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pAKIStAN’S fIRSt INDepth NeWSpApeR oN cuStoMS
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Karachi, Wed February 14, 2018
KARACHI
IMRAN K AWAN
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n the directions of Chief Collector South Abdul Rasheed Shaikh, the Customs Port Qasim has sought information about the importers and relevant details to broaden the investigations into the shipping company M/s MSC in acetic anhydride
smuggling scam, Customs Today has learnt. According to the details, the Customs Investigation Unit (CIU) of Port Qasim Collectorate has taken this initiative after obtaining prior approval from Chief Collector Appraisement South and Collector Port Qasim Chaudhary Jawaid because it has surfaced in the investigation that the approximately 24 tonne of acetic anhydride was being tried to be smuggled by using the name of a fake importer
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company M/s Pak Traders from Peshawar. When customs ofOicials tried to locate the ofOice and management of M/s Pak Traders they found nothing on the ground which proved that the company was fake and existed just on papers. “We have found nothing about the importer even we have checked the record from recent pas but no import was found related to M/s Pak Traders that’s why now we have only one way to carry the investigations forward and that’s shipping company that transported the acetic anhydride’s consignment from Poland to Karachi port” an ofOicials told Customs Today on the condition of anonymity.
Customs Islamabad impounds items valued at Rs150 million
Surriya Butt to revise Valuation Ruling No: 713/2015 on March 26, 2018
Customs Preventive posts 38pc growth in duty, taxes in seven month
Industries Minister for enhancing bilateral trade ties with Bosnia
Customs Faisalabad impounds items & loaders valued at Rs 24 million
ASO Islamabad seized worth Rs150million of smuggling goods | See pAge 02 |
DG Customs Valuation has decided to revise the VR No: 713/2015 on March 26 | See pAge 03 |
Customs Preventive has collected Rs 6,647 million all duty and taxes | See pAge 04 |
Jatoi on stressed the need for enhancing bilateral trade and investment relation | See pAge 14 |
ASO Faisalabad has seized the contraband goods worth Rs24m | See pAge 16 |
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Customs Export does extra value of Rs1044m business Wednesday, February 14, 2018
ISLAMABAD: The 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.
Islamabad
customs Islamabad impounds items valued at Rs150 million
ISLAMABAD
ISLAMABAD
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he Air Freight Unit (AFU) Islamabad is facing an expected shortfall of Rs57million revenue under the head of CD during January FY17-18 against an assigned revenue collection target. According to details explained by oďŹƒcial sources of the Air Freight Unit (AFU) Islamabad that it was already expected from the beginning of the month of January FY17-18 when a high target was assigned which underlay failure. During the month of January FY17-18, the AFU received a revenue of Rs218.56million against an allocated revenue target of Rs275.50million as CD. The AFU showed -21% decrease in the revenue performance against an assigned revenue target for the month of January FY17-18. The AFU earned Rs6.8million extra revenue during January FY17-18 against an earmarked revenue collection of CD during corresponding January FY1617. It recorded 3% increase in the revenue collection against said previous period, sources said. Sources told CT that the AFU collected extra revenue of over Rs200million as Customs Duty during 2nd Quarter Fiscal Year 2017-18 against an assigned revenue collection target.
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he Anti-Smuggling Organization Islamabad seized worth Rs150million of smuggling goods during Oirst seven months of FY2017-18 against the corresponding period of FY201617. According to details explained by Majid Hussain Gadd, Assistant Collector, Anti-Smuggling Organization (ASO) Islamabad, that, during Oirst seven months of FY17-18, the ASO Islamabad impounded smuggling goods valued at Rs266.18million whereas it conOiscated goods worth Rs115.81million during the previous period of FY2016-17. Assistant Collector told CT that, during Oirst seven months (July to January) of FY17-18, the ASO Islamabad registered 52 seizures of smuggling against the corresponding period. The ASO registered 271 cases of smuggling in the Oirst seven months of FY17-18 while it did 219 smuggling cases during Oirst seven months of the last FY16-17. He told CT that the newly appointed Ch ZulOiqar, Collector MCC Islamabad, has a vast experience in Preventive Department so he is expected to demonstrate outstanding performance during upcoming quarter of FY17-18. The ASO Islamabad showed brilliant performance by impounding offending and Non-Duty-Paid vehi-
high allocated customs Duty target underlies shortfall of Rs57m
cles during FY2017-18 against corresponding FY16-17. The ASO Islamabad took into possession worth Rs276.56million’s vehicles during Oirst seven months of FY17-18 while it impounded vehicles priced at Rs217.94million during the previous FY2016-17. Meanwhile, The Customs Car Cell of the MCC Islamabad took into possession 10 NDP luxury vehicles during Oirst seven months of FY17-18 valued at Rs61million. According to details given by Majid Hussain Gadd, Assis-
tant Collector Car Cell of Model Customs Collectorate (MCC) Islamabad, that, during Oirst seven months (July to January) FY17-18, the Car Cell showed satisfactory performance by impounding Non-Duty-Paid luxury vehicles within the jurisdiction of the MCC Islamabad. The Gadd told CT that the vehicles taken into possession during above said period include Toyota Hilux Surf, Model 1995, priced at Rs2.41million, Toyota Hilux Surf, Model 1998, worth Rs2.65million,
and Toyota Corolla-G, Model 2005, valued at Rs1.89million. The more vehicles impounded are NDP Toyota Land Cruiser, Model 2005, priced at Rs10.90million, Honda Inspire, Model 2005, worth Rs2.39million, Toyota Land Cruiser, Model 2011, valued at Rs12.90million, Toyota Land Cruiser, Model 2013, worth Rs14.44million, Toyota Land Cruiser, Model 2003, priced at Rs6.80million and a Toyota Mark-X, Model 2005, valued at Rs7.84million.
parties seek time for more arguments in a case filed by Mcc Islamabad
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ISLAMABAD
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he Islamabad High Court Division Bench dated in ofOice the hearing after the parties submitted record and sought time for more arguments in a case Oiled by Model Customs Collectorate. The IHC Bench, comprising of Justice Athar Minallah and Justice Miangul Hassan Aurangzeb, earlier dated in ofOice the hearing.
The bench also directed the counsel from the respondent to ensure presence on the next date of hearing for Oinal arguments. Earlier, the bench had relisted the matter for rehearing during the next week along with other similar cases. Collector Customs had filed the case against Nusrat Yaqoob. The matter was pending with the court since 2014. Meanwhile, the bench also dated in office the hearing in the cases submitted by M/s Pakistan Tobacco Company Limited.
The bench also heard another tax matter filed by M/s Pakistan Tobacco Company Limited. The appellant had challenged a show cause notice issued by the Large Taxpayers Unit Islamabad. M/s Pakistan Tobacco Company Limited had contested the show cause notices issued by the field offices of the Federal Board of Revenue. M/s Pakistan Tobacco Company Limited had challenged the recovery of outstanding Sales Tax by the LTU Islamabad.
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Customs Court seeks charge sheet against suspects in tax evasion cases KARACHI: The Customs Court has sent two suspects namely Ahmed Mirza, head (CSD) M/s AICT and Mehdi Sherwani, Manager (CSF-Shed) M/s AICT to jail on judicial remand and directed the investigation officer to submit a charge sheet against them. The suspects were booked in three mega tax evasion cases. During the hearing, the investigation officer of Collectorate of Customs Appraisement West produced the suspects before the court and submitted that customs officials approached to M/s AL-Hamd International Container Terminal, Karachi, where the containers were landed.
court approves physical remand of accused booked in hSD oil smuggling
Wednesday February 14, 2018
Karachi
Surriya Butt to revise Valuation Ruling No: 713/2015 on March 26
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he Customs Taxation & AntiSmuggling Court Judge Syed Faiz Rasool Rashdi sent suspect namely Abdul Gaffar son of Abdul Sattar to customs department on physical remand, who was booked in a case of attempting to smuggle non-duty paid 6,000 liters Iranian High Speed Diesel Oil. During the hearing, investigation officer produced the above mentioned suspects before the court and submitted that on a credible information, a team of Marian Wing Pakistan Coast Guard intercepted a boat namely AlBarkat Boat and recovered 6,000 liters HSD Oil, during the search, suspect was asked to produce lawful documents of above HSD Oil.
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Shc adjourns construction vehicle import case KARACHI
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he Sindh High Court has set Feb to decide controversy over nature of construction vehicle, dumper truck, import. An appellate bench, comprising Justice Munib Akhtar and Justice Mrs Ashraf Jahan, earlier heard Ms Dil Khurram Shaheen advocate who informed the bench that off late, the department has vacated show-cause notice. She contended that petitioner has not violated the import policy order. The bench at this stage referred to a case law commonly known as Burki judgment and said the imported construction vehicle shall not be more than 5 years old. The counsel for department in defence maintained that the vehicle shall accompany pre-shipment inspection certificate.
