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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

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Karachi, Sat February 10, 2018

ISLAMABAD

M ARSHAD

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he Federal Board of Revenue (FBR) has started collecting information about the money stashed in foreign banks, including Switzerland. These measures have been taken in the light of di-

rections of the Supreme Court which is conducting hearing of a similar case nowadays. Pakistan and Switzerland had signed Convention on Avoidance of Double Taxation in 2005 which was enforced in 2008. However, this agreement contained the old version of Article on exchange of information which was deLicient in many ways. These measures include the revision of the Avoidance of Double Taxation Agreement with Switzerland to beneLit

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out of new Swiss Policy which allows Swiss government to exchange heretofore conLidential information about ill-gotten monies stashed up in the clandestine Swiss banking industry for tax purposes. “The operational design through which advantage of the changes in Swiss laws could be taken is by way of exchange of information. Exchange of tax information is the new mechanism for the said purpose,” sources at FBR told Customs Today.

FBR takes measures to get access to money stashed in Swiss banks

FBR detects over Rs 214 million tax demand against 14 companies

Customs Export Islamabad does extra value of Rs1044m business during Jan

US Customs and B order Protection accepted Elbit systems

Peshawar Customs seizes 171 kilogram of hashish from Torkham Border

FBR has started collecting information about the money | SEE PAGE 01 |

FBR has detected short paid taxes of Rs 214 million allegedly by 14 companies | SEE PAGE 02 |

Customs Export Section at the BBI Airport did an extra value of business | SEE PAGE 05 |

US CBP accepted the latest IFT border security system deployed by Elbit Systems | SEE PAGE 07 |

Customs authorities deputed atTorkham Border has seized 171 kg of hashish | SEE PAGE 08 |

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Ginners ask govt to stop import of pest-infested cotton Saturday, February 10, 2018

National

MULTAN: Pakistan Cotton Ginners Association (PCGA) has appreciated the role of the Plant Protection Department of the Ministry of National Food Security and Research in halting cotton imports through Wagah, Torkham and Chaman borders. In a statement, PCGA leaders, including its chairman Haji Muhammad Akram, said the government should strictly monitor cotton imports at seaports and should not allow oﬄoading of contaminated and disease-infested varieties. They emphasised that the policies favouring the All Pakistan Textile Mills Association at the cost of overall agriculture sector were not acceptable to the ginners and growers.

FBR detects over Rs 214m tax demand against 14 companies

ISLAMABAD

LAHORE

CUSTOMS BULLETIN REPORT

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ational Accountability Chairman (NAB) Javed Iqbal has said that corruption is mother of all evils and the bureau is geared up to eradication corruption from the country. Today due to NAB’s proactive Anti-Corruption Strategy, NAB’s conviction ratio is about 76 percent which is a remarkable achievement in investigation of White Collar Crimes. He said that the hard work, commitment, transparency and merit being put in by NAB officers are being appreciated by national and international reputed organizations. NAB officers should double their efforts in nabbing corruption and recovered hard earned looted money of the innocent citizen of Pakistan. He said that due to excellent conviction ratio, people of Pakistan have complete trust upon NAB and we must come up to the expectations of the nation in order to root out corruption by adopting zero tolerance and accountability for all with the help of other stakeholders like media and civil society etc. He said that today NAB has moved with new zeal and effort. Through detailed introspection and analysis of organizational, operational and prosecution weaknesses, overhaul of procedures and all pillars of the organization i.e. Operations, Prosecution, Human Resource Development and Awareness and Prevention have been reactivated.

