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pAkIStAN’S fIRSt INDepth NewSpApeR oN cuStoMS

Daily

Vol 1 Issue No. 253

Karachi, Thu December 3, 2015

MULTAN

IMRAN ALI

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he Model of Customs Collectorate Multan collected Rs 4,425.248 million against the set target of Rs 3,783 million in November during the current Piscal year.

OfPicial statistics show that net collection of customs duty exceeded in November as compared to previous month. Cus-

toms duties to the tune of Rs 984.147 million were collected by Multan Customs against the assigned target of Rs 1233.2 million for the month of November. Net collection of customs duty during Pirst Pive months of the Piscal year 2015-16 stood at Rs 3170.471 million. The Model of Customs Collectorate Multan attained 80% revenue collection target during November. Almost 8% increase in customs duty collection has been witnessed with revenue col-

Price Rs. 14.00

lection of Rs 914.624 million in the corresponding month of November. Almost 8% increase in revenue collection of customs duties has been linked to the increasing trend in clearance of imported items from the Multan Dry Port for the duration of November.

The Model of Customs Collectorate Multan collected Rs 3416.439 million revenue collections against target of Rs 2443.11 million from sales tax of import goods during the month of November.

Gwadar Customs foils bid to smuggle 1310kg hashish worth Rs 78.80m

No tax on locally manufactured goods, says Ishaq Dar

SBP allows use of message type MT 102 in PRISM system

PCA detects tax evasion of Rs 21m

by M/s Al Hafeez Electronics

RCCI inks letter of Cooperation with USAID-PREIA

The MCC Gwadar has foiled a major smuggling attempt and recovered | See pAge 02 |

Dar has said that no tax will be imposed on locally manufactured items | See pAge 03 |

SBP has decided to allow the use of message type MT 102 in Pakistan | See pAge 04 |

The PCA has detected duty/taxes evasion

by M/s Al Hafeez Electronics Karachi | See pAge 12 |

RCCI signed a letter of Co-operation with USAID, PREIA | See pAge 09 |

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RTO-III starts sending notices to new taxpayers Thursday, December 3, 2015

National

KARACHI: The Regional Tax Office-III has completed the process of sending tax notices to new taxpayers. Additional Commissioner Regional Tax Office-III Rana Bashir told Customs Today that all those persons, who were avoiding to pay tax, will be brought under tax net. He said that these notices were despatched to new payers during last week of November. He said we have already received instructions from FBR to achieve financial target by the end of current fiscal year. He said that during the first week of October RTO-III authorities despatched tax notices to atleast five thousand new tax payers.

gwadar customs foils bid to smuggle 1,310kg hashish worth Rs 78.80m

LAHORE

KARACHI

M hAYAt

AftAB chANNA

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ustoms and Tax House top bureaucracy seems fully prepared to receive and welcome Finance Minister and newly made chairman Federal Board of Revenue in Lahore.

The top officials’ of the Customs and RTOs including RTO, RTO-II and Larger Tax Payers put their heads together to make the officers encounter with the Finance Minister Ishaq dar and Chairman FBR Nisar Ahmad Khan. Sources told Customs Today said that central region Chief collector of customs Rozi Khan Burki and collector of Customs Mukarram Jah Ansari also visited the RTO and met the chief commissioners of RTO Tasneem Rehman to inquire about the preparations. The management of the Tax House orders a complete overhaul of the premises of the Tax House and presence of the FBR officer with their respective teams. The RTO management has deployed labor to clean up the stage, chairs and sofa while white wash and flooring of the RTO auditorium was also under took. The Finance Minister, chairman FBR and special assistant to prime minister will address the Inland Revenue Service and Customs Service officers at the RTO PCs Auditorium.

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he Model Customs Collectorate Gwadar has foiled a major smuggling attempt and recovered around 1310 kilograms of hashish (charas) worth Rs 78.80 million.

Deputy Collector (Preventive) Aftab Ullah Shah told Customs Today that the customs foiled the bid on a tip off received from Zahid Khokhar, Chief Collector Enorcement South, that huge quantity of foreign origne narcotics will be smuggled to Afghanistan through Quetta and RCD Highway to Karachi and then abroad.

“Saeed Akram, Collector of Customs MCC Gwadar, constituted a team in the supervision of Additional Collector Junaid Ahmed Memon, MCC Gwadar Deputy Collector Preventive Aftab Ullah Shah to intercept and foil the smuggling bid.” The team comprised Muhammad Saleem, Superintendent Preventive and staff of Mobile Squad Khurkhana Customs House Gaddani. The team held Naka of Khurkhara and on 1/12/15 at aroud 1100 hours a vehicle bearing registration no TKE-128 was seen coming from Quetta side which was signaled to stop, the deputy collector added. The vehicle was loaded with crates of apples. The initial search led to detection of charas in some of

customs, fBR officials ready to welcome Dar, chairman Nisar

the crates. Both the driver and cleaner of the vehicle were taken into custody and the vehicle was brougth inside Khurkhara check post for detail search. The detail

search of the vehicle recovery of 1310 kilograms of charas concealed in apples crates packed with rotten apples as covering material. two accused namely Hayat Khan and

Muhammad Naeem were arrested on the spot and FIR no 48/2015 dated 1.12.2015 has been lodged under section 6,7,8 c CNSA 1997 for further investigation.

fBR to defend imposition of Rs 5,000 tax on pIA employees’ tickets ISLAMABAD

M ARShAD

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he Federal Board of Revenue (FBR) will defend imposition of Rs 5,000 tax on air tickets for employees of Pakistan International Airlines (PIA) before the Senate Standing Committee. The Senate Committee will announce

the date for the meeting later.

A well-placed ofPicial source at the FBR told Customs Today that in January this year, PIA started collecting federal excise duty on free, subsidized domestic tickets being issued to its employees and their family members.

The duty was imposed on all the airline employees at the time of budget but the implementation was suspended in the PIA owing to the protest from the workers, but from January 15 its collection has been

started. FBR expected to collect around Rs 300 million from the newly introduced duty, the trade unions as well as PIA management have urged the government not to impose the duty as the employees, keeping in view the ever increasing inPlation, were facing Pinancial crunch. Then it was assumed that there were around 18,000 employees and if they had at least three members in the family the number comes to around 54,000. Similarly, there were around 36,000 retired

employees who also received subsidized, free travel facilities.

