Wednesday, 20 December 2017

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ISLAMABAD

TARIQ DERYA

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ll the Customs Collectorates of North Region received an additional revenue of Rs137million of Customs Duty during the first two weeks of December Fiscal Year 2017-18.

According to details given by sources of the North Region, comprising Collectorates of Is-

lamabad, Peshawar, Sialkot and GilgitBaltista, that, during above said period, the North Region earned Rs654.78million against an assigned revenue target of Rs518.00million. The North generated Rs366.61million under the same head during the same period of corresponding FY16-17.

The sources told Customs Today that the Collectorate of Islamabad received Rs305.73million as Customs Duty (CD) against an allo-

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cated proportional revenue collection target of Rs212.88million. The Islamabad Collectorate got Rs92.85million extra revenue under the same head during the Oirst two weeks of December FY17-18 against an earmarked target.

The Customs Collectorate of Peshawar c o l l e c t e d Rs274.95million of Customs Duty during first two weeks of December FY17-18 against an allocated proportional revenue target of Rs272million.

MCC Islamabad’s Customs Stations earn Rs20m additional customs duty

DG Valuation revises customs value of zip sliders/zip runners

FTO postpones hearing of appeal filed by M/s Al-Moiz Industries

NAB reference against Dar: Four witnesses record statement

Gwadar Customs seizes smuggled Iranian juices, carpets worth Rs6.50 million

All the Customs Stations, working under the command of the MCC Islamabad | SEE pAgE 02 |

DG Valuation has revised the customs value of zip sliders/zip runners | SEE pAgE 03 |

FTO has postponed the hearing of a case filed by M/s Al- Moiz Industries | SEE pAgE 04 |

Four witnesses recorded their statements before an accountability court | SEE pAgE 14 |

Customs Collectorate has impounded different kinds of Iranian Juices | SEE pAgE 16 |

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Customs Tribunal reserve verdict on plea filed by M/s Indus Laboratory Wednesday, December 20, 2017

ISLAMABAD: A single bench of Customs Appellate Tribunal reserved verdict on a customs matter filed by M/S Indus Laboratory on Monday. The customs matter was filed against FBR field office. Muhammad Nasir Khan, Member Technical of Customs Appellate Tribunal earlier had heard references challenging announcements made by field offices of Federal Board of Revenue. The bench was hearing M/s Indus Laboratory and Zaman Ul Haq. Appellants, Zaman Ul Haq and M/s Indus Laboratory had challenged decision announced by appellants in all of the said cases and challenged MCC decisions before the tribunal relating to import of machinery by the appellants.

Islamabad

mcc Islamabad’s customs Stations earn Rs20m additional customs duty

ISLAMABAD

ISLAMABAD

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TARIQ DERYA

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ederal Service Tribunal disposed of a service matter pertaining to ‘withholding of two annual increments’ and issued directives to the Federal Board of Revenue to submit reply before the tribunal against ‘review’ complaints challenging administrative measures taken by the board concerning to its employees services.

FST benches comprising Syed Rafique Hussain and Nazir Saeed heard cases recently filed by M Zaman, M Waheed, Abdul Ghafoor, Muhammad Arshad Rahim, Ghulam Ishaq Kiyani, Muhammad Arif and Attique Ahmed Abbasi. The bench disposed of the case of ‘withholding of two annual increments’ submitted by Muhammad Arshad Rahim. Abdul Ghafoor had filed a review petition; Ghulam Ishaq Kiyani had filed petition seeking correction in judgment; Muhammad Arif and Attique Ahmed Abbasi and others on various other administrative acts of FBR. This bench meanwhile adjourned hearing on recently filed case by Sardar Ali. Ali had filed a case about seniority and had complained about board’s reckless conduct about this. He had prayed the tribunal to direct the board on the issue.

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ll the Customs Stations, working under the command of the Model Customs Collectorate of Islamabad, collected Rs20million extra Customs Duty during the month of November Fiscal Year (FY) 2017-18.

According to details given by sources of the Model Customs Collectorate (MCC) Islamabad that all the customs stations, comprising Islamabad Dry Port (IDP), Air Freight Unit (AFU), Car Section, Customs Bond Section, Unaccompanied Baggage (UB), Accompanied Baggage (AB), International Mail OfOice (IMO) and Rebate Refund showed good performance. During said period, the IDP earned Rs244.321million as CD while AFU Islamabad did Rs284.778million of CD whereas the UAB did Rs0.653million revenue of CD during above said period.

The sources notiOied CT that the AB Sections of the MCC Islamabad received Rs2.528million as CD whereas the IMO got Rs0.801million of CD and the Rebate Refund Section paid off Rs21.58million rebate refunds under the same head to exporters during the month of November FY2017-18.

Sources said that, during above said period, the C.Bond Section earned Rs0.036million of CD while the Customs Car Section did rev-

fST settles complaint filed by fBR employee Arshad Rahim

enue of Rs3.143million of CD. The sources told CT that, during said period, all stations of the MCC Islamabad generated Rs536.26million of total gross collection as CD while it received Rs514.68million total net collection of CD during November FY17-18.

Meanwhile, The Customs Accompanied Baggage (AB) Section of the

Model Customs Collectorate (MCC) Islamabad earned Rs90000 extra Customs Duty against an assigned proportional revenue collection target during the Oirst week of December Financial Year 2017-18.

According to details explained by Ali Asad, Assistant Collector AB, that the performance is satisfactory during the Oirst week of December Fi-

nancial Year (FY) 2017-18.

During the Oirst week of current month, the AB earned Rs550000 against an allocated proportional revenue target of Rs450000 of Customs Duty (CD). Ali Asad told CT that the AB has been earmarked a revenue collection target of Rs2.40million as CD for the month of December FY17-18.

‘now people aspire to be called civilised citizens by paying taxes’

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ISLAMABAD

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ollector of Customs Quetta Ashraf Ali said “It clearly indicates that now the masses do want to pay taxes and wish to be called the civilized citizens”.

He stated this while giving an exclusive interview to Customs Today.

He said that millions of rupees were collected by the customs authorities of the Quetta Collectorate dur-

ing the month of November Financial Year 2017-18. The Customs Stations Taftan, Chaman and National Logistic Cell (NLC) played a vital role in checking the activity of smuggling and other trafOickings by impounding Non-Duty-Paid vehicles and goods including foreign origin cloths, tyres, cigarettes, scraps, medicines, drugs , pan parags and electronic items.

The Collector Quetta Customs told CT “Initiatives such as routine checking not only aims to frustrate

the smuggling but also dismantles the smuggling groups. Ashraf Ali proudly quoted that “through our best networking we have been achieving our annual assigned revenue targets successfully. In this regard, the role of local businessmen, chambers of commerce Quetta and Chaman is really appreciable.

The Federal Board of Revenue (FBR) encourages and supports the efforts of anti-smuggling wings of Quetta Customs which are Oighting against the organized smuggling

through initiatives such as proper check-posts and snap mobile squads,” said the Head of the Model Custom Collector Quetta. The Collector Quetta also appreciated the performance of the customs ofOicers during the current Oinancial year of FY17-18. He especially named the Customs OfOicers, Zubair Shah, Additional Collector Anti-Smuggling Wing Quetta and Maqbool Baloch, Deputy Collector Preventive along with many other ofOicials of the AntiSmuggling Cell Quetta. He men-

tioned that the ASO Quetta took into possession 87 vehicles including NDP and Offending ones (vehicles carrying smuggling goods). He notiOied CT that the Customs ASO Quetta impounded 70 NDP vehicles worth Rs79.102million which shows a tremendous performance by the anti-smuggling cell during the month of November FY17-18. He told the correspondent that, during November FY17-18, the Quetta conOiscated various kinds of smuggling goods valued at Rs152.74million.

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SC grants bail to suspect in 20kg heroin smuggling case KARACHI: The Supreme Court has granted after arrest bail to suspect namely Afzaal, who was booked for attempting to smuggle 20 kilogram heroin in the garb of a consignment of lighting lamps. A two-member bench, comprising Justice Faisal Arab and Justice Sajjad Ali Shah, was hearing the bail petition in Karachi Registry. During the hearing, counsel for the Anti-Narcotics Force Habib Ahmed argued that the suspect and others were trying to smuggle 20 kilogram heroin from Karachi to Malaysia in the garb of a consignment of lighting lamps. However, the ANF officials intercepted a container at Karachi Port and recovered 20 kilogram heroin from it.

