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Karachi, Fri April 28, 2017
ISLAMABAD
M FAIZAN
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akistan and Bulgaria have signed the agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income (ADTA) after the conclusion of second round of negotiations here. The initiating ceremony was overseen by
Federal Board of Revenue (FBR) Chairman Dr Muhammad Irshad and Ambassador of Bulgaria to Pakistan Roumen Pirontchev, a press statement said. Head of Pakistan Delegation Mohammad Iqbal and Head of Bulgarian delegation Iskra Slavcheva initialed the ADTA. Speaking at the occasion, Dr Muhammad Irshad said the ADTA between the two countries would reduce tax impediments to crossborder trade and in-
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vestment by assisting taxpayers and tax administrations of the respective countries. The ADTA between Pakistan and Bulgaria would help in increasing bilateral trade and investment besides promoting exchange of goods and services and movement of capital and persons between the two countries. It will also provide certainty of tax treatment in each country so that the investors are free from any fear or apprehension.
Non-duty paid cigarettes: FBR Enforcement-IR seizes 509 million sticks
Multan AFU striving hard to curb smuggling, money laundering
Improved industrial production capacity to reduce trade deficit: Ahsan
Customs Central Region collects Rs101b duty, tax in nine months
Customs I&I seizes NDP cigarettes worth Rs36.5m on DG Shaukat’s directive
The FBR IR Enforcement, in its ongoing crackdownagainstillegalandNDPcigarettes | See pAge 02 |
TheMCCMultanAFUisdeliveringoneofthe mostconvenientinternationalstandardservices | See pAge 03 |
Ahsan has said that increase in production capacity by the local industries | See pAge 04 |
Customs Central Region has collected Rs101786 million all duty and taxes | See pAge 14 |
DG Customs (I&I) Peshawar seized 526 cartonsofforeignoriginsmuggledcigarettes | See pAge 16 |
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Customs impounds NDP vehicle on tip-off worth Rs03.599m Friday, April 28, 2017
National
ISLAMABAD: The Directorate General Customs Intelligence and Investigation, Federal Board of Revenue Rawalpindi, has seized non-duty-paid vehicle Toyota Corolla G Car Model 2002 valued Rs3.599million including duty and taxes. In pursuance of a tip-off, the staff of the Directorate of Intelligence and Investigation Rawalpindi took the possession of a reportedly non-duty paid smuggled Foreign Origin used Toyota Corolla G, Model 2002, with registration No. BT 980, (1496 CC) from Police Chowki Basal, Police station Jhand, Dist Attock, in terms of orders of Magistrate Sec-30 Jhand (Attock).
FBr enforcement-Ir seizes huge quantity of NDp cigarettes
peshawar ASo impounds vehicles, goods valued rs1797.488m ISLAMABAD
tArIQ DerYA
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he Anti-Smuggling Organization (ASO) Peshawar seized smuggled gold, goods and Non-Duty-Paid (NDP) offending vehicles (vehicles used for carrying smuggled goods) worth Rs1797.488million during nine months (July to March) of Financial Year (FY) 2016-17. According to details shown in the document provided to Customs Today, the ASO Peshawar seized 32.821 kilogram of gold/silver worth Rs125.400million whereas it seized 345 numbers of offending vehicles worth Rs482.000million and the ASO seized 209 offending vehicles worth Rs482.000 million. The ASO seized betel nuts/puppy seeds weighed 2784 kilograms valued Rs1.05million whereas the ASO seized a weapon worth Rs0.03million. The ASO seized 113886 kilogram of tea worth Rs40.719million and it also seized 2678 miscellaneous auto parts valued Rs27.274million. The ASO also seized 5189 tyres and tubes worth Rs19.381million whereas it seized 256 bottles of Mobil oil worth Rs0.912million and the ASO seized 27089 litres of Mobil oil worth Rs10.225million and the ASO seized 78 buckets of grease worth Rs0.016million.
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ISLAMABAD
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he Federal Board of Revenue’s Inland Revenue Enforcement, in its ongoing crackdown against illegal and nonduty paid cigarettes, has seized around 509 million sticks. The FBR Enforcement started the campaign against illegal and
non-duty paid cigarettes in January 2017. During the drive, RTO-II Karachi seized 50,000 sticks, I&I-IR Hyderabad seized 2.2468 million sticks, RTO Multan recovered 447,800 sticks, I&I-IR Multan confiscated 2 million sticks, RTO Faisalabad seized 3.76 million sticks I&IIR Faisalabad 22.030 million, I&I-IR Lahore 10.2 million, RTO Sialkot 1.22 million, RTO Gujranwala 1.97 million, RTO Rawalpindi 63.2 million, I&I-IR Peshawar 480,000, RTO
Peshawar seized 930,000 sticks, while RTO Rawalpindi seized 3,100 bales of processed tobacco, which is sufficient to produce over 400 million sticks. Taking strict notice of tax evasion in tobacco sector, Federal Board of Revenue has constituted a joint committee for strict monitoring, vigilance and scrutiny of the cigarette/tobacco sector on January 6, 2016 as per the decisions taken during second Chief Commissioners conference. On the
instructions of the competent authorities Chief Commissioner Inland Revenue, Regional Tax Office Rawalpindi was appointed as Central Coordinator of IR Network on illicit tobacco/cigarette trade. The main objectives of the enforcement network is to identifying core stakeholders in Cigarette/Tobacco sector, with reference to tax contribution, evasion of duty / taxes, tax jurisdiction and revenue generation.
customs Intelligence seizes three truckloads of contraband goods
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PESHAWAR
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ustoms intelligence wing has foiled a bid to smuggle health and environmental hazardous contraband goods worth Rs 102.05 million. The Directorate General of Intelligence and Investigation (Customs), Peshawar, during its antismuggling operation, seized huge quantity of dangerous chemicals
Panparag Snuff and Gutaka (Indian origin). On speciOic information received by Shaukat Ali, Director General Intelligence and Investigation (Customs), the Regional OfOice Peshawar seized three suspicious ten wheeler Hino trucks stuffed with smuggled goods at Warsak Road near M-I Motorway entry point. Thorough search of the aforesaid trucks led to the recovery of foreign origin smuggled goods including CFC refrigerant
(Brand Genatron 22) likely US origin (US Regulation printed on cylinders); quantity 490 cylinders (13.6-kg each); Panparag Snuff and Gutaka (Indian origin), quantity 5700-kg; cigarettes: Dunhill and Pine brands (Korean origin), 529 cartons; mobile phones (Q mobile brand), 920; mobile phones (Mobo brand), 6000; mobile phones (Nokia brand), quantity 288; welding rods, 3540-kg; padlocks 70 cartons; window/split AC (Mitsubishi and
Skywood brands), 88; cycle chain, 140 cartons; gold line tear tape, 42 cartons; plastic wire, 160-kg and pencils, 29 cartons. The CFC refrigerants are hazardous as CFC (Chloro Floro Carbon) substances which are ozone depleting chemicals are banned for import under Annex-F to the Import Policy Order (IPO), 2016. Similarly, Panparag Snuff and Gutaka (Indian origin) mentioned at S No 2 of the above table are also banned under IPO being haz-
ardous for human consumption. Some of the packing/cartons have been found printed with expression “In transit to Afghanistan via Bandar Abbas, Iran”. The smuggled goods along with three trucks have accordingly been seized for violation of the provisions of the Customs Act, 1969 and Imports and Exports (Control) Act, 1950 red with IPO, 2016. The estimated value of the seizure is Rs 102.05 million (goods Rs 93.5 million and trucks Rs 9 million).
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Excise Dept seals 110 properties of tax defaulters RAWALPINDI: Excise and Taxation Department has sealed 110 properties while conducting an operation against property tax defaulters. According to media reports, Rs 8,000,000 were not paid by these defaulters on account of outstanding arrears against the property tax. The Excise and Taxation Department sta has till now recovered Rs 2,670,000. In the supervision of ETO zone 1 Nazia Javed, about 50 properties have been sealed and while the department has made a recovery of more than Rs 1,200,000. Under the supervision of ETO zone 2 Riaz Hussain Qureshi, 60 properties were sealed with the recovery of Rs 1,468,000 from defaulters.
pcg seizes 375 kg drugs valued rs59m at gawadar coast
Friday April 28, 2017
National
Multan AFu striving hard to curb smuggling, money laundering
PESHAWAR
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he Pakistan Coast Guards (PCG) in coordination with Pakistan Customs on Monday claimed to have foiled a bid to smuggle a huge quantity of drugs through Gawadar coast. A PCG team seized a suspicious boat allegedly carrying above 375 kilograms of fine quality hashish and 30 kg crystal heroin near Gawadar coast. The officials have also arrested nine sailors on board. The PCG personnel launched an operation based on intelligence report, so the area was put under surveillance for days. The day came when the ship was searched for routine check and huge quantity of high class drugs were found.
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FBr decides to exempt SeSSI from taxes KARACHI
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he Federal Board of Revenue (FBR) has exempted Sindh Employees Social Security Institution (SESSI) from taxes. According to the details, FBR exempted SESSI from taxes due to efforts of Commissioner SESSI Mohammad Farooq Leghari. FBR has also allotted a free-tax number. It is pertinent to mention here that SESSI is an independent organization and working for the welfare of the labourers in the province. SESSI is a service oriented organization. It provides medical care facilities and cash benefits to the workers and their dependents. The institute spent approximately 70 per cent of its share on the welfare of its registered workers and labourers. The institute was established in 1967 and paid millions of rupees in respect of taxes. It has also requested the Federal Finance Minister and FBR to return back paid taxes.
