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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

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Karachi, Tue December 27, 2016

ISLAMABAD

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ederal Finance Minister Ishaq Dar has reviewed measures taken by the Federal Board of Revenue (FBR) for increasing the direct tax collection and directed the Board to prepare a comprehensive plan that may be implemented through the next Finance Bill.

The Oinance minister conveyed directives to FBR chairman Nisar Mohammad Khan during a meeting held in the Oinance ministry, which was also attended by other senior ofOicials of the board and the ministry.

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According to a spokesperson for the ministry, the minister gave several directives to the FBR team. “The Oinance minister directed the FBR chairman to prepare a comprehensive plan that may be implemented through the next Oinance bill,” he said.

The FBR chairman briefed the minister on different models adopted by some countries to increase the direct collection of taxes. The FBR officials also presented different models of direct tax collection along with the necessary framework to generate more revenue. Dar also instructed the FBR to take all measures that would facilitate the voluntary taxpayers/filers. “There should be a clear distinction between filers and non-filers,” he said.

Peshawar Customs seizes 4.5kg of gold from passenger arrived from Dubai

Customs Preventive to hold competition to highlight dept role:Zulfiqar Younas

Bilal for using food graded packaging material

Automation will bring transparency in customs clearance process:Chief Samaira

Faisalabad ASO seizes non duty paid garments during crackdown

ThestaffofCustomsdeputedatBKIAP Peshawaroninformationrecovered39gold | SEE PAGE 02 |

For the first time in the history of Pakistan, the MCC Preventive has organized | SEE PAGE 03 |

Provincial Minister for Food BilalYaseen said that non food graded packaging | SEE PAGE 04 |

Chief Collector Samaira Nazir has said that automationsystemwillensuretransparency | SEE PAGE 14 |

TheASOseizednondutypaidgarments marketvalueofseizeditemsisRs7,05,149 | SEE PAGE 16 |

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DGTR holds training session regarding Electronic Import Form Tuesday, December 27, 2016

National

KARACHI: The Directorate General of Training and Research (DGTR), while following the directives of the Federal Board of Revenue (FBR), has issued a training schedule for importers and clearing agents with regard to the use of Electronic Import Form (EIF).

Through a circular, the DGTR has announced that the training session will commence from December 19 to 21 at the old Customs House building. The timings of the session are from 9am to 2pm without a break.

During the session, the customs officers and other experts would deliver lectures to the participants on the use of EIF while filing the goods declaration.

Peshawar Customs seizes 4.5kg of gold from passenger arrived from Dubai

FAISALABAD

ISLAMABAD

NAEEM SHEIKH

TARIQ DERYA

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n special instructions of Additional Collector Saeed Asad Anti Smuggling Organization (ASO), Faisalabad conducted various operations against smugglers and recovered smuggled goods worth Rs1.493million during second week of December, 2016. Sources told Customs Today that Deputy Collector Muhammad Rizwan constituted a team to curb smuggling included Saeed Akhtar Joiya (superintendent), Ali zahid, khalid Ashraf Noor, and khalid Dogar (inspectors), Muhammad Ashraf, Liaquat Ali, Israr Ahmad and Muhammad Abdullah (sepoys). During the checking of vehicles the ASO impounded two non-duty paid vehicles worth Rs1.050 million under section (U/S 157). These vehicles were brought into the country without payment of custom duty and taxes and used in smuggling purpose for transportation. During the various actions the ASO team also recovered foreign origin F/O cloths (355-Kgs), worth Rs183750 and miscellaneous goods worth Rs260,000 during the said period. Faisalabad ASO seized all items under section of Import and Export Control Act 1950 punishable under Section 156(1)89(i) 90 of the Customs Act 1969 and forward the cases to Customs Adjudication Faisalabad for legal action.

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he staff of Customs Collectorate deputed at Bacha Khan International Airport (BKIAP) Peshawar on information recovered 39 gold bars weighing 4.5 kilograms from a passenger who was coming from Dubai to Peshawar via Air Blue Olight number PA- 611.

Assistant Collector Ashraf Ali told Customs Today that on credible information that a passenger coming from Dubai carrying a huge quantity of gold will enter Pakistan via Peshawar on Air Blue.

He said that the Customs staff enhanced checking measures and intercepted the gold smuggler during scanning of bags, adding that the smuggler was smartly trying to escape but airport staff chased him and arrested him from airport premises. He told that the total value of seized gold in international market is Rs18 million. Sources said that the arrested smuggler was later identiOied as Yousaf Rehman, a resident of Peshawar. He smartly concealed the gold in a bag and shoes.

The Additional Collector Fazle Samad also visited the airport after this seizure and appreciated the Customs staff of BKIAP for intercepting huge quantity of smuggled gold. He said that passenger Yousaf has been arrested and further investigations are still underway. As-

Faisalabad ASO seizes smuggled goods worth Rs1.493m

sistant Collector Ashraf Ali said that this was second gold seizure during past 30 days at BKIAP. Meanwhile, Custom’s Anti-Smuggling Organization (ASO) has seized non-duty paid goods worth Rs 2.53 million along with offending vehicle from Islamabad territory. Deputy Collector Shahid Jan told Customs Today that on the advice of Collector Dr Arslan, the ASO is performing with better techniques to control

smuggling in the jurisdiction of the collectorate. He said that in pursuance of information received from sources, the ASO intercepted the offending vehicle Isuzu bus bearing registration No.LZR-1758 and seized a huge quantity of smuggled goods from GT Road near Chungi No 26. After the interception of the vehicle, the ASO staff asked the owner of the smuggled goods to provide relevant documents but he failed to

show any proof regarding the goods.

Shahid Jan said that ASO staff seized the smuggled vehicle worth Rs 1.5 million as well as 600 dandas of foreign origin Pine cigarettes worth Rs 0.252 million.

He added that the ASO also seized 100 dandas of foreign origin Milano cigarettes worth Rs 0.042 million, and 147 kilogram velvet cloth worth Rs 0.077 million besides other goods.

Customs Intelligence lodges FIR against fabrics smugglers T

FAISALABAD

NAEEM SHEIKH

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he Faisalabad Customs Intelligence and Investigation has lodged an FIR against three suspects namely Muhammad Nasir Dourani, Muhammad Kamil, and Muhammad Razaq proprietor of M/s N.N International Lahore who are involved in smuggling of Chinese origin polyester grey textile fabric.

The market value of textile fabrics is

worth Rs 55,62813 involving customs duty and taxes Rs 4,00,00,000.

According to details, the intelligence team intercepted a trailer bearing registration no. TLH-277 loaded with container no. CAXU9934075 near Toll Plaza Jaranwala Road Faisalabad and seizes trailer and polyester grey textile fabric under Customs Act 1969.

During inquiry it was revealed that container was shipped from Chinese port Guangzhou to Karachi port through Vessel “Batam Trader”

whereas the print out of display vessel Voyage as provided by the APL Faisalabad ofOice reOlects that the journey route of vessel Batman Trader is from Jabel Ali to Karachi and not Guangzhau to Karachi. The custom team asked the accused persons to show legal documents and invoices of import item but they remained failed to show any relevant documents. After their failure Customs Intelligence team seized the polyester textile fabrics and lodged an FIR against nominated accused

person under section U/S 2(s) 16,32, 32A, 157(2), 178 of the Customs Act 1969. Meanwhile, The Customs Intelligence and Investigation has seized smuggled items worth Rs8.645 million involved in tax duty of Rs1.510 million during Second week of December, 2016. As per the details ofOicial told Customs Today that in the seized items included two non-duty paid vehicles worth Rs600,00 being used for smuggling transportation. Following the directions of Deputy Director Riaz Hus-

sain the intelligence team conducted various raids to foil smuggling attempts in the region. The customs intelligence seized computer systems etc worth Rs 6.858 million involved in customs duty of Rs932,955. These computers system loaded on Container No, HLXU835750-5. In another action the customs intelligence team seized LCDs, monitors of different brands worth Rs1.787 million involved in duty of Rs1.510 million loaded on Container No, CAIU-812436-0.

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FBR collects Rs1180b duty & taxes till Dec 15 ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs.1196 billon of revenue in first five and half months (till December 15) of current financial year while Rs 1180 billion were collect during same period of last fiscal year 2015-16.

Sources told Customs Today that that FBR has collected Rs.452 billion in the head of income tax, as compare to last year in same period collection was Rs.436 billion.

In the head of sales tax, Federal Board of Revenue has collected Rs.526 billion while Rs.551 billion were collected during the same period of FY 2016-17. FBR has collected Rs.75 billion in head of federal excise duty (FED) as compare to Rs.71billion last year.

Tuesday December 27, 2016

National

Traders appeal govt to take measures to make EPZ functional

Customs Preventive to hold competition to highlight dept role: Zulfiqar Younas

SIALKOT

SALEEM AWAN SHEIKHU www.customsbulletin.com

he Export Processing Zone (EPZ) Sialkot had been lying nonfunctional for the last 15 consecutive years as the EPZ had yet could attract only eight exporters to establish their factories there since its establishment. Most of the Sialkot exporters said that though several trade and export related incentives were available at Sialkot EPZ, but it was still very hard for them to establish their industrial units at there. Export- oriented Sialkot city’s all the main trade bodies including Sialkot Chamber of Commerce and Industry (SCCI) have expressed grave concern over the sorry state of affairs at Sialkot EPZ.

