Thursday, 26 April 2018

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Karachi, Thu April 26, 2018

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he tax amnesty scheme has been launched to provide an opportunity to the overseas Pakistanis to bring their assets back to Pakistan and come into the tax net, Federal Board of Revenue (FBR) Chairman Tariq Mahmood Pasha said. As per agreement with Organization for Economic Cooperation and Development (OECD), exchange of information about the Qinancial bank transactions are going to be shared from this September whereas all

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other members of the OECD have already started sharing data and information, he said.

Almost in mid-September 2016, Pakistan became the 104th jurisdiction to join the most powerful multilateral instrument against offshore tax evasion and avoidance by signing the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The convention is the most powerful instrument for international tax cooperation. It provides for all forms of administrative assistance in tax matters: exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection.

Islamabad AFU gets Rs05m extra Customs Duty within two weeks of April

DG Valuation revises customs values of ceramic, porcelain sanitary ware

FTO remands back tax refund appeal for hearing

Adjudication-II retrieves evaded taxes from two defaulters thru notices

Peshawar Customs impounds NDP items & vehicles worth millions of rupees

AFU Islamabad received Rs5 million additional revenue of Customs Duty | See pAge 02 |

DG Valuation has revised the customs values of ceramic / porcelain sanitary | See pAge 03 |

FTO has remanded back a case filed by Rana Akhter, a resident of Sargodha | See pAge 04 |

Adjudication-IIhassentashow-causenotice to a defaulter Cos & recovered Rs4.12m | See pAge 09 |

ASU of the Customs House Peshawar has taken into possession NDP goods | See pAge 16 |

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FBR proposes hike from five to 10pc duty on luxury items in upcoming budget Thursday, April 26, 2018

ISLAMABAD: The Federal Board of Revenue has suggested an increase of five to 10 percent duty on cigarettes and imported food, electronic items and use of luxury articles including milk powder, chocolates, energy drinks, pet foods, cheese, Juicers, blenders, air-conditioners, microwave ovens, electric ovens, LCD TVs, toys and all kinds of cosmetics in the coming budget of Financial Year 2018-19.

Islamabad

islamabad Afu gets Rs05m extra customs Duty within two weeks of April

ISLAMABAD

ISLAMABAD

M fAiZAn

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ariation in the figures of tax receipts (net) of direct and indirect taxes between the Federal Board of Revenue and the State Bank of Pakistan is Rs16099.93million. The lapse was pointed out after the scrutiny of the record of the State Bank of Pakistan maintained by Main Office, Karachi, and Director Research and Statistics, Federal Board of Revenue. As per reconciliation statement at the micro level for and up to the month of June (Final) 2017 revealed that there was a variation of Rs16099.93million between the Federal Board of Revenue reconciled figures and the State bank of Pakistan figures. Under the head of taxes on Income, collection figures of the State Banks showed Rs1185726.93million while collection figures of the Federal Board of Revenue reflected Rs1194113.00million and the difference is Rs8386.09million. Likewise under the head of customs collection figures, the Federal Board of Revenue posted Rs439884.48million million while collection figures of the Federal Board of Revenue are Rs404572.00million and difference is of Rs35312.48million.

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he Air Freight Unit (AFU) Islamabad received Rs5 million additional revenue of Customs Duty (CD) against an assigned proportional revenue target during Qirst two weeks of April FY17-18. According to details explained by Nisar Ahmad Phularwal, Additional Collector, AFU Islamabad that the AFU collected Rs116.05million as CD against an allocated proportional revenue collection target of Rs111.77million during Qirst two weeks (1st to 14th) April FY 17-18.

He added that the AFU demonstrated 4% achievement against an earmarked revenue target for above said period while it posted 53% growth through collection of revenue during Qirst two weeks of current month against the same period of corresponding FY16-17.

The Additional Collector assured that the AFU has been assigned a revenue collection target of Rs280million for the current month of April FY17-18 which will be easily chased. He further said the AFU received Rs304.08million revenue during the month of March FY1718 against an earmarked target of Rs275million. He informed the correspondent that the AFU received Rs29million of additional revenue against the target under the head of CD during March FY17-18.

Difference of tax receipts between fBR and SBp stands at Rs16099.93m

Telling about the month-wise revenue details of CD, he said the AFU generated a revenue of Rs295million of CD during the month of February FY17-18 against an earmarked target of Rs222.24million. He added that, during the month of January FY17-18, the AFU earned a Rs216.91million under the same head against an assigned target of Rs275.50million.

Nisar said the AFU collected Rs366.93million CD against an allo-

cated revenue collection target of Rs250.36million during the month of December FY17-18.

The Additional Collector added that the AFU got Rs284.77million as CD against an earmarked target of Rs228.61million during the month of November Fy17-18.

The AFU fetched Rs264.16million under the head of CD against an assigned target of Rs215.88million during October FY17-18 whereas the AFU Islamabad earned

Rs154.77million of CD against an allocated target of Rs224.04million during the month of September FY17-18 as well as the AFU received Rs196.97million of CD against an earmarked revenue collection target of Rs224.15million during the month of August FY1718.

The AFU generated Rs156.57million under the head of CD against an assigned target of Rs135.34million during the month of July FY17-18.

iHc seeks record of cases involving customs Appellate tribunal

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slamabad High Court directed parties to submit related record while hearing customs matter involving Customs Appellate Tribunal and Model Collectorate of Customs, Islamabad. IHC division bench comprising Justice Athar Minallah and Justice Hassan Aurangzeb heard the cases and issued directives.

The bench had also dated in ofQice

hearing of matters Qiled by Directorate General Intelligence and Investigation against Malik Muhammad Ajmal Khan. M/s Comfort Sales Corporation had Qiled case against ATIR and customs department. M/s Comfort Sales Corporation had Qiled case against ATIR and customs department. M/s Comfort Sales Corporation had challenged the act of recovery of said amount by commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal

had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty. M/s Comfort Sales Corporation had prayed the court that FBR ofQice had issued a recovery notice to the company which did not hold lawful grounds. 1The 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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Tax evasion of Rs13.44m committed by Aslam Qaim Associate uncovered KARACHI: The Directorate, Customs Post Clearance Audit, has detected the evasion of duties and taxes of Rs13.44million by M/s Aslam Qaim Associate, it is learnt here. Sources told Customs Today that M/s Aslam Qaim Associate imported a consignment of fancy lights, charging ceiling fans, and got them cleared from the PICT Karachi vide GDs on December 22, 2017 by paying customs duty very low at six percent after claiming the benefit of the SRO 552/2007. However the subject items were correctly classifiable under the PCT 3614.2407 attracting customs duty at 10 percent and income tax at eight percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs13.44million.

M/s Sn company moves SHc for restoration of sales tax return number

Thursday April 26, 2018

Karachi

Dg Valuation revises customs values of ceramic, porcelain sanitary ware

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he Sindh High Court (SHC) has issued notices to the Customs Department and deputy attorney general, directing them to file their respective para wise comments on a constitutional petition filed by M/s SN Company seeking restoration of its sales tax return number. A two-member bench, headed by Justice Munib Akhtar, was hearing the petition. During the hearing, counsel for the petitioner submitted that it is engaged in the lawful manufacturing of paper tube and sale/ supply to various clients which are in textile sector.

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customs preventive foils bid to smuggle mobile at JiAp KARACHI

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akistan Customs Preventive has foiled a bid to smuggle cellular phones worth millions of rupees at the arrival lounge of the Jinnah International Airport (JIAP).

According to the details, the higher authority received an authentic information regarding the smuggling of several expensive cellular phones worth millions of rupees through passenger coming from foreign country. A team was constituted and was instructed to enhance the surveillance as well as to carry out strict checking at both arrival and the departure lounges of the Jinnah International Airport. On suspicion the team of Customs Preventive deputed at the arrival lounge of JIAP intercepted a passenger who reached Karachi through Emirates flight no: EK 606 from Dubai.

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KARACHI

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he Directorate General of Customs Valuation has revised the customs values of ceramic / porcelain sanitary wares vide Valuation Ruling No: 1282/2018 under Section 25A of the Customs Act-1969.

A number of representations were received in Directorate General that sanitary porcelain/ sanitary wares of different types and brands were assessed at lower values. Therefore, an exercise was undertaken to determine the customs values of ceramic / porcelain sanitary wares under Section 25-A of the Customs Act, 1969, to reQlect the prices prevailing in the international market. A number of stakeholders meetings were held in this Directorate General culminating in a meeting held on February 22, 2018 with importers and representatives of the FBR Qield formations. The importers requested to submit invoices of imports during the last three months, showing factual values. Websites, names and e-mail addresses of known foreign manufacturers of the item ii; question through which the actual current value can be ascertained were also sought. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last ‘four months showing the values of supplies (excluding duty and taxes) to substantiate their contentions. The

representatives of Ms Agility, Ms ABN Enterprises, Ms M. A . W. & Company.

