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Daily
Vol 1 Issue No. 197
Karachi, Thursday October 08, 2015
LAHORE
MUHAMMAD NAWAZ www.customsbulletin.com
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BR Regional Tax Office-I (RTO-I) recovered Rs 105.7 million by attaching the bank accounts of Pakistan Engineering Company. The RTO-I has frozen the bank accounts of Pakistan Engineering Company in July in order to recover the evaded tax. Earlier, RTO-I issued notice to the accused company for the payment of income tax but it ignored the notices to avoid the taxes; therefore, department taking action recovered evaded tax by attaching bank account. The company was not paying the taxes since
Price Rs. 14.00
2010. The FBR recovered the amount from the United Bank’s Regal Chowk Lahore branch. Meanwhile, the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR) has started audit of big hospitals in Lahore of Financial year 2015-16 to check their tax proofs. The FBR decided to investigate hospitals tax liabilities for 2015-16 and in case of discrepancies the department will send show-cause notices to the hospitals or will attach bank accounts. Earlier, the FBR Regional Tax Office-I (RTO-I) froze the bank accounts of Rasheed Hospital due to tax evasion of Rs 22.6 million. The RTO-I has conducted an audit of Rasheed Hospital’s previous record and found that Rs 22.6 million are still pending by the Hospital since 2009.
Faisalabad Collector Zulfiqar Ali reshuffles 16 inspectors
Government to provide relief to export-oriented sector: Khurram
Five million traders to be brought under tax net: Dar
Multan ASO seizes items worth Rs 12.4m on Collector Sarfraz’s orders
Sialkot Customs to clear all pending rebates: Collector Ahmad Reza
Collector Zulfiqar Ali reshuffles officials with immediate effect. | See pAge 02 |
Minister says relief will be announced by the prime minister during this week. | See pAge 03 |
Government is taking measures to bring five million traders into tax net. | See pAge 04 |
ASO seized goods during September in various anti-smuggling activities. | See pAge 06 |
Collector Reza says Rs 600m issued to traders in Sept in the wake of rebates. | See pAge 12 |
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Sindh Excise faces shortage of staff Thursday, October 8, 2015
National
KARACHI: Excise and Taxation Department (ET)Sindh is facing shortage of staff due to customers are facing great hardships for clearance of their documents. Talking to Customs Today Property tax section incharge West district Sulaiman Khaskhaili said that it is in notice of the Sindh government and other relevant authorities on the shortage of staff. Last year 29 staff members of different sections of Excise Sindh retired while 13 staff members retired from their services this year. Due to the shortage of staff, one staff member have to perform duties of others staf members which cause delay in work. He further told that government should appoint fresh staff even on daily wages only to reduce the work load on other staff members.
faisalabad collector Zulfiqar Ali reshuffles 16 officials
Customs Court extends judicial remand of alleged smuggler LAHORE
iMrAN MeHAr
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FAISALABAD
NAeeM SHeikH
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he Special Federal Court of Customs Taxation and Anti Smuggling approved judicial remand of an alleged smuggler and ordered to send him to jail for 14 days on extended judicial remand. Sources told Customs Today that an accused Ghafar Khan son of Durrani was arrested by the Federal Investigation Agency on charges of smuggling of different items from central Asia through KPK province and Chaman. Different items worth more than 6 million were also recovered from the accused when he was arrested by the FIA anti smuggling cell. For investigations Federal Investigation Agency produced him before the Court and asked for more time to present complete challan of the case. The Special Court approved more judicial remand and sends him to jail again for further trial. FIA registered a case against Ghaffar Khan under section of 156, C, 89, and 98 of Customs Act. Ghaffar Khan will be again presented before the Court after three days.
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he Collector Model Customs Collectorate Faisalabad Zulfiqar Ali Chaudhary has reshuffled as many as 16 inspectors with immediate effect. According to the details, inspector Amjad Iqbal Cheema has been posted from MCC Faisalabad to import examination, while Zullafqar Ali was also shifted from rebate section to import examination Faisalabad. Similarly, Inspector Iftikhar Ahmed and Irfan Idrees have been transferred from Collectorate of Adjudication to import examination. Furthermore, Inspector Muhammad Akram was assigned task at import examination by shifted him from Anti-Smuggling Organisation; however, Inspector Khalid Ashraf Noor has been posted from examination branch to recovery branch. Inspector Muhammad Asif Hussain has been assigned task at airport from ASO Faisalabad, while Inspector Muhammad Ramzan was shifted from ASO Faisalabad to audit and law branch. Inspector Muhammad Mansha from ASO Sargodha to rebate branch, Ansar Saleemi from ASO Mianwali to Faisalabad Adjudication,
FBR recovers Rs 105.7m by attaching account of Pakistan Engineering BR Regional Tax Office-I (RTO-I) recovered Rs 105.7 million by attaching the bank accounts of Pakistan Engineering Company. The RTO-I has frozen the bank accounts of Pakistan Engineering Company in July in order to recover the evaded tax. Earlier, RTO-I issued notice to the accused company for the payment of income tax but it ignored the notices to avoid the taxes; therefore, department taking action recovered evaded tax by attaching bank account.
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Zullafqar Ali from import examination to adjudication, Asghar Mehdi Naqvi from ASO Sara-e- Muhajir to
dry port, Umar Bhatti from ASO Sara-e- Mohajir to recovery branch, Muhammad Khalid from audit
branch to airport and Muhammad Riaz has been posted from export branch to gate security.
Customs ordered to unblock NTN of AK Industries KARACHI
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MUHAMMAD YoUSAf www.customsbulletin.com
he Sindh High Court (SHC) has ordered the customs authorities to unblock the National Tax Number (NTN) of AK Fashion Apparel Industries. The court gave this direction on the petition filed by AK Fashion Apparel Industries through which it moved the court against Pakistan Customs for blocking its NTN. The petitioner’s counsel submitted that his client was alleged to have evaded custom duty and
taxes amounting to Rs 6.997 million and subsequently legal proceedings were initiated against it. As a result, the custom adjudicating officer issued an Order-inOriginal, directing the importer to make payment of evaded duty and taxes, redemption fine and Rs 500, 000 imposed as fine on it. Subsequently, he said, the importer challenged the ONO before the Customs Appellate Tribunal and the appeal is yet to be heard. However, the customs authorities issued notice to the importer for recovery of the amount and blocked its NTN unlawfully.
