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Daily
Vol 1 Issue No. 173
Karachi, Thu September 3, 2015
KARACHI
AFTAB CHANNA
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The Pakistan International Freight Forwarders Association (PIFFA), Fleet Operators Association of Pakistan (FOAP) and others have announced to suspend commercial activity until the federal government agrees to revoke what they termed ‘unjust’ 8 percent minimum tax on turnover on all service providers. Speaking at a press
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conference at the Karachi Press Club on Tuesday, Chairman PIFFA Asim Saeed, Nadeem Sharif of Travel Agents Pakistan and chief of All Pakistan Securities Agency said that the service providers had held several meetings with chairman and ofMicials of the Federal Board of Revenue. However, it seems that the government while acknowledging its mistake, is unwilling to make correction, forcing the services providers to discontinue business activities
Preventive Collector Mukarram Jah reshuffles deputy, assistant collectors
ASO Hyderabad seizes foreign cigarettes amounting to Rs 1.2m
PBIT plans to visit Iran for promoting bilateral trade
Faisalabad Customs earns Rs 3.57m through auction
NTC to introduce first-ever ‘Protection Policy’ to save industries: Abbas Raza
Lahore Collector Mukarram Jah has reshuffled assistant collectors | See pAge 02 |
Hyderabad Customs ASO has seized 48 cartons of different brand of cigarettes | See pAge 03 |
The PBIT, on the directives of the CM Punjab Shahbaz Sharif, in consultation | See pAge 04 |
The MCC Faisalabad has earned Rs 3.57 million through auction of vehicles | See pAge 03 |
Chairman NTC, Muhammad Abbas Raza said that a ‘Protection Policy’ | See pAge 09 |
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Customs recovers smuggled goods worth Rs 15m Thursday, September 03, 2015
National
KARACHI: The 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 air-condition, 80 window air-condition, 12 washing machines and 11 full size fridge.
preventive Collector mukarram Jah reshuffles deputy, assistant collectors
Govt should prevent animal smuggling to save tannery industry MULTAN
imrAN ALi
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LAHORE
m HAYAT
akistan Tanners Association North Zone has demanded the government prevent smuggling of animals from Pakistan to rescue the local tanning industries. The former chairman and well known businessman of tanners Sheikh Usman said that rampant smuggling of animals from the country has put the local tannery industry at the risk of closure. He said that some people take on the opportunity to smuggle the raw materials, mostly to the neighboring countries Afghanistan, Iran and Central Asia. He told that leather industry is playing major role in the development of the national economy and its export also a huge source of income for the government of Pakistan. “If the situation remains the same, all the tanneries in the country might be forced to close in a few years” he said. He told that leather industry is playing major role in the development of the country and its export also a huge source of income for the government of Pakistan. Tannery Industry is playing its role in the elimination of unemployment by providing them job opportunities in the country and tannery industry is contributing in the progress of the national economy with this prevailing situation.
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ustoms Preventive Lahore Collector Mukarram Jah Ansari has reshufMled assistant collectors and deputy collectors at the customs stations, including airport, T-10 railways station, Wagha border, Customs House and the Anti-Smuggling Organisation (ASO). According to details, the collector reshufMled nine customs ofMicers, giving them additional and changed assignments. Deputy Collector Iram Sohail has been posted at AFU, Headquarters Deputy Collector ShaMiqur Rehman has been posted at Land Customs Wagha, while Deputy Collector Touqeer Dar has been posted at T10. Earlier, he was serving as the deputy collector at Wagha. Moreover, Deputy Collector Ammar Ahmad Gul has been posted at AFU Group 1, while Saqibur Rehman will look after airport anti-smuggling. Assistant Collector Dr Adnan, who was earlier working at T-10 railways station, has been posted at AFU Group 1. The Anti-Smuggling Organization of the Customs Preventive Lahore has seized 26 smart television LEDs being illegally transported to Lahore, sources told Customs Today. Sources said that on the direc-
tions of Collector of Customs Lahore Preventive Mukarram Jah Ansari, a specially customs party intercepted a truck loaded with smart TV LEDs of 32 to 60 inches at Faizpur Interchange. The customs team consisting of inspector Sajad Bukhari under the supervision of Superintendent Mumtaz Ajmal Mian asked the own-
ers party to show customs clearance documents but they failed to produce the same. The Customs ASO team after seizing illegal LEDs have registered a case against the suspects and initiated further inquiries. The sources said that the total estimated value of the LEDs is Rs 1,200,000 involving Rs 600,000 duty and taxes, they added.
Meanwhile, The Customs Investigation and Intelligence’ anti-smuggling wing has seized smuggled items of Afghan Transit Trade valued at Rs 10 million on Multan Road. On the information of Additional Director Mohsin RaMique, Customs Intelligence ofMicials intercepted a truck loaded with auto parts, bicycles, alarms, tyres and cloth.
