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Karachi, Tue April 24, 2018
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he Federal Board of Revenue (FBR) is going to defend its stance on recently announced tax amnesty scheme, budgetary proposals for the Qinancial year 2018-19 and other plans before the National Assembly Standing Committee on Finance and Rev-
enue on Monday. Most likely, FBR Chairman Tariq Mahmood Pasha along with his core team, including Dr Muhammad Iqbal, Member Customs Muhammad Zahid Khokhar and Member FATE Nausheen Javaid Amjad, will brief the committee on recent achievements of the FBR. Official sources told Customs Today that, on January 4 this year, the FBR sought proposals from all the
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stakeholders for upcoming Budget 201819, urging that the suggestions must reach the board by January 18. The board requested the stakeholders to give their input and suggestions in a speciQic format developed by FBR for improvement in tax laws, broadening of tax base for wider participation in revenue generation efforts, enhancement of tax to GDP ratio, generation of revenue and facilitation of taxpayers.
North Region earns relative profit of Rs98m from all duties & taxes
Issuance of notices underlies retrieval of taxes from defaulter companies
Customs Airport foils bid to smuggle costly pigeons to Kuwait
Surriya Butt due to revise Valuation Ruling No: 986/2016 on May 15
Removal of dangerous materials:Customs official Dost involved in‘financial terrorism’
Customs North Region fetched an extra revenue of Rs98million | See pAge 02 |
Customs Export has recovered an evaded amount of taxes and duties | See pAge 03 |
Customs Preventive team deputed at AIIA foiled a bid to smuggle costly pigeons | See pAge 04 |
DG Valuation has decided to revise the Valuation Ruling No: 986/2016 on May 15 | See pAge 09 |
Business community of South Punjab is seriously aggrieved by non-professional | See pAge 16 |
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Taftan Quetta Customs collects Rs727.15m of all duties and taxes Tuesday, April 24, 2018
ISLAMABAD: The Customs House Taftan Quetta earned Rs727.15million of all duties and taxes during the month of March FY2017-18. According to details explained by the sources of Model Customs Collectorate Quetta that the Customs House Taftan generated an extra revenue against an allocated revenue target as Customs Duty (CD) and Sales Tax (ST). It was told that Taftan was not earmarked revenue targets for other heads like With Holding Tax (WHT) and Federal Excise Duty (FED).
Islamabad
customs north Region earns relative profit of Rs98m from all duties & taxes
ISLAMABAD
ISLAMABAD
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tARiQ DeRYA
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/s Kohinoor Trader submitted a review petition in the Customs Appellate Tribunal, challenging an announcement of the tribunal dismissing its case against Directorate General of Intelligence and Investigation, Islamabad. A division bench of the Customs Appellate Tribunal would hear the matter during coming week. A single bench of the Customs Appellate Tribunal comprising Members Tribunal, Syed Muhammad Anwar, had disposed of the matter earlier. The bench heard the arguments from sides. M/s Kohinoor Traders had filed the case against Directorate of Intelligence and Investigation, Islamabad. The Customs Appellate Tribunal also disposed of a customs reference filed by M/s Royal Group after hearing arguments from both sides. Earlier the Customs Appellate Tribunal’s bench comprising of Members Tribunal, Syed Muhammad Anwar and Muhammad Nasir Khan heard the case being contested against Directorate General of Intelligence and Investigation, Islamabad. The bench remanded back the matter to departmental adjudication for rehearing.
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he Customs North Region fetched an extra revenue of Rs98million under the head of all duties and taxes during Qirst half of April FY17-18 against the same corresponding FY16-17. According to details explained by ofQicial sources of the Chief Collector OfQice Islamabad that the North Region, which comprises Model Customs Collectorate (MCC) Islamabad, Peshawar, Sialkot and Gilgit-Baltistan (GB), received Rs1214.28million of revenue under all the heads during Qirst half of April FY17-18 against a revenue collection of Rs1116.33million during the identical previous period. The sources told CT that the MCC Islamabad generated Rs716.02million under all the heads during Qirst half of April FY17-18 against the collection of Rs552.33million under the same heads during the identical corresponding FY16-17. The MCC Peshawar earned Rs497.72million of all taxes during 1st to 15th of April FY17-18 against a revenue collection of Rs562.13million during the same corresponding duration. During Qirst half of April FY1718, the MCC Samberial collected Rs0.54million under all the heads during Qirst half of FY17-18 while it did Rs1.87million as all taxes during the same previous period. The Cus-
kohinoor trader submits review petition in customs Appellate tribunal
toms Collectorate of GB is still closed and will reopen at the end of April FY17-18. The North has been allocated Rs2999.09million of revenue collection target for the month of April FY17-18. The Customs North Region has to earn Rs1784.81million under all the heads during the next half month (16th to 30th) of April FY17-18. The North Region has shown 8.77% difference by revenue collection during Qirst half of April FY17-18 against the identical previous FY16-17 whereas the North has shown -59.51% percent
growth during Qirst half of April against an assigned revenue collection target for the entire month of April FY17-18. Meanwhile, Dr. Jawad Uwais Agha, Chief Collector, North Region issued a reminder note to the FBR regarding the creation of a post of Additional Customs Inspector at the MCCs Islamabad, Sialkot, Peshawar and Gilgit-Baltistan. The Chief Collector North Region Islamabad has written to the Member Admin, Federal Board of Revenue (FBR), on January 2018 regarding the recruitment of the vacant posts of
inspectors at the Customs North Region. The Chief Collector North highlighted the CPEC route and increase of workload in the jurisdiction of all the four collectorates. Jawad Agha wrote a letter to the Board that there is a huge gap of human resources and the operationalization of the New International Islamabad Airport (NIIA). The Chief Collector North said the vacancy in the cadre of Deputy Superintendent was converted to the cadre of Inspector vide FBR letter No.(5)-M-iv Cust-2007-iii dated November 6, 2015.
Adjudication settles 17 out of 24 seizure cases valued at Rs1056m
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ISLAMABAD
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he Collector Adjudication Islamabad decided 17 cases worth Rs1056million out of 24 seizure cases Qiled during the month FY17-18 while two cases were sent back for further details. According to details given by sources of Adjudication Islamabad that Collector Adjudication received total 26 cases during above said period involving the value of
Rs1495.931million. It was added that, by FY2017-18, the pendency of seizure cases was 77 whereas the revenue involved in said case is Rs984.755million. The sources told CT that a total of 103 cases are under adjudication process up to March FY2017-18 while fresh 26 cases were adjudicated during said period. It was added that a total cases in value of Rs2480.686million are received by the adjudication over 03 to 06 months while no case is pending up to a year. The sources further told that all the
pending contravention seizure cases worth Rs1.00billion at the Collectorate of Adjudication Islamabad will be decided by 30th of June Financial Year 2017-18. This initiative will help maximize the revenue recovery. The sources said that the collectorate has adjudicated 308 numbers of contravention seizure cases up to the end of January FY17-18. It was added that a total revenue of Rs241.657million was involved in the cases which come to the decisions up to January FY17-18.
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Contraband branded BP & diabetes apparatuses priced at Rs6.50m seized KARACHI: The Directorate, Customs Intelligence and Investigation, Quetta, frustrated a smuggling bid of a non-duty-paid branded Blood Pressure (BP) apparatus and diabetes checking machines priced at Rs6.50million. Sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Chaudhary received a tip-off that some smugglers are trying to smuggle medical accessories including non-duty-paid branded BP apparatus and diabetes checking machines from Quetta.
Valuation Ruling no: 982/2016 poised to be revised by Surriya on May 3
Tuesday April 24, 2018
Karachi
issuance of notices underlies retrieval of taxes from defaulter cos
KARACHI
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he 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.
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customs impounds luxury vehicles’ parts worth Rs6m KARACHI
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he Customs Collectorate Karachi has taken into possession luxury vehicles’ radiators’ water bodies and three chasses priced at Rs6million. Sources said that Deputy Collector Gwadar received a tip-off that some smugglers are trying to smuggle abovementioned items. He constituted a raiding team under the supervision of Customs Preventive Inspector Sardar Amir and others. The team, during a search operation on the Bar Highway Road, intercepted a truck bearing registration No: GN-7262. During a search, the team impounded 50 radiators of luxury vehicles, 70 vehicles’ water bodies and three chasses of luxury jeeps valued at Rs6million. The team impounded all the smuggling goods and apprehended two alleged smugglers including a trucker.