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irectorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 713/2015 on March 26, 2018, it is learnt. Director General Surriya Butt has said the department was reviewing suggestions from importers to set new prices of energy drinks HS Code 2202.1010. She said some valuations, issued in 2015, were being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international markets. Sources said that a petition was submitted by the importers to Customs Valuation in which change in prices of Energy drinks HS Code 2202.1010 was requested. Sources further said the Valuation Ruling No: 713/2015 was issued on February 2, 2015. A meeting was held with the stakeholders on January 30, 2018. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained. Meanwhile, The Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling
No: 788/2016 on March 23, 2018, it is learnt. Director General Surriya Butt has said the department was reviewing suggestions from importers to set new prices of porcelain wares. She said some valuations, issued in 2016, were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international markets. Sources said a petition was submitted by the importers to the Customs Valuation in which change in prices of porce-
Sources told that a petition was submitted by the importers to Dg customs Valuation in which change in prices of energy drinks hS code 2202.1010 was requested
Ahmed Brothers moves Shc for restoration of NtN
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KARACHI
M B RANA
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he Sindh High Court (SHC) has issued notices to the customs ofOicials and deputy attorney general, directing them to Oile their respective para-wise comments on a constitutional petition Oiled by M/s Ahmed Brothers (Private) Limited. In its petition, the company sought restoration of NTN blocked by customs authorities. A two-member
bench, headed by Justice Munib Akhtar, was hearing the petition. Earlier, counsel for the petitioner stated that it is engaged in the lawful business in the name and style of M/s Ahmed Brothers and never involved in any illegal activity. However, officials of the customs authorities issued a show cause notice and suspended its NTN without any legal formalities. The counsel argued that the company is seriously affected by the act of the customs officials
and has incurred losses in its business. Citing Chairman Federal Board of Revenue, Collector of Customs Collectorate Appraisement West, Deputy Collector of Customs Collectorate Appraisement West, Bond Custom House Karachi, the appraising officer of Customs Collectorate Appraisement West Bond Custom House Karachi as respondents, he pleaded the court to declare the act of the respondents as illegal, mala fide and arbitrary.
lain wares was requested. Sources further said the Valuation Ruling No: 788/2016 was issued on January 5, 2016. A meeting was held with the stakeholders on January 29, 2018. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of the known foreign manufacturers of the item in question through which the actual current value could be ascertained.
pak rupee gains value against dollar he Pakistani rupee on gained value against dollar in open market and interbank. As per the local money market, the dollar lost 10 paisas in open market for buying at 111.40 and for selling at 111.70, while it shed five paisa in interbank for buying at 110.30 and for selling at 110.50.
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FIA takes action against Bitcoin, OneCoin traders Wednesday February 14, 2018
Lahore
KARACHI: Federal Investigation Agency (FIA) has launched operations against the people dealing in the Bitcoin and OneCoin. According to the reports, a person involved in these cryptocurrencies’ business is already in custody. SBP (State Bank of Pakistan) has reportedly stated that both the digital currencies don’t come under the tax net, therefore, should be considered “illegal”. Another reason for FIA’s current action, as the original news infers, could be the cryptocurrencies’ involvement in the notorious Dark Web. Also known as the deep web, it is the center of the world’s darkest illegal activities involving pedophiles, murderers and terrorists.
customs Appellate tribunal reduces penalty from 20 to 10% in seized vehicle case LAHORE
SAJID NAWAZ
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ustoms Appellate Tribunal has modiOied the Order in Original (ONO) in seized vehicle case Oiled by the deputy director Intelligence and InvestigationFBR Lahore against Sajid Qurashi and others. Muhammad Shabbir Gujjar Member Judicial heard the case in details and passed the remarks that respondent has ready to pay the taxes and duties on reduction of redemption Oine so the penalty should be reduced from 20 percent to 10 percent and case is disposed off. As per brief history of case, the staff of Customs Intelligence and Investigation intercepted a Mazda truck. On demand, driver failed to produce legal documents regarding
NAB chief warns punjab bureaucracy hairman National Accountability Bureau Justice Javed Iqbal (retd) has said that some institutions in the Punjab are not cooperating with the anti-graft body. Speaking at a ceremony in Lahore the chairman said this attitude is inappropriate and will not be tolerated any longer. Issuing a stern warning to the Punjab bureaucracy, Justice Javed said if any such complain received again, the officers would face music. He advised them to be patriotic to the country and the nation. The statement from the NAB chairman comes at a time when top PML-N leadership is facing corruption charges in accountability courts. Nawaz Sharif, Maryam Nawaz, Captain Safdar and Ishaq Dar are facing corruption trial in Panama case. Punjab Chief Minister Shehbaz Sharif too was summoned by the NAB last month to answer in misappropriation in Ashiana Housing Scheme. –CB Report
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the legality of goods and same were seized under section 2 (kk) of Customs Act 1969. After show cause notice, adjudication proceeding were culminated and Order in Original (ONO) was passed with remarks that seized vehicle to be released to the owner after the payment of 10 percent redemption fine. The department aggrieved from the order and filed the appeal before the Customs Appellate Tribunal and produced all document those showing the illegality of goods and also present arguments that the ONO passed in mechanical fashion and earlier authority has ignored the fact of case. Order in Original is liable to set aside. On the other side the respondent/ owner of vehicle produce the record and show willingness in the payment of short paid duties and taxes if the fine is reduce.
customs preventive posts 38pc growth in seven months
LAHORE
M hAYAt
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he Collectorate of Customs Preventive has collected Rs 6,647 million all duty and taxes during the first seven months of the current financial
economic growth plays vital role in women empowerment: Shaista
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hairperson Women Parliamentary Caucus (WPC),Shaista Pervaiz Malik said women economic growth and availability of sustainable economic opportunities could play a vital role in widening the paths for women empowerment in a growing society. She said various aspects of women’s economic empowerment in Pakistan would be taking and their relationship with growth and development so that they could be able to do something for the betterment of
their lives. She said ,”We have taken a number legislative and policy measures that have lead to introduction of hundreds of schemes favouring and encouraging women to economically, socially and politically empower themselves in order to not only look after their and their family’s well-being but to also enhance their lifestyles while contributing towards the national development. Shaista said ,”As we all know, gender is associated with disparities between men and women in access to resources. –CB Report
year 2017-18. As per details, the Collectorate of Customs Preventive collected Rs 6,647 million under the head of customs duty against the proposed target of Rs 5,495 million set by the Federal Board of Revenue. Similarly, the Collectorate of Preventive collected Rs 1,1152 million on account of sales taxes during the period under review
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against the assigned target of Rs 8,415 million. On the other hand the Collectorate of Preventive collected Rs 5,690 million on account of withholding tax against the assigned target of Rs 4,840 million for the first seven months. Likewise the Collectoarte collected Rs 13.64 million on account of federal excise duty during the said period against Rs 179.50 million proposed target for the period. Overall the Collectoarte collected Rs 23,504 million duty and taxes during period under review. Sources told that Collector Customs Preventive Faiz Ahmad adopted a comprehensive strategy to recover outstanding dues from defaulter. He directed to use all available legal resources to recover outstanding tax amount from defaulters. Collector is optimistic that Collectorate will achieve revenue collection target of current Fiscal Year 2017-18.
fto hears appeal filed by Abbas corporation he Federal Tax Ombudsman (FTO) has heard an appeal Oiled by M/s Abbas Corporation (Private) Limited against Corporate Regional Tax OfOice (CRTO) until the next date. According to the details, FTO Consultant Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the Corporate Regional Tax OfOice (CRTO) had failed to release the tax refund of the last two years claimed by the company. He said that the RTO collected excessive tax during the last two years. He approached
the commissioner concerned many times for issuance of refunds but the CRTO ofOicials did not pay the refunds after the passage of reasonable time. At the end, the company decided to approach the FTO, seeking interference in this case. The counsel appealed the FTO advisor to direct the CRTO to clear the refund claims. The counsel further said that CRTO should refund the excess collection in wake of taxes by the end of Oinancial year but the situation is quite otherwise. Delay in issuance of refunds put burden on the taxpayers, he said. –CB Report
ADB delegation calls on punjab chief minister
A LAHORE
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Oive-member delegation of Asian Development Bank (ADB), headed by country director for Pakistan Ms Xiaohong Yang, called on Chief Minister Punjab Muhammad Shehbaz Sharif. On the occasion, progress on dif-
ferent projects started in collaboration with the ADB was reviewed. The meeting agreed to further extend mutual cooperation in different sectors including public-private partnership based projects. Speaking on the occasion, the chief minister said a number of development projects were being completed in collaboration with the ADB in different sectors in-
cluding irrigation and energy. He said that ADB was providing $500 million funding for irrigation and energy projects. “The ADB should provide development funds worth $1.5 billion every year for health, education and other sectors. Financial support of ADB for development schemes aiming at public welfare during the next five years in Punjab will be appreciated by
the government,” he added. He said that Greater Thal Canal and Greater Cholistan Canal projects would also be completed with the ADB funding and added that water reserves would be developed in the outback of Cholistan to save canal and flood water. The vast areas of Cholistan would be made green and cultivable through Water Resource Management Project.
