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pAkiSTAN’S FirST iNDepTH NewSpAper oN CuSTomS

Daily

Vol 1 Issue No. 255

Karachi, Sat December 5, 2015

KARACHI

AFTAB CHANNA

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he Model Customs Collectorate Preventive has collected some Rs 44.8 billion in wake of duty/taxes during November, 2015. According to the statistics, the Preventive collected revenue of Rs 1,144.36 million under the head of

Price Rs. 14.00

customs duty out of which Rs 3.16 million was issued as refund/rebate. And, under the head of sales tax, it collected Rs 36,398.58 million. Moreover, Rs 5,082.22 million was collected under head of income tax in November 2015, besides collecting Rs 2,206.78 million as the federal excise duty. Meanwhile, The staff of the Model Customs Collectorate Preventive has arrested an ofQicial of the Pakistan International Airlines (PIA) and recovered 1,264 cellular phones and 10 bottles of foreign liquor from his possession at the Jinnah International Airport Karachi.

Sources told Customs Today that the customs authorities intercepted a PIA employee namely Fida Hussain who landed at the airport from a PIA Qlight from Turbat.

PCA unearths tax evasion of Rs 300 million in November

Peshawar customs collects Rs 8667 million in November

Dar holds meeting to finalise modalities for Exim bank launching

Customs seizes 162 drums of HSD oil worth Rs 12 million

FBR’s decision to impose RD to promote smuggling, trigger inflation

The Customs Directorate of PCA has detected evasion of taxes/duties | See pAge 02 |

MCC Peshawar has collected Rs 8667m under the head of various duty collections | See pAge 03 |

Modalities and various steps necessary for early operationalisation | See pAge 04 |

Custom Intelligence has seized a Mazda loaded with 162 drums carrying 6800 liters | See pAge 12 |

President of KCCI Younus Bashir has expressed deep concern over FBR’s | See pAge 09 |

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3,400 deportees still in FIA custody Saturday, December 5, 2015

National

LAHORE: The Federal Investigation Agency (FIA) has arrested 3,400 persons who are direct or indirect victims of human smuggling in six months, including 13 women’s and six couples. The FIA source told Customs Today that during the last six months, 6,103 persons had deported from the different countries who were smuggled by the Pakistani human traffickers. After the investigations, 3,400 people are still in the custody of the FIA and while other victims are released. Source said that the persons were deported from London, Spain, Italy, South Africa and other countries, adding that the prime minister has ordered stern measures against human smugglers.

pCA unearths tax evasion of rs 300 million in November

LAHORE

KARACHI

m HAYAT

AFTAB CHANNA

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ederal Minister for Finance, Revenue, Statistics and Privatization, Senator Muhammad Ishaq Dar chaired a meeting with representatives of Exchange Companies here on Thursday.

State Bank of Pakistan (SBP) Governor Ashraf Mahmood Wathra and other SBP officials attended the meeting. While, the representatives of exchange companies briefed the Finance Minister about the issues faced by them and also discussed in detail the trends and developments in foreign exchange market.

The meeting noted that the external account of Pakistan is stable on the back of lower commodity prices, healthy workers’ remittances, and continued support from the international financial institutions. As a result of these developments and the overall macroeconomic stability achieved by the Government in the last two years, the country’s foreign exchange reserves have reached an all-time high level of USD 20.44 billion. The participants agreed that in the backdrop of stable outlook in the external account, the recent exchange rate fluctuations in the kerb market are not justified.

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he Customs Directorate of Post Clearance Audit has detected evasion of taxes/duties to the tune of Rs 300.406 million in the month of November 2015. According to sources, the PCA, under the supervision of its Director Gul Rehman, had detected some 37 cases of tax evasion in just a month. In these cases, the audit observations of some 27 cases while contravention reports for 10 cases have been issued and the importers who brought loss to the national exchequer are directed to pay the short paid amount at the earliest, sources added. “There are cases of evasion through misclassification of PCT heading and non application of Valuation Ruling No 661/2014 dated March 29, 2014, non-application of Valuation Ruling No 654/2014 dated March 27, 2014 (sodium hydroxide, caustic soda), misuse of SRO 565(I)/2006 dated June 5, 2006, misuse of fifth schedule, inadmissible concessions of section 148 while importing Q mobile phones and misuse of SRO 678(I)/2004 dated August 7, 2004” The countries of origin of the imports are China, Japan, United Kingdom, European Union, Germany, Korea, Ukrainian, Singapore,

Dar meets representatives of exchange companies

Malaysia, France, United States, Italy, Oman, Saudi Arabia, Korean, UAE, Kuwait, Australia etc.

It is recalled here that Federal

Board of Revenue (FBR) had posted Gul Rehman as director at Karachi PCA in January, 2015 and the ofQicer broke all the records by detecting

tax evasion to the tune of Rs one billion in six months, despite the fact that the directorate is facing serious issues like shortage of staff etc.

Balanced tax system should be made instead of new taxes: Baloch ISLAMABAD

m FAiZAN

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nstead of laying more burden on the existing taxpayers, the government should develop a balanced tax-system in country after taking the stakeholders into confidence. This was suggested by All Pakistan Anjman-e-Tajiran Cen-

tral President Ajmal Baloch in an interview with Customs Today, adding that the tax system was not improved during reigns of the past governments.

Offering his and traders assistance, Baloch said that the business community was ready to extend helping hand to make an effective mechanism for broadening tax net and increasing tax collection.

He said that strength of taxpayers was standing at 1,400,000 almost 2-3 years ago and now total

taxpayers were 900,000 with the decrease of 500,000, which is a great number and also a matter of concern. He also urged the FBR chairman to investigate the issue against those have national tax number (NTN) but tax returns were not being Qiled by them.

