Tuesday, 3 April 2018 by customs bulletin

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Karachi, Tue April 3, 2018

PESHAWAR

IRFAN BAHADUR

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he Customs Dry Port Peshawar has g e n e r a t e d Rs141million extra revenue in the month of March of current Financial Year. The dry port collected a total revenue of Rs486.2million in the month of March of current Financial Year against Rs345million collected in March of previous FY201617. The Dry Port earned Rs206million of Customs Duty and an amount of Rs169.91million has been

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done through Sales Tax in March of current Financial Year. The Dry Port Peshawar showed Rs58.35million collection as Reduction Duty and an amount of Rs30.40million has been received under the head of Sales Tax on VM palm oil. In the same way, the Dry Port Peshawar generated Rs79million of AIT in the month of March of current Fiscal Year. The Deputy Collector Customs Dry Port Peshawar expressed satisfaction over the collection made during March of current FY and said that more efforts will be made to increase the revenue collection.

North Region Customs earns more revenue of Rs455 million

Final notice causes retrieval of Rs5m from M/s Kashi Computers Karachi

Customs Preventive seizes smuggled goods near Saggain Bridge

Customs values of ethyl, mythel, acetate & butyle acetate revised

Quetta Intelligence thwarts smuggling attempt of mobiles & accessories

North Region collected Rs455million extra revenue | See pAge 02 |

Adjudication-II served a final notice on a defaulter company named 125 Autos | See pAge 03 |

CustomsPreventivehasseizedtwo40-feet containersofmiscellaneoussmuggledgoods | See pAge 04 |

DG Valuation has revised the customs values of chemicals, ethyl, mythel, acetate | See pAge 09 |

Customs I&I Quetta frustrated a smuggling bid of a NDP mobile | See pAge 16 |

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Tribunal issues orders in several references against FBR’s ﬁeld oﬃces Tuesday, April 3, 2018

Islamabad

ISLAMABAD: The Customs Appellate Tribunal issued directives in a number of cases while hearing customs references involving field offices of the Federal Board of Revenue. Tribunal’s bench, comprising Member Ziauddin Wazir, dated in office the hearing on a customs case filed by M/s TCS Private Limited with the directives to submit the related record. The bench asked the parties to submit record in the case prior to the next date of hearing.

North Region customs earns more revenue of Rs455 million

ISLAMABAD

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tARIQ DeRYA

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he ASO Islamabad took into possession a huge quantity of contraband items including two NDP vehicles and two trucks full of Indian tamarind (Imli), Iranian tiles, plastic Dana (Powder) and aluminum gilot priced at over Rs20.00million during the 2nd week of March FY17-18. According to details given by Muhammand Ashfaque, Additional Collector, Anti-Smuggling Organization Islamabad that, due to a tight vigilance under the instructions of Collector, Model Customs Collectorate (MCC) Islamabad, the ASO Islamabad showed a rare performance during 2nd week of March FY17-18. During above said period, the ASO Islamabad seized one container full of imported smuggling alloy rims and tyres, one Mazda truck full of smuggling Iranian tiles while seized another truck loaded with aluminum gilot weighed 11,000kg, yet another Mazda truck full of smuggling plastic Dana weighed 7,000kg, two truckloads of smuggling Indian imli weighed 20,000kg and two non-duty-paid vehicles.

he Customs North Region collected Rs455million extra revenue during first three weeks of March FY17-18 under all the heads against the same corresponding duration of 1st to 21st of March FY16-17. According to details explained by the sources of the Customs North Region, which comprises Customs Collectorates of Islamabad, Peshawar, Sambrial and Gilgit-Baltistan (GB). It was told that, during first week of January FY17-18, the North received Rs1798.72million under all the heads against a revenue collection of Rs1343.93million under the same head during the same duration of FY16-17. The sources told CT that Customs Collectorate (MCC) Islamabad generated Rs988.55million under all the heads during Qirst three weeks of March FY17-18 while it did Rs856.74million under all the heads during the same period under the same head during previous period. The MCC Islamabad earned an extra revenue of Rs131.81million under all the heads against said corresponding duration. The MCC Peshawar got Rs939.84million of revenue under all the heads during Qirst three weeks of March FY17-18 whereas it collected Rs471.71million under the same heads during

customs impounds contraband goods and NDp vehicles worth Rs20m

the same previous period. The MCC Peshawar received an extra amount of Rs468.13million under the same head during Qirst three weeks of March FY17-18 against the same corresponding period. The sources told CT that MCC Samberial gener-

ated -Rs129.77million under all the heads during Qirst three weeks of March FY17-18 while it earned Rs15.48million under all the heads during the same previous duration of FY16-17. The Samberial created –a difference of Rs938.31million

under all the heads during said period against the same corresponding duration. The Collectorate of Gilgit-Baltistan is still closed due to heavy snowy season and is expected to be reopened on 1st week of April FY17-18.

traﬃcking of cigarettes underlies loss of Rs40b per year

ISLAMABAD

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he illicit trade of cigarettes is causing the national exchequer an estimated loss of Rs40billion annually. It was told by sources that the Federal Board of Revenue (FBR) should be appreciated for unprecedented crackdown on the illicit trade of cigarettes. The government should continue to develop and implement strategies to

combat the illegal cigarette trade in Pakistan. In this regard, the Inland Revenue Enforcement Network (IREN) FBR was established in last year who seized approximately Rs1.63 billion worth of non-dutypaid cigarette packs and raw material of illicit cigarettes. The sources told CT that, under the supervision of IREN, the RTO Peshawar conQiscated the highest quantity of illicit cigarettes of 35.6536 million packs up to March FY17-18 whereas the Enforcement

Hub I&I-IR Karachi impounded 1.25 million packs during said period whereas 1.46 million packs were seized by the I&I-IR Hyderabad, 5.35 million packs were seized by RTO Sahiwal, 350000 packs seized by RTO Faisalabad, 2.5 million packs conQiscated by BTB ZONE RTO-II Lahore and I&I-IR Lahore, 5.60 million packs impounded by RTO Sialkot and I&I-IR Lahore while 1.37 million packs were taken into possession by RTO Rawalpindi. Talking about the impact of illicit

trade in the country, the sources said that illegal trade creates a wide price-gap between the legal and tax evaded cigarettes which is the key driver of demand for tax evaded cheap cigarettes widely available across the country. It was added that it declines revenues of about Rs40billion annually. Lack of a level playing Qield for the taxpaying sector discourages both domestic and foreign investment that in turn adversely impacts the economic growth, job creation and technology

transfer in Pakistan. The total cigarette consumption has not reduced in Pakistan and rather remained stable due to the presence of cheap illicit cigarettes, the sources told. It was told that key reasons for the widespread availability of smuggled cigarettes in Pakistan include demand factors like cheaper prices and no health warnings, and supply factors like Qiscal and regulatory differential with Afghanistan, challenging border with Afghanistan, and higher proQit margins for retailers.

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Tax evasion committed by M/s Wasif & Sons uncovered KARACHI: The Research and Development Section of the Model Customs Collectorate Appraisement-East has detected a case of tax evasion of Rs12.50million by importer M/s Wasif & Sons on misusing the SRO811 (me) /2009. Source said the company imported two consignments of curtain fabrics. When the R&D Section conducted inquiry and physical inspection of the consignments then it was revealed that the M/s Wasif & Sons had no facility of manufacturing of mono-filament curtain fabric.

VR No: 922/2016 due to be revised by Surriya on 8th of may

Tuesday April 3, 2018

Karachi

Final notice causes retrieval of Rs5m from m/s kashi computers karachi

KARACHI

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he Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 922/2016 on 8th of May, 2018, it is learnt here. Surriya Butt said the department is reviewing suggestions from various importers to set the new prices of energy drinks (HS Code 2202.1010). She said some valuations issued in 2016 are being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international market. Sources told Customs Today that a petition was filed with the Customs Valuation in which change in prices of energy drinks (HS Code 2202.1010) was requested.

SRB restores St registration of wateen telecom KARACHI

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indh Revenue Board (SRB) has restored the suspension of sales tax registration of M/s. Wateen Telecom Limited with immediate eďŹ&#x20AC;ect on payment of outstanding liability. In an order for revocation of suspension, the SRB said that the representatives of M/s. Wateen Telecom Limited had paid the liabilities through pay order. The company also requested to restore the registration so they could able to generate the PSID, deposit the tax amount on the same day. The SRB restored the sales tax registration with the following conditions that the company is required to: generate PSID against said payorders immediately on restoration of registration, e-file the returns within two days of deposit of tax amount deposit the tax amount and e-file the tax returns in the time and manner prescribed under the law.

