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Karachi, Fri April 27, 2018

LAHORE

M HAYAT

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mporters and exporters should adopt e-payment system for duties and taxes online instead of wasting their precious time in lines in front of banks. These views were expressed by Additional Collector of Customs Appraisement Rashid Munir on Wednesday here. The additional collector said that businessmen’s time is precious and they should save their time by adopting online and e-payment system. He said that by adopting the e-payment system for duties and taxes they would save time and when time is saved it means money is saved. He said that it has become a reality in the present ear that customs have facilitated the importers and exporters by implementing the e-payment system. The e-payment system will

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save huge and valuable time enabling them to spent the time in their business growth and development,” he highlighted. The LCCI President Malik Tahir Javaid, Vice President Zeshan Khalil, Additional Chief Manager, State Bank of Pakistan Ansar Iftikhar Butt, Additional Collector Customs Rashid Munir was prominent amongst the others. LCCI President Malik Tahir Javaid said that system of online tax payment will certainly prove to be a positive step towards improving the ranking of Pakistan especially in ‘paying taxes’ that is one of the ten factors of Ease of Doing Business. He said that according to the recently released World Bank Ease of Doing Business 2018 Report, Pakistan has slipped three places from its last year’s ranking of 144th, reaching 147th among 190 economies. Our ranking in ‘Paying Taxes’ is 172 which has to be improved to bring major turnaround in overall ranking.

All stations of MCC Islamabad suffer deficit of Rs73.76 million

Customs Export collects Rs 22.78 million of revnue during 20 days

FTO seeks record from parties on appeal filed by M/s King Ice Cream

Customs values of baby diapers & sanitary towels revised

All Quetta Stations show fantastic potential by collecting Rs1353m taxes

All the Customs Stations of the MCC Islamabad faced a shortfall of Rs73.76m | See pAge 02 |

Customs Export successfully collected Rs 22.78m during the first 18 days | See pAge 03 |

FTO has sought relevant record from parties in an appeal filed by proprietor | See pAge 04 |

DGValuation has revised the customs value ofbabydiapersandsanitarytowels/napkins | See pAge 09 |

Customs I&I has seized huge quantity of White Crystal plastic dana worth Rs 7 m | See pAge 16 |

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Tribunal ‘s Member puts oﬀ hearing ﬁled against MCC & I& I Friday, April 27, 2018

ISLAMABAD: Customs Appellate Tribunal’s Member Technical Ziaddin Wazir dated in office the hearing on customs cases of Raja Nabeel, Waqas Enterprises, Arshad Khan and Musawir Shah. Raja Nabeel had filed the cases against Directorate Intelligence and Investigation Islamabad. Other three appellants had filed their cases against Model Customs Collectorate Islamabad.

Islamabad

All stations of Mcc islamabad suﬀer deficit of rs73.76 million

ISLAMABAD

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TAriQ DerYA

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delegation of Pakistan Bankers Association had a meeting with Adviser to Prime Minister on Finance, Miftah Ismail here. Minister of State for Finance and Special Assistant to Prime Minister on Revenue, Haroon Akhtar were present on the occasion. The delegation shared with the adviser finance their budget proposals concerning the banking sector. Adviser Miftah Ismail said that banking was a vibrant sector and a key contributor to development of the economy. It had been playing an important role in promoting the cause of financial inclusion besides providing financing to business community, industrial sector and for different commercial activities. Government would fully encourage and facilitate the banks to keep playing this important role and also bring up new attractive packages and products for the customers. Adviser Finance assured that government would accord due consideration to the proposals put forth by the visiting delegation in the context of upcoming budget and accommodate them to the extent possible.

ll the Customs Stations of the MCC Islamabad faced a shortfall of Rs73.76million of Customs Duty (CD) during Qirst two weeks of April FY17-18 against an earmarked proportional revenue collection target. According to details given by sources of the Model Customs Collectorate (MCC) Islamabad that, during above said period, all the stations, comprising IDP, AFU, Car Section, C.Bond, UAB, AB and IMO, received Rs173.42million of gross revenue collection under the head of Customs Duty (CD) against an assigned proportional revenue collection target of Rs255.18million. All the stations of the MCC Islamabad were generated Rs199.45million under the same head during the identical duration of corresponding FY16-17. The Islamabad Dry Port (IDP) suffered Rs79.66million loss of CD against an assigned proportional target. The IDP was assigned Rs135.72million revenue target while it earned Rs56.04million for two weeks of April FY17-18. The Air Freight Unit (AFU) collected Rs5million an extra revenue against an earmarked proportional target. The AFU got Rs116.05million as CD against an allocated target of Rs111.77million for Qirst two weeks of April FY17-18.

‘Banking sector key contributor to development of economy’

The Car Section was assigned Rs4.00million target against a collection of Rs0.00million under the head of CD while C.Bond received RsRs.0.00million (zero) collection against an assigned revenue collection target of Rs2.00million. The Un-

accompanied Baggage (UAB) fetched Rs0.36million against an earmarked revenue target of Rs0.24million of CD for Qirst two weeks of April FY17-18. The Accompanied Baggage (AB) generated Rs0.59million as CD against an as-

signed revenue collection target of Rs1.20million for initial two weeks of April FY17-18. The International Mail OfQice (IMO) collected Rs0.38million of revenue against an an earmarked revenue collection target of Rs0.26million.

iHc orders submission of cases’ record required against cAT, ATir

ISLAMABAD

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

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

M/s Pakistan Tobacco Company Limited had contested the show cause notices issued by the Field Offices of the Federal Board of Revenue. M/s Pakistan Tobacco Company Limited had challenged the recovery under the head of outstanding sales tax by the LTU Islamabad. M/s Pakistan Tobacco Company Limited had maintained that the department had issued the demand for the Tax Year 2010 under the head of sales tax.

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SRB restores ST registration of 8 taxpayer companies KARACHI: Sindh Revenue Board (SRB) has restored sales tax registration of eight taxpayers, who were suspended in July 2017 on non-compliance of payment and ﬁling of monthly returns. The SRB issued a notiﬁcation on April 13 to restore the sales tax registration of eight taxpayers. The taxpayers are amongst the list of 4,338 taxpayers whose sales tax registrations were suspended on July 25, 2017. The SRB in a communication with Pakistan Automation Revenue Pvt Lmited (PRAL) said that the taxpayers, including M/s Zahoor Hussian Laghari, M/s Global Construction Company, M/s Amjad Government Contractor, M/s. Ahmed Yar Civil Contractor, M/s. Sultan Enterprises.

Adjudication-i retrieves rs3.57m from M/s Amjad Ansar Traders

Friday April 27, 2018

Karachi

customs export collects rs 22.78 million of revnue during 20 days

KARACHI

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he Customs Adjudication-I recovered Rs3.57million from M/s Amjad Ansar Traders Hyderabad. The same adjudication also serves a final notice 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 final notice to the company on April 16. According to the final notice, the defaulter company will pay an amount of Rs4.82million within 14 days.

customs Appraisement east earns rs5093.41m KARACHI

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he Customs Collectorate, Appraisement East, has generated Rs5093.41million of customs duty, sales tax, income tax and federal exercise duty during first 16 days of April 2018. Sources told Customs Today that the Customs Appraisement East received Rs3047million as customs duty, Rs1147million of sales tax, Rs883million as income tax and Rs16.41million under the head of federal excise duty during first 16 days of April. If we talk about 10 days of April, the Customs Collectorate, Appraisement East collected Rs4321 million of customs duty, sales tax, income tax and federal exercise duty including receiving of Rs 2478 million as customs duty, Rs 845 million of sales tax, Rs714 million as income tax and Rs14.25 million under the head of federal excise duty during 10 days of April.

