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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
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Karachi, Thu August 10, 2017
KARACHI
AFTAB CHANNA
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W
ith the start of the new fiscal year, the Federal Board of Revenue is yet to assign the Customs Collectorates Appraisement West, South, Exports, Preventive and Port Muhammad Bin Qasim the revenue collection targets for the new Fiscal Year 2017-18, it is learnt.
The FBR used to work out revenue targets in the federal budget that was presented in the National Assembly by Federal Finance Minister Senator Ishaq Dar in the month of June 2015. And, the FBR is supposed to assign the revenue targets to all the tax collecting bodies to start generating revenue with certain targets. However, the FBR authorities are yet to shift the targets to the Collectorates and the RTOs, insiders told Cus-
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toms Today. In the first month of FY 2017-18, the Collectorate of Customs Preventive collected Rs 11,197 million under the head of customs duty, sales tax, income tax and the federal excise that included Rs 2774.22 million as customs duty, Rs 6852.86 million as sales tax, Rs 1180.32 million as income tax and Rs 389.63 million as the federal excise duty (FED). While, the Customs Appraisement West contributed Rs21,954 million duty and taxes to the national exchequer in the month of July 2017 which include Rs 8,617 million as custom duty, Rs 9,339 million as sales tax, Rs 3,876 million as income tax and Rs 122 million as federal excise duty.
FBR yet to assign revenue targets to Customs Collectorates in Karachi
DG Valuation revises customs values of handbags, shoulder bags, purses
Collector Appeals orders release of smuggled goods on payment
Al Batha Customs foils bid to smuggle 420,000 Captagon
Customs Intelligence seizes smuggled mobiles worth Rs4m
With the start of the new fiscal year, the FBR is yet to assign the Customs | SEE PAGE 01 |
DGValuation has revised the customs values of ladies handbags, shoulder bags | SEE PAGE 02 |
CollectorDrAsifMahmoodJahhasordered thereleaseofsmuggledgoodsonpayment | SEE PAGE 05 |
One of the people who came to the Kingdom through Al Batha port | SEE PAGE 07 |
Customs I&I has seized smuggled mobile phones worth over Rs4 million | SEE PAGE 08 |
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DG NAB distributes Rs15m cheques among affectees Thursday, August 10, 2017
National
LAHORE: NAB Lahore Director General Shahzad Saleem distributed 25 cheques worth Rs 15 million among the Bank of Punjab, JS Bank officials and affectees of notorious ‘Double Shah’ scam at a ceremony. According to NAB spokesman, recipients included manager BoP Lahore region, who was handed over Rs 12,200,000) cheque. In the Double Shah scam, Fareeda Kausar received Rs 168,105, Rafaqat Hussain Rs 23,993, Muhammad Khurram Rs 153,272, Muhammad Afzal Rs 114,000, Arshad Ali Rs 94,864, Sobia Sibtain Rs 55,000, Hafiz Muhammad Mubashir Rs 45,056, Noreen Rasheed Butt Rs 55,000, Miskeen Ali Rs 44,318, Sanaullah Rs 152,796, and others.
DG Valuation revises customs values of handbags, shoulder bags, purses
ISLAMABAD
KARACHI
CUSTOMS BULLETIN REPORT
WAQAR AHMED ANSARI
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ustoms Appellate Tribunal Chairman Justice (r) Malik Manzoor Hussain will visit the tribunal’s headquarters in Islamabad in the middle of August. According to the tribunal’s officials, the chairman would reach office on August 15 and would stay there for a week. The chairman usually visits the tribunal headquarters in the capital city not later than 20 days. However, due to enhanced occupations at other stations, now he would visit the tribunal headquarters in the middle of the month, said tribunal’s staffers. The chairman had last month completed visit to office in Islamabad. He had headed tribunal’s proceedings for three days at Islamabad where he heard cases besides performing some of important administrative tasks. The chairman had decided a number of cases during his stay at tribunal besides heading administrative matters. He had adjourned hearing of cases involving Collectorate of Customs and Directorate General of Intelligence and Investigations, Islamabad. These cases were filed by M/s Waseem Autos, M/s Nisar Traders, M/s Parts & Parts, M/s Chief Autos, M/s Aman Elahi, M/s Kohinoor Traders, M/s Saleem Silk Centre.