KARACHI

wAQAR AHmeD ANSARI www.customsbulletin.com

he Customs AdjudicationII served a final notice on a defaulter company named M/s 125 Autos, and recovered Rs5million from M/s Kashi Computers Karachi. M/s 125 Autos was involved in tax evasion. The company imported different types of bike parts consignment on December 12, 2017 and used the wrong PCT heading. The consignment was cleared by Examiner Shakeel Rana. After a careful investigation, the Customs Adjudication-II issued a final notice to the company on and cleared the outstanding amount of Rs4.52million. Source said that another company M/s Kashi Computers Karachi got cleared a consignment of new and used computers on January 12 and evaded tax amount of Rs5million. After the investigation, the Customs Adjudication-II served a show cause notice on the company on February 9, but it failed to clear the arrears. Collector Customs Adjudication-II issued a final notice to the company on March 5, 2018. After receiving the notice, the company deposited Rs5million in favor of the Customs Department. on March 22. Meanwhile, The Customs Adjudication-II received Rs 7.58 million in response to a final notice served on a defaulter company named M/s Glamour Star Traders.

The adjudication has also issued a show cause notice to M/s Shama Knitwear Karachi. M/s Glamour Star Traders was allegedly involved in tax evasion. The company imported commercial generator parts in the month of November 2017 which was examined through Arsalan Ghafoor who used the wrong PCT heading. After a careful investigation, the Customs Adjudication-II served a final notice on the company on 5th

After the investigation, the customs Adjudication-II served a show cause notice on the company but it failed to clear the arrears. collector customs Adjudication-II issued a final notice to the company

pcA detects tax evasion by Shahid mokeem & co

KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 11.25 million by M/s Shahid Mokeem and Company, it is learnt. Sources told Customs Today that M/s Shahid Mokeem and Company imported a consignment of commercial molding machines and its parts, and got it cleared from the Port Qasim vide

GDs on August 22, 2017 by paying customs duty at 12 percent after claiming the beneQit of the SRO 572/2007. However, the subject items were correctly classiQiable under the PCT 2489.2408 attracting customs duty at 16 percent and income tax at 8 percent, thus, by way of mis-declaration of classiQication, the company evaded/short-paid Rs 11.25 million. The goods were cleared by Examiner Tajuddin Usmani. Sources told that the importer violated the provisions of Section 56 & (9A) of the Customs Act-1969, Section 25 read

with Section 66 of the Sales Tax Act1990 and Section 12 of Income Tax Ordinance 2001 punishable under clauses (452) and 125 of Section 325(7) of the Customs Act-1969, Section 92 of the Sales Tax Act-1990 and Section 45 & 189 of Income Tax Ordinance 2001 and Section 9-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

of March. The company cleared the amount of Rs 7.58 million on Monday. Source said that another company namely M/s Shama Knitwear got cleared a consignment of Silk fabric (Thaan) on November 12, 2017 and evaded a tax amount of Rs2.87million. After the investigation, the Customs Adjudication-II served a show cause notice on company on March 13, 2018 and assured the court of clearing the amount within 14 days.

Rupee makes recovery against US dollar he Pakistani rupee on made recovery against the US dollar in open market and remained firm in interbank. As per the local money market, the US currency lost 10 paisas in open market for buying at Rs115.90 and 60 paisas for selling at Rs116.20. The dollar also added 70 paisas in interbank for buying at Rs115.20 and for selling at Rs115.40.

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Foreign Currency Account Scheme Tuesday April 3, 2018

Lahore

KARACHI: The Foreign Exchange Rates Committee of Financial Markets Association of Pakistan issued the following Base Rate. FOREIGN CURRENCY ACCOUNTS SCHEME — RATES BAY BID MAXIMUM RATES FOR PAYMENT OF INTEREST BY ETHERIZED DEALERS R A T E S U.S. DOLLARS VALUE 27-03-18 For 3 months and over but less than 6 months 2.0356% PA 2.7856% PA % PA For 6 months and over but less than 12 Months 1.1973% PA 2.9473% PA For 12 months 2.4270% PA 3.3020% PA For 2 Years 2.4270% PA 3.8020% PA For 3 Years 2.4270% PA 4.0520% PA For 4 years 2.4270% PA 4.3020% PA For 5 years.

customs Appellate customs preventive seizes smuggled tribunal reserves goods near Saggain Bridge judgments in two appeals LAHORE

LAHORE

SAJID NAwAZ

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he Customs Appellate Tribunal, Single & Double Bench, heard 21 cases and adjourned all for different dates without those cases whose verdicts were reserved. The judgments of three appeals were reserved to pass the Qinal order. The Division Bench-I, comprising Justice retired Malik Manzoor Hussain, Chairman, and Saud Imran, Member Technical, heard 16 cases including Maerk Pakistan against Directorate Multan Unit DG Khan, Beijing Prints versus Customs Faisalabad, Abdul Baseer versus Directorate of Intelligence and Investigation Faisalabad, New Allied Motors versus Customs Lahore, Barkat Ali versus Directorate of Intelligence and Investigation Faisalabad and Sun

IRSA releases 45,900 cusecs water he Indus River System Authority (IRSA) released 45,900 cusecs water from various rim stations with inflow of 45,200 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1386 feet, which was 6 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 16,800 cusecs and outflow as 16,300 cusecs. The water level in the Jhelum River at Mangla Dam was 1,050 feet, which was 10 feet higher than its dead level of 1,040 feet whereas the inflow and outflow of water was recorded as 12,500 cusecs and 13,700 cusecs respectively. The release of water at Kalabagh, Taunsa and Sukkur was recorded as 30,700, 18,100 and 3,700 cusecs respectively. Similarly from the Kabul River, 8,600 cusecs of water was released at Nowshera and 2,000 cusecs from the Chenab River at Marala. –CB Report

Crop Pesticide versus Directorate Post Clearance Audit (PCA) Lahore. Furthermore, the same bench heard cases of Ghulam Murtaza versus Customs Faisalabad, A M Steel Furnace versus Directorate Multan Unit DG Khan, Khadim Hussain versus Customs Multan, Abdul Malik versus Customs Lahore three appeals, Khan Eziz versus Customs Lahore, Shahzad Textile versus Directorate of Intelligence and Investigation Lahore, Muhammad Arshed Butt versus Customs Lahore and Arshed Fareed versus Directorate of Intelligence and Investigation Lahore. The Single Bench-I, comprising Muhammad Shabbir Gujjar, Member Judicial, heard eight cases including Sungro Pvt versus Directorate Post Clearance Audit (PCA) Lahore, Ahmed Fine Textile versus Customs Multan, Penna Oversease versus Customs Sambrial’s three appeals, Directorate of Intelligence and Investigation Multan.

m HAYAt

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he Collectorate of Customs Preventive has seized two 40-feet containers of miscellaneous smuggled goods near Saggain bridge, which were being transported to Lahore from Peshawar. Sources told Customs Today that information was received through Collector Customs Preventive that containers loaded with imported goods were brought from dry port Peshawar to Lahore after replacing the imported goods with smuggled goods. The containers were spotted near Saggian bridge and on query, the drivers of the vehicles presented bilty papers issued by M/s Rehan Cargo Service, Karachi and M/s HP Logistics, and also presented Customs GD with importer name M/s Business Solution, Rawalpindi and

customs preventive recovers huge quantity of NDp goods from AIIA

ollectorate of Customs Preventive teams deputed at Allama Iqbal International Airport foiled many attempts of smuggling and recovered huge quantity of non duty paid goods. According to the details, customs teams recovered two kilograms of gold, 115 smart mobile phones and 120 kilograms of betel nuts. Sources that customs team during routine checking recovered one kilo and twenty six grams of gold from a passenger who was arrived

from United Kingdom and was identified as Asad Hameed. Sources told that customs team also recovered 29 smart mobile phone from a passenger who was arrived from Bangkok through Thai Airways flight. During checking of Shaheen Airways flight no: 892, customs team recovered 37 mobile phones, while 34 mobile phones were also recovered from a passenger who was identified as Tariq Ali. He was arrived through Turkish Airways flight no: 714. –CB Report

M/s Business Linkers. The containers were brought to State warehouse Lahore. The representative of the owner of goods who was identiQied as Haroon Siddique appeared at the state warehouse where the examination of the containers was conducted. The goods were found to be different in quantity and description as compared with the dec-

NDp cigarettes worth Rs 0.3m seized he Federal Board of Revenue (FBR) Broadening of Tax Base (BTB) has seized nonduty paid cigarettes of various brands including Cricket and Dubai worth Rs 0.3 million from Sheikhupura area . Sources told Customs Today that that the BTB Lahore, on the instructions of Commissioner Yasmin Fatima and Additional Commissioner Azhar Jehangir, constituted a team comprising Assistant Commissioner Salman Naveed Butt, Assistant Commissioner Asim Dilshad and Nasir Jamal. The

Fto directs counsels to conclude arguments

LAHORE

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he Federal Tax Ombudsmand (FTO) has directed counsels to conclude Qinal arguments on an appeal Qiled by Abdul Ghafoor, a resident of Joharabad, against the Regional Tax OfQice (RTO) Sargodha. As per details, FTO Advisor Haji

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

larations made in the GD. Haroon Siddique failed to provide legal documents in support of lawful import or legal possession of the goods. It was established that accused including Haroon Siddique, Mohammad Faisal, Ghani Khan and Sajid Qayyum brought smuggled goods into the country in the garb of legally imported goods.

