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Karachi, Thu August 3, 2017
ISLAMABAD
TARIQ DERYA
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he Model Customs Collectorate (MCC) Islamabad generated Rs163.04million surplus all duties and taxes during 28th days of July Financial Year FY201718 against the collection of all duties and taxes during the same period of last Financial
Year 2016-17. The Customs Collectorate of Islamabad generated Rs883.3million during the 1st to 28th of July FY17-18 of all duties and taxes whereas it received Rs720.29million during the same period of corresponding July FY1617 under the same head. According to details explained by Dr. Arslan, Collector MCC Islamabad, that, during said period, the MCC earned a handsome
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amount against the same period of yesteryear. During said period, the MCC Islamabad earned Rs295.21million of Customs Duty (CD) while it did Rs231.32million under the same head during the last 2016-17. During the 1st to 28th of July FY17-18, the MCC Islamabad got Rs376.85million of Sales Tax (ST) while it collected Rs293.35million during the same period of FY2016-17. During said period, the collectorate of Islamabad generated Rs174.91million of Income Tax (IT) against the collection of Rs170.52million during the same period of corresponding year.
Islamabad Customs earns Rs164.04m surplus against yesteryear
Customs ASO seizes mobile phones worth Rs 13.2 million
Peshawar Customs exceeds revenue collection target of July
Customs at KLIA foil attempt to smuggle cigarettes worth RM1.08m
Hyderabad ASO confiscates computer accessories worth Rs1.6 million
The MCC Islamabad generated Rs163.04m surplus all duties and taxes | SEE pAgE 01 |
CustomsI&IASOhasfoiledabidtosmuggle a huge quantity of mobile phones | SEE pAgE 02 |
Member Admin Ms. Tasneem Rehman issued instructions for starting probe | SEE pAgE 05 |
Malaysian Customs at the KLIA foiled an attempt to smuggle 2,145,000 cigarette | SEE pAgE 07 |
ASO Hyderabad, seized smuggled NDP computer sets, hard discs, CPUs, Dell | SEE pAgE 08 |
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FBR publishes new draft IT return after amendment Thursday, August 3, 2017
National
ISLAMABAD: The Federal Board of Revenue has published new draft income tax returns for tax year 2017-18 after making further made amendment in the Income Tax Rules, 2002. The Board has made the new amendments under the powers conferred upon it by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001) and published for the information of all persons likely to be affected thereby and, as required by sub-section (3) of the said section. The draft will be taken into consideration by the Federal Board of Revenue after seven days of its publication in the official Gazette.
customs ASo seizes mobile phones worth Rs 13.2 million
car cell Islamabad impounds nDp vehicle on tip-off from Zero point ISLAMABAD
TARIQ DERYA
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he Car Cell of Model Customs Collectorate (MCC) Islamabad impounded a Non-Duty-Paid (NDP) vehicle worth Rs1.5million from Zero Point (Islamabad) territory on a tip-off received by Deputy Collector, Preventive Department. According to details given by Superintendent, Car Cell, Rana Shakeel that Deputy Collector, Preventive Department, Ansir Anees got a tip-off that a Honda Vitz car with registration No: AAK-771 was coming towards Islamabad. The car cell set up a picket near Zero Point and intercepted the above said car, model 2010. The Car Cell asked the possessor of the vehicle to show the relevant documents which can prove the legal status of the car but he failed to provide any proof. The Car Cell impounded the vehicle and shifted it to State Ware House for further investigation. After getting enough information about the seized vehicle, an FIR has been lodged against the possessor of the vehicle and a case forwarded to Investigation and Prosecution (I&P) Department for further investigation. The customs impounding staff comprised Superintendent Rana Shakeel, Inspector Chaudhry Safdar, Sepoy Bilal and other supporting staff of the Car Cell of the MCC Islamabad.
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KARACHI
muBEEn huSSAIn
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ustoms Intelligence and Investigation (I&I) Ant- Smuggling Organization (ASO) has foiled a bid to smuggle a huge
quantity of mobile phones in different cities. The Director General of Directorate General I&I Shaukat Ali received information about smuggling of electronic items in a huge quantity.Under the guidance of the director general, the director I&I constituted a team headed by Senior Intelligence Officer Akmal
Hashmi which raided First Cargo godown and Shalimar cargo service located at the Karachi Railway Station and recovered a huge quantity of mobile phones. The consignments of the phones were to be sent to different cities. In the first raid, the team recovered 261 mobile phones and tablets
and in the second raid it seized 355 phones, tablets and Mac Books. The total worth of the recovered goods is Rs 13.2 million. Cases have been registered against suspects and further investigations are underway. Director General Ali has appreciated the performance of the ASO officers.