Rs 3.135m tax evasion: Adjudication-I to issue notice to Getz Pharma KARACHI
AFTAB CHANNA
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he Customs Collectorate of Adjudication-I is going to issue a show cause notice against M/s Getz Pharma (Private) Limited for alleged tax evasion of Rs 3.135 million by
claiming inadmissible beneMits under SRO 567(I)/2006. According to sources, the scrutiny of import data revealed that M/s Getz Pharma imported consignments of “Esomerprazole Pellets” under PCT Heading 2933.3990 through MCC Precventive, Custom House. And the importer had illegally availed the beneMit of concessionary rate of custom duty and income tax under the aforesaid
notiMication. Therefore, an amount of Rs 3.135 million has been short paid/evaded by the importers on account of custom duty and withholding tax, sources said, adding that the Customs Adjudication-I had gone through the case and the show cause notice was being prepared against the importer. The sources added that the importer M/s Getz Pharma Pvt Ltd had violated the provi-
sions of Section 32(1)(2) and (3A) of the Customs Act, 1969, Sections 3(1), section 3, 6, 7 read with section 34 of Sales Tax Act 1990 and Income Tax Ordinance 2001 punishable under clauses (1), (9) and 14 of section 156(1) of the Customs Act, 1969 punishable under section 33(5) and section 7A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Special procedure Rules 2007 (special proce-
dures for payment of sales tax by the importers ) and punishable under the relevant provisions of Income Tax Ordinance 2001. Meanwhile, The Collectorate of Customs Adjudication-I is preparing two show cause notices against M/s Descon Engineering Limited for the tax evasion of Rs 3,499,249 by availing undue beneMits under the SRO 575(I)/2006. The Directorate of Post Clearance
Audit (PCA) Karachi has detected two cases of tax evasion by M/s Descon Engineering Ltd i.e. Rs 2,419,158 and Rs 1,080,088. The scrutiny of the import data revealed that importer had imported consignment of machinery parts and spares and got them cleared from Model Customs Collectorate-Appraisement (West) availing inadmissible exemptions of customs duty as in excess of 5 percent.
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Additional tax on service sector harming economy LAHORE: The 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 profits while others have small turnover but enjoy windfall, said President Pakistan Businessmen and Intellectuals Forum (PBIF) and former provincial minister Mian Zahid Hussain.
FBR considering offering incentives to potential taxpayers ISLAMABAD
m FAiZAN
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he Federal Board of Revenue (FBR) is considering a proposal for business community to broaden the tax net. According to the proposal, if traders and industrialists disclose their hidden income, a low tax rate will be applied on them. Sources told Customs Today that the FBR is ready to discuss this proposal and some concessions will be announced for the traders and industrialists as part of a package. Besides, the FBR is also considering offering a relief package for traders and industrialists according to which if they disclose their hidden income and details of property, their source of income will not be investigated and the government will provide all necessary protection to their revenue.
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Customs impounds smuggled auto parts, tyres LAHORE
m HAYAT
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he Customs Directorate of Intelligence and Investigation has seized smuggled tyres and auto-parts worth millions of rupees, official sources told Customs Today. The sources said that customs authorities seized the illegally imported goods and articles. The sources said that on secret information of additional director Mohsin Rafique Customs team intercepted a truck loaded with auto parts and tyres. The authorities demanded the clearance documents from the truck owners but the owners failed to show clearance documents for 13 tons of goods while the truck was loaded with 30 tons of auto parts and tyres. The sources said that a case has been registered and further investigations are underway. The sources said that a case has been registered and further investigations are underway.
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Thursday September 03, 2015
National
Faisalabad Customs earns rs 3.57m through auction HYDERABAD
NAeem SHeikH
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he Model Customs Collectorate (MCC) Faisalabad has earned Rs 3.57 million through auction of vehicles and miscellaneous items impounded by Anti-Smuggling Organisation (ASO). As per details, the MCC Faisalabad presented 10 vehicles including Honda Heavy Bike, Suzuki Heavy Bike, Toyota Corolla DX, Toyota Vitz, Toyota Corolla, Toyota Hilux Surf, Toyota Vitz, Toyota Hiace and Toyota Corolla bearing Registration No. B2643 for auction. While, eight vehicles attracted suitable bids to the tune of Rs 2.73 million. Meanwhile, 52 lots of miscellaneous goods comprising heated display case, display refrigerator, petrol engine for motor bike, white board markers, fax machines, silk cloth, tyres, and others smuggled items were presented for open bid. However, customs received bids of 19 lots but approved only 11 bids. MCC Faisalabad earned Rs 839,000 by selling 11 lots through bidding. The auctions was held under the supervision of Assistant Collector Muhammad Asim Awan by Inspector Qaisar Fareed, and Upper Division Clerk Khadim Hussain. Meanwhile, Model Customs Collectorate (MCC) Faisalabad Collector Tauseef Ahmed Qureshi has reshufMled four customs employees,
including inspector, havaldar and sepoys with immediate effect. As per details, Collector Tauseef has transferred Inspector Anser Saleemi to Anti-Smuggling Organisation (ASO) Sargodha from ASO Sare-e-Mohajir, while Havaldar Rana Muhammad Ashraf was also assigned duty at ASO Sargodha from Sare-e-Mohajir. Besides, Sepoy Abdul Hameed Munj who was performing his duty at Faisalabad airport has been posted at ASO Sargodha Similarly, Sepoy Liaquat Ali Wasli has been transferred from Customs Complex Faisalabad and posted at ASO Sar-
godha with immediate effect. Meanwhile, The Anti-Smuggling Organization (ASO) Sargodha has seized foreign origin Toyota Hiace
mCC Faisalabad presented 10 vehicles, including Honda heavy bike, Suzuki heavy bike, Toyota Corolla DX, Toyota Vitz, Toyota Corolla, Toyota Hilux Surf and Toyota Vitz for auction
SHC bars customs from drawing regulatory duty
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he Sindh High Court (SHC) on Tuesday barred the Pakistan Customs from drawing millions of rupees regulatory duty from its Nazir till Friday. A division bench of the SHC, headed by Justice Sajjad Ali Shah, gave this restraining order on the request of the counsel for the petitioner, an importers of steel and iron products who pleaded with it to restrain Pakistan
Customs from withdrawing the amount deposited with its Nazir in terms of regulatory duty for provisional release of their consignments so that they could move the apex court against its verdict that dismissed their petitions challenging imposition of regulatory duty on imports of iron and steel material from China. A large number of the importers of steel and iron products had approached the court, stating that Pakistan and China had entered into a Free Trade Agree-
ment for import of steel and iron products and subsequently a notiMication was issued exempting regulatory duty on imports. However, they said, the federal government had issued SRO No. 601(1)2015 on June 30 whereby it amended its earlier SRO No. 568(1)2014 abolishing the exemption. The counsel for the petitioners argued that the material they import from China comes within scope of FTA and therefore, the imposition of regulatory duty was illegal and unlawful.
