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S R KHAN

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irector General of Directorate General of Internal Audit-Customs Dr Owais Agha Jawwad has called a meeting of the ofOicers in order to review the performance of the directorate during the entire year of 2016. The meeting was attended by Director Internal Audit-Customs Imtiaz Ahmed and other senior ofOicers of the Directorate General. During the meeting, the director general was briefed on the performance of the

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directorate during the year. Briefing the meeting, Director-Internal Audit Imtiaz Ahmed said that the department has constituted and established audit-paras of around Rs 1,800 million. “Auditparas related to the cleared consignments of steel, plastic, autoparts, chemicals and pharmaceuticals are included which have been prepared and sent to the respective collectorates for further settlements,” the director said. Ahmed also said that most of the audit-paras were being prepared in the cleared consignments of steel pallets, adding that around that the auditparas of Rs 950 million related to the consignments of steel pallets were established.

Valuation DG issues Order in Revision No 278/2016 against VR No 903/2016

GB Customs collects Rs 307.741m during first 21 days of December

Govt committed to alleviate poverty: Marvi Memon

Customs Central Region posts 6pc growth in duty, taxes in November

Customs North Region collects Rs 685.83m sales tax till December 19

ValuationDGSyedTanveerissuesOrderin RevisionNo.278/2016undersection25-D | See pAge 02 |

Customs Collectorate Gilgit Baltistan collectedRs307.741millionunderthehead | See pAge 03 |

Benazir Income Support Programme BISP Chairperson Marvi has said that poverty | See pAge 04 |

TheCustomsCentralRegionhascollectedRs 14,218mdutyandtaxesduringthemonth | See pAge 14 |

Customs North Region collected Rs 685.83 million from December 1 to 19 | See pAge 16 |

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Customs authorities at BKIP collects Rs 6.56m in first 15 days of Dec Saturday, December 31, 2016

National

ISLAMABAD: Customs authorities at Bacha Khan International Airport Peshawar (BKIAP) collected Rs6.56 million revenue under the head of duty/taxes during first 15 days of December of financial year (FY) 2016-17.

Sources told Customs Today that Peshawar Customs performance regarding collection of all duty/taxes was satisfactory. Sources added that during above said period Peshawar Customs collected Rs4 million under the head of customs duty. During first 15 day of current month, the BKIAP collected Rs0.30 million in the wake of various duty and taxes, adding that the customs officials at the airport collected Rs.0.35 million revenue.

Valuation Dg issues order in Revision No 278/2016 against VR No 903/2016

LAHORE

KARACHI

m HAYAt

BuBeeN HuSSAiN

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irectorate of Post Clarence Audit has detected Rs 169183 tax evasion by M/s Ibrahim international Gulberg 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 their principal activity of manufacturer of pesticide and other agro chemicals are involved in the evasion of duties and tax during customs clearance of zinc sulphate 33 percent which are classified 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 Ibrahim international, Gulberg Lahore has imported two consignment of the aforesaid impugned goods which were prima facie are fertilizers and as such not entitled for the exemption of customs duty and sales tax under the said SSROs cleared from MCC Appraisement Karachi (West) and MCC Multan during calendar year 2014.

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irector General Customs Valuation Syed Tanveer Ahmed issues Order in Revision No. 278/2016 under section 25-D of the Customs Act, 1969 against Valuation Ruling No.903/2016 dated 09-08-2016 the revision petition was Oiled by M/s Home Plus Pvt. Ltd & Others.

The petitioner stated that the Director of Customs Valuation has determined the customs value of household appliances vide valuation ruling no.903/2016 (Misc/04/2006VII (part-I)) dated 9.8.2016 in conOlict with the principles of law enunciated by the Supreme Court of Pakistan in its landmark judgment in the case of Collector of Port Muhammad Bin Qasim V/S Zymotic Diagnostic International, Faisalabad, 2008 SCMR 438 in which the Supreme Court of Pakistan has dismissed the petition for leave to appeal Oiled by Collector of Customs, Port Qasim, Karachi Petitioner also said that being seriously aggrieved with the valuation ruling no.903/2016 (Misc/04/2006-VII (Part-I)) dated 09.08.2016 passed by the learned Director of Customs Valuation in respect of household appliances of PCT Headings 8508, 8509, 8516 & 8543, which we disagree being harsh, unlawful and ultra-vires to the Customs Act, 1969, if we may say with enor-

pcA detects Rs 169,183 tax evasion by m/s ibrahim int’l

mous respect. We, therefore, opt for the remedy by Oiling this revision petition under Section 25D of the Customs Act, 1969. Director General Customs Valuation in his order said that in pursuance of high court order in March 2016 the Directorate General Customs Valuation re-determined the customs values a fresh and instead of considering their submissions made at the time of meeting held in this regard. Keeping in

view the Submissions made by the petitioners, respondent department reply, and market enquiry conducted, the ‘A’ ‘B’ and C categories of the house hold appliances are rationalized and the applicable customs values for A” category appliances are redetermined under Section 25A(3) read with Section 2.5D of the Customs Act, 1969. Meanwhile, Director General Customs Valuation Syed Tanveer Ahmed has issued Order-in-

Revision No. 273/2016 under section 25-D of the Customs Act, 1969 against Valuation Ruling No. 931/2016, pertaining to sub-meters, issued on September 21, 2016. The revision petition was Oiled by M/s MAS Enterprises. The petitioner stated that the values given in valuation ruling are exaggerated, grossly overvalued and without any substantial support / proof, which are badly affecting commercial interests.

Kp govt decides to document all non-customs paid vehicles T

PESHAWAR

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he Khyber Pakhtunkhwa government has decided to document all non-customs paid vehicles for the purpose of security and to develop a data bank of all vehicles with proper number plates and registered with the relevant police stations. This was decided during a meeting chaired by Chief Minister Pervez Khattak. The meeting was also

attended by Minister Excise Mian Jamsheddin, Customs Collector, Commission-Income Tax, administrative secretaries, Commissioner Malakand, RPO and others. The meeting had a threadbare discussion on the data bank of the non-customs paid vehicles and different issues of Swat Cantonment, road communication network and other allied issues of Malakand Division. The documentation of all non-customs paid vehicles will discourage the stolen vehicles and use of these vehicles in crimes

and terrorism etc. The owners would not be charged nor they would pay and would be facilitated without any fee. The participant also agreed to develop a data bank of the all vehicles with proper number plates and registered with the relevant police stations. The owners would only be given a token for number plate and the owner would then prepare a number plate so that the misuse and abuse of vehicle could be discouraged.The chief minister directed for a transparent mechanism discourag-

ing the misuse, abuse and smuggling of such vehicles. The provincial government, he added, would provide all out support to the mechanism for developing a data bank of all the vehicles to be registered in the relevant police stations. The mechanism would have a representation of the excise, customs, police etc. He said his government had already planned six to eight scenic spots in the entire Malakand Division that would be developed on tourism lines. The meeting was told that Lowari Tunnel

would be ready for transportation by June 2017. The chief Minister directed to develop Lowari Top and other identiOied scenic spots on tourism lines. “We have to exploit tourism potentials of Malakand Division. We have to plan how to develop these spots for attracting maximum tourists thus boosting the tourism industry in Malakand division.” This, he added, would enhance the local economy, would generate maximum jobs and would lead to the overall development of the area.

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Customs to use WeBOC at airports to curb smuggling, money laundering KARACHI: The Pakistan Customs has decided to use WeBOC software to keep the data of air passengers and check the suspects involved in drug smuggling and money laundering. The WeBOC will play a vital role in monitoring the passengers. The software is 100 percent result oriented and is also appreciated in foreign countries.

The Customs authorities have also established new counters at the international arrival and departure lounges where passengers will be making their declaration as per the rules of the State Bank of Pakistan to collect the data of the travelers and ascertain the purpose of their visit.

faisalabad customs intelligence seizes smuggled items worth Rs 16.720m

Saturday December 31, 2016

National

gB customs collects Rs 307.741m during first 21 days of December

FAISALABAD

NAeem SHeiKH

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he Directorate of Customs Intelligence and Investigation seized smuggled goods worth Rs 16.720 million involved in duty/taxes of Rs3.364 million besides impounded offending vehicles worth Rs600,000 in different anti-smuggling activities during the third week of December 2016. Customs official told Customs Today that the customs intelligence conducted operations on the instruction of Deputy Director Muhammad Riaz Hussain against the smuggled goods and vehicles in different areas of its jurisdiction, included Sargodha, Khushab and Faisalabad.

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Dar, Nisar discuss problems in filing tax returns, iRiS KARACHI

S R KHAN

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ederal Finance Ishaq Dar Minister has called on Federal Board of Revenue (FBR) Chairman Nisar Mohammad Khan and discussed issues being faced by the business community in connection with filing of their income tax returns for the year 2016-17. Dar also inquired about the status of tax returns during the current fiscal year and performance of the Integrated Revenue Information System (IRIS) in filing the returns.

The chairman briefed the federal minister about the efforts being made by the customs authorities to improve the working of IRIS. He said that the system has been successfully working for the last one and an half months, adding that the taxpayers are taking full advantage of the system.

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ISLAMABAD

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ustoms Collectorate Gilgit Baltistan collected Rs307.741 million under the head of all duty taxes during Oirst 21 days of December Oinancial year (FY) 2016-17.

