April 4 layout 1

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Karachi, Tue April 4, 2017

ISLAMABAD

M FAIZAN

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hief Customs FBR Ikhlaq Ahmad Khattak has said that Pakistan Custom is working in challenging and difRicult environment as 18 Customs ofRicials have been martyred and more than

11 others injured for the last one year.

During an exclusive interview with Customs Today, Ikhlaq Ahmad Khattak said that Federal Board of Revenue has decided to move a summery through the Ministry of Finance that Pakistan Customs should be declared as a law enforcement agency with full authority like the other law and enforcement agencies. “Beside this, we are trying to improve the organizational structure of the Customs Department,” he added. Khattak said, “We

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are expecting that the government will convert Pakistan Customs into a law and enforcement agency before the announcement of federal budget. “It is very important to improve the performance of customs,” he said. He said that the required work in this regard has been completed and a summery would be sent in a couple of days. Pakistan Customs has yet to be declared a law enforcement agency while despite the fact we perform all functions of a law and enforcement agency.

Torkham border handles over 60pc Pak exports to Afghanistan, Central Asia

MoC takes numerous measures to enhance exports to Afghanistan

ECC approves proposal of 300 MW power plant in Gwadar

FTO adjourns hearing of case filed

by SAM Trading

Customs detains non-duty paid Hino truck worth Rs 7m during road checking

Torkham border handles more than 60% of Pakistan’s exports to Afghanistan | See pAge 02 |

In the wake of declining exports to Afghanistan,theMinistryofCommerceMoC | See pAge 03 |

ECC approved the proposal put forth by the Ministry ofWP for authorizing the PPIB | See pAge 04 |

The FTO has heard a case filed by proprietor of M/s SAMTrading against RTO Office | See pAge 14 |

DGCustomsI&IIslamabadhasdetaineda non-dutypaidusedHinotruckModel2002 | See pAge 16 |

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FIR lodged against M.R Steel Furnace Tuesday, April 4, 2017

National

KARACHI: Model Customs Collectorate Port Qasim has lodged an FIR nominating/s M.R Steel Furnace for evading government revenue through mis-declaring description and classification of the imported goods.

M/s M.R Steel Furnace imported a consignment of 12 containers said to contain iron and steel remeltable shredded scrap under PCT 7304.4100 and paid upfront amount of duty and taxes.

Collector Port Qasim Saeed Akram passed this information regarding attempt of misdeclaration.

torkham border handles over 60pc pak exports to Afghanistan, central Asia

PESHAWAR

ISLAMABAD

IrFAN BAhADur

tArIQ DerYA

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he Directorate of Intelligence & Investigation (Customs), FBR Peshawar, under the Rule 8 & 9 of the Public Procurement Rules 2004, announced a plan FY2016-2017 for possession of several items. The Model Customs Collectorate Peshawar on Wednesday said that I & I Customs Peshawar issued a notice in February last month for the possession of necessities for which contracts will be awarded in March this month and May 2017. An estimated cost of Rs370000 will be required to implement the tender by June 2017 for possession of stationery whereas through PCPPI with estimated cost of Rs200000 the award of contract was given in January to provide the printing and publication requirements till June 2017. About Rs200000 estimated cost for uniform and protective clothing will be allotted in two schemes by quotation for which notice was issued in January 2017 and contract was awarded the same day while another notice will be issued in May while contract will also awarded the same month.

Through open tender to meet the requirement of computer stationery, Rs100000 was estimated to be spent for which notice was issued in February while contract will be awarded in March.

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orkham border handles more than 60% of Pakistan’s exports to Afghanistan and Central Asian States besides facilitating transboundary movement of Afghan transit cargo. It gained international importance during the post9/11 era as logistic supply line for US-led allied forces in Afghanistan.

The performance of Customs Station Torkham in terms of antismuggling drive has also been outstanding during the financial year of last eight and a half months (July 2016 to March 15, 2017). Torkham made seizures of various smuggled goods worth Rs229.25million during above said period.

These important views were expressed by Deputy Collector Torkham Fazle Shakoor while talking to Customs Today during an exclusive interview at his ofRice.

He joined Pakistan Customs in 2008 and his first posting was at the MCC Quetta. He was also posted at Karachi and now he is posted at Torkham. Fazel Shakoor got a Masters degree in History from Quaid-e-Azam Univresty. He belongs to Dir (KP). He stated that historically Torkham has been a major trade route and border crossing-point for a long time. It was playing a significant role in

customs announces plan FY2016-17 for possession of several items

promoting regional trade and regional connectivity. Customs Station was first established in 1934 as land border station to promote bilateral trade between Afghanistan and the then British India. Deputy Collector said Torkham was manned by a Border Examiner. It was a small border station facilitating clearing of export goods of food items and salt to Afghanistan and import of fresh fruits from Afghanistan. The post

of Border Examiner was elevated to Superintendent in 1951. It was notified as Land Customs station by the central government in 1954 followed by another notification declaring Torkham as Customs Station in 1983. He said that as the bilateral trade increased coupled with transit trade agreement signed in 1965 between the two neighbouring countries, the status of the station was elevated to the post of Assistant Collector in 1977.

Answering a query, he said despite multi-faceted constraints with particular reference to complex security situation, the performance of Customs Station Torkham in terms of anti-smuggling drive has also been outstanding during the last eight months. During the last eight and a half months, Torkham impounded gold and gold jewelry worth Rs71.45million whereas anti-smuggling staff seized foreign currency worth Rs77.03million.

ANF seized narcotics worth over $3 billion last year A

KARACHI

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nti-Narcotics Force’s (ANF) Sindh Joint Director Col Asim has said that the force seized 215 metric tons of narcotics worth over $3 billion last year.

He said this while addressing a seminar on Prevention of Drug Abuse, organised by the Karachi University’s Department of Social Work. “ANF has been declared one

of the best anti-narcotics agencies of the world by the United Nations’ ofRice of Drugs Control,” he added.

According to Colonel Asim, the world’s drug economy is worth $435 billion and around $225 billion is needed for drug treatment of patients globally. He said that Karachi and Sukkur are the main hubs of narcotics in Sindh, with the most commonly recovered drug in Pakistan being hashish, followed by heroin, opium and cocaine.

“Lyari, Baldia, Golimar, Hub

Chowki, New Karachi, Orangi Town and Saddar are the areas where

most of the drug addicts reside in,” said Col Asim, adding that 59% of

the drug addicts in Pakistan belong to the 20-29 age group. Only 1% of drug addicts are graduates and 57% of them are unemployed while 47% take drugs due to peer pressure, he added. Col Asim shared that 685 deaths per day are occurring daily in the world due to drug usage or overdose, which is higher than the number of deaths resulting from terrorism. Global drug trade occurring from Afghanistan makes its way from Pakistan, which is why we are the most affected, he said.

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Sialkot leather exporters urged to use advanced techniques SIALKOT: The international experts of the advanced leather techniques have urged the Sialkot based tanners, leather goods manufacturers and exporters to focus on the use of advanced techniques in leather goods manufacturing besides assuring the early compliance on the international quality and atmosphere protection standards to meet the global trade challenges and to flourish in the European Union (EU) markets as well.

They stated this while addressing the participants of a day-long largely attended seminar on “Leather Working Group-LWG” mutual organised by Sialkot Tannery Association and Sialkot Chamber of Commerce and Industry (SCCI) at SCCI Auditorium here on Thursday.

Tuesday April 4, 2017

National

Shc issues notices on petition filed

by Sun Metal Industries

Moc takes numerous measures to enhance exports to Afghanistan

KARACHI

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indh High Court (SHC) has issued notices to the Secretary Industries and Production and Engineering Development Board for April 04 while hearing a constitution petition filed by Sun Metal Industries. A division bench comprising Justice Munib Akhtar and Justice Yousuf Ali Sayeed. The petitioner submitted that it imports aluminum ignots which was supplied to the manufacturers of auto parts/components. The petitioner said that SRO 655 (1) 2006 dated 22-6-2006 provides exemption from custom duty subject to certain conditions. The petitioner fulfilled all conditions and sought a certificate which was issued but was later recalled without asinging any reason.

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NAB transfers three director generals ISLAMABAD

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he National Accountability Bureau (NAB) has transferred three of its director generals and posted them to the vacant positions.

The bureau transferred these officers on the Supreme Court’s short order regarding removal of four NAB director-generals. According to the notification, Khyber Paktunkhawa DG (Operations) Major (R) Shahzad Saleem has been transferred and posted as DG (Operations) in Lahore, Multan DG Brig (R) Farooq Naser Awan has been transferred and posted as the KP DG, while Abdul Hafeez Director Multan will look after the work of DG Multan until further orders. However, the NAB has not yet issued notification for formal removal of the four DGs from their services because it has not received the Supreme Court short order.

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ISLAMABAD

M ArShAD

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n the wake of declining exports to Afghanistan, the Ministry of Commerce (MoC) has taken a number of measures to make this deRiciency. Pakistan’s exports to Afghanistan have come down from $1.962 billion in 2014-15 to $1.437 billion in 2015-16.

A well placed source at MoC told Customs Today that Pakistan’s exports to Afghanistan witnessed a decline due to some certain reasons namely, the decrease in aggregate demand as a result of withdrawal of NATO forces in Afghanistan, deteriorating political relations, worsening law and order situation and frequent closure of Pak-Afghan border.

