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PakISTaN’S fIRST INDEPTh NEwSPaPER ON CUSTOMS
Daily
Vol 1 Issue No. 251
Karachi, Tue December 1, 2015
KARACHI
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ederal Minister for Ports and Shipping Kamran Michael has said that Pakistan is committed to the safety and security of the shipping industry and the country fully endorses the efforts made by the International Maritime. He said this while addressing the 29th regular session of the Organisation (IMO) Assembly where he was leading Pakistani delegation. The session is being held at the IMO Headquar-
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ters in London from November 23 to December 03, said a press release received here. The minister called for concerted efforts of all the member states to ensure safety and security of mariners at sea. Pakistan Navy and Pakistan Maritime Security Agency fully participate in the patrolling of assigned areas and would be willing to further play its part in ensuring safety and security, he said. Emphasizing the importance of international and regional maritime trade for Pakistan, the Minister for Ports and Shipping briefed the delegates on the construction of deep draft port at Karachi.
Nazim Saleem to head Customs Appellate Tribunal Bench-II Karachi
FTO, 16 other officials dealing with complaints at HQ, regional offices
Dr Tariq Fazal for one-year plan to beautify capital
Multan Customs collects Rs 54b from tax defaulters: Haroon Tareen
LCCI urges FBR to stop attaching business accounts of traders
NazimSaleem,PCS/BS-21hasbeenposted asAccountantMemberattheCustoms | SEE PagE 02 |
FTO Abdur Rauf Chaudhry has appointed as many as 16 dealing oďŹƒcers | SEE PagE 03 |
1 year comprehensive action plan would be formulated to turn the federal capital | SEE PagE 04 |
The govt has been taking the key steps to bring the tax worthy people in the tax | SEE PagE 12 |
The LCCI urged the FBR to stop attaching business accounts | SEE PagE 09 |
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Rawalpindi Customs recovers Rs 195,000 from passenger Tuesday, December 1, 2015
National
RAWALPINDI: Customs Rawalpindi authorities has recovered Rs 195,000 Pakistani currency from a passenger at Benazir Bhutto International Airport Islamabad and arrested him. According to details accused Aamir Shehzad ,who is a resident of Rawalpindi, was going to Jeddah through Saudi Arabian flight No SV 727 from Islamabad. During the checking process of the customers, customs authorities recovered extra money from the limit which was illegal according to law. Moreover the customs authority arrested Aamir Shehzad on the spot and registered a case against him.
Nazim Saleem to head Customs appellate Tribunal Bench-II karachi
ISLAMABAD
KARACHI
M aRShaD
afTaB ChaNNa
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he current government has obtained foreign loans tune the tune of $9,750.87 million since it took over the charge a period spanning from June, 2013 to September 30, 2015. Bonds worth of $ 3,499.35 million and loan from the International Monetary Fund (IMF) worth of $ 4,769.10 million is not including in this amount. The State Bank is the custodian of the loan. The loan on becoming due will be repaid in US dollar amount from the foreign exchange reserves of the government. “As per rules Rules of Business, the Economic Affairs Division plays core function for assessment of requirements, programming and negotiations of external economic assistance and technical assistance from foreign governments and multilateral agencies” a well placed official source at Finance Ministry told this scribe saying that EAD also monitored and evaluated aid requirements in collaboration and consultation with line ministries and agencies and provincial governments. EAD has a mechanism of holding bi-annual or annual reviews with bilateral partners to review all foreign funded projects including the technical assistance.
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uhammad Nazim Saleem, PCS/BS-21 has been posted as Accountant Member at the Customs Appellate Tribunal Bench-II Karachi with immediate effect for a period of three years, while Juneid Akram, PCS/BS21 has been posted at Customs Appellate Tribunal Bench, Peshawar. According to a notiPication No. 2770C-I/2015 issued by Secretary (MgtCus-I) Ghulam Ali Malik, in pursuance of Law, Justice and Human Rights Division Islamabad’s notiPication No F.2(9)/2015-A-IV dated 2.11.2015, the services of the following BS-21 ofPicers of Pakistan Customs Service PCS, are placed at the disposal of Law, Justice and Human Rights Division, Islamabad, as Accountant Member BS-21 in the Customs Appellate Tribunal on deputation basis with immediate effect, for a period of three years or till they attain the age of superannuation or until further orders whichever is earlier. Meanwhile, Customs Appraisement-South Chief Collector Abdul Rasheed Sheikh has made transfers/postings of ofPicials (BS-19) of Pakistan Customs Services. According to a notification, Model Customs Collectorate Appraisement-West Additional Collector Muhammad Irfan Wahid has
govt obtains $9,750.87m foreign loans from June 2013 to Oct 2015
been transferred and posted as additional collector at AppraisementEast, Karachi. Appraisement-West Additional Collector Azhar Hussain Merchant has been assigned task as additional director at Directorate of Risk Management, Karachi in addition to his own duties. Moreover, Appraisement-East
Additional Collector Muhammad Haris Ansari is relieved from the charge of additional director at Directorate of Risk Management, Karachi. Meanwhile, the chief collector has also reshuffled three appraising officers. Appraising officer Rana Javed Sarwar has been transferred from Model Customs
Collectorate Appraisement-West and posted at Port Qasim. However, Sajjad Asghar Bukhari from Port Qasim has been transferred to Directorate General of Transit Trade. And, Ali Akber from Directorate General of Transit Trade has been transferred to Appraisement-West.
ShC seeks customs’ comments in Pak farming Care case KARACHI
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he Sindh High Court has summoned comments from Pakistan Customs on a petition of M/s Pak Farming Care seeking release of its consignment of pesticides. Petitioner M/s Farming Care sub-
mitted that it had imported 18.240 metric tons of fertilizers and agriculture-related chemicals from China and made payments in terms of customs duty and taxes. According to the Import Policy Order 2013, the petitioner’s counsel said, fertilizers, pesticides and other chemicals meant for agriculture purposes are imported in accordance with the provisions of Agriculture Pesticides Ordinance 1971. While complying with the laws the petitioner submitted certiPicate
for Import of Pesticides Registered Abroad issued by Department of Plan Protection with the general declaration and also provided PreShipment Inspection CertiPicate dated March 2, 2015, the counsel said. Nevertheless, he added, the consignment was not being released. He told the judges that he had learned that the goods were not being cleared on account of PreShipment Inspection CertiPicate not being endorsed by the concerned department which is now an essen-
tial condition. However, the counsel argued that the same condition is not applicable to the subject consignment as the bill of lading in respect of it had been issued prior to the introduction of that condition. Therefore, he pleaded to the court to order the authorities to release the petitioner’s consignment. Meanwhile, The Sindh High Court (SHC) has sought comments from the customs authorities on a petition seeking release of the consignment of engine parts.
