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pAkiSTAN’S FirST iNDepTH NewSpAper oN CuSTomS

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Vol 1 Issue No. 288

Karachi, Thu February 4, 2016

KARACHI

AFTAB CHANNA

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he Customs Preventive has collected Rs 10,795.10 million under the head of duties and taxes during January 2016.

According to ofOicial statistics, the Customs Preventive collected Rs 2496.26 million under the head of customs duty, Rs 6,737.18 million as sales tax, Rs 1,139.61 million as income tax and Rs 422.05 million as federal excise duty.

So far, the Preventive Collectorate has collected some Rs

Price Rs. 14.00

78,204 million, out of which Rs 16,920.56 million as customs duties, Rs 50,982.99 million as sales tax, Rs 7,344.57 million as income tax, Rs 2,956.77 million as federal excise duty. Meanwhile, Customs Appraisement West has collected at least Rs 23.056 billion taxes and duties under various heads in the month of January 2016. According to statistics available with Customs Today, the Customs Appraisement West collected Rs 8,952.28 million under the head of customs duty, Rs 9,902.35 million under the head of sales tax, Rs 4,002.20 million as income tax and Rs 199 million under head of federal excise duty during January 2016.

Appraisement East collects Rs 22.3 billion taxes in Jan

Faisalabad Customs Intelligence seizes glass beads worth Rs 1.34m

Economic development of tribal region being revived: KP Governor

Peshawar Customs collects Rs 11.55 billion in 7 months

NTC fully aware of needs of domestic industry: Chairman Raza

The MCC Appraisement East collected at least Rs 22,298.31 million about Rs 22.3b | See pAge 02 |

The Customs Intelligenceconfiscated 63 cartons of foreign origin glass beads | See pAge 03 |

KP Governor Sardar Mahtab Tuesday said that the government is working | See pAge 04 |

The MCC collected Rs 11.556 billion taxes during the first seven months | See pAge 12 |

NTC is undertaking record 18 to 19 investigations after the promulgation | See pAge 09 |

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IHC reserves verdict in a case filed by M/s Al-Haj Enterprise Thursday, February 4, 2016

ISLAMABAD: The Islamabad High Court has reserved a judgement of M/s Al-Haj Enterprise after hearing arguments of both sides.

The IHC judge, Justice Athar Minallah, heard the case and reserved the judgement stating as “wait for order” as per court’s procedure. The appellant had challenged an Customs Appellate Tribunal, Islamabad decision before the IHC which included the tribunal as respondent as well.

Justice Athar also directed the concerned counsel to submit the decision of appellate tribunal in order for consideration while finalizing the judgment of the case.

National

Appraisement-east collects rs 22.3 billion taxes in January

gawadar Customs seizes 32 cartons of iranian juice, chalia, ghutka KARACHI

wAQAr AHmeD ANSAri

KARACHI

AFTAB CHANNA

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he Model Customs Collectorate (MCC) Appraisement East collected at least Rs 22,298.31 million (about Rs 22.3b) taxes/duties under various heads during the month of January 2016.

According to statistics available with the Customs Today, the Appraisement East collected Rs 8,164.04 million under the head of customs duty, while Rs 10,455.48 million as sales tax, Rs 3,529.93 million as income tax and Rs 138.86 million under head of federal excise duty in the corresponding month.

Significantly, the Appraisement East collected Rs 752.56 million on the last working day of January 2016 i.e. January 30 that include Rs 607.37 million under the head of customs duty; Rs 752.56 million as sales tax.

Overall, the Appraisement East has so far collected Rs 174,814.76 million taxes/duties since August 1, 2015 to January 30, 2016 that include Rs 54,620.78 million under head of customs duty; Rs 90,338.93 million as sales tax; Rs 28,993.03 million as income tax and Rs 862.02 million as federal excise duty.

Meanwhile, Model Customs Collectorate (MCC) AppraisementEast Majid Yousfani has directed subordinates to expedite the clear-

ustoms Collectorate Gawadar has seized betel nut, Indian gutkha and 32 cartons of foreign origin juice.

Sources told Customs Today that Customs Collectorate has received a phone call regarding the above said illegal items stored in a godown near Mashi colony. Customs Collectorate constituted a special team and conducted search operation against the illegal activities. During the operation customs team raided a godown and seized thousands of packets of Indian chalia, Indian gutkha and 32 cartons of Iranian juice. Customs team seized the smuggled items and registered a case against the accused person. Further investigations are underway in this regard. Meanwhile, The Customs Gwadar has recovered 112 cartons of foreign origin juices and cigarettes during a crackdown. Sources told Customs Today that customs authorities received secret information about smuggling attempts. After receiving tip-of they constituted a team. The customs team intercepted a vehicle on Warsak Road and recovered 112 cartons of foreign origin juices and cigarettes which were brought into the country without payment of customs duty.

ance process in order to facilitate the traders.

As per details, the collector also urged the ofOicers for conducting assessment and examination of the goods declaration and consignments efOiciently and in a speedy

way. The collector has issued instructions following the complaints put forward by the importer during a meeting with him.

The importers informed the collector regarding the problems being faced by the Pakistan Interna-

tional Containers Terminal Majid Yousfani also directed the ofOicers for early clearance of the consignments with zero pendency. He also directed the ofOicial to examine the consignments cleared through red and yellow channels thoroughly.

rTo-i forms teams to create awareness about tax amnesty scheme

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LAHORE

muHAmmAD NAwAZ www.customsbulletin.com

n compliance with the instructions of Chief Commissioner Inland Revenue, Regional Tax OfOice Tasneem Rehman and Commissioner Inland Revenue, Zone-VI, RTO, Syed Mehmood H. Jafri, various teams have been constituted to create awareness about the tax amnesty scheme.

The teams visited Hall Road,

Anarkali, Beadon Road, McLeod Road, Chamberlain Road and Brandreth Road and held meetings with the trade bodies. During the meeting, all the advantages of the scheme were explained by the ofOicial teams. They traders were informed that the names of those traders will be included in the ATL and tax rates on the banking transactions, purchase of moveable and immoveable properties will be reduced. Audit of such cases will not be conducted for four years and the

traders will be exempted from Oiling wealth statements. The traders warmly welcomed the scheme and promised that they will avail full advantage of the said scheme and will make it successful. At the last of the meeting Commissioner Inland Revenue, Syed Mahmood Hussain Jafri replied all the queries raised by the traders regarding the scheme in detail. The traders hoped that the scheme will be proved a mile stone for the prosperity and development of the country.