Furthermore, the source added that access of Afghanistan to Bandar Abbas in Iran had also increased over time and Afghan traders were increasingly using that port instead of Karachi due to escalating cost, poor facilities and difRiculties at Karachi port. Therefore, the source said that MoC had taken a number of measures to enhance of transit and border trade with Afghanistan.

With a view to increasing exports to Afghanistan, Pakistan offered a bilateral Preferential Trade Agreement (PTA). The Afghan side has not yet responded to the draft PTA text provided by Pakistan and due to the current political climate trade with Afghanistan has been hindered, re-

sulting in the decline.

Moreover, the source said that MoC had acceded to the TIR Convention, 1975 which was being operationalized. TIR Convention will greatly facilitate Pakistan’s trade with Afghanistan, Iran Central Asian States and beyond. Operationalization of the Convention will allow Pakistani goods to travel in Customs secure vehicles or containers and throughout the journey, duties and taxes would be covered by an inter-

the source said that Moc had acceded to the tIr convention, 1975 which was being operationalized. tIr convention will greatly facilitate pakistan’s trade with Afghanistan, Iran central Asian States

Shc directs AtIr to decide appeal of SSgc Lpg Ltd

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KARACHI

MB rANA

www.customsbulletin.com he Sindh High Court (SHC) directed the Appellate Tribunal Inland Revenue Appeals to decide the appeal of the petitioner within two months from the date of this order providing opportunity of being heard on a constitutional petition Riled by M/s SSGC LPG Private Limited seeking exemption certiRicate from withholding of tax on the supply of LPG.

A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan, was hearing the petition.

After the hearing, court disposed of the petition with direction that “direction should be given to the petitioner to submit response to the show cause notice issued by the respondents which shall be considered in accordance with law. However assessment proceedings will not be Rinalized till decisions of the appeal of the petitioner by the appellate tribunal IR for

the tax year 2013 involving similar controversy. The petitioner is directed to approach the appellate tribunal IR with the request for urgent hearing of the matters whereas it is expected that the appeals of the petitioner will be considered within the period of two months from the date of this order providing opportunity of being beard to the petitioner”. Earlier, counsel for the petitioner stated in a constitutional petition that on the basis on SRO (1)/1991, ofRicials of the tax authorities issued exemption certiRicates.

nationally valid guarantee. Moreover, the source highlighted that after the operationalization of TIR Convention, customs control measures taken in the country of departure would be accepted by all countries of transit and destination. “It was agreed that in accordance with Article 50 of APTTA, the provisions of the present agreement shall be revised and amended appropriately with a view to further facilitating transit trade” the source maintained.

pakistan’s liquid foreign reserves position he total liquid foreign reserves held by the country stood at $21,795.9 million on March 2017.

A statement of the State Bank of Pakistan (SBP) said that the break-up of the foreign reserves position is as under: Foreign reserves held by the SBP $16,730.3 million, Net foreign reserves held by commercial banks $5,065.6 million, Total liquid foreign reserves: $ 21,795.9 million.

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Green Line Bus project to be completed by end of current year KARACHI: Governor Sindh, Muhammad Zubair has said that the Green Line Bus project in Karachi, mainly funded by federal government, is fast on its way to completion and would be open to public by end of the current year. The Governor who visited the Green Line Bus project’s construction site at Board Office intersection and given an elaborate briefing by the concerned officials, later talking to media persons said the scheme will provide Karachiites with an updated mode transportation. “It will definitely facilitate the local commuters exposed to immense traffic related problems due to lack of planning in the ever expanding metropolis of the country,” he said.

Tuesday April 4, 2017

Business

ecc approves 300Mw power plant in gwadar ISLAMABAD

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conomic Coordination Committee of the Cabinet (ECC) approved the proposal put forth by the Ministry of Water and Power (WP) for authorizing the PPIB to proceed for award of the project for establishment of 300 MW power plant at Gawadar to China Communication Construction Company under Rule 5 of the Public Procurement Rules 2004. Finance Minister Senator Mohammad Ishaq Dar here chaired the meeting of the ECC. Agreement on Pak-China Economic Corridor Energy Project Cooperation in Nov 2014, among other

gas crisis will not end even by 2030: ogra LAHORE

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provisions also provided for establishment of this coal based project to be developed at Gawadar, Balochistan. The Chinese side subsequently nominated China Communication Construction Company (CCCC) to in-

Secp launches new user registration system under e-system

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il and Gas Regulatory Authority (Ogra) has forecasted that gas crisis will not end even in next 13 years whereas shortfall would soar to 6.71 billion cubic feet in same period. By 2030, local consumption of gas would stand at 5.28 billion cubic feet daily whereas local production would stand at just 1.40 billion cubic feet. According to a report, LNG will meet 1800 MMFCD, TAPI will meet 1325 MMFCD and IP will meet 750MMFCD of gas needs.

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vest in the project to which the Pakistan side had expressed agreement.

The ECC, it may be mentioned had set up a committee in its last meeting under the chairmanship of Minister for Law to have a detailed

review of the proposal put forth by the Ministry of Water and Power.

The said committee put forth its report during the meeting and endorsed the recommendation of the Ministry. The Committee was informed that Environmental Impact Assessment will be carried out and assessed by the Provincial authorities as per the law in vogue.

Meanwhile, Finance Minister Senator Ishaq Dar has said that Pakistan is fully committed to further enhancing and strengthening relations with Italy in existing and new areas including defence, economic cooperation, trade and investment.

He made these remarks during a meeting with visiting Italian Deputy Minister for Foreign Affairs and International Cooperation Benedetto Della Vedova.

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ISLAMABAD

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ecurities and Exchange Commission of Pakistan (SECP) has launched a new User Registration System to reduce incorporation cost under EServices. The new system will reduce the incorporation cost from Rs. 1,500 per user to Rs. 100 per user besides reducing the turnaround time from days to minutes for registration of users of eServices, a press re-

lease said.

The new simplified User Registration System under eServices replaced the cumbersome process of obtaining digital signatures from NIFT. The user registration under eServices now can be obtained simply by employing user login, password and PIN code.

The user registration under eServices are required for incorporation of new company through online and for signing of the documents to be submitted to the Commission and the regis-

trar concerned.

This will also be a one-time registration without any renewal and associated cost as is presently required on an annual basis. This facility will be a great incentive for potential pomoters of companies, and is likely to further propel corporate growth.

The salient reform measures which are being taken to further ease doing business environment in the country include revamping of eServices and integration of corporate registry with the provincial authorities, etc.

Mega property show begins in Dubai DUBAI

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he Middle East’s biggest property sales platform for local and international real estate markets, the 13th edition of the International Property Show, was inaugurated here on Sunday by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, at the Dubai World Trade Center. This innovative event is held annually in Dubai for international and local companies involved in sales and promotion of real estate to individual and institutional investors.

Supported by the Dubai Land Department, International Property Show (IPS) is the leading consumer event which provides a perfect platform for both international and local real estate markets to showcase their residential, commercial and mixed-use real estate products and to conduct serious transactional business. With the stability of the UAE real estate market, which continues to show a clear sustainable growth, IPS 2017 is set to be the most exciting show yet, providing consumers and real estate professionals from here and around the world with a ‘one-stop shop’ opportunity to capitalise on and take advantage from the best property deals locally and internationally.

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Bitcoin – more than what meets the eye KARACHI

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ou cannot carry it in your wallet, but it is susceptible to theft.

You cannot see it, but it is still worth close to an ounce of gold.

It remains one of the most volatile ‘assets’ in the world, increasing close to 7,500% during calendar year 2013, the time it started to gain popularity. From January

2013 to November, its price rose from $13 to $980 before the fall began. Bitcoin, the digital currency that has caused many to have sleepless nights, is not printed by any central authority but its market is worth over $17 billion roughly 5% of Pakistan’s economy. It is produced by people known as bitcoin miners who solve complex mathematical problems by securing transactions and in return get rewarded with newly generated bitcoins.

Since its inception in 2009, Bitcoin has been a source of controversy and myths, but recently, there have been moves to popularise it and brand it as a state of the art, game changer in the world of Rinance. Japan is set to begin recognising bitcoin as a legal method of payment. While mining ensures that a Rlow of the currency remains, solving those mathematical problems gets harder with each transaction.

If one wishes to buy Bitcoins they

can register at one of the several exchanges located all over the world.

Bitcoin in Pakistan The digital currency has been swiftly gaining worldwide popularity, but there is only one Bitcoin exchange trade operating in Pakistan at the moment.

Urdubit, established in 2014 by Zain Tariq and Danyal Manzar, gives Bitcoin users in Pakistan a platform to trade the digital currency. However, founders of the exchange hoped that, along the way,

they would continue educating Pakistanis about the crypto currency. In fact, in an interview with CoinDesk the same year, the two had said that they were hoping to make the market liquid for Bitcoin.

“Back in 2014, we were trading one Bitcoin per month. Today we are trading 15 to 14 Bitcoins per day,” “Recently 40% of our company was bought by (Tameer Microfinance Bank Limited CEO) Nadeem Hussain.”