M/s Chief Auto Centre (Pvt) Limited submitted before the court that it had imported 10.466 metric tons of Japanese origin liners and piston ring sets for diesel engines of assorted brands classiPiable under HS Code 8409.9999. Those engine parts are used in excavators, fork lifters, and bulldozers. Advocate Kailash, the counsel for the petitioner, stated that the importer through its clearing agent Piled general declaration for assessment of the value of the goods.
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FBR reinstates three suspended officials of Port Qasim KARACHI: The Federal Board of Revenue (FBR) has ordered reinstatement of three officials of BS-16, who were suspended from duties. The reinstated officials are appraiser Mohammad Idrees, appraiser Ghulam Hussain, and appraiser Mohammad Ishaq.Sourcs told Customs Today that these officials were suspended in August 2014 for six months because some official inquiries were going on against them, but now authorities have decided to reinstate them on temporary basis. Sources further said that prior to this. seven officials who belong to BS 16 were also reinstated, while inquiries against some officials are still in progress.
Customs Court declares alleged smuggler a proclaimed offender
Tuesday December 1, 2015
National
fTO, 16 other officials dealing with complaints at hQ, regional offices
LAHORE
M IMRaN MEhaR
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he Special Customs Taxation and Anti-Smuggling Court has declared an alleged smuggled proclaimed offender as he failed to comply with the orders of the court, directing him to appear before the court. As per details, the court had issued notice to Muhammad Shareef Bhatti son of Muhammad Aleem, a resident of Noshehra, to appear in court within 10 days of the notice, as he was wanted by the customs authorities in a smuggling case. But, the accused did not appear before the court and has been declared proclaimed offender.
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fBR scrutinising subsidy claims filed by power companies ISLAMABAD
ShahID MINhaS
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he Federal Board of Revenue (FBR) has started scrutiny of tariff differential subsidy claims filed by power distribution companies. Sources said that the FBR has sent these claims to the Inland Revenue (IR) Operations for checking the claims and also compare the amounts claimed by the companies with the due sales tax. The board has also directed the IR to check whether sales tax is included in the tariff differential subsidy claims or not. The sources added that power companies have not deposit the taxes equivalent to the amount that is collected from customers on bills. They also said that the power companies also deposited the taxes to national exchequer with delay that is also illegal.
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ISLAMABAD
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he Federal Tax Ombudsman, Abdur Rauf Chaudhry has appointed as many as 16 dealing ofPicers for entertaining taxpayers’ complaints which were being Piled consistently at FTO ofPice. FTO and the other concerned ofPicers are dealing in complaints related to income tax, sales tax, federal tax, customs and contempt proceedings. Muhammad Yasin Tahir, Muhammad Munir Qureshi, Haji Ahmed, Justice (Retd) Muhammad Nadir Khan, Asaf F Vardag, Manzur Hussain Kureshi, Sardar Irshad Shaheen, Arshad M Cheema, Razia Sultana Tahir, Muhammad Younis Khan, Umar Farooq, Imtiaz Ahmed Barakzai, Muhammad Siddique, Ibrar Ahmed Khan and Afzal Nau Bahar Kayani are the members hearing and deciding complaints other than the FTO. These ofPicers were performing their duties at FTO headquarters in the capital city, Islamabad and regional ofPices in Karachi, Lahore, Quetta and Peshawar. Meanwhile, Working amid shortage of staff, the Federal Tax Ombudsman (FTO) ofPice has postponed recruitment of staff for BPS-16 and above. The Federal Tax Ombudsman ofPice, which was all set to make new recruitments, had postponed the hiring as per directions from the
high ofPicials. Sources privy to Customs Today stated that recruitment for BPS-16 and above were postponed as the authorities had doubts over the direct recruitment. FTO secretariat was likely to make new recruitment for BPS-16 and above either through Federal Public Service Commission or through some private body, they said. They also said that dozens of posts were lying vacant and admin-
These 16 officers were performing their duties at fTO headquarters in Islamabad and regional offices in karachi, Lahore, Quetta and Peshawar
Quetta Customs seizes 550 bags of smuggled fertiliser KARACHI
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irectorate of Customs Intelligence and Investigation Quetta has seized 550 bags of fertilizer which were being smuggled to Afghanistan. Sources told Customs Today that Customs authorities received credible information that a huge
quantity of fertilizer is being smuggled from Quetta to Afghanistan. The customs authorities formed a team who intercepted a truck and seized 550 bags of fertilizer. The market value of the seized fertilizer is Rs 3.8 million. During initial investigation driver of the vehicle who was identiPied as Mohammad Amin told that he was ordered by his boss to deliver these bags to Pasni Road. Customs authorities arrested the driver and registered a case against him. It is pertinent to mention here, that during last mnth customs
authorities also seized 1200 bags of fertilizer which were being smuggled to Afghanistan. Meanwhile, The Customs authorities raided a godown situated in Boltan Market on Friday and seized non-duty paid items. The market value of the seized goods are Rs 6 million. Souces told Customs Today that customs authorities received credible information that some non-duty paid items are stored in a godown of Boltan Market after receiving the tip of customs authorities raided the godown and recovered the goods.
istration was working on different options to materialize recruitment in the near future. Meanwhile, The Federal Tax Ombudsman (FTO secretariat has issued interview letters to 20 candidates for the posts of assistant, upper divisional clerk (UDC) and lower divisional clerk (LDC). According to the ofPicials of FTO secretariat, letters have been issued to 14 candidates of post of assistant, four and two against positions of UDC and LDC posts.