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

team raided various places in Sheikhpura and seized over 1.5 million cigarette sticks. The cigarettes were made locally and being distributed in the outskirts of Sheikhupura and surrounding areas. The FBR authorities started further investigations after registering a case of smuggling against the suspects. It is necessary to mention here that FBR directed all field formations to adopt zero tolerance policy towards smuggling. Anyone who found involved in smuggling should be dealt according to law. –CB Report

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

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LAHORE

m HAYAt

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ederal Board of Revenue (FBR) Member Customs Muhammad Zahid Khokhar has said that Customs Public School and Bilqees Sarwar Foundation are striving to breed conQidence and high self-esteem in the students to show great academic potential along with a strong sense of personal wellbeing. He was addressing the students on March 31, 2018 an event held by Bilqees Sarwar Foundation (BSF) on the occasion of book launch ceremony in collaboration with Customs Public School (CPS) to strengthen the ties between both the institutions. Mr Khokhar, who is also Chairman Customs Education Trust, Ms. Zeba Hai Azhar, Chief Collector Customs (Central) and Dr. Muhammad Saeed, Senior Advisor Trade Facilitation and Policy for Business International Trade Center, Geneva, Farhan Sarwar, President Bilqees Sarwar Foundation & CEO Haji Sheikh Noor-ud-din & Sons (Private) Limited and Bilqees Sarwar, Chairwoman of Bilqees Sarwar Foundation, were also present on the occasion. BSF and CPS management welcomed all the customs ofQicials and other reputed personalities including Dr. Tahir Khalil, MS

Tuesday, April 3, 2018

teem in the students to show great academic potential along with a strong sense of personal wellbeing.” On this auspicious event Miss Zeba Hai added, we appreciate the initiative of Farhan Sarwar from the platform of Bilqees Sarwar Foundation to support this cause by taking responsibility of the designing and printing of the “Customag” other than providing major support to CPS as managing trustee. This was a trio-ceremony to celebrate the three major achievements including, ofQicial book launch of “BSF Journey with CPS”, Launch Date for “Customag” Annual Publication of CPS (Announcement) and cake cutting ceremony of the CPS birthday to celebrate 36 years of excellence at Customs Public School. On closing ceremony, souvenirs, certiQicates and cash rewards were distributed among the teachers to acknowledge their performance, students achieving excellent results and media and communication team, Bilqees Sarwar Foundation to acknowledge their tireless d i Zah contributions towards mmad a h u t sm a m h spreading light of edut o t e s t cia er cu cation and especially appre s I e memb “ e , q d l i r sa d Bi a n playing a primitive h a l k o o ho kh role in making this blic Sc iving r u t p s s e r na o i event successful. t d custom a n d a n e

Mayo Hospital and Mr. Zahid Pervaiz, EX DG Health and honorary Vice President BSF. During this event Farhan Sarwar, President BSF ofQicially took the responsibility for the designing and printing 1000 copies of the “Customag”. He said, “BSF feels responsible to support the initiative of “Customag” by CPS to highlight the tremendous efforts of the teachers and to acknowledge and share the theoretical and artistic skills of the students.” Mr. Muhammad Zahid Khokhar said, “I appreciate that Customs Public School and Bilqees Sarwar Foundation are striving together to breed conQidence and high self-es-

r Fou denc Sarwa d confi e s to e r b udent r to t e s h e t h e t tog em in tial poten lf-este c e i s m h e g hi acad great show

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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

Need to introduce tax reforms

aroon Akhtar, Special Adviser to Prime Minister and State Minister for Revenue, has claimed that the government would review the tax structure to facilitate taxpayers, but fell short of explaining which of the department is working on the subject matter. This is one of the typical claims made by the political leaders off and on without doing anything practical on the ground. The country is facing inherent flaws in its laws and procedures in the administrative system. The international donor organizations have on the several occasions pointed out needs for introducing structural reforms in the taxation system and financial sector, but nothing has been done other than lip service. The government authorities are in the habit of taking ad hoc measures which sometime create conflicting situation and this trend has spoiled the shape of every system in this country. Taxes are imposed through issuing decrees without applying or adopting a proper procedure. As a result, unjustified taxes rates are imposed. Some of the official use or misuse their authorities during the execution of the government policies. The tax filing system should be as simple as paying utility bills. In this age of science and technology, where details of every person is already available with various government agencies, a comprehensive central collection and processing unit is required to do the job. When there will be minimum interference of the government officials and all the transactions and procedures will be implemented electronically, it will automatically increase the tax base and reduce corruption. The governmentâ&#x20AC;&#x2122;s task should be to encourage taxpayers to voluntarily come under tax net and earn as much as revenues without fear of coercion from any official agency. So far, every government agency wants to strictly implement the rules of business according to its understanding. This trend has discouraged every effort to build a strong revenue base. The tax to GDP ratio in Pakistan is the lowest in the world which should be enhanced to 20 percent. However, coercive measures would not help. There is a need to establish strong collaboration and liaison between the taxation authorities and the business community.

pressure from donor agencies S

LAHORE

DR AFtAB AFZAL

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ome reports appearing in a section of the press lend credence to the notion that recent meltdown of the Pakistani rupee was allowed under pressure of the world donor agencies. Without Qinding a tangible solution, it is regrettable that foreign lending agencies are given a free hand to blatantly impose their version of policies on this nation. The exports of the country had been dwindling for the last four years, which not only increased the size of the current account deQicit, but also limited the ability of the country to repay its external liabilities. Depreciation of the

rupee is part of the policy given by the international Qinancial institutions in the name of greater exchange rate Qlexibility. In their views, a â&#x20AC;&#x2DC;weakâ&#x20AC;&#x2122; rupee will improve competitiveness and will jump start exports. According to experts, the International Monetary Fund and the World Bank had been demanding the government to introduce structural reforms in various sectors to qualify for further loans. However, it is not a secret that reforms means imposition of more taxes on the citizens to generate additional resources to repay the loans. The term, structural reforms, has become vague in a situation where every section of the government is experiencing system failure. In

the wake of political instability, Qinancial indiscipline and mismanagement, reform programme will not bring any improvement in the current state of affairs. According to experts, investment in China-Pakistan Economic Corridor is the light at the end of the tunnel as the project has the potential to extricate the country from the economic mess. The foreign and national institutions project a growth of 5.6 percent in the gross domestic product for Qiscal year 2017-18 as compared to 4.1 percent in 2014-15. The government should also concentrate on attracting foreign direct investment from the countries other than China which will not only ensure Qinancial security, but

also geographical security from eternal enemies of Pakistan in the region. By bowing to the IMF pressure, the government has depreciated the Pakistani rupee which will have long term effects on the economy and Qinancial stability. The lowering the rupee value will hardly enable the country to improve exports as exports always depend on the performance of the industrial sector and not on the value of the currency alone. The current account deQicits, which emerge on the basis of imports of equipment, indicate faster industrial growth. Only foreign direct investment and conducive business conditions are prerequisite for increase in the growth rate.

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SHC orders ASO Preventive to release Toyota Hiace van KARACHI: Sindh High Court has ordered ASO Preventive to release an old Toyota Hiace van. A SHC division bench, comprising Justice Munib Akhtar and Justice Mrs Ashraf Jahan, earlier heard a petition filed by one Adnan who alleged that his vehicle was confiscated by ASO Preventive despite production of all relevant documents. It was an old vehicle, the counsel for petitioner submitted. The bench perusing the documents and points raised in the petition on a previous hearing ordered counsel for Pakistan Customs to produce the vehicle. the next date of hearing in the case. The respondents produced the vehicle as ordered. The bench later disposing off the petition ordered the release of vehicle. The petition was filed and decided in just a month time.

