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Karachi, Wed February 1, 2017

ISLAMABAD

TARIQ DERYA

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he Customs Air Freight Unit (AFU) collected revenue Rs 959.82 million under the head of customs duty during Qirst half (July-December) of Qinancial year 2016-17.

In an exclusive talk, Additional Collector AFU Khawaja Khuram Naeem told Customs Today that on account of customs duty the AFU collected Rs 200.74 million during December, adding that the AFU

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collected Rs 152.93 million during November.

Khawaja said that during month of October the AFU collected Rs 148.48 million, during the month of September it collected Rs 143.27 million under head of customs duty. He added that the AFU collected Rs 177.41 million during month of August and Rs 136.99 million under head of customs duty during month of July. Additional collector said that the AFU is optimistic about achieving its assigned target of customs Duty for the month of January as well as to surpass the assigned target for the second half of FY2016-17.

Customs first line of defence against smuggling: Dr. Muhammad Zubair

Multan Customs faces shortfall of revenue on imports

Pilot Association Palpa criticises PIA management

Customs Intelligence impounds Rs 10m non duty paid auto parts

‘Issue of non-customs paid vehicles parked in Dry Port to be solved soon’

FBR International Customs Chief Dr Zubair has said that Pakistan Customs | SEE pAgE 02 |

The MCC witnessed shortfall of revenue due to imposition of Infrastructure | SEE pAgE 03 |

PIA Pilots Association has criticised the PIA management over delay in the airline | SEE pAgE 04 |

Customs Intelligence and Investigations has confiscated over Rs10 million | SEE pAgE 14 |

Peshawar Qurban Ali said that the matter of illegal non custom paid vehicles parked | SEE pAgE 16 |

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SC moved to refer Panama case to FBR for probe Wednesday, February 1, 2017

National

ISLAMABAD: The Supreme Court of Pakistan has been moved to halt Panama Leaks case and refer it to the Federal Board of Revenue (FBR) for thorough investigation.

Barrister Zafrullah Khan of the Watan Party, through an application, requested the apex court to stop the ongoing proceedings of the Panamagate case and, let the FBR thoroughly investigate the issue of offshore companies.

He stated in the application that the FBR could properly investigate the matter, since it was involved in collecting revenue from off shore companies. He also stated that the Supreme Court had no jurisdiction to deal with revenue cases.

customs is first line of defence against smuggling: Dr. Zubair

KARACHI

ISLAMABAD

wAQAR AhmED AnSARI

m fAIZAn

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uetta Model Customs Collectorate has started crackdown against non-duty paid vehicles and impounded 38 vehicles during the crackdown.

Customs official told Customs today that the department has impounded 38 vehicles during November, December and first two-week of January. In the impounded vehicles included luxury cars, jeeps and others vehicles.

As per the details 25 vehicles were impounded in November, 11 in December while two vehicles were impounded during the last two-week of January. Deputy Collector Aman Ullah conduct operations at vehicles show rooms in different areas of the city. The department started crackdown during the month of September and obtained fruitful results, therefore department decided to continue this operation during this month. The department started operation with the cooperation of frontier courts and police.

The teams conducted various raids at show rooms in the area of Jinnah Town, Shebaz Town and surrounding area of the air port and impounded non-duty paid vehicles.

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ederal Board of Revenue (FBR) International Customs Chief Dr Muhammad Zubair has said that Pakistan Customs is dynamically leading modernization and connectivity in a rapidly changing world.

In his message on the occasion of International Customs Day, he said that it is also an axiomatic fact that borders divide, Customs connect since borders are synonymous with division. The main challenge for Customs administrations is to identify and pursue the best methods to increase connectivity which refers to people to people, institutional and information linkages that underpin and facilitate the achievement of objectives.

However, effective border management is increasingly becoming a daunting task due to complex endogenous and exogenous threats and challenges. Pakistan Customs, being cognizant of this enormous challenge, has embarked on its Qlagship project, titled “Integrated Transit Trade Management System” (ITTMS), which not only envisages infrastructural improvement, but bolstering interagency coordination and using data analysis for robust targeting and risk proQiling to maximize trade facilitation without compromising regulatory controls. In His message on In-

Quetta customs impounds 38 vehicles in crackdown

ternational Customs day he said, today, the Customs fraternity around the globe is celebrating International Customs Day under the umbrella of the World Customs Organization (WCO). The theme chosen for this year’s International Customs Day: “Data Analysis for Effective Border Management”, not only highlights the importance of information sharing for effective border management, but

is the hallmark of efQicient Customs enforcement through targeting and risk proQiling. Customs is in fact the Qirst line of defense against illicit movement of cargo across the borders. The role of Pakistan Customs is fast transforming from a mere revenue collecting agency to a dynamic enforcement agency against illicit movement of import and export cargo across international borders,

thereby safeguarding the global supply chain security. He said on this occasion, I would also like to thank a host of International Development Partners including the World Bank, Asian Development Bank, USAID, JICA, UNODC, USCBP, HSI, DFID, GIZ, IFC, etc. Without their technical and material support, it would have been difQicult for us to attain the present level of advancement.

Dg customs Valuation revises value of pet food D

KARACHI

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irectorate General of Customs Valuation has amended the Valuation Ruling No.977/2016 and added two more region wise categories of pet food in the ruling. The commercial importer M/s Aamena Enterprises, Lahore represented by Darvesh K. Mandhan, Advocate stated that they are importing cat and dog

food under brand name winner plus from Germany which does not fall in the existing table and being assessed in ‘Others’ brands category at $1.10/kg.

They further contended that there is no justification for the customs values determined at $0.90/kg and for other brands at $1.10/kg. They are importing at $0.70/kg.

Saba Fahad owner of M/s Pet Mania also appeared and stated that their brand `Josera’ from Ger-

many was being imported at $0.50/kg but now increased to $1.10/kg falling in `Others’ brands category. She produced computer receipts of super stores where `Josera’ is regularly being sold in 25-kg packing at Rs5100/bag.The petitioners contended that only one category should be made instead of two categories. They further stated that Chinese / Thailand are not exporting much as in bulk quantity is being imported from Europe. Two brands ‘Smart Heart’,

‘Me-O’ and `A-Pro’ are being imported from China / Thailand.

These are being imported on higher rates in the market but the value has been fixed uniformly at $0.90/kg for all higher brands.

By making ‘Others’ category they have been driven out of the business. They are being assessed at higher rates whereas their products are of low price in the market. There is no justification for two categories when all higher brands are placed in first category,

under low value. Directorate General Syed Tanveer Ahmed noted the category ‘Others’ may be abolished as all higher value brands are placed in first category at S.No.1, so there is no justification of other brands at higher rates. Therefore, two categories may be made region-wise as under: Customs values of cat/dog (pet food) all origins under PCT 2309.1000 of Europe/North America are fixed at $0.90/kg and of Thailand/China origin at $0.76/kg.

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Custom Court directs suspect to appear on next hearing KARACHI: Custom Court Judge Syed Faiz Rasool Rashdi has directed the suspect, Abdul Ghaffar, owner of M/s G & S Manufacture, to ensure his appearance before the Customs Court on the next date of hearing. The suspect was booked in a case of mis-declaration.

During the hearing, Accused Noman s/o Abdul Rauf, import manger of M/s AMI Pakistan (Pvt) Limited was present on after arrest bail vide order dated June 25, 2016. Another suspect, Sharjeel Jamal s/o Jamaluddin, owner of M/s R.J Enterprises was also present on the bail granted by Sindh High Court (SHC). However, Abdul Ghaffar was absent without any intimation, therefore, the court adjourned the hearing for February 6.

customs ASo impounds cDs/DVDs worth Rs5.3 million

Wednesday February 1, 2017

National

multan customs faces shortfall of revenue on imports

ISLAMABAD

TARIQ DERYA

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ustoms Anti Smuggling Organization (ASO) foiled a smuggling attempt and recovered foreign origin CDs/DVDs of worth RS 5.3 million during an operation at Burhan Interchange. The operation was a joint action of ASO and Motorway Police.Deputy Collector ASO Shahid Jan told Customs Today that in pursuance of information provided by collector office that a truck loaded with foreign origin CDs/DVDs is heading towards Islamabad from Peshawar. He immediately constituted a squad comprising Deputy Superintendent Rana Shakeel and Matloob Hussain Shah along with sepoys and drivers.

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Additional collector Saima Aftab hears two cases FAISALABAD

nAEEm ShEIkh

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he Customs Adjudication Additional Collector Saima Aftab conducted the hearing of two smuggling cases worth Rs4,273,317 forwarded by Customs Intelligence and Investigation. Sources told Customs Today that additional collector heard a case against M/s Digicon Trading which is allegedly involved in smuggling of Q-Mobile phones (1530 numbers) worth Rs22,83,280.

Sources said that Additional Collector Saima Aftab also heard case of Mudassar Hussain and others involved in smuggling of material along with vehicle. The party evaded customs duty and taxes worth Rs19,90,037. During hearing customs counsel said that container was being used for transportation of smuggled goods and was plying on road without payment of duty taxes.

