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Vol 1 Issue No. 294

Karachi, Tue February 16, 2016

LAHORE

M HAYAT

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ozi Khan Burki, the newly appointed member of the Human Resource Management of the Federal Board of Revenue, has relinquished the charge of chief collector of customs. According to details, Khan relinquished his charge on Saturday and left the Customs House.

Collector of Custom Appraisement Lahore Muhammad Sadiq, Additional Collector Sumera Sheikh and Deputy Collector Abbas Ali Babar were present while biding see-off to Rozi Khan.

Sources told Customs

Price Rs. 14.00

Today that Khan will assume his office in FBR as member HRM from Monday (today). On the other hand, Sumera Nazir will assume office as Chief Collector Customs Central Region on Monday (today). Earlier, she was serving as Director General Customs Valuation.

Meanwhile, The Customs Central Region hosted a farewell reception in honor of the outgoing Chief Collector of Customs Rozi Khan Burki and Collector of Customs Mukarram Jah Ansari a at the Customs House the other day.

Former Chief Collector of Customs Rozi Khan Burki is already promoted to BS-22 and was transferred to Islamabad as Member HRM while Mukarram Jah Ansari posted as Collector at the Port Bin Qasim.

Gul Rehman’s PCA detects tax evasion of Rs 849,099 by M/s Abdullah Impex

By-laws of OIC Ombudsmen Association on the anvil

Ahsan briefs students on country’s economic growth

Director Saud Imran visits Customs Multan to discuss issues

Pak first skill development university to be established soon: Zulfiquar

The DG PCA Directorate Karachi has detected tax evasion of at least Rs 849,099 | See pAge 02 |

Abdul Khaliq, the executive secretary of the OIC Ombudsmen Association | See pAge 03 |

Minister for Planning, and Reforms Ahsan has briefed the youths on CPEC | See pAge 04 |

Director Customs IntelligenceSaud Imran visited Multan Range office | See pAge 12 |

Pakistan’s first skill development university will be established in Islamabad to impart | See pAge 09 |

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IHC disposes of three identical tax references Tuesday, February 16, 2016

National

ISLAMABAD: Islamabad High Court disposed of three identical tax references carrying tax claims of Rs 20,994,993 with a direction to the Appellate Tribunal Inland Revenue to decide the matters submitted through the cases within 60 days. IHC Single Bench comprising of Justice Aamer Farooq heard the cases filed by three different appellants. All three appellants had filed petitions against Regional Tax Office (RTO) and Appellate Tribunal Inland Revenue (ATIR) M/s Khursheed Printers Private Limited, Hair Transplant Institute Private Limited and M/s Lotia Sona Private Limited had filed “stay petitions” fearing RTO move aiming at recovering taxes, Rs 12,383,338, Rs 8,094,282 and Rs 517,373 respectively.

gul rehman’s pcA detects tax evasion of rs 849,099 by M/s Abdullah impex

Dr Subuctageen for bridging gap between traders, officials ISLAMABAD

M fAiZAn

KARACHI

AfTAB cHAnnA

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he Directorate General, Post Clearance Audit PCA, Directorate Karachi has detected tax evasion of at least Rs 849,099

by M/s Abdullah Impex by availing undue beneOits of SRO 659(I)/2007 on import of uncoated polyester Oilm (milky white). An audit observation has also been issued to the importer.

According to details, during the audit of import clearances made under different concessionary SROs, it has been found that M/s. Abdullah Impex, imported consignment of uncoated polyester Oilm (milky white) and availed beneOit of SRO 659(I)/2007 dated 30.08.2007, whereas the goods are correctly classiOiable under PCT Heading 3920.6200 on which concessionary rate of duty/taxes is not available.

In identical imports made by the other importers, assessing group has categorically rejected the declared PCT heading i.e. (3920.6310) as well as claim of concessionary rate of customs duty @ 5% under SRO 659(I)/2007 dated 30.08.2007, on the ground that the imported items i.e. uncoated polyester Oilm (milky white) is correctly classiOiable under PCT 3920.6200 chargeable to Customs Duty @ 20% Sales Tax @ 17% and WHT @ 6 %.

It is, therefore, clear that M/s.

odel Customs Collectorate Collector Dr Arslan Subuctageen has offered Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Islamabad Chamber for establishing a coordination office at Islamabad Dry Port in order to expedite the import and export activities. On the other hand, Islamabad Chamber has suggested that trader will promote the export and import in Islamabad instead of sending their consignments from Karachi if an idea of railway customs was implanted. The Islamabad based industries will utilised the Islamabad station to import and export the items that will boost the revenue generation of Islamabad Customs. Currently, the steel industries, medicine manufacturing companies, flour mills and other export oriented companies are working in Islamabad, while the marble industry is also growing fast side by side.

Collector Dr. Subuctageen has appreciated the suggestion, adding that all aspects of this matter will be reviewed and possible measures will be taken to realise it. The basic purpose of the coordination office is to bridge the gap between business community and Pakistan Customs.

Abdullah Impex, Karachi with active involvement of their Clearing agent M/s Junaid Enterprises has willfully and knowingly misdeclared the imported goods under PCT heading 3920.6310 in order to avail the concessionary rate of duty duties/taxes. Therefore, M/s. Abdullah Impex, Karachi is directed to pay the evaded duties/taxes at the earliest. Meanwhile, The Direc-

torate of Post Clearance Audit – Karachi has detected tax evasion of at least Rs 816,227 by M/s Bhutta International on import of Indoor SMD panel ceiling light and SMD Soft Lamp Strip in Rolls. The PCA has also issued an audit observation under Section 26 and 32 of the Customs Act, 1969. The PCA, while scrutinizing import data, found that imported items declared to be “In-

door SMD panel ceiling light and SMD Soft Lamp Strip in Rolls” claimed beneOits of Fifth Schedule, Sixth Schedule. The import was made through Customs Appraisement West. The exemptions are only available to SMD, LEDs with or without ballast with Oittings and Oixtures for promotion of the renewable energy technologies as per notiOication mentioned above.

infrastructure uplift a must to boost revenue collection: najeeb

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ISLAMABAD

M fAiZAn

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y developing infrastructure at Torkham border, the volume of trade can be increased between Pakistan and Afghanistan, Torkham Customs Deputy Collector Najeeb Arjumand has said.

