Thursday, 28 December 2017 by customs bulletin

Daily on www.customsbulletin.com

Find us on

pAkiStAn’S fiRSt inDeptH newSpApeR on cuStoMS

Daily

ABC Certified

Karachi, Thu December 28, 2017

ISLAMABAD

M ARSHAD

www.customsbulletin.com

ederal Board of Revenue (FBR) Chairman Tariq Mehmood Pasha has convened a meeting of the directors general of the Inland Revenue on January 2, 2018 to evaluate their performance with special reference to the revenue collections in the Pirst half of the current Piscal year (July-December). According to sources, the government has incurred loss worth billions of rupees after the

Lahore High Court (LHC) barred the Inland Revenue Department from collecting sales tax. Sources added the issue of sales tax collection would dominate the meeting of the directors general. Sources told Customs Today that seven DGs from the Directorates of Inland Revenue; Islamabad, Karachi, Lahore, Faisalabad, Sukkur, Multan and Peshawar, will brief the meeting about their performance in the first half of the year. In this regard, the source said that DGs would also share their experiences and future plans

Vol 2, Issue No. 310

Price Rs. 14.00

of action to meet the revenue collection target for the current Piscal year. The sources said that Directorate General Inland Revenue was contesting a lot of legal and constitutional issues for its survival because of hard duty of implementation of almost four laws related to tax; income tax, sales tax and federal excise duty (FED). “These laws are related to domestic taxes, comprising income tax, sales tax and federal excise duty, which constitute about 90% of the revenue collection. These taxes are not only similar in essence, but also are interdependent in practice.

AFU Islamabad surpasses target by generating Rs102m of Customs Duty

DG Valuation Surriya to revise VR No 757/2015 on January 25

DC Palwasha eulogises importance of Customs Department in country

NAB to file supplementary reference against Sharif family

Customs Export recovers evaded tax of Rs 6.51m from two companies

AFU Islamabad collected Rs102m extra revenue of Customs Duty | See pAge 02 |

DG Valuation has decided to revise the Valuation Ruling No: 757/2015 on Jan | See pAge 03 |

The Customs is an authority or agency which is responsible for collecting tariﬀ | See pAge 04 |

NAB is likely to file a supplementary referenceintheAvenfiledApartments’case | See pAge 14 |

Customs Export has recovered evaded taxes and duties amounting to Rs 6.51m | See pAge 16 |

www.customsbulletin.com

ATIR settles matter against FBR during third week of Dec Thursday, December 28, 2017

Islamabad

ISLAMABAD: The Appellate Tribunal Inland Revenue (ATIR) disposed of M/s Klaguardia Logistics appeal during third week of December. Account Member Dr Ghulam Mujtaba Bhatti heard the case filed against offices of the Federal Board of Revenue. Bhatti had reserved the decision on the tax matter filed by M/s Klaguardia Logistics. Earlier, the bench had disposed of a matter filed by M/s TNB Liberty Power Limited. According to details, M/s TNB Liberty Power Limited had challenged a recovery notice issued to it under the head of outstanding income tax by the LTU, Islamabad.

Afu surpasses target by generating Rs102 million of customs Duty

ISLAMABAD

cuStoMS BuLLetin RepoRt

tARiQ DeRYA

www.customsbulletin.com

he Customs Auction Cell of the Model Customs Collectorate (MCC) Islamabad earned Rs42.00million through public auction of impounded vehicles and smuggling goods on 21nd of December Fiscal Year 2016-17. According to details given by Deputy Collector Tahir Iqbal Khattak that it has been an extraordinary auction regarding the earning of handsome revenue by gearing up ongoing struggle to meet the allocated target for 2nd quarter (October to December) FY17-18. He added that Collector Islamabad Dr. Saeed Khan Jadoon appreciated the Auction Cell for holding a well-organized auction. Telling about the details, Tahir said that the people from Rawalpindi, Islamabad and Peshawar particularly participated in the said auction. The auction was organized by the Alvi Auctioners along with the customs staff of the MCC Islamabad under the supervision of Deputy Collector Auction. The auction was organized according to the Customs bylaws of 1969. The bidders deposited 25% of amount on the spot out of the total value of the lots.

he Customs Air Freight Unit Islamabad collected Rs102million extra revenue of Customs Duty against an allocated proportional revenue target of three weeks of December Fiscal Year 2017-18. According to details explained by Nisar Ahmed Phullerwan, Additional Collector Air Freight Unit (AFU) Islamabad, while talking with Customs Today, that the AFU received Rs271million of CD against an assigned proportional revenue target of Rs169million during Pirst three weeks of December FY 17-18. The AFU earned Rs143million under the same head during the same period of corresponding FY16-17. The AFU showed 108% of achievement during 21 days of December FY17-18 against an earmarked revenue collection target of December FY17-18. He added that the AFU rePlected 160% growth against an allocated proportional revenue target under the head of CD. He notiPied the correspondent that the AFU was assigned a revenue collection target of Rs250million as CD for the month of December FY17-18. This target has not only been achieved in 21 days of the current month but it has also surpassed the allocated target before ending of the month. The AFU Islamabad collected Rs34.08million extra rev-

Auction cell islamabad fetches Rs42m by selling vehicles & items

enue against an earmarked revenue collection target of November FY1718. The AFU was assigned a high target for FY17-18 against the previous FY16-17. During the month of November FY17-18, the AFU got surplus amount against an allocated revenue collection target under the head of CD. He informed CT that, during said period, the AFU earned surplus revenue of Rs255.06million as CD while it was earmarked Rs228.61million target of CD for the month of November FY17-18.

The AFU Islamabad was earmarked Rs456million an additional revenue collection target as Customs Duty (CD) during FY17-18 against the corresponding FY16-17. The AFU was assigned a revenue collection target with the amount of Rs3109million of CD for FY17-18 while it was allocated Rs2653million under the same head for FY16-17. The Additional Collector further told the correspondent that, during 1st Quarter (July to September) FY1718, the AFU Islamabad was ear-

marked a revenue collection target of Rs488.87million while it was assigned Rs457.68million as CD during 1st Quarter FY16-17. During 1stQ FY17-18, the AFU was allocated Rs31.19million revenue collection target against 1st-Q of previous Financial Year 2016-17. During the month of September FY17-18, the AFU was eamarked Rs154.77million as CD while it was assigned Rs143.27million revenue collection target under the same head for corresponding September FY16-17.

iHc issues fresh directives on plea filed by Sun Diplomatic

ISLAMABAD

nAeeM uLLAH tARiQ www.customsbulletin.com

division bench of the Islamabad High Court (IHC) on Wednesday issued directives to parties hearing a customs matter Piled by M/s Sun Diplomatic Bonded Warehouse (Private) Limited against the Customs Appellate Tribunal, Islamabad. A division bench of the IHC comprising Justice Athar Minallah and Jus-

tice Mian Gul Hassan directed the parties to submit related record in the case. M/s Sun Diplomatic Bonded Warehouse had challenged an announcement of the tribunal before the IHC bench. Meanwhile, Justice Aamer Farooq issued fresh notices to the parties to assist the court on the matter of M/s Sun Diplomatic Bonded Warehouse. The appellant had challenged the act of recovery of said amount by commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as

the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty. M/s Sun Diplomatic Bonded Warehouse Private Limited had prayed the court that FBR ofPice had issued a recovery notice to the company which did not hold lawful grounds. The appellant had prayed the court to declare the act as illegal and without any lawful authority and an interim stay may be granted against recovery proceedings.

www.customsbulletin.com

SHC orders Hyderabad DC to confirm number of cigarette cartons KARACHI: Sindh High Court has ordered Hyderabad Customs’ Deputy Collector to appear before the bench to confirm the number of cigarette cartons confiscated by a raiding team. The order was issued by a division bench comprising Justice Munib Akhtar and Justice Omar Sial. A local importer/dealer purchased 375 cartons of cigarette from a Customs auction and the same were stored a godown located within limits of Hyderabad division. The Customs authorities raided two godowns. The petitioner/purchaser, Haji Fazal, challenged the confiscation of the cartons before the Tribunal which ordered release of the same.

SHc bars income tax department from Super tax recovery

Thursday December 28, 2017

Karachi

Dg Valuation Surriya to revise VR no 757/2015 on January 25

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Sindh High Court had allowed an application for interim order in two identical suits challenging super tax. Justice Muhammad Ali Mazhar earlier heard counsel for Franklin Law Associates representing plaintiﬀ Tariq Rafi in a fresh challenge to section 4B of the Income Tax Ordinance which imposes “Super Tax” on persons having income above 500 million. Tariq Rafi, owner of Ocean Tower and five others prayed to the court to suspend recovery notices on ground that such a tax cannot be imposed at the strength of the Finance Act. The tax was to be used for welfare of the internally displaced people.

foreign currency Account Scheme KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Foreign Exchange Rates Committee of Financial Markets Association of Pakistan issued the following Base Rate, here on Tuesday. FOREIGN CURRENCY ACCOUNTS SCHEME RATES BAY BID MAXIMUM RATES FOR PAYMENT OF INTEREST BY ETHERIZED DEALERS R A T E S U.S. DOLLARS VALUE 27-12-17 For 3 months and over but less than 6 months 1.4358% PA 2.1858% PA For 6 months and over but less than 12 Months 1.5836% PA 2.3336% PA For 12 months 1.8522% PA 2.7272% PA For 2 Years 1.8522% PA 3.2272% PA For 3 Years 1.8522% PA 3.4772% PA For 4 years 1.8522% PA 3.7272% PA For 5 years 1.8522% PA 3.8522% PA POUND STERLING VALUE 27-12-17 For 3 months.