van. The market value of the seized vehicle is Rs 1.2 million, involving duty and taxes amounting to Rs 655,680. The Toyota Hiace is 1984 model. Sources told Customs Today that Assistant Collector Muhammad Asim Awan received information regarding the smuggling of the vehicle. After receiving the tip, Assistant Collector immediately constituted a raiding team comprising Muhammad Ansir Saleemi (Inspector), Rana Muhammad Ashraf,( havildar ) Muhammad Amin, Shafqat Mehmood Muhammad Feroz, Muhammad Mansha (sepoys).
Customs Tribunal disposes of 40,914 cases in 10 years akistan Customs Appellate Tribunals have heard and disposed of as many as 40,914 customs cases from across the country in decade (2005-2015), it is learnt. Documents available with the Customs Today revealed that 3,132 cases were still pending with the eight benches of Customs Appellate Tribunal in Islamabad, Karachi, Lahore and Peshawar.
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PBIT plans to visit Iran for promoting bilateral trade Thursday, September 03, 2015
Business
LAHORE: The Punjab Board of Investment and Trade (PBIT), on the directives of the Chief Minister Punjab Shahbaz Sharif, in consultation with the Iranian Consulate in Lahore organized a three-day visit to Iran. Minister for Food Bilal Yasin will lead the delegation, while Minister for Agriculture Farukh Javed, Director General Agriculture extension Muhammad Anjum, Chairman PBIT Abdul Basit, Secretary Livestock and Industries Nasim Sadiq were part of the delegation while the purpose of the delegation’s visit was to plan the upcoming visit of the chief minister Punjab to Iran.
CpeC, CAreC to prove a milestone in regional development: ADB
LAHORE
ISLAMABAD
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hina-Pakistan Economic Corridor (CPEC) and the Asian Development Bank (ADB) funded Central Asia Regional Economic Cooperation (CAREC) would prove a milestone in regional development and connectivity, said Director General ADB, Sean O’ Sullivan here on Tuesday. Referring to CPEC, the DG ABD also appreciated the Pakistan’s efforts
oil tanker owners strike against imposition of taxes
for promoting regional connectivity. Sean O’ Sullivan, who called on Minister for Finance Senator Mohammad Ishaq Dar, said the progress made by Pakistan in attaining macro-economic stability was highly commendable. He further said International Monetary Fund (IMF) and other International Institutions have also endorsed the progress made and macro-economic stability achieved by Pakistan in a short span of time. With the efforts of the current government, the International community is dealing more conMidently with Pakistan now and we also support this new development, said DG ADB.
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he Oil Tankers Owners Association Tuesday observed a strike against the imposition of new levy on the transportation of oil upcountry. The strike called by the Oil Tanker Owner’s Association also caused a severe shortage of petrol in Karachi, Quetta and several parts of the country. Besides, the shortage comes as the government notified a decrease of Rs 3 per litre in the prices of petrol and diesel from Tuesday.
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Infrastructure system in the region. He said Central West Asia Department Bank (ADB) had long been a valuable development partner of Pakistan and ADB’s positive role in the development programs is duly acknowledged. Ishaq Dar on the occasion thanked the ADB representative for their support on highly important Jamshoro Coal Power Project, Flood Emergency Project and other projects of infrastructure and energy development in Sindh and Balochistan. He appreciated ADB for providing vital support to Pakistan particularly for efMiciency gain from road trafMic operations along the National Trade Corridor.
SeCp approves new inspection regime for brokers
KARACHI
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He stated the energy sector reforms were a tough challenge, however the Government of Pakistan’ Reform Program was very encouraging and the multilateral partners fully supported it. Sullivan said the efforts made by the Government to solve complicated issues were commendable and the leadership provided by Minister for Finance for various reform initiatives was truly remarkable. He also referred to the Border Crossing Points Improvement Project and appreciated Finance Minister’s leadership in ensuring its progress as this is vitally important for revamping the existing trade and
ISLAMABAD
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he Securities and Exchange Commission of Pakistan (SECP) will implement a new inspection regime in October to remove bottlenecks and duplication of efforts of regulators while conducting inspections. Inspections are an effective tool worldwide to ascertain compliance
status and early warnings with regard to regulatory compliance, the ultimate objective of being ascertain clients’ assets protection, according to statement issued by SECP here on Tuesday. In the Pakistani capital market, stock brokers have been subject to different types of inspections by the SECP, Central Depository Company and system audit by stock exchanges. This results in not only in duplication of effort but also creates difMiculties for brokers who are constantly engaged with the inspection teams and the auditors. Further, the linkages between the
trading, CDC and Minancial/back ofMice records may not be appropriately investigated during onsite inspections due to different scopes of inspections of CDC and system audit by stock exchanges. In view of the above, there was a great need to put a mechanism in place for a single inspection regime to ascertain compliance with all the regulatory requirements giving top most priority to investors’ assets protection and conduct regular inspections using risk based approach for selection of brokers with comprehensive scope and sufMicient frequency.
