Daily on www.customsbulletin.com
Find us on
PakISTaN’S fIRST INDEPTh NEwSPaPER ON CUSTOMS
Daily
ABC Certified
Karachi, Fri April 6, 2018
ISLAMABAD
CUSTOMS BULLETIN REPORT www.customsbulletin.com
S
pecial assistant to the prime minister on revenue Haroon Akhtar Khan has said that withholding tax rates for non-Rilers of income tax returns would be increased in the next budget. Speaking at a pre-budget seminar, Akhtar said that the government would not impose any new tax in the budget that will be unveiled on April 27. Akhtar said that in Pakistan
nobody was ready to pay tax and even hospitals, doctors and big business Rirms were evading taxes. The special assistant defended the tax machinery and said that few FBR ofRicers were corrupt. He also spoke critically about lowering the tariff rates and signing of free trade agreements. “The free trade agreements have eroded Pakistan’s manufacturing base, which was also the reason behind high imports,” said Akhtar. He said that in these circumstances Pakistan cannot achieve 7% annual economic growth rate without hitting a high current account deRicit.
Akhtar’s comments came in the background of current Free Trade Agreement talks with China under
Vol 3, Issue No. 3
Price Rs. 14.00
the second phase. Majority of the stakeholders see further trade liberalisation with China as a grave threat to the industrial base. “Even the multinational companies complain that they cannot compete with goods being imported under various free trade agreements,” said Akhtar. For the last four years, the tax rates for the people who stay out of the net have been going up. Yet the income tax base remains extremely narrow and this year only 1.26 million people Riled income tax returns – 131,000 less than last year. “We have taxed all possible sources of income and consumption and no further avenue is left to tax,” said former FBR chairman Dr Mohammad Irshad. He said that those who are outside the tax net will not come in the net, irrespective how much cost they have to pay for remaining a non-Riler. He said that the increase in tax rates provide more incentives to evade taxes.
Dr Arslan serves notice on impounded car owner who smuggles arms & drugs
Adjudication-II retrieves Rs32.45m in response to seven final notices within 27 days
Customs Preventive foils bid to smuggle gold from AIIA
DG Valuation revises customs values of different types of spun yarn
Sukkur Customs impounds contraband tyres,juices & otheritems following tip-off
Dr. Arslan, has issued a show cause notice to an owner of an impoundedToyota car | SEE PagE 02 |
Adjudication-II issued seven final notices and recovered Rs32.45million | SEE PagE 03 |
Preventive team deputed at AIIA foiled a bid to smuggle huge quantity of NDP gold | SEE PagE 04 |
DG Valuation has revised the customs values of polyester spun yarn, viscose | SEE PagE 09 |
ASO Sukkur, seized 24 sacks of tyres of different sizes, about 960 tins of Rani Juice | SEE PagE 16 |
2
www.customsbulletin.com
British national held at Benazir airport for trying to smuggle 1.75kg heroin Friday, April 6, 2018
Islamabad
ISLAMABAD: The Airport Security Force (ASF) has arrested a British national at the Benazir International Airport for attempting to smuggle heroin outside the country. According to ASF authorities, the accused, identified as Asif Khan, was en route to England on flight PK 785. During a search, 1.75kg of heroin was found in his shoes. The drugs were recovered and the accused was handed over to Anti Narcotics Force (ANF).
Dr arslan serves notice on impounded car owner who smuggles arms & drugs
ISLAMABAD
ISLAMABAD
NaEEM ULLah TaRIQ
TaRIQ DERYa
www.customsbulletin.com
www.customsbulletin.com
he Customs Appellate Tribunal reserved a decision on M/s Pakistan Telecommunication Co Limited’s customs reference. Member Technical Ziauddin Wazir heard the matter along with other cases involving Model Collectorate of Customs and Directorate General of Investigations and Intelligence Islamabad. M/s Pakistan Telecommunication Co Limited had filed the customs reference against the MCC. Earlier, the bench had reserved the judgment on M/s National Highway Authority’s matter which had challenged the decision announced by MCC’s collector customs before the tribunal. The bench reserved judgment after hearing arguments in the case. Meanwhile, the bench adjourned the hearing on Khurram Zafer Nazeer Ahmed and M/s Musa Ghee International’s cases filed against MCC; and M/s Waseem Autos and M/s Nisar Traders cases. M/s Waseem Autos and M/s Nisar Traders had filed cases against the Model Customs Collectorate and Directorate General of Investigation and Intelligence Islamabad.
T
D
r. Arslan, Collector Adjudication Islamabad, has issued a show cause notice to an owner of an impounded Toyota Corolla car LEA-17-4259 which was used to carry narcotics and ammunition. According to details given by sources of Adjudication Islamabad to Customs Today that it has been reported by Deputy Director Intelligence and Investigation (I&I) that, on 26th of January 2018, the Directorate of I&I staff took into said vehicle which was coming from Peshawar side. The drive of the car sped away when I&I staff chased the car. On a thorough search of the car, the staff recovered foreign origin narcotics including 27kg of opium, 16.50kg of hashish, 1.50kg of heroin and one pistol (Tisas Turkire) along with 50 rounds. The said recovered items were seized under Section of 168 of Customs Act-1969 whereas a notice was issued under Section 171 of Customs-Act. An FIR No: 02/2018 dated 26.01.2018 was lodged against unidentified persons while samples drawn from each narcotics items were sent to the forensic laboratory which verified them as drugs. The laboratory report
Customs appellate Tribunal reserves judgment on PTCL reference
of seized vehicle found that LEA17-4259 Toyota car is registered in the name of one Adnan Hassan, a resident of Canal Bank, Lahore. On 01-3-2018, summon was issued to the owner of the vehicle
but he did not appear before the office of the Directorate of I&I. So it is clear that the contraband items and vehicle are liable to be confiscated under the relevant customs bylaws. The next hear-
ing will be executed on 17-042018 at 11:00am. If no reply was submitted in response to the show cause notice then case will be decided against the material available on record.
‘Punjab govt to fully facilitate telecommunication sector’
P
ISLAMABAD
CUSTOMS BULLETIN REPORT www.customsbulletin.com
unjab Finance Minister Dr. Ayesha Ghaus Pasha has said that the telecommunication service providers are development partners of the provincial government as well as an important source of sales tax. She said that some of the social sector facilities are the result of taxes collected from this sector and the Punjab government is
ready to provide every possible cooperation to telecommunication sector but timely provision of taxes is the responsibility of all service provider organizations and it is also a step towards maintaining good governance. Chairman of Punjab Revenue Authority Raheel Ahmed Siddiqui, Additional Secretary Finance Rana Obaid, Special Member Tax Abdul Rehman Warraich as well as representatives of different cellular companies attended the meeting. At the outset, Dr. Ayesha Ghaus
Pasha maintained that mobile telephone and internet services have become the integral part of daily life. She said that special remission given on sales tax of internet services has helped to improve the growth rate along with helping in business growth of telecommunication sector. She impressed upon the heads of telecommunication service providers to play their role as an important stakeholder instead of considering the tax as a burden and present feasible pro-
posals for enhancing the provincial resources. The CEO of Telenor Irfan Khan put light on impacts and possible remission of taxes imposed on telecommunication services and said that increase in investment by telecommunication service providers will be possible in case of receiving of equal taxes imposed on other services. The minister asked them to present their proposals in black and white and directed the Punjab Revenue Authority and Finance Depart-
ment to review the proposals put forth by the telecommunication service providers. These proposals should be presented before resource management committee so that policy could be constituted before budget. Earlier, Dr. Ayesha Ghaus Pasha presided over another meeting of resource mobilization committee and directed the tax collecting departments including the Punjab Revenue Authority to solve the problems of traders on priority basis.
3
www.customsbulletin.com
Court seeks charge sheet against suspects in vehicle smuggling case KARACHI: Customs Court Judge Syed Faiz Rasool Rashdi has directed investigation officer to complete investigations and submit a charge sheet against Shahzaib, claimant owner and Slaman Hussain, registered owner of Toyota Hilux Surf jeep bearing registration no: BD-6649, who were booked and absconders in a case of attempting to smuggle the above mentioned vehicle. During the hearing, investigation officer of Customs Collectorate of Preventive AntiSmuggling Organization NMB, Wharf, Karachi submit First Information Report (FIR) before the court and informed that a team of Customs Department intercepted Toyota Hilux Surf jeep bearing registration no: BD-6649 from vicinity of Mazar-e- Quaid Karachi.
Dg Valuation decides to revise VR No 878/2016 on May 14
Friday April 6, 2018
Karachi
adjudication-II retrieves Rs32.45m in response to final notices
KARACHI
CUSTOMS BULLETIN REPORT www.customsbulletin.com
he Directorate General Customs Valuation Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 878/2016 on May 14, 2018, it is learnt. Surriya Butt said the department is reviewing suggestions from various importers to set the new prices of different kind of blankets. She said that some valuations were issued in 2016 which 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 different kinds of blankets was requested.
