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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
Daily
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Karachi, Wed December 13, 2017
ISLAMABAD
TARIQ DERYA
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he Customs North Region earned over Rs360million of extra Sales Tax against an assigned revenue target for the month of November Fiscal Year 2017-18. The sources notiSied that, during the month of November Financial Year (FY) 17-18, the North Region, comprising collectorates of Islamabad, Peshawar, Samberial and Gilgit-Baltistan), generated Rs1645.90million
as Sales Tax (ST) whereas it was assigned a target of Rs1278.74million. The North Region received Rs1264.23million of ST during corresponding November FY 16-17. The Collectorate of Islamabad collected Rs680.95million against an allocated revenue target of Rs421.81million of ST while it got Rs431.79million under the same head during the previous November FY16-17. The Collectorate of Peshawar generated Rs681.18million against an earmarked target of Rs646.86million as ST whereas it did
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Rs638.28million under the same head during corresponding November FY16-17. The Collectorate of Samberial collected Rs29.42million as ST against an assigned target of Rs20.49million of ST while the collectorate did Rs20.10million under the same head during previous November FY16-17. The Collectorate of GB earned a surplus revenue of Rs254.35million against an allocated target of Rs189.58million as ST whereas the collectorate generated Rs192.06million of ST during corresponding November FY16-17.
Customs AFU collects Rs272.14 million extra revenue
PCA unearths tax evasion of Rs 9.23m by M/s Shamil & Sons
Collector Preventive Faiz assigns guard duty to inspectors, sepoys
‘Pak-China ties model of state-to-state relations’
MCC Hyderabad gets Rs304.833 million of duties & taxes during six days
AFU received Rs.272.14m extra revenue against assigned proportional revenue | SEE PAGE 02 |
PCA has detected duties and tax evasion of Rs 9.23m by M/s Shamil | SEE PAGE 03 |
Preventive Collector Faiz issued a notification in which he placed various | SEE PAGE 04 |
Sartaj Aziz has said that China had become a reliable partner in Pakistan’s | SEE PAGE 14 |
MCC Hyderabad has generated Rs304.833million customs duties | SEE PAGE 16 |
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SC directs Collector Appeals to decide pending appeals within 15 days Wednesday, December 13, 2017
Islamabad
ISLAMABAD: The Supreme Court has referred a prime mover case to Collector Appeals to decide the pending appeals within 15 days and submit compliance report to the SC Registrar. The Customs had filed an appeal before the Supreme Court impugning order passed by a division bench of High Court of Sindh dated 14-6-2017 wherein appellant/customs was ordered to release the vehicles while retaining original documents of vehicles.
Customs AFU collects Rs272.14 million extra revenue
ISLAMABAD
ISLAMABAD
NAEEM ULLAH TARIQ
TARIQ DERYA
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he Customs Appellate Tribunal disposed of a customs reference filed by M/s Royal Group after hearing arguments from sides. A division bench of the tribunal comprising Members Tribunal, Syed Muhammad Anwar and Muhammad NasirKhan heard the case being contested against Directorate General of Investigation and Intelligence, Islamabad. The bench remanded back the matter to the departmental adjudication for rehearing. The bench also directed the adjudication to decide the matter in the light of law and issue a speaking order in this regard. During last hearing the bench had directed the parties to conclude arguments and submit record relating to the case. The bench had also received record on departmental proceedings pertaining to the case. Earlier, the bench had dismissed a customs case filed by M/S Kohinoor Trader. M/S Kohinoor Traders appeared before the bench demanded time from the bench for finalizing preparations for the case. The bench heard the arguments from sides and had reserved the decision last week. M/s Kohinoor Traders had filed cases against Directorate of Intelligence and Investigation, Islamabad.
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he Air Freight Unit received Rs.272.14 million extra revenue against assigned proportional revenue target for November Financial Year 2017-18 under head of all duty taxes. According to details told by sources of Air Freight Unit (AFU) that AFU showed satisfactory performance during 29 days of November FY17-18 against assigned proportional revenue collection target, the sources explained that during 29 days the AFU earned Rs.859.39 million of revenue under head of all duty taxes whereas the AFU was assigned proportional revenue target Rs587.25 million under same head. The sources notify that during the above said period the AFU was assigned revenue collection target of Rs.220.98 million under head of customs duty (CD) while it was received Rs.255.06 million collection against the target, sources added that the AFU earned extra revenue against assigned target amounting Rs.34.08 million under head of CD during 29 days of November FY17-18. The AFU was earned Rs.401.68 million under head of Sales Tax (ST) against assigned revenue target Rs.243.02 million under head of ST during 1st to 29th November FY17-18, the sources added that during said period the AFU was
Customs Tribunal rejects reference filed by M/s Royal Group
earned extra revenue Rs.158.66 million under same head during above said period. Sources notify that during 29 days of November FY17-18 the AFU was earned Rs.202.65 million under head of In-
come Tax (IT) whereas it was assigned proportional target Rs.123.25 million under head of IT, the sources was added that AFU was surpassed assigned revenue target with amount of Rs.79.04
million. The sources told that AFU will not only achieved the assigned revenue target for 2nd Quarter FY17-18 whereas it will be earned extra revenue during said period under all heads.
Customs car cell impounds NDP Land Cruiser worth Rs6.8m
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ISLAMABAD
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he Customs car cell of Model Customs Collectorate impounded a non duty paid Land Cruiser worth Rs.6.8 millon. Superintendent car cell Abdul Malik told Customs Today that on tip of Collector Saeed Khan Jadoon car cell conducted a raid at Islamabad near ETO ofSice and intercepted the non-duty paid Land
Cruiser adding that after interception the car cell staff asked the possessor to provide original documents of the car, but he failed to do so. The Superintendent inform that after furnished Sirst hand investigation the car cell seized the vehicle, model 2003, chassis No.V2J 1200001353 and brought it to the state warehouse, adding the estimated value of the vehicle was Rs 6.8 million. An FIR has been lodged against the owner of the NDP vehicle. The authorities concerned re-
vealed that the documents of the car were checked by Registration authority and proved that seized car was bearing faked registration documents. The Land Cruiser has been impounded under the Customs Act 1969 and the documents of vehicle have been sent for further examination to investigation and Prosecution (I&P) department, adding that the FBR has issued special instructions to the Customs Department to make appropriate steps to arrest smugglers and curb the transfer of
non-duty paid vehicles. Meanwhile, The Customs Collectorate compensated the exporters with extra amount of Rs1.00 million against assigned rebate target under the head of customs duty during the month of November Financial Year 2017-18. According to details told by Collector Saeed Khan Jadoon MCC was assigned Rs.20.00 million of target under head of CD on rebate refunds while it was paid Rs21.00 million rebates under the same head during the month of No-
vember FY17-18. The collector notiSied that during the same period of correspondence November FY 2016-17 the Collectorate was paid rebate refunds amounting to Rs.9.34 million. The Collector MCC Islamabad had furnished a policy to pay pending Rebate Refunds those were pending since 2013 to 2014. The Collectorae will be complete pending cases up to 2014 till 31st December 2017and pending rebates till 2015 will be cleared till end of Financial Year 2017-18.
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FIA arrests two human smugglers FAISALABAD: The FIA teams Thursday conducted raids and arrested two alleged human smuggler, Khadim Masih of Chak No 197-RB and Badar Muslim of Raja Wala Sarfraz Colony, on charge of getting Rs 4.3 million from the victims. According to FIA officials, the accused received Rs 4 million from a one Zulfiqar Masih, a resident of Christian Town, over the pretext of sending him to Poland. Also, accused Badar Muslim received Rs 3 lakh from one Muhammad Younus of Chak No 199-RB for sending his son to Dubai. Later, the accused neither sent them abroad nor returned their money.
Adjudication-I recovers Rs 7.23m from M/s Aslam Traders
Wednesday December 13, 2017
Karachi
PCA unearths tax evasion of Rs 9.23m by M/s Shamil & Sons
KARACHI
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he Customs Adjudication-I has retrieved Rs 7.23 million from M/s Aslam Traders Karachi. The company was allegedly involved in tax evasion. Sources told Customs Today that Collector Customs Adjudication-I Mohammad Javed issued a showcause notice to the company for causing a loss of Rs 7.23 million by way of mis-declaration of classification. M/s Aslam Traders Karachi imported a consignment of summer pumps, heavy motors, motors wheels and home pumps and got them cleared by misdeclaring the classification under the Pakistan Custom Tariff (PCT) from the Pakistan International Container Terminal (PICT).
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Customs values of grey, bleached fabrics issued KARACHI
CUSTOMS BULLETIN REPORT www.customsbulletin.com
he Directorate General of Customs Valuation has issued Valuation Ruling No. 1224/2017 to determined valuation of grey fabric and bleached fabrics. Customs values of polyester grey fabric were determined via valuation ruling 771/2015 issued on November 18, 2015. Since the existing valuation ruling was about two years old, therefore, there was a need to re-determine the customs values of polyester grey fabric in accordance with prices in international market. The directorate fixed the customs values at $3.8 per kilogram on import from China and at $3.9/kg on import from other origins. Similarly, the customs value for polyester bleached fabric has been fixed at $3.95/kg on import from china and $4.10/kg on import from other origins.