Around 114,000 free tickets were issued to employees and their family members during 2014 and if similar number of tickets were issued in the current year then the new tax collected on such tickets would come to around Rs 285 million. The Senate committee, Tuesday, declared the levy of this tax as an injustice on the PIA employees and decided to seek the clariPication from the FBR. In this regard, Senate

committee secretariat conPirmed to this scribe here that a notice for the above mentioned subject had been issued to FBR. The notice had called upon FBR chairman to get prepared for briefing the committee on the said issue, however, notice stated that date for next meeting of the committee would be informed later. It is pertinent to note here that Senate committee took notice of the issue on a public petition No-621 Piled by petitioner Kamran.

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Customs Tribunal chairman likely to hear cases on December 8 RAWAPLPINDI: The Excise and Taxation Department has started general holdup against the token tax defaulters and unregistered vehicles in three districts. According to the details, the excise conducted operation in Jehlam, Chakwal and Attock. While the department has decided to delay the operation against the token tax defaulters and unregistered vehicles in Rawalpindi districts till December 5 due to the upcoming local bodies election. Excise and Taxation Rawalpindi Director Tanveer Abbas Gondal has said that three teams are taking part in the general holdup in the three districts to collect outstanding dues from defaulter and capture the offender vehicles.

customs court postpones hearing of bail plea of suspected smuggler

Thursday December 3, 2015

National

No tax on locally manufactured goods, says Ishaq Dar

KARACHI

MuhAMMAD YouSAf www.customsbulletin.com

he Special Court of Customs Taxation and Anti-Smuggling adjourned until December 21 the bail confirmation plea of a suspect in a case pertaining to smuggling of electronic goods. Judge Syed Faiz Rasool Rashdi adjourned the hearing due to absence of the suspect’s counsel. According to the prosecution, Rangers personnel and Pakistan Customs’ Anti-Smuggling Organization intercepted a bus at Hub Chowki and recovered a huge quantity of smuggled air conditioners, hair trimmers and other home appliances worth Rs 6 million rupees.

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peshawar customs Intelligence seizes smuggled goods ISLAMABAD

ShAhID MINhAS

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irectorate Customs Intelligence and Investigation Peshawar has seized two containers loaded with smuggled goods near GT road Peshawar and arrested two accused on the spot.

According to details customs Intelligence and Investigation Peshawar has received about an attempt of smuggling could be made so the staff intercepted two containers during checking on the GT road having Rs 35 millions of smuggled goods included pencils, cigarettes, cloth, LEDs, misc electronics, TV kits, auto parts, body spray Havoc, body spray, DVD R, Cigarettes Milano, Pad Lock Two separate FIRs have been lodged against the smugglers.

Moreover customs Peshawar staff also seized two containers and arrested two accused.

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LAHORE

M hAYAt

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ederal Finance Minister Ishaq Dar has said that no tax will be imposed on locally manufactured items which have been produced from the imported goods.

Talking to newsmen after performing the inaugural ceremony of Language and Computer Centre of Jamia Hajveria at the Data Darbar complex here, he said that tax had been levied on the imported items only, adding that no tax would be imposed on the products prepared from imported goods.

The Finance Minister said the revenue generated from the regulatory tax would be spent on the development projects and welfare of the masses in all the four provinces.

Ishaq Dar said prices of the daily commodities in Islamabad and other provinces had been evaluated in the daily meeting of the National Price Monitoring Committee, adding the government had instructed the National Food Security and Research Ministry to review the prices so that common man should not be affected by the price hike.

He said, 2016 would be the year of culmination of the Zarb-e-Azb. To a question, the Minister said honourable return of the Internally Displaced Persons (IDPs) to their homes was the top priority of the government. Earlier, Federal Fi-

nance Minister Senator Ishaq Dar inaugurated the celebrations of the 972nd Urs of the saint Hazrat Ali Bin Usman Alhajveri (RA) popularly known as Data Gunj Bakhsh by laying traditional “Chadar” on the grave. The Federal minister also inaugurated the milk Sabeel on the occasion. Senator Ishaq Dar was accompanied by Provincial Ministers Mian Ata Muhammad Maneka, Bilal Yasin, PPP Leader Aziz-ur-Rehman Chan, Secretary Auqaf Department

finance Minister said the revenue generated from the regulatory tax would be spent on the development projects and welfare of the masses in all the four provinces

M/s Reckitt Benckiser pays Rs 4.1m evaded tax KARACHI

AftAB chANNA

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/s Reckitt Benckiser Pakistan Limited, after the Post Clearance Audit Karachi Directorate detected evasion of duties and taxes, has paid the evaded amount to the Model Customs Collectorate Ap-

praisement West. The sources told Customs Today that Directorate of Post Clearance Audit, Karachi, detected tax evasion to the tune of some Rs 4.1 million by M/s Reckitt Benckiser Pakistan Limited by illegally availing benefits customs concessions on import of LED tube lights and LED bulb.

According to sources, the PCA Directorate Karachi, on scrutiny and audit of import data found that M/s Reckitt Benckiser Pakistan Limited had imported LED T8 tube-

lights, LED bulbs through Model Customs Collectorate Appraisement West. The importer claimed benefits of Fifth Schedule. However, the Federal Board of Revenue has clarified that benefits of Fifth Schedule is for renewable energy technologies for LEDs with or without ballast with fittings.

In this regard, according to sources, the importer M/s Reckitt Benckiser Pakistan Limited was directed to pay the short-paid taxes and duties at the earliest.