In an interview with Customs Today, he said that a developed infrastructure will further expedite the clearance process of consignments

resulting in the revenue generation.

He said that after installation of the Web Based One Customs (WeBOC), the revenue generation increased up to Oive percent. He said that import module has been introduced but the export module will be launched later.

Despite not having the facility of electricity and proper infrastructure, the customs ofOicials were utilising their all strengths to facilitate the traders, the deputy collector said. Almost two-three hundred ve-

hicles crossed border from both sides in a day.

He said that Afghan traders did not prefer to use the Chaman and Taftan borders for trade but mostly used the Torkham as it is the only suitable and safe route to connect the Afghanistan with world.

There was no any terminal to ofOload the consignments due to which a mess of vehicles always observed causing a delay to the clearance of consignments, he said.

He said that facility of electricity

was not available to Torkham due to which all work was done by using electricity generator, adding that the speed of the internet was not sufOicient to handle all the matters expeditiously. The facility of telephone was provided just a month ago. On Afghanistan side, the infrastructure was more improved and the electricity facility was also available to them round the clock, he said. Pakistan imported fruits and vegetables from Afghanistan and exported cement, kinnow, Olour and sugar in re-

turn; he said, adding that a limited trade of food and medicines was being made these days. In winters, dried fruit, fresh fruits, coal and raw cotton were imported into Pakistan, while the trade volume increased between both countries in summer when up to 700 trucks were handled in a single day. He said that customs agents were thinking that their functions would be limited after the installation of the system but it will beneOit the both business community and customs agents.

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PRA reviews performance of enforcement officers LAHORE: A meeting was held at the Punjab Revenue Authority (Headquarters) wherein the performance of the enforcement officers came under consideration. Besides officers in Lahore, the meeting was also attended by officers posted in PRA’s Commissionerates in Rawalpindi, Gujranwala, Faisalabad and Multan. Addressing the participants, PRA Chairperson Dr Raheel Ahmed Siddiqui directed that the PRA officers should make all-out efforts to collect taxes and should not be deterred by challenges faced by them. He also stressed that Punjab Chief Minister Shahbaz Sharif, in a recent meeting, had offered his full support to the efforts of Punjab Revenue Authority.

customs court sends alleged smuggler to jail on judicial remand

Tuesday February 16, 2016

National

By-laws of oic ombudsmen Association on the anvil

LAHORE

M iMrAn MeHAr

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he Special Court of Customs Taxation and Anti-Smuggling has sent a suspect involved in smuggling of auto parts on a 14-day judicial remand for further prosecution.

As per details, Special Judge Chaudhary Ameer Muhammad Khan heard the case but Customs Investigation and Intelligence did not present complete challan of the case. The court, after hearing the arguments of both sides, ordered to send the suspect, Muhammad Faiz, on judicial remand. As per details, Muhammad Faiz was arrested by the Customs Intelligence following the recovery of smuggled auto parts worth Rs 5 million from his possession.

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Anf recovers huge quantity of opium, charas KARACHI

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he Anti-Narcotics Force (ANF) has recovered huge quantity of opium and charas and arrested a person during a crackdown.

Sources informed Customs Today that ANF authorities received credible information regarding smuggling of narcotics. ANF enhanced their monitoring on all the exit and entry points of the city. ANF team raided a house which is located at Faqir Colony of Orangi Town arae and recovered five kilogram of high quality charas and two kilograms of opium.

ANF authorities also arrested a person who was identified as Imtiaz Khan. Sources said that the above mentioned narcotics were being smuggled to Balochistan.

Sources said that the above mentioned narcotics were being smuggled to Balochistan.

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ISLAMABAD

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bdul Khaliq, the executive secretary of the Organization of Islamic Cooperation (OIC) Ombudsmen Association, said that framing of body’s ‘bylaws’ was near to completion with its translation into Arabic and French languages. A Steering Committee, consisting of nine Muslim states, was constituted in 2012 in order to form the ‘constitution’ and ‘by-laws’ of the OIC Ombudsmen Association. Besides Pakistan- Indonesia, Iran, Guinea, Jordan, Morocco, Republic of Niger, Sudan and Turkey were the member states of the Steering Committee.

Under leadership (as president) of Pakistan’s Federal Tax Ombudsman (FTO), the committee was about to accomplish the epic task with the completion of ‘by-laws’ inline with its English version which was prepared under supervision of Pakistani ofOicials, said Abdul Khaliq.

Talking to Customs Today, Abdul Khaliq said that a nine member Steering Committee had prepared the document of OIC Ombudsmen Association’s ‘constitution’ and later the initial draft of ‘by-laws’.

He said the draft of both drafts were essential to materialize the conception of OICOA in order to establish and run the organization.

Initially, an English draft was prepared, with consultation of all

member-Muslim states. It was required to be translated into Arabic and French languages since these were also official languages of the organization along with English.

It was required to be translated into Arabic and French languages since these were also official languages of the organization along with English.

“Morocco had offered the facility of translate English version into Arabic and French. First draft of

federal Tax ombudsman fTo, the committee was about to accomplish the epic task with the completion of ‘by-laws’ in-line with its english version which was prepared under supervision of pakistani officials, said Abdul khaliq

pM announces zero-rated tax regime from July 1 ISLAMABAD

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rime Minister Nawaz Sharif has accepted the business leaders’ proposal of zerorated sales tax regime for export sector and directed the authorities concerned for introducing the regime from July 1, 2016.

The prime minister accepted the proposal during a meeting with a group of leading businessmen at PM’s House. The meeting was also attended

by CM Shahbaz Sharif, Finance Minister Ishaq Dar, Minister for Planning Ahsan Iqbal and other senior ofOicials.