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Customs Court issues non-bailable warrants of alleged smuggler LAHORE: The Special Federal Court of Customs Taxation and Anti-Smuggling has issued arrest warrants for suspect involved in a gold smuggling case.

According to details, Tahir Iqbal was allegedly involved in smuggling of gold from Lahore airport. Earlier, the Customs Court had also issued arrest warrant for two suspects last week.

The main accused of the smuggling scam, Muhammad Rizwan, is already in judicial custody. Rizwan was arrested by the Customs authorities when he tried to smuggle gold at the airport.

Customs Appellate Tribunal adjourns references filed by Hattar electronics

Thursday February 4, 2016

National

Faisalabad Customs intelligence seizes glass beads worth rs 1.34m

ISLAMABAD

NAeem uLLAH TAriQ www.customsbulletin.com

ustoms Appellate Tribunal, Islamabad Bench-II adjourned the hearing of six customs references filed by Hattar Electronics, Haripur.

Customs Appellate Tribunal Bench-II Member Technical, Muhammad Maqsoodul Hassan heard the references and adjourned hearing until February 23. The tribunal had adjourned the hearing due to absence of the parties’ counsel. The company had filed references challenging decision of Customs Collector, Peshawar and sought relief from the tribunal. These references were filed in 2008, under numbers: 181-186/CU/IB/2008. Advocate Hamid Idrees would argue on behalf of appellant.

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Campaign against smuggled cigarettes in full swing LAHORE

m HAYAT

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hief Commissioner, Federal Board of Revenue (FBR) Sargodha, Saleem Raza Asif has said that efforts will be made to check the sale of smuggled/non-duty paid cigarettes.

Talking to Customs Today, he said the FBR had launched a campaign against all wholesalers, retailers and consumers which were involved in selling of such illegal products. He added that the sale and possession of smuggled/non-duty paid products was illegal. The chief commissioner said that officials concerned would monitor the illegal sale at all outlets in the city and strict action would be taken against the violators. In this regard, the FBR has also started a comprehensive campaign in the daily newspapers titled ‘Say no to Smuggled/non-duty paid cigarettes’.

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FAISALABAD

NAeem SHeikH

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he Customs Intelligence and Investigation conOiscated 63 cartons of foreign origin glass beads worth Rs 1.349 million involving duty/taxes amounting to Rs 700,000. As per details, Custom Intelligence Additional Director Azmat Tahira received information regarding the storage of smuggled items in a godown of a cargo agency.

She formed team comprising Senior Intelligence OfOicer Zahid Saleem Mirza, Intelligence OfOicer Mansoor Nasir, Sepoy Khalil Ahmad and Muhammad Sajjad to seize the smuggled items.

The intelligence team raided M/s Madina Cargo Jhang Road, Faisalabad and recovered glass beads.

The team asked the owner to show documents regarding the legal import of the items but he could not produce; therefore, the ofOicials seized items under Section 18 of the Customs Act, 1969 read with Section 3(1)(3) of the Import and Export Control Act 1950 punishable under Section 156(1)90 of the Custom Act, 1969. The seizure report has been submitted to the adjudication for further legal action.

Meanwhile, Customs intelligence and investigation has registered Oive cases against smugglers and has impounded smuggled items worth Rs 1,500,000 involving duty and taxes Rs 1,639,200 in last week of January.

Sources told Customs Today that the Customs Intelligence received credible information and formed a special team under supervision of Additional Director Azmat Tshira. The customs team comprising of SIO Zahid Saleem Mirza, IO Main Muhammad Yousaf and IO Farzand Ali, sepoys Tajamul Hussain and Muhammad Ahmad raided various areas of the city and seized imported 63 cartons of glass beads worth Rs 1.34 million, 53

Additional Director Azmat Tahira received information regarding the storage of smuggled items in a godown of a cargo agency. She formed team comprising Senior intelligence officer Zahid Saleem mirza, intelligence officer mansoor Nasir, Sepoy khalil Ahmad and muhammad Sajjad to seize the smuggled items

Court accepts bail of alleged vehicle smuggler LAHORE

m imrAN meHAr

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he Special Court of Customs Taxation and Anti-Smuggling has accepted the postarrest bail plea of a suspect allegedly involved in vehicle smuggling case.

Special Judge Chaudhary Ameer Muhammad Khan granted the bail

against surety bonds of Rs 200,000 and personal guarantee.

As per details, the Customs Intelligence seized a non-customs paid Toyota Corolla car worth Rs 1 million and arrested Muhammad Sadiq, who was driving the car.

The customs team presented the suspect before the Customs Court and asked for remand of the accused and the court accepted his physical remand of three days and later he was sent to jail on judicial remand.

While granting the bail, the court

has ordered the accused to make sure his presence in the court on every hearing until announcement of the court verdict.

Meanwhile, The Special Court of Customs Taxation and Anti-Smuggling has adjourned bail pleas Oiled

by Shahzad Ahmad and M Saeed Khan who are allegedly involved in smuggling. As per details, Special Judge Chaudhary Ameer Muhammad Khan heard 17 cases on Tuesday and issued necessary directions into the cases.

sacks of cardamom worth Rs 3 million, 200 Bags of coconuts worth Rs 1.7 million and a Hino truck bearing registration No. AE-1126 worth Rs 4.5 million.

Furthermore, Custom Intelligence, FIU Khoshab has conOiscated Rs 1.5 million worth of Toyota Hilux Durf bearing registration No. IDL3150 and asked the accused person to show any evidence regarding the vehicle but he failed to produce any legal document.

Sialkot FiA unearths 18 illegal gateway exchanges he Federal Investigation Agency (FIA) has unearthed as many as 18 illegal gateway exchanges during its ongoing massive crackdown launched in various parts of both Sialkot and Narowal districts.

According to Deputy Director FIA Gujranwala region, Ch. Khalid Anees, the special teams of the FIA led by senior officials of cyber crime wing raided at various places in Sialkot.

