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hree Broadening of Tax Base zones have pinpointed 10,000 potential taxpayers, who need to be brought under the tax net to increase the number of taxpayers in the country. Member Inland Revenue- Policy Dr. Muhammad Iqbal along with Member Customs Muhammad Zahid Khokhar and Director General BTB Muhammad Tanvir Akhtar, informed the Senate

Standing Committee on Finance and Revenue that Federal Board of Revenue (FBR) had prime focus on the broadening of tax base. “In this regard, three broadening of tax base zones have been established in Lahore, Karachi and Islamabad which are working day and night to achieve the given tasks,” they observed, adding that expansion of tax base in Pakistan remained static much to the dismay of the tax authorities and international donor agencies. “Pakistan has a narrow tax base with only 3.6 million taxpayers constituting only 2

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percent of the total population. Low and noncompliant tax base adversely affect revenue generation and the resultant low tax GDP ratio and dependence on external and internal debts,” FBR ofSicials added. “It was in this back ground that the task of broadening of tax base (BTB) was taken up with renewed resolve in the year 2013 under the direct supervision of Federal Board of a Revenue. The primary objective of the BTB is to contribute towards a tax system based on equity and public trust,” director general of the BTB observed.

Islamabad Dry Port exploits its rare potential by generating Rs900m CD

DG Valuation to revise customs values of pet holographic & pet sequin film

FTO hears appeal filed by M/s CNG Filling Station against RTO-II

Customs Export retrieves evaded taxable dues from two defaulter companies

Customs Quetta reimburses Rs99.413m to exporters during first half of 2017-18

Islamabad Dry Port received an extra revenue of over Rs900million | See pAge 02 |

DG Valuation, has decided to revise the ValuationRulingNo:876/2016onMarch19 | See pAge 03 |

FTO has postponed the hearing of a case filed by M/s CNG Filling Station | See pAge 04 |

Customs Export recovered evaded taxes and duties amounting to Rs12.38million | See pAge 11 |

MCC Quetta paid Rs99.413m of rebate refunds to the exporters under the head | See pAge 16 |

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FBR withdraws 1% additional duty on cotton import Friday, February 2, 2018

Islamabad

ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn one percent additional customs duty imposed on cotton and cotton carded. The FBR issued SRO 59(I)/2018 dated January, 2018 to amend SRO 1178(I)/2015 to withdraw the additional one percent customs duty on import of cotton and cotton carded or combed. Through the latest SRO the FBR added HS Code 52.01 and 52.03 related to cotton and cotton carded or combed inserted in the list of those items which are exempted from levy of one percent additional duty.

islamabad Dry port exploits its rare potential by generating Rs900m cD

ISLAMABAD

nAeeM uLLAH tARiQ

tARiQ DeRYA

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ustoms Appellate Tribunal Chairman Justice (r) Malik Manzoor Hussain dated in oﬃce the hearing of M/s Danial Engineering, M/s Expert Chemico Trading Co, Fazal Rahim and Shaista Gul and others. The chairman was heading tribunal’s division bench comprising other member Ziauddin Wazir. These cases had been filed against Model Collectorate of Customs Islamabad. Chairman would also hear cases at the division bench. Earlier, the bench had reserved a decision on a case filed by M/s TCS Private Limited. A day earlier the bench heard almost nine cases. Directorate General Investigation and Intelligence Islamabad M/s Smart Zone, M/s TCS Private Limited, Saqib Abbas and Ghazanfar Gul had filed these cases. After the completion of arguments, the bench reserved a decision on a case filed by M/s TCS Private Limited. Hearing on other cases was adjourned till February’s second week. During his visit, he had heard around a dozen cases filed by M/s Waseem Autos, M/s Nisar Traders, M/s Parts & Parts, M/s Chief Autos, M/s Aman Elahi, M/s Kohinoor Traders, M/s Saleem Silk Centre, M/s Five Star Trading, M/s Pakistan Royal Group and M/s Nayatel Private Limited.

he Margallah Dry Port Islamabad received an extra revenue of over Rs900million against an earmarked revenue collection target of Customs Duty for six months and 23 days of FY2017-18. According to details explained by Dr. Tahir Iqbal Khattak, Deputy Collector Islamabad Dry Port (IDP), while talking with Customs Today during an exclusive Interview, that the IDP showed an extraordinary performance during above said period. The IDP received Rs2822.129million under the head of CD against an allocated revenue collection target of Rs1883.660million during July to 23rd of January FY17-18. Tahir Iqbal said the IDP earned Rs955.66million extra revenue during above said priod of FY2017-18 against a revenue collection of CD during the same corresponding period. The IDP generated Rs1866.469million as CD during the same period of FY16-17. Giving a revenue analysis of July to December FY2017-18, he said that, during said period, the IDP collected Rs2534.382million of CD against an assigned revenue collection target of Rs1549.17million. The IDP got an extra amount of Rs985.212million under the same head against an earmarked revenue collection target.

Appellate tribunal chairman adjourns hearing of multiple cases

Talking about the revenue analysis, he said the IDP received Rs2534.382million as CD while the IDP did Rs1540.028million under the same heads during previous July to December FY2016-17. The IDP generated an extra revenue of Rs994.350million during six months of current FY2017-18 against the same period of corresponding FY16-

17. He added that the IDP earned Rs5759.04million of all duties and taxes during July to December FY1718 against an assigned revenue target of Rs3246.56 million. The IDP earned Rs2512.48million of extra revenue under all the heads during Sirst six months of FY2017-18 against the same period of corresponding FY20 16-17. Deputy Col-

lector IDP told CT that, during Sirst six months, the IDP entertained imported commodities including different kinds of fabrics, used and new auto parts, food stuff and various China made products, garments, furniture, crockery, suit cases, decoration items, stationery, baggage, toys, industrial raw material and its components.

Haroon invites Japanese businessmen to invest in pakistan

ISLAMABAD

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pecial Assistant to Prime Minister on Revenue and Federal Minister Haroon Akhtar Khan has invited the Japanese businessmen and investors to visit Pakistan and explore investment opportunities in a broad range of areas, particularly infrastructure development in the country. “We have a much improved se-

curity situation and a stable economy with all economic indicators doing very well which should make a strong case for Japanese investors to come to Pakistan and beneSit from the investment opportunities available here,” he said during a meeting with Japan’s Ambassador Takashi Kurai who met the Minister at FBR House to discuss matters related to bilateral economic relationship in the backdrop of recent visit of Taro Kono, Minister for Foreign Affairs of Japan, to Pakistan.

Haroon briefed the visiting envoy on the headways made by the government in overcoming energy shortages and reducing the gap between demand and supply of natural gas in the country. “The evidence for all this is on the ground as we have moved from a routine 18-hour loadshedding in the past to a minimal power outage now, and the same can be said about the gas sector where the recent installation of two LNG terminals has considerably reduced the demand-supply gap, enabling the

government to provide regular, always-on gas supply to the industry,” he said. The Minister pointed out that these initiatives and gains reaped in the energy sector had already started showing results as evidenced by a 15 per cent year on year jump in the month of December, tax-to-GDP ratio had risen from 9.5 % to 12.5% over the last four years and an impressive 18 per cent revenue growth had been recorded since the start of the Siscal which pointed to the burgeoning of businesses and a strong health

of the economy. The Japanese ambassador lauded the government of Pakistan for its liberal, businessfriendly and pro-investment policies and evinced a strong desire on behalf of the government and the people of Japan for a strong and prosperous Pakistan. He assured the Japanese investors would further bring their businesses and forge partnerships with their Pakistani counterparts in days ahead, and requested the Minister for a more liberalized, favorable tax regime in this regard.

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Collector Ashhad honours his team for showing best performance KARACHI: Collector Ashhad Jawad has awarded his team of Model Customs Collectorate Appraisement (East) with appreciation certificates for giving impressive performance. The performance of all 12 deputy/assistant collectors and four Assessment Officers of the Collectorate was also acknowledged by Customs Revenue Receipt Audit (CRA). It is learnt that during Departmental Accounts Committee (DAC) meeting, out of 162 PDPs pertaining to MCC East, more than 96 PDPs (almost 60 percent) were recommended for Settlement by DAC. In addition, many PDPs were recommended for Settlement subject to verification, thus taking total PDP-Settlement figure to more than 105.

court accepts challan against suspects in mobile smuggling case

Friday February 2, 2018

Karachi

Dg Valuation to revise customs values of pet holographic & pet sequin film

KARACHI

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he Customs Taxation and AntiSmuggling Court has accepted a charge sheet against suspects namely Abdul Rauf Tauqeer Raja, vigilance officer of M/S Gerry’s Dnata, and Muhammad Aamir, who were booked for attempting to smuggle non-duty paid foreign origin mobile phones from Dubai to Karachi During the hearing, investigation officer submitted the charge sheet against the suspects which the court accepted. During the last hearing, the investigation officer produced the suspects before the court and informed that a team of Anti-Smuggling Organization intercepted them at Jinnah International Airport Karachi after they came from Dubai via Emirates Airlines.