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MULTAN
IMrAN ALI
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he Model Customs Collectorate Multan Air Freight Unit is delivering one of the most convenient international standard services to importers and exporters in the region of South Punjab after its inauguration, while on the other hand AFU is using all available resources to curb smuggling. This was stated by Assistant Collector Customs AFU Muhammad Ikram during an exclusive interview with Customs Today. He told that Multan International Airport is one of the adequate Olourishes for the provision of customs services in the jurisdiction to business community. He considered Multan International Airport is one of the biggest facilitation station in the country rather than revenue station which is handling almost 130 international Olights in the different parts of the world in a week. He told that only 22 international Olights were operated through Multan International Airport before the establishment of international cargo services in the region. Multan International Airport is facilitating importers and exporters of the region with purposeful steps forward along with traveling of passengers. He told that South Punjab is comprised of under-privileged community and majority of labour travelled to Gulf states for earning their bread and
butter through their hardship from Multan Airport. He stated that Air Freight Unit of Multan Customs first priority is to provide outstanding clearance facilities to exporters and importers at their doorstep for the promotion of Customs services and trade activities in the region. This will also generate further revenue in the Multan Customs Collectorate due to timely clearance facilities. The Model of Customs
Multan International Airport is one of the biggest facilitation station in the country rather than revenue station which is handling almost 130 international flights in the dierent parts of the world in a week
court awards imprisonment to suspect booked in smuggling
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KARACHI
M B rANA
www.customsbulletin.com ustoms Taxation & Anti-Smuggling Court Judge Syed Faiz Rasool Rashdi awarded 18 days imprisonment and Rs 100,000 Oine to Rustam Zaman son of Muhammad Mousa who was booked for attempting to smuggle 40, 000 litters high speed diesel of Iranian origin. It needs to be pertained here, in default of the payment of Oine, he will suffer further six months im-
prisonment in Central Jail Karachi. During the hearing, the accused person appeared before the court and moved application for pleading guilty, therefore, the court framed charges against him and read over and explained to the accused in Urdu language. He was asked if he wanted to plead guilty to the charges or claimed to be tried, he replied in pleading guilty and left himself on the mercy of the court. After the hearing, the court awarded 18 days imprisonment (already undergone period) and Rs
100,000 Oine to him. According to the prosecution, on credible information, staff of the customs department dated August 26, 2015 intercepted a track bearing registration no TKE-788 near Saba Cinema, New Karachi and recovered 40,000 liters of Iranian smuggled HSD oil. According to the prosecution, case was registered in violation of section 2 (s) 16, 157, (2) of the Customs Act, 1969 punishable under clauses (8) (9) & (89) of sub section (1) read with sub section (2) of section 156 of the Customs Act 1969.
Collectorate Multan has deputed 50 staff members at the international airport for the operation handling of arrival and departure flights. Customs employees are performing their finest services without any discrimination to coming and outgoing passengers at Multan International Airport. The Collectorate established 24/7 passengers facilitation desk at airport to provide best quality services to passengers.
customs Superintendent Nasim khan retires uhammad Nasim Khan, a Pakistan Customs Service officer of BS-16, has retired from the government service on attaining the age of superannuation. The officer, last posted as Superintendent Preventive Service at Model Customs Collectorate of Preventive, Karachi, stood retired from the government service with effect from April 9.
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Islamic banks flay imposition of 1% turnover tax LAHORE: Punjab Food Authority (PFA) on Tuesday sealed an ice cream and soda water factory being run illegally. According to a spokesman for the PFA, a team led by Director Operations Rafia Haider raided and sealed Laika Ice Cream factory situated at Johar Town, over not having medical certificates of its workers and license and using harmful elements in ice cream. In another raid, the team also sealed a soda water factory near Taxali Gate which was being run without any license. The PFA fined Central Asian Restaurant at Qaddafi Stadium and Coffee Bar.
Friday April 28, 2017
Business
Improved production capacity to reduce deficit LAHORE
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inister for Planning, Development and Reforms has said that increase in production capacity by the local industries would help reducing the trade deOicit in the country. He said low production capacity of local the industries has been the main cause of trade deOicit in the country. “The other main cause of growing trade deOicit is also growing dependency on imports to meet the domestic needs”, he said in a statement issued here. The minister said until 2013, more commodities were being im-
railways to earn over rs40b: Saad rafique LAHORE
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ederal Minister for Railways Khawaja Saad Rafique said railways would earn more than Rs 40 billion against the set target of Rs36 billion during the current fiscal year to be completed in June. In a press release issued here on Monday, he said that railways would continue to earn more than the set targets. He appreciated Railways Chairperson Parveen Agha, Chief Executive Officer (CEO) Javed Anwar, Anjum Pervaz, Ghulam Mustafa and all the staff which worked with dedication to strengthen the department.
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ported into the country to meet the domestic needs. He said current level of industrial production in the country was too low to meet the domestic needs, therefore the country needs more
industrialization in the country. In addition, he said when the present government came into power, majority of the industries were closed and due to measures taken by the government including
pSo declares rs14.2b profit after tax for 9 months
uninterrupted electricity and gas supply to the industries, the industrial sector was reviving rapidly. He said under China Pakistan Economic Corridor (CPEC), the industrial cooperation with China would help modernize the industrial sector. Meanwhile, President Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) Zubair Motiwala has said that Peshawar-Kabul Motorway project will improve the bilateral trade volume between the two countries. He said that it can double the existing bilateral trade volume up to 5 billion dollar and then take it to 10 billion dollar per year because future is regional trade. To a question, Zubair said that Kabul-Peshawar Motorway does not connect to China Pakistan Economic Corridor (CPEC) because CPEC is a separate framework.
KARACHI
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he Pakistan State Oil (PSO) has declared the Profit after Tax of Rs14.2 billion for the nine months of fiscal year 2016-17. An official said here on Tuesday that PSO’s Board of Management (BoM) reviewed the company’s performance for nine months from July 1, 2016 to March 31, 2017. The meeting was chaired by Musadik Malik, a senior member of the Board. During the period, the company showed volumetric growth in Mogas of 11%, in HSD of 12%, in JP-1 of 22% and in FO of 15% over same period last year (SPLY). LPG business showed a growth of 132%, CNG business grew by 15%, Lubricants sales volume grew by 25%, whereas LNG business grew by 107% over SPLY. Moreover, the PSO continued to lead the liquid fuel market with an overall market share of 55.1% (9MFY16: 55%). The market share of Black Oil rose to 72.7% from 69.5% SPLY, whereas the market share in White Oil stood at 44.6% vs 45.9% SPLY. Due to commitment of employees, the company had Profit After Tax (PAT) of Rs. 14.2 billion. This was due to favourable growth of sales volume and net margin and reduction in finance cost (despite increase in average borrowings by Rs. 19.5 billion) during the period due to effective treasury management, the PSO statement said.
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eu is third largest export market for pakistan: Spain envoy T
ISLAMABAD
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he European Union (EU) and Pakistan are enjoying strong diplomatic, economic and trade relations as the former has become the third largest export market for Pakistani commodities. European universities offer more than 100 educational scholarships to Pakistani students every year. These views were expressed by Carlos Morales Ambassador of Spain to Pakistan in a lecture organized by
Spanish department of National University of Modern Languages (NUML), Islamabad here on Monday, said a news release. Rector NUML Major General Zia ud Din Najam (Retd), Director General Brig Riaz Ahmed Gondal, Dean Languages Dr Safeer Awan, Registrar, Directors, Heads of Departments, teachers and students attended the lecture. Carlos said more than hundred thousand Pakistanis are contributing with their dedicated services in main stream of various countries of European Union. He was of the view that in recent years, the
volume of Pakistan’s export in European markets has been credibly increased in manifolds. To a question about Indian Held Kashmir, Ambassador said that Kashmir dispute should be resolved according to the resolution of United Nations and UN resolutions must be respected. He showed concerns over the human rights violations in Indian occupied Kashmir. Honourable ambassador handed over study material to Rector NUML. On this occasion, Rector NUML, while thanking to the honourable Ambassador briefed him about university in detail.
Bank Alfalah posts profit before tax of rs4.290b KARACHI
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he Board of Directors of Bank Alfalah Limited in their meeting approved the quarterly unaudited Oinancial statements for the quarter ended March 31, 2017. The Bank posted ProOit before tax of Rs. 4.290 Billion for the quarter, higher than the corresponding prior period by 13.1 percent.