KARACHI

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he Customs Export successfully collected Rs 22.78 million during the Qirst 18 days of April, while the Customs Export generated Rs 42.45 million during the previous month of March. Sources told Customs Today that Customs Export issued a total of nine show cause notices out of which 6 Qinal notices were served on defaulter companies during the 18 days of April. The Customs Exports issued show cause notices to two factories in order to collect the evaded tax amount. The customs authorities issued notices to M/s Shakeel Traders and Export Karachi and M/s Faraz Marble Enterprises Karachi. M/s Shakeel Traders and Export Karachi used the wrong Pakistan Custom Tariff heading to get its leather and rexine pieces cleared in the month of August 2017 and caused the national exchequer a loss of Rs 2.80 million. Sources told that during scrutiny of import data, the Customs Exports detect that the company used the wrong PCT heading. After detecting the tax evasion, the customs authorities issued a show-cause notice No: 217/2018 to recover the evaded tax amount. Meanwhile, the Customs Exports uncovered another tax evasion committed by M/s Faraz Marble Enterprises Karachi in marble top consignment on October 12 2017. The

customs authorities, after a careful investigation, served show-cause notices on the above said companies and asked them for submitting the evaded tax amount within fortnight. M/s Faraz Marble Enterprises Karachi used the wrong Pakistan Custom Tariff (PCT) heading to get its marble top consignment cleared and caused the national exchequer a loss of Rs 6.23 million. Meanwhile, The Customs Export has recovered an evaded amount of

Sources told that during scrutiny of import data, the customs exports detect that the M/s Shakeel Traders used the wrong pcT heading

court approves remand of 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 8/2018-R7D East for smuggling of betel nuts and duties and taxes evasion. He further 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.

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.

rupee slightly recovers against dollar he Pakistan rupee slightly recovered against the US currency in open market. As per local money market, the dollar lost five paisas in open market for buying at 117.95 and for selling at 118.30, while it remained firm in interbank at Rs 115.50 for buying and Rs 115.70 for selling.

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FBR names non-reporting ﬁnancial institutions Friday April 27, 2018

Lahore

LAHORE: The Federal Board of Revenue (FBR) issued a list of non-reporting Financial Institutions (NRFIs) published under provision sub-clause (iii) of clause (i) of rule 78B of Income Tax Rules 2002. The names of the financial institution included Industrial Development Bank limited (IDBL), Central Depository Company (CDC) and Development Finance Institutions including Pakistan Kuwait Investment Company, Pakistan Libya Holding Company Limited, House Building Finance Company Limited, Pak Oman Investment Company Limited, Pak Brunei Investment Company Limited, PAIR Investment Company Limited and Saudi Pak Industrial and Agricultural Investment Company Limited.

customs Tribunal sets aside ono in impugned machinery case LAHORE

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he Customs Appellate Tribunal has set aside an appeal of imported machinery filed by The Bank of Khyber against Additional Collector (Adjudication) Lahore and others. Justice Retired Malik Manzoor Hussain, Chairman, Customs Appellate Tribunal heard the stance of both parties and decided the case with remarks that additional collector (adjudication) failed to follow the law applied in this respect by the superior forums. So the impugned order passed to this extent is set aside. M/s Royal Sheffield private limited have defrauded on the government by misusing the manu-

court Duty Judge turns down bail plea of currency smuggling accused Duty Judge of the Special Federal Court of Customs Taxation and Anti-Smuggling has rejected a bail plea of an accused arrested in the currency smuggling. According to Customs Today, Arshad Ali, Duty Judge, turned down the bail plea of one Akhtar Mehmood apprehended from the Lahore airport. Earlier, the Customs Vigilance team detained the man at the Allama Iqbal International Airport set to depart for China with an unusual amount of US dollars. A team of Pakistan customs detained the accused with an amount of US dollars of 16000. He was travelling to Chuna by a foreign airline. The man was taken into custody for questioning and subsequently a case was registered against him. He was produced before the court for physical remand. –CB Report

facturing bond facility. The audit record pertained to the holder of manufacturing bond. The M/s Royal Sheffield private limited availed the benefits of the SROs and imported machinery and raw material valued at Rs37million without the payment of duties and taxes. After a complete verification by the Customs Department and adjudication, the Order-inOriginal was passed against the appellant, which was challenged before the Customs Appellate Tribunal on the grounds that order passed by the former authority is not according to the law and there is a need for a fresh order after hearing the case in detail. After a complete hearing of the case, the Customs Appellate Tribunal has accepted the appeal and set aside the Order-inOriginal.

fTo seeks record from parties on appeal filed by M/s king ice cream LAHORE

SAJiD nAwAZ

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he Federal Tax Ombudsman (FTO) has sought relevant record from parties in an appeal Qiled by proprietor of M/s King Ice Cream against the Regional Tax OfQice (RTO-II) Lahore. During the proceedings of the case, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant for the last two years. He said the RTO-II collected excessive taxes from the company during the last two years. The petitioner approached the ofQicials concerned several times for the release of refunds, but the RTO ofQicials failed to clear refunds after the passage of a 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 at the earliest. The counsel further said that delay in release of refunds put burden on taxpayers, adding that the RTO-II should make audit of the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO-II argued that the appellant has not submitted all record to the ofQice for claiming re-

funds. If appellant provides the accurate record, the RTO-II will release refunds after a proper assessment, he added. After hearing the arguments from both sides, advisor for FTO Mian Munawar Ghafoor has ordered to the relevant zone of Regional Tax OfQice-II to produce relevant documents on the next date of hearing to conclude the case. He directed counsels to appear in the next date with relevant documents.

court approves remand of accused rD, ADD pushes up import of steel scraps involved in mobile phones smuggling mposition of regulatory and anti- and transport sectors, are the prime

formed that on intervening night of 15/16-04-2018 accused arrived from Dubai by Emirates Airline’s flight no EK-606 and intercepted by IPS Green Channel and was asked to declare whether he was carrying any contraband goods in his baggage, to which, he denied. Being dissatisfied with the passenger’s declaration, he was diverted to customs scanning machine along with his baggage. Investigation officer further informed the court. –CB Report

dumping duties on Qinished products has pushed up import of scraps in the Qirst half of FY 2017-18. OfQicial sources told Customs Today that iron and steel within the metal group, steel imports rose by 16.8 percent on YoY basis to US$ 1.1 billion and a more pronounced increase was witnessed in the import of iron and steel scrap, which went up by 76.0 percent to US$ 777.3 million in Qirst half of current Fiscal Year 2017-18. The imposition of regulatory and anti-dumping duties on Qinished products, along with growing demand from construction

reasons behind elevated scrap imports, sources told. On the other hand the commercial import of CBUs is allowed only under personal baggage, gift scheme and transfer of residence scheme, sources added as most motor cars are imported under the transfer of residence scheme, in October 2017, the government imposed mandatory requirement of paying duties and taxes in foreign currency through account of the sender of the car, they said adding that these mandatory requirements were withdrawn on 23rd February 2018. –CB Report

govt committed to address export related issues: TDAp

LAHORE

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he government is committed to address the trade related issues being confronted by the exporters and all the stakeholders will be taken on board to resolve their trade related concerns. In this regard, all out efforts were being

made to streamline the growth of export sector. These views were expressed by Secretary Trade Development Authority of Pakistan (TDAP) Inam Ullah Khan while talking to a four member delegation of footwear sector who called on him. He said that TDAP was endeavoring to facilitate the exporters to help enhance the level of exports and the joint efforts of public-private sector

would help increase the momentum of the export sector. Adil Hasan, Senior Vice Chairman Pakistan Footwear Manufacturer Association (PFMA), apprised the Secretary TDAP 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 said fair. The stakeholders thanked the secretary for encouraging the business community in making improvements of their export mandate. The secretary wanted to have first hand feedback from the trade and apprised the delegates that the restructuring of TDAP is aimed at enhancing the relationship between trade and the TDAP.