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KARACHI
WAQAR AHMED ANSARI www.customsbulletin.com
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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 9.23 million by M/s Shamil and Sons Karachi, it is learnt here. The sources told Customs Today that M/s Shamil and Sons imported a consignment of electronic items and kitchen accessories, including washing machines, ovans etc from Japan and got it cleared from the PICT Karachi vide GDs on May 16, 2017 by paying customs duty at 10 percent after claiming the beneSit of the SRO 624/2007. However, the subject items are correctly classiSiable under the PCT 4202.2387 attracting customs duty at 16 percent and income tax at 12 percent, thus, by way of mis-declaration of classiSication, the company evaded/short-paid Rs 9.23 million. The goods were cleared by Head Examiner Shah Gul Khan and Appraiser Razzaq Bangash. Sources said that the importer violated the provisions of Section 52 (2) & (8A) of the Customs Act1969, Section 12, 13 read with Section 45 of the Sales Tax Act1990 and Section 182 of Income Tax Ordinance 2001 punishable under clauses (134) and 128 of Section 745(6) of the Customs Act1969, Section 77 of the Sales Tax Act-1990 and Section 87 & 129 of Income Tax Ordinance 2001 and
Section 6-A of the Sales Tax Act1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001. Meanwhile, The Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 9.75 million allegedly by M/s Junaid Ilyas and Company, it is learnt. The official
The sources told that M/s Shamil and Sons imported a consignment of electronic items and kitchen accessories, including washing machines, ovans etc from Japan and got it cleared from the PICT Karachi
SHC seeks remarks on plea filed by truck owner
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KARACHI
M B RANA
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he Sindh High Court (SHC) has directed the customs authorities and counsel for the petitioner to come prepare and Sile their comments on the next date of hearing on a constitutional petition Siled by Long Khan against seizing of his Hino truck bearing registration number AE-1636 seized by the customs ofSicials. A two-member bench, compris-
ing Justice Munib Akhtar and Justice Umer Sial, was hearing the petition. Earlier, counsel for the petitioner stated that petitioner is lawful owner of the vehicle and never involved in any crime, however, ofSicials of the Anti-Smuggling Organization Customs Collecorate Hyderabad intercepted his Hino truck which was loaded plastic scrap. During the search, driver produce all relevant documents, however, the customs ofSicials seized his vehicle without lawful authority and shown any lawful
reason. Being aggrieved, petitioner moved to Customs Appellate Tribunal which allowed his appeal and directed customs ofSicials to release his vehicle, however, high ofSicials of the customs department are not following court’s order. Citing Secretary Finance and Director, Customs Appellate Tribunal, Collector of Customs Appeals, Deputy Collector of Customs Adjudication, Customs Collectorate, Hyderabad as respondents, petitioner pleaded the court may direct them to release his vehicle immediately.
sources told Customs Today that M/s Junaid Ilyas and Company imported a consignment of food essence and different kinds of food colours under the PCT Heading 2405.3408 and got it cleared from the Port Qasim Karachi vide GDs on September 19, 2017 by paying customs duty at 12 percent after claiming a benefit of SRO 566/2007 by the hand of Appraiser Ghulam Mujtaba and Appraiser Kamran Ghori.
Sale of Sukuk bond appreciated he United Business Group (UBG) has lauded the government for the successful auction of bonds worth 2.5 billion dollars without being under IMF programme. The successful move speaks volumes about the increasing confidence of the foreign investors in the Pakistani economy, it said.
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FTO postpones hearing of appeal filed by M/s Madina Kinno Factory Wednesday December 13, 2017
Lahore
LAHORE: The Federal Tax Ombudsman (FTO) has adjourned the hearing of a case filed by M/s Madina Kinno Factory, against the Regional Tax Office (RTO), Sargodha, until the next hearing. According to details, FTO Advisor Munwar Ghafoor heard the case in which counsel for the appellant argued that the RTO had failed to release the sales tax refund of the last two years claimed by the company. He said the RTO collected excessive tax from M/s Madina Kinno Factory for the last two years. He approached the commissioner concerned many times for issuance of refunds but the RTO officials did not pay refunds even after the passage of reasonable time. At the end, the company decided to approach the FTO seeking interference in this case.
FTO postpones hearing of appeal filed by M/s Hunza Sugar Mills LAHORE
SAJID NAWAZ
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he Federal Tax Ombudsman (FTO) has postponed the hearing of a case filed by M/s Hunza Sugar Mills (Private) Limited against the Large Taxpayer Unit (LTU) until the next date of hearing. The same was heard last month and was put off for the next date. According to the details, FTO Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the LTU had failed to satisfy the appellant in refund case. The petitioner claimed that the LTU collected excessive tax from M/s Hunza Sugar Mills during the last three years. The company approached the officer concerned
Court sends two suspects to jail in cloth smuggling case he Special Federal Court of Customs Taxation and Anti Smuggling sent two suspects to jail on 14 days judicial remand. According to details available to Customs Today, the suspects, Rehmat Ali and Nasir Khan, were arrested by the Customs Intelligence team. After arresting the accused, Customs Intelligence started investigations against them and got their physical remand. The Customs Intelligence also recovered a huge quantity of foreign made smuggled cloth and goods from their possession. The Customs Intelligence team told the court that the accused persons were involved in smuggling of cloths from Afghanistan to Lahore and Faisalabad via different routes. They had caused a huge loss to the national kitty in the wake of taxes and duties. They were involved in smuggling for long time. –CB Report
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many times but the LTU officials did not pay the refunds after the passage of a reasonable time. At the end, the appellant decided to approach the Federal Tax Ombudsman (FTO), seeking interference in this case. The counsel appealed the FTO advisor to direct the LTU to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the LTU should make audit of the cases and release the extra amount collected by it from the taxpayer. He also said in the argument that appellant should submit all relevant record to the LTU. After hearing the arguments from both sides, FTO adjourned hearing the case until next date for further hearing and directed the parties to appear on said date to present arguments in the case.
Collector Preventive Faiz assigns guard duty to inspectors, sepoys
LAHORE
M HAYAT
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ustoms Collectorate of Preventive Collector Faiz Ahmad issued a notifica-
Court imposes penalty on suspect in mobile phones smuggling case
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he Special Federal Court of Customs Taxation and Anti Smuggling has imposed a penalty of Rs 200,000 on a Chinese citizen who was arrested by the Customs Intelligence from Mall Road when they foiled an attempt of smuggling of foreign made mobile phones. According to details available with Customs Today, on the basis of proofs and witnesses on Tuesday the Special Federal Court of Customs Taxation and Anti-Smuggling declared a Chinese citizen as
an offender and imposed a cash penalty of Rs 200,000 on him. The court ordered Soy Shian to submit the cash till rising of the court where the accused submitted the Sine. Earlier, the customs team had produced him before the court and asked for his physical remand for investigation. The Special Federal Court of Customs Taxation and Anti Smuggling had approved a three-day physical remand of the accused. After completion of his remand, he was sent to jail for further trial. –CB Report
tion in which he placed various inspectors and sepoys for guard duty and directed them to report to chief security officer Customs House Headquarters for their duty. Those who are directed to report to the chief security officer include Inspector Mohammad Ashraf, Inspector Mohammad Asif,
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Inspector Mohammad Farooq Anjum, Inspector Ms. Zeba Naz, havaldar Mohammad Azam, havaldar Mohammad Aleem, havaldar Nazir Ahmed Machi, sepoy Asghar Ali. According to the notification, the employees will perform their guard duty from 8am to 3pm. In shift B, Inspector Mohammad Faqeer Mohammad, Inspector Rai Sukhawat Ali, sepoy Mohammad Faheem sepoy Sher Zaman, sepoy Sarmad Amjad, sepoy Amjad Ali Bhatti wil perform their duties. Inspector Abid Ismail Chishti, Inspector Masood Arif Cheema, sepoy Imtiaz Ahmad, Muhammad Usman, Shahid Mehmod, Abdul Rehman Abid Malik Sadaqat Ali Khan, Naveed Ahsan, Naveed Qateel, Fiaz Ullah, Javed Iqbal, Mohammad Boota, Haji Mohammad Aleem will perform their duties assigned by chief security officer of Customs House Headquarters with immediate effect.