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he Directorate General of Customs Valuation has revised the customs values of ladies handbags, shoulder bags, purses and clutches (Low-end brands) made of artificial leather Valuation Ruling No 1196/2017 under Section 25A of the Customs Act1969. A reference was received from Model Customs Collectorate (Appraisement) Lahore vide letter C. No. V-Cus/Misc/G-II/02/2017/Pt/1119 dated 28.03.2017 for determination of customs value of ladies handbags, shoulder bags, purses and clutches (Low-end brands) made of artificial leather under Section 25-A of Customs Act-1969. It was deemed expedient to visit the values so as to ensure that the customs values are in line with the prevalent prices in the international market. Hence, an exercise was undertaken to determine the customs values of subject goods under Section 25A of the Customs Act-1969. Stakeholder’s participation in determination of customs values: Stakeholders’ meetings were scheduled/held on 26.04.2017, 10.05.2017 and 27.07.2017. The meeting on 27.07.2017 was attended by the importers as well as representatives of clearance collectorate. All participants were requested to submit the follow-
Customs Tribunal chairman to visit headquarters by mid August
ing documents: Invoices of imports during last three months showing factual value. ii. Websites, names and Email addresses of known foreign manufacturers of the item in question through which the actual cur-
rent value can be ascertained. iii. Copies of Contracts made/LCs opened during the last three months showing the value of item in question. iv. Copies of Sales Tax Invoices issued during last three months showing the difference in
price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers. The meetings were attended by importers. The requisitioned documents were not submitted by the participants.
KP government allocates Rs15.3 b for power projects K
PESHAWAR
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hyber Pakhtunkhwa government is taking revolutionary steps towards the development of energy sector. A numbers of power projects having more than 40 MW capacities are being developed in full swing. For this purpose Rs. 15.3 billions have been allocated during the year 2017-18 for the development of
power projects. The provincial government has showed its concerned over the nonpayment of Rs. 1.5 billions as electricity generation charges from Pehur Power Station and decided to take this issue in the highest forum. It is further added that federal government is not cooperating with provincial government in connection with the development of power projects. This was stated in Pakhtunkhwa Energy Development Organization Board of Directors
(BoD) in its 19th meeting held under the chairmanship of Chairman, Sahibzad Saeed Ahmed. PEDO BoD meeting was also attended by secretary Energy & Power Engr. Naeem Khan, representatives from finance and home departments, SCCI president Haji Afzal, Enr. Latif Khan, Abdullah Shah, Ruhail Akram, Fuad Ishaq, PEDO Chief Akbar Ayub Khan. During the meeting Rs. 15.3 billion budget for the year 2017-18 of PEDO was presented while revised
budget for the year 2016-17 of Rs. 10.2 billion approved. Meanwhile, members of BoD approved PEDO’s developmental budget for current financial year. Board was also apprised of the progress regarding ongoing works on power projects. It was stated that three hydropower projects having capacity of 56 MW have been entered in completion phase and would soon start power generation. Moreover, the construction work on 356 mini micro hydropower proj-
ects, 84 MW Matiltan HPP, 41 MW Koto HPP, 69 MW Lawi HPP is going on in full swing. Future plan has been decided to start more power projects in province. In addition to this, six power projects of having total capacity of 518 MW are being developed through private sector and process of awarding in final stages. Recently, one of the biggest power projects in the history of province having capacity 150 MW Sharmai HPP at Lower Dir has been awarded to private sector for implementation.