Nayyar Iqbal, Director General (DG) Religious Affairs Dr Tahir Raza Baloch and administrator Data Darbar Complex Dr Noor Muhammad Awan. Strict security measures were adopted by the police for the security of guests and devotees during the Urs celebrations. Meanwhile, Customs and Tax House top bureaucracy seems fully prepared to receive and welcome Finance Minister and newly made chairman Federal Board of Revenue in Lahore.

cAt chairman to form new bench xisting Division Bench of Customs Appellate Tribunal, Islamabad, would become dysfunctional in a couple of weeks as Member Technical, Muhammad Yahya, is retiring on December 15. CAT Chairman Ghulam Murtaza had established a special division bench after Member Technical, Khalid Mehmood, was posted as MD of Overseas Employment Corporation.

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PIA flight operation to UAE going on smoothly Thursday, December 3, 2015

Business

ISLAMABAD - PIA Chairman has asked the concerned department to speed up efforts to upgrade the remaining aircraft to this version of ACAS. With reference to media reports regarding imposition of restrictions on the use of UAEs airspace without upgrading to new Airborne Collision Avoidance System (ACAS), PIA’s spokesman has clarified that airline’s flight operation to UAE is going on smoothly as all Boeing 777 and six A-320 of its fleet already have the new ACAS version installed. In a statement issued here on Tuesday he said that UAE authorities had imposed these restrictions giving three days notice to PIA .

Bulls ignite kSe session as 100 index gains 712 points KARACHI

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urning hot on second day of December, the Karachi Stock Exchange benchmark KSE100 index gained 712.34 points to reach at 32421.70 points level with positive change of 2.25 percent.

The market recorded the highest trading level of 32440.16 points and lowest level of 31672.23 points, with the total volume of

Asian shares swing on weak factory data HONG KONG

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115,418,700 shares, having Rs 6,823,170,346 value. As many as 330 companies were active; of which 262 advanced, 55 declined and 13 remained unchanged.

The three top traded companies were Bank of Punjab with a volume of 17,710,500 and price per share of 8.72, TRG Pakistan Limited with a volume 16,108,000 of price per share of 36.35 and Pak Elektron with a volume 13,473,000 of price per share of 63.08.

The top three advancers were Pace (Pak) Ltd with price per share 2.98, P.T.C.L.A with price per share of 18.57 and D.G.K.Cement XD

sian markets saw fresh volatility Wednesday, with Shanghai seeing sharp swings, as weak factory activity data highlighted weakness in the global economy but fuelled hopes central banks will stick to a loose monetary policy. The euro also held its own after rallying in New York as a surprisingly positive set of eurozone figures raised the possibility the European Central Bank will delay an expected stimulus boost.

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KARACHI

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tate Bank of Pakistan has decided to allow the use of message type MT 102 in Pakistan Real time Interbank Settlement Mechanism (PRISM) system, free of charge. The decision was taken in order to ensure timely interbank domestic transfer of home remittances under the

MULTAN

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tate minister for water and power, Abid Sher Ali, has said that the success of PML-N in recent local government elections reflects public’s trust on government’s policies especially the one in power sector. Addressing a news conference here on Tuesday, he said that the time was very near when all the promises made by the Prime Minister in 2013 would be fulfilled as loadshedding would end by 2017. He disclosed that 10,000 megawatt electricity would be added to national grid by the end of 2017 and the beginning of 2018. He said that the duration of loadshedding was up to 18 hours in the past but the government brought it as down as six hours in the cities and eight hours villages. He said that the government launched projects for installation of transmission lines which would be accomplished by 2016. He disclosed that projects to install transmission lines between Mityari and Lahore as well as Port Qasim and Faisalabad had been launched. The minister claimed that the government saved nation’s billions by reviving Nandipur Project.

“Over Rs31 billion was spent on the project and the nation would have to bear the loss of this amount besides paying another $ 160 million.

S share of 52.3.

The top three decliners were Pak Services with price per share of

151.84, Bata Pakistan with price per share of 1460 and Bhanero Textile XD per share of 215.

SBp allows use of message type Mt 102 in pRISM system

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LB polls results reflect public trust in govt

arrangement of Pakistan Remittances Initiative (PRI) Remitting banks availing this facility shall ensure that for remittances received in Pakistan on a working day from 9 am till 3 pm, the payment is transferred to the benePiciary bank via PRISM within two hours of the receipt of advice from abroad. For remittances received in Pakistan after 3 pm till 9 am next working day, the payment shall be transferred to the benePiciary bank by 11 am via PRISM. In case of holiday, the same shall be credited on the next working day before 11am. After receiv-

ing funds via PRISM, benePiciary banks shall ensure that their customers’ accounts are credited within 2 hours. Further, in case of any discrepancy or dispute, the benePiciary bank shall inform the remitting bank about the discrepancy, within two hours. The remitting bank shall rectify the discrepancy by the next working day. To ensure that full benePits of this facility reach the benePiciaries of home remittances, banks are also advised to take all necessary steps for implementation of the subject mechanism including.

flood-hit pakistan helps cut India's cotton glut MUMBAI

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akistan is buying more cotton than expected from India after Ploods cut its own crop to the smallest in over a decade, opening an opportunity for the world's biggest producer to ofPload its bulging stockpiles.

Farmers in India have struggled to Pind buyers over the past year af-

ter the world's top cotton consumer China cut import quotas to stimulate demand for its own Pibre. The problem has been further exacerbated by near record high Indian output.

But the recent Plurry of purchases

by Pakistan has pushed up cotton prices in India to above a state-Pixed support price in most regions, reducing the pressure on the government to buy from distressed farmers. India has contracted to export 2 million bales (1 bale = 170 kg) in

the marketing year that started on Oct. 1, with Pakistan buying half of that, Pive dealers told Reuters. Typically, China would account for more than 50 percent of India's shipments. "We were not expecting such kind of demand from Pakistan," Cotton Association of India President Dhiren Sheth said. "Pakistan could buy another 500,000 to 700,000 bales." According to industry sources, total cotton imports by Pakistan will more than triple this mar-

keting year, with India cornering a major share given lower transportation costs.

"Due to lower freight, India is the Pirst choice for buyers in Pakistan," said Shahzad Ali Khan, chairman of Pakistan Cotton Ginner's Association. India has signed to export cotton to its neighbour for 63-66 U.S. cents per lb, mainly via the Wagah land border in Punjab state, dealers said. This is higher than the 68 cents the country would have to pay to

ship in U.S. cargoes.

