Daily on www.customsbulletin.com
Find us on
pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS
Daily
Vol 1 Issue No. 177
Karachi, Wed September 9, 2015
ISLAMABAD
M FAIZAN
www.customsbulletin.com
T
he Federal Board of Revenue (FBR) Inland Revenue (IR) Investigation and Intelligence has collected the details of assets declared by the members of the Senate and the National Assembly before the Chief Election Commission at the time of elections. Sources said that IR-Intelli-
Price Rs. 14.00
gence Director Dr Bashirullah, following the directions of Director General Haroon Tareen, has obtained the record of the last Sive years to launch a crackdown against tax evaders of both the houses who owe millions of rupees tax to the national exchequer. They added that the FBR will cross-match the record received by CEC with the record of income tax returns and wealth statements received by the FBR to Sind the mis-declaration if any. The tax cheaters will be dealt sternly under Section 192 of the Income Tax Ordinance 2001.
Islamabad Customs collects Rs 189m customs duty in eight months
Sargodha ASO impounds Toyoata Hiace Van worth Rs 1.8m
CPEC to help boost auto, transportation industry in Pakistan
NAB nabs seven Customs officials for Rs180m fraud
Mobicash services to be available on NADRA e-Sahulat
The Model Customs Collectorate Islamabad has collected Rs 189.61m | See pAge 02 |
The Customs ASO Sargodha has impounded a non-duty paidToyota Hiace | See pAge 03 |
The increasing roads networks, improved infrastructure and completion | See pAge 04 |
The NAB Punjab has arrested Seven high-ranking Customs oďŹƒcials | See pAge 03 |
Mobicash and NTL signed A MOU to launch Branchless Banking services | See pAge 09 |
2
www.customsbulletin.com
PCA to issue new office ID cards to officials Wednesday, September 9, 2015
National
ISLAMABAD: The Customs Directorate General of Post Clearance Audit (PCA) Islamabad is going to issue new office identity card to the officials. According to the details, Deputy Director PCA Islamabad, Lubna Shamshad has issued an office order in which she has directed the officers to submit their credentials in this regard. The officers concerned have been asked to provide the details, including names with designations, emergency contact numbers and computerized identity card numbers along with two photographs for the issuance of the new identity card.
Islamabad customs collects rs 189m customs duty in eight months
rs 471m refund claims still pending with rto Multan MULTAN
ZAFAr MALIk
www.customsbulletin.com
ISLAMABAD
ShAhID MINhAS
T
he Model Customs Collectorate Islamabad has collected Rs 189.61 million in the term of customs duty from January to August 2015. According to the details, the collectorate had collected Rs 227.35 million in the column of customs duty during the same corresponding period of the year 2014. The Sigure shows department observed a decline of 16 percent during the 2015. On the other hand, the MCC Islamabd had achieved its target in the term of customs duty a month prior to the completion of the last Siscal year 2014-15 as it had collected Rs 4.449 billion against Rs 4.426 billion target. It had collected Rs 2.883 billion as customs duty during the Siscal year 203-14. Meanwhile, The Pakistan Customs ofSicials have expedited efforts to arrest an absconding accused in gold and currency smuggling valued at Rs 25 billion. Source informed that Sajid Moti Wala who has been nominated in the case by the customs authorities has Sled abroad as his name was not included in Exit Control List (ECL) in order to avoid the prosecution. They said that accomplices of the accused in the said case could also not be arrested so far, adding that raids were being conducted to put them behind
he refund claims amounting to Rs 471 million are still pending in the Regional Tax Office Multan for the fiscal year 2014-15, sources said. According to details, Federal Board of Revenue Regional Tax Office Multan still not cleared refunds claim of the taxpayers so far after the completion of fiscal year 2014-15. The Regional Tax Office Multan had issued the refund amount of almost Rs 825 million during the fiscal year 2013-14. Refund claims of the industrial and individual were released early in the fiscal year 2013-14. According to Regional Tax Office Multan, the refund claims will be released early as there is no pending claim from the Regional Tax Office and it is an automated tax system and it will be released soon. Commissioner Regional Tax Office Multan Hafiz Jamil Owaisi has also pending refund claims of Rs 40,000 in his office due to digital system and no one can influence on the tax system due to its automated system. The textile exporters and cotton ginners have demanded the Federal Board of Revenue release their tax refunds, but several refund claims are still pending with the Regional Tax Office Multan.
T
www.customsbulletin.com
the bars. The sources said that customs has also approached Federal In-
vestigation Agency (FIA) which also investigating cases against the ab-
sconder accused, to bring the culprit back to Pakistan.
Iranian diesel seized after auction: SHC summons customs officials KARACHI
MuhAMMAD YouSAF www.customsbulletin.com
T
he Sindh High Court (SHC) has summoned the ofSicials concerned of the Pakistan Customs to explain why 60,000 liters of smuggled Iranian diesel was seized after it was auctioned. Justice Sajjad Ali Shah, who
headed a division bench, was hearing the petition Siled by Abdullah against auction of the Iranian diesel. The petitioner submitted that the customs ofSicers had seized 138,000 liters of smuggled Iranian diesel in February 2015. Subsequently it was auctioned and Kepler Petroleum (Private) Limited purchased it for Rs 8.197 million. He said that later the Sirm sold 120,000 liters to him out which 60, 000 liters were transferred into an oil tanker with registration No.TLE-229 for its trans-
portation to Sindh province. He added that Pakistan Customs’ Anti-Smuggling Organisation (ASO) intercepted the oil tanker carrying 60,000 liters diesel at Mirpur Khas Road and seized it illegally even after the driver tried to convince the ofSicials that the diesel was purchased legally at an auction. The petitioner said the customs ofSicer had issued the driver a notice dated May 2015, telling him about disposal of the diesel through an auction. He stated that he had run
pillar to post to recover the seized diesel but the respondent customs authorities were adamant to sell it. He prayed to the court to restrain the customs ofSicials from auctioning the seized diesel and issue directives for them to release it. Meanwhile, The Sindh High Court (SHC) has sought comments from the Karachi Port Trust (KPT) on an application of a coal importer, seeking permission to dump 20,000 metric tons coal at KPT’s coal terminal. Applicant Awan Trading Company (Pri-
vate) Limited moved the court, submitting that a vessel carrying over 50,000 metric tons the coal is due to arrive at the Karachi Port on Sunday. A vessel carrying over 40, 000 metric ton coal cannot be berthed at Port Qasim, therefore, if the vessel is once allowed to lighten its weight approximately 20,000 metric tons, it can berth at Port Qasim. Therefore, the counsel for the applicant requested the court to allow the applicant to dump 20, 000 metric tons of the coal at KPT’s coal handling facility.
