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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

Daily

Vol 1 Issue No. 172

Karachi, Wed September 2, 2015

KARACHI

AFTAB CHANNA

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he Ministry of Ports and Shipping has cancelled the illegal appointments of more than 350 employees in the Port Qasim Authority and Karachi Port Trust. These recruitments were made in the tenure of former federal minister for ports and shipping Babar Ghouri. It is mentioned here, that the administration of PQA and KPT had made illegal appointment on political grounds few

Price Rs. 14.00

years ago ignoring the merit.

Federal Minister for Ports and Shipping Kamran Michael told Customs Today that his ministry had removed more than 350 illegal appointees from the PQA and KPT. “The administration has veriSied and checked the documents of the employees and found that 350 were appointed on political grounds”, the minister added. The sources told Customs Today that these recruitments were made despite the Expenditure Wing of the Finance Division notiSication No F.7(1)Exp.IV/2011 to Karachi Port Trust (KPT), Port Qasim Authority (PQA) and Gwadar Port Authority (GPA), asking them not to make any fresh recruitment.

0.6% WHT from Oct: FBR reluctant to withdraw tax on banking transactions

ASO Hyderabad seizes foreign cigarettes amounting to Rs 1.2m

21 development, power projects worth Rs8.91b approved

Mianwali ASO impounds Toyota Hilux worth Rs 1.27m

NTC to introduce first-ever ‘Protection Policy’ to save industries: Abbas Raza

FBR has turned down traders’demand of withdrawal of 0.3 per cent | SEE PAGE 02 |

Hyderabad Customs ASO has seized 48 cartons of different brand of cigarettes | SEE PAGE 03 |

The govt has approved 21 development and power projects worth Rs8.912bi | SEE PAGE 04 |

The ASO Mianwali has impounded a non-duty paid vehicle, Toyota Hilux Surf | SEE PAGE 12 |

Chairman NTC, Muhammad Abbas Raza said that a ‘Protection Policy’ | SEE PAGE 09 |

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NAB adjourns PRSP director case till Sept 9 Wednesday, September 02, 2015

National

LAHORE: National Accountability Bureau (NAB) has adjourned the hearing of case against Director Punjab Rural Support Program Nazir Ahmed Khan in embezzlement of funds till September 9, 2015.

NAB filed five references against Nazir Ahmed Khan in which NAB states that he is involved in fraud of millions of rupees in Punjab Rural Support Program (PRSP).

Nazir Ahmed Khan also filed a appeal in the court, stating that he was not involved in any fraud activity and there was no eye witness against him.

0.6% WHT from Oct: FBR reluctant to withdraw tax on banking transactions

Seminar on Iris WHT module at Multan RTO MULTAN

IMRAN ALI

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ISLAMABAD

SHAHID MINHAS

ederal Board of Revenue has organised a seminar to introduce the new “Withholding Tax Module” of Iris in RTO Multan.

Major withholding agents and representatives, members of Multan Tax Bar and officers of RTO attended the seminar.

Withholding Tax Director General Shaukat Mahmood made comprehensive presentation regarding filing of statements in Iris. After presentation the question raised by the participants were discussed in detail and suggestions for improvement of the module were acknowledged by the Director General. At the end, Multan RTO Chief Commissioner IR thanked the Director General and all participants for sparing their valuable time to join this seminar. Meanwhile, The Model of Customs Collectorate Multan recovery branch has issued notices to Bilqees Corporation (Private) Limited for recovery of outstanding dues of Rs 237, 196. A notice has been issued against Bilqees Corporation under section 34, 33(5) &33(11) of the Sales Tax Act 1990. Now the MCC Multan will exercise their powers conferred by clause (a) of sub section 1 of 48 of the Sales Tax Act 1990.

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ederal Board of Revenue has turned down traders’ demand of withdrawal of 0.3 per cent withholding tax on banking transactions.

FBR spokesperson and Senior Member (Inland Revenue) Policy Shahid Hussain Asad, talking to media, has said that the withholding tax on banking transactions imposed on non-filers will not be removed at any cost and would be increased to 0.6 percent from October 2015. The traders’ bodies have already announced a countrywide strike on September 9 against the government’s decision. According to the All Pakistan Anjuman-eTajran will also observe protest on September 2 across the country, while they have planned to boycott banks on September 4. The business community has also decided to observe complete shutter down strike on October 7. The government had estimated to generate Rs35 billion from the withholding tax on banking transactions during ongoing financial year.

Meanwhile, Despite facing resistance from business community on various issues, the Federal Board of Revenue (FBR) has collected Rs 183 billion during August of Siscal year 2015-16 by surpassing the collec-

tion of corresponding period of 2014-15 by Rs 5 billion. As per details, the FBR has collected Rs 332 billion during Sirst two months of running Siscal year against the collection of Rs 313 billion during same period of last year by marking six percent growth.

FBR Inland Revenue-Policy (IRPolicy) Shahid Hussain Asad said that department was doing its best to collect the revenue for the state despite facing the lack of tax culture in the country.

If business community will not pay the taxes honestly, it will be dif-

Sicult for government to relieve the marginalised part of the society and to complete the development projects to make the country sustainable, Asad said, saying that Pakistan was facing budget deSicit to the tune of Rs 1.7 trillion which could be overcome by paying taxes.

SHC dismisses importer’s plea for getting 15pc sales tax exemption KARACHI

MUHAMMAD YOUSAF www.customsbulletin.com

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he Sindh High Court (SHC) has dismissed a petition against Pakistan Customs for denying the petitioner beneSit of SRO 1125(I) 2011, levying 17 percent sales tax on import of in-

dustrial raw material.

Petitioner Farrukh Mirza moved the high court, submitting that he had imported several consignments of cellulose acetate tow from December 2013 to April 2014 and got them cleared after paying duty and taxes including sales tax charged at reduced rate of 2 percent under the SRO 1125(I)2011.

