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pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 302

Karachi, Fri February 26, 2016

LAHORE

M FAIZAN

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ederal Board of Revenue (FBR) Chairman Nisar Mohammad Khan will arrive in Karachi on March 1 (Monday). During his visit to Karachi, he will inaugurate Large Taxpayers Unit-II. Sources of informed Customs Today that decision to establish Large Taxpayers UnitII is taken to further enhance the performance of the FBR to resolve the issues of big industries. Sources said that only one Large Taxpayers Unit for whole Karachi is not enough so the FBR

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announced to establish another Large Taxpayers Unit to facilitate the business community. The inauguration ceremony will be attended by members of the Federation of Cambers of Commerce and Industry. There are chances that Federal Finance Minister Ishaq Dar may grace the occasion.

Meanwhile, Federal Board of Revenue (FBR) Chairman Nisar Mohammad will preside over the sixth meeting of the Boardin-Council which is scheduled to be held today (February 25).

According to the agenda items, the Board-in-Council will adopt the minutes of the board meeting held on February 16, 2016. The BIC will also consider delegation of powers to member legal FBR, job description and powers of member Enforcement.

Collector Saifuddin appoints focal person to address exporters’ problems

NA body approves PSDP proposals of more than Rs 5.73b for 2016-17

Minister reviews progress on PM solar tub-wells scheme

Director Intelligence Imtiaz to meet transporters to resolve their issues

Diplomats should make efforts to boost exports: LCCI chief

Collectorate Export Saifuddin has asked the authorities concerned to ensure | See pAge 02 |

NAStandingCommitteeonFinanceand RevenueonWednesdaygrantedconditional | See pAge 03 |

Sikandar Hayat Khan Bosan has reviewed progress on PM’s mark up free financing | See pAge 04 |

FBR Chairman has directed Customs Intelligence Imtiaz Khan to hold meeting | See pAge 12 |

Diplomats would have to take concrete and result-oriented efforts to expedite | See pAge 09 |

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Customs Appellate Tribunal declares seizure of ceremic tiles as legal Friday, February 26, 2016

LAHORE: The Customs Appellate Tribunal had declared the seizure of ceramic tiles as legal and decided the case in favor of the Customs adjudication. The case was filed by the departments on brief facts, as reported in Order-in-Original that the staff of Customs (ASO) Lahore intercepted a Suzuki bearing registration No.LET-1682 which found loaded with ceramics tiles. During the examination, the driver told that the tiles were loaded from the premises of M/s AR Chudhary Industries where the huge quantity of ceramic tiles were stored. The staff of ASO Customs visited the said godown and recovered Irani origin tiles, on demand the owner of said godown failed to produce any legal documents regarding lawful possession of recovered goods.

National

collector Saifuddin appoints focal person to address exporters’ problems

3 key posts in Sindh Board of revenue lying vacant for several months KARACHI

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KARACHI

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ollector Customs Collectorate Export Saifuddin Junejo has asked the authorities concerned to ensure the smooth working scenario within the Collectorate, so that the exporters would not face any issue in their export consignments.

Sources informed Customs Today that a delegation of exporters recently held a meeting with the Collector Export in his ofUice and informed him about the issues being faced by them during export of the consignments.

The sources informed Customs Today that the exporters’ delegation lodged a complaint about the delay in clearance of consignments by Customs authorities and hindrances in issuance of rebate claims.

The Collector Export nominated the Deputy Collector Wasif Memon as the focal person in connection to address the problems being faced by the exporters. Meanwhile, Collector Customs Export Dr Saifuddin Junejo, has streamlined the functioning of his collectorate and issued guidelines for the exporters who wish to claim DTRE concessions. “In order to streamline the work of examining the application for DTRE, the Manufacturing Bond and Export Oriented Unit, the processing staff is

t least three key-posts are vacant in the Sindh Board of Revenue, badly affecting routine work in the department.

Sources said that three significant posts in board, including Member Land Utilization (LU), Member-Judicial-II and Member-Judicial-III are laying vacant for the last several months, adding that all the posts are of Grade-20 officers. The sources informed Customs Today that the work related to the Land Utilization is being affected badly due to the non-appointment of regular Member LU. The sources further informed that the Member-LU is a significant post as all lands is almost fallen in the jurisdiction of the Land Utilization Department of the board. When contacted, Senior Board Member Muhammad Waseem said that the board has already informed Sindh Chief Minister Syed Qaim Ali Shah and Chief Secretary Muhammad Siddiqui Memon about the vacant posts.He told Customs Today that the high authorities, including the chief minister and the chief secretary have assured the board that the vacant posts.

hereby directed to ensure submission of the following documents by the applicant,” according to a letter available with Customs Today.

Now the exporters have to produce NTN certiUicate, sales tax registration certiUicate, certiUicate of incorporation under the Companies Ordinance,

1984, along with Form-29 showing names of the Directors or Partnership Deed or Proprietorship certiUicate, CNIC of the Directors/Partners or Proprietors as the case may be, veriUication of applicant’s signatures from bank concerned and the list of machinery installed in the applicant’s

manufacturing facility. Manufacturing process Ulow chart showing extent of wastage at each step, per annum production capacity of the items intended to be exported, summary showing payment of utility bills during 2 months along with copy of last paid bill etc.

Finance Ministry declares telecom as highest tax paying sector

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ISLAMABAD

M ArShAD

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he Finance Ministry has declared the telecom sector as one of the highest tax paying sectors in terms of withholding taxes. In Finance Act 2015-16, the government increased sales tax on import of different varieties of mobile phones by 100 percent. The sales tax applicable on various categories of imported mobile phones is increased from Rs

150, Rs 250 and Rs 500 to Rs 300, Rs 500 and Rs 1,000, respectively. Regulatory duty imposed on the import of mobile phones will be withdrawn once new rates are implemented. In a written reply, the Finance Ministry told the National Assembly on Wednesday that withholding income tax deducted from consumers is adjustable at the time of Uiling of their returns. Rates of various taxes charged from consumers include 14% withholding income tax on the amount of bill or sale price of internet

prepaid card or prepaid telephone card or sale of units through any electronic medium or whatever form and 18.5% federal excise duty on telecom services (Islamabad territory). The Finance Ministry further said that it was not correct that double tax was being collected and charged by the cellular mobile companies from the consumers. There are actually two different types of taxes being collected from the consumers under different tax statutes, one is advance income tax under Income Tax

Ordinance, 2001 and other is sales tax/FED charged at the time of making calls. Advance income tax is adjustable against income tax liability of the consumer and in case of no tax liability, the tax deducted is refunded. When contacted, a wellplaced source at Federal Board of Revenue (FBR) told Customs Today that FBR collected Rs 43 billion on account of withholding tax during 2014-15. Only 0.9 million out of 120 million total users deposited tax return claims and got back what they

paid in advance. The remaining amount of more than Rs 40 billion was automatically conUiscated by the government at the end of the Uinancial year. The source said that the telecom companies and thousands of franchisers were charging the 14% advance tax from consumers on every recharge but neither FBR nor PTA had human or technological expertise to check whether the huge advance tax collected from users was actually deposited in national exchequer or not.

