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ISLAMABAD

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he North Region has surpassed assigned revenue collection target with extra amount of Rs.3208.47 million under all heads from July to November during Qinancial year 2017-18.

Chief Collector North Region Sartwat Tahira Habib told Customs Today that during Qinancial

year (July to November) 2017-18 the North Region comprises (Islamabad, Peshawar, Samberial and Gilgit Baltistan) have been assigned revenue collection target with amount of Rs.14221.24m under all heads while it was received Rs.17429.71 million under same head during said period, the North was earned Rs.13790.58m under alike heads during identical period of FY16-17.

The sources told that from July to November FY17-18 the Customs

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Collectorate earned Rs6782.73m under head of all duty taxes against assigned revenue target of Rs5355.12m, sources was notify that the Islamabad Collectorate was earned Rs4998.26 million under similar heads during same period of correspondence FY16-17. The Collectorate of Peshawar received Rs9437.83m under head of all duty taxes against assigned revenue collection target of Rs.8236.50 million.

MCC Islamabad earmarked a little more revenue target than 1Q target

PCA detects tax evasion of Rs 9.75m

by M/s Junaid Ilyas and Company

Customs Preventive recovers 370 mobile phones from Babu Sabu

PM Abbasi for exploiting full potential of dairy industry

Peshawar Customs collects Rs2104.43 million during November

MCC Islamabad has been assigned a revenue collection target for 2nd Q | SEE pAgE 02 |

PCA has detected duties and tax evasion of Rs 9.75m allegedly | SEE pAgE 03 |

Customs Preventive recovered 370 mobile of American brands from a rickshaw | SEE pAgE 04 |

PM Abbasi directed that all necessary measures be adopted for exploiting | SEE pAgE 11 |

MCC collected Rs2104.43m against the assigned target of Rs 1784.04m | SEE pAgE 16 |

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Customs Tribunal reserves verdict on references filed by M/s Pak Gulf Thursday, December 7, 2017

ISLAMABAD: The Customs Appellate Tribunal (CAT) on reserved a decision on a couple of customs references involving Directorate General of Investigation and Intelligence and Model Collectorate of Customs, Islamabad.

A single bench of the CAT comprising Member Technical Ziauddin Wazir heard the references. The bench reserved a decision on references filed by M/s Pak Gulf Construction (Private) Limited, and Raja Nabeel Razaq.

M/s Pak Gulf Construction (Private) Limited had filed a case for release of imported panel sheets, commonly used for buildings outer renovation.

Islamabad

mcc Islamabad earmarked a little more revenue target than 1Q target

ISLAMABAD

ISLAMABAD

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ith the submission of records, the Islamabad High Court (IHC) continued the hearing of arguments on cases filed by Collector Customs and M/s Pakistan Tobacco Company Limited (PTCL). A division bench of the IHC comprising Justice Athar Minallah and Justice Miangul Hassan Aurangzeb heard the arguments. On the previous hearing, the bench had issued directives while hearing a customs matter submitted by Model Collectorate of Customs and another tax case from M/s PakistanTobacco Company Limited. The Collector Customs had filed the case against Nusrat Yaqoob. The matter had been pending with the court since 2014. M/s Pakistan Tobacco Company Limited had filed challenging a show cause notice issued by the Large Taxpayers Unit, Islamabad. M/s Pakistan Tobacco Company Limited had contested show cause notices issued by the field offices of Federal Board of Revenue. According to details, M/s Pakistan Tobacco Company Limited had challenged recovery of issued to it in head of outstanding sales tax by the LTU, Islamabad.

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he Model Customs Collectorate Islamabad has been assigned a revenue collection target for 2nd Quarter (October to December) 2017-18 of Rs3537.84million under the heads of all duties and taxes.

According to details given by ofQicial source of the Model Customs Collectorate (MCC) Islamabad that the MCC Islamabad has increased a little amount in assigned revenue collection target for 2nd Quarter against 1st Quarter’s target.

The collectorate was allocated Rs3118.07million under all the heads for July to September FY1718 while it was earmarked Rs2829.00million under the same head for the same period of FY1617. The sources told CT that, during first two months of 2nd Quarter (October and November), the collectorate was assigned respectively Rs990.84million under the head of all taxes during the month of October FY17-18 whereas it was allocated Rs1246.21million under all the heads during the month of November FY17-18. The Collectorate of Islamabad was earmarked Rs1300.79million for the month of December FY17-18 under all the heads.

Sources further said that, during 1st Q of FY17-18, the MCC Islamabad

Ihc hears case filed by collector of customs against pTcL

has been assigned Rs1268.89million of Customs Duty (CD), Rs1135.81million as Sales Tax (ST), Rs78.63million of Federal Excise Duty (FED) whereas assigned Rs634.74million as Income

Tax (IT). The Islamabad Collectorate was earmarked a revenue collection target under all the heads for 1st Q of FY16-17. He added that Rs1119.00million was allocated as

CD, Rs1017.00million assigned of ST, Rs60.00million earmarked as FED while Rs633.00million of revenue collection target was assigned under the head of IT.

customs Tribunal reserves verdict of case filed by m/s chief Autos

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ISLAMABAD

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ustoms Appellate Tribunal Member Ziauddin Wazir on Wednesday reserved a decision on M/s Chief Autos’s customs matter after hearing the concluding arguments from sides. The bench on the last hearing had issued directives to the parties to Qinalize their arguments in a couple of customs matters.

The tribunal was hearing the cases Qiled against Model Collectorate of Customs. The bench dated in ofQice the hearing of another customs case Qiled by M/s Fazal Razaq.

M/s Fazal Razzaq had contested a decision announced by Directorate General of Intelligence and Investigation, Islamabad.

In recent weeks, Ziauddin Wazir had also heard a number of cases along with Justice (r) Malik Manzoor Hussain. The bench had heard M/s National Highway Authority’s

case which had challenged a decision announced by MCC’s collector

customs before the tribunal. The bench had reserved decisions on

M/s Waseem Autos and M/s Nisar Traders cases. M/s Waseem Autos and M/s Nisar Traders had filed cases against Model Collectorate of Customs and Directorate General of Investigation and Intelligence, Islamabad. The bench had dated in office hearing on cases filed b M/s Parts & Parts, M/s Chief Autos, M/s Aman Elahi, M/s Kohinoor Traders, M/s Saleem Silk Centre, M/s Five Star Trading, M/s Pakistan Royal Group and M/s Nayatel Private Limited.

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SHC adjourns hearing of petition filed by M/s Shaikh Pipe Mills KARACHI: The Sindh High Court (SHC) directed parties to file comments on a constitutional petition filed by M/s Shaikh Pipe Mills (Private) Limited, challenging enhancement of the value of prime hot rolled coils from $415 to $448 MT. A two-member bench, headed by Justice Munib Akhtar, was hearing the petition. Earlier, the petitioner, through his counsel, stated that he was engaged in the business of manufacturing MS Pipe/ GI Pipes and Gold Rolled Coils and fulfills all his liabilities properly. According to the petitioner, it is seriously prejudiced by the actions of the Collector of Customs Model Customs Collectorate East, being a government functionary and working under chairman Federal Board of Revenue.

fBR says no advance tax on property deals held for over three years

Thursday December 7, 2017

Karachi

pcA detects tax evasion of Rs 9.75m by m/s Junaid Ilyas & co

KARACHI

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he Federal Board of Revenue (FBR) has decided not to collect advance income tax on immovable property transactions held for a period exceeding three years under Section 236C of the Income Tax Ordinance. Income earned as gain from disposal of the property is subject to tax under section 37 of the Income Tax Ordinance, 2001 under the head income from capital gain. Also, there is no tax on income from capital gain under the aforesaid section, if the holding period of immovable property is more than three years. However, where a person makes investment but fails to explain the source of such investment.

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Zubair lauds industrial role in economic growth KARACHI

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indh Governor Muhammad Zubair has said that the industrial sector was playing an active role towards the economic prosperity in the country. He was talking to a delegation of the Korangi Association of Trade and Industry (KATI) at the Governor House here, under the leadership of its patron in chief, S.M. Muneer. The Governor pointed out that increase in industrial activities not only help spur economic activities but also contribute towards poverty alleviation and creation of job opportunities. He said that the government was taking steps on priority basis for the development and rehabilitation of infrastructure in the industrial areas.

Zubair pointed out that in spite of electricity shortfall, the government ensured continued power supply to the industrial areas.

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KARACHI

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he Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 9.75 million allegedly

by M/s Junaid Ilyas and Company, it is learnt. The ofQicial sources told Customs Today that M/s Junaid Ilyas and Company imported a consignment of food essence and different kinds of food colours under the PCT Heading 2405.3408 and got it cleared from the Port Qasim Karachi vide GDs on September 19, 2017 by paying customs duty at 12 percent after claiming a beneQit of SRO 566/2007 by the hand of Appraiser Ghulam Mujtaba and Appraiser Kamran Ghori.