He submitted that he imported the same material in

June 2014 and paid duty and taxes, and claimed the beneSit of above-mentioned SRO classiSied under PCT heading 5502.0090. The consignment was released after he made payment of duty and taxes. However, he said, the deputy collector of Research Development wing of Model Customs Collectorate detained the consignment, ordering re-examination of the consignment. After fresh assessment, the petitioner was

asked to pay 17 percent sales tax, 3 percent additional tax and 5.5 percent income tax at the import stage. He said he was denied the beneSit of the SRO and the customs staff assessed sales tax at the rate of 17 percent. The petitioner, therefore, pleaded with the court to declare that the material imported by the petitioner classiSied under PCT heading 5502.0090 comes within scope of SRO 1125(I)2011.

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FIR lodged against excise inspector in corruption case MULTAN: A First Information Report lodged against the Excise and Taxation inspector on the charges of suspected corruption. According to details, Excise and Taxation Multan Division Inspector Sheikh Sikander is found involved in compelling a citizen to pay kickbacks of Rs 200,000 in an incident. The case has been lodged against Excise Inspector Sheikh Sikander on the petition of a citizen Muhammad Akbar. The Excise and Taxation Inspector has tried to involve citizen in the fake drug case by misuse of departmental powers. After failure in the attempt he tried to trap his family in which he was exposed by a citizen through filing complaint against him.

Customs recovers smuggled goods worth Rs 15m KARACHI

AFTAB CHANNA

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he Directorate General of Intelligence and Investigation-FBR Customs Enforcement has recovered smuggled goods worth Rs 15 million from a house located at the PECHS area. In pursuance of information received by Director Intelligence and Investigations Customs Enforcement, Regional Office, Karachi, the customs authorities conducted a raid at a house at the PECHS area and recovered huge quantity of smuggled goods. The recovered goods include 142 split aircondition, 80 window air-condition, 12 washing machines and 11 full size fridge. The sources said that the customs authorities were trying establish the origin of smuggled goods either they are from Iran or Afghanistan.

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RTO-I promotes three lower rank employees LAHORE

MUHAMMAD NAWAZ www.customsbulletin.com

he Federal Board of Revenue (FBR), Regional Tax Office (RTO-I) has promoted three lower rank employees to next grade on seniority basis. Sources told Customs Today that Regional Tax Office has issued a notification for promotions of three employees namely Muhammad Boota, daftri in BS-4, Nimat Masih mali in BS3 and Ijaz Ahmed naib qasid in BS-3. A final notification in this regard is issued by the Commissioner Inland Revenue Jahangir Ahmed. The above said employees are promoted after the completion of twenty year service on permanent basis, copies issued to Chief Commissioner Inland Revenue Regional Tax office-I, Chief Commissioner Inland Revenue Zone-I, AGPR, Bill clerk and others. Regional Tax Offices promoting all those lower ranks employees step by step who are serving from long time.

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Wednesday September 02, 2015

National

Hyderabad ASO seizes foreign cigarettes worth Rs 1.2 million HYDERABAD

ASLAM QURASHI

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yderabad Customs ASO has seized 48 cartons of different brand of cigarettes approximately worth Rs 1.2 million during a raid .

Sources told Customs Today that the ASO team, following the instructions of Collector MCC Hyderabad Dr Ahmed Mujtaba Memon, conducted raid in different localities of the region to curb smuggling.

After these instructions a team of Customs ASO under the supervision MCC Hyderabad Additional Collector Omar ShaSique raided Bolan Mail Express at Kotri Railway Station and seized 48 cartons of foreign origin cigarettes. These cartons were being smuggled from Quetta to Hyderabad.

OfSicials told Customs Today that a seizure report has been prepared and 48 cartons of foreign origin cartons of various of brands already deposited to the Hyderabad State Warehouse. The ASO team comprising deputy superintendent Syed Saleem Shah and which took part in the operation Meanwhile, The Customs AntiSmuggling Organization (ASO) Hyderabad has seized 30 cartons of cigarettes with Suzuki pickup approximately valued at Rs 3.1 million involving duty/taxes to the tune of Rs 2 million.

As per details, the ASO teams, fol-

lowing the instruction of Collector Model Customs Collector Hyderabad, Dr Ahmed Mujtaba Memon, conducted various raids in the region to curb smuggling.

An ASO team, under the supervision of Additional Collector MCC Hyderabad, Omer Shafique, comprising Deputy Superintendent Syed Saleem Shah and other staff, intercepted a unregistered vehicle near City Gate, Hyderabad and re-

covered 30 cartons of foreign origin

ASO under the supervision MCC Hyderabad Additional Collector Omar Shafique raided Bolan Mail Express at Kotri Railway Station and seized 48 cartons of foreign origin cigarettes.

More tax on services sector harming economy

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he government must reconsider 8 percent withholding tax on turnover of the services sector having 53 percent share in GDP lest it falls apart hurting international trade and fanning unemployment.

Tax should always be on income and not on the revenue which is against the philosophy of the taxation as some companies have large

turnover but small proSits while others have small turnover but enjoy windfall, said President Pakistan Businessmen and Intellectuals Forum (PBIF) and former provincial minister Mian Zahid Hussain. Talking to a delegation led by Chairman of Pakistan International Freight Forwarders Association (PIFFA) Asim Sayeed Khan, he said that the tax seems unnatural which will hurt imports, exports, revenue generation and job situation Mian Zahid Hus-

sain said that the controversial taxation has been hurting sectors like IT, certiSication, public relations, media management, advertising, marketing, telecom, ISPs, clearing agents, Sleet operators, couriers, security providers, outsourcers and software developers etc. Services sector is hard pressed by the development pushing many to close their businesses which will discourage investment in the critical sector paving way for its breakdown, he observed.

cigarettes.

The ofSicial asked the driver to produce any documents showing the legal possession or import of the goods but he could not show any documents on which customs seized the items following the prevailing customs law.

After preparing the seizure reports, the ASO team deposited the conSiscated cigarettes and vehicle in Hyderabad State Warehouse.