According to details told by Assistant Collector Akbar Jan that performance of Collectorate of GB was outstanding during Oirst 21 days of December. He said that during above said period the Collectorate of GB collected Rs.121.590 million under head of customs duty and also collected revenue Rs.15.012 million under head of regulatory duty (RD). The assistant collector told that till 21st December the GB collected revenue of Rs.1.273 million under head of redemption Oine as far as the GB collected revenue of Rs.137.875 million under head of total customs duty.

He said that GB collected revenue of Rs.98.844 million under head of sales tax during 21 days of December FY16-17 adding that GB collected revenue of Rs.17.172 million under head of additional sales tax.

Akbar Jan said that during above said period Gigit Baltistan collected revenue of Rs.116.016 million under head of total sales tax adding that GB collected revenue of Rs.53.850 million under head of income tax during 21 days of December FY16-17. He said that under the guidance of Chief Collector North Sarwat Tahira Habib the Collectorate is working perfectly

adding that the GB will not only meet its assigned target of month of December but also will surpass the assigned revenue collection target for said month. Meanwhile, The Customs Collectorate Gilgit Baltistan (GB) collected revenue during month of November Oinancial year (FY) 2016-17 under head of all duty taxes amounting Rs.450.212 million against the given target for same month was amounting Rs.224.5 million while GB collected revenue under head of all

He said that during above said period the collectorate of gB collected Rs.121.590 million under head of customs duty and also collected revenue Rs.15.012 million under head of regulatory duty (RD). the assistant collector told that till 21st December the gB collected revenue of Rs.1.273 million

customs bags Rs 968,000 through auction

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FAISALABAD

NAeem SHeiKH

www.customsbulletin.com he Directorate of Customs Intelligence and Investigation (I&I), regional ofOice auction committee has conducted auction of seized smuggled vehicles and others different goods after permission of Federal Board of Revenue (FBR) and generated revenue of Rs 968,000 during the month of November. The chairman of auction committee Muhammad Riaz told

Customs Today that various parties participated in the bid of auction but only one party gave attracted prices.

He said that during different anti smuggling activities Customs Intelligence has seized smuggled items under the transit trade road from GT Road, M1, M2, M3 Faisalabad, Sargodha and Sumandri and shifted the same to State Warehouse.

The intelligence authority has registered the cases of seized goods and referred the cases to the adjudication department for proceeding.

After conclusion of proceeding of case the court announced judgment in the favor of Customs Intelligence and Investigation Faisalabad.

It is necessary to mention here that Customs intelligence is already expedited their efforts to generate more revenue to meet the assigned target of current Fiscal Year 201617. The auction was held at Customs Intelligence an Investigation ofOice situated in Amin Town Canal Road.

Faisalabad Deputy Director Muhammad Riaz supervised the auction.

duty taxes amounting of Rs.1826.26 million during Oirst Oive months of current FY2016-17. According to details told by Assistant Collector Gilgit Baltistan Akbar Jan during an exclusive interview to Customs Today hear, he said that GB will follow Strict and speedy examination and clearance during this Oinancial year 2016-17, the GB is following these measures because it want to maintained the performance of 2nd quarter (October to December FY16-17).

Sc accepts Ayyan’s plea for urgent hearing upreme Court has accepted an application of model Ayyan Ali for preferably hearing a plea seeking lifting ban on her travel. A three-member bench, headed by Justice Saqib Nisar will start hearing of plea from Thursday. Earlier, the apex court had rejected a similar plea by model. Ayyan Ali also submitted an order of SHC and other documents regarding her inclusion in the investigation.

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Shehbaz for fair utilisation of development funds LAHORE: Chief Minister Muhammad Shehbaz Sharif has said additional funds would be given to the local governments showing good performance in education, public health and other sectors for their encouragement.

He stated this while presiding over a meeting held to review recommendations with regard to distribution of resources among provincial governments through Provincial Finance Commission.

The chief minister said development of south Punjab and backward districts was among priorities of the government.

Saturday December 31, 2016

Business

‘govt committed to alleviating poverty’ LAHORE

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inister of State and Benazir Income Support Programme (BISP) Chairperson Marvi Memon has said that poverty alleviation is one of the top priorities of the present regime and BISP’s role is important in this regard. While talking to LCCI Vice President Muhammad Nasir Hameed Khan, Marvi said that the federal government is working a number of development programmes that would bring change in the lives of people.

She also highlighted economic growth of the country and also shared many economic milestones achieved by the

SNgpL earns Rs 1.3 billion profit KARACHI

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ui Northern Gas Pipe Lines Limited (SNGPL) has earned profit after tax of Rs 1,399 million during the period from July to September 2016. The company witnessed a loss before tax of Rs 776 million and loss after tax of Rs 543 million during last year of corresponding period. The earning per share for the period is Rs 2.21 as against loss per share of Re. 0.86 for the period ended September 30, 2015. Before and after tax profit declared by the Company for the July-September.

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present government. The minister said that Benazir Income Support Fund is one of the largest social wel-

fare programmes around the globe.

She said that within a short span of time, BISP has achieved what many

organisations and programmes have not achieved in decades. She said that BSIP is set to seal top position in the world as it has adopted modern technologies to ensure transparency. She said that comprehensive conceptual framework of BISP, supported by the state of the art technology and international best practices, makes it the most transparent and credible social safety system, not only in the country but in the world as well. She said that considering the transparency and efOiciency of the programme, multilateral Oinancial institutions and international donors are providing both technical and Oinancial support to BISP. “At present, BISP is rated among the best social safety net programmes of the world and grown at an impressive pace with the number of beneOiciaries increasing”, she added.

eu gives $4.5 million for drought-hit areas of Sindh T

ISLAMABAD

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he European Union has contributed critical funds to enable livelihoods and nutrition programme run by United Nations World Food Programme (WFP) to continue in the hardest-hit drought areas of Sindh. According to press release, the contribution of really $4.5 million from the European Commission Humanitarian aid and Civil Protection Department (ECHO) is being used to assist the recovery

and stabilization of people affected by food insecurity and drought. The funds will also help provide nutrition support thus preventing further deterioration as well as develop households capacity to strengthen their economic recovery.

The most vulnerable household in terms of malnutrition and livestock/yields losses, are being prioritized”, said Country Director Finbarr Curran.” We know that in some areas 37 percent of deaths recorded were childern.100 percent household experienced moderate drought 83.8 percent faced extreme water

sanctity and 27.7 percent do not have access to safe water sources Life saving nutrition activities in Sindh focus on community Management for Acute Malnutrition and Infant Young Child Feeding using specialized nutritious products.

Treatment is provided to around 1,9000 moderate cute malnourished children of 6-59 months and 18,000 acutely malnourished pregnant and nursing women. Activities also include improving the behaviour and practise of those caring for young children.

Admore achieves 461% volume growth in 2016 KARACHI

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dmore Gas, a local oil marketing company has claimed to have achieved a 461 % volume growth during 2016, from 31,000 metric tons in 2015 to 174,000 metric in 2016. Admore CEO Nadeem Jafarey in a press conference here Thursday said the company has successfully executed it planned turn around during 2016 through upgradation of existing storages, construction of new storage facilities and improved financial management. The set targets were said to be also accomplished through induction of highly qualified and experienced staff, optimization and development of retail outlet network and the supply chain. “The company undertook major capital expenditure to comprehensively build its storage capacity in the North and South regions of the country,”he said. Admore Gas (Private) was also said to had paid close to Rs.one billion, in less than a year, out of total defaulted legacy liabilities of Rs. two billion, thereby clearing half of its financial liabilities. Nadeem Jafarey said the Company undertook major capital expenditure to comprehensively build its storage capacity in the North and South regions of the country besides extensively upgrading its Machike storage terminal in Punjab and currently building its storage facility at Daulatpur.

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Huawei Honor set on rewriting smartphone industry in 2017 LAHORE

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he world’s number one smartphone e-brand from Huawei, has recorded solid growth over 2016 and has established itself as a truly global player in the smartphone industry in just 3 years. Underpinned by an unwavering commitment to innovation and quality, Honor’s footprint has increased con-

siderably in the space of just 3 years to span 74 different countries and regions to this day, with sales revenues topping US$6 billion and 40 million units shipped globally in 2015. In 2016, it witnessed record sales across its range of technologypacked devices, solidifying Honor’s position as a leading global smartphone brand. The brand’s third-year anniversary caps another successful year for the millennial-centric brand as it continues its drive for innova-

tion, and will kick the New Year off with exciting news that will propel the smartphone success story to a higher standard within the industry in 2017. This past year has been a triumph for Honor, starting with the launch of the street smart honor 5X. The Olagship device scooped an impressive seven accolades including ‘Top Pick for CES 2016’ by Android Central and featured in the Top 10 smartphones that ‘stole the show’ by CRN.com.

In August 2016, Honor broke sales records at multiple retail shows such as Gitex with the launch of its Olagship beauty: the Honor 8.This device offers even more value to the end user: It has phenomenal aesthetic appeal, boasting a carefully polished 15-layer craftsmanship; a 12 MP dual camera with one RGB and one monochrome sensor,as well as the Smart Key function that allows users to access Instagram with a single click and double-click

for Twitterat an astonishing price of PKR 48,499. Mr Blueking, the country manager of Pakistan commented: “2017 is going to be an exciting year for Honor. We are showing our users that premium quality is now within their reach.We see great potential for our brand in Pakistan due to the surge in the number of digital natives and high incidence of early adopters that impact the way in which we approach this complex market.

