Feb 20 layout 1

Daily on www.customsbulletin.com

Find us on

pAKiStAN’S fiRSt iNDeptH NewSpApeR oN cuStomS

Daily

Vol 1 Issue No. 298

Karachi, Sat February 20, 2016

KARACHI

S R KHAN

www.customsbulletin.com

T

he Federal Board of Revenue (FBR) is mulling over to transfer the charge and dealing of Statuary Regulatory Order-SRO 565 from Input Output Co-efPicient Organization (IOCO) to the Pield formation Collectorates, it is learnt here. Sources disclosed that the Director IOCO Shahnaz Maqbool was called by the FBR Chairman Nisar Mohammad and Member Customs Nasir Masroor Ahmed for taking briefing and presentation about the transferring of SRO from IOCO to Pield forma-

Price Rs. 14.00

tion Collectorates i.e. Appraisement (East), Appraisement (West) and Port Muhammad Bin Qasim. The Director IOCO Shahnaz Maqbool was arrived from FBR Headquarters, Islamabad after attending meetings with the Chairman FBR and Member Customs in connection with transferring the authority of SRO-565 from IOCO. It is pertinent to mention here that around 69 different items related to the concessionary regimes were included in the SRO-565.

Replying to a query, the sources informed Customs Today that the FBR authorities are also mulling over to include Duty Taxes Remission on Exports (DTRE) approval into the ambit of IOCO, adding that the IOCO authorities would likely to be allowed to give DTRE approval to the export consignments.

Faisalabad Intelligence impounds vehicles, auto parts worth Rs 5.5m

Hyderabad ASO confiscates diesel, bus worth Rs 2.3 million

NAB chief for expediting probes of ‘top cases’ without any fear

Customs earns Rs 25.12m through auction of seized goods, vehicles

South Korea to establish biggest advanced IT Park in Pakistan: envoy

Customs Intelligence registered four cases of smuggling and confiscated smuggled | See pAge 02 |

ASO seized 6,000 litres of diesel and a bus being used for the transportation | See pAge 03 |

TheNABhasdecidedtospeedupthe investigationprocessof‘topcorruptioncases’ | See pAge 04 |

The Customs Intelligence Multan Range office has generated Rs 25.12m | See pAge 12 |

Dr. Song Jong-Hwan, Ambassador of S Korea said that Korea would establish | See pAge 09 |

2

www.customsbulletin.com

IHC directs ATIR to decide tax issue of Air Blue Saturday, February 20, 2016

ISLAMABAD: Islamabad High Court on Thursday directed the Appellate Tribunal Inland Revenue (ATIR) to decide the tax matter of claiming recovery of Rs 658,105,680 from M/s Air Blue Limited.

IHC judge, Justice Aamer Farooq was hearing the reference who issued clear directions to the ATIR for rehearing the matter and producing a speaking order.

M/s Air Blue Limited had filed the petition. The appellant had prayed the court to grant it a stay on expected recovery of Rs 658,105,680 along with default charge of Rs 32,905,284 from appellant’s bank accounts.

National

faisalabad intelligence impounds vehicles, auto parts worth Rs 5.5m

pakistan customs asked to nominate officers for JiD by feb 20 KARACHI

AftAB cHANNA

FAISALABAD

NAeem SHeiKH

www.customsbulletin.com

www.customsbulletin.com

T

T

he Customs Intelligence and Investigation registered four cases of smuggling and conPiscated smuggled items worth Rs 5.58 million involving duty and taxes amounting to millions of rupees during Pirst two week of February, 2016.

The Customs Intelligence team following the directions of Additional Director Azmat Tahira conducted various anti-smuggling activities and impounded three vehicles and auto parts. The ofPicials impounded a Toyota Rava Jeep bearing Registration No. MC-844 worth Rs 2 million, a Toyota Vitz Registration No. APM-181 worth Rs 600,000, Toyota Corolla Registration No. ARB-687 worth Rs 1.5 million and auto parts worth Rs 1.48 million. As the accused persons could not show any evidence regarding the legal import of items, the customs seized the items under Section 156(1)89 and 90 ibid read with Section 3(1)(3) of the Import and Export Control Act 1969.

The Customs Intelligence team comprising Senior Intelligence OfPicer Zahid Saleem Mirza, Mian Muhammad Yousaf and Intelligence OfPicer Farzand Ali, Sepoys Tajamal Hussain and Muhammad Musadiq Ahmad participated in the raids.

he Federal Board of Revenue (FBR) has set February 20 as the deadline for Pakistan Customs to nominate three officials for the Joint Intelligence Directorate (JID) aimed at containing terrorism and allied activities. In this regard, the FBR has asked the collectors/directors to nominate three customs officers for establishing a JID envisioned under NACTA Act, 2013 and Section 47 of National Internal Security Policy (NISP 2014-18). The JID will serve as a coordination platform for information exchange between National Counter Terrorism Authority (NACTA) and Pakistan Customs with a view to achieve the common objective of countering terrorism and allied activities in the country. It will consist of 30 desks one of which will be headed by a BS-18 officer of Pakistan Customs, preferably having experience of serving in Directorate General Intelligence and Investigation, FBR, who will primary serve as conduit of information exchange between NACTA and Pakistan Customs. The FBR asked the Customs to nominate such officers of Pakistan Customs Service (PCS) BS-18 who are interested in the position and have relevant qualification and experience should be forwarded to FBR.

Meanwhile, Customs Intelligence and Investigation Faisalabad has seized a non-duty paid Toyota MarkX worth Rs 4 million.

Sources told Customs Today that Deputy Director Riaz Hussain received information that some nonduty paid vehicles are plying on roads. He immediately constituted a

customs team comprising Choudhry Saeed Hayat, Muhammad Saleem, Muhammad Ilyas Intelligence OfPicer (IO) and sepoys Masood Iqbal, Muhammad Shehbaz, Musadiq Ahmad, Muhammad Ashraf, Muzamil Hussain and Muhammad Anwar.

Customs team intercepted a Toyota Mark-X near Eden Valley 208

Chak Road and asked the owner of vehicle who was identiPied as Muhammad Tauseef Anwar son of Muhammad Latif Anwar to produce legal documents regarding possession of car but he failed to provide any relevant documents. Customs team seized the car and registered a case againt the owner.

indonesian envoy seeks close economic cooperation with pak

D

ISLAMABAD

m ARSHAD

www.customsbulletin.com

irector General International Trade Corporation of Indonesia Deny W. Kurnia has said that Pakistan and Indonesia have great potential to enhance bilateral trade and learn from each others experience. He says that there is a need to establish close economic cooperation between Indonesia and Pakistan.