Rise in taxation makes banks face 10 pc QoQ earning decline ise in effective taxation of 50.7 percent due to imposition of super tax of 4 percent has made the banking register a decline by 10 percent QoQ, It has been learnt. On QoQ basis, earning went down by 10 percent QoQ to Rs 42.54 billion in 2QCY15 from a PAT of Rs 47.12 billion in 1QCY15. The QoQ decline primarily cause by higher provisions and rise in effective taxation of 50.7pc due to imposition of super tax of 4pc, it was said.

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Lucky Cement to acquire permit for extracting limestone mine Wednesday, September 02, 2015

Business

LAHORE: The country’s biggest cement manufacturer is set to acquire a mine permit to extract limestone in Punjab.

According to Punjab’s Mines and Minerals Department Secretary Arshad Mehmood, the local administration has approved the deal and now the Lucky Cement will get a limestone quarry for a cement plant in Punjab. Arshad, while talking to Bloomberg, said that an agreement is expected to be signed in the next few days.

Pakistan Post earned Rs 157 billion in 5 years thru insurance covers

MULTAN

ISLAMABAD

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akistan Post generated Rs156,711.33m during the last five years (2009-14) through its insurance cover for customers. Pakistan Post is constantly gaining profit under this cover showing an average increase of Rs3 to 4 million annually. According to the official statement, the Pakistan Post earmarked revenue of Rs34,495.495m during

Textile exhibition secures $300m orders in 3 days

2013-14 as compared to Rs31,367.911m in 2012-13, Rs27,536.721m in 2011-12, Rs25,980.307m in 2010-11 and Rs20,427.233m in 2009-10.

The fund was started in 19791980 with an annual revenue of Rs380.196m which gradually increased and now they are earning almost Rs35m every year under this scheme, officials told APP here on Monday. Giving details, they said, in 2013-14 they issued 22,767 new policies including 21,990 civilian and 777 defence policies incurring sum assurance of Rs. 7,256.608 million. On June 30, 2014, PP has a total of 415,561

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he 14th International Textile Asia Exhibition has successfully secured$300 million orders in just three days. The exhibition is being organised by the Pakistan Readymade Garments Manufacturers and Exporters Association in collaboration with Ecommerce Gateway Pakistan at Expo Centre Lahore. Addressing the concluding ceremony, PRGMEA Chairman Ijaz Khokhar said that around 55,000 people visited the exhibition during first two days.

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gear up efforts to finalise the National Water Policy expeditiously keeping in view sensitivity of the water issue. He also stressed the need for involving engineering universities in formulation of water policy.Ahsan said that water resource management is need of hour because of frequent floods due to climate change.

“Whenever the issue of water rights is raised at international forums, the neighbouring country resorts to arguments that Pakistan can’t manage its surplus water,” he pointed out. He said that water issue is of utmost importance for future of country.

21 development, power projects worth Rs 8.91 billion approved

LAHORE

CUSTOMS BULLETIN REPORT

policies including all new and old customers among which 411,012 are civilian clients while the defence clients are 4,549 with total sum assurance of Rs. 61,475.233 million.

Meanwhile, With the aim to resolve water issues in the country, Federal Minister Planning, Development and Reform Ahsan Iqbal has urged the Ministry of Water and Power to finalise the national water policy in three months.

The minister, while chairing a meeting of the Central Development Working Party (CDWP), said that all relevant government institutions and stakeholders should

ISLAMABAD

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he government has approved 21 development and power projects worth Rs8.912 billion.

The projects were approved during the Central Development Working Party (CDWP) meeting, which was chaired by Federal Minister for Planning, Development and Reform

Ahsan Iqbal. The meeting approved Rs1413.01 million for the transmission of electricity from 1320 MW Imported Coal Based Power Plant near Sahiwal.

A project of Land acquisition for Converter Stations & Grounding Stations at both ends of 600kV HVDC Transmission Line from Matiari to Lahore (CPEC Project) worth Rs2,353.00 million was also approved. Land Acquisition for converter stations and grounding stations at both ends of 600 KV HVDC Transmission Line from Port Qasim to Faisalabad to be completed at the

cost of Rs.2476.50 million was also approved. The Acquisition of Land for Railway Container Yard, Station and Railway Line from Sea Port to Coastal Highway at Gwadar worth Rs1,332.00 million got approved.

The project envisages acquisition of 412 acres of land for railway container yard from Gwadar Port to Gwadar Railway Container yard which will have capacity to handle about 500 Railway Bogie type freight wagons. Similarly Rs2,190 million were approved for the Rehabilitation & Extension of Concrete Sleeper Factories at Khanewal & Sukkur.

TEVTA to provide jobs through website CUSTOMS BULLETIN REPORT echnical Education Vocational Training Authority will provided jobs through online in the province of Punjab after launching website of TEVTA. Those who have passed out from TEVTA can submit their particulars for online website developed by Punjab TEVTA. This information system is providing key information on Punjab’s labour market including market trends, skill training opportunities in different trades and technologies, data of passing out students and job seekers as well as vacancies for technical persons in the industry.

Former president of MCCI Multan Khawaja Muhmmad Usman said that the facility of free registration is available for all the students of technical and vocational institutes, job seekers and employers on this web portal so that unemployed skilled youth may find suitable job opportunities.

He added that this web portal will also provide information on employment and unemployment rates in different sectors of industry besides other useful economic data. At present, UK, Korea, Malaysia, Philippines and Sri Lanka are using labour market information systems.

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Silkbank’s deposits surge by Rs 13.8 billion in six months KARACHI

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ilkbank’s deposits have increased by Rs13.8 billion in Sirst six months of the current calendar year against the deposit base of Rs82.5 billion of same period last year.

According to the Silkbank Limited Board of Directors, total asset base grew by an impressive Rs16 billion over the period. The Bank continued to improve the CASA share of deposits and successfully brought down its cost of funds. Nonfunded income also reSlected an impressive growth of 36pc. The Bank took aggressive provisioning to further clean the Balance Sheet.

