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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

Daily

Vol 1 Issue No. 292

Karachi, Thu February 11, 2016

KARACHI

MUBEEN HUSSAIN www.customsbulletin.com

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ollector Appraisement East Majid Yousfani has been assigned a new task in Australia and will serve as attaché in Consulate General of Pakistan situated in Sydney Australia.

According to the details, the federal government has

transferred the services of the grade 20 ofRicer in Customs Majid Yousfani to the Foreign Ministry.

After the transfer of Majid Yousfani, Additional Collector Haris Ansari is given an additional charge of Collector Appraisement East.

During his tenure as Collector Appraisement East the affairs of the Collectorate were running smoothly and the importers, the clearing agents as well as officers did not face any difficulty.

Price Rs. 14.00

Majid Yousfani had served as Additional Collector, Port Muhammad Bin Qasim Collectorate. He also rendered his services as the Director of the Directorate of Reforms and Automation before his appointment as Collector Appraisement East. Majid Yousfani was serving as Collector Appraisement East for last six months. The federal government decided to transfer the services of Collector Appraisement East Majid Yousfani to foreign ministry.

Faisalabad ASO seizes smuggled goods worth Rs 4.73m in January

Overcharging by private airlines: Senate body seeks repor t from CCP

Bankruptcy risk escape big gain for Pakistan: World Bank

Multan Customs settles audit observations against Roomi Fabric

Zia Ahmed Khan assumes charge as acting president KCCI

The ASO seized different smuggled goods worth Rs 4.73 millions during Jan | SEE PAGE 02 |

Senate Standing Committee on Finance and Revenue has rejected the stance | SEE PAGE 03 |

The president of the WB, Dr Jim Yong Kim, said on that avoiding the risk | SEE PAGE 04 |

The MCC has settled audit paras against Roomi Fabric after the submission | SEE PAGE 12 |

Zia Ahmed, Senior Vice President KCCI has assumed charge as acting president | SEE PAGE 09 |

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Pakistan Customs holds auction of vehicles, cloth Thursday, February 11, 2016

National

KARACHI: The Pakistan Customs has held an auction of fresh and leftover vehicles at Custom House and Ghas Bandar Anti-Smuggling Organisation (ASO) on Tuesday.

According to details, the auction was held with thin attendance of buyers at the Custom House. The items offered for auction include Toyota Lexus at Custom House, Toyota Lexus Car at ASO Ghas Bandar, Toyota Land Cruiser Prado Jeep at Custom House, Toyota Land Cruiser Jeep at Custom House, Toyota Vitz at CPF Bond Rasheedabad, Shahzore, clothes 103 rolls at Custom House, Honda Inspire at Custom House and Hino Bus with general cargo at Customs Warehouse.

Faisalabad ASO seizes smuggled goods worth Rs 4.73m in January

Appraisement-East invites tenders to buy furniture for collectorate KARACHI

AFTAB CHANNA

FAISALABAD

NAEEM SHEIKH

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he Anti-Smuggling Organization (ASO) seized different smuggled goods worth Rs 4.73 millions during January.

Sources informed Customs Today Collector Faisalabad Dr. ZulRiqar Ali formed different teams to curb smuggling in the jurisdiction of Faisalabad under the supervision of Deputy Collector Falik Shair Ali which also includes Muhammad Javed Mehmood (suerintendent), Sardar Muhammad (deputy superintendent), Masood Saeed Chohan, Abdul Jabbar (inspector), Muhammad Ashraf, Liaquat Ali, Israr Ahmad and Muhammad Abdullah (sepoys). Sources said that above mentioned team successfully impounds different type of three vehicles which were brought into the country without payment of duty and taxes, smuggled cloth, food grains 420 kgs and other miscleanous goods. Sources said that accused persons failed to produce any legal documents regarding possession of vehicles and goods ASO team seized the articles and registered separate cases of smuggling against accused persons.

Meanwhile, The Customs AntiSmuggling Organization (ASO) has conRiscated 420 kilogram of foreign origin cumin seeds (zeera) worth Rs

ustoms Collectorate of Appraisement East, Custom House, Karachi has invited tenders from well reputed manufacturers, dealers, suppliers and firms/contractors duly registered with sales tax and income tax department to purchase office furniture. The bids are invited to provide office furniture, work stations and chairs, tables and sofas. According to Deputy Collector Headquarters, Appraisement East, Shah Faisal Sahu, the tender documents can be obtained from the administration branch of Appraisement East, Custom House, Karachi on cash payment of Rs 1,000 during office hours on or before 19.2.2016. The offer must contain financial impact, technical solution and after sale services to be offered by the bidder. The price offered will include all duties and taxes and the expenses incurred on supplies including transportation, shipping, installation etc where required, he added. Bidders are required to furnish a security deposit equivalent to 5 percent of their offer in the shape of pay order or demand draft from a scheduled bank.

168,000 involving duty and taxes amounting to Rs 13,460. The ASO has seized zeera under Section 16,18 of the Customs Act, 1969 and Section 3 of Sales Tax Act, 1990 read with Section 3(1)3 of Import and Export Control Act 1950 punishable under Section 156 (1) 90 of the customs act. As per details, following the instructions

of Faisalabad Customs Collector Chaudhary Zulafqar Ali, an ASO team comprising Superintendent Muhammad Javed Mehmood, Deputy Superintendent Sardar Muhammad, Inspector Masood Saeed Chohan, Inspector Abdul Jabbar, Sepoy Khalid Dogar Zulifqar Ali and others raided the M/s Kohistan Daewoo Cargo

near Railway Station Chowk, Faisalabad and recovered the Indian origin zeera. The team asked the manager of cargo service named Muhammad Rizwan for producing the documents showing the legal import the item but he could not the same on which the customs ofRicials conRiscated the shipment under customs laws.

MoC, TDAP to hold single country exhibition in Tehran by mid of 2016

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ISLAMABAD

M ARSHAD

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he Ministry of Commerce (MoC) and the Trade Development Authority Pakistan (TDAP) will hold a single country exhibition in Tehran, primarily on textiles, in the first half of 2016 to benefit out of substantial potential for export of textiles to Iran.

“In this regard, the Minister for Commerce will write to its Iranian

counterpart for allocation of space and schedule to hold the exhibition soon,” sources told Customs Today.

