Friday, 13 April 2018 by customs bulletin

Daily on www.customsbulletin.com

Find us on

pAkiStAn’S fiRSt inDeptH newSpApeR on cuStoMS

Daily

ABC Certified

Karachi, Fri April 13, 2018

ISLAMABAD

M ARSHAD

www.customsbulletin.com

he Commerce Division is preparing strategic trade policy framework for the period 2018-23. However, the policy framework is being prepared through an entirely home grown process of consultation with the private stakeholders like trade associations, chambers, leading exporters, academia and

think tanks and the public sector organizations and ministries. The technical assistance, however, has been taken from the different international development organizations like World Bank, Asian Development Bank and others to Sill the research and capacity gaps. A source at Ministry of Commerce (MoC), told Customs Today that Commerce Division had received written input from the associations, chambers , commercial sections abroad and academia

Vol 3, Issue No. 7

Price Rs. 14.00

for STPF 2018¬23. Moreover, a series of consultative sessions has been held with all the export oriented trade bodies in Karachi, Lahore, Islamabad, Peshawar, Quetta, Hyderabad, Sialkot, Faisalabad, Sukkur and Multan. Now, the commerce division is in the second round of consultations with the public sector organizations. The draft policy will be submitted for the approval of the cabinet on completion of the consultative process” the source added.

Customs impounds 187 vehicles and other items valued at Rs315m

Customs Export recovers evaded amount of Rs 13.19m from defaulter companies

Customs impounds Rs 951.27m illegally imported items, vehicles

Valuation Ruling No:919/2016 poised to be revised by Surriya Butt on May 11

Customs posts 22.04percent comparative growth with Rs3097.75m profit

ASO Islamabad took into possession 187 oﬀending and NDP vehicles | See pAge 02 |

Customs Export has recovered evaded amount of taxes and duties of Rs 13.19 m | See pAge 03 |

Custom Preventive has been quite active against the movement of smuggled goods | See pAge 04 |

DG has decided to revise the Valuation Ruling No: 919/2016 on May 11, 2018 | See pAge 09 |

The last nine months’ collection performance of the MCC Peshawar | See pAge 16 |

www.customsbulletin.com

Govt announces to abolish FBR property valuation Friday, April 13, 2018

ISLAMABAD: The government has announced a general amnesty for regularizing undeclared incomes within Pakistan at the tax rate of ﬁve percent. According to draft ordinance, the amnesty will be extended to every resident company, resident association of persons and all citizens of Pakistan wherever they may be except holders of public oﬃce. The ordinance provides for regularization of all undeclared incomes earned before June 30, 2017 on all local assets (gold, bonds, property) on a payment of 5 percent.

Islamabad

customs impounds 187 vehicles and other items valued at Rs315m

ISLAMABAD

cuStoMS BuLLetin RepoRt

tARiQ DeRYA

www.customsbulletin.com

he Customs Appellate Tribunal reserved a decision on a customs reference filed by M/s Pakistan Telecommunication Company Limited (PTCL). Member Technical Ziauddin Wazir heard the matter along with other cases involving Model Collectorate of Customs and Directorate General of Investigations and Intelligence, Islamabad. The company had filed the reference against Collectorate of Customs. Earlier, the bench had reserved a decision on M/s National Highway Authority’s matter which had challenged a decision announced by MCC’s collector customs before the tribunal. The bench reserved the decision after hearing arguments in the case. The bench adjourned the hearing of Khurram Zafer Nazeer Ahmed, and M/s Musa Ghee International’s cases filed against MCC and M/s Waseem Autos and M/s Nisar Traders cases. M/s Waseem Autos and M/s Nisar Traders had filed cases against Collectorate of Customs and Directorate General of Intelligence and Investigations, Islamabad. The bench had dated in oﬃce hearing on cases filed by M/s Parts & Parts, M/s Chief Autos, M/s Aman Elahi, M/s Kohinoor Traders, M/s Saleem Silk Centre, M/s Five Star Trading, M/s Pakistan Royal Group and M/s Nayatel Private Limited.

he Anti-Smuggling Organization (ASO) Islamabad took into possession 187 offending and NDP vehicles along with various kinds of imported smuggling goods worth Rs315million during Sirst nine months (July to March) FY17-18. This was stated by Majid Hussain Gaad, Assistant Collector, AntiSmuggling Organization (ASO) Islamabad, while give an exclusive interview to Customs Today. He said that the ASO is working in different shifts with full devotion while vigilance under the jurisdiction of Model Customs Collectorate (MCC) has been enhanced with modern techniques. Talking about the performance of ASO during Sirst three quarters, he said that, during said period, the ASO impounded 156 offending vehicles used for carrying smuggling goods worth of Rs185.27million. The impounded offending vehicles comprise passenger busses, trucks, Mazda trucks, cars, Hiace and pickups. Assistant Collector told CT that the Car Cell of the ASO took into possession 31 Non-Duty-Paid (NDP) vehicles valued at Rs126.84million. Describing details of imported smuggled goods during July to March FY17-18, he said that the ASO Islamabad, under the guidance

customs Appellate tribunal reserves verdict of case filed by ptcL

of Zulfikar Ali Chaudhery, Collector MCC Islamabad, made critical and difficult seizures against the tax evaders and smugglers. During the said period, the ASO seized 49073 yards of different qualities of cloth priced at Rs28.16million and did 100987 kilograms of smuggled food grains worth Rs13.24million whereas it confiscated 10319 kilo-

grams of foreign origin tea valued at Rs3.04million. Assistant Collector ASO Islamabad further said that, during above said duration, it seized 910 smuggling tyres and tubes priced at Rs4.56million as well as it did 2541 ally rims worth Rs1.78million. The ASO confiscated 17369 auto spare parts valued at Rs7.44million.

During first nine months of FY17-18, the ASO impounded 1315 liters of mobil oil priced at Rs0.950million and did 6190 packs of different brands of foreign origin non-duty-paid and fake cigarettes worth Rs4.27million. The ASO seized 19423 numbers of smuggling electronic items priced at Rs33.56million.

iHc seeks record of customs case filed against fBR

ISLAMABAD

nAeeM uLLAH tARiQ www.customsbulletin.com

he Islamabad High Court (IHC) has directed parties to submit record in customs case Siled by M/s Lakson Tobacco Corporation Limited against ofSice of the Federal Board of Revenue (FBR). A division bench of the IHC comprising Justice Athar Minallah and Justice Miangul Hassan Aurangzeb heard the case. During previous hearing, the

bench had relisted the case for hearing along with other cases. Meanwhile another bench dated in ofSice hearing of M/s Hasas Engineering and Construction Company (Private) Limited’s case. The appellant had challenged a recovery notice issued by Commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of the show cause notice and demand of recovery of outstanding

tax amount in head of federal excise duty. M/s Hasas Engineering and Con-

struction Company Private Limited had prayed the court that FBR ofSice

had issued a recovery notice to the company which did not hold lawful grounds. The appellant had prayed the court to declare the act as illegal and without any lawful authority and an interim stay may be granted against recovery proceedings. M/s Hasas Engineering and Construction Company Private Limited had also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication did not address grievances of the appellant.

www.customsbulletin.com

Govt sets stage for business reforms KARACHI: Pakistan has introduced more than 70 percent of the industry reforms related to the World Bank’s ease of doing business index, aiming at 50th rank in the coming years, a senior official said. “So far around 54 reforms have been completed and are in implementation stage… 75 different reforms were identified to ease doing of business,” Sumaira Nazir Siddique, secretary of Board of Investment (BoI) said, addressing a workshop, which was cohosted by BoI and the World Bank.

SHc issues notices on petition filed by M/s ever fresh farms

Friday April 13, 2018

Karachi

customs export recovers evaded amount of Rs 13.19m from defaulter companies

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Sindh High Court (SHC) issued notices to the customs department and deputy attorney general on a constitutional petition filed by Ever Fresh Farms Private Limited, challenging imposition of regularity duty on Mozzarella Fresh Cheese and other times under Valuation Ruling Number SRO 1035 (1)/2017 dated 16/10/2017. During the hearing of petition, a two-member bench, headed by Justice Munib Akhtar also directed them to file their respective para wise comments on next date of hearing. Earlier, counsel for the petitioner stated in its constitutional petition that petitioner is engaged in the lawful business of import of food items.

pSX closes flat after last session selling spree KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

pened on positive note, the Pakistan Stock Exchange closed flat after adding just 9.76 points to reach 46486.49 level. The stocks recorded the highest trading level of 46759.47 points and lowest level of 46472.15 points, with the volume of 284 million shares and value of Rs11.26 billion. As many as 377 companies were active; of which 211 advanced, 151 declined and 15 remained unchanged. Agritech Limited was the volume leader with 19.14 million shares, adding Rs0.94 to reach Rs8.31. It was followed by Lotte Chemical Pakistan Ltd with 18.08 million shares, gaining Rs0.21 to end at Rs11.34 and Azgard Nine Limited with 13 million shares, adding Rs0.71 to close at Rs17.05.