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Gwadar Customs recovers hashish, smuggled perfumes KARACHI: The Customs Collectorate Gwadar has recovered a huge quantity of fine quality hashish and smuggled perfumes during a crackdown.

Sources informed Customs Today that the Gwadar customs authorities received information about the smuggling of narcotics from a house which was located in Goshahi area.The authorities constituted an ASO team which intercepted a Mazda truck and recovered 60 kilograms of fine quality hashish and 100 bottles of smuggled perfumes. The authorities also taken into custody a suspect. Sources said that the market value of the seized hashish is Rs 6 million.

Federal Service tribunal Bench to hear 3 cases related to FBr employees

Friday February 26, 2016

National

NA body approves pSDp proposals of more than rs 5.73b for 2016-17

ISLAMABAD

NAeeM uLLAh tArIQ www.customsbulletin.com

division bench of the Federal Service Tribunal will hear three cases on Thursday (today) related to the employees of the Federal Board of Revenue (FBR).

The bench comprising Members, Syed Rafique Hussain Shah and Syed Muhammad Hamid, will hear the cases in which petitioners had submitted “promotion” and “up-gradation” matters. Appellant Muhammad Moinud Din and Abdul Ghaffar had submitted a case regarding their promotion at the department which they said had not been granted to them yet. Another appellant, Muhammad Zulifqar had filed petition for his scale up-gradation.

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FBr declares four factories as ‘blacklisted’ KARACHI

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he Federal Board of Revenue (FBR) has issued orders to “blacklist” four factories. All the four factories are involved in submission of less tax returns which are not according to their actual sales. Additional Commissioner Regional Tax Office-I Tahir Awan told Customs Today that the factories which are blacklisted by the FBR includes Sadia Hosiery, Shamim Knitwear, Shah Jahan Chemicals, and Sher Shah Colours. Sources said that despite issuing several reminders, all these companies had failed to submit their tax returns.

After their failure, the RTO-I forward the matter to the FBR headquarters, which decided to declare the factories as “blacklisted”. It is pertinent to mention here that FBR also issued notices to te owners of Hanan Sugar Mills and Nozari White Cement.

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ISLAMABAD

M ArShAD

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he National Assembly Standing Committee on Finance and Revenue on Wednesday granted conditional approval to budgetary proposals of Rs 5730.297 million for Public Sector Development Program (PSDP) of the Finance Ministry for the upcoming Uiscal year (FY 2016-17).

The budget estimates of Rs 3156.290 million were proposed for two ongoing development projects, including Public Sector Reforms Enterprise (PSER) and Automation Project of Central Directorate of National Savings (CDNS) phase-II. Similarly, Rs 2574.007 million proposed for two new projects including construction of National Academy of Public Finance and Accountability (NAPFA) in Islamabad and Energization and Functionality of Construction/ Extension of Audit House. A single leafed document comprising the PSDP proposal was laid before the committee, therefore committee directed the Ministry of Finance for furnishing of Uinancial breakup on Public Sector Enterprises Reforms (PSER) projects, later. Finance committee met here with Chairman Qaiser Ahmad Sheikh in the chair to discus and to scrutinize the Finance Ministry’s the budgetary proposals relating to Public Sector Development Programme (PSDP) for the Financial Year (Budget) 2016-17 and to delib-

erate on a number of bills. The committee members were briefed by the deputy governor, State Bank of Pakistan on the reasons and objectives of the Foreign Exchange Regulation (Amendment) Bill, 2014. However, committee expressed apprehensions on penalty amount proposed by the State Bank on any contravention of the provisions under the Act. Deputy Governor SBP told the committee that existing provisions of act does confer power on SBP to suspend or

Finance committee met here with chairman Qaiser Ahmad Sheikh in the chair to discus and to scrutinize the Finance Ministry’s the budgetary proposals relating to public Sector Development programme (pSDp) for the Financial Year (Budget) 2016-17 and to deliberate on a number of bills

excise seizes 72 tax defaulter vehicles in crackdown LAHORE

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M IMrAN MehAr

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he Punjab Excise and Taxation Department has seized 72 vehicles during a crackdown against token tax defaulters.

Sources told Customs Today that motor branch of the department has started a special crackdown against token tax defaulters and unregistered vehicles. On special directions

of Excise Director General Akram Ashraf Gondal, the motor branch established checkpoints at Liberty, Defense Housing Society, Thokar Niaz Baig, Ravi Toll Plaza, Sagian Road and Sherakot areas. During the checking process, the motor branch seized 72 vehicles due to shortage of token tax. Many vehicles were later released after payment of taxes.

Excise and taxation ofUicer Adeel Amjad and inspector Zakaullah were part of the team. Motor branch checked more than 300 vehicles and

veriUied their documents through latest systems and online veriUication software of excise and found 72 defaulter vehicles that were seized until their owners pay their pending amount. Earlier the motor branch of the excise and taxation department nabbed a vehicle which was owned by son of Chief Minister of Khyber Pukhtunkhawa. Earlier the motor branch of the excise and taxation department nabbed a vehicle which was owned by son of Chief Minister of Khyber Pukhtunkhawa.

cancel the license of authorized dealers, money changers and exchange companies on violation of this Act. At this the committee directed the Ministry of Finance and State Bank of Pakistan to provide comparison statement of other countries with regard to the penalties imposed in similar Act. Moreover, it was unanimously decided that the subject Bill would be considered in the next meeting of the Committee and stakeholders may be called.

pak-India trade through border slows down rade activities between Pakistan and India have slowed down in February because of various reasons. According to officials of the Land Freight Unit Wagah, imports by Pakistan has fallen up to 50 percent in February due to start of the new season. Tomato and other vegetables has big share in Pakistani imports from India which has fallen because of local production.