3
www.customsbulletin.com
Gerry’s Dnata terminal out of grounding space KARACHI: Importers are facing difficulties in clearance of their consignments due to low grounding space at Gerry’s Dnata terminal. According to sources, more than 60 percent of the handling of consignments at the Air Freight Unit (AFU) is being done by the private company’s terminal. But due to low grounding space, it takes six or seven days to clear a consignment instead of a single day. Due to this, the importers have to pay extra for go-down’s rent. The sources said that there was a dare need to arrange for more grounding space at the terminal; otherwise a large number of import items, including medicines, could be damages.
Customs says challan against model Ayyan submitted, rubbuishes conflicting reports ISLAMABAD
NAeeM uLLAh tArIQ www.customsbulletin.com
odel Customs Collectorate Islamabad has denied the media reports published in the various sections of press and media which claimed that customs has not submitted the challan in model Ayyan Ali case so far. The customs officials have termed the report as baseless, besides clearing the customs stance saying that “Factual position is that the accused was arrested on March 14, 2015 following the recovery of $506,800 and on April 24, 2015 the prosecution had submitted interim challan against the accused Ayyan before the honourable trial court i.e.
M
chairman ghulam Murtaza hears nine cases in Lahore bench on Monday LAHORE
MuhAMMAD NAwAZ www.customsbulletin.com
ustoms Appellate Tribunal Chairman Ghulam Murtaza Bhatti heard nine cases of Lahore bench on Monday along with another member of the Lahore region. A special bench comprising Chairman Ghulam Murtza and Member Technical khawja Omer Mehdi heard cases. The special bench heard nine cases, including director Custom Investigation and Intelligence Faisalabad versus Haji Nabi Buxh, Ohad Motors versus Customs Sambrial, Fazal Cloths versus Customs Multan, Wazir Zulafqat versus Customs Lahore, Zoanal Textile versus Customs Lahore, Madina International versus Customs Lahore, Hikmatulla versus Customs Lahore, Director Investigation and Intelligence versus Rising Sun and Waseem Amjad versus Customs Faisalabad.
C
Wednesday September 9, 2015
National
Sargodha ASo impounds toyoata hiace Van worth rs 1.8m FAISALABAD
IMrAN ALI
www.customsbulletin.com
T
he Customs Anti-Smuggling Organization (ASO) Sargodha has impounded a non-duty paid Toyota Hiace Van worth Rs 1.8 million involving duty/taxes amounting to Rs 655,680. ASO Sargodha which falls in the jurisdiction of Model Customs Collectorate Faisalabad, acting upon credible information received through Assistant Collector Muhammad Asim Awan, conducted raid against non-duty paid vehicle in the region. The ASO team intercepted a vehicle near Khayyam Chowk Sargodha and asked the driver namely Zafar Iqbal to produce the documents showing the legal import and lawful possession of the said vehicle. But he could not produce any documents relating to its legal import or lawful possession. Therefore, ASO Sargodha impounded the vehicle under import and export Control Act, 1950 Punishable under Section 156 (1) 89 of Customs Act, 1990. ASO team comprising Inspector Bashir Ahmed, Ansir Saleemi, Sepoy Rana Muhammad Ashraf, Muhammad Ameen Shafqat and others participated in the action. Meanwhile, The Customs AntiSmuggling Organization (ASO) Faisalabad has impounded a nonduty paid Isuzu Truck worth Rs 2
million involving duty/taxes amounting to Rs 870,000. In pursuance of information received through Model Customs Collectorate Faisalabad Collector Tauseef Ahmed Qureshi, the ASO team conducted a raid near Satiana Road Faisalabad to impound the non-duty paid vehicle. The team intercepted a truck bearing Registration No. JU-8083 and asked the driver to show the documents regarding the payment of duty/taxes on the import of vehicle but he had failed to do so. Therefore, Isuzu Truck has been seized under the relevant provision of the import and export (Control) Act, 1950 pun-
ishable under section 156 (1) 90 of the Customs Act, 1969. However, the accused persons including driver namely Dilshad Ali and helper namely Mehboob Ali has also been arrested
Mcc Faisalabad, acting upon credible information received through Assistant collector Muhammad Asim Awan, conducted raid against nonduty paid vehicle in the region.
Sialkot RTO collets Rs 700m in August
T
he Federal Board of Revenue (FBR) Regional Tax OfSice (RTO) Sialkot has achieved its Rs 700 million tax recovery target set for the August 2015. According to details, RTO Sialkot has collected the tax under the head of income tax ,sales tax and federal excise duty (FED) during the said period. The regional ofSice was trying hard to achieve its revenue target
for the running Siscal year 2015-16, ofSicial said, adding that latest techniques and strategies were being adopted to expand the tax base in the region. They added that RTO has formulated special recovery teams, which make it possible for the department to meet the target. Meanwhile, The Model Customs Collectorate Sialkot has collected Rs 19.82 in terms of customs duty in eight months starting from January
2015 and ending on August 2015. As per details, the MCC Sialkot has surpassed the revenue collection target under the head of customs duty made by it during the corresponding period of last year to the tune of Rs 15.96 million. OfSicial sources said that the Sialkot region had collected Rs 7.63 million as customs duty during July 2015 which is Rs 1.31 million more than the Rs 6.32 million collection of the same period of last year, 2014.
for further interrogation. ASO team comprising Superintendent Zahid Bukhari, Inspector Muhammad Naeem, HaSiz Nisar Ahmad and Sepoy Asrar Ahmad conducted raid on the instructions of collector of Faisalabad Customs. Meanwhile, The Customs Investigation and Intelligence has seized a consignment of 16,270 kilogram of fabric worth Rs 4.71 million following the charges of short payment of duty/taxes and also impounded a truck being used for the transportation of the items after Sinding it non-duty paid. Sources informed that Additional Director Muhammad Ismail received information regarding the clearance.