A statement here on Tuesday said that the earnings per share were reported at Rs. 1.75 as against Rs. 1.55 posted for the previous corresponding period. It said that despite the challenges that persisted due to a consistently low interest rate regime and comparatively lower yields on PIBs, the Bank managed to grow its Net Interest Income by 2.3 percent as against the corresponding prior period. This was mainly attributa-
ble to volumetric growth as the Bank managed to grow its loan book by an impressive 16 percent, on a year on year basis. The Bank’s Non-mark up income also improved by 8.4 percent, as against the corresponding quarter, with Core Fee, Commission and Brokerage income, as well as foreign exchange income growing by 24.3 percent and 24.8 percent respectively. Improved recoveries against
Non-Performing Loans, resulting from strong recovery efforts, led to a positive impact on net provisioning, which further aided bottom line profitability. Administrative Expenses continued to be managed, reflecting a growth of less than 2 percent as against the prior corresponding period. Total deposits were reported at Rs. 600 Billion, down by 6 percent from the year end December 2016 levels- reflecting the Bank’s
continuing efforts to bring down high cost deposits, leading to an improved CASA mix of 85 percent at March 2017, as well as a reduction in the overall cost of funds. With these levels, the Bank’s ADR stands improved to 66 percent. At March 31, 2017, the Bank’s Non-performing loans (NPLs) ratio stands at 4.65 percent, better than the industry average, while the Bank’s NPL coverage now stands improved at 88.3 percent.
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LAHORE M hAYAt www.customsbulletin.com
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s many as 500 participants from various associations and Lahore Chamber of Commerce and Industry have been trained and the same are playing vital role in handling WeBOC system efOiciently in real time besides dealing with various other customs related matters effectively These views were expressed by Deputy Director DGTR (Customs) Kanwal Ali, while talking to Customs Today here the other day. Kanwal Ali is known as an honest, dependable, and incredibly hard-working ofOicer besides she has showed excellent performance to improve the training programs in DGTR (Customs) Lahore. “After returning back from the USA and availing the Fulbright scholarship as a Hubert H. Humphrey fellow in Public Policy in 2015, I was posted at DGTR (Customs) Lahore,” she told this scribe. Kanwal Ali stated that she has contributed in developing and upgrading the training modules and strategy at this regional ofOice and has successfully organized and conducted all prescribed trainings and seminars including multiple Mandatory Capacity Building Training Programs for the ofOicers of Pakistan Customs Service (BS-17-20). “I was given a golden opportunity and I played the leading role in expanding the ex-
ternal out-reach program for members of the business community and has arranged trainings on WeBOC and various other signiOicant topics,” she expressed. She said that more than 500 participants from Lahore Chamber of Commerce & Industry, Association of Customs Clearing Agents, American Business Forum, Small and Medium Enter-
prises Development Authority, Pakistan Tanners Association, Pakistan Furniture Council, Pakistan Association of Automotive Parts & Accessories Manufacturers and All Pakistan Air Cargo Clearing Agents Association have beneOited from the trainings arranged and supervised by her. In addition to that, she stated that she conducted regular training courses for ofOicers/ofOicials of Pakistan Customs Service, which were attended by hundreds of participants from the central region. She added that she also supervised the two months academic training of 112 newly recruited Customs sepoys at the Civil Defense Training School most effectively. In answer to a question she replied that she managed to foster positive s a h discussions and brings the best out e h ts ding ed tha of the limited human resource at t a r a t g s p i nd u al Al a w her disposal besides she also g n s i n a i k p th develo egy at displayed outstanding leadert n a i r t d s e but and y s l l e ship and interpersonal skills l u f u s contri s od ing m s succe due to which she is greatly apn a i d h a e r d b t i n the escr ce a r p ffi preciated by all her coll o l l a a ed region ultiple leagues, trainees and other nduct m o c g d n i n lud da c e z n team members. “It is due to i i g n s r n a i in ina org the valuable contribution in ng tra d sem i n d l a i s u g istan the academic Oield of customs acity B trainin of pak ry cap s o r t e a c that I was awarded a CertiOicate d ffi o e Man ) h t of Merit by World Customs Or-17-20 ms for ice (BS v progra r e ganization on the International S s m o t cus Customs Day celebrated on 26th January 2017,” she concluded.
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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
Question of gDp growth
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ccording to the international financial institutions and independent economists, the economy of Pakistan has the potentials to ensure annual growth rate ofup to 10 percent for next 30 years and no one would be able to stop the country from entering a middle or higher income group of countries.However, the Institute for Policy Reforms, in its half-yearly economic review, has expressed the apprehensions that the country would not be able to achieve GDP growth rate of 5.7 percent for fiscal year 2016-17.The report says that increase in the current account deficit has breached year’s target by 1.5 percent as exports are falling and their ratio with regard to the GDP is at a historic low. Pakistan is passing through a process of industrialization in the context of the proposed economic zones along the China Pakistan Economic Corridor, but the nation will have to prepare itself to absorb the light machine industry of China into Pakistan. The government is doing lipservice day and night about its plans and policies, but all the incentives and policies should have to be materialized in practical terms.The government will have to offer comparative advantages to the Chinese investors who are willing to shift their light industry to Pakistan. On another note, the higher current account deficits in the absence of foreign direct investment could force the government to enter another loan programme with the International Monetary Fund. Payment of various external debts is also due which need befinanced by any source. The exports are falling, but the imports are on the rise despite the State Bank has imposed a condition of 100 percent cash margin on the import of consumer goods. The report from the Institute for Policy Reforms predicts that the fiscal deficit would exceed a target of 3.8 percent of the GDP. Inflation is, however, under control but the government will have to keep a check on it.Pakistan is facing a hostile neighbor close to its borders which is also trying its best to cripple the national economy. It is tarnishing the soft image of Pakistan as a result of which the country could only attract a meagre investment of around 15 percent as compared to more than twice in India and one and half time by Vietnam.
eects of panamagate case on economy T
LAHORE
Dr AFtAB AFZAL
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he business community has heaved a sigh of relief as the Supreme Court has announced its much awaited verdict in Panamagate case. The stock market went up and some business leaders even claimed that the decision was in the interest of the economy as uncertainty was causing adverse effects on business activities in the country.The chiefs of various business organizations, including the Federation of Pakistan Chambers of Commerce and Industry,have asked politicians to keep their focus on the establishment of political as well eco-
nomic stability in the country.The economy of Pakistan is passing through a transitory period and politics of protests and agitation will put the country years away from development. The Supreme Court has ordered setting up of a joint investigation team to probe the matter and it will be fine for the opposition parties to let the officials do their jobs. Political stability is vital for economic stability of the country. The exports are falling, imports have increased and balance of payment problem is already haunting the economy. In this situation, any new protest programme will adversely affect the economic gains the country has achieved after years of struggle.
It seems another round of showdown between the government and opposition parties is round the corner as the Supreme Court has allowed 60 days to finish the investigation. However, it will be plausible for the parties to show restraint for the cause of the economy.The judiciary is independent and economic indicators are positive. The China Pakistan Economic Corridor will go a long way for the economic development of the country. Any political uncertainty will slow down the process of industrialization in the country. The decision guarantees certainty in the business environment and all the parties concerned should try their best to keep peaceful environment in
the country. It is the irony of fate whenever the country takes a stride in the right direction, something happens and all the gains are lost in one go. It is hoped that all the parties concerned will keep the national interest intact while deciding any agitation programme. The government should also concentrate on the electricity generation as the country is facing the worst kind of energy crisis. As the exports are already nosediving, the shortage of electricity will add insult to injury. It is a test case for the government as well as the opposition to maintain norms of decency in politics and national interests should be given priority on personal interests.
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ADB team visits Lahore Chamber LAHORE: A team of Asia Development Bank (ADB), led by Peter Turner, here Wednesday called on the LCCI President Abdul Basit and discussed a number of issues including National Transportation Policy, Economic development of Pakistan, business climate in the country and China Pakistan Economic Corridor (CPEC). The LCCI Senior Vice President Amjad Ali Jawa and Zeeshan Khalil also spoke on the occasion. Peter Turner said that effectiveness of transportation system is directly related to the trade and economic activities. He said that inefficiencies in the performance of the transport sector of Pakistan costs economy 4 to 6 percent of the GDP annually. He said that Asian Development Bank has been assisting Pakistan address this issue but investment in transportation infrastructure must be backed by the institutional improvement. On China Pakistan Economic Corridor, he said that it is important project that would help connect Iran.
IccI shows concerns over 38pc rise in trade deficit ISLAMABAD
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he Islamabad Chamber of Commerce and Industry (ICCI) has shown great concerns over the rising trade deficit of the country which has gone up to an all-time high of over $23 billion during the first nine months of the current financial year showing an increase of over 38% compared to the same period of previous year. The Chamber termed it a dangerous trend as it would create serous balance of payment problems, push the country towards heavy borrowing and plunge the economy into further difficulties. Khalid Iqbal Malik, President,
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Islamabad Chamber of Commerce and Industry said that the overall import bill of Pakistan has increased by more than 18% during July-March 2017 reaching to over $38 billion while the exports of the country during the period have come down to around $15 billion which showed that the economy was heading towards troubled waters. He was afraid that if the current trend of rising trade deficit continued, it could reach around $30 billion by the end of this fiscal year. He said the most disturbing fact was that the trade deficit has been rising for the last four years, but the government did not take any concrete measures to arrest this threatening development. He said that under the Strategic Trade Policy 2015-18, the government had set annual export target of $35 billion by 2018. However, viewed in the context of current trend of exports, this target seemed almost impossible.
