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Karachi, Fri April 20, 2018

ISLAMABAD

M FAIZAN

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pecial Assistant to Prime Minister on Revenue and Federal Minister Haroon Akhtar Khan has said that the government will facilitate the farmers in coming budget. He also held a meeting with various stakeholders and associations working in the agriculture sector to discuss their propos-

als and recommendations for the upcoming budget. Federal Minister for National Food Security & Research Sikandar Hayat Khan Bosan and a team of senior ofSicers from his ministry also attended the meeting. Chairman Federal Board of Revenue Tariq Mahmood Pasha and senior ofSicers of FBR were also present on the occasion. Various proposals and recommendations were discussed for boosting the agricul-

Vol 3, Issue No. 10

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ture sector, as well as measures for facilitating the farmers and strengthening the domestic rural economy. Haroon Akhtar Khan said the agriculture sector was the backbone of the national economy. Strengthening agriculture and its allied sectors had been a key priority of the government which was committed to protecting the rights of the farmers and ensuring them better returns and prices on their farm yields.

Customs North Region earmarked a revenue collection target of Rs2999m

Customs Export retrieves Rs10.45m from two defaulter companies

Customs Intelligence impounds smuggled seeds, electronic items

DG Valuation Surriya to revise VR No 938/2016 on May 18

Multan Customs lodges FIR against owner of NDP vehicle

Customs North Region has been assigned a revenue target for the month | See pAge 02 |

Customs Export has said that we are investigating two defaulter companies | See pAge 03 |

Customs I&I has impounded containers carrying NDP seeds and electronics goods | See pAge 04 |

DG Valuation,has decided to revise the Valuation Ruling No: 938/2016 on May 18 | See pAge 09 |

CustomsI&PbranchhaslodgedFIRagainst suspect who is involved in smuggling | See pAge 16 |

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‘Illegal trade through LoC will not be allowed’ Friday, April 20, 2018

ISLAMABAD: The Pakistan Customs has vowed not to allow illegal trade of Indian goods under the grab of intra-Kashmir trade through Line of Control (LoC), as it would be detrimental for the country’s economy. Customs Anti-Smuggling Organisation’s focal person Additional Collector Muhammad Ashfaq, while talking to APP, said that intra-Kashmir trade through LoC was limited to duty-free barter system for exchange goods of Occupied Kashmir and Azad Kashmir.

Islamabad

customs North region earmarked a revenue collection target of rs2999m

ISLAMABAD

cuStoMS BuLLetIN report

tArIQ DerYA

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he National Accountability Bureau (NAB) Rawalpindi has arrested Dawood Khalid owners/partners of Suzuki Chaudhry Motors Rawalpindi/Islamabad. The accused persons are allegedly involved in cheating public at large by receiving a huge amount of money from the general public in the name of showroom-pool investment for profit on a monthly-basis. The accused persons have reportedly embezzled an amount of Rs86.694 million. In another case, NAB Rawalpindi Sub-Office Gilgit has filed a reference in Accountability Court Gilgit-Baltistan, Gilgit against the officers/officials of Forest Department. As per detail, accused Muhammad Ismail Zafar ex-conservator Gilgit, Saleem Ullah Khan Divisional Forest Officer Astore, Qadar Dan ex-Range Forest Officer Forest Department, Maskeen Faqeer, Forest Lessee and Riaz Hakeem, Forest Lessee on the allegation of transportation of illegal cut timber from Minar Forest (C-10) and Makhley Forest (C-46) in violation of Timber Disposal Policy 2013 that resulted in a loss of more than Rs113 million to the national exchequer.

he Customs North Region has been assigned a revenue target for the month of April FY17-18 with an amount of Rs2999million under all the heads, correspondent of Customs Today learnt. According to details explained by official sources of thre North Region, comprising Model Customs Collectorates (MCC) Islamabad, Peshawar, Sialkot and Gilgit-Baltista, that the North MCC Islamabad has been allocated Rs1281.83million under the head of all duties and taxes for the month of April FY17-18. The MCC Peshawar has been assigned an amount of Rs1709.90million of all duties and taxes for the month of April FY17-18 while MCC Sialkot has been allocated Rs37.53million under the same head for the same period as well as the MCC Gilgit-Baltistan has been earmarked an amount of Rs44.89million under the head of all taxes for the month of April FY17-18. The North Region has been assigned Rs1206.02million as Customs Duty (CD) for April FY17-18 whereas the North earmarked Rs1140.19million revenue target under the head of Sales Tax (ST) for April as well as the North Region has been allocated Rs32.78million of Federal Excise Duty (FED) while the North Region

‘tax registration made compulsory for property investors’

assigned Rs620.10million as Income Tax (IT) for April FY17-18. The sources notiSied CT that the North Region was assigned Rs2834.72million revenue target for the month of March FY17-18 whereas it was assigned Rs2437.28million under the head of all taxes for the month of February FY17-18 as well as the North was earmarked Rs2874.65million of all taxes for January FY17-18. Meanwhile, The Customs North Region faced a shortfall of Rs399mil-

lion against an assigned revenue target of Customs Duty during a third quarter (January to March) FY17-18. According to details given by sources of the Chief Collector OfSice of the North Region Islamabad, comprising Model Customs Collectorates of Islamabad, Peshawar, Sambrial and Gilgit-Baltistan, noted that, during third-Q, the North Region earned Rs2578.88million under the head of Customs Duty (CD) against an allocated revenue collection target of

Rs2978.67million. The sources told CT that the Customs North generated a surplus revenue as CD against an earmarked target for the month of March FY17-18. It was added that the North Region received Rs1046.98million against an assigned revenue target of Rs959.77million under the head of CD for the month of March FY17-18. The North Region collected an extra revenue with an amount of Rs87.21million of CD against an allocated revenue collection target.

Ihc orders parties concerned to submit records against cAt, AtIr

ISLAMABAD

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he Islamabad High Court on directed the parties to submit records of the cases while hearing four customs matters Siled against the Customs Appellate Tribunal and Appellate Tribunal Inland Revenue. A citizen, M Anwar Khan, had Siled four customs references against the Customs Appellate Tribunal and Appellate Tribunal Inland

Revenue. The IHC Division Bench, comprising of Justice Aamer Farooq and Justice Mohsin Akhtar Kiyani, was hearing the matters. Meanwhile, another bench also dated in ofSice hearing on the cases submitted by the M/s Pakistan Tobacco Company Limited. The bench also heard another tax matter Siled by the M/s Pakistan Tobacco Company Limited. The appellant had challenged a show cause notice issued by the Large Taxpayers Unit Islamabad. The M/s Pakistan To-

bacco Company Limited had contested the show cause notices is-

sued by the Sield ofSices of the Federal Board of Revenue. The M/s Pak-

istan Tobacco Company Limited had challenged the recovery of outstanding sales tax by the LTU Islamabad. The M/s Pakistan Tobacco Company Limited had submitted that the department had issued the demand for the tax year 2010 under the head of sales tax. The Federal Board of Revenue (FBR), ofSicers of the LTU including Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and Appellate Tribunal Inland Revenue (ATIR), were made respondents in the case.

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Customs Court convicts suspect involved in HSD oil smuggling case KARACHI: The Customs Taxation and Anti-Smuggling Court Judge Syed Faiz Rasool Rashdi awarded 15 days imprisonment to suspect namely Muhammad Zamreen son of Mehmood Shah on plead guilty, who is owner of oil tanker bearing registration number JP-9950, and booked in a case of attempting to smuggle non-duty paid 25,000 liters Iranian HSD Oil. During the hearing, the above mentioned suspect appeared before the court along with his counsel who moved petition for plead guilty and left himself on the mercy of court.

Final notice compels Areeba Digital Frame works to pay arrears of rs8.69m

Friday April 20, 2018

Karachi

customs export retrieves rs10.45m from two defaulter companies

KARACHI

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he Customs Adjudication-I received Rs8.69million in response to a final notice served on a defaulter company named M/s Areeba Digital Frame Works. The adjudication has also issued a show cause notice to the M/s Al Warsa Marble Karachi on the charge of mis-declaration/description. The M/s Areeba Digital Frame Works was allegedly involved in a tax evasion. The company imported a consignment of Digital frames and laminated papers in the month of January 2017 which was examined through Shamim Akhter who used the wrong PCT heading.

citizen moves Shc, seeks release of passenger bus KARACHI

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he Sindh High Court (SHC) has issued notices to the Customs Department and deputy attorney general on a constitutional petition filed by Chakar Khan, seeking release of his passenger bus seized by customs authorities due to alleged involvement in smuggling of high speed diesel. While hearing of the petition, a two-member bench, headed by Justice Munib Akhtar, also directed them to file their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner stated that the petitioner was the owner of passenger bus bearing registration no: BSA-586 and had never been involved in any criminal case, however, officials of the Customs Department intercepted the same and seized it illegally.