Ms Marachi International, Ms Marosh appeared during the course of stakeholders meetings. Representatives of clearance Collectorate also attended the meetings. The importers contended that their imported items are being assessed at higher values. Method adopted to determine Customs values: Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs values of Ceramic

A number of representations were received in Directorate general that sanitary porcelain/ sanitary wares of different types and brands were assessed at lower values

fBR generates Rs108.40b from oil sector in July-March

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KARACHI

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ederal Board of Revenue’s (FBR) generated Rs108.40 billion from oil sector during the Qirst nine months of the current Qiscal year of 2018, showing 38 percent growth over the last year’s Rs78.60 billion collected during the same period. Tax ofQicials said higher sales tax rates on petroleum, oil and lubricants (POL) products were the major contributors to

the revenue collection during the period. FBR collected Rs89.24 billion on account of sales tax on petroleum products in July-March, depicting a sharp rise of 47 percent as compared to Rs60.64 billion a year earlier. The ofQicials said lower oil prices, in the past, reduced sales tax collection despite higher rates. Oil prices started rebounding during the current Qiscal year, subsequently pushing up tax revenue, they added. FBR levies sales taxes of 21.5 and 27.5 percent on motor spirit and high speed diesel, respectively. The

rates are higher than the normal sales tax rate of 17 percent, and will remain applicable till April 30. Sales tax on kerosene and light diesel oil are, however, 17 percent and 16.5 percent, respectively. The ofQicials said the tax collection was only from domestic supplies of POL products by oil exploration and marketing companies and reQineries. FBR further collected Rs17 billion in lieu of income tax from oil sector during the Qirst nine months of the current Qiscal year, up 16 percent over the same period a year ago.

/ Porcelain Sanitary wares. Transaction value method provided in Section 25(l) was found inapplicable because the requisite information was not available. Identical / similar goods value methods provided in Section 25(5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied on due to wide variation in declared values of subject goods.

customs valuation of steel files revised he customs values of steel files flat bastard (half round/full round) have been revised. Director of Customs Valuation Iqbal Muneeb revised the customs values of steel files flat bastard (half round/full round) vide Valuation Ruling No.1283/2018. Earlier, the customs values of steel files flat bastard (half round/full round) were determined vide Valuation Ruling No.958/2016.

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Three customs officials deputed at Allama Iqbal Airport retire Thursday April 26, 2018

Lahore

LAHORE: Three customs officials performing their duties at Allama Iqbal International Airport retired after completion of their job tenure.

According to details available to Customs Today, three customs officials, Superintendent Chaudary Amjad Lateef of Customs Traffic, Superintendent Mian Ajmal from Customs Export and Superintendent Asghar Ali of Air Freight Unit, were retired.

The Customs Preventive arranged a simple but graceful ceremony in the honor of the retired officers.

customs tribunal accepts fto remands back tax refund appeal partially in appeal for hearing import of kitchenware LAHORE

LAHORE

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he Customs Appellate Tribunal has partially accepted an appeal Qiled by Deputy Director, Directorate Post Clearance Audit, Lahore, against M/s Elahi Traders, Shah Alam Market Lahore.

M/s Elahi Traders imported kitchenware made of plastic from China and got them cleared under the wrong PCT heading. Omer Arshed Hakeem, Member Judicial, heard the case in details and examined the record produced by the parties in the court. The judgment was passed with remarks that the appeal is accepted partially, but not completely, and importer fulfills the basic requirement. M/s Elahi Trader imported kitchenware and

cJp directs to send issue of irregularities in pic to nAB two-member bench of Supreme Court, headed by Chief Justice Mian Saqib Nisar while hearing a suo motu notice against alleged irregularities in Punjab Institute of Cardiology (PIC) in Lahore on Sunday, directed to send the irregularities issue to NAB for the proper probe. The court also ordered to put the name of Member of PIC Board, and Overseas Pakistani Commissioner Punjab Afzaal Bhatti on ECL. The Chief Justice questioned how a dual nationality holder was appointed as the Overseas Pakistanis’ Commissioner in Punjab. Later, the hearing was adjourned till 28th of this month. Meanwhile, the Supreme Court bench while hearing another suo motu case regarding the appointment of permanent VCs in government universities of the province ordered Punjab government to appoint permanent Vice Chancellors within six weeks. –CB Report

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got them cleared under the PCT heading 9617.0020. The department feels that it got cleared wrongly and further duties and taxes are due to be levied on it.

A show cause notice was issued and adjudication proceedings were culminated by the authority. Order was passed with remarks that M/s Elahi Traders evaded Rs234600 that is imposed on it with a penalty of Rs25000. Being aggrieved from the order, an Order-in-Original was challenged before the Collector of Customs (Appeals) who set aside the order and accepted the appeal.

The appellant, not satisQied with the order, challenged the order on the grounds the same order was passed in a mechanical fashion and without the consideration of facts which is liable to be set aside. On the other side, the respondent denied all the allegations and appealed for the rejection of the case.

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he Federal Tax Ombudsman (FTO) has remanded back a case Qiled by Rana Muhammad Akhter, a resident of Sargodha, against the Regional Tax OfQice (RTO) Sargodha. FTO Advisor Mian Munawar Ghafoor heard the case in which counsel for the appellant argued that the RTO Sargodha has not released the refund to the appellant since two years.

He said that the RTO Sargodha has been collecting excessive taxes from the appellant during the last two years. The company approached the ofQicer concerned many times for release of refunds but the department did not entertain his request even after a lapse of a reasonable time.

Finally, the appellant decided to

court rejects bail plea of accused involved in currency smuggling

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ustoms Court of Anti Smuggling and Taxation Court Judge Mohammad Arshad Ali has rejected the bail plea of accused Akhtar Mehmood who is involved in smuggling of foreign currency. Sources told Customs Today that the accused person was arrested from Allama Iqbal International Airport when he was making an attempt to smuggle 15100 US dollars and Chinese currency of 2687 Yuan. The accused was trying to smuggle this currency o Sri Lanka.

Customs Preventive team deputed at

Lahore Airport arrested the accused and asked for relevant documents regarding possession of the currency but he remained failed. Customs Preventive team arrested the accused and after registering a case of money laundering against him forwarded the case to Customs Court. During hearing of the case counsel of the Customs department argued that there sufQicient evidence is available with the customs department that accused has been involved in currency smuggling. –CB Report

approach the Federal Tax Ombudsman (FTO) seeking intervention in the case. The counsel appealed the FTO advisor to direct the commissioner of RTO Sargodha to clear refund claims. The counsel further said that delay in release of refunds puts the burden on the taxpayer adding that the RTO should make audit of the case and release

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

uS to deport 107 pakistanis he United States government has decided to deport 107 Pakistanis languishing in jails on the charges of terrorism, robbery, breaching of immigration laws, sexual harassments, selling of drugs and keeping false citizenship. To this effect, top mandarins of the Interior Ministry in Pakistan and ofQicials of Pakistan Embassy in Washington have completed dialogue with ofQicials of the US Immigration and Customs Enforcement (ICE) Department. The US Department of Homeland Security Immigration and Customs Enforcement (ICE) has

requested the Pakistani embassy to allow a chartered Qlight to Islamabad for deportation of Pakistani nationals. “In the United States of America, during the period from 1996 up to February 2018, some 107 Pakistanis got sentenced on various charges and in the list of criminals, one Pakistani Kashif Nauman, facing charges of terrorism activities, is being deported from the US. The identity veriQication of 55 Pakistanis is in process with our foreign ministry,” revealed senior ofQicials and documents pertaining to the deportation of Pakistanis from US. –CB Report

tDAp committed to address export related issues: secretary

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LAHORE

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he government is committed to address trade related issues of exporters and all stakeholders would be taken on board in this regard. Inamullah Khan, Secretary Trade Development Authority of Pakistan

(TDAP), stated this while talking to a four-member delegation of the footwear sector who called on him at the TDAP. He said the TDAP was endeavoring to facilitate exporters to help enhance level of exports and with the joint efforts of the publicprivate sector would help increase the momentum of the export sector. Adil Hasan, Senior Vice Chair-

man Pakistan Footwear Manufacturer Association (PFMA), apprised the secretary about their trade related issues especially with reference to their participation in the Expo Riva Garda exhibition to be held in Italy in June this year. The secretary gave approval for the footwear sector participation in the fair. The stakeholders thanked the secretary for

encouraging the business community in making improvements of their export mandate. On the occasion, DG TDAP Lahore Mian Riaz Ahmed apprised the businessmen that as per the ‘Emerging Pakistan Vision’, the TDAP had been working to facilitate exporters for better projection of their products through quality control and standardization.