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NEPRA imposes Rs 1m fine on CPPA Thursday, February 4, 2016

Business

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs 1 million on the Central Power Purchasing Agency (CPPA) for falling short of a rule on fuel price adjustment, which delayed a downward revision in consumers’ electricity bills. The power regulator makes fuel price adjustments (FPA) every month within seven days after the CPPA submits the details to hold a hearing for fuel cost adjustment. The agency is required to submit the details by the 3rd of every month.

According to an official, the CPPA did not submit the requisite information within the prescribed time and violated the directions of the authority.

pSX adds 123.45pts to cross 32,000 mark KARACHI

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pened with negative note, the Pakistan Stock Exchange (PSX) Wednesday witnessed Oluctuation till the last session and gained 123.45 points before closing at 32084.06 points level.

The stocks recorded the highest trading level of 32183.94 points and lowest level of 31778.07 points, with the volume of 147.25 million shares, having over Rs8.015 billion value. As many as 313 companies were active; of which 184 advanced, 113 declined and 16 remained unchanged.

Cement was the top traded sector

NAB nabs 3 ‘suspects’ in rs 160m HBL scam MULTAN

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he National Accountability Bureau Multan Tuesday arrested three ‘suspects’ for their involvement in Rs 160 million worth of scam of HBL, Islamic Banking Branch (Sadar). NAB Spokesperson Ahmed Mumtaz Bajwa (Additional Director) has revealed that alleged outlaw Taha Muhammad Ali was working as Relationship Manager in the bank.

Through fraud, he used to deprive some account-holders from their amounts, he said.

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with 23,747,500 volume, while power generation & distribution remained second with 15,869,500 volume. The three top traded companies were Pak Elektron XR with a

volume of 8,385,500 and price per share of 64.60 (1.42), Dewan with a volume 8,010,500 of price per share of 13.02 (0.36), and Dewan Salman with a volume 7,683,000 of price

per share of 2.42 (0.50).

The top three gainers were Siemens Pak.XD with price per share 930 (30), Shield Corp with price per share of 616.18 (29.34) and Mari Petroleum price per share of 641.10 (25.55). The top three losers were Indus Dyeing with price per share of 807.50 (-42.49), ICI Pakistan with price per share of 450 (-9.75) and Mehmood Tex per share of 186 (-9). Earlier, the PSX opened negative after a long bullish spell as KSE-100 index dropped 75.99 points to reach 31884.62 points level in early trading. The stocks witnessed Oluctuation in trading as KSE100 index lost 25.96 points to drop to 31934.65 points level till midday.

On Tuesday, the stocks closed bullish led by banking and cement sector scrip on strong earnings outlook.

economic development of tribal region being revived: kp governor PESHAWAR

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hyber Pakhtunkhwa Governor Sardar Mahtab Ahmad Khan Tuesday said that the government is working to revive the economic development of tribal region through upgrading and expanding roads in the area to promoting business activities.

He expressed these views while addressing the ceremony on the eve of ground breaking of Shinqa-

mar Dawatoe Maidan road and inauguration of Mastak Bridge on Bara River at Mastak, Bara Tehsil during his visit to Khyber Agency on Tuesday. Detailed briefing was also given to the governor on the occasion. The governor said the completion of Mastak Bridge on Bara River and Shinqamar Dawatoe Maidan road will boost relations between different parts of the Khyber, Orakzai and Kurram Agencies and also improve tourism activities in the area. He appreciated the efforts of military, its engineers and workers for completing the

Mastak Bridge in record time of 5 months. The 108-kilometre Shinqamar Dawatoe Maidan road has a total cost of Rs 2.26 million including its black topping, repairing and widening. This road would be built in two phases and in the first phase the construction work has been started and it will be completed at a cost of Rs. 1.06 million and it will connect Bara to the Teerah Maidan and then Kurram Agency. The second phase would be completed at a cost of Rs 1.2 million. While addressing the tribal elders at the ceremony.

SeCp initiates 68 show-cause proceedings ISLAMABAD

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he Securities and Exchange Commission of Pakistan (SECP) Tuesday started 68 show-cause proceedings against companies, their auditors and directors over violations of the 1984 Companies Ordinance. According to the official statement, the violations include failure to comply with legal provisions in respect of holding annual general meetings, filing of interim accounts, securities deposits and provident fund. The proceedings were initiated against disclosure of interest by directors, discharge of duties by auditors, preparation of consolidated accounts by the holding companies, prohibition on financing for purchase of own shares by companies and non-compliance with Commission’s directions.

The department has adopted a strategy to focus on the quality of audits being performed by the statutory auditors and take to task the auditors whose audit reports are found lacking. Accordingly, during the previous month proceedings against 10 auditors of companies were initiated for not discharging their duties in line with applicable provisions and for their failure to bring out material facts about affairs of companies as per section 260 of the Ordinance.

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Cpi inflation increased to 3.32% in Jan ISLAMABAD

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he inOlation, measured through Consumer price inOlation (CPI) increased to 3.32 percent yearon-year in January, from 3.19 percent in December, marking the highest rate since January 2015.

According to the Pakistan Bureau of Statistics (PBS) data, inOlation had been continuously falling since the

start of the current Oiscal year and touched the lowest mark of 1.32 percent in September last since 2003. The data showed that on a month-on-month basis, prices rose 0.2 percent in January from December 2015. Seven-month (July-Jan 2015/16) average CPI inOlation stood at 2.26 percent against 5.77 percent in the same period last year.

The ofOicial data showed that the whole price index was recorded at minus 0.1 percent in Jan 2016

against a decrease of 0.4 percent in the previous month (December 2015) and a decrease of 2.4 percent in Jan 2015. In January, core inOlation, excluding food and energy costs, increased 4.3 percent year on year basis as compared to increase of 4.1 percent in the previous month and 6.4 percent in January 2015.

Food and non-alcoholic inOlation – carrying more than one-third weight in the CPI basket – was up 1.21 percent in January over the

same month last year. Education charges were dearer by 8.8 percent and charges of utilities (housing, water, electricity, gas and fuel) were up 5.01 percent. Health and education became dearer by 2.53 percent and 8.81 percent, respectively.

