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pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 259

Karachi, Wed December 9, 2015

ISLAMABAD

M FAIZAN

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BR Chairman Nisar Muhammad Khan has taken back the charge of IT Department from Raana Ahmad. Previously, she was performing her responsibilities as member of Information Technology in FBR. The charge of IT department has been temporarily assigned to Waqar Ahmad. Ahmad is working as member administration in FBR. According to sources, this

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decision is taken internally and no ofSicial handout is issued in this regard till yet.

Sources said that chairman FBR took this decision after receiving complaints regarding IRIS (Integrated Risk Information System) software and other computer related issues. Sources further told that other board members of FBR were also complaining about the same issues from recent past, so FBR high authorities decided in principal to take back the charge of IT department from Raana Ahmad. Decision of her new assignment is still awaited till Siling of this report.

FBR considering to exempt salary accounts from WHT

Multan Customs seizes vehicles, goods worth Rs27.06m in November

Banks directed to establish special counters for pensioners

Gwadar Customs seizes smuggled cosmatics during crackdown

ICCI appeals govt to finalize effective national water policy

FBR is seriously considering a proposal to exempt salary accounts | See pAge 02 |

Directorate of Customs Intelligence Multan Range OďŹƒce seized miscellaneous goods | See pAge 03 |

The Central Bank has directed all the banks to facilitate the pensioners | See pAge 04 |

The Customs Collectorate Gawadar impounded a huge quantity of smuggled | See pAge 12 |

ICCI has called upon the govt to finalize of a comprehensive | See pAge 09 |

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Customs Appellate Tribunal to hear nine cases Wednesday, December 9, 2015

National

ISLAMABAD: The Customs Appellate Tribunal will hold hearing of only nine cases on the second day of tribunal proceedings at the federal capital, Islamabad.

Customs Appellate Tribunal’s special division bench comprising the tribunal Chairman, Ghulam Murtaza Bhatti and Member Technical, Muhammad Nazis Khan would hold the hearing.

The bench had also sought respondents’ comments in couple of cases filed by deputy commissioner customs, Islamabad, and in another case filed by Sun Diplomatic Bonded Warehouse.

FBr considering to exempt salary accounts from wht

Faisalabad customs Adjudication issues show cause notice to M/s rana textile Mills FAISALABAD

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aisalabad Customs Adjudication issued a show cause notice to M/s. Rana Textile Mills Ltd due to tax evasion.

Sources told Customs Today, that Customs Adjudication collectorate Raja Tahir Majeed issued show cause notice. Sources further said that the above said company imported 296000 kilograms of dyes under PCT heading 3204.1510 and 3204.1910. The assessed value of imported items were Rs 6700848 which involves duty and taxes of Rs 1460785. During the import process of above said dyes the company gained undue benefits of SRO 450 (1) 2001. It is confirmed that the M/s Rana Textile Mills was not entitled to import the dyes without duty and taxes and store in bonded ware house.

The licence allowed the import of 296000 kilograms of dyes without duty and taxes.

Meanwhile, The Customs Appraisement Faisalabad has collected Rs 2305.42 million up to November 30, 2015. These figures shows that 70 percent average achieved in the revenue collection against the set target of Rs 3,281.14 million.

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ISLAMABAD

M FAIZAN

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he Federal Board of Revenue (FBR) is seriously considering a proposal to exempt salary accounts from withholding tax. This concession

will be granted to those with salary accounts in banks. Sources of in FBR told Customs Today that a number of complaints were being received by FBR that banks are deducting income tax from their salaries despite their names are already in the list of active taxpayers.

Banks were demanding to all these persons to bring “exemption certiSicate” from FBR. Now a proposal is forwarded to FBR, saying that

WHT is levied on banking transactions so salaried persons cannot afford such a tax. These employees forwarded their appeals to FBR Chairman Nisar Mohammad Khan to announce exemption of WHT on their salary accounts.

Sources said that FBR authorities are seriously considering such a proposal to grant exemption of withholding tax on salary accounts.

An ofSicial announcement is ex-

pected in near future in this regard.

Meanwhile, Federal Board of Revenue (FBR) Member Operations Inland Revenue Dr Mohammad Irshad Khan is due in Faisalabad today.

During his visit, he will pay a visit to Regional Tax OfSice and hold talks with business representatives of Faisalabad.

His visit is in continuation of FBR’s ongoing campaign to enhance tax revenue.

turtles smuggling case: Shc postpones chinese citizen’s plea KARACHI

MuhAMMAD YouSAF www.customsbulletin.com

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he Sindh High Court (SHC) on Monday put off an application of a Chinese citizen seeking return of Rs 50,000 surety he had furnished to seek protective bail in a case pertaining to the smuggling of body part of freshwater tur-

tles to Hong Kong.

A single bench of the SHC adjourned the application to a date to be Sixed later by the court ofSice. The case could not be taken up because of the suspension of legal work over the demise of former SHC Chief Justice. According to the details, the customs authorities had foiled a bid to smuggle body parts of freshwater turtles, protected species, to Hong Kong. M/s Hongda Trading Company tried to smuggle 4,342 dried turtles weighing about 1.90 tonnes,

under the garb of dried Sish maw and dried Sish skin. Total value of the turtle parts was estimated at Rs 616.564 million. The Model Customs Collectorate, Exports had registered the FIR against the Sirm’s proprietor Ali Ahmed Soomro, and Muhammad Rizwan and partner Chinese citizen, Yingquan Pang.

The SHC had granted protective bail to the Chinese citizen against surety of Rs 50000 when he approached it against non-bailable warrants issued by the customs

court for his arrest.

In the application, he requested the court to return the surety since it was no more required as he had surrendered before the trial court and pleaded guilty to his role in the offence.