Baloch said that about six million traders paid income tax, which is charged through electricity bills, whether they have taxable income or not. He added that traders those earned up to Rs 500,000 were be-

low the threshold for paying tax.

He said FBR should take measures to facilitate the small traders who have to pay taxes even on minor incomes.

Despite having good intention, FBR could not achieve desired results, he said, highlighting that department need to bring changes at lower-level as few ‘black sheep’ were damaging the reputation of the departments, besides causing loss to national exchequer.

He emphasized that FBR should

introduce tax form in Urdu language to make it easy for less educated traders, as literacy rate in Pakistan was also satisfactory.

FBR earned almost Rs 20 million from excise in a day, but measures have not been taken to make it better.

Developed nations improved their systems at first, instead of launching mega projects; he said, adding that “We should learn from such nations in the larger interest of Pakistan.”

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Army Welfare Trust seeks 100pc tax credit ISLAMABAD: The Army Welfare Trust has demanded the Federal Board of Revenue (FBR) give 100 percent tax credit to it, sources said. According to the sources, the trust has sent a letter to FBR. In the letter, Managing Director Lt General (r) Khalid Rabbani has given reference of meeting with Finance Minister Ishaq Dar and said that according to Section 100 (c) of Income Tax Ordinance 2001, welfare organizations can have the facility of 100 percent tax credit. Army welfare Trust is a welfare organization under Society Registration Act, 1860, which come directly under the command of Pakistan Army Welfare Rehabilitation Department, he added.

FBr to promote miS officers to BS-17 through FpSC exams

Saturday December 5, 2015

National

peshawar Customs collects rs 8,667 million in November

KARACHI

muHAmmAD YouSAF www.customsbulletin.com

he Federal Board of Revenue (FBR) has decided to promote MIS officers BS-16 to the IT Cadre post BS-17 through the Federal Public Service Commission (FPSC) examinations.

In this regard, Riaz Muhammad, Secretary Mgt IR-III, has forwarded a letter No 11(5)S.L/BS-16/2014MIR-III to all the Chief Commissioners of RTOs/LTUs, all Director General (Inland Revenue), Directorate General I & I-IR, Islamabad, asking them to circulate the FPSC forms to the MIS officers so that the process could be initiated at the earliest.

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FBr to conduct special audit of regular tax evaders ISLAMABAD

SHAHiD miNHAS

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ederal Board of Revenue (FBR) has decided to conduct special audit of regular tax evaders.

According to details the special audit will be conducted of those people, firms and companies which expenses exceeded than the income and who have properties abroad.

Sources added that FBR has proposed amendments in the income tax ordinance and with the proposed amendments every commissioner Inland Revenue (IR) will get the power to conduct audit and form a special audit panel for this purpose in this regard. Sources said that FBR has proposed the amendments and has aksed suggestions and objections from the stockholders within 7 days.

Sources added that under the proposed amendments the special audit panel will comprise of IR officer.

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PESHAWAR

NADir kHAN

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odal Customs Collectorate Peshawar has collected Rs 8667 million under the head of various duty collections while in November 2014 the gross collection figures were Rs 8108 million with total difference of Rs 559.38 million.

Sources at the Peshawar Customs House told Customs Today that the collectorate collected Rs 3291 million under the head of customs duty against the previous year’s collections which were Rs 2651.04 million with difference of Rs 640.34 million.

In term of sale tax on import, the Custom House collected Rs 2095.77 million against Rs 2271.72 million last year with difference of Rs -177.42 million.

Similarly, under the head of sales tax levied as federal excise duty on palm oil the collectorate collected Rs 1024.24 million in gross while in previous year this collection was Rs 1390 million which was high with Rs 365 million differences.

The difference in percentage was -26.32%.

Likewise in the term of sales tax value addition on commercial importers was Rs 324.08 million against the previous year of Rs 299.41 million with total differences Rs 24.67 million while the

difference with in percentage was 8.24%. The collectorate also slightly missed its target in head of federal excise duty and collected Rs 105.05 million instead of Rs 108.74 million of previous year collection.

The difference was -3.66 million rupees while difference in percentage was 3.37%.

In head of withholding tax the Custom House collected Rs 1827.13 million against the previous year

Collections which were rs 2651.04m with difference of rs 640.34m. in term of sale tax on import, the Custom House collected rs 2095.77m against rs 2271.72m last year with difference of rs -177.42m

govt to include gST under value added tax ISLAMABAD

SHAHiD miNHAS

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he federal government would include general sales tax (GST) in the value added tax, it is learnt here. Sources said that International Monetary Fund (IMF) and the World Bank have emphasized Pakistan to impose GST to

bring all supply-chain networks into the tax net. It may be mentioned here that the government has already tried to introduce value added tax in the past but had to face resistance. The sources added that a team of Federal Board of Revenue (FBR), under the supervision of Special Assistant to Prime Minister on Revenue Haroon Akhtar, will meet the IMF and World Bank representatives in Dubai on December 6.

In the meeting, the FBR’s team will give presentation regarding the im-

position of single digit GST in the value added tax. While the IMF and WB member will also provide technical support to the Pakistan in this regard. The sources further revealed that FBR would set the tax rate between six to nine percent. Meanwhile, The issue of withholding tax between government and traders will soon be resolved, it is learnt here. According to sources, the FBR has made it clear to the non-Qiler traders that withholding tax will not be withdrawn as parliament has also approved it.

Rs 1385.78 million collection with differences of Rs 441.35 million while the difference in percentage was 31.85 percent. It is merit to mention here that the Modal Customs Collectorate Peshawar (MCCP) has surpassed the previous target by collecting Rs 8667 million in head of various duty collections while in November 2014 the gross collection figures were Rs 8108 million with total differences Rs 559.38 million.

prA Judicial member Azhar retires on 31st ember Judicial of the Punjab Revenue Authority (PRA), Malik Azhar Ul Haq, will retire from the service on December 31, 2015. The member judicial performed his duties as sessions judge in different districts of Punjab.