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he Customs Export has recovered an evaded amount of taxes and duties of Rs13.75million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that, during a scrutiny of the import data, it was revealed that M/s Tehmina Marble and Export availed undue beneQits and concessions after exporting different consignments of marble polish sheets by misusing the SRO 558 through Examiner Masoom Nawaz Khan on September 7, 2017. Sources further said that the company was allegedly involved in the tax evasion of Rs8.25million. After detecting the tax evasion in the previous month, the Customs Export served on it a Qinal notice on 1st of April 2018 to deposit the evaded amount in 14 days. After receiving the notice, the management of M/s Tehmina Marble deposited the evaded amount into the ofQicial account of the Customs Export on 11th of April in favor of the Custom Export. Another defaulter company named M/s Logistic Associates (Thatta) also cleared Rs5.50 million of taxes and duties. Sources told the correspondent that M/s Logistic Associates (Thatta) also availed undue beneQits and concessions and avoided paying taxes according to the cus-
toms bylaws. The Customs Export authorities served on it a Qinal notice on 2nd of April 2018. After receiving the notice, the management of M/s Logistic Associates (Thatta) deposited the evaded amount of taxes into the ofQicial account. It is to mention here that Custom Export will investigate 12 more cases in the month of April. Meanwhile, Collector Customs Export Saqif Saeed has said that we are investigating two defaulter com-
tehmina Marble deposited the evaded amount into the official account of the customs export on 11th of April in favor of the custom export. Another defaulter company named M/s Logistic Associates (thatta) also cleared Rs5.50 million of taxes and duties
pcA detects tax evasion by Subaro industries gharo
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KARACHI
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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 8.27 million by M/s Subaro Industries, Gharo, it is learnt. Sources told Customs Today that the company imported a consignment of different chemicals for onward use in paints and printed material and got it cleared from the Port Qasim Karachi
vide GDs on July 8, 2017 by paying customs duty very low at 8 percent after claiming the beneQit of the SRO 571/2007. However, the subject items were correctly classiQiable under the PCT 2789.2109, attracting customs duty at 12 percent and income tax at 14 percent, thus, by way of mis-declaration of classiQication, the company evaded/short-paid Rs 8.27 million. The goods were cleared by Appraiser Wajahat Kazmi. Sources said that the importer violated the provisions of Section 16 (5-A) of the Customs Act-1969,
Section 42 read with Section 52 of the Sales Tax Act-1990 and Section 89 of Income Tax Ordinance 2001 punishable under clauses (148) and 124 of Section 24(3) of the Customs Act-1969, Section 18 of the Sales Tax Act-1990 and Section 25 & 45 of Income Tax Ordinance 2001 and Section 9-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.
panies 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.
pak rupee depreciates to Rs117.50 he Pakistani rupee depreciated against the US currency in open market and remained firm in interbank. As per the local money market, the dollar gained 60 paisas in open market for buying at 117.20 and 30 paisas for selling at 117.45, while it remained unchanged in interbank for buying at 115.50 and for selling at 115.70.
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Customs Appellate Tribunal hears 18 cases Tuesday April 24, 2018
Lahore
LAHORE: The single and double benches of the Customs Appellate Tribunal heard 18 cases 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.
fto seeks complete record of case filed by M/s JH web Developers LAHORE
SAJiD nAwAZ
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ederal Tax Ombudsman (FTO) Advisor Mian Munawar Ghafoor has heard a case Qiled by M/s JH Web Developers against the Regional Tax OfQice (RTO-II) Lahore and Qix for the next date of hearing with complete record. During the proceedings of case, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant since last two years. He said the RTO-II collecting excessive taxes from the company during the last two years. The petitioner approached the ofQicials concerned several times for the release of refunds, but the RTO ofQicials failed to clear refunds after the passage of a
LHc bars fBR to freeze bank account of pakistan Railways ahore High Court (LHC) has restricted the Federal Board of Revenue (FBR) to freeze the bank accounts of being operated by Pakistan Railway (PR) till further order. According to the details, Justice Shahid Jameel Khan heard the appeal which is filed by the Pakistan Railway (PR) in which the counsel for appellant argued that Federal Board of Revenue (FBR) has issued a tax notice of Rs12 million. Adding more that Pakistan Railway has submitted its tax regularly. He prayed before the court that tax notice of amounting Rs 12million is illegal and mala-fide so the court may declare the same as null and void issued by the Federal Board of Revenue and also restricted the FBR to attach the bank account of Pakistan Railway. Counsel also argued that same case is also under proceeding in the Inland Revenue Appellate Tribunal (ATIR). –CB Report
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reasonable time. 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. 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 ofQice 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 advisor postponed hearing of the case until next date for hearing and directed the parties to appear before him on said date with complete record to conclude arguments in the case.
customs Airport foils bid to smuggle costly pigeons to kuwait LAHORE
M HAYAt
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ollectorate of Customs Preventive team deputed at Allama Iqbal International Airport foiled a bid to smuggle costly pigeons to Kuwait. Sources told Customs Today that during checking of passengers of Kuwait Airways Flight No. 204, a customs team intercepted a passenger identiQied as Rafaqat and recovered 29 costly pigeons from him. The passenger belonged to Sialkot. Sources said that the Customs Preventive team produced the accused before the court of a wildlife magistrate who ordered Rafaqat to pay Rs 25,000 and allowed him to take the pigeons with him. It is necessary on mention here that Customs Preventive Faiz Ahmad directed all anti smuggling staff who are deputed at airports to zero
customs Appellate tribunal reserves verdicts on four appeals
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he single and double benches of the Customs Appellate Tribunal heard 18 cases and adjourned all for different dates without those cases whose verdicts were reserved. The division bench-II, comprising Omer Arshad Hakeem, Member Judicial and Saud Imran, Member Technical, heard nine cases including M/s AlRehman Fabrics versus Directorate Intelligence and Investigation Faisalabad, Raja Qaiser versus Raza Ahmed Cheema, SMD Sons versus Directorate of Intelligence and Investigation Mul-
tan, Customs Lahore versus M/s AlTawakal Agencies. Furthermore, same bench heard cases of Customs Lahore versus Barkat Ali, A Z Apparal versus Customs Faisalabad, Directorate Intelligence and Investigation Multan versus Tahir Rauf, Customs Faisalabad versus Beacon Enterprises and Directorate of Post Clearance Audit (PCA) Lahore versus Shengshen. The single bench-I, comprising Omer Arshad Hakeem, Member Judicial, heard nine cases which include Qaiser enterprises versus Customs Lahore. –CB Report
tolerance policy towards smuggling. He directed that anyone who found involved in smuggling should be dealt according to law. Meanwhile, A team of Customs Preventive foiled a bid to smuggle foreign currency abroad from Allama Iqbal International Airport and arrested the suspect. As per details, an alleged WAPDA SDO, Akhtar Mehmood, was
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travelling to China by Qlight no 186 and declared that he was carrying $10,000. However, the authorities recovered 15,000, dollars, 2,687 Yuan and 9,530 rupees from him. The customs authorities registered an FIR against him and arrested him. Meanwhile, the Customs Allama Iqbal Airport has achieved 74.47 percent additional target.