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MULTAN

ImRAn ALI

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he Model of Customs Collectorate witnessed shortfall of revenue due to imposition of Infrastructure Development Cess on the import consignments at Multan Dry Port. Collector Sarfraz Ahmad Warraich told Customs Today that Multan Customs has handled only 255 import containers of the various goods during the Qirst six months (July to December) of the Qiscal year 2016-17. The number of import container from July to December of the Qiscal year 2016-17 were 451 and collection of duty taxes on them were almost Rs686.88 million. On the other hand Model of Customs Collectorate Multan has collected revenue of Rs530.20 million by handling 255 import containers of various goods cleared from Multan Dry Port and 196 import containers have been reduced for clearance from Multan Dry Port after the imposition of the Infrastructure Development Cess.

The Government of Punjab has imposed 0.9 % Punjab Infrastructure Development Cess on the import of all fresh food items like vegetables, fruits and High Speed Diesel (POL) products. The Punjab government is collecting Infrastructure Development Cess on all import consignments since 20th May of the 2016.

Importers are compelled to pay

dual duty taxes as Sindh government is already collecting 1.2% taxes on the import of each consignment. The importers are paying excess duty taxes at the other dry ports of the country including Multan, Faisalabad, Sialkot and Lahore.

Sources told that importers have to pay Sindh excise duty at Karachi and then they paid infrastructure development cess afterwards at various dry ports located in Punjab.

Collector Sarfraz Ahmad War-

on the other hand model of customs collectorate multan has collected revenue of Rs530.20m by handling 255 import containers of various goods cleared from multan Dry port and 196 import containers have been reduced for clearance from multan Dry port after the imposition of the Infrastructure Development cess

hyderabad fIu seizes smuggled Iranian juice

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HYDERABAD

ASLAm AnJum QuREShI

www.customsbulletin.com he Customs Intelligence and Investigation (I&I) Field Investigation Unit (FIU) foiled an attempt of smuggling and seized 598 crates of Iranian origin juice worth Rs717,000 involving duty and tax of Rs492.400 in an operation.

According to details, the Customs Intelligence received information through Director Feroz Alam Junejo about transportation of foreign ori-

gin items through National Highway, bypass Hyderabad. The FIU immediately constituted a team in the supervision of Deputy Superintendent Qasim Ali Alvi including Inspector Irfan Ghani, Sepoys Musarat Ali Shah, Sikander Malah, Noshad Khan, Azam Ali Chandio, Muhammad Imran, Janib Crub and Haneef Somroo.

The FIU team started searching vehicles at Hyderabad bypass to bar the smuggling attempt. While checking the FIU team intercepted a public transport vehicle and recovered 598

crates of Iranian origin juice. The crates were being transported to Karachi from Faisalabad. The FIU team asked the driver to show the legal documents regarding possession and transportation of foreign origin juice but he failed to provide any required document. After his failure, the FIU team registered a case of smuggling against the accused and conQiscated the crates. The team transferred the crates to Customs Warehouse and forwarded the case to Customs Adjudication for further proceeding.

raich has prepared comprehensive report for the decline in the import of Multan Customs due to imposition of infrastructure development ess. The report on the shortfall of the Collectorate revenue will be forwarded to Chief Collector Samaira Nazir of Customs Central Region to devise new strategy to seal the collection gap.

The value of the import goods cleared from Multan Customs was almost 1413.40 million.

Three customs officers reshuffled he Pakistan Customs has made transfers and postings in different departments of the customs in Lahore on As per details available to Customs Today Nasir Mehmood has been appointed superintendent of Land Freight Unit (AFU) Wagha.

Masood Javed has been appointed Principal Appraiser at Land Freight Unit wagha.

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Sale of imported, commercial cars increases by 5 percent ISLAMABAD: An increase of five percent has been recorded in the sale of old and light commercial cars that were imported in last three years.

According to a private news channel, in 2013, the ratio of imported used vehicles was 14 percent to the local made cars which increased to 19 percent in 2016.

A report given by Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), 46,500 used cars were imported in 2016 whereas local manufacturers produced Rs203500 cars. 43,400 used cars were imported in 2015 and local industry produced 2,47,000 and 500 cars including 50,000 vehicles.

Wednesday February 1, 2017

Business

palpa criticises pIA management KARACHI

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akistan Airline Pilots Association (PALPA) has criticised the PIA management over delay in the airline employees’ salaries, aviation policy and taking aircraft on wet lease. Addressing a press conference, Executive Committee of PALPA said the government and the management must own PIA and increase its Qleet on ownership basis. “It is a clear stance of the Executive Committee of PALPA on behalf of membership that PALPA is against privatisation.”

The association has strongly criticised the management of the Pak-

pakistan oilfields profit rises 27% KARACHI

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istan International Airlines (PIA) with regard to delay in the airline

govt releases Rs363.980b for development projects under pSDp

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akistan Oilfields Ltd’s (POL) half-yearly after-tax profit rose 27 per cent year-on-year to Rs4.66 billion due to lower exploration cost, decline in financial costs and upsurge in top line. The profit translated into earnings per share (eps) of Rs19.68 while the company’s board of directors paid an interim dividend of Rs15 per share. Sales rose 4.6pc year-on-year to Rs12.8 billion while operating costs fell 7.8pc to Rs4.12 billion.

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employees’ salaries, aviation policy and taking aircraft on wet lease.

PALPA President Captain Hamza said the National Aviation Policy 2015 failed to address the challenges faced by the local aviation industry and set the ground for the local aviation industry to Qlourish. “The new aviation policy has failed to achieve the goals of providing Qield to the local carriers to grow, building capacity, creating more jobs and getting the national carrier PIA out of the crisis,” said Captain Hamza. He added that the policy document for 2015 had been prepared in isolation and it entailed more questions and problems than provision of answers and solutions. “Instead of discussing item-wise speciQic issues and challenges faced by aviation in Pakistan, the report talks about mundane issues and practices of the industry that are not very relevant to ground realities in Pakistan,” he added.

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ISLAMABAD

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he federal government has released over Rs363.980 billion for different social sector developmental projects under Public Sector Development Programme (PSDP) 2016-17 as against the total allocations of Rs800 billion.

The government released Rs13.669 billion till January 27 for Pakistan Atomic Energy Commission (PAEC) against its total allocations of Rs27.690 billion, according to lat-

est data released by the Planning Ministry. The government also released Rs111.4124 billion for infrastructure and development projects under National Highway Authority (NHA) against its total allocation of Rs188 billion for FY 2016-17.

Under PSDP Rs60.2638 billion have been released for Water and Power Development Authority (Power Sector) and other power sector projects as against the total allocation of Rs 130 billion for current Qiscal year to overcome the shortage of energy in the country.

Meanwhile, a sum of Rs 6.8905 bil-

lion has been released for Water and Power Division (Water sector) projects for building the mega water reservoirs as compared to total allocations of Rs 31.716 billion in federal PSDP 2016-17. About Rs8.548 billion have been released for Higher Education Commission as compared to its total allocation of Rs21.486 billion for the year 2016-17. Similarly an amount of Rs2.604 billion has been provided to Housing and Works Division against the allocations of Rs7.687 billion while an amount of Rs 2.343 billion has been released for Finance Division out of total Rs9.4337 billion.

wB to support development of tourism sector ISLAMABAD

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he World Bank would be supporting Pakistan Tourism Development Corporation (PTDC) in developing the tourist facilities and resorts in the country by sponsoring different projects. This was decided in a meeting held here between PTDC and the World Bank delegation.

Managing Director PTDC Abdul Ghafoor said that the bank was also supporting China Pakistan Economic Corridor (CPEC), besides several other development projects were ongoing, through which, over 3 billion people will reap the the benefits. PTDC will develop tourist facilities and resorts along the CPEC through joint ventures as well as securing private investments. After restoration of peace in the country, a remarkable increase in foreign tourist flow has been witnessed as compared to previous years. The projects included Bus Terminal at Nankana Sahib, Motel at Hawks Bay, Karachi, Moenjodaro Motel at Baran Kalay and Tourist Facilitation Centres at Karachi, Lahore, Islamabad, Muzaffarabad, Gilgit, Peshawar and Quetta. He informed the delegation that a number of lands owned by PTDC were open for investment specifically meant for tourism projects located at for construction of Ski Resort, Islamabad.

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Rupee rises against major currencies, except dollar KARACHI

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he rupee has been appreciating against all major international currencies, except the dollar, making it harder for exporters to keep their products globally competitive.

The monetary Policy Information Compendium for January issued by the State Bank of Pakistan (SBP) re-

veals that the Pakistani currency appreciated against global currencies during the Qirst seven months (JulyJan) of the current Qiscal year.

According to the report, the rupee appreciated 3.63 per cent against the euro during the period under review. The European currency matters signiQicantly for Pakistan because exports to the European Union have a sizeable volume.

Pakistan’s exports have been declining for the last three years as ex-

porters claim the high cost of production has rendered their products uncompetitive. China and India have emerged as the biggest competitor of Pakistan in the international market. Both countries are taking advantage of the economies of scale and producing cheaper products.

The rupee also appreciated 7pc against the pound in the sevenmonth period. It is reQlected in the decline in exports to $784m in the Qirst half of 2016-17 compared to

$822 a year ago. Pakistan’s exports to the United Kingdom in 2015-16 were $1.628 billion. Exports to entire Europe in 2015-16 were $7.073bn. The local currency also appreciated 10.5pc against the yen during the period under review as opposed to a deprecation of 5.5pc in the same period of the last Qiscal year. The appreciation affected Pakistan’s exports to Japan, which are already in favour of the latter. Pakistani exports fell to $84m from

$91m a year ago. Exporters have been demanding the rupee’s devaluation against the dollar to boost exports. However, in the Qirst seven months of 2016-17, the rupee depreciated only 0.02pc against 3.02pc in the same period of the last Qiscal year. Although the rupee depreciated 2.24pc in the open market (against 3.6pc a year ago) during July-Jan, the SBP strictly monitored the dollar rate and did not allow it to cross Rs105.