Customs Court hears 18 cases on Saturday he Special Court of Customs Taxation and Anti-Smuggling heard 18 important cases on Saturday and adjourns most the cases. On Saturday, a total 18 cases of different types were scheduled including prearrest bail pleas of accused persons as well the court adjourned bail pleas of Touqeer Butt, Siraj Malik and Hussain until the next hearing of the cases.
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Oil prices trade below $42 in Asia Tuesday, December 1, 2015
Business
Singapore: Oil prices traded below $42 in Asia Monday ahead of an OPEC meeting and the release of data on China´s important manufacturing sector later in the week. The market will be watching whether members of the Organization of the Petroleum Exporting Countries, which meets on December 4, slash currently high output levels and ease a crude supply glut that has depressed prices for more than a year. Analysts said traders will also tune in to two key speeches by US Federal Reserve chair Janet Yellen this week for signs on the timing of a hike in US interest rates.
kSE crashes, losing 699 points to close at 32261 level KARACHI
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he Karachi Stock Exchange witnessed another trading day with bearish trend and crashed on Monday, losing 699.03 points or 2.12 per cent to drop to 32261.25 points level at closing. The market recorded the highest trading level of 32994.19 points and lowest level of 32195.31 points, with the volume of 88,825,660 shares, having
Rice export up by 10.78% LAHORE
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Rs5,910,712,051 value. As many as 331 companies were active; of which 52 advanced, 268 declined and 11
PIa’s fleet being raised to expand flight operation: azeem
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he rice export from the country have surged by 10.78 percent during first four months (July-October) of the ongoing fiscal year against same period of last year while export of basmati rice decreased by 31.22 percent to 131,160 metric tons from 174,191 metric tons during the corresponding period. According to statistics, 898,603 metric tons of rice worth $339.92 million was exported during July-October 2015.
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remained unchanged. Oil & gas marketing companies remained the highest traded sector with total volume of
3,371,900 shares, while the Commercial banks remained second traded sector with a total volume of 3,191,600 shares. Despite losing share price, the three top traded companies were K-Electric Ltd with a volume of 13,255,000 and price per share of 7.20 (-0.08), TRG Pak Ltd with a volume 9,323,500 of price per share of 37.25 (-1.28), Silk Bank Ltd with a volume 7,425,000 of price per share of 1.88 (0.00). The top three advancers were Pak TobaccoXD with price per share 1050 (31), Colgate PalmoXD with price per share of 1498 (9.99) and AKD CapitalXD with price per share of 187.56 (8.93).
ISLAMABAD
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rime Minister’s Special Assistant on Aviation Shujaat Azeem has said that the strength of Pakistan International Airlines (PIA) Pleet was being raised to expand its Plight operation. Some 15 aircraft had already been added in the Pleet of 37 and with addition of Pive more by the current year
end, the total strength would become 42, he said while talking to a private news channel. He said that revival of the national airline was the vision of Prime Minister Nawaz Sharif, who had entrusted that task to him. Azeem said that collective wisdom was needed to run the airline. For the Pirst time a professional board had been constituted. Moreover, competent people were being hired, including some Germans in the marketing department. He said that more than 300 employees holding fake degrees had been terminated. Replying to a question, he said that the age of an
operational aircraft had been reduced to nine years from 14, which would be further decreased to six. Azeem said that after lapse of 15 years, an aviation policy was being fomulated on the directives of the prime minister. Under the policy, investment in the sector would be exempted from tax. Only the revenue generated would be taxed, he said. He said that facilities such as Internet and Wi-Fi would also be introduced in PIA’s Plights. The special assistant said that the Civil Aviation Authority (CAA) was working to provide best facilities to the passengers at airports.
Tariq for one-year plan to beautify capital ISLAMABAD
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one-year comprehensive action plan would be formulated to turn the federal capital into the most beautiful and model city of the country. This plan would cover the enhancement in the green character, improvement of road infrastructure and up-gradation of civic amenities in Islamabad. These views were expressed by Minister of State for Capital Administration and Development Division (CAAD), Dr Tariq Fazal Chaudhry while chairing a meeting at Capital Development Authority (CDA) headquarters yesterday. During the meeting, the minister was briefed in detail about the functions and development projects of the CDA. On the occasion, Member Administration, Amer Ali Ahmed while briefing the state minister apprised him that in order to promote the development activities, the CDA has initiated many significant and mega projects in the city while many other projects aimed to improve the basic facilities in the city have also been envisaged which would be launched in near future. Amer informed the minister that sitting CDA management has not only initiated new projects in the city but also started development work.
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Over 5m families given Rs 315b in 7 years under BISP ISLAMABAD
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inance Ministry has released Rs 315 billion to Benazir Income Support Program (BISP) in last seven years for disbursement among more than Pive million benePiciary families. “This amount has been released from the day of inception of BISP July 2008 till mid of 2015”
a well-placed official source at Finance Ministry told this scribe here on Sunday. The source said that Rs. 18.94 billion had been disbursed to more than 1.1 million beneficiary families across the country from FY 2009-10. BISP was started as the safety mechanism for the poorest of the poor against fuel and food inflation. Program is not a poverty reduction program rather it is an income support program to provide a min-
imum income package to the poor, to protect the vulnerable population against chronic and transient poverty. However for the first time the most vulnerable people have an access to a basic safety net program that has positively impacted on their living conditions. Over the years, Finance Ministry has been increasing the budget allocations for BISP from Rs.40 billion in 2012-2013 to an allocation of Rs.75 billion in 2013-14 and then
to Rs.97.15 billion, in 2014-15. Now, the allocation has been further enhanced to Rs.102 billion for FY 2015-16. However, during the tenure of the incumbent Government Finance Ministry also has increased the budget of Pakistan Baitul Mal (PBM) for FY 2015-16 from Rs.2 billion to Rs.4 billion. PBM is not directly dealing with the task of reduction in poverty ratio. However, its ongoing schemes/programmes are defi-
nitely contributing towards reduction in overall financial problems by giving financial and social benefit to the most deserving and neglected segments of the society. Meanwhile, The ECC is scheduled to meet today (Monday) under the chairmanship of Finance Minister Ishaq Dar for considering approval to raise the regulatory duty on over 300 imported luxury items and increasing the excise duty on cigarettes.