Dc Moazzam transfers 17 employees ollectorate of Customs Preventive Deputy Collector Moazzam Raza has issued a notiQication no: 01HRD/Estt/82/2016-17/314 for transferring 17 employees to different locations. According to the notiQication, Inspector Ghulam Sarwar Mehdi is transferred from Law Branch to General Branch, Inspector Maqbool Khalid Sheikh is transferred from Law Branch to R&R Branch of headquarters, Inspector Faqir Mohammad from Air Freight Unit of Allama Iqbal International Airport to Customs Headquarters,
Inspector Mohammad Ejaz Ahmad is transferred from Customs General Post OfQice to Customs Headquarters, Inspector Mansab Ali Dogar is hereby transferred from Customs Headquarters to Airport TrafQic Branch, Inspector Mohammad Habib Mayo is hereby transferred from Headquarters to GPO, Inspector Mohammad Ashraf Qazi Headquarters to GPO, Inspector Sultan Masood Noor is transferred from Headquarters to Land Freight Unit Wagah, Inspector Mohammad Saeed is transferred Airport TrafQic to Air Freight Unit Wagah. –CB Report
companies allowed import of second-hand machinery, equipment
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onstruction companies, duly registered with Pakistan Engineering Council, mining, oil and gas and petroleum sectors are allowed to import second-hand plant, machinery and equipment actually required for their projects in
Pakistan. The equipment will subject to the pre-shipments inspection in the exporting country by any of the internationally recognized preinspection companies listed at Appendix-H to the effect that the plant, machinery and equipment are in good working condition and they are not older than ten years; (2) oil, gas and petroleum sector companies are also allowed import of used
drilling rigs, not older than twenty years subject to pre-shipment inspection by one of the companies listed in Appendix–H certifying that the said rigs are in good working condition and have a minimum remaining productive life of ten years. Construction, mining and petroleum sector companies are also allowed to import secondhand or reconditioned parts of the plant,
machinery and equipment as clause (1); (4) Second-hand or used passenger transport vehicles, including buses (PCT heading Nos. 87.02 and 87.03), trucks (PCT heading No. 87.04) and static road rollers of 1012 tons capacity, 55 HP (PCT heading No. 8429.4000) shall not be allowed; 6 (5) Construction companies, mining, oil, gas and petroleum sector companies.
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Tuesday, April 24, 2018
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KARACHI
M B RAnA
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he Customs Court Judge Syed Faiz Rasool Rashdi directed investigation ofQicer to complete investigation and submit charge sheet against suspect namely Adnan Islam, owner of M/s Adnan International Lahore, owner/partners of M/s Mania Enterprises Karachi and others to be ascertained during the investigation, who were booked in a case of attempting to smuggle non-duty paid 5000 kilograms of betel nuts and also evaded the duty and taxes in the tune of Rs. 874,928.
During the hearing, investigation ofQicer of Customs Collectorate of Appraisement-West, Intelligence Branch submitted another Qirst information report and informed that on a credible information, under the self-assessment system of WeBOC by M/s Adnan International, Akbari Mandi Lahore through their clearing agent M/s Mania Enterprises said to contain 300 bags of Damar Batu having total weight 15000 kilograms. The Automated Risk Management System of WeBOC selected the said goods for examination. He further informed the court that during the examination, goods were found mis-declared and contrary to the declaration,
and goods found on physical examination are 100 bags of betel nuts having total weight of 5000kgs were also found in the container besides 9880kgs Damar Batu. Investigation ofQicer said that it is established beyond any iota of doubt that said suspects have attempted to clear the impugned goods which was restricted items under the garb of Damar Batu and evaded the amount of Rs 874, 928 to the national exchequer, therefore, said goods were seized and case was registered against them. After the hearing, court taken FIR on court record and directed him to complete investigation and submit charge sheet on next date of hearing.
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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
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Risks of macroeconomic imbalances
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ccording to the latest report of the World Bank entitled ‘South Asia Economic Focus Spring 2018’, many short-term measures are required to streamline external and domestic imbalances and ensure macroeconomic stability. However, implementation of medium-term reforms is also necessary to control widening macroeconomic imbalances and allow the economy to move at sustainable growth rate. As the general elections are near, it will limit the scope of interim set up to take any decision on the policy adjustments, lower the rupee value or take drastic measures to maintain fiscal consolidation. The mandate of the current government is also going to end in a few weeks and it has lost the opportunity to reform the aged old tax system and take decisive steps to meet the challenges of competitiveness. The country is already facing balance of payments problem and the current level of foreign exchange reserves has reached a vulnerable point. The international donor agencies had time and again pointed out need for a comprehensive strategy to lower the cost of doing business and improving productivity. The bank expects the GDP growth will reach 5.8 percent in 2018, but possible policy adjustments measures are likely to slowdown in growth in the next fiscal year. There is need to correct the macroeconomic imbalances to achieve growth rate of 5.4 percent in 2020. Former finance minister Ishaq Dar claimed that the country had achieved macroeconomic stability, but no sooner he left the oďŹƒce, all his claims fell apart. There is a need to recover, restore and preserve the pace of steady growth by implementing reforms. The World Bank report claims that the country was expecting to achieve the GDP growth of 5.8 percent in 2018 on the basis of improved energy supply, persistent private consumption growth and relying on the infrastructure projects under China-Pakistan Economic Corridor. To manage the political risks will be an uphill task for the next government. According to the report, apart from improvement in the foreign direct investment, the country will continue to accept loans from various sources in the medium-term while the trade deficit will continue to remain at an elevated level during fiscal year 2019-20.
free fall of rupee value against dollar P
LAHORE
DR AftAB AfZAL
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akistani rupee is experiencing a free fall these days as the exchange rate has touched Rs 117 against a US dollar in the open market though the inter-bank exchange rate still remained stable. The media reports suggest the dollar has hit the highest rate for the second time after it closed at Rs 117 almost a month ago, on March 20, when rupee was depreciated by 4.5 percent in the inter-bank market in a single day. According to the currency dealers, the demand for dollar has increased partly because of the investment of undeclared
money in the local market while the holders of black money also prefer to invest in the US currency to avoid the money laundering issues. The black money is mostly used for investment in the property sector and the subterranean currency market is thriving after the prime minister announced amnesty scheme. According to the amnesty scheme, a property deal up to Rs 4 million is not possible without declaring the source of income. When such schemes are launched, the bureaucracy intentionally adds a few sections to the law to foil the whole exercise. As rupee had already been vulnerable due to certain gov-
ernment actions, the undeclared legal and illegal money is chasing the dollar since amnesty scheme was announced earlier this month. The smuggling of currencies has increased manifold as the scheme has provided a last time opportunity to the corrupt elements to whiten their assets without going to through the official rigmarole. The short supply of dollar has also increased its demand in the open market. The depreciation of rupee always caused thrill in the financial sector and the new scheme has changed the dynamics of the financial economy. The depreciation of rupee value has increased the values of all the currencies in the open mar-
ket. People have now started transferring their ill-gotten money to Dubai to bring it back to Pakistan in the form of dollar and whiten it under the scheme. Reports indicate heavy buying of dollars by smugglers at higher rate continues which created shortage of the currency in the local market. Others are investing in prize bonds, gold and attractive investment schemes, lending credence to the notion that the policymakers leave no opportunity to spoil the economy. If the current fall in the value of Pakistani currency continues, it would reverse all the economic gains claimed by the PML-N government during the four and half years.
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Director Internal Audit directs Islamabad Customs to submit details of all cases ISLAMABAD: The Director, Internal Audit, (Customs) asked the Model Customs Collectorate (MCC) Islamabad to provide detaild of cases relating to outstanding arrears, disposal of cases and their latest positions to present them to the Chairman FBR. Director, Internal Audit, Islamabad Sadiq Ullah Khan asked the Model Customs Collectorate (MCC) Islamabad through a letter No: 1(9) IAC(M)/2016-17/Ibd/218 for meeting for the discussion of the audit paras relating to the recovery of government revenue. The sources told Customs Today that Directorate of Internal Audit asked the MCC Islamabad with reference to the the meeting held on and subsequently presentation of the Director General Audit Lahore to the Chairman Federal Board of Revenue (FBR) where the status of outstanding arrears, disposal of cases and their latest positions were highlighted.
iHc seeks relevant record from parties on customs cases filed by Lakson tobacco ISLAMABAD
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he Islamabad High Court (IHC) has directed parties to submit record in customs cases filed by M/s Lakson Tobacco Corporation Limited against office 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 the previous hearing, the bench had relisted the case for hearing along with other cases. M/s Lakson Tobacco Corporation Limited had named additional collector customs in its petition against FBR. Meanwhile, another bench dated in office the hearing of M/s Hasas Engineering and Construction Company (Private) Limited’s case. The appellant had challenged the act of recovery of the tax amount by commissioner Inland Revenue of Large Taxpayer’s Unit, Is-
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Tuesday April 24, 2018
National
Surriya Butt due to revise Valuation Ruling no: 986/2016 on May 15 D
KARACHI
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irectorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 986/2016 on May 15, 2018, it is learnt. Surriya Butt said that the department is reviewing suggestions from various importers to set the new prices of secondhand clothes, shoes and used leather bags, jackets, belts used toys and kitchen wares. 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 market. Sources told Customs Today that a petition was Qiled with the Customs Valuation in which change in prices of above said articles was requested. Sources further told CT that Valuation Ruling No: 986/2016 was issued on 6th of December 2016. A meeting was held with the stakeholders on April 11, 2018. Importers were advised to furnish the import invoices of the last three months showing factual val-
ues 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. Meanwhie, The 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. More-
over, 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.