TDAp to hold weXNeT exhibition 2015 CuSTomS BuLLeTiN reporT rade Development Authority of Pakistan (TDAP) is organizing Pakistan’s largest trade exhibition WEXNET 2015 here at Expo Centre from December 4 to 6. It would be the 9th edition of WEXNET aimed at promoting women entrepreneurs to encourage and enhance their capacity for their valuable contribution in the export sector of the country, said the Authority’s spokesman here Tuesday. At the moment, he added, the TDAP is working on arrangements of the exhibition to make the mega event a success, as more than 200 stalls are expected to be set up in the exhibition this year, while this platform will eventually help improve export figure of the country and create a compatible business environment. Women entrepreneurs from all over Pakistan, India, Nepal, Bangladesh, Sri Lanka, Bhutan and other parts of the world would showcase their products in the exhibition, he maintained. The TDAP has offered women entrepreneurs to display all products/service sectors including textile items, leather garments, footwear, handicrafts, gift items, beauty care items, food products, pharmaceuticals, herbal medicines, jewellery, cutlery, sports goods, carpets, marble and granite and services etc.
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Pakistan Post earns Rs157b in 5 years through insurance covers ISLAMABAD
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akistan Post generated Rs156,711.33m during the last Mive years (2009-14) through its insurance cover for customers. Pakistan Post is constantly gaining proMit under this cover
showing an average increase of Rs3 to 4 million annually. According to the ofMicial statement, the Pakistan Post earmarked revenue of Rs34,495.495m during 2013-14 as compared to Rs31,367.911m in 2012-13, Rs27,536.721m in 201112, 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, ofMicials 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 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 Minalise 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 gear up efforts to Minalise 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 Mloods 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.
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he Federal Board of Revenue (FBR) on Tuesday signed a contract with the Institute of Business Administration (IBA), Karachi regarding ‘MBA Tax Management Programme’ for FBR officers. Chairman FBR, Tariq Bajwa and Dean IBA, Dr. Ishrat Hussain signed the contract. Finance Minister, Senator Mohammad Ishaq Dar and Special Assistant to Prime Minister on Revenue, Haroon Akhtar, were also present on the occasion. Through this agreement, FBR would initiate process of grooming its BS-17 to 19 officers of Inland Revenue Service (IRS) and
Pakist having throug Progra The ap cers of per ye decide year’s On the was pl institu and IB ing pro service The t streng the FB flect in cilitati provem The M tion be
Thursday, September 03, 2015
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tan Custom Service (PCS) g 2-12 years of experience gh an MBA Tax Management amme from IBA. pproximate number of offif FBR will be around 20-25 ear. The FBR would however, e the final number for each programme. e occasion, Ishaq Dar said he leased to see two prominent utions of the country, FBR BA joining hands for impartofessional training to the ine officers. training, he said, would gthen professional skills of BR officers and ultimately ren better service delivery, faion of taxpayers and imment in the taxation system. Minister hoped that cooperaetween FBR and IBA would
further expand in future. Dr. Ishrat Hussain, in his remarks said the IBA had also invited the Commerce ministry, AGP Office and other organizations to avail the excellent training services offered by IBA and looked forward to imparting training to FBR officers and programme is tailor-made keeping in view improvement of skill sets and facilitation of both the taxpayers and the tax collectors. Tariq Bajwa on this occasion said that FBR has initiated the process for commencing MBA Tax Management Programme for the officers of the Inland Revenue Service (IRS) and Pakistan Custom Service (PCS) at IBA, Karachi. The programme aims at providing the officers an exposure to modern management concepts and techniques.
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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
Banking on strategic location
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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 multinational 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. Once politicians ignore petty differences, no one will stop Pakistan from becoming an economic tiger.
Banking on strategic location A
LAHORE
Dr AFTAB AFZAL
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ccording to the World Bank, Pakistan has vast development potentials due to its important strategic geographical location as it is situated at the fulcrum of various regions, including South Asia, Central Asia, China and the Middle East. The bank says that the country is the center of a regional market where the population is large and natural resources are untapped with a vast potential of trade and investment. The country can reap demographic dividends with increasing proportion of workingage population but despite having all the positive indicators, Pakistan
is facing economic, governance and security challenges. The country is facing security challenges from India and from within in various regions of the country — from the tribal areas bordering Afghanistan to urban areas like Karachi and elsewhere. The engagement of the army in various anti-terrorism operations on the western and eastern borders is the major impediment in the way of development. The poor governance is one of the major areas of concern, while the challenges of creating conducive business environment as well as the maintenance of peace and security are hindering the potential growth of Pakistan. Pakistan has also faced natural disasters such as earthquake and
Mloods, which had ruined the rural economy, but fall of oil prices in the international market and support from the International Monetary Fund have pushed the economy to resist. The World Bank says that the country is facing persistent energy crisis, but even then the economy is showing signs of recovery driven by agriculture and services sectors. Pakistan has recorded growth in cotton, wheat and rice crops despite the Mloods while road transportation, telecom industry, Minance and insurance have boosted the service sector. Though the large-scale manufacturing units have shown positive growth, its volume remained below than the last year. The pharmaceuticals, electronics, automobiles, iron and
steel industries have shown good performance, but energy crisis persistently haunted the industrial sector. As a matter of fact, quality of life has improved in the urban centers of the country, but 75 percent population in rural areas still lives below the poverty line. Unless the government introduces corporate culture in the agriculture sector, the living standard of peasants cannot be improved. Though the corporate sector has its own merits and demerits, but it is better to follow a direction rather than setting on a journey without destination. Pakistan is blessed with intelligent minds, and it is hoped the nation will Mind a way out to extricate itself of the economic mess.
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Delegations from US, Turkey to participate in flour millers’ conference LAHORE: Seventh Pakistan Flour Milling Conference and Exhibition will be organised on September 5 in provincial capital. Former Pakistan Flour Millers Forum (PFMA) chairman Dr Bilal Sufi and chairman of 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 organizing committee while Punjab CM Shahbaz Sharif and Food Minister Bilal Yssin are likely to be present in the inaugural session. The focus of conference will be on how Pakistan can get rid of excessive wheat, wheat issue policy, modern means of storage of wheat, new milling techniques, value addition, improvement in the standards of products and meeting the social challenge of anaemia through flour fortification etc.
