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Karachi, Fri December 15, 2017

SIALKOT

ZAFAR MALIK

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ustoms Dry Port Ahmed Rauf has urged the Gujrat based traders, industrialists and businessmen to prefer doing their businesses through their neighbouring Sialkot Dry Port Trust(SDPT), as this dry port could help to jazz up the pace of trade and business activities in Pakistan’s Sirst ever “Golden Export Triangle” comprising on Sialkot, Gujrat and Gujranwala districts as well, besides, opening the new vistas of socio-economic and human development there as well. He stated this while addressing an important meeting of the local indus-

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trialists and businessmen held at Gujrat Chamber of Commerce and Industry here. Collector Customs added that the Sialkot Dry Port Trust (SDPT) was providing the international standard one-window operational facilities. Collector added that the rebate-related problems of the exporters were also being resolved amicably as well, saying that the government was making all out sincere efforts to ensure the early economical stability of the country as well. Deputy Commissioner (Imports) Sialkot Dry Port Trust(SDPT) Asfand Yar Khan, President Gujrat Chamber of Commerce and Industry (GCCI) Ali Ansar Ghuman and other senior officials also attended this meeting.

MCC Islamabad allocated Rs3537.84m of revenue target for 2Q 2017-18

Valuation of natural & Alkalized Cocoa Powder revised

Tax Ombudsman decides appeal of Rs12m S ales Tax refund

CPEC routes to connect difference regions: President

Customs Export recovers Rs 14.11 million from different companies

MCC Islamabad has been assigned a revenue collection target of Rs3537.84m | See pAge 02 |

DG Valuation has revised the customs value of Natural and Alkalized Cocoa | See pAge 03 |

FTO has disposed of an appeal filed by Ali & Co against the RTO-II Lahore | See pAge 04 |

President said the road network under CPEC would soon be completed | See pAge 11 |

Customs Exports has sent a final notice to M/s Sarfaraz Textile and Export | See pAge 16 |

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FBR audits Telenorâ&#x20AC;&#x2122;s withholding tax Friday, December 15, 2017

ISLAMABAD: Federal Board of Revenue (FBR) has audited withholding tax of Telenor Pakistan (Pvt) Limited to determine the deduction and deposit by the mobile phone service provider company. According to a circular issued by the FBR, the board constituted a team in this regard. It said that a detailed discussion was held with Islamabad Large Taxpayers Unit (LTU) Commissioner Shakeel Kasana and the following team had been constituted, with the approval of the competent authority to attend meeting with Telenor personnel on December.

Islamabad

Mcc Islamabad allocated Rs3537.84m of revenue target for 2nd Quarter 2017-18

ISLAMABAD

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tARIQ DeRYA

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he Federal Board of Revenue has moved a summary before the Economic Coordination Committee (ECC) of the Cabinet for rationalising regulatory duty (RD) on several items including generators. On the demand of both treasury and opposition benches belonging to Parliament had recommended the FBR for rationalising RD on several items after taking concerned stakeholders into confidence. There has been growing demand of rationalising RD on generators. The RD would be imposed at the rate of Rs4669 per metric ton on the import of LPG falling under Pakistan Customs Tariff (PCT) heading 2711.1910. The estimated revenue impact of this revenue measure during the remaining seven months (December to June) comes to Rs1.5 billion approximately. The LPG classifiable under PCT code 2711.1910 is currently exempt from the customs duty under Fifth Schedule to the Customs Act, 1969. During FY 2016-17, a total quantity of 481,512 MT and during current financial year (July-October, 2017) a quantity of 190,680 MT has been imported.

he Model Customs Collectorate Islamabad has been assigned a revenue collection target of Rs3537.84million of all duties and taxes for 2nd Quarter Financial Year 2017-18. According to details given by Saeed Khan Jadoon, Collector Model Customs Collectorate (MCC) Islamabad, that the Collectorate will surpass the allocated revenue target for 2nd Quarter (October to December) Financial Year (FY) 2017-18. He told CT that the Customs Collectorate Islamabad has already earned surplus revenue during the 1st Quarter (July to September) FY17-18 under all the heads. He further told the correspondent that the collectorate was earmarked a proportional revenue target of Rs251.77million for the first week of December FY17-18 while it received Rs288.23million under all the heads. So the collectorate earned Rs36.46million extra revenue against an assigned proportional revenue target for the first week of current month under all the heads. Telling about the revenue details of the Sirst two months of 2nd Quarter FY17-18, Saeed Khan Jadoon added that, during the month of November FY17-18, the Islamabad

FBR moves summary before ecc for rationalising RD

Collectorate was allocated a revenue collection target of Rs1246.21million whereas the collectorate generated Rs1521.28million as all duties and taxes. The collectorate got Rs275.07million more revenue than an earmarked revenue target for the month of November FY17-18 under all the heads while it showed 122.07%

achievement against an allocated revenue collection target for the month of November under the same heads. The Collector MCC Islamabad told Customs Today that, during the month of October FY1718, the collectorate was assigned Rs990.84million under all the heads whereas it received Rs1692.84million under the same heads against an

earmarked revenue target. The collectorate generated an extra revenue of Rs702.00million under all the heads against the assigned revenue target for the month of November FY17-18. He notiSied CT that the collectorate showed 170.85% growth against an allocated revenue collection target for the month of October FY17-18 under the same heads.

Ihc reserves verdict of case filed against M/s Aftab traders

ISLAMABAD

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slamabad High Court on reserved decision on a customs matter involving M/s Aftab Traders and Model Collectorate of Customs. IHC bench comprising of Justice Athar Minallah heard the matter. Earlier the bench had dated in ofSice after counsels asked for time, demanded an adjournment of two weeks. Though the bench only ad-

journed the matter for a week. Collector Customs had Siled the case against M/s Aftab Traders. Meanwhile the bench also dated in ofSice hearing of cases submitted by M/s Pakistan Tobacco Company Limited. The bench issued notices to parties to ensure their presence before the court and dated in ofSice hearing. M/s Pakistan Tobacco Company Limited had Siled the reference in which the company had challenged a show cause notice issued by the Large Taxpayers Unit, Islamabad.

M/s Pakistan Tobacco Company Limited had contested show cause notices issued by the field offices of Federal Board of Revenue. According to details, M/s Pakistan Tobacco Company Limited had challenged recovery of issued to it in head of outstanding sales tax by the LTU, Islamabad. M/s Pakistan Tobacco Company Limited had submitted the department had issued the demand for the tax year 2010 in head of sales tax.

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SHC adjourns hearing of dozens of petitions against regulatory duty KARACHI: The Sindh High Court has adjourned hearing of dozens of petitions pertaining to imposition of regulatory duty (RD) till Dec. The SHC bench, comprising Justice Munib Akhtar and Justice Omar Sial, adjourned hearing after counsel for FBR Kafeel A Abbasi and Additional Attorney General Salman Talibuddin informed the bench that Member, Legal of FBR would address the court on the law points. A senior advocate from Franklin Law Associates appearing for a number of petitioners in rebuttal today said petitioner rely on judgment in Mustafa Imex case where in court has ruled that only Parliament or cabinet can impose a new tax.

Shc orders customs to release 39 construction vehicles

Friday December 15, 2017

Karachi

Valuation of natural & Alkalized cocoa powder revised

KARACHI

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he Sindh High Court has ordered release of 39 construction vehicles including dumpers, mixer trucks and others. The bench, hearing two separate identical petitions, heard Ms Dil Khurram Shaheen advocate, counsel for petitioner and counsel representing the customs department. The vehicles were detained for being imported in violation of para 9 of the Import Policy Order (IPO) 2013. The counsel for petitioner submitted that besides suffering from heavy demurrage, petitioner Ehsanullah was sustaining losses due to hampered construction activity.