More exports by India could put a lid on U.S. cotton prices that have rallied on worries rains in some producing areas of the United States will hit output.

Pakistan's overall cotton imports are seen climbing to at least 4 million bales in the year that started on Aug. 1, from 1.2 million bales a year ago, said Saleem Saleh, acting secretary general of All Pakistan Textile Mills Association.

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ISLAMABAD SAJID IMtIAZ www.customsbulletin.com

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S private sector supports deepening and strengthening US-Pakistan commercial relations. This is a strategic relationship and the US-Pakistan Business Council (USPBC) will continue to do utmost efforts to enhance economic relationship between the two countries.

The council has been providing a forum for dialogue to American companies operating in or exploring business opportunities in Pakistan for the last 13 years.

These views were expressed by executive director of US-Pakistan Business Council Esperanza Gomez Jelalian during an exclusive interview with Customs Today, Gomez Jelalian said that “we strongly support a reinvigorated USPakistan Strategic Dialogue and applaud the shared commitment of both governments to deepen bilateral economic, trade, and investment cooperation.” USPBC strongly supports bilateral talks under the US-Pakistan Trade and Investment Framework Agreement (TIFA) and any efforts of both governments to strengthen cooperation on commercial priorities, especially in areas to promote private sector investment and economic growth.

USPBC welcomes efforts of the US and Pakistani governments to invite the private sector in both countries to play a constructive role in this dialogue. We look forward to working with government ofPicials, in consultation with business stakeholders, to help identify emerging issues in the bilateral commercial relationship and proactively seek solutions and set benchmarks for tracking progress.

The United States is Pakistan’s largest trading partner, with two-way trade at $5.1 billion and 16% of Pakistan’s exports going to the US in the last year. The United States also remains one of the top sources of foreign direct investment to Pakistan.

US Chamber of Commerce and the USPBC strongly support the Generalized System of Preferences (GSP) program, which has provided economic growth in more than 120 developing countries by providing access to the US market for select goods. The GSP program provides duty-free treatment for about 3,500 products from Pakistan. Eligible products in the GSP program include, many manufactured items and inputs, jewelry, many agricultural products, chemicals, minerals, and marble.

USPBC supports US government efforts to expand Pakistan’s exports through the GSP program. USPBC welcomes Pakistan’s efforts to continue to liberalize trade to spur economic

growth, investment and improve competitiveness of the country’s industry. We applaud efforts to educate Pakistani business organizations and its members on how to increase Pakistan’s use of duty-free opportunities, such as the GSP program. In an increasingly competitive global environment, Pakistan also must actively invest in its competitiveness, Jelalian emphasized.

USPBC has led trade missions to Pakistan in previous years and hopes to organize a visit in 2016. We organize trade missions to identify economic opportunities in the country and areas of increased engagement between the American and Pakistani business organizations. In the past year, we had productive meetings with government ofPicials and key leading business leaders, while expressing the views of the American business community on a range of industry issues impacting the US-Pakistan commercial relationship. Business organizations are increasingly playing a more pivotal role in public policy in Pakistan. We believe the private sector is uniquely positioned to provide insight on policy priorities that can lead to faster economic growth and job creation in Pakistan. USPBC represents over 30 US businesses with investments and operations in Pakistan, including a number of the world’s leading multinational corporations.

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n n y e g f e n l e o n S n s

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Thursday, December 3, 2015

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Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDItoRIAL

Need to increase pak, Indian trade

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ndia is the biggest country in South Asia, but it has been refusing to hold talks with Pakistan on economy, peace and stability in this region since the Bharatiya Janata Party government came into power. The Indian government has various excusesto avoid peace talks one of which is the Kashmir issue.

As a result, mistrust and unwanted hostilities between the two countries are on the rise.

Though the trade between the two neighbouring countries has been improvingand has reached $3 billion last year – which is far less than its potential — both the countries are losing billions of rupees revenuesin terms of customs duties and taxes due to thriving illegal trade. It is unfortunate that the Indian leadership is adamant and incorrigible, not willing to change its settled position at the cost of business, trade and investment. Pakistan is technologically advance country and both the countries as it has one of the advanced nuclear programme, is emerging as a potential manufacturer of fighter aircraft and as well has the developed IT industry. Both the countries can benefit from each other’s experience.

The two countries are interlinked through rail road network for being located in the same region. India can enhance its trade with central Asian states and beyond by establishing cordial relations with Pakistan whereas Pakistan can help India get access to Afghanistan and the other central Asian states. According to a study by the World Bank, Pakistan has the potential to enhance its trade with India by more than 200 percent once the bottlenecks are removed. On another note, India will be able to send its cargo containers to Europe at fast speed to Europe and other parts of the world by road instead of sea. Pakistan is willing to become gateway to regional trade and hub of economic development.

India has started making efforts to get access to Afghanistan through Iranian port city of Chabahar and import oil and gas from Iran.

India has also signed a border agreement with Bangladesh, removing stumbling blocks in the way of relations between the two countries. If India coordinateswith Pakistan and China and find its share in the huge infrastructure planin the region, the fate of this region will be changed.

Need to boost housing industry T

LAHORE

DR AftAB AfZAL

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he housing industry has the potential to act as an engine of growth for industrial development in the country as it has linkages with around 40 other industries. It needs special attention of the government in terms of concessions in taxes and duties on the import of construction machinery. The importance of the industry can be judged by the fact that 3.6 million individuals are added to its population every year, making Pakistan as the sixth largest populated country in the world.

Housing is the principal need of every individual, besides food

and other necessities of life.

Though the housing industry is thriving in the country and has become one of the most lucrative businesses in recent years, it is the sector which can ensure sustainable economic growth with growing population at a fast rate and is likely to become the largest Muslim country in the world by 2050 crossing Indonesia. The country faces shortage of housing facilities, especially in low-income groups.