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Saturday, December 31, 2016

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ISLAMABAD

m ARSHAD

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hairman Federal Board of Revenue (FBR) Nisar Muhammad Khan, said that banks would have to share data and information about the account holders after Pakistan signs agreement with the Organization for Economic Co-operation and Development (OECD). Due course on debate in the Senate Finance and Revenue Committee, State Bank of Pakistan (SBP) representatives were of the viewpoint that banks were ready to share information of account holders with tax authorities but not ready to share data of account holders beyond information. “Once, we sign agreement with OECD, all the banks will be bound to share data of account holders not only with FBR but also the tax authorities of OECD member countries” Nisar Muhammad Khan said in a brief chat with reporters after the meeting of the Senate Standing Committee on Finance and Revenue. OECD is an Intergovernmental economic organization and it is a forum of countries describing themselves as commit-

ted to democracy and the market economy, providing a platform to compare policy experiences, seeking answers to common problems, identify good practices and coordinate domestic and international policies of its members. Most OECD members are high income economies with a very high Human Development Index (HDI) and are regarded as developed countries. Nisar Muhammad Khan went on saying that presently, Banks were reluctant in sharing the information related to funds transactions made by the account holders with tax authorities

and this reluctance hampered the tax collectors’ successful operations in nabbing the tax defaulters. According to FBR Member Dr. Muhammad Iqbal, OECD members could culminate in formal agreements by countries, for example on combating bribery, on arrangements for export credits, or on the treatment of capital movements. Similarly, member countries can produce standards and models for the application of bilateral treaties on taxation, or recommendations, for example on cross-border co-operation in enforcing laws against spam.

They may also result in guidelines, for example on corporate governance or environmental practices” he added.

ate e Sen h t n i State bate ttee, on de i e m s r m u es o co Due c enue ntativ v e s e e R r rep re ce and (SBp) ks we n n finan a a t b s i t nt t tha of pak accou wpoin Bank f e o i v n e atio ot of th inform ities but n were e r a h to s thor lders ready tax au nt ho h u t i o c w c rs of a holde e data r on a h s rmati to o y f d n i a e d r beyon

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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

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enhancement of direct taxes

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ccording to newspaper reports, the government is ready to put all its weight on the tax collection authorities on the federal and provincial levels to enhance its revenue collections. Finance Minister Ishaq Dar has held a meeting with senior officials of the Federal Board of Revenue to prepare a comprehensive plan to increase the rates of direct taxes from the next fiscal year. It is good omen that the government has at last realized the disproportional number of indirect taxes which are the burden on the poor segments of society. Squeezing the purchasing power of common man mean a cut in the trade and industrial activities as indirect taxes always bring slump in the open market. The imposition of direct taxes will have minimum effects on the industrial output if the rate of taxes are rationalized. In this age of information, there is no secret left with any developed country with regard to its economy, finance and taxation system. What only needs to do is to adopt any foreign model after bringing changes into it to meet the local challenges. Tax collection is not an issue which can be enhanced with one order, but evolving a system is the trouble where the policymakers lack ability and vision.

The finance minister will have to use his own mind while listening to the suggestions made by the bureaucracy as increase in the tax collections should not put the entire industry in trouble. It is a routine of the policymakers to use a side of their minds and leave the other blank and ultimate result of this exercise is the failure. That is the reasons the country braces for the failures one after another in the long history of its mismanagement and mal administration. While devising taxation policies, the government forgets to understand that lower are the taxes, more are the business, trade and investment activities. Heavy and disproportional taxes close the doors for local and foreign investment. If the minister feels there should be a clear distinction between filers and non-filers, the first step should be to respect filers. They should be issued privilege cards to accept their participation in the nation building activities. The privilege card holders should be given preference in government offices, airports, public places, markets and elsewhere. In the present setup, the filers and none filers are treated with the same stick by the officials of every government agency.

issues in foreign trade P

LAHORE

DR AftAB AfZAL

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akistan is facing trade imbalance with various countries of the world and even could not reap the beneOits of free trade agreements with China, Malaysia, Sri Lanka, Iran, Mauritius and Indonesia. According to a report of the Pakistan Business Council, the government policymakers have failed to secure access for several exportable items during the last 10 years and the country is still in a process to get tariff concessions. China has appeared as the main trade partner in recent years and the process of negotiations is going on to ink the second phase of the free trade

agreement. The council believes in contrast to Pakistan, the member countries of the Association of Southeast Asian Nations, as well as Australia and New Zealand have signed agreements with China on favourable terms.

However, the Pakistani negotiators could not get similar tariff concessions for local exports. The country could avail only Oive percent of the concessional lines as compared to the Chinese goods which enjoy 57 percent tariff concessions.

No doubt China is trusted friend of Pakistan and the biggest trader partner, but every country has its own weak and strong points and wants to protect its interests. The Pakistani markets are infested with Chinese goods as

volume of trade between the two countries has increased manifold over the years. The bilateral trade reached $10.029 billion during the last Oiscal year of 2015-16, but China has been running a trade surplus with Pakistan which reached $9 billion in 2015.

Though under invoicing during the customs clearing process is blamed for the discrepancy in terms of the import bill, the Chinese statistics indicate the deOicit reached $14 billion in 2015 from $3.2 billion in nine years ago. It is important to protect the interests of the country and the trade agreements should be signed after taking all the stakeholders into conOidence. The council fears the trade agreements with Turkey and Thailand would affect

the local industry. On another note, Pakistan has failed to fully use its export potentials as industrial surplus is available in the cottage industry. The local-manufactures of electric items can create great demand in African countries and many other territories of the world. However, this aspect of the country had always been ignored by the business and trade ministries.

Instead of concentrating on the export of food items or raw material, the government should look to facilitate the industrial sector to export value added goods. It should also be taken into account that full dependence on China in every sphere of trade and industry would turn the country simply into a client state.

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Sars seizes fake sneakers worth Rs 8.7 million KUALA LUMPUR: Sars customs officials have seized counterfeit sneakers with an estimated value of R8.7m at the Lemombo border, Komatipoort, it said in a statement on Wednesday.

The agency seized 10 935 pairs of sneakers.

“A total of 9 085 pairs of ‘Adidas’-branded sneakers and 1 850 pairs of ‘Nike’-branded sneakers were discovered in a white truck entering South Africa from Mozambique at 01:00,” Sars said in a statement.

The truck driver had ignored requests from customs officials to stop at the port check point, the Sars statement said. Customs officials identified the truck as having been detained in July 2015 with a consignment of clothing. Police and custom officials managed to stop the truck at the port area. But, according to the Sars statement, the driver ran away.

uS to enhance bilateral trade with pakistan: envoy ISLAMABAD

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E David Hale, Ambassador of USA said that Pakistan was an important ally of US against war on terror and his country wanted to further enhance trade with it as promotion of two-way trade would be mutually beneficial for both countries.

He was talking to a delegation of Islamabad Chamber of Commerce and Industry that called on him led by President Khalid Iqbal Malik. Khalid Malik Senior Vice President, Tahir Ayub Vice President ICCI, Mian Akram Farid, Mian Shaukat Masud, Zafar Bakhtawari, Nasir Qureshi and Muhammad Faheem Khan were in the delegation. US Envoy

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said that Pakistan was an agricultural country but was using old technology and added that Pakistan could increase its agricultural productivity manifold by using latest agro technology and machinery of USA. He said security situation was improving in Pakistan which was laudable. He said improved security would attract more investors from USA and other countries to Pakistan and help trade and industrial activities to flourish. He said the newly elected President of US was a businessman and he knew very well the importance of promoting business relations with other countries. He was optimistic that during the tenure of new US administration, Pak-US trade and economic relations would get further boost. Speaking at the occasion, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry (ICCI) said that Pak-US bilateral trade during January-October 2016 was around $4.533 billion. However, he said there was lot more potential to further enhance two-way trade.

Saturday December 31, 2016

Chambers

chinese firms keen to cooperate with pakistan in textile sector A

ISLAMABAD

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21-member delegation of Chinese companies led by Zhang Shaoyun, Deputy Director General, Department of Commerce, Government of Xinjiang Uygur Autonomous Region visited Islamabad Chamber of Commerce and Industry and showed keen interest to enhance business collaborations in textile sector with Pakistani counterparts. The delegation was representing textiles, garments, clothing & apparel and chemicals sector companies. Speaking at the occasion, Zhang Shaoyun, Deputy Director General, Department of Commerce, Government of Xinjiang Uygur Autonomous Region said that Pakistan was the fourth largest cotton producer in the world while China was leading exporter of textiles products. Thus both countries have great potential to complement each other and enhance cooperation in textile sector for achieving better growth.

He said China has modern textile technology & machinery and added that close cooperation between pri-

vate sectors of both countries in this Oield would not only yield mutually beneOicial outcomes, it would also help Pakistan’s textile industry to upgrade itself and improve productivity. He hoped that visit of Chinese companies to Pakistan would also help in exploring opportunities for promoting bilateral trade, joint ventures, investment and multi-dimensional economic cooperation between Pakistan and China.