Meanwhile, The Sindh High Court (SHC) has directed the customs authorities to release the consignment of M/s Anum Traders’ within seven days after the company pays duty, taxes, redemption amount and the penalty imposed on it for mis-dec-

laration. A division bench of the SHC was hearing the petition Siled by Syed Khurram Ahmed, the proprietor of M/s Anum Traders, who moved the court seeking release of the consignment, which according to the customs counsel, was detained for duty and taxes evasion of Rs 1.6 million. The petitioner submitted that he had imported miscellaneous goods from China. When the consignment arrived at the port, he through his clearing agent Siled general declaration, he added.

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Adjudication DC Kaukab issues notice to alleged smuggler ISLAMABAD: Collectorate of Customs Adjudication Deputy Collector Kaukab Farooq has issued a show cause notice to Zulfiqar Ahmed in a smuggling case.

According to the details, Deputy Collector Kaukab has issued notice to accused person in seizure case of cloth and electronic items.

The adjudication authority directed the accused, Zulfiqar to attend the hearing on December 21, 2015 along with evidence regarding the lawful clearance of the items.

The authority also said that “if the accused fails to provide the evidence, the case will be decided on the basis of available evidence.”

customs court to hear of Dp world containers case

Wednesday December 9, 2015

National

Multan customs seizes vehicles, goods worth rs 27.06m in Nov

KARACHI

wAQAr AhMeD ANSArI www.customsbulletin.com

he Special Customs Court will hear DP World containers case today. During the hearing, the main accused Naeem Qureshi is expected to appear in the court. Naeem Qureshi is declared absconder in many cases which were pending against him in Lahore, Rawalpindi, Islamabad and Peshawar. He is on bail which is granted by Customs Court Karachi. Curtoms Court also declared that above said accused will not be arrested by any other court if he is already granted bail. Sources said that other accused Abdul Shakoor and Faisal are already declared free in 32 cases but the main accused Naeem Qureshi is still on bail.

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FBr to conduct audit of welfare organisations LAHORE

MuhAMMAD NAwAZ www.customsbulletin.com

he Federal Board of Revenue (FBR) has decided to take action against welfare organizations which are working as non-profitable organizations.

Sources said that some welfare organizations are earning in millions and enjoy tax exemptions.

Now the FBR has decided to scrutinized the bank accounts of these organizations, if any irregularities will found in accounts statements then disciplinary action will be taken against those welare organisations and FBR will recover payable amount.

Sources told Customs Today that FBR assigned the responsibilty to senior officers of Regional Tax Opffice-I (RTO-I) for the audit of banks accounts and tax returns of non profit organization.

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MULTAN

IMrAN ALI

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irectorate of Customs Intelligence and Investigation Multan Range OfSice seized miscellaneous goods and vehicles worth Rs.27.06 million in November. Customs Intelligence and Investigation authorities conucted various anti-smuggling operations within the jurisdiction of Multan which comprised of Sadiqabad, Dera Ghazi Khan and Multan. Customs teams seized several articles and vehicles worth Rs 27.06 million during the month. Customs Intelligence seized different smuggled goods, including imported LEDs, DVD players, black tea, welding rods, tyres, along with automobiles and other miscellaneous goods from their jurisdiction during different raids against smuggled goods in the month of November. Meanwhile, Customs Intelligence made 13 seizure cases of goods and vehicles in the course of November. Customs seized nine vehicles of various brands during November.

During the extensive anti-smuggling campaigns, customs ofSicials seized nine smuggled vehicles of various brands including Toyota Parado TX, Honda Civic, Toyota Surf, Toyota Corolla X, Suzuki Vitara jeep, Toyota Hiace wagon ,Mitsubishi Inter Cooler ,Toyota Land Cruiser and Toyota Hilux Surf. The net value of the nine seized vehicle are almost Rs

16.8 million and duty taxes involved in the seizure were almost Rs 13.3 million. About Rs 400,000, Rs.18 16 million, Rs 8.5 million of goods seized by Customs Intelligence and Investigation teams in various raids from Multan, Sadiqabad and Dera Ghazi Khan Region respectively.

Customs Intelligence and Investigation are enduring their antismuggling operations against smuggled goods to curb the menace of smuggling in the region.

According to Zubair tufail vice president FpccI, once the dispute between the FBr and traders’ community is resolved, the exiting number of income tax returns filers will increase to double figures.

pak, India trade slows down through LFu wagah LAHORE

M IMrAN MehAr

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rade between two neighboring countries, Pakistan and India, has slowed down due to decrease in import and export of vegetables and fruits through Wagah trade route.

Sources of Pakistan Customs Wa-

haga Land Freight Unit told Customs Today that trade is becoming slow because of many reasons, especially tense diplomatic ties and cold weather.

Due to decrease in import of tomatoes

by Pakistan, the trade volume has decreased because Pakistani crop has reached markets. While on the other hand exports of cement and other relevant items has also decreased because cerement consumption has increased in Pakistan which affects the exports from India sources told. Export s of onion from Pakistan to India has also decreased because supply of Indian onion has increased in Indian huge market. Earlier sorces told that import of Indian cotton has increased because of bad crop in Pakistan.

Meanwhile, Directorate of Customs Intelligence and Investigation Multan Range seized smuggled goods and vehicles valuing Rs 43.34 million in 12 seizures during the month of October in the on-going Siscal year 2015-16.

Customs Intelligence and Investigations made 12 seizure cases in the month of October include two, seven, and three from Multan, Dera Ghazi Khan and Sadiqabad respectively.

gujranwala excise seals 169 properties he Excise and Taxation Department has sealed as many as 169 commercial and residential properties of the tax defaulters for not clearing their outstanding taxes in Gujranwala. According to Gujranwala Excise Director Rao Shakeel ur Rehman, most of the defaulters belonged to several local political representatives due to which they were reluctant to pay their prolonged pending dues, in this regard.