Tribunal adjourns hearing of 9 cases The Customs Appellate Tribunal (single & double) bench heard nine cases and adjourned all for different dates without those cases whose verdicts were reserved. The division bench-II, comprising Omer Arshad Hakeem, Member Judicial and Imran Tariq, Member Technical, heard all nine cases including Directorate Post Clearance Audit (PCA) Lahore versus Fasna Impex, Raja Qaiser versus Customs Sialkot, Imran Nawaz versus Customs Lahore, Taj Impex versus Customs Sambrial and Customs Lahore versus NFK Enterprises. Furthermore, same bench heard
cases of Customs Lahore versus I A Corporation, Directorate Post Clearance Audit (PCA) Lahore versus Chaudhary Folwers, Customs Sambrial versus Nawab Zada Haider and Amjed Khan versus Customs Faisalabad. On Monday, same bench not hear any case and all eight Sixed cases put off into next dates. The case of case of Arshed Sulah against Customs Lahore and Hussain Trading versus Customs Faisalabad put off into eight December, the three cases of customs Lahore against Muhammad Azhar, Muzakir Shah and Khuram Azhar put into nine January 2018. –CB Report
‘LDA asked to handover details of illegal housing schemes’
N LAHORE
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ational Accountability Bureau (NAB) has asked Lahore Development Authority to provide complete details of illegal private housing societies, according to a report by a private media outlet. So far details of over 300 illegal
housing societies/schemes have been provided to NAB in recent past while the list of more than 350 illegal housing societies is being prepared. According to the report, LDA’s Metropolitan Planning Wing is responsible to check, scrutinise and allow a private housing society/scheme in the LDA’s controlled area but allegedly the wing joined hands with land maSia and allowed the establishment
of hundreds of unapproved/illegal housing societies. Metropolitan Planning Wing’s main role is future planning of Lahore as well as processing of private housing schemes. Under the procession of private housing schemes, the wing is responsible for scrutiny of building plans of private housing schemes, scrutiny of NOCs as per proposed schemes and preparation and implementation of the
master plan. As per LDA rules, a new scheme should submit an application to the wing, which will see that all the basic parameters are fulSilled. Then the case will be sent to the scrutiny committee, which will allow execution of the scheme after fulSilment of planning standards. The wing also mortgage plots of the society and in case of any illegality LDA can sell the mortgaged plots.
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he International Monetary Fund (IMF) has showed satisfaction on the efforts of the Federal Board of Revenue (FBR) to collect the tax revenue as well as stressed the need for broadening the tax base. According to the details, IMF’s Post-Program Monitoring Mission met with Special Assistant to Prime Minister Haroon Akhter regarding tax policy and administrative issues while Chairman FBR Tariq Mahmood Pasha and Members of the FBR including Member Operation Khawaja Tanvir Ahmed, Member Taxpayers Audit Rehmat Ullah Khan Wazir, Member Customs Muhammad Zahid Khokhar, Member Policy Inland Revenue Dr. Muhammad Iqbal were also present in the meeting held at the FBR House on Monday.
Wednesday, December 13, 2017
Akhter mentioned that signiSicant growth has been achieved in revenue generation in the current Siscal year. The chairman FBR briefed the mission about the implementation process of tax reforms and progress regarding the tax revenue collection during the last Sive month and hoped that FBR will get the revenue targets of current Sinancial year (2017-18). According to the FBR sources IMF’s PostProgram Monitoring Mission appreciated the efforts of Federal Board of Revenue and noted impressive 20 percent growth in revenue collection. Mission has stressed upon the senior ofSicials of revenue authority to do more efforts to increase the numbers
of Silers. Mission were of the view that Federal Board of Revenue need to redouble their efforts to increase the tax revenue to the one 1 percent of the GDP. FBR leadership assured the mission that despite all the challenges we will continue our efforts to broaden the tax base and increase the revenue collection.
the riefed b R B F on irman entati a m h e c l e p Th ress the im d prog about n n a o s i s m s n r mi x refo llectio s of ta nue co s e e c v o e r r p e tax s and ing th month e v fi t regard s the the la hieve c a l l i during w ial at FBR financ h t t n d e r e r hop s of cu target e 8) u n e 017-1 rev year (2
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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
Pakistan as trade hub
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t a time Pakistan is trying to improve political and business relations with Afghanistan and India, the Asian Development Bank has suggested that Pakistan has the potentials to become a trade hub in the region in the wake of rapid development in several European and Asian countries. On east side of Pakistan, there is a permanent enemy which has been rejecting the hand of friendship and oers of healthy business and trade relations. The neighbour on the west is so-called brotherly Islamic country, but has been toeing the line of India to keep its hostility alive against Pakistan without any logic or reasons. Pakistan has always supported Afghan people in thick and thin, but it has stabbed in the back whenever it has a chance to do so. The South Asian Association for Regional Cooperation,which was setup decades ago, to enhance cooperation in the fields of political, business and trade among the partner countries, has lost its utility at the hands of India. The extremists’ government in India does not want to dissolve this forum, but keep it in cold storage to block the entry of China in it. There are inherent flaws in the Indian diplomacy which all the way and all the times revolve around Pakistan. It is very pleasant to hear the comment from Xiaohong Yang, the ADB Country Director, that with the rapid economic expansion of Russia, India, China and Japan, and Europe economies, there is a unique opportunity for Pakistan to emerge as the centre of trade and commerce. But Indian leadership will hit its own feet to harm the Pakistani interests. The bank oďŹƒcial has launched the Central Asian Regional Economic Cooperation Strategy 2030, a new long-term strategic framework for the regional cooperation, which will open a platform of regional cooperation and will connect people, policies and projects for shared and sustainable development. However, there is no one there to convince New Delhi that this is an era of economic development. The wars are now fought on the economic fronts and not on the war fronts. Trade between Pakistan and China is growing but the level of trade is low with Iran, Afghanistan and India due to various geo-political reasons. However, it is in the interest of India to establish close friendly relations with Pakistan and get access to the central Asian states and Europe.
State of Future Index A
LAHORE
DR AFTAB AFZAL
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non-governmental organization has conducted a study, covering 30 variables to ascertain the future prospects of the country in next 10 years. The study discusses 30 years trends of improvement and decline, forecasting each variable on the basis of 20 years of past data to again assessed the best possible and the worst possible values in 10 years. The study, Pakistan State of Future Index, claims that Pakistan leads the region in future research in public space and that is area where the nation is winning. The report also sees signiSicant growth potentials of in-
ternet and technology which could lead to builds conSidence in the stake holders and decisionmakers to draft policy frameworks for well-being of the people. The State of Future Index, developed by the Millennium Project, is an effort to measure the changing state of the future. The index highlights the national and global conditions and incorporated it in the study conducted by international organizations in 2000. In that study, at least 15 global challenges were identiSied, involving various countries of Asia, Africa and Europe. According to the experts, who launched the project in Pakistan, the study is a useful tool to objectively evaluate the direction and trends of
Pakistan as it supports the decision-making process of key stakeholders, to reach conclusions and achieve optimal results. Newspaper reports suggest that more than 100 citizens participated in the real-time Delphi study and more than 20 academics extended their judgment on the selected variables, including 18 universities across the country. According to a representative of a world organization, the Pakistani politics oscillated between civil and military rules and that the study covers different questions about the shape of the country when it will be hundred years old. The study calls for coordination in various segments of the formal and informal sectors of the
country including participation of the government and non-government organization in studying the future prospects of the country. The launching of the study, which covers possible trends of social and economic sectors of the country during next 10 years, is a good omen as the political uncertainty is leaving little room for the government policymakers to initiate such venture. It is hoped the stakeholders whether in the government or the private sector will go through the study to devise their future course of actions. There are several think tanks working in the private sector and they should also make public their studies about social and economic conditions of the country.
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IHC hears various cases filed against FBR field offices ISLAMABAD: Islamabad High Court benches held hearing on various customs cases during fourth week of November involving field offices of Federal Board of Revenue (FBR). In this regard, IHC bench comprising of Justice Shaukat Aziz and Justice Mohsin Akhtar dated in office hearing on M/S Pakhtoon’s customs cases till October 10 and directed parties to provide record pertaining to the case prior to next date of hearing. The appellant had filed the case against Model Collectorate of Customs, Islamabad. The bench also directed FBR field office, MCC and the appellant to submit record on the case in order to assist the court. Justice Aziz’s single bench also heard another customs case filed against MCC by Ehsan ur Rehman. Justice Athar Minallah and Justice Miangul Hassan relisted a customs reference for hearing.
Customs earns Rs417.33 million KARACHI
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he Model Customs Collectorate of Islamabad earned Rs.417.33 million under head of Customs Duty during the month of November Financial Year 2017-18. Sources told Customs Today that all customs stations comprises Islamabad Dry port (IDP), Air Freight Unit (AFU), Customs Bond Section, Unaccompanied Baggage (UAB), Accompanies Baggage (AB), International Mail Office (IMO), and Rebate Refund generated the above mentioned amount. The sources told that that during the above said period the customs stations working under jurisdiction of MCC Islamabad showed good performance, he added that during said period the IDP earned Rs188.38 million under head of CD. It was informed that during the month of November of Fiscal Year 2017-18 the AFU Islamabad earned Rs.243.85 million under head of CD while the UAB earned revenue in amount of Rs.0.62 million under head of CD dur-
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Wednesday December 13, 2017
National
SHC bars Commissioner-IR from cancelling exemption certificate KARACHI
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M B RANA
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he Sindh High Court has restrained the Commissioner Inland Revenue from cancelling exemption certiSicate. A SHC division bench stopped the Commissioner from cancelling exemption certiSicate earlier issued by him (under section 159(1) and section 154(4A) read with clause (94) of Part IV of the Second Schedule of Income Tax Ordinance, 2001) on the basis that taxpayer is not paying advance tax as per calculation made by the department of turnover of taxpayer for providing human resource services. In this regard, the court has issued an interim order in CP No D – 8165 of 2017. Details of the case revealed that the petitioner M/s Ask Development Pvt Limited is providing human resource services to other leading companies and those companies over and above salaries of staff provided by the petitioner further pay fee at the rate of 6.5% to the petitioner. As per section 153(1) (b) the
clients of the petitioner is required to deduct income tax from gross amount paid to the petitioner. However section 153(4A) read with clause (94) provides a mechanism to service provider against deduction of excessive income tax. Commissioner can issue an exemption certificate for non-deduction of income tax under section 153(1)(b) where the service providers deposit advance income
tax equal to two percent of the total turnover of the corresponding period of the immediately preceding tax year. For the purpose of turnover u/s 153 of the Ordinance, 2001 definition is provided in subsection 7 (V) of section 153 of the Ordinance, 2001. According to definition “turnover” the gross fees for the rendering of services for giving benefits including commissions. To claim the benefit under
sub section (4A) of section 153 read with clause (94) the Petitioner deposited advance tax equal to two percent of the total turnover of the corresponding period of the immediately preceding tax year. After careful scrutiny by the Commissioner an exemption certificate was issued to the Petitioner allowing its clients to ‘not’ deduct withholding income tax on payments made to the Petitioner.