The source said that as result of the MoC’s efforts, the Iranian side had conveyed willingness to set up two additional crossing points at Gabd (Pakistan)-Reemdan (Iran) and Mand (Pakistan)– Pishin (Iran) to further ease trade activities between the two countries.

The MoC has conveyed its con-

currence to the Ministry of Interior for opening of the two crossing points as it will be instrumental in enhancing the formal trade.

Presently, there is only one international crossing point on PakIran border, which is at Taftan (Pakistan) and Mirjaveh (Iran).

The source added that Pakistan and Iran had agreed to form a Pak-Iran Joint Working Group on Trade (JWG-Trade) and to formulate a Five-Year Plan to enhance bilateral trade during the com-

merce minister’s visit to Teheran in April last year.

Resultantly, the MoC presented its five-year plan, which was deliberated upon with the Iranian side in a meeting of JWGTrade in August last year. The plan includes deepening and expansion of Pak-Iran PTA, removal of tariff and non-tariff barriers and measures relating to trade facilitation and trade promotion.

Moreover the source added that Minister for Commerce dis-

cussed a potential Pak-Iran Comprehensive Economic Partnership Agreement (CEPA) with Iranian Finance Minister in a meeting in Istanbul in November last year.

Therefore, the Joint Working Group on Trade, Pakistan will make the CEPA offer formally in upcoming meeting and it will enable both the countries to achieve $ 5 target of bilateral trade by easing transportation and improving facilities at entry points on border.

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Excise collects Rs 41.9 million from Sialkot in seven months SIALKOT: The Excise and Taxation Department has collected Rs 41.91 million taxes during the first seven months (July-January) of the current fiscal year.

As per details, the Excise has collected Rs 14.29 million as property tax, Rs 26.3 as vehicle token tax, Rs 1.3 million under the head of professional tax and Rs 26,900 as entertainment tax during the said period.

District Excise and Taxation Officer Muazzafar Qayyum told Custom Today that the collection was 16 percent more than the collection made during the same period of last year.

IHC seeks original draft of ATIR decision to help court

Thursday February 11, 2016

National

Overcharging by private airlines: Senate body seeks report from CCP

ISLAMABAD

NAEEM ULLAH TARIQ www.customsbulletin.com

slamabad High Court directed Appellate Tribunal Inland Revenue (ATIR) to submit original draft of its decision in order to decide fate of a petition challenging tribunal’s decision. IHC Division Bench comprising of Justice Shaukat Aziz Siddiqui and Justice Mohsin Khtar Kayani heard couple of tax references which were filed by Pakistan Television Corporation Limited through it counsel Muhammad Idrees and Saeed Afridi.

IHC bench, after hearing brief arguments from both sides directed the respondent to submit its original decision in order to help court. The bench also heard a case filed by a citizen M Asif through his counsel Sardar Anzar Iqbal against ATIR and adjourned its hearing.

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Sialkot excise seals 550 properties due to tax evasion SIALKOT

ZAFAR MALIK

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he special teams of Excise and Taxation Department have sealed 550 commercial and residential properties in Sialkot, Daska, Sambrial, Pasrur and surrounding areas due to the non-payment of their pending arrears.

District Officer Excise and Taxation Sialkot Ch Muzaffar Qayyum told Customs Today that Excise and Taxation Department has yet collected as many as Rs 100 million as motor registration fees and token taxes during the last seven months of the fiscal year 201516, besides, registering 40,000 motorcycles and 300 cars and other vehicles during this period in Sialkot district. He said that the department has achieved 100 percent official target by collecting Rs 100 million as the motor registration fees and token taxes in just seven months of the running fiscal year.

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ISLAMABAD

M ARSHAD

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he Senate Standing Committee on Finance and Revenue has rejected the stance of the representatives of private airlines and directed the Competition Commission of Pakistan to submit a report on illegal increase in airfares by private airlines by 15th of the current month.

Representatives of Shaheen and Airblue were of the view that instead of taking advantage of the suspended Rlight operation by PIA employees, the airlines had reduced the fares on domestic and international Rlights. The matter was based on the media reports that private airlines had been charging inRlated air fares from the passengers due to suspended Rlight operation of the PIA. The Senate chairman had referred the issue to the Finance Committee.

With the objective to look into the hardships and problems faced by the commuters and their resolution the Senate Finance Committee met here with Salim Mandviwala in the chair and Senators were of the stance that private airlines had taken illegal advantage out of suspended operation of PIA which was sheer injustice on passengers. Representative of Shaheen Air briefed the committee that it had closed down international Rlight operation to meet the domestic requirements and over 70, 000 passengers were airlifted to their destina-

tions inside the country. Airblue representative told the committee that 14 out of total 18 airplanes were being plied on domestic air routes.

Moreover, Airblue has only single class. Both the airlines were of the view that no passenger had lodged any complaint against inRlated airfares, however, there were chances that travel agents might have charged extra amount from the passengers.

But, if some agent is found involved in any such act, appropriate action will

Shaheen and Airblue were of the view that instead of taking advantage of the suspended flight operation by PIA employees, the airlines had reduced the fares on domestic and international flights. The matter was based on the media reports that private airlines had been charging inflated air fares from the passengers

PRV Cell to start work on VR of steel import KARACHI

SOHAIL RAB KHAN

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he Post Release VeriRication (PRV) Cell of Customs Collectorate Appraisement (West) has started working on the Valuation Ruling (VR) with regards to the import of steel.

The sources informed Customs

Today that the Collector Appraisement (West) Dr Owais Jawwad Agha has directed the ofRicials of PRV Cell to scrutinize the import data of the imported steel consignments and submit it in the ofRice of the Collector Appraisement (West) in short period of time.

The sources further conRirmed that the Collector Appraisement (West) has also asked the ofRicials concerned to check the valuation ruling of steel imported consignments from different origins.

“There is a major possibility of generating revenue recoveries against some importers who have been imported the steel consignments by using different PCT Headings and Valuation Rulings”, sources added.

It is pertinent to mention here that the Collector Appraisement (West) Dr Owais Jawwad Agha has adopted an optimistic approach in generating revenue recovery while conducted post release veriRication of the imported consignments.

be taken against him. Chairman Committee observed that no agent could be permitted to charge desired amount from the passengers in any condition and situation. Moreover, Senators also questioned why the private airlines had not taken action against travel agents for overcharging fares. CCP told the committee that notice had been taken of the issue and letters had been despatched to the private airlines to submit their replies on the matter.

