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Karachi, Thu December 14, 2017

ISLAMABAD

M FAIZAN

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he federal government, with the Oinancial assistance of the Asian Development Bank (ADB), has embarked on a Olagship project titled “Integrated Transit Trade Management System”, under which three state-of-the-art border complexes would be established at the border posts of Torkham, Chaman and Wagah. The objective of the project is

to facilitate trade with neighbouring countries without compromising on the security issues.

In order to review the progress of the project, a meeting was convened by the Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan at FBR Headquarters Islamabad. Member Customs Muhammad Zahid Khokhar also attended the meeting.

Country Director of the Asian Development Bank Ms Xiaohong Yang was also present. The Project Director of the project of FBR Dr. Zubair

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Yusafani gave detailed presentation, explaining background, objective, overview and progress of the project till date.

The Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan clariOied that there shall be no deviation from overall objective of the project, which is to maximize facilitation to legitimate trade and passenger movement by reducing the dwell time, eliminating bottlenecks and improving procedures, without compromising on regulatory controls and security.

Exports Section BBIA generates Rs15438.164m during five months

DG Valuation Surriya to revise VR No. 845/2016 on December 26

Court approves judicial remand of accused involved in smuggling

PM chairs meeting to review incentives for IT

Customs Exports recovers Rs 16.34m from four defaulter companies

The Customs Exports Section of the BBIA Islamabad earned Rs15438.164million’s | See pAge 02 |

DG Valuation has decided to revise the Valuation Ruling No: 845/2016 | See pAge 03 |

Court of Customs Taxation and Anti-Smuggling has granted a 14-day | See pAge 04 |

PM Abbasi chaired a meeting to review fiscal and non-fiscal incentives | See pAge 11 |

Customs Exports has recovered the evaded taxes and duties amounting | See pAge 16 |

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Chief Commissioners directed to provide details of manual returns Thursday, December 14, 2017

Islamabad

ISLAMABAD: All the Chief Commissioners have been directed to provide details of manually filed income tax returns for tax year 2017.

The finance division of the ministry asked the revenue board to provide information of returns received, entered and yet to be entered manually in the system.

AtIr hears final exports Section BBIA generates arguments on petition filed rs15438.164 million during five months against FBr ISLAMABAD

ISLAMABAD

NAeeM uLLAh tArIQ

tArIQ DerYA

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he Customs Exports Section of the Benazir Bhutto International Airport Islamabad earned Rs15438.164million’s value of export business during July to November Financial Year 2017-18.

According to details given by sources of the Customs Exports Section of Model Customs Collectorate (MCC) Islamabad that, during Oirst Oive months of current Oinancial year, the Exports Section received 14,898 Goods Declarations, most of which comprised leather goods, surgical instruments, textile garments and chilled fresh meat.

Sources notify that the Exports Section fully accommodates the exporters. He added that, during the month of November FY17-18, the Export Section paid Rs21.00million of rebate refunds to exporters so that they can do exports easily.

Sources said the exports will be enhanced during three months (October to December) FY17-18 against the 1st Quarter FY17-18. Sources further said the 1st Quarter FY1718 comparatively showed good performance against the same period of corresponding FY16-17. During the month of September FY17-18, the Exports Section showed 38.17% growth with an extra value of Rs860million against the previous FY16-17. During September FY17-

ppellate Tribunal Inland Revenue (ATIR) heard final arguments on a petition challenging show cause notice issued by field office of Federal Board of Revenue regarding outstanding taxes and reserved decision on the case. Account Member Dr Ghulam Mujtaba Bhatti had reserved decision on tax matter filed by M/s Pakistan Mobile Company Limited. According to details, M/S Pakistan Mobile Company Limited had challenged recovery notice issued to it in head of outstanding income tax by the LTU, Islamabad. M/s Pakistan Mobile Company Limited had submitted that the department had issued the demand for the tax year 2015 in head of income tax under provisions of Income Tax Ordinance, 2001. Federal Board of Revenue (FBR), officers of LTU including Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and Appellate Tribunal Inland Revenue (ATIR) were made respondent in the case. The case was remanded back to the tribunal by the IHC couple of months ago.

18, the Exports Section generated Rs3112.14million of business while it did Rs2252.33million of business during the same period of FY16-17.

The sources told CT that, during the month of August FY17-18, the Exports Section displayed 53.20% growth against the same period of corresponding FY16-17. During

above said period, the Exports Section received Rs2635.21million of business during August FY17-18 while it did Rs1720.00million of business during FY16-17. The Exports Section got extra business worth Rs915million during FY17-18 against the same period of previous August FY16-17. During July FY17-

18, the Islamabad Exports Section demonstrated 2.88% growth in exports against the same period of corresponding FY16-17. Source added that, during July FY17-18, the Exports Section earned Rs2453.09million whereas it did exports business of Rs2384.38million during the same period of previous FY16-17.

Ihc hears various customs cases I

ISLAMABAD

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slamabad High Court’s two benches heard couple of customs cases involving field offices of Federal Board Revenue and others.

IHC Division bench comprising Justice Aamer Farooq and Justice Mohsin Akhtar Kiyani heard the case Oiled by Additional Collector Customs, Islamabad. The ofOice had

Oiled the case against Akbar Khan and others. The bench dated in ofOice hearing on the case following tight schedule on the day.

Justice Shoukat Aziz dated in ofOice haring on Ehsan ur Rahman customs matter pending with courts since months. The same bench also issued fresh notices to parties regarding assisting court on the matter of M/S Hasas Engineering and Construction Company Private Limited. The appellant had challenged the act of recovery of said amount

by Commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad.

ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty. M/S Hasas Engineering and Construction Company Private Limited had prayed the court that FBR ofOice had issued a recovery notice to the company which did not hold lawful grounds.

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SHC division bench orders release of shoe polish consignment KARACHI: The Sindh High Court has ordered release of a consignment of shoe polish imported from China by Bright Star Business Solutions.

The order was issued by a SHC division bench comprising Justice Munib Akhtar and Justice Omar Sial.

The consignment was put on hold by the Intellectual Property Directorate of Pakistan Customs. A lawyer from Franklin Law Associates appearing for the petitioner questioned the hold placed submitting that the Cherry Blossom was made in another country (Britain) and it has been closed down.

Shc directs customs to submit details of LeD light consignments

Thursday December 14, 2017

Karachi

Dg Valuation Surriya to revise Vr No. 845/2016 on December 26

KARACHI

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he Sindh High Court has directed Pakistan Customs to submit details of consignments of LED lights pending release. The SHC bench, comprising Justice Muinb Akhtar and Justice Omar Sial, earlier heard counsel for more than two dozen petitioners/importers represented by Franklin Law Associates.

The bench which has passed interim order allowing concessionary rate of custom duty and other taxes to consignments of LEC lights which are not manufactured in Pakistan, inquired from Energy Development Board that if they have any reservation about an official communication/letter placed on record of the court.

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FIA arrests a man for defrauding uS visa seekers KARACHI

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he Federal Investigation Agency’s Anti-Human Trafficking Circle, Karachi, arrested a man on charges of defrauding people.

As per a statement, an agent identified as Aurangzeb, son of Abdul Munaf Chohan, was arrested for defrauding people of Rs1.8 million on the pretext of providing immigrant visas for the United States of America.

Moreover, a FIA spokesman said the authority’s Cyber Crime Circle, Karachi, has launched a probe on a complaint by the secretary of the Sindh Public Service Commission regarding the circulation of a fake press release about postponement of the Combined Competitive Examination test.

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KARACHI

wAQAr AhMeD ANSArI www.customsbulletin.com

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irectorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 845/2016 on December 26, 2017, it is learnt.

According to the details, Director General Surriya Butt has said that the department was reviewing suggestions from importers to set new prices of coffee in retail packing. She said that some valuations, which were issued in 2016, were being reviewed from the beginning.

Moreover, the valuations will be set in view of rising prices in the international markets. Sources told that a petition was submitted by the importers to Customs Valuation in which change in prices of coffee of retail packing was requested.

Sources said the Valuation Ruling No: 845/2016 was issued May 05, 2016. A meeting was held with the stakeholders on 1st December, 2017. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained.

Source said now a day’s Director General Surriya Ahmed Butt are continue meetings from importers, because a number of application

have submitted from Importers to change the prices of import items.

It is necessary to mention here that Director General Surriya Ahmed Butt has revised the valuations viscous suiting fabrics, Polyester fabrics and polyester suiting fabrics on 30 November 2017.

Meanwhile, The Directorate General of Customs Valuation has issued Valuation Ruling No. 1224/2017 to determined valuation of grey fabric and bleached fabrics. Customs val-

A meeting was held with the stakeholders on 1st December, 2017.

Importers were asked to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item

FBr to recover rs2b from cNg stations

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KARACHI

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he Federal Board of Revenue (FBR) has decided to recover outstanding amount of Rs2 billion from the owners of CNG stations, which are paying lower sales tax after deregulation of prices a year ago.

