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Karachi, Sat December 23, 2017

FAISALABAD

NAEEM SHEIKH

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he purpose of the highly esteemed department of customs is to facilitate the business community and save the economy of the country by curbing the menace of smuggling. The government establishes different institutions or departments to provide the investmentfriendly environment to the traders, importers

and exporters rather than to panic them. Faisalabad importers said that, for import and export sector, customs has a key position as its main objective is to facilitate the business community besides clearing consignments of traders on priority so that they could develop their businesses more and more which would ultimately bring employment opportunities for youth and increase the tax to GDP ratio. Some black sheep in customs intelligence not only ruin the credibility of the

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department for their vested interests but also cause the businessmen ruination. He added that importers are facing problems in clearance of their consignments at many dry ports and seaports due to which they have to divert their clearance to other ports. Sources made some shocking revelations about Faisalabad Customs Intelligence and Investigation as to three employees were transferred from Faisalabad with immediate effect and assigned new duties for achieving better results.

Saeed positive about generating additional revenue in 2nd Quarter

DG Valuation Surriya to revise VR No 764/2015 on January 24

FTO postpones hearing of appeal filed against RTO Sargodha

‘Pak-Oman relations to be taken new heights through economic’

CollectorGul Rehman orders investigations into illegal checking of consignments

Collector MCC Islamabad, is optimistic about receiving a surplus revenue | SEE pAgE 02 |

DG Valuation has decided to revise the Valuation Ruling No: 764/2015 on Jan 24 | SEE pAgE 03 |

FTO has postponed the hearing of a case filed by Khalid , a resident of Sargodha | SEE pAgE 04 |

Ayaz said that Pakistan greatly values its cordial relations with Oman | SEE pAgE 14 |

Gul Rehman has taken serious notice of the complaints made by several importers | SEE pAgE 16 |

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FBR orders Customs for required action against smuggling via Chakothi Saturday, December 23, 2017

ISLAMABAD: The Federal Board of Revenue asked the Model Customs Collectorate Islamabad to take necessary actions against the illegal smuggling of ginger, bananas, tomatoes, spices, fabrics and shawls via Chakothi (AJK) from India. The sources of the Model Customs Collectorate (MCC) Islamabad told Customs Today that Enforcement and Coordination of the Federal Board of Revenue (FBR) directed the MCC Islamabad to ensure eﬀective surveillance and checking at the exit points like Sihala, Jhelum and Wazirabad to thwart any attempt of smuggling of the abovementioned goods into Pakistan.

Islamabad

Saeed positive about generating additional revenue in 2nd Quarter

ISLAMABAD

cuStoMS BuLLEtIN rEport

tArIQ DErYA

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ederal Board of Revenue (FBR) has said that income of all pensioners is exempt from tax and same in case of pensioners of armed forces. The FBR clarified that tax is already being deducted in respect of all personnel of Armed Forces deriving taxable salaries and only electronic filing of returns is being facilitated. “Moreover, pension of ex-servicemen of Armed Forces, like every other pensioner, is exempt from tax,”the FBR said. The FBR further said that taxpayers outreach program had been launched to approach and facilitate taxpayers, being individual employees, through their employers for filing of their returns. This program is a step towards broadening the tax base in the country. Pakistan Army took the lead in this respect and subsequently FBR has started a series of workshops to educate, motivate and facilitate the taxpayers to file their Income Tax Returns. Following this lead, various heads of large organizations and leading banks approached FBR in this respect. In response diﬀerent teams were constituted led by senior Members of FBR who conducted various meetings with heads of these organizations to create understanding and awareness about tax obligations and oﬀered facilitation to the taxpayers to boost filing of Income Tax Returns.

aeed Khan Jadoon, Collector Model Customs Collectorate Islamabad, is optimistic about receiving a surplus revenue during 2nd Quarter Fiscal Year 2017-18. He appreciated the judgment of the Federal Tax Ombudsman (FTO) on the release of halfcut and body-cut spare-parts whose Import General Manifesto (IGM) was cleared before the implementation of new economic policy of Financial Year 2017-18. The Collector Model Customs Collectorate Islamabad stated this while giving an exclusive interview to Customs Today. He said his sympathies are with the importers whose goods have been stuck at the Islamabad Dry Port for the last seven months. He added that the FTO has indorsed the decision of the Lahore High Court which is justiRied. He said the FTO’s decision permitted those importers to lift their consignments whose IGMs were processed before the 1st July 2017. He remarked that some of importers’ consignments are still jammed at the Islamabad Dry Port however the matter regarding the half cut and body cut spare parts will be resolved soon. Answering a query regarding the performance of all the customs stations, working under the jurisdiction of the Model Customs

fBr exempts pensioners from income tax

Collectorate (MCC) Islamabad during the Rirst two weeks of December Financial Year (FY) 2017-18 under the head of Customs Duty (CD), the collector notiRied that, during Rirst two weeks of December FY17-18, all the custom stations, comprising Islamabad Dry Port (IDP), Air Freight Unit (AFU), Customs Bond Section, Unaccompanied Baggage (UAB), Accompanied Baggage (AB) and International Mail OfRice (IMO), showed satisfactory performance under the head of Customs Duty (CD). He ex-

plained that the IDP received Rs115.27million of Customs Duty against an assigned revenue collection target of Rs117.60million during the Rirst two weeks of current month of December FY17-18. The collector told CT that the IDP earned Rs99.45million as Customs Duty during the same period of corresponding FY16-17 under the same head. He further said the Customs AFU received Rs188.72million of Customs Duty during the Rirst two weeks of December FY17-18 while the AFU

was allocated a revenue target of Rs96.92million as Customs Duty. He further added that the AFU generated Rs75.16million under the same head during the same period of previous FY16-17. Replying to another query, Saeed Khan Jadoon further told correspondent that, during Rirst two weeks of December FY17-18, the C.Bond received Rs0.25million of Customs Duty whereas the UAB did Rs0.21million as Customs Duty against an earmarked proportional revenue target of Rs0.19million.

AtIr reserves decision of case filed by tNB Liberty power Ltd

ISLAMABAD

NAEEM uLLAH tArIQ www.customsbulletin.com

he Appellate Tribunal Inland Revenue (ATIR) has disposed of M/s TNB Liberty Power Limited tax matter and reserved a decision on another case during the recent week of December. Accountant Member Dr Ghulam Mujtaba Bhatti heard the cases Riled against ofRices of the Federal Board of Revenue. The bench had earlier

reserved a decision on the tax matter Riled by M/s TNB Liberty Power Limited. Account Member Bhatti had reserved the decision on tax matter Riled by M/s Klaguardia Logistics. According to details, M/s TNB Liberty Power Limited had challenged a recovery notice issued to it under the head of outstanding income tax by the LTU, Islamabad. M/s TNB Liberty Power Limited had submitted the department had issued the demand for the tax year 2015 in head of income tax under provi-

sions of Income Tax Ordinance, 2001. ATIR also reserved decision on petition challenging a show cause notice issued by Riled ofRice of Federal Board of Revenue regarding outstanding taxes. According to details, M/s Klaguardia Logistics had challenged recovery of issued to it in head of outstanding income tax by the LTU, Islamabad. M/s Klaguardia Logistics had submitted the department had issued the demand for the tax year 2016 in head of income tax under provisions of Income Tax Ordinance, 2001.

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Pak rupee continues recover in interbank to reach Rs109.80 KARACHI: The Pakistan rupee strengthened against dollar in interbank and slightly depreciated in open market. As per the local money market, the dollar lost 30 paisas in interbank for buying at 109.80 and for selling at 110, while it gained five paisas in open market for buying at Rs110.25 and for selling at s110.55. On Wednesday, Greenback edged higher in value versus domestic unit in interbank and also stood firm in open market transaction. Following significant demand during intra-day trading, dollar closed at Rs110.10 for buying and Rs110.40 for selling versus rupee in interbank.

Master pipe Industries moves SHc against fixation of extra duty

Saturday December 23, 2017

Karachi

Dg Valuation Surriya to revise Vr No 764/2015 on January 24

KARACHI

M B rANA

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he Sindh High Court (SHC) has issued notices to the customs authorities and deputy attorney general on a constitutional petition filed by M/s Master Pipe Industries against fixation of extra duty on import item of hot rolled coils, cold rolled and galvanized coil of secondary quality imported from European countries and Taiwan. While hearing the petition, a two-member bench, comprising Justice Munib Akhtar and Justice Omer Sial, also directed them to file their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner submitted that the petitioner is importer and fulfills all the responsibilities according to the law.

court extends bail of owner in toyota smuggling case KARACHI

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ustoms Taxation and AntiSmuggling Court Judge Syed Faiz Rasool Rashdi extended bail of suspect namely Usman Ghani. The suspect was booked in a case of smuggled/ non-duty paid Toyota Surf jeep bearing registration number E-1144. Earlier, counsel for the accused moved a bail application, saying that his client was innocent and was falsely implicated in this case, who is ready to face trail, therefore, the court might grant him bail till final order of the court in this case. After the arguments, the court granted bail against the surety of Rs 200,000 and issued notices to the special prosecutor for the Customs Department and investigation officer and court directed them to file comments on the next date of hearing.