However, the subject item is correctly classiQiable under the PCT 2407.5609 attracting customs duty at 12 percent and income tax at 16 percent. Thus, by way of mis-declaration of classiQication, M/s Junaid Ilyas and Company evaded/ shortpaid Rs 9.75 million.

So the importer has violated the provisions of Section 34 (3) (7) & (8B) of the Customs Act-1969, Section 6, 9 & 18 read with Section 66 of the Sales Tax Act-1990 and Section 159 of Income Tax Ordinance 2001 punishable under clauses (7) and 22 of Section 167(8) of the Customs Act-1969, Section 22 (8) of the Sales Tax Act-1990 and Section 147 & 185 of Income Tax Ordinance

2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of Sales Tax by the importers) and under relevant provisions of Income Tax Ordinance 2001. Accordingly, an audit observation was issued to M/s Junaid Ilyas and Company for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes.

The official sources told customs Today that m/s Junaid Ilyas and company imported a consignment of food essence and different kinds of food colours under the pcT heading 2405.3408 and got it cleared from the port Qasim karachi

Shc adjourns hearing of mis-declaration case till Dec 8

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KARACHI

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Sindh High Court’s customs appellate bench has adjourned hearing in a mis-declaration application till Dec 08.

The application was filed by one Munaf who allegedly paid the duty and taxes from his account in a declaration filed on behalf of Jameela and company

which imported a consignment comprising perfumes, body spray and cosmetics.

The Directorate of Investigations and Intelligence (I&I) lodged a FIR as according to the custom officials, the perfumes were not declared in the Goods declaration.

During investigations respondent I&I nominated Munaf in the case at later stage while his name was not mentioned either in the FIR or in the charge sheet.

The applicant was not in the country at relevant time when the alleged crime was committed, the counsel appearing for Franklin Law Associates submitted that applicant was not available in the country when alleged mis-declaration was alleged. No loss or duty evasion was found instead huge sum of money was deposited in the treasury by the applicant, counsel submitted seeking exoneration of the applicant/accused.

Meanwhile, The Directorate of Customs Post Clearance Audit has detected an evasion of duties and taxes of Rs14million by M/s Usman S Traders Karachi, it is learnt.

The ofQicial sources told our reporter that M/s Usman S Traders Karachi imported a consignment of different newspaper colors and chemicals and printing machine parts from Italy under the PCT Heading 3408.3489 and got it cleared from the PCT Karachi.

Rice export rises 16.87% in 4 months ice export from the country during first 4 months (July-October) of current fiscal year increased by 16.87 per cent as compared to same period of last year. The rice export during the period under review rose to $457.66 million from $391.595 million during July-October 2016-17, according to latest data released by Pakistan Bureau of Statistics (PBS).

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FTO hears tax refund appeals filed by Muzaffar Iqbal Thursday December 7, 2017

Lahore

LAHORE: The Federal Tax Ombudsman (FTO) has postponed the hearing of a case filed by Muzaffar Iqbal against the Regional Tax Office (RTO) Sialkot until the next hearing.

FTO Advisor Munawar Ghafoor heard the petition in which counsel for appellant argued that the RTO Sialkot has not released the refund to the appellant since two years.

He said the RTO Sialkot has been collecting excessive tax from the appellant for the last two years. The company approached the officer concerned many times for release of refunds but the department did not entertain the application, even after the passage of a reasonable time.

fTo postpones hearing of appeal filed by m/s haroon Brothers LAHORE

SAJID nAwAZ

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he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Qiled by M/s Haroon Brothers Steel against the Regional Tax OfQice (RTO) Gujranwala until the next hearing.

According to details, FTO Advisor Incharge Haji Ahmed heard the complainant number FTOLHR/000016/17 in which the counsel for the appellant argued that the RTO Gujranwala has not released the refund to the appellant of from last two years.

He said that the RTO Gujranwala collected excessive tax from the appellant during the last two years.

The company approached the officer concerned many times for is-

huge quantity of nDp cigarettes seized in Sheikhupura he Federal Board of Revenue (FBR) RTO-II Anti-Tobacco Unit raided two godowns in Sheikhupura and impounded 700 cartons of non-registered brands of cigarettes evading federal excise duty and sales tax. Sources told Customs Today that on receiving information, Commissioner RTO-II Madam Yasmin Fatima constituted a team led by Additional Commissioner Azhar Jahangir that raided the godowns and successfully recovered 700 cartons of non-registered cigarettes. Assistant Commissioner Sulman Naveed Butt, Deputy Director Asim Dilshahd and spoyes also took part in the raiding. The sources said that the total value of the cigarettes was calculated at Rs 13 million. Additional Commissioner Azhar Jahangir said that backward areas and countrysides are major markets for such non-registered brands of cigarettes. –CB Report

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suance of refunds but the department did not pay the refunds after the passage of a reasonable time.

Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO), seeking interference in this case. The counsel appealed the FTO advisor to direct the commissioner of RTO Gujranwala to clear the refund claims.

The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer.

On the other hand, counsel for the RTO argued that the appellant has not submitted all record in the office on basis of which it is claiming for refunds. If appellant provides accurate record, the RTO will issue the refunds if any after proper assessment, he added.

customs preventive recovers 370 mobile phones from Babu Sabu

LAHORE

m hAYAT

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ollectorate of Customs Preventive recovered 370 mobile phones of American

court grants two-day physical remand of mobile-phone smuggler

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he Special Federal Court of Customs Taxation and AntiSmuggling has approved a two-day physical remand of the accused held in smuggling of mobile phones and some other items as well from Lahore. Accused, identiQied as Afghan citizen Muhammad Nawaz, was arrested by the customs intelligence authorities from Lahore when he was coming to supply a big quantity of smuggling cell phones to Hall Road market which is the largest mobile market of Pakistan.

He was intercepted by the customs authorities. The customs intelligence authorities conducted an operation on the intelligence based information. The customs intelligence recovered a big quantity of smuggling and non-custom-paid mobile phones and accessories from the possession of the accused. The worth of the recovered items is more than Rs7million in the local market. The accused caused the treasury a big loss in the wake of duties and taxes. –CB Report

brands from a rickshaw afternoon.

Sources told Customs Today that Collector Customs Collectorate of Preventive Faiz Ahmad received credible information about some smuggling attempts. He immediately constituted a team comprising Superintendent Nasir Minhas, Deputy Superintendent Agha Qadeer, Inspec-

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tor Gulzar Bhatti, Inspector Farooq Aslam and Inspector Mujahid Khan.

The team established many check points on main entry and exit points of the city and started checking vehicle. The Customs Preventive team intercepted a rickshaw. During checking customs team recovered 370 American BLU brand mobile phones.

The passenger of the rickshaw who was later identiQied as Umeed Ghalib claimed the ownership of the mobile phones. He told customs team that he brought all these mobile phones from Peshawar and going to supply to main market of Lahore. Customs Preventive team asked the him to provide any relevant documents regarding purchase and transportation of these mobile phones but he remained failed to provide any relevant legal documents. After his failure Customs Preventive team seized the entire mobile phones and after registering a case of smuggling against the accused person according to customs act and started investigations.

customs Tribunal hears seven cases he Customs Appellate Tribunal division bench-II comprising Omer Arshad Hakeem, Member Judicial and Imran Tariq, Member Technical heard seven cases and adjourned all for different dates. The division bench-II, comprising Omer Arshad Hakeem, Member Judicial and Imran Tariq, Member Technical, heard seven cases including Al Rehman Febrics versus Directorate of Intelligence and Investigation Faisalabad, Gogha Shahbaz versus Directorate of Intelligence and Investigation Faisalabad, Customs Multan versus H&D Enterprises. On ,

same bench heard appeals of Customs Multan versus Muhammad Amin, Hanif Radio versus Directorate of Intelligence and Investigation Lahore, Elite Enterprises versus Customs Faisalabad and Hazoor Buksh versus Directorate of Intelligence and Investigation Multan. Customs Appellate Tribunal division bench adjourned all cases into next date. Today on Friday and Saturday Tribunal will not hear any case and will starts hearing on Monday regularly. The parties are informed already about the cases and counsel will appear and argues. –CB Report

customs recovers alcohol, mobile accessories at Lahore Airport

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LAHORE

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he Customs ofQicials have conQiscated as many as 16 alcohol bottles from passengers travelling via different Qlights during raids at Allama Iqbal International Airport. Sources told Customs Today that the ofQicers conducted opera-

tions in different Qlights from different countries. The Qlights were coming from Dubai to Lahore, Turkey to Lahore, Jeddah to Lahore and Muscat to Lahore. The Customs authorities took action in PIA, Turkish Airways, Gulf Air and Saudi Arabian Airlines.

