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Karachi, Tue December 6, 2016

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rime Minister Nawaz Sharif has envisioned making Pakistan a trade and transit hub for South and Central Asia and the Pakistan Customs must be prepared for the challenge. These views were expressed by Member Customs Nasir Masroor Ahmad on the comple-

tion of 5-day professional capacity building on Customs Clearance procedures, WeBOC and trade facilitation the other day.

He added that in collaboration with China, Pakistan has embarked on the CPEC project which will not only bring economic prosperity to the region but also further strengthening friendship bonds with China.

He said that in today’s world, trade has been rationalized and our ability

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to import and export cargo quickly and efOiciently must constantly catch up to the volume.

The Member Customs said that the changing nature of global production , with growing trade in immediate goods and inputs, under core the importance of having efOicient customs clearance system besides a good understanding of the processes so as to become an effective and competitive partner in global supply chain.

FBR to resolve tax issues, streamline refunds process to facilitate traders

Faisalabad Customs taking appropriate steps to facilitate trade: Saeed Asad

Prime Minister green-lights Diamer Bhasha Dam financing plan

Customs ASO impounds non-customs paid mobile phones from Ravi Road

Hyderabad ASO seizes smuggled cigarettes, gutka

Chief Commissioner Sajjad Haider has said that all eligible citizens should pay tax | See pAge 02 |

The Faisalabad Customs is taking appropriate steps to facilitate importers | See pAge 03 |

PMNawaz onMondayapproved,inprinciple, the financing plan for Diamer Basha Dam | See pAge 04 |

TheCustomsASOrecoveredsmartphones ofassortedbrandsofNokiaandSamsung | See pAge 14 |

The Customs ASO has foiled a bid to smuggle cigarettes and seized 20 cartons | See pAge 16 |

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SHC seeks comments on plea by Mansoor Foods Karachi Tuesday, December 6, 2016

National

KARACHI: The Sindh High Court (SHC) has sought comments from the petitioner on a constitutional petition filed by M/s Mansoor Foods Karachi challenging the impugn categorization and valuation (8 to 20 mesh) at the rate of $2.74 and (21-40 mesh) at the rate of 4.24/kg.

A two-member bench, comprising Justice Irfan Sadat Khan and Justice Muhammad Humayun Khan, was hearing the petition. During the hearing, counsel for the petitioner sought time to submit comments, therefore, the court adjourned the hearing for the date which would be announced by the SHC office.

fBr to resolve tax issues, streamline refunds process to facilitate traders

SIALKOT

ISLAMABAD

SALeeM AwAn SHeikHu

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ollector of Model Customs Collectorate (MCC), Sialkot Ahmed Reza Khan has said that the importers and exporters should use Sialkot Dry Port Trust (SDPT) instead of routing their consignments through Karachi Port as this trend has decreased trade volume at the local port.

Sialkot Dry Port Trust Chairman Khawar Anwar Khawaja, representative of Sialkot Chamber Of Commerce and Industry (SCCI) and other stakeholders were also present on the occasion. Reza said that since the assumption of charge, he cleared 200 stuck-up containers out of which 21 containers were unsealed. Hence by taking special initiative, he resolved the issue up to the entire satisfaction of importers and exporters. He referred to the Punjab chief minister’s statement wherein he stated that 70 percent of the export was based from Punjab and Sialkot has a major share in it. He urged the exporters of Sialkot to export their consignments through Sialkot dry port Trust so the adequate revenue might be generated and the port may be upgraded. He appreciated the efforts of Chairman Khawar Anwar Khawja, founder Chairman and SCCI to revive the dry port activities.

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hief Commissioner Sajjad Haider Khan has said that all eligible citizens should pay tax honestly as it is a national obligation and the Federal Board of Revenues (FBR) would resolve genuine tax issues of business community to facilitate them in tax payment matters. During his visit to the Islamabad Chamber of Commerce and Industry (ICCI), the chief commissioner said that the FBR preferred to receive taxes with friendly approach instead of adopting coercive measures, said a press statement issued by the ICCI. Sajjad Haider said that the department is making efforts for broadening tax base instead of burdening existing taxpayers with additional taxes and business community should cooperate with it in such efforts. He said soon a Tax Advisory Committee would be formed to settle tax issues of taxpayers in amicable manner. He maintained that there are many wedding halls in Islamabad but only 15 are paying taxes. He urged the ICCI to cooperate with tax department in its efforts to curb tax evasion by genuine taxpayers. The chief commissioner said that the process of tax refunds is being streamlined, adding, the Islamabad RTO wants to address tax issues of business community with consultation which produced better

reza urges staff to boost trade at Sialkot Dry port

results. He said that he believes in open door policy and if any taxpayer has any genuine problem, one should visit his ofOice without any hesitation. Speaking at the occasion, ICCI President Khalid Iqbal Malik said that millions of rupees of taxpayers are stuck up in refunds due to which they are facing liquidity problems and urged the FBR to ensure timely tax refunds.

He said that the FBR had extended last date for filing of income tax returns up to November 30 which was encouraging. However, he stressed that last date should be

further extended up to December 31, 2016 to facilitate maximum taxpayers in discharging their tax obligations. He said that the Chief Commissioner should play role in reducing gap between taxpayers and tax department. He claimed that web portal of the FBR also complicated and very difficult to understand for a common taxpayer.

He emphasised that FBR should take measures to remove all problems and simplify it that would help improve tax revenue. He said putting more tax burden on existing taxpayers is not a wise ap-

proach and FBR should focus on broadening the tax base. He said if the Islamabad RTO has tax related complaint against any taxpayer in the region, the ICCI should be taken on board in such matters so that issues could be settled in an amicable manner. ICCI Senior Vice President Khalid Malik, Vice President Tahir Ayub, office-bearers Khalid Javed, Tariq Sadiq, Zafar Bakhtawari, Naeem Siddiqui, Khalid Chaudhry and others also highlighted various tax issues for the attention of Chief Commissioner RTO, Islamabad.

Dg Valuation issues reference values of welding machine D

KARACHI

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irectorate General of Customs Valuation has issued reference values for welding machine. According to details Directorate General has initiated an exercise to develop database values for different items wherein it has been observed that declarations are of wide range and do not correctly reOlect values of the items as traded

in the international market. During the scrutiny of previous clearance data, it has been observed that welding machines falling under PCT heading 8515.3900 are being assessed at different values and certain transactions are on very low side. This Directorate General, after carefully examining the clearance data, also conducted market inquiries to verify the authenticity of declarations. Online prices were also obtained to corroborate the Oindings of the market surveys this

ofOice, therefore, has found that the customs values of welding machines 100 ampere (single phase) China $42. Welding machine 200 ampere (single phase) China $58. Welding machine 250 ampere (Single phase) China $86. Welding machine 400 ampere (three phase) China $225 These values are, however, for reference/guidance only and Oinal assessment may please be made after considering other factors which have bearing on the customs value.

The clearance collectorates may

like to consider the values given above before Oinalizing the assessment of the subject items. If further Oine-tuning in speciOications and ensuing values are required, Collectorate may forward a reference along with detailed justiOications and worksheets so that requisite adjustments are accordingly issued.

Meanwhile, Directorate General of Customs Valuation has issued the reference values for “Red Herring” Garments. The directorate general has initiated an exercise to develop

database values for different items wherein it has been observed that declarations are of wide range and do not correctly reOlect values of the items as traded in the international market. During the scrutiny of previous clearance data, it has been observed that Red Herring Garments falling under PCT headings 6106.1000, 6106.9000, 6109.1000, 6109.9090, 6104.6200, 6104.6900 are being assessed at different values and certain transactions are on very low side.

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PCA detects tax evasion by Modern Corporation KARACHI: The Post Clearance Audit (PCA) has detected evasion of duty/taxes of Rs 71,502

by M/s Modern Corporation, it is learnt.

Sources said that M/s Modern Corporation imported a consignment of aerosol spray paints under PCT Heading 3208.9090 and cleared the same from Customs Appraisement-West after claiming benefit of SRO 659(I)/2007 dated June 03, 2007.

However, the subject goods are correctly classifiable under PCT 3208.2090 attracting customs duty at the rate of 20 percent, sales tax 17 percent, additional sales tax at 3 percent and income tax 6 percent, the sources added.

Tuesday December 6, 2016

National

Quetta ASo seizes smuggled, nonduty paid goods worth rs 150m

faisalabad customs taking steps to facilitate trade: Saeed Asad

KARACHI

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ustoms Quetta has tightened the noose around smugglers and almost eliminated movement of smuggled goods. Collector Quetta Saeed Jadoon has advised the AntiSmuggling Organization (ASO) Quetta to keep strict vigilance and make all out efforts to curb this menace. In just two days, ASO Quetta headed by Deputy Collector Obaidullah Khan has seized huge quantity of smuggled and non-duty paid goods worth Rs150 million and arrested 16 persons. In just two days, ASO Quetta seized four trucks loaded with smuggled tyres, three trucks loaded with non-duty paid auto parts and two truck loaded with foreign origin cloth.

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Dg Shaukat for impounding smuggled vehicles ISLAMABAD

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ustoms Intelligence and Investigation Director General Shaukat Ali has ordered officers of all directorates to expedite operation against non-duty paid vehicles in country. The DG has directed them to impound minimum a vehicle in a day and thirty vehicles in a month, adding that relaxation for 2-4 days could be given, but more relaxation will not be offered. Officials said that the purpose of this campaign is to establish writ of the Customs Intelligence, besides warning the vehicle smugglers. He made it clear in his orders that smuggled vehicles were increasing in country and it is necessary to launch campaign against vehicles along with curbing smuggling of other items.