KARACHI

wAQAr AHMED ANSArI www.customsbulletin.com

irectorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 764/2015 on January 24, 2018, it is learnt. According to the details, Director General Surriya Butt has said that the department is reviewing suggestions from importers to set new prices of cotton fabrics. She said that some valuations, which were issued in 2015, were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international markets. Sources said that a petition was submitted by the importers to the Customs Valuation in which change in prices of cotton fabrics was requested. Sources said the Valuation Ruling No: 764/2015 was issued October 7, 2015. A meeting was held with the stakeholder’s on 13 December 2017. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained. Meanwhile, Directorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation

Ruling No: 881/2016 on January 22, 2018, it is learnt. According to the details, Director General Surriya Butt has said that the department was reviewing suggestions from importers to set new prices of woven/knitted furnishing (sofa & curtain fabric and coated fabric (flocking sued) . She said that some valuations, which were issued in 2016, were being reviewed from the beginning. Moreover, the valuations will

A meeting was held with the stakeholder’s. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question

Appraisement East generates rs 8,810.62m till Dec 15

KARACHI

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he Customs Collectorate of Appraisement East has collected Rs 8,810.62 million under the heads of customs duty, sales tax, income tax and federal exercise duty during the Rirst two weeks of December. Sources told Customs Today that the Customs Appraisement East received Rs 2,814.29 million as customs duty, Rs 2,925.56 million

under the head of sales tax, Rs 3,034.23 million as income tax and Rs 36.54 million under the head of federal excise duty during the pe-

riod. It is necessary to mention here that the Customs Collectorate of Appraisement East showed outstanding performance by collecting outstanding amount in the month of November as the MCC East had collected Rs 17,536.34 million under the head of customs duty, sales tax, income tax and federal exercise duty. Collector Appraisement East Ashad Jawad has said MCC East is optimistic about achieving the assigned revenue collection target till the end of the month.

be set in view of rising prices in the international markets. Sources told that a petition was submitted by the importers to Customs Valuation in which change in prices of wooven/knitted furnishing (sofa & curtain fabric and coated fabric (flocking sued) was requested. Sources said the Valuation Ruling No: 881/2016 was issued June 29, 2016. A meeting was held with the stakeholders on 12.12.2017.

pSX continues upward journey with 508pts gain he Pakistan Stock Exchange (PSX) continued upward rally after gaining huge 507.71 points to take the tally to 38715.77 level. The stocks recorded the highest trading level of 38793.99 points and lowest level of 38014.84 points, with the volume of 179.63 million shares and value of Rs6.92 billion.

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FIA arrests man involved in hundi business Saturday December 23, 2017

Lahore

LAHORE: Federal Investigation Agency (FIA) Gujrat team conducted a raid at Waleed currency exchange Kharianwala district Gujrat on where a person found involved in illegal business of currency exchange/hundi hawala. According to FIA spokesman, the team recovered Rs 192,000, cheque books, receipts and other documents regarding hundi hawala. The team arrested the accused Muhammad Rizwan of Kharianwala. A case has been registered against the accused.

customs seizes liquor, mobile-phones & accessories at AIIA LAHORE

M IMrAN MEHAr

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he customs officials have confiscated about 13 alcohol bottles and a number of mobile phones from passengers travelling by different flights during some raids on the Allama Iqbal International Airport. Sources told Customs Today that officers conducted operations in different flights coming from different countries. Flights were coming from Dubai to Lahore, Turkey to Lahore, Jeddah to Lahore and Muscat to Lahore. The customs took actions in Pakistan International Airlines (PIA) flights, Turkish Airways flight, Gulf Air and Saudi Air flight. During actions in these flights,

fBr issues notice to folk singer Arif Lohar he Federal Board of Revenue (FBR) Regional Tax Office issued tax notice to renowned folk singer Arif Lohar. Sources told Customs Today that the FBR sought income details from the folk singer of the last three years. Sources said that the FBR found some mistakes in tax returns submitted by Arif Lohar. After detecting the tax evasion, the Regional Tax Office issued him notice for the payment of outstanding dues within 14 days failing which stern action will be taken against him. It is necessary to mention here that FBR has already tightened its noose around tax evaders. The FBR is using all available resources to recover outstanding tax amount from tax defaulters to meet the assigned revenue collection target set for fiscal year 2017-18. –CB Report

the customs staff recovered 13 bottles of alcohol. Mobile phones were also seized from different passengers. The customs allowed all the passengers to go after the confiscation of alcohol bottles from their possession. The customs has also impounded one LED of 32 and one LED of 43 inches from a passenger. The security officers have launched an investigation into the matter. The customs has started strict checking of the luggage of the passengers, especially of European flights. A number of attempts of smuggling of foreign currencies and mobile phones’ accessories and other relevant items have also been foiled by the customs. Dozens of mobile phones were also seized by the airport customs officials during the last two months.

fto postpones hearing of appeal filed against rto Sargodha

LAHORE

SAJID NAwAZ

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

Khalid Mehmood, a resident of Sargodha, against the Regional Tax OfRice (RTO) Sargodha until the next hearing. FTO Advisor Tariq Yousaf heard the case in which the counsel for the appellant argued that the RTO Sargodha has not released the refund to the appellant of the last two years. He said that the RTO Sar-

godha collected excessive tax from the appellant during the last two years. The company approached the ofRicer concerned many times for issuance of the refunds but the department did not pay the refunds after the passage of a reasonable time. Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO), seeking interference in this case. The counsel appealed the FTO advisor to direct the commissioner of RTO Sargodha to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. On the other hand, counsel for the RTO argued that the appellant has not submitted all record in the ofRice on basis of which it is claiming for refunds. If appellant provides accurate record, the RTO will issue the refunds if any after proper assessment, he added.

NAB team returns to pakistan after textile sector wants tax-free import of yarn completing probe against Sharif family s the government is all set to duty relaxation on yarn import in

he National Accountability Bureau (NAB) team that was in London for the Avenfield apartments case probe against the ousted prime minister Nawaz Sharif has returned after completing the investigation, according to a local media outlet. NAB’s Deputy Director Sultan Nazeer, case officer in the Avenfield Reference, and Imran Dogar, investigation officer, said at the airport that nothing new has been discovered in the investigation that could help further

the Avenfield properties investigation. The two-member NAB team was in London for a six-day period for the investigation. According to the team, they reportedly had meetings with the National Crime Agency (NCA), the Crown Prosecution Service (CPS) and Home Office’s UK Central Authority and said that they were “hopeful” about the outcome of these meetings and would be handing over their findings to the authorities. –CB Report

withdraw sales tax and customs duty on import of cotton on the demand of spinning industry by putting aside the interest of the growers and ginners, the Pakistan Readymade Garments Manufacturers & Exporters Association has appealed to the authorities to also relax duties on yarn import to encourage the value addition, reduce cost of doing business and bridge the gap between production and consumption. PRGMEA Chief Coordinator Ijaz Khokhar asked the Textile Division to submit a summary to the ECC for

line with the beneRits being provided to the spinners. “With a view to bridge the soaring gap of trade deRicit, the government will have to provide level-playing Rield to the whole textile chain instead of supporting only yarn manufacturers, which have just around 350 units, against the value-added sector of 10,000 units across the country. With regard to the employment generation, one spinning unit generates just 5% employment while the garment unit creates 95% employment,” he added. –CB Report

regulatory Duty issue will be resolved soon: pM

LAHORE

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rime Minister Shahid Khaqan Abbasi has said that Regulatory Duty issue will be resolved soon while revival of Export Development Fund (EDB) is also under consideration. The prime minister was talking to

a delegation of the United Businessmen Group (UBG), jointly led by UBG patron-in-chief SM Muneer and its Chairman Iftikhar Ali Malik who is also vice president of SAARC Chamber of Commerce and Industry. Prime Minister Abbasi said that the government is well aware of the situation caused by the new Regulatory Duty regime and a decision to facilitate the businessmen had already been taken

and it would be announced through proper channel. He said that business community is the engine of growth and its facilitation is the top priority of the government. SM Muneer and Iftikhar Ali Malik said that businessmen want to contribute heavily in economic uplift of the country provided their genuine issues are resolved. While welcoming the prime minister’s signal to resolve the Regulator

Duty issue, they said that it would be a great favor to the entire economy as the duty was damaging both import and export sectors. They said that Regulatory Duty should not be withdrawn partially, it must be withdrawn totally. They said that since various imported raw materials are being used in the local industries for manufacturing and exporting of goods therefore Regulatory Duty.