NDp tampered car taken into possession by customs car cell on actionable tip-oﬀ ISLAMABAD

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he Customs Car Cell impounded a Non-Duty-Paid (NDP) Axio Toyota Corolla vehicle priced at Rs2.5million from Islamabad. According to details given by sources of the Car Cell that it received a tip-off shared by Zulifkar Ali Chaudhry, Collector, Model Customs Collectorate (MCC) Islamabad that a NDP car is roaming in the Islamabad with the tampered status. The Customs Car Cell formed a mobile squad and carried out a raid on G-10 Kashmir Highway Islamabad and intercepted an Axio Toyota Corolla car, Model 2007, with fake number plate. The customs officials asked the possessor of the car to show any documentary proof but he was unable to do so. Sources told CT that the Car Cell took the vehicle into pos-

Tuesday April 3, 2018

National

customs values of ethyl, mythel, acetate & butyle acetate revised T

KARACHI

wAQAR AHmeD ANSARI www.customsbulletin.com

he Directorate General of Customs Valuation has revised the customs values of chemicals, ethyl, mythel, acetate and section butyle acetate vide Valuation Ruling No: 1272/2018 under Section 25-A of the Customs Act-1969. Earlier, the customs values of the subject chemicals were determined vide Valuation Ruling No.1023/2017 on January 30, 2017. There were several representations from importers and Pakistan Chemicals and Dyes Merchants Association (PCDMA) wherein they contended that the customs values determined in the existing valuation ruling are not reQlective of the prices in international markets. Keeping in view the prevailing prices of the subject goods, this Directorate General initiated an exercise for determination of the customs values of the subject chemicals in terms of Section 25-A of the Customs Act, 1969. A meeting of the importers, representatives from PCDMA and representatives from Qield formations was held on March

13, 2017, to discuss international prices of the subject chemicals. All the stakeholders requested that the said valuation ruling might be reviewed in the light of the prevailing international market prices. Moreover, the importers stated that customs values determined in the existing valuation ruling were for

imports in drum packing whereas in case the goods were imported in bulk vessels/ISO tanks they faced difQiculty during assessment. Therefore, they requested that margin of quantity and freight element may be allowed for imports in ISO tanks or bulk vessels, as has been allowed in other valuation rulings. The PCDMA

contended that their proposition of values for different types of chemicals accurately reQlects international values and they take full responsibility for any variation. As and when there are signiQicant variations, they would themselves approach customs authorities for redetermination of customs values.

SRB levy St on rental income from commercial properties session under the Customs Act 1969 and took the car to the State Warehouse where they lodged a seizure case and forwarded it to the Investigation and Prosecution (I&P) Department for further action. The car-impounding staff consisted of Superintendent Malak Abid Hussain, Inspectors Ali Raza Shah and Arshad Bin Inam along with the customs staff of Class V. The sources added that the Car Cell took into possession two NDP vehicles worth Rs3.50million during the month of March FY17-18 while it impounded 31 NDP vehicles valued at Rs125.34million during July to 16th of March FY17-18.

KARACHI

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indh government has imposed sales tax on income earned from properties rented for commercial activities, but not below Rs400,000 annually. According to a Sindh Revenue Board (SRB) ofQicial, services sales tax has only been imposed on income from renting shops, banks or other commercial operation. “There are misconceptions after the provincial parliament approved a bill, which brought rent of immovable property under the ambit of economic activity,” Mushtaq Kazimi, adviser Tax Policy of SRB said. “If an immovable property has been rented for residence then it is exempted under the law. Even if it is rented for a commercial purpose but the (rental) income is

below threshold under Income Tax Ordinance 2001 there is tax exemption too.” Kazimi said the bill approved by the Sindh Assembly stated that a renting property is subject to sales

tax on services. Though the provision was already available under the Sindh Sales Tax on Services Act 2011 the new legislation removed the ambiguity as taxpayers and tax ofQicials were

contesting on the deQinition of property. The tax on renting of property was initially brought through Sindh Finance Act 2015. The law was further amended over the period.

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SHC seeks ﬁnal arguments on petition ﬁled by M/s Haji Ehsanullah Tuesday April 3, 2018

National m/s Nisar traders served show cause notice for tax evasion

KARACHI: The Sindh High Court (SHC) directed customs department and deputy attorney general to conclude ﬁnal arguments on a constitutional petition ﬁled by M/s Haji Ehsanullah son of Muhibullah proprietor of M/S Ehsanullah & Company seeking release order of its imported old/ used Hino/Nissan Transit Concrete Mixer Lorries. A two-member bench, headed by Justice Munib Akhtar heard the petition.

tax evasion of Rs12.985m detected against Farm International & clearing Agent

ISLAMABAD

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ISLAMABAD

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he Collectorate of Customs Adjudication-II has issued a showcause notice on Tuesday against M/s Nisar Traders in connection with the tax evasion of Rs3.58million of Additional Sales Tax (AST) and Income Tax of Rs241258 by misusing the SRO 1125 (I) 2011. Importer M/s Nisar Traders on its import of fabric folding machines and parts evaded the said tax on December 21 2017 worth Rs3.58million through Goods Declarations (GDs) KAPE-HC-2457814578547, violated Section 3,4,8,7A,8 (2b),42,43 and 76 of the Sales Tax Act-1990, further read with Section 148 of the Income Tax Ordinance-2001, punishable under clauses (16) of Section 156 (1) of the Customs Act-1969 read with Section 56 and 58 of the Sales Tax Act-1990. Directorate of Intelligence & Investigation-Customs Karachi, in its contravention report.

tax refund appeal remanded back to Rto he Federal Tax Ombudsman (FTO) has remanded back the tax refund appeal filed by proprietor of M/s Allah Din Contractor against the Regional Tax Office (RTO) Sargodha. FTO Advisor Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that RTO had failed to release the refund of the last three years. He said that the RTO collected excessive tax from the owner of M/s Allah Din Contractor during the last three years. He approached the officer concerned many time for issuance of the refunds but the RTO Sargodha officials did not pay the refunds after the passage of reasonable time. –CB Report

he Directorate of Intelligence &Investigation Islamabad unearthed a case of tax evasion of Rs12.985million against the M/s Farm International, Model Town Lahore, and clearing agent M/s RIL Logistics Pvt Ltd Lahore by import of laser land level equipment in the name of necessary equipments for agriculture use by seven GDs cleared by the AFU Islamabad. According to details given by the Directorate of Intelligence and Investigation (I&I) Rawalpindi that M/s Farm International imported the laser land level equipment/instruments and got the same cleared through M/s RIL logistics Pvt Ltd Lahore by mis-declaring of descrip-

tion and misclassiQication of the PCT heading (8432-8090) and availed an inadmissible exemption of Customs Duty and Sales Tax through

Fifth and Sixth Schedule respectively. A seizure case No: 54/2017 dated 27.02.2017 was lodged against the importer and forwarded

to the Collector of Customs Adjudication Islamabad for proceeding. During an adjudication processing on a reference, the Customs House Karachi vide public notice found that the impounded goods are correctly classiQiable under the PCT Code 9032-8990 and the relevant part of the Qinding is reproduced as whether the subject goods are appropriately classiQiable under the HS Code 84.32 as claimed by the importer and assessed by the Collector or HS Code 90.15 as ascertained by the Directorate of I&I or any other relevant headings of Qirst schedule of the Customs Act-1969. The importers import the soil leveling instruments showing irrigation (tax exempted) instruments in their seven numbers of Good Declaration (GDs) as GD NO: 537,3874,4167, 4817, 6139 and 8914.

multan Rto collects Rs.1.26 billion on 30th march T

MULTAN

ImRAN ALI

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he Federal Board of Revenue (FBR) Regional Tax OfQice (RTO) has made revenue collection of Rs.1.26 billion on 30th March. OfQicial sources told Customs Today, that the Regional Tax OfQice has accelerated the revenue tax collection on Friday and according to sources it made huge collection on 30th March for accomplishment of their assigned revenue target of March. Tax authorities of Regional Tax OfQice made tax collection of Rs.410 million from M/s Bank AlHabib Limited under the head of advance income tax. M/s Multan Electric Power Company has deposited Rs.350 million under the head of withholding tax to Regional Tax OfQice Multan. M/s Fatima Fertilizer Company Limited

has deposited tax amount of Rs.400 million to tax authorities on second last day of March. M/s Shamim and Company has also deposited sales tax amount of Rs.50 million and federal excise duty

(FED) of Rs.20 million before the end of March. The Regional Tax OfQice has also collected Rs.100 million in wake of federal excise duty (FED) from beverage company M/s Gourmet on the same day.

M/s Layyah Sugar Mills and SM/s heikhu Sugar Mills has also deposited tax amount of Rs.50 million to Regional Tax OfQice under the head of federal excise duty (FED) on same day.