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nder the supervision of Dr Arslan Subuctageen, Director Intelligence and Investigation (I&I), Khyber Pakhtunkhwa (KPK), recovered narcotics worth millions of rupees from a passenger car on G.T. Road, District Nowshera on Tuesday.

According to details, the department has accelerated campaign against smuggling after joining of Dr Arslan Subuctageen as Director I&I, KPK. On a tip-off that a sizeable quantity of narcotics would be smuggled from tribal areas to Punjab in a Toyota Corolla car, Deputy Director Wajid Ali constituted a raiding team.

In pursuance of the said information, the staff of Directorate of Customs Intelligence Peshawar set up a check post near Tarnab G.T. Road District Peshawar. The suspected car was spotted coming from Peshawar side, it was signalled to stop but the driver ignored the signal and sped away.

On chasing, the driver abandoned his vehicle bearing No. LEA-09-2241 and succeeded to Qlee in the residential area. The vehicle was shifted to Peshawar I&I ofQice where ofQicials searched the car and found 14.5kg foreign smuggled charas tactfully concealed in the back seat of car. The esti-

mated value of the seized narcotics and vehicle is around Rs 2.7 million.

FIR No 25/2018 has been lodged against un-known driver/persons and further investigation is underway.

Meanwhile, Director I&I Dr. Arslan Subuctageen told Customs Today while giving an exclusive interview that the I&I KPK is working with full conQidence under his command to curb the notorious elements involved in various illicit activities of Non-Duty-Paid (NDP) vehicles and smuggling of different items. Talking about the Qirst auction held after his joining as Director at I&I KPK, he said a total of 21 NDP vehicles were set for auction while 16 vehicles were sold in auction and Rs17.836million of revenue was generated including 10% Income Tax whereas 62 numbers of lots of different goods were set for sale while 12 lots were sold in the said auction against earning of Rs5.612million.

Talking about the vigilance and seizures, he told CT that, during last week, the I&I Peshawar seized a huge quantity of narcotics after a Toyota

Corolla car was spotted coming from Peshawar side. Upon chasing the car, the driver abandoned his vehicle and Qled the scene.

The vehicle was searched thoroughly on the spot by the staff of the Drug Cell and found contraband hashish and opium tactfully concealed in secret spaces of the rear doors of the car then the motorcar was brought on the premises of the Directorate of I&I Peshawar where 18.500 kilogram of hashish and one kilogram opium were retrieved. The value of the drugs and vehicle is Rs3million.

Dr. Arslan is presently posted as Director, Customs Intelligence, KPK. He is an ofQicer with a strong integrity and a role model for the young civil servants of Pakistan. Arslan is from the 6th batch of Rawalpindi Medical Collage and graduated in 1985. He cleared his CSS examination in 1989 and joined the 18th Common Training Program in the year 1990 as Assistant Collector in the Pakistan Customs Service. The Director I&I KPK completed his MBA and a postgraduate diploma from NUST University Islamabad. He has attended several research papers in the Qield of revenue generation and economic development in Pakistan and has represented the country at various international forums like UNODC and WCO. He has served within the country and abroad in various important positions like Chief, Federal Board of Revenue (FBR), and Collector Customs.

ter eld af h n o i t st auc said the fir pk, he t k u i o & b i ga tor at t for talkin ere se s Direc a w s g e n l i c i n old in his joi Dp veh were s f 21 n s o e l l c a i t enue veh a to of rev ile 16 n h o i w l l n i e tax 36m auctio incom Rs17.8 % d 0 n 1 a g n nt in auctio includ diere f d o e t s t a r o ene rs of l ots was g umbe le 12 l i n h 2 6 w s e l a a where t for s uction ere se w s said a d e h t goo old in were s

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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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High debt-to-gDp ratio

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ccording to the Ministry of Finance, the public debt-to-gross domestic product ratio is likely to reach 70.1 percent during the current fiscal year ending in June, exposing the failure of the PML-N government to manage the administrative affairs. The high debt-to-GDP ratio violates the Fiscal Responsibility and Debt Limitation (FRDL) Act of 2005 and as it is 10.1 percentage point higher than the limit set by parliament and 20 percentage points higher than sustainable levels for developing countries. The total public debt will reach Rs 24 trillion by the end of June 2018, as the government recorded miserable performance in almost all the sectors of the economy. According to experts, rising fiscal risks, narrow tax base, failure of the industrial sector to produce export surplus, inadequate foreign direct investment and unabated acceptance of loans from international donor agencies have marred the overall shape of the economy.

Unfortunately, borrowing from every foreign source at high markup rate remained the most preferred choice of the government and integral part of the national finance policy. The former finance minister had always been thumping his chest that the country has achieved the macroeconomic stability but it was nothing more than eyewash. The present volume of loans is more than the desired level. The erstwhile finance minister, presenting his last budget, had committed to bring down the debt ratio to 61.4 of the GDP till the end of fiscal year 2017-18. The ratio was 69.7 percent of the GDP, one of the highest during the fiscal year 2003-4, but it started coming down during Musharraf’s regime.

However, it increased with restoration of democracy in 2008-9. The debt-to-GDP ratio was 64 percent in 2013 when the PML-N took over the reign of the government and it has been on the rise since then. It is unfortunate that no policy or strategy has been devised by the PML-N to control the worsening debt situation.

Instead, the party government kept the acquisition of loans as the core part of its economic policy. As a result, the country has failed in the areas of macroeconomic development and made no effort to start debt reduction management.

issue of consistent economic policies A

LAHORE

DR AftAB AfZAL

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ccording to Dr Miftah Ismail, Adviser to Prime Minister on Finance, the economy of Pakistan has the potential to record an annual growth rate of 10 percent provided the economic policies and reforms, introduced by the government in various sectors, continue in future. It is the dilemma of this nation that every new government rejects the plans and programmes launched by the previous government and adopts its own version of economic development policies. This not only foils the efforts of the previous government for the growth of economy, but also

spoils the hard earned national wealth at the worst. There is no doubt in the notion that the country can achieve a higher growth target if programmes and policies are kept out of the realm of politics in the name of a larger national interest. However, this can only possible when the government institutions are independent and have the capacity to reject the political interference in their internal affairs. It is a good omen that the country is going to achieve 5.8 percent growth rate in its gross domestic product, against the government target of 6 percent during the year 201718. Though the growth is two points lower than it was projected, it is the highest in a decade.

Some world financial institutions, including the Asian Development Bank and the World Bank, have projected the GDP growth rate of 5 percent during the next fiscal year, but it can be twice if consistency in economic policies are ensure. The government has recently launched a suicide attack on the national currency and the nation will have to bear the consequences in the years to come. Who advised the government to take this drastic step is unclear, but whenever rupee is depreciated, it proved to be disastrous for the national economy. Instead of creating industrial surplus and boosting the agriculture sector, the government finds it comfortable to take

makeshift steps and its solutions invite more troubles than benefits. The country is still facing energy crisis and tall claims by the political leaders that load shedding will end in 2018 proved not more than political stunts. The authorities claim that around 10,000 megawatt electricity has been added to the national grid during the last five years, but industrial and domestic consumers still face power outages. The current account deficit still haunts the nation and the government found a solution in devaluation of the rupee. If this is the situation, it will be a self-deception that the country can achieve the growth rate of 10 percent in the near future.

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Customs valuation of diapers, sanitary napkins, tampons revised KARACHI: The customs values of baby diapers, sanitary towels/napkins and tampons have been revised.

Director of Customs Valuation Iqbal Muneeb revised the customs values of above-said items through valuation ruling No.1284/2018.

Earlier, the customs values of baby diapers, sanitary towels/napkins and tampons were determined vide Valuation Ruling No.1169/2017. Representations were received to revise the customs values of the goods afresh in line with the prices prevailing in the international market.

pcA detects tax evasion of Rs 8.5m

by M/s Shakeel ceremaics tiles KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 8.50 million by M/s Shakeel Ceramics Tiles, it is learnt here. Sources told Customs Today that M/s Shakeel Ceramics Tiles imported a consignment of fancy floor tiles, and got it cleared from the Port Qasim Karachi vide GDs on December 4, 2017 by paying customs duty very low at 6 percent after claiming the benefit of the SRO 552/2007. However, the subject items were correctly classifiable under the PCT 2407.2497 attracting customs duty at 10 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 8.50 million. The goods were cleared by appraiser Farooq Nasir Balti. Sources said that the importer violated the provisions of Section 42 (9-A) of the Cus-

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Thursday April 26, 2018

National

Adjudication-ii retrieves evaded taxes from two defaulters thru notices T

KARACHI

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he Customs Adjudication-II has sent a show-cause notice to a defaulter company and recovered Rs4.12million. Source said that the company Mubbashir and Sons was allegedly involved in a tax evasion. The company imported new and used leather jackets from USA on August 16, 2017 on the charge of mis-declaration/description. The Customs Adjudication-II had advised the said company to pay R5million within 7 days.