When the matter is subjudice before the tribunal, the customs authorities cannot take any adverse action against the petitioner, argued the counsel requesting the court to order unblocking of its NTN so that it could resume its business activities. The customs authorities submitted that the importer was involved in clearance of fabric imported from China by mis-declaring its quantity and value and claimed undue benefit of SRO 1125(I)/2011 and through Pak-China FTA under SRO 659(I)/2007.
Customs not to block user IDs without hearing counter views hile changing its course of action, the Pakistan Customs has decided not to block the user IDs of the custom agents directly without hearing their point of view in future, it is learnt. In the past, it was noticed that the Model Customs Collectorate Appraisement West and East used to block the IDs of the custom agents without prior show cause notices for want to recovery. However, from now onwards, the custom agents, if found, involved in short payment of levies, be issued a show cause for hearing and then the process of blocking IDs will take place, sources told Customs Today. The suggestion to this effect came from Karachi Custom Agents Association (KCAA) in a meeting with Collector Model Customs Collectorate Appraisement West Uwais Jawwad Agha in the recent days, sources added.
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Gwadar Customs seizes smuggled goods worth Rs 70m KARACHI: Model Customs Collectorate (MCC) Gawadar has confiscated wine, gutka, diesel, break oil, and smuggled generators worth Rs 70 million in September. According to the details, Customs has confiscated 1, 96000 liters of Iranian diesel from different godowns and also seized seven oil tankers loaded with 3,32000 liters of smuggled Iranian diesel. The sources further told Customs Today, that Gawadar collectorate along-with Maritime Security Agency (MSA) personnel raided different places and impounded 5000 bottles of wine worth Rs 21.4 million while 10,000 cartons of beverages. Sources further added that during a raid customs seized imported cigarettes and gutaka worth Rs 5.5 million during the month of September.
PCA staff awaiting transfers, postings for six years ransfers and posting of Post Clearance Audit (PAC) officials held in abeyance depriving the officials of their right to learn about works in other sections of their department. As many as 30 officials of all cadres including deputy directors, assistant directors, superintendents, deputy superintendents and inspectors are working in the same department for last many years. Deputy Superintendents Abdul Qadir, Hassan Muhammad, Babar Rasheed and Amir Saeed Jafri are working in PCA for the more than six years while others including deputy director Sumaira Omar, IRAOs Babar, Agha Ahsan Mehmood, Arshad Malik and Waqas Jalani are serving the PCA for more than 3 years. Sources on the condition of anonymity told Customs Today that earlier, transfers and posting under BPS 16 were undertaken at the local level but since the Federal Board of Revenue has taken back the powers from the chief commissioners and chief collectors, the PCA like sections of the customs have lost attention of the authorities . They added that normally transfers and postings get matured after a period of three years in any government department.
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fBr starts audit of big hospitals for fY 2015-16 LAHORE
MUHAMMAD NAWAZ
Thursday, October 8, 2015
National
government to provide relief to export-oriented sector: khurram LAHORE
M HAYAt
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ederal Minister for Commerce Engineer Khurram Dastiger Khan said that federal government decided to provide relief to export oriented sector which will be announced by the Prime Minister during this week. He was addressing the opening ceremony of the 4-day Pakistan Carpet Exhibition organized by the Carpet Manufacturers and Exporters Association (PCMEA) at a hotel. The newly elected PCMEA chairman Khawaja Shakir, senior vice chairman Atiqur Rehman, exhibition committee chairman Major (Retd) Akhtar Nazir Khan Cooki, exhibition chief organizer, Qamar Zia and PCMEA former chairman Usman Ghani were also present there. The minister urged the carpet industry to focus on value addition as without it Pakistan cannot increase its export. He said that trade fairs represent a significant opportunity for exporters to enhance their brand and product visibility and to promote new and existing products.
The government is all along with the carpet industry and will try to facilitate at its maximum to hold exhibitions in the country to create soft image of Pakistan. He said that carpet fair will not only facilitate the entrepreneurs and business owners but also highlight
the soft image of the country. The exhibition will provide an excellent opportunity of connecting in the areas of interest, he added. Khurram Dasgir said carpet exhibition could help put the economy on track because fairs were the key to exhibit the untapped
potentials of Pakistan and to introduce Pakistan’s products in the world market. The minister said that the government will continue to work with the people in the carpet industry to make the business environment more exportfriendly.
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he Regional Tax Office (RTO) of the Federal Board of Revenue (FBR) has started audit of big hospitals in Lahore of Financial year 2015-16 to check their tax proofs. The FBR decided to investigate hospitals tax liabilities for 2015-16 and in case of discrepancies the department will send show-cause notices to the hospitals or will attach bank accounts. Earlier, the FBR has frozen the bank accounts of Rasheed Hospital after finding irregularities. The Regional Tax Office (RTO) has started audit of National Hospital, Omer Hospital, Doctors Hospital and Family Hospital of Financial Year 2014-15.
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gujranwala rto to bring 7,000 new people into the tax net
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GUJRANWALA
ZAfAr MALik
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he Federal Board of Revenue (FBR) has given official target of bringing 7,500 new taxpayers in Gujranwala region and 7,000 in Sialkot region under the tax net. Besides, a plan has been approved to establish new branches at the regional tax directorates in Sialkot and Gujranwala to facilitate the new taxpayers at the local level.