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tribunal reserves three judgments out of 21 appeals postponed LAHORE

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he Customs Appellate Tribunal (single & double) Bench heard 21 cases and adjourned all for diﬀerent dates without those cases whose verdicts were reserved. The verdicts of three appeals were reserved to pass the final order. The Division Bench-I, comprising Justice retired Malik Manzoor Hussain, Chairman and Saud Imran, Member Technical, heard nine cases including Eastern Freighter versus Collector Customs Lahore, Pak Telecom versus Collector Customs Lahore, Ice Age Industries versus Director Intelligence and Investigation Lahore, SAF PVC versus Collector Customs Lahore, Collector Customs Faisalabad versus Chenab Limited and Cascade Enterprises versus Collector Customs Lahore and Ohad Motors versus Col-

lector Customs Sambrial. The Single Bench-I, comprising Muhammad Shabbir Gujjar, Member Judicial, heard nine cases including R C House versus Collector Customs Lahore, Munawar Shah versus Collector Customs Sambrial, AR Chaudhary versus Collector Customs Lahore, Shehzad Textile versus Collector Customs Lahore, Capital SRL versus Collector Customs Lahore, Mirza Abid Baig versus Collector Customs Lahore and Ghulam Mustafa versus Collector Customs Faisalabad. Omer Arshed Hakeem, Member Judicial and Saud Imran, Member Technical heard 11 cases including H Ali Constructions versus Customs Lahore two appeals, Customs Faisalabad versus Safar Khan, Elite Enterprises versus Customs Faisalabad, Malik Farooq & others versus Customs Multan, Bismillah Purse versus Customs Lahore, Marine World versus Customs Lahore, Meena Brokly versus Customs Lahore and Sale Tech versus Customs Lahore.

National

court rejects after arrest bail petitions of two suspects in duty, taxes evasion case

govt mulls Rs67 billion tax relief for salaried class ISLAMABAD

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he federal government is mulling a massive tax relief worth Rs67 billion for salaried class in the upcoming budget. The Federal Board of Revenue has already proposed increase in the tax exemption threshold from the current Rs400,000 to Rs500,000 annual income. For the income group falling in the category of Rs500,001 to Rs800,000, the FBR has proposed a nominal tax rate of 1%. The current income tax rate for Rs400,001 to Rs750,000 is 10 per cent. The FBR has proposed to set only 2% income tax rate for the category falling in the range of Rs800,001 to Rs1.2 million as the existing rate for the class earning between Rs750,001 to Rs1.5 million is Rs35,000 plus 10% tax of the value exceeding Rs750,000. The tax body has also recommended that those whose annual income will be above Rs1.2 million should be charged at diﬀerent rates ranging from 15% and 20%. If it passes the hurdle, the wage-boosting measure will see a 90% cut in tax burden of the lowest income group and around 43% for the highest income group, said oﬃcials in the finance ministry.

KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi rejected after arrest bail petitions of suspects namely Muhammad Ishaq, owner of M/s Al-Saudia Enterprises and another Syed Mubashir Ali Qadri in a duty and taxes evasion case of Rs. 15.7 million. During the hearing, the suspects filed after arrest bail petitions before the court and their counsels submitted that they were innocent and were falsely implicated in this case. The counsel submitted that the bail was their fundamental right, therefor, the court might grant them bail till final judgment in this case. However, counsel for the Customs Department argued that the prosecution had concrete evidences against them and would produce before the court during the trial; therefore, the court might reject their bail petitions. After the arguments, the court rejected their after arrest bail petitions. Both suspects were already in jail. According to the prosecution, above mentioned suspect and other importers namely Muham-

Tuesday April 3, 2018

mad Ishaq son of Muhammad Naeem, owner of M/s Al-Sudia Enterprises, Syed Mubashir Ali Qadri son of Muhammad Ali, General Manager M/s Realex International in active connivance with their clearing agents have mid-declared C&F value of the imported goods and submitted fake and fabricated

import invoices to evade legitimate amount of government in the tune of Rs. 15,717,601. Case was registered against them for violation of under section 2 (s) 32A, and 79 of customs act, 1969 punishable under clauses 1, 8 (1) 14 A and 46 of section 156 (1) of the Customs Act, 1969 read with allied laws.

Dg Valuation revises customs values of artificial flowers, material

KARACHI

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he Directorate General of Customs Valuation has revised the customs values of artiQicial Qlowers and material through Valuation Ruling No: 1271/2018 under Section 25A of the Customs Act1969. The customs values of artiQicial Qlowers were notiQied vide Valuation Ruling No.749/2015 on June 15, 2015. Since the valuation ruling was more than two years old and it was brought to the notice of the Directorate General that a large number of consignments of the materials of artiQicial Qlowers comprising

leaves, stems, Qlowers etc were being imported and the same were being assessed at lower values. Since a reference was also received from MCC Appraisement (West) regarding valuation of the materials of artiQicial Qlowers, an exercise was initiated to determine the customs values of artiQicial Qlowers and materials thereof afresh under Section 25A of the Customs Act, 1969. Meetings with stakeholders were held on February 14, 2018 and February 28, 2018 in the Directorate General of Valuation, Custom House, and Karachi. The importers were requested to submit import invoices of the last three months, showing factual values as

well as the 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 values of supplies (excluding duty and taxes) to substantiate their contentions. The representatives of FPCC&I and Customs Qield formations attended the same. However, despite lapse of considerable time and two meeting notices, neither any importer appeared in the meeting nor any documents were submitted in this regard. Valua-

tion 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 the requisite 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 the sequential order this ofQice conducted market inquiries in terms of Sub-Section (7) of Section 25 of the Customs Act, 1969.

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World Customs

China’s economic growth boosts port throughput

BEIJING: China’s Belt and Road Initiative is designed to make Chinese and partner economies more competitive and narrow development gaps between landlocked countries and coastal regions. Along with supply-side reform within China, this year’s trade results demonstrate the beneﬁts China is reaping, despite “volatile” times internationally.

Tuesday April 3, 2018

African eU states focus anti-traﬃcking eﬀorts

$2m food import produce locally Netherlands

AMSTERDAM

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CAPE TOWN

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n ministerial-level talks, they agreed to “attack underlying causes of irregular migration,” according to a joint statement. The countries also vowed to strengthen national laws to prosecute trafQickers and improve coordination among police and judiciary in Qighting human smuggling. The one-day “conference on coordination of the struggle against trafQickers of migrants” took place against a backdrop of renewed concern in Europe over illicit migration, three years after a massive human inQlux led to a rise in xenophobia and far-right populism in several EU states. Niger, one of the large nations lying south of the Sahara in West Africa, has become one of the main routes for African migrants heading north to the Mediterranean coast in

Russian mega gas project with china going full-steam ahead he country imports nearly all the gas it needs to cover its domestic needs via a pipeline from Ukraine through Romania. Authorities in Ukraine have seized United States dollars 3.8 million worth of assets of Russian gas giant Gazprom in that country amid a legal wrangle, according to reports. The Company is shaping a major gas production center on the basis of the Kovyktinskoye field, which is unique in terms of its gas reserves (2.7 trillion cubic meters). In May 2014, Vladimir Putin and Xi Jinping singed a landmark $400 billion gas deal under which Gazprom will supply the China National Petroleum Corp (CNPC) 38 billion cubic meters (BCM) of natural gas every year for 30 years. The Russian company has been building the pipeline from the gas deposit in Siberia to Russia’s Far East. –CB Report

the hope of crossing to Europe. Collomb said because of a series of preventive measures taken by Niger, the number of Europe-bound migrants passing through the country had “dropped drastically” from 330,000 in 2016 to 70,000 last year. Two Africa-EU summits in 2017 put the focus on training police and paramil-

itary gendarmerie forces, help with conducting border checks and the creation of identity databases. Europe’s part in taking on irregular migration in Africa gained force with “migratory pacts” signed in 2015 in Valetta, capital of Malta, which built on previous accords to reach a global approach dating back to 2006.