Post this one-off provisioning, Silkbank posted an after tax loss of

Rs. 95.629 million for the period ended June 30, 2015.

In 2014, Silkbank announced the issuance of Right Shares worth Rs. 10 billion and the process will be completed by September, 2015.

Silkbank is backed by strong international sponsors, which include IFC (World Bank Group), Nomura European Investments, Bank Muscat and Sinthos Capital led by Shaukat Tarin.

Meanwhile, As many as 52 Sindh

ofSicials have been arrested for corruption in two months during the provincial government’s anti-corruption campaign.

Anti-Corruption Establishment (ACE) Chairman Mumtaz Shah revealed this during an important meeting with Chief Minister Qaim Ali Shah at the CM House Mumtaz Shah said that the ACE also registered 72 Sirst information reports (FIRs) and opened 209 inquiries for corruption, embezzlement and mis-

appropriation of government funds.

He further said that the FIA and NAB have started sending him inquiries into land, revenue and local government matters such as illegal and double land allotments, bogus allotment Siles and such other forgeries and criminal acts. Giving details of the FIRs, inquiries and arrests the chairman ACE said that from July 22, 2015 four raids were conducted in Karachi South and arrested three ofSicials and registered four FIRs.

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MULTAN IMRAN ALI www.customsbulletin.com

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he Model Customs Collectorate (MCC) Multan has been assigned Rs 45.357 billion revenue collection target for the Siscal year 2015-16, while the Collector MCC Multan Sarfraz Ahamd Warraich is optimistic about achieving 100 percent target.

The FBR has assigned Rs.12. 87 billion target under the head of customs duty which is almost 4.6 less than the Rs 13.49 billion target for last Siscal year 2015-16. MCC Multan had collected Rs 9.149 billion last year.

OfSicials told Customs Today chief collector has reduced the customs duty collection target keeping in view the decreasing trend in the prices of the petroleum products. They added that MCC Multan has received a big chunk of customs duty on the import of high

speed diesel and the low fected it badly.

In wake of sales tax, it ha Rs 31.8 billion target fo which is 13 percent mo responding period as i million in Siscal year 20 Multan had collected R during last year.

However, chief collecto million target in terms duty (FED) for Siscal yea it was Rs 335 million du ding period. The majo FED is palm oil cleare Multan.

On the other hand, M been allotted revenue ta of Rs 445 million in wak tax that is 31 percent m target for the last year million. It had exceede target by 17 percent.

Collector Sarfraz Ahma

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w prices have af-

as been assigned for running year ore than the corit was Rs 28.10 014-15. The MCC Rs 28.20 billion

or has set Rs 242 of federal excise ar 2015-16 while uring corresponor source of the ed through MCC

MCC Multan has arget to the tune ke of withholding more than the set as it was Rs 336 ed the last year’s

ad Warraich told

Customs today that he will make every possible effort to achieve the target, adding that, “We will design short term plans to make bring changes overtime in order to realise the target.

Meanwhile, The Model of Customs Collectorate Multan recovery branch has issued notices to Bilqees Corporation (Private) Limited for recovery of outstanding dues of Rs 237, 196.

A notice has been issued against Bilqees Corporation under section 34, 33(5) &33(11) of the Sales Tax Act 1990.

Now the MCC Multan will exercise their powers conferred by clause (a) of sub section 1 of 48 of the Sales Tax Act 1990.

The Model of Customs Collectorate Multan have issued directions to all collectorates that on the clearance of their any consignment from Pakistan the customs duty, federal excise duty, sales tax and income tax authorities to deduct the taxes outstanding taxes from them with immediate effect.

Wednesday, September 02, 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

Need to boost FDI

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akistan stands at 128th place out of 189 economies in the world Ease of Doing Business index. Among the emerging economies, Ghana stands at 70, receiving our $4 billion direct foreign investment in 2014 and China stands at 90, attracting $128 billion.

Foreign investment plays a pivotal role in economic development of a country by not only bringing business and technology, but also provokes local trade and business activities. It also sends a positive message to the world that the country is a promising destination for doing business. Every successive government in Pakistan has tried its best to attract foreign investment but failed to pinpoint the bottlenecks in the way of the economic development.

Pakistan has always remained a promise land for multi-national companies from the early years of independence to today. However, the energy sector – from exploration of oil and gas to electricity generation — remained the major beneficiary of the foreign investment. There are various fields of economy where foreign companies can invest and get huge profit margin such as transport and communication sectors. A bullet train from Lahore to Karachi can earn billions of dollars annual profit while establishment of tax free zones in industrial cities can also attract massive foreign investment.

According to news reports, various Chinese companies were ready to invest billions of rupees in textile sector as well as in coal electricity generation projects, but red tape and commission mafia foiled their plans. Despite grim situation of the country’s business climate, a large number of multinational companies are already operating in Pakistan, showing the fact that Pakistan is better destination than India and Bangladesh which stand at 140 and 170 respectively. At a time the government is building massive infrastructure in Pakistan in the form of Pak, China economic corridor, a special policy framework should have to be devised to set industrial cities along the corridor and motorways.

The establishment of Pakistan stock market will also attract foreign investors whereas industrial cities of the country, like Faisalabad, Gujranwala, Sialkot, Hyderabad, Peshawar and Quetta should be attached to it. The small investors in these cities deserve opportunity to invest in the stock market. Apart from giant multinational companies from France, United Kingdom, US, Japan, Norway, Germany and Netherlands, small investors in these countries also seek opportunities to invest in foreign countries and Pakistan can be presented as the destination of choice. The formation of a national coordination council is the need of the hour, involving all the political leadership of the country.

Aftershocks of world recession T

LAHORE

DR AFTAB AFZAL

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

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

tralize the adverse effects of the global recession.