Suspect fled from court booked in smuggling of cigarettes

Wednesday December 20, 2017

Karachi

Dg Valuation revises customs value of zip sliders/zip runners

KARACHI

m B RAnA

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suspect namely Muhammad Ibrahim fled out from the Customs Taxation & Anti-Smuggling on Monday when he was produced before the court in a case of attempting to smuggled/ nonduty paid contraband foreign cigarettes from Iran to Karachi. According to the details, officials of the Antismuggling Organisation has produced suspects bus driver namely Bashir and cleaner Muhammad Ibrahim before the court for seeking physical remand, however, when investigation officer of this case was in court than suspect namely Muhammad Ibrahim fled out from the corridor of the court.

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Shc adjourns contempt of court hearing till Dec 22 KARACHI

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indh High Court has adjourned hearing of a contempt of court application against Deputy Collector of Port Muhammad Bin Qasim and East till Dec 22. The hearing was deferred by an appellate bench comprising Justice Munib Akhtar and Justice Omar Sial. The adjournment came as counsel for FBR and Collectorate, Sohail Muzaffar advocate stated that respondents have filed an application before apex court seeking stay of contempt proceedings before SHC. The counsel from Franklin Law Associates opposed the adjournment on behalf of the applicant/importers/petitioners saying that importers continue to face problems due to stuck up consignment imported legally. The bench after this statement put of further hearing till Dec 22.

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KARACHI

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he Directorate General of Customs Valuation has revised the customs value of zip sliders/zip runners through Valuation Ruling No 1233/2017 under Section 25A of the Customs Act, 1969. Earlier customs values of zip sliders/zip runners were determined vide Valuation Ruling No.889/2016 dated 27.07.2016.

Representations from local manufacturers M/s Lucky Zippers Industry were received wherein they stated that the price of zinc has increased in the international market therefore, the value of the subject goods, especially zinc sliders need to be realigned with international values. Therefore, this Directorate General initiated an exercise for re-determination of custom values of Zip Slider/Zip Runners (low end brands). Meeting with stakeholders was held on 09.11.2017. The stakeholders were requested to furnish invoices of imports during last three months showing factual value.

Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last four months showing the difference

in price (excluding duty and taxes) to substantiate their contentions.

Meanwhile, The Directorate General of Customs Valuation has revised the customs value of weighing scales vide Valuation Ruling No 1231/2017 under Section 25A of the Customs Act, 1969. The customs values of weighing scales were determined under Section 25-A of the Customs Act, 1969 vide Valuation Ruling No.1180/2017 dated 14.06.2017.

Being aggrieved with the valuation

m/s Lucky Zippers Industry were received wherein they stated that the price of zinc has increased in the international market therefore, the value of the subject goods, especially zinc sliders need to be realigned with international values

cement exports decrease by 27pc

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KARACHI

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he cement exports continued its declining trend and went down by 27.11 percent in Nov 2017 against the same period of the last year. The data released by the All Pakistan Cement Manufacturers Association states that exports from South-based mills took a major hit as these went down by 45.4 percent from 0.129 million

tonnes in November 2016 to 0.070 million tonnes in November 2017.

Exports from Northern region also decreased by 8 percent to 0.278 million tonnes last month from 0.350 million tonnes in the same month last year. However, the mills situated in north dispatched 2.96 million tones of cement locally in Nov 2017, which is 10.2 percent higher. The local dispatches in the south rose by 8.4 percent from 0.578 million tonnes in November 2016. The statistics

show that drop in exports continued in the first five months of this fiscal year as the exports came down by 18.22 percent to 2.079 tonnes from 2.542 million tonnes during the corresponding period of the last fiscal year. The cement industry is worried over the complacency shown by economic planners towards the cement sector.

The cement sector has so far withstood the impact of decline in exports due to a robust growth in the domestic market.

ruling, some importers Oiled revision petitions under Section 25D of the Customs Act, 1969 before the Director General, Customs Valuation, Karachi. The Director General vide Order-in-Revision No.401/2017 dated 12.10.2017 remanded back the case to conduct comprehensive valuation exercise whereby the price variation due to capacity and other related aspects may be investigated thoroughly and to re-determine the customs values.

pfA first convention on unjab Food Authority (PFA) has arranged an international convention on “Food Safety and Nutrition in Pakistan” on Wednesday at a local hotel. According to a spokesman of PFA, local and foreign food experts will highlight issues of preservation, balance and standards of food. People from various walks of life would attend the event.

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MoU signed for Speedo Bus Service Wednesday December 20, 2017

Lahore

BAHAWALPUR: Deputy Commissioner Bahawalpur Rana Muhammad Saleem Afzal has signed a Memorandum of Understanding (MoU) with Daewoo Pakistan for Bahawalpur Urban Transport (Speedo Bus Service). The service would get functional shortly which would provide low-cost transport facility to masses.

The bus service would operate between Bahawalpur and Lodhran. Bus stops have been set up Baghdadul-Jadeed Campus, Chak 10-BC, Melay Wali Gali, Technology College Chowk, One Unit Chowk, Sadar Pully, Farid Gate, Bahawalpur Zoo, General Bus Stand, Bindra Pully and Karachi Mor.

customs court seeks investigation challan of smuggling accused LAHORE

m ImRAn mEhAR

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he Special Federal Court of Customs Taxation and AntiSmuggling has asked the investigation team of customs investigation and prosecution to complete an investigation challan of the accused in the next hearing of the case of money laundering. The court has approved a 14-day judicial remand of the accused arrested in the currency smuggling case. An accused Faisal Hussain was held by the customs preventive authorities at the Allama Iqbal International Airport Lahore. The customs authorities, during a search of his luggage, found a huge quantity of currency. sAccused Faisal Hussain was trying to smuggle currencies of Rs2million. The customs authorities

contempt of court: Lhc seeks reply from fBR chief contempt of court was filed against the Chairman, Federal Board of Revenue (FBR), in the Lahore High Court (LHC). The court has issued a notice to the Chairman, Federal Board of Revenue (FBR). Justice Shams Mehmood Mirza of the Lahore High Court (LHC) heard the appeal filed by complainant Fizan Ramzan in which counsel for the appellant argued that the Federal Board of Revenue (FBR) declared the complainant as defaulter and issued him a notice of Rs5.8million rupees. For being saved from the fine, the appellant paid Rs5.8million to the Federal Board of Revenue (FBR). After this, the Inland Revenue Appellate Tribunal has decided the case of fine in favor of appellant but now the Federal Board of Revenue (FBR) is reluctant to pay the amount of Rs5.8million to the complainant. –CB Report

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found dollars, Euros, Pounds and Pakistani currency in his luggage. The customs investigation team had presented him before the customs court for getting his physical remand to investigate more on the issue that was granted by the court. After the completion of the remand, the customs team had presented him again before the court and told it that all the investigation has been done so the court can send him to jail. The customs preventive apprehended the accused who was making an attempt to smuggle said currencies from Lahore into Europe. The customs investigation team had presented him before the court of special judge of customs taxation and anti-smuggling Shakeel Ahmad and asked for his judicial remand for14 days. The customs has registered a case against the accused and launched an investigation as well after conOiscating the cell phones that he was trying to smuggle.

fTo postpones hearing of appeal filed by m/s Al-moiz Industries

LAHORE

SAJID nAwAZ

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he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Oiled by

M/s Al- Moiz Industries against the Large Taxpayer Unit (LTU) until the next date of hearing. The same was heard last week and was put off for the next date. According to the details, FTO Advisor Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the LTU had failed to satisfy the

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appellant in refund case.

He added that the LTU collected excessive tax from the company during the last three years. The petitioner approached the department many times but it failed to pay the refunds after the passage of a reasonable time. At the end, the appellant decided to approach the Federal Tax Ombudsman (FTO) seeking interference in this case.

The counsel appealed the FTO advisor to direct the LTU to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the LTU should make audit of the cases and release the extra amount collected by it from the taxpayer. He also said in the argument that appellant should submit all relevant record to the LTU. After hearing the arguments from both sides, FTO Advisor Mian Munawar Ghafoor adjourned hearing the case of M/s Al- Moiz Industries until next date for further hearing and directed the parties to appear on said date to present arguments in the case.

customs Afu recovers alcohol, mobile Railways allocates 28 luxurious saloons accessories from Lahore Airport In addition eight saloons have s many as 28 luxury saloon

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he Customs ofOicials have conOiscated as many as 12 alcohol bottles and dozens of mobile phones from passengers travelling via different Olights during raid at Allama Iqbal International Airport during different operations.