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ISLAMABAD

M ArSHAD

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he Federal Board of Revenue (FBR) managed to get all times record high allocation at Rs.2558.950 million for 32 development projects in Public Sector Development Program (PSDP) of the budget allocations for the Qiscal year 2018-19. Some ten years back, for the Qiscal year 2007-08, FBR’s PSDP allocations were the highest Rs 2526.774 million for 69 development projects. A compression comparison for last Qive years shows that in the in the next Qiscal year2014-15, FBR’s PSDP allocations were Rs 152.495 million for 25 development projects. In the next Qiscal year 2015-16, FBR’s PSDP tuned to RS 353.091 million for 12 projects. Likewise in the Qiscal year 2016-17, FBR’s PSDP was of Rs 687.304 million for 09 development projects and for the current Qiscal year 2017-18, FBR was granted Rs 790.100 million for 10 development projects. A ofQicial source at Federal Board of Revenue, Wednesday, told Customs Today that at

the forum of Annul Plan Coordination Committee (APCC), Ministry of Planning, Development and Reforms was initially only willing to give only Rs.800 million as per last Qive year allocation. However, in result of hectic efforts of FBR Chairman Tariq Mahmood Pasha, Member Administration Tasneem Rehman and the Project Wing

led by Chief (Projects) Waseem Hayat Bajwa, FBR managed to convince the APCC for the record high allocations. “For the next Qinancial year 24 new schemes are added, which includes construction of zonal ofQices for IRS at Kohat, Mansehra, Jhang, D.I. Khan and Gwadar” the source said adding that also includes mega projects like construction of Regional Tax OfQices at Islamabad and Sargodha. Further owing to the importance of China Pakistan Economic Corridor (CPEC), some important projects including construction of Customs Collectorates at Gwadar and Gilgit Baltistan, Customs House at Sost, Customs Check posts along CPEC route etc also included in the PSDP 2018-19. Furthermore, the source said that to enhance s Pak – Iran trade through anr a e ye other viable border crossing ast fiv l r l o a f fisc son t i x r e point at GUBT BP 250 which a n p he A com he in t was a center point of Gwadar t n p i D t S tha ’s p s r B w and Chahbahar, a project of f o , n h s 5 lio 014-1 95 mil Customs in collaboration 4 . 2 year2 5 rs 1 he t e r with NLC and other departn e i . w s ct tions ments planned and got t proje p n D e alloca S m p r’s elop funded for next year. -16, fB 25 dev

for r 12 r 2015 lion fo al yea l c i s m fi t 1 nex 53.09 to rS 3 d e ts n u t projec

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

eDiToriAL

imminent challenges to economy

here are several factors including, growing external account challenges, trade deficit and energy crisis, which have the potentials to slowdown the economy of Pakistan in fiscal year 2018-19. In a bid to tighten monetary policy, the government allowed depreciation of rupee to deal with growing external account challenges, but the move faltered half way. The rupee value is experiencing a free fall and the claim that no further depreciation will be allowed could backfire as an interim government is going to be installed in Islamabad. When official machinery will be busy in holding general elections, there will no one to strictly monitor the dollar value in the open market. Another challenge facing the economy is acquisition of loans and grants from international financial institutions to contain the drawdown in foreign exchange reserves. It depends on the economic team of the next government to resolve the issue of trade deficits and official foreign exchange reserves. The next government will have to face the slow economic growth, adversely affecting its performance. The present government denies any pressure on the external account, as it is totally banking on the implementation of the energy and infrastructure projects under the ChinaPakistan Economic Corridor. Economists fear the balance of payments constraints would also cut short the growth to 5.1 percent in fiscal year 2018-19 and there is little hope that there will be any improvement in the supply-side factors. The next government will also have its first year in the office and it will take time to understand intricacies of economic management. The present government is proud of achieving the growth rate of 5.8 percent in the gross domestic product and that also in the outgoing fiscal year. Unfortunately, the political parties give little importance to understand the matters surrounding financial, trade and investment. When any of the political party comes to power, it does not know from where to start as the whole system is a mess in this country. The world economists put Pakistan in the list of next emerging markets, but government policies always cause damage to the national economy. Unless the government concentrate on the production of value added goods, it is difficult to enhance exports and lower trade deficit.

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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SHC appellate bench orders Customs to release oil tanker KARACHI: The Sindh High Court has ordered Customs authorities to release an oil tanker after due verification. A SHC appellate bench, comprising Justice Munib Akhtar and Justice Agha Faisal, earlier allowing the petition filed by Ateeq-ur-Rahman, owner of the oil tanker allegedly involved in the smuggling of the smuggled Iranian diesel, said that vehicle be released as an interim arrangement as per dictum laid down in a case law CR 110 of 2014. Ms Dil Khurram Shaheen advocate representing the petitioner submitted that Collector Customs Adjudication has passed an order in favor of the appellant that vehicle be released on payment of redemption fine of 20 per cent.

court accepts interim challan against suspects in betel nuts smuggling case KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi has accepted interim charge sheet against Arbab Khan, Director of M/s Docks (Private) Limited and others, who were booked for attempting to smuggle 52,158 kilogram betel nuts worth Rs. 6.9 million. During the hearing, investigation oﬃcer of Model Customs Collectorate Apprasement West Customs House Karachi submitted the interim charge sheet against suspects Muhammad Khalid, Operational Manager of M/s Docks (Private) Limited; Sunny Raj, Project Manager M/s Docks (Private) Limited; Shehzoor Hussain, loading supervisor of M/s Docks (Private) Limited; Syed Uzair Ali, computer operator of M/s Docks (Private) Limited; Mansoor Ahmed, Director of M/s Docks (Private) Limited; and Arbab Khan, Director of M/s Docks (Private) Limited and others. The investigation oﬃcer further informed the court that during the investigation, it was revealed that

Friday April 27, 2018

National

customs values of baby diapers & sanitary towels revised T

KARACHI

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he Directorate General of Customs Valuation has revised the customs value of baby diapers and sanitary towels/ napkins and Tamponsunder vide Valuation Ruling No 1284/2018 under Section 25-A of the Customs Act, 1969. Customs values of baby diapers and sanitary) towels/napkins were earlier determined vide Valuation Ruling No.1169/2017 dated 25-052017. M/s. Usman Ghani & Company Karachi submitted letters dated 27-11-2017, 22-01-2018 and 06-02-2018 regarding under invoicing in the import of baby diapers “rocket” brand from China. Representations from M/s Ontex Pakistan and several other stakeholders were received to re-determine customs values of subject items. Therefore, an exercise was initiated to determine the customs value of baby diapers and Sanitary Napkins, in terms of Section 25-A of the Customs Act, 1969, with a view to ascertain the current prices of the subject items prevailing in the international market

Meetings were attended by the representatives of different stakeholders. The importers were of the opinion that due to fall in e international prices of raw material of baby diapers including oil, pulp etc.. the prices of object item have shown a downward trend. They contended that the existing valuation ruling is already on the higher side. They stated that many im-

porters have established their plants for manufacturing diapers locally as the raw material of diapers is imported on lower values. Usman Ghani of M/s Usman Ghani & Company and M/s Mariam Impex also attended the meeting. He insisted that the prices of ‘rocket’ brand baby diaper should be increased, whereas, M/s S.S. Corporation, importer of ‘rocket’ brand dia-

per, emphasized that their prices are genuine. He stated that frivolous complaints are being Qiled against him due to business rivalry. He asserted that he got two consignments of Usman Ghani of M/s Marium Impex conQiscated on account of being counterfeit products in violation of IPR and submitted orders-inoriginal and orders-in-appeal in support of his contentions.

cabinet defers decision on tax exemptions on Lng imports the above mentioned suspects declared goods on the basis of fake NOCs of galvanized plain sheets prime and secondary quality, quantity 52050 kilograms valued at US$15094.50 equivalent to Rs1,701,468, however, during the search, oﬃcials of the customs authorities recovered 52158 kilograms betel nuts valuing to Rs6,916,151, he submitted that they also evaded the amount of duty and taxes in the tune of Rs8,57,176. According to the interim charge sheet, names of Shahzad Ahmed, Appraising Oﬃcer Customs Collectorate Appraisement West, Hussain son of Ahmed, Sultan Mehmood and Muhammad Zafar Arshad have been mentioned in the charge sheet as witnesses of the prosecution.