he Federal Board of Revenue (FBR) has detected short paid taxes of Rs 214 million allegedly by 14 companies. The companies were selected in a random tax balloting. As per sources, the FBR Corporate Regional Tax OfLice Zone-6 has raised a demand of over Rs 214 million short-paid by the companies for the tax years 2015 and 2016. The demand was created by the Corporate Regional Tax OfLice, it was informed. The FBR created demand against 14 companies, including M/s Pknic Pakistan Network Information Centre (Private) Limited that short-paid Rs 1,295,726, M/s Aaqoo Technologies (Private) Limited Rs 825,000, M/s Regler Engineering SMC (Private) Limited Rs 12,215,383, M/s Resourcing Partner (Private) Limited Rs 810,756, M/s Pakistan Mutual Insurance Company Rs 10,564,646, M/s Marvel Hotel & Restaurant (Private) Limited Rs 6,494,8470, M/s Excellence Delivered (EXD) (Private) Limited Rs 107,589,107, M/s Ferotek (Private) Limited, Refund Rs 8,770, M/s Fast Intelligent (Private) Limited, Rs 47,349, Hotel Liberty (Private) Limited Rs. 1,207,272, Aracon System (Private) Limited Rs 1,4014,600, Grace Hotel (Private) Limited, Rs 320,130, Mr COD Pak-

NAB geared up to eradicate corruption, says chairman

istan (Private) Limited Rs412,500 and MJLA Solutions (Private) Limited Rs24,417. Talking to Customs Today Deputy Commissioner Umer Zeb Khan has said that his department is taking effective measures to detect tax evasion. He said that any-

one who found involved in tax evasion will be dealt according to law. Deputy Commissioner Umer Zeb said that Regional Tax Office Zone6 adopted a comprehensive strategy to recover outstanding amount from defaulters. He said that these

cases have been sent for further action to the higher forum. The total tax liability which the companies failed to deposit to the national exchequer and the FBR afterward detected the discrepancies reached to Rs 214 million.

‘CPEC-SCO connectivity to further boost economic cooperation’

ISLAMABAD

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eputy Chairman Planning Commission Sartaj Aziz on Tuesday said that the connectivity between China Pakistan Economic Corridor (CPEC) and Shanghai Cooperation Organization would further enhance economic cooperation among the member states. “Special Economic Zones along the length of the Corridor would

spur growth and economic opportunities for the entire region,” Sartaj Aziz said while talking to Secretary General of SCO Rashid Alimov who called on him here today. Sartaj Aziz conveyed his deep appreciation for the strong support and facilitation extended by the SCO Secretariat in the process of Pakistan’s accession to Shanghai Cooperation Organization in June 2017. Rashid Alimov, who is also former foreign Minister of Tajikistan said, the full membership of Pak-

istan and India in SCO, will greatly enhance the development prospects of the entire region. Aziz said that “Shanghai Spirit” as enshrined in the SCO Charter and the Treaty on long-term neighborliness, friendship and cooperation serves to promote our shared vision of mutual trust, beneLit, equality, consultation, respect for cultural diversity and pursuit of common development. “Regional connectivity is one of the seven goals of Pakistan’s Development Vision 2025

and is an important element of SCO’s Development Strategy 2025” he added. He said that Pakistan was ready to take concerted measures which are aimed at further expanding mutually beneLicial trade, economic cooperation and connectivity in the SCO region. He also said that Pakistan encourages trade and transit through its territory as government was upgrading infrastructure, roads, railways and ports as Pakistan was open to become conduit for linking Eurasian landmass,

China, Russia and Central Asia with the Arabian Sea. During the visit of Secretary General, a presentation was made on the different projects that are under implementation under the China-Pakistan Economic Corridor. In concluding the presentation Aziz said that CPEC was a Llagship project under One Belt One Road (OBOR) and will provide natural connectivity link to SCO member States. It is already connected to six routes of SCO through the nodal point of Kashgar.