Friday April 28, 2017
Chambers
uAe allows transportation of pakistani halal food products C
LAHORE
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hairman Punjab Halal Development Agency (PHDA) Justice Khalil-ur-Reman Khan has said that UAE authority has allowed transportation of Halal products through sea that would bring down the cost of freight by one third. He was addressing the foreign delegates participating in 6th International Halal Conference here at the Lahore Chamber of Commerce & Industry along with the LCCI President Abdul Basit, Senior Vice President Amjad Ali Jawa and Executive Committee Members. Participants of the International Halal Conference from Russia, Tartaristan, Indonesia, Malaysia, UK and UAE also spoke on the occasion. Chairman said that PHDA is having Memorandum of Understanding (MOU) with various countries and authorities to make it’s certiOication acceptable for them. He said that Pakistan Halal Authority has also been operational and Oirst meeting of its Board of Directors is being held on 13th of this month. He said that PHDA is also organ-
izing training programs for butchers to aware them of the Sharia requirements. After that they would be given licenses. He said that now is the time to boost up the Pakistan economy while exporting surplus Halal products available in Pakistan. Agency would support to the exporters of Halal products exporters. He urged the Lahore Chamber of Commerce & Industry to appoint a focal person for close liaison between PHDA and the LCCI. Chair-
man PHD said that 6th International Halal Conference will augment the Halal business of the country. He further said that the Government of Punjab is striving to boost the Halal industry of the country and this event aims to increase the potential of Halal trade in the province. The LCCI President Abdul Basit said that Halal Food has become billions dollar global economy today, wherein Pakistan’s share is still insigniOicant. It is high
time for Pakistan’s economy to get a boost not by getting aids from foreign countries but by exploiting the untapped potential of Halal Foods that has created a brand new Global Halal Economy in the world. He said that Halal global economy includes all type of Food and Non- Food products ranging from food and food ingredients, all types of beverages, cosmetics & beauty products, and a host of services including banking & takaful etc.
wccI for giving soft loans to women for doing business
SMeDA to extend services to district chitral
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two-member delegation of Chitral Chamber of Commerce and Industry (CCCI) called on Provincial Chief (PC), Small and Medium Enterprises Development Authority (SMEDA) Javed Iqbal Khattak and discussed problems faced by the business community of district Chitral. The delegation was comprised of the President, CCCI, Sartaj Ahmad Khan and Mohammad Wazir, member executive committee, FPCCI. During the meeting, Sartaj Ahmad Khan called for the establishment of Regional Business Centre (RBC), dehydration, honey processing, walnut oil extracting plants in district Chitral and organizing different training workshops for their members. –CB Report
PESHAWAR
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he Women Chamber of Commerce and Industry (WCCI) demanded the Oinancial institutions to give soft loans to women intending to do business besides equal participation of women in decision making process. Addressing a news conference at the chamber house on Tuesday, WCCI Peshawar President Ms Shamama Arbab lamented that the lending ratio of commercial banks is less than two percent in Khyber Pakhtunkhwa as the region had been declared as ‘red-zone’. She said the banks should launch a special loan scheme for women entrepreneurs and advocacy pro-
gramme to give boost to their businesses. WCCI president said our women are much talented and have potential to compete at every level. However she added that their work was yet not recognized in an appropriate manner. For this purpose, she said the chamber had developed a draft policy to promote women entrepreneurship in Khyber Pakhtunkhwa. She said the chamber had strongly advocated the work of skilled women and has undertaken a number of initiatives to promote their work in local as well as other parts of the country. Moreover, she said they had launched a special programme to give boost to business of women entrepreneurs and market their products by the development of linkages with businesswomen in other parts
of the country. She said the chamber should provide facilitation services to women entrepreneurs under ‘one-window’ operation service. Flanked by chamber chairperson, Fitrat Ilyas Bilour, vice-president Umama Ishfaq and members of executive committee, Ms Arbab says the women industrial park will be set up to provide space to those skilled women wanting to establish their business in various trades there. She added the chamber with the support of the incumbent provincial government will return 25 percent of their investment after establishment of their business. Similarly, she disclosed that a women business international council, comprising women working here and other countries, will be set up, with an aim to promote the manufacturing handicrafts of women at global market.
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Multan Dy Commissioner-IR Masood to retire on Aug 12 ISLAMABAD: Muhammad Masood, a BS-18 officer of Inland Revenue Service, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Deputy Commissioner-IR, RTO, Multan, will stand retired from the government service with effect from August 12.
Friday April 28, 2017
Islamabad Syed Faisal assumes charge as Dy Director of transit trade ISLAMABAD
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Dy collector (Adjudication) Jehan’s performance allowance granted J
ISLAMABAD
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yed Faisal Saeed Bokhari, a Pakistan Customs Service officer of BS-18, has assumed the charge as Deputy Director of Directorate of Transit Trade, Peshawar. The officer, in pursuance of Board’s Notification No. 1003-C-II/2017 dated 27.03.2017, relinquished the charge of the post of Second Secretary at Federal Board of Revenue (HQ), Islamabad with effect from March 31 and took the charge of the post of Deputy Director, Directorate of Transit Trade, Peshawar on April 7. Meanwhile, Amjad Aman, a Pakistan Customs Service officer of BS-18, has taken the charge as Deputy Director, Directorate General of Training & Research (Customs), Karachi. Amjad, pursuing the Board’s Notification No. 1003-C-II/2017 dated 27.03.2017, relinquished the charge of the post of Deputy Collector, Model Customs Collectorate of Preventive, Karachi.
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Senior preventive officer Syed Javed retires yed Javed Akhter, a Pakistan Customs Service officer of BS-16, has retired from the government service on attaining the age of superannuation. The officer, last posted as Senior Preventive officer at Model Customs Collectorate of Preventive, Karachi, stood retired from the government service with effect from March 3. Meanwhile, Ghulam Mustafa, a Pakistan Customs Service officer of BS-16, has retired from the government service on attaining the age of superannuation. The officer, last posted as Superintendent at Model Customs Collectorate, GilgitBaltistan, stood retired from the government service with effect from December 31. –CB Report
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ehan Bahadar, a Pakistan Customs Service ofOicer of BS-18, selected through the process of internal job posting (IJP), has been granted performance allowance. The ofOicer, presently posted as Deputy Collector at Collectorate of Customs (Adjudication), Islamabad, has been granted performance allowance (equivalent to 100 per cent of basic pay) with effect from April 4. According to the notiOication, the grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. C. No. 6(96)S(BIC)/2013-14 dated 06.03.2015 and will be discontinued in case prescribed terms and conditions are not fulOilled within one month from the date of issuance of
this notiOication. Meanwhile, Performance allowance in respect of Zahid Ali Baig, a Pakistan Customs Serv-
ice ofOicer of BS-17, has been restored. The performance allowance (equivalent to 100 per cent of basic pay) in re-
spect of the ofOicer, presently posted as Chief (PAC-Customs) at Federal Board of Revenue (HQ), Islamabad.
Appraisement west foils bid to evade taxes C
KARACHI
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ustoms Collectorate Appraisement West thwarted a bid to evade taxes worth Rs15 million. According to sources collector Appraisement West received credible information about some attempts of mis-declaration. He directed appraising team to enhance checking of consignments. He checking the team reassessment of already cleared container number XMM 4-6153787 and container number MAGU-5690011. Both containers’ imported by one company namely FAS Enterprises, Karachi and it was cleared by M/s Anchor Clearing Agent Company. According to sources Appraising OfOicer Jahangeer Afzal conducted initial examination of container number XMM 46153787 and received only Rs685,000 in head of tax duty while in second Investigation OfOicers Arif and Ahmed Mir detected the container was worth of Rs6966470 in head of tax duty.
The other container MAGU5690011 which was Oirst examined was taxed only Rs607801, when again checked by Appraising OfOicer Muneer Ahmed Barohi and DC Ammar Ahmed Mir it emerged as
worth of Rs8942647 in head of taxes. The both containers are carrying expensive watches, frames, optical power glasses, mini remotes, wall clocks, optical units and other valuables. The containers
were attempted to be cleared by showing Goods Declaration (GDs) number KAPN-HC200439 and HC200438. The containers could damage to the national exchequer aboutRs 15 million rupees.
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Pakistan Customs reshuffles officials KARACHI: Chief Collector Appraisement South has notified transfers and postings of principal appraisers and appraising officers. PA Shahid hussain Rizvi is moved from Dorectorate of Transit Trade to MCC Port Qasim. PA Mohammad Sualeh Kalhoro is moved from MCC Appraisement East to MCC Port Qasim. PA Sajid Ali Bhutto is moved from MCC Appraisement East to MCC Appraisement West. PA Ghulam Haider Peerwani is moved from MCC Appraisement East to MCC Appraisement West. AO Habib-ur-Rehman is moved from PCA Karachi to MCC Port Qasim. AO Syed Mansoor Azam is moved from IOCO Karachi to MCC Port Qasim. AO Zaman Jamali is moved from MCC Port Qasim to PCA Karachi and AO Mohammad Azhar Shafi is moved from MCC Port Qasim to IOCO, Karachi.
court awards imprisonment to women involved in smuggling KARACHI
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ustoms Court Judge Syed Faiz Rasool Rashdi has awarded 16 days imprisonment and Rs 50,000 fine each to women smugglers, Samina Rafiq wife of Rafiq Ahmed Ansari and Shahina Sattar daughter of Sattar Ahmed, on pleading guilty. The two were booked in separate cases of attempting to smuggle contraband mobile phones and auto parts from Dubai to Karachi. In default of payment of fine, they shall go through further two months imprisonment in Central Jail Karachi. During the hearing, both accused women appeared before the court and moved application for pleading guilty, therefore, the court framed charges against them and read over
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and explained to the said accused in language which they understand very well viz Urdu and they were asked if they want to plead guilty to the charge or claim to be tried, both replied in pleading guilty and left themselves on the mercy of the court. After the hearing, the court awarded 16 days imprisonment (already undergone period) and Rs 50,000 fine each of the two women. According to the prosecution, on credible information, staff of the customs department intercepted the ladies at Jinnah International Airport Karachi and recovered non-duty paid 47 numbers Samsung mobile phones, 18 numbers LG mobile phones, 3 auto parts 20 kilograms worth Rs. 14, 52,000 from accused Samina Rafiq’s possession and 45 numbers, Samsung mobile phones, 25 numbers empty boxes of mobile phones valuing of Rs9,61,000 from Shahina Sattar’s possession.