According to statistics, the country is facing a massive shortage of around nine million units and a large chunk of population belongs to economically disadvantaged members of the lower middle classes. On another note, the process of ur-

banisation has been started at a fast rate. Cities’ population is swelling, resulting in the mushroom growth of slums and low grade settlements in major metropolitan areas. The federal and the provincial governments have introduced various housing finance schemes which also include construction of housing for low income families. The State Bank of Pakistan has advised banks to promote housing finance as the provision of affordable housing and mortgage finances are paramount to cope with growing cities. The government is taking various steps to come up with affordable solutions and SBP is actively involved in supporting the housing sector. If the government is

sincere in economic growth, it has to take urgent steps to resolve the housing problems as the fast process of urbanisation could create serious housing challenges for the coming generations. There are 10 large cities in Pakistan, including Karachi and Lahore, which constitute 62 percent of the total urban population. The city population is growing at the rate of 30 percent.The World Bank estimates that the gap between supply and demand is increasing by more than 300,000 housing units per year whereas the country is already facing a backlog of around ten million housing units. The solution to housing problems can make Pakistan a better place to live.

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Russia to curb Ukraine imports over EU pact BRUSSELS: Russia is likely to penalise Ukrainian imports from January after EU-brokered talks failed to find a compromise on Tuesday, exactly a month before the launch of an EU-Ukraine free trade pact that Russia opposes.

“It is a very probable scenario that there will not be an agreement before Jan. 1 and the non-preferential trade regime will be introduced,” Russian Economy Minister Alexei Ulyukayev told reporters after the talks in Brussels, saying that existing preferential treatment of Ukrainian imports would probably end.

After the latest round of negotiations, the three parties agreed to keep talking. But time is running out before Ukraine and the European Union drop mutual trade barriers under a deal that has been at the root of wider confrontation with Moscow.

Indiana chamber holds engineering expo for domestic, foreign visitors he International Engineering Technology Sourcing Show (IETSS) being organized by the Chamber of Industrial and Commercial Undertakings (CICU) at GLADA ground, Chandigarh Road received a large number of visitors from India and abroad on the opening day.

The highlight of the show was the visit of a business delegation from Sri

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Lanka and the presence of diplomats from three African countries, Tunisia, Zambia and Niger. The event began with the ceremonial ribbon cutting by irrigation minister Sharanjeet Dhillon, who was accompanied by advisor to chief minister Maheshinder Singh Grewal.

Dignitaries visited the stalls put up by local industrialists. Attractions included engineering items like auto components, hand tools, CNC machines, machine tool manufacturing machinery, robotics, textile machinery and agro machinery. Along with stalls of local manufacturers many companies from other cities are also showcasing their products this time. Some Chinese companies dealing in automatic machinery have also put up stalls at the four-day event. In the afternoon, entrepreneurs from Punjab met a 20-member business delegation from Sri Lanka at the venue. The meeting was chaired by industry minister Madan Mohan Mittal. CICU president Avtar Singh and general secretary Upkar Singh Ahuja were also present on the occasion.—CB Report

Thursday December 3, 2015

Chambers

RccI inks letter of cooperation with uSAID-pReIA R

ISLAMABAD

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awalpindi Chamber of Commerce and Industry (RCCI) signed a letter of Co-operation with USAID, Pakistan Regional Economic Integration Activity (PREIA).

President RCCI Mian Humayun Parvez called it a great step and said that this will provide access to Afghanistan and Central Asian Republics (CARs) through regional economic integration.

He said that our Trade associations, logistics companies, business associations, Government ministries and regional counter-parts will get an advantage and it will help and facilitate our local traders and business men to explore business opportunities in the regional markets.

In this regard a signing ceremony will be held today and Governor Punjab Malik Muhammad RaPique Rajwana is likely to be the chief guest. After the signing ceremony, President Mian Humayun Parvez will address a news conference A well-placed source privy to President RCCI Humayun Parvez told this scribe her on Sunday that

goal of Pakistan Regional Economic Integration Activity (PREIA) is to increase access to international markets in order to enhance Pakistan’s regional economic integration with its neighbors.

By strengthening public and private sector capacities to implement trade policy reform and improving trade promotion and facilitation, PREIA aims to improve the trade environment, resulting in increased

Blount chamber to support small businesses

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NEW YORK

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lount Chamber of of Commerce is reminding shoppers to “shop small” this holiday season through Small Business Saturday. Nineteen small businesses in Blount County elected to participate in the sixth annual Small Business Saturday, which traditionally falls on the Saturday after Thanksgiving.

Founded by American Express in 2010, Small Business Saturday is a day to celebrate the small businesses that help support neighborhoods.

“We feel like this is a great way to make people aware of shopping at local businesses during one of the busiest shopping days of the year,” said Blount Partnership President Bryan Daniels. “As the voice of small businesses, we want to do all we can to help promote our many

small businesses.”

In addition, the Chamber reminds shoppers to shop local on Black Friday, Nov. 27. To combat the web shoppers on Cyber-Monday, Nov. 30, some retailers are holding a, “Cyder-Monday,” as they are offering free hot apple cider to their patrons who visit in-store.

Leading the way on “Cyder Monday” is Little River Trading Co. which is offering a free handmade mug courtesy of Maryville’s Studio 212 with a $150 purchase. There will be “hot apple cyder,” along with 20% off Columbia, Prana and The North Face Footwear.

Meanwhile, The Shenango Valley Chamber of Commerce will be seeking a new course for its future as the organization is exiting a contract for its administration.

The chamber has been administered by the Lawrence County Chamber of Commerce for more

than Pive years under a working contract. Terms of the contract allow the Shenango Valley Chamber to sever its ties with the Lawrence County Chamber after giving a minimum 30-day notice.

Representatives of both chambers said the Lawrence County Chamber will end its administration effective Dec. 31. The initial deal was reached after the local chamber ran into Piscal difPiculties.

Ending the relationship wasn’t a matter of being dissatisPied with Lawrence County Chamber services, said Ron McCall, president of the Shenango Valley Chamber.

“We’re just looking to go in a new direction,’’ McCall said.

He credited Bob McCracken, executive director of the Lawrence County Chamber, with serving the local chamber. “Bob has done a great job in bringing people together,’’ McCall said.

regional trade and transit Plows.