The PM said that private sector has a key role in country’s economic growth and asked the business community to take advantage of business-friendly economic policies. The participants briefed the Prime Minister about existing business environment in Pak-

istan and shared their proposals for achieving rapid growth in Pakistan’s economy. They particularly referred to reforms in Federal Board of Revenue in the backdrop of coercive and exploitative measures against businessmen in the past and appreciated government’s resolve for creating a conducive environment for taxpayers.

The prime minister constituted a committee to evaluate the proposals given by the participants for coming up with Oirm recommendations within next 10 days to reach at Oinal decision.

French translation was examined closely and returned to Morocco Tax Ombudsman office after some anomalies were found in the draft not aligned with English draft”, he said. “As soon as the draft will be shared with OICOA secretariat in Pakistan and, agreed, the process of “by-laws” formation would reach to its conclusion”, he said hoping that member states were working on the task for its earliest completion.

rTo-iii collects rs 26.2b in first 10 days of feb he Regional Tax Office-III (RTO) has collected Rs 2,6212m under the head of different taxes in first days of February of the current fiscal year. As per detail, RTO-III has recovered Rs 25,102m as income tax, Rs 1,020m was collected under the head of sales tax and Rs 90 million as federal excise duty.

It is necessary to note here that RTO-III has recovered total amount of Rs 85502 million taxes in the month of January.

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PM’s economic, energy vision lauded ISLAMABAD: The business community fully supports Prime Minister Nawaz Sharif’s economic and energy vision that has put the country on the path of progress and prosperity.

This was stated by Pakistan Overseas Employment Promoters Association (POEPA) Chairman Chaudhry Muhammad Afzal, while talking to the office-bearers of the association. He said that the economy is growing, investors’ confidence continue to improve, while energy import and manpower export deals with Qatar are highly significant.

Afzal said that the LNG deal would benefit industry, agriculture and domestic consumers, while the government would be in a position to reduce tariff to provide relief to masses.

Tuesday, February 16, 2016

Business

pSX adds mammoth 464pts at closing as bulls come back KARACHI

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fter a long bearish trend, the Pakistan Stock Exchange (PSX) gained huge 463.99 points to close at 31928.15 points level on Monday.

The stocks recorded the highest trading level of 31943.24 points and lowest level of 31464.16 points, with the volume of 89.23 million shares, having about Rs5.77 billion

Ahsan briefs students on country’s economic growth

value. As many as 314 companies were active; of which 200 advanced, 92 declined and 22 remained unchanged. Commercial banks was the top traded sector with 10,277,800 volume, while cement remained second with 9,406,600 volume.

The three top traded companies were Jah.Sidd. Co. with a volume of 6,489,000 and price per share of 20.65 (-0.60), Sui North Gas with a volume 5,481,500 of price per share of 25.00 (1.19), and TRG Pak Ltd with a volume 4,583,000 of price per share of 26.50 (0.06).

The top three gainers were Hinopak Motor with price per share

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ederal Minister for Planning, Development and Reforms Ahsan Iqbal has briefed the youths on China-Pakistan Economic Corridor (CPEC), Metro and Orange Line projects, economic vision of his government and Pakistan’s foreign relations during his visit to the University of Lahore. While addressing on the topic of Youth Development Corps (YDC), the minister said that Pakistan.

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(32.17) and Service Ind.Ltd price per share of 891 (21).

pr aims to generate rs 37.8 billion in ongoing fiscal year

LAHORE

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1079.08 (33.61), Murree Brewery with price per share of 738.50

ISLAMABAD

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akistan Railways is conOident to generate Rs 37.8 billion revenue during the current Oinancial year under a multi-pronged strategy including business development, rolling stock availability, infrastructure development and governance. The government had given the target of Rs 32 billion to be achieved during the current Oiscal and the Railways would not only

achieve the target but also surpass it, an ofOicial in the Ministry of Railways told APP. “The freight train service was main source of income of Pakistan Railways which was improving gradually, adding presently plus-minus nine goods trains were being operated on daily basis.”

He said out of 452 locomotives 281 were operational. He said that the present government has recently added 63 locomotives in the existing Oleet owned by PR. Giving year-wise break up, he said that in 2012-13 Pakistan Railways had total

160 locomotives while 92 passenger trains were operating. With the size of the rolling stock, PR and earned capital of 1.07 percent increase from freight trains.

In 2013-14 the size number of locomotives was increased to 188, while the number of trains moved up to 104 and earned increased revenue of 2.44 percent in the freight train sector. In 2014-15, he said the number of locomotives was increased to 281 and improving the number of passengers trains to 106 while the revenue from freight trains jumped to 7.03 percent.

govt urged not to privatise public entities KARACHI

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he government has been urged not to privatise public entities and immediately abolish antilabour laws and practices.

The demand was raised by the speakers during a conference titled ‘Harmful Consequences of Privatisation and Unannounced Closure of Pakistan Steel Mills’, jointly organised by the National Trade Unions Federation (NTUF), Pakistan Steel Mills Officers, Workers Action Committee. The conference was attended by PTI leader Asad Umar, PIA Joint Action Committee leader Nasrullah Khan Afridi, Sheikh Majeed, NTUF Deputy General Secretary Nasir Mansoor, Pakistan Steel Officers, Workers Action Committee leaders Rehman Shah and Naveed Aftab and Pakistan Railways Workers Union former chairmen Haq Nawaz Akhter, Manzoor Razi, Liaquat Sahi and Rafiq Baloch.

The speakers said that the sitting government during the last two and a half years has dealt a serious blow to the national economy by implementing negative policies like selling national assets cheaply after deliberately damaging them and quoted the recently unannounced and illegal closure of the Pakistan Steel Mills.

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uSAiD helps provide electricity to 68 villages of S waziristan ISLAMABAD

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s many as 86 villages of South Waziristan Agency has been provided electricity through the United States Agency for International Development (USAID), while roads and bridges were also constructed under FATA Infrastructure Project 2010-18.