ISLAMABAD

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he Economic Coordination Committee (ECC) of the cabinet has deferred decision on tax exemptions worth billions of rupees and increase in margins on liqueQied natural gas (LNG) imports following opposition from the Finance Division which fears it will not be able to meet revenue target. Pakistan State Oil (PSO) and Pakistan LNG Limited are importing around 1 billion cubic feet of LNG per day and any hike in their margins will push up gas prices and put burden on the consumers. Power, textile, other industries and compressed natural gas (CNG) filling stations are major consumers of the imported gas. The Ministry of Energy (Petroleum Division) had

sought an increase in margins on LNG imports after the Federal Board of Revenue (FBR) refused to withdraw 1% withholding tax. In a meeting of the ECC on Tuesday, the Petroleum Division argued that 1% withholding tax was levied on the value of LNG cargoes at the import stage, which the FBR treated as non-refundable. It translated into an effective tax rate of around 71% of the margins allowed by the Oil and Gas Regulatory Authority to PSO, which would lead LNG importers towards financial collapse, the Petroleum Division said. It proposed that margins of importers should be jacked up by 1.32 percentage points from 2.5% to 3.82%. In that regard, the Ministry of Energy (Petroleum Division) presented a summary before the ECC, seeking tax exemption and a uniform tax rate for LNG imports to

avoid the hassle of tax refund. After discussions, the ECC gave directives for further consultation on the tax exemption issue following resistance from the Finance Division. It was informed during the meeting that SNGPL – a stateowned gas transmission and distribution company – was paying 17% general sales tax to PSO and was receiving nothing in sales tax from the textile sector and only 5% from CNG stations. Owing to this anomaly, Rs7.97 billion of SNGPL had been stuck and it was facing cash flow problems. Earlier, the FBR had agreed that 12% tax would be charged at the import stage and the same 12% on LNG sale to the consumers to avoid the accumulation of tax refund cases. The Petroleum Division sought exemption from provisions of Section 153(1)(b) of the

Income Tax Ordinance 2001 on payments received by Sui Southern Gas Company (SSGC) from SNGPL for the LNG re-gasification carried out by Elengy Terminal effective July 2015. It also sought exemption from Section 153(1)(b) on payments received by Pakistan LNG Terminals Limited or Pakistan LNG Limited for LNG re-gasification by terminal operators Elengy Terminal and Pakistan GasPort Limited. The FBR backed a proposal for exemption from 8% withholding tax levied on SSGC and Pakistan LNG Terminals for reimbursement in respect of LNG services agreement. However, the FBR pointed out that the issue could only be resolved through a money bill in parliament. Therefore, it was proposed that exemption from withholding tax would be allowed through the money bill.

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SHC orders production of bus used in diesel smuggling Friday April 27, 2018

National SHc directs customs oﬃcials to produce Toyota Mark X

KARACHI: The Sindh High Court has ordered production of a bus used in smuggling of diesel from Iran. A SHC appellate bench, comprising Justice Munib Akhtar and Justice Agha Faisal, heard Ms Dil Khurram Saheen advocate who represented petitioner Ateeq-ur-Rahman. She relied on a precedent and SRO 499 of 2009. She also submitted that adjudicating authority of Pakistan Customs has passed an order-in-original in favour of the petitioner ordering release of the bus on payment of 20 per cent redemption ﬁne and penalty of Rs25000.

Deputy collector Moazzam raza transfers six appraising oﬃcers

KARACHI

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LAHORE

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he Sindh High Court (SHC) has directed customs officials to produce Toyota Mark X before the court on a constitutional petition filed by Muhammad Usman, seeking release of his vehicle bearing registration number BEN-684 seized by customs officials. A two-member bench, comprising Justice Munib Akhtar and Justice Omer Sial, heard the matter, During the hearing, counsel for the customs department sought further time to produce the said vehicle, therefore, the court granted him time and directed him to comply the court orders. Earlier, counsel for the petitioner stated that officials of the customs department intercepted the above mentioned vehicle and driver was asked to produce the legal documents of the said vehicle, who produced all documents, but officials of the customs authorities seized the same without any lawful authorities, being aggrieved he moved to Customs Appellate Tribunal .

kTBA terms new amnesty scheme simplest arachi Tax Bar Association (KTBA) has declared the present amnesty scheme announced by the Prime Minister on April 5 as the simplest scheme when compared with the amnesty schemes announced in the past. At meet the press, KTBA President Khalid Mahmood said that previous amnesties were complicated and thus resulted in failure. He said that the current amnesty scheme would be successful as it is simple and without ambiguities. Mahmood said bar members were receiving queries related to amnesty scheme but they were reluctant to document their undeclared assets before the announcement of federal budget.

ustoms Collectorate of Preventive Deputy Collector Moazzam Raza has transferred six appraising ofQicers with immediate effect. According to the notiQication, Appraising OfQicer Mian Khurram Munir, who is currently performing his duties at Customs Headquarters, has been transferred to Air Freight Unit of Allama Iqbal International Airport, Appraising OfQicer Iftikhar Ahmad Butter is also transferred from Customs Headquarters to AFU. The notification further stated that Appraising Officer Muhammad Ijaz Cheema, who is currently performing his duties at Land Freight Unit of Wagah, is hereby transferred to Railway Station T-

10 with immediate effect. Appraising Officer Junaid Mustafa, who is currently posted at Air Freight Unit of Allama Iqbal International Airport, is transferred to

Railway Station T-10. Appraising Officer Hafiz Muhammad Usman Bin Munir Sheikh who is posted at Air Freight Unit is transferred to Land Freight Unit Wagha and

Appraising Officer Sidra Nayyer Zaidi is hereby transferred from Air Freight Unit Allama Iqbal International Airport to Land Freight Unit Wagha.

Taftan customs Station generates rs499m as all duties & taxes during 20 days of April T

ISLAMABAD

TAriQ DerYA

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he Taftan Customs Station of the Model Customs Collectorate (MCC) Quetta received Rs499million of all duties and taxes during Qirst 20 days of April FY17-18. According to details given by Ashraf Ali, Collector, Model Customs Collectorate (MCC) Quetta that, during above said duration, the Customs Station Taftan generated Rs154.30million as Customs Duty (CD) while it fetched Rs237.06million of Sales Tax (ST) whereas the Taftan earned Rs86.92million under the head of Whith Holding Tax (WHT) and collected Rs21.218million of Federal Excise Duty (FED). Taftan received Rs727.15million of all duties and taxes during the month of March FY2017-18. During said period, Taftan got an extra revenue against an assigned revenue

target under all the heads. The collector told CT that the Customs House Taftan generated

Rs267.56million revenue against an allocated target of Rs212million of CD. Taftan earned an extra revenue

of Rs55million under the same head against an earmarked revenue target for the month of March FY17-18.

