqbal provided the documents, which were verified through electronic data for amnesty scheme. It was found that vehicle was cleared under the vehicles amnesty scheme 2013.

CUSTOMS BULLETIN Tuesday, November 16, 2015

collector Mujtaba Memon’s Hyderabad customs seizes items worth rs 25.9m HYDERABAD

ASLAM ANJuM QureSHI www.customsbulletin.com

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he Customs Anti-Smuggling Organisation has seized huge quantity of foreign origin smuggled black tea, black pepper and dried fruits worth Rs 25.9 million during an action.

As per details, the ASO team received credible information through Model Customs Collectorate Collector Dr Ahmad Mujtaba Memon regarding the smuggling of items. Therefore, a team under the supervision of Additional Collector Umer Shafique was made to curb the smuggling activities.

The team established check post near Jacobabad and intercepted four trucks going to Sukkar, Lahore and Karachi from Quetta. The teams while searching the trucks recovered huge quantity of smuggled items.

The ASO official asked the drivers to produce any legal documents regarding the lawful import and possession of the items but they could not show any documents; therefore customs officials confiscated the items along with trucks under Section 171 of Customs Act, 1969.

After making the seizure report, the ASO team deposited the con-

fiscated smuggled goods items in Sukkur state warehouse

The ASO Hyderabad team comprising Senior Inspector Abdul

Ghaffar Shaikh, Inspector Shafi Muhammad Jamali, Sepoy Usman

Jonejo and others participated in the operation.

Customs informs SHC about missing steel bars worth Rs 650m

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KARACHI

MuHAMMAD YouSAf www.customsbulletin.com

he Customs authorities have informed the Sindh High Court (SHC) that it is conducting an audit of a private bonded warehouse being operated

by Huffaz Seamless Pipe Industries Limited after imported prime steel bars worth Rs 650 million were found missing from the warehouse.

The officials of Model Customs Collectorate Hyderabad submitted their reply to a division bench of the SHC, which is hearing a petition filed by Huffaz Seamless Pipe Industries Limited, seeking renewal of its warehouse license.

The petitioner pleaded the judges to order the customs authorities to issue it a fresh license for operating the warehouse. The court was further requested to issue directives for the authorities to

ex-bond the petitioner’s consignment of prime steel bars lying in the warehouse.

In response to the court notice, the customs officials submitted their reply to the court, stating that the licensee had imported 22 consignments containing 33699 pieces of prime steel bars of different specifications and Gardolube L6178 weighing 16 metric tons and in-bonded the consignments in the warehouse in Nooriabad area.

When MCC Hyderabad officials conducted stocktaking of the warehouse, they found almost more than 95 percent of the in-bonded goods illegally removed from the warehouse without payment of customs duty and taxes.

Only 2795 pieces of bars were found lying on the premises of the warehouse. As per calculation 31636 pieces of bars worth Rs 650 million were removed from the warehouse.

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

However, further audit of the warehouse was underway and the authorities required some time to complete the same.

Taking their comments on the record, a division bench comprising Justice Sajjad Ali Shah and Junaid Ghaffar directed the MCC Hyderabad to complete the audit within 15 days under the supervision of the Nazir of the court and submit a report before this court until November 26.