SRB restores sales tax registration of four companies KARACHI

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indh Revenue Board (SRB) has restored sales tax registration of a batch of four taxpayers, who were suspended for non-compliance of payment and mandatory filing of sales tax return. During past few months of the current fiscal year the SRB restored the sales tax registration of several taxpayers out of 4,338 taxpayers, who were suspended on July 25, 2017 for noncompliance. The SRB on January 19, 2018 sent a communication to Pakistan Revenue Automation Pvt Limited (PRAL) to restore the sales tax registration of following taxpayers as those have paid penalty amount for further payment the outstanding amount and filing the return. The taxpayers include Dynamic Engineering Services, Muhammad Hamza Khan & Co Contractors & Engineers, M/s. Fass Group and Ch Muhammad Umar & Co.

KARACHI

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irectorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 876/2016 on March 19, 2018, it is learnt. According to the details, Surriya Butt has said that the department was reviewing suggestions from various importers to set new prices of pet/holographic and pet sequin Slim. She said that some valuations, which were issued in 2016, were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international market. Sources told that a petition was submitted before the Customs Valuation in which change in prices of pet/holographic and pet sequin flim was requested. Sources said that Valuation Ruling No: 876/2016 was issued on June 23, 2016. A meeting was held with the stakeholders on 19 January 2018. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained. Meanwhile, The Directorate General of Customs Valuation has revised the customs value of un-

coated offset paper for writing, printing and photocopy through Valuation Ruling No 1248/2017 under Section 25A of the Customs Act, 1969. According to details, Customs values of un-coated offset paper for writing, printing and photocopy were determined vide Valuation Ruling No.1190/2017 dated 6.7.2017. As the ruling was old and values in the international market have appreciated. Therefore, an exercise was initiated to

importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained

SHc seeks final arguments on plea filed by Shaikh pipe

KARACHI

M B RAnA

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he Sindh High Court (SHC) has directed parties to complete their arguments on a constitutional petition Siled by M/S Shaikh Pipe Mills Pvt Ltd against enhancement of the value of prime hot rolled coils from $415 to $448 MT. A twomember bench, headed by Justice Munib Akhtar was hearing the petition. Earlier, counsel for the peti-

tioner stated that it is engaged in the lawful business of manufacturing of M.S Pipe/ G.I Pipes and Gold Rolled Coils etc and always fulSills all the liabilities properly. According to the petitioner, it is seriously prejudiced by the actions of the Collector of Customs Collectorate East, being a government functionary and working under Chairman Federal Board of Revenue who have illegally denying the acceptance of transaction value under section 25 (1) of the Customs Act, 1969. Counsel

further informed the court that petitioner imported hot rolled coils from Ukraine at the actual transaction value of $415 per metric ton and Siled goods declaration according with procedure, however, the Collector of Customs Collectorate East regretfully did not accept the transaction value of $ 415 MT and enhanced the same at the $448 MT without lawful authority. Citing Chairman Federal Boards of Revenue and Collector of Customs Collectorate East as respondents, he pleaded the court.

determine the customs values of aforementioned goods under Section 25A of the Customs Act, 1969. Stakeholders’ meeting was scheduled on 18.01.2018, The stakeholders were requested to furnish Invoices of imports during last three months showing factual value. Websites, names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained.

kSe-100 falls 184 points he KSE-100 Index retreated further on as it continued its downward journey for the fifth successive session, finishing the day’s trading below 44,100 points. The trading began on a positive note in the morning with the index surging 300 points to hit an intra-day high of 44,533.76.

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Customs Appellate Tribunal reserves verdict of few cases on Thursday Friday February 2, 2018

Lahore

LAHORE: The Customs Appellate Tribunal heard eight cases on Thursday and adjourned all the cases to different dates and reserved the verdict in few cases. According to the details, a division bench-II comprising Omer Arshed Hakeem, Member Judicial and Imran Tariq Member Technical heard eight cases, including Amjed Khan versus Customs Faisalabad, Hijvery Traders versus Customs Lahore, Dad Muhammad versus Directorate of Intelligence and Investigation Multan.

court approves physical fto hears appeal filed by M/s cng remand of suspect in mobile filling Station against Rto-ii phones smuggling case LAHORE

M iMRAn MeHAR

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he Special Federal Court of Customs Taxation and AntiSmuggling has approved two days physical remand of the accused, who was arrested in smuggling of mobile phones accessories and some other items. According to details, Muhammad Safdar Ashraf was arrested by the customs authorities from Multan International Airport. The Customs team deputed at airport conducted an operation on intelligence information and arrested the accused. The Customs Preventive team, deputed at of Multan airport, recovered non-customs paid mobile phones that he was trying to smuggle by hiding in his luggage. Customs

pRA grants nHA Rs9.4 billion sales tax liability he Punjab Revenue Authority (PRA) has imposed tax liability worth Rs9.491billion on the National Highways Authority (NHA) with Rs 8.131bn in one case and Rs 1.360b in other case of default of non-withholding of Punjab Sales Tax on Services Act 2012. According to a press release, the NHA failed to comply with the withholding rules of PRA on construction, contractual execution of works and repair and maintenance services. The authority has calculated amount from the period between July 2013 and March 2017 against the taxable services hired by NHA during the period. The NHA can avail a right of appeal in the oﬃce of Commissioner Appeals PRA. In case the authority does not move for appeal, the outstanding amount mentioned above shall be treated as final and recovery proceedings will be initiated. –CB Report

team recovered 300 mobile phones and mobile accessories from his possession. Worth of the recovered items is more than Rs 1.5 million in local market. The accused has caused huge loss to the national kitty in the wake of duty and taxes. Customs Intelligence and Investigation team produced him before the customs court for obtaining physical remand to investigate more on the issue that was approved by the court. Customs judge Tahir Sabir has approved his remand for three days. After completion of the remand customs team will present him again before the court for further action. Customs has registered a case against the accused and launched investigation as well after conSiscating the vehicle and clothes that he was trying to smuggle. Customs authorities already registered a case against him under Customs Act 1969.

LAHORE

SAJiD nAwAZ

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e Federal Tax Ombudsman (FTO) has postponed the hearing of a case Siled by M/s CNG Filling Station against the Regional Tax OfSice-II (RTO-II), La-

hore until the next date. The FTO also order counsels to complete the arguments in the case. FTO Advisor Mian Munawar Ghafoor heard the case of M/s CNG Filling Station in which the counsel for the appellant argued that RTO has not released the refund to the appellant for the last three years. He said that the RTO collected excessive tax from the company during

the last three years. The company approached the ofSicer concerned many times for issuance of the refunds but the department did not pay the refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the RTO should make audit of the cases and release the extra amount collected from it from the taxpayer. On the other hand, counsel for RTO argued that the appellant has not submitted all record in the ofSice on which basis it is claiming for refunds. If appellant provides accurate record, the RTO will issue the refunds after proper assessment, he added. After hearing the arguments from both sides, FTO adjourned the case until next date for further hearing and directed the parties to appear on said date to present arguments in the case.

Special court hands heroin smuggler tribunal modifies ono in nDp Mazda case over to customs for five-day custody he Customs Appellate Tribunal tion intercepted a Mazda Truck. On de-

he Customs Special Court has handed an accused smuggler over to Pakistan Customs who was arrested in a smuggling of a large quantity of heroin. He was brought to the court by the Customs Investigation and Prosecution. Earlier, passenger Shoaib Hafeez Khan, carrying eight kilogram of heroin, was held at the Allama Iqbal International Airport. The person in his late thirties was attempting to smuggle the heroin from Lahore into Dubai. The customs ofSicials

had apprehended him while he was trying to clear all the checking points of the Lahore Airport. On suspicious activities, the customs ofSicials searched his luggage wherein eight kilogram of heroin was hidden in a technical way. The customs ofSicials shifted him to the Customs House for further investigation. The customs sources told Customs Today that raids are being carried out in different parts of the city to arrest the mastermind and facilitators behind this smuggling. –CB Report

has modiSied the Order-inOriginal in seized vehicle case which was Siled by the deputy director Intelligence and Investigation, Lahore, against Abdul Sattar and others. Muhammad Shabbir Gujjar, member judicial, heard the case in details and passed the arguments that the respondent has been ready to pay the taxes and duties on reduction of redemption Sine so the Sine is reduced from 20 percent to 10 percent and the case is disposed of. As per brief history of case, the staff of Customs Intelligence and Investiga-

Mobile phones imports rise by14 % in fY 17-18

M LAHORE

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obile imports observed a remarkable growth of 14.38% in the Sirst half of 2017-18 (July to December) with an increase of $376.498 million, as compared to $329.177 million in 2016-17 (July to December).

