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pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 262

Karachi, Sat December 12, 2015

ISLAMABAD

M FAIZAN

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he Federal Board of Revenue (FBR) has asked Her Majesty Revenue and Customs, United Kingdom to provide details of foreign investments, made by family of renowned Pakistani businessman, Mian Mansha. FBR has demanded such details under Section 26 of the double taxation relief agreement signed by Pakistan, UK and Ireland, through a letter, which had been sent by Inland Revenue Policy (IR-Policy) former member Shahid

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Hussain Asad. He sent this letter following the investigations, made by IR Intelligence and Investigation with the consent of FBR former chairman Tariq Bajwa. It may be mentioned here that IR Intelligence is currently investigating many high profile cases related to taxes, following the directions of Director General Haroon Tareen. And on his directions, Director Dr. Bashirullah is investigating the cases of Mian Mansha, former president Asif Ali Zardar, Malik Riaz owner of Bahria Town and other inRluential people. According to the investigations, which have been conducted so far against Mian Mansha and his family, a Saint James’s hotel, located in the area of Park Palace London, United Kingdom, has been purchased by Umar Mansha, Hassan Mansha and Aimal Mansha with total cost of Rs 9 billion.

FBR decides to de-centralize computer system to address IRIS complaints

Collector Majid asks FBR to update sales tax withdrawal on maize starch

Strategy made to present Pakistan’s interests at WTO

DG Customs Valuation determines values of skimmed milk powder

LCCI-SCCI join hands for economic uplift of the country

FBRChairmanNisarMohammadhas directedoﬃcialsconcernedtode-centralize | See pAge 02 |

Collector Customs Appraisement East Majid Yousfani has asked the FBR | See pAge 03 |

The Commerce Ministry has evolved a strategy to present Pakistan’s stance | See pAge 04 |

DG Customs Valuation has determined the customs values of of skimmed milk | See pAge 12 |

LCCI and SCCI have decided to make joint eﬀorts for economic uplift of the country | See pAge 09 |

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USAID seeks tax exemptions to run development project Saturday, December 12, 2015

National

ISLAMABAD: The United States Agency for International Development, which is working in Pakistan on various development projects, has demanded duty/taxes exemption on the import of equipments for its health related project. According to the detail, Economic Division has sent a letter to Federal Board Revenue (FBR), saying that USAID is going to start a project of maternal and new born child health service for which equipments and other items are required. In the letter, the division said that Pakistan and USA has signed an agreement, under which USAID is exempted from duty/taxes for running its development projects in the country.

FBr decides to decentralise computer system to address IrIS complaints

ISLAMABAD

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M FAIZAN

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ederal Board of Revenue has restored the performance allowance of 493 Pakistan Customs Service officers of BS-16 after three months. The performance allowance (equivalent to 100 per cent of basic pay) in respect of the Customs officers, including 8 Principal Appraisers, 14 Appraisers, 19 Examiners, 3 Valuation Officers, 43 Deputy Superintendents, 259 Inspectors, 30 Sr Intelligence Officers, 89 Intelligence Officers, 6 Inspectors Preventive Service, 15 Preventive Officers and 7 Office Superintendents, was restored with effect from December 09 on completion of their declaration of assets. The allowance of the hundreds of officers was discontinued for three months vide FBR’s Notification No.2111-C-III/2015, dated 09.09.2015. According to the notification, the officials whose performance allowance was also discontinued on account of imposition of any minor or major penalty, besides shortfall of declaration of assets, will however not restored through the notification, until going through fresh process of selection for the allowance.

ederal Board of Revenue Chairman Nisar Mohammad Khan has directed ofRicials concerned to de-centralize the computer system. More powers are assigned to the Regional Tax OfRices (RTOs) and Large Taxpayer Units (LTUs). Prior to this, computer system of the FBR was centralized. Sources told Customs Today that FBR chairman Nisar Mohammad Khan decided to decentralize computer system after receiving lot of complaints from customers regarding IRIS (Integrated Risk Information System) software. Sources said that after decentralization of computer system a marginable decrease in complaints would be witnessed from customers who are using online system for submission of their tax returns. FBR is also considering to assign more powers to Regional Tax OfRices and Large Taxpayer Units in collection of tax revenues. FBR is optimistic that through these measures, tax net will be enhanced and they will be able to collect more revenues, because more decisions will be taken on regional basis to solve tax related issues. Meanwhile, Federal Board of Revenue (FBR) Chairman Nisar Mohammad Khan will reach Islamabad after

performance allowance of 493 customs oﬃcers of BS-16 restored

taking part in negotiations with IMF ofRicials in Dubai. Member FBR Strategic Planning and Reforms and spokesperson of FBR Dr. Mohammad Iqbal is also accompanying him. Sources told Customs Today, that during his talks with IMF ofRicials he apprised them about different measures which the government is taking to enhance tax net. Sources said that chairman FBR assured IMF ofRicials that the FBR will deRinitely achieve its revenue target during the current

Riscal year. He said the government has adopted strict rules to bring those wealthy people under tax net who are avoiding to pay tax. Sources said that Member Strategic Planning Dr Iqbal also apprised IMF ofRicials about different strategies which FBR is adopting to expand tax net. Meanwhile, The Federal Board of Revenue (FBR) is seriously considering a proposal to exempt salary accounts from withholding tax. This concession will be granted to those with salary ac-

counts in banks. Sources of in FBR told Customs Today that a number of complaints were being received by FBR that banks are deducting income tax from their salaries despite their names are already in the list of active taxpayers. Banks were demanding to all these persons to bring “exemption certiRicate” from FBR. Now a proposal is forwarded to FBR, saying that WHT is levied on banking transactions so salaried persons cannot afford such a tax.