KARACHI

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ollector Customs Export Saqif Saeed has said that we are investigating two defaulter companies namely Fari Associates and Muneeb Auto Parts again. The collector said these companies exported some consignments seven months ago. Before sending notices to them, the collector export will check documents and send them show cause notices. On the other hand, Customs Export has served show cause notices on two defaulter companies and recovered evaded amount of taxes and duties of Rs10.45million. Sources told Customs Today that, during a scrutiny of the import data, it was revealed that M/s Naveed Pana Makers availed undue beneSits and concessions after importing different consignments of various tool sets by misusing the SRO 560 through Examiner Saleem Aiwan on December 5, 2017. Sources said that the company was allegedly involved in the tax evasion of Rs6million. After detecting the tax evasion, the Customs Export served on it a Sinal notice on March 22, 2018 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s Naveed Pana Makers deposited the evaded amount into the ofSicial account of the Customs Export on 9th of April, 2018. On the other hand, the management

of the M/s Uzair Studio also cleared Rs4.45million of taxes and duties. Sources told CT that the M/s Uzair Studio also availed undue beneSits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities served on it a Sinal notice on March 24, 2018. After receiving the notice, the management of the M/s Uzair Studio deposited the evaded amount of taxes into the ofSicial account. Meanwhile, The Customs Ex-

M/s Naveed pana Makers availed undue benefits and concessions after importing diďŹ&#x20AC;erent consignments of various tool sets by misusing the Sro 560 through examiner Saleem Aiwan

regulatory duty on varnish, polyester challenged in Shc

KARACHI

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rown Winding Wire Industries has moved a constitutional petition in the Sindh High Court (SHC), challenging imposition of regularity duty on varnish, including polyester, polyamide (wire general varnish) under Valuation Ruling no 1035(1)/2017 dated October, 16, 2017. Counsel for the petitioner stated that it is engaged in the law-

ful import of varnish, including polyester/ polyamide (wire general varnish) and fulSills all the liabilities in accordance with law. However, the petitioner deems imposition of regularity duty on import of goods vide SRO 1035(1)/2017 dated Oct, 16, 2017 unlawful. The counsel argued that petitioner has no other remedy but to prefer the titled constitutional petition, challenging inter alia, imposition of the regularity duty. Citing Chairman Federal Board of Revenue, Secretary Revenue Divi-

sion, Collector Customs Collectorate Appraisement West, Collector of Customs Collectorate Appraisement East and Collector of Customs Collectorate Appraisement Port Muhammad Bin Qasim as respondents, importer pleaded the court to declare that act of the respondents as illegal, mala Side and arbitrary. He also pleaded the court may set aside impugned valuation ruling and restrain them from taking any coercive action against the petitioner till Sinal order in this petition.

port has recovered Rs57.86million during the past 15 days as the method of sending notices to defaulter companies continues. The Customs Export has recovered an evaded amount of taxes and duties of Rs17.81million from defaulter companies which were earlier issued with notices to pay the arrears. Sources told Customs Today that, during a scrutiny of the import data, it was revealed that M/s Akram Cutters and Marble Accessories.

pak rupee recovers in open market he Pakistani rupee on made recovery against the US currency in open market and remained unchanged in interbank. As per the local money market, the greenback lost five paisas in open market for buying at 116.60 and for selling at 117.40. The dollar remained firm in interbank for buying at 115.50 and for selling at 115.70.

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Traders for using solar energy to overcome power crisis Friday April 20, 2018

Lahore

ISLAMABAD: Pakistan has huge potential to generate thousands megawatts of electricity through solar energy which is clean, environmental friendly and cost effective and government should pay more attention towards solar energy that would help in resolving energy crisis and reducing cost of doing business. This was said by President, Islamabad Chamber of Commerce and Industry (ICCI) Sheikh Amir Waheed, while talking to a delegation of Vehari Chamber of Commerce and Industry that visited ICCI led by its President Khalid Mahmood.

Fto seeks relevant customs Intelligence impounds record of appeal filed by smuggled seeds, electronic items owner of ice factory LAHORE

LAHORE

SAJID NAwAZ

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he Federal Tax Ombudsman (FTO) has sought relevant record from parties in an appeal Siled by proprietor of M/s Javaid Ice Factory against the Regional Tax OfSice (RTO-II) Lahore. During the proceedings of the case, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant for the last two years. He said the RTO-II collected excessive taxes from the company during the last two years. The petitioner approached the ofSicials concerned several times for the release of refunds, but the RTO ofSicials failed to clear refunds after the passage of a reasonable time.

FBr recovers rs3.5m from rahat Fateh Ali ederal Board of Revenue (FBR) has recovered Rs 3.5 million from renowned singer Rahat Fateh Ali Khan. FBR also has started collection of details of property of singer. As per details, Federal Board of Revenue has collected all tax liability of Rs 3.5 million from singer Rahat Fateh Ali Khan. The tax has been collected in different dates but now all liability paid by the singer Rahat. It is necessary to mention here that“famous singer Rahat Fateh Ali Khan.is name in documents as Rahat Ali Khan, source told” Earlier, the Federal Board of Revenue (FBR) was freeze bank accounts of singer Rahat Fateh Ali Khan over alleged tax evasion. According to FBR, non-payment of income tax worth more than Rs3.5 million in 2015 led the Federal Board of Revenue to seize the singer’s available bank accounts in the country. –CB Report

Finally, the appellant decided to approach the FTO, seeking intervention in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims at the earliest. The counsel further said that delay in release of refunds put burden on taxpayers, adding that the RTO-II should make audit of the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO-II argued that the appellant has not submitted all record to the office for claiming refunds. If appellant provides the accurate record, the RTO-II will release refunds after a proper assessment, he added. After hearing the arguments from both sides, advisor for FTO Mian Munawar Ghafoor has ordered to the relevant zone of Regional Tax Office-II to produce relevant documents on the next date of hearing to conclude the case.

M hAYAt

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he Customs Investigation and Intelligence (I&I) has impounded containers carrying smuggled seeds and electronics goods worth millions of rupees from Shera Kot and Multan Road. Sources told Customs Today that Customs teams conSiscated containers loaded with electronics goods and seeds from different places. The sources said that Kangni seeds were brought into the country under the Afghan Transit Trade while the electronics items were hidden in a hardware items carrier (truck). The sources said that the total value of the containers was estimated at Rs 5 million The team that successfully conducted the raids included Deputy director Usman Tariq, while others including ZulSiqar, Ali

govt to approve 6.2 percent gDp growth target for next year

s the federal cabinet’s approval of the Budget Strategy Paper remains pending, the government is set to approve next Siscal year’s macroeconomic framework, which envisages 6.2% economic growth rate and 6% inSlation targets. The Annual Plan Coordination Committee (APCC) will approve Siscal year 2018-19’s macroeconomic framework and federal Public Sector Development Programme Historically, APCC meetings have been held after the approval of the

Budget Strategy Paper from the federal cabinet. However, this year, the government has convened the APCC meeting without Sirst securing the cabinet’s approval of the budget strategy paper, which has denied the federal ministers the right to give their input. After the APCC’s approval, the National Economic Council is the Sinal authority to approve the macroeconomic framework. The NEC is headed by the country’s prime minister and the provincial chief ministers are its members. –CB Report

Sohail Murtaza and other were part of the team. The sources said that the Customs I&I started to initiate crackdowns in the city to curtail smuggling. Meanwhile, Directorate of Customs Intelligence and Investigation (I&I) team impounded three non duty paid vehicles from different parts of the city. Sources told Customs Today that Director Customs Intelligence and Investigations

Rubab Sikandar received credible information that some non duty paid vehicles plying on roads which may be used for transportation of smuggled goods. She immediately constituted a team under the supervision of Superintendent Saleemullah Khan which also includes Intelligence OfSicer ZulSiqar Ali Dogar, Agha Sultan Haider, Sohail Murtaza and Hamid Babar.

