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PakISTaN’S fIRST INDEPTh NEwSPaPER ON CUSTOMS

Daily

Vol 1 Issue No. 252

Karachi, Wed December 2, 2015

ISLAMABAD

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he Federal Board of Revenue (FBR) has made a net collection of more than Rs 229 billion during November 2015 against net collection of Rs 180 billion made during corresponding period of last year, 2014, showing an increase of 27 percent.

As per provisional Rigures, the target for the month has therefore been achieved. In its statement FBR said that it is expected that the collection would further

Price Rs. 14.00

increase when the Rinal Rigures are received. The revenue collection trend during November 2015 further reinforces, consolidates and even surpasses the marked improvement shown in the Rirst month of the second quarter of the current year over the trend in the Rirst quarter of the current Rinancial year and augurs well for the efforts of FBR towards achievement of the assigned revenue targets. However, from July, 2015 to November, 2015, FBR made a net collection of more than Rs 1,044 billion as against net collection of Rs 904 billion made last year resulting in an increase of 15 percent.

Hyderabad ASO seizes smuggled LEDs, DVDs, gutka, cigarettes

FBR detects tax evasion of Rs 57billion in one year

Ministry told to bring down prices of essential items

FBR directs to conduct audit of 5535 industrial units

Govt to overcome energy crisis soon: Governor Punjab

ASO Hyderabad seized smuggled LEDs, DVDs, gutka and 12 cartons of cigarettes | SEE PagE 02 |

DG Customs Intelligence (I&I) SalesTax and IncomeTax, Haroon Khalid said the govet | SEE PagE 03 |

Ishaq Dar on Monday directed Ministry of National Food Security and Research | SEE PagE 04 |

FBR has issued the orders of special audit of as many as 5535 industrial units | SEE PagE 12 |

Governor Rafique has said that the govt would overcome the energy crisis | SEE PagE 09 |

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FBR asks govt to include names of tax defaulters in Exit Control List Wednesday, December 2, 2015

National

KARACHI: Federal Board of Revenue (FBR) asked Ministry of Interior to include names of tax defaulters of Rs 50 million in Exit Control List. Sources of Regional Tax Office told Customs Today, that Ministry of Interior clarified recently that names of those persons will be included in Exit Control List who are involved in treason, corruption and embezzlement.

Ministry of Interior further announced that names of those persons will also be included in Exit Control List who are tax defaulters of Rs 50 million and above. Sources of Regional Tax Office also told this scribe that lists of defaulters are almost finalized in this regard and the same will be forwarded to authorities concerned very soon.

hyderabad aSO seizes smuggled LEDs, DVDs, gutka, cigarettes

LAHORE

HYDERABAD

M haYaT

aSLaM aNJUM QUREShI

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he government should safeguard the domestic industry and save the jobs and exports of local yarns and fabrics producing textile mills by imposing regulatory duty on the import of yarns and fabrics immediately.

The All Pakistan Textile Mills Association (APTMA) acting Chairman Shahid Mazhar has said that the surge in import of man-made fibres (MMF) yarns including polyester, acrylic and fabrics in the domestic commerce was badly hurting the local textile industry.

He said the competitors of Pakistan textile industry in Far East, China and India are producing MMF yarns and fabrics at comparatively lower energy cost.

“On the other hand, the textile industry in Pakistan is facing highest energy cost in the region,” he asserted. He said that the import of yarns has surged to 72,300 tons in 2014-15 against 47,700 tons in 2012-13. Similarly, the import of fabric made from MMF yarns has also reached to 562,000 square meters in 201415 against 180,000 square meters in 2012-13.

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SO Hyderabad seized smuggled LEDs, DVDs, gutka and 12 cartons of cigarettes worth Rs 1.6 million during different raids in Hyderabad.

Sources told Customs Today that Collector model customs collectorate Hyderabad Dr. Ahmed Mujtaba Memon received credible information about smuggling of electronic items. After receiving the tip off, he immediately formed a raiding party under the supervision of Additional Collector Umer ShaRique.

The team intercepted a vehicle owned by M/ Haji Azam Goods Transport Company Lahore and recovered foreign origin electronic items including six LEDs whose market value is Rs300,000. These goods were being transported from Lahore to Hyderabad. While during the second raid ASO team intercepted a bus near Hala Naka and recovered contraband items including 70 kilograms of gutka whose market value is Rs700,000. These smuggled contraband items were being smuggled from Quetta to Hyderabad.

During another raid, ASO team raided Bolan Mail in Kotri Station and seized 12 cartons of foreign origin Royal cigarettes which were allegedly being smuggled from Quetta to Kotri Hyderabad. The market

govt urged to impose regulatory duty on import of yarns, fabrics

value of seized items is worth Rs600,000. The ASO team asked the driver of the vehicle to produce legal documents regarding import and possession of goods but he failed to provide any documents in this regard on which customs seized the items under prevailing customs law.

Meanwhile, The Customs Anti-

Smuggling Organisation (ASO) seized illegally imported goods worth Rs 145 million in October, 2015 in different operations, which were conducted in Larkana, Sukkar and Hyderabad. On the direction of the Model Customs Collectorate Hyderabad Dr. Ahmed Mujtaba Memon, ASO team conducted successful operation in Hyderabad

against smuggling under the supervision of Additional Collector Umar ShaRique. However, the Sukkar ASO under the supervision of Assistant Collector Samiullah, and Larkana ASO under the supervision of Assistant Collector Zam Zam Aman raided different areas to hold smuggled items in their regions concerned.