The DG also issued directions to mobilise all field investigation units against the smuggled vehicles, besides improving the information-sharing system.

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he Faisalabad Customs is taking appropriate steps to facilitate importers and exporters of the region in order to generate much needed revenue for national kitty, besides tight hinging noose on smugglers.

This was stated by Additional Collector Saeed Asad during an interview with Customs Today, adding, “We (customs) are always available to settle the issues of traders, who play active role in national economy, and brief them on latest policies of customs department”. “I will try to collect maximum revenue to meet the targets of running Oiscal year, as achieving the target and curbing the smuggling are my top priorities,” he said, adding that he motivated the ofOicials of the department on a daily basis to show their maximum performance on the directions of Collector ZulOiqar Ali Chaudhary. He informed that the Faisalabad Customs Appraisement showed outstanding performance in revenue collection during October 2016 as compare to same corresponding period of last year, adding that the appraisement collected revenue under the heads of customs duty, sales tax, income tax and federal excise duty (FED).

The Federal Board of Revenue (FBR) had assigned Rs 630.83 million target to the Customs Ap-

praisement for October 2016, while the department collected Rs 761.4 million during the said period and surpassed the set target by 21 percent, he said. Saeed Asad further explained that appraisement branch collected Rs 138.681 million as customs duty against the set target of Rs 108 million and Rs 610.935 million as sales tax against the target of Rs 493 million. It also collected Rs 11.755 millions in the wake of income tax against the set

The federal Board of revenue (fBr) had assigned rs 630.83 million target to the customs Appraisement for october 2016, while the department collected rs 761.4 million during the said period and surpassed the set target by 21 percent, he said

court issues verdict on Smart Zone case

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ISLAMABAD

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www.customsbulletin.com pecial Customs Court Judge Shiraz Kiyani, invoking under section 265-k CrPc, has acquitted three ofOicials of M/s Smart Zone, CEO Shakir Ullah Jan and two directors Latif Hakeem and Asghar Khan, from all the charges leveled against them by Customs Intelligence and investigation Agency. In his order, the judge said that all the seized articles were not included in the

banned list of articles and it is very settled principle of law that the items and articles are freely importable and abundantly available in the open market, would be deemed to have been legally imported unless it proved otherwise.

Accused Shakir Ullah had produced the documents of lawful import and possession of goods while Oilling written reply to the even time barred show cause notice, the onus to prove the allegations are on the shoulders of the seizing agency in terms of sec-

tion, 187 of the Customs Act, 1969 and till to date the prosecution failed to revert the same. It is admitted position that M/s smart Zone private Ltd is a registered company and carrying out the business of import of house hold items, and is also sloe appointed distributors of the “Samsung Brand Products” for Punjab and KPK province. The record placed before the court as well as available with the customs authority clearly shows that M/s Smart Zone had imported goods worth of millions.

target of Rs 14 million and Rs 65,000 in the wake of federal excise duty (FED) against the target of Rs 15.830 million, he said.

He added, “No doubt we are working hard and successfully collecting the revenue more than the target set by the government”. He said that the trend of generating revenue against the set target was positive and it happened for Oirst time in the history of Faisalabad Customs Appraisement.

‘customs letter against pcA alerts irrelevant’ ost Clearance Audit (PCA) Headquarters Director Dr.Kamal Azhar Minhas, taking notice of a letter issued by Customs member against alerts regarding clearance of used construction machinery, has declared it irrelevant to the issue and might be exploited and flouted for ulterior motives. The director has stated this in a letter to Secretary (Tar-III) Nisar Ahmed, adding that the PCA.

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Over 9.7m cotton bales reach ginneries across Pakistan Tuesday December 6, 2016

Business

MULTAN: Seed cotton (Phutti) 9,778,451 bales have reached ginneries across Pakistan till Dec 1, 2016, registering increase of 13.28 per cent compared to corresponding period of the last year.

According to a fortnightly report of the Pakistan Cotton Ginners Association (PCGA) issued here, out of total arrivals, Phutti equivalent to 8,900,666 bales have undergone the ginning process till December 1. However, the process of ginning is in progress also. The Trading Corporation of Pakistan (TCP) has not started purchase of cotton so far. However, exporters purchased 184,944 cotton bales.

pM okays Diamer-Bhasha financing plan ISLAMABAD

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rime Minister Nawaz Sharif on Monday approved, in principle, the Oinancing plan for Diamer Basha Dam. The premier directed the water and power, planning and Oinance secretaries to expedite work on the Oinancial proposal and start related preparations to ensure physical work on the dam kicks off before the end of 2017.

The dam portion of the project will be constructed through Public Sector Development Programme (PSDP) allocations and Water and Power Development Authority

Mobiles’ imports decrease to $198m MULTAN

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he import of mobile phones into the country declined by 18 per cent to $198 million in July-October. Their imports clocked up at $753m in 2015-16 after increasing 4.15pc from a year ago, official figures show. The overall share of smartphones in total imports of mobile phones is around 40pc. The import of smartphones has not seen a significant increase since the introduction of 3G and 4G services. Out of 134m mobile phone subscribers, about 32m subscribe to 3G.

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(Wapda) generated resources.

The remaining Oinancing for the power-generation portion will be arranged on commercial basis by

the ministry either through Wapda or through leasing its existing projects. ‘ADB alone cannot fund Diamer-Bhasha dam’ The dam was ap-

proved for construction by Council of Common Interests (CCI) in 2009.

Efforts to Oinance it through multilateral donors had been prolonged.

Pakistan needs to urgently enhance its storage capacity to tackle water scarcity. Storage capacity across existing dams has been fast depleting due to silting with the country’s agricultural production declining due to routine dry spells.

These challenges need to be overcome by ensuring greater storage capacity. The Diamer Basha Dam will provide 8.1 million acre feet (MAF) of gross storage. Of this, 6.4 MAF will be live storage and a capacity to produce 4500 MWs of cheap and clean energy. The premier also appreciated the fact that the land acquisition for the dam has been completed.

kp cM vows to put agri tube-wells on solar-energy this year K

DERA ISMAIL KHAN

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hyber Pakhtunkhwa Chief Minister Pervez Khattak Saturday said the government is taking tangible measures to extend relief to growers, planning to put all existing all electricity-based tubewells of agriculture sector on solar energy in the province during the current year. Inaugurating Gomal Zam Command Area Project, the chief minister said the agriculture sector shared a good contribution

in economic development, so the government would provide solarpowered tube-wells to the growers of the province as part of efforts to give impetus to economic growth.

He said the provincial government would approach World Bank to lend Oinancial support to the plan and fully capitalize on agriculture development-oriented efforts. He said that mega project of the Gomal Zam Commad Area scheme would herald a green revolution to the land in area, which had been lying either barren or unproductive due to water scarcity, adding it would irrigate 87700

hectare of land in Kulachi, over 94000 hectare of Tank and about 8000 hectare of Dera Ismail Khan. He said said work on Chashma Lift Canal project would soon be kicked off, adding the province would bear cost of Rs 40 billion and federal government would share expenditure to the tune of Rs 70 billion to execute the project which would give boost to the agriculture Oiled of the district. He said that Dera Ismail Khan had been included in the China Pakistan Economic Corridor(CPEC) Project under which railway tracks and roads networks from Peshwar.

govt negotiating with cng sector to settle giDc dues ISLAMABAD

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ederal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has said that the government is negotiating with the CNG sector to settle the outstanding gas infrastructure development cess (GIDC) dues. “The government could not waive any tax on its own as any settlement regarding recovery of the outstanding GIDC could only be made through the parliament,” he apprised the Senate Special Committee Monitoring Implementation of the GIDC Bill-2015. He said that the CNG stations had collected the GIDC as per notified tariff of Oil and Gas Regulatory Authority (OGRA) – but have not paid the amount. All Pakistan CNG Association (APCNGA) representatives – led by Ghiyas Abdullah Paracha – apprised the Senate body that they held meetings with the officials of petroleum and financeministries and offered to pay Rs 10 billion against the total around Rs 32 billion outstanding amount to settle the GIDC payment issue. Committee Chairman Ilyas Ahmad Bilour was of the view that the GIDC was meant for the gas infrastructure development but it was not being utilised appropriately.

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e&p companies deposit $2.5m under social welfare fund ISLAMABAD

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il and Gas companies operating in different parts of the country have deposited around $2.544 million under the social welfare fund during the last three years. “Exploration and Production (E&P) companies are required to deposit social welfare fund in the joint account with Deputy

Commissioners, maintained in concerned districts,” ofOicial sources in the Ministry of Petroleum and Natural Resources told APP. They said around $ 2.544 million had been collected in last three years, which were judiciously utilized for well being of the local residing in oil and gas producing districts. Answering a question, the sources informed that currently the Ministry of Petroleum and Natural Resources was revising social welfare guidelines for

carrying out the development schemes in oil and gas producing Tehsils and Districts across the country. Under the new strategy parliamentarians were being given important role in identiOication and execution of social welfare schemes of oil and gas E&P companies operating in their respective constituencies.“Under the revised guidelines, social welfare schemes will be based on the requirement of areas and identiOied by concerned MNAs of dis-

tricts in consultation with representatives of local bodies or local administration,” they said. Facilities like health, education, water supply, improved drainage and sewerage system would be the key features of welfare projects, they said and added that practice of cash donations to patients would be discouraged to end reported complaints of malpractice.

They informed that E&P companies would open a joint bank account with District Coordination OfOicers

(DCOs) and Deputy Commissioners (DCs) concerned and deposit the social welfare contribution fund within one month of signing Petroleum Concession Agreement (PCA) and subsequently by January 31 every year.

“DCOs/DCs and E&P companies will sign cheques within a week after receiving complete requisition from the concerned agency,” they said adding that MNAs and other concerned would get input of locals in welfare schemes.