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LAHORE

m hAYAT

www.customstoday.com ollector (Preventive) ZulQiqar Younis has said that the Anti-Smuggling Operation Management System (ASOMS) would control manipulation of smuggling detection record as well as help the Customs Department’s high-ups to monitor the location and ofQicial activities of the Qield staff.

While talking to the state-owned news agency, the collector said that the ASOMS, developed by the Customs Department in collaboration with the Punjab Information Technology Board (PITB), was adopted in the collectorate operational system on test-run basis, to control smuggling and related activities speedily and effectively.

The collector said that the software would help remove ambiguities and generate computerised ‘Detention Memos’ and ‘Seizure Reports’ which were earlier being written manually by the detecting ofQicials.

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Wednesday, February 1, 2017

“DeQinitely, computerization of Customs Department will amply improve its operations, and secondly, the importance and work-load of Customs operations will increase manifolds with the fast completion of projects under China-Pakistan Economic Corridor,” he maintained. The collector (Preventive) said it had also been decided to change the Customs staffers at airports after every four months to avoid monotony and give relaxation time to ofQicials performing hectic duty of public dealing.

This would also improve the overall working and operation of the Customs Department, he maintained.

Regarding behavioural change in the Customs ofQicials performing duties at public places especially airports and ports, he said that Model Customs Collectorate had also hired services of Soft Skill Expert, Prof Syed Qasim Ali Shah, who was holding sessions for bringing a positive change in the ofQicials behaviour, while a retired senior ofQicer of Customs (Preventive) Muhammad Shehbaz was focusing on professional capacity building of the ofQicials.

To a question, ZulQiqar Younis said he had

had successful meeting with ofQicers of Punjab Forensic Science Laboratory, who offered to conduct forensic test of the mobile-phone and laptop data of smugglers. “Of course, we will send the smugglers cellular phones and laptops to the forensic laboratory for unlocking of their passwords and detailed analysis their data,” he maintained.

are softw e h t t and d tha uities or sai g t i c b e l l m tion The co p remove a Deten ‘ l d e e h s i ch would puter s’ whi m t r o c o p e at ly re Re gener anual Seizu ‘ m d n n e a t s’ writ memo s being r e i fficial l o r a g e n i e t wer detec by 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

Imf’s growth projection for 2017

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s the world economies are passing through a transitionary period, the International Monetary Fund has projected new growth rates for the developed and emerging economies during the next two years.

However, it has also warned the nations of worse scenario in one year after Trump administration takes over in the United States. The fund projects the global growth rate at 3.4 percent for 2017 and 3.6 percent for 2018, up from the overall growth projection of 3.1 percent in 2016. For Pakistan, it has projected the growth rate at 3.1 percent for 2017 and 3.5 percent for 2018. However, for 2017 the projection is 0.3percent less than the fund’s estimates issued in October 2016. In the meantime, Pakistan will continue to benefit from low oil prices in the international market which have fallen by 70 percent in recent years.

According to the fund, the oil prices will gradually increase from an average $43 a barrel last year to $50 a barrel in 2017.The world is already cautious about coming Trump administration which is apparently ready to open various fronts in many countries of the world. It is trying to introduce protectionism in the United States to safeguard the local industry, but the step will affect most of the economies of the world. The Trump administration is expected to start a showdown with China on the issue of South China Sea and with Pakistan on the behest of India and Afghanistan. The economists are not ruling out a new economic order in the world if the new US administration goes against traditional norms and diplomacy. The European Union is already warning the United States on various economic and political issues. In its report, the fund has also warned possible widening of imbalances due to restrictions on the global trade. The European Union has made a strategy to deal with the emerging situation while China has also warned the coming United States administration about its policy on South China Sea and Taiwan. From the Pakistani perspective, there is a need to overhaul the entire tax system as well as trade and investment policies. So far, Pakistani entrepreneurs have concentrated on the traditional products which have good market within the country.

potentials of economic zones T

LAHORE

DR AfTAB AfZAL

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he federal government is planning to establish 29 Special Economic Zones (SEZs) in all of the four provinces of the country as part of the China-Pakistan Economic Corridor. The zones are expected to expand volume of the economy and give impetus to the industrial growth in the country. The corridor project is being seen as the game changer not only for Pakistan, but also for the region as it will not only develop industrial base of the country, but also infrastructure on the modern lines. According to experts, Pakistan could not utilize full potentials of the economic

zones so far and is lagging behind the countries in the region in terms of GDP growth and industrial surplus. India in the neighborhood is using its huge population as engine of growth to enhance its business and industry. As comparison to India, Pakistan is in better position to use human and natural resources for the beneQits of the economy. The government only needs to facilitate not only Chinese investors, but also entrepreneurs from European countries at the special economic zones. The actual environment of Pakistan is different what is being depicted in the western media. There is need to create awareness about Pakistan in the international community, especially the business community.

Apart from special economic zones, special export processing zones are also need to be enhanced where foreign investors should be allowed to set industries at minimal tax rates. All electricity, infrastructural facilities and security should be provided to them. A businessman only wants protection of his capital and it is not difQicult for the government to ensure security of the capital and security of life and property to the foreign investors. Pakistan should adopt Dubai model where the economy is based on business and not on oil. With a population smaller than a small Pakistani city, the leadership of Dubai has created not only a conducive business environment, but also turned desert areas into one of the most

expensive real estate sectors in the world. The prices of real estate in Dubai are equal to Manhattan.

This could be only made possible by adopting revolutionary business and trade policies of the government in that country. Pakistan has better location than the deserts of Dubai and can turn Pakistan into the most modern technologically advanced country if prudent policies are adopted. According to economists, the proposed Special Economic Zones will include various types of specialized zones with speciQic types of enterprises operating in a welldeQined geographic area. Pakistan’s economy has been at takeoff position for the last many years, but hostile forces are active to stop it in the midway.

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US border tax ideas roil oil markets HOUSTON: As with many industries now fretting over the uncertain future of US trade policy, the oil business is sizing up the potential impact of the various protectionist measures being bandied about Washington – which have sent crude markets into a tizzy. The trade proposal with the most momentum may be the controversial tax reform, pushed by Republicans in Congress that could slap a tax of up to 20 percent on all imports, including crude oil. That would spark a rise in fuel costs across the country that would hurt east and west Coast refiners more than those near the Gulf of Mexico. It would also hit the pocketbooks of drivers and airline passengers, as refiners pass on the nearly $30 billion that the tax could cost them each year on crude imports. “The consumer is really the one that suffers,” Cynthia Warner, executive vice president for operations at refiner Tesoro Corp.

president SccI applauds pm package of Rs180b for exports SIALKOT

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resident Sialkot Chamber of Commerce and Industry (SCCI) Majid Raza Bhutta has welcomed and lauded the package for exports announced by Prime Minister bearing incentives worth Rs180 billion in a bid to boost Pakistan’s declining exports. In a press

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statement, he said that the package would be a most confidence building and immensely motivating measure that would help in boosting exports. “Undoubtedly, the package would strengthen country’s economy by manifold increasing exports and creating employment opportunities” he added. SCCI president was of the view that under Prime Minister’s dynamic leadership, with CPEC turning into reality, the exporters are enthusiastic and keen to multiply exports supported and backed by biggest Special Package that is quite unprecedented in country’s history.

The President further assured the prime minister to achieve substantial growth in exports by making all out efforts with spirit of nationhood believing export is the lifeline of the economy. He said that the incentives announced on all the value added sectors at 7% but the rate of rebate for surgical instruments, cutlery products and hollow-ware is 5% which is against the spirit of the package meant for value added export sectors. The president expressing his concerns said that the respective sectors have an international reputation and demand, having immense potential of growth, which can truly be exploited if equal facilitation. –CB Report

Wednesday February 1, 2017

Chambers

govt asked to improve industry’s competitiveness I

ISLAMABAD

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SLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) Senior Vice President Khalid Malik has said that enhancing the productivity, quality and innovation (PQI) was vital to improve competitiveness of industry and called upon the government to cooperate with private sector in implementation of PQI framework that would make Pakistan a globally competitive country. He said government should arrange international experts that should help the local industry in improving its competitiveness. He was talking to a delegation of PQI Secretariat that visited Islamabad Chamber of Commerce and Industry led

by Dr. Woon Kin Chung, Asian Productivity Organization Expert and former CEO of Singapore Productivity Centre. Mr. Arsyoni Buana, Program OfQicer of APO, Syed Salman Masood Manager Special Initiatives and Muhammad Zafarullah Acting Manager Training of National Pro-

ductivity Organization were also present at the occasion.

Khalid Malik said according to Global Innovation Index 2016, Pakistan was ranked 119th amongst 128 countries and this disappointing situation called for urgent formulation of policies that should encourage productivity, quality and innovation in private sector. He said that private sector was taking initiatives to improve competitive-

ness by bringing in latest machinery and technology and added that government support was key requirement for implementation of PQI framework. He said that there was a need to develop a synergy between government, private sector and academia to achieve PQI objectives. He was optimistic that PQI implementation would accelerate industrialization, improve economic growth and make Pak-

Shamim firpo demands effective & result-oriented strategy

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KARACHI

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resident of the Karachi Chamber of Commerce and Industry (KCCI) Shamim Ahmed Firpo, while expressing deep concerns over rising street crimes all over the city, urged the Law Enforcement Agencies (LEAs) to devise an effective and result-oriented strategy to completely thwart rising street crimes, which continue to haunt the citizens who are terribly frightened all the time on the streets of Karachi.