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FBR starts digitally serving notices to non-filers KARACHI

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he Federal Board of Revenue (FBR) has started digitally serving notices to non-filers of income tax returns for various years. According to the sources, the auto-generated notices were digitally sent to taxpayers through the Iris – the online system of the FBR. The FBR has already announced that it would take ‘harsh’ actions against non-filers from audit to fine and penalties after the last date (Dec 15) of returns filing. Sources said the notices are being sent under subsection 1 of Section 122C, asking the taxpayers to file their returns of the past six years. After 45 days, the assessment made by the tax authorities will be treated as final. Besides, the tax authorities will also impose penalties for the delayed filing.

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LAHORE

M HAYAT

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or the Oirst time in the history of Pakistan, the Model Customs Collectorate Preventive has organized a poster competition for young and old artists.

The main objective of the competition is to create awareness among the general public about role of the Customs Department in the protection of economic frontiers of the country. This was informed by Collector of Customs Preventive ZulOiqar Younas while giving a detailed brieOing to Customs Today here.

The collector said that it was also meant to encourage the young and budding artists to groom their artistic faculties by participating in a healthy competition. In order to make the competition more attractive and to get good quality posters, a cash prize of Rs 200,000 will be given to the best poster, the second prize of Rs 100,000 will be given to the second best poster and the third prize of Rs 50,000 will go to the third best poster. Special merit certiOicates will also be awarded to the selected poster makers.

Younas added that the theme of the competition is ‘Role of Customs in Development of Pakistan’. The Customs Department plays a significant role in trade facilitation, protection of society, effective border management and revenue collections. The collector explained that

the posters were expected to delve on one of these broad themes. On more detailed level, the Customs Department has a pivotal role in combating smuggling and effective enforcement of intellectual property rights regulations.

Similarly, ensuring quality and standard of import and export products is yet another important function performed by the Customs Department. It is also actively facilitating supply and value chain

In order to make the competition more attractive and to get good quality posters, a cash prize of Rs 200,000 will be given to the best poster, the second prize of Rs 100,000 will be given to the second best poster and the third prize of Rs 50,000 will go to the third best poster

ANF seizes drugs worth Rs 66m in crack downs

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RAWALPINDI

CUSTOMS BULLETIN REPORT

www.customsbulletin.com he Anti-Narcotics Force (ANF) has recovered drugs worth Rs 66 million in the international market and arrested 16 drug traffickers, besides seizing two vehicles in 16 countrywide operations.

ANF Rawalpindi arrested Awal Khan, a resident of Attock, and recovered five kilograms of Hashish concealed in his luggage. ANF Peshawar intercepted a Toyota

Corolla car near Haji Camp bus stand and recovered 25.2 kilograms of Hashish. Two people, Muhammad Arif and Sadat Iqbal, were arrested. In another operation, ANF Peshawar Road Check Team recovered two kilograms of Hashish from an accused named Ihsan Ullah. In yet another operation, ANF Peshawar Road Check Team recovered six kilograms of Hashish from the possession of Razia Perveen and Gulnaz Bibi. The ANF Peshawar Airport Team arrested Mu-

dassir-ur-Rehman at Peshawar Airport while he was boarding a PIA Flight, PK 217, to Abu Dhabi and recovered 770 grams of Hashish.

The ANF Airport Team arrested Ismail Khan, a resident of Karachi, at Faisalabad Airport and recovered 700 grams of amphetamine. ANF Peshawar Airport Team arrested a passenger, Imran Khan, on suspicion of his having swallowed heroin-filed capsules. Later, 290 grams of heroin were recovered from the heroin-filled capsules.

systems of trade and industry by providing swift and hassle free clearance of import and export cargoes, he said, adding that in order to facilitate selected critical industries, the Customs Department also allows on-site clearances. “The Customs Department boasts one of the state of the art and most modern automated customs clearance system in the region, which is called Web Based One Customs (WeBOC).

Faisalabad Custom forms team for audit he Customs Collectorate Deputy Collector Usman Tariq has constituted a special teams in order to streamline the audit of DTRE scheme, manufacturing bonds, licensed under SRO-450(I)/2001 and export oriented unit (EOUs) licensed under SRO-326/327(I)2008 and other audit assignments given by the Collector Zulfiqar Ali Chaudhary.

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PDWP okays 63 development projects worth over Rs 27b PESHAWAR: A meeting of Provincial Development Working Party (PDWP) chaired by Additional Chief Secretary Muhammad Azam Khan here Friday approved 63 development projects costing Rs 27,262.803 million (over Rs 27 billion).

The forum considered 70 projects pertaining to different sectors including Elementary & Secondary, Higher Education, Sports & Tourism, Relief & Rehabilitation Department, Local Development, Special Development Unit, Local Development, Roads, Water, Home, Law and Justice, Industries, Science, Technology and Information Technology, Transport and Health sectors for the uplift of the province.

Tuesday December 27, 2016

Business

Bilal for using food graded packaging material LAHORE

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rovincial Minister for Food Bilal Yaseen said that non food graded packaging material was being used for packaging of milk and dairy products, which was hazardous for human health and life.

He expressed these views in a meeting during his visit to a private manufacturing company of food graded packaging products. He said the Food department would not tolerate usage of “blue drum” for milk and dairy products across the province. Those who were playing with lives and health of people

SBP declares rental coupon rate for 3-year KARACHI

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tate Bank of Pakistan on Friday declared 6th rental coupon rate for three-year Government of Pakistan Ijara Sukuk (GIS). The coupon rate is 3.9792 percent. The sukuk was auctioned on June 20, 2014, said a SBP statement.

This profit rate will be applicable to all accepted bids in this auction. The rental rate may be adjusted on the basis of difference between estimated supplementary rental and actual maintenance expenses of the underlying assets as explained in DMMD Circular No. 10, dated June 17, 2014.

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would be strictly punished, he added. The Minister said that presently manufacturers of food packaging companies were working

according to their self designed SoPs which was unacceptable. Food department would start soon registration and regulatory mechanism of

companies of those manufacturing food packing materials, he added.

He said that in food sector there was huge gap where private and public sector could produce positive results jointly. He said, “In Punjab we can follow international model in collaboration with private sector.”At this occasion Bilal Yasin directed the food department to prepare a comprehensive strategy on registration of these factories and work under public-private partnership. Minister insisted to provide awareness for lay man, local markets and manufacturers for using food graded packaging material only. CEO of Private Company along his team gave brieOing to the Minister. He said that private sector was ready to cooperate with the Food department.

Plea bargain only option to get back public money from corrupts: NAB DG B QUEETA

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alochistan National Accountability Bureau (NAB) Director General Major (R) Tariq Mehmood Malik Friday said plea bargain is the only option to get back the looted money of the people from accused of the mega corruption case.

“Through plea bargain, NAB has been able to recover approximately Rs 3 billion against Rs 2.24 billion embezzlement in Balochistan mega corruption scam,” he said in a statement.

The NAB, he said, made a history by recovering Rs 3 billion. The recovered amount would be handed over to the Balochistan government enabling it to spend it on the welfare of the people of Balochsitan. “The amount misappropriated from the local government funds was meant for the uplift projects of Balochsitan and as per law and plea bargain was the only speediest option to take back this money from the accused paving way for the government to spend this money on the welfare of the people of Balochistan.” Refuting media reports about the volume of amount involved

in the mega corruption case, the DG NAB clariOied that an amount of Rs 6 billion was allocated in budget for the year 2015-16 as grant-in-aid to the local councils for salary, non-salary expenditure and development of local councils. He said the NAB received an information that local government funds were being deviated in huge quantities to some speciOic constituencies and were being embezzled. An inquiry was initiated in May 2016 on M.C Mach and Khaliqabad during which it was established that an amount of Rs 2.31 billion had been released to both committees.

Punjab govt, Huawei to join hands for E-solutions LAHORE

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he Punjab government in collaboration with Huawei Technologies Pakistan Pvt Ltd is going to kick off Huawei E-Health Care & E-Education solutions pilot projects in the province. Huawei Technologies Company has agreed to set up E-services pilot projects in four hospitals, a university, a college, a high school and an elementary school in Punjab as its pilot projects free of cost. Chairman Planning & Development Punjab Jahanzeb Khan announced this while addressing the agreement signing ceremony between Huawei Technology Pakistan Company and Punjab Government held here at P&D Complex. Representatives of Punjab Government, Secretary Specialized Healthcare Punjab Najam Ali Shah, Secretary Primary & Secondary Health Care Ali Jan and from Huawei Chief Executive Officer Saif-Chi mutually signed the agreement documents on the projects at the ceremony chaired by the P&D Chairman. Addressing the agreement signing ceremony, Chairman P&D Jahanzeb Khan welcoming the foreign guests, said that the Punjab Government remained committed to uplift the health and education sectors with the technical assistance of global companies.

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New highways projects to transform road landscape ISLAMABAD

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ith the completion of under-construction motorways and highways projects in next few years, road landscape in the country would be transformed and Pakistan will become hub of regional trade. In an interview to APP, National Highway Authority (NHA) General Manager Design Asim Amin

said that Prime Minister Nawaz Sharif has given the task to NHA for early completion of these road projects which also include alignments of China-Pakistan Economic Corridor. These roads will open new vistas of opportunities for the people of the adjacent areas, he added. Asim said that completion of ongoing NHA projects, most of which are being constructed in comparatively less developed areas of country especially Khyber Pakhtunkhaw and

Balochistan will help end the sense of deprivation among the people.

