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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

Daily

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Karachi, Sat February 24, 2018

PESHAWAR

IRFAN BAHADUR

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he Model Customs Collectorate Peshawar has generated Rs816.12million revenue in 22 days out of the whole month’s earmarked target of Rs1510.39million with a record growth of 7.69 percent. The Customs House Peshawar collected Rs269.23million of Customs Duty during 22 days against the target of Rs 581.21 million for the whole month of February

allocated by Federal Board of Revenue. Collector Customs Mohammad Saeed Jadoon informed Customs Today on Thursday that the Collectorate Peshawar has generated Rs397.38million revenue as Sales Tax during 22 days of February against the allocated target of Rs610.37million for the whole month of February in current FY2017-18. The MCC Peshawar received Rs118.36million of ST on VM palm oil in 22 days of February and did Rs33.52million as ST VM Com imports. The collectorate earned Rs9.15mil-

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lion revenue from the Federal Excise Duty in 22 days of February against the assigned target of Rs16.95million for the whole month. In the same way, the collectorate generated Rs131.21million revenue of withholding tax for the period of 22 days of February against Rs301.86million against earmarked target of WHT in the whole month. According to further detail, the Peshawar Customs has generated Rs14213.92million up to February against the assigned revenue collection target of Rs13199.45million.

Customs Peshawar posts 7.69pc record increase in 22 days of Feb

DG Valuation to revise valuation of Latex Vanyl & surgical gloves on April 18

‘FBR should remove hurdles for smooth promotion of national exports’

UAE border police catch 22 people hiding inside concrete mixer

Quetta Customs I&I confiscates Iranian diesel worth Rs2 million

Customs Peshawar has generated Rs816.12million revenue in 22 days | SEE PAGE 01 |

DG Valuation has decided to revise the Valuation Ruling No: 766/2015 on April 18 | SEE PAGE 02 |

FTO has stressed the need of further betterment in tax payment & tax collection | SEE PAGE 05 |

Border authorities have captured 22 people who tried to enter the UAE | SEE PAGE 07 |

Customs I&I successfully confiscated Iranian diesel worth Rs 2 million | SEE PAGE 08 |

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NAB recovers Rs1,832m, returns to Shaheen Foundation Saturday, February 24, 2018

National

KARACHI: Federal Investigation Agency’s (FIA) Anti-Human Trafficking Circle (AHTC), Karachi arrested Al Hashmi Travel Hajj and Umrah Chief Manager Qaiser Abbas Khan. He was running the travel agency without the legal authority. The same agency had been seized by FIA earlier. The official recovered 11 passports & other materials from the possession of the accused and his office premises were seized again.

DG Valuation to revise valuation of Latex Vanyl & surgical gloves on April 18

KARACHI

CUSTOMS BULLETIN REPORT

WAQAR AHMED ANSARI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 8.54 million by M/s Rozina Enterprises Hyderabad, it is learnt here. Sources told Customs Today that M/ Rozina Enterprises imported a consignment of aluminum made items, including window frames door frames and other things, and got it cleared from the PICT Karachi vide GDs on November 18, 2017 by paying customs duty at 6 percent after claiming the benefit of the SRO 562/2007. However, the subject items were correctly classifiable under the PCT 2409.2479 attracting customs duty at 12 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 8.54 million. These goods were cleared by Head Examiner Mubushir Khan. Sources said that the importer violated the provisions of Section 23 (8-A) of the Customs Act1969, Section 26 read with Section 48 of the Sales Tax Act-1990 and Section 121 of Income Tax Ordinance 2001 punishable under clauses (258) and 117 of Section 247(6) of the Customs Act-1969.

irectorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 766/2015 on April 18, 2018, it is learnt here. According to details, Surriya Butt said that the department was reviewing suggestions from various importers to set new prices of Latex Vanyl examination and surgical gloves. She said that some valuations, which were issued in 2015, were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international market. Sources said that a petition was submitted before the Customs Valuation in which change in prices of Latex Vanyl examination and surgical gloves was requested. Sources told that Valuation Ruling No: 766/2015 was issued on October 12, 2015. A meeting was held with the stakeholders on 13th February 2018. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained. Source told that during the month of January and current of

PCA detects tax evasion of Rs 8.54m by M/s Rozina Enterprises

February Importers submitted the application for review prices of different items, cause of increases prices in International markets. Meanwhile, The Directorate Gen-

eral, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 798/2016 on April 10, 2018, it is learnt. Surriya Butt said the depart-

ment was reviewing suggestions from various importers to set new prices of glycerin. She said some valuations issued in 2015 were being reviewed from the beginning.