In a statement, President KCCI said that although substantial improvements have been witnessed in dealing with target killers, kidnappers, extortionists and terrorists after the commencement of Karachi

Operation in 2013 but the street crimes, pertaining to snatching cash, mobiles, motorcycles, cars and other valuables, continue to worsen in every nook and corner of the city where Karachiites were fearlessly being looted not only during wee hours but also in broad daylight at some of the busiest streets.

President KCCI said that street crimes have triggered a persistent element of fear while commuting around which also restricts business growth as consumers tend to minimize their shopping amid fear of being robbed on the streets and the businesses particularly retailers have to bear the additional burden of security costs. He said that it was a matter of grave concern that 60 locations of the city have been identiQied as highly unsafe where

incidents pertaining to street crimes were frequently being reported every day but disappointingly, the elements responsible for carrying out criminal activities in these areas on a gunpoint were not being apprehended. “Carrying pistols and fearlessly looting the masses at a location where police mobiles can easily be seen nearby carrying out snap checking or patrolling gives an impression that these criminals were probably carrying out their looting activities in close connivance with local police”, he added. Referring to a statement

by CPLC chief, President KCCI acceded that it was a very serious issue that around 60 motorcycles and 35-40 mobile phones were either being snatched or stolen daily in Karachi which is intolerable.

istan an attractive destination for local and foreign investment.

Speaking at the occasion, Dr. Woon Kin Chung, APO Expert said that he has been engaged by the Government of Pakistan for developing Productivity, Quality and Innovation (PQI) Framework and the purpose of his visit to ICCI was to take the input of private sector to accomplish this task in consultation with all stakeholders.

ImE cement exports to begin in 3 months ement trading will resume at Iran Mercantile Exchange’s board of exports in the Iranian month of Ordibehesht (April 21-May 21, 2017), the head of Cement Employers Association, Abdolreza Sheikhan, has announced. The official added that cement will also be listed on the domestic trading board as soon as the glutted local market is balanced by boosting exports, SMT Daily reported. The CEA broke the news of cement trade resumption at IME back in November, saying it would begin as of the fourth quarter of the current fiscal year (December 21-March 20). By delegating cement trade to IME, the association seeks to curb unhealthy competition among producers, which has disrupted the market’s balance and led to low prices. Iran Mercantile Exchange is a commodities exchange located in Tehran. –CB Report

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Customs valuation issues reference value of PU soles Wednesday February 1, 2017

National fST adjourns hearing of complaints filed by fBR employees ISLAMABAD

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KARACHI: Directorate General of Customs Valuation has issued reference values for PU soles. The directorate general has initiated an exercise to develop database values for different items whereas it has been observed that declarations are of wide range and do not correctly reflect values of the items as traded in the international market.

During the scrutiny of previous clearance data, it has been observed that PU Soles for Shoes falling under PCT heading 6406.2090 are being assessed at different values and certain transactions are on very low side.

faisalabad ASo seizes drugs valued Rs841,000 at Shahkot Toll plaza T

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ederal Service Tribunal (FST) adjourned hearing on a number of complaints filed by employees of Federal Board of Revenue (FBR). FST benches comprising Members Syed Rafique Hussain Shah and Dr Nazir Saeed heard the complaints. Both benches adjourned hearing of cases to different dates after hearing brief arguments and issuing directives to the counsels. Syed Rafique Hussain and Dr Nazir Saeed heard Abdul Hakim Khan’s petition on ‘Implementation’, Abida Aslam Rathor’s case on reversion, Shafqat Rasool Sindhu’s submission on censure, and Aleem Ahmed’s case about his Seniority.

After hearing brief arguments, the bench directed the counsels to conclude their arguments on next date of hearing and then dated in office hearings on the cases. The bench also heard cases filed by M Waheed, Anjum Rasheed, Waseem Iqbal, Anjum Waheed, Said Hussain Abbasi and Abdul Sattar.

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faisalabad customs adjourns 53 seizure cases in Dec 2016 he Collectorate of Customs Adjudication adjourned hearing of 53 seizure cases worth Rs88.279 million during month of December 2016.

Sources told Customs Today that Collector Customs Adjudication Raja Tahir Majeed adjourned the hearing of four cases involving amount worth Rs11.095 million regarding seized items. These items consisted of vehicles, ladies fabrics, baby shoes, televisions, mobile phones and remote controls. Sources said that Additional Collector Beelam-ur-Ramzan adjourned hearing of 15 cases involving amount of Rs37.799 million, while Deputy Collector Asma Hameed adjourned 34 cases involving amount Rs39.385 million. –CB Report

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he Customs Anti-Smuggling Organization (ASO) Faisalabad has seized items, including gutkas and cigarettes worth Rs 841,000. As both items are considered drugs therefore a big amount of tax and duty valued Rs 2.5 million has been assessed against them.

Sources told Customs Today that ASO Deputy Collector Rizwan Khan, after getting a tip-off regarding the smuggling attempt, formed a team following the instructions of Collector Dr Zulfiqar to foil the bid.

The team, comprising Superintendent Saeed Akhtar Joiya, Inspectors Khalid Ashraf Noor, Mehmood Ahmed Dogar, Ali Zahid

and Sepoys Muhammad Khalid, Dilawar Hussain, Afzaal Hussain, Muhammad Naeem, Muhammad Anwar and Muhammad Yasin, raided the Shahkot Toll Plaza

Sheikhupura-Lahore Road, Faisalabad, and found the goods lying on road near the said toll plaza.

The Anti-Smuggling Organisation recovered imported cigarette

lighters numbered 724 pieces, Guru Tobacco No: 126 done 50 tin boxs, Guru No: 300 numbered 70Tins, Gutka numbered 2000-Pcs, Tara Niswar pieces numbered 3000, B&H Cigarettes done 50 cartons, Milano Cigarette numbered 450 cartons, Marlboro Cigarettes numbered 70 cartons, Pine Cigarettes done 50 cartons, Ashmina numbered 50 cartons, Zen Blue done 50 cartons), London Cigarettes numbered 12 cartons and Pan Qawam done 300 pieces. The goods were loaded on a rickshaw which was also impounded. The customs demanded the legal documents of the goods from the accused but he failed to provide them to the authorities concerned. Later, the seizure report was submitted to the adjudication department for further investigation.

Sialkot customs to launch crackdown on petrol pumps

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he Pakistan Customs Department and Customs Intelligence are all set to launch a major crackdown on the petrol pumps located in outskirts of Gujranwala region which are involved in sale of smuggled Iranian fuel, it is learnt. The operation will be launched by the Anti-Smuggling Organization (ASO) of the Model Customs Collectorate (MCC) Sialkot and Customs Intelligence and Investigation Department against six districts of Gujranwala Region namely Gujranwala, Sialkot, Gujrat, Narowal, HaQizabad and Mandi Bahawaldin.

It is worth mentioning here that earlier the ASO of MCC Sialkot and Customs Intelligence and Investigation Department had launched operations against more than 12 fuel stations in Gujranwala Region. According to sources, now the grand operation will be conducted on GT and other main roads. Sources told Customs To-

day that the department concerned will also raid shops in rural areas where shopkeepers are sell-

ing smuggled Iranian fuel.

Assistant Collector and Incharge ASO of MCC Sialkot Ali Mo-

htashim Minhas said the ASO will tighten the noose around the neck of sellers of smuggled Iranian fuel.

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Faisalabad FIA arrests illegal money changer FAISALABAD: The Federal Investigation Agency (FIA) arrested an illegal money changer during an operation. The accused was running business of hawala and hundi in Faisalabad.

Sources Told Customs Today that Deputy Director FIA Syed Imam Zaidi along with Sub Inspector Ajmal Hussain followed a lead regarding a business of hundi and hawala at Katcheri Bazar, Faisalabad and arrested the accused. The accused was identified as Kamran Aslam son of Muhammad Aslam having CNIC No: 34101-2600404-3 a resident of Faisalabad.

The FIA team recovered huge amount of foreign and local currency being use in the illegal business. The FIA team also confiscated the mobile phones of the accused as evidence.

The FIA team registered a case and bar the accused.

customs Adjudication collects Rs165m & decides 174 cases till Dec FAISALABAD

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he Faisalabad Customs Adjudication has collected revenue worth Rs 164.875 million and decided almost 174 cases up to the end of December 2016. Sources told Customs Today that the Faisalabad Adjudication Collectorate issued Order-in-Original (ONO) in all the cases in favour of the Model Customs Collectorate ( Mcc ), Faisalabad, and Customs Intelligence and Investigation (I&I), Regional Office, Faisalabad. The Adjudication Department heard cases of smuggled vehicles, auto-parts, silk cloth, diesel generator, Iranian diesel and other

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items brought into country without paying customs duty and taxes during the above said period. As per details, Customs Adjudication’s Raja Tahir Majeed decided seven cases involving Rs 50.592 million while Additional Collector Beelamur Ramzan settled 38 cases involving duty taxes worth Rs 62.679 million. Meanwhile, Deputy Collector Adjudication Faisalabad Asma Hameed solved 129 cases involving Rs 51.604 million and announced a decision in favour of the Customs Intelligence and Investigation, Regional Office, Faisalabad, up to December 2015-16. Meanwhile, The Collectorate of Customs Adjudication adjourned hearing of 53 seizure cases worth Rs88.279 million during month of December 2016.