ANF recovers 10kg charas during crackdown he ANF has seized 10 kilogram charas during a crackdown in Sohrab Goth area. Sources informed Customs Today that the ANF received secret information about smuggling of narcotics in Sohrab Goth area. The ANF team intercepted a wagon in the jurisdiction of Al Asif Square and recovered 10 kilograms charas and also arrested a person who is identified as Mohammad Mubeen.

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PIA workers end strike, resume flight operations Thursday, February 11, 2016

Business

KARACHI: The flight operations of Pakistan International Airlines (PIA) were fully restored on Tuesday after the anti-privatisation employees called off their strike, saying their return to work was a must to ensure the safety and security of passengers and flights.“PIA’s entire flight schedule, including all international flights, has been restored. The passengers may come to airports as per their flight reservations,” Daniyal Gillani, the spokesman for the airline, said in a short message. The flight operations came to a complete halt on February 2 evening following the killing of two workers.

PSX drops 300pts to 32145 level on volatility KARACHI

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espite massive increase in trading volume, the Pakistan Stock Exchange (PSX) Wednesday witnessed bearish as KSE-100 index dropped 299.61 points to drop to 32144.59 points level. The stocks recorded the highest trading level of 32464.54 points and lowest level of 32104.55 points, with the volume of 168.80 million shares, having about Rs5.08 billion value. As many as 321 companies were active; of which 105 advanced, 198 declined and 18 remained unchanged.

Technology & communication

KP NAB recovered Rs 25b in 2014-15 PESHAWAR

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ational Accountability Bureau’s (NAB) Khyber Pakhtunkhwa office recovered a huge amount of Rs 2500 million (Rs 25 billion) in corruption cases during fiscal year 2014-15.

According to the two years (201415) performance report issued by the KP bureau, the NAB arrested 425 corrupt elements for the last 14 years, 323 references registered and Rs 1,400 millions recovered out of Rs 10.58 millions.

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was the top traded sector with 28,588,000 volume, while cable & electric communication remained second with 14,848,000 volume.

The three top traded companies

were PTCL with a volume of 13,231,000 and price per share of 15.07 (0.12), Jah. Sidd. Co with a volume 12,751,000 of price per share of 21.25 (0.23), and TRG Pak Ltd

with a volume 11,731,000 of price per share of 27.74 (0.40).

The top three gainers were Shezan Inter with price per share 590 (28), Ghandhara Ind with price per share of 407.27 (12.77) and Atlas Battery price per share of 699 (12.11). The top three losers were RaRhan Maize with price per share of 8100 (-400), Nestle Pak with price per share of 7225 (-275) and Siemens Pak.XD per share of 904.49 (-25.50). Earlier, the PSX remained in bearish note till midday as KSE-100 index lost another 157.64 points to drop to 32286.56 points level. On Tuesday, the PSX recorded bearish trading activities for the Rirst time in the last 11 days as investors tracked lower international oil prices to book proRits at higher levels.

Bankruptcy risk escape big gain for Pakistan: World Bank ISLAMABAD

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he president of the World Bank, Dr Jim Yong Kim, said on Tuesday that avoiding the risk of bankruptcy was a huge achievement of the Pakistan government.

He also said that the security situation in Pakistan had improved.

Talking to Prime Minister Nawaz Sharif at the PM House, Dr Jim Yong Kim expressed full support for the government’s tough economic deci-

sions and said that the World Bank supports the structural reform agenda. “I can recall our Rirst meeting when I had shared my worries about Pakistan’s security, energy and macroeconomic stability. Let me state that under your leadership, Pakistan has witnessed phenomenal improvements in all three sectors and we support your endeavours,” Dr Jim assured the prime minister. He applauded the prudent economic policies of the present government, saying that Pakistan’s economic outlook has become stable which is the result of the ardent efforts of the country’s Rinancial

team. “Pakistan is now on the path of increased economic growth and prosperity,” he added. The president of the World Bank said the country’s important strategic location between the world’s two largest consumer markets offers unique opportunities to Pakistan for further economic development. Dr Jim admired the government’s projects aimed at achieving better regional connectivity and cooperation.Prime Minister Nawaz Sharif stated that the government was making all-out efforts to bring improvements in every sector of the economy.

Pak best market for edible oil with 3.5m tonne consumption: minister KARACHI

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akistan is a huge market for imports of edible oil and oilseeds as the country’s total requirement is around 3.5 million tons per annum. This was revealed by Minister for Defence Production, Rana Tanveer Hussain, while speaking at the first global edible oil conference in Pakistan. He said that Pakistan is geographically ideally located for the third country trade and to those countries which are landlocked. Rana Tanveer said that in the time ahead the local production will also increase. He said, “We are fortunate to have excellent logistics for the import of edible oils, we have seaports – Karachi Port and Port Qasim. Gwadar which is the third one, is progressing well and will be a future destination for import of oils.” Tanveer said he would encourage the country’s associations to suggest ways and means to supply end-products like ghee and cooking oil to landlocked countries which will give Pakistan additional markets for export of end-products.

The minister was of the view that since “our indigenous production is very slow, Pakistan has to remain dependent on the import of edible oils and oilseeds.

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Overall textile exports witness 9% decline in July-Dec ISLAMABAD

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he country’s overall textile exports witnessed 9 per cent decrease during July-December 2015. According to official data, the raw cotton exports were recorded 72 million during the corresponding period, as compared to 114 million in previous year, with a decline of 37 percent. Cotton yarn

showed a 30 percent decline as its exports in second half of 2015 fell to 698 million from 992 million in 2014. Cotton cloth exports remained 1,110 million as compare to 1,237 million previous year, a decline of 10 percent. Knitwear garments exports were 1,199 million in July-December 2015 as compare to 1,236 million in JulyDecember 2014.

However, readymade garments and towels showed a slight increase

as their exports in July-December 2015 were 1,044 as compare to 1,006 in same period of 2014, an increase of 4 percent.

Towels showed an improvement of 5 percent as its exports in last six months of 2015 jumped to 398 from 390 million in 2014 same period. Meanwhile, The government will carry out as many as 58 projects worth Rs 3.15 billion proposed by the Ministry of Science and Technology under Public Sector De-

velopment Programme (PSDP) for next fiscal year 2016-17.

