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Karachi, Tue August 29, 2017

ISLAMABAD

M FAIZAN

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ollector Customs Adjudication Ihsan Ali Shah has issued a show cause notice to M/s Telenor Pakistan (Private) Limited under section 180 of the Customs Act 1969, calling upon the company to why the evaded amount of Rs 16.83 million should not be recovered from them and why a penal action should not be taken against them under sec-

tion 156 (1), (14) of the Customs Act, 1969. It was reported by the Principle Appraiser AFU, BBI Airport that the Directorate General Audit and Petroleum, during the scrutiny of record of AFU Imports for the year 201213, observed that M/s Telenor Pakistan (Private) Limited imported 595 consignments consisting of repaired plant, machinery, equipment, apparatus and parts and cleared the same under beneRit of sixth schedule to the Sales Tax Act, 1990. The beneRit was inadmissible because the cus-

Vol 2, Issue No. 196

Price Rs. 14.00

toms duty was charged at statutory rate under respective PCT headings. The beneRit of sixth schedules was admissible only if condition for zero rating of customs duty had been fulRilled and the duty had been charged at the rate of zero percent. This inadmissible beneRit resulted in non realization of government revenue amounting to Rs16.83 million. A demand notice was issued to M/s Telenor Pakistan Pvt Ltd, Islamabad for payment of the said amount of duty and taxes but they failed to pay the demanded amount.

Customs Air Freight Unit earns Rs 434.11 million revenue

DG Valuation decides to reschedule database from next month

Deputy Collector Hassan Farid issues ONO in favour of ASO

Finance Minister Ishaq Dar to attend two events in Urumqi

Smuggled goods impounded by ustoms Sukkur on National Highway

Customs AFU earned Rs 434.11 million under the head of all duty and taxes | See pAge 02 |

DG Valuation, decides to reschedule database from next month | See pAge 03 |

DC Customs Adjudication Hasan Farid has issued an ONO No. 228-229/2017 | See pAge 04 |

Dar, on the invitation from his Chinese counterpart Xiao Jie, will attend China | See pAge 11 |

ASO Hyderabad, has confiscated the foreign origin NDP seven smuggling items | See pAge 16 |

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Filer taxpayers increased by 58% in 4 years, 23% in one year Tuesday, August 29, 2017

ISLAMABAD: The number of return filer taxpayers in the country has increased by 58 percent during the fiscal year 2016 compared to FY2013 and by 13.23 percent against FY2015. The number of taxpayers who have filed returns has touched 1,216,614 figure compared to 769,892 during year 2013, showing growth of 58 percent, according to officials data. The number of taxpayers during FY2015 stood at 107,418, which witnessed growth of 13.23 percent when compared to the taxpayers of FY2016.

Islamabad

customs Air Freight unit earns rs 434.11 million revenue

ISLAMABAD

NAeM uLLAh tArIQ

tArIQ DerYA

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wo division benches of the Federal Service Tribunal on Monday reserved decision on Syed Sultan Abbas’s complaint filed against the Federal Board of Revenue (FBR). The FST benches, comprising Members, Syed Rafique Hussain Shah and Dr Nazir Saeed, heard the matter carrying compliants about implementation. Syed Rafique Hussain Shah and Dr Nazir Saeed had been hearing the matter for months. They also heard complaints submitted by Habib Ahmed, Muhammad Yasin and Muhammad Saleem. Hearing on these cases was adjourned for coming week. Ahmed, who filed this petition in 2011, had submitted in the tribunal that board’s administration had been ignoring FST’s old decision, thereby had not provided him relief granted to him by the tribunal. Yasin and Slaeem had submitted their complaints at tribunal in 2016. They had asked the tribunal to direct board on their promotion which they had been denied in violation of board’s rules and regulations. The other bench of FST, of Syed Muhammad Hamid and Javed Iqbal Kasi, would resume hearing of ‘antedation promotion’ cases filed by Muhammad Naeem Khan, Syed Rashid Hussain and Muhammad Bin Yamin.

he Customs Preventive Air Freight Unit (AFU) earned Rs 434.11 million under the head of all duty and taxes from 1st to 20th of August of the Rinancial year 2017-18. According to Deputy Collector AFU Shahid Jan, the AFU showed satisfactory performance during the period and earned Rs 108.5 million under head of customs duty. He told that during the Rirst 18 days of August FY17-18, the AFU earned Rs218.31 million under head of sales tax (ST) while AFU earned Rs107.30 million of revenue under head of income tax. He told that till 18th of August, the AFU earned Rs11.09 million under head of CD while it earned Rs12.64 as sales tax of Rs.8.57 million under the head of income tax. Talking about corresponding Financial Year 2016-17, Shahid Jan said that AFU earned Rs.937.6 million extra revenue against assigned target of FY 2016-17 under head of customs duty, AFU earned Rs2396.60 million under head of CD during Rinancial year (FY) 2016-17 against assigned target of Rs.1459.00 million. Meanwhile, The Customs staff of the Islamabad Airport Accompanied Baggage (AB) Section conRiscated 120 assorted cell phones from a pas-

Decision on complaints filed by FBr employees reserved

senger who was coming from Dubai. According to details given by Shahid Jan, Acting Additional Collector, Air Freight Unit, Islamabad, that, during a routine checking, the Customs staff doubted a baggage and ask the baggage holder to show his luggage. Passenger M Imran

Sadiq with passport No: CZ5462373 opened his bag which was full of assorted mobiles. Passenger Imran was coming on a Flight No: PK212 from Dubai and arrested at Islamabad because of carrying contraband mobile phones without having any proof of import.

The Customs staff seized the above said mobiles and registered an FIR against the culprit. The Federal Board of Revenue has already ordered the Customs staff of Islamabad airport that no mobile phone, gold and currency enter in the country by smuggling.

NDp contraband toyota hilux Surf impounded by ASo

ISLAMABAD

M FAIZAN

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he Anti-Smuggling Organization of the Directorate General Customs Intelligence and Investigation, Federal Board of Revenue Rawalpindi, has taken into possession the foreign origin used non-duty-paid smuggled Toyota Hilux surf worth Rs1.85million. According to the sources, the antismuggling staff of the Rawalpindi

Directorate Customs Intelligence has received a tip-off that a foreign origin used Toyota Hilux with a fake registration plate No: QAB-9374, Model 1998, is moving in the area of Sector E-11 Islamabad. The anti-smuggling staff started a thorough search for Toyota Hilux in Sector E-11. Finally, Customs I&I staff found the tipped-off non-dutypaid smuggled vehicle which was parked near E-11 Markaz Market Islamabad. The words Pakistan Muslim League (N) were written on

the front registration plate of the vehicle in green. The anti-smuggling staff had been waiting for more than four hours but no one came to claim the ownership of the vehicle. After waiting for a long time, the Customs I&I staff took the vehicle into possession in the presence of the witnesses and shifted it to the Directorate General ofRice. On the scrutiny of the record of the Excise and Taxation OfRice of the Motor Registration Authority Quetta, nothing was found positive.

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FBR to collect 6% WHT from non-filer CNG station owners KARACHI: Federal Board of Revenue has announced to collect 6 per cent withholding tax from non-filer CNG station owners. According to Withholding Tax Card for Tax Year 2017/2018, the CNG stations being the non-filers of income tax return are required to pay 6 percent withholding tax under Section 234A of Income Tax Ordinance, 2001 to person preparing gas consumption bill at the time of realization of gas consumption on charges. However, the withholding tax rate is four percent for filer of income tax returns.

NAB arrests culprits involved in depriving people of rs.786m

Tuesday August 29, 2017

Karachi

Dg Valuation decides to reschedule database from next month

KARACHI

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ational Accountability Bureau (NAB – Karachi) here on Monday arrested accused Ali Raza, proprietor of M/s AM Enterprises and Talal Asghar proprietor of M/s NTF Traders, alongwith their abettors, under Reference No. 34/2016. Both the accused were arrested following series of raids in varied parts of the metropolis and placed under judicial custody for deceiving people in general of Rs. 786 million, said a statement issued by the NAB – Karachi oﬃce. According to available details accused Abdullah and Mohsin Abidi were also arrested under the same case from remits of I.I. Chundrigar road and Hassan square.

court sends suspect on physical remand KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi has sent a suspect, Muhammad Saleem Garman, to the Customs Department on physical remand till August , 2017. Garman was booked in a case of smuggled gold and memory cards worth Rs 25,485,880. During the hearing, investigation oﬃcer produced the suspect before the court and informed that the suspect was facilitator in this case and the prosecution needs further investigations, therefore, the court may send him on physical remand. It needs to be pertained here that suspects Muhammad Imran son of Muhammad Farooq Patel, Anila Muhammad Imran wife of Muhammad Imran, Maheen Patel daughter of Muhammad Imran (father, mother and daughter) are also on physical remand till August, 2017.