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SNGPL restores gas supply to Punjab CNG stations Wednesday, December 9, 2015

Business

LAHORE: The compressed natural gas (CNG) filling stations have been reopened as the Sui Northern Gas Pipelines Limited (SNGPL) Monday restored gas supply to all the CNG stations in Punjab. According to a spokesman of SNGPL, gas supply to filling stations would continue till further directives in this regard. Meanwhile, All Pakistan CNG Association (APCNGA) has lauded the government for resuming supply to CNG outlets in Punjab giving it a new lease of life. APCNGA central leader Ghiyas Paracha, in a statement, said the decision has saved tens of thousands of jobs and Rs300 billion investment in that sector for which Prime Minister Nawaz Sharif and Petroleum Minister Shahid Khaqan Abbasi deserve credit.

Bullish trend continues as kSe gains 83pts in early trading barrier of 33,000 (up 302.31 points) during the day, But by the day end it had shed these gains to settle at 32,853.54, gaining 145.63 points.

The top 30 company index, KMI 30 swung between up 784.44pts and down 214.51pts to close at 54,948.30 (up 520.85pts).

KSE All share ended the day up 45.81pts. Market Volumes improved 19.80% from last session and clocked in at 155.40million.

Release of sales figures helped the Cement Sector attain volume leader position with 19.52million shares traded on Monday.

KARACHI

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he Karachi Stock Market gained 83.09 points to reach 32936.63 level, with the total volume of 37,516,000 shares in early trading on Tuesday.

On Monday, the KSE-100 index opened the week on a positive note with the benchmark KSE100 breaking the psychological

pakistan on the track of economic stability: Dastgir

Banks directed to establish special counters for pensioners

SIALKOT

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KARACHI

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ederal Minister for Commerce and Industry Engineer Khurram Dastgir Khan has said that now the economical and political stability is rapidly growing in Pakistan. He stated this while addressing the participants of annual prize distribution ceremony of Pakistan Electric Fans Manufacturers Association (PEFMA) held at Gujrat.

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he Central Bank has directed all the banks to facilitate the pensioners, by establishing special counters for them in branches. According to a press release issued by the State Bank of Pakistan, the decision was taken in a meeting held in recent past and headed by Finance Min-

ister Ishaq Dar. It was ascertained during the meeting that banks should provide assistance to the pensioners regarding transfer of online pension. Besides this the banks should also become vigilant in case they do not receive nonmarriage or life certificate for more than six months. State Bank has also stated that the banks should formally implement the rules regarding pensioners from December 31.

Meanwhile, The Sindh government is developing a Marble City Industrial Enclave on 300 acres for the

promotion of marble and granite industry in the province.

This was stated by Sindh Board of Investment (SBI) Chairman Dr Asif A Brohi. He further said that the marble city project has tremendous investment and growth potential for entrepreneurs being based on cutting edge stone technology, innovation and services.

The concept is based on cutting edge stone technology and custom facilities to create largest and most technologically advanced industrial park for dimension stone (marble & granite) in Karachi.

SMeDA organises workshop for textile-related SMes of Swat PESHAWAR

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he Khyber Pakhtunkhwa of Small & Medium Enterprises Development Authority (Smeda) has organised a four-day training workshop for textile cluster of Swat with the objective of apacity building and improvement of technical skills of local textile-related SMEs. During workshop, Smeda’s textile engineer Muhammad Israr Wazir and Nishat Group’s textile engineer Ziaur- Rehman Yousafzai delivered lectures on technology upgradation and role of technology in product development and highlighted different aspects of spinning, weaving and fabric dyeing processes. The participants of training had deeply appreciated the efforts of Smeda for organizing such technical trainings and declared these trainings very useful for the development of textile cluster of the region. They further added that the workshop provided them a great learning opportunity and exploring of different technical areas in the field of textile and fabric manufacturing which enhance our technical knowledge. The participants stressed need for holding more such workshops.

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Ministries directed to expedite work on gas-based power plants ISLAMABAD

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ederal Finance Minister Ishaq Dar has directed ministries of Water & Power and Petroleum & Natural Resources to keep close coordination for timely completion of gas-based power plants.

He issued directives, while, chairing a meeting to review the financial requirements of upcoming

gas-based power plants. Secretary Water and Power and PPIB MD Yonus Dagha gave a presentation on the projects to the participants of the meeting. Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and senior officials of the ministries of Finance, Water and Power, Petroleum and Natural Resources and other related departments also attended the meeting.

The finance minister said that

transparency and efficiency should be ensured while undertaking these projects.

He also gave instructions to convene regular meetings for seeking update on progress of work. Meanwhile, With the aim to help reduce gas price in Punjab, the CNG association has announced to import LNG for filling stations.

All Pakistan CNG Association (APCNGA) President Ghiyas

Paracha, in a statement, said that LNG import will also ensure continued gas availability.

Healso blamed that the flight of dollar and depreciation in the value of Pakistani rupees were responsible for the price hike of various commodities including the imported LNG. Paracha said that Slight of dollar and erosion of rupee is a conspiracy hatched by few to beneSit few on the cost of 200 million people. It

has increased price of every imported item including imported gas.

Demanding action against those involved in the artificial price hike of dollar, he said that it should be brought back to level of Rs 100.

However, the association lauded the government for resuming supply to CNG outlets in Punjab. The decision has saved tens of thousands of jobs and Rs 300 billion investment in that sector, said Ghiyas Paracha.

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he Web Based One Customs (WeBOC) is Federal Board of Revenue (FBR)’s milestone achievement in creating a paperless environment for business community.

This was stated by the Customs Directorate General of Training and Research Director General Ghulam Ahmed while jointly inaugurating workshop on WeBOC system for small medium entrepreneurship (SMEs) with Small and Medium Enterprise Development Authority (SMEDA) CEO Mohammed Alamgir Chaudhary held by Directorate General of Training and Research in collaboration with SMEDA. Speaking on the occasion, Ghulam Ahmed acknowledged the critical role being played by SMEs in economic development of Pakistan.