NAB nabs seven customs officials for rs180m fraud he National Accountability Bureau (NAB) Punjab has arrested Seven high-ranking Customs officials for allegedly causing Rs180 million losses to the national exchequer and misuse of their authority. The arrested officials include Additional Collector Amir Raheel, former assistant collectors Muhammad Tufail, Khalid Mahmood, Muhammad Afzal Dogar, Muhammad Akram, Sheikh Nadeem Latif and Syed Abbas.
T
4
www.customsbulletin.com
Dubai Islamic Bank announces to list quarter of shares in KSE Wednesday, September 9, 2015
Business
ISLAMABAD: The country witnessed 6.19 per cent decline in mobile phone imports in July 2015 as compared to the same period of previous year. According to data released by Pakistan Bureau of Statistics (PBS), the mobile phone imports during first month of current fiscal year 2015-16 were recorded at $45.37 million as against the imports of $48.362 million during July 2014. On month-on-month basis, the imports plunged by 34.06 percent from $68.81 million in June 2015 to $45.37 million in July 2015. Similarly, the overall telecom imports during the period under review also decreased by 37.58 percent.
cpec to help boost auto, transportation industry in pakistan: Ahsan KARACHI
cuStoMS BuLLetIN report www.customsbulletin.com
T
he increasing roads networks, improved infrastructure and completion of China Pakistan Economic Corridor will help boost auto and transportation industry. This was stated by Federal Minister of Planning, Development & National Reforms Ahsan Iqbal, while addressing Indus Motor Company (IMC) 22nd QCC Convention,
Milk price hiked by rs10 to rs90 in karachi
themed ‘Kaizen – Way of life’. Inaugurating the convention,
wheat policy soon: 7th pakistan Flour Milling conference, exhibition starts
KARACHI
cuStoMS BuLLetIN report www.customsbulletin.com
he milk sellers have hiked the milk price by Rs10 per litre to Rs90 to Rs95 against the official price of Rs70 per kg in the provincial capital. The hike in prices was observed after the government crackdown on milk sellers. The wholesalers claimed that dairy farmers had increased the rate of milk from Rs73 to Rs84 per litre and it was for this reason that the wholesalers and retailers, too, had to revise the prices.
T
Ahsan Iqbal appreciated the efforts of IMC in contributing to the devel-
opment of the local industry in Pakistan. The minister said that government is specifically focusing on the growth of private sector and auto manufacturers are most critical part of it. All stakeholders must sit together to come up with a road map for auto industry to join the league of top automobile producers in the world, he added. Addressing on the occasion, IMC CEO Parvez Ghias said that the company shares its experiences within and outside the industry and aims to promote a culture where merit, creativity and search for better ways are constantly strived for.
LAHORE
cuStoMS BuLLetIN report www.customsbulletin.com
P
rovincial Minister for Food Bilal Yaseen, addressing inaugural Session of 7th Pakistan Flour Milling Conference and Exhibition, has said that all stakeholders will be consulted before announcement of wheat release policy. The minister said that the government had been lucky enough
that with cooperation from milling sector in general Slour prices were decreased and brought within reach of consumers. “We are constantly in touch with both groups of millers for framing better policies.” During the session the Flour Millers Forum also announced the best reporters award of the year. Earlier, Organising Committee Chairman Dr Bilal SuSi, in his welcome address, said that his mission was to create awareness amongst millers to go for better quality with better machines. He demanded the government to reduce wheat support price imme-
diately according to recession in international market. The main issue confronting Slour industry is all time high price in Pakistan which failed the export policy which is now called fake rebate or support policy. Addressing on the occasion, Punjab Food Secretary Dr Pervaiz Khan said that so far no wheat issue price was declared and common people interest will be taken care of in this respect. A full Slour fortiSication session was also held where Director Micronutrient Initiative Dr Tauseef Janjua gave a detailed programme of spreading FortiSication throughout the country.
uS again backs Diamer-Bhasha Dam project ISLAMABAD
cuStoMS BuLLetIN report www.customsbulletin.com
he United States has renewed support for the Diamer Bhasha Dam project and highlighted commitment for investment in renewable energy projects. Larry Sampler, the Acting Assistant to USAID Administrator of Afghanistan and Pakistan, said this during a meeting with Federal Finance Minister Ishaq Dar. Larry said that the US would continue to support Pakistan government’s initiative for improving governance in the power sector. He said US would support small hydro and solar power projects and added that the USAID planned to hold a Business Opportunities Conference to highlight the potential and opportunities in Pakistan in the renewable energy sector. He Larry Sampler said that the US would support small hydro and solar power projects and added that the USAID planned to hold a Business Opportunities Conference to highlight the potential and opportunities in Pakistan in the renewable energy sector. He assured the Finance Minister of his country’s continued assistance in improving the financial markets in Pakistan.
T
Govt releases Rs 131.44 billion for development projects ISLAMABAD
cuStoMS BuLLetIN report www.customsbulletin.com
T
he federal government has issued Rs 131.448 billion for different developmental projects against the total allocation of Rs 700 billion. The government released the
amount under Public Sector Development Programme (PSDP) 201516. According to latest data released by the Planning Commission of Pakistan Rs 2.979 billion has released for different projects of Pakistan Atomic Energy Commission as against the total allocation of Rs 30.408 billion for Siscal year 2015-16. The government has released Rs 4.045 billion for Higher Education Commission as compared to the total allocation of Rs 20.500 billion for
the year 2015-16. Under PSDP 2015-16, an amount of Rs 6.669 billion has released for uplift and improvement of the services of Railways Division as government had earmarked Rs 41 billion for the development of Pakistan Railways. Meanwhile, a sum of Rs 1.773 billion has released for different projects of National Health Services, Regulations and Coordination Division as against Rs 20.701 billion earmarked for current Siscal year.