Sh Rasheed moves NAB against PM, Capt Safdar

ISLAMABAD

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wami Muslim League Chief Sheikh Rasheed Ahmad has submitted his complaint against Prime Minister Shahid Khaqan Abbasi on the import of LiqueLied Natural Gas (LNG) from Qatar to Chairman National Accountability Bureau Justice (retd) Javed Iqbal. Earlier, Sheikh Rasheed had Liled a petition before the Supreme Court

for the disqualiLication of Prime Minister Shahid Khaqan Abbasi under articles 62 and 63 of the Constitution by declaring the LiqueLied Natural Gas (LNG) contracts reached under his watch illegal and unlawful but the apex court had dismissed his petition with direction to approach the appropriate forum. On Wednesday, Sheikh Rasheed approached NAB and submitted his application to Chairman NAB Justice (retd) Javed Iqbal who assured him that it would be examined as per law. In his

application, Sheikh Rasheed states that Abbasi awarded the LNG import contract in 2015 without observing transparency in the bidding process and seeks a probe into the LNG import contracts claiming that they were commissioned in violation of rules. Besides submitting the application against the prime minister for the import of LNG from Qatar, AML chief also submitted application against Captain (R) Muhammad Safdar allegedly for issuance of Rs9 billion for the development projects without PC-1 through

Cabinet Division. In his complaint, he stated that the Finance Ministry was reluctant to investigate the matter and even Opposition Leader Syed Khursheed Shah has also written four letters to Cabinet Division but not received any response of these letters. He pleaded in his complaint that it should be investigated that how and where the development funds of Rs9 billion were spent and who gave approval to release these funds. Chairman NAB, while receiving the complaint, assured the complainant that

the complaint would be examined as per law and according to rules and procedure. Later talking to newsmen after Liling the applications in the NAB, Sheikh Rasheed claimed he had done half of the work for the Bureau as he had also attached evidence of the Rs200 billion scandal. He claimed that the Pakistan Muslim League-Nawaz had decided to launch an assault against the Supreme Court chief justice and NAB chairman and now they are searching for evidence to launch a movement against the NAB chairman.

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SIALKOT CUSTOMS BULLETIN REPORT

www.customsbulletin.com ederal Tax Ombudsman Mushtaq Ahmed Sukhera has stressed the need of further betterment in tax payment and tax collection systems for providing maximum relief to the tax payers and the exporters. He said that the Federal Board of Revenue (FBR) should remove hurdles from the smooth way of promotion of national exports by reducing the prolonged pendency of the customs, income tax and sales tax refunds claims, in this regard. He stated this while addressing an important meeting of the Sialkot exporters held at Sialkot Chamber of Commerce and Industry (SCCI) here. FTO’s senior advisors, the ofLicials of SCCI and Sialkot Tax Bar Association (TBA) also attended the meeting. Federal Tax Ombudsman Mushtaq

Saturday, February 24, 2018

Ahmed Sukhera added that the FBR should ensure the early payment of the duty drawback, income tax and sales tax refunds claims for ensuring the smooth Llow of cash in the Sialkot industry, saying that the FBR should ensure the maximum facilities to the taxpayers, besides, averting to put additional Linancial load on the shoulders of the exporters in shape of levy of the additional taxes as well. He added that the FBR should also remove all the hurdles from the way of promotion of national exports. FTO Mushtaq Ahmed Sukhera stated that all out sincere efforts were also being made to en-

shtaq an Mu m s d u b FBR at the Tax Om h l t a r d e e Fed ent of ra add paym S ukhe y l d r e a e m nd Ah he e tax a s u re t n m e o c d n l shou ack, i uring drawb or ens f y t s u m d i a the nds cl n the x re f u c ash i a f t o s e l w lo sa ooth f str y the sm t indu o k l a i S

sure the early implementation of the decisions made by the Federal Tax Ombudsman (FTO), saying that FTO had been playing a pivotal role effectively in resolving the exporters’ tax-related issues amicably . FTO assured the Sialkot exporters that their tax related problems would be solved on priority. Earlier, the Sialkot exporters told the meeting that the Sialkot exporters were much perturbed as their duty drawback, sales tax, income tax refund claims (amounting Rs. 6.5 billion) had been lying pending for the last several years. They said that the inordinate delay in the payment of these refund claims was causing Linancial crisis for the Sialkot exporters, besides, creating hurdles in the smooth Llow of cash in the Sialkot’s export industries as well. The SCCI ofLicials said that the Sialkot exporters were the “roaming ambassadors” which had been playing their vital role in strengthening the national economy by earning the foreign exchange to the tune of US$ 2 billion annually.