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oors of Member Customs’ office are open round the clock for resolution of business community’s issues besides every possible step will be taken to facilitate importers and exporters who are back bone of the economy. These views were expressed by Federal Board of Revenue Member Customs Muhammad Zahid Khaokhar while addressing a gathering of businessmen from various walks of life at the Lahore Chamber of Commerce and Industry (LCCI) on Saturday.

The FBR Member Customs answered various questions asked by the importers and exporters especially on refund and rebate, delays in consignments’ clearance at the Karachi International Containers Terminal (KICT), insufficient National Bank of Pakistan (NBP) branches for depositing duty and taxes, bottlenecks in WeBOC systems, harassment by Customs Intelligence and Investigations teams on the parties from Thokar Niaz Baig to Brandreth Road

despite the fact that each and every document of legal import is provided to the customs authorities and excessive and unjustified valuation of goods.

While talking about delays in clearance of consignment at Karachi International Containers Terminal, he said that the delays were mainly due to the too much congestion at the port however, the customs department has taken notice of situation

and is doing all out efforts to clear consignment at the local port, .

Pakistan Railways can play vital part in making the local ports functional by ensuring regular arrival and departure of locomotives thereby enabling the consignments clearance at the earliest, he stated.

“Role of Pakistan Railways is important in reducing burden at the Karachi Port, he said, answering a question that duty on raw-material is already at the lowest ebb which cannot be further reduced, however, if there is any discrepancy we are there to look into matter in the best national interests.

In answer to a question about capacity building of importers and exporters, he pledged to hold training and workshops for the importers and exporters to build up their capacity.

LCCI Senior Vice President f o arance Amjad Ali Jawa, Vice Presie l c n i elays ional dent Nasir Hameed, Khawaja bout d ternat a n I g i n h i Khawar Rasheed, Zeshan c k e a r h t a tal t k tha t at d n i Khalil Rehan Sadique and e a s m e n h inal, h consig o muc others also spoke on the m o r t e t e s h to t iner e a t occasion. u e n d h o t y c r, nl

ai eve were m rt how o p ice e h delays at t en not k n a o t i t s s a ent h conge fforts epartm ing all out e d s m custo rliest d is do the ea ion an t t a a t u t n i of s ignme r cons to clea

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Tuesday, April 4, 2017

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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

Yet another loan programme

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he government has signed yet another agreement with the World Bank to get half a billion loan for financial and social sectors reforms. At least $300 million are earmarked to support the government efforts to promote an inclusive and transparent financial sector and raise the financial access throughout Pakistan up to 50 percent by 2020. A portion of funds will be utilized to extend private sector credit access up to the small and medium enterprises by 15 percent this fiscal year. At least $100m will go to the Benazir Income Support Programme to strengthen the social safety net systems for the poor. The government claims it will enhance their human capital and access to complementary services. The repeated negotiations of loans show how desperately the policymakers depend on the foreign assistance. Instead of creating industrial surplus, achieving financial stability and enhancing exports, the government is meeting social, industrial and budgetary requirements by obtaining loans on one pretext or the other, making the whole nation hostage to the international donor agencies.

It is not denying the fact that the BISP is a failure from the beginning as it could not bring any visible change in the lives of the poor.

Rather, it has allegedly opened new vistas of corruption and mismanagement in the official hierarchy. According to experts, the disbursement of a few thousands rupees among the poor in every three months has increased the number of beggars in the country. It is very easy to provide fish to a poor everyday but it is difficult to tell him how to catch a fish. The country needs investment programmes and conducive environment to support startups and boost investment activities, but Pakistan’s position on ease of doing business is not very promising and investment climate is marred by overlapping taxes. On another note, corruption is rampant and the government has failed to curb it so far.

The Supreme Court has recently dismissed some senior officials of the National Accountability Bureau who had lost their credibility in this vital department. It is yet to be seen how the government will be able to spend half a billion dollars support programme for the social sector, but apparently the end result will be another failure.

The country’s economy is growing because of the market forces of demand and supply.

thar coal project T

LAHORE

Dr AFtAB AFZAL

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he Pakistani and Chinese firms are working on a project to produce 1.3 gigawatts electricity by using coal in Thar desert. The country has millions of tons coal deposits which could be utilized to resolve the decades old energy crisis. The industry of the country is expanding and needs 24 hour uninterrupted power supply. However, the daily blackouts have not only affected the industrial activities, but also domestic consumers.

The shortage of electricity has been seen as one of the principle reasons hindering the in-

dustrial growth. At a time when various countries of the world, including China, are curtailing their reliance on coal-fired power stations, Pakistan is shifting to the coal energy which could cause environmental hazards at the end. Media reports suggest that many countries, including Germany, are gradually switching over to the clean energy though coalfired stations still cater to the needs of their industry. Pakistan has signed $3.5 billion deal with China to build the coal power plant and is spending another $3 billion to lay down a transmission line across the country.

The current Chinese government is friendly with Pakistan

and is using its resources to develop infrastructure and energy sectors in Pakistan, but conditions could change any time in the future. According to experts, coal reserves are the natural treasure for the energy starved Pakistan as it would not only give the nation a cheap electricity generation option, but would also lower its reliance on imported petroleum and liquefied natural gas. Pakistan spends $8 billion precious foreign exchange on the import of petrol and gas annually and Thar coal reserves are enough to generate 15 giga watts electricity in 10 years. The Thar coal project is an opportunity for the Chinese companies to make healthy profits at a time

when China itself is trying to reduce its reliance on coal power.

Pakistan is fully heading towards coal energy as it has limited options in the current situation.

However, the government should also look for other resources to fulfill the energy requirements in the coming decades. The best option is the hydel power, but India has been building dams on the rivers flowing through Pakistan in violation of international treaties. The government should start diplomatic offensive to inform the world about the Indian hegemony. Environment is the biggest issue for the country and a study should also be launched to count hazards of coal power plants.

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UAE personal loans increase to $95.27 billion DUBAI: The total volume of personal loans in the UAE increased to Dh349.9 billion ($95.27 billion) in February 2017, according to a UAE Central Bank report issued on Tuesday. The figure is an increase of 3 percent over January’s total loans. By providing personal and corporate finance facilities, as well as creation of jobs, the UAE banks continue to play a dynamic role in establishing a robust economic development process through the mobilisation of financial resources, ensuring the required financing for the support of the national economy and creating the required investments, the report added said a Wam news agency report. In further details, the report mentioned that the total banking reserves at the Central Bank increased to Dh257.7 billion in February from Dh247.7 billion in January 2017. The banking sector boosted its total investment value to Dh296.5 billion, an increase of Dh4.4 billion from Dh292.1 billion in January 2017.

cpec a game changer to bring prosperity: rccI RAWALPINDI

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resident Rawalpindi Chamber of Commerce andIndustry (RCCI) Raja Amer Iqbal has said that ChinaPakistan Economic Corridor (CPEC) is crucial for the country’s economic stability and prosperity. Talking to a group of traders at RCCI he asked government to set up a working group to analyze and realize maximum opportunities from CPEC. The working groups must include representatives from chambers of commerce, experts and consultants, he suggested. RCCI president added that while

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materializing all projects, it should be considered that new industrial zones do not effect existing businesses. A joint venture strategy including Chinese and Pakistani companies can capitalize this golden opportunity, he added. Raja said: “CPEC is a mega development initiative and a game changer for Pakistan and the region as well. Amer said Rawalpindi is a major city that falls in the northern part of CPEC project that is why there exists a huge potential to boost trade and other business activities in the city. He urged the government to include Rawalpindi in the CPEC project due to its location, the city has the potential for setting up cold storages, goods transportation and warehouses to carry out the project at a fast pace. He said Rawalpindi is a hub of trade involving Kashmir, Gilgit, Punjab and KhyberPakhtoonkhawa and has road and rail links with various parts of the country.

Pharmaceutical, poultry, marble, gem and jewelry, Information technology and defense production are prospective sectors where joint ventures can be started, he added.

Friday April 4, 2017

Chambers

uAe investors invited to explore pakistan for JVs K

ISLAMABAD

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halid Malik, Senior Vice President, Islamabad Chamber of Commerce and Industry invited the UAE investors to explore Pakistan for investment and joint ventures. He was addressing a seminar organized by RAK Investment Authority, Government of Ras Al Khaimah, UAE in collaboration with Islamabad Chamber of Commerce and Industry on investment opportunities in Ras Al Khaimah FREE TRADE Zones.

Khalid Malik said that Pakistan was providing lucrative incentives to foreign investors while ChinaPakistan Economic Corridor project has started a new era of investment activities in the country. He said that time was ripe for UAE investors to take more interest in Pakistan for investment and joint ventures in areas of interest. At the occasion, Sameer Aqil, Senior Marketing Executive, RAK Investment Authority gave a detailed presentation to the business community about Ras Al Khaimah Free Trade Zone (RAK FTZ). He said that established in

2000, RAK FTZ has become the investment destination of choice for more than 8600 companies from over 100 countries, representing more than 50 industries.