In an exclusive interview with Customs Today on the sidelines of the second Trade Ministers Council and fourth meeting of the Supervisory Committee of D-8 group, Kurnia said that his country pins high hopes with the second Trade Ministers Council and fourth meeting of Supervisory Committee of D-8 group because the group’s commitment could change the fate of the people of eight developing nations.

“Once we achieve a mutual understanding for benePitting out of

each other’s expertise in relatively improved and developed sectors, we will not need to look forward to western countries in search of new potential markets for the consumption of our products” he observed.

Quoting the example of economic and trade fruits of EU, AFU, EEU and other regional economic blocs’ international cooperation, he said that once Pakistan would become able to have ample access to markets in far east countries, then Pakistan would not need to eye on American,

European and other continental markets for exports.

He said that Pakistan and Indonesia had not fully benePited out of potential of Free Trade Agreement (FTA) so far and major reason in this regard was the non trend of traders of both the countries. “Both countries’ exporters and importers are not very much familiar to each others’ products as well as sectors with specialization, this is why both sides have not reaped the fruits of the FTA, however, both countries

can make giant leap in this regard by arranging frequent exchanges of trade delegations” he added.

To a question he said that Pakistan should make elaborate arrangements to fully en-cash these emerging opportunities available in Indonesian markets. Indonesia has fully exploited FTA and successfully enhanced exports to Pakistan. However, Pakistan is still lagging behind despite the fact that it could also export more than 200 items to the Indonesian markets.

3

www.customsbulletin.com

ANF impounds 3kg heroin worth Rs 30m at Lahore airport LAHORE: The Anti-Narcotics Force (ANF) has seized three kilograms heroin worth Rs 30 million at Allama Iqbal International Airport Lahore.

Sources told Customs Today that the ANF team raided the airport and recovered three kilogram of high quality heroin which was hidden in a bag. The estimated value of the heroin is almost Rs 30 million. Sources said the bag filled with heroin is owned by a woman namely Arfa, who was travelling from Lahore to Saudi Arabia along with his son Waqar Ahmed. The accused has stated that the bag was given to her by an unknown person, who has said to hand over this bag to another person in Jeddah.

iHc directs AtiR to decide fate of case filed by wah industries

Saturday February 20, 2016

National

Hyderabad ASo confiscates diesel, bus worth Rs 2.3 million

ISLAMABAD

NAeem uLLAH tARiQ www.customsbulletin.com

slamabad High Court disposed of a case submitting plea to restrict FBR from recovering Rs 235,396,164 for the tax year 2013 from bank account of Wah Industries Limited. IHC also directed the Appellate Tribunal Inland Revenue (ATIR) to decide the fate of a case filed by Wah Industries Limited within 60 days. Wah Industries Limited’s petition was pending with the ATIR which carried a tax matter based on a LTU’s show cause notice, dated March 16, 2015, creating amount of Rs 235,396,164 for the tax year 2013.

IHC judge, Justice AamerFarooq heard the case and disposed it of with the directions to ATIR.

I

customs Appellate tribunal hears 16 cases on tuesday LAHORE

muHAmmAD NAwAZ www.customsbulletin.com

he Customs Appellate Tribunal heard 16 cases on February 18.

All cases were heard by the special bench-II comprising Judicial Member Omer Arshad Hakeem and Technical Member Omer Mehdi.

The bench heard the cases including Waseem Enterprises versus Lahore Customs collect, Mansoor Salahuddin versus Lahore Customs collector, Mansoor & Co. versus Lahore Customs collector, AS International versus Lahore Customs, Akhtar Nasir versus Lahore Customs, Al Barkat Traders versus Lahore Customs, Maria Enterprises versus Lahore Customs Appraisement collector, Arslan Shafiq versus Lahore Customs Preventive collector, Anyat & Co. versus Lahore Customs, Nasir Brothers versus Lahore Customs. Ramish International versus Lahore Customs.

T

HYDERABAD

ASLAm ANJum QuReSHi www.customsbulletin.com

T

he Customs Anti-Smuggling Organization (ASO) seized 6,000 litres of diesel and a bus being used for the transportation of the smuggled diesel. The valued of confiscated items is estimated at Rs 2.3 million.

Model Customs Collectorate Additional Director Omar Shafique following information regarding the smuggling made a team comprising Inspector Abdul Ghaffar Sheikh, Sepoys Muhammad Usman Jonejo, Muhammad Sadiq and driver Nisar Hamdani to foil the smuggling bid.

The team intercepted a bus bearing Registration No. QAE-5368 near Noriabad Super Highway and found a hidden tank carrying Iranian diesel during checking. The officials asked the driver to produce documents showing legal import of the vehicle but he remained fail; therefore, the ASO team impounding the 6,000 litres of diesel valued at Rs 360,000 involving duty/taxes to the tune of Rs 176,400 and bus under the prevailing customs laws. During the raid, three accused persons named Dar Muhammad, Shahzad and Abdul Fateh were arrested, while FIR against them has been lodged for further investigation.

Meanwhile, The Customs AntiSmuggling Organization (ASO) dur-

ing an action has seized smuggled cigarettes and gutka worth Rs 5.41 million involving duty/taxes amounting to Rs 2.48 million.

Sources told Customs Today that the ASO team conducted a in the city and confiscated 330 packs of foreign origin cigarettes worth Rs 132,000 involving duty/taxes to the tune of Rs 45,804 and 278 bags of Indian origin gutka worth Rs 5.28 million involving duty/taxes of Rs 2.44 million.

ASo team impounding the 6,000 litres of diesel valued at Rs 360,000 involving duty/taxes to the tune of Rs 176,400 and bus under the prevailing customs laws. During the raid, three accused persons named Dar muhammad, Shahzad and Abdul fateh were arrested, while fiR against them has been lodged for further investigation

collector Agha calls meeting to review performance KARACHI

T

S R KHAN

www.customsbulletin.com

he Collector Customs Collectorate Appraisement (West) Dr Owais Agha Jawwad has called a meeting of the ofPicers in order to review the Collectorate’s performance. Sources informed Customs Today that the additional collectors, deputy collectors and assistant collectors had attended the

meeting at the ofPice of the Collector.

During the meeting, the Collector Appraisement (West) emphasized for achieving the revenue targets by the end of the third quarters of the current Piscal year. The Collector Appraisement (West) also stressed upon to take effective actions against the mis-declaration, tax evasion and under-invocing and also directed the authorities concerned to take up the court cases which are in pending in different courts. The Collector Dr Owais Agha Jawwad also asked the

authorities concerned to ensure recovery of stranded national exchequer so that the revenue generation could be enhanced. The sources further informed that the Collector Appraisement (West) also directed the ofPicers of the Collectorate that the genuine grievances of the importers would be resolved within 24-hours adding that the strict action would be taken against unscrupulous elements who damaging the national exchequer through mal-practicing and other unfair means.