According to the senior FBR officials, the Gujranwala Regional Taxation Office (RTO) comprises Gujranwala and Hafizabad districts, where 7500 people would be brought under the tax net. Sialkot Regional Taxation Office (RTO) comprises on Sialkot, Gujrat and Narowal districts where 7000 people would be brought under the tax net. The FBR also directed the authorities concerned to complete particulars of those people who had
precious moveable, immovable, residential or commercial properties in the big housing schemes and have expensive vehicles. If these people had no NTN numbers, then the special tax notices should be sent to them after assessing actual worth of all their assets. The FBR has given a deadline till June 30, 2016, as the FBR now established five special facilitation cells at RTO Sialkot and six such cells at RTO Gujranwala to facilitate the local taxpayers at local level.
Punjab Excise seizes documents of 24 vehicles he Punjab Excise and Taxation Department’s Motor Branch Lahore, during road checking, seized documents of 24 defaulter and unregistered vehicles. According to Motor Branch officials, special teams checked dozens of vehicles in different areas of the city and seized documents of 24 vehicles. The department formed different teams to check the vehicles which are not registered and are plying on the roads. Total eight teams of the Excise Motor Branch Lahore established many checkpoints in the city with the collaboration of traffic police Lahore and checked many vehicles.
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CCP directs private airlines to submit info of hike in fares till 8th Thursday, October 8, 2015
Business
ISLAMABAD: Taking action against the unfair hike in fares of private airlines, the Competition Commission of Pakistan (CCP) has directed the CEOs of such airlines to submit information regarding the increase in their fares till October 8. The CCP passed the special order under Section 36 of the Competition Act, 2010, while the order to seek information has been passed as part of an inquiry initiated under Section 37 of the Competition Act into the alleged unreasonable increase in air fares by private airlines taking advantage of the cancellation of flights due to the on-going deadlock between PIA management and Palpa, on domestic routes.
SBp adopts new strategy to curb flow of fake currency notes KARACHI
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he central bank has adopted a new strategy to curb the flow of fake currency notes in the country. Under the strategy, the State Bank of Pakistan (SBP) will ensure state-ofthe-art security features in banknotes, develop necessary capacity and infrastructure with banks to issue genuine and authenticate banknotes to the public; as well as create awareness amongst general public about the security features of banknotes. Following the strategy, SBP has issued new series of banknotes between 2005-2008 with significantly enhanced security features comparable with those of Euro,
Pound Sterling and US dollar. According to an SBP statement, recently the issue of counterfeit currency notes in circulation was discussed during a briefing given by a
team from SBP to the Senate’s Standing Committee on Finance. During the briefing the Chairman of the committee asked the SBP team to look into the complaints by public about
them having received such notes from some banks. The presence of counterfeit currencies is an undeniable fact not only in our country but across the globe and SBP being cognizant of the issue has been taking necessary measures to deal with this menace. While the primary responsibility to check the influx of counterfeit notes lies with the Law Enforcement Agencies (LEAs), it observed. In order to ensure that banks issue genuine and authenticated banknotes to the public, they are required to issue only sorted cash to the public from their cash counters and ATMs. The cash received in the branches cannot be issued unless sorted. Bulk of the sorting activity is, however, manual and vulnerable to human errors. To improve this capacity, SBP has advised banks to install banknotes authentication and sorting machines.
State Life earned Rs 810m profits in 2013
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ISLAMABAD
cUStoMS BULLetiN report www.customsbulletin.com
tate Life Insurance Corporation has posted a profit after tax of Rs810 million in 2013, showing 5.6 per cent growth over year 2012. The company released the financial report after a period of one and half year mainly due to nonfunctioning board of directors. The profit of State Life for 2013 was equal to 40.2% of the combined earnings of the six privatesector life insurance companies that operated in that year. However, State Life’s profit was still less
than the earnings of Jubilee Life Insurance (Rs941.4 million) and EFU Life Assurance (Rs929.1 million) recorded in the same year. While State Life lags behind other life insurance market players in terms of profitability, several key performance indicators show it is far ahead of its private-sector counterparts. For example, total assets of State Life at the end of 2013 amounted to Rs420.8 billion after recording an increase of 20.5% over the preceding year. In contrast, combined assets of the six privatesector life insurance players in 2013 clocked up at Rs102.4 billion, which is roughly one-fourth of the total assets of the government-owned entity.
Similarly, total gross premiums of State Life were Rs65.9 billion in 2013, which is 1.6 times of the combined total gross premiums of all privatesector life insurance players (Rs40.9 billion) in the same year. According to a reform committee constituted by the Securities and Exchange Commission of Pakistan (SECP) in 2014, State Life appeared to be “overstaffed” relative to its private-sector competitors. The committee also reported that State Life seemed to have “relatively high agency costs compared to its peers in other countries”. Moreover, it said there were concerns about “procedural irregularities at decentralised levels” at State Life.
Five million traders to be brought into the tax net: Dar
overnment is taking measures to bring five million traders under the tax net. This was stated by Federal Minister for Finance and Economic Affairs Ishaq Dar, while talking to a local news channel. He said that the government would conduct population census in 2016 and those having National Tax Number would be exempted from tax deduction. The minister stressed the need for ensuring political stability for economic stability in the country. To a question, he said that if Sindh government wishes to run the steel mill then it should be provided an opportunity to do it. To another question about fake currency in ATM machines, he said that he has asked acting governor State Bank how such notes were put in the machines.
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punjab govt, WB agree to enhance cooperation for youth training
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LAHORE
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he Punjab government and World Bank have agreed to promote cooperation for skill development in youth of the province and in education, health, agriculture, irrigation and other sectors. Chief Minister Shahbaz Sharif, while talking to new Country Director of World Bank in Pakistan
Patchamuthu Illangovan, said that the Punjab government is implementing a comprehensive programme for speedy economic development of the province and revolutionary reforms have been introduced for the uplift of health and other social sectors. He said that various programmes for the development of social sectors were successfully running in Punjab with the cooperation of World Bank. He said that youths were an asset of the nation and spe-
cial attention was being paid to imparting them various skills. He said that a programme was being implemented with the cooperation of Punjab Skill Development Company and DFID. He asked the World Bank to consider provision of assistance for quality skill development of 0.5 million youths annually. The chief minister said that targets had been fixed to increase the growth rate in the province for improving the living standard of the masses and no effort would be
spared to increase the growth rate to 8 percent in Punjab till 2018. He said the government was implementing the policy of balanced development of urban and rural areas and development projects costing billions of rupees were being completed expeditiously in urban and rural areas. Illangovan said that splendid measures had been taken in Punjab for the public welfare under dynamic leadership of Shahbaz Sharif. He said that World Bank would
promote interaction with the Punjab government for socio-economic development while cooperation would continue in skill development sector. He said the Board of World Bank had appreciated citizen feedback programme in Punjab which was playing an important role in the provision of better public service. He said that under the leadership of the chief minister, more work had been undertaken in Punjab as compared to other provinces.