Highlighting beneRits of investing in RAK FTZ, he said it offered tax free environment, 100 percent foreign ownership, fast & efRicient business setup, sophisticated support services and fast-track UAE visa to the foreign investors. He said RAK FTZ was at a distance of 45 minute drive from

Dubai and provided low cost of doing business as compared to other regions of UAE with high returns on investment. He said RAK FTZ was equipped with all modern facilities including seaports, highways. The required services to set up a business were provided under one roof while all procedures to establish a business were completed within days. He said RAK FTZ was a gateway to the fastgrowing global markets as it provided easy access to markets across Europe,

Dubai chamber of commerce and Industry holds briefing on new bankruptcy law

T DUBAI

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he Dubai Chamber of Commerce and Industry recently held a briefing to discuss the United Arab Emirates’s new bankruptcy law. The law sheds light on ways to avoid bankruptcy cases and the liquidation of debtor assets. “This bankruptcy law is a result of the ministry’s commitment to develop a new draft legislation based on modern legal and economic principles to help ensure financial stability and develop the UAE’s economic and financial legislative structure,” Younis Haji Al Khoori, UAE Ministry of Finance undersecretary, said. “The bankruptcy law provides protection to

all parties involved and helps in attracting foreign investments due to the increased trust in the economic environment and legislative and legal protection for businesses.”

In addition to Al Khoori, attendees at the event included Hamad Buamim, president and CEO of the Dubai Chamber; Majid Saif Al Ghurair, chairman of the Dubai Chamber; Dubai private sector representatives; local business community members; and Dubai Chamber members.”The law sends a clear message to investors and key stakeholders in the private sector that the government will adapt regulation to meet their requirements and ensure their rights,” Buamim said. “It should improve ease of doing business

and will likely boost business confidence and foreign investment in the UAE.” Meanwhile, The Dubai Chamber of Commerce and Industry held economic meetings with its counterparts in Ras Al Khaimah (RAK) and Saudi Arabia, the Dubai government body announced on Thursday. During the meeting with the RAK Chamber of Commerce and Industry, Dubai officials shared knowledge they have gained within the emirate, as well as displaying smart services provided to their members and businesses. In a separate meeting with representatives from Saudi Arabia’s Chamber of Commerce and Industry, discussions covered customer services and systems, as well as ecofriendly building solutions.

North Africa, Middle East, South and Central Asia. He stressed that Pakistani investors should explore investment opportunities in RAK FTZ to maximize their business prospects.

Tahir Ayub, Vice President, Islamabad Chamber of Commerce and Industry thanked the representatives of RAK Investment Authority for organizing seminar at ICCI that provided useful information to the business community on investment potential in RAK Free Trade Zones.

russia sees first growth for two years in Q4 ussia’s economy expanded for the first time in two years in the fourth quarter of 2016, data from the state statistics service showed today. The country recorded 0.3 percent growth in gross domestic product year-on-year, Rosstat said, as Moscow pulls itself out of a two-year economic crisis triggered by tumbling oil prices and Western sanctions over Ukraine. Russia’s GDP last experienced growth in the fourth quarter of 2014, when it grew 0.2 percent. Rosstat said that Russia’s GDP had contracted 0.2 percent overall last year, after having shrank 2.8 percent in 2015. The Russian government expects 0.6 percent growth this year. Economy minister Maxim Oreshkin has said that growth could even reach two percent. –CB Report

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Farrukh takes charge as Addl Collector (Appraisement-West) Tuesday April 4, 2017

National Asif Abbas takes charge as Additional collector in Sialkot ISLAMABAD

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ISLAMABAD: Farrukh Sajjad, a Pakistan Customs Service officer of BS-19, has assumed charge of the post of Additional Collector, Model Customs Collectorate (AppraisementWest), Karachi.

The officer, in pursuance of Board’s Notification No.0905-C-II/2017 dated 16.03.2017, relinquished the charge of the post of Additional Director, Directorate of Intelligence & Investigation-FBR, Karachi with effect from March 29.

Iram Adnan takes charge as training & research-Ir Dg I

ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

sif Abbas, a Pakistan Customs Service officer of BS-19, has taken charge as Additional Collector, Model Customs Collectorate, Sialkot. The officer assumed the charge after availing 131-day leave from November 20, 2016 to March 20, 2017. Asif, in pursuance of Board’s Notification No.0905C-II/2017 dated 16.03.2017, relinquished the charge of the post of Additional Director, Directorate of Intelligence & Investigation-FBR, Regional Office, Faisalabad with effect from March 20 and took charge as Additional Collector, Model Customs Collectorate, Sialkot on March 27. The performance allowance (equivalent to 100 per cent of basic pay) in respect of the officer has been restored with effect from March 20. Meanwhile, Ghulam Mustafa, a Pakistan Customs Service officer of BS19, has taken charge of the post of Additional Collector, Model Customs Collectorate, Faisalabad.

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Nasrullah assumes charge as Addl Director of Ipr asrullah Khan Wazir, a Pakistan Customs Service officer of BS-19, has assumed charge of the post of Additional Director, Directorate General of IPR (Enforcement), Islamabad. The officer, in pursuance of Board’s Notification No.0715-C-I/2017 dated 03.03.2017, relinquished the charge of the post of Director (OPS), Directorate General of Intelligence & InvestigationFBR, Islamabad with effect from March 27. Meanwhile, SM Ali Zaman Gardezi, a Pakistan Customs Service officer of BS-19, has assumed charge of the post of Additional Director, Directorate of Intelligence & Investigation-FBR (Customs Enforcement), Karachi. –CB Report

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ram Adnan, a BS-21 officer of Inland Revenue Service, has assumed the charge of the post of Director General, Directorate General of Training & Research (Inland Revenue). Iram, pursuing the Establishment Division Notification No. 1/104/2015-E-4, dated 20.02.2017 and FBR’s Notification No. 0570-IR-I/2017, dated 24.02.2017, took the charge of the said post in Lahore with effect from March 28.

Meanwhile, Muhammad Anwar, a BS-19 officer of Inland Revenue Service, has assumed the charge of the post of Commissioner-IR (OPS).

The officer, in pursuance of Board’s Notification No. 0942-IRI/2017, dated 20.03.2017, relin-

quished the charge of the post of Additional Commissioner-IR, Large

Taxpayers Unit, Lahore with effect from March 24 and took the charge

as Commissioner-IR (OPS) (Appeals) in Sialkot on March.

customs dry port earns rs247m in nine months T

ISLAMABAD

tArIQ DerYA

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he Customs Dry Port Islamabad earned Rs2455million Customs Duty during 09 months of Financial Year 201617. During the first three quarters, the dry port was assigned Rs2208million Customs Duty. So the dry port has gone surplus with Rs247m profit.

The dry port collected Rs771.00million CD during the month of March 2016-17 against the assigned target of Rs585.00million. The dry port Islamabad exceeded all the previous months’ targets. The dry port received Rs152.21million Customs Duty than the assigned target of Rs123.21million for February of Financial Year 2016-17.

During the month of January FY2016-17, the dry port generated Rs326.441million customs duty against the assigned target of Rs270million, so the dry port surpassed the target with +56million.

During December 2016-17, the

dry port collected Rs307.965million CD against the assigned target of Rs260million. During November FY2016-17, the dry port received Rs285.858million CD against the assigned target of Rs245million. During October

FY2016-17, the dry port Islamabad got Rs261.737million CD against the set target of Rs225million. During September FY201617, the dry port collected Rs289.208million CD against the assigned target of Rs290million.

During August FY2016-17, the dry port collected Rs.275.659million CD against the assigned target of Rs276million. During July FY2016-17, the dry port generated Rs158.624million against the assigned target of Rs119million.

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Hashish, opium, smuggled mobiles recovered in March at BKIAP PESHAWAR: The customs officials have recovered hashish, opium and smuggled mobile phones in the month of March at the Bacha Khan International Airport in Peshawar.

There were 35 passengers rejected by the custom officials for incomplete documents while five suspects were arrested for smuggling.

The sources on Wednesday told Customs Today that an official in-charge duty has also foiled an attempt to carry phones in a bag while other passenger was caught for smuggling drugs. The official said customs Peshawar airport stations have collected stuff worth Rs millions while more efforts will be made to increase the collections at the Bacha Khan Airport in Peshawar.

Deputy collector Asma hameed issues oNo in favour of ASo FAISALABAD

IQrA ShehZADI

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he Deputy Collector Customs Adjudication Asma Hameed has issued Order-in-Original (ONO) in favour of Anti-Smuggling Organization Faisalabad. According to details, a team of the Anti-Smuggling Organization (ASO) intercepted a vehicle loaded with garments in different color and brands and other things. The smuggled vehicle and goods were brought into country without payment of customs duty and taxes through unauthorized way. The customs team arrested the owner of the vehicle who was identified as Muhammad Abid and another person named as Muham-

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mad Abrar. The customs official asked the driver to produce documents regarding import of vehicle and goods.

But he failed to produce any lawful proof. The particular of the vehicle were checked on the website and found not tallied. The incharge of PRAL Customs Dry Port has informed that the vehicle having (cut & weld) was not imported in the country. So it is evidence that as the result of forensic science laboratory, testing report of the vehicle i.e vehicle chassis number frame is found cut and welded means original chassis number has been cut away and a bogus chassis number has been welded in the chassis frame has been found cut and welded.