A decision to appoint a new member judicial of the PRA tribunal will be taken after December 31.

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National Savings collected Rs 111 billion Saturday, December 5, 2015

Business

ISLAMABAD: The Central Directorate of National Savings (CDNS) generated Rs111 billion as against the proportionate target of Rs125 billion till November 28, during the current fiscal year (2015-16). An official of the CDNS informed APP, the estimated target of the national savings for the year 2015-16 has been set for Rs. 302 billion. Likewise, he said during the first quarter of current fiscal year, the CDNC collected Rs. 82 billion as against the proportionate target of Rs. 66 billion. The official said the federal government has also started making adjustments in the profit rates on new saving schemes from December 01, 2015.

kSe keeps upward momentum, gains 143pts to reach 32708 at closing KARACHI

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he Karachi Stock Exchange Friday maintained the bullish note on the last trading day as KSE-100 index gained 142.77 points to reach 32707.91 level at closing. The market recorded the highest trading level of 32771.86 points and lowest level of 32565.14 points, with the volume of 70,295,620 shares, having

used cars continue to enjoy favours LAHORE

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Rs5,159,955,539 value. As many as 333 companies were active; of which 207 advanced, 110 declined and 16 remained unchanged.

Technology & communication remained the highest traded sector with total volume of 14,979,500 shares, while the cement remained second traded sector with a total volume of 12,422,600 shares.

The three top traded companies were TRG Pak Ltd with a volume of 12,116,000 and price per share of 37.20 (0.86), Pak Elektron with a volume 9,642,000 of price per share of 64.35 (0.83), Sui North Gas with a volume 5,705,500 of price per share

nstead of getting caught by promoting illegal channels of money transfer and using forged documents to import used cars, the importers of used cars continue to enjoy favor from Govt even with a mini budget announcing duty enhancement on imports. In the recent government initiative to collect duties and taxes, the lobby of used cars has managed to keep import of upto 1000cc used cars away from more taxes cars.

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ISLAMABAD

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inance Minister Ishaq Dar chaired a meeting here on Thursday to Qinalise the modalities for launching the EXIM Bank of Pakistan.

Senior ofQicials concerned of the Ministry of Finance, Governor State Bank of Pakistan and other SBP ofQicials were present in the meeting.

ISLAMABAD

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he Anti-Narcotics Force (ANF) has recovered 321kg drugs, including 2.5kg heroin, 318kg hashish and 500 grams opium and arrested eight accused drug traffickers in eight operations.

As per details here issued on Thursday, the ANF Rawalpindi Road Check Team arrested two drug carriers including a lady named Fouzia Bibi, resident of Haripur along with her male accomplice named Abdul Haq resident of Peshawar. The operation resulted in recovery of 7kg hashish, which was found in their personal possession.

After initial investigation, another accused named Zeeshan Iqbal, resident of Rawalpindi, reportedly, a source of supply was also taken into custody from Taxila bus stop, Taxila along with recovery of 500 grams opium. An ANF team during routine profiling at Allama Iqbal International Airport, Lahore, detained a suspected lady named Shabana Bibi who intended to board for Colombo

by Flight No MJ 186. During interrogation, the accused confessed of carrying heroin filled capsules.

Later, 500 grams heroin was recovered from the said capsules.

T of 29.60 (0.69). The top three gainers were RaQhan Maize with price per share 9250 (178.70), Bata (Pak)

XD with price per share of 3050 (54.17) and Ferozsons (Lab) with price per share of 955 (39.84).

Dar holds meeting to finalise modalities for exim bank launching

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ANF seizes 321kg drugs in eight operations

The meeting was informed that the Bank having a paid up capital of Rs. 10 billion will give a boost to export focused SME’s in the country by offering them access to export credit and providing insurance of export receivables. The Finance Minister appreciated the support of the State bank of Pakistan in setting up the EXIM Bank and gave guidance to the effect that the bank should begin operations at the earliest. Various steps necessary for early operationalisation of the Bank were also discussed in detail. Meanwhile, Finance Minister also chaired a meeting with the

representatives of Exchange Companies in Lahore. Governor State Bank of Pakistan, Ashraf Mahmood Wathra, and other SBP ofQicials also attended the meeting. The representatives of exchange companies briefed the Finance Minister about the issues faced by them and also discussed in detail the trends and developments in foreign exchange market. The meeting noted that the external account of Pakistan is stable on the back of lower commodity prices, healthy workers’ remittances, and continued support from the international Qinancial institutions.

Japan to grant $0.25m for social development projects ISLAMABAD

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he Japanese government has decided to grant Qinancial support of $254,889 to three Pakistani NGOs, Sangtani Women Rural Development Organisation, Saint Raphael’s Hospital and Learning Awareness and Motivation Programme (LAMP) for the implementation of social development proj-

ects for disadvantaged communities of the country.

The agreements for the three projects were signed on Thursday, at the Japanese Ambassador’s residence in Islamabad, between Ambassador of Japan to Pakistan Hiroshi Inomata and the heads of the three organisations. NGO Sangtani Women Rural Development Organisation will utilise its grant of $80,217 for the installation of nine water Qiltration plants in rural areas

of UC Fatehpur (Tehsil & District Rajanpur) which are suffering from high prevalence water borne diseases due to the non-availability of safe drinking water.