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Thursday, October 8, 2015
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MULTAN
iMrAN ALi kHAN
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he Customs Anti-Smuggling Organization (ASO) Multan has seized smuggled goods worth Rs 12.46 million during September in various anti-smuggling activities. The ASO impounded 10 smuggled vehicles, including Toyota Corolla, Toyota Hilux Surf, Vitz and Raum and others worth Rs 10.30 million in its jurisdiction following the charges of non-duty paid. The Model Customs Collectorate Multan has reviewed the strategies against the smuggling over the time as it had transferred as many as 18 officials to improve the Moreover, smuggled/non-
duty paid miscellaneous goods, including Tyres, blankets, chocolates, Cosmetic goods and electronic items were also seized in the month of September. The total worth of the smuggled goods is almost Rs 2.160 million. Meanwhile, the Model of Customs Collectorate Multan is preparing the attendance report of Customs officials and staff from One Window Facilitation Desk at Multan Airport. According to details, Model of Customs Collectorate Multan deputed the Customs staff at Multan International Airport for the accomplishment of special tasks to facilitate the passengers. Customs formed special facilitation window desk to facilitate the passenger at Multan airport. Federal Board of Revenue directed the Model of Customs Collectorate Multan to submit
the attendance report of staff performing duties at Multan International Airport. The Model of Customs Collectorate Multan also received complaints that few staff members are remained absent from their duties. The attendance report will clear the situation that how many staff members who are deployed at Multan airport were absent from their duties. Superintendents and deputy superintendent will form the attendance report of their staff. Collector Sarfraz Ahmad Warraich MCC Multan may take action against those absent employees from their assigned duties according to directions of Federal Board of Revenue. It has been reported that few staff members were remained absent from the facilitation window desk during their duty timings and which have caused hardships for the passengers.
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Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDitoriAL
Need to set up close business ties with iran
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ran has been planning to launch oil and gas projects worth $185 billion by 2020 after successfully signing a nuclear deal with the world powers. Iran has followed a realistic approach during the long years of sanctions and has emerged as a real economic power not in the region but also on the world development index. The deal has opened doors for Tehran to rejoin the international community and the European countries; especially Germany is ready to establish business and trade relations with Iran. It is surprising to note that Iran has not only survived economic sanctions, but also doubled its gross domestic products during the years of suppression. According to an Iranian minister Reza Nematzadeh, instead of importing the Western technology, the Islamic Republic will focus on its oil, gas and car industries to increase its exports to the European countries. The Iran policy-makers are looking for a two-way trade with the developed economies and technological cooperation in design and engineering. Tehran will concentrate on technological advancement and will discourage blind import of goods and machinery from Europe. The Iranian industry is selfreliant and resilient and produces quality products of international standards. The years of sanctions could not make a big dent in its economy. On another note, the United Nations Security Council has already endorsed the deal to end economic sanctions on Iran in return for an agreement on its nuclear programme. The nuclear deal is in the interest of Iran as well as the world, though it requires a go ahead signal from the US congress. DiďŹƒcult times are ahead for Iran to satisfy the nuclear inspectors who are required to confirm that Tehran is complying with the international commitments. On economic front, apart from Germany, many other European companies are interested in reestablishing business in Iran. Germany is sending a delegation of its leading business figures to Tehran. Iran is our immediate neighbour and it is in the interest of Islamabad to establish strong economic relations with Tehran. Pak-Iran gas pipeline project, which was held in abeyance for years, should be revived as the major hurdle in its way in the form of economic sanctions has been removed. Iran has identified nearly 50 oil and gas projects worth $185 billion and it is a golden opportunity for Pakistani investors to take their share of business in Iran. The Pakistani government should also secure its side of border and take stern action against smugglers and anti-Iranian elements in Balochistan.
Exporters wait incentive package for textile sector A
LAHORE
Dr AftAB AfZAL
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ccording to the All PakistanTextileMills Association (APTMA), the country’s textile exports can be doubled in the next five years if the government creates a congenial environment for the industry. Tariq Saud, the newly elected president of the representative body, says that the textile industry is set to receive $1 billion annual investment provided the government comes up with special incentives and facilitations.He said that the spinning industry is designed to operate round the clock, but is currently operating at 66
percent of its installed capacity.At least 15 well-established spinning mills have been closed down after exhausting all their resources and others are on the verge of collapse as the cost production has increased manifold. The industry needs a package of incentives without which it will not be able to continue its operations. The exports are universally zero-rated, but are subjected to various taxes and levies in Pakistan that have reached five percent of the export value. Earlier on several occasions, Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar had hinted at announcing a relief package, butit is inordinately delayed. The textile sector needs cheap
electricity as the current power tariff is too high to do any good to lower the cost of production and enhance exports whereas the industrialists demand zero rating. According to the APTMA official, the revival of the textile sector will remain a distant dream without reducing power tariff to Rs9 per unit. A delay in the package is also impeding the creation of job opportunities in the textile industry. As a matter of fact, the government should come clear on its policies toward the textile industry which is one of the biggest employment sectors all over the world.The country is creating joblessness in textile sector at a fast rate due to low sale of yarn in local market, but India is adding new
jobs in textile sector due to usage of local yarn in the local market. The government earns billions of rupees foreign exchange through textile exports, but is not ready to announce incentives for the exporters. The exporters in India, China and Bangladesh are being givenrebate on textile exports, but various types of taxes paid by the exporters are not refunded in Pakistan. In India, the textile exporters are being given facilities beyond normal rebates on textile exports to 94 countries, including Pakistan. As a result, the Indian exporters are dumping their products in Pakistan and the Indian government is protecting its spinning industry by levying duties on the import of yarn.
