Wednesday, 9 August 2017 by customs bulletin

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Karachi, Wed August 9, 2017

KARACHI

AFTAB CHANNA

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he Collectorate of Customs Preventive has collected Rs 11,197 million under the heads of customs duty, sales tax, income tax and the federal excise duty during July 2017. Official sources told

Customs Today that Customs Preventive collected included Rs 2,774.22 million as customs duty, Rs 6,852.86 million as sales tax, Rs 1,180.32 million as income tax and Rs 389.63 million as the federal excise duty. Significantly, the Customs Collectorate of Preventive collected Rs 164.28 million as customs duty and Rs 605.31 million

Vol 2, Issue No. 184

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as sales tax on the last working day i.e. July 31, 2017. Sources said that the Collector Customs Preventive Dr Saifuddin Junejo has lauded the performance of the officials of the Collectorate in attaining the revenue targets and hoped that the officials would put up extra efforts to achieve more than the set targets.

Customs Preventive collects Rs 11,197 million duties, taxes

ASO seizes five non-customs paid vehicles of Rs.10.5m in three days

Peshawar Customs generates Rs2.3b by seizing smuggled goods

CBP K9 helps keep more than $320k in meth, fentanyl off the streets

Faisalabad Appraisement collects Rs 265.02m customs duty

Customs Preventive has collected Rs 11,197m under the heads of CD | See pAge 01 |

ASO of Multan Customs has seized five NDP vehicles of worth Rs.10.5 million | See pAge 02 |

PeshawarCustomgeneratedhandsome revenueofRs2.3bundertheheadofsmuggled | See pAge 05 |

Thanks to the nose of a US Customs and Border Protection drug sniďŹ&#x192;ng canine | See pAge 07 |

Customs Appraisement collected Rs 265.02 million under the head of CD | See pAge 08 |

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FBR issues WHT rates on rental income Wednesday, August 9, 2017

National

KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates to be applicable on account of rent of immovable property during year 2017-18. According to Withholding Tax Rate Card 2017-18, every prescribed persons as per Section 155 of Income Tax Ordinance, 2001 required to collect tax from recipient of rent of immovable property at the time the rent is actually paid. The FBR notifies rates (A) in case of individual or Association of Person (AOP): Where the gross amount of rent does not exceed Rs, 200,000: Nil Where the gross amount of rent exceeds Rs, 200,000 but does not exceed Rs, 600,000: 5% of the gross amount exceeding Rs, 200,000.

ASo seizes five non-customs paid vehicles of rs.10.5m in three days

KARACHI

MULTAN

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imrAN ALi

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he Directorate of Intelligence and Investigation-Inland Revenue has lodged a case against a businessman for tax evasion of Rs576.564 million. I&I-IR Karachiâ&#x20AC;&#x2122;s Anti-Money Laundering Wing has lodged FIR, under Anti-Money Laundering Act of 2010, against Usman Shahid, a resident of DHA Karachi, for causing heavy financial loss to national exchequer. In 2016, the government gave anti-money laundering investigation powers to the FBR-Directorate General of I&IIR. Usman Shahid is an also a holder of NlCOP (National Identity Card for Overseas Pakistanis) exhibiting USA as his country of stay. Shahid run investment companies, Southern Distributors & Southern Investment and he submitted inaccurate / wrong particulars to federal government of Pakistan in his income tax returns filed for tax years 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16. He has concealed his true revenue/turn-over/income from government of Pakistan with intention of evading due tax and his lifestyle does not match their income which he declared before FBR, added sources.