Through another notice, the Customs Adjudication-II received Rs4.12million in response to a Qinal notice served on a defaulter company named M/s K K & Company.

M/s K K & Company was allegedly involved in a tax evasion. The company imported different kinds of cosmetic items, including lipsticks, nail polishes, brushes and various kinds of shampoos, in the month of November 2017 which was examined through Wahid Muhammad who used the wrong PCT heading.

After a careful investigation, the Customs Adjudication-II issued a Qi-

nal notice to the company on 4th of April. The company cleared the amount. Source said that Collector Adjudication-II Tahir Qureshi said that, in the month of April, we are investigating 13 cases of defaulter companies. Meanwhile, The Customs Adjudication-I recovered Rs3.57million from M/s Amjad Ansar Traders Hyderabad. The same adjudication also serves a Qinal no-

tice on M/s Nasir Auto Parts Karachi (Shershah). M/s Nasir Auto Parts Karachi was allegedly involved in a tax evasion. The company imported different types of 1200 CC-Engine parts on August 16, 2017 by Examiner Sajjid Murad Khanani and used the wrong PCT heading. After a careful investigation, the Customs Adjudication-I issued a Qinal notice to the company on April 16. According to

the Qinal notice, the defaulter company will pay an amount of Rs4.82million within 14 days.

Source said another company M/s Amjad Ansar Traders Hyderabad got cleared a consignment of window frames, aluminum sheets and rolls, aluminum scrap, door scrap and some steel scrap on October 22, 2017 and evaded a tax amount of Rs3.57million.

feD on cigarettes to increase by 20pc in upcoming budget toms Act-1969, Section 66 read with Section 14 of the Sales Tax Act-1990 and Section 317 of Income Tax Ordinance 2001 punishable under clauses (221) and 149 of Section 214(5) of the Customs Act-1969, Section 66 of the Sales Tax Act-1990 and Section 22 & 14 of Income Tax Ordinance 2001 and Section 5-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

According to source Directorate of Customs Post Clearance Audit, Director PCA Nadeem Memon has said all pending cases will be clear in current month and next month.

ISLAMABAD

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he Federal Board of Revenue (FBR) has decided to Qix ambitious Federal Excise Duty (FED) target for documented cigarette industry for 2018-19 in view of policy decision to retain third tier (third slab) of FED on cigarettes in next Qiscal year. Sources said on Monday that a very challenging FED target would be set for next Qiscal year. At the same time, the target of FED would be enhanced for beverage industry with the proposal to raise FED on beverages. A third tier allowed for an increase in FED by almost 20 percent whereby revenue from government will go up from rupees 74 billion to more than rupees almost 94 billion.

As cigarettes remained top rev-

enue spinner in terms of FED within the indirect taxes side, the revenue collection target to be assigned to the documented industry would be enhanced in 2018-19. Meanwhile, the FBR would fully equip tobacco squads of Inland Revenue Enforcement Network (IREN) with necessary equipment and infrastructure in budget (2018-19) to intensify its operations against locally manufactured tax-evaded cigarettes.

According to sources, the FBR has realized the importance of IREN with the retention of third slab of FED on cigarettes in coming budget. Government revenue has simultaneously benefited from two major actions of the government ie third tier of FED on cigarettes and actions of IREN against the non-duty paid cigarettes. This has realized the fact that both these policy measures must con-

tinue in 2018-19 to reduce non duty paid sector as it is stabilizing now. The tobacco squads in the Regional Tax Offices need to be equipped with vehicles and other necessary equipment to continue to enforce actions in the next fiscal year. More than 1.6 billion cigarette sticks and raw material was seized in 2017 alone and about 8 illegal manufacturing operations closed down. The IR Enforcement network needs full backing of the government to further increase its actions in the filed formations along with continuation of policy on cigarettes in next budget. Moreover, the government is expected to in increase funding to the IR Enforcement network to expand its operational jurisdiction to other territories, sources said. The revised FED structure on cigarettes played a key role in increasing ex-

cise duty collection. As the federal budget for 2018-19 is on the cards, major focus of revenue generation on indirect taxes would be excisable commodities like cigarettes, services (international air travel), beverages, cement, natural gas and edible oils, etc.

The FBR has appreciated that there is a decrease in illicit trade of cigarettes on account of enforcement action of Inland Revenue (IR) Enforcement Network on illicit tobacco/cigarette trade and third tier/slab (FED) on cigarettes, which made duty structure under three tiers. But authorities realized that continuous steps in coming year are essential to Qight against tax evasion in tobacco industry since this illegal sector is coming up with ways to create hindrances however the Government of Pakistan has vowed to Qight against this black market.

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Attempt of smuggling telephone copper cables & aluminum beverage cans frustrated Thursday April 26, 2018

National Dg Valuation Surriya Butt to revise VR no 878/2016 on June 4

KARACHI: The Directorate Customs Intelligence and Investigation Quetta foiled a smuggling bid of telephone cables, and aluminum beverage cans worth Rs4million. 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 telephone cables and aluminum beverage cans from Quetta city.

non-filers won’t be able to purchase property from July 1: Miftah

KARACHI

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ISLAMABAD

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he Directorate General, Customs Valuation Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 878/2016 on June 4, 2018, it is learnt. Surriya Butt said the department was reviewing suggestions from various importers to set new prices of different kind of blankets. She said that some valuations which were issued in 2016 were being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international market.

Sources told Customs Today that a petition was filed with the Customs Valuation in which change in prices different types of blankets were requested. Sources further said that Valuation Ruling No: 878/2016 was issued on 27th June, 2016. A meeting was held with the stakeholders on 13th April, 2018.

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tribunal hears number of cases during second week of April he Customs Appellate Tribunal has issued directives in a number of cases during second week of April while hearing customs references involving field offices of the Federal Board of Revenue. A single bench of the tribunal comprising the other member, Ziauddin Wazir, dated in office the hearing on a customs case filed by M/s TCS (Private) Limited with directives to submit related record. The bench asked the parties to submit record in the case prior to the next date of hearing. In recent week, another bench of the tribunal heard almost nine cases. Directorate General Intelligence and Investigation, Islamabad, M/s Smart Zone, M/s TCS (Private) Limited. –CB Report

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rime Minister’s Advisor on Finance Miftah Ismail has reiterated that non-filers will not be able to purchase property from July 1, 2018. Talking to media after addressing a roundtable conference on investment in Pakistan, Miftah Ismail said that salary and pension would be increased more than inflationary pressure of 5 percent on average in the upcoming budget.

He said that the outlay of federal budget would be hovering around Rs5.5 trillion for upcoming fiscal year and he would himself present budget speech in the Parliament. Regarding real estate reforms, he said that the provinces

would be requested to do away with valuation rates of property known as DC rates and similarly

the FBR’s valuation rates would also be abandoned. “We will allow sale/purchase of property at any

rate but the government will have power to buy land at double rate within six months period,” he added. He said that the FBR assessed revenue losses of Rs90 to Rs100 billion and this money would go into the pockets of middle class and with multiplier effect this extra money would come into circulation and the government would get its share in shape of taxes on consumption. The incoming government, he said, would have powers to reverse this reduction. Earlier, in his address, he said that there were 5 salient features of economic reform package announced by PM Abbasi as the tax rates were reduced from 30 to 15 percent and taxable ceiling limit was jacked up from Rs40,000 earner of per month to more than Rs100,000 per month.

Multan customs intelligence generates Rs36.3m from auction of vehicles & goods D MULTAN

iMRAn ALi

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irectorate of Customs Intelligence and Investigation OfQice Multan generated Rs36.05 million from auction of conQiscated vehicles and miscellaneous goods. According to details, Customs Intelligence and Investigation held public auction of seized miscellaneous goods and vehicles in the Raja Pur OfQice near Khanewal Road .ConQiscated vehicles and miscellaneous goods were seized in their different anti-smuggling operations in the jurisdiction.

There were 22 smuggled vehicles of different brands and models offered for the open sale. Huge number of bidders participated in the auction process for bidding. As many as 21 impounded vehicles sold out after successful bidding in the auction. Customs Intelligence

sold out these 21 vehicles in Rs28.5 million during auction. The vehicles which was offered for auction includes two Honda Civic, Toyota Premio, Toyota Land Cruiser, Toyota

Vitz and others. These conQiscated vehicles were non-tampered and non-duty paid. Customs Intelligence offered these conQiscated vehicles for auction after completion of legal

procedure and trial from Customs Adjudication. The Customs Intelligence has also sold out 11 various lots of miscellaneous goods worth Rs7.55 million during auction.