KARACHI

wAQAr AhMeD ANSArI www.customsbulletin.com

he Directorate General, Customs Valuation, Director General Surriya Ahmed Butt DG Valuation Surriya Butt decides to reschedule database from next month. On the other hand, she is also going to revise the Valuation Rulings No: 746/2015 and 747/2015 on August 30, 2017, it is learnt. Sources told Customs Today that an application was submitted by the importers to Customs Valuation in which change in prices of press-fasteners, snap fasteners, press studs and parts was requested. Sources said that Valuation Ruling No. 476/2015 press-fasteners, snap fasteners, press studs and parts issued on 12th of June 2015. A meeting was held with the stakeholders on 16 August, 2017. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and email addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained. Valuation Ruling No: 747/2015 un finished, un dyed polyester (grey) fabrics was issued on 15th of June 2015. A meeting was held with stakeholders on 16 August 2017. Importers were told to furnish the import invoices of the last three months showing factual val-

ues as well. The copies of contracts were made/LCs opened during the last three months showing the value of item in question and copies of sales tax invoices issued during the last four 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. Meanhwhile, The Directorate General, Customs Valuation, Director General Surriya

Sources said that Valuation ruling No. 476/2015 of press-fasteners, snap fasteners, press studs and parts issued on 12th of June 2015. A meeting was held with the stakeholders on August, 2017

AnM traders files plea challenging FIr

KARACHI

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he Sindh High Court (SHC) has issued notices to customs authorities and deputy attorney general on a constitutional petition Riled by M/s AnM Traders for quashment of an FIR lodged against it on the charges of importing kerosene oil in the garb of white spirit. During the hearing of petition, a two-member bench, comprising Jus-

tice Munib Akhtar and Justice Yousaf Ali Saeed, directed them to Rile their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner stated that it is an import and trading petrochemicals and allied products, such regards imported from Seychelles a consignment 1979.795 metric ton of white spirit and Riled goods declaration according with law. According to the petitioner, he was shocked when he was informed by the ofRicials of the customs department that FIR was lodged against it by customs

authorities, wherein, it was alleged that the petitioner in a garb of white spirit had imported kerosene oil which falls in import control policy and violation of customs’ policy. He argued that allegations of the customs department are baseless and he imported white spirit after fulRilling all requirements. Citing Secretary Revenue Division, Director Customs Enforcement Directorate General Intelligence and Investigation-FBR and seizing/ investigation ofRicer of the department as respondents, he pleaded the court.

Ahmed Butt has decided to revise the Valuation Rulings No: 703/2014 and 705/2014 on August, 2017, it is learnt. Sources told Customs Today that an application was submitted by the importers to Customs Valuation in which change in prices of formic acid was requested. Sources said that Valuation Ruling No. 703/2014 Formic Acid H.S Code 2915.1100 issued on 19th of December 2014.

pcA moves Shc against M/s IcI Ltd irector of Directorate of Post Clearance Audit Customs has moved the Sindh High Court (SHC), challenging impugned judgment of appellate tribunal over exemption of sales tax @ 0% under SRO 509(1)/2007 on consignment of Titanium Dioxide. According to the details, counsel for the applicant stated in its special customs reference application that M/s ICI (Private) Limited.

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LHC issues notices to ANF in Abbasi case Tuesday August 29, 2017

Lahore

RAWALPINDI: A division bench of the Lahore High Court (LHC) has issued notices to high-ups of AntiNarcotics Force (ANF) seeking their written response by September 4 in response to a petition filed by PML-N leader Muhammad Hanif Abbasi against the seizure of his bank accounts. The division bench of LHC Rawalpindi Bench comprising of Justice Malik Shahzad Ahmed Khan and Justice Ibad-urRehman Lodhi furnished notices to Director General (DG) ANF, Director Rawalpindi Region, Area Assistant Director and the investigators of ANF in response to two identical petitions filed by Punjab Sports Board Committee Head Muhammad Hanif Abbasi and his brother Basit Abbasi, the owner of pharmaceutical company.

court approves judicial remand of two accused involved in smuggling LAHORE

M IMrAN MehAr

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he special federal court of customs taxation and anti smuggling has approved 14 days judicial remand of two accused, they were arrested in a smuggling case of mobile phones. According to details an accused Noor Gull and Muhammad Tahir were arrested by the customs intelligence authorties of lahore while they were making attempt to smuggle 665 mobile phones from Peshawar to Lahore through motorway. Customs intelligence team at Motorway during routein checking of the vehicles found a suspected car that carried huge quantity of smuggled mobile phones of different companies. Cell phones of Sam-

IrSA releases 284,000 cusecs water he Indus River System Authority (IRSA) Tuesday released 284,000 cusecs water from various rim stations with inflow of 261,400 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1544.30 feet, which was 164.30 feet higher than its dead level 1380 feet. Water inflow in the dam was recorded as 164,100 cusecs while outflow 175,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1233.80 feet, which was 183.80 feet higher than its dead level of 1040 feet whereas the inflow and outflow of water was recorded as 18,300 cusecs and 30,000 cusecs respectively. The release of water at Kalabagh, Taunsa and Sukkur was recorded as 186,300, 183,000 and 97,300 cusecs respectively. Similarly, from the Kabul River a total of 28,000 cusecs of water was released at Nowshera and 19,300 cusecs released from the Chenab River at Marala. –CB Report

sung Apple and Oppo were loaded in that car. Customs team conRiscated all mobile phones and arrested two accused identiRied as Noor Gul and Muhammad Tahir belonged to Peshawar. Customs ofRicials said that worth of the smuggled cell phones is Rs11 million. Customs investigation team produced them before the Customs Court for getting their physical remand to investigate more on the issue on Thursday and got their two days physical remand. Customs investigation team arrested the both accused arrested while making attempt to smuggle that cell phones from Afghanistan to Lahore. Customs investigation team presented them before the court of special judge of the customs taxation and anti smuggling and asked for their physical remand of two days. Customs court handed over them to the customs investigation team for further investigation.

Deputy collector hassan Farid issues oNo in favour of ASo LAHORE

M hAYAt

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he Deputy Collector Customs Adjudication Mohammad Hasan Farid has issued an Order-in-Original (ONO) No. 228229/2017. According to the details, Superintendent Anti Smuggling Organization vide Contravention Report no. 90/2017 dated 8.5.2017 endorsed vide C. No. 4.5.2017 dated 23.5.2017 are that pursuance to an information on 4.5.3027, the staff of Customs Anti-Smuggling Organization Lahore as mentioned above intercepted a cartons of foreign origin cigarette near Niazi Bus Stand Yateem Khana Lahore. On query a person standing near the cartons identiRied himself as Shahid Mehmood son of SaRi Kher Din resident of House No. 402, Block –A, Sabzazar Scheme, Lahore.

He claimed the ownership of the said cartons and stated that he purchased the foreign origin cigarettes from Shahalam Market, Lahore. Thereafter examination of the said cartons was conducted in the presence of the said person and other witnesses which led to recovery of foreign origin cigarette Milano brand 50 dandas, foreign origin

Benson & Hedges, 900 packets, zafrani patti eight cartons. On demand the said owner could not produce any documentary evidence or otherwise, in support of lawful possession of the above said foreign origin cigarettes and zafarani patthi rather he showed willingness to pay the livable duty and taxes on the intercepted cigarettes.

Fto adjourns hearing of case filed by Secp submits record of Dar’s companies M/s Saleem Steel Mills until next date he Securities and Exchange ited, Hajveri Holdings, Gulf Insurance,

he Federal Tax Ombudsman (FTO) consultant has adjourned the hearing of a case Riled by M/s Saleem Steel Mills against the Regional Tax OfRice (RTO), Gujranwala, until the next hearing. The FTO will hear the case after three weeks. According to the details, FTO Consultant Tariq Yousaf heard the case in which counsel for the appellant argued that the RTO had failed to release the sales tax refund of the last three years

claimed by the company. He said the RTO collecting excessive tax from M/s Saleem Steel Mills for the last two years. He approached the commissioner concerned many times for issuance of refunds but the RTO officials did not pay refunds even after the passage of reasonable time. At the end, the company decided to approach the FTO seeking interference in this case. The counsel appealed the FTO consultant to direct the RTO to clear refund claims. –CB Report

Commission of Pakistan (SECP) has submitted records of companies owned by Finance Minister Ishaq Dar, his wife, two sons and daughter-in-law itothe National Accountability Bureau’s (NAB) Lahore ofRice. The records, required as part of the bureau’s investigation into Dar’s assets in light of the Panama papers verdict, were submitted by SECP Joint Director Ali Adnan to NAB’s combined investigation team. The seven companies are: CNG Pakistan, Spencer Distribution Lim-

HDS Securities, Spencer Pharmacy, and Hajveri Modaraba Management. Records include Form 21, Form 29, certiRicates of incorporation and Memorandums of Association. NAB had requested for the records of Dar’s companies in a letter to the chairman of SECP on August 15. In its July 28 verdict, the Rive-member Supreme Court bench disqualiRied the then prime minister and ordered NAB to prepare and Rile a reference in an accountability court within six weeks against members of the Sharif family and others, including Dar. –CB Report