The projects will prove catalyst in transformation of the destiny of the people of Pakistan in general and the less developed area in particular.

He said presently either road projects are being executed or are at planning stage in all parts of Pakistan. He said that Allah Almighty has bestowed Pakistan with such geography that about 40 per cent of world population lives in its vicinity

and it can act as a gateway between the most populous countries of the world India and China. The NHA GM said that the main objectives of NHA are to develop high speed northsouth economic corridor, provide linkages with Gawadar Port and enhance regional connectivity. Asim Amin said that presently the NHA’s portfolio has crossed Rs 1000 billion which used to be 50 to 60 billion a few years back. To a question, he said that China-Pakistan

Economic Corridor (CPEC) is the name of building roads from Khunjerab to Gwadar.A number of sections of this mega project he said have been completed and remaining sections are under construction. He said 335 km KhunjerbRaikot section of the Karakoram Highway (N-35) has already been upgraded while for upgradation of Raikot-Thakot section of the highway damaged during 2010 floods, China has given $ 70 million.

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SIALKOT

SALEEM AWAN SHEIKHU www.customstoday.com

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he Federal Board of Revenue (FBR) has assigned Rs 35.265 billion revenue target to Model Customs Collectorate (MCC) Sialkot for Oiscal year 2016-17 while it collected Rs 28.233 billion during last year.

According to details, the Chairman FBR Nisar Muhammad Khan assigned the revenue generation target to the Model Customs Collectorate. The customs sales tax revenue target for current Oiscal year will be Rs 22.1 billion while it was Rs 18.912 billion during the previous Oiscal year. The MCC will collect federal excise duty (FED) with a target of Rs 225.61 million while the customs collected Rs 206 million during the previous Oiscal year. Sources said that MCC have to collect Rs 236.71 million as withholding tax for Oiscal year 2015-16 while it collected Rs 210 million during last Oiscal year.

The Collector Ahmad Reza Khan said that serious effort would be made to achieve the target of Oiscal year 2015-16. He said that the Customs Department would try to achieve the said target. He said that the FBR already has appreciated the performance of MCC Sialkot.

Collector Ahmed Reza said that that customs collectorate will use all available resources to meet the revenue collection target of current Fiscal Year 2016-17. He said that the Collecotrate is already adopted a comprehensive strategy to meet the revenue target of Fiscal Year 2016-17. Collector Raza said that due to these measures he is optimistic that they will achieve

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Tuesday, December 27, 2016

revenue collection target. is much better by MCC Sialkot during Oirst Meanwhile, The Customs Collectorate has four months of current Oiscal year. Sources collected Rs8469.31 millions in terms of told that the staff is doing work to achieve customs import, rebate and export duty target and the staff will target rather surduring the month of November 2016. pass against assigned by the FBR before Sources told Customs Today that the MCC the ending of current Oiscal year 2016-17.

Sialkot has surpassed the revenue collec- Sources told that the export and import tion target under the head of customs duty from Sialkot Dry Port Trust (SDPT) under as compared with the collection of corre- MCC Sialkot is increasing day by day and it sponding period amounting to Rs 7.533.02 will much better. Sources told that the million. Sources said that the Sialkot re- MCC Sialkot making good name in collecgion had collected Rs 27.65 million as cus- tion of revenue and achieving target. toms import duty during November 2016 Sources told that the Collector Customs which is Rs 3.31 million more than collec- Ahmed Reza Khan and other ofOicers and tion of the same period of last year, 2015. taking full interest to achieve target Sources said that the MCC Sialkot colwhereas fruitful results are observing. lected Rs.8293.1 million as export duty whereas the Collectorate issued cheques of rebate amounting to Rs.18.56 million to exporters. Sources said that department was striving hard to achieve revenue collection target under all heads for the running Oiscal year 2016-17.

Sources also denied the imrget pression that customs ofOicials nue ta e v e r received customs duty in advance 22.1 s tax be Rs from importers in order to meet s sale l l m i o w t s the targets. illion l year The cu 912 b . t fisca 8 n 1 e Sources told the Federal Board r s CC r R for cu . The M it was r 0f Revenue (FBR) has to revise a e l e i y h w scal D) the revenue collection targets billion ious fi ty (FE v u e d r p e s sometimes keeping in view hile exci g the deral the unfavorable circumlion w durin l e i f t m c 1 e ll stances, adding that tax col225.6 llion will co of Rs 06 mi t 2 e lection was increasing every s g R r ta ed r year due to effective policies of with a oms collect al yea c s fi t s s the department. Sources told iou the cu e prev that the collection of said revenue ing th

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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

Chinese share in Pakistan economy

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ccording to news reports, the Chinese investors will be oered land and facility to set up high tech industries along the China-Pakistan Economic Corridor, which would not have any negative impact whatsoever on the local industrial base. However, the actual news is that China is heading towards heavy industry from small industry and is shifting its small industrial units to Bangladesh as part of its $20 billion investment in that country. This is what Japan did in 80s when it shifted its small industry to Malaysia and Pakistan had failed to accept the Japanese generosity. The same is now going to happen in close economic relations between China and Bangladesh as the latter is already progressing with leaps and bounds, leaving Pakistan far behind in the export sector. There is no stir in the government circles over the development of Chinese Bangladeshi relations. Apart from others, three main factors are strongly attached with the economic corridor. The first is a regional integration, allowing China to get a shortcut to export its goods to the rest of the world. The second is a package of power generation and the third is establishment of industrial zones along the corridor. Due to its strategic location, the corridor is an opportunities for the countries in the region to enhance their connectivity. Chinese are very cautiously moving to invest in Pakistan to avoid any conflict with local industrialists. The government is so far reluctant to establish a joint forum of the Pakistani and Chinese businessmen to workout a plan to set up industries in the industrial and export processing zones along the corridor. Otherwise, there is a need to strengthen cooperation between National Development and Reforms Commission of China and Planning Commission of Pakistan. The government should also invite investors, other than Chinese, to avail opportunities on the economic corridor. Vietnam is situated below the Chinese economy, but has embarked on ambitious plan to develop its economy on modern lines.

Pakistan can also follow the Vietnam model if it does not want to follow Malaysian economic module. At least 36 economic zones are planned to be established along the economic corridor which would not only attract foreign investment, but will also expand the job market in Pakistan and will give impetus to progress and prosperity in the region.

Problems of trade with Iran I

LAHORE

DR AFTAB AFZAL

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t is been two years since sanctions are phasing out on Iran which were the biggest hurdle in promotion of trade between Islamabad and Tehran.

However, the government is unprepared as usual to avail business and investment opportunities offered by Iran where the European and other developed nations are thronged to take their shares of participation. The unfortunate part of the whole scheme of things is that Pakistan has failed to establish bank to bank links with this important country in the neighbourhood with which we enjoy not only cul-

ture and religious relations, but also trade ties over the course of centuries. Over two years have been wasted away and no direct means of transfer of money could be established between the two countries. There is no one in the government to hold the officials concerned responsible for inactivity and lethargy lingering on the important matters from days to weeks and weeks to months.

How a nation can harbor high ambitions when it is unable to resolve a simple issue or evolve a fair strategy to boost its trade and business.

The Pakistan envoy in Tehran, Asif Khan Durrani, has right expressed the need for steps to enhance bank to bank connectivity between Pakistan and Iran to

fully exploit the opportunities after sanctions are waning on that country. According to him, a process of negotiations is going on between the officials of the two countries and a positive outcome is expected within a month.

Iran is Pakistan’s important ally in a hostile environment where east and west sides of the country are facing troubles and dishonesty from two neighbouring countries. All the efforts made by Pakistan to establish friendly relations with Afghanistan and India have so far been backfired.

Only Iran remained steadfast in good relations with Pakistan despite cold shoulder attitude from Islamabad. This is the only country we don’t have any issue other than some border problems and

too due to smugglers and terrorists who are operating on both sides of the borders. The two countries could not fully exploited the economic and trade potentials. Iran as an oil-rich country andhas surplus energy but is facing food shortage. Pakistan faces severe energy crisis but can cater to the needs of Iran.

Both the countries can help each other in various areas of business, trade and energy.

The absence of banking channels has come as a major obstacle in the promotion of trade between the two countries. It is hoped that the government will soon be able to establish links with Iran which is not difficult in this age of science, technology and information.

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Iran’s saffron exports up by 42% TEHRAN: An official said the volume of Iran’s saffron exports has risen by 42 per cent in the current Iranian calendar year (began March 21) as compared with a year before.

Deputy Head of Iran’s Union of Sellers and Exporters of Saffron Gholamreza Miri said the harvest season for saffron was over asserting “harvest of saffron in Iran continues as long as December 05 and precise statistics on output levels will be announced by stakeholders.” The official deemed market conditions as satisfactory highlighting that prices had reached stability. Miri maintained that the agriculture product is bought from farmers at a minimum of 1423 dollars and a maximum of 1,856 dollars per kilograms.

On exports of the Iranian product, Miri said in the first half of the current year saffron exports were heightened both in value and worth.