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ollectorate of Customs Appeals Collector Dr Asif Mahmood Jah has ordered the release of smuggled goods on payment of redemption fine and taxes. According to the details, that ASO team intercepted a bus bearing registration no: LES-17-788 at Babu Sabu Interchange Shera Kot, Lahore and found some cartons appearing packed with foreign origin goods. On query, the driver identified himself as Asadullah disclosed that the goods belonged to six passengers travelling in the same bus. The passengers came forward and identified themselves as Hassan Iqbal, Bilal, Jamal Nasir, Muhammad Haris, Izzatullah Khan and Imran Khan. Thereafter, examination of the goods packed in the said carton was conducted in presence of above said owners and witnesses which led to the recovery of clutch set, element oil kit (Toyota Genuine parts), Cylin-
Thursday, August 10, 2017
der Sub assembly (Toyota Genuine parts), SAC premium water pump, shock absorber, NGK Spark plugs for Toyota, Inlet air cleaner (Toyota Genuine parts), less and body, for turn (Toyota), fuel pump, LED 60 inches Sony, LED Samsung, UHD TV
and other items. On demand the said owner could not produce any documentary evidence or otherwise in support of legal import or lawful possession of the above said recovered foreign origin goods rather the owners stated that they had purchased their above said owned goods from Peshawar market. They further expressed their willingness to pay duty and taxes leviable thereon. The ASO team seized the goods and forwarded the case to Customs Adjudication for further proceedings. During hearing the owners adopted the plea that they were unaware that these goods needs any legal documents but now they are ot n d ready to pay all legal payments. l u r co r ow n e After hearing their arguments, o d i e c a s iden the v d e Collector Appeals Dr. Asif n y a r m ta r O n de umen por t o Mehmood Jah ordered to rec o m i d l y a leg e an f c o u lease goods after payment of t d d i r o a o s p pr above in sup 20 percent redemption fine, e e s h i t r w f athe on o i r other s duty and taxes. s s d e s o in go ul pos
lawf n orig ey h a d fo r e i g d e r hat th t e v d o e c t e ned r ta a i d ow ners s s w e o v e o h b t rket heir a ar ma ased t h w c a r h u s p e f ro m P goods
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Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
EDITORIAL
Question of real growth rate
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esearchers at the Center for International Development of the Harvard University, in a study, have predicted Pakistan’s annual growth rate at 6 percent for the next 10 years, revising an earlier projection of five percent for the period. However, the largest economic partner of Pakistan, China with current GDP of $12 trillion will achieve a growth rate of 4.41 percent. The growth rate of a country is measured by keeping in view economic complexities, diversities and sophistication’s as well as its production capability with regard to its exports. According to the study,economic complexities not only describe what makes a country rich or poor, but projects its future growths. The growth rate of Pakistan will beat all Asian economies but it would have no match with India which will grow at 7 percent in coming years. Though the world financial institutions predict subdued GDP growth rate in coming years, but some economists hope it will improve to over eight percent by 2030 as the China-Pakistan Economic Corridor will go in full operation by then. However, keeping in view political uncertainty and poor governance, achievement of even five percent growth rate will be unattainable. On the basis of the recent tumultuous events on the political canvas of the country, independent economist question even the government’s claim of achieving 5.3 percent GDP growth rate in 2016-17. The major issue facing the nation at the moment is to keep consistency in the ongoing economic policies and maintain the financial order. It has been a routine in the history of the country that unscrupulous elements come out from hibernation to damage the business and trade activities in uncertain political environment. The new prime minister has, however, assured the nation that economic policies of the Nawaz government would continue, but he needs to do more than that. The former finance minister with all his abilities and capabilities had failed to keep financial order in the country. He is also blamed for statistical manipulation of economic growth, revenues, expenditures and budget deficit at a large-scale. The world financial institutions have also questioned the GDP growth rate of the country claimed by the minister when electricity consumption fell by seven percent, exports declined and unemployment increased.