KARACHI

wAQAR AHMeD AnSARi www.customsbulletin.com

he Customs Export has recovered evaded amount of taxes and duties of Rs 13.19 million from three defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Relevant Medicals availed undue beneSits and concessions after importing different consignments including medical accessories, electronic wheelchairs, BP apparatus and other goods by misusing the SRO 542 through Examiner Qayyum Dolari on September 4, 2017. Sources said that the company was allegedly involved in the tax evasion of Rs 3.56 million. After detecting the tax evasion the Customs Export served on it a Sinal notice on March 19, 2018 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s Relevant Medicals deposited the evaded amount in the ofSicial account of the Customs Export on 3rd April, 2018. On the other hand, the management of the M/s Farzi Chemicals also cleared Rs 3.63 million of taxes and duties. Sources told that M/s Farzi Chemicals also availed undue beneSits and concessions and avoided paying taxes according to the customs bylaws. Customs Export authorities is-

sued to it a Sinal notice on March 21, 2018. After receiving the notice, the management of the M/s Farzi chemical deposited the evaded amount of taxes into the ofSicial account. Meanwhile, The Customs Export has recovered an evaded amount of taxes and duties of Rs9.95million from defaulter companies which were earlier issued with notices to pay the outstanding dues. Sources told Customs Today that, during a scrutiny of the import data, it was

M/s Relevant Medicals availed undue benefits and concessions after importing diﬀerent consignments including medical accessories, electronic wheelchairs, Bp apparatus and other goods by misusing the SRo 542 through examiner Qayyum Dolari

nAB seeks evidence in tax refunds scam

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he National Accountability Bureau (NAB) Court called evidence against suspects namely Luqman Javed and Abdul Hameed Agar, who were booked in a case of illegal sales tax refunds and caused loss to the national exchequer in the tune of Rs120 million. During the hearing, investigation officer sought further time to

submit final charge sheet against the above mentioned suspects and evidence, therefore, court allows the time and adjourned the matter. Earlier, investigation officer appeared before the court and submitted interim challan, he informed the court that on a credible information above mentioned suspects have been arrested by the officials of the NAB, who were sent them to Central Jail Karachi on judicial remand, however, investigation has not been completed yet, therefore,

court may give some time to file final charge sheet against the said accused persons, after the hearing, court granted time and directed him to complete the investigation and file final challan within reasonable period. It needs to be mentioned here that suspects were arrested from different areas of Karachi, who are beneficiaries of illegal sales tax refunds and nominated in reference in which Deputy Collector FBR Abdul Rauf Nasir was arrested on 25 October 2017.

revealed that M/s Sabeen Marble Pak Colony Karachi availed undue beneSits and concessions by importing polish and cutter machines by misusing the SRO 561 through Examiner Mateen Bilgrami on September 9, 2017. Sources further told Customs Today that the company was allegedly involved in tax evasion of Rs7.51million. The investigation continued after detecting the tax evasion and the Customs Export served on it with a Sinal notice.

Rupee depreciates against greenback he Pakistani rupee on depreciated against the dollar both in interbank and open market. As per the local money market, the dollar gained 15 paisas in open market for buying at Rs116.60 and for selling at Rs117.40. The dollar added 20 paisas in interbank for buying at Rs115.40 and for selling at Rs115.60.

www.customsbulletin.com

Customs detains SDO for smuggling currency Friday April 13, 2018

Lahore

LAHORE: Customs authorities have arrested a Wapda SDO for attempting to smuggle currency at Lahore airport. Akhtar Mehmood was caught with currency beyond legal limits, oﬃcials said. As per rules, a passenger can carry only $10,000 during international travel. The detainee told the customs authorities that he was carrying currency within limits. But during search, $1,5000, 2,687 Chinese Yuan, and RS9,530 were recovered from him, it is reported. Customs authorities booked him and shifted him to customs house for further action.

customs Appellate customs impounds Rs 951.27m tribunal sets aside ono in illegally imported items, vehicles misuse of DtRe LAHORE

LAHORE

SAJiD nAwAZ

www.customsbulletin.com

he Customs Appellate Tribunal has set aside an impugned order in misuse of DTRE and the appeal is allowed. The same appeal was Siled by M/s Pak Steel Industries Private Limited against Collector Customs Adjudication Lahore. Justice retired Malik Manzoor Hussain, Chairman Customs Appellate Tribunal, passed the judgment with remarks that appeal is allowed and impugned order is set aside. According to details of the case, on the information received through Director General, Intelligence and Investigation-FBR Islamabad, that importer is misusing the concession regarding the duty-free import of raw martial under the

weekly inflation up by 0.64pc he Sensitive Price Indicator (SPI) based inflation for the week ended for the combined income groups, witnessed an increase of 0.64 percent as compared to the previous week. The SPI for the week under review in the above mentioned group was recorded at 222.51 points against 221.09 points last week, according to latest data released by Pakistan Bureau of Statistics (PBS). As compared to the corresponding week of last year, the SPI for the combined group in the week under review also witnessed decrease of 0.89 per cent. The weekly SPI has been computed with base 2007, 2008=100, covering 17 urban centers and 53 essential items for all income groups. Meanwhile, the SPI for the lowest income group up to Rs 8,000 also increased by 0.60 percent as it went up from 208.76 points in the previous week to 210.02 points in the week under review. –CB Report

DTRE scheme and duties and taxes are taxable on the imported raw material. The case of the M/s Pak Steel Industries Private Limited was selected for scrutiny. After the complete examination of all the record, Rs75million was charged from the appellant in violation of DTRE rules notiSied vide SRO 450 (I)/2001. After a show cause notice, the adjudication proceedings were culminated and order-inoriginal was passed with the remarks that the department may not recover the duties and taxes from importer. Being aggrieved from the order and an appeal was Siled with the Customs Appellate Tribunal on the grounds that all the facts disclose that importer has violated bylaws and impugned order beyond a proper appreciation of bylaw, so the same appeal is liable to be set aside. On the other side, the respondent denied all the allegations.

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Custom Collectorate of Preventive has been quite active against the movement of smuggled goods into the city and carried out a number of operations seizing smuggled vehicles and goods worth of Rs 951.27 million during the Sirst nine months of the current Siscal year (from July 2017 to March 2018). Collector Customs Preventive Faiz Ahmad Lahore has advised Deputy Collector Muhammad Moazzam Raza, Superintendent Nasir Mehmood Tarar and entire ASO team to keep strict vigil on the movement of smuggled goods. During the period under review, the Customs Collectorate of Preventive seized 71 non-duty paid vehicles and miscellaneous goods worth of Rs 951.27 million. In ad-

dition, a sizeable quantity of narcotics, foreign currency and gold was also recovered. Model Customs Collectorate of Preventive had successfully seized smuggled vehicles and miscellaneous goods worth of Rs.300.27 million in the same period of last year July 2016 to March 2017. Sources told Customs Today that Customs Preven-

tive adopted a comprehensive policy against smuggling goods and vehicles. During the month of March 2018, Customs Preventive seized vehicle and miscellaneous goods worth of Rs.88.450 million. Sources told that due to effective strategy there is marginable decrease is being witnessed in smuggling attempts in the region.

customs issues rates of duty & taxes Afu surpasses feD collection target by 74.47pc under trade agreements ustoms Air Freight Unit It is necessary to mention here

s per the Customs rules a trade agreement between the Government of Pakistan and the government of a foreign country or territory, duty at a rate lower than that speciSied in the First Schedule is to be charged on articles which are the produce or manufacture of such foreign country or territory, the federal government may, by notiSication in the ofSicial Gazette, make rules for determining if any article is the produce or manufacture of such foreign country or territory and for

requiring the owner to make a claim at the time of importation, supported by such evidence as may be prescribed in the said rules, for assessment at the appropriate lower rate under such agreement. Further in respect of any article, a preferential rate of duty is speciSied in the First Schedule, or is admissible by virtue of a notiSication under subsection (1), the duty to be levied and collected shall be at the standard rate unless the owner of the article claims at the time. –CB Report

(AFU) Allama Iqbal International Airport (AIIA) surpassed revenue collection target of Federal Excise Duty (FED). According to the details, Federal Board of Revenue assigned revenue collection target of Rs880 million to Air Freight Unit, while the AFU successfully collected Rs954.47 million, which is more than the assigned target. The Customs Air Freight Unit was assigned Rs228.5 million revenue collection target for the previous Fiscal Year of 2016-17.

that Collector Customs Preventive Faiz Ahmad directed all departments to enhance revenue collection measures. Sources revealed that the AFU adopted a comprehensive strategy to recover outstanding pending amount from defaulters. Due to this strategy there is marginable increase is being witnessed in the revenue collection of Air Freight Unit Allama Iqbal International Airport during current Fiscal Year of 2017-18.