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www.customsbulletin.com xcept Taftan and Ktaghar borders, the MCC Quetta has established customs stations along the international border of Iran to generate revenue and facilitate the business community. According to details explained by Ashraf Ali, Collector, Model Customs Collectorate (MCC) Quetta, while giving an exclusive interview to the correspondent of Customs Today, that different customs check-posts at various stations of the MCC Quetta demonstrated outstanding performance during Oirst seven months of current Fiscal Year 2017-18. The Collector Quetta told CT that Balochistan is the biggest province of the country where MCC Quetta has set up various customs houses at different locations under its jurisdiction. The staff of the MCC Customs remains busy 24/7 in collection of revenue for the exchequer of the country after thoroughly checking the legal consignments of import and export under the customs bylaws. The MCC Quetta takes all possible measures against smugglers and other illegal businesses via international borders adjoining to Balochistan.
Wednesday, February 14, 2018
He informed CT that Balochistan has over 930 kilometer long border with Afghanistan and about 731 kilometer with Iran. To promote and facilitate the legal business via international borders, the MCC Quetta has set up customs houses at different locations along the border and established various check-posts. The collector explained that, besides check-posts and customs stations, the MCC Quetta provides maximum facilities to importers and exporters despite the fact that it has to control and manage the difOicult and long border by discharging its duties efOiciently for generating a large amount of revenue for the national exchequer. Replying to a query, Ashraf Ali remarked that the customs check-posts of the MCC Quetta always performed admiringly. The MCC Quetta earned Rs4501million extra revenue during seven months (July to January) FY17-18 against the revenue collection of all heads during the corresponding Oirst seven months of FY16-17. He added that the Quetta Customs was assigned Rs9170million revenue target under all the heads for Oirst seven months of FY17-18 whereas the MCC Quetta collected Rs12210million. The Federal Board of Revenue (FBR) was assigned Rs3440million revenue collec-
tion target of Customs Duty (CD) for six months of FY17-18 while MCC Quetta received Rs4800million under the same head against the allocated revenue target. During the same period of previous FY16-17, the MCC generated Rs2600million as CD. The Collector further explained that the MCC Quetta got Rs5160million of Sales Tax (ST) during first half of FY1718 against the earmarked revenue target of Rs4210million. The MCC Quetta earned Rs3700million under the same head during corresponding FY16-17. During first half of FY17-18, the Quetta Collectorate generated Rs2700million as With Holding Tax (WHT) against an assigned target of Rs1360million whereas it was allocated Rs1180million revenue target of WHT during the same period of previous FY1617, he notified. Talking about the performance of the Anti-Smuggling Organization (ASO) Quetta, he said, during first seven months of FY17-18, the ASO impounded 431 nonduty-paid small and luxury vehicles priced at Rs435million while it took into possession 351 NDP vehicles valued at Rs267million during the same period of corresponding FY16-17.
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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
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Resilience of pakistani economy
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ccording to media reports, the World Economic Forum has put Pakistan ahead of India in terms of emerging economies of the world. This is the economic performance of a country which is marred by corruption, mismanagement and in most of the cases administrative failure. If you bring logic and reasons to your side, there is no way Pakistan should have better performance than the countries in the region. But in fact, Pakistani economy is resilient and independent, which wades not only through a sea of corruption, but also hostile government policies. The government had recently imposed regulatory duty on 700 items, including the raw material which increased the cost of production and made exportable items uncompetitive in the world markets. The Supreme Court has now reversed the government decision. Had the duty still been there, even then the economy would have survived. The World Economic Forum ranked India at 62nd in the list of emerging economies while Pakistan has been ranked at 26th and China at 47th. According to the Inclusive Development Index, Norway continued to be the Number 1 inclusively advanced economy of the world and Lithuania as the Number 1 of all emerging economies of the world.The index adopted various parameters to assess the ranking, which also included standard of living of the people, debt burden as well as the sustainability of the business environment. In a recently held annual meeting of the forum, the member countries were encouraged to shift their focus to inclusive development and growth models. The term gross domestic product has also become relatively ambiguous as it is measured on the basis of total income of a country without keeping into account the inequalities within the people. There are the people who are well-to-do and others who eke out a meager existence. Last year, Pakistan ranked 52, India 60 amongst the 79 emerging economies while China remained at 15. Keeping in view the current economic trends, it is hoped the country will improve its performance in the coming years. However, there is a need to launch programmes for capacity building of the policymakers who still could not come out of the past and have limited approach to take operational decisions.
potentials of shoes industry S
LAHORE
DR AftAB AfZAL
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hoe making is not mere an industry, but economy. However, the country could not utilize full potentials of this industry which can be the engine of growth for the overall economy. As a country of meat-eating nation, Pakistan produces high-quality leather in the world and its shoes industry has been picking up for the last many years. The population is growing and demand for shoes is also growing. The performance of only one industry can push the country into the list of the Oirst world economies. But the shoes manufacturers could not pace up with
modern trends and requirements as most of them are still using the age-old methods and primitive machinery. The country is the rising shoe market and is importing shoes from the United States, China and Italy. Illegal trade and smuggling of Vietnamese shoes are also growing which means the country has vast space and demand for new brands. Currently, all kinds of western and eastern brands are available at cheapest prices in the country and this is the business as usual. There is a need to inspire local shoes manufactures and entrepreneurs associated with the business. Many well-known manufactures and entrepreneurs have shut down their units in Pakistan and have
turned toward China to keep their business in running mode. A high tech state of the art leather institute under the supervision of the government is the need of the hour. A shoemaking institute in the government or the private sector will also be a source of inspiration for the shoes manufacturers. It is the time the manufacturers should focus on diversiOication of their products by enhancing their expertise in line with international trends. To engage the manufacturers of international brands in joint venture will also be a good idea to get expertise and technology. The share of Pakistani shoes brands in the international market is negligible. Unfortunately, the Pak-
istani leather manufacturers could not come out of the spell of their regional competitors. Unless they local manufacturers Oind space in the international market, they won’t be able to utilize their full potentials in the business. Turkey is comparatively a new entrant in the international market, but Turkish manufacturers diversiOied their products to enhance their sale. Pakistan is the livestock-rich country, but its leather exports fell to $0.92 billion in 2016-17 from $1.28 billion in 2013-14. But there is no use of exporting raw material as it will support the industry of other countries. Pakistan has the potential to become hub of shoes industry in the world.
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SHC allows 2 special customs reference applications in tanker detention case KARACHI: The Sindh High Court has allowed two special customs reference applications (SCRAs) filed by Oil & Gas Private Ltd in oil tankers’ detention case. The SCRAs were allowed by a SHC appellate bench comprising Justice Munib Akhtar and Justice Mrs Ashraf Jahan. The petitioner challenged the detention of oil tankers by Anti-Smuggling Organisation (ASO) which maintained that flash point of oil imported legally is above 60 while of smuggled is lower than that. The bench during hearing pointed out that as per new notification of the ministry concerned, the flash point determined at 54 and hence detaining the same is illegal.
pcA detects 12 cases of tax evasion during January
Wednesday February 14, 2018
National
Moc prepares monitoring system to check performance of trade officers
KARACHI
WAQAR AhMeD ANSARI www.customsbulletin.com
he Directorate of Customs Post Clearance Audit (PCA), showing excellent performance in January, detected 12 new cases of tax evasion. Talking to Customs Today, Directorate of Customs Post Clearance Audit (PCA) has detected duty and tax evasion of Rs 9.67 million allegedly by M/s Allia Traders Karachi, it is learnt. Official sources told that M/s Allia Traders Karachi imported a consignment of medical operation accessories under the PCT Heading 2408.2489 and got it cleared from the Port Qasim Karachi vide GDs on December 2, 2017 by paying customs duty at 8 percent after claiming a benefit of SRO 558/2007. The consignment was cleared through Examiner Munawwar Ali. However, the subject item is correctly classifiable under the PCT 2408.2458, attracting customs duty at 12 percent and income tax at 15 percent. So through mis-decla-
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he Ministry of Commerce (MoC) has prepared a monitoring system for trade ofOicers by dividing the stations into three broad categories. The monitoring system comprises quantiOiable performance evaluation standards, key performance indicators (KPIs) and station speciOic performance targets. The new monitoring system will be shared with the newly appointed trade ofOicers, who are at present undergoing necessary training before posting abroad. It will also be shared with TDAP and the foreign heads of missions. Sources at MoC told Customs Today that commerce ministry had devised a monitoring system in the light of directives of the prime minister on the eve of approval of the summary for posting of the trade ofOicers abroad. The sources said that stations which were engaged more towards trade diplomacy for bilateral and multilateral market access, or represent Pakistan’s economic interests at international organisations such as
the world trade organization (WTO) were placed in Category I While stations where both promotion and diplomacy activities were equally important were placed in Category II whereas stations at which the core activities are primarily driven by promotion of exports and investment are placed in category III. “It is necessary to divide the stations on such lines as the weightage
assigned to quantiOiable targets may be different due to the varying nature of work in each case,” the sources added. The sources said that points were assigned to each parameter based on its importance / weightage in the overall work of the trade ofOicer. The relevant authority that will evaluate the performance based on the given parameters has also been mentioned alongside. Similarly, the
sources said that speciOic targets for each station shall be assigned separately in the Annual Plan of each ofOicer, to: be approved by the Ministry of Commerce. The evaluation a trade ofOicers based on the above criteria shall be managed on a robust feedback mechanism which is being prepared by the Ministry of Commerce in consultation with Trade Development Authority of Pakistan (TDAP).