SCCI condemns 8% service tax on cargo agents, freight forwarders ialkot Chamber of Commerce and Industry Present Fazal Jilani strongly condemned the eight percent turnover services tax imposed by the government on cargo agents and freight forwarders. He termed this tax as a cruel and unjust decision of the government. He said that it is quite ironic that the government had implemented 8 percent services tax on the cargo agents and had left them in dire financial crisis as they were already paying 12 percent services tax. He said that this extra tax would ultimately disturb the pre-burdened business community. Mr. Fazal Jilani expressed his concern that the cargo agents would be forced to charge the extra amount from the exporters which would in turn increase their cost and hamper the dwindling exports which are already facing issue like pending sales tax/duty drawback refunds and Infrastructure Development Cess on imports by Punjab and Sindh Government.
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Textile exhibition secures $300m orders in 3 days 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 while more than 100,000 visitors registered their presence in textile fairs in three days. The PRGMEA chairman said that the machinery and equipments display at the exhibition were of immense utility to manufacturers producing value added products for increasing volume of exports.
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uNiDo-Cleantech, iCCi organise ‘Business Clinic’ for Smes ISLAMABAD
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he United Nations Industrial Development Organization (UNIDO), in collaboration with Islamabad Chamber of Commerce and Industry (ICCI), has organized a ‘Business Clinic’ for providing training to the small medium entrepreneurs (SMEs) and start-ups that have qualiMied as semi-Minalists for UNIDO’s Call for Awards 2015 of Cleantech competition. The GEF funded initiative was part of a three years Global Cleantech Innovation Program (GCIP), currently running in many countries including Pakistan and is aimed at developing a sustainable entrepreneurship ecosystem by supporting clean technology innovations in SMEs and start-ups so that they could maximize opportunities for achieving sustainable commercial success. In the second cycle of this competition, Pakistan got the highest number of applications among all other countries which showed the
potential and talent of Pakistan in clean technology. Speaking at the occasion, UNIDO Representative Esam ALQARARAH, thanked ICCI for partnering with UNIDO to organize Business Clinic of Global Cleantech Innovation Program for SMEs and hoped that cooperation of both organizations will help in promoting green industry in the region. He said UNIDO was involved in promoting Cleantech innovation programs for SMEs around
the world in order to promote inclusive and sustainable Industrial Development (ISID) for poverty reduction, inclusive globalization and environmental sustainability. He said these efforts of UNIDO in Pakistan will go a long way in promoting clean technologies for green growth and green industry in the country. He assured that UNIDO will keep providing different services to the semiMinalists including trainings, incubation services and others that
LCCI calls for early construction of Kalabagh Dam
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eing an agrarian country, Pakistan cannot afford to waste huge amount of water resources which are depleting fast. Shortage of water has not only caused undue damage to the agriculture sector but to the manufacturing sector as well. “We cannot waste more time therefore government should pave way for early construction of Kalabagh dam which is the only solution of water and electricity shortage”, said LCCI President Ijaz A. Mumtaz while talking to a 20-member delegation led by its Chairman Malik Mansab Awan and Ch. M. Javed Khushi here at the LCCI. Mumtaz said that our economy is based on agriculture sector which cannot survive without sufMicient water resources. He said that we are al-
LCCi president ijaz A. mumtaz ready suffering and further delay in the construction of Kalabagh dam would hit us hard. He said that it is a good omen that political circles have started realizing the importance of this mega project that would certainly pave way for its early construction. “Kalabagh Dam issue has been so
much politicized that a consensus seems difMicult therefore the government would have to take decision.” The LCCI President said that melting of glaciers is eye-opener as sword of Mloods is hanging on our heads. “An opinion gained widespread support across the country that the losses of recent Mloods in Pakistan which are estimated to be billion dollars could have been reduced if big dams and water reservoirs were in place”, Mumtaz added. The LCCI President said that Kalabagh dam is the most suitable project for the national economy as it would not only produce cheap and sufMicient electricity but would also avert the devastation caused by the Mloods. He said that Kalabagh dam is a must to control the poverty and hunger and those who were opposing the KBD were enemies of this country as they were playing with the country‘s future.
would help them a lot in improving their business prospects and take their Cleantech ideas to new heights. Addressing the Business Clinic, Muzzamil Hussain Sabri, President, Islamabad Chamber of Commerce and Industry stressed upon the need of providing SMEs and start-up businesses easy access to solutions, alternatives and funding support to innovate, absorb and scale up clean technologies for green growth and green industry.
Govt urged to address issues of air cargo agents he local business community has asked the government to immediately resolve the issues faced by air cargo agents as they, along with Pakistan International Freight Forwarders Association, are going on strike for fulfilment of their demands. Lahore Chamber of Commerce & Industry (LCCI) President Ijaz Mumtaz, in a statement, said that the strike would deal a big blow to the export-oriented industry that is already facing various internal and external challenges. The LCCI president maintained that the strike of Air Cargo Agents Association and Pakistan International Freight Forwarders Association would cause hardship to the exporters, and the government would be the ultimate loser as far as revenue collection is concerned.