–CB Report

customs to register tempered vehicles for oﬃcial use

LAHORE

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Customs authorities have decided to temporarily register tempered nonduty-paid vehicles for government official use in Lahore. However, the confiscated vehicles used in smuggling attempts,

jeeps, tempered vegans & trucks and commercial vehicles would not be registered. The customs authorities have also sent an application to Excise Department to obtain computerized number plates of the vehicles, which would be temporarily registered. The Excise Department has started working on the application under the procedure de-

vised on the previous direction of high court. It is pertinent to mention that Customs Department confiscates hundreds of tempered vehicles every year in Punjab, out of which, most of the vehicles’ chasses numbers are erased or the part of chasses number is replaced with new number. The department auctions the non-

duty-paid vehicles but tempered vehicles are not auctioned. In past, the high court had allowed to utilise tempered vehicles for official use under the devised procedure, provincial laws and after permission of other concerned departments. The tempered vehicles would be registered after being checked by the forensic lab.

www.customsbulletin.com

ISLAMABAD

M fAiZAn

www.customstoday.com

he Federal Board of Revenue (FBR) has sought information from the Civil Aviation Authority, mobile phone companies, National Data base Registration Authority (NADRA) and commercial banks to bring tax evaders into the tax net, said Haroon Akhtar Khan, Special Assistant to the Prime Minister on Revenue. Addressing the participants at the launching ceremony of Restaurant Invoice Management System (RIMS) he said “the intelligence wing of the FBR has been strengthened as compared to the past and if one’s earnings do not match with expenditures, then one will have to answer to the FBR”. Haroon Akhtar said there is difference between hundi and money laundering, adding that the tax amnesty scheme was need of the country. He said that the FBR has launched Restaurant Invoice Management System

(RIMS), a technological based solution, to monitor sales on real time basis, thus reducing the human interface and bringing transparency in the tax collection process. The prime objective of web-based RIMS is to facilitate the taxpayers by relying on modern techniques to tap the difference between current and potential collections. The ceremony was attended by Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan, Sheikh Amir Waheed Tariq, President ICCI and Khurram Khan, representative from restaurant association. On this occasion Special Assistant

webive of t c e j b the ime o litate i c a the pr f o st odern RiMS i g on m n based i y l e yr yers b ap the taxpa es to t u q i ent n h tec n curr e e w t nce be ions ollect diﬀere c l a i t oten and p

to Prime Minister Haroon Akhtar Khan has said that success of Federal Board of Revenue is success of Pakistan. RIMS is totally FBR own effort and no help has been seek from out sources. The system will help to make the economy documented. FBR is providing maximum facilities to the tax payers and in this regard the speedy work on reforms in process. Federal Board of revenue is creating deterrence for non-Silers so that they compelled to include in the tax net. It is appreciable that RIMS has so far been successfully installed in 80 plus renowned restaurants operating in the federal capital and further implementation in remaining restaurants is in process. FBR, as a part of its ongoing strategy, is committed to rely more on use of modern techniques to bring about efSiciency and effectiveness in tax collection. FBR is all set to work in close collaboration with Chambers and Restaurants Associations to ensure application of this system in all restaurants of Islamabad.

www.customsbulletin.com

Friday, April 13, 2018

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

SBp report on state of economy

n its second quarter report on the state of economy, the State Bank of Pakistan expects the real GDP growth will surpass the last yearâ&#x20AC;&#x2122;s growth rate of 5.3 percent but will fall short of achieving the target of 6 percent. The growth of the large-scale manufacturing decelerated just to 1.6 percent of the GDP in the second quarter of the fiscal year 2018-19 compared to 9.9 percent growth in the first quarter. However, the six month growth is four-year high with low inflation during the first half of the fiscal year. The growth is pushed by rising demand from consumer and construction sectors which invigorated the manufacturing sector to work with full capacity. Despite an improvement in revenue growth, the overall fiscal deficit will exceed the target for the current fiscal year. The fiscal deficit was contained during the first half of the fiscal year 2018-19 at 2.2 percent of the GDP, down from last yearâ&#x20AC;&#x2122;s 2.5 percent. Apart from the large scale manufacturing sector, the bank pins hope on the agriculture sector. However, there is fear that wheat production would come under pressure due to non-availability of water, and a reduction in area under cultivation as compared to the last year. The cotton production is also expected to experience a shortfall of 2.5 million bales. In the wake of rising volume of current account deficit as well as fast maturing loans, the government will have to ensure that estimated inflow of revenues are realized during the year. Pakistan desperately needs measures to earn foreign exchange as trade deficit has increased pressure on the local currency. Though the State Bank sees positive signs in the devaluation of the Pakistani rupee, but in fact it has shook the entire financial system of the country. As the loans are heading toward maturity, debt servicing will challenge the ability and capacity of the government in the near future. The government gives much importance to revenue collection, but unreasonable and irrational pressure on trade and industry suppresses the growth rate. The authorities remain concerned about meeting the targets without devising any revenue collection system. The hard earned money is often spent or lost in nondevelopment projects.

new tax amnesty scheme P

LAHORE

DR AftAB AfZAL

www.customstoday.com

rime Minister Shahid Khaqan Abbasi has announced a new tax amnesty scheme for non-filers, giving them a last chance to come under the tax net. It is unfortunate that in a country of over 200 million people, only 1.2 million are registered taxpayers and even out of them, only 700,000 actually pay taxes. Will the latest move lure tax evaders to become filers is a million dollar question as it is not the tax money alone which keeps the potential taxpayers away from coming into the tax net, but the

system of tax collection which is marred by alleged corruption and mismanagement. Announcing the package of incentives for non-filers, the prime minister hoped the move will help collect revenues for the national exchequer. He has also declared that the national identity card number would be converted into national tax number to monitor tax compliance by all citizens across the country. The prime minister has made a history by giving relief to the salaried classes as a complete tax exemption will be granted to the citizens having yearly income of up to Rs 1.2 million. However, maximum

percentage of 15 percent will be levied on the income above Rs 4.8 million per annum. The owners of the offshore companies are the main target of the amnesty scheme and now they have the chance to legalize their undeclared assets in the country or abroad after paying only nominal penalties. They would also be granted one-time exemption from the accountability laws. The government would like to monitor financial records of the citizens to stop tax evasion and dispel a general impression that taxpaying is option and not an obligation. However, the potential taxpayers will be forced to pay

taxes no matter they like it or not and tax evasion will not long be pretermitted. The announcement of the amnesty scheme is a right step in the right direction and it is the best opportunity for the owners of offshore companies to declare their assets and get legal cover. However, there is a need to develop a system to make the tax evasion impossible. This can be done by developing the system and not by giving unbridled powers to the official machinery. Until and unless the policymakers work on this subject and devise a system, the culture of tax evasion will continue to flourish.

www.customsbulletin.com

CJP summons PIA MD along with 10-year audit report ISLAMABAD: Chief Justice Justice Saqib Nisar has summoned the Pakistan International Airlines (PIA) managing director along with an audit report of the national ﬂag carrier. According to a statement by the Supreme Court, the chief justice has summoned the PIA chief in person. The PIA managing director has been directed to bring with him a 10-year audit report of the airlines as well as the account statement of the last decade. According to a Radio Pakistan on April 1, the Supreme Court took notice of PIA’s decision to give up profitable routes to other airlines and the intended privatisation of the airline. The court had also reportedly directed that no fresh recruitment shall be made in the PIA.

pcA detects tax evasion of Rs 9.35m by Smart Associates Hyderabad KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 9.35 million by M/s Smart Associate Hyderabad, it is learnt. Sources told Customs Today that M/s Smart Associate imported a consignment of fancy electric board and hardwires, and got it cleared from the PICT Karachi vide GDs on November 17, 2017 by paying customs duty at 12 percent after claiming the benefit of the SRO 558/2007. However, the subject items were correctly classifiable under the PCT 2504.2478, attracting customs duty at 16 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 9.35 million. The goods were cleared by Appraiser Ghulam Ali Mastori Sources told that the importer violated the provisions of

Friday April 13, 2018

National

Valuation Ruling no: 919/2016 poised to be revised by Surriya Butt on May 11 D

KARACHI

wAQAR AHMeD AnSARi www.customsbulletin.com

irectorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 919/2016 on May 11, 2018, it is learnt. Director General Surriya Butt has said that the department is reviewing suggestions from importers to set the new prices of PVC coated fabric. She said that some valuations, which were issued in 2016, are being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international markets. Sources told CT that a petition was submitted by the importers to customs valuation in which change in prices of PVC coated fabric was requested. Sources said the Valuation Ruling No: 919/2016 was issued on August 26, 2016. A meeting was held with the stakeholders on April 5, 2017. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in ques-

tion through which the actual current value could be ascertained. Sources said that presently Director General Surriya Ahmed Butt continues meetings with importers because a number of applications have been submitted by the importers to change the prices of import items.