Due to launch of 3G/4G services in Pakistan, the number of mobile phone manufacturers is rising, hence the mobile imports of these companies are also surging in the country. The imports data has been unveiled by Pakistan Bureau of Statistics (PBS) which compiles and analyzes the statistical data relating various sectors of the country. The import of mobile phones in De-

cember 2017 stood at $73.047 million with an increase of 12.09% from the December 2016 i.e. $65.168 million imports. Moreover, an increase of 12.06% has been observed during July-December 2017 as compared to the same period last year. The total imports recorded in 2017 (July-December) were $739.618 million slightly greater than 2016’s imports from July to

mand, the driver failed to produce legal documents regarding the legality of goods and the same were seized under section 2 (kk) of the Customs Act 1969. After show cause notice, adjudication proceeding were culminated and Order in Original was passed with remarks that seized vehicle to be released to the owner on the payment of 20 percent redemption Sine. The department aggrieved from the order and Siled the appeal before the Customs Appellate Tribunal and produced all document those showing the illegality of goods. –CB Report

December i.e. 659.991 million. Telecom imports during December 2017 recorded a 57.97% growth as compared to November 2017. The statistical data revealed by PBS also indicates that the other telecom apparatus imports witnessed the growth of over 9.77% growth in July-December 2017 and stood at $363.498 million as compared to same period of 2016 i.e. $330.814.

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he Federal Board of Revenue (FBR) has surpassed Rs 2 trillion mark in Sirst seven months of the current Siscal year. It may be recalled that the net revenue collection for the entire year was less than Rs 1.95 trillion when the present government took over in 2013. The provisional collection for the month of January 2018 was Rs 272 billion excluding collection on account of book adjustments which may range between Rs 2 billion to Rs 3 billion. The Sigure of monthly collection is extremely encouraging as Rs 228 billion was collected during January 2017 showing an increase by more than 19 percent. The increase is despite issuing Rs 3 billion more tax refunds in January, 2018 as

Friday, February 2, 2018

compared to refunds issued during the corresponding period of previous Siscal year. Moreover, Sigures of collection received in the treasuries of the remote areas may further swell the revenue Sigures. The target for the year has been Sixed with an annual increase of around 19% over the previous year. During Sirst seven months of the current Sinancial year, Federal Board of Revenue has recorded provisional net revenue collection of over Rs2 trillion as against Rs. 1699 billion collected during the same period of the previous Siscal year, recording an increase of more than Rs300 billion.

r ion fo ollec t c l a n ovisio y 2018 th e p r anuar J f o h ing ont exclud the m n o i l l i b f book s 272 was R ount o c c a n ange tion o may r h c collec i h w Rs 3 ments lion to l i adjust b 2 en Rs betwe billion

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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

pushing exports to $36 billion

he government is considering launching another Strategic Trade Policy Framework to push exports to $36 billion in the next five years. Earlier, the Strategic Trade Policy Framework launched by the PML-N government ended in failure as it could not even maintain the export volume of $25 billion which was achieved during the PPP government. Now the government is involving business community in the process of planning, but it is yet to be seen how much the Ministry of Commerce has the will and resources to implement incentives it is going to offer in the trade policies. Unfortunately, the previous three-year strategic framework policy could not come close to meeting the set targets because of failures at the implementation stage. In the absence of practical steps and solid mechanism, the situation on the ground will hardly change and the new framework could be another failure in the government’s cap. Mere a wish to push exports to $36 billion or beyond without changing the priorities will not bring any positive results. The government will have to relax rules for doing business, give tax and duty concessions to lower the cost of production and overhaul the industry to improve export competitiveness. So far, the export volume has declined by 16 percent from the peak of $25 billion reached in fiscal year 2011-12 to $20.4 billion in 2016-17. The proposed export target of $36 billion would not be achieved until basic and structural changes are made in the manufacturing sector and increase country’s share in regional as well as global trade. The exports are showing moderate growth of over 10 percent since the start of the current fiscal year, but the industry has the potential to achieve higher growth. The government has recently imposed regulatory duty on non-essential items, but those also included raw material for exportable items. When the officials will work blindly, this kind of follies would not remain uncommon. The industrial sector needs to be encouraged by offering tax concessions to local and foreign investors. However, the focus of exports should not be food items, but value added goods as Pakistan has already been placed in the list of countries facing food insecurity. The successive governments have signed free trade agreements which allowed free flow of foreign goods into the country at the cost of local industry.

underperformance of economy T

LAHORE

DR AftAB AfZAL

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he economy of Pakistan has always under performed during political as well as military governments partly because of ill-planning and ill-devised policies and partly due to incapacity of the ofSicial machinery to implement the vital decisions. The country is potentially rich in human and natural resources, with highly qualiSied fund managers and skilled workforce. But no one could do anything to change the lot of this nation. The business and industrial community wants friendly environment, but factually they are the tax evaders in the eyes of the govern-

ment agencies. Which-hunting of investors leads to capital Slight and unfriendly business policies means recession. When tough laws are made to control banking transactions, the Sloodgates of money laundering are turned open from all sides and when high and unrealistic import tariffs are imposed, trade of smuggled items thrives. Casualty of mismanagement is economy and principle beneSiciaries of the maladministration are the corrupt elements no matter they are ofSicials or the businessmen. The trust deSicit increases with every government step and drifts away the genuine taxpayers from the government authorities. In the absence of a core policy on any sector of the

economy, everything is messed up in this country. According to newspaper reports, the All Pakistan Business Forum has expressed dismay over setting the exports target of $35 billion by 2020, which it says is much below the potentials of Pakistan’s economy. Sustainable growth could only be achieved when non-textile sectors are also facilitated. If government wants to curtail the possible increase in inSlation from the beginning, it will have to take certain austerity measures. The rupee is already in dangerous zone as it is losing its worth against dollar with every passing day. Increase in dollar rate means the country will have to pay more on import of goods and it will shake the dy-

namics of the country’s economy. The government has apparently only one option and that is to enter another loan programme with the International Monetary Fund. But the loans are increasingly becoming part of the problem than the not part of the solution. The monster of debt servicing is round the corner at a time when the government struggling to maintain foreign currency reserves. Why the government has failed to launch business simulation drive to deal with economic mess is a million dollar question. Unless prudent policies are devised and the government shuns lavish spending, it will be difSicult for the country to achieve cherished goal of prosperity.

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M/s Fazal Chemical hears appeal filed by M/s Fazal Chemicals LAHORE: The Federal Tax Ombudsman (FTO) has heard an appeal filed by M/s Fazal Chemical against Corporate Regional Tax Office (CRTO) and put off the hearing until the next date. FTO Adviser Mian Munawar Ghafoor heard the case in which counsel for the appellant argued that the CRTO has failed to release the tax refunds for the last two years. He said that the CRTO had been collecting excessive taxes from M/s Fazal Chemical for the last two years. He approached the commissioner concerned many a time for release of refunds but the CRTO officials did not entertain the requests even after the passage of a reasonable time.At the end, the company decided to approach the FTO seeking his intervention in this case. The counsel appealed the FTO advisor to direct the CRTO to clear the refund claims.

SBp asks fBR to form behavioural insight team to enhance tax ratio

Friday February 2, 2018

National

court sends accused to jail for 14-day remand in skimmed milk smuggling case

KARACHI

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tate Bank of Pakistan (SBP) has asked the Federal Board of Revenue (FBR) to establish a behavioural insight team to boost tax-to-GDP ratio. The SBP in its latest report said despite a number of attempts to tax reform tax administration and compliance, the tax-to-GDP ratio in Pakistan remains low. “One reason for this shortfall could be over emphasis on traditional approaches and lack of innovative tools such as behavioural approaches in tax policies,” the central bank said. It said there is growing recognition and mainstreaming of behavioural economics around the world, inspired by success stories of utilizing behavioural tools to complement tax efforts. “This oﬀers a unique opportunity for tax authorities in Pakistan to re-think their approaches towards resource mobilization and unleash country’s true

LAHORE

M iMRAn MeHAR

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he Special Federal Court of Customs Taxation and AntiSmuggling has sent three accused to jail on judicial remand of 14 days. The customs investigation and prosecution team presented them before the court after the completion of two-day physical remand. They were arrested in the smuggling of a large quantity of skimmed milk. The Special Federal Court approved the judicial remand in a case of Rs9million skimmed milk smuggling. Accused Aneel Ahmad, Muhammad Imran and Abdul Ghaffar were presented before the court for their judicial custody that the court had granted. Earlier, the ASO seized the non-duty-paid skimmed milk which was being smuggled for manufacturing of ice-cream. Sources told Customs Today that Collector Faiz Ahmad received a tipoff that some smugglers were trying to smuggle a huge quantity of nonduty-paid Iranian origin skimmed milk through a Hino truck. He im-

mediately constituted a raiding team comprising Deputy Collector Moazzam Raza, Superintendent Nasir Minhas, Inspectors Sajjad Bukhari, Abdur Rehman Butt, Gulzar Bhatti and Azam Wattoo. The abovementioned team established a picket near Faizpur Interchange. The ASO team inter-

cepted the truck which was coming from Quetta. The truck belonged to transporter Haji Nabi Bukhsh. On demand, the driver of the vehicle failed to produce any relevant legal documents regarding the import and transportation of skimmed milk. The Customs ASO team seized the whole milk and, after register-

ing a case, started further investigations. After initial interrogation, the customs had apprehended three accused and presented them before the court for physical remand that had been approved by Customs Judge Tahir Sabir for two days. Now they have been sent to jail for a 14day physical remand.

cooperation with indonesia to help increase in exports revenue potential.” Countries such as US, Canada, Germany, Netherlands, France and Denmark have fully operative behavioural insight units, while other countries are increasing following suit. “These behavioural units usually communicate with taxpayers and send information in a particular format to achieve a desired objectives,” the central bank added. First of all the behavioural insight team analyzes a given situation to identify the real cause of behavioural deviation. Is the given deviation an outcome of cognitive limitations, lack of self control, or a social preference? Once, a behavioural cause is identified, it becomes easier for the tax authority to design a suitable nudge to mould human behavior.