Under the supervision of Additional Collector Omar Shafique, the ASO team comprising Deputy Superintendent Anwar Ahmed Siddiqui, Inspector Waqar Ahmed Baig, Inspector Syed Nazim Ali, Sepoy Muhammad Aslam and others participated in the raid.

After making the seizure report, the ASO team deposited the confiscated smuggled items cigarette and gutka to Hyderabad State Warehouse.

Rto-i starts audit of non-profit organisations he Regional Tax Office-I (RTO-I) of the Federal Board of Revenue (FBR) has started audit of three non-profit organizations, it is learnt.

According to the details, the RTO-I is conducting audit of M/s Hashmat Majeed Mian Trust, Advance Healthcare Trust and Zaibun Nisa Hospital which are functioning as non-profit organizations.

T

4

www.customsbulletin.com

SBP’s reserves up by $174m to $15.5b KARACHI: The State Bank of Pakistan’s (SBP) total foreign exchange reserves surged by 1.1% or $174 million to $15,515 million on week ended February 12 as compared to $15,341 million in the previous week. According to data released by the central bank, the country’s liquid foreign reserves stood at $20,387.9 million while net reserves held by banks amounted to $4,873.1 million. Last month, foreign exchange reserves held by the SBP increased 3.5% on a weekly basis after it received $500 million from the IMF. The SBP received $918 million in November from multilateral, bilateral and other official sources, which include $500 million from World Bank and $400 million from ADB.

Saturday, February 20, 2016

Business

pSX sheds 208pts to close at 31074 level KARACHI

cuStomS BuLLetiN RepoRt www.customsbulletin.com

T

he Pakistan Stock Exchange (PSX) Friday remained in negative zone and dropped 207.96 points to reach 31074.48 points level at closing.

The stocks recorded the highest trading level of 31295.00 points and lowest level of 30946.36 points, with the volume of 109.51 million shares, having about Rs5.81 billion value. As many as302 companies were active; of which 90 advanced, 199 declined and 13 remained unchanged.

wB country director calls on ishaq Dar

Commercial banks was the top traded sector with 24,435,600 volume, while technology & communication remained second with 16,607,000 volume.

pakistan offers immense opportunities for Australians in mining, other sectors

ISLAMABAD

cuStomS BuLLetiN RepoRt www.customsbulletin.com

ISLAMABAD

S

cuStomS BuLLetiN RepoRt www.customsbulletin.com

he World Bank Country Director, Patchamuthu Illangovan called on Finance Minister, Ishaq Dar here. Illangovan expressed his gratitude for the warm welcome and hospitality extended to the World Bank President and said Dr. Jim Yong Kim was highly impressed by the progress made by Pakistan in terms of economic development during the last two years.

T

The three top traded companies were TRG Pak Ltd with a volume of 9,648,000 and price per share of 24.73 (-1.30), Pak Elektron (R) with a volume 5,317,000 of price per

share of 17.12 (-1.00), and National Bank with a volume 4,615,000 of price per share of 57.51 (57.51).

The top three gainers were Philip Morris Pak with price per share 1774.50 (84.50), Siemens Pak. XD with price per share of 868.98 (31.10) and Sapphire Fibre price per share of 648.50 (23.50). The top three losers were SanoPi-Aventis with price per share of 553.51 (-28.61), Highnoon (Lab) with price per share of 441.03 (22.91) and Khyber Tobacco per share of 349.60 (-18.40). Earlier, the bearish trend opened another trading day as the PSX shed 258.74 points to reach 31023.70 points level in early trading. Despite gaining some early losses, the PSX remained in negative zone dropping 131.62 points to reach 31150.82 points level till midday.

peaker National Assembly Sardar Ayaz Sadiq said that Pakistan and Australia enjoyed cordial relations based on common interest and shared perceptions on major international issues.

He was talking to the Australian High Commissioner to Pakistan Margaret Adamson who called on him here. The Speaker said that Pakistan strongly desired to further diversify

its existing relations through peopleto-people contacts and parliamentary cooperation between National Assembly and Australian Parliament. He thanked the Australian government for consistent increase in number of scholarships awarded to Pakistani students. He urged for cooperation in institutional strengthening and democratic governance in Pakistan and added that Pakistan aspired to benePit from Australian Parliamentary practices regarding the training opportunities in legislative drafting and Research and in committee system speciPically the Public Accounts Com-

mittee in its exercising oversight functions. He informed Margaret Adamson that Pakistan was an exciting market for renewable energy production and processed foods. He remarked that Pakistan offered immense opportunities for Australians in mining, agricultural and livestock expertise.

Margaret congratulated Speaker NA on successfully launching the Pirst ever Solar Panel Power Project in any Parliament in the world and also congratulated for making the parliament Pirst in the world to establish an exclusive Secretariat for Sustainable Development Goals.

NAB chief for expediting probes of ‘top cases’ without any fear LAHORE

cuStomS BuLLetiN RepoRt www.customsbulletin.com

he National Accountability Bureau (NAB) has decided to speed up the investigation process of ‘top corruption cases’ within 10 days without any fear NAB Chairman Qamar Zaman Chaudhry has sought details of important cases from all the regions and directed the completion of the investigation process within 10 days. The NAB had said the non-interference policy of the government helped the bureau become an independent organisation and it respected the prime minister’s opinion. In reaction to the comments passed by the prime minister about NAB’s working, it said the organisation inherited some problems and it was speedily taking necessary steps to resolve them.

The process of accountability would be further improved in the light of the prime minister’s recommendations.

In a press release, the spokesperson had said it was determined to eliminate corruption from the society. In a press release, the spokesperson had said it was determined to eliminate corruption from the society.

T

pakistan becoming safe haven for foreign investors ISLAMABAD

D

cuStomS BuLLetiN RepoRt www.customsbulletin.com

-8 conference held in Islamabad has sent a soft and positive message to the world that Pakistan is a peaceful country and becoming a safe haven for the foreign investors and Pakistan has great trade potential which is needed to be explored.

This was stated by experts while

talking in Radio Pakistan’s News and Current Affairs’ program. Former Ambassador B.A. Malik said to enhance the trade volume up to USD 500 billion would be a great achievement. Pakistan had successfully been Pighting a war against terrorism and peace was restored in the country, he said adding that due to which, foreign investors were taking keen interest to invest in development projects in Pakistan.

Former Ambassador Mushtaq

Ahmed Mehr was of the opinion; Constitution of D-8 was a brilliant idea of Muslim countries as it would improve the trade volume and relation among the member countries of this organization.