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Private firm gets licence to import, sell LNG ISLAMAbAD: Oil and Gas Regulatory Authority (Ogra) on Wednesday issued a licence to a private company to procure and sell LNG to the consumers including CNG stations throughout the country.Earlier, only the government-owned entities, SSGC and SNGPL, were allowed to sell gas to the consumers, but this is for the first time that a private company, Universal Gas Distribution Company (UGDC), has been allowed to sell the commodity “The permission given to a private company to procure LNG from the international market will not only ensure the smooth supply of the commodity to the CNG stations, but will also reduce its price,” an expert told the scribe.

Friday, February 26, 2016

Business

pSX loses early gains, closes positive KARACHI

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he Pakistan Stock Exchange (PSX) Thursday lost most of the early gains till closing but remained in green zone as KSE100 index added 15.93 points to reach 30802.53 points level.

The stocks recorded the highest trading level of 30936.71 points and lowest level of 30712.85 points, with the volume of 121 million shares, having about Rs5.17 billion value. As many as 328 companies were active; of which 142 advanced, 167 declined and 19 remained unchanged. Commercial banks was the

rs 3.38/unit cut recommended ISLAMABAD

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top traded sector with 15,839,500 volume, while technology & communication remained second with 14,105,000 volume.

The three top traded companies

govt lauded for announcing zero-rating tax regime for textile industry

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KARACHI

he Central Power Purchase Agency (CPPA) has recommended Rs3.38 per unit cut in electricity tariffs from March. The CPPA forwarded a summary in this regard to the National Electric Power Regulatory Authority (Nepra), recommending the reduction under the monthly fuel adjustment of January. According to the summary, per unit cost of electricity production through high speed diesel was Rs12.20, through furnace oil Rs6.28 and gas Rs6.01 during January.

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were TRG Pak Ltd with a volume of 9,566,500 and price per share of 24.00 (-0.70), K-Electric Ltd with a volume 8,234,500 of price per share of 6.82 (-0.06), and Jah.Sidd. Co with

a volume 6,696,500 of price per share of 19.55 (0.10). The top three gainers were RaUhan Maize with price per share 8189 (389), Bata (Pak)with price per share of 3385.57 (157.57) and Pak Tobacco price per share of 1220.32 (58.11).

The top three losers were Nestle Pak with price per share of 6887.50 (362.50), SanoUi-Aventis with price per share of 493.92 (-25.99) and Shezan Inter per share of 482.84 (25.41). Earlier, the Pakistan Stock Exchange continued the previous day’s bullish note at opening and added 120.42 points to reach 30907 points in early trading. Despite shedding some early gains, the PSX remained in green zone and added 70.96 points to reach 30857.56 points level till midday.

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epresenting the textile industrialists, All Pakistan Textile Mills Association (Aptma) Chairman Tariq Saud has lauded the government’s decision to reintroduce zero-rating tax regime for the export-oriented textile industry.

Tariq Saud, in a statement, especially thanked to Prime Minister Nawaz Sharif, Finance Minister Ishaq Dar and Chief Minister Shah-

baz Sharif for taking this important decision. He further appreciated the approval for release of Rs 5 million refunds to claimants, for which refund payment orders have already been issued and checks are awaited.

He said these initiatives would greatly help manage liquidity issues. However, he added that the textile industry was currently facing serious viability issues that are needed to be addressed through implementation of the textile industry package, which contains implementation of announcement of reducing electric-

ity tariff by Rs 3/KWh through slashing the surcharges levied on the base tariff to bring tariff for industry at Rs 9/KWH that is at par with the region.

In order to save the export-oriented textile industry of the country, imposition of GIDC should be taken away from the industry completely, he said, adding that the textile industry has also demanded provision of DLTL at 5% against the export of yarns, fabrics, made-ups and garments to compensate against incidentals of carousel types of levies, surcharges and taxes.

cDA has money to build Safari park ISLAMABAD

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DA mandarins have decided to build a Safari Park of “international standard” inside the F-9 Fatima Jinnah Park, and allocated an “initial amount” of Rs400 million for the 100-acre amusement park. Their decision, taken in a meeting held on Wednesday under CDA Chairman Maroof Afzal, sounded amusing for two reasons: citizens of Islamabad believe their elected councillors would be running the affairs of the city, and two, the pitiable conditions in Marghazar Zoo expose the inefficiency of the CDA. While CDA spokesman Ramzan Sajid assured “the zoo will also be upgraded”, Member Environment Sanaullah Aman reminded Dawn that city parks would be out of the purview of the elected Islamabad Metropolitan Corporation (IMC). This stand clashes with a recent government statement that devolved the environment directorate, and many others, to the IMC. “Development of parks is the responsibility of the CDA,” the officer said. “That’s why we have decided to establish a Safari Park.”“I’m also in talks with experts to know their point of view about shifting of Kaavan (the lone elephant in Margazhar Zoo) to a comfortable place till the Safari Park is ready,” he added.

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Minister reviews progress on pM solar tube-wells scheme ISLAMABAD

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ederal Minister for National Food Security and Research Sikandar Hayat Khan Bosan has reviewed progress on Prime Minister’s mark up free Uinancing for solar tube-wells scheme launched under the farmers’ package. The meeting was attended by the representatives of provincial

agriculture departments (water management and agriculture engineering) of Punjab, Khyber Pakhtunkhwa, Balochistan including representatives of GilgitBaltistan, Islamabad, State Bank of Pakistan, Zarai Taraqiati Bank (ZTBL), Finance division and Planning Department.

The Federal Water Management Cell director general presented the status of actions taken by the ministry since December 2015 besides

brieUing the participants on the draft PC-I and Standard Operating Procedures developed for smooth implementation of the scheme in Pakistan.

The minister highlighted the role of provincial departments not only in creating awareness about the scheme amongst the farming community but in successful implementation of the scheme in accordance with the criteria approved by the PM. Meanwhile, Prime Minister Muhammad Nawaz Sharif, chairing

meeting of Cabinet Committee on Energy, Monday directed timely completion of different ongoing power projects across the country and said he would personally monitor the progress to ensure it.