Sources told Customs Today that the customs ofOicials conducted operations in different Olights arrived from different countries.

Flights were coming from Dubai to Lahore, Turkey to Lahore, Jeddah to Lahore and Muscat to La-

hore. Customs took action in Pakistan International Airlines (PIA) flights, Turkish Airways, Gulf Air and Saudi Arabian Airlines. During actions in these flights customs staff recovered 12 bottles of alcohol. Mobile phones were also confiscated from different passengers.

Customs allowed all passengers to go after confiscation of alcohol bottles from their possession. Customs has also confiscated 1 LED of 32 and 2 LED,s of 43 inches from two passengers. –CB Report

coaches of the Pakistan Railways have been allocated for travel of VIPs across the country.

Two highly luxurious coaches have been allocated for the Prime Minister while Oive coaches have been allocated for the Railway Minister, sources in the Ministry of Railways. They said that two saloons have been allocated to the federal government while one saloon each has been allocated to the Governor Sindh and Sindh government, Governor Balochistan, Governor Punjab, and Punjab government.

been allocated for the Railway Headquarters Lahore, in which one each will be marked to Chief Executive OfOicer/General Manager (BS-22) Additional General Manager BS-21, Inspector General Railway Police, Federal Government Inspector, Chief Operating Superintendent and three saloons have been allocated for Principal OfOicers, they added.

They said that the Principal OfOicers of Pakistan Railways were entitled to travel at these saloons/inspection coaches only when they were traveling on duty. –CB Report

court remands smuggling accused to prison for 14 days

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LAHORE

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he Special Federal Court of Customs Taxation and AntiSmuggling has granted a 14day judicial remand of an accused apprehended in a currency smuggling case. Accused Faisal Hussain was arrested by the customs pre-

ventive authorities at the Allama Iqbal International Airport Lahore.

The customs authorities, during a thorough search of his luggage, found a huge quantity of currencies.

Accused Faisal Hussain was trying to smuggle currencies of Rs2million.

The customs authorities found dollars, Euros, Pounds and Pakistani currencies in his luggage.

The customs 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.

After the completion of the remand, the customs team had presented him again before the court and told the court that all the investigation has been done so court can send him to jail. The customs preventive held the accused while making an attempt to

smuggle currencies from Lahore into Europe. The customs preventive team intercepted the accused at the airport and recovered a huge amount of currencies of different countries. The customs investigation team had presented him before the court of special judge of the customs taxation and anti-smuggling, Tahir Sabir, and asked for his judicial remand for 14 days.

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LAHORE

m hAYAT

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he Punjab Planning and Development Department has launched “the Punjab Economic Report 2017” which reveals the development of energy, health, education and infrastructure sectors in Punjab. The report also highlights the challenges and the way towards the economic growth.

Dr Ayesha was the chief guest on this occasion whereas the Provincial Minister for Planning and Development Nadeem Kamran, Minister for Environment Begum Zakya Shahnawaz, Minister for Population Mukhtar Ahmed Bhart, Minister Mines and Mineral Sher Ali, Chief Secretary Capt. Zahid Syed Senior Economist and Consultant of Hafeez Pasha, Chairman P & AMP; D Jahanzaib Khan, Secretary P& AMP; Iftikhar Ali Sahoo, Dr. Turab Hussai, Dr Ejaz Nabi, , Director PERI Dr. Mumtaz Anwar, Country Director World Bank Patchamuthu Illangovan, government officers and representatives from academia were also present on the occasion.

Addressing the ceremony, Punjab Finance Minister Dr. Ayesha Ghous Pasha said that “Punjab needs to harness opportunities and it should not be shy of challenges”. She further said that Punjab is a role model for other provinces, adding that “the Punjab Economic Report will help us to enhance our capacity in policy making and Development.”

Finance Minister Dr. Ayesha Pasha focused on

the importance of the province in playing a crucial role in improving the lives of the citizens. She reiterated the signiOicance of evidence-based policy making and was of the view that this report would be beneOicial for devising strategic development goals. She explained how the province was making progress in achieving the targeted growth rate through improving the energy generation, fuel mix, and security situation of the province. She also highlighted that under the Growth Strategy framework, 2-mil-

asha hous p g a h s e ds to Dr. Ay ab nee j n u p at “ es and said th tuniti r o p p ss o shy of harne ot be n d l u it sho nges ” challe

lion youth would be provided with adequate education and skills to ensure their employability. Provincial Minister for P& Malik Nadeem Kamran, while appreciating the efforts of PERI and P& D on the completion of PER, hoped that the report would assess the current economic situation, key performance indicators and the strengths of the province and also assist the government by identifying key areas where the province needs more attention. Highlighting the Punjab government’s commitment to economic prosperity, he stressed that growth must be pro-poor therefore every effort is being made to optimally utilize the limited Oinancial resources purely for the welfare of the underprivileged segment of the society Dr. Haeiz A. Pasha, former federal minister highlighted that Punjab was on track to achieving a growth rate of 6% by the end of the year which would be the highest growth rate in eleven years. He said that Punjab has shown a growth rate of 5% in major crops in 2016-17, which was the highest in the last ten years. He emphasized that Punjab needs to focus on providing employment to the youth of Punjab in order to take advantage of the youth bulge in Punjab. He also highlighted the need to develop secondary cities in Punjab as part of its Urban Development strategy in order to reduce the burden on existing cities.

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Wednesday, December 20, 2017

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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

fallout of devaluation of rupee

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n the aftermath of recent talks with the visiting officials of the International Monetary Fund, the government has allowed devaluation of the local currency, but opened the floodgates of inflation, mismanagement and financial crisis. Since the government showed its leniency toward devaluation, the rupee has been sliding for the fourth consecutive day in the inter-bank market as it reached at an all-time low to close at Rs 11.5 to a US dollar. The rupee has shed at least five percent of its value in the open market where it closed at Rs 112. The financial experts and senior bankers opine the State Bank will have to come to the rescue of the rupee without ifs and buts; otherwise it could go as low as Rs 120 a dollar in weeks. The nation is already bearing the brunt of low economic progress, financial constraints, rising tax rates and hidden inflation. The writ of the government is invisible in the markets of consumer items and edibles and everyone is trying to wash hands in the running rivers of corruption and profiteering. The strategy to lower the value of rupees always met with failures in the past and the current policy will also meet the same fate. The government had not been tired of declaring that it would not seek another bailout package from the IMF, but the current measures show that the nation is going to be mortgaged again to the foreign financial institutions. It is hard to understand why the governments in Pakistan always prefer shortcuts or are fond of makeshift arrangements to resolve serious issues. A small shop needs management, but the government either lacks vision and capacity to take solid steps for the resolution of the problems. In a country where the writ of the government is week and corruption is rampant, these kinds of ventures plunge the country into further chaos. It is absolutely unfair to deprive the value of the people’s earnings overnight without any warning. It is unfortunate the policymakers, who are drawing hefty salaries and perks at the cost of taxpayers’ money, have no capacity to manage economic or financial affairs. To cull the rupee value means to cull the economy as all the gains of macroeconomics are going to be lost in coming months with injudicious decision of devaluation.

pm’s desire to purge fBR P

LAHORE

DR AfTAB AfZAL

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rime Minister Shahid Khaqan Abbasi’s directives to purge the Federal Board of Revenue and the Pakistan Customs of the corruption officials have apparently gone unheard.

The media reports suggest key positions in the board and the Customs have still been occupied by the officials having embarrassingly corrupt past. Earlier, Abbasi directed the FBR chairman to focus on the officers heading field formations and strategic units of the FBR and submit a detailed report about the recent appointments. According to reports, the board has

been facing the challenges of corruption and questionable behavior in its hierarchy and the prime minister’s move is to purge the department of the corrupt elements. Earlier, the previous government of prime minister Nawaz Sharif had initiated a large-scale operation against corrupt officers in the FBR. The task to purge the FBR and the customs had been entrusted on the Federal Investigation Agency.