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he investigation agencies have approached the Federal Board of Revenue (FBR) for the provision of required data in famous and much talked Axact case. The agencies have made requests to the FBR to direct sub-departments for the provision of vehicles record, export of software and IT services record and others in this case, a wellplaced ofPicial source at the FBR told Customs Today. In this regard, the source said that the Excise and Taxation Department, Karachi had been approached for the provision of vehicles record registered in the name of the company. Similarly, Customs House Karachi has been contacted for the supply of information about the number of imported vehicles by the said company as well as amount paid as customs duty on the import and export of software and IT services. Moreover, Foreign Exchange Policy Department of the State Bank of Pakistan has been approached for provision of tune of bank transactions made in foreign currency from abroad in the account of said company as well as accused violation of Anti Money Laundering Act 2010.
However, the concerned investigation agen- provide the justiPication of transactions made cies are still waiting for reply from the FBR in and out of their accounts. The reply is and its departments regarding provision of awaited. Bail applications Piled by accused demanded record. Interim Challan u/s 173 persons whose bails were rejected by the Cr.PC to the extent of 21 accused persons was Court of District and Session Judge South submitted in the trial court on 16-7 2015. (Trial Court) Karachi, are subjudice in the Earlier, the interim charge sheet Sindh High Court. Meanwhile, Senior vice of the case was submitted in president Azad Jammu and Kashmir Chamthe court, on 13-6-2015, ber of Commerce and Industry Raja Khalid against thirteen accused Mehmood Khan said that persons and supplemenfrom 16 circles of tary interim charge Azad Kashmir, the sheet of the case was Federal Board of Revsubmitted on 27-6enue has collected Rs 2015 after arresting 10 billion. He said four more accused perthat there is sons and one absconding not a single s person. Bank accounts of almember of e i c n e at i o n a g leged company, its CEO and the Kashg i t s e g v n n i I ait w l other accomplices have mir Counl i t s e d ar al been frozen under the cil who r e d concerne e f e th m provision of section 8 of h a s o r f y l fo r a r e p nd its AML Act 2010, with the knowla e u n e v Re f o permission of the Court of edge of d r a s o t B en m t r a District and Sessions a c t u a l p e d f r e l e va n t o Judge, South, Karachi. problems n o i s i g p r ov Under section 9 of Anti being faced regardin ord c Money Laundering Act, by the e r d e d deman 2010, show cause notices traders of have also been issued to the acAzad Jammu cused persons requiring them to and Kashmir.
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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
Poor water management
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hen it comes to water management, the policymakers are as worse as they are in financial discipline, industrial management and other economic sectors. Water is life but growing population and depletion of water resources are emerging as the biggest challenge not only for the economy of Pakistan but also for the economies in the rest of the world. Pakistan is an agricultural country but level of underground water has reached 1,700 m3, revealing a drastic fact that the country lies within the group of countries which are experiencing periodic water shortages. According to Falkenmark Indicator, a country is considered water scarce when its renewable water resources are between 1,000 m3 and 1700 m3. The per capital availability of water in Pakistan, having a population of 34 million at the time of independence, was 5,260 cubic meters (m3) which decreased to 1,032 m3 in seven decades. Now the population is increasing at one of the fasts rates in the world and the availability of water is declining at the same speed. According to a study of the Water and Power Authority, the per capita water availability will be 909m3 by 2020 and the situation will get even worse when it will decrease to 769m3 by 2050 in the country. The coming generations are prone to face the challenge of water scarcity when it will reach below 500m3. If this situation goes on, one can imagine what will be fate of agriculture as well as of the economy in this country. The biggest challenge before the policymakers is not to increase water resources, but water management. The annual flow of water in Indus system is 140-145 million acre feet (MAF) with storage capacity of only 14.06 MAF and burden of storage lies only on three dams. The average storage capacity in the world is 40 percent with 20,000 MAF water availability and 8,000 dams. River Nile, which flows through Sudan and Egypt, has the storage capacity of 281 percent or 132MAF while Sutlej Bias Basin in India has the annual capacity of 35 percent. Pakistan has one of the worst water management systems in the world. When water scarcity is haunting agriculture and energy sectors, the country allows average water flow of 30 MAF into the Arabian Sea against ecological needs of 20 MAF.
Need to boost housing industry T
LAHORE
DR afTaB afZaL
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he housing industry has the potential to act as an engine of growth for industrial development in the country as it has linkages with around 40 other industries. It needs special attention of the government in terms of concessions in taxes and duties on the import of construction machinery. The importance of the industry can be judged by the fact that 3.6 million individuals are added to its population every year, making Pakistan as the sixth largest populated country in the world. Housing is the principal need of every individual, besides food
and other necessities of life. Though the housing industry is thriving in the country and has become one of the most lucrative businesses in recent years, it is the sector which can ensure sustainable economic growth with growing population at a fast rate and is likely to become the largest Muslim country in the world by 2050 crossing Indonesia. The country faces shortage of housing facilities, especially in low-income groups. According to statistics, the country is facing a massive shortage of around nine million units and a large chunk of population belongs to economically disadvantaged members of the lower middle classes. On another note, the process of ur-
banisation has been started at a fast rate. Cities’ population is swelling, resulting in the mushroom growth of slums and low grade settlements in major metropolitan areas. The federal and the provincial governments have introduced various housing finance schemes which also include construction of housing for low income families. The State Bank of Pakistan has advised banks to promote housing finance as the provision of affordable housing and mortgage finances are paramount to cope with growing cities. The government is taking various steps to come up with affordable solutions and SBP is actively involved in supporting the housing sector. If the government is
sincere in economic growth, it has to take urgent steps to resolve the housing problems as the fast process of urbanisation could create serious housing challenges for the coming generations. There are 10 large cities in Pakistan, including Karachi and Lahore, which constitute 62 percent of the total urban population. The city population is growing at the rate of 30 percent.The World Bank estimates that the gap between supply and demand is increasing by more than 300,000 housing units per year whereas the country is already facing a backlog of around ten million housing units. The solution to housing problems can make Pakistan a better place to live.
