6 oct final cb pages

Daily on www.customsbulletin.com

Find us on

PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

Daily

Vol 1 Issue No. 195

Karachi, Tue October 06, 2015

KARACHI

AFTAB CHANNA

www.customsbulletin.com

T

he Model Customs Collectorate (MCC) of Port Qasim has collected around Rs 24.794 billion in September 2015 against the given target of Rs 29.317 billion.

As per details, MCC Port Qasim has missed the target of around Rs 5 billion, however it is expected that the MCC PMBQ would fill the revenue gap by next month.

According to the statistics, the MCC Port Muhammad

Price Rs. 14.00

Bin Qasim collected revenue of Rs 7252.91 million under the head of customs duty in the month of September against the set target of Rs 7195.98 million.

And, under the head of sales tax, the MCC PMBQ collected Rs 13831.63 million against the target of Rs 17103.20 million in September 2015.

Moreover, Rs 248.26 million was collected against the target of Rs 1207.98 million under head of Federal Excise Duty (FED) in the month of September 2015. The MCC PMBQ collected Rs 3462.18 million as income tax against the set target of Rs 3810.81 million.

Dr Asif Mehmood Jah given reception for his social services

SHC seek comments from Customs authorities on valuation ruling

Pakistan’s fiscal deficit to drop to 3.5% by 2017, WB predicts

PCA detects taxes, duty evasion of Rs 505.71m in Sept: Gul Rehman

Thai delegation visits ICCI to explore investment opportunities

Desk Editors Forum Lahore held a reception in honour of Dr Asif Jah . | SEE PAGE 02 |

SHC sought comments from Customs on a petition against VR No. 488/2012. | SEE PAGE 03 |

WB has predicted fiscal deficit of Pakistan would decrease to 3.5% of GDP. | SEE PAGE 04 |

The Customs Directorate of PCA Karachi has detected evasion of taxes. | SEE PAGE 06 |

A Thai delegation visited ICCI to discuss and explore investment opportunities. | SEE PAGE 09 |

2

www.customsbulletin.com

Sialkot ASO seizes contraband items worth Rs 15m Tuesday, October 6, 2015

National

SIALKOT: The Customs Anti-Smuggling Organisation Sialkot has seized smuggled clothes, electronics, dry fruits, cosmetics, locks, trucks, cars and other valuables worth Rs 15 million during different operations in September 2015. The customs conducted raids following the directions of Collector Ahamd Reza at various important parts, including bridge over Rive Chenab near Gujrat, GT Road, Alam Chowk and Pindi by Pass near Gujranwala during the month of September 2015. According to Superintendent Saifullah, these valuables were smuggled from Afghanistan, India, Iran, China and other countries and were being brought for sale and purchase in different markets in Sialkot, Gujrat, Gujranwala and Lahore markets, when they were seized during the special check by the ASO.

Dr Asif Mehmood Jah given reception for his social services

IR-I suspends registration of 227 companies, tax defaulters ISLAMABAD

MUHAMMAD FAIZAN www.customsbulletin.com

LAHORE

M HAYAT

www.customsbulletin.com

C

D

esk Editors Forum Lahore held a reception in honour of Dr Asif Mehmood Jah Sitara-e-Imtiaz and Collector of Customs Appeals in the acknowledgement of his services to poor and needy people of the country.

On the occasion, Desk Editors Forum Lahore President Ch Aslam said that Asif Jah has contributed valuable services for the restoration of ailing humanity.

He said government of Pakistan has done a great job by conferring Sitar-e-Imtiaz upon Dr Asif Jah that will further encourage him to do more for the welfare of poor and destitute people of Pakistan.

Ch Aslam said that Dr Asif Jah was not only serving the down trodden people of the society but also making his mark as a bureaucrat in the Customs Department.

Speaking on the occasion Dr Asif Jah said that he has devoted his entire life for the needy and helpless people and he will go to every extent in this regard.

On this occasion a large number of senior journalists including

ommissioner Inland Revenue- I (IR-I), Regional Tax Office Qasim Raza Khan has blacklisted and suspended registration of 227 companies and tax defaulters which failed to submit their tax returns and excise duty for the year 2012-2013.

As per details, Commissioner IR has issued number of show-cause notices to these companies and tax defaulters but no one has submitted its reply till the given date in this regard. Due to non-cooperation of defaulters, the IR has suspended their registration at first under Sales Tax Act-1990 Section 2(21), and a grace period was given to them to submit their replies. After that the IR blacklisted these companies and tax defaulters by using General Sales Tax clause III–N of 2004 which included in sales tax rules 2006/12.

The sources further told Customs Today that tax defaulters and companies which are blacklist by IR including Trans World Logistics, Pakistan Bestway Cargo, Nepa Export, Modern Jewelers, Sidra Jewelers, Nasir and Co, Aalam Traders, Fasial Goods, Mohsin Nurseries, Afridi Medical Store, Rai Engineers Contractors (PWD) and dozens of other companies and persons.

Malik Zafar, Ishaq Chaudhary, Imran Yaqoob, Azhar Awan, Asam

Nisar, Ch Muqeem, Babar Mehmood, Arshad Dar, Shabir Us-

mani and Munir Bhatti were present.

Adjudication Collector Wasif issues ONO against Pioneer Textile KARACHI

C

AFTAB CHANNA

www.customsbulletin.com

ollector of Customs Adjudication-I Dr Wasif Memon has issued Order-in-Original (ONO) against M/s Pioneer Textile for evasion of duties, taxes to the tune of Rs 6.3 million for availing inadmissible benefits of Pak-China Free Agreement SRO 659(I)/2007 dated 30.6.2007. A penalty of Rs 500,000 has been imposed on M/s Pioneer Textile.

The Directorate General of Post Clearance Audit Islamabad found

that M/s Pioneer Textile imported various consignments of textile fabrics from China and cleared from MCC-Appraisement West, Karachi vide 21 Goods Declarations.