Court issues 3-day physical remand in Rs 4.5m smuggling case LAHORE

M IMRaN MEhaR

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he Special Federal Court of Customs taxation and Anti Smuggling has issued three days physical remand of the accused in smuggling of Biaxially Oriented Polypropylene (BOPP) Rilm from Afghanistan to Faisalabad.

According to details available to Customs today a person, who was identiRied as Mubarak Sheikh arrested by the Customs authorities of Faisalabad.He was caught red handed by the customs intelligence when he was trying to smuggle BOPP Rilm in Faisalabad.

As per details, an accused Mubarak Sheikh son of Shamas ul Qamar was involved in smuggling of BOPP Rilm. Customs Faisalabad on intelligence information raided at his warehouse and recovered two trucks

loaded with smuggled items. Warehouse was also owned by Mubarak

Sheikh.Customs auhtoirties asked him to show legal evidences of the

BOPP Rilm but he failed to produce the same. Customs authorities arrested him on the spot and registered a case against him under section 2 (2), 16, 18, 132 A, 156 89 and 178 of Customs Act of Pakistan 1969. FIR number 2/2015 has registered against the accused. Worth of the smuggled material is Rs 4.5 million in national market. Now the special court of Chaudary Ameer Muhammad Khan has sent accused in custody of Customs Faisalabad for physical remand for further investigation.

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Rawalpindi Excise capturing offender vehicles RAWAPLPINDI: The Excise and Taxation Department has started general holdup against the token tax defaulters and unregistered vehicles in three districts. According to the details, the excise conducted operation in Jehlam, Chakwal and Attock. While the department has decided to delay the operation against the token tax defaulters and unregistered vehicles in Rawalpindi districts till December 5 due to the upcoming local bodies election. Excise and Taxation Rawalpindi Director Tanveer Abbas Gondal has said that three teams are taking part in the general holdup in the three districts to collect outstanding dues from defaulter and capture the offender vehicles.

IhC issues notice to wilson’s Pharmaceutical in tax case

Wednesday December 2, 2015

National

fBR detects tax evasion of Rs 57 billion in a year

ISLAMABAD

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slamabad High Court (IHC) on Monday issued notices in a case filed by officers of Regional Tax Office (RTO).

IHC division bench comprising of Justice Shaukat Azizi Siddiqui and Justice Athar Minallah heard the cases filed by commissioner income tax and issued notice to Wilson’s Pharmaceutical and a citizen, Farooq Ahmed Sheikh. The bench had issued the notices to respondents in both cases seeking their presence before the bench. After issuing the notices, the bench adjourned hearing directing the court admin office to set other further dates for hearings.

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Customs Court adjourns three cases until Jan 4 KARACHI

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he Special Court of Customs Taxation and Anti-Smuggling put off the hearing of three cases till January 04, pertaining to fraudulent import of pharmaceutical raw material that caused millions of rupees loss to the national exchequer. Judge Syed Faiz Rasool Rashdi adjourned the case due to absence of the counsel for the accused. According to the details of the case, Muhammad Ali Chandna of Pure Enterprises and his other accomplices have been booked for importing pharmaceutical raw material from China and India by mis-declaring the description of the goods. Pakistan Customs had unearthed the scam last year in which it found that Chandna, Ziauddin of Chemi Zone and Rajab Ali of M/s Rajab had fraudulently imported pharmaceutical raw material by declaring them.

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LAHORE

M haYaT

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irector General Customs Intelligence and Investigations (I&I) Sales Tax and Income Tax, Haroon Khalid said the government had started tightening noose around tax evaders and over Rs 57 billion tax theft, evasion was detected by his department during last one year.

Talking to Customs Today Haroon said that the payment of tax is a national obligation and government has started legal proceedings against those who evade it.

He added that ofRices of their department are functioning in seven cities including Peshawar, Islamabad, Faisalabad, Lahore, Multan, Hyderabad and Karachi and only 22 ofRicers deputed at these stations who detected the tax evasion cases in a year. He said the government had started getting FIRs registered against these tax evaders.

Haroon Khalid said the government was also taking action against tax ofRicials who were found to be involved in extending undue favours to tax evaders for Rinancial gains.

The director general further said that his department was proceeding against the tax evaders and thieves without tolerating any pressure. He said the department also detected Rs 270 million tax fraud by a Karachi-based cement factory that was involved in selling cement

worth Rs 46 million daily through accounts of their employees.

Meanwhile, Directorate of Customs Investigation and Intelligence Lahore has presented before media above Rs 57 million illegally imported Samsung smart mobile phone and accessories. OfRicial sources told Customs Today that on information that a group has stored millions of rupees smuggled mobiles and accessories illegally in a house, director Saud Imran formed

The department also detected Rs 270 million tax fraud by a karachi-based cement factory that was involved in selling cement worth Rs 46m daily through accounts of their employees.

fBR wants quick examination of containers KARACHI

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ederal Board of Revenue (FBR) after receiving complaints from importers directed the departments concerned to speed up the process of containers examination.

Sources of Pakistan International

Terminal Containers told Customs Today that FBR directed to all departments concerned to complete 80 percent examination of containers on the day of their grounding.

Sources further said that after re-

ceiving such instructions from FBR, authorities are completing almost 60% of examination process on the same day, but they are still failed to complete 40% examination.

While on the other hand, one importer after hailing this step of FBR told this scribe that we have written many letters to FBR authorities asking them to direct the department concerned to speed up process of containers examination, and now we are getting positive result of our request.

a team consisting superintendents, Nasir Minhas, Rauf Farooqi and RaRique Bhatti and inspectors led by Additional Director Rizwan Slabat.

