Tuesday, 27 February 2018

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Karachi, Tue February 27, 2018

ISLAMABAD

M ARSHAD

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he Federal Board of Revenue (FBR) has forwarded a list of the vacant posts of customs inspectors in the Customs Collectorate, Quetta, and other formations to Federal Public Service Commission (FPSC) for direct recruitment.

The vacant posts have been deeply affecting the performance of the department in terms of revenue collection over the years and undermining

efforts of the FBR to meet the revenue collection targets. “At least 61 posts of inspectors were vacant at MCC Quetta in the last Sive years against direct appointment quota out of which eight were Silled in through FPSC in 2017, ” sources at the FBR told Customs Today.

The sources said that MCC, Quetta conducted departmental examination for its employees in January 2012 for consideration to Sill up the vacancies of inspector (Customs) meant for departmental promotion quota. “Only 67 employees passed the examination; out of which eleven candidates on top of merit

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list were promoted by the Collectorate. The remaining persons could not be promoted due to non-availability of more vacancies in the promotion quota” the sources maintained In this connection, the source said that the seniority of customs inspectors (BS-16) was maintained on all Pakistan basis. According to recruitment rules, the quota reserved for promotion and direct recruitment to the post of Inspector Customs is 50%: 50%. The sources said that the overall sanctioned posts of Customs Inspector are 1672; therefore maximum 836 posts at the ratio of 50% fall in promotion quota.

Customs confiscates 3,363 smuggled vehicles in 4 years

Adjudication-II recovers Rs 6 million from M/s Rana & Sons Karachi

Customs I&I impounds NDP crane from Badami Bagh

DG Valuation revises customs values of sauces, mayonnaise, mustard

Hyderabad ASO confiscates NDP auto parts worth Rs1.11 million

FBR has confiscated 3,363 non-customs paid or smuggled vehicles in Karachi | See pAge 02 |

Adjudication-II has shown outstanding performance by taking actions against tax | See pAge 03 |

Customs I&I team intercepted a NDP crane near truck adda located at Badami Bagh | See pAge 04 |

DG Valuation has revised the values of sauces/salad dressing / mayonnaise | See pAge 09 |

ASO has confiscated foreign origin NDP auto parts old and used items | See pAge 16 |

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Customs court to declare Ayyan absconder Tuesday, February 27, 2018

Islamabad

ISLAMABAD: The customs court has given gave an ultimate warning to Ayyan Ali stating that the model will be declared an absconder if she fails to appear before the court in the currency smuggling case.

The proceedings for the case in Rawalpindi’s customs court began despite Ayyan Ali’s absence.

The court upheld her arrest warrant but made it clear that in case she does not appear in the next hearing as well, she will be declared an absconder.

customs confiscates 3,363 smuggled vehicles in 4 years

ISLAMABAD

ISLAMABAD

nAeeM uLLAH tARiQ

tARiQ DeRYA

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ustoms Appellate Tribunal Member, Ziauddin Wazir has remanded back M/s Chief Autos’s customs matter to the department’s adjudication for rehearing. The bench had reserved a decision after hearing concluding arguments from sides during the last hearing. The tribunal was hearing cases filed against Collectorate of Customs. The bench dated in office the hearing of another customs case filed by M/s Fazal Razaq. M/s Fazal Razzaq had contested a decision announced by Directorate General of Intelligence and Investigation, Islamabad. In recent weeks Ziauddin Wazir had also heard a number of along with Justice (r) Malik Manzoor Hussain in recent weeks. The bench had heard M/s National Highway Authority’s case which had challenged a decision announced by MCC’s collector customs before the tribunal. The bench had reserved decisions on M/s Waseem Autos and M/s Nisar Traders cases. M/s Waseem Autos and M/s Nisar Traders had filed cases against Model Collectorate of Customs and Directorate General of Intelligence and Investigation, Islamabad.

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ederal Board of Revenue (FBR) has conSiscated 3,363 non-customs paid or smuggled vehicles in Karachi, Peshawar and Quetta during last four years.

It was revealed during a meeting of the Senate Standing Committee on Finance. A Customs ofSicial briefed the committee that during last four years 3,363 vehicles were conSiscated in Quetta, Peshawar and Karachi by the Custom authorities, out of which around 3,100 vehicles had been disposed of. Out of the conSiscated vehicles, 2150 vehicles were seized in Quetta, 1026 from Peshawar and 187 in Karachi.

It was informed that the FBR ensures the process of auction of the vehicles very quick and transparent.

The meeting was held here under the chairmanship of Senator Saleem H Mandviwala, while it was attended by Senators Mohsin Aziz, Kamil Ali Agha, Nasreen Jalil, Ilyah Bilour, and ofSicials from the concerned departments. The committee also recommended the government for clearing 10,600 imported vehicles stuck up at the Karachi Port with immediate effect.

Mandviwalla said he was receiving complaints that the FBR’s Customs ofSicials were not clearing imported vehicles and now the number of stuck up vehicles had

tribunal remanded back reference filed by M/s chief Autos

gone up to 10,600. Zahid Kokhar told the committee that Ministry of Commerce brought changes through notiSication binding that importer of vehicle will have to open a foreign currency account in the country of origin that had created stumbling block as all stuck up vehicle could not be cleared in the presence of such conditions. The FBR took up the issue with the Ministry of Commerce, which decided to clear vehicles where the bill of

entry Siled up to Feb 6, 2018.

However, the Economic Coordination Committee (ECC) of the Cabinet endorsed the FBR version and Ministry of Commerce was asked to withdraw the notiSication. The Ministry of Commerce, Member Customs said, has not yet withdrawn its notiSication arguing that they were awaiting endorsement of the Federal Cabinet. “We expect that the federal cabinet will grant its approval today as its going to meet

with PM in the chair,” he added. Senator Kamil Ali Agha said that it was high-handedness demonstrated by the Ministry of Commerce in order to please the inSluential car manufacturers in Pakistan as they wanted to curtail imports of cars. The committee members were of the view that the local manufacturers were getting ‘own’ of Rs 400,000 on immediate delivery otherwise they were giving time of delivery of car of over six months.

iHc relisted appeal filed against customs Appellate tribunal

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ISLAMABAD

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ustice Athar Minallah and Justice Miangul Hassan Aurangzeb of Islamabad High Court relisted Malik Nasri Khan’s customs appeal Siled against Custom Appellate Tribunal, Islamabad.

IHC division bench directed staff to relist the appeal to be heard along with other cases of similar nature. In the meantime the bench also dated

in ofSice hearing on another matter submitted by M/s Mobizone Pakistan Private Limited.

M/s Mobizone Pakistan Private Limited had challenged a recovery claim made by Sield ofSice of Federal Board of Revenue (FBR).

M/s Mobizone Pakistan Private Limited had Siled the reference in which the company had challenged a show cause notice issued by the Large Taxpayers Unit, Islamabad.

M/s Mobizone Pakistan Private Limited had prayed the court that

FBR ofSice had issued a recovery notice to the company which did not hold lawful grounds. The appellant had prayed the court to declare the

act as illegal and without any lawful authority and an interim stay may be granted against recovery proceedings. M/s Mobizone Pakistan Private Limited submitted before the court that the impugned order was issued under mala-Side intentions and had no legal standing or authority and the court may decide on relief which it deemed appropriate in this regard. It also stated that due legal course was not followed by the department in issuing the order. M/s Mobizone Pakistan Private Limited

had also prayed the court to decide the case early as the appellant had to bear Sinancial complications after the case. M/s Mobizone Pakistan Private Limited had also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication did not addressed grievances of the appellant. ATIR, Federal Board of Revenue (FBR), ofSicers of LTU including Commissioner Inland Revenue, and others were made respondent in the tax reference.

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PCA unearths tax and duty evasion of Rs6.26m committed by M/s Zehri & Sons KARACHI: The Directorate of Customs Post Clearance Audit has detected an evasion of duties and taxes of Rs6.26million committed by M/s Zehri & Sons, it is learnt.

Sources told Customs Today that M/s Zehri & Sons imported a consignment of various kinds of milk powder and got it cleared from the Pakistan International Container Terminal Karachi vide GDs on August 7, 2017 by paying the customs duty at 10 percent after claiming the beneďŹ ts of the SRO 564/2007.

SHc seeks comments on petition filed by M/s wan Hai Lines

Tuesday February 27, 2018

Karachi

Adjudication-ii recovers Rs 6 million from M/s Rana & Sons karachi

KARACHI

M B RAnA

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he Sindh High Court (SHC) has directed parties to complete their arguments on a constitutional petition filed by M/s Wan Hai Lines Limited seeking release of its 194 containers which are laying at Karachi Port since 2011. A twomember bench of the SHC heard the matter. Earlier, counsel for the petitioner stated that company belongs to Taiwan Republic of China and engaged in the lawful business of import and export. The counsel argued that due to Salala Check Post an embargo which continued till July 2012, as a result 347 containers of the petitioner stuck up at Karachi Port.