USAID to Pakistan Mission Direc-

tor Jhon Groarke said this while talking to APP about developmental projects in various agencies of FATA. Responding to a question, the Mission Director said that USAID was working on FATA Infrastructure Project (2010-2018) with the FATA Secretariat to build, rehabilitate, and reconstruct roads that connect remote communities to markets.

A number of other social services to restore electricity infrastructure, and improve access to water for hu-

man consumption and agricultural irrigation were also being executed in various parts of FATA with the funding support of USAID, the Mission Director said. Giving details about projects in South Waziristan he said that to date, the program had completed 548 kilometres of roads, including 27 bridges, in the FATA and had provided power to 68 villages of South Waziristan Agency.

Pointing out various challenges in the area, he said FATA faces a variety

of challenges, including a low literacy rate, high child mortality rate, and low per-capita income. He also said that a Multi Donor Trust Fund (2010-2020) had already been established with the Oinancial support of the USAID and other international donors administered by the World Bank for executing reconstruction and rehabilitation of FATA. Under this multilateral fund a reform agenda to build peace and create conditions for sustainable develop-

ment in FATA in the aftermath of the 2009 insurgency crisis and 2010 Oloods was initiated, the Mission Director said. Responding to another question about FATA Institutional Strengthening Project (2011-2016), he said USAID in collaboration with the FATA Secretariat and the FATA Development Authority helped in building the capacity of these institutions to deliver essential public services, such as health and education, to FATA residents.

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pecial Assistant to Prime Minister for Revenue Senator Haroon Akhtar Khan has attended the voluntary compliance tax awareness seminar organized by the Regional Tax OfOice Multan.

The Regional Tax OfOice organized the seminar for the business community of the Southern Punjab to inform traders about the beneOits of the voluntary tax compliance scheme. Tax authorities of the Regional Tax OfOice organized the seminar on the instructions of the FBR to make tax amnesty scheme a success.

Commissioner Bilal Zubair has given brieOing to the participants of the South Punjab about tax amnesty Scheme that Federal Board of Revenue have simpliOied assessment between Oiler and non –Oilers by launching new tax amnesty Scheme. He told that voluntary tax compliance scheme has been drafted after recognizing the impediment of the trader’s community and almost all tax complications are Oixed through this pattern. He addressed that FBR have launched single page return to ease taxpayer and through this scheme exempted from sales tax registration. After Oiling tax returns, you will be exempted from tax audit from 2015 to 2018 and exemption of wealth statement on less than one million turnovers. But if tax payer failed to Oile

tax returns in the next four years then he will not remain eligible for this voluntary tax compliance scheme.

Chief Commissioner Regional Tax OfOice Multan urged business community that they should avail opportunity of this newly launched scheme as it is much more productive for them. He told that this scheme has been launched due to mutual efforts and consents of the government and business community.

Member Inland Revenue Rehmatullah Wazir told that only one million people out of 20 million Oiled their tax returns which is an inadequate part of our economy. He told that 90 percent traders of the country are still out of tax net and we trying to bring them into tax base. He expressed that government of Pakistan have formed laws with legislative wisdom without use of any force to realize tax payers that state is serious in economic reforms through their cooperation. He advised that non –Oiler should Oile tax returns and avoid themselves from deduction of withholding taxes on banking transactions.

When non-Oiler becomes Oiler through this volunteer tax compliance scheme then all previous tax notices will be reserved .He further told that we are aware with the difOiculties of the traders

but the tax payment is the duty of every citiz who earned payable amount in the country.

According to received date of Multan Electr Power Company (MEPCO), there are almo 425,000 consumers which come under tax n and we are making our efforts to bring the into tax net Rehmatullah Wazir revealed. Spec Assistant to Prime Minister for Revenue Senat Haroon Akhtar Khan addressed the trade that launching of tax amnesty scheme we tough decision for government whi took after long negotiation wi business community.

office x a T l giona es business e r n a rg ult The M missioner u vail the om oa chief c mmunity t this newly co ch of unity , as it is mu aid t r o p e s op schem r them. He the d e h c o h laun ductive f ed wit nd h c o r n p u a e mor eme was l ernment a v h the sc nt of the go mmunity conse business co the

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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.

investment in people I

LAHORE

Dr AfTAB AfZAL

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nvest in education and health sectors’ is the message World Bank Group President Jim Yong Kim has conveyed to the Pakistani leadership in Islamabad. According to him, investment in people will make Pakistan a success story in the comity of nations. Pakistan has one of the youngest populations in the world and investment in education and healthcare will enable them to show good performance in every Oield of the economy. The World Bank chief also slapped in the face of local leadership when he quoted the founder of the nation Quid-eAzam’s saying ‘Unity, Faith and

Discipline’ which can guarantee not only economic growth of the country, but also convert Pakistan into a great success story. The present government has only two years left to do any good to this nationand brighten its chances to come to power again in the next general elections. The World Bank chief pointed out the critical phase through which the country is currently going through and the government still has two years to play a historical role for the development of the economy.

Investing in education, especially in early childhood education, means investment in the people as well as provision of healthcare facilities will push the country toward economic development. There is also a need to

strengthen private sector by offering it incentives enabling it to play its due role in the country’s economy. However, encouraging the leadership, the World Bank chief says that Pakistan is now on the right track to become a great success story in the world and has offered its experience to ensure sustainable growth. It seems our leadership is unprepared to take any step to boost not only infrastructure, but also introduce structural reforms to strengthen the economy. The country been made hostage to mismanagement, corruption and prehistoric methods of bad governance. In this modern era, the Pakistani leadership can make Turkey, Malaysia, UAE or South Korea as its role models and copy and implement

their economic policies in the country. Pakistan has survived many economic shocks due to its undocumented economy which is a blessing in disguise. The documentation of the economy is necessary, but the government will have to carefully tread on a thorny path as it should not affect the real economic growth. According to Finance Minister Ishaq Dar, the country is on the right track and economic indicators are showing improvement. The tax to GDP ratio hasincreased from 8.5 percent to 10 percent and the revenues collections have registered 18.2 percent growth. The minister is right to his words; the jugglery of Oigures never brought any good to the nation in the past and nothing good will happen in the future.

