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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

Daily

Vol 1 Issue No. 277

Karachi, Tue January 19, 2016

ISLAMABAD

M ARSHAD

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he Finance Ministry has made no commitment with the International Monetary Fund (IMF) to take speciUic tax measures to curtail Uiscal deUicit, sources said.

However, the Finance Ministry has taken a number of initiatives to Uinance small and medium-sized enterprises (SME) in the

country with an objective to promote this sector. Sources at the Finance Ministry told Customs Today that the government had been engaged in talks with the IMF for review of extended fund facility program since September, 2013. In this regard, a review is carried out by both sides on quarterly basis.

However, the Finance Ministry made no commitment with IMF to enhance or decrease the tax ratio on any item, but it had been lowering and in-

Price Rs. 14.00

creasing the tax rates in lieu with domestic Uinancial requirements or to bridge the revenue shortfall. Country faces revenue collection shortfall due to a number of reasons mainly lowering prices of petroleum products as well as increasing trade deUicit. The source said that Pakistan has entered in an arrangement with IMF under extended fund facility program since September, 2013. The agreement with the Fund is on the broader macroeconomic framework.

Collector Javaid orders M/s Fauzia Aftab to deposit Rs 5.3m evaded tax

Pakistan-China Business Opportunities Conference starts

Pakistan to become world’s 25th largest economy in 10 years: Ahsan

Multan Customs Intelligence seizes non-customs paid jeep

Stillwater Chamber of Commerce names new CEO

CustomsAdjudication-IICollectorChJavaid hasdirectedtheM/sFauziaAftabtopayduty | SEE PAGE 02 |

A five-day Pakistan -China Business Opportunities Conference will start | SEE PAGE 03 |

Ahsan Iqbal has claimed that Pak would become world’s 25th largest economy | SEE PAGE 04 |

The Customs Intelligence has seized a non-duty paid jeep worth Rs 3.5m | SEE PAGE 12 |

Stillwater Chamber announced the hiring ofTed Allison as the new President/CEO | SEE PAGE 09 |

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FIA arrests two notorious human traffickers Tuesday, January 19, 2016

National

LAHORE: The Federal Investigation Agency (FIA) on Saturday booked two human traffickers while conducting a raid in Gujrat.

According to the details, FIA anti-human trafficking cell conducted raid in Gujrat and arrested Nasir Arshad and Muhammad Umer those were allegedly involved in sending people abroad on fake documents and visas. The officials have recovered passports and currencies of different countries form their possession.

The accused persons have been sent behind the bars after registering a case against them.

Collector Javaid orders M/s Fauzia Aftab to deposit Rs 5.3m evaded tax

Federal Service Tribunal to hear 21 cases against FBR ISLAMABAD

NAEEM ULLAH TARIQ

KARACHI

AFTAB CHANNA

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ustoms Adjudication-II Collector Chaudhary Muhammad Javaid has directed the M/s Fauzia Aftab to pay duty/taxes to the tune of Rs 5.381 million, which it evaded on the import of titanium dioxide through mis-declaration. The collector imposed a Uine of Rs 500,000 while issuing Orderin-Original (ONO) No 137/2015-16 against the company.

According to the details, the Directorate of Post Clearance Audit (PCA) found that M/s Fauzia Aftab imported consignments of titanium dioxide by mis-declaring HS Code.

In the ONO, Collector Chaudhary Muhammad Javaid stated that chemical analysis report produced by the respondent clearly indicates that the goods are not amorphous and there is crystal growth as a definite particle size exists. Further the classiUication opinion of World Customs Organization clearly states that titanium dioxide of anatase type, not surface treated, falls under HS Code 3206.11.

In the light of the afore-stated facts, it is established that the respondent has mis-declared the classiUication of the titanium dioxide to get the undue beneUits and; therefore, the charges levelled in the show cause notice stand estab-

he Federal Service Tribunal will hear 21 cases on Monday submitted by employees of Federal Board of Revenue (FBR), including five female petitioners.

A division bench comprising Chairman Justice (R) Syed Zahid Hussain, and Member Muhammad Javed Iqbal Kasi would hear 15 cases. All of these cases were filed related to the promotion matter.

Five female petitioners, Sonia Anwar, Asra Farooq, Naila Ashraf, Mona Baqir, Syeda Urooj and male petitioners, Abdul Rasool, Shamsheer Seelre, Adnan Shahid, Abdul Karim, Hassan Mabroor, Altaf Memon, Ehsaan Ullah Khan, Kashif Khan, Abdul Hammed Mughsi and M Asim had prayed the tribunal to decide the matter of their promotions, which was, as they say, was not provided to them yet at FBR despite serving for several years.

Meanwhile, couple of other benches would hear FBR staffers’ cases filed by Saeed Ullah Khan, Amir Khan, Syed Sultan Abbas, Syed Asif Ullah, Rao Abdul Qayyum, and M Arshad Rahim.

lished. The subject goods should have been cleared under HS Code 3206.1100 instead of 2823.0010.