Dar to lay Income tax (Second Amendment) ordinance ISLAMABAD

M ArShAD

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ederal Finance Minister Ishaq Dar, will lay the Income Tax (Second Amendment) Ordinance, 2015 before the National Assembly today (Friday). On October 31, President Mamnoon Hussain promulgated an ordinance

to further amend the income Tax Ordinance 2001. The clause-II of Article 89 of the Constitution requires the presentation of this said ordinance before the either house of the parliament for either approval or extension in the tenure for the promulgation of the ordinance. A well-placed ofRicial source at Federal Board of Revenue (FBR ) told this scribe that Finance Minister had gained all the required documents as well as related material from the FBR to reply the questions and ob-

jections of the members in a beRitting manner at the time of presentation of the said ordinance in the national assembly. The source said that Finance Ministry had issued ordinance in the light of recommendations of a committee constituted for this purpose and it dealt with tax on services that was made a minimum tax in case of companies by virtue of omission of clause 79 to Part 1 of the 2nd Schedule to Income Tax Ordinance 2001. The proposed

changes included adding clause 94 to Part IV of 2nd Schedule to the Income Tax Ordinance read with changes brought in section 153 of the Income Tax Ordinance; Minimum tax is made adjustable for maximum of 5 years for the following sectors (Companies not included in clause 94 i.e. sectors not given below cannot opt for such adjustment) freight forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security

guard services, software development services, tracking services, advertising services (other than by print or electronic media), share registrar services, engineering services or car rental services. Under sub-section 4A added to section 153 an application (irrevocable and in writing before the November 15, 2015) to this affect has to be made to commissioner for choosing option of adjustability (by offering its accounts for audit within 30 days of Riling of return for tax year 2016.

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ANF recovers 20kg hashish, 34 bottles of liquor KARACHI: The Anti-Narcotics Force( ANF) Sindh has recovered at least 20 kilograms of ﬁne quality hashish and 34 bottles of liquor from National Highway on Thursday. According to details, on a tip oﬀ, the ANF authorities intercepted a truck (Shehzoor) bearing registration no KN. 7413 and recovered 20 kilograms of high quality hashish and 34 bottles of wine at Sasui Toll Plaza, National Highway. The drugs were kept in secret parts of said vehicle. A case has been registered while raids are being conducted in various areas of the province to apprehend the real culprits involved in the crime. And, further investigations are underway.

customs tribunal orders release of 6,300kg Indian black pepper

Saturday December 12, 2015

National

collector Majid asks FBr to update sales tax withdrawal on maize starch

ISLAMABAD

NAeeM uLLAh tArIQ www.customsbulletin.com

ustoms Appellate Tribunal Bench-II has released 6300 kilograms of Indian Black Pepper which was termed as confiscated by customs department. The appeal was filed by Kashif Skinadar and 23 others appellants through their counsel Raja Gulfraz Ahmed. The petitioners had challenged order, dated September 30, 2015, passed by Additional Collector Customs (Adjudication), Islamabad, who has ordered confiscation of imported Black Pepper. Tribunal’s Member Judicial, Muhammad Maqsood ul Hassan heard the case decided on the first day of hearing.

FIA arrests alleged human traﬃcker from Lahore LAHORE

M IMrAN MehAr

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he Federal Investigation Agency (FIA) has arrested an alleged human traﬃcker, Arshad Khan, from Lahore following intelligence information. The accused was wanted by the FIA in several cases of human trafficking. According to spokesperson of the Lahore FIA, Arshad Khan was involved in many cases of fraud and human smuggling. On intelligence information, the FIA team raided his office and booked him with all record of the office. The accused were stated to be the king of the illegal business of sending the innocent people abroad especially European countries and Gulf countries after extorting big amounts from them by showing them the golden dreams of their lucid future abroad.

KARACHI

AFtAB chANNA

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ollector Customs Appraisement East Majid Yousfani has asked the Federal Board of Revenue (FBR) to update withdrawal of sales tax on import of Maize Starch in WeBOC system as the importers are yet taking undue beneRits of the concessions, it is learnt. “The Board vide SRO 486(I)/2015 dated 30.6.2015 had withdrawn the exemption of sales tax levy on import of Maize Starch classiRiable under HS Code 1108.1200 notiRied vide SRO 11225(I)/2011 dated 13.12.2011”, according to a letter forwarded to Abdul Hameed Memon, Chief (Automation Sales Tax), Inland Revenue Wing, Federal Board of Revenue, by Collector MCC Appraisement East Majid Yousfani. “However, the same was not updated/omitted in WeBOC system and referred HS Code is still reRlected in the SRO 1125(I)/2011’s exemption list in the system. Hence, the importers of this commodity continued to avail inadmissible exemption owing to non-updation of the system”, the collector added. “This Collectorate has identiRied a number of cases where a substantial amount of Rs 12.8 million has been evaded. The recovery for the said amount has already been generated in the recovery module of the WeBOC system. Board is requested to

feed the amendment withdrawing the exemption on import of Maize Starch into the system so that the importers can not avail undue exemption”, the letter concluded. Meanwhile, The Model Customs Collectorate Appraisement-East collected Rs 26.019 billion as duty/taxes under various heads during November, 2015. According to the statistics available with the Customs Today, the Appraisement-East collected Rs 7,646

this collectorate has identified a number of cases where a substantial amount of rs 12.8m has been evaded. the recovery for the said amount has already been generated in the recovery module of the weBoc system.

customs told not to take action against Streit pakistan KARACHI

MuhAMMAD YouSAF www.customsbulletin.com

he Sindh High Court (SHC) has restrained Pakistan Customs until December 22 from taking any coercive action against Streit Pakistan (Private) Limited and a clearing agent for allegedly submitting fake permissions

to import raw material for the conversion of vehicles into bulletproof. Justice Sajjad Ali Shah, who headed a division bench, directed the customs authorities to conduct themselves strictly in accordance with law. The court ruled, “No coercive action shall be taken against the petitioner and its directors or the clearing agent who handled the clearance of raw material on the basis of the NOC dated 28/12/12 till the next date of hearing.” It issued notice to the Interior

Ministry and the customs authorities to Rile their response to the petition till December 22. Streit Pakistan Pvt Ltd petitioned the high court, submitting that the Rirm is engaged in converting normal vehicles into bulletproof which are used by police department as well as parliamentarians and the personnel of law enforcement agencies. The petitioner’s counsel said that the petitioner was issued license by the Interior Ministry for the converting of vehicles into bulletproof.

million under the head of customs duty, while Rs 13,762 million under the head of sales tax, Rs 4,513 million as income tax and Rs 98 million under the head of federal excise duty. SigniRicantly, it collected Rs 2,060 million on the last working day of November 2015 i.e. November 30 that included Rs 530 million customs duty, Rs 1,145 million under the head of sales tax; Rs 379 million as income tax and Rs 5 million as federal excise duty.

pcg apprehends 81 illegal immigrants akistan Coast Guards has apprehended 82 illegal immigrants near Gwadar, Balochistan. According to spokesman of the Coast Guards Major Zafar, the arrested illegal immigrants included 41 Afghan nationals and 41 Pakistanis, including 23 female and children during spot checking at Shahjahan, Jiwani Jetty Road checkpost near Gwadar (Balochistan).