Karachi
M/s Mukhtiyar & co. is not entitled to any relief, Shc told by Shazia Abid T
KARACHI
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he Sindh High Court (SHC) suspended the operation of impugned demand notice for attachment of bank account for recovery of Rs01.3million on a constitutional petition Oiled by Mukhtiyar Burki, proprietor of M/s Mukhtiyar & Company against the recovery notice for attachment of its account issued by Assistant Commissioner Inland Revenue Range-A, Unit-III Zone-II, RTO-III Karachi. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition. During the hearing, Shazia Abid, Commissioner Inland Revenue, Zone-II RTO-III Karachi, submitted a statement and stated that petition is not maintainable in the law and or the facts of the case as petitioner, without availing the remedy available in the law, has approached the SHC without any legal and factual justiOication and therefore has attempted to bypass and abandon the forum available in the law which is not permissible in view of the provisions of clauses (1) of article 199 of the constitution of Pakistan. In
the light of above submissions, it is respectfully prayed that the instant writ petition may graciously be dismissed and no interim relief be granted by the SHC as the petitioner is not entitled to any relief in this regard. After the hearing, court continued the interim order and adjourned the matter for April 26, 2017. The court had suspended the operation of impugned demand notice issued by Assistant Commissioner Inland Revenue Range-A, Unit-III Zone-II, RTO-III Karachi.
Earlier, counsel for the petitioner stated that when the petitioner approached his bank for making business transaction, the manager of the ban said that his account is attached/debit/ locked/ blocked as the direction of Assistant Commissioner Inland Revenue Range-A, Unit-III Zone-II, RTO-III Karachi, who produced the notice issued under section 48 (1) (ca) of the Sales Tax Act-1990 by the said respondent for attachment of bank account for recovery of alleged sale tax demand of Rs01.3million.
customs values of Billiard table revised
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KARACHI
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he Directorate General of Customs Valuation has revised the customs value of Billiard table and parts/accessories through Valuation Ruling No 1126/2017 under Section 25A of the Customs Act 1969. It has been observed that the Billiard table and parts/accessories thereof are being assessed at different customs values at different customs stations. For the purpose of uniform assessment, this Directorate General initiated an exercise for determination of customs values of the subject goods.
Meeting with stakeholders was held on 27-03-2017 and the importers were requested to furnish the invoices of imports during last three months showing factual value. Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. 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 difference in price (excluding duty and taxes) to substantiate that the beneOit of difference in price is passed on to the local buyers.
Friday April 28, 2017
The meeting was attended by different importers. The importers, during the meeting agreed that the prices of Billiard Table and Parts/Accessories thereof should be determined under Section 25A in light of prices in the international market, for uniform applicability. They, however, did not submit any corroboratory evidence/documents in support of their proposed values. They requested that they might be allowed some time to furnish evidences and other documents in support of their contentions but failed to submit any such document, even after passage of considerable. Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at value of Billiard Table and Parts/Ac-
kpt handles 13.18m tons cargo during 3Q KARACHI
u k khAN
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he Karachi Port Trust (KPT) handled a record tonnage cargo during the third quarter (January-March) of this fiscal year, showing a significant growth. The port handled 13.18 million tons cargo in the third quarter of fiscal year 201617. The port handled total handling including import and export 4.416 in January, 4.302 in February and 4.469 in March 2017, according to Data compiled by Traffic Department of the Karachi Port Trust (KPT). The port also handled a record number of containers during the period; it handled 597,000 containers. The premier port of Pakistan handled total of 2.65 million tons of exports with 0.867 million tons in January, 0.914 million tons in February and 0.870 million tons in March of 2017. It handled 10.536 million tons of imports including 3.549 million tons in January, 3.388 million tons in February and 3.599 million tons in March of the year. The movement of ships also remained fairly high as 470 vessels called at the port in the quarter with 153 in January, 156 in February and 161 in March.
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cessories thereof. Transaction value method provided in Section 25 (1) was found inapplicable owing to wide variation in the values being declared to the customs and incomplete descriptions. Meanwhile, The Directorate through initial investigation found need to determine values of Enameled Winding Wire in the light of prevailing prices in the international market under Section 25A of the Customs Act, 1969, for uniform applicability, owing to such evidence of mis declaration. Therefore, this Directorate General initiated an exercise for determination of customs values of Enameled Winding Wires/Copper coated Aluminum winding wire under Section 25A of the Customs Act, 1969.
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Qatar to sell up to $900m shares in Santander’s Brazil unit Friday April 28, 2017
World
DOHA: Qatar Holding is selling as much as $900 million in shares of Banco Santander’s Brazilian unit, according to a prospectus filed on Wednesday. The Qataris are offering 80 million units that are composed of one common share and one preferred share in Banco Santander (Brasil SA) and will be sold in an international sale being underwritten by banks including Credit Suisse Group AG and Bank of America’s Merrill Lynch unit, according to the prospectus. Units are being offered in the form of American depositary shares, which closed at $9.77 yesterday on the New York Stock Exchange.
Border guards foil drug smuggling attempt
Swiss current account surplus widens by $5.04b BERN
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order Guards foiled during the part 48 hours, an attempt to smuggle a large amount of drugs by three people who tried to cross from Syrian into Jordan, according to a military source at the General Headquarters of the Jordan Armed Forces-Arab Army. The source said that the Border Guards applied the rule of engagement forcing the inOiltrators to Olee back to the Syrian territories. Upon a search of the area, Border Guards found 542 palm-sized sheets of hashish, 28,000 Captagon pills as well as a number of automatic weapons and referred them to concerned authorities. Meanwhile, Acting Foreign Ministry secretary general Bashir Zu’bi on Wednesday signed a joint declaration on nuclear safety with French
VAt to hit off-plan property sales in uAe ales of off-plan properties in the UAE are expected to see a temporary downturn after authorities confirmed the new value-added tax (VAT) would be applied to the first sale of a residential property. In a briefing with tax advisors, the UAE Ministry of Finance (MoF) said residential property sales and leases would be exempt from VAT, with the exception of the first sale of new residential property. Sales and leases of commercial properties will be taxed at the standard VAT rate. The UAE has said it will implement VAT from January 1, 2018. In Dubai, the country’s most active real estate market, VAT is the latest measure to affect the first sale of a residential property. During the emirate’s real estate boom leading up to 2008, new projects were sold offplan within hours of being bought, in a process called ‘flipping’. –CB Report
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Ambassador to Jordan David Bertolotti, the Jordan News Agency, Petra, reported. The declaration stipulates that Paris puts at the disposal of Jordan its expertise in the Oield of preventing and detecting nuclear materials smuggling, and responding properly to such attempts. France will also help prepare Jordanian experts in physical protection of nuclear and radiant materials who take part in missions with the
International Atomic Energy Agency. The signing is part of the government’s follow-up on the implementation of His Majesty King Abdullah’s initiative which called on building international capacities in the Oield of combating the smuggling of nuclear and radiant materials, launched at nuclear safety summits held in Seoul, the Hague and Washington in 2012, 2014 and 2016 respectively, according to Petra.