Pakistan Italy to further strengthen trade relations FAISALABAD

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he reciprocal visit of high level Italian trade mission immediately after the visit of FCCI trade delegation is a positive step to give a quantum jump to our bilateral trade, said Engineer Muhammad Saeed Sheikh President FCCI. He was addressing a function in which president FCCI inked a memorandum of understanding (MoU) with Foreign Trade Association of Italy (AICE). The Italian delegation was headed by Mr. Ivan Scalfarotto Deputy Minister of Economic Development. This function was organized by Punjab Board of Investment and Trade (PBIT) which was

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also attended by ambassador of Italy in Pakistan in addition to the representative of sixty leading companies from Italy. Provincial Finance Minister Dr. Ayesha Ghouse Baksh, Chairmen FEDMIC Mian Muhammad Adress, provincial Minister for industries Sheikh Allaudin and president LCCI Mr. Abdul Basit were also present during this meeting which was followed by B2B meetings with the entrepreneurs for the two countries.

President FCCI said that Italy is third major partner of Pakistan in European Union (EU) which will become second major trade partner after Brexit. He told that bilateral trade between Pakistan and Italy was 1.06 billion dollar during last year that has recorded a decline of 14% during this year. He further told that Pakistani share in Italian import is only 0.2% while Italian share in Pakistan is 1%.

Tuesday December 27, 2016

Chambers

Colombia keen to enhance trade ties with Pakistan: Envoy A

ISLAMABAD

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mbassador-designate of Colombia to Pakistan Juan Alfredo Pinto Saavedra Thursday said Colombia was interested to enhance trade relations with Pakistan and the best way to achieve this goal was to develop business linkages between the private sectors of both countries.

Juan Alfredo said this while exchanging views with business community here at Islamabad Chamber of Commerce and Industry (ICCI), a statement issued here said. He said bilateral trade between Pakistan and Colombia was nominal and its main reason was lack of information on both sides about potential areas of mutual cooperation. Envoy said chamber of commerce and industry of both countries should sign memorandum of understanding (MoU) to enhance B2B linkages that would help in exploring possibilities of enhancing bilateral cooperation in trade and economic Oields.

He offered his cooperation to facilitate signing of the MoU between trade bodies of both countries. He

said as a Oirst step, both countries should identify top 20 products for bilateral trade and then gradually expand the range of products to enhance two-way trade volume. He said Colombia enjoyed a strategic location in North America and had signed 94 Free Tread Agreements (FTAs) with regional countries, thus enhancing close cooperation with it would help Pakistan in getting bet-

ter market access to North American region. Speaking on the occasion, ICCI President Khalid Iqbal Malik said the best option for Pakistan and Colombia to enhance bilateral trade was to encourage the frequent exchange of trade delegations to explore all areas of potential cooperation. He said both countries should focus on organizing single country exhibitions and participate in each

LCCI suggests launching of shares of Bhasha & Kalabagh dams in stock markets

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LAHORE

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he Lahore Chamber of Commerce & Industry (LCCI) suggested the Ministry of Finance to launch shares of Diamir Bhasha and Kalabagh dams in the domestic and international stock markets to generate huge funds for this mega project. According to a statement issued here the LCCI president Abdul Basit and vice president Muhammad Nasir Hameed Khan said that country needs over $ 30 billion for the construction of Diamir Bhasha and Kalabagh dams dam and to make them operational for power generation. International donor agencies and Oinancial institutions are giving different excuses and are reluctant to fund

therefore government would have to generate funds from it own resources.

Elaborating the point, the LCCI ofOicebearers said that around $ 14 billions would be required for only construction of Diamir Bhasha dam while other expenses of $ billions would also be occurred besides the cost.

They said, around 150 KM area of Karakrum High way would have to be reconstructed with the cost of $ 6 to 7 billion. Around $ 3 billions more would be required for transmission line from Diamir Bhasha to national grid. They said that collectively more than $ 20 billions would be required for construction of Bhasha dam.

“Basha and Kalabagh dams will collectively produce 8000 MW of electricity through environmentally clean hydro-power generation, will store 15 million acre feet of water that

would be used for irrigation and drinking and would control Olood damage by the River Indus downstream during high Oloods and extend the life of Terbela dam located downstream by 35 years. Both the dams would also reduce dependence on environmentally damaging thermal power, thus saving enenvironment and foreign exchange”, the LCCI ofOice-bearers added. They said that through launching of shares of Diamir Bhasha and Kalabagh dams in the domestic international stock markets, government could earn billions of dollars as these are one of the most attractive projects for the investors.

They said that Diamir Bhasha dam would give beneOits of billions of dollars to the national economy and investors are always interested in the proOitable projects.

other’s trade fairs, which would help in promoting trade relations. Khalid Malik said Colombia was producing more than 66 percent of its energy through hydropower and it should share its technology and expertise with Pakistan in this Oield. He said Colombia was major exporter of oil, coal, coffee, Olowers and both countries had the potential to cooperate in many areas including agriculture.

Business community urged to invest in forestry sector orests are the backbone of sustainable economic growth of Pakistan and business community should invest in forestry sector in Punjab to achieve lucrative returns, observed Tahir Rasheed, Chief Executive Officer of South Punjab Forest Company (SPFC).

Addressing a seminar on “Investment Opportunities in Forestry Sector in South Punjab” at Islamabad Chamber of Commerce and Industry (ICCI), Tahir Rasheed said that as per FAO 2015 report just 1.9% of the total area of Pakistan was covered with forests while the country witnessed average deforestation rate of 2.1% from 1990 – 2015, which was alarming. The seminar was organized by Islamabad Chamber of Commerce and Industry.

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LHC issues notices in petition against tax recovery thru bank account Tuesday December 27, 2016

National Trade balance with EU remains in favour of Pakistan ISLAMABAD

M ARSHAD

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espite overall trade deficit, trade balance with European Union has been in favour of Pakistan for the last two years. Main component of exports to EU states and other countries is textile products. This has been a result of vigorous pursuance of policy of focusing on search of new markets in Europe.

Sources at the Ministry of Commerce told Customs Today that the total value of Pakistani textile products exported to EU member countries stood at $5,126.87 million and $5,226.46 million for the financial years 2014-15 and 2015-16, respectively. The total value of textile products imported from EU member states stood at $2,561.7 million and $3,146.7 million for financial years 201415 and 2015-16 respectively. UK and Germany were the first and second largest export destinations for Pakistani textile products. The source said that comparison showed slight increase in the exports to EU in respective years whereas there is huge increase in the value of imports from these countries.

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DG Valuations revises customs values of children toys he Directorate General of Customs Valuation has revised the customs value of children toys through Valuation Ruling No 991/2016 under Section 25A of the Customs Act, 1969.

Customs values of Children Toys were earlier determined vide Valuation Ruling 871/2016 dated 20-06-2016. Review Petitions were filed under section 25D of the Customs Act, 1969, before the Director General od Customs Valuation, Karachi by M/s N,T Computers and others, which were disposed of vide Order.in. Revision No.236/2016 DG(V).EV./839/2016/9300, dated 1808-2016. The Director General had order to conduct fresh inquiries and to the issue Valuation Ruling for Toys and Games separately.—Waqar Ansari

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LAHORE: The High Court has issued notices to President of Pakistan, Special Assistant to Prime Minister on Revenue Haroon Akhtar, FBR and Punjab government, and sought parawise comments on January 17 in a petition filed by a government official.

The employee of provincial government filed a petition challenging the illegal recovery of money through bank account.

The president has accepted the representation filed by the FBR under section 32 of the Federal Tax Ombudsman Ordinance, 2000 against an order passed by Federal Tax Ombudsman (FTO).

Deputy Collector Asma issues ONO in favour of ASO Sara-e-Muhajir T

FAISALABAD

NAEEM SHEIKH

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he Deputy Collector Customs Adjudication Asma Hameed has issued Order-in-Original (ONO) in favour of Anti-Smuggling Organization Sara-e-Muhajir. According to details, a team of the Anti-Smuggling Organization (ASO) intercepted a Toyota Corolla car bearing registration no. A5818 (Peshawar) near Chashma Barrage Chowk Sara-e-Muhajir.

The smuggled vehicle was brought into country without payment of customs duty and taxes through unauthorized way. The Customs team arrested the driver of the vehicle who was identified as Ghazanfar Ali Khan son of Hameed ullah Khan who is a resident of D.I khan. The Customs official asked

the driver to produce documents regarding import of vehicle. But

he failed to produced the lawful proof it impartation even registra-

tion book. The particular of the vehicle were checked on the website and found not tallied. The incharge of PRAL customs dry port Faisalabad has informed that the vehicle having chassis number No, NZE 121-3229978 was not imported in the country. Seizure report along with enclosures is being submitted to adjudication authority for adjudication.

During the proceedings, Inspector Muhammad Umar Bhatti was appeared from the petitioner side and no one was appeared from the respondent side.

The case decided on the basis of the facts and material available.

After hearing the case deputy Collector Asma Hameed issued ONO in favor of ASO Sara-e-Muhajir under section 156(1)89 of the Customs Act 1969.

Customs to install on cameras at JIAP P

KARACHI

MUBEEN HUSSAIN

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akistan Customs has decided to install close circuits cameras at Jinnah International Airport to keep an eye on the suspects. Customs sources told Customs Today that Pakistan Customs has started implementation on the plane to install CCTV cameras at the arrival and departure of the Jinnah International Airport (JIAP) to widen the security blanket against the smugglers. Source said that cameras are installed at the Karachi Jinnah Airport but some areas are security threat and a save passage for culprits where the places are naked and are out of the reach of the cameras. After the rejection of the civil aviation authority the customs authorities are now going to install camera where they want surveillance must beefed up to avoid any chance of smuggling. The command and control system of the CCTV cameras being installed at the airport will be under the supervision of the Customs ofOicers, added

the source. On the other hand the Customs has also risen the checking and scrutiny of the different Olights especially Dubai bond Olights due to the recent incident drugs recovered

from the PIA Olight recovering, the source informed. On the higher authorities Customs is pursuing a widely campaign against smugglers as well as smuggling out of foreign

currency and inbound smuggling of gold. Additional staff have also been deployed at the airports across the country to check and scan passengers, said the source.