And whereas audit scrutiny of GDs revealed that M/s Pioneer Textile Mills, Karachi claimed, availed benefits of Pak-China Free Trade Agreement SRO 659(I)/2007 dated 30.6.2007 which was not admissible as the consignor’s name as well as HS Code of the imported goods on the Certificate of Origin were different from those declared in the GDs and the bills of Landing/IGM, according to ONO available withCustoms To-

day. This inadmissible claim of benefit of SRO 659(I)/2007 dated 30.6.2007 resulted in short levy of customs duty Rs 6,051,239, sales tax Rs 181,550 income tax Rs 78,012 i.e. total Rs 6,310,801. M/s Pioneer Textile Mills were issued audit observation to the above effect to which submitted a reply through their counsel, seeking certain clarification, which were sent to the counsel, but no response was received from the importer or their thereafter. M/s Pioneer Textile Mills failed to submit any substantive arguments and failed to defend their case, hence have committed the offence speci-

fied in Section 32(1) & (2) of the Customs Act, 1969, Sections 3, 6 and 11 of the Sales Tax Act, 1990, and Section 148 of Income Tax Ordinance 2001; punishable under clauses (10A) and (14) of Section 156(I) of the Customs Act 1969 read with Section 11, 33 and 34 of the Sales Tax Act, 1990 further read with relevant provisions of Income Tax Ordinance, 2001.

In the light of above reported facts, M/s Pioneer Textile Mills were called upon to show-cause as to why payment of duty and taxes amounting to Rs 6,310,801 may not be recovered/collected from then and pe-

nal action as warranted under the aforementioned provisions of law may not be taken against them.

Advocates Waseem, Ms Saira and Ms Afshan Rani of M/s S.W Law Associates Karachi appeared for hearing on behalf of the respondent but did not submit any written reply to the show-cause notice.

In view of the above, the charges leveled in the show-cause notice stand established. Therefore, M/s Pioneer Textile Mills are directed to immediately deposit short-levied, evaded amount of Rs 6,310,801 in government treasury under section 32(2) of the Customs Act, 1969.

3

www.customsbulletin.com

20 marriage halls sealed in Gujranwala SIALKOT: The administration of the Nandipur Town and Khiyaali Town have sealed as many as 20 marriage halls for not paying their commercial fees to City District Government Gujranwala, besides, serving show cause notices on several other banquet and marriage halls. These sealed marriage halls were located in Gujranwala city’s congested areas including GT Road, Sialkot Road, By Pass Road, Ghor Dor Road, Aroop and Qila Deedar Singh. According to the senior officials, this crackdown was launched on the directives of District Coordination Officer (DCO) Gujranwala M Aamir Jan, as owners of above-mentioned sealed marriage halls had been reluctant to pay their prolonged delayed commercial fees (amounting to millions of rupees) despite the repeated issuance of recovery notices to them by CDG Gujranwala, in this regard.

Taxpayers facing hardships due to malfunctioning of IRIS LAHORE

IMRAN MEHAR

www.customsbulletin.com he taxpayers and tax-practitioners have complained that they are facing difficulties in filing of income tax returns for the financial year 2015-16 due to the new IRIS (Integrated Risk Information System) malfunctioning. The IRIS is very slow and taking long hours to file a return, it is reported.

Documents available with Customs Today disclosed that the IRIS system gets automatically log-out and loss of data entry that requires extra time to re-enter the lost data. It was reported that the IRIS was not working and most of the time it showed server down and failed to update CPR challan deposit. It was said that the IRIS was not generating tax payments challans while most of the National Bank branches were not updated with the newly introduced system of payment through bills.

Due to malfunctioning of IRIS, Lahore Tax Bar Association secretary general Ch Qamaruz Zaman and other office bearers urged the Finance Ministry and Federal Board of Revenue to extend date of filing of returns. The Ministry of Finance and FBR are considering to extend the date of filing of returns upto 31st December, it was said.

T

Multan Customs Adjudication issues notice to cell phone smuggler he Customs Adjudication has served a show-cause notice to a suspect involved in smuggling of cell phones and memory cards worth Rs 14 million.

According to details, the Multan Customs Anti-Smuggling Organisation (ASO) seized branded cell phones and memory cards on August 6 in an antismuggling activity at the Multan International Airport.

Customs Adjudication Additional Collector Fayaz Anwar issued a notice to accused Irfan Aziz, directing him to appear before the court with evidence.

On the other hand, the Customs Adjudication has also directed the seizing officer to appear before the court with a report.

T

Tuesday, October 6, 2015

National

SHC seek comments from customs authorities on valuation ruling KARACHI

MUHAMMAD YOUSAF www.customsbulletin.com

T

he Sindh High Court (SHC) has sought comments from the Customs authorities on a petition challenging the amendment to Valuation Ruling No. 488/2012, increasing customs duty on import of rubber products. Justice Sajjad Ali Shah, who headed a division bench, adjourned the hearing till October 05.

Petitioners M/s Shamshir Chemicals and M/s Fargo Belting Company moved the Court, submitting that they imported ungraded ribbed smoked sheets of rubber and sought their clearance declaring their value under PCT Heading 4001.2100 at US$1.2.

However, the Customs authorities refused to accept the value declared by them, said their counsel adding the authorities assessed the value on the basis of the amended valuation ruling whereby the value of goods was increased to US$ 2.7.

He argued that the amendment was made at whims and wishes of the Customs authorities without following mandatory provisions of the Custom Act. He said that he filed an appeal before the director general of customs valuation against the increase of the value which is pending disposal. The Court was pleaded to set aside the amendment made to the valuing ruling and order provisional release of petitioners’ consignments.

Meanwhile, the Sindh High Court

T

(SHC) has extended till October 26 its interim order, suspending the operation of non-bailable warrants for the arrest of prime suspect in a case pertaining to fraudulent import of pharmaceutical raw material that caused millions of rupees loss to the national exchequer. A single bench of the SHC comprising Justice Naimatullah Phulpoto adjourned the bail petition of Muhammad Ali Chandna for want of time. Chandna moved the court, seeking suspension

Court also extends date of interim order in illegal import of raw material case

Excise collects Rs 30m from token tax defaulters

he Excise and Taxation Department Motor Branch has collected Rs 30 million from token tax defaulters just in one day.

The Excuse Punjab formed 15 special teams for the recovery of token tax from defaulters.

According to the Excise officials, these teams are working in different areas of the city to take action against token tax defaulters. After the relaxation period of one month, the Excise Motor Branch formed these teams for the recovery of taxes

and to aware the general public about their dues. These newly formed teams have started establishing checkpoints in different areas of the city.

Tuesday Excise teams will establish checkpoints at Shahdra Tool Plaza, Jail Road, Thokar Niaz Baig, Barki Road and Ferozepur Road to aware people to clear their token tax as soon as possible.