During the proceedings, Inspector Asghar Mehdi Naqvi appeared from the petitioner side but no one was appeared from the respondent side. The case was decided on the basis of the facts and material available. After hearing the case Deputy Collector Asma Hameed issued ONO in favor of ASO Anti Smuggling Organization under section 156(1)89 of the Customs Act 1969.

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About 244 trucks enter both countries with import and export consignments

Faisalabad ASo seizes items worth rs33million in 2nd week of March FAISALABAD

NAeeM SheIkh

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he Anti-Smuggling Organization (ASO) has conducted various operations against smugglers after receiving special instructions from Model Customs Collector Muhammad Sadiq and recovered smuggled goods worth Rs33million during the second week of March-2017. Sources told Customs Today that Deputy Collector Muhammad Rizwan constituted a team to curb smuggling attempts in the region. The ASO team, consisting of Superintendent Saeed Akhtar Joiya, Inspectors Ali Zahid, Khalid Ashraf Noor, Khalid Dogar and Sepoys Muhammad Ashraf, Liaquat Ali, Israr Ahmad and Muhammad Abdullah, impounded three Non-Duty Paid and tempered vehicles worth Rs02.1million under Section (U/S 16 NDP). These vehicles were brought into the country without payment of customs duty and taxes. Sources said the ASO authorities also confiscated miscellaneous smuggled items (4727 kilograms) worth Rs01.2million during said period.

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ISLAMABAD

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n the Rirst day after 33 days of stoppage at the Pak-Afghan Torkham International Border, about 244 vehicles, loaded with different kinds of goods, entered into both countries with import and export consignments.

According to Superintended Naeem Khan, about 14 vehicles, loaded with fresh fruits and vegetables, entered into the territory of Pakistan whereas the about 230 vehicles, carrying export goods like sugar, Kino, fresh fruits and vegetables, crossed through the PakAfghan border.

Naeem Khan said the vehicles, which crossed the border from both sides today, were already stranded on the roadsides since many days.

The total 50 vehicles, carrying exported sugar, passed through the border today. The commerce ministry has granted permission to the sugar exporters to export sugar to Afghanistan. Hundreds of empty vehicles entered into both countries for loading fresh consignments.

Naeem said he cannot provide revenue Rigures as it is the Rirst day

Tuesday April 4, 2017

and most of the duty taxes have been deposited into banks. Hundreds of pedestrians entered into both countries, and now proper system of checking and scanning has been adopted for pedestrians.

Meanwhile, The European Union (EU) has welcomed the decision of Prime Minister Nawaz Sharif for reopening the Torkham border between Pakistan and Afghanistan to facilitate the Pak-Afghan Trade Transit Agreement. Pakistan and

Afghanistan share huge volume of transit and trade activities as there is no shipment available in Afghanistan to stream a trade line with regional and international countries like China, Europe, America, Dubai and several other multinational exporters in the world. The statement

by EU on Tuesday about the reopening of trade activities between Pakistan and Afghanistan appreciated the decision of Prime Minister Nawaz Sharif in good gestures.

NAB to investigate ‘fake refund claims’ from 2009 to 2015

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KARACHI

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he National Accountability Bureau (NAB) has been tasked with investigation into the release of refund and rebate claims worth billions of rupees from 2009 to 2015, it is learnt here.

Sources told Customs Today that a team of senior NAB ofRicers met with FBR Chairman Dr Muhammad Irshad who delivered to them the six years data of the released funds.

The sources said that NAB has been directed by the federal government to investigate the matter in which billions of rupees were re-

leased on fake receipts in the light of SRO1003(I)/2011 and a circular issued by the Chief Income Tax OfRicer Aftab Ahmed and Member Directorate Tax Khawar Saeed Butt in

2009. Responding to a query, the sources disclosed that the FBR has already handed over the record to the authorities concerned, adding that complete record is to be pro-

vided to the NAB authorities by the end of the current month.

The sources further revealed that the FBR chief has also appointed an ofRicer as the “focal person” to assist the NAB investigation team. Dr Tariq Ghani, the chief administrator, FBR, has been appointed as a focal person for assisting the NAB. The sources further hinted that the FBR ofRicers and ofRicials may also include into the investigation in connection with releasing fake refunds during the time period of 2009 to 2015. Responding to a query, the sources further informed that the FBR authorities have also provided the bank accounts and service details of some FBR ofRicers as per requisition of NAB authorities.

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Turkey’s Economic Confidence Index rises Tuesday April 4, 2017

World

ANKARA: The confidence in Turkey’s economy has increased in March, according to the Turkish Statistical Institute Thursday. The Economic Confidence Index advanced by 5 percent to 96.9 points in the month from 91.5 points in February, TurkStat said in a report. “This increase in economic confidence index stemmed from the increase in construction, services, consumer and real sector confidence indices,” it said. Data showed that all sub-indexes except retail trade contributed positively to the healthy improvement in main reading with advances up to 12.3 percent.

Construction confidence index was the best performer in the month, surging to 85.8 points, up by 12.2 percent. Services was second best sector with a 4.4 percent advance to 96.9 points.

Suspected Nam rhino horns seized in china

Iran budget relying more on oil: $3.4b budget deficit TEHRAN

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BEIJING

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Man suspected of having travelled from Namibia was arrested at the Hong Kong International Airport in connection with 12 rhino horns found in express air parcels.

According to international media reports, Hong Kong customs last Wednesday seized the 12 pieces of suspected rhino horn that were in two express air parcels. The horns weighed about 6,6 kilograms and are estimated to be N$1,3 million.

During a cargo examination, customs ofRicers screened two express parcels declared as “coffee”, and originating from Namibia. However, the ofRicials reportedly found the suspected rhino horns after opening the parcels. After follow-up investigations, a 42-year-old man, whose identity has been withheld, was ar-

uk banks make £9bn in profits in tax havens he 20 biggest European banks posted profits of at least £18bn in global tax havens last year, according to a report by Oxfam. Meanwhile, the UK banks included in the report – HSBC, Barclays, RBS, Lloyds and Standard Chartered – reported combined profits of £9bn in global tax havens, equivalent to 67% of their profits.

Oxfam found that £522m of the £9bn was made in six UK-linked tax havens, where they paid just 7% tax on their profits, compared to the UK corporate tax rate of 20%. The six UK tax havens were Bermuda, the British Virgin Islands, the Cayman Islands, and the Crown Dependencies (Guernsey, the Isle of Man and Jersey). The top 20 EU banks meanwhile made €4.9bn (£4.2bn) in profits in Luxembourg, more than they made in the UK, Sweden and Germany combined. –CB Report

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rested. The man has since been released on bail, pending further investigations. Namibian police spokesperson Edwin Kanguatjivi told The Namibian yesterday that they were aware of the incident, but could not conRirm whether the man or the rhino horns which were discovered were from Namibia. “Police are working with Interpol on the case, and we will inform the public

as soon as we get anything,” he said.

Environment ministry spokesperson Romeo Muyunda said the ministry was aware of the reports, but could as yet not establish whether the incident had any links to Namibia. Muyunda also said the ministry was trying to establish if indeed the man who was arrested in connection with the rhino horns had travelled from Namibia.

Saudi Arabia takes steps to boost trade with tIr

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IYADH: Saudi Arabia has announced its decision to accede to the global customs transit system for moving goods across international borders the United Nations TIR Convention and to make the system operational in 2017. Due to its strategic location, the kingdom is the critical link between the GCC countries and the wider Middle Eastern region, said a statement. The country’s accession to TIR, with its benefits of seamless

cross-border connectivity, will therefore open new road corridors along the spine of the Arabian Gulf – transforming the trade potential of the region, it said. Saudi Customs hosted IRU – the world’s road transport organisation – with IRU secretary general, Umberto de Pretto, in Riyadh this week, at a workshop offering insights and guidance on the application of TIR to streamline trade facilitation, it added. –CB Report

look at Iran’s upcoming Riscal budget for March 2017 to March 2018 shows the regime’s budget relying on oil revenue increasing by 11%. Iran’s last Riscal budget showed a 25% reliance on oil revenues, whereas the new budget forecasts a 36% reliance, according to the state-run Tabnak website. The price of each oil drum was forecasted at $40 for Iran’s last Riscal year, whereas this price has been increased to $55 for the new Riscal year. According to calculations and based on statistics published in the new Riscal budget, with each dollar decreasing from the value of an oil barrel, Iran’s regime will be losing over $571 million. Considering the fact that the current price for crude oil is $6 dollars less than the value forecasted in the Riscal budget,

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it is clear nearly $3.5 billion in the government’s forecasted budget will never be realized.

Based on a report titled “2017 Oil Market Outlook” published by Iran’s parliament Research Center, the price forecasted by the government for the new Riscal year is higher than the price forecasted in the budget of other oil exporting countries. For example, Kazakhstan has based its budget on a $40 barrel, Iraq $45, Canada between $36 to $43, Russia $40 and Qatar $49 for the 2017 Riscal year. Considering the fact that OPEC oil is at least $1 to $2 less than Brent oil, planning a budget based on oil selling at $55 a barrel can leave the government facing many challenges.