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Customs Appellate Tribunal adjourns hearing of case filed by M/s Warid Telecom ISLAMABAD: The Customs Appellate Tribunal adjourned the hearing of a customs reference involving M/s Warid Telecom (Private) Limited on Friday. A division bench of the Customs Appellate Tribunal comprising members, Syed Muhammad Anwar and Muhammad Nasir Khan, heard the case. The bench had adjourned the hearing after respondent’s counsel sought time to furbish details of the case. M/s Warid Telecom had filed the case against Model Coollectorate of Customs, Islamabad in 2016. Through the petition, the company had challenged a decision announced by the adjudication for sustaining claims of recoverable customs duty of around Rs 40 million. The tribunal had held the hearing of the matter during last week and had adjourned it for further arguments.

Customs Appellate Tribunal hears various references in 2nd week of Dec ISLAMABAD

NAEEM ULLAH TARIQ www.customsbulletin.com

he Customs Appellate Tribunal heard a number of customs references during second week of December and adjourned the cases for upcoming dates. A single bench of the tribunal comprising Syed Muhammad Anwar heard the cases filed by M/s Lucky Enterprises, Haq Nawaz and Wasif Hussain. All of these cases had been filed during 2016. The bench adjourned the harings following absence of the responding counsels from the tribunal. M/s Lucky Enterprises had challenged customs duty assessment

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sustained by the adjudication. Haq Nawaz and Wasif Hussain had filed cases for the release of vehicles which were seized by the customs authorities during various actions. The department has not yet filed any objection against the cases. Following the absence of counsels, the bench adjourned hearing for the next week.

Meanwhile, the same bench also adjourned the hearing of M/s Warid Telecom (Private) Limited’s case after respondent’s counsel sought time to furbish details of the case. Through the petition, the company had challenged a decision announced by the adjudication for sustaining claims of recoverable customs duty of around Rs 40 million. The tribunal had held the hearing last week and told the counsels to ensure their presence on the next hearing. The tribunal had issued the directives through assisting counsels who had appeared instead of the main counsels.

Tuesday December 27, 2016

National

Dr Fareed Qureshi assigns Rs 29,896m target to deputy, assistant collectors for Dec T

DG I&I impounds non-duty paid Honda car from Rawalpindi ISLAMABAD

M FAIZAN

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KARACHI

AFTAB CHANNA

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r Fareed Iqbal Qureshi, the collector customs collectorate Appraisement West, has assigned Rs 29,896 million revenue target to all deputy collectors and assistant collectors for December 2016, it is learnt. OfOicial sources told Customs Today that all the assistant and deputy collectors have been directed to make extra efforts for the achievement of the groupwise revenue target for December 2016. According to break up of the revenue target, Group-I has been tasked with revenue collection target of Rs 2,406 million, including Rs 1,018 million customs duty, Rs 758 million sales tax, Rs 525 million withholding tax and Rs 105 million federal excise duty. Group-II will collect Rs 2,890 million, including Rs 935 million customs duty, Rs 1,364 million sales tax and Rs 590 withholding tax. Group-III will collect Rs 4,374 million, including Rs 1,623 million customs duty, Rs 2,118 million sales tax and Rs 633 withholding tax. Group-IV will col-

lect Rs 4,588 million, including Rs 2,524 million customs duty, Rs 1,492 million sales tax and Rs 573 withholding tax. Group-V will collect Rs 2,857 million including Rs 1,009 million customs Duty, Rs

3,218 million sales tax and Rs 1,339 withholding tax. Group-VI will collect Rs 6,721 million, including Rs 2,164 million customs duty, Rs 3,218 million sales tax and Rs 1,339 withholding Tax.

he anti-smuggling staff of the Directorate of Intelligence and Investigation, Rawalpindi, has converted the detention of a Honda Vti car into seizure. Sources told Customs Today that as per verification data a Honda Saloon engine no. D15Y31028553 stands registered against registration no. AJC 916 and nobody appeared in this office nor produced any legal documents in respect of the detained vehicle. Therefore, detention of Honda Civic car bearing fake registration no. AJC 916 and engine no. D1675001828 has been converted into seizure under section 168 of the Customs Act 1969 for being smuggled one in violation of sections 2(s) and 16 of the Customs Act, 1969 read with section 3(1) of Import and Exports (Control) Act ,1950. Notice under section 171 ibid is also pasted on the notice board and a copy is being sent to incharge of Police Station Chaklala Scheme III Rawalpindi.

It is pertinent to mention here that the anti-smuggling staff of the Customs I&I had detained the vehicle a couple of days ago, which was parked at Chaklala Scheme III Rawalpindi.—CB Report

Sialkot Customs earns Rs 3253.2m by LCL consignments

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SIALKOT

SALEEM AWAN SHEIKHU www.customsbulletin.com

he Deputy Collector Model Customs Collectorate Waheed Anwar Abro has said that the Less Container Load (LCL) consignments of sports goods, surgical and musical instruments, leather garments and gloves exported through Sialkot International Airport Limited (SIAL) to other countries by cargo Olights twice in a week. He said that Custom Preventive staff deputed at airport deeply checked all consignments.

While talking to Customs Today Abro said that the 15 to 20 LCL con-

signments exported through cargo Olights in a week. He said that MCC Sialkot earned Rs3253.2 million

during the months of October and November from LCL consignments.

He said that MCC also earned

Rs2.350 million from other luggage checking during said period.

He said that the performance of Customs Preventive staff is much better at Sialkot International Airport Limited (SIAL). He said that the present government and Federal Board of Revenue (FBR) have instructed the customs department to take measure to increase LCL cargo by air to strengthen the economy of country whereas all other departments including Federal Investigation Agency (FIA), Airport Security Force (ASF), Civil Aviation Authority and others to cooperate with the customs ofOicials to curb smuggling of contraband items and increasing of LCL cargo by air.

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Korea’s exports up 12% in first 20 days of Dec Tuesday December 27, 2016

World

SEOUL: South Korea’s exports rose 11.6 percent in the first 20 days of this month from a year earlier, raising hopes that the country may post positive growth for two straight months for the first time in more than two years, latest customs data showed Wednesday. The country’s exports totaled $27.1 billion from Dec. 1-20, up from $24.2 billion tallied over the same period last year, according to the Korea Customs Service.

Outbound shipments of semiconductors soared 19.5 percent on-year and those of passenger cars gained 8.6 percent over the cited period. However, exports of wireless devices fell 2.3 percent in the aftermath of Samsung Electronics Co.’s production halt of the Galaxy Note 7, while shipments of auto parts declined 7 percent. The data showed that imports also rose 9.4 percent on-year to $24.4 billion.

Customs seizes P700M in smuggled fuel from 2 tankers

MANILA

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he Bureau of Customs seized P700 million in smuggled fuel from two tankers in Limay port, Bataan province, the Department of Finance said Wednes-

US products exports to Mexico to rise S products exports to Mexico are set to continue to climb in the coming year as Mexican production dwindles further and liberalization of the country’s market continues. Refined products exports from the US to Mexico soared for much of 2016, mirroring a large drop in crude processing rates at Mexican refineries. From April to September this year US gasoline and diesel exports to Mexico rose by 43.8pc and 26.3pc, respectively, to 55.2mn bl and 33.4mn bl, according to data from the Energy Information Administration (EIA). Gasoline components flow from the US to Mexico also rose by 26.4pc to 15.77mn bl between April and September, while jet fuel movements grew by 57.2pc to 6.1mn bl, according to the EIA. Increased demand for US products stems from falling domestic production in Mexico.—CB Report

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day. The M/T Alpine Magnolia and M/T Malolos were intercepted following a tip from an informant, the department said in a statement.

The vessels, worth an estimated P300 million, were also seized, said deputy commissioner Edward James Dy Buco. The two vessels discharged fuel on Dec. 15 without paying proper taxes, Buco said. Mean-

while, The Bureau of Customs (BoC) is hiring new employees to Oill more than a 1,000 positions next year to augment reforms in the agency, its spokesperson said Tuesday. The hiring will begin in the Oirst quarter of 2017 “to Oill up positions that were left vacant for years, as a result of rationalization policies and freeze on hiring of the past administrations,” said Neil Anthony Estrella, acting spokesperson for enforcement and intelligence operations at Customs. “An estimated 2,500 interested applicants submitted their application for more than 1,000 vacant positions posted by the Bureau last month. This includes opening for both new hire and employees up to for promotion. The Bureau of Customs employees who passed their applications and are qualiOied for higher promotions, are all up for promotion this month,” Estrella said. He added that newly recruited or promoted employees “are expected to overhaul the tainted image of the agency.”