LHC says Commissioners-IR have powers of independent audit ing above said period. The sources notify that the AB sections of MCC Islamabad earned Rs.2.58 million of revenue under head of CD whereas the IMO earned Rs.0.48 million in head of CD as for as the Rebate Refund section paid off 18.58 million to Exporters during initial 27 days of current month of September 2017-18. The sources told that during said period the MCC Islamabad earned Rs.435.91 million of total gross collection in head of CD while it was earned Rs.417.33 million of total net collection under head of CD during above said period. Sources told that the Model Customs Collectorate Islamabad was earned Rs.381.77 million gross revenue collection during 27 days of correspondence FY16-17.
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he Lahore High Court (LHC) has said that the Commissioners Inland Revenue have independent powers to select cases for audit under section 177 of the Income Tax Ordinance, 2001 in addition to selection by Federal Board of Revenue (FBR) through computer ballot under section 214C. Commissioners Inland Revenue’s powers to select cases for audit under section 177 of the Income Tax Ordinance, 2001 have been upheld by a Division Bench of Lahore High Court (LHC). The LHC judgment has decided two sets of appeals Siled respectively against two judgments delivered by different learned Single Benches of this Court. Common question of Commissioner’s powers
to select for audit, after the addition of explanation to section 177 and 214C of the Ordinance, 2001 by Finance Act, 2013. It is further learnt that Division Bench of the LHC has dismissed appeals Siled by the taxpayers and accepted the stance of Federal Board of Revenue by conSirming the judgment in Kohinoor Sugar Mills’ Case, being in consonance with legislative declaration and clariSication under the Explanations inserted in the Ordinance of 2001, through Finance Act 2013, is upheld. The background facts that earlier a single bench of LHC on writ petition Siled by Chenone Store etc against notices issued by the Commissioner selecting their cases for audit under section 177 had held that Commissioner has no independent power to select cases for audit. In judgment notices of selec-
tion for audit, issued, after amendments through Finance Act 2010, by Commissioner under Section 177 of the Income Tax Ordinance 2001 (“Ordinance of 2001”); Section 25 of the Sales Tax Act 1990 (“Act of 1990”) and Section 46 of the Federal Excise Act 2005 (“Act of 2005”), were declared illegal and without lawful authority, after striking down Sirst proviso to the Section 177 (1). Whereas another single bench on the petition of Kohinoor Sugar Mill etc had given a contradictory ruling that Commissioner has independent power to select taxpayer’s cases for audit by recording reasons for doing so. This judgement had also dealt with validity of notice of selection for audit, issued by Commissioner under Section 177, after amendments through Finance Act 2010. The Explanations inserted, during proceedings, through Fi-
nance Act 2013, were treated to have retrospective effect, therefore, the selection by Commissioner was held to be in accordance with law. Both the judgments of single bench were at variance. Hence both department as well as taxpayers had Siled ICA appeal before the Division Bench of LHC who has released its judgement by accepting the departmental version and over ruling the Chenone Store judgement. The operative of the judgement revealed that nevertheless, we are in agreement with the observation in Chenone Stores’ judgment that ‘Even though the Commissioner may be the best person in the system to identify a tax default, he cannot enjoy unguided discretion’. It has already been declared in Media Network’s Case that Commissioner shall give criteria/reason-ns in the notice for selection.
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Customs Superintendent Israr retires Wednesday December 13, 2017
National Ziaullah Khan assumes charge as Secretary (Lit-FST)
ISLAMABAD: Israr Hussain, a Pakistan Customs Service officer of BS-16, has retired from the government service on attaining the age of superannuation. The officer, presently posted as Superintendent at Model Customs Collectorate (Appraisement), Lahore, stood retired from the government service on November 19.
Inspector Rai Waqar granted performance allowance
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iaullah Khan, a BS-19 officer of Inland Revenue Service, has assumed charge as Secretary Litigation in FST (Lit-FST) at Federal Board of Revenue (HQ), Islamabad. The officer, in pursuance of Board’s Notification No. 3106-IR-I/2017, dated 22.11.2017, relinquished the charge of the post of Additional Commissioner-IR, Regional Tax Office II, Lahore with effect from November 28 and took the charge of the post of Secretary (Lit-FST) at FBR (HQ), Islamabad on December 4. Meanwhile, Amir Ahmad Samoo, a Pakistan Customs Service officer of BS-16, has been provisionally reinstated into service with immediate effect until further orders. The officer, posted as Principal Appraiser at Model Customs Collectorate of Appraisement-West, Karachi was placed under suspension vide Board’s Notification No. 0382-CIII/2017 dated 08.02.2017.
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Two Commissioners transferred ederal Board of Revenue (FBR) has transferred and posted two Inland Revenue officers of BS 19 with immediate effect till further orders. Muhammad Naveed Akhtar (IRS/BS19) has been transferred from the post of Commissioner-IR, (OPS) (Zone-II) Regional Tax Office, Gujranwala and posted as Director, (OPS) Directorate of Intelligence & Investigation (Inland Revenue), Lahore. He is assigned the additional charge of the post of Director (OPS), Directorate of Intelligence & Investigation-IR, Faisalabad till the posting of a regular incumbent. Muhammad Anwar (IRS/BS-20) has been transferred from the post of Commissioner-IR, (OPS) (Zone-I) Regional Tax Office. –CB Report
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ai Waqar Ahmed, a Pakistan Customs Service officer of BS-16, selected through the process of internal job posting (IJP), has been granted performance allowance. The officer, presently posted as Inspector at Model Customs Collectorate, (Appraisement), Lahore has been granted performance allowance (equivalent to 100 per cent of basic pay) with effect from November 29, 2017. Grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. 6(96)S(BIC)/2013-14 dated 06.03.2015 to be read with Para-10 of Finance Division’s
O.M.No.1(3)/Imp/2015-360 dated 07.07.2015. The allowance will be
discontinued in case prescribed terms and conditions are not ful-
filled within one month from the date of issuance of this notification.
ASO Islamabad impounds 114 vehicles, other items valued at Rs300 million T
ISLAMABAD
TARIQ DERYA
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he Anti-Smuggling Organization has taken into possession 114 vehicles and other smuggling goods worth above Rs300million during Sive months of existing Financial Year 2017-18. This was stated by Majid Hussain Gadd, Assistan Collector, Preventive Division Islamabad. During July to November, the ASO Islamabad impounded 95 offending vehicles (vehicles used for carrying smuggling goods) valued at Rs102.77million whereas the Car Cell of the ASO did 19 NonDuty-Paid (NDP) vehicles priced at Rs88.49million. Assistant Collector told CT that, during above said period, the ASO seized 38,880 yards of fabric worth Rs21.57million while it did 99,366 kilogram of food grains valued at Rs12.79million
and the ASO did 7,220 kilogram of tea priced at Rs2.2million. The ASO further conSiscated 691 smuggling tyres and tubes valued at Rs2.3mil-
lion and 16,964 pieces of autoparts worth Rs7.2million. The ASO impounded 1,808 alloy rims priced at Rs0.51million and it also did
1,315 liters of Mobil oil worth Rs0.233 million. Assistant Collector ASO further told CT that, during Sirst Sive months of FY17-18.