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ustoms Intelligence actions against transporters under the head of smuggling are baseless and they have no powers to detain our vehicles. They only take these kind of action against transport vehicles to please their high ups and demand pocket money for giving us safe route. Transporters are one of main victims of Custom Intelligence and Intelligence in all over country especially South Punjab region during their illegal actions on different check posts, Toll Plazas and Motorways. Customs Intelligence and Investigation detained transporter vehicles and imported goods for the sake of re-examination and evaluation. This hectic exercise of Customs Intelligence and Investigation affect badly to transporters who are delivering import and export consignment of business community. It was stated by Chairman Goods Transport Association Multan Region Haji Muhammad Akram while talking to Customs Today about the illegal detention of vehicles made by Customs Intelligence and Investigation in the jurisdiction. Transporters are the backbone of our economy and we provide services to large and small businessmen in the county by transporting their import and export goods swiftly to their desired destination. He told that Customs Intelligence and Investigation operate illegally and they stopped our transporter without any reason and they detain those loaded vehicles which were cleared from Ports on the charge of loading smuggled goods to blackmail transporters. He said that Illegal detention tactics of Customs Intelligence and Investigation unsettle owners of shipment because it causes unnecessary delay in their delivery of their goods. When Customs Intelligence and Investigation failed to recover any discrepancies in the cleared shipments then they raise objections on the vehicle that it may be suspected and smuggled one. Sometimes Customs Intelligence and Investigation staff told us that we need to verify the chasis and engine number and it may be doubtful and they detain said vehicle along with their shipments to blackmail innocent transporters.

Saturday, December 23, 2017

We received common complaints from our slow justice system of this country. transporters that Customs Intelligence and In- We demanded from Federal Board of Revenue vestigation teams took lot of time for issuing no to take Rirm action against detecting ofRicer for objection certiRicate for the genuine vehicles to framing illegal case and criminal case should be upset our drivers and owners in order to com- lodged against these ofRicers for betterment of pel them for sweetener. They wasted our valu- Customs Intelligence and Investigation. Cusable time in veriRication and clearance of ship- toms Intelligence has not done any suspension ments due to their illegal and dishonest attempt and termination of their any employee after of blackmailing us which also creates huge un- formation of illegal seizure case. Customs Inrest in the transporters association. This illegal telligence and Investigation is also notorious action also incurred huge loss to transporters in their reputation for blackmailing transand due to illegal detention they deprived from porters in different parts of country. daily income. Majority of drivers and transport Transporters operating in the country are doing owners are from low income backgrounds and legal business and they are performing their job their family become foodless due to illegal act of honestly .we utilized customs paid vehicles for Customs Intelligence and we have demanded transporting of goods in the country and we are from Federal Board of Revenue that they should vulnerable society but Customs Intelligence and free transporter vehicles immediately that they Investigation treated us inhumanly on the check earn income for their family. posts and openly demanded us money for reTransporters are common man and they earn leasing our vehicles. Few of our transporters bread and butter from the transportation of gave distortion money and bribe to corrupt Cusshipments on remote location of consignee. If toms Intelligence staff in order to avoid their ilthey got late in delivery of shipments due to legal action against them. Paying kickbacks to protest and Customs Intelligence unlawful ac- Customs Intelligence staff and Investigation staff tions on the check posts without ant reasons it also saves our valuable time during delivery of cost badly to transporters and their family and any imported goods to its desired location. on the side importers are not Those transporters who refuse to give them bribe ready to compensate with then they face detention, seizure and hectic exerus. Sometimes Customs cise of their issuing no objection certiRicate to legal Intelligence and Invehicles. Customs Intelligence has not suspended vestigation raised and terminates any employee after formation of ilgroundless objeclegal seizure case. We detions that engine manded that government of the vehicle or should take stern action body is not genagainst those who made unuine so we made lawful seizure against seizure report transporters and deagainst vehicle. manded kickbacks Majority of their for safe passage. seizure reports formed against transporters proved s of tactic n o wrong in the Cusi t n and l dete toms Adjudication Illega gence i l l e t n sI and other courts ners tle ow t custom e s n but it took months s nu cause igatio and weeks to prove use it a Invest c e b innocent in any their ment of ship elay in d seizure case due to y r a ss

e ds unnec of goo y r e v i del

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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

Dragging rupee to its knees

here is no doubt in the notion that international financial institutions are the neo-colonialists of the modern age with powers to make and break the economies of developing countries. The financial institutions, which were set up apparently to assist the developing economies, are following the policies not different than that of the East India Company or the organizations of the kind which occupied most of the countries in Asia and Africa. The portion of India, which is now Pakistan, also remained under British rule for a century and now its government is losing writ and ability as an independent country to the foreign financial institutions. The recent chaos in political scene has led to the International Monetary Fund to dictate its conditions to the fragile government in Islamabad in the same manner as was the modus operandi of the colonial powers in the past. The fund’s mission, during its visit to Islamabad, convinced the prime minister and the State Bank officials to lower the rupee value without keeping in view its aftermath and effects on the economy and the working classes. The IMF has successfully completed its mission and the central bank looked on the free fall of the country’s currency as a silent spectator for a couple of days until its worth came to the lowest ebb. What can be said other than irresponsibility of the finance managers of the country, who are occupying senior positions on the taxpayers’ money, but have failed to find a way out. The IMF officials dictated their terms and the managers accepted every advice like obedient servants. The IMF mission has now welcomed the State Bank’s move to allow the currency exchange rate to adjust the ‘market conditions’ with a hidden order to show more flexibility in the coming days. Reports suggest some of the beneficiaries of this move have earned billions of rupees overnight without investing anything. When there is weak government in the centre, the officials can cross any limit without any fear of accountability. The National Assembly and Senates are also working normally on the taxpayers’ money but most of the parliamentarians are least interested in the economic affairs and. The devaluation of the currency is disastrous for the economy, but it seems the move has nothing to do with anyone from the government or the opposition benches.

Need to achieve sustainable growth rate A

LAHORE

Dr AftAB AfZAL

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World Bank official has predicted that Pakistan can join the group of high-income economies if it achieves sustainable growth rate of eight percent in its gross domestic product. However, in case it maintains a usual growth rate of up to 5 percent, half of its population will not be able to get social benefits in next three decades. Pakistan and the World Bank relations were established in early 50s and the country has been steadily availing loans programmes of the bank since then. However, the speed of getting loans has increased in recent

years due to failures of the successive government to put the economy on the right track. Whether it is the civilian or military government in the office, the piles of loans are adding to the country’s burden with every passing day and the situation is fast reaching a breaking point. The population of the country is growing at 2.5 percent yearly and the minimum growth rate of eight percent is the panacea of the emerging woes. At least 40 percent of the country’s population consists of the youth and they need better education and jobs opportunities. However, in a country where economy is the least priority and politics dominates everywhere, it is not diffi-

cult to predict the emerging economic situation in the near future. The bank official has advised the government to take measures to remove gender gap by creating equal jobs and business opportunities for women. This can be only possible if the government chose to invest in the human capital. According to him, the government needs to increase budget for education and health sectors to achieve targets for fourth industrial revolution. However, all the burden of hopes is placed on the federal government and the provincial governments are running the business as usual without considering their responsibilities in the nation building activities. The

youth of the country are brilliant and intelligent but need opportunities to prove their mettle. A common student with higher education in any field has the limited options to participate in the nation building programmes. The government has to encourage the business community to invest in the development projects instead of pressuring them for one reason or the other. The current policy is encouraging capital flight from the country. There is a need to launch business and industrial policies to attract local and foreign investment. Otherwise, tightening the noose around business community will throw the economy into unending crisis.

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FIA makes more recovery form oil marketing companies LAHORE: An oil marketing company has deposited an amount of Rs51 million to the national exchequer in an inquiry regarding petroleum levy. According to an FIA official, an oil marketing company has deposited the amount as FIA is probing petroleum levy case against the oil marketing companies. He said the same company has so far deposited an amount of Rs4.18 billion to the national exchequer whereas further recoveries are also expected.