Shc removes regulatory duty from over 350 goods ration of classification, M/s Allia Traders Karachi evaded to pay Rs9.67 million. Sources told that the importer has violated the provisions of Section 48 (8) & (3B) of the Customs Act-1969, Section 7, 9 read with Section 62 of the Sales Tax Act-1990 and Section 150 of Income Tax Ordinance 2001 punishable under clauses (5) and 50 of Section 159(7) of the Customs Act-1969, Section 37 (5) of the Sales Tax Act-1990 and Section 142 of Income Tax Ordinance 2001 and Section 8-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of Sales Tax by the importers) and under relevant provisions of the Income Tax Ordinance 2001.
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he Sindh High Court (SHC) has declared a legal amendment, which had given the Oinance minister powers of imposing regulatory duty, unconstitutional and scrapped the duty levied on more than 356 items, putting the federal government in a tight spot. The decision carries far-reaching implications for the federal government and reinforces the principle of ‘trichotomy of power’ that the Supreme Court of Pakistan had enshrined in its historic August 2016 judgment. The SHC made the Supreme Court’s judgment the base for declaring the amendment to the Customs Act 1969 through the Finance Act 2017 unconstitutional. In the August 2016 judgment, the
Supreme Court had deOined the federal government as the federal cabinet plus the prime minister and barred the premier or any minister from unilaterally taking decisions in Oiscal matters. Import duty on eatables, luxury items raised by up to 350pc “Section 18(3) of the Customs Act 1969 as to the extent as amended by the Finance Act 2017 is declared to be ultra vires the Constitution and of no legal effect,” read the SHC judgment. In order to defeat the Supreme Court ruling, then Oinance minister Ishaq Dar had obtained these powers by inserting a clause in all the four Oiscal laws. The clause stated that the board (Federal Board of Revenue), with approval of the federal minister in charge, may by notiOication make changes in the tax rates. However, the SHC struck down the amendment to the Customs Act that had
been challenged by the affected parties after the FBR imposed regulatory duty on more than 356 goods in order to curb growing imports. The ruling also declared SRO 1,035 of 2017, issued in October 2017 in exercise of powers conferred by the amended Section 18(3) of the Customs Act, “ultra vires, of no legal effect and is hereby quashed”. The decision will cause a dent in the FBR’s rev-
enues for this Oiscal year as it had estimated receipt of a minimum Rs25 billion from the regulatory duty. However, the decision will help ease inOlationary expectations as the government had even targeted essential and food items to raise additional revenues. Imported food items, tyres, vehicles, garments, etc will get cheaper as a result of the court ruling. The SHC directed the FBR to refund the duty that the petitioners paid after the issuance of the SRO. But the court suspended its judgment for 30 days in order to enable any aggrieved person or party to appeal against the verdict. The court has upheld the principle of taxes and duties to be imposed only by parliament. “Those functions of the federal government that relate to the exercise of legislative powers cannot be conferred at all, ie, cannot be regarded as part of the designated functions,” said the judgment.
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Customs Tribunal orders handover of Hino truck to owner unconditionally Tuesday February 13, 2018
National Khawaja Adnan Zaheer to become new Member operations IR
LAHORE: The Customs Appellate Tribunal has ordered the release of a Hino Ranger Truck unconditionally that was impounded by the Deputy Director Customs Intelligence Multan. Muhammad Shabbir Gujjar, Member Judicial, heard the appeal in details and considered all the recorded arguments given by the appellant and the respondent. He decided the appeal with remarks that the department has failed to establish the charge framed on the appellant so the impounded vehicle is released unconditionally to its lawful owner.
fBR directs customs officers to forward deferred promotion cases to pM office
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ederal Board of Revenue (FBR) Member Operations Inland Revenue Khawaja Tanvir Ahmed will retire from service. Sources told Customs Today that the government offered him extension till May 2018 but he refused to avail the chance. After the retirement, he has planned to join the Federal Tax Ombudsman office as Advisor. Sources said that Member Information Technology FBR Khawaja Adnan Zaheer is likely to be appointed next Member Operations Inland Revenue. The Member Operations has served the FBR for more than three decades with dedication and he has been recognized as the honest officer. During his tenure as Member Operations Inland Revenue, he achieved revenue targets and mange successful operations relating to Inland Revenue. He supervised revenue collection measures by commissioners of all regional tax offices and Large Taxpayers Unit.
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teVtA to help pass-outs of driving course echnical Education and Vocational Training Authority (TEVTA) Chairman Irfan Qaiser Sheikh has said that TEVTA will help its 1000 pass-outs of Driving Course to get leased cars from banks on easy conditions. While talking to DIG Traffic Farooq Mazhar and SSP Traffic Police Athar Saeed at TEVTA Secretariat here on Monday, Irfan Qaiser Sheikh said, “After getting cars leased on conditions from banks, our youth will be self-dependent which is actually need of the hour.” He said that youngsters can earn up to Rs 25,000 to Rs 35,000 per month after getting registered with companies like Uber, Careem, Albairak and many others. –CB Report
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ederal Board of Revenue (FBR) directed ofOicers of Pakistan Customs Service to forward deferred promotion cases to Prime Minister OfOice with legal support. A notiOication circulated to all chief collectors of customs/directors general, all collectors/directors of customs, all additional collectors/additional directors of customs and all ofOicers (BS-19 to 20) of PCS posted in FBR (HQ) informed about the representation or appeal/review against the determination of Oitness for promotion by the central selection board and a letter issued by the establishment division on the issue. The establishment division through the communication stated
that the prime minister had observed that despite no legal support for review/representation as per proviso under Section 22(2) of the Civil Servants Act, 1973 various departments are forwarding review petition/representation. “It
is directed that at the time f communicating the reasons of suppression of deferment to any officer in terms of Para 9 of Revised Promotion Policy 2007, the ministries/division/departments concerned shall also inform such an
officer about the aforesaid statutory provision that no appeal/representation shall lie on the matters relating to determination of fitness of a person to hold a particular post or to be promoted to a higher post or grade,” it said.
Dry port Islamabad collects Rs7039m by considering 2,141 gDs during seven months T
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he Islamabad Dry Port Margallah entertained 2,141 Goods Declarations (GDs) of foreign origin goods during Oirst seven months of Financial Year 2017-18 while it earned Rs7039million under the head of all duties and taxes. According to details explained by recently appointed Wajid Zaman, Deputy Collector, Margalla Islamabad Dry Port (IDP), that the Oiled GDs of imported items at the dry port showed excellent performance. During the month of January, the IDP processed 344 GDs and generated revenue of Rs898.613million under all the heads of duties and taxes. He told CT that the IDP processed 351 GDs during the month of December FY17-18 and
received revenue of Rs3104.958million under the head of all taxes whereas the IDP entertained 231 GDs during the month
of November FY17-18 and collected Rs540.143million of revenue under the head of all taxes. Deputy Collector said the IDP en-
tertained 289 GDs of imported goods in October FY17-18 and earned Rs643.135million under the head of all taxes.
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Customs Adjudication-I acquits itself well by serving 14 notices on defaulter companies KARACHI: The Customs Adjudication-I showed an excellent performance in 30 days of January 2018. The adjudication has issued eight show cause and six final notices to defaulter companies in January. Sources told Customs Today on Tuesday that the Customs Adjudication-I has retrieved Rs5.88million from M/s Yasir Garments and Export Karachi. The company was allegedly involved in tax evasion. Sources told our reporter that Collector Customs Adjudication-I M Javed served a show-cause notice on the said company for allegedly causing the treasury a loss of Rs5.88million by way of mis-declaration of classification.