Advance payments to sugar mills scam sent to NAB

M LAHORE

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inistry of Commerce Wednesday informed Public Accounts Committee (PAC) that matter related to the advance payment of Rs 1.158 billion to six sugar mills had been sent to National Accountability Bureau (NAB)

for inquiry. The ministry revealed in the meeting that bank guaranteed for the only ten percent of the total amount was taken from these sugar mills. The recoverable amount had reached to Rs 2.051 billion by adding markup and interests. Ministry said the advance payments were made to six sugar mills—Abdullah Sugar Mills (Depalpur), Ab-

dullah Sugar Mill, Haseeb Waqas Sugar Mills, TMK Sugar Mills, Seri Sugar Mills and Tandlianwala Sugar Mills—for purchase of sugar in 2008 and 2009. However, Sugar Mills defaulted in delivery of the contracted quantity of sugar, on that TCP Riled a case in Sindh High Court for the recovery. The PAC met here under the chairmanship of Syed Khursheed Shah and attended by

other members including Syed Naveed Qamar, Raja Javed Ikhlas, Shafqat Mehmood, Mahmood Khan Achakzai, Sardar Ashiq Hussain Gopang, Molana Abdul Ghafoor Haideri, Mushahid Hussain Syed Jafar Leghari and Mian Abdul Manan. Secretary Ministry of Commerce Younis Dhaga briefed the body regarding the recovery of amount from the above sugar mills.

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ISLAMABAD

tArIQ DerYA

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ollector Model Customs Collectorate (MCC) Islamabad Dr. Saeed Khan Jadoon said he has a one line policy for his staff that â&#x20AC;&#x153;if someone does the right job will be appreciated but if someone does the wrong will face the consequences, none is above the law.â&#x20AC;? Collector MCC Islamabad talked exclusively with Customs Today at Islamabad. He visited the Dry Port Islamabad for understanding the process of handling the issues and facilities available for the business community. He said he has ordered the Islamabad airport staff for facilitation of passengers who are coming home for celebration of Eid-ulAzha. He asked the Customs staff appointed at the airport not to bother Pakistani families without any big complaint who are coming back to their homeland on the eve of Eid celebration. Talking with CT, he said he met with the importers of telecommunication sector at the MCC Islamabad and promised them to enhance the cooperation and facilitation for them. He also promised the Customs staff at the Air Freight Unit (AFU) to

promote its business activity. The Collector further told CT that he will try his level best to meet the assigned revenue targets for the Financial Year (FY) 2017-18. He vowed to make the Anti-Smuggling Organization (ASO) more effective so that the genuine business can be promoted within the jurisdiction of the MCC Islamabad. Meanwhile, The AntiSmug-

et d he m i a s e ct, h s of g with porter talkin m i e h at the with t sector n o i t a ic them mmun mised o o c r e p l e d t ad an n and lamab eratio s I p o c o c c M he ance t r them to enh ion fo t a t i l i fac

gling Organization of Rawalpindi and Islamabad Directorate received a tip-off that a foreign origin used non-duty-paid Toyota Prado jeep, Model 1999, is parked near Market at Bahria Town Phase-7 Rawalpindi. On a tip-off, the anti-smuggling staff of Directorate Rawalpindi rushed to the Bahria Town and found the Vehicle Toyota Prado parked outside the Market on Double Road. After waiting three long hours, no person came to claim the vehicle. The Anti-Smuggling staff informed the Sihala police station who impounded the vehicle in the presence of the police ofRicials and other witnesses and shifted it to the state ware house, Sector G-12, Islamabad. Meanwhile, Special Car Cell of Directorate General Customs Intelligence and investigation Islamabad has impounded a foreign origin used non-duty-paid smuggled Toyota Land Cruiser Cygnus Jeep worth Rs5.5million. According to details, the special car cell received a tip-off that a non-dutypaid smuggled Toyota land cruiser, Model 2004, with fake registration plate No: BF 8506 Sindh is moving in the area of Sector I-8 Markaz, Islamabad.

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Tuesday, August 29, 2017

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eDItorIAL

call for structural reforms

n official of the United Nations Economic and Social Commission for Asia and the Pacific has said that fast-track structural reforms are critical for investment and realise the potentials of regional trade in Pakistan. She also stressed the need for sustainable development pathways, regulatory and policy frameworks, as prerequisite to maximise the benefits of regional cooperation and integration. However, Pakistan will have to strengthen public finance and create a favourable business environment to achieve higher and robust growth. Pakistan is an integral part of Asia and must strive hard for sustainable development and reduce the multidimensional poverty gripping a major chunk of the population. In the absence of practical steps and structural reforms, the countryâ&#x20AC;&#x2122;s economy hit snags on various occasions in the past and faced structural, fiscal and external imbalances. Low investment,lack of capacity to diversify local products and other evils area also there to haunt potential investors. The official said that a weak implementation track record has complicated the cost of delivery. She also pointed out flaws in the industrial set up which is largely based on the growing demand of products at local levels and has limited scope for exports. The prospects of industry have not been fully exploited and the government is looking for other means to boost foreign exchange reserves. The official has warned against unsatisfactory export performance and trend to maintain foreign exchange reserves through borrowings. The demand for reforms is not new as the international donor agencies have already stressed the government to improve basic structure of tax collection and simplify its procedure. There is also need to minimise the role of bureaucracy in the tax assessment process. There is no dearth of the honest officials, but the presence of black sheep in vital government departments could also not be denied. The government will have to restructure taxations system to bolster not only tax revenues but also enhance the tax base.

Initiatives by State Bank governor A

LAHORE

Dr AFtAB AFZAL

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ccording to newly appointed State Bank Governor Tariq Bajwa, there is a need to establish strong coordination between the central bank and the business community for the promotion of trade and industry. The State Bankâ&#x20AC;&#x2122;s role in regulating the economy and maintaining financial stability is crucial as it is the guard of the national wealth. However, until now this vital institution is marred by monotonous practices and official rigmarole like other departments of the government. The disproportional devaluation of the Pakistani rupee under the

duress of pressure groups has caused tremendous loss to the national economy. The Pakistani rupee has been allowed to melt against dollar and other major and minor currencies of the world for years. Once two Thai bahts were equal to one rupee but now one baht is equal to over three Pakistani rupees. On another note, Egypt went through various tumultuous situations and political chaos but never devaluated its currency. A stable currency is guarantee to stable economy. However, it is good omen that only the current finance minister has ensured stability of the Pakistani rupee, otherwise, the rupee had always been devaluated for short term

gains, which ultimately brought long term losses to the economy. Mr Bajwa as former head of the Federal Board of Revenue and Secretary of Finance Division is well aware of the economic situation and financial health of the country. His admission to the contribution of trade and industry in the economy shows he is serious in developing deep coordination between the State Bank and the business community. It is also commendable that he is visiting various chambers of commerce and industry across the country to coordinate with businessmen and develop practical policies for betterment of the economy. The government is facing various internal and external

challenges, including poor security situation, energy crisis and threats from the United States and India. In a situation of chaos, it will be a big success to keep the financial and economic affairs in running mod. The governor will have to encourage disbursement of easy loans to the local industry to enable it to produce export surplus. The trade deficit is increasing at a fast rate as imports of capital goods have increased. Pakistan has made good progress in small and medium enterprises but the credit goes to individual efforts. However, this sector needs government attention to improve its performance and that is what Mr Bajwa is going to do. Bravo.

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Customs Exports collects Rs 14.6 million KARACHI: The Customs Exports has successfully collected Rs 14.6 million during the first 20 days of August 2017 of the fiscal year 2017-18. Sources told Customs Today that Customs Exports issued 12 show cause notices out of which nine final notices were served on defaulter companies in first 20 days of August. It is necessary to mention here that the Customs Exports successfully collected Rs 38.12 million during the month of July. The Customs Exports ALSO issued show cause notices to one factory in order to collect the evaded tax amount. The customs authorities issued notices to M/s Samama International Company Karachi which is found involved in tax evasion.

FBr investigating suspected tax evasion cases under gift scheme

Tuesday August 29, 2017

National

court sends suspect on physical remand in gold smuggling case

ISLAMABAD

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he Federal Board of Revenue (FBR) is investigating as many as 2785 cases of tax evasion under gift scheme, which is suspected to have been misused for the transfer of money and assets. The issue is already on the table of the Senate Committee on Finance, Revenue and Economic Aﬀairs since July 18, 2017 and would be discussed further by the body during its meeting scheduled on Wednesday, August 23, according to Senate Notification. As per the current laws, gifts are exempted from taxes and that is why it has been suspected that people consider it safe means of transferring money and assets to evade taxes which they would have to pay on normal

transfers. The FBR’s Anti-Money Laundering (AML) cell of the Intelligence & Investigation-Inland Revenue has been investigating the alleged scam under which billions of rupees are suspected to have been transferred without paying taxes. The board is scheduled to brief the Senate Committee on Finance on the latest updates and investigation details of its AML cell. The FBR is also scheduled to brief the committee on the diﬃculties being faced by the importers on the import of solar power generator systems along with the details of exemption given to solar system. The Senate body is also scheduled to take up the issue of alleged manipulation of share prices of Bank of Punjab (BoP) in its meeting. The Securities and Exchange Commission of Pakistan (SECP)would brief the committee on the alleged underwriting of shares along with details of shares purchased and sold by the management and Directors of BoP from January 2015 to March 2017.