The team raided the house in Cantt area following getting search warrants from the court and recovered 1763 smart mobile phone of Samsung S5, Samsung S3, LG and Motrola while on the same warrants the team also raided a gowdown at Regal Chowk and recovered 1850 smart phone.

Multan Customs seizes non-duty paid car he Customs Intelligence and Investigation Multan region has seized a non-customs paid car worth Rs 1.3 million during a successful operation. As per details, Sadiqabad unit of Multan region intercepted the car as the Additional Director Nisar Ahmad formed a team to seize the nonduty paid car on a tip-off.

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PEsCo annual deficit reduced to Rs 16b from Rs 34b Wednesday, December 2, 2015

Business

PESHAWAR: The Pakistan Eclectic Supply Company’s (Pesco) annual deficit has reduced by Rs16 billion in fiscal year 2014-15 from the previous year’s Rs34 billion.

The line losses have been reduced by 2 per cent and recovery increased by 2 per cent for year 2015-16. This was revealed in the Pesco Board of Director’s 102nd meeting held, under the chairmanship of BoD Chairman Malik Muhammad Asad Khan at Wapda House Peshawar. Company Secretary Yasar Naseem presented Minutes of 101st BOD meeting which were approved after detailed discussion.

The meeting discussed the measures taken to make Pesco a profitable entity.

kSE sees another rollercoaster day, 100-index sheds massive 546pts KARACHI

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itnessing another rollercoaster day, the Karachi Stock Exchange lost the early gains as KSE-100 index went down 1.69 per cent, by shedding mammoth 545.84 points to reach 31709.36 level at closing on Tuesday. The market recorded the highest trading level of 32464.52 points and lowest level of 31666.11 points,

S arabia to cut Jan crude prices to asia SINGAPORE

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with the volume of 110,316,180 shares, having Rs6,443,751,107 value. As many as 352 companies were active; of which 46 advanced,

Ministry told to bring down prices of essential items

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op oil exporter Saudi Arabia is expected to reduce prices for its crude sold to Asia in January from a month ago after the Dubai benchmark weakened, trade sources said on Tuesday. The forecast price cuts ahead of the Organization of the Petroleum Exporting Countries (Opec) meeting on Friday follow a drop in Dubai crude benchmark in November to the lowest in close to seven years in an oversupplied market as producers ramp up output in a global market share fight.

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293 declined and 13 remained unchanged. Commercial banks remained the highest traded sector with total volume of 23,827,700

shares, while the Cement remained second traded sector with a total volume of 22,137,800 shares. Despite losing share value, the three top traded companies were Pak Elektron with a volume of 14,810,000 and price per share of 60.43 (-3.17), KElectric Ltd with a volume 13,598,000 of price per share of 7.15 (0.00), Pace (Pak) Ltd with a volume 12,810,500 of price per share of 7.00 (-0.38). The top three advancers were Service Ind.LtdXD with price per share 865 (15), Colgate PalmoXD with price per share of 1475 (15) and AKD CapitalXD with price per share of 196.93 (9.37).

ISLAMABAD

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inance Minister Ishaq Dar on Monday directed Ministry of National Food Security and Research to analyse and monitor the export of potatoes to ensure that domestic prices are not affected. He was chairing a meeting of National Price Monitoring Committee here to review the change of price of essential items

in the country. The meeting observed that the prices of wheat, wheat Rlour, chicken, eggs, bananas, potatoes, tomatoes, rice, cooking oil, vegetable gee decreased as compared to last year while the prices of milk powder, onion, red chilies, garlic, beef, mutton and pulses increased. The Committee also noted increasing trend in some products such as pulses (moong, mash, and masoor) and garlic and directed Ministry of National Food Security and Research to closely monitor the prices of these items and take measure to bring them down. Ishaq Dar observed that the prices of the

most of the essential items like rice basmati broken, rice irri, mutton, mustard oil, banana, masoor pulse, gram pulse, potatoes, tomatoes and garlic are very high in Islamabad as compared to the provinces. He directed Islamabad Capital Administration to take appropriate administrative measures to check and control the price disparity with the neighbouring regions. The Minister expressed concern over the delay in import of gram pulse

by Trading Corporation of Pakistan (TCP) and Ministry of Commerce to expedite the process to arrest the price increase of the product.

australia keen to work with Pak private sector KARACHI

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igh Commissioner of Australia Ms. Margaret Adamson has said Australia was keen to engage the private sectors of Pakistan that drives the economy and creates jobs. “We want to work closely with the private sector of Pakistan and we want to make sure we are in touch with the private sector”, she added while exchanging views during her visit to Karachi Chamber of Commerce & Industry (KCCI). Margaret Adamson was accompanied by Honorary Consul General Farrukh Ikram, Senior Trade & Investment Counselor Ms. Nickola Watkinson, Trade Commissioner Grayson Perry and others. President KCCI Younus Muhammad Bashir and other office bearers and Managing Committee members were also present at the meeting.Commenting on trade and investment ties between Pakistan and Australia, Margaret Adamson said, “Although some magnificent things are happening between the two countries which reflect the strength of our bilateral relationship and our common heritage but we still have got a bit of work to do.

“There is a great potential to build trade and investment relationship between Pakistan and Australia.