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Kochi Customs arrests Irish national for smuggling 10kg gold Thursday September 03, 2015
World
KOCHI: The probe into the Kochi-based gold smuggling racket that operated with an Irish carrier seems to have hit a roadblock owing to delay in nabbing Nibu Mathew, a Kaloor native. According to officials, Nibu has gone into hiding since the arrest of Edwin Andrews of Ireland with 10 Kg of gold at the airport. ``We received information about Nibu, who linked up the racket with its clients, from a statement by Edwin’’, said an official with the Special Investigation and Intelligence Branch of Customs. Initial investigations revealed that Edwin had come to Kochi on business visas for about ten occasions over the past couple of years. ``After checking in a city hotel, he would contact Nibu over phone and handover the contraband’’, he added. Nibu had escaped to a hide-out in Bengaluru soon after Edwin’s arrest and later shifted his location to Mysuru.
uS Customs extending ACe ‘single US Customs to launch biometric border entry, exit window programme’ till Feb pilot control programme
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S Customs and Border Protection said Monday that it’s extending its November deadline for the ACE "single window" program until February, after a rash of complaints and concerns from brokers, shippers and others who said they aren’t ready for the new system. Many US shippers have told the agency in recent months they were running out of time and more internal agency checks were needed before the rollout of the Customs’ new automated commercial environment, or ACE. The single window system promises to consolidate, automate and modernize border processing. When complete, its single, electronic portal will allow importers and exporters to share trade documents with government agencies, saving shippers and
Abu Dhabi Customs foils attempt to smuggle 30,000 alcohol bottles ustoms officials found more than 30,000 bottles of alcohol hidden in crates marked 'apples' in a lorry headed out of the country and into Saudi Arabia. Security officers at Al Ghuwaifat customs were tipped off about an attempt to smuggle a large quantity of alcohol. Customs inspectors checked a lorry with UAE licence plates at the border checkpoint. Using scanning equipment, officials found the bottles in boxes labelled 'apples'. In total, 2,559 cardboard boxes each containing a dozen bottles were found, totalling 30,708 bottles. In a separate incident, an Arab passenger was found in possession of 8,000 pills hidden in his belongings when inspectors searched buses entering the UAE through Al Ghuwaifat. The seized pills are classified as stimulants that can only be prescribed by a doctor, officals said. Both suspects were arrested by customs inspectors and legal action is under way.
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brokers’ time and money. Shippers groups such as the Trade Leadership Council, however, voiced concerns that the program is not entirely ready and many of the importers, exporters, customs house brokers, freight forwarders and carriers they represent simply aren’t prepared. The message apparently hit home with Customs. Agency ofMicials said Monday that due to the response from the trade industry, they would
be postponing the full rollout of ACE until Feb. 28, 2016. Instead, “Nov. 1 will represent the beginning of a transition period for CBP,” said Deborah Augustin, acting executive director at the ACE Business OfMice. It means more time to test the system and for agencies and industry partners to provide feedback, she said. Nevertheless, “by Feb. 27, 2016, industry partners will be expected to transition,” she added.
Guinea Customs chief to negotiate on $1.4b taxes with petrol supplier uma Energy acquired Inter Oil in 2014 becoming Papua New Guinea's major supplier of fuel. Papua New Guinea's Customs Commissioner, Ray Paul, says there is no attempt to prevent PNG's major petrol supplier doing business in the country. Puma Energy has reportedly warned that the country is set to run out of petrol in the coming weeks as the company winds down its supply amid negotiations with the state over 1.4 billion US dollars in taxes it has been asked to pay. Mr Paul confirms Customs has some
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outstanding issues with Puma that it is currently in discussions with the company to resolve. But he insists Customs is not preventing Puma operating as normal. "We have not and we will not because we are here to grow business in PNG, number one. secondly, we... as much as possible, they are investors, they're coming in here, and what they invest in, we want to see them having their return, so we're not in the business to close anyone from doing business unless they have issues, then yes we will want to deal with them up front."
S Customs and Border Protection is set to launch a biometric border entry and exit control pilot program at Otay Mesa, San Diego in an effort to identify and apprehend foreigners with expired visas who are have surpassed their permitted duration, according to a report by The San Diego Union-Tribune. The “Pedestrian Border Experiment,” which will likely launch this year, will target non-U.S. citizens who enter and exit the country on foot through Otay Mesa. The pilot program will be the agency’s Mirst use of facial and iris scans on the nation’s southern border, said U.S. Customs and Border Protection. The biometrics program is intended to track nonimmigrant visa holders who enter the country legally but continue to stay in the country after their visa has expired. “We want some system to determine that you’ve left the country, whether it’s at an airport getting onto the jetway, or here at the pedestrian crossing,” said R. Gil Kerlikowske, the federal agency’s commissioner, during a visit to San Diego this month.
The CBP currently performs southbound checks at the Mexican border, however, these checks are typically conducted to search vehicles for weapons, bulk cash and other contraband. As a result, those pedestrians walking into Mexico at Otay Mesa are usually not thoroughly checked by both the U.S. and Mexican governments. The pilot will take place over a two months and is expected to involve a signiMicant number of pedestrians, with CBP estimating that there were about 183,000 northbound pedestrians at Otay Mesa in June, or more than 6,000 a day. The number of people crossing the border southbound is estimated to be about the same, although there is no ofMicial count. The pilot program continues the federal government’s growing use of biometrics, which has become a hot button issue among privacy advocates. The CBP said that its biometrics testing “is dedicated to protecting the privacy of all travelers,” and that “the images will be stored in a secured local database and will be used for test purposes only and will not be stored or shared with any other party or system.”
France, Belgium Customs jointly seize 1.6 tonnes of cocaine in summer
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joint customs task team between France and Belgium seized a total of 1.6 tons of cocaine, worth a street value of 62 million euros, at Antwerp Port during the summer months this year.
June’s haul totalled 486 kg, July’s 535 kg and August’s 536 kg. The drugs were found in containers arriving from South America and were hidden either during shipping or during the stocking of the containers.
malta Customs to develop iT system for export goods clearance
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he project to develop the new Import and Export systems was entrusted to the Government agency MITA. In the coming weeks the Customs department will be deploying a new IT system for the clearance of goods
for export, excise director Joseph Chetcuti said. In a statement, Chetcuti said that the department had recognised the pressing need to deploy new IT systems based on the latest technology available on the market. “Maintaining and upgrading current aging systems has become difMicult and above all very costly,” he said.