KARACHI

M B rANA

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ustoms Court Judge Syed Faiz Rasool Rashdi has sent a suspect, Muhammad Saleem Garman, to the Customs Department on physical remand till August, 2017. Garman was booked in a case of smuggled gold and memory cards worth Rs 25,485,880. During the hearing, investigation ofRicer produced the suspect before the court and informed that the suspect was facilitator in this case and the prosecution needs further investigations, therefore, the court may send him on physical remand. It needs to be pertained here that suspects Muhammad Imran son of Muhammad Farooq Patel, Anila Muhammad Imran wife of Muhammad Imran, Maheen Patel daughter of Muhammad Imran (father, mother and daughter) are also on physical remand till August, 2017. According to the prosecution, on credible information, officials of the customs department intercepted them on Jinnah International Airport Karachi, who were

coming from Dubai, and recovered gold jewellery 4900 grams valuing Rs27,785,000 and 24500 memory cards valuing Rs 27,00,880. Court also directed investiga-

tion officer to produce them on next date of hearing along with progress report. According to the prosecution, case was registered for violation of under section 2(s) and 16 of the Customs Act, 1969

punishable under clauses (8) (89) of section 156 (i) ibid read with baggage rules notified vide SRO666(1)/2006 dated 28/06/2006 further section 3 (iii) of Import & Export (Control) Act 1950.

Ipr enforcement seizes counterfeit fragrance bottles RAWALPINDI

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he Directorate of IPR Enforcement South has seized a consignment of empty fragrance bottles along with the ancillary components, which was imported from China by M/s Ashraf Traders as the bottles were carrying well-known marks. M/s Ashraf Traders imported 276,604 empty fragrance bottles in addition to their parts such as bottle caps, spray-pumps from China and sought clearance through MCC Appraisement East. Deputy Director Hina Gul, on the directives of IPR Enforcement Director Aamir Rasheed Shaikh, held up the goods on grounds of containing counterfeit/infringing goods, a conclusion arrived at by comparing the packing list Riled by

the owner of the goods alongside the goods declaration, and the images of empty class bottles uploaded by the Customs staff after examination of the consignment. The samples of the infringing goods were requisitioned from the

clearance collectorate and the trademarks oriented thereon compared with the corresponding trademarks in the IPO recordation database, the repository of trademarks registered in Pakistan. The seized bottles carried infringing marks such as Polo

Ground, which is similar to original mark Polo; Donhill, which is similar to original mark Dunhill; Desire, which is similar to original mark Dunhill Desire; Huge/Boss, which is similar to original mark Hugo Boss; La Cost, which is similar to original mark Lacoste and Cold Water, which is similar to original mark Cool Water. Acting within their domain, Directorate of IPR Enforcement sent the images of infringing goods to the respective right-holders in term of Rule 682(3) of the Customs Rules, 2001, to solicit their response and willingness to initiate enforcement action against the owner of the goods. the right-holders conRirmed the infringing goods to be counterfeit and authorized enforcement action. Subsequently, Directorate proceeded to individually examine each case including the registration particulars of all the trademarks.

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Superintendent Saifullah to retire in March 2018 Tuesday August 29, 2017

National FBr extends suspension period of Appraising oﬃcer Qamar

ISLAMABAD: Saifullah Khan, a Pakistan Customs service officer of BS-16, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Superintendent, Model Customs Collectorate, Quetta will stand retired from the government service on March 5, 2018.

Syed Murad Ali Shah assume charge as Second Secretary

ISLAMABAD

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ISLAMABAD

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he suspension period of Qamar Jamal, a Pakistan Customs Service officer of BS-16, has further been extended. The competent authority, in continuation of Board’s Notification No.1505-C-III/2017 dated 18.05.2017, extended suspension period of the officer, posted as Appraising Officer (BS-16), Appraisement-West, Karachi for a further period of three months with effect from August 08. Meanwhile, Yousif Hyder Shaikh, a BS-20 officer of Inland Revenue Service, has assumed the charge as Commissioner-IR. The officer, in pursuance of Board’s Notification No. 2119-IR-I/2017, dated 08.08.2017, of the post of Chief (Revenue & Operations), Federal Board of Revenue (HQ), Islamabad with effect from August 9, 2017 and took the charge of Commissioner-IR (Zone-III), Corporate Regional Tax Office, Karachi on August 15.

wilayat khan assumes charge as Secretary ilayat Khan, an officer of Inland Revenue Service, has assumed the charge as Secretary. The officer, in pursuance of Board’s Notification No. 2205-IR-I/2017 dated 17.08.2017, relinquished the charge of the post of Secretary (OPS) (BS-18), FBR (HQ), Islamabad with effect from August 17 and took the charge of the post of Secretary (BS-19), FBR (HQ), Islamabad on the same date. Meanwhile, Shah Bano GM Khan, a BS-20 officer of Inland Revenue Service, has assumed the charge as Commissioner-IR. Shah Bano, pursuing the Board’s Notification No. 2123-IR-I/2017, dated 09.08.2017, took the charge of the post of Commissioner-IR (IP/TFD) at Regional Tax Office II, Karachi with effect from August 11.

yed Murad Ali Shah, a BS-18 ofRicer of Council of Islamic Ideology, has assumed the charge as Second Secretary. The ofRicer, in pursuance of Board’s NotiRication No. F.1(271)/2002-Admn-CII/892 dated 10.07.2017, took the charge as Second Secretary, Federal Board of Revenue (Hq), Islamabad with effect from October 07, 2017. Meanwhile, Muhammad Irfan, a BS-18 ofRicer of Inland Revenue Service, has promoted to BS-19. The ofRicer, in pursuance of Board’s NotiRication No.2205-IR-I/2017 dated 17.08.2017, relinquished the charge of the post of Additional Commissioner-IR (OPS) (BS-18), Corporate

Regional Tax OfRice, Lahore w.e.f 17.08.2017 and assumed the charge of the post of Additional Commissioner-IR (BS-19), Corporate Regional Tax OfRice, Lahore on the

same date. Meanwhile, Abdul Hameed, a BS-19 ofRicer of Inland Revenue Service, has relinquished the charge as Chief (OPS). The ofRicer, in pursuance of Board’s NotiRi-

cation No. 2119-IR-I/2017, dated 08.08.2017, relinquished the charge of the post of Chief (OPS) (IJP), Federal Board of Revenue (HQ), Islamabad with effect from August 15.

gwadar customs seizes big quantity of expensive electronic items T

KARACHI

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he Collectorate of Gwadar Customs team has conRiscated a big quantity of nonduty-paid electronic items like LED TVs, LED monitors, cable wires, Handy-cam-movie cameras and other items worth Rs 2.9million. On a tip-off regarding the possible smuggling of various electronic goods, including non-duty-paid computer accessories in Bara area, the Gwadar Collector constituted a team of Customs Anti-Smuggling Organization (ASO) under the supervision of Customs Preventive Inspector Wasim Ahmed Khan. The team, during a search operation, intercepted a truck with registration No: BK-7218 which was going from Gwadar to Karachi. During the search Operation, the cus-

toms team found 20 pieces of 36 inches LED TVs, 50 LED Monitors, 20 rolls of cable wire, 30 pieces of German made Handy-cam, a big numbers of computer rams, 500

key boards and mouse. The team impounded all the items including a truck being used to smuggle these goods and arrested two smugglers identiRied as Waris Shah and Driver

Gul Muhammad, residents of Gwadar. An FIR has been registered against the accused. Sources said this is the 9th raid during the month of August.

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10% WHT on over Rs1,000 internet, telephone bills KARACHI: Federal Board of Revenue (FBR) has said that telephone and internet subscribers receiving monthly bill over Rs1,000 can adjust 10 percent withholding tax against their total tax liability. According to Withholding Tax Card 2017-18, the FBR notiﬁed withholding tax rates for telephone and internet users as deﬁned under Section 236 of Income Tax Ordinance, 2001. The FBR said that there will be no withholding tax on monthly bill up to Rs1,000. However, the withholding tax rate will be 10 percent on bill exceeding Rs1,000. The FBR further said that persons preparing telephone/internet bill or issuing/selling prepaid card for mobile phones/internet shall collect the withholding tax from telephone subscribers, internet subscriber, purchaser of internet prepaid cards.