The prime minister said signiUicant addition of power to the national grid would minimise loadshedding. He said increased power generation would also contribute to economic growth through increased industrial activity.

Federal Secretary Water and Power briefed the meeting that the year 2015 remained most stable as well as the best period for generation of power during the last ten years due to lowest line losses in terms of technicalities and recovery. There was 5.8% reduction in the line losses during the year due to better monitoring and robust strategy to eliminate corruption and leakages, the Secretary told the meeting.

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enator Ayesha Raza Farooq is an active member of the ruling Pakistan Muslim League Nawaz (PML-N) in the Upper House of the Parliament.

She is always well prepared on the topic of discussion either in the Senate or standing committees, therefore, she has been made member of a number of committees, including Uinance revenue, foreign affairs, national health services regulations and coordination, law and justice, devolution of powers, the project of PakChina Economic Corridor and issue of lapse of various foreign scholarships. Recently, she graced Customs Today by accepting a request for an interview.

To a question about her views about Uinance policy, she said that all the economic indicators reported signiUicant growth in national economy. Even the international monetary institutions have also acknowledged Pakistan’s economic progress. If we look at economic expansion for the current Uinancial year, we Uind that it is led by services as growth in manufacturing slowed. Industrial growth was hobbled by a slowdown in large-scale manufacturing to 3.3% owing to continued power shortages and weaker external demand. Moreover, agriculture

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Friday, February 26, 2016

growth remained modest at 2.9%. Private Uixed investment slipped to equal 9.7% of Gross Domestic Product (GDP) from 10.0% a year earlier because of continuing energy constraints and the generally weak business environment that has depressed investment for several years.

She said that Finance Minister Ishaq Dar was working day and night in preparation of budgetary proposals for the next Uiscal year with which focus on providing maximum relief to the masses. Steps announced in the Uiscal budget will help attracting investment and creating job opportunities for the youth as well as incentives for agriculture sector, especially loans for small farmers and waiver of duties on solar tube-wells will boost performance of the relevant sectors.

To a question about performance of the Federal Board of Revenue (FBR) in meeting the target of revenue collection, she lauded the increase in taxes on luxury items, growth in gross domestic product (GDP), decrease in inflation, increase in foreign reserves and remittances, decision to phase out Statutory Regulatory Orders (SROs) and increase in budget for Benazir Income Support Programme (BISP). Although the FBR is performing very well, more measures and steps are required to be taken to further empower the tax collection body to broaden the tax net. Actually, the Volunteer Tax Compliance Scheme is a step to-

wards the broadening of tax net as well as documentation of the national economy.

Pakistan like other underdeveloped and developing countries also faces the problem of undocumented economy. “ Therefore, we need to take more steps to bring the undocumented economy in black and white form,” she said.

ga ys me a s a z ra ic yesha o econom A r o t e dt Sena relate shgar in th s t c e j a pro gk to linkin ic of china r o d i r cor dar publ f gwa e’s re l o p t r o o e p ip t kistan antly boos h a p e h c t growt ignifi s d d n l a u co ent vestm years n i e t priva n coming i

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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

trade within D-8 countries

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ccording to newspaper reports, a group of eight developing nations, which include Indonesia, Iran, Malaysia, Nigeria, Pakistan, Turkey, Bangladesh and Egypt, is ready to implement preferential trade agreement from July 1 this year to give impetus to intratrade activities. The group, formed in 1997, is officially named as D-8 and the proposed treaty will not only increase intra-trade within the member states up to 20 percent, but will also open the vistas of investment.

The trade volume of the groupis likely to reach $500 billion by the end of 2018. The D8 member countries are also ready to enhance collaboration and cooperation in various fields and will maintain active liaison within the customs departments to encourage legal trade. The customs officials of the member states are likely to meet within three months to develop a standard operating system and devise rules for the implementation of the free trade agreement.

So far, the member states are focusing on the ratification of the agreement and for the resolution of rules of origin issue.

A meeting of the supervisory committee has been tasked to complete its working on a document for the settlement of disputes and to encourage the member states to ratify the preferential trade agreement and give incentives to the private sector to develop business-to-business contacts. The promotion of trade within the group will be beneficial for all the member states as they will not only have to reduce their reliance on the Western markets but will also have to curtail their trade volume with newly emerged industrial giant China. Under the agreement, the member countries will provide concessions on tariff lines and Islamabad has sent its concessionary list to the D-8 secretariat.

Experts believe that the preferential trade agreement will eventually pave the way for signing of a free trade agreement among D-8 countries. The current trade volume within the D-8 countries is very small and needs to be enhanced. The total exports of Pakistan to D-8 member states remained $1.602 billion against imports of $3.67 billion in 2014-15.

Pakistan’s trade volume with its neighbouring country Iran is $30 million, Turkey $309.2 million, Bangladesh $697.6 million, Indonesia $143.2 million, Malaysia $205.1 million, Egypt $150.9 million and Nigeria $66.7 million.

Industrial units should be documented A

LAHORE

Dr AFtAB AFZAL

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ccording to newspaper reports, the government has no updated record of industrial units in the country, including its largest province Punjab, giving a severe blow to the efforts to document the national economy. No updated or ofUicial industrial directory has been prepared and the available record is void of any reasonable data which could help boost industrial activities in the country. Reports suggest that red tape and mismanagement reign supreme in the ofUicial cadre with no interest in updating the record of the existing, closedor sick industrial

units. The developed nations keep record of everything possible to devise not only industrial policies but also to give impetus to planning and development efforts. In this age of information technology, survey of the industrial units and maintenance of record is not an uphill task as it was in a couple of decades ago.

Unavailability of updated record leads to several complications as the industrial units making good business cannot be persuaded for taxes according to the volume of their production while the closed or loss-making units are sent the tax notices in line with their previous business details.

The cottage industry of any country is considered the backbone of economy and even China

and Japan started their journey to industrial development from home industries and have now become second and the third largest economies of the world.

The small industrial units are provided every facility from Uinance to expertise in developed nations, but the departments in the country which are responsible for assisting the small industry have failed to give good performance despite heavy government budget on their disposal. However, at least management of record is the basic requirement in the modern economy and the departments responsible for the job are reeling under ofUicial rigmarole. The record of the business type, location, closed and sick units as well as unregistered units is either in-

complete or missing.