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Ministry asks fBR to declare Sust as transit border LAHORE

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he Federal Board of Revenue (FBR) was directed to declare Sust as transit border and synchronize it all ports with Weboc System. The direction was issued by the Ministry of Communications on the pointation of the Lahore Chamber of Commerce & Industry.

According to OfRice Memoran-

dum of Ministry of Communications to the Federal Board of Revenue, the Board was asked to take necessary action for declaring Sust as transit border and all the clearance procedures at Sust and at other Ports may also be synchronized with Weboc System, if not done earlier.

As per LCCI letter written by its President Sheikh Muhammad Arshad, Pakistan made Quadrilateral agreement with China, Kazakhstan and Kyrgyzstan to facilitate trade

and transport through its territory between Sust border and Karachi port, which is operational since 2004. A little Pakistani import and export cargoes are moving to/from Kazakhstan and Kyrgyzstan on Chinese trucks whereas Pakistani transport vehicles are not moving cargoes to Kazakhstan and Kyrgyzstan via China at all. Moreover, Kazakh, Kirghiz and Chinese goods are neither transiting through Pakistani ports nor any participating

country’s vehicles transport transit goods due to the absence of regulatory framework. Till now, no Statutory Regulator Order (SRO) is issued to declare Sust as transit border by Customs Department to implement the quadrilateral agreement. Now the working on CPEC has also started and transporters are going to face similar problem at Gwadar and Kashgar. We are of the view that Sust should be declared a transit border for movement of goods un-

der said agreement which will help to enhance trade activities between Pakistan, China, Kazakhstan and Kirghizstan. Sheikh Muhammad Arshad said that Pakistan has already ratiRied UN Convention on the International Transport of Goods (TIR) to facilitate border trade and it has also ratiRied WTO’s trade facilitation agreement (TFA), which contains provision for expediting the movement, release and clearance of goods, including goods in transit.

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Wednesday, December 2, 2015

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ederal Board of Revenue (FBR) Chairman Nisar Muhammad Khan said that project “Integrated Transit Trade Management System” (ITTMS) was on track and most of the milestones had been achieved as per the timelines.

He stated this while brieRing the Steering Committee on ITTMS about latest developments in the project vis-à-vis the decisions taken during previous meetings.

The sixth meeting of the committee was held on Monday. The meeting was chaired Finance, Revenues and Statistics Minister Ishaq Dar. FBR and Asian Development Bank (ADB) had agreed on the detailed modalities of the project and loan negotiations had been concluded with the Bank.

The Board of Directors of the Bank will consider the project within a week’s time.

The meeting was informed of the progress of land acquisition at Torkham, Chaman and Wahga for construction of border trade complexes. The steering committee desired to fast track the process of land acquisition, through consultation with all stakeholders, in a transparent manner.

The steering committee also endorsed selection of Dr. Muhammad Zubair, a BS-20 ofRicer of Pakistan Customs Service as “project director for ITTMS Project”, through competitive process, by a four member committee. Meanwhile, The 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 subdepartments for the provision of vehicles record, export of software and IT services record and others in this case, a wellplaced ofRicial 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 agencies are still waiting for reply from the FBR and its departments regarding provision of demanded record. Interim Challan u/s 173 Cr.PC to the extent of 21 accused persons was submitted in the trial court on 16-7 2015. Earlier, the interim charge sheet of the case was submitted in the court, on 13-6-2015, against thirteen accused persons and supplementary interim charge sheet of the case was submitted on 27-62015 after arresting four more accused persons and one absconding person.

Bank accounts of alleged company, its CEO and other accomplices have been frozen under the provision of section 8 of AML Act 2010, with the permission of the Court of District and Sessions Judge, South, Karachi.

Under section 9 of Anti Money Laundering Act, 2010, show cause notices have also been issued to the accused persons requiring them to provide the justiRication of transactions made in and out of their accounts. The reply is awaited. Bail applications Riled by accused persons whose bails were rejected by the Court of District and Session Judge South (Trial Court) Karachi, are subjudice in the Sindh High Court.

pment o l e v e D asian the fBR and had agreed on e DB) Bank (a modalities of th s n d detaile oan negotiatio the and l project oncluded with f nc rs o had bee oard of Directo eB he Bank. Th will consider t . k e the Ban in a week’s tim h wit project

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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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Russia cuts trade ties with Turkey MOSCOW: A technician inspects an orange in plant quarantine center, imported from Turkey according to representatives of the center, in the settlement of Bykovo, Moscow region, Russia.

Russia’s decision to spite Turkey for downing a Russian jet by cutting trade ties and tightening customs controls for Turkish goods reinforces Moscow’s image as an unreliable trade partner Russia took a step to assure its trade partners by joining the World Trade Organization (WTO) in 2012. As a member of the WTO, Russia has rules to obey; however, the country continues to find alternative ways to become the most unreliable trade partner of the world. Since the Russian Su-24 fighter was downed by Turkey for violating its airspace on Tuesday, reports and complaints regarding Russia’s implementation of non-reciprocal practices in trade ties and customs control have rapidly surfaced.