Rana Afzal rules out new tax in next budget ISLAMABAD
lamabad. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty (FED). M/s Hasas Engineering and Construction Company Private Limited had prayed the court that FBR office 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.
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inister of State for Finance Rana Muhammad Afzal has said that the government was not imposing any new tax in the budget 2018-19 to facilitate especially common people. “The government wanted to provide maximum relief to people belonging to all sectors of life in the budget,” Rana Afzal said while addressing a pre-budget seminar organized by National Press Club here. The minister said that due to a number of reforms introduced by the current government in taxation system, the revenue collection had been doubled to over Rs 4 trillion in the year 2017-18 compared to Rs 1.9 trillion in 2013 besides, expansion of tax base from 775,000 to
over 1.2 million tax payers. He said in 2013, Pakistan was on the verge of being declared as a defaulter and a failed state, but the new government led by Pakistan Muslim League-Nawaz (PML-N) took a number of initiatives to strengthen economy which has resulted in a record economic growth of 5.8 per cent which was the highest in 13 years. However, the minister admitted that there were still few challenges to the country’s economy which needed to be addressed immediately. He said although Qiscal deQicit witnessed sharp increase during current year, but the economic team of the federal government was endeavoring to contain it to Qive per cent by end of current Qiscal year. “Our exports are now growing by 13 percent while during March, 2018, the exports witnessed an in-
crease of around 23 per cent which was a positive sign for the country’s economy,” he said adding that bumper crops, controlled inQlation, increasing remittances were the positive signs for our economy. He also called upon the opposition to get together for evolving a charter of economy and to prepare responsible economic policies so that the country could achieve sustained economic growth. He also called upon the people of Pakistan to provide PML-N another chance to rule the country for next tenure in order to ensure continuation of economic policies and reforms introduced by the current government in next Qive years as well. To a question regarding tax amnesty scheme, the minister said that through this scheme nobody will be affected, however it would help expanding tax net and collec-
tion of more revenues. Earlier, Former Chairman FBR Dr Muhammad Irshad said that salaried class was being provided a big relief in terms of taxes in the next budget. He hoped that the government would not impose any new taxes. He pointed out that the main problem in Pakistan’s taxation system was narrow tax base and this problem could be resolved by taking measures to broaden tax base in the country. Another dilemma in taxation system, he said was lack of balance between direct and indirect taxes. Regarding tax amnesty scheme he expressed reservations and said that it should have been announced after developing political consensus. Former Secretary Finance, Dr Waqar Masood said the country witnessed strong growth during current Qiscal year and touched 5.8 percent, the highest in over a decade.
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Customs Intelligence to auction goods, vehicles on 25th Tuesday April 24, 2018
National fto seeks relevant record from parties in refund claim case
LAHORE: Directorate of Customs Intelligence and Investigation, Lahore has announced to auction confiscated goods and vehicles on April 25. The goods and vehicles which would be auctioned are lying at State Warehouse of Directorate of Intelligence and Investigation, Lahore.
Superintendents, deputy superintendents, appraising officers transferred
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dent Mohammad Javed Iqbal from Railway Station T-10 to LFU Wagah, Superintendent Shahzad Akhtar Mahmood is transferred from AFU to AFU Export, Superintendent Mohammad Aslam Khan is transferred to AFU, Refund & Revate Branch. Deputy Superintendent Malik Rab Nawaz from Land Freight Unit Wagha to Shift Incharge Airport Traffic, Appraising Officer Saquib Nazir Khan Air Freight Unit to Railway Station T-10, Appraising Officer Ijaz Cheema from GPO to LFU Wagha, Appraising Officer Sarfraz Ahmad Railway Station T-10 to AFU, Appraising Officer Waqas Gillani from Railway Station T-10 to GPO and Appraising Officer Hassan Waleed from Customs Headquarters to Air Freight Unit with immediate effect.
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he Federal Tax Ombudsman (FTO) heard an appeal filed by Shamsud Doja, owner of M/s Pakistan Mineral Processing, against Corporate Regional Tax Office (CRTO) until the next date of hearing. The FTO also sought relevant details to decide the case. According to the details, FTO consultant Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the CRTO had failed to release the tax refund of the last two years claimed by the company. He said that the CRTO collected excessive tax during the last two years. He approached the commissioner concerned many times for issuance of refunds but the CRTO officials did not pay the refunds after the passage of reasonable time. At the end, the company decided to approach the FTO, seeking interference in this case.
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SHc seeks comments on petition challenging VR no 1146/2017 he Sindh High Court (SHC) has issued notices to the Customs Department and deputy attorney general to file their respective para wise comments on a constitutional petition filed by M/s Berger Paints Pak (Private) Limited. The company had challenged Valuation Ruling No 1146/2017 dated May 3, 2017, enhancing valuation of consignments of raw material for paint phenolic resin, polyurethane resin and melamine resin imported by the petitioner. A two-member bench, headed by Justice Munib Akhtar, heard the matter. Earlier, counsel for the petitioner stated that it is engaged in the lawful imported of raw material for paint phenolic resin. –CB Report
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ollectorate of Customs Preventive Deputy Collector Muhammad Moazzam Raza has issued a notification no: 01HRD/Estt/82/2016-17/312 according to which following employees are directed to report for duty on their new place of posting. Superintendent Muhammad Nasir Minhas is transferred from Airport Traffic to Import Section of Air Freight Unit, Superintendent Bushra Parveen is transferred from Headquarters to Air Freight Unit of Allama Iqbal International Airport, Superintendent Manzoor Ahmad Bhatti is transferred Land Freight Unit Wagah to Railway Station T-10, Superinten-
Quetta customs i&i seizes huge quantity of plastic dana, goods during checking T
KARACHI
wAQAR AnSARi
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he Directorate of Customs Intelligence and Investigation has seized huge quantity of White Crystal plastic dana worth Rs 7 million. Sources told Customs Today that Director Customs Intelligence and Investigation Muhammad Akram Chaudhary received secret information that some smugglers are trying to smuggle White Crystal plastic dana and other items from Quetta to Afghanistan. He constituted a raiding team under the supervision of Superintendent Rehmat Afzal and others. The team enhanced the surveillance on Quetta Highway Road and started the search of vehicles. The team intercepted a truck bearing registration no: QBN-846 which was going from
Quetta to Afghanistan. During the checking, the customs team recovered 200 packets of White Crystal plastic dana, different types of nuts and bolts and other
things Rs 7 million. The customs team impounded all smuggling items and truck being used in the smuggling and arrested three persons who were in-
volved in smuggling. Sources told that after completion of initial investigations from accused persons a case will be registered against them.
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Customs Appraisement West generates Rs4248.98m KARACHI: The Customs Collectorate, Appraisement West, has collected Rs4248.98million 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 West received Rs2847million as Customs Duty, Rs741.25million of Sales Tax, Rs648.87million as Income Tax and Rs12.58million under the head of Federal Excise Duty. If we talk about first 15 days of previous month of March, the Customs Collectorate, Appraisement West, has generated Rs6269.76million of Customs Duty, sales tax, income tax and federal exercise duty during first 15 days of March including Rs3247million as customs duty, Rs1458million of sales tax, Rs1547million.
customs posts 110 percent growth ahead of collection duration target ISLAMABAD
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he Model Customs Collectorate (MCC) Islamabad achieved 110% revenue growth under all the heads of duties and taxes during July to 14th of April FY17-18 which is ahead of allocated annual (July to June) FY17-18 revenue collection target. Zulfikar Ali Chaudhry, Collector MCC Islamabad, told Customs Today that Islamabad Customs showed exceptional performance during the initial nine and a half months under all the heads against an assigned revenue collection target of the same heads. Talking about the annual revenue performance, he explained that the MCC achieved 84% as CD, 150% of Sales Tax (ST), 96% as Income Tax (IT) and 109% of Federal Ex-
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cise Duty (FED) up to 14th of April FY17-18 against an earmarked annual revenue collection target under the said heads. The Collector MCC Islamabad told the correspondent that the collectorate received Rs17045.44million of revenue under all the heads from July to 14th of April FY17-18 against an assigned proportional target of Rs11938.58million while it has been allocated Rs15559.23million annual revenue target under all the heads. He said that the MCC has been assigned Rs6845.85million under the head of CD for FY17-18 whereas a proportional assigned target under the same head by 14th of April FY17-18 was Rs5086.75million while the collectorate generated Rs5757.81million against an earmarked proportional revenue target upto 14th of April. He added that the collectorate obtained 113.19% growth under the head of CD against an assigned proportional revenue collection target.