Only the units having stakes in the government funding are registered with the departments concerned and the un-documentation of the units is one of the impediments in the development of the national economy.

Reports suggest that hundreds of new industrial units of pharmaceuticals, food processing, engineering, textile, garments, carpet, plastics, electronics, chemicals, paints, steel and auto parts are being set up in Lahore, Faisalabad, Gujranwala, Sialkot, Hyderabad and Peshawar and Karachi and their documentation in the ofUicial record is important.

There are industrial units earing millions of rupees, but avoid to come into the tax net.

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Zero-rated tax regime for export sector lauded ISLAMAbAD: The business community has lauded the government’s decision to give export sector a zerorated tax regime. Islamabad Chamber of Small Traders Sunday appreciated Prime Minister Nawaz Sharif’s announcement for announcing zero-rated tax regime on sales tax for the export sector. “The decision will reduce financial burden on exporters while ending the practice of the corruption in the refund claims” Shahid Rasheed butt, Patron Islamabad Chamber of Small Traders said in a statement issued here. He said that export sector should also get relief under the head of other taxes and input costs to revive exports.

Exporters should get their refund claims amounting to Rs 200 billion while deduction of Export Development Fund (EDF) may be abandoned as it has failed to meet the objectives, he added. Textile sector did contribute around Rs 6 billion annually as EDF which was not utilized properly, he said.

karachi chamber appreciate prime Minister’s remarks against NAB he Chairman of Businessmen Group (BMG) Siraj Kassam Teli and President Karachi Chamber Younus Bashir said in a statement that Prime Minister’s remarks have increased the business community’s confidence. While appreciating Prime Minister Mian Muhammad Nawaz Sharif’s standpoint over the actions

by National Accountability Bureau (NAB) against business and industrial community, they said that it will go a long way in not only restoring local investors’ confidence but will clear the air for foreign investments as

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well. The Chairman Businessmen Group and President KCCI said that they fully support Prime Minister’s remarks as no Law Enforcement Agency including NAB, FIA, FBR or any other institution should have the right to misuse their powers to harass Industrialists or Businessmen without a solid proof. A statement issued by the Businessmen Group and office bearers of Karachi Chamber stated that such practices by NAB shattered the confidence of the entire business and industrial community, resulting in flight of capital and businesses from Pakistan which will have a severe negative impact on the economic performance of the country. Referring to some media reports in which it has been indicated that Prime Minister probably gave these remarks against NAB in response to complaints by some of the leading businessmen namely Sohail Tabba.—CB Report

Friday February 26, 2016

Chambers

Diplomats should make efforts to boost exports: LccI chief D LAHORE

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iplomats would have to take concrete and result-oriented efforts to expedite exports of the country so that Pakistan could get maximum share in the international market.

“Role of diplomats is critical for promotion of external trade as they are the people who have enough knowledge to portray economic potentials of any country to the outer world and pave way for foreign investments.” This was stated by the LCCI Senior Vice President Almas Hyder while talking to a 41-member delegation of Trade OfUicers, being posted abroad, here at the Lahore Chamber of Commerce and Industry. The LCCI Vice President Nasir Saeed and Executive Committee Members were also present on the occasion. The LCCI Senior Vice President said that foreign diplomats could play an effective role for the promotion of trade relations and they should adopt innovative strategies to cope with the emerging global challenges.

He said that the primary objec-

tive of Lahore Chamber of Commerce and Industry is to protect and promote the interests of the business community and it acts as a bridge between the government and the business community.

He said that in the developing trade scenario, it is necessary that the developing economies enhance trade amongst themselves. There is a need to prioritize South-South partnership. That can either be in the form of regional blocs or through bilateral cooperation. Pak-

istan has a speciUic importance due to its location. He said that China Pakistan Economic Corridor is going to give a jumpstart to the trade of Central Asian States in the regional context and worldwide. These land locked countries would be easily accessible to the Afro-Asian countries.

Almas Hyder said that it is necessary that the developing economies should enhance trade amongst themselves. There is a need to prioritize Afro-Asian partnership.

The LCCI Vice President Nasir

Lifting of pak trade sanctions against Iran lauded

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KARACHI

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he business community of Pakistan has appreciated the government’s decision of lifting trade sanctions against Iran after its nuclear deal with world powers.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Abdul Rauf Alam lauded the prudent decision of the government, saying it will positively enhance the bilateral economic and trade relations with Iran. He appreciated the Finance Minister, Ishaq Dar and anticipated that all economic projects with Iran will be revived. The Iran – Pakistan gas pipeline project, import of 1000 MW electricity which was agreed in 2009, opportunities of such mega projects will be revamped under new scenario, he added. He further said that the imported electricity

from Iran is much cheaper than the electricity produced by the Independent Power Producers (IPPs) and currently Pakistan is importing about 100 MW electricity which should be extended to 3000 MW. He said that a drastic decline was witnessed in trade volume between Pakistan and Iran in 2010-11 to US $ 431.765mn from US $ 1220.90 in 2009-10 and US $ 1321.59 in 2008-09 even though both countries had PTA. Rawalpindi Chamber of Commerce and Industry (RCCI) president Mian Humayun Parvez has said that lifting of sanctions on Iran would help reviving economic relationship between the two neighbouring countries in several areas of cooperation including trade, investment, technology, banking, Uinance and energy. In a statement, RCCI president said that Iran was the Uirst country which recognised Pakistan after its independence and Pakistan also was the Uirst country that

recognised Islamic Republic of Iran after revolution. He said that cotton, textile and rice were the key areas of cooperation, which can beneUit Pakistani exporters. Iran-Pakistan gas pipeline project will help Pakistan to meet its domestic and industrial need, he added. Meanwhile, Rawalpindi Chamber of Small Traders and Industries senior vice president Nadeem Sheikh said that the chamber was making all out efforts for solving the problems being faced by the traders. He, while talking to media, also appreciated the MPs and senators for forming laws for betterment of traders affiliated with small businesses and industries. He informed that a total of 350 members have been enrolled with RCSTI while small chambers and small industries have also been established at Rawalpindi, Islamabad, Peshawar, Quetta, Faisalabad, Gilgit and Mardan.