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ederal Finance Minister Ishaq Dar will preside over a special meeting on Saturday (today) in the Ministry of Finance to review revenue collection target of the current Oiscal year 2016-17.

Sources told Customs Today that the participants of the meeting also reviewed the overall performance of the Federal Board of Revenue (FBR) from (July to November 30) and will Oinalize their recommendations on a number of issues. Sources said that FBR Chairman Nisar Mohammad Khan and other high ofOicials will also attend the meting. Sources said that there are strong chances that government will decrease revenue collection target set for Fiscal Year 2016-17, while on the other hand FBR high ofOicials will apprise the participants about measures adopted by FBR to collect revenue during current Oiscal year.

Prominent among those who will attend the meeting includes Special Advisor to Prime Minister on Revenue Haroon Akhtar Khan Secretary Finance Waqar Masood, chairman FBR Nisar Mohammad Khan, Member Inland Revenue Dr. Mohammad Irshad, Member Customs Nasir Masroor Ahmed, Member Strategic Planning and Information Dr. Mohammad Iqbal and other high ofOicials. Sources said that FBR Member Inland because due to his Revenue Policy Rehmatullah Wazir will

not attend the m Revenue Opera will brief the p enue collection Meanwhile, Fed Dar held a mee the Forex Assoc chairman Shaik smuggling of f country. Talkin said alre ag

nent p ro m i eeti the m Min prime Se k han chairm

Memb irsh Ahm

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meeting and Member Inland ations Dr. Mohammad Irshad participants about the revn measures adopted by FBR. deral Finance Minister Ishaq eting with the delegation of ciation of Pakistan led by its kh Allauddin on the issue of foreign exchange from the ng with the delegation, Dar d that the government has eady launched crackdown gainst illegal money changers and at the airport.

He said that as a re-

sult of this crackdown against unscrupulous elements, the rupee dollar parity has improved by rupee one in the last 48 hours, he mentioned. He said that government would not allow any unscrupulous element to play with destiny of the country. He said the government did it in past as in1998 and 2013 and would correct this unnatural hike this time as well, he afOirmed.

He said that these unscrupulous elements should mind that one rupee devaluation cost 57 billion loss to the exchequers which is detrimental to the interest of Pakistan.

The federal minister mentioned during the meeting that some unpatriotic elements have been involved in forex and bullion smuggling. He reiterated in unequivocal terms that rupee dollar parity will not be allowed to be tampered through illegal and unnatural practices, and discipline will be enforced. The minister shared with the delegation that DG FIA, chairman Federal Board of Revenue, Joint d n atte l l Director Intelligence Bureau and i w o se wh to o other senior ofOicers concerned r h o t s i g v l Ad a amon i c will take strict measures e r p a S ht cludes on Ak against criminal elements ino r a H ing in nue d, e o v volved in the smuggling of o e s r a on aqar M gold and currency.He stated w nister e , c n n a kh fina d y a that FIA, IB, Custom Intellir m a t m ha e c re gence and State Bank of Pakar Mo mmad s i a h n o r B Dr. M istan have been tasked to e r u man f o n s ro ve keep strict vigilance in this n d re sir M a a a l n n i s r m be g and regard and all airports and custo lannin mber p e c i M g other entry points would be , e d d t n a a r ha t l S er kept under strict surveillance d iqba Memb amma h o med, to curb this menace of currency M . r D s n l cia atio and bullion smuggling. igh oďŹƒ nform

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

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Amended rules for real estate sector

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aws are frequently enacted and amended in Pakistan. No sooner the government makes a law than a needs arises to amend it. The laws are amended to the extent that they not only lose basic objectives but also add new complexities to them at implementation stages. The ultimate decision on a specific law is taken by the authorities on their will and vision and the people are the ultimate losers at the end. The government introduced new rules and regulations for the real estate developers to collect revenues, but the attempt not only backfired but also ruined the whole business. The real estate sector has lion share in the industrial development as it is very much attached to the construction industry. Hundreds of industrial units are associated with construction industry and slump in the real estate business means recession in the entire construction industry.

The real estate sector is also major attraction for investors. Once the laws are made to witch-hunt the investors, they will look towards foreign destinations to save their money. And this happened when the government introduced new rules of business in the federal budget for the current fiscal year. Out of thousands of real estate dealers and investors, a few are left in the field. The National Assembly has approved an amnesty scheme for the real estate sector by which the buyers will be allowed to clean up their huge undeclared transactions. Qaiser Ahmed Sheikh, chairman of the National Assembly’s Standing Committee on Finance, announced that the amendment to the income tax law will be acceptable to all stakeholders, including real estate agents, builders, developers and the tax collection authorities. The amendment will remove the gap between the basic rates at which most of the registries are signed at the deputy commissioner’s office and the valuation by the Federal Board of Revenue, determining the property prices. The amendment envisages a formula ‘A-B’ for computing the amount where ‘A’ is the value of the property determined by the FBR officials and ‘B’ is the value recorded by the authorities registering or attesting the transfer. The formula will be applicable only if the value A is higher than the deputy commissioners’ rates.The buyers will have to pay three percent of the difference between the A and B and the FBR will not ask about the source of their income.

praise for equity market A

LAHORE

Dr AfTAB AfZAL

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t a time the country’s economy is facing multiple challenges, an international magazine has declaredthe Pakistan’s equity market as the best in Asia as it has been showing better performance than China and India for the last one year. According to Forbes, the trade fund of the Pakistan’s Stock Exchange increased by 16 percent in one year whereas the fund remained in negatives in the two countries during the period in question.China and India are emerging economies whereas Pakistan is regarded as a frontier market, but the real growth of the

economy in this country has always been elusive. China’s growth is evident from its trade surplus and its dominance on consumer markets not only in the developing countries, but also in the United States and Europe. Indian claim of emerging market is a myth based on media hype. Indian economy is burdened with 466 million below the poverty line population. Pakistan is the real success story of private sector development in which the government has failed to play any positive role. In the wake of terrorist activities and imprudent business and trade policies, the economy of Pakistan is less exposed to the global shocks. In positive sense, the economy is resilient and less vulnerable to interest rate Oluctu-

ations in developed countries, including the United States.

Despitefear of Pakistan to become client state of China, an investment climate is picking up in the countrydue to China Pakistan Economic Corridor. The project not only gives the Chinese goods an access to Middle East, European and African countries but also paving the way for foreign investment in the country.According to the magazine, the endorsements for Pakistan’s market reforms from overseas institutions have increased investors’ expectations which resulted in $1 billion support from the World Bankand acquisition of K-electric

by Shanghai Electric Power Co.The magazine gives bleak picture of the Indian market due to demon-

etization of a part of currency and anti-investment policies launched by the Modi government. On another note, cumbersome policies of the Chinese government have blocked the Olow of foreign investment into that country. Pakistan is regarded as the frontier market, a grade below the emerging market, but documentation of the economy is the biggest problem facing the government. As a matter of fact, with little efforts, Pakistan can be turned into an attractive destination for business, industry and trade for the overseas investors. The government has to enforce writ of the government on administrative and Oinancial affairs and should not miss the opportunity of vast foreign investment in CPEC projects.

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Turkish exports increase by 5% in Nov ANKARA: Turkish exports increased by almost 5 percent as it stood at $11.95 billion in November compared to $11.38 billion in the same period last year, the country’s main exporters association said yesterday. A report released by the Turkish Exporters Assembly (TİM) revealed that exports in November rose by 4.6 percent. This figure had declined to $11.7 billion in October from last year’s $12.4 billion in the same month last year, slipping by 4.6 percent. The report, however, showed total exports in the first 11 months of the year went down by 2.4 percent compared to the same period last year, hitting $129 billion. “We will see our export growth, which turned positive in November, to keep surging as a decline in commodity and oil prices came to an end and exports to neighboring countries, especially Russia, start to recover,” head of the Turkish Exporters’ Assembly, Mehmet Büyükekşi said.

Belgian catalogue exhibition at Lcci ISLAMABAD

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mbassador of Belgium Frederic Verheyden has said that trade between Belgium and Pakistan needs special focus although the exports and imports figures are on the rise. He was talking to the Lahore Chamber of Commerce and Industry (LCCI) President Abdul Basit and Vice President Muhammad Nasir Hameed Khan on the occasion of Catalogues Exhibition of Belgian Companies here at the Lahore Chamber of Commerce & Industry. Trade Commissioner of Belgian Embassy Abid M. Hussain, the LCCI Executive Committee Members Khamis Saeed Butt, Mian Abdul Razzak Hassam Ali Asghar, Zeeshan Khali, Ch. Muhammad Arshad and Shahid Nazir Chaudhry were also present on the occasion. While underlining the importance of trade

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and economic ties between the two countries, the Ambassador said that both countries should identify more areas for cooperation and should also introduce more tradable items to enhance mutual trade volume. He said that visa policy for the businessmen of both countries should be liberalized so that they could make their business travels with quite ease. He said that Belgian companies have shown keen interest in Pakistani market. He urged the Pakistani businessmen to start joint ventures with their Belgian counterparts. They said that Pakistan should take full advantage of best geographical position of Belgium in European Union. Trade Commissioner of Belgian Embassy Abid M. Hussain said that Belgian productivity is amongst the highest in the world and it also accounts almost 4% of the world exports.

Tuesday December 6, 2016

Chambers

norway keen to expand trade: Ambassador Tore nedrebo H

ISLAMABAD

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E.Tore Nedrebo, Ambassador of Norway said that his country was more interested in investment than trade in Pakistan as it was an important market of South Asian region. He said Norway was the 2nd largest investor in telecommunication Oield in Pakistan after China and more Norwegian companies were taking interest in its market. However, current business climate and security situation in Pakistan were not encouraging for them. He said Pakistan will have to make itself a predictable, secure and proOitable destination to attract more Norwegian investment. He was addressing business community at Islamabad Chamber of Commerce and Industry. His spouse Madame Anne Dessingthon was also present at the occasion.