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Quetta Customs Intelligence impounds tanker filled with Iranian diesel KARACHI: The Directorate Customs Intelligence and Investigation Quetta took into possession Iranian diesel worth Rs7.50million including an oil tanker.

Sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Ch received a tip-off that some smugglers are trying to smuggle Iranian diesel from Quetta into Karachi. He immediately constituted a raiding team.

Team In-Charge, Preventive, Zahid Raja and others enhanced the surveillance at Quetta near Faroqi Shaheed Check-Post and started a thorough searching of the vehicles.

During the checking operation, the team intercepted an oil tanker bearing registration No: SMK-5478 which was going from Quetta to Karachi.

court approves remand of M/s Ali Bagh enterprises proprietor KARACHI

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he Customs Court has sent Riaz Sultan, proprietor of M/s Ali Bagh Enterprises and another Muhammad Ibrahim to the Customs Department on physical remand. The suspects were booked for attempting to smuggle betel nuts in the garb of import of soap stock and were also involved in evasion of duties and taxes through mis-declaration of the impugned goods. During the hearing, Investigation Officer Malik Muhammad Hashim produced the suspects before the court and informed that they were involved in crime mentioned in the First information Report no 8/2018R7D East for smuggling of betel nuts and duties and taxes evasion. He fur-

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ther informed the court that both the suspects had been arrested and notices were served on them under Section 171 of the Customs Act, 1969 and copies of the FIR have been supplied to them. Both the accused persons were produced before the court with the request that they might be remanded in the customs custody for seven days to enable the investigation agency for a comprehensive inquiry of the case. After the hearing, court sent them to customs custody on physical remand and directed investigation officer to produce them on next date of hearing along with progress report.

According to the prosecution, importer mis-declared the goods as soap stock 71250 kilograms value of Rs. 922,605 and during the raid, customs authorities recovered soap stock 60655 kilograms worth Rs. 922,605 and betel nuts 8400 kilograms valuing to Rs.1,375,894 from their possession.

National

SHc issues notices to customs against additional tax on hot-rolled alloy steel wires rods

customs Appellate tribunal seeks record of two appeals LAHORE

SAJiD nAwAZ

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he Customs Appellate Tribunal, Double Bench, heard 13 cases and adjourned all for different dates without those cases whose verdicts were reserved. The verdicts of two appeals were reserved to pass the final order. The Customs Appellate Tribunal also seeks relevant record of two appeals to decide cases. The Double Bench-I, comprising Justice Retired Malik Manzoor Hussain, Member Judicial and Saud Imran, Member Technical, heard 13 cases including Eastern Fighters versus Collector Customs Lahore, Pak Telecom versus Collector Customs Lahore, Cascade Enterprises versus Collector Customs Lahore, Rashid Ahmed Butt versus Collector Customs Sambrial, Pak Tractor House versus Collector Customs Lahore. Furthermore, the same bench heard appeals of Pakistan Mobile versus Collector Customs Lahore, Eastern Fighters’ six appeals versus Collector Customs Lahore, Muhammad Safder Iqbal versus Collector Customs Sambrial, Honda Atlas Cars’ five appeals versus Collector Customs Lahore.

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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 Qiled by M/s Al-Majeed Ibrahim Steel Industries (Private) Limited and M/s Ibrahim Nizami Steel Industries (Private) Limited against additional charges of 5 percent and further US$66/MT on consignments of hot-rolled alloy steel wires rods imported from China.

During the hearing of matter, a division bench, headed by Justice Munib Akhtar, also directed them to Qile their respective para wise comments on the next date of hearing.

Earlier, counsel for the petitioners stated that petitioners imported the above mentioned goods from China and Qiled the goods declaration accordingly. However, they are seriously aggrieved by the unlawful formula under captioned valuation ruling by addition of 5 percent and further addition of US$66/MT for which, no any cogent and plausible reasons have been given by the respondents. He argued that respondents are bent upon to assess the

Thursday April 26, 2018

same grounds as per formula, provided vide Valuation Ruling No 6932014 by taking price for London Metal Bulletin and unlawful and arbitrary addition of 5 percent and further addition US$66/MT. Citing Chairman Federal Board of Revenue, Secretary Revenue Division, Collector of Customs Collectorate Appraisement Port Muhammad Bin Qasim, Collector of Customs Collectorate Appraisement

East and Collector of Customs Collectorate Appraisement West and respondents, they pleaded the court to declare that act of the respondents as illegal, mala Qide and arbitrary, counsel further pleaded the court to set aside impugned valuation of addition 5 percent further addition US$66/MT and restrain them from taking any coercive action against the petitioner till Qinal order in this petition.

pBc suggests reduction in wHt tax on fMcg distributors

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KARACHI

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akistan Business Council (PBC) has proposed measures for reducing cost of doing business in the country and suggested that rates for withholding tax on Fast Moving Consumer Goods (FMCG) distributors should be reduced to 0.2 percent in line with Section 113 of the Income Tax Ordinance, 2001.

The PBC in proposals for budget 2018/2019, suggested the Federal Board of Revenue (FBR) Section 153 (1) (a) withholding income tax on supplies by distributors of FMCG products needs to be rationalized.

It further said that Section 148 imports procedure and rules for obtaining exemption certiQicates for import of raw material by industrial taxpayers has serious restrictions which causes hardship and increases cost of doing business. In case withholding tax-exempt imports cross the 125 percent limit of previous year’s imports, withholding tax at 5.5 percent is levied, which signiQicantly impacts cashQlows as refunds remain blocked for extended period of time. Highlighted Section 156 related to prize offered by companies for promotion of sales, the PBC said explanation needs to be added to this section to

clarify that products/cash given as part of sales promotion efforts to increase/achieve targets will be taxed at the withholding tax rate applicable to channel partners and that this provision is applicable to prizes given to end consumers only.

The PBC said that withholding tax under Section 235 should only be used to widen the tax base. Currently it is creating Qinancing issues for businesses. Regarding sales tax, it said that input sales tax is adjustable at 90 percent of output sales tax. Current situation is leading to buildup of refunds. Input sales tax to the extent of 95 percent of output sales tax should be ad-

justable. The PBC further said that there is no concept of either group taxation nor of Qiling consolidated returns in Sales Tax Act along the lines of the Income Tax Ordinance.

Further, Section 2 (44) of the sales tax law requires that sales tax should be deposited on earlier of receipt of payment or delivery of goods. I suggested that sales tax should be collected at the time of actual delivery of goods and not at the time of advance payment received from customers. The PBC highlighted that sectors exempt from sales tax on their output are not allowed adjustment of their input sales tax.

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World Customs

Philippines Duterte moves to target fake drugs

MANILA: Philippine President Rodrigo Duterte has opened a new front in his war on drugs, targeting fake over-the-counter medicines to try to stem the spread of counterfeit paracetamol, his lawyer said. Salvador Panelo, chief presidential legal counsel, said Duterte had ordered police to arrest those responsible. “They do not only undermine or weaken the national economy by hitting a large-scale industry, they also threaten national security by endangering the health of a vast majority of the people,” Panelo said in a statement.

Thursday April 26, 2018

customs raids korean Air over tax Belgium recycles over 80% of its used plastic evasion by chairman’s daughter I

BRUSSELS

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SEOUL

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ustoms ofQicials raided the headquarters of Korean Air Lines Co. and the residence of the chairman’s daughter on Saturday to look into allegations that the heiress didn’t pay duties on luxury goods brought into the country.

Investigators from the Korea Customs Service stormed into the main ofQice of the country’s biggest airline in western Seoul and the house of Cho Hyun-min, Korean Air’s senior vice president.

Cho is also under probe over allegations that she threw water in the face of an ad agency manager during a meeting last month. Police recently raided the 35-year-old executive’s ofQice. She has been banned from overseas travel pending the probe. Meanwhile, Cryptocurrency miners in South Korea

netherlands crude oil refinery outlook to 2021 etherlands Crude Oil Refinery Outlook to 2021” is a comprehensive report on crude oil refinery industry in Netherlands. The report provides oil consumption, exports and imports details from 2000 to 2020 along with oil reserves for the period 2000 to 2015. The report also provides details on oil refineries such as name, type, operational status, operator apart from capacity data for the major processing units, for all active refineries in Netherlands till 2021. Further, the report also offers recent developments, financial deals as well as latest contracts awarded in the country s oil refinery industry.Acute Market Reports is the most sufficient collection of market intelligence services online. It is your only source that can fulfill all your market research requirements. –CB Report

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may soon Qind it more difQicult to get foreign-made mining chips imported to the country.