During the actions in these Qlights, the customs staff recovered 16 bottles of alcohol. The Customs allowed all passengers to go after conQisca-

tion of alcohol bottles from their possession. Customs has also conQiscated one LED of 32 inches from a passenger. Dozens of cell phones, wireless sets and mobile accessories were also recovered from Lahore airport.

The security ofQicers have launched an investigation into the matter. Customs team has started strict checking of the luggage of the passengers specially coming from European coun-

tries. Smuggling attempts are being foiled by the customs authorities.

Number of attempts of smuggling of mobile accessories and other relevant items has foiled by the customs during these days. It is common practice that passengers coming from European countries carries bottles of alcohol with them but many times they left that in premises of airport to avoid from being arrest.

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Thursday, December 7, 2017

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LAHORE m ImRAn mEhAR www.customsbulletin.com

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he Collectorate of Customs Appraisement has attained growth of 9 percent during the month of November of Qinancial year 2017-18 as compared to the corresponding month of the Qiscal year 2016-17.

The Customs Appraisement has collected customs duty of Rs 3,334 million in November against the Rs 3,223 million collected during the same period of Qinancial year 2016-17. The Collectorate of Appraisement collected extra amount of taxes in the same duration.

The Collectorate of Appraisement collected Rs 7.7 billion in Qirst four months of Qiscal years of 2017-18.

The Collectorate not only achieved growth of 9 percent as compared to the last year but also exceeded the target by 47 percent. It is perhaps due to the

strategies the department had adopted and brought about many changes in the Collectorate at every level.

Collector Jamil Nasir said, “The Collectorate had also met its revenue target in the previous months and this consistent increase in revenue was made possible only because of the initiatives taken by the department.”

Nasir added that collection also increases with a decrease in the cost of doing business at the dry ports of Lahore. “The cost was reduced through streamlining of clearance procedures and restructuring of various sections and branches of the collectorate,” he added.

Moving ahead, he observed that the jump in customs duty collection during November 2017 is a clear indication of the fact that the business-

friendly measures aimed at trade facilitation are delivering.

“I am confident that the Collectorate will not only achieve its target in the coming days but also reduce the cost of doing business further,” Nasir said and added the facilitation measures taken by his team will hopefully attract the leading manufacturers and importers for customs clearance from the dry ports of Lahore.

He also added that recovery of pending amount has increased in last three months. He said that customs appraisement will do every best effort to facilitate the importers and to collect their assigned target before the given time.

ly not on orate t c e l l rcent The co of 9 pe h t w o ar ed gr last ye e h achiev t o t rget pared the ta d as com e d e e so exc t but al percen 4 by 7

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

EDIToRIAL

creating bonds market bubble

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he government has entered the foreign capital market again this year by floating a five-year Sukuk and a 10-year Euro bond, raising $2.5 billion in one go –at least $1 billion through the Sukuk and $1.5 billion through the Eurobond. The bids received in New York for the two bonds stood at $8 billion though the yields were lower as compared to the last year’s foray when the government had raised $1billion through a five-year Sukuk at 410 basis points above the five-year US treasury bill, but that spread was 365 basis points this time around. The yield on the 10-year bond is also downed by 1.6 percent from the last 10-year paper. As the government has comfortably raised the money despite political chaos in the country, it is no doubt boasting of its success as the single largest auction of debt came to a close without delay.The money will definitely bolster the declining foreign exchange reserves, but this kind of venture is normal in an economy where acquiring the new debtshave always been taken as a priority.

Though the short term policies have long term repercussions, the bonds will put on hold the imminent devaluation of the Pakistani rupee. Economists suggest the country had little options to ensure sufficient non-debt inflows and had to explore the global debt markets as the domestic exports declined by 25 percent during the four-year tenure of the Pakistan Muslim LeagueNawaz government. The current exports stand at $20.4 billion which is only 6.7 percent of over $304 billion economy. The government opted for the international bonds and commercial loans to raise $13.7 billion in four and half years, including $6.64 billion it acquired through expensive foreign commercial loans and $7 billion through Sukuk and Eurobond notes. The is the state of the economy which beleaguered Finance Minister Ishaq Dar is not tired of praising day and night. The government has reportedly acquired $35 billion loans in total during its four and half year tenure and in the absence of check and balance, no one knows how the money was spent under which head.

However, the generations have to pay back the debts. The country has an uphill task of debt servicing in near future which is piling up with acquisition of funds from every available source.

Issue of financial management W LAHORE

DR AfTAB AfZAL

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hen a nation mortgages itself to a foreign lender,it will definitely have to be ready to bow to its dictations and that is what is happening in Pakistan’s case.

The International Monetary Fund has taken exception to the failure of Islamabad to release a report on the debt management, terming that a regular assessment of the debt structure is important to ascertain the fiscal condition of the country.

According to the media reports, the lending agency sees debt management as an important component to manage public fi-

nance.The last report on debt management risk was released in December 2016 and the next report was due in three months.

The report covers different aspects of the financial condition, including foreign currency debt, foreign exchange reserves, risks in debt refinancing, risks in interest rate and a host of other liabilities.

There is no doubt in the popular understanding that international financial institutions are the colonialists of the current era as they control finance and economy of the so-called developing nations. The strange aspect of the financial institutions is that they are ever ready to offer loans, apparently for develop-

ment projects which ultimately add burden to the poor economies. In other words, the poor nations are persuaded to mortgage their economic freedom to the lending agencies.

Pakistan remained debt free for four years from 1947 to 1951 and troubles started when it took the first loan from the World Bank. Unfortunately, since then the country has been accepting all kinds of loans which have now piled up to over $80 billion. If the current rate of accepting loans continues, every soul of the nation will be mortgaged in the coming years.

One fails to understand why the ruling elite and ofQicial policymakers Qind the external loans as an

easy way to show their performance to the general public. Instead of taking practical steps to improve industry and agriculture or opting for diversiQication of products or producing value added goods, they simply get loans to keep the foreign exchange reserves at certain levels and launch development projects in the country. The consequences of the blind acceptance of loans are dangerous as mistakes of today are the blunders of tomorrow. The coming generations will have to reap what is being sowed today. The government policymakers have to Qind a solution to economic woes in business and industrial management rather running from post to pillar to obtain new loans.

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Local investors top priority of BoI: New chairman ISLAMABAD: Newly-appointed chainman of Board of Investment (BOI) Naeem Y Zamindar has said that the top priority of his organization was to make Pakistan as prime destination for foreign and local investors by providing them level playing fields, besides making pro-investments policies.

“Pakistan offers tremendous opportunities for investors in making investments in various sectors of economy including Special Economic Zones (SEZs) under the game changer project of China Pakistan Economic Corridor (CPEC), textile, energy, agriculture, health, education and other sectors due to conducive business environment being offered in the country,” said the BOI chairman in an exclusive interview after assuming charge of his office here.

pcA uncovers tax evasion of Rs14.67m by m/s Alam Alam & Sons

Thursday December 7, 2017

National

court issues warrants against suspects involved in mega tax evasion case

KARACHI

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he Directorate of Customs Post Clearance Audit (PCA) has unearthed an evasion of duties and taxes of Rs14.67million by M/s Alam Alam & Sons Karachi, it is learnt. The official sources told our reporter that M/s Alam Alam & Sons Karachi imported a consignment of different kinds of vehicles gas-kits from the UAE under the PCT Heading 8809.3451 and got it cleared from the Port Qasim (PQ) Karachi vide GDs on June 2, 2017 by paying customs duty of six percent after claiming the benefit of the SRO 698/2007. However, the subject items are correctly classifiable under the Pakistan Custom Tariff 2307.2219 attracting customs duty of 12 percent and income tax of 10 percent thus, by way of mis-declaration of classification, M/s Alam Alam & Sons Karachi evaded/short-paid Rs14.67million. So the importer has violated the provisions

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KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi on Monday issued non-bail able warrants against absconding suspects, Zeeshan Akhtar, Zeeshan Yousaf, Kashif Hussain and Muhammad Azam Hussain for attempting to smuggle mobile phones (Q-Mobile) and other goods in the garb of LED lights.

During the hearing, investigation ofQicer submitted an interim charge sheet against M/s Digicom Trading (Private) Limited and informed the court that a team of Anti-Smuggling Organization raided Central Plaza in Sadder and found a container noKKFU-72555703 loaded on a trawler no TLT-374. A search was carried out in presence of two musheers which led to the recovery of a huge quantity of mobile phones stuffed in the container.