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court approves judicial remand of suspect in alcohol smuggling case
M/s Berger paints challenges impugned VR no 1146/2017 in SHc KARACHI
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/s Berger Paints Pakistan (Private) Limited has moved the Sindh High Court (SHC), challenging impugned valuation ruling no 1146/2017 dated May 3, 2017 enhancing valuation of consignments of raw material for paint phenolic resin, polyurethane resin and melamine resin imported by the petitioner. In its constitutional petition, the counsel for the petitioner stated that it is engaged in the lawful import of raw material for paint phenolic resin, polyurethane resin and melamine resin and always fulfills all the legal formalities in accordance with law. However, the petitioner is seriously aggrieved by the actions of the respondents assessing the imported consignments of raw material on the bases of impugned valuation ruling no 1146/2017 dated May 03, 2017. Citing Chairman Federal Board of Revenue, Collector of Customs Collectorate South, Collector of Customs Collectorate East and Director General of Valuation as respondents, petitioner pleaded the court to declare the action of the respondents as illegal, mala fide and arbitrary.
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ustoms Court Judge Syed Faiz Rasool Rashdi has sent a suspect, Ashok P. Jethmilani, to jail on judicial remand. The suspect was booked for attempting to smuggle 5,844 non-duty paid bottles of alcohol. After rejection of his bail, the customs authorities arrested him and sent him to customs lack-up. During the hearing, investigation ofQicer sought further remand of the suspect, but the court sent him to jail and directed the jail authorities to produce him on the next date of hearing. On the last date of hearing, investigation ofQicer had produced the suspect before the court and informed that this court had rejected his bail petition, therefore, the Customs Department arrested him and sent him to customs lack-up. He further informed the court that prosecution needs further investigations from the same, therefore, court may send back him on physical remand, after the hearing, court had granted his physical remand and directed investigation ofQicer to produce him on next date of hearing along with
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progress report. It needs to be pertained here that on last date of hearing above mentioned suspect had appeared before the court along with his counsel and moved bail petition, counsel argued that his client is innocent and has falsely been implicated by the agency in this case. He further argued that there is no evidence available on record against the petitioner neither he have the connivance nor have any knowledge
about the alleged offence and seized goods was replaced by the chowkidar of warehouse, therefore, court may grant him bail. However, Ashiq Ali Anwar Rana, Special Prosecutor for the customs department had argued that on the ground that the accused is deeply involved in illegally and fraudulently removal/ replacement of goods as alleged in the charge sheet, therefore, bail petition may be rejected.
tribunal accepts appeal of seized Suzuki Jimmy case
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ustoms Appellate Tribunal has set aside impugned order and accepted the appeal in seized Suzuki Jimmy vehicle case. The same appeal was Qiled by Habib Ullah against deputy director, Intelligence & Investigation-FBR Faisalabad and others. Omer Arshed Hakeem, Member Judicial bench-II, heard the arguments from both parties which they submitted before the tribunal, same appeal was decided with remarks that impugned order is not according to law and set aside.
According to details, the staff of Customs Intelligence and Investigation, Khushab, on the credible information was Suzuki Jimmy vehicle. After matching data with Excise and Taxation department the same vehicle was seized under the relevant law. The driver also failed to produce any legal documents regarding import of vehicle and section 2 (kk) of Customs Act applied by the department for further investigation. After show cause notice, adjudication proceeding were culminated by the authority and declared that Suzuki Jimmy is conQiscated out rightly and show cause notice is established. Being aggrieved from the impugned order, ap-
pellant Qiled the case before the Customs Appellate Tribunal with grounds that impugned order is passed against the facts and without out consideration of law. Appellant also produce documents showing lawful import of vehicle and appeal to suspend the order passed by the adjudication authority. On the other side, respondent denied the allegations and Qiled appeal against rejection of case. After hearing the arguments from both sides, Customs Appellate Tribunal has decided the case with remarks that impugned vehicle is imported legally, Order in Original (ONO) is set aside and appeal is accepted. Meanwhile, Cus-
toms Appellate Tribunal has set aside impugned order and accepted the appeal in seized Toyota Hilux double cabin vehicle. The same appeal was Qiled by Payo Khan against additional collector adjudication and others. Muhammad Shabbir Gujjar, member judicial bench-I, heard the arguments from both parties which they submitted before the tribunal, same appeal was decided with remarks that impugned order is not according to law and set aside. According to details, Superintendent, Anti Smuggling Organization Customs Collectorate, Multan, on the credible information was impounded Toyota Hilux double cabin.
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World Customs
Experts urge Africa to tax greenhouse gas emitters
CAPE TOWN: Climate change experts called on African governments to put in place carbon pricing regulation to earn taxes from greenhouse gas emissions. El Hadji Diagne, Lead Negotiator for Climate Change Markets, said in Nairobi that carbon pricing is an opportunity that the continent could not afford to loss. “Put regulation framework in place to allow carbon pricing as a means of bringing down emissions and drive investment into cleaner options,” Diagne said during the 10th African carbon Forum in Nairobi.
Tuesday April 24, 2018
customs seizes cigarettes smuggled from china
kSA plans to keep its May crude exports below 7m
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he Bureau of Customs (BOC) seized P18.5 million worth of cigarettes smuggled from China into the Manila International Container Port. In a statement on Monday, April 16, the BOC announced it intercepted a 40-foot container with the cigarettes Agents from the X-ray Inspection Project (XIP) had discovered irregularities in the shipment’s x-ray image. “The shipment consigned to Marid Industrial Marketing located at 2090 Batangas Line, Paco, Manila was declared as 890 cartons of industrial artiQicial fur texture but upon examination it was discovered to contain 914 cartons of cigarette brands Jackpot, Fortune, John, Marvels, and U2,” Customs Commissioner Isidro Lapeña said in the statement.
Holland’s exports grow relatively faster than eu ones he value of Dutch exports rose by 10% or €43.5bn to €469bn in 2017, with exports to non-EU countries increasing at twice the rate as those to EU member states, the national statistics office CBS reported on Friday. Exports to Russia and South Korea were particularly strong, the CBS said. The value of exports to countries outside the EU last year was 16% higher year-onyear while the value of exports to EU countries rose 8%. In absolute terms, the value of exports to the EU was €25bn higher than in 2016. Exports to non-EU countries gained €18.5bn. Dutch exports to non-European countries now represent 29% of the total compared to 23.5% in 2008, rising in 41 of the Netherlands’ 45 markets of €1bn or more. Portugal was the only EU member state in the 10 fastest-growing Dutch export markets. –CB Report
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According to the BOC, the cigarettes arrived from China. Documents showed the shipment was processed by broker Carme Ann Rollon, who faces revocation or suspension of her accreditation. The shipment will now be subject to seizure and forfeiture proceedings for violation of Republic Act No. 10863 or the Customs Modernization and Tariff Act. Meanwhile, State-run National
Food Authority (NFA) is allocating around P6.12 billion for the procurement of the 250,000 metric tons (MT) of rice as part of the emergency importation via the government to government (G2G) scheme. NFA is set to send the letter of invitation to the governments of Thailand and Vietnam for the supply of 250,000 MT of 25 percent brokens long grain white rice well-milled.