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he Customs Export Section at the BBI Airport Islamabad did an extra value of business of Rs1044million during the month of January FY17-18 against the month of corresponding FY2016-17. According to details given by sources of Customs Export Section Islamabad that the Export Section earned the export business of Rs2819million during January Financial Year (FY) 2017-18 while it received the export business of Rs1775million during the previous FY16-17. Sources told CT that the Export Section achieved 58.79% growth during January FY17-18 against the corresponding FY16-17. The Export Section entertained 20,582 Goods Dec-

Saturday, February 10, 2018

larations (GDs) during first seven months (July to January) FY17-18 while it generated the export business of Rs21274.65million during first seven months of FY17-18. The sources notified CT that the Customs Export Section did the export business of Rs10254million during 2nd Quarter (October to December) Fiscal Year 2017-18. The Export Section earned Rs2053.56million during 2nd quarter FY17-18 against the export value of 1st quarter (July to September) FY17-18.

did ec tion S t r o p of ms Ex siness Custo u b t r d po ng 2n the ex n duri o i l l i 54m er to Rs102 (Octob r e t r ear Q ua isc al Y F ) r e b Decem 18 2017-

During 2nd Quarter FY17-18, the Export Section processed 17,730 Goods Decelerations (GDs) and got the business of Rs8200.44million during the first Quarter FY17-18. The exports are flourishing at the Export Section of Islamabad during first six months (July to December) FY17-18. During 1st Quarter FY17-18, the popular exports were of fresh chilled meat, vegetables, surgical goods, leather goods, textile fabrics and a little amount of small consignments of different other items. Explaining the comparative performance between 1st Quarter 2017-18 and 2016-17, the sources told CT that, during the month of September FY17-18, the Export Section recorded 38.17% growth with the extra value of Rs860million against the previous FY1617. During September FY17-18, the Export Section earned the business of Rs3112.14million while it did the business of Rs2252.33million during FY2016-17.

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EDITORIAL

Another World Bank loan

he external debt liabilities of Pakistan have crossed $85 billion mark in the second half of the current fiscal year, but the government has signed another loan programme with the World Bank to get $305 million purportedly to support projects in agriculture sector in Punjab and improve nutrition status of women and children in Khyber Pakhtunkhwa. Reports suggest the loan is acquired to assist the Punjab government to promote transformational changes in the crop and livestock sub-sectors. The main focus of activities will be to increase on-farm productivity and value of crops and livestock; increased value addition and competitiveness of crops and livestock, and enhanced resilience of small landowners to climate change and natural disasters. If anybody understands the objectives of the loan, it is only the government policymakers as there will be no visible change in the status of the agriculture sector as well as the farmers at the end. The oďŹ&#x192;cial bureaucracy always plays with figures and lays down unspecified objectives to satisfy the international donor agencies and create the space for more loans. There is no doubt that the current loan of $305 million will add a burden of at least $1 billion on the national economy in a few years. The government documents concentrate on possible results area to be achieved through the loan programme, including specific combination of policy reforms, strengthening of the agriculture institutions and public investments. An additional $5 million will be spent in Khyber Pakhtunkhwa for the projects to enhance nutrition for mothers and children. The objectives of the grant are described as scalingup nutrition intervention to improve the nutritional status of infants under two-year age as well as lactating and pregnant women. There is a need to re-write standard operating system not only for the federal government but also for the provincial governments. There should be a general discussion in the National Assembly and the Senate before the acceptance of the new loans. The incumbent government is allowed to enter loan programmes without taking the parliament into confidence. This leads the economy to go astray. It is the unfortunate aspect of the national politics that every government has added its share of miseries to the national economy.

Abandoning development schemes A

LAHORE

DR AFTAB AFZAL

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ccording to media reports, the federal government has cut the budget for 400 development schemes partly to fund the projects in the political constituencies and partly to save money for the general elections. The decision will spare at least Rs 200 billion at the cost of 175 new and 217 ongoing schemes. Apart from this, the Ministry of Finance has also notified a cut of 10 percent in the development expenditures of all federal ministries. Experts believe the decision will consume the entire budget of the second half

of the current fiscal year as well as will increase the cost 392 schemes when the same will be re-launched next year. Several dozen approved, unapproved and ongoing schemes of the Public Sector Development Programme will also face cut in the financing. This is the classic example of mismanagement and administrative failure in this country where the leaders love to make photo sessions and install plaques of inauguration for the development projects the most of which are abandoned half way. There is no one to be held accountable for the loss of the public money and the planners of the unfinished projects and