KARACHI

wAQAR AHMeD AnSARi www.customsbulletin.com

irectorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 757/2015 on January 25, 2018, it is learnt here. According to the details, Director General Surriya Butt has said that the department is reviewing suggestions from importers to set new prices of halal chicken and turkey meat (frozen). She said that some valuations, which were issued in 2015, were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international markets. Sources told that a petition was submitted by the importers to the Customs Valuation in which change in the prices of halal chicken & Turkey meat ( frozen) was requested. Sources told that the Valuation Ruling No: 757/2015 was issued on September 3, 2015. A meeting was held with the stakeholder’s on 19 December 2017. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained. Meanwhile, Directorate General, Cus-

toms Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 713/2015 on January 18, 2018, it is learnt. According to the details, Director General Surriya Butt said that the department was reviewing suggestions from importers to set new prices of energy drinks H.S Code 2202.1010. She said that some valuations, which were issued in 2015, were being reviewed from the beginning. Moreover, the

Sources told that a petition was submitted by the importers to the customs Valuation in which change in the prices of halal chicken & turkey meat ( frozen) was requested

SHc orders customs to release consignments

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Sindh High Court has ordered release of consignments giving relief of Section 81 to the petitioners/ importers. A SHC’s appellate bench, comprising Justice Munib Akhtar and Justice Omar Sial, heard Imran Iqbal Khan, Asad raza Khan and Salman advocates representing a number of petitioners. The counsel submitted

that SHC customs bench has allowed interim relief of release of goods where the importer/petitioner has questioned the Valuation Ruling for being issued in violation of Section 25-D of the Customs Act 1969. The counsel for petitioners referring to the judgment in PTD 2016, 702 contended that Customs Department instead of complying with the judgment were denying the benePit of section 81 in cases where Order in Revision was challenged before Special Customs Appellate Tribunal. The sub-

mitted that a lawful concession could not be denied by way of a circular issued by Chief Collector, Customs South dated 22-11-02017. They contended that non following of the dictum laid down in the said case law (Saadia Jabbar and Danish Jahangir cases) resulting in consignments piling up at the port. The counsel for respondents opposed the plea on basis that Valuation Ruling is in Pield still petitioners Piled the appeal before the tribunal bench hence they cannot seek benePit of section 81 of the Customs Act 1969.

valuations will be set in view of rising prices in the international markets. Sources said that a petition was submitted by the importers to Customs Valuation in which change in prices of energy drinks H.S Code 2202.1010 was requested. Sources said the Valuation Ruling No: 713/2015 was issued February 2, 2015. A meeting was held with the stakeholders on 18 December 2017.

pak rupee depreciates to Rs110.90 he Pakistan rupee depreciated against the dollar both in interbank and open market. As per the local money market, the dollar gained 50 paisas in interbank for buying at 110.30 and for selling at 110.50, while it added 35 paisas in open market for buying at Rs110.60 and for selling at Rs110.90.

www.customsbulletin.com

Low pressure of gas rile people Thursday December 28, 2017

Lahore

SARGODHA: Citizens are facing severe problem due to low gas pressure at peak hours which forced them to use LPG in their homes. They urged the authorities concerned to take up the matter of gas shortage and resolve it on priority basis. They said that people were forced to bring their food from restaurants, bakeries and markets in cold weather due to low pressure and gas unavailability. A resident of Sultan colony, Malik Mehmood said that gas unavailability was creating problems for the people. Another resident of Bismillah Homes, Tahir Shah Bukhari said that his grandchildren were going school for last many days without having breakfast as the gas pressure was not enough to cook at home.

fto hears appeal Dc palwasha eulogises importance of khan and khal ferosh of customs Deptt in country against Rto Sialkot LAHORE

SAJiD nAwAZ

www.customsbulletin.com

he Federal Tax Ombudsman (FTO) has adjourned the hearing of a case Piled by Shabbir Hussain Khan and Khal Ferosh, Railway Road Gujrat, against the Regional Tax OfPice (RTO), Sialkot, until the next hearing. According to details, FTO Advisor Haji Ahmed heard the case in which counsel for the appellant argued that the RTO had failed to release the sales tax refund of the last two years claimed by the company. He said the RTO collected excessive tax from Shabbir Hussain Khan and Khal Ferosh for the last two years. They approached the commissioners concerned many times for issuance of the refunds but the

1st ever mechanical cotton picking at ccRi irst ever in the history of the country, the cotton was picked mechanically at Central Cotton Research Institute (CCRI). The machine will pick cotton upto to 15 acre in a day for which dozens of labourers were engaged in the past. Briefing a group of journalists, Director CCRI Dr Zahid Mehmood said that shortage of female cotton pickers was creating diﬃculties for the growers adding that the latest technology will help them getting out of the problem in days to come. He said that they were experimenting on diﬀerent varieties of cotton and its production technology which would be suitable for mechanical picking in future. He informed that there would a special variety and specific method of cultivation for this purpose. Director CCRI maintained that the cotton would be picked twice mechanically and the picking charges would be lesser as compared to hand picking. –CB Report

RTO ofPicials did not pay refunds even after the passage of reasonable time. At the end, the company decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO to clear refund claims. The counsel further said the RTO should refund the excessive collection in the wake of taxes by the end of Pinancial year but the situation is quite otherwise. Delay in issuance of refunds put burden on taxpayers, he said, adding the RTO Sialkot should audit cases and release extra amount collected from the taxpayers. On the other hand, counsel for the RTO argued that appellant Shabbir Hussain Khan and Khal Ferosh has not submitted all the record to the ofPice on which basis it is claiming for refunds. If appellant provides accurate record, the RTO will issue refunds, if any, after a proper assessment.

LAHORE

M HAYAt

www.customsbulletin.com

he Customs is an authority or agency which is responsible for collecting tariff and

controlling the Plow of goods into and out of a country. These views were expressed by Customs Preventive Deputy Collector Palwasha Syed at the e-commerce Road Show jointly held by TDAP and Alibaba.com at the Lahore Chamber of Commerce and Industry. She added that e-commerce is the buying and selling of goods and

services, or the transmitting of funds or data, over an electronic network, primarily the Internet. The business transactions occur either as business-to-business, business-toconsumer, consumer-to-consumer or consumer-to-business. “Goods imported into Pakistan; goods brought from any foreign country to any customs station, and without payment of duty there, transshipped or transported for, or thence carried to, and imported at any other customs-station; and goods brought in bond from one customs station to another,” She explained. TDAP Director Muhammad Usman Qureshi said that Pakistan has huge potential for trade and industry and e-commerce can play a vital role in enhancing exports volume of the country and earn important foreign exchange. He said that the authority is aimed at promoting business activities and is always there to help business community to modernize the trade and industry.

SBp directs banks to provide non Haroon Steel industries appeal adjourned financial advisory services to SMe sector he Federal Tax Ombudsman concerned many times for issuance

tate Bank of Pakistan (SBP) has directed commercial banks to provide non Pinancial advisory services (NFAS) to Small and Medium Enterprise (SME) sector with immediate effect. In a circular issued on Friday, the SBP despite having large contribution in our national income, exports’ growth and employment generation, SMEs are constrained in their access to Pinance and other banking services. In view of their role in the economy, banks and DFIs need to adopt dedicated approach

while targeting SMEs as their clients and go beyond providing Pinancial services only. In consideration of the fact that majority of the SMEs lack expertise to professionally manage Pinancial, technological, marketing and human resource aspects of their businesses, banks should play supportive role in providing non-Pinancial advisory services (NFAS) to their existing and potential SME clients. Owing to their easy access and inPluence on SMEs through large branch networks and Pinancial facilities. –CB Report