ReAp delegation visits Sri Lanka KARACHI

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ice Exporters Association of Pakistan’s high profile trade delegation is on visit to Sri Lanka for promoting and marketing of Pakistani rice in Sri Lanka.This delegation comprises leading rice exporters as well as small and medium level rice exporters, said a press release issued. During their visit, the delegation would have meetings with concerned Ministries oﬃcials as well as the oﬃcials of Ceylon Chamber of Commerce and National Chamber of Commerce and leading rice importers. The delegation had a meeting with Chairman, Cooperative Wholesale Establishment (CWE) Muhammad Rizwan Hameem, which is the state body responsible for the procurement of rice from various origins. The CWE also issues tenders for the procurement of rice.

KARACHI

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arlier, the customs values of Natural and Alkalized Cocoa Powder were determined vide Valuation Ruling No. 619/2013 dated 10-12-20 13. There were several representations from commercial importers as well as from Pakistan Biscuit and Confectionary Manufacturers Association wherein they claimed that value of the subject item needs to be realigned with international values which have considerably gone down over the years. They requested to determine the applicable customs values afresh in accordance with the trend of values in the international markets, therefore, this Directorate General initiated an exercise for determination of the Customs Values of Natural and Alkalized Cocoa Powder in terms of Section 25-A of the Customs Act, 1969. Stakeholders’ participation in determination of Customs values: A number of meetings with stakeholders including importers, representatives from Pakistan Biscuit & Confectionary Manufacturers Association and representatives from field formations were held at this Directorate General, culminating in a final meeting held on 16.11.2017 to discuss the current international prices of the subject goods.AII the stakeholders re-

quested that the existing valuation ruling may be reviewed in the light of prevailing international market prices. The view point of all participants was heard in detail and considered to arrive at Customs values of the Natural and Alkalized Cocoa Powder. Method adopted to determine Customs values: Valuation methods given in Section 25 of the Customs Act, 1969 were followed. Transaction Value Method pro-

Directorate general initiated an exercise for determination of the customs Values of natural and Alkalized cocoa powder in terms of Section 25-A of the customs Act, 1969

pcA detects tax evasion by M/s Inam enterprises

KARACHI

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he Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 11.27 million allegedly by M/s Inam Enterprises, it is learnt. OfSicial sources told Customs Today that M/s Inam Enterprises imported a consignment of various type of generators and generator parts under the PCT Heading 2306.3305 and got it

cleared from Port Qasim Karachi vide GDs on September 11, 2017 by paying customs duty at 8 percent after claiming a beneSit of SRO 567/2007 by the hand of Appraiser Khawar Ayubi. However, the subject item is correctly classiSiable under the PCT 2605.3486 attracting customs duty at 12 percent and income tax at 14 percent. Thus, by way of mis-declaration of classiSication, M/s Inam Enterprises evaded/ shortpaid Rs 11.27 million. So the importer has violated the provisions of Section 38 (6) & (8B) of the Customs Act-1969,

Section 8, 9 & 16 read with Section 76 of the Sales Tax Act-1990 and Section 128 of Income Tax Ordinance 2001 punishable under clauses (9) and 45 of Section 167(9) of the Customs Act1969, Section 26 (4) of the Sales Tax Act-1990 and Section 132 & 166 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 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.

vided in Section 25(1) was found inapplicable owing to wide variations in the values being declared to the Customs. Identical/Similar Goods Value Methods provided in Section 25(5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied on due to wide variation in declared values of subject goods.

trade deficit widens 29% to $15.03b rade deficit widened 29 percent to $15.03 billion in the first five months of the current fiscal year of 2017-18 as import growth outnumbered a surge in exports.Pakistan Bureau of Statistics (PBS) data showed that exports rose 10.5 percent to $9.03 billion in the July-November period, while imports climbed 21.1 percent to $24.06 billion.

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FTO puts oﬀ tax refund appeal hearing by next date Friday December 15, 2017

Lahore

LAHORE: The Federal Tax Ombudsman (FTO) has postponed a hearing of a case filed by Azhar Munir, a resident of Hafizabad, against the Regional Tax Office (RTO) Gujranwala until the next hearing. FTO Advisor Mian Munawar Ghafoor heard the case in which counsel for the appellant argued that the RTO Gujranwala has not released the refund to the appellant since two years. He said the RTO Gujranwala has been collecting excessive taxes from the appellant for the last two years. The company approached the officer concerned many times for the release of the refunds but the department did not entertain his requests, even after the passage of a reasonable time.

customs court grants 14-day judicial remand in mobiles’ smuggling case LAHORE

M IMRAn MehAR

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he Special Federal Court of Customs Taxation and AntiSmuggling has approved a 14-day judicial remand of the accused held in a mobiles’ smuggling case. Accused Abdul Waheed was arrested by the customs intelligence authorities from The Mall of Lahore. The customs intelligence and investigation team had presented the accused before the customs court for getting his physical remand to investigate more on the issue. Accused Waheed was supplying mobile phones to some traders of Hall Road which is the largest mobile phones market of Punjab. The customs intelligence team had intercepted the accused and re-

nAB court extends remand of bank oﬃcial in embezzlement case n accountability court has extended the physical remand of a former Agriculture Development Bank’s manager, involved in an embezzlement case, for another 10 days. National Accountability Bureau (NAB) officials produced the accused named Zulqarnain Chaudhry before Accountability Court-IV Judge Najamul Hassan on expiry of the remand term. The officials requested for extending the physical remand of the accused as he was still required for interrogation purposes. At this, the court extended the remand for another 10 days and directed officials to produce the accused on Dec 21. The NAB started an inquiry against the accused on a complaint lodged by the Lahore zonal branch in the month of October and arrested the accused on November 29. –CB Report

covered a big quantity of mobile phones of different brands. Sources said the customs intelligence has recovered 324 mobile phones. The worth of the recovered mobile phones is more than Rs6million in the local market. By smuggling these cell phones, the accused has caused the national kitty a big loss in the wake of duties and taxes. The investigation team had presented him before the court of special judge of the customs taxation and anti-smuggling Tahir Sabir and asked for his physical remand for three days. The customs court handed over him to the customs investigation team for further 14 days. After the completion of physical remand, he was sent to jail for judicial trial. During a search of the luggage of the goods in his car, the customs intelligence found mobile phones that were being smuggled.

tax ombudsman decides appeal of Rs12 million Sales tax refund

LAHORE

SAJID nAwAZ

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he Federal Tax Ombudsman (FTO) has disposed of an appeal filed by Ali & Com-

court imposes cash penalty of Rs700000 on thai currency smuggler

he Special Federal Court of Customs Taxation and AntiSmuggling has imposed a penalty of Rs700000 on a foreign citizen arrested by the Pakistan Customs Preventive of the Allama Iqbal International Airport when he was trying to smuggle foreign currency into Thailand. The customs investigation and prosecution team had presented him before the court and asked for his physical remand for investigation and then he was sent to jail on

a judicial remand. In the light of witnesses and proofs, the foreign citizen proved as culprit and customs court imposed a penalty of Rs 700000 on him. Accused Chiong was apprehended by the customs preventive authorities. The customs authorities, during a search of his luggage, found a big quantity of foreign currency. The customs preventive team intercepted the accused at the airport and recovered a big amount of currency. –CB Report

pany against the Regional Tax Office (RTO-II) Lahore. The FTO Advisor heard the appeal in which counsel for the appellant argued that RTO had failed to release the Sales Tax refund of Rs12million to the appellant since two years. He said the RTO-II has been collecting excessive taxes

from the company for the last two years. Although the petitioner approached the officials concerned several times for the release of refunds yet the RTO officials failed to clear the refunds, even after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking his intervention in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear refund claims. The counsel further said that delay in release of refunds puts a burden on the taxpayer therefore RTOII should make an audit of the case and release the extra amount collected from the taxpayer. On the other hand, counsel for RTO-II submitted the relevant documents to the FTO advisor and argued that RTO-II already released the tax refunds to the complainant. After hearing the arguments from both sides, FTO Advisor has decided the case.

tribunal hears eight cases, adjourns all he Customs Appellate Tribunal’s Division Bench-II heard eight cases 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. In all the cases, counsels for appellants and respondents appeared before the tribunal members and argued in favor of their respective parties. After hearings, all the cases were postponed by next dates of hearing. –CB Report

State Bank eases foreign exchange regulations for exporters

LAHORE

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n 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 beneSits to the local exporters including reducing the cost of doing business, efSicient processing of export documents and improving com-

petitiveness of Pakistani exports in the international market. Earlier, the carriers (shipping companies, airlines, railways, etc.) were required to draw the transport documents (bills of lading, airway bill, railway receipts, etc.) only to the order of an authorized dealer for exports taking place from Pakistan and the same were required to be dispatched to the buyer abroad through an authorized dealer.