A joint report of the Federal Investigation Agency and two other agencies had identified at least 300 senior officers of various designations and recommended their suspension or termination from the services.

However, the latest report met

with the same fate as was the fate of the reports in the past. In the list of corrupt officers, there were blue eye boys having strong political backgrounds and their names were struck off the list at the end, making the whole operation a futile exercise.

There is no denying the fact that when politically strong officials dominate the departments, the honest officials find refuge in corners. A game of hide and seek is going on in all the government departments since independence. Unless the departments are depoliticized, corruption will stay with all its might. The nation has the narrow tax base and all the efforts made at various levels to en-

hance tax net have ended in fiasco. The prime minister and the FBR chief are actively holding meetings to streamline the tax affairs and rid the department of the corrupt elements. But keeping in view the ground realities, they both have limited options to move forward.

The operation started with zeal and zest had to be suspended because of political reasons. It will not be a surprise for the prime minister when he is told that no action is being taken against a number of corrupt officers. There is a limited mandate of the present government and the nation will have to wait until the next government how it would deal with corruption.

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FST seeks complete record on complaints filed by FBR employees ISLAMABAD: Federal Service Tribunal issued fresh directives to submit relating record of cases being contested by employees of FBR at tribunal.

FST chairman Justice (r) Sayed Zahid Hussain and and Dr Nazir Saeed heard three cases filed by M Sulaman Javed, Muhammad Nawaz, Muhammad Shakeel Akhtar and others.

Muhammad Sulaman Javed had prayed to tribunal to ensure implementation over its already given decision; Muhammad Nawaz had challenged dismissal from services, and Muhammad Shakeel Akhtar had challenged removal from services. Tribunal’s bench had recently also reserved decision on promotion cases filed by M Iqbal, Habib Ahmed, Tariq Tanveer and Noreen Safia.

Ihc reserves verdict of customs matter filed by m/s hasas Engineering

Wednesday December 20, 2017

National

customs Tribunal directs parties to submit record of cases by next hearing

ISLAMABAD

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ustice Aamer Farooq of IHC reserved decision on a customs matter involving 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. The bench reserved decision after hearing arguments in the case with submission of record. 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 office had issued a recovery notice to the company which did not hold lawful grounds. The ap-

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KARACHI

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m B RAnA

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he Customs Appellate Tribunal has issued fresh directives to M/s Klaguardia Logistics, M/s Trade Master and the field offices of the Federal Board of Revenue to submit record of cases by next date of hearing.

A division bench of the tribunal comprising Members Tribunal, Syed Muhammad Anwar and Muhammad Nasir Khan heard the matters submitted by M/s Klaguardia Logistics and M/S Trade Master against Model Collectroate of Customs, Islamabad. The tribunal also heard cases filed by M/S Kohinoor Trader.

Counsels from M/S Five Star Trading appeared before the bench and sought time for preparation of the case. Customs appellate tribunal’s Member Technical, Ziauddin Wazir had heard the cases of Raja Nabeel, Waqas Enterprises, Arshad Khan and Musawir Shah had filed the cases last week.

Raja Nabeel had filed the cases against Directorate of Intelligence

and Investigation, Islamabad.

Other three appellants had filed their cases against Model Collec-

torate ofCustoms, Islamabad.

The appellants had filed cases against Directorate General of Cus-

toms Intelligence and Investigation Islamabad and Model Collectorate of Customs, Islamabad.

customs values of rear engine intercity buses revised pellant 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. Meanwhile, Islamabad High Court benches reserved decision on a customs case and dated in office hearing of other cases during first week of December involving field offices of Federal Board of Revenue (FBR). In this regard, IHC bench comprising Justice Shaukat Aziz and Justice Mohsin Akhtar reserved decision on M/s Pakhtoon’s customs case. The appellant had filed the case against Model Collectorate of Customs, Islamabad.

The bench also directed FBR field office, MCC and the appellant to submit record on the case in order to assist the court.

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he Directorate General of Customs Valuation has revised the customs values of rear engine intercity buses through Valuation Ruling No 1230/2017 under Section 25-A of the Customs Act, 1969.

A representation was received from M/s Master Motor Corporation (Private) Limited wherein they requested for determination of customs values for rear engine intercity buses imported from China as the phenomenon of under invoicing has been prevalent in the import of the aforementioned buses. Therefore, an exercise was initiated in this Directorate General for determination of customs values of the subject vehicles under Section 25 A of the Customs Act, 1969.

A meeting was held on 14.09.2017 with different stakeholders including the representatives of M/s Master Motors Corporation (Private) Lim-

ited, M/s Hino Pak Motors (Private) Limited, M/s Al Haj Hyundai (Private) Limited, M/s Gandhara Motors (Private) Limited, and M/s Universal

Auto Engineering (Private) Limited.

They were requested to submit import invoices of the last three months showing factual values. Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copies of Contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate their contentions on customs values. Another meeting was convened on 9.11.2017 as the stakeholders did not provide the above-mentioned documents except M/s Master Motor Corporation Pvt. Ltd and M/s Universal Auto Engineering Pvt. Ltd who provided certain documents in support of their claims.

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92% wheat cultivation target achieved Wednesday December 20, 2017

National customs north Region generates Rs360 million more sales tax

FAISALABAD: Around Ninety-two per cent target of wheat cultivation has been achieved in the district and the remaining would also be accomplished soon.

In a statement issued here Friday, Deputy Director Agriculture (Extension) Faisalabad Afzal Warraich said that the government had set wheat cultivation target of 703,000 acres of land for Faisalabad and out of this target, wheat crops had so far been sown on 645,000 acres of land in the district.

He advised farmers to complete wheat cultivation immediately to get better production.

49 Inland Revenue oďŹƒcers nominated for 23rd Smc

ISLAMABAD

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ISLAMABAD

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he Customs North Region earned over Rs360million of extra Sales Tax against an assigned revenue target for the month of November Fiscal Year 2017-18. The sources notified that, during the month of November Financial Year (FY) 17-18, the North Region, comprising collectorates of Islamabad, Peshawar, Samberial and Gilgit-Baltistan), generated Rs1645.90million as Sales Tax (ST) whereas it was assigned a target of Rs1278.74million. The North Region received Rs1264.23million of ST during corresponding November FY 1617. The Collectorate of Islamabad collected Rs680.95million against an allocated revenue target of Rs421.81million of ST while it got Rs431.79million under the same head during the previous November FY1617. The Collectorate of Peshawar generated Rs681.18million against an earmarked target of Rs646.86million.

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customs Inspector Jabbar to retire on march 31 bdur 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. Meanwhile, Muhammad Tahir, 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 April 30, 2018. –CB Report

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he Establishment Division has sought panel of Inland Revenue Service officers of BS-19 for 23rd Senior Management Course (SMC). The SMC is scheduled to commence from February 26, 2018 to June 15, 2018 at National Management College, Lahore and National Institute of Management, Islamabad, Karachi and Peshawar respectively. Nominations by FBR will be made in the order of seniority. The officers of (IRS/BS19) as per (Annex-I) are requested to provide the latest annual medical examination report as required vide para 2(v) of Establishment Division O.M.

dated 04.12.2017 by 18th December, 2017 at Fax No.051-

9205407, by courier or delivery in person, to the undersigned for

onward submission to Establishment Division.

Adjudication-II recovers 4.29 from m/s golo woolen Textile T

KARACHI

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he Custom Adjudication-II has served a Oinal notice on a defaulter named M/s Nabeel and Company and recovered Rs 4.29 million from M/s Golo Woolen Textile Karachi.

M/s Nabeel and Company was allegedly involved in tax evasion.

The company imported refrigerator parts, including condensers on September 14, 2017 and used the wrong PCT heading. The consignment was cleared by Examiner Shahid Ali Soomro.

After a careful investigation, the Customs Adjudication-II issued a Oinal notice to the company to clear the outstanding amount of Rs 5.20 million. Source told Customs Today that another company M/s Golo Woolen Textile Karachi got cleared a consignment

of cotton and plain silk fabric on September 2 and evaded tax amount of Rs 4.29 million. After the investigation, Customs Adjudication-II served a show cause notice on the company on Sep-

tember 18, but it failed to clear the outstanding tax amount. Collector Customs Adjudication-II Tahir Qureshi issued a Oinal notice to the company on October 6, 2017. After receiving the notice,

the company deposited Rs 4.29 million in favor of the Customs Department. Source said Collector Customs Adjudication-II Tahir Qureshi is investigating 12 more cases during the current month.