Pakistan, azerbaijan exhibition forum to be held in april 2016 mbassador of Azerbaijan Dashgin Shikarov has invited the Pakistani businessmen to participate in the exhibition and forum being planned for April 2016 in Azerbaijan and Pakistan. He was talking to Chamber of Commerce & Industry (LCCI) President Sheikh Muhammad Arshad. The LCCI Executive Committee Members were also present on

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the occasion. The Ambassador said that proposed exhibition and forum will provide Pakistani entrepreneurs an opportunity to establish close contacts with their counterparts in Azerbaijan. He said that Azerbaijan is keen to strengthen trade & economic ties with Pakistan. He said that joint efforts from the business community of both sides can help tap huge potential exist in both countries. He said that bilateral trade between the two countries could be flourished through exchange of trade delegations and holding of single country exhibitions. Speaking on the occasion, the LCCI President Sheikh Muhammad Arshad said that both Pakistan and Azerbaijan have good diplomatic relations and enjoy strong bonds of Islamic brotherhood but these ties are hardly reflected in two way trade. He said that in 2013, the value of total exports of Pakistan to Azerbaijan was dollar 49.7 million which shrunk to dollar 27.7 million in 2014. The LCCI President said that it was very unfortunate Pakistan does not figure prominently among the trading partners of Azerbaijan.

He said that the main reason of such a low level of trade is lack of proper information about each other’s markets.—CB Report

Wednesday December 2, 2015

Chambers

govt to overcome energy crisis soon: Punjab governor G

LAHORE

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overnor Malik Muhammad RaRique Rajwana has said that the government would overcome the energy crisis in the country and with the newly-initiated projects loadshedding would end soon. RaRique Rajwana said this while talking to a delegation of UBG led by its chairman Iftikhar Ali Malik. President FPCCI Mian Idrees, Senator Ilyas Bilour, FPCCI presidential candidate Abdul Rauf Alam, SM Naseer, Malik Sohail and others were present on the occasion.

The governor said that the government will resolve the problems of the business community soon, saying that the vibrant private sector of Pakistan will be given all the facilities as its importance cannot be undermined. He said that he is personally against ‘harassing’ the business community and that role of tax collectors should be minimised.

He also lauded the UBG for its democratic culture and offered all out support to UBG. UBG Chairman Iftikhar Ali Malik said that we cannot compete with re-

gional countries unless business community is provided equal opportunities to capture the world market. He said that it is good sign that government has achieved a lot during last

two years. Pakistan was heading towards a bright future, he said, saying that further efforts are needed to achieve the goal of high growth. He said that government along with Pak

ICCI asks govt for sufficient cut in POL prices

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ISLAMABAD

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he Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to make sufRicient cut in Petroleum products prices to pass on the full beneRit of reduced oil prices in international market to the business community and the common man.

Atif Ikram Sheikh, president, Islamabad Chamber of Commerce and Industry said that crude oil price in international market has come down to $41.71/barrel and government should make proportionate cut in domestic prices of POL products to provide relief to the general public. He said Pakistan’s heavy reliance on furnace oil for power generation has made power tariffs in Pakistan for indus-

try and consumers one of the highest in the region and it was right time that government should make decent reduction in petroleum prices that will bring down manufacturing cost, facilitate better growth of business activities and ease lot of pressure on the common man. He said government has imposed heavy taxes on POL products due to which cost of doing business in the country has gone up manifold and people were also facing many problems. He said government has been increasing tax rates on oil products since January 2015 to deprive the domestic consumers of the full beneRit of a nosedive in oil prices in international market. He said it increased sales tax on all petroleum products from 17 percent to 22 percent in January and then to 27 percent in February. It further hiked GST rate on all manor petroleum products ranging from over

25 percent to 45 percent in September 2015.

Atif Ikram Sheikh said it was unfortunate that government has made petroleum products an important source of sale tax collection as it was collecting about 45 percent of total sales tax from these products. However, this unwise approach has caused exorbitant hike in production cost putting highly negative impact on the growth of industrial activities and exports.

Sheikh Pervez Ahmed senior vice president and Sheikh Abdul Waheed Vice President, Islamabad Chamber of Commerce and Industry said that apart from heavy GST, people were paying petroleum levy from Rs.6 to Rs.14 per litre, which was highly unjustiRied. They demanded that government should reduce GST and other taxes on POL products to create a conducive environment for business activities.

Army is successfully Righting the challenge of extremism and terrorism and the same Right is required to resolve the chronic energy crisis issue.

UBG chairman said that difRicult decisions on vital national matters were now required in consultation with the businessmen, adding that huge investment should be attracted in the energy sector.The meeting was also attended by representatives of dozens of chambers and trade associations from all across the country.

Meanwhile, The 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.

Textile exporters ask govt to ensure 25% gas supply to industry he textile exporters have flayed the government decision of decrease in gas supply quota the industry in winter The Pakistan Textile Exporters Association asked the government to ensure at least 25 per cent gas supply to textile export sector in winter under the quota regime. In a joint statement, PTEA chairman Asghar Ali and vice chairman Arif Mahmood Qureshi said that gas supply to the textile sector never dropped from 20pc in the past. Reduction in gas supply would cut down drastically manufacturing of export goods and exporters would not be able to fulfil their commitments to foreign buyers. Asghar Ali was of the view that of the $13 billion plus textile exports, Punjab has $6bn share which is on the decline.

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saudi Customs discovers alcohol concealed in car engine Wednesday December 2, 2015

World

RIYADH: Saudi customs officers at the King Fahd Causeway foiled an elusive attempt at smuggling alcohol in the engine of a car of one of the commuters returning to the kingdom. Customs officers published a video clip in which officers unveiled the pipes that extend from the inside of the section leading to the fuel tank.

Meanwhile, Saudi Arabia is considering lifting partial export bans on cement and steel to relieve oversupply in the local market, economic news website al-Eqtisadiah quoted a customs department official as saying on Sunday. Saudi government bodies are studying whether to ease restrictions on cement and steel exports after local production doubled, exceeding the storage capacity of the kingdom’s largest companies, customs department spokesman Essa al-Essa told Eqtisadiah without giving any timeframe for the decision.