M/s floorissa tiles moves Shc challenging VR No 874/2016 KARACHI
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he Sindh High Court (SHC) has issued notices to the Customs Department and deputy attorney general on another constitutional petition filed by M/s Floorissa Tiles, challenging determination of customs values of “ceramic and porcelain tiles” over and above 12.5 percent of the Valuation Ruling No 874/2016 issued by Director General of Valuation. A twomember bench, comprising Justice Munib Akhtar and Justice Omer Sial, heard the petition. Earlier, counsel for the petitioner stated that it is engaged in import and trade of goods having description “ceramic and porcelain tiles”. It was informed by the Customs Department that Director General, Di-
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rectorate General of Customs Valuation, Customs House Karachi revised the values of goods under section 25 D wherein the DG had no jurisdiction to fix customs values of the subject good over and above 12.5 percent, the counsel said. Citing Chairman Federal Board of Revenue, Collector of Customs Collectorate West, Collector of Customs Collectorate East, Collector of Customs Collectorate Port Muhammad Bin Qasim and Director General, Directorate General of Customs Valuation, Customs House Karachi as respondents, the petitioner pleaded the court to declare the act of the respondents as illegal, mala fide and arbitrary. He also pleaded the court to restrain the customs department from collection of enhanced valuation till final decision of their petition and any coercive measures against the petitioner.
National
fBR develops system to improve tax collection from telcos, Senate body told
tax reforms, revenue collection growth top priorities, Miftah tells Bayley ISLAMABAD
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eforms in tax administration and growth in revenue collection are the top priorities of the government, Adviser to Prime Minister on Finance Miftah Ismail told British Prime Minister’s Special Representative for Afghanistan and Pakistan Gareth Bayley. British High Commissioner, Thomas Drew accompanied the visiting dignitary on the occasion. Matters related to Pak-UK bilateral relations and activities of Department for International Development (DFID) in support of government’s development plans and programmes were discussed during the meeting. Regional economic integration and cross border cooperation in the areas of trade and development also came under discussion. Adviser Miftah Ismail informed Gareth Bayley about the priorities of the government and stated that the PML-N government had made significant progress in the last four and a half years in the areas of peace & security, economic stability, energy sufficiency and social protection. He said in the remaining part of the tenure, the government would try to consolidate the economic gains made in the last four years and the reform process would continue during this period.
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n information technologybased mechanism has been developed by the Federal Board of Revenue (FBR) to improve revenue collection from the cellular mobile operators (CMOs). This was revealed by FBR Withholding Director General Mehmood Aslam while brieOing the Senate Standing Committee on Information Technology. “The new system will enable the government to plug loopholes in the existing tax collection system from the operators,” he added. The ofOicial briefed the committee members about the mechanism devised for tax collection including the general sales tax (GST) and withholding tax (WHT) from cellular operators. The committee spent the last six years trying to Oigure out if CMOs were overcharging their subscribers who are paying more money for less talktime. The members also have reasons to believe that the telcos are evading taxes, the FBR ofOicial said. The FBR, which lacked a mechanism to conduct audits of millions of subscribers’ transactional data,
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could not confirm these allegations. However, Mr Aslam clarified that the operators were not evading taxes. “However, there are certain new areas in which the FBR feels telecom companies have not paid additional taxes. It could be that the operators may have exemption certificates. We have asked operators to explain their position,” he added. The official elaborated that all four mobile phone companies are now required to upload their monthly customers’ transactional
data on the software utility portal. He explained that in order to analyse millions of transactional data of each cellular company on daily basis, FBR launched a pilot project by devising an IT-based mechanism to ensure effective monitoring of withholding taxes by the operators. “Out of the four, FBR conducted the forensic audit of one cellular company and found certain discrepancies. Due to lack of resources, FBR is unable to conduct simultaneous forensic audits of all companies.
pM Abbasi says govt to use cNIcs to broaden tax net
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rime Minister Shahid Khaqan Abbasi has said that Pakistan plans to use its national identity database to build proOiles of potential taxpayers in a renewed bid to broaden its tax base. In an interview with Bloomberg, a New York-based international news agency, he said the plan seeks to plug leakages, encourage correct property valuation, lower individual tax rates and offer an amnesty programme. The Bloomberg report pointed out that less than one percent of Pakistan’s population of 210
million pays taxes. Lenders including the International Monetary Fund (IMF) have repeatedly shown concern over Pakistan’s tax-to-GDP ratio of about 12%, which is among the lowest globally, the report said. In the past, it said attempts to force people to pay taxes have been met with resistance and strikes by businesses, while various amnesty plans announced – including one eight months ago – failed to boost revenues. Now Abbasi wants ofOicials to build taxpayer proOiles through the National Database and Registration Authority (NADRA), the report added. “We are Oixing the problem with a multi-pronged strat-
egy,” PM Abbasi was quoted as saying. “You can make money but you cannot hide expenditures. Your telephone bills, utility bills, foreign travels, credit cards spending tell you the whole story.” The Bloomberg report said Pakistan’s current account deOicit widened about 60% to $7.4 billion in the six months to December and foreign exchange reserves are deteriorating, prompting the Oinance ministry to raise $2.5 billion from global bonds and Sukuk in November. A month later, it noted the government allowed the devaluation of the rupee. The last tax amnesty plan resulted in just 0.3% of three million
traders registering with the tax authority before it was withdrawn in April, Bloomberg said. This time, the programme will encourage Pakistanis to account for their wealth with a fee of 3%, down from 10% previously, Abbasi said. In another step, the government will streamline property valuation to discourage investment in the sector to evade paying taxes. Abbasi, who became the premier in August after the Supreme Court disqualiOied his predecessor Nawaz Sharif, will have about Oive months to implement his initiatives before he hands over power to a caretaker prime minister in June, the report said.
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Nissan in talks to make electric cars and batteries in Thailand
World Customs
BANGKOK: Thailand’s government about producing electric cars and automotive batteries in the Southeast Asian kingdom, according to a senior executive at the Japanese carmaker. Yutaka Sanada, Nissan’s regional chief, said on Tuesday that Thailand was “keen to support investment” in electric vehicles and batteries, and that the carmaker and its competitors were seriously considering investing in the new technology there, primarily for export to other countries in the region.
Wednesday February 14, 2018
Switzerland & uS are the world’s most corrupt nations
S. Korean car exports drop 16.2 pct in Q4 SEOUL
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witzerland is the world’s most-corrupt country, with a “high secrecy score of 76.” It’s followed by the US and the Cayman Islands. The index ranks countries for the assistance their legal systems provide to money-launderers, and to all people who seek to protect corruptly-obtained wealth. The higher the secrecy score, the more corrupt the government is. In order to create the index, a secrecy score is combined with a Oigure representing the size of the offshore Oinancial services industry in each country. According to the report, the United States’ secrecy score (60) is rising, which results in attracting corrupt wealth. In 2013, the US was in the sixth place, and in 2015 it took the third in the rating. Cayman Islands, Hong Kong, Singapore, Lux-
Sugar import ban to continue in Iran ran will continue imposed ban on sugar import during the next fiscal year (to start March 2018), Jamal Modarresi, an official with the country’s agriculture ministry, said. Given the high volume of the stored product, as well as high sugar production in the country, Iran does not need to import sugar in the coming year, Modarresi told ISNA news agency. Earlier, in December 2017, Iran’s agriculture ministry banned sugar import till the end of the current fiscal year (March 2018) due to surplus supply. At that time, it was announced that Iran may temporarily lift ban by the end of current fiscal year, to meet the sugar demand for summer. Iranians consume around 2.2 million tons of sugar per year, Modarresi said, adding that there will be no need for imports due to planned output for current fiscal year. –CB Report
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embourg, Germany, Taiwan, the United Arab Emirates, and Guernsey closed out the top-10 most corrupt countries. The least corrupt nations among the 112 covered in the rating were San Marino, St. Lucia, St. Vincent and the Grenadines, and Montserrat. Meanwhile, Swiss Federal Council has agreed on the outline of the new tax reform package that will be presented to Parliament next month. The Council said that it agreed on the parameters for the
dispatch on tax proposal 17 (TP17) on January 31. The Federal Department of Finance has been instructed to prepare the dispatch by the end of March. Together with the dispatch, the FDF will also prepare an estimate of the Oinancial implications of TP17 for the confederation and the cantons. The Council explained that the agreed parameters are closely aligned with the proposals it presented for public consultation last September.