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SHc allows release of Asphalt paver machines KARACHI

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customs appellate bench of Sindh High Court (SHC) comprising Justice Munib Akhtar and Justice Mrs Ashraf Jahan allowing an interim arrangement ordered release of Asphaltr Paver machines.

The bench earlier heard petitions filed by Sachal Engineering Works, Zarghon Enterprises, Ali Nawaz & Hussain Engineering Company and Eastern Construction Company through counsel Ms Dil Khurram Shaheen advocate. The counsel submitted that PCT heading was main contentious issue as the Pakistan Customs assessed the imported machinery under a PCT heading which renders the import restricted. The counsel also questioned the applicability of a clarification sought by the respondent custom oďŹƒcials from Ministry of Commerce.

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KARACHI

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ollector Customs Adjudication-II Tahir Qureshi has shown outstanding performance by taking actions against tax defaulters during the month of January and this procedure is still on during the month of February.

Source told Customs Today that the Customs Adjudication-II served a Sinal notice on a defaulter company named M/s JSM Enterprises and recovered Rs 6 million from M/s Rana and Sons Karachi.

M/s JSM Enterprises was involved in tax evasion. The company imported different types of roll of black rexine on November 14, 2017 and used the wrong PCT heading.

After a careful investigation, the Customs Adjudication-II issued a Sinal notice to the company and cleared the outstanding amount of Rs 8.14 million.

Source said that another company M/s Rana and Sons got cleared a consignment of imported instant powder milk on October 16,2017 and evaded tax amount of Rs 6 million. After the investigation, Customs Adjudication-II served a show cause notice on the company on November 17, but it failed to clear the outstanding tax amount. Collector Customs Adjudication-II issued a Sinal notice to the company on December 28, 2017. But company took time to submit amount. After receiving the

notice, the company deposited Rs 6 million in favor of the Customs department on 7th February, 2017.

Meanwhile, The Customs Adjudication-II demonstrated an excellent performance by issuing many notices to defaulters during the month of January 2018.

Sources told Customs Today that Customs Adjudication-II served a Sinal notice on a defaulter company named M/s M K Importers and recovered Rs8million from M/s

Source said that another company M/s Rana and Sons got cleared a consignment of imported instant powder milk on october 16,2017 and evaded tax amount of Rs 6 million

pcA detects tax evasion of Rs 8.50m by waseem computers

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KARACHI

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he Directorate of Customs Post Clearance Audit showed outstanding performance during the month of January and detected 12 cases. Source told Customs Today that Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 8.50 million allegedly by M/s Waseem Computers.

Sources said that M/s Waseem

Computers, Karachi, imported a consignment of various type of laptops, PCs and different parts of computers and got the same cleared from the PICT vide GDs on November 23, 2017 by paying customs duty at 8 percent after claiming the beneSits of the SRO 567/2007. However, the subject items are correctly classiSiable under the PCT 2408.2147 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classiSication, the company

evaded/short-paid Rs8.50 million.

The consignment was cleared through Examiner Wajid Khan.

Sources told that the importer violated the provisions of Section 78 (5) of the Customs Act-1969, Section 18 read with Section 89 of the Sales Tax Act-1990 and Section 194 of Income Tax Ordinance 2001 punishable under clauses (257) and 125 of Section 639(3) of the Customs Act-1969, Section 89 of the Sales Tax Act-1990 and Section 92 & 125 of Income Tax Ordinance.

Ramees Paint Karachi.

M/s M K Importers was allegedly involved in tax evasion. The company imported mobile accessories and used systems including laptops and got them examined on October 23, 2017 by Waheed Khan and used the wrong PCT heading.

After a careful investigation, the Customs Adjudication-II issued a Sinal notice to the company on 6th of February and cleared the arrears of Rs3.25 million.

Rupee remains firm against greenback he Pakistani rupee remained unchanged against the US currency both in open market and interbank. As per the local money market, the dollar remained firm both in open market and interbank for selling at 111.90 and 110.50 respectively. The dollar closed dull in the open currency market by 15 paisas on insignificant demand.

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FIA launches crackdown against human traffickers Tuesday February 27, 2018

Lahore

LAHORE: The Federal Investigation Agency (FIA) launched a crackdown against human traffickers and arrested two of them and three passengers.

FIA Deputy Director Mufakhir Adeel told that FIA team raided the Sialkot airport and arrested three passengers who were flying abroad through illegal documents.

The accused Saeedur Rehman, Shabbir Hussain and Nasrullah told that they had paid money to agents for going to Italy through the route of Dubai and Libya. Meanwhile, the FIA teams have arrested two human traffickers M Owais and Riasat Ali from Sialkot and Gujrat.

customs, excise customs i&i impounds start crackdown on nDp crane from Badami Bagh non-customs paid vehicles LAHORE

LAHORE

M iMRAn MeHAR

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he Customs, Excise and Taxation Department of Punjab and Lahore police have started joint crackdown against all kinds of defaulter vehicles specially in Lahore and nearby areas.

Sources told Customs Today that the Customs Intelligence has started strict crackdown against defaulter and non-customs paid vehicles. The Punjab police and The Excise Department have also joined the operation and setup special checkpoints at different points of the city.

The Punjab police and The Excise Department have also joined the operation and setup

punjab industry gets gas at high cost he All Pakistan Textile Mills Association (APTMA) has said that the industry in Punjab was presently being charged Rs1250/MMBTU for gas as compared to gas supply to the industry in other provinces at Rs 600/MMBTU. Similarly, electricity in Punjab was being provided to the textile exporting industry along with surcharges of Rs.3.60/KWH [Tariff Rationalization (TR) and Financial Cost (FC)]. The textile industry in Punjab is saddled with the burden of non-recovery of bills and electricity theft of others, a factor of inefficiency that cannot be passed on to the international buyer. This disparity is unjust and unfair for Punjab-based textile industry to sustain. Textile industry associations have repeatedly represented this issue to the governments both at the federal and provincial levels but to no avail. –CB Report

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special checkpoints at different points of the city.

On the other hand, Provincial Minister for Excise and Taxation Mujtaba Shuja-ur-Rehman has said that the provincial government is going to start a massive crackdown against non-customs paid cars. He said the Excise Department will launch the crackdown with the help of Customs Department to ensure the transparency and boosting the revenue Sigures of both the departments.

“There is a dire need to pay attention on to the provincial taxes but unfortunately this subject has not received any attention,” he said.

Mujtaba claimed that the campaign of delivering number plates to the people at their homes has achieved its 70 percent target. “The provincial government has taken an initiative to provide number plates to owners on the spot,” he added.

M HAYAt

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irectorate of Customs Intelligence and Investigation (I&I) team intercepted a non-customs paid crane near truck adda located at Badami Bagh. Sources told Customs Today that during routine checking of vehicle customs team intercepted a crane bearing registration no: LEI4803. The driver of the crane failed to provide any relevant legal documents regarding possession of crane, while the crane was being used to deliver auto parts. Sources told that crane belonged to a trader of Misri Shah who was later identiSied as Zain Butt. The market value of seized crane is Rs2.5 million. The customs team which impounded the crane includes Intelligence OfSicer ZulSiqar Ali Dogar, Nadeem Ah-

court approves physical remand of suspect in mobile smuggling case

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he Special Court of Customs Taxation and Anti-Smuggling has approved a two-day physical remand of a suspect who was arrested for trying to smuggle mobile phones accessories and other items.

According to details, Muhammad Safdar was arrested by the customs authorities from Multan International Airport. The Customs airport authorities recovered 300 non-custom paid mobile phones that he was trying to smuggle by hiding in his luggage. The worth of the recovered

items is more than Rs 1.5 million in local market. The accused has caused a huge loss to the national kitty in the wake of duty and taxes.

Customs investigation team presented him before the customs court for getting his physical remand to investigate more on the issue that was approved by the court. Customs judge Tahir Sabir has approved his remand for two days. After completion of the remand customs team will produce him again before the court for further action. –CB Report

san, Sohail Murtaza, and Fida Hussain. It is necessary to mention here that Director Customs Intelligence and Investigation Rubab Sikandar directed all anti smuggling squads

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to adopt zero tolerance policy towards smuggling. She said that anyone who found involved in smuggling should be dealt with iron hands.