The NGO has been actively working for the promotion of human rights, quality education, WASH, health services and rehabilitation of marginalised and poor families in the rural areas of Punjab and Sindh since 1997. Aligning with its goals this project will help the NGO in im-

proving access of the 3,360 community members of the UC to safe and clean drinking water, and will contribute in prevention of water borne diseases in the target area.

The grant of $83,960 awarded to St. Raphael’s Hospital in Faisalabad (Punjab), which is primarily a maternity hospital and a Midwifery Training School, will help improve medical services of the hospital.

Previously, in 2012 the government of Japan extended financial support

worth $123,000 to the Hospital for construction of a two floor Outdoor Patient’s Department (OPD) which now benefits many underprivileged families. The current grant will further enable improvement of medical facilities of the hospital.

The installation of equipment, including x-ray and ultrasound machines, is expected to not only improve the quality of services but also promote natural child delivery in the target area.

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KARACHI AFTAB CHANNA www.customsbulletin.com

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he Model Customs Collectorate Appraisement-East collected Rs 26.019 billion as duty/taxes under various heads during November, 2015.

According to the statistics available with the Customs Today, the Appraisement-East collected Rs 7,646 million under the head of customs duty, while Rs 13,762 million under the head of sales tax, Rs 4,513 million as income tax and Rs 98 million under the head of federal excise duty.

Significantly, it collected Rs 2,060 million on the last working day of November 2015 i.e. November 30 that included Rs 530 million customs duty, Rs 1,145 million under the head of sales tax; Rs 379 million as income tax and Rs 5 million as federal excise duty.

At all, the Appraisement-East has so far collected Rs 102,114 million taxes since July 1 to November 30, 2015 that included Rs 38,052 million under head of customs duty; Rs 68,086 million as sales tax; Rs

21,339 million as income tax and Rs 656 million under head of federal excise duty.

Meanwhile, Model Customs Collectorate Appraisement East under the supervision of Collector Majid Yousfani has collected at least Rs 27.083 billion taxes/duties under various heads in October 2015.

According to statistics available with Customs Today, the MCC Appraisement East collected Rs 8,419 million under the head of customs duty, Rs 13,875 million under the head of sales tax, Rs 4,604 million as income tax and Rs 185 million under head of federal excise duty during October 2015.

Significantly, the MCC Appraisement East collected Rs 2,376 million on the last working day of October 2015 i.e. October 31 that included Rs 592 million under the head of customs duty; Rs 1,332 million under head of sales tax; Rs 441 million as income tax and Rs 10 million as federal excise duty.

At all, the MCC Appraisement East has so far collected Rs 102,114 million taxes and duties since July 1 to October 31, 2015 that included Rs 30,407 million under head of customs duty; Rs 54,324 million as sales tax; Rs 16,826 million as income tax and Rs 558 million under head of federal excise duty.

ics e statist h t o t g Accordin ith the Customs st ew availabl ppraisement-ea the he A Today, t s 7,646m under s le r dr collecte toms duty, whi les cus f sa head of der the head o nd un ax a 13,762m 3m as income t ,51 d of tax, rs 4 under the hea rs 98m excise duty. federal

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Saturday, December 5, 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.

pak, China economic ties S

LAHORE

Dr AFTAB AFZAL

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ome top economists and social scientists have projected fasts economic growth in China, predicting that China will overtake the United States as the world’s leading economy by 2025. The United States has been reigning as undisputed economic power for the last over a century but its dominance is drawing to a close keeping in view the pace of development in China. Noted economists have also predicted that China is shaping as the new world economic leader due to its increasing economic growth, ever-expanding cultural influ-

ence, and its quest to involve regional economies in trade, business and investment.

China has been slowly heading toward road of development for the last half a century and has acquired a dramatic rise both in its gross domestic products and stock exchange, definitely showing that the Asian nation is outperforming various global economies in business and trade. Though many economists doubt the myth of the fastest Chinese growth, yuan continues to gaining stronger against the US dollar and more and more people worldwide will be looking to China, not America in coming years. Many prominent scholars look the answer of the China’s economic

dominance in the history, claiming that the United States’ gradual fall from the upper echelon of economic superpower is part of an inevitable pattern seen time and again throughout the history of mankind.

All the great nations eventually watch a day that comes when their dominance slips away from their hands. Earlier, the Great Britain was the world’s dominant power for three centuries and now it has been cut short to an island.

Pakistan and China are close friends and a close cooperation between the two countries will definitely shed positive impact on the economy of the country but also in the region. Pakistan is a nuclear power with ad-

vanced defense technology and its economy is also growing at a fast rate. A great responsibility lies on the shoulders of the leadership in Islamabad is that it will have to keep a balance between its political relations with the United States and economic relations with China.

A point to ponder for world leaders: The fast industrialization has raised pollution at an alarming level in China and has a slightest lead on the United States in least giving importance to the climate change. Industrial development should not take away life and health of the people around the world.

This is a serious issue and coordination among the countries on the subject is indispensable.

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Oil trades below $42 in Asia SINGAPORE: Oil prices traded below $42 in Asia Monday ahead of an OPEC meeting and the release of data on China´s important manufacturing sector later in the week.

The market will be watching whether members of the Organization of the Petroleum Exporting Countries, which meets on December 4, slash currently high output levels and ease a crude supply glut that has depressed prices for more than a year.

Analysts said traders will also tune in to two key speeches by US Federal Reserve chair Janet Yellen this week for signs on the timing of a hike in US interest rates.

November data on China´s industrial sector is released on Tuesday, with traders looking for clues on the health of the world´s top energy consumer.

'FBr’s decision to impose rD will promote smuggling, trigger inflation’ resident of the Karachi Chamber of Commerce and Industry (KCCI) Younus Muhammad Bashir has expressed deep concern over Federal Board of Revenue (FBR)’s decision to impose Regulatory Duty (RD) on 61 more items and raising the RD on more than 300 items, which would not only result in triggering the inflation in local markets but would also promote smuggling

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of many of these items.