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Walid Mushtaq wins FPCCI Achievement Award 2015 ISLAMABAD: CEO RIS Walid Mushtaq has won FPCCI 3rd Achievement Award 2015 for third consecutive year for his efficient working style in various traits. Sir Walid has been awarded gold medal for being ane ducationist with a vision to elevate the educational standards in Pakistan, an entrepreneur with a passion to develop innovative businesses with global impact, and most importantly a patriot dedicated to the betterment of our society through community mobilization and women empowerment. Walid Mushtaq, the CEO of Roots International Schools has been delivering his services to the country for over 20 years, taking the reins of an international standard organization at an early age, he has delivered success unparalleled in the education sector.Roots International Schools received this award from President Mamnoon Hussain, who was the chief guest at FPCCI Awards ceremony.
LCCI’s Sheikh Arshad invites Spanish investors pain and Pakistan have a lot to offer each other’s businessmen. Therefore, the two sides should work out new strategy to initiate joint ventures in the areas of common interest. “Being an emerging economy, Pakistan has lot of opportunities for foreign investors in the fields of energy, leather, textile, tourism, food products, infrastructure, agro-based products, livestock and various other sectors of economy.”These views were expressed by the LCCI President Sheikh Muhammad Arshad while addressing a 5-member Spanish delegation comprising Suprio Bose, Faiz Ahmed, Naveed Ahmed, Miquel Calpe and Jaume Mir here at the Lahore Chamber of Commerce & Industry. The LCCI Vice President Nasir Saeed also spoke on the occasion. The LCCI president said that trade and economic relations between the two countries have remained insignificant despite the fact that there is a lot of potential exists in the two countries to bring the two-way trade to the new height.
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World Bank mission meets kcci members he World Bank Group’s Mission on Trade and Competitiveness, led by operation officer Amjad Bashir, visited the Karachi Chamber of Commerce and Industry to seek the business community’s input on the overall investment climate of Sindh, particularly the industrial zones in Karachi. According to a statement issued by the KCCI, Bashir, while highlighting the purpose of the World Bank mission’s visit, said that the Sindh government has requested the lender to carry out a detailed study and accordingly, give guidelines on how to improve the overall industrial climate of the province. He said that the mission’s study has just begun and they will keep on visiting KCCI to get feedback on numerous issues. “We have decided to hold the first meeting with representatives of KCCI as we felt it necessary to initially take the bodies input on problems being faced by industrialists of the city,” he added.
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Thursday, October 8, 2015
Chambers
Six major sub-sectors of textile industry closed down: Aptma KARACHI
cUStoMS BULLetiN report www.customsbulletin.com
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he textile millers have revealed that the six major sub-sectors of textile industry have closed down due to energy crisis, high cost of doing business and inconsistency in government policies. All-Pakistan Textile Mills Association Chairman Tariq Saud, in a statement, said that around 30 per cent or $3,467 million worth of the textile industry’s production capacity is not operating which was having a direct negative impact on growth of exports. Due to underperformance of the textile industry, he said, Pakistan’s share in the global market also decreased from 2.2 per cent to 1.8pc during 2006-13, whereas market share of regional competitors increased by 75pc from 1.9pc to 3.3pc. He added that if situation remains the same, it is apprehended
that Pakistan would be out of the list of exporting countries of textile items. He said domestic market is being flooded with smuggled, subsidised and dumped imports of tex-
tile clothing. The customs duty on import of cotton yarn in Pakistan is 5pc whereas India has imposed 28pc duty which makes export of cotton
ICCI concerned over declining financing to SMEs
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ISLAMABAD
cUStoMS BULLetiN report www.customsbulletin.com
he Islamabad Chamber of Commerce and Industry shown great concerns over the declining financing by commercial banks to Small and Medium Enterprises (SMEs) in Pakistan as reduced lending to SMEs would further weaken the economy, cause decline in exports and tax revenue collection and push up unemployment in the country. Atif Ikram Sheikh, president, Islamabad Chamber of Commerce and Industry said that formal lending to SMEs come down to Rs.261.75 billion during the quarter ending on 31st March 2015 as compared to Rs.287.8 billion during the previous quarter ended on 31st December 2014 showing a decline of 9 percent, which should
be a cause of concern for the policymakers. He was commenting on the SBP quarterly report as of March 2015 which showed that SME financing has dwindled to 5.8 percent of the total financing as compared to 6.3 percent in the previous quarter. He said SMEs play a vital role in GDP growth, exports and employment generation, but declining financing to these business enterprises would further dampen the efforts aimed at economic revival of the country. He stressed upon the government to focus on enhancing the share of formal lending to SMEs in total lending that would help in expanding businesses, promoting exports and creating more jobs. Sheikh Pervez Ahmed Senior Vice President and Sheikh Abdul Waheed Vice President, Islam-
abad Chamber of Commerce and Industry said that access to finance was one of the major constraints for the growth of SMEs in Pakistan as more than 30 percent of SMEs normally approached SMEDA for financing issues. They said formal lending to SMEs in Pakistan was much less than the actual requirement as it was around 6 percent of the total lending whereas the share of formal lending to SMEs in our neighboring and regional countries was around 30 percent. They called upon the State Bank of Pakistan to introduce more credit guarantee schemes for SMEs in order to provide easy access to finance to these business entities because strict collateral requirements of banks were currently depriving SMEs of easy access to working capital, fixed investment and trade financing needs.
yarn to India unviable. As a result of this, he said a number of textile mills have closed down their operations on failing to compete with Indian textile industry.