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24 development projects worth Rs 16.3b approved Saturday, December 12, 2015

Business

LAHORE: The Punjab government has approved 24 development projects worth Rs16,251.933 million (almost Rs16.3 billion). The projects were approved in the 17th meeting of Provincial Development Working Party (PDWP) of current ﬁscal year 2015-16, which was presided over by P&D Punjab Chairman Board Muhammad Jahanzeb Khan. P&D Provincial Secretary Iftikhar Ali Sahoo, members of the Planning & Development Board, provincial secretaries concerned and other senior representatives of the relevant provincial departments also attended the meeting.

kSe ends negative as 100-index sheds 163 points shares, having Rs6.3 billion value. As many as 315 companies were active; of which 121 advanced, 179 declined and 15 remained unchanged. Commercial banks remained the highest traded sector with total volume of 55,609,800 shares, while oil & gas marketing companies remained second traded sector with a total volume of 31, 992,850 shares. The three top traded companies were Bank of Punjab with a volume of 45,282,000 and price per share of 9.75 (0.56), Sui South Gas with a volume 28,140,500 of price per share of 45 (1.07), TRG Pak Ltd with a volume 9,204,000 of price per share of 37.25 (-0.70).

KARACHI

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he Karachi Stock Exchange benchmark KSE-100 index Friday remained under pressure and ended in negative zone, shedding 163.41 points to drop to 33048.51 level. The market recorded the highest trading level of 33247.99 points and lowest level of 33033.37 points, with the volume of 58,811,020

Foreign reserves reach $20.4 billion

Strategy made to present pakistan’s interests at wto

KARACHI

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ISLAMABAD

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he country’s total liquid foreign reserves have reached $20,450.9 million on December 4, 2015. According to the break-up of the foreign reserves position, released by the State Bank of Pakistan, the foreign reserves held by the central bank stood at $15,441.4 million, while net foreign reserves held by banks stood at $5,009.5 million.

he Commerce Ministry has evolved a strategy to present Pakistan’s stance on several agenda items, which will be discussed in the upcoming ministerial meeting of the World Trade Organisation (WTO) to be held in Nairobi, Kenya next week. The strategy was discussed in a meeting chaired by

Federal Commerce Minister Engr Khurram Dastgir Khan and was attended by representatives of WTO Wing of the Ministry of Commerce, Ministry of National Food Security and Research, Federal Board of Revenue, Ministry of Textile and Ministry of Industries and Production. The meeting decided that Pakistan’s trade interests will be thoroughly defended in the ministerial meeting through rigorous trade diplomacy. It was agreed that Pakistan will only support and under certain terms and conditions, the proposal to allow countries to have

public stockholdings of agricultural commodities and export the same commodities. The permission for public stock holding was allowed in the Bali meeting in 2013 under certain monitoring and evaluation to support the resource poor farmers of the developing countries and ensuring their food security. Meanwhile, The Securities and Exchange Commission of Pakistan (SECP) has become member of the Islamic Financial Services Board (IFSB), Malaysia, which will further boost Islamic Rinancial services industry in Pakistan.

peSco for reducing deficit, line losses PESHAWAR

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ith the aim to decrease deficit and line losses, the Peshawar Electric Supply Company (Pesco) Thursday organised a workshop at Rural Academy in the provincial capital. Pesco Board of Directors’ Chairman Malik Muhammad Asad Khan presided over the event, while BoD Members Col (R) Alam Zeb, Iftikhar Ahmad Khan, Musawar Shah, Qamar Zamnan, Pesco Chief Executive Syed Hassan Fazil, General Manager Finance Anwar Ul Haq Yousafzai, General Manager Niaz Ahmad, Chief Commercial Oﬃcer Dr Amjad Khan, DG Public Relations Shaukat Afzal, DG HR Muhammad Salim Jahangir, DG Admin & Services Said Khan Mahsud, Company Secretary Khurshid Ahmad Orakzai, Director Legal Raja Ishtiaq Ahmad, all SEs, XENs and SDOs participated in the workshop and discussed diﬀerent matters and experiences in the forum to make Pesco a profit earning entity. The Pesco BoDs specially its chairman listened to the problems of SEs, XENs & SDOs and issued directions in this regard on the spot. On this occasion, Town-II SDO Kashif Farhan talked about the situation boldly for which the BoD Chairman granted him a reward of Rs10,000 from his own pocket.

Japan hands over 34 hybrid vehicles to Nh&Mp ISLAMABAD

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iroshi Inomata, Ambassador of Japan to Pakistan, Thursday handed over 34 hybrid vehicles to the National Highways and Motorway Police (NH&MP). The government of Japan will provide in total 123 vehicles to National Highways and Motorway Police and the Ministry of Interior

through Japan International Cooperation System (JICS). Total cost for the provision of the vehicles is around 500 million Japanese Yen, an equivalent of Rs435 million. These hybrid vehicles were manufactured by Japanese company using more efficient cutting edge technology, said a statement here Thursday. This is part of the assistance from the Government of Japan to Pakistan in the form of Japan’s

Non-Project Grant Aid (NPGA), aim of which is to contribute to the promotion of socio-economic development efforts in developing countries. The handing-over ceremony graced by Sheikh Aftab Ahmad, Minister of State or Parliamentary Affairs was held at the NH&MP Lines Headquarter. The Ambassador Inomata while speaking on the occasion said, “Security enhancement is indispensable for

successful socio-economic development in Pakistan and the Government of Japan remains committed to improving capabilities of law enforcement agencies in Pakistan”. In the field of security and law enforcement, the Government of Japan, through Japan International Cooperation Agency (JICA), has provided training opportunities to around 45 Pakistani police officers for the last ten years in

areas such as forensic science, drug control and terrorism investigation. In addition, Japan also agreed to install scanning devices for the purpose of security at three international airports and at two international ports in Pakistan and now the project is currently underway. From the environmental point of view, hybrid vehicles use less fuel and emit less greenhouse effect gases than conventional cars.