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EDITORIAL

Loan of $500m from Chinese bank

he government has signed another commercial loan programme of $500 million with the Industrial and Commercial Bank of China, bringing the total loan it obtained from the bank to $1 billion just in three months. Last month, the government took a total of $704 million loans, taking foreign borrowings to new heights of $6.6 billion just in seven months of the current fiscal year. Reports suggest the external loans could cross $10 billion mark for the second consecutive year. As the elections are nearing, the speed of taking loans has been unwittingly revved up and there seemed no speed breaker to stop it. As the external debt and liabilities are $90 billion mark, the volume of foreign loans is now equal to 86 percent of the budgetary allocations which were approved by parliament in June last year. After investing in billions of dollars projects under the China Pakistan Economic Corridor, China has emerged as the single largest loan provider, lending a total of $1.6 billion during the last seven months. The money is equal to one-fourth of the total foreign loans the country has received during the period. Pakistan also received another $610 million under the head of project financing during the current fiscal year. The government took the loan from the Chinese bank to support its depleting foreign exchange reserves and no one knows how the government will deal with the financial catastrophe when it will have to return the loans. The debt servicing has already been a problematic area and accepting loans from one source or the other is adding insult to injury. In the absence of increase in the industrial output, it is not a rocket science to understand that the economy is heading toward disaster. Earlier, the government had depreciated Pakistani rupee, which not only increased the volume of loans, but inflation in the country. On the other hand, the move also opened a Pandoraâ&#x20AC;&#x2122;s Box to fight corruption, money laundering and smuggling at the same time. It is yet to be seen how the loan of $500 million will prove beneficial for the economy, but a snowball of debt servicing cannot be ruled out in the near future. Unfortunately, the State Bank of Pakistan sometime becomes part of problem than the part of solution.

Dictation by foreign lending agencies S

LAHORE

DR AFTAB AFZAL

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enate Chairman Mian Raza Rabbani has called it extremely worrisome that the International Monetary Fund and other financial institutions are interfering in the internal affairs of the country over the devolution of powers under 18th Constitutional Amendment and are also creating an impression that the National Finance Commission is a futile exercise. The criticism of the senate chairman came at a time when the State Bank of Pakistan has reported that the countryâ&#x20AC;&#x2122;s external debt and liabilities have reached $89 billion. The

economists have already feared the external debt and liabilities of the country are fast approaching the $90 billion mark and the government has little options to mend the financial affairs and arrest the depleting foreign exchange reserves. The economists also point out that in principle the total external debt and liabilities are higher by $5.8 billion after the government took $13.2 billion loans just in one year. The volume of external debt and liabilities was $75.7 billion in December 2016 and the gross official reserves were $18.6 billion. According to Rabbani, the IMF has drafted a bill in connivance with the World Bank to control the dis-

tribution of resources under the NFC award. The move is strictly against the spirit of the Constitution and the 18th amendment. The Council of Common Interest is a powerful institution to manage the affairs between the centre and the federating units and it assures equal distribution of resources in the country. The chairman senate is right in his observations, but the country has been mortgaged to the international financial institutions. The situation has reached the point where the donor agencies have started dictating their terms and conditions to run the financial affairs of the country. The piling up of loans has

eroded the countryâ&#x20AC;&#x2122;s ability to devise its financial policies on its own and in an independent manner. Industry is the basic source of revenue generation, but it is been heavily taxed for one reason or the other. Most of the industrial units have closed down and the others are on the verge of collapse due to the negligence of the officials who matter. Until the country is able to generate its own resources through indigenous means, the foreign lending agencies will continue to dictate the government of their terms and conditions. Looking toward the IMF for another bailout programme will be a disaster for the economy.

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Dutch economy sees strongest growth in 10 years Saturday February 24, 2018

World

AMSTERDAM: The Dutch economy grew by 3.1 percent in 2017, the strongest growth in 10 years, Statistics Netherlands reported on Wednesday. In the last quarter of 2017, the economy’s growth decreased somewhat, but was still strong at 2.9 percent compared to the last quarter of 2016. Compared to the third quarter of 2017, the GDP grew by 0.8 percent and exports in particular contributed to economic growth in the fourth quarter. Household consumption decreased somewhat, but the industry grew more. “The Dutch economy is in good shape”, Minister Eric Wiebes of Economic Aﬀairs and Climate commented to NOS.