Sources told Customs Today that Collector Customs Adjudication Raja Tahir Majeed adjourned the hearing of four cases involving amount worth Rs11.095 million regarding seized items. These items consisted of vehicles, ladies fabrics, baby shoes, televisions, mobile phones and remote controls.

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hyderabad customs earns Rs15.9m revenue through auction in h1 of fY2016-17 T

HYDERABAD

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he Model Customs Collectorate generated Rs15.9 million through auction of seized goods during Qirst half of Qinancial year 2016-17.

According to details, the auction was conducted under the supervision of Assistant Collector Shahid Iqbal and in the presence of Deputy Superintendent Syed Saleem Shah, Inspector Saleem Ajmairi, Inspector Abdul Rauf Qureshi, Inspector Allauddin Kaim Khani and Hawaldar Mohammad Hussain.

These goods presented for auction were seized by Hyderabad customs in different operations and includes impounded vehicles, Iranian high speed diesel and other miscellaneous goods.

The auction of impounded vehicles and other miscellaneous goods generated Rs64,73,230 while the diesel earned Rs41,18,708 for the department.

The customs ofQicials participated in the seizure operations includes Deputy Superintendent Sikander Akbar Panhwar, Inspector Waqar Ahmed Baig Inspector Nazim

Ali, Inspector ShaQi Muhammad Jamali, Inspector Shakeel Khan and Inspector Mushtaq Ali Lakho.

Meanwhile, The Customs Intelligence and Investigation (I&I) Field Investigation Unit (FIU) confiscated 5,000 liters Iranian diesel worth Rs 3, 70, 000 along with offending Bedford oil tanker worth Rs 8, 00, 000 in an operation during first week of January 2017.

Director General Shaukat Ali told Customs Today that the Customs In-

Wednesday February 1, 2017

telligence received credible information regarding the transportation of foreign origin high speed diesel (HSD) in Hyderabad during the above said period.

The director general immediately constituted a team comprising Deputy Superintendent Qasim Ali, Intelligence OfQicer Irfan Ghani, Sepoys Muhammad Imran, Noshad Khan, Moin Khan, Aslam Chohan and Drivers Rao Abdul Sattar, Janib Crob and Haneef Somroo.

Sukkur customs confiscates smuggled items worth Rs4.6m HYDERABAD

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he Customs Anti-Smuggling Organization (ASO) and Customs Preventive Sukkur in a joint operation confiscated 109 cartons of foreign origin cigarettes, fabric, 20 bags gutka, 100 cartons of foreign origin chocolate, blankets, LCDs, 30 liters of super oil and other items worth Rs4.6 million involving duty and taxes Rs2.8 million in Sukkur. Sources told Customs Today that Collector Agha Shahid Majeed Khan received credible information about transportation of non-duty paid goods through National Highway.

Agha Shahid immediately constituted a team under the supervision of Additional Collector Rehmatullah Vistro and instructed them to foil the smuggling attempt. The ASO team with the assistance of the customs preventive Sukkur started searching vehicles near check post Jacobabad. While searching the vehicles, the ASO team intercepted a Sada Bahar passenger coach bearing registration No: JB-3486 loaded with miscellaneous non-duty paid items.

The ASO team recovered 109 cartons of cigarettes (Pine and Royal), 39 cartons of fabric, 20 small bags of gutka.

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42pc people repose confidence in nAB: Qamar Zaman

N LAHORE

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ational Accountability Bureau Chairman Qamar Zaman Chaudhary has said that eradication of corruption is vital to make country’s economy strong.

Addressing as chief guest at a ceremony organized by Rawalpindi Chamber and Commerce and Industry (RCCI), he said that NAB was committed to make Pakistan a corruption free country. Raja Amer Iqbal, president RCCI, ex-president and senior members of Rawalpindi Chamber and Commerce and Industry (RCCI) attended the ceremony which was

held at RCCI Rawalpindi Auditorium.

The chairman NAB said that corruption was not only a vice but also it triggers a chain reaction and leads to injustice and deprives people of their due rights. He said that NAB was established to eradicate corruption in a holistic and integrated manner. This is the backdrop against which NAB is striving to accomplish its mission i.e. to rid the nation of corruption and corrupt practices.

NAB is essentially a complaint driven organization.

He said that starting with the year 2014 which can be called basically a year of re invigoration of NAB, we have moved with new zeal and effort. Through detailed intro-

spection and analysis of organizational weaknesses, overhaul of procedures and business processes, all pillars of the organization i.e. Operations, Prosecution, Human Resource Development and Awareness and Prevention have been reactivated. Organogram was revisited to transform NAB into a lean, efQicient, and responsive organization.

The chairman NAB said that to close the possibility of any single NAB officer/official influencing the discharge of official business, the concept of a “Combined Investigation Team” (CIT) was introduced where two investigation officers and a legal consultant are working as a team for a fair, transparent and

unbiased, inquiry/ investigations.

To ensure objectivity and standardization across the board, the Standing Operating Procedures (SOPs) were examined and revisited through a participative exercise spread over four months for up-gradation and implementation.

These SOPs are placed on NAB’s website for convenience of all individuals interacting with NAB. He said that NAB has decided to fix time limit for each step of enforcement i.e. 2 months for Complaint Verification, four months for Inquiry & four months for Investigation. A total of 10 months have been laid down from start – to its logical conclusion as per law.

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Philippines may import apples from Iran Wednesday February 1, 2017

World

MANILA: The government in the Philippines is looking into allowing imports of Iranian apples. In a meeting between Ambassador to the Philippines, Mohammad Tanhaei, and Filipino Agriculture Secretary, Emmanuel F. Pinol, the proposal for the introduction of the fruit was discussed.

Pinol told Tanhaei that as part of the standard procedure, the Philippine Department of Agriculture is finalizing the Pest Risk Analysis of apple samples.

“I’m still waiting for the results, and if everything turns out okay, rest assured that (the document on) importation of apples is ready for signing,” Pinol was quoted as saying by the state-owned Philippine Information Agency.

Dutch women jailed for smuggling £88,000 of cocaine

SARS customs seize counterfeit sneakers

AMSTERDAM

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Subaru plant to produce in Thailand uji Heavy Industries Ltd (FHI), the manufacturer of Subaru cars, yesterday announced plans to form a joint venture in February with TC Manufacturing and Assembly (Thailand) Ltd (TCMA TH), a subsidiary of Tan Chong International Ltd, to start production of Subaru vehicles in Thailand.

Currently, Subaru vehicle production in Southeast Asia is conducted at the completely knocked down assembly plant for Tan Chong Motor Assemblies Sdn Bhd in Malaysia, which builds the Subaru XV and the Forester. With a view to enhancing Subaru’s competitiveness and further growth in Southeast Asia, FHI has decided to start production in Thailand through a joint venture company, Tan Chong Subaru Automotive (Thailand) Ltd, 74.9% of which will be owned by TCMA TH and 25.1% by FHI. Production in Malaysia will continue, and Tan Chong International will sell the vehicles. –CB Report

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hree Dutch women have been jailed for smuggling £88,000 of cocaine into Britain in their knickers.

The trio – who were travelling on a Eurolines coach from Amsterdam – were stopped by Border ofQicers in Dover, Kent, in December last year.

And when ofQicers asked them if they were bringing in any drugs the mothers stunned guards by producing 740 grams of cocaine from their underwear . Now the three smugglers: Cristy Cicilia,35, Michelnelle Martin,38, and Nataly Welvaart,35, all from Rotterdam have received jail terms totalling 14 years. Their barrister Niall Doherty told Canterbury Crown Court that all three were in debt and agreed the drugs run for cash. “They took a huge risk when they agreed to be couriers. And they

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got caught and now they are devastated knowing the consequences they face.” Meanwhile, Panama’s Food Safety Authority (AUPSA) seized two containers with purple and yellow onions from the Netherlands at the Port of Balboa. Their arrival was irregular as the onions had been harvested more than 120-days ago, which is the maximum period of time

established by the Fresh Onion Bulbs Export Protocol between the Netherlands and Panama. Danny Diaz, the head of Customs said that the period between the products harvest and its date of sale couldn’t exceed 120 days.

“This applies to each of the lots that make up a shipment, they must comply with Panama’s plant health and quality regulations for onions.

Vnukovo airport ex-customs chief arrested in absentia for smuggling

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oscow’s Meshchansky District Court has issued an arrest warrant in absentia for former Vnukovo Airport Customs Chief, General Yury Shebunyayev, who stands charged with smuggling, the court’s spokesperson Julia Bocharova told RAPSI on Tuesday.

Earlier, Shebunyayev was put on the international wanted list.

According to investigators, acting Deputy Head of the airport’s customs Roman Kurzenkov has organ-

ized smuggling of goods from Turkey held for sale through Vnukovo customs. Several Vnukovo employees were arrested. Deputy chief of the airport’s customs post Vyacheslav Latskikh was detained.