ASo seizes nDp goods worth Rs4.5m ollectorate of Customs Preventive Anti Smuggling Organization during different anti smuggling in the city seized huge quantity of non customs paid goods worth Rs4.5 million. Sources told Customs Today that Collector Customs Preventive Faiz Ahmad received credible information about some smuggling attempts. He immediately constituted a customs team under the supervision of Superintendent Saeed Nasir which also includes Isnpector Gulzar Bhatti, Muratib Mushtaq, Saeed Randhawa, Waheed Bhatti, Sajjad

Bukhari and Abdul Rehman Butt.

The team conducted various anti smuggling operations in the city and recovered non customs paid mobile phones, air conditioners, polyester fabric and mobile accessories. Customs Preventive team seized all the goods and registered cases against owners of these goods. It is necessary to mention here that Collector Faiz Ahmad adopted a comprehensive strategy to curb smuggling attempts in the region. Due to this policy there is marginable decrease is being witnessed in the smuggling attempts in the region. –CB Report

phone companies depositing wHt on weekly basis

M LAHORE

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obile phone companies are depositing withholding tax to national exchequer on weekly basis, Minister of State for Finance, Revenue and Economic Affairs Rana Muhammad Afzal Khan said. He said that the cellu-

lar/mobile phone companies (Telcos) are collecting withholding taxes from their subscribers, and depositing the same on weekly basis in the National Exchequer.

Informing the Senate, he said that the government is conducting regular audits of cellular companies, and if any discrepancy is detected or noticed, action under various tax statutes is taken.

Moreover, the minister said that considering the challenge of examination of massive volume of mobile phone subscribers’ transactions are being generated by each Telco running into millions on daily basis.

Replying to a question, the minister said that presently 34 public and private sector banks are operating in the country. He

further informed that 22.209 million PLS and 26.106 million Current Accounts are being maintained by the commercial banks as of 30th June, 2017 in the country. Muslim Commercial Bank (MCB), Islamic Bank and Bank of China-Pakistan were granted license to operate from 1206¬2014 and 11-05-2017 respectively, he added.

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www.customsbulletin.com ll the customs stations working under the jurisdiction of the MCC Islamabad collected Rs40million additional Customs Duty (CD) during the Sirst three weeks of February FY17-18 against a revenue collection during the same period of corresponding FY16-17.

This was stated by Dr. Zulfikar Ali Chaudhry, Collector MCC Islamabad, while talking to Customs Today in an exclusive interview on Saturday. He said he has instructed all the stations and sections to make all possible efforts to meet the assigned revenue targets for the month of February FY17-18. He further said that, during first three weeks of February FY17-18, all the stations, comprising Islamabad Dry port (IDP), Air Freight Unit (AFU), Unaccompanied Baggage (UAB), Accompanied Baggage (AB), International Mail Office (IMO), Rebate Refund Section working under the umbrella of MCC Islamabad, showed satisfactory performance under the head of CD against the revenue collection

Tuesday, February 27, 2018

during the same previous FY16-17.

Dr. ZulSikar told CT that, during Sirst three weeks of February FY17-18, all the customs stations earned Rs356million against a revenue collection of Rs316million under the same head during corresponding period of FY16-17. The Customs Air Freight Unit generated Rs183.35million as CD against the collection of Rs109million during the same previous period of FY16-17 whereas IDP did Rs180 million against the revenue collection of Rs209million of CD for the same above said corresponding period of FY16-17.

During above said period, the Car Section of the MCC Islamabad got nil revenue during three weeks of February Fy17-18 while it collected the same during previous period. He added that the UAB received Rs0.40million revenue during three weeks of February FY17-18 against the revenue collection of Rs0.37million under the head of CD during the same corresponding period of FY16-17.

He said Rs1.74million was generated during above period of FY17-18 whereas it did Rs2.07million of revenue of CD against the revenue collection during the same previous

period. The IMO collected Rs0.60million under the head of CD against the revenue collection of the same period of corresponding FY16-17. The Collector MCC Islamabad informed CT that, during the three weeks of FebruaryFY17-18, the Rebate Refund Section paid Rs15.99million of refunds of CD to the exporters while it paid off Rs05.00million of revenue during the same period of FY16-17 as CD. The Collector MCC Islamabad informed Customs Today about his civil service details.

He notified the correspondent that he joined MCC Islamabad during January FY17-18 while, before joining MCCI, he was on training at the National Defense University (NDU) Islamabad. He added that, before that, he served as Collector Faisalabad.

Telling more about him, he said he also served as Collector Lahore and Collector Sialkot. He further said he worked as Director Intelligence and Interrogation (I&I) Rawalpindi too. Regarding his educational details, he explained that he did his MBBS and also got a masters degree in Public Policy from Australia as well as was awarded a masters degree in Political Science.

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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

corruption in provincial departments

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he Auditor General of Pakistan has detected irregularities of around Rs 300 billion in financial record of the Punjab government for the year 2015-16, smashing all the hopes of transparency in the official business and narratives and rhetoric of the chief minister that corruption has been banished from the province. In its report on the accounts of the Punjab government for fiscal year 2015-16, the government showed ineptness in budgetary allocations and in some cases paid in excess to the contractors of the development projects. Another is the classic case of mismanagement when the government paid Rs 27 billion in excess for a development project in Lahore alone. Under the head of development funds, at least Rs 63.71 billion were paid to different contractors but record of only Rs 35.29 billion was available. In another case, Rs 5.07 billion was unaccounted for due to a non-investment in General Provident Investment Fund. The report also suggests that provincial exchequer incurred a loss of Rs 103.96 billion due to financial mismanagement in issuance and utilisation of supplementary grants. The provincial government had also failed to collect Rs 5.47 billion from autonomous bodies under the head of electricity charges. The report also adds that funds of Rs 8.66 billion were directly released to various agencies without their pre-audit through Accountant General Punjab. According to Punjab Anti-Corruption Establishment director general, the Punjab Finance Department is the most corrupt department in the province while Punjab Land Record and Excise & Taxation departments are at the second and third most corrupt departments, respectively. The total annual budget of Punjab is over Rs 2,000 billion and the lion share of the money goes to the pockets of the corrupt elements within the government departments.

Unfortunately, a few black sheep in the Punjab Anti-Corruption Establishment has rendered the utility of the department ineective. Unless a mechanism is devised to discourage corruption, there is no use of issuing statements. Punjab has a population of over 100 million with educated youth, fertile lands and strong industrial base and prudent policies are required to bring its GDP at par with developed countries.

Rising economic problems A

LAHORE

DR AftAB AfZAL

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s the Financial Action Task Force, a world anti-moneylaundering watchdog, has started discussing proposals to put Pakistan on a list of countries which have failed to prevent terrorist financing, the economy of the country has already been showing bleak performance during the last four years of the Pakistan Muslim League-Nawaz government. The watchdog was founded in 1989 to combat money laundering and preventing terrorist financing but currently it is discussing the financial issues of Pakistan on the insistence of the United

States and India. A useful forum is being misused against a country which has sacrificed billions of dollars and thousands of lives in the so-called war on terror.

Unfortunately, India is using its lobbies in the United States and other influential capitals of the world to damage the economy of Pakistan which has chances of recovery in the wake of Chinese investment in Pakistan. It is equally unfortunate that when hostile countries are trying to squeeze Pakistan economically, the government had failed to introduce liberal business, trade and investment policies. If foreign entrepreneurs are given tax concessions, it will cost nothing to the policymakers who are act-

ing as stumbling block in the way of foreign investment. The country is being run on the crutches of foreign loans and the balance of payments problem could become a snowball in the near future. Due to decrease in imports and failure of the industrial sector to create export surplus, fiscal deficit has increased to 5.8 percent of the gross domestic product from an average of 5.2 percent last year.

Economists fear the deficit would reach 8 percent mark if the current situation is allowed to linger on. However, the move to put Pakistan on the watch list of terror financing by some countries will only multiply the economic woes of the people in

this country. The government should convince the world powers that Pakistan’s economy has already bore the brunt of terrorism and lost billions of dollars in the useless war. Pakistan is an emerging economy and any international pressure would not be in the interest of peace and stability in the region and the neighbouring countries would not be immune to the adverse effects of international sanctions on Pakistan. Prime Minister Shahid Khaqan Abbasi should have to work overtime to make a strategy for the economic revival of the country before the end of his mandate in the office. This will be his best service for the nation.