He also submitted that subsequently the said container was loaded on the vehicle which was brought at ASO/HQ, a thorough search was conducted in the presence of the said musheers, and re-

covered 27,200 Q-Mobile phones, 35,790 other assorted brands and models of mobile phones and 531 Amazon tablets which were smuggled by the suspect in the garb of LED lights. The tentative value of the smuggled goods is Rs 284,470,000 and evaded duty and taxes are in the tune of Rs103,

702, 340 approximately. The investigation officer further informed the court that no suspect has yet been arrest. However, the department is trying its best to arrest them, he said.

According to the prosecution was registered for violation of under section 2 (s) 16, 32 (1) & (2) 32A, 79,

80, 157 and 178 of the customs act, 1969 read with import policy order 2016 punishable under section 156 (1) (8) (89) (9) (9) (14) (14A) (43) (44) (45) & 156 (2) ibid read with section 3, 6, 7A, 33, 34 of the Sales Tax Act 1990, further read with section 148 of the Income Tax Ordinance 2001.

non-development development budget approved of Section 21 (6)) & (8A) of the Customs Act-1969, Section 18 read with Section 78 of the Sales Tax Act-1990 and Section 123 of Income Tax Ordinance 2001 punishable under clauses (24) and 32 of Section 76(2) of the Customs Act 1969, Section 127(9) of the Sales Tax Act1990 and Section 67 & 180 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001. Accordingly, an audit observation was issued to M/s Alam Alam & Sons Karachi for explaining and clarifying as to on what basis they have avoided/evaded the taxable duties and taxes.

KARACHI

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he Pakistan Agricultural Research Council (PARC) Board of Governors Wednesday approved budget of the council for the Qinancial year 2017-18.

The 41th BoG meeting was presided over by the Federal Minister for National Food Security and Research and Sikandar Hayat Khan Bosan. The budget approved by BoG included Rs2767.360 million for non-development with additional supplementary grant of Rs855.582m already under process with Administrative Ministry.

As many as Rs1261.919 million have been approved for development side for public sector projects.

In addition, the Board also approved Rs206.700 million for MoUs

and Rs214.709 million for Agriculture Linkage Program (ALP) of PARC. The BoG also approved adoption of revision of Basic Pay Scales2017 and Grant of Adhoc Relief Allowance-2017 at Rs. 10% as notiQied by the federal government with effect from July 1st, 2017 in-

cluding other allowances and facilities to the PARC employees. Speaking on the occasion, the federal minister expressed the hope that all new members would utilize their vision and experience in revitalizing agricultural research in the country. He said that PARC had played a

vital role towards improving the agriculture sector in various ways over the past He lauded the efforts of Prime of Pakistan Shahid Khaqan Abbasi, members of Senate and National Assembly Standing Committees on NFS&R to protect NARC from its displacement.

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Superintendent Siddiqullah to retire on March 11 Thursday December 7, 2017

National Abdul hameed takes charge as DD of hyderabad Internal Audit-IR

ISLAMABAD: Siddiqullah, a Pakistan Customs Service officer of BS-17, is going to stand retired from the government service on attaining the age of superannuation.

The officer, presently posted as Superintendent at Model Customs Collectorate, Peshawar, will stand retired from the government service on March 11, 2018.

Addl collector Engr Riyaz granted performance allowance

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ISLAMABAD

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bdul Hameed Abro, a BS-18 officer of Inland Revenue Service, has assumed charge as Deputy Director, Directorate of Internal Audit (IR), Hyderabad. The officer, in pursuance of Board’s Notification No.2983-IR-I/2017 dated 30-10-2017, relinquished the charge of the post of Deputy Commissioner-IR, Regional Tax Office-III, Karachi, with effect from November 10 and assumed the charge of the post of Deputy Director, Directorate of Internal Audit (IR), Hyderabad on the same date.

Meanwhile, Ziaullah Khan, a BS-19 officer of Inland Revenue Service, has been transferred and posted as Secretary (LitFST), Federal Board of Revenue (HQ), Islamabad with immediate effect and until further orders. If the officer, presently posted as Additional Commissioner-IR, Regional Tax Office II, Lahore, is drawing performance allowance, he will continue to draw the same on his new place of posting.

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Suspension of superintendent Shabbir withdrawn ederal Board of Revenue (FBR) has withdrawn the suspension order of a Customs official a day after issuance of the notification. The FBR, in a notification, said that its order issued on November 2017 regarding suspension of Ghulam Shabbir Phulpoto, Superintendent, Model Customs Collectorate, Faisalabad had been withdrawn ab-initio. A day earlier, the FBR said in exercise of powers conferred under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules 1973, the Competent Authority had placed Ghulam Shabbir Phulpoto, Superintendent, Model Customs Collectorate, Hyderabad (now posted in Model Customs Collectorate, Faisalabad) under suspension with immediate effect for a period of three months. –CB Report

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ngr. Riyaz Ahmed Memon, a Pakistan Customs Service ofQicer of BS-19, selected through the process of internal job posting (IJP), has been granted performance allowance. The ofQicer, presently posted as Additional Collector at Model Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi, was granted performance allowance with effect from November , 2017 i.e the date of approval of the competent authority. The grant of performance allowance will be governed through the terms and conditions laid down vide Circular No.6(96)S(BIC)/2013-14 dated 06.03.2015 to be read with para-10 of Finance Division’s O.M.No.1(3)/Imp/2015-360 dated

07.07.2015. The performance allowance will be discontinued in

case prescribed terms and conditions are not fulQilled within one

month from the date of issuance of this notiQication.

customs earns Rs417.33 million customs duty in november T

ISLAMABAD

TARIQ DERYA

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he Model Customs Collectorate of Islamabad earned Rs.417.33 million under head of Customs Duty during the month of November Financial Year 2017-18. Sources told Customs Today that all customs stations comprises Islamabad Dry port (IDP), Air Freight Unit (AFU), Customs Bond Section, Unaccompanied Baggage (UAB), Accompanies Baggage (AB), International Mail OfQice (IMO), and Rebate Refund generated the above mentioned amount. The sources told that that during the above said period the customs stations working under jurisdiction of MCC Islamabad showed good performance, he added that during said period the IDP earned Rs188.38 million under head of CD.

It was informed that during the month of November of Fiscal Year 2017-18 the AFU Islamabad earned Rs.243.85 million under head of CD while the UAB earned revenue in amount of Rs.0.62 mil-

lion under head of CD during above said period.

The sources notify that the AB sections of MCC Islamabad earned Rs.2.58 million of revenue under head of CD whereas the

IMO earned Rs.0.48 million in head of CD as for as the Rebate Refund section paid off 18.58 million to Exporters during initial 27 days of current month of September 2017-18.

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Mahwish Shah takes charge as Dy Director of Karachi PCA ISLAMABAD: Mahwish Shah, a Pakistan Customs Service officer of BS-18, has taken charge as Deputy Director, Directorate of Post Clearance Audit, Karachi.

The officer, in pursuance of Board’s Notification No. 2968-C-II/2017 dated 26.10.2017, relinquished the charge of the post of Deputy Collector, Model Customs Collectorate of Appraisement (West), Karachi with effect from October 31 and has assumed the charge of the post of Deputy Director, Directorate of Post Clearance Audit, Karachi on the same date.

nA body asks pTB to focus on research, development ISLAMABAD

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ational Assembly Standing Committee on Commerce and Textile has asked the Pakistan Tobacco Board (PTB) to explore possibilities of converting tobacco curing barns from traditional wood fired to solar powered in order to address the environmental degradation and reduce the pressure on depleting forests. The Committee directed the board to focus on its research and development (R&D) activities for developing other tobacco crop varieties which were suitable for cultivation in local climate. Chairman Pakistan Tobacco Board briefed the Committee about the performance of his office and supply of uncertified tobacco seed to the farmers. He said the main

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objective of establishment of the Board was to promote tobacco cultivation on scientific line through research and development for meeting domestic and foreign demand of quality tobacco. He also apprised the Committee about the regulatory functions of the Board and exports of raw tobacco and its finished products.

He apprised that the company had developed varieties of tobacco and would be distributed to the farmers which would not only enhance the tobacco yield but also be pest resistant. He said Board held awareness campaigns for the farmers to avoid cultivation of non-recommended tobacco varieties. The representative of NTC apprised the Committee that the Commission had addressed various issues of tariff protection and anomalies on the basis of its research studies conducted by involving all stakeholders in the matter.