Contrary to what happened prior to EU accession, the decision was taken to develop the new systems inhouse. This would cater better for the department’s speciMic needs and be more Mlexible for future upgrades which may become necessary due to any changes in EU legislation. The project to develop the new Import and Export systems was entrusted to the Government agency
MITA. The system had to be compliant with EU customs regulations and several meetings were held with experienced customs ofMicials to ensure compliance. An implementation team was set up within the Department’s Computer Section to coordinate with MITA experts and give them the necessary feedback as the development progressed.
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Port of Osaka’s cargo traffic falls in May OSAKA: Cargo traffic at Port of Osaka in western Japan fell 13.9% year on year (y/y) in May to 6.205 million tonnes as both domestic trade and foreign trade shrank sharply. The preliminary figures were released by the Osaka municipal government on 31 August. Of the total cargo traffic in May, 2.721 million tonnes came from foreign trade, down 9.0% y/y, and the remaining 3.483 million tonnes came from domestic trade, down 17.5% y/y. Of the 2.721 million tonnes, the Port of Osaka exported 816,711 tonnes of cargo, up 3.9% y/y, and imported 1.904 million tonnes of cargo, down 13.5% y/y. The Port of Osaka handled 172,570 teu of containers in May, down 12.1% y/y.
China Merchants Energy Shipping forms subsidiary to own valemaxes
Ports & Shipping
Thursday September 03, 2015
Netherlands port of rotterdam to develop indonesian port AMSTERDAM
SINGAPORE
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hina Merchants Energy Shipping (CMES) has established a whollyowned subsidiary that will own and operate four 400,000 dwt VLOCs acquired from Brazil’s mining giant Vale. The new Hong Kong-based subsidiary, named China VLOC Company Limited, will own the four VLOCs, or valemaxes, purchased at a total price of $448m by CMES. Vale Shipping Singapore, the vehicle that owns the valemaxes and subsidiary of Vale, will hand over the ownership of the giant ore carriers to CMES some time this month. CMES had earlier entered into a deal for it to order 10 VLOCs against a 25year contract of affreightment (COA) with Vale. A similar deal with was inked with state-owned China Cosco Group over another 10 valemaxes. Cosco and China Shipping Development Co (CSDC) have also jointly set up a Singapore venture named China Ore Shipping to own the valemaxes acquired from Vale.
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Vietnamese marine fish export reaches over $2b by 2020 y 2020, Vietnamese marine fish exports could reach over $2 billion, said the country's association of seafood exporters and producers (Vasep), citing sector experts. Capture output is also expected to rise to between 2.2 and 2.4 million metric tons, including 100,000t of tuna, whose value surpasses $500m. There is a general consensus that technological innovation in processing, preservation, standards such as GlobalGap, BAP, and policies to support fishermen and trade promotion are pivotal in the assurance of seafood quality.
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he Port of Rotterdam Authority has signed a partnership agreement with the Indonesian Port Corporation Pelindo I in Medan, North Sumatra, for the development of the new deep sea port Kuala Tanjung. The port authority will now carry out a feasibility study for the new port together with Pelindo I. A project organization will be created for this purpose that will include a number of the port authority’s employees locally and based in Rotterdam. Depending on the outcome of this feasibility study, the authority will assess whether it will enter into a joint venture with Pelindo I for the further realization of the port. CEO Allard Castelein signed the agreement on behalf of the Port Authority: “We want to share our knowledge in the construction, development and management of Kuala Tanjung. We are conMident that the Port Authority and Pelindo I will
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form a strong team that will serve the country and provide for a better future.” Castelein will take part in a Rotterdam delegation that will travel through Indonesia under the leadership of Ahmed Aboutaleb. The Mayor of Rotterdam was present during the signing and indicated that he hoped that new port will create many new jobs in Sumatra. “This is a good opportunity to develop new activities and to attract investors.” Kuala Tanjung is a newly to be developed port near the city of Medan located in the Strait of Malacca, one of the most important shipping
routes in the world. Joko Widodo, who became Indonesia’s president last year, has made strengthening the maritime sector a spearhead of his policy in order to promote economic growth (6-7 percent per year). Kuala Tanjung is one of the main projects in the national maritime strategy. The development of a deep sea port in Indonesia is consistent with the port authority’s foreign policy that, among other things, is focused on creating opportunities for Dutch companies abroad. Participation in port development in countries that are of interest to the port is one of the ways in which to achieve this.
Ningbo port and Zhoushan port to merge ingbo Port has ofMicially announced that it is currently working on a merger with Zhoushan Port, having suspended trading of the company’s stocks since August 4 to put together the deal. In August, Zhejiang government announced that a new entity named Zhejiang Port Investment Operation
Group (ZPIO) has been established by Zhejiang SASAC. The group is said to be the operating platform for the port assets in Zhejiang including Ningbo Port, Zhoushan Port, Taizhou Port, Wenzhou Port and Jiaxing Port. In June, Zhoushan Port released an IPO prospectus in which it plans to raise RMB614m ($96.4m) for the development of its Shulanghu iron
ore terminal and for capital replenishment. It also said that it was facing Mierce competitions from Ningbo Port and Shanghai Port, especially in the container shipping sector. According to a source in Zhoushan Port, the IPO plan has been shelved due to the ongoing merger deal with Ningbo Port.