FBr ‘delays’ action against money launderers for one year ISLAMABAD

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he Federal Board of Revenue (FBR) has reportedly delayed action for more than a year against the money launderers, pointed out by the State Bank’s Financial Monitoring Unit (FMU). The SBP’s FMU accused more than 330 of money laundering, out of which 80 per cent are business tycoons and 20pc influential politicians. The FMU generates monthly reports about suspicious transactions which are shared with the Federal Investigation Agency (FIA), National Accountability Bureau (NAB), Anti-Narcotics Force (ANF), and Customs Intelligence. In June last year, the government extended the scope of the Anti-Money Laundering (AML) Act, 2010, to the In-

telligence and Investigation (I&I) Directorate of Inland Revenue. As a result, the directorate received more than 210 suspicious transactions reports (STRs) between July 2016 and June 2017 related to tax and various duties. Other cases were sent to the FIA, NAB and ANF for investigation. The I&I directorate can initiate proceedings under the AML Act. If a person admits to having evaded tax, he or she will have to deposit the due taxes in the respective regional tax oﬃce (RTO). However, in case the person is not willing to pay the tax, criminal proceedings can be started against him/her under the law. So far, according to the source, criminal proceedings were only initiated in two Karachi-based cases. In one case, the FBR recovered an amount of Rs6.204bn in a court of law. Interestingly, out of the 330 individuals more than 105 are not even national tax number (NTN) holders. Despite this, the source says, the FBR is reluctant to initiate probe into these potential cases of tax evasion. –CB Report

National

FBr uncovers mis-declaration of rs39.405 million by M/s charisma catering

Shc directs customs to hand over vehicles to owners KARACHI

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he Sindh High Court (SHC) has ordered Customs Intelligence to hand over two vehicles to the owners till Sept 7. A SHC appellate bench, comprising Justice Munib Akhtar and Justice Zulfiqar Ahmed Khan, issued orders during hearing of two separate but identical petitions. In one petitioner, petitioner Muhammad Mohsin claiming to be owner of a Toyota Crown, Super Saloon, model 2010 bearing registration No BFF 879, Karachi maintained that he purchased the vehicle from an auto car seller. He doesn’t have the documents pertaining to import as he was not the importer. In another petition filed by Muhammad Mansoor owner of a Toyota Prado Land Cruiser (TX) similar plea was raised by Ms Dil Khurram Shaheen advocate, counsel for the petitioner. The counsel said that petitioner purchased the vehicle from “The Wheel Motors”. Both the vehicles were taken into custody by Customs Intelligence for being smuggled vehicles. The bench after hearing the sides ordered the respondent Customs Intelligence to hand over the vehicles to the claimants/petitioners as an interim arrangement till disposal of the petitions.

ISLAMABAD

M FAIZAN

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he Directorate General, Customs Intelligence and Investigation, Federal Board of Revenue Islamabad has detected a case of tax evasion through mis-declaration amounting to Rs39.405 million by M/s Charisma Catering, Rose Arcade, Sector G-11, Markaz Islamabad. According to details, Director, Directorate of Intelligence and Investigation FBR, received a tip-off that M/s Charisma Catering Islamabad has imported polyester and viscose fabrics of assorted colours from China at Dry Port Islamabad and evaded duties and taxes payable thereon by claiming undue beneRit of the SRO 1125 (1) 2011 dated 31.12.2011. In order to determine the veracity of the information, website of the FBR was visited which revealed that name of the importer did not appear on Active Taxpayer List (ATL). The Regional Tax OfRice Islamabad was requested to conRirm the status of the importer. The RTO Islamabad conRirmed that the importer was non-active since 25th of May 2015. This fact disentitled the

Tuesday August 29, 2017

M/s Charisma Catering Islamabad from the Sales Tax in terms of SRO 1125 (1) 2011 as amended vide SRO 154 (1) 2013. Under the said notiRication, entitlement to Sales Tax exemption at import stage is subject to the condition that name of the importer should be on the Active Taxpayer List. Therefore the importer is liable to pay sales tax @ 17% instead of 3% besides Additional Sales Tax and Income Tax.

Therefore the importer, by way of mis-declaration, succeeded to avail the tax concession or exemption otherwise not available to him. This has caused the treasury a loss of revenue amounting to Rs39.405million on account of legitimate taxes in 13 GDs. Importer has committed the offence of the mis-declaration in violation of the provisions of Section 32 (1), 32(2) and 79 (1) of the Customs Act-1969.

customs tribunal orders to recover evaded amount

LAHORE

SAJID NAwAZ

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ustoms Appellate Tribunal has ordered the customs department to recover short paid duties and taxes from M/s Wateen Wimax Private Limited in case Riled against Collector of Customs (Adjudication), Customs House Lahore and Collector of Customs, Customs Collectorate (Preventive) Customs House Lahore. According to the details, Member Technical Imran Tariq heard the appeal filed by M/s Wateen Wimax Private Limited. After hearing the arguments in details, the

member of Customs Appellate Tribunal declared that all arguments submitted by the appellant are considered by the tribunal and court did not agree with the contention and find no merit in the appeal and directed the respondent to recover the duties and taxes short paid by the appellant. According to the details of the case, during the course of audit, Deputy Collector Customs Preventive, Air Freight Unit, Allama Iqbal International Airport pointed out that software recorded on optional media has been mis-declared under the PCT 8523. 8030 instead of PCT heading 8523. 4910 CD @ 10 percent.

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World Customs

China to probe Brazilian chicken imports

BEIJING/SAO PAULO: China has launched an antidumping investigation into imports of Brazilian broiler chicken in another blow for the South American country’s meat industry and threatening more than $1bn of exports annually. The investigation comes after a complaint from China’s domestic industry that Brazil, its top chicken supplier, has been selling its broilers below market value. Any move to penalise imports would hurt Brazil’s protein industry which has already been tarnished in 2017 by a food safety scandal.

Tuesday August 29, 2017

german customs intercepts package with 20 snake heads

rosneft wins $2.3 billion court battle MOSCOW

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BERLN

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erman customs ofRicers say they have found and destroyed 20 rotten snake heads found in a package that had arrived from Nigeria. A spokeswoman for Munich’s main customs ofRice said Wednesday that ofRicers discovered the snake parts when they X-rayed a three-kilogram package last week. Marie Mueller said that when ofRicers then opened the parcel the stench of the rotten snake heads was “simply overwhelming and unbearable.” Mueller said the snake heads were immediately burned to prevent the spread of possible diseases. She said the customs ofRice has repeatedly intercepted packages from western Africa with snake heads which are sent to Germany as a delicacy.

turkey’s gross debt stock stands at $231.5 billion he Turkish government’s gross debt stock stood at 817.1 billion Turkish liras (nearly $231.5 billion) at the end of July, the Treasury said Monday. In July, the gross debt stock the outstanding debt of public sector institutions, the Central Bank, private companies and households increased by 14.8 percent, compared with 711.8 billion Turkish liras (around $236.5 billion) of debt stock in the same month in 2016. According to the Turkish Central Bank, the U.S. dollar/Turkish lira exchange rate was 3.53 at the end of last month while one dollar was traded for 3.01 Turkish liras on July, 29, 2016. The Treasury noted that most of the debt 504.6 billion Turkish liras ($143 billion) was in local currency while 312.5 billion liras ($88.5 billion) of debt were denominated in foreign currency. –CB Report

Meanwhile, Germany recorded a budget deRicit in July as growing public expenditure outweighed a rise in tax revenues, an ofRicial monthly report showed Monday. The German government posted a loss of 8.4 billion euros (9.91 billion U.S. dollars) between January and July, threatening to undermine the country’s global reputation for

Riscal stability. Monthly Rluctuations make it currently impossible to foresee whether the government will still achieve its annual objective of not increasing the debt. German Rinance minister Wolfang Schaeuble has succeeded in running consecutive budget surpluses since 2014, a policy that is not uncontroversial amongst economists.

china’s July gasoline exports rose to third-highest level since 2000

hina’s gasoline exports in July rose 5.9 percent from a year ago to the third-highest monthly level since at least 2000 while diesel exports remained high, customs data showed. China’s July gasoline exports rose to 1.02 million tonnes, according to data from the General Administration of Customs. That is a third higher than exports in June and near to the 1.1 million tonnes exported in June 2016 that was the highest since

at least 2000. China’s diesel exports in July fell 8.8 percent from a year ago to 1.4 million tonnes, the data showed, but they increased from 1.31 million tonnes in June. Analysts have forecast China’s diesel demand to increase slightly this year after a rare decline last year, thanks to the country’s recovering foreign trade. Kerosene exports last month fell 3.1 percent to 1.06 million tonnes, the data showed. –CB Report

ussia’s state-run oil company Rosneft has won a $2.3bn claim for damages against the private conglomerate Sistema, in a dispute over valuable oil assets that has resurrected fears over the country’s attitude to private ownership. The longrunning battle for control of Bashneft, a regional oil producer, has chilled investor sentiment towards the country and drawn comparisons with the Russian state’s investigation and ultimate expropriation of Yukos, the private oil major, more than a decade ago. Rosneft, controlled by Igor Sechin, a former aide to Russian President Vladimir Putin who remains close to the Kremlin, bought Bashneft from the state last year after it was seized from

Sistema. Vladimir Yevtushenkov, the conglomerate’s owner, was placed under house arrest. The case has reinforced Mr Sechin’s public reputation as a confrontational and pugnacious business titan, and one of the country’s most powerful figures. “This is an example of Sechin’s broad capabilities and his aggressiveness,” said Vladimir Milov, a former Russian deputy energy minister. “He wants at least a partial ‘refund’ from Mr Yevtushenkov, and uses administrative pressure to achieve that.” Mr Sechin has previously told the FT that he pursued Rosneft’s claim in a correct manner by going to court. In the lawsuit, Rosneft demanded Rbs170.6bn ($2.9bn) in compensation for what it depicted as an illegal reorganisation of Bashneft by Sistema that stripped assets from the company before its privatisation. Measured by market capitalisation, Bashneft’s value rose under Sistema’s ownership.