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SHC calls comment on petition seeking restoration of NTN number KARACHI: The Sindh High Court (SHC) has directed the Customs Department to make sure filing comments on a constitutional petition filed by M/s Usman Logistics (Private) Limited seeking restoration of its clearing agent license/NTN No/ user ID password blocked by customs officials due to allegedly involved in ISAF scam. A two-member bench, headed by Justice Munib Akhtar, heard the matter. Earlier, counsel for the petitioner stated that the petitioner is being active as an clearing agent as well as customs private bonded carrier, is regularly and without fail has been submitting its goods declarations and monthly sales tax returns/ income tax returns and has never been involved in a sales tax evasion or any criminal activity.

customs Appellate Tribunal orders release of plastic dana LAHORE

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ustoms Appellate Tribunal has ordered to redeem the seized 870 bags of polyethylene (plastic dana) on payment of redemption fine equaling 20 percent of the value of goods in addition to statutory duties and taxes livable thereon. Justice ® Malik Manzoor Hussain, Chairman Customs Appellate Tribunal heard the case and scrutinized the record which was produced by the parties. The judgment passed with remarks that appeal is accepted. According to the brief history of case, Customs, raiding party with search warrant raided the premises of Mian Shabbir Factory, Bund Road Lahore. During search 870 bags of polyethylene (plastic dana)

each bag containing 25 kilograms and net total weight is 21750 kilogram were recovered. On demand, the person failed to produce documents regarding lawful import of goods. After confiscation of goods adjudication proceeding where goods were declared out rightly confiscated and Rs 25, 000 charged in penalty that is imposed on Muneeb Zaheer. Being aggrieved from the order and challenged before the Customs Appellate Tribunal on the grounds that order passed in mechanical fashion without consideration of law and liable to set aside but respondent denied allegations. After hearing arguments Customs Appellate Tribunal has accepted the appeal filed by the proprietor of M/s Al-Fateh Plastic Store against Collector of Customs (Appeals) Lahore.

National

customs court approves remand of accused involved in mobile phones smuggling

pcA detects tax evasion of rs 8.5m by M/s Shakeel ceremaics Tiles KARACHI

wAQAr AnSAri

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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 Customs 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.

KARACHI

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he Customs Court Judge Syed Faiz Rasool sent suspect namely Muhammad Noman son of Muhammad Siddique to customs lock-up on physical remand, who was booked in a case of attempting to smuggle non-duty paid 179 mobile phones worth Rs2,131,800. During the hearing, investigation ofQicer of Model Customs Collectorate Preventive Jinnah International Airport Karachi produced the above-mentioned suspect before the court and informed that on intervening night of 15/16-042018 accused arrived from Dubai by Emirates Airline’s Qlight no EK606 and intercepted by IPS Green Channel and was asked to declare whether he was carrying any contraband goods in his baggage, to which, he denied. Being dissatisQied with the passenger’s declaration, he was diverted to customs scanning machine along with his baggage. Investigation ofQicer further informed the court that during the search of accused, customs ofQicials found 100 mobile phones, 10 Samsung mobile phones prime, 54 Sam-

Friday April 27, 2018

sung mobile phones S6, 05, Samsung mobile phones J5, 02 Samsung mobile phones S7, 01 Samsung mobile phones S8, 01 I-Phone s6, 03 OALE XI mobile phones and 3 OALE X2 mobile phones worth Rs2,13,800 from his possession. He submitted that after the formalities, he was arrested and same goods were seized by customs authorities and case was registered against him for violation of 2 (s), 16 & 139 of the Customs Act, 1969, punishable under clause (8) (89) & (70) of

section 156(i)ibid, read with baggage rules notiQied vide SRO-666(1)-2016 dated 28.06.2006 & section 3(iii) of Import & Export (Control) Act 1950. He pleaded the court that prosecution needs further investigation from suspect therefore, court may send back to customs department on physical remand, after the hearing, court sent him back to customs department and directed customs authorities to produce him on next date of hearing along with progress report.

Dg Valuation revises customs values of steel files

KARACHI

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he Directorate General of Customs Valuation has revised the customs value of steel Qiles Qlat /half round/full round vide Valuation Ruling No 1283/2018 under Section 25-A of the Customs Act, 1969. Earlier the Customs values of steel Qiles Qlat /half round/full round were notiQied vide Valuation Ruling No.958/2016 dated 31-10-2016 and revised vide Order-in-Revision No. 312 dated 24-02-2017. However, it needed revision to reQlect the current price trend prevailing in international market. This prompted

an exercise to re-determine the Custom values of the subject goods under Section 25-A of the Customs Act, 1969. Numerous stakeholders meetings were held in this Directorate General. The participants had been requested to submit documents before or during the stakeholders meetings. Invoice of imports made during last three months showing factual value. Websites names and e-mail address of known foreign suppliers / manufacturers 01 the ll item in question through which the actual current value could be ascertained. Copies of contracts made / LCs opened during the last three months

showing the value of items in question. ) Copies of Sales Tax paid invoices issued during last four months (excluding duty and taxes) to substantiate the contentions of the importers Different stakeholders including importers and ofQicers from clearance Collectorate attended the meetings. Representatives of Collectorate stated that the values are suppressed. Importers on the other hand, requested to decrease values of steel Qiles Qlat /half round/full round. They, however, did not submit any documentary evidence in support of their contentions despite ample time given to them. Valuation methods given in

Section 25 of the Customs Act, 1969 were applied sequentially to address the valuation issue at hand. Transaction Value Method under Sub-Section (1) of Section 25 of the Act ibid was found inapplicable because required information under the law was not available. Identical and Similar Goods valuation methods provided in Sub-Sections (5) and (6) of Section 25 of the Customs Act, 1969 provided some reference values but due to wide variations in the declarations the same could not be relied upon exclusively. In line with the statutory sequential order of Section 25, this ofQice then conducted market.

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World Customs

China targets US EU with rubber trade case

BEIJING: China announced today it would impose temporary anti-dumping measures on synthetic rubber imported from the United States, the European Union and Singapore. The case could stoke the simmering tit-for-tat trade tiﬀ between Beijing and Washington, with each side having made threats of more duties on billions of dollars worth of good.The anti-dumping measures on rubber come after an initial investigation by China’s commerce ministry found evidence the countries were dumping the halo-isobutene-isoprene rubber.

Friday April 27, 2018

Drink and tobacco smuggling ring busted by tax team sting

china bans imports of scrap waste products

BEIJING

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LONDON

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n operation to disrupt the sale and supply of illegal tobacco and alcohol in Croydon, Tooting, Sutton and Streatham uncovered more than 49,180 cigarettes, 2.15 kilos of hand-rolling tobacco and 731.3 litres of alcohol, all believed to be illicit. A further 43.06 kilos of chewing tobacco, 10.98 kilos of oral snuff, and 85.5 kilos of shisha tobacco were also seized, as well as £2,600 in cash. Around 56 ofQicers from HM Revenue and Customs (HMRC), with support from Border Force, Trading Standards, Licensing Police and local authorities, visited 78 retail premises between Chris Gill, Assistant Director, Fraud Investigation Service, HMRC, said: “The sale of illegal tobacco and alcohol will not be tolerated by us or our partner

Thai March export growth seen slowing to 8pc y/y hailand’s customs-cleared annual exports likely rose again in March but at a slower pace than in the previous month, a Reuters poll showed, partly due to a high comparative base last year. The poll’s median forecast was a for exports to grow 8.0 percent in March from a year earlier. Exports, a key driver of economic growth in Thailand, rose 10.3 percent on year in February. The commerce ministry is targeting an export growth of 8 percent this year, after a 9.9 percent increase in 2017, despite a strong baht. Imports in March may have risen 11.6 percent from a year earlier, after jumping 16.0 percent in February, the poll showed. Meanwhile, Thailand’s Cabinet approved a plan on Tuesday to oﬀer tax incentives to encourage mergers among the country’s commercial banks, a move that will help them. –CB Report

agencies. Disrupting criminal trade is at the heart of our strategy to clampdown on the illicit tobacco market, which costs the UK around £2.5 billion a year, and the sale of illicit alcohol which costs the UK around £1.3 billion per year. This is theft from the taxpayer and undermines legitimate traders. “We encourage anyone with information about the illegal sale of tobacco or

alcohol to report it online or call the Fraud Hotline on 0800 788 887.” Gillian Deane, Border Force Assistant Director at Gatwick Airport, said: “By working with other enforcement agencies, such as HMRC and Trading Standards, we will continue to tackle this illegal trade head on. “The black market cheats honest traders and it is effectively stealing from the public purse.