Royal Impex moves Shc for restoration of ST registration
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KARACHI
m B RAnA
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he Sindh High Court (SHC) has issued notices to the tax department and deputy attorney general on a constitutional petition filed by M/s Royal Impex for restoration of its sales tax registration number seized by customs department. While hearing the case, a two-member bench, headed by Justice Munib Akhtar also directed
them to file their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner, through its proprietor Saleh Hamza, said that petitioner is engaged in the lawful business as commercial importer/ exporter/ wholesaler and fulfilling all the liabilities properly. According to the counsel, petitioner was informed by one of his clearing agent that his sales tax registration number has been shown as suspended with effect from July
14, 2017. He argued that neither any show cause notice nor formal notices were issued to the petitioner in this regard. Citing Secretary Ministry of Finance, Economic Affairs, chief commissioner Inland Revenue Corporate Regional TaxOffice and Commissioner Inland Revenue, Corporate Regional Tax Office as respondents, counsel for the petitioner pleaded the court may declare that act of the customs department is illegal, mala fide and arbitrary. He also pleaded the court
may quash suspension order dated July 13, 2917 for blacklisting the registration of sales and also direct respondents to issue instruction for immediate resumption of the sales tax registration number. Meanwhile, The Sindh High Court has ordered Customs to release consignments of hair oil, balm etc deciding the issue of license for the import of hair oil and pain balm. A SHC appellate bench, comprising Justice Munib Akhtar and Jus-
tice Yousuf Ali Sayeed, was hearing a petition filed by Honse Trading whose consignments were detained by the Pakistan Customs on ground that import of the items require license from the Drug Regulatory Authority of Pakistan (DRAP). Ghulam Hyder Shaikh advocate appearing for the petitioner argued that the imported items are herbal or natural products and does not fall in the category of medicines for which license from DRAP is mandatory.
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he Customs Collectorate surpassed its target by collecting Rs1512.99 million in the month of July 2017 against Rs953.47 million of the previous July 2016 having remarkable differences of Rs559.52 million with 56.08 percent. According to reliable data collected from Peshawar Customs House, in head of customs duties Rs490.25 million collected against previous July of 2016 which was Rs 334.18 million having difference of Rs15655.07 million while the difference in percentage was recorded 37.74 percent. In term of sale tax on import the house collected Rs377.53 million in July 2017 against the figure of previous year of Rs262.20 million. The difference in rupees was recorded Rs115.33 million while the difference in percentage was recorded 44.67 percent. In head of sales tax levied as federal excise duty on palm oil the customs house collected
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Rs54.38 million against Rs39.76 million of July 2016. The total difference in percentage in this section was recorded 36.77 percent while the difference in rupees was 14.62 million. In head of federal excise duty (FED) on import the Custom House collected Rs15.92 million against the previous year of July 2016 which was Rs8.28 million. The difference in rupees was recorded Rs7.64 million while the difference in percentage was 16.01 percent. In term of withholding tax the house collected Rs371.07 million against the previous year Rs215.75 million of for July 2016. The difference in rupees was noticed Rs155.32 million while the difference in percentage was recorded 71.99 percent. The performance of the house for the month of July 2017 April was far better as compare to July 2016 as handsome revenue generated in head of various duties. It is mentioned here that Collector Qurban Ali has made remarkable decision to improve the revenue collection of Peshawar customs as custom staff has tight the noose around the
neck of smugglers and seized gold and other valuables in last one month.
tax on f sale o m r ected In te se coll u o h e t th in July impor illion m 3 5 . re of Rs377 e figu h t t s n gai 62.20 2017 a of Rs2 r a e y us previo n millio
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EDIToRIAL
Business, trade with uk
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akistan’s gross domestic product has crossed $300billion mark after achieving 5.3 percent economic growth in 2017, the highest in a decade. However, when foreign direct investment has reached $2.41 billion during the fiscal year 2016-17, up 5 percent compared to the previous year, the country’s exports have continuously been on a downward trajectory for the last four years and have lost more than 20 percent of its volume in a row. The good part of the current economic situation is that various developed nations are taking interest in enhancing investment in Pakistan, but the worst part is that no one knows who is the actual in charge of the country’s economy and which areas are safe for the foreign investment. According to Britain’s Deputy High Commissioner in Karachi Belinda Lewis, her government is considering enhancing direct investment for long-term mutual benefits of the two countries. Due to the lack of interest in the political leadership, the bureaucracy would not be able to devise any plan for the revival of the economy. Not only the UK government, but many other countries are willing to increase business and trade volume with Islamabad, but focal person is missing in this country. The current size of Pakistan-Britain trade is close to $2 billion, which could be increased to $10 billion given the presence of the Pakistani diaspora in that country. However, the trade with UK is also on downward trajectory. Pakistan received only $69 million investment from the UK in financial year 2016-17, down 54 percent from $151 million in the previous year. According to the envoy, there are great business opportunities between the two counties but the potentials of bilateral trade have not been tapped. Given the close affinity of the political leadership with UK, Saudi Arabia and Qatar, it could not utilize its good offices to change the lot of this nation. The government should have to prepare ground for not only British companies, but also persuade France, Germany and Japan to invest in Pakistan and make profit. The British envoy has pointed out that 120 world renowned British companies are already operating in consumer goods, banking, energy, pharmaceutical, and education sectors in Pakistan. What the government needs to do is to revisit tax laws, improve infrastructure and simplify official procedure for foreign investment.