Meanwhile, Iran’s unemployment rate in the current Riscal year (March 2016-17) stood at 12.4%, registering a 1.4% rise compared with the last year, the latest report by the Statistical Center of Iran said. The new data show 3.2 million Iranians were unemployed this year.

russia exported 26 MMt of grain

ccording to current information of the Federal Customs Service of Russia, 26.197 MMT of grain was exported from the country this season by March, 2017, or down 1.8% against the same period a year ago (26.679 MMT).

These exports included 20.209 MMT of wheat (up 2.9% from 2015/16), 3.6 MMT of corn (up 16.5%) and 2.2 MMT of barley (down 40.9%), informs UkrAgroConsult.

Russia’s Ag Ministry forecasts that grain exports from the country may total 37 MMT this season against 33.9 MMT in MY 2015/16.

Further prospects of the Black Sea grain market in the season of 2017/18 will be discussed at the XIV International Conference “Black Sea Grain: Wind of Change”, which will take place on April 5-6, 2017 in InterContinental hotel, Kiev, Ukraine. Black Sea Grain conference is large international platform, offering high quality market analysis and networking opportunities for the global leaders of grain and oilseed industry. The event is annually attended by over 800 agribusiness representatives from more than 400 companies and 50 countries worldwide. –CB Report

turkish minister visits Switzerland as europe row simmers

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ANKARA

cuStoMS BuLLetIN report www.customsbulletin.com

urkish Foreign Minister Mevlut Cavusoglu met with his Swiss counterpart after having to call off a campaign appearance amongst diaspora voters, in a bitter row between Ankara and Europe.

Relations between Turkey and Eu-

rope have been severely strained since several Turkish ministers were blocked from campaigning on the continent for a ‘yes’ vote in next month’s referendum on boosting the powers of President Recep Tayyip Erdogan. Swiss Foreign Minister Didier Burkhalter “underscored the validity of Swiss law on Swiss soil, urged Turkey to comply with it,” a statement said. “Freedom

of expression is a universal value recognised by Switzerland, which hopes that this freedom will also hold true for Turkish citizens whether they cast their votes in Switzerland or in their own country,” it quoted Mr Burkhalter as saying. Mr Cavusoglu’s visit comes after the Swiss government rejected a request from Zurich authorities to cancel a previously planned visit by

the minister earlier this month, after the canton’s security spokesman warned that a rally he was due to attend could be hit by “heavy demonstrations”. However, the organisers cancelled the event after the hotel they had booked refused to host it.

Swiss police on March 10 also blocked a rally in the northern canton of Argau supporting a “yes” vote in the referendum.

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Sri Lanka Feb tea export prices up, volumes at eight-year low

World Customs

COLOMBO: Tea export volumes from Sri Lanka fell 5 percent to 22.4 million kilos in February 2017 from a year ago, the lowest shipments for the month in eight years, but earnings were higher, brokers said. The February 2017 shipments were a significant improvement from the January quantity of 20.1 million kg, according to Asia Siyaka Commodities. “The value of exports has risen sharply in February following much higher auction prices and a successful Western quality season,” they said. The country earned 17.1 billion Rupees in February, “up a healthy 18 percent on the previous year’s figure of 14.5 billion Rupees,” the brokers said in a report.

canada, Bakken light oil jump as supply cut meets demand surge rices for light crude surged in Canada and the northern U.S. after an oil-sands upgrader shut for maintenance because of a fire and reduced supply caused by preparations to place the Dakota Access pipeline into service. Futures for the light “synthetic crude” produced from oil sands operations in Canada, jumped $1.45 to $4.70/bbl Monday compared to the WTI benchmark. The increase was the highest in more than a year, data compiled by Bloomberg show. Bakken crude at Clearbrook, Minnesota, rose to a $0.25 premium to futures, the first since last June, from a $0.30 discount on Friday. Supply of light synthetic crude into the U.S. Midwest from Alberta was curtailed at the same time demand for light oil was increasing to fill the 1,172-mile Dakota Access pipeline. Suncor Energy said flows out of the Syncrude upgrader, which can process 350,000 bpd of oil-sands bitumen into lighter oil, will resume at 50% capacity in April. –CB Report

Shipped synthetic drugs seized at cincinnati-area airport

irector of Dubai Customs, Ahmed Mahboob Musabih launched a new initiative in which all Dubai Customs departments will be seen giving 10 hours a month to brainstorming about innovation and coming up with out of the box ideas and services. The idea is inspired by 10X Initiative, which was launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, and aims to position Dubai as a global capital of innovation in the next 10 years. His Highness’s vision is to push the UAE towards the top of all global competitiveness indexes. The UAE has already progressed on the 2016 Global Innovation Index. It ranked first among Arab countries and 41st worldwide in terms of overall performance on the index, up from second in the Arab World and 47th globally in 2015. –CB Report

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exxon’s tax claim under Sakhalin-1 project grows to $637 million he amount of tax claims of US ExxonMobil under the Sakhalin-1 project rose to $637 mln and the arbitration case trial is scheduled to April 24-28, press service of the Russian Finance Ministry said.

“The arbitration case hearing is set to April 24-28. The subject matter of the dispute is interpretation of a provision on the income tax in the Sakhalin-1 project production sharing agreement. The claim amounts to $637 mln. The Russian Federation is ready for out-of-court settlement of the dispute on conditions mutually beneficial for the parties and the claimant was repeatedly informed to that effect,” the Finance Ministry said. In April 2015, ExxonMobil lodged a claim to the Stockholm arbitration requiring changes to the interpretation of the Sakhalin-1 project Production-Sharing Agreement (PSA) paragraph on taxes. The company believes its subsidiary Exxon Neftegaz Limited overpaid approximately $500 mln worth of profit taxes within Sakhalin-1. At the time of the PSA signing in the mid-1990s profit tax of 35% was imposed in Russia while in 2009 it was reduced to 20%, but ExxonMobil continued to pay at the earlier level of 35%. Russia believes that PSA terms are not subject to change within its period of validity. –CB Report

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Dubai customs gives more time to innovation

Tuesday April 4, 2017

CINCINNATI

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ederal border protection ofRicials say they seized scores of shipments of synthetic drugs this month at an express consignment facility at the Cincinnati/Northern Kentucky International Airport. Agents with the Cincinnati ofRice of the U.S. Customs and Border Protection agency said Wednesday that they seized 83 shipments of drugs, including more than 36 pounds of a deadly fentanyl de-

rivative, from March 6 through March 26. The agency’s statement says the drugs were seized at a DHL express consignment facility at the airport in Hebron, Kentucky.

Federal ofRicials say the packages of drugs sent from China were destined for individuals in 17 states, including Ohio, and in Canada. They were listed in shipping documents as items such as “hardware nuts” and “snap hooks.” Authorities say the investigation is continuing.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Meanwhile, US Customs and Bor-

der Protection at the Hidalgo International Bridge arrested a man from Yakima, Washington after the discovery of more than $163,000 in unreported currency concealed within the man’s luggage as he attempted to depart the United States. CBP ofRicers were conducting an outbound examination. They encountered a 34year-old man, a United States Citizen from Yakima, Washington traveling in a taxi as he approached the exit lanes, heading towards Reynosa. After referring the taxi passenger for further inspection, ofRicers discovered 11 packages concealed in his luggage containing a total of $163,130 in unreported currency.

Australia’s ‘google tax’ has been approved

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CANBERRA

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40% tax rate on multinational companies that use overseas tax havens to avoid paying tax in Australia was passed by the Senate last night. The diverted proRits tax (DPT), also known as the “Google tax”, was a key part of treasurer Scott Morrison’s budget measures last year and will begin on 1 July, 2017. The government hopes it will deliver $100 million in rev-

enue annually from 2018-19. The DPT only applies to multinationals with a global income of more than $1 billion and an Australian income of more than $25 million and follows on from the Multinational AntiAvoidance Law (MAAL), introduced in January this year, which targets artiRicial proRit shifting by multinationals. The new law means Australia is just the second country in the world, after the UK in 2015, to introduce such a company tax. The 40% rate has a built-in penalty, 10% higher than the standard 30% com-

pany tax rate. The tax is triggered if a company moves revenue initially booked in Australia to a country with a tax rate lower than 24%. Debating the bill in Parliament, Morrison said the higher penalty rate was aimed at “encouraging greater cooperation between uncooperative multinationals and the ATO. As a result this will greatly reduce the length of disputes between the ATO and multinationals, and lead to timelier dispute resolution.”

The DPT does not apply to managed investment trusts or similar

foreign entities, sovereign wealth funds and foreign pension funds.

“The Turnbull government is determined to ensure multinationals do the right thing and pay their fair share of tax here in Australia so that Australian citizens get the money that is owed to them to fund vital infrastructure and services,” Morrison said. In last year’s budget, the treasurer allocated $679 million over four years to fund a 1,300-member ATO taskforce focussed on multinationals, private companies and wealthy individuals.

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FIA detains two accused Tuesday April 4, 2017

Lahore

LAHORE: A team of the Federal Investigation Agency (FIA) on Thursday arrested two accused, including a proclaimed offender.

According to FIA spokesman, Muhammad Ashraf of Sargodha extorted Rs 2,200,000 from Hafiz Abdul Rehman for employment in Italy.