Head of the airport’s customs department Mikhail Fast, Chief State Customs Inspector of Vnukovo Igor Kudryashov and Ex-Deputy Chief of a special customs procedure department Alexey Plitin were put under house arrest. –CB Report

ARS Customs made a massive seizure of suspected counterfeit sneakers to the value of R8,7 million at Lebombo border post early on Monday morning. A total of 9085 pairs of ‘Adidas’-branded sneakers and 1850 pairs of ‘Nike’-branded sneakers were discovered in a white truck entering South Africa.

The truck driver ignored requests from Customs officials to stop at the port check point.

Customs officials identified the truck as having been detained in July this year with a consignment of clothing.

SARS Customs and South African Police Service (SAPS) officials pursued the vehicle and stopped it outside the port area.

The male driver fled on foot. No

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arrests were made as yet. The truck was escorted to the State warehouse where the consignment was detained for counting of sneakers. Brand holders within South Africa will be required to do an authentication process.

Contravention of the Customs & Excise Act, Counterfeit Act and Criminal Procedures Act is being investigated.

SARS expressed its gratitude to Customs staff deployed at the respective ports of entry during the festive period as well as other law enforcement agencies.

‘Customs officials are amongst the staff that are on duty throughout the December holiday period and they are required to remain vigilant and committed at all times. This bust demonstrates the consistence of our Customs team members who continually make SARS proud. SARS thanks other law enforcement agencies at the respective ports for their cooperation and support’.

china, Switzerland sign AEo agreement hina and Switzerland have signed a customs agreement on mutual authorized economic operator (AEO) status, a move that will further boost bilateral trade and economic cooperation, the country’s top customs authority said on Saturday.

Chinese companies that obtain the AEO status will enjoy the same simpliQied customs procedures as native Swiss companies when their products enter Switzerland, the General Administration of Customs said in a statement on its website. According to the World Customs Organization (WCO), an AEO is an organization or company involved in the international

movement of goods that has been certiQied by, or on behalf of, a national customs administration and complies with WCO or equivalent supply chain security standards. China and Switzerland launched AEO negotiations at the start of 2015, and Qinally reached the agreement this month after three rounds of talks. AEO programs are expected to play a key role in boosting the country’s exports amid sluggish global demand, according the statement. China’s exports dipped 2 percent year on year to 13.84 trillion yuan last year, while imports rose 0.6 percent from one year earlier to 10.49 trillion yuan. –CB Report

Anglogold plans more than 800 job cuts in S Africa

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ngloGold Ashanti is in talks with unions to lay off nearly 900 workers at its South African operations, a document obtained by Reuters showed on Thursday. Africa’s biggest gold producer employs about 25,000

people in South Africa, whose vast resources are accompanied by the risk of volatile labour relations, rising costs, regulatory disruptions and dizzying shaft depths.“AngloGold Ashanti’s South Africa region is contemplating the dismissal of certain employees on the basis of its operational requirements,” said a letter dated January 17 signed by AngloGold

Ashanti Chief Operating Officer Chris Sheppard. The letter, addressed to unions, pegged the number of workers to be laid off at 849.

AngloGold, which vies with Gold Fields, Harmony and Sibanye Gold in South Africa, declined to comment on the number of jobs at stake but confirmed that it had started talks with unions and reg-

ulators that could lead to job cuts.

“Part of this process of engagement entails the necessary creation of a more sustainable and cost effective South African business that better reflects the realities of the operating environment,” spokesman Chris Nthite said. “While some roles may be affected in this process, job cuts will always be a last resort.”

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Peshawar Customs generates Rs517.47m during first two weeks of Jan ISLAMABAD: Peshawar Customs collected Rs517.47 million during 1st January to 15th January of financial year 2016-17 under the head of all duty taxes including customs duty, sales tax, reduction duty, export development surcharge additional income tax and federal excise duty on imports.

Customs official told Customs Today that during first half of January the collectorate collected Rs173.89 million under the head of customs duty as for as Peshawar Customs collected Rs18.76 million under the head of miscellaneous duty surcharges adding that the Collectorate collected revenue Rs8.71 million under head of reduction duty on imported items.

customs Appellate Tribunal hears tax matter filed by m/s warid Telecom

Wednesday February 1, 2017

National

new export package to help increase exports: LccI Vp nasir

customs valuation issues value of stomach tube KARACHI

ISLAMABAD

nAEEm uLLAh TARIQ

wAQAR AhmED AnSARI

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division bench of the Customs Appellate Tribunal dated in office the hearing of a customs reference on Wednesday wherein M/s Warid Telecom (Private) Limited had challenged an announcement made by the Model Customs Collectorate, Islamabad. Members Tribunal, Syed Muhammad Anwar and Muhammad Nasir Khan heard the matter and dated in office after submission of detailed records of the customs case by the departmental lawyer. During the previous hearings, the bench had directed the respondent’s counsels to submit detailed record before the court. M/s Warid Telecom had filed the case in 2016 against Model Coollectorate of Customs, Islamabad. Through the petition, the company had challenged a decision announced by department’s adjudication for sustaining claims of recoverable customs duty of around Rs 40 million.

irectorate General of Customs Valuati0on has issued the reference values for stomach tube. The directorate general has initiated an exercise to develop database values for different items wherein it has been observed that declarations are of wide range and do not correctly reflect values of the items as traded in the international market. During the scrutiny of previous clearance data, it has been observed that stomach tube falling under PCT headings 9018.3990, are being assessed at different, values and certain transactions are on very low side. The director general after carefully examining the clearance data, also conducted market inquiries to verify the authenticity of declarations. Online prices were also obtained to corroborate the findings of the market surveys. This office, therefore, has found that the customs values of stomach tube are $0.10/pc. These values are, however, for reference/guidance only and final assessment may please be made after considering other factors which have bearing on the customs value. The clearance collectorates may like to consider the values given above before finalizing the assessment of the subject items. If further fine-tuning in specifications and ensuing values are required, Collectorate may forward a reference along with detailed justifications a worksheets so that requisite adjustments are accordingly issued.

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peshawar customs collects Rs517.47m in 15 days odel Customs Collectorate Peshawar collected revenue Rs 517.47 million during first 15 days of January 2017 in head of all duty and taxes, sales tax, additional income tax and federal excise duty on Imports.

According to details, during above said period the Peshawar Collectorate showed exceptional performance and collected revenue Rs 173.81 million under head of customs duty (CD) as for as Rs 177.06 million under head of sales tax (ST). Sources told Customs Today that the Collectorate earned revenue Rs 162.35 million under head of total additional income tax (AIT) as for as the Collectorate collected revenue Rs 4.25 million under head of federal excise duty (FED) on imported items. –CB Report

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lthough a bit late, the export development package is a good development to a great extent. The new export package coupled with the improvement in the national law and order and energy output would help increase the country’s exports. These views were expressed

by Lahore Chamber of Commerce and Industry Vice- President Nasir

Hameed Khan while talking to Customs Today. He said the package has been worked out in such a way as to minimize the impact of 8 percent rebate that the Indian government gives to its exporters to compensate for the falling prices of commodities in the international market. He added although a little late, the export development package is a good mix.

Pakistani exports are passing through tough times due to increasing competition in a shrinking market. Exports have been showing a declining trend for the past many years, with the textile industry being the hardest hit and

the country’s exports peaked during the Qirst year of the incumbent government. He informed Customs Today that last year, total exports were $20.8 billion, down from around $25 billion in 2013-14. Not only have textile exports from Pakistan suffered, losing about a billion dollars just last year, but other export goods have also fared badly. There are many hurdles in the way of export growth which needs to be removed, he said adding, that businessmen have for long been complaining against an overvalued Pak rupee vis-a-vis the US dollar and higher wages announced by the government.

customs ASo impounds huge quantity of nDp vehicles

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ISLAMABAD

TARIQ DERYA

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he Customs Anti-Smuggling Organization (ASO) collected Rs 5.75 million from December 31 to January 9 of the Qinancial year 2016-17 and impounded offending vehicles worth Rs 3.3 million during the period.

According to details, the ASO seized four offending vehicles worth Rs 3.3 million and also including another one worth Rs 0.15 million.

During the above mentioned period, the ASO seized 3,664 yard foreign origin fabric worth Rs 1.8 million and also did 750 kilogram of food grains worth Rs 0.167 million.

From December 31 to January 9, the ASO staff earned of Rs 0.0105 million by seizing the food grains weighing 100 kilogram. During the same period, the ASO collected Rs 0.043 million by seizing 25 carpets and 20 blankets worth Rs 0.050 million. The ASO Islamabad collected revenue of Rs 25.37 million during the Qirst 15 days (From 1st to 15th of

December FY2016-17) by seizing the smuggled goods and non-duty paid vehicles. The Collectorate and Anti-Smuggling Organisation Islamabad impounded 12 offending vehicles worth Rs 13.4 million and two other ones amounting to Rs 2.74 million till 15th of December respectively. During the Qirst 15 days of December, the ASO seized offending vehicles, including Mazda truck, Bedford truck, Hino truck, Toyota Corolla car, Santro car, passenger busses, Mehran car, Hino buses and mini truck Mazda, from GT Road,

Rawalpindi-Peshawar. Meanwhile, Customs collected Rs517.47 million during 1st January to 15th January of Qinancial year 2016-17 under the head of all duty taxes including customs duty, sales tax, reduction duty, export development surcharge additional income tax and federal excise duty on imports. Customs ofQicial told Customs Today that during Qirst half of January the collectorate collected Rs173.89 million under the head of customs duty as for as Peshawar Customs collected Rs18.76 million.