Excise Motor Branch Director Suhail Arshad directed field staff to keep keen eye on defaulters and

guide them about new token tax system and stickers for their vehicles.

Meanwhile, the Punjab government has extended the last date for the payment of property tax with 5 percent concession till October 31, 2015 to facilitate maximum number of citizens in the province. Official sources told Customs Today that due to Haj, and Eidul Azha holidays and slow process of issuing computerized challans, people could not clear their bills, which led the government to extend the date.

of non-bailable arrest warrants issued by the Special Customs Taxation and Anti-Smuggling Court.

In the bail petition, the suspect’s counsel submitted that the trial court issued non-bailable warrants for Chandna, who is out on pre-arrest bail, due to his absence during hearing of the case despite the fact that he filed an application for condonation of his absence. The court was requested to suspend the operation of the arrest warrants.

SRB collects over Rs 4.12 billion in September BR officials have said that the Sindh Revenue Board (SRB) has collected over Rs 4.12 billion tax in September.

According to the details, after stern orders from the FBR chairman, the SRB has collected over Rs 4 billion taxes in September. As per details, the SRB has collected an amount of Rs 3.38 billion in the first two months of current fiscal year which was Rs 1 billion more than thsame period last year . The SRB had collected over Rs4b in December 2014 which was Rs 1 billion extra than December 2013.

F

4

www.customsbulletin.com

Deadlock between aviation authorities, Palpa continues Tuesday, October 6, 2015

Business

ISLAMABAD: The deadlock between Aviation authorities and Pakistan Airlines Pilot Association (Palpa) continued for another day, cancelling more flights of the nationalflag carrier. PIA Director General Public Affairs Danyal Gilani said that despite sending a formal letter to Capt Amir Hashmi for a meeting with Special Assistant to Prime Minister on Aviation Shujaat Azeem, he did not respond. The Civil Aviation Authority also suspended the licences of two pilots for violation of discipline, however, Gilani said that the PIA authorities has nothing to do with that decision. He said that 95 per cent of PIA flights were on time despite pressure from Palpa.

Pakistan’s fiscal deficit to drop to 3.5% by 2017, WB predicts WASHINGTON

CUSTOMS BULLETIN REPORT www.customsbulletin.com

T

he World Bank, in a latest report, has predicted the fiscal deficit of Pakistan would decrease to 3.5 per cent of the gross domestic product (GDP) by financial year 2017.

The lender also projected a steady growth recovery-cum-low inflation in the next two years, supported by fiscal consolidation and an improving external position.

According to the twice-a-year South Asia Economic Focus report, investment is expected to rise due to operationalization of China Pakistan Economic Corridor (CPEC) and inflation is projected to remain low on the back of low commodity prices, ex-

change rate stability and a prudent fiscal policy.

“Fiscal consolidation is projected to continue over the medium term based on strong tax revenue efforts as well as gradual phasing-out of energy-related subsidies and of contingent liabilities on loss-making SOEs,” the report added.

Resultantly, the report said, the fiscal deficit is expected to decline to

3.5% of GDP by FY 2017. The reduced need for deficit financing should facilitate provision of bank credit to the private sector, leading to increased economic activity.

The government of Prime Minister Nawaz Sharif inherited a record fiscal deficit of 8.8 percent in June, 2013.

The deficit for the 2014-15 was provisionally projected at around 5 percent. The government is aiming 4.3

percent budget deficit target for the current fiscal year. The World Bank projected Pakistan’s economic growth to accelerate to 4.5% in FY 2016 and then further to 4.8% in FY 2017 supported by strong growth in industry and services.

Overall, South Asia is expected to maintain its lead as the fastest-growing region in the world, with economic growth forecasted to accelerate from 7 percent in 2015 to 7.4 percent in 2016. The report said that macroeconomic stability in Pakistan has largely been restored and key external risks are lower. “The record increase in remittances and stable agricultural performance continues to support a steady growth outlook.”

Prospects for continued growth appear reasonably bright, supported by strong fiscal consolidation and improved external position, the report said but added that slowdown in China might affect this outlook.

Banks profit increases by 48% in first six months

T

LAHORE

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he profit of country’s banks soared by 48 per cent during the first six months of the ongoing calendar year.

The banks profit nearly increased to 50 per cent mainly due to high yields on government bonds and sizeable capital gains on stock & bond portfolios. In addition, lagged impact of loan portfolio re-pricing compared to deposit re-pricing also provided support to the profits.

However, higher taxation owing to super tax and flat taxations limited the bottom-line growth to 24% in 1HCY15.

On a sequential basis, PBT of the sector improved by 21% QoQ in 2Q mainly due to 25% higher non-markup income on the back of capital gains realized by various banks. However, higher taxation due to incidence of super tax, provision for which was made in 2Q, dragged the net earnings of the sector by 14% Going forward, it is expected the profitability of the sector to remain flat in next the few quarters, while the absence of heavy capital gains

may drag profits. However, the sector might witness squeezing margins after 2HCY16, when most of the high-yielding PIBs are maturing.

Nonetheless, experts expect the credit demand to pick-up from CY16 due to low interest rate environment, where credit has become cheaper for businesses and individuals.

Further, initiation of Pak-China economic corridor would also increase credit demand in the country. Banks are also expected to gear up their efforts to increase non-markup income, which would reduce their sensitivity to interest rates.

SBP imports advanced machines to detect fake notes

T

KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he central bank has directed the banks to install machines to detect fake notes by 2017 as it has imported advanced machines capable of examining and sorting fake and different amount of currency notes.

Chief Spokesperson for SBP Abid Qamar said the machines were imported to recognise fake currency notes and all the banks had been directed to buy the same modern technological machines for their use. This should be noted that the Senate Standing Committee on Finance had directed SBP to install latest technology machines to examine currency notes by Jan 2017 in all the banks’ branches.

Qamar said SBP had imported six advanced handy machines, and 10 more were in the pipeline, basically to detect fake money with many other features as well like sorting, examining and counting.

The spokesperson refrained from telling the price of the machine and its company considering it non-issue.

Cement sector’s profit surges by 13% to Rs 46.6b T

LAHORE

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he cement sector’s profits surged by 13 per cent YoY to Rs46.6 billion in fiscal year 2015 as compared to 14 per cent growth of last year.