Saeed said that the primary objective of Lahore Chamber of Commerce and Industry is to protect and promote the interests of the business community and it acts as a bridge between the government and the business community.

He said that said that Africa still remains an unexplored territory from Pakistan’s standpoint.

He urged the trainee diplomats to identify tradable items, which leave a lot of room for product/market diversiUication.

Minister for weeding out hurdles in rapid industrialisation inister for Industries, Commerce & Investment Ch Muhammad Shafique has called on Federation of Pakistan Chambers of Commerce and Industry (FPCCI) regional chairman Mian Rehman Aziz and discussed various matters of mutual interest and hurdles associated with rapid industrialisation.

During the meeting, Mian Rehman said that steps should be taken to set up industries across the Punjab. He further said investment should be encouraged and the government should build environment of opportunities to invest in the country. He further said liberal and transparent policy for investors should be made.—CB Report

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Azerbaijan increases gas supply to Turkey Friday February 26, 2016

World

ANKARA: In December 2015, Azerbaijan supplied 594.34 million cubic meters of gas to Turkey versus 586.92 million cubic meters in December 2014, a report on the website of Turkey’s Energy Market Regulatory Authority (EMRA) said Feb. 23. In total, Azerbaijan supplied 6.17 billion cubic meters of gas to Turkey in 2015 versus 6.07 billion cubic meters in 2014.

In December 2015, Turkey imported 5.34 billion cubic meters of gas, some 4.29 billion of which were imported via pipelines, other 1.05 billion cubic meters accounted for import of liquefied natural gas (LNG), according to the report.

Azerbaijan’s share in Turkey’s total gas import amounted to 11.13 percent in 2015, said the report.

canada police seize meth worth over $14,500 WINDSOR

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indsor Police arrested two people from Windsor with intent to smuggle more than $14,500 worth of methamphetamine.

Police seized a total of 72.6 grams of methamphetamine after responding to a break and enter call at a motel in the 3600 block of Sandwich Street. The caller said a woman was using a window to get into a room. OfUicers found a man and a woman inside that room, where they saw several syringes, a digital scale, a glass pipe and a baggie containing 7 grams of methamphetamine. After getting a warrant to search the room police seized another 65.6 grams of methamphetamine and packing materials.

They were able to link the room another man. A 29-year old man

uS customs seizes meth worth over $40,000 S Customs and Border Protection officers working at Dallas/Fort Worth International Airport (DFW) arrested a man after finding more CBP officers seized more than 2 pounds of methamphetamine in a passengers luggagethan 2 pounds of methamphetamine valued at more than $40,000. CBP officers discovered the illegal narcotics concealed in the luggage of an international traveler.

Selvin S. Sandoval, a U.S. citizen, was traveling from Guatemala City, Guatemala to Dallas when CBP officers selected him for a secondary examination. During the examination of his luggage, officers discovered a clear bag containing a white crystal-like substance among packages of food items. The substance tested positive for methamphetamine. “This seizure illustrates our commitment to enforce hundreds of US.—CB Report

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from Windsor is charged with trafUicking and breach of probation.

A 27-year old woman from Windsor is charged with trafUicking.

A 46-year old Windsor man is to be summonsed in relation to trafUicking. None of the charges have been proven in court.

Meanwhile, Customs ofUicers discovered 4.8 kilograms of heroin hidden in luggage on February 14th at Halifax StanUield International Airport. A 45-year-old man has been turned over to the RCMP after ofUicers with the Canada Border Services Agency seized a large quantity of heroin at the Halifax StanUield International Airport. The CBSA says ofUicers were conducting a routine examination at the airport last Sunday when they discovered the drugs. “We use presumptive Uield tests, which includes technology called an ion scan, or an actual test called a narcotics identiUication kit, that allows us to get a positive for the substance,” explains Colin Murchison, chief of operations of CBSA at the airport.

Bangladeshi nabbed with rs 3.5m worth of heroin at BIA DHAKA

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28-year-old Bangladeshi national was arrested on February 21 at the Bandaranaike International Airport in Katunayake with a haul of heroin worth Rs 3.5 million.

The Police Narcotic Unit along with Customs ofUicials had found three kilograms and 400 grams of heroin in the possession of the suspect who was attempting to smuggle the drug into the country, the Police Media Unit informed. The suspect had arrived from Dhaka, Bangladesh with the heroin stored in his hand-luggage.

Meanwhile, Bangladesh’s exports earnings from the plastic sector dropped 14% to $51.73m in the Uirst seven months of this Uiscal year.

Drastic fall in the raw materials’

New customs facilities at Dubai International Airport

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ubai Customs has inaugurated new Customs expansions at Dubai International Airport.

The Uirst-hand facilities include CCTV Operation Centers, Baggage Handling Systems (BHS) Customs Command and Control Centers at both Dubai International’s passenger terminals T1 and T3, as well as a Smart Customs Warehouse at T1 alongside high-end rest amenities for Customs staff.

HE Sultan bin Sulayem, Chairman of DP World and Chairman of Ports,

Customs, Free Zone Corporation ( PCFC ), cut the ribbon to declare open the brand-new Customs developments. The ofUicial inauguration took place in presence of HE Ahmed Mahboob Musabih, Dubai Customs Director, HE Mohammed Al Hai, Senior Vice Chairman of Dubai Airports , Major General Pilot Ahmed bin Thani, Deputy Commander-inChief for Ports Affairs at Dubai Police , Major General Jamal Belhoul, Dubai Police General HQs, Brigadier Ali Atiq Bin Lahej.—CB Report

prices has been blamed for bleak performance by the country’s emerging industry.

According to the Export Promotion Bureau (EPB) latest data, in July-January period of FY2015-16, the country earned $51.73m from the plastic sector, which was over 14% less compared to $60.20m a

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year ago.

The Uigure is 22.27% less against the target of $66.55m set for the period. The sector people said the decrease of prices of raw materials was triggered by the economic slowdown in the export destination countries, especially in the European Union countries.