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Saudi riyal devaluation talk ‘far-fetched’ RIYADH: Saudi Arabia has the tools available to protect itself as low oil prices push the current account and budget balances of the world’s top crude exporter deep into deficit, senior bankers in Saudi Arabia and the Gulf said. In private conversations with Reuters this week, the bankers – many of whom are in contact with Saudi authorities – said Riyadh may detail a strategy to cope with an era of cheap oil as soon as next month, when the finance ministry presents the 2016 budget plan. The prospect of a riyal devaluation remains farfetched, they said. Political sensitivities and a culture of government secrecy have so far prevented officials from publicly discussing the likely policy options, keeping financial markets guessing about Riyadh’s response to the sustained oil price slump. At $45.71 per barrel, Brent crude is down 20 per cent this year after tumbling from above $115 last year.
Okotoks Town Council faces Chamber of Commerce’s questions kotoks Town Council was under the microscope of local businesses at Wednesday’s Chamber of Commerce luncheon presenting their accomplishments and goals through the first two years since they were elected. Many questions were brought up by the business community; the main points of discussion have been items of business the Town has been working diligently to accomplish, including the ongoing potable water pipeline plan. Chamber CEO Cheryl Actemichuk says having the mayor and council come to their membership helps them better understand the issues and possible roadblocks effecting them. “Not a lot of times do they get to go to council meetings, they’re all busy running their business so I think it’s important that they got to hear what council had to say,” she says. “They are working on some big projects that everybody has been wondering about and they haven’t been completed and it was good for them to know why things take so long.” Mayor Bill Robertson along with with Councillors Tanya Thorn, Ed Sands, Matt Rockley, Carrie Fischer and Ken Heemeryck presented different accomplishments in their time on council this term including the moving of the K-9 school site to 32 Street and the ongoing annexation processes. Actemichuk says it was an eye opener for those in attendance. “As a citizen sometimes what we don’t realize what the actual procedures or steps are to making things happen and even though we’ve been talking about water forever and ever that there is a process and processes are slow,” she says. “Like council said when you’re dealing with so many levels of government sometimes it can take a lot longer than we have hoped.” Actemichuk says whenever the Town comes and presents it is always informative to the Chamber.—CB Report
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Tuesday December 1, 2015
Chambers
LCCI urges fBR to stop attaching business accounts of traders T
LAHORE
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he Lahore Chamber of Commerce and Industry Friday urged the Federal Board of Revenue to stop attaching business accounts in the larger interest of the trade, industry and economy as it should be the last option and not the priority. In a statement issued here, the LCCI president Sheikh Muhammad Arshad urged the Federal Finance Minister Ishaq Dar to immediately stop the FBR from this practice that is pushing the tax payers to the wall besides denting the reputation of a business-friendly government. He said that attachment of the bank accounts should be the last option but the RTOs/LTUs are wasting no time in taking punitive action to meet the revenue targets. He said that the Federal Board of Revenue was constituted to facilitate the businessmen but it is presently doing the other way round through. The LCCI president said that the FBR should focus on controlling under-invoicing and curbing the menace of smuggling besides expanding
tax net but it is playing arm-twisting by instituting cases for recovery of outstanding dues and attaching bank accounts. Sheikh Muhammad Arshad said that it is unfortunate that the FBR is not releasing what it owes to the business community but creating troubles for the businessmen for the
recovery of its outstanding dues just to meet the revenue targets and for the sake of show of performance. The LCCI president said that there should be a level-playing Pield in this regard. He said that if a tax defaulter is liable to penalties and attachment of bank accounts, the same should apply to FBR func-
gatineau chamber’s president resigns
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GATINEAU
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he president of the Gatineau Chamber of Commerce, who publicly suggested the president of Brigil Construction was polarizing the business community with George Bush-like tactics, resigned from his position Friday. In a written statement, Antoine Normand, who has served as president since March 2012, thanked those who supported him over the years and said he was leaving with his head held high. “By resigning, I take all my freedom of speech,” he wrote, adding that he told the members of the board that he would not be their “personal puppet. My integrity, my freedom of expression are worth much more than a job
(as) president. ” He said he was proud of accomplishments such as the 2030 Economic Vision, the Outaouais Common Front and his commitment to higher education. Normand’s resignation stems from comments he made in a Le Droit interview where he said he felt Brigil president Gilles Desjardins was putting too much pressure on the local business community to back his new controversial Place des Peuples project — a $400-million mixed-use condo to be built in front of the Canadian Museum of History. The proposal includes soaring twin glass towers, one as high as 55 storeys. Normand, a software developer, told the Citizen he compared Desjardins’ conduct to George Bush’s infamous phrase he used after the Sept. 11, 2001 attacks: “You are either with us or against us.”
Desjardins did not respond to the Citizen’s request for comment, but was quoted in Le Droit Wednesday as saying Normand’s remark was “a very unfortunate statement, outrageous, and unfounded.” He said the suggestion that he was strong-arming people to back his ambitious project hurt his credibility and goes against the mission of the chamber — which is to support the economic community of Gatineau. Desjardins did not accept Normand’s apology this week and implored the chamber, of which Desjardins is a member, to remove Normand from the business organization for five years or he would take legal action. “Despite the controversy of recent days, I continue to believe in the economic potential of Gatineau,” Normand told the Citizen.
tionaries if they fail to release the valid refunds of the businessmen. Accountability in this regard would force the FBR ofPicials to expedite the payment of refunds. LCCI president also pointed out that it was very unfortunate that if the FBR initiates a case for recovery against any tax payer, he was not given any opportunity to plead his case as the FBR itself is complainant and itself a judge. What justice one can expect of such an institution, the LCCI president said. Meanwhile, The Lahore Electric Supply Company (LESCO) appointed focal persons for the Lahore Chamber of Commerce and Industry to overcome the challenges of new connections, extension of load and over billing. The decision was made by the LESCO Chief Executive OfPicer Qaiser Zaman while speaking at the Lahore Chamber of Commerce and Industry. The LCCI president Sheikh Muhammad Arshad, senior vice president Almas Hyder, former presidents Shahid Hassan Sheikh, Mian Muzaffar Ali and Farooq Iftikhar also spokes on the occasion while executive committee members were present in the meeting.