(FTO) has postponed the hearing of a case Piled by M/s Haroon Steel Industries, against the Regional Tax OfPice (RTO) Gujranwala until the next hearing. According to the details, FTO Advisor Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the RTO Gujranwala has not released the refund to the appellant of from last two years. He said that the RTO Gujranwala collected excessive tax from the appellant during the last two years. The company approached the ofPicer

of refunds but the department did not pay the refunds after the passage of a reasonable time. Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO), seeking interference in this case. The counsel appealed the FTO advisor to direct the commissioner of RTO Gujranwala to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. –CB Report

textile sector wants tax-free import of yarn

A LAHORE

cuStoMS BuLLetin RepoRt www.customsbulletin.com

s the government is all set to withdraw sales tax and customs duty on import of cotton on the demand of spinning industry by putting aside the interest of the growers and ginners, the Pakistan Readymade Garments Manu-

facturers & Exporters Association has appealed to the authorities to also relax duties on yarn import to encourage the value addition, reduce cost of doing business and bridge the gap between production and consumption. PRGMEA Chief Coordinator Ijaz Khokhar asked the Textile Division to submit a summary to the ECC for duty relaxation on yarn import in line

with the benePits being provided to the spinners. “With a view to bridge the soaring gap of trade dePicit, the government will have to provide level-playing Pield to the whole textile chain instead of supporting only yarn manufacturers, which have just around 350 units, against the valueadded sector of 10,000 units across the country. With regard to the employment generation, one spinning

unit generates just 5% employment while the garment unit creates 95% employment,” he added. Ijaz Khokhar said that despite the fact that around 1.86 million bales of cotton are lying unsold in the country but the government is going to facilitate the spinning industry on the plea that domestic cotton is of short staple, it will have to remove restrictions on yarn import too under the same plea.

www.customsbulletin.com

MULTAN iMRAn ALi www.customsbulletin.com

he Federal Board of Revenue (FBR) should bring reforms in the Pield operations of Custom Intelligence and Investigation for the betterment of department and protection of legal importers in the country. Customs Intelligence and Investigation Pield staff is continuously violating customs laws by checking legally cleared shipments from dry port and they are insulting genuine importers by alleging their import goods as smuggled one. This was stated by General Secretary Multan Tax Bar Association (MTBA) Imran Ghazi in his exclusive interview with Customs Today. He said that Customs Intelligence and Investigation department was formed with a purpose to eradicate smuggling from country and for promotion of legitimate business because smuggling was causing huge loss to national exchequer. Customs Intelligence and Investigation is working beyond their powers by disturbing genuine importers through their illegal actions and we received frequent complaints from importers about their violations that they stopped the lawfully cleared import consignments from ports after proper examination and payment of duty taxes. Customs Intelligence and Investigation have no power to make scrutiny of lawfully imported goods cleared from dry ports but they checked imported consignments at every check posts and road to harass importers for making bribery illegally. Ghazi said that Customs Intelligence and Investigation detained and seized legally cleared consignments by misusing their powers and framed charges that importer cleared their shipments through mis-declaration and use wrong PCT head for clearance from dry port. He told that every

Thursday, December 28, 2017

cleared import consignment departed has been examined properly from dry port after the clearance of Customs Intelligence and Investigation. Importers face malpractice from Customs Intelligence and Investigation for transporting their legal import shipments to their desire destination and every consignment face routine checking of goods from Karachi to Punjab. He expressed that due to non-professional behavior and corruption of Customs Intelligence and Investigation clearance of import shipments from Multan Dry Port has almost been diminished. Customs Intelligence and Investigation did valuation and assessments of import consignments illegally to frame mis-declaration cases of the cleared imported consignments as they have no experience of appraisement. Ghazi said that Customs Intelligence and Investigation have no powers under section 25 and 32 of Customs ACT, 1969 to re-examine import consignments because they have not any appraisement ofPicer in their Pield staff. Most of the time Customs Intelligence and Investigation de-stuffed the import containers and after their illegal examination import goods are not placed again and sometimes import goods also damaged in the illegal process of examination and delayed due to unnecessary examination of corrupt customs intelligence staff. We need to aware importers about customs laws through mass media campaign that Customs Intelligence and Investigation has no power to examine the legally cleared import consignment at different check points to get rid of these corrupt ofPicials. Imran Ghazi informed that Customs Intelligence and Investigation is violating Cus-

toms laws badly through their malpractice and they are doing contempt of court openly through appraisement of imported goods .He appealed from High Court and Supreme Court of Pakistan that they should take suo moto notice against them on their illegal actions against importers to protect legal trade in the country. Small importers are main victim of Customs Intelligence and Investigation malpractice and their high-ups should take disciplinary action against dishonest Pield staff to protect them. The Federal Board of Revenue should introduce digital monitoring system for the examination of import consignments instead of Customs Intelligence corrupt staff and seizure report challan should be made online to eliminate their inefPiciency.

e ligenc s intel m o t s t was cu rtmen d that i a a p s e e d H ation ose to vestig n i d a purp n a h t i ntry w d m cou o r f forme g ate ugglin egitim l ate sm c f i o d a n r e otio g was r prom ugglin m s and fo e s au tional ss bec s to na s o busine l e g hug causin quer exche

www.customsbulletin.com

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

Mantra of fourth industrial Revolution

f Pakistan is heading toward fourth Industrial Revolution, the three erstwhile are still unheard though various industrial cities have sprung up in four sides of the country since the last 70 years of independence. The nation, which started its journey from a â&#x20AC;&#x2DC;thornâ&#x20AC;&#x2122;, is the only nuclear power in the Islamic world and has strong industrial base across the country. However, political uncertainty, chaos and hostile attitude of the neighbouring countries have stemmed its growth to the desire level and it could not make an entry into the list of the first world countries. If there are forces of hostilities hovering around the skies of Pakistan, there are host of internal reasons, including mismanagement, corruption and ill-designed policies, which have kept the country in low industrial profile. Meanwhile, the population of the country has grown out of proportion and has been heading toward becoming the fifth largest country of the world. The successive governments have failed to manage human resources, which could be utilized as asset for the nation building rather than a burden consuming the natural resources. A large population is blessing for the business and industry as it can work as an engine of growth in a consumer market. People need new housing units, electricity, health and education services as well as all amenities of life. People mean business and business means people. Where there are people there is business. However, the policymakers have to go a long way to understand this simple truth at their best. Now the fourth industrial revolution mantra is the talk of the town. But there is a need to bring paradigm shift not only in the industrial policy, but also in the laws governing business, trade and investment. Pakistan can become hub of industry and hub of investment once incentives are provided to the foreign investors. Europe is unraveling and falling to its knees due to rising cost of doing business. Pakistan has cheap and skilled labour and the investors from rich countries can be invited to invest in proposed industrial zones along the China Pakistan Economic Corridor and motorways across the country. According to the world media report, despite political chaos and uncertainty, Pakistan is heading toward industrial revolution and its economy will cross the economies of rich countries like France and Italy. However, the policymakers in Pakistan will have to understand and accept the ground realities and principles of modern economy.

growing financial gap of $12 billion A

LAHORE

DR AftAB AfZAL

www.customstoday.com

ccording to newspaper reports, State Bank of Pakistan Governor Tariq Bajwa has told the National Assembly Standing Committee on Finance and Revenue about serious challenges confronted by the national economy, including external Pinancing gap of around $12 billion during the current Piscal year. The governor explained the reasons behind devaluation of the Pakistani rupee and possible challenges to the national economy in the near future. As a matter of fact, the government and the central bank ofPicials are reluctant to share information with general

public on the deteriorating Pinancial situation of the country. Experts believe the government had probably only one option to deal with overwhelming Pinancing gap and to stop the foreign exchange reserves fall below $14.6 billion. The government, which was thumping its chest on Ploatation of international bonds, suddenly came under pressure and had to lower its currency value. Keeping in view the current situation, the governor ruled out any possibility to Ploat another sovereign bond in the international market. The government is likely to seek further loans from the donor agencies without adopting any austerity measures or streamlining the Pinancial affairs of the country. If

short-term loans are small menace, the long-terms loans are big misadventure and this aspect should also be kept in mind before seeking foreign loans. In the event of the US threats and Indian hegemonic designs, threats to the national security as well as economy have been multiplied in recent months. The nation is expecting general elections next year and sudden change of political spectrum in the country has left bad effects on every sphere of the economy. In a situation where the political elite is habitual of stashing its money in foreign banks, how the foreign investors can be persuaded to invest in this country. The gross external Pinancial requirements

have already reached over $20 billion during the current Piscal year. Out of $20 billion liabilities, the government has only around $8 billion, causing a Pinancial gap of $12 billion. Keeping in view the situation on the ground, experts believe the government will have to introduce structural reform in the tax collection system which is, currently, outdated and obsolete. The tax rates are high but tax net is limited and tax to GDP ratio is the lowest in the region. The tax collection system also needs to be simpliPied and instead of introducing tax amnesty schemes, the government should overhaul the tax collection system and curtail the powers of the collection and assessment agents.

www.customsbulletin.com

SHC adjourns asphalt paver case KARACHI: A Sindh High Court’s division bench has adjourned hearing of asphalt paver case after granting time to Pakistan Customs’ counsel in a petition filed by an importer of construction machinery/vehicles. The bench, comprising Justice Munib Akhtar and Justice Omar Sial, was hearing a petition filed by Sachal Engineering Works which imported “Asphalt Paver”, used in construction of roads. Ms Dil Khurram Shaheen advocate appearing for the petitioners maintained that delay in release of the vehicle in dispute is affecting business of the petitioner/importer. Counsel for Pakistan Customs Kashif Nazeer conceded that this vehicle is not hit by import policy, however he sought some time to resolve the controversy. The bench allowing the request put of further hearing till Dec 26.