South Africa Legal agreements influence transfer duty liabilities

n the recent matter of the Commissioner for the South African Revenue Service v Short and Other the High Court of South Africa (Western Cape Division) had to decide whether transfer duty had been determined correctly. The taxpayers contended that the acquisition of the property and the right of habitatio were two separate transactions. As a result, the taxpayers con-

tended that, for purposes of calculating the transfer duty liability, a lower amount of transfer duty was payable on the basis that transfer duty is imposed on a sliding scale and that SARS prescribes a special valuation each methodology for a right of habitatio in its handbook. However, this approach requires separate right to acquire the property concerned to be valued separately. –CB Report

hina will ban the imports of 16 more scrap metal and chemical waste products from the end of this year, the environment ministry said. The 16 banned products include steel smelting slag containing more than 25 percent of the metal manganese, and ethylene polymer waste, the Ministry of Ecology and Environment (MEE) said in a document published on its website. MEE also listed another 16 items that will be banned by the end of 2019, including timber waste and scrap metals such as stainless steel, tungsten and magnesium. China told the World Trade Organisation last year it would stop accepting imports of 24 types of foreign waste by the end of the year, and that it would phase out shipments of other waste products, including those readily available from domestic sources, by the end of 2019. China’s crackdown on im-

ported waste, which was as much as 47 million tonnes in 2015, is part of its “war on pollution”, and was meant to help upgrade the country’s economy and move it up the global supply chain. The ban has already caused massive pile-ups of trash overseas, but MEE spokesman Liu Youbin said at a press brieQing on Thursday it was a “key move to ensure environmental safety and protect public health.” “For the next step, the ecology and environment ministry together with other departments will conscientiously enforce and strictly forbid foreign garbage from crossing the border,” he said. Even before the ban came into effect, the government cancelled the waste import permits of 960 companies in 2017, and shut down another 8,800 Qirms accused of violating restrictions on imported scrap paper and plastic. The environment ministry said last year’s total waste imports fell 12 percent as a result, but it didn’t give an absolute number.

uS people to pay for medicine levies he Trump administration’s threat to impose extra tariffs on crude drugs manufactured in China will ultimately harm the interests of the American people, who will have to pay more for the Qinal products made by local Qirms in the United States, said a leading industry analyst. Medicines and health products account for approximately 30 percent of the total products on which the US authorities threatened to levy extra tariffs, according to the China Chamber of Commerce for Import and Export of Medicines and Health Products. The chamber added that the customs tariff codes for export

commodities are different between the Chinese and US customs. Great Wall Securities said the list, which includes insulin, penicillin, adrenaline, diagnostic kit and nuclear magnetic resonance equipment, will not have a signiQicant impact on Chinese medicine manufacturers, as most of the products exported from China to the US are crude drugs, instead of high-tech products. “China is the largest exporting country of crude drugs. In the short term, the total orders might go down, but in the long term, the impact will be transferred to the local pharmaceutical companies. –CB Report

russian energy ministry tax change could boost oil output

MOSCOW

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he Russian energy ministry has proposed changes to a draft oil production law that it says could boost production by around 900,000 tonnes per year, First Deputy Energy Minister Alexei Texler said. Debate about

the law has dragged on for years, as the Finance Ministry expressed concerns the changes could reduce state revenues. Oilfields, especially in West Siberia, have become increasingly depleted and the new tax regime is seen as an incentive to produce more oil in a country which is heavily dependent on sales of energy for state revenue. Russia’s parliament has

approved the new profit-based tax on the oil industry on a first reading. Currently, taxes are based on production – via a mineral extraction tax – and exports. The new tax will initially cover four groups of oilfields, including new deposits in far-flung regions of East Siberia, fields which enjoy a lower export duty, and some highly-depleted fields in West Siberia. The

new taxes, at least on an initial stage, will be applicable to only limited number of fields, depending on how big their reserves are. Texler said the ministry had proposed increasing quotas for the groups of oilfields eligible for the new tax from 50 million tonnes of reserves to 150 million tonnes, and the changes would be debated in the second, crucial, reading.

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Qatar’s non-oil exports touched R5.6bn in 2018 DOHA: Qatar’s non-oil exports jumped by 15.1% to reach QR5.64bn in the first 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 certificates 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.

four ships take berth at port Qasim our 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. 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/offload Containers Rice Bitumen, Soya Bean Seeds, Coal, Chemicals and Palm oil respectively during last 24 hours. Cargo during last 24 hours

Ports & Shipping

uS shipping vessels hit by china tariﬀs turn away from Beijing T

WASHINGTON

Dominican republic increases exports to russia ussia has been demanding more products from all over the world, some companies saw the opportunity to export and make investments. The demand for produce and tourists arriving to the country encourage Russian air lines to start with routes to the Dominican Republic and realized the growth and that good returns on investment can be made”, explains Cesar Perez who is a producer and exporter from the Dominican Republic. He explains that the Russian market is looking for alternative supplying countries. “The Russian and European market have been constantly growing over the years. We believe they are looking for opportunities to supply the national markets by importing from other countries. For example Latin America, Peru, Costa Rica, Ecuador, Colombia and also the Dominican Republic. During each exhibition where we are present we see a growing number of Russian visitors that are interested in doing business.” –CB Report

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rade tensions between the US and China remain unresolved despite the markets’ hope for a peaceful conclusion, and news is hitting the wires that Qive US vessels that will be heavily impacted by China’s new tariffs on US goods have turned away from their destination port, and are heading back to the US. A Qleet of US sorghum vessels have made a U-turn from their China destination. Five of twenty ships carrying over a million tons of US sorghum changed course hours after China announced tariffs on US imports. China has imposed hardhitting anti-dumping duties on US grain imports. Meanwhile, US companies have their sights on M&A opportunities as they seek to deploy anticipated tax savings from US Tax Reforms, according to the EY Tax Reform Dollar Deployment Survey. As companies combat digital disruption and seek innovation through a variety of avenues, 47 per cent said they will increase research & devel-

Friday April 27, 2018

opment (R&D) spend and 42 per cent are planning to use those savings to pursue M&A. In addition, the survey found that almost three-quarters (73 per cent) of executives are likely to accelerate corporate M&A strategies for the year ahead. Of those respondents, 94 per cent plan to pursue transactions under $1 billion.US and overseas companies with

US operations are almost universally signaling a drop in their effective tax rates as a result of US tax reform. These signiQicant tax savings will be joined by previously ‘trapped’ overseas cash that many US businesses are now repatriating to home soil, due to wide-ranging multinational tax reform –all leading to increased liquidity in the market.

Vietnam still living on fie exports stood at 162, 736 tonnes, comprising 124,148 cargo carried in 3,903 containers (TEUs), (2,111 TEUs import and 1,792 TEUs exports) was handled at the Port.Two ships Asma and Horizon were sailed out to sea on Wednesday morning while three more ships Ocean Prelate, TRF Bergen and Maersk Chicago are expected to sail on the same day. Six ships African Horn Bill, Free State, Star Antares, Horn Bell, SC Tianjin Yu Fu and Al Thumama scheduled to load/offload Cement, Coal, Chemicals, Palm oil and LNG are expected to take berths at MW-2, PQEPT, PIBT, EVTL, LCT and EETL respectively on Wednesday. –CB Report

HONAI

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egetables and fruits were among the key export items with a growth rate of 35.6 percent, a signiQicant achievement if noting that six out of nine farm and seafood produce have seen export turnover decline. Vietnam’s fruits entered choosy markets, the result of efforts to focus on quality improvement and high added-value exports instead of trying to export as much as possible.Among the fastest-growing export products, industrial and manufacturing products were much higher in value, with turnover accounting for 83.3 percent of total export turnover in the Qirst quarter. Phones, mostly from foreign invested enterprises (FIEs), were still leading in export turnover, gaining

$12.3 billion, twice as much as turnover from farm and seafood products ($5.9 billion). As for steel, Vietnam’s export volume increased

by 28.5 percent, but export turnover soared by 38.5 percent as the exports to the US had a price higher than the average export price.