According to a statement, Younus Bashir said, “Majority of these items like tea, coffee, diapers for infants and babies, cashew nuts, almonds, cocoa powder, pineapples, various garments, footwear, rubber or plastics etc. were already prone to smuggling and the imposition of RD will obviously discourage the legal importers and encourage smugglers to benefit from the situation.” It seems that FBR’s decision to raise RD on 61 more imported items was unlikely to earn the anticipated revenue but it would surely result in enhancing the smuggling, he opined, adding that the negative consequences of such an unwise move would ultimately be borne by the common man who will have to pay more for many essential commodities being used frequently in every household. President KCCI further argued that FBR claims of imposing taxes and RDs on luxurious items only but it seems that the list of newly added items contains products like tea, coffee, diapers for infants and babies, garments, footwear, rubber or plastics etc. which simply cannot be treated as luxury items.—CB Report

Saturday December 5, 2015

Chambers

gCCi shows reservations over imposition of sales tax by punjab govt G

SIALKOT

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ujranwala Chamber of Commerce and Industry (GCCI) has shown serious reservations on the imposition of sales tax under Services Act by the Punjab government. Addressing an important meeting of the local traders, industrialists and exporters , the GCCI president Sami Ullah Naeem expressed grave concern over the levy of this sale tax by the Punjab government, saying the business community was much perturbed due to the mounting burden of the already imposed much taxes.

He said that the business community has become much tensed after the levy of sales tax on the services, saying that the national economy was getting weaker day by day as the volume of business is also reducing in the factories due to the imposition of the unjustiQied taxes as the volume of the taxes is increasing day by day in the country, making it very hard for the businessmen to do business here.

GCCI President Sami Ullah Naeem said that the government should had

to take the business community into conQidence Qirst before levying this additional sales taxes on services sector, saying that the Punjab government has made all the businessmen and traders as agent after the imposition of Sales Tax on Services Act 2012 and now the imposition of Withholding Rules 2015. He said due to this critical situation, the businessmen

have become much perturbed. He demanded immediate withdrawal of this recently imposed sales tax on services sector in the large interest of the business community, in this regard. Meanwhile, The exports of surgical instruments from Sialkot increased by $2 million, as these exports jumped to $339 million from $337 million during the Qiscal year

kCCi appreciates campaign by karachi Dig

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KARACHI

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x-president of the Karachi Chamber of Commerce & Industry (KCCI) Siraj Kassam Teli and president KCCI, Younus Muhammad Bashir, highly appreciated the campaign announced by Karachi city’s TrafQic Police (CTP) Chief, DIG Amir Ahmed Shaikh against all drivers violating trafQic laws specially those driving without a license.

They said that Sindh government immediately announced to postpone this campaign after witnessing the crowds at driving license branches but it was not a wise move as this campaign has to be undertaken in the city at the earliest in order to effectively deal with the messy trafQic Qlow situation.

Siraj Teli noted that massive number of people poured into the

driving license branches on Monday which clearly indicates that majority of the commuters have been fearlessly driving on the streets of Karachi without licenses. “TrafQic Police authorities, bureaucracy, administration and our politicians can surely blamed for the situation as all of them have never bothered to look into this serious issue which poses grave threat to everyone driving or walking on the streets of Karachi”, he added.

He further pointed out that currently only three driving license branches were operating in the city which was insufficient to deal with wide number of people. Thus, the authorities should consider raising the number of driving license branches or keep the existing branches operational for extended time period. Siraj Teli was of the opinion that the campaign against traffic rules violators kicks

off at the earliest and it must continue aggressively until every single commuter of Karachi city holds a valid driving license. He also underscored the need to take strict and indiscriminate action against all violators while any official caught seeking bribe should also be strictly dealt and put behind the bars. “No leniency should be granted at any cost and action must be taken without considering commuter’s influence while the relevant law must be equivalent for everyone regardless of bearing in mind whether the violator is driving a rickshaw, a Mercedes Benz, a Bus, a Truck, a Motorbike, a Taxi or any other vehicle”, he added. Commenting on the situation, President KCCI Younus Muhammad Bashir advised the authorities to streamline the operations of Driving License Branches in Karach.

2014-15. Chairman Surgical Instruments Manufacturers Association of Pakistan (SIMAP) Muhammad Ashraf Raza while talking to the newsmen at his ofQice here today. He said that main reason behind this increase in surgical exports from Sialkot-Pakistan was the easy access of Sialkot based surgical instruments’ exporters to the new international markets.

Cambodia Chamber elects meng as president hairman of the Royal Group, was reelected president of the Cambodia Chamber of Commerce yesterday in a landslide vote at its Phnom Penh office. The tycoon, whose interests span television, banking, telecoms and property, was also reelected president of the Phnom Penh Chamber of Commerce. During the one-day election, Mr. Meng received 33 of 34 votes, and another 14 votes from presidents of 14 provincial chambers of commerce.

Phnom Penh governor Pa Socheatevong said the chamber has for years been the government’s top development partner.

The government prioritizes the private sector because of its ability to work with the government.—CB Report

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Afghan visitor arrested for smuggling 90 hashish pills Saturday December 5, 2015

World

KABUL: A visitor who claimed he was forced to smuggle hashish capsules in his stomach under death threats has been jailed for 10 years. The 50-year-old Afghan visitor, M.Z., was caught in possession of 90 capsules hidden in his intestines at the arrivals terminal of Dubai International Airport in July. The Dubai Court of First Instance convicted M.Z. of smuggling and possessing hashish for promotional purposes.

According to the primary ruling, the accused was also fined Dh50,000.