Iran budget deficit estimated at $9.6b ead of Planning and Budget Organization Mohammad Baqer Nobakht expects the government to run up a 370-trillionrial ($9.6 billion) budget deRicit in the current Riscal year (March 201718). He said on Wednesday that the government predicts 89% of the 3.46 quadrillion rials the parliament approved in the budget law for this year as “general revenues” will materialize by the end of the Iranian year, IRNA reported. This year’s budget assumes a $50 per-barrel price for crude, whose exports account for a majority of the government’s earnings. However, Nobakht said, the gov-

ernment has practically sold each barrel of oil for $47. President Hassan Rouhani reappointed Nobakht as the head of Planning and Budget Organization of Iran on Sunday. The Central Bank of Iran’s latest report on the government’s balance sheet indicated that earnings stood at 236.4 trillion rials ($6.2 billion) for the Rirst quarter of the current Riscal year (March 21-June 21), up 9.6% yearon-year. About 53% of the projected revenues for the three-month period were materialized. Spending stood at 548.8 trillion rials ($14.4 billion) in Q1, up 48.8% over the Rirst quarter of a year before. –CB Report

philippines debt prepayments climb 35% to $2b

D MANILA

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ebt prepayments by Philippine borrowers including the national government rose 35.1 percent in the Rirst four months, resulting in the further weakening of the peso against the dollar, the Bangko Sentral ng Pilip-

inas (BSP) reported. Prepayments on foreign debt by public and private Rirms reached $2.01 billion from January to April, $523 million higher than the $1.49 billion recorded in the same period last year. The frontloading of debt payments is a continuing process for the national government and the private sector. Both the government and private companies may choose to prepay their for-

eign currency obligations depending on the exchange rate. The national government and private corporations started prepaying their foreign debt after the Philippines settled its obligations to the International Monetary Fund (IMF) in 2005. Francisco Dakila Jr., managing director at the BSP’s Monetary Policy Sub-Sector, said the higher debt prepayments in the Rirst four months has contributed to the

depreciation of the peso against the dollar. “When you prepay, you demand dollars to pay your indebtedness. Therefore the peso-dollar rate is determined by supply and demand. It’s an additional demand for dollars, but the purpose of that is to lower your indebtedness,” he said. The peso has emerged as the weakest performing currency in the region as it breached the 51 to $1 level this month.

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Vizag port on growth trajectory VISAKHAPATNAM: Visakhapatnam Port Trust (VPT) is taking steps to transform port as a world-class port. With the complete augmentation of the cargo equipment, rebuilding the age-old berths, adopting new technologies and ensuring easy doing business, Visakhapatnam has emerged as a best harbour on the East Coast. After the ﬁve long years of transformation, the port is now registering new heights in its marathon cargo handling services in India. The port is again on the growth trajectory after a lapse of nearly ﬁve years. It handled 61.02 million tonnes in 2016-17, achieving a growth of seven per cent and an incremental cargo of four million tonnes.

krishnapatnam port starts transshipment, vies with colombo, S’pore ndhra Pradesh’s Krishnapatnam Port has become the second port on India’s eastern coast after Vizag to have trans-shipment facility. Krishnapatnam Port Company Ltd’s (KPCL) plans to become a transshipment hub by catering to the ports on the eastern coast. A transshipment terminal is a hub which will attract smaller feeder vessels with containers that then get loaded onto larger ships for transportation to final destinations abroad. Exporters and importers benefit hugely as larger vessels bring about economies of scale and lower the cost of operations. At present, around one fourth of total containers from India are trans-shipped through ports outside the country, mainly Colombo in Sri Lanka and Singapore. Apart from these locations, Jebel Ali in the United Arab Emirates, Salalah in Oman and Port Klang in Malaysia are

other ports used for trans-shipment. Almost 78% of total containers shipped from the ports on the eastern coast are trans-shipped either through Colombo or Singapore. Hence, there is a need for establishing trans-shipments hubs within the country. “We have also started trans-shipment of containers. On the east coast of India what happens is that most of the containers that either come into India or go out of the country are not going directly to the destinations, they are trans-shipped at either Colombo or Singapore. It’s a great national loss,” KPCL chief executive Anil Yendluri told DNA Money. Lack of large ports with trans-shipment facility is also a drain on foreign exchange as for transshipment at other ports like Colombo or Singapore, the cost comes to around $100-300 per container. –CB Report

Ports & Shipping

Sc ports container volume up 13% strongest on record WASHINGTON

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oday South Carolina Ports Authority announced calendar year-to-date container volume increases of 13 percent and the strongest July on record. Since the calendar year began, SCPA has handled 1.3 million twenty-foot equivalent units (TEU), compared to 1.14 million TEUs during the same period last year. The Port moved 182,411 TEUs in July, breaking the previous record of 177,265 TEUs achieved in July 2016. Last month was also a record July for pier container volume, or box volume. SCPA handled 103,319 boxes at the Wando Welch and North Charleston terminals, exceeding the July 2016 record of 100,366 pier containers. “SCPA handled record container volumes in July in spite of model year transitions in the automotive industry,” said Jim Newsome, SCPA president and CEO. “We look forward to continuing this momentum as Riscal

year 2018 progresses and expect to see fairly strong volumes this fall.” In the non-containerized cargo market, Charleston handled 42,420 tons of breakbulk cargo in July. Calendar year to date, the Port has handled 471,961 tons. Inland Port Greer handled 7,011 rail moves in July, pushing calendar year-to-date volume at the facility 31 percent higher than last year. Since January, 74,700 rail moves were handled compared to 56,870 during the same period in 2016. Having been named one of six “new start”

projects and receiving $17.5 million in construction funding in the U.S. Army Corps of Engineers (USACE) Fiscal 2017 Work Plan, the harbor deepening to 52 feet continues to move forward toward construction this fall. The USACE solicited bids for the Post 45 Charleston Entrance Channel Maintenance and New Work Dredging – Contract One in June, and the apparent low bidder for the contract is Great Lakes Dredge & Dock Company, LLC, with a bid of $47,197,150.

Tuesday August 29, 2017

global container port volumes up 6.7% in h1 2017 nderscoring an upturn in container shipping global boxport volumes grew 6.7% in the first half of 2017, and forecast at 6% for the year as a whole by Alphaliner. Survey of over 250 ports by Alphaliner showed containers volumes grew 7.4% in the second quarter having registered 5.9% in Q1 giving an a first half average of 6.7%. “The momentum is expected to continue in the second half, with the latest figures for July also showing very strong figures,” the analyst’s weekly report said. Alphaliner is forecasting full year growth of 6%, the highest since 2011. South Asia reported the highest rate of throughput growth in the first half with 9.3%, while the key areas of the US and China posted growth rates of 8.2% and 8.4% respectively. In the top 20 largest ports Chinese ports registered the highest growth rates the first half of the year with Ningbo-Zhoushan growing at 14.4% to 12.4m teu, Guangzhou at 11.7% to 9.6m teu, and Hong Kong 10.5% to 10.2m teu. Only two ports in the top 20 registered a drop in volumes in H1 2017. –CB Report

port of Newcastle fails to escape Accc clutches WASHINGTON

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he full court of the Federal Court has reinforced the Australian Competition and Consumer Commission’s (ACCC’s) and Australia Competition Tribunal’s (ACT’s) powers over port charges. In a unanimous decision, the Federal Court rejected a Port of Newcastle appeal against the ACCC’s decision to make its operations a ‘declared service’, in a case coal exporter Glencore brought after the newly privatised port raised service prices sharply. The outcome means the ACCC retains oversight and regulation of port operations as they affect charges. The case has been watched carefully by the trucking, freight and port container supply chain sectors, which are awaiting the ACCC’s decision on whether

it will intervene over stevedores’ charges for container access at ports. “Since its privatisation for $1.75 billion in 2014, the Port of Newcastle has revalued its assets and increased shipping fees by in excess of 60 per cent without any change in the nature or quality of service provided,” it says. “The introduction of a reasonable regulatory constraint is critical for all users of monopoly-owned infrastructure.” The decision is a blow to Port of Newcastle, also known as Port of Newcastle Operations (PNO), which argues that service charges have failed to keep up with inRlation over the past 20 years and which has warned of possible “unintended consequences” for other infrastructure providers. It could also “introduce a new layer of costly regulation”. “This is a disappointing outcome, not just for Port of Newcastle but potentially for many

other major infrastructure providers across Australia,” CEO Geoff Crowe says. “It could have wideranging implications for the profitability and value of nationally signiRicant assets. His company is still reviewing and assessing the implications and will complete that process before commenting further. “Port of Newcastle will continue to engage proactively with its customers and the ACCC on this matter,” the company says. “Port of Newcastle has a commercial imperative to maximise trade volumes through the port and to ensure continued access for customers. “Its business depends on its customers’ success. Port of Newcastle pricing remains competitive with other Australian ports.” The Australian Logistics Council (ALC) also noted the decision’s potential, saying it could have significant implications across the freight logistics industry.