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Saturday, December 12, 2015

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ederal Board of Revenue (FBR) Inland Revenue-Operation (IR-Ops) Member Dr. Irshad Ahmad has expressed his resolve to “meet and beat” the ambitious revenue collection target of Rs 3014 billion for the Rinancial year 2015-16. He showed this determination in an exclusive interview with Customs Today, adding that the Board has taken good start by attaining a growth of 28 percent during Rirst month of the new team in ofRice. The soft spoken FBR member, who was highly praised by Finance Minister Ishaq Dar for his excellent performance, believed that motivational doses to motivate the ofRicials will play vital part for paying their duties with devotion and integrity in order to achieve the set revenue target. He is of the view that the FBR ofRicers are very energetic and hardworking however, “We need to motivate the ofRicers enabling them to produce

good results,” Khan said. “If we own them, they will deliver good results,” he said, adding that he has taken the Rinance minister on board in this regard and he has assured his full support for resolving the minor and major issues of the staff to make them more concentrated to their assignments of revenue collection. The Rinance minister has pledged to lend his hand to motivate the ofRicers and employees, Dr Irshad Khan informed, saying that the minister has agreed to visit to the tax houses and meet the ofRicers across the country, including Karachi and Islamabad following Lahore. Though he has been given an extraordinary assignment and with the objective to discharge his duties, he would put all his energies and go to every extent for the wellbeing of the department and the ofRicers. Revenue service, which is a backbone of the national economy, has enormous potential, he said, urging the ofRicers of FBR to motivate the taxpayers politely to pay

their taxes. He said that he has always been very polite towards the taxpayers throughout his career and never got failed. He added that he will follow suit and will be successful by the grace of Allah Almighty He shared that he has formulated a comprehensive strategy to bring about administrative and structural changes and he has received positive response, in this regard.

as hmad h A d a h s Dr. Ir solve to e r s i h ed express d beat” the n “meet a s revenue u ambitio rget of rs on ta collecti ion for the ll 3014 bi r 2015-16. l yea financia

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eDItorIAL

Investment in energy sector

he chief of the Alternative Energy Development Board has claimed that renewable energy sector has received a huge investment of $3 billion during the last one year, showing that the climate is conducive for foreign investors in the country. Pakistan has been facing severe energy crisis for the last two decades and various efforts have been made to overcome the problem. The private sector has been allowed over the years to install power projects and various wind and solar energy projects are initiated to meet the growing demand of electricity in the country. However, in the absence of an effective check and balance, many projects proved to be utter failure, including Nandipur power project and Quaid-e-Azam Solar Park. All the European countries, where sun is quite rarely seen, are shifting their focus on solar energy. Pakistan, on the other hand, is situated in the best location where sun shines with all its might all over the year and is potentially solar energy rich country. There is a need to tap this natural gift rather than taking cosmetic steps as we are in such a habit in this country. The $3 billion is a lot of money if this investment is actually materialized as the government has disappointed the nation on many occasions in the past. For example, instead of mass import of voltaic cell from China, it would have been plausible to manufacture these kinds of cells in the country. Voltaic cells convert heat into the electricity and its technology is not a rocket science. Unfortunately, the commission mafia has got the manufacturing of this cell banned in Pakistan. Therefore, you have only one option left. Import it from China at any rate.The government should invite giant multinationals to set up their plants in Pakistan and this will not only bring investment, but also transfer of technology. There is a need to make Pakistan a destination of choice for potential investors and the government steps should entail a series of concessions for the local and foreign investors. There is a vast potential in energy sector, but the government should have to introduce a lucrative tariff structures, a robust policy framework, and safeguards for investors’ money.

prospects of regional trade T

LAHORE

Dr AFtAB AFZAL

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hough business and trade moots in Pakistan, which are arranged by the government agencies to spell out economic prospects of the country, often turn into social gatherings and without achieving any goals in real terms. However,experts do hope positive effects of the business moots in the long run. The China-Pakistan Economic Corridor is the best example for the South Asian countries to enhance regional connectivity and boot SAARC trade. But for the purpose, the leaders will have to work overtime to revive the

South Asia Free Trade Agreement and evolve standard operating procedures to increase volume of trade within the states in the region which is currently at five percent.The experts at the 8th South Asia Economic Summit, organised by Sustainable Development Policy Institute, hoped that a thaw in relations between Pakistan and India is necessary to enhance regional trade. The future of South Asia lies in the regional trade and development of infrastructure is the basic requirement to achieve this end. The China Pakistan Economic Corridor is $46 billion project with focus not only on infrastructure, but also on power and energy projects. If the coun-

tries in the region want to enhance trade, they will have to offload the burden of the bitter past and take a fresh start. At least one third of the world population lives in this region with only 3 percent of the global trade.Half of the population in South Asia lives below the poverty line. Pakistan on its part is enhancing connectivity not only with China, but also with Afghanistan and beyond. The CASA 1000 project with Central Asian States and the economic corridor project with China will change the lot of this nation. But again, the countries in this region are the hostage of the bitter past as the leaders are refusing to learn from the European countries. According

to experts, the international trade has fallen from 10 percent to below 2 percent due to global economic crisis and losses can be covered by enhancing regional trade. Despite all odds, the civil society in South Asian region is very strong it needs to persuade their respective governments to soften their stances. On its part, the civil society in Pakistan is very strong and is effectively doing its job. On the government side, Pakistan has signed mega projects like Turkmenistan-AfghanistanPakistan-India (TAPI) and Central Asia and South Asia (CASA), which will pave the way for regional trade and investment. This is not the era of conflicts but cooperation.