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Appraisement East lodges FIR against M/s Insiya Packaging & M/s Getco Agencies KARACHI: The Customs Collectorate of Appraisement East submitted a First Information Report (FIR) before the customs court against owners/ partners of M/s Insiya Packaging, Muhammad Hanif, proprietor of M/s Getco Agencies and others. The suspects were booked in a case of fraudulent clearance of restricted imported goods “fireworks” in the garb of raw material for processing at Karachi Export Processing Zone (KEPZ). During the hearing, investigation officer appeared before the court and submitted initial report and informed the court that during the investigation and circumstances, it is established that the importers, with the active connivance of their clearing agent and other associates, have deliberately misdeclared description of the impugned goods and tried to replace the imported goods with other ones with the intent to get illegal clearance of the restricted items.

pcA detects tax evasion of Rs 7m

by M/s wajahat chemicals

Tuesday February 27, 2018

National

Dg Valuation revises customs values of sauces, mayonnaise & mustard

KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 7 million committed by M/s Wajahat Chemicals, it is learnt here on Monday.

Sources told Customs Today that M/s Wajahat Chemicals imported a consignment of cloth dying chemicals MYY 2, and different types of chemicals, and got it cleared from the PICT Karachi vide GDs on October 12, 2017 by paying customs duty at 12 percent after claiming the benefit of the SRO 561/2007. However the subject items were correctly classifiable under the PCT 2308.2473 attracting customs duty at 16 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 7 million. The goods were cleared by Head Examiner Najeeb Alam. Sources told Customs

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KARACHI

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he Directorate General of Customs Valuation has revised the customs values of sauces/salad dressing / mayonnaise/mustard and tomato ketchup through Valuation Ruling No: 1256/2018 under Section 25A of the Customs Act-1969.

The Customs values of sauces / salad dressing/ mayonnaise / mustard and tomato ketchup were earlier determined through Valuation Ruling No.1215/2017 dated 05.10.2017. However, Director General Customs Valuation vide OrderIn-Revision No. 421/2017 dated 19.12.2017 remanded back the case to the Director Valuation with the direction to conduct afresh an exercise to re-determine the customs values of tomato ketchup (various brands) and also advised to revisit the whole issue of bulk packing and discount. Hence an exercise was initiated by this Directorate General to determine the customs values of sauces salad dressing / mayonnaise / mustard and tomato ketchup.

Meeting with stakeholders, including importers, local manufacturers and representatives from Sield formations as held on 23-012018. The commercial importers requested that the Customs Values determined existing Valuation Ruling dated 05.10.2017 are required to be revised downward in the light pre-

vailing international market prices.

On the other hand, the local manufacturers especially tomato ketchup manufacturers contended that the prices of the tomato ketchup determined vide the impugned valuation ruling are on lower side and need to be revised accordingly. They stated that the lo-

cal Tomato ketchup Industry is not only consuming the local raw material but also creating employment opportunities besides earning foreign exchange. They emphasized that the local industry is capable of meeting the demand and there is no need to import tomato ketchup. M/s Heinz Pakistan (Pvt) Ltd.

customs can seek reasonable information only: SHc KARACHI

Today that the importer violated the provisions of Section 21 (8) & (3-A) of the Customs Act-1969, Section 25 read with Section 64 of the Sales Tax Act1990 and Section 954 of Income Tax Ordinance-2001 punishable under clauses (258) and 156 of Section 471(9) of the Customs Act-1969, Section 82 of the Sales Tax Act-1990 and Section 89 & 178 of Income Tax Ordinance-2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance-2001.

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n appellate bench of Sindh High Court (SHC) comprising Justice Munib Akhtar and Justice Omar Sial heard the petitions on law point that whether the petitioner/importers of steel pipes are entitled to refundof their guarantees/pay orders furnished by them pursuant to a court order, when as per case of respondent custom ofSicials, the petitioners were required to prove that the incidence of custom duty has not been passed onto the customers in terms of the provisions of section 19-A of the Customs Act 1969.

Importers are integral part of the economy of this country. Reasonable information only should be required to be asked by the depart-

ment. Government policies and actions should focus on removing business irritants to allow expansion of existing business and to attract new business, observed a division bench of High Court of Sindh deciding 49 identical petitions.

The power of section 19-A must not be used as a garb to harass importers, the order said. The petitions were Siled by pipe steel pipe manufacturers including Karachi Tube Mills which were allowed by a division bench of High Court of Sindh, The bench ordered release of guarantee/ security deposited by the petitioners. The application of Section 19-A of the Customs Act 1969 (incidence custom duty passed on to the enduser) was under challenge by the petitioners. The petitioners were represented by Naveen Merchant advocate while respondents were represented by Ma-

sooda Siraj and Kashif Nazeer advocates. The actual controversy however dates back to year 2013 when government of Pakistan with an aim to promote trade between Pakistan and China allowed concession and exempted them from the payment of custom duty on raw material for manufacturing welded steel pipes.

The exemption was under SRO 659 (1)/2007. But when the consignments arrived at the port, department detained the consignment on ground that material imported was “alloy steel” and subject to 5 per cent customs duty. The petitioners contended that consignments in dispute were “non alloy steel” and hence they are entitled to exemption from custom duty.

On 25-9-2013, a SHC bench as an interim arrangement in view of loss to the importers ordered that consignments be released if they pay

50 per cent of the amount to the department and 50 per cent with the Nazir in the form of bank guarantee/pay order. The petitions were Sinally disposed of on 4.5. 2015 through a consent order according to which if the consignments in dispute do not have Boron more than 0.0008 per cent as “inherent part” of the steel then guarantee/pay order shall be refunded. The custom authorities after judgment took refuge behind the section 19-A and asked the petitioners to prove that they comply with the said section and their money will be refunded only when they prove that they have not on-passed the incidence of custom duty to the end user or customer.

The petitioners/importers were asked to furnish a number of information and documents while denying the refund forcing the petitioners to Sile the instant petitions.

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ATIR reserves decision of cases filed by FBR & M/s Klaguardia Logistics Tuesday February 27, 2018

National islamabad Dry port posts 5pc marginal deficit of customs Duty

ISLAMABAD: Appellate Tribunal Inland Revenue (ATIR) reserved decision after hearing arguments and submission of record by parties during recent week.

Meanwhile, the tribunal adjourned hearing on other cases.

Account Member Dr Ghulam Mujtaba Bhatti was hearing the case involving Federal Board of Revenue and M/s Klaguardia Logistics.

According to details, M/s Klaguardia Logistics had challenged recovery of issued to it in head of outstanding income tax by the LTU, Islamabad.

Dg Valuation revises customs values of natural raw rubber through VR no1257

ISLAMABAD

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KARACHI

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he Customs Islamabad Dry Port Margallah showed -5% decreases under the head of Customs Duty (CD) against an earmarked proportional revenue collection target during the first half of February Financial Year 2017-18.

According to details given by sources of the Model Customs Collectorate (MCC) Islamabad that, during first half, the Islamabad Dry Port (IDP) exhibited -11% decrease of CD against an assigned proportional revenue collection during the first half of corresponding FY16-17. The official sources added that, during first half of FY17-18, the IDP was allocated a proportional revenue collection target amounting to Rs144.32million as CD whereas it earned Rs136.83million. The IDP collected Rs.-7.49million less revenue against an earmarked proportional revenue target.

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tribunal reserves verdict of reference filed by ptcL ustoms Appellate Tribunal reserved decision of M/s Pakistan Telecommunication Co Limited’s customs reference and dated in office hearing on other cases during recent week. Member Technical Ziauddin Wazir heard the matter along with other cases involving Collectorate of Customs and Directorate General of Intelligence and Investigation, Islamabad. M/s Pakistan Telecommunication Co Limited had filed customs reference against MCC. The bench reserved decision after hearing arguments in the case. Meanwhile, the bench adjourned hearing of Khurram Zafer Nazeer Ahmed, and M/s Musa Ghee International’s cases filed against MCC; and M/s Waseem Autos and M/s Nisar Traders cases. –CB Report

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he Directorate General of Customs Valuation has revised the customs values of natural raw rubber latex centrifuged 60% DRC through Valuation Ruling No: 1257/2018 under Section 25A of the Customs Act-1969.

The customs values of natural raw rubber latex centrifuged 60% DRC were determined under Section 25A of the Customs Act, 1969, vide Valuation Ruling No.1056/2017 dated 28-02-2017.

However, various representations were received from manufacturers, wherein they requested to the Directorate General for revision and tantalization of the existing valuation ruling, especially with reference to

determination of customs values keeping in view international market trends of the subject goods. Meeting with stakeholders was held on 08-

02-2018. The stakeholders were requested to furnish invoice of imports during last three months showing factual values. Websites, names and

e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the beneSit of difference in price is passed on to the local buyers. The meeting was attended by the manufacturers. They submitted their documents indicating the values of the subject items have decreased over the months considerably and shall be aligned with the prices as available in the international market. They were especially concerned with the values of such rubber being imported from Thailand.

customs i&i foils bid to smuggle luxury vehicles accessories worth Rs11million T

QUETTA

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he Directorate of Customs Intelligence and Investigation has foiled a bid to smuggle four luxury vehicle chassis and other accessories worth Rs 11 million during special checking.

Sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Chaudhary received a tipoff that some smugglers are trying to smuggle four luxury vehicle chessis and other accessories from Quetta to Karachi. He constituted a raiding team under the supervision of Superintendent Zubair Ali and others. The team enhanced the surveillance in Quetta Road and started searching of vehicles which were coming and going out of the city. During the search operation, the team intercepted a truck bear-

ing registration no: QBS-736 which was going from Quetta to Karachi.

During the checking, the customs team recovered four chassis of lux-

ury vehicles (cars and jeeps) radiators, 50 stepnies and other accessories worth Rs 11 million. The customs team seized all the items

and arrested three smugglers including a driver and after registering a case of smuggling against the owner of the goods .

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FBR to establish Customs House on Pak-Iran border, seeks Rs100m from govt ISLAMABAD: The Federal Board of Revenue has decided to establish a Customs House on Pak-Iran border and sought Rs100 million from the federal government for the first phase of the project. The FBR has proposed to allocate around Rs100 million for the first phase of the project in the budget for next fiscal year (2018-19). The total cost of the project has been estimated at around Rs465 million. The Customs House would be established at Gabd border point near Gwadar. The official sources said that the government has decided to establish the Customs House at the border after Free Trade Agreement with Iran, which would help boost trade between the two countries in coming years.

iHc relisted cases involving customs collectorate, Dg i&i ISLAMABAD

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he Islamabad High Court (IHC) relisted three customs cases involving Customs Appellate Tribunal and Model Collectorate of Customs, Islamabad. Justice Athar Minallah and Justice Miangul Hassan Aurangzeb relisted the customs case filed by Syed Waqas Ali Shah against Collector Adjudication the model customs Collectorate. The appellant had filed the matter against Collector Customs MCC, and the Customs. Meanwhile, IHC division bench comprising Justice Athar Minallah and Justice Miangul Hassan dated in office hearing of cases including the one filed by M/s Awan CNG Re-Filling Corporation Private Limited. The company had

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filed cases against Collectorate of Customs. The bench had also dated in office hearing of matters filed by DG intelligence and investigation against Malik Muhammad Ajmal Khan. M/s Comfort Sales Corporation had filed case against ATIR and customs department. M/s Comfort Sales Corporation had challenged the act of recovery of said amount by commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty. M/s Comfort Sales Corporation had prayed the court that FBR office had issued a recovery notice to the company which did not hold lawful grounds. –CB Report

National

SHc continues interim order on petition filed by M/s Al-Hamra trading company

Suspect in Q Mobile smuggling scam gets pre-arrest bail KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi has approved pre-arrest bail to another suspect namely Muhammad Haris Siddiqui, Manager Corporate Sales and Accounts of the M/s Digicom (Q Mobile), who was booked for attempting to smuggle assorted (Q-Mobile) mobile phones and other goods in the garb of LED lights.

The court also issued notices to the Customs Department and its prosecutor to file their comments on the next date of hearing. During the hearing, the suspect filed a petition for bail and argued that he was falsely implicated in this case, and that he was ready to face trail, however, he had apprehension of arrest, therefore, the court might approve pre-arrest bail till final order in this case. After the arguments, the court granted him pre-arrest bail against the surety bonds of Rs 500,000 and directed him to appear before the court on the next date of hearing for confirmation of the bail. According to the interim charge sheet, on a credible information, Anti-Smuggling Organization (HQ0 MCC (P) Karachi raided at Sadder Central Plaza. –CB Report

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KARACHI

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he Sindh High Court (SHC) has directed Customs Department to Sile comments on a constitutional petition Siled by M/s AlHamra Trading Company (Private) Limited through its proprietor Imran Rauf against show cause notice issued by customs authorities.

While hearing of the petition, a two-member bench, comprising Justice Munib Akhtar and Justice Omer Siyal, also continued interim order and restrained the Customs Department from taking any coercive action against the petitioner.

Earlier, counsel for the petitioner stated that it is engaged in lawful business of import and export and trades in different chemical items and fulfills all the liabilities according to the law. He submitted that it imported chemical items namely styrene butadiene rubber from Taiwan dated 30/30/2017 which was stopped by the customs authorities and allegation was fixed that the imported good is not covered under serial no 100 of the SRO 1125 (1)/ 2011 and the petitioner by concealing the

Tuesday February 27, 2018

facts has got the benefit of the above SRO. Importer said that now only stopping the goods, customs department also issued show cause notice to the petitioner and directed officials to start proceeding against it without fulfilling any lawful requirement.

Citing Secretary Ministry of Finance, Port of Shipping through its Sectary, Chief Collector of Customs

Model Customs Collectorate West and others as respondents, petitioner pleaded the court to declare that act of the respondents is illegal, mala fide and arbitrary.

He also pleaded the court my direct them to release its consignment and restrain them from taking any coercive action against the petitioner till final order in this petition.

17 customs officers reshuffled

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ISLAMABAD

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ederal Board of Revenue (FBR) transferred/posted 17 Pakistan Customs Service ofSicers of BS 17-19 with immediate effect until further orders. Muhammad Asghar Khan (BS-19) has been transferred and posted as Additional Director, Directorate of Post Clearance Audit, Islamabad from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

Suleman Yaqub Khan (BS-19) has been transferred and posted as Additional Director, Directorate of Internal Audit (Customs), Islamabad

from the post of Additional Director, Directorate of Transit Trade, Peshawar. Muhammad Saeed Asad (BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate, Faisalabad from the post of Additional Collector, Collectorate of Customs (Adjudication), Faisalabad.

Ather Naveed (BS-18) is currently posted as Deputy Collector, Model Customs Collectorate, Peshawar. He will look after charge of the post of Deputy Director, Directorate of Transit Trade, Peshawar in addition to his own duties. Ms. Ansir Anise (BS-18) is current posted as Deputy Collector, Directorate of Training & Research

(Customs), Islamabad. She will look after charge of the post of Deputy Director, Directorate of IPRE (North), Islamabad in addition to her own duties. Ms. Saleha Zakir Shah (BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate, Islamabad from the post of Second Secretary, Federal Board of Revenue (Hq), Islamabad. Ms. Kanwal Ali (BS-18) has been transferred and posted as Deputy Director, Directorate of IPRE (Central), Lahore from the post of Deputy Director, Directorate of Training & Research (Customs), Lahore. Ghulam Hyder Mahesar (BS-18) has been transferred and posted as Deputy Collec-

tor, Collectorate of Customs (Adjudication-II), Karachi Deputy Collector, Model from the post of Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi. Ihsanullah Shah (BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate, Gwadar from the post of Deputy Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi. Ammar Ahmad Mir (BS-18) has been transferred and posted as Deputy Director, Directorate General of Training & Research (Customs), Karachi from the post of Deputy Collector, Model Customs Collectorate of Appraisement (West), Karachi.

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Russian economy may suffer from quota agreement

World Customs

MOSCOW: The global agreement on the reduction of oil supplies between the Organization of Exporting Countries (OPEC) and non-OPEC countries could have a negative impact on the Russian economy, according to the country’s central bank. OPEC, along with other exporters, including Russia, agreed to maintain a limited supply of oil for the second consecutive year to reduce inventories and support prices.

Tuesday February 27, 2018

2 ukrainians jailed in uk for tax crackdown in Russia boosts grain traders profits trying to smuggle in 6 migrants MOSCOW

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wo Ukrainians, a former ballet dancer and a chef, have been jailed in the UK for trying to smuggle in six of their fellow nationals. The court in Portsmouth sentenced Vladyslav Kurtoglu, 50, to six years in prison on charges of assisting unlawful immigrationn.

His accomplice, Dmytro Kruik, 29, will spend three years and nine months in jail, RFE/RL’s Ukrainian service reports. The men were detained on May 20, 2017, after they were caught in a yacht at Hayling Island where they had arrived from north-west France.