T
ShC division bench disposes of petitions on RD KARACHI
CUSTOMS BULLETIN REPORT www.customsbulletin.com
he Sindh High Court has disposed of a number of petitions filed by importers of different items against imposition of regulatory duty. The division bench, comprising Justice Munib Akhtar and Justice Agha Faisal, heard petitions filed by DIGICOM Mobile, Continental Biscuits and others through Franklin Law Associates and observed that the bench has already passed a judgment which shall be followed by the respondents concerned. The bench as an interim relief ordered release of the consignments on payment of 50 per cent duty and taxes with Nazir of the court and 50 per cent with the department.
T
KARACHI
waQaR ahMED aNSaRI www.customsbulletin.com
T
he Customs Adjudication-II issued seven Rinal notices and recovered Rs32.45million in 27 days of March. Sources said that three more cases are in pipeline which will be settled in the end of this March. The Customs Adjudication-II served a Rinal notice on a defaulter company named M/s Hijazi Papers, and retrieved Rs5million from M/s Qadeer Motors. M/s Hijazi Papers was involved in tax evasion. The company imported different types of papers including roller machine paper, computer printer and photocopier paper A4 and A3. The consignment was cleared on December 9, 2017 by using the wrong PCT heading. The consignment was cleared through Sultan Qayyum. After a careful investigation, the Customs Adjudication-II issued a Rinal notice to the company on Thursday and cleared the outstanding amount of Rs6.58million. Sources said that another company M/s Qadeer Motors Karachi got cleared a consignment on December 2, 2017 and evaded tax amount of Rs4.23million. 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 12, 2018. After receiving the notice, the company deposited Rs4.23million in favor of the Customs Department on March 27. Source said that the Custom Adjudication II has received 16 more cases which will be investigated in the next month of April. Meanwhile, The Customs Adjudication-II served a final notice on a defaulter company named M/s 125 Autos, and recovered Rs5million from M/s Kashi Com-
The consignment was cleared through Sultan Qayyum. after a careful investigation, the Customs adjudication-II issued a final notice to the company and cleared the outstanding amount of Rs6.58million
PCa detects tax evasion by Rehman auto Parts
T
KARACHI
CUSTOMS BULLETIN REPORT www.customsbulletin.com
he Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 11.35 million allegedly by M/s Rehman Auto Parts and Accessories, it is learnt here. Sources told Customs Today that M/s Rehman Auto Parts and accessories imported a consignment of engines parts, new and used wiper motors and other
items and got the same cleared from the PICT Karachi vide GDs on November 16, 2017 by paying customs duty at 8 percent after claiming the beneRit of the SRO 568/2007. However, the subject items were correctly classiRiable under the PCT 2587.2407 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classiRication, the company evaded/short-paid Rs 11.35 million. The goods were cleared by Head Examiner Asad Ullah Khan Niazi.
Sources said that the importer violated the provisions of Section 14 (9) & (7A) of the Customs Act-1969, Section 12 read with Section 70 of the Sales Tax Act-1990 and Section 457 of Income Tax Ordinance 2001 punishable under clauses (254) and 178 of Section 547(6) of the Customs Act-1969, Section 78 of the Sales Tax Act-1990 and Section 25 & 89 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax.
puters 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 and cleared the outstanding amount of Rs4.52million.
Rupee depreciates by 90 paisas he Pakistani rupee depreciated against the US dollar in open market and remained unchanged in interbank. As per the local money market, the greenback gained 90 paisas in open market for buying at Rs116.65 and for selling at Rs116.85. The dollar remained unchanged in interbank for buying at Rs115.20 and for selling at Rs115.40.
T
4
www.customsbulletin.com
FIA arrests travel agents at Allama Iqbal Airport Friday April 6, 2018
Lahore
LAHORE: Federal Investigation Agency (FIA) Immigration staff arrested a passenger at the Allama Iqbal Airport on Monday for using fake documents. According to FIA spokesman, the passenger Akbar Ali, resident of Toba Tek Singh, was travelling on flight numbering TK715 and during immigration clearance visa stickers of Libya pasted on page 1214 and 17 were found fake. The passenger was offloaded and sent to FIA or Anti Human Tracking Cell (AHTC) Lahore for further action.
Customs appellate Customs Preventive foils Tribunal concludes bid to smuggle gold from aIIa arguments in five appeals LAHORE
LAHORE
SaJID NawaZ
www.customsbulletin.com
T
he Customs Appellate Tribunal, Single & Double Bench, heard 19 cases and arguments are completed in Rive appeals for Rinal order. The Division Bench-I, comprising Muhammad Shabbir Gujjar, Member judicial and Saud Imran, Member Technical, heard 15 appeals including Customs Lahore versus Bitument traders, Muhammad Hamza versus Customs Lahore, A H textile versus Directorate of Intelligence and Investigation Multan, Muhammad Javaid Saddique versus Customs Lahore, Fatima Fertilizers versus Post Clearance Audit Lahore (PCA)Lahore, Jasim Siddique Directorate of Intelligence and Investigation Lahore. Furthermore, Dastigir
Customs airport issues new duty roaster of employees ollectorate of Customs Preventive issued a new roaster for employees who are performing their duties at Allama Iqbal International Airport. According to the new roaster which was issued by Additional Collector Moazzam Raza, atleast one hundred and fifty employees will perform their duties in different shifts. The employees will be posted at different locations which includes Air Freight Unit, Traffic, Cargo sections. Sources told that Collector Customs Preventive directed all employees to work honestly and dedicatedly while performing their duties. Sources told that all employees are directed to relinquish their current charge and report for their new place of duty. It is necessary to mention here that Collector Customs Collectorate of Preventive Faiz Ahmad adopted a comprehensive strategy to enhance the performance of employees specially those who are working in field formations. –CB Report
C
versus Directorate of Intelligence and Investigation Lahore, Abeer International versus Customs Lahore, Dany Technologies versus Directorate of Intelligence and Investigation Faisalabad, Danish Shehzad versus Directorate of Intelligence and Investigation Faisalabad, Muhammad Irshad versus Customs Multan, Fateh Muhammad versus Directorate Multan Unit DG Khan, Jam Amjed Boota versus Customs Multan, Shahzad Textile versus Directorate of Intelligence and Investigation Lahore and Arshed Fareed versus Directorate of Intelligence and Investigation Lahore. The Bench-I, Member Technical Saud Imran, heard four appeals including Ahmed Electoronic Traders versus Customs Lahore, Raja Muhammad Mushtaq versus Customs Lahore, Ghulam Shabbir Ahmed versus Customs Multan and Muhammad Yousaf & others versus Customs Sambrial.
M haYaT
www.customsbulletin.com
C
ollectorate of Customs Preventive team deputed at Allama Iqbal International Airport foiled a bid to smuggle huge quantity of non duty paid gold. Sources told Customs Today, that after receiving credible information customs team enhanced checking of passengers at International Departure and Arrival Lounges of Allama Iqbal International Airport. During checking of passengers who were going to depart for China through Shaheen Airways flight no: 892, the team intercepted a passenger who was later identified as Anwar Khan and recovered 300 grams of fine quality gold. Sources told that the passenger tactfully hidden this gold around his wrist to hoodwink customs teams. The Cus-
Reference filed in illegal award Railway land: NaB
N
ational Accountability Bureau (NAB) has Riled a reference against ofRicers/ofRicials in Accountability Court Islamabad for their alleged involvement in illegal award of lease of Railway Golf Club, Lahore. The reference has been Riled against accused former Secretary/Chairman Railways/former Federal Minister for Communication and Railways, Lt Gen (Retd) Javed Ashraf Qazi, former Secretary/Chairman Railways Board, Lt Gen (Retd) Saeed-uz-Zafar, former General Man-
ager (GM) (M&S) Pakistan Railways, Maj Gen (Retd) Hamid Hassan Butt, former GM (Operations) Pakistan Railways, Iqbal Samad Khan, former Member Finance, Pakistan Railways, Khurshid Ahmed Khan, Director Directorate of Property & Land Pakistan Railways, Brig (Retd) Akhtar Ali Baig, former Divisional Superintendent, Pakistan Railways, Abdul Ghaffar and sponsors of Royal Palm Golf Club, Ramzan Sheikh and Pervaiz Qureshi, and Rive other ofRicers and ofRicials. –CB Report
toms team asked the passenger to provide any relevant legal documents regarding possession of the gold but he remained failed to provide any legal documents. After his failure Customs team seized the entire gold and after registering a case against the owner of the gold started further investigations. It is necessary to mention here that Customs Preventive Collector Faiz
T
Ahmad directed all anti smuggling squads to adopt zero tolerance policy towards smuggling. Collector also directed to enhance checking specially at airports and other important locations of the jurisdiction. Due to effective strategy adopted by Collectorate of Customs Preventive there is marginable decrease is being witnessed in smuggling attempts.