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

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

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

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

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

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

The tax to GDP ratio in Pakistan is

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

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

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China manufacturing PMI dips to 49.7 in August BEIJING: China’s factory activity continued to lose steam in August, suggesting the world’s second largest economy faces prolonged downward pressure, official data showed Tuesday.

China’s manufacturing purchasing managers’ index (PMI) came in at 49.7 in August, down from 50 for July, according to data released by the National Bureau of Statistics and the China Federation of Logistics and Purchasing.

The August reading was the lowest since August 2012.

A reading above 50 indicates expansion, while that below 50 represents contraction.

Kyrgyzstan to establish strong economic ties with Pakistan yrgyzstan wants to establish strong trade and economic relations with Pakistan and is ready to sign MOUs in textile and pharmaceutical sectors.

These views were expressed by the Charge d’ Affairs of Kyrgyzstan Sagynbek Ibraev while speaking at the Lahore Chamber of Commerce and Industry. The LCCI President Ijaz A. Mumtaz, Vice President Syed Mahmood Ghaznavi, former president Mian Muzaffar Ali and Executive Committee Members also spoke on the occasion.

The diplomat said that Pakistan is an important country of South Asia and could help Kyrgyzstan to establish relations with Central Asian States.

He said that in a bid to promote twoway trade, an exhibition of Pakistani textile and pharmaceutical products could be arranged in Kyrgyzstan. It would attract attention of Kyrgyz customers to the high quality and vast verity Pakistani products.

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SCCI condemns Indian firing at LoC azal Jilani, President Sialkot Chamber of Commerce and Industry strongly condemned the barbaric violation of ceasefire

by India on working boundary near Sialkot. He said that the Indian government is using cheap tactics to disturb the peace of the region but they should know that Pakistan is showing restraint otherwise the reaction would be disastrous for India.

Expressing his displeasure Fazal Jilani said that the Modi government has failed to deliver on political fronts and is trying to worsen situation at borders with Pakistan, to divert attention of its people and the world from its internal failures.

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Wednesday September 02, 2015

Chambers

NTC to introduce first-ever ‘Protection Policy’ to save industries: Abbas Raza C

KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

hairman National Tariff Commission (NTC), Muhammad Abbas Raza said that a ‘Protection Policy’ will be introduced for very first time in which relevant laws and regulations will be defined to safeguard the interest of local industries. Speaking at a meeting during his visit to the Karachi Chamber of Commerce and Industry (KCCI), chairman NTC added that this Protection Policy will have a pre-defined timeline, starting from the concerned industry’s internship to maturity period.

Chairman Businessmen Group and Former President KCCI Siraj Kassam Teli, President KCCI Iftikhar Ahmed Vohra, Senior Vice President KCCI Muhammad Ibrahim Kasumbi, Vice President KCCI Agha Shahab Ahmed Khan, Former President KCCI AQ Khalil and KCCI Managing Committee members were present at the meeting.

Terming the Free Trade Agree-

ment (FTA) with China as a ‘very serious’ issue, he opined that FTA with any country should be based on reciprocal business conditions and should be mutually advantageous for both the countries while the individual needs of the industry should also be kept in mind prior to finalizing an FTA. He advised the business and industrial community to be more aggressive and proactive in sharing their opinion over

signing of FTAs otherwise the forthcoming FTAs with Turkey, Thailand and Korea may also create similar issues as being faced by the business community because of the FTA with China.

Referring to next round of negotiations on Pak-China FTA, NTC Chairman informed that the Ministry of Commerce has asked NTC to provide a list of those items which should be excluded from Pak-China

ICCI asks US to ease policies for promoting bilateral trade

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ISLAMABAD

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slamabad Chamber of Commerce and Industry (ICCI) has said that US should remove all trade barriers including strict visa conditions for promoting bilateral trade with Pakistan up to real potential.

This was stated by ICCI President Muzzamil Hussain Sabri when Beney J. Lee, Desk OfSicer for Pakistan in Washington, Department of State, USA along with David Ryan Sequeira Economic OfSicer and Nasir Hamid Rao Economic Advisor, Embassy of US in Pakistan visited ICCI to learn about the bottlenecks restricting trade potential between the two countries, besides discussing the ways and means to further improve bilateral trade between Pakistan and USA. Speaking at the occasion, Sabri

also highlighted the various bottlenecks being faced by the Pakistani business community in doing trade with USA. He said Pakistan has suffered huge economic losses due to Sighting war against terrorism and the best way for US to compensate it was giving it easy market access. He said many Chinese investors were taking increased interest to Pakistan which reSlected its great economic potential and urged that US should also encourage its investors to visit Pakistan for exploring business opportunities. He said the visit of US investors to Pakistan will also send a positive signal to other foreign investors. He said chambers of commerce of both countries should sign memorandum of understanding of cooperation and both countries should strengthen cooperation between various sectors including marble, textiles, pharmaceutical, IT, leather

and others to improve bilateral trade.

However, Beney J. Lee, Desk OfSicer for Pakistan in Washington said US was encouraging its private sector to partner with Pakistani counterparts for investment and joint ventures. She said Pakistan and US have good potential to enhance cooperation in energy, agriculture and education sectors and stressed that both governments should facilitate their entrepreneurs to strengthen collaboration for achieving mutually beneSicial outcomes. She said US was ready to help Pakistan in innovative researches in the Sields of education, agriculture and other sectors.

She said both countries should focus on developing sector-speciSic cooperation between their private sectors that would help in increasing two-way trade. She said US was interested in capacity building of Pakistani entrepreneurs through trainings.

FTA. Therefore, around 800 items have been identiSied after thorough review under proper criteria which, NTC believes, should be removed from the FTA. Abbas Raza further stated that four trade laws pertaining to National Tariff Commission have been formulated and will be implemented any moment after the signing by President of Pakistan.

“Out of these four trade laws, the law pertaining to NTC structure has also been revised and the number of NTC members has been raised from the existing two to four members and a Chairman”, he added. He said that under the new laws, the functioning of NTC has also been enhanced with focus on assistance to domestic industry, improving competitiveness of domestic industry, rationalization tariff structures and removal of tariff anomalies etc. while changes have also been introduced in the existing Anti-dumping laws. Under the new changes in law, raw materials solely used for export purposes which are included in DTRE will not be subjected to antidumping duty, he added.