he Anti-Smuggling Organization of Multan Customs has seized five non-customs paid vehicles of worth Rs.10.5 million in anti-smuggling actions during three days. According to the details, the Customs Collectorate Multan has initiated crackdown against the foreign origin smuggled vehicles in the jurisdiction. AntiSmuggling Organization Multan has started crackdown against smuggled vehicles in the region on the directions of Collector Saud Imran Ahmad. Multan Customs vehicles cell branch has adopted aggressive strategy against smuggled vehicles to curtail the movement of non-duty paid vehicles in the jurisdiction. The Customs Collectorate has enhanced the surveillance of the sensitive routes including Dera Ghazi Khan, Punjab Balochistan border and adjoining regions which were often adopted by smugglers for transportation of their smuggled vehicles. The Anti-Smuggling Organization of Multan Customs has enhanced the patrolling in the suspected areas against non-customs-duty paid vehicles on the basis of intelligence information without any discrimination. The anti-smuggling squad has intercepted five vehicles from various routes of the jurisdiction with the cooperation of

FBr registers money-laundering case against businessman

law enforcement agencies. Anti-Smuggling Organization vehicle cell has impounded five foreign origin vehicles including two Land Cruisers, Toyota Fielder, Suzuki Jimny, Toyota Corolla in their three

days crackdown in the region of Dera Ghazi Khan . Two seized vehicles were found tamper out of these seized vehicles and remaining vehicles were non-customs duty paid. Multan Customs Anti-Smuggling Or-

ganization has seized all these foreign origin vehicles under the Customs Act 1969. It may be mentioned here that Customs Collectorate Multan is pursuing rigorous anti-smuggling campaign in the jurisdiction.

Customs Quetta collects rs1.256 billion in FY2016-17 T

ISLAMABAD

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he Model Customs Collectorate (MCC) Quetta received Rs1.256billion of all duties and taxes during the Financial Year FY2016-17. According to details given by Dr. Saeed Jadoon while talking with Customs Today, he said that, during July FY16-17, the MCC Quetta reflected an excellent performance under all the tax heads.

During said period, the Model Customs Collectorate earned Rs426million of CD while no tax collection target was assigned for the first quarter of July. During the month of July FY1617, the Model Customs Collectorate Quetta generated Rs577.00million Sales Tax (ST) while MCC Quetta did Rs30.00million of Federal Excise Duty (FED). The Collector said that, during July FY16-17, the Quetta Collectorate got Rs223.00million of With Holding Tax (WHT) and the

total collection reached Rs1256.00million under all the tax heads during the above said period. He further said the IDP generated surplus Customs Duty (CD) during July 1st to 31st of Financial Year FY2017-18 against the collection of the same period of corresponding FY2016-17. The Quetta Collectorate earned record revenue collection during FY16-17 and hoped that a record will be maintained during the current financial year as well.

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he Custom Collectorate Peshawar generated handsome revenue of Rs2.3 billion under the head of smuggled goods including vehicles, tyres, petrol, medicines, mobiles phones, generators and other raw materials in last financial year 2016-17. According to the details, the items recovered in previous financial year of 2016-17, include 23 vehicles having value of Rs600 million, 18 vehicles having value of Rs400 million, foreign origin cloth 22726 yards having value of Rs500 million, betel nuts poppy seeds 802 kilogram having value about Rs0.1 million, currency of various countries having value of 30,000, food grains having quantity of 2106 kilogram, tea 9023 kilogram having value of Rs50 million. Similarly in head of tyres and tube the customs authorities generated amount of Rs20 million having quantity of 4011 kilogram. The customs authorities also seized auto spare parts of Rs30 million, liquor of Rs30 million, timber of Rs4 million, petrol 2710 liters, diesel 2710 liters, , gold of Rs120 million, cigarattes of Rs3 million, electronic goods of Rs33 million, antique Rs1.8 million, carpets, pi-

Wednesday, August 9, 2017

rated CDs, of Rs1 million, scrap of Rs0.4 million and blankets of Rs1.3 million. Likewise the Customs Collectorate Peshawar also seized toys 9503 in numbers, medicine of Rs0.2 million, dinner Sets dozen of cottons, pan of Rs0.3 million, generators of Rs3 million, mobile phone of Rs12 million and raw material of Rs0.7 million. The total collection of Customs Peshawar in head of seized goods is Rs2.3 billion which include deferent items. Meanwhile, The 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 differ-

ence in rupees was recorded Rs115.33 million while the difference in percentage was recorded 44.67 percent.