3g/4g users cross 51 million mark he number of 3G and 4G users in the country has reached 51.248 million by end of February 2018, showing a reasonable growth with each passing month. Statistics issued by Pakistan Telecommunication Authority (PTA) have showed that number of mobile phone users reached 147.204 million by February 2018, as compared to 145.99 million by end of January 2018 which registered an increase of 1.214 million during period under review. Jazz’s total count for 3G users stood at 14.88 million by February 2018, as
compared to 14.54 million by January 2018, registering an increase of 0.34 million. Jazz 4G user numbers jumped from 2,238,018 by January 2018 to 2,590,095 by February 2018. Zong 3G subscribers decreased to 8.893 million by February 2018, down from 9.089 million in January 2018, while number of 4G users jumped from 5,0724,43 by January end to 5,830,231 by February 2018. The number of 3G users of Telenor increased from 10.756 million in January 2018 to 10.878 million by February 2018. –CB Report
fTO seeks details of 0.5 million tax refund appeal
F
LAHORE
CUSTOMS BULLETIN REPORT www.customsbulletin.com
ederal Tax Ombudsman (FTO) Advisor Mian Munawar Ghafoor has heard Rs 0.5 million income tax refund appeal and sought the details from the department. The case was Riled by proprietors of M/s Haji Nazakat Ali & Com-
pany against Zone-III of Regional Tax OfRice (RTO-II) Lahore. During the proceedings of the case, the counsel for the appellant argued that the RTO-II had failed to release sales tax refund to the appellant since the last two years. He said the RTO-II collected excessive taxes from the company during the last two years. The petitioner approached the ofRicials concerned
several times for the release of refunds, but the RTO ofRicials failed to clear refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking intervention in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims on priority basis. The counsel further said that delay in release of refunds put burden on
taxpayers, adding that the RTO-II should make audit of the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO-II argued that the appellant has not submitted all record to the ofRice for claiming refunds. If appellant provides the accurate record, the RTO-II will release refunds after a proper assessment, he added.
www.customsbulletin.com
ADVERTISEMENT
5
6
www.customsbulletin.com
PESHAWAR
NaDIR khaN
www.customstoday.com
T
he Model Custom Collectorate Peshawar generated Rs1535million from various taxes against the previous year’s March’s Rs1109million surpassing the previous target with a difference of 37.96 percent. Under the head of custom duty, the Custom House Peshawar collected Rs635.22million against Rs441.98million of March 2017 with a difference in rupees recorded Rs193.24million while the difference in percentage was noticed 43.11 percent. Under the head of Sale Tax on Import, the Custom House received Rs399.22million in
March 2018 against Rs241.86million in March 2017 with a difference of Rs157.96million while the difference in percentage was 65.38 percent. Under the head of Sales Tax on Federal Excise Duty on palm oil, the collectorate earned Rs139.08million against Rs18.90million of March 2017. The difference in rupees was recorded minus 41. 81 while the difference in percentage was minus Rs23.13million. Under the head of Sales Tax Value Addition on commercial importers, the collectorate got Rs62.62million in March 2018 against Rs32.28million in March 2017. The
difference in rupees was recorded Rs30.34million while the difference in percentage was recorded 93.99 percent. Under the head of Federal Excise Duty on import, the house collected Rs22.16million against Rs18million in March 2017. The difference in percentage was recorded Rs3.66million while the difference in percentage was 19.78 percent. Similarly under the head of withholding tax, the collectorate collected Rs276.14million against Rs194.40million of March 2017 while the difference in rupees is Rs81.74million while the difference in percentage was 42.05 percent. The overall performance of the house was satisfactory as it surpassed all the target except the sales tax levied on palm oil which was recorded in negative.
war Pesha e s u o h nst stoms n agai u o i C l l e i h m T 17 35.22 rch 20 ed Rs6 t c e l l of Ma n co o i l l s .98mi rupee Rs441 nce in e r e e the ff i d n whil o i l l with a i s 3.24m ge wa d Rs19 e d r o rcenta c e p re n i nce rcent differe .11 pe 3 4 d e notic
www.customsbulletin.com
Friday, April 6, 2018
7
8
www.customsbulletin.com
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
Prospects of Pak-Indian trade
S
ince the Bharatiya Janata Party took over the rein of the government in New Delhi, the relations between Pakistan and India began to worsen with every passing day. The trade could not be picked up during the last four and half years and breach of the peace agreement shattered all hopes to maintain peace and tranquility on the Line of Control. Hundreds of people have been killed or wounded in the cross border firing and fiery statements from the Indian leaders are adding insult to injury, dashing down any hope to establish close business and trade relations between the two countries. The Indian leadership has bulldozed every Pakistani effort to revive the forums like the SAARC and the Indian media is fueling antiPakistan sentiments among its population. In this volatile situation, one can see the statement of the Indian High Commissioner strange as well as a blow of fresh air at the same time that the two countries should improve bilateral trade. He stressed the need for removing the non-tariff barriers which were the main hurdles in the improvement of trade relations between Pakistan and India. He emphasized that both countries should take required steps to avail business opportunities which could expand commerce by six times. At present, the volume of indirect trade between Pakistan and India is over $5 billion which can be brought to as high as $30 billion if non-tariff barriers are removed, visa process is liberalised and mutual relations are normalized. There is dire need to remove the involvement of third country in the bilateral trade and it could only be possible if the Indian government sincerely wants to resolve chronic issues. As a matter of fact, trust deficit is the main hurdle in the improvement of relations. None of the sides is ready to trust the other and peace is the first casualty at the end. Pakistan has offered a hand of friendship on various occasions which has been blatantly rejected by the extremists’ government of India. There is no hope for improving business and trade relations until trust is restored. The Indian leadership will have to shun its antiPakistan rhetoric on the basis of which it came to power. The future of sub-continent lies in peace and not on war and violence and this should be understood to the officials sitting in New Delhi.
Need for another bailout package A
LAHORE
DR afTaB afZaL
www.customstoday.com
ccording to the media reports, the government has launched a ‘bail me out’ offensive to avoid a new bailout package from the International Monetary Fund. This is the classic example of financial failure as the government had earlier depreciated the Pakistani rupee to prop up the falling exports and minimize the trade deficit. But it simply did not work and now it is looking toward Saudi Arabia, China and other friendly countries for loans and grants to continue its business as usual in the operational mode. The government has already
started feeling the heat of the rupee’s meltdown and seeks at least $8 billion to get a breathing space. It is naïve to believe that the friendly countries are prepared to lend their extra money to Pakistan without working out any modalities less tough than the IMF. Another failure is the signing of free trade agreements with various countries without deeply understanding the needs and requirements of the nation. As a result, the balance of trade always remained in favour of other countries. Allowing the trade in dollar also created additional troubles for the national economy and trade deficit even with Beijing
reached $12.5 billion during the last fiscal year. Economists believe the government would make maximum effort to avoid any bailout package from the IMF. Instead, it will opt for short term commercial borrowings of $10 billion from various creditors as well as from the Chinese banks. Reports suggest the tapping of Eurobond is also on the table but the government is weighing options to take a decision after observing trends in the international bond market. The Prime Minister’s Adviser on Finance has also ruled out any possibility of requesting the IMF for a new bailout package in spring meetings of Breton Wood Institutions scheduled to be held
next month. The government has already raised $1.77 billion through short term commercial borrowings in first eight months of the current fiscal year. Keeping in view the current state of financial affairs, the future of the economy appears bleak and disappointing. However, the only ray of hope is China Pakistan Economic Corridor and the proposed industrial zones alongside the project. Pakistan and China are trusted friends and are cooperating in various fields of economy. The success of cooperation is in the interest of both countries, especially for Pakistan. Otherwise, nothing can stop Pakistan from knocking the door of the IMF.