Delegations from US, Turkey to participate in flour millers’ conference eventh Pakistan Flour Milling Conference and Exhibition will be organised on September 5 in the provincial capital. Former Pakistan Flour Millers Forum (PFMA) chairman Dr Bilal Sufi and the chairman of the organising committee of the conference and exhibition said that the event will be held under the title of “Innovation and modern technology in flour industry.” Dr Bilal Sufi said that distinguished flour millers from all over Pakistan including technicians, agricultural experts and companies from USA and Turkey will be participating. The registration of moot has been opened by the organizing committee while the Punjab Chief Minister Shahbaz Sharif and Food Minister Bilal Yssin are likely to be present in the inaugural session.

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BD police to keep vigil on porous border to prevent smuggling Wednesday September 02, 2015

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DHAKA: From Anisur Rahman Dhaka, Bangladesh today asked police and border guards to keep a sharp vigil on its porous border with India to prevent smuggling of raw hides of sacrificial animals during next month’s Eid-ul-Azha festival as the country seeks to harness its booming leather industry.

“We have asked today all concerned — the law enforcement agencies and the businessmen - to remain alert against smuggling of raw hides during the Eid-ul-Azha,” home secretary Mozammel Haque Khan told PTI.

Sri Lanka’s tea export revenue falls to Rs 16.9 billion in July

US Customs seizes cocaine, marijuana at El Paso Port

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S. Customs and Border Protection OfSice of Field Operations ofSicers working at the El Paso Port of entry made six drug seizures Thursday. They seized 10.55 pounds of cocaine in one seizure and 513 pounds of marijuana in an additional Sive seizures. “CBP ofSicers remain vigilant knowing that smugglers are consistently attempting to evade the inspection process,” said Beverly Good, CBP El Paso Port Director. “OfSicer expertise, tools, technology and canine support all play a role in stopping these drug loads.” The cocaine seizure was made just before 5:00 p.m. at the Bridge of the Americas international crossing. A single female

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ri Lanka’s tea exports further contracted in July, especially in the Russian and Middle Eastern markets, amid the “go slow campaign” carried out by estate workers during the month.

According Forbes and Walker Tea Brokers, export volumes totalled 28.7 million kilos compared to 29.8 million kilos year-on-year(yoy) while revenue fell to Rs.16.9 billion from Rs.19.1 billion yoy.

“Bulk tea has shown a growth yoy whist tea in packets and tea in bags have shown a fairly signiSicant decrease,” the report said.

Bulk tea export volumes increased to 13.2 million kilos at Rs.510.82 per kilo from 10.91 million kilos at Rs.572.17 per kilo yoy.

Tea in packets volumes fell to 12.8 million kilos at Rs. 552.96 per kilo from 15.65 million kilos at Rs.596.76 per kilo while tea bag vol-

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umes fell to 2.09 million kilos at Rs.1,118.33 per kilo from 2.56 million kilos at Rs. 1,063.22 per kilo yoy. Export volumes for the period from January to July decreased to

180.2 million kilos from 187.2 million kilos yoy while revenue declined to Rs.107.6 billion from Rs. 123.2 billion yoy with a similar trend to July.

HK Customs investigating fake drug’s factory bust

ong Kong Customs are following up a mainland operation that busted an unlicensed Nanjing factory producing fakes of a popular “magic” Chinese drug for those suffering from strokes. The drug was made for distribution in Guangdong and Hong Kong with police estimating sales to have topped 2.78 million yuan (HK$3.34 million). It was not immediately clear if any of the fake drugs were circulating in Hong

Kong. Nanjing police went into action after receiving a report of machinery noises coming from an abandoned factory in the Jiangning district. The police were also informed by the Ministry of Public Security that a Hong Kong company may be involved in drug manufacturing in Nanjing. The factory, which was found to be producing counterfeit products labeled “An Gung Niu Huang Wan,” had neither a business license nor permits for the produc-

tion of drugs. The person in charge, surnamed Hu, later confessed that he had been collaborating with a trade company manager surnamed Cui to produce the drugs. “The drugs I produce surely have no problem for I know how to make them,” Xinhua Daily quoted Hu as saying. “I purchased the raw ingredients from an Anhui market and they are processed here into powder, baked and Silled into pills before being sent to Hong Kong.”

driving a 2004 Toyota 4Runner entered the port from Mexico and provided a negative declaration. A CBP ofSicer working at the primary inspection booth noted that the driver was nervous so he selected the vehicle for a secondary exam. CBP ofSicers scanned the vehicle with the ZPortal x-ray system and spotted an anomaly in the engine area of the car.

CBP ofSicers continued their exam and located one large cocaine-Silled bundle inside the engine intake manifold. The drugs weighed 10.55 pounds. CBP ofSicers arrested the driver, 37-year-old Romana Araceli Hernandez Lara of El Paso, Texas. She was turned over to U.S. Immigration and Customs Enforcement Homeland Security Investigations agents to face charges associated with the failed smuggling attempt.

Nepalese Customs initiates inquiry against 30 non-compliant employees

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he Department of Customs (DoC) has begun proceedings against 30 of its employees stationed at Tribhuvan International Airport (TIA) for being absent from their posts during a check on Saturday. DoC Director General Shishir Kumar Dhungana said it took action as their negligence had caused suffering to travellers passing through the airport.

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“The absence of three-four employees who were supposed to be manning the walk-through X-ray area had caused inconvenience to air travellers,” he said. Among the customs employees who face action, two are gazetted officers and the rest non-gazetted officers. According to Dhungana, the department will take action against them under Civil Service Act 1993.