NAB arrests 226 persons in six months ational Accountability Bureau (NAB) has arrested 226 accused in different cases and 27 accused were convicted by accountability courts during last six months. The Bureau also authorized 55 complaint veriSication, 39 inquiries and 33 investigations during the period. In a statement issued here, Chairman NAB, Justice (Retd) Javed Iqbal said Bureau’s proactive Anti Corruption strategy has proved very successful in last six months after assumption of his responsibilities as Chairman. He said NAB has practically proved

with its actions against corrupt across the board without any pressure and favoritism. The Bureau has Siled 197 corruption references in Accountability Courts in six months which is a record achievement, he said and added “Investigation of mega and white collar crimes is very difSicult and it takes years by years but when aim, mission and vision will be clear, everything is possible.” The Chairman said number of complaints have been increased as compared to same period of last year from Oct 11, 2017 to April 15, 2018. –CB Report

tax refund appeal put forward for further hearing

LAHORE

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he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Siled by Ramzan Khan, a resident of Bhakhar, against the Regional Tax OfSice (RTO) Sargodha until the next hearing. FTO Advisor Haji Ahmed heard

the case in which the counsel for the appellant argued that the RTO Sargodha has not released the refund to the appellant of the last two years. He said that the RTO Sargodha collected excessive tax from the appellant during the last two years. The company approached the officer concerned many times for issuance of the refunds but the department did not pay the refunds

after the passage of a reasonable time. Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO), seeking interference in this case. The counsel appealed the FTO advisor to direct the commissioner of RTO Sargodha to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the

RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. On the other hand, counsel for the RTO argued that the appellant has not submitted all record in the office on basis of which it is claiming for refunds. If appellant provides accurate record, the RTO will issue the refunds if any after proper assessment, he added.

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ISLAMABAD

M ArShAD

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he Federal Board of Revenue (FBR) eyes positive productive outcomes of tax amnesty scheme on account of repatriation of assets of Pakistanis from abroad. Due procedure for the repatriation of funds from abroad will result in the accumulative tax revenue on the bank transactions. Transfer of funds through proper banking channels result in tax collection by the FBR. All remittances less than $100,000 per year per person will continue without any questions from any agency about the source of funds and enjoy tax exemption; all remittances greater than that amount will enjoy tax exemption but may be scrutinized by the Federal Board of Revenue. On the 5th of this month, Prime Minister Shahid Khaqan Abbasi introduced the tax amnesty scheme through which people with

undeclared income earned before June 30, 2017 on assets within the country would be able to bring them in the tax net by simply paying a Sive per cent penalty. A source of special advisor on revenue told Customs Today that repatriation of at least Sive or six billion dollar from Pakistanis holding billions of dollars abroad

was expected. This repatriation of funds is because of changed and almost tightened Sinancial security measures across the globe. These measures have made it difSicult for Pakistanis to hold funds abroad without clear cut justiSication. The source said that the repatriation of amount of expected funds would play immense role in the economic revival of the country by increasing tune of country’s forex reserves as well as to bridge trade deSicit and current account deSicit. “Pakistan received an extended funds facility (EFF) from the International Monetary Fund (IMF) worth $ 6.25 billion some four years back; therefore, addition of Sive to six billion dollars to national economy will make a lot of difference for the smooth functioning of economy” the source added. Thus, the 0 00 $100, source said that tax amnesty n a h t e ess l u s n scheme would play key role in i e t c n co ittan n will the productive role in the ecoo s y A l l re m r n e er p om a p r f r nomic uplift by repatriating s a n e io per y s and quest funds from the abroad. f fund t any

u s u rc e o witho the so ttance t u o b l re m i a l a y ; c n n oy tio age ill enj w xemp e t n x u a t o at am e n j oy y be han th t r ut ma e t b n o i g re a t emp FBr t a x ex by t h e d e z i n scruti

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Friday, April 20 2018

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Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDItorIAL

record burden of loans

ccording to newspaper reports, the next government will have to borrow $13 billion during the fiscal year 2018-19, to repay previously obtained loans and stabilize the foreign currency reserves. The estimated foreign borrowing will be nearly 63 percent more than the outgoing fiscal year’s original estimates and the highest in the history of the country. The former finance minister had presented a foreign borrowing plan of $8 billion in parliament for the outgoing fiscal year, but the government already borrowed $7.3 billion in eight months and took the total foreign loans of $10.4 billion in fiscal year 2016-17. The government is going to unveil provisional estimate on April 27 to borrow $13 billion for 2018-19 but will not seek another bailout package from the International Monetary Fund. The constant inflow of remittances sent by the expatriate Pakistanis have propped up the foreign exchange reserves and health of the economy to some extent, but the outgoing government has failed to ensure comfortable inflow of foreign direct investment. As was expected, the debt servicing is appearing as the biggest challenge for the coming government. If the government avoids seeking a bailout package from the IMF, it will be a good service to the nation. But relying heavily on foreign loans is also not a good idea, specifically for Pakistan where political instability is keeping the potential investors away from the promising projects. The government of the Pakistan Muslim League-Nawaz has already obtained $40 billion in foreign loans during its first four and a half years, creating Pakistan a heavily debt economy in the region. The fund has already projected that Pakistan’s external debt and liabilities will be close to $93.2 billion by June this year. The total debt and liabilities on the nation were nearly $61 billion when the PML-N took over in 2013. Experts believe the government will add more than $45 billion to the borrowing basket of the country. Unfortunately, the policymakers have left no international institution from where they have not received loans. Still experts expect the next government would seek an estimated $4.7 billion from three multilateral donor agencies, the World Bank, the Asian Development Bank and the Islamic Development Bank.

Budget without cSF A

LAHORE

Dr AFtAB AFZAL

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ccording to newspaper reports, the government has decided to exclude the receipts of the US Coalition Support Fund from the federal budget for 2018-19, clearly pointing a fact that there is little chance of improvement in relations between Pakistan and the United States in the near future. The Coalition Support Fund remained integral part of the budget estimates during the last 16 years, but the bilateral relations gradually deteriorated over the years due to unending war in Afghanistan. However, a tweet of US President Donald

Trump proved the last nail in the cofSin of the relations when he began his new year by launching an anti-Pakistan tirade. He accused Pakistan of providing nothing but ‘lies and deceit’ and that Washington had foolishly given Pakistan billions of dollars in aid over the last 15 years. He also accused Pakistan of giving ‘safe haven to the terrorists’ Sighting US forces in Afghanistan. According to the statistics compiled by US authorities, the total aid for reimbursements to Pakistan was $33.4 billion, including $14.573 billion which were sanctioned under the CSF. By excluding the $14.5 billion under the cost of logistics and aerial support, the

civilian and security aid granted to Pakistan from 2002 to 2016 was $18.8 billion. Against the grant of $33 billion, Pakistan incurred 50,000 citizens and over $100 billion monetary losses during the so-called war on terror. However, Pakistan is at the same situation as it was in 2002 when it decided to side with the United States. As a partner of the regional war, which had international repercussions, Pakistan not only incurred Sinancial but economic losses which will take years to recover. The economy suffered heavily during the years and in return, the country bagged nothing but diatribes, accusations and insults. This happened purely due to ill-

planned policies of the successive governments in the country. The United States still uses Pakistani airspace, airports, and highways for logistic supplies to Afghanistan. Instead of extending a note of thanks, it is blaming Pakistan for its failures on the war fronts. It is the time the Pakistani policymakers should call spade a spade and tell the new US administration it means business. There is no need to take funds, but it is the right of Islamabad to charge the United States for using its land and air routes. The economy of Pakistan remained in dire strain and stronger trade relations are the answer to remove trust deSicit between the two countries.

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SHC calls comments on petition, seeking restoration of sales tax registration KARACHI: The Sindh High Court (SHC) has directed the Pakistan Customs to file their respective para wise comments on a constitutional petition filed by M/s A.I International, seeking restoration of its sales tax registration number blocked by Commissioner Inland Revenue Unit-5, Zone-VI, Corporate Regional Tax Office Karachi due to the alleged non-compliance of section 73 of Sales Tax Act, 1990. A two-member bench, headed by Justice Munib Akhtar, was hearing the petition. Earlier, counsel for the petitioner argued that petitioner is registered as importer and exporter of textile goods and doing lawful business and has never been involved in any criminal case.

court sends suspect to lock-up on physical remand booked in wine smuggling KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi sent an accused Ashok P. Jethmilani S/o Jethmilani to customs lack-up on physical remand who was arrested after the rejection of a bail application. He was booked in a case of attempt to smuggle non-duty-paid 5844 win bottles. After the hearing, the court granted his physical remand and directed the investigation oﬃcer to produce him on the next date of hearing along with a progress report. It needs to be pertained here that, on the last date of hearing, the suspect had appeared before the court and moved a bail application. The counsel argued that the applicant has falsely been implicated by the agency in the case. He further argued that there is no evidence available on record against the applicant neither he had the connivance nor had