According to an FBR ofOicial, the government had deregulated the CNG prices on December 21, 2016

and allowed the concerned association of CNG stations to determine the price for consumers,” “Earlier, the prices were regulated by Oil and Gas Regulatory Authority (OGRA) and the consumer price, determined by the regulator, was linked with the collection of sales tax from CNG stations,” the ofOicial said, adding that the sales tax was linked with OGRA rates on March 31, 2014 through SRO 236(I)/2014 and the last value of the sale price notiOied by the regu-

lator was Rs67 per kilogramme for CNG stations, which remained applicable till the date of deregulation.

“However, following the deregulation, the sale price of natural gas has increased to Rs77 and the enhanced amount escaped from the implementation of sales tax,” the ofOicial said. The source added that the FBR would send draft amendment to the parliament for approval as the revenue body could not amend the law through statutory regulatory orders (SROs).

ues 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 redetermine the customs values of polyester grey fabric in accordance with prices in international market.

The directorate Oixed the customs values at $3.8 per kilogram on import from China and at $3.9/kg on import from other origins.

FBr delegation calls on Sindh Ig delegation of under training officers of Federal Board of Revenue (FBR) met Sindh Inspector General of Police A D Khawaja. The delegation headed by FBR Director M Nasir Khan discussed professional matters.

IGP briefed about the working of Sindh police to the delegation. On the occasion Additional IG-CTD Dr Sanaullah Abbasi and other police officers.

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FTO hears case filed by M/s Decent Packages Lahore against RTO-II Thursday December 14, 2017

Lahore

LAHORE: The Federal Tax Ombudsman (FTO) has heard a case filed by M/s Decent Packages Lahore against the Regional Tax Office (RTO-II) Lahore and adjourned it until the next date of hearing.

FTO Advisor Mian Munawar Ghafoor heard the case. The counsel for the appellant argued that the RTO had failed to release the sales tax refund to the appellant since two years. He said the RTO-II has been collecting excessive tax from the company for the last two years.

Although the petitioner approached the officials concerned several times for release of refunds yet the RTO officials failed to clear the refunds after the passage of a reasonable time.

Finally, the appellant decided to approach the FTO seeking intervention in this case.

Fto puts off tax refund court approves judicial remand appeal hearing against of accused involved in smuggling rto Sialkot till next date LAHORE

SAJID NAwAZ

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he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Oiled by one Muhammad Tufail against the Regional Tax OfOice (RTO) Sialkot by the next date of hearing.

FTO Advisor Mian Munawar Ghafoor heard the petition in which counsel for appellant argued that the RTO Sialkot has not released the refund to the appellant since two years. He said the RTO Sialkot has been collecting excessive taxes from the appellant for the last two years.

Although the company approached the ofOicer concerned many times for release of refunds yet the department did not entertain the application, even after the passage of a

customs tribunal hears eight cases, adjourns all he Customs Appellate Tribunal’s Division Bench-II heard eight cases on Thursday and adjourned all of them 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 seven cases including Ameer Alam Khan versus Customs Faisalabad, Hijvary Traders versus Customs Lahore, Master Link versus Directorate of Intelligence and Investigation Lahore and Khadim Hussain Chandio versus Customs Multan. The same bench heard cases of Dad Muhammad versus Directorate of Intelligence and Investigation Multan, Customs Lahore versus Faisal Ijaz, Nimra Textile versus Customs Faisalabad and Summer Mehmood versus Customs Lahore. The tribunal bench also proceeded the cases reserved for the same day. –CB Report

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reasonable time.

Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO) seeking his intervention in the case. So the counsel appealed the FTO advisor to direct the commissioner of the RTO to clear the refund claims. The counsel further said that delay in release of refunds puts the burden on the taxpayer therefore the RTO should make an audit of the cases and release the extra amount collected from the taxpayer. On the other hand, counsel for the RTO argued that the appellant has not submitted all the record in the ofOice on basis of which it is claiming refunds. If appellant provides all the accurate record, the RTO will release the refunds, if any, after a proper assessment, he maintained. After hearing the arguments from both sides, Advisor Mian Munawar Ghafoor adjourned the hearing and directed the parties to appear on the next date of hearing to present arguments in the case.

LAHORE

M IMrAN MehAr

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he Special Federal Court of Customs Taxation and AntiSmuggling has granted a 14-

day judicial remand of an accused apprehended in smuggling of cigarettes, cloths, mobile phones and some other items as well.

Accused Muhammad Hassan was arrested by the customs intelligence authorities from Lahore. The customs intelligence authorities conducted an operation on the intelli-

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gence based information at Band Road Lahore and held the accused.

The customs intelligence recovered a smuggled and non-custompaid cloths, mobile phones, cigarettes, Gutka and fireworks from the accused. The worth of the recovered items is more than Rs3.6million in the local market.

The accused has caused the treasury a big loss in the wake of duties and taxes. The investigation team had presented him before the customs court for getting his physical remand to investigate more on the issue that was approved by the court. Customs Judge Tahir Sabir has granted his remand for two days. After the completion of the remand, the customs team will present him again before the court for further action. The customs has registered a case against the accused and launched an investigation as well after impounding the vehicle and cloths that he was trying to smuggle.

customs recovers alcohol, mobile phones Ipps urges govt to resolve payments issue from passengers at Lahore airport he Independent Power Produc- Rs 195 billion (as of October 31, 2017)

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he Customs ofOicials have conOiscated as many as 23 alcohol bottles and dozens of mobile phones from passengers travelling via different Olights during various operations at Allama Iqbal International Airport.

Sources told Customs Today that the Olights were coming from Dubai to Lahore, Turkey to Lahore, Jeddah to Lahore and Muscat to Lahore. The customs team took action in PIA Olights, Turkish Airways, Gulf Air and Saudi Arabian Olight. During actions in these

Olights, the customs staff recovered 23 bottles of alcohol. Mobile phones were also conOiscated from different passengers while Customs allowed all passengers to go after conOiscation of alcohol bottles from their possession.

Customs has also conOiscated 2 LED of 32 and 2 LEDs of 46 inches from two passengers. The security ofOicers have launched an investigation into the matter. Customs has started strict checking of the luggage of the passengers specially coming from European countries. –CB Report

ers Advisory Council (IPPAC) has urged the Prime Minister to resolve serious Oinancial crisis the independent power producers are facing on account of large overdue receivables from NTDC/CPPA. “This is in continuation to our previous letter dated November 15th and as highlighted in the previous letter, the overdue amounts payable to the 20 members of the IPPAC are still outstanding and growing every month,” said the IPPAC in a communique on December, 2017. “Since our last correspondence, the overdue amounts have risen from

to Rs 205 billion (as of November 30, 2017),” stated the letter, adding that for the last several months, IPPs have been requesting the Ministry of Energy on various forums for amicable resolution of overdue balance. However, the letter added, Ministry of Energy has not been able to resolve these issues. “We would like to again emphasize that many of the IPPs are now so cash-strapped that they cannot timely service their respective Oinancial obligations to their lenders, operators, fuel suppliers and other third parties,” stressed IPPAC. –CB Report

Number of branchless banking agents crosses 0.4 million

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LAHORE

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he number of branchless banking agents are witnessing continuous surge throughout the country, crossing 0.4 million at end of July, 2017.

The number of branchless banking agents grew to all time high level

at 402,710 throughout the country which includes customers care ofOices of mobile phone companies, franchises of mobile phone companies, pharmacy, and mobile accessories shops, groceries and retail stores. In outgoing quarter, a new branchless banking was introduced

by JS Bank named JCash which also added more than 30 agents in its network. As per State Bank of Pak-

istan (SBP), in current Oinancial year 2017-18, the government accepted demands of the sector while giving exemption of tax to branchless banking agents for withdrawal of withholding tax. Now, companies should scale up their network of branchless banking services, especially through retail sector to broaden the base of agents in the country. Meanwhile, Pakistan

Telecommunication Authority (PTA) in its annual report 2017 has revealed that mobile banking market, mobile wallet accounts and agents are playing instrumental role. The biometrically veriOied SIMs have facilitated the growth of m-wallet accounts during the last two years, and a signiOicant growth has been seen i.e. total mobile banking accounts (m-wallets) in Pakistan.

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he Federal Board of Revenue (FBR) appears to be ‘powerless’ against corrupt ofOicials of the Directorate of Customs Intelligence and Investigation and has failed to resolve genuine concerns of importers, importers say.

The importers of Southern Punjab, especially of the Multan region, allege they are being “blackmailed” by few ofOicials of the Customs Intelligence and Investigation for one reason or the other during transportation of their goods. They allege that they create troubles for the genuine importers in the name of “anti-smuggling” activities and take huge bribe from them under the garb of road checking.

Ghulam Hussain, Director of Hussain Enterprises, told Customs Today that he imported electric goods and mechanical parts from different countries. The clearance process of the imported consignments is already difficult and after the clearance of goods, the Customs Intelligence teams start pestering the importers in the name of checking. The authorities demand original import documents during transportation of goods after clearance from the port. He said that the imported consignments are cleared through digital record system of WeBOC and they should have given access to the import data.