UAE border police catch 22 people Russia actively increasing hiding inside concrete mixer poultry meat exports MOSCOW

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DUBAI

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order authorities have captured 22 people who tried to enter the United Arab Emirates hiding inside a concrete mixer loaded on a truck, the country’s WAM news agency reported. The agency said that the Federal Customs Authority in the Emirate of Sharjah were able to stop the people smugglers at the customs center of the border shipping. Capturing the illegal migrants reportedly took place earlier in February, after the truck was inspected by the thermal and X-ray images as part of routine inspections at the border. The images revealed that there were 21 Asian men and one African women hiding inside the cement mixer, exposing themselves to danger in order to enter

Japanese investment on the rise in Turkey he Japanese multinational electronics and electrical-equipment manufacturer Mitsubishi inaugurated a new air-conditioner factory on the outskirts of the city, which came with an investment of US$100 million. Only a few kilometers from this factory site continues the construction of another production plant, undertaken by the Japanese firm GS Yuasa, which has invested $65 million to produce automotive batteries. Meanwhile, Power generation amounts (see below) created through renewable energy sources are growing rapidly around the world, largely due to international eﬀorts to combat global warming and a dramatic reduction in power generation costs. Urgent action is needed in Japan, where delays in measures to expand the use of renewable energy appear likely to have a negative impact on Japan’s business environment. –CB Report

the emirate illegally. Meanwhile, Last week, the federal customs authority and Sharjah Police discovered the stowaways, who included a girl of African origin and 21 Asians, hiding in the cement mixer of the vehicle. Customs were tipped off about the illegal smuggling attempt and so stepped

up inspections at the border. “We received reports about a plan to smuggle immigrants into the country. Extensive inspections were carried out,” said Mr Ali Al Kaabi, chairman of the customs authority. “Customs officers scanned cement mixer and found dozens of individuals hiding.”

China’s cross-border e-commerce trade rose by 80% in 2017

hina has seen a rise in cross-border e-commerce trade, with turnover rising 80.6 per cent to 90.24 billion yuan last year over 2016. The average annual growth rate for the past three years is more than 50 per cent, said Yu Guangzhou, head of China’s General Administration of Customs (GAC) recently at the Lirst Global Cross-Border E-commerce Conference in Beijing. China’s e-commerce exports increased by

41.3 per cent to 33.65 billion yuan last year, while imports rocketed by 116.4 per cent to 56.59 billion yuan. Chinese customs handled 660 million manifests for e-commerce trade in the past year, 8.4 times as much as for conventional imports and exports, a Chinese news agency reported cited Yu as saying. Around 220 countries and regions were covered by China’s cross-border e-commerce network as of 2016. –CB Report

ussia’s poultry industry has been developing rapidly during the last several years, leading to a signiLicant increase in poultry meat production that meets the country’s domestic needs. According to InformationAnalytical Agency EMEAT, the volume of production of poultry meat in Russia amounted to 4.087 million tons in slaughter weight (5.561 million tons in live weight) for the period from January to November 2017. Domestic production increased 8.0% compared to the same period in 2016. The volume of poultry meat imports increased 7.8% compared to the same period in 2016 and amounted to 92,600 tons for January to November 2017. Russia’s poultry industry has been developing rapidly during the

last several years, leading to a significant increase in poultry meat production that meets the country’s domestic needs. According to Information-Analytical Agency EMEAT, the volume of production of poultry meat in Russia amounted to 4.087 million tons in slaughter weight (5.561 million tons in live weight) for the period from January to November 2017. Domestic production increased 8.0% compared to the same period in 2016. The volume of poultry meat imports increased 7.8% compared to the same period in 2016 and amounted to 92,600 tons for January to November 2017. The report pointed out that Brazil remains the leading poultry supplier, accounting for 84.1% of all supplies. Argentina is second in terms of the source of imported products, at 14.9%. Imports of chicken meat to Russia from the countries outside the former Soviet Union increased 10% compared to 2016 and amounted to 91,400 tons.