iHc settles customs reference filed by M/s Al catel Lusent pakistan Ltd

Thursday December 28, 2017

National

customs court seeks challan against suspects in cigarettes smuggling case

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

slamabad High Court on Friday disposed of the customs reference filed by M/s Al Catel Lusent Pakistan Limited with directives to ATIR to rehear the matter. IHC bench comprising Justice Shaukat Aziz and Justice Mohsin Akhtar had reserved the decision on the matter after hearing final arguments. M/s Al Catel Lusent Pakistan Limited had filed the case challenging an announcement made by the Appellate Tribunal Inland Revenue (ATIR)-through which it had sustained decision announced by the department’s adjudication pertaining to the show cause notice to M/s Al Catel Lusent Pakistan Limited for outstanding tax recovery. Through both the references, M/s Al Catel Lusent Pakistan Limited had named chief commissioner Inland Revenue, LTU, assistant commis-

KARACHI

M B RAnA

www.customsbulletin.com

ustoms Taxation and AntiSmuggling Court Judge Syed Faiz Rasool Rashdi has directed the investigation ofPicer to complete investigations and submit a charge sheet against suspects namely Muhammad Ibrahim and Bashir. The suspects were booked for attempting to smuggle non-duty paid contraband foreign cigarettes from Iran to Karachi. During the hearing, the investigation ofPicer sought time to submit the charge sheet, therefore, the court granted him time and adjourned the matter. Earlier, ofPicials of the Anti-smuggling Organization produced suspects, bus driver Bashir and cleaner Muhammad Ibrahim, before the court for seeking physical remand, but Ibrahim Pled from the court. Sources said that he was not handcuffed during the hearing. However, the customs authorities arrested him from Balochistan when he was trying to enter Afghanistan via Chaman Border and produced him before the

court. On the last hearing, the court sent him to jail on judicial remand and directed the investigation ofPicer to produce them on the next date

of hearing along with progress report. According to the prosecution, on credible information, ofPicials of the customs department intercepted

a bus which was coming from Quetta and during the search, recovered huge quantity of foreign brand cigarettes from their possession.

fiA fails to pursue dozens of pending cases of cDA sioner Inland Revenue Withholding, LTU, commissioner Inland Revenue (Appeals), LTU, and Federation of Pakistan through the chairman of Federal Board of Revenue (FBR) as respondent in the case. Show-cause notices had been issued for the tax year 2013 in head of income tax under sections of Income Tax Ordinance, 2001. M/s Al Catel Lusent Pakistan Limited had prayed the court to direct LTU not to recover the said amount and abstain from coercive action in this regard. The petitioner had prayed the court operation of the impugned notices issued by the tax authority may kindly be suspended till the decisions of appeal pending before the LTU.

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ederal Investigation Agency (FIA) has failed to pursue dozens of pending corruption cases in Capital Development Authority (CDA). The FIA officials worked hand in glove with CDA officials that is why the corruption cases of billions of rupees have been lingering on for years. ‘For the last five years, not a single case has seen its logical conclusion, which is unfortunate,” they said. Mayor of Islamabad and CDA Chairman, Sheikh Ansar Aziz said that he often signed files for approval to send record sought by the FIA every week. “It is FIA’s inefficiency that they have failed to conclude a single case in the past halfdecade,” he said.

These sources have told this scribe that taking bribes is a common practice in the FIA and the officials delay the corruption cases despite having concrete proofs that is why no major de-

velopments are made in such cases. Aziz was grilled by FIA’s Islamabad zone director and officials of anti-corruption cell in August this year over CDA’s inability to provide the record in different

inquiries. Upon contact, Aziz claimed that the authority always cooperates with the investigation agency. FIA’s claim is baseless and unperceivable, he concluded. CDA’s Deputy Director Media Malik Saleem could not be reached. At this point, 12 mega cases pertaining to corruption of billions of rupees in CDA are still pending at the FIA after being labelled as ‘inconclusive’. These cases include; La-Montana case, illegal promotions, illegal recruitments, Grand Hyatt case, Safa Gold Mall case, deforestation of Margalla Hills, tree plantation campaign at Islamabad highway, double allotments by land directorate, illegal billboards and embezzlement in advertisements by directorate of municipal administration, illegal housing societies case, Kachi Abadi case and Shifa International Hospital case.

www.customsbulletin.com

Court issues non-bailable warrants against donkey-hide smugglers Thursday December 28, 2017

National M/s Ahmed Hassan textile moves SHc against imposition of taxes

KARACHI: Customs Court Judge Syed Faiz Rasool Rashdi issued the nonbailable arrest warrants against absconding accused booked in a case of attempting to smuggle donkey-hides worth Rs125million from Lahore into Karachi and then into China. The local police recovered 4,986 donkey hides which were put inside 642 bags. The operation took place at a shop located in Gulistan-e-Jauhar, Block-12, where a Chinese citizen Tu-zhong Xiao, Syed Ehtisham Zaidi, Muhammad Faisal Bhutto, Muhammad Jumman, Zeeshan Jan, Daniyal Rahman.

fBR facing Rs283b shortfall to meet 1H target of Rs1,757b

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Sindh High Court (SHC) has issued notices to the customs oﬃcials and the deputy attorney general, directing them to file their respective para wise comments on a constitutional petition filed by M/s Ahmed Hassan Textile Mill (Private) Limited against demand of Rs 15,550,537 being 10 percent customs duty and 17 percent sale tax on import of natural gas power generation unit. A twomember bench, comprising Justice Munib Akhtar and Justice Omer Sial, was hearing the petition. Earlier, counsel for the petitioner stated that it has imported consignment 01 unit brand new complete Caterpillar model G 35 20C Sit a spark Ignited Turbo Charged after cooled of 1972 EKW KVA, continuous power at 1500 RPM, 3 Phase, 11000 Voltas 50 Hertz 0.8 power factor which reached to Port Muhammad Bin Qasim and filed Goods Declaration (GDs) according with law.

Zafar Jappa relinquishes charge as Secretary (opS) uhammad Zafar Haider Jappa, a BS-18 oﬃcer of Inland Revenue Service, has relinquished the charge as Secretary (OPS). The oﬃcer, in pursuance of Board’s Notification No.3212-IR-II/2017 dated 13-12-2017, relinquished the charge of the post of Secretary (OPS), Federal Board of Revenue (HQ), Islamabad, with effect from December 13. Meanwhile, The Federal Board of Revenue has relieved four Inland Revenue Service officers of BS 20-21 from their duties with immediate effect to join their new place of postings. The officers, who were relieved in pursuance of Law and Justice Division’s Notification No F.1(2)/2015A.IV, dated 30.11.2017. –CB Report

he Federal Board of Revenue (FBR) is facing Rs283 billion to achieve revenue collection target of Rs1,757 billion for the JulyDecember period. The ofPicials said the FBR collected Rs1,474 billion till Wednesday and the revenue body is required to meet the half-year target in the remaining six working days. OfPicials said FBR maintained a growth of around 20 percent in revenue in the Pirst half over the same period a year earlier. The half year target is 43 percent of the full-year revenue target of Rs4,013 billion. FBR expects substantial amount to be received on account of advance tax from corporate entities and as-

sociation of persons due in the last week of the current month. Officials said another bulk inflow is expected from banking sector, which will pay their full-year liability by December 31. Decem-

ber’s tax revenue target was set at Rs455 billion, up 19 percent from Rs383 billion in the same month of the last year. “FBR is facing difficulties in revenue collection due to weekly holidays falling on the last

two days of the year,” an official said. FBR collected Rs1,302 billion during the first five months of the current fiscal year as compared to Rs1,089 billion in the same period of the last fiscal year.

customs seizes Rs 31 million currency at Allama iqbal Airport from Jan-Dec 2017 T

LAHORE

M iMRAn MeHAR

www.customsbulletin.com

he Customs teams conPiscated currency of different countries amounting to Rs 31 million from passengers at Allama Iqbal International Airport during different operations from January 2017 to December 2017. Sources told customs Today that the customs teams conducted operations in different Plights bounded for different countries during the period. A number of currency smuggling attempts were foiled by the customs at departure lounge of the airport during. Flights were going to Dubai from Lahore, Lahore to Turkey, Lahore to Jeddah, Lahore to Bangkok, Lahore to Muscat and Lahore to different cities of China. The Customs teams took actions in Pakistan International Airlines (PIA)

Plights, Turkish Airways Plight, Thai Airways, Gulf Air and Saudi Arabian Airlines. During actions, the customs authorities recovered Rs 31 million. While Customs al-

lowed some of passengers to go after conPiscation of currency from their possession while a number of cases were also registered against the accused persons. The

security ofPicers had launched an investigation into the matter. Pakistan Customs conPiscated $266746, 28189 Japanese Yuan and 13183 UK pounds.

www.customsbulletin.com

Customs seizes various kinds of imported mobile-phones & watches KARACHI: The Customs Collectorate has impounded diﬀerent kinds of mobile phones and imported watches worth more than Rs3million. Sources told Customs Today that, on the directives of Deputy Collector Gwadar Junaid Mehmood, an operation against smuggled items and non-duty-paid luxury vehicles is going on in full swing and several raids have been conducted during previous month of November and operation of smuggled items is also still going on during the current month of December. Sources told CT that, on Wednesday afternoon, Deputy Collector Gwadar constituted a team of Customs Anti-Smuggling Organization (ASO) under the supervision of Customs Preventive Inspector Wahad Idrees and others.