But authorities irritate the genuine importers for the sake of kickbacks, he alleged. Field Intelligence Unit of the Customs teams also misuses their powers in the name of examination of imported shipments and openly demand bribe, he said, adding that if importers refuse to pay them kickbacks then their the consignment are seized on baseless grounds.

Another importer, Khawaja Suleman Siddiqui, said that importers face issues of delay in clearance of their consignments and the Customs Intelligence staff wastes their precious time by opening containers for examination and break their seals.

After thorough examination of the containers, the authorities do not place goods again at their

Thursday, December 14, 2017

places, he said adding that a few Customs Intel- purpose of Customs Intelligence is to carry out acligence employees and officers are damaging the tions against smuggling but they are busy in comnational economy by discouraging genuine im- pelling importers to pay bribe and violating diporters and they are “notorious” for framing rections of the Supreme Court, he said. false seizure after proper clearance through the Importer Hassan Raza Malik told Customs Todry ports. Siddiqui said the customs staff ap- day that there are still honest and profesplies every trick and technique to detain goods sional Customs Intelligence officers who disand on the basis of verification method they courage malpractice in the department and raise objections in original goods declaration direct their staff to work fairly but a few black and this process of Customs Intelligence con- sheep have defamed the Customs Intelligence sumes additional time for verification of import image in the eyes of the importers. He said goods and Customs Intelligence staff sometime that the greedy officials demand heavy bribe, damages goods during the examination due to otherwise they seize the containers by framlack of professional training. Siddiqui said that ing false case against importers and a majorthe Customs Intelligence staff has no appraising ity of their cases prove false in courts. The experience and the only purpose of checking and FBR must punish their corrupt officials and rechecking is to blackmail the honest importers. their detecting agency should be punished on He said that the Customs Intelliwasting time of importers and take strict acgence Department is runtion against them. ning like a “mafia” orDeputy Director National Accountability Bureau ganization and is Multan Asim Raza said that NAB is taking action involved in corrupagainst corrupt ofOicials when it received any comtion, adding that plaint. He said that if imsome senior offiporters approach him cials are also against Customs Intelliaware of the situagence, he would look into tion but they keep the matter. mum after receivHe said that corruption ing their share of becomes a disease in the illegal money. A the country, infectconsignment is examing every aspect ined in Karachi, Interior of life, adding ld o t , s e ris p Sindh, after entering that “we are r e t n and ain e s s s d Punjab and every Dicombating u o h o g or of lec tric rectorate checks it against mene t D i re c t d n e e t r por iffe d m i separately and conace of corm e o h fr that par ts ess of l c sumes additional r u p t i o n a o c r i p n e ranc a mecha time, he alleged. through ace l s i c ts he nmen The FBR should withcountability ries. t g t i s n n u o o c dc draw powers of u/s drive in the porte lt the im diffic u 25 and u/s 32 of Cuscountry.” He y d a e r al toms ACT, 1969 from said, “We can Customs Intelligence to question the corprotect genuine importers rupt ofOicials but and settle their concerns for importers did not promotion of trade. Because approach him.”

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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

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Moody’s new rating for pakistan

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oody’s Investors Service, a US credit rating agency, has assigned B3 rating to dollardenominated international bonds issued by the government last month to raise $2.5 billion revenues and bolster the falling foreign exchange reserves of the country. An international bond is considered investment grade if its credit rating is B3 and is likely enough to meet payment obligations. In that case, the banks are also allowed to invest in them. Moody’s hope the continued reforms by the government would help tap robust growth potentials. The rating agency also believes the B3 reflects a credit profile that balances robust growth potential and a relatively large economy. However, it has appreciated the reforms process which was started under a three-year extended facility program of the International Monetary Fund.

The agency also supported the development of infrastructure under the China-Pakistan Economic Corridor project. The country received $1.5 billion via 10-year notes at 6.875 percent and $1 billion through five-year sukuk at 5.625 percent to arrest the declining foreign exchange reserves. Reports suggest Standard and Poor’s, another US based rating agency, had assigned preliminary ‘B’ long-term rating to the international bonds issued by government.

The rating agency has also warned the government against fallout of rising debt burden, narrow income generating resources, poor external payment position and risky credit profile amid balance of payment issue facing the nation. Though the country is expected to have record growth in its gross domestic product, but limited revenue resources will have adverse effect on the economy. The scale of the Pakistani economy is large, but per capita income is very low, showing that the country has limited capacity to absorb economic shocks. Unfortunately, the much advertised reforms are limited to increase tax ratio to generate money to pay back loans to the International Monetary Fund. Finance Minister Ishaq Dar is not tired of praising the government’s commitment to implement reforms to support fiscal and monetary policies. However, it is yet to be seen how the government preserves the gains of so-called macroeconomic stability. The country is passing through political instability which is increasing day by day due lack of interest of the government officials who matter.

growing risk of debt trap A

LAHORE

Dr AFtAB AFZAL

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ccording to newspaper reports, Pakistan has been placed in the list of countries which could default on the repayment of external loans.

This is the condition of the economy of which Finance Minister Ishaq Dar was bragged of all the way during his term in the office that his financial policies lead to achieving macroeconomic stability in the country.

The other countries in the line of default are Egypt and Ecuador whereas Venezuela has already been declared defaulters. It is strongly apprehended that Pakistan will face debt servicing is-

sue in the coming years. According to economists, Pakistan is running out of options and has to act before nothing is left to fall back. The policymakers of the country deemed it business as usual but the financial health of the country is posing serious challengesfor the government which has to be proactive to deal with the emerging situation. The government has gained $2.5 billion by floating international bonds, but the course of economy is strongly linked with export volume which has been diminishing for the last four years.

It is feared that the huge gap between imports and exports would further deplete the foreign exchange reserves to the

extent that the government would be unable to finance six week imports.

The government is facing balance of payments problem and the pressure has been rising in wake of weakening reserve position.The repayment obligations are also growing at a fast speedand the officials of International Monetary Fund are already monitoring the post-loan situation and dictating its terms to the authorities concerned to ensure the collection of money from the people by raising tax rates and duties under different heads. The money collected from the recently floated international bonds is peanuts as the country would need $10 billion to ward

off the possible default during the current financial year. The socalled economic experts and finance managers, who are drawing hefty salaries and perks, have failed to give a positive direction to the economy and wasted the hard earned money on personal affairs. They should now stop boasting of their so-called successes which revolve around acquiring loans after loans. A country with 200 million people, good agricultural land and industrial base, has been mortgaged to the foreign lending agencies. The time has come the people at the helm of affairs should revise their policies and plans to extricate the nation from the rising debt crisis.

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LHC seeks reply from customs authorities on plea by Q-Mobile Company LAHORE: The Lahore High Court (LHC) has sought a reply from the customs authorities on a petition filed by the Q Mobile Company.

According to the details, Justice Shams Mehmood Mirza of the Lahore High Court (LHC) heard the appeal filed by the complainant. The counsel of the appellant, Shafqat Mehmood Chohan, argued before the court that according to the constitution of Pakistan every citizen has the right for business and earning.

Added more that the Q Mobile Company has imported 38,000 mobile phones but the Customs AntiSmuggling Organization has impounded without any legal ground. He prayed the court to declare the action of customs department as illegal and the court may declare null and void the action of Customs AntiSmuggling Organization.

court extends physical remand of suspect in Q-Mobile smuggling case

Thursday December 14, 2017

National

rs102b laundered: FBr set to issue notices to 2,785 rich individuals

KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi extended physical remand of suspect namely Babar Sultan, Chief Finance Officer of M/s Digicom (Q-Mobile) Trading, who was booked for attempting to smuggle more than 78,000 mobile phones in the garb of LED lights (bulbs). During the hearing, the investigation officer informed the court that the prosecution needs further investigation from the suspect, therefore, the court may send him back to the Customs Department. Earlier, the court had recalled his interim pre-arrest bail, during the hearing. The counsel for the customs authorities argued that prosecution had concrete evidence against the M/s Digicom Trading and the suspect played a key role in this scam, therefore, the court may reject his bail. After the arguments,

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the court had recalled interim pre-arrest bail which was granted earlier by this court. After recalling his bail, the customs officials arrested him. On last date of hearing, suspect appeared before the court along with his counsel who moved petition for after arrest bail and argued that his client is innocent and was been falsely implicated in this case, therefore court may granted his bail, after the arguments, court granted him interim bail. Earlier, investigation officer informed the court that on a credible information, a team Intelligence and Investigation raided at Bungalow No 107/1 Lane 10, Kheaban-Rahan DHA Karachi and during the search recovered 78,160 foreign origin mobile phones from 3908 cartons.

ISLAMABAD

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he Federal Board of Revenue (FBR) is set to issue notices to those rich people who mentioned gifts as assets in their wealth/income statements.

During investigations conducted

by FBR’s Anti-Money Laundering (AML) cell in 2016, it identiOied around 2,785 rich individuals who had mentioned in the gift section of their income statements to be holding assets worth millions of rupees.

This probe also revealed that a sum of Rs 102 billion was allegedly money laundered by these 2,785 individuals though exchange of gifts. It is pertinent to mention here that according to Pakistan’s tax laws, gifts are exempted from taxes.