NK economy on Turnbull US agenda

alcolm Turnbull will talk North Korea and business tax cuts with Donald Trump in Washington as he takes a break from the Barnaby Joyce scandal. The prime minister has lined up a series of high-level meetings with top US officials, as well as a visit to the White House with President Trump. Mr Turnbull is expected to address the threat North Korea poses the Asian region in several meetings, including a sit-down at the Pentagon. The president’s pick for US Ambassador to Australia, Admiral Harry Harris, last

week spoke about the belief North Korea’s pursuit of nuclear weapons is aimed at blackmailing South Korea into reunifying into a single Communist nation. Mr Turnbull will also talk economic development and business tax cuts, which President Trump was able to pass but the prime minister has so far been unable to. But there will be no discussion about gun control in the wake of the latest US school shooting, or the Obama-era refugee swap deal that angered Mr Trump when he spoke to Mr Turnbull in 2017. –CB Report

Woolly shepherd secures new Natherland deal

AMESTARDAM

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oolly Shepherd is to start exporting to the US after securing a fresh deal with a Netherlands retailer. Woolly Shepherd, which produces woollen panels for acoustic damping, has tripled its turnover since securing its Lirst

deal with Dutch e-retailer Zilenz in 2016. The company currently exports 15 per cent of its products to Europe and is expecting to increase this to 25 per cent in the next three years. Tim Simmons, managing director at The Woolly Shepherd, said: “We’ve come a long way since launching the business seven years ago. Starting with just two members of staff, we now employ eight

people and export to many different countries. “Exporting has always been an integral part of our growth plans. But, for a small business like ours, it can sometimes be hard to Lind the headspace to focus on international growth. Our trade advisers at DIT have supported us every time we’ve secured new orders in foreign markets. The team has provided clarity on business

culture, import rates and regulations for each country we’ve targeted. “The U.S. is our next target and we’ve already received great advice from DIT on how to approach American buyers. The best tip I’d give to businesses looking to export would be to seek guidance from expert organisations to help navigate the process, particularly if you’re short on resources.

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Sargodha ASO impounds non customs paid Toyota car SARGODHA: The Customs Anti-Smuggling Organization (ASO) has impounded a tempered and non-customs paid foreign origin Toyota Corolla car worth Rs1628160 involved duty and taxes Rs 828160. Sources told Customs Today that Collector Asif Mehmood Jah received information that some non-duty paid vehicles are plying on roads of Faisalabad and Sargodha. After receiving the tip oﬀ he directed the Collectorate to take all necessary measures to check illegal vehicles.

Saturday, February 24, 2018

CUSTOMS BULLETIN

Quetta Customs I&I confiscates Iranian diesel worth Rs2 million QUETTA WAQAR AHMED ANSARI www.customsbulletin.com

he Directorate of Customs Intelligence and Investigation successfully conLiscated Iranian diesel worth Rs 2 million. Sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Chaudhary received a tip-off that some smugglers are trying to smuggle Iranian diesel from Quetta into different cities. He immediately constituted a raiding team. The team In-Charge, Preventive, Wajid ur Rehman and others enhanced the surveillance on the Quetta Highway and started searching vehicles During the search operation, the team intercepted an oil tanker bearing registration No: QX-7251 which was going from Quetta to other cities. During the checking, the customs team recovered 22,000 Iranian diesel worth Rs 2 million. The customs team seized diesel and arrested two smugglers including driver. The Directorate of Customs Intelligence and Investigation Quetta registered an FIR against the smugglers and started investigations.

Customs reimburses Rs104m refund claims during seven months ISLAMABAD

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he Model Customs Collectorate Quetta paid off Rs104million as refund claims under the head of CD during the Lirst seven months FY17-18. According to details given by Ashraf Ali, Collector, Model Customs Collectorate (MCC) Quetta, that, during above said period, the collectorate

accommodated the business community well as it compensated exporters with an amount of Rs5029.831million during Lirst seven months FY1718. Explaining the month-wise details, he said that, during the month of January 2017-18, the Collectorate of Quetta reimbursed Rs5.171million to the exporters under the head of CD while it did Rs8.474million of rebate refunds during the month of December FY17-18. He told CT that, during the month of November FY17-18, the collectorate paid rebates of Rs6.247million as CD while the 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

MCCQ reimbursed Rs29.902million under the head of CD. The Rebate Section of the MCCQ paid Rs11.894million rebate refunds during the month of September FY17-18 under the same head. Ashraf Ali further told CT that, during the month of August FY1718, the collectorate paid nil rebate whereas the collectorate reimbursed Rs42.177million of CD during the month of July FY17-18. He assured the businessmen of CD’s refund payments during third quarter (January to March) so as to facilitate them to run their business smoothly.