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Customs officials find 7kg gold hidden in car fuel tank KASARGOD: A team of customs officials has taken into possession seven kilograms of gold hidden inside the fuel tank of a car manufactured abroad. The car in question was among a consignment of cars which arrived at Kochi port in ship from Dubai. The customs officials disclosed that 14 golden chains of 24 carats purity worth Rs 2 crore was recovered from the fuel tank. The car and its contents had been booked in the name of Moideen Kunhi from Puttur. He was taken into custody by the customs team.

Reportedly, Kunhi claimed that the gold was smuggled into the country through his car by Shabbir Ali (40), a resident of Hosdurg Adinhal and C P Ziyad (36) from Nileshwar Kotappara, who run some business in Dubai. On the basis of this information, customs officials raided their houses. But the officials refused to reveal anything about this raid.

uniDo-icci organise ‘celebrating Success’ event n event entitled “Celebrating Success” was organized by the United Nations Industrial Development Organization (UNIDO) in collaboration with Islamabad Chamber of Commerce and Industry (ICCI) to celebrate the remarkable success of the Global Cleantech Innovation Program for SMEs and Startups (GCIP). Cleantech is a global competition aimed at promotion of Innovations in the area of Clean Technologies. This competition is simultaneously carried out in six countries i.e. Armenia, India, Malaysia,

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Pakistan, Turkey and South Africa around the world.

The main aim of this competition is to foster innovations in Renewable energy, Energy Efficiency, Water Efficiency and Waste to Energy in SMEs and Startup companies. This program involves extensive mentoring, training, access to investors and opportunities to showcase their innovations. Cleantech is basically a business accelerator program aimed at converting the Cleantech ideas into viable businesses and supports them to develop their innovative technologies into full-fledged market-ready products.

The program culminated in five winners being awarded prize money ranging from US$ 15,000 to US$ 20,000 and the opportunity to participate in the Cleantech Open Global Forum held in Silicon Valley, USA. The visit was of prime significance for the participants in terms of increasing their exposure and also to raise investment for their start-ups from international investors and venture capital firms. —CB Report

Tuesday February 16, 2016

Chambers

‘pakistan’s first skill development university to be established soon’ P

FAISALABAD

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akistan’s Oirst skill development university will be established in Islamabad to impart international standard training and skills to the Pakistani youth said ZulOiquar Ahmed Cheema Executive Director National Vocational and Technical Training Commission (NAVTTC). He was addressing a seminar on cooperative vocational training (CVT) in Faisalabad Chamber of Commerce and Industry (FCCI) here. He said that Pakistan is blessed with unlimited resources including 200 million hardworking, committed and dedicated people. He said that if this asset is properly utilized, we could get a place in top ten countries. However, in this connection we have to equip 80 million productive youth with international standards skills and vocational training. “They can change the fate of Pakistan in addition to resolving the issue of unemployment and poverty on permanent basis”, he added.

He said that CVT was introduced initially in Lahore and Karachi. Now this program will be expended to

whole of Pakistan with the technical and Oinancial help of EU, Germany, Norway and Netherland. He hoped that the industrial units of Faisalabad will fully cooperate in this project as it would not only fulOill their demand of skilled workers but also generate much needed economic activity in the country.

He further told that NAVTTC has already started Prime Minister’s Youth Program. During its Oirst and second phase 25/25 thousand youth was provided technical training and now in its third phase, the training will be imparted to another 50 thousand youth while stipend would also be enhanced from 25000

to three thousand.

Addressing as guest of honor Mian Muhammad Adrees former president Federation of Pakistan Chambers of Commerce and Industry said that we have only 1.4% jobs for 3.2% youth entering every year in the labor market. He termed this human resource as precious asset but warned that it could turn into a demographic Olood if we failed to capitalize it with proper technical and vocational training Substantiating this point, he said that overseas Pakistanis are sending foreign remittances to the tune of 15 billion dollars per annum which is three times more than 6.6

Lcci 3-day iT exhibition begins at Alhamra

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ream of economic stability cannot come true without equipping the business community with IT based knowledge.

The LCCI three-day Information Technology Exhibition will not only help promote Information Technology activities in the province but will also encourage IT exports.

He was addressing at the opening ceremony of the LCCI three-day Information Technology Exhibition here at Alhamra Art Gallery. The function was attended by the LCCI President Sheikh Muhammad Arshad, Senior Vice President Almas Hyder, Vice President Nasir Saeed, Convener LCCI Standing Committee on Information Technology Shahzad Ahmed Executive Committee Members Abdul Razaq, Amjad Ali Jawa,

Sheikh Muhammad Ibrahim, Waqar Ahmed Mian, Adnan Khalid Butt, Sheikh Muhammad Fayyaz Ahmed, former LCCI chiefs, leading businessmen, economists, IT experts and people belonging to various walks of life. The exhibition was organized in collaboration with Zong Pakistan and Punjab government.

Provincial Minister said that Punjab government is well aware of the fact and taking innovative measures to promote information technology in the province. While lauding the LCCI efforts, he said that this initiative would be proved a milestone in promotion of information technology amongst the business community. The LCCI ofOice-bearers said that the LCCI three-day Information Technology Exhibition will underline the importance of information technology in business success.

They said that the LCCI Exhibition on Information Technology is a

giant towards promotion of IT based economy. He said that in today’s world, IT knowledge is of prime importance as not only it unlocks the doors of progress and prosperity but also provides a chance to get access to global opportunities.

“Knowledge race in the 21st century and rapid globalization, the quality of information technologybased education has to be enhanced to bring it at par with international standards for bringing the country out of economic mire. And to achieve the goal, the government would have to spend more on education as the existing budget is too meager to produce desired and required results”, the LCCI ofOice-bearers added. The LCCI ofOice-bearers urged the government to provide maximum facilities to the potential exhibitors as fairs and exhibitions play an important role for the economic stability of a country.

Billion dollar Extended Fund Facility of International Monitory Fund.