Under development programme, Rs 11.593 billion has released for infrastructure development projects under National highway Authority (NHA) as compared to the total allocation of Rs. 159 billion for FY 2015-16. The government has released Rs. 284.212 million for National Food Security and Research Division, Rs 205 million for Science and Technical research Division and Rs 40 million for Water and Power Division
(water sector) projects respectively. Under PSDP, 2015-16 an amount of Rs 2.200 billion has released for Azad Jammu and Kashmir block and other projects as against the total allocation of Rs 13.300 billion for current Siscal year. Rs 3.725 billion has released for the development of Federally Administrative Tribal Areas (FATA) and SAFRON where as government has allocated Rs 19.700 billion for Siscal year 2015-16 for uplift of these areas.
www.customsbulletin.com
ADVERTISEMENT
5
6
www.customsbulletin.com
MULTAN IMrAN ALI www.customsbulletin.com
c
ustoms Appellate Tribunal will hear tax evasion case of Rs 772 million against Q-mobile. According to details, the Model of Customs Collectorate Multan has filed a review appeal against Order-In-Original of Collector Customs Adjudication-I Dr Farid Iqbal Qureshi. The Model of Customs Collectorate Multan has detected the Q-Mobile case in August 2014.The Adjudication-I had concluded the case after rejecting the view point of MCC-Multan in the Sinal verdict in which the MCC Multan established tax evasion case against M/s Q-Mobile and its authorized dealers i.e. M/s Digicom and M/s New Allied Electronics. The Model of Customs Collectorate Multan seized more than 900 cell
phones of the Q-Mobiles during an action against them. During further investigation, a tax evasion case was surfaced in the month of August-2014 in which the MCC-Multan in its contravention report stated that the cellular company i.e. M/s Q-Mobile was involved in tax evasion of Rs 772 million in import of around 2.4 million cellular phones of different characteristics. The MCC-Multan had established a case of massive tax evasion against M/s Q-Mobile and its authorised dealers, in which it stated that the company imported around 2.4 million smart phones and tried to evade duty/taxes worth Rs 772 million. MCC-Multan were of the view that the cellular company i.e. Q-Mobile was paying sales tax @ Rs 250 against the import of each smart phone while the other cellular companies including Samsung Blackberry and Nokia had been paid
sales tax @Rs 500 on import of such smart phones which were identical to the mobile phones imported by Q mobile. Collector Adjudication given the final verdict in the favour of Q-mobile Company in tax evasion of Rs.772 million on the grounds that case formed by the MCC Multan was not cleared from the jurisdiction of MCC Multan. The Model of Customs Collectorate Multan has filed the review appeal petition against the Q-Mobile tax evasion case after consultation with the Federal Board of Revenue dealers .The Model of Customs Collectorate has its point of view that Q-Mobile and its authorized dealers have never denied from the allegations Surfaced by MCC Multan and they have contested the case that their import consignment was cleared from jurisdiction of Karachi Preventive and it does not exist in the jurisdiction of MCC Multan.
www.customsbulletin.com
Wednesday, September 9, 2015
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
Missed economic factors
D
Democracy has been restored in Pakistan, but fundamental factors are missing and people are not lucky enough to reap the benefits of the people’s government. The countries, which were far behind Pakistan in trade and industry, are emerging as successful economies. The successive governments in Pakistan have miserably failed to restore peace, overcome acute electricity shortage and provide conducive environment for economic growth. The economy of Pakistan is not on the right track and the government is unable to find a way out to deal with even basic issues such as development of infrastructure and the rule of law. Pakistan has a perfect economic engine in the form of strong industrial base and human resources, but it is not being allowed to work properly. According to the Economic Freedom of the World Report, which has reviewed fundamental factors across 152 countries in 2014, Pakistan’s performance is the worst in the region. Taking a cue from the International Monetary Fund, World Bank, and World Economic Forum, the report covers the size of government, legal system and property rights and international trade. The project is a whistleblower for the developing countries to understand the key elements adversely affecting their economic performance. As a matter of fact, the thrust of the Pakistani government is on politics rather than economy. The countries in the region have successfully shifted their focus from politics to economy such as India and Bangladesh, but in Pakistan, the federal and the provincial governments are still lingering on the hackneyed path. The country is facing severe balance of payment problems and extreme mismanagement in the financial discipline. The non-development sectors remained priority areas of the government; as a result, the government is filling the gap between income and expenditures by taking more and more loans from international donor agencies. The government has to set priorities before embarking on a new venture. First of all, it has to improve law and order by depoliticizing civil forces and improve energy supply by building crucial dams by setting aside political constraints. It will also have to reform tax system by studying different systems in different countries. Economy of several countries, where the ratio of tax is minimal, is growing fast which means imposition of bulk of taxes does not guarantee economic growth. There is a need to encourage cross border trade within the countries in the region by giving relief in customs tariffs and duties. Small steps could have big impact on the economy and the government should take it as a challenge and not as a burden.
case of provincial economy A
LAHORE
Dr AFtAB AFZAL
www.customstoday.com
fter provincial autonomy has been entrusted on the federating units, it is the main responsibility of the provinces to devise trade and investment policies in their respective jurisdictions. However, treading on the beaten path, the political leadership as well as the ofSicial machinery has failed to launch progressive plans in any of the province, including Khyber Pakhtunkhwa where the Pakistan Tehreek-e-Insaf is in power with a slogan of a “change”. According to newspaper reports, the KP has emerged as the most unfriendly province from business point of view while Balochistan is regarded
comparatively a better place for business and investment. The provincial government in KP is collecting 24 kinds of taxes. The number of taxes in Punjab is 17, in Sindh 14 and in Balochistan 13 which the provinces are collecting through various agencies. A host taxes are collected through a host of agencies, but the provinces still look toward the federal government for assistance and it provides them required funds by taking loans from international donor agencies. In Sindh province, the Sindh Revenue Board and the Excise and Taxation Department are the collecting agencies while in Punjab; four departments are involved in tax collection, including Punjab Excise and Taxation Department and Punjab Revenue Authority. Five depart-
ments each collect taxes in Balochistan and Khyber Pakhtunkhwa, but the element to provide essential human services is missing in all four provinces what to speak of Gilgit-Baltistan, FATA and Azad Kashmir. Political parties make tall claims during elections that they will change the lot of the people after coming to power, but forget everything after assuming the ofSice. The answer is simple. Most of the political leadership is incapable of progressive vision and is the regular traveller of the beaten tracks. Unfortunately, Pakistan is the only country in the world where the investors have to pay 47 kinds of taxes to start a business. In United States, a businessman gets all his legal and utility work done just in one day, but a businessman
in Pakistan has to deal with several provincial departments and ‘pen of approval’ only moves when it is injected with money. Otherwise, the investor is harassed to the extent to pack and leave for another destination. However, the federal government is held responsible for every woe, which has its own merits and demerits. Things will not move in right direction unless the provinces take full responsibility of the proSit and loss in their respective domains. The provincial governments should wake up and enact such laws which provide protection not only to local businessmen, but also to foreign investors. No one will stop them from embarking on the journey of development and prosperity if they have a will to do something for this nation.