“Today’s Federal Court decision seems to point to increasing ACCC involvement in pricing and access issues at ports,” ALC MD Michael Kilgariff says. “If that is going to be the case, then it is imperative that the ACCC ensures it is properly resourced with personnel who have had exposure to and experience in dealing with the complex and unique nature of these infrastructure assets,” he said. “Any regulatory role played by the ACCC in the freight logistics sector must be Rit-for-purpose. “Pursuing a ‘template’ approach to regulation by merely imposing regulatory frameworks designed for other industries will do nothing to enhance supply chain efRiciency. “Indeed, it could well lead to inappropriate cost structures that have serious consequences for supply chains and the proRitability of signiRicant freight infrastructure. “

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SBP talent hunt coaches training camp started LAHORE: The first phase of Punjab Chief Minister Talent Hunt Programme coaches training camp started here on Wednesday at Punjab Stadium under the auspices of Sports Board Punjab. In the first phase, the training process has started for 180 coaches of five games, including cricket, hockey, football, table tennis and badminton. Addressing the inaugural ceremony of coaches training camp, Director General Sports Punjab, Zulfiqar Ahmed Ghumman said the high-profile coaches training camp has been launched to raise the standard of sports coaching in the province. “We can’t produce world class sports stars without having properly trained coaches.

Tuesday August 29, 2017

Business

Dar to attend two events in urumqi ISLAMABAD

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ederal Minister for Finance, Senator Mohammad Ishaq Dar, on the invitation from his Chinese counterpart Xiao Jie, will attend the inaugural ceremony of the Central Asia Regional Economic Cooperation Institute (CI) and the 2nd CAREC Think Tanks Development Forum to be held on September 7-8, 2017 at Urumqi, China. Xiao Ji, in a letter addressed to Minister Dar, extended him invitation for the two events. He also appreciated Ishaq Dar’s continued and strong support for the CAREC Institute. He added that due to the

three human smugglers arrested LAHORE

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commitment and hard work from all the members of CAREC and the Asian Development Bank, the agreement establishing the Institute had become a reality. The In-

gas companies to spend rs 64.2b on reinforcing transmission network

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IA teams arrested three human smugglers on the charge extortion of money from citizens. According to FIA oﬃcials, accused Ghulam Raza, resident of chak 219-JB, extorted Rs 930,000 from a citizen, Muhammad Usman, on the pretext of sending him to England. But he neither sent him abroad nor returned his money.Similarly, a citizen Sarfraz Ahmad filed a complaint against accused Sahil Mughal, resident of Sargodha Road, that Rs 1.35 million was taken from him for sending him to Dubai.

stitute would be an inter-governmental organization. Finance Minister Ishaq Dar has thanked his Chinese counterpart for the invitation. Meanwhile, The State Bank

of Pakistan (SBP) and the Federal Board of Revenue (FBR) have furnished details of bank accounts and tax returns of ousted prime minister Nawaz Sharif, his children and Finance Minister Ishaq Dar to the National Accountability Bureau (NAB), The Nation has learnt. Sources claimed that millions of rupees were transferred to bank accounts of Hussain Nawaz and Hassan Nawaz when they were studying abroad. The sources also claimed that funds were also transferred to Maryam Nawaz’s accounts from Pakistan. They claimed that the NAB’s combined investigation team has also got access to bank account details of Maryam Nawaz’s son who has recently completed his graduation from abroad.

ISLAMABAD

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ui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) would spend around Rs 64.209 billion on upgradation of transmission and distribution network in their respective areas during the current Riscal year. “The gas utility companies have planned to invest Rs 12,702 million on transmission projects, Rs 43,045 million on distribution projects and Rs 8,462 mil-

lion on other projects bringing the total investment of Rs 64,209 million,” ofRicial sources told APP. Besides, the companies would provide approximately 414,723 new gas connections during the period, while National Assembly Standing Committee on Petroleum and Natural Resources has recently recommended that the two state companies – SNGPL and SSGCL – would give two million gas connections during the Riscal years 2017-18 and 201819. Answering a question, the sources said SNGPL issued 1.5 million new connections since the Pakistan Mus-

lim League-Nawaz (PML-N) government came into power in 2013, and hopefully the Rigure would reach 2.5 million till completion of its tenure. Whereas, new connection on SSGCL network is granted without any delay and “there is almost no such pendency,” they added. The sources said with the import of LiqueRied Natural Gas (LNG), the energy situation had improved across the country, which is the cheapest alternative fuel and the only available remedy to meet the country’s energy needs especially when the existing natural gas reserves were depleting.

NAB to initiate inquiry into gwadar land scam QUETTA

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he National Accountability Bureau (NAB) has announced to initiate inquiry into the irregularities committed in allotment of valuable state land in Gwadar. Irregularities worth Rs70 billion had been had been detected in costly state land of Gwadar where influential persons had got allotted 3,167 acre land through fraudulent means. “Some persons having the patronage of influential people allegedly got allotted some 3,167 acre of expensive state land worth Rs70 billion in Gwadar, which is central to CPEC,” a NAB press release explained. At the very initial state of inquiry into scam of Gwadar state lands, it was revealed that the private persons in collusion with some influential people and revenue authorities got transferred about 12,000 acres of land in Gwadar fraudulently, notwithstanding, the state land was restored to its earlier position after the scandal unveiled. Later, High Court also upheld the decision of settlement officer and directed SBMR court for hearing and determining of necessary boundaries of the land.

Secp conducting probe into alleged Bop share manipulation ISLAMABAD

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he Securities and Exchange Commission of Pakistan (SECP) informed the Senate Committee on Finance, Revenue and Economic Affairs that it had started probe into case of alleged manipulation of share prices of Bank of Punjab (BoP) through underwriting. The Senate Committee was

chaired by Senator Saleem Mandviwalla while among others, it was attended by senators Muhammad Mohsin Khan Leghari, Ayesha Raza Farooq, Kamil Ali Agha, Saud Majeed, Osman Saifullah and Mohsin Aziz as well as representatives of Federal Board of Revenue (FBR), SECP, BoP and other stakeholders. The SECP representatives informed the committee that the commission would submit a detailed report to this body after conducting

investigations into the matter. However they did not give any timeline for submission of the report on the plea that the commission have to go into details to check whether there was any manipulation of shares or not. As many as ten thousand individual and institutions have traded shares since May 2016 to March 2017, the period during which the alleged share manipulation took place, so the commission would take time to investigate.

Had it been just violation of law, it would have been done easily and within a short period of time, they observed. The SECP representatives also informed the senate body that as many as 134 employees of BoP were engaged in share business of the bank, out of which some earned proRit, some loss while others did not sold their shares. The SECP representative said that the complainants, who had

been alleging share manipulation in BoP, would be given full chance to come to SECP and provide record of any misdeed, if any. On the issue of alleged money laundering through gift arrangements, the Federal Board of Revenue (FBR) informed the committee that it was routine practice of the board to examine different cases for tax evasion. However, this does not mean that all such cases were related to money laundering.

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Central Bank of Iran puts inflation at 10% TEHRAN: The average goods and services Consumer Price Index for urban areas in the 12 months ending August 22, which marks the end of the Iranian month of Mordad, increased by 10% compared with last year’s corresponding period, the latest report released by the Central Bank of Iran showed. CBI had put the inflation rate for the preceding month of Tir, which ended on July 22, at 10.3%. The overall CPI (using for the first time the Iranian year to March 2017 as the base year) stood at 107.7 in Mordad, indicating a 0.2% increase compared with the previous month.The index registered a year-on-year increase of 8.6% compared with the similar month of last year. The CBI report came after the Statistical Center of Iran put Mordad inflation at 7.7%. The new CPI report is calculated for the first time based on the fiscal 2016-17 base prices. Previously, the base year was the fiscal 2011-12.