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FIA detains notorious human trafficker in Lahore Wednesday February 1, 2017

Lahore

LAHORE: The Federal Investigation Agency (FIA) has arrested a notorious human trafficker involved in sending people abroad on fake documents.

According to a spokesperson of the FIA, an FIA team raided Thokar Niaz Baig and recovered nine Pakistani passports from the possession of the human smuggler.

According to him, fake visa stickers affixed on the recovered passports, bank statements, medical certificates and other relevant documents were also recovered from possession of the arrested accused. The FIA has registered a case under sections 17/18 E.O 1979 and 6 P.A 1974 PS FIA Lahore. The accused has shifted to unidentified location for further investigation and prosecution.

mobile smuggling case: customs court extends judicial remand LAHORE

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he special federal court of customs, taxation and antismuggling has extended the judicial remand of an accused arrested from Sialkot international airport. According to details available to customs today an accused who was travelling from South Africa to Sialkot was checked by the customs ofQicials at the airport. Customs team during search of the luggage found 30 costly mobile phones hidden in baggage of Muhammad Sarwar.

Customs team arrested the accused and presented him before customs court for physical remand but customs judge denied the request of customs investigation team for physical remand and send him

to jail for judicial trial. Muhammad Sarwar also Qiled a petition for his Post arrest bail that has also rejected by the court.

Meanwhile, The Special Federal Court of Customs Taxation and AntiSmuggling adjourned the hearing of mobile phone smuggling case.

Earlier, the court had approved extension in judicial remand of an accused who was arrested by the customs authorities from Allama Iqbal International airport while making an attempt to smuggle cell phones from China to Lahore.

The Investigation and Prosecution (I&P) team of Customs Lahore had presented the accused Naveed Bhatti before the special court and asked for his physical remand of Qive days to investigate further regarding smuggling. After completion of physical remand the court sent him to jail for judicial trial which is extended again for 14 days.

customs I&I seizes Rs 10m non duty paid auto parts

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ustoms Intelligence and Investigations has conQiscated over Rs10 million non-cus-

fIA nabs human trafficker

fTo hears case filed by m/s Lavanza furnishers against RTo Lahore

IA Anti-Human Trafficking Cell arrested a human smuggler who was identified as Sajid Khan, son of Sher Muhammad a resident of Dera Ghazi Khan during an operation. The accused was impersonating himself as a doctor at Jinnah hospital Lahore. FIA recovered 9 passports, UAE visas, and visiting cards of doctor, medical certificates and stamp papers. FIA authorities told that the accused was already wanted in a case of FIA. Meanwhile, The Federal Investigation Agency (FIA) has booked two human traffickers in operations of two different areas. According to sources of Customs Today, the Anti-Human Trafficking Cell of the agency raided a locality of Lahore and arrested two accused named Mohsin Ali and Rana Irfan. Human traffickers were involved in sending many people abroad on fake documents. The Federal Investigation Agency (FIA) has registered cases against the culprits under sections of human smuggling and fraud with citizens. –M Imran Mehar

he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Qiled by M/s Lavanza Furnishers against the Regional Tax OfQice (RTO), Lahore until the next hearing. FTO Advisor Tariq Yousaf heard the case of M/s Lavanza Furnishers in which the counsel for the appellant argued that the RTO has not released the refunds to the appellant of the last two years. He said that the RTO collected excessive tax from the company during the last three years. The company approached the ofQicer con-

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cerned many times for issuance of the refunds but the department did not pay the refunds after the passage of reasonable time. Finally, the appellant decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. –Muhammad Nawaz

toms paid auto-parts from Multan Road, sources informed Customs Today. It was reported that on a tip off the customs I&I authorities intercepted two truck loaded with noncustoms paid spare parts which were coming from Quetta.

The sources said the customs authorities demanded legal docu-

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ments against the auto parts but the drivers failed to produce any relevant legal documents against the loaded auto-parts.

The sources informed that after being fully satisQied, the customs authorities impounded the two trucks and seized in the name of the state.

The sources further reported that these spare parts were being smuggled in the Lahore market in the disguise of cabins. The smuggled items were being brought to Bilal Gunj Market for commercial purpose, it was told. The sources said that the customs team was constituted by Director Customs Intelligence and Investigation Zeba Hai Azhar while it was led by Deputy Director Ali Zen Khan. On the other hand the drivers were of the view that the spare parts were imported legally and they would produce the documents of clearance. However, the customs authorities after registering a case have started further investigations into the matter.

custom Appellate Tribunal hears 46 cases

he Customs Appellate Tribunal heard 46 important cases.

The members of all benches from Lahore, Karachi, Islamabad and Peshawar heard the cases in Lahore and adjourned all the cases until the next hearing. Chairman Customs Appellate Tribunal formed special benches to decide the cases.

The Customs Appellate Tribunal special division bench comprising Member Judicial Bench-II Karachi Tahir Zia Mehr and Member Technical Bench-II Karachi Nazim Saleem adjourned 23 cases of Muhammad Nawaz versus customs Gujranwala, two cases of Murawat Khan and Wa-

teen Wimex versus customs Faisalabad, Honda Atlas cars two cases versus customs Lahore, Razik International and Bank of Khyber versus customs Lahore, Collector customs Faisalabad versus Nasrulla Khan, Amjed Javaid versus Customs Intelligence Faisalabad, Tawaz Khan versus customs Lahore. Furthermore, Customs Intelligence Lahore versus Tawaz Khan, Haji Meer Buksh versus customs Faisalabad, Collector customs Lahore versus Altaf Shaheen, different cases of Furukkah Naseem, Malik Zafer Jamshed Iqbal, Asad Mehmood versus customs Lahore. –Muhammad Nawaz

pcA detects Rs 1.08m tax evasion by m/s millstone

D LAHORE

m hAYAT

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irectorate of Post Clarence Audit has detected tax evasion of Rs 1.08 million by M/s Millstone Enterprises, Islamabad, on account of inadmissible exemption of SRO 567 (I)2006 and SRO 1007 (1)/ 2005. According to the details, the

Directorate of Post Clearance Audit Lahore observed that certain importers, having their principal activity of manufacturer of pesticide and other agro chemicals, are involved in the evasion of duties and tax during customs clearance of zinc sulphate 33 percent which are classiQied under PCT heading 2833, 2940. However, the importers are availing irregular exemption of cus-

toms duty under S. No. 4 of SRO567 (1)/2006 and exemption of sales tax S No. 5 of table -II of SRO 1007 (I) 2005. The PCA observed that the said SROs were meant for poultry ingredients only. It was observed that M/s Millstone Enterprises, Islamabad, imported two consignments of the aforesaid impugned goods which were prima facie were fertilizers and as such not entitled

for the exemption of customs duty and sales tax under the said SROs cleared from Customs Appraisement Karachi (West) during calendar year 2014. The PCA said that the mis-declaration resulted in the duty and taxes evasion to the tune of Rs 1.08 million and added that it is directed that the above mentioned short paid amount of duty and taxes may be deposited positively.

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Port of Virginia shutting down due to storm PORTSMOUTH: This weekend’s winter storm has forced the closing of the Port of Virginia. The Captain of the Port will shut down the operation at midnight. That means commercial vessels cannot enter or leave the Chesapeake Bay. The Coast Guard warns these weather conditions pose a danger to all vessels on the water.They’re warning boaters to not make plans to get underway until this storm passes. Cargo volumes at the Port of Los Angeles reached 8,856,782 TEU in 2016, marking the busiest year ever for the port or any port in the Western Hemisphere Port for that matter, the Port of Los Angeles said Thursday. The previous record was set in 2006, when the Port of Los Angeles handled 8,469,853 TEUs. The port finished the year with December volumes of 796,536 TEUs, a 27 percent.

port klang plans giant facility to compete with Singapore alaysia’s Port Klang Authority (PKA) wants to build a giant port on an island next to the country’s largest port, clashing with plans for two big ports coming up in nearby Malacca, about a two-hour drive away. The RM200 billion (S$64 billion) project mooted by the PKA will be built on Pulau Carey, which, at 13,000ha, is about 25 times the size of Singapore’s Sentosa Island. PKA chairman Kong Cho Ha said a new port is necessary to compete in the industry and also to vie for a bigger share of the container cargo trade from Singapore, The Star daily reported yesterday. Officials have also said that Port Klang, the largest in Malaysia, is

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reaching its maximum capacity. Some analysts question the need for a new port, especially one intended to compete with Singapore. “Creating another port that runs separately does not make sense. That is just bringing about excess capacity,” said Mr G. Durairaj, managing director of maritime and logistics consultancy PortsWorld.

A World Bank report commissioned by the government in 2015 said a new port on Malaysia’s west coast is not necessary, as existing facilities have yet to reach capacity, according to sources. Mr Durairaj said that a new port in Selangor would have only a “minimal impact” on Singapore’s shipping sector. Analysts see little chance that a new port would draw clients away from Singapore, pointing to factors such as critical mass and customer loyalty incentives. They also note that current ports in Johor, which are closer to Singapore, have not managed to make too big of a dent, adding that the global container-shipment industry has reached a plateau. –CB Report

Ports & Shipping

port expansion prepares Basilan for ASEAn integration LAMITAN CITY

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newly completed expansion of the port in Lamitan has made this budding city ready for ASEAN integration, Autonomous Region in Muslim Mindanao Regional Gov. Mujiv Hataman said Friday. Hataman and Basilan Gov. Hajimin Saliman-Hataman led the turnover of the P150-million port facility. Hataman said the project was part of the ARMM’s commitment to pour infrastructure support into Basilan to enhance the economic development of the province. The move is meant to complement moves by security forces to stabilize the province and Qlush out the Abu Sayyaf Group.