china’s aim to remove cancer drug taxes may boost pfizer

hina Premier Li Keqiang’s aim to eliminate import taxes on cancer drugs and signiQicantly lower those for other medicines may provide a boon for global drug makers looking to the world’s second-biggest pharmaceutical market for growth. “For hot-selling consumer products in the market, including medicine, especially anti-cancer drugs urgently needed by the people, we will lower import tariffs to a relatively large ex-

tent, and work hard to reach zero tariff for anti-cancer drugs,” Li said Tuesday at a press conference at the close of the annual National People’s Congress in Beijing. The initiative on drug tariffs was part of a broader pledge by Li to further open the economy, including the manufacturing sector. The message comes as Chinese leaders prepare for further deterioration in trade relations with Donald Trump’s White House. –CB Report

etherlands Ambassador to Ghana, Mr. Ron striker who said this in Accra, observed that Ghana, mainly imports products like rice, sugar, frozen chicken and oil which could be easily produced in the country. Mr. Striker who was speaking at the launch of the Qirst Value Added Agriculture Expo in West Africa, slated for August 2 to 4 in Ghana, said boosting agriculture was essential to attaining the president’s vision of ‘Ghana beyond Aid’. He stated that agricultural investments would promote trade and economic growth as it employs almost half of the population and contributes to one-Qifth of the nation’s Gross Domestic Product (GAP). “The government of Ghana accords high priority to making agriculture a top sector in Ghana, initiatives like Planting for Foods and Jobs and the prominent position of agriculture in

the 2018 budget is proof,” he said. The Value Added Agriculture Expo, West Africa, which will be held in Ghana is expected to be West Africa’s largest exhibition promoting farm to fork solutions in value added agriculture and aquaculture. It is being organised by Reed Exhibition and the Ministry of Food and Agriculture (MoFA) with support from other organisations in Ghana. The event will cover the full value chain in agric business, showcasing input, livestock care solutions to farmers and agro processing best practices to increase the production ratio of outputs to inputs. It is expected to bring together all major players offering products and services in the agricultural industry. In addition to showcasing the latest solutions, the exhibition would also offer a live demonstration area and formal training workshops, where farmers are likely to learn new practical and business skills.

gDp growth surprises in South Africa

outh Africa’s real GDP growth rate accelerated at a 3.1% quarter-on-quarter SAAR during the fourth quarter of 2017, higher than the market consensus of 1.8% SAAR. This contributed to headline GDP growth of 1.3% in 2017 from 0.6% in 2016. Revised GDP numbers for the previous three quarters of 2017 produced by the South Africa Statistical Service, StatsSA, now also show that South Africa avoided a recession during 2017.Primary sector GDP increased by 4.9% SAAR during 2017 Q4: a double digit rebound in agricultural production mitigated

a downturn in output in the mining sector during the fourth quarter. Secondary sector economic activity rose by 3.1% SAAR: both the manufacturing and water and electricity sub-sectors recorded strong growth while the growth rate in the construction sector weakened reflecting dismal residential and nonresidential building activity. Tertiary sector GDP growth averaged 2.7% SAAR in 2017 Q4: sectors showing the largest contribution to the tertiary sector’s growth performance included wholesale and retail trade sales and the financial sector. –CB Report

thailand to draft plans to regulate and tax currencies

BANKOK

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hailand’s cabinet agreed to draft a law to oversee cryptocurrency trading, seeking to tax the largely unregulated market. Government spokesman Nathporn Chatusripitak said the Ministry of Finance also proposed the new

regulations to help prevent use of digital currencies in money laundering and fraud. He said details of the proposed regulations would be announced later in the month. In February, Thailand’s central bank issued a circular asking Qinancial institutions to not handle transactions involving cryptocurrencies.Meanwhile, Thai Deputy Prime Minister, Somkid Jatusripitak has

called for the necessary laws that will regulate the cryptocurrency market in Thailand to be passed within the month. In February 2018, BTCManager reported that the ICO regulations were imminent in Thailand. Both the country’s Securities and Exchange Commission (TSEC) as well as the Stock Exchange body have been collaborating to prepare a comprehensive le-

gal framework to regulate the ICO market in Thailand. An important part of the process of establishing regulatory measures to prevent fraud, according to the country’s SEC, has also been striving to stimulate growth in the market. According to the news outlet Thai Rath, a unique set of laws to regulate the cryptocurrency market in Thailand were being formulated.

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Shipping Activity at Port Qasim KARACHI: Shipping activity remained active at the port where three ships, Prosper, Soho Trader and Tiamat Gas scheduled to load/offload Containers, Talc Powder and LPG were allotted berths at Qasim International Container Terminal, Multi-purpose Terminal and Engro Vopak Terminal respectively on Sunday. Meanwhile two more ships, MSC Mars and Riva Wind also arrived at outer anchorage of Port Qasim during last 24 hours.A total of eight ships namely, Cap Mayor, MSC Desiree, Prosper, Soho Trader, Cherry Dream, SBI Antares, Nicolas III and Tiamat Gas are currently occupying PQA berths to load/offload Containers, Talc Powder, Steel coil, Coal, and LPG during last 24 hours.

thai February export growth seen slowing to 9.2pc hailand’s customs-cleared annual exports in February likely grew at a slower pace than in the previous month, a Reuters poll showed, as demand was lower over Lunar New Year holidays. The poll’s median forecast was for exports, a key driver of Thai growth, to grow 9.2 percent in February from a year ago. In January, exports jumped 17.6 percent from a year earlier, more than expected. The commerce ministry targets an export growth of 8 percent this year after a 9.9 percent increase in 2017 despite a strong baht, which is hovering above four-year highs. February imports likely increased 15.35 percent from a year earlier after jumping 24.3 percent in January, the poll showed. Thailand is expected to have recorded a trade surplus of $800 million in February, according to the poll, following a

Ports & Shipping

AD ports inks moU with china council to promote trade ABU DHABI

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ort developer and operator Abu Dhabi Ports has inked an agreement with the China Council for the Promotion of International Trade to explore new commercial opportunities between Chinese companies interested in investing in Khalifa Industrial Zone Abu Dhabi (KIZAD) and Khalifa Port Free Trade Zone (KPFTZ). The Memorandum of Understanding (MoU) was signed on the sidelines of the KIZAD Business Week, which was a series of business and networking events organised by KIZAD, a subsidiary of Abu Dhabi Ports. Following the signature, Abdulla Al Hameli, Executive Vice President – Corporate Support at Abu Dhabi Ports, commented: “Last year alone, with the support and guidance from the leadership of the UAE, Abu Dhabi Ports signed a 50-year agreement

with the Jiangsu province in China, bringing in AED 1.1 billion into the Khalifa Port Free Trade Zone in Abu Dhabi, the largest free zone in the region. Furthermore, COSCO Shipping, the world’s largest container operator, chose Khalifa Port as the

base for its operations in the region, driving volumes higher in the During the KIZAD Business Week, opportunities and challenges in free zones were discussed and how zones like KIZAD and Khalifa Port Free Trade Zone (KPFTZ) can address these issues.

Tuesday April 3, 2018

Seven ships take berth at port Qasim even ships, MSC Candice, MSC Mars, New Ark, Riva Wind, Madrid Trader, Lusail and Wawasan Jade scheduled to load\oﬄoad Containers, Wheat, project cargo, LNG and Chemicals were allotted berths at Qasim International Container Terminal, Grain & Fertilizer Terminal, Multi-purpose Terminal, Engro Elengy Terminal and Engro Vopak Terminal respectively on Monday. Meanwhile seven more ships carrying, Containers, steel coil, Bitumen, Coal, Palm oil and Diesel oil also arrived at outer anchorage of Port Qasim during last 24 hours. A total of ten ships namely, New Ark, MSC Candice, MSC Mars, Riva Wind Soho Trader, Madrid Trader, SBI Antares, Nicolas-III, Lusail and Wawasan Jade are currently occupying PQA berths to load/oﬄoad Containers, Wheat, Talc Powder, project Cargo, Coal, LNG and Chemicals during last 24 hours. Cargo throughput during last 24 hours stood at 125,568 tonnes, comprising 93,629 tonnes import cargo and 31,939 tonnes export. –CB Report

kpt shipping intelligence report KARACHI

deficit of $119 million in January. Meanwhile, The Ministry of Commerce says the global economic recovery contributed to February’s export growth of 10.3% while maintaining this year’s export growth target at 8%.Thai exports in the first two months of 2018 rose to a 7-year high of 13.8% growth, with a combined value of 40.466 billion dollars, while imports were valued at 39.778 billion dollars, resulting in a trade surplus of 688 million dollars. The US, the European Union, and Asian countries remain Thailand’s major trade partners, according to Pimchanok. Due to these positive signs and the rising price of crude oil on the global market. –CB Report

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he Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours. ALONG SIDE (Bulk Oil Pier) OP-I Quetta D. Crude Oil PNSC 26/03/18 OP-II Nissoos Christiana D. Mogas GAC 23/03/18 OP-II Bochem Ghent L. Ethanol East Wind 25/03/18 ALONG SIDE (East Wharves): 1/2 Fairchem katana L. Ethanol East Wind 25/03/18 14/15 Pistis L. Wheat Northstar 25/03/18 15/16 Vinalines Brave L. Wheat WMA Shipcare 23/03/18 ALONG SIDE(P.I.C.T): 6/7 Sima Genesis D. L. Cnt. Green Pak 24/03/18 8/9 Wide India D. L. Cnt. U.M.A 26/03/18 ALONG SIDE(PDWCP): SAPT-2 Tolten D. L. Cnt. United Arab 22/03/18 SAPT-3 CMA CGM Tosca D. L. Cnt. CMA CGM Pak.26/03/18