Kriuk – who took a grinning selSie while on the Tazik yacht – admitted assisting unlawful immigration at an earlier hearing. Vladyslav Kurtoglu, 50, was convicted of the same offense after a trial. Kruik told the border pa-

Sri Lanka’s odel December profits up 11% ri Lanka’s department store Odel, a unit of the Softlogic group, said profits rose 11 percent to 66.3 million rupees in the December 2017 quarter from a year earlier on lower tax payments despite thinning margins. The company had earnings of 24 cents a share in the quarter, interim accounts showed. In the nine months to December 2017, earning amounted to 0.43 cents a share on total profits of 116.3 million rupees, down 32 percent from a year earlier on higher interest costs and administrative expenses. Odel last traded at 22.90 rupees. Revenue in the quarter rose 6 percent to 2 billion rupees, cost of sales grew 1 percent to a billion rupees, expanding gross profits by 11 percent to a billion rupees. Distribution costs rose 11 percent to 124 million rupees and administrative costs also rose 11 percent to 678.9 million rupees. –CB Report

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trol that the purpose of their arrival in Britain was tourism. A prosecutor told the court how there had been “signiSicant planning and resources” invested into the botched illegal people smuggling voyage. Forged documents were also used over the authenticity of the boat and right to sail to the UK. Meanwhile, The an-

nouncement is a signal that the multinational could soon join Goldplat which mines the commodity in Migori.The updated inferred resource estimate completed for the year-end returned … 1 .044 million ounces at Isulu and for Bushiangala 126,600 ounces,” Acacia said of its Kakamega sites in a trading update.

woolly shepherd secures new natherland deal

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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 Sirst 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 Sim-

mons, 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 Sind the headspace to focus on international growth. –CB Report

Russian crackdown on tax avoidance in the agriculture sector has been a boon for its grain traders, allowing them to buy directly from farmers and cut out a complex web of middlemen.

Traders include big international commodities houses and some traders said profit margins on Russian grain had turned positive since the crackdown last year and now compared favourably with much of the business conducted in the European Union.

“After the tax crackdown the Russian domestic market Sinally found itself working in a fair business environment, where entrepreneurial talent is now the driver of success rather than the ‘creative ability’ of some people to invent grey schemes in pursuit of building

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their competitive edge,” a trader said. Working on the Russian domestic market has become easier than before,” he added. Many Russian grain exporters signed an informal and voluntary agreement last May promising from the 2017/18 marketing year that began last July to avoid working with Sirms suspected of failing to pay taxes part of a broader clamp down by Moscow on tax avoidance in the agriculture sector. Russia’s top 20 exporters of grain responsible for 70 percent of the country’s grain and oilseeds exports have restructured their business in line with the tax service’s request. The tax avoiding scheme involved buying and selling grain via a chain of transactions in which the value-added tax liability was left with a small trading company which then ceases to exist. Russia is one of the world’s top grain exporters and the government was estimated to be losing 65 billion roubles ($1.1 billion) a year in unpaid taxes on grain deals at a time.

S Africans dreaming of a better tax deal udget time and as usual taxpayers read stories that taxes will again go up. As usual, fear is peddled everywhere that taxes are going to go up at rocket pace.

But when the worst does not happen relief creeps back; only like the frog in the frying pan, we are slowly cooked for more.

The normal spin-cycle kicks in from the national Treasury as journalists, who are locked in a monopoly vice for a few hours, emerge with a few sensational points to boldly announce that taxpayers have escaped the worst. The South African tax burden is one of the highest in

the world. Tax revenue to gross domestic product (GDP) – excluding social security taxes as our pensions are private – is among the top 10 highest countries in the world.

Moreover, the average world tax burden is 15percent, while South Africa’s is 27percent. The International Centre for Tax and Development shows that total government revenue in South Africa is close to 38percent of GDP, which is 57percent above the world average.

Taxpayers have less money now than stones have water. So the Sirst thing I would like to see is that the tax burden gets eased. –CB Report

china says insurance funds must serve real economy

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BEIJING

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hinese insurance funds must serve the real economy and not be used to provide covert funding to local governments, state news agency Xinhua reported, citing a deputy chairman of the insurance regulator. Chen Wenhui said “fake

creativity” for the use of insurance funds must also be banned. There must be long-term, value investment and diversiSied investment,” Chen was quoted as saying.

Insurance companies must not covertly provide Sinancing for local governments, and should “guide” investment into serving the real economy to align with national strategy, Chen added. China is in the second

year of a campaign to reduce risks from a rapid-build up in debt and riskier types of Sinancing, which has included greater scrutiny of local government spending and debt.

China’s insurance firms saw their net operating cash flow slump 65 percent last year, underscoring the challenges facing the sector as it reels from a state-led crackdown on the sale of risky investment

products. The regulatory crackdown on what is seen as an excessive use of universal life products by some insurers has taken its toll, as evident from the drop in net operating cash flow to 633 billion yuan (S$131 billion) in 2017. The insurance regulator said last month they would “pay high attention” to liquidity, credit and asset-liability mismatch risks.

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KPT shipping report KARACHI: Following is the cargo handling profile of Karachi Port Trust during last 24 hours; ending at 0700 hours. SHIPS ARRIVED: M.T Karachi Tanker Peem 3 Tanker Houston Express Container Ship YM Orchid Container Ship Ever Delight Container Ship Nave PolarisTanker SHIPS SAILED: Golvis Spirit Sti Executive Sydney Trader Fmpc 21 Athens Bridge.

china biggest trade partner for all Australian states hina remains the largest trading partner for all six Australian states, a report said. The “Australia’s Trade by State and Territory 2016-17 report, released by the Department of Foreign Affairs and Trade (DFAT) on Monday, found that Western Australia (WA) remained the biggest exporter among Australia’s states and territories in the 2016-17 financial year. WA, Australia’s biggest state by land mass, accounted for 35.1 percent of the country’s total exports, followed

by Queensland (22.4 percent) and New South Wales (22.3 percent). The report also found that China became the Northern Territory’s biggest trading partner in 2016-17, making it the largest trading partner for all Australia’s states and territories except the Australian Capital Territory (ACT) which does the most trade with Switzerland.

Steven Ciobo, Australia’s Trade Minister,

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Ports & Shipping

new shipping connections boost port of Antwerp’s volumes

Amazon launches service to disrupt shipping industry he launch by the tech giant will put it in direct competition with leading shippers such as UPS and FedEx. Following the news on February 9, 2018, UPS’s stock declined about 6.5% in premarket trading and FedEx’s stock fell by just over 5%. SWA is expected to roll out in Los Angeles, California in the US soon, in collaboration with third-party sellers that sell goods via its website. The service is expected to then spread to other cities around the US. To succeed, Amazon plans to undercut the incumbent delivery services on price, among other strategies.

Amazon will send SWA drivers directly to retailers and warehouses to pick up parcels, cutting out other delivery services from the process. It will then take the packages directly to consumers in the 37 US cities where it currently delivers. The announcement follows the company’s recent forays into logistics and delivery as part of its strategy to take greater control of shipments — in order to win more flexibility and digitally monitor end-toend shipping. –CB Report

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BRUSSELS

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elgium’s Port of Antwerp registered a 7.5% year-onyear increase in refrigerated containers and perishable goods in 2017, thanks partly to boosted connections with Africa and Latin America. With a total of 9.7 million metric tons (MT) of the cargo handled, Europe’s second-largest seaport “continues the positive development of the past few years as a preferred perishables hub,” it said.

Anticipating further increases, port service providers are expanding infrastructure and introducing innovations such as blockchain technology and sustainable transport concepts. “The continuing growth of reefer trafSic via the Port of Antwerp conSirms that the range of transhipment and extended services for perishable goods offer real added value to the market. We are approaching the 10 million tons mark, which we hope to exceed next

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year,” said perishables business development manager Maartje Driessens. Last year the port added or expanded connections to West Africa, including Cameroon, Côte d’ Ivoire, Ghana and Morocco, and Latin America, including Ecuador, Chile and Peru. Additionally, the Levante Express of MSC has been further improved and now offers a direct connection to Beirut as well as optimized transit times between Antwerp and Turkey and Italy. The Antwerp fruit hub is also offering new transport solutions. For exam-

ple, ECU Worldwide, Antwerp’s largest consolidator, has recently introduced a special reefer service for smaller cargo sizes between Europe and the U.S. “Service providers are focusing in particular on the sustainable modal shift from road to rail and inland waterway transport,” the port authority said. “At the end of 2017, Remant Cool Logistics began transporting frozen Belgian fries in reefer containers by barge from the Belgian factory to the Port of Antwerp, which will save around 8,000 truck runs per year.

thailand exports rise at fastest rate in 5 years said that the value of exports in all states and territories grew in 2016-17.

Queensland saw a 30.4 percent increase in exports in 2016-17, followed

by Western Australia at 18.5 percent and New South Wales at 13.1 percent,” Ciobo said in a media release on Monday. Prices received for exports also increased for most states with Queensland seeing the largest increase (up 22.1 per cent).” Australia’s natural resources were the most sought-after goods internationally, the report said.