15,670 vehicles challaned, 110,654 lifted by ctp in 2017 RAWALPINDI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he city traffic police (CTP) issued 15,670 challan slips to vehicles and motorcycles on parking rules violations in 2017 while 110,654 vehicles and motorcycles parked in no parking areas were lifted through fork lifters. According to Chief Traffic Officer (CTO) Rawalpindi Yousaf Ali Shahid, the CTP launched grand operations against the traffic rules violators and action in accordance with the law was taken against wrong parking, double parking and the vehicles and motorcycles parked in no parking areas. Special squads, mobile squads and special CTP teams were constituted to clear the roads, he added. The CTO said Educa-

tion Wing of CTP was making efforts to create awareness among the road users while special workshops were also organized in schools, colleges and universities to guide the students about traffic rules during the year. The students were acquainted with the traffic rules as the commitment of young drivers to follow traffic rules could help the CTP immensely in ensuring a safe road environment, he added. He said though the traffic wardens were doing their best for ensuring safe roads in the city but, the cooperation of the students and other road users would help a lot in achieving their objective. All out efforts were being made to inculcate the traffic sense among people, he said adding the workshops were a sequel of this programme, which would also be extended to other educational institutions.

National

pcA unearths tax evasion of Rs 6.50m by M/s tajuddin fabrics and exports

pakistan Railwlay set to relaunch kohat Rail car from Jan 10 RAWALPINDI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

akistan Railways (PR) will relaunch Kohat Rail Car from January 10, as all arrangements in this regard are being finalized. A Railways oﬃcial informed APP that the Kohat-Rawalpindi rail track had been rehabilitated besides renovating and rehabilitating four railway stations, two each in Rawalpindi and Peshawar divisions to facilitate the passengers of the Kohat Rail Car. The groundwork for resumption of the rail-car service had been completed at a cost of Rs502 million, he said. The service was abandoned in 2013. Now, Pakistan Railways would relaunch the train service between Rawalpindi and Kohat to provide cheaper traveling facilities to the people of Kohat, he said adding, the train would have around 400 passengers capacity. The train service was suspended between the two cities due to financial crunch in the Pakistan Railways, he said. Now, the PR’s financial position was improving gradually and it had relaunched some other trains, he added. He said the Kohat Rail Car is being restarted as former Prime Minister Muhammad Nawaz Sharif had announced operation of the train last year during a public meeting held in Kohat.

KARACHI

wAQAR AHMeD AnSARi www.customsbulletin.com

he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 6.50 million allegedly by M/s Tajuddin Fabrics and Export, Karachi, it is learnt here. Sources told Customs Today that M/s Tajuddin Fabrics imported a consignment of fabric colours and chemicals, from Malaysia and got it cleared from the PICT vide GDs on October 16, 2017 by paying customs duty at 10 percent after claiming the benefits of the SRO 561/2007. However, the subject items are correctly classifiable under the PCT 5608.7809 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 6.50 million. The goods were cleared through Examiner Ovaise Mengal and Appraiser Mukhtar Gul. Sources said that the importer violated the provisions of Section 58 (2) & (8A) of the Customs Act1969, Section 18 read with Section 57 of the Sales Tax Act-1990 and

Thursday December 28, 2017

Section 187 of Income Tax Ordinance 2001 punishable under clauses (239) and 176 of Section 667(7) of the Customs Act-1969, Section 78 of the Sales Tax Act1990 and Section 78 & 136 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax

Special Procedure Rules 2007 (special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001. It is necessary to mention here that Post Clearance Audit has detected a number of cases during last two months of October and November.

Another importer challenges VR no 874/2016 in SHc

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Sindh High Court (SHC) on Wednesday issued notices to the customs authorities and deputy attorney general, directing them to Pile their respective para wise comments on a constitutional petition Piled by M/s FL Enterprises and nine other importers. The petitioner has challenged the determination of customs values of “ceramic and porcelain tiles” over and above 12.5 percent of the valuation ruling no 874/2016 by Director General of Valuation. A twomember bench, comprising Justice

Munib Akhtar and Justice Omer Sial, was hearing the petition. Earlier, counsel for the petitioners stated that they import goods having description “ceramic and porcelain

tiles”.It was informed by the Customs Department that Director General, Directorate General of Customs Valuation, Customs House Karachi conducted revision proceedings un-

der section 25 D. However, the petitioner submitted that the DG had no jurisdiction to revise customs values of the subject goods over and above 12.5 percent of the valuation ruling no 874/2016 dated 22/06/2016. Citing Chairman Federal Board of Revenue, Collector of Customs Collectorate West, Collector of Customs Collectorate East, Collector of Customs Collectorate Port Muhammad Bin Qasim and Director General, Directorate General of Customs Valuation, Customs House Karachi as respondents, the petitioners pleaded the court to declare the act of the respondents as illegal, mala Pide and arbitrary.

www.customsbulletin.com

World Customs

Iran’s exports to EU up 122% in Oct

TEHRAN: Iran’s exports to Europe grew 122 percent in October, in comparison with the same month in 2016, European Union’s statistics agency Eurostat reported. The figure reached €986 million in October from its previous €443 million in the same period in 2016. Iran-Europe trade in the named month increased by 54 percent and stood at €1.85 billion compared with the tenth month of 2016 when the figure was €1.2 billion, the same report confirmed.

Thursday December 28, 2017

thai woman imports 10kg dried Japan is the largest importer of korean drugs frogs into Singapore TOKYO

cuStoMS BuLLetin RepoRt www.customsbulletin.com

BANGKOK

cuStoMS BuLLetin RepoRt

www.customsbulletin.com

39 year old Thai woman who had earlier been Pined for bringing assorted meat products without a licence into Singapore has been penalised again for the same offence by a local court. Straits Times reported that this was the Pirst time a case of illegal import of dried frogs was brought to a court. On Wednesday (20 December), Kanokporn Junsricha was Pined $10,000 (£7464.10) after she admitted to illegally bringing 10kg of dried frogs into the country on 9 December, the website reported. Junsricha had committed the same crime in August this year when she was made to pay a $5,000 Pine for illegally importing 67kg of assorted meat products. According to Singapore law, offenders who are caught repeating the offence of im-

eu compensates as uk pork exports to china slip K pork exports grew 7% in October, compared with a year earlier, reaching 16.6 thousand tonnes. With average unit values comparable to 2016 levels, value was up in line with volume at £23.2 million. According to AHDB analysis, this growth came despite shipments to China declining a noticeable 31% (940 tonnes) year-on-year, falling from the first to fourth largest UK pork export market. This was the first month since June that UK shipments to China had fallen below year earlier levels. Despite Chinese pork imports overall remaining below 2016 since March, demand for UK product had seemed robust. Whether this decline is the first sign of UK product being aﬀected by the Chinese slowdown remains to be seen. However, Rabobank have recently suggested that there could be some recovery in import demand from China in 2018. –CB Report

porting meat products without a licence can be jailed for up to three years and Pined up to $100,000. Yap Teck Chuan, prosecutor of agri food and Veterinary Authority (AVA), said that immigration ofPicers at the Arrival Cargo Clearance

Centre of the Woodlands Checkpoint stopped a Thailand registered pickup truck on 9 December. Two Thai men, including the driver of the vehicle, were found transporting the dried frogs which were hidden among other food products.