Friday April 20, 2018

National

Dg Valuation Surriya to revise Vr No 938/2016 on May 18 T

KARACHI

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he Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 938/2016 on May 18, 2018, it is learnt. According to details, Surriya Butt has said that the department was reviewing suggestions from various importers to set new prices of chemicals. She said some valuations which were issued in 2016 were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international market. Sources said that a petition was filed with the Customs Valuation in which change in prices of chemicals was requested. Sources said that Valuation Ruling No: 938/2016 was issued on September 26, 2016. A meeting was held with the stakeholders on April 9, 2018. Importers were advised 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 items in

question through which the actual current value could be ascertained. Meanwhile, The Directorate General of Customs Valuation has revised the customs value of galvanized iron and steel ceiling suspension system/tee-grid vide Valuation Ruling No 1281/2018 under Section 25-A of the Customs Act,

1969. Earlier the customs value of Galvanized Iron and Steel Ceiling Suspension System/Tee-Grid was determined under Section 25-A of Customs Act, 1969 vide Valuation Ruling No. 1120/2017 dated 06.04.2017. However, it needed revision to reSlect the current price trend prevailing in international

market. This prompted an exercise to re-determine the Custom values of the subject goods under Section 25-A of the Customs Act, 1969. Meeting \\ ith stakeholders was held on 03.04.2018. The participants were requested to submit invoice of Imports made during last three months showing factual value.

‘FBr taking action against sale of NDp cigarettes’ ISLAMABAD

any knowledge about the alleged offence and seized goods were replaced by the watch and ward of warehouse therefore court may grant him bail. However Ashiq Ali Anwar Rana, Special Prosecutor for the Customs Department, argued that the applicant is deeply involved in illegally and fraudulently removal/replacement of items as alleged in the charge sheet therefore bail application may be rejected. The court rejected the bail and observed that a specific role has been attributed to the applicant/ accused being owner of warehouse and he is fully responsible for removal of the goods in question from the warehouse.

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pecial Assistant to Prime Minister on Revenue Haroon Akhtar Khan has said that the Federal Board of Revenue (FBR) is taking strict enforcement action against the sale of non-duty paid or illegal tobacco/cigarettes without any discrimination across the country. Speaking at a pre-budget seminar organized by the Federation of Chamber of Commerce and Industry (FPCCI), Haroon Akhtar said it is unfortunate that around 27 percent of the non-duty paid cigarettes are being sold in the country. He said the entire cigarette industry can fully utilize the beneSits of third tier (revised Federal Excise Duty structure) on cigarettes without any discrimination as both the

multinational cigarette manufacturing companies and domestic manufacturers can equally avail beneSits of third tier (3rd slab of excise duty on cigarettes). “We are not giving any special treatment or favour to the multinational cigarette manufacturing companies as the beneSit of third tier (third Federal Excise Duty slab) on cigarettes are also being availed by the local cigarette manufacturing units. The facility is available to both of the multinational industry and the domestic manufactures without any discriminatory treatment,” he said. It is unfortunate that some of the illegal local units are selling cigarette pack even as low as Rs 25 per pack which is much less than the minimum retail price of Rs 48 per pack. FBR Chairman Tariq Pasha informed the meeting that the FBR is not creating any problems for the

local documented industry or manufacturers operating legally and paying their dues taxes in the national kitty. “We are only against the illegal units which are evading taxes and making their compliant counterparts uncompetitive and ineffective. The FBR would continue with the policy of inspections and raids against the illegal units involved in tax evasion and causing massive loss to the national exchequer. The FBR will not spare tax evaders in cigarette industry but the same time fully facilitate the taxpaying complaint cigarette manufacturing units.” For the Sirst time in the history of budget, the FBR has patiently listened to the budget proposals and issues of the local cigarette industry thrice. These meetings between the local industry and FBR were held in the friendly atmosphere. We welcome the legal and documented in-

dustry to come and present their proposals. If any compliant unit has grievances or issues, he is welcome to meet tax authorities at the FBR house, but we have no place for illegal tobacco industry, which is evading taxes and causing huge loss to the national kitty. Meanwhile, Special Assistant to Prime Minister on Revenue, Haroon Akhtar Khan has said the recent tax amnesty scheme is different from the schemes announced earlier and it will pave the way for rapid national development. While speaking at a pre-budget meeting at Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Haroon Akhtar Khan said that the scheme has been announced by keeping ground realities, economic problems, international laws and prevailing environment, therefore, criticism is unwarranted.

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Human traﬃcker arrested Friday April 20, 2018

National customs Appellate tribunal hears 18 cases

FAISALABAD: The Federal Investigation Agency (FIA) Faisalabad arrested an alleged human trafficker, Naeem Shuja, from Kutchery Bazaar. According to FIA spokesman, a team conducted raid at Sadique Plaza Office No 1 on getting information that some agents were receiving passports and money in an insurance company office from the people on the pretext of sending them abroad. During the raid, the team recovered 152 passports, birth certificates, medical certificates and police character certificates from the possession of accused Naeem Shuja son of Shuja Din resident of Hajweri Town Faisalabad.

Islamabad customs takes NDp & oﬀending vehicles & items into possession

ISLAMABAD

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ISLAMABAD

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he single and double benches of the Customs Appellate Tribunal heard 18 cases on Wednesday and reserved verdicts on three cases after counsels concluded their arguments. The Division Bench-I, comprising Muhammad Shabbir Gujjar, Member Judicial and Imran Tariq, Member Technical, heard eight appeals including Naveed Cargo versus Collector Customs Lahore, Malik and Sons versus Collector Customs Lahore, Oversight Private versus Collector Customs Lahore, Collector Customs Lahore versus Muhammad Altaf Khan, Collector Customs Lahore versus Khursheed, Syed Irfan Ali versus Collector Customs Lahore and Muhammad Arshed Butt versus Collector Customs Lahore. The Bench-I, Member Technical Saud Imran, heard two appeals including Ghulam Shabbir Ahmed versus Collector Customs Anti-Smuggling Organization (ASO) Multan and Raja Muhammad Mushtaq versus Collector Customs ASO Lahore.

FIA detains three human traffickers ederal Investigation Agency (FIA) arrested three human traffickers during a raid. The FIA spokesman said that on public complaints, an operation was conducted against the human traffickers in the provincial capital. He said that three human traffickers named Shabbir, Ghulam Nabbi and Tahir Muneeb – allegedly involved in sending people abroad through illegal means by accepting a huge sum of money – were arrested during the operation. The passports and other documents were also recovered from the possession of the arrested human traffickers. The accused were interrogated after registration of cases against them at the concerned FIA police station. –CB Report

he Anti-Smuggling Organization (ASO) Islamabad impounded NDP and offending vehicles and imported smuggled goods worth Rs65.73million during the month of March FY17-18. According to details given by sources of the Model Customs Collectorate Islamabad that, during the month of March FY17-18, the ASO Islamabad took into possession four Non-Duty-Paid vehicles priced at Rs6.5million whereas it did 31offending vehicles (vehicles used for carrying smuggled goods) valued at Rs29.900million. The sources told CT that, during above said duration, the ASO

Islamabad seized 7454 yards of cloth worth Rs4.027million while

did 1200 kilogram of food grain priced at Rs0.390million as well it

confiscated 1224 kilogram of black tea valued at Rs0.201million. The ASO impounded 170 tyres and tubes priced at Rs1.92million. The ASO further seized 733 alloy rims valued at Rs1.263million whereas it did 17 kilogram of auto parts priced at Rs00.51million as well as the ASO confiscated 1360 electronic items priced at Rs3.73million. The ASO seized various miscellaneous foreign origin smuggled goods worth Rs17.74million during the month of March FY17-18. Sources told CT that the ASO Islamabad took into possession 187 offending and NDP vehicles along with various kinds of imported smuggled goods valued at Rs315million during first nine months (July to March) FY17-18.

customs Appraisement east earns rs5093.41m of revenue during 16 days T

KARACHI

wAQAr ANSArI

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he Customs Collectorate, Appraisement East, has generated Rs5093.41million of customs duty, sales tax, income tax and federal exercise duty during Sirst 16 days of April 2018. Sources told Customs Today that the Customs Appraisement East received Rs3047million as customs duty, Rs1147million of sales tax, Rs883million as income tax and Rs16.41million under the head of federal excise duty during first 16 days of April. If we talk about 10 days of April, the Customs Collectorate, Appraisement East collected Rs4321 million of customs duty, sales tax, income tax and federal exercise duty including receiving of Rs 2478 million as customs duty, Rs 845 million of sales tax, Rs714 million as

income tax and Rs14.25 million under the head of federal excise duty during 10 days of April. In the whole month of March, the Customs Collectorate, Appraise-

ment East, generated total Rs39 billion under the heads of customs duty, sales tax, income tax and federal exercise duty including Rs14.225 billion under the

head of customs duty, Rs18.835 billion under the head of sales tax and Rs 5.114 billion under the head of income tax and Rs83 million of FED.