According to data published by the Korean Customs Service (KCS) on Wednesday, cryptocurrency mining chips have been added to the current list of items that must meet certain legal requirement for importation, such as safety and sanitation certiQications.

The new measure arrives after the border control agency noted the increasing amount of cryptocurrency miners imported into South Korea, according to a report from local media outlet Kyunghyang yesterday. For example, in November and December 2017 alone, the KCS noted imports of 454 mining chips at an estimated value of 1.3 billion Korean won ($1.2 million).

india’s iran oil imports fell 15.7 pct in fiscal year 2017/18

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ndia’s oil imports from Iran during the 2017/18 Qiscal year fell by 15.7 percent from a year ago as state reQiners reduced purchases after a row over development rights for an Iranian natural gas Qield, according to data from shipping and industry sources. India, the world’s thirdbiggest oil importer, shipped in a record 4.46 million barrels per day (bpd) oil in the Qiscal year that ended in March to feed its expanded reQining

capacity. During the period, Indian reQiners received about 458,000 bpd of oil from Iran, compared to about 543,500 bpd during the prior year period, the data showed. Indian state reQiners, including Indian Oil Corp, Mangalore ReQinery and Petrochemicals Ltd, Hindustan Petroleum Corp and Bharat Petroleum Corp, along with it subsidiary Bharat Oman ReQineries Ltd, lifted about 27 percent less oil from Iran, the data showed. –CB Report

n 2015, Belgium had the best recycling rate for packaging material in Europe, according to the European statistical ofQice, Eurostat.

However, the Federal Government aims to do even better and become the European leader of the circular economy. “This is an ambitious project begun in October 2016, that goes beyond the framework of this legislature since the study spans three years,” Minister Marghem explained.

Of the 183,000 tonnes of household packaging waste on the Belgian market each year, the country’s nine recycling plants process about 157,000 tonnes of plastics, metal and cardboard (PMC) collected in blue bags. The Qirst phase of the Coberec-Go4Circle study, presented on Monday, focuses on plastics.

About 132,000 tonnes (84%) of plastic packaging is recycled. The rest is material lost mainly because of sorting errors, and waste col-

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lected but not recycled. In its study, Coberec-Go4Circle proposes ways to minimize losses. These include encouraging the use of packaging composed of a single material, using transparent PET plastics, which are easier to spot during optical sorting, and reducing the size of the sleeves that cover the bottles.

The issue of the sleeves has generated much discussion between producers, consumer groups and recyclers.

Some argue that they add to the product’s attractiveness and also protect it. Others say they are hard to separate from the bottles, which sometimes leads to recyclable material being lost.

Meanwhile, In total, more than 140 SMEs in the cultural and creative sectors are expected to obtain access to Qinance as a result of this new Guarantee Facility. This agreement was made possible with the support of the European Fund for Strategic Investments (EFSI), the central pillar of the Juncker Plan.

government again targets regional nZ ational stands behind New Zealand’s international commitments to reducing emissions but has cautioned against drastic action which will unfairly impact New Zealand farmers and businesses, spokesperson for Climate Change Todd Muller says. “The Government has today established an Interim Climate Change Committee that will work on New Zealand’s efforts to meet our international climate change commitments – and right away set it the task of targeting regional New Zealand.

“New Zealand’s international commitments were made by the

previous National Government because we believe New Zealand can and should play its part – but that we must do so in a sustainable way.

“We must also do it in a way that recognises the unique challenges we face – including the fact half of our emissions come from agriculture and we don’t yet have a cost effective way of mitigating them. “But the fact the first task the Government’s committee has been assigned is how to bring agriculture into New Zealand’s Emissions Trading Scheme shows a worrying lack of concern for our farmers and economy. –CB Report

S Africa to prosecute as outstanding tax returns hit 30m

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CAPE TOWN

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he South African Revenue Services (Sars) said over the past few years it has experienced an “unacceptable increase” in the non-submission of returns across all tax types. Sars has now pledged to take action against these

non-compliant taxpayers through an initiative with the National Prosecuting Authority (NPA) to take criminal proceedings against the worst offenders. The initiative follows South Africa’s president Cyril Ramaphosa suspending Sars commissioner Tom Moyane in March after he refused to resign from the position. As of March 2018, Sars said its outstanding returns books show

that active taxpayers had collectively failed to submit more than 30 million returns, in many cases showing that multiple outstanding returns were due by a single taxpayer. The initiative saw its Qirst conviction last week when a representative of a company called SPS Distributors, referred to as S Ragunat, paid an admission of guilt Qine of ZAR5,600 (£330, €379, $468) for

non-submission of more than 50 outstanding value-added tax (VAT), pay-as-you-earn, (PAYE) and corporate income tax (CIT) returns.

“He was ordered to and has submitted all the outstanding returns,” a Sars spokesperson said.

Sars said eight outstanding return cases that involve hundreds of outstanding returns are currently before the courts.

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Egypt’s exports towards South Africa grew by 69% in 2017 CAPE TOWN: South Africa surged by 69% in 2017, the Egyptian trade minister Tarek Qabil (photo) announced last week. Let’s note that although imports fell by 14% ($181 million in 2017 against $210 million in 2016), trade deficit between the two countries decreased to $46.5 million in 2017 from $150.8 million in 2016. Egyptian authorities also hope to boost trade exchanges with other African countries under a recent agreement on the African Continental Free Trade Area (ZLECA), signed in March by more than 40 African countries. For the record, Egypt announced earlier this month its intention to set up a logistics center in West Africa to boost exports.

Belgium sees downturn in polished shipments elgium’s polished-diamond exports dropped in March, according to data from the Antwerp World Diamond Centre (AWDC). Polished exports decreased 7% year on year to $1.09 billion and, by volume, fell 13% to 423,764 carats. The average price grew 7% to $2,570 per carat. Polished shipments to Switzerland which hosted the Baselworld show that month slid 36% to $270.6 million, and exports to the United Arab Emirates declined 41% to $55.4 million. Those decreases outweighed a 48% jump in exports to Hong Kong to $140 million, while shipments to the US rose 29% to $319.3 million. Polished imports saw a 1% increase to $1.49 billion, while net polished exports the excess of exports over imports stood at

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Ports & Shipping

Thursday April 26, 2018

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

collision of ships at kpt: captain held responsible for incident

TEHRAN

n initial investigation report on Hapeg-Lloyd’s ship 8,000-TEU Tolten collision held captain of the ship responsible for the incident.

Hapeg-Lloyd’s ship 8,000-TEU Tolten, which was carrying transit-containers, collided with another vessel 6,350-TEU Hamburg Bay near the South Asia Port Terminal Limited (SAPT) berth. At least 21 containers fell into the sea because of the collision. The sunken containers were carrying imported cars and freight worth millions of rupees. The ship’s recording revealed that the captain did not issue any directives to prevent the collision. “The captain’s delayed response was the reason behind the incident,” the report said. The report further said that the accident could have been avoided if the Karachi Port had more powerful tugs. “The Karachi Port should have three tugs, not two,” it said.

It also said that the ship’s reverse gear did not work at the time of the collision, adding that the ships. –CB Report

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ran’s non-oil trade with the UAE hit $16.83 billion in the last Qiscal year (ended March 20, 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’s non-oil exports, including condensates have

witnessed a 6.6-percent increase during the last Qiscal year 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 ex-

ported $7.079 billion worth of condensate, 3.28 percent less year-onyear. Iran’s petrochemical exports 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. Liquefied natural gas ($2.495 billion), liquefied 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 12month period.

Six ships take berth at port Qasim negative $400 million, compared with negative $309.6 million a year ago. Rough imports climbed 10% to $1.17 billion, with rough exports soaring 30% to $1.48 billion. Net rough imports were negative $316.4 million versus negative $86.2 million last year.

The country’s net diamond account the sum of rough and polished exports minus total imports came to negative $83.6 million in March compared with negative $223.4 million the previous year. Meanwhile, In the business-related services sector, the loss of confidence showed up in all components of the indicator, though mainly in the forecasts for general market demand, which worsened for the second month in a row. –CB Report

TEHRAN

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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 cur-

rently occupying PQA berths to load/ofQload Containers, Rice Bitumen, Soya Bean Seeds, Coal, LPG and Palm oil respectively. Cargo throughput during last 24 hours stood at 126,899 tonnes, comprising 104,980 tonnes import cargo and 21,919 tonnes export cargo inclusive of con-

tainerized 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 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.