Mian Muhammad Adrees also stressed GDP growth rate at 7% to maintain present pace of economic development in addition to providing jobs to the surging population. He also demanded six percent allocation in federal and provincial budgets for education and out of it at least 50 % should be earmarked for the technical and vocational training. Earlier, in his address of welcome, Chaudhary Muhammad Nawaz President Faisalabad Chamber of Commerce and Industry briefly introduced Faisalabad and FCCI and said that initially the local industry was depended entirely on unskilled workforce which was replaced with skilled workers to improve the quality and on the demand of the importing countries. The local industry made in-house arrangements for the training of its workers which were later supported by TEVTA that provided trainers and inducted local industrialist in its BODs to upgrade curricula and start new training courses in according to the market needs.

ir-op chief Yousuf visits Hcci kiosk set up for taxpayers hief (IR-Operations) Yousuf Haider Shaikh has visited Hyderabad Chamber of Commerce and Industry for monitoring special kiosk established at HCCI to facilitate the taxpayers who want to avail Voluntary Tax Compliance Scheme.

Hyderabad RTO Chief Commissioner Dr Mohammad Ali Saand, Commissioner (Zone I) Kazi Afzal and Additional Commissioner Muhammad Shamim were also accompanied by the chief. Yousuf Haider observed efforts made by the Regional Tax Office in respect of Voluntary Tax Compliance Scheme. The FBR officials answered the questions asked by the members of HCCI regarding the scheme satisfactorily. —CB Report

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India’s tea exports to Pakistan rises 56% Tuesday February 16, 2016

World

NEW DELHI: India’s tea exports to Pakistan rose by 56 per cent to Rs. 139.74 crore in the first nine months of the current fiscal, while the overall outward shipments surged by just 9 per cent to Rs. 3,218.07 crore.

Total exports to the neighbouring country stood at Rs. 89.46 crore in the first nine months of the previous fiscal, according to Tea Board data. However, overall tea shipments increased by 9 per cent to Rs. 3,218.07 crore in the April-December period of the current fiscal from Rs. 2,955.78 crore in the year-ago period. The per unit price at which tea was exported to Pakistan increased to Rs. 97.04 per kg from Rs. 84.80 per kg a year ago. In volume terms, outward shipments from India to other neighbouring countries increased to 14.40 million kg from 10.55 million kg in 9-month period in 2014-15.

russia aims for customs reforms to speed cargo processing MOSCOW

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ussia’s First Deputy Prime Minister Igor Shuvalov has issued an order to the Russian Federal Customs Service to signiOicantly streamline customs clearance procedures with the aim of speeding cargo handling at Russia’s borders and seaports.

The reforms should be completed

by May or June after Shuvalov decides on a raft of proposals to speed cargo clearance that are due to him by April 1, according to a spokesperson for the minister. The FCS will also establish a new single window electronic platform able to process all of the necessary payments and documentation required by customs, the spokesperson

Bahrain customs arrests Saudi woman in liquor smuggling case n attempt by a Saudi woman to smuggle 1,504 bottles of liquor via King Fahd Causeway has been foiled. The bottles were concealed in the bottom of an eight-metre long boat towed by a SUV driven by an Asian national.

The banned liquor was discovered as the boat was scanned by the customs, Saudi daily Al Riyadh reported on Wednesday, citing a source it did not identify. According to the source, the involvement of the woman was meant to divert the attention of the customs officers and allow the SUV and the boat to pass without a thorough check. However, the officers became suspicious about the unusual presence of a woman without relatives in towing a boat into Saudi Arabia, and applied the X-ray scrutiny rules, enabling them to discover the liquor bottles.—CB Report

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said. If in OECD countries, the paperwork for processing a container takes no more than Oive hours with a cost of $36, then in the case of Russia these Oigures are estimated at 43 hours and $500 respectively, according to statistics of the FCS. The cost of customs control for Russian exporters varies between $1,000 and $1,125, compared to $335 in the case of certain EU states. The cost of inspections at the Russian border is estimated at about 300 euros per container, while the cost of a customs warehouse may vary in the range of 15,000 to 150,000 rubles daily ($230 to $2,300), according to data from the FCS. After registration of all the necessary documents, the examination of goods takes 10 to 14 days. There are also plans for the introduction of an automatic registration of e-declaration and to accelerate the process for issuing digital signatures during cargo clearance.

philippines customs seizes smuggled ducks in Batangas MANILA

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lert operatives of the Customs Intelligence and Investigation Service (CIIS) in the Port of Batangas have seized millions of pesos worth of smuggled frozen Peking ducks from Hong Kong recently.

CIIS-Batangas ofOicer-in-charge Manolo Arevalo on Thursday said the shipment was outright seizureable in favor of the government because it lacked the required importation permit from the National Meat Inspection Service (NMIS) and its consignee was found to be Oictitious. The hot cargo of approximately 3,000 pieces of frozen Peking ducks were contained in 500 boxes.

Arevalo explained that even if the shipment has complied with all the importation requirements, it is still

subject to automatic seizure as all meat importation from Hong Kong is prohibited. “Peking duck importation is not only prohibited but is banned by the Philippine government because of the existence of the bird Olu virus from its country of origin,” Arevalo told The Manila Times.

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Records show that the shipment arrived at Batangas port from Hong Kong on January 17. It was loaded in a 20-footer refrigerated van and declared as frozen meat. It was consigned to Get Enterprises, which was found to be Oictitious following veriOication by the CIIS-Batangas team.

Thai govt regularises 70,000 foreign china’s home loans increase in 2015 hina’s outstanding home loans cut benchmark interest rates five workers in fishing industry for individual purchase con- times last year.

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hai authorities have registered more than 70,000 undocumented foreign workers in the Oishing industry, from an estimated overall of 200,000. This measure is part of government efforts to avoid the serious consequences of an European ban on Thailand’s exports of Oish products.