South Africans selling to emigrate at highest level since 2010
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outh Africans selling their homes to emigrate survey asks estate agents to provide estimates as to what the main reason for selling their homes is. One of the eight options is “selling to emigrate” The survey began in early 2008 when levels for selling to emigrate was at its highest – over 20%. Since then, there was a downward trend with another spike towards 2011. It was at its lowers level the Oinal quar-
ter of 2013, with just 2% of people listing emigration as a reason for selling. Emigration-related selling is arguably a good conOidence indicator when it comes to how middle to higher income households perceive the long-term economic and Oinancial future of the country, but also appears to have a strong cyclical component to it. We watched this estimated percentage peak at 20% in the 3rd quarter of 2008. –CB Report
verseas sales of South Korea-made passenger cars plunged sharply in the fourth quarter of 2017 from a year earlier due to a year-end adjustment of inventories, customs data showed The total value of passenger car exports reached US$9 billion during the October-December period, down 16.2 percent from a year earlier. The on-year dip marks the largest since the third quarter of 2016, when the comparable Oigure was 17.4 percent, according to the data by the Korea Customs Service (KCS). By volume, a total of 590,000 units were shipped overseas during the fourth quarter of last year, also down 23 percent over the cited period, the data showed. Exports to the United States and Saudi Arabia dipped, while shipments to Aus-
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tralia and Germany rose. Imports of passenger vehicles, meanwhile, surged 41.3 percent onyear to $3 billion during the threemonth period. For the whole of 2017, passenger car exports reached $38.1 billion, up 4.5 percent from a year earlier, while imports gained 3.7 percent to $9.6 billion over the cited period, the latest Oindings showed. Meanwhile, Korean cryptocurrency traders will no longer be able to trade cryptocurrencies like Bitcoin and Ethereum anonymously. Last week, major cryptocurrency exchanges in the local market including Korbit and Bithumb announced that starting Jan. 30, anonymous traders will be prohibited from investing in the market. Beginning today, investors are required to undergo a rigorous veriOication process to invest in the market. Kookmin Bank, the country’s largest bank, has also stopped providing virtual bank accounts to cryptocurrency exchanges.
Saudi pMI falls to record low measure of business activity in Saudi Arabia’s non-oil economy dropped sharply to a record low in January, as the implementation of a new value-added tax hit output and purchasing. The Emirates NBD Purchasing Managers’ Index fell from 57.3 in December to 53, the lowest reading in the survey’s history, as production and new orders slowed. Companies had boosted output and purchasing at the end of last year, ahead of the new tax, meaning the slowdown “is likely to be transitory,” Khatija Haque, head of Middle East and North Africa research at Emi-
rates NBD, wrote in the report. A reading above 50 indicates that the economy is still expanding, Bloomberg reported. Haque, head of MENA research, said: “The softness in the January PMI survey was fairly broad-based, with faster employment growth being the main highlight. Wage increases, fuel subsidy cuts and the introduction of VAT is evident in the higher input costs and staff costs components of the survey in January. However, Oirms were the most optimistic about their prospects in the coming 12 months than they have been since May 2017.” –CB Report
exports during organic winter season start more gradually
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n the Netherlands and neighbouring countries, the harvest results for outdoor vegetables particularly compared to the previous season are fairly high across the line. It will therefore be challenging to sell all product groups properly. How-
ever, according to Mtoto Keijzer, owner of Bioport, organic growers can be distinctive with quality and storage this years. Mtoto’s company works with a permanent group of organic growers from the Netherlands and Belgium. Bioport works directly from grower to customer, and the products are packed according to speciOications of the customer, and they also completely take care of
transport. They provide services to de-burden both buyer and grower as much as possible. In the Oield of sales, Bioport is mostly active for wholesalers, industrial processors, vegetable pack companies and packers for supermarkets within the EU. Each sector has its own speciOic requirements, which can differ per region. Netherlands, not counting some exceptions. Mtoto mentions
the sizes of many products are larger compared to last season. “The yields per hectare were good this year. However, because this is also the case elsewhere in Europe, particularly in the North, it will deOinitely be challenging to sell all product groups properly. Fortunately, most of the organic growers are well-equipped to store their products for longer periods.
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BIR files tax evasion complaints against 4 companies MANILA: The Bureau of Internal Revenue (BIR) has filed tax evasion complaints against four companies before the Department of Justice (DOJ). The BIR said it is going after Amberbase Solutions Leasing, Ambrose Industries, La Chilo Cuisine, Inc. and Power Generation of the Philippines (POWERGEN) for more than P181 million unpaid taxes. The bureau has filed tax evasion complaints against 125 companies under its run after tax evaders or rate program under the Duterte administration
Korea earned $200 million from banned exports orth Korea violated United Nations sanctions to earn nearly $200 million in 2017 from banned commodity exports, according to a confidential report by independent U.N. monitors, which also accused Pyongyang of supplying weapons to Syria and Myanmar. The report to a U.N. Security Council sanctions committee, seen by said North Korea had shipped coal to ports, including in Russia, China, South Korea, Malaysia and Vietnam, mainly using false paperwork that showed countries such as Russia and China as the coal origin, instead of North Korea. The 15-member council has unanimously boosted sanctions on North Korea since 2006 in a bid to choke funding for Pyongyang’s nuclear and ballistic missile programs, banning exports including coal, iron, lead, textiles and seafood, and capping imports of crude oil and refined
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chabahar port lures Afghan traffic away from Karachi KARACHI
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fghanistan has shifted 80% of its cargo trafOic from Pakistan’s Karachi seaport to Iran’s Bandar Abbas and Chabahar ports. The move comes two months after Chabahar, barely 100 kilometers from Pakistan’s Gwadar port, was inaugurated. The shift, prompted in part by a new trade tariff imposed by Islamabad, is expected to greatly reduce Pakistan’s role in the transit of Afghan goods. Pakistani business leaders believe that more Afghan trade will eventually shift to the strategic Chabahar Port, as it is Iran’s closest sea link to the Indian Ocean. The Oirst phase of Shahid Beheshti Port in the Sistan-Balochistan province was commissioned last year. It is expected that US$5 billion worth of Afghan trade will be conducted solely through the tripartite Chabahar Port – sponsored jointly by India, Iran, and Afghanistan – once it
starts feeding the International North-South Transport Corridor (INSTC). In mid-November last year, Afghan Chief Executive Abdullah Abdullah was quoted by the media as saying that Afghanistan was no longer dependent on Pakistan for the shipment of goods as it can now use Iran’s Chabahar Port for this purpose.
The current Oiscal year has seen a US$2 billion drop in trade with Afghanistan due to frequent border shutdowns, military skirmishes and the new trade tariff. The trade volume, which stood at US$ 2.5 billion in 2016, has gradually declined to US$500 million following the deterioration of relations between the South Asian neighbors.
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Iran ups exports to china by 25% he value of Iran’s exports to China as its top trading partner witnessed a 25.2 percent rise compared to 2016, a senior trade official announced. “Iran’s major commodities exported to China last year included crude oil, polyethylene, methanol, sulfur, styrene, iron ore, copper ore, purified copper, chromite, lead ore, zinc ore, marble and travertine,” Hossein Roustayee, an official with the Trade Promotion Organization of Iran said. He noted that the value of trade balance between Iran and China hit $18.58 billion in 2017. China is Iran’s biggest trade partner. The latest Islamic Republic of Iran Customs Administration’s statistics show China exported 3.8 million tons of commodities to Iran worth $10.22 billion in the first 10 months of the current fiscal year (March 21, 2017-January 20, 2018). Imports from China saw a rise of more than 5% in weight and 21% in value in the 10-month period. –CB Report
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china exports up as commodities base effects imports petroleum products. “The DPRK (North Korea) is already flouting the most recent resolutions by exploiting global oil supply chains, complicit foreign nationals, offshore company registries and the international banking system,” the U.N. monitors wrote in the 213page report. The North Korean mission to the United Nations did not immediately respond to a request for comment on the U.N. report. Russia and China have repeatedly said they are implementing U.N. sanctions on North Korea. The investigation has shown “further evidence of arms embargo and other violations, including through the transfer of items with utility in ballistic missile and chemical weapons programs,” the U.N. monitors wrote. –CB Report
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hina’s overseas shipments held up despite trade tensions with the US, while import growth surged reOlecting calendar effects and higher commodity prices. Exports rose 11.1% in January in dollar terms from a year earlier while imports increased 36.9%, leaving a $20.34bn trade surplus, the customs administration said on Thursday. Economists said the data may be distorted by a later Lunar New Year holiday compared with last year. External demand has remained intact amid a synchronised global expansion, helping to offset the yuan’s continued surge. Still, the world’s largest exporter faces uncertainty: Trade friction between the two biggest economies has ratcheted up recently, with China probing sorghum im-
ports from the US after the Trump administration slapped tariffs on solar panels and washers, which Beijing called a “misuse” of trade measures. After climbing to a two-year high this week, the yuan sank the most since August 2015 after release of the trade data and a Reuters report on potential loosening of curbs on outbound Olows. A narrowerthan-expected trade surplus is seen as reducing demand for the currency. Export growth remained robust in January, indicating steady global demand momentum,” Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong, wrote in a report. “While we expect the favorable external setting to continue to support China’s exports, rising USChina trade friction remains a key risk.” The trade surplus with the US narrowed to $21.9bn as exports rose 12.7% and imports surged 26.5%. That followed a US Commerce De-
partment report this week showing the trade gap in goods with the Asian power surged 8.1% last year. China imports more from the US than their shipments to the US. As the trade tension of the two biggest nations intensiOies, this Oigure is timely,” said Raymond Yeung, chief greater China economist for Australia & New Zealand Banking in Hong Kong. “The Chinese side is expected to use this number to show their effort to narrow the trade gap.” Friction will likely intensify this year, but a trade war is unlikely, according to UBS economist Wang Tao in Hong Kong. “Targeted tariffs and restrictions may hurt related stocks or sectors, but the macro impact on China’s exports or gross domestic product growth will be very small as a stronger global recovery helps to drive 2018 export growth,” she wrote in a recent report. Don’t read too much into China’s surging im-
ports and above-expectation exports,” Bloomberg economists Tom Orlik and Fielding Chen wrote in a note. The numbers reOlect distortions around Chinese New Year andin the case of imports-continued gains in oil prices.” Calendar effects likely reduced activity in January 2017. The week-long Lunar New Year holiday began on January 27 last year, but this year’s doesn’t start until February 15. More working days would definitely have an impact,” Gai Xinzhe, an analyst at Bank of China’s research institute, referring to the holiday shift. Though the yuan is getting much stronger against the dollar, its overall rates against other currencies are relatively stable, which could explain why exports data are better than expected. Trade data in the first two months are extremely volatile and it’s better to look at the first quarter data.”