Lack of national brands T
LAHORE
DR AfTAB AfZAL
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he chief of the Lahore Chamber of Commerce and Industry has pointed out that lack of awareness about importance of branding and value addition has come as a big hurdle in the way of business and trade in the country. Despite having strong agriculture and industrial bases, the Pakistani business community could not introduce a significant value added product in the world market and absence of branding is shifting all the benefits of the local products to other countries which are earning huge money from global
trade. On another note, Pakistan is still struggling to achieve minor export targets as exports have constantly been declining for the last many years. China produces run-ofthe-mill products for foreign buyers on the condition that every product will be marked by ‘made in China’. However, Pakistan exports best quality towels, bathrobes and many many other products without insisting on the ‘made in Pakistan’ labels and without any brand name. Instead, several European companies import Pakistani products and sell in local markets with their own brand names. In some cases, they send their own stickers to
the Pakistani exporters and the product user never knows it is made in Pakistan. This practice has been allowed by the government for several years. Though it brings short term benefits for the exporters, but long term losses for the country. The LCCI chief is correct to say that the country is getting far less benefits from the potentials of its quality products. In another case, South Korea used to import cotton from Pakistan at minimal rates, but made 10 times more money after processing it in their country. Pakistan exports tons of marble and precious stones to Singapore and other nations, which turn the raw stones into
value added goods and earn billions of dollars. One fails to understand when the policymakers of this country will learn from others’ experiences. According to economists, Pakistan still has the potentials to introduce various kinds of brands in the international markets, from fashion designs to industrial products. Pakistan is the leading sports goods exporter, but even this section lacks any brand name. It is advisable that the government policymakers, business community and all the stakeholders should sit together and work out a policy for the promotion of business and trade.
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Kuwait oil output up to 1.5 million bpd despite workers strike Thursday August 3, 2017
World
KUWAIT CITY: Thousands of Kuwaiti oil and gas workers are on strike for a third day to protest planned public sector pay reforms. Kuwait’s crude oil production was 1.5 million barrels per day (bpd) on average despite an open-ended strike by Kuwaiti oil workers, an oil spokesman told state news agency KUNA on Tuesday. Thousands of Kuwaiti oil and gas workers are on strike for a third day to protest planned public sector pay reforms. Unions have not said how long the walkout will last. Non-Kuwaiti oil workers are not on strike. Kuwait’s crude output fell to 1.1 million bpd on Sunday, from 2.8 million bpd in March.
kLIA customs foil attempt to smuggle cigarettes
Dozens arrested in Spain for horsemeat scam MADRID
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SEPANG
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he Royal Malaysian Customs at the Kuala Lumpur International Airport (KLIA) foiled an attempt to smuggle 2,145,000 cigarette sticks involving tax amounting to RM1.08 million on Friday. The contraband cigarettes that arrived by a cargo flight from Phnom Penh, Cambodia, was seized at 10.30pm in front of the Pos Malaysia International Hub here after an attempt to transport the consignment using a lorry driven by a 49-yearold local resident. Its Deputy Director-General (Enforcement and Compliance) Datuk Zulkifli Yahya said further inspection revealed that documents produced by the suspect were different from the goods he was transporting. Zulkifli said fur-
29 products obtain nS mark in fY 2016/17 he Nepal Bureau of Standards and Metrology has granted the Nepal Standard certification mark to 29 goods in the fiscal year 2016/17. The products of Nepal Gas, Manoj Gas, Shalimar Steel, Kishan Pipe Products Pvt Ltd, International Cement, Kathmandu Steel and OM Ganapati Industries among others were provided with the NS mark in the previous fiscal year. An applicant is entitled to get a recognition of Nepal Standard for any materials, products or services provided that criteria for so were met, according to Romi Manandhar, the Department spokesperson. The crosscheck of authenticity of applicant’s official documents, testing of the standard of goods and re-checking were conducted before granting the mark. The Department has so far granted the NS mark to 210 products while the NS recognition of some companies was rescinded for their failure to renew license on time. –CB Report
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ther investigations led to the detention of two local men aged 38 and 43, believed to be members of the smuggling syndicate involved in using the air route as their new tactic of smuggling cigarettes since their activities using land and sea routes were often
foiled by the authorities. He said the seizure was the biggest by the customs department this year, particularly in relation to smuggling of cigarettes through air routes, and the three suspects have been remanded for seven days to facilitate investigations.