“Gulf countries can also play a vital role to improve the economy of our country through investment in development projects in Pakistan.” he remarked. Pakistan was playing a vital role to defuse the Iran-Saudia tension; If it succeeds, then it would

benePit all the countries of the region in promoting trade, he maintained. Former Finance Minister, Dr. Ashfaq Hassan Khan said,”A group of developing Islamic countries has agreed to boost their trade volume from the existing 120.5 billion U.S. dollars to 500 billion U.S. dollars by the end of 2018 which needs all out efforts to be made possible.” “Almost 52% of the regional trade is going on among these countries. Trade ministers from the D-8, grouping

eight Islamic countries agreed to operationalise their Preferential Trade Agreement (PTA) from 1st July this year,” he said. Economist Dr. Shahid Hassan Siddiqui making a mention of IMF’s appreciation for the economic policies of the present government as well as visit of Trade Ministers of D-8 to Pakistan and also that of President of World Bank, said all that was rePlective of the fact that Pakistan was becoming a safe haven for the foreign investors.

www.customsbulletin.com

ADVERTISEMENT

5

6

www.customsbulletin.com

www.customsbulletin.com

LAHORE m HAYAt www.customsbulletin.com

p

rime Minister’s Special Assistant on Revenue Haroon Akhtar Khan has urged the traders that now it is high time for traders to opt for the Voluntary Tax Compliance Scheme and play their role for growth and development of country.

“After this scheme is over, the withholding tax on banking transactions will again be 0.6 percent.

Law will come in to action, notices will be served on the non-Pilers after receiving information of levy of 0.6 percent tax on banking transactions and those non-Pilers will be subjected to 35 percent tax and penalties. While if any such account proved ‘Benami’, its amount will be conPiscated and a law in this regard will be introduced before next budget,” Haroon Akhtar Khan said while addressing a gathering of ofPice-bearers and members of Lahore Tax Bar Association, Lahore Chamber of Commerce and Industry (LCCI) and Pakistan Anjuman e Tajran Lahore.

The event was organized by the Regional Tax OfPice (RTO) Lahore of the Federal Board of Revenue (FBR) and was addressed among others by Anjuman-e-Tajran Lahore President Naeem Mir, LCCI Vice President Nasir Saeed, Muhammad Ali Mian, MNA Pervez Malik, Tax Bar Association President Mansha Sukhera, Ch Qamar-Uz-Zaman and others. Haroon Akhtar said that with the introduction of this scheme was aimed at facilitating the traders, especially those who are of small

7

Saturday, February 20, 2016

scale. “Now they have two options either opt for it or get ready for the law to take its course against them after the time is over,” he added.

He said that it is an historic moment that members of the FBR and representatives of the traders and tax bar were present at one place hailing the scheme but ball is now in the court of traders that they should act and join the tax net to play

their role for the betterment of the country.

Besides 0.6 per cent of withholding tax and penalties the non-Pilers have to face sales tax and deposit wealth statements too. While the second and easy option is that they should declare capital up to Rs 50 million, pay minimum tax and enjoy the facility of exemption of audit, registration in sales tax and Piling a simple one page income tax return. Haroon said that he was very frankly speaking to the traders of Lahore as it was his city and criticized the opposition for creating misunderstandings about this scheme. He said that he

was undertaking tour of whole of the country and campaigning in favour of this scheme so as traders could take advantage of it as after it they have to face the hardships of the normal taxation regime.

Meanwhile, Special Adivisor to Prime Minister on Revenue Haroon Akhtar has said that traders should avail the benePits of Voluntarily Tax Compliance Scheme (VTCS) until February 29. Speaking during a seminar, he warned that those who will not take benePits of VTCS and fail to Pile their tax returns will have to pay 0.6 percent withholding tax on banking transactions.

He said that this scheme provides golden opportunity to all non-Pilers to become Pilers.

le d whi i a s n Kha g of khtar A n herin o t a o r g a a s of H mber ssing e e r m d d d a n, s an ciatio earer o b s s e A c rce offi Bar omme e tax r c o f h o a r L be and cham e r o (Lcci) h y r La t s du ajran and in njuman e t tan A ore pakis Lah

8

www.customsbulletin.com

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

Business with iran

t

here is a huge potential of bilateral trade between Pakistan and Iran as both the countries not only share common history, religion and geography, but also economy and business interests. Iran has endured years of sanctions from the United States and European nations, but now it is ready to join the international community and is opening up a host of trade and investment opportunities for foreign investors. During the years of isolation, illegal trade between the two countries multiplied, but Pakistan had failed to grab the Iranian consumer market through legal channels. However, it is still not too late and Pakistani business community has the opportunity to enter the Iranian market before India takes advantage of the situation. Iran has developed textile industry, whereas Pakistan has made good progress in auto industry and both the countries can benefit from each other’s experience. Pakistan should prefer Iran over the distant countries in export of agricultural products.

The much-hyped Pakistan-Iran gas pipeline project is still in doldrums and there is no word from the government on the issue. The government has recently signed LNG import agreement with Qatar and it should also now give some considerations to start work on the gas pipeline as billions of dollars have already been invested in the project. Pakistan’s exports are dwindling and the industry is confronting severe energy crisis. It is hoped that both the issues will be resolved if gas pipeline project is completed and Pakistan ensures its presence in the Iranian auto market. The Iranian gas will give a new lease of life to the ailing industry of Pakistan while the project will also ensure flow of cash from Pakistan to Iran. The project was unveiled in Islamabad in 2008 and China was also ready to join it. Iran is also ready to supply 4,000 megawatt electricity and plans to build an oil refinery in Gwadar. A close trade and business cooperation is in the interest of both the countries, but there is a need to move forward with sincerity. There is also need to develop close liaison between central banks of both the countries. In the meantime, Pakistan will have to maintain cautious approach toward Iran in view of the geopolitical situation in the region as India will never allow Pakistan and Iran to maintain close business cooperation.

$50 billion debt bill A

LAHORE

DR AftAB AfZAL

www.customstoday.com

ccording to a report released by Bloomberg, about 42 percent of Pakistan’s outstanding debt is due to mature in 2016. The volume of the debt in dollar terms is roughly $50 billion and this amount is equivalent to the size of Slovenia’s economy. Experts fear the country could default on its debt as the credit default swaps have surged 56 basis points last week. The new government, after assuming the power in 2013, approached the International Monetary Fund for an extended facility programme and won a loan amounting to $6.6 billion to help avert an external

payments crisis. The fund projected the economy of the country to grow at 4.5 percent, which is an eight-year high after the Pakistan Army launched a crackdown on militants in tribal areas, Karachi, Peshawar and elsewhere bringing peace and stability to some extent across the country. The report says that the country’s high level of public debt, with a large portion Pinanced through short-term instruments, does make the sovereign’s ability to meet the Pinancing needs more sensitive to market conditions.