ISLAMABAD

M ARSHAD

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ommerce Minister Pervaiz Malik has said that unilateral grant of zero-rated market access on 20 priority items of Pakistan’s export interest would not only bring some balance in bilateral trade with Indonesia, but will also pave the way for future cooperation between the two countries. He further said that trade growth had been one-sided whereas Indonesia’s exports to Pakistan increased from $1.196 billion in 2012 to $2.238 billion in 2016-17. Pakistan’s exports to Indonesia unfortunately declined from $196 million to $137 million during the same period. While addressing IndonesiaPakistan Business Forum here, Malik said that Pakistan and Indonesia

enjoyed close relations based on religious afSinity, mutual trust and cooperation. “Our warm political ties transformed into a strong economic bond when during the visit of the President of Indonesia in November 2005 and both sides signed the Comprehensive Economic Partnership Agreement (CEPA),” he said, adding that under the umbrella of CEPA, both sides entered a Preferential Trade Agreement in 2012 which has been operational since 2013. Since then bilateral trade has been on an upward trajectory, rising from $1.392 billion in 2012 to $2.375 billion in 2016-17. This not only raised serious questions over the viability of this PTA but also threatened the original plan to graduate to a comprehensive FTA between the two countries” Minister observed adding that convinced of the great potential the Indonesian market

holds for Pakistan, Ministry of Commerce embarked on an endeavour to make the PTA mutually beneSicial. We went into a review of PTA and sought cooperation of our Indonesian brothers in making this Agreement a winwin proposition. He also expressed his gratitude for not only removing the impediments to Pakistan’s current exports but also, unilaterally, granting zero-rated market access on 20 priority items of Pakistan’s export interest. “I am hopeful that this visionary gesture would not only bring some semblance of balance in our bilateral trade but also pave the way for our future cooperation” he added. Pakistan’s economy has been on a path of recovery since 2013” Minister maintained adding that during the last Siscal year the GDP registered growth of 5.3 %, the highest in last ten years. The government’s effort to restore peace and stability and meet-

ing energy requirements has helped Pakistan take strides towards economic prosperity. The Large Scale Manufacturing in Pakistan recorded growth of 5.6% in Siscal year 2017, and the momentum continues in the current Fiscal year. Moreover, he said that the overall business sentiment in Pakistan had signiSicantly improved which has encouraged a number of Sirms to pursue expansion plans. FDI in Pakistan has seen an upward surge and is expected to rise further with impetus provided by China Pakistan Economic Corridor related projects. According to economic forecasts by international Sinancial institutions, Pakistan’s economy can now look forward to steady growth in the coming years” Minister said that Price Water House Coopers recently forecast that Pakistan could become world’s 16th largest economy by 2050, overtaking countries like Italy and Canada.

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Ten deported people arrested Friday February 2, 2018

National M/s Yousuf Mustafa ceramics evades tax, duty of Rs 12.58 million

SIALKOT: Federal Investigation Agency (FIA) arrested 10 Pakistanis deported from Turkey at the Silakot International Airport. According to the FIA officials, the FIA had sent the accused behind the bars after registering separate cases against them.

tyres, tubes manufacturers, Haroon discuss budget proposals at fBR HQ

KARACHI

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ISLAMABAD

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he Directorate of Customs Post Clearance Audit (PCA) has detected duty and tax evasions of Rs 12.58 million allegedly by M/s Yousuf Mustafa Ceramics, it is learnt. Official sources told Customs Today that M/s Yousuf Mustafa Ceramics imported a consignment of different kinds of sanitary items under the PCT Heading 2584.4478 and got it cleared from the Port Qasim Karachi vide GDs on October 30, 2017 by paying customs duty at eight percent after claiming a benefit of SRO 567/2007 through Examiner Imran A Khan. However, the subject item is correctly classifiable under the PCT 2548.2509, attracting customs duty at 12 percent and income tax at 114 percent. So by doing misdeclaration of classification, M/s Yousuf Mustafa Ceramics evaded to pay Rs 12.58 million.

three passengers arrested at airport he Federal Investigation Agency (FIA) Immigration arrested three passengers at the Allama Iqbal Airport. According to FIA spokesman, Mubashar Ali of Vehari was travelling to Italy by flight TK715 on fake documents. He was off loaded and sent to FIA/AHTC Lahore for further action. The two passengers- Ali Asghar and Zulfiqar Ali of Jhelum-were travelling to Dubai by flight PA410. During immigration clearance, their particulars got hit in black list category with the remarks illegal border crossing to Hongkong/parep Guangzhou. Meanwhile, An FIA Gujrat team arrested an alleged human-smuggler and recovered nine Pakistani passports from him. –CB Report

fSice-bearers and representatives of various trade associations met Federal Minister for Revenue Haroon Akhtar Khan here at FBR House to discuss with him various proposals aimed at further facilitating the business community and boosting government revenues. Those who met the minister included ofSice-bearers and representatives from the Pakistan Tyres and Tubes Manufacturers Association as well as other trade bodies, according to FBR press statement. The meetings were part of an extensive consultative process initiated by Haroon Akhtar Khan and his team at FBR to have a Sirst-hand understanding of the issues and con-

cerns of the business community ahead of Sirming up and Sinalizing tax proposals for the next year budget. The representatives of the association briefed Haroon Akhtar Khan on what they described the

anomalies in the taxation regime governing the tyre industry. The presented their proposals to the Minister for providing the industry a level-playing Sield and further boosting growth.

They told the Minister the industry was doing considerably well, not only meeting a major share of the local market but also exporting their products abroad because of their competitive prices and better quality. Haroon Akhtar Khan told them FBR would sincerely look into their issues and concerns and their proposals for redressing the situation would be considered for inclusion in the next year’s budget. “The government is determined to come up with a proindustry and pro-investment budget before ending its term on a successful note,” he said. The minister assured them that the government was concerned about their issues and concerns and due consideration would be accorded to their recommendations and proposals for the upcoming Finance Bill.

customs gains Rs22m as cD while customs islamabad loses Rs120m during 30 days T

PESHAWAR

tARiQ DeRYA

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he MCC Peshawar earned Rs22million of extra revenue of Customs Duty during Sirst 30 days of January FY17-18 against the monthly revenue target while the MCC Islamabad faced a shortfall of Rs120million under the same head during the same period. According to details explained by ofSicial sources of the North Region that, during Sirst 30 days of January FY17-18, the Model Customs Collectorate (MCC) Peshawar generated Rs663million as Customs Duty (CD) while it was earmarked a target of Rs641million for the month of January FY17-18. The Peshawar collected Rs353.85million under the same head during the same period of corresponding FY16-17. The sources told CT that Pe-

shawar posted 87.57% growth of CD during January FY2017-18 against the revenue collection during the same period of FY16-17. The Collec-

torate of Peshawar earned Rs310.85million of additional revenue of CD during January FY17-18 against the corresponding period.

The MCC Islamabad displayed 6.31% revenue collection performance during January 2017-18 against the same previous period FY16-17.

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SHC suspends 13 recovery notices Karachi: A division bench of Sindh High Court suspended 13 notices for recovery of customs duty. According to details Invertex company imported “Bukrram” and other items for use in making diﬀerent items like purses etc. The Director General Customs valuation at the time of examination levied taxes and duty on higher side. The petitioner company Invertec ﬁled the appeal before the applellateauthority. The controversy was however decided by the Special Customs Appellate Tribunal which allowed the appeal against orders of the Pakistan Customs. The tribunal also ruled in favor of the petitioner but they have to move the SHC. The bench today after hearing counsel for both sides suspended the recovery notices issued in respect of custom duty and taxes.

Dg Valuation revises customs values of un-coated oﬀset paper KARACHI

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he Directorate General of Customs Valuation has revised the customs value of un-coated oﬀset paper for writing, printing and photocopy through Valuation Ruling No 1248/2017 under Section 25A of the Customs Act, 1969. According to details, Customs values of un-coated oﬀset paper for writing, printing and photocopy were determined vide Valuation Ruling No.1190/2017 dated 6.7.2017. As the ruling was old and values in the international market have appreciated. Therefore, an exercise was initiated to determine the customs values of aforementioned goods under Section 25A of the Customs Act, 1969. Stakeholders’ meeting was scheduled

on 18.01.2018, The stakeholders were requested to furnish Invoices of imports during last three months showing factual value. Websites, names and Email 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 items in question. Copies of Sales Tax Invoices issued during last three months showing the diﬀerence in price (excluding duty and taxes) to substantiate their contentions. The meeting was attended by importers. Traders and representatives of local manufacturers. All present during the stakeholders meeting agreed to the point that values in the international market of the subject item has increased substantially since the issuance of privities valuation ruling.