ICCI for focusing on high tech products to boost exports slamabad Chamber of Commerce and Industry (ICCI) has called upon the government to focus on promoting high tech industry in order to improve trade and exports as the current focus on manufacturing of low value products remained unsuccessful to make Pakistan a worthwhile competitor in international export market. Exchanging views with a delegation of local industrialists, Atif Ikram Sheikh President, Sheikh Pervez Ahmed senior vice Ppesident and Sheikh Abdul Waheed vice president, Islamabad Chamber of Commerce and Industry said that countries like South Korea, Hong Kong and Singapore have focused on high tech products due to which their annual exports have exceeded $570b.—CB Report
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Dubai Customs presents 9 initiatives to ensure customs satisfaction Tuesday December 1, 2015
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DUBAI: With 80 million passengers projected to pass through Dubai International Airport by the end of 2015, Dubai Customs has devised big measures to facilitate seamless airport procedures for passengers by introducing the best innovations, custom officials said on Tuesday. At their first Government Innovation Lab, organised by the Passenger Operations Department of Dubai Customs on Tuesday, over 300 new ideas and initiatives were generated by custom officials, with the help of experts and supply chain partners, to improve the customs experience for air travellers and ensure their happiness. Ahmad Mahboob Musabih, Director of Dubai Customs, said 14.4 million tourists are expected to visit Dubai by end of this year and air freight capacity passing through Dubai expanded to 1.853 million tonnes in the first nine months of 2015.
Taiwan police arrest man with 1,003kg chloroephedrine
authorities in Spain seize tobacco worth €6.64m MADRID
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olice said Friday that they recently nabbed a Taiwanese man for allegedly smuggling more than 1,000 kilograms of chloroephedrine, a substance that can be used to produce amphetamines, from China into Taiwan. The 1,003 kg of chloroephedrine, packaged in 106 bags, could be used to produce 700 kg of amphetamines, worth about NT$200 million (US$6.12 million), the Criminal Investigation Bureau said. The 106 bags were found following a tip-off, hidden among 700 packages of construction materials in a cargo container during an operation at Keelung Customs, said the police. The operation came after months of intelligence-gathering. Following a later search operation, the police arrested a 22-year-
old suspect surnamed Lin, who was taken to prosecutors for further investigation, while the police continued with efforts to search for the ringleader and any other accomplices. After Lin was arrested, he insisted that he had come to
take delivery of the “construction materials” for someone else. However, he was unable to provide details of the origin of the NT$10 million used to pay for the importation of the construction material shipment.
Singapore’s CNB seizes Ireland: Cocaine worth €770k seized 2kg cannabis worth S$66,000 local drug syndicate was busted driver. After their meeting, the teen on Tallaght bypass after Central Narcotics Bureau visited the hideout at Tampines Street ardaí have seized cocaine with an estimated street value of €770,000 on the Tallaght bypass. A 36-year-old man has been arrested after a vehicle was intercepted at around 6.15pm on Friday night. The man remains in custody at Tallaght Garda Station under the provisions of Section 2 of the Criminal Justice (Drug Trafficking) Act 1996. The seizure was part of a wider investigation into drug trafficking in the Dublin area. Meanwhile, Revenue has said that the seizure of 30 tonnes of counterfeit perfume and aftershave is the largest ever seizure of its kind. The fake fragrances were seized in Dublin Port in recent weeks and could have resulted in a loss to the exchequer of almost €2m. —CB Report
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(CNB) ofPicers conducted an operation on Thursday . Cannabis weighing 2kg and worth around S$66,000 was also seized. According to the press release issued on Friday, ofPicers were deployed at Tuas on Thursday to obtain information on a drug syndicate believed to be receiving a fresh consignment of drugs. They observed a 19-year-old drug accomplice meeting with a 48-year-old Malaysian lorry
22, where the ofPicers raided and arrested a 30-year-old Singaporean male. The cannabis was recovered from the rubbish chute at the ground Ploor building, CNB said. The lorry driver was arrested at Woodlands Checkpoint and another suspected drug accomplice, a 21-year-old female Malaysian, was also picked up in the vicinity of the syndicate leader’s hideout, it added.—CB Report
he Guardia Civil, in collaboration with the Treasury Ministry, has seized more than 41 tonnes of tobacco in the largest tobacco seizure in Spanish history. The amount of tobacco is estimated to be enough to Pill four million packets of cigarettes and has a market value of about €6,640,000. Eleven members of the organisation have been arrested. They are being charged with smuggling and tax fraud, with the total amount of fraud adding up to €5,500,000 when taking into account IVA, special taxes and customs laws. The investigation started at the beginning of the year after an increased amount of loose tobacco and roll-up cigarettes was noted in different parts of Jaen. At the same time, the police force began to re-
ceive numerous reports from local tobacco shops and tobacco distribution companies that sales were down about 30 per cent. Increased police presence was established in order to determine if it was the result of smuggling. OfPicers began to carry out checks on establishments in the province in order to ensure that those selling tobacco were authorised to do so. OfPicers carried out nine searches in the towns of Jodar and Linares, where they seized 400 kilos of tobacco, a large quantity of cigarettes, and numerous machines for cutting and rolling tobacco. Afterwards, the Guardia Civil, in collaboration with the Tax Agency of Granada, detected that the supply company of the tobacco and the machines was doing its manufacturing in two industrial areas near Madrid. Upon investigation of these areas, the ofPicers discovered that the supply company was not registered as a manufacturer, importer, or distributor of tobacco, which is required by Spanish law.