schemes have never been identified. As hundreds of development schemes are already at the verge of collapse, another 220 new proposals and projects are in the pipeline and are awaiting approvals from the competent authorities. It appears the policymakers have no capacity to look into the future and it will be a matter of self-description to expect that they would be able to make long term policies for the nation. It is not a secret that thousands of development schemes launched by the Pakistan Peopleâ&#x20AC;&#x2122;s Party government under Peopleâ&#x20AC;&#x2122;s Works Programme were abandoned by the PML-N government back in 1990s. And

the PPP government did the same with the PML-N schemes during its tenure in the office. There is only one solution to all these woes and that is to depoliticize the government departments. There is a need to make legislation to rid the political interference in the official business. The state should continue to function on its own without caring which political party is governing the country. The political parties, while sitting on the opposition benches, should hire experts and technocrats to do homework and serve the nation in better way after coming to power.

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Germany halts arms exports to Saudis Saturday February 10, 2018

World

BERLIN: German government has announced it is suspending arms exports to Saudi Arabia and other countries waging war in Yemen, a measure that sets a new bar for Western countries selling to Riyadh and puts pressure on Canada to follow suit. Human rights advocates have accused Saudi Arabia of war crimes over its conduct in Yemen, where more than 5,200 civilians have been killed and 8,800 injured since Riyadh began a military campaign there in 2015 against Houthi rebels aligned with Iran. Canada is sending billions of dollars worth of armoured combat vehicles to the Islamic kingdom, which has ramped up a violent military campaign in Yemen, a country on its southern border.

US Customs & Border Protection Vietnam’s cosmetics imports double to $6b accepted Elbit systems HANOI

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NEW YORK

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S Customs and Border Protection (CBP) accepted the latest Integrated Fixed Tower (IFT) border security system deployed by Elbit Systems of America, LLC. This IFT system, located in the Sonoita, Arizona, Area of Responsibility (AoR), marks the company’s third successful deployment of the system. Other previous deployments of IFT accepted by CBP were for the Douglas and Nogales, Arizona AoRs. “Our advanced technologies provide U.S. Customs and Border Protection with trusted border security capabilities,” said Raanan Horowitz, President and Chief Executive OfLicer of Elbit Systems of America. “America’s Border Patrol agents rely on our operationally proven solutions for greater situational aware-

Egypt turns to US corn as Ukraine’s influence wanes ncreased competition for Egypt’s 8.8 million mt corn import market has seen the country pick up the second substantial corn export sale from the US, while government data suggest Ukraine’s influence in the market is waning. The USDA unveiled the second substantial private corn export sale Friday, with 170,000 mt booked to Egypt to follow hard on the heels of 115,000 mt announced Egypt is still among the big buyers of Ukraine corn, but for now there are only two available corn origins at normal prices Ukraine and USA,” one Ukraine-based market source said. We have less corn this season, and very good demand, so our prices are firming if you count freight and FOB prices, US corn can be even cheaper [than Ukrainian]. There is sense in buying US corn,” the source said. –CB Report

ness and enhanced safety.” As the system integrator, Elbit Systems of America furnishes the sensor towers with radar, day/night cameras, and command and control software that combines data into a single operating picture. Information from all the towers is networked into Border Patrol Station command and control centers, which increases situational awareness for Border Patrol Agents. IFT has proven to be a reliable system and provides CBP

with 24/7 surveillance coverage. The system also provides CBP with a platform to integrate existing and future sensors to further improve border protection and agent safety. On the path to system acceptance, signiLicant milestones must occur. Several months of construction, integration, test activity, and system veriLication ensure each IFT meets performance requirements. Each system must detect, track, identify, and classify border activity.