National

customs export retrieves evaded taxable dues from two defaulter companies

fto seeks final arguments in refund case LAHORE

SAJiD nAwAZ

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ederal Tax Ombudsman (FTO) Advisor Mian Munawar Ghafoor has heard a case filed by proprietors of M/s Techno Commercial against the Regional Tax Office (RTO-II) Lahore and adjourned it until the next date of hearing. During the proceedings of the case, the counsel for the appellant argued that the Chief Commissioner Inland Revenue RTO-II had failed to release the sales tax refund to the appellant since the last two years. He said the RTO-II collecting excessive taxes from the company during the last two years. The petitioner approached the officials concerned several times for the release of refunds, but the RTO officials failed to clear refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking intervention in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said that delay in release of refunds put burden on taxpayers, adding that the RTO-II should make audit of the case and release the extra amount collected by it from the taxpayer.

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he Customs Export recovered evaded taxes and duties amounting to Rs12.38million from defaulter companies which had been earlier issued with notices in this regard. Sources told Customs Today that, during scrutiny of the import data, it was found that M/s Waheed Baweja Fabrics availed undue beneSits and concessions by importing different consignments and also misusing the SRO 566. The company was found involved in a tax evasion of Rs6.50million. After detecting tax evasion, the Customs Export issued them with a Sinal notice to deposit the evaded amount in the ofSicial account within seven days. After receiving the notice, the management of the M/s Waheed Baweja Fabrics deposited the evaded amount in the ofSicial account of the Customs Export. On the other hand, the management of the M/s Asghar Handicrafts and Export also cleared Rs3.88million of taxes and duties. Sources told CT that M/s Asghar Handicrafts and Export also availed undue beneSits

Friday February 2, 2018

and concessions and avoided paying taxes according to the Customs bylaws. The Customs Export authorities served a Sinal notice on them. After receiving the notice, the management of the M/ Asghar

Handicratfs and Export paid the evaded amount of taxes. Other defaulter company named M/s Sehrish Plastic deposited Rs2million against the Sinal notice No: 279/2017 issued on December 28, 2017.

Senators slam tax, duty exemptions given to chinese cos

ISLAMABAD

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he Senators has criticised controversial duty and tax exemption given to M/s China State Construction Engineering Corporation Limited by the Federal Board of Revenue (FBR). The company has been exempted from paying federal excise duty and sales tax on imported construction material and goods which will be used for the Karachi-Peshawar Motorway (Sukkur-Multan section). Speaking on a calling-attention notice, the senators asked why the exemption had been given to a par-

ticular company. Senator Murtaza Wahab of the People’s Party (PPP) said that an exemption could only be given across the board. “I wonder what prompted the FBR to give an exemption to the tune of Rs10.98 billion to the Chinese Sirm,” he said. Awami National Party (ANP) Senator Ilyas Bilour claimed that the issuance of a statutory regulatory order (SRO) to grant the exemption on import duty after completion of 37 per cent work on the project was incomprehensible. “It means that you have opened the door for other Chinese companies and will dole out these favours to them in the future as well,” he said.

According to Pakistan Tehreek-iInsaf’s Nauman Wazir, initially the cost of the project was Rs240bn which went up to Rs440bn after retendering then was brought down to Rs296bn. He asked if this was the standard policy and if the government would give exemptions like this on all China-Pakistan Economic Corridor (CPEC) projects. Speaking in defence of the SRO, the minister of state for Sinance said that the ministry of communications had moved a summary to the Economic Coordination Committee (ECC), which considered and approved it. “We were advised [to issue the SRO] and we did it,” added Rana Muhammad Afzal. He said com-

munication ministry would be in a better position to explain intricacy of the matter. This led to another argument, with members of the Senate asking that if a project was based on loans — would it increase the loan if the company was charged federal excise duty and sales tax. Senate Chairman Raza Rabbani then proceeded to ask how a summary could be moved against the law. He referred to a judgement on the deSinition of the government and made it clear that the ECC was not the federal cabinet. Minister for Planning and Development Ahsan Iqbal responded to this and said that the Supreme Court judgement was being followed in letter and spirit.

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China adjusts domestic reference prices for tax rebate in gas imports

World Customs

BEIJING: China announced retroactive adjustments in reference prices that are used as a base for tax rebates for gas importers, a policy that started in 2011 to give a respite on taxes to gas buyers. To meet a surge of demand spurred by Beijing’s aggressive gasification campaign, China’s imports of liquefied natural gas (LNG) soared by 46 percent last year, and the nation overtook South Korea as the world’s second-largest buyer after Japan. Reference prices for liquefied natural gas will be set at 26.64 yuan ($4.21) for each Joule (GL), retroactive from Oct. 1 of last year.

Friday February 2, 2018

uk business needs Australian drug smuggler support on customs union makes statement ahead of trial LONDON

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SYDNEY

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ustralian accountant and political wannabe Isaac Roberts, who is locked up in Bali on drugs charges, has said that his “ice addiction was a prison”. And he declared to reporters “say no to drugs” as his case was handed over to prosecutors, beginning the process of bringing him to trial. The 35-year-old, who has spent the past week in a police hospital in Denpasar, was taken for medical checks before being transferred to the police station and then the prosecution ofSice for the ofSicial handover. As he was lead out to be placed in a police van a handcuffed Roberts told the media: “Say no to drugs”. And as he arrived at the prosecutor’s ofSice he cryptically told reporters: “I am very happy to be released from (the) prison of ice addiction”.

italian firm to undertake greek npLs taly’s biggest bad-loan manager, doBank, will undertake the loans of some 400 Greek small and mediumsized enterprises which owe Greek banks a total of 2 billion euros. Greece’s four systemic lenders (Alpha, National, Eurobank and Piraeus) are in the final stage of talks with doBank, a subsidiary of US asset manager Fortress, and an agreement is expected to be signed after the completion of the business plan and the selection of the enterprises whose loans will come under the management of the Italian company. This concerns small businesses with an annual turnover of 1.5-2 million euros or more, active across all sectors of the economy, from agriculture to tourism. Their common denominator is that they have taken out loans from two, three or all four banks, which makes it diﬃcult for creditors to coordinate in the settlement of their debts. –CB Report

Meanwhile, Two Iranian men have been charged with smuggling A$16 million (about NZ$17.5m) worth of opium into Melbourne inside part of a roadworks machine. Authorities discovered 12.4kg of opium resin in the base of an asphalt compacting machine which

arrived by air from Turkey. Federal police converged on the planned delivery address at St Albans in Melbourne’s west on Thursday, where two men, aged 22 and 38, accepted the machine before driving it to another home at nearby Burnside Heights.

Russia, Saudi Arabia aren’t worried about American oil boom:wef

ussia and Saudi Arabia aren’t losing sleep over an American shale oil boom. “Demand is growing… I don’t think we should worry,” Saudi energy minister Khalid al-Falih said at the World Economic Forum in Davos. Al-Falih, who was speaking at a CNNMoney panel, said that global demand will hit 120 million barrels in the next 25 years. The lack of fear is shared by Russia, currently the world’s top oil producer.

“We will need to satisfy the demand and shale is just one of the ways to satisfy the market,” said Russian energy minister Alexander Novak. The International Energy Agency said earlier this month that “explosive” increases in U.S. oil output would push it ahead of Saudi Arabia this year and put it in a position to challenge Russia. The agency, which monitors energy market trends for the world’s richest countries. –CB Report

K’s CBI business group made an impassioned plea for Britain to remain in the customs union after Brexit. Staying in an arrangement where there is a single set of tariffs for goods imported from outside the EU, and tariff-free trade within it, would be a “practical, realworld answer” towards solving some of the complex challenges in phase two of the negotiations, including the Irish border question, argued director-general Carolyn Fairbairn. It is debatable whether remaining in the customs union would, in fact, mean a “soft” border could be retained between Northern Ireland and the Republic of Ireland, since there would still need to be checks on the movement of people if the UK left the single market. But it was a brave call, nevertheless. The vast majority of

British companies have made it crystal clear that, as far as possible, they want business as usual in their trade with the rest of Europe after the country leaves the EU, even if that means a high degree of alignment with the bloc’s rules. But despite doing what is her job representing the views of CBI members — Ms Fairbairn was subjected to the usual barrage of criticism from those who regard continued membership in either the customs union or the single market as a betrayal of those who voted for Brexit. The CBI, like many other organisations that continue to believe in the beneSits of EU membership, is not arguing for a reversal of the referendum vote. But it is trying to insert the voice of exporters, in particular, into the debate. Business voices across the continent should be raised in its support. Staying in the customs union, while no panacea, would go a considerable way to preserving trading relationships, and with them jobs and investment, in a post-Brexit Europe.