Lcci reaffirms its support to AppMA resident of Lahore Chamber of Commerce and Industry Sheikh Muhammad Arshad has assured members of All Pakistan Paper Merchants Association (APPMA) that the LCCI will continue its efforts for the early resolution of their problems. He said this while speaking at an annual general meeting of the All Pakistan Paper Merchants Association (APPMA) at the LCCI, here on Tuesday. Sheikh Muhammad Arshad urged the newly elected office-bearers of the APPMA to forward their proposals to the Lahore Chamber so that the issues being faced by them could be taken up with the government circles concerned. Speaking on the occasion, newly elected APPMA officebearers urged the government to curtail import duty on the paper and paperboard and it should be included in the category of semi-finished material for printing and packaging.
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BIA Customs seizes heroine worth Rs 50m Thursday, October 8, 2015
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COLOMBO: Authorities at the Bandaranaike International Airport in Katunayake have seized a stock of heroin worth Rs.50 million as it was being smuggled into the country. The Customs Media Spokesperson noted that four persons have been arrested in connection to the incident. The fivekilogramme stash of Heroin had been packaged to resemble spices. Customs noted that the suspects carrying the drugs had reached Colombo at about 5:05 on Sunday morning aboard Sri LankanAirlines flight UL 126 from Chennai. The suspects are residents of Kirulapone and Grandpass. Among the suspects are a sixty-year-old woman and her 30-year-old daughter.Customs Media Spokesperson, Leslie Gamini noted that this was the largest haul of heroin seized this year.
US customs seizes cocaine Custom authorities tighten noose around in food at Newark airport iPhone 6s 'smugglers' NEW YORK
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n arriving passenger had an interesting assortment of food products seized by U. S. Customs and Border Protection officers at Newark Liberty International Airport over the weekend. On October 4, Mr. William Anthony Sanchez, a United States Citizen, arrived at Newark Liberty International Airport from Lima, Peru, and presented himself for inspection. During the examination of Sanchez’s luggage, CBP officers discovered a variety of food products, drinks and 88 Oxycodone pills within his checked bag. The passenger was subsequently escorted to a private search room where CBP officers conducted a physical
Bulgarian customs seizes 42kg heroin inside trucks’ wheel
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ustoms officers at Bulgaria’s Black Sea port of Burgas have seized 42.4 kilogrammes of heroin being smuggled in the wheels of a German-registered truck, the Bulgarian Customs Agency said on Monday. Aided by sniffer dog Chara and using X-ray equipment to scan the vehicle, customs officers removed the tyres of truck to discover the heroin attached to the inside of the wheels of the truck tractor. The vehicle carrying transit German number plates arrived by ferry from Batumi, the Republic of Georgia. It was empty, according to its cargo manifest, the Customs Agency said in a statement. The truck driver, a Turkish citizen, has been detained on smuggling charges. A criminal investigation has been launched.
search of his baggage. CBP officers probed the food items producing a white powder that tested positive for cocaine. In total, approximately 10 lbs. of cocaine was seized, along with 88 Oxycodone pills, with an estimated street value of $170,000. “CBP officers remain ever vigilant in protecting the United States from the distribution of these dangerous drugs, regardless of the con-
cealment methods employed by these would-be smugglers,” said Robert E. Perez, Director of CBP’s New York Field Operations. Mr. Sanchez was turned over to the Port Authority Police Department. He now faces state prosecution for narcotics smuggling charges and will be prosecuted by the New Jersey State District Attorney’s Office in Newark.
Ireland Customs seizes cannabis worth €700K in Co Kildare NAAS
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annabis with an estimated street value of €700,000 have been seized after gardaí raided a grow house in Co Kildare. The cannabis plants and herb was recovered in the Ard Scoil area
of Athy shortly after 11pm on Monday. What was described by gardaí as a “fully functioning grow house” was found at the premises and items used in the cultivation of cannabis were seized. One man (43) has been arrested and is being questioned at Kildare Garda Station under Section 4 of the Criminal Justice Act.
hose waiting for Apple's latest phones from overseas via the grey market route may not get them. And those planning to bring them from outside India without paying duty might need to do a rethink as they could be fined. Smugglers of the newest iPhones may even face arrest. They warned that passengers picked up after passing through the green channel will be liable to pay a fine, penalty and customs duty. According to the release, duty will be levied even on a single
phone since the value of the device exceeds the 'free allowance.' Passengers carrying iPhones in commercial quantity are liable to be arrested. Additional Commissioner of Customs, Mumbai Airport, Milind Lanjewar confirmed the developments to ET and said the rules already exist and are being reiterated to travelers. "For goods above Rs 45,000, technically passengers have to declare but most people are not aware of it. A duty of 36% is levied on the amount above this limit," he said. Even if a single iPhone brought from overseas exceeds the free allowance value, it would have to be declared and duty would have to be paid. The cheapest iP.
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fficers were screening the package when they decided to send it through an x-ray. Something seemed funny, and officers found odd clumps in the coffee grounds. Further testing revealed those clumps were in fact cocaine — 4.1 pounds of it. The shipment was being sent from Peru to an address in New Jersey. “We’re extremely proud of our CBP officers and their ability to detect and seize narcotics,” Miami International Airport port director Christopher Maston said in a state-
ment. "They remain dedicated to protecting the American people from dangerous drugs.” Smugglers often try all sorts of crazy ways to sneak cocaine through customs at the airport. In August, CBP reported it had found 80 pounds of cocaine and heroin hidden in shipments of flowers traveling from Colombia and Ecuador since January 2014. CBP claims it seizes more than 10,000 pounds of drugs daily throughout its operations in the U.S.
Nigeria customs collects N23.3b revenue in September
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he Apapa Area 1 Command of the Nigeria Customs Service, NCS, yesterday said it collected a total of N23.3 billion as revenue for the month of September, recording a short fall of N6.7 billion. One of the reasons adduced for the fall is the incessant gridlock in the Apapa axis of the state. The command has a monthly col-
lection target of N30 billion. In a statement, the Customs Area Comptroller, CAC, Charles Edike said; ”The decline in revenue might not be unconnected with the exclusion of some items from foreign exchange transactions by the Central Bank of Nigeria, CBN. Edike also said that the Apapa gridlock has taken its toll on the revenue profile of the command “The Apapa gridlock has actually affected the customs revenue because it has affected trade,” he said.