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FST issues directives on various service matters filed by FBR employees ISLAMABAD: The Federal Service Tribunal (FST) issued directives for submission of record in couple of service matters and dated in office the hearing of different cases. A division bench of the FST comprising Member, Rafique Shah and Dr Nazir and Member Rafique Shah and Dr Nazir heard the cases filed by Attique Ahmed Abbasi, Zeeshan Zafar, Mian Muhammad Shahzad, Mian Asif Mehmood, Ch. Muhammad Sajid, Ahmad Din, Rizwan Jillani, Muhammad Younas, Muhammad Hussain, and Muhammad Rafique. The bench adjourned the hearing of these cases for coming days. The appellants had submitted complaints about their due promotion which was not yet
ZTBL Disburse Rs 80.337b agri-credit in 10 months ISLAMABAD
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arai Taraqiati Bank limited (ZTBL) has so far disbursed an amount of Rs80.337 billion among the farmers during the period from January to October 2017 in order to fulfill the credit requirements of the farming community across the country. The Bank had disbursed an amount of Rs92.847 billion during last year, where as it had disbursed Rs95.419 billion during the year 2015, as the loan disbursements were recorded at Rs81.933 million in the year 2014, said an official of the Bank. He said that Rs7 billion among 53,000 fresh agriculture borrowers, as the loan recovery ratio of the bank had witnessed significant increase and default rate reduced during last finan-
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cial year, which had created cushion for more loans. He further said that the bank had disbursed an amount of Rs92 billion among farmers during 2016 in order to fulfill the agriculture credit requirements, adding that Rs80 billion was provided to growers during current financial year and it was expected to reach Rs100 billion by the end of current month. He said that the number of bank customers has reached to one million and portfolio loan was increased to Rs200,000 in order to fulfill the requirements of agriculture credit to purchase the inputs to enhance the crop output for the prosperity of local farming community of the country. So far, he said that the bank had haired 308 people and opened 80 new bank branches in different areas of the country to facilitate the agriculture community and promoting the livestock and agriculture sector of the country.
National
Deputy Collector Saima orders importer to deposit short amount of duty & taxes
Customs I&I recovers import record, functional billing of M/s Digicom KARACHI
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eams of Directorate of Customs Intelligence and Investigation (I&I) have raided main office of M/s Digicom (Private) Limited situated at Forum Shopping Centre in Clifton area and recovered import record of the company as well as functional billing and payments, source said. Source from I&I told Customs Today that after the submission of interim charge sheet against the company in the customs court, now the investigations have been extended to other aspects of the case. “After lodging an FIR against the company for tax evasion and smuggling of Q-Mobiles worth over Rs 1.5 billion under the garb of LED lights, the Customs I&I teams raided five places, including the houses of chief executive officer (CEO) Zeeshan Akhtar, Director Zeeshan Yousuf and a bungalow in DHA, the company’s main office in Dolman Mall and another important office at Forum Centre,” officials informed. In the last raid, a team of the Customs I&I took over 500 files into its custody from the main office of the company. “Until, we submit the interim charge sheet against the company.
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eputy Collector Customs Adjudication Saima Ayyaz issued Order–in-Original (ONO) against importer M/s General Trading Company for tax evasion of Rs.34208/ only after trial. According to details, M/s General Trading Company located in the Khawaja Colony, House No.1523/80 Mohallah Rasool Pur Railway Road Multan. Said importer imported a consignment of miscellaneous goods along with Shampoo and others from Multan Dry Port .Importer imported said Shampoo and miscellaneous goods through M/s Samin Enterprises, against GD No. MCSIHC-302. During the course of audit by the Directorate General of Audit Customs & Petroleum Lahore it has been observed that the goods were cleared under PCT Heading 3505.9020 paying customs duty @ 12.5 % under the beneSit of SRO 659(I)/2007. But correct PCT Heading 3305.1000 of import consignment did not exist in table of the SRO.659 (I)/2007 and the actual customs duty was chargeable @ 20
Wednesday December 13, 2017
% on import of said goods. Alleged importer M/S General Trading Company has paid less tax than their actual taxes at the time of clearance of their import consignment which also resulted into short realization of government revenue .Therefore
M/S General Trading Company paid short duty and taxes amounting to Rs.34208 at time of clearance. Deputy Collector Saima Ayyaz directed importer to pay duty tax of Rs.34208 to Multan Customs in their issued Order-in-Original (ONO).
Around 61,753mt LPG imported in nine months
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he country has imported around 61,753 metric ton (mt) LiqueSied Petroleum Gas (LPG) during Sirst nine months of the year 2017, ofSicial sources said. “The LPG import stood at around 513,788 mt in 2016, while 2,45,578 mt in 2015 and 62,117 mt in 2014,”. During the last four years, the number of LPG marketing had reached 144 and the government had decided to set up LPG-air mix plants in far-Slung areas of the country where facility of natural gas was not available.
Currently, the two state companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) are working to set up 59 LPG-air mix plants at designated sites in their respected operational areas. “The project is aimed at providing gas facility to the population in the areas where facility of natural gas is not available and to discourage deforestation. At the plants, LPG will be mixed with air to produce synthetic gas for onward supply to the consumers through distribution networks like natural gas,” the sources said. The SNGPL will install LiqueSied Petroleum Gas (LPG)-air
mix plants in Beor, Ban, KurbaglaDewal, Company Bagh, Tret, Phagwari, Rawat, Ghora Gali, Ariari, Karor, Kotli Sattian, Santhan Wali, Kahuti, Lehtrar and Pangar in Punjab and Darosh, Balakot and Ayun localities in Khyber Pakhtunkhwa. In Azad Jammu and Kashmir, the facility would be provided in Muzaffarabad, Rawalakot, Kotli, Palandri, Bagh, Dhirkot and Bhimber, whereas a plant would be installed in Gilgit, the sources said. The SSGCL, they said, would set up LPG plants at Umerkot and Mithi areas of Thar in Sindh, and Zhob, Qilla Saifullah, Loralai, Kharan, Musakhail, Qilla Abdullah, Keecha at Turbat, Khuzadar,
Uthal, Winder, Muslim Bagh, Killi Khanzai, Chaman, Sherani, Sanjawi, Chaghi, Panjgor, Hamal, Washuk, Wadh in Khuzdar, Barkhan, Mitri (Bolan Katchi), Injeera (Khuzdar), Gandva (Jhal Magsi, Kohlu, Awaran and Bela in Balochistan. Answering a question, the sources said the LPG air mix project on SNGPL system was at different stages of implementation like planning, survey, import of plants and acquisition of land, while the SSGCL had started the process of site selection and land acquisition under the project. The company had worked out Rs 14 billion cost for the mentioned plants and the tenders would be Sloated once the feasibility study was completed.
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World Customs
Iran, Russia ties: economy versus diplomacy
TEHRAN: Despite the fact that Iran and Russia enjoy very close political ties at a strategic alliance level, the alliance is not reflected in trade ties. The sides have failed so far to boost the volume of the trade, as obstacles still exist. After the tension between Moscow and West escalated in recent years, there was a big opportunity for Iranians to pave their way to Russia’s food market, but the expectations did not materialize due to various obstacles.
Wednesday December 13, 2017
China’s Qingdao seizes over 1,700 tonnes of zinc waste
Customs destroy N7.2m worth of poultry in Benin BANGKOK
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ustoms in China’s eastern port city of Qingdao seized 1,762 tons of smuggled zinc waste last week in the country’s campaign against the import of “foreign garbage.” China told the World Trade Organization (WTO) in July it would stop accepting shipments of rubbish such as waste plastic and paper as part of a campaign against “foreign garbage”. The zinc slag was found in 88 containers during a spot check in Qingdao on Dec. and assessed to be a prohibited solid waste, according to a statement posted on the General Administration of Customs website. The statement did not say where the waste had come from. Smelting this material would have produced “a large number of harmful polluting gases and wastewater,” and been
China, Canada may start FTA talks hina and Canada are likely to start talks on free trade during Canadian Prime Minister Justin Trudeau’s visit to China, although there is still some distance to go before any deals can be agreed on, experts told the Global Times. Trudeau arrived on Sunday for his second trip to China, which runs until Thursday. Overseas media reports hailed the visit as a good opportunity for the two countries to initiate free trade talks. Canada-based news site cbcnews noted on Saturday that now could be a “fruitful” time to start formal free trade negotiations between the two countries. The Wall Street Journal also reported on Friday that the two countries are “widely expected” to start free trade talks during Trudeau’s visit. “I believe Trudeau’s visit will generate a positive outcome. –CB Report
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detrimental to the environment and human health, the statement said. In the Sirst 10 months of this year, Qingdao customs organised three campaigns to tackle waste smuggling, which led to the opening of 26 criminal cases, seven administrative Silings and the arrest of 43 suspects, the statement said. Meanwhile, There are indications that China’s appetite for imported
coal may be starting to ease in line with Beijing’s efforts to limit the use of the fuel over winter in a bid to lower air pollution. China’s seaborne imports were 18.26 million tonnes in November, down from 20 million in October, according to vessel-tracking and port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts.