In his welcome address, Khalid

Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that textiles products played major role in Pakistan’s exports. He said that Pakistani textile exporters were now focusing on value addition of textiles products to achieve better results and urged that Chinese textile companies should share technology and expertise with Pakistani counterparts to realize these goals. He said due to high domestic labor cost, China was relocating its manufactur-

government to resolve issue of business community: Sardar Ayaz Sadiq

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LAHORE

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peaker National Assembly Sardar Ayaz Sadiq has promised to resolve issues being faced by the business community. “All sector-speciOic efforts are being made to turn country into an economic giant.” He was addressing the delegation of the Lahore Chamber of Commerce and Industry (LCCI), led by its President Abdul Basit. Other members of the delegation were the LCCI Vice President Muhammad Nasir Hameed Khan, Tanvir Ahmed, Sheikh Muhammad Ibrahim, Adnan Khalid Butt, Mian Abdul Razzaq, Mian Zahid Javed, Tariq Mahmood, Ch. Khadim Hussain, Moazam Rasheed, Mian Muhammad Nawaz, Ali Hassan Ashghar, Shahid

Nazir, Arshad Baig and Maqsood Butt while MNA Pervez Malik also spoke on the occasion. Speaker National Assembly Sardar Ayaz Sadiq said that he would to approach Federal ministries and important ofOicials for resolution of the problems of business community. He said that business community is the backbone of the economy and the main source of revenue that contributes to the national exchequer, their issues must be addressed on priority. He said that Government is well aware of the fact and taking various measures to ensure business friendly atmosphere.

Speaker National Assembly assured his full support to the LCCI delegation for early resolution of the issues being faced by the business community saying that he is ready to personally represent and raise the problems of trade

and industry at all available forums including standing committees of the National Assembly. He said that China Pakistan Economic Corridor (CPEC) is not only a game changer but it is a faith changer. He said that CPEC would bring economic prosperity in the region. The LCCI President Abdul Basit said that industrial Policy should be a Federal subject and should be uniformed for all the provinces. Currently, all the provinces are formulating their own industrial policy which is creating an undue competition among the provinces. He said that currently, the rate of RegasiOied LiqueOied Natural Gas (RLNG) to Industrial sector in Punjab is around Rs932 per million British thermal unit (mmBtu) compared to the system gas which is being provided to Sindh industry at Rs600 per mmBtu.

ing units to other countries and stressed that it should consider Pakistan as its Oirst choice to take beneOit of our educated and skilled labor at affordable cost. He said the cooperation with Pakistan’s textile industry would be helpful in meeting the requirements of global textiles market. This arrangement would also beneOit Pakistani entrepreneurs as they would be able to learn modern techniques for producing value added products in the country.

uS embassy delegation visits Rcci he Pakistani business community should take full advantage of US Generalized System of Preferences (GSP) programme for promoting exports to the United States. This was stated in a meeting of US embassy delegation comprising Deputy Economic Counselor and Acting commercial Counselor Edwin Saeger and Second Secretary for Trade and Investment, Benjamin Embury while visiting Rawalpindi Chamber of Commerce and Industry (RCCI) here Tuesday. During his meeting with Raja Amer Iqbal, President RCCI, Second Secretary Benjamin Embury said the GSP programme was available to Pakistan,s private sector till 2017 and there is a need to create more awareness about it so that Pakistani business community could fully explore it for promoting exports to the US.—CB Report

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IHC adjourns hearing of tax references filed against FBR Saturday December 31, 2016

National fBR orders strict security at Karachi airport KARACHI

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he Federal Board of Revenue (FBR) has decided to beef up security at Jinnah International Airport in order to curb smuggling.

Through a letter, the FBR has directed the chief collector Enforcement (South) to increase the number of customs officials at arrival and departure lounges of the airport. Currently, there are around 150 customs officials who work in shifts at the airport, including preventive officers, senior preventive officers and superintendent of preventive services. It may be mentioned here that the Pakistan Customs is already facing acute shortage of manpower and there would certainly be a great challenge for Customs Department to fulfill the requirements of the FBR. The sources informed Customs Today that the Chief Collector-Enforcement-South has decided to write a letter once again to the FBR chairman about the shortage of staff in the collectorate.

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customs court hears 17 cases he Special Court of Customs Taxation and Anti-Smuggling on Thursday (today) heard 17 cases, including pre-arrest bail pleas filed by suspects.

Most of the cases were adjourned without any proceedings as the parties and lawyers concerned did not appear in the court. Hearing of pre-arrest bail pleas filed by accused Abdul Razaq and Suleman Dawood were adjourned for new dates in next week. A case against Shaukat Ali was also scheduled for hearing in which the court recorded statements of the parties. Shaukat Ali is on bail nowadays. Framing of charges against Humayon Rasheed also adjourned for next week. Final arguments and statements of the concerned parties in a case of smuggling against Rafique Ali was also scheduled for hearing which is rescheduled for next week.—M Imran Mehar

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ISLAMABAD: The Islamabad High Court (IHC) on Tuesday adjourned the hearing of a couple of tax matters challenging recovery claims made by field offices of the Federal Board of Revenue (FBR).

An IHC bench comprising Justice Aamer Farooq heard the cases and adjourned the hearing with directives to submit details before the bench on the next date of hearing.

M/s Huawai Technologies (Private) Limited and M/s Wateen Telecom Limited had filed the references in which the companies had challenged different show cause notices issued by the Large Taxpayers Unit, Islamabad.

NA finance, Revenue body supports Lcci proposal on broadening of tax net T

ISLAMABAD

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he Standing Committee on Finance and Revenue has endorsed the proposal moved by the representatives of the Lahore Chamber of Commerce and Industry (LCCI) that Federal Board of Revenue (FBR) should focus on expanding tax net rather than pressurizing and harassing the existing taxpayers. “In a bid to increase the revenue collection, the FBR needs to bring more and more people into the tax net,” a delegation led by LCCI President Abdul Basit and comprising other members from various sectors of business moved the proposal in the meeting of the committee here. The delegation was on a visit to Parliament House on the invitation of Speaker Na-

tional Assembly Sardar Ayaz Sadiq and later attended the meeting of the finance committee which met here with the Chairman Qaiser Ahmad Sheikh in the chair. LCCI delegation told the committee that there was 30 percent decline in the

number of filers as compared to the previous year; therefore, the FBR should be requested from the floor of the committee to extend the date for the filing of income tax returns until December 31, 2016. Last year, the number of filers was 1.1 mil-

lion but only 525,000 have filed their returns till now. The committee was told that due to problems in FBR’s IRIS system, a large number of businessmen could not file their returns till December 15 despite the fact that business community wanted to perform national obligations. The committee endorsed almost all the observations of the LCCI delegation. The LCCI president suggested that a national industrial policy should be formulated and new avenues should be explored to increase exports. He also suggested for incentivizing local industrial sector and inclusion of local investors in the Special Economic Zones. The committee appreciated the concerns of the industrial sector and assured them that their concerns would be taken up at the appropriate forum.

faisalabad excise collects Rs 30.752m tax E

FAISALABAD

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xcise and Taxation department anti-narcotics branch has collected Rs 30.752 million from July to November 2016 of current Oiscal year and achieved its annual target of Rs 89.251 million. Sources told Customs Today that excise department collected Rs 27.740 million from Faisalabad during the Oirst Oive months while Rs 1.033 million were collected from Jhang against the assigned target of Rs 4.683 million.

Excise Chiniot generated Rs 1.515 million tax by achieving its target of Rs 0.756 million. Similarly excise collected Rs 0.462 million against the assigned target of Rs 1.197 million during the Oirst Oive months of current Fiscal Year2016-17. Meanwhile Excise and Taxation Department has collected Rs 4.08 million in terms of entertainment duty during the Oirst Oive months of the Oiscal year 2016-17. Sources said that excise collected Rs 3.919 million against

the assigned annual target of Rs 8.684 million, which has been achieved up to 45 percent.

Sources said that Excise and Taxation Department already expedited their efforts to recover outstanding amount from default-

ers. Sources said that stern action will be taken against those who will found involved in tax evasion.

Sources said that Excise and Taxation department already issued tax notices to defaulters warning them to clear the outstanding tax

amount at the earliest. Sources said that those defaulters who will fail to clear pending dues will have to face stern action which will led to seizure of their movable and immovable property and attachment of their banking accounts also.

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15kg heroin recovered from PIA’s Jeddah-bound flight ISLAMABAD: The joint search team of officials from Pakistan Customs, Airport Security Force and Anti-Narcotics Force has recovered 15kg heroin from the Pakistan International Airline’s flight ready to depart for Jeddah from Karachi. According to PIA spokesman, the security staff of the airlines at Jinnah International Airport, in its routine pre-departure search of a B-777 aircraft, which was scheduled to operate as PK-7121 (Karachi-Jeddah) recovered approximately 15kg heroin late Tuesday. PIA Chief Executive Officer Bernd Hildenbrand has ordered immediate inquiry and detailed investigation in to the matter. He emphasised that strict action should be ensured against those responsible for this crime, which not only brings bad name to the airline but also to the country.