A ofOicial revealed that a couple of months ago, FBR had decided to serve notices to rich individuals asking them to provide details of their assets. He said, “All the Regional Tax OfOices (RTOs) across the country have now started serving notices under section 176 of the Income Tax Ordinance (ITO) 2001, after receiv-

ing directions from the headquarters.” “According to the notices, FBR has asked the respondents to provide details of the copies of gift deeds and means of donating gifts. It also asked respondents to provide the details of assets held by a donor,” he said, while adding that after receiving the required detail, FBR would be able to verify the assets.

However, the ofOicial said that ini-

tially these notices were being served to those people who have received gifts. Among these 2,785 individuals, three tax payers have mentioned to have received gifts worth rupees one billion, eight tax payers mentioned receiving gifts worth Rs 500 million, 50 received gifts valued between Rs 200 million to Rs 500 million, while 97 persons received gifts worth Rs 100 million

to Rs 200 million. According to FBR documents, around 2,348 individuals declared to have received gifts worth Rs 10 million to Rs 50 million.

Among the people who were served with notices by the FBR, the name of deposed prime minister Nawaz Sharif is worth mentioning. The wealth statement submitted by the former premier mentioned that he received gifts worth Rs 1.07 billion.

Ihc adjourns hearing of case challenging AtIr’s verdict ISLAMABAD

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ustice Athar Minallah and Justice Miangul Hassan Aurangzeb of the Islamabad High Court (IHC) dated in ofOice the hearing of a customs matter challenging an announcement made by the Customs Appellate Tribunal Inland Revenue (ATIR). The case was Oiled by Malik Nasir Khan against ATIR, Islamabad.

A division bench of the IHC had earlier directed staff to relist the appeal to be heard along with other cases of the similar nature. In the meantime, the bench also dated in ofOice the hearing of another matter submitted by M/s Mobizone Pakistan (Private) Limited.

M/s Mobizone Pakistan had challenged a recovery claim made by Oield ofOice of Federal Board of Rev-

enue (FBR). M/s Mobizone Pakistan Private Limited had Oiled the reference in which the company had challenged a show cause notice issued by the Large Taxpayers Unit, Islamabad. M/s Mobizone Pakistan Private Limited had prayed the court that FBR ofOice had issued a recovery notice to the company which did not hold lawful grounds.

The appellant had prayed the court to declare the act as illegal and without any lawful authority and an interim stay may be granted against recovery proceedings.

M/s Mobizone Pakistan Private Limited submitted before the court that the impugned order was issued under mala-Oide intentions and had no legal standing or authority and the court may decide on relief which it deemed appropriate in this regard. It also stated that due legal course was not followed by the de-

partment in issuing the order.

M/s Mobizone Pakistan Private Limited had also prayed the court to decide the case early as the appellant had to bear Oinancial complications after the case. M/s Mobizone Pakistan Private Limited had also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication did not addressed grievances of the appellant. ATIR, Federal Board of Revenue (FBR), ofOicers of LTU including Commissioner Inland Revenue, and others were made respondent in the tax reference.

Meanwhile, Islamabad High Court reserved decision on M/s Al Catel Lusent Pakistan Limited customs matter after the appellant and respondent submitted record.

IHC bench comprising Justice Shaukat Aziz and Justice Mohsin

Akhtar heard the case and reserved the decision which would be announced in coming week.

M/s Al Catel Lusent Pakistan Limited had Oiled the couple of cases including a customs case and another case challenging an announcement made by the Appellate Tribunal Inland Revenue (ATIR)-through which it had sustained decision announced by the department’s adjudication pertaining to the show cause notice to M/s Al Catel Lusent Pakistan Limited for outstanding tax recovery.

Through both the references, M/s Al Catel Lusent Pakistan Limited had named Chief Commissioner Inland Revenue, LTU, Assistant Commission Inland Revenue Withholding, LTU, Commissioner Inland Revenue (Appeals), LTU, and Federal of Pakistan through the chairman of Federal Board of Revenue (FBR) as respondent in the case.

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Customs Inspector Naeem to retire on March 20 Thursday December 14, 2017

National Shafqat Niazi assigned look-after charge of pQ Additional collector

ISLAMABAD: Naeem-ul-Haq, a Pakistan Customs Service officer of BS-16, is going to retire from the government service on attaining the age of superannuation.

The officer, presently posted as Inspector at Model Customs Collectorate, Islamabad, will stand retired from the government service on March 20, 2018.

Adeem khan assumes charge as customs Secretary

ISLAMABAD

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ISLAMABAD

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hafqat Ali Khan Niazi, a Pakistan Customs Service officer of BS-19, has been assigned look-after charge of Additional Collector (Port Muhammad Bin Qasim). The officer, presently posted as Additional Collector, Model Customs Collectorate (Exports), Karachi, was assigned to look after the charge of the post of Additional Collector, Model Customs Collectorate Exports (Port Muhammad Bin Qasim), Karachi in addition to his own duties, with immediate effect and till the availability of a regular incumbent. Meanwhile, Federal Board of Revenue (FBR) has suspended a Customs official for a period of three months under government servant rules.

In a notification, the FBR said in exercise of powers conferred under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules 1973, the Competent Authority has placed Ghulam Shabbir Phulpoto, Superintendent, Model Customs Collectorate, Hyderabad.

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customs Inspector humayun to retire on Feb 2 umayun Khan, a Pakistan Customs Service officer of BS-16, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Inspector at Model Customs Collectorate, Peshawar, will stand retired from the government service on February 2, 2018. Meanwhile, Nazir Hussain, a Pakistan Customs Service officer of BS-16, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Inspector at Model Customs Collectorate, (Appraisement), Lahore, will stand retired from the government service on January 1, 2018. –CB Report

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deem Khan, a Pakistan Customs Service ofOicer of BS-19, has assumed charge as Secretary. The ofOicer, in pursuance of Board’s NotiOication No.2876-CI/2017, dated 12.10.2017, relinquished the charge of the post of Additional Director at Directorate General of Internal Audit (Customs), Islamabad with effect from November 6, and took charge of the post of Secretary (BS-19), Federal Board of Revenue (HQ), Islamabad on the same date. Meanwhile, The Federal Board of Revenue has expressed deep regret over the sad demise of Saeed Imam, a Pakistan Customs ofOicer of BS-18. Saeed Imam, last posted as Assistant Director (Audit),

joined the government service on August 23, 1982. The FBR wishes to place on record its appreciation of the dedicated services rendered by

the deceased ofOicer. In expressing its sense of grief at his death, the Board conveys its commiseration to the members of the bereaved family,

praying, ‘’ May his soul rest in eternal peace and may Allah give patience and fortitude to the family members to bear this irreparable loss.’’

custom preventive foils bid to smuggled 3kg gold worth millions of rupees P

KARACHI

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akistan Customs Preventive has foiled a bid to smuggle huge quantity of gold worth million of rupees at the arrival of the Jinnah International Airport (JIAP). According to the details, the higher authority received an authentic information regarding the smuggling of huge quantity of Gold worth millions of rupees through passenger coming from Dubai.

A team was constituted and was instructed to enhance the surveillance as well as to carry out strict checking at both arrival and the departure of the Jinnah International Airport.

On suspicion the team of Customs Preventive deputed at the arrival of JIAP intercepted the passengers who reached Karachi through Emirates Olight No EK602

from Dubai. The Customs ofOicer asked the passengers for their travel documents as well as to get their luggage checked.

During the search of passengers the ofOicer of the Custom Pre-

ventive found three kilograms of gold attached with body worth one crror and Oifteen lac rupees.

The officers of the Custom Preventive has taken the smuggled goods in the custody and cases

has been filed against the apprehended two culprits named Jameel Akhtar and Jameel Qureshi whereas further investigation in underway against the heinous crime.

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MCC AB Section earns Rs528000 more CD during November ISLAMABAD: The Customs Accompanied Baggage (AB) Section of the Model Customs Collectorate (MCC) Islamabad received Rs528000 extra revenue against the assigned revenue collection target of Customs Duty during the month of November Financial Year 2017-18. According to details explained by the official sources of the AB that performance was satisfactory during the month of November FY17-18. Sources added that the AB was allocated a revenue collection target of Rs2.00million as Customs Duty (CD) whereas it generated Rs2.528million of CD. The AB earned Rs1.77million as CD during the same period of previous FY16-17.

pakistan-Australia Jtc agree for enhancing bilateral trade ISLAMABAD

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akistan Australia Joint Trade Committee on underlined the need for find ways and means to enhance bilateral trade among both the countries as current level of trade and investment between the two countries were not commensurate with the existing potential. Consensus to this regard was developed in the 7th session of Pakistan Australia Joint Trade Committee was held at Canberra, Australia, where Pakistani delegation was led by Secretary Ministry of Commerce Mohammad Younus Dagha,and Australian side was led by Ms Kathy Klugman, First Assistant-Secretary, Department of Foreign Affairs and Trade.