9
www.customsbulletin.com
Govt urged to introduce tax reforms ISLAMABAD: Pakistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain has asked the government to bring tax and collateral reforms to boost economy in a short span. While addressing the business community, he said documentation of the economy is prerequisite for national development while undocumented economy has kept masses and business community from growth and prosperity. He said that government should take all stakeholders in confidence to document economy and underground economy, reported to be 60 percent, is expanding at a high rate.
WHT on banking transactions: Govttraders stalemate can become major problem akistan Businessmen and Intellectuals Forum (PBIF) and former provincial minister President Mian Zahid Hussain has said that the impasse between the government and business community over imposition of withholding tax on bank transaction can become a major problem in the country. While talking to representatives of traders, he said that the issues of bank tax must be resolved as it continues to hit banking industry while promoting parallel banking system which is adding to black economy. He said that many in the business community have printed receipt book matching cheque book which are being used for transactions which will flourish parallel banking. Moreover, Mian Zahid Hussain said that businessmen are preferring business through lockers and increasing using dollars which is not good for economy. According to SBP, deposits have been reduced by 5.2 percent.
P
Business community flays hike in gas tariff he business community, strongly rejecting the recent hike in gas tariffs, has said that the government should not punish masses but try to reduce rampant corruption in gas utilities touching Rs40 billion annually. Islamabad Chamber of Small Traders Patron Shahid Rasheed Butt, in a statement, said that the IMF condition to jack up prices was an excuse as the government only act according to the conditions when it is in their own interest. He said that gas prices are linked to oil which continue to recede therefore the gas price should have been reduced which makes the recent tariff rise illegal.
T
Wednesday September 9, 2015
Chambers
Fcc recognises LccI’s efforts for economy, education LAHORE
cuStoMS BuLLetIN report www.customsbulletin.com
T
he FormanChristian College (FCC) has named one of its historic halls after the Lahore Chamber of Commerce & Industry to acknowledge the LCCI’s services for economy and education in the country and to strengthen industry-academia relations. FCC Rector Dr James Tebbe, LCCI President Ijaz A Mumtaz, Vice President Syed Mahmood Ghaznavi, former president Mian Misbah-urRehman, Executive Committee Members Chaudhry Ahmed Saeed, businessmen, educationists, philanthropists and economists were present on the occasion. The FCC and LCCI ofSicials also signed a memorandum of understanding (MOU) aimed at establishing long term, sustainable and mutually beneSicial cooperation in areas of bilateral interest for promoting research, training, education, andemployment opportunities between LCCI and FCC. As per MoU, both institutions would ensure internship and rec-
ommendations for job placement, participating in seminars and standing committees, FCC consultancy, information and data exchange, collaborative research projects, short term training programs, running of educational programs on specialized topics, participation of LCCI in curriculum development and seats for LCCI members, staff & their chil-
dren for FCC degree programs. LCCI President Ijaz A Mumtaz while speaking on the occasion said that collaboration between the Lahore Chamber of Commerce & Industry and Forman Christian College would go a long way and strengthen the industryacademia linkage. He said that keeping in view the importance of education The Lahore Chamber of Commerce
Mobicash services to be available on NADrA e-Sahulat M
ISLAMABAD
cuStoMS BuLLetIN report www.customsbulletin.com
obicash and NADRA Technologies Limited (NTL) signed A Memorandum of Understanding (MOU) to launch Branchless Banking services on NADRA e-Sahulat platform. This partnership enables Mobicash customers to utilize the 12,000+ NADRA e-Sahulat kiosks across Pakistan for utility bill payments, domestic money transfers, loan repayments, opening of new mobile accounts and various other services in the futures. Saleem Rafik,
Director General Operations – NTL signed the MoU on behalf of NTL, Mobicash was represented by Ghazanfar Azzam, CEO – Waseela Bank. Both expressed great potential in the partnership and also talked about other ventures that could be undertaken together by leveraging their platforms in the future. Saleem Rafik stated that NADRA e-Sahulat franchise model was the first platform to offer electronic payment of utility bills in Pakistan. He further explained, “NTL believes in collaborations and Mobicash is a strategic partner for providing digital services in Pakistan. The collaboration with
Mobicash is a giant step towards adding a portfolio of branchless banking services in to our e-Sahulat platform. Our joint network will enable domestic remittance and other Branchless Banking services for the convenience of public. The joint venture will facilitate banking industry for financial inclusion in the larger national interest”. “e-Sahulat platform is the first real switch towards electronic banking and together we both share a common goal of providing micro-finance services to rural and other under privileged areas of the country”, added Ghazanfar Azzam.
and Industry has decided to continue to support the educational institutions to the maximum. “History is a race between education and catastrophe and if we do not want to be history we need to get educated”, Mumtaz said. He said that if we have any desire to be a developed nation, we need to realize the importance of education in national development.