Oman Customs foils cigarettes’smuggle bid

ustoms officials at the Wadi Al Jizi border post foiled an attempt to smuggle illegal cigarettes into the Sultanate. Officers found 132 cartons of cigarettes hidden in different parts of the vehicle. The driver was de-

tained and police are proceeding with investigations. Two Omani citizens were arrested by the Directorate General of Inquiries and Investigations in North Al Batinah Royal Oman Police for auto theft of a vehicle in Liwa.

Malaysian court awards death to Thai woman for smuggling cocaine

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30-year-old Thai woman was sentenced to death by a High Court here the other day for smuggling in 80 pills of cocaine or 689.1grams, two years ago. Chonmanee Laphathanawat appeared calm when Judicial Commissioner

Datuk Nordin Hassan handed down the sentence.

Nordin said the accused’s defence had failed to prove that she was forced to smuggle the drugs into the country. Chonmanee was accused of smuggling in the drug from Brazil to Malaysia via Penang International Airport on February 2013. She had smuggled in the cocaine by swallowing 78 pills and in-

serting 2 pills into her private parts.

Deputy public prosecutor Amir Hamzah Othman prosecuted while Chonmanee was represented by a court appointed lawyer.

Meanwhile, Police have arrested four people including three Nigerians suspected to be involved in a drug trafficking syndicate in three separate raids here the other day.

In the operation conducted by

the Special Tactical Intelligence Narcotics Group (STING), 58 pieces of what was believed to be Marijuana worth over RM500,000 were seized. The suspects were picked up in Puchong, Cheras and the Mentari Court apartment in Petaling Jaya.

Inspector-General of Police Tan Sri Khalid Abu Bakar revealed this in his tweet through his Twitter ac-

count at 9.34pm last night. He tweeted “Syabas STING @PDRMsia t’kap 4 org (3 Nigeria) rampas 58 ketul ganja bernilai lebih 500k di Puchong, Cheras dan Mentari Court PJ. Go PDRM Go”. “Congratulations STING @PDRMsia arrested 4 people (3 Nigerians) seizing 58 pieces of Marijuana worth more than RM500k in Puchong, Cheras and Mentari Court PJ.Go PDRM Go”.

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

French government deal seeks end to Calais port dispute three-way deal backed by the French government late on Monday raised hopes of resolving a long-running dispute that has hampered ferry traffic at Calais and disrupted cross-Channel rail services.

The agreement was reached after eight hours of negotiations, a day after protesting French seamen carried out a six-hour blockade of the key port.

In a statement, the French transport ministry said that under the deal, 402 out of 487 jobs would be saved at the ferry firm Scop SeaFrance.

Scop SeaFrance had been operating the Calais-Dover route under the corporate name of MyFerryLink until it went out of business.

Their protests caused havoc on both sides of the Channel, with British police closing off sections of motorway to park some 3,000 trucks waiting to board ferries to France at Dover.

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Possible merger of Cosco Group-China Shipping Group may not bring much joy

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Wednesday September 02, 2015

Swaziland plans to build shipping port worth $3 billion

Australian shipping firm urges Coalition to scrap planned changes to labour laws

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he chairman of an Australian shipping company and a longtime member of the Liberal party has slammed the Coalition’s planned changes to shipping laws as directly contradicting Tony Abbott’s policy focus of “jobs and growth”.

Peter Cadwallader, chairman of the Australian-owned Intercontinental Shipping Group (ISG), said the laws – which wind back wage protections and preferences for Australian crews – would make his company “completely uncompetitive” and urged the government to scrap the changes.

Cadwallader said he had been a member of the Liberal Party for nearly 50 years and warned the government that Australian jobs and tax revenue were at stake. He urged the government to scrap the bill.

He told Guardian Australia he would directly lobby his local MP, Tony Abbott, to drop the changes after he delivered a scathing submission to the Senate committee on rural, regional affairs and transport, which is examining the legislation.

His company is the owner of bulk carrier ICS Silver Lining which provides freight services to major mineral processing companies, among others, and operates all year around the Australian coast.

he Government of Swaziland, an impoverished African nation with no coastline, has backed a plan to build a shipping port which will cost an estimated US$3 billion. The scheme follows the completion of an 'international' airport, built in a wilderness that cost an estimated US$250 million to construct.

Fewer than 150 passengers Sly out of the King Mswati III Airport at Sikhuphe on any given day. Swaziland is ruled by King Mswati who is sub-Saharan Africa's last absolute monarch. Political parties are banned from taking part in elections and the King appoints members of the government. The airport, dubbed a 'vanity project' by aviation experts and the port are part of the King's effort to turn his kingdom into a 'First World' nation by 2022. At present, seven in ten of the 1.3 million population live

T in abject poverty with incomes of less than US$2 per day. Swaziland has the highest rate of HIV infection in the world and this year it is estimated that at least one-third of the population will need international food aid to avoid starvation. Meanwhile, the King has 13 palaces, a private jet aircraft and Sleets of BMW and Mercedes cars, which he shares with his 14 wives and vast royal family. The plan is to build a 26-kilometre canal from the Mozambican sea to Mlawula, where the port will be constructed on 15 to 20 hectares of land. Media report it will cost an estimated E30

billion (US$3 billion). The plan was conSirmed by Minister of Commerce, Industry and Trade Gideon Dlamini.

He said, 'At government level, we are fully behind the project and we are giving it undivided support. The project owners had done presentations to Cabinet and we interrogated it and found that it is a wonderful one. Following Cabinet's realisation that the project is good and viable, Prime Minister [Barnabas] Sibusiso Dlamini then tasked the different concerned ministries to start working together with the project owners straight away.'

Cairns port proposal 'could endanger reef'

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nvestors who have been locked in suspended mainland shipping stocks should think twice about the potential merits of a merger.

It is very easy to jump to the conclusion a marriage between Cosco Group and China Shipping Group, the country’s two largest shipping conglomerates, will be a gleeful re-run of the train makers’ unification which earned shareholders a great deal. Cosco and China Shipping have five listed subsidiaries in Hong Kong and six in Shanghai, Shenzhen and Singapore – a situation that makes it more complex than the China CNR-China CSR merger.