auto seized o s l a f rs30 orities quor o s auth i l m , o n t o s i 10 ill The cu trol 27 s30 m e r p f , o n s o li part 120 s4 mil spare d of rs er of r l b o g m i , t , s n, n, 0 liter millio millio el 271 3 s s e i r d f , o ue s liters , antiq aratte n g i o c i l , l i n m millio of rs1 f rs33 d CDs, oods o e g t c a i r i n o p nd electr rpets, illion a on, ca i m l l i 4 . m 0 rs1.8 p of rs illion n, scra s1.3 m millio r f o s t blanke

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Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDiToriAL

Question of real growth rate

esearchers at the Center for International Development of the Harvard University, in a study, have predicted Pakistan’s annual growth rate at 6 percent for the next 10 years, revising an earlier projection of five percent for the period. However, the largest economic partner of Pakistan, China with current GDP of $12 trillion will achieve a growth rate of 4.41 percent. The growth rate of a country is measured by keeping in view economic complexities, diversities and sophistication’s as well as its production capability with regard to its exports. According to the study,economic complexities not only describe what makes a country rich or poor, but projects its future growths. The growth rate of Pakistan will beat all Asian economies but it would have no match with India which will grow at 7 percent in coming years. Though the world financial institutions predict subdued GDP growth rate in coming years, but some economists hope it will improve to over eight percent by 2030 as the China-Pakistan Economic Corridor will go in full operation by then. However, keeping in view political uncertainty and poor governance, achievement of even five percent growth rate will be unattainable. On the basis of the recent tumultuous events on the political canvas of the country, independent economist question even the government’s claim of achieving 5.3 percent GDP growth rate in 2016-17. The major issue facing the nation at the moment is to keep consistency in the ongoing economic policies and maintain the financial order. It has been a routine in the history of the country that unscrupulous elements come out from hibernation to damage the business and trade activities in uncertain political environment. The new prime minister has, however, assured the nation that economic policies of the Nawaz government would continue, but he needs to do more than that. The former finance minister with all his abilities and capabilities had failed to keep financial order in the country. He is also blamed for statistical manipulation of economic growth, revenues, expenditures and budget deficit at a large-scale. The world financial institutions have also questioned the GDP growth rate of the country claimed by the minister when electricity consumption fell by seven percent, exports declined and unemployment increased.

Cash and economy P

LAHORE

Dr AFTAB AFZAL

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akistan is generally regarded as a cash-starved country in the international media, but the fact of the matter is that neither the country nor its people are in such a condition. There are over 80 million people, more than the total population of Britain, Turkey, Germany, France, Iran and Turkey, who have nearly $30,000 per capital income. Overall on the economy side, scrips in the stocks market are being traded dozens of times more than their book values, showing a tremendous over investment and placing Pakistan in the list of emerging markets. Hundreds of billions of dollars

from Pakistan are stashed in Swiss banks and elsewhere in the world which can be brought back to pay the country’s debts or invest in development projects. The real estate business is booming and is working as engine of growth in the country. There are 80 industries which are directly or indirectly associated with the construction sector. When construction sector grows, it pushes the local industries to work overtime to meet the overwhelm demands of their products. The foreign investment has increased many fold in recent years and Chinese investment has considerably developed infrastructure of the country. The recent ouster of Prime Minister Nawaz Sharif reveals the fact that

anything can be done if there is a will to do in the best interest of the country. The money stashed in Switzerland or any other country can also be brought back if government has the will to do it. However, there is a dire need to remove the causes which force people to shift their money abroad. Pakistan has lot of potentials for investment, trade and industry, but ill-conceived policies, lack of planning and implementation and political inconsistencies are the main causes of underdevelopment of this country. There is a need to restore the trust of the people in the country that their money will be protected at all costs. Previously, Finance Minister Ishaq Dar and his team

had squeezed the business community to get more and more taxes. Enhancing taxes as the only option always backfires and people choose to take their money abroad. The people of this country want to invest and pay taxes, but official machinery has the power to make or break any business entity. In corrupt society, giving unchecked authority to government officials is the root-cause of all troubles. This allows a portion of investment to go into the pockets of the black sheep in government departments. The prime minister has gone, but consistency of the economic policies must be ensured if the Pakistan Muslim League-Nawaz wants to win the next elections.