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According to a press release issued by the Ministry of Commerce wide ranging of issues including market access to Pakistani goods, trade and investment opportunities in Pakistan and business visa were taken up during the meeting. Secretary Commerce highlighted the trade and investment opportunities in Pakistan emerging in the wake of ChinaPakistan Economic Corridor. He highlighted that Pakistani economy had been growing at a fast pace and the macroeconomic indicators and inward investment into the country provide positive signals for foreign investors. With regard to bilateral trade between Australia and Pakistan, the Secretary Commerce said that Pakistan exports to Australia have not achieved the potential due to tariff differential faced by Pakistani exporters. He argued that products originating from Bangladesh are subject to zero duty because of it being a Least Developing Country.

National

china urges pakistani businessmen to benefit Shanghai economic Free Zone

customs compensates exporters with extra amount of rs.1.00m KARACHI

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he 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 November FY17-18. The collector notified 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, he was added that the Collectorate will paid more than Rs20 million rebates refunds to exporters during month of October Financial Year 2017-18.

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SHANGHAI

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hina has urged Pakistani entrepreneurs to beneOit from the Shanghai Pilot Free Trade Zone (SHFTZ) aimed at opening up new economic opportunities and explore new markets for their products.

BrieOing a group of Pakistani newsmen Director General Bureau of External Communications of SHFTZ Wang Ying on the Economic Free Zone said it was an important part of the China’s One Belt, One Road project.

He said it would have numerous advantages for Pakistan and would not only boost their bilateral economic relations, but also provide an opportunity to the Pakistani businessmen to introduce their products and expand their ventures outside of their borders.

The journalists were on a shortterm training program at the Renmin University, Beijing organized by the Chinese embassy at Islamabad and was aimed at enhancing mutual understanding and exchange between Chinese and Pakistani media.

The economic zone established in 2013 is spread over in an area

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more than 120 km along the golden coast of the East China Sea comprises is touted as opening of a new chapter in China’s opening up and embarking on a new path. It has registered 23,243 companies, 14,860 of them newly registered and 2,342 foreign-funded.

Wang Ying said so far 16 countries from the Central and Eastern Europe have their presence and pointed that special facilities were being extended to foreign investors, besides a one-window operation to

cut down business costs and time.

He said the strong bonds between Pakistan and China can be translated into stronger economic ties with the availability of a modern Free Trade Zone. He said the Pakistani businessmen can boost their trade by utilizing the facilities available and enhance their portfolio. He urged the Pakistani media to highlight the opportunities for Pakistani entrepreneurs who would like to increase their reach beyond the borders.

FBr nominates 20 customs officers of BS-20 for108th NMc

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LAHORE

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ederal Board of Revenue (FBR) has issued list of 20 ofOicers of BS-20 Pakistan Customs Service or equivalent for 108th National Management Course which will commence from February 12, 2018 to June 15, 2018 at National Management College, Lahore, notiOied on Wednesday.

The PCS ofOicers are included: 1) Muhammad Nasir Khan, Member Technical, Customs Appellate Tribunal (Bench-II), Islamabad; 2) Muhammad Asif Marghoob Siddiqui, Collector, Collectorate of

Customs (Adjudication-I), Karachi; 3) Muhammad Zubair Yousfani, project Director for FBR; 4) Faiz Ahmad, Collector, MCC (Preventive), Lahore; 5) Gul Rehman, Collector, MCC Peshawar; 6) Dr Saima Taslim Zehra, Director, Directorate of Intelligence & Investigation-FBR, Lahore; 7) Ms Rabab Sikandar, Director, Directorate of Intelligence & Investigation-FBR, Lahore; 8) Muhammad Sadiq, Collector, Model Customs Collectorate, Faisalabad; 9) Shahnaz Maqbool, Collector, MCC (Appraisement0West), Karachi ;

10) Ms Seema Raza Bokhari, Director General, President’s Secretary (Public), Islamabad; 11) Mirza Mubashir Baig, Director Directorate of Post Clearance Audit, Lahore; 12) Asif Saeed Khan Lughmani, Chief, Legal Wing, FBR (Hq), Islamabad; 13) Muhammad Ali Raza Hanjra, Collector, MCC, Gilgit-Baltistan; 14) Dr Muhammad Saeed Khan Jadoon, Collector, Islamabad; 15) Ashhad Jawwad, Collector, MCC (Appraisement-East), Karachi; 16) Zafar Akhtar, Director, Directorate of Internal Audit (Customs), Lahore;

17) Ch. Muhammad Javed, Collector, MCC (Exports), Customs House, Karachi; 18) Fayyaz Anwar, Director, Directorate of IPR Enforcement (Central), Lahore; 19) Irfan-ur-Rehman Khan, Director, Directorate General of PCA, Islamabad;’ 20) Muhammad Junaid Jalil Khan, Chief (Management Customs), FBR, Islamabad.

FBR further added that willingness/personal information should reach the undersigned latest by December 12, 2017 otherwise next eligible ofOicer shall be nominated for the course.

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Pakistan, Hong Kong ratify tax agreement

HONG KONG:Pakistan and Hong Kong SAR on Monday ratified the agreement on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income.

The agreement was signed on February 17, 2017 after negotiations spreading over six years.

The tax pact will come into force from November 24, 2017, says a press release received here from Hong Kong.

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uS agents intercept boat in canadian banks paying out $14.3b in bonuses in 2017 suspected smuggling attempt OTTAWA

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ederal agents seized a small pleasure craft crowded with 15 Mexican nationals off the coast of Point Loma evening and arrested the driver of the boat on suspicion of smuggling.

Authorities announced Monday that a U.S. Customs and Border Protection crew on patrol in a plane spotted the 23-foot cuddy cabin boat called the Pressure Valve off the coast, about four miles south of Point Loma, and guided the crew of a 39-foot interceptor vessel known as a Midnight Express to it.

With a helicopter providing an overhead spotlight, agents aboard the Midnight Express arrived and stopped the Pressure Valve. The federal agents saw immediately that the boat was overloaded with people and contacted a nearby U.S. Coast

Fuel prices increase in uAe for December 2017 he Ministry of Energy has announced on Tuesday, new petrol prices for December in the UAE. The per litre prices are Super 98 at Dh2.15 (up from Dh2.03); Special 95 at Dh2.04 (from Dh1.92 in November) ; E Plus-91 at Dh1.97 (up from Dh1.85 last month). And diesel price has been fixed at Dh2.20 per litre, an increase from Dh2.11. UAE fuel prices are linked to international crude oil prices. Brent, the global benchmark, surged to above $60 a barrel for the first time in more than two years on October 28, amid enthusiasm that Opec may extend its output deal. UAE has cut up to 10 per cent of their oil exports in the last two months in accordance with the Opec agreement, energy minister Suhail Al Mazroui said on September 25. –CB Report

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Guard vessel. Crew members from a Coast Guard cutter transported the 15 people aboard the vessel to the dock at the Ballast Point. U.S. Border Patrol agents took the 15 people to the San Ysidro port of entry, where they were turned over to Customs and Border Protection ofOicers.

Among the 15 people were eight men, one 15-year-old boy and six

women, including one who was pregnant. All were determined to be Mexican nationals without legal status to enter the U.S. None required immediate medical attention, and all appeared to be in good health.

Agents identiOied the suspected driver of the vessel, who will face federal charges related to the smuggling attempt, authorities said.

uk and eu plan crackdown amid crime and tax evasion fears

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he UK and other EU governments are planning a crackdown on bitcoin amid growing concerns that the digital currency is being used for money laundering and tax evasion. The Treasury plans to regulate bitcoin and other cryptocurrencies to bring them in line with anti-money laundering and counter-terrorism Oinancial legislation. Traders will be forced to disclose their identities, ending the

anonymity that has made the currency attractive for drug dealing and other illegal activities. Under the EUwide plan, online platforms where bitcoins are traded will be required to carry out due diligence on customers and report suspicious transactions. The UK government is negotiating amendments to the anti-money-laundering directive to ensure Oirms’ activities are overseen by national authorities. –CB Report

he country’s six biggest lenders set aside $14.3-billion for variable compensation up 11 per cent from 2016 as a record year in trading and investment banking swelled bonus pools.

That’s the biggest jump since 2014 and stands in contrast to last year, when a 3.4 per cent increase was the lowest since 2010.

“The banks have done well,” said Bill Vlaad, president of Vlaad & Co., a Bay Street recruitment Oirm that monitors compensation trends. “But just because they had one good year doesn’t mean they’re going to give it all away.” National Bank of Canada and Royal Bank of Canada had the biggest increase in performancebased pay from the year earlier, while Bank of Nova Scotia had the smallest, according to disclosures.

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Variable compensation reOlects the amount reserved, not paid out, and doesn’t include base salaries or other compensation.

The nation’s lenders pay bonuses based on performance, with a lion’s share going to capital-markets employees including investment bankers, traders and analysts.

Bonuses are typically distributed this month. Canada’s banks set new benchmarks in their securities operations in the Oiscal year ended Oct. 31, helping the group reach a record $25.2-billion revenue from capital markets. The six lenders collectively had $5.12-billion in investment-banking fees, up 9.9 per cent from last year.