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Punjab govt give farmers 110,000 smartphones Wednesday February 14, 2018
Business
MULTAN: The Punjab government will distribute smartphones among 110,000 farmers after they receive their interest-free agriculture loans to enable them get proper guidance swiftly on the palm of their hands, agriculture spokesman said in a statement. Small farmers will benefit from this initiative in a big way as the smartphones would display agriculture related information to them within no time and would be helpful from sowing to harvest of crops, local weather updates, crop marketing.
Jatoi for enhancing trade ties with Bosnia ISLAMABAD
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ederal Minister for Industries & Production Ghulam Murtaza Khan Jatoi stressed the need for enhancing bilateral trade and investment relation between Pakistan and Bosnia for economic development and prosperity of both the countries. Talking to Ambassador of Bosnia and Herzegovina, who called on Federal Minister here, the minister said that this visit was reflective of the increasing ties between Pakistan and Bosnia and will certainly provide impetus to further expand bilateral relations
IRSA releases 82,600 cusecs water KARACHI
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in various sectors. The minister said that continuity of economic policies not only
our mission will support pak business initiatives: Iranian envoy
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he Indus River System Authority (IRSA) released 82,600 cusecs water from various rim stations with inflow of 35,900 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1428.45 feet, which was 48.45 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 18,900 cusecs and outflow as 44,100 cusecs. The water level in the Jhelum River at Mangla Dam was 1095.30 feet.
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reflected maturity but would also help restoring confidence of the business community on the eco-
nomic policies of the government. Highlighting the upward economic growth in the country, the minister said that there were huge economic opportunities existing in different sectors of national economy and called upon the Ambassador for exploring that opportunities. The Ambassador appreciated the steps being taken by the present government towards improving law and order and putting in place a business friendly environment in the country. The ambassador invited Federal Minister for Industries and Production to Bosnia for trade fair which is to be held from April 2628, 2018.The minister said that Pakistan would participate in the event after consulting all the relevant stakeholders.
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Consulate General of Islamic Republic of Iran here will welcome and support any initiative and cooperation from Pakistani business community, especially of Sindh, and will play an active role in exchange of information on trade and investment avenues on both ends. “One of my key duties here, is to facilitate and develop political, economic, trade, academic and cultural relations and cooperation between
Iran and Pakistan, specially development of trade relations with province of Sindh. Therefore, all the efforts of my colleagues are dedicated to facilitate access to each other’s markets,” said Consul General of Iran in Karachi, Ahmad Mohammadi. Iranian Consul General was speaking at a reception hosted by him to celebrate 39th anniversary of victory of Islamic Revolution of Iran, here at the Consulate. Many business, political and social personalities, besides media and diplomats from different countries attended the function, said press
release here on Monday. Being the Consul General of Islamic Republic of Iran, he offered his best compliments, on the occasion of 39th anniversary of the victory of the Islamic revolution, to Hazrat Ayatollah Khamenei, who brought revolution, and Iranian President Dr. Hasan Rouhani, and all Iranians particularly those living in Pakistan. As a diplomat in Karachi for last one year, Ahmad Mohammadi recalled, he enjoyed a very good stay: having very friendly relations with SindhGovernment functionaries specially with Sindh Governor.
pakistan rice export touches $1.06 billion KARACHI
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ice export from Pakistan has seen significant growth and crossed dollars one billion by the end of January since July 2017 showing increase of 29 percent in value and 15 percent in quantity. In a statement, the Senior Vice Chairman, Rice Exporters Association of Pakistan (REAP), Rafique Suleman said that Pakistan exported total 2.28 million metric tons of rice worth dollars 1.06 billion in last seven months, whereas in the same period of last fiscal year the figure was 1.971 million metric tons amounting to $.820 million. ‘We have come out of the crisis. REAP members were making their untiring efforts and doing aggressive marketing to increase the rice exports and to earn valuable foreign exchange for our beloved country Pakistan,’ he re-affirmed. He was very much hopeful that this year the set target to export more than 4.0 million metric tons of Pakistani rice and would earn dollars 2 billion. REAP had also focused on European countries. Due to the excessive pesticide residue found in Indian rice, she would loose European countries markets. It was a good opportunity for Pakistani rice exporters to grab EU market.
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Drive against illegal use of power intensified: pesco PESHAWAR
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hief Executive Peshawar Electric Power Supply Engr Zakaullah Khan Gandapur said Monday that drive had been accelerated against illegal use of electricity in the province. In this regard, he said Pesco Mardan-1 Division teams along with Pesco police, checked various prem-
ises in the jurisdiction of Mardan Cantt, Toru, Gujar Ghari subdivisions and nabbed six more persons including Wahid Shah, Nasar, Naveed, Amin, Munsif shah and Habib on the spot using direct connections. Chief Executive Pesco has directed all the Oield formations to speed up drive against illegal use of electricity and direct hooks. He said PESCO had once again warned to stop power pilferage in the larger interest of the nation, due
to which PESCO had to face Oinancial losses on one hand and on the other
hand PESCO’s whole distribution system gets overloaded. As a result,
the general public faces the inconvenience of frequent power breakdowns, he added. Meanwhile, PESCO had advised customers to adopt all precautionary measures during winter rains and not to touch cables and poles. It said public must adopt all safety measures which include, to properly “earthen” your electrical appliances and replace or tape all worn out wires and not to touch electrical appliances, cables with wet hands.
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IBM shares cross 4% yield mark NEW YORK: Looking at the universe of stocks we cover at Dividend Channel , in trading on Thursday, shares of International Business Machines Corp (Symbol: IBM) were yielding above the 4% mark based on its quarterly dividend (annualized to $6), with the stock changing hands as low as $149.85 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF ( SPY ) back on 12/31/1999 – you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years.
Leaders demand separate amnesty schemes for local & foreign pakistanis
Wednesday February 14, 2018
Chambers
Australia supports pakistan efforts to increase regional trade
ISLAMABAD
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uhammad Naveed, Senior Vice President, Islamabad Chamber of Commerce and Industry has called upon the government to focus on introducing separate tax amnesty schemes for local and foreign Pakistanis that would enable them to declare their hidden assets and bring more capital within the country for business and investment activities. He said Pakistan was facing record high trade deficit while the exports of the country were not improving for the last many years due to which the financial resources of the country were under great pressure. In these circumstances offering attractive amnesty schemes to local and foreign Pakistanis
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could be a good move to declare hidden assets and bring more capital in the country to improve the economy. He said such amnesty schemes will also promote documentation and contribute to broaden the tax base of the country as well. Muhammad Naveed said that in Pakistan tax rates were quite high which were discouraging tax culture in the country. He stressed that in the forthcoming budget, government should reduce tax rates to single digit level that would help in promoting tax culture, expanding tax net and improving tax revenue of the country as with reduced tax rates, people would willing pay tax to the national exchequer. He said government should also bring tax reforms to make taxation system of the country simplified and easy to comply for a common taxpayer. Ch. Abdul Rauf, former President, Islamabad Estate Agents Association emphasized that tax amnesty scheme should help in accelerating the economic growth through production and utilization of hidden liquid assets in the manufacturing activities.