Meanwhile, Four ships GSL Tianjin, Maersk Chicago, ST Cergue and TRF Bergen carrying Container, Coal and Chemical took berth at Qasim International Container Terminal, Pakistan International Bulk Terminal and Vopak Terminal respectively on Tuesday.Meanwhile, six more ships carrying Steel product, Coal, LNG, Diesel oil and Chemicals also arrived at outer anchorage of Port during last 24 hours. Eleven ships namely GSL Tianjin, Maersk Chicago, MSC Heidi, Daytona Beach, Asma, Low and Land Amstel, Ocean Prelate, ST Cergue, Sakizaya Champion, TRF Bergen and Horizan are currently occupying PQA berths to load/ofQload Containers Rice Bitumen, Soya Bean Seeds, Coal, Chemicals and Palm oil respectively during last 24 hours.

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SBP asks FBR to introduce tax incentives for low-cost housing finance ISLAMABAD: The State Bank of Pakistan (SBP) has proposed a tax holiday of five years on the income of banks/DFIs earned on mortgages and tax exemption for developers/builders, and incentives for general public in the upcoming budget 201819 to promote housing finance in the country.

The SBP, in its proposals sent to the Federal Board of Revenue (FBR), said it is in the process of formulating a policy for promotion of low-cost housing finance in Pakistan.

Thursday April 26, 2018

Business

‘govt receives positive reply after tax amnesty’ ISLAMABAD

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pecial Assistant to Prime Minister on Revenue, Senator Haroon Akhtar Khan has said that government was receiving positive response after announcing the tax amnesty scheme for the people hiding their assets abroad due to insecurity. The concerned department had been asked to upload the forms so that the people having undeclared assets abroad could enjoy the beneQit from the scheme, he said while talking to a private news channel. He said business community and chambers had shown positive response after announcing this

iRSA releases 114,000 cusecs water ISLAMABAD

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scheme. To a question, he said Federal Board of Revenue had also explained the procedure for proceeding the tax. Meanwhile, Board members of Pakistan Tobacco Com-

fpcci proposes wHt rates for commercial gas; power consumers

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he Indus River System Authority (IRSA) released 114,000 cusecs water from various rim stations with inflow of 141,400 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1398.62 feet, which was 18.62 feet higher than its dead level of 1,380 feet.

Water inflow in the dam was recorded as 35,000 cusecs while outflow as 22,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1092.70 feet.

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pany (PTC) has said that the tobacco industry would contribute Rs120 billion as taxes in the upcoming Qiscal year 2018-19. “Our contribution into taxes can go up to Rs120 billion

and can enter into club of paying over $1 billion mark next budget against Rs90-92 billion projected collection for outgoing Qiscal year.

The market share of illicit cigarettes stands at 35 percent and by reducing 10 percent, the tax collection can easily go up by Rs 10 billion. We propose to the government to continue with existing three tier taxation system and persistent efforts against illicit cigarettes in big way,” they told media after holding annual general meeting (AGM). The PTC Board is comprised of renowned former bureaucrats and others belonging to banking and other prestigious institutions of the country. After taking stern actions by the FBR on enforcement front, the illicit tobacco industry shifted their business from KP to Azad Jammu and Kashmir.

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RAWALPINDI

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he Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed withholding tax rate at Qive percent and 7.5 percent for commercial/industrial gas and electricity consumers. According to the FPCCI budget proposals 2018/2019 that appropriate amendments may be made under Section 234A (4) of the Ordinance, so that only due tax is collected. It further added that

currently at per Section 235 read with Division (IV), Part IV of First Schedule to the Ordinance, the commercial as well as industrial consumers of electricity pay tax Rs.80 to Rs.1,500/per month, if the monthly electricity bill is up to Rs.20,000. However, if bill exceeds Rs.20,000, the tax is being collected at the rate of 12 percent and Qive percent for commercial and industrial consumers respectively. As per provision of Section 235(4) in case of company tax collected along with electric bill is adjustable against their tax liability and in other cases

tax collected up to bill of Rs.30,000 is considered minimum tax, whereas collection of tax with electric bill over and above is adjustable. FPCCI briefed that at present no tax is being collected along with gas bills except consumer of gas for CNG station only. On CNG Station withholding tax at four percent is collected under Section 234A of the Ordinance on the amount of their gas bill, whereas a large number of small and medium size taxpayer including wholesaler and retailer are not paying tax along with their gas bills.

tDAp-industry relationship to boost trade sector LAHORE

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he government is committed to facilitate trade and industry to help generate the pace of economic development in the country. All trade related issues of exporters are being addressed with an objective to enhance scale of exports. Mian Riaz Ahmed, Director General Trade Development Authority of Pakistan (TDAP), stated this while talking to a fourmember delegation of the Pakistan Carpet Manufacturers Exporters Association (PCMEA) who called on him. The DG apprised the delegates that all-out efforts were being made to facilitate the trade sector and assured that the delegates that their issues and concerns on export matters would also be taken for resolution. PCMEA Chairman Abdul Latif Malik apprised the DG about the ongoing activities of the association and highlighted issues which were being confronted by exporters. He said the government should encourage the carpet industry through Subs dy incentives and by opening new factories.

Qamar Zia, Vice Chairman of the Association also informed the DG about the industry related issues. The DG apprised the delegates about those efforts which the TDAP is making for the trade facilitation and asked TDAP-industry relationship to mutually work for the development of the export sector.

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AptMA demands compensation for delayed refunds KARACHI

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ll Pakistan Textile Mills Association (APTMA) has demanded compensation for delayed refunds from the date of deemed refund order.

In its proposals for budget 2018/2019, the textile association said presently, refund application is required to be Qiled through e-portal

within three years and section 170(4) of Income Tax Ordinance, 2001 provides that Commissioner within sixty days of the receipt of refund application shall pass an order. In case order is not passed within the aforesaid period the aggrieved person can Qile an appeal before the Commissioner (Appeals).

It is suggested that on failure to pass the order within sixty days, the refund order is deemed to be passed and compensation / addi-

tional payment for delayed refund provided under section 171 is made applicable from the date of deemed refund order. The provision under section 170(4) for filing appeal in case of non-processing of refund claim is deleted being infructuous. Unlike sales tax there is no electronic processing of income tax refund though the electronic data of tax deduction / tax payment is readily available with the Department. Rather the income

tax refunds are processed manually and the deadline given is never adhered with. The remedy of filing appeal to the Commissioner (Appeals) for not passing order within sixty days is not an adequate and efQicacious remedy as Commissioner (Appeals) can only issue direction for processing the refund claim.

Therefore, it is imperative that electronic processing of refund is prescribed in the rules on the pattern of sales tax and in case of failure to pass

the order within sixty days the refund order sanctioning claimed refund is deemed to be passed with accrual of additional payment for delayed cheque. The textile association also highlighted that presently, manufacturer companies are entitled to exemption certiQicate in respect of collection of income tax under section 148 by the customs authorities on their import of raw material and under section 153 on supply of manufactured goods.

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RCCI express concerns over issuance of inflated gas bills RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) president Zahid Latif Khan has expressed concern over issuance of inflated gas bills by Sui Northern Gas Pipeline (SNGPL) to commercial users at bread makers, tandoors and bakeris.

In a meeting with traders’ delegation at Chamber House Rawalpindi, RCCI chief said that it was reported

by Bread Makers and Naan Bai representatives that they were issued inflated gas bills for the month of March and it includes LNG charges. The inclusion of LNG charges in gas bills is not acceptable at all, RCCI chief vowed. The business community especially industries linked with SME sector are already facing gas shortage and these inflated bills will further increased their sufferings, he added.

fpcci demand audit exemption for commercial importers

Thursday April 26, 2018

Chambers

icci & Mci discuss to set up Metropolitan commerce unit

KARACHI

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he apex trade body has sought exemption from audit to commercial importers because they pay advance income tax at import stage as full and final liability. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in its proposals for budget 2018/2019, said under the last year’s audit policy, the commercial importers who pay advance value added sales tax at the rate of 3 percent at customs stage were exempted from audit vide Clause 58-E(2) of “Special Procedure for Payment of Sales Tax by Commercial Importers Rules, 2006”. However, contrary to previous audit policies, this year such commercial importers have not been excluded and as such in the current year, their

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cases have also been selected for audit. This is against the agreement made between the commercial importers and FBR and the government policy to minimize the direct contact between a tax collector and tax payer as it leads to corruption and tax evasion. The commercial importers were agreed to pay the advance tax at a higher rate just to avoid hassle, lengthy and cumbersome process of sales tax audit. Moreover, the importers pay 6 percent advance Income tax U/S 148 of Income Tax Ordinance 2001 as full and final discharge of their tax liability. However, they have also been served with income tax audit notices as well. It is proposed that Clause 58-E(2) of “Special Procedure for Payment of Sales Tax

by Commercial Importers Rules 2006”as deleted vide SRO No. 592(I)/2012 be included to restore audit immunity to commercial importers and the audit notices served to such commercial importers under Income Tax Ordinance 2001 and Sales Tax Act 1990 be withdrawn.