Australia’s orica re-launches Minova ustralian explosives maker Orica (ASX:ORI) said Friday it has completed the restructuring of its Minova group as a stand-alone business unit dedicated to ground control solutions for the mining, civil/tunnelling, geotechnical and construction industries. In the past few years, the business became an ongoing nightmare for Orica as the division failed to deliver an adequate return on capital since it was acquired in 2006. The situation became more difUicult in the past two years has Orica began dealing with plunging commodity prices and an oversupplied ammonium nitrate market. “With a

new, dedicated global management team, [Minova] will once again do business globally under the well known and highly regarded name and brand, with a newly updated trademark and logo,” Orica said in a statement. Minova has a long history of technological contributions to mining roof support and ventilation control as well as novel chemical and mechanical products used in civil construction and repair. The new Minova will focus on ground support products including resins and mechanical stabilising products, chemical and cementitious grouts and adhesives, and ventilation control.—CB Report

Just 3% heroin in Ireland is seized, says uN

A DUBLIN

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n estimated 97% of heroin being trafUicked into Ireland is getting through undetected, according to a major report by the United Nations. The UN OfUice on Drugs and Crime estimates that 958kg of pure heroin is imported

into the country, on average, every year. It said only 27.5kg (3%), on average, is seized, that 931kg is consumed and heroin gangs are earning an estimated €600m a year from the trade. A leading Irish expert said the research had “profound implications” for drug laws, but didn’t think the Uigures were quite as high as stated. Johnny Connolly said Ireland’s seizure rate was closer to 4%-

5%, that around 550kg-660kg of pure heroin was consumed here and that proUit levels were about half the UN estimate of €600m. Senior gardaí said there was there was “no way” of knowing how much heroin was coming in or what percentage they seized — and completely rejected the proUit estimates. The study, ‘Drug Money: The Illicit Proceeds of Opiates trafUicked on the Balkan Route’, is one of

the Uirst of its type. Examining the heroin trade using statistics between 2009 and 2012, its “best estimate” of Ireland’s interception rate was 2.9% — compared to an average of 5% for western and central Europe.

It said the Netherlands was the main trafUicking source of heroin for Ireland, accounting for 464kg, followed

by Belgium (133kg) and a range of other countries (362kg).

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Turkish investors inject $400m into Rwanda ANKARA: Investments by Turkey in Rwanda total $400 million and over 20 investment projects are already operational, just in the past three years. Rwanda received $3.1 billion in local and foreign investment inflows over the period, with Turkey contributing 13 per cent of that amount. The biggest investment project from Turkey is a $335 million peat energy project by Hakan Mining, which is expected to produce up to 100MW. Other investments are in schools, hotels, agricultural processing and construction. “Over the past few years, we have seen a surge in Turkish investments in the country. We are committed to boosting trade relations between our two countries.

oil barges pile up outside ArA ports as storage fills ozens of barges carrying refined oil products are being held outside major northwest European ports as storage tanks are saturated, traders said. At least 60 tanker barges were being delayed outside the ports of Amsterdam-Rotterdam-Antwerp, with discharge and loading expected to be delayed by as much as two weeks in some cases, the traders said.

“It’s logistical issues – full tanks and more imports,” one trader said of the barge delays. This is the latest indication of the increasing logistical pressure on the oil market from the supply glut. Lower seasonal demand for gasoline from the United States, Asia and West Africa and large imports of diesel have led to a significant oil product stocks build in Europe’s AmsterdamRotterdam-Antwerp (ARA) in recent months. Traders have already opted to store diesel and gasoline on tankers off the coasts of Europe as tanks brim.

There is now just 10 percent of operational storage capacity left in ARA

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gasoil tanks, according to industry monitor Genscape, leaving little space for those looking to store it on land.

Around 450,000 tonnes of diesel are stored on water while around 10 tankers totalling some 600,000 tonnes have been booked in recent days to store gasoline, according to traders and shipping data. “Storage is pretty full … barges need to wait for vessels to come in and make some room,” a barge broker said. Congestion is particularly bad outside the port of Amsterdam, with some reports that the port has barred barges from entry. The ports of Amsterdam, Rotterdam and Antwerp did not reply to requests for comment. There were indications that some traders were also using barges as floating storage, albeit for shorter periods of time.—CB Report

Ports & Shipping

port Metro Vancouver sees huge decline in coal exports to china

OTTAWA

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ort Metro Vancouver didn’t ship a single lump of thermal coal to China in 2015.

The port authority released its 2015 statistics overview on Thursday, offering a detailed glimpse and what moves through Canada’s busiest terminals.

Overall, Port Metro Vancouver handled 138 million tonnes of cargo last year, down one per cent from 2014. Robin Silvester, president and

CEO of Port Metro Vancouver, told Metro the minor decrease is impressive considering the economic climate. For example, the movement of thermal coal dropped 21 per cent to 9,150,273 metric tonnes.

Thermal coal exports to China, which has been aggressively transitioning to cleaner energy, from Port Metro Vancouver terminals disappeared completely in 2015. None was shipped to China last year, compared to 1,313,954 metric tonnes in 2014 and 1,736,083 metric tonnes the year before. More than Uive million metric tonnes of metallurgical coal was still shipped to China through Port Metro Vancouver, but even that was down

29 per cent. Thermal coal exports to South Korea and Japan also substantially decreased by 17 and 27 per cent, respectively. A 33 per cent drop in crude petroleum exports also point to economic troubles in Alberta, Silvester said. The decrease in some resource exports was offset but record movement of containers, potash and grain through Port Metro Vancouver.

“We’re pleased given the difUicult global backdrop,” said Silvester. “Certainly we’re in pretty good shape [for growth].” The port is seizing the increased container trafUic (up Uive per cent to 3.054 million containers) by planning to signiUicantly ramp up its capacity in the coming years.

Friday February 26, 2016

Japan iphone shipments dip 10.6% in 2015 hipments of Apple Inc.’s iPhones in Japan fell 10.6 percent in 2015 from the previous year to 14.73 million units, marking the first drop since they went on sale in the country in 2008, a private research company said Wednesday.

The decline was attributable to sluggish sales of new iPhone 6s and iPhone 6s Plus smartphones that went on sale last fall, according to MM Research Institute Ltd. While Apple still dominates the Japanese mobile phone market, its share was trimmed to 41.2 percent from 43.1 percent in 2014. Sony came second with a 13.9 percent market share, followed by Sharp at 11.9 percent.