9
www.customsbulletin.com
Inflation slows down to 3.2pc in March ISLAMABAD: Inflation has slowed down to 3.2 percent during March despite continuous increase in petroleum products prices. Inflation measured by Consumer Price Index (CPI) has recorded at 3.2 percent during March over a year ago, according to Pakistan Bureau of Statistics (PBS). It was the third consecutive month when the CPI pace slowed down after the State Bank of Pakistan increased its key policy rate by 25 basis points two months ago. However, the SBP in its recent monetary policy kept the interest rate unchanged at 6 percent. The SBP has noted that sticky core inflation along with a moderate outlook of food prices amid abundant grain stocks and the recent increase in policy rate are expected to contain average inflation well below the fiscal year (FY18)’s target of 6 percent and close to it for FY19.
fBR withdraws zero-rating given to 22 textile units KARACHI
CUSTOMS BULLETIN REPORT www.customsbulletin.com
ederal Board of Revenue (FBR) has withdrawn sales tax zero rated facility on supply of electricity allowed to 22 textile units with immediate effect. In a Sales Tax General Order (STGO), the FBR said that it had withdrawn the sales tax zero rated facility on supply of electricity given to 22 textile units under SRO 1125(I)/2011. The facility has been withdrawn on recommendations of Regional Tax Office (RTO) Faisalabad on identification of misuse. The following textile units have been denied sales tax zero rated facility: Ttiasat Hussain Weaving Factory Tahir Weaving Factory Amjad Ali Weaving Factory Tarif Javed Weaving Factory Muhamad Anwar Weaving Factory AlKhairia Weaving Muhammad Hamid Weaving Factory M.Z.A. Weaving Factory Muhammad Wasim Weaving Fac-
F
Friday April 6, 2018
National
Dg Valuation revises customs values of different types of spun yarn T
KARACHI
waQaR ahMED aNSaRI www.customsbulletin.com
he Directorate General of Customs Valuation has revised the customs values of polyester spun yarn, viscose spun yarn, acrylic spun yarn and blends through Valuation Ruling No: 1276/2018 under Section 25A of the Customs Act-1969. Earlier the Customs values of polyester spun yarn, viscose spun yarn, acrylic spun yarn and blends thereof were determined vide Valuation Rulin2 No.1161 on May 12, 2017. All Pakistan Textile Mills Association requested to revise the Valuation Ruling No.1161 dated 12.05.2017 thereof as the prices of raw material i.e. polyester staple fiber, viscose staple fiber and acrylic staple fiber has gone up in the international markets. Perusal of clearance data of import of subject items also reflected toword trend of prices. Since the existing valuation ruling is value based and the formulae have been determined with the participation of stakeholders
and try experts, therefore, fresh values as per the formulae were obtained for calculation and mined of values of subject goods. Meetings with stakeholders were
held on 22.02.2018 and 27.03.2018. Representatives of M/s All Pakistan Textile Mills Association (APTMA) and M/s Pakistan Yarn Merchants Association
(PYMA) participated in the subject meetings. Representative of both associations up-word price trend id raw materials in the international markets.
SBP maintains key policy rate at 6 percent KARACHI
tory S.S. Weaving M. Abbas Weaving Factory Abdul Ghafoor Weaving Hoor Fatima Zahid Hussain Weaving Factory Khaliq Weaving Factory Zainab Weaving Factory Malik Iftikhar Ahmad Weaving Factory Ali Processing Works AH Processing Muhammad Boota Weaving Factory Hadi Doubling Superior Gloves The FBR directed the chief commissioner of RTO Faisalabad to submit report in respect of action taken in recovery made for misuse of the facility. It further directed M/s. Faisalabad Electric Supply Company to start charging normal sales tax on the supply of electricity with immediate effect.
S
CUSTOMS BULLETIN REPORT www.customsbulletin.com
tate Bank of Pakistan (SBP) has maintained key policy rate unchanged at 6 percent on high prospects of achieving 11-year higher grate during the current Riscal year. “The latest information since MPC’s meeting in January 2018 reveals that the prospects of achieving an eleven-year high growth rate remain strong with average headline inRlation within comfortable bounds for FY18 and FY19,” the SBP said in a statement to announce monetary policy. It said that the high growth and low inRlation outcome has been accompanied by a higher current account deRicit. Along with a high Riscal deRicit, this could affect mediumterm stability of the economy.
However, recent adjustments stemming from greater exchange rate Rlexibility, active monetary management as well as visible improvements in exports and remittances are expected to bear fruit for medium-term in terms of sustaining the growth momentum without posing a risk to stability, the SBP added. Consumer Price Index (CPI) based inRlation is remained moderate during January-February 2017/2017, averaging 4.1 percent mainly, because of subdued food prices and lower than anticipated increase in house rents. The latter lowered core inRlationi.e. non-food-non-energy inRlation, from 5.5 percent (YoY) in December of the current Riscal year to 5.2 percent during January and February FY18. Going forward, a sticky core inRlation along with a moderate outlook of food prices amid abun-
dant grain stocks and the recent increase in policy rate are expected to contain average inRlation well below the FY18 target of 6.0 percent and close to it for FY19. This assessment takes into account the lagged impact of exchange rate Rlexibility and its second round effects (speciRically through adjustments in fuel prices), demand pressures, and volatile global oil prices. The real sector is progressing well and growth remains on track. Agriculture sector, despite some shortfall in cotton production, is projected to post positive growth for the second consecutive year. Industrial sector has managed demand pressures through improved utilization of existing capacity and continuing additions in installed capacity. Consequently, despite a late start of sugarcane crushing, Large Scale Manufacturing (LSM)
posted a growth of 6.3 percent during Jul-Jan FY18 as compared to 3.6 percent during the corresponding period in FY17. Due to transition of fixed investment into additional productive capacity and with favorable trend in global demand, LSM growth is expected to maintain its current momentum in the remaining months of FY18 as well. On the monetary front, a relative improvement in financial intermediation, coming from sustained growth of private sector credit (PSC) is leading broad money (M2) growth. Despite a small moderation in fixed investment, late start of sugarcane crushing season and lower production of fertilizer amid excess stocks, cumulative PSC flows reached PKR 354 billion during Jul-Feb FY18 as compared to PKR 338 billion during same period in FY17.
10
www.customsbulletin.com
Member Qaiser Iqbal’s performance allowance restored Friday April 6, 2018
National Imran Yousef assumes charge as Second Secretary
ISLAMABAD: Performance Allowance of Qaiser Iqbal, A BS-21 officer of Inland Revenue Service, has been restored. The performance allowance of the officer, presently posted as Member at Federal Board of Revenue (HQ), Islamabad.Meanwhile, Hafiz Muhammad Qasim Haroon, a BS-18 officer of Inland Revenue Service, has assumed charge as Deputy Commissioner-IR in Gujranwala.
ShC seeks comments on petition filed by aI Int’l for restoration of ST registration
ISLAMABAD
CUSTOMS BULLETIN REPORT www.customsbulletin.com
KARACHI
T
CUSTOMS BULLETIN REPORT www.customsbulletin.com
mran Yousef, an Inland Revenue Service officer of BS-18, has assumed charge as Second Secretary on acting charge basis. The officer, in pursuance of Board’s Notification No.0566-IR-I/2018 dated 09.03.2018, relinquished the charge of the post of Deputy Director, I&I-IR Islamabad and assumed the charge of the post of Second Secretary, (IR-Operation Wing) FBR (HQ), Islamabad. Meanwhile, Federal Board of Revenue (FBR) has transferred and posted two Pakistan Customs Service officers of BS-18 with immediate effect until further orders. Muhammad Tayyab has been transferred from the post of Deputy Collector, MCC Port Muhammad Bin Qasim, Karachi and posted as Deputy Director, Directorate of Transit Trade, Peshawar. Muhammad Ilyas has been transferred from the post of Deputy Director, Directorate of Internal Audit (Customs).
I
Customs Preventive to auction 23 vehicles on april odel Customs Collectorate (Preventive) Customs has announced public auction of vehicles to be held on April, 2018 at State Warehouse-III behind KPT Fire Brigade Station Karachi. The above said Customs Preventive will offer auction of following vehicles: Toyota Lexus Vendum (Used) 3000CC, Model 1996, Reg. No. LEA-06-448, Chassis No. MCV20-0033304/IMZ-FE Mitsubishi pajero Jeep (Used) GS 2000 Model 2004 Reg. V46-4034791 Honda Accord car – Model – 2004, Chassis No. CL7310078 Lexus Car – Reg No. UC-868-Model2006-3450cc Chassis No. JTHBG963905034702 Mercedes Benz Car-Model-2001-2000cc. –CB Report
M
he Sindh High Court (SHC) on Thursday issued notices to the Customs Department and deputy attorney general on a constitutional petition Riled by M/s AI International, seeking restoration of its sales tax registration number blocked by commissioner Inland Revenue Unit-05, Zone-VI, Corporate Regional Tax OfRice Karachi due the alleged non-compliance of section 73 of Sales Tax Act, 1990. During hearing of the petition, a two-member bench also directed them to Rile their respective para wise comments on the next date of hearing. During the hearing, counsel for the petitioner argued that petitioner is registered as importer and
exporter of textile goods and doing lawful business and has never been involved in any criminal case. The
counsel submitted that on January 1, 2018, a show cause notice under section 21 (2) of Sales Tax Act, 1990
read with rule 12 of chapter-1 of Sales Tax Rules 2006 was issued to the petitioner by the Corporate Regional Tax OfRice whereby the sales tax registration of the petitioner was suspended merely on the ground of non-compliance of section 73 of Sales Tax Act, 1990. He argued that the petitioner had submitted a proper reply which was not considered by the respondents. Citing Secretary Revenue Division and commissioner Inland Revenue Unit-05, Zone-VI, Corporate Regional Tax Office Karachi as respondents, petitioner pleaded the court to declare the act of the respondents as illegal, mala fide and arbitrary. Counsel further pleaded the court to pass the interim order and direct them to restore its sales tax registration number immediately.
faisalabad Customs seizes car on actionable tip-off loaded with Q Mobiles T
FAISALABAD
NaEEM ShEIkh
www.customsbulletin.com
he Customs Anti-Smuggling Organization (ASO) Faisalabad has conRiscated imported smuggling mobiles worth Rs4.2million involving duties and taxes of Rs845000 during an action. Sources told Custom Today that ASO Assistant Collector Shah Samad Hamadani received a tipoff from the police regarding the smuggling attempt. The ASO team and police staff raided Kashmir Bridge, Canal Road Faisalabad, and intercepted a suspicious white coloured vehicle Honda Civic car bearing registration No: CG-212 which was going from Sahianwala Motorway Interchange to Faisalabad city through Canal Road. The ASO staff including Sub-Inspectors M Ibrahim and M Tasawar Ramzan set up a picket near Kashmir
Bridge. A vehicle was seen coming to the city which was stopped
by the police party and found two accused named Rahat Shah and
Pervaiz, residents of Qaidabad Peshawar, sitting in the car.