Norwegian Ambassador said that Telenor was the second largest cellular service provider in Pakistan with an investment of $3.5 billion and creation of 5000 direct jobs. He said Norway was cooperating with Pakistan in two LNG terminals at

Karachi and one Norwegian company was involved in a hydropower project in Swat, KP. He said balance of trade was in favor of Pakistan as during 2015, Pakistan’s exports to Norway were $78 million with imports from Norway $ 11 million. He said Pakistan Embassy in Norway has to play a proactive role for convincing Norwegian investors to explore Pakistan. However, he said if any Norwegian company showed interest in Pakistan, his Embassy would fully co-

operate. He said CPEC would be beneOicial for Pakistan and added that better growth of Pakistan’s economy would make it more interesting to Norwegian investors. In his welcome address, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that Pakistan and Norway have maintained good political relations since long that should be translated into growing trade and economic relations. He said the bilateral trade between both

neprA to promote competition-based electricity market in pakistan: imtiaz

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FAISALABAD

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ational Electric Power Regulatory Authority (NEPRA) is trying to promote a competition base electricity market in Pakistan enabling consumers to purchase electricity from the company of their own choice, said Director Consumer’s Affairs Engineer Imtiaz Hussain Baloch. He was addressing a meeting of local industrialists and businessmen in Faisalabad Chamber of Commerce and Industry (FCCI) here today. He said that the fundamental responsibilities of NEPRA is to issue license to power generating companies, Oix the electricity tariff and implement NEPRA laws as a regulatory in addition to

protecting the rights and interests of end consumers. He admitted that the price of electricity is high in Pakistan as compared to the other regional countries but its main cause is that we are producing maximum costly electricity in the basket of our energy mix. He said that after 1992 no major Hydel power plant was installed excluding an 84 mega watt Hydel unit which was established in private sector. He said that now efforts are being made to produce cheap electricity through coal Oired power plants. He hoped that its impacts are expected to be passed on to the consumers after 2018.

Engineer Imtiaz Hussain Baloch also endorsed a proposal of holding tariff determination meetings regarding FESCO in Faisalabad and assured that next meeting in this

respect will definitely be held in Faisalabad. He further told that a comprehensive procedure has been worked out to purchase surplus electricity from the private sector and under this arrangement any power producer could give surplus electricity at one point and receive it back from another point. Regarding net metering in Faisalabad, he said that the person being discouraged in this respect by FESCO could file their cases to NEPRA so that action could be taken against them accordingly. Responding to a question about recovery of different taxes in electricity bills, Director Consumers Affairs NEPRA said that their role is restricted to the tariff determination whereas the issue of taxation falls within the purview of government.

countries has not touched $100 million mark as yet despite the fact that both have good potential to enhance cooperation in many areas. He said Norway was endowed with rich natural resources including petroleum, hydropower, forests and minerals and it should cooperate with Pakistan in hydropower generation, exploration of oil and gas and minerals.

He said agriculture was another area where both countries could enhance cooperation.

Lcci strongly condemned indian aggression at Loc he Lahore Chamber of Commerce and Industry (LCCI) on Thursday strongly condemned Indian aggression at Line of Control (LoC) and urged the international community to restrain India from continuous violation of International laws. In a statement issued here, the LCCI President Abdul Basit, Senior Vice President Amjad Ali Jawa and Vice President Muhammad Nasir Hameed Khan said that violation at Line of Control by the unbridled Indian security forces in not tolerable and Indian government should well aware of the fact that Pakistan has abilities and all resources to give a strong reply. “India is intestinally targeting the residential areas of Pakistan.—CB Report

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PCA unearths Rs390m tax evasion on import of sunflower seeds Tuesday December 6, 2016

National LTu doubles ‘target’ of tax collection from cement sector KARACHI

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he Large Taxpayers Unit, (LTU) is expected to collect around Rs12 billion taxes from cement producers for 2016-17 against the last year’s tax collection of Rs 6 billion.

The Karachi LTU would collect the said amount under sales tax and federal excise duty from seven cement manufacturers, who account for 20 percent of total production in the country. Almost all the companies recorded sales improvement after the development projects being carried out by China.

Cement sales rose 8.3 percent yearon-year to 8.976 million tonnes in the first quarter of this fiscal year. The industry sold 33 million tonnes in the local market during the last fiscal year, up 17 percent over the preceding year. Tax officials said the FBR is eying more increase in collection on account of FED rather than sales tax.

They said the prime reasons are because of growing cement consumption and upward revision in FED rates through the Finance Act, 2016.

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ASo impounds Land cruiser V8 worth rs 4 million he Customs Anti-Smuggling Organisation (ASO) has impounded a nonduty paid vehicle, Toyota Land Cruiser-V8 white colour worth Rs 4 million involving millions of rupees duty and taxes during an action in Hyderabad. As per the details, Hyderabad Customs Collector Aghah Shahid Majeed received information that a non-duty paid vehicle is plying on the roads. After receiving information, he constituted a raiding team under the supervision of Additional Collector Omer Shasfique. The ASO team comprising Deputy Superintendent Sikandar Akbar Panhwar, Inspector Waqar Ahmed Baig, Inspector Shafi Muhammad Jamali, Inspector Mushtaq Ali Lakho, Sepoys Essa, Muhammad Shareef and others participated in the operation.—Aslam Qureshi

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KARACHI: The Post Clearance Audit (PCA) has unearthed a massive tax evasion of Rs389 million by 13 importers of sunflower seeds through mis-declaration.

PCA Deputy Directors Sajid Baloch and Iqbal Memon, during the audit of import data of sunflower seeds classifiable under PCT Heading 2306.3000, observed that certain importers are mis-declaring the classification of ‘sunflower seeds extraction’ by declaring it under PCT heading 2306.9000 in order to avail undue benefit of 8th Schedule of the sales tax. The sunflower seeds extraction is by description classifiable under PCT heading 2306.3000, where no benefit of sales tax is admissible.

ASo seizes goods, impounds vehicles worth rs.20.0233m A

ISLAMABAD

TAriQ DerYA

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nti Smuggling Organization and Car cell of Customs Collectorate Islamabad seized miscellaneous smuggled goods, non duty paid (NDP) and offending vehicles during third week of November 2016-17 amounting Rs.20.0233 million. Deputy Collector Customs Preventive Shahid Jan told Customs Today that during third week of November of Fiscal Year 2016-17 the overall performance of Customs preventive department was satisfactory, adding that during above said period car cell seized one non duty paid vehicle as and impounded eight offending vehicles.

He said that offending vehicles seized during above said period includes Suzuki pick up amounting

worth Rs.1.2 million, Hino truck worth Rs 1 million, 3 Hino passengers buses amounting Rs.6 million.

Shahid Jan said that car cell seized one non duty paid Mercedes Benz car bearing registration no.

BS-0695 amounting Rs.0.7103 million during said period, adding that during third week of November ASO aso seized velvet cloth 405 kilograms, ladies suiting polyester 1170 kilograms, LEDs 66 numbers,

hair oil 312 kilograms, iron pad lock 570 kilograms, bearing 60 kilograms, tyres 53 nos, gents suiting cloth 371 kilograms gents suiting polyester and many different types of smuggled goods including one non duty paid vehicle amounting to Rs.11.8233 million. Deputy Collector Shahid Jan said that due Anti Smuggling Organization is adopting zero tolerance policy towards smugglers. Meanwhile, The Customs Anti-Smuggling Organisation (ASO) has seized smuggled goods and a vehicle being used for smuggling worth Rs 3.73 million.

In pursuance of information that a Hino bus bearing Registration No LHC-5660 was coming from Peshawar carrying a huge quantity of foreign origin smuggled goods, the ASO team established a check post on GT Road near Burhan.

customs Appraisement collects rs 4,330.74m T

FAISALABAD

nAeeM SHeikH

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he Model Customs Collectorate Appraisement surpassed the revenue target for first five months (July-November), 2016 and collected Rs 4,330.74 million against the assigned revenue collection target of Rs 3,122.10 million.

According to details, the Customs Appraisement collected revenue under the heads of customs duty, sales tax, income tax and federal excise duty during the period.

The Custom Appraisement was assigned Rs 2465 million revenue collection target under the head of sales tax but it surpassed the target by 132 percent and collected Rs 3259.65 million during the said period. While under the head of customs duty, it collected Rs 1016.53 million against the assigned target of Rs 540 million.

Customs Appraisement Faisalabad also generated Rs 54.41 million as income tax against the as-

signed target of Rs 87 million that was achieved up to 63 percent,

while it collected Rs 0.15 million in wake of federal excise duty

(FED) against the assigned target of Rs 30.10 million.

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Quetta Customs impounds 36 vehicles in two months KARACHI: The Quetta Customs Collectorate claims to have impounded 36 non-duty paid vehicles during the anti-smuggling campaign, which was started two months ago.

Sources told Customs Today that Deputy Collector Amanullah Tareen received information that some non-duty paid vehicles were being used by different people. He constituted different raiding teams which established checking points on the main entry and exit points of the city.

The teams also raided various showrooms located in Jinnah Town, Shahbaz Town, areas around the airport and other localities of the city. Sources said that other Law Enforcement Agencies (LEAs) which includes Frontier Constabulary (FC) and police extended their full support to Customs Intelligence and Investigation department in anti smuggling campaign.