Dilemma of textile city project A
LAHORE
DR AFTAB AFZAL
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fter spending more than Rs2.5 billion public money on the Pakistan Textile City project, the government has decided to wind it up in the national interest. The ambitious project, factually an industrial zone dedicated to the textile processing and related industries, was launched in 2009 over an area of 1250 acres in Karachi. The city was made public-private joint venture company driven by the vision to develop and operate a state-of-the-art industrial zone to boost value added textile products. But the project soon
ran into financial troubles with liabilities reaching over Rs5 billion during the last eight years. After years of mismanagement, corruption and administrative failure, its board of governors has now decided to close it up. A prominent board member told the Senate committee on ports and shipping that a general body meeting of the investors and shareholders has been called to decide the fate of the mega project. At least 75 percent investors are required to vote for winding up the project, as it is allegedly causing Rs800,000 per day loss to the national exchequer. With a decision to close the project, the officials
would continue the traditions of making and breaking process of the national building programme. Now after years of ill-planning and mismanagement, all the assets of the company will be disposed of and the land will be transferred to the Port Qasim Authority, which had earlier leased it to the city. The burden of all the liabilities of the company will be placed on the port to sort out the matter from its own resources. At least 56 percent shares of the company were owned by the federal government and 16 percent by the Sindh government. However, despite the involvement of the federal and provincial gov-
ernments, the project could not get even gas and electricity connections, leaving the area waterless during the whole years. This shows how the official cadres is lethargic in acting on time. In the absence of an accountability mechanism, it will be difficult to fix responsibility of the losses on anyone. This is the dilemma of this nation that precious national exchequer is wasted away and no one is held responsible for it. Billions of dollars have been lost on Nandipur Power Project, Kalabagh Dam project, Neelum Jhelum hydro power project and the latest on Textile City Project. God knows when this process will end.
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Sugar jumps as Brazil lowers tax on Ethanol Thursday August 10, 2017
World
BRASILIA: Sugar futures rose to their highest level in two months Monday with news out of Brazil that traders anticipate will lead cane producers there to convert a smaller percentage of cane to sugar. Raw sugar for October was up 3.9% at 14.93 cents a pound on the ICE Futures U.S. exchange, on track for its highest close since May 30. Sucden Financial Research said that while much of Monday’s bounce was a result of technical buying and short covering, an announcement by the Brazilian government late Friday that it would reduce the tax on ethanol lured buyers.
Al Batha Customs foils bid to smuggle 420,000 Captagon
Border Patrol agents arrest Sureño gang member TUCSON
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RIYADH
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ne of the people who came to the Kingdom through Al Batha port tried to smuggle a quantity of Cepagon seeds (419,653) four hundred and nineteen thousand and six hundred and fifty-three Cepatagon tablets, which were hidden in one of the vehicles coming to the customs. Abdulrahman Al-Mahna, general manager of Al Batha Customs, was able to thwart the attempt to smuggle the quantity of Cepagon beans after the arrival of one of the vehicles to the customs, where it was found hidden in the vehicle so that the cabbages were hidden in a cache that was prepared and prepared for smuggling in the roof of the vehicle inside and in the cavity of decoration And other parts of the vehicle. AlMahna said that the Customs pre-
RBS to make Amsterdam new trading hub oyal Bank of Scotland has picked Amsterdam as its post-Brexit European Union trading hub and will deliver 150 jobs in the Dutch capital, chief executive Ross McEwan said. Speaking at the presentation of the bank’s second quarter results, McEwan said the bank will build up its minor Amsterdam unit so that its trading division NatWest Markets can continue operating after Brexit. RBS needs an EU base to maintain access to the EU’s single market when London loses passporting rights after Britain quits the EU. The bank is already in ‘advanced talks’ on setting up the new European operation in the Netherlands, bank officials said. RBS has a banking licence in the Netherlands, which is part of its inheritance from the abortive takeover of ABN Amro 10 years ago. –CB Report
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vented in the middle of last month an attempt to smuggle a quantity of Cepagon pills reached (357) thousand Cptagon pills, stressing that the Customs Batha like all the customs outlets is making great efforts and continuous in order to thwart and detect the smuggling of all damage to the country and its capabilities.
Meanwhile, Al-Khafji Customs foiled an attempt to smuggle a quantity of occupied gold weighing 16.575 sixteen kilograms and five hundred and seventy-five grams found hidden in the position of the feet of the front passenger in one of the vehicles coming to the Kingdom via Customs.