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PIA introduces Umrah Executive Economy class for Jeddah & Madinah KARACHI: For the convenience of its Umrah passengers, the Pakistan International Airlines (PIA) has introduced Executive Economy Class for Jeddah and Medinah bound flights to and from Pakistan. A spokesman of the national flag carrier said that the PIA passengers traveling for Umrah can now avail the facility of Executive Economy Class where they will be served Business Class Cuisine and will have an added advantage of five Kgs excess allowable baggage free of cost. Keeping in view the demand, PIA has placed Extra Umrah flights for the next two weeks; with four extra flights from Karachi, three from Islamabad, two from Lahore and one from Multan.

Dg Valuation revises customs values of honey vide VR no 1232/2017 KARACHI

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he Directorate General of Customs Valuation has revised the customs value of honey vide Valuation Ruling No 1231/2017 under Section 25A of the Customs Act, 1969. The Director General Customs Valuation vide OrderIn-Revision No. 390/2017 dated 20.9.2017 directed to conduct the exercise afresh for re-determination of values of various brands of honey, particularly focusing on the points agitated by the petitioners, and notify the same under Section 25-A of the Customs Act 1969. Hence, an exercise was initiated by this Directorate General to determine the customs values of honey.

A meeting for re-determination of cus-

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toms values of honey various brands was held on 17.10.2017. The commercial importers participated in the scheduled meeting and presented their view point. The representative of M/s Asian Consumer Care stated that they are importing Dabur brand honey from India and its value in the existing Valuation Ruling No. 1152/2017 dated 08.05.2017 is notified very close to value of another well-known brand Langnese Natural Honey whereas in markets there is a noticeable difference of prices in both brands which should be rationalized in fresh valuation ruling. He also presented embassy verified documents in support of his contentions. The representative of M/s Friends International stated that they are importers of Manuka Honey from New Zealand and customs value of Manuka Honey notified vide valuation ruling is very high than its actual price prevailing in international markets.

National

BkIAp generates comparatively slight extra revenue

10.68m cotton bales reach ginneries, arrivals up by 5% MULTAN

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eed cotton (Phutti) equivalent to 10.68 million or 10,685,981 bales have reached ginneries across Pakistan till Dec 15, 2017, registering an increase by 5.3 per cent compared to corresponding period of last year. According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA), out of total arrivals, 10.07 million or 10,074,255 bales have undergone the ginning process. Arrivals in Punjab were recorded at 6.5 million or 6,549,612 bales recording a percentage increase of 1.63 per cent. Arrivals in Sindh were recorded at 4.13 million or 4,136,369 bales, some 11.70 per cent higher compared to corresponding period of last year. Total sold out bales were recorded at 9.06 million (9,062,641) bales including 8.84 million (8,849,911) bales bought by textile mills and 213,630 by exporters. Exactly 1.62 million (1,623,340) bales were still lying with the ginneries as unsold stock. Sanghar district of Sindh continued to remain on top with regard to cotton arrivals as ginning factories in the district received Phutti equivalent to 1.3 million or 1,373,389 bales till Dec 15, 2017.

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KARACHI

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he Bacha Khan International Airport Peshawar has collected an amount of Rs76.77million revenue in November of current Financial Year (FY) against Rs66million generated in November of Previous FY2016-17.

This was stated by Assistant Collector Airport Asma Javid while talking with Customs Today on Thursday. The Assistant Collector termed it a vital necessity to implement the customs bylaws on every single entity which goes across abroad or enters into our territory for application of duties and taxes.

The Assistant Collector added that several seizures have been made in these last three months on vital tip-offs given by Collector Customs which earned a great deal of revenue for the national exchequer.

Regarding the current statement of the Bacha Khan International Airport, the Assistant Collector said that Rs29.06million Customs Duty was collected up to November and Rs23.68million was added as Sales Tax during November of current FY2017-18. In the same way, an

Wednesday December 20, 2017

amount of Rs20.96million was generated under the head of all Withholding Taxes in November including Rs2.93million which was received from ST on VM palm oil.

The BKIAP has performed smartly by showing progress in the revenue collection. At the end of current Fiscal Year, the duty collection will deOiantly exceed the target of achievement. About customs regu-

lations at airport, the assistant collector informed CT that active staff of the Pakistan Customs has been posted who performs smart duties in order to minimize the risk of loss to the national exchequer. No efforts will be allowed to eliminate the risk of smuggling for which equipments have also been upgraded and a number of ofOicers have been enhanced at the air freight units.

Shc adjourns hearing of IT case filed against fazal Textile

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KARACHI

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he Sindh High Court (SHC) has adjourned the hearing of an income tax reference application Oiled by Commissioner Inland Revenue Zone-III, Large Taxpayer Unit challenging impugned judgment of the Customs Appellate Tribunal over the recovery of disputed amount from M/s Fazal Textile Mills Limited. A two-member bench headed by Justice Aqeel Ahmed Abbasi was hearing the petition.

Earlier, counsel for the petitioner stated that the suspect is a taxpayer public limited company and is en-

gaged in the business of manufacturing, selling, buying and dealing with all types of yarn and knitted fabrics. According to the petitioner, the taxpayer Oiled return of income

for the tax year 2010, however, during the examination department found the same as erroneous and prejudicial to the interest of revenue and amended the same under sec-

tion 122 (5A) liable income of Rs 3,308,286 and balance tax payable at Rs 14,108,386, therefore, taxpayer was issued notice for recovery of tje said amount.

He argued that being aggrieved, taxpayer approached appellate tribunal which decided the issue of WWF (workers welfare fund) in favour of the department and the issue of addition on account of disposal of assets at the favor of taxpayer. Citing M/s Fazal Textile Mills Ltd as respondent, counsel pleaded the court to set aside impugned judgment of the appellate tribunal and pass an order in favour of the applicant.

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World Customs

Wednesday December 20, 2017

Japan finalizes income tax reform plan TOKYO: A fiscal 2018 tax plan endorsed by Japan’s ruling parties settles details of a shift in income tax burdens while recognizing that further adjustments will have to come down the road as the labor market charges.

The tax panels of the ruling Liberal Democratic Party and junior partner Komeito adopted the outline’s general framework in a conference Tuesday.

“We won acceptance on all points,” Yoichi Miyazawa, chair of the LDP’s tax commission, told reporters after the meeting. The ruling coalition is set to formally approve the plan.

china’s silver cod craze drives smuggling upsurge

SA police arrest pair for car theft along Limpopo River CAPE TOWN

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BEIJING

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hina’s demand for high-end cod is causing a massive rise in smuggling as supply tightens, according to a respected industry research platform.

Legal imports of what’s termed “silver cod” will total 1,000 tons in 2017, up from 633 tons in 2016, but smuggled imports could be as high as 2,000 tons, according to Dongpin Zhan Lue (Frozen Foods Strategy), which also points to an increase in average prices from CNY 220 (USD 33.22, EUR 28.26) per kilogram to CNY 300 (USD 45.31, EUR 38.53) per kilogram for imported silver cod. In China, silver cod has become a catch-all term for everything from common cod to toothOish, with opportunistic vendors marketing “silver cod” as a health food and a delicacy. Chinese customs data shows

pakistan, Iran expect to upgrade fta early next year akistan’s Commerce Ministry says that talks with Iran towards an uprade to their free trade agreement are at an advanced stage, with a deal possible by the first quarter of next year.