France’s Macron says german trade surplus harmful to eu economy
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rance’s independent presidential candidate Emmanuel Macron, tied with far-right candidate Marine Le Pen in polls before the election, said Germany’s large trade surplus is harmful to the eurozone economy and called for more balance. “Germany beneOits from the imbalances within the euro zone and achieves very high trade surpluses,” centrist candidate Macron said in an interview published Monday with Germany’s Funke Medien-
gruppe and France’s Ouest-France newspaper. “Those aren’t a good thing either for Germany or for the economy of the euro zone. There should be a rebalancing.” Germany’s growing export surplus has raised concerns for the global economy as well as the European Union after reaching a record in 2016. U.S. President Donald Trump’s trade adviser accused the nation of exploiting a “grossly undervalued” euro. –CB Report
witzerland’s fourth-quarter (Q4) current account surplus widened by 5 billion Swiss francs ($5.04 billion) year on year to 22 billion francs as surpluses in services and in trade in goods both rose, data from the Swiss National Bank showed on Friday. The financial account balance the increase in the net international investment position resulting from cross-border investment rose by 18 billion francs, mainly due to stockpiling an extra 21 billion in reserve assets, it said. The net international investment position increased by 83 billion francs in the fourth quarter to 4.482 trillion francs, helped by exchange rate gains on assets denominated in dollars. For 2016 as a whole the Swiss current account surplus narrowed by 5 bil-
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lion francs to 70 billion. Meanwhile, France and Switzerland have signed an international agreement on the tax system applicable to EuroAirport Basel Mulhouse Freiburg (EAP). The agreement was signed by Swiss Federal Councillor Didier Burkhalter and the French Secretary of State for European Affairs, Harlem Desir. The agreement aims to establish a long-term legal regime to ensure that the airport and its businesses remain attractive and continue to develop. Under the deal, Swiss value-added tax will be levied in the Swiss area of EAP. France and Switzerland will split the receipts from corporation tax paid by EAP, with all stakeholders taking a share. Companies in the Swiss area will pay French income tax and Swiss capital tax. However, they will not be liable to the main local ancillary taxes levied in France, to which the Swiss tax is considered equivalent. The French Directorate for Civil Aviation will be compensated for services provided in the Swiss area of the EAP.
egypt inks first oil deal with Iraq gypt has agreed to import one million barrels of Iraqi oil a month, Minister of Petroleum Tareq el-Molla announced. The contract for the deal will be signed within days, he added in a press conference at the Cabinet headquarters. Molla expects the Oirst shipment to reach Egypt on May 1. The ship capacity is up to two million barrels. A total of 12 shipments will reach Egypt a year, he added. “This step is very good as it’s the Oirst cooperation with Iraq in the direct import of crude oil,” said Molla, adding that the contract will be concluded between the Egyptian Petro-
leum Authority and the Iraqi Petroleum Company. Meanwhile, Taiwan is increasing oil imports from northern Iraq as local reOiners take advantage of an open arbitrage to buy high-sulphur crude that can replace supplies cut by Opec. State-owned CPC Corp bought one million barrels of Kurdish KBT crude for the Oirst time in the second quarter, and Formosa Petrochemical Corp has resumed purchases of this grade after a near nine-month break, company ofOicials said. Oil tanker Kriti Sfakia loaded one million barrels of the crude at Ceyhan, Turkey. –CB Report
china slowdown drags on taiwan tech sales
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Sales at Taiwan’s major tech companies decelerated sharply pressured by a slowdown in Chinese smartphone makers and an unfavorable foreign exchange rate for the export-reliant electronics sector. Total revenue of the 19 tech
companies monitored by Nikkei Asian Review went up 2.67% from a year ago to 885.5 billion New Taiwan dollars ($28.97 billion) in March, slowing substantially from the more than 12% growth yearover-year in February. In March, 11 out of 19 major tech companies reported a sales increase from a year ago, compared with 18 in February. Overall, Taiwan’s exports also
slowed, rising just 13.2% year-onyear in March, from 27.7% in February. “The major factor that led to a growth deceleration in March is the strong Taiwanese dollar and the substantial slowdown in orders from Chinese device-makers,” said Jeff Pu, an analyst at Yuanta Investment Consulting. Pu said weakening demand for the iPhone 7 range also hurt sales at Apple suppliers.
Revenues at major Apple suppliers on NAR’s watch list together increased less than 1% in March from a year ago. Key iPhone assembler Hon Hai Precision Industry, also known as Foxconn Technology Group, saw sales rise 0.61% yearon-year to NT$341.69 billion in March while the revenue of its smaller rival Pegatron dropped 16.87% from a year.
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Nepal Airlines Corporation puts Boeing 757 on auction KATHMANDU: The national flag carrier, Nepal Airlines Corporation, has announced a global tender for the auction sale of one of its Boeing 757 aircraft on “as is where is” basis. The minimum auction price for the B757-200 9N-ACA aircraft, which was manufactured 30 years ago, has been set at USD 1.71 million. NAC asked the interested parties to submit a sealed tender by March 24. It said the tender shall be accompanied by a bid bond for an amount of five per cent of the bid amount or bank guarantee.
oman to seek $5b bank finance for $7b Duqm refinery project uqm Refinery, a 50:50 joint venture between the Sultanate’s state-owned Oman Oil Company and Kuwait Petroleum International, is seeking 65 per cent of its $7 billion capital expenditure for building the refinery from international and local lending institutions, a top-level official of the Kuwaiti firm told journalists. He was talking to journalists after signing a joint venture agreement for building the 230,000 barrels per day capacity refinery here on Monday. Bakheet Shabib Al Rashidi, chief executive officer of Kuwait Petroleum Ltd, said that the joint venture has already started initial discussions with financial institutions for securing the required finance. Duqm Refinery is aiming to get $5 billion as loan of the total cost of the project at $7 billion. And the company is aiming at reaching a financial closure for the project by the year-end, added Hilal Al Kharusi, executive managing director of Oman Oil Company. –CB Report
World Customs
B’desh cIID seizes cigarettes worth tk1.5m at airport
ustoms officers at Kuwait International Airport arrested an Arab man in possession of 14 pieces of hashish which he had hidden in empty cigarette packs. The man was taken to the proper authorities to face charges. Meanwhile, Nuwaiseeb land border outlet officers caught a Saudi national in possession of illicit tablets. The tablets were hidden in his car. Customs officers found the drugs after searching the man’s vehicle. In other news, Jahra municipality branch inspectors carried out a campaign on commercial stores recently, during which they issued 27 citations. Kuwait Fire Service Directorate (KFSD) celebrated the graduation of the sixteenth batch of specialized officers, and sixth batch of officers who graduated with General Secondary Certificate. –CB Report
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Malaysian parliament approves tourism tax law he Malaysian parliament has passed a tourism tax law that some say could harm hotel operators in the country. However, other analysts say the impact of the new tax will be minimal. The tourism tax law allows the Malaysian government to impose a tourism tax on a hotel stay at a rate set by The Tourism and Culture Minister. According to media reports, the amount of the tax would vary depending on the star rating and occupancy rate of the hotel. The tax would provide a sustainable fund for the development of Malaysia’s tourism industry, according to government officials. It’s not certain when the tax would take effect and concern has arisen that the levy creates an uneven playing field between licensed and unlicensed hotel operators. Of particular concern is Genting Malaysia which has been investing heavily in a revamp of its Resorts World Genting casino complex, Malaysia’s only casino resort. The company currently operates seven hotels in Malaysia, with more than 10,000 rooms in total. The firm also runs casinos in the United States, the Bahamas and the United Kingdom. Meanwhile, About 25,000 of the more than 437,000 companies registered nationwide under the Goods and Services Tax (GST) are still not sending their payment statements to the Customs Department. –CB Report
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customs officers arrest passengers with drugs
Friday April 28, 2017
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man has been detained for illegally importing cigarettes worth an estimated Tk1.5 million including tax, at the Shahjalal International Airport. Muhammad Belal, Olying in from Dubai on a Kuwait Airways Olight on early Saturday, had brought 51,000 cigarettes, the Customs Intelligence and Investigation Directorate (CIID)
said. “We found 255 cartons of cigarettes on him,” Customs Intelligence Director General (DG) Moinul Khan said. The seized cigarettes included 200 cartons Mond, 41 cartons of 303 and 14 cartons of Benson & Hedges. Bangladesh prohibits importing foreign-made cigarettes that do not have anti-smoking warning written in Bangla on the packets. CIID ofOicials said the seized cigarette packets did not have warning written in Bangla. They said they suspected the man had smuggled the products to evade high tariff (nearly 450%) on
cigarette. Meanwhile, Export receipts from some non-apparel sectors dropped in July-March mainly because of a gas shortage in the country, volatile economic conditions in the European Union and the effects of Brexit, according to industry people. Some of the sectors that have potential but witnessed poor earnings in the Oirst nine months of the current Oiscal year are frozen and live Oish, shrimp, petroleum byproducts, Oinished leather, specialised textiles, ceramics, bicycles, electronics and terry towel.
$3.3 billion trade surplus in Iran’s mining sector
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TEHRAN
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ran exported more than 57.68 million tons of mineral products worth over $7 billion during the previous Oiscal year (March 201617), registering a 38% and 17% growth in trade volume and value respectively compared with the year before. Mineral exports accounted for 44% and 16% of Iran’s total export volume and value during the period respectively, according to the
Iranian Mines and Mining Industries Development and Renovation Organization. The mining industry accounts for only about 5% of Iran’s GDP. Mineral imports last year stood at 5.89 million tons worth $3.7 billion, registering a 26% and 17% decline in volume and value respectively year-on-year. Imports made up 18% and 8% of all Iranian imports in terms of volume and value respectively during the year. Crude steel and steel products took the lion’s share of exports in terms of value, as 6.69 million tons worth $2.69 billion
were shipped overseas during period, up 49% and 0.3% in weight and value respectively YOY. Iron ore followed with 21.19 million tons worth $818 million, up 55% and 56% in weight and value respectively. Copper and copper products came next with 810,138 tons valued at $662 million, up 147% and 131% in weight and value respectively. Copper shipments recorded the highest growth in volume and value among all mineral commodities after precious metal exports. Other exported mineral commodities included ce-
ment with 12.76 million tons worth $496 million, stones with 5.38 million tons worth $329 million, zinc with 192,654 tons worth $258 million, aluminum with 193,804 tons worth $238 million, lead with 159,661 tons worth $220 million, chrome with 506,430 tons worth $77 million and precious minerals (gold, silver, etc.) with 493 tons worth $47 million. Ferrous products with 29,361 tons worth $46 million, coal with 279,179 tons worth $28 million, molybdenum with 3,622 tons worth $27 million.