The report indicated that N12.6 billion went into the Federation Account in September comprising import duty, fees and Common External Tariffs. It said that under the Non-Federation Account, the command generated N10.7 billion from 5 per cent Value Added Tax (VAT); 7 per cent Port Levy, and 0.5 per cent ECOWAS Trade Liberalisation Scheme (ETLS). Other sources of revenues into the Non-Federation Account are one per cent Comprehensive Import Su-
pervision Scheme (CISS), National Automotive Council (NAC), levies on rice, iron, sugar and wheat grain. The report also indicated that N11 million was collected from the Negotiable Duty Credit Certificate, NDCC. The NDCC is a document accepted for duty payment from importers who bring in materials for production purposes. It will be recalled that the command generated N74.1billion in first quarter of 2015.
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Ports of Auckland to open new freight hub next to rival port AUCKLAND: Ports of Auckland is opening an intermodal freight hub nearby the Port of Tauranga in a bid to attract exporters and gain improved access to overseas markets. Tony Gibson, CEO of Ports of Auckland, said that the new inland port would provide Bay of Plenty exporters with an “easy-to-access choice of ports” to use, stating “competition is a good thing”. Transport logistics experts Toll Group will operate the Bay of Plenty freight hub in Mount Maunganui on behalf of the port authority after building the remaining infrastructure required at the site with landowner Triton Pacific and the port. While 1.4 ha will be developed initially, there is an option to further develop capacity. The land is adjacent to a rail siding and will be developed to include a rail connection, container handling facilities and other value added logistics services.
Port of Rotterdam Authority considers developing new sea port in Indonesia he Port of Rotterdam Authority has partnered with the Indonesian Port Corporation Pelindo I to examine the possibility of developing a new deep sea port called Kuala Tanjung. Located in Medan, North Sumatra in the North West of Indonesia, the port sits by the Strait of Malacca approximately 300 km from Penang in Malaysia and less than 800 km from Singapore. The port authority will now carry out a feasibility study for the new port together with Pelindo I. As part of this process, a project organisation will be created, featuring both local and Rotterdam-based port authority employees. Depending on the study’s outcome, the port authority will decide whether or not to enter into a joint venture with Pelindo I. Allard Castelein, CEO of Rotterdam’s port authority: “We want to share our knowledge in the construction, development and management of Kuala Tanjung.” The development of a deep sea port in Indonesia forms part of the Dutch port’s foreign policy which has a focus on creating opportunities for Dutch companies abroad.
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he Committee of “Security Agencies in Ports of Entry into Qatar” has signed with the Chinese company “Nyuktk” an agreement to develop security systems in both sea and land ports in Qatar. The agreement aims to develop security systems in the New Hamad Port project, Abu Samra border and the port of Ruwais. The ports would get modern security systems with radiation detection thus increasing the efficiency of border controls. Internal Security Force has earlier supplied to the General Authority of Customs through a joint committee two advanced X-ray machines to screen containers and detect banned items.
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kalmar reveals contract to upgrade eight StS cranes at the port of Valencia FINNISH
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anufacturer Kalmar has announced that it will upgrade eight ship-toshore (STS) cranes at MSC Terminal VLC at the Port of Valencia, Spain, as the port gears up to accommodate larger vessels in anticipation of growth in container traffic. The company, part of Cargotec, will extend the boom on all the cranes by 6 m and heighten six of the cranes by 10 m, thus increasing the terminal’s capacity to serve ships carrying up to 19,000 teu, a 16% increase from the current maximum vessel size of 16,000 teu. The contract for the upgrade of Paceco cranes at the terminal, which is operated by the shipping line and port operator Terminal Investment
Limited SA (TIL), has been signed into Cargotec’s 2015 third quarter intake, with all the cranes scheduled to be operational by mid-2017. José Ignacio Fernández, head of Crane Upgrades for Kalmar in South Europe, Middle-East and Asia, said: “Upgrading an existing crane’s han-
dling capabilities provides a cost-effective solution for ports and terminals looking to quickly gear up for the continued increases in vessel size.” The Port of Valencia ranked 32nd in the 2015 issue of CM’s World Top Container Ports, having handled 4.4m teu in 2014.
Inland Port proposal can bring up to 2,000 jobs to Jamesville
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ne aspect of the CNY Rising proposal could potentially create up to 2,000 jobs in Central New York. The plan would be to build an inland port off of Interstate
481 near Jamesville. The intermodal port is located on 225 acres of brownfields. Officials say it would allow agricultural and manufacturing producers to transport their goods internationally at a reduced cost. "We have a site; we have a railroad that is an eager and willing
partner. We have a port operator and we have a huge amount of private sector interest in that site," said Rob Simpson, CenterState CEO President Simpson said it is located within three miles of the Syracuse's south side, where people who need jobs the most are located.
Thursday, October 8, 2015
Karnataka government urges Centre to relax CRZ rules for ports' development
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he Karnataka Government on Monday requested the Centre to relax the coastal regulatory zone (CRZ) rules to enable it to develop small ports in the State. Karnataka Ports Minister Baburao Chinchansur, who attended the Sagarmala port development apex committee meeting chaired by Union Shipping Minister Nitin Gadkari, said that the existing CRZ regulations were a major hurdle to the development of ports in the state. He also requested the Centre to sanction Rs 200 crore for developing ports as well strengthen the security system around ports. He said under Asian Development Bank (ADB) project, Rs 911 crore had been sanctioned by the State government to address the problems of sea erosion in coastal areas and first phase work has been started. The minister said the State is also working on to rope in private entities for development of minor ports under the Karnataka State Port Development Policy 2014. Honnavar, Manki, Mavinakurve, Basavaraj Durga Island, Belekeri and Tadadi ports in Uttara Kannada district will be developed under public private partnership (PPP) model, he said.