SAPT-4 Wiking D. L. Cnt. U.M.A 26/03/18 Along Side(West Wharves) 25 Magnate L. Wheat OC-Serivces 25/03/18 ALONG SIDE (K.I.C.T): 28/29 Kota Lagu D. L. Cnt. P-Delta 25/03/18 29/30 Prosper D. L. Cnt. X-Press Feeder26/03/18 EXPECTED ARRIVALS: CONTAINER (GEARLESS)

Kota Kasturi P-Delta 28/03/18 Not Sched 300 Cnt. 300 Cnt. Kota Layar COSCO 28/03/18 Not Sched 600 Cnt. 600 Cnt. MOL Explorer MOL Pak 28/03/18 Not Sched 700 Cnt. 1000 Cnt. Zante COSCO 30/03/18 Not Sched 600 Cnt. 600 Cnt. COSCO Durban COSCO 01/04/18 Not Sched 600 Cnt. 600 Cnt. MS Tiger

COSCO 02/04/18 Not Sched 600 Cnt. 600 Cnt. GENERAL CARGO: Kiran Australia Sea Hawks 27/03/18 Not Sched 32,201 GC Nil Lisanna Gen.Maritime 27/03/18 Not Sched 598 G.C Nil Damas COSCO 28/03/18 Not Sched Nil 163 G.C Hermann-S GAC 30/03/18 Not Sched 30,974 Steel Nil Kobe Star GAC 30/03/18 Not Sched 28,716 G.C Nil Royal Jade GAC 30/03/18 Not Sched 14,349 Steel Nil COAL: Alexandriet OC.Services 27/03/18 Not Sched 54,932 Nil Bulk Neptune OC.Services 27/03/18 Not Sched 53,523 Nil OIL TANKER: Askholmen Alpine 27/03/18 Not Sched 12,000 Nil N Mars Alpien 27/03/18 Not Sched 60,000 Mogas Nil Stavanger Bliss GAC 26/03/18 Not Sched 69,031 Crude Oil Nil SHIPS OFF PORT: Vessel Name Type Agent expected Berth No. Arrival Date Arrival Time Remarks Panvision Bulk Ships.

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FIA arrests man for violating copyrights ordinance LAHORE: Federal Investigation Agency (FIA) Corporate Crime Circle Lahore has arrested a man for violating copyright ordinance and seized huge quantity of fake WD-40 its packing empty tins, caps and other related items. According to FIA spokesman, the team conducted a raid at Ali Enterprises Brandrath road and its factory at Bund road here. It was found that WD-40 Anti Rust Aerosol spray was being sold at shop and manufactured in factory in violation of Copyright of complainant company without any permission or licence from original owner.

Tuesday April 3, 2018

Business

Dr Aisha for consensus to form economic plan LAHORE

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unjab Finance Minister Dr Aisha Ghaus Pasha has said that the provincial government strongly believed in developing a consensus over the economic agenda, adding that all stakeholders – including private sector and the academia – should come up with ideas to enable the economic policy for exports and manufacturers. Speaking at the symposium titled “State of the Economy and Future Priorities” held by Friedrich-EbertStiftung (FES) Pakistan and Sustainable Development Policy Institute (SDPI) on Wednesday, she said the ap-

kinnow export increased by 30% SARGODHA

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proach of the government was to build an economic policy for whoever came to power which must respond to the real needs and aspirations of all the stakeholders. The Punjab Qinance minister added that the government be-

mentation of policies…high cost of energy and non-enabling tax mechanisms have been major constraints for investors and manufacturers and with the help of consultation with stakeholders, our government is seriously working on removing all these impediments and the forthcoming provincial budget would be reQlective of this approach,” she said. She said that the investment that took place in Punjab was a result of the growth rate policy whereas, in Khyber Pakhtunkhwa, it was based on the development funds that province received for its particular situation. The symposium was clubbed with the launch of two books related to Pakistan’s national economy including “Growth and Inequality in Pakistan” by eminent economist Dr HaQiz Pasha and “Pakistan’s Agenda for Economic Reforms” by Dr Vaqar Ahmed.

ISLAMABAD

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he production of motor bikes in the country during first eight months of current fiscal year increased by 17.32 per cent as compared to the production during July-February 2016-17. The motor bikes production rose to 1,257,095 units during July-February 2017-18 from that of 1,071,454 units in same period of previous year. On yearly basis, the motor bike production in the country also rose to 145,376 units in February 2018 from 135,507 units in same month of last year, posting an increase of 7.2 per cent. According to details issued by Pakistan Automotive Manufacturing Association (PAMA), production of Honda bikes surged by 16.5 per cent as it jumped to 729,382 units i Jul-Feb (2017-18) from 626,040 units in same period of previous year. Similarly production of Suzuki motor bikes also registered an increase of 11.05 per cent as it was recorded at 14,455 units against the production of 13,016 units in same period of last year, however DYL motorcycles’ production fell by 23.8 per cent to 4,034 units during the period under review against the production of 5,294 units in same same period of previous year.

kp NAB arrests ex-oﬃcial of Nestle for Rs145 million fraud

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irector Citrus Research Institute Sargodha (CRIS) Muhammad Nawaz Maiken on Wednesday said thirty percent increase in kinnow export was recorded with exporting 375,000 ton kinnow during the current season. Talking to this scribe, he said that Bhalwal was top with regard to exporting kinnow as it exported above 200,000 metric ton. The growers and exporters have received best rates, he said.

lieved in an economic policy that is export-oriented, which is led by the private sector and in alliance with the sustainable development goals (SDGs). “We are focusing on developing mechanisms for proper and better imple-

motor bikes’ production up 17.32 pc in 8 months

PESHAWAR

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he National Accountability Bureau (NAB) Khyber Pakhtunkhwa has arrested a sales manager of a company for alleged fraud. A press release said Jamal Khan Khattak, former Area Sales Manager, Peshawar, Nestle Pakistan Ltd, was allegedly involved in cheating public at large. He was accused of fraudulently collecting Rs145 million from innocent people in the name of fake investments

in the company. The accused in connivance with other co-accused persons lured innocent people to give him their hard earned money for fake investments including vender services in Nestle’ Pakistan Limited. The affectees deposited the money

in the account of the accused person through bank drafts/cheques as well as paid them through different means. The accused initially paid abnormally high proQits to investors. Later, he not only stopped paying proQits but also disappeared from the scene without returning the principal amount to the affectees. The affectees approached company and found that the business of the accused had no afQiliation with the company. It merits a mention here that NAB KP has Qiled reference against the accused person in accountability courts.

Seafood exports reach $264.18m in eight months ISLAMABAD

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he exports of Qish and Qish preparations from the country have witnessed 10.18 per cent increase during Qirst eight months of 2017-18, fetching US $ 264.18 million precious foreign exchange during the period. During the period July-February 2017-18, the country exported about 108,262 metric tons of Qish and

Qish preparations as compared to exports of 89,032 metric tons, valuing of US$ 239 million during same period last year, a data of Pakistan Bureau of Statistics showed. Overall food group exports from the country during the period under review witnessed growth of 21 per cent as food commodities worth US$2.842 billion were exported during July-February (201718) against exports of US$2.334 billion during July-February (2016-17). Meanwhile, when contacted, ofQicial

sources at Commerce Division on Wednesday said at present, seafood is being exported to European Union member states while now it is gaining popularity in China, not only because of its low prices but also because of support from government policies. Earlier, EU had de-listed all the companies exporting Qish from Pakistan in 2007. It was primarily done on account of failure to meet EU’s Sanitary and Phytosanitary (SPS) measures. As a result of the efforts of the present

government i.e, Ministry of Commerce and Marine Fisheries Department (MFD), EU lifted ban in June 2013. Two exporting establishments are now being allowed to export to EU member states. The matter was taken up by Pakistani side during the 8th Session of Pakistan-EU Sub-Group on Trade meeting held on October 9, 2017 in Brussels. The EU side has temporarily allowed two Qisheries establishments to start exporting to EU after assurances given by Ministry of

National Food Security & Research to European Commission to comply with EU’s SPS measures. However, the EU side has linked possibility of relisting the remaining establishments for exports to EU with the on-ground visit and authentication of its SPS inspectors. Pakistani seafood is also gaining popularity in Chinese market as several seafood distributors said that Pakistani seafood, compared with seafood imported from other sources, is more cost-effective.