123 moneylaundering cases filed in six years, Senate told ISLAMABAD

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s many as 123 cases of money laundering were filed against individuals, companies and cartels during 2010-2016, This was disclosed by Federal Minister for Interior Ch Nisar Ali Khan during the question hour, in a written reply to the question by MQM’s Col (R) Syed Tahir Hussain Mashhadi in Senate. The Federal Investigation Agency (FIA) unearthed such cases and found maximum 82 cases in Lahore, 32 in Multan and nine in Karachi, the accused include involved illegal busi-

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ness of hundi and hawala, foreign currency exchange, prize bonds, overseas promoters, bankers, jewellers and car showrooms. The minister explained the series of measures taken to arrest the trend of money laundering, which included designation of four agencies i.e. FIA, NAB, ANF and FBR with their distinct mandate/jurisdiction to conduct investigation and prosecution of money laundering cases, constitution of the National Executive Committee and General Committee under AML Act, 2010 to oversee Anti-Money Laundering, Combating Financing of Terrorism Regime, enhanced international cooperation, introduction of declaratory regime for physical movement of currency and bearer negotiable instruments, revision of currency transaction report threshold to Rs2 million and maximum coverage of predicate offences in terms of international standards.

National

egyptian authorities asked to help release 18 pakistani crew members T

KARACHI

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he Ministry of Ports and Shipping has asked the Egyptian authorities to evacuate 18 Pakistani crew members, including a chief officer, who are held at a general cargo vessel off the port area.

A Kuwaiti general cargo vessel, MV Akaaz, had been drifted off the port area with 17 crew members and the chief officer on board.

Talking to Customs Today, Chief Officer Jameel Jangian of MV Akaaz stated that the vessel had been drifted for the last four months and the shipper as well as the Egypt port authorities were not giving attention to the problem.

Jangian said that six of the crew members onboard have fallen ill and there is no way to reach hospital whereas the salaries are also unpaid since the date of joining.

All the food at the vessel is nearly consumed, he said. Source said that now the ministry has contacted the Kuwaiti Shipping company for early release of the vessel

as well as has asked the Egyptian Ports Ministry to make suitable arrangements for the return of the crew members. The Port and Shipping Ministry has also expressed concern over the seizing of the passports of the crew members by

Saturday December 31, 2016

Egyptian authorities. The vessel was on a nine-month tour of different ports. According to the ministry officials, arrangements are being made to ensure return of the crew members by Pakistan International Airlines.

customs impounds Land cruiser worth Rs 16m from Liberty chowk LAHORE

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ustoms Intelligence and Investigation officers have seized non-duty paid Toyota Land Cruiser V8 worth Rs 16 million from Liberty Chowk here, sources told Customs Today. The sources said that customs officials on information of Customs I&I Director Zeba Hai Azhar intercepted a Land Cruiser V8 LEH/ 055 model 2013 and demanded clearance documents from the driver.

However, the driver failed to produce any documents against the vehicle. The sources said that driver of the vehicle introduced himself as a son of a top police official. The black V8 Land Cruiser was valued at Rs 16 million in the market and customs officials have registered a case against the accused party.

The sources said that the vehicle was smuggled against the law and would be seized in the name of the state. On the other hand, sources said that such smuggled luxury vehicles are being driven normally by the top officials of police and members of provincial and national assemblies. The customs official sources said that such elements know the trick to pressurize the customs authorities.

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farooq corp, Sain enterprises ‘confess’ to evading tax

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KARACHI

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arooq Corporation and Sain Enterprises, earlier suspected in import scam of battery-operated tricycles, have ‘confessed’ to evading taxes of near Rs one million in the Sindh High Court.

Ghulam ullah Sheikh advocate of Franklin Law Associates, appearing for the petitioners/importers Farooq Corporation and Sain Enterprises, the petitioners are ready to pay the evaded amount, asking the court to direct the respondents to release the consignment on payment of evaded amount, pending

adjudication proceedings.

The SHC’s appellate bench, comprising Justice Munib Akhtar and Justice Muhammad Humayun Khan, also issued notices in this Rs 992,000 tax evasion case. The bench after hearing the counsel for petitioners issued notices to the respondents for Dec 23.

However, the petitioner also maintained that it was not a case of mis-declaration but it was a bona Oide mistake by the shipper who instead of knocked down tricycles shipped assembled units. Earlier, the authorities at Port Qasim had called the consignments of Farooq Corporation for examination after a misdeclaration scandal was unearthed.

The Directorate of Customs Intelligence (Enforcement) and Customs Collectorate (Appraisement-West) locked horns over the jurisdiction in this mis-declaration case and now the court is to decide jurisdiction of these authorities. The accused company was importing baby batteryoperated tricycles in guise of baby trike parts through mis-declaration of description and gross under valuation. After examination of the consignment by both the directorate and collectorate, it was conOirmed that baby tricycle batteries were being imported instead of declared baby trike parts, evading taxes of Rs0.992 million. Sources in Customs Intelligence (Enforcement) told Cus-

toms Today that the department thwarted the attempt of mis-declaration and lodged a case against the importer under Section 32(1), 32(2) and 32A. So it is not the case of Appraisement-West. It is not yet known whether this importer used to clear consignments through mis-declaration in the past but it is likely the department would start investigation into already cleared more than 250 containers. The sources also conOirmed that Oive containers of the said importer (Farooq Corporation) now lying at Port Qasim and cannot be cleared without thorough investigation. Sources further stated that some Customs ofOicials might be involved in the investigation.

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Brazil’s trade balance records surplus of $ 45 billion Saturday December 31, 2016

World

BRASÍLIA: Brazil’s trade balance reached a surplus of US$ 45bn by the third week of December. The third week period recorded a US$ 864 million surplus from exports of US$ 3.969bn and imports of US$ 3.105bn. The result is far better than last year when the whole year surplus was US$ 19.69 billion. In 2016, exports so far have totaled US$ 178.088bn and imports, US$ 133.083bn, with a surplus of US$ 45.005bn. Exports in the third week reached US$ 793.8 million, 15.3% above the US$ 688.2 million second week, because of a 24% increase in exports of manufactured products and 6% in commodities.

On the other hand, sales of semi-manufactured products decreased -13.8%.

Among manufactured goods were aircraft, cars, refined sugar, cargo vehicles.

chinese customs finds three tonnes of pangolin scales

SHANGHAI

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hree people have been caught smuggling more than 3 tons of scales of endangered pangolins. This is the largest smuggling case of pangolin scales

export surge gives a boost to fragile thai economy ANGKOK: Thailand’s Customscleared exports surged last month, thanks to higher demand from major markets, an encouraging sign for the trade-dependent country whose economy has been struggling to regain traction. Exports jumped 10.2 per cent from a year earlier, Commerce Ministry data showed yesterday, compared with the median forecast for a 1.55 per cent rise in a Reuters poll and October’s 4.2 per cent drop. The percentage gain was the highest for a month since February. Higher global oil prices helped lift demand for Thai oilrelated goods last month and overall shipments should increase this year, a ministry official told a briefing. Imports last month increased 3.0 per cent from a year earlier. Economists had expected a fall of 1.05 per cent after a rise of 6.5 per cent in October.—CB Report

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spotted by Chinese Customs, city ofOicials said yesterday. Pangolins, one of the most trafOicked mammals in Asia and increasingly Africa, are in large demand in central, east and southeast Asia in particular, according to World Wild Life. The meat is considered a delicacy and the scales often used in traditional medicines. Shanghai Customs ofOi-

cials said a container imported from Africa was found concealing other products among the declared timbers in a machine examination on December 10. After opening the container, ofOicers found a total of 101 bags of pangolin scales, weighing 3.1 tons. It is estimated that about 5,000 to 7,500 pangolins would have been killed to produce such an amount, the Customs authority said. But this case might be just a tip of an iceberg. The Customs authority later found the suspects had been buying pangolin scales from Africa and smuggling them to China since 2015. Further investigation is under way. All eight species of pangolins have been listed in Appendix I of Convention on International Trade in Endangered Species, the most endangered among CITES-listed animals and plants and any international commercial trade is forbidden. Pangolin scales are believed some people to have health beneOits, such as helping women to lactate milk.

china’s Nov crude oil imports from Saudi Arabia rise 30%

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hina’s November crude oil imports from Saudi Arabia jumped nearly 30 percent from the year before, customs data showed on Thursday, with the kingdom overtaking Russia to become the largest crude supplier to the world’s No 2 economy. Imports from Saudi Arabia rose 29.19 percent on a year earlier to 1.15 million barrels per day (bpd), while supply from Russia climbed 17.92 percent to 1.12 million bpd, the Oigures

showed. Crude oil imports from Iran in November grew 24.48 percent year-on-year to 611,338 bpd, while imports from Iraq rose 15.68 percent to 695,148 bpd. China shipped in 850,425 bpd of crude oil from Angola in November. South American suppliers Brazil and Venezuela have ramped up shipments by 79.16 and 39.17 percent respectively over the Oirst 11 months, mostly due to demand from independent reOineries.—CB Report

Sars customs seizes fake sneakers worth R8.7m JOHANNESBURG

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ars customs ofOicials have seized counterfeit sneakers with an estimated value of R8.7m at the Lemombo border, Komatipoort, it said in a statement on Wednesday. The agency seized 10 935 pairs of sneakers. “A total of 9 085 pairs of ‘Adidas’-branded sneakers and 1 850 pairs of ‘Nike’branded sneakers were discovered in a white truck entering South Africa from Mozambique at 01:00,” Sars said in a statement. The truck driver had ignored requests from customs ofOicials to stop at the port check point, the Sars statement said.

Customs ofOicials identiOied the truck as having been detained in July 2015 with a consignment of clothing.