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Valuation Ruling No: 982/2016 poised to be revised by Surriya Butt on May 3 KARACHI: The Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 982/2016 on May 3, 2018, it is learnt. Surriya Butt said the department is reviewing suggestions from various importers to set the new prices of chandeliers, pendants and other hanging lights and parts. She said 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 market. Sources told Customs Today that a petition was filed with the Customs Valuation in which change in prices of chandeliers, pendants and other hanging lights and parts was requested.

cpec, better law & order bring expansion in hotel, aviation industries KARACHI

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fter restoration of law and order in the country, especially in Karachi, and with commencement of CPEC, hotel and aviation industries have boomed in the country. Different hotel chains including Avari International Hotels and different airlines have started expanding their facilities and operations.Speaking to a group of journalists on Sunday evening at the concluding ceremony of elevenday Thailand food festival held at Beach Luxury Hotel, General Manager of BLH, M. Azeem Qureshi said that with increasing rush of visitors from different countries for business and tourism purposes, the existing hotel capacity fell short. It has become in-

evitable for the hotel chains operating in the country to go for immediate expansion. “After China-Pakistan Economic Corridor, hotel industry here has witnessed 40 percent increase in occupancy. One would hardly find a vacant room in four-star and five-star hotels in Pakistan,” he said. He said Avari International Hotels Group has taken lead by starting construction of nine more hotels with new name “Avari Express Hotels”. Among these, two would be set up in Lahore, two in Multan (one is ready), one each at Faizabad (junction of Rawalpindi and Islamabad), Faisalabad, Gujranwala, Koh-e-Mari and Sialkot. Avari Group was mainly focusing on Punjab, he said adding that the group was pursuing “Second City Concept”. Gwadar was also on cards, he said. He said the expansion in hotel and aviation industries reflected boom in economic activities in the country.

National

Miftah says non-taxpayers won’t be allowed to purchase plot after July

Appraisement east collects rs4321m of revenue during 10 days of April KARACHI

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he Customs Collectorate, Appraisement East, has earned Rs4321million of customs duty, sales tax, income tax and federal exercise duty during first 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 first 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 first 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, Appraisement East, has generated total Rs39billion, Rs120million under the heads of customs duty, sales tax, income tax and federal exercise duty including Rs14billion and Rs225million under the head of custom duty, Rs18billion.

ISLAMABAD

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dvisor to Prime Minister on Finance Miftah Ismail on Thursday stated that non-tax payers will not be allowed to purchase land in the country after July this year, reported Radio Pakistan. While talking to a private news channel, he stated that the working middle class will be facilitated with the Economic Reforms Package which will even help widen the tax net in the country. “The tax amnesty scheme has been announced to bring more people in tax ambit especially the upper class of the country which was evading taxes,” Ismail said as he shed light on the amnesty scheme. On Wednesday, the opposition’s censure of the government’s move to issue three ordinances offering tax amnesty was so severe that it adjourned the proceedings of the lower house of parliament on to stem further criticism. The legislation was introduced as presidential ordinances on April 8. Terming the move illogical, Pakistan Peoples Party lawmaker Naveed Qamar questioned the need for passing the ordinances

Friday April 20, 2018

just 15 days before the announcement of the budget. Consequences of the amnesty scheme would be faced by the caretaker and the next elected government, he insisted. He said that such an amnesty was conceptually wrong and amounted to strangulating the next elected government. Meanwhile, Adviser to Prime Minister on Finance, Revenue and Economic Affairs Dr Miftah Ismail has said that people have to get registered with tax authorities for pur-

chasing immovable properties. For purchasing property citizens would have to make tax registration, he said while talking to a private news channel. He said that all efforts were being made to expand tax network and check tax evaders in the country. He said that modern technology would help bring more people into tax net. There were 700,000 Silers paying tax along with returns in the country and that the Sigure would be increased through using modern technology, he said.

FBr approves Audit policy for 2017

ISLAMABAD

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he Federal Board of Revenue (FBR) has approved the Audit Policy for 2017 pertaining to Tax Year 2016. Criteria for selection of cases (for all taxes) for TY 2016 would be parametric. It has been decided by the Board that in order to provide ease and facilitate the taxpayers case of a taxpayer once selected for audit though ballot shall not be selected for audit for next (consecutive) two tax years under section 214C of the Income Tax Ordinance 2001, under section 72B of the Sales Tax Act 1990 and 42B of

the Federal Excise Act 2005 respectively. For such purposes base year would be TY 2015 for Income Tax & Tax Periods July 2014 to June 2015 for Sales Tax & Federal Excise Duty. The parameters for selection of cases for audit in the aforementioned Audit Policy are as follows: Income Tax: According to section 214C (1A) of Income Tax Ordinance, 2001 the Board shall keep the parameters conSidential. Sales Tax: Following risk parameters have been determined by the Board for selection of cases for audit under Sales Tax: (i) Decline in value of supplies is greater than 10% over last year; (ii) Consistent decrease

in output tax/input tax ratio over last three years; (iii) Decrease in ratio of taxable supplies to total supplies by 10% or more as compared to previous year; (iv) Non-Siler, nilSiler or null-Siler for more than 6 months in the year in case the registered person is showing any turnover in income tax return of the corresponding period; (v) Manufacturers showing value addition of less than 10%; (vi) Where more than 30% purchases are from “unregistered persons”; (vii) Where more than 30% sales are to “unregistered persons”; (viii) Increase in carry forward of input tax and reduction in sales by margin of 10%.

Federal Excise: Following risk parameters have been determined by the Board for selection of cases for audit under Federal Excise: (i). Decline in value of supplies is greater than 10% over last year; (ii) Consistent decrease in output tax/input tax ratio over last three years; (iii) Decrease in proportion of taxable supplies to total supplies by 10% as compared to previous year; (iv) Non-Siler, nil-Siler or null-Siler for more than 6 months in the year, in case the registered person is showing any turnover in income tax return of the corresponding period; (v) Manufacturers showing value addition of less than.

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Record number of used cars imported into the Netherlands

World Customs

AMSTERDAM: In the first quarter of 2018, a record number of 61,530 used cars has been imported into the Netherlands, reports VWE Automotive. It is the first time more than 50,000 used cars have been imported into the country. In all, 197,726 used cars were imported in 2017, a 17.5% increase. In January 2018, the number was 18,000 vehicles, another record. Exports of used cars grew by 3.8%. In spite of this increase, imports are higher than exports for the first time.

Friday April 20, 2018

customs foils bid to smuggle meth from thailand

South korean imports of Iranian oil fell 39.3pc

SEOUL

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BANG KOK

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ustoms director-general Datuk Seri Subromaniam Tholasy said the suspect, a Malaysian man aged 47, was nabbed as he was driving from Thailand at the border security post at about 9.30am. “Customs ofSicers suspected something amiss and asked the driver to open the car boot. “OfSicers conducted a thorough inspection and found a secret compartment there,” he told a press conference at the Immigration, Customs and Quarantine (ICQS) complex here on Wednesday (April 11). Inside the compartment, ofSicers found 70 packages of drugs weighing a total of 70kg. “We believe the drugs are methamphetamine and were manufactured in Thailand for the Malaysian market. “The suspect has been remanded

South African smartphone prices could increase year s part of its ‘cost to communicate’ representations at Icasa towards the end of March, South Africa’s largest communications companies outlined their plans to further reduce data costs in the country, and the measures they had already implemented to reduce these costs. One of the most notable measures was in MTN’s presentation where the company stated that it had paid over R570 million on subsidising ‘ad valorem duties’ when bringing devices into the country. While an impressive sum, this amount of money is unlikely to go as far in the coming years, with National Treasury stating that it plans to increase the tax on luxury goods as part of the 2018 budget – with a specific classification for smartphones. “Eﬀective 1 April 2018, the maximum ad valorem excise duty for motor vehicles. –CB Report

for 14 days pending investigation under Section 39B of the Dangerous Drugs Act, which carries the death penalty upon conviction,” said Subromaniam. Meanwhile, Customs ofSicials manning an X-ray scanning machine at Klong Toey port found something suspicious among the para rubber pillows being scanned and took all the pillows meant to be

sent to Hong Kong for closer examination. Cutting open the pillows, the found two bars of heroin hidden in each of 40 pillows. Customs then booked ofSicials of the importing company for questioning before handing them over to narcotics police for further investigation in order to Sind out the mastermind of the drug trafSicking racket.

russia plans to help sanctioned oligarchs with oﬀ-shores

rime Minister Dmitry Medvedev promised on to help Russian companies targeted by US sanctions with the creation of two jurisdictions with special tax rules in Russia, similar to offshores. This applies to metallurgists, the energy sector, and trade in the products of the defense industry complex,” Medvedev said in a meeting with vice ministers.