US Customs intercepts beet flea beetle in shipment in Baltimore

BALTIMORE

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US Department of Agriculture (USDA) entomologist confirmed Wednesday that

kuwait police arrest convicted drug smuggler man, who had been wanted for a four-year prison verdict for abusing and trading in drugs, was arrested in a workshop in Jahra industrial area, said security sources, noting that the suspect tried to escape but was controlled and referred to relevant authorities.

Meanwhile, The interior ministry’s assistant undersecretary for criminal security affairs Maj Gen Abdul Hameed Al-Awadhi said narcotics detectives arrested an Arab truck driver arriving from Iraq with around 200 kg of hashish and 200,000 narcotic pills. Initial investigations showed that narcotics detectives had been tipped off over a man with a drug-related record planning to smuggle the drugs into Kuwait. —CB Report

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U.S. Customs and Border Protection (CBP) Office of Field Operations (OFO) agriculture specialists at the Port of Baltimore made a first in nation pest discovery when they intercepted a live insect known as Chaetocnema breviuscula Felderman (Chrysomelidae), a beet flea beetle, while inspecting

ceramic tile from Italy. This jumping beetle chews little holes in the leaves of agriculture crops. Young plants suffer badly and normally die. Baltimore CBP agriculture specialists recorded the nation’s first interception of a Chaetocnema breviuscula Felderman (Chrysomelidae), a beet flea beetle, while inspecting ceramic tile from Italy on November 12, 2015.“Keeping this pest out of the nation saves the American agricultural industry from the expense of eradication, and the hardship of finding their crops damaged by a new danger,” said Dianna Bowman CBP Area Port Director for the Port of Baltimore. “By stopping destructive species at the border, before they can enter the United States for the first time, CBP officers and agriculture specialists protect this vital American industry.” The beetle was discovered November 12 at the Baltimore Seaport in the interior of a container containing ceramic tile from Italy.

Police arrest smuggler, seize marijuana in Pinal County

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pursuit and crash in the desert lead deputies to 280 pounds of marijuana and the arrest of a man. Mark Clark, Public Information OfRicer with the Pinal County Sheriff’s OfRice says that deputies spotted a silver Ford SUV on Papago Road, just south of the Ak-Chin Indian Community. A deputy attempted to stop the driver for a civil trafRic violation, but the driver Rled at speeds up to 70 mph, until he crashed into a clump of trees north

of W. Jean Dr. and N. Glyde Dr. The smuggler Rled on foot and was apprehended about 1/2 mile north by an Ak-Chin police ofRicer assisting the PCSO deputy, said Clark. The smuggler has been identiRied as Guadalupe Acosta-Gutierrez, 22, from Sinaloa, Mexico.

The Ford SUV was found to contain 20 bales of marijuana, valued at $140,000, said Clark. Acosta-Gutierrez was arrested and booked into Pinal County Jail. —CB Report

Ireland Customs seizes cigarettes worth €357,000 ROSSLARE HARBOUR

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ustoms ofRicers made the seizure after inspecting a truck that had arrived in Rosslare port from Cherbourg in France. The lorry was registered in Lithuania. The Revenue said the vehicle had been identiRied as suspicious and the cigarettes, which had a retail value of more than 357,000 euro, were discovered after a scanner was used to examine the load.

The cigarettes were branded Minsk Superslip, Minsk Short and NZ Gold Superslip. The Revenue said the driver of the truck, aged in his 20s, was questioned and later released as i nvestigations continue.

Meanwhile, That’s according to new research from Deloitte, Manchester Airports Group (MAG) and inward investment agency MIDAS. The sixth wave of international

business traveller research, which monitors trends and changes in inbound business traveller behaviour at Manchester Airport, indicated that over a third of those who travel here on business come from either Germany or the USA. Just short of 40 per cent of high frequency visitors were from Germany, and of those identiRied as wanting to expand their operations in the north west, over 37 per cent were from German manufacturing Rirms. The research also found that 29 per cent of those staying for seven days or more were from Germany or the USA. It’s thought that the increase in direct Rlights between Manchester Airport and the USA are helping to boost the number of American travellers coming here on business. Jo Ahmed, partner, global employer services at Deloitte in the North West said: “The north west has long-standing links with Germany thanks to our shared expertise in the manufacturing sector and it’s encouraging to see that we are continuing to strengthen.

Malaysia marine police seize contraband cigarettes worth RM166,380

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he marine police seized RM166,380 worth of contraband cigarettes from a speedboat off the shores of Pontian today. The authorities also seized the boat and engine, worth RM40,000. Region 2 Deputy Marine Police Commander Superintendent Salehuddin Mat Zaman said the PSC33 enforcement team was conducting an operation in the waters off Pontian spotted a speedboat

heading toward the Pontian Kecil shore. “The team gave chase for about 10 minutes and Rired warning shots in the air to compel the speedboat to stop. “However, the boat sped toward a mangrove forest in the shores of Pontian Kecil.

Two men jumped off the boat and Rled into the forest,” Salehuddin said in a statement. Upon inspecting the boat, the team found contraband cigarettes of various brands. The case is being investigated under Section 135(1)(e) of the Customs Act 1967.—CB Report

Italian police seize 1,000 smuggled finches

O ROME

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ne thousand protected finches have been freed back into the wild by the Italian police after they foiled an attempt to smuggle the prized birds to Malta on board a catamaran last month. The finches

were hidden in vegetable crates when they were discovered in a car, driven by an Italian, as it was boarding the Virtu Ferries catamaran in Pozzallo heading to Malta. The 1,000 finches, which included serins and goldfinches, were squashed into crates 20cm high with no water. The crates were covered with a cloth to avoid detection.