Police and custom ofOicials managed to stop the truck at the port area.

But, according to the Sars statement,

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the driver ran away. The truck was escorted to a state warehouse where the consignment was kept so that the sneakers could be counted.

Brand holders within South Africa were required to do an authentication process of stock. Contravention of the Customs and Excise Act, Counterfeit Act and Criminal Procedures Act is being investigated. No arrests have been made.

Meanwhile, South African banks are likely to be less profitable next year amid a slow economy and a concomitant increase in bad debts and rising capital costs. However, insurers are likely to profit from the new technology. With about a 1% growth forecast for next year, banks will struggle to find new customers while bad debts will rise as unemployment increases, analysts interviewed by News24 say. “Increased cost of funding and rising impairment charges will collectively cause a profit pinch,’’ Adam Bates, EY Financial Services Africa leader, said.

iran non-oil goods exports cross $31b ran exported non-oil goods valued at over $31 billion in the nine months to December 20, according to ofOicial customs data. Iran Customs Administration gave the exact value of non-oil exports in the nine-month period at $31.593 billion, said an Iran Daily News report, citing Tasnim News Agency. During the period, Iran also imported goods worth $31.538 billion, which indicates a growth of 4.38 per cent against the Oigure for the same period last year, it said. In recent years, Iran has stepped up efforts to increase non-oil exports and cut dependency on oil revenues. The coun-

try’s exports comprise diverse sectors, including tourism, engineering and transit, which also recorded a boom. Meanwhile, Daelim Industrial Co., a major construction Oirm here, said Thursday that it has secured a 2.3-trillion-won (US$1.9 billion) deal to expand reOinery facilities in Iran. Daelim said it has received a letter of award (LOA) on the contract to improve and expand the facilities of Iran’s Isfahan Oil ReOinery, located around 400 kilometers south of Tehran. The two sides plan to sign a formal contract next month for the four-year construction project.—CB Report

man held trying to smuggle Rs 25L at mumbai airport’s t2

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MUMBAI

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he accused, Arif Koyante, was headed from Mumbai to Dubai, when he was proOiled

by AIU ofOicials. After a thorough search of his baggage, the cash was found concealed in 52 envelopes, which were tucked inside layers of

13 cardboards. The currency has been seized by the Customs Department on the belief that it was being smuggled out of the country and therefore liable for conOiscation under the Customs Act 1962, along with the FEMA 2000. Also read: Woman air passenger held with gold worth Rs 83 lakh at Mumbai airport. Koyante has admitted to possession, and is believed to be a

carrier whose job was to transport the money to Dubai. Although the passenger was released on a bail of R1 lakh, he will be required to comply and produce himself before the AIU until the investigation is complete. Pradnyasheel Jumle, Deputy Commissioner, AIU, Mumbai Customs said, “The accused had arrived in Mumbai on Saturday night, and took possession of the currency in

the city. We have identiOied the name and picture of the person who is believed to have given him the currency, but will not be revealing that until investigation is on.” According to him, once the carrier landed in Dubai, he would receive a call and hand over the cash to the concerned person. Also read: Smuggler caught with Rs 25 lakh gold hidden in a magazine.

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FIA detains illegal money changer LAHORE: The Federal Investigation Agency (FIA) has booked an accused on the charges of running illegal money exchange.

An FIA spokesperson told Customs Today that a raid was conducted by the Corporate Crime Circle Lahore of the agency under the supervision of Deputy Director Jamil Ahmad Khan Mayo at M/s Bahadur Traders shop no 07 first floor Japan center duty free shop Cooper Road Lahore. During the investigation, Bahadur Ali, a resident of house no 117 street no 19 Gulistan Colony Mustafa abad Dharam Pura, lahore was found involved in illegal business of currency exchange and Hundi and Hawala without permission of the State Bank of Pakistan.

fBR issues notices to rich individuals to recover 3-year-old levy

Saturday December 31, 2016

National

Nisar assures businessmen of addressing genuine issues

gujranwala fiA issues new red list of human traffickers SIALKOT

KARACHI

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he Federal Board of Revenue (FBR) has sent notices to the rich individuals, who didn’t pay onetime tax the government imposed three years back to support the poor community of the country. According to the official sources, the government imposed 0.5 percent tax (income support levy) on the net moveable wealth, exceeding one million rupees through Finance Act, 2013 for only one year to provide financial assistance and social protection to economically-distressed persons and families. The law was repealed in the subsequent year over the reservations raised by the rich people. The Board’s official said taxpayers had moved court against the levy soon after its imposition. Therefore, Sindh High Court allowed general stay, barring the tax machinery from collecting tax, he said, adding, “But, the stay was recently vacated.”

ederal Investigation Agency (FIA) Gujranwala Region has issued new list of red book human traffickers while issued orders for tight security of foreign passengers during their arrival and departure at Sialkot International Airport Limited (SIAL). FIA Deputy Director Khalid Anees told Customs Today that the Federal Interior Ministry has instructed that the all provincial and regional offices of FIA to detain human traffickers of latest list of red book and others. He told that the Ministry also directed FIA to tight security of airports while provide full security to foreign passengers during their arrival and departures on airport. Khalid Anees added that the FIA Gujranwala Region has issued new list of 35 red book human traffickers and constituted special teams to detain these red book human traffickers while these teams has started raids on various dens and these human traffickers will nab soon.

He told that the FIA has appointed one assistant director, two inspectors, five sub inspectors and twelve constables on Sialkot International Airport Limited (SIAL) to stop human trafficking and money laundering while gold smuggling with help of Customs Preventive Staff, Anti Narcotics Forces (ANF) and Airport Security Forces (ASF).

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ANf recovers 5 tonnes of drugs in 18 operations, arrests 16 he Anti-Narcotics Force (ANF) has recovered five-tonne drugs worth Rs 13.53 billion in international market in 18 operations across the country. According to an ANF press release, the operations were conducted in Quetta, Qilla Abdullah, Rawalpindi, Islamabad, Lahore, Faisalabad, Peshawar, Haripur, Karachi, Hyderabad and Khairpur. The seized drugs comprised of 3.8-tonne opium, 1.177tonne heroin, 24.35kg hashish, 5.65kg amphetamine and nine gram cocaine.

During operations 16 persons including two foreigners and a lady smuggler were rounded up while four vehicles being used by the drug smugglers were also impounded.—CB Report

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LAHORE

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hairman Federal Board of Revenue (FBR) Nisar Muhammad Khan has said that genuine grievances of the business community would be addressed once budget proposals of the Lahore Chamber of Commerce and Industry (LCCI) are received.

He was talking to the LCCI delegation, led by its President Abdul Basit. Other members of the delegation were the LCCI Vice President Muhammad Nasir Hameed Khan, Tanvir Ahmed, Sheikh Muhammad Ibrahim, Adnan Khalid Butt, Mian Abdul Razzaq, Mian Zahid Javed, Tariq Mahmood, Ch. Khadim Hussain, Moazam Rasheed, Mian

Muhammad Nawaz, Ali Hassan Ashghar, Shahid Nazir, Arshad Baig and Maqsood Butt. Chairman FBR said that no one else could be interested in the development of the trade and industry than the Federal Board of revenue as if the businesses Olourish, revenue of the department would automatically enhance. He said government needs revenues to run its affairs smoothly and tackle the security and poverty challenges. He said that number of provincial taxes is much higher than the Federal taxes therefore business community should take up this issue with their relevant governments. He informed the LCCI delegation that tax-free import is allowed to only machinery and equipment for China Pakistan Economic Corridor (CPEC).

Raw materials have been excluded by the government from this list on the request of FBR. On the issue of

38-B, he said that tax ofOicials have been directed to treat business community with due honor. The Chairman said that the FBR considers businessmen as partners and not adversary. The LCCI President Abdul Basit said that the role of Federal Board of Revenue is considered as a key facilitator to private sector. But our experience shows that dealing with FBR, compliance and ofOicials is not always easy. Tax system is complicated and burdensome which creates room for complicities between tax payers and the tax collectors. He said that number of taxes and frequency of paying taxes must be reduced. Moreover, taxes may be paid quarterly instead of every month.

For that matter, all Para tariffs must be merged in the main tariffs. Similarly, there should be electronic communication between taxpayers and tax departments.

Valuation Dg revises customs values of soda ash

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KARACHI

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he Director General Customs Valuation issued the value of Soda Ash vide Valuation Ruling 996/2016. The customs values of Soda Ash different grades were earlier determined vide Valuation Ruling No.540/2013 dated 22.01.2013 and Valuation Ruling No.553/2013 dated 10-05-2013. According to details, representations were received from commercial importers, for de-

termination of customs value of Soda Ash afresh. Hence existing Valuation Ruling, which is over three years old is required to be revised in the light of Sindh High Court orders dated 10.11.2015. Since 90 days have passed and representations were received from commercial importers regarding values determined in afore mentioned valuation ruling, an exercise was initiated to re-determine the values of Soda Ash. 3. Stakeholders’ participation in determination of Customs values.

Meeting with all the stakehold-

ers including importers and representatives from clearance Collectorates, was eld on 07-12-2016 to discuss the current international prices of the subject item. The commercial importers stated that the prices of subject items are showing down ward trend in e international markets, however, M/s ICI Pakistan Ltd, local manufacturers, on the other hand submitted that the prices of soda Ash are showing upward trend. They supported their submissions with ICIS and HIS Chemicals for current prices of soda

ash. The view point of all participants was heard in detail and considered to arrive at Customs value of Soda Ash. Method adopted to determine Customs values: Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the particular valuation issue at hand. The transaction value method as provided in Sub-Section (1) of Section 25, found inapplicable in light of the wide variety of invoices submitted at import stage.