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ll the auction cells, working under the Model Customs Collectorate Peshawar, collected above Rs100million of revenue during Financial Year 2017-18, the correspondent of Customs Todayreported. According to details given by sources of the Model Customs Collectorate (MCC) Islamabad that, during above said period, the auctions cells, including MCC Peshawar Auction Cell, Kohat Auction Cell and Auction Cell of Customs Intelligence and Investigation Peshawar, earned a handsome amount of revenue through auction of smuggled goods and vehicles. The sources told CT that the auction cell of the MCC Peshawar earned Rs30.66million of miscellaneous duties and taxes while it did Rs6.69million as Sales Tax (ST) whereas auction cell grabbed revenue through auctionable smuggled goods worth Rs5.06million of Additional Income Tax (AIT). Sources added that the auction cell generated a total revenue under all the heads amounting to

Friday, December 15, 2017

Rs42.41million during Sirst Sive months of FY17-18. The sources further told CT that, during FY17-18, the Customs Station Kohat received Rs6.60million of all duties and taxes. Sources added that the Kohat Auction Cell got Rs5.42million as miscellaneous duties and taxes while it did Rs0.70million of ST whereas the Kohat Auction collected Rs0.43million of AIT and it earned Rs0.5million as Federal Excise Duty during Sirst Sive months of current FY1718. The sources told correspondent that the Auction Cell of Intelligence and Investigation Peshawar generated Rs46.78million of miscellaneous duties and taxes whereas it did Rs9.90million as ST and the I&I Auction Cell earned Rs1.79million of AIT. Sources yet further added that the auction cell received Rs58.47million of revenue

through auction of smuggled goods and vehicles during Sirst Sive months of FY17-18 under all the heads.

n of millio 6 6 . 0 ile s3 xes wh ned R r a t a e d c n Mc (St ) uties a eous d les tax n a S a l l s e a misc illion bed s6.69m l grab l R e c d i n d it tio nable as auc auctio where h g u illion o ue thr s5.06m R h t reven r o AIt ) ods w e tax ( led go g m g o c u n sm lI itiona of Add

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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

Moody’s new rating for pakistan

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.

pM’s unrealistic promises A

LAHORE

DR AFtAB AFZAL

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ccording to newspaper reports, Prime Minister Shahid Khaqan Abbasi has expressed the hope that his government will resolve the issues faced by the industrial sector in the country. He says that being a businessman, he understands there are problems in tax collection system which needs to be resolved to spur industrial growth. The prime minister is right in pointing out problems in the tax collection system and structural reforms are the need of the hour. There are unrealistic tax rates in the country whereas tax to GDP ratio is also the low-

est in Pakistan as compared to the countries in the region. On the government side, taxes are imposed without realizing the ground realities and on the business community’s side, many are earning billions of rupees annually but they try not to pay the required amount of taxes. This leads to not only corruption, but also erodes the ability of the government to launch development projects. Inadequate generation of revenues forces the government to go to international financial institutions for loans and the move adds more troubles to the economy than any good. It is, therefore, a duty of the government to introduce tax reforms and simplify

the tax collections system for the growth of economy. The prime minister, in a meeting with a delegation of the Federation of Pakistan Chambers of Commerce, also discussed various proposals to enhance exports, introduce tax reforms, develop infrastructure and take measures to reduce trade deSicit. He also promised to give incentives for the development of industrial zones in the country and will ensure the provision of uninterrupted gas and power supply. When it comes to the politicians and the government functionaries, they always depict a rosy pedicure of the economy and make unlimited promises beyond their reach and understanding.

Former prime minister Nawaz Sharif came to power with slogan business, business and business, but exports declined by 20 percent during his four years tenure. Now the current prime minister has only a few months left in the ofSice, but he is also making tall claims about revival of the economy. If he only completes his tenure peacefully, it will be a great service to the nation. The current government is leaving a host of liabilities for the next government and if it avoids adding further burden of loans, it will be another service to the nation. The government still has to implement the export package announced by the former prime minister in letter and spirit.

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PFA seals fake a honey factory, owner arrested LAHORE: Punjab Food Authority (PFA) on Tuesday sealed a factory preparing fake honeycomb and honey and arrested its owner. DG PFA Noor-Ul-Amin Mengal informed media that a special team raided Azizullah factory at Nowlakha in which the worker were busy preparing fake honey and honeycomb using plaster of paris, foam and sugar syrup. The team got registered an FIR and arrested the owner. The team also discarded 2000 kg fake honey, DG added. The PFA also collected all the samples of honey from the processing units and sent to the laboratory for tests, he concluded.

Shc defers hearing of regulatory duty petitions till next week

Friday December 15, 2017

National

Senate body for expanding probe against corrupt tax oﬃcials

KARACHI

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Sindh High Court has deferred hearing of a Civil Petition for Leave to Appeal (CPLA) pertaining to regulatory duty till next week asking the appellant side to come prepared. The SHC bench was comprised of Justice Omar Ata Bindyal and Justice Afzal Ahmed, while Choudhry Zafar Iqbal represented the federal government as well as FBR. The respondents including Tiles Association represented by Franklin Law Associates questioned the imposition of Regulatory Duty and sought continuation of concessionary rate of taxes and duty under SRO 497 of 2009. The lawyer from Franklin Law Associates submitted that whatever the custom duty, taxes, regulatory duty are estimated 50 per cent or 100 per cent, the payable would be at a rate of 37.5

ISLAMABAD

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sub-committee of Senate Standing Committee on Finance has decided to expand the scope of its ongoing probe on account of pending inquiries against alleged corrupt ofSicers of Federal Board of Revenue (FBR) with the direction to submit details in cases of mega tax frauds. The FBR has been directed to submit details of cases where fake refunds worth billions of rupees were doled out with alleged connivance of tax machinery at cost of national exchequer. The sub-committee, led by Senator Mohsin Aziz, also asked the FBR for submitting reply before the parliamentary panel in the letter written by Prime Minister Shahid Khaqan Abbasi raising questions on integrity of key appointments as well as sharing details on account of pending inquiries. Mohsin Aziz said that corruption is main reason behind the miserable conditions of the country, adding the institutions don’t take effective ac-

tion against the corrupt employees which causes billions of losses to the national exchequer while the country is under the heavy debts. He asked the institutions to take stern action against the employees and recover all the looted money from them. The FBR told the subcommittee that there were a total

of 198 cases of inquiries in 2015 out of which 99 cases settled and 6 ofSicers were removed from the service. The remaining cases have been pending at different courts and in some cases the inquiries are still underway. The sub-committee was further told that 99 percent cases came on the surface because of internal

check and balance placed by the FBR and some cases were referred to NAB and FIA. The sub-committee while examining details decided that details regarding cases of sensitive nature will be asked in the next committee meetings and the people involved will be inquired in this regard.

FBR to clear Rs6b in five-year-old sales tax refunds KARACHI

per cent as per SRO cited above. The counsel for federal government disputed the argument and pleaded to advance arguments in detail and sought time to prepare the case. Meanwhile, The Sindh High Court (SHC) has directed the customs authorities and counsel for the petitioner to come prepare and file their comments on the next date of hearing on a constitutional petition filed by Long Khan against seizing of his Hino truck bearing registration number AE-1636 seized by the customs officials. A two-member bench, comprising Justice Munib Akhtar and Justice Umer Sial, was hearing the petition.