Police foil smuggling of 600 thousand ecstasy pills from Netherlands
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eam from Directorate of Drugs at National Police (Polri) Headquarters managed to thwart the drug-trafficking type of ecstasy that is circulated by the Netherlands-Jakarta international ring. In the foiling effort, officers arrested six suspects and secured 243.20 kilograms of ecstasy drugs packaged in 120 packs, totaling 600 thousand pills. “Six suspects
and hundreds of thousands of ecstasy pills are secured. Ecstasy of Dutch network has the number one quality,” said Director of Drugs of Criminal Investigation Agency (Bareskrim) at National Police Headquarters, Brigadier General of Police Eko Daniyanto, in Jakarta. He said, of six suspects secured two suspects are the controllers from Surakarta and Mount Sindur prisons. –CB Report
sman, who was represented by superintendent of customs patrick onyemem, said the seizure and destruction of the products was in compliance with the Federal Government’s policy on imported frozen poultry products. He said that the poultry products totaling 480 cartons were being smuggled and conveyed into Benin in two vehicles a Toyota Camry with Registration Number AAA692ES and Chassis Number JT153SV1000165458. Meanwhile, Thailand will have to increase its Sish imports to cover for a 40 percent drop in local Sish landings, according to the vice chair of the committee on Sisheries at the Thai Chamber of Commerce. Leading the demand for more product, local surimi factories are looking to
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increased imports of cod to make their orders, Anucha Techanitisanad said. “We need materials, our strength is in processing plants,” Techanitisanad said.” This is a big opportunity for exporters…it’s a two-way trade now.” Data from Thailand’s government shows in the Sirst seven months of 2017, the country’s surimi exports fell 19.7 percent in volume and 21.7 percent in value terms over the same period in 2016. Exports in 2016 fell 25.7 percent in volume and 22.49 percent in value terms. Thailand notched up USD 2.9 billion (EUR 2.4 billion) in imports in 2016, up 17 percent yearon-year with China, Taiwan, and Vietnam the top suppliers. The U.S. has a Sive percent market share, behind other players like Australia and New Zealand – both of which have free trade agreements with Thailand. With wild-caught Sish harder to acquire, sustainability of supply is becoming a bigger factor in the buying choices of Thai importers, Techanitisanad said.
Tax hikes won’t solve SA’s fiscal woes
outh Africa suffers from a trifecta of social challenges, namely inequality, poverty and high levels of unemployment. This, when coupled with the state of economic stagSlation, rampant government expenditure and bureaucratic paralysis, is creating unprecedented Siscal pressure. Tax revenue, as described in the medium-term budget policy statement, is projected to fall short of the 2017 Budget estimate by R50.8bn, the largest under-collection since the 2009 recession. The shortfall can be reduced either through Siscal consolidation or by increasing taxes
and cutting costs. Standard & Poor’s Global Ratings lowered South Africa’s rand debt to junk-status and cut the foreign-currency rating to two levels below investment grade Meanwhile, American car-maker Ford said it would invest R3 billion ($211 million) in its South African assembly plant to meet rising domestic and international demand for its Ford Ranger pickup truck, the company said on Friday. “This signiSicant investment reafSirms Ford’s ongoing commitment to South Africa as a local manufacturer, exporter and key employer in the automotive sector. –CB Report
Iran’s oil export to Japan falls by 21% M/M
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ran’s oil exports to Japan (including gas condensates) in October 2017 decreased by 18 percent year-on-year and reached 5.13 million barrels. Compared to the preceding month, the Sigure indicates a fall by
20.6 percent, Japan’s ministry of economy, trade and industry said. The Sigure includes 487,510.7 barrels of condensates exported from Iran’s South Pars gas Sield. Iran was Japan’s Sifth oil supplier after Saudi Arabia, the UAE, Qatar and Kuwait, with a share of 5.7 percent in October 2017, while the country supplied 6.6 percent of the Asian country’s oil demand in Octo-
ber 2016 (6.26 million barrels). Saudi Arabia exported 36.039 million barrels of oil to Japan in October (39.7 percent of the country’s total crude imports.) Iran’s oil exports to Japan reached 83.94 million barrels in the Siscal year of 2016, which is a 38-percent increase compared to the preceding year. Iran supplied 7 percent of Japan’s oil demand in 2016. Iran’s oil exports increased by
1 million barrels per day (mb/d) last year to 2.42 mb/d and the Sigure would increase to 2.5 mb/d in 2017 and 2.59 mb/d in 2018, IMF previously said in a report. Iran’s oil and condensate exports amounted to 2.6 mb/d in September 2017, the country’s oil ministry said recently. The country exported 2.25 mb/d of oil to Asian and European markets in the mentioned period.
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Shipping activity at Port Qasim KARACHI: M.T Ever Rich-6 carrying 4,328 tonnes LPG took berth at Engro Vopak Terminal on Sunday. Meanwhile three more ships, MSC Rachale, MSC Albany and Al-Jassasiya with containers and LNG also arrived at outer anchorage of Port Qasim morning. Berth occupancy was maintained at the port at 47% on Sunday where a total of eight ships namely, Vessel Navio Verano, Marvel, Trade Will, Medi Chiba, Kasman, Ever Rich, White Purl and Chemroad Hope were occupied at PQA berths to load/offload Containers, Rice, Sun Flower Seeds, Soya Bean Seeds, Coal, LPG and Palm oil respectively.
Chabahar port phase-I opens, to boost India, Iran trade ranian President Hassan Rouhani inaugurated the first phase of the Chabahar port, called the Shahid Beheshti port, in the Sistan-Balochistan province on December 3, paving the way for a new strategic transit route between India, Iran and Afghanistan, bypassing Pakistan. India’s minister of state for shipping Pon Radhakrishnan was present at the event. Easily accessible from India’s western coast, the port is expected to accelerate trade between India, Afghanistan and Iran as Pakistan does not allow transit access to New Delhi for trade with the other two countries. India will equip and operate two berths in the phase-I of the Chabahar Port with a capital investment of $85.21 million and annual rev-
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Ports & Shipping
Wednesday December 13, 2017
have Ministry plans to make Sabang PNSC new chairman Port Transhipment Port R SABANG
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abang Container Port otherwise known as CT3 was built to become a transhipment port. That is, the delivery of goods to foreign countries can be done directly through this port. This was said by Minister of Transportation Budi Karya Sumadi while reviewing CT3 terminal in preparation for the peak of Sail Sabang 2017. “If it can be a transshipment port it will be attractive, technically good and strategic location, Port CT3 is a natural port with a depth of 20 meters so it does not require development and maintenance like other ports in Indonesia,” said Budi Karya in a written statement.He explained if becoming a transhipment port, then one of the alternatives of the Slow of goods from several regions in Sumatra especially can be through the port of Sabang CT3, and then will be brought abroad with larger vessels.
He added that currently there are ship operators who are interested in making the Port of CT3 as a port of transhipment. “So I came here to see directly this port, there are already ship operators who are interested with this port of sabang,” he said. Budi Karya Sumadi was present in the Port of Container in order to check the readiness of organization of the peak of Sail Sabang 2017 which opened on this day. Source: Netral English JSW’s Mormugao port arm gets notice for handling excess coal The Goa State
Pollution Control Board has issued a showcause notice to JSW’s South West Port Limited (SWPL)for allegedly providing false data and handling coal in excess of the permissible limit last year at the Mormugao Port Trust(MPT). The notice, which was served on November 30 by the board’s Member-Secretary Lavinson Martins, mentioned that the company handled 10. 112 million metric tones (MMT) of coal at MPT as against the Sirm’s permissible capacity of 4.125 MMT between April 2016 to March 2017.
izwan Ahmed, BS-21 officer of the Pakistan Administrative Service (PAS) has been appointed as Chairman Pakistan National Shipping Corporation (PNSC). The new chairman assumed charge of his office on Monday, said PNSC release. Rizwan Ahmed holds Masters degree in Public Administration from Harvard University, USA. He joined the government service in 1988. He worked on various key positions in the federal and provincial governments including Additional Secretary Cabinet Division, Additional Secretary Establishment Division, Chairman Trading Corporation of Pakistan (TCP), Managing Director Pakistan Security Printing Corporation (PSPC), Secretary Health, Government of Sindh, Managing Director Sindh Public Procurement Regulatory Authority, Government of Sindh and Deputy Commissioner, Hyderabad. The new Chairman PNSC had introductory meetings with senior officials and other staff members of the corporation. –CB Report
Port of Ravenna trade recovers during Q3 enue expenditure of $22.95 million on a 10-year lease, according to Indian media reports. Indian external affairs minister Sushma Swaraj met her Iranian counterpart Javed Zarif in Tehran a day before the inauguration and discussed the implementation of the Chabahar port project along with other issues. Swaraj stopped at Tehran while returning from Sochi in Russia after attending the annual summit of the Shanghai Cooperation Organisation. India sent its first consignment of wheat to Afghanistan by sea through the Chabahar port over a month ago, marking opening of the new route. –CB Report
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he port of Ravenna’s main business is bulk cargo. Of its eighteen terminals, dry or liquid bulk cargo handling represents the predominant activity for seventeen of these. But the port also houses a container and car terminal, which is run by the Contship group, and has been looking to expand its ro-ro business, a very signiSicant sector for the Adriatic. 2017 had begun with an overall decrease in trade (-2.5% in the Sirst half, compared to the same period of 2016). By the end of the third quarter this downward trend had recovered to one of just 0.3%, with 19,276,710 tonnes moved over the nine months, in line with what its port president, Mr. Rossi, had predicted towards the middle of the year.