However, export fell by 11.7% YoY to 7.2mn tons due to weak demand from Afghanistan market coupled with anti-dumping duty imposed by South Africa on Pakistan

cement manufacturers. Local cement demand remained strong up by 8.2% to 28.3mn tons emanating from 1) higher public and private sector spending and 2) favourable cement industry dynamics.

Growth in profits was also supported by 1) declining financial charges, down by 31.7% YoY thanks to lower policy rate 2) falling selling and distribution expenses, down by 5.2% due to lower inflation and 3) higher other income up by 23.9% YoY due to increase in dividend in-

come & profits from associates.

In 4QFY15, revenues of 11 listed companies grew by 3% to Rs52.8 billion while net earnings grew by 20% YoY to Rs13.6 billion primarily due to 470bps YoY increase in gross margin. Increase in gross margin was fueled by 1) lower coal prices, 2) cement players’ shift to alternate energy sources like Waste Heat Recovery (WHR), and 3) lower electricity charges, down by 17% YoY. Total industry dispatches are expected to grow by 8.8% to 38.6mn

tons in FY16 primarily due to strong local demand expected from higher infrastructure spending and mega projects including China Pakistan Economic Corridor (CPEC). With stable cement prices and robust local cement demand, we expect sales of Topline Cement Universe to grow by 16%. Manufacturing costs in FY16 are expected to remain benign for the industry to be led by lower energy costs. Lower electricity charges and shift to more efficient sources like WHR would lead to further de-

crease in power and fuel costs for concrete players. Moreover, imported coal prices are expected to remain at lower levels owing to slowdown in China’s growth, which will further drive up margins of cement manufacturers, we believe.

The sample includes 11 out of a total of 19 listed cement companies, representing 95% of the total cement companies’ market capitalization. Other cement companies have either not announced their 4QFY15 results or are adjusted for outliers.

www.customsbulletin.com

ADVERTISEMENT

5

6

Tuesday, October 6, 2015

www.customsbulletin.com

Tuesday, October 6, 2015

www.customsbulletin.com

KARACHI

AFTAB CHANNA

www.customsbulletin.com

T

he Customs Directorate of Post Clearance Audit (PCA) Karachi has detected evasion of taxes and duties to the tune of Rs 505.710 million just in the month of August 2015 against Rs 5 million by the same in September 2014.

In an interview with the Customs Today, Directorate of PCA DirectorKarachi Gul Rehman said that his directorate had detected around 56 cases of tax and duties evasion within a month. However, the same directorate in September 2014 had detected cases worth Rs 5 million. In these cases, the audit observations of some 20 cases and

contravention reports of 36 cases have been issued and the importers, who caused loss to the national exchequer, are directed to pay the short paid amount in 10 days, he said. “There are some 32 cases of short payment of sales tax and corresponding income tax in violation of SRO 1125(I)/20116 dated 31.12.2011.

The countries of origin of the imports are China, USA, Sri Lanka, Indonesia, Thailand, Kuwait, Egypt, Italy, Turkey, Saudi Arabia, Malaysia, Germany, Soma-

lia, Australia, UK, UAE, India and Singapore�, Gul Rehman added.

Moreover, the evasion of short payments of Customs duty and withholding income tax by claiming inadmissible benefits of SRO 638(I)/2005 have also been detected in which the importers evaded millions of rupees.

Furthermore, Gul Rehman says misuse of SRO 678(I)/2004 dated 07.08.2004 for domestic meters which are otherwise included in the locally manufactured list vide CGO No 11/2007 dated 28.8.2007. In this case, the importer alone evaded more than Rs 388.786 million, bringing a major loss to the national kitty. It is pertinent to mention here that Federal Board of Revenue (FBR) had posted Gul Rehman as Director PCA-Karachi in January 2015 and the officer broke all the records as cases of tax evasion was detected to the tune of Rs 1 billion in six months despite the fact that the directorate is facing serious issues like shortage of staff etc.

Audit observations of 20 cases and contravention reports of 36 cases issued, while importers who caused loss to the national exchequer have been told to pay short paid amount within 10 days

7

8

www.customsbulletin.com

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

Good and bad for economy

A

report from the International Monetary Fund says that the economy of Pakistan is gradually picking up after improvement in its fiscal discipline with minimum chances of imminent threat to the economy.

The donor agency has projected the country’s real GDP growth at 4.5 percent this fiscal year thanks to macroeconomic stability, low oil prices, planned improvements in the domestic energy supply and investment related to the China-Pakistan Economic Corridor. The report feared that inflation could increase in coming months with the anticipated stabilization of commodity prices. On another note, a World Bank report about the state of the economy is not very promising and it seems the real situation is still out of the bounds of rating agencies such as Moody’s, Standard and Poor's and Fitch’s reports.

No doubt the present government is taking various initiatives, involving foreign investors to set up economic zones in the country, but how the prevailing energy crisis will end is still a big question for the government. It is good omen that the foreign exchange reserves have crossed $20 billion mark and are increasing due to lower import prices and cheap commodity prices in the international market.

Besides, the new interest rate corridor, introduced by the State Bank of Pakistan, is regarded as a major step toward improvement of the monetary policy framework, leading to greater financial autonomy. However, the donor agency seeks the government to plug loopholes and channels which are used for money laundering and the terror financing in the country.

As a matter of fact, all the donor agencies are seeking the government to introduce structural reforms to achieve high and durable growth over the medium term. The government sought to take step to ensure smooth supply of electricity and gas to the industrial sector and reduce fiscal risks. There is a need to accelerated pace of privatization and restructuring of public sector organizations to improve business climate in the country.

Voices of concern are also being raised against rampant corruption in Pakistan and the government is advised to focus on reforms and try to overcoming structural challenges to arrest the falling exports, increase investment and job opportunities in the country.

The government is already trying to stop tax evasion and enhance tax net, but implementation of vital policies through ‘office orders’ will not serve any purpose, but would worsen the situation.

The recent tax on bank transaction through the office order is fueling resentment among the business community as well as destroying the banking system in the country.

Instead, the government should devise a system of tax collection at source and avoid taking steps which are harmful for the national economy.

Business to business ties with India A

LAHORE

DR AFTAB AFZAL

www.customstoday.com

ccording to newspaper reports, businessmen from Pakistan and India are trying to find grey areas to enhance cooperation in trade and investment and persuade their respective governments to revise their policies towards their immediate neighbour.