Prices of clothing and footwear went up 4.68 percent, and furnishings and household equipment maintenance 3.75 percent in the month under review. On month-onmonth basis, sugar prices increased

six percent, fresh fruit 5pc, chicken 3pc, mash pulse 3pc, tea 2pc and Oish, gram pulse and dry fruits one percent each. However, tomatoes prices were down 38pc, potatoes 29pc, onion 14pc, vegetables 5pc and egg and cooking oil one percent each over the previous month. During the month under review, water supply charges and house rent were up two percent each, while kerosene oil price was down 3.6 percent over the previous month.

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aroon Akhtar Khan, Special Assistant to Prime Minister on Revenue, Tuesday inaugurated a control room-cumoperational room in the FBR Headquarters to coordinate activities in FBR’s Oield formations across the country.

The control room-cum-operational room, which is Oitted with communication and connectivity gadgets, will facilitate and educate the traders about the voluntary tax compliance scheme, which has been launched after approval of the Parliament, said a statement issued by FBR. Member Operations Dr Muhammad Irshad and other senior ofOicials of FBR were also present on the occasion.

Later, Haroon was briefed by the Member Operations on various monitoring and control mechanisms put in place to coordinate efforts for facilitating and educating the traders and motivating them to make full use of the voluntary tax compliance scheme.

The special assistant was informed that all Chief Commissioners of Regional Tax OfOices had already been instructed not to issue any notice to a person who becomes part of this scheme, without the approval of FBR Headquarters.

To make the scheme successful and to facilitate the traders’ community, focal persons and sub-focal persons had also been appointed in all Regional Tax OfOices (RTOs), while informative and explanatory material about the scheme had also been made ready.

Addressing the officers on the occasion, Haroon Akhtar Khan exhorted the officers and staff of FBR to make allout efforts to make the scheme successful. He said the scheme offered a rare and golden opportunity to the traders to become part of the tax net and do their business with ease and comfort and without any fear of being audited for the next four years. Haroon instructed the staff at the control room to keep close liaison with the field formations and work diligently to address any issue hampering a smooth implementation of the scheme. He expected a large number of traders of the country to be benefiting from the scheme because of the incentives and advantages it offered them for documenting their businesses. He also asked the Operations Wing to instruct all Regional Tax Offices and field formations to hold regular meeting with the representatives of All Pakistan Anjuman-e-Tajraan and the local Tax Bar Associations.

Thursday, February 4, 2015

Meanwhile, Member Inland Revenue Policy Rehmatullah Wazir and Member Facilitation and Tax Education Wing Nadeen Dar Tuesday visited Rawalpindi Chamber of Commerce and Industry (RCCI) to explain to traders salient features of the Voluntary Tax Compliance Scheme.

The Members were welcomed by RCCI President Mian Humayun Parvez and other representatives of local business community. In their interaction with traders and mem-

bers of the chamber, the Members explained the beneOits of becoming part of the scheme and urged them to take full advantage of this opportunity to become part of the tax system and do their business without any problem.

e d by th ous e f e i r b i n was on var Haroo perations ntrol er o d co memb nitoring an n place to mo s put i ts for m s i n r a mech dinate effo ating the coor and educ hem to ting t ating facilit and motiva voluntary s he trader full use of t scheme make compliance tax

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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

Banking on foreign loans

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ccording to newspaper reports, the International Monetary Fund has told the government to cut its development budget by 27 percent to contain fiscal deficit within limits and even off the revenue shortfall during the current fiscal year. In fiscal terms, the government will have to cut the development budget by Rs1.111 trillion against Rs1.513trillion approved by parliament and four provinces in June 2015.

The fund also requires the government to limit the expenditure of Public Sector Development Programme at Rs611billion, down 13 percent against Rs700 billion authorised by parliament. The annual development plans of the four provinces will be reduced to Rs500 billion against Rs 813billion allocations by the four provincial assemblies. Earlier, the government assured the IMF that it will lower the budget deficit to place the debt-to-GDP ratio on a downward trajectory and maintain macroeconomic stability to achieve sustainable and inclusive growth. The government is planning to limit the fiscal deficit at 4.3percent of the GDP and assured the fund that it will sustain fiscal consolidation despite missing the target of the budget deficit in the first quarter of 2015-16. It is hoped that government will not ignore the priority areas of the development programmes, including infrastructure, education and healthcare to improve the living standard of the people and safeguard the interests of the vulnerable segments of society. As education, health and social sectors are now the provincial subject, the provinces have agreed with the federal government to maintain the development programmes at 6.5 percent of the GDP despite the collections of the provincial revenues will likely to stay at 1.1percent of the GDP. The Finance Ministry is coordinating with provincial governments to develop a mechanism to gain financial stability on the provincial level during the current fiscal year.

As the government is persuading the IMF for the next tranche of loan, it has failed to introduce any austerity measure on the official level. The business community is already under pressure due to various reasons, including energy crisis, terrorism, rising cost of production and cancellation of orders from foreign buyers which is causing decline in the export volume.

Corruption – the mother of all evils A

LAHORE

Dr AFTAB AFZAL

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ccording to the latest report of the Transparency International, Pakistan is the only country in the South Asian region that has improved its rank by three points on the Corruption Perceptions Index. At least four countries in the region scored the same or less points as compared to their scores in 2014. There is not point to be proud of the improvement in the ranking as corruption is still rife and Pakistan is still in the red zone of the most corrupt countries in the world. In its report on CPI 2015, the Transparency Internationalhas increased Pakistan’s score by one point to 30 in the list

of the most corruption countries.

However, it upgraded its rank by three and called for further steps to improve its performanceby adopting zero tolerance policy against corruption. The Pakistani chapter of the transparency has already recommended various measures to control corruption and improve the country’s rank on the world corruption index. The index covers corruption perceptions in public sector organizations in 168 countries.

The CPI 2015 makes it clear that corruption can be defeated if the government has the will and commitment to rid the nation of this menace. Corruption prevails in government departments of the country, but many countries have improved their scores in the

2015. According to the latest edition of the CPI issued by the Transparency International, twothirds of the 168 countries on the 2015 index have scored below 50 on a scale that begins from zero — perceived to be highly corrupt to 100 — that perceived to be very clean. The anti-corruption activists in Guatemala, Sri Lanka and Ghana have stepped up their efforts to stamp out corruption from their countries. Brazil has shown bigger improvement in the index, shedding Oive points and dropping seven positions to a rank of 76. Denmark has emerged as the corruption-free country for the second year running, but North Korea and Somalia performed the worst scoring eight points each. Corruption and mis-

management are the two basic root causes of the economic woes facing the nation. Corruption has been gradually institutionalized and mismanagement is perceived to be widespread. Tough laws are a colonial legacy and a tool in the hands of the ofOicial machinery to use against whosoever comes across its way. In a society devoid of independent judicial system, misuse of ofOicial powers become order of the day and those who are supposed to check wrongs are also riding in the wrong boat. The institutions which were set up to curb corruption are also involved in corruption. It is good omen that Pakistan has gained some success in its Oight against corruption and the journey towards fairness should have to be continued.