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FIA nabs suspect involved in money laundering, recoveres Rs 1m Saturday December 31, 2016

Lahore

LAHORE: The Federal Investigation Agency (FIA) has booked an accused who is involved in money laundering and illegal business of hundi and hawala. According to spokes person of FIA a raid was conducted by FIA Corporate Crime Circle team headed by Deputy Director jamil Ahmad Mayo which also includes Inspectors Nasir Awan Abdul Qayyum, Shafqat Jabbar , Muhammad Ishfaq, Nadir Azad and Marouf Khan at shop no 17 ground floor Aulia Centre Lahore where a person namely Muhammad Ibtisam was found involved in illegal business of hundi, hawal. He was sending money abroad without permission of State Bank of Pakistan. FIA authorities recovered Pakistani currency amounting to Rs.800000, US dollar 550/- Saudi Riyal 2000/-, Canadian dollars 900, receipts regarding hawala etc were also recovered from the premises.

cement manufacturers paid Rs 189 billion tax in 4 years LAHORE

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he cement manufacturers in the country have claimed to pay Rs 189 billion taxes during the last four years. All Pakistan Cement Manufacturers Association (APCMA) Chairman Sayeed Tariq Saigol, in a statement, said the tax contribution during 2012-13 was Rs39 billion, whereas during 201516 the contribution increased more than double ie approximately Rs83 billion. “Though the industry posted growth in these years with dispatches rising to 38.87 million tons from 33.43 million tons in 2012-13, the growth in the government collection is mostly due to the increase in duties and taxes from Rs1,551 per ton to Rs2,492 per ton, a whopping

customs Appellate tribunal accepts appeal filed by Alba international ustoms Appellate Tribunal has accepted the appeal in case of M/s Alba International against collector customs (Appraisement), Dry port Mughalpura Lahore and collector customs (Appeals) Lahore. Bench-II member judicial Omer Arshed Hakeem head the arguments from both sides and said in the final remarks that customs appeals is accepted, quash the impugned order and direct the respondent collectorate to process appellants refunds claims and remit the sale proceeds of impugned auction merchandise to the appellant in accordance with auction Rules Ibid section 201 of customs act 1969. According to the precise fact of the case, the appellant imported a consignment from Malaysia and filed GD declaring the goods as Paper Board classified under PCT heading 4802.1000 declaring the value of US dollar 11780.—Muhammad Nawaz

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increase of more than 60 percent,” he added. He said that there is a strong need to cut down duties and taxes to bring down the prices and facilitate consumers which would also help industry to grow as it is playing a vital role in the development of the country. There is a strong growth in the cement dispatches albeit a continuous decline in exports over the last few years, he added. Sayeed Tariq said the country exported 8.57 million tons of cement in 2012-13 which has gradually dropped about 46 percent to 5.87 million tons in 2015-16. However, the rise in local consumption helped the industry to stay aOloat. “The factors contributing to decline in exports include increase in fuel prices and other input cost, and the most damaging was the barriers erected by the countries we export to, such as anti-dumping duty imposed by South Africa to protect its local industry,” he said.

customs central Region posts 6pc growth in duty, taxes in Nov

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he Customs Central Region has collected Rs 14,218 million duty and taxes during

the month of November and registered 6 percent growth. As per details, the Customs Appraisement collected Rs 6,155 million during the month of November against the target of Rs 6,109 million. Similarly, Customs Preventive collected Rs 2,642 million taxes and duties during the month of November 2016

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against the target of Rs 2,745 million. The Collectorate of Multan collected Rs 4,031 million during the period under review against the target of Rs 3,735 million.

In the same way, the collectorate of Customs Faisalabad collected Rs 1,389 million during the month of November against the target of Rs 846 million. Overall the Central Region collected taxes and duties from all the four Collectrates worth Rs 14,218 million by registering a growth of six percent against target of Rs 13,435 million. Sources said that Chief Collector of Customs Samaira Nazir has instructed the customs officials to put all-out energies to achieve the target for the financial year and bring out good results. Sources said that the chief collector is optimistic that due to comprehensive strategy for collection of outstanding amounts, the customs will definitely achieve revenue collection target of fiscal year 2016-17.

pakistan allows import of raw cotton customs Appellate tribunal hears 32 cases he Customs Appellate Tribunal versus customs Lahore, Pakistan Bagfrom india after a month heard 32 cases on Wednesday. gage versus customs Lahore, Muham-

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akistan has once again allowed import of cotton from India through Land Freight Unit (LFU) Wagha as Plant Protection Department has allowed the import. According to sources of Customs Today, Pakistan had suspended import of cotton from India last month when more then 2000 bails of raw cotton were barred to enter in Pakistan.

Those bails of raw cotton were reached near to Pakistan border and were ready to cross international border but due to escalation on line of

control Pakistani high ofOicials stopped that loaded trucks to enter in Pakistan. Informed sources in the textile sector told that high ofOicials of the Plant Protection department, which is functioning under federal ministry of food security, have issued verbal orders to the staff to allow import cotton again. Pakistan textile industry has showed pleasure on this step because quite a number of textile industries were forced to shut because of shortage of raw material and high price of local crop.—M Imran Mehar

The members of all benches from Lahore, Karachi, Islamabad and Peshawar heard the cases in Lahore bench and adjourned all the cases until the next hearing. Chairman Customs Appellate Tribunal established special benches to decide the cases. The Customs Appellate Tribunal special division bench comprising Member Judicial bench-II and Member Technical bench-II adjourned seven cases of Nouraz Khan versus customs Faisalabad, Noor Karim versus customs Faisalabad, Ikram International versus customs Lahore, Hawk Trade Impex

mad Ibrahim versus customs Faisalabad and Muhammad Irshad versus customs Multan. Special division comprising member judicial bench-II Omer Arshed Hakeem and Technical benchII Lahore Imran Tariq heard 12 cases of Jahangir Ghulam Ali versus customs Lahore, Sardar Muhammad versus directorate of Intelligence and Investigation Lahore, three cases of Shah PVC coated, Rehman Ullah and ShOique Khan versus directorate of Intelligence and Investigation Lahore, customs Lahore versus Muhammad Naeem, Estrean Agencies.—Muhammad Nawaz

customs ASo impounds two illegally imported cars

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he Customs Anti-Smuggling Organization (ASO) car cell has impounded illegally imported cars worth Rs 3 million from Johar Town and Township, sources told Customs Today the other day. Sources said that the

customs ASO team intercepted a Honda Accord model 2005 in the Township area. The customs team comprising Deputy Superintendent Mazhar Butter and Inspector Sajjad Bukhari demanded the legal clearance documents against the vehicles. However, the owner failed to produce anything. The sources said that the car was being driven by one Faheem who is a

resident of Township. The customs authorities said that the value of the black Honda Accord is estimated at Rs 2.7 million. The Customs authorities after seizing the vehicles registered a case in this regard and sent the vehicle for forensic test. During another raid, the Customs authorities seized an illegally imported Cultus from one Jamil who is a resi-

dent of Johar Town area near Revenue Society. The sources said that the car was imported illegally in 2003 and is valued at Rs 0.3 million. It was further informed that the accused when asked about the legal documents slipped away from the scene. The customs authorities seized the car and registered a case against the accused, the sources said.

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Jiangsu to establish port group WASHINGTON: China’s Jiangsu province government has proposed to establish a port group to integrate all the port assets in the region.

The move aims to optimize the operational efficiency of the ports in the province.

Jiangsu has two listed port companies, Lianyungang Port and Nanjing Port, and a number of river ports including Suzhou Port, Nantong Port and Zhenjiang Port.

The ports in Jiangsu completed a combined cargo volume of 2.33bn tons in 2015. In 2015, Zhejiang government established a new entity named Zhejiang Port Investment Operation Group, which has become the operating platform for port assets in Zhejiang.

New cranes to raise Sihanoukville port’s capacity tate-owned Sihanoukville Autonomous Port (SAP) received its first shipment of four new rubber-tyred gantry (RTG) cranes from Japan this week under a $22 million investment plan that aims to expand the seaport’s container throughput capacity by 80 percent, a port official said yesterday. “We received our first shipment of RTG cranes and they will be used in the container yard to move containers off and on to trucks more quickly,” SAP chairman Lou Kim Chhun said yesterday. “This is part of our goal to expand port capacity.” He added that the expansion project was being financed by the port’s internal budget, and was not linked to a concurrent $80 million expansion plan financed

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by the Japanese government first announced in 2014. According to Chhun, the four new RTG cranes would boost the port’s current handling capacity of 400,000 TEUs, or standard 20-foot (6 metre) equivalent container units, by 50 percent. Another two gantry cranes due to arrive from China by the end of the year will raise capacity even further, facilitating the loading and off-loading of containers on ships.