Of registered migrant workers, some 50,000 work in Oish processing plants, and the rest in Oishing boats. Those who have already registered will be allowed to continue

working for at least two years, ofOicials said. Moreover, the government has revoked the registrations of about 8,000 Oishing vessels in the past year. “It’s a national agenda, and the prime minister has stressed that he has zero tolerance on this issue,” said Foreign Ministry spokesperson Sek Wannamethee referring to the Government’s battle against illegal practices in the sector.

Last April, Thailand was issued a “yellow card” by the EU, threatening the country.—CB Report

tinued to rise in 2015, the People’s Bank of China (PBOC) said in a statement. The figure accumulated to 13.1 trillion yuan (2 trillion U.S. dollars) by the end of 2015, up 23.9 percent year on year, according to the statement. The outstanding real estate loans in 2015 contributed to 22.4 percent of the total outstanding loans across all sectors, adding 1.1 percentage points year on year.

To promote the housing market and combat a broader economic slowdown, China’s central bank has

Meanwhile, China imported 82.19 million tonnes of iron ore in January, up 4.6 percent from the same period of last year, customs data showed on Monday.

Crude oil imports fell 4.6 percent on the year to 26.69 million tonnes, while coal imports fell to 15.32 million tonnes, down 9.2 percent compared to the same period of last year. Copper imports rose 5.3 percent compared with last January, to reach 437,000 tonnes, data from the General Administration of Customs showed.—CB Report

chinese customs rejects fewer wines in 2015

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BEIJING

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ewer imported wines were rejected by Chinese customs in 2015 amid strong growth in wine import, shows ofOicial Oigures.

284 tons (123 batches) of imported wines were destroyed or returned by the Chinese Customs for

quality and packaging problems in 2015, according to the reports released by China’s General Administration of Quality Supervision, Inspection and Quarantine. The number has decreased by 10% from 2014 (314 tons, 165 batches).

Amid a 45% year-on-year increase in wine import volumes in 2015, the move suggests better awareness of Chinese customs reg-

ulations among foreign producers.

Spain (26%), France (11%) and Australia (10%) were again among the top sources of wines being blocked by Chinese customs. In volume wines from these countries account for 14%, 42% and 14% respectively of wines entering China in 2015. The top reason for rejection was the excessive use of food preservative sorbic acid (21%).

According to China’s national standard on wine (GB15037), the allowed level of sorbic acid in wine is 200mg/L. This requirement is in line with the maximum level deOined

by EU food additives regulations.

The preservative, when consumed in too high quantities, could be potentially damaging to liver and kidney functions, according to China’s quarantine authority.

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NMMA reports increase in engine shipments WASHINGTON: On a rolling 12-month basis, U.S. outboard engine wholesale shipments were up 3.1 percent year-over-year through January. That figure is for the National Marine Manufacturers Association’s control group of manufacturers, which the NMMA said represents 95 percent of the market.

Gains were led by four-strokes and higher-powered engines. Total retail sales, based on warranty card registrations for the same period, were up 7.7 percent, according to the NMMA.Meanwhile, Imports rose more than 75% at the Port of Oakland in January, signaling the West Coast has recovered much of its normal volume a year after many businesses diverted cargo to other ports amid widespread delays.

obama budget cuts port funding by $269m ort advocates are unhappy with a $269 million funding cut that is included in President Obama’s proposed budget for 2017.

The president’s $4.1 trillion budget for fiscal 2017 calls for spending $320 billion over the next ten years to develop a “clean transportation” system, but the AAPA said Tuesday that the proposal would cut federal funding for ports from $1.22 billion to $951 million. American Association of Port Authorities President Kurt Nagle said the budget cut would negatively impact programs at the U.S. Army Corps of Engineers, Environmental Protection Agency and the Federal Emergency Management Agency that are designed to boost port productivity and security. “International trade now accounts for fully 30 percent of the U.S.

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S Lanka’s port sector regulations, policies need to be updated

Tuesday February 16, 2016

nicaragua plans to build new $400m caribbean port n Nicaragua, the National Port Company (EPN) is planning to build a new terminal at Bilwi, Puerto Cabezas, to accommodate cargo from the north of the country that is currently handled by the ports of Limón, in Costa Rica, and Cortés, in Honduras.

At present, just three shipping lines make use of Caribbean ports while Pacific ports have calls from 15 lines.

Bilwi will be expanded to allow it to accommodate some 4m tons of cargo annually, said EPN executive president Virgilio Silva, who estimates investment needed will be in the order of $400m. Once operational, he concludes that significant time savings will accrue. In addition to this project, the government is to invest $224m in modernising existing port, including construction of phase IV of Salvador Allende port, which has absorbed $35m; finishing San Juan del Sur port; and dredging 7km of the port of Bluefields to improve navigation for merchant vessels. In 2015, Nicaragua’s ports handled 4m tons of cargo and are predicting a 20% rise in 2016 to 5.3m tons. Meanwhile, open to more foreign investors in its transport services sector but it will limit foreign ownership of its air and sea ports to just under 50 per cent, said Transportation Minister Ignatius Jonan.—CB Report

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COLOMBO

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economy,” Nagle said in a statement.

“To compete in global markets, America needs an efficient and modern 21st century freight transportation system.

“It’d be a grievous ‘miss’ if this budget is adopted,” Nagle continued. “By underfunding needed waterside investments, it breaks a vital link in the supply chain that disadvantages the entire freight-handling system, waterside and landside.” Lawmakers who push for port investments also criticized the president’s budget for decreasing federal funding for the nation’s cargo ship facilities.

“During the last Congress, I worked hard to garner bipartisan support for a WRRDA spending plan that increased the amount of Harbor Maintenance funding going back to our ports and put us on the path to 100 percent spending of [Harbor Maintenance Tax] by 2025,” Rep. Janice Hahn (D-Calif.) said in a statement, referencing a 2014 water funding bill that passed

by Congress.—CB Report

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ri Lanka needs to conduct open discussions and update its information, regulations and policies to provide solutions for ports and maritime sector issues, Minister of Ports and Shipping said in a statement.

“All the information, regulations and policies in the sector should be updated to meet the current requirements of the sector,” Arjuna

Ranatunga, Minister of Ports and Shipping said.