Preparation for LCCI elections in full swing he preparation for upcoming elections of Lahore Chamber of Commerce and Industry (LCCI) by different groups is in full swing as the Founders-PIAF Alliance has announced to start campaign by inaugurating its election office near Lahore Railway Station. The Alliance leaders have pledged to continue to raise voice for the solution of the problems being faced by the business community. The participation of large number of market representatives in a recent function was enough proof to make the point that the business community wanted continuity in the policies introduced by the PIAF-Founders Alliance. The Founders Group has decided to continue its alliance with Pakistan Industrial & Traders Association Front (PIAF) for the upcoming election of LCCI for 2015-16.
T
10
www.customsbulletin.com
Bangladesh soybean exports fall 71.59% in August Wednesday September 9, 2015
World
KOLKATA: Export of soybean meal during August, 2015 was just 769 tons as compared to 2,778 tons in August, 2014 showing a decrease of 72.33 per cent over the same period of last year, according to a release issued by Soybean Processors Association of India (SOPA) on Friday. On a financial year basis, the export during April 2015 to August 2015 is 35,858 tons as compared to 96,201 tons in the same period of previous year showing a decrease of 62.73 per cent. During current Oil year, (October 2014 – September 2015), total exports during October 2014 to August, 2015 is 5,85,485 tons as against 20,60,782 tons last year, showing a decrease by 71.59 per cent. The data has been collected and compiled by SOPA based on the information received from the Members.
uk border agents seize £56m Bangladesh customs seizes 16kg in cocaine at Dover gold at airport
DOVER
cuStoMS BuLLetIN report
C
www.customsbulletin.com
DHAKA
cuStoMS BuLLetIN report
M
ore than a tonne of cocaine worth £56 million has been seized off the coast of the UK. Border Force ofSicers found the stash on a yacht and arrested two men at Dover. The two men, Hendrik Brugmans and Raymond Aalder, were arrested and the investigation passed to the National Crime Agency. Brugmans, 68, who gave an address on the Caribbean island of Curacao and Aalders, 46, of Kesteren, Netherlands, appeared at Folkestone Magistrates Court on Wednesday charged with drug trafSicking offences. Brugmans withheld his plea while Aalders denied the charge. They were remanded in custody and will next appear at Maidstone Crown Court on Friday, September 25. Sue Young, Border Force re-
Malaysian police seize 75kg of syabu worth rM7.6m elangor Criminal Investigation and Narcotics Department have successfully smashed a drug syndicate, seizing 75kg of syabu worth of RM7.6 million, at Sungai Pelek, Sepang. Selangor police chief Datuk Abdul Samah Mat said through a public tip-off on Aug 31 at about 5pm, they have arrested three suspects at a drug processing lab. Abdul Samah said during the bust, all three were at the lab. He said from the result of the raid they found seven plastic barrel contained drugs in liquid form, 30 transparent plastic sachets containing white powder, two plastic bags containing a black liquid, a plastic container that has chunks of cocaine and powder, and another transparent plastic bag containing cocaine powder. “The initial investigation showed that the suspects was producing drugs for sale to the domestic market.
S
www.customsbulletin.com
gional director, said: “Excellent work by the crew of the Vigilant and ofSicers from our specialist deep rummage team has prevented a huge amount of cocaine from reaching the streets.“Our Sleet of cutters plays a key role in protecting the UK by intercepting and deterring shipments
of drugs and other prohibited goods, as well as vessels operated by criminal gangs who attempt to trafSic people into the country. “Working with the NCA we are determined to do all we can to prevent drug smuggling and put those responsible behind bars.”
England deputies seize counterfeit cigarettes in Southport, Waterloo
C
ounterfeit cigarettes and tobacco worth more than £2,000 have been seized following raids by Sefton Council Trading Standards in a special Tobacco Enforcement initiative. More than 6,000 illegal cigarettes along with pouches of tobacco were seized after retail premises in Waterloo and Southport were visited by Trading Standards ofSicers and specially trained to-
bacco sniffer dogs. The seizure included counterfeit and non-duty paid products which cannot be legally sold in the UK. Cllr Paulette Lappin, Cabinet Member for Regulatory, Compliance and Corporate Services, said: “We will always take action against anybody who chooses to trade in illegal tobacco. “Sales of illicit tobacco is completely unfair on those traders who sell UK tobacco products legitimately.
ustoms Intelligence ofSicials detained a man and seized gold bars and ornaments weighing around 16 kg at Hazrat Shahjalal International Airport in Dhaka on Friday night. The detainee is SM Nurul Islam. On secret information, the customs intelligence ofSicials recovered the gold bars from a toilet at the departure immigration hall of the airport around 10:45 pm. The seized gold was being counted till Siling of the report. Customs intelligence director general Moinul Khan said several gold bars weighing 10 grams each and a huge number of gold ornaments were recovered worth almost Tk 8 crore. Moinul Khan said Nurul Islam is a staff of airport cleaning Sirm Anik-Ayan trade international. Meanwhile, Customs Intelligence Department has seized gold, foreign currency, electrical equipment and drugs worth Tk 5.05 billion and around 27,489 cartons of foreign cigarettes from various entry points
into the country during the last 25 months. This is an almost ten-fold rise over the seizures over nine years, during which they seized contraband worth a mere Tk 540 million and 3,297 cartons of cigarettes. Its Director General Moinul Khan presented these seizure statistics while inaugurating their new headquarters on Monday. He attributed this to the growing professional efSiciency of the department — more active detectives, better use of modern technologies for surveillance , overall capacity development to cover new areas.. Khan said that they have also stepped up raids on various markets to seize contraband make-up, apparels and mobile phone sets. The department had Siled 1,922 cases in the last 25 months, the customs department chief said, apparently very pleased with the work of his subordinates. However, many say the seizure statistics may not reSlect more efSicient Customs Intelligence, but a huge spurt in contraband smuggling. There have been a number of media reports that Bangladesh has become an international route for smugglers.