netherland fruit exports surpass the 2b xporters stated that Peruvian fruit exports in all their presentations between January and November 2017 amounted to US $ 2.025 billion, i.e. 20% more than in the same period of 2016. The manager of Agricultural exports of the guild, Paula Carrion Tello, said that fresh fruit exports accounted for 89.2% of total exports, but that exports of frozen, canned and dried fruits also stood out. She said that exports were led by avocados (US $ 612 million 225 thousand) and grapes (US $ 394 million 680 thousand), which together accounted for 49% of ship-

ments.Carrion also spoke about the importance of promoting the continuity of investments in the sector, which requires extending the validity of the Agrarian Promotion Law N° 27360, as well as promoting the participation of the main actors of the agricultural export chain in different events linked to the sector. Since one of the goals of the exporter guild is to provide expert information about new trends in the marketing of products, developments, and projections for the sector, the guild will hold the 19th Agricultural Exports Lunch. –CB Report

oil imports by china could lead to zero sum game

BEIJING

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hina will continue to be the engine of global demand growth, thereby providing underlying support to prices. It’s not an unreasonable assumption, given that the world’s largest importer brought in 8.4-million barrels per

day in 2017, 10.1% more than in the prior year, according to customs figures. The extra 800,000 barrels per day China imported in 2017 was about half of total global demand growth. However, there are increasing signs that China’s crude oil imports are moving toward becoming a zero-sum game, insofar as much of the rise in imports is being exported as refined

fuels. A zero-sum game is when the gains of one group are cancelled out by the losses of another. While China isn’t exporting every extra barrel of crude it imports as reSined products, it is increasing its overseas fuel sales, thus potentially displacing crude demand at reSiners it is successfully challenging for market share. China will import 452million tonnes, equivalent to 9-mil-

lion barrels per day in 2018, a gain of 7.7% from 2017, state-owned major China National Petroleum Corp (CNPC) said in its annual outlook released earlier in January. That would be an increase of about 600,000 barrels per day in imports from 2017, a slower growth rate than what was achieved in 2017 but still a signiSicant pull on global demand for crude.

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KPT shipping intelligence report KARACHI: The Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours. ALONG SIDE (Bulk Oil Pier) OP-I Shalamar D. Crude Oil PNSC 24/01/18 OP-II Elli Lady D. Mogas GAC 25/01/18 OP-III Corona D. Palm Oil Alpine 26/01/18 ALONG SIDE (East Wharves) 1 Bung Lucerna D. Chemical East Wind 25/01/18 2/3 Santa Ursula D. Coal OC-Services 25/01/18 11/12 Panoria L. Talc Powder Swift-Sh. 25/01/18 12/13 Silvia Ambition D. Steel Aars-Sh. 22/01/18 14/13 UAFL Zanzibar D. L. Cnt. Golden 24/01/18 15/16 Fyla D. Cannoal East Wind 19/01/18 ALONG SIDE(P.I.C.T) Berth Vacant.

Vietnam forestry wood exports to top $9 billion he country’s exports of forestry product are expected to top US$9 billion this year, with wood and wooden products accounting for $8.5-8.7 billion, according to the Handicraft and Wood Industry Association of HCM City (Hawa). Nguyễn Quốc Khanh, Hawa chairman, said exports of wooden and other forestry products rose by 10.2 per cent last year to a record $8 billion, a figure targeted only in 2020.Exports of wood and wooden products increased by 12.3 per cent a year for the past seven years, and are forecast to rise even faster in the next three years, he told a celebration in HCM City yesterday, on the occasion of the forestry products exported value reaching the $8 billion mark in 2017.He listed the opportunities for the sector until 2020, saying the future is bright.China, the world’s largest supplier of wooden products, has imposed export taxes on wooden products. It faces a lawsuit in the US

Ports & Shipping

Vizag port handles 51 mt cargo so far this fiscal

china 2017 Meg imports grow 15.6% on strong polyester market hina’s monoethylene glycol (MEG) imports in 2017 increased 15.6% to 8.75m tonnes, backed by a stronger-than-expected performance in downstream polyester markets. In 2016, the country took in 7.57m tonnes of MEG, according to China Customs data. Imports of the material grew at a double-digit pace last year, despite a 1m-tonne increase in domestic MEG production to 6.13m tonnes, as overall consumption grew 17.2% to 14.86m tonnes, according to ICIS data. China’s polyester sector had been strong amid improvement in the general macroeconomic conditions. The world’s second-biggest economy snapped six years of steady slowdown in 2017 to post a GDP growth of 6.9%, up from a 26-year low of 6.7% in 2016. Capacity growth in polyester textile last year was estimated to have grown by around 11%, up from 3.6% in 2016, according to ICIS data. Market players were originally expecting a dismal growth of about 2.3% for 2017. –CB Report

RUSSIA

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isakhapatnam port has handled 51 million tonnes of cargo during the current Sinancial year till the end of December, 1.5 mt more than that of the corresponding period last year, in spite of serious challenges in the market, according to Chairman M T Krishnababu. He was speaking at the port here on Friday after hoisting the National Flag on the occasion of the Republic Day. He said the port was conSident of achieving the target of 64 mt by the end of the Sinancial year. The Chairman said there was spurt in coking coal, steam coal, container cargo and other cargoes to the extent of 3 mt or so, offsetting the decline in iron ore, POL (petroleum, oil and lubricants), and other cargoes. Functioning of the port was quite satisfactory on all technical parameters, but there was still scope for improvement to match international standards. During the year, the port had also

Friday February 2, 2018

taken up coastal shipping of steel products of the Visakhapatnam steel plant to Mumbai, Kochi and Ahmedabad. The bilateral trade agreement with Nepal was working well and so far 1,900 TEUs of container cargo had been routed through Visakhapatnam to Nepal, he said. Krishnababu said the Sirst phase of upgrading of the iron ore handling complex, being undertaken by Essar with Rs 580 crore, was nearing completion and it would be operational shortly. Two new berths –

WQ 7 and 8 – taken up at a cost of Rs 243 crores would be ready by March. Reconstruction of old berths – EQ 2 to EQ 5 – would be completed by September at a cost of Rs 182 crore. Development of an additional oil handling facility at OR 1 and OR 2 berths had been awarded at a cost of Rs 185 crore. The multi-modal logistics hub project – a joint venture with Balmer Lawrie & Co taken up at a cost of Rs 211 crore – would be operational during the current Sinancial year.

netherland strength trims scrap exporters’ gains for dumping furniture, reducing the competiveness of its products.Other main furniture producers like Germany and Italy have cut production due to higher costs, while Malaysia and some other ASEAN members have development strategies but lack the workforce required.Global demand for furniture remains high, and though Việt Nam is strong in that area its exports are insignificant, which means there is considerable scope for Vietnamese firms to increase their market share.Minister of Agriculture and Rural Development Nguyễn Xuân Cường hailed the sector’s achievements, saying: “Reaching $8 billion in exports is a very important landmark for the forestry sector.” –CB Report

AMSTERDAM

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resurgence in prices made 2017 a strong year for global scrap exporters after a challenging 2015 and 2016. But a strengthening of the euro over the year cut into the gains made by European suppliers on dollar-denominated cfr Turkey sales compared with suppliers from other destinations. An increase in steel demand and prices in 2017 boosted Turkish steelmakers’ appetite for ferrous scrap, resulting in a rise in scrap consumption. This contributed to a 31.1pc rise in the monthly average of the Argus daily HMS 1/2 80:20 cfr Turkey steel scrap price assessment to $355.30/t in December compared with $270.96/t in January. The euro appreciated by more

than 10pc against the US dollar in 2017 to €0.845/$1 in December from €0.941/$1 in January, supported by an economic recovery across the Eurozone. This meant that when converted to euros, the average monthly cfr Turkey HMS 1/2 80:20 price in December was €300.22/t, an increase of 17.7pc from €254.91/t in January but 13 percentage points lower than the dollar-denominated price.That did not dent European suppliers’ appetite to supply Turkey, as Turkish scrap imports from European countries that use the euro increased by 22.4pc on the year to 7.1mn t in January-November.Total Turkish imports of steel scrap totalled 18.9mn t in January-November 2017, up by 17.9pc on the year, Tuik data show.Dockside prices in the Netherlands, one of the major continental European export hubs for bulk steel scrap

cargoes to Turkey, moved more or less in line with the euro denominated cfr Turkey price.Delivered to dock prices for HMS 1/2 75:25 in the Netherlands averaged around €249/t in December, up by 20pc compared with a January average of around €208/t.But increases in European domestic delivered to mill scrap prices lagged the Turkish imported ferrous scrap price in 2017, as Europe experienced a slower rate of increase in steel output compared with Turkey.The monthly average of the Argus weekly assessed northern Europe delivered to mill shredded ferrous scrap price rose by 8.4pc to €271.18/t in December from €250.13/t in January. The monthly average of the southern Europe delivered to mill shredded ferrous scrap price moved up by 10.4pc to €288.42/t in December from €261.25/t in

January.Turkey’s crude steel output in January-November 2017 rose by 12.7pc on the year to 34.2mn t, while output from European Union nations increased by 3.8pc on the year to 154.9mn t, according to World Steel Association data.Turkish domestic steel demand, particularly from the construction sector, increased significantly following the constitutional referendum on 16 April, after which many infrastructure and housing projects resumed. January-March Turkish building permits fell by 15pc on the year to 28,700, according to Turkish statistics agency Tuik, as many projects were put on hold prior to the referendum because of political and economic uncertainty, before recovering in April-September. Construction permits in JanuarySeptember totalled 125,800, up by 32pc on the year.