According to the ministry, Rs 2.253 billion was proposed against 34 ongoing projects including Rs 1.629 billion proposed against 18 ongoing projects carried over from PSDP 2015-16, while Rs 624.157 million proposed against 16 projects already approved projects not included in PSDP 2015-16.

It was revealed that the government earmarked Rs 1.51 billion

under the PSDP for 2015-16 against 32 projects and released only Rs 338.669 million i.e. only 28 percent in two quarters (July-December) of current financial year.

The ministry also proposed 24 new projects worth Rs 896 million under the PSPD. It is mentioned here that due to delay in completion of the projects, their costs have increased resulting in huge loss to the national exchequer.

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ISLAMABAD M ARSHAD www.customsbulletin.com

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ember Federal Board of Revenue (FBR) Inland Revenue-Policy Rehmatullah Khan Wazir has defended the FBR’s authority to withdraw tax from defaulters’ banks accounts.

However, members of the Senate Finance Committee termed the FBR’s action in violation of the FBR’s act and law.

While speaking in the Senate Finance Committee here, Rehmatullah Khan Wazir said that the law provided provision to the FBR to withdraw tax amount from the bank accounts of the tax defaulters. He said that this power had produced very good results as it has enabled the FBR to take measures to punish the defaulters.

But members mainly from PML-Q, JUI-F and PPP were quite critical of the FBR authority and demanded the board ofRicials operate within the ambit of the constitutional jurisdiction.

They also pressed on appropriate legislation to conRine the actions and operations of FBR within the constitutional provisions. They were of the view that FBR was not authorized of withdrawing any amount from the bank account of any tax defaulter until the court would have issued the judgment in a sub judice case.

Kamil Ali Agha, Talha Mehmood and few others demanded slashing of FBR’s power through legislation. At this Chairman Committee questioned

the legal status of FBR action in case the court would issue judgment against the FBR in the said case. However, Rehmatullah Khan Wazir observed that FBR would become toothless without this power because it would not be in a position to punish any defaulter.

He further said that China Harbour Engineering Company was defaulter of Rs 2.10 billion tax and FBR enjoyed powers to pull out up to Rs 50 million from the bank account of any defaulter company. Although the Inland Revenue department had made preparations on other relevant issues including levy of additional sales tax on CNG industry, yet the committee deferred the discussion on this topic till next meeting.

Meanwhile, A high-level delegation of FBR ofRicials is in Karachi to hold meetings with ofRice-bearers and members of trade bodies, business community and tax bar association on directive of Special Assistant to Prime Minister on Revenue Senator Haroon Akhtar Khan to apprise them of the Voluntary Tax Compliance Scheme (VTCS).

The team comprises Member Inland Revenue Policy Rehmatullah Wazir, Member Facilitation and Taxpayer Education Wing Nadeem Dar and Chief Inland Revenue Policy Vishnu Raja Qavi. The three senior FBR ofRicials would stay in Karachi until the weekend and hold meetings with the traders and repre-

sentatives of business community and explain them the beneRits and advantages of the recen launched Voluntary Tax Compliance Schem which allows the traders a broad range of i centives to become part of the tax net.

The sending of a high-level FBR team to t metropolitan city of Karachi comes followi Haroon Akhtar Khan’s instructions to the of cers and staff of FBR to make all-out efforts make the scheme successful as the scheme o fers a “rare and golden opportunity to t traders to become part of the tax net a do their business with ease and com fort and without any fear of bei audited for the next four year

ttee ommi C e c n e Fina ullah Khan Senat at Rehm t the law here, a said th on to the r i z a W isi d prov w tax e d i v o ra pr withd o t R bank FB m the o r f t n amou ts of the tax n accou ulters defa

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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

Perils of emerging debt trap

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ccording to newspaper reports, the economic managers of the country are unprepared to face the emerging situation in next few months as the external debts would be touching $70.2 billion mark by the end of the current fiscal year from $66.457 billion in September last year. The International Monitory Fund has warned that Pakistan’s debt-to-GDP ratio will reach 65 percent mark in few months contrary to the government’s claim that the ratio has dropped from 64 percent in 2013 to 59.1 percent in October 2015. Pakistan can borrow from international donor agencies only to a specific limit and once it reaches a breaking point, it will no longer be able to get foreign loans. Finance Minister Ishaq Dar and his team are apparently working on adhoc measures to pass the tenure of the present government without facing economic catastrophe. The government issued its first bonds in April 2014, raising $2 billion and avoiding the risk of default.

The IMF also came to its rescue but on the condition that the government will introduce structural reforms in economic and financial sectors. The fund also expected that the government will restructure the loss-making public sector enterprises, including Pakistan Steel and the Pakistan International Airline. The political party, which came to power with a slogan that it will break the begging bowl, has pushed the country into a vicious debt trap.

The economy of Pakistan survived around three years from 1947 to 1951 without getting any foreign assistance. Once the Pakistani prime minister of the time visited the United States, the government started signing loan agreements with world donor agencies including World Bank and the IMF. It received $121 million from 1951 to 1955 and the debt has been piling up since then.

By December 1969, the external debt of the country stood at $2.7 billion which reached $3 billion by December 1971. The external debt of the country jumped from $2.7 billion in December 1969 to over $70.2 billion in February 2016, showing a whopping 2,354 percent increase during the last 47 years. The government is still looking for the loans from foreign donors and has failed to maintain financial discipline.

Potentials of regional economy A

LAHORE

DR AFTAB AFZAL

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fter suffering years of isolation, lifting of sanctions has heralded a new era of economic opportunities in Iran. Despite pressure from Zionists lobbies in the United States and pro-Israel stance of the European nations, Iran is emerging as a new economic power in the region having close economic relations with Russia and the south American countries. China, which is fast heading towards becoming the new economic power of the world replacing the United States, has signed agreements with Iran worth $600 billion, covering a range of projects including devel-

opment of a new Silk route and close economic cooperation. Both Iran and China are immediate neighbours of Pakistan, which has close economic, political and cultural relations with the two countries. Pakistan has the potential to work as the bridge of opportunities between the two countries and the three countries can be converted into an economic zone.

The Iranian agreements with the Rive big powers of the world will not only usher in an era of peace and prosperity, but will also ensure the creation of trade and investment opportunities in the region. Being one of its closest neighbours, it will be in the interest of Pakistan and Iran to develop deep-rooted trade and economic relations. It is unfortunate that

even before the imposition of sanctions; the ofRicial trade between the two nations never crossed the $1 billion mark.