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OCBC targets $3b housing loans in Singapore Wednesday August 9, 2017

World

SINGAPORE: Housing loans helped it achieve an 11% growth in lending. After posting a robust 11% growth in loans for the past quarter, banking giant OCBC targets to boost lending by targeting Singapore housing loans to reach $3b this year. According to UOB Kay Hian analyst Jonathan Koh, the strong growth in loans was driven by finance, overseas investments and housing loans. Meanwhile, the bank’s lending from Singapore, Indonesia and Greater China grew 8.1% yoy, 16.7% yoy and 13.4% yoy, respectively. During the past quarter, OCBC has financed commercial and hospitality properties in Sydney, London, and New York.

CBp helps keep $320k in meth, fentanyl oﬀ the streets

uk accounting, legal sector generates £15.5b of tax LONDON

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WASHINGTON

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hanks to the nose of a US Customs and Border Protection drug sniffing canine, more than $326,000 in methamphetamine and fentanyl is off the streets. According to a CBP release officers at the Port of Nogales stopped the smuggling attempt of a 49-year-old woman on Tuesday, Aug. 1. The woman’s vehicle was pulled for secondary inspection at the Dennis DeConcini crossing, after the CBP K9 alerted to the possibility of drugs in the vehicle. Officers searched the Chrysler sedan and found several bundles of drugs hidden inside. According to CBP the bundles consisted of 67 pounds of methamphetamine, worth an estimated $202,000 and close to eight pounds of fentanyl, worth $124,000. The sedan and

italy may unemployment rate rises to 11.3% taly’s unemployment rate rose in May to 11.3 percent after an upward revision to the previous month’s data, as some 51,000 jobs were lost, national statistics bureau ISTAT reported on Monday. ISTAT revised up April’s rate to 11.2 percent from 11.1 percent. May’s data reversed a recent trend of job growth and falling unemployment. In the three months to May employment was up by 65,000 compared with the December-to-February period, ISTAT said. In May the youth unemployment rate, measuring job-seekers between 15 and 24 years old, rose for the second month running to 37.0 from an upwardly revised 35.2 percent in April. Italy’s overall employment rate, one of the lowest in the euro zone, slipped in May to 57.7 percent from 57.8 percent in April. –CB Report

drugs were seized and the woman was turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Meanwhile, Pounds of cocaine hidden deep inside a vehicle’s fuel tank were seized Sunday by officers at the Bridge of the Americas, officials said. U.S. Customs and Border Protection officers seized about 27 pounds of cocaine at about noon Sunday after a 44-year-old woman attempted to enter the U.S. through the international crossing in a 2006

Nissan Frontier, customs officials said. Officers selected the vehicle for secondary inspection after they noticed “several issues during the preliminary interview” with the woman, officials said. The vehicle was inspected and a fiber optic scope was used to look inside the fuel tank, allegedly revealing a metal box hidden in the tank. The fuel tank was removed and officers allegedly found 10 bundles of cocaine inside the metal box, officials said.

Canada’s July auto sales up 4.9 percent as sales decline in uS

anadian auto sales rose 4.9 percent in July as the industry benefited from strong economic growth, even as U.S. sales fell for a fifth consecutive month, according to data released on Tuesday. Global Automakers of Canada President David Adams said he expects the growth to continue, which should enable Canada to post record full-year auto sales in 2017. “The Canadian market is trended upwards,” he said.