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PetroChina slides after profit alert BEIJING: PetroChina Co, the country’s biggest oil and gas producer, fell in Hong Kong after saying 2015 profit may have fallen 60 percent to 70 percent from a year earlier because of the slump in energy prices. The stock closed down 3 percent at HK$4.61 in Hong Kong, after earlier falling as much as 4.2 percent. The city’s benchmark Hang Seng Index lost 0.45 percent. PetroChina cited crude’s fall and lower domestic natural gas prices for the estimated drop in full-year earnings, estimates for which were compiled according to Chinese accounting standards, it said on Friday in a statement to the Hong Kong Stock Exchange. The company sees the oil market continuing to be weak this year and is seeking to cut costs. It reported net income of 107.2 billion yuan ($16.3 billion) for 2014. Profit is seen dropping by 59 percent, according to the median of 22 forecasts compiled by Bloomberg, based on international accounting standards.

Norwegian ambassador sees great potential for enhancing trade ties orwegian Ambassador to Pakistan Tore Nedrebo has said that Pakistan and Norway have potential to increased trade level adding that many Norwegian companies were interested in making investments in Pakistan. “Norwegian companies are exploring investment opportunities around the world and if they see such opportunities in Pakistan, they will surely come to invest in this country as well”, he added while exchanging views during his visit to the Karachi

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Chamber of Commerce and Industry (KCCI). Embassy of Norway First Secretary Tom Jorgen Martinussen, Honorary Consul General Muhammad Moonis, KCCI President Younus Muhammad Bashir, KCCI Senior Vice President Zia Ahmed Khan, KCCI Vice President Muhammad Naeem Sharif and KCCI Managing Committee members were also present at the meeting. Norwegian Ambassador said, “The existing trade volume of $70 to $80 million, which fortunately is in favor of Pakistan, is not a lot and we need to do lot more for improving it further.” Tore Nedrebo, while highlighting some glaring examples of Norwegian investments in Pakistan, informed that a Norwegian companies plans to establish solar power plant in Sindh whose ground work will begin this year with an initial investment of $250 million which may be raised further keeping in view Pakistan’s need for energy while a hydropower project will also by established in northern areas of Pakistan, he added. Earlier, while welcoming the Norwegian Ambassador, KCCI President Younus Muhammad Bashir said.—CB Report

Thursday February 4, 2016

Chambers

NTC fully aware of needs of domestic industry: Chairman raza N

FAISALABAD

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ational Tariff Commission (NTC) is undertaking record 18 to 19 investigations after the promulgation of new ordinance issued in March 2015, said Muhammad Abbas Raza Chairman NTC. Addressing an awareness session about recent changes in NTC laws at Faisalabad Chamber of Commerce and Industry here, he said that the ultimate objective of NTC is to provide a level playing Oield to the local industry in the wake of globalization. He also spelled out the structural changes made in the NTC ordinance and said that earlier it had only two members along with one chairman while now the number of its members has been increased to 4. “It is also for the Oirst time that the professional competence of chairman and its members have been deOined”, he added.

He said that NTC has two kinds of roles; one is mandatory which includes anti-dumping, countervailing and safeguard measures. NTC has authority to Oix tariffs etc at its own regard while the other part of its

duty is to make recommendations to government on competitiveness of the local industry.

He said that commission has also Oixed timeline to resolve the issueswithin 60 days while in case of recommendations the government and commerce ministry is also bound to follow the time line of 15 days. He further told that regarding

anti dumping law, a clause of lesser duty rate has also been introduced.

However, it would not be applicable incase of imports under Duty and Tax Remission (DTRE) scheme.

Responding to a question, he clariOied that regarding competitiveness, the tariff of gas and electricity didn’t fall within its preview.

He told that commission has also

iCCi urges govt to support badminton team

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ISLAMABAD

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he Islamabad Chamber of Commerce and Industry (ICCI) called upon the government to provide more funding for promotion of badminton, as India was providing Rs 100 million annual subsidy for badminton, but Pakistan was providing a meagre subsidy of Rs 1 million. This was stated by ICCI Senior Vice President Sheikh Pervez Ahmed when the ICCI hosted a reception in honor of Pakistan Badminton Team which has been selected to participate in the 12th South Asian Games 2016 scheduled to commence from February 5, 2016 in India.

The team is consisted of Shabbir Hussain (Captain), Rizwan Azam (Double National Champion since 2006), Kashif Suhleri (Double National Champion since 2010), Ali

Murad (5 times single National Champion), HaOiz Irfan (current Rank No.1), Azeem Sarwar (current Rank No.3) Sara Mohammad (Double Champion since 2010), Saima Waqas, Khizra, Sidra and Sehar.

Speaking at the occasion, Sheikh Pervez Ahmed, congratulated the team members on their selection in Pakistan Badminton Team and hoped they all players would perform their best in the 12th South Asian Games 2016. He said players were the diplomats of Pakistan in sports arena they should put in their best efforts for earning good name for the country. He said Indian badminton team was playing 20-25 tournaments per year while Pakistani badminton team played hardly 3-4 tournaments annually. He stressed that government should cooperate with the Pakistan Badminton Federation in organizing more tournaments so that our play-

ers could groom their talent and bring more laurels for the country.

ICCI Vice President Sheikh Abdul Waheed also addressed the players and assured that business community was ready to cooperate for promotion of supports activities as sporting events not only developed national unity, they always generated lot of business and industrial activities. The South Asian Games, a multisport event, is the regional Games of the Olympic Council of Asia. Since it was Oirst hosted by Kathmandu, Nepal in the year 1984, except for few occasions the event is taking place every alternate year. This mega multinational sports event is held among the athletes of the South Asian countries in various locations across the region. The event is presently joined by the eight South Asian countries namely Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

prepared a checklist in connection with anti-dumping duty which will bring much needed transparency in the complicated anti-dumping laws.