Smuggling is rampant and Iranian oil, diesel, textiles and ceramic items are frequently available in Pakistan because of the absence of a free trade agreement between the two countries and imposition of unreasonable tariffs on the Iranian goods in Pakistan. It remained a policy in Islamabad to prefer Saudi Arabia on Iran in purchase of oil. Meanwhile, Iran has the potential to export nontradition items to Pakistan and Pakistan has the ability to export textile, leather and agriculture commodities to Iran through legal channels. Iran is a middle income country and has a very strong

middle class which can be a potential consumer market for the Pakistani products. Despite the fact that Iran remained a victim of irrational foreign sanctions; it still remained a lucrative consumer market for the products of European nations. Ruassia and Japan are one of the biggest trader partners of Iran. As the sanctions have now gone, it is a good opportunity for the Pakistani businessmen and entrepreneurs to establish contacts with their Iranian counterparts and start joint ventures. Opportunities are knocking our door in terms of China Pakistan Economic Corridor and Iran Pakistan Gas pipeline project. Yet is to be seen how the Pakistani nation respond to harness these opportunities.

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Norwegian seafood exports surge 18% CAIRO: The exports of furniture sector have reached around 2.6 billion Egyptian pounds (US$332 million) in 2015 versus 2.5 billion in 2014, marking a modest growth of 6 percent. Chairman of the Egyptian Furniture Export Council Ihab Derias told Amwal Al Ghad Sunday that Saudi Arabia has seized 34.8 percent of Egypt’s furniture exports with 924 million pounds. Following Saudi Arabia, UAE was the second largest importer of the Egyptian furniture with imports estimated at 402 million pounds then Qatar whose imports are worth 218 million pounds and Iraq with imports estimated at 198 million pounds. He noted that the sector is not expected to achieve the targeted growth rate of 15-20 percent annually due to a number of problems notably the severe economic crisis that hit Gulf markets. Chairman Derias added that the growth rate of sector’s exports will decrease due to the decline in oil prices in addition to the internal problems.

Zia Ahmed Khan assumes charge as acting president of KCCI ia Ahmed Khan, Senior Vice President KCCI has assumed charge as acting president of the Karachi Chamber of Commerce and Industry. Zia Ahmed Khan, Acting President KCCI has remained associated with the Karachi Chamber since last more than 40 years and is also one of the founding members of Businessmen Group (BMG) being led

by Siraj Kassam Teli, Chairman Businessmen Group and former President KCCI. Zia Ahmed Khan has dedicat-

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edly served KCCI’s numerous subcommittees from time to time and his company has won KCCI’s Export Trophy Awards on various occasions.

Meanwhile, Chairman of National Assembly’s Standing Committee on Finance, Revenue, Economic Affairs, Statistics and Privatization, Qaiser Ahmed Sheikh, while assuring his Standing Committee’s consideration to KCCI’s recommendations in connections with budget 2016-17, advised the business and industrial community of Karachi to approach and stay in touch with the Standing Committee if they really wanted to get their issues resolved. Qaiser Sheikh, who led a delegation of National Assembly’s Standing Committee on Finance, Revenue, Economic Affairs, Statistics and Privatization during its visit to KCCI, added that any suggestion or recommendation being sent to the Standing Committee on Finance by KCCI will be thoroughly discussed and forwarded to the government for action.—CB Report

Thursday February 11, 2016

Chambers

ICCI president asks traders to take benefit of Tax Amnesty Scheme A

ISLAMABAD

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tif Ikram Sheikh, President, Islamabad Chamber of Commerce and Industry said that the government has introduced Tax Amnesty Scheme for non-Rilers according to which they could whiten their undeclared working capital of up to Rs 50 million by paying just one per cent tax of the declared working capital for the tax year 2015 and traders should take full beneRit of this scheme by paying required tax to improve the tax revenue of the country. This was said while addressing a delegation of newly elected Traders Welfare Association, F-6 Markaz, Super Market, Islamabad. The delegation visited ICCI led by its President Shehzad Shabbir Abbasi.

Atif Ikram Sheikh thanked Muhammad Ishaq Dar, Federal Finance Minister for coming up with a good solution for traders on the issue of withholding tax on banking transactions and stressed that non-Riler traders should ensure full compliance of tax amnesty scheme as government has provided them a good

opportunity to come into the tax net by paying just 1 percent of the undeclared amount of up to Rs 50 million.

He said that CDA has started operation for removal of encroachments from Blue Area and other markets.

However, he said CDA should take ICCI and concerned market unions fully on board before launching any such operation so that this issue could be tackled with consensus and businessmen could be saved from

any unnecessary losses. He suggested that a Committee should be formed comprising representatives of CDA and business community to deal with the issue of encroachments. He said business community was ready to cooperate with CDA for making the federal capital a green city, but unilateral measures should be avoided to achieve win-win solution of this problem. Sheikh Abdul Waheed, Vice President ICCI also ad-

‘Norwegian firms might invest in Pakistan’

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LAHORE

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akistan is well positioned to take off as economic indicators are portraying an encouraging picture. Growth rate is expected to reach 6 to 8 per cent in 2018 therefore businessmen of Norway should come forward and avail the opportunities through joint ventures with their Pakistani counterparts.

These views were expressed by the LCCI Senior Vice President Almas Hyder while talking to the Ambassador of Norway Tore Nedrebo here at the Lahore Chamber of Commerce and Industry. Executive Committee Members Mian Zahid Javed and Shahzad Ahmed were also present on the occasion.

The LCCI Senior Vice President said that Pakistan is a huge market and this is high time for the foreign

investors to tape huge potential and take full advantage of the investment-friendly policies of the present regime. He said that the Lahore Chamber of Commerce and Industry is ready to extend maximum cooperation to the businessmen of Norway in this regard. Almas Hyder said that Norway and Pakistan are well known to each other and their mutual ties range from good diplomatic, cultural and economic relations but these are not being reRlected in bilateral trade. The volume of total bilateral trade and imports of Pakistan from Norway are constantly dipping since 2012. He said that total mutual trade volume has come down to $69 million in 2014 from $78 million in 2012. He said that trade Rigures of last three years suggest that both countries must jointly make efforts to reverse the declining trend. The LCCI Senior Vice President said that direct in-

teraction between the business communities of two countries can make it possible to cause quantum jump in trade Rigures. Pakistan’s exports to Norway include bed linens, articles of apparel and clothing, rice, sports goods and hosiery items etc.