Meanwhile, Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 898/2016 on May 21, 2018, it is learnt. Surriya Butt said the department was reviewing suggestions from various importers to set

the new prices of fruit jam (2007.1000, 9100, 2007 and 9900). She said some valuations which were issued in 2016 were being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international market.

govt asked to broaden tax net Section 36 (4-A) of the Customs Act1969, Section 16 read with Section 23 of the Sales Tax Act-1990 and Section 478 of Income Tax Ordinance 2001 punishable under clauses (247) and 215 of Section 258(3) of the Customs Act-1969, Section 66 of the Sales Tax Act-1990 and Section 25 & 14 of Income Tax Ordinance 2001 and Section 5-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001. Directorate of Customs Post Clearance Audit, director PCA Nadeem Memon has said in the month.

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Institute of Chartered Accountants of Pakistan (ICAP) has recommended the government to bring all sectors of the country within tax net in budget proposals. The proposals were given by Ashfaq Tola, chairman Committee on Fiscal Laws and Razi Khan, executive director. Moreover, an efSicient model for growth requires equitable taxation and credible tax administration, stated the budget proposals of ICAP. Pakistan’s tax-to-GDP ratio is the main impediment in the economic development, which has compelled the government to take short-term tax measures. At present, there is over dependence on the indirect taxes. It is, therefore, felt that with-

holding tax in indirect taxes both in federal and provincial level should be withdrawn. The FBR should focus on increasing the tax base instead of further burdening the existing taxpayers. The corporate sector, which is the most documented segment of the economy, has been neglected due to extreme abrupt tax collection measures taken by the government in order to meet annual budget targets. Further, the organized sector is seriously affected by incidence of sales tax (and federal excise duty, where applicable) as against non documented economy or unorganized sector. The service, wholesale/retail, transport and the agriculture business sectors are still not fully documented and most of them are out of the tax net. Even more than three million persons having commercial electricity connections are

hardly into the tax net. There is a serious need for the policymakers to simplify the complex system of determining the tax liability. Immediate remedial measures include abolishing taxes like alternative corporate tax, tax on undistributed proSits and super tax. Service providers, both corporate and non-corporate, should be exempted from levy of minimum tax. By charging nominal additional tax and creating narrow difference in tax deduction of Silers and non-Silers, the government failed to attract unregistered persons to get themselves registered. In order to obtain/utilize party wise data of unregistered persons from whom sales tax @ 1percent is deducted, a minimum threshold for sales tax withholding should be introduced in lines with the Income Tax Law. Harmonization of Sales Tax on

Services a) A uniform service tax law should be agreed upon by all provinces and the federal government for implementation in their respective jurisdictions by respective tax authorities. Further, a uniform tax return may also be introduced for the taxpayers. b) Revenue authorities should decide the basis of levy of indirect tax, which can be origination or termination to establish jurisdiction of taxation of services. c) To promote transparency and uniform interpretation, the Sirst schedule should be standardised covering all services along with standard tariff headings and standard deSinitions. The standard Sirst schedule should be adopted by all provinces and Islamabad Capital Territory while levying sales tax on services in their respective jurisdictions.

www.customsbulletin.com

FBR urged to cut tax rate Friday April 13, 2018

National nine Appraising oﬃcers granted performance allowance

KARACHI: The Federal Board of Revenue (FBR) has been advised to reduce the tax rate for documenting investments in real estate business and to increase the revenue collection. The government has provided relief to document undeclared money through investment on purchase of immovable properties under Section 236W of Income Tax Ordinance, 2001. The prevailing tax rate is three percent on purchase value under valuation tables deﬁned by the FBR.

Adjudication-ii serves notice on M/s Moon Steel for alleged tax evasion

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

Section 156(1) of the Customs Act1969 read with Section 68 and 79 of the Sales Tax Act-1990. The Directorate of Intelligence & Investigation Customs Karachi in its contravention report stated that the said importer misused SRO 1125 (I)/2011 by clearing the import of different kinds of cables and scrapes. Neither their manufacturing unit existed on the notiSied business addresses nor was there any manufacturing facility. So the said company caused the national kitty a huge loss. Therefore non-existence of the unit was an ample proof to establish beyond any doubt that the importer’s previous clearance as manufacturer under SRO 1125(I)/2011 availed exemption of taxes to the extent of 6 percent as AST and 3 percent as Income Tax were quite illegal and unlawful.

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ine more Customs officers of BS-16, after being selected through the process of internal job posting (IJP), have been granted performance allowance by the Federal Board of Revenue just a day after seven Inspectors were allowed the same allowance. The officers, including Imran Khan, Anam Hussain, Fateen Younis, Qasim Ikram, Muhammad Zunair Fayyaz, Zohaib Riaz, Ammaria Khanum, Muhammad Arslan Toor and Razia Yaqub, presently posted as Appraising officers at Model Customs Collectorate of Appraisement, Lahore, were granted performance allowance equal to 100 per cent of minimum of their basic pay (in pay scale-2011) with effect from April 3,2018 i.e the date of approval of the competent authority. According to the FBR, the grant of performance allowance will be governed through the terms.

nAB holds awareness seminar ational Accountability Bureau (NAB- Karachi) has organized an awareness seminar and walk as part of its “Awareness Campaign against Corruption”. The event was organised in collaboration with Institute of Business Management, Korangi Creek. NAB Director General Mohammad Altaf Bawany was the chief guest on the occasion while Talib Kareem, President, Institute of Business Management and various other notables from academia also participated. Addressing the ceremony, NAB DG underlined the role of youth in eradication of corruption from society. He said, responsibility heavily lies on the shoulders of our youth to become part of struggle to root out corruption. –CB Report

he Collectorate of Customs Adjudication-II on Tuesday issued a show-cause notice to M/s Moon Steel in connection with alleged tax evasion under the head of additional sales tax and income tax of Rs 220,654 by misusing the SRO 1125(I)2011. Importer M/s Moon Steel, importing a consignment of various types of cables and scrap on November 12, 2017 worth Rs 4 million through Goods Declarations KAPD-25874-2541896, under Section 3,4,9,7A,(4b),46,47 and 72 of the Sales Tax Act-1990 which further read with the Section 149 of the Income Tax Ordinance-2001, punishable under clauses (21) of

customs Appraisement east collects Rs4321m of revenue during 10 days of April T

KARACHI

wAQAR AHMeD AnSARi www.customsbulletin.com

he Customs Collectorate, Appraisement East, has earned Rs4321million of customs duty, sales tax, income tax and federal exercise duty during Sirst 10 days of April. Sources told Customs Today that the Customs Appraisement East received Rs2478million as customs duty, Rs845million of sales tax, Rs714million as income tax and Rs14.25million under the head of federal excise duty during 10 days of April. If we talk about Sirst 15 days of corresponding month of March, the Customs Collectorate, Appraisement East, has generated Rs6633million under the heads of customs duty, sales tax, income tax and federal exercise duty during Sirst 15 days of March including Rs3452million of customs duty, Rs1628million as sales

tax, Rs1447million of income tax and Rs16.58million under the head of federal excise duty during 15 days of March. In the whole month of March, the Customs Collectorate, Appraise-

ment East, has generated total Rs39billion, Rs120million under the heads of customs duty, sales tax, income tax and federal exercise duty including Rs14billion and Rs225mil-

lion under the head of custom duty, Rs18billion and Rs835million under the head of sales tax, Rs5billion, Rs114million under the head of income tax and Rs83million of FED.

www.customsbulletin.com

FIA’s Cyber Crimes Wing arrests two in ATM fraud case LAHORE: FIA’s Cyber Crimes Wing has arrested two accused, including a woman, at Saeed Chowk in an ATM fraud case. According to an FIA official, the arrested accused were identified as Mehmood Ahmad and Nasreen Bibi of Sheikhupura. He said 28 ATM cards and Rs 25,500 in cash were seized from them. Further investigations are underway.

pakistan Railways reduces green Line’s fares by 10 percent RAWALPINDI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

n order to facilitate the passengers of Green Line (5-Up/6-Dn), the Pakistan Railways have reduced over 10 percent fares. Divisional Commercial Oﬃcer (DCO) Pakistan Railways, Rawalpindi Raza Ali Habib talking to APP informed that Pakistan Railways have reduced over Rs 600 from Rs 5990 to new fare Rs 5340 for the passengers to travel from Rawalpindi to Karachi. From Rawalpindi to Lahore fare for Green Line has been fixed Rs 1200 while from Rawalpindi to Khanewal would be charged Rs 2410. Similarly, Rs 3180 is new fare for the train from Rawalpindi to Bahawalpur and Rs 4430 for Rawalpindi to Rohri. The passengers of Green Line would pay Rs 5060 for Rawalpindi to Hyderabad travel. He fur-

ther informed that due to enhanced security measures, quality service and punctuality, the number of passengers traveling via train is increasing day by day and over 42,56,318 passengers traveled through the rail service during 2017 from Rawalpindi Division. The division earned Rs. 1864.213 million last year, he added. To a question he said, Pakistan Railways, Rawalpindi Division have earned Rs. 1612.618 million against the set target of Rs. 1595.851 million up to March 20, during last nine months of 2017-18 financial year. Raza Habib informed that Rawalpindi division generated Rs 16.767 million additional revenue during the period particularly from passenger service. The income of Rawalpindi Railways passenger trains remained Rs 1864.213 million, revenue generated by freight trains was Rs 448.728 million and other heads contributed Rs 290.919 million during last year, he added.