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Alibaba E-Auto inks 8-year deal with FIFA BEIJING: Alibaba Group Holding Ltd, China’s e-commerce giant, has signed an eight-year partnership agreement with FIFA, in which its Internet car brand Alibaba E-Auto will be an official supporter of the FIFA Club World Cup. The announcement was made in Tokyo ahead of the start of this year’s competition on Thursday, in which China’s five-time champion Guangzhou Evergrande Taobao will play against other continental giants. The partnership will run until 2022 and promote what is Alibaba’s first car business, which is scheduled to be launched next year. Beginning this year, Alibaba E-Auto will have strong brand presence in both stadiums and during TV coverage – a strong global platform on which to launch the upcoming automobile project, it said. “Sports is at the intersection of Alibaba’s strategic themes of health and happiness,” said Zhang Yong, CEO of Alibaba.

cDA asks to focus on developmental works in markets to facilitate business activities ack of basic infrastructure in markets was a major stumbling block in promoting business activities and CDA should focus on undertaking developmental works, especially in I11 Markaz and other markets to facilitate growth of trade activities, observed Atif Ikram Sheikh, president, Islamabad Chamber of Commerce and Industry while exchanging views with a delegation of Traders Welfare Association, I-11 Markaz that visited ICCI led by its president Afsar Khan. Atif Ikram Sheikh said CDA was paying no attention to the maintenance and repair of roads of I-11 Markaz and industrial areas since long due to which their

condition has become pathetic. He said the situation of Islamabad Dry Port and Police Lines roads was worst due to which traders and industrialists were suﬀering great losses while frequency of daily accidents was on the rise. He called upon the chairman CDA Maroof Afzal and Member Administration Amir Ali Ahmed to pay urgent attention to these issues and order for early renovation of broken roads in I-11 Markaz as well as industrial areas. He said street lights and footpaths also needed repair and renovation to improve the look of the federal capital. Speaking at the occasion, Afsar Khan, president, Traders Welfare Association, I-11 Markaz said not a single road in I-11 sector was in better condition and it seemed that this sector was outside the jurisdiction of CDA as the civic body was paying no attention to its development. —CB Report

Saturday December 12, 2015

Chambers

plenty of room for growth in pak-uS trade relations: Brian heath U

KARACHI

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S Consul General in Karachi, Brian Heath has said that although the current trade volume between United States and Pakistan was above $5 billion and Pakistan enjoys trade surplus but this trade volume was not a lot and there was plenty of room for growth. “This is the reason why most of our assistance is focused on helping Pakistan’s economy grow”, he added while exchanging views during his visit to the Karachi Chamber of Commerce and Industry (KCCI). Political Economic Section Chief of US Consulate in Karachi, Chad Peterson, Chairman Businessmen Group and former president KCCI Siraj Kassam Teli, vice chairman BMG Zubair Motiwala, president KCCI Younus Muhammad Bashir, senior vice president KCCI Zia Ahmed Khan, vice president KCCI Muhammad Naeem Sharif, former president KCCI, Abdullah Zaki and KCCI managing committee members were present at the meeting. “We (the United States) talk about stronger democracy in Pak-

istan, we talk about stronger security environment and we talk about stronger economy as these three things are very much in the interest of business community and the future generations of Pakistan”, Brian Heath said. US Consul General was of the opinion that Pakistan has an important role to play not only for its own population but also for the entire region. “A stable South Asia is critical to world’s peace and world’s economy. We can’t have a stable South Asia without a stable Pakistan”, he added, keeping in view the

geographical location of Pakistan. He further commented that Pakistan and United States have been enjoying long-lasting relations from the very beginning which were based on mutual trust and shared interest. “Although these relations have seen many ups & down, twists & turns, thrills & chills from time to time, but currently the Pak-US ties have improved and were becoming stronger”, he added. Speaking on the occasion, chairman Businessmen Group and Former President KCCI Siraj Kassam Teli said

LccI-SccI join hands for economic uplift

LAHORE

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he Lahore Chamber of Commerce and Industry and Sialkot Chamber of Commerce and Industry have decided to make joint efforts for economic uplift of the country. It was agreed at a meeting between the LCCI president Sheikh Muhammad Arshad and vice president of Sialkot Chamber of Commerce and Industry Syed Ahtesham Mazhar Gilani here at the Lahore Chamber of Commerce and Industry. Both the Chambers also agreed to keep an eye on the trade and invest opportunities and ensure their timely exchange besides sharing their trade and economic research work. The LCCI president Sheikh Muhammad Arshad said collaboration between the two chambers

would go a long way and would help business community of Lahore and Sialkot to Rind new destinations for trade and investment. He also threw light on ongoing economic challenges and stressed the need for collective approach to bring country out of these problems. He said that both the Lahore Chamber of Commerce and Industry and Sialkot Chamber of Commerce & Industry have their own strengths and the joining of hands by the two institutions would bring positive change at the economic front. The LCCI president said that Pakistan could not make an impact at international level only because of lack of awareness about latest business methodologies. Had awareness been there for the business community, the situation would have been far better today. Sheikh Muhammad Arshad said that the Lahore Chamber of Commerce and Industry is working

on an important report on Ease of doing business in Pakistan and also collecting necessary business-related data that would help bring convert certain unorganized sectors into organized ones. He said that both chambers can contribute a lot in the further development of mutual trust and understanding of problems relating to trade and industry located in Lahore and Sialkot. He said that collective stand to safeguard the interest of business community is need of the hour. The LCCI president also urged the business community of Lahore and Sialkot to pay attention towards branding and innovative approach which holds the key to success for businesses that want to global. He said that the Lahore Chamber of Commerce and Industry would extend every possible help to Sialkot Chamber of Commerce & Industry for highlighting the strength of that area.

that although many people have been saying that relations between Pakistan and United States have been improving but these relations were not as good as they should have been. Appreciating the US Consulate in Karachi for its constant support to KCCI, Siraj Teli advised the Consul General to create some kind of liaison or a committee with the Karachi Chamber to not only discuss the economic issues but also the image of Pakistan and the image of Karachi city with a view clarify many misconceptions about security situation of Karachi.

garments manufacturers call for textile package he representative of garments manufacturers has called for early announcement of textile package as the delay is further deteriorating the largest industrial sector of the country. Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) acting Chairman Arshad Aziz said this in a statement. He said that he current scenario is extremely worrying the precious foreignexchange earning industries and the ever increasing cost of utilities and inputs is causing closure of many units across the country. He said that biggest foreign exchange earning sector of textiles that was touching almost $4 to $5 billion before PPP regime is now, dwindling and fallen to less than $2 billion. —CB Report