Russian bank at center of trump storm lures blackrock, fidelity
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nvestors have plenty of reasons to avoid the $6.2 billion of bonds issued by Russia’s most politically connected bank. VEB, as the stateowned lender is known, has been locked out of international debt markets by U.S. and European sanctions since 2014. It was saddled with bad loans after oil prices slumped, forcing the Kremlin to swoop in with a multibillion dollar bailout. Revelations that the bank’s chief, Sergey Gorkov,
met with Donald Trump’s son-in-law a month before the president’s inauguration then thrust it into the elections-meddling scandal. And now U.S. lawmakers have pressured Trump to strengthen Russian sanctions once again. But some of the world’s biggest money managers flush with cash and attracted to VEB’s relatively juicy 5 percent yields have instead been loading up on the Russian lender’s bonds. –CB Report
ucson Sector Border Patrol agents arrested a 28-yearold male Mexican national morning east of Douglas, Arizona, for illegally entering the United States. During processing, agents observed multiple Sureño gang-related tattoos on the exposed skin of Fernando Alberto Santoyo-Martinez. Records also revealed Santoyo was previously convicted in Clayton County, Georgia, for harassing phone calls and was deported in 2011. The man now faces federal criminal charges for re-entry. Meanwhile, The US administration under President Donald Trump may have generated shockwaves elsewhere, but little has changed when it comes to Customs cargo clearance. The only impacts on US Customs and Border Protection in Trump’s first six
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months have been the debacle of the executive order on immigration, and the appointment of Kevin McAleenan as Customs commissioner, said Susan Kohn Ross, a partner at Mitchell Silberberg & Knupp and frequent commentator in JOC.com. “Beyond that, we haven’t seen any impact,” she said. From a cargo perspective, she added, there has not been a significant cut in the budget because there has not been a Trump budget. There is no sense yet of what the priorities will be at the Department of Homeland Security, other than to protect the US borders. “That’s been a standard phrase for a long time but we don’t know what that means or may mean under the new administration,” Ross said. McAleenan’s appointment has been universally hailed, in part because so many mid-level positions remain unfilled throughout the Trump administration, and many details of US trade policy remain uncertain, including the outcome of the looming renegotiation of the North American Free Trade Agreement.
Japan’s GDP dips 0.1 percent in June
apan’s real GDP fell by 0.1% in June from a 0.5% grow in May, due to the lowest recorded overseas demand in two months, Nikkei Japan said in a report. The Japan Center for Economic Research said in its GDP estimate that weak US and EU-bound shipments diminished the country’s exports by 1%. Imports also rose by 1.7%. Housing investment also dwindled by 0.4%. However, personal consumption grew 0.5%, thanks to stronger new-vehicle sales. Capital investment increased by 0.5%. Meanwhile, Japan’s aluminum industry is worried that any
US trade action to block imports of the metal may result in surplus supply elsewhere and prompt a chainreaction of retaliation by other nations, the head of a trade body said yesterday. US President Donald Trump’s administration is determined to curb imports of aluminum, along with steel. In April, it initiated a “Section 232” review of the aluminum industry using a 1962 law that allows the imposition of tariffs or quotas on imports if national security is threatened. Results of the review are still pending, but the move has been widely criticised by diplomats. –CB Report
Iran pistachio exports earn $173m in 4 months
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TEHRAN
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lose to 16,660 tons of pistachio worth $173.66 million were exported from Iran to 56 countries, including the US, Ukraine, the UAE, Italy, Bahrain, Brazil, Bulgaria, Turkey, Canada, Qatar, Switzerland, France, Poland, Sweden, Malaysia,
Vietnam, the Netherlands, Thailand, Japan, Romania and Hong Kong, during the first four months of the current fiscal year (March 21-July 22). The exports registered a 41.8% and 36.5% decline in weight and value respectively compared with the corresponding period of last year, the Islamic Republic of Iran Customs Administration figures were cited by the Persian daily
Donya-e-Eqtesad. “Iran supplies more than 50% of the world pistachio market,” deputy minister of industries, mining and trade, Mojtaba Khosrotaj said, adding that Iran’s main rival in pistachio production is the US state of California. Meanwhile, Head of Iran’s TPO said Iran exported agricultural machinery worth six million dollars in the first quarter of present Iranian
calendar year (began March 21). Head of Iran’s Trade Promotion Organization (TPO) Mojtaba Khosrowtaj emphasized the important role of development in the country’s machinery industry stating “over 90% of the country’s demands in the sector are supplied by domestic companies as the country’s dependence on imports is lower than 10 per cent.”