Fruit exporters hail proposed revival of phDec KARACHI

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Tuesday August 29, 2017

Chambers

LABArD & Faysal Bank join hands to serve special people

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ederation of Pakistan Chambers of Commerce and Industry (FPCCI) has supported proposed revival of Pakistan Horticulture Development and Export Company (PHDEC). Regional Chairman of the FPCCI Horticulture Exports Committee, Ahmad Jawad in a statement here on Wednesday appreciated the interest taken by the federal minister of commerce in revival of the defunct organisation and help strengthen fruits exports of the country. “PHDEC can definitely help boost exports of horticulture products, provided proper and regular vigil was kept on the performance of the company,” he said. The FPCCI official said, as per decision of the

Ministry of Commerce, the meeting with main agriculture and horticulture exporters must be convened to work out recommendations for PHDEC revival and drawing a roadmap for increasing fruit exports. Ahmad Jawad said that PHDEC, as per its objectives, ought to work on improvement of quality by ensuring strict regulatory mechanism, preshipment inspection ensuring reliability for Pakistan’s fresh produce exports in the international market. The Regional Chairman, FPCCI’s Horticulture Exports Committee suggested formation of a task force to help raise exports of mango, kinnow and other fruits and also to make recommendations for the revival of PHDEC. In particular context of kinnow export for the coming season (2017-18), Jawad crop is not bumper this year due to sudden hail storms and less rains in the area.

LAHORE

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ahore Businessmen Association for Rehabilitation of Disabled (LABARD) and Faysal Bank have joined hands to serve the special people in a better way. Faysal Bank has also donated a modern vehicle to LABARD for easy movement of the special children getting education & training under the umbrella of LABARD. Federal Commerce Minister & LABARD President Pervez Malik, President Faysal Bank Yousaf Hussain, LABARD Secretary General Muhammad Saeed Khan, Bushra Aitzaz Ahsan, Naghmana Javed and Ali Pervez Malik spoke on the occasion and praised the gesture of the management of Faysal Bank. Expressing his views, President Faysal Bank Yousaf Hussain said, “We recognize that we cannot have a healthy and growing business unless the communities we serve are healthy and sustainable. We are committed to improving the quality of life in the communities where we do business and have realigned our

community investment priorities to be reRlective of and responsive to the global and local nature of our business. We are committed towards LABARD’s initiative and will work hands-on with the management to complete this project.” Federal Commerce Minister & LABARD President Pervez Malik said that LABARD is focusing to further extend the scope of its services. He said that presently, the LABARD is not only establishing camps in various parts of the City for the registra-

tion of disabled persons but is also focusing on building the conRidence of the people who are suffering due to some disability so that they could be able to face all challenges boldly. Pervez Malik said that the LABARD Qarz-eHasna scheme had also given encouraging results and a large number of disabled persons are running their small businesses successfully. The LABARD President said that the Lahore Businessmen Association for Disabled persons has extended training to thousands of dis-

FpccI for reducing power tariﬀ for exporters ISLAMABAD

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usiness community urged the government for reducing power tariff for export sector of the country to develop and boost the local industrial sector. Speaking at a seminar on export competitiveness, President Federation of Pakistan Chamber of Commerce and Industry Zubair Tufail said regional countries were providing incentives to their export sector. The price of gas and electricity was about 50 percent less in the region, besides their labour was also cheap and due to these inputs their exports had witnessed signiRicant increase, he observed. The FPCCI president urged the government for reducing the price of gas, besides slashing the power

tariff for the exports sector in order to give a boost to local industrial sector. He said these measures would help to revive the export sector by rapid industrial growth in the country, which would also absorb the growing labor force of the country. Addressing the event former Governor State Bank of Pakistan Dr Ishrat Hussain said exports play a very important role in keeping the economy stable and stressed the need to facilitate the sector. Reasons behind decrease in local exports include cost and availability of energy, want of skilled labour and lack of interest in imparting training to the staff on the part of export industries, he said. Dr Ishrat Hussain said high cost of doing business was the main causes of loss of competitiveness and retreat in the international market. Meanwhile, President of the Karachi Chamber of Commerce and Industry

(KCCI) Shamim Ahmed Firpo has urged the State Bank of Pakistan (SBP) to take strict action against Exchange Companies (ECs) who were reluctant convert the old-design US$100 notes and were charging 3 to 4 percent fee to exchange the old bills with the new ones or convert them into Pakistani rupee or any other currency. In a statement issued, Shamim Firpo said that the Karachi Chamber has been constantly receiving many complaints nowadays from its members who are being offered 3 to 4 percent less exchange rate against the current market value in case they bear old-design notes which is highly unfair, totally illegal and sheer looting by the Exchange Companies. He said that these Exchange Companies further advise the public that if they are not willing to pay 3 to 4 percent fee, they can take these dollars with them to Dubai or any other country.

abled persons so far and it has decided to extend the scope of these trainings in coming days. LABARD Secretary General Muhammad Saeed Khan said that the government should patronize all LABARDlike institutions so that the stigma of disability could be removed from the face of Pakistani society. He said that it is religious and moral duty of the whole private sector to ensure jobs to the disabled persons so that they could enjoy the status equal to other members of the society.

LccI & pSDec sign Mou he Lahore Chamber of Commerce & Industry (LCCI) and Pakistan Stone Development Company (PASDEC) signed a Memorandum of Understanding to ensure growth of marble & stone industry on sustainable basis. CEO PASDEC Zahid Maqsood Sheikh and the LCCI Acting President Nasir Hameed Khan inked MOU in the presence of Provincial Minister for Mines & Minerals Chaudhry Sher Ali and Convener LCCI Standing Committee on Marble industry Chaudhry Khadam Hussain. Secretary Mines & Minerals Dr. Muhammad Arshad, Executive Committee Member Zeeshan Khalil and Mehboob Sirki also spoke on the occasion. Provincial Minister said that the efforts are afoot for the development of mines and minerals sector of Punjab. –CB Report

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Sargodha ASO seizes non duty paid ladies suits SARGODHA: The Anti Smuggling Organization (ASO) Sargodha has impounded smuggled ladies suits printed in different colours. The market value of the seized cloth is Rs3,00,000 involving duty taxes Rs, 13,46,280 besides confiscated carrier Toyota Corolla car worth Rs12,00,000. Sources told Customs Today, that ASO team comprising Muhammad Javed Mehmood (superintendent), Malik Atif (inspector), Afzal Hussain, Liaquat Ali, Israr Ahmad, Muhammad Ashraf, Haffiz Naseer Ahmad (sepoys ) intercepted a Toyota Corolla car bearing registration no: PT-051 and seized ladies suits near police Station city Chiniot.

Tuesday, August 29, 2017

CUSTOMS BULLETIN

Smuggled goods impounded by customs preventive Sukkur on National highway HYDERABAD ASLAM ANJuM QureShI www.customsbulletin.com

he Anti-Smuggling Organization (ASO) Hyderabad, Customs Preventive Sukkur, has conRiscated the foreign origin non-duty-paid seven smuggling items including 157 cartons of 10 CP bundles of 10,850 yards of cloths, food items, electrical goods, stationeries, electronic items and shoes worth Rs4.6million involving customs duties and taxes during the vehicles-checking on National Highway near Ali Whan RohriSukkur during the Rirst week of August 2017/18. Following the guidelines of Hyderabad Collector Akhlaq Ahmad Khattaq, Additional Collector Rehmatullah Vistro and his team, comprising Assistant Collector Mumtaz Ali Ghangro, In-Charge checkpost, Inspectors and Sepoys, Driver and others, were apprised of the smuggling of goods outside Sukkur. The customs team started checking of the vehicles. During the checking, the team intercepted a vehicle on National Highway near Ali Whan Rohri-Sukkur and recovered foreign origin non-duty-paid

above said smuggling goods. The market value of the confiscated items was Rs3.2million involving duties and taxes amounting to Rs1.5million. Before the recovery

of the vehicle, the team asked the driver to show the legal documents regarding the possession and transportation of the smuggling goods but he failed to prove any-

thing lawful. So the customs team seized all the items and forwarded the case to the Customs Adjudication for further proceeding. Additional Collector Rehmatullah Vistro

told Customs Today that all the squads, working under the jurisdiction of Model Customs Collectorate Hyderabad, achieved the required results due to timely mobilization.

customs hazara generates rs67.5 million of all duties & taxes ISLAMABAD

tArIQ DerYA

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he Customs Station Hazara earned Rs67.5million of All Duties and Taxes and miscellaneous surcharges during the initial 15 days of August Financial Year (FY) 2017-18. Hazara is a customs station working under the jurisdiction of Model Customs Collectorate

(MCC) Peshawar. According to details given by sources of Hazra that it showed satisfactory performance during the early 15 days of August FY17-18. During above said period, the Hazara collected Rs20.65million of Customs Duty while it did Rs1.69million as miscellaneous taxes and surcharges. The sources told CT that, during fist 15 days of August FY17-18, the Hazara generated Rs0.11million of Redemption Duty (RD) whereas it did Rs0.60million as Sales Tax on Palm oil. The Hazara Customs

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).

Station received Rs12.20million of Additional Income Tax (AIT) while it did Rs2.25million as Federal Excise Duty on Imports during the initial 15 days of August FY17-18. Sharing the details of corresponding periods, the sources said the Customs Station Hazara got revenue amounting to Rs186.43million of All Duties and Taxes and surcharges during July FY17-18. The Hazara Station earned Rs868.28million as All Duties and Taxes during corresponding Financial Year 2016-17.