11
www.customsbulletin.com
SHC to decide tiles import cases today KARACHI: A Sindh High Court’s customs appellate bench would decide the cases of tile import on April 5 (today). The bench, comprising Justice Munib Akhtar and Justice Agha Faisal, hearing of a number of petitions filed by some tiles importers. The petitioners were seeking exemption from custom duty, taxes etc under SRO 497 of 2009 amended in 2017 and maintains that government can impose duty and taxes up to 37.5 per cent but custom officials are imposing duty and taxes between 50 per cent to 100 per cent.
Tax evasion case: absconder suspect approaches court for pre-arrest bail KARACHI
CUSTOMS BULLETIN REPORT www.customsbulletin.com
he Customs Court judge Syed Faiz Rasool Rashdi issued notices to the customs department and special prosecutor for customs department for April , 2018 on a pre-arrest bail petition filed by absconder accused Ghulam Qadir Ali son of Afzal, who was booked in a case of fraudulent clearance of restricted imported goods fireworks in the garb of raw material for processing at Karachi Export Processing Zone (KEPZ), Karachi. During the hearing, above mentioned accused appeared before the court along with counsel who moved petition for pre-arrest bail and argued that applicant was not mentioned in the first information report and was subsequently included in the interim charge sheet at para 28 without es-
T
tablishing any nexus with the commission of the offence as alleged in the interim challan. He further argued that his counsel has been falsely implicated in the present case although it is a matter of record that the present applicant is neither the importer nor a clearing agent holding license under section 209 of the Customs Act, 1969. He submitted that no evidence has been brought on record to connect the applicant with the commission of offence as no evidence has been brought on record that the applicant is beneficiary of the alleged evaded amount by the importer, therefore, court may granted him pre-arrest bail and restrain the customs department for his arrest. According to the prosecution, above mentioned suspect and others are involved in a case of fraudulent clearance of restricted imported goods fireworks in the garb of raw material for processing at Karachi Export Processing Zone (KEPZ), Karachi.
National
Tribunal remands back appeal in Chinese manufactured textile fabrics case
ShC directs Customs to issue delay detention certificate to awais Traders KARACHI
CUSTOMS BULLETIN REPORT www.customsbulletin.com
earing a constitutional petition, the Sindh High Court (SHC) has directed the Customs Department to issue delay detention certification to M/s Awais Traders, challenging regularity duty on ladies hand purse and mini clutch imported from China. While hearing of the petition, a two-member bench, headed by Justice Munib Akhtar, also issued notices to the Customs Department and deputy attorney general, directing them to file their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner stated that it imported three consignments of ladies hand purses and mini clutches from China on October 16, 2017, but is aggrieved and dissatisfied with the unlawful imposition of regularity duty on the said goods. He further argued that customs department has no power to impose such regularity duty on the items, therefore, imposition of regularity duty is illegal, mala fide and arbitrary. Citing chairman Federal Board of Revenue, Secretary Revenue Division, Collector of Customs Collectorate of Customs Appraisement West, Collector of Customs Collectorate of Appraisement East as respondents, counsel pleaded the court.
H
T
LAHORE
CUSTOMS BULLETIN REPORT www.customsbulletin.com
he Customs Appellate Tribunal has remanded back an appeal in the imported Chinese manufactured textile fabrics. The same appeal was Riled by M/s Mustafa Enterprises against the Collector of Customs (Appraisement) and others. Muhammad Shabbir Gujjar, Member Judicial, heard the appeal and examined the record produced by the parties. The tribunal has passed the Judgment with remarks that the same appeal is remanded back to the adjudication for fresh order after hearing the parties. The appellant imported a consignment of textile fabrics of China origin from UAE. During the searching of consignment at Pram Nagar Dry Port Lahore, it was observed that the shipment has imported under the wrong GD and violated bylaws. After a complete examination of goods, the adjudication proceedings were culminated and the Order-in-Original was passed against the importer. Being aggrieved from the order, the same order was challenged before the Customs Appel-
Friday April 6, 2018
late Tribunal on the grounds that the order was passed without applying a judicious mind and consideration of facts. On the other side, the respondent denied all the allegations. After hearing arguments
from both sides, the Customs Appellate Tribunal passed the judgment with the order that the relevant judicial forum hear the parties again and pass the fresh speaking order as per law.
Inauguration of new Islamabad Int’l airport on 20th of april
T
ISLAMABAD
CUSTOMS BULLETIN REPORT www.customsbulletin.com
he New Islamabad International airport will be inaugurate on 20th of April while the building of Air Freight Unit (AFU) and Pakistan Revenue Automation (Pvt) Ltd (PRAL) will be functional in the Rirst week of April 2018. According to details explained by sources of Model Customs Collectorate (MCC) Islamabad that 98% work has been completed. “Complete pre-scanning of arriving baggage and Baggage Handling System (BHS) at departures shall empower the Customs OfRicers to run their
function more efRiciently and, at the same time, it shall cause the passengers less obstruction, the sources noted. Sources told that customs high ofRicials of the MCC Islamabad visits the New Islamabad International Airport (NIIA) on daily bases so that they can keenly observe the new developments there. ZulRiqar Ali Chaudhry, Collector MCC Islamabad, visited NIIA during last week of February 2018 to gauge the operational readiness of all the facilities falling under customs controls and enforcement. The visit was planned to take up all the pending matters then-and-there with the Civil Aviation Authority and ener-
gize efforts in the wake of the recent deadline set for inauguration of the airport. During his visit, the Collector Customs was briefed on the status of different airport facili-
ties and systems. He also examined facilities at Passenger Terminal Building and Customs Cargo Complex. During the visit, Collector Customs also lauded the pace of work at the Passenger Terminal Building and asked for the immediate provision of glassrooms inside the International Arrivals and Departures for round-the-clock surveillance of Rlights as communicated earlier by the Customs. Moreover, allocation of one additional room at the International Departures was also discussed by the Collector as departure shift is usually larger because of including drug cell and rummaging squad members.
12
www.customsbulletin.com
Electricals Retailing Netherlands Market Analysis 2018
World Customs
AMSTERDAM: Market Shares, Summary & Forecasts to 2021 provides data for historic and forecast retail sales, and also includes information on the business environment and country risk related to the Netherlands retail environment. In addition, it analyzes the key consumer trends influencing Netherland electrical retail market.
Friday April 6, 2018
China busts smugglers using drones to transport mobiles
Philippines rights groups with drug lords smear
P
MANILA
CUSTOMS BULLETIN REPORT www.customsbulletin.com
BEIJING
CUSTOMS BULLETIN REPORT www.customsbulletin.com
C
ustoms ofRicers in southern China’s technology hub Shenzhen busted a group of criminals using drones to smuggle 500 million yuan ($79.8 million) worth of smartphones from Hong Kong to Shenzhen, the ofRicial Legal. Authorities arrested 26 suspects who used drones to Rly two 200-meter (660-feet) cables between Hong Kong and the mainland to transport refurbished iPhones with a total value of 500 million yuan, the paper said in a report on the crackdown by Shenzhen and Hong Kong customs. “It’s the Rirst case found in China that drones were being used in cross-border smuggling crimes,” the Legal Daily reported, citing a news conference held by Shenzhen customs on Thursday. smugglers usually operated after
Belgian court annuls online gaming VaT elgium’s Constitutional Court has annulled legislation which extended value-added tax to the supply of online gaming and gambling services to customers in Belgium. The landmark decision was issued in response to a legal challenge to the legislative change brought by Swedish-listed online gambling group Kindred (formerly Unibet). Legislation to remove the broad-based VAT exemption on the gamblingsector in Belgium entered into force on August 1, 2016. As a result of the change, all gambling and games of chance that take place online are subject to VAT at the standard rate of 21 percent. However, lotteries and land-based gambling remained VAT-exempt. Kindred put forward arguments that the decision was incompatible with both Belgium’s gaming laws and value-added tax law, as it discriminated against online operators and in favor of lotteries and land-based casinos. –CB Report
B
midnight and only needed seconds to transport small bags holding more than 10 iPhones using the drones, the report quoted customs as saying. The gang could smuggle as many as 15,000 phones across the border in one night, it said. Regulating the use of drones has become an important
task for China, the world’s largest manufacturer of consumer drones. China published strict rules last year to tackle incidents of drones straying into aircraft Rlight paths, including requiring owners of civilian drones to register craft up to a certain weight under their real names.