IHc settles customs matter filed by M/s Hasas Engineering company

Saturday December 23, 2017

National

Implementation of revisited rD: fBr, commerce Ministry to brief Senate body

ISLAMABAD

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he Islamabad High Court (IHC) has disposed of a customs matter filed by M/s Hasas Engineering and Construction Company (Private) Limited and reserved decision of M/s Al Catel Lusent Pakistan Limited’s case during second week of December. Justice Mohsin Akhtar Kayani of the IHC heard the case and disposed it of with directives to the department to hear the appellant’s application pending before the adjudication. The appellant had challenged the act of recovery by the Commissioner Inland Revenue of the Large Taxpayer’s Unit, Islamabad. The IHC bench comprising Justice Shaukat Aziz and Justice Mohsin Akhtar heard the final arguments and reserved the decision on M/s Al Catel Lusent Pakistan Limited case. M/s Al Catel Lusent Pakistan Limited

ISLAMABAD

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he Senate Committee on Finance, Revenue, Economic Affairs and Narcotic Control would be briefed by the Federal Board of Revenue (FBR) and Ministry of Commerce on action taken for withdrawing regulatory duty on some products, which the committee felt were imposed inappropriately. The committee would be informed by FBR about the revisiting of the notiRication of regulatory duty dated October 10, 2017, as recommended by the committee in its meeting held on November 16, 2017, after the consultation with all stakeholders according to Senate Secretariat notiRication. The senate body, after hearing the issue had rejected RD on various importing items and had directed the FBR to revisit it. These duties were imposed on the recommendations of the Commerce Ministry to help reduce import bill. The committee in its meeting on November 9 had directed FBR to withdraw its letter that has resulted

in imposition of 10 percent regulatory duty on import of gas generators of 1250 KV or more capacity. Both the FBR and Ministry of Commerce were directed to have meeting with the importers of auto parts and come with solution on RD on autoparts. The meeting scheduled on Tuesday would review the revisiting status of these regulatory duties. Meanwhile, the committee is sched-

uled to further consider a Private Member’s Bill further to amend the Protection of Economic Reforms Act 1992 (The Protection of Economic Reforms (Amendment) Bill 2016), introduced on October 2016, the notiRication added. The Accountant General of Pakistan Revenues (AGPR) would present its progress report on conversion of pensioners on Direct Credit System (DCS) as recommended by the

committee in its meeting held on October 27. The Ministry of Finance would also brief the committee on the debt management risk indicators report for the year 2016-17 whereas it would also be briefed on recent approval by the Federal Cabinet on the issuance of Sukuk bonds along with details of Sukuk or Euro bonds issued, assets pledged and its interest rates for the last eight years.

25% tax to avoid automatic selection of audit ISLAMABAD

had filed the case challenging an announcement made by the Appellate Tribunal Inland Revenue (ATIR)through which it had sustained decision announced by the department’s adjudication pertaining to the show cause notice to M/s Al Catel Lusent Pakistan Limited for outstanding tax recovery. Through both the references, M/s Al Catel Lusent Pakistan Limited had named chief commissioner Inland Revenue, LTU, assistant commissioner Inland Revenue Withholding, LTU, Commissioner Inland Revenue (Appeals), LTU, and Federation of Pakistan through the chairman of Federal Board of Revenue (FBR) as respondent in the case.

tArIQ DErYA

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he non-Rilers can avoid automatic selection of audit by paying 25 per cent higher tax than the last year, within 90 days of expiry of last date. The facility could be availed by the taxpayers, who could not Rile income tax returns by December 15, 2017. The date for Riling of returns tax year 2017 is expired on December 15, 2017 for taxpayers’ categories, including salary person, business individuals and companies falling under special tax year. As per Section 214D of Income Tax Ordinance, 2001 the non-filers will be selected for audit automatically. However, the law explained that audit proceedings shall only be initiated after the ex-

piry of ninety days. The income tax laws explained that the audit proceedings shall not apply if the person files the return within ninety days from the date, if a person pays: (a) twenty-five percent higher tax, than the tax paid during immediately preceding tax year, has been paid by a person on

the basis of taxable income and had declared taxable income in the return for immediately preceding tax year; or (b) tax at the rate of two percent of the turnover or the tax payable under Part I of the First Schedule, whichever is higher, has been paid by a person alongwith the return and in the

immediately preceding tax year has either not filed a return or had declared income below taxable limit: Provided that where return has been filed for the immediately preceding tax year, turnover declared for the tax year is not less than the turnover declared for the immediately preceding tax year.

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ATIR puts oﬀ hearing of show cause notice on outstanding taxes Saturday December 23, 2017

National Ac-Inland revenue Qurratulain’s performance allowance restored

ISLAMABAD: The Appellate Tribunal Inland Revenue (ATIR) dated in office the hearing of a petition challenging a show cause notice issued by the office of the Federal Board of Revenue regarding the outstanding taxes. Accountant Member Dr Ghulam Mujtaba Bhatti reserved the decision on the tax matter filed by M/s Klaguardia Logistics. M/s Klaguardia Logistics challenged the recovery and served a notice on it under the head of outstanding income tax by the LTU Islamabad.

Six uDcs of customs Appellate tribunal promoted as readers

ISLAMABAD

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ISLAMABAD

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he performance allowance in respect of Qurratulain, an Inland Revenue Service officer of BS-18, has been restored. The performance allowance of officer, presently posted as Additional Commissioner-IR (OPS), Corporate Regional Tax Office, Lahore, was restored with effect from February 7, 2017. Meanwhile, Two officers of Inland Revenue Service, (BS-17), selected through the process of internal job posting (IJP), have been granted performance allowance. Muhammad Yousaf and Aqsa Gharshin, presently posted at Regional Tax Office, Quetta, were granted performance allowance with effect from November 15, 2017. Grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. 6(96)S(BIC)/2013-14 dated 06.03.2015 and will be discontinued in case prescribed terms and conditions are not fulfilled within one month from the date of issuance of this notification.

2.4 million taxpayers selected for audit s many as 2.4 million taxpayers have been selected for audit, who have obtained National Tax Number (NTN) but failed to file income tax return for tax year 2017. The Federal Board of Revenue (FBR) has received provisionally 1.1 million income tax return for tax year 2017 by November 15, 2017, which was the last date for filing the return for salary persons and business individuals. The FBR sources said that this number will be increased by around 0.2 million of those taxpayers, who had filed income tax returns manually. This means the number of filed returns may reach around 1.3 million. If income tax returns filed by corporate entities due on December 31, 2017. –CB Report

he Ministry of Law and Justice has notiRied promotion of as many as six UDCs at Customs Appellate Tribunal including two at the tribunal’s Islamabad headquarters. In all six UDCs have been promoted to the post of reader (BPS 14) from BPS 11, out of whom, Naveed Hanif and Kashif Ghafoor are working at Islamabad headquarters of the tribunal. The division has circulated the notiRication to the sections concerned including the tribunal’s regional ofRices, and AGPR. Earlier the ministry had notiRied the appointment of Umar Arshad Hakem as Judicial Member Customs Appellate Tribunal.

According to details, the appointment was made by the federal government in exercise of powers conferred by Sub Section 2 of Section 194 of Customs Act, 1969. It

was further stated that the appointment was made for the period of two years on deputation basis at BPS-21 for Lahore station. Earlier, the ministry had noti-

fied appointment of Shakil Ahmed as Judge Customs, Taxation and Anti-Smuggling. According to details, the appointment was made by the federal government in exercise of powers conferred by section 185(2), Customs Act, 1969. It was further stated that theappointment was made for the period of three years on deputation basis. The ministry had made this recent appointment on the post of district judge in Lahore. Ahmed would continue working at the post until further order from the date of charge assumption, the notification further stated. The Ministry of Law and Justice had also , during previous month, notified appointment of Agha Shahid Majeed as Member Technical (BS-21) at Customs Appellate Tribunal, Peshawar.

customs Export recovers evaded taxes and duties of rs 7.18 million T

ISLAMABAD

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he Customs Export has recovered evaded amount of taxes and duties of Rs 7.18 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s MK Enterprises availed undue benefits and concessions by importing different consignments by misusing the SRO 567 through Examiner Touheed Sultan. Sources told the company was allegedly involved in tax evasion of Rs 2.90 million. After detecting the tax evasion, the Customs Export issued them a Rinal notice on December 4, 2017 to deposit the evaded amount within 14 days. After receiving the notice, the management

of M/s MK Enterprises deposited the evaded amount in the ofRicial account of the Customs Export on December 19. On the other hand, the management of the M/s Mehak Textile Karachi also cleared Rs 4.28

million of taxes and duties. Sources told that M/s Mehak Textile Karachi also availed undue beneRits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export

authorities issued them with a Rinal notice on 1st December, 2017. After receiving the notice, the management of the M/ Mehak Textile Karachi deposited the evaded amount of taxes.

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Foreign Currency Account Scheme KARACHI: The 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 20-12-17 For 3 months and over but less than 6 months 1.3755% PA 2.1255% PA For 6 months and over but less than 12 Months 1.5317% PA 2.2017% PA For 12 months 1.8083% PA 2.6833% PA For 2 Years 1.8083% PA 3.1833% PA For 3 Years 1.8083% PA 3.4333% PA For 4 years 1.8083% PA 3.6833% PA For 5 years 1.8083% PA 3.8083% PA POUND STERLING VALUE 20-12-17 For 3 months.