He will be deported following the completion of his punishment. Records said law enforcement officers foiled the defendant’s bid to smuggle the hashish capsules after the special detecting device revealed strange objects in his stomach.

uk authorities seize 30,000 illegal cigarettes, alcohol

NEWCASTLE

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niffer dogs Yo Yo and Scamp helped ofQicers from Newcastle’s trading standards team search Qive properties across the city – uncovering 30,000 illegal

uk police confiscate 26kg marijuana, 2kg cocaine aterloo Regional Police say they seized 26 kg of marijuana, 2 kg of cocaine, and various other drugs and items from two properties in Cambridge. The seizure came following the arrest of a Cambridge man earlier in the week, in a Mississauga parking lot.

According to police, the man faces eight counts of possessing drugs for the purpose of trafficking, and one separate count of drug possession. A second man allegedly escaped police in a rental vehicle, colliding with a police cruiser as he did so. Police have not yet been able to identify that man. About a kilogram of marijuana was found at the scene of the arrest, along with more than 200 grams of cocaine and three Percocet pills, with a combined value estimated at $14,000.—CB Report

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cigarettes, illegal tobacco, and more than 400 bottles of whisky and vodka. The bounty with a street value of £15,000 were uncovered by the specially trained sniffer dogs.

The alcohol is being tested to see if there is any substance unQit for human consumption after previous seizures were found to contain ethanol which can cause blindness.

Councillor Nick Kemp, Newcas-

tle’s cabinet member for regulation, said: “I would like to congratulate the team of ofQicers, and our canine friends Scamp and Yo Yo who uncovered this huge quantity of illegal goods. BWY Canine LtdScamp, left, and Yo Yo, specially trained dogs which help to track down illegal tobaccoScamp, left, and Yo Yo, specially trained dogs which help to track down illegal tobacco “There’s no doubt in my mind that the whisky would have been bought as gifts in the run up to Christmas. “Not only is there no duty paid on it but we really don’t know what’s in it so it could be harmful for human consumption which is worrying.

“All tobacco – illegal or legal is harmful – so we are delighted that we have seized such a large quantity in one operation. It is testimony to the professionalism of our staff and our partners such as Northumbria Police and of course the public whose tip-offs are often the start of these raids.”

uS Customs nabs women for smuggling 137lb drugs ARIZONA

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wo women were arrested by U.S. Customs and Border Protection ofQicers on suspicion of trying to smuggle a combined 137 pounds of narcotics through the Port of Nogales in separate attempts.

OfQicers at the Mariposa crossing referred Darla Marlene Pimber, 20, for further inspection, when they found 25 pounds of meth, nearly six pounds of heroin and more than two pounds of cocaine inside her vehicle, according to a statement from Customs and Border Protection here the other day. The drugs are worth around $180,000, the statement said. Customs ofQicials said one of their canines alerted ofQicers to another vehicle at the DeConcini crossing later in the day. After inspection, ofQicers discovered almost 105

pounds of marijuana, worth more than $52,000, in the rear of 46-yearold Claudia Gomez-Martinez’s SUV, the agency said. Both Gomez-Martinez, of Nogales, Mexico; and Pimber, of Tucson, were tuned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The drugs and vehicles were seized by Customs and Border Protection ofQicers, according to the statement. Customs and Border Protections ofQicers screen all people, vehicles and goods entering the United States, the statement said.

They work under the Department of Homeland Security to facilitate legal trade and travel.

Meanwhile, Customs and Border Protection agents seize narcotics hidden in a unique way. The incident happened over the holiday weekend at World Trade Bridge.

Agents referred a tractor trailer into a secondary inspection. During the examination of a shipment of charcoal, they found more than 2,800 pounds of marijuana inside.

Sri Lanka Customs seized rs 300b Hong kong Customs seizes 4kg meth worth of foreign currency in 2015 ri Lanka Customs states that assumed duties as the new Direcworth HkD1.32m it had seized an amount of tor General of Sri Lanka Customs.

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28-year-old model was arrested at Lo Wu Control Point yesterday after customs ofQicers found drugs hidden in cookie boxes during a search on account of her suspicious behaviour.

The ofQicers proceeded to open the woman’s plastic bags, which contained several boxes of what appeared to be traditional Chinese almond biscuits. After opening the boxes, authorities found a combined four kilograms of white powdered

substances. Oriental Daily reports that the substance is suspected to be methamphetamine (also known as ice), with a street value of about HKD1.32 mil.

The 28-year-old, who is unemployed except for occasionally acting as a “private model”, has been arrested for suspected trafQicking of dangerous drugs. The case is currently being investigated by a team at the Customs Drug Investigation Bureau.—CB Report

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over Rs.300 000 million of foreign currency that was to be illegally exported, so far this year.

Customs Spokesperson Leslie Gamini stated that there were 39 such attempts to move foreign currency abroad illegally thus far this year. He added that the a special investigation has been commenced into the racket surrounding black money and money laundering.

Meanwhile, Chulananda Perera

The event took place at the Customs Headquarters in Colombo.

Chulananda Perera assumed duties following religious observances. Family members, relatives and Customs Officers attended the event. Prior to his appointment at Sri Lanka Customs, Chulananda Perera served as the Controller General of the Department of Immigration and Emigration.—CB Report

Chinese police nail down human smuggling racket

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GUANGDONG

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uthorities have arrested 22 people and seized more than 35,000 forged visas in a crackdown of a human smuggling ring in southern China that had reportedly helped 3,200 Chinese enter North and South America ille-

gally, according to a report from the Guangzhou media. Police in Jiangmen City, Guangdong Province, confiscated 270 forged official seals and froze more than 11 million yuan ($1.7 million) linked to the gang, which have earned 220 million yuan through the scheme, the report said.