Earlier, the directorate had held a series of training workshop in collaboration with Lahore Chamber of Commerce and Industry (LCCI) and American Business Forum

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Wednesday, December 9, 2015

on WeBOC and customs classification and valuation procedures, which were highly appreciated by the business community.

SMEDA CEO Mohammed Alamgir Chaudhry CEO thanked DG Ghulam Ahmed for organizing the workshop exclusively

for the SMEs. He extended full support from SMEDA to Pakistan Customs in holding similar training programs.

Speaking on the occasion, Director Zulfiqar Younas highlighted that this training workshop will enable the users to work independently and on their own on the WeBOC. The workshop was well attended, as more than 35 SMEs took part in the

workshop. The participants expressed keen interest in learning the WeBOC system. Deputy Director Customs Intelligence Salman Afzal and an expert from Pakistan Revenue Automation Limited (PRAL), Inam ul Wahid imparted the hands on training and answered the queries of the participants.

DG also presented a shield, as token of gratitude to SMEDA CEO while Director Zulfiqar Younas presented shields to Director General Ghulam Ahmed and SMEDA Provincial Chief Raja Husnain Javed. The provincial chief and Deputy Director Kanwal Ali distributed the certificates among the participants.

nas qar You fi l u Z r Directo ted that this h highlig rkshop will wo training he users to t tly enable penden e e d n i k n th wor r own o i e h t n and o . weBoc

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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

Dar’s narratives

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inance Minister Ishaq Dar, the chief of staff of Nawaz Sharif on finance and economy, has boasted of the foreign exchange reserves which have crossed $21 billion due to what he believes dynamic policies of the government. He hopes a sustained pace of growth will turn Pakistan into an economically sovereign state by 2018, the year when the mandate of the current government will end. During his meetings with officers in the Federal Board of Revenue office, he blamed the previous government for taking heavy loans due to which his government had to turn towards the International Monitory Fund to get more loans to pay back the old debts. Saying this, Mr Dar revisited the hackneyed phrases of his predecessors as the sitting officials are in the habit of blaming the previous government for every wrongdoing.

On another note, Dar appreciated the FBR officers for their tremendous performance in tax collection during the last two fiscal years, saying they have done four years job just in two years by collecting huge amount of taxes and bringing thousands of new taxpayers into the tax net. He also advised the FBR officials to fix more difficult and aggressive tax collection targets for the next year. Dar is absolutely right that tax collection needs to be increased, but it will be only possible when potential taxpayers are brought into the tax net. No one wants to pay tax voluntarily all over the world, but the tax system has been developed in the progressive economies over the years and it cannot be done overnight in Pakistan. Every country has its own ground realities and we cannot blindly follow the footsteps of others.

The PML-N government is taking tough and unpopular decisions of tax collection, but without evolving a modern tax collection system. In this situation, a hope that the nation will enjoy the fruits of the government’s unpopular decisions will remain a hope until the trust deficit between the government and the business community is removed. Quoting noted economists; Dar says that Pakistan’s economy is set to take off’. But the minister should know when wings of economy are clipped, how it will take off. There is a need to take confidence building measures between the government and the business community.

When businessmen are harassed, it pushes capital flight from the country.

Improvement in business confidence A

LAHORE

Dr AFtAB AFZAL

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ccording to a survey of the Business ConSidence Index, the overall business conSidence in the country has improved during the last eight months due to what is believed — improved security and a stable macroeconomic situation. The survey, sponsored by the Overseas Investors Chamber of Commerce and Industry, reveals that the conSidence of doing business of the overseas investors in the country has improved by four points during the last eight months. An improvement has been recorded in all sectors with 10 percent growth in retail sec-

tor which has jumped from 15 percent to 25 percent. The services and manufacturing sectors have shown an increase of three percent and two percent, respectively. Though the survey shows an increase in overall business sentiment over the last eight months, unfortunately, the conSidence level of major foreign investors have declined by seven percent apparently due to imposition of a new super tax and long delays in the tax refund claims.

The previous survey was conducted in April 2015 in which the overall business conSidence stood at positive 18 percent, showing a signiSicant improvement of 17 percent as compared to the survey conducted in September 2014 which was just 1 percent positive.

According to the OICCI chief, the government’s resolve to maintain law and order in Karachi and elsewhere in the country as well as steps to improve energy supply have pushed the graph of business conSidence upward. Besides, low inSlation, China-Pakistan Economic Corridor projects, and a stable political environment have also helped boost the business conSidence in the country. The survey depicts improved sentiments in manufacturing and services sectors from 31 percent to 34 percent and 11 percent to 13 percent, respectively, thanks to higher household spending as a result of lower inSlation. The survey points out increasing cost of production and shortage of energy as the biggest stumbling

blocks in the way of industrial growth. The security situation has remarkably improved, but still the government has to do more.

The real estate sector has emerged as one of the leading sectors in the country, showing an increase of 68 percent, followed by tobacco 38 percent, transport and communication by 37 percent, petroleum by 32 percent while chemicals and Sinance by 31 each.The textile showed bleak performance, ditched by negative 15 percent.

The government is still in the process of negotiation with traders on the issue of withholding tax on bank transactions. It is time to create opportunities to generate funds and not to create hurdles to lose the money potentially available in the national kitty.

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Ironwood Chamber support joint annual award banquet WASHINGTON: The Gulf Cooperation Council (GCC) ranked third as a destination for Qatari exports and represented 9.4 per cent of the country’s total exports. In addition to that, the GCC received 16.2 per cent of the total imports, shows a report. The quarterly report issued by Qatar’s Ministry of Development Planning and Statistics revealed that the UAE ranked first among GCC countries as a major trading partner for Qatar, according to Qatar-based Raya. Qatari exports to the UAE amounted to QAR4.7 billion and accounted for 6.9 per cent of the total exports, while imports from the UAE amounted to QAR2.5bn and accounted for 8.8 per cent of Qatar’s total imports. Kuwait came in second place with exports amounting to QAR800 million and accounting for 1.1 per cent, followed by exports to Saudi Arabia (QAR600m), which accounted for 0.8 per cent of the total value of Qatari exports.