“The causes for the slowdown experienced in the Sirst six months have been addressed, such as the blockage in the outer port which had restricted navigation, and the general economic situation in the markets seems to be heading towards a gradual recovery.” An ongoing debate centres on a new event for the Adriatic shipping sector in 2017, namely the inclusion of this region as Europe’s gateway terminal in China’s New Silk Road, the grandiose infrastructure development project promoted by that country’s government. Currently, Ravenna is looking like it may be up to the task of joining the process, but, to do so, needs to build networks with other ports in the region. It’s perhaps no coincidence that, recently, Ravenna’s new Port System Authority, led by Daniele Rossi, decided to re-join NAPA, the North
Adriatic Ports Association. The port, in fact, had left the association in November 2012, during the presidency of Galliano Di Marco, head of the Port Authority at the time. Their return to the association has the growth of its container handling business as its goal. “The association of North Adriatic Ports is now playing by a very different script,” said Rossi, “both domestically, with the reform of the port sector and the creation of system authorities, and internationally, where new market phenomena are at play, of which the so-called “Silk Road” is one. It’s a scenario that requires greater determination in defending the role of our ports within Europe, in order to reaffirm and raise the profile of the North Adriatic within the EU’s economic and transport system. This requires, on the part of NAPA, a rethinking of strategies, to which
Ravenna wants to contribute.” For its relaunch, the port aims at leveraging also the fact that Ravenna is one of the EU’s core ports, and the hub for two transEuropean corridors, the Mediterranean one, between Algeciras and the Ukraine (which includes the Turin-Lyon segment), and the Adriatic-Baltic one. At the beginning of November the coordinator of the latter corridor, Kurt Bodewig, visited the port of Ravenna: “The Adriatic-Baltic corridor,” pointed out Rossi, “crosses 6 EU member states (Poland, the Czech Republic, Slovakia, Austria, Slovenia and Italy), along some 1,800 kilometers, connecting the Adriatic ports of Trieste, Venice, Ravenna and Koper with ports in the Baltic Sea. In total, the corridor encompasses 13 metropolitan areas, with corresponding airports, 25 ports, and 24 intermodal platforms.”
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IRSA releases 73,400 cusecs water Wednesday December 13, 2017
Business
ISLAMABAD: The Indus River System Authority (IRSA) Monday released 73,400 cusecs water from various rim stations with inflow of 37,000 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1441.24 feet, which was 61.24 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 22,200 cusecs and outflow as 35,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1119.80 feet, which was 79.80 feet higher than its dead level of 1,040 feet whereas the inflow and outflow of water was recorded as 4,400 cusecs and 28,000 cusecs respectively.
‘Pak-China ties model of state-to-state relations’ ISLAMABAD
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lanning Commission Deputy Chairman Sartaj Aziz has said that China had become a reliable partner in Pakistan’s national development efforts as their relations had become a model of state-to-state relations. Talking to a 60-member Chinese business delegation, Sartaj said that Pakistan was an ideal destination for Chinese investors due to the goodwill for Chinese and potential of investments in the China Pakistan Economic Corridor (CPEC) which had changed the economic outlook of Pakistan, and that was also being
PFA seals 14 food points in south Punjab MULTAN
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acknowledged globally. The delegation called on him here at his ofSice. He said that Pakistan’s macroeconomic indicators continued to solidify grounds for a sustained upward growth trajectory because key constraints impeding
Ahsan stresses improving regional connectivity to boost trade
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unjab Food Authority (PFA) sealed 14 eateries in south Punjab over unhygienic conditions and the use of unhealthy ingredients in food items. In a statement issued here , Director Operations South Punjab Muhammad Saeed Leghari said that the authority closed four food outlets in Multan and Dera Ghazi Khan each, two each in Bahawalpur and Layyah and one each in Muzaffargarh and Khanewal. The food points included school canteens, factories, water plants, bakeries and restaurants.
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the economy from achieving high growth such as power supply and security situation had improved. The gross domestic product (GDP) growth increased last year to a decade high of 5.3%, he added. Supportive policies like historic
low interest rate, high infrastructure spending and better law and order, Sartaj said, had encouraged a number of firms to pursue expansion plans. He said that the government had announced an incentive package for exporters, which would provide an opportunity to private sectors, including foreign investors, to fully beneSit from it by modernizing their business processes, investing in research and development, improving human capital, seeking international certiSications, and meeting quality standards. Sartaj Aziz said the CPEC was the most important pillar of ‘One Belt One Road’ initiative and both the countries had agreed to build roads, railways, and oil and gas pipelines under the project.
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inister for Planning, Development and Reforms, Ahsan Iqbal has stressed the need for enhancing regional connectivity among the member states of Economic Coordination Organization (ECO) to maximize trade volume among the member states. “Keeping in view the increasing connectivity across the world, the region requires greater collaboration to promote trade, develop-
ment, peace and stability, however the people of ECO member states are still lacking direct road, rail and air links, and are facing problems in acquiring visas, which is fundamental requirement to enhancing trade,” he said while inaugurating the four-day 28th meeting of ECO Regional Planning Council here. He said the world is more connected now therefore “we need cooperation instead of confrontation.” He said, “We need to promote road and railway connectivity and direct Slights among the member states besides further facilitating visa
regimes so that more and more people could visit each others country.” The minister said the ECO Summit held in Pakistan earlier this year had chalked out a vision 2025 for ECO member states under which it was agreed to increased regional trade by two folds by 2025. Currently, he said the total trade volume among the member states is less than 9 per cent of the overall trade volume of the member states across the globe. The minister also stressed the need for promoting cooperation in energy sectors saying that the Turkmenistan-Afghanistan.
PIAF reiterates demand for regulatory duty withdrawal ISLAMABAD
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akistan Industrial and Traders Associations Front (PIAF) reiterated its demand for regulatory duty (RD) withdrawal on import of necessary items including industrial raw material. PIAF Chairman Irfan Iqbal Sheikh, Senior Vice Chairman Tanveer Ahmed Sufi and Vice Chairman Khawaja Shahzeb Akram called for an immediate consultation over the issue of regulatory duty to ensure businessfriendly decisions. They were of the view that unnecessary imports were widening the trade deficit, asserting that an extensive consultation between public and private sector was a must to bring clarity to the issue of regulatory duty. They said that the decision would increase under-invoicing and promote smuggling; therefore the government must promote export by resolving fundamental issue of high cost of doing business particularly in Punjab. The PIAF chairman said the declining exports and widening trade deficit posed a serious threat to economic growth and required to be tackled on priority basis. The government, he said, should also find a lasting solution to the problem of high prices of foodstuffs, as the high import duty also causes high inflation.
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CPEC game-changer for entire region: Chinese minister ISLAMABAD
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ssistant Minister of International Department of the Communist Party of China (CPC) Wang Yajun said China-Pakistan Economic Corridor (CPEC) and One Belt One Road (OBOR) projects were the game-changer not only for Pakistan but also the entire region. Briefing on 19th National Con-
gress of Communist Party of China (CPC) he said “All political forces and people in Pakistan are unanimous on CPEC and OBOR projects. The CPEC is a real game-changer project for Pakistan.” “We are determined to gather fruits of the CPEC and OBOR and pass on them to people of the two countries – Pakistan and China,” he added Yajun said energy crisis in Pakistan had been overcome to great extent due to timely completion of a num-
ber of power projects under the CPEC. The minister said during his visit to Lahore, he himself witnessed the fast track development taking place under the CPEC. He said people of Pakistan had great love and affection for China and narrated three years back story when he visited the Lahore fort to see the Pakistan culture. A group of students, after seeing him from far away, chanted slogan “Long Live Pakistan China friendship. “ The Chinese minister said he asked
the students whether they had visited China ever and they reply was no, but they knew everything about China especially Silk Road and Great Wall of China. “People of China and Pakistan are sincere and supportive to each other in difSicult time.” Wang Yajun said that China and Pakistan always stood by each other shoulder to shoulder in every difSicult time. “China and Pakistan relations are unique of its kind; we have blood to blood relations, generation to generation, we
want that relations between two countries should progress more and should be stronger like iron,” he added. To a question he said that China had adopted open policy and welcomed investment from any country any group. Sharing the 19th National Congress of Communist Party of China (CPC) report, he said Chinese President Xi Jinping in his report to the National Congress reviewed the historic achievements made in China’s development over the past Sive years.
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SAARC Chamber announces three-day high level business leaders conclave DUBAI: The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) November released regulations clarifying the value-added tax treatment of residential and commercial real estate purchases and sales. VAT is being introduced in the UAE from January 1, 2018. The FTA explained that the supply of commercial real estate (sale or lease) will be subject to the five percent tax rate, while residential units will generally be exempt, except for the first supply of a new residential building within the first three years of its construction, which will be zero-rated. The FTA defined the supply of real estate as “activities that include, among other things, the sale, lease, or giving of the right to any real estate.” Adding: “A residential building is a building or part thereof that is intended and designed for occupation by individuals, and mainly includes buildings that can be occupied by any person as [a] main place of residence.