The report says that since Prime Minister Nawaz Sharif ’s government took the loan, the country’s debt due by end-2016 has jumped about 79 percent and is facing resistance in meeting the

IMF demands to privatize stateowned organizations, including the national carrier Pakistan International Airlines. This year’s debt amounting to $30 billion is due between July and September, and repayments will get tougher if borrowing cost further rises. In case the debt servicing cost rises, the government will have little options to maneuver. An amount of about $124 billion or 77 percent of the country’s budget for the year through June 30 has been earmarked for interest and principal repayment on loans.

However, experts also believe that the situation will not create panic in Pinancial circles of the country as the external liabilities are relatively modest, foreign-currency reserves have increased and

the fund is willing to help meet maturing the loans. The China Pakistan Economic Corridor has created conducive environment for the foreign investors while low budget dePicit will help increase investor conPidence in the country’s economic policies. According to the report, Pakistan has the 10th highest political risk score among more than 120 countries,even worse than Egypt and Iran. As a matter of fact, the government will have to overhaul the current Pinancial system to put the economy on the right track. The countries liabilities are increasing day by day without the support of a strong industrial base. It is hoped that commonsense will prevail and the government will Pind a way out to keep minimum reliance on foreign loans.

9

www.customsbulletin.com

New Zealand exports of fruit, vegetables raise in 2015 WELLINGTON: The New Zealand export of fresh fruit and vegetables has grown considerably in 2015 compared to the previous year. This is shown in figures from Fruit and Vegetables Facts. In total New Zealand was able to sell 1.27 million tonnes of fresh fruits and vegetables abroad in the last year. This was a record with an increase of 18%.

“New Zealand is clearly looking for other sales markets,” according to Jan kees Boon’s findings. “The main growth markets are in Asia, such as China, Thailand and the United Arab Emirates and India.” The export of New Zealand leans very heavily on kiwis. In value the share of kiwis is 56% and in amount over 40%. The export of kiwis in 2015 was an all time high record.

Apples are the other large product, with a share (in amount) of slightly less than 30%.

Lcci can play vital role in normalisation of pak-india ties through trade oad to normalization of PakIndia relations is only through trade and the Lahore Chamber of Commerce and Industry can play a vital role in this regard.

This was stated by the Indian High Commissioner Gautam Bambewale while talking to the LCCI Senior Vice President Almas Hyder at the Lahore Chamber of Commerce and Industry.

Former LCCI presidents Mian Muhammad Ashraf, Tariq Hameed, Mian Anjum Nisar and Muhammad Ali Mian were also present on the occasion. Indian High Commissioner

R

said that there is no better way of improving bilateral relations than mutually beneficial economic ties.

He informed the participants that Federation of Indian Chambers of commerce and Industry (FICCI) intends to organize a Trade Show in collaboration with Trade Development Authority of Pakistan (TDAP) at Expo Center Lahore. He said that the Lahore Chamber of Commerce and Industry should be an active part of this mega event.

Indian High Commissioner said that the Indian government has recently commenced multiple visas for three years exclusively for businessmen.

This includes visit of 15 Indian cities exempted for police reporting. Moreover, the businessmen can travel to India by road and return via air.

The LCCI Senior Vice President Almas Hyder said that traders of the both countries are facing various issues which are hampering the trade and economic activities between the two countries. He said, he believes that bilateral trade would get a considerable boost in coming years.—CB Report

Saturday February 20, 2016

Chambers

South Korea to establish biggest advanced it park in pakistan: envoy D

ISLAMABAD

cuStomS BuLLetiN RepoRt www.customsbulletin.com

r. Song Jong-Hwan, Ambassador of South Korea said that Korea would establish one of the biggest and most advanced IT Park in Islamabad at an area of about 1 million square feet to promote SMEs as the facility would provide SMEs and start-ups in IT industry with office spaces equipped with advanced IT infrastructure and security facilities. He said the IT Park would be set up in collaboration with Ministry of IT of Pakistan and it would provide most advanced business facilities to IT companies in Pakistan. He said this during an interaction with business community at Islamabad Chamber of Commerce and Industry. He was accompanied by Park Bongsu, Commercial Counsellor andJo Eunsang, Economic Officer, Embassy of South Korea.

The Korean Ambassador said that bilateral trade between Pakistan and Korea had declined by almost 34 percent during the last three years which should be a cause of serious concern for both sides.

He termed non-availability of trade related information and lack of understanding about promising areas of cooperation as major reasons of low trade volume. However, he said that Pakistan and Korea have started the process of free trade agreement feasibility study of which would be completed by end of June this year and added that both sides were expecting big jump in bilateral trade once the FTA was signed.

He said Korea was cooperating with Pakistan in energy sector and added that Korean Importers Association (KOIMA) was looking for partners to import thousands of tons per month good quality cop-

per ore from Pakistan. He said that tremendous untapped possibilities of mutual cooperation existed between Pakistan and Korea and assured that his Embassy would provide all possible cooperation to exploit such opportunities.

In his welcome address, Atif Ikram Sheikh, President, Islamabad Chamber of Commerce and Industry said that Korea has placed some stringent Sanitary and Phyto Sanitary (SPS) measures due to which many Pakistani agricultural products were facing difPiculties in getting better access to Korean market and stressed that such measures should be revised.

media should highlight key issues of trade

I

ISLAMABAD

cuStomS BuLLetiN RepoRt www.customsbulletin.com

slamabad Chamber of Commerce and Industry hosted a reception in honor of the new office bearers of National Press Club, Islamabad. Shakeel Anjum President, Naveed Akbar Senior Vice President, Nazia Touheed, Ibrahim Kumbhar and Asif Bhatti Vice Presidents, Imran Yaqoob Dhilon Secretary, Amannullah, Iqbal Malik, Mohsin Ijaz and Shakila Jilil Joint Secretaries, Ishaq Chaudhry Finance Secretary and members of governing body were present at the occasion.

In his opening remarks, Atif Ikram Sheikh, President, Islamabad Chamber of Commerce and Industry welcomed the office bearers and governing body members of National Press Club, Islam-

abad to ICCI. He said business and journalistic communities were important stakeholders in the development of local economy and both organizations should consider forming a joint committee to work jointly for serving the cause of their members more effectively.

He said journalistic community should cooperate with business community in highlighting key issues of trade and industry so that government could pay better attention towards resolving their problems. He said new local government was elected in Islamabad and strong working relationship between business and journalistic communities was important to influence local government for focusing non better development of the federal capital. He assured that ICCI would continue to cooperate with the National Press Club, Islamabad for promoting larger in-

terests of the economy.