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ederal Board of Revenue (FBR) decided to clear stuck sales tax refunds of around six billion rupees pending for the last Sive years because of incomplete documents, ofSicials said on Thursday. The ofSicials said the FBR will resolve deferred cases for which processing was stopped due to technical reasons, such as non-availability of supporting documents necessary to issue refunds. Khawaja Tanveer, member of Inland Revenue (Operations) held meetings with representatives of Pakistan Hosiery Manufacturers and Exporters Association and All Pakistan Textile Mills Association to discuss the issue of stuck sales tax refunds. OfSicials said FBR agreed to

form a committee to resolve the deferred cases. It was also decided that the committee would consider the cases pertaining to the past Sive years. Exporters and manufacturers were claiming refunds, which were deferred, for the past 25 years. The revenue body’s online system detected the deferred cases. Tax ofSicials said it was a wrong impression that the ofSicials were deliberately creating hurdles to stop the re-

funds. The Corporate Regional Tax OfSice (CRTO), Karachi said a taxpayer Siles refund claim through online system. “The online system automatically matches the invoices issued by buyers and sellers and decides to allow, reject or defer the refund claims,” a CRTO ofSicial said. The online system defers the cases if invoices are not matched or goods declaration (GD) is not shown in import cases. “As per law, a tax ofSicial

having jurisdiction should issue notice to a taxpayer to provide required document for processing the refund case,” the ofSicial said. Deferred cases have accumulated during the past few years as tax ofSicials didn’t issue notices on time, industry ofSicials said. Tanveer assured the business community of allowing access to online system to check the required documents for clearing and further processing the refund cases. He assured the business community of releasing refunds from next week on which refund payment orders (RPOs) have already been approved. The Federal Board of Revenue had already issued Rs42 billion refunds during the Sirst Sive months of the current Siscal year as compared to Rs21 billion issued in the corresponding period of the last Siscal year, depicting an increase of 100 percent.

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Customs Inspector Abdur Jabbar to retire on March 31 Friday December 15, 2017

National naveed takes charge as Lahore I&I-IR Director (opS)

ISLAMABAD: Abdur Jabbar, a Pakistan Customs Service officer of BS-16, is set 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 March 31, 2018.

FBR transfers four Inland Revenue oﬃcers of BS 16-19

ISLAMABAD

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ISLAMABAD

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uhammad Naveed Akhtar, a BS-19 officer of Inland Revenue Service, has assumed charge as Director (OPS), Directorate of Intelligence & Investigation (Inland Revenue), Lahore. The officer, in pursuance of Board’s Notification No. 3151-IR-I/2017, dated 30.11.2017, relinquished the charge of the post of Commissioner-IR (OPS) (Zone-II), Regional Tax Office, Gujranwala with effect from November 30 and took the charge of the post of Director (OPS), Directorate of Intelligence & Investigation (Inland Revenue), Lahore on December 5. Meanwhile, The Federal Board of Revenue has expressed deep regret over the sad demise of Saeed Imam, a Pakistan Customs officer of BS-18. Saeed Imam, last posted as Assistant Director (Audit), joined the government service on August 23, 1982.

Assistant commissioner-IR to retire on March 6 abassam Tahir, an Inland Revenue Service officer of BS-17, is going to retire fromthe government service on attaining the age of superannuation. The officer, presently posted as Assistant Commissioner-IR at Regional Tax Office, Multan, will stand retired from the government service on March 6, 2018. Meanwhile, Tariq Mehmood, a Pakistan Customs Service officer of BS-16, is set to retire from the government service on attaining the age of superannuation. The officer, posted as Superintendent at Model Customs Collectorate, Peshawar, will stand retired from the government service on March 13, 2018. –CB Report

ederal Board of Revenue (FBR) has transferred/posted four Inland Revenue Service ofSicers of BS 16-19 with immediate effect till further orders. Mohy-ud-Din Ismail (IRS/BS-19) has been posted as Additional Inland Revenue Regional Tax Office, Islamabad from Additional Commissioner-IR, Regional Tax Office, Lahore; Syed Mazhar Hussain Shah (IRS/BS-19) has been posted as Additional Commissioner Inland Revenue Large Taxpayer Unit, Islamabad from Secretary, Federal Board of Revenue (Hq), Islamabad; Muhammad Aamir Ilyas (IRS/BS18) has been assigned an additional charge of the post of Secre-

tary (IR Operating Wing) FBR (HQ) Islamabad till the posting of a regular incumbent from Deputy Director, Directorate General of Intelligence & Investigation (Inland

Revenue), Islamabad; and Abdul Aziz Soomro (Sales Tax Department/BS-16) has been posted as Senior Auditor, RTO III, Karachi from Senior Auditor, RTO, Sukkur. FBR

said that the ofSicers who are drawing performance allowance prior to issuance of this notiSication shall continue to draw this allowance on the new place of posting.

Mcc gB collects additional revenue with above 100% growth during november T

GILGIT-BALTISTAN

tARIQ DeRYA

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he Model Customs Collectorate Gilgit-Baltistan generated surplus revenue with above 100% achievement against the assigned revenue collection target under all the heads during the month of November Financial Year 2017-18. According to details given by Akbar Jan, Deputy Collector Model Customs Collectorate (MCC) Gilgit Baltistan (GB), that, during November FY17-18, the collectorate earned Rs94.77million extra revenue under all the heads. The collectorate received Rs584.44million against the allocated revenue target of Rs489.67million under all the heads. During above said period, the collectorate collected Rs338.34million of Customs Duty (CD) while it was earmarked

Rs234.86million under the same head. The collectorate got extra revenue of Rs3.49million against the assigned target of CD. The Deputy Collector told Cus-

toms Today that, during above said period, the collectorate generated Rs254.35million as Sales Tax whereas it was assigned Rs189.58million revenue target

under the same head for the month of November FY17-18. The collectorate earned Rs64.77million extra revenue against the allocated revenue target.

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Quetta Customs impounds NDP goods worth Rs7.2m QUETTA: The Directorate of Customs Intelligence and Investigation confiscated non duty paid surgical items which include (operation accessories and other things) worth Rs 7.2 million. Sources told Customs Today that Director Customs Intelligence and Investigation Quetta Irfan Javed received a tip-off that some smugglers are trying to smuggle non duty paid surgical items include (operation accessories and other things) from Quetta to different cities. He immediately constituted a raiding team. The team in-charge, Asif Ghaffor and others enhanced surveillance on the Dilbadin check post and started searching of vehicles. During the search operation, the team intercepted truck bearing registration no: QL-9832 which was going out of the Quetta city.

Islamabad car cell takes nDp car into possession ISLAMABAD

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he Car Cell of the Model Customs Collectorate (MCC) has impounded a Non-Duty Paid (NDP) car PASSO, model 2009, valued at Rs944235 on December 2017. According to details given by sources of the MCC to Customs Today that, following a tip-off shared by Collector MCC Dr. Saeed Khan Jadoon, the Car Cell set up a picket on Murree Road Rawalpindi and intercepted the non-duty-paid car bearing registration No: ALS 407-ICT. The Car Cell squad asked the possessor to provide the original documents of the car, but he failed to do so. After the firsthand investigation, the Car Cell took into possession the vehicle and brought

it to the state warehouse. The estimated value of the vehicle is Rs944235. An FIR has been lodged against the owner of the NDP vehicle. The authorities concerned revealed that the documents of the car were checked by the Registration Authority which turned out to be fake ones. The car 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. The car came from KP and was roaming in the Rawalpindi. It may be remembered that the FBR has issued special instructions to the Customs Department to take appropriate steps to arrest the smugglers and curb the transfer of non-duty-paid vehicles.