Calais port dispute looks to be over after ferry workers strike a deal he cross-Channel ferry dispute that caused chaos around Calais in northern France and disrupted British freight and holidaymakers throughout the summer appears to have been resolved, after French workers struck a deal with Eurotunnel and the Danish shipping company DFDS Seaways. The agreement means two ships occupied by staff from the defunct MyFerryLink service should now be released and brought into the DFDS fleet. The ferries, the Rodin and Berlioz, were operated by French crew at SCOPSeaFrance, an independent company working on behalf of the Eurotunnel-owned MyFerryLink. After a competition ruling forced Eurotunnel to end the sailings, crew occupied the ships before they could be leased to DFDS, in protest at planned job cuts. The deal would save 402 of the 487 threatened redundancies, including a commitment from DFDS to employ 202 of the crew and use the two French ships on its main Dover to Calais crossing, to ensure what the Danish firm called a “truly Anglo-French partnership”. DFDS will operate three ships from Dover to Calais and three to Dunkirk, allowing more frequent services, once Eurotunnel is able to hand them over. The deal, reached in negotiations that involved the French transport minister and due to be presented to the crews by union leaders on Tuesday afternoon, would see the occupying crew leave on Wednesday. Carsten Jensen, senior vice-president at DFDS, said: “This ends a long period of uncertainty for both our employees and our customers on the Channel as this agreement gives us the platform needed to create a sustainable ferry service on the Channel. It also means that we have an equal number of French- and UK-flagged ships on the Channel, making the service a truly Anglo-French partnership, which we believe is in everyone’s best interests.”
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port authority to carry feasibility study with pelindo
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ROTTERDAM
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he Port of Rotterdam Authority has signed a partnership agreement with the Indonesian Port Corporation Pelindo I in Medan, North Sumatra, for the development of the new deep sea port Kuala Tanjung. The port authority will now carry
out a feasibility study for the new port together with Pelindo I. A project organization will be created for this purpose that will include a number of the port authority’s employees locally and based in Rotterdam. Depending on the outcome of this feasibility study, the authority will assess whether it will enter into a joint venture with Pelindo I for the further realization of the port. CEO Allard Castelein signed the
agreement on behalf of the Port Authority: “We want to share our knowledge in the construction, development and management of Kuala Tanjung. We are conMident that the Port Authority and Pelindo I will form a strong team that will serve the country and provide for a better future.” Castelein will take part in a Rotterdam delegation that will travel through Indonesia under the leader-
ship of Ahmed Aboutaleb. The Mayor of Rotterdam was present during the signing and indicated that he hoped that new port will create many new jobs in Sumatra. “This is a good opportunity to develop new activities and to attract investors.” Kuala Tanjung is a newly to be developed port near the city of Medan located in the Strait of Malacca, one of the most important shipping routes in the world.
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Customs seizes smuggled goods worth Rs 10.25m during July ISLAMABAD: The Model Customs Collectorate Islamabad Preventive Division seized Rs 10.25 million foreign origin smuggled goods during July 2015. According to details, Deputy Collector headquarters Yawar Nawaz told Customs Today that during the course of anti-smuggling activities in July 2015, the Model Customs Collectorate Islamabad Preventive Division has seized Rs 10.2 million foreign origin smuggled goods, including 3 non-duty paid vehicles worth Rs 8.2 million.
Thursday, September 03, 2015
CUSTOMS BULLETIN
FBR bags Rs 183b in August, dept doing its best to collect revenue: Shahid Asad ISLAMABAD
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espite facing resistance from business community on various issues, the Federal Board of Revenue (FBR) has collected Rs 183 billion during August of Miscal year 2015-16 by surpassing the collection of corresponding period of 2014-15 by Rs 5 billion. As per details, the FBR has collected Rs 332 billion during Mirst two months of running Miscal 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 difMicult 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 deMicit to the tune of Rs 1.7 trillion which could be overcome by paying taxes.
ANF foils bid to smuggle narcotics, arrest smugglers PESHAWAR
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he Anti-Narcotics Force Peshawar, during road checking, arrested three suspects and recovered nine kilograms of opium and 204 kilogram of charas from them. Sources said that the ANF team intercepted a Rawalpindi bound passenger van near Mo-
torway Toll Plaza, Peshawar and arrested Niaz Parwana and Arshad Khan, residents of Peshawar. Detailed search of the accused persons resulted in recovery of 2.4 kilograms of charas. As per initial reports, they were heading towards Rawalpindi for delivery of drug to some local drug peddler. Separately, ANF Peshawar road check team intercepted a passenger coach near Motorway Toll Plaza, Peshawar and arrested a drug carrier
namely Bashir Khan resident of Mohmand Agency along with three kilograms of opium. During another crackdown ANF Peshawar road check team intercepted a Toyota Corolla car at KDA Road Kohat and recovered six kilograms of heroin concealed in secret cavities of the vehicle. Driver of the vehicle namely Hasiat Ali resident of Kohat was arrested on the spot. Meanwhile, The Anti-Narcotics Force has arrested two smugglers and recovered 58.8
kilogram of charas in two separate crackdowns. Sources said that the ANF Peshawar Road team, on pursuance of information, intercepted a Suzuki Pothohar jeep near New Toll Plaza, Indus Highway, Kohat and recovered 30 kilograms of charas, which was concealed in secret cavities under the floor of the jeep.An occupant of the jeep, named Olas Khan resident of Khyber Agency was taken into custody on the spot. In another operation launched near New Toll Plaza Indus
Published by M S Raza O# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,o I.I. Chundrigar Road, Karachi
Highway Kohat, ANF Peshawar Road check team, stopped a suspected car Suzuki Liana and recovered 28.8 kilograms of chars during the search of the car. Drug was concealed inside the improvised cavities of the car. A person on board named Muzamil Khan, resident of Orakzai Agency was also caught during the operation. It is worth mentioning here that earlier to this Anti Narcotics Forces has also recovered 80 kilogram chars in separate crackdowns.