Russia’s ESPO Blend crude oil exports seen falling in Feb

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ussia plans to cut ESPO Blend crude oil exports from the PaciOic port of Kozmino in February by approximately 450,000 tonnes to 2.25 million tonnes, market sources told Reuters on Wednesday. Loadings will be lower due to planned maintenance of the ESPO pipeline which may start in February and continue in March, traders said. ESPO Blend preliminary loading plan from Kozmino is expected to be released by the end

of the week Russia’s oil pipeline Transneft doesn’t comment on its maintenance plans. Rosneft is expected to load 900,000 tonnes including 200,000 tonnes under term agreement with China’s CNPC from Kozmino in February, Surgutneftegaz will load 600.000 tonnes of ESPO Blend, small producers – 500.000 tonnes, while Gazprom Neft and Lukoil will export 100.000 and 140.000 tonnes respectively, traders said.—CB Report

Chinese men charged with drug smuggling BEIJING

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en Chinese nationals were charged on Tuesday with drug smuggling in Australia after ofOicials said they found a stash of cocaine worth more than 60 million Australian dollars ($44 million) on their ship. Last week, the Australian Defense Force intercepted the 50-meter (160-foot) former research vessel off the island state of Tasmania, and escorted the boat to the state capital, Hobart.

During a subsequent search, police found 186 kilograms (410 pounds) of cocaine on board, the Department of Immigration and Border Protection said in a statement.

The 10 crew members, all men aged between 23 and 50, were charged with attempting to import a commercial quantity of a border controlled drug. If convicted, they

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could face a maximum penalty of life in prison. Meanwhile China’s biggest grain-producing province has passed a five-year ban on growing, processing and selling genetically modified crops, in an apparent blow to central government efforts to turn the country into a world beating GMO power. Despite spending billions of dollars on biotech food research, Beijing does not currently permit the cultivation of any GMO crops except for cotton and papaya, amid fierce suspicion from consumers over perceived health risks. The ban announced by China’s northeastern Heilongjiang province comes into effect in May and applies to rice, corn and soybeans. “The black soil of Heilongjiang and its biodiversity needs special protection,” the state-run China News Service cited provincial officials as saying. The move comes after Beijing in August published plans to develop specific GMO crops including soybeans and corn for the first time.

SACU tops Botswana imports outh Africa was the main source within the Union with a contribution of 64.2%, which is equivalent to P4 billion followed

by Namibia with 13.3%, which was P817.4 million contributions to total imports during October 2016.

According to the report, the major commodities imported from South Africa were non-industrial diamonds unworked or simply sawn cleaved or bruited, petrol and distillate fuel with contributions of 15% or P590.7 million, 6.8% or P270.1 million and 5.7% or P224 million respectively of total imports from that country. “The other

major source of imports during October 2016 was Asia, having supplied imports valued at P508.6 million representing 8.3% of total imports during the month. India, China and Korea were the most contributors to imports sourced from Asia, with P133.6 million, 1.5% which is P89.5 million and 1.4% which is P88.8 million respectively of total imports during the month under review,” read the report. The European Union supplied imports valued at P351.9 million, accounting for 5.7% of total imports during the month under review. —CB Report

Google lowers 2015 taxes by $3.6b using ‘Dutch Sandwich

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AMTERDAM

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lphabet Inc.’s Google saved $3.6 billion in worldwide taxes in 2015 by moving 14.9 billion euros ($15.5 billion) to a Bermuda shell company, new regulatory Oilings in the Netherlands reveal.

The amount the company shifted

through its Dutch subsidiary, Google Netherlands Holdings BV, and then on to a Bermuda mailbox was 40 percent greater than in 2014, according to Oilings the company made with the Dutch Chamber of Commerce on Dec. 12 and which were made available online Tuesday.

News of the Oilings was Oirst reported by the Dutch newspaper Het Financieele Dagblad. Alphabet

moves the bulk of its non-U.S. profits through this Dutch subsidiary, which has no employees. The company has used the Netherlands company since 2004 as part of a tax structure dubbed a “Double Irish” and a “Dutch sandwich.” By moving most of its international proOits to Bermuda, the company was able to reduce its effective tax rate outside the U.S. to 6.4 percent in 2015, ac-

cording to Alphabet’s Oilings with the U.S. Securities and Exchange Commission. “Google complies with the tax laws in every country where we operate,” a Google spokesman said in a statement. In February, Google also said such calculations of an effective tax rate do not reOlect the methods actually used to determine its international taxes in any jurisdiction.

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NAB arrests four accused involved in land scam & fraud LAHORE: The National Accountability Bureau (NAB) Lahore has arrested four accused persons who are involved in fraud with common citizens.

Sources of Customs Today told NAB Lahore arrests four people who were identified as Muhammad Nadeem, Mubarik Ali, Waseem Aftab Abbasi and Amir Iqbal involved in illegal sale of properties. They claimed to be authorised to dispose off various properties confiscated by Accountability Court.

Sources said that accused persons received advance money from various persons for prospective deals. Accused were produced before the accountability court where court approved their physical remand till 02 January 2017.

Mianwali ASO impounds non duty paid Toyota Hilux Surf

Tuesday December 27, 2016

National

Customs collects Rs236.46m during first 15 days of Dec

Central Region collects Rs 52.79b in five months of FY 2016-17 LAHORE

FAISALABAD

NAEEM SHEIKH

M HAYAT

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he Customs Anti-Smuggling Organization (ASO) Mianwali, which falls in the jurisdiction of Faisalabad Customs, has impounded a non-duty paid vehicle, Toyota Hilux Surf worth Rs 19,16,109 involving duty and taxes amounting to Rs 13,16,109. Sources told Customs Today Deputy Collector Rizwan Khan constituted a team to curb non duty paid vehicles plying onroads. An ASO team intercepted a Toyota Hilux Surf SSR-G V-6 vehicle bearing registration no. LEC-11-3777 near Musa Khail Rawalpindi Road district Mianwali. The officials asked the driver namely Jehanzeb Khan son Alamgir Khan resident of Androon Railway Gate Bannu to produce the documents showing the legal possession of the vehicle. But he could not show any documents on which the customs officials took the vehicle into custody under Section 156 (I) of the Customs Act 1969 and served notice upon the accused person.

he Customs Central Region has collected Rs 52,790 million under the head of duty and taxes during (July-November) of the finical year 2016-17. The Customs Appraisement collected Rs 25,300 million during five months of the financial year 2016-17 against the collection of Rs 26,623 million during the same period of the last year. The Collectorte of Customs Preventive collected Rs 11,235 million during the period under review against Rs 12,231 million during the same period of the last financial year.

On the other hand, the Collectorate of Customs Multan collected Rs 11,922 million during the period under review against Rs 20,296 million it collected the last financial year. The Collectorate of Faisalabad collected Rs 4,330 million during the first quarter of the financial year 2016-17 against Rs 3,122 million during the first quarter of the financial year 2015-16.

On the whole the collectorate collected Rs 52,790 million during the period under review Source told Customs Today that Chief Collector of Customs Central Region Samaira Nazir has directed all the collectors under her supervision to speed up collection of the duty and taxes to achieve the financial year’s targets.

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LHC issues notices in petition against tax recovery thru bank account he High Court has issued notices to President of Pakistan, Special Assistant to Prime Minister on Revenue Haroon Akhtar, FBR and Punjab government, and sought para-wise comments on January 17 in a petition filed by a government official. The employee of provincial government filed a petition challenging the illegal recovery of money through bank account. The president has accepted the representation filed by the FBR under section 32 of the Federal Tax Ombudsman Ordinance, 2000 against an order passed by Federal Tax Ombudsman (FTO).—CB Report

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ISLAMABAD

TARIQ DERYA

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odel Customs Collectorate Islamabad collected Rs236.46 million during Oist 15 days (1st to 15th) of December of Oinancial year under head of customs duty.

According to details told by Collector Dr. Arslan Subactageen that the Collectorate surpassed the assigned target for Oirst 15 days with

achievement of 117% adding that MCC was assigned target of Rs210 million for Oirst 15 days under head of, while the MCC collected Rs158.11 million during same period in Oinancial year 2015-16 under head of Customs duty.

He said that Collectorate collected revenue of Rs.293.52 million under head of sales tax against the assigned target of Rs.191.03 million for first 15 day of current month adding that the Collectorate was assigned target for same period during last financial year

2015-16 amounting Rs.193.95 million under head of ST. He said that MCC have surpassed its all duty taxes target amounting Rs.656.98 million against the assigned target of all duty taxes amounting Rs.563.16 million adding that MCC was collected revenue during same period of Oinancial year 2015-16 amounting Rs.455.99 millions under head of all duty taxes.

Collector Arsalan said that Model Customs Collectorate is using all avaiable resources to recover outstanding amount from defaulters.

Customs I&I, chief collector start separate probs at PQA

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KARACHI

MUBEEN HUSSAIN

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irectorate General of Customs Intelligence and Investigation (I&I) has appreciated the efforts of the ofOicers on mega seizure at the Port Muhammad Bin Qasim in which four containers were detained last Wednesday, saving millions of rupees duty and taxes.

According to source, investigations against the heinous crime of mis-declaration has been deepened

to arrest the mastermind of the case.

On the other hand, the three ofOicials involved in the case have taken bails from the court. The sources informed Customs Today that the Directorate General of Customs Intelligence and Investigation (I&I) was receiving complain regarding misdeclaration and the non-duty paid items being imported through green channel. Acting upon the complains, the ofOicers of the Customs Intelligence and Investigation (I&I) started watching the consignments being cleared through green chan-

nel during which a consignment was directed to be hold, informed the source. The Customs ofOicer at the Port Muhammad Bin Qasim also declared the consignment on the hold after citing the action of Customs Intelligence and Investigation (I&I) ofOicers, the source also revealed.