RAWALPINDI
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he Rawalpindi Chamber of Commerce and Industry (RCCI) has organized a session titled Coffee morning for bringing awareness, discuss issues and an interactive question and hour session on women economic empowerment here. Australian High Commissioner to Pakistan, Margaret Adamson, who was chief guest on the occasion, said the Australian government supports Pakistan’s efforts to increase regional trade and investment. “The lives of Pakistani women are changing rapidly. It will be vital for a prosperous Pakistan to facilitate an environment which provides enough economic opportunities to engage women. She said the Australian Government was actively exploring avenues for increased skills development and opportunities for women’s entrepreneurship in Pakistan. She lauded RCCI for establishing Women Business Incubation Center (WBIC) to help women entrepreneurs to establish and run their own businesses. She assured
her full support and cooperation in this regard. RCCI Chief Zahid Latif Khan in his address said that creating opportunities and empowering women in entrepreneurship has always been chamber’s priority. The main purpose of this initiative was to provide women a platform to excel in the Oield of entrepreneurship, he added. While highlighting key activities of RCCI, Zahid Latif said recently we organized All Pakistan Women Presidents Chamber Sum-
mit to highlight various issues particularly being confronted by the business women including the importance of unity and cooperation between the women chambers for nation building. He said, RCCI being a pro-active business facilitation entity, believed in identifying and functionalizing such forums for women entrepreneurs to get into the main stream of the economy. President thanked the participants of Coffee Morning and said that an active par-
LccI delegation moves to Malaysia LAHORE
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ll out efforts would be made to enhance Pakistan’s share in Malaysian imports of 163.4 billion. These views were expressed by the LCCI President Malik Tahir Javaid while speaking at a dinner hosted by Pakistani High Commissioner in Malaysia Nafees Zakaria in honor of the LCCI delegation that moved to Malaysia from successful Indonesian visit. The LCCI president said that Pakistan and Malaysia have close and cordial relations since long and this relationship is growing and strengthening with the passage of time but this should be reOlected in mutual trade and economic ties. He said that Pakistan’s major exports to Malaysia are cereal, textiles
and clothing, rice, vegetables, seafood (fresh, chilled and frozen), chemical and chemical products whereas major imports from Malaysia are palm oil, chemical products, electrical and electronic products. Other exports from Pakistan to Malaysia include Oish, potatoes, onion, maize, cotton yarn, woven fabrics, synthetic staple Oibre, bed-linen, electrical apparatus for line telephony and parts and accessories, whereas other imports from Malaysia are rubber, wood, synthetic Oilament yarn, insecticides, automatic data processing machines and parts and accessories. He said that China, Singapore, Japan, USA, Thailand, South Korea and Indonesia are the major trade partners of Malaysia. It is a bit discouraging that Pakistan is not in this list despite good relations with Malaysia and having
best-of-the-best products in the world. He suggested establishment of display center for Pakistani products in Pakistani embassies abroad to grab the attention of foreign buyers. The LCCI President said that the balance of trade has always been in favour of Malaysia and this situation is prevailing. Over the last five years this gap is constantly closing but still the total imports from Malaysia are six times of our exports to Malaysia. He said that Malaysia and Pakistan have already signed a Free Trade Agreement which came into effect in January 2008. It has to be taken seriously that we have failed to take some advantage of this FTA. It provided us good platform to be utilized for a win-win situation but Pakistan achieved far lesser than its potential.
ticipation of women entrepreneurs is required to make such sessions a successful event. Addressing participants, Chairperson Women Committee Ms Sadia Zia said that Rawalpindi Chamber always stands with women and has provided a platform to come forward and play their leading role. She urged participants to increase the level of interaction and bring more awareness among women and enrolled them under RCCI platform.
chairman cDA assures to resolve key issues of businessmen delegation of Islamabad Chamber of Commerce & Industry led by its President Sheikh Amir Waheed visited CDA Headquarters to congratulate Usman Akhtar Bajwa on being appointed as Chairman CDA. Addressing the delegation, Usman Akhtar Bajwa said that Islamabad was facing many problems as there was no long-term strategy or plan in CDA for the development of residential and industrial areas in the federal capital. However, he said that he would prioritize the issues according to their importance and take measures to address them. He said he would try to utilize IT and technology to bring efficiency and improvement in the performance of CDA and to provide online services to people. –CB Report
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NDP Toyota Corolla car impounded by Customs Faisalabad FAISALABAD: The Customs Anti-Smuggling Organization (ASO) Faisalabad has taken into possession a smuggled Toyota Corolla car priced at Rs1million involving duties and taxes of Rs350000. Sources told Customs Today that, on a tip-off, the ASO special team set up a picket at a designated place and intercepted a non-duty-paid Toyota Corolla car bearing registration No: LEH 17-4457, Model 1993, near Chak-57 Faisalabad.
Wednesday, February 14, 2018
CUSTOMS BULLETIN
customs faisalabad impounds items & loaders valued at Rs24 million FAISALABAD NAeeM SheIKh
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he Customs Anti-Smuggling Organization (ASO) Faisalabad has seized the contraband goods worth Rs24million during January. Assistant Collector Shah Samad Hamadani told Customs Today that smuggling cases are declining day by day due to strict monitoring and timely actions of the ASO teams. He appreciated the performance of the ASO as it has frustrated a number of smuggling bids in the region. The impounded items include non-duty-paid vehicles, foreign origin cloths, crockery, dinner sets and other miscellaneous items. The Faisalabad ASO registered more than 14 seizure cases during antismuggling activities in January. It may be recalled that the ASO Faisalabad also covers Jhang, Mianwali, Sara-e-Muhajir, Sargodha and Faisalabad. He assured the higher authorities of maintaining this pace of work to achieve the yearly revenue targets under all the heads. The non-duty-paid seven vehicles were taken into possession under Section (U/S 16 NDP) valued at Rs4.5million. Three vehi-
cles being used for transportation of smuggling items worth Rs9.6million were impounded. The ASO team confiscated foreign origin cloths weighed 3,240kg
priced at Rs1.9million, tyres and tubes numbered 28 worth Rs550000, dinner sets numbered 30,594 cartons valued at Rs6million and other miscellaneous items
weighed 7,607kg priced at Rs1.1million during said period. He said the FBR strictly instructed all the customs collectorates to adopt a zero tolerance policy
against those involved in the smuggling. After receiving these instructions, the customs collectorates have sped up their efforts to thwart the smuggling activities.
NAB approves inquiries curraption by organizations, individuals KARACHI
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he Executive Board meeting of National Accountability Bureau (NAB), presided over by its Chairman Justice (Retd) Javed Iqbal, Monday approved inquiries and investigations into alleged malpractices by organizations and individuals. The NAB chairman ordered to
complete all inquiries and investigations within the given timeframe and warned the ofOicials that no case should be delayed for indeOinite period, said a press release. The board approved investigation against former head of Pakistan Science Foundation (PSF) Dr Manzoor Hussain Soomro and others for alleged misuse of authority by making illegal appointments in the Foundation and spending money on over 20 foreign and 90 local ofOicial tours causing millions of rupees loss to national kitty. The meeting approved an inquiry against ofOicials
of Pakistan Agricultural Research Council Islamabad for making over 200 illegal appointments. The board also approved an inquiry against CDA ofOicials and others for selling Plot Number 11 in Sector G-6 Civic Center Islamabad, on nominal rates. It also approved an inquiry against ofOicials of Privatization Commission of Pakistan for violating PEPRA rules in privatization of American Fertilizer Ltd Daudkhail Mianwali, causing around Rs 3.889 billion loss to national kitty. The meeting also approved to initiate investigation into alleged malpractices against
administration of NEPRA, Ministry of Water and Power, IPPS, M/s Blue Star Hydel Pvt Ltd., Bukhsh Solars Pvt Ltd., Saif Solars Pvt Ltd., Lucky Electric Power Company Ltd., Sadqaa Sons Energy Ltd., They violated solar power plants tariff due to which national kitty had to bear loss of over Rs 200 billion. An inquiry was also approved against Dr Akram Ch Vice Chancellor Sargodha University and others for illegal appointments. The board also approved an inquiry against Inspector FIA Adnan Lohani, former Senator Abdul Razaq and Chief Executive M/s Ma-
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lik Exchange Private Ltd. Kamran Khan over misuse of their authority, taking bribe and indulging in money laundering. The meeting also approved investigation against Talat Mehmood, Nouman Nawaz, Ijaz Ahmed, Raja Kamran and others for their alleged involvement in Rs 3.14 million corruption. The board asked the anti-graft watchdog to initiate inquiry against owners and developers of Al-Khair Housing Society for looting Rs 27.065 million from masses. The board also ordered inquiry into in ‘Land Utilization Department Sindh’ which caused loss to national exchequer.