Responding to yet another question, he said that Pakistan has signed a one sided Free Trade Agreement (FTA) in 2006 with China which had negative repercussions on Pakistani industry.

Australia’s Dec imports likely decline as exports grew ustralia’s preliminary official data for goods imports showed that that dropped for the second consecutive month in December and at a markedly faster rate than in November. The services imports is also expected to have slowed, most markedly via reduced tourism abroad. Weaker imports do not imply a sign of declining momentum in Australia’s domestic demand, but an indication of the rapidly declining investment resource boom.

Meanwhile, exports of goods and services are likely to have grown modestly, despite a sharp fall in commodity prices in December. As new capacity comes online, exports of commodity are expected to grow further. —CB Report

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Italy’s black economy equals third of GDP Thursday February 4, 2016

World

ROME: Italy’s black economy is worth at least 540 billion euros ($752 billion), or around a third of its gross domestic product (GDP), Eurispes research agency estimated in a report. The Italian black economy accounted for around 270 billion euros in dodged taxes, Eurispes highlighted in Thursday’s report. “Are we all evaders? Probably yes,” the Rome-based private agency wrote, describing tax dodging as a widespread phenomenon in the country. In addition, more than 200 billion euros were generated by the criminal economy, according to Eurispes. The agency found that in 2015 more than 28 per cent of those interviewed agreed to work without an employment contract, compared to nearly 19 per cent of 2014.

Hk Customs seizes 48kg cocaine worth Hk$51.6m HONG KONG

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our suspected drug trafOickers were arrested after Hong Kong customs ofOicers seized about 48kg of suspected cocaine among a shipment of cocoa beans coming from Panama.

The haul was worth HK$51.6 million and was sealed in a 20-foot shipping container that arrived in Tsing Yi on Wednesday.

After examination, ofOicers found 48 slabs of suspected cocaine inside two nylon bags at the innermost part of the container.

Superintendent Kitty Poon Funglin from the department’s ports and maritime command said ofOicers found the container suspicious as Panama was not a place of origin for cocoa beans.

“The cargo is too Oilthy to be a food container. The beans are also

uS attacks eu tax probes as unfair he United States has attacked high-profile EU tax probes into American companies as unfair and encroaching on the US government’s right to tax them, the Financial Times reported on Saturday. The European Commission has cracked down hard on companies, including US icons such as Apple, Starbucks and Amazon, which worked out arrangements with European Union member countries allowing them to slash their tax bills. EU Competition Commissioner Magrethe Vestager has made a point of testing these “tax rulings,” which are legal in themselves, to see if they breach strict bloc competition rules by giving some companies an advantage over their rivals. The FT said Robert Stack, a US Treasury official, met EU competition officials in Brussels on Friday to express Washington’s concerns.

“We are concerned that the EU Commission appears to be disproportionately targeting US companies,” Stack was quoted as saying.—CB Report

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very pungent which raised suspicions,” Poon said. “The cargo was lighter than it should have been. We also could not Oind any trading records for the recipient company.”

Two men, one local and another from Panama, were arrested at the terminal. Follow-up investigations led customs ofOicers to discover a suspected cocaine manufacturing centre in a residential Olat in San Po Kong on Friday. They seized suspected drug-manufacturing equipment, several kilograms of additives and a small amount of suspected drugs in the Olat. A local woman and a mainland man were arrested. A source closed to the investigation told the Post that the mainland man came to Hong Kong from Panama a week before the cargo arrived and stayed in a hotel in To Kwa Wan. He is believed to be the leader of the syndicate, and was responsible for the dispatch, delivery and trading of the drugs seized. The cocaine is thought to have been destined for the mainland and Southeast Asia.

malaysia Customs foils attempt to smuggle luxury cars JOHAR BARU

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ohor Customs crippled an attempt to smuggle in 26 luxury cars from Singapore worth RM2.9 million including taxes in several locations around Taman Laguna, here, last Wednesday.

Its director Datuk Ramli Johari said a Singaporean woman in her 20s was detained in the raid at 3 pm on the same day at a house in the area. “The smuggling activity was crippled based on information from the public and also customs intelligence information. Among the cars seized were Toyota Alphard, Mercedes Benz Brabus, Toyota Lexus, Honda Integra and Toyota Estima,” he told reporters after the Johor level World Customs Day celebration, here today.

Ramli said initial investigations

proposal for import-export warehouse to curb smuggling

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inister in the Prime Minister’s Department Shahidan Kassim has suggested the building of a special import-export warehouse at the Malaysia-Thailand border to curb smuggling.

He said this irresponsible activity (smuggling) was the main threat to the economy and the source of other problems in the country, hence a more practical mechanism was needed as a solution. “If there is a special warehouse for traders to do the import-export processes, I think it

will be easier for smuggling activities to be controlled,” he told Bernama during his visit to the Wang Kelian Immigration post, near the border, recently. “The smugglers nowadays use container lorries and hang onions to mean that the lorries are bringing in or exiting with the commodity, but among the boxes or gunny sacks are those that contain other things. “A risky route becomes an easy one for entry and exit for the purpose of smuggling if more proactive measures are not taken.—CB Report

revealed that the registration of all the cars worth RM1.1 million, and unpaid tax amounting to RM1.8 million, had been cancelled in Singapore before they were brought into Johor to be sold cheap in the local market. He said, three out of 26 cars were found in the women’s house, while the others were placed in several locations around the housing

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area, believed to make it difOicult for the authorities to spot them. He said, the Singaporean was being investigated under Section 135(1)(d) of Customs Act 1967 while the customs continues to locate other individuals involved in the smuggling syndicate. “The woman who is married to a local is believed to be one of the syndicate members.

Housing deals fall 40% last month ousing transactions in the nation’s major municipalities plummeted 40 percent last month from a year earlier, as cold weather and policy uncertainty drove buyers to the sidelines until a government transition is completed, brokers said yesterday.

Existing home sales totaled 11,565 units in the six special municipalities, representing a 40 percent drop from a year earlier and a 68 percent retreat from December last year, when sellers rushed to close deals to avoid stiff property taxes this year, brokers said.