“The new machinery will increase the ports capacity to 700,000 TEUs,” he said. “This is a very important part of our commercial viability.” SAP is Cambodia’s only deepwater seaport and accounts for approximately 65 percent of all container shipments. The number of containers passing through the port reached 390,000 in 2015, up 17 per cent compared to 2014, with the most recent data showing that gross throughput of cargo reached 2 million tonnes during the first half of 2016, an increase of 8 percent year-on-year increase.—CB Report

Ports & Shipping

philadelphia port to get $300m face-lift from state bond PHILADELPHIA

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commitment of $300 million to the Port of Philadelphia during the next four years could make it a bigger player among East Coast ports at a crucial time. Gov. Tom Wolf went to the port on Wednesday to follow up on his November announcement that he will use borrowing authority granted by the Legislature to improve the port’s infrastructure, warehousing, and equipment. Company fees and leases at the port will repay the bond, not taxpayers, Wolf’s administration said. The port currently is a relatively minor player in shipping, but Wolf’s administration said it expects the improvements will double the port’s container capacity, boost direct employment from about 3,000 to 5,000 and triple annual revenue to the state from $5.7 million to $18.9 million. The investment comes as the Panama Canal’s newly expanded locks are expected to shift some con-

tainer business to the East Coast and the Delaware River’s main shipping channel is being deepened from 40 to 45 feet. That will make the port better prepared for the larger, deeper-draft container vessels that will be able to reach the port through a deeper Delaware River channel, as well as a recently widened Panama Canal, the administration said. The expansion still would leave the Philadelphia port out of the United States’ top 10 busiest ports, according to statistics from the American Association of Port Authorities. Much of the bor-

rowed money was expected to go toward the purchase of four new post-Panamax electric container cranes, the construction of container warehouses and the deepening of the terminal’s marginal berths to 45 feet, it said.

The Packer Avenue Marine Terminal, the port’s largest maritime facility, will be modernized to support the electriOication of existing diesel cranes and offer cold ironing capabilities, a service that allows ships to turn off their engines and get power by plugging into shoreside electrical systems.

Saturday December 31, 2016

port of gulfport looks to cuba for trade lane he Port of Gulfport is pursuing a future trade relationship with Cuba. Creating a “trade lane” with the nation could mean exports of poultry or building materials heading south. But there are some significant challenges as well. The Port of Gulfport is no stranger in dealing with Cuba. Exports from Mississippi were shipped to that country just over 20 years ago. “If you go back in the port’s history to the late 1990s, the port was actively involved in trade with Cuba.

Crowley was the first vessel that pulled out from the gulf and ended up going with a load of 500 tons of poultry into Cuba,” said Port Executive Director Jonathan Daniels. Things have changed dramatically since then. The re-establishment of trade relations between the U.S. and Cuba could create opportunity for ports along the gulf. “A lot of ports are looking to try and get into that market. But what we don’t want to do is get back into that market at the detriment of what we have with our current trade lanes,” said Daniels.—CB Report

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port of Vancouver expands industrial footprint T

WASHINGTON

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he Port of Vancouver is building a new industrial building in hopes of attracting new manufacturing, warehousing and distribution businesses to the port.

The Centennial Industrial Building is being constructed along Northwest 32nd Avenue, across from the port’s administrative ofOice. It will be a 125,000-square-foot light-industrial building capable of being customized for up to Oive tenants.

Abbi Russell, spokeswoman for the port, said the port’s leasable facilities have been 99 percent occupied for the last three years and the new building will create opportunities for more growth. “This is critical to achieving the mission of bringing economic beneOit to the community,” she said. Mike Schiller, director of business development at the port,

said staff has spoken with several interested parties about moving into the building, but as of yet there aren’t any committed tenants.

Schiller also said an extra incentive for manufacturers is the port’s status as a federal foreign trade zone.

That allows manufacturers to bring in raw materials which ordinarily might be taxed individually and at different rates and combine them into Oinished goods which are taxed after a sale is made. The zone is supervised by the U.S. Customs and Border Protection ofOice in Portland.

The building is currently under construction and is set to be complete by sometime next summer.

The port plans to rent the space at about $0.48 per square foot with a surcharge of $0.85 for per square foot for ofOice space. The Centennial Industrial Park was partly funded with a grant from the Washington State Department of Commerce. The

Centennial Industrial Building is being funded through revenue bonds.

Meanwhile, Hutchison Ports has signed an MOU with the Government of Ukraine for the development of Chornomorsk Port on the Black Sea. The MOU was signed by Clemence Cheng, Managing Director Hutchison Ports Europe, and Volodymyr Omelyan, the Ukrainian Minister of Infrastructure during a visit by the Minister to the Port of Felixstowe. The Minister was joined

by Ukrainian Ambassador to the UK, Natalia Galibarenko. Commenting on the agreement, Clemence Cheng, said: “We are delighted to sign this Memorandum of Understanding with the Government of Ukraine to develop container terminal facilities at Chornomorsk. We have long seen the potential for growth in container business in Ukraine and look forward to working together with the Ministry of Infrastructure to realise

our shared aim of developing world class port facilities to facilitate trade.”Minister Omelyan added: “I am glad that the world’s leading port operator enters Ukraine’s maritime market. Government is committed to Oinalize the agreement and to close the deal in 2017.”

Chornomorsk is one of the largest ports in the Black Sea handling a range of cargo including containers, ferries, general and bulk cargoes.

Situated in the south-western region of Ukraine 20km south of Odessa, Chornomorsk has established rail connections to the capital Kiev and existing skilled workforce.

Meanwhile, 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.

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Sargodha ASO confiscates foreign origin silk cloth, vehicle worth Rs 1.3m FAISALABAD: Sargodha Customs Anti-Smuggling Organization (ASO) has seized foreign origin art silk cloth along with Toyota Corolla car worth Rs1.6 million involved in duty/ taxes of Rs1.3 million.

Sources told Customs Today that Deputy Collector Rizwan khan received information regarding the smuggling of clothes from Nushara to Sargodha.

On this he establishe a team to foil the smuggling bid.

During the checking vehicles the team intercepted a vehicle bearing Registration No. RIB-184 near Shaeen chowk argodha.

Saturday, December 31, 2016

CUSTOMS BULLETIN

customs North Region collects Rs 685.83m sales tax till December 19 ISLAMABAD tARiQ DeRYA

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ustoms North Region collected Rs 685.83 million from December 1 to 19 durig the current Oiscal under the head of sales tax (ST) against the assigned target of Rs 541.68 million. The total assigned revenue collection target for the month of December is Rs 1,227.50 million. The North region comprises Customs Collectorate Islamabad, Gilgit Baltistan, Samberial and Peshawar. According to details, during the said period, the MCC Islamabad collected Rs 317.76 million under head of sales tax against the assigned revenue collection target of Rs 105.24 million. The Collectorate was assigned a target of Rs 423 million for December under head of sales tax. The sources said that during said period, the MCC Peshawar collected Rs 252.56 million under head of sales tax against the assigned revenue collection target of Rs 459.44 million. Sources said that Collectorate was assigned Rs 712 million revenue collection target under head of sales tax for month of December FY2016-17. The sources said that during above said period

the MCC Samberial collected Rs 9.68 million under head of sales tax against the assigned revenue collection target of Rs 1.33 million.

The Collectorate was assigned Rs 11 million revenue collection target for the month of December FY16-17.

The sources said that from

December 1 to 19, the MCC GilgitBaltistan collected Rs 105.83 million under head of sales tax against assigned target of Rs 24.33

million The Collectorate was assigned Rs 81.50 million target for December FY2016-17 under the head of sales tax.

customs values of linear alkyl benzene sulphonic acid revised KARACHI

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he Directorate General of Customs Valuation has revised the customs value of Linear Alkyl Benzene Sulphonic Acid (soft & hard type through Valuation Ruling No 999/2016 under Section 25-A of the Customs Act, 1969. Consequent upon representation by commercial importers, regarding revision of

Valuation Ruling No.880/2016 dated, 28-06-2016 for Linear Alkyl Benzene Sulphonic Acid (Soft & Hard type), an exercise was undertaken to redetermine the Customs Values of Linear Alkyl Benzene Sulphonic Acid (soft & hard type) in terms of Section 25A of the Customs Act, 1969.

Meeting with all the stakeholders including importers, local manufacturer, Pakistan Chemicals and Dyes Merchants Association and representatives from clearance Collectorates, was held on 16-122016 to discuss the current international prices of the

subject item. The commercial importers stated that the prices of subject items are showing down ward trend in the international markets whereas the local manufacturers stated that prices of raw materials have gone up in international market in last three months and requested to revise the value of Linear Alkyl Benzene Sulphonic Acid (soft & hard type) upward. The view point of all participants was heard in detail and considered to arrive at Customs value of Linear Alkyl Benzene Sulphonic Acid (Soft & Hard type). Valuation methods

provided in Section 25 of the Customs Act, 1969 were duly followed and applied sequentially to address the valuation issue at hand. Transaction value method provided in Sub-Section (1) of Section 25 was found inapplicable because it is generally known to all that majority of invoices produced at import stage are manipulated/fabricated and hence the requisite information required under the law was not available to arrive at the correct transaction value. Meanwhile, Directorate General of Customs Valuation has issued the reference

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values for sorbitol powder/solution This Directorate General has initiated an exercise to develop database values for different items wherein it has been observed that declarations are of wide range and do not correctly reOlect values of the items as traded in the international market. During the scrutiny of previous clearance data, it has been observed that sorbitol powder/solution 70% falling under PCT headings 3824.6000 are being assessed at different values and certain transactions are on very low side.