Revenue from trading also soared to a new peak of $11.1-billion, a 1.8 per cent increase. Bankers worked hard at strengthening their domestic and cross-border businesses in the last year, and it’s paying off, Vlaad said.

Still, banks are being conservative in payouts this year to “keep the powder dry” for what they anticipate may be a challenging 2018, he said.

Australia’s Q3 gDp rises 0.6%: Nomura ustralia’s Q3 GDP rose by 0.6% q-o-q, 2.8% y-o-y, below consensus (0.7% q-o-q) and Nomura’s forecast (0.8% q-o-q), but in line with RBA expectations, points out the research team at Nomura.

“Relative to our own forecast, private consumption (0.1% q-o-q) was very soft, and some of the industrybased growth numbers printed below those suggested by partial data earlier in the week.” “Our broad outlook remains for respectable, trendlike growth, with some encouraging signs, but with headwinds from a weary consumer and lower dwelling construction. These trends were cer-

tainly evident in today’s release. On the positives, we note an encouraging rise in business investment, rising export volumes, higher capital goods imports and growth in Western Australia. Against this, GDP per hour worked and GDP per capita were weak (0.0% q-o-q and 0.2% qo-q, respectively), while consumer spending was very soft, particularly in discretionary areas. Moreover, the household savings rate is now 3.2%, from 4.6% in the prior national accounts (released with Q2 data), so the consumer has less of a buffer to support spending in a low-wage environment.” –CB Report

ceylinco Life’s 9 month pBt up 53% to rs. 2.5 Billion

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COLOMBO

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eylinco Life has reported exceptionally strong proOit growth for the nine months ending 30th September 2017, with pre-tax proOit up 53 per cent to Rs 2.5 billion and net proOit growing 47 per cent to Rs 2 billion.

Sri Lanka’s life insurance leader has recorded net income of Rs 18.7 billion for the period, an increase of 11 per cent, with premium income accounting for Rs 11.48 billion and investment income contributing Rs 7.24 billion. Investment income grew by a healthy 21 per cent in the review period, reOlecting the success of the investment strategies implemented by the company, with an in-

vestment portfolio that stood at Rs 94.11billion as at 30th September 2017, up 17 per cent over the nine months. Total assets of Ceylinco Life improved by 15.4 per cent to Rs 111.3 billion at the end of the period reviewed. Basic earnings per share for the nine months was Rs 40.59, up 47 per cent. The company’s Life Fund, which totalled Rs 81.8 billion in May this year, reached Rs 85.2 billion as at

30thSeptember 2017. The Life Fund’s growth over the nine months reviewed was Rs 7.3 billion or 9 per cent. “Our performance in 2017 has been noteworthy by any standards,” Ceylinco Life Managing Director Mr R. Renganathan commented. “We started the year with a strong Oirst quarter and have maintained the momentum through an unwavering focus on operational fundamentals.

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Six ships take birth at Port Qasim KARACHI: Six ships SMC Rachale, MSC Albany, Newark, Al-Jassasiya, Straum and Glorious carrying Containers, LNG, Palm Oil and Diesel oil were allotted berths at Qasim International Container Terminal, Engro Elengy Terminal, Liquid Cargo Terminal and FOTCO Oil Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA). Meanwhile another Container ship APL Hawaii also arrived at outer anchorage of Port Qasim on Tuesday morning. Berth occupancy remained on high side at the port at seventy one percent on Monday where a total of twelve ships namely, Vessels MSC Rachale, MSC Albany, Newark, Marvel, Trade Will, Medi Chiba, Kasman, Ever Rich-6, White Purl, Al-Jassasiya.

Indian ports cargo traffic up 3.46 percent or the period from April- November 2017, nine Ports (Kolkata (including Haldia), Paradip, Visakhapatnam, Chennai, Cochin, New Mangalore, Mumbai, JNPT and Kandla) have registered positive growth in traffic. The highest growth was registered by Cochin Port (17.93%), followed by Paradip (13.13%), Kolkata [incl. Haldia] (12.64%), New Mangalore (7.07%) and JNPT (5.69%). Cochin Port growth was mainly due to increase in traffic of POL (25.15%) and Containers (10.46%). There was decrease in traffic of other Liquids (-26.24%), Fertilizer Raw Materials (-23.33%), Finished Fertilizers (-11.76%) and other Misc. Cargo (-1.19%). In Kolkata Port, overall growth was 12.64%.

Kolkata Dock System (KDS) registered traffic growth of 4.33%. where Haldia Dock Complex (HDC) registered posi-

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tive growth of 16.70%. During the period April to November 2017, Kandla Port handled the highest volume of traffic i.e. 72.03 Million tonnes (16.38% share), followed by Paradip with 64.97 Million Tonnes (14.78% share), JNPT with 43.26 Million Tonnes (9.84% share), Mumbai with 42.33 Million Tonnes (9.63% share), and Visakhapatnam with 40.95 Million Tonnes (9.31% share). Together, these five ports handled around 60% of Major Port Traffic. The Ministry of Shipping has taken significant strides in the last three years to make India’s presence felt on the global maritime map. Various steps have been taken to provide a robust legislative framework, create capacities, impart skills to people, and create an enabling business environment for growth of the maritime sector in the country. –CB Report

Ports & Shipping

Asian ship operators take interest in smart ports

global container shipping to pass 200m teu in 2017 he fastest growing regions for September were North America up 12.6%, Latin America up 11.1%, and China up 10.3%. Europe came in as the slowest with 4.4% growth. Drewry’s latest five-year global container port demand forecast is 4.3% per annum, with projected port capacity expansion at 2.7% per annum. Its assessment showed that the global index fell in September 2017, however, it still increased by 10 points since September 2016. The forecast said: “Ignoring the monthly fluctuations, the trend has been relentlessly positive in 2017, following on from a more muted growth pattern last year.” In a recent analysis of the global shipping market in 2018, Drewry warned that the cautious approach taken by global shipping in earlier years had meant that “lagging trade” had affected figures for 2017, but that economies were going back to doing business. –CB Report

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SHANGHAI

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hinese crane manufacturer ZPMC has gathered some of the largest ports and shipping companies at a forum demoing smart terminal solutions in Shanghai. Forum attendees not only saw presentations on smart terminal solutions, but also visited Shanghai Yangshan Phase IV Automated Container Terminal, the world’s largest single automated container terminal, co-built by ZPMC. Of the 400 attending the Global Smart Terminal Solutions Forum, there were more than 120 port users and 28 of ZPMC’s partners.

Attendees represented port operating entites such as Port of Singapore Authority, Hutchison Port Holdings, China Merchants Port Holdings and Shanghai International Port Group.

Asian shipping companies at the forum included China COSCO Shipping Group, OOCL, Evergreen Ma-

Thursday December 14, 2017

rine and Wan Hai Lines’s Port Operating Company. Other international shipping companies attending included MSK and Mediterranean Shipping Company.

During the Forum, ZPMC showed off its concept on R&D for smart terminals as well as its capabilities in providing One-Stop smart terminal solutions to global customers.

Huang Qingfeng, President and

Deputy Secretary of the Party Committee of ZPMC, said that because of China’s Belt and Road foreign investment initiative, there were more new terminals under construction and old terminals being upgraded. Building a new generation of terminals and achieving intelligent terminals has become an irresistible trend in the ports industry, he said.

essar ports posts 20% rise in cargo handling NEW YORK

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ssar Ports BSE 0.15 %’ Bulk Terminal in Paradip has achieved an average productivity of 90,000 tonnes per day, registering an over 20 per cent rise in cargo handling so far this Oiscal.

The CQ3 terminal at Paradip Port, operated by Essar Bulk Terminal Paradip Limited (EBTPL), handled 2.8 MMTPA till November this year as against 2.3 MMTPA during the same period a year ago, a senior Essar Ports ofOicial said.

The terminal at Paradip Port has been turning around large parcels of load in “record time” since commissioning, the ofOicial said.

The system is able to load vessels with turnaround under two days, he said.

EBTPL, an Essar Ports company,

has also received appreciation from Paradip Port Trust for loading 100,000 tonnes equivalent in a day, with a peak load rate of 4,500 tonnes per hour (TPH), the “highest loading rate achieved till date in Paradip Port for iron ore and pellets”, he said. EBTPL was awarded 15-year license in 2010 to mechanise and operate the CQ3 terminal from Paradip Port under the mechanisation programme undertaken

by Shipping Ministry.