He was speaking at the first meeting of Inter-Agency Coordination Committee on Ports, Shipping and Maritime Affairs in Colombo, Tuesday.

The committee will formulate and review policies, programes and projects relating to Ports, Shipping and Maritime sector and consultancy coordination between the stake holders of the sector falls under the portfolio of the ministry.

“The committee would provide us a platform to discusses interagency issues and give solutions. We

can discuss our problems at the meeting and provide quick solutions for them. Further we would be able get solutions for the problems with the stake holders as well,” Ranatunga said.

“The concept of establishing an inter-agency coordination committee has been recognized as a major requirement by the International Maritime Organisation,” L.P. Jayampathi, Secretary, Ministry of Ports and Shipping said. 400 to 500 ships usually call at islandwide ports and coordination among inter-agencies is needed to provide qualitative service.

port of Hk container throughput decreased in 2015

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HONG KONG

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he container throughput of Port of Hong Kong decreased with 9.5% in 2015, amounting to 20.11 million TEU. The main factors for the bad annual report continue to be the global Oinancial crisis and delay of the Chinese economy. In particular, the transshipment of containers through Kwai Tsing, which is the largest container terminal in Hong Kong, totaled to 15.57 million

TEU in 2015, which represent a decrease of 11.5% in comparison with the prior year. The handling of containers for import through the terminal amounted to 8.02 million TEU, representing a decrease of 11.1%, while the handling of containers for export amounted to 7.55 million TEU, representing a decrease of 11,8%. On the other port terminals were handled 4.54 million TEU, which is 2.1% less than 2014.

The negative dynamics of containers handled at Port of Hong Kong was recorded throughout the

year. The largest fluctuation on year-on-year base was recorded in October 2015, when the container turnover decreased with 18.8% yoy, while the smallest was recorded in February 2015, when the container turnover decreased with 2.7%.

In December 2015 the container terminals in the Port of Hong Kong handled totally 1.59 million TEU, which represent a decrease of 10.6% yoy. The container throughput of the largest terminal Kwai Tsing amounted to 1.25 million TEU

(-10.9%).

Port of Hong Kong, located by the South China Sea, is a deepwater seaport dominated by trade in containerised manufactured products, and to a lesser extent raw materials and passengers. It is one of the busiest ports in the world, in the three categories of shipping movements, cargo handled and passengers carried.

It is one of the busiest ports in the world, in the three categories of shipping movements, cargo handled and passengers carried.

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FBR not to exempt tax returns from audit filed in 2014-15 SIALKOT: The Federal Board of Revenue (FBR) will not exempt the income tax returns from audit, which were filed during the financial year 2014-15. Sources told Customs Today that the income tax returns of four years will be exempted from audit under the tax amnesty scheme launched by federal government. He said that the information about exemption of tax returns pertaining to 2014-15 from audit being disseminated through print and electronic media is not based on facts.

Tuesday, February 16, 2016

CUSTOMS BULLETIN

Director Saud imran visits Multan customs to discuss issues MULTAN iMrAn ALi

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irector Customs Intelligence and Investigation Saud Imran visited Multan Range ofOice here on Friday.

According to details, Director Customs Intelligence and Investigation paid visit to Multan Range OfOice. During his short visit he met with Additional Director Nisar Ahmad and discuss their performance in the jurisdiction including core issues of Multan Customs Intelligence and Investigation. The purpose of the visit of Director Saud Imran was to check preparations for the visit of Director General Customs Intelligence and Investigation Imtiaz Ahmad Khan on Monday.

He Oinalized the arrangements made by Customs Intelligence and Investigation Multan. Director Saud Imran have also visited warehouse of the Customs Intelligence and Investigation Multan where he pointed out scarcity of space for lying goods and vehicles in the Warehouse. Additional Director Customs Inteligence and Investigations Nisar Ahmad has also briefed Director about existing issues of the Customs

Intelligence and Investigation Multan including acute shortage of Field

staff for anti-smuggling activities.

He was informed about coopera-

tion’s of the Border Military Police, Motorway Police and tribal areas of

Rajanpur and Dera Ghazi Khan against smuggling.

customs collects 12pc extra revenue from July-Dec 2015 ISLAMABAD

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dditional Collector Customs Collectorate Islamabad Abdul Waheed Marwat has said that he is optimistic about achieving the revenue target until the year end. He said that “we have to follow our commitments according to our international pacts”.

Talking to Customs Today dur-

ing an exclusive interview, Marwat said that Pakistan Customs is using all of its resources to curb smuggling of narcotics and other contraband items. He said, “We have collected 12 percent extra revenue from July 2015 to December 2015 and this achievement is due to hard work of the entire team which is working directly under the supervision of the chief collector.” He said that due to tireless efforts of the staff, the department is succeeded in getting the positive results.

He said that collector instructed us to take every possible

measure to curb smuggling of mobile phones and narcotics through airports. He revealed that we are seizing such mobile phones which are not registered with Pakistan Telecommunication Authority (PTA).

He said our entire nation is fighting against terrorism and Pakistan Customs is joining hands with our law enforcment agencies of country to get rid of this menace. Answering a question Abdul Waheed Marwat said that our collector instructed us to take every possible measure to curb under invoicing, mis dec-

laration, and tax evasion. He said that we are expecting positive response from media regarding Ayyan Ali case, honourable court decided to return her passport, now we challenged the decision of court. Now she is inducted in money laundering case and her money is seized by the state. He clarified that customs authorities filed currency smuggling case against Ayyan Ali instead of money laundering.

He also said that Ayyan Ali case is being monitored by higher authorities. Answering a question he said that we have

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write a letter to Islamabad Dry Port for establishment of fransic laboratory now it is upto FBR to decide the matter, because FBR have authority to release the funds for establishment of fransic laboratory. He said we are trying to increase trade activities at Islamabad Dry Port and take steps to encourage the business community of Rawalpindi and Islamabad. He said we are also trying had to improve the performance of collectorate and we are getting positive response from Islamabad Chamber of Commerce and Industry.