The US remains one of Vietnam’s big steel importers. However, the future is unclear as the US plans to impose a new tariff on Vietnam’s steel and aluminum products.The modest seafood export turnover is a big surprise. Only $1.6 billion worth of seafood exports were collected in the Qirst quarter, which means that Vietnam needs to export $2 billion worth of products at least each quarter in the next three quarters to be able to get growth in 2018. The target is a challenge for Vietnam as the EU has issued a yellow card warning to Vietnam over its Qisheries exploitation. If the situation worsens, the red card will be issued. Vietnam’s catQish industry is meeting difQiculties from all sides. The US has imposed high antidumping duties on Vietnam’s catQish, while Saudi Arabia has announced the suspension of Vietnamese seafood imports.

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MDA discusses pre-budget proposals MULTAN: Multan Development Authority (MDA) oﬃcials reviewed pre-budget proposals in a meeting held here. The meeting was chaired by Additional Director General MDA Rana Rizwan Qadeer and attended by Director Finance and Administration Mian Salahuddin, Director Town Planning Khalid Javed, Director Engineering Nazeer Ahmed Chughtai, Director State and Land Management Musa Khan and other oﬃcers.

Friday April 27, 2018

Business

‘no need of further pak rupee devaluation’ ISLAMABAD

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dviser to Prime Minister on Finance, Miftah Ismail has said that Pakistan does not see any further devaluation of rupee in near future. “Pakistan had to devalue its currency twice – Qirst in December by Qive percent and then in March by Qive percent – due to rapidly growing trade deQicit,” Ismail said in an interview with Bloomburg media group. The Finance Adviser is currently visiting Washington DC to attend the World Bank and International Monetary Fund (IMF) annual spring meetings. “Our exports had been going down for the

irSA releases 104,700 cusecs water ISLAMABAD

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last three years and imports were going up way too fast ; trade deQicit was coming too high, therefore it was right time to devalue our currency twice,” he said, adding luckily

Traders urge fBr to grant exemption certificates for machinery import

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he Indus River System Authority (IRSA) released 104,700 cusecs water from various rim stations with inflow of 127,200 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1401.16 feet, which was 21.16 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 33,800 cusecs while outflow as 25,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1098.35 feet.

there had not been any inQlation and so far the inQlation remained under 4 per cent. He said now the exports had captured the upward trend as in just March, the exports were up 24

per cent from a year ago. “So I see good things happening right now and I do not see any further need of devaluation.” To a question regarding World Bank and Asian Development Bank’s projection of low GDP growth during next year, the Adviser said with new power plants coming that will be started with the help of China Pakistan Economic Corridor (CPEC), and with other economic activities in the next year, “we are conQident that we should be able to get a 6.25 percent of GDP growth”. He said the country achieved 5.8 percent growth this year, and even last year’s growth was revised upward to 5.4 percent. Regarding selling of bonds, Miftah Ismail said last bond was sold in November 2017, and since then the country had not gone back to the bond market.

KARACHI

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extile exporters have demanded Federal Board of Revenue (FBR) to allow exemption certiQicate for import of machinery by industrial undertaking. In its proposals for budget 2018/2019, All Pakistan Textile Mills Association (APTMA) said that the exemption certiQicate U/Sec.148/159 of Income Tax Ordinance, 2001 is issued to loss declaring companies. No exemption certiQicate U/Sec.148 is is-

sued to exporters. Moreover in SRO 947(I)/2008 dated 05.09.2008 the condition (v) is not properly worded regarding payment of no tax on income. The positive measure of issuance of exemption certiQicate on imports by Commissioner was introduced in Finance Act, 2013, however, these rules needs to be revisited as under the current set of rules, practically no exemptions have been granted. This is causing hardships in the form of income tax refunds. The condition (v)(a) and (b) state that no tax is likely to be payable on income. At times ofQicer

refuse the certiQicate that minimum tax under section 111 is payable and the condition is not satisQied. Whereas, the condition is actually tax on income and not the minimum tax. Therefore, the language of condition (v) ought to be made explicit stating that no tax is likely to be paid other than minimum tax. To encourage capital investment in the country exemption certiQicate U/Sec.148/159 for Import of Machinery by Industrial Undertaking be allowed. In the past, this problem was taken care of by granting exemption certiQicates on yearly basis.

rs120b taxes to be generated thru tobacco industry GILGIT

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oard members of Pakistan Tobacco Company (PTC) has said that the tobacco industry would contribute Rs120 billion as taxes in the upcoming fiscal 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 fiscal 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 (AJK) and according to the estimates done by PTC that the AJK government could generate tax revenues to the tune of Rs7 billion by bringing them into tax net.

Tech industry lauds tax amnesty scheme LAHORE

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ax Amnesty Scheme-2018 is in line with national interest and nothing is found against the national interest of Pakistan in the recently announced Tax Amnesty scheme. It is completely safe and secured scheme from both country and beneQiciaries point of views. There will be no effect on the safety

and security of beneQiciaries of this scheme if future governments introduce amendments in the scheme. These thoughts were shared by eminent Qinancial expert S. M. Saleem Ahsan in a seminar at TECH Society Club on the topic: “Tax Amnesty Scheme-2018”. Mushtaq Ahmad, President TECH Society and Dr Muhammad Sadiq, Vice President TECH Society also spoke. Explaining details of the Tax Amnesty Scheme-2018 S. M. Saleem Ahsan

said that Amnesty Scheme was introduced through four ordinances namely: The Foreign Assets (Declaration and Repatriation) Ordinance2018, The Voluntary Declaration of Domestic Assets Ordinance-2018, The Protection of Economic Reforms (Amendment) Ordinance2018 and The Income Tax (Amendment) Ordinance-2018. He also told that public ofQice holders like President, Prime Minister, Chief Ministers, Governors.

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SCCI seven-member delegation leaves for Saudi Arabia SIALKOT: A seven-member business delegation of Sialkot Chamber of Commerce and Industry (SCCI), headed by Qaiser Baig, left for Saudi Arabia. The delegation leader said that the visit would pave the way for enhancing two-way trade between Pakistan and Saudi Arabia. Talking to APP before leaving for Saudi Arabia, Qaiser said that during the visit the delegation members would hold series of meetings with their Saudi counterparts and attend reception hosted by Riyadh Chamber on April 22 and visit different companies.

cDA to withdraw non-conforming notices to markets

Chambers

cM lashes federal govt. for intensifying hardships for karachiites

ISLAMABAD

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delegation of Traders Welfare Association, G-9 Markaz, Islamabad led by its Secretary General Raja Zulfiqar visited Islamabad Chamber of Commerce & Industry and held a meeting with Sheikh Amir Waheed President, Muhammad Naveed Malik Senior Vice President and Nisar Mirza Vice President ICCI to highlight the issues of their market. Muhammad Ejaz Abbasi Chairman CDA Committee of ICCI, Khalid Chaudhry and others were also present at the occasion. Addressing the delegation, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry strongly protested against the insulting behav-

ior of Member Planning CDA. He said business community was playing key role in the development of local economy but CDA high ups were paying no attention to resolve their issues. He said after the election of MCI, behavior of CDA officers have become quite insulting towards the business community which was not tolerable. He said due to this approach of CDA, problems of trade and industry were increasing. He said the appointment of foreign nationality holders as officers in CDA has badly affected its performance. Sheikh Amir Waheed said that prime minister should take notice of this situation and issue strong instructions to CDA for urgent resolution of key issues of the business community. He said if issues of markets were not resolved soon, traders would be forced to carve out a new strategy for protection of their rights.