Pakistan’s imports from Norway are limited to polymers of ethylene & vinyl chloride and some natural polymers in primary forms. Other items include electrical equipment and scrap of iron and steel etc. He said that Pakistan is not only interested to improve trade relations with Norway but also want to welcome Norwegian investors to Pakistan. He said that China-Pakistan Economic Corridor (CPEC) has opened up new opportunities of trade and investment in Pakistan.

He urged the Ambassador of Norway to play role in projecting Pakistan as a good market for international buyers and investors.

dressed the meeting and assured the traders that ICCI would play role for redress of their key issues. Speaking at the occasion, Shehzad Shabbir Abbasi, President, Traders Welfare Association, F-6 Markaz, Super Market, Islamabad called upon the parliament for early enactment of new Rent Control Law for peaceful resolution of rent dispute as due to delay in its passage, future of many traders was at stake.

Dutch exports to Iran increase 21% in last year utch exports to Iran increased by 21% last year, ahead of the lifting of international sanctions in January this year. The value of goods exported from the Netherlands reached €450 million, putting Iran 64th in the ranking order of destinations, according to figures published by national statistics office CBS. Medical equipment made up more than one-third of all exports. In 2011, as the US and European Union trade embargo was being phased in, Dutch companies exported €600 million worth of goods to Iran. Before 2010 the country was one of the main suppliers of oil to the Netherlands, selling €944 million worth in 2009, but all imports were suspended in 2012.—CB Report

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Finland 11,788 new cars registered in Jan Thursday February 11, 2016

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HELSINKI: A total of 16,122 new motor vehicles were registered, of which 13,251 were automobiles in January 2016, according to Statistics Finland’s data. The number of new passenger cars registered in January was 11,788, which was 14.8 per cent up from the year before.

First registrations increased by 11.1 per cent from the corresponding month of the previous year as per the data based on the Vehicular and Driver Data Register of the Finnish Transport Safety Agency. The numbers are exclusive of the vehicles on the Åland Islands. The most common passenger car makes first registered in January 2016 were Volkswagen, Toyota and Skoda. The most common passenger car models were Skoda Octavia, Nissan Qashqai, Ford Focus, Volkswagen Golf and Toyota Auris, the statistics show.

US citizen arrested for importing KD 300,000 worth of meth KUWAIT

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US citizen was recently arrested with the possession of KD 300,000 worth of methamphetamine (meth), which were hidden in a parcel he imported by airmail, said security sources.

The suspect had been practicing his illegal trade and delivering the drugs to his clients for a while, the sources noted.

Case papers indicate that narcotics’ police were tipped off with information concerning the suspect’s activity. After placing him under close surveillance for weeks, during which he received the parcel and stored at his house, detectives raided the place

Julius Bär bank to pay $547m over tax fraud wiss private bank Julius Bär said here the other day that it had finalized an agreement with US authorities, paying $547 million to end a criminal investigation into claims that it helped rich Americans dodge taxes.

“Being able to close this regrettable legacy issue is an important milestone for Julius Bär,” chief executive Boris Collardi said in a statement.

“The settlement ends a long period of uncertainty for us and allows us now to again fully focus on the future and our business activities,” he added.

The Zurich-based bank had already fully booked provisions for the fine, which sent its 2015 net profit down by 67 percent to 121.2 million francs ($122 million) last year. If it hadn’t had to book the provision for the US fine, Julius Bär said profits would have grown last year by a fifth to just over 700 million francs.—CB Report

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and found 20 kilograms of meth, as well as eight large and 150 small bags full of the same drug. A case was Riled and the suspect was referred to relevant authorities.

Meanwhile, Criminal court presided over by Judge Mohammad Al-Duaij sentenced two Bangladeshi expatriates to death for smuggling and peddling drugs.

According to the case Rile, one of the convicts was seized by customs ofRicers at Kuwait International Airport for attempting to leave the customs area without handing over his baggage for security screening.

The convict, who was entering the country under Article 20 visa (domestic visa), was found in possession of one kilogram of marijuana, which he confessed he was smuggling for one of his compatriots who was eventually arrested by securitymen.

More than 33 million smuggled cigarettes seized ATHENS

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he European Anti-Fraud OfRice (OLAF) worked closely with Greek and Cypriot authorities to track the shipment and seize more than 33 million cigarettes in Greece between December 2015 and January 2016.

“Once again, the numbers show the excellent work and perseverance of our investigators, as well as the undeniable importance of European cooperation in this Rield,” OLAF Director- General Giovanni Kessler was quoted by New Europe here the other day. “OLAF brings real added value by providing its operational partners with key information on the movement of such goods and these efforts are showing clear results,” he added. All the cigarettes seized in these operations were so-called

Hungary’s NAV buys drone to eradicate tobacco smuggling

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he national tax authority (NAV) has purchased a drone to detect and monitor routes of cigarette smuggling, daily Magyar Idők reported on Monday, citing a NAV spokesperson. The aircraft, bought at a cost of 20 million forints (EUR 65,000) in European Union funding, completes a range of special equipment such as night vision devices, thermal cameras as well as a a hovercraft to control riverways. Last year, the tax authority seized 43 million illegally distributed cigarettes and 70

tonnes of tobacco leaves, the paper said. Meanwhile, Hungary’s industrial output rose by 9.4 percent year-onyear in December 2015, only slightly slower than an upward revised 9.6 percent in the previous month, the Central Statistical OfRice (KSH) said on Friday. In 2015, industrial output was up by 7.5 percent after a 7.7 percent increase in 2014. Adjusted for the number of workdays, industrial output rose by 6.9 percent in December and was up by 7.2 percent for the full last year.—CB Report

“cheap-whites”. They were mostly Richman, Royal, RGD and Jim, although new brands have also surfaced, such as the Vietnamese brand Aroma. The Aegean Sea was the target of two of OLAF’s biggest operations this season. Thanks to the close cooperation with the Greek General Secretariat against corruption (AF-

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COS Greece), Greek and Cypriot customs, 33 million cigarettes, were seized at the end of January. An additional seizure of almost 21 million cigarettes had already taken place at the Port of Piraeus, bringing the total number of seized cigarettes in Greece in the course of these 2 recent investigations to over 55 million.