National

pakistan customs has always been vanguard of movement to frustrate trafficking

Importer asked to file gDs through one customs KARACHI

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he Federal Board of Revenue (FBR) has notified that importers can get their consignments cleared through One Customs, which would ensure full implementation of the interim relief granted by the High Court in respect of Regulatory Duty (RD) dispute on import of certain items falling under SRO 1035(I)/2017. Sindh High Court in its interim decision directed that 50 percent of RD amount shall be deposited in cash whereas remaining 50 percent shall be deposited in the shape of securities with the Customs or the Nazir of the Court as per option of the relevant petitioners/importers. The court further directed that for the purposes of calculation of Sales Tax, Income Tax, etc., the whole of RD shall not be taken into account into any applicable calculation. In the WeBOC system there is no provision to implement either of the above two directions in the said order. Accordingly, multiple user IDs of the One-Customs system were issued to Appraising Officers, Principal Appraisers and ACs/DCs to implement the court’s orders in case of Goods Declaration (GDs) filed by relevant petitioners.

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hief Customs International Asad Rizvi said Pakistan Customs has always been on the forefront for the activities supporting the establishment of effective enforcement structures. It has been part of many international and regional initiatives that were taken in order to counter the movement of illicit goods therefore it has been termed a ‘Role Model’ in many such initiatives.

The honorable Prime Minister of Pakistan has designated the Pakistan Customs as a leading agency for the establishment of National Single Window System (The singlewindow system is a trade facilitation idea for implementation of a single dealing with government authorities for obtaining the relevant clearance and permit (s) for moving cargoes across the national or economic borders).

This was stated by Asad Rizvi, Chief Customs International, while talking with Customs Today in an exclusive interview.

He said the Pakistan Customs is committed to modernization of cus-

Thursday December 7, 2017

toms procedures and bylaws in accordance with the international best practices and guidelines of the international customs organizations.

It has always been a great proponent that conducive atmosphere be provided for facilitating the legitimate trade for securing the global supply chain. He added that, being a signatory to a number of international conventions and regional agreements, it clearly demonstrates Pakistan’s commitment in this respect.

He said it has been almost six years when Pakistan Customs embarked upon a plan to get engaged in modernization and automation of the customs procedures in line with the international best practices. This approach has led to the development and deployment of the Web Based One Customs System (WeBOC), a completely automated customs clearance system throughout the country which currently caters for 90 percent of the import and export consignments of the country.

cement industry’s pre-tax profits decline by 15%

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LAHORE

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he cement industry’s profitability has declined despite high sales, as its pre-tax profits went down by 15 percent while after-tax earnings reduced by 3 percent annually during first quarter of FY18 against double digit growth of 17 percent and 32 percent seen in 1QFY17 and 1QFY16, respectively.

According to experts, the highprofitability growth period of cement producers no longer holds as the price pressure kicks in owing to upcoming capacities and an

inability of manufacturers to pass on rising input costs.

During July-September, net retention prices of producers were down by an average of 4 percent or Rs13 to Rs312 per bag. Volatility in prices was mainly due to the price pressure in the north region after the commissioning of cement industry’s 1.3 million tons plan expansion in January.

During 1QFY18, sector sales grew by 11 percent YoY, mainly supported by 21 percent growth in local dispatches (total volume up 15 percent). Performance of local dispatches remained robust thanks to increase in demand

from construction and infrastructure projects ahead of general elections next year. Gross margins were recorded at 32 percent (down 9ppts YoY) in 1QFY18, the lowest in 21 quarters. Last lowest margin of 33 percent was seen in 1QFY13. Experts attribute this to higher input costs (coal prices averaged $87/ton, up 34 percent YoY while gas prices increased by around 25 percent YoY in 1QFY18) and lower local net retention prices.

This stresses that the high profitability growth period of cement producers no longer holds as price pressure kicks-in owing

to upcoming capacities and inability of manufacturers to pass on rising input costs. During 1QFY18, net retention prices of producers were down by avg 4 percent. While pretax profits were down 15 percent YoY in 1QFY18, net earnings of cement producers declined by only 3 percent. This was mainly due to 10ppts YoY lower effective tax rate which contained the decline in profitability. Huge tax benefits given to DGKC on account of plant expansion (tax benefit is also expected in the remaining quarters of FY18) led to lower effective tax rate.

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World Customs

Thursday December 7, 2017

Man caught smuggling cocaine worth $1.3m BRASILIA: “Inconsistencies” in a Brazilian man’s suitcase led to his arrest for attempting to smuggle in 3kg of cocaine, worth up to $1.3 million. The 38-year-old was caught at Auckland International Airport on Sunday, after arriving on a flight from Chile.

A baggage search revealed inconsistencies with his suitcase, which was found to have the cocaine hidden in its lining.

china slashes customs duties for frozen Atlantic salmon

‘Russia’s exports in three quarters of 2017 up to $255b’ MOSCOW

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hina will slash import duties by between 2% and 7% on a range of seafood imports, including frozen Atlantic salmon, shrimp, abalone, rock lobster and capelin. The new import duty rates will come into effect on Dec. 1, according to an announcement by China’s Ministry of Finance on Nov. The reduction is being implemented across a range of consumer goods, including milk powder, cosmetics and nappies, the ministry said. China’s state-owned news agency, described it as “news to make those passionate about foreign imports whoop and cheer”.

China last reduced import tariffs for seafood products, including coldwater shrimp, crab, pollock and six species of frozen tuna, at the beginning of this year.

new Zealand’s cocaine problem blows out here are fears New Zealand’s cocaine problem is getting worse, as seizures of the Class A drug continue to rise. Earlier in November at least 46kg of cocaine was seized from a hidden compartment on a ship from Chile to New Zealand. Customs group manager Jamie Bamford told Newshub there has been “quite a significant increase” in cocaine smuggling over the last three years. “The organised crime groups and cartels are basically trying to create a cocaine market within New Zealand. New Zealand’s a bit of an outlier in that we haven’t really got a large cocaine market historically,” he says. “They’re pushing larger quantities into New Zealand to be distributed by the gangs, to create an appetite and create a market here.”

While larger quantities primarily come out of South America. –CB Report

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Under the new tariff regime from Dec. 1, import duties for frozen Atlantic salmon (HS Code 03031300) will be reduced from 10% to 5%.

For frozen shrimp (HS Code 03061719), tariffs will be reduced from 5% to 2%. For live/fresh/chilled abalone (HS Code 03078190), tariffs will be reduced from 14% to 7%. Tariffs for live/fresh/chilled rock lobster and other sea crawQish (HS Code:

03063190) will be reduced from 10% to 5%. Lastly, tariffs will also be reduced for a host of Qish traded under HS Code 03035900 as detailed by the International Trade Center (including capelin, frozen anchovies, Indian mackerels, seerQishes, jacks, crevalles, silver pomfrets, PaciQic saury, scads, Kawakawa, bonitos, marlins, sailQishes, and spearQish), falling from 10% to 5%.

Turkey to break records in investments in 2017: Erdoğan

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resident Recep Tayyip Erdoğan said that he believes Turkey will break the all-time high records in investments by the end of 2017, and that no one will be surprised if the country’s economic growth reaches 7 percent this year. Addressing Ankara’s Chamber of Commerce (ATO) at an award ceremony held in the capital on Monday, Erdoğan noted that Turkey’s economy has increased by 5.7 percent between the years of 2003 and 2016

and stated that it ranks top among the developing countries. “A strong economy means a strong country,” he added. Erdoğan pointed out that Turkey globally ranks 13th in terms of national income per capita, which is now $11,000. Adding that Turkey’s objective is to rank among the 10 biggest economies, the president said that it will be enough to double the country’s current Qinancial situation to achieve this goal. –CB Report

he volume of Russian exports in the Qirst three quarters of this year grew by almost a quarter and reached $255 bln, Prime Minister Dmitry Medvedev said on Monday.

“Export growth has been achieved for many types of products – in three quarters of this year, Russian exports amounted to $255 bln, according to preliminary customs statistics data. Compared to the same period last year, it grew by almost $52 bln, or by a quarter. In general this is a good dynamic,” he said.

According to Medvedev, increase of world prices in part helped increase exports growth. “However, a significant, maybe leading factor is an increase of physical volumes of our supplies abroad,” Medvedev said. At the same time, he noted

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that growth of exports became possible due to the measures taken by the state to support it. Medvedev noted that small and medium-sized companies make up a significant share of exporters.

Meanwhile, Statistics from the China General Administration of Customs shows Russia held the crown as the country’s top crude oil supplier for the eighth month in a row in October, exporting more than one million barrels per day (4.649 million tons). Saudi Arabia came in a close second, with last month’s supplies up 16 percent from a year ago at 1.086 million barrels per day (bpd). China’s third biggest crude supplier was Angola, delivering 45.3 percent more crude oil versus a year earlier at 839,840 bpd. Supplies of oil from Iraq fell by 29 percent in annual terms, to 2.65 million tons. In September the Qigure was 3.43 million tons. Exports of Russian oil to China have more than doubled over the past six years, up by more than 550,000 barrels per day.