A third meeting of the Trade Negotiation Committee, to discuss improvements to the Pakistan-Iran FTA (PIFTA), was held on November 2017. Pakistan’s Commerce Ministry said representatives reached an agreement on several areas of an update, including in the area of goods trade liberalization, with a text on these areas being finalized. The initial deal included tariff concessions from Pakistan on 338 Iranian tariff lines, while Iran agreed to offer concessions for 309 tariff lines. It was agreed that provisions expanding the list of import duties removed or reduced under the agreement should be included on January 31, 2018. –CB Report

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Chile to be China’s top supplier of silver cod in the Oirst nine months of 2017. Chile shipped 199,783 tons worth USD 5.5 million (EUR 4.7 million), followed by New Zealand’s 131,298 tons worth USD 4.7 million

(EUR 4 million). Argentina was third with 92,571 tons of exported silver cod worth USD 1.1 million (EUR 935,000) followed by France with 52,571 tons worth USD 1.08 million (EUR 918,400).

customs foil attempted smuggling of Ecstasy from netherlands

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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 OfOice 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 ofOicers 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 black packets containing multi-coloured pills were found. –CB Report

outh African police have arrested two men along the Limpopo River in relation to cases of cross border car theft. The duo, arrested last Saturday afternoon, are believed to be part of a 13 “The police in Palaborwa and a dedicated provincial team is still pursuing 11 more suspects who stole six brand new cars at Palaborwa Ford along the Palm Avenue. The suspects broke into the garage and gained access into the ofOice with vehicles’ keys and sped off with six vehicles,” he said. Lt Col Netshiunda said the vehicles included a white Ford Ranger Wild trek 4X4 3.2D/C, a silver Ford Ranger Wild trek 4X2 D/C , two white Ford Everest 4X2 XLT and two Gold Ford Ranger single cabs. He said the matter was reported to police, who recovered two

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of the vehicles at Tshiledzani Village in Masisi where Maphosa and Dzuguda were arrested.

“Three other cars were recovered at the Limpopo River which borders South Africa and Zimbabwe,” he said. Lt Col Netshiunda said Maphosa and Dzuguda will soon appear at the Masisi Periodical Court.

In a related incident, he said they were still pursuing a Zimbabwean man, Frackson Ndou (34), in connection with a murder case in Burgersfort area. Recently, South African authorities launched an operation “Vala Madi” along the borderline with Zimbabwe following an upsurge of cross border car thefts between the two countries. The cars are destined for Tanzania and Malawi, while others Oind their way to the local market. This year alone, South African police recovered more than 20 state-of-the-art vehicles at various illegal crossing points along the Limpopo River.men syndicate that steals vehicles from the neighbouring country.

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 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 deOicit in the agriculture sector stood at $3.17 billion for the eight-month period. The deOicit 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 official noted that the rise in trade deficit is due to the decrease in the export of apples and pistachios, and the increase in the import of staple foods such as rice, sunflower oil, palm oil, soybean, red meat, field corn, bananas, sugar, barley and soymeal. Close to 68,680 tons of pistachios worth $628 million were exported during the eight-month. –CB Report

Russia offers to sell gas to Saudi Arabia from Yamal Lng

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MOSCOW

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resident Vladimir Putin said on that Russia was ready to sell gas to Saudi Arabia after he launched the Oirst loading of liqueOied natural gas (LNG) at the Novatek-led Yamal LNG project in the Arctic. Russia is the world’s biggest

gas producer, but most of its exports are via pipeline rather than LNG, a super-cooled fuel that can be transported by ship. It is the world’s seventh biggest LNG exporter.

“Buy our gas and you’ll save oil,” Putin told Saudi Energy Minister Khalid al-Falih, who also attended the launch ceremony in Arctic tundra, according to a report by Interfax news agency.

“If we continue to work the way we do, we will turn from rivals into partners. All beneOit from joint work,” he said. Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries, and Russia worked together on a deal between OPEC and other producers on cutting oil output until the end of 2018 to curb a global crude supply glut. .

Putin and Saudi Arabia’s King Salman, who visited Moscow in October, had agreed on joint investment deals worth several billion dollars, a boost to the Russian economy that has been battered by low oil prices and Western sanctions.

Leonid Mikhelson, ranked Russia’s richest businessman and head of Novatek which has a 50.1 percent stake in Yamal LNG.

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Three ships take berth at Port Qasim KARACHI: Three ships, MSC Lila, Al Jassasiya and Black Pearl carrying Coal, LNG and LPG Mix took berths at PIBT, EETL Terminal and Engro Vopak Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority.

Meanwhile four more ships with Containers, Canola Seeds, Coal and Condensent also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was observed at the port at 77% on Thursday where total ten ships are currently occupying berths to load/offload Containers, Canola Seeds, Clinker, Furnace oil, LPG Mix, Coal and Palm oil during last 24 hours.

kpT shipping intelligence report he Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours. ALONG SIDE (Bulk Oil Pier) OP-I Densa Alligater D. Jet Oil GAC 12/12/17 OP-II UACC Ibn Al Haitham D. Mogas Alpine 12/12/17 OP-III SCF Pioneer L. Naptha Alpine 13/12/17 ALONG SIDE (East Wharves) Yangtze Ambition D. Gen. Cargo Facilities 14/12/17 5Kapta Mathios D. DAP Bulk-Sh. 10/12/17 10/12 Northern Dependant D. L. Cnt. Riazeda 13/12/17 11/12 Glory Trader D. Meal OC-Services 28/11/17 12/13 Liberty Pride D. Vehicles Al Hamd 13/12/17 15/16 Pacific Voyager D. Meal MWA Shipcare 07/12/17 ALONG SIDE(P.I.C.T) Berth Vacant… ALONG SIDE(PDWCP): Sapt-3 Mol Endowment D. L. Cnt. Mol Pak 14/12/17 Along Side(West Wharves) Berth Va-

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Ports & Shipping

Texan ports dominate uS crude export loadings

port of Baltimore handling more cargo than any previous year ollowing were the Movements of Ships at Karachi Port Trust (KPT) during last 24 hours, ending at 0700 hours.

SHIPS SAILED: SL Teal Intrepid Republic Bao Success Hyundai Brave Ocean Hero Ten Yoshi Maru Xing Rong Hai Hansa Neuburg Kota Layar KMTC Mumbai Malhari SHIPS BERTHED: Hansa Neuburg Container Ship Ocean Hero General Cargo MOL Endowment Container Ship Ginga Puma Tanker SL Teal Tug Liberty Pride Car Carrier Malhari Tanker Yangtze Amition General Cargo EXPECTED SAILING DATE Liberty Pride. –CB Report

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NEW YORK

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ed by the port of Corpus Christi, Texan ports continue to expand their dominant role in loading US crude oil export cargoes, shipping out 79pc of total crude export volumes in the Oirst 10 months of this year, up from 69pc last year, according to a research note from shipping association BIMCO this week.

“Corpus Christi has since 2016, when it exported 24pc of US seaborne crude oil, extended its lead and has developed into the largest crude oil export port in the US by far”, said BIMCO. In the Oirst 10 months of this year Corpus Christi raised its market share year-on-year from 24pc to 33pc, said BIMCO. Rounding out the top three US ports by crude exports so far this year are the Texan ports of Beaumont and Houston, which respectively exported 21pc and 15pc, said BIMCO.

Wednesday December 20, 2017

The port of Gramercy, located in neighboring Louisiana, came in fourth and exported 14pc of total volumes in the 10-month period, said the shipping group. While total US crude export volumes have nearly doubled this year, volumes coming out of Texas have almost tripled. The Texas loading area ramped up its export of crude oil by 186pc for the Oirst 10 months of this year over the same period in 2016, said BIMCO. Total US crude exports in the time period rose by 90pc to

about 900,000 b/d, according to data from the US Energy Administration (EIA). The increase in exports has come amid plentiful light crude supply in the Gulf coast and a shift in Chinese buying trends away from producers in the Middle East toward those in the Atlantic basin, including the US. The port of Corpus Christi will have VLCC accommodating terminals by the end of 2018, said BIMCO, suggesting the port’s prominence in the crude export space could continue.

uS ports warn of project funding tax hike cant. ALONG SIDE (K.I.C.T): 26/27 OOCL California D. L. Cnt. OOCL Pak EXPECTED ARRIVALS: CONTAINER (GEARLESS) Mol Endowment Mol Pak 15/12/17 Not SChed 800 Cnt. 800 Cnt. Talassa COSCO 16/12/17 Not Sched 600 Cnt. 600 Cnt. Songa Calabria COSCO 17/12/17 Not Sched 600 Cnt. 600 Cnt. COSCO Durban COSCO 17/12/17 Not Sched 600 Cnt. 600 Cnt. Mol Explorer Mol Pak 20/12/17 NOt Sched 700 Cnt. 1,000 Cnt. Norther Priority cosco 22/12/17 Not Sched 600 Cnt. 600 Cnt. GENERAL CARGO: Zi Jing Song COSCO 16/12/17 Not Sched 2,015 G.C Nil Pure Vision Aaras-Sh. 17/12/17 Not Sched 49,402 Steel Nil Chipolbrok Atlantic Sinotrans 18/12/17 Not Sched 739 G.C Nil Athos Sea. –CB Report

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he American Association of Port Authorities (AAPA) has said the current federal tax reform plan could hurt Oinancing 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 Oinancing 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 taxexempt 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 HaskoningDHV Good infrastructure is essential to efOicient 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. letter to Orrin Hatch, Chaiman of the Senate Committee on Finance, AAPA said: “Abruptly ending this incentive for private sector Oinancing would further constrain available funding for certain infrastructure projects. “Thus, the public would never fully enjoy the economic, quality of life and other beneOits from these projects. Moreover, the absence of PABs could increase

funding pressures on states, leading to the elimination or delay of all manner of planned projects, including those to be funded exclusively with public dollars.”