The Pakistan India Joint Forum, during its first meeting in June 2013, formed at least 10 task forces to look into trade and investment opportunities in various fields, including agriculture, pharmaceutical, automobiles and financial sector. The prominent businessmen from the two countries have de-

cided to meet every six month and discuss issues and make recommendations for close business cooperation between the private sector of the two nations with active involvement of civil society and other stakeholders. The Pakistan India Joint Business Forum was set up by Pakistan and India in 2012 as a roadmap to improve economic relations between the two rival nations.

According to reports, various Pakistani and Indian companies are already cooperating in business and trade for the mutual benefit and without the involvement of the two governments. The businessmen who were looking for opportunities have been included in official teams to work in unison.

However, despite efforts of the businessmen to enhance cooperation on individual and collective levels, there are problem areas such as frequent cross border firing between troops of the two countries and hostility on the Kashmir issue. The present Indian government has taken an aggressive stance against Pakistan and it is not ready to enter into peace talks with Pakistan. It is trying its best to tarnish Pakistan’s image as a peace loving nation. The recent diatribe by the Indian Prime Minister will not help ease tension in this region; rather it will fuel more troubles to worsen political relations between the two countries. The Indian leadership should understand that a majority of the world’s poor lives in

their country and maintaining an aggressive posture against an immediate neighbor will hinder the wellbeing of their own citizens as funds for the people’s welfare are diverted to defence side.

Experts believe that the two countries can resolve problem of gluts and shortages of yields by cooperating in agriculture sector as the same crop is sowed in different seasons in the two countries whereas across the border trade can be enhanced to billions of dollars by lowering duties and taxes and easing customs procedures. Instead of firing a volley of accusations against Pakistan, India should launch a peace offensive and Pakistan is ever ready to reciprocate in the same manners.

9

www.customsbulletin.com

FPCCI for establishment of Gujranwala-Sheikhupura Motorway SIALKOT: Regional Chairman of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Khawaja Zarar Kaleem has demanded the government to establish motorway between Gujranwala and Sheikhupura for ensuring the socio-economic, human and industrial development in this region. He said that the early establishment of Gujranwala-Sheikhupura Motorway now has become vital. He said that the early end of prevailing energy crisis would help country’s industrial sector to flourish and enhance the national exports as well, paving the way to make Pakistan as an Asian Tiger. He demanded promotion of solar energy systems with action collaboration with Chinese investors for getting maximum production of electricity and energy in the county.

RCCI organising ‘Made in Pakistan’ exhibition in Nepal ith the aim to promote local products in world market, the Rawalpindi Chamber of Commerce and Industry (RCCI) is organising 6th “Made in Pakistan” exhibition in Nepal.

The exhibition would be held at Khatmandu from Oct 6 to 12, while RCCI Exhibition Committee Chairman Chaudhry Abdur Rauf would represent the country. Pakistani ambassador in Nepal and President of Pak-Nepal friendship Association Rana Shamsher Ali will be the chief guest in this exhibition.

RCCI President Mian Humayun Parvez said that Chamber will organize exhibitions on international level to introduce Pakistani products in international markets to increase the export volume. He said that these exhibitions will strengthen the economy of country. RCCI President added that Pakistani products are popular across the globe owing to their best quality. “The industrialists should also be needed not to compromise on quality to increase demand of their products in the international markets,” he said.

W

GCCI ask for improving tax system ujranwala Chamber of Commerce and Industry (GCCI) has demanded immediate change in prevailing tax system for bringing maximum people including traders under the tax net, saying that the change in the tax system now has become vital which should be made friendly and further simplified for facilitating the business community.

Talking to the newsmen, newly elected President GCCI Sami Ullah Chaudhary has also urged the federal govet to take the business community in confidence, besides taking it on board while making the federal budget ensuring the favourable consideration on the budget proposals to be submitted by the business community to government, in this regard. GCCI President also vowed to establish strong mutual trade connection and cooperation liaison with country’s all the chambers of commerce and industry. He said that GCCI would also focus on exploring the new trader markets and ensuring easy access of Gujranwala based exporters to the new international trade markets.

G

Tuesday, October 6, 2015

Chambers

Thai delegation visits ICCI to explore investment opportunities ISLAMABAD

CUSTOMS BULLETIN REPORT www.customsbulletin.com

A

Thai delegation led by Ms. Chollada Areerajjakul, Executive Director, Board of Investment of Thailand along with representatives of Billiger and Company of Thailand visited Islamabad Chamber of Commerce and Industry to discuss and explore investment opportunities in Pakistan with special interest in food, processed agricultural products, textiles and clothing, construction, pharmaceutical and jewelry.

Speaking at the occasion, Ms. Chollada Areerajjakul, Executive Director, Thai Board of Investment and delegation members said that they consider Pakistan a potential country for investment and have come to explore opportunities for Thai investors. They said Indian pharmaceutical companies have entered in Thailand and stressed that Pakistani manufacturers of pharmaceuticals and other products should improve quality of their products to get better

penetration in Thailand market.

They said Pakistan and Thailand have started negotiations for signing a Free Trade Agreement and hoped that FTA would help in boosting the bilateral trade between the two countries.

Addressing the Thai delegation, Atif Ikram Sheikh, President, Islam-

abad Chamber of Commerce and Industry stressed upon the need of regular exchange of trade delegations between Pakistan and Thailand to find out all potential areas of mutual cooperation and to improve bilateral trade. Sheikh Pervez Ahmed Senior Vice President and Sheikh Abdul Waheed Vice President ICCI said that

LCCI lauds Sundas Foundation’s services to ailing humanity

T

LAHORE

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he Lahore Chamber of Commerce and Industry would continue to fulfill its corporate social responsibilities in a winsome manner. Organizations like Sundas Foundation are like a ray hope because of their matchless services to ailing humanity.

These views were expressed by the LCCI president Sheikh Muhammad Arshad and vice president Nasir Saeed while talking to the Chairman of Sundas Foundation Monoo Bhai here at the Lahore Chamber of Commerce and Industry.

Sheikh Muhammad Arshad said

that the Lahore Chamber of Commerce and Industry is not only playing a leading role for the promotion of trade and industry but is also quite active in the social sector.

He said that the LCCI would extend maximum cooperation to the Sundas Foundation in its endeavor for provision of health facilities to the ailing humanity.