The new Activity has planned focus areas including improving the strengthening private sector and civil society’s engagement in trade policy-making and its reform; improving regional trade and transit facilitation by Pakistan Customs; and improving regional business to business linkages.

The Pirst two areas support broad improvements to the business enabling environment in Pakistan regarding trade, and the others support improved capacity for Pakistani businesses to access regional markets. Trade associations, logistics Pirms, business associations, GOP ministries and regional counterparts will increase access to markets through the negotiation and implementation of treaties and trade facilitation measures.

As a result of assistance provided through PREIA, Pakistan will have improved capacity in the analysis of trade policy choices, and the private sector will be recognized as a key stakeholder in both policy making and implementation, with the ultimate aim of creating jobs and raising incomes.

Ridgefield chamber launches online survey idgefield Chamber of Commerce has launched an online survey seeking feedback about residents’ and shoppers’ experiences living, working and visiting in town. The 15-minute survey is available at the Chamber of Commerce website and can be taken until Dec. 13.

While respondents’ names and answers will be kept confidential, they will also be automatically entered into a raffle for a variety of prizes. The prizes include a gift basket from The Little House Shoppe ($100 value), a gift basket from nancy O ($100 value), a $100 gift card to Craig’s Fine Jewelry, three prizes of $500 toward “Design Your Own Ring” at Addessi Jewelers (ring value must be at least $1,000) and several others.—CB Report

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Two women charged with smuggling gold worth Rs 9 million Thursday December 3, 2015

World

DUBAI: Two women have been arrested at the airport here for allegedly trying to smuggle into the country gold valued at about Rs 90 lakh.

The accused were intercepted by customs officials after their arrival from Dubai here on Thursday.

They were allegedly carrying 1.7 kgs of gold each, Vinayak Azad, Additional Commissioner of customs at the airport, said today.

He said they had hidden gold in their clothes.

The gold, which is assessed to be worth Rs 90 lakh, has been seized and the duo have been arrested.

canadian man pleads guilty to smuggling turtles

OTTAWA

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Canadian man caught with dozens of turtles in his pants has pleaded guilty to

smuggling in a federal court in Michigan. Kai Xu has pleaded guilty to smuggling or attempting to smuggle thousands of turtles from the southeastern area of the state.

He was caught last year at a border crossing with 51 snappers taped to his body. Xu ordered turtles online and would travel to the U.S. to

ship them to China or return with them to Canada.

The 27-year-old University of Waterloo student faces a maximum penalty of 10 years in prison after appearing in court in Ann Arbor, Mich. It’s illegal to export wildlife from the U.S. without a license from the government.

According to American court documents, officers with the Canada Border Services Agency intercepted Xu last August as he attempted to cross into Windsor, Ont., from Detroit. Xu was found to have 41 live turtles strapped to his legs and 10 hidden between his legs, according to an affidavit from a special agent with the U.S. Fish and Wildlife Service which outlined the criminal complaint. Canadian authorities seized the turtles, which included North American varieties such as eastern box turtles, redeared sliders and diamondback terrapins some of which sell for $800 each and turned them over to American officials.

uS: cedar Rapids man accused of taiwan customs smuggling drugs in body again seizes smuggled randon Wilson just can’t stop of crack cocaine and marijuana in medical materials hiding drugs in his rectum. Wilson’s rectum. Wilson also had time this year, more than $1,700 cash on him. worth Nt$1 million Wilson,For26,thehassecond been arrested and The crack cocaine which weighed

ustoms at Taiwan Taoyuan International Airport on Sunday intercepted a shipment of smuggled medical materials at Terminal 2, estimated to be worth NT$1 million (US$30,460), and charged a man in terms of the Pharmaceutical Affairs Act. Senior customs officials said the most commonly seen aesthetic medicine product being smuggled into the nation is hyaluronic acid, followed by placentas and botulinum.

Aesthetic medicine products in some other countries cost about a quarter of what they do in Taiwan, the official said, adding that most of the smuggled items are manufactured in South Korea and Japan. Aesthetic medicine products are tightly controlled in Taiwan, with patients requiring a prescription before a product can be obtained. —CB Report

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accused of hiding plastic bags of drugs in his rectum. The latest incident is alleged to have occurred on Nov. 29. According to a Linn County Attorney’s Office criminal complaint, Wilson was arrested on an active arrest warrant and taken to the Linn County Jail. At the jail, officers discovered 51 plastic bags

more than seven grams did not have a drug tax stamp attached, according to authorities. Wilson has been charged with possession with intent to deliver crack cocaine and Iowa drug tax stamp violation. In a previous incident in February, Wilson was charged with possession. —CB Report

hk customs nabs three for cheating chinese tourist HONG KONG

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mainland tourist was allegedly cheated out of HK$50,000 after purchasing two bottles of medicine that actually cost HK$60, according to Hong Kong Customs. The amount was more than 800 times the price the victim was originally told, according to a customs source with knowledge of the investigation. The woman, who arrived from Guangdong province last week for a sightseeing trip, lodged a complaint that led customs ofPicers to arrest three employees of a drug store in Mong Kok on Sunday night.

The three Hongkongers could face prosecution under the Trade Descriptions Ordinance, which carries a maximum penalty of Pive years’ imprisonment and a HK$500,000 Pine, according to the

source. The suspects, aged between 19 and 22, were released on bail yesterday pending further investigation. “Initial investigation showed that the shop was also involved in at least two other complaints over similar malpractice,” the source said.

He said one of the complaints was Piled by another mainland woman in September and the other was lodged by a Taiwanese man earlier this month. No one had been arrested in connection with the two cases. The latest case happened when the woman, in her 50s, had joined a mainland tour group to visit the city and gone shopping in Mong Kok on Sunday afternoon. She was conned when she entered a shop on Sai Yeung Choi Street South to buy two bottles of Ricqles peppermint cure. She claimed she was told the two bottles cost HK$60 in total. “After the victim handed over her credit card for payment, it was charged for HK$50,000,” the source said. When she questioned the extortionate payment.