ocean liner export underpins 0.5% french growth in Q2
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rance posted growth of 0.5 percent in the second quarter as the delivery of a huge ocean liner underpinned the strongest increase in exports in six years, official data showed. The export surge helped offset a drawdown in company inventories and slower business investment, INSEE said in its preliminary growth estimate for the three months through June. The result, the third quarter in a row that
the euro zone’s second-largest economy grew 0.5 percent, was in line with the average forecast in a Reuters poll of 27 economists. Following the economy’s performance over the first half of the year, France should have little trouble meeting and possibly surpassing the government’s growth forecast of 1.6 percent. INSEE estimated the economy has growth momentum of 1.4 percent. –CB Report
panish police have arrested and charged 65 individuals over a continent-wide ring that traded in horsemeat from animals “in bad shape, too old or simply labelled as ‘not suitable for consumption,'”according to a statement released by Europol. Spain’s Guardia Civil, in coordination with Europol, the European police agency, charged the individuals with crimes including animal abuse, document forgery, perverting the course of justice, crimes against public health, money laundering and being part of a criminal organization, the press release says. The investigation is related to 2013’s horsemeat scandal, which came to light after the Food Safety Authority of Ireland found that 10 out of 27 hamburger products it an-
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alyzed in a study contained horse DNA. In one sample from Tesco Britain’s largest grocery chain the horsemeat accounted for about 29% of the burger. A French supplier, Comigel, which supplies products to customers in 16 countries, was at the time implicated in the scandal. Some frozen products labeled as beef contained as much as 60% horsemeat. The investigation in the wake of the scandal let to “the identification of a Dutch citizen known in the horsemeat world,” Europol says. The suspect was later identified as the ringleader of an operation investigated in 2016 in which horses unfit for human consumption were being killed in two abattoirs in northern Spain and then sent to Belgium after their paperwork and microchips were altered. After analyzing samples of the meat found in the Spanish slaughterhouses, investigators concluded that the meat was mostly sold abroad.
Taiwan to face exported steel duties nited States Secretary of Commerce Wilbur Ross has announced an “affirmative final determination” in an antidumping duty (AD) investigation, finding that steel reinforcing bar (rebar, used to reinforce concrete) from Taiwan has been sold into the U.S. market at unfair prices. The Commerce Department determined that exporters from Taiwan have sold rebar in the U.S. at from 3.5 percent to 32 percent less than “fair value,” based on what it calls “factual evidence provided by the interested parties.” The Commerce Department will
instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of rebar from Taiwan based on these final rates. “The United States can no longer sit back and watch as its essential industries like steel are destroyed by foreign companies unfairly selling their products in the U.S. markets,” says Ross. “We will continue to take action on behalf of U.S. industry to defend American businesses, their workers, and our communities adversely impacted by unfair imports.” In 2016, imports of steel concrete reinforcing bar from Taiwan were valued at an estimated $53 million. –CB Report
ISps asked to improve services, upgrade to 4g
M KABUL
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oCIT also asked telecommunications companies to expand their services so that all areas in the country have internet access. The Ministry of Communication and Information Technology (MoCIT) has asked all
telecommunications companies in Afghanistan to upgrade their current 3G internet services to 4G. The ministry also called on the telecommunications companies to make sure that communication services reach remote and disadvantaged regions of the country in the near future. Afghans are not happy with the coverage of internet services in the country – thirteen
years after the country first introduced IT services and internet services. Currently internet services reach 23 provinces. An estimated five million subscribers in Afghanistan use the internet every day. The communication ministry claims that within five years all regions of Afghanistan will benefit from internet services with the help of satellite and fiber optics.
“We hope that companies also upgrade their internet services to 4G. We are working to deliver 4G licenses to all companies. We have also identified those areas where internet services are not working properly. All companies, particularly Salam company, has been directed to upgrade its services in such areas,” said Najib Nangyalai, a spokesman for the ministry.