“Part of it has been due to Canada’s brightening economic fortunes.” Auto sales typically track macro indicators such as employment and economic growth. Canada’s economy grew by 0.6 percent in May from a month earlier, Statistics Canada said last month, exceeding economists’ forecasts for 0.2 percent growth. July’s sales of 181,834 vehicles pushed the year-to-date total to 1.22 million. –CB Report

he total was made up of £6.4bn in taxes borne, plus £9.1bn of taxes collected, representing 2.5% of all UK tax receipts. The study found the accounting and legal sector collectively generated employment of 693,000 across the UK, or 2.2% of the workforce. Nearly one quarter (23%) of EU employees in the sector are in the UK, and TheCityUK says the report underlines Britain’s premier position as a legal and accounting services employer, trailed by Germany at 21% of the EU’s total sector jobs, then France (10%), Spain (8%) and Italy (7%). The think tank says that added together with the significant total tax contribution for the financial services sector, reported as £71.4bn in 2015/16, the estimated

total tax contribution for UK-based financial, legal and accountancy services is £87bn. Miles Celic, chief executive, TheCityUK, said: ‘The UK is the leading global hub for legal and accounting expertise and it is vital that we not only preserve that, but we continue to grow it. ‘This expertise isn’t just located in London. Right across the UK, centres of excellence, including Manchester, Bristol and Edinburgh, are adding value to the UK economy. These are also the areas we expect to see the most growth in the coming years as we move through Brexit and beyond.’ The study found that in 2016, there were nearly 60,500 legal and accounting businesses in the UK with small to medium sized enterprises with fewer than 99 employees making up 99% of all firms. Meanwhile, Activity in the UK’s growth driving service sector edged up in July, following a similar bump in the manufacturing sector and raising hopes the economy has had a solid start to the third quarter.

maersk Line returns to wellington aersk Line has announced it will resume its weekly container shipping service to Wellington. The service will return once CentrePort has completed works that will allow its ship-to-shore cranes to operate. These works were required following damage sustained in the November 2016 Kaikoura earthquake. They are expected to be largely complete by September. The Jens Maersk, deployed on Maersk Line’s Northern Star service and capable of carrying 3,000 TEUs (Twenty-foot Equivalent Unit), will make its first call at Cen-

trePort on 18 September. Maersk Line’s Northern Star service deploys six 3,000-TEU sized vessels. The service makes six weekly port calls around New Zealand each week, connecting Kiwi consumers to goods, businesses to markets and enabling global trade. Through Maersk Line’s service network, New Zealand has access to 113 countries around the world. Meanwhile, The Danish retail sales index rose 0.5 percent in June from a year earlier, the statistics office said. Retail sales fell 0.1 percent in June from the previous month, Statistics Denmark said. –CB Report

Sri Lanka’s Seylan Bank group net up 24%

COLOMBO

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ri Lanka’s Seylan Bank Plc group’s net profits in the June 2017 quarter rose 24 percent to 1.32 billion rupees from a year earlier, helped by investment income and lower tax provision, interim accounts show. The group

reported earnings of 3.74 rupees per share. The stock closed at 95 rupees, unchanged Monday. Interest income for the quarter rose 32 percent to 10.6 billion rupees and interest expense rose at a faster 43 percent to 6.9 billion rupees, but the bank also grew its net interest income 14 percent to 3.6 billion rupees. Customer loans grew 2.97 per-

cent to 243 billion rupees in the six months to June. Deposits grew 2.45 percent to 280 billion rupees. Specific provisions rose to 684 million rupees in the quarter from 103 million rupees a year earlier and general provision also rose to 146 million rupees from 124 million rupees. Fee and commission income rose 22 percent to 935 million rupees. Net gains on financial investments

rose to 247 million rupees from a negative 6.1 million a year earlier helping boost the bottom line. Corporate income tax was down 42 percent to 323 million rupees. At standalone bank level profits were down 9.2 percent to 939 million rupees. Group gross assets grew 3.7 percent to 371 billion rupees and net assets grew 9.8 percent to 33 billion rupees.