Such plans have been discussed for some time but the recent US sanctions brought the idea back to the attention of officials. It has been turned into a bill that should be adopted soon. One of the locations would be the Oktyabrsky Island that covers 10-square kilometers and lies in the Pregolya River in Kaliningrad Oblast, a Russian exclave on the Baltic Coast between Lithuania and Poland. –CB Report

South Korean imports of Iranian oil fell 39.3 percent in March from a year earlier as demand for Iranian crude slowed, the customs data showed. In March, the world’s Sifth-largest oil importer imported 1.37 million tons of Iranian crude, equivalent to 324,000 and 612 barrels per day, compared to 2.26 million tonnes a year ago, when import volume hit a record high, according to Sigures. South Korea is a key supplier of Iranian crude in Asia, especially condensates, but the data do not provide details on the types of imports. Seoul has cut its purchases of Iranian crude in recent months from last year’s levels, despite Iran’s efforts to keep its customers in Asia by cutting the ofSicial selling price. Three sources said this came as NOC cut supply to South Korea by 3 million barrels per month this month due to reduced production

Saudi Arabia’s expat tax conundrum

his month was the end of the line for many Asian expatriates in Saudi Arabia who chose to return home following the conclusion of the school year and Sinal exams. With rising levies on each expat every successive year, many of them folded up and made preparations for an early departure. For those unfamiliar with the levy, the Kingdom of Saudi Arabia instituted a serious of Sinancial reforms in an effort to wean themselves off the dependency on oil, which, in recent years, has not proven to be a stable or reliable source of revenue. Naturally, many of the lower-in-

china Apple import and export markets

BEIJING

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roSitable news recently stimulated the apple import and export market. First, India relaxed apple import regulations, which positively impacted Chinese apple exports. India had started to tighten regulations for apple im-

ports from China in June 2017, but now the regulations have been ofSicially loosened in an announcement from the head of India’s Directorate General of Foreign Trade. How beneSicial is India’s new regulation for Chinese apple export? The Indian apple market is currently trading apples from storage. Chinese apple export will increase by several tens of thousands of tons

and the start of a new separation unit. Importers of condensates in South Korea are seeking to diversify supplies in anticipation of new US sanctions against Iran. In the Sirst quarter of 2018, South Korea’s imports from Iran dropped 39.4 percent to 3.45 million tons, equivalent to 280,736 barrels per day compared to 5.69 million tons in the same period a year earlier. Imports from Qatar in the Sirst quarter of the year were 2.19 million tons or 178,652 barrels per day, up 2.4 percent from 2.14 million tonnes a year earlier. South Korea is likely to turn into Qatari capacitors as an alternative to Iranian supplies. In total, South Korea’s imports totaled 10.91 million tons, or 2.58 million bpd, down 14 percent from 12.68 million tons a year earlier. Meanwhile, South Korean Government has Siled an appeal against a ruling by the World Trade Organization (WTO) on its import restrictions on Japanese seafood after the 2011 Fukushima nuclear disaster.

in the next few months, but this is only a fraction of the apple supply in China. The new regulations in India will only provide a limited release of the pressure on China’s apple market. The new regulations will not reverse the downward trend on the Chinese apple market. The State Council Customs Tariff Committee announced on April 2nd that the tariff for 128 US im-

come expats are the hardest hit by these new economic measures. So much so that a reported 605 expat families have decided to send their children back to their homelands to offset the levies and continue working here on a bachelor status. The countries most affected are India, Pakistan, Sri Lanka, Philippines, Bangladesh and Nepal. The Saudi government’s move was not met with a measure of conSidence as business owners feared that the loss of their skilled expat work force would bring businesses to a halt. The Jeddah Chamber of Commerce and Industry (JCCI) has asked the Ministry of Labour. –CB Report

port product categories will be raised. This new tariff impacts 120 kinds of fruit and related manufactured products. The tariff increased by 15%. China’s apple import volume reached 68 thousand tons in 2017, which is an increase of 2% in comparison with the same period in the previous year. The 2017 apple import included 29 thousand tons of US apples.

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Iran to halt gasoline imports from September TEHRAN: Iran will halt gasoline imports from September, ISNA news agency quoted the oil minister as saying on Monday, as the country aims to achieve self-suﬃciency by increasing production of the motor fuel. Minister Bijan Zanganeh said Iran’s gasoline production increased by 15 million litres per day last year. He said Iran would produce an extra 12 million litres of gasoline per day in the next four months, with 12 million litres per day added to that by the end of the Iranian calendar year in March.

Six ships take berth at port Qasim ix ships MSC Heidi, MSC Esthi, Express Black Sea, Low Land Amstel, Sakizaya Champion and Clipper Helen carrying Containers, Coal, Soya Bean and LPG were arranged berthing at Qasim International Container Terminal, Multi Purpose Terminal, Grain & Fertilizer Terminal, Engro Vopak Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA). Meanwhile two more ships Wooyang Hermes and ST Cergue carrying Steel product and Coal also arrived at outer anchorage of Port during last 24 hours. Ten ships namely, MSC Heidi, MSC Esthi, Express Black Sea, Daytona Beach, Asma, Low Land Amstel, Ocean Prelate, Sakizaya Champion, Cypress Galaxy and Horizon are currently occupying PQA berths to load/offload Containers, Rice Bitumen, Soya Bean Seeds, Coal, LPG and Palm oil respectively. Cargo

Ports & Shipping

Friday April 20, 2018

Iran’s trade with uAe topped $16 billion last year

Japan’s exports seen rising in March strong yen weighs on growth

TEHRAN

apan’s exports were expected to rise for a 16th straight month in March and to maintain a rising trend, but the strong yen was seen likely to curb the pace of growth, a Reuters poll showed. The trade data will be closely watched ahead of talks next week between Japanese Prime Minister Shinzo Abe and U.S. President Donald Trump, with trade issues expected to be high on the agenda. Exports were seen likely to have grown 4.7 percent in March from a year earlier after a 1.8 percent rise in February, the poll of 19 economists found.Imports were expected to show a 5.4 percent gain for the month, slowing substantially from a revised 16.6 percent in February, while the March trade surplus was seen at 498 billion yen ($4.6 billion).Meanwhile, Tajik Customs Service Chief Hurshed Abdurahmon and Japan’s Customs and Tariﬀs Bureau director general’s advisor Hideo Fukushima discussed prospects of cooperation at a meeting in Dushanbe. –CB Report

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ran’s non-oil trade with the UAE hit $16.83 billion in the last fiscal year 2018) registering a 21.18% rise compared to the year before, Islamic Republic of Iran Customs Administration’s statistics show. Iran exported 18.08 million tons of commodities worth $6.76 billion to UAE during the period, down 4.68% and 9.59% in tonnage and value respectively year-on-year. The exported commodities mainly included gas condensate, hydrocarbon, low-density oil and related products. Meanwhile, 6.94 million tons of goods worth $10.06 billion were imported from the UAE to Iran last year, witnessing an increase of 55.25% in tonnage and 57.11% in value YOY. The main imports mainly included cellphones, steam turbine parts and wagons. Meanwhile, Iran traded $4.98 billion worth of non-oil goods with India

during the last Iranian year which is 5.13% higher compared to the year before, making the South Asian country Iran’s sixth biggest trading partner. As per the Islamic Republic of Iran Customs Administration’s data, Iran exported 9.79 million tons of commodities worth $2.73 billion to India last year, marking a 2.45% rise in tonnage and a 2.02% decrease in value year-on-year. The exports

mainly included gas condensates, methanol, ethylene glycol and liqueSied propane. India exported 1.78 million tons of goods worth $2.25 billion to Iran during the period under review, up 11.87% and 15.34% in tonnage and value respectively YOY. The imported goods from India to Iran included semi-milled rice, wholly-milled rice, aluminum oxide, rails, ferromanganese and tea.