Saudi Arabia to slash oil dependence to less than half of budget

audi Arabia, for decades dependent on crude oil to fund its budget, now says it will cut its reliance on the black gold to less than half of total revenues. Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud unveiled the 2018 budget, just hours after the Saudi seat of government, Riyadh’s Yamamah Palace, was targeted by a rebel missile Pired from neighbouring Yemen. Sauid King, addressing his cabinet, said the

kingdom would “continue to decrease its dependence on oil to 50 per cent” of total revenues. The target is 42 per cent by 2023, a Pinance ministry statement later said. The king’s son, Crown Prince Mohammed bin Salman, sat at attention in the audience as the budget was announced. The powerful prince has pegged his rise on an ambitious diversiPication drive, which has also been necessitated by a global slump in oil prices. –CB Report

ccording to the 2017 pharmaceutical industry data and statistics information released by the Korea Pharmaceutical and Bio-Pharma Manufacturers’ Association, Korea exported $3.12 billion (3.39 trillion won) worth pharmaceutical ingredients and Pinished drugs last year, and imported $5.84 billion (6.36 trillion won) worth. Korea’s leading news portal, the Korean Biomedical Review, detailed in its report that South Korean pharmaceutical companies’ largest export destination of raw materials and Pinished products are Japan, while their biggest import source is the United Kingdom. Japan was the largest importer of Korean products. Local drugmakers exported $304.6 million worth of drug materials and $158.1 mil-

lion worth of Pinished drugs to Japan, to a total of $462.8 million. Following Japan’s lead was Croatia that imported $397.8 million in Pinished drugs, and Ireland with $228.8 million drug materials. Many global pharmaceutical giants place their headquarters and factories in Ireland where tax rates are lower than the U.S. The news report further stated that Korea’s top 10 export destinations included China with $208 million in exports ($95.9 million in ingredients, $112 million in Pinished goods), Vietnam with $182 million, Hungary with $135 million, the U.S. with $116.2 million, Brazil with $113.2 million, Germany with $80.9 million, and India with $77.8 million. While Korea exported drugs to both advanced and developing countries, the nation imported drugs mostly from industrial nations. In particular, Korea imported pharmaceutical ingredients and Pinished drugs the most from the U.K, highlighted the agency in its report.

uS setting stage for solar trade

n unreleased White House document offers the strongest hint yet that the Trump administration is laying the groundwork for punitive tariffs on Chinese-made solar power equipment a step that would promote the president’s “America First” trade agenda while sharply increasing the costs of solar power in the U.S. The prospect of such tariffs, which President Donald Trump could announce in January, has deeply alarmed the U.S. solar installation industry. It warns that it could lose tens of thousands of jobs

if the cost of solar spikes, slowing the booming growth that sun-powered energy enjoyed during the Obama administration. But the White House is preparing to argue that trade barriers are needed tofoster solar manufacturing inside the United States, something it calls important to both national security and the economy, according to a document draft obtained by POLITICO. The paper argues that cheap solar imports allow China to unfairly profit from Americans’ use of renewable power and gain influence in the developing world’s energy infrastructure. –CB Report

Brazil decree opens door to Russian wheat imports

BRASILA

cuStoMS BuLLetin RepoRt www.customsbulletin.com

razil’s Ministry of agriculture, livestock and food supply (MAPA) on Dec issued a decree outlining the steps importers will need to take to purchase and unload wheat from Russia. Previously, Russian wheat was not al-

lowed to be processed in Brazil. According to MAPA, the Russian wheat may only be used for consumption, and not as seed. “The International Plant Protection Convention (CIPP) guides countries to take measures that are proportionate to trade,” said Luis Rangel, Brazil’s plant and animal health secretary. “We did risk analysis and feasibility of using this cargo pro-

cessing strategy to meet CIPP standards.” Initially, the only mills and ports that will be allowed to accept the wheat will be located in the north and northeast regions. The goal is to preserve cereal production areas located in the south of the country, MAPA said. Rangel said Brazilian port terminals in Manaus, Ceara and Recife, which are close to the mills that import

wheat from other countries, will receive the first shipments. The port of Santos also has a mill that will be able to receive Russian wheat, he said. “We will register the mills according to the demand of importers from the Department of Plant Protection,” Rangel said. An official list of ports and mills will be published in the Federal Official Gazette.

www.customsbulletin.com

UK issues making tax digital VAT regulations LONDON: The UK tax authority has released draft regulations and a draft explanatory memorandum to introduce changes to the UK VAT regime to require businesses with taxable turnover above the VAT registration threshold to keep and preserve digital records and provide VAT returns using compatible software from April 1, 2019. The changes are necessary to implement the Government’s proposed Making Tax Digital reforms. On July 31, 2017, the Financial Secretary to the Treasury and Paymaster General announced that Making Tax Digital for VAT will come into eﬀect from April 1, 2019. From that date, businesses with a turnover above the VAT threshold (currently GBP85,000, or about USD112,500) will have to: keep their records.

Shipping activity at port Qasim wo ships Genuine Galaxy and Ever Rich-6 carrying 23,500 tonnes Palm oil and 4,490 tonnes LPG took berths at Liquid Cargo Terminal and Engro Vopak Terminal respectively on Wednesday. Meanwhile two more ships Suez Canal and JS Green Star with containers and Chemical also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was managed at the port at fifty three percent on Wednesday where a total nine ships are currently occupying berths to load/offload containers, project cargo, steel coil, Canola seed, LPG, LNG, Palm oil, Mogas and Diesel oil during last 24 hours. Cargo throughput during last 24 hours stood at 108,274 tonnes, comprising 59,455 tonnes import cargo and 48,792 tonnes export cargo inclusive of containerized

Ports & Shipping

Thursday December 28, 2017

Albania’s Durres port boosts Jan-nov cargo traﬃc

china to boost imports for balanced trade hina has vowed to increase imports and cut import tariffs on some products to promote balanced trade as part of its effort to push forward a new pattern of all-round opening up. The country will expand free trade zone pilot areas and guide foreign investors to operate in the country in an efficient way, according to a statement released after the Central Economic Work Conference which concluded Wednesday. The annual conference reviews work from the past year and sets the tone for economic work in the coming year. According to the statement, the country will push for nationwide implementation of a pre-establishment national treatment system as well as a negative list which determines where foreign participation is prohibited or limited. The negative list will become shorter and shorter, it said, adding that the country will improve laws and regulations and enhance protection of intellectual property. At the twice-a-decade congress of the Communist Party of China held in October. –CB Report

DURRES

cuStoMS BuLLetin RepoRt www.customsbulletin.com

lbania’s largest sea port of Durres handled 3.4 million tonnes of cargo in the January-November period, up 7% yearon-year, the port authority said. Cargo exports increased by 16% on the year to 1.242 million tonnes in the period under review, the port authority said in a press release. Cargo imports grew by 3% to 2.157 million tonnes. Cargo ships carried 2.648 million tonnes of goods to and from Durres, up 7% year-on-year, while ferries transported 751.364 tonnes of cargo in the 11 months, up from 674,000 tonnes during the same period in 2016. A total of 518 commercial vessels were handled by goods terminals, while 992 ferries were processed at the ferry terminal, which besides passengers also transports goods by trucks and trains, the port authority said. Hambantota had originally been

opened in 2010, and expanded in 2012, but has struggled to secure significant levels of cargo traffic and the government of Sri Lanka was incurring heavy losses as a result. It is hoped that the agreement will breathe new life into the deepwater port, which is strategically located close to the main shipping trade lanes between Asia and Europe. CMPH has agreed to invest up to US$ 1,120 million into Hambantota port, including US$ 973 million for an 85 per cent stake in Hambantota International Port

Group (HIPG), a subsidiary of the Sri Lankan Port Authority. This money is to be paid in three tranches within 6 months from start of the concession. HIPG will own all port assets and manage day to day operations. It will also be responsible for developing Phase 3, and any further expansion of Hambantota port. Following the first two phases of development, Hambantota has 10 berths with a quay length of around 3500 m, which can handle containers, dry bulk, ro-ro and general cargo.

British exports pick up pace again cargo carried in 2,904 containers (TEUs), (336 TEUs import and 2,568 TEUs exports) was handled at the Port. Four ships Maersk Kensington, Bao Succes, Maistros and AlNuaman sailed out to sea on Thursday Morning, while another ships Zi Jing Song is expected to sea on same day. Four ships, Suez Canal, Pan Ocean, AC-D and Glorious scheduled to load/offload containers, Rice, Chemicals and Diesel are expected to take berths at QICT, MW-2, EVTL and FOTCO respectively on Thursday, while three more containers ships, Hugo Schulte, CCNI Arauco & Prosper and an oil tanker Quetta and LNG carrier Ejnan and LPG carrier Tiamat Gas are due to at Port Qasim. –CB Report

LONDON

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ritish export growth picked up more momentum at the end of the year as the cheap pound continues to boost Pirms selling abroad, according to an index to be published today. The export growth index from accountants BDO increased to a reading of 110.3, far above the 100 mark representing the long-term growth trend.The reading suggests British exports may have accelerated further at the end of the year from strong third-quarter growth. The boost in exports over the course of the last 18 months has been caused by a pick-up in the global economy as well as the continued effects from the dramatic devaluation of the pound since the Brexit vote in June 2016.

Sterling remains almost 11 per cent weaker against the US dollar than levels seen two years ago, allowing some Pirms gain higher margins on products, particularly if their input costs are less exposed to foreign currencies.