Hyderabad fiu seizes tyres worth rs 1.2m during road checking HYDERABAD

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ustoms Intelligence and Investigations, Field Information Unit (FIU) seized 30 pieces of foreign origin non-duty paid tyers Maxes brand. The market value of the impounded tyers is Rs 1,200,000 involving duty and taxes amounting to Rs 216,987/- during an action in Hyderabad city. Sources told Customs Today that Collector Hyderabad Agha Shahid Majeed received information about some smuggling attempts. Soon after receiving the tip of he constituted a team comprising

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Deputy Superintendent Sikander Hayat Khanzada, Inspector Ahmed Hussain Junejo, Inspector Irfan Ghani, sepoys Aslam Chohan, Musrat Shah Imran Alimuddin, Noshad, Azam Ali Chandio , driver Janib Kurb and others participated in the operation. The Field Information Unit team established different check points at entry and exit points of the city and started checking of vehicles. The FIU team intercepted a vehicle near Hyderabad bypass and recovered 30 pieces of Maxes brand foreign origin tyers. The team asked the driver to produce any legal documents regarding the legal possession and transportation of the imported tyers but the driver of the vehicle failed to show any documents on which customs impounded the tyers. After making the seizer report the customs FIU team deposited the 30 pieces of seized Maxes brand tyers in Hyderabad State Warehouse.

The Customs Intelligence and Investigation team after registering a case of smuggling against accused persons started investigations.

Tuesday December 6, 2016

National

nAB chief asks officials to suggest ways to improve meritocracy D

customs Valuation issues value of polyester yarns

KARACHI

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ISLAMABAD

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ational Accountability Bureau Chairman Qamar Zaman Chaudhry has asked NAB officials to suggest ways to improve regulatory mechanism of federal and provincial governments for meritocracy and compliance with relevant laws. He said NAB Prevention Committees were constituted to deal with Capital Development Authority (CDA), Ministry of Religious Affairs, Agriculture and National Food Security, National Health Services, Regulations and Coordination, FBR, PID, Health, Education, Revenue, Housing, Cooperatives, etc. The Prevention Committee on Ministry of Religious Affairs forwarded recommendations to the ministry, which were considered to provide better facilities to Hajis. “Due to this reason, arrangements made by the ministry were appreciated by Hajis,” said Chaudhry during a meeting held to review the overall performance of the NAB at NAB Headquarters. He said the NAB had

been assigned the duty to eradicate corruption from the country.

“Therefore, we have to redouble our efforts to come up to expectations, but I must bring on record the hard work and commitment shown by all ranks of NAB officials to their national duty, particularly in the last two years,” he said. The NAB prosecuted the corrupt and recovered Rs 279 billion looted public money since its inception.

“The funds allocated to the NAB since its creation are Rs 12 billion, which is only 4.2 per cent of the recoveries made by the NAB.” He said the NAB present leadership had taken several measures to correct structural deficiencies and create an enabling environment to achieve NAB objectives. A meritbased recruitment system was introduced and 104 investigation officers were recruited.

irectorate General of Customs Valuation has issued the reference values for polyester yarns different denier 2 Ply PCT 5402.470. This Directorate General has initiated an exercise to develop database values for different items wherein it has been observed that declarations are of wide range and do not correctly reflect values of the items as traded in the international market. During the scrutiny of previous clearance data, it has been observed polyester yarns different denier 2 Ply falling under PCT headings 5402.470 are being assessed at different values and certain transactions are on very low side.

This Directorate General, after carefully examining the clearance data, also conducted market inquiries to verify the authenticity of declarations. Online prices were also obtained to corroborate the findings of the market surveys. Therefore, has found that the customs values of Polyester Yarns different denier 2 Ply are as follows polyester FDY yarn 108 denier 12 Ply(36 to 48 Filament) all origin $1.92/Kg ,Polyester FDY Yarn 150 denier 2 Ply (48 Filament) $2/Kg. These values are, however, for reference/guidance only and final assessment may please be made after considering other factors which have bearing on the customs value.

fBr notifies rules to determine bonus shares value

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ISLAMABAD

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ederal Board of Revenue (FBR) has issued rules for determination of value of bonus shares issued by a company not quoted on the stock exchange to the shareholders of the company.

The FBR on Friday issued SRO 1085(I)/2016 to make part the procedure to Income Tax Rules, 2002.

Earlier this month the FBR issued draft rules of this procedure for inviting feedback from the stakeholders. In the latest notiOication the FBR introduced Rules 231 G for determination of value of bonus shares

issued by a company not quoted on the stock exchange, to the shareholders of the company.

The sub-rule (1) stated that the value of bonus shares issued by a company, not quoted on the stock exchange, to its shareholders in terms of sub-section (6) of Section 236N of the Ordinance shall be the face value, or the breakup value, as determined below, whichever is higher. 236N. Bonus shares issued by companies not quoted on stock exchange . (1) Notwithstanding anything contained in any law for the time being in force, every company, not quoted on stock exchange, issuing bonus shares to the shareholders of the company, shall deposit tax,

within Oifteen days of the closure of books, at the rate of Oive percent of the value of the bonus shares on the Oirst day of closure of books, whether or not tax has been collected by the company under subsection (3). (2) Issuance of bonus shares shall be deemed to be the income of the shareholder and tax deposited under sub-section (1) shall be treated to have been deposited on behalf of the shareholder.

(3) A company liable to deposit tax under sub-section (1), shall be entitled to collect and recover the tax deposited under sub-section (1), from the shareholder, on whose behalf the tax has been deposited, before the issuance of bonus shares.

(4) If a shareholder neither makes payment of tax to the company nor collects its bonus shares, within three months of the date of issuance of bonus shares, the company may proceed to dispose of its bonus shares to the extent it has paid tax on its behalf under sub-section (1). (5) Tax paid under this section shall be a Oinal tax on the income of the shareholder of the company arising from issuance of bonus shares. (6) The Board may prescribe rules for determination of value of shares under sub-section (1). The sub-rule (2) of Rule 231G stated that the breakup value of the bonus share shall be determined in the following manner.

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No Dutch tax cuts despite tax revenue windfall Tuesday December 6, 2016

World

AMSTERDAM: The Dutch Government has announced that its budget deficit will be much lower than expected this year thanks to strong tax revenue growth.

The Finance Ministry said on November 25 that tax receipts in 2016 are EUR4.3bn (USD4.6bn) higher than forecast thanks to buoyant corporate and personal income tax, and value-added tax revenues.

However, the Government has indicated that it does not intend to use its unexpected tax windfall to finance tax cuts. The surplus cash will instead be used to reduce the deficit and government debt.

As a result, the budget deficit forecast for 2016 has been revised down from 1.1 percent of gross domestic product to 0.4 percent of GDP.

customs police bust traffickers of rice, other grains

iran, romania sign $700 million energy deal TEHRAN

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BEIJING

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hinese customs authorities said Thursday they had solved 57 grain trafOicking cases in the Oirst ten months of the year, involving rice and other grains worth 1.086 billion yuan (157.8 million U.S. dollars).

The smuggled grain, with rice taking the lion’s share, weighed 218,500 tonnes, said the General Administration of Customs.

In August and October this year, customs police in central China’s Wuhan City seized 28,700 tonnes of smuggled rice worth 168 million yuan in six cases, detaining 18 suspects. In October, customs police in the southern city of Nanning seized 1,300 tonnes of smuggled rice, detaining seven suspects.

In November, customs police in southwest China’s Kunming de-

russian poultry exports creep into eu ussia’s much wanted access into the EU poultry export market received a recent boost with the addition of another poultry facility being approved for exports. A quota issue means that progress is still slow, however. The latest farm, a poultry farm of Russia’s largest meat producer, Cherkizovo, has been authorised to export chicken meat to the European Union (EU) from 1st November, a report of the company states. Andrey Terehin, head of Cherkizovo’s Export Development Department explains, EU members are large consumers and importers of chicken and turkey filet, so the European market is among the priorities in Cherkizovo’s development plan of the coming years. Terehin also disclosed that Cherkizovo is already negotiating with some European partners for establishing a first trial supply of chicken to Europe.—CB Report

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tained 19 suspects who had smuggled 32,500 tonnes of rice worth 133 million yuan. Smuggling of rice and other agricultural produce not only affects China’s domestic prices, but also poses threats to food safety as illicit grains escape quality inspection, the authorities said.

Meanwhile, Nine armoured military vehicles, along with compo-

nents and accessories, have been confiscated by Hong Kong customs in a routine inspection at the Kwai Chung terminal, marking one of the biggest seizure of strategic commodities in two decades. Preliminary investigation showed the consignment was being shipped from Taiwan to Singapore, the Post has learned.

Arid Saudi Arabia could need $50 billion in water investment

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rid Saudi Arabia could need more than $53 billion in water sector investment supported by private funds as demand grows, ofOicials said Sunday. The world’s largest oil exporter, whose petroleum revenues fell 51 percent last year on declining crude prices, is pushing to diversify its economy through greater private sector investment and development of new industries. Among government agencies targeted for privatization is

the Saline Water Conversion Corporation (SWCC), which desalinates water from the Gulf and Red Sea coasts. “Future plants will be tendered to the private sector,” Ali alHazmi, SWCC governor, told the government-organized Water Investment Forum. “We have everything ready for privatization.” The desert kingdom, which has no rivers, obtains most of its water from desalination and the rest from ground sources.—CB Report

ran and Romania have signed an initial agreement to build a 1,000-megawatt power station near the Iraqi border, IRNA says.

The agreement was signed during a recent trip by Iranian Foreign Minister Mohammad Javad Zarif to several east European states, the news agency reported.