Manager jailed for smuggling, possessing marijuana
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manager has been jailed for four years for smuggling and possessing 34 pots containing marijuana seeds that he intended to grow for his personal consumption. Drug enforcement ofPicers raided the Plat of the 39-year-old British manager, F.A., following an informant’s tip off and seized 312gm of marijuana in the form of seeds and a dry grass-like substance in June. The Dubai Court of First Instance convicted F.A. of smuggling and possessing marijuana seeds with the intention of growing them and possess-
ing marijuana for his personal consumption. The Briton pleaded guilty when he appeared in court. “I smuggled those pots with me but not to grow them. And I possessed the marijuana for my personal consumption,” he contended. Presiding judge Ezzat Mansour said the accused will be deported following the completion of his jail term. When asked by the judge about the seeds and the pots and if he had intended to grow them, the accused contended: “I did not intend to grow them. I intended to dry them in order to smoke them.”—CB Report
US Customs to test body cameras to reduce force
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t’s the largest police force in the country with 60,000 employees, and now U.S. Customs and Border Protection is the Pirst to conduct a massive experiment to test the use of body cameras along the United States borders.
Agents have been testing different models of body cameras as part of an initiative to reduce use of force and it’s these cameras that are the most controversial part of a new 18month retraining program ordered by reform Commissioner Gil Kerlikowske. The training program and body cameras were the former Seattle police chief’s response to a series of “use of force” complaints that
came before he took ofPice, from the beating and tazing of Antonio Hernandez Rojas which in this case the U.S. Justice Dept. ruled the agents broke no laws and did not prosecute to the shooting of 16-year-old Jose Rodriguez, who was standing on the Mexican side at the time accused of rock throwing but who witnesses say was an innocent bystander. The Southern Border
Communities Coalition accuses the agency of 40 deaths due to excessive force by the Border Patrol since 2010. In response, the Border Patrol cited a 26 percent reduction in use of force incidents in Fiscal Year 2016. “There are times in law enforcement when some level of force must be used to safeguard the public or protect an ofPicer or agent,” the agency said.
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Guyana: Key T&HD vessels for repairs GEORGETOWN: As part of its mandate to provide quality and safe service to the Guyanese public, the Transport and Harbours Department (T&HD), under the Ministry of Public Infrastructure, is undergoing repair works to motor vessels Kimbia and Sandaka.In a release the Ministry of Public Infrastructure said both MV Kimbia and MV Sandaka were docked yesterday, November 25, 2015, at the Guyana National Industrial Corporation (GNIC) and T&HD’s Mazaruni dockyard, respectively. With regard to MV Kimbia, the vessel’s estimated cost of repairs is pegged at $107M. The vessel, which plies the Georgetown to Kumaka, Region 1 route, is set to undergo general docking and rehabilitation works to its hull, on-board machinery.
Port operations absolutely normal in Venezuela: PDVSa tate oil company of Venezuela Petroleos de Venezuela SA (PDVSA) said that it guarantees that all operations performed in its docks and terminals, including crude oil export, cabotage maneuvers and purchase of inputs for oil production were normal. According to PDVSA’s Vice President of Refining, Trade and Supply of the national oil company, Jesus Luongo, said that the company guarantees “absolute normality of operations” and that the payment is being carried out via open account, credit cards and pre-payment “in agreement with our suppliers.” The announcement comes on the back of media reports saying that shipowners and oil providers were refusing to unload cargo until they received prepayment from PDVSA resulting in tanker queues off Venezuela. Over a dozen oil tankers were reported to had been queuing at Venezuelan ports pending payment before they unload, Reuters reported.—CB Report
Ports & Shipping
workers at haifa Port imposed wildcat industrial sanctions
businessman has sued to stop the procurement of cranes to be used at the Mombasa port. Filed under a certificate of urgency, the petition seeks to challenge the Sh3 billion tender for the supply and commissioning of three ships-to-shore gantry cranes. Maur Abdalla says the winning bidder has violated tender requirements and the cranes might be of inferior quality, ripping the public out of millions of shillings. Abdalla says Liebherr Container Cranes has deviated from all the conditions contained in the tender specification and contract. He says instead, the supplier is now about to instal substitute cranes of inferior type.—CB Report
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Shipment delays follow shooting down of Russian warplane xports of grain are leaving Russia’s Azov Sea for Turkey again after suffering delays in the wake of Turkey’s shooting-down of a Russian warplane, but some traders remain nervy about striking new deals, according to industry sources. The continuation of shipments highlights the countries’ mutual dependence in international trade. Turkey vies with Egypt to be the largest importer of Russian wheat, while Russia’s boycott of some EU products has left it reliant on imports of fruit and vegetables from Turkey. Gregory Souris, director of Actava Trading DMCC, a Dubai-based brokerage, said Actava finalized customs documents on Thursday for multiple ships waiting to take grain to Turkey from the port of Yeysk on the Azov Sea. The vessels hadn’t been granted papers earlier this week, he said, adding that the holdups only applied to ships bound for Turkey. “It seems to be they are now clearing the vessels,” he said. Erol Yahya, Executive Director of Turkish milling group Intermil-Un, said a 3,000 ton vessel carrying wheat for the company left the Azov Sea Thursday after being delayed in the wake of the destruction of the Russian jet on Tuesday. Still, the situation remains uncertain with tensions between the countries running high. —CB Report
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Trader sues to block cranes for Mombasa port
Tuesday December 1, 2015
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orkers at Haifa Port imposed wildcat industrial sanctions today in the course of unloading the Gunvor Maersk, which is at the port as part of the strategic line of the M2 shipping consortium of the world’s two largest shipping companies, Maersk and MSC. Work on the ship by the A shift this morning has been proceeding at just 50% of normal output. The wild-
cat action comes just a week after the president of the Haifa Labor Court absolutely prohibited sanctions at Haifa Port in a hearing on a work dispute declared by the Histadrut (General Federation of Labor in Israel), and ordered the workers to maintain full and normal work until they obtained a different ruling, if any. The Histadrut was surprised by the port workers’ sanctions, and the cause is still unclear. Last weekend, the chairman of the Haifa Port workers’ committee Meir Turgeman threatened that he intended to disrupt work at the port despite the court president’s ruling. Haifa Port management im-
mediately petitioned the court today for a ruling that the workers were in contempt of court and should immediately return to work. Haifa Port spokesperson Zohar Rom: “We turned to the court to restore work to normal immediately. This is a shipping route of strategic importance to the State of Israel’s economy, a vote of conPidence by European shipping giants at a time when our economy is not in favor on the European continent, and we are committed to providing nothing less than superb service. Unless we meet these standards, this line will simply no longer come to Israel. We won’t let this happen.”