Friday April 13, 2018

National

SHc directs customs authorities to release steel products on bank guarantees

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Islamabad High Court (IHC) has directed parties to submit record of the cases while hearing four customs matters filed against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue. A citizen, M Anwar Khan, had filed four customs references against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue. A division bench of the IHC comprising Justice Aamer Farooq and Justice Mohsin Akhtar Kiyani was hearing the matters. Meanwhile, another bench also dated in oﬃce the hearing on cases submitted by M/s Pakistan Tobacco Company Limited. The appellant had filed a petition, challenging a show cause notice issued by the Large Taxpayers Unit, Islamabad. According to details, M/s Pakistan Tobacco Company Limited had challenged recovery of issued to it in head of outstanding sales tax by the LTU, Islamabad. The company had submitted the department had issued the demand for the tax year 2010 under the head of sales tax. Federal Board of Revenue (FBR), oﬃcers of LTU including Commissioner Inland Revenue.

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Sindh High Court (SHC) has directed the Customs Department to release the consignment of steel products on bank guarantees on a constitutional petition Siled by M/s Steel Craft (Private) Limited, seeking release of its consignment. While the hearing of the petition, a two-member bench, headed by Justice Munib Akhtar, also issued notices to the Customs Department and deputy attorney general, directing them to file their respective para wise comments on the next date of hearing. After the arguments, the court passed order that “the petitioner shall pay to the department onehalf of the regularity duty that has been imposed whereas for the other one-half the petitioner shall provide a security in terms of bank guarantee/ pay order”. Earlier, counsel for the petitioner stated in its petition that it is engaged in the lawful business of import of steel products and in a rotten, petitioner imported a consignment of steel products and

iHc seeks record of four customs cases filed against AtiR

filed goods declaration, however, respondents imposed regularity duty on the same without approval of competent authority. Citing Secretary Ministry of Finance, Chairman Federal Board of Revenue, Collector of Customs Collectorate Appraisement East as respondents, he pleaded the court to declare the

act of the respondents is illegal, mala fide and arbitrary.He also pleaded the court to direct them to release its consignment on bank guarantee/ pay order as court surety and restrain the customs department from taking any coercive action against the petitioner till final order in this petition.

Lawmakers urge SBp to report on waived oﬀ loans

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he National Assembly Standing Committee on Finance has recommended to Ministry of Finance to provide the details of write off loans of last 10 years, from the amount of Rs100 million and above. The committee with Qaiser Ahmed Shaikh in the chair has discussed the calling attention notice moved by MNA Rana Muhammad Hayat Khan regarding inadequate laws for recovery of loans from the defaulters including waived off loans. The committee recommended to State Bank of Pakistan

(SBP) to inquire about the matter referred by the member regarding waive off loans by the government. The committee directed the SBP to provide the details in this regard within 15 days for further necessary action. The committee recommended that the matter pertaining to eradication of Riba should be resolved according to the Constitution of the Islamic Republic of Pakistan. Minister of State for Finance, Rana Afzal Khan informed the committee that the system could not be abolished in one go as the country had to deal with many institutions, including international Sinancial institutions, which worked on interest system. He further

said that the ratio of interest could be reduced gradually. While considering the implementation status of the recommendations made by the committee with regard to the deduction of markup rates on agriculture loans to the farmers, the committee once again recommended to Ministry of Finance to reduce the markup ratio on the said loans up to single digit. The committee recommended that payment of WHT @ of 2 percent adjustable for industrial importer at import stage for raw material following under chapter 25 to 55. No Exemption CertiSicate would be issued to industries, commercial importers importing raw material under chapter 25 to 55 will pay @ 4 percent WHT as

full and Sinal. However, rest regime of WHT will remain the same. The committee once again recommended to Federal Board of Revenue to reduce tax rates (236k, 236c) and increase should be made where required. The committee further recommended that FBR should directed their Sield ofSices to rectify pending anomalies i.e. Port Qasim, Karachi, where FBR values are much more than market values. The committee recommended that in the Sirst instance FBR should take measures towards documentations for bringing DC values and raised those by 15 percent and notify as FBR value by removing upper cap of 236w, as it will increase massive collection of revenue.

www.customsbulletin.com

Human traﬃcking on the rise in Afghanistan despite new laws

World Customs

KABUL: One year after Afghanistan strengthened human trafficking laws to prohibit the use of boys for sexual entertainment, there is little enforcement and trafficking is on the rise, experts say. “Bacha bazi” – in which young boys are abducted by commanders who force them to dance and sexually abuse them – was explicitly prohibited for the first time in the updated anti-trafficking and smuggling law, enacted in January 2017.

Friday April 13, 2018

taiwan catches drugs hidden inside machinery from china

DeA foils bid to smuggle heroin to Afghanistan

T KABUL

cuStoMS BuLLetin RepoRt www.customsbulletin.com

TAIPEI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ustoms in Keelung found 2 tons of raw materials enough to make ketamine for 5 million people hidden inside machinery imported from China, reports said. Five suspects were arrested in connection with the cases, but the authorities were still looking for the ring behind the drugs smuggling, the Liberty Times reported. The Ministry of Justice Investigation Bureau said it found 240 kilograms of ketamine and 1,884 kg of hydroxylimine hydrochloride, the raw material for the drug, hidden inside machines. If converted into the ketamine, the total street value would reach NT$1.5 billion (US$51.6 million). Three people could use 1 gram, so a total of 5 million users could have been reached by the amount smuggled into

13kg of gold seized at chittagong airport hah Amanat International Airport on Sunday morning aboard a Biman Bangladesh flight from Dubai, said airport Manager Wing Commander Sarwar-e-Jahan. “He was searched and had the materials he was carrying scanned based on a tip,” he told bdnews24.com. “The gold was melted, given a zinc coating and hidden inside various machines.” About Tk 65 million worth of gold was found hidden in the passenger’s hairdryer, drill, floor cleaning machine, rechargeable light and toys, said airport Customs Deputy Commissioner Uttam Biswas. “The gold was mostly hidden as chambers in the machines. This passenger made frequent trips. He is mainly a courier.” The detainee will be handed over to the police station and a case is being prepared against him, Biswas said. –CB Report

Keelung, the Liberty Times reported. The drugs were hidden inside shipping containers brought ashore last January and February, investigators said. Dogs reportedly sniffed out a strange smell coming from inside three types of machinery, and after inspectors cut through three layers of metal packing, they found the raw materials.

Meanwhile, Taiwan is to submit a formal statement to Turkey, voicing concern and asking for exemption from the country’s recent increase in tariffs on a range of imports, the Bureau of Foreign Trade said yesterday. The bureau is to submit a statement to the Turkish government via the Taipei Economic and Cultural Mission in Ankara.