Iron ore and concentrates were WA’s major exports totaling 62 billion Australian dollars (49.1 billion U.S. dollars), while for Queensland and New South Wales it was coal with values of 23 billion and 11.8 billion U.S. dollars respectively. –CB Report

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hailand’s exports grew at the fastest rate in more than Sive years in January while import growth came in above estimates.

Thailand’s customs-cleared exports rose 17.6 per cent year on year in January, the largest increase in percentage terms since November 2012, according to Sigures from the Ministry of Commerce.

That increase was above the 11.1 per cent forecast by economists in a Reuters poll and signalled continued robust growth at the start of the first quarter. Thailand’s economy grew 4 per cent year on year in the three months to the end of December as strong export demand supported the country’s manufacturing sector. Imports also jumped 24.3 per cent in Janu-

ary, higher than the 16.6 per cent increase in December and above the 15 per cent increase forecast by economists. Meanwhile, Thailand’s economy posted its strongest growth in five years last

year, with solid exports and tourism giving the government confidence to maintain the country’s growth outlook for 2018.

While the economy grew slightly less than expected in the fourth

quarter as state spending slowed, resilient exports prompted the government on Monday to raise its outlook for exports, which have been the economy’s main engine of growth. Exporters, however, face tougher challenges ahead from rising U.S. trade protectionism and a strong baht, hovering at four-year highs. It was down 0.1 percent after the data. The economy grew a seasonally adjusted 0.5 percent in October-December from the previous three months, National Economic and Social Development Board (NESDB) data showed, slower than 0.7 percent forecast in a Reuters poll and 1.0 percent growth in the previous quarter. On an annual basis, growth was 4.0 percent, lower than a median forecast of 4.4 percent, and the July-September quarter’s 4.3 percent expansion, which was the fastest annual pace since January-March 2013.

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ANF recovers 2kg heroin at Benazir Bhutto airport ISLAMABAD: Punjab government has started developments projects worth Rs 2.25 billion to promote modern irrigation system and technology suitable for country’s weather conditions.

A spokesman of Punjab Agriculture Department Najaf Abbas told Radio Pakistan that sixty percent subsidy will be given to the farmers on the installation of Drip Irrigation System. He said Water Management Wing has been given a target of shifting 20,000 acres of land to Drip Irrigation System.

Tuesday February 27, 2018

Business

nAB gears up against corruption ISLAMABAD

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ational Accountability Bureau (NAB) Chairman Justice (r) Javed Iqbal, reiterated his Sirm resolve of not sparing the corrupt, dragging them in the dock and depositing the looted money into national exchequer.

Talking during public complainants hearing (open ketchery), he assured the complainants’ to resolve their corruption related complaints as per NAB law as he Sirmly believes ‘Accountability for All’ without any pressure or inSluence.

The NAB chairman listen the public complaints of individuals pa-

fiA arrests 10 human smugglers LAHORE

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tiently and issued on the spot orders for resolving their complaints as per law. It merits mentioning here that the NAB chairman had an-

Maple Leaf cement’s quarterly profit drops 18.4 percent

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s part of the Federal Investigation Agency’s (FIA) ongoing crackdown against human smugglers in Punjab, Gujranwala anti-human smuggling wing during a raid arrested 10 human traffickers. According to the Gujranwala circle, the accused arrested from Mandi Bahauddin and Sialkot were involved in looting innocent people on false promises of sending them abroad. Those arrested by the FIA include Muhammad Riaz, Muhammad Sarwar, Muhammad Naeem, Zaheer Abbas.

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nounced during his Sirst address to NAB ofSicers/ofSicials that he will directly listen the complaints of public related to corruption and cor-

rupt practices on the last Thursday of every month between 2 p.m. to 4 p.m. at NAB Headquarters.

Accordingly, NAB chairman as per his commitment, he listened to the complaints of people came from all parts of the country at NAB Headquarters and gave them patient hearing and tried to resolve their problems as per law. It is important to mentioned here that NAB chairman not only himself hearing the public complaints of people individually but had also directed all DG’s of regional bureaus of NAB to listen public complaints of people related to corruption and corrupt practices at their respective regional bureaus on the last of every month between 2 p.m. to 4 p.m. so that complaints which come under their jurisdiction as per law could be addressed.

M KARACHI

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aple Leaf Cement’s (MLCF) profit fell 18.4 percent for the quarter ended December 31, 2017 as low prices impeded the growth of sales, analysts said. The cement maker, during the period under review, posted a net profit of Rs1.174 billion as against Rs1.439 billion registered during the corresponding period last year. A company’s notice sent to Pakistan Stock Exchange

showed the company’s earnings per share (EPS) for the aforementioned period clocked in at Rs2.12 as compared to EPS of Rs2.73/share announced previously. “The company also declared an interim cash dividend of Rs1.5/share,” the notice said.

“Sales revenue for the quarter ended December 31, 2017 stood at Rs6.47 billion, up 1.25 percent from Rs6.39 billion recorded in the same period previous year. The company’s finance costs surged three times to Rs186 million amid higher leveraging. “For the half-

year ended December 31, 2017, the company posted a net profit of Rs2.247 billion translating into an EPS of Rs4.12 compared with the profit of Rs2.62 billion and EPS of Rs4.97 in the same period previous year,” the bourse filing said.

Analyst Nabeel Khursheed at Topline Securities said effective tax rate of the cement maker clocked in at 19 percent, down 13 percentage points year on year in 2QFY18. “One of the reasons for this was the tax benefit which MLCF received for setting up a coal power plant,” Khursheed said.

ptDc plans to construct motels on cpec route ISLAMABAD

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akistan Tourism Development Corporation (PTDC) has been planning to construct motels at China Pakistan Economic Corridor (CPEC) route to facilitate tourists in a better environment. Managing Director PTDC Abdul Ghafoor Monday said ,”PTDC wanted to acquire land at CPEC silk route for the construction of motels to accommodate tourists both domestic and foreign.” The MD PTDC said tourism was one of the important sectors for promoting the economic growth of the country. He has said that CPEC would improve quality tourism services between the two countries and would have lasting impact on socio-economic development. In this regard PTDC has approached all four provinces to join hands in the promotion and uplifting of tourism sector he added. He said that PTDC needed to get space on the entry and exit points of CPEC route to take up productive measures for educating tourists about updates in connection with tourism industry. He said that PTDC needed to get space on the entry and exit points of CPEC route to take up productive measures for educating tourists about updates in connection with tourism industry.

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tApi a significant project for all stakeholders: economists ISLAMABAD

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conomist Dr Gulfraz has said that the TurkmenistanAfghanistan-Pakistan-India Pipeline (TAPI) is a significant project for regional stakeholders as the United States is also taking keen interest in the successful completion of TAPI project.

The project is in the best political

interest of the United States, he said while talking to a Radio Programme.

TAPI project was brain stormed in 1995 and the incumbent government rapidly worked on this mega project, said, adding, the project had great signiSicance for Pakistan as the country was in the dire need of energy to overcome its energy shortage. Economist said the gas pipeline was the most economical source of energy and the regional connectivity and economical dependency on each

other would improve the relation between the stakeholders. Economist Mirza Ikhtyar Baig also said, TAPI will prove to be a substitute of Pak Iran gas pipeline project. The project will not only fulSil the shortage of energy in the country but will also generate revenue, establish regional connectivity and will help improve diplomatic relationships between the member countries. He further said it was a very good omen that Sirst phase of the project had been completed

and the second phase had just started in Afghanistan. The security situation in Afghanistan was a serious concern however effective measures were being taken for successful completion of the project, he added. Economist Dr Huma Baqai said ,”It is expected that TAPI project will be completed by 2020, however the long term partnership between India and Pakistan will strengthen the ties between two countries and will improve the security paradigm in the region.”