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Petrol price increased to Rs84.51 per liter ISLAMABAD: The government has further increased the prices of petroleum products for the month of February 2018. According to new prices of per liter petrol has been increased by Rs2.98 to Rs84.51 from Rs81.53. The price of high speed diesel (HSD) has been increased to Rs89.91/liter from Rs95.83 by raising Rs5.92. The per liter kerosene oil has been increased by Rs5.94 to Rs70.26 from Rs64.32.

Friday February 2, 2018

Business

Shehbaz, Miftah discuss cpec projects LAHORE

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rime Minister’s Advisor on Finance, Miftah Ismail here Wednesday called on Punjab Chief Minister Muhammad Shehbaz Sharif and discussed with him the matters relating to strengthening of economy and ongoing projects initiated under China Pakistan Economic Corridor (CPEC). On this occasion, Chief Minister said the goal of self-reliant and prosperous Pakistan was his mission and all-out resources were being utilized for the purpose. He said that sufSicient improvements had been brought in the na-

import decreases by 26.13 percent KARACHI

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tional economy due to solid economic policies of the government due to which trade and industrial activities had been increased in the province. He said that rehabilitation of the sagging economy, which the government had inherited, was a

political parties must oppose horse trading in senate elections

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he import of power generating machines has declined significantly by 26.13 percent during first half of the current fiscal year owing to improvement in availability of electricity in the country. According to Pakistan Bureau of Statistics (PBS), the import of power generating machines was at $1.24 billion during July – December 2017 as compared with $1.68 billion in the corresponding period of the last fiscal year.

marvelous achievement of Pakistan Muslim League-Nawaz government. Due to effective development strategy of the government, he viewed, trade and economic activities had been boosted and lakhs of new jobopportunities had been created be-

cause of increased investment. The Chief Minister said that CPEC was a gigantic initiative of national development and prosperity and a lot of CPEC-related projects had been completed across the country. Thousands of megawatts electricity had also been added into the national grid with speedy completion of energy projects under CPEC, he said and asserted that world was wondering over speedy completion of the projects in Pakistan. It is sanguine that CPEC had proved a game-changer in the real sense as it had opened the doors of foreign investments to Pakistan, he mentioned. He said, “We are thankful to the president, prime minister as well as the people of China over the mammoth investment package under the CPEC,” adding that CPEC was a great initiative of a friendly country.

ISLAMABAD

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enator Javed Abbasi said that all political parties must oppose horse trading to make sure transparency in upcoming senate elections. While talking to private news channel senator emphasized that candidates should support their own parties on the basis of principles in the elections for strengthen of democracy. He said senate was the main house that produced genuineleaders. It is need of the hour

that the given mandateshould berespected by all.Replying to question he said the legislation carried out in lower house had always been supported by senate that demonstrates democratic process in the country. Javed pointed out many questions were raised due to horse trading on political parties and provincial assemblies addingall unfair means including rigging should be eliminate in the the elections. “A stable provincial government was destabilized in Balochistan, such environment is not suitable for continuous democratic process” he added. Meanwhile, Sen-

ate Standing Committee on Commerce and Textile on Tuesday expressed their concern on performance and in efSiciency of Trade Development Authority of Pakistan (TDAP) and also urged for earlier completion of Authority’s board. The committee’s meeting was chaired by Chairman Senator Syed Shibli Faraz here in Parliament house. In the meeting, Minister for Commerce and Textile Mohammad Pervaiz Malik informed the committee that his ministry would complete the TDAP board soon to enhance the efSiciency of the institution.

‘pak-ukrain bilateral trade increasing in agriculture sector’ ISLAMABAD

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mbassador of Ukraine in Pakistan Volodymyr Lakomov said that agriculture products were one of the most dynamic segments of bilateral trade between Ukraine and Pakistan. In a statement issued here on Tuesday, the ambassador said that the agricultural trade between the two countries would further go up in coming years. The ambassador said that Pakistani edible exports such as various types of oranges and Basmati rice were popular among Ukrainians while Pakistanis had been enjoying Ukrainian sunflower oil, nuts etc. He said that this year both countries plan holding the first session of Ukraine-Pakistan inter-governmental commission on economic and investment cooperation. Volodymyr Lakomov informed that revenue produced from Ukraine’s farm exports in 2017 grew by 16.3% that is more than US$17.9 billion. He said in the preceding year, the figure was $15.5 billion. Currently the share of exports in the total volume of foreign trade in farm produce and foods is 79.4%, farmers provide over 41% of Ukrainian exports. The ambassador said that recently agriculture ministry of Ukraine has published a report and noted that the country’s foreign trade turnover of agrarian and food products stood at $22.6 billion.

‘nAB asked for conducting inquiry into gas suspension to pSM’ ISLAMABAD

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ational Assembly’s Standing Committee on Industries and Production was informed Wednesday that National Accountability Bureau (NAB) has directed its Karachi ofSice to conduct inquiry against the matter of gas supply suspension to Pakistan Still Mills (PSM) by the Sui-Southern Gas Company

(SSGC). A senior ofSicial of NAB informed the committee, which met here with Asad Umer in the chair, that the Chairman NAB had also directed to conduct inquiry against illegal use of the provident fund money and pension of the employees by the PSM administration. He further informed the meeting that the inquiry was likely to be completed within four months, report of which would be presented before the committee.

Meanwhile, Secretary Ministry of Industries and Production informed the meeting that PSM was on the active privatization list and that the total liabilities of the mill had reached upto Rs 188 billion and the employees related liabilities stood at Rs 40 billion, while the SSGC outstanding amount in terms of bill was recorded at Rs. 47 billion. He further said that the government was providing Rs 390 million every month to PSM for paying the salaries to its employees.

The Secretary said that the negotiation with National Industrial Park was in progress and it was expected that an amount of Rs 10-12 billion would be received by NIP to be use for paying the liabilities of deceased employees and payment of pensions, adding the employees welfare was on top priority. Chief Executive OfSicer of PSM told the meeting that operational expenditures of the mill were reduced, besides it had paid an amount of Rs 1.4 billion to its 842

retired employees during2017, adding that the mill was facing about 70 million per month shortfall on current account basis, which it was spending on the operation of its schools, hospitals and transportation. Meanwhile, the State Bank of Pakistan (SBP) informed that meeting that the bank had taken several steps in order to promote small and medium enterprises and was providing upto Rs15 million to women entrepreneurs.

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US tax cuts forcing others to respond NEW YORK: The recent U.S. tax cuts and reforms are exerting a lot of pressure globally, with most countries now looking at ways to enhance their tax competitiveness in order to attract investments and boost growth, according to Mukesh Aghi, president, US-India Strategic Partnership Forum (USISPF). His statement assumes significance as there are expectations that the government may also usher in tax reforms in the Union Budget in line with global trends. Indian subsidiaries of many American companies and even Indian export firms for whom the U.S. is the major market, are said to be considering shifting operations to the U.S. to take advantage of the tax cuts and other benefits of being there, according to Indian industry officials.

Zafar Ali urges for promulgation of new rent control law

Friday February 2, 2018

Chambers

uAe envoy-Lcci chief for more trade between the two countries

ISLAMABAD

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he senior central leader of Pakistan Muslim League (N) and former Senator Syed Zafar Ali Shah has called upon the Prime Minister Shahid Khaqan Abbasi to take measures for the passage of amended bill of new rent control law for Islamabad from the parliament during the current tenure of his government in order to resolve the long-standing issue of the traders of federal capital. He said this while exchanging views with Muhammad Naveed, Senior Vice President, Islamabad Chamber of Commerce & Industry during his visit to Chamber House. Syed Zafar Ali Shah said that traders of Islamabad have been de-

manding since long for new rent law but long delay in its enactment had forced them to launch protests as they were feeling insecure in the absence of rent control act in the federal capital. He stressed that the current government should arrange the passage of amended bill of rent law from the parliament and enforce it in its current tenure so that traders of Islamabad could take a sigh of relief. He said for promoting business activities, traders needed peaceful environment and security of business and added that the promulgation of new rent law would help in realizing these objective. Speaking at the occasion, Muhammad Naveed, Senior Vice President, Islamabad Chamber of Commerce & Industry said that in consultation with all the stakeholders, an amended bill of rent control act for Islamabad was prepared that was presented long time ago in the National Assembly.