The latest trading volume is the

lowest since local governments launched the survey in 1999, suggesting the market has yet to hit the bottom and the rebound in December was just an isolated incident, Evertrust Rehouse Co assistant manager Chung Yin-lin said. The weeklong cold spell late last month kept potential buyers at home and lingering policy uncertainty dampened purchase interest, Chung said, adding that the disappointing economy has lent support to caution. Home transactions are bound to further soften this month, as the Lunar New Year holiday is to shorten working days, Chung said.—CB Report

S Lanka Customs seizes foreign currency worth over rs 12m

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COLOMBO

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ustoms ofOicials attached to the Katunayake Customs Clearance OfOice have seized a stock of foreign currency worth over Rs.12.6 million rupees that was being attempted to be illegally smuggled out of the country.

Customs Media Spokesperson, Customs Export Director, Leslie Gamini said that two individuals from Ja-Ela and Piliyandala who allegedly attempted to smuggle the stock of currency out of the country, were arrested on Monday morning.

Leslie Gamini said that further investigations are being carried out by ofOicers of the Katunayake Customs Clearance OfOice. Meanwhile, ETI Fi-

nance Limi ted , a registered Oinance company with the Central Bank, is to receive foreign equity investment to the tune of US $100 million, Swarnamahal Financial Services PLC said in a Oiling to the Colombo Stock Exchange. ETI Finance as the parent company of Swarnamahal Finance holds 90 percent of the latter’s shares. The Oiling said Central Bank approval had been granted for the

equity injection. Central Bank of Sri Lanka has approved the proposal to inject US$ 100 million to ETI Finance Limited as a share capital,” the Oiling said. The capital injection is mandated to be completed by February 28, 2016. Media reports said the funds were coming from Australia.

Steep decline in gold prices and mismanagement had resulted in an erosion of assets at ETI Finance.

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Oman’s oil production targets at 990,000 bpd MUSCAT: Oman’s oil production this year is targeted at around 990,000 barrels per day (bpd), said Minister of Oil and Gas, Mohammed bin Hamad Al Rumhy, adding it would be difficult to halve the economy’s dependence on oil in five years. The target for this year is 980,000 to 990,00 bpd or slightly more than that, the minister told reporters on the sidelines of a ceremony held at the Crowne Plaza on Monday. The event was held to honour195 Omani job-seekers, who graduated to the highest international standard to work as welders at the Rabab Harweel integrated oil and gas mega project of Petroleum Development Oman (PDO).

grain shipments from Black Sea ports set new record lack Sea ports in grain exporting countries increased grain handling to a record high, mainly owing to export shipments. This fact reflects the increasing role of Black Sea countries in the world grain trade and global food supply. Thus, according to USDA, in 2015/16 only wheat shipments from these countries will reach 37% of total world exports compared to 36% last season and 14% in the 2004/05 marketing year. Full version of the article on results of grain shipments from main Black Sea ports is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult. Meanwhile, Lenovo’s tablet shipments fell 13.5 percent during the crucial holiday season, which nonetheless was slightly better than the overall market, accord-

Ports & Shipping

port of oakland’s ports America files for bankruptcy

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OKALAND

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ing to market research firm IDC. IDC reported that tablet shipments worldwide dropped 13.7 percent in the fourth quarter compared to a year ago. Consequently, Lenovo maintained the 4.8 percent market share it posted a year ago even as the number of tablets its shipped fell from 3.7 million to 3.2 million. But the company, which ranked third among tablet makers in the third quarter, slipped to fourth in the fourth quarter as Amazon vaulted ahead with a 175.7 percent jump in shipments thanks to the popularity of its $50 Kindle Fire tablet. That inexpensive tablet “was the holiday season’s surprise hit,” IDC reported. IDC expects Lenovo to gain market share in 2016 based on the “savoir faire” of its Yoga, MiiX and Thinkpad brands. Lenovo, which ranks first in PCs and fourth in smartphones, is based in China but has a headquarters in Morrisville.—CB Report

he operator of the Port of Oakland’s second-largest terminal Oiled for bankruptcy Monday less than two weeks after it suddenly announced ceasing operations about seven years into a 50-year lease.

Ports America announced on Jan. 19 it would wind down operations at the port’s Outer Harbor terminal over the next 90 days, saying it wanted to concentrate on other West Coast ports. But in court Oilings Monday as Ports America Oiled for Chapter 11 bankruptcy protection, the

company said it has been operating at a loss for years in Oakland and is expecting to have difOiculty immediately paying its utility bills as it winds down its operations, estimated to be about $221,500 per month. For now, Ports America remains in the facility, still owes rent to the port and there is cleanup that needs to be done before it leaves Outer Harbor for good on March 31, Zampa said. The Port of Oakland has been left suddenly redirecting cargo from Outer Harbor to the port’s other four terminals. While they have the capacity to absorb the excess cargo they will need to make some efOiciency improvements to avoid backups, port spokesman Michael Zampa said Monday. “We’re still moving very aggressively to

redirect all the ships and containers to other terminals in the port,” Zampa said. “The goal as we’ve said all along is that no ships and no cargo leave Oakland.” Whether Ports America’s bankruptcy petition would negatively impact that process was not immediately clear, but port ofOicials said they were “disappointed” and that it indicates a lack of cooperation in the transition on the part of Ports America. “We’ve been negotiating with them in good faith for a smooth “We’ve been negotiating with them in good faith for a smooth orderly transition that protects the interests of shipping lines, cargo owners and others who depend on the terminal,” port executive director Chris Lytle said in a statement.

Thursday February 4, 2016

pak-iran ferry service to start in two months he government is making all necessary arrangements to start Karachi-Gwadar and Karachi-Iran ferry services within two months.

The services would provide comfortable and affordable travelling facility to the people and devotees of both the countries and also promote tourism and generate economic activity in the region. Prime Minister Muhammad Nawaz Sharif, during his visit to Port Qasim Authority (PQA) on December 28 last year had directed Pakistan National Shipping Corporation (PNSC), to expedite the work on start Karachi-Gwadar and Karachi-Iran (for Zaireen) ferry services. Following the directive, Ports and Shipping Federal Minister Kamran Micheal has taken initiatives to launch the service within two months, the spokesperson for Ministry of Ports and Shipping told APP here. Efforts were being made to strengthen ports and shipping sector in a proper manner, he said. The spokesperson further said that two more ships were being purchased to enhance business activity in the region. He said that a committee was established to ensure transparent procurement of more ships and in this regard, process of recommendation would be completed in next few weeks.