Indonesians business delegation lauds punjab govt LAHORE

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high-profile Indonesian Business Delegation on Wednesday acknowledged Punjab government initiatives for ensuring investment-friendly environment. Speaking here at Pakistan-Indonesia Business Forum arranged by Punjab Board of Investment and Trade (PBIT), the Indonesian investors had shown keen interest to invest in Punjab. The delegation led by Mr. Alwi Shihab, Special Envoy of Indonesian President for Middle East and OIC, is on a three-day visit to Punjab with an objective to establish and boost trade relations between the two countries. Top ten

representatives from major sectors including construction, textiles, auto parts and food industry were part of this delegation. At the forum, a presentation regarding Special Economic Zones, overall investment opportunities in Punjab, businesses, agriculture and tourism, was also given to the delegates. Indonesian delegation showed their immense interest in expanding their business with Pakistan. On this occasion, PBIT Vice Khawaja Ahmed Hassan said that Indonesian investors’ visit would help explore new avenues for trade, investment and joint ventures in accomplishing the mutual target of sustainable economic development. Punjab Secretary Industries Mujtaba Paracha, PBIT CEO Jahanzeb Burana and other prominent personalities also attended the forum.

National

court re-issues non-bailable warrants of suspects in Q-Mobile smuggling case

Apparel makers demand import duty relaxation MULTAN

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he Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) has asked the authorities concerned to relax duties on the import of yarn to encourage value addition, reduce the cost of doing business and bridge the gap between production and consumption, said a press release. Its demand comes in the wake of the government’s decision to withdraw sales tax and customs duty on the import of cotton to help spinning mills. The association has requested the Textile Division to submit a summary to the Economic Coordination Committee of the cabinet for duty relaxation on yarn imports. “The government will have to provide a level playing field to the whole textile chain instead of supporting only yarn manufacturers, which have around 350 units against the value-added sector comprising 10,000 units across the country,” said Prgmea Chief Coordinator Ijaz Khokhar in the press release. Mr Khokhar said the government is going to facilitate cotton imports despite the fact that around 1.86 million bales of cotton are lying unsold in the country.

KARACHI

M B rANA

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ustoms Court Judge Syed Faiz Rasool Rashdi re-issued nonbailable warrants of the absconding suspects, Zeeshan Akhtar son of Mian Pervaz Akhtar, Zeeshan son of Yousaf, Kashif Hussain son of Kazim Hussain and Muhammad Azam Hussain son of Fazal Hussain, who were booked for attempting to smuggle Q-Mobile phones and other goods in the garb of LED lights. During the hearing, Investigation OfRicer Bashir Bhutto appeared before the court and informed that the suspects were still at large and the customs authorities were trying their best to arrest them. He sought further time for compliance of the court orders, therefore, the court reissued their warrants and adjourned the matter. According to the interim charge sheet, the Anti-Smuggling Organization (ASO) raided Sadder Central Plaza, Karachi, and found a container no-KKFU-72555703 loaded on a trawler noTLT-374. A search was carried out accordingly in presence of two musheers which revealed the presence of a

Saturday December 23, 2017

huge quantity of mobile phones stuffed in the container. The court was informed that subsequently the container loaded on the vehicle was brought to ASO/HQ. A thorough search was conducted in the presence of the said musheers, and recovered 27,200 Q-Mobile phones, 35,790 other assorted brands and models mobile phones, and 531 Amazon tablets

which were smuggled by the suspect in the garb of LED lights. The tentative value of the smuggled goods is Rs 284, 470,000 and the suspect evaded duty and taxes in the tune of Rs 103,702,340 approximately. The investigation officer further informed the court that no suspect was arrest yet, however, they are trying their best to arrest them.

Motorcycle production surges over 31pc

ISLAMABAD

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he production motorcycles surged by 24.78 percent during the Rirst quarter of the current Riscal year against the output of the corresponding period of last year. As many as 693,709 motorcycles were manufactured during JulySeptember (2017-18) against the output of 555,952 units during JulySeptember (2016-17), according to Pakistan Bureau of Statistics (PBS). The production of jeeps and cars during the period also surged by 31.37 percent, the data revealed adding that as many as 57,642 jeeps

and cars were manufactured during the Rirst quarter of the current Riscal year against the output of 43,878 units during last year. The production of light commercial vehicles (LCVs) also increased by 2.28 percent by growing from the output of 7,018 units last year to 7,178 units during the current fiscal year while the output of motorcycles surged by 24.78 percent by growing from 555,952 motorcycle units last year to 693,709 units in the ongoing year. The production of trucks during the period also increased by 36.37 percent, from 1,798 units to 2,452 units while the output of tractors

increased by 115.81 percent, from 7,237 to 7,237 units, the data revealed. The automobiles that witnessed negative growth in production during the period under review included buses, production of which declined from 372 units to 294 units, showing negative growth of 20.97 percent. Meanwhile, on year-on-year basis, the production of motorcycles increased from 186,939 units to 219,820 units, showing growth of 17.59 percent. The output of jeeps and cars increased by 27.09 percent, from 14,513 units in September 2016 to 18,444 in September 2017 while the production of LCVs increased

by 5.47 percent during the month under review by going up from 2,230 to 2,352 The output of tractors and trucks during the month also increased by 117.61 percent and 52.50 percent respectively. The production of tractors increased from 2,453 units during last September to 5,338 in September 2017 while the output of trucks grew from 600 units to 915 units. The production of buses during the month under review decreased by 20.34 percent by falling from output of 118 units last September to 94 units during September 2017, the data revealed.

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Trade turnover between Russia, China up 21.8% in Jan-Nov

World Customs

MOSCOW: The trade turnover between Russia and China for the ﬁrst 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. In the reporting period, the volume of exports from China to Russia increased by 16.6% and amounted to $38.97 bln. At the same time, the volume of imports of Russian goods to China increased by 27.8% to $37.1 bln.

Saturday December 23, 2017

Istanbul police seize 1,725 tubes of cobra venom

china’s mined copper demand to rise in 2018 SHABGHAI

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ISTANBUL

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stanbul police on Dec. 11 seized a total of 1,725 tubes containing cobra venom smuggled from Syria, with a market value of approximately 30 million Turkish Liras ($7.8 million). This amount is reported to be the highest amount ever seized in a raid in Turkey. Upon intelligence received by the directorate of anti-smuggling and organized crime branch, the police contacted a suspect selling the venom under the pretense of buying it. Once the police and the seller met in a pre-disclosed location, the police team revealed their identities. They then seized 1,725 tubes of cobra venom in the suspect’s luggage. The authorities sent some samples from the tubes to the Istanbul University’s Faculty of Pharmacy for examination and launched an

Indonesia sanctions feed wheat imports ndonesia’s Ministry of Trade recently confirmed that it has allowed wheat imports for animal feed. “We have given the permit. Feed millers should have used it for import realisation,” said Veri Anggriono Sutiarto, Import Director of the Directorate General of Foreign Trade. Previously, companies incorporated in the Indonesian Feed Producers Association (GPMT) applied for feed wheat import permit with a volume of 200,000 tonnes for a 3-month requirement. Desianto Budi Utomo, General Chairman of GPMT told Asian Agribiz that wheat is a good substitute for corn although enzyme addition is needed. As of now, corn importation by feed millers is still banned since the government wants to increase local corn production. –CB Report

investigation to determine the suspect’s contacts. The Istanbul antismuggling police recently found 123 tubes of cobra venom hidden in the bottom of the Fatih district’s historic city walls in the beginning of December. The person caught in the most recent operation was determined to have connections with

a Syrian suspect detained in the prior operation. Cobra venom is used in various industries, including medicine, chemistry, cosmetics and arms. Considered to be the world’s second most expensive venom after scorpion toxin, cobra venom is produced in limited amounts in Turkey.