The source further stated that before holding the consignment of the green channel the principal appraiser and appraiser of the Port Muhammad Bin Qasim informed the chief collector and the collector regarding the situation. Now the mat-

ter has become bone of contention between the ofOicers of the Customs Intelligence and Investigation (I&I) and the ofOicers of the Customs deployed at Port Muhammad Bin Qasim, sources said. The chief collector and the collector have asked the three customs ofOicers to continue their duties as per given task and the case will be handled by them, the source disclosed. Both the Customs Intelligence and Investigations (I&I) and the chief collector have started separate investigations into the case.

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FIA arrests four suspects involved in money laundering Tuesday December 27, 2016

Lahore

LAHORE: The Federal Investigation Agency (FIA) has arrested four suspects from Lahore who were involved in money laundering.

According to FIA spokesperson, a team consisting of Inspector Nasir Awan, Inspector Abdul Qayyum, ASI Badar Bashir, Muhammad Ishfaq, Shafqat Jabbar, Nadir Azad and Muhammad Marouf conducted a raid at M/s Abdullah Travels Bund Road where four persons who were identified as Khurram Butt, Tahir Ali, Tahir Mehmood, Muhammad Bilal were found involved in illegal business of money transfer without permission of the State Bank of Pakistan.

The FIA team recovered Rs 58.5 million, $206,350 and Saudi Riyal 100,000 from their possession.

Customs Appellate Tribunal remands back case against Rising Sun LAHORE

MUHAMMAD NAWAZ www.customsbulletin.com

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ustoms Appellate Tribunal has set aside case of additional director, Directorate of Intelligence and Investigation against M/s rising sun Constructions, Sohail Majeed Enterprises and others. Member Judicial of bench-II Omer Arshed Hakeem said in the Oinal remarks that both impugned orders are set aside and instant customs appeals remanded back to the adjudication ofOicer with direction to pass fresh speaking order after providing opportunities of hearing to both the parties and receiving evidences which they may likely to produce. In the précis facts of the case, M/s Rising Sun Construction Lahore imported one used Hino

Customs Court adjourns hearing of case filed against tyres smuggler he Special Federal Court of Customs Taxation and Anti-Smuggling has extended the date of hearing against an accused who was arrested from Lahore with a truck loaded with non-duty paid expensive tyres. Sources told Customs Today that the suspect was arrested when a team of customs intelligence intercepted a truck which was coming from Quetta near Thokar Niaz Baig. During searching of the truck, the officials found a huge quantity of smuggled tyres which were tactfully hidden and packed. Different brands of tyres were recovered from the truck, including costly tyres of Pajero, Mazada trucks and other vehicles. Sources said that the market value of the seized tyres is almost of Rs 5 million and that were being carried to Lahore for a businessman Matiur Rehman.—M Imran Mehar

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Transit Mixer truck model 1997 made in Japan and declared PCT heading 8705.4000. the staff if MCC appraisement Lahore examined the said vehicle and cleared it against the customs value of Rs 11, 70, 437 involving an amount of duty and taxes to the tune of Rs 7, 32, 500.

The directorate of intelligence and investigation Lahore received information that the said importer has imported one unit used Hino bus has not been fabricated and declared and concrete transit mixer truck. The said consignment was detained under the section 2 (kk) and 17 of customs act 1969. After the show case notice adjudication ofOicer heard the case and passed the order to release truck to the owner and said that there is no violation occurred from recipient side. Appellant Oiled the case before deputy collector of customs those passed the order against the appellant.

Automation will bring transparency in clearance process

LAHORE

M HAYAT

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hief Collector of Customs Central Samaira Nazir has said that automation system

Seminar held on tax relating to immovable properties

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he Corporate Regional Tax OfOice has organised a seminar on tax relating to immovable properties at the Income Tax ofOice the other day. The Zone-V of CRTO Lahore organised the detailed presentation on section 236W and its salient features besides a difference in between sections 236C & 236K of Income Tax Amendment Act, 2016. Income Tax Inland Revenue Commissioner Mehmood Jafri said that the withholding agent who fails to collect tax relating to transfer of immoveable

properties is personally liable to pay the amount of tax under section 236W and other provisions of Income Tax Amendment Act, 2016. In addition to the principal amount as above, he added, the default surcharge at12 percent per year is also chargeable under section 205. Penalty for non-Oiling of monthly withholding statement is t Rs 2500 for each day’s default under section 182, he added. He urged the participants to keep updated ATL, which would be updated 15th of each month.—CB Report

will ensure transparency in the customs clearance process.

She also said that the anti-smuggling scouts across the central region would be given tablets to strengthen vigilance system. The customs central region has introduced Customs Management Information System in collaboration with

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the Punjab Board of Information Technology. She said that android phone applications would play a pivotal role in improving the customs operations against smugglers besides effective monitoring of the customs staff by the senior customs ofOicials. Sources said that the customs top ofOicials have made it mandatory for the customs patrolling staff to send photographs of the seized items then and there to ensure transparency.

Sources said that initially the Customs Preventive has implemented the automated monitoring system to check smugglers and later the model would be implemented in other collectorates of the customs central region. Earlier, Collector of Customs ZulOiqar Younas told Customs Today that the Collectorate of Customs Appraisement has not only been working on the physical training of the customs ofOicials, but also imparting them training to operate weapons and other related tools.

Customs Court hears 7 cases he Special Court of Customs Taxation and Anti-Smuggling heard 11 important cases on Friday and adjourned until the next hearing. On Friday, a total of 11 cases of different types were scheduled for hearing, including indictment against the accused persons who are involved in mobile smuggling case. The cases, including tax evasion, customs, smuggling and narcotics, were scheduled for the day. A case of Faheem in mobile smuggling was also scheduled for the hearing in which court recorded statements of the parties and adjourned it for next week. The court also proceeded on statements and

witnesses on four different cases on the day. The cases of Lahore, Gujranwala, Sialkot and Jhelum were scheduled for the day. Meanwhie, The Customs Court on Wednesday adjourned hearing of 16 cases related to customs matters. During the hearing of most cases, the counsels for the accused requested the court to postpone the hearing of their respective cases for preparation of arguments on that the court adjourned the hearings for different dates. According to the cause list, three out of 16 cases were Oixed for formal hearing of accused namely shehzad, Abdullah and Tariq Fatmi and others.—M Imran Mehar

PCA detects Rs 1.6m duty, tax evasion by M/s Greenage itn’l

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LAHORE

M HAYAT

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ustoms Lahore Post Clarence Audit (PCA) has detected alleged tax evasion of Rs 1.68 million by M/s Greenage International Gulberg-III, Lahore, on account of inadmissible exemption of SRO 567 (I) 2006 and SRO 1007 (1)/

2005. The Directorate of Post Clearance Audit observed that certain importers, having manufacturing of pesticides and other agro chemicals as their principal activity, are involved in duty and tax evasion during customs clearance of zinc sulphate (33 percent) which is classiOied under PCT heading 2833, 2940 by availing irregular exemption of customs duty under S.No. 4 of

SRO567 (1)/2006 and exemption of sales tax S.No. 5 of table-II of SRO 1007 (I) 2005. The PCA observed that the said SROs were meant for poultry ingredients only. It was observed that M/s Greenage International, Lahore, imported a consignment of the aforesaid impugned goods which were prima facie were fertilizers and as such not entitled for the exemption of customs duty

and sales tax under the said SROs during calendar year 2014. The PCA said that the mis-declaration resulted in the duty and taxes evasion to the tune of Rs 1.68 million and added that it is directed that the short paid amount of duty and taxes should be deposited in the government exchequer. The directorate said that in case of disagreement with the audit observations, the company.

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Port of San Diego approves controversial marine terminal expansion WASHINGTON: The Port of San Diego commissioners voted unanimously to remove two huge warehouses that crowd the 10th Avenue Terminal’s shipping berths. Removing those buildings allows the cargo facility to significantly boost business. But intitial plans for the renovation raised concerns of nearby residents who worried increasing cargo through the facility would increase pollution in Barrio Logan.

“The expansion plan called for an increase of 600 percent in cargo throughput as well as trucks, ships and all activity at the port. That’s almost 800 truck trips a day, more, so that was why it was a big concern,” said Diane Tekvorian, executive director of the Environmental Health Coalition.

European Parliament approves EU ports regulation espite objection from the UK port industry, the European Parliament has approved a new regulation on EU ports, with an aim to make them more efficient and attractive to investors, and make the fees and funding that EU ports get from shipping lines and governments clearer. A large majority voted to approve the regulation: 546 voted in favour, 140 against and 22 abstained. This vote brings to an end the Port Package saga that started 15 years ago. German rapporteur Knut Fleckenstein said: “After 15 years of discussion about European ports policy, “we have finally found an agreement: existing port management models can be

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maintained and, for the first time, there is an emphasis on good working conditions, which are a major part of the competitiveness of ports and are non-negotiable for us”. He added that financial transparency is at the core of the agreement, which should facilitate the work of the commission on a “coherent state aid regime and trigger investments into ports”. The lack of clear rules on public funding of port infrastructure and charges for using it holds back investment in ports, said the EU Commission. The new rules aim to make EU ports more efficient and attractive to investors. These rules apply to more than 300 EU seaports in the trans-European transport network. They include a requirement for ports to show clearly in their accounting systems the public funds they have received and to improve transparency in the way port services and infrastructure charges are set.—CB Report

Ports & Shipping

Bremerton Port spends $240k for decontaminating building BREMERTON

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he Port of Bremerton spent about $240,000 decontaminating an industrial building polluted by chrome-plating businesses, staff reported at a Tuesday commission meeting. Port commissioners accepted final contracts with two companies hired to complete the cleanup of the Olympic View Industrial Park building. Three Kings Environmental of Battle Ground billed the port $49,000 for removing toxins from the floors, exterior and office spaces in the building. Rivers Edge Environmental of Maple Valley charged $95,000 to decontaminate the walls, ceiling and mezzanine.