Currently, nine ships were operating in the area to carry out shipments to other ports and earning profit, the spokesperson said.—CB Report

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pelindo iii allocates $72.4m to renovate 7 ports

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JAKARTA

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tate-owned port operator PT Pelabuhan Indonesia (Pelindo) III has allocated at least Rp 1 trillion (US$72.4 million) to revamp seven seaports in the country’s eastern region. Pelindo III president director Djarwo Surjanto said three ports were located in East Nusa Tenggara (Kalabahi Port, Lorens Say Maumere Port and Waingapu Port), while one was in West Nusa Teng-

gara (Sape Port in Bima), two were in Central Kalimantan (Sampit Port and Kumai Pangkalan Bun Port) and another was in South Kalimantan (Kota Baru Port).

“Currently, those seven ports are in poor condition and unsafe [for passengers]. Maumere Port, for example, is located too close to cargo loading and unloading terminals and therefore it is unsafe. We have to relocate some passenger ports,” Djarwo said on the sidelines of the launch of the new Manyar Port in Gresik, East Java, over the weekend.

Separately, Pelindo III’s operational and business development director Rahmat Satria said the renovation work would depend on the availability of funds.

“If we are able to use a state capital injection [PMN] as initially planned, the renovation work at the ports could be completed in 2017. If we use internal cash, the renovations may take longer, until 2018 or 2019,” Rahmat said on Sunday over the phone. The company originally planned to use a state capital injection to Oinance the revamp. However,

as the House of Representatives has shelved some capital injections to state enterprises, the company may need to resort to other alternatives for Oinancing.

“We’re now trying to fund the project with internal sources to avoid interest-ridden funding as the seven ports are small ones and therefore the income being generated from them is relatively meager,” Rahmat said.

Besides the seven ports, the Oirm also plans to develop Benoa Port in Bali as a hub for cruises.

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Multan Customs impounds two smuggled vehicles MULTAN: The Customs Anti-smuggling Organization has seized two smuggled vehicles during an action. According to the details, the anti– smuggling squad impounded two vehicles near Sher Shah Toll Plaza Multan. Initially, the customs officials intercepted both the vehicles and demanded documents of customs clearance but the drivers could not produce the same.Therefore, a Suzuki Gemini and Toyota Hiace bearing registration number JAG-131/Quetta and MNW -6060 were impounded due to non-availability of import documents.

Thursday, February 4, 2016

CUSTOMS BULLETIN

peshawar Customs collects rs 11.55 billion in 7 months PESHAWAR NADir kHAN

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he Modal Customs Collectorate collected Rs 11.556 billion taxes during the Oirst seven months (July-January) of current Oiscal year 2015-16 as compare to Rs 10.868 billion collections made during same corresponding period of last year 2014-15.

According to ofOicial data available to Customs Today, the Peshawar Customs collected Rs 4.444 billion under the head of customs duty up to January 2016, showing 24.14 percent growth over the collection of last year that stood at Rs 3.579 billion. However, the net collection of custom duty remained Rs 4.179 billion as compare to the previous year’s net collection of Rs 3.292 billion.

In wake of sales tax on import, it collected Rs 2.872 billion as compare to the previous year’s Rs 2.871 billion and faced 9.38 percent decline. The net collection under the head of sales tax on imports remained Rs 2.713 billion against the previous year’s Rs 3.167 billion, while the difference in net collections has been recorded at 9.36 percent. It collected Rs1.359 bil-

lion sale tax levied as federal excise duty on palm oil against the previous year’s collection of Rs 1.777 billion.

The difference has been recorded at

23.48 percent. Under the head of sale tax value addition on commercial importers, it generated Rs 385.22 million against the previous year’s Rs

412.82 million, facing the 4.27 percent decline in collection. The federal excise duty on import was collected to the tune of Rs 141.23

million against the previous year collection of Rs 142.53 million and collected Rs 1.3 million less revenue than previous year.

Faisalabad Adjudication declares seizure of sofa cloth lawful FAISALABAD

NAeem SHeikH

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ustoms Adjudication Deputy Collector Asma Hameed issued ONO for outright conOiscation of 392 kgs of foreign origin sofa cloth in different colors by deciding the case in favour of ASO Sargodha.

As per details, Anti smuggling organization Sargodha had seized 392 kgs of smuggled sofa cloth

from a donkey cart during cursory search at a naka near satellite town chowk Sargoda. The donkey cart owner was identiOied as Jamil Akhtar. ASO team asked Jamil Akhtar to produce legal documents regarding this but he only showed bilty number issued by 786 super star goods forwarding agency. After investigation, ASO Sargodha has identiOied the owner of the smuggled goods name as Meer Alam Khan from Lahore and registered a case against him. The case was forwarded to Customs Adjudication.

Advocate Ghulam Murtaza ap-

peared on behalf of the respondent. He stated that the seized goods were purchased by the accused against sales tax invoice from the supplier who legally imported these goods.

Nazar Hussain inspector appeared and reiterated the charged leveled against the respondent.

The respondent has failed to establish a genuine link between import and himself with reference to his transaction.

As the sales tax invoice presented by the respondent is not reOlected in the sales tax returns of the relevant tax period of their

supply. The respondent has further not been able to bring any other documentary proof to their transaction. Therefor, D.C Asma Hameed ordered for outright conOiscation of the seized sofa cloth in favour of Federal Government under section 156(1)89(i) of the customs act 1969.

Meanwhile, The Anti Smuggling Organization (ASO) conOiscated a smuggled Mazda truck bearing Registration No. LES-585 and found 102 packages of (100 Rolls and 2 Bales) of Foreigin origin curtain cloth in different colors were being transported from

Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi

Rawalpindi to Faisalabad.

The smuggled cloth was seized under section 168 and 157 of the customs act 1969 along with mazda truck used for transporation of smuggled goods for violation of section 2(s) read with SRO 566(1)/2005 section 16 and 18 of customs act 1969.

The accused persons namely Nasar Khan provided three goods receipts having No. 004, 005, 006 along with photocopies of two GDs bearing No. 417/15. The descriptions of goods in the provided GDs were not matched with the recovered cloth.