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About 56 pending cases in courts costing national treasury Rs89.144m FAISALABAD: The Anti-Smuggling Organization (AASO) Faisalabad is pending over 56 cases in courts costing national exchequer Rs89.144million. Sources told Customs Today that increasing misunderstanding of revenue laws, flexibility of some laws and trivialization of cases are some of the main factors responsible for pendency of these cases. It is pertinent to mention here that the cases regarding tax evasion, mis-declaration and impounding of smuggled vehicles are pending in the high court, appellate tribunal, adjudication, special judge and other courts including appeals collectorate.
Thursday, August 3, 2017
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hyderabad ASo confiscates computer accessories worth Rs1.6 million HYDERABAD ASLAm AnJum QuREShI www.customsbulletin.com
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he Customs Anti-Smuggling Organization (ASO), Customs Preventive Hyderabad, seized smuggled nonduty-paid computer sets, hard discs, CPUs, Dell DVD laptops HD and different GB items valued at Rs1.6million involving duties and taxes of millions during an operation at Bypass Hyderabad during five days of July 2017-18. Smuggled items were being transported from Karachi to Bahawalpur. Following the direction of Model Customs Collectorate Collector Akhlaq Ahmad Khattaq, the ASO team is conducting various operations in the regions in order to foil the smuggling bids, officials said. During a recent operation, Additional Collector Rehmatulah Vistro, after receiving a tip-off, formed a team, comprising Superintendent Ghulam Shabbier Phulpoto, Inspectors Imdad Ali Abro, Abdul Majeed Barich, Abid Khan, Mushtaq Ali Lakho, Sepoys Nenomal, Luqman, Abdul Razaq, Saddiq Khaskheli, Sarwar Ayoub, Drivers Sher Akbar, Ajaz Saddam, Umer Solangi and Nisar Ahemdani Ajaz, which took part in
the action. The team intercepted a public transport vehicle near Bypass Hyderabad and recovered a huge quantity of smuggled foreign origin goods including 500 computer sets, used hard discs, CPUs, Dell model
780 laptops, HD DVDs and different GBs and other smuggled items valued at Rs1.6million involving duties and taxes amounting to Rs386734. Officials asked the driver to produce any legal document related to the
possession of the items but he was unable to do so. So the consignment was confiscated. A case was registered and an investigation was also started. The ASO deposited the confiscated goods into Hyderabad State
Warehouse. Talking with Customs Today, Customs Additional Collector Rehmatullah Vistro said the Hyderabad Customs showed excellent performance regarding the antismugglings during said period.
Dc orders handover of impounded Iranian dates FAISALABAD
nAEEm ShEIkh
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ollectorate of Customs Adjudication Deputy Collector (DC) Asma Hameed has released the impounded Foreign Origin (F/O) Iranian dates (18680-Kg) and Hino truck after the issuance of Order-In-Original by the Customs Adjudication. Sources told Customs Today
that Anti-Smuggling Organization (ASO) Mianwali intercepted a Hino truck with registration No: C-1901 and recovered Iranian dates of different brands’ names. The dates were being transported from Malakand to Mianwali. The seizing agency impounded the items and a carrier vehicle under Section 168 of the Customs Act-1969 and forwarded the case to the Adjudication Department for further legal action. After hearing of the seizure case, Deputy Collector Asma Hameed issued an ONO No: 107/2017 and gave directions for the release of said seizures after
the assessment of the impounded dates and truck in addition to leviable duties and taxes under the relevant custom rules. Owner Bashir Khan son of Hassan Khan has been imposed lump sum fine of Rs20000 under section 181 of the Customs Act-1969 as penalty for the release of vehicle. Meanwhile, The Customs Adjudication Deputy Collector Asma Hameed has ordered to impound a Honda Accord Car under customs laws while issuing an Order in Original (ONO) in favor of the Customs Anti Smuggling Organization (ASO) Faisalabad.
Following information, the Customs ASO intercepted a Honda Car bearing registration no: LZS-380 near Jaranwala Road Faisalabad and asked the driver to show documents regarding legal import of the vehicle. But he failed to produce the same, besides the officials could not found online computer record of the vehicle on the website of motor registration authority. The Customs ASO impounded the vehicle and sent its chassis for forensic test to Islamabad laboratory. The report of forensic lab revealed that the number was bogus and not original. The report also
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clarified that present chassis number is not original, so the case was sent for adjudication for further proceeding. Meanwhile, no one appeared to defend the case from respondent side and nor any written reply was received from the respondent side to the adjudication department. While Inspector Ali Zahid appeared from the prosecution side and asserted that the seized vehicle fell under the ambit of section 2(s), of the Customs Act, 1969. He also asked the court to issue orders regarding the confiscation of the vehicle.