Youngstown chamber admits soliciting funds in capital budget process tate lawmakers are distancing themselves from the Youngstown Warren Regional Chamber of Commerce at least when it comes to the capital budget process. Six state lawmakers including Senate Minority Leader Joe Schiavoni have received complaints that the Chamber has solicited funds to advocate or speak on behalf of certain groups. The arts in Youngstown are viewed by many as an economic gold mine, and they’re just one of the areas looking for funding from the state’s capital budget process. A process that’s had state lawmakers and the Youngstown Warren Regional Chamber of Commerce working together to accept applications.

Valley Senator Joe Schiavoni, who is also the Senate Minority Leader says, “Just recently we found out that the Chamber of Commerce was possibly soliciting dollars for advocacy from different art groups. So at that point the legislators took a step back. We had a meeting last night and decided that we did not want to work with the Chamber because we did not want the appearance of any kind of paying for service or paying for advocacy.” We asked Tom Humphries, the President and CEO of the Chamber of Commerce straight out, did he solicit funds from area art organizations in order to advocate for them in the capital budget process? Humphries says, “That statement that you just made is quite accurate. We did solicity the arts for some funds to help do some advocacy for them.” Humphries tells 21 News, the money was raised to showcase the Valley art community to those who make the major decisions on the capital budget. Bringing them here to the Valley and showing them the gem that is the Mahoning Valley. But in order to do that costs money. Guy Coviello, the Vice-President of Government Affairs for the Chamber of Commerce.—CB Report

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Wednesday December 9, 2015

Chambers

chinese investment of $46b paves way for region’s economic uplift: FccI Vp C

FAISALBAD

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hina Pakistan Economic Corridor (CPEC) will open new avenues of progress and prosperity for the entire region and the business communities of Pakistan and China have to prepare them to fully exploit the business opportunities brewing as a by-product of this mega infrastructure project, said Jamil Ahmad, vice president Faisalabad Chamber of Commerce and Industry (FCCI).

He was addressing a function after inking a Memorandum of Understanding (MOU) between FCCI and Shannixi Association for Promotion of International Economic Cooperation at FPCCI Punjab office. Mian Muhammad Adrees, president Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and provincial head of FPCCI Khawaja Zarar Kalim were also present during this ceremony. Jamil Ahmed said that Pakistan and China have been enjoying cordial relations for the last many decades. “The visit of Chinese President Xi Jinping has given a new

tilt to our relations in addition to paving way for the exploitation of its economic benefits. He said that the investment of $ 46 billion will gear up the economic development of this region and among its beneficiaries will include all the coun-

tries of this region.

Earlier Jamil Ahmed signed the MOU with Geo Yang, head of business delegation. Under this Memorandum of Understanding both the chambers will collectively work towards improving trade, commerce

road Show on competition Law kicks off

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ISLAMABAD

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he National Road Show on Competition Law being organized by the Competition Commission of Pakistan (CCP) throughout the country, was kicked off at the Islamabad Chamber of Commerce and Industry (ICCI).

The seminar was attended by Vadiyya Khalil, chairperson CCP, Atif Ikram Sheikh, president Islamabad Chamber of Commerce and Industry, members of CCP Mueen Batlay, Shahzad Ansar, Ikram Ul Haque Qureshi and a large number of local business community.

Addressing the seminar, CCP chairperson Vadiyya Khalil thanked all the participants and said that Competition Act was promulgated in October 2010 with the main objective to enhance economic efSi-

ciency and create a level playing Sield for undertakings. “It is proCompetition, pro-consumer protection, pro-growth and therefore probusiness,” she said.

Vadiyya Khalil said that the timing of the launch of Road Show was important as over 100 competition agencies around the world would be observing World Competition Day on 5th December by organizing events to highlight the importance of competition in the economic progress of their respective countries. She said competition policy was focused on creating the best possible conditions for consumers, investors and innovative entrepreneurs and she urged the need to work hard towards more efSicient and prosperous Pakistan.

In his welcome address, Atif Ikram Sheikh, president, Islamabad Chamber of Commerce and Industry said that anti-competition ap-

proaches always proved unfavorable for the economy and the consumers as they beneSited only a few at the cost of majority. He appreciated the role of CCP for promoting healthy competition culture by curbing unhealthy cartels and monopolies and addressing the issues of market manipulations. He said an independent, strong and effective CCP was essential to promote efSiciency in the economy and encourage domestic as well as foreign investment. He assured that ICCI would fully support the CCP in its endeavors aimed at creating a level playing Sield for business entities and better protection of consumers interests. Ikram Ul Haque Qureshi, member CCP presented an overview of the competition regime in Pakistan and explained the substantive provisions of the Competition Act, 2010. He cited case studies to help the participants understand the law.

and economic cooperation between members of both the chambers of commerce and industry. It was further agreed to work towards promoting exchange of information relating to their respective markets.