China steel industry adds voice to steel import concerns
C
hina’s steel industry urged Beijing to ensure any increase in steel products seeking a market in the wake of U.S. tariffs did not affect its domestic industry, following the announcement of a European Union import probe. The comments by the China Iron & Steel Association (CISA) came after the EU initiated a probe on Monday into imported steel in response to the U.S. tariffs, worried that steel manufacturers subject to the
tariffs may divert their products to Europe. The U.S. tariffs, of 25 percent on steel and 10 percent on aluminum, came into force. CISA said the EU investigation would complicate the response to the U.S. tariffs and add uncertainty to the global steel market. “We appealed to the Chinese government to take relevant measures if necessary and strictly prevent the surge of imports from affecting the Chinese market,” it added. –CB Report
hilippine presidential spokesman Harry Roque alleged on Monday that “some human rights groups have become unwitting tools of drug lords to hinder the strides made by the administration.” That echoed recent comments by Foreign Secretary Alan Cayetano equating efforts of some unnamed human rights organizations to stop President Rodrigo Duterte’s murderous “war on drugs” with “being used by drug lords.” Cayetano said that human rights organizations demanding accountability for the carnage of the anti-drug campaign that has killed more than 12,000 people since Duterte took ofRice in June 2016 were doing so “for politics, for business.” He criticized rights groups for “pushing an advocacy, an ideology” not based on “impartial and independent investigation.” Such public statements are just the latest salvo in the government
P
campaign of denial and distraction to dodge growing international outrage against Duterte’s “war on drugs.” But these allegations are more than just gratuitous slurs aimed at undermining the integrity of already beleaguered Philippine human rights activists pushing back against the Duterte government’s systematic attack on rule of law and its instigation and incitement of possible crimes against humanity. Publicly linking human rights groups with “drug lords” constitutes a sinister veiled threat in a country in which government-compiled “watch lists” of suspected drug users and drug dealers have been linked to many of the “drug war’s” thousands of victims. This is a familiar government tactic. Earlier this month the government put at grave risk more than 600 people – among them a United Nations human rights expert and dozens of leftist activists – by labeling them as members of the Communist Party of the Philippines (CPP) and its armed wing, the New People’s Army (NPA).
Philippine coffee industry gets boost
hilippine coffee industry is expected to get a big boost after Rive government agencies vowed to collaborate in pushing the implementation of the country’s coffee roadmap. During the Third Philippine Coffee Conference held in Baguio City on Tuesday, the Department of Agriculture (DA), Department of Environment and Natural Resources, Department of Agrarian Reform, Department of Trade and Industry, and the Technical Education and Skills Development Authority agreed to cooperate in boosting the country’s coffee industry by implementing the commodity’s roadmap. In her mes-
sage for the conference, Sen. Cynthia Villar, chairman of the Senate Committee on Agriculture, made reference to the International Coffee Organization and the Philippine Statistics Authority (PSA) that revealed Philippine coffee production has been decreasing by 3.9 percent per year over the past decade. With this development, Villar urged farmers to adopt “inter-cropping coffee with coconut, establish coffee nurseries, and put-up farm schools supported by TESDA and the Agricultural Training Institute [ATI] of the DA to have a better income stream and to get out of poverty.”–CB Report
Russia to double technical fibres production by 2020
T
MOSCOW
CUSTOMS BULLETIN REPORT www.customsbulletin.com
he Russian Ministry of Industry and Trade has announced plans to double the country’s technical Ribres production by 2020. To implement these plans, Russia will expand the use of its large reserves of oil and other resources, in-
cluding timber and other raw materials for the production of synthetics. Currently, the domestic production of technical Ribres can meet only 30% of Russia’s annual demand, however, as part of the government plans, this might change. Prior to 2014, the dependence on imports in Russia varied in the range of 80-90%. However, the beginning of the Rinancial crisis in Rus-
sia in 2014, ruble has made further imports of technical textiles unproRitable. As a result, many importers began to consider the prospects of localising the production. According to the Vice-President of the Russian Union of Chemists Sergei Golubkov, currently, chemical industry accounts for about 1.8% in the Russian GDP, which is signiRicantly lower than the
average rate of 10-14% for developed countries. Golubkov also said that reaching the EU levels would contribute to the growth of the Russian technical textiles industry. Denis Mantrov, the spokesman of the Russian Ministry of Industry and Trade, also noted that low taxes and customs duties, as well as the proximity of Russia to both European and Asian markets.
13
www.customsbulletin.com
Brazilian paper and pulp industry over view BRASIL: Brazil primarily started in the 1950s. The industry was kickstarted by the BNDES (the development bank of Brazil). Silviculture was one of the five “priority areas” for investment and development for the Brazilian government in the late 1950s which was demonstrated through several eucalyptus pulp projects. The industry started with firm regulatory support and was further strengthened by a tax reform in 1966 that permitted investments in forest plantations as tax deductible. The tax reform led to broad investments in Eucalyptus and pine trees resulting in an expansion of forest base from 500,000 hectares in 1965 to 4,500,000 hectares in 1985.
Uk export growth falls behind EU in first quarter of 2018 K export growth has fallen this quarter as Spain and Germany take the lead, according to the latest European Export Index by accountants and business advisers BDO LLP. This is causing overseas buyers to turn to alternative markets, and this trend appears set to continue. BDO’s Export Inflation Index – which indicates the rate of year-on-year growth in export prices – decreased in all European countries except the UK in the first quarter of this year. The UK index rose to 104.6 from 98.9. Despite the efforts of the European Central Bank, Eurozone inflation has been falling since November. While the UK slips behind – since Q2 of 2017, its export growth has slowed dramatically from 108.1 to 99.1 – the report reveals European export growth is set to accelerate in 2018. BDO’s Export
U
Ports & Shipping
Friday April 6, 2018
Turkish exports up 9.8 percent in first 2 months of 2018
LIQaL to build LNg refuelling station in Belgium
ANKARA
he total concept from design, production and realisation onsite, up to the maintenance and 24/7 service was the deciding factor in LIQAL being awarded the contract. With the arrival of its own LNG refuelling station, Remitrans is continuing to build on reducing carbon dioxide (CO2) emissions in the transport sector.Business Development Manager at LIQAL, added, “We are sure that LNG is the alternative for diesel in heavy duty and long haul transportation. Now that there are various truck brands available and more and more transport companies decide to switch to clean and affordable LNG, the demand for refuelling stations for this alternative fuel will also increase. Remitrans has selected our recently introduced prefab refuelling station, whereby the time to market can be reduced by a few months. Great for the turnaround time of the project and for the wallet of our customers. –CB Report
T
CUSTOMS BULLETIN REPORT www.customsbulletin.com
T
urkish exports in the first two months of 2018 rose 9.8 percent year-on-year to reach $25.6 billion, the Turkish Statistical Institute (TurkStat) announced. The country’s foreign trade volume totaled $66.1 billion between January and February this year, marking a 20 percent annual increase, according to provisional data provided by TurkStat and the Ministry of Customs and Trade. Turkish imports climbed 28.8 percent to $40.5 billion, amounting to a foreign trade deficit of $14.8 billion over the same period. The proportion of imports covered by exports was 63.3 percent during the January-February period, while it was 74.3 percent during the same period of 2017. TurkStat showed that Turkey’s exports to the European Union rose 23.4 percent year-on-year, to $13.4
billion in the first two months. Germany was the main importer of Turkish goods, with trade reaching some $2.7 billion. It was followed by Italy with $1.60 billion, the U.K. with $1.59 billion and the U.S. with $886 million. Turkish imports worth $4 billion came from China while imports from Russia amounted to $3.86 billion. Imports for Germany and
the U.S. stood at $3.92 billion and $2 billion, respectively. In the twomonth period, manufacturing made up the most of Turkish exports, with a 93 percent share and was valued at $23.8 billion. Agriculture and forestry exports of about $1.02 billion amounted to a 4 percent share while mining and quarrying exports grabbed a 2.1 percent share with 542 million.