While paying rich tributes to Sundas Foundation for providing free services to the Thalassemia patients, the LCCI vice president Nasir Saeed said that government should ensure that the citizens are provided with a free-of charge blood screening facility.

He also stressed the need for public awareness campaign to

make the country free from this disease. He said that today, millions of children across the world were suffering from Hemophilia, which needed immediate attention of the nations individually and collectively.

The LCCI president Sheikh Muhammad Arshad said that increase in number of patients is a matter of grave concern therefore every citizen should play his role proactively to eradicate this menace.

He said that Western countries have controlled to disease to the extent through innovative methodologies and Pakistan government should also take cure from them to overcome the challenge.

Pakistan and Thailand have the potential to become hubs of trade and investment as they enjoyed strategic location in their respective regions. They stressed that both countries should encourage direct linkages between their private sectors to promote trade and investment up to real potential.

Farmers be facilitated to boost agri production: Shahid Butt asy loan schemes for farmers can help boost agricultural production as the developed nations facilitate farmers to improve their standard of living. This was stated

by Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt in a statement. He said that Pakistan lags behind as farming communities still prefer informal financial sources to formal financial markets to get loans that are costly but easily accessible. Butt said that affordable financial resources can facilitate agricultural growth by improving productivity which will promote overall economic growth by supporting other critical sectors. Relationship between finances and development is evident therefore farmers cannot be left of mercy of informal lenders, he said, adding that govt must pay attention to agri-reforms, encourage R&D, design new products for rural population and pay attention to rising input costs.

E

10

www.customsbulletin.com

Ireland Customs seizes €20,000 worth of cigarettes at Dublin Airport Tuesday, October 6, 2015

World

DUBLIN: Revenue officers seized €20,000 worth of cigarettes at Dublin Airport on Tuesday. They discovered the 40,000 cigarettes in the baggage of four Lithuanian nationals, who had arrived on a flight from Copenhagen. The ‘Kent’, ‘Marlboro Gold’ and ‘Winston’ cigarettes were found in the luggage of two females aged 36 and 64 and two males, aged 41 and 63. All four individuals yesterday appeared before Judge Hugh O’Donnell in the Criminal Courts of Justice charged with the illegal importation of cigarettes. They were remanded in custody to appear in court again on Friday 2 October. It is the most recent big haul for customs who have seized a large number of goods in recent weeks. Earlier this month they found over €1million of cocaine at Dublin Port, just under two weeks after discovering 1.9 kilos of the drug at Dublin Airport.

New US Customs inspection Customs seizes station opens at Florida’s Fort boat, booze and drugs at George Town Port S

LONDON

CUSTOMS BULLETIN REPORT www.customsbulletin.com

NEW YORK

CUSTOMS BULLETIN REPORT www.customsbulletin.com

A

new U.S. customs inspection station opened on October 1 at Florida’s Fort Lauderdale Executive Airport (FXE), which is home to approximately 280 business jets. Along with the new 7,900-

French Customs seizes 115 black scorpions at airport ustoms agents at Paris' Charles de Gaulle airport have seized 115 live scorpions hidden in two shipments from Cameroon to the U.S., perhaps destined for sale on the Internet.

Customs officers showed off the large, black scorpions of the Pandinus dictator variety - a protected species - on Thursday.

The first batch of 69 scorpions was discovered Sept. 18 in 19 plastic boxes containing centipedes.

Days later, customs agents intercepted 46 scorpions found in 35 plastic cups. Both were declared as samples for medical research.

However, the recipient was identified as individual in the United States who sells numerous "new animal companions" on the Internet. Last year, French customs seized 1,392 live animals protected by the Convention on International Trade in Endangered Species.

C

sq-ft location comes increased hours of operation.

Florida’s Fort Lauderdale Executive Airport (FXE), home to approximately 280 business jets, saw the opening today of its new U.S. customs inspection station. Located at the east end of Taxiway G on the airside and at 5301 East Perimeter Road by land, the expanded $5.6 million facility will be adaptable to future workloads, technologies and

operational needs, according to the U.S. Customs and Border Protection (CBP) agency.

“The City of Fort Lauderdale has been a tremendous partner by providing a facility with style and functionality, that is one of the best equipped facilities in the country,” said CBP port director Jorge Roig.

“We look forward to building on our partnership to better serve our community.”

Chinese Customs detains 14 for smuggling edible bird's nests

C

ustoms police in south China's Guangdong Province have detained 14 people who allegedly smuggled a large amount of bird’s nests into China, a lavish delicacy often used in soup.

In mid-September, customs police at Gongbei Port seized more than 700 kilograms of edible bird's nests produced in Indonesia, worth more than

100 million yuan (about US$15.7 million). The nests were purchased in Hong Kong, transported to Macao and illegally brought to the mainland via the Gongbei Port starting April last year. The suspects evaded an estimated 40 million yuan in taxes, allowing them to sell the nests at a price thousands of yuan per kilogram cheaper than legal imports.

even Honduran nationals have been arrested by customs officers following the discovery of a quantity of drugs, fish and illegal alcohol aboard a 50-foot fishing vessel in local waters.

The boat has also been seized, Collector of Customs Charles Clifford has confirmed.

On Tuesday 29 September when the vessel came into George Town Port, during the clearance process, customs officers became suspicious and initiated a full search of the boat and crew, which led to the

discovery and arrests.

Clifford said the Customs Seaport, K-9 Unit and the Customs Narcotics Enforcement Unit (CNET) officers carried out the intervention and detection. “We will continue to focus on protecting our borders and those found in contravention of the various laws must realize that the rule of law shall prevail,” Clifford warned.

No further details were given as the collector said the investigation has the potential to be protracted.

There was one woman among the seven arrested and only one person from the group has been bailed. The rest are currently held in custody.

Lebanon customs arrests man trying to smuggle liquid cocaine at Beirut airport BEIRUT

C

CUSTOMS BULLETIN REPORT www.customsbulletin.com

ustoms officials at Beirut's international airport Saturday arrested a passenger who is suspected of trying to smuggle liquid cocaine into Lebanon, state media said.

The National News Agency said the 33-year-old passenger, who was identified by his initials D.A.B., traveled from Brazil to the

Ethiopian capital Addis Ababa en route to Lebanon.

The suspect was arrested after he landed in Beirut, confiscating his baggage that contained clothes soaked in a suspicious liquid, which is suspected to be liquid cocaine.