Swiss post and Amazon sign contract to simplify delivery

wiss Post conSirmed this week it had signed a contract with ecommerce giant Amazon, months after rumours Sirst emerged. The contract simpliSies the transfer of merchandise across the Swiss border and allows the American company to bill customers the exact customs clearance fees. The head of the Swiss Post distribution centre in Daillens, canton Vaud, told Swiss public radio, RTS,

that the contract offered no preferential treatment to Amazon, with terms and conditions similar to those for other online businesses such as Germany’s Zalando. JeanGabriel Meylan added that the centre was testing its data transfer systems for quality assurance together with Amazon. He expected the contract with the world’s largest online retailer to be operational this spring. –CB Report

wo men have been convicted of charges related to what authorities call a large-scale conspiracy to smuggle heroin from Afghanistan into the United States. One of the defendants, Shamsuddin Dost, reportedly bragged to an undercover federal agent during a meeting in San Jose that he had friends in the Taliban and Afghanistan’s government, and said he was willing to kill people who interfered with his business. “National security people had detained their guys as part of the Taliban…. I secured their release,” Dost said, according to a DEA transcript. He later told the agent, “Don’t worry, those are people that are tied to me….They are Taliban and I know their relatives, uncles and I know their business. If they deviate, I know how to deal with them.” Dost’s co-defendant, Jawed Ahmadi, was sentenced to 70 months

in federal prison after peading guilty to conspiracy to distribute heroin. He was arrested in 2016 — on the same day he Slew from Kabul to San Francisco and is facing deportation after completing his sentence. Meanwhile, Dost is facing a minimum of 10 years in federal prison, as well as deportation. He took his case before a jury and was convicted on Jan. 28 of three felony charges related to trafficking heroin, including conspiracy. In 2016, a confidential drug informant told DEA agents working in Kabul that Dost had an uncle who owned Afghan heroin manufacturing facilities, and that they smuggled the drug into the United States inside shipments of rugs. During the investigation, authorities seized around 13 pounds of pure heroin in undercover buys, but say that amount would have been diluted to about 150 pounds before it was sold on the streets at a value federal agents estimate fell between $3.5 and $8.33 million.

Jordan plans to cut electricity consumption eputising for Prime Minister Hani Mulki, Energy Minister Saleh Kharabsheh on Wednesday launched the second national plan to rationalise energy, which aims at lowering electricity consumption by 2,000 gigawatts between 2018 and 2020, with a cost of JD700 million. Kharabsheh highlighted the importance of the plan in addressing energy challenges, at the top of which is the heavy oil bill that has constituted in some years 18 to 20 per cent of the gross domestic product, Sive times higher than the international average. The plan is part of the ministry’s endeavours to realise strategic goals

of the energy sector to improve energy efSiciency and lower consumption by 20 per cent by 2020, Kharabsheh noted. The minister described the plan as a “national roadmap”, which entails all programmes, projects and measures necessary to be implemented to reach all targeted indicators in cooperation with stakeholders. The procedures included endorsing the Renewable Energy and Energy EfSiciency Law and a bylaw on the criteria for exempting renewable energy resources and their devices, and devices of energy rationalisation from customs fees and, wholly or partly, the sales tax, he added. –CB Report

france and Luxembourg sign Beps driven double tax treaty

F PARIS

cuStoMS BuLLetin RepoRt www.customsbulletin.com

rance and Luxembourg have signed a new double tax treaty which incorporates provisions of the OECD’s base Taxation and ProSit Transfer (BEPS) guidelines. The treaty, signed during a Luxembourg state visit to France on 20

March, replaces the previous tax convention signed between the two countries on 1 April 1958. The modernised tax treaty incorporates the new international standards in tax matters and is based on the OECD’s latest model tax convention. It implements the new approaches to international tax developed in the OECD BEPS project and reSlected in the Multilateral Convention to Im-

plement Tax Treaty Related Measures, which both countries signed in 2017. The BEPS project aims to counteract the exploitation of gaps and mismatches in tax rules to artiSicially shift proSits to low or no-tax locations where there is little or no economic activity. Additionally, the new agreement contributes to improved legal certainty for the beneSit of tax authorities and the tax-

payer. According to a statement from the Luxembourg ministry of Sinance: “it can be emphasised that the new agreement reduces the degree of participation required to beneSit from the exemption from withholding tax on dividends.” Luxembourg’s minister of Sinance Pierre Gramegna said the new treaty showed the excellent relations between the two countries.

www.customsbulletin.com

France slightly narrows trade deﬁcit in Feb PARIS: France had a trade gap at 5.2 billion euros (6.37 billion U.S. dollars) at the end of February, slightly down from 5.4 billion euros (6.61 billion dollars) recorded a month earlier mainly due to falling imports, according to customs data released Friday. Due to a “sharp contraction in aeronautical supplies,” the country’s total imports were down by 1.4 percent over the period after they had increased by 1 percent in January, totalling 44.9 billion euros (54.97 billion dollars). French exports were worth 39.7 billion euros (48.60 billion dollars), down by 0.9 percent, France’s customs authorities said, adding that “The decline in exports, which remains limited, is essentially due to a few cyclical downturns.”

kpt ships movement and cargo handling report ollowing were the movements of ships and cargo handling at the Karachi Port Trust (KPT) during the last 24 hours, ending at 0700 hours. SHIPS ARRIVED: SM Vancouver Container Ship Dato Fortune General Cargo M.T.Shalamar Tanker Sima Giselle Container Ship Oriental Rose Tanker SHIPS SAILED: Kiran Australia Cosco Durban Tirua Ms Tiger Ocean Vendor BW Danube Brent CARGO HANDLING TURNOVER: The total cargo handled at Karachi Port during the last 24 hours closed at 238,890 tonnes. The breakup shows that the port has handled 89,248 tonnes of export cargo and 149,642 Metric tonnes of import cargo during the said period. Commodity wise handling in metric tonns is given below. COMMODITY: IMPORT: EXPORT: TOTAL: Containers 87,229 63,837 151,066 BulK Cargo

Ports & Shipping

iran’s services exports register increase

taiwan’s exports seen resuming growth in March aiwan’s exports are likely to have rebounded in March as electronics demand picked up, after a drop in February due to the Lunar New Year holiday, a Reuters poll showed. March exports are estimated to have expanded 7.6 percent from a year earlier, according to the median forecast of 14 analysts polled by Reuters. Exports fell 1.2 percent in February. Imports in March likely rose 9.6 percent from a year earlier, the poll showed, accelerating from a 0.9 percent growth in February, while the trade surplus is estimated to have reached $3.93 billion, compared with $2.92 billion in February.The year-over-year inflation in March, as measured by Taiwan’s consumer price index, is estimated to have eased to 1.6 percent, the poll showed, from 2.19 percent in February. Meanwhile, The domestic economy flashed a “green light” in February, pointing to stable growth as industrial production started a slow recovery, the National Development Council (NDC) said. –CB Report

TEHRAN

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ran exported $10,796 million worth of services during the Sirst 11 months of the last Siscal year Iran’s services exports registered a rise by 3.5 percent compared to the same period of the preceding year, according to the latest data released by the country’s Ministry of Industry, Mine and Trade. Iran’s revenues via services exports amounted to $1,939.8 million in the 11th Iranian calendar month The Islamic Republic puts technical and engineering services, tourism and transit sectors in service sector exports. Iran’s technical and engineering services exports stood at $750 million in the 11month period, registering a fall by 3.1 percent. Tourism sector revenues stood at $7,229 million, registering a fall by 1.1 percent year-onyear. The country’s revenues from transit increased by 19.9 percent to $2,817 million in the 11-month pe-

Friday April 13, 2018

riod. The railway transit registered highest growth year-on-year by 44.9 percent and stood at $129 million. Meanwhile, Iran’s traditional trade partner from the sanctions period, maintained its position as the Islamic Republic’s top trade partner in the first 11 months of the last fiscal year Over 19.7 percent of Iran’s non-oil exports went to China in the 11-month period. During the period, Iran exported

$8.229 billion worth of goods to China, 11 percent more, compared to the same period of the preceding year. Over 66 percent of Iran’s export was targeted to five Asian countries, including China, the UAE, Iraq, Turkey and South Korea during the first 11 months of the current fiscal year. Iran exported $5.862 billion worth of goods to the UAE, which marked 14.1 percent of Iran’s total exports’ value.

iran biggest trade partner of Afghanistan in 2017-18 535 1,086 1,621 Dap 7,388 7,388 Cola 719 Wheat 16,911 16,911Sugar 2,964 Oil/Liquid 53,771 4,450 58,221. Meanwhile, The Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours. ALONG SIDE (Bulk Oil Pier) OP-I Shalamar D. Crude Oil PNSC 04/04/18 OP-II Nissos Chiristiana D. Mogas AGAC 04/04/18 OP-III Chemway Arrow L. Ethanol Alpine 05/04/18 ALONG SIDE (East Wharves): 2/3 Egret Bulker L. Wheat WMA Shipcare 03/04/184 Reem 3 D. Bitumen Trans Maritime 30/03/18 10/11 Dato Fortune D. Gen.Cargo Sea Hawks 04/04/18 11/12 Nordic Tianjin D. DAP Bulk-Sh. 01/04/18 14/15 Naess Intrepid. –CB Report