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Customs Exports issues final notices to three factories KARACHI: The Customs Exports has issued final notice to three factories in order to collect the evaded tax amounts. The Customs authorities issued notices to M/s Shafiq Marble and Export Karachi and M/s Shamim Enterprises Mirpurkhas. M/s Shafiq Marble and Export used wrong Pakistan Customs Tariff headings to get a consignment of marble dining tables cleared in June and caused a loss of Rs 3.2 million to the national exchequer. While checking the data of June, the Customs Exports found that the company used wrong PCT heading and issued a show-cause notice no: 188/2017 to recover the money.
Thursday, August 10, 2017
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Customs Intelligence seizes smuggled mobiles worth Rs 4 million KARACHI CUSTOMS BULLETIN REPORT www.customsbulletin.com
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irectorate of Customs Intelligence & Investigation (Enforcement) has seized smuggled mobile phones worth over Rs4 million from Jinnah International Airport (JIAP). Enforcement Director Samina Tasleem Zehra directed Additional Director Syed Ali Zaman Gardezi to take stern action against some lower staff posted at the JIAP for their alleged involvement in smuggling. Airport team in supervision of Shah Faisal Sahu, Deputy Director kept an active vigil on passengers and goods being imported/cleared from JIAP. Consequently, Customs I&I staff recovered two suspicious plastic shopping bags dumped outside the Domestic Cargo Gate at JIAP Cargo Terminal, Karachi. On preliminary inquiry, no one came forward to claim the ownership of the bags. Cursory, on spot examination of the bags found mobile/cellular phones. The bags were brought to the office of the Directorate General and detailed examination was conducted, which resulted into recovery of 96 smart phones without accessories.
Japan, UNODC committed to build operational capacity of ANF RAWALPINDI
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he United Nations Office on Drugs and Crime’s (UNODC) country office representative in Pakistan, Cesar Guedes, and Counsellor (Economic and Development) Embassy of Japan, Takashi Harada, handed over Five Progeny ResQ Handheld Raman Analyzers to Anti Narcotics Force (ANF) during a ceremony at
ANF Headquarters, Rawalpindi. According to statement issued here on Thursday, procurement of this state of the art equipment was one of the agreed deliverables under the Japanese funded UNODC project that is aimed at strengthening border security against illicit drug trafficking and related transnational organised crime. This is also part of UNODC efforts to enhance the operational capacity of drug law enforcement, specially ANF, in line with its Country Programme (2016 2019). Speaking on the occasion with the presence of senior offi-
cials from Embassy of Japan, UNODC and ANF, Director General, ANF Major General Musarrat Nawaz thanked the Government and people of Japan and UNODC for their continuous support to the Government of Pakistan, especially ANF, for building their operational capacity in countering numerous existing and emerging challenges posed by drug trafficking in the country and the region. He stated that apart from ANF operational staff, other Law Enforcement Agencies (LEAs) are also acquiring enormous technical advantage owing to the opera-
tional equipment, training on drugs and precursors and related specialist training courses being organised by UNODC. Major General Nawaz assured his continued support in all mutual endeavours. UNODC Country Office Representative in Pakistan Mr. Cesar Guedes said that UNODC along with its international donors especially Japan is committed to strengthening operational capacities of ANF and other LEAs for addressing the drug trafficking and global organised crime issues through proactive responses. Mr. Guedes thanked the Gov-
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ernment of Pakistan for committing to smooth implementation of the Japanese funded project activities (2016-2019) and specially thanked the Government of Japan for its commitment and generous financial support for this very important project. Counsellor (Economic and Development), Embassy of Japan Mr. Takashi Harada, acknowledged the efforts done by UNODC and ANF and highlighted the importance of this state of the art equipment to enhance ANF capacity for effective interdiction and investigation of illicit drugs.