The rate of year-on-year growth in export prices has also increased, suggesting UK exporters are pushing up the price of their goods, although higher input costs may also play a role. The BDO figures, based on analysis of data from the Euro-

pean Commission, the Bank of England, and multiple business surveys, show the UK’s exports are growing far faster than comparable European economies, despite their stronger overall GDP growth. Exports across the EU as a whole actually fell below their long-term growth rate, to a reading of 98.8 points, while German growth slowed slightly to record a reading of 101.7. The figures underline the need of the government to secure “open and simple access” to foreign markets, according to Peter Hemington, a BDO partner. He said: “The confidence of our exporters is high as overseas interest continues to increase following last year’s referendum. However, this confidence could quickly disappear as Brexit negotiations continue and a clearer picture develops about our future trade agreements.”

www.customsbulletin.com

PFA seals five outlets Thursday December 28, 2017

Business

RAWALPINDI: The Punjab Food Authority (PFA) in its ongoing drive of checking food outlets inspected various sites and ﬁve outlets were sealed for not making proper cleanliness arrangements in Rawalpindi and Murree areas. The Departments spokesman told media that PFA sealed three restaurants and one milk shop in Murree while one renowned bakery was sealed in Commercial market area of the city for not ensuring hygine and cleanliness.

nAB to file reference against Sharif family ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he National Accountability Bureau (NAB) is likely to Pile a supplementary reference in the AvenPiled Apartments’ case against the Sharif family early January next year. The NAB team that visited the United Kingdom this month might not have returned with any substantial evidence but they had recorded the statements of two important witnesses in London and based on those statements, a supplementary reference is likely to be Piled in the Pirst half of January 2018, well-placed sources said. A team of the NAB reached Lon-

Six lawmakers yet to file property tax ISLAMABAD

cuStoMS BuLLetin RepoRt

don on December 12 to meet the Home OfPice ofPicials in relation to the AvenPield Plats owned by Hasan and Hussain Nawaz and returned on December 19. The sources said that the NAB team had recorded the

Mobile phone prices increase after decline in imports

www.customsbulletin.com

t least six parliamentarians including a minister, four senators and one member of National Assembly have been found defaulters of property tax. Parliamentarians who are avoiding property tax are State Minister for Capital Administration and Development Division (CA&DD) Dr Tariq Fazal Chaudhry, MNA Ibadullah Khan and Senator Nuzhat Sadiq of Pakistan Muslim League-Nawaz (PML-N), Senator Haji Saifullah Khan and Senator Islamuddin Shaikh of Pakistan People’s Party (PPP).

statement of one, Akhtar Raja of Quist Law Firm, a loss-making law Pirm in the UK. Raja happens to be cousin of JIT’s head Wajid Zia who hired him to work for the JIT in the UK. Raja was paid a hefty amount by

the JIT. The sources said that Akhtar Raja had endorsed what the JIT had attributed to him. Secondly, NAB investigators have also taken the statement of Robert W Radley of Radley Forensic Document Laboratory as he was hired by the JIT to examine the documents presented by the Sharif family regarding the AvenPiled Apartments, the sources added. Radley had identiPied that the type of font used in the trust deed declarations was ‘Calibri’. However, the font was not commercially available before Jan 31, 2007 and as such, neither of the documents is correctly dated and appear to have been created at some later point in time. The sources said that Radley too has endorsed what he had given in writing to the JIT regarding the Calibri font controversy.

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he mobile phones prices have increased as imports of handset declined after the government’s anti-smuggling measures. Mobile phone imports decreased while prices of feature phones rose up to 70% in November. Cell-phone imports declined to $58 million in November 2017 from $65 million in the same period of previous year, according to the Pakistan Bureau of Statistics (PBS).

The government has taken strict measures to curtail smuggling of mobile phones. Last month, the Pakistan Customs raided a bungalow in Karachi’s Defence Housing Authority and seized over 80,000 smuggled cellphones worth Rs350 million. Market sources estimate that handsets worth $10 million are smuggled into the country, causing a huge loss to the government revenue. In midOctober of the current year, the Federal Board of Revenue (FBR) imposed a duty of Rs250 on mobile phones worth Rs15,000 or more while Rs300 was levied on cheaper

handsets worth Rs6,000 or more. “Extra taxes have discouraged importers from bringing the handsets,” remarked Karachi Electronic Dealers Association former general secretary Rasheed Noorani. Government’s efforts to control smuggling are a step in the right direction, but they come at a high cost for the consumers looking to purchase feature phones. VGO Tel i700 initially cost Rs2,200 but its price has increased to Rs2,700, QMobile’s E4 price has increased from Rs2,500 to Rs3,300 while VGO Tel i251 price has gone up from Rs1,900 to Rs2,400.

govt takes record $40 billion loans in four years ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he government has taken record foreign loans of $40 billion during its four-andhalf-year tenure. Pakistan has taken loans from all available options, including commercial banks and International Monetary Fund (IMF), and through issuing bonds in international market, according to the official documents. Pakistan had borrowed $13.38 billion from the multilateral, $5.048 billion from bilateral, $6.7 billion from the commercial banks and $6.4 billion from the IMF by the end of September 2017. Similarly, the government has issued $6.5 billion Sukuk and Euro bonds in the international capital market during the last four years. Later, the government borrowed $1.24 billion loan from external sources during October and November this year. Similarly, the volume of domestic debt has also recorded a massive increase in the last four and half years. Net domestic debt stock had gone up to Rs13,510 billion by the end of September 2017 as against Rs8,686 billion in June 2013 when the incumbent government took charge, showing an increase of Rs4,824 billion.

Large Scale Manufacturing grows 9.64 percent in 4 months ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he country’s large scale manufacturing (LSM) sector has witnessed growth of 9.64 percent during July-October 2017-18 as compared to the corresponding period of last year. The Quantum Index Numbers (QIM) of large scale manufacturing industries was recorded at 135.95 points during July-Octo-

ber 2017 against 123.99 points during same period of last year, according to the latest data of Pakistan Bureau of Statistics (PBS). The highest growth of 5.9 percent was witnessed in the indices monitored by ministry of industries followed by Provincial Bureaus of Statistics (PBOS) with 2.69 percent and the indices of Oil Companies Advisory Committee (OCAC) with 1.06 percent. On year-on-year and month-on-month basis, the in-

dustrial output increased by 8.77 percent in October 2017 as compared to October 2016 while it increased by 5.59 per cent when compared to July 2017. Meanwhile, the major sectors that showed growth during four months of current fiscal year as compared to same period of the previous year, included textile (0.70 percent), food, beverages and tobacco (14.24 percent), coke and petroleum products (15.67 percent), pharmaceu-

ticals (2.93 percent), non metallic mineral products (13.03 percent), chemicals (2.29 percent), automobiles (28.4 percent), iron and steel products (44.39 percent), electronics (65.03 per cent), paper and board (7.56 percent), engineering products (15.29 per cent), rubber products (4.14 percent), and wood products (1.37 percent). On the other hand, the industries that witnessed negative growth included fertilizers indus-

try with a decline of 9.84 per cent, and leather products with negative growth of 2.72 per cent. The provisional QIM is being computed on the basis of the latest production data of 112 items received from sources including OCAC, Ministry of Industries and Production (MoIP) and Provincial Bureaus of Statistics (PBoS). OCAC provides data of 11 items, MoIP of 36 items while PBoS proved data of remaining 65 items.

www.customsbulletin.com

UBG confident of victory in FPCCI elections KARACHI: United Business Group (UBG) claimed to have clean sweep for fourth consecutive time in the annual elections of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), scheduled to be held on December 29. “We are very prepared to sweep the FPCCI elections. Opponents shall get nothing but shall regret over the adventure,” remarked Patron-in-Chief of UBG and former president FPCCI, S.M. Muneer while talking to a group of reporters here. FPCCI President Zubair F.Tufail, former vice president and Spokesman of UBG Gulzar Feroz, former vice president and In-charge UBG Election Cell, Muhammad Hanif Gohar, Shakil Ahmed Dhingra and Candidate for Senior Vice President Syed Mazhar Ali Nasir, senior business leader Dr. Mirza Ikhtiar Baig, candidates for vice president oﬃces Tariq Haleem, Waheed Ahmed, Ms.Shabnam were also present.

need stressed for promoting pak-uzbek bilateral trade

Thursday December 28, 2017

Chambers

temuri assures to resolve traders issues through community policing

RAWALPINDI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ladimir Norov, Director, Institute for Strategic and Regional Studies of Uzbekistan along with H.E. Furqat A. Sidikov, Ambassador of Uzbekistan to Pakistan visited Islamabad Chamber of Commerce and Industry and addressing the business community, stressed that Pakistan and Uzbekistan should focus on exploiting their geographical proximity for promoting bilateral trade and economic relations to achieve mutually beneficial outcomes for their economies. Maj. Gen. (Retd) Khalid Amir Jaﬀery, President. Center for Global and Strategic Studies of Pakistan also accompanied them. Vladimir Norov said that Uzbek-

istan had US$ 520 million bilateral trade with Afghanistan and our target was to take it to US$ 1 billion. However, with Pakistan its trade was just around US$ 24 million despite the fact that both countries have great potential to promote trade in many areas. He urged that Pakistan and Uzbekistan should accord high priority to improving two-way trade that would bring many benefits to the people of two nations. He said Pakistan and Uzbekistan could cooperate in many fields including textiles, agriculture, energy, automobiles, pharmaceuticals, chemicals and others. He said Uzbekistan has established 7 Free Economic Zones with attractive incentives for foreign investors and has envisaged 650 projects involving an investment of US$40 billion. He emphasized that Pakistani investors should explore joint ventures and investment opportunities in Uzbekistan.