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Two drug peddlers fined & jailed Friday April 28, 2017
Lahore
LAHORE: A Special Court of the Anti-Narcotics Lahore has sentenced 21-month imprisonment and cash penalty to a culprit in a case of drugs selling. An accused Muhammad Afzal was arrested by the Anti-Narcotics Force from a nearby area of Kasur city in drug smuggling. The ANF recovered 1.4 kg heroin from his possession. T he ANF registered a case against him. A team of the ANF prosecution, after completion of investigation, presented a complete investigative challan against the accused before the court where Anti-Narcotics Court sentenced him one year and nine months prison and payment Rs21000 cash penalty.
court extends physical remand of suspect involved in smuggling
central region collects rs101b duty, tax in nine months
LAHORE
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he Special Federal Court of Customs Taxation and AntiSmuggling has approved the extension of two days in physical remand of a suspect who was arrested by the customs authorities from Lahore on charges of smuggling powder milk by showing it as plastic raw material. Sources told Customs Today that Zahid Rasheed was booked by the customs intelligence team while he was trying to smuggle a huge quantity of powder milk of different brands. The Customs intelligence, on secret information, intercepted a truck in suburbs of Lahore city and found it loaded with international branded powder milk. After that the customs intelligence
rto-II issues notices to housing societies he Regional Tax Office-II (RTO-II) of the Federal Board of Revenue (FBR) issued notices to housing societies due to evasion of federal excise duty (FED). According to details, the RTO-II has issued notices to four government and private housing societies which have failed to pay their tax liabilities. The societies to whom notice are issued included Irrigation Housing Scheme for tax evasion of Rs 43 million, Al-Karam City for tax evasion of Rs 2.8 million, King Town for tax evasion of Rs 1.5 million and Haidree Home Housing Society for tax evasion of Rs 5.21 million. The Regional Tax Office-II ordered to submit their replies within seven days of notices. Source told Customs Today that if the housing societies did not submit their replies and all relevant record, then FBR will take stern action against the defaulters under the law. –CB Report
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raided a warehouse and recovered 9,349 bags of powder milk of different brands. Weight of the recovered powder was 232,000 kilogram. Source told Customs Today that worth of the recovered powder milk is Rs 70 millions. Accused Zahid Rasheed has made a huge loss to the national kitty in the wake of taxes and duties. Sources said that smuggled milk is made of America, Turkey, Holland, Korea and India. All of the milk was smuggled from these countries by different routs especially from Afghanistan. A team of customs investigation on Monday presented the accused Zahid Rasheed before the court of Ch Aqal Hussain special judge in the court of customs taxation and anti smuggling and asked for remand of Oive days to complete investigation from the accused. After listening arguments from both sides the customs court handed over the accused to investigation team for two days.
LAHORE
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ustoms Central Region has collected Rs101786 million all duty and taxes during the nine months of Oinancial year 201617 (July-March). As per details the Customs Appraisement Lahore collected Rs48413 million during the Oirst nine month while Customs Preventive collected Rs22710 million during the nine month. On the other hand, the Collectorate of Multan collected Rs22606 million during the period under review. In the same way, the Collectorate of Customs Faisalabad collected Rs8055 million during the nine months of Oinancial year 201617. Overall the Central Region collected all duty and taxes from all the four Collectorates worth Rs101786
million. Sources said that Chief Collector of Customs Zeba Hai Azhar has instructed all the collectors of the four Collectorates to work hard to achieve the targets given by the board and also motivate the subordinates to use all available resources
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to gather as much revenue as they can do to achieve the targets. It is further informed that the new chief collector of customs Zeba Hai Azhar has been holding periodical meetings with the ofOicials of the four Collectorates
prA recovers appreciable rs12billion customs Appellate tribunal hears 16 cases ustoms Appellate Tribunal’s Di- Bristol Mayor and directorate of Post revenue in nine months vision Bench-II, comprising Ju- Clearance Audit (PCA) Lahore Rudolf
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he Punjab Revenue Authority has achieved a high revenue target in Oirst nine months of the Oiscal year of 2016-17 from the telecommunication sector. According to sources of Customs Today, the Punjab Revenue Authority has marked a new high Oigure in recoveries from telecommunication sector with an amount of Rs12billion. This amount is 39 percent more than the same period of the Oiscal year of 2015 16. The authority has also recovered
a huge amount of taxes from services sector with an amount of Rs11billion in the Oirst nine months of the Oiscal year of 2016 17. Chairman Raheel Sadiqui congratulated the ofOicers and staff of the Punjab Revenue Authority (PRA) on setting a new revenue collection in just nine months. On contact with the PRA chairman ofOice, Customs Today was informed that this is the highest collection ever recorded by any tax collection agency at sub-national level in nine months. –CB Report
dicial Member Omer Arshad Hakeem and Member Technical Imran Tariq and single bench-II comprising Technical Member Imran Tariq, heard 16 cases and adjourned all of them until the next hearing. The Customs Appellate Tribunal single bench-II adjourned the hearing of Oive cases, including Muhammad Latif versus customs Lahore, Customs Lahore versus Kaleem Saleem, directorate of Post Clearance Audit (PCA) Lahore versus Zain Enterprises, directorate of Post Clearance Audit (PCA) Lahore versus
Pakistan. The Division Bench-II heard 11 cases including Farhan Saleem versus Directorate of Intelligence and Investigation Faisalabad, Abdul Bari versus customs Faisalabad, Customs Faisalabad versus Iftikhar Ahmed, Ahmed Shah versus customs Multan, and Maxi Inch versus Valuation Lahore. On Wednesday, the tribunal heard cases of Master Link versus directorate of Intelligence and Investigation Lahore, Abid Butt versus customs Lahore, Raaz Muhammad versus Directorate Multan. –CB Report
pcA detects duty, tax evasion by M/s Anwar & Sons
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LAHORE
cuStoMS BuLLetIN report www.customsbulletin.com
ustoms Post Clarence Audit (PCA) has summoned M/s Anwar & Sons in duty and tax evasion of Rs100141 million in import of tarpaulin. The PCA Lahore observed that the import clearances data against
HS Code 6306.1210 effected from various Model Customs Collectorate during the calendar years. 2012 and 2013 revealed that inadmissible concession of sales tax and value added sales tax under the SRO 1125()/2011 dated 31.12.2011, wrongfully availed on the import of tarpaulin i.e. sun shedding which is speciOically excluded from ambit of the said SRO and hence was not en-
titled for such beneOit. It has been observed that importer had imported various consignments consisting of Tarpaul and got it cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/2011 dated 31.12.2011. Hence, it was said that the importers have short paid an amount Rs100141 sales tax, additional sales tax and income tax due to wrongful,
concession under the SRO I 125(D/2011 dated 31.12.2011. The importer was asked to pay above mentioned short paid amount of duty/ taxes within 10 days of receipt of this letter positively. he importer was told in case they do not agree with the audit observation; they may provide the written clarification along with supporting.
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Essar plans Rs 10,000 crore port in Gujarat WASHINGTON: Essar Ports Ltd, a leading port operator in the country with a current capacity of 140 million tonnes per annum (mtpa), is planning to build a Rs 10,000 crore greenfield commercial port in Gujarat’s Dwarka, a senior company official said. Besides, with its modernisation project at its Vishakhapatnam port likely to be completed by September, the company also expects 50 per cent growth in cargo from the port. Rajiv Agarwal, CEO and managing director of Essar Ports Ltd confirmed that the company has signed a memorandum of understanding (MoU) with Gujarat Maritime Board (GMB) which administers and regulates the 41 state-owned non-major ports of Gujarat during the Vibrant Gujarat Summit in January this year.