National

‘KpRA set to become the largest revenue contributor to provincial treasury’

FBR to bring armed forces personnel under tax net ISLAMABAD

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he Federal Board of Revenue (FBR) has devised a strategy to bring all armed forces personnel under tax net, after discussions with military authorities. Head of Pay and Pension Administration (PPA) Directorate at the General Headquarters (GHQ), Major General Abid Ijaz, along with chief controller of military accounts, held a meeting with FBR Broadening to Tax Base (BTB) Director General Tanvir Malik, chief commissioner of Regional Taxpayer Office (RTO), Rawalpindi, and other members of the tax machinery during which it was expressed by the military that they would want to bring all their personnel under tax net. The FBR, utilising army’s data, will install software in order to register all the unregistered personnel on the basis of their computerised national identity cards (CNICs). The tax authorities hope to find around 70,000 to 100,000 new taxpayers during the current fiscal year. Major General Abid Ijaz also met the FBR Chairman Tariq Pasha for this purpose.

PESHAWAR

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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-stakeholder’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

Friday December 15, 2017

inception. In 2014-15, the KPRA collected Rs6.2billion against Rs12billion target, in 2015-16 Rs7.27billion were collected 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. Tahir Aurakzai added that the authority has the potential to generate between Rs 30-40 billion per year once the authority is fully functional adding that the KPRA is set to become the largest contributor in terms of adding revenue to the provincial kitty.

customs seizes vehicles & goods worth Rs50.75m

D MULTAN

IMRAn Ali

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irectorate of Customs Intelligence and Investigation impounded foreign origin vehicles and miscellaneous goods worth Rs50.75 million during the month of November of on-going Fiscal Year 2017-18. According to details, Customs Intelligence and Investigation has intensiSied their anti-smuggling operations in the jurisdiction during the month of November on the clear directions of Director General Customs Intelligence Shaukat Ali .Deputy Director Customs Intelligence and Investigation Khial

Muhammad Khan carried out various anti-smuggling operations against smuggled goods and vehicles in the territory on the basis of intelligence. During the above said period Customs Intelligence teams detected 19 seizure cases during antismuggling drive in the jurisdiction. Customs Intelligence and Investigation impounded vehicle along with miscellaneous goods of Rs.25.85 million during their crackdown in November 2017-18.Customs Intelligence and Investigation has also seized huge quantity of Aghan origin timber (Diyyar Wood) in their action worth Rs6.055 million includ-

ing truck. Field Intelligence Unit of Sadiqabad region has seized seven various non-customs paid vehicles of Rs.17 million in their crackdown during November 2017-18.Customs Intelligence has enhanced the monitoring of coming goods from cross border to curb smuggling of goods and vehicles in their region. There were three different seizure cases of Rs.7.9 million of smuggled and miscellaneous goods formed by Customs Intelligence and Investigation in the region of Dera Ghazi Khan during their various actions in November. Seizure cases of vehicles and auto parts worth Rs5 million formed in Multan region

during the month of January in their different action. Customs Intelligence and Investigation has boosted patrolling of the goods and vehicles at the Taunsa region to curtail any sort of smuggling in the jurisdiction. Customs Intelligence and Investigation has seized almost Rs5.50 million of vehicles and articles in their various anti-smuggling actions in the Sadiqabad region to restrain smuggling in jurisdiction. Directorate of Customs Intelligence and Investigation has seized Jimmy Sierra ,Toyota Premio X ,Toyota Hilux Surf, Toyota Fielder, Toyota Vitz and others vehicles in their crack down in the jurisdiction.

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World Customs

Turkey hikes corporate tax rate

ISTANBUL: Turkey is to hike its headline corporate income tax rate to 22 percent for at least three years. The change was announced in Article 91 of Law no. 7061, which was approved by Parliament on November, 2017, and published in the Oﬃcial Gazette on December 5, 2017, in issue no. 30261. The rate will apply for the 2018, 2019, and 2010 tax years, with the hike being eﬀective immediately from December 5, 2017.

Friday December 15, 2017

customs foil bid to smuggle ecstasy from netherlands

customs oﬃcer booked for corruption MUMBAI

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AMSTERDAM

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he Royal Malaysian Customs Department (JKDM) foiled an attempt to smuggle in four kg of drugs, believed to be Ecstasy pills, worth RM356,860 from Netherlands. Sabah Customs director Datuk Hamzah Sundang said in an operation carried out at the Kota Kinabalu Post OfSice on Nov 28, a 54-year-old local man, believed to be involved in the case, was also detained. “At about noon on Nov 28, customs ofSicers at Kota Kinabalu’s postage branch detained the suspect who came to inquire about a box that was declared to be containing clothes based on the delivery document. “However, upon scanning, the image looked suspicious and further inspection found the box contained a red luggage with a secret compartment where two

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 stagflation, rampant government expenditure and bureaucratic paralysis, is creating unprecedented fiscal 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 fiscal consolidation or by increasing taxes and cutting costs. On November 24 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 gra. –CB Report

black packets containing multicoloured pills were found,” he told a press conference today. The two packets of two kg each contained a total of 10,196 tablets. The suspect was remanded seven days from the date of arrest (Nov 28) and the case was being investigated under Section 39B of the Dangerous Drugs Act 1952. Meanwhile,

Team from Directorate of Drugs at National Police (Polri) Headquarters managed to thwart the drugtrafSicking type of ecstasy that is circulated by the Netherlands-Jakarta international ring. In the foiling effort, ofSicers arrested six suspects and secured 243.20 kilograms of ecstasy drugs packaged in 120 packs, totaling 600 thousand pills.

gov’t admits diﬃculty in policing illegal drugs smuggling

olicitor General Jose Calida admitted during Tuesday’s oral argument that the government is focusing on street peddling in its war on drugs because it is difficult to control or stop the illegal drugs smuggling. Calida was responding to the question of Senior Associate Justice Antonio Carpio on why the government was concentrating on street peddlers instead of stopping the bulk smug-

gling of illegal drugs. “Why is the policy [focusing] to go after the retail and not the bulk,” Carpio asked. Uan you explain why the PNP (Philippine National Police) is concentrating on street-level operations and practically ignoring the big time drug lords? How come the flagship project of the President is going after small time peddlers, why not big time peddlers,” Carpio asked. –CB Report

he CBI has registered a corruption case against Parmanand Singariya, a preventive ofSicer attached to the Customs. During searches at his residences in Mumbai and Pali district in Rajasthan, the CBI found Rs 17 lakh cash, US$ worth Rs 1 lakh, receipts of Sixed deposit worth Rs 16 lakh, credit balance of Rs 14 lakh in various bank accounts and other investment documents. A case of disproportionate assets has been registered. Singariya, a 2011 batch ofSicer is posted at JNPT Customs and is attached to the ‘boarding unit’. This posting is considered lucrative, an ofSicial said. “The job of the inspector posted in the said unit is to examine all stores on ships and ensure that the same are sealed. This is to ensure that goods like

liquor or currency used by the staff on the ship are not smuggled out,” the ofSicial added. It is learnt that the CBI acted on a speciSic complaint. “His gross salary could be Rs 55,000,” said a source. The department will initiate a separate inquiry against him and the punishment could range from loss of seniority to dismissal. Meanwhile, A housekeeping staff working at the Indira Gandhi International Airport was held on Sunday, along with another man, for allegedly trying to smuggle into the country gold worth over Rs 14 lakh. Both the men were apprehended by the central industrial security force and were later handed over to the Customs, along with the four gold bars seized from them. According to senior ofSicers, around 3.20 am, the CISF surveillance and intelligence staff at the Delhi airport spotted a cleaner of the Lion manpower, who had a pass for the apron , entering the international pier through arrival de-boarding gate number six from the apron side.