NZ trade surplus as car imports fall to 5 year low Growth Index for Europe climbed 2.7 points from the last quarter of 2017, reaching 103.5. Growth across the Eurozone remains healthy and has been boosted by the continued increase in global trade as well as strengthening domestic demand in member states. The findings suggest that the EU is on course to record impressive GDP growth in the first quarter of 2018 and export growth is an important contributor to this. The report also points to Spain and Germany as the top performing exporters among the EU’s largest economies. Spain, whose largest net exports include vehicles, fruits, vegetables and meat, recorded the highest index score in the first quarter of 2018. –CB Report
WALLINGTON
N
CUSTOMS BULLETIN REPORT www.customsbulletin.com
ew Zealand posted a trade surplus as imports and exports both increased, with imports at a high for the month even as car imports fell, Statistics New Zealand said. Goods exports jumped 11 percent to $4.46 billion compared with February last year, while imports rose 4.6 percent to $4.24 billion, resulting in a trade surplus of $217 million for the month, compared to a $42 million deRicit last year. The latest data reverses January’s trade deRicit of $655 million, which was itself a big swing from December when the country recorded a trade surplus of $614 million, the largest ever for a December month. There was a 33 percent decline in the value of car imports to $257 million,
a Rive-year low, due to a delay unloading four vehicle carriers holding about 8,000 cars after stink bugs were found on the vessels. “The goods on these vehicle carriers
would normally have been included in February’s import statistics, but will now be included in the statistics of the month when the respective shipments are un-
loaded,” international statistics manager Tehseen Islam said. Imports still increased, with electrical machinery and equipment imports up 12.5 percent to $328 million and mechanical machinery and equipment imports up 10.4 percent to $611 million, making the latter the largest import commodity group for the month. Imports of petroleum and products dropped 9.3 percent to $427 million. Meanwhile, milk powder, butter, and cheese remained the country’s largest commodity export, with that category up 5.3 percent to $1.095 billion. Gains in dairy product exports were more moderate than earlier in the season, due to a fall in export prices for milk powder in the month, Stats NZ said. The unit price of butter exports has fallen 14 percent from the recent peak in November 2017 but was 30 percent higher than in February 2017.
14
www.customsbulletin.com
FIA arrests Pakistani immigrant deported from Greece Friday April 6, 2018
Business
LAHORE: The Federal Investigation Agency (FIA) has arrested a person who illegally went to Greece and was deported from there. FIA sources said that Muhammad Mansha who was sent to Greece by a fake travel agent was detained and deported by Greek authorities. The fake travel agent had received Rs 2,50,000 to send Mansha to Greece. Greek authorities deported him with an emergency passport and he was arrested as soon as he landed at Allama Iqbal International Airport in Lahore.
CM approves wheat procurement campaign LAHORE
CUSTOMS BULLETIN REPORT www.customsbulletin.com
P
unjab Chief Minister Muhammad Shehbaz Sharifsaid that the provincial government will procure 4 million tons of wheat from farmers. He said this while presiding over a meeting here in which he also granted approval to wheat procurement campaign 2018. He said that wheat would be purchased at the rate of Rs1,300 per mound and gunny bags would be provided to farmers at theirdoorsteps and this unique initiative would tremendously beneRit the small farmers. He said that a transparent and
IRSa releases 50,600 cusecs water KARACHI
CUSTOMS BULLETIN REPORT
foolproof system should bedevised to provide gunny bags to farmers. He said that directprovision of gunny bags to farmers was an important step which would eliminate
Pak-Thai fTa likely to be signed this year: Thai Trade advisor
www.customsbulletin.com
he Indus River System Authority (IRSA) released 50,600 cusecs water from various rim stations with inflow of 50,300 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1,386 feet, which was 6 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 18,300 cusecs and outflow as 17,500 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.
T
the role of middleman. The Punjab government would provide every possible facility to small farmers during the campaign and such a system has tobe devised
to provide maximum relief to them, he added. He said that process of distribution of gunny bags would start from mid of April. He ordered that all facilities includingtents, fans and cold drinking water should be arranged at thewheat procurement centres for farmers. The CM made it clear that posting of corrupt staff at procurement centers would not be tolerated at any cost. The provincial ministers, advisors and secretaries would visit procurement centers of the districts allocated to them. Provincial ministers Rana Sanaullah, Malik Nadeem Kamran, Bilal Yasin, Ayesha Ghaus Pasha, Naeem Akhtar Bhabha, Advisor Dr Umar Saif, chief secretary, senior Member Board of Revenue, secretaries concerned and high ofRicials attended the meeting.
P
KARACHI
CUSTOMS BULLETIN REPORT www.customsbulletin.com
akistan and Thai governments are actively engaged in talks on free trade agreement (FTA) and with signing of the FTA, the bilateral trade will instantly boost as there is a huge potential on the both sides. ‘So far six successful meetings are held and signing of FTA is expected before end of this year,’ said Honorary Trade Advisor to government of Thailand and President PakThailand Business Forum, Arif Sule-
man, while talking to a group of journalists. He said the bilateral trade was very low against the potential. However, it had risen over last year. Thai exports had increased to $ 1,47 billion from $ 900 million, and that of Pakistan from $ 100 million to $ 150 million. He said, although the trade was in favour of Thailand yet Pakistan would beneRit a lot after FTA. The main hurdle to the bilateral trade was high duties imposed by Thailand on imports by and exports from Pakistan. He underlined the need for maximum value-addition by Pakistan and di-
versify its products range to meet Thai market demand. By better processing and packaging of fruit and sea-food, Pakistan could capture a big share of the market. Thailand was in better position because it had many quality items for export, he noted. He said Thai Airlines was operating from Karachi, Lahore and Islamabad, and this would also be helpful in increasing the bilateral trade. He said Thailand was also interested in tourism sector of Pakistan. He said Pakistan had sought assistance from Thailand for setting up fruit processing plant.
hk business costs change and MPf plan is no different CENTRAL
CUSTOMS BULLETIN REPORT www.customsbulletin.com
ll firms in Hong Kong face changing business costs, so they should be able to cope with officials’ advance warning to dig deeper into their own pockets to pay employees’ severance and long-service payments, the city’s labour minister said. The labour minister was responding to several calls for officials to do more for the city’s small and medium-sized enterprises. Most oppose the plan, arguing it would impose a heavy financial burden, though the government said it would, through the fund, offer greater subsidies for smaller companies. Small and Medium Enterprises Association president Stephen Kwok Chunpong reiterated on Sunday that even after putting money into the savings fund, 44 per cent of SMEs hiring fewer than 10 people would still need to dig into their own pockets for severance and longservice payments after 20 years. Kwok suggested that the government consider offering more help to firms earning up to HK$2 million a year, such as by matching the 1 per cent that employers would need to contribute to their savings account, as well as extending the 12-year grace period.
A
aCCa to work for boosting gDP growth to 7% on average KARACHI
T
CUSTOMS BULLETIN REPORT www.customsbulletin.com
he Association of Chartered CertiRied Accountants (ACCA) Pakistan held the 2nd edition of Pakistan Leadership Conversation (PLC) with six events in March 2018. Event coordinator said that ACCA members pledged during the event to collaborate with private and public sectors to drive social and economic
growth for an emerging Pakistan. He said the key focus was on working to boost GDP growth rate by an average of seven percent in the next Rive years, and bringing Pakistan’s ranking in the top 50 for Global Competitiveness Index and Ease of Doing Business index. Moreover, he said, the ACCA has helped to deRine some of the vital elements required for delivering on socio-economic development across Pakistan. “One of the key items that has been at the heart of the conver-
sation is the role CPEC under China’s Belt and Road Initiative (BRI). ACCA is playing its part by utilizing its worldwide reach with BRI countries, engaging policy makers, academia and business to realign priorities and strategies to take full advantage of the potential that CPEC has to offer,” he said, adding that the ACCA has drawn a roadmap with key deliverables essential to continue Pakistan’s progression towards achieving socioeconomic prosperity. “One of the big-
ticket items is tax and foreign exchange regulation reforms. According to the Global Competitiveness Report 2017-18, taxation policy and tax collecting agency’s mindset, preceded by corruption, is the second biggest impediment to ease of doing business and global competitiveness rankings of Pakistan.” In the past, he said, measures have been taken for curbing corruption, but the taxation system requires more trust-driven and transparent policy.
15
www.customsbulletin.com
Iran Indonesia trade value grows 28% TEHRAN: Iran’s trade with Indonesia totaled 1.89 million tons worth $733.62 million during the 11 months to registering a 77.19% and 28.11% growth in tonnage and value respectively compared with last year’s corresponding period, the Islamic Republic of Iran Customs Administration announced. Iran exported 1.59 million tons of goods worth $505.72 million to Indonesia during the period, registering a whopping 105.66% and 248.21% growth respectively year-on-year. Exports to Indonesia had 1.36% and 1.21% share in tonnage and value of Iran’s total non-oil exports during the 11-month period, making it Iran’s 10th biggest export destination. Indonesia exported 292,159 tons of commodities worth $227.90 million to Iran during the same period, up by 0.82% in tonnage and by 29.21% in value YOY.
LCCI vows to solves businessmen’s problems
L
Chambers
kCCI urges lawmakers to take notice of electricity load shedding
LAHORE
CUSTOMS BULLETIN REPORT www.customsbulletin.com
ahore Chamber of Commerce & Industry (LCCI) President Malik Tahir Javaid said that the Lahore Chamber would continue its efforts to get solve the business community’s problems including withholding tax on bank transactions, simplification of taxation system, traffic jams around busy markets,and misuse of discretionary powers by tax officials. Talking to a delegation of traders, led by Baber Mahmood here at LCCI, he said that business community must have representation in parliament that would be equally beneficial for both
traders and economy. LCCI Senior Vice President Khawaja Khawar Rashid also spoke on the occasion. Malik Tahir was of the view that representation of business community in the parliament would ensure formulation of trade and industry-friendly policies and help economy flourish at a faster pace. He said that withholding tax on banking transaction was hampering trade and economic activities, therefore, it must be withdrawn in the larger interest of businessmen. Though expansion of tax net was need of the hour, the authorities concerned would have to bring the untaxed sectors into the tax net, he maintained. Head of the delegation Baber Mahmood lauded the efforts of Lahore Chamber of Commerce & Industry for the cause of business community and assured his full cooperation.