The overall weight of the liquidsoaked clothes was about 40 kilograms, which Customs estimated to be worth LL200 million ($133,333). The suspected was handed over to Anti-Drug Bureau for questioning.

Azerbaijan, Turkey to help customs control at BTK railway

T BAKU

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he customs control procedure on the Baku-Tbilisi-Kars (BTK) railway will be simplified, Turkish Minister for Trade and Customs Cenap Ascı, on a visit to Baku, told Trend Oct. 3.

"We will mutually exchange the

information on cargo,” he said. “The customs control results of one side will be recognized by other side.

We do not plan to replace the carriages and unload the supplied goods under customs control procedure. This will significantly speed up the process of control."

Ascı also discussed the passport control procedure of future passengers of the Baku-Tbilisi-Kars

railway and said that it is possible to simplify this procedure in the future. "Initially, the passport control procedure will be carried out at the border crossings,” he said.

“It will be held at an accelerated rate. In the future it is possible to conduct the passport control procedure in the arrival and departure points. But it is important for the relevant bodies of the two countries

to agree on mutual recognition of the passport control results." Ascı said that first of all, it is necessary to simplify the cargo transportation via BTK as they are the main objective of the project.

“Therefore, it is important to simplify the customs procedures.

But we will take measures to simplify the passport control procedures for passengers."

11

www.customsbulletin.com

Hamburg’s port shipbuilding process in progress HAMBURG: A breaking video released by the Port of Hamburg shows its process for building an ‘icebreaker’ ship. The port is in the process of renewing its icebreaker fleet as the original ships were built in 1950s and have reached the end of the shelf life. It is essential for the ships to modernised as they are vital for transporting goods via canals. Due to regulations, the ships were extended and widened, while at the same time ensuring that the draft remains the same.

Shipments of large size monitors rising due to demand in China emand has shifted towards products with larger sizes in the 2015 LCD monitor market. According to WitsView, the share of models sized 23-inch and above in global monitor shipments has increased to upwards of 40% in the third quarter of 2015. The 27-inch and larger segment in particular has seen the largest increase in its share of the total shipments.

A year ago, this segment accounted for just 6.8% of the annual shipments worldwide. In 2015, however, rising demand from Internet cafes in China is supporting the large-size market. Moreover, shipments of large-size niche products such as curved-screen monitors have picked up.

Consequently, the share of the 27-inch and larger segment in the total monitor shipments increased to 9.5% by the end of the second quarter and surpassed 10% in the third quarter of 2015. “Within the 27inch and greater segment, the growth of 32-inch products continues to accelerate mainly because of demand from China Internet cafes,” said Anita Wang, research manager at WitsView. “The display panel industry is adding new capacities, leading to an abundant supply of inexpensive panels. TV panels of 32-inch in particular are now priced much lower than 27-inch monitor panels, which are mainstream in China Internet cafes. Therefore, branded monitor vendors are now using 32-inch TV panels to make higher-margin products, resulting in impressive shipment growth for 32-inch monitor sets.

D

DP World orders 238 Terberg terminal tractors for Jebel Ali DUBAI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

D

Tuesday, October 6, 2015

Fremantle ports reveal record after-tax profit of more than $48m for last financial year HONG KONG

CUSTOMS BULLETIN REPORT www.customsbulletin.com

F

remantle Ports has revealed a record after-tax profit of more than $48 million for last financial year, following an increase in overall trade of 6.7 per cent.

The Opposition seized on the result, saying it raised further questions about the Government’s plan to sell the state’s largest container port.

Fremantle Ports’ latest annual report, tabled in State Parliament, revealed it contributed $68.4 million in tax equivalents and dividends to the WA Government in 2014-15.

“The average annual growth in Fremantle’s container trade over the past decade has been about 4.7 per cent and the 5.7 per cent increase in 2014-15 was ahead of forecasts despite the slowing of the Western Australian economy,” Fremantle Ports chief executive Chris Leatt-Hayter said in the report.

The strong growth meant a better than expected after-tax profit of $48.1 million, significantly higher than the target of $27.7 million.

It was also a massive 27 per cent jump on the previous year’s after-

tax profit of $37.9 million.

Despite Premier Colin Barnett previously ruling out any sale of Fremantle Port, the Government announced its intention to sell the asset, through a 49-year lease, in the May state budget.

Profit proves port should not be sold: Opposition The Opposition’s port spokesman Bill Johnston said the strong financial result was further evidence the port should not be sold. “It certainly raises many questions about why the Government would be planning to sell it,” he said.

“Clearly they’re planning on a fire sale because they’re in deep financial problems because of their bad management.

“If you sell it you lose the tax payments, they’ll go to the Commonwealth Government and the state will be worse off.

“Also, if a monopoly owner has control of the port, it will delay the construction of the outer harbour which is absolutely needed for this state’s development.”

Treasurer Mike Nahan welcomed the increased profit and defended the decision to sell the port.

Port of Tallinn seeks new leaders after corruption allegations he supervisory board of the Port of Tallinn has announced it is looking for a new chairman of its management board.

Two members of its old management board, CEO Ain Kaljurand and his deputy Allan Kill resigned on August 27, 2015, after allegations of corruption were levelled against them and their homes and offices were searched by police.

The allegations relate to the awarding of a contract to build four ferries, which were built in Poland and Turkey.

They have been replaced on a temporary basis by CFO Marko Raid and lawyer Carri Ginter who have been tasked with cooperating with investigations into corruption and reviewing the port’s internal process and carrying out reforms if necessary.

T

China’s Shanghai port handles more containers in September hanghai port, the world’s busiest container port, has moved higher container throughput in September, according to figures released by Shanghai International Port (Group) Co (SIPG).

The Chinese port handled 3.16m teu of shipping containers in August, an increase of 1.6% compared to 3.11m teu recorded in the same month of 2014, data from SIPG showed. Last month’s volumes also went up compared to 3.12m teu posted in July this year.

S

Threat of strike at S Korea’s Busan port raises bunker prices

T SEOUL

CUSTOMS BULLETIN REPORT www.customsbulletin.com

P World has ordered 238 terminal tractors for its flagship port Jebeli Ali from Dutch manufacturer Terberg Special Vehicles.

The order is DP World’s biggest yard tractor order and Terberg’s biggest ever order. The YT222 tractors will be delivered in batches starting from November 2015 through to March 2016.