KABUL

cuStoMS BuLLetin RepoRt www.customsbulletin.com

fghanistan’s Chamber of Commerce and Industries said Iran was Afghanistan’s biggest trade partner in the last solar year (March 2017-18) and exported goods worth over $1.98 billion to the neighboring country. ACCI said trade volume was $1.2 billion between Afghanistan and Pakistan and $1 billion with China in the same period. “Now Iran is our biggest (trade) partner,” ACCI deputy chief, Khan Jan Alokozay, told TOLOnews. “Iran has overtaken Pakistan’s place, which means we have more than $2 billion in imports and exports with Iran. Imports are high but exports are a lot less. Meanwhile, transit is also good through that route (Iran).” According to ACCI, Afghanistan’s

trade volume with all countries for the year totals $7 billion. Afghan economist, Qais Mohammadi, said the Afghan government should increase exports, as the value is a lot less than that involving imports. “In order to increase exports of a country, there should be a focus on products other countries

need (from Afghanistan), but the government has not worked on this matter so far,” he said. Afghanistan’s main imports from Iran are construction materials, food and fuel. ACCI’s statistics show Afghanistan exported at least 1 million tons of goods last year, particularly to Pakistan. According to Afghanistan’s

commercial attaché to Iran, Jaber Ansar, Iran holds a 22% share ($2.5 billion) from Afghanistan’s $11.5 billion consumer market. Among the 500 companies licensed to operate in Iran’s Chabahar, 165 are reportedly Afghan. Afghanistan’s Ministry of Commerce and Industries said Iran has provided special incentives to Afghan investors at Chabahar. “The problem of getting visas for Afghan investors to Iran has been solved and efforts are underway to provide further facilities to our investors,” Yahya Akhlaqi, transit director at the Afghan ministry, has been quoted as saying. Afghan news agency Wadsam cited the economic attaché at the Iranian Embassy in Kabul, Mohammad Reza Karimzadeh, as saying that Iran is offering an 80% discount in export tariffs and a 75% discount on import duties to Afghan traders using Chabahar.

www.customsbulletin.com

FIA arrests 335 human traﬃckers in last three months Friday April 13, 2018

Business

SIALKOT: The Federal Investigation Agency (FIA) arrested 335 human traﬃckers during the last three months in the Gujranwala division. According to FIA Divisional Deputy Director Mufakhar Adeel, the FIA also seized hundreds of passports of people,fake visa documents, fake stamps and other items from the accused. He said the FIA sent the accused behind bars after registering cases against them.

overseas pakistanis to avail from amnesty scheme ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

inister of State for Finance Rana Muhammad Afzal has said Overseas Pakistanis would have beneSits from the amnesty scheme as announced by the government to boost economy. Talking to a news channel, he said the economic reforms package would help expand tax network in the country. The government had reduced the tax rate through amnesty scheme. “We have been working on the scheme for the last one year, “ he said, adding under this scheme, people could not hide their assets abroad. A data bank was being for-

iRSA releases 73,300 cusecs water KARACHI

cuStoMS BuLLetin RepoRt

mulated through technology which would help identify the tax evaders, he said. The present government was working to improve the living standard of the people and for this, many development projects were being

china to monitor cpec projects with two sensing satellites

www.customsbulletin.com

he Indus River System Authority (IRSA) released 73,300 cusecs water from various rim stations with inflow of 92,600 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1393.29 feet, which was 13.29 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 30,600 cusecs while outflow as 18,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1067.15 feet.

completed, he added. To a question, he said overseas Pakistanis could not conceal the money after the announcement of this new scheme. Meawhile, Advisor to the Prime Minister on Finance Dr Miftah Ismail has

said that annual budget related proposals for IT and telecommunications sectors would be given due consideration as these were very important sectors of the economy. The advisor was chairing a high level meeting to discuss the tax proposals submitted by the Ministry of Information Technology and Telecommunications. The meeting noted that while the telecom sector had shown impressive growth in the last many years, IT Sector had also started to pick up and efforts should be made to further improve the growth momentum, said a press release. It was decided that further deliberation would be done by Federal Board of Revenue (FBR) and Ministry of Information Technology to Sinalize the appropriate tax proposals with a view to give a boost of these important sectors.

BEIJING

cuStoMS BuLLetin RepoRt www.customsbulletin.com

hina is to launch two remote sensing satellites for Pakistan in June this year, according to the China Academy of Launch Vehicle Technology (CALVT) website. According to reports, the satellites are being launched to monitor the development of the $ 50 billion China-Pakistan Economic Corridor (CPEC) projects. It will be the Sirst international commercial launch for a Long March-2C rocket for around

18 years after it carried Motorola’s Iridium satellites into orbit in 1999. The rocket will also carry the China-France Oceanography Satellite into space in September this year, CALVT said. The satellite will monitor ocean wind and waves. Long March-2C rockets are mainly used to send satellites into low Earth or Sun-synchronous orbits. China’s state news agency Xinhua reported the rocket will also carry the China-France Oceanography satellite into space in September this year. Earlier, China had also launched Pakistan’s communication

satellite PAKSAT-1R back in 2011. China and Pakistan had signed an agreement in 2016 for the launch of a special remote sensing satellite this year in 2018. In April 2016, the Pakistan Space and Upper Atmosphere Research Commission (SUPARCO) and the China Great Wall Industry Cooperation (CGWIC) signed an agreement for the development and launch of the ‘Pakistan Remote Sensing Satellite (PRSS-1) System’. Minister for Planning, Development and Reform, Ahsan Iqbal and CGWIC President, Yin Limping signed the agreement.

wheat output estimated at 25.413m tons ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

heat crop out in the country during current season was estimated at 25.413 million tons as against the set target of 26.463 million tons showing 4 percent reduction and about 2 percent decrease in crop sowing during the season. The decrease in the sowing area and wheat production was attributed to long prevailing dry spell as well as below normal average rain fall during the crop season, said Minister for National Food Security and Research Sikandar Hayat Khan Bosan. Addressing a press conference after chairing the meeting of the Federal Committee on Agriculture (FCA) will meet here to review the Rabi crops production and fix the targets for Kharif for the crop season 2018-19, he said that there was about one million tons of carry forward grain stocks with PASSCO and it was expected to that the wheat stock of over 26 million tons would be available for domestic consumption as well as to exports. The minister said that gram pulse production was estimated at 375.6 thousand tons as compared the set production targets of 617.5 thousand tons, where as lentil output was estimated at 6.6 thousand tons as against the fixed targets of 10.1 thousand tons.

import of iron, steel up 18% in 7 months ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

mport of iron and steel increased by 18.1 per cent during first seven months (JulFeb) of fiscal year 2017-18 as compared to same period of last year. The import of iron and steel rose to $1.56 billion in Jul-February (2017-18) from $1.3 billion in same period of preceding fiscal

year, according to latest data released by Pakistan Bureau of Statistics (PBS). Iron and steel scrap import also surged by 59.25 per cent as it rose to $1.03 billion in first seven months of current fiscal year from $650.13 million in July-February (2016-17). Similarly, import of gold during first seven months of current fiscal year increased by 27.81 per cent as compared to same period of previous year.

During the period under review, 326 kilogram of the yellow metal valuing US $13.18 million was imported against import of 278 kg gold worth $10.31 million last year. However, on yearly and monthly basis, the import of yellow metal in February 2018 plunged by 67.2 per cent and 72.2 per cent when compared to import during February 2017 and January 2018 respectively. The import during February 2018 de-

clined to $335,000 from $1.021 million in February 2017 and $1.2 million in January 2018. Similarly, the overall metal group import also increased by 27.43 per cent in July-February (2017-18) to $3.45 billion from $2.7 billion in same period of previous year. Aluminum wrought and work import also increased by 23.4 per cent from $121.18 million in JulyFebruary 2016-17 to $149.5 mil-

lion. On year-on-year basis, the overall metal group import in February rose by 14.33 per cent while on month-on-month basis the import went down by 15.6 per cent in February 2018 as compared to that of February 2017. The import of overall metal group was recorded $407.8 million in February 2018 while it was recorded $356.68 million and $483.14 million in February 2017 and January 2018 respectively.

www.customsbulletin.com

Business tax relief for South Australia CANBERRA: A bipartisan approach to cutting payroll tax in South Australia will make small businesses more competitive, Business SA says. Opposition Leader Peter Malinauskas has indicated Labor is willing to work with the Liberal government to eliminate payroll tax for companies with a wages bill of up to $1.5 million. “Lifting the payroll tax threshold is essential if we want to see South Australian businesses prosper and our state grow,” Business SA spokesman Anthony Penney said.“Increasing the threshold to $1.5 million would see South Australia no longer have the nation’s lowest rate at which it is introduced, which has meant the state has not been able to compete on a level playing field when trying to attract new business.”

pakistan & Russia equally important for each other: says Lcci chief

Friday April 13, 2018

Chambers

ecuador wants enhanced trade relations with pakistan

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

slamabad Women’s Chamber of Commerce and Industry (IWCCI) lauded the recently announced tax amnesty scheme saying that it will reduce the burden on the poor and the salaried class. However, it said, the FBR would have to work harder to meet the targets for which business community should not be harassed. Now the government should focus on the upcoming budget which should be business friendly and pro-growth, said Samina Fazil, founder President, IWCCI. She said that economic issues should be preferred over political matters in the budget while influential lobbies should be discouraged which have initiated eﬀorts to get un-

justified benefits. She said that increasing imports and decreasing exports have taken a toll on the economy pushing up the deficit to the unprecedented levels calling for immediate reforms which should not be ignored. The business leader demanded that the process of sending remittances should be made eﬃcient and economical to discourage illegal channels while the attention of investors should be diverted to the stock market. The property market is getting the undue attention of the investors while the stock market is not preferred despite the fact that its size has doubled during the current government but capitalization remains at a dismal level, she added. The withholding tax (WHT) on bank transactions has not gone down with the business community, therefore, it should be abolished or reduced to stop expansion in the black economy and bail out banks from the liquidity crunch, she demanded.