Sri Lanka seafood exports fall by 36% to $85.8m in h1
S
ri Lanka seafood exports dived 36 percent to 85.8 million US dollars in the Sirst six months of 2015, following ban by the European Union, ofSicial data showed. The Central Bank said exports of Sisheries products to the EU fell 72 percent in June 2014 from a year earlier. But
exports to non-EU markets picked up 18 percent. June exports of total Sisheries products fell 26.7 percent to 13.5 million US dollars from 18.4 million a year earlier. Sri Lanka’s Sish exports was banned after the country was unable to convince the EU that is was taking sufSicient steps to counter.
uS pork exports down by 0.5% compared to 2014
P
NEW YORK
cuStoMS BuLLetIN report www.customsbulletin.com
ork exports have been in gradual decline for a long time now, write Ron Plain and Scott Brown from the University of Missouri. US pork exports peaked in 2012 at four times the level of 2000. Since then there has been a slow de-
cline. Pork exports have been below the year-ago level for 11 of last 13 months. Pork exports totaled 395 million pounds during July, down 0.5 per cent compared to a year ago. During the Sirst seven months of 2015 pork exports were down 4.3 per cent with the biggest decline being shipments to China, Russia and Japan. In a positive sign, pork exports to China during July were the most
for any month since March 2014. US pork imports totalled 85 million pounds during July. That was up 7.5 per cent compared to a year ago. Pork imports have been above the year-ago level for 26 of the last 28 months. Through July, 2015 pork imports are up 18.1 per cent with most of the increase coming from Canada. Pork exports equalled 20 per cent of US production in July. Pork
imports equaled 4.3 per cent of production. More people with more money to spend are good for meat demand. The Bureau of Labor Statistics says that the economy added 173,000 jobs in August. That was 45,000 below the average of trade forecasts. For the 16 weeks beginning on April 20, hog slaughter averaged 2.089 million head.
11
www.customsbulletin.com
Port of Seattle lunches internal investigation after e-mails show employee calling black business SEATTLE: Port CEO Ted Fick placed two port employees on paid administrative leave after a racial discrimination lawsuit revealed port staffers trading offensive, racially charged language. This week, the Port of Seattle announced that it is pursuing an internal investigation regarding e-mails exchanged between two port staffers that contained racially charged insults. One set of e-mails provided to The Stranger appear to show the airport’s dining and retail manager calling a black business owner a “thug.”
Ports & Shipping
port of Virginia cargo volumes mount in July
NY, New Jersey ports saw record container traffic in july
VIRGINIA
NEW YORK
cuStoMS BuLLetIN report www.customsbulletin.com
he Virginia Port Authority, which operates terminals in Portsmouth, Newport News and Norfolk, reported Thursday that 225,988 standard 20-foot containers, or TEUs, moved through the port last month. Cargo counts at the Port of Virginia are off to a strong start, as the Virginia Port Authority begins its new fiscal year. The Virginia Port Authority, which operates terminals in Portsmouth, Newport News and Norfolk, reported Thursday that 225,988 standard 20-foot containers, or TEUs, moved through the port last month. That's an 8.8 percent increase from 207,771 container units posted in July 2014. For the calendar year, the port's TEU volume is 1.47 million, which is 10 percent ahead of the same period last year, and the fifth consecutive month TEU volume exceeded 210,000 units. "We started fiscal year 2016 with the highest volumes for TEUs, total containers and total rail containers for the month of July in the port's history.
T
Less congested East Coast ports key to sustaining Savannah’s gains he port of Savannah has had a blistering year of growth, with huge volume increases and market share gains in the Southeast and nationally. But for the leader of the Georgia Ports Authority, any optimism tied to being the fastestgrowing major U.S. port this year must be tempered by continuing difficulties at other East Coast ports that could end up affecting Savannah. The port has handled this year’s gains free of congestion, but its ability to permanently lock in diversions resulting from West Coast labor trouble and attract additional business following next year’s expansion of the Panama Canal will depend on it being part of a port range free of chronic bottlenecks.
T
www.customsbulletin.com
T
G
July. Traffic is also rebounding on the West Coast, with ports from Long Beach to Seattle reporting strong increases in container volumes last month. Together, the numbers indicate that shipping routes are slowly returning to normal, analysts say. New York and New Jersey also saw a smaller increase in imports of loaded containers, a measure of the amount of goods entering the
country through the port. Loadedcontainer imports grew 11.% in July, the slowest pace since April. Still, the strong port volumes on both coasts are a sign that U.S. imports as a whole remain strong, defying signs of a slowdown in global trade and unease about the economic health of major trade partners, said Jonathan Starks, an analyst with FTR Transportation Intelligence.
Port of Savannah to enhance its cranes eorgia Ports Authority (GPA) is to extend its use of process automation technology from Identec Solutions to support the operation of new ship-to-shore (sts) and rubber-tyred gantry cranes (RTGs) at the Port of Savannah. GPA will now install Identec Solutions’ automated container handoff and job promotion system on 30 new RTGs and, for the Sirst time, on
Court asks further investigations about suspected cocaine drums at Chittagong Chittagong court yesterday ordered the Department of Narcotics Control (DNC) to conduct further laboratory tests of an oil drum that is suspected of containing liquid cocaine. The court instructed the DNC to send samples from the drum – marked as number 59 out of 107 drums of imported sunflower oil – to the DNC’s lab in Dhaka to determine whether there was truly liquid cocaine inside. Additional Chief Metropolitan Magistrate Nurul Alam Mohammad Nipu passed the order yesterday, said CMP’s Additional Deputy Commissioner (Prosecution) Kazi Muttaki Ibn Minan. He said the court on August 30 had ordered the investigation officer of the case to collect samples from drum number 59. Yesterday’s order came after the IO, Chittagong Metropolitan Police Detective Branch Assistant Commissioner (North) Mohammad Kamruzzaman, produced the samples. Earlier, traces of cocaine was found inside drum number 96 while the DNC also suspected there might be cocaine in drum number 59 as well. On August 27, the IO pleaded before the court to be allowed to conduct further lab tests on drum 59. The search for cocaine began on June 6, when the Directorate of Customs Intelligence and Investigation sealed a container in Chittagong Port on suspicion that it was carrying 2,140kg of liquid cocaine.