All the tractors will be fitted with Continental terminal tyres which, Terberg said, showed significantly longer lifetime than standard tyres in a trial period.

Ports & Shipping

he threat of a possible strike to be led by bunker fuel barge operators on October 5 at South Korea’s southeastern port of Busan has raised concerns about bunker fuel disruption and shored up prices, South Korean traders said Friday morning.

During the Platts Market On Close assessment process Thursday, the South Korean 380 CST delivered bunker fuel grade was assessed at a one-month high of $276.50/mt, up

$11/mt from Wednesday.

South Korean 380 CST delivered bunker fuel prices were last higher on September 1, 2015, at $280/mt.

It is understood that the dispute between barge operators and South Korean refiners arose over barge operating fees paid to barge companies that they deemed too low. Traders said that barge operators and refiners, among other parties, met Thursday in a bid to reach a settlement over the issue, but talks were inconclusive. “There were no agreements between parties yesterday [Thursday] and while there have been more talks scheduled for today and tomor-

row, it’s not going well, so it looks like the strike is going ahead on October 5,” a South Korean trader said Friday morning.

“Refiners are offering bunker fuel cargoes but it’s all subject to barge strikes … they don’t want to offer low prices because they know there’s a high chance of the strike happening, so they are just offering at high prices,” he said.

The duration of the strike at Busan, should it proceed, could not be confirmed Thursday.

While the strike action is concentrated at Busan, sources said it was heard that the barge operators were

urging counterparts at other ports to join in as well.

“If Busan [barge operators] go on strike, Ulsan and Yosu may be impacted as well, as they [the barge operators] are pushing them there to go on strike too,” another South Korea-based source said late Thursday, adding that this was possible due to geographical proximity, with Ulsan “only around five hours sailing time away from Busan.”

Sources said continuing uncertainty over the simmering issue was keeping sentiment for bunker fuel bullish and providing a floor to the market.

12

www.customsbulletin.com

4 additional, deputy collectors reshuffled in Lahore LAHORE: Collector of Customs Preventive Lahore reshuffled 4 additional and deputy collectors, sources said here Friday. According to details collector of customs Lahore Preventive Mukarram Jah Ansari issued orders of internal transfers and posting of four additional and deputy collectors. The collector transferred ADC Sadia Munib from Land Freight Unit (LFU) and posted Air Freight Unit (AFU) while ADC Jamil Nasir has been transferred from AFU to LFU. The collector also transferred and posted DC Shafiqur Rehman from LFU Wagha to LFU Lahore Airport while DC Iram Sohail has been transferred to LFU Wagha.

Tuesday, October 6, 2015

CUSTOMS BULLETIN

Collector Sarfraz’s Multan Customs collects Rs 3.546b revenue in Sept Collector Sarfraz Ahmad Warraich says Multan Customs aims to excel by performing brilliantly through achieving the goals set by the FBR MULTAN

IMRAN ALI KHAN

www.customsbulletin.com

T

he Model of Customs Collectorate Multan has collected more revenue of Rs 3546.2 million during the month of September.

The Model of Customs Collectorate Multan collected customs duty amounting to Rs 860.61 million against the target of Rs 1006.98 million in September. Almost 86 percent customs duty target achieved by the Model of Customs Collectorate Multan for the duration of September in the on-going financial year 2015-16.

The Model of Customs Collectorate Multan collected Rs 706.87 million of customs duty during the corresponding fiscal year 2014-15.

Nearly 22 percent higher collection accomplished by Model of Customs Collectorate Multan in the on-going financial year 2015-16 due to extra ordinary efforts of Collector Sarfraz Ahmad Warraich.

Sales tax to the tune of Rs 2673.57 million was collected against the target of Rs 1997.71 million during the month of Septem-

ber. The Model of Customs Collectorate Multan collected 134 percent sales tax revenue than the assign target in the month of September.

Net collection of sales tax shown almost 34 percent increase in the month of September during corresponding year 2014-15.

Official statistics of the Model of Customs Collectorate Multan show that net collection of Income tax to the volume of Rs 8.61 million

against the assign target of Rs 33.50 million during the economic year 2015-16. The Model of Customs Collectorate Multan realized the 26 percent income tax target during the month of September in the ongoing fiscal year 2015-16.

About Rs 3.41 million of federal excise duty attained during the month of September against the assign target of Rs 9.51 million.

Collector Sarfraz Ahmad Warraich MCC Multan informed that Collectorate realized remarkable development in regards of Revenue Collection particularly with reference to July and August and September 2015 in comparison with July, August and September 2014. The Model of Customs Collectorate Multan collected the revenue of Rs 3546.2 million during the month of September including customs duty, sales tax, federal excise duty and Income taxes. About Rs.3546.2 million revenue of target was given to the Model of Customs Collectorate Multan for the duration of the month of September.

Collector Sarfraz Ahmad Warraich told Customs Today that MCC Multan aims to excel by performing brilliantly through achieving the set goals of Federal Board of Revenue and even a step ahead.

Court adjourns hearing of Rs 35b gold smuggling case until Oct 9 KARACHI

T

MUHAMMAD YOUSAF www.customsbulletin.com

he Special Court of Customs Taxation and Anti-Smuggling on Friday put off till October 9 a case pertaining to the smuggling of gold worth Rs 35 billion.

The bail application of suspects Muhammad Zubair and Wajahat Minhas, who are behind bars, was listed for hearing but they could not be heard due to absence of their counsel.

According to the prosecution, the Federal Investigation Agency (FIA) Corporate Crime Circle registered an FIR under Section 156(1) (8), 32/32-A punishable under Section 156(1) (14) of Customs Act 1969 against them.

An inquiry conducted by FIA established that Muhammad Shakeel, the deputy director of the Trade Development Authority of Pakistan, Karachi, registered the firms M/S Rayyan Collection, M/S Atta Casting, M/S Ather Jewellers and M/S Al Huda Bangles as exporters under Section 3 of the SRO 266(1)2001 dated May 7,

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

2001, to export gold, silver and platinum jewellery and precious stones without fulfilling legal requirements of the licenses.

The alleged gold traders exported 23 karat gold jewellery worth Rs 35 billion to UAE during the period between 2011 and 2012 on fake E-forms as no foreign proceeds returned to the country as an outcome of the gold export.

Muhammad Shakeel, Abdul Qadir, Akmal Aziz, Muhammad Zahid and other accused persons have already been released on bail.