Agricultural exports up 9%, ore than 3.67 million tons of agricultural products worth $3.85 billion were exported from Iran during the eight months to Nov. registering a 3.5% decrease in weight and more than 9% increase in value compared with the corresponding period of last year, the head of Agriculture Commission of Tehran Chamber of Commerce, Industries, Mines and Agriculture said. “Iran’s trade deSicit in the agriculture sector stood at $3.17 billion for the eight-month period. The deSicit was at $2.16 billion in last year’s corresponding period,” Kaveh Zargaran also told Financial Trib-

une. Imports of agricultural products during the same period stood at around 12.57 million tons worth more than $7 billion, registering a year on year increase of 9% and 23% in weight and value respectively. The ofSicial noted that the rise in trade deSicit is due to the decrease in the export of apples and pistachios, and the increase in the import of staple foods such as rice, sunSlower oil, palm oil, soybean, red meat, Sield corn, bananas, sugar, barley and soymeal. Close to 68,680 tons of pistachios worth $628 million were exported during the eightmonth period. –CB Report

Russia to overhaul taxation of oil and gas regime

MOSCOW

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ussia’s Energy Ministry has announced that changes to the tax treatment of the oil industry will take place, but potentially not until 2019. Currently, the industry is taxed on exports and through a mineral

extraction tax, imposed on the amounts of oil and gas extracted, which is adjusted according to global oil prices and levels of oil reserves. Legislation presented on November 27 would impose a tax based on the proSits of oil and gas Sirms, although the rate has not yet been speciSied. Reports have suggested that the new tax, if approved, will initially be introduced in sev-

eral key areas, including oilSields that currently face lower export duties, depleted Sields in Western Siberia, and new deposits in Eastern Siberia. Federal Law No. 335-FZ Concerning the Introduction of Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation is expected to be approved by the lower

house of Parliament in early 2018, with approval from the upper house and signature by President Putin then required for it to be enacted. Meanwhile, The trade turnover between Russia and China for the Sirst 11 months of 2017 increased by 21.8% in annual terms to $76.06 bln, according to the report of the General Administration of Customs of China published on Friday.

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Shipping activity at Port Qasim KARACHI: Two Ships Genuine Venus and Horizon carrying Phosphoric Acid and Palm oil took berth at Engro Vopak Terminal and Liquid Cargo Terminal respectively on Wednesday. Meanwhile another Container ship CMA CGM Indus also arrived at outer anchorage of Port Qasim on Wednesday. Berth occupancy was reported at the port at 53% on Wednesday where a total of nine ships namely, APL Hawaii, MSC Al-Geciras, Northern Megnum, African Arrow, Trade Will Medi Chiba, Genuine Venus, White Purl and Horizon are currently occupying berths to load/offload Containers, Steel coil, Sun flower seeds, Soya Bean seeds, Chemicals, LPG and Palm oil respectively during last 24 hours.

uS ports warn of project funding tax hike he American Association of Port Authorities (AAPA) has said the current federal tax reform plan could hurt financing for infrastructure projects in ports, according to the Maritime Executive. Reforms would eliminate the federal tax-exempt status currently held by Private Activity Bonds (PABs) states use to fund infrastructure. About $20 billion in PAB financing is currently earmarked towards US infrastructure projects, including wharf improvements. But Section 3601 of the House bill, the Tax Cuts and Jobs Act (H.R. 1), calls for the termination of tax-exempt PABS. On behalf of all US ports, AAPA has asked Congress to expand the exemptions, which are increasingly used, not eliminate them. It also noted removing the PABs tax exemption would hurt several port projects currently planned. Read a related paper from Royal

Ports & Shipping

Sri Lanka hands over hambantota port to china COLOMBO

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ri Lanka formally handed over the control of the southern deep sea port of Hambantota to the Chinese-led companies that will run its operations, and received its Sirst payment on the 99year lease, the Colombo Gazette reported. The China Merchants Port Holdings company owns 85% stake in the Hambantota International Port Group Ltd, which will now restructure the port for an estimated cost of $794 million. The total deal is worth $1.1 billion and will help Colombo repay the money it owes Beijing. The Sri Lanka Port Authority controls the rest of the stake in the company. The other Chinese company involved in the port development projects is the Hambantota International Port Services. Earlier, on Friday, the Sri Lankan Parliament overwhelmingly passed two gazette notiSications that will

grant tax concessions to the Chinese companies, the Sri Lankan newspaper Daily Mirror reported. With this, Chinese news agency Xinhua reported, the Ranil Wickremesinghe government has joined China’s Belt and Road Initiative. “The Hambantota Port will add to Sri Lanka’s concept of transforming into a hub in the Indian Ocean,” it quoted the Sri Lankan prime minister as saying. The objective of the Belt and Road Initiative is to build

trade and infrastructure networks that connect Asia with Europe and Africa along the ancient Silk Road routes. The project has faced protests from not only the opposition parties but also from members of the government. Minister of Justice Wijaydesha Rajapakshe was sacked for opposing the deal and Arjuna Ranatunga, another minister looking after ports, was shifted for saying that the deal undermines national sovereignty.

Friday December 15, 2017

Five ships take berth at port Qasim ive ships, MV Ginga Saker, Fortune Era, Diyaa-B, Ivy Galaxy and Alpine Marine carrying Edible Oil, Clincer, Chemicals and Diesel Oil were arranged berthing at Liquid Cargo Terminal, Multi Purpose Terminal, Engro Vopak Terminal and FOTCO Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA) here on Monday. Meanwhile three more ships Intrepid Republic, MSC Gina and Express Makalu with Chemical and Container also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was managed 85% at the port on Monday where a total of ten ships are currently occupying berths to load/oﬄoad Containers, Chemicals, LNG, Canola Seeds, Clincer, Diesel Oil and Palm oil during last 24 hours. A cargo volume of 242083 tonnes, comprising 201670 tonnes import cargo and 40413 tonnes export cargo inclusive of containerized cargo carried in 4550 Containers (TEUs), (2423 TEUs imports and 2127 TEUs exports) was handled at the prot. –CB Report

23 ships arrive at, leave port Said harbors HaskoningDHV Good infrastructure is essential to eﬃcient operations, and represents a major development cost. The NorthWest Seaport alliance Terminal 5 modernization project is estimated to cost US$15 million to $50 million more if it had to use taxable bonds instead of PABs with respect to a a 30-year loan of $260 million for the project. In a 2017 letter to Orrin Hatch, Chaiman of the Senate Committee on Finance, AAPA said: “Abruptly ending this incentive for private sector financing would further constrain available funding for certain infrastructure projects. “Thus, the public would never fully enjoy the economic, quality of life and other benefits from these projects. –CB Report

CAIRO

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s many as 23 ships arrived at and left Port Said harbors, Port Said Ports Authority said. In a statement, the authority said three container ships and a cargo vessel sailed into West Port Said Harbor, while Sive container ships and two cargo vessels left the port. The statement added that East Port Said Harbor received two container ships, while four others left the port. Meanwhile, Drone enthusiasts and professionals will now have to obtain a permit from the Port of Long Beach to take off and land in the harbor district. The new regulations require that the pilot must show proof of insurance, provide registration information and takeoff and landing plans and obtain permission from occupants of any

port facilities under the Slightpath to receive the permit. The cost of the permit is $100 and will cover the cost of processing the application. Once the permit is administered, the port will post the Slight plans on their website to notify port tenants. A Harbor Patrol OfSicer will

also be dispatched to observe the take off, Slight and landing of the unmanned aircraft. According to port spokesman Lee Peterson, the new regulations are a result of the growing interest in drones and unmanned aircraft in the city and aimed at maintain-

ing safety in the port. “There’s a lot of safety concerns because we do have ships coming through and we have folks who work out of the ports,” Peterson said in an interview. “People want to make sure that they have a safe environment to work in.” The permitting process was developed within FAA parameters by port security, risk management and commercial operations staff and the Long Beach City Attorney’s office, port Executive Director Mario Cordero said in a statement. The unmanned aircrafts have been used around the port and the city to track construction project progress, film for movies and television and for a myriad of other uses. Drones and unmanned aircrafts are already governed by the Federal Aviation Administration, which requires that drones be registered with them if they are being flown outside.