Sterling rebound hits construction imports from UK

uilding Lirms spent about 35 per cent less on UK goods and services in November than they did for the same month a year earlier, while the Linal two months of 2017 saw a fall in both the number of import purchases and in the average transaction size. Fexco’s analysis of nearly 3,000 transactions shows the sharp decline in imports reversed a boom seen in the Lirst 10 months of the year. In the January to

October period, the number of import transactions rose 11.5 per cent, while the total spend jumped 171.5 per cent versus the same 10-month period a year earlier. The reversal came as sterling staged a recovery against the euro, driving up the cost of imports. The single currency slipped from 93 pence at the end of August to 87.5 pence a month later. In January 2018 it fell even further, sliding to 86.9 pence. –CB Report

ietnam Essential Oils, Aromatherapy and Cosmetics Association, said Vietnam has become an emerging market for cosmetics with average growth of 30% in recent years. However, most cosmetics on the local market are imported. Domestic cosmetics production is still underdeveloped and Vietnamese cosmetics are mainly of low and medium grade. Last year, the country imported US$6 billion worth of cosmetics but exported only US$500 million, leading to a trade deLicit of more than US$5 billion. Many foreign cosmetic brands, especially from South Korea, Japan and Europe, have been present in Vietnam. The country has cut tariffs on cosmetics after signing a number of free trade agreements, making it even more appealing to for-

Reconsider taxes on agri sector

ordan is paying the price for its national stand on Jerusalem, which forced the government to enact harsh decisions under such difLicult circumstances, acting prime minister, Mamdouh Abbadi, said on Wednesday. Brothers before friends refrained from helping us this year and the year before, but we cannot give up on Jerusalem, this is what we say and we will pay the price. We are counting on our people to bear the unbearable, for Jerusalem,” Abbadi said during a meeting with farmers and agriculture sector leaders. The Jordan Farmers Union (JFU) arranged for the meeting at the

Indonesia still chasing $150b budget

JAKARTA

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ndonesian President Joko Widodo is still chasing some US$150bil to fund his ambitious nation-building agenda, almost halfway into a Live-year infrastructure plan. The government has so far received pledges for just over half the funds

needed to help develop the road, airport and railway projects planned in a US$327bil pipeline, latest government Ligures show. Just US$15bil has come from the state budget, with the bulk committed by private investors, including from China. Widodo, known as Jokowi, needs outside money for his nation-building programme after government revenue was battered by the end of the com-

eign cosmetics manufacturers and retailers. Minh said Vietnam’s cosmetics spending is much lower than in other Asian countries like Thailand and South Korea. However, along with strong economic growth, Vietnamese consumers are paying more attention to skincare and spending more on cosmetics, especially natural and organic products. Informa Beauty division international director Claudia BonLiglioli said Vietnam has great natural resources for organic cosmetics production and many foreign and domestic manufacturers have begun investing in this sector. However, the country has not had speciLic standards and ingredient requirements for, and deLinition of natural and organic cosmetics. According to Minh, Vietnam has a variety of plants that can be used for cosmetics production such as aloe vera, turmeric and seaweed. Domestic businesses should use local ingredients to manufacture high-quality and safe products to increase their market share.

modities boom and as tax compliance remains poor. With China making a massive push to build infrastructure and new trade routes across Asia through its Belt and Road Initiative, the world’s second-largest economy looms large as an obvious backer for Jokowi’s plans. In reality, there is only a handful of countries with a surplus of money,” Rainier Haryanto, the programme director

Sports City in Amman and invited the government for a dialogue as all components of the agricultural sector strongly condemned the government’s recent imposition of a 10 per cent tax on some agricultural inputs and outputs without prior consultation with sector representatives. At the meeting, Abbadi pledged that the government would reconsider its decision. Decisions are not sacred and they can always be revisited. We are here to say that we believe in dialogue,” Abbadi told some 300 attendants. JFU President Oudeh Rawashdeh said at the meeting that the agriculture sector. –CB Report

of the Indonesian government’s Committee to Accelerate Priority Infrastructure, said in an interview in Jakarta. “The US, they are in debt. The Japanese, they are also in debt,” he said, but the Chinese have the money to lend. Some urgency may be required. The World Bank says Indonesia has a US$1.5 trillion infrastructure gap compared to other emerging economies.