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Japan’s court sends two Russians to jail for smuggling 30kg drugs Saturday December 12, 2015

World

TOKYO: Japan’s Sapporo district court sentenced two Russian citizens to 12 and 11.6 years in prison for smuggling 30 kg of drugs into the country, the RIA Novosti news agency reported Thursday. Sergei Titov, 26, and Roman Andrushenko, 31, were also ordered to pay $41,000 in ﬁnes. The Russian citizens were arrested in January on Hokkaido Island, along with a Japanese national, RIA Novosti reported at the time. They travelled to Japan on a Cambodian cargo ship in December 2014, smuggling 26.7 kilograms of psychotropic substances to the country. Titov and Andrushenko planned to sell the drugs, valued at nearly $15 million on the black market, Japanese police said.

uS Drug enforcement seized 88,000 marijuana plants in 2015

Malaysian man arrested in wildlife parts smuggling case KUALA LUMPUR

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SAN DIEGO

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ith just three weeks left in the year, marijuana eradication efforts in the San Diego area in 2015 have netted more than 88,000 marijuana plants seized at nearly 100 cultivation locations, ofRicials announced Thursday. Over the same period, the U.S. Drug Enforcement Administration’s Narcotics Task Force and its partner agencies removed roughly 52,400 cannabis plants from public lands, shut down 34 hash-oil labs, conRiscated trafRicker assets valued at about $464,000 and arrested 115 suspects, the DEA reported. The raided cultivation sites — 60 of them outdoors and 38 inside structures — posed “a signiRicant threat to public safety,” said William Sherman, special agent in charge of the San Diego DEA Rield ofRice.

The illicit operations also were a signiRicant drain on one of the region’s most vital resources, Sherman said. “All grows seized on public lands and most on private property involve theft of water and diversion of natural sources of water,” he told reporters. “During this time of drought, San Diegans should be concerned that our water is be-

ing stolen for a criminal enterprise.” OfRicials estimate that it takes roughly 450 gallons of water to bring a single indoor cannabis plant to harvest and twice that amount for one grown outdoors. Based on those numbers, the marijuana seized locally this year used up some 72 million gallons of water, according to the DEA.

hong kong customs discovers 14 uS authorities destroy counterfeit packets of ‘hash noodles’ at airport ong Kong customs has picious of a well-to-do business man wine worth $30m blocked one man’s attempt to bringing hordes of shitty noodles to undreds of bottles of counterfeit wine, seized from the Rudy Kurniawan case, are being destroyed. Over 500 bottles of the counterfeit wine, deemed unable to sell, will be crushed at a recycling and composting facility in Southeast Austin. Kurniawan was convicted of fraud for selling 500 bottles of counterfeit wine claiming it was authentic and vintage. A total of 5,000 bottles of wine was taken from Kurniawan; of those bottles only 500 were counterfeit. A federal court found Kurniawan guilty in 2013 for producing and selling $30 millions worth of the counterfeit wine. He was sentenced to 10 years in prison. The remaining 4,711 authentic bottle of wine were auctioned oﬀ. A team in France authenticated the bottles of wine that were actually vintage.—CB Report

introduce a new Asian fusion dish into the country – hash noodles. On Sunday, a 49-year-old “businessman” (so he calls himself) was arrested for trying to smuggle about Rive kilograms of cannabis resin (hash) into the country… inside 14 packets of instant noodles. Credit to the gentleman for his creativity on the culinary front, but customs were probably a little sus-

Hong Kong. They’re not exactly hard to come by here. The man arrived in the territory from Kolkata, India, and had Rlown via Kunming, Yunnan. He appeared in Tsuen Wan Magistrates’ Court yesterday, after being charged with one count of trafRicking in a dangerous drug. Don’t hold out for weed noodles to appear on menus any time soon then.—CB Report

ildlife agents in Portland arrested two Malaysian men Friday for allegedly using mail parcels to smuggle illegal wildlife parts, including orangutan skulls, into the United States. Wildlife agents in Portland arrested two Malaysian men Friday for allegedly using mail parcels to smuggle illegal wildlife parts, including orangutan skulls, into the United States. Eoin Ling Churn Yeng, 35, and Galvin Yeo Siang Ann, 33, appeared in U.S. District Court on Monday. According to a criminal complaint, the men were owners of an online business that smuggled wildlife into the U.S. between 2004 and 2015. The case started when a routine search of a package being shipped to a home in Forest Grove, Ore., re-

vealed a beak from an endangered bird called a helmeted hornbill. Carjacking suspect killed in ‘barrage’ of gunRire after wild police chase through Seattle Every time Adrian Peterson touched the ball the Seahawks swarmed, and that strategy held him to just 18-yards rushing.Seahawks’ blowout of Vikings a scary sight for rest of NFL On 3rd and 3, Seattle’s Frank Clark gets through the line and drops Minnesota quarterback Teddy Bridgewater for a 4-yard loss in the Rirst quarter; forcing a punt.Instead of crediting Seahawks defense, Vikings should blame QB Teddy Bridgewater Unlimited Digital Access. $1 for 4 weeks. Wildlife ofRicials mounted an undercover investigation called “Operation Pongo” the scientiRic name for orangutans. The complaint says the Malaysian men sold agents three orangutan skulls, four helmeted hornbill skulls and several other illegal animal parts.

Indian police seize illicit liquor worth rs 7 million

he Kasganj district police seized a big haul of illicit Indian made foreign liquor and country liquor consignment worth Rs 70 lakh which was being brought from Haryana to be distributed in villages across Etah & Kasganj. In a raid conducted by police on intervening night of Wednesday and Thursday, one truck was seized ferrying more than 1100 cartons of liquor. However, no one was arrested as accused managed to Rlee. Speaking to TOI, superintendent of police for Kasganj Himanshu Kumar said, “At around 11:30pm, we received an

anonymous input regarding several mini trucks queuing up in remote area of Pachaita and Nizampur for illegal liquor consignment.” “When we reached the spot along with additional police force, we found nearly 100 cartons of liquor bottles lying in open Rield. Further, when our police team patrolled nearby area, we found an abandoned truck in which liquor worth over Rs 60 lakh was kept,” he said. He added further, “The truck was registered to Jind district of Haryana and the liquor bottles were coming from Chandigarh.—CB Report

Singapore’s cNB nails down drug racket

SINGAPORE

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rugs worth more than S$103,000 were seized yesterday in a Central Narcotics Bureau (CNB) operation. A suspected drug syndicate leader and three other suspected drug offenders were also arrested.