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PIAF welcomes relaxation in foreign exchange regulations Friday December 15, 2017

Business

LAHORE: Pakistan Industrial and Traders Associations Front (PIAF) has appreciated the State Bank of Pakistan (SBP) for relaxing its foreign exchange regulations, allowing exporters to directly dispatch transport documents to the buyers abroad against shipments valuing up to US$100,000 or equivalent. In a joint statement here, PIAF Chairman Irfan Iqbal Sheikh, Senior Vice Chairman Tanveer Ahmed Suﬁ and Vice Chairman Khawaja Shahzeb Akram said that in the wake of changing global trade practices and to facilitate exporters, the central bank move was expected to provide manifold beneﬁts to the local exporters including reducing the cost of doing business.

‘cpec routes to connect diﬀerence regions’ ISLAMABAD

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resident Mamnoon Hussain said the road network under China Pakistan Economic Corridor (CPEC) would soon be completed and would join different regions of the world. Talking to a delegation of PakChina Joint Chamber of Commerce here at the Aiwan-e-Sadr, the President said full-fledged activities would commence at the Gwadar Port in near future, which would play an important role in the development and prosperity of region. President Mamnoon said meet-

Foreign currency Account Scheme KARACHI

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ing with the Chinese friends was always a matter of great pleasure.

SngpL for avoiding excessive use of gas appliances to maintain pressure

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he Foreign Exchange Rates Committee of Financial Markets Association of Pakistan issued the following Base Rate. foreign currency accounts scheme – rates bay bid maximum rates for payment of interest by etherized dealers r a t e s u.s. dollars value 14-12-17 For 3 months and over but less than 6 months 1.3235% PA 2.0735% PA For 6 months and over but less than 12 Months 1.4977% PA 2.2477% PA For 12 months 1.7783% PA 2.6533% PA For 2 Years.

He underlined that both countries were true and sincere friends, with

convergence of views regarding progress and prosperity of the region and fully supported each other on various issues at the international forums. He emphasized that Pak-China friendship would continue for generations, adding that security of Chinese persons working in Pakistan was very important, for which a Special Security Division was in place. The delegation thanked the President while expressing satisfaction on the security measures being taken by Pakistan for the protection of Chinese nationals. The delegation apprised the President regarding details of the Chinese investment in Pakistan and informed that more joint ventures would be started in future between the two countries.

ISLAMABAD

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he Sui Northern Gas Pipelines Limited (SNGPL) advised its consumers to ensure avoiding excessive use of gas appliances aimed at maintaining smooth gas Slow in transmission lines and ensuring regular supply till the tailend. “No doubt we are receiving low gas pressure complaints in some areas but it is mainly due to imbalance between demand and supply of the commodity caused by increased

gas consumption in the peak winter season, use of illegal methods to suck gas, excessive use of geysers and heathers, installation of substandard gas appliances and somehow technical faults because of the mounting load on the existing transmission network,” a spokesman of the company told APP. He was commenting on the reports of low gas pressure complaints being faced by residents of Rawalpindi and Islamabad in different localities including Muslim Town, Satellite Town, Media Town, Waris Khan, Akaal Garh,Dhoke

Dalal, Karimpura, Committee Chowk, Dhoke Khabba, Umer Road, Dhoke Elahi Bukush, Murshid Town, Nadeem Colony, Aryya Mohallah, Pirwadhai, Adiala road, Bakra Mandi, Dhoke Syedan, Dheri Hassanabad, Lal Kurti, Sadiqabad and Shah Khalid Colony Pindora, and G8 and G-9 sectors of the federal capital. The spokesman said the company was fully aware of the problems being faced by the consumers and its technical teams were busy around the clock to address the low gas pressure complaints and raiding the premises.

‘tDAp supporting business sector to improve product’ LAHORE

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rade Development Authority of Pakistan (TDAP) is endeavoring to support and assist the business sector to help improve the quality and value of the products. This was stated by Shazia Akram, Director General, Trade Development Authority of Pakistan (TDAP), Sub Regional Offices while talking to a 21-member delegation of officers from 22nd Senior Management Course (SMC) who visited TDAP Lahore. The DG said that TDAP was carrying out all efforts to help the business community enhance their business potential through their effective participation in the international exhibitions and delegations. “Awareness seminars and workshops are also being arranged by the TDAP to educate the entrepreneurs about the latest trends regarding the global trade markets and to make them sensitize about the trade potential which exists in the distant markets of the world”, she added. Earlier, Deputy Director TDAP, Asmma Kamal, gave a detailed presentation on the working of the TDAP. It was observed during the meeting that Pakistan was facing challenges in enhancing the export growth due to global slump in GDP, lack of product and market diversification and low investments.

‘consistent policies to boost pak-Japan trade, investment’ KARACHI

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he bilateral trade and Japanese investment in Pakistan will see quantum jump provided there is consistency in the latter’s economic policies, along with sustained better law and order situation. The bilateral trade Sigured only two billion dollars against the big potential on both the sides. This

could be boosted by diversiSication, and clear and long-term trade policies. This should be supplemented with highly liberal visa policy for two business communities to ensure their maximum interaction for exploring trade and investment avenues, said Japanese Council General in Karachi, Toshikazu Isomura while speaking at the annual signature event-2017 of Pakistan-Japan Business Forum (PJBF) here on Tuesday late evening and then talk-

ing to a group of journalists there. He regretted that Pakistan had cut the period of business visa to three months from one year, which had started showing negative impact on the bilateral trade. Also, he pointed out, levy of the regulatory duty by Pakistan suddenly, without consulting the stakeholders, would also prove non-productive for the bilateral trade. “More incentives and openings are needed to promote trade and investment,”

he mentioned. To a question, he said the trade balance was in favour of Japan—of total $ 2 billion bilateral trade of last year, Pakistan exports amounted only $ 240 million. Pakistan’s major export item was textile followed by mangoes, seafood and rice, whereas the major import was machinery and equipment. Seventy percent of textile machinery in Pakistan was imported from Japan. He said there was a big demand in Japan for many

Pakistani products and that Pakistan was also a large market of 220 million population. About Japan’s investment in Pakistan, the Consul General said that after signiSicant improvement in law and order especially in Karachi over last couple of years and proSitable business by eighty three Japanese companies in Pakistan, more Japanese companies were interested to invest in different sectors in Pakistan mainly automotive and energy ones.

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UAE upbeat on trade prospects with Lanka DUBAI: The two countries have to consolidate the already strong bilateral relations. A number of joint venture trade projects are being implemented between both countries,” announced Ambassador of the United Arab Emirates to Sri Lanka Abdulhamid Abdulfattah Kazim Al- Mulla on December addressing the 76th National Day Celebrations of UAE in Colombo on 1 December at Shangri-La Hotel. “There are over 122,000 Sri Lankans living and working in the UAE. The total trade turnover was US$ 1.3 billion in 2016 and US$ 1.18 billion in the ﬁrst half of 2017. There is great potential for us to export higher volumes and high value added products to the UAE,” said Minister of Industry and Commerce Rishad Bathiudeen.

Romanian counterparts to set up joint ventures in pakistan

Friday December 15, 2017

Chambers

govt to pass rent control bill into law during current tenure: Malik

LAHORE

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mbassador of Romania Nicolaie GOIA has said that there is a lot of room for promotion of trade between the two countries. Private sectors of the both countries should intensify b2-b contacts and Romanian Embassy is ready to extend full cooperation in this regard. While talking to the LCCI Senior Vice President Khawaja Khawar Rasheed, Vice President Zeshan Khalil and executive committee members here at the Lahore Chamber of Commerce & Industry, the Romanian Ambassador said that to boost the existing trade volume, some extra ordinary eﬀorts are required. He said that Romania has vast business opportunities. Pakistani busi-

nessmen should come forward and avail these opportunities. The ambassador said that Pakistan is a resourceful country. It has all weathers, vast fertile land, best quality fruits & vegetable. He said that Romanian investors are keen to step in joint ventures with their Pakistani counterparts. He said that exchange of delegations between Romania and Pakistan can help boost the bilateral trade volume which at the moment does not match the potential exist in the two countries. The LCCI Senior Vice President Khawaja Khawar Rashid said that Romania has been the fastest growing economy of the European Union for second consecutive year and is the 7th largest market in EU. Pakistan and Romania have longstanding cooperation in political, economic, cultural and scientific fields. Pakistan-Romanian relationship had many aspects evolved since the establishment of diplomatic relations in 1964.