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hina has issued its latest round of import permits for scrap paper and plastics, and approved volumes remain particularly low on the plastics side. Meanwhile, a separate data set shows stark year-over-year declines in imports during the first two months of 2018. The most recent permits, the 10th round this year from China, were issued Monday. They approve the import of
649,642 metric tons of recovered fiber and 1,708 metric tons of scrap plastic. That brings the total approved tonnages for the year to 9,665,227 metric tons of scrap paper and 48,390 metric tons of scrap plastic. Import permits allow companies to bring in a certain quota of material. Permits are issued in batches periodically throughout the year, often at twicemonthly intervals. –CB Report
audi Arabia the world’s top oil exporter, plans to keep its crude oil shipments in May below 7 million barrels per day (bpd) for the 12th consecutive month, the Saudi Energy Ministry said. Saudi Arabia has been pumping below its OPEC target since January and reducing its crude shipments, particularly to the United States, as it turns its focus to cutting exports in an attempt to drain global oil stocks. The ministry said in a statement that “Allocations to international customers were kept under 7 million barrels a day despite nominations coming in higher than the previous month as demand picks up seasonally.” It gave no details on its production plan for May. The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia have agreed to maintain oil output cuts until the end of 2018 aiming to reduce global
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inventories and boost oil prices. OPEC has made the Qive-year average its main target and managed to reduce the glut to around 74 million barrels above that benchmark, from above 300 million when the cuts began in 2017. A spokesman for the energy ministry said that Saudi Arabia “reiterates its steadfast commitment to restoring inventories back to their normal levels. Meanwhile, This 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 final 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 financial 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.
iBfD Africa tax Symposium comes to kenya BFD Africa Tax Symposium has become Africa’s key tax event. An annual initiative of the autonomous think tank the IBFD Centre for Studies in African Taxation (CSAT), the Africa Tax Symposium offers a platform for ongoing discussion about international tax developments and issues as they relate to Africa. The key topics at this year’s symposium will include the impact of the Multilateral Instrument on bilateral tax treaties; the challenges of the digital economy in an African taxation context; transfer pricing and indirect tax challenges in Africa; and global exchange of information and tax transparency in the post-BEPS era. The sym-
posium will be conducted in English, and simultaneous translation into French will be provided. “Of all of the events around the world focusing on recent developments in international taxation, there are very few that explore these developments within an African taxation context, and that is what makes this event very unique,” states Belema Obuoforibo, Director of the IBFD Knowledge Centre. “The Africa Tax Symposium is one important way IBFD works to realize its goals of building tax expertise in the region by discussing well-researched opinions and exploring practical solutions that work within an African context.–CB Report
Brazil to increase capacity to help Venezuelan migrants
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razil is increasing its capacity to help migrants crossing the border from Venezuela to escape the economic and political crisis affecting their country. The Social Development Ministry said Wednesday it is building 11
shelters in the northern state of Roraima where migrants will receive temporary housing, medical treatment and meals. The shelters will accommodate 500 people each and are expected to be ready by the end of May. More than 50,000 Venezuelans have already crossed the border and are occupying already existing shelters or sleeping in tents or on park benches.
The Roraima government has asked the Supreme Court to temporarily close the border because the state’s health, housing and education services are overwhelmed. Meanwhile, Brazilian trade delegation will arrive in Cairo next week to discuss ways of boosting commercial relations between Egypt and Brazil, Head of the Cairo Chamber of Commerce (CC) Ibrahim al-
Araby said He said that the delegation will include representatives of different Qields, adding that bilateral meetings between the representatives and their Egyptian counterparts will be held to mull boosting ties. During its visit, the delegation will be briefed on the investment opportunities available in the Egyptian market and the incentives presented to foreign investors.
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Bangladesh to start importing LNG in mid April DHAKA: Crippling gas supply shortages will soon be a thing of the past in Bangladesh as the country is about to start importing LNG, with the first cargo scheduled to arrive by mid-April. Though LNG imports will bring some relief, increases in gas-fired power generation capacity are likely to be limited to 1.0 GW in 2018, and 1.4 GW in 2019.
Shipping Activity at port Qasim hipping activity remained brisk at the Port where five ships including DA Kang, Da Dan Xia and Tiamat Gas carrying General cargo and LPG were arranged berthing at Multi purpose Terminal and Engro Vopak Terminal. While three more ships, White Purl, Khor Gas and Arctic Aurora with LPG and LNG also arrived at outer anchorage of Port during last 24 hours. A total of nine ships namely, Mehun, MSC AlGhero, DA Kang, Da Dan Xia, Pacific Talent, Azizi, Ruby Star, Tiamat Gas and Corona were occupying PQA berths to load/offload Containers, General cargo, Soya Bean seeds, Coal, LPG and Palm oil respectively during last 24 hours. A cargo volume of 90,378 tonnes, comprising 47,780 tonnes import cargo and 42,598 tonnes export cargo inclusive of containerized cargo carried in 3,906 Containers (TEUs), (1,664 TEUs imports and 2,242 TEUs exports) was handled at the Port during last 24 hours. Container vessel MSC Al-Ghero sailed out to sea
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Ports & Shipping
Qatar’s non-oil exports touched R5.6 billion in 2018 DOHA
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atar’s non-oil exports jumped by 15.1% to reach QR5.64bn in the Qirst quarter of 2018 compared to the QR4.9bn recorded in the same period last year, according to Qatar Chamber’s latest monthly report. The report said the total value of non-oil exports in March 2018 reached QR1.4bn, compared to QR1.8bn in March 2017, or a 22% decrease. Qatar Chamber said the report was based on the 2,876 certiQicates of origin issued in March 2018 by its Research & Studies Department and Member Affairs Department. In March, Qatar exported goods and services to 57 countries, including 11 Arab countries, including the GCC; 10 European countries, including Turkey; 16 Asian countries, excluding Arab countries; 15 African countries, excluding Arab countries; three countries of North America; and one country each in South America and Australia. Meanwhile, Qatar is looking
at India as an important investor destination. The launch of Qatar’s worldclass port will further bolster the trade relations between the two countries, Minister of State for Foreign Affairs, H E Sultan bin Saad Al Muraikhi has said . The Minister was formally opening the inaugural edition of Qatar India Business and Investment Conference (QIBIC) here yesterday in the presence of India’s Minister of State for External Affairs, MJ Akbar. Qatar has deeprooted and bilateral trade relationships with India and the time has come to
take India-Qatar partnership to new high level. The deep knowledge of Indian businessmen in the Qatari market will be an important factor to taking these bilateral relations to the next level. The Minister said the conference comes at a time when the State of Qatar is opening up to foreign investment and expanding its business partners, in order to strengthen its position as a regional investment and commercial center providing investors with incentives and facilities to beneQit from local and regional markets.
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Russia SpVc imports up 19% in Q1 ussia’s SPVC (solution polyvinyl chloride) imports rose 19% in the January to March 2018 period year on year to 5,700 tonnes, according to MRC’s DataScope report. Russian producers managed to increase their SPVC exports by 50%, the data showed. March SPVC imports grew to 1,900 tonnes from 1,200 tonnes a month earlier. Thus, overall imports of resin to Russia totalled 5,700 tonnes in January-March 2018, compared to 4,800 tonnes a year earlier. At the same time, Russian producers were forced to ship resin for export more actively this year, export sales increased 1.5 times. Chinese producers have been the key foreign SPVC suppliers to Russia for the past several years. March imports of Chinese acetylene process resin grew to 1,900 tonnes from 800 tonnes a month earlier. Overall imports of resin from China were 5,100 tonnes in the first three months of 2018, compared to 3,900 tonnes a year earlier.
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iran’s condensate petrochemical exports decrease on Thursday morning, while four more ships, Mehun, Da Dan Xia, Pacific Talent and Corona were expected to sail on same day in the afternoon. Five ships MSC Susanne, Bar Bounty, Endeavour Strait, Arctic Aurora and Nagig-8 Sky scheduled to load/offload Containers, Sand, Coal, LNG and Palm were expected to take berths at QICT, MW-1, MW-4, PGPCL and LCT respectively. Meanwhile, Six ships Northern Monument, Mehun, Busan Trader, Ruby Star, Sea Fortune and Thomson Gas carrying Soya Bean Seeds, General Cargo and LPG were allotted berths at Qasim International Container Terminal, Grain & Fertilizer Terminal, Multi Purpose Terminal and Engro Vopak Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority. –CB Report
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ran’s non-oil exports, including condensates have witnessed a 6.6-percent increase during the last Qiscal year (ended March 20). Iran’s Customs Administration said that the country’s non-oil exports, including gas condensate, reached $46.93 billion during the last Qiscal year compared to $44.42 billion of exports in the preceding year. The volume of the exported goods reached 132.3 million tons in the 12-month period. The country includes gas condensate and some raw hydrocarbon products, like propane, butane, etc. in its non-oil export basket. During the period, the country exported $7.079 billion worth of condensate, 3.28 percent less yearon-year. Iran’s petrochemical ex-
ports also witnessed a fall by 8.3 percent in terms of value, meanwhile export of industrial products registered an increase by 22.3 percent year-on-year. LiqueQied natural gas ($2.495 billion), liqueQied propane (worth $1.475 billion),
light oils and products (excluding gasoline) worth $1.327 billion and methanol (worth $1.178 billion) were among Iran’s top exported goods in the 12-month period. China was the main importer of the Iranian goods during the period.