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Singapore plans to raise goods services tax SINGAPORE: The GST, which will also be raised from the current 7% to 9%, will be imposed on business-tobusiness (B2B) services like marketing, accounting, IT and management, and business-to-consumers (B2C) services like video and music streaming, apps, listing fees on electronic marketplaces, software and online subscription fees. United Overseas Bank had earlier estimated that every 1 percentage point increase in the GST rate would raise government revenue by an additional S$1.56 billion a year. Mr Heng also extended the rebate to Year of Assessment 2019, but at a lower rate of 20 per cent and capped at $10,000. The country’s surplus for 2017-2018 is around S$9.61 billion or over Rs47 thousand crore.

icci congratulates new office bearers of national press club

Tuesday February 27, 2018

Chambers

icci organizes tenpin Bowling championship for business community

ISLAMABAD

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delegation of Islamabad Chamber of Commerce and Industry led by Sheikh Amir Waheed President visited National Press Club Islamabad to congratulate its newly elected office bearers. Tariq Mehmood Chaudhry was elected President, Asif Bashir Chaudhry Vice President, Myra Imran Azam Vice President (Women), Shakeel Anjum Secretary, Nausheen Yusuf Finance Secretary, Abid Abbasi Joint Secretary and Fauzia Kalsoom Rana Joint Secretary (Women) Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that journalistic community was playing impor-

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tant role in providing timely information and educating the society on various key issues which was laudable. He stressed that the government should provide better facilities to the journalistic community so that it could serve the nation more effectively. He said that NPC should fully cooperate with ICCI in highlighting the key issues of business community in print media that would help in redressing problems and facilitating better growth of business activities. Muhammad Naveed Senior Vice President, Islamabad Chamber of Commerce and Industry and Zubair Ahmed Malik Chairman Founder Group said that both organizations have common objectives as they were working for serving the cause of their members. They stressed that both organizations should develop close cooperation for resolving problems of their members and promoting business and economic interests of Pakistan.

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he Sports Committee of Islamabad Chamber of Commerce & Industry has organized a two day Tenpin Bowling Championship to promote sports activities in the members of Chamber and their kids.

The Championship would feature men’s singles and team, females singles and doubles, mixed team and singles for kids of the members.

Muhammad Naveed, Senior Vice President, Islamabad Chamber of Commerce and Industry was the chief guest of the opening ceremony.

Speaking at the occasion, he called upon the government to give priority focus to promoting sports activities in the country in order to develop a healthy and active society.

He said Pakistan was a country of young population and our youth has great scope to excel in every sports.

He said government should take measures to develop conducive environments for sports and provide all needed facilities including grounds for promoting sports activities in the country.

He lauded the efforts of Nasir Mehmood Chaudhry Chairman and all members of ICCI Sports Committee for organizing the Tenpin Bowling Championship. He said credit went to Nasir Mehmood Chaudhry, Ejaz Khan National Bowling Champion and Tauseef Zaman Former Senior Vice President ICCI for holding the championship. He hoped that Sports Committee would organize events of other sports to promote sports activities in the local business community.

Nisar Mirza, Vice President, Islamabad Chamber of Commerce and Industry assured that Chamber would fully cooperate with Sports Committee in its endeavors aimed at promoting the healthy sports activities in the business community. Nasir Mehmood Chaudhry, Chairman, ICCI Sports Committee thanked the business community and their kids for taking active participation in the opening ceremony of Tenpin Bowling Championship. He said that the

fpcci stresses more opportunities for youth SIALKOT

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otential of youth can be harnessed by providing them with more opportunities for growth and personal development.

These views were expressed by Chaudhry Arfan Yousaf, Regional Chairman and Vice President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) during a special meeting, organised for committees allocation for year 2018. He announced that the FPCCI would organise youth conference soon. He said creating opportunities for economic empowerment and constructive engagement of young people through informed decision making, community mobilisation and skills development is our main focus. Iftikhar Ali Malik, Vice

President SAARC CCI, said only youth participation and empowerment are considered as avenues for future development for any country and society. The event was also attended by Shabnam Zafar, Vice President FPCCI, ShaSique Anjum, Vice President FPCC and Khawaja Khawar, Senior Vice President Lahore Chamber of Commerce and Industry. During the meeting, Chair-

manship CertiSicates were awarded.

Khawaja Khawar Rasheed was appointed as Law and Order coordinator, Mian Waqar Ahmad for small traders coordination, while Kashif Anwar was given charge for Sales Tax & Inland Revenue, Riaz Ahmad for Dry Ports, Shahbaz Khan for Anti-Corruption, Agha Iftikhar Ahmad for Anti-Smuggling, Asif Ameer for Automobile Industry.

Committee was planning to organize many other sports events including matches of cricket, hockey, badminton, table tennis and boxing for the members of Chamber in order to promote the sportsman spirit in the local traders and industrialists. Baser Daud former President ICCI, Ashfaq Hussain Chatha, Muhammad Faheem Khan, Tauseef Zaman, Amin ur Rehman, Ejaz Khan, Zia Chaudhry, Ms. Nasira Ali and others were also present at the occasion.

Seminar on ‘High Value Agriculture” at Lcci se of modern techniques and technologies in Agriculture is the need of the hour which carries equal significance for both the businessmen and the men of science and technology.

It was upshot of the speeches delivered at a seminar on “High Value Agriculture” here at the Lahore Chamber of Commerce & Industry. The LCCI President Malik Tahir Javaid, Ceo Yuksel Seeds, Turkey Mr. Yaqub Yuksel, Convener LCCI Standing Committee on Mechanized & High Value Agriculture Mian Shafqat Ali, Ex-vice Chancellor Arid Agriculture University, Rawalpindi Dr. Rai Niaz Ahmed, Dr. Khawaja Asif, Mian Shaukat Ali, Faisal Iqbal Sheikh and Naeem Hanif also spoke on the occasion. –CB Report

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Multan Customs seizes smuggled diesel worth Rs90m MULTAN: The Customs authorities has foiled a smuggling bid and seized over one million litre of high speed diesel worth Rs90 million loaded on 18 trailers. Addressing a news conference, Customs Collector Ambreen Tarar disclosed that the diesel was being smuggled from Iran and 18 truck drivers were arrested who had been produced before a special Customs judge. The arrested drivers have been remanded into Customs custody for four days by the court. They told media that the customs duty on the caught diesel amounted to Rs65 million.

Tuesday, February 27, 2018

CUSTOMS BULLETIN

Hyderabad ASo confiscates nDp auto parts worth Rs1.11 million HYDERABAD wAQAR AHMeD AnSARi www.customsbulletin.com

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he Customs Collectorate Anti Smuggling Organization has conSiscated foreign origin nonduty-paid auto parts old and used items worth Rs 1113800 involving duties and taxes of Rs 712275 during an action near customs check-post of Dera Morr, Jacobabad, Larkana-Sukkur Division. Sources told Customs Today that Collector Akhlaq Ahmad Khattaq received credible information about some smuggling attempts. He immediately constituted a ASO team comprising inspectors, sepoys and driver, participated in the action. The team intercepted a public transport vehicle near customs check-post, Dera More-Sukkur Division, and recovered above mentioned goods. ASO team asked the driver to produce any legal document about the possession of the items but he was unable to do so therefore the consignment was impounded. A case was registered and an investigation also started. Customs Collector Akhlaq Ahmad Khattaq had directed that effective measures be taken to curb smuggling attempts in the region. Collector Akhlaq Ahmad Khattak adopted a comprehensive strategy to foil smuggling.

‘fBR chairman assures to solve issues being faced by importers’ PESHAWAR

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he Collector Customs Collectorate Peshawar has said that Chairman Federal Board of Revenue has shown commitment to solve the issues faced by importers at Torkham Boarder. The Collector Customs said this while talking with Customs Today on Customs House Peshawar. The Collector

Customs Mohammad Saeed Jadoon said that Chairman FBR Tariq Mahmood Pasha have promised to main stream the trade and transit situation at Torkham Boarder and soon and new frame work will be framed to enhance the trade with Afghanistan.

The collector customs added that Customs House has been one of high proSile customs station which not only collect handsome part of revenue but also help to curb smuggling and facilitate genuine trade activities via Khyber Pakhtunkhwa province.

The Collector Customs informed that Anti –Smuggling Units have seized containers of dry fruits in last week and have issued show case notice to the importers in order to provide details of the consignments. The collector customs further expressed that he has been meeting on regular basis with the importers and exporters of Peshawar and Torkham in order to provide Sirst hand importance to the issues which frustrate the importers at Customs Stations.

The Collector Customs while meeting Additional Collector Trade and Transit route inquired

about the situation of bounded train carriages systems which was initiated nine months ago when Sirst batch was received at Dry Port Peshawar while departed from Karachi. The cargo after reaching Dry Port Peshawar have been dispatched to Afghanistan but still the containers remain stranded at Torkham Border for receiving further customs clearance documents. The Collector Customs Mohammad Saeed Khan Jadoon after taking charge at Customs House Peshawar has taken strict action against irregularities and have framed new policy to run the af-

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fairs of Customs Collectorate Peshawar. The Collector Customs have earlier directed the Assistant Collector Zia Ullah Shams to completely operate WebOC roll out service at Customs Station Torkham and Khyber Border Terminal under headed by ICCP in order to provide technical facilitation to importers and the Customs Station to earn more revenue for the customs exchequer.

The collector customs expressed full conSidence in the Customs force of Peshawar and said that they are trained enough to bare burden of extra work.