COSCO to bid for Greek rail network

hina’s COSCO is expected to make an offer for Greece’s rail network after earlier becoming the sole bidder for the country’s largest port, two people familiar with the matter said, as the stateowned shipping giant forges ahead with a plan to build a European transhipment hub. Buying TrainOSE and Piraeus Port would give COSCO maritime connections to the Suez Canal and rail links to the Balkans and central and Eastern Europe.

Bolstered by December’s merger with China Shipping Group, COSCO’s focus on Greece is about building market share at a time of anguish

in a bruised and oversupplied shipping sector, industry sources said.

It also Rits with China’s “One Belt, One Road” policy to boost trade and create an outlet for Chinese industrial powerhouses caught up in the global downturn and slower growth at home. COSCO was unchallenged in its US$400 million offer for a 67 percent stake in Piraeus Port last month.

However, it could face competition for the rail network, including from United States railroad holding company Watco, one of the individuals said, after Greece relaunched the tender in an effort to drum up more interest.—CB Report

China remains Malaysia’s largest trading partner in 2015

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hina retained its position as Malaysia’s largest trading partner for the 7th consecutive year in 2015, despite dropping commodities prices, according to statistics released by Malaysia here the other day. In 2015, Malaysia’s trade

with China expanded by 11.1 percent to 230.89 billion ringgit ($55.67 billion), according to Malaysia’s international trade and industry ministry.

Exports to China recorded a double-digit growth of 10 percent to 101.53 billion ringgit ($24.48 billion). Higher exports were registered for manufactured goods which saw an increase of 10.2 percent.

Malaysia’s export of petroleum products, manufactures of metal, chemicals and chemical products as well as optical and scientiRic equipment to China had contributed to the higher trade Rigure.

Exports of electric and electronic (E&E) products accounted for 42.6 percent of Malaysia’s total exports to China. Exports of mining goods increased by 53.6 percent in 2015,

mainly thanks to signiRicant increase in exports of aluminium ores.

China remained as Malaysia’s largest import source with 18.9 percent of total share, expanded by 12 percent to 129.36 billion ringgit ($31.19 billion) with higher imports recorded for apparel and clothing accessories, machinery, appliances and parts, as well as transport equipment.

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Second delivery to Poland’s LNG terminal WARSAW: The Liquefied Natural Gas terminal in the Baltic port of Świnoujście, northern Poland, was on Monday receiving its second shipment of fuel from Qatar.

The Al Nuaman tanker was carrying 210,000 cubic meters of LNG. Unloading the fuel, needed to get the terminal up and running, is expected to take four days. Commercial deliveries to Świnoujście are expected to begin in the second half of 2016.

The Polish terminal received its first shipment of fuel from Qatar on 11 December.

The PLN 3 billion Baltic facility was built to allow Poland to diversify its gas supplies and reduce its dependence on Russia.

US commences importing goods from Iran he US has commenced importing goods from Iran since December 2015, restarting trade relations after more than two years, according to statistics released by the US Census Bureau show. The value of US imports from Iran in December 2015 stood at $10.8 million, said the Iran Daily News report. The breakthrough in Iran-US trade comes with the implementation of the Joint Comprehensive Plan of Action (JCPOA), a lasting nuclear deal between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany), it added.

Under the landmark nuclear deal, the US government has granted permission for the import of some Iranian products, including carpet and saffron.

Iran exported $2.2 million worth of goods to the US in 2013, while the

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Denmark’s Maersk container ship attacked in Nigeria

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amount in 2014 and in the first 11 months of 2015 fell to zero. The JCPOA, which officially came into force on January 16, has terminated all nuclear-related sanctions against Iran, added the report. Meanwhile, Head of the Iranian National Carpet Center has announced that the first shipment of Iranian handwoven carpets has been exported to the US. Hamid Kargar referred to the licensing of Iranian carpet exports to America as a result of JCPOA implementation adding “Iranian handwoven carpets have retaken the route to old and traditional markets and the first export shipment of the product was delivered in Los Angles through the port of Hamburg.”

He further asserted that over the past few years, our competitors have taken the lead managing to gain a good share of US carpet market; “according to the US customs statistics, India has become number one exporter of carpet to the Unites States,” he noted.—CB Report

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he Danish shipping giant Maersk has revealed that one of its container ships was attacked and brieRly highjacked off the coast of Nigeria.

The pirates later Rled the ‘Safmarine Kuramo’, which is based out of Singapore, after the Nigerian Navy responded to its emergency signal.

“We got a mayday distress call that the ship had been boarded by

an unconRirmed number of sea pirates after entering the nation’s territorial waters,” Captain Olusegun Soyemi, the executive ofRicer of the Nigerian Navy ship ‘PathRinder’, told Nigerian news outlet NAN. “We immediately dispatched a warship [‘Centenary’] and attack gunboats led by Navy Captain Chiedozie Okehie of the Eastern Naval Command to rescue the situation. The sea pirates, apparently upon sighting the advancing naval troops, Rled the scene in fear of being arrested by our operatives.”

The ship was on its way to dock at the city of Onne in eastern Nigeria

when it came under attack some 100 km off the country’s coastline. All of the ship’s crew – a total of 25 including the vessel’s captain – and its cargo were said to be unharmed and intact.

Meanwhile, DONG Energy has announced the largest Rinancial loss of any Danish company in the history of Denmark, reports Berlingske.

DONG posted a 12.1 billion kroner net loss for 2015, following a 5.3 billion loss in 2014. It took a massive hit in the form of an impairment loss of 15.8 billion kroner after tax – 14.8 billion of which was related to a reduction in its oil and gas reserve estimates and a general fall in price.

Thursday February 11, 2016

South Korea’s automobile exports decline outh Korea’s automobile exports nosedived at the fastest clip in more than six years in January as fast-falling oil prices dragged down demand from emerging markets, the government said Wednesday.