LccI demands withdrawal of new taxes xecutive committee member of the Lahore Chamber of Commerce and Industry Raja Adeel Ashfaq has feared that the recent taxation measures will add to the miseries of business community that is already coping with a number of challenges. It would be better if government takes measures to give expansion to the tax net instead of introducing new taxes for already taxed segments of society. In a statement issued here, Raja Adeel Ashfaq said that new taxation measures will jolt the very basis of the trade and industry. He said that newly introduced taxes would bring down the purchase power of the consumer that would ultimately hit the manufacturing sector hard.—CB Report

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Customs seizes 1.2 million cigarettes stuffed inside frozen carcasses Wednesday December 9, 2015

World

WARSAW: Gangsters who smuggled more than a million illegal cigarettes into the UK hidden in frozen chickens have been jailed. The ‘fowl’ plot was discovered when officers from HM Revenue and Customs (HMRC) stopped a refrigerated lorry in Mitcham Road, Croydon, in May 2013. Customs officials found more than 1.2 million cigarettes stuffed inside the frozen carcasses of chickens, worth an estimated £288,240 in lost revenue to the taxman. Last Thursday four members of the west London-based gang were convicted at the Old Bailey for their involvement in the plot, with two facing jail time. Miroslaw Rogalksi, 53, a Polish national of Popes Lane W5, was found guilty and sentenced to four years and nine months in prison.

uS customs intercepts 4.9 pounds of ice worth $850,000

NEW YORK

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he Division of Customs of the Department of Finance has intercepted another

shipment of ice from China, this time weighing 4.9 pounds and worth over $800,000.

In a press conference Monday morning, Customs Director Jose Mafnas said the ice was discovered on Dec. 2 in a 40-foot Sunleader container which had multiple consignees, one identiSied as Cai Shi

Cheng who brought in nine 5-gallon containers of paint.

Mafnas said during inspection of the pails, one of them was found to contain three boxes of ice hidden in a black plastic bag.

The plastic bag was hidden under the hardened paint material which was extracted by a Customs ofSicer during inspection.

The conSiscated drug tested positive for crystal methamphetamine commonly known as ice with a street value of $850,000.

Mafnas said they immediately alerted the Department of Public Safety, the Federal Bureau of Investigation, Homeland Security, the U.S. Marshals and the Attorney General’s OfSice regarding the ice.

Commissioner James Deleon Guerrero said, adding that the U.S. Attorney’s OfSice is expected to Sile formal charges in federal court against the three. Authorities said they have seized a total of 28 pounds of ice with a street value of over $5 million since July.

Iranian expatriate uS police seize six pounds of marijuana arrested at Doha ounds of marijuana and guns ning several stop signs northbound port for drug were among items seized in an on Western Avenue. undercover drug investigation.

Due to the reckless behavior, smuggling Clark County sheriff’s deputies deputies discontinued the chase. n Iranian expatriate was arrested at Doha Port for attempting to smuggle subsidized medicines out of Kuwait.

According to sources, Customs officers of Doha Port headed by Khalid AlFailakawi suspected an Iranian expatriate who was planning to travel to Iran and checked his luggage to find large quantity of subsidized medicines that were banned for export. He was arrested and referred with the medicines to the concerned authorities for necessary legal action against him.

Meanwhile, Referring to Iraq’s request for the purchase of Iran’s LNG, deputy oil minister reported on creation of a 48-inch split from the 7th overall pipeline in order to export gas to Oman.—CB Report

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on Dec. 4 conducted an undercover drug investigation in the area of 700 block of Knickerbocker Avenue when a deputy attempted to conduct a trafSic stop on a vehicle.

The vehicle failed to yield to the marked sheriff’s vehicle with lights and sirens activated, and sped away at a high rate of speed while run-

Several minutes later, it was discovered that vehicle had struck another at Western Avenue and Pleasant Street. The driver then Sled on foot.

The driver whose identity hasn’t been released was located later at 414 Western Ave. The drivers from both vehicles were treated at area hospitals for injuries.—CB Report

turkish police seize 350kg cannabis worth $3.5m ISTANBUL

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stanbul police have seized almost $3.5 million worth of cannabis in an operation against a suspected international drug smuggling network on Friday.

The anti-narcotics unit raided four addresses simultaneously in the city’s Avcılar, Bakırköy and Bayrampaşa districts on the European side, making seven arrests.

Intelligence suggested that a smuggling network was running illegal drugs through Kosovo and Albania, according to police sources.

More than 350 kilograms of extra-strong cannabis dubbed “skunk” were seized. The seized drugs have a value of TL 10,000,000 ($3,442,815), police said. Police added that the cash amounts totaling TL 11,000 and TL 16,600, as well as two cars allegedly bought with drug money

were also seized. Five of the seven suspects remained in custody while the remaining two were released, said police. OfSicers said that skunk – which can be sold for TL 30,00050,000 per kilogram – was a mixture of cannabis and chemicals. In November this year, Istanbul police seized more than 50 kilograms of another dangerous street drug dubbed “bonsai” as well as over 2,000 grams of hashish and an amount of cocaine, together with equipment used to prepare illegal drugs. In June last year, Parliament passed legislation introducing harsher punishments for drug dealers, especially if their victims are minors.

Meanwhile, Istanbul police have seized almost $3.5 million worth of cannabis in an operation against a suspected international drug smuggling network. The anti-narcotics unit raided four addresses simultaneously in the city’s Avcılar, Bakırköy and Bayrampaşa districts on the European side, making seven arrests.

Malaysian customs seizes 500,000 litres of smuggled alcohol in 2015

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oyal Malaysian Customs Department ofSicers across Selangor have conSiscated 530,000 litres or RM4.3 million worth of alcohol brought into the country illegally since January. The Star Online reported annual Sigures released by Selangor Customs director Datuk Badaruddin Mohamed RaSik. He said Ops Outlet raids on 345 stores, plus 24 containers, bonded trucks and warehouses had netted almost enough liquor to Sill two standard size swimming pools. “We have arrested 111 and 96 were compounded, producing more than

RM200,000 in Sines,” Badaruddin said in a statement. “Disrupting criminal trade is at the heart of our strategy to clampdown on the illicit alcohol market, which costs the country millions of ringgit every year. “This is a theft from the taxpayers and undermines legitimate traders. “We strive to enhance our enforcement through joint collaboration with the Confederation of Malaysian Tobacco Manufacturers and the Confederation of Malaysian Brewers Berhad (CMBB), as well as with other enforcement agencies.”—CB Report

gatwick baggage handler jailed for drug smuggling

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LONDON

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baggage handler at Gatwick airport has been jailed with three others for smuggling drugs worth a total of £700,000 into Britain. David Fox, of Brighton, East Sussex, would use his work privileges to access the transfer shed of

the airport to remove the drugs from suitcases and smuggle them out among his own belongings. He would also remove baggage labels from travellers’ luggage to reuse them on baggage that contained drugs, according to the National Crime Agency (NCA). The 65-year-old, who was assisted by Stephen Chambers, 45, of Brighton, was caught out when a rucksack containing 4kg of cocaine

was sent to a different part of the airport and he was unable to retrieve it.