russia Jan-Nov pVc imports down by 62% yoy, exports up 44%

mports of suspension polyvinyl chloride (SPVC) into Russia totalled 46,900 tonnes in the Rirst 11 months of 2017, down by 62% from 123,900 tonnes in the same period last year, according to MRC’s DataScope report. At the same time, Russian producers managed to increase their exports by 44%.l November PVC imports into the country grew to 4,000 tonnes, compared with 581 tonnes in Octo-

ber. A sharp drop in export prices for acetylene PVC (PVC A) in China was the main reason for the increase in imports last month. The peak of imports was in May, with 11,800 tonnes. A reduction in domestic demand and high level of capacity utilisation of local producers led to a serious reduction in the dependence on imports of PVC, while the increased supply of tar in the domestic market forced producers to export more actively. –CB Report

hina is forecast to add 400,000 mt mined copper demand in 2018, due to the anticipated commissioning of new copper smelting projects next year, Jiangxi Copper Corp said in its 2018 copper sector report. The producer said China was forecast to put into use a total of 2.5 million mt/year new blister copper output capacity over 2017-20, with an estimated 440,000 mt/year blister copper capacity to be commissioned in 2018. It said as some of the blister capacity might be commissioned in H2, 2018, thus delaying demand for concentrate, with new copper concentrate demand in China seen at 400,000 mt next year. Jiangxi Copper said Chinese demand for copper concentrate was

expected to rise further in 2019, on the anticipated commissioning of Aluminum Corp of China’s 400,000 mt/year refined copper project at Ningde City, Fujian Province, South China, as well as Yunnan Copper’s 300,000 mt/year refined copper project at Chifeng City, Inner Mongolia, Northwest China next year. The producer said as China’s mined copper output growth could not meet all smelters’ needs, with an estimated of just 80,000 mt new mined copper output in China in 2018, so pressuring down treatment and refining charges. It said the negative impact on TC/RCs were expected by H2, 2018. China imported 15.698 million copper ore and concentrates in January-November, up 2.68% year on year, data from the General Administration of Customs showed. Meanwhile, Jiangxi Copper said China’s restriction of copper scrap imports was expected to spur a periodic reRined copper shortage next year.

turkish economy surges 11.1% in Q3

urkey’s economy grew at a blistering 11.1 per cent in the third quarter for its fastest expansion in six years, data showed on Monday, handily beating forecasts due to government incentives and the base effect after last year’s failed coup. After the data was released, Development Minister LutRi Elvan forecast 2017 growth would be in a band of 6 to 7 per cent. Following last year’s failed putsch, which led to a 0.8 per cent contraction in the third quarter, the government ramped up its stimulus measures including the use of its Credit Guarantee Fund, and

changes to tax regulation. The data beat a forecast of 10 per cent growth in a Reuters poll. Third-quarter GDP expanded a seasonally and calendar adjusted 1.2 per cent from the previous quarter, the data showed. Secondquarter growth was revised up to 5.4 per cent from an initially reported 5.1 per cent, while firstquarter growth was also slightly revised up, to 5.3 per cent.The data showed annual growth of 20.7 per cent in the services sector and 18.7 per cent in the construction sector, with industry expansion of 14.8 per cent. –CB Report

uS Border patrol new orleans sector moves to custom house

NEW YORK

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S Customs and Border Protection (CBP) hosted a ribbon cutting ceremony today to ofRicially open the new U.S. Border Patrol (USBP) New Orleans Sector Headquarters and Station at the historic U.S. Custom House. The

new facility accommodates more than 30 employees in an 11,000 square feet of newly renovated space with state-of-the-art training, meeting space and additional processing and holding capabilities. The project also consolidates USBP workspace with CBP’s OfRice of Field Operations and other stakeholders. U.S. Border Patrol New Orleans Sector cuts the ribbon on

their new location at the historic U.S. Custom House. “Moving Border Patrol operations alongside our valued partners at the historic Custom House is critical to our border security mission.” Said Chief Patrol Agent Jonathan Richards. “With the exception of during Hurricane Katrina, we conducted operations out of the old facility continuously

since 1963. Fifty plus years of history will certainly be missed.” CBP executed this project in partnership with the General Services Administration. CBP leadership attendees included Acting Deputy Chief Scott Luck, USBP New Orleans Sector Chief Patrol Agent Richards, and Border Patrol and Air and Marine Program Management OfRice Division Director Abel Anderson.

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Japan exports imports surge on strong demand in China US OTTAWA: British Columbia, a province of Canada, has sent its first shipment of liquefied natural gas to China, marking a milestone in LNG transportation between the two countries. The 950 gigajoules of gas, about 17 metric tons of LNG, was transported from Canadian company Fortis BC’s Tilbury plant in the Vancouver suburb of Delta. It was shipped by CIMC Enric Holding with container ships. This is the first time for LNG to be exported from Canada to the Chinese market, an event of great significance at a time when China’s demand for LNG is growing rapidly. China is now the world’s third largest LNG importer. According to energy consultancy Wood Mackenzie, the country is expected to surpass South Korea in 2018 and Japan by 2020 to become the largest LNG importer in the world.

Australia iron ore market shipment, revenue and asp forecast by 2017-22 ustralia Iron Ore Market Shipment, Revenue and ASP Forecast by Applications 2017-2022 MarketResearchNest.com adds “Australia Iron Ore Market Research Report 2017” new report to its research database. The report spread across 66 pages with multiple tables and figures in it. Australia Iron Ore Market Report 2017 offered by Marketresearchnest contains a market overview of the industry which talks about market size, product scope, market revenue, growth opportunities, sales volumes and figures, growth estimation in coming years, current industry leaders and their sales/revenue metrics. This study answers several questions for stakeholders, primarily which mar-

Ports & Shipping

Sri Lankan economic growth slows to 3.3% in 3Q COLOMBO

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he Sri Lankan economy grew by 3.3 percent during the third quarter of 2017 (3Q17) compared to the corresponding quarter of last year, with continued contraction in the agriculture sector and slower growth in industrial activity contributing to the low growth rate, according to the Census and Statistics Department. This was slower than the 4 percent GDP growth recorded for 2Q17 and 4.6 percent in the third quarter of the previous year (3Q16). Gross Domestic Product (GDP) for the third quarter was valued at Rs. 2.4 trillion. The services sector, which contributed 56.3 percent to GDP, increased by 4.3 percent year-on-year (YoY). The Rinancial services, telecommunication and human health services each grew by nearly 20 percent YoY, while insurance services grew by 10.9 percent YoY. The accommodation, food and beverage serving

activities expanded marginally, matching the slow growth in the tourism industry. Wholesale and retail trade and other personal services too expanded only marginally. Meanwhile, the industrial sector, which contributed 27.8 percent to GDP, grew by 1.9 percent YoY. Manufacturing activities which represented the largest portion of industrial activities grew by 2.4 percent YoY. One of the largest manufacturing industries; apparel, textiles and

leather, grew by 7.9 percent YoY with the country regaining the GSP Plus preferential trade facility from the European Union, which imports a large portion of such Sri Lankan products. The manufacture of metal products and non-metallic mineral products increased by double digits YoY. However, the industrial sector was weighed down by food, beverage and tobacco production—contributing 8.6 percent to GDP—which fell by 2.4 percent YoY.

Friday December 23, 2017

British exports pick up pace again ritish export growth picked up more momentum at the end of the year as the cheap pound continues to boost firms selling abroad, according to an index to be published today. The export growth index from accountants BDO increased to a reading of 110.3, far above the 100 mark representing the long-term growth trend.The reading suggests British exports may have accelerated further at the end of the year from strong third-quarter growth. The boost in exports over the course of the last 18 months has been caused by a pick-up in the global economy as well as the continued eﬀects from the dramatic devaluation of the pound since the Brexit vote in June 2016. Sterling remains almost 11 per cent weaker against the US dollar than levels seen two years ago, allowing some firms gain higher margins on products, particularly if their input costs are less exposed to foreign currencies. The rate of year-on-year growth in export prices has also increased, suggesting UK exporters are pushing up the price of their goods, although higher input costs may also play a role. –CB Report

chinese exports surge more than forecast ket segments they should focus upon during the next five years to prioritize their efforts and investments. Meanwhile, A blockade continues two days after the Supreme Court ordered unions to abandon a picket line at a Melbourne port, which is preventing the shipping of goods for Christmas. Action started at the Victoria International Container Terminal’s Webb Dock on November 27 over a dispute involving a Maritime Union of Australia worker, creating a backlog of millions of dollars worth of goods, including perishables. At least a dozen people remain at the site of the blockade, after Tuesday’s court order preventing union representatives from continuing the action. –CB Report

SHANGHAI

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hina’s exports surged more than twice the expected pace last month, ofRicial data showed yesterday, as tensions with its largest trading partners Rlare.The healthy trade data is welcome news for the world’s No. 2 economy as Beijing looks to tackle industrial overcapacity, winter pollution and a ballooning debt pile. Exports jumped 12.3 per cent year-on-year to US$217.4 billion (S$294 billion), blowing past the 5.3 per cent forecast in a Bloomberg News survey. “The robust global economy both the developed and developing economies has lifted China’s exports,” economist Yao Shaohua told Bloomberg News. Imports expanded 17.7 per cent to US$177.2 billion, surpassing expec-

tations of 13 per cent. But China’s trade surplus grew last month to US$40.2 billion, suggesting tensions with key markets such as the United States and the European Union are unlikely to let up in the near future. Strains in Beijing’s relationship

with Washington in particular are high – last month’s trade data may fuel the Rire, with China’s trade surplus over the US ballooning 18.8 per cent year-on-year, in yuan terms. US President Donald Trump has taken an aggressive stance on trade, vowing to reduce bilateral trade

deRicits – particularly with China. In Beijing last month, Mr Trump said he did not blame China for taking advantage of past US administrations on trade, but indicated he would level the playing Rield for American companies. “After my tour of Asia, all Countries dealing with us on TRADE know that the rules have changed,” he tweeted following the visit. His administration has raised the number of tariffs and trade cases against China. Last month, the Commerce Department launched a probe into some of China’s exports on its own initiative, rather than at the behest of companies, for the Rirst time in a quarter-century. That followed new tariffs on Chinese aluminium foil and plywood imports, among others. Many of these tariffs are applied under a US determination that China is not a market economy.