The alleged drug syndicate leader, a 55-year-old Singaporean man, was arrested when CNB ofRicers raided a unit along Hamilton Road yesterday evening. They recovered a total of more than 900g of heroin, about 400g of psychotropic drugs like ‘Ice’ and ketamine, more than 800 Erimin-5 tablets and a small amount of cannabis and opium during the raid.

Three digital weighing scales and an improvised drug-smoking apparatus were also found. A 43-year-old Malaysian man, who was spotted entering and leaving the unit at Hamilton Road, was also intercepted. Erimin-5 tablets and cash of S$6,000 were recovered from the man. A 37-year old Singaporean man, thought to be an associate of the

suspected drug syndicate leader, and a 55-year-old Singaporean man, believed to be a drug abuser, were also caught in follow-up action yesterday. The CNB said in a statement that investigations into the drug activities of the four suspects are ongoing. Anyone caught trafRicking in more than 15g of pure heroin faces the death penalty under the Misuse of Drugs Act.

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US tire shipments reach 312.1m units in 2015 WASHINGTON: Total U.S. tire shipments will reach 312.1 million units in 2015, up 0.4 percent from 2014, according to the latest forecast from the Rubber Manufacturers Association. The biggest increase by category in 2015 will be in original equipment passenger tires, which should go up to 50 million from 2014’s 47.8 million, the RMA said. OE truck tires also will rise in 2015, to 6.2 million from 5.7 million, it said. Replacement truck tires will rise 3 percent in 2015, to 18 million from 17.4 million in 2014, the association said. Replacement light truck tires also should do better in 2015, rising 0.7 percent to 28.9 million from 2014’s 28.7 million, it said.

cIt provides $40m in financing to Valløby Shipping Ltd IT Group Inc. a global leader in transportation finance, announced that CIT Maritime Finance provided a $40 million senior secured credit facility to Valløby Shipping Ltd. to acquire a fleet of chemical tankers. Valløby is a newly established ship-owner backed by a private equity fund. Financing was provided by CIT Bank, N.A., the principal bank subsidiary of CIT. Terms of the transaction were not disclosed. “The vessels in this fleet are young, epoxy-coated, double-hull chemical tankers that are well-positioned to achieve high utilization in the improving chemical tanker market,” said Dan Jespersen, spokesman for Valløby Shipping. “This acquisition establishes Valløby Shipping in the sector and positions the company to expand its fleet as opportunities arise. CIT’s efficient execution, professional approach and deep understanding of the tanker industry were crucial to the success of this transaction.”—CB Report

Ports & Shipping

Saturday December 12, 2015

gener8 gets $260m loan for VLcc newbuildings

Shippers call for urgent action on maritime co2 emissions s the COP21 climate change talks get underway in Paris, the Global Shippers’ Forum (GSF) has called on the shipping industry to reach agreement on a market-based measure for carbon reduction or risk having rules enforced. The GSF has released a statement outlining its view on how the maritime sector should address the issue. It says it is keen to avoid a patchwork approach of national CO2 targets which would be complex to manage and wants the shipping industry to be proactive in agreeing voluntary measures. The EU is already proceeding with its own Monitoring, Verification and Reporting system in absence of an IMO agreement, said the GSF release. Shippers are under increasing pressure to respond to the climate change challenge – they must understand, monitor and report their supply chain carbon footprint in order to meet their reporting and regulatory obligations. However, they are dependent on the shipping industry to provide accurate data on emissions and the GSF believes urgent action is now needed to agree targets. “All stakeholders agree that additional measures are needed to reduce CO2 emissions from the maritime sector. The debate now is how to get this done. —CB Report

hong kong port’s cargo decreases 16.5% in Q3 he Census and Statistics Department (C&SD) today (December 7) released statistics on vessels, port cargo and containers for the third quarter of 2015. In the third quarter of 2015, total port cargo throughput decreased by 16.5% compared with a year earlier to 63.8 million tonnes. Within this total, inward and outward port cargo decreased by 21.5% and 8.4% to 36.9 million tonnes and 26.9 million tonnes respectively. For the first 9 months of 2015, total port cargo throughput decreased by 9.9% compared with a year earlier to 200.6 million tonnes. Within this total, inward and outward port cargo decreased by 13.8% and 3.5% to 119.4 million tonnes and 81.2 million tonnes respectively.—CB Report

BEIJING

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YSE-listed Gener8 Maritime has agreed a senior secured credit facility for up to $259.6m of debt Rinancing for the Rirst four of its six VLCCs being built in China. The funds have been collectively been provided by Citibank, the Export-Import Bank of China (CEXIM) and the Bank of China. The facility has a 2.0% margin over LI-

BOR and a 15-year amortisation proRile, Gener8 said. “We expect to close on Rinancing for the remaining two vessels in 2016. These agreements represent a key strategic milestone for our company as we continue to expand our Rleet,” said Gener8 Maritime’s chairman, Peter Georgiopoulos, in a statement. The debt Rinancing has been secured against four of Gener8’s Chinese VLCC newbuildings: Gener8 Strength (delivered this quarter), Gener8 Supreme, Gener8 Success and Gener8 Andriotis. Gener8 has already made its Rirst drawdown from the facility, with which it has re-

Rinanced its October 21, 2015 term loan facility with Citibank. Nine of Gener8’s 21 VLCC newbuildings have been built in China, with two under construction in the Philippines and the rest in South Korea. Of the Chinese vessels, three have already been delivered this year and the remaining six will follow in 2016. “We believe that the ability to raise close to $2.0bn in Rinancing during 2015 demonstrates the commitment and support we have from our lenders and their belief in the prospects of our industry,” commented Leonidas Vrondissis, Gener8 Maritime’s CFO.