The drugs worth £500,000 were seized by Border Force ofSicers in the incident in September 2012. An NCA spokesman said: “Both men pleaded guilty in the face of overwhelming evidence. Fox had gone into work on his day off in the hope of retrieving the drugs, and phone evidence showed the men had spoken the

night before. Incriminating baggage labels were found at the home address of Fox and in a container rented by Chambers in Lancing, Sussex.” Fox, who is serving a 10year sentence for attempting to import 12kg of cocaine into Gatwick in May 2013 and 5kg in June 2013, was sentenced at Kingston crown court to a further four years to be served consecutively.

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Kongsberg Evotec withdraws appeal in Rolls-Royce Marine case KONGSBERG: Kongsberg Evotec has decided to withdraw its appeal on a court settlement with Rolls-Royce Marine, in order to save “further efforts and resources on a continued court procedure in a challenging period for the maritime industry”.

Norway’s Sunnmøre District Court in June ordered Kongsberg Evotec to pay damages of NOK 95m (then $12.8m) to Rolls-Royce Marine for breach of the Marketing Act. The company avoided a ban on production and sale of equipment packages for quarterdeck operations on seismic vessels. The damages were paid in the second quarter.

“The company wants to focus fully on operations and development of the company going forward,” Oslo-listed Kongsberg commented in a filing today.

Jamaica customs Agency set to handle increase in shipments he Jamaica Customs Agency says it is in a full state of readiness to handle the expected increase in cargo shipments during the festive season.

Senior Director of the entity’s Kingston operations, Selina Clarke-Graham, said the agency is already seeing an uptick in the volume of imported items and measures have been implemented to facilitate the clearance of goods. “We have moved quite a number of our officers and placed them into mainline operations to assist with the influx of customers that we are seeing at this time,” she said at a press conference held at the agency’s Newport East location on Thursday, December 3.

“We are also deploying additional roving officers to our air and seaports to ensure that they are there to assist our customers with the completion of forms, especially the elderly (in order) to avoid undue delays,” she added. Customer service officers will also be deployed in key areas at the sea and airports and opening hours will be extended in order to have a seamless process in the collection of barrels and other goods.—CB Report

Ports & Shipping

uS machinery shipments post strong performance in Q3

cean Installer has won a contact from Folawiyo Aje Services for offshore construction work at the Aje Ph1 project off the coast of Nigeria, the company’s first project offshore Nigeria.

The Norwegian subsea specialist says the scope of work includes mooring buoy installation and hook up, flowline and umbilical installation. Steinar Riise, CEO of Ocean Installer, commented: “We are very pleased to have been awarded our second major contract in West Africa. This proves our Africa strategy is fruitful and allows us to further strengthen our foothold and develop our relationship with clients active in the region.”The contracts starts with immediate effect, and ffshore operations will be performed by CSV Normand Vision.—CB Report

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Michigan’s congressional delegation seeks funds for port plaza hree members of Michigan’s congressional delegation are again appealing to the Obama administration to give higher priority to funding an expanded customs plaza at the Blue Water Bridge in Port Huron in the next federal budget.

The Blue Water Bridge, which links Port Huron with Sarnia, Ontario, has awaited a delayed $165 million construction project for several years.

Sens. Debbie Stabenow, D-Lansing, and Gary Peters, D-Bloomfield Township; and Rep. Candice Miller, R-Harrison Township, wrote Thursday to Homeland Security Secretary Jeh Johnson and Shaun Donovan, director of the Office of Management and Budget, urging the “strongest possible funding” for the facility construction account at U.S. Customs and Border Protection.

“The Blue Water Bridge is the United States’ third-busiest land crossing in terms of value of shipments,” the lawmakers wrote.

“Focused investment in modern infrastructure and technology at our busiest land ports of entry, such as the Blue Water Bridge, is essential to our economic well-being and security.”

Miller thought she had a commitment from the administration to fund the customs plaza in her district four to five years ago.—CB Report

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ocean Installer wins Nigeria contract

Wednesday December 9, 2015

WASHINGTON

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achinery shipments posted another strong performance in the third quarter of 2015, according to the Society of the Plastics Industry Inc.’s Committee on Equipment Statistics. Year-to-date, shipments of primary machinery is almost exactly the same as it was during the Sirst nine months of 2014 — in other

words, at a strong level, SPI reported. The plastics industry is growing faster than other parts of the manufacturing economy, said plastics economist Bill Wood, who reports on the machinery markers for the CES. “The trend in the CES shipments data Slattened out in the middle of 2015, but at a high level,” Wood said.

“Activity levels in the U.S. manufacturing sector slowed in the third quarter, and plastics machinery suppliers felt the effects. But the plastics industry continues to expand faster than many other industrial seg-

ments.” Washington-based SPI reported the third-quarter machinery data on Dec. 3.

According to SPI, third-quarter shipments of all primary plastics equipment from companies that reported the data — injection molding presses, blow molding machines and single-screw and twin-screw extruders — totaled $300.6 million.