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E&T operation against unregistered vehicles continues Saturday December 23, 2017

Business

SARGODHA: The Excise and Taxation (E&T) department, during ongoing operation against vehicles defaulting on fitness certificate and illegal number-plates have challaned 256 vehicles, warned 132 and removed 370 illegal number-plates. According to Director E&T Mushtaq Afridi, the teams of E&T department were conducting checking at various points of the division had also challaned 112 vehicles over shortage of token tax and other illegalities. The officials also warned 132 vehicles and asked for completion of documents while removed 370 illegal numberplates from vehicles.

pak-oman ties to be taken new heights: Ayaz ISLAMABAD

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peaker National Assembly Sardar Ayaz Sadiq said that Pakistan greatly values its cordial relations with Oman and the decades old warm relations between the two countries need to be taken up to new heights through economic and parliamentary cooperation. The Speaker was talking to the Ambassador of the Sultanate of Oman, Al Sheikh Mohammed Omar Ahmed Al Marhoon who called on him in Parliament House, said a press release. While discussing an entire gamut of Pakistan-Oman relations, cooperation at multilateral forums and

SBp clarifies financing gap figures KARACHI

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review regional peace and security, the Speaker said, “Pakistan attaches immense importance to its fraternal relations with Oman. The bilateral relations are historical, deeprooted and based on commonalities

7,430 cases registered, 7,381 arrested against human traﬃcking

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he Central Bank has clarified that the estimate of financing gap for FY18, attributed to Governor SBP, appearing in today’s newspapers is misconstrued. In a statement the State Bank of Pakistan (SBP) stated that it appears that the numbers have been confused with the gross external financing requirements of the country.Financing gap is the difference between country’s estimated gross financing need and available financing.

of faith, culture and traditions.” “Geographical proximity between Pakistan and Oman can offer a great scope to both countries to step up the bilateral relationship between the two countries,” Sardar

Ayaz Sadiq said. He said that present government has created conducive environment for foreign investment by introducing various incentives and reforms in the economic sector. Ayaz Sadiq said that friendship and cooperation between both the countries serve the fundamental interests of the two countries. He also asked the ambassador to convey his invitation to his Omani counterpart to visit Pakistan. Al Sheikh Mohammed Omar Ahmed Al Marhoon termed relations between the two sides as historic and unique. He appreciated the kind remarks of the Speaker and said that Oman considers Pakistan as its brother and wants to further cement the ties through rejuvenating parliamentary contacts and exploring possible avenues of economic cooperation.

ISLAMABAD

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ederal Investigation Agency (FIA), as part of its countrywide campaign, have registered 7,430 cases of human trafRicking and nabbed 7,381 persons involved in this crime during two years. A breakup of registered cases against human trafRickers showed that during year 2016, of the total 4096 cases, 3349 were registered in Punjab, 140 in Khyber Pakhtunkhwa (KPK), 77 in Sindh, 181 in Balochistan and 349

cases in Islamabad Capital Territory (ICT). Similarly, during 2017, of the total 3334 registered cases, 2784 were registered in Punjab, 85 in Khyber Pakhtunkhwa (KPK), 82 in Sindh, 59 in Balochistan and 324 cases in Islamabad Capital Territory (ICT). The total number of persons arrested and involved in human trafRicking during 2016 was 4233. Of the total, 3635 were arrested in Punjab, 138 in Khyber Pakhtunkhwa (KPK), 29 in Sindh, 11 in Balochistan and 420 arrests were made in Islamabad Capital Territory (ICT). During 2017, the number of persons

arrested and involved in human trafRicking was 3148. Of the total, 2746 were arrested in Punjab, 69 in Khyber Pakhtunkhwa (KPK), 31 in Sindh, 04 in Balochistan and 298 arrests were made in Islamabad Capital Territory (ICT). When contacted regarding action taken against trafRickers/agents who were involved in Turbat incident in which 15 persons lost their lives recently, sources at Interior Division on Thursday said a video was uploaded on social media on November 15, 2017 regarding murder of 15 innocent Pakistani nationals in Turbat, Balochistan.

IrSA’s canals to be closed for de-silting from Dec26 ISLAMABAD

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he Indus River System Authority (IRSA) has decided to close down canals for annual maintenance and de-silting between December 26, 2017 and January 31, 2018 during Rabi 2017-18. Oﬃcial sources told APP here, under its water discharge plan for the Dec 26-Jan 31 period, the Authority would release 10,000-12,000 cusecs of water from Tarbela dam and 8,000 cusecs from Mangla dam to meet the drinking water requirements. Under the plan, the canals from both Trimmu and Trimmu Sidhnai Link would remain closed between Jan 10 and Jan 27. The SMB canal and Didhnai Canal would remain closed from Jan 11 to Jan 28 and the Lower Pakpattan canal from Jan 12 to Jan 29. The canals from Panjnad would be closed between Jan 5 and Jan 22 and from Taunsa between Dec 31 and Jan 17. The Kotri barrage would remain closed from Dec 25 to Jan 10 and Sukkur barrage between Jan 6 and Jan 20. The Lower Jhelum canal and the Rasul-Qadirabad and Qadirabad-Balloki canals would be kept closed from Dec 26 to Jan 12 while Lower Bari Doab and BallokiSulemanki link canal would remain closed from Dec 29 to Jan 15.

pakistani It companies won recognition at international forums ISLAMABAD

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akistani companies have repeatedly won recognition at international forums and count world’s largest and most reputable entities among its regular clients, said managing director Pakistan Software Export Board (PSEB) Iftikhar Shah. He said, at yearly APICTA Awards,

Pakistani IT companies have consistently won top awards and several Pakistani IT companies are ranked among the fastest growing companies in Pakistan. The presence of international IT companies in Pakistan, such as IBM, Intel, Huawei is a vote of conRidence in Pakistan’s potential as an IT destination. He said, PSEB has launched several programs to bolster the local IT Industry these include IT company capability development

through international certiRications such as CMMi (28 companies), 9001 (110 companies), ISO27001 and ISO20000 (24 companies). These coveted certiRications make it easier for IT companies to solicit business from overseas entities, he added. Pakistan is ranked as the 4th most popular country for freelancing in the Online Labor Index published in 2017 by Oxford Internet Institute (OII) and is consistently ranked among the top

destinations for ICT outsourcing as a result of strong government efforts and stellar commitment to the growth of the IT sector in Pakistan. There are already plenty of Pakistani IT companies working in international arena mainly named as ‘Mindstorm Studios’, ‘GameView Studios’, ’Pepper PK’ and ‘TkXeL’ etc. From these companies, ‘TkXel’ has created mobile applications and gaming companies from a university lab in Lahore while Pepper PK

made history by developing paid BlackBerry applications which reached top rankings on BlackBerry’s App World store. Tintashhas designed many innovative casual games for iPhone, iPad, and Android platforms. Games are not the only avenue on the mobile platform that Pakistani companies are focusing on, bit a number of companies have looked at broader educational and infotainment markets.

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RSM UK reports 9% revenue rise LONDON: RSM UK has announced a 9% increase in revenue to £319m for the financial year ending 31 March 2017. The firm saw growth across all core service lines, particularly in consulting, human resource and legal services, in which revenues increased by 46.6% to £16m. Other key areas of growth included risk assurance, which grew by 14.6% to £25m, restructuring advisory which grew by 9.6% to £39m and tax and advisory, which grew by 8.6% to £138m. Consolidated UK company profits increased by 16% to £5m while RSM UK’s profits rose by 15% to £49m. Laurence Longe, RSM’s Chief Executive Officer said: “This year’s excellent financial results very clearly show the commercial benefit of the major investment that has been made in first reshaping and then rebranding the firm following the absorption of the former Tenon business in 2013.”