The ring, based in Guangdong and eastern China’s Fujian

Province, was caught as part of China’s largest anti-human smuggling campaign in the previous decade. “The crackdown comes at the right time to destroy the ring’s development, since the kingpin surnamed Li says he planned to monopolize the smuggling business in the Americas,” said a police officer using the alias Luo Wei. According to police, Li special-

ized in forging documents and ran a travel firm in southern China’s Shenzhen Province to cover his smuggling operations. Over 70 percent of the people smuggled into the Americas were young men in their 20s, who wanted to work and earn money there “just like their parents or grandparents going abroad in this way,” said an officer who refused to be named.

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Euronav sells suezmax tanker for $22.25m BRUSSELS: Belgium’s Euronav has confirmed the sale of its 17-year-old suezmax Cap Laurent for $22.25 million.

Brokers reported the sale in mid-November, citing the buyer as India’s Seven Islands Shipping. The tanker was delivered to its new owner on November 26.

Euronav says the sale generated a capital gain of around $11.1m, which will be recorded in the fourth quarter.

The $750m revolving credit facility Euronav announced in September has subsequently been reduced by $11.5m, the NYSE-listed company said.

Around 10,000 tonnes of fertiliser being unloaded at port of ogdensburg pproximately 10,000 tons of fertilizer is being unloaded at the Port of Ogdensburg for later distribution to farmers and agriculturebased businesses across the north country and other parts of the Northeast, according to officials with the Ogdensburg Bridge and Port Authority.The Cyprus-registered bulk carrier Cinnamon arrived at the Port of Ogdensburg to deliver the dry bulk fertilizer as part of a 10-year public-private marketing agreement signed last year with NASCO-NY, a wholly owned subsidiary of Quebec Stevedoring Ltd., to operate the marine terminal at Ogdensburg. The company operates and globally markets 29 marine terminals from Nova Scotia to Chicago along the St. Lawrence River and throughout the Great Lakes. The dry bulk fertilizer is a new commodity being handled at the Port of Ogdensburg and is earmarked for distribution to agribusinesses and farms in the both the U.S. and Canada, according to Wade A. Davis, executive director of the OBPA.—CB Report

Ports & Shipping

Lufthansa Cargo, ANA Cargo expand joint network in Japan

ne of Maersk Drilling’s latest drillships has won a $44m contract to drill an exploration well for Total in block 14, offshore Uruguay.

The contract value excludes mobilisation. The duration of the work is expected to be 120 days, commencing in March 2016, and will be Total’s first exploration well in the area.

“We have collaborated and partnered with Total many times over the years.

Total is a highly valued customer of Maersk Drilling, and we are very pleased with being selected by Total to drill their first exploration well offshore Uruguay,” Claus V Hemmingsen, CEO of Maersk Drilling and member of the Maersk Group’s executive board, said in a release.—CB Report

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New uS, mideast methanol projects to change chemical shipping patterns ew US and Middle East methanol production capacity being added over the next two years will have serious implications for chemical shipping trade flow patterns, according to the latest edition of the Chemical Forecaster, published by global shipping consultancy Drewry.

Methanol is one of the top 5 seaborne chemical commodities accounting for 35% of the world seaborne chemical and vegoil trade in 2014. Despite being the largest producer, by both capacity and output, China remains a net importer and will continue to drive demand for methanol exports out of North America and the Middle East.

The build-up of petrochemical capacity in the first wave of US projects, estimated at about 12 million tonnes per year, presents a long-term competitive challenge for Europe and the Middle East’s petrochemical industry. Prior to 2015, the US imported approximately 5 million tonnes of methanol per year, mainly from Trinidad and Tobago and Venezuela. Given these new capacity additions the US will become a net exporter of methanol in 2016. In the Middle East, Iran is the only country to have new projects and expansions in the pipeline. If sanctions are lifted in 2016, Iran will increase its methanol production by 20 million tonnes between 2020 and 2025.—CB Report

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maersk drillship wins contract with Total in uruguay

Saturday December 5, 2015

FRANKFURT

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ufthansa Cargo and All Nippon Airways (ANA) are kicking-off the expansion of their joint network between Europe and Japan by adding connected destinations in Japan: First Fukuoka on the main island Kyushu in south Japan, later to be followed by Sapporo on the north island.

Starting from December, ANA

Qlights from Tokyo Haneda to Fukuoka Airport (FUK) can be booked via both partners’ booking systems. “Thanks to the Joint Venture we can connect the wide European network of Lufthansa Cargo, with the direct connections of both partners to Japan and the continental de-feeder Qlights of ANA”, says Carsten Wirths, Area Manager Europe and Africa, Lufthansa Cargo.

“Customers of both partners in Germany, France, Belgium, Great Britain and Austria will beneQit,” he said. “Fukuoka and its region are important centres for the steel and au-

tomotive industries, as well as for semiconductor technology, electronics, environmental and biotechnology”, explains Yukata Terao, Project Manager Cooperations, ANA Cargo. “These are sectors which substantially proQit from air freight.”

In December 2014, Lufthansa Cargo und ANA Cargo started their close bilateral freight joint venture on Qlights from Japan to Europe. On 3 August 2015, they expanded it to routes from Germany, France, Great Britain and Austria to Japan. Other destinations in European and Japan follow step by step.

india to start work on Sagar port in Bengal

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KOLKATA

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he Centre will start work on the much talked about Sagar Port in Bengal soon. This is one of the three new major ports coming up in the country. It is also planning to take up a major dredging activity at Sagar next year to improve the draft of the proposed port.