India, philippines customs cooperation he governments of India and the Philippines on November announced that they would be cooperating more closely on customs matters. An agreement to be signed by representatives of the two countries provides for co-operation and mutual assistance in customs matters, especially with regards to the prevention and investigation of customs offenses.

The Agreement is also expected to facilitate trade and ensure efQicient clearance of goods traded between the countries.

In a statement, the Indian authorities said: “The Agreement

would provide a legal framework for sharing of information and intelligence between the customs authorities of the two countries.

It would help in the proper application of customs laws, prevention, and investigation of customs offenses and the facilitation of legitimate trade.”“The draft agreement takes care of Indian customs’ concerns and requirements, particularly in the area of exchange of information on the correctness of the customs value declared and authenticity of certiQicates of origin of the goods traded between the two countries.”–CB Report

Business consortium to invest $1 billion in Africa

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CAPE TOWN

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Consortium of international business leaders was investing $1 billion in the South African and larger African economies, the lead investor ambassador Harold Doley jr announced yesterday. Doley made the

unexpected announcement at the Business Report Ignite breakfast yesterday morning. The event in Cape Town followed Finance Minister Malusi Gigaba’s Mid-Term Budget Policy Statement delivered in Parliament on Wednesday. The $1bn (about R14bn) investment will primarily be in technology, as a platform for diverse development, and education and agri-business.

Africa has the most arable land in the world and has more people under 35 than any other continent.

Addressing Gigaba, Doley said: “I am going to tell you something you will seldom hear: We want to come here and pay taxes; we want to make money so we can help you with your deQicit.”

The SA Revenue Service has previously said South Africa’s cumula-

tive deficit for 2017 is R17.08bn compared to R83.28bn deficit in 2016. The National Treasury has slashed the country’s growth outlook by nearly half to 0.7 percent from the 1.3 percent predicted in February. Doley said young Africans could unlock the door to economic prosperity if they were given the keys – capital, education and expertise.

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Four ships take berth at Port Qasim KARACHI: Shipping activity remained active at the Port where four ships. Majestic Sky. APL Howalia and Caspian Gas carrying Containers, Soya bean, LNG LPG were arranged berthing at Qasim international Container Terminal, Grain & Ferilizer Terminal, Engro Elengy Terminal and SSGC Terminal respectively on Sunday, 19th November-2017. While six more ships, E.R Felistowe, MSC Vittoria, APL Antwers, Sakizaya Miracle, New Century and Loggonda scheduled to load/offload Containers Cement, Coanola seeds and Diesel oil also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was maintained at the Port at fifty nine percent on Sunday where a total of tenn ships namely, G.H Chinook, APL Norway.

port klang lost some business to Singapore, says ministry he lower revenue recorded by Port Klang last year is due to some international shipping companies shifting operations to Singapore, says Deputy Transport Minister Datuk Abdul Aziz Kaprawi. He said the port authority’s annual report recorded that it earned RM302.8mil in 2015 but last year, revenue fell to RM271.2mil. He said the transfer of operations was due to the merging of some of these international shipping companies and the calibration of routes. “Among the mergers is the taking over of United Shipping Company by Hapag-Llyod, which resulted in one million twenty-foot equivalent (TEUs) containers that operated in Port Klang moving to Singapore. He was replying to Sim Tong Him (Ind-Kota Melaka) who asked about the rev-

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Ports & Shipping

ADnoc & Abu Dhabi ports to establish marine Simulation centre

port of Baltimore handling more cargo than any previous year he Helen Delich Bentley Port of Baltimore has handled 8,019,919 tons of general cargo at its public marine terminals through the first nine months of 2017. The number crushes the previous nine-month calendar year mark from January through September in 2016. The port’s pace was led by containers which has had a 11 percent jump over its record year in 2016. During the third quarter of 2017, the Port of Baltimore had a 15 percent jump in general cargo tons from the third quarter in 2016. “The Port is a leading economic engine for the City of Baltimore and our state, and its continued success is further proof that Maryland is open for business. Our administration remains committed to ensuring that the Port remains one of the top ports in the nation,” said Governor Larry Hogan. The Port of Baltimore was the fourth fastest-growing port in North America in 2016, with a 9.8 percent increase in the amount of cargo handled from the previous year. –CB Report

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ABU DHABI

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he Abu Dhabi National Oil Company, ADNOC, and Abu Dhabi Ports, are to establish a joint Marine Simulator Centre in Musaffah, Abu Dhabi, to provide a range of maritime training for the UAE’s growing marine workforce.

Under the long-term partnership, the Marine Simulation Centre will provide training for ADNOC employees and serve the wider maritime community when it begins operations in late 2018.

Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said, “This partnership sheds light on ADNOC and Abu Dhabi Ports’ continuous efforts to support the creation of a sustainable and knowledge-based economy. Through this state-of-the-art training centre, we are working together to further develop national skills and expertise in the marine sector in line with the world’s best practices. We look for-

Thursday December 7, 2017

ward to showcasing the centre’s contribution to building the national economy.” The centre will offer a full suite of simulation facilities related to navigational, engineering and cargo operations in a state-of-theart complex. As well as providing a variety of maritime training programmes, the centre will also help investigate maritime accidents, explore different maritime scenarios, and carry out world-class research.

When it becomes operational, the

centre will have four Full Mission Navigation Bridge Simulators, including two with 360-degree Qields of vision, a Liquid Cargo Handling Simulator and an Engine Room Simulator. It will be able to train 28 students at a time. Rashed Saud Al Shamsi, Director of ADNOC Logistics, said, “By working with Abu Dhabi Ports to establish the Marine Simulation Centre, we are investing in the up-skilling of our people and providing them.

port of Toledo posts impressive numbers enue recorded by Port Klang. In another development, the Ministry of International Trade and Industry said Malaysia received a total RM267.7bil in investments from 10 countries last year. In a written reply to another question from Sim, the ministry denied claims that foreign investors are pulling out of the country. “There is no denying that there are companies which have ceased operations or moved to other countries due to their labour-intensive operations. “However, claims that many investors have ceased operations or moved elsewhere is false. In fact, between January and October this year, only eight companies with majority foreign investments have ceased operations,” said the ministry. –CB Report

TOLEDO

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he Port of Toledo is one of the largest on the Great Lakes, and business is booming this year.

Grain, aluminum, iron ore and petroleum coke are just some of the products moving in and out of Toledo. A study shows that about 7,000 jobs are tied to the Port of Toledo, and it has a nearly one billion dollar economic impact on the region. More iron ore moves through the port than any other commodity, and this year’s iron ore numbers are up considerably from last year.

Joe Cappel is the Vice President of Business Development at The Toledo-Lucas County Port Authority, “When you see a lot of ore boats in Toledo, that’s a good sign for the domestic production of steel.”

There have been a lot of ore boats

in Toledo this year. Last year freighters hauled about 1 million tons of iron ore to Toledo. This year that number has already hit about 3 million tons, and the season isn’t over yet. Paul Toth is the President and CEO of the port, and he says it’s not just iron ore shipments that are up,”We’ve seen an increase in virtually everything this year.” Cappel says the numbers are encouraging for the entire region,”In normal years when something is way up, other things are down. This year everything seems to be pretty far up. We have worked hard to strike a balance at the port through the years Our imports are balanced with our exports. Our domestic shipments are balanced with our shipments to and from Canada. It is great to be able to handle so many commodities and ship them to so many places all over the globe.”

While the port’s entire portfolio

of commodities is doing well, the iron ore numbers are about to get even bigger. Cleveland Cliffs is building a new facility along the banks of the Maumee River. Crews were doing prep work on the site today, and construction is expected to start next spring. Toth says it’s a $700 million investment that means about 1,200 construction jobs and 120 permanent workers, “That will bring an additional 100 vessels every year to the Ironville dock. Just four years ago that dock lay vacant, it was an old reQinery site.”

Cappel says those vessels will be carrying in a signiQicant amount of iron ore,”In 2020 when Cleveland Cliffs is fully operational, there will be an additional two million tons of iron ore added to what we are handling today. When you count all of the cargo coming into the port, that totals between 8-12 million tons in a season.The additional two million

tons of iron ore will certainly be a sizable addition to that overall number. ” In addition to the Cleveland Cliffs construction, Toth says there will also be other work done at the port next year, “Our port was built in 1956 and 1957, so it’s time to build some new facilities and renovate some of the existing sites. We are committed to investing in our future.”

The goal is of course to continue expanding the port of Toledo. Although there are no speciQic details about any new projects at this point, Cappel says there is plenty of room for new growth, “A lot of ports are restrained by other waterfront development.