Malaysia narcotic police nab couple with 1,100 meth pills

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29-year-old woman was arrested for possession of 1,100 methamphetamine pills worth more than RM27,000 in an operation at Kampung Kijang near Pantai Cahaya Bulan here on Sunday. State narcotic chief Superintendent Mit Emong said police arrested the 29-year-old wife during a raid at their home in Kampung Kijang about 2.30pm.“During the raid, police seized six packages containing

the pills. Her 38-year-old husband was detained after he surrendered himself to the police several hours later,” he told a press conference here yesterday. Mit said investigation showed that the drugs were brought in from a neighbouring country for distribution in Kota Baru areas. He said police believed that the man, who tested positive and had two criminal records was a member of a drug syndicate. “The two have been remanded for seven days starting today to facilitate police investigation,” he said.—CB Report

Indo-Bangla cattle smuggling down from 2.2m to 0.45m

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NEW DELHI

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arendra Modi government’s efforts to drastically bring down incidents of cattlesmuggling along the IndiaBangladesh border have paid off, with just 0.45 million cattle illegally exported to Bangladesh this year,

from a high of 2.2 million in 2013.

Modi, who was the BJP’s prime ministerial candidiate, had repeatedly talked of an increase in meat exports, euphemistically calling it “pink revolution”, while campaigning for the Lok Sabha elections 2014 and even prior to it.

The issue of cattle-smuggling into Bangladesh, which shares a 2,200-km border with India , has

been raised repeatedly by the BJP and RSS affiliates. A report in The Hindu quoted Border Security Force (BSF) Director-General D K Pathak as saying: “Around 22 lakh heads of cattle were sold in 2013, 18 lakh in 2014, but only 4.5 lakh in 2015.” He was citing figures from the cattle market (haat) in Bangladesh. The illegal trade, estimated at about $600 million annu-

ally, is considered legal by Bangladesh. In the first six months of 2015, BSF soldiers had seized 90,000 cattle and caught about 400 smugglers both Indians and Bangladeshis as reported. The crackdown has hit Bangladesh hard in many ways: Slaughterhouses, beef-processing units, tanneries and bone-crushing units have all been affected.

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TEN confirms long-term suezmax timecharter ATHENS: Tsakos Energy Navigation (TEN) confirmed that it has fixed one of its suezmax tankers on a “long-term” timecharter to “to a major oil concern”.

Last week, brokers reported TEN’s suezmax Silia T had been fixed to Russia’s Litasco Group for 18 months at $34,000 daily. The charter period will commence in December after the vessel has completed its current voyage, TEN said today.

In early November, broker reports suggested Koch Logistics had been set to take the tanker for the same duration and at the same rate, but the deal failed.

TEN says it expects the new timecharter to generate around $18.5m in total gross revenues, which is in line with the daily rate cited by brokers.

Annual shipments of notebooks expected to decline in 2015 nnual shipments of notebooks are expected to decline significantly this year despite vendors’ best efforts during the year’s second half. This dismal result is attributed to the impact of weak shipments in the year’s first half and challenges in inventory reduction.

According to global market research firm TrendForce, total notebook shipments for 2015 will reach around 164.4 million units, down 6.4% year on year.

“This year has been an extraordinary tough for the notebook market,” said TrendForce notebook analyst Anita Wang. “However shipments will recover in 2016, when more branded vendors will be entering the market, including Xiaomi and Huawei. Consumers have delayed buying notebooks due to the free upgrade of Windows 10 this year, but this slump in purchases will dissipate by next year; and new products released by new market entrants will spur the market. We estimate that total notebook shipments for 2016 will increase a little by 1% year on year to 165 million units.”—CB Report

Ports & Shipping

govt releases Rs 56.9m for ports and shipping projects

nion Minister for Shipping, Road Transport and Highways Nitin Gadkari on Saturday said the profitability of the Indian port sector by the end of current year will reach around Rs.6,000 crore.

The profit would be invested for creating assets to spur up growth, he said.

Addressing a session at the PHD Chamber of Commerce and Industry here, the minister said in the next five years the contribution of highways and shipping sector to national GDP would rise to two percent from current insignificant level.

With poised growth, the roads, highways and shipping sectors would be able to create 50 lakh employment opportunities, he said.—CB Report

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Shipment delays follow shooting down of Russian warplane xports of grain are leaving Russia’s Azov Sea for Turkey again after suffering delays in the wake of Turkey’s shooting-down of a Russian warplane, but some traders remain nervy about striking new deals, according to industry sources.

The continuation of shipments highlights the countries’ mutual dependence in international trade. Turkey vies with Egypt to be the largest importer of Russian wheat, while Russia’s boycott of some EU products has left it reliant on imports of fruit and vegetables from Turkey.

Gregory Souris, director of Actava Trading DMCC, a Dubai-based brokerage, said Actava finalized customs documents on Thursday for multiple ships waiting to take grain to Turkey from the port of Yeysk on the Azov Sea. The vessels hadn’t been granted papers earlier this week, he said, adding that the holdups only applied to ships bound for Turkey. “It seems to be they are now clearing the vessels,” he said.

Erol Yahya, Executive Director of Turkish milling group Intermil-Un, said a 3,000 ton vessel carrying wheat for the company left the Azov Sea Thursday after being delayed in the wake of the destruction of the Russian jet on Tuesday. Still, the situation remains uncertain with tensions between the countries running high. —CB Report

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Indian ports sector to make Rs 60b profit by 2016

Thursday December 3, 2015

ISLAMABAD

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he government has so far released Rs56.870 million for various ongoing and new development projects of the Ports and Shipping out of the total budget of Rs12,000 million for the division for Piscal year 2015-16, according to the latest data.

The amount has been released under the Public Sector Develop-

ment Programme (PSDP) 2015-16 approved by the government in the beginning of this Piscal year. Out of the funds released so far, Rs50 million have been provided for the construction of Eastbay Express Way (EPEC) for which Rs.4700 million have been approved for current Piscal year. The total cost of this project has been Pixed at Rs14,061 million, with foreign component of Rs13,542, according to the ofPicial data. The data revealed that so far Rs40 million have been spent on the project upto the beginning of the current Piscal year. The government

also released Rs2.970 million for reactivation of Hatchery Complex for production of Pish and shrimp seed in Karachi. The government has approved budget of Rs.10 million for this project in the Piscal year 201516. The total cost of this project is Rs406 million, out of which just Rs01 million have been spent up to June 2015. The another project, for which the government has released funds of Rs3.9 million is up gradation and accreditation of quality control laboratories of Marine Fisheries Department for environmental Contaminants Karachi.

pakistan exports to uAe grow by 10%

H DUABI

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abib Ahmed briefs Mohammed Helal Al Muhairi on products exhibited by the visiting delegation from Pakistan’s Sialkot Chamber of Commerce and Industry in Abu Dhabi on Sunday.