A
cuStoMS BuLLetIN report he Port of New York and New Jersey handled a record number of shipping containers in July, though the pace of growth eased from the torrid rates seen in recent months. The port complex saw total traffic rise last month to 588,918 twenty-foot equivalent units, the standard measure for containers, a gain of 14.1% from a year earlier and 4.7% higher than June, when volumes also set an all-time high. July’s pace of annual growth was slightly faster than the 13.5% growth rate the port saw through the first seven months of 2015. East Coast ports have seen a surge in container volumes in 2015 as shipping lines diverted vessels away from West Coast ports that saw disruptions tied to labor strife earlier this year. However, ports along the East Coast saw the rate of growth tail off in
Wednesday September 9, 2015
four new super-post-Panamax quay cranes. The port hopes to gain increased crane productivity, quicker turn times for street trucks and internal terminal vehicles and improved worker safety, removing staff from the ground. The project is due to be completed by late summer 2016. The new cranes, supplied by Konecranes, will be delivered in
2015-2016 as part of a multi-million dollar investment in equipment, technology and infrastructure to handle expanding cargo volumes and prepare for the opening of the expanded Panama Canal. Curtis Foltz, executive director of GPA, said: “Without using technology to gather and action data in a more automated way, we couldn’t grow efSiciently.
Dhabi customs foils 6,435 attempts of smuggling
T
ABU DHABI
cuStoMS BuLLetIN report www.customsbulletin.com
he Department of Finance Abu Dhabi (DoF), represented by the General Administration of Customs – Abu Dhabi, has successfully foiled 6,435 attempts to smuggle illegal substances into the UAE through the various customs ports in Abu Dhabi during the Sirst
half of 2015. A total of 6,596 illegal substances were identiSied including illegal immigrations, and the smuggling of drugs, diesel, prescription drugs, tobacco and other contrabands. Mezyad Customs Centre recorded the largest number of seizures, which amounted to 1,447 illegal substances; followed by Abu Dhabi Central Post Customs Centre with 1,425, Al Ain Central Post Customs Centre with 914, Al Ain Inter-
national Airport Customs Centre with a total of 839, and Madheef Customs Centre with 658. The General Administration of Customs – Abu Dhabi continuously seeks to develop new work processes to maintain a healthy customs environment. The administration adopts the latest high level procedures and systems that help support foreign trade, increase government revenues through collecting fees im-
posed on the movement of certain goods. The General Administration of Customs – Abu Dhabi also seeks to consolidate its pivotal role in protecting the community from any risks resulting from foreign trade and the exchange of goods across borders. This is through thorough investigation and monitoring of all attempts to smuggle prohibited substances, attempts to evade payments of customs duties.
12
www.customsbulletin.com
Mianwali ASO impounds smuggled Toyota Corolla X worth Rs 1.4m FAISALABAD: The Customs Anti-Smuggling Organisation (ASO), Mianwali, has impounded a non-duty paid Toyota Corolla X worth Rs 1.43 million involving duty and taxes of Rs 730,695. The Mianwali ASO team, which falls in the jurisdiction of Model Customs Collectorate Faisalabad, following the instructions of Assistant Collector Muhammad Asim Awan, conducted a raid to impound the non-duty paid vehicles in the region. The ASO team intercepted a vehicle near Kundian Mor MM Road, Mianwali and asked the driver namely Noor Merjan to produce the documents showing the legal import and lawful possession of the vehicle.
Wednesday, September 9, 2015
CUSTOMS BULLETIN
Adjudication Collector Ali Raza orders issuing hearing dates in pending cases ISLAMABAD
ShAhID MINhAS
www.customsbulletin.com
C
ollector, Collectorate of Customs Adjudication, Islamabad Muhammad Ali Raza has directed the staff to streamline the pending cases in order to settle them early. According to the details, after assuming the charge of collector here in Customs Adjudication, Islamabad, he directed the staff to organize the cases and issue the hearing dates in pending cases. The collector has also held meeting with the additional and deputy collector adjudication and discussed the matters relating to adjudication. In the meeting, he was briefed on cases being heard by the department and about pending cases. It is important to mention here that Muhammad Ali Raza is a Pakistan Customs Service officer of BS-20 who has assumed the charge of the post of collector on September 1. Earlier, he was serving as the Customs Internal Audit as director.
Customs values of petrochemical products unchanged KARACHI
AFtAB chANNA
www.customsbulletin.com
T
he Directorate General of the Customs Valuation is reported reluctant to revise custom values of petrochemical products despite remarkable decline in the POL prices in the international market, it is learnt. The sources told Customs Today that the customs valuation directorate general had Sixed the
values of petrochemical products in 2012. After that no new value of petrochemical has so far been Sixed. The importers have time and again approached the customs valuation to re-Six the customs values of petrochemical products following remarkable reduction in the POL prices in the international market. However, the customs valuation ofSicials have clearly told the staff not to entertain the importers, seeking reduction in petrochemical products as it would bring loss to the national exchequer, sources added. “OfSicials are allegedly told
to delay the applications of the importers, seeking to re-Six customs values of petrochemical products,” the sources said. Meanwhile, Customs, Collectorate of Adjudication-II has served four show-cause notices on M/s Fatima Fertilizer Company Limited Lahore for taking illegal beneSits under SRO 575(I)/2006, causing serious Sinancial losses to the national exchequer, it is learnt. The scrutiny of the import data revealed that Fatima Fertilizer Company imported consignments of stainless steel piping, cables, scaffolding, ladder, tube etc
through MCC Appraisement (East), Custom House and illegally availed the beneSit of inadmissible exemption of custom duty as in excess of 5 percent under Sr No 20 & 21 of SRO 575(I)/2006 dated 5.6.2006. Therefore, an amount of Rs 31.204 million was short paid on account of custom duty, withholding tax and sales tax. Hence, the importer has violated the provisions of Section 32(1)(2) and (3A) of the Customs Act, 1969, punishable under clauses (1), (14) of section 156(1) of the Customs Act, 1969 read with section 33 of the Sales Tax
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
Act 1990, chapter X of the Sales Tax Special procedure Rules 2007 (special procedures for payment of sales tax by the importers ) and section 148 of Income Tax Ordinance 2001. When contacted, Director PCA Karachi told Customs Today that the contravention reports had been forwarded herewith for initiation of adjudication proceeding. Now, the Customs Adjudication-II has issued show-cause notices to the importers or appear before the Collector AdjudicationII Chaudhry Javed and present their view point.