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UAE to facilitate Pakistani business community: envoy SIALKOT: Ambassador of the United Arab Emirate (UAE) to Pakistan Hamad Obaid Salem Al Zaabi discussed diﬀerent prospects to ﬁnd out ways and means for enhancing bilateral trade between his country and Pakistan in a meeting with President Sialkot Chamber of Commerce and Industry Zahid Latif Malik He pledged extending full cooperation for organising single country exhibitions between both countries. He also promised to facilitate the businessmen of Pakistan in acquiring long-term business visas. He appreciated the law and order situation in the country and said that Pakistan was a safe country. The ambassador expressed his commitment for working with the Pakistani government and media to project a soft image of Pakistan around the globe.

kccI criticizes govt’s move to limit Sindh Food Authority to karachi only

Tuesday April 3, 2018

Chambers

IccI calls for cut in high tax rates in next budget to improve tax revenue

LAHORE

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resident of the Karachi Chamber of Commerce & Industry (KCCI) Muffasar Atta Malik, while criticizing government’s move to limit the operations of Sindh Food Authority (SFA) to Karachi only, stated that this was likely to create a lot of problems for the business and industrial community as it seems that the Authority has been established in haste. Referring to a press conference by Food & Parliamentary Aﬀairs Minister Nisar Ahmed Khuhro in which formal announcement was made about the establishment of Sindh Food Authority, President KCCI stated that SFA’s Board of Governors, being headed by Provincial Food Minister, mostly comprises of

dozens of bureaucrats including Secretaries and Deputy Commissioners along with three nominated members of Sindh Assembly and a representative of Chamber of Commerce and Industry. “SFA Board should be made more balanced by enhancing the representation of business and industrial community, which would surely make it a vibrant regulatory authority”, he opined. President KCCI categorically stated that the Karachi Chamber was not against the establishment of SFA as safe, hygienic and healthy food, which is the basic right of every citizen, has to be supplied to the masses at any cost but it was highly unfair to limit the Authority’s operations to Karachi only. “From the very beginning, SFA should have covered every nook and corner of Sindh because the food health and hygiene conditions in other cities, towns and villages across Sindh are way too miserable as compared to Karachi city”, he added.

ISLAMABAD

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heikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry (ICCI) said that the high tax rates in Pakistan were major cause of promoting tax evasion in the country and emphasized that in the forthcoming federal budget, government should cut tax rates that would help in expanding tax base, improving tax-toGDP ratio and enhancing tax revenue of the country. He was talking to MPA Raja Hanif Advocate during his visit to Chamber House. Zubair A. Malik Chairman Founder Group, Khalid Chaudhry, Dildar Abbasi, Iftikhar Sethi, Ashfaq Chatha, Muhammad Faheem Khan, Sai fur Rehman Khan, Nisar Langa and others were also present at the occasion. Sheikh Amir Waheed said that government had imposed 3 percent super tax on income of 500 million and above as well as 4 percent super tax on income of banking companies in 2015 for rehabilitation of IDPs that was extended in 2016 and 2017. He

stressed that in the coming budget, government should abolish super tax as there was no further justiQication for it. He said 17 percent sales tax in Pakistan was almost highest in the region that has put extra burden on the common man and enhanced the cost of doing business in the country. He said in the next budget, government should reduce GST to single digit level that would provide signiQicant relief to the common man, reduce cost of doing business and give boost to business activities. He said the prevailing

withholding tax regime has made taxpayers of private sector as withholding agents for FBR due to which business community has to spend sufQicient time on collection of WHT for the tax department. He urged that in the next budget, government should streamline WHT regime and assign the responsibility of collecting WHT to FBR ofQicials so that business community could fully focus on promoting business activities. Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI

Residents of Rawalpindi hails foodpanda RAWALPINDI

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he residents of Rawalpindi welcome Foodpanda in Rawalpindi. With the ease of ordering food online, Foodpanda has not only revolutionized the restaurant industry but also scaled up the growth of ecommerce altogether building proud Pakistan. These views were expressed by commissioner Rawalpindi who was the chief guest on the inauguration of Foodpanda service in Rawalpindi at a local hotel. He said Rawalpindi district administration will provide maximum assistance and cooperation in registration of business entities and other facilities. E-commerce is fast growing industry in Pakistan and we are hopeful that more people will get beneQit from such services.

RCCI chief Zahid Latif Khan who was guest of honor on this occasion said that said e-commerce is the future mode of conducting business, and will provide an opportunity to small and medium enterprises (SMEs) to directly supply their products to the end-consumers in any part of the world. Pakistan is the sixth most populous country in the world with more than 180 million people. 140 million people have mobile connections, 40

million out of which have smart phones with 3G and 4G access. Mobile internet penetration is increasing 100%, year on year, he added. More business activities in the country will automatically attract foreign investment in the country. CEO Foodpanda said we are very excited to expand our services to Rawalpindi and deliver good food right to our customers doorstep especially with our enhanced app and website.

said that the average rate of tax on corporate income in the region was less than 23 percent while in Pakistan due to multiplicity of taxes including 2 percent workers’ welfare fund and 5 percent workers’ participation fund, average tax rate on corporate income went up to 38 percent, which was not justiQied. They said that in the next budget, government should bring down average tax rate on corporate income that would encourage new investment and strengthen corporate sector in the country.

LeSco to establish “Help Desk” at LccI n demand of the Lahore Chamber of Commerce & Industry, Chief Executive of Lahore Electric Supply Company (LESCO) Mujahid Pervaiz Chattah has announced to establish “LESCO Help Desk” at the LCCI. The announced was made during a meeting at the Lahore Chamber of Commerce & Industry, which was also addressed by the LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid, Vice President Zeshan Khalil and Executive Committee Members. LESCO Chief also agreed with the LCCI President that mindset of LESCO staﬀ should be changed that would resolve various problems automatically. “LESCO really needs change in mindset and I am doing a lot in this regard along with my dedicated team”, he added. –CB Report

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Sargodha Field Investigation takes NDP Hino truck into possession FAISALABAD: The Field Investigation Unit (FIU) Sargodha of the Customs Intelligence and Investigation has impounded a non-duty-paid Hino truck with tampered registration No: GTS-17-696, Model 1997, priced at Rs10million involving customs duty and taxes of Rs6.7million. Sources told Customs Today that Deputy Director Rana Irfan Shouqat received a tip-oﬀ that some non-customs-paid vehicles are plying on the roads. He constituted a team comprising Superintendent Muhammad Tahir, Intelligence Oﬃcers Mansoor Nasir, Saad Iqbal,Sepoy Ashraf Qureshi, Khalil Ahmed and Asad Iqbal.

Tuesday, April 3, 2018

CUSTOMS BULLETIN

Quetta Intelligence thwarts smuggling attempt of mobiles & accessories QUETTA wAQAR AHmeD ANSARI www.customsbulletin.com

he Directorate of Customs Intelligence and Investigation Quetta frustrated a smuggling bid of a non-duty-paid mobile phones and mobile accessories priced at Rs4.35million. Sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Chaudhary received a tip-off that some smugglers are trying to smuggle non-duty-paid mobile phones and mobile accessories from Quetta. He constituted a raiding team under the supervision of Superintendent Raheel Warsi and others. The team enhanced the surveillance on Quetta Kuchlak Road and started the search of vehicles. The team intercepted a truck bearing registration No: QLM-2746 which was going from Quetta to Karachi loaded with ofQice chairs. During the checking, the customs team recovered 150 latest model smart fones and different mobile accessories valued at Rs4.35million. The customs team impounded all the mobile fones and a truck used in the smuggling and arrested two smugglers including a driver. Sources said that an F I R will be lodged after 48 hours.

NAB to probe Rs500m embezzlement in 114 cases against pakistan post ISLAMABAD

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he National Accountability Bureau (NAB) and Federal Investigation Authority (FIA) are probing embezzlement of Rs500 million in 114 cases against Pakistan Postal Services ofQices across the country. Similarly, there are about 116 cases of theft and robbery, which have been reported during the last two years in the post

ofQices across the country that resulted in the loss of Rs209 million with only Rs62 million recovered. The FIA is investigating 88 cases of embezzlement of Rs270million carried out in eight ofQices of Post Master General (PMG) while the NAB is probing 26 cases of losses amounting to Rs227 million in Qive PMGs. The details of these cases were shared in the National Assembly Standing Committee where lawmakers were told that recoveries were being made in the embezzlement cases with slow progress. According to documents presented before the committee, Published by M S Raza Oﬀ# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by (Ibne Hassan Oﬀset Printing Press, Shop No. 33 to 36 , Hockey Stadium, Karachi).

the FIA is investigating 88 cases of which the highest number of cases have been registered in Lahore involving an embezzlement of Rs57million. The OfQice of Multan comes second where 29 cases of embezzlement of Rs12million are being probed. The postal services ofQicials said that so far Rs12 million have been recovered in cases investigated by NAB while Rs29 million have been recovered by FIA. Islamabad Police ofQicial also shared details of the four cases of ‘dacoity’ where Rs4.6 million is involved and all cases are under investigation with no progress.