Asif Ali Khan Durrani is also seen.

The UAE imports perishable vegetables, fruits, meat, poultry, rice, engineering and electrical products, textiles and ICT products from Pak-

istan. Abu Dhabi: Pakistan is targeting a 10 per cent growth in exports to the UAE, which reached $3 billion in Pinancial year 2014-15, according to a top diplomat.

“We are targeting 10 per cent growth in our exports to the UAE during 2015-16,” Asif Ali Khan Durrani, Pakistan’s Ambassador to the UAE, told Khaleej Times on the sidelines of an event at the Abu Dhabi Chamber of Commerce and Industry (ADCCI) to host a trade delegation from the Sialkot Chamber of Commerce and Industry (SCCI).

The ambassador said year-onyear bilateral trade volume has grown 11 per cent to $9 billion in the last two years, but enormous potential exists to improve these numbers.

“In order to capitalise on growth potential, Pakistan embassy is more active to invite more trade delegations, aiming for greater participation in exhibitions and trade shows in the UAE,” Durrani said.

He said the ADCCI visit was part of this initiative and more such delegations are lined up for the future.

“These will boost interaction between business communities and promote greater visibility of Pakistani products,” Durrani said.

The UAE imports perishable vegetables, fruits, meat, poultry, rice, engineering and electrical products, textiles and ICT products from Pakistan. Though no major item has been added to the traditional exports list, there has been a rise in the volume of exports recently.

The visit by the SCCI is an unprecedented visit by any Pakistani trade body, Durrani said.

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FST orders ADC Naureen to appear before tribunal on 7th ISLAMABAD: Federal Service Tribunal (FST) to resume hearing of cases seeking appearance of Additional Collector Customs, Naureen Ahmad Tarar before the tribunal on 7th December. FST division bench comprising members, Muhammad Arshad Bhatti and Muhammad Javed Iqbal Kasi, would hear the cases in which the additional collector had filed an application demanding permission of not to appear before the tribunal till February 2016. However, the tribunal had set the date of December seven to resume hearing of the case and hear the case and sought both sides to be in the court on the hearing day for proceedings.

Thursday, December 3, 2015

CUSTOMS BULLETIN

pcA detects tax evasion of Rs 21m by M/s Al hafeez electronics KARACHI AftAB chANNA

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he Post Clearance Audit (PCA) has detected duty/taxes evasion by M/s Al Hafeez Electronics Karachi to the tune of Rs 21 million on import of LED lights by claiming inadmissible benePits of Fifth Schedule.

In this regard, the PCA has served an audit observation on M/s AlHafeez Electronics Karachi.

According to the sources, the PCA while on scrutiny of import data found that the company imported LED lights, LED lights with Pitting and Pixtures made of aluminium, glass, stainless steel, plastic, brass and Led bulb etc., which are without converter/driver of the corresponding quantity of LED lights, through Model Customs Collectorate Appraisement-West and claimed the benePits of Fifth Schedule. However the exemptions are only available to SMD, LEDs with or without ballast with Pittings and Pixtures for promotion of the renewable energy technologies.

There is undeniable proof that the imported lights and Pixtures are not for solar use with the renewable

energy sources like solar energy or wind energy. Therefore, these im-

ports are not covered under the claimed notiPications.

And hence, the importer M/s AlHafeez Electronics Traders, Karachi

has been instructed to pay the evaded amount at the earliest.

Intelligence Director Saud Imran visits Sadiqabad office MULTAN

IMRAN ALI

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irector Customs Intelligence and Investigation Saud Imran visited the newly under construction building of Customs Intelligence Sadiqabad ofPice.

Additional Director Nisar Ahmad along with Director Saud Imran visited the Sadiqabad region to see the newly proposed strate-

gic check posts for the Customs Intelligence in order to curtail smuggling from this route. Director Saud Imran will also chalk out new plans in the region of Sadiqabad to thwart smuggling attempts of smugglers. Director Saud Imran is ofPicially visiting the new building of Customs Intelligence and Investigation where construction work is under process. Customs Intelligence and Investigation is building new ofPice of Customs in Sadiqabad region to curb smuggling. Pakistan Tobacco Company has sponsored Pinancially to Customs for building new ofPice in the

Sadiqabad region and for this purpose they have given almost 3.5 million for the construction of their new ofPice in the Sadiqabad area. Customs Intelligence and Investigation have captured huge quantity of smuggled cigarettes from region in a last few years and PTC are also sponsoring Customs to curtail smuggling of Cigarettes from area which caused them billions of loss in case of smuggling.

Construction work of the new building of Customs Intelligence and Investigation Sadiqabad region is rapidly moving towards completion and it will be inaugu-

rated soon after completion of its building work. Director Saud Imran stressed that if we Pill out leakage of smuggled goods then movement of smugglers will be limited and he also directed Customs intelligence staff to continue strict vigilance in order to restraint smuggling of non-duty paid items further. Additional Director Nisar Ahmad has briefed Director Saud Imran about newly under construct building of Customs and discuss strategic plan to take further measures against smuggling. Both ofPicers comprehensively discuss the possible plan to curb menace

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

of smuggling. Meanwhile, The Customs Intelligence and Investigation impounded a non-customs paid car worth Rs 1.2 million after a continuous chase of three hours but the driver managed to escape by making the use of darkness.

As per details, Additional Director Nisar Ahmad formed a special team on a tip-off, which ceased a car on Tonsa Biradge but the driver did not stop the car and tried to flee. The customs team followed the car but the driver had been made a run on different deserted areas and roads for three hours.