Iran’s non-oil exports to China registered a rise by 8.3 percent and stood at $9.065 billion. Meanwhile, Iran’s non-oil foreign trade in the last Qiscal year (ended March 20, 2018) stood at $101.23 billion, indicating a 15.5% rise compared with the year before. Exports during the 12-month period hit 132.3 million tons worth $46.93 billion, indicating a 6.56% rise year-on-year, the latest report by the Islamic Republic of Iran Customs Administration reads. Imports amounted to 38.73 million tons worth $54.3 billion, up 24.31% YOY. The key driver of growth in imports was the higher inflow of basic goods, auto parts and capital goods. Exports of industrial goods saw a rise of 22.27% last year while exports of petrochemicals and gas condensates experienced a decline of 8.29% and 3.28%, respectively.
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Four accused arrested in Saa Pani scam LAHORE: As part of its investigations into 56 public companies of Punjab government, National Accountability Bureau Lahore (NAB) has arrested four accused of embezzlement in the Punjab Saaf Pani Company (PSPC). The arrested accused persons were identified as Nasir Qadir, Dr Zaheerul Din, Muhammad Saleem and Muhammad Masood Akhtar. The accused were involved in corruption of millions of rupees and substantial evidence has been have found against them, NAB said.
Tuesday April 24, 2018
Business
‘pak-Russia to promote South-Asian peace, stability’ ISLAMABAD
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ederal Minister for Science and Technology Rana Tanveer Hussain said, strong bilateral trade and economic ties between Pakistan and Russia would help to promote peace and stability in South Asia. The minister is currently visiting Moscow and extended his felicitations to the Russian President Vladimir Putin on his resounding victory in the elections, said a press releases received here. He along with senior ofQicials of Ministry of Science and Technology of Russian Federation and other Shanghai Cooperation Organisation
iRSA releases 102,300 cusecs water KARACHI
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(SCO) member States presented congratulations to the Russian head of state. Rana Tanveer said that friendly relations with Russia remain a high priority for the foreign policy of Pakistan and urged that there was a consensus in Pakistan
11.57 million cotton bales reach ginneries, arrivals up by 7.9 percent
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he Indus River System Authority (IRSA) on released 102,300 cusecs water from various rim stations with inflow of 111,700 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1395.81 feet, which was 15.81 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 29,000 cusecs while outflow as 30,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1086.90 feet.
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on the need to further strengthen and diversify relations with Russia. Meanwhile, in another meeting with Russian Minister for Education & Science Olga Yuryevna, Federal Rana Tanveer said that Pakistan wants to forge a long term and broad based partnership
with Russia, especially in the Qield of trade, energy, defence, security, peaceful use of energy, culture & education. He recalled that Qirst ever meeting of the Chairman State Duma to Pakistan in December 2017 was a milestone in PakRussian ties. He also thanked the Russian counterparts for offering 16 educational scholarships to Pakistani students. Federal Minister further elaborated to explore the possibility of establishing joint Study Programmes in numerous universities of Pakistan. Rana Tanveer, proposed Russian Minister for Education & Science, Olga Yuryevba to establish Pakistan-Russia Centre for Science and Technology Cooperation in Pakistan. He also proposed to establish a common fund of SCO for development of Science and Technology to support those countries that lag in the Qields of Science and Technology.
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MULTAN
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eed cotton (Phutti) equivalent to 11.579 million bales have reached ginneries across Pakistan till April 15, registering an increase by 7.94 percent compared to corresponding period of the last year. According to a fortnightly report of the Pakistan Cotton Ginners Association (PCGA) released to media, out of total arrivals, over 11.574 million bales had undergone the ginning process.
Arrivals in Punjab were recorded at 7.3 million bales recording a percentage increase of 5.56 per cent. Arrivals in Sindh were recorded at 4.25 million bales, some 12.31 per cent higher compared to corresponding period of the last year. Total sold out bales were recorded at 11.2 million bales, including 10.99 million bales bought by textile mills and 216,615 bales purchased by exporters. Exactly 369,869 bales were still lying with the ginneries as unsold stock. Sanghar district of Sindh continued to remain on top with cotton
arrival figures of 1.383 million bales till April 15. Rahimyar Khan, Bahawalnagar and Bahawalpur districts in Punjab secured the second, third and fourth place by recording arrivals of 1,072,790 bales, 028,425 bales and 1,027,263 bales, respectively. Exactly fourteen ginning factories, including ten in Sindh and four in Punjab, were operational in the country. The PCGA said that the report did not include cotton arrivals at district Kasur as statistics from the district did not reach the PCGA.
Automobile sale rises 15.6% in 9 months ISLAMABAD
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ale of cars in the country increased by 15.62 per cent during first three quarters (July-March) of fiscal year 2017-18 compared to same period of the preceding year. Sale of cars rose to 161,371 units in July-March (2017-18) compared to 139,570 units during same period of the year 2016-17 Sale of cars during March 2018 also increased by 3.78 per cent when compared with the sale during March 2017, however the sale decreased by 0.2 percent when compared with that of February 2018. According to latest data released by Pakistan Automobile Manufacturers Association (PAMA), as many as 18,988 cars were sold in March 2018 as compared to 18,295 units in March 2017 and 19,027 units in February 2018. The breakup figures show that 32,074 units of Honda civic and city were sold during Jul-Mar 2017-18 as compared to the sale of 28,120 units during same period of the preceding year. Toyota Corolla cars’ sale however witnessed negative growth of 6 per cent as it went down to 38,244 units in July-March 2017-18 from 40,694 units in same period of previous year.
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fiA arrests 13 ‘human traffickers’ from faisalabad, Sargodha FAISALABAD
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he Federal Investigation Agency (FIA) has arrested 13 suspected human trafQickers from Faisalabad, Sargodha and other areas of the province, FIA Faisalabad region Director Chaudhry Sajid Akram said. The suspects used to deceive immature people by promising them
entry into countries like the United Kingdom, United Arab Emirates, Kingdom of Saudi Arabia and other European as well as Gulf countries. The suspects were identified as Muhammad Sarwar, Abid Mehmood, Usman Ghani, Imran, Ahmed Husain, Muhammad Qasim, Muhammad Siddique, Naeem Shuja, Asif Mehmood, Babar Ali and Syed Basharat Ali. The FIA acted in response to written complaints against the human
traffickers by the people who were already tricked, said the FIA official. Travel documents and passports were recovered from the possession of the suspects and the agency, after registering a case, has launched an investigation. Meanwhile, Federal Investigation Agency (FIA) Anti-Corruption Wing approved first information report (FIR) against a police inspector for allegedly taking a bribe from a citizen.
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FDI increases to $2.09 billion in 9 months KARACHI: The net inflow of foreign direct investment (FDI) into Pakistan has registered growth of 4.4 percent to $2.09 billion during July – March 2017/2018 as compared with $2 billion in the corresponding period of the last fiscal year. According data issued by State Bank of Pakistan (SBP) on Tuesday the gross inflows of FDI increased by4.3 percent to $2.63 billion during first nine months of the current fiscal year as compared with $2.52 billion in the corresponding period of the last year. However, the outflows was recorded at 3.8 percent to $537 million as compared with $517 million. The outflows from capital market recorded decline during the period. The outflows witnessed decline of 73 percent to $93.3 million as compared with $346.3 million.
foreign investors urge govt to withdraw super tax
Tuesday April 24, 2018
Chambers
icci calls for withdrawal of hike in commercial gas price
ISLAMABAD
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he foreign investors in Pakistan have recommended the government to withdraw super tax and reduce the sales tax rates at 13 percent in the upcoming budget for the next fiscal year. “Tax burden on existing taxpayers is increasing, which is one of the major concerns of the foreign investors who made investment in Pakistan,” the Overseas Investors Chamber of Commerce and Industry (OICCI) President Bruno Olierhoek said in a press briefing. He further said that Pakistan’s ranking in Ease of doing business has ranked a lowly 147th among 190 economies, which is worrisome. The OICCI has noted that government had increased its tax
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collection by imposing taxes on existing taxpayers of the country. It has recommended the government to broaden the tax base of the country by bringing retails and agriculture sector in tax net, as these sectors contribute more to the GDP of the country. The OICCI has asked the government to withdraw 3-4 percent super tax imposed some three to four years back to help the Internally Displaced Person (IDPs). “The government had assured us that super tax will be imposed only for one year. However, it is continued from last few years,” said OICCI’s sub committee on taxation chairman Irfan Wahab Khan. In its proposals the OICCI suggested to reduce corporate tax rate to 25 percent in line with the regional practice where the rate is 22 percent. Similarly, uniform sales tax rates all over Pakistan initially should reduce at 13 percent as in Sindh and then to 10 percent in line with the average rates in the region.