ISLAMABAD

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heikh Anser Aziz, Mayor Islamabad visited Islamabad Chamber of Commerce & Industry and discussed the possibilities of setting up a Metropolitan Commerce Unit (MCU) that would help in planning for better economic development of the city. Sheikh Amir Waheed President, Muhammad Naveed Malik Senior Vice President, Nisar Mirza Vice President ICCI and representative of Police Research Institute of Market Economy (Prime) were present at the occasion. Speaking at the occasion, Sheikh Anser Aziz said that developed countries achieved better economic growth by developing strong local governments and Pakistan should also focus on strengthening the local governments to resolve problems of people and achieve sustainable growth. He lauded the proposal of ICCI for establishing Metropolitan Commerce Unit in collaboration with MCI and said that concept paper of the proposal should be shared so that MCI could

consider signing MoU with ICCI for execution of the proposal. It was agreed that Prime would be make technical partner for MCU. Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry in his welcome address said that metropolitan cities were driving innovation resilience and business expansion in modern economies and Pakistan should also focus on better development of metropolitan cities for attracting global

trade and investment. He said proposed Metropolitan Commerce Unit would generate data and information on key sectors of the local economy that would help MCI in better planning and facilitating Qlow of trade and investment in the city. Ms. Ayesha Bilal, Chief Operating OfQicer and Zia Banday Director Prime said that Pakistan needed out of the box solutions to create a metropolitanbased economic governance model and added that establishment Met-

pak offers promising investment opportunities RAWALPINDI

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he Rawalpindi Chamber of Commerce and Industry (RCCI) has organized PakUzbek networking session at a local hotel. Minister of State for Finance Rana Muhammad Afzal was the chief guest on the occasion.

Khodjaev Jamshid Minister of Foreign Trade of Uzbekistan also attended the session who was heading a ten member trade delegation including Shamil Burnashev Deputy Chairman of the State Committee of Uzbekistan on Investments , Adham Ikramov Chairman of CCI of Uzbekistan, Bahadir Alihanov Deputy Chairman of the Association “Uztextile Industry” Oybek Mirzabekov Acting Chairman of JSC “Uzsanoatexport” (export of chemicals),

among others. Addressing the networking session, Minister of state Rana Afzal said Pakistan offers promising investment opportunities and government has introduced lucrative incentive to attract foreign investment. Halal food, tourism, leather, Textile and pharmaceutical are the key areas where investors can make joint ventures. The China Pakistan Economic Corridor now offering vast range of rail and road network to connect Pakistan with central Asian republics. There is a need to strengthen trade ties between the two countries. He lauded RCCI efforts in promoting trade activities in the country and the region through exhibitions and business opportunity conferences. He said chambers are playing vital role in promoting trade activities in the country. He said servicing sector is growing and investors can take beneQit of Pak-

istani skilled labor in services sector including banking, insurance and leasing. He said that energy shortage has been overcome and gradually we are lowering the per unit price of electricity to attract local and foreign investors. Addressing the session Khodjaev Jamshid Minister of Foreign Trade of Uzbekistan thanked RCCI for inviting for the session and B2B meeting and urge Pakistani investors to opt joint ventures with Uzbek. He said the trade volume is very low and there is need to increase the trade ties in different sector including Pharmaceutical, Agriculture, leather and textile. Adham Ikramov Chairman of CCI of Uzbekistan who signed Memorandum of understanding with RCCI said that the major aim of this MOU was to promote trade ties through exchange of trade delegates and exhibitions on reciprocal basis.

ropolitan Commerce Unit (MCU) would be a positive step in that direction. They assured that Prime would provide all sorts of technical support to make MCU a successful model for city development. Muhammad Naveed Malik Senior Vice President and Nisar Mirza Vice President ICCI also spoke at the occasion and said that MCU would Qill the gap and develop synergy between municipality and chamber for better economic development of the city.

Awareness Session on traffic rules at icci he National Highway & Motorway Police in collaboration with Islamabad Chamber of Commerce & Industry organized an awareness session at Chamber House to educate the business community on the importance of of traffic rules compliance in order to avoid road accidents. Addressing the business community, Tashfeen Nawaz, Senior Patrol Officer, National Highway & Motorway Police said that traffic accidents have taken more lives in Pakistan than the terrorism as the number of casualties occurred in traffic accidents was three times higher than the casualties in terrorism incidents. He said this situation necessitated enhanced awareness in the public about the importance of traffic rules compliance in order to avoid the road accidents. –CB Report

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Faisalabad Customs confiscates non duty paid energy savers FAISALABAD: The Customs Collectorate has seized a huge quantity of foreign origin energy savers worth Rs 1,250,000 involving duty and taxes Rs 145,000 and impounded Mazda truck worth Rs1,600,000 under Section 157 of the Customs Act 1969 which was being used for smuggling purpose. Sources told that Assistant Collector Shah Samad Hamadani received secret information that some smugglers are trying to smuggle energy savers through unauthorized route and without paying of duty taxes.

Thursday, April 26, 2018

CUSTOMS BULLETIN

peshawar customs impounds nDp items & vehicles worth millions of rupees PESHAWAR iRfAn BAHADuR

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he Anti-Smuggling Units of the Customs House Peshawar has taken into possession Non-Duty-Paid goods and vehicles worth millions of rupees in 20 days of April 2018.

Deputy Collector, Anti-Smuggling Units Customs FBR Peshawar, Obaid Khan in meeting with the customs ofQicers directed strict action against the smugglers of NDP items and vehicles. The sources informed Customs Today that NDP goods worth Rs34.7million was seized while, in the second attempts, NDP vehicles valued at Rs45.8million were taken into possession. The Anti-Smuggling Unit Kohat conQiscated NDP items priced at Rs10.7million in 20 days of April. The Anti-smuggling Unit of Customs FBR, Mardan Shergarh, impounded seven NDP vehicles during 20 days of April. Talking with Customs Today on Friday, Deputy Collector Obaid Khan praised the activities of the Anti-Smuggling Units and said the Customs Department for frustrating smugglers throughout the country. Deputy Collector Obaid Khan extended his talk and said that, under the leadership of Collector

Muhammad Saeed Jadon, the Customs House Peshawar has achieved a record status of recoveries and more goods and vehicles were taken into

possession during last three months.

The Deputy Collector added that strict actions have been taken which had decreased the smuggling

through Kohat, Bannu and Mardan regions. The Deputy Collector informed CT that about 14 different NDP vehicles were impounded by

the customs staff during this month and efforts are underway to accelerate the anti-smuggling activities and enlarge the collection loop.

Misconduct, negligence: near dozen of nAB officers fired ISLAMABAD

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he National Accountability Bureau (NAB) has removed 23 ofQicers from service on charges of misconduct and negligence, while 32 others have been awarded penalties.

According to a NAB spokesman, the disciplinary action has been initiated against a total of 85 ofQicers on the orders of NAB chair-

man retired Justice Javed Iqbal.

“The NAB chairman is of the view that self-accountability is very necessary towards adoption of ‘Accountability for All’. NAB is absolutely committed to eradication of corruption from the country across the board,” the spokesman said. NAB suspended with immediate effect Mohammad Ramzan Khan, deputy director, NAB Lahore, on charges of inefficiency and negligence in performance of official duties. An inquiry has been ordered for completion of codal formalities, including an opportunity given to

Ramzan Khan to defend charges against him as per law. Kashif Mumtaz Gondal, deputy director, Sukkur, has been suspended for three months on the charges of misconduct, and a formal inquiry has been started against him.

Meanwhile, An accountability court adjourned the hearing of a corruption case regarding Al-Azizia Steel Mills against Sharif family till Tuesday as a key prosecution witness, Wajid Zia, did not appear for testifying. Former Prime Minister Nawaz Sharif, his daughter Maryam Nawaz and his son-in-law Captain (retd) Safdar reached the court to

face the trial in AvenQield properties and Al-Azizia references Qiled by the National Accountability Bureau (NAB) in the light of Panamagate verdict. The court will resume hearing of the AvenQield case on 2pm.

Nawaz and Maryam arrived in Pakistan on Sunday night after meeting Begum Kulsoom Nawaz, who is in London for her cancer treatment.

They had sought a week-long exemption from appearing in the court, however, Judge Mohammad Bashir on Friday granted only a one-day exemption. At the last hearing, the court had approved a plea submitted by the NAB to sub-

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mit new evidence and witness. NAB Operations Director General Zahir Shah, who is the new witness, has been ordered by the court to bring documents acquired by him from the British government regarding the London properties. The NAB investigation ofQicer and the DG operations will be the last two persons to record their statements in the case. The latest documents acquired by Shah claims that the Sharif family’s London apartments were transferred to the possession of offshore companies Nielson and Nescoll in 1993-1995, and not in 2005-2006.