The birds were confiscated by the police while the driver faced charges of animal abuse as well as the keeping and transporting of protected species illegally.

The smuggling attempt was one in a series discovered in October, ahead of the start of the finch trapping season in Malta.

In the same month, over 1,300 songbirds were discovered in

different smuggling operations over three weeks, reflecting the illegal trade of protected birds spurred by the government’s decision to reintroduce trapping.

The smuggling of finches yields thousands of euros in income to the suppliers – a finch can easily fetch €100 to €250 in Malta when it is bought for close to nothing in Sicily.

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shipping activity at Port Qasim KARACHI: Two ships carrying Coal and LPG Mix were berthed at Multi Purpose Terminal, and Engro Vopak Terminal, respectively. Meanwhile five more ships carrying Containers,Rice,Chemical and Canola Seed also arrived at outer anchorage of Prot Qasim during last 24 hours. Berth occupancy was 65% at the port on Monday where total seven ships namely SC Alghero, 7-Posiecon, Nalee Naree, Ikan Seligi,ER Brighton, LPG Russel, and Bunga Aster are currently occupying berths to load/offload Containers, Rice, Coal, Fertilzer, LPG Mix and Edible Oil respectively during last 24 hours. A cargo volume of 77918 tonnes comprising 33923 tonnes imports and 43995 tonnes exports inclusive of containerized cargo carried in 2192 containers (TEUs) was handled at the Port.

widening of Panama Canal means bigger ships to bring more imported goods iving next to a port is kind of like living next to a coal plant except the EPA isn’t really regulating it.

Take the port neighborhood of Ironbound in Newark, N.J. Residents constantly have to breathe in exhaust from diesel-powered trains and trucks that haul imported goods (like the ones you probably wanna buy for the holidays), diesel-burning garbage trucks that haul waste from as far away as New York City (and dump the trash into a massive, nearby incinerator, which smells exactly the way you imagine rotting garbage smells), and even jet fuel-burning airplanes overhead that transport people in and out of the international airport. And it’s about to get worse: The widening of the Panama Canal means that even bigger ships will bring in more imported goods. That’s why the Moving Forward Network, an alliance of grassroots environmental groups, is demanding the agency finally step in and do something to reduce the pollution in port.—CB Report

Ports & Shipping

high security alert at all air, sea and land ports: al-Saneen

he Senate’s rejection of a proposed shipping bill allowing foreign vessels greater access to Australian ports has put a $20 million port project in doubt. The amendments would have renamed the Coastal Trading (Revitalising Australian Shipping) Act 2012 to the Coastal Trading Act 2015 and replaced a three-tiered licensing system with a single permit, allowing both Australian and foreign-flagged vessels to access Australian ports for 12 months. It would have allowed foreign vessels working between Australian ports for more than six months per year to pay foreign wages to their crew.

After the legislation was voted down in the Senate 31-28, stevedoring company.—CB Report

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kochi port shows little improvement during current financial year argo movement through Kochi port has shown little improvement during the current financial year over the previous year.

Indian Ports Association figures show that cargo movement through Kochi increased 2.08 per cent between April and October this year when compared to the same period last year. However, Kochi has done better than Chennai, Visakhapatnam and New Mangalore ports where cargo throughput has come down during the period under consideration.

Cargo throughput fell 3.76 per cent in Visakhapatnam; 3.82 per cent in Chennai and 8.76 per cent in New Mangalore.

Among the ports where there has been an increase in throughput, Marmugao has shown an increase of 25.27 per cent. Kolkata has shown an increase of 16.92 per cent.

Kochi handled a total of 1,31,12000 tonnes of cargo during the period.

Meanwhile, Cochin Port Trust has invited bids for conducting ship manoeuvrability and mooring studies for berthing vessels at the proposed Coast Guard berth at the port.

The Port Trust has, on behalf of the Indian Coast Guard, proposed to build a dedicated berth for berthing Coast Guard vessels in the Mattancherry channel.—CB Report

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australian ports put $20m port project in doubt

Wednesday December 2, 2015

HONG KONG

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cting Assistant Undersecretary for Ports Affaires at the Ministry of Interior, MajorGeneral Faisal Al-Saneen emphasized on the high security alert at all air, sea and land ports, reports Al- Rai daily.

This, he said, is “in light of the security situation in the region and the complex methods used by the

people and the terrorists to smuggle contraband into the country.

He said tighter controls will be exercised at all border ports entry and exits in the form of through checks on passports to cover all aspects of security to ensure safety and security in the country.

On demands by Britain to tighten security procedures in Kuwait to protect borders, Saneen said in a press statement, a British delegation was in Kuwait to look at the measures adopted by the security authorities. Regarding accusations that some important Rigures were

behind the drug smuggling operations in the country, Saneen said “this is not true, and the statistics issued by the concerned authorities clearly show that those who are behind this are ordinary people.

Statistics also show those who are involved in drug trafRicking are expatriates.” On smuggling of weapons, he replied, “we cannot eliminate this phenomenon 100 percent, in spite of the use of computers and technology to help arrest the smugglers, because the modus operandi of the smugglers seems to change each time.

China looking to improve environmental performance

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BEINING

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ontainer terminals in China looking to improve their environmental performance need look no further than Shekou Container Terminals.