Need stressed to make cities engine of economic growth
Wednesday December 13, 2017
Chambers
‘Pakistan-Iran trade improving, 31 pc rise witnessed last year’
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he Policy Research Institute of Market Economy (Prime) with the support of Center for International Private Enterprise (CIPE) and in collaboration with Islamabad Chamber of Commerce and Industry (ICCI) organized a consultative session on developing a Municipal Competitiveness Index in Islamabad and four provincial capitals. The session was aimed at holding a vibrant discussion on how to optimize the existing strengths of the cities to attract investment and enhance their role in the GDP growth of the country. Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that well
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planned and well developed cities were making significant contribution to the GDP growth of their respective countries. He said London accounted for almost half of Britain’s GDP while Boston, New York, Washington and Los Angeles accounted for one third of USA’s GDP and urged that Pakistan should also focus on developing its major cities on modern lines to convert them into engine of economic growth. He said better development of cities would attract more investment, promote industrialization, generate employment and make them hub of economic activities. He emphasized that drastic measures should be taken to improve the infrastructure in commercial and industrial areas of Islamabad to spur the growth of local economy. He said that government should also cooperate in establishing small and cottage industries in rural areas of Islamabad that would help in uplifting the living standards of rural people and improving economic growth as well.
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he Ambassador of Islamic Republic of Iran Mehdi Honardoost has said that lack of information and know-how about the capabilities of Iran and Pakistan amongst the business communities of the two neighboring Islamic countries was hindering trade but the situation has been improving as Pakistan-Iran trade volume improved by 31 percent last year. “Business communities of both countries are totally unaware of each other’s capabilities and opportunities therefore, we have to focus on exchanging information, trade delegations and other promotional activities between the two countries, besides improving ties of Karachi Chamber with its peer Chamber in Iran”, he added while speaking at a meeting during his visit to the Karachi Chamber of Commerce and Industry. Iranian Consul General in Karachi Ahmad Mohammadi, President KCCI Muffasar Atta Malik, Senior Vice President Abdul Basit Abdul Razzak,
Vice President Rehan Hanif, Former President Majyd Aziz and KCCI Managing Committee members attended the meeting. Iranian Ambassador said that both countries have so many commonalities and similarities which simply cannot be found between any other countries of the entire region. He stated that there was a huge potential of cooperation between the two powers of the region with good neighborly ties and whole history of friendship and fra-
ternity. He was of the view that the regional problems like terrorism, human trafSicking and narcotics trafSicking should be solved by the regional countries, which have common perception, common interests and common concerns. Mehdi Honardoost said that Iran was keen to develop its ties with Pakistan by focusing on enhancing trade which continues to grow each year, exporting electricity to Pakistan, implementing Iran-Pakistan
SAARC CCI to organize business conclave ISLAMABAD
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AARC Chamber of Commerce and Industry (SAARC CCI) has announced to organize a high level “3-day 6th mega edition of SAARC Business leaders Conclave (SBLC) on March 16 at Kathmandu, Nepal. It was disclosed by President SAARC CCI Suraj Vaidya in a meeting with SAARC Chamber Pak chapter Vice President Iftikhar Ali Malik. In a statement issued here on Friday, he said that SAARC Chamber of Commerce and Industry in collaboration with Federation of Nepalese Chambers of Commerce and Industry would organize the conclave in which chambers from all South Asian member countries would participate besides highlighting the importance of trade in the region.
Unfolding the salient features of the enclave, Suraj said the theme of this year’s conference was “Unleashing Shared Prosperity through Economic Integration.” Prime Minister of Nepal will inaugurate while ministerial round will have the participation of all the Commerce Ministers of SAARC member nations. Over 500 leading business leaders, eminent International experts and senior dignitaries from public and private sectors of SAARC member nations were expected to attend the business conclave, he added. Highlighting the importance of the economic integration in South Asia, he said the urgency of the need for new policies to stimulate economic growth was all the more poignant because the region as a whole remains plagued by extreme poverty. Suraj Vaidya said the geopolitical
importance of South Asia, shared borders with Central Asia and the oil-rich Gulf, its natural resources, and its human capital make the region’s potential for growth enormous. Speaking on the occasion, Iftikhar Ali Malik said the regional dynamic today was skewed in such a way that the larger economies, India and Pakistan, were more likely to import from more distant countries than from the region. He said 6th SAARC Business Leaders Conclave was an opportunity where leading business leaders, politicians, opinion makers, prominent academicians, and Industry players, renowned and celebrated Sigures of South Asia, being the drivers of socio political change, could vocally advocate policies that promote such integration. “SAARC Business Leaders Conclave is truly the only podium that articulates and speaks the voice of the private sector to the public sector in the region.
Gas Pipeline, signing of Free Trade Agreement and commencement of banking transactions between the two brotherly countries. “Your rivals are much faster and active than you so you also have to take steps accordingly. You have to grab some more portion of the Iranian Market which has a lot of potential for Pakistani goods and services. We are also ready to share almost everything with our Pakistani brothers and sisters”, he added.
ICCI for focusing on savings & investment to spur growth heikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry has called upon the government to focus on promoting savings and investment in order to spur the economic growth of the country as these two instruments played important role in generating resources to provide funds for developmental projects and to get rid of heavy foreign borrowings. He said many countries including China, Singapore, South Korea, Malaysia, India and others have accelerated growth of their economies by focusing on savings and investment, but the performance of Pakistan on this account was not up to the mark. He said Pakistan’s saving rate was many times less than that of China and India as savings rates in China. –CB Report
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Additional Collector Saeed issues notice to alleged vehicle smuggler FAISALABAD: The Customs Adjudication Additional Collector Muhammad Saeed Asad has issued a show cause notice to a suspect in a non duty paid foreign origin used Mitsubishi Pajero. As per details, Mainwali Anti Smuggling Organization following information intercepted a Mitsubishi Pajero bearing Registration No: SAE-316 which was coming from Lahore near M.M alam Road Mainwali. The team asked the driver of the vehicle named Muhammad Hussain to show documents regarding legal import of the vehicle but he could not produce the same.
Wednesday, December 13, 2017
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MCC Hyderabad gets Rs304.833 million of duties & taxes during six days HYDERABAD ASLAM ANJUM QURESHI www.customsbulletin.com
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he Model Customs Collectorate (MCC) Hyderabad has generated Rs304.833million customs duties and taxes during Sirst six days of December 2017-18. Sources told Customs Today that the department collected Rs80.332million of customs duty, Rs224.145million as sales tax, Rs0.000million of federal excise duty (FED) and Rs0.356million as withholding tax (WHT) during the abovementioned period. The MCC Hyderabad received Rs304.833million in six days of December 2017 and assigned the target with the collection of Rs431.500million as customs duty (CD), Rs1160.260million of sales tax, Rs2.150million as federal excise duty and Rs29.290million of withholding tax during June so the MCC has fetched a total of Rs1623.200million to the national exchequer. The major sources of tax revenue remained Hyderabad Dryport State Warehouse, SukkurLarkana Division, M/s Rema Cooking Oil and others. The Anti-Smuggling Organization (ASO) also seized nonduty-paid goods worth millions of ru-
pees. Sources told CT that, under the supervision of Collector Akhlaq Ahmad Khattaq, Additional Collector (HQ) Dr Aamer Nawaz Hamid, Deputy Collector Basit Hussain, Deputy Col-
lector Dry Port Principal Appraiser and Statistical Revenue ASO and others played an important role in the revenue collection, ofSicials said. The Model Customs Collectorate (MCC)
Hyderabad, Anti-Smuggling Organizations (ASO) Hyderabad, Sukkur and Larkana Divisions aborted various smuggling attempts and made big seizures of non-duty-paid items, 50
bags of 30 kg Iranian cumin and 1200 jars of master extra Mobil oil in different operations worth millions of rupees during six days of December Fiscal Year 2017-18.
‘KPRA set to become largest revenue contributor to provincial treasury’ ISLAMABAD
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he Khyber Pakhtunkhwa Revenue Authority (KPRA) has generated Rs34billion in tax collections since its inception in 2013. In the year 2016-17, KPRA contributed 56% to the total provincial tax revenue. These views were stated by Director General KPRA Tahir Aurakzai during a multi-stake-
holder’s awareness and sensitization session on the revenue generation by KPRA held at the Pakistan Academy for Rural Development. While commenting on the performance of the authority, Tahir Aurakzai added that before the 18th amendment, there was no mechanism with the provincial governments to collect the GST taxes. “The present government took initiative and established KPRA under the KP Finance Act 2013. This year till November, KPRA has generated Rs5billion taxes against its set target of Rs13.6billion”, he added.
The session was informed that the KPRA was successful in generating Rs6.2billion against its set target of Rs6billion in its Sirst year
of inception. In 2014-15, the KPRA collected Rs6.2billion against Rs12billion target, in 2015-16 Rs7.27billion were collected
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against its target of Rs8billion whereas in 2016-17 Rs10.27billion were generated against its target of Rs10billion. Currently efforts are underway for transparent recruitment of ofSicers from BPS 1 to 19. According to KPRA Director HR Arshad Afridi, the authority is focusing on enhancing the credibility and transparency in the recruitment process for gaining public trust. Moreover in the current year, donor support projects have also been initiated along with developing the organizational structure including establishment of directorates and collectorates.