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

r. Sultan Azam Temuri, Inspector General of Islamabad Police said that a community policing model was being developed to make Islamabad Police a model of excellence and assured that the business community would be involved in this model that would help in resolving their key issues. He said the community policing was his top priority and all segments of society including business community, senior citizens, students, housewives etc. would be engaged to introduce a community-police partnership model for resolving police related issues of the citizens. He said this while talking to a delegation of Islamabad Chamber of Commerce and Industry that called on him led by Sheikh Amir Waheed, President and congratulated him on his appointment as IG Police, ICT. Sultan Temuri said that Reconciliation Committees at Police Stations level would be reactivated with the representation of business community. He said formation of

CPLC would also be considered to improve law and order situation in partnership with citizens. Commenting on Dharna culture, he said an anti-riot force was being developed to cope with such issues. He said smart pickets would be set up to streamline the trafPic Plow. He said safe city project would be further improved and all faulty security cameras would be set right to improve security situation in the markets and the city. He said challans would also be issued through camera monitoring on violation of trafPic rules. He said FIR system in police stations would also be

improved. He said a comprehensive plan has been developed to improve the performance of police and its results would be seen in weeks. He said that the new plan would be shared with business community during his visit to ICCI and assured that all required efforts would be made to address key issues of business community to facilitate it in growth of business activities. Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry highlighted the various issues of business community that needed better attention of the ICT Police

‘pakistan’s debt servicing ability compromised’ ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Businessmen Panel of the FPCCI said debt servicing has become impossible for the government therefore it must take new loans to repay loans otherwise country may face a default. The process must not be delayed as it will have a negative impact on the economy which is already facing many troubles including twin deficit. The economy needs cash which is fast disappearing, therefore, the government should try to get a loan from friendly countries or the institutions which did not attack tough conditions to the loans, it said. The government should keep the loan from the IMF as a last option and negotiate it in a way to keep economy and masses

from the notorious condition of the lender, said Naseem-Ur-Rehman, a central leader of the BMP. He said that Pakistan must service debts which will require billions of dollars otherwise it would be declared a defaulted country which we cannot afford as it will result in the excessive printing of money which will skyrocket the inPlation. The business leader said that country is facing the problem of cash Plow which is necessary for rapid development; therefore, urgent steps should be taken. Meanwhile, United Business Group (UBG) on Thursday claimed to have clean sweep for fourth consecutive time in the annual elections of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), scheduled to be held on December 29. We are very prepared to sweep the FPCCI elections. Opponents

shall get nothing but shall regret over the adventure,” remarked Patron-in-Chief of UBG and former president FPCCI, S.M. Muneer while talking to a group of reporters here. FPCCI President Zubair F.Tufail, former vice president and Spokesman of UBG Gulzar Feroz, former vice president and In-charge UBG Election Cell, Muhammad Hanif Gohar, Shakil Ahmed Dhingra and Candidate for Senior Vice President Syed Mazhar Ali Nasir, senior business leader Dr. Mirza Ikhtiar Baig, candidates for vice president ofPices Tariq Haleem, Waheed Ahmed, Ms.Shabnam were also present. S.M.Muneer said under his leadership and that of Chairman UBG and former president FPCCI Iftikhar Ali Malik, their group had delivered to its best for promotion of trade and industry, and for the economic prosperity and development of the country.

Chief. He said Reconciliation Committees should be set up with representation of business community to resolve issues with joint efforts. He said a CPLC in Islamabad should be developed on the model of Karachi CPLC that had proved effective in resolving issues of citizens. He said Dharna culture should be discouraged and a separate place should be earmarked for such activities as business community of twin cities have badly suffered due to Dharnas. He said FIRs in police stations should be registered by taking both parties on board as one sided approach was creating many problems.

govt to award industry status to furniture sector PCCI President Zubair Tufail said the government needs to take several steps like providing fiscal support for skills training and upgradation of machines with a view to boost labour intensive furniture sector besides awarding industry status to this sector for boosting export. Talking to a delegation of Pakistan Furniture Council (PFC) led by its Chief Executive Mian Kashif Ashfaq at FPCCI regional chamber, FPCCI President Zubair Tufail said that local furniture sector attached great importance to national economy and could make a substantial contribution of billions of dollars export annually if government properly patronizes it on priority for boosting export of Pak-handmade furniture. –CB Report

www.customsbulletin.com

ASO impounds smuggling items & smuggled vehicles ISLAMABAD: The Anti-Smuggling Organization Islamabad took into possession smuggling goods and smuggled vehicles worth Rs9.2million during 2nd week of December Fiscal Year 2017-18. According to details given by Majid Hussain Gadd, Assistant Collector, Anti-Smuggling Organization (ASO) Islamabad, that, during above said period, the ASO impounded four oﬀending vehicles (vehicles carrying smuggling goods) valued at Rs5.00million.

Thursday, December 28, 2017

CUSTOMS BULLETIN

customs export recovers evaded tax of Rs 6.51 million from two companies KARACHI wAQAR AHMeD AnSARi www.customsbulletin.com

he Customs Export has recovered evaded taxes and duties amounting to Rs 6.51 million from defaulter companies which were issued notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Ashfaq Hosiery Karachi availed undue benefits and concessions by importing different consignments and misusing the SRO 566. The company was allegedly involved in tax evasion of Rs 4.23 million. After detecting the tax evasion, the Customs Export issued them a final notice on December 4, 2017 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/ Ashfaq Hosiery Karachi deposited the evaded amount in the official account of the Customs Export on December 14, These consignment cleared by PICT through Examiner Touseef Ahmed. On the other hand, the management of the M/s Shah Gul Associates Karachi also cleared

Rs2.28 million of taxes and duties. Sources told that M/s Shah Gul Associates Karachi also availed un-

due benefits and concessions and avoided paying taxes according to the customs bylaws. The Customs

Export authorities issued them with a final notice on November 30, 2017. After receiving the no-

tice, the management of the Shah Gul Associates Karachi deposited the evaded amount of taxes.

Anf registers 1,063 cases, arrests 1,204 drug traﬃckers in 2017 RAWALPINDI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

nti-Narcotics Force (ANF) registered 1,063 cases and 1,204 persons involved in drug smuggling were sent behind the bars during 2017. According to an ANF spokesman, during 2017, ANF seized 31811.85kg opium, 7132.2kg morphine, 19568.615kg heroin, 100436.353kg hashish,

386.149kg cocaine, 1881.901kg amphetamine, 35.893kg methamphetamine, 22.768kg ecstasy tablets, 13.805kg xanax tablets, 9.413kg diazepam tablets, 73.5kg prazolam tablets, 57.027kg cannabis and precursor chemical comprising 917.5liter acetic anhydride, 50594.8liter sulfuric acid, 4130 liter hydrochloric acid and 715 liter acetone. During 2017, out of 786 decided cases, 753 cases met conviction, making 96% successful conviction rate. This year ANF frozen assets worth Rs 933.42 million, out of which Rs 21.14 million has

been forfeited and Rs 0.582 million realized. During the year, ANF has also undertaken 332 drug abuse prevention and awareness raising activities throughout the country. Talking about drug treatment facilities, he apprised that in addition to existing 145 bedded Drug Treatment Facilities at Islamabad, Quetta and Karachi, ANF is expanding this facility to 178 more beds at Karachi, Sukkur and Peshawar including establishment of 48 bedded female and juvenile Drug Treatment Ward within existing MATRC Karachi. He apprised that ANF has pro-

vided free drug treatment to 697 drug addicts at its Drug Treatment Centers in year 2017. He also highlighted the up-gradation of ANF Balochistan in respect of deployment, intelligence ability, technical capability and mobility with special focus on Gawadar in view of the CPEC. ANF is striving for drugs absolute elimination to achieve the goal of Drug Free Society, he said adding that ANF is vigorously executing its assigned tasks with utmost dedication and determination. This year, 1.805 Metric Tons of narcotics were burnt here while ANF burnt a total of 135.064 Metric Tons

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

of drugs valuing Rs3951 million at Lahore, Peshawar and Karachi. The force is continuously launching “Anti-Drug Drives” in major cities, with special focus on educational institutions. Director General, ANF, Major General Musarrat Nawaz, Chairman, Inter Agency Task Force (IATF) chairing a meeting held here the other day reviewed performance of Law Enforcement Agencies (LEAs). The meeting was attended by FBR, Pakistan Coast Guards, FIA, FATA Secretariat, Pakistan Rangers, Punjab, Pakistan Rangers, Sindh, Frontier Corps, KPK, Frontier Corps, Baluchistan.