Iran biggest trade partner of Afghanistan in 2017-18 KABUL

throughput during last 24 hours stood at 126,899 tonnes, comprising 104,980 tonnes import cargo and 21,919 tonnes export cargo inclusive of containerized cargo carried in 5,171 Containers (TEUs), (4,166 TEUs imports and 1,005 TEUs exports) was handled at the Port. Chemicals carrier Cypress Galaxy sailed out to sea on Tuesday morning, while two more ships MSC Esthi and Express Black Sea are expected to sail on same day. Four ships, GSL Tianjin, Maersk Chicago, ST Cergue and TRF Bergen carrying Containers, Coal and Chemicals are expected to take berths at QICT, PIBT and EVTL respectively. –CB Report

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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.

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NTC gets Rs6.101 cheque under NAB’s plea bargain LAHORE: National Telecommunication Corporation (NTC) has received a cheque worth Rs6.101 million from National Accountability Bureau (NAB) Lahore, which is the amount recovered in plea bargain from the builder and consultant due to his substandard work carried out in the project of construction of the NTC regional oﬃce building here. The cheque distribution ceremony was held at the NAB complex. Viqar Rashid Khan, NTC managing director, received the cheque from Saleem Shahzad, Director General NAB Lahore, as the ﬁrst installment out of total Rs19 million amount.

Friday April 20, 2018

Business

pakistan railways reduces losses to rs5b ISLAMABAD

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akistan Railways has reduced Rs 5 billion losses in last over four and half years, narrowing the total losses from Rs 32 billion to Rs 27 billion by ensuring Sinancial discipline and taking concrete steps. Pakistan Railways also having improvement in its revenue to Rs 40 billion, including Rs.1.3 billion expenditure spent on up-gradation of more than 585 passenger coaches. Its revenue was Rs 18 billion in 2012-13, which was increased to Rs 23 billion in the Sirst year of present government in 2013-14, improving

IrSA releases 76,500 cusecs water KARACHI

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to Rs 32 billion in 2014-15, then Rs 36 billion in 2015-16 and now Rs 40 billion in 2016-17, sources in the Ministry of Railways told APP. The sources said that Rs. 50 billion rev-

FBr asked to withdraw 2% extra tax on purchases by registered manufacturers

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he Indus River System Authority (IRSA) released 76,500 cusecs water from various rim stations with inflow of 75,700 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1396.76 feet, which was 16.76 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 25,600 cusecs while outflow as 30,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1085.00 feet.

enue target has been set for Siscal year 2017-18 which would be 30 per cent higher as compared to the preceding Siscal year. The revenue target of Rs 50 billion is 94 per cent

higher as compared to the target set in 2013. They said that the availability of operational coaches has also increased to almost 1,250 to date from around 970 in 2013 due to increased spending on up-gradation of coaches, which has reached Rs 81 billion in 2016-17 from expenditure of Rs 48 billion in 201213. The increase in Railways revenue is due to improvement in the number of locomotives, introduction of new freight and passenger trains and trains regularity and punctuality. The sources said that before 2013 even passenger wagons were not being repaired as per requirement due to less allocation of funds but the position substantially improved through allocation of additional funds for refurbishment of coaches.

RAWALPINDI

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akistan Business Council (PBC) has suggested that purchases made by registered manufacturers should not be subject to two percent extra tax or should be allowed set off. In its proposals for budget 2018-19 submitted to Federal Board of Revenue (FBR), the PBC said that extra tax of two percent was levied and collected by manufacturers and importers on speciSied goods. On supply of these goods further tax

of two percent is collection. “Since extra tax already accounts for value addition, further tax is an irritant as this cannot be claimed as input,” the PBC said. In order to redressing inequity in the tax regime, the PBC suggested that purchases made by registered manufacturers of the speciSied goods should not be subject to the extra tax or else set off should be allowed. The PBC highlighted the issue that under Section 8(1)(ca) of Sales Tax Act, 1990, input sales tax is not allowed where tax is unpaid by supplier. Therefore, it suggested that this provision should be deleted as it has

been declared unconstitutional by Lahore High Court. Also, with implementation of STRIVe this has become redundant. Regarding redressing inequity in the tax regime, the PBC also proposed deletion of Section 5(A) of Income Tax Ordinance, 2001 under which 7.5 percent tax had been imposed on accounting proSit of public companies that do not distribute 40 percent proSits each year. It said that this section needs to be deleted or at least the applicability should be restricted to such companies that have not distributed dividend for immediate preceding two years.

Ahsan approves rs45b for hec under pSDp 2018-19 ISLAMABAD

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inister for Planning, Development and Reforms, Ahsan Iqbal approved allocation of Rs 45 billion for the development budget of Higher Education Commission (HEC) under Public Sector Development Programme (PSDP) 2018-19. The HEC has recommended allocating Rs 35 billion for the upcoming fiscal year but the minister gave additional ten billion to prepare doable projects to ensure more competitive higher education based on modern techniques and technology. Chairing a meeting of Annual Plan Coordination Committee (APCC) here, the minister said that in order to compete with the developed nations in higher education, research, science and technology sectors, it was essential to allocate maximum possible funding. He said in the current international scenario, it was our national responsibility to move forward in the realm of knowledge and quality research as we can compete the world only by establishing knowledge based economy. It may be mentioned here that the current government has increased the HEC development budget by over 135 per cent during previous five years.

punjab govt’s 17 firms refuse to submit record in NAB LAHORE

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7 government-owned companies of Punjab refused to submit the required record in National Accountability Bureau (NAB) as part of the Supreme Court’s (SC) order. Punjab government neglected the top court’s directives of Siling the complete record of 56 companies alleged of corruption in the La-

hore ofSice of NAB. Lahore NAB DG kept waiting for the submission of record till 10 pm, however, the complete record could not be attained. The apex court had ordered the Punjab govt to submit the record within one day, till 9 pm on. The SC will next hear the case. SC had directed the government of Punjab to provide the required record of the 56 companies alleged of corruption to NAB. A two-member Bench of the top court headed

by Chief Justice of Pakistan (CJP) Mian Saqib Nisar heard a suo motu case pertaining to the alleged corruption worth Rs 80 billion in the 56 government-owned companies of Punjab. During the proceedings at the Lahore registry, SC directed all relevant ofSicials of Punjab government to provide required record to the anti-graft body. Punjab Advocate General Shakilur Rehman requested the court to give more time, but CJP rejected his plea and directed him to

furnish a detailed report regarding the establishment of these companies by the next hearing. “This is not NAB where you do not present record, it is Supreme Court so you better come up with the record at any cost,”CJP remarked. “Elections are approaching and who will be answerable if the government is gone,” he added. “How many ofSicers were appointed with these companies and what are their salaries?” CJP asked the chief secretary.

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Abdul Basit becomes acting president of KCCI KARACHI: Abdul Basit Abdul Razzak, Senior Vice President of Karachi Chamber of Commerce and Industry (KCCI) has taken over as Acting President of the chamber in absence of its President Muﬀasar Atta Malik, who is abroad. Abdul Basit Abdul Razzak has remained associated with the Karachi Chamber since long and has dedicatedly served the business and industrial community of Karachi, said a KCCI press release here on Wednesday.

LccI chief for ground-reality based reforms

Friday April 20, 2018

Chambers

prime’s research report ranks most competitive city in pakistan

LAHORE

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axation system needs reforms based on ground realities and due consultation process with the stakeholders to ensure result-oriented policies for the businessmen. Harmonization in tax system across the country is also a must to get rid of the issue of dual taxation. In a statement, the LCCI President Malik Tahir Javaid said that though amnesty scheme is good step to bring out-of-country capital into the country but these cannot be productive until and unless major issues like“withholding tax on banking transactions”exists. He said that over the years FBR could not satisfy all its stake holders i.e. the State as well as tax payers with 1.2 million filers out of total population of 210 million fetching hardly

revenue collection of 12 to 13% of the GDP and unhappy stakeholders across the board, speaks of FBR’s failure so far. It is further repeated from the international ranking of paying taxes, which is at present 172 out of 190 countries of world which indicates very unhappy situation. The LCCI President said that neither the existing system is economically neutral, taxpayer friendly, equitable, progressive nor facilitative and supportive to generate healthy business activities for all. Taxation is of course important source of revenue collection but tax policies must be based on the best international practices and universally accepted canons of taxation. He said that it is a matter of serious concern that with the existing narrow taxbase, the policy makers instead of revolutionize the tax policy options, seems defendant on the burdening of the existing taxpayers whether corporate, (LSE&SME) salaried, individuals and certain other documented sectors of the economy.