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

E German Alejandro Ortega Almeida, Ambassador of Ecuador visited Islamabad Chamber of Commerce & Industry to exchange views with business community for further enhancing bilateral trade and economic relations with Ecuador and Pakistan. Speaking at the occasion, he said that his country wanted to increase trade relations with Pakistan as both countries could do trade in many items. He said that Pakistan could achieve better access to South American markets by developing close cooperation with Ecuador. He said lack of direct contacts between the private sectors of Ecuador and Pakistan was the main reason of nominal trade between the two countries and stressed that both should focus on frequent exchange of trade delegations to explore new areas of mutual cooperation. He assured that his Embassy would fully cooperate with ICCI in bringing private sector of both countries closer that was important to improve two-way trade. In his wel-

come address, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that Pakistan considered Ecuador signiSicant to its growing demands of opening up new avenues of cooperation and investment opportunities for businessmen. He said that many sectors of Pakistan’s economy including infrastructure development, manufacturing, exploration of oil, gas and

minerals, energy, construction, information technology, engineering & automobiles offered great investment opportunities while the government has offered attractive incentives to foreign investors. He stressed that Ecuador’s investors should visit Pakistan to explore investment in areas of interest. He said that CPEC has create many new opportunities for investment and

icci urges to restore i-17 as industrial Sector ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Islamabad Chamber of Commerce & Industry has shown great concerns over the CDA Board’s recent approval for allocation of entire I-17 sector for setting up medical city as this sector was earmarked for development of an industrial estate in Islamabad and has called upon the CDA to restore I-17 as industrial sector in order to promote industrial activities in the region. Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that CDA had acquired 5000 kanals of land in I-17 for the development of industrial estate and had paid around Rs.7 billion for its acquisition while 3000 kanal more land was to be acquired in Noon Village for this proj-

ect. However, after making so much efforts and progress, de-notifying I17 as industrial sector and allocating it for medical city was not a wise decision as it has created disappointment in the prospective investors of the region. He said in 2009 CDA, ICCI, Economic Reforms Unit of Finance Division and National Industrial Parks Development and Management Company of Punjab had held meetings to develop a new industrial estate in I-17 and public-private partnership model was also considered to execute this project. He said the business community of the federal capital was looking towards CDA to announce the development of new industrial estate in I-17, but the recent decision of CDA Board has dashed all their hopes. Sheikh Amir Waheed said that setting up a medical city was a laudable step of the govern-

ment as it would provide better health care facilities to the general public. However, he said that I-17 was located at the border of Islamabad and it was more suitable for industrial estate. He urged that CDA should consider H-17 for medical city and restore I-17 as an industrial sector. Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI said that current industrial areas in Islamabad including I-9, I-10 and Kahuta Industrial Estate have almost saturated and if there were any plots available in these areas, their cost was so high that it was not affordable for potential investors. They said that these industrial estates have also been surrounded by the residential areas and in these circumstances, new industrial estate was badly needed in Islamabad for which I-17 was the best place.

JVs in Pakistan. Moreover 9 Special Economic Zones would be established in Pakistan under CPEC and stressed that it was the right time for investors of Ecuador to focus on Pakistan for business opportunities. He assured that ICCI would like to work with the Embassy of Ecuador for improving bilateral trade and economic relations between Pakistan and Ecuador.

LeSco facilitation Desk at Lcci opens ahore Electric Supply Company (LESCO) has established facilitation desk at the Lahore Chamber of Commerce & Industry that would work from 10 am to 2 pm to resolve the issues being faced by the business community. The LCCI President Malik Tahir Javaid and Chief Executive LESCO Mujahid Pervaiz Chattah inaugurated the facilitation desk in the presence of LCCI Senior Vice President Khawaja Khawar Rashid, Vice President Zeshan Khalil, Fahim-urRehman Saigol, Awais Saeed Piracha and other members. LESCO desk is an addition to the LCCI finest services for its members and it would cater to the needs of business community as already established desks of FBR, NADRA, SMEDA, Excise & Taxation and Traﬃc Police are doing. –CB Report

www.customsbulletin.com

Customs Intelligence impounds Hino truck FAISALABAD: The Customs Intelligence and Investigation has seized non duty paid Hino truck model 2000 bearing registration no:C-2961 Lower Dir worth Rs 8 million involving duty and taxes to the tune of Rs 2.9 million. Sources told Customs Today, Deputy Director Rana Irfan Shouqat received information about non duty paid vehicles and he formed special team comprising Superintendent Muhammad Tahir Iqbal and Intelligence Oﬃcers Mansoor Nasir, Irshad Ali, Muhammad Nasrullah and Hammad ul Hassan, Zeshan Farooq, Muhammad Shahbaz sepoy were also participated in the raid.

Friday, April 13, 2018

CUSTOMS BULLETIN

peshawar customs posts 22.04 percent comparative growth with Rs3097.75m profit PESHAWAR nADiR kHAn

www.customsbulletin.com

he last nine months’ collection performance of the Modal Custom Collectorate Peshawar was outstanding as, during the period, the house collected Rs16459.36million up to March 2018 against Rs13331.61million up to March 2017 with a difference of Rs3097.75million income while the difference in percentage was 22.04 percent. Under the head of custom duties, the Custom House Peshawar generated Rs6699.22million by March 2018 against Rs5049.89million of March 2017. The difference was recorded as Rs1649.33million while the difference in percentage was 32.66 percent. Under the head of Federal Excise Duty on palm oil, the house collected Rs1674.20million till March 2018 against Rs1291.82million in March 2017. The difference in rupees was recorded Rs382.38million while the difference in percentage was 29.60. Likewise under the head of Sale Tax Value Addition on commercial importers, the house earned Rs562.06million by March 2018

against Rs466million of March 2017. The difference in rupees was recorded Rs96.06million while the difference in percentage was 20.61.

Under the head of Federal Excise Duty, the house got Rs166.47million up to March 2018 against Rs131.59million of March 2017 with

a difference of Rs34.88million while the difference in percentage was 26.51. Under the head of withholding tax, the house collected Rs3434mil-

lion against Rs3230million in March 2017. The difference in rupees was Rs203.54million whereas a difference in percentage was 6.30.

cpec can help increase seafoods’ export beyond $1 billion ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ith the establishment of state of the art China Pakistan Economic Corridor (CPEC) infrastructure in Balochistan and Sindh provinces, Pakistan’s Sisheries sector export could cross $1 billion annually against current annual export of around $400 million. Pakistan’s exports of

Sishery products stand at about 0.25 per cent of world exports. Other than a huge domestic market Pakisnt has export market for Sish and Sish products and around 30 per cent of the total Sish catch is exported to 30 countries of the world, said a latest report titled “The state of economy: China Pakistan Economic Corridor Review and Analysis”, issued by The Shahid Javed Burki Institute of Public Policy at NtSol. According to the report, the Sisheries sector in Balochistan is the major source of employment for people residing along the coastal belt, this

includes Sishermen and other associated businesses such as boat building and net manufacturing. Other forms of employment in-

clude hawkers, vendors, store keepers, tourist guides, driver, etc. A problem associated with the expansion of the port due to CPEC is that

Published by M S Raza Oﬀ# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by (Ibne Hassan Oﬀset Printing Press, Shop No. 33 to 36 , Hockey Stadium, Karachi).

some Sishing zones would be dislocated- a serious concern of local people that their livelihood would be Sinished and forgotten. However the report warned that over exploitation of the marine Sisheries, especially shrimps, should be avoided to conserve the natural habitat. This is necessary for the commercial development of Sishing industry as it keeps open the investment opportunities in future. The report proposed to follow case of Thailand for developing a modern Sishery processing industry. In Balochistan’s coastal areas, fresh Sish is packed in ice and sent to Karachi.