The company increased capacity of the conventional (manual) berth from 4 MTPA to 16 MTPA at a cost of Rs 565 crore. The ofOicial said the terminal is used extensively to load pellets produced at Essar Steel BSE 0.41 %’s 6-million tonne Paradip plant onto vessels bound for its Hazira Steel Complex, where the pellets are used in the steelmaking process. This has helped signiOicantly cut down environmental pol-

lution caused by road transportation, he said. Meanwhile, The Port of Toledo is one of the largest on the Great Lakes, and business is booming this year. Grain, aluminum, iron ore and petroleum coke are just some of the products moving in and out of Toledo. A study shows that about 7,000 jobs are tied to the Port of Toledo, and it has a nearly one billion dollar economic impact on the region. More iron ore moves through the port than any other commodity, and this year’s iron ore numbers are up considerably from last year. Joe Cappel is the Vice President of Business Development at The Toledo-Lucas County Port Authority, “When you see a lot of ore boats in Toledo, that’s a good sign for the domestic production of steel.” There have been a lot of ore boats in Toledo this year. Last year freighters hauled about 1 million tons of iron ore to Toledo. This year

that number has already hit about 3 million tons, and the season isn’t over yet. Paul Toth is the President and CEO of the port, and he says it’s not just iron ore shipments that are up,”We’ve seen an increase in virtually everything this year.” Cappel says the numbers are encouraging for the entire region,”In normal years when something is way up, other things are down. This year everything seems to be pretty far up. We have worked hard to strike a balance at the port through the years Our imports are balanced with our exports. Our domestic shipments are balanced with our shipments to and from Canada. It is great to be able to handle so many commodities and ship them to so many places all over the globe.” While the port’s entire portfolio of commodities is doing well, the iron ore numbers are about to get even bigger.

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State Bank eases foreign exchange regulations for exporters LAHORE: In the wake of changing global trade practices and to facilitate exporters, the State Bank of Pakistan has relaxed its foreign exchange regulations, allowing exporters to directly dispatch transport documents to the buyers abroad against shipments of up to $100,000/- or equivalent. The authorized dealers (banks) have been advised to above effect vide F.E. Circular No. 11 issued on Monday by the State Bank of Pakistan. The development is expected to provide manifold benefits to the local exporters including reducing the cost of doing business, efficient processing of export documents and improving competitiveness of Pakistani exports in the international market.

Thursday December 14, 2017

Business

pM chairs meeting to review incentives for It ISLAMABAD

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he Prime Minister of Pakistan, Shahid Khaqan Abbasi chaired a meeting to review Oiscal and non-Oiscal incentives for IT sector of the country. Minister of State for IT & Telecom, Ms. Anusha Rahman Khan, Secretary (IT) Mr. Rizwan Bahshir Khan and other senior MoIT ofOicials were also present in the meeting said a press release.

A detailed Presentation was given by the Minister of State for IT & Telecom on existing IT/ITeS Exports and domestic IT business potential in terms of industry revenue. The meeting acknowledged that IT/ITeS in-

IrSA releases 75,200 cusecs water KARACHI

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dustry is currently a Olourishing sector in comparison to other sectors of the economy. The meeting was informed about the lack of incentives and challenges faced by the IT/ITeS

rs3612.280 million released for petroleum sector in five months

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he Indus River System Authority (IRSA) released 75,200 cusecs water from various rim stations with inflow of 42,600 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1440.31 feet, which was 60.31 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 23,400 cusecs and outflow as 35,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1118.05 feet.

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industry in comparison to the competing & neighboring economies. Issues like high taxation on IT/ITeS companies, supply of quality IT Human Resource and limited domestic

opportunities were also discussed in the meeting. In this regard, a competitive analysis of Pakistan’s IT industry in comparison to other important IT destinations of the region like Philippines, China, Bangladesh and India was also shared. Minister of State for IT & Telecom presented number of proposals to boost IT/ITeS exports including both Oiscal and nonOiscal incentives such as extension of Zero rated income tax regime on IT/ITeS exports and removal of other local taxes. The meeting was informed that Special Economic Zones (SEZs) of IT/ITeS sector are a good opportunity to boost country’s IT/ITeS exports. PM was informed that IT Export got doubled during last 4 years. Due to effective policy measures, Pakistan is being ranked at number 3 in freelancing.

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ISLAMABAD

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he government has released Rs 3612.280 million for the Petroleum and Natural Resources Division under the Public Sector Development Programme (PSDP 2017-18) during Oirst Oive months of the current Oiscal year against the total allocation of Rs 5490.268 million.

According to the ofOicial data, Rs 1.798 million, out of Rs 8.992 million allocation,have been released for ex-

ploration and evaluation of metallic minerals in Bela and Uthal areas of district Lasbella, Balochistan. Funds amounting to around Rs 3609.784 million have been provided for supply of gas to various localities in Baddhomali Town of district Narowal, NA-112 of district Sialkot, NA-129 of district Lahore, NA-132 of district Sheikhupura, NA-04 Peshawar, NA30 and NA-31 of Swat and Shangla besides PK-27 of district Mardan, NA-18 of district Abbottabad, Union Councils Darya Gali and Nimbal of Tehsil Murree, localities of Kahuta, NA-60 of district Chakwal, NA-87 of

district Jhang, NA-163 of district Sahiwal, NA-146 of distict Okara and NA-131 of district Sheikhupura, while Rs 0.698 million for exploration of Tertiary Coal in Punjab Central Salt Range. This year, the government has earmarked Rs 415.807 million for acquisition of four drilling rigs with accessories for the Geological Survey of Pakistan, Rs 37.977 million for appraisal of newly discovered coal resources in Badin and its adjoining areas of Southern Sindh, Rs 3.492 million for exploration of tertiary coal in Central Salt Range of Punjab.

MoIt to secure rs25b annually under IgNIte ISLAMABAD

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ational Technology Fund under Ministry of Information Technology and Telecommunication aims to reduce Unaccounted-for-Gas (UFG) down to 10% that equals 25 billion per annum. IT Ministry will be gaining this profit through the project ‘Energy Watch; preventing pilferage, saving cost of inclining resource of Gas’ to benefit domestic users. Project manager Dr Gul Muhammad said, main hurdle in this project was the installation of the sensors for underground networking of pipelines and provision of energy to those sensors, which now has been resolved. He added that the through this step the cost of the project will be reduced. Dr Gul said according to the estimate Sui Northern Gas Pipelines Limited (SNGPL) will recover its implementation cost for these installations around three years. “It will be profitable for SNGPL for next five to ten years’, he explained. “Through this project, we are targeting to address each one of these irregularity, with an aim to reduce UFG down”, he said.

We have developed a sensor based network for real time monitoring and data acquisition of Gas Distribution network, for possible malicious activities and theft detection.

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In-service training program for excise Dept officials launched PESHAWAR

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he Excise and Taxation Department formally launched the Oirst ever In-Service Training Program at Training Resource Centre (TRC) for the ofOicers and staff of the Excise Department.

Mian Jamsheduddin Kakakhail Provincial Minister for Excise & Taxation inaugurated the state of

the art new training facility TRC. The event was also attended by Mr Sebastian Ernst, First Secretary Political Affairs at the German Embassy and Christian Kapfensteiner, head of GiZ support to Local Governance program as well as ranking officers from German Embassy and GiZ besides others.

The specialized training program is an important milestone for the department which is trying to modernize its operations to meet the

public expectations.

With almost, 1400 staff posted in over 30 regional ofOices across the province, replacing redundant work practices with modern tools and techniques has proved to be a difOicult hurdle to overcome.

One of the biggest challenges has been the lack of capacity of staff who seldom undergo any training throughout their career. The In-Service Training Program will bridge this incapacitating gap by providing

training opportunity to 1000 existing staff members on core competencies relevant to their jobs.

Mian Jamsheduddin Kakakhail said it is amongst the objectives of the Provincial Government to improve the quality of service to its citizens. The Excise Department was an important organization when it came to providing services to the general public and through this program, the skills of its staff will be updated to facilitate rolling out of

new and innovative services.

The minister lauded the initiative of the department saying, no nation can progress without investing in its human resource. He appreciated the vital support of GiZ by establishing a modern Training Resource Centre and designing of customized training program according to our needs. Sebastian Ernst from the German Embassy highlighted the partnership between Pakistan and Germany.

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BMP vows to set up FPCCI regional offices in Multan & Sukkur KARACHI: The presidential Candidate of the Businessmen Panel (BMP) for the upcoming FPCCI elections, Haji Ghulam Ali, has said that if elected in FPCCI 2018 elections, the group’s first priority would be to set up FPCCI regional office in Multan and Sukkur.

This, he added, would enable the business of community of South Punjab and Interior Sindh for close liaison conveniently with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on important matters. Ghulam Ali said ‘we are determined to close coordination with the political parties of the country on the subject of economy so that long term policies may flourish accordingly, because we have to understand that without effective economy no country will be on take off position to achieve the required targets.

hccI rejects heSco’s load shedding policy

Thursday December 14, 2017

Chambers

traders threaten to go on strike if rent control act not passed soon

HYDERABAD

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he Senior Vice President Hyderabad Chamber of Commerce and Industry Turab Ali Khoja has rejected the load shedding policy of Hyderabad Electric Supply Company adding that such plan is adversely affecting the trade and business activities in Hyderabad. In a statement issued here on Monday, he said that HESCO’s four to twelve hours load shedding policy on the basis of line losses had deprived those customers of their rights who were regularly paying their electricity bills. The policy is badly affecting the home based industries as well as trade and business activities, he said and added that the industrial

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areas as well as Zam Zam Industrial Zone have also been brought into the net of load shedding by HESCO management. He said that business community of Hyderabad is playing vital role in economic development and provision of job opportunities to jobless people and the current load shedding policy of HESCO could cause economic instability in the Hyderabad.