Those costs were added to money the port already spent on testing, initial cleaning and waste disposal. With the Oinal tally for cleanup in hand, port attorneys can seek reimbursement from former tenants. “I feel we should aggressively pursue that,” Commissioner

Larry Stokes said Tuesday.

The cleanup left the Imperial Way shop vacant for the past year.

Port staff said space is was relisted this fall and has drawn interest from several potential tenants. Metalplating businesses operated in the building for nearly two decades.

Electro Forming Systems rented the space from 1998 to 2013, when it turned its lease over to Art’s Custom Chrome LLC. After Art’s Custom Chrome moved out in November 2015, the port hired a contractor to test for

contamination. Tests revealed arsenic, lead, cyanide, cadmium and other poisonous chemicals used in the metal-plating process had spread throughout the shop and seeped into soil below the building. A painstaking cleanup effort began last summer with environmental firms scouring floors, excavating soil and scrubbing chemical residue from walls and ceilings.

Work wrapped up in November and a state industrial hygienist approved the results, port CEO Jim Rothlin said.

Tuesday December 27, 2016

Port Melville expasion setback for environmentalists nvironmentalists have suffered a setback in their campaign to restrict development on the Tiwi Islands north of Darwin, after the federal government ruled that the $140 million expansion of Port Melville marine supply base does not require federal oversight after all. The decision means the project is likely to be completed without any environmental impact assessment because the Northern Territory government has already given its approval. Port Melville also did not need planning permission because it is on Aboriginal land. Green groups had challenged Canberra’s original decision that the works could go ahead without federal regulation if undertaken “in a particular manner”. The original plans included building 30 million litres of diesel storage and a 100-man workers’ camp in pristine threatenedspecies habitat, and making allowances for close to 500 ship visits per year excluding pilot boats. The base is intended to service the oil and gas industry.—CB Report

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SC ports saw record volume for November S

WASHINGTON

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outh Carolina ports saw a record November container volume last month, the S.C. Ports Authority announced Wednesday. Ports including the Inland Port in Greer and the Port of Charleston handled handled 175,217 20-foot equivalent units (TEUs) in November. That’s a 14 percent increase over November 2015 and nearly 12,000 more TEUs than the previous record of 163,121, set in 2005.

The S.C. Ports Authority also broke the November record for pier containers (boxes) handled, moving 99,041 boxes.Overall annual pier container volume is up 4 percent to date at South Carolina ports compared to 2015. “We are ahead of plan for the Oiscal year 2017 but expect a seasonally modest December through February as lines adjust to

slowing world trade and prepare for new alliance deployments,” said Jim Newsome, S.C. Ports Authority president, in a release. “The South Carolina Inland Port Greer continued to handle near-record volumes as we prepare to build a second inland port in Dillon County, S.C.” Meanwhile, The Port of Dampier delivered a total monthly throughput of 14.7Mt, in line with the previous year. Imports totalled 84,000 tonnes, a decrease of 23,000 tonnes or 22% from the previous year.

Meanwhile, “The port of Rotterdam authority intends to play a pioneering role and make the port an inspiring example for the global energy transition,” said Allard Castelein, CEO of the port of Rotterdam authority. The low-lying Netherlands has a target timeline of 30 years to make its economy and society carbon neutral. Home to one of the world’s largest petrochemi-

cal complexes, the Port of Rotterdam is currently responsible for 18 percent of the country’s total carbon dioxide emissions. The city of Rotterdam emits nearly 30 tonnes (33 tons) of carbon per person, about one-third higher than Shanghai and more than six times the global average. Meeting the requirements of the Paris Climate Accord would require a 90 percent reduction in emissions by 2050. “The port area has many companies that use fossil resources to make fuels and countless chemical products.

These companies emit a lot of CO2, but also have a lot of knowledge about energy, energy-intensive production processes, and CO2 reduction,” the port authority said in a statement. The port is actively looking for companies that want to set up operations that will contribute to a reduction in overall carbon emissions. “The largest investments will

generally have to be made by the companies themselves, but the port authority will offer support with attractive accommodation conditions, connecting infrastructure, support with permit applications, and Oinding Oinancing.” “When it comes to crucial investments to realize the energy transition, the port authority is also prepared to make its own risk-bearing investments or to participate in companies.” He had “absolutely no idea” what the Oinancial impact would be at this stage. It depended partly on how long State Highway 1 between Ward and Christchurch would be closed. There was no reason why Marlborough’s log trade would be affected, he said. Nearly 660,000 tonnes of logs were exported through the port in the 2015/2016 Oinancial year.

According to the company’s annual report the port’s revenues lifted by 5.5 per cent to $25.85 million on the back of strong log exports.

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Sargodha ASO seizes 800 kg cumin seeds worth Rs700,000 FAISALABAD: The Customs Anti-Smuggling Organization (ASO), Sargodha has confiscated 800 kilogram cumin seeds worth Rs700,000 involving in customs duty Rs126,112. Sources told Customs Today that Deputy Collector Muhammad Rizwan received information regarding a smuggling bid. On this he formed a team included Superintendent Choudhary Muhammad Sardar, Inspector Bashir Ahmed, Hafiz Nasir Ahmad and Constable Rana Muhammad Ashrif, Muhammad Ameen, Shafqat Mehmood Muhammad iqbal and Muhammad Mansha to foil the smuggling attempt.

Tuesday, December 27, 2016

CUSTOMS BULLETIN

Faisalabad ASO seizes non duty paid garments during crackdown FAISALABAD NAEEM SHEIKH

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he Anti Smuggling Organization (ASO seized non duty paid garments.

The market value of seized items is Rs 7,05,149 involving duty and taxes amounting to Rs 4,47,772.

Sources told Customs Today that Collector ZulOikar Ali Chaudhary received credible information regarding smuggling of garments. After receiving the information the collector constituted a special team comprising Superintendent Saeed Akhtar Joiya, Ali Zahid, Mehmood Ahmed Dogar, Dilawar Hussain, Liaqat Ali, ZuliOkar Ali Awan, Muhammad Arshad. The ASO team intercepted a Suzukai pick up Ravi bearing registration no. LET-15-1109 near Shahkot Toll Plaza and recovered huge quantity of non duty paid garments and shirts including men’s shirts 1800 units, boys shirts, 1114 units. The consignment was being transported from Lahore to Faisalabad. The team asked the driver Abid Ali son of Wali Muhammad to produce legal documents regarding possession of garments but they failed to provide the same, while Muhammad Farooq Manager of M/s

Image Garments appeared in ASO ofOice and provide photo copies of

GDs invoice and certiOicates which were found irrelevant. The Anti

Smuggling Organization after registering a case of smuggling against

accused persons forwarded the case to Customs Adjudication.

SHC warns petitioners for not attending court proceedings KARACHI

M BILAL

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he Sindh High Court (SHC) has adjourned the hearing of a constitutional petition with caution that, if no one attends the next hearing on behalf of the petitioners, the interim order will be re-called. The court ruled this on the petition Oiled by Chaudhry Shabbir Hussain and

Shamshad Begam, challenging a case of tax fraud against them.

A two-member bench, headed

by Justice Aqeel Ahmed Abbasi, was hearing the petition. During the hearing, the petitioners called absent and no intimation was received. However, counsel for the Customs Department requested for time to Oile para-wise comments. The court granted time and directed the respondents to Oile their para-wise comments on the next hearing for a date to be Oixed in the third week of January, 2017.

Earlier, counsel for the peti-

tioners submitted that petitioner no 1 is sole proprietor and is operating his business in the name and style of M/s Shabbir Jan and Co and is registered in the sales tax department as an importer, exporter and wholesaler and has Oiling his monthly sale tax returns in accordance with law.

According to the petitioners, on September 2, 2013 at least 10 armed ofOicials of the Customs Department barged into the business premises without serving any notice and illegally seized various documents. They also seized various documents of

properties owned by the petitioner’s wife Shamshad Begam (petitioner no 2). The counsel for the petitioners further argued that the ofOicials humiliated and physical tortured the petitioner and lodged an FIR against them.

The petitioner was arrested on the allegation of tax fraud under the Sale Tax Act, 1990.

Citing Sectary Finance, the Commissioner Inland Revenue Zone1, TRO, Karachi, Directorate of Intelligence and Investigation, Deputy Director Directorate of Intelligence and investigation and Investigation ofOicer Intelli-

Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi

gence and Investigation Inland Revenue as respondents, the petitioners pleaded the court may declare that act of the respondents as illegal, mala Oide and arbitrary and restrain them from taking any coercive action against them.

The petitioners also pleaded the court to set aside the FIR and proceedings of the Customs Department against them.

It needs to be mentioned that on the last date of hearing, the court restrained the respondents from taking any coercive action against the petitioners.