LAHORE

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mbassador of UAE Hamad Obaid Ibrahim Salem Al Zaabi has said that Pakistan and UAE have historic friendly relations and close bond of common faith. Both countries should draw a roadmap to cement mutual trade and economic ties. He was talking to the LCCI President Malik Tahir Javaid, Vice President Zeshan Khalil and Executive Committee Members at the Lahore Chamber of Commerce & Industry. The Ambassador said that exchange of trade delegations, participation in each other’s fairs and exhibitions, protection to foreign investments and timely dissemination of trade related informed would now be pursued with a new strategy. He said that such visits will help strengthen greater cooperation between the two sides. He said that UAE greatly values its deep-rooted relations with Pakistan and committed to further consolidate the existing economic ties. The LCCI President Malik Tahir

Javaid said that Pakistan really eager to make best use of each other’s strength and UAE Embassy in Pakistan can play vital role in this connection. He said that Pakistan and UAE are members of Parliamentary Union of OIC Member States and both countries have close, friendly, and cooperative relations. He said that the Lahore Chamber of Commerce & Industry would arrange a trade delegation for UAE soon to find out new avenues for mutual cooperation. He called for establishment of display

centers for Pakistani products in UAE and also urged for restriction free exports of Pakistani pharmaceutical sector to UAE. He said that UAE and Pakistan are major economic and trading partners. Among the top importing and exporting countries for Pakistan, UAE comes at 2nd and 7th places respectively. The balance of trade has always been in favour of UAE because major share of imports made from UAE consist of oils. He said that there was a dip in bilateral trade from 2014 to 2015 but

Rcci team holds meeting with german envoy RAWALPINDI

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six member delegation of Rawalpindi Chamber of Commerce and Industry (RCCI) led by President Zahid Latif Khan called on German Ambassador Martin Kobler in Islamabad here on Thursday. The delegation includes Senior Vice President Muhammad Nasir Mirza, Vice President Khalid Farooq Qazi, former President Mian Humayun Parvez and vice chairman exhibition committee Khurshid Berlas. Talking to the delegation Ambassador Martin Kobler said Germany is one of the largest trade partners of Pakistan among European Union and trade volume between the two countries is 2.5

billion dollar. Pakistan having population of more than 200 million could be the best trade market for Germans to invest in the country. Ambassador said that Germany is willing to offer her utmost assistance in different sectors, including, automobile, communication, solar energy, surgical goods and tourism. He said China Pakistan Economic Corridor (CPEC), no doubt, a mega project for uplifting Pakistan economy. CPEC is an opportunity for Pakistani and German companies and that it could improve cooperation between both the countries. The German Ambassador has expressed desire for the German Companies to become part of the CPEC Projects. While appreciating RCCI’s role in promoting trade activities the German envoy accepted RCCI

President Invitation for the upcoming Rawal International Expo 2018. He assured his full cooperation to the President RCCI in this regard. Speaking on the occasion President RCCI said that Rawalpindi Chamber is fully aware of the significance of enhancing trade relation among all the countries and to achieve the said purpose RCCI is organizing single Country Expos. President RCCI Zahid Latif Khan on this occasion also gave a short briefing on RCCI current and upcoming events. The expo is expected to create effective partnerships between the two sides, particularly in light of the incentives provided by the Pakistani government to attract foreign investments and facilitate the business environment, he added.

in 2016, almost 5% increase was registered in it because of 8% rise in total imports made by Pakistan from UAE. When the value of imports went up to dollar 6,202 million, it brought bilateral trade to dollar 6,987 million. The LCCI President said that change could have been greater if there was rise in Pakistan’s exports to UAE. The value of our exports contracted by 13% and remained limited to dollar 785 million. He said that UAE used to be the largest destination of Pakistani exports.

Delegation of urmia cci iran visits fpcci akistan and Iran enjoying good relations but their bilateral trade is far below the actual potential, observed Senior Vice President, FPCCI, Syed Mazhar Ali Nasir. He was talking to a delegation of Iranian entrepreneurs of West Azerbaijan Province of Iran led by Behnam Tajaddini, of the Urmia Chamber of Commerce and Industries, Agriculture and Mines, here at Federation of Pakistan Chambers of Commerce and Industry, said FPCCI statement on Friday. Nezaratizadeh, Economic Counselor of Iran in Karachi was also present. The meeting was also attended by FPCCI Vice President Ms.Syeda Saeeda Bano, former vice president FPCCI, Shakeel Dhingra, Chairman, All Pakistan Fruit and Vegetable Exporters. –CB Report

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Faisalabad ASO impounds non duty paid Toyota Premio car FAISALABAD: The Anti-Smuggling Organization has seized a foreign origin Toyota Premio car bearing registration NO: ZB-324 during a crackdown. The market value of the vehicle is Rs2289000 involving duty and taxes of Rs1289000. Sources told Customs Today, that after receiving a tip oﬀ regarding smuggling attempts, Assistant Collector Shah Samad Hamdani formed a special ASO team comprising Superintendent Chaudhary Sardar Muhammad, Inspectors Azhar Hussain Jafri, Munawar Rathore and Sepoy Saifullah, Ghulam Mohyuddin, Ghulam Abbas, Faiz Ahmed Wahla.

Friday, February 2, 2018

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customs Quetta reimburses Rs99.413m to exporters during first half of 2017-18 QUETTA tARiQ DeRYA

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he Model Customs Collectorate Quetta paid Rs99.413million of rebate refunds to the exporters under the head of Customs Duty (CD) during the Sirst half of FY2017-18. According to details explained by sources of the MCC Quetta that the collectorate distributed fair enough rebate refunds among the exporters during the Sirst six months of FY17-18 under the head of Customs Duty (CD). It was told that, during the month of December FY17-18, the Quetta Collectorate paid Rs8.474million’s rebate refunds under the head of CD. The sources disclosed that the MCC Quetta paid off Rs6.247million rebate refunds during November FY17-18 while it reimbursed rebates of Rs29.902million under the same head during October FY17-18. It was notiSied that Quetta Collectorate refunded rebates to the exporters valued at Rs11.894million under the head of CD during the month of September FY17-18. Sources added that the Customs Collectorate Quetta paid off Rs42.896million of rebates refunds under the head of CD during July-August FY17-18.

Anf seizes 1.116tons narcotics, arrests 27 in diﬀerent operations ISLAMABAD

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nti Narcotics Force (ANF) has seized 1.116 Tons narcotics and arrested 27 persons including four ladies in drug smuggling. The Force also impounded eight (08) vehicles while conducting 24 counter-narcotic strikes across the country. The seized drugs comprised 748.6 Kg Opium, 348.9 Kg

Hashish, 17.2 Kg Heroin and 1.2 Kg Amphetamine. As per details here on Wednesday, ANF Quetta recovered 25 Kg Opium from mountainous area of Toba Achakzai Tehsil Deobandi District Qilla Abdullah. The drug was intended to be handed over to another narcotics gang. Yet in another operation, ANF Quetta recovered 703 Kg Opium and 58 Kg Hashish from general area Killi Dolangi Tehsil & District Qilla Abdullah. As per initial reports, drug was intended to be handed over to another narcotic gang. In third operation, ANF

Quetta recovered 5 Kg Hashish, which resulted in arrest of a drug peddler namely Noor Muhammad resident of Quetta. ANF Rawalpindi arrested an accused identiSied as Afzal Ali, resident of Gujrat at Benazir Bhutto International Airport, Islamabad and recovered 1.1 Kg Amphetamine. He was destined to KSA by Flight No. EY-234. In another operation, ANF Rawalpindi intercepted a Motorcycle near Sanjawal Chowk, GT Road, Attock and recovered 1.1 Kg Hashish from personal possession of accused. In third operation, ANF Rawalpindi recovered 2 Kg Opium from personal

possession of a lady accused identiSied as Mrs. Sabira, resident of Nowshera. She was arrested near Iqbal Shaheed Toll Plaza, GT Road, Attock. In fourth operation, ANF Rawalpindi recovered 5 Kg Hashish from personal possession of a lady accused namely Abida Parveen, resident of Faisalabad. She was arrested near Iqbal Shaheed Toll Plaza, GT Road, Attock. In Sifth operation, ANF Rawalpindi recovered 4 Kg Hashish from personal possession of a male and a female accused identiSied as Miss Yasmeen and Shakir, residents of Khyber Agency. They were arrested near

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Gondal Bus Stop, Attock. In sixth operation, ANF Rawalpindi recovered 4 Kg Hashish from personal possession of the two accused identiSied as Imran Shah resident of Mardan and Miss Azra, resident of Peshawar. They were arrested near Gondal Bus Stop, Attock. In Seventh operation, ANF Rawalpindi intercepted a Toyota Double Cabin at KFC, F-10 Markaz, Islamabad and recovered 6 Kg Heroin which was tactfully concealed under seats. Two accused persons were arrested at the spot namely Muhammad Tufail and Mumraiz Khan, residents of Peshawar.