The team also arrested a proclaimed offender, Muhammad Ashraf of Faisalabad. Meanwhile, A team of Federal Investigation Agency (FIA) on Wednesday conducted a raid at Katchehri bazaar Faisalabad and arrested a persons involved in selling of snatched /stolen mobiles phones after changing IMEI numbers and changing unique identifications.

customs tribunal decrease penalty imposed on New Shalimar Steel LAHORE

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ustoms Appellate Trbunal has modiRied the impugned order and reduced the penalty to Rs1,00,000 from Rs5,00,000 in case of M/s New Shalimar Steel Industries Private Limited against Colloctor of Customs Appraisment Dry Port Mughalpura Lahore.

According to the brief fact of case, during the stock taking the goods as tabulated in the show case notice were found available in the bonded warehouse and were cross checked with the monthly return.

It was also revealed that c M/s New Shalimar Steel Industries deliberately misused the facility of manufacturing bond with the mala Ride intention. On the contravention of laws

customs authorities imposed a penalty of Rs79,75, 008 on New Shalimar Industries. The case was submitted for adjudication under the relevant provisions of the Customs Act 1969. After fact reading the collector of customs (Adjudication) Lahore passed the order in origional that the customs authorities recover the evaded amount from the party with the penalty of Rs5,00,000. Feeling aggrieved from the order the appellant Riled the case before the Customs Appellate Tribunal on the grounds that the Section 32(1) ibid has been invoked in the impugned show case notice which is unlawful and he deposited all taxes and duties an the goods as per law. On the other side the representatives of department argued in the favor of respective party. After hearing the case Customs Appellate Tribunal modiRied the impugned order to decrease penalty of Rs5,00,000 to Rs1,00,000.

Fto adjourns hearing of case filed by SAM trading

LAHORE

SAJID NAwAZ

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he Federal Tax Ombudsman (FTO) has heard a case Riled by proprietor of M/s SAM Trading against Regional Tax OfRice, (RTO-II) Lahore.

NBp achieves 12pc growth in profit

Lahore Dgtr conducts training workshop for customs officers

he 68th Annual General Meeting of National Bank of Pakistan (NBP) was held. NBP President Saeed Ahmad chaired the meeting which was attended by the shareholders. The shareholders approved financial statements and cash dividend of Rs7.50 per share as recommended by the Board of Directors of the bank. This translates into 78 percent dividend payout of the bank’s distributable profit for the year 2016 (after statutory reserve allocation). The shareholders were informed that the bank achieved 12 percent growth in pre-tax profit for the year as it increased by Rs3,925 million from Rs33,216 million for the year 2015 to Rs37,141 million for the year 2016. After-tax profit amounted to Rs22,752 million ie 18pc higher than Rs19,219 million of prior year. This is highest ever profit in history of the bank translating into Rs10.69 earnings per share.

Despite a generally difficult year for the banking industry, the bank succeeded to record growth in both interest/mark-up income and fee based income. –CB Report

he Directorate General of Training & Research (Customs) Regional OfRice, Lahore has conducted a three-day training workshop for the Customs ofRicers.

The DGTR organised the workshop in collaboration with United Nations Environment Programme (UNEP) and Ozone Depleting Substances, Ministry of Climate Islamabad at a local hotel. As many as 26 Customs ofRicials from the Central Region participated in this training workshop on the topic of ‘Trade Controls on Trading of

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Ozone Depleting Substances (ODS)’.

The training was conducted by UNEP’s experts Tharaka Seneviratne, Masuf Ali and master trainer Hyderabad Additional Collector Rehmatullah Vistro. CertiRicate distribution ceremony was conducted by Lahore Directorate General of Training & Research Director Saima Shahzad, IC/ NPD (NOU) Joint Secretary Iftikharul-Hassan Shah Gilani, Bangkok (Asia & PaciRic) UNEP Senior Regional Coordinator Atul Bagai and consultant Masuf Ali. –M Hayat

According to the details, FTO Advisor Tariq Yousaf heard the case Riled

by Saad Bin Aamir, proprietor M/s SAM Trading. The counsel for the appellant argued that the RTO had failed to release the sales tax refund to the appellant for the last two years. He said that RTO-II collected excessive tax from the company during the last two years. The petitioner approached the ofRicials concerned several times

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for issuance of the refunds, but the RTO ofRicials failed to clear the refunds after the passage of reasonable time.

Finally, the appellant decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims.

The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the RTO-II should make audit of the cases and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO-II argued that the appellant has not submitted all record in the ofRice for claiming refunds. If appellant provides accurate record, the RTO-II will issue the refunds after proper assessment, he added. After hearing the arguments from both sides, Advisor Tariq Yousaf adjourned the case of proprietor SAM Trading until next date for further hearing and directed the parties to appear before him on said date to present arguments in the case.

customs court hears 16 cases’ hearings he Special Court of the Customs Taxation and Anti-Smuggling on Thursday heard 16 cases including pre-arrest bail pleas Riled by suspects.

Most of the cases were adjourned without any proceedings as the parties and lawyers concerned did not appear in the court. Hearings of the pre-arrest bail pleas Riled by accused Abdul Razaq and Salman were adjourned for new dates in next week.

A case against Shaukat Ali was also scheduled for hearing in which court recorded statements of the parties.

Shaukat Ali is on bail nowadays.

Framing of charges against Humayon

Rasheed was also adjourned for next week. Final arguments and statements of the parties concerned in a case of smuggling against RaRique Ali was also scheduled for hearing which is rescheduled for next week. Meanwhile, The Special Court of Customs Taxation and Anti-Smuggling heard 15 important cases on Saturday and adjourned most of the cases until next hearing. About 15 cases of different types, including pre-arrest bail pleas Riled by different accused, were scheduled for hearing on Tuesday.

The court adjourned bail pleas of Azhar Mehmood and Shahbaz until next hearing. –M Imran Mehar

customs Appellate tribunal hears 12 cases

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LAHORE

SAJID NAwAZ

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he Customs Appellate Tribunal division bench-II comprising Judicial Member Omer Arshad Hakeem and Member Technical Imran Tariq heard 12 cases and adjourned all the cases until the next hearing.

The Customs Appellate Tribunal adjourned the hearing of 12 cases, including Shakir Hussain versus Directorate of Intelligence and Investigation Faisalabad, Directorate of Intelligence and Investigation Faisalabad versus Shakoor, Khalid Mehmood versus Directorate of Intelligence and Investigation Lahore.

On Wednesday, the tribunal heard cases of customs Lahore versus A.I Cor-

poration, Maxi Inch versus customs Lahore, Master Link versus Directorate of Intelligence and Investigation Lahore, Directorate of Intelligence and Investigation Faisalabad versus Fakhar Abbas, Abid Butt versus customs Lahore. Furthermore, the tribunal heard Raaz Muhammad versus directorate Multan Unit DG Khan, Union enterprises versus customs Lahore, Muhammad Hakeem versus customs

Faisalabad and Hussain Trading versus customs Faisalabad. In all the cases, the representatives of the appellants and respondents appeared before the court and argued in favor of their respective parties. After hearing the arguments from the parties, the Customs Appellate Tribunal reserved the verdict in few cases of Lahore and adjourned all the other cases until the next hearing.

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Buoys and Dolphins in the port of Rotterdam WASHINGTON: Vessels of all sizes can load and unload both liquid and dry bulk at the terminals and the buoys and dolphins in the port of Rotterdam. This guarantees ship-to-ship transfer operations even in case of bad weather and/or high waves. In the port vessels rarely encounter delays and know in advance when they can load and unload their cargo. They can also use these facilities for lay-by between terminal operations or services like repair work or bunkering. The Japanese ports of Nagoya and Yokkaichi are establishing a company to operate the port’s container terminals and improve their competitiveness against the major transshipment hub of Busan. Nagoya is Japan’s third-largest container port for foreign trade and Yokkaichi is ninth, according to the Japanese transport ministry.

Four ships take berth at port Qasim our ships has taken berth Port Qasim included C.V Al-Asya, C.V Express Black Sea, M.T Bunga Alamanda and M.T Al-Salam-II carrying containers, 23,500 tonnes palm oil and 52,475 tonnes diesel oil were arranged berthing at Qasim International Container Terminal, Liquid Cargo Terminal and FOTCO Oil Terminal respectively on Sunday. Meanwhile two more ships C.V Al-Safat and C.V Jack London with Containers also arrived at outer anchorage of Port Qasim (PQ) during last 24 hours.

Berth occupancy was observed at the port at 60% on Sunday where a total of nine ships namely, Al-Asya, Express Black Sea, Maersk Nicoline, Fu Ming, Pacific Award, Chance, Umm Bab, Bunga Alamanda and M.T AlSalam-II are currently occupying berth to load/offload Containers, Project Cargo, Coal, Soya Bean Seeds,

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LNG, Palm Oil and Diesel Oil respectively during last 24 hours. A record cargo handling was achieved at the port on Sunday where a cargo volume of 175,391 tonnes, comprising 139,177 tonnes import cargo and 36,214 tonnes export cargo inclusive of containerized cargo carried in 3,689 Containers (TUEs) 1,783 imports TUEs and 1,906 TUEs exports) was handled during last 24 hours.