That was a small gain of 0.8 percent from the total of $298.4 million in the second quarter of 2015, but it was a decline of 4.6 percent when compared to the year-ago third quarter of 2014.

IDc expects growth for smartphone shipments in 2015

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WASHINGTON

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ccording to new Sigures by the International Data Corporation (IDC), a market analysis and research Sirm, 2015 will be the Sirst year where we will see only a single-digit growth for smartphone shipments. The Sirm predicts a slow growth of only 9.8% this year, equating to just 1.43 billion units.

Regarding the reason for such a prediction, IDC mentions the slow-

down of shipments in the Asia PaciSic region (excluding Japan), Latin America, and Western Europe. Also, this trend is also allegedly due to lower shipment forecasts of Windows Phone handsets, as well as alternative platforms, or phones running operating systems other than iOS, Android, or Windows Phone.

Lastly, the economic slowdown in China is blamed, diminishing worldwide growth. This will reportedly intensify slightly over the 20152019 period.

However, the Middle East and

Africa (MEA) will supposedly see the highest growth in 2015, with a 50% YoY (year-over-year) increase in shipments, surpassing “hot growth” markets like India and Indonesia.

“With the smartphone market Sinally slowing to single-digit growth, maintaining momentum will depend on several factors,” according to Ryan Reith , Program Director with IDC’s Worldwide Quarterly Mobile Phone Tracker. “The main driver has been and will continue to be the success of low-cost smartphones in

emerging markets. This, in turn, will depend on capturing value-oriented Sirst-time smartphone buyers as well as replacement buyers.”

IDC predicts that replacement cycles in high-growth markets will be less than the typical two-year rate, as the components of a budget smartphone, usually those under $100, do not have the capacity to survive that long. “Offering products that appeal to both types of buyers at a suitable price point will be crucial to maintaining growth and vendor success,” said Reith.

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Rawalpindi Excise recovers Rs 4.5m from token tax defaulters RAWALPINDI: Excise and Taxation Department has recovered Rs 4.5 million by imposing fine on 2,000 token tax defaulter and unregistered vehicles.

According to the details, on the direction of Excise and Taxation Director Tanveer Abbas Gondal, the excise teams conducted operation against offender vehicles in different areas including Attock, Jehlum, Chakwal and Rawalpindi.

Officials said that the department has re-launched the operation after local bodies elections, adding that operation was continue in other regions where elections were not held.

Wednesday, December 9, 2015

CUSTOMS BULLETIN

gwadar customs seizes smuggled cosmetics during crackdown KARACHI wAQAr AhMeD ANSArI www.customsbulletin.com

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he Customs Collectorate Gawadar impounded a huge quantity of smuggled cosmetics worth millions of rupees during a crackdown.

Sources told Customs Today, that collector Syed Tanvir Ahmad received secret information about smuggling of cosmetics after which he constituted a raiding party. The customs team intercepted a coach which was coming from Karachi and seized a huge quantity of foreign origin cosmetics and clothes.

Sources said that smuggling attempts are being made on coaches which are operating between Karachi and Quetta route. The smugglers are used to store smuggled items at Yousaf Goth and then transport the same material by using small vehicles in Karachi markets. Meanwhile, The Customs Gwadar has confiscated smuggled cloth and cosmetics worth millions of rupees in a successful raid.

According to details, on the directions of Customs collector Syed Tanveer Ahmed, a team of Customs

Gwadar intercepted a passenger bus traveling from Quetta to

Karachi. During the search of the bus, they found smuggled cloth

worth million of rupees. According to sources, a number of buses are

being used for smuggling which travel from Quetta to Karachi.

Smuggling of Iranian diesel: Judge adjourns hearing until Jan 25 KARACHI

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he Special Court of Customs Taxation and AntiSmuggling on Monday expressed displeasure over the investigation officer for failing to trace out absconding accused in a case pertaining to the smuggling of Iranian diesel.

Judge Syed Faiz Rasool Rashdi came down hard on in-

vestigation officer, Qasim Ali Alvi, when he told him that he could not nail the two alleged smugglers and requested for another chance. While adjourning the hearing until January 25, the court repeated the non-bailable warrants for the arrest of the accused and asked the IO to make all-out efforts to trace them. According to the prosecution, Pakistan Customs’ Anti Smuggling Organization (ASO) raided a godown located in the Korangi area of Karachi and seized 9,700 liters of Iranian diesel along with an oil tanker

on October 02, 2015. Noor Akbar was taken into custody from the godown. Subsequently, an FIR was registered against Noor, Suhail and Mubashir under the customs anti-smuggling laws.

Noor has been released on bail, while the rest of the accused are on the loose.

Meanwhile, The Special Court of Customs Taxation and AntiSmuggling put off till January 13 a case pertaining to the smuggling of a huge quantity of liquor into the country. Judge Syed Faiz Rasool Rashdi adjourned the case due to absence

of the accused persons’ counsel.

According to the prosecution, Pakistan Customs Directorate of Intelligence and Investigation had seized a huge quantity of whisky and alcohol beverages of assorted brands which were concealed inside 18 rolls of test liner and recycle liner paper.

The goods seized included 3,340 bottles of Black Label, 1,030 bottles of Red Label, 993 bottles of White & Mac, 298 bottles of Cattos, 181 bottles of Vodka, 260 bottles of Cordier, 212 bottles of Grant, 1 bottle of Medoc, four bottles of Listel,

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

141 bottles of Chivas Regal, 293 cases of 6,816 cans of Beer Carlsberg.

Subsequently, an FIR was registered against accused Abdul Dawood, the proprietors of M/s A-Z Corporation, his accomplices Shahid Khatri, Muhammad Zubair, Jawad Ghaffar, Rashid Iqbal, and Saleem aka Mamo. Earlier, the court had imposed a fine of Rs 500,000 each on accused Shahid Khatri and Jawad when they pleaded guilty to their involvement in the crime and ordered their release.