Since the communications ministry is asking mobile carriers to review drastic discount policies, MM Research Institute projects iPhone’s shipments and market share, which have benefited from great discounts when users switch from another carrier’s smartphone, will decrease further.

While Apple saw a decline in iPhone sales, sales of smartphones powered

by Android operating systems jumped 15.0 percent to 12.85 million units in 2015 from the previous year.

Overall shipments of smartphones totaled around 27.60 million units last year, down 0.4 percent from 2014.

Shipments of conventional mobile phones plunged 22.6 percent to 8.19 million units in 2015.—CB Report

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enbridge sees rise in profit, record oil shipments

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CALGARY

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nbridge Inc. said proUit rose in the fourth quarter as record oil shipments on its main pipeline system shielded the country’s largest pipeline company from the collapse in prices.

Net income was C$378 million ($274 million), or 44 cents a share, compared with C$88 million, or 10 cents, a year earlier, the Calgarybased company said Friday in a

statement. Excluding one-time items, per-share proUit exceeded the 53-cent average of 13 analysts’ estimates compiled by Bloomberg.

While oil and gas producers have been reeling from the collapse of energy prices, Uiring workers and cutting costs, pipeline fees have provided a steadier source of income.

Lines such as Enbridge’s Flanagan South and Seaway Twin have expanded Canadian crude shipments to the U.S. Gulf Coast, and the company also plans to expand in Colombia and Australia.

“Despite one of the most dramatic downturns in the energy sector in decades, we delivered very strong adjusted earnings and cash flow growth for our shareholders that were in line with our expectations,” CEO Al Monaco said in the statement. “Our fourth quarter actually came in a bit stronger than we anticipated late last year due to stronger performance from the Canadian liquids business in December and lower overall operating and administrative costs.”

Enbridge is focusing on expand-

ing “low-cost, incremental” projects like twinning existing pipelines to provide producers with new transportation capacity as they struggle with low crude prices, Monaco told investors in October. The company’s C$7.5 billion Line 3 replacement is the largest project. The completion of that project and the Sandpiper pipeline project in Minnesota may be delayed until early 2019 after the state required the company was required to complete an environmental impact statement.

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Faisalabad Customs reshuffles five employees FAISALAbAD: Model Customs Collectorate Deputy Collector (Headquarters) Falik Shair has ordered the reshuffling of four sepoys, and one havaldar with immediate effect. According to the details, Havaldar Muhammad Ashraf has been posted from GPO to Faisalabad Customs Complex, while Sepoys Ziaullah Cheema and Liaqat Ali Wasli have been reshuffled from GPO to Faisalabad Customs Complex also.

Furthermore, Sepoys Muhammad Hayat and Saifullah have been assigned task at Faisalabad Dry Port from Faisalabad GPO.

Friday, February 26, 2016

CUSTOMS BULLETIN

customs Intelligence Dg Imtiaz to meet transporters to resolve their issues ISLAMABAD M FAIZAN

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ederal Board of Revenue (FBR) Chairman Nisar Mohammad has directed Director Customs Intelligence and Investigation Imtiaz Ahmad Khan to hold meeting with ofUice-bearers of the United Goods Transporters Alliance and resolve their issues on priority basis. Sources informed Customs Today that the FBR chairman instructed Director Imtiaz Ali Khan to make sure the implementation of accord which was signed between the FBR and transporters associations. It is necessary to mention here that a delegation of transporters called on Mohammad and complained him that the Uield formations are ignoring the directions of the FBR. Sources said that transporters main issues are linked with Customs Intelligence so after taking personal interest in this case the FBR chairman directed Imtiaz Ahmad Khan to resolve the issues of transporters.

Meanwhile, A division bench of Customs Appellate Tribunal BenchII will hear Uive tax references on Wednesday involving Directorate

General of Intelligence and Investigation (DG I&I) and Model Collectorate of Customs, Islamabad. Customs Appellate Tribunal Division Bench comprising Member Techni-

cal, Muhammad Maqsood ul Hassan and Member Technical, Muhammad Nasir Khan will hear the references.

M/S Amson Vaccines, Jamshed Alam and Adil Khan had Uiled references

against MCC, Islamabad. M/s AMSON Vaccines had Uiled petition challenging customs department orders panelizing it for paying short-duty in head of different imported items.

Appellants, Jamshed Alam and Adil Khan, had made Model customs collectorate, Islamabad, respondent in their petitions challenging its decision before the tribunal.

Senate body lauds NAB performance in modaraba scam probe ISLAMABAD

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he Senate Standing Committee on Finance and Revenue on Wednesday lauded the National Accountability Bureau (NAB) for showing remarkable performance in investigating into the modaraba scam.

The Finance Committee also directed NAB to take all necessary measures to provide relief to the

victims and shareholders in modaraba companies.

“Modaraba is one of the prime modes of Islamic Uinancial system and the process of Islamization of the economy started in 1977 in the country,” Director General NAB told the committee about the background of the Modaraba business in the country.

He said that government in the light of recommendations of Council of Islamic Ideology (CII) introduced certain changes in the Banking Companies Ordinance and promulgated the Modaraba Companies and Modaraba (Floatation

and Control) Ordinance, 1980 to provide a legal framework for Islamic Uinancial system. However, taking beneUit of the legal cover a number of companies got involved in the forgery like activities He further said that around 76 cases of fraud committed in the name of modaraba companies had been registered so far and after thorough investigation it was disclosed that majority of companies were not registered in the name of modaraba companies with the Security and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP) and other regula-

tors. He further said that cases against 25 companies were in progress as over Rs 24 billion had been plundered from 30400 account holders by the so called Modaraba Companies in this scam so far. “NAB has detained big Uish and a few accused are ready to return the money to the account holders, however, NAB has recovered over Rs 700 million and conUiscated assets worth of Rs 13 billion” he observed. He said that major portion of money was transacted through banking channels from the abroad and in the light of Uindings of the investigation prop-

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erties, plazas and houses owned by the accused companies had been taken into custody. At this the committee directed the NAB to ensure earliest possible return of the plundered money to the account holders to provide them relief.

To a question raised by Senator Kamil Ali Agha, DG NAB told the committee that 76% assets of Taj Company in Lahore had been returned to origin shareholders and Taj Company was now dealing in business with a changed name.

Then the committee also recommended the Shifa Medcos scam to NAB for investigation.