Container vessel Express Black Sea sailed out to sea on Monday morning, while Gas Carrier Umm Bab and Oil tanker Al-Salam-II are expected to sail on same day. Three ships, C.V Al-Safat, C.V Jack London and M.T GSW Forward carrying Containers and Chemicals are expected to take berths at Container Terminal and Engro Terminal respectively on Monday. –CB Report

Ports & Shipping

AApA expresses concern over trump’s proposed 2018 budget

Asian shipping company partners with port of wilmington orth Carolina Ports announced a new partnership on Monday with ZIM Integrated Shipping Ltd. The container carrier recently added the Port of Wilmington to its Z7S all-water Asia-U.S. East Coast service rotation. This weekly service will begin calling on the port in June and provides unprecedented access to major markets in South China, Southeast Asia and India Subcontinent. Known for its speed to market, the Z7S service is the first container service to call the Port of Wilmington using the Suez Canal. Its rotation includes direct access to Da Chan Bay, Yantian, Cai Mep, Port Kelang and Colombo. Outside of Yantian, each of these port calls are new to North Carolina Ports. With extensive port coverage and proven high service reliability, ZIM further improves the gateway that is the Port of Wilmington. ZIM is another returning ocean carrier to the Port of Wilmington after a slot chartering agreement with the CKYHE Alliance in early 2016. –CB Report

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WASHINGTON

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he American Association of Port Authorities (AAPA) has expressed concern over proposed cuts for port-related programmes outlined in President Trump’s Fiscal 2018 budget. According to the AAPA, federal support for port dredging and improvements, environmental enhancements and security could fall under the new administration’s funding recommendations, with potentially signiRicant declines for most federally funded, port-related programmes. The budget included proposed cuts on funding for the US Department of Transportation’s (USDOT) Transportation Investment Generating Economic Recovery (TIGER) grants programme as well as the Department of Homeland Security’s Port Security Grants Programme (PSGP).

Last year, the former provided US ports with US$61.8m in multi-

Tuesday April 4, 2017

modal infrastructure grants such as dock, rail and road improvements, while the latter provided 35 port security-related grants in Riscal 2017. Trump also proposed cutting the Environmental Protection Agency’s (EPA) budget, which funds the Diesel Emissions Reduction Act (DERA) grants, by 31%. “While no details were released today on the fate of this programme, which is authorised at US$100m, DERA grants have been especially helpful in decreasing port-related diesel emissions in near-port communities,” an AAPA’s statement noted. “These fed-

eral grants have helped ports to make investments in clean diesel equipment and reduction strategies at the ports themselves, and they’ve used them to help businesses buy newer, cleaner-burning trucks, locomotives and vessels.” Additionally, while Trump’s proposed budget called for rising the overall US Army Corps of Engineers (Corps) budget by US$400m over the previous administration’s request of US$4.6bn, the proposed measure would still mean a 16% fall compared to the Continuing Resolution Riscal 2017 level.

congress inspects panay, Negros roro ports H

WASHINGTON

cuStoMS BuLLetIN report www.customsbulletin.com

ouse Speaker Pantaleon Alvarez led a group of congressional representatives in inspecting the Strong Republic Nautical Highway or more commonly known as ports for Roll onRoll off (RoRo) vessels in Panay and Negros Islands. Accompanied by Representatives Rodolfo Fariñas of Ilocos Norte, Celso Lobregat of Zamboanga City and Cesar Sarmiento of Catanduanes, Alvarez Rirst inspected the Caticlan Port, which is across world-famous Boracay Island in Malay town last March 18.

Alvarez discussed with Aklan Rep. Carlito Marquez that the improvement of RoRo ports can boost tourism. “We anticipate the influx of tourists this Holy Week.

We wanted to know the state of the ports. We are planning to put

more budget allocation for the improvement of ports and the roads linked to it,” Alvarez said. By March 19, Alvarez and the group proceeded to inspect the RoRo ports in the province and city of Iloilo. Alvarez and the group also had meetings with Iloilo congressmen Jerry Treñas, Richard Garin, Arcadio Gorriceta, Arthur Defensor Jr., Ferj Biron, and Raul Tupas. The RoRo port in Bacolod City, Negros Occidental was the last to be inspected.

Meanwhile, The port exports waste heat to Amsterdam city, coowns a wind farm and is building a 100,000 square metre solar array for completion by 2020. Trade in oil products like petrol and kerosene is set to continue expanding in the short term, according to the five-year plan. It will remain a key activity “as long as no adequate alternatives are available

in our society”. Several European countries have stopped burning coal or announced phase-out plans over the next 15 years, touting it as one of the cheapest ways to slash greenhouse gas emissions. Others, notably Germany and Poland, foresee decades of coal power generation, fuelled by domestic mines.

The Netherlands itself is home to three of the newest coal plants in Western Europe, but these are losing value and threatened with early closure as climate policies bite. Think-tank Climate Analytics says the EU must end coal burning by 2030 under the internationally agreed goal to hold global warming “well below 2C”. The seaborne coal trade is pivoting to Asia, where the polluting fuel is still seen as the cheapest way to meet growing electricity demand. It remains uncertain how many of those power plants will be built, however. China,

the biggest market, is cracking down on excess power capacity, while India’s network infrastructure is playing catch-up with a growth in generation. Air pollution and climate concerns are driving take-up of renewables.

Meanwhile, When Michael von Harten started loading cars onto ships in the German port of Bremerhaven 27 years ago, the facility handled some 700,000 vehicles a year. That number has since surged to 2.1 million, fueled by a dramatic increase in trade that has created thousands of jobs and shored up the local economy. In a town with few options, Von Harten is concerned President Trump could threaten Bremerhaven’s main source of prosperity. The new U.S. president has called on Germany to rein in its 253 billion euro ($272 billion) trade surplus, saying he may impose stiff tariffs on imported goods.

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Customs Intelligence lodges FIR against smuggler FAISALABAD: The Faisalabad Customs Intelligence and Investigation has lodged an FIR against suspects namely Muhammad Ali son of Mushtaq Ahmed who is involved in smuggling of foreign origin cigarettes, and fruits juice made in India. The market value of smuggled items is worth Rs 84,25000.

According to details, the intelligence team raided at godown and recovers foreign origin cigarettes in different brand Apple brand fruit juice made in India, Frooti mango juice made in India.

Tuesday, April 4, 2017

CUSTOMS BULLETIN

customs detains non-duty paid hino truck worth rs 7m during road checking ISLAMABAD M FAIZAN

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irectorate General Customs Intelligence and Investigation Islamabad has detained a non-duty paid used Hino truck Model 2002 bearing registration No GZRA 1623, chassis no. FDIJME 10349 worth Rs 7 million. According to the details, the special car cell received information that a Hino truck was plying in the limits of Islamabad.

After receiving the information, a team of special car cell enhanced checking process on the roads.

During the checking, the team intercepted a Hino truck at trafRic signal I-8 IJP Road, Islamabad.

The Customs Intelligence team asked the owner of the vehicle who was identiRied as Wajid Hussain Shah to produce legal documents regarding possession of the vehicle. The owner only provided a coloured copy of the Registration and Fitness Form “G”. As per registration copy, the Hino truck was found registered as used Hino concrete transit mixer truck Model 2002 and transferred in the name of Wali Muhammad son of Abdus Shakoor. The Hino truck was brought to the HQ ofRice G-10, Islamabad for

further necessary veriRication. According to the Customs data available with the Directorate General Customs

intelligence, the Hino truck was imported against GD No. KAEP HC 8591 dated 24 December 2013 by Rehman

Construction, Quetta by declaring “ Hino old and used adopted concrete transit mixer truck Model 2002,

whereas at the time of interception, the vehicle is found loader used for carriage of goods loading purposes.

Dg Valuation issues customs values of Virtual reality glass KARACHI

wAQAr AhMeD ANSArI www.customsbulletin.com

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he Directorate General of Customs Valuation has revised the customs value of Virtual Reality Glass (low end brands) through Valuation Ruling No 1097/2017 under Section 25A of the Customs Act, 1969.

According to the details, Directorate General notiRied VDB values of Virtual Reality Glass /Box 2.0

vide VDB letter No. 176 dated 0302-2017. Meanwhile, this Directorate General initiated an exercise for determination of customs values of Virtual Reality Glass (low end brands) of different brands.

Meeting with stakeholders was held on 01-03-2017. Importers had been requested to furnish 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 beneRit of difference in price is passed on to the local buyers. No documents were submitted in this Directorate General on or before the said scheduled meeting.

Method adopted to determine Customs values: Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs values of Virtual Reality

Glass (Low end brands). Transaction value method provided in Section 25 (1) was found inapplicable owing to wide variation in the values being declared to the customs. Identical / similar goods value methods provided in Section 25 (5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied upon due to wide variation in declared values of subject goods.

Thereafter, market enquiry as envisaged under section 25(7) of the Customs Act, 1969, was conducted.

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

For the purpose, different markets were surveyed repeatedly. The computed value method as provided in Section 25(8) of the Customs Act, 1969, could not be applied as the conversion costs from constituent material at the country of export were not available. Online values of subject goods were also obtained.

All the information so gathered was evaluated and analyzed for the purpose of determination of customs values. Consequently, the Customs values of Virtual Reality Glass (Low end brands) have been determined under Section 25(9) of the Customs Act, 1969.