“The MoU for the construction of a 1,000-megawatt power station in Mehran was signed by Iranian and Romanian investors as one of the achievements of this trip,” Mohammad Azadi, a member of the economic delegation in the visit, said. The project signed between Pichak Sanat Ilam company of Iran and the Romanian side calls for investment of up $700 million, 70% of which will be sourced by the Romanians and the rest by Iran.The

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plant will be built in the Iranian town of Mehran near the Iraqi border and is intended for exports of electricity to Iran’s western neighbor, Azadi said.

Iran is currently exporting some 1,500 megawatts of electricity to Iraq, with a further capacity being established to raise it to 2,000 megawatts. Deputy Energy Minister Houshang Falahatian said earlier this month that Iraq had an outstanding debt of $1 billion to Iran related to the purchase of electricity and the two neighbors were discussing mechanisms to have it settled. Iran is also building a natural gas combined cycle power plant in Iraq’s Basra at a cost of $2.5 billion.

The project by Iran’s MAPNA Group aims to add 3,000 megawatts of electric power to Iraq’s national grid which is saddled with acute shortfalls at its current 8,500megawatt capacity. Iran is also building separate pipelines to transfer its gas to Iraq for power generation in Basra and Baghdad.

SA’s trade account swings to a deficit outh Africa’s trade account swung to a deOicit in October, but the shortfall was lower than forecast as exports performed better than expected. Data from the SA Revenue Services (SARS) showed on Wedesday that the trade balance switched to R4.41 billion in October from a revised R6.9 billion surplus in September. But SARS said exports fell 11.1 percent on a month-on-month basis, while imports were up 0.4 percent. The news rattled the rand with the currency dropping from an opening of R13.8667 to R14.0331 by 5pm. The year to date deOicit of R14.35 billion is an improvement from the comparable period last

year of R59.5 billion. John Cairns at Rand Merchant Bank said October saw the worst trade balance of the year thanks to Christmas-related imports.

Nedbank said these Oigures suggested the weaker rand supported exports while dampening imports. “The rand faces pressures from both the global and domestic fronts, with the US interest rate hike and the uncertain policies of the incoming administration likely to put emerging markets under pressure.” The bank said imports of capital equipment would also remain weak as the private sector remained cautious about committing to large expansion projects.—CB Report

uk could stay in customs union after Brexit

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LONDON

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British government minister has raised the prospect that the U.K. could seek to stay in the customs union even after leaving the European Union, in a further sign that Prime Minister Theresa May’s team may be softening its ap-

proach to Brexit. The government is considering keeping membership of the customs union for certain products, Trade Minister Greg Hands suggested in an interview with Bloomberg this week. He said the government is “looking at broad possibilities” for how such unions can operate, as he explained what May meant when she said in November that membership was not

“binary.” “You can choose which markets, which products the customs unions affect and which they don’t — so there isn’t a binary thing of being inside the customs union or outside of the customs union,” Hands said. “The history of international trade has got all kinds of examples of customs unions.” Europe’s customs union allows members to enjoy tariff-free trade among each

other and imposes the same duties on external countries. Hands’s comments signal the U.K. could be planning to seek agreements on dutyfree trade with the EU for individual sectors, hoping that the likes of Germany will agree so as to protect access to the British market for their own exporters. In a further sign that the government may be relaxing its stance, Brexit Secretary David Davis.

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Customs Court issues warrants for Bashir Dawood, Mariyam Dawood KARACHI: Customs Court Judge Syed Faiz Rasool Rashdi has issued bailable warrants against the absconding accused persons namely Bashir Dawood and Mariyam Dawood who are arrested in a case of concealment of income, furnishing inaccurate particulars of income/ wealth and money laundering. The court also attached their banks accounts as property of the case which was already seized by the State Bank of Pakistan. During the hearing, investigation officer Muhammad Arif filed an application for attachment of property and bank accounts under section 8 of the anti-money laundering act, 2010 in order to protect the public exchequer and also informed the court that above named accused persons are absconders, therefore, court.

collector Ashad Jawad for early clearance of consignment at picT

Tuesday December 6, 2016

National

‘govt to extend all-out support to furniture sector’

customs intelligence impounds smuggled Toyota Land cruiser ISLAMABAD

KARACHI

MuBeen HuSSAin

M fAiZAn

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ollector Customs Collectorate Appraisement East Ashad Jawad takes revisionary steps to ensure early clearance of the imported consignment. According to the source, reacting on the several complaints loadged by the importers, the Collector Model Customs Collectorate (MCC) Appraisement East Ashad Jawad has directed to the officers for the early clearance and release of the imported consignments without taking extra time at the Pakistan International Containers Terminal (PICT).

The source also informed that the daily report has also been sought on the activity at PICT by the Collector Ashad Jawad, whereas has asked the officers that the issues of the grounding must be informed so that terminals operators can be instructed for early resolving the issues faced by the importers.

he Directorate General of Customs Intelligence and Investigation’s special car cell has impounded a nonduty paid smuggled Toyota Land Cruiser V8 bearing fake registration number worth millions of rupees. Sources said that the Customs Intelligence received information through informer that a non-duty paid vehicle, Toyota Land Cruiser V8 bearing fake registration No. BZ-923 Islamabad model 2000 having chassis No. UZJ1000054875 is parked in Street No. 25 F8/2, Islamabad. In pursuance of the information, the staff of special car cell rushed to the spot who found the vehicle at the hinted place. Inspite of hectic efforts nobody came forward to claim the vehicle. Ultimately after waiting more than o4 hours, the vehicle was taken into the custody in presence of the witness and was shifted to the headquarters. The chassis of the vehicle was physically examined and tallied with the record of import, Amnesty Scheme2013and auctioned vehicles available with this directorate general but no record of the same chassis number was found in existed data. During the investigation, it was also found that the said registration No BZ-923 has been allotted to another vehicle having Chassis No. A1J310PK10002703 by the motor registration authority.

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customs exports finalised rebate claims’ list he Customs Collectorate Exports has finalized the list of rebate claims, which has to pay to the different exporters. According to details, the Collectorate after compiling a detailed list has submitted the same before the Collector Exports Muhammad Yaqoob Mako. The sources informed Customs Today that the list containing the names of around 75 exporters whose rebate claims were being in pending since the year 2014-2015. The sources further disclosed that billions of rupees rebate claims will be paid to exporters; adding that the Customs authorities are going to release those rebate claims by the start of next month i.e. December to the exporters phase wise.—S R Khan

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LAHORE

M HAYAT

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he Federal Minister for Commerce engineer Khurram Dastgir Friday said the government will provide a package of incentives and all out support to furniture sector to boost exports as well as improve the quality and design of local handmade furniture at par with international standards.

Talking to media after inauguration of 3-days 6th Interiors Pakistan Exhibition here at Expo Centre, he said that made-in-Pakistan furniture is

in great demand abroad because of its better quality and economically cheap than other countries. He said that holding of this type of exhibition and participation of international players gives soft image of Pakistan globally and attract a sizeable number of other foreign investors. He said that entire credit of this mega exhibition goes to the top leadership of Pakistan Furniture Council headed by Mian Kashif Ashfaq. He said that the government will fully exploit the huge potential of furniture sector and provide a set of facilities for imparting training to workers attached to this sector. Appreciating the efforts of PFC, the minister said it was a

pleasant surprise for him to see variety of classy and outclass local handmade and solid furniture under one roof which has potential to capture foreign buyers in international markets. “Trade fairs are among the most important instruments in business-to-business communications and PFC is holding consecutively exhibitions in different cities of the country for promotion of the furniture industry,” adding he said the government will provide all kind of supports to furniture producers and designers to conduct international exhibitions abroad. He said Pakistan is moving forward in a better position to attract investment.

fBr appoints accountant at Sialkot camp office

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SIALKOT

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he Federal Board of Revenue (FBR) has appointed an accountant at camp ofOice of the Model Customs Collectorate, Sialkot.

Collector Ahmed Reza told Customs Today that Miss Sana has been appointed in Customs Department as accountant by the Federal Board of Revenue (FBR). The FBR has sent her to Sialkot Customs according to her job status. The post of accountant was va-

cant at the camp ofOice of Sialkot Customs and Collector Ahmed Reza Khan assigned her duties at the camp ofOice.

The ofOice deals with the matter of rebate, duty draw back and other refund matters. However the newly designated accountant will check the all account related matters and she will prepare the account statements. She will responsible to submit account statement to Incharge of the OfOice Assistant Collector Choudhary Fahad Bashir every day. However she will also liable to prepare the Oiles of rebate and other refunds as assistant of the ofOice. She

told Customs Today that “I have got job in Customs Department on merit basis after passing written test and qualifying interview. She said that I feeling very well at my place of posting whereas the all ofOicers and ofOicials are very nice and co-operative. Meanwhile, A plan is underway to transfer ofOicers of grade 16 to 19 from the Model Customs Collectorate, Sialkot by the mid of the next month, December 2016. Sources told Customs Today that the higher authorities of the department were preparing a list of the ofOicers, who are going to be transferred

from the region, adding that list will be forwarded to Federal Board of Revenue (FBR) Chairman Nisar Mohammad Khan during Oirst week of December for approval. The FBR would issue notiOication after receiving the list and consulting with Customs member and other authorities. Additional Collector Fiaz Ali, Deputy Collector Waheed Anwar Abro, Deputy Collector Muhammad Hanif, Superintendents Sardar Manzoor and Muhammad Afzal Raza would be transferred, the sources said, adding that transfer will be made on a routine basis.

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ANF foils smuggling of crystal heroin at Lahore airport Tuesday December 6, 2016

Lahore

LAHORE: The Anti-Narcotics Force (ANF) Saturday foiled crystal heroin smuggling bid here at Allama Iqbal International Airport.