Apwc to discuss issues related to women entrepreneurs

Saturday December 23, 2017

Chambers

twin cities businessmen demands detailed information on cpEc

RAWALPINDI

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omen being the representatives of 50% population of the country are resilient and committed towards the prosperity of the country. All Pakistan Women Chambers Presidents’ Summit will give them an opportunity to discuss the issues related to women entrepreneurs and I am hope full that they will come out with a collective wisdom which will be translated into formation of better national economy. We being member of parliament do the same and we all wants interaction and consultation with the executive. Pakistan surely will move forward once we all opt the collective wisdom passage and history

told us the same and we have observed that Pakistan suﬀered when individual and one person base policies were processed. The remarks made by chairman senate while addressing . RCCI All Pakistan Women Chambers Presidents Summit at a local hotel at Rawalpindi. He said that basic system must be strong enough to counter these odds so that others with in system not get power. Once we have five diﬀerent standards of law, the rule of law will not prevail, he added. He said the country can get stability once we have rule of law. Institutes, once get powered will help to policy gets strong and once we have strong policy with collective wisdom, the economy will be strong. And country will move forward. The chairman also said that the responsibility lies on political parties to show maturity and if they start saying that the government has five days , two weeks, a month time.

ISLAMABAD

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he business community of Rawalpindi and Islamabad has called upon the government to share full information of CPEC project with the private sector as holding back its complete detail was creating many concerns in the local businessmen.This was the upshot of a discussion between the twin cities business community when a delegation of Rawalpindi Chamber of Commerce and Industry led by President Zahid Latif Khan visited Islamabad Chamber of Commerce and Industry. Nasir Mirza Senior Vice President, Khalid Farooq Qazi Vice President, Sohail Altaf Group Leader, former Presidents and executive members of RCCI were in the delegation. In a joint statement, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry and Zahif Latif Khan, President, Rawalpindi Chamber of Commerce & Industry said an industrial zone under CPEC was planned for Rawalpindi & Islamabad, but gov-

ernment has not consulted with the chambers of the twin cities about its location and the industries to be set in it, which was regrettable. They stressed that the said industrial zone should be established in consultation with the chambers of twin cities. They said that the business community of twin cities was supportive of the CPEC project as it has created lot of hopes for the country,

but their only concern was that the local industry should not get hurt in any manner from this project. They said businessmen wanted to know the detail of incentives government has Rinalized for Chinese and local investors for investing in CPEC and tax concessions for Chinese and local industrialists on import of machinery, but such important information was not made

oil companies in Brazil will get tax breaks BRASILA

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razil’s Chamber of Deputies rejected an amendment passed by the country’s Senate and upheld a bill that guarantees tax breaks to the world’s largest petroleum companies operating in the country until 2040. December, the Senate had amended the Chamber’s bill for the Riscal breaks to be given only until 2022. “I think this bill is scandalous since it ends the (government’s) local content policies, generates jobs outside the country and renders tax breaks of billions of dollars to oil companies,” complained Senator Lindbergh Farias before the Senate amendment. The bill, passed by the Chamber of Deputies on Wednesday, does away with taxes on assets di-

rected towards the exploration, development and production of oil and natural gas to be used in the Brazilian domestic market. Fiscal breaks will also be given to the import or acquisition of raw

materials and intermediate products used in the sector. For those executives working in the sector the announced tax breaks will help to increase investments in the country. “

public as yet. They said the business community was key stakeholder in CPEC and government should have taken the local private sector on board from the very beginning so that businessmen could prepare themselves to maximize business prospects from this mega development project, but keeping them in the dark about key information was creating many concerns.

Zhao Lijian appreciates pcJccI endeavours hinese embassy’s Charge D Aﬀairs Zhao Lijian on Tuesday appreciated Pak-China Joint Chamber of Commerce and Industry (PCJCCI) for undertaking a successful move to bridge the communication gap between peoples of China and Pakistan. In a meeting with PCJCCI President SM Naveed and Secretary General M Salahuddin Hanif here, he acknowledged the contribution of the joint chamber in this regard and especially applauded the initiative of publishing the first Chinese-Urdu dictionary and Chinese Language Learning Book in Pakistan. He was of the view that platforms like PCJCCI, promoting and facilitating common people for acquiring Chinese language knowledge. –CB Report

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Peshawar Customs Intelligence auctioning 22 vehicles today PESHAWAR: The Directorate of Intelligence and Investigation (Customs), Peshawar is auctioning the conﬁscated vehicles on December 22 (today) at State Ware House, Peshawar. The following vehicles to be presented for auction: Toyota Corolla Stat Car Model 2001, Registration Number ZB-827, Chassis Number CE102-0006085 Toyota Hilux Pick-up Model 1991, Registration Number C-4817, Chassis Number LN80-0001794 Honda City Motor Car Model 2005, Registration Number LZG-5000, Chassis Number NFBGE15A75R121659 Toyota State Motor Car Model 1993.

Saturday, December 23, 2017

CUSTOMS BULLETIN

collector gul rehman orders investigations into illegal checking of consignments IRFAN BAHADUR wAQAr AHMED ANSArI www.customsbulletin.com

ollector Model Customs Collectorate Gul Rehman has taken serious notice of the complaints made by several importers against checking of the consignments, already cleared by dry ports and Customs Appeasement sections, in violation of the customs laws. Talking to Customs Today, Mr Rehman said that earlier importers complained that some ofRicials of the Frontier Constabulary (FC) allegedly were involved in opening the sealed containers on their way from Karachi Sea Port to Peshawar Dry Port and en-route to Afghanistan via Torkham Border in violation of the orders of the Federal Board of Revenue (FBR). The collector said that a stern action would be taken against the customs ofRicers who demand checking of already cleared goods by any section of the Pakistan Customs. He said that he has ordered investigations into illegal checking of the consignments by customs ofRicials. The collector also said that black sheep might exist in the department but no leniency would be shown to them

once a complaint reached against them. Mr Rehman also directed the formation of a special unit to monitor the activities of Customs ofRicials throughout the PakistanAfghanistan Trade and Transit route. The SRO 486(I) 2007 issued by the FBR has clear direction for ofRicials not to check the vehicles already

cleared by dry ports and Customs Appraisement. After clear directions, which have been issued by FBR, it would be gave violation of the customs acts to frustrate importers and seek bribe from them; the collector said. Earlier, the department directed the transporters and importers to clear their position on the

blame of smuggling spare parts from sea ports and dry ports to different markets of the country. A campaign has been launched to maintain good reputation of the Pakistan Customs. The sources in Directorate of Intelligence and Investigation of the FBR, Peshawar, on condition of anonymity, informed Customs Today

that Director I&I FBR Peshawar Saleem Khan has already directed all inspectors not to create troubles for importers on their way from Karachi to Torkham. However, he said that no complaint had been registered against checking of vehicles already sealed by dry ports and Customs appeasement.

customs seeks guidance on import duties of Electric Vehicle LAHORE

M IMrAN MEHAr

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he customs authorities have requested the Federal Board of Revenue (FBR) for giving the beneRits of concessionary rates of duties and taxes on the import of environment-friendly ‘electric vehicle’ (EV) as applicable in case of ‘hybrid electric vehicle’ under the SRO 499 (1) /2013 dated

12.6.2013. Sources told CT that the FBR is examining the issue in the light of practice in the Rield formations and expected to issue a clariRication after the completion of the exercise. The collector of customs has raised the question whether a complete electric vehicle is entitled to beneRit/concession of duties and taxes available to electric hybrid vehicle in terms of SRO 499(I)/2013. According to Jameel Nasir, Collector Model Customs Collectorate (Appraisement) Dry Port Lahore, the facts of the case in brief are that one Mian Ahmad

Irfan s/o Muhammad Noorullah imported an ‘electric vehicle’ (EV) of model 2016 bearing chassis No. 5YJSB7E21GF137160 under the Lift Scheme and Riled GD No. 792 dated 24.10.2017 through Sanasu Traders, Customs Clearing Agent. As per examination report, the imported vehicle is “used Tesla fully electric car S70 fuel, electrically 193 kw, model 2016, dual motor, four-wheel drive with standard accessories. At the time of assessment, the importer contended that the vehicle is entitled to beneRit/concession of duties and taxes available

to the “hybrid electric vehicle” on the analogy that both types of vehicles are environment-friendly and that the electric vehicle imported by him is far better from the perspective of environment compared to fossil fuel vehicles and hybrid electric vehicles. It generates no pollution and noise. The importer further contended that the vehicle squarely falls under ‘hybrid electric vehicle’ (HEV) in terms of SRO 499(1)/2013 dated 12.6.2013, the collector letter said. Since no evidential record/data of such vehicle is available, the request of importer

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).

for provisional assessment was acceded to. The said vehicle was assessed under the PCT 7803.8090 attracting customs duty of 50 percent, sales tax 17 percent, withholding tax 9 percent and additional customs duty 1 percent. He further contended that since no cubic capacity of the vehicle is available therefore federal excise duty @ 10 percent is also not attracted in this case. Out of total amount of duties and taxes of Rs6.7million, the differential amount of duties and taxes including FED (Rs3.9million) has been secured in the shape of pay order.