We have a large industrial area and a lot of room to grow.” That’s good news for the entire region. As we mentioned, an economic impact study about six years ago revealed that thousands of jobs are tied to the port with an annual economic impact of about one billion.

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IRSA releases 73,900 cusecs water ISLAMABAD: The Indus River System Authority (IRSA) released 73,900 cusecs water from various rim stations with inflow of 39,400 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1446.88 feet, which was 66.88 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 23,100 cusecs and outflow as 32,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1130.05 feet, which was 90.05 feet higher than its dead level of 1,040 feet whereas the inflow and outflow of water was recorded as 4,400 cusecs and 30,000 cusecs respectively.

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Business

pm for exploiting potential of dairy industry ISLAMABAD

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rime Minister Shahid Khaqan Abbasi directed that all necessary measures be adopted for exploiting the full potential of Pakistan’s dairy industry and directed formation of a committee to study proposal for establishing Milk Board in the country.

Talking to a delegation of Pakistan Dairy Association here at the Prime Minister OfQice that focused on issues faced by the sector, the Prime Minister asked all stakeholders to consider ways for formation of the Milk Board under the Minister for Food Security.

Sindh fixes sugarcane price at Rs182 40 kg KARACHI

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The Prime Minister was briefed about potential and the contribution of the sector towards national economy and meeting the nutritional requirements of the country.

future contracts worth Rs1.3 trn traded on pmEX in 2016-17

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he Sindh government has fixed Sugar Cane price at Rs180 per 40 kilogram for crushing session 2017-18. According to a notification the price is fixed by the Sindh Agriculture, Supply and Prices Department with the approval of competent authority. The sugar factories in the province are directed to pay quality premium to the cane growers at the end of the crushing season 2017-18 at the rate of fifty paisa per 40 kilogram, cane for each 0.1 percent.

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The delegation suggested various measures including putting in place uniform food standards across the country, minimum pasteurization law and tax related incentives for

further growth of the sector.

The Prime Minister assured the delegation that their suggestions would be duly considered by the Government and all possible facilitation would be extended to them for ensuring growth and capitalization of potential of the sector. Minister for National Food Security Sikandar Hayat Bosan was present during the meeting with the delegation that comprised Syed Yawar Ali, Chairman PDA and Nestle Pakistan Ltd, Mr. Aamir Khawas, Chief Operating OfQicer Fauji Foods, Sulaiman Sadiq Monoo, CEO Dairy Land Pvt. Ltd., Anjum Muhammad Saleem, CEO Shakarganj Food Products Pvt. Ltd., Jorge Montero, MD Tetra Pak Pakistan Ltd., Ali Ahmed Khan, CEO Engro Foods Ltd, Muhammad Memosh Khawja, CEO Haleeb Foods Ltd., and others.

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ISLAMABAD

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uring the year, 3.38 million commodity futures contracts with a value of Rs1.3 trillion were traded on Pakistan Mercantile Exchange (PMEX) as compared to 3.69 million contracts with a value of Rs1.29 trillion traded in FY201516, marking a decline of 8%.

According to the annual report 2017 issued by the Security Exchange Commission of Pakistan (SECP), this decline can primarily be

attributed to the less number of liquid contracts available for trade on PMEX as well as imposition of capital gains tax on commodity trades. On the other hand, marginal increase in the value of commodities traded was owing to surge in price of gold during the year. Actively traded commodities in terms of value were gold contributing 41% to the overall traded value at the exchange followed by currencies (36%) and crude oil (18%). On the agriculture side, trading volume in red chili contracts surged substantially with 2,200 contracts of red chilli valued at over Rs35

million traded through the PMEX as opposed to 605 contracts traded in the FY2015-16. This increase in trading of red chilli was because of awareness campaigns run by the SECP in Kunri, the hub of red chilli production in Pakistan. Meanwhile the report stated that Pursuant to promulgation of the Futures Market Act, 2016, the SECP framed the Futures Exchanges (Licensing & Operations) Regulations, 2017. Salient features of the regulations include application of Qit and proper criteria on the majority shareholders, directors and senior management ofQicers.

pak, ADB to promote regional connectivity, trade ISLAMABAD

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akistan and Asian Development Bank (ADB) agreed to further enhance their cooperation for promoting regional connectivity and trade in the Asian Continent. The government of Pakistan and Asian Development Bank formally launched the Central Asia Regional Economic Cooperation (CAREC) Strategy 2030 here Monday. The new strategy was recently approved by the 16th Central Asia Regional Economic Cooperation Ministerial Conference held on October 27 this year in Dushanbe, Tajikistan, said a press release issued here. The CAREC is an eleven-member country regional platform that aims to connect people, policies and projects for shared and sustainable development. Speaking on the occasion, Arif Ahmed Khan, Secretary, Economic Affairs Division appreciated the Asian Development Bank for extending cooperation for preparation of well formulated strategy document. He assured Pakistan’s support to mobilize all possible resources for improving and developing regional connectivity as outlined in the new strategy. He said that the history of regional connectivity in the Central Asia region and the SubContinent since centuries.

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pTA terms 12.5% withholding tax on mobile recharge high ISLAMABAD

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he withholding tax of 12.5pc on every mobile recharge is high since majority of the subscribers fall below the threshold of being taxpayers and cannot get the paid amount adjusted in their annual tax returns, said the Pakistan Telecommunication Authority (PTA) in its annual report.

While the federal excise duty (FED) has been decreased to 17pc from 18.5pc in the budget, the tax rates of the provincial revenue departments are still quite high and should be reduced following the example of the federal budget, it added. “The harmonisation of federal and provincial tax laws is important to resolve the sales tax collection issues. “High customs duty and other taxes on the import of mobile handsets and telecom equip-

ment also impede the mobile phone service penetration,” the regulatory body said in the 50-page report.

Under the heading of ‘Industry issues and way forward’, the PTA said rationalisation of taxes in the telecom sector was a major challenge being faced by the industry for the last a few years.

However, after coordinated efforts by the PTA and the telecom industry, the withholding tax has been brought down from 14pc to 12.5pc

in the federal budget 2017-18. But even the 12.5pc withholding tax is high, the report added.

The PTA claimed to recognise the industry issues and plan to resolve them in the next two years to bring significant innovations in the telecom sector. The telecom contribution to the national exchequer in 2016-17 has been estimated to be Rs161.43 billion compared to Rs126.26 billion in 2014-15.

The report said the number of

cellular mobile subscribers in 2016-17 increased to 139.76 million compared to 114.66 million in 2014-15. Similarly, the number of 3G and 4G users increased from 13.5 million in 2014-15 to 42.1 million in 2016-17. Former PTA chairman Dr Ismail Shah said at present more than 87pc of the population falls under the cellular mobile signal, out of which 70pc were covered by 3G services and 30pc can access 4G services.

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UAE Clarifies VAT rules for real estate DUBAI: The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) November released regulations clarifying the value-added tax treatment of residential and commercial real estate purchases and sales.

VAT is being introduced in the UAE from January 1, 2018. The FTA explained that the supply of commercial real estate (sale or lease) will be subject to the five percent tax rate, while residential units will generally be exempt, except for the first supply of a new residential building within the first three years of its construction, which will be zero-rated. The FTA defined the supply of real estate as “activities that include, among other things, the sale, lease, or giving of the right to any real estate.” Adding: “A residential building is a building or part thereof that is intended and designed for occupation by individuals, and mainly includes buildings that can be occupied by any person as [a] main place of residence.

Joao paulo Sabido costa Ambassador of portugal visits RccI

Thursday December 7, 2017

Chambers

pakistan should focus on Somalia to penetrate African markets

RAWALPINDI

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r Joao Paulo Marques Sabido Costa, chargé d’affaires, Embassy of Portugal , paid a visit to the Rawalpindi Chamber of Commerce and Industry (RCCI) here on Wednesday. Addressing traders and business community he said that his country wanted to increase trade ties with Pakistan as both countries have good potential to improve bilateral trade in different areas. He stressed that Pakistan and Portugal should exchange trade delegations and promote business to business (B2B) linkages to know each other and explore new areas of mutual cooperation. Dr Joao Paulo Marques Sabido Costa said that

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being a hi-tech country, Portugal was ready to assist and provide technology and machinery to Pakistan in many sectors including agriculture, textile, marble, water resources, building and constructions. The high potential sectors include; biotechnologies, shared service centers (call centers and associated infrastructures), high value added chemistry (polymers) and the electric and energy and telecommunications, he further added. He said Portugal was close to European Union (EU) and Pakistan should develop close cooperation with it to get better market access to European and African regions. He said Pakistani food products, fruit pulp and Agri products have a good reputation and value addition can be made here. Pakistan should focus on promoting more products to Portuguese market under Generalized System of Preferences (GSP) Plus scheme. –CB Report

ISLAMABAD

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E. Ms. Khadija Mohamed Almakhzoumi, Ambassador of Somalia said that Pakistan should focus on Somalia to penetrate huge market of Africa. She said that Pakistan can capture better market share in Somalia by exporting quality products at affordable prices. She said both countries should focus on speciQic areas to improve bilateral trade. She said this while interacting with business community at Islamabad Chamber of Commerce and Industry.