ARMM Public Works Secretary Don Loong said the port expansion means it can now accommodate more vessels, including roll on/roll off boats. He said the expansion readies Basilan for trade integration in the Brunei, Indonesia, Malaysia and the Philippines-East Asia Growth

Area (BIMP-EAGA). “It will lower the transport cost for the towns trading their goods outside,” Loong said. Vice Mayor Roderick Furigay said the port facility will help boost economic activity in the city, which is a rich source of rubber and copra. The city is also a trading hub for aquaculture products from neighboring towns.

“When people start to get busy from economic activities, this will help defeat the security problem,” Furigay said, citing the lack of economic opportunities as the main cause of law-

lessness in the past years. ARMM Gov. Hataman vowed to continue building major infrastructure projects in the Qive provinces of the ARMM but appealed to the provincial and local governments to shoulder the cost of maintaining the projects.

The regional governor said docking ports will be established in all island towns of the region and assured residents that no province will be left out. Hataman also inaugurated and turned over a P45-million water system in Maluso town.

Wednesday February 1, 2017

port of wilmington orders 2 new cranes at $27.4 million orth Carolina Ports has ordered two New Panamax cranes, and plans to purchase two more, as part of its ongoing infrastructure investment plan. When all four cranes have been purchased and delivered, the Port of Wilmington will feature a total of 10 container cranes operating over a 2,650 ft. area. The New Panamax cranes, which are expected to arrive in the spring of 2018, have a total estimated project cost of $27.4 million. Between additional projects such as the Turning Basin expansion project, the expansion of the container yard, and various other berth improvements, North Carolina Ports will be investing over $120 million into its infrastructure over the next few years. North Carolina Ports Chairman Tom Adams said in a news release that the investments are worth it. “North Carolina Ports’ expansion [will] enable shippers to gain unprecedented access to the U.S. East Coast,” he said. “The work underway will allow the Port of Wilmington to accommodate multiple post-Panamax container ships.” –CB Report

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port of halifax getting caribbean business T

WASHINGTON

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he biggest container cargo shipping line in the Caribbean is ditching Saint John for Halifax with a Qirst ship, the Vega Omega, to call on the Port of Halifax early Monday morning. “We were operating out of the Port of Saint John,” Gordon Cole, assistant vice-president of Tropical Shipping, said in an interview Thursday. “This is a complete switch.” Although Tropical Shipping’s roughly 20-person Canadian head ofQice will remain in Saint John, the shipping line’s vessels will now be calling on the Port of Halifax.

“Halifax just offered a lot more connectivity to global carriers and to intermodal opportunities,” said Cole.

With that strategic move, the shipping company is hoping to attract more container trafQic from global shipping companies that call on the Port of Hal-

ifax, and also transfer more container cargo to them. The Port of Halifax’s strong network of trucking companies and the service offered by CN Rail was also a big draw for Tropical Shipping. The company is currently building six new vessels, including two that will be plying Canadian waters, said Cole. “This is a new service for Halifax … (and) what is signiQicant is the connections this will bring,” Lane Farguson, a spokesman for the Halifax Port Authority, said in an interview Thursday. “This will open up new connections for the Port of Halifax.” Tropical Shipping’s Vega Omega will be arriving from St. Maarten at about 7 a.m.

Monday and then heads back south again to call on the Port of Palm Beach in Florida. In the shipping industry, the capacity of container cargo vessels is typically stated in terms of the number of formerly-standard 20-foot containers (TEUs) these ships can hold. By the standard of global ship-

ping companies, the Vega Omega is fairly small, at 1,118 TEUs, compared to some of the behemoths carrying as much as 9,400 TEUs which have called on the Port of Halifax in the past few years. But Tropical Shipping’s arrival in Halifax and the shipping line’s weekly service to Florida, the Bahamas, Puerto Rico and the Caribbean is being seen as a strong strategic move for the local port, which currently only has about 12 per cent of its total container trafQic going to or coming from the Caribbean and the Mediterranean.

During the third quarter of 2016, the Port of Halifax’s total container trafQic, both inbound and outbound, was 119,181 TEUs, which means about 14,300 TEUs of container trafQic from the Port of Halifax would have come from or gone to the Caribbean and Mediterranean during that time. Certainly, Halterm Container Terminal is expecting Tropical Shipping’s volume

of cargo to grow over the next few years. “The terminal can meet both Tropical Shipping’s performance needs in 2017 and plan for extended operations in 2018 through 2019 when Tropical will take delivery of larger-capacity vessels,” Kim Holtermand, Halterm’s chief operating ofQicer, said in a statement. Halterm currently employs about 100 longshoremen. The Vega Omega has the capacity to bring 550 containers through Halifax during the peak season, including more than 200 refrigerated containers for export.

“With our new vessels due to start service in June 2018, Tropical Shipping is working closely with Halterm, CN and the Port of Halifax to build on our specialized reefer trade, all the while enhancing our reputation for loyal customer service,” Tim Martin, Tropical Shipping’s vice-president of commercial and trades, said in a statement.

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Sialkot Customs recovers worth Rs15m heroin at airport SIALKOT: The Customs Preventive Staff recovered 650 grams heroin worth Rs6 million from a passenger who was due to leave for Sharjah on a private airline from Sialkot International Airport Limited (SIAL) on the other day. Reportedly, when a resident of Narowal district Muhammad Ali entered the airport lounge, the Customs Preventive staff started searching him. Inspector Customs Preventive Asad Ullah recovered 650 grams heroin from his bag. The accused was handed over to Sub-Inspector ANF Mian Bilal for legal proceeding.

Wednesday, February 1, 2017

CUSTOMS BULLETIN

‘Issue of non-customs paid vehicles parked in Dry port to be solved soon’ PESHAWAR nAEEm ShEIkh

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ollector Modal Custom Collectorate Peshawar Qurban Ali Khan said that the matter of illegal non custom paid vehicles parked in railway dry port would soon be resolved and it is depend on court that whether to charge the importer with Qines for using the land of railway dry port.

Talking to Customs Today Qurban Ali said that these vehicles has been parked in dry port since the era of temporary registration of non custom paid vehicles in 2012-13.

The custom payment and registration of vehicles was allowed only for those vehicles which were present inside the territorial jurisdiction inside the border of the country however some proQiteers illegally imported huge number of vehicles via Afghan border which had been seized by the custom ofQicials in 2012-13. He added that it took long time of four years to decide about the fate of these vehicles however the matter is under the court and now soon it would be decided to put these vehicles for auction or not.

Hundred of vehicles had been imported to the country at the time

of amnesty scheme to avail the concessional customs amnesty

scheme in Khyber Pakhtunkhwa and FATA. The importers however

were not allowed to bring new vehicles and scheme would be ap-

plied only for those which are registered in police stations.

pcA initiates evaded tax recovery plan KARACHI

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The Customs Post Clearance Audit (PCA) initiated recovery of evaded customs duty and tax through under-invoicing, which heralds a larger policy wherein government would ensure plugging of revenue leakage. According to details, the Directorate General of Customs Valuation pursuing the above said

plan has issued a number of valuation guidelines for the reference so that under invoicing could be eliminated. Now, PCA has started detecting clearance of imported goods on values lower than the reference values. A recovery in this regard has also been made.

Sources said that a policy is being planned at the helm of affairs where Prime Minister Nawaz Sharif, Finance Minister Ishaq Dar, Interior Minister Chaudhry Nisar and Advisor to PM Haroon Akhtar have agreed that under-invoicing and smuggling should be elimi-

nated for good.

On the Qinance side Ishaq Dar and Haroon Akhtar would ensure that revenue leakage is dealt with at the end of Federal Borad of Revenue (FBR) while Chaudhry Nisar would mobilize resources at his disposal to block all means of smuggling. The authorities are convinced that there must be one standard of values for all importers so that a level playing Qield could be ensured for all market participants. Still certain importers get their imported goods cleared at under-invoiced values avoiding the correct incident of duty and taxes, which puts them

at an advantage against the legitimate traders. The valuation guidelines being issued by the Directorate General of Customs Valuation are being implanted across the country so that underinvoicing could be eliminated across the board. Whereas, promotions and transfers are also overdue of customs ofQicers including Director Afghan Transit Surayya Ahmed Butt, Chief Management Faiz Ahmed, Chief Collector Enforcement South Zahid Khokhar, Director General Internal Audit Agha Jawad, Director General Customs Valuation Syed Tanveer Ahmed,

Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi

Member Tribunal Peshawar Mohammad Saleem, Director Customs Valuation Wasif Memon, Director Reforms & Automation Wajid Ali, Director ASO Feroz Alam Junejo, Director PCA Gul Rehman, Director I&I Samina Wajid, Director Training Zeba Bashir, Collector MCC Appraisement East Ahad Jawad, Collector Islamabad Dr. Arslan Sebuctageen, Collector Preventive Saifuddin Jenejo, Collector Exports (PQ) Mujtaba Memon, Collector Exports Yaqoob Mako, Collector Gawadar Saeed Jadoon, Collector Quetta Saeed Akram, and other ofQicers of the department.