The ANF staff during checking intercepted a passenger Nadir Muhabbat Shah and recovered 700 grams of crystal heroin hidden in his luggage in a very technical way. Passenger was travelling from Lahore to Jeddah via PIA Flight Pk-725.

Following the recovery of narcotics, the ANF arrested the passenger. The value of the seized heroin has been estimated at Rs 90 million in international market. The ANF has shifted the accused to unknown place for further interrogation.

LHc reserves verdict on case challenging audit policy of fBr

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LAHORE

MuHAMMAD nAwAZ www.customsbulletin.com

he Lahore High Court (LHC) has reserved verdict o`f case Oiled by more than two thousand businessmen in which the selection of cases for audit through random ballot by the Federal Board of Revenue (FBR) was challenged.

As per details, Justice Shahid Jameel Khan of Lahore High Court (LHC) heard the appeals Oiled by the businessmen against selection of cases for the year 2014 for audit by the Federal Board of Revenue.

During the hearing counsel of appellant Muhammad Mohsin Virk argued before the court that Federal Board of Revenue (FBR) has sent notices for the year 2014 section 214 (C) and of Income Tax Act and section 72 (B) of Sales Tax Act. FBR selected the cases through random

govt to reimburse rs 500m duty to chinese contractors he Punjab government will pay customs duty on the Chinese contractors’ goods, articles and machinery which would be used in construction of Orange Train project. According to sources, the Punjab government will pay Rs 500 million as customs duty on all the machinery and other accessories that will be used for building up Orange Train. The sources said that the government has approved to reimburse the customs Rs 500 million customs duty. The sources said that the customs duty would be reimbursed to the Chinese contractors in accordance with the agreed plan. It was said that the government of Punjab will also approach to the Federal Board of Revenue (FBR) for the exemption of customs duty on the machinery and other equipment’s for the Orange Train. The companies that imported machinery and equipment for the Orange train would be exempted from customs duty and other taxes one the deal with the federal government is done.—CB Report

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ballet for audit and sent notices for the provision of record. However, without provisions of tax audit rules the Federal Board of Revenue (FBR) cannot select any case for audit so, the selection of cases of business institution is illegal. He argued that Lahore High Court already in year 2011 has set principals in such type of cases. On the other side the counsel of Federal Board of Revenue (FBR) told the court that FBR has established audit policy and selects cases under the rules and procedure for audit. So the court may suspend applications by businessmen.

After hearing the arguments from both sides Lahore High Court (LHC) has reserved its verdict in the case that will announce very soon.

Meanwhile, According to details, Justice Shahid Karim heard the case Oiled where counsel for appellant Mohsin Virk argued that a team of Inland Revenue.

customs ASo impounds mobile phones from ravi road T

LAHORE

M HAYAT

www.customsbulletin.com he Customs Anti-smuggling Organization (ASO) on Friday recovered smart phones of assorted brands of Nokia and Samsung worth Rs 35 million from Ravi Road, sources told Customs Today.

The ofOicial sources said that upon receipt of a secret information passed by the Chief Collector Customs Central Region Samaira Nazir, and on the directions of the Collector Customs Preventive Lahore ZulOiqar Younas, the Additional Collector Headquarters Nayyer ShaOique constituted a team headed by Assistant Collector ASO Muhammad Asim Awan which comprised Superintendent Waqar Ahmad Cheema, Deputy Superintendent Mazhar Abbas Butter, and Inspector Sajjad Bukhari.

The sources added that the said team after intensive monitoring intercepted a Suzuki pick-up bearing

post clearance Audit detects tax evasion by cMpA

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ustoms Post Clarence Audit (PCA) has unearthed duty and tax evasion by M/s CMPA LDI Pvt Limited by way of misclassiOication of servers from telecommunication use as servers for computers.

The PCA has informed the importer of the clearance data effected from Customs Collectorate Islamabad during January 2012 onward has revealed that the importer got clearance imported server for telecommunication use by misclassifying under PCT heading 8471.5000 as

server for computers, paying customs duty @ 0 percent, one percent and two percent instead of classifying under correct PCT heading 8517-6290 (other machines for the transmission or reception of voice, images or other data, including switching and routing apparatus) attracting customs duty @ 20 percent. It was said that the company deposited short payment worth Rs 1,518,430. The PCA has asked the company to pay the evaded amount of duty and taxes.—M Hayat

registration no.LEG-1893 at Old Ravi Bridge early morning of 25.11.2016 and recovered 3493 foreign origin non duty paid/smuggled Samsung and Nokia smartphones with thousands of batteries and accessories concealed in vegetable crates. Two individuals have been taken into custody and further investigations are still underway. The value of the recovered phones is estimated to be

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about Rs 35 million, it was reported reliably. The sources said that the team of ASO Lahore under the supervision of Collector Customs Preventive Lahore, ZulOiqar Younas has once again served a huge blow on the grey trafOic of mobile phones.

Earlier in October, the ASO Lahore in a similar operation recovered about 1000 latest model smartphones valuing millions of rupees.

nazeer Ahmed made customs judge

ahore High Court (LHC) appointed District and Session judge of Lahore Nazeer Ahmed Gajjana as acting judge of the Special Court of Customs Taxation and Anti Smuggling. According to details, Lahore High Court has issued notiOication of appointment of District and Session Judge of Lahore as acting judge of Special Federal Court of Customs Taxation and Anti Smuggling until a full time judge take responsibilities in the special court. Earlier in the beginning of November the Lahore High Court has transferred Chaudary Ameer Muhammad Khan as District and Sessions Judge of Sahiwal district.

Meanwhile, The Punjab government will pay customs duty on the Chinese contractors’ goods, articles and machinery which would be used in construction of Orange Train project. According to sources, the Punjab government will pay Rs 500 million as customs duty on all the machinery and other accessories that will be used for building up Orange Train.

The sources said that the government has approved to reimburse the customs Rs 500 million customs duty.

The sources said that the customs duty would be reimbursed to the Chinese contractors in accordance with the agreed plan.—M Imran Mehar

poL: LHc issues notices on plea against extra sales tax

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LAHORE

MuHAMMAD nAwAZ www.customsbulletin.com

he Lahore High Court (LHC) has issued notice to the Ministry of Finance and Attorney General of Pakistan in a case pertaining to extra sales tax on petroleum products. Pakistan Tehreeke-Insaf woman leader Andleeb

Abbas challenged the extra sales tax on petroleum products in the LHC on November 23. The counsel for the petitioner, Shiraz Zaka, submitted that the federal government could not impose sales tax on petroleum products without getting approval from parliament, as per Article 77 of the Constitution.

However, 17 percent sales tax is being charged on petroleum prod-

ucts without seeking approval from parliament, he added. He said despite fall in prices of the petroleum products in the international market, the government fail to provide relief to the people. In the petition appellant appeal to the Lahore High Court to order the government to stop the extra sales tax collection on the petroleum products because extra collection

of sales tax is burden on general public. After hearing arguments from the appellant side Lahore Issued Notice to the Federal Ministry of Finance and Attorney General of Pakistan and seeks reply on next date of hearing. Earlier, same petition was filed by leader of the Opposition in Punjab Assembly Mian Mehmood-ur-Rashid in the Lahore High Court.

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Ports minister resists Chinese investment WASHINGTON: The Ports Minister for Sri Lanka, Arjuna Ranatunga, has declared his objection to a 99 year lease of the Hambantota port to the Chinese, according to local media sources. The legality of the lease is under fire, the minister is instead proposing a privatisation deal; the Prime Minister of Sri Lanka, Ranil Wickremesinghe has stated that 80% of the port will be sold to China for US$1 billion upfront on leasehold. The same lease was used to hand Hong Kong over to the British Empire under the second convention; both the Ports Minister and his Deputy have publically disagreed to the deal, stating space was granted for privatisation by a concession of around 35 years.

Shapoorji pallonji set to acquire 51% in gopalpur port hapoorji Pallonji has agreed to buy a 51% stake in Odisha’s Gopalpur port. Orissa Stevedores Ltd (OSL), one of the three original promoters, will hold the remaining 49%. This comes as OSL’s founder Mahimananda Mishra is wanted by police investigating a murder that took place last month.

The second private port in Odisha, the Gopalpur project was won by a consortium of OSL, metal trader Sara International and Hong Kongbased Noble Group in 2006. Developed from a minor to an all-weather port on a BOOT (Build, Own, Operate, Transfer) model, any change in ownership requires state government approval. Noble exited

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the special purpose vehicle (SPV) in 2010. Shapoorji will be mostly acquiring Sara International’s stake. A Shapoorji Pallonji group spokesperson confirmed the acquisition plan and said it would invest fresh money in the port. “At this stage of the transaction, due diligence and documentation are in progress and government clearance is awaited.

This acquisition is a part of our larger group strategy to play a meaningful role to build marine infrastructure particularly around development of bulk, liquid and LNG (liquefied natural gas),” said the spokesperson in an email. A senior official in the Naveen Patnaik government confirmed the application was pending with it.

Halfway between Paradip port and Vishakapatnam, Gopalpur was well placed to serve the plant Tata SteelBSE 1.22 % was planning to build nearby at the time that bids were floated.—CB Report

Ports & Shipping

panama canal, ports decline in economic results WASHINGTON

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rom January to September 2016, the income from ships that crossed thed Panama Canal and the movement of cargos in ports of the country dropped, according to the report of the National Institute of Statistics and Census (INEC) published here. These Oigures are in contrast with the report of the Canal Authority (ACP) which registered the third highest annual tonnage of its history in Oiscal year 2016, period that comprises from October 1st 2015 to September 30th of 2016, period in which transited the canal 13 thousand 114 ships, of them 238 PostPanamax (great size).