The Somali Ambassador said that things were improving in Somalia and government has passed a new investment-friendly law to attract more foreign investment. She said Pakistani investors should explore Somalia for joint ventures and investment as Somalia was looking for foreign investment in many sectors of its economy including in energy, infrastructure development, environment, construction, healthcare and others. She stressed that Pakistan should cooperate with Somalia

in skills development to improve its productivity.It was discussed that Somalia Embassy would display samples of its products at ICCI. Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that Pakistan and Somalia enjoyed good relations, but bilateral trade between the two countries was quite nominal which needed se-

rious efforts from both sides to improve it. He said both countries were doing trade in limited items they should focus on trade diversiQication to achieve better results.

He said Pakistan and Somalia have good potential to cooperate in many areas including agriculture, cement, pharmaceuticals, fish farming, energy, real estate, construction, textiles, health, edu-

‘E-commerce is future mode of business’ FAISALABAD

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-commerce is the future mode of business, which will also provide an opportunity to the Small and Medium Enterprises (SME) sector to directly supply their products to the end-consumers in any part of the world, said Shabbir Hussain Chawla, president of Faisalabad Chamber of Commerce & Industry (FCCI). He said that there was no doubt that Alibaba is the pioneer in sale and purchase of products online. He said that the mega Qirm started its journey as a small enterprise that made tremendous progress and currently it is handling business of billions of dollars in 190 countries across the globe.

He suggested that Alibaba.com should establish their warehouse in

different countries to ensure speedy supply to the customers.

Jason Jia and Patrik Wang of Alibaba.com briefed the meeting about the operational activities of Alibaba. Thye said that in the Qiscal year ending March 31, 2017, the Chinese e-commerce corporation recorded revenue of 119.8 billion yuan in Chinese online sales.

“This translates to approximately US$17.4 billion,” he said and added that as of 2015, China is catching up with the United States in the battle for e-commerce supremacy.

The meeting was also attended

by Senior Vice President Sheikh Farooq Yousaf, Vice President Usman Rauf, Mian Jvaid Iqbal, Rizwan Ashraf and Sohail Bin Rashid.

Later, President Shabbir Hussain Chawla inaugurated an awareness session, organised by Balibaba, a local company dealing

in the sale and purchase of various products online.

A documentary on Balibaba was also presented.

Meanwhile, FCCI-E-Police Station will be re-activated very soon, while Police “Khidmat Center” will be established in the building of 15 to provide at least 13 different police related facilities to the masses, said SSP Operation Rana Muhammad Masoom. Addressing the FCCI members here today, he told that Police Khidmat Center will offer various facilities including learner driving permit, finger printing data of criminals, record of stolen vehicles, issuance of character certificates and provision of copies of FIRs etc. He said that this center is expected to become operational during next week and office bearers of FCCI would also be invited to attend it.

cation, medical science, tourism, transport, ICT & telecom and others. He urged that the best way to explore new avenues of mutual cooperation was to facilitate the direct contacts between the private sectors of both countries. He said ICCI was ready to sign MoU with capital chamber of Somalia and Embassy should cooperate in such efforts.

usman Rauf elected vice-president of fccI sman Rauf of M/s Usman Traders was officially declared elected vice president of Faisalabad Chamber of Commerce & Industry (FCCI), during an extraordinary general body meeting of the chamber. Shahid Ahmad Sheikh, senior member FCCI Election Commission, said that immediately after the general elections, Rana Fiaz Ahmad resigned from the office of vice-president due to his personal engagements. It necessitated the new election to the office under the FCCI Memorandum of Articles. Hence, a new Election Commission was constituted to complete the legal requirements. Chaudhry Muhammad Boota, another member of the Election Commission. –CB Report

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Mianwali ASO impounds Hino Dumper truck near Jahaz Chowk MIANWALI: The Customs Collectorate Anti Smuggling Organization (ASO) has impounded a non duty paid Hino Dumper truck. The market value of the seized vehicle is Rs56,50,560 involving customs duty and taxes of Rs29,50,560.

Sources told Customs Today, that the ASO team comprising Superintendents Chaudhary Muhammad Sardar, Azhar Hussain Jafri, Muhammad Omar Bhatti, (inspector), and Saifullah, Ghulam Mohyudin, Muhammad Yousaf, Muhammad Abdullah, Faiz Ahmed Sher Ali during their routine checking intercepted a Hino Dumper truck bearing registration no: LES-16-5055 Lahore.

Thursday, December 7, 2017

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peshawar customs collects Rs2104.43 million during november PESHAWAR IRfAn BAhADuR

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he Model Customs Collectorate collected Rs2104.43 million against the assigned target of Rs 1784.04 million assigned during the month of November.

Gul Rehman during a talk with Customs Today said that in the current month the MCC has showed outstanding performance and posted a growth of 17.96 percent in collection of all duties.

He told that that during the month of October MCC has collected Rs2255.75 million and Rs1638.40 million was collected in November of previous FY 2016-17.

The MCC Peshawar collected Rs910.44 million under the head of customs duty as against target of Rs689.87 million thus exceeded the target by 31.97 percent.

All tax collection for the month of November FY 2017-18 has reached to Rs2104.43 million against the target of Rs.1784.04 and Rs 1638.40 million collected in November of previous FY 2016-17.

The MCC Peshawar had showed a collection of Rs2255.75 million during October of previous Fiscal Year

2017-18. According to details MCC generated Rs 681.18 million under the head of sales tax during November against target of Rs646.85 million with 5.31 percent increase in the revenue collection in wage of sales tax during current month of November. The Collectorate was able

to collect Rs 795.07 million ST in October of current FY 2017-18. The ST collected during November of previous FY 2016-17 was Rs 638.28 millions. In the same manner the collector customs told that Rs496.87 million had been collected as AIT /WHT during current month of No-

vember against Rs492.20 million AIT collected in October of current FY and Rs401.81 million collected in November of previous FY 201617. In this November the Collectorate collected extra amount with 15.57 percent growth in revenue collection. The customs Collectorte col-

lected Rs 15.94 million under the head of federal excise duty (FED) in Novemberof current FY 2017-18 against target of Rs1784.04 million.

The Collectorate earned Rs20.71 million in October during current FY 2017-18 and Rs 15.84 million in November of previous FY 2016-17.

Agriculture borrowing enhanced as borrowers reached to 3.187b ISLAMABAD

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he Sub-Committee of the Senate Standing Committee on National Food Security and Research here was informed that agriculture sector borrowings have registered signiQicant increase during current Qiscal year as over 51 institutions were providing agriculture lending facilities in the country.

The committee met here with Senator Muhammad Mohsin Khan Leghari was briefed about the current status of agriculture credit availability and issues and challenges faced by the sector.

Senior ofQicials of State Bank of Pakistan (SBP) informed the meeting that government had set agricredit disbursement targets at Rs. 1,001 billion for Qinancial year 2017-18, adding that am action plane was devised to meet the set target for current Qiscal year.

He said that an amount of Rs 705 billion was disbursed during last Qinancial year as against the

set targets of Rs. 700 billion, hence showing an increase of 5 percent.

It was informed that about 75 percent of the total disbursement targets set for current financial year was achieved so far, where as the the total numbers of agriculture borrowers were increased to 3.187 billion during the fiscal year 2017-18. He said that nonfarm borrowing had also registered positive growth as compared with the farm sector borrowing. The SBP official told the committee that the banking sector of the country was also directed to open 20 percent bank

branches in rural ares by 2020 to enhance easy access to credit facilities for the rural farming communities. Meanwhile, the representative of Zarai Taraqiatie Bank Limited informed the committee that the bank was providing two types of climate remedy to safeguard the farmers of the country, adding that it was charging about 14.8 percent on development loans and 12.5 percent on nondevelopment loans.

The National Bank of Pakistan told the committee that 107 billion was disbursed among 300,000 borrowers as about 1000

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bank branches were dedicated for agriculture lending to facilitate the farmers of the country.

The Chairman of the Committee Senator Mohsin Khan Leghari directed the banks to ensure easy excess to credit facility for rural farmers in order to safe them from the exploitation of middle men and promote the agri-sector of the country.

Senators, Hamza and Muhammad Zafarullah Khan Dhandla attended the meeting, where as senior ofQicials of SBP, ZTBL, Habib Bank Limited and National Bank of Pakistan attended the meeting.