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NAB arrests Balochistan MPA on corruption charges QUETTA: The National Accountability Bureau’s (NAB) Balochistan chapter arrested a former food minister and sitting MPA, Mir Izhar Hussain Khosa, on corruption charges in the food department. “NAB has arrested Mr Khosa for his alleged involvement in corruption of millions of rupees,” a spokesman for the bureau said. He said the former food minister ignored the department’s recommendations and appointed a Grade 6 employee as chief of the Provincial Reserve Centre (PRC), located on the Sariab Road in Quetta.

Saturday, February 10, 2018

CUSTOMS BULLETIN

Peshawar Customs seizes 171 kilogram of hashish from Torkham Border PESHAWAR CUSTOMS BULLETIN REPORT www.customsbulletin.com

he Customs authorities deputed at Torkham Border has seized 171 kilogram of hashish of Line quality from a truck on Tuesday at Torkham Border. According to the details, the truck bearing registration number C9643 Nangarhar was intercepted by customs authorities for routine checkup. Upon checking customs team recovered Line quality of hashish which were hidden in secret part of the truck upon which the driver Salih Khan was arrested and a case was Liled against him for smuggling of narcotics into Pakistan. This has been Lirst of its kind seizure during current month of February which was made possible due to timely sharing of information by the high ups of customs authorities. Meanwhile, The new parameters will be set to expand the Customs Duty collection of the Model Customs Collectorate Peshawar during current Financial Year 2017-18. During the current month, the collectorate has showed a good performance which will be enhanced through further actions. This was stated by New Collector of Customs

Muhammad Saeed Jadoon at the Customs House Peshawar while meeting with customs ofLicers at the MCC Peshawar. The ofLicers in-

formed the collector about the working procedure of the collectorate on which the collector inquired about the details of the few pending issues.

The collector customs also asked about the revenue collection of various customs stations and the developing work carried out at Aza Khel

Dry Port on which the collector was told that the work will be completed soon and the Dry Port will be provided with storage of goods.

FBR to conduct audit of 7295 industrial units of Gujranwala Division SIALKOT

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ederal Board of Revenue (FBR) has announced to contact the special audit of as many as 7295 industrial units in Gujranwala Division’s all the six Sialkot , Narowal, Gujrat, Mandi Bahaud Din, HaLizabad and Gujranwala districts and has Lixed February 28,2018 as Linal deadline for this special audit

here. According to the senior FBR ofLicials, as many as 25 special FBR teams (12 in Sialkot region and 13 in Gujranwala region) have been moved ahead with a special task to ensure the transparent conduction of this special audit till this Linal deadline as well. The ofLicials added that the FBR has selected these 7295 industrial units for their special audits through the recently held special FBR draws held at the FBR (Headquarters) Islamabad, saying that the owners of these selected industrial units had concealed the “facts” about their business and taxes pay-

ments in their annual tax returns submitted before the FBR in both

Sialkot and Gujranwala regions. Meanwhile, the Excise and Taxation Department’s special recovery teams have sealed as many as 145 properties of the chronic defaulters , besides, issuing the arrest warrants of 1500 other big defaulters (the habitual tax evaders) and issuing the lock up notices to 20000 other defaulters for the non-payment of their property , luxury , commercial and professional taxes, during the ongoing vigorous recovery campaign launched against the defaulters in Gujranwala Division’s all the six Sialkot, Narowal, Gujrat, Mandi Bahaud Din, HaLizabad and

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Gujranwala districts here. Senior E & T ofLicials, as many as 120 special recovery teams have yet recovered different taxes amounting Rs.1.42 billion during the Lirst seven months of the running Liscal year in this region. The ofLicials added that the above-mentioned big defaulters 145, chronic defaulters and habitual tax evaders 1500 and 20000 other defaulters were still remaining reluctant to pay their prolonged pending property, luxury, commercial and professional taxes despite the repeatedly issued warning/Linal recovery notices by these recovery teams, in this regard.