Speaking at the occasion, Shakeel Anjum, President, National Press Club, Islamabad (NPCI) said it was encouraging that ICCI and NPCI enjoyed cordial relations since long as their friendly relations were yielding beneficial outcomes for their members and the economy. He assured that NPCI platform would always be available to highlight the issues of business community. He hoped that close cooperation between the two bodies would be helpful in addressing issues and facilitating the growth of business activities. Shehyar Khan, Farah Naz, Imran Yaqoob Dhilon, Ishaq Chaudhry and others also spoke at the occasion and stressed for further strengthening the relations between ICCI and NPCI for achieving healthy results for the citizens and local economy.

He said being an advanced economy, Korea should help Pakistan in modernizing its economy through technology transfer, knowledge sharing, capacity building, enhanced trade, investment and joint ventures. He said China-Pakistan Economic Corridor would create plenty of opportunities for investment and joint ventures and Pakistan and time was ripe for Korean investors to take more interest in Pakistan for investment. He said both countries should encourage frequent exchange of trade delegations and organize single country exhibitions on reciprocal basis in order to explore new avenues of mutual cooperation.

Azerbaijan’s oil exports fall 5% in Jan zerbaijan’s oil exports fell 5 percent in January to 2.7 million tonnes compared with the same period last year, the state customs committee said on Wednesday. There were no exports of oil via Russia through the Baku-Novorossiisk pipeline last month, while the country exported 84,912 tonnes of oil through the pipeline in January last year. Exports through the Baku-Supsa pipeline via Georgia rose to 376,853 tonnes from 375,641 tonnes, while exports through Baku-Tbilisi-Ceyhan via Georgia and Turkey were 2.28 million tonnes, the same as in January 2015. Oil exports shipped by rail via Georgia fell to 59,848 tonnes from 118,088 tonnes. Crude oil and condensate production in Azerbaijan declined by 2.8 percent year-on-year to 3.5 million tonnes in January 2016. —CB Report

A

10

www.customsbulletin.com

National Gas terminates chief executive officer Saturday February 20, 2016

World

MUSCAT: National Gas Company said that the company’s board has decided to terminate the services of its chief executive officer Goutam Sen. He was under suspension from February 2014.

“Further to the disclosure made by the company on February 11, 2014 with respect to the suspension of the chief executive officer, Goutam Sen, the company wishes to inform the shareholders that in the board of directors meeting held on February 15, 2016, it has been decided to terminate the services of Goutam Sen with immediate effect,” the company said in a stock market filing.

The company disclosed in February 2014 that its chief executive had been detained over suspected bribes paid to a government official.

uS customs seizes narcotics worth $274,062 BROWNSVILLE

cuStomS BuLLetiN RepoRt www.customsbulletin.com

U

S Customs and Border Protection ofPicers at the Brownsville Port of Entry intercepted three loads of alleged narcotics over the weekend. CBP ofPicers discovered the alleged drugs, which carried a combined street value of approximately $274,062, hidden within the three vehicles.

“Every load of narcotics that we intercept at our ports of entry helps to keep our streets safer,” said Port Director Petra Horne, Brownsville Port of Entry.

“I congratulate our ofPicers for their dedication which has prevented these dangerous narcotics from entering our country.”

Packages containing 20 pounds of cocaine seized by CBP ofPicers at Brownsville Port of Entry The Pirst seizure took place on

oil price slump blamed for customs missing January target he persistent drop in oil continued to take its toll on the revenue collections of the Bureau of Customs, which missed its target in the first month of the year.

The agency, which traditionally accounts for a fifth of state revenues, reported on Wednesday that it raised P30.9 billion in January, 21.1 percent below its P39.2-billion goal for the month. Nonetheless, Customs said its total haul improved 5.2 percent from P29.4 billion in the same period a year ago. “The collection effort of the BOC is adversely affected by the 41.2-percent drop in the weighted average price of crude and petro products,” Customs said in a statement on Wednesday. Global oil prices continued their tumble after dropping by double digits last year.—CB Report

T

Friday, Feb. 12, at the Gateway International Bridge when a 20-yearold male United States citizen who resides in Weslaco, Texas, applied for entry into the United States through the pedestrian lane and was referred to CBP secondary for further examination. During the examination, CBP ofPicers discovered four packages hidden under the man’s clothing. CBP ofPicers removed the packages, which contained a total of 2.23 pounds of alleged methamphetamine with an estimated street value of $44,533.

The second seizure also occurred on Friday, Feb. 12, at the Brownsville and Matamoros International Bridge, when CBP ofPicers working primary encountered a man as he arrived at the port of entry as the driver of a beige 2003 Ford F-150 pick-up. The man, identiPied as a 23-year-old Mexican citizen who resides in Matamoros, Mexico, was referred to CBP secondary for further examination after a primary inspection.

Hong Kong customs seized suspected cocaine worth $1.6m HONG KONG

cuStomS BuLLetiN RepoRt www.customsbulletin.com

H

ong Kong Customs detected a suspected drug trafPicking case at Hong Kong International Airport yesterday and arrested an incoming female passenger and seized about 1.5 kilograms of suspected cocaine, with a market value of about $1.6 million. The arrested female arrived at Hong Kong from Sao Paulo, Brazil via Dubai, United Arab Emirates yesterday. During Customs clearance, Customs ofPicers found Pive cans of luncheon meat inside her luggage.

In-depth examination led to the discovery of 1.5kg of suspected cocaine. The arrested female, aged 25 and claimed to be a businesswoman, will be charged with one count of trafPicking in a dangerous drug.

She will appear at Tsuen Wan

Kuwait customs foils attempt to smuggle hashish, captagon

A

bdaly custom ofPicers foiled two smuggling attempts of hashish and Captagon to the country. A customs source said the Pirst operation included an attempt to smuggle two kilograms of hashish, while the second included an attempt to smuggle 25,944 Captagon tablets, which were caught with a Syrian truck driver coming from Iraq. Meanwhile, The Criminal Court of First Instance chaired by Judge Mut’eb Al-Ardhi sentenced the main suspect in a drug trafPicking case to life imprisonment and

acquitted Pive others in a lawsuit with the state. According to the case Pile, the Public Prosecution accused the Pirst four defendants of trafPicking in cocaine without legal authorization.

Apparently, the Pirst and second defendants are ex-convicts alleged to have concealed the item inside their luggage on arrival to the country without paying customs duty. The Pifth and sixth defendants were accused of peddling in illicit drug for the same purpose, noting the sixth defendant was also an ex-convict.—CB Report

Magistrates’ Court tomorrow.

Under the Dangerous Drugs Ordinance, trafPicking in a dangerous drug is a serious offence. The maximum penalty is life imprisonment and a Pine of $5 million.