ISLAMABAD
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heikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry has called upon the government to withdraw manifold hike in commercial gas price as it would increase inQlation and bring more problems to the common man. He said prime minister should take notice of this situation and order for withdrawal of increase in commercial gas price in the larger interests of the general public. He said was talking to a delegation of Islamabad Naanbai and Small Restaurants Association that visited ICCI led by its President Sarfraz Abbasi. Sheikh Amir Waheed said that bringing price of commercial gas at par with LNG price was against the interests of citizens as it would add to their difQiculties. He said that naan houses have been using commercial gas for the last 30 years and all of a sudden charging them price of LNG was totally unjustiQied. He warned that this decision would affect the vote bank of the ruling party in the coming elections. He
said charging new price on new commercial gas connections could be acceptable, but it was unacceptable to charge new price on old commercial gas connections and stressed upon the SNGPL to revise its decision. Sarfraz Abbasi, President, Islamabad Naanbai and Small Restaurant Association said that most of the customers of naan
houses belonged to common man and if decision of charging LNG price from naan house was not taken back, it would deprive common man of naan and roti as it would double the price of these staple food items. He cautioned that the decision would invoke a strong reaction from the general public and urged upon the government to
envoys visits Rawal international expo 2018 RAWALPINDI
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he Ambassadors of different countries including Nepal Afghanistan, Tunisia, Spain and Canada paid a visit to the Rawal International Expo 2018 organised by Rawalpindi Chamber of Commerce and Industry (RCCI) at Ayub National Park Rawalpindi. Sewa Lamsel Adhikari, Ambassador of Nepal inaugurated the Pet show at Rawal Expo 2018. She inquired about the different breeds of dogs, Cats and birds and enjoyed the show. She appreciated RCCI for organizing such a healthy activity for the visitors and families. Afghan envoy Dr Omar Zakhilwal, Canadian High Commissioner Perry Calderwood and Tunisian envoy Adel Alerbi while visiting different stalls,
appreciated the role of RCCI in promoting trade activities through exhibitions. The envoys took keen interest in Auto Show where vintage and classic cars were placed to attract large number of children and families of the cities. They enjoyed the musical evening where local artists performed their talent in
comedy and singing. They assured their full cooperation and assistance for promoting trade delegations between the chambers and replicate the same in their respective countries. RCCI President Zahid Latif Khan welcomed the guests and gave a short brieQing on Rawal International Expo 2018.
withdraw it immediately. Muhammad Naveed Malik Senior Vice President, Nisar Mirza Vice President and Khalid Chaudhry former Senior Vice President ICCI also spoke at the occasion and called upon the government to withdraw the decision of increasing the price of commercial gas to save the common man from further troubles.
fpcci urges fBR to extend tax credit scheme deadline cting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Syed Mazhar Ali Nasir has urged the Federal Board of Revenue (FBR) to extend the tax credit facilities to the investment made in factory building and other manufacturing related infrastructure and validity of the tax credit scheme be increased from 30th June, 2019 to 30th June, 2021. “As per section 65E of Income Tax Ordinance 2001, tax credit is admissible/restricted to only for investment made in plant and machinery and undertaking of a new project also involves investment in factory building and development of manufacturing related infrastructure; therefore, such types of investments should also be granted tax relief,” he said.
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ANF holds commanders conference RAWALPINDI: The Anti Narcotics Force (ANF) held force commanders conference here at Headquarter. ANF Director General Major General Musarrat Nawaz Malik presided over the conference which was attended by force commanders from all ANF Regional Directorates and Senior Staff Officers of ANF. DG ANF expressed satisfaction on the overall organizational performance of ANF and reviewed the progress on counternarcotics operations, international commitments and drug abuse prevention during the conference.
Tuesday, April 24, 2018
CUSTOMS BULLETIN
Removal of dangerous materials: customs official Dost involved in ‘financial terrorism’ MULTAN iMRAn ALi
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he business community of South Punjab is seriously aggrieved by nonprofessional behaviour of Principal Appraiser Dost Muhammad, who is currently posted at R&D Section of the Appraisement East and using different methods to encourage smuggling and discourage legal importers, causing huge loss to the national kitty. It was stated by All Pakistan Anjuman-e-Tajiran Khawaja Chairman Suleman Siddiqui while talking to Customs Today on transshipment mega scam. Khawaja Suleman said that R&D Department is responsible for checking documents and data of consignments cleared through the green channel, yellow channel and TP, but Dost Muhammad did not do anything to stop alleged smuggling through these channels. He said that some corrupt customs ofQicials like Appraiser Dost Muhammad were allegedly operating their parallel smuggling networks for illegal clearance of contraband items like dangerous chemicals and betel nuts. He said that some corrupt customs ofQicials were serving at key
posts and a few high ups of the Federal Board of Revenue (FBR) have given them ‘free hand’ to carry out corrupt practices. It is unfortunate that hundreds of customs ofQicials are facing inquiries on serious charges of corruption and they are still posted on key posts for manag-
ing their smuggling network which is continuously causing huge revenue loss to the national exchequer. The customs staff deputed to clear consignments was allegedly involved in illegal clearance of import shipments and they adopted new means of corruption due to in-
efQiciency of the administration. He said that he was disappointed over the posting of corrupt ofQicials in the Customs Department, including appraisers, examiners, assistant collectors, deputy collectors, additional Collector and others. Involvement of customs ofQicials in the smuggling
is like Qinancial terrorism in the country, he said, adding that “every kind of smuggling activity is devastating the national economy.” Khawaja Suleman said that at Karachi Port, the staff was involved in clearance of banned and prohibited items which might cause threat to public safety. Unfortunately, the government has failed to implement any sound policy against corrupt ofQicials like Dost Muhammad in the Customs Department and complaints by several importers and businessmen revealed that the Customs high ups had not taken any action against them. He said the corrupt ofQicials were working on key positions after bribing to their high ups and the transshipment mega scam would have been avoided. It is an open secret that smugglers get away with the help of the customs appraisers and they assist them just for the sake of bribery and they blackmail genuine importers. He said that major manufacturers in Pakistan cannot compete with the kind of prices available in the market for the imported raw material. He said, “We are also responsible for giving bribe to corrupt ofQicers in order to get the legal work done”. He added that the FBR did not take Qirm action against its corrupt ofQicials even after getting concrete evidences and NAB had also failed to curb corruption in the country.
Deputy collector Saima serves notice on owner of nDp vehicle FAISALABAD
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he Customs Adjudication Deputy Collector Saima Ayaz issued a show cause notice to owner of foreign origin Corolla Saloon car which was also impounded by the customs Anti Smuggling Organization Sarai Muhajir. Sources told Customs Today, that Anti-Smuggling Organization of Sarai Muhajir team
intercepted a Corolla car bearing registration no: MNX-8800 near M.M Alam Road Toll Plaza Sarai Muhajir. The team asked the owner of the vehicle, who introduced himself as Ghulam Shabbir to show documents regarding the legal import of the vehicle but he could not produce the same. So the ofQicials took into possession of the vehicle under customs bylaws and forwarded the case to Customs Adjudication for further legal action. Now Deputy Collector Saima Ayaz issued a notice to the accused on the violation of Section 10-A 89(1) and 156(1) of the Customs
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Act-1969 punishable under Section 156 (1) 89 of the Custom Act-1969 and summoned them to explain the cause as to why the said vehicle should not be conQiscated under aforementioned provisions of bylaws. However the adjudication has directed the accused to Qile reply on the next date of hearing. The seizing agency has also been directed to Qile reply in the respective case. The adjudication authority also directed Customs Superintendent Sardar Muhammad Chaudhary to attend the hearing on the scheduled date along with the relevant record.