5 major port operators collaborate to raise environmental awareness
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ive of the world’s largest port operators have launched in conjunction with the Port of Rotterdam Authority (PRA) the first ever joint industry environmental initiative of this magnitude. The initiative, called ‘Go Green’, is focused on promoting environmental awareness and make a sustainable
difference in the communities in which the companies operate. The campaign, which will take place between 14 and 21 September, has been launched by the Dubaibased terminal operator DP World, the Dutch APM Terminals, the Singapore-listed PSA International, the Chinese Shanghai International Port Group (SIPG) and the Hong Kongbased Hutchison Port Holdings Limited (HPH). The ‘Go Green’ joint initiative will
focus in particular on the themes of re-use and recycling, climate change and the communities in which the companies operate. “Safeguarding the environment is the responsibility of all of us,” said DP World’s chairman Sultan Ahmed Bin Sulayem, “by joining forces across the industry this initiative will make greater impact worldwide.” HPH Group’s managing director Eric Ip said: “By putting our efforts together with other major port and
maritime industry players for this worthy cause, we hope to lead by example and, in the process, do our bit to create a cleaner, greener world for everyone.” As part of the campaign to promote environmental awareness, the port operators’ local business units will organise a range of activities, among which creating and upgrading local green spaces, launching educational programmes and adopting waste recycling measures.
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PRA’s revenue collection in September up by 14.3% to Rs 1 billion LAHORE: The Punjab Revenue Authority (PRA) has said that September 2015 revenue collection has increased to Rs 1000 million from Rs 894.301 million during the corresponding period of last year depicting 14.30% gains. The Withholding Agent sector saw a boom as it increased to 129.38% during July 2015 in comparison to July 2014 and the month of September 2015 also noticed an increase of 153.76% as compared to August 2014. The spokesman said the collection from security agencies also been remarkable as it increased to 20.82% and 43.46% for July and August 2015, respectively. The Punjab Revenue Authority aims to excel as an organisation by performing brilliantly through achieving the set goals of revenue collection and even a step ahead, the spokesman concluded.
CUSTOMS BULLETIN Thursday, October 8, 2015
Sialkot customs to clear all pending rebates: collector Ahmad reza Sialkot Customs also decides to take disciplinary action against officials who fail to mark their attendance in office hides, leather shoes and artificial leather. The government has offered the rebate scheme to enhance export volume and earn valuable foreign exchange. Meanwhile, the Model Customs Collectorate Sialkot has decided to take disciplinary action against the officials who fail to mark their attendance in the office. A departmental circular warned all officials that department would consider it as violation of the discipline, if they did not register their attendance until 9:30am. The circular was issued by Asistant Collecter Syed Karim Adil. Sources told Customs Today that it was being noticed from the last week that officials were not marking their attendance; therefore, a superintendent has been deputed who will check attendance register after 9:30 am and such officials and staff who will not register their attendance will be treated as absent. The Federal Board of Revenue (FBR) also issued strict guidelines against those employees who remain absent from their duties and their casual leaves were also considered cancel in order to maintain full attendance at the Customs House.
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odel Customs Collectorate (MCC) Sialkot Collector Ahmad Reza Khan has said that Rs 600 million in wake of rebates has been issued to traders in September 2015. The amount of rebate is 50 percent more than corresponding period of last year. Khan said that collectorate was striving to ensure the early clearance of all the pending rebate and refund claims of Sialkot exporters. He also said the collectorate will leave no stone unturned to facilitate the traders. Besides, he has assured the Sialkot-based exporters of resolving their customs-related issues on priority basis. The collectorate has issued rebate cheques to importers those have imported raw material for making value added products for exports. The collectorate gave rebate to textile sector on garments and leather for exportable products including finished leather garments,
fBr extends trial period of fatima fertiliser for 90 days MULTAN
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ollectorate of Customs Adjudication taken the extension from Federal Board of Revenue in tax evasion case of Rs 16 .071 million against Fatima Fertilizer (Pvt) Limited. According to details, Collector Customs Adjudication is preceding the tax evasion case of Rs 16.071 million against Fatima Fertilizer Limited (Pvt). During the Post-Clearance Audit (PCA) of the cleared consignments Customs detected tax evasion of Rs 16.071 million against Fatima Fertilizer Multan, which
the company was supposed to pay as taxes on import of shipments. Fatima Fertilizer imported 22 consignments, including electricity multicore cables, steel pipes, steel structure ladder scaffolding, tube scaffolding, lubricants and welding wires, and evaded duty and taxes by claiming disallowed benefits under serial numbers 20 and 21 of the SRO 575 (I)/2006. According to law, goods imported by Fatima Fertilizer do not fall in the category of machinery, equipment and accessories required for the production of manufacturing or production of any goods. The Post-Clearance Audit found that exemption of customs duty in excess of 5
per cent and whole of sales tax could be enjoyed on import of machinery, equipment, spare parts and accessories under Sections 84 and 85 of the Pakistan Customs tariff required for the initial installation, balancing, modernization, replacement or expansion of oil refining downstream products, which are not notified by the Federal Board of Revenue. The imported goods were lying in the list of locally manufactured items notified under SRO 575(I). Therefore, statutory rate of customs duty, sales tax and withholding tax were imposed on the imported consignments of Fatima Fertilizer Limited. Customs found tax evasion of Rs 16.71 million involving customs duty to the
tune of Rs 7.58 million, sales tax Rs 8.15 million and income tax Rs 0.32 million during the post clearance audit. Customs Adjudication taken the extension after the expiry of legal period for the conclusion of tax evasion case against the Fatima Fertilizer Limited (Pvt). The Federal Board of Revenue approved the plea of Collector Customs Adjudication for the extension of further 90 days in the tax evasion case for its final conclusion. The hearing in the Fatima Fertilizer Limited Pvt. tax evasion case was adjourned for the indefinite period on 29th September. After the extension of legal time period hearing date will be fixed very soon.
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