Meanwhile, Nearly HK$10 million-worth of illegal drugs have been

T

seized in a Lunar New Year crackdown by Hong Kong customs ofPicials. Cocaine, cannabis and ketamine were among the narcotics discovered between February 5 and February 7 as more than 850,000 people poured into the city for the Lunar New Year holiday.

top oil exporters to freeze output op oil exporters Russia and Saudi Arabia agreed yesterday to freeze output levels but said the deal was contingent on other producers joining in a major sticking point with Iran absent from the talks and determined to raise production.

The Saudi, Russian, Qatari and Venezuelan oil ministers announced the proposal after a previously undisclosed meeting in Doha. It could become the first joint OPEC and non-OPEC deal in 15 years, aimed at tackling a growing oversupply of crude and helping prices recover from their low-

est in over a decade.

Saudi Oil Minister Ali al-Naimi said freezing production at January levels near record highs was an adequate measure and he hoped other producers would adopt the plan. Venezuelan Oil Minister Eulogio Del Pino said more talks would take place with Iran and Iraq today in Tehran.

“The reason we agreed to a potential freeze of production is simple: it is the beginning of a process which we will assess in the next few months and decide if we need other steps to stabilize and improve the market,” Naimi said.—CB Report

customs duty rises on sale of power from SeZ

T

NEW DELHI

cuStomS BuLLetiN RepoRt www.customsbulletin.com

he government on Wednesday raised the customs duty on sale of power from plants located in special economic zones (SEZs) to the rest of the country in order to give a level playing Pield to power producers located outside these export hubs. The

move is likely to impact the cost competitiveness of power sales from Adani Power Ltd’s Mundra SEZ and Essar Power’s SEZ in Hazira, which would affect the cost of power purchase by state utilities in Gujarat. Units in SEZs, which are set up with the purpose of increasing the country’s exports and earning foreign exchange, are allowed to import raw materials and equipment duty free and are eligible for in-

come tax relief for 15 years. These benePits give these units a cost advantage if they sell their output in the domestic market. The government’s idea is to reduce this cost advantage, which power producers outside these tax free enclaves consider unfair. Wednesday’s notiPication issued by the Central Board of Excise and Customs (CBEC) raised the customs duty on sale of power from plants in SEZs which use

cheaper imported coal from 10 paise per kilowatt hour (kwh) to 40 paise, and imposed afresh a 65 paise duty on power sale by those using domestic coal. “The government’s intent seems to be to give a level playing Pield between power producers within SEZs, who can import inputs and equipment duty-free, and those generation units outside these zones,” said Kalpana Jain, senior director at Deloitte in India.

11

www.customsbulletin.com

Silicon wafer shipments rise 3% in 2015 WASHINGTON: SEMI has reported that worldwide silicon wafer area shipments increased 3% to a record high of 10.434 billion square inches in 2015. Despite the record shipments, silicon wafer revenues decreased 6% in 2015 compared to 2014, according to SEMI. Revenues totaled US$7.2 billion, down from US$7.6 billion posted in 2014. “Semiconductor silicon shipment levels remained strong throughout most of the year, resulting in record volume shipments,” said Volker Braetsch, chairman of SEMI SMG and senior VP of Siltronic.

“The strength in shipments was not enough to compensate headwinds from further price decline and some exchange rate impact; silicon revenues for the year decreased yet again and are significantly below their market high set in 2007.”

poland plans shipbuilding drive oland’s development ministry is planning a shipbuilding programme designed to strengthen domestic industry, the Puls Biznesu daily has reported. The main aim of the Batory programme is to build passenger ferries in Polish Baltic Sea docks. The development ministry also wants Poland to focus on producing gas tankers.

“Thanks to the measures proposed by the Ministry of Development, Polish ship owners will perhaps stop ordering units in China or Korea, and place orders with Polish shipyards,” said Ewa Kruchelska, head of shipbuilding and offshore construction firm Crist, which is based in the northern port of Gdynia.

P

Sabah port obtains major capacity boost

Saturday February 20, 2016

china ships record 117.3m smart phones in Q4 of 2015 hina has shipped a record 117.3 million smartphones in the fourth quarter of 2015, with sales fuelled in part by the country’s annual online Singles Day shopping festival in November. The quarter’s shipment was up 8 percent from fourth-quarter 2014, according to the latest figures from research firm IDC, pushing last year’s overall smartphone shipment growth to 3 percent over 2014. It added that the country’s market growth also was driven by strong sales from local smartphone manufacturer, Huawei. Apart from its strong shipment growth, the quarter saw a change of vendors that led the top three spots in the China market. Tay Xiaohan, IDC’s Asia-Pacific senior market analyst for client devices, noted: “Xiaomi, Huawei, and Apple are the top smartphone players in 2015. This is a stark contrast to the top players in 2013, which was Samsung, Lenovo, and Coolpad–with Samsung clearly dominating other players. “With operators reducing smartphone subsidy and given the volatility of consumers’ brand preference in the market, the smartphone scene has changed significantly since then,”Tay said. She explained that Xiaomi’s foray came at a time when China’s smartphone market was still growing, enabling the local device maker to capture significant market share with its sales model. —CB Report

C

PETALING JAYA

cuStomS BuLLetiN RepoRt www.customsbulletin.com

The Polish government on Tuesday adopted an ambitious plan, announced by Development Minister Mateusz Morawiecki, to inject some PLN 1 trillion into the economy over the next 25 years.

Meanwhile, The Liquefied Natural Gas terminal in the Baltic port of Świnoujście, northern Poland, was on Monday receiving its second shipment of fuel from Qatar.

The Al Nuaman tanker was carrying 210,000 cubic meters of LNG. Unloading the fuel, needed to get the terminal up and running, is expected to take four days. Commercial deliveries to Świnoujście are expected to begin in the second half of 2016. The Polish terminal received its first shipment of fuel from Qatar on 11 December. The PLN 3 billion Baltic facility was built to allow Poland to diversify its gas supplies and reduce its dependence on Russia.—CB Report

Ports & Shipping

S

apangar Bay Container Port (SBCP), which handles most of the container throughput of Sabah, will more than double its handling capacity under the initial phase of an expansion programme.

Suria Capital Holdings Bhd, whose unit Sabah Ports Sdn Bhd has been made the implementing agency for the programme, told Bursa Malaysia that construction work for the Pirst

stage would start early next year and be completed by 2019. The operation area would be expanded to boost the container handling capacity to as much as 1.25 million TEUs (20ft equivalent units) from the current 500,000 TEUs, it said. This involves expanding its berth length from the current 500m to 1.2km and stacking area from 15ha to 60ha.