‘Despite the deceleration of the international maritime trade during last year, we have registered on of the highest annual tonnages since the opening of the original canal 102 years ago’, said last October the administrator of the Canal Authority, Jorge Luis Quijano. This reinforces the continuous strategic importance

of the route and the increasing value that recent investments in the Canal will bring to the maritime industry’, he said. Despite that success, the INEC counted, in the Oirst nine months of this year, a fall of 6.6 percent in the transits compared to the same period of 2015, and proportionately also dropped the volume of the cargoes, although he recognized an important compensation last September. The weight in that recovery corresponded to the new locks open to trade last

June 26 and that favoring the crossing of ships with greater capacity, it opened a segment of mariket characterized by high cargo volumes per ship and, in consequence, burdensome tariffs for crossing. In the stage January-September, revenues from tolls in the Channel were one billion 427 million 760 thousand dollars, 3.7 percent less than a similar period the previous year, while merchandise transferred were 3.3 percent points less, according to INEC.

Tuesday December 6, 2016

reliance ports gets rs 17.67 billion irregular tax benefit AG has pulled up the Income Tax department for giving benefit of Rs 1,767 crore to the port and terminal arm of Reliance IndustriesBSE 0.16 % by allowing deductions meant for public facilities to the company’s captive jetties. CAG said the income tax assessing officer (AO) allowed deduction of Rs 5,245.38 crore to Reliance Ports and Terminals Ltd towards construction of four captive jetties at Port Sikka in Gujarat without examining the eligibility criteria for allowance of the deduction. In a performance audit of tax holiday for development of infrastructure sector, which was tabled in Parliament today, CAG said: “The irregular allowance of deduction by the AO has resulted in under assessment of income of Rs 5,245.38 crore involving tax effect of Rs 1,766.74 crore”. The Comptroller and Auditor General of India (CAG) said that since the jetties were captively used by Reliance Ports and not for public purposes, “deduction allowed (by AO) was not in order”. The Income Tax department, however, did not accept the observation of CAG and said the I-T Act did not distinguish between “public facility” and “private facility.—CB Report

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Brownsville port thrives as Mexico steel gateway A

WASHINGTON

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unique niche in serving Mexican manufacturers has helped the Port of Brownsville, Texas, avoid the downturn in steel volumes that has affected other US ports.

Brownsville sits at the southern tip of Texas and serves as a gateway for breakbulk shipments of steel destined for manufacturing plants across the Rio Grande in Mexico. It’s a steady business that hasn’t been hit by soft demand or antidumping duties. Last year the port handled about 3.3 short tons of steel, mostly slabs. This year’s volume is expected to hit 3.4 million or 3.5 million tons, said Steve Tyndall, the port’s senior director of marketing and business development. Despite questions that the recent presidential election has raised about the future of USMexico trade, Brownsville ofOicials

foresee no letup in steel volumes.

“We don’t see it diminishing. We see it growing,” Tyndall said. The port handled 10 ships laden with steel slabs in October, and expects to receive another half-dozen or more by year end. Slabs are trucked to the Monterrey area via a heavy-lift corridor from the port that allows vehicles to match the 125,000-pound maximum gross weight limit permitted on Mexican highways, or move by railcar. Though slabs dominate steel volume at Brownsville, the port also handles steel coils for Mexican and US customers, including a coil-slitting operation in Mission, Texas. Other general cargoes at Brownsville include aluminum, lumber, wind energy components, and project shipments. Wind energy shipments have become important cargoes at several ports in Texas, which has more electricity-producing wind farms than any other state.

Brownsville has completed three wind project movements this year, and has at least two lined up for 2017. To provide more laydown space for blades and other windmill components, this year the port expanded a 16-acre storage yard to 26 acres. The port has handled some windmill blades as long as 223 feet, although most are about 165 feet.

Brownsville also is targeting project shipments. Last year the port added a second heavy-lift dock and took delivery of a 125-ton-capacity mobile crane that can be used in tandem with an older 100-ton model. Though low oil prices have slowed development of energy-related projects, several potential projects remain in planning or permitting stages, including three liqueOied natural gas projects that are awaiting federal permits, and a proposed $2.1 billion offshore natural pipeline between Brownsville and

Tuxpan, Mexico. Meanwhile, NYK Line subsidiary NYK Ports and Macquarie Infrastructure Partners III announced this week it had purchased a 20-per-cent share in Maher Terminals, which operates a terminal in the New York and New Jersey.

CMA CGM Tage, which last called in Halifax Oct. 1 is the biggest yet to dock here, with a capacity of 9,365 TEU. The 8,749 TEU Hapag-Lloyd Budapest Express, has called at Ceres. Halifax also welcomed its largest cruise vessel, the 4,180-passenger Royal Caribbean International Anthem of the Seas, he said.

The Port of Halifax, with no changes to existing infrastructure, can berth a vessel up to 16,000 TEU currently, but the goal of a master planning process is to identify ways to berth two 13,000-14,000 TEU vessels simultaneously. “ With the widening of the Panama Canal, the additional lane of the Suez Canal.

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Customs Intelligence impounds smuggled Toyota Corolla Altis ISLAMABAD: The special car cell of the Directorate General of Customs intelligence and investigation has impounded a non-duty paid Toyota Corolla Altis during a raid. Officials told Customs Today that acting on information, the staff of the special car cell intercepted a car bearing Registration No AAA-462 near Cantt area, Rawalpindi. The owner of the car named Muhammad Umar was asked to provide documents regarding legal import of the vehicle, but he failed to produce any legal proof regarding import of the vehicle or payment of customs duty.

Tuesday, December 6, 2016

CUSTOMS BULLETIN

Hyderabad ASo seizes smuggled cigarettes, gutka HYDERABAD ASLAM AnJuM QureSHi www.customsbulletin.com

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he Customs Anti-Smuggling Organisation (ASO) has foiled a bid to smuggle cigarettes and seized 20 cartons of Pine cigarettes and gutka worth Rs 908,000 during two actions.

Following the instructions of Hyderabad Customs Collector Agha Shahid Majeed, the ASO team under the supervision of Additional Collector Omer ShaOique conducted the operations in the region to curb smuggling. The team raided Pathan Colony Sarfraz Road, Hyderabad and seized cigarettes which were allegedly being smuggled from Hyderabad. After making seizure report, the ASO team deposited the conOiscated cigarettes to Hyderabad State Warehouse. The team comprising Superintendent Sikander Akbar Phanwar, Deputy Superintendent Anwar Ahmed Siddiqui, Inspector Waqar Ahmed Baig, Inspector Syed Nazim Ali, Inspector Dhakeel Khan Sepoyes Essa, Abid Raza and other participated in the operation. In another raid, the Hyderabad ASO seized 38 bags of Indian origin gutka worth Rs 658,000 involving duty/taxes amounting to Rs 260,000. Following a tip-off re-

ceived through Model Customs Collect orate Hyderabad Agha Shahid Majeed, the ASO team conducted raid in an area of Hyderabad to foil the

smuggling bid. Under the supervision of Additional Collector Omer ShaOique, ASO team comprising Inspectors Waqar Ahmed Baig, ShaOi

Mohammad Jamali Inspector Mushtaq Ali Lakho and others conducted search operation of a vehicle and recovered 38 bags of smuggled Indian

gutka being smuggled from Karachi to Hyderabad. A case has been registered against the accused under the customs law.

SHc issues notice to tax authorities on Lovenzo industries’ plea KARACHI

M BiLAL

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he Sindh High Court (SHC) issued notices to the tax authorities and deputy attorney general of Pakistan on a constitutional petition Oiled by M/s Lovenzo Industries against Oixation of rate $2.00/kg instead of $1.75/kg on baby diapers.

While the hearing of the petition, a two-member bench, com-

prising Justice Irfan Sadat Khan and Justice Muhammad Humayun Khan, also directed the respondents to Oile their respective comments on the next date of hearing.

The court adjourned the hearing for November 28, 2016.

Earlier, counsel for the petitioner stated that petitioner is engaged in the manufacturing of sanitary items including baby diapers which are manufactured at the facility of the petitioner in Pakistan and for the purpose of such manufacture, the petitioner procures/ purchase various raw material from the local market as well as international for

source such as China. According to the petitioner, respondents issued impugn order pursuant to revision petitions Oiled by the persons/ entities against the valuation ruling no 926 of 2016 dated 08/09/2016 and Oixed the rate of US$ 2.00/kg illegally, he argued that actual price paid/ payable for the impugn item by the petitioner at or About at the rate of US$ 1.75/kg. Citing Chairman Federal Board of Revenue (FBR), Director General Directorate of General of Customs Valuation and Collector of Customs Model Customs Collectorate Appraisement East as respondents, peti-

tioner pleaded the court may declare act of the respondents is illegal, mala Oide and arbitrary, petitioner also pleaded the court may set aside impugn order of the respondents. Meanwhile, The Sindh High Court (SHC) has sought comments from the petitioner on a constitutional petition Oiled by M/s Mansoor Foods Karachi challenging the impugn categorization and valuation (8 to 20 mesh) at the rate of $2.74 and (21-40 mesh) at the rate of 4.24/kg. A two-member bench, comprising Justice Irfan Sadat Khan and Justice Muhammad Humayun Khan, was hearing the

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

petition. During the hearing, counsel for the petitioner sought time to submit comments, therefore, the court adjourned the hearing for the date which would be announced by the SHC ofOice. Earlier, counsel for the petitioner stated that petitioner is a regular importer of sodium saccharine (20-40) mesh at the rate of $2.75/kg, however, respondents issued said valuation ruling and categorized the valuation (8 to 20 mesh) at the rate of $2.74 and (21-40 mesh) at the rate of 4.24/kg illegal, mala Oide indention which creating hardship for the importers.