Friday April 6, 2018
KARACHI
P
CUSTOMS BULLETIN REPORT www.customsbulletin.com
resident Karachi Chamber of Commerce and Industry (KCCI) Muffasar Atta Malik, while expressing deep concerns over the current spell of unannounced load shedding being suffered by all industrial zones of the city, urged the lawmakers in Islamabad and Sindh to take notice of the situation by strictly directing the Utility Service Provider to supply uninterrupted electricity to all industrial units across Karachi. In a statement issued, President KCCI said that load shedding was being carried out on rotation in all industrial zones of the city for up to Rive hours during night, resulting in terribly affecting the production of many industrial units, particularly the production of export-oriented industries who have to dispatch their goods abroad within a limited time period. “If the situation goes on like this, the exporters may not be able to dispatch their consignments on time, which would not only cause severe losses to them and
to the national exchequer but would also result in losing the valuable foreign buyers”, he added. Muffasar Malik feared that limited production by industrial units of Karachi was likely to affect the overall economic performance of the country by further plunging the exports and also trimming supplies in the local markets, besides raising the bars of poverty and unemployment. He said that the current spell of load shedding was due to the differences between K-Electric and SSGC over the
payment of old outstanding dues for gas consumption by K-Electric. The conRlict stands unresolved and has intensiRied nowadays between the two Utility Service Providers. On one hand, K-Electric claims that SSGC has curtailed gas supplies and they were receiving 90 mmcfd gas only against the demand of 190 mmcfd, leaving no other choice for K-Electric but to resort to load shedding whereas on the other hand, SSGC refutes these claims of K-Electric and says that KElectric was a defaulter of billions of
Pak-Vietnam trade to reach at $1 billion LAHORE
V
CUSTOMS BULLETIN REPORT www.customsbulletin.com
ietnamese wanted to bring its bilateral trade with Pakistan from the current US $ 700 million to US $ one billion, as economic and trade relations between Pakistan and Vietnam can be further enhanced through market research, information sharing and highlighting opportunities in both countries. Ambassador Extraordinary and Plenipotentiary of Vietnam Pham Hoang Kim expressed these views in a special meeting held at the regional ofRice of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), while Commercial Attache Pham Tri Trung also accompanied him, according to Federation’s spokesman. Pham Hoang Kim said that Vietnam Chamber of
Commerce and Industry (VCCI) had already signed a Memorandum of Understanding (MoU) with the FPCCI on March 26, 2004 during President Tran Duc Luong’s visit to Pakistan. He appreciated that Pakistan had established diplomatic relations with 185 countries, economic-trade relations with 224 countries and territories, strategic partnership with 15 countries, comprehensive/extensive strategic partnership with countries comprehensive partnership with 10 countries. On this occasion, FPCCI Regional Chairman and Vice President Chaudhry Arfan Yousaf said that Vietnam was an important country for Pakistan in ASEAN and Pakistani business community gave great importance to its relation with Vietnam. He said Pakistan was a nation of great economic importance in South Asia situated at the trans-
portation route connecting PaciRic and Indian Ocean to Arabian Sea, close to petroleum region of Middle East and Central Asia, bridging EU and Middle East with South Asia and South East Asia, a potential market of 200 million customers. He said that cotton fabrics, accessories for textile, garment & footwear industries, cotton yarns, pharmaceuticals products, surgical instruments were Pakistan’s major exports to Vietnam, and ‘We also trade in tea, synthetic & cotton Ribers, pepper, iron & steel, Rish Rillet, rubber cashew nuts.’ Arfan said Pakistan should be seen as an emerging centre of trade for landlocked Central Asia, South Asia, fast-developing Western China and the Gulf – any trade among them had to take place through Pakistan. He said trade delegations between two countries should be exchanged frequently.
rupees. “Why industrialists, who always clear their outstanding dues on time, are being penalized because of the differences between the two Utility Service Providers”, he asked, adding that both Utility Service Providers, instead of creating problems for the consumers, should act sensibly and amicably resolve their issues on priority basis. Referring to electricity unannounced load shedding in residential areas and commercial markets of the city, President KCCI recalled that a similar situation was witnessed back in June 2015 when more than 700 people were killed within four days due to brutal heat wave, prolong load shedding and water shortage in Karachi which should not be repeated again. “We cannot do anything about the current heat wave but can surely save many lives this time by ensuring uninterrupted electricity and water supplies to the masses.” Water and electricity shortages being suffered by Karachiites should be resolved on war footing so that precious lives of innocent citizens could be saved, he stressed, while urging the lawmakers to seriously take notice of situation in order to avoid any untoward incident.
ICCI for construction of water reservoirs heikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry has called upon the government to focus on urgent construction of water reservoirs in the country to ensure achieving sustainable economic growth. He said being an agriculture economy, Pakistan was heavily dependent on water resources, but according to a recent report of IMF, Pakistan was 3rd among the countries facing rising water shortage, which should be a cause of concern for policymakers. He said the rising water crisis could jeopardize the economic future of the country. He said in 1951, per capita water availability in Pakistan was 5260 cubic meter that had come down to 940 cubic meter in 2015.
S
16
www.customsbulletin.com
ICAP asks FBR to clarify status of taxpayers becoming withholding agent KARACHI: Federal Board of Revenue (FBR) has been urged to clarify status of a taxpayer to become withholding agent. Institute of Chartered Accountants of Pakistan (ICAP) in its proposals for budget 2018/2019, said that the existing sub-clause (h) and (i) of clause (i) of sub-section (7) of Section 153 of Income Tax Ordinance, 2001 is not appropriately drafted. In many cases where the turnover for the preceding years was less than Rs50 million and the current year turnover exceeds Rs50 million.
Friday, April 6, 2018
CUSTOMS BULLETIN
Sukkur Customs impounds contraband tyres, juices & other items following tip-off HYDERABAD aSLaM aNJUM QUREShI www.customsbulletin.com
T
he Customs AntiSmuggling Organization (ASO) Hyderabad, ASO Sukkur, seized 24 sacks of tyres of different sizes, about 960 tins of Rani Juice made in Iran, an engine of Grand Lexis, old & used, and auto parts priced at Rs868162 including customs duty and taxes during an action in Sukkur during the month of March 2018. The action was taken following the directions of Collector Hyderabad Akhlaq Ahmad Khattaq. Sources told Customs Today that Additional Collector Dr Aamer Nawaz Hamid received a tip-off regarding the smuggling of foreign origin contraband goods. He formed a team, comprising superintendent, inspectors, sepoyes driver and others, to take action against the smugglers. The ASO team intercepted a public transport vehicle near C/O Parcel OfRice, Railway Station, Rohri Sukkur Division and recovered the said items. The ofRicials asked the driver about the documents regarding the legal import of the items but he could not prove legality of the
goods. The team impounded the items under the Customs Act. A case
was registered against the accused. The case has been sent to the cus-
toms adjudication for further legal action. The ASO deposited the con-
Riscated goods into Sukkur State Warehouse.
PIa deficit decreased from Rs 32 to 26b in 2017: Na body told PESHAWAR
CUSTOMS BULLETIN REPORT www.customsbulletin.com
N
ational Assembly Standing Committee on Cabinet Secretariat was informed that the National Flag Career-PIA was turning around, registering decrease its deRicit to Rs18 billion during the current Rinancial year. The committee which met with Rana Muhammad Hayat in the
chair was informed that following drastic measures by the PMLN government the PIA was gradually turning into proRit making entity and deRicit decreased from Rs26 billion to 18 billion that was 32 billion in 2016. The committee was told that the action was taken against the crew members who are found involved in illegal activities like narcotics smuggling. However, the PIA ofRicials said that Anti Narcotics Force could prevent such unethical business practice in better way. Besides offering more facilities to passengers the committee was told that more destinations
were being explored for the national Rlag career to earn more revenues and strengthen its Rinancial position. The meeting also dis-
missed reports about full scale privatization of the company saying that several initiatives were being made to bail out the na-
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).
tional Rlag career. Asad Umar was of the view that policy of the national airline was not catering to the modern day requirement and could not venture into competition with private sector and as a result the PIA had suffered losses. The committee was informed that a project featuring various modern facilities including a vast parking lot, bridges, elevators and other civic amenities was being executed at a cast of Rs2.9 billion at Bacha Khan Airport Peshawar. The PIA ofRicials said that the project was underway at good pace and would be completed till May this year.