uS allows trade through Myanmar ports

LONDON

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he U.S. allowed a temporarily work-around for trade to Rlow through Myanmar where sanctions would otherwise prevent it. The U.S. Department of Treasury’s OfRice of Foreign Assets Control, or OFAC, issued a general license Monday that authorizes, for six months, trade-related transactions that are “ordinarily incident” to exporting goods, technology or

non-Rinancial services to or from Myanmar that could trip sanctions wires, it said. Treasury stressed the license doesn’t allow any transactions to, from or on behalf of those under sanctions, nor does it change other prohibitions in the Myanmar sanctions program. “We took this action in response to reports of slowing trade in and out of Burma,” said a Treasury spokeswoman, using the other name for the country. “Supporting Burma’s economic development including the encouragement of normal trade with non-

sanctioned businesses in Burma is a key U.S. foreign policy goal,” she said. The move comes after banks had complained to OFAC that they couldn’t Rinance trade through the country’s main port terminal because it’s owned by a man called, in leaked U.S. diplomatic cables, the old military junta’s “top crony.” Stephen Law was placed under sanctions in 2008, and his Rirm, Asia World Co., was targeted in February 2010. The Rirm, which has ties to everything in Myanmar from airports to hotels, has thrived while under

sanctions, according to a Wall Street Journal report from August. Its subsidiary provides the most efRicient way of getting goods into Myanmar by sea, AP reports. The company has said it hasn’t received special treatment from Myanmar’s military junta or from the government, and that it simply follows the law. While not identifying the company by name, a U.S. Department of State press release on the license noted “reports of unintended interruptions of Burmese trade due to sanctions concerns” with a key port in Yangon.

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Customs Court sends alleged currency smuggler on remand KARACHI: The Special Court of Customs Taxation and Anti-Smuggling has remanded an alleged currency smuggler into the custody of Pakistan Customs for interrogation. Judge Syed Faiz Rasool Rashdi granted 10-day physical remand of the suspect following the request of the customs oﬃcer. According to the details, the customs authorities had arrested Muhammad Zahid from Jinnah International Airport, Karachi for allegedly trying to smuggle 143,000 Dirham from Karachi to Dubai.

Saturday, December 12, 2015

CUSTOMS BULLETIN

Dg customs Valuation determines values of skimmed milk powder, instant milk powder KARACHI AFtAB chANNA

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he Directorate General of the Customs Valuation has determined the customs values of of skimmed milk powder, instant milk powder vide Valuation Ruling No 780/2015. The practice to determine the values of skimmed milk powder and instant milk powder were done under Section 25(A) of the Customs Act, 1969. According to details, Valuation Ruling No 708/2015 was issued on 23-01-2015 by revising the values of skimmed milk downwardly as notiRied earlier vide Valuation Ruling 696/2014 dated 01-10-2014. The importers through Karachi Chamber of Commerce and Industries have been requesting since August 2015 for further downward revision of value on the plea that international market of the goods in question have further gone down. The KCCI forwarded some invoices as well as internet websites for checking the prices in international markets. On issue of sales tax invoices, they stated that since the milk is exempt from sales tax therefore they were not in a position to furnish the same. In view

of the said situation, they were requested to furnish the import invoices along with bills showing the prices on which they were selling milk in the market. Since they were

not forthcoming to furnish the bills, and issue was lingering on, it was decided to hold a meeting with them and it was scheduled on 9-12-2015 requesting each importer to bring

the aforementioned documents along with him and furnish the same at the time of the meeting. Henceforth, skimmed milk powder (in bulk packing) to be imported form New

Zealand, Australia, West, Europe, Canada and USA would be assessed to duty and taxes at $ 2.60/kg, while from Iran at $ 2.00/kg, and other origins $ 2.50/kg.

Faisalabad ASo seizes smuggled goods worth rs 45.56m in Nov FAISALABAD

NAeeM SheIkh

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ollectorate Customs Faisalabad Dr ZulRiqar Ali has lauded the performance of Anti-Smuggling Organization during the month of November. Talking to Customs Today, Faisalabad Customs collector Dr Zulafqar Ali said that the department has showed outstanding performance in November. He said he

will try his best to maintain this pace of work to achieve the yearly revenue target under all heads. He also appreciated the performance of the ASO as it foiled a number of smuggling bids in the region. According to ofRicial statistics Customs Faisalabad registered 23 cases during the said period and conRiscated smuggled vehicles which were brought into country without payment of customs duty and taxes. While 39 cases were registered worth Rs 45.56 million in the same month of November Riscal year 2014-15. While 18 cases registered of smuggled vehicles

worth Rs 9.72 million, 21 case were registered in shape of contraband goods worth Rs 35.86 million. The Anti Smuggling Organization Faisalabad which covers Jhang, Mainwali, Sara-e-Muhajir, Sargodha and Faisalabad. ASO Faisalabad impounded four vehicles including Toyota Land Cruiser, Toyota Premio, Toyota Vitz and Toyota Hilux Surf and others valued at Rs 1.9 million. During different raids ASO Faisalabad seized contraband goods worth Rs 15.92 million. These items includes Iranian diesel, black paper, smuggled black

tea, foreign origin ceremic tiles and cloths. The Anti Smuggling Organization of the collectorate also conducted raids on routes which leads to Quetta, Qila Saifulah Zhob, Dera Ismail Khan, Bhakkar, Mainwali, DG Khan, Muzaffargarh, Peshawar, Kohat, Bannu, Sirai Mohajir, Jhang, Nowshera, Attock, Rawalpindi. Meanwhile, The Faisalabad adjudication collector Raja Tahir Majeed issued ONOs against smuggled cloth. Customs intelligence received credible information regarding smuggled cloth. It intercepted truck trailer near Zonal ofRice Leopard Courier Service near

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

Susan Road Madina town Faisalabad bearing registration No. TLQ588 loaded container No. CYKU698358-0. Customs intelligence has seized cloth under section 168 of custom act 1969 and vehicle along with container used for transportation of smuggled cloth were also seized under section 157 of the customs act 1969. The customs intelligence lodged an FIR No. 05/2015 was registered against the consignor and consignee of the seized cloth. On the charge of being smuggled non duty paid M/S Imran Enterprises Karachi through their legal counsel.