Uljanik to start building algoma’s Bulker Trio
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roatian shipbuilder has started the preliminary construction work on Algoma Central Corporation’s (Algoma) three, 740 foot Seaway Max self-unloading bulk freighters, as the shipyard has been ofPicially cleared to implement the project. “Under the terms of the conditional contracts announced by Algoma on September 10, 2015, Uljanik d.d. was re-
quired to delivery security for the contractually required construction instalments that is acceptable to Algoma. This security was delivered by the yard and approved by Algoma on November 24, 2015,” Algoma said in a release. “The design work and preliminary construction of the vessels has already begun,” said Ken Bloch Soerensen, President and CEO of Algoma. “We now have a total of Pive ships under construction at the Uljanik Group’s 3Maj shipyard in Rijeka, Croatia and we look forward to working closely
with Uljanik on the construction of these vessels,” Soerensen continued. These new Equinox Class ships will feature a boom-forward conPiguration designed to provide greater Plexibility in certain delivery situations. The vessels will have an overall length of 225.55 metres and a beam of 23.77 metres, qualifying as Seaway Max size ships. The vessels will carry 29,300 tonnes at maximum Seaway draft. The first vessel is scheduled for delivery in early 2018 with the balance of the
ships delivered by the end of that year. Algoma reported third quarter revenues of $133,831 compared to $163,950 for the same period in 2014. The decrease in revenue was mainly in the domestic dry-bulk and product tankers segments reflecting the impact of lower fuel prices and reduced customer shipments. Revenues for the nine months ended September 30, 2015 of $318,268 were $35,753 or 10% lower than the revenues for the same period in the prior year.
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Customs seizes 420 drums of Iranian diesel worth Rs 10m KARACHI: Custom Intelligence has seized a truck loaded with 420 drums carrying 18,000 litres Iranian diesel worth Rs 10 million, it has learnt here. According to details, on the directions of Director Intelligence Margoob Siddiqui, a team headed by Deputy Superintendent Hajji Aslam, Inspector Parwez Ahmed Zardari, Intelligence Officer Muhammad Aqmal Hashmi, and Khuram Saeed has conducted a raid on national highway and intercepted a truck loaded with 420 drums of Iranian diesel carrying 1,8000 litres.
Tuesday, December 1, 2015
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Multan Customs collects Rs 54b from tax defaulters: haroon Tareen MULTAN SaJID BaShIR
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he government has been taking the key steps to bring the tax worthy people in the tax net and Pirst time in the history of Pakistan the criminal cases have been registered against those who are involved in tax enbezzlement as well as concealing their real income.The Customs Intelligence and Investigation (I&I) untill has collected Rs.54 billion in the heads of different taxes from the inPluentials with the help of mere manpower of 22 ofPicers. It has been said by the Director General Intelligence and Investigation Inland Revenue Haroon Khan Tareen while talking to the local media here. He said that the department has also detected the misuse of the tax relaxation for the ghee industry under ordinance 65(D) particularly of Khyber Pakhtunkhwa. The industrialists and inPluentials are operating businesses and bank accounts under the cover of their employees to save themselves from payable taxes and duties but we are striving for to bring the ghee, cigarette, computer,laptop and fashion
industries in the tax net beside this the surveillance of the owners of real estate and luxurious vehicles as
well as the people who frequently travel abroad is in process. He highlighted that the tax worth
Rs 670 million has been recoverd from an airconditioner importing Pirm and even on the reports of Cus-
toms Inland Revenue commissioner ranked ofPicials have been chargesheet.
Customs adjudication orders to seize 2,450kg black tea FAISALABAD
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ustoms Adjudication Faisalabad Deputy Collector Asma Hameed has issued an Order-in-Original (ONO) in favour of Faisalabad Anti-Smuggling Organization (ASO), declaring the conPiscation of black tea lawful. The ASO had seized 2,450 kilogram of tea from a warehouse in Faisalabad under Section 2(KK)
read with 186(1) of Customs Act 1969 and nominated Muhammad Naeem and Adil Javaid in the case. After conPiscating, the accused person were issued notices to appear before the adjudication. Inspector Masood Saeed Chohan represented the ASO and produced evidence before the court, while the respondent Muhammad Naeem appeared before the court and pleaded the court to release the tea after the payment of duty/taxes. Deputy Collector Asma Hameed reviewed all the stated facts of the case and ordered to conPiscated
the black tea under Section 156(1)89 of the Customs Act, 1969, besides offering an option to accused of getting release tea after the payment of redemption Pine that is equivalent to the 20 percent of the actual value of seized item. Meanwhile, Customs Adjudication Collector Raja Tahir Majeed recovered Rs 25 million by deciding four cases as he issued Order-in-Original in all cases in favour of Faisalabad Customs Intelligence and Investigation and Model Customs Collectorate. The department heard the cases of smuggled cloth, chemical
and rubber thread and other items during the hearing period. According to the details, the customs adjudication decided a case of Ahsan Traders detected by Customs Intelligence involving duty/taxes amounting to Rs 4.34 million and a case of M/s Kamal Hosiery involving duty/taxes of Rs 14.098 million. It also decided a case of M/s Kamal Textile Mills involving Rs 3.81 million, while the case was detected by Model Customs Collectorate. Meanwhile, the collector settled a case of M/s Sweety Textile detected by Faisalabad Customs involving Rs 3.25
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million. Customs Adjudication Collector Raja Tahir Majeed has ordered to impound a truck as the suspect failed to provide evidence regarding the payment of duty/taxes. As per details, Faisalabad Customs Intelligence and Investigation had impounded a Hino Ranger Truck bearing Registration No. SBA-135 under the Import and Export Control Act 1950 punishable under Section 156(1)89 and 178 of the Custom Act, 1969 as the accused person, Muhammad Arshad, failed to produce any documents showing legal import of the vehicle.