The 11 stocks entered a trading suspension en masse from August 10.

Three of them are considered flagships, namely China Cosco Holdings, China Shipping Container Lines (CSCL) and China Shipping Development.

Ports & Shipping

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he Great Barrier Reef could be at risk if the Queensland government acts on a parliamentary committee's recommendation and declares Cairns a "priority port".The committee reviewed the Palaszczuk government's Sustainable Ports Development Bill, which

aims to protect the reef coast by stopping new ports being built.

But its recommendation to instead declare Cairns a "priority port" could thwart this goal, conservations argue.

"This recommendation would make Cairns an industrial port and could lead to millions of tonnes of dredging," Australian Marine Conservation Society's Gemma Plesman said. There are now four existing

priority ports - Gladstone, Hay Point/Mackay, Abbot Point and Townsville.

Naming a Sifth would effectively break a promise made to the World Heritage Committee to protect the reef, WWF campaigner Richard Leck agreed. However, the report notes the unanimously devised recommendation only be adopted on proviso the environmental effects on the reef are considered Sirst.

Work on Port Tampa Bay warehouse to start next year

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fSicials with Port Tampa Bay announced Monday that construction on a 130,000square-foot refrigerated warehouse will begin early next year.

The $19.1 million warehouse will employ 50 full-time workers and up to 200 part-time workers. OfSicials

expect it will open in November 2016. The Tampa Port Authority Board recently approved a 27-year lease to Port Logistics Tampa Bay I Inc. for the 13.7 acres where the facility will be developed on Hookers Point at Port Tampa Bay in downtown Tampa. The authority has brought on Atlanta-based BatsonCook Co. as contract manager for the project. Port Logistics will be responsible for interior improvements

and all terminal operations. The facility will receive, label, package and distribute temperature-controlled food from foreign ports and will operate nearly around the clock. Products will include perishable goods, fruits, vegetables, pharmaceuticals and any other products that require temperature control. "In our Sirst year of operation, we expect to accommodate 100 vessels with 400,000 pallets, along with 70 to 80

trucks per day entering and leaving the facility," said developer George Livingston, a principal in Port Logistics. Tampa's port was known as a thriving hub for imported fruit until the business dried up in the 2000s.

The last fruit importer left in 2009, and the port tore down its old fruit warehouses. Port Manatee took over as the region's hub for imported fruit, though Port Tampa Bay ofSicials have been working to change that.

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ANF foils bid to smuggle heroin to Sharjah, arrests suspect ISLAMABAD: The Anti-Narcotics Force (ANF) has foiled an attempt of smuggling heroin to Sharjah, UAE, from Benazir Bhutto International Airport Islamabad and arrested the accused on the spot.

The ANF recovered 100 capsules from the stomach of a passenger, Mujahid Khan.

Sources added that ANF team during checking process of passengers of a private airlines inquired from the accused as the team became doubted on his activities.

Wednesday, September 02, 2015

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Customs to install trackers on US reverse cargo containers KARACHI

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he Pakistan Customs has decided to install trackers on the containers of the United States reverse cargo aimed at ensuring that the containers and goods do not get pilfered on the way to Afghanistan. The sources told Customs Today that the Customs would soon start installing chips on the containers of the US reverse cargo in a view to avoid mega scams that happened in the past. With the installation of the trackers, the movement of the containers could easily be monitored inside the ports vicinity and all the way from Karachi to Afghanistan.The customs ofSicials would check the trackers at ports and then the checking process would continue at Hyderabad dry port, then Quetta and Torkham border, sources added.

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

Mianwali ASO impounds Toyota Hilux worth Rs 1.27 million FAISALABAD

NAEEM SHEIKH

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he Customs Anti-Smuggling Organization (ASO) Mianwali has impounded a non-duty paid vehicle, Toyota Hilux Surf worth Rs 1.27 million involving duty/taxes amounting to Rs 877,406.

ASO Mianwali which falls in Jurisdiction of Model Customs Collectorate Faisalabad Additional

Collector Muhammad Asim Awan received credible information regarding the smuggled vehicle and formed a team to hold the vehicle.

The ASO team following the directions intercepted a Toyota Hilux Surf bearing Registration No. BC7299 near Musa Khail Pindi Road, Mianwali and asked the driver namely Naeem Khan to produce the documents showing the legal import of the vehicle.

But the driver could not show any documents on which the customs ofSicials took the vehicle into custody and served notice on accused person.

The ASO team comprising Inspector Azhar Hussain Jafri, Nazar hussain Jaffri, Constable Ghulam Mohyuddin, Faiz Ahmed and others participated in the raid.

Meanwhile, The Customs AntiSmuggling Organization (ASO) Sargodha has conSiscated 9040 kilogram of cumin seed (zeera) valued at Rs 4.06 million and also impounded a vehicle worth Rs 1.8 million which was being used for transportation of the smuggled items. The Assistant Collector of Sargodha region received information regarding a smuggling bid on which he formed a team con-

sisting of Inspector Bashir Ahmed, Ansir Saleemi, Constable Rana Muhammad Ashrif, Muhammad Ameen Shafqat, Mehmood Muhammad Feroz and Muhammad Mansha to foil the smuggling attempt. The ASO team intercepted a truck bearing Registration No. C-1811 going to Faisalabad from Rawalpindi near Salam interchange and recovered 226 bags Silled with zeera with total weight up to 9040Kg. The team asked the driver namely Syed Adalat Hussain to provide the documents regarding the lawful import of the said items.

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But the driver remained fail to do so, therefore; ASO ofSicial impounded the truck along with consignment under the prevailing customs law and served notice upon driver and consigner named as Muhammad Rahman along with consignee Shama Traders Faisalabad.

After a considerable passage of time no one appeared before the seizing agency to claim ownership of seized of goods and vehicle.

However, the customs has forwarded case to adjudication after making seizure report for further legal action.