This was disclosed in the city by Union minister for shipping and transport Nitin Gadkari at an inter-

active session with MCC Chamber of Commerce and Industry on Tuesday. Gadkari pointed out that the current draft of the proposed major port at Sagar is 9.5 metres which will be increased to 13.5 metres by dredging. This, according to him, will be good enough for big vessels.

According to him, the shipping ministry is working with IIT Chennai for a new dredging technology that will bring down the dredging cost by 50%. “We will apply the technology for Sagar port. This will reduce the dredging cost of Kolkata port from Rs

450 crore to Rs 200 crore,” he said. Incidentally, the Centre is ting up a special purpose setting up a special purpose vehicle with West Bengal government for the Sagar port. The state has already committed 26% stake in Sagar port. The total investment in Sagar is Rs 10,000 crore. Besides Sagar, Gadkari added that the work for the proposed inland waterways from Varanasi to Haldia would start in next few months. “The 1,620kilometre waterways will start from Varanasi and will go through Sahebganj in Jharkhand to Haldia,” he

added.Gadkari pointed out that this waterways can be used to transport coal. “This will help reduce power cost,” he added. “In order to compete in ternationally we have to strengthen waterways. In China, 47% of transport is through waterways while in India it is only 4%. This is the cheapest form of transport,” he added. The Centre is planning to develop waterways on 111riv ers. Commenting on the per formance of the major ports Gadkari said that all the 12 major ports and three corpo rations under the ministry are doing well.

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FIA arrests nine human traffickers during crackdowns SIALKOT: Jazzing up the pace of its ongoing vigorous crackdown against human traffickers, the Federal Investigation Agency (FIA) has further tightened its circle around them, as the eight different raiding teams of the agency have arrested as many as nine big human traffickers-turned-notorious proclaimed offenders (POs) from different places. According to the Deputy Director FIA Gujranwala Region Ch Khalid Anees, the arrested accused were already named in the Red Book of the FIA and were wanted by the FIA in the dozens of the cases of human trafficking for the last many years.

Saturday, December 5, 2015

CUSTOMS BULLETIN

Customs seizes 162 drums of HSD oil worth rs 12 million KARACHI CuSTomS BuLLeTiN reporT www.customsbulletin.com

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ustom Intelligence has seized a Mazda loaded with 162 drums carrying 6800 liters HSD oil. The value of recovered HSD oil worth is nearly 12 million, it has learnt here.

According to details, on the directions of Director Intelligence ASO Margoob Ahmed Siddiqui, Additional director Nadeem Ahsan and assistant director Kaleemullah assigned a team headed by Deputy Superintendent Hajji Aslam, Inspector Parwez Ahmed Zardari, Muhammad Aqmal Hashmi, Rana Ansram Rabbinic, Munwar Ali, and Khuram Saeed has conducted a raid on the area of Karachi MangoPier and intercepted a Mazda T3500 oil tanker bearing Registration No JY8331, loaded with 162 drums of HSD oil carrying 6800 litters. Customs has arrested the accused, registered a case against him and the FIR had been launched. The custom case number is M-2140/DCI/SEIZ/2015.

Later accused appeared before the customs court where customs judge award him punishment of one day in the custom jail and impose Qine of Rs 100,000.

FBr reinstates accused Customs preventive examiner KARACHI

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he Federal Board of Revenue (FBR) has reinstated an Examiner of the Model Customs Collectorate Preventive who was allegedly involved in ‘inefQiciency and misconduct’. A minor penalty was imposed on him.

According to ofQicial letter, whereas disciplinary proceedings under Government Servants (EfQi-

ciency & Discipline) Rules, 1973 were initiated against Syed Farasat Ali Jaffery, Examiner BS-16, MCC Preventive Karachi vide charge sheet dated 14.7.2015. Ms Nausheen Riaz Khan, Deputy Collector MCC Appraisement West Karachi, was appointed as the inquiry ofQicer to conduct inquiry on account of various acts of omission and commission committed by the accused ofQicer constituting “inefQiciency and misconduct”. The accused ofQicer was served a show-cause notice dated 13.10.2015. He submitted his reply to the show cause notice, however, he did not avail the opportunity of

personal hearing. After considering the inquiry report and reply of the accused to the show cause notice, the authorized ofQicer/chief MgtCust has found him guilty of inefQiciency and misconduct in terms of rule 3(a) and (b) of the Government Servants (EfQiciency & Discipline) Rules, 1973 and he submitted his defence reply dated 20.10.2015. He was also given personal hearing by the Authorized OfQicer/Chief MgtCust on 25.11.2015. The Authorized OfQicer/Chief (Management-Customs), FBR has therefore, imposed the minor penalty of “withholding of annual increments for three

years” (without cumulative effect) upon Syed Farasat Ali Jaffery, Examiner MCC Preventive Karachi under rule 4(1)(a)(ii) of the Government Servants (EfQiciency and Discipline) Rules, 1973. His performance allowance shall be stopped for 6 months from the date of award of penalty as provided in para 7(ii) of the Performance Allowance Guidelines 2015 and he will have to appear afresh for restoration of the same. On conclusion of the proceedings, he is deemed as re-instated and the period of his suspension from 19.6.2015 onwards is treated as leave of kind due and ad-

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

missible under the rules. Meanwhile,The Federal Board of Revenue (FBR) has decided to promote MIS ofQicers BS-16 to the IT Cadre post BS-17 through the Federal Public Service Commission (FPSC) examinations. In this regard, Riaz Muhammad, Secretary Mgt IR-III, has forwarded a letter No 11(5)S.L/BS-16/2014-MIR-III to all the Chief Commissioners of RTOs/LTUs, all Director General (Inland Revenue), Directorate General I & I-IR, Islamabad, asking them to circulate the FPSC forms to the MIS ofQicers so that the process could be initiated at the earliest.