ISLAMABAD

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he Policy Research Institute of Market Economy (Prime) in collaboration with Islamabad Chamber of Commerce & Industry launched a metropolitan competitiveness index report titled “Cities as Drivers of Growth” which ranked Islamabad as the most competitive city in Pakistan. The report covered Islamabad and four provincial capitals. The report used three main indicators i.e. economic dynamism, infrastructure efSiciency and livability. On economic dynamism index, Islamabad was ranked Sirst, Lahore second, Karachi third, Peshawar fourth and Quetta last. On infrastructure efSiciency index, Islamabad was ranked Sirst, Quetta second, Lahore third, Karachi fourth and Peshawar last. On livability index Islamabad was Sirst, Karachi second, Quetta third, Peshawar fourth and Lahore last. Addressing the report launching ceremony, Ms. Ayesha Bilal, Chief Operating OfSicer of prime said that cities were becoming drivers of

growth in the world and there was a greater need to highlight the competitiveness of Pakistani cities that would create more competition among them. She said that prime has focused on federal and provincial capitals in its initial research report while in the next phase, 6 more cities would be covered for such research study. She said ICCI was the key platform of private sector, therefore, Prime decided to launch this report from this platform. Zia Banday, Director, Prime said

that China achieved phenomenal economic growth by focusing on cities and stressed that Pakistan should also follow Chinese model to accelerate its economic growth. He hoped that this researched based index would help the policymakers in devising better plans for the development of cities. Ms. Aniqa Arshad, Research Fellow of Prime gave a detailed presentation on the Metropolitan Competitiveness Index of Prime. Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry in his welcome

cDA asked to cooperate for new industrial estate ISLAMABAD

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ML-N senior leader and former Senator Syed Zafar Ali Shah visited Islamabad Chamber of Commerce & Industry and congratulated Zubair Ahmed Malik on being elected as Chairman Founder Group of ICCI. Speaking at the occasion, Zafar Ali Shah said that over 90 percent issues of trade and industry in Islamabad were related to CDA and urged that the civic body should pay close attention to resolving their key issues. He said that being the federal capital, Islamabad was the face of Pakistan, but the state of development in markets and industrial areas was not up to the required standards. He emphasized that CDA should develop all commercial and industrial areas on model lines that would help

in promoting business activities and strengthening the local economy. He said Zubair Ahmed Malik has already rendered useful services for the business community as President of ICCI and FPCCI and hoped that as Chairman Founder Group, he would further strengthen unity among business community and play more effective role for the promotion of local trade and industry. Zubair Ahmed Malik, Chairman, Founder Group said that majority of business community in Pakistan belonged to small traders’ segment and urged that government should announce special package in coming budget for the beneSit of small traders. He said under the guidance of Founder Group, ICCI has developed strong liaison with local markets to know about the issues of traders and to take up them with relevant authorities for redress. He thanked Zafar Ali Shah for con-

gratulating him and hoped that he would always support the efforts of ICCI aimed at resolving problems of local business community. Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that a new industrial estate was badly needed in Islamabad to promote industrialization and investment. He urged that CDA should fully cooperate with ICCI in its efforts for the establishment of new industrial estate in this region. He lauded the services of Zubair Ahmed Malik for the business community and hoped that he would guide ICCI to play more effective role for serving the cause of business community. Muhammad Naveed Malik Senior Vice President, Nisar Mirza Vice President ICCI and others also spoke at the occasion and lauded the services of Zubair Ahmed Malik for trade and industry.

address lauded the efforts of PRIME for launching a report titled “Cities as Drivers of Growth” in collaboration with ICCI and hoped that it would provide better guidelines to the current and incoming government for better planning of cities development. He said according to a research study of McKinsey Global Institute, 600 major cities of the world accounted for 60 percent of global GDP which showed that the role of cities was very important in the economic development of a country.

pakistan seeks more strengthen trade ties with uk urther strengthening of trade and economic relations with United Kingdom should be the cornerstone of Pakistan’s foreign policy as this lucrative destination can help us boost national exports to the required level. This was upshot of the speeches delivered at a seminar on “Pak UK Business Ideas”, organized by the LCCI Standing Committee on Pak-UK Business Relations, at the Lahore Chamber of Commerce & Industry. The LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid, former President Mian Anjum Nisar, Convener Standing Committee on “Pak UK Business Promoion” Nabila Intesar, Co-Convener Uzma Nawaz, Trade. –CB Report

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Multan Adjudication decides 44 seizure cases of Rs45.097m MULTAN: Customs Adjudication Multan Camp Oﬃce decided 44 seizure cases of worth Rs.45.097 million during the month. According to the details, Customs Adjudication was presented 108 different seizure cases for trial during March 2017-18. Customs Adjudication collector, additional collector and deputy collector conducted trial of these seizure cases according to authorized power to adjudicate cases as per their rank and amount of duties and taxes involved against seized or conﬁscated goods.

Friday, April 20, 2018

CUSTOMS BULLETIN

Multan customs lodges FIr against owner of NDp vehicle MULTAN IMrAN ALI

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he Customs Investigation and Prosecution (I&P) branch has lodged FIR against suspect who is involved in smuggling of foreign origin Troller truck impounded by AntiSmuggling Organization in their action. According to details, Multan Customs Anti-smuggling Organization staff intercepted a foreign origin Daewoo Troller truck during examination on suspect of non-customs paid in their vigilant surveillance at Rahim Yar Khan region. The said driver accelerated the said truck and tried to run away from sight in order to avoid customs anti-smuggling staff. But customs anti-smuggling squad chased the suspected vehicle after covering some distance near Quba Lal Pir Taranda Saraye Khan Rahim Yar Khan. Multan Customs examined the said Daewoo Troller truck bearing registration number SMA-047 and asked driver Muhammad Afzal son of Muhammad Rafique to present legal documents of the said vehicle to prove its possession. But driver failed to produce

any relevant documents of the said vehicle. Customs anti-smuggling squad found said vehicle non-customs paid after the verification and decided to seize the

said vehicle under Customs Act 1969. The net value of the seized vehicle was almost Rs8 million and duty taxes of Rs3.5 million. Customs Investigation and Prosecution

Branch carried out inquiry from driver against the said vehicle after ascertaining hint of smuggling. Customs Investigation and Prosecution branch found that he was trying to

transport the said smuggle truck in the South Punjab region and he was working for the vehicle smuggling network who smuggle non-customs paid vehicles.

SBp issues rules for payment, deposit of tax under amnesty scheme KARACHI

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tate Bank of Pakistan (SBP) has issued procedure for payment and deposit of tax in US dollars and repatriation of liquid assets in Pakistan under tax amnesty scheme for offshore undisclosed assets. According to the procedure, a taxpayer would Sile ‘Form A’ given in the Foreign Asset (Declaration & Repatriation)

Ordinance, 2018 at the ofSicial portal of the Federal Board of Revenue to generate Payment Slip ID (PSID) for payment of tax due on the foreign assets declared in the return. To general the PSID, the taxpayer will go to FBR payment portal and enter the tax liability in Pak Rupee as determined declaration; the system will convert the Pak Rupee into US Dollar and give the amount of tax liability in both US Dollars and Pak Rupee as per the daily exchange rate notiSied by the SBP to FBR. The SBP said that after declaration of assets and generation of

PSID, the taxpayer shall arrange to remit the US Dollar funds against the tax liability as reSlected in the PSID to SBP by wire transfer in the SBP account in New York USA. The central bank said that after remitting the funds to SBP Account, the taxpayer shall electronically send following information and documents to SBP, Karachi. – A copy of wire transfer, or swift message, bearing necessary instructions including speciSication of the CNIC/NTN of the taxpayer; Scanned copy of duly signed Form A and PSID The central bank said it shall, after verifying receipt of the

money in its account, covert the USD funds into PKR and credit the same to the federal government account against the tax receipt. For collecting the tax receipt in the ‘Federal Government Account No. 01’, SBP will generate Computerized Payment Receipt (CPR) against the PSID received from the taxpayer; the CPR is the formal evidence of payment of tax both for the taxpayer and the FBR. The SBP shall electronically transmit a scanned copy of the CPR so generated to the taxpayer for its record. The SBP further said that the taxpayer shall then link CPR No. received from SBP

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with the Form A at the FBR portal as the tax payment evidence to complete the assets declaration process. Regarding, repatriation of liquid assets in Pakistan, the SBP said the liquid assets declared to be repatriated into Pakistan in Form A for investment in federal government bonds and/or for credit to the taxpayer’s Pak Rupee account, shall also be remitted to the SBP account by wire transfer. The SBP said that after remitting the funds to SBP account, the taxpayer shall electronically send following information and documents to SBP, Karachi at the given email ID.