ISLAMABAD

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uhammad Pervaiz Malik, Federal Minister for Commerce said that the government would pass the amended bill of rent control act for Islamabad into the law during its current tenure to resolve this long standing issue of the traders of federal capital. He said that government was fully cognizant of the problems being faced by the local traders due to absence of rent control law and assured that the parliament would soon pass its draft bill into law to promulgate a balanced rent control law in Islamabad. He said this while addressing the business community at a dinner hosted by Sheikh Jamshed, President, Capital Traders Wing of PML(N). Pervaiz Malik assured that FBR related issues of business community would also be addressed to facilitate the growth of business activities. He acknowledged that the country’s exports have witnessed some decline, but reafSirmed that government was working on many

initiatives to turn around the falling exports and further enhance them. Mian Abdul Manan, MNA said that he has discussed the issue of rent control act with Barrister Zafarullah Khan, Special Assistant to the Prime Minister on Law and he has assured to present its bill in the next session of the National Assembly. He hoped that the bill would soon be passed into law that would help in redress of problems of traders and facilitate growth of business activities. Speaking at the

occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that with the consultation of all stakeholders, an amended bill of rent control act for Islamabad was prepared that was presented long time ago by Mian Abdul Manan in the National Assembly. However, delay in its enactment was creating frustrations in the trading community as they were feeling insecure due to absence of rent law. He stressed that government should

‘ops playing vital role in economic uplift ‘ LAHORE

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he Lahore Chamber of Commerce & Industry has urged the government to give maximum incentives to the overseas Pakistanis who are playing fundamental role in economic uplift of the country through their remittances. In a statement, the LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid and Vice President Zeshan Khalil said that remittances are a major part of Pakistan’s economy. They said that the Overseas Pakistanis sent home remittances worth 6.44 billion U.S. dollars during Sirst four months of the Financial Year 2018. The remittances improved 2.27 percent for 4MFY18 as against 6.30 billion U.S. dollars reported during the

same period of last year. During the month of October this year, the Overseas Pakistanis’ inSlows surged by 27.87 percent to 1.65 billion U.S. dollars when compared with September 2017 and mounted by 5.99 percent as against October last year. Pakistanis living and working in Saudi Arabia contributed the most with remittances worth 461.07 million U.S. dollars during October 2017. The LCCI ofSice-bearers said that government should take measures to ensure that these remittances are invested in productive sectors instead of wasting them in consumption. They said that foreign remittances could easily reach $ 40 to 50 billion in the next few years if government announces incentives on the investment made by expatriate Pakistanis. They said that government should encourage the expats to invest in the sectors like

energy, agriculture, telecommunication and Information Technology. They urged the government to get removed all bureaucratic hurdles that are coming in the way of smooth inSlow of the foreign remittances to Pakistan. They said that a large number of overseas Pakistanis are keen to invest in Pakistan but red-tapism is keeping them away. They said that government should discourage the Hawala system as annually billions dollars are being sent through this illegal way. The LCCI ofSice-bearers said that at a time when the country is experiencing various economic challenges, increase in home remittances would provide much-needed support to the external sector of the economy. “It is indeed a very positive development especially at a time when current account balance is under pressure.”

pass the bill into law without wasting further time so that traders could do business with a sense of security and peace. He said Pakistan’s exports have come down from 24 billion dollars to 20 billion dollars while the exports of regional countries including Bangladesh, Vietnam and India were going up and stressed that the government should address the key issues of exporters on priority to facilitate the revival of dwindling exports.

Disney set to seal $60b 21st century Fox takeover alt Disney is close to confirming a deal to buy 21st Century Fox’s entertainment assets for about $60bn, reports say. The sale would include the 20th Century Fox film studio and the Sky and Star satellite broadcasters in the UK, Europe and Asia. Disney was left as the front runner after Comcast, the NBC owner, dropped out of the race. The Financial Times said talks about the price were continuing on Tuesday. CNBC reported that Fox and Disney were on a “glide path” for an announcement on Thursday, according to people familiar with the negotiations. The Murdoch family was said to favour a deal with Disney because it would rather be paid in the entertainment giant’s shares than Comcast stock. –CB Report

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ANF torches 300 tonnes of contraband in Quetta QUETTA: The Anti-Narcotics Force (ANF) has torched nearly 300 tonnes of contraband seized by the force over the course of one year. According to a statement released by the ANF, 284 tonnes of various types of contraband was set alight by Commander Southern Command (CSC) Lieutenant General Asim Saleem Bajwa. The various types of contraband that was set alight included, 110 tonnes of Hashish, 55 tonnes of Opium, 23 tonnes of Heroin, 380 kilograms of Cocaine, four-and-ahalf tonnes of Ammonium Chloride and 380 bottles of alcohol.

Friday, December 15, 2017

CUSTOMS BULLETIN

customs export recovers Rs 14.11 million from diﬀerent companies KARACHI wAQAR AhMeD AnSARI www.customsbulletin.com

he Customs Exports has sent a Sinal notice to M/s Sarfaraz Textile and Export and recovered evaded taxes and duties amounting to Rs 14.11 million from different companies. Sources told Customs Today that Customs Export sent a Sinal notice to M/s Sarfaraz Textile and Export to deposit balance amount. The company imported six fabric printed machines from Italy and used wrong PCT. After investigations, the Customs Export sent a Sinal notice to the company asking it to clearing Rs 9.26 million within 14 days of receiving the notice. Sources said that during scrutiny of the import data another company, it was revealed that M/s Fatima Safdar Enterprises availed undue beneSits and concessions by importing different consignments and misusing the SRO 466. The company was founded involved in a tax evasion of Rs 5.29 million. After detecting the tax evasion, the Customs Exports them with Sinal notice to deposit the evaded amount within seven days. After receiving the notice, the management of the M/s Fatima Safdar

Enterprises deposited the evaded amount in the ofSicial account of the Customs Exports. On the other hand, the management of the M/s Ishtiaq Black Jet & Export also cleared Rs

2.22 million of taxes and duties. Sources told that M/s Ishtiaq Black Jet & Export availed undue beneSits and concessions and avoided paying taxes according to the customs by-

laws. The Customs Exports authorities issued them with a Sinal show cause notice. After receiving the notice, the management of M/s Ishtiaq Black Jet & Export deposited the

evaded amount of taxes. While another defaulter company M/s Sufyan and Sons deposited Rs 6.60 million against the Sinal notice No: 238/2017 issued on November 18, 2017.

1kg gold being smuggled from Dubai into peshawar seized PESHAWAR

IRFAn BAhADuR

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he Customs Air Freight Unit of the Bacha Khan International Airport has foiled an attempt of smuggling of 1kg gold from Dubai into Peshawar in Peshawar. The accused smuggler had packed the gold in his shoes but Customs staff was smart enough to trace the gold. Accused Tahir Ali hails from the district Swabi and an

FIR was lodged against him. Tahir was travelling from a private

airplane to Peshawar. The sources informed Customs Today that a tip-

off was given by Collector Customs Gull Rahman to Assistant Collector

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Customs Airport Asma Javid of the Bacha Khan International Airport about the possession of 1kg gold with said passenger. The value of the total seizure is Rs5.5million in the international market. Speaking to Customs Today, Assistant Collector Airport Asma Javid said no efforts will be spared to deal with the smugglers who not only cause the treasury losses but also bring defamation to the country. The Assistant Collector added that it was a second seizure of the current month and lauded the duty done by Customs Inspector and other AFU staff.