Meanwhile, Chinese 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 Marine 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.

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IRSA releases 73,400 cusecs water ISLAMABAD: Sixty percent work on Package-1 of western route of China Pakistan Economic Corridor (CPEC) in Dera Ismail Khan has been completed.

National Logistics Cell (NLC) Project Manager Colonel Kamal said the rest of work on the project would be completed in time with the efforts of expert engineers and use of modern machinery, a private news channel Monday reported.

Colonel Kamal said 54-kilometre Bahtar-Dera Ismail Khan Motorway was part of CPEC. He said work on Motorway was launched in September 2016 and it would cost Rs13.25 billion.

Wednesday December 20, 2017

Business

Reference against Dar: 4 witnesses record statement ISLAMABAD

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our witnesses recorded their statements before an accountability court in Islamabad during the hearing into references against former Oinance minister Ishaq Dar. The witnesses appeared on behalf of the prosecution before accountability Judge Mohammad Bashir who was hearing the reference regarding assets beyond known means of income, Oiled against Dar by the National Accountability Bureau (NAB) on the Supreme Court’s order.

Among the witnesses presented

pak to pay interest on chinese loans KARACHI

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before the court by the prosecution was Faisal Shehzad, an ofOicial at a private bank, who provided details pertaining to Dar’s bank accounts.

Director of the National Assem-

‘canada & pakistan have great potential to forge partnership’

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akistan will pay only 1 or 2 percent interest on concessional loans given by the Chinese government for execution of the CPEC’s related projects. In case of the investments coming from the Chinese enterprises, the rate of interest is 5 percent or less than that. And even that interest is to be paid to the Chinese Banks by the enterprises themselves, said a spokesperson of the Chinese Embassy.

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bly, Sher Dil Khan, also recorded his statement and provided details of Dar’s political career and the various portfolios he has held since the early 1990s. Khan told the court that

the former minister had Oirst become a member of the NA in 1993 on the NA-95 (Lahore) seat. He was receiving a salary of Rs14,000 a month as a member of the NA at the time, Khan added. He said that in 1997, Dar was appointed the minister of commerce. Two years later, in 1999, former president Pervez Musharaf came to power and then prime minister Nawaz Sharif was removed. In 2013, Dar was made the minister of economic affairs, revenue and statistics. He was also given the responsibilities of privatisation, Khan told the court. In August 2017, after Nawaz was disqualiOied by the Supreme Court, Dar was removed as Oinance minister an portfolio he occupied again for a short while in Prime Minister Shahid Khaqan Abbasi’s cabinet.

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akistan has a strong industrial base of products, which are exported globally as well as in growing volume into Canada” said Tariq Azim Khan, High Commissioner of Pakistan, while visiting Trade Show and cultural event, organized by Pakistan Canada Business Chamber (PCBC), in coordination with the Consulate General of Pakistan, Montreal, at Crowne Plaza Hotel, Montreal.

In order to give a boost to its exports by showcasing Pakistani niche products the trade Show was organized at a large scale in which 32 companies, representing goods and services, exhibited their products including textiles, carpets, surgical instruments, handicrafts, sporting goods, leather, jewellery, food and basmati rice etc. Three restaurants entertained the visitors with Pakistani cuisine, Pakistan High Commission said in a press release.

The High Commissioner, accompanied by Muhammad Aamer, Consul General of Pakistan in Montreal

and PCBC Directors visited all booths. A large number of businesses as well as the general public visited the booths and highly appreciated the Oine quality of Pakistani products. Later, a seminar was organized by PCBC to educate the Pakistani exhibitors about the import laws and regulations and certiOications required for entry of their products into the Canadian market.

The visitors highly appreciated the initiative taken by PCBC for promotion of Pakistani products that will deepen the trade ties between Pakistan and Canada.

IT ministry 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) to 10% that equals 25 billion per year. The IT Ministry would gain this profit through the project ‘Energy Watch; Preventing Pilferage, Saving Cost of Inclining Resource of Gas’ to benefit domestic users. Talking to APP, Project Manager Dr Gul Muhammad said, main hurdle in that project was the installation of sensors for underground networking of pipelines and provision of energy to those sensors, which now had been resolved. He added that through this step the cost of the project would be reduced. Dr Gul said according to the estimate Sui Northern Gas Pipelines Limited (SNGPL) would recover its implementation cost for these installations in around three years. “It will be profitable for SNGPL in 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 added. They had developed a sensor based network for real time monitoring and data acquisition of Gas Distribution Network, for possible malicious activities and theft detection, he added.

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Banking sector investments increase by 1.8pc in Q3cY17 ISLAMABAD

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he overall net investments of the banking sector surged by 1.8 percent during the third quarter (Q3) of calendar year 2017 against decline of 2.5 percent in the same period of last year.

Investment in government securities have remained the prime driver behind investments growth,

ofOicials data revealed.

Following the recent trend, banks have continued to invest in shortterm Market Treasury Bills (MTBs) and have divested from Pakistan Investment Bonds (PIBs) and Sukuks (PKR 11.7 billion) during Q3CY17, according to Quarterly Performance Review of the Banking Sector issued by the State Bank of Pakistan.

Consequently, the share of MTBs (in total net investments) has increased to 52.6 percent in Q3CY17

compared to 42.0 percent in Q3CY16 while the share of PIBs in total investments has declined to 35.3 percent, the data revealed.

The offer-to-target ratio (for PIBs auctions) has declined to 0.36 in Q3CY17 from 3.32 in Q3CY16, which reflects reduced banking sector interest in long-term government securities. There is a change in government’s maturity preferences for budgetary borrowings. The target amount for PIBs

auction of PKR 300 billion in Q3CY17 was significantly lower than the PIBs maturity of PKR 772.6 billion, representing abated interest of government in longterm borrowings.

According to the report, Higher investments in MTBs could also be seen as a market risk management strategy by banks, owing to expectations of a possible change in direction of interest rates in the future. Banks’ investment in

corporate securities (TFCs, Bonds, debentures, fully paid up shares etc.) has decreased by 2.6 percent during Q3CY17. Particularly, banks’ investment in corporate debt instruments has declined by 1.3 percent (PKR 3.2 billion) while investments in shares/listed equity has declined by 0.9 percent (PKR 2.4 billion), the report said adding this may be a manifestation of the ongoing volatility in the capital market.

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U.S. setting stage for solar trade war with China NEW YORK: An unreleased White House document offers the strongest hint yet that the Trump administration is laying the groundwork for punitive tariffs on Chinese-made solar power equipment — a step that would promote the president’s “America First” trade agenda while sharply increasing the costs of solar power in the U.S. The prospect of such tariffs, which President Donald Trump could announce in January, has deeply alarmed the U.S. solar installation industry. It warns that it could lose tens of thousands of jobs if the cost of solar spikes, slowing the booming growth that sun-powered energy enjoyed during the Obama administration. But the White House is preparing to argue that trade barriers are needed tofoster solar manufacturing inside the United States, something it calls important to both national security and the economy, according to a document draft obtained by POLITICO.

pakistan’s gSp plus arrangements to be maintained by uk: Elin Burns

Wednesday December 20, 2017

Chambers

IccI & unIDo organize Investors connect program to promote innovations

KARACHI

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ritish Deputy High Commissioner, Ms. Elin Burns, while highlighting British government’s commitment, said that when UK leaves European Union (EU), Pakistan’s GSP Plus arrangements will be maintained by UK, if not improved.