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FBR non-filers to pay 25% WHT on winning of prize bonds KARACHI: The Federal Board of Revenue has asked non-filers to pay 25 per cent withholding income tax on winning prize bonds. According to withholding tax rate card for year 2017/2018 issued by the FBR, under section 156 of Income Tax Ordinance, 2001 every person making payment is required to withhold tax on payment of prize or winnings. As per the section payment made for prize on quiz bond and cross word the withholding tax rate will be 15 percent in case of filer of tax return and 25 percent in case of non-filer of return.

Wednesday, August 9, 2017

CUSTOMS BULLETIN

Faisalabad Appraisement collects rs 265.02 million customs duty FAISALABAD NAeem SHeikH

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The Collectorate of Customs Appraisement collected Rs 265.02 million under the head of customs duty (CD) during the Fiscal Year 2017-18. Sources told Customs Today, that this amount is 52 percent extra as compared to the collection of Fiscal Year 2016-17. Sources told that customs Appraisement collected sales tax (ST) Rs633.97 millions during the month of July. Sources told that the collected amount is more than 26 percent as compared to the collection of same month of previous Fiscal Year. Furthermore, Collection of Withholding tax stands at Rs17.92 as compare with fiscal year Rs10.33 million collected. It is necessary to mention here that Collector Customs Appraisement Muhammad Sadiq lauded the efforts of his Collectorate which work devotedly and not only achieved the assigned revenue collection target but surpassed it with a big margin. Sources told that Collector Muhammad Sadiq directed his team to use all available resources to collect outstanding tax amount from defaulters specially those who are willfully avoiding to pay tax.

Court grants bail to suspect involved in tax evasion case KARACHI

m B rANA

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ustoms Court Judge Syed Faiz Rasool Rashdi has granted pre-arrest bail to suspect namely Nasira Dharani, director of M/s Electro Polymers (Private) Limited, who was allegedly involved in fake invoices case. During the hearing, counsel for the accused moved the bail

petition and argued that his client is innocent and has falsely been implicated in this case, therefore, the court may granted him bail. After his arguments, the court granted him bail against surety of Rs 100,000 and issued notices to special prosecutor for the customs department and investigation officer of this case. The court also directed the suspect to appear before the court on the next date of hearing. According to the prosecution, above mentioned accused and other are

involved in issuance of fake invoices and it output is being used for clearing refund or input tax adjustment by the others registered persons. Case was registered for violation of under section 2 (37) 2 (9) 2 (14) (a) 3, 6, 7, 8 (1) (a) & (d) 8a, 22 (1) 23 (1) 25, 26 (1) & 73 of Sales Tax Act 1990 punishable under section 33 (3) (5) (8) (11c) (13) (16) (18) ibid. Meanwhile, The Customs Taxation and Anti-Smuggling Court has issued non-bailable warrants against the absconding accused, Syed Bilal Hussain

Shah, in a case of non-duty paid Toyota Hilux jeep model 2000 valuing Rs 2,519,771. During the hearing, Investigation Officer Azhar Mahdi submitted charge sheet against the suspect and informed that during the search, team of the customs authorities intercepted a Toyota Hilux jeep Model 2000 and the suspect was asked to produce documents. However, he failed to produce any lawful documents, therefore, the vehicle was seized by the officials. After his arguments, the

Published by M S Raza OďŹ&#x20AC;# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,oďŹ&#x20AC; I.I. Chundrigar Road, Karachi

court accepted the charge sheet and directed him to arrest the absconder accused. Senior Preventive Officer Names of Azhar Malik, Customs House Karachi, Muhammad Yousaf, Senior Preventive Officer, Customs House Karachi, Muhammad Tehseen Sepoy, Azhar Mehdi Investigation Officer and others are mentioned as witnesses. The case was registered under section 2 (s) 32 and 178 of Customs Act, 1969 punishable under clauses (8) (89) and 14 of section 156 (i) ibid.