Outbound shipments of vehicles came to 201,967 units last month, down 18.8 percent from 248,613 units tallied a year earlier, according to the Ministry of Trade, Industry and Energy. The January figure marked the sharpest on-year drop since October 2010, when it posted a 22.1 percent dive in the aftermath of the 2008 global financial crisis, with its losing streak continuing for three straight months. It also sank 28.5 percent on-month from December’s 282,507 units. The total value of overseas shipments also tumbled 21.5 percent on-year to US$3.04 billion from $3.87 billion. “South Korea’s auto exports plummeted due to a slump in emerging economies in the Middle East and Latin America, stemming from a steep drop in crude oil and other commodity prices,” the ministry said in a release. Shipments to the Middle East region slumped 71.1 percent on-year last month, while those to countries in Central and South America slid 48 percent over the cited period. Domestic sales also retreated 6.8 percent on-year and 38.5 percent on-month to 123,379 units in January as an excise tax cut program finished at the end of the year, the ministry said.—CB Report

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India’s centre lays out plans to develop ports

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ith India possessing 7,500 km of coastline, the Centre has laid out its plans to develop ports that would kick-start economic development in these parts.

To increase economic activity, the Ministry of Shipping is organising a Maritime India Summit in Mumbai in April aimed at inviting investments in the shipping sector in India.

Speaking at an event organised

by ASSOCHAM in Chennai, deputy secretary, Ministry of Shipping, Krishnamoorthy, urged the business community in Tamil Nadu to participate in the summit and be a part of the growth of the shipping industry.

“The ‘Sagar Mala’ initiative is aimed at comprehensively developing the ports situated along the coastline. This initiative will happen in partnership with the Republic of South Korea, which has an advanced shipping industry,” he said.

He added that major developmental programmes include coastal

shipping of coal from Odisha to the southern States and creation of around 8 special economic ones across the Maritime States to promote port-led development.

“We have also set up a project to create port-based smart cities in Kandla and Paradip and free trade warehouse zones at Ennore and Cochin,” he said.

The government was looking to develop inland waterways, creeks and rivers to further boost the industry. “We are looking to double the capacity and efficiency of In-

dian ports. We are also planning to set up 2 mega ports and set up a transhipment hub to facilitate building, repairs and maintenance of vessels,” he said.

He added that India already had a cargo traffic of more than one billion tonnes per annum and the container trade was growing at 6.4 per cent, much higher than the global average of 5.4 per cent in the last decade. “To enable this, we have allowed FDI up to 100 percent in the sector and one-time trading licenses for vessels.

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Faisalabad ASO recovers 750 smuggled watches FAISALABAD: Anti-Smuggling Organization (ASO) Faisalabad recovered foreign origin (China) watches during a crackdown. The market value of seized watches is worth Rs 318750. Sources informed Customs Today that Deputy Collector Muhammad Falik Shair received credible information about somuggling of watches. He immediately constituted a raiding team comprising Muhammad Javed Mehmood (superintendent), Sardar Muhammad (deputy superintendent), Masood Saeed Chohan, Abdul Jabbar (inspector) and Hafiz Naseer Ahmed, Muhammad Ashraf and Naeem Ullah (sepoy).

Thursday, February 11, 2016

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Multan Customs settles audit observations against Roomi Fabric MULTAN IMRAN ALI

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he Model Customs Collectorate has settled audit paras against Roomi Fabric after the submission of necessary record. According to the details, Multan Customs audit department formed audit paras against the company after scrutiny of the record pertaining to the Duty Taxes Remission on Export (DTRE) facility. The company is availing the facility of DTRE on import of cotton for manufacturing of the furnished goods.

The said DTRE user presented comprehensive detail of import fabric before the audit department, which removed all objections raised in audit after examining of record, as the Multan Customs did not Rind any discrepancies yet.

Meanwhile, The Regional Tax OfRice of the Federal Board of Revenue (FBR) has collected Rs 2,067 million withholding taxes in January.

According to details, the FBR has decided to devise efficient plan to collect withholding tax from non-filers. The RTO has also decided to conduct frequent audit of the withholding agents to ensure

correct deduction and collection of withholding tax. The FBR has also directed the field formations to inform about their collective efforts

in this regard. This decision has been taken to develop ”Withholding Tax Audit Plan” for the remaining two quarters of the on-going

fiscal year. After newly issued instructions of FBR about ”Withholding Tax Audit Plan”, the RTO Multan would identify the areas

where is a leakage of revenue through non-deduction, short-deduction or late deposit of tax by the withholding agents.

Finance Ministry to release Export Development Fund every year ISLAMABAD

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he Finance Ministry has agreed in principle to release the amount collected in Export Development Fund (EDF) to the Ministry of Commerce (MoC) on yearly basis.

These funds will enable the Ministry of Commerce to further enhance export promotion related activities like road shows, exhibi-

tions and others in foreign countries. Sources at the Finance Ministry told Customs Today that Finance Minister Ishaq Dar, the chairman of Cabinet Committee on Production and Exports, had approved a proposal of the Ministry of Commerce to provide funds on yearly basis. The Finance Ministry collects up to Rs 6 billion per year under the EDF and the accumulative collected amount has exceeded to Rs 30 billion and the Ministry of Commerce had been demanding the release of this amount but the Finance Ministry had been hindering its release on

one reason or the other.

The source said that the blockage of these funds to ministry of commerce had been affecting the export promotion related activities of the ministry of commerce, therefore, Minister for Commerce took up this issue with Prime Minister in a recent meeting, who asked Finance Minister to look into this issue. Finding soft corner from the Prime Minister and Finance Minister the MoC included this proposal in the Strategic Trade Policy Framework 201-18 (STFP2015-18). Finance Minister Ishaq Dar reviewed the draft of STFP-

2015-18 at the forum of Cabinet Committee on Production and Exports and then in principle granted approval to the said proposal.

The source further said that after approval from the cabinet committee the draft of STFP-2015-18 had been at the table of Prime Minister waiting for approval. Once the Prime Minister will grant approval to this draft, the long awaited trade policy to be enforced.

Moreover, release of amount under EDF will also result in enhanced volume of Pakistani exports which are experiencing decline in the current Riscal year.

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This is why Prime Minister accorded approval to the said proposal moved by Commerce Minister. Meanwhile, Federal Finance Minister Ishaq Dar has appreciated both the sitting and former team of the Federal Board of Revenue (FBR) for making untiring efforts to achieve the revenue targets.

In this regard, he mentioned that the FBR had collected Rs 785 billion in second quarter of the current Riscal year and thus revenue collected in the Rirst half of the Riscal year was Rs 1,385 billion and there was 18.2 percent rowth in tax collection.