The terminal operator has won recognition for cutting carbon emissions, saving energy, and reducing waste through a strategy that also targets high productivity and quality service.

At the 11th China Freight Industry Awards held in January, SCT was ranked among the top 10 container terminals for service and as the ‘best low carbon container terminal.’ Its location in the Pearl River Delta economic zone is a further factor in the terminal’s success. “SCT is located at the estuary of the east coast of the Pearl River,” said Oscar Wang, SCT’s assistant general manager. “Benefiting from its unique location, it has become the marine gateway from the PRD area to the world. PRD’s foreign

trade volume accounts for one third of the whole nation’s.”

The delta is now home to some of the world’s biggest port operators and investors, located at ports of various sizes in a region dominated by Guangzhou, Hong Kong, and Shenzhen.

Amid rising competition from other operators in the PRD, SCT is looking for an edge through a strategy that incorporates green initiatives. “The terminal prides itself on many firsts. It is the first professional container terminal in Shen-

zhen and it is also one of the green terminal pioneers,” said Wang.

SCT is among the first operators in mainland China to sustainably develop a low-carbon terminal through adopting ISO 14001 for terminal management and initiating technical innovations to reduce emissions and energy consumption.

This pioneering green effort paid off in February 2012 with SCT’s official appointment as a lowcarbon demonstration terminal by China’s ministry of transport.

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FsT orders ADC Naureen to appear before tribunal on 7th ISLAMABAD: Federal Service Tribunal (FST) to resume hearing of cases seeking appearance of Additional Collector Customs, Naureen Ahmad Tarar before the tribunal on 7th December. FST division bench comprising members, Muhammad Arshad Bhatti and Muhammad Javed Iqbal Kasi, would hear the cases in which the additional collector had filed an application demanding permission of not to appear before the tribunal till February 2016. However, the tribunal had set the date of December seven to resume hearing of the case and hear the case and sought both sides to be in the court on the hearing day for proceedings.

Wednesday, December 2, 2015

CUSTOMS BULLETIN

fBR issues directives for conducting special audit of 5,535 industrial units SIALKOT ZafaR MaLIk

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ederal Board of Revenue (FBR) has issued the orders of special audit of as many as 5535 industrial units in both Sialkot and Gujranwala regions. Out of these industrial units 165 units belonged to Corporate Class and 5370 belonged to the noncorporate class.

According to the senior FBR ofRicials, the tax returns submitted before FBR by the exporters, importers and industrialists of these industrial units would be re-scrutinized by the FBR to detect any concealing of the facts by them while submitting their tax returns to FBR. The FBR ofRicials added that the FBR has selected as many as 60500 industrial units across the country including 2610 industrial units in Sialkot region (comprising Sialkot, Narowal and Gujrat districts) 2925 industrial units in Gujranwala region (comprising Gujranwala, Mandi Bahaud Din and HaRizabad districts) for their special audit through a special computerized draw recently held at the FBR (Headquarters) in Islamabad. FBR has also established as many as 11 special auditing teams for

Sialkot region and 13 such teams for Gujranwala region, as every team has been given 350 cases for special audit of the above mentioned industrial

units. These teams has started the process of special audit by checking every voucher and bill of these selected industrial units in a bid to de-

tect any tax evasion and any non-declaration of their assets while submitting tax returns by these industrial units, in this regard. Meanwhile,

the owners of the above-mentioned industrial units have expressed grave concern over the special audit of their industrial units by the FBR.

faisalabad aSO seizes 308 pieces of smuggled blankets FAISALABAD

NaEEM ShEIkh

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he Customs Anti-Smuggling Organization (ASO) conRiscated 308 pieces of foreign origin blankets of different brand and worth Rs 627,669 involving duty/taxes amounting to Rs 119,173.

The ASO team received credible information through Model Customs Collectorate Faisalabad Collector Zu-

lafqar Ali Chaudhary regarding the smuggling of blankets through Mehran Cargo Service, Faisalabad.

Following the information, the ASO team raided the ware house and recovered 30 cartons of blankets. The team asked the accused persons named Shahzad Ahmad and Javed Masih to show the documents regarding the legal import of the item, but they remained failed; therefore, all the 308 pieces were seized. The ASO team comprising Superintendent Muhammad Javed Mehmood, Deputy Superintendent Sardar Muhammad, Inspector Abdul Jabbar Masood, Saeed Chohan and se-

poys including Afzal Hussain Liaquat Ali Zulafqar, Ali HaRiz and Muhammad Naseer conducted raid.

Meanwhile, The Anti Smuggling Organization ASO Faisalabad seized an imported Titan Truck without Body.

According to details, in pursuance of credible information through sZulafqar Ali choudhary Model Custom Collector (MCC) Faisalabad. Anti Smuggling Organization (ASO) has seized a imported Titan Truck without body used Ritted with petrol Engine four cylinder and have not any registration number with Gear box Suspension Model TK- ABO- H756 MFD 2001 , worth Rs 1.2 million in-

volving duty and taxes worth Rs 4,37,120. Sources told Customs Today, that imported TITAN Truck (old and used) without Registration Number was brought into the country through an unauthorized route and without paying any duty and tax. ASO team staff intercepted smuggled Truck near Duddiwala Jaranwala road Faisalabad. The accused was identiRied as Muhammad Zahid son of Muhammad Saddique resident’s people colony Qadiria Chowk Faisalabad. ASO has registered a case giants accused and started further investigation in this regard. Customs Adjudication Col-

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lector 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.