“We will unilaterally agree to put those GSP Plus arrangements in place which is going to be a very positive step in terms of strengthening UKPakistan trade ties and it shows UK’s strong commitment and desire to expand trade with Pakistan”, she added during her visit to Karachi Chamber on Tuesday while referring to UK’s Senior Trade Minister’s recent visit to Pak-

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istan who also announced UK’s commitment to replicate GSP Plus System arrangements with Pakistan. Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli, Vice Chairman BMG Zubair Motiwala, President KCCI Muffasar Atta Malik, Senior Vice President KCCI Abdul Basit Abdul Razzak, Vice President KCCI Rehan Hanif, Chairman Diplomatic Missions & Embassies Liaison Sub-Committee Sohail Amin, Former Presidents KCCI Majyd Aziz & Abdullah Zaki and KCCI Managing Committee members were present at the meeting. Ms. Elin Burns stated that British government was keen to further strengthen trade and investment cooperation with Pakistan. “We have increased our trade teams with presence in Islamabad, Karachi and Lahore, which is the sign of the importance that we give to strengthening trade relations with Pakistan”, she added.

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he Islamabad Chamber of Commerce and Industry (ICCI) in collaboration with United Nations Industrial Development Organization (UNIDO) organized an “Investors Connect Program” (ICP) to bring together innovators and investors to promote innovations and explore mutually beneOicial matchmakings. Maroof Afzal, Secretary, Ministry of Industries and Production was the chief guest of the ceremony. The innovators of UNIDO’s Global Cleantech Innovation Program (GCIP) participated in the Investors Connect Program and presented their innovations to the potential investors so that investors could support commercialization of innovative business ideas.

Speaking at the occasion, Maroof Afzal, Secretary, Ministry of Industries and Production said that government should make supportive policies for innovators to bring industrial revolution in Pakistan. He said Pakistan’s 60% youth was under 30 years of age that offered

great potential for innovations. He said conducive environment and good incentives were needed for the innovative ideas to Olourish. He appreciated the initiative of ICCI and UNIDO for taking lead to organize Investors Connect Program and urged the investors to support innovators for building innovative culture in Pakistan. He stressed for a mechanism and system to address barriers and support creative talent

and new technologies in Pakistan.

He hoped that ICP would lead to formation of some big companies in Pakistan and assured that his ministry would support such initiatives.

Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that Investors Connect Program was organized by ICCI for the Oirst time in Pakistan in collaboration with UNIDO to provide innovators a good platform to con-

IccI holds christmas cake cutting ceremony ISLAMABAD

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he Islamabad Chamber of Commerce and Industry organized a Christmas Cake Cutting ceremony to participate in Christmas celebrations with the Christian community. Rew. Emmanuell Lorraine Church of Pakistan, Ch. Rashid Farzand Chairman Phool Group of Business, Ch. Ashraf Farzand Chairman ICCI Minority Welfare Sub-Committee and others were present at the occasion.

Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that Christian community was playing important role in almost every walk of life, which was laudable. He said millions of Christians around the world in-

cluding Pakistan were preparing to celebrate the birth of Jesus Christ who was sent to this world as a symbol of peace, brotherhood and respect for the entire humanity. He said Jesus Christ not only healed the ailing humanity but preached the divine values of tolerance, love and compassion and Islam also kept these values in high esteem.

He said some forces working to create sectarianism in the country and we have to foil such efforts with inter-faith harmony and unity. He said that Islamabad Chamber of Commerce and Industry has formed a Minorities Welfare SubCommittee to work for the welfare of minorities and assured that ICCI would continue to play role for promoting the business interests of traders and industrialists of minorities including the Christian community. Muhammad Naveed

Senior Vice President and Nisar Mirza Vice President, Islamabad Chamber of Commerce and Industry said that all minorities including Christian community have to work hard for the development of Pakistan. They wished Christian community Merry Christmas. Pastor Emmanuell Lorraine Church of Pakistan read the message of Jesus Christ. He said that all communities in Pakistan have to work together for building a progressive and prosperous Pakistan. Pastor Liaquat Kaiser, Ch. Ashraf Farzand Chairman ICCI Minorities Welfare Sub-Committee and others also spoke at the occasion. They thanked ICCI for organizing Christmas cake cutting ceremony for Christian community and assured of their full cooperation and support to the initiatives of ICCI aimed at promoting the business interests of minorities.

nect with investors for commercialization of innovative ideas. He said Pakistan has great talent of innovators and they needed right direction & support to excel in innovations.

He stressed that public-private partnership models should be developed to support innovators. He assured that ICCI would continue to partner with UNIDO in initiatives aimed at promoting innovators, startups and SMEs.

fccI playing pivotal role in overall working: mian Idrees tanding Committees of the Faisalabad Chamber of Commerce & Industry (FCCI) are playing pivotal role in overall working and policy making of the chamber. This was said by former President Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Mian Muhammad Idrees. He said that the chairmen of all standing committees must be fully aware of the objectives and TOR of their respective committees to make these productive and result oriented. Addressing the first introductory meeting of standing committees of the FCCI . he said that the committees have to play a dynamic and proactive role regarding their specific sector and they must focus on each and every problem of their sector in addition to proposing viable solutions to their issues. –CB Report

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Court sends suspects on physical remand booked in gold smuggling case KARACHI: The Customs Court Judge Syed Faiz Rasool Rashdi sent suspects namely named Jameel Akhtar and Jameel Qureshi to customs department on physical remand, who were booked in case of attempting to smuggle huge quantity of gold worth millions of rupees.

During the hearing, investigation officer produced the above mentioned suspects before the court and submitted that the higher authority received credible information regarding the smuggling of huge quantity of gold worth millions of rupees through passenger arrived from Dubai.

Wednesday, December 20, 2017

CUSTOMS BULLETIN

gwadar customs seizes smuggled Iranian juices, carpets worth Rs6.50 million GAWADAR wAQAR AhmED AnSARI www.customsbulletin.com

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he Customs Collectorate has impounded different kinds of Iranian Juices and Iranian non duty paid carpet worth more than Rs6.50 million on Monday morning. Sources told Customs Today, that on the directives of the Deputy Collector Gwadar Junaid Mehmood , operation against smuggled and non-duty paid luxury vehicles is going on in full swing and several raids have been conducted during previous month of November and operation of smuggled items carry on , in current month of December.

Sources told that on Monday morning deputy collector Gwadar constituted a team of Customs AntiSmuggling Organization (ASO) under the supervision of Customs Preventive Inspector Shah Hussain Abroo and others. The team, during a search operation, intercepted a truck bearing registration no: KG.2197 which was going out of the city. During the raids, the customs team impounded 500 cartons of Iranian juices, and 120 pieces of non duty paid Iranian carpets worth Rs6.50 million. The customs team arrested two smugglers

who were involved in smuggling and registered an FIR against the accused persons and started investigations. It

is necessary to mention here that Customs Collectorate has impounded different type of computer acces-

sories worth more than Rs4.26 million, included 50 LED Olat screen monitors, 25 laptop Acer brand,500 (

4GB Laptop Ram) and huge quantity of data cables hard wire worth 4.26 during the Oirst week of December.

Afu BkIAp thwarts smuggling of 180 smart phones from Dubai PESHAWAR

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he Air Freight Unit of the Pakistan Customs posted at the Bacha Khan International Airport Peshawar has frustrated an attempt of smuggling of 180 foreign origin smart phones from Dubai into Pakistan. The Unit informed Customs Today on Tuesday that the smart phones are of foreign

origin Samsung and LG brands which were seized from one Muhammad Waqas Javaid who was traveling by Emirates Airline flight No: EK-636 from Dubai to Peshawar. The smart phones were cleverly packed in the luggage which was traced by the Air Freight Unit of the Customs House Peshawar. The Customs official has arrested the accused and registered an FIR against him.

A tip-off was given by Collector Customs Gul Rahman to Assistant Collector Airport Asma Javaid about the presence of

smuggler upon which she formed a team under the supervision of

Inspector Air Freight Unit of the Customs House Peshawar. The

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).

smart phones are worth Rs5million in the international market.

The Collector Customs said the Customs Department is working to eliminate the risk of smuggling through implementation of tax trade laws for which no reliability will be given to anyone who tries to sabotage the already working tax collection system.

The Collector Customs lauded the efforts made by the Air Freight Unit of the Bacha Khan International Airport. He especially appreciated the role of Assistant Collector Airport in making her tireless efforts.