Friday April 27, 2018

KARACHI

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hief Minister Sindh Syed Murad Ali Shah, while referring to the ongoing conQlict between K-Electric and SSGC, said that the Federal government was unwilling to resolve this serious issue because they don’t care about the people of Karachi and they simply don’t want to see the industries running smoothly in this city. Speaking at the inauguration ceremony of 15th My Karachi – Oasis of Harmony Exhibition at Karachi Expo Center. CM Sindh demanded that if the Federal government is unable to control SSGC and K-Electric, the Board of Directors and Management of both these entities should immediately be handed over to Sindh government. “Federal government can keep their shares and proQits from these entities but Sindh government should be given representation at the Boards of both companies and the Management must also handed over to us. Then, we will make sure that SSGC and KElectric take steps in the interest of

Karachiites”, he added. Sindh Minister for Industries Manzoor Hussain Wassan, Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli, Vice Chairmen BMG Zubair Motiwala and Anjum Nisar, President KCCI Muffasar Atta Malik, Senior Vice President KCCI Abdul Basit Abdul Razzak, Vice President KCCI Rehan Hanif, Former Presidents AQ Khalil, Khalid Firoze,

Mian Abrar, Majyd Aziz, Abdullah Zaki, Iftikhar Vohra, Younus Muhammad Bashir, Shamim Ahmed Firpo, KCCI Managing Committee members along with diplomats from various countries and exhibitors were also present on the occasion. Commenting further on SSGC & K-Electric issue, CM informed that he has written two letters to Prime Minister and has personally spoken

call for focusing on pharma industry ISLAMABAD

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heikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry has said that pharmaceutical industry has the potential to earn billions of dollars foreign exchange for the country through exports and government should focus on resolving its key issues that would help in improving country’s exports. He said despite decline in Pakistan’s exports during the last few years, exports of pharma industry have witnessed 26 percent growth during the last Qive years as our pharma exports increased from over US$ 169 billion in 2012-13 to US$ 213 billion in 201617. It showed that if government pay more attention to this industry, it could fetch billions of dollars

through exports to the national exchequer. Sheikh Amir Waheed said India’s pharmaceutical industry was earning over $16 billion annual exports, but Pakistan’s pharma industry’s exports could not touch $ 1 billion mark as yet despite the fact that this industry has huge scope to grow and improve country’s exports. He said that the pharma industry was importing 95 percent of raw material which was main hurdle in its way of better growth. He urged that the government should offer special incentives to investors in the coming budget for setting up industrial units to produce pharmaceutical raw material in the country that would go a long way in promoting exports of pharmaceutical products. He said government should also reduce duties and taxes on the import of pharma technology and machinery that would help

in upgrading this important industry. He said that government should consider allowing contract manufacturing to pharmaceutical companies that would give boost to foreign investment in this sector and promote exports. He said that many foreign companies were interested for investment in pharmaceutical industry but the restrictions on contract manufacturing were the main hindrance in promoting FDI in this sector. He emphasized that government should reconsider restrictions on contract manufacturing in the best interest of the country. Muhammad Naveed Malik Senior Vice President and Nisar Mirza Vice President, Islamabad Chamber of Commerce & Industry said that allowing contract manufacturing would bring in new technology in pharma industry and create more jobs.

to him at least 6 times but to no avail. “The Prime Minister, during our conversation last Sunday, informed that a meeting has been called to resolve this issues but unfortunately that meeting also failed to provide any kind of relief.” He was of the opinion that the Federal Government, despite having 24 percent stake in K-Electric and 73 percent in SSGC, was unable to resolve this issue which is really worrisome for Sindh government. “We have no share at all in both these entities. We have been demanding representation in K-Electric and SSGC as the problem is being suffered by the people of Karachi and Sindh”, he added. Murad Ali Shah said, “Prime Minister and Advisor for Finance are busy in foreign tours which is the only thing that matters to them. If they cannot do anything, both these companies should be handed over to us and we will rectify them. We don’t have the capacity to completely take over these companies and it is also not our legal right but Sindh government should be given some authority so that these companies could be forced to do work.

fpcci asks fBr to cut capital gain tax to 10% for filers ederal Board of Revenue (FBR) has been urged to reduce capital gain tax on securities to 10 percent from 15 percent in case of income tax return filers. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in its proposals for budget 2018/2019, proposed that the rate of capital gain should be reduced from the proposed 15 percent to 10 percent for filers. It further proposed that this change should be made applicable to all the purchases made on or after July 01, 2016 on the principle that the changes should be prospective and not retrospective in its applicability. The FPCCI also pointed out the issue of collections of taxes by stock exchange.

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Multan Customs sells seized apples in Rs1.1m MULTAN: The Collectorate of Customs sold out foreign origin fresh apples consignment in Rs.1.1 million during auction here. According to details, Multan Customs announced auction of seized consignment of foreign origin fresh apples through open bidding held in the Customs Dry Port. The auction of fresh apples was held under the supervision of Assistant Collector Muhammad Ikram. Huge number of bidders from fruit market participated in the auction of fresh apples at Multan Dry Port.

Friday, April 27, 2018

CUSTOMS BULLETIN

Quetta customs i&i seizes huge quantity of plastic dana, goods during checking QUETTA wAQAr AHMeD AnSAri www.customsbulletin.com

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 involved in smuggling.

‘cpec project to benefit 220 million people of pakistan’ LAHORE

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ML-N President and Punjab Chief Minister Muhammad Shehbaz Sharif Monday said the ChinaPakistan Economic Corridor (CPEC) was not limited to any of the provinces but was a gigantic project for the whole of Pakistan. “It’s not a project of building roads and bridges only but a

broader initiative of inter-connecting different ontinents, regions and countries,” he added. He expressed these views while addressing the China-Pakistan Economic Corridor Seminar held under the aegis of Ministry of Planning & Development. The chief minister said the CPEC would have to be transformed into a huge development project of future which would beneQit the 220 million people of Pakistan. In fact, he said, the CPEC had become a game-changer and this mega project had opened new avenues of cooperation in Pak-China friendship. “It depends

upon us to make it a success,” he said, adding their enemies were engaged in spate of negative propaganda about the CPEC as they did not want that Pakistan could reap its fruits. “The enemies of CPEC are, in fact, the enemies of Pakistan and its enemies are opponents of our development and prosperity. Our enemies do not want Pakistan to become self-reliant. We are happy that lion’s share has been given to the province of Sindh under the CPEC,” said Shehbaz Sharif and added that speedy work was going on Thar Coal Project due to the CPEC. “Let us join hands and

work harder with commitment and untiring efforts to make Pakistan a role model in the world. We should take full beneQit of the opportunity and work collectively to make Pakistan a modern welfare state,” he said. The chief minister recalled after the general elections of 2013, they went to China under the leadership of the then Prime Minister Muhammad Nawaz Sharif and held parleys with the Chinese leadership for energy projects. The energy crisis had badly affected the economy and every other sector in Pakistan then. The Chinese lead-

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ership well-understood Pakistani problems, especially our energy needs and helped them in an hour of trial. He said Chinese leadership had given a priceless gift worth 60 billion dollars in shape of CPEC projects. China made this colossal investment without attaching any strings nor repeated any ‘Do More’ in garb of this investment. The chief minister said belt and road was a wonderful vision of Chinese President and CPEC was an extended phase of it. He said political leadership of Pakistan had worked very hard and sincerely to give a practical shape to the CPEC.