He claimed that current load shedding policy would also badly affect the recovery of outstanding dues of HESCO therefore it is the need that the management concerned should overcome the issues of excessive billing and detection, activate its employees to unearth illegal action rather than testing the temperament of genuine customers. He said that wrong policy of HESCO management is causing damages to industrial development therefore HCCI has no other way except to reject this policy.

ISLAMABAD

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uhammad Naveed, Senior Vice President, Islamabad Chamber of Commerce and Industry, Ajmal Baloch President Markazi Anjuman-e-Tijran Pakistan, Kashif Chaudhry of Tajir Ittehad, Khalid Chaudhry Secretary Traders Action Committee, Islamabad, Imran Bukhari Senior Vice President Islamabad Chamber of Small Traders, Khursheed Qureshi President Jamiat ul Qureshi and Ch. Nadeem of PTI Traders Wing addressed a joint press conference at Islamabad Press Club and said that traders were feeling in secure due to absence of a balanced rent control act in Islamabad.

They said that when a trader starts business, owner enters into 2 years rent agreement with him.

However, when the business runs successfully, the owner demands manifold increase in rent due to which the trader was blackmailed and he had to pay exorbitant rent, which was unjustiOied. They said MNA Mian Abdul Manan and MNA

from Islamabad Asad Umar had presented a private bill of rent control act in the National Assembly, which was approved by the concerned Standing Committee and the ICT Administration, but it has not been passed into a law as yet. They appealed to the Prime Minister of Pakistan Shahid Khaqan Abbasi and Federal Law Minister Barister Zafarullah Khan to arrange urgent passage of amended rent control bill from the Parliament. They warned

that if the bill was not passed into rent law, the traders of Islamabad would have no option except for launching a strong protest. For this purpose, protest would be started in various markets and banners would be displayed while on Dec: 19, 2017, all markets of Islamabad would observe partial shutter down strike from 2pm to 4pm and traders of every market would stage sit in at their near Chowks. If still the demand was not met, traders would

uBg poised to sweep FpccI elections LAHORE

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nited Business Group (UBG) is poised to sweep the apex body’s elections fourth time consecutively with majority votes as the opposition only fielded six candidates out of 13 which shows the popularity of the UBG among the business community unrivaled.

Chairing central core committee meeting here to review the progress of the nationwide electioneering for Federation of Pakistan Chamber of Commerce and Industry annual election for the year 2018, Central Chairman UBG Iftikhar Ali Malik said over 90 percent of the business community supports the UBG because of their unprecedented

services and interest in timely help addressing the problems confronted by the business community across the country.

He said, “With untiring efforts of Mian Muhammad Adress, provincial head of UBG, we will bag all votes in 20 chambers in Punjab as the opposition could field a single candidate against them from the most populated province of the country.”Mian Adrees informed the meeting that all the 20 chambers throughout the province have assured to support the UBG candidates unconditionally. He said the opposition has miserably failed to win the support from the business community as it has no clear agenda and manifesto to resolve the issues of the traders. He said that UBG’s manifesto is to

address traders’ issues and to put forward recommendations for economic reform to the government. Abdul Rauf Alam, UBG Chairman FATA and Islamabad, informed that major chunk of chambers of his area will cast votes in favour of UBG candidates while Senator Ilyas Bilour, Chairman UBG KPK province, informed that 70 per cent chambers of his province announced to elect UBG candidates while Khalid Tawab, UBG Chief Sindh, disclosed that 80 per cent of total chambers from Sindh held assurance to elect UBG panel. Khalid, UBH leader from Quetta, told the meeting that almost all chambers from Balochistan will live upto the aspirations of UBG in the forthcoming annual elections of the federation.

announce next course of action on December 21, 2017 and traders could announce complete shutter down and Dharna in front of Parliamant House. They appealed to the Prime Minister of Pakistan Shahid Khaqan Abbasi and Interior Minister Ahsan Iqbal that till the passage of new rent law for Islamabad, orders should be issued to stop the the evictions of all traders including the 48 traders against whom eviction orders have been issued.

MccI president calls for keeping environment clean resident Multan Chamber of Commerce and Industry (MCCI) Malik Israr Ahmad Awan Monday urged people particularly tourists to try to keep the environment clean during visits to hilly areas to protect mountains. Speaking at a function held in line with observance of International Mountain Day at MCCI, he said that almost half of the world population depend on mountains for meeting their needs including water, food. The ceremony was organised in the honour of the bike-riders including two women, who had reached Multan as part of their Lahore-Fort Munro trip in connection with the International Mountain Day. –CB Report

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Customs Tribunal directs petitioners to submit record of cases ISLAMABAD: Customs Appellate Tribunal’s Member Technical, Muhammad Nasir Khan on directed the appellants to submit record of the cases before the next date of hearing. The bench was hearing the cases filed by appellants, Zamanul Haq and M/s Indus Laboratory.

The appellants had challenged MCC decision relating to the import of machinery. The department had seized the imported items owing to queries about their classification. The appellants had prayed the tribunal to direct the department to release the items.

Thursday, December 14, 2017

CUSTOMS BULLETIN

customs exports recovers rs 16.34m from four defaulter companies KARACHI wAQAr AhMeD ANSArI www.customsbulletin.com

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he Customs Exports has recovered the evaded taxes and duties amounting to Rs 16.34 million from four defaulters companies which were issued with notices to pay outstanding dues.

Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Khokhar Embroidery availed undue beneOits and concessions by importing different consignments and misusing the SRO 562. The company founded involved in a tax evasion of Rs 4.23 million.

After detecting tax evasion, the Customs Exports issued them with Oinal notice to deposit the evaded amount within seven days. After receiving the notice, the management of the M/s Khokhar Embroidery deposited the evaded amount in the ofOicial account of the Customs Exports.

On the other hand, the management of the M/s Nasir Chemicals (Buffer Zone Karachi) also cleared Rs 6.25 million of taxes and duties. Sources said the M/s Nasir Chemicals also availed undue benefits and concessions and avoided paying taxes according to the customs bylaws.

The Customs Exports authorities issued them with a show cause notice. After receiving the notice, the management of the M/s Nasir Chemicals deposited the evaded

amount of taxes.

Other defaulter company M/s Atif Textile and Export deposited Rs 2.36 million against the final notice No: 232/2017 issued on 16

October 2017.

Sources said the Customs Exports also recovered Rs 3.50 million from M/s Unzila Fabrics. The company availed undue beneOits and

concessions by importing the consignments of liquid and powder form chemicals. After receiving the notice, the management of the M/s Unzila Fabrics cleared the amount.

FBr’s third slab of FeD leads to enhanced tobacco consumption ISLAMABAD

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he Federal Board of Revenue (FBR) introduction of third slab of the federal excise duty has increased consumption of tobacco in the country.

The Senate Standing Committee of National Health Services was briefed on how the introduction of third tier by the FBR actually ben-

eOited the multinational companies. The Project Manager of Tobacco Control Cell Muhammad Javed said that Pakistan Tobacco Company (PTC) and Philip Morris had presented conOlicting Oigures ofOicially due to illicit trade of cigarettes. However, he added, before introduction of the 3rd slab in May, the companies earned proOits due to increased consumption .

The prices of cigarettes brands were increased in 2013-16 in two slabs as Pakistan was signatory of World Health Organisation (WHO) Framework Convention on Tobacco Control. However, in May,

the FBR introduced the third slab after the multinational companies reported decline in their production and the government collected less revenue from the industry.

The rate of federal excise duty on the Oirst tier of cigarettes is Rs3705 per 1,000 cigarettes while Rs1,649 per 1,000 cigarettes in the 2nd tier. As per the FBR documents, gradual increase in the FED on cigarettes took prices to a point where the legitimate industry could not absorb further hike. As a result, volume of the legitimate industry was captured by low-quality and non-duty-paid cigarettes,

which also resulted in substantial decline in the government revenue. Before introduction of the third slab, revenue from tobacco industry stood at Rs88.40 billion in 2013-14, Rs102.88 billion in 201415, Rs114.19 billion in 2015-16 and Rs83.69 billion in 2016-17.

The FBR documents reveal that to tackle the menace of illicit, nonduty-paid cigarettes, a third tier was introduced under which an FED of Rs800 was payable per thousand cigarettes, i.e. Rs16 per pack of twenty cigarettes with sales tax at approximately Rs6.98 per pack. This third tier enabled

Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by (Ibne Hassan Offset Printing Press, Shop No. 33 to 36 , Hockey Stadium, Karachi).

the legitimate cigarette industry to price their lowest brands at approximately Rs47 to Rs48 per pack of twenty cigarettes.

Meanwhile, the FBR documents further reveal that after introduction of the third slab, FED payments by two leading cigarette manufacturers improved, the companies holding 96 per cent share in legitimate cigarette industry.

The net payment of sales tax and FED increased by approximately eleven per cent from Rs20,404 million to Rs22,623 million during the corresponding year, said the documents.