“Currently, Sapangar Bay Container Port handles an average of 300,000 TEUs a year, 70% of the total container throughput of Sabah. “The growth has been on the uptrend at about 5% to 6% annually since the privatisation exercise,” Suria Capital

said. For the SBCP expansion programme, the Government has allocated RM800mil under the 11th Malaysia Plan. Funding under the Pirst rolling plan would be staggered over two years (2016-2017), said Suria Capital. Under the arrangement, RM7mil is to be used within the Pirst year of implementation and RM365mil in 2017. Suria Capital noted that Deputy Chief Minister Tan Sri Joseph Pairin Kitingan, during his visit to port on Monday, had announced that a masterplan would be prepared this year to upgrade and expand the port’s infrastructure to allow main line operators.

Dp world to invest over $1b in indian ports

G

NEW DELHI

cuStomS BuLLetiN RepoRt www.customsbulletin.com

lobal trade enabler DP World has announced that it seeks opportunities in India worth over $1 billion over the next few years. The Group has already invested capital of $1.2 billion and is currently the only foreign operator with six port concessions in the country with approximately 30 percent market share. The investments could cover: expansion in brown-

Pield container terminals, long term greenPield container concessions, Inland Container Depots (ICDs) and expansion of existing inter-modal rail services for rolling stock.

Sheikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and deputy supreme commander of the Armed Forces of the United Arab Emirates (UAE), said, “The UAE and India enjoy historic bilateral relations and these potential investments reinforce our confidence in the long term growth of the Indian economy and our de-

sire to actively contribute to the economic development of this friendly nation.

DP World has established a leading position in the Indian market and is a pioneer in the development of container terminals. It has the biggest portfolio along the Indian coast and is looking to enhance its presence there, transferring the UAE’s experience of infrastructure development in line with our plans to enhance the strategic relations between our countries and to take them to a higher level.”

Dubai’s non-oil foreign trade with India has seen a striking 144 percent growth from 2004 to 2014.

By the end of 2014, trade between the two countries amounted to AED 109.34 billion, compared to AED 44.87 billion in 2004.

India was Dubai’s second largest trading partner in 2015, with bilateral trade of AED 73.86 billion during the first nine months of 2015, comprising imports of AED 41.73 billion; exports of AED 14.54 billion and re-exports of AED 17.59 billion.

12

www.customsbulletin.com

FBR to elevate powers of regional chief collectors PESHAWAR: The Federal Board of Revenue (FBR) has decided to elevate the powers of regional chief collectors to deal with some complicated issues on their own choice to save valuable times of the regional traders as well as regional customs houses. Reliable source said that the decision has been taken due to late response of the Federal Board Revenue in important cases and this delay of response affected trade activities in respective regions.

Owing to this delay response from the central offices some time it force the traders to keep their imported goods in store house.

Saturday, February 20, 2016

CUSTOMS BULLETIN

multan customs earns Rs 25.12m through auction of seized goods, vehicles MULTAN imRAN ALi

www.customsbulletin.com

T

he Customs Intelligence and Investigation Multan Range office has generated Rs 25.12 million from the auction of seized vehicles and miscellaneous goods.

According to details, the Customs Intelligence has sold 10 conPiscated vehicles during the public auction which were seized during antismuggling activities. The Customs offered 14 seized vehicles, including Toyota Corolla X, Hilux Surf, Corolla G, Prado, Vitz, Land Cruiser for auction. Auto parts, welding rods, tyres and ball bearings were also auctioned. Additional Director Customs Nisar Ahmad supervised the auction process along with Superintendent Fareed ud Din Masood. In another auction, AntiSmuggling Organization has also earned Rs.5.7 million from the auction of seven seized vehicles and miscellaneous goods. Cell Phones and Pesticides chemicals auctioned were not offered any bid due to noninterest of the participants.

Meanwhile, The Customs Intelligence and Investigation Multan

Range has burned drugs in an open ground. The market value of the destroyed drugs is Rs 30 million.

According to details, Customs

had confiscated 266 kilograms of hashish in two anti–smuggling operations in the year 2003 and 2008.

Customs seized hashish of very fine

quality which was contraband and Customs have decided to destroy all drugs after obtaining permission from competent authority.

Additional Director Nisar Ahmad has shown full commitment to root out smuggling from country on this occasion.

ecc approves continuation of 0.3% wHt for non-filers ISLAMABAD

cuStomS BuLLetiN RepoRt www.customsbulletin.com

T

he Federal Minister for Finance Ishaq Dar chaired the meeting of the Economic Coordination Committee of the Cabinet (ECC) at the Prime Minister’s OfPice. ECC approved the proposal of the Federal Board of Revenue regarding continuation of the reduced rate of 0.3% WHT on nonPilers under section 236P of the In-

come Tax Ordinance, 2001, till the 29th of February 2016. ECC also approved the reallocation of 60MMCFD Mari shallow gas to its original allotees (Fauji Fertilizers, Fatima Fertilizers and Engro Fertilizers) with effect from 22nd February 2016. ECC approved the proposal submitted by the Ministry of Industries and Production for granting waiver of the outstanding amount of Rs 51.50 million as loan from the Federal Government to Shahdadkot Textile Mills as the unit has been liquidated and the Liquidator has settled the claims of Preferential creditors as per the

availability of funds/sales proceeds.

The approval for the liquidation process was granted by the Sindh High Court. On the proposal moved by the Ministry of Petroleum and Natural Resources for the Deregulation of the CNG prices, ECC constituted a Committee comprising of Special Assistant to the Prime Minister on Human Rights, Secretary Petroleum, Secretary Finance, Secretary Law, Chairman FBR and Chairman OGRA. The committee will thoroughly look into all aspects of the proposal and give its recommendations to the ECC for a Pinal decision. ECC also approved the

proposal of Ministry of Water and Power regarding the Supplemental Agreement for projects in the private sector under the China Pakistan Economic Corridor (CPEC) frame work agreement. Under the arrangement a revolving account (equal to 22% of monthly invoicing) shall be opened and maintained by the power purchaser for which the Ministry of Finance will provide the guarantee to fund such revolving account in case the power purchaser fails to place and or maintain the required fund in such account. Meanwhile, The Finance Ministry has prepared budgetary

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

proposals of Rs 5,730.297 million for Public Sector Development Program (PSDP) for 2016-17. The budget estimates of Rs 3,156.290 million have been proposed for two ongoing development projects while Rs 2,574.007 million are proposed for two new projects. According to the budget documents prepared by the Finance Ministry and exclusively available with Customs Today, for Pirst ongoing project titled Public Sector Reforms Enterprise (PSER), approved by the Executive Committee of the National Economic Council (ECNEC) on October 27, 2014.