Malaysia to help develop ports, shipping industry in pakistan alaysia on Wednesday expressed keen interest to help develop projects like Ferry Service operation, construction of dedicated terminals at Pakistani ports and establishment of industry in Gwadar Port Free Zone. Both the countries agreed that a joint working group on maritime cooperation of Pakistan and Malaysia may be established for boosting maritime cooperation. These decisions were reached at a meeting held between a high level delegation headed by former Prime Minister of Malaysia, Abdullah Ahmad Badawi and Pakistan’s Minister for Port and Shipping Mir Hasil Khan Bizenjo. The visiting delegation from the brotherly country included leading industrialists and businessmen. The meeting discussed in threadbare and explored possibilities of cooperation and invest-
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ment in the shipping sector of Pakistan. The visiting delegation was briefed by Mir Hasil Khan Bizenjo on the ongoing projects being executed by the ministry and the future plans for development of maritime sector. The Minister for Ports and Shipping emphasized the importance of China Pakistan Economic Corridor (CPEC) and Gwadar Port stating that the port held a central place in the CPEC and would be a transshipment hub in future. He said the government had announced incentives, including income tax and customs duty exemptions for Gwadar Free Zone Area. The participants were briefed that the ministry had taken an initiative to allow the public and private sector to start the ferry service to facilitate tourists and Zaireen (pilgrims) to Iran and the Middle East, and to stimulate economic growth through tourism industry. –CB Report
Ports & Shipping
Norway to build world’s first ship tunnel at sea OLSO
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orway on Wednesday unveiled plans to build the world’s Oirst sea tunnel to pass through a mountain, avoiding dangerous waters that intimidated even the Vikings.Built to bypass the Stad peninsula, a storm-swept area in western Norway, the Stad ship tunnel will be 1.7 kilometres (one mile) long and 36 meters wide, making journeys safer. “The Stad tunnel for boats will Oinally be built,” said Norwegian Transport Minister Ketil SolvikOlsen, presenting a comprehensive transport plan for the period 20182029. “The government is now ensuring a safer and more reliable passage of the most dangerous and harsh waters for the transport of goods along the Norwegian coasts,” he said in a statement. The North Sea is roughed up by Oierce winds off the peninsula and many ships wait for storms to abate before continu-
ing their journey. Even the Vikings, who were talented sailors, preferred to avoid the waters, instead transporting their boats by land. Tunnels for boats exist in other parts of the world such as the Canal du Midi in France, but the Stad tunnel will be the Oirst to accommodate ships up to 16,000 tonnes for freight transport. and passengers, includ-
ing the iconic Bergen-Kirkenes Coastal Express, which connects the Nordic nation’s south and north. The project is estimated to cost 2.7 billion kroner (295 million euros, $315 million). It should take between three and four years to build, with work to begin in the Oirst half of the multi-year plan, the government said.
Friday April 28, 2017
cost of Savannah port project swells in federal estimate eepening Savannah’s port in order to accommodate larger vessels coming through the Panama Canal will cost 38 percent more and take two years longer to complete than initially expected, according to a key federal agency. The U.S. Army Corps of Engineers estimated that ongoing work to deepen the harbor’s shipping channel from 42 to 47 feet will cost $973 million, or $267 million more than earlier projections. It also said the project is now scheduled to be completed in January 2022. The news is a major setback for a project that’s been in the works for more than a decade and has united Georgia politicians from both parties. Gov. Nathan Deal’s office declined to comment. A corps spokesman said the spike in price can be attributed to “recent increases in the cost of dredging, development of complex designs on unique features and a 24-month timeline extension.”The spokesman said the two-year delay was in part to accommodate “measures that ensure contracts are awarded fairly and in keeping with the best value to the taxpayer. –CB Report
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chennai port struggles to drive up rail volume C
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cuStoMS BuLLetIN report www.customsbulletin.com
onverting cargo from road to rail, aimed at easing chronic congestion at Chennai Port, continues to be a struggle for authorities at India’s second-busiest public container harbor. Chennai’s rail share in Oiscal year 2016 to 2017 through the end of March was down to 5.5 percent from 6 percent in the prior year, according to an analysis of port statistics obtained by JOC.com. During the year, inland export-import volumes moved by rail totaled 83,275 twenty-footequivalent units (TEUs) out of the port’s total throughput of 1.49 million TEUs, versus 93,494 TEUs and 1.56 million TEUs, respectively, last year. By contrast, Chennai’s share of over-the-road freight stayed almost Olat with the previous year, at 94 percent, or 1.4 million TEUs, com-
pared with 1.46 million TEUs, the data analysis shows. The number of container ship calls at the port last year decreased to 705 from 755 previously, reOlecting the loss of some mainline services to nearby private ports such as Kattupalli and Krishnapatnam. At the same time, Chennai’s overall average container dwell times marginally improved during the year, to 2.63 days from 2.95 days in Oiscal 2015 to 2016, productivity statistics show. The Chennai port complex encompasses DP World-operated Chennai Container Terminal and PSA International’s Chennai International Terminals, with a combined capacity of roughly 3 million TEUs per year. Congestion caused by lengthy truck turnarounds has long been an operational nightmare for shippers and container lines using terminals at Chennai and as a result, growth at the largest East
Coast public gateway has remained stagnant for years. To address those issues, the port authority in coordination with stateowned rail operator Container Corporation of India (Concor) has introduced new train services, including time-guaranteed runs, and tariff incentives. Accelerating that push, the port authority is also working with railway authorities to build a dry port at Jolarpet, about 140 miles from the harbor, to help capture freight hauled by trucks on the route, which accounts for roughly 50,000 TEUs annually, according to port estimates. Although those are positive signs, the solution is not so simple given the huge price differential between rail and road, and strained rail networks. But the Narendra Modi government is trying to turn things around. It has set up a separate company Indian Port Rail Corporation Limited based on equity participation from major
port authorities and Indian Railways to speed development of last-mile rail projects. This company has already been awarded contracts for 22 port-rail projects with a total estimated investment of Rs. 20,000 crore (about $3 billion). Further, authorities are working toward an “integrated multimodal logistics and transport policy” to switch from a point-to-point transportation system to a hub-and-spoke model that will facilitate the movement of domestic freight on lower-volume corridors. That plan provisionally calls for construction of 50 economic corridors nationwide and a revamp of major feeder and inter-corridor routes. “Transformation of the logistics sector is only possible through an integrated system-based approach that cuts across modes of transport, administrative geographies, and integrates capital investment with regulatory and policy development.
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DG Valuation revises customs values of dry coconut KARACHI: The Directorate General of Customs Valuation has revised the customs value of dry coconut (khopra) through Valuation Ruling No 1134/2017 under Section 25A of the Customs Act, 1969. According to details, the customs values of dry coconut/khopra of various types from different origins were determined vide Valuation Ruling No. 1033/2017 dated 01-02-2017. Some importers/stakeholders agitated the values before the Director General Customs Valuation under section 25-D of the Customs Act, 1969.
Friday, April 28, 2017
CUSTOMS BULLETIN
customs I&I seizes NDp cigarettes worth rs36.5m on Dg Shaukat’s directive ISLAMABAD cuStoMS BuLLetIN report www.customsbulletin.com
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he Directorate General Customs Intelligence and Investigation (I&I) Peshawar seized 526 cartons of foreign origin smuggled cigarettes worth Rs36.5 million. According to sources the Customs I&I Peshawar has foiled a major attempt of smuggling huge quantity of high quality branded foreign origin cigarettes into the country. Director General Customs I&I Shaukat Ali received a tip-off regarding transportation of smuggled cigarettes. He immediately constituted a special team and directed them to start searching the vehicles at entry/exit points of the province. While searching, the customs I&I team intercepted a suspicious ten wheeler Hino Truck stuffed with foreign origin smuggled cigarettes near ACL, Bridge Nowshera. Thorough search and examination of the truck led the recovery of foreign origin smuggled high quality cigarettes brands including Milano cigarettes made in UAE 286 cartons, Pine cigarettes made in Korea 144 cartons, Napoli cigarettes made in Italy 30
cartons, MOND cigarettes 28 cartons, Lips cigars made in USA 24 cartons, ZEN cigarettes made in UAE 8 cartons and Milano ciga-
rettes small 6 cartons. The smuggled cigarettes along with the truck have accordingly been seized for violation of the provi-
sions of the Customs Act 1969. The estimated value of the seizure is Rs40.5 million (goods Rs36.5 million and truck Rs4 million).
The customs intelligence and investigation team lodged an FIR and arrested one accused. Further investigations are underway.
Dg Valuation revises value of printed decorative papers KARACHI
wAQAr AhMeD ANSArI www.customsbulletin.com
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The Directorate General of Customs Valuation revised the customs value of printed decorative papers through Valuation Ruling No 1127/2017 under Section 25A of the Customs Act, 1969. The Customs values of printed decorative papers were circulated vide VDB letter No.221 dated 28.02.2017. It was deemed
expedient to issue a Valuation Ruling hence an exercise was conducted to determine Customs values of Printed Decorative Papers in line with current price trends in the international market. Stakeholders’ meetings were scheduled on 23.03-2017 & 11-042017. All participants were requested to submit invoices of imports during last three months showing factual value, websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained, copies of contracts
made/LCs opened during the last three months showing the value of item in question and copies of Sales Tax Invoices issued during last three months showing the difference in price (excluding duty and taxes) to substantiate that the beneOit of difference in price is passed on to the local buyers. The meeting was attended by importers of printed decorative papers. The importers requested that the prices of the subject commodity were lower in the international market as Oired to the values circulated vide VDB letter No. 221 dated 28.02.2017. The clearance data and
Values prevalent in the international market were discussed at length and the values were decided after detailed deliberation on quantity, designs and type of printed decorative papers imported. Meanwhile, The Directorate General of Customs Valuation revised the customs value of inedible tallow through Valuation Ruling No 1128/2017 under Section 25A of the Customs Act, 1969. The Directorate General earlier applied audit-checks on clearance values and found unexplained variations in declared values of subject goods. As an interim measure VDB letter
Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi
No, 225/2017 dated 01-03-2017 was circulated, and the matters allied to import value of inedible tallow were subjected to further analysis. The Pakistan Soap Manufacturers Association informed of the various international pricing dynamics (mentioned below) and it was accordingly deemed expedient to issue a Valuation Ruling for uniformity and to check any discriminatory trends at clearances stage. Therefore, an exercise was conducted to determine Customs values of tallow in line with current price trends in the international market.