Therefore, in exercise of the powers conferred upon me under section 32(1) & 32(3) (A) of the Customs Act, 1969, the respondent namely M/s Fauzia Aftab are directed to deposit the duty/taxes amounting to Rs 5,381,944 into the government

treasury. A penalty of Rs 500,000 is also imposed on the respondent namely M/s Fauzia Aftab in terms of clause 14 of Section 156(1) of the Customs Act, 1969. Moreover, the department is also directed to scrutinize the data of the past clearance of titanium dioxide for determination of the fact that whether some evasion of leviable duties and taxes

has been effected through mis-declaration or mis-classiUication and take the appropriate measures as provided under law along with streamlining the process of future clearances of the subject goods under correct HS Code through a SOP devised by the department for the assessing ofUicers to avoid incorrect classiUications.

IHC dismiss petition against customs additional collector T

ISLAMABAD

NAEEM ULLAH TARIQ www.customsbulletin.com

he Islamabad High Court (IHC) has dismissed a petition lacking ‘question of law’ substantiating allegations against additional collector of the Customs Department. A division bench of the IHC comprising Justice Noorul Haq N Qureshi and Justice Athar Minallah decided the case submitted by M/s Win Pipe Industries (Private) Lim-

ited through Advocate Shaukat Ali Qureshi. The petitioner had Uiled the plea availing beneUits of Duty and Tax Remission for Export Scheme (DTRE) under which the material used to manufacture exporting goods was imported with paying duty and taxes.

The company had challenged a show cause notice issued to it by the additional collector customs for imposition of duty for importing pipes and steel tubes, etc. Customs department notiUication questioned

that why the imposition of duty could not be made when the company had imported raw material in ignorance of terms and conditions of DTRE. Moreover, the company’s counsel also submitted the ‘law question’ challenging additional collector customs’s jurisdiction to charge the due duty.

After hearing the argument and examining the records, the court dismissed the petition for lacking the merits and meaningless ‘question of law’. The judgment stated: “In the

light of evidences and discussion, we do not Uind any merits in the instant reference application which is, therefore, accordingly dismissed”.

The court also mentioned in the decision that the perusal of record and the impugned judgment, we are of the view that no question of law arises from the impugned order passed by the tribunal, nor question of law was pleaded and argued, before any of the forums below. Meanwhile, Islamabad High Court Division Bench adjourned hearing of

income tax references Uiled by the Oil and Gas Development Corporation Limited (OGDCL). IHC Division Bench comprising of Justice Shaukat Aziz and Justice Mohsin Akhtar Kayani heard and adjourned three income tax references by OGDCL against commissioner income tax of the Regional Tax OfUice (RTO).

OGDCL had Uiled the plea through advocate Nasim Sikandar who submitted the petition challenging RTO decision imposing a penalty of Rs 20 million over the said petitioner.

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Quetta Customs recovers smuggled jeeps KARACHI: Directorate General of Customs Intelligence and Investigation, during a crackdown, has seized smuggled jeeps and forged number plates.

Sources told Customs Today that the jeeps were being smuggled from Karachi to Afghanistan via Chaman border. Sources said that customs authorities received information about the smuggling attempt. The ASO team intercepted a truck and during searching process recovered two jeeps with forge number plates. When customs team asked the driver of the vehicle to produce legal documents regarding possession of jeeps but he failed to produce any relevant and legal documents.

LHC issued notice to parties on levy of services tax on incoming calls

Tuesday January 19, 2016

National

Pakistan-China Business Opportunities Conference starts

LAHORE

MUHAMMAD NAWAZ www.customsbulletin.com

he Lahore High Court (LHC) has issued notices to the parties and summoned their lawyers for arguments on formation of the Punjab Revenue Authority and imposition of services tax on incoming calls. The appellant approached the LHC, challenging the imposition of 10 percent service tax on incoming calls. In their petition, they said that the federal government had already receiving tax on mobile services and according to law the government could not impose any tax twice. The appealed to the LHC to declare the formation of Punjab Revenue Authority and imposition of services tax on incoming calls as null and void.

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Quetta Customs seizes Rs 0.5m foreign currency KARACHI

WAQAR AHMED ANSARI www.customsbulletin.com

irectorate General of Customs Intelligence and Investigation, in collaboration with Frontier Corps, has seized foreign currency equal to Rs 0.5 million and 10 laptops during a crackdown near Quetta.

Sources told Customs Today that a joint team of the Customs and FC raided a house and recovered UK pounds, US dollars and 10 smuggled laptops and arrested and a suspect from the scene.

Sources said that during a recently held meeting customs authorities and FC adopted a joint strategy to curb smuggling in the region and for this purpose they divided Quetta region into three divisions. Different teams are deputed to check the smuggling round the clock.

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ISLAMABAD

M ARSHAD

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Uive-day Pakistan -China Business Opportunities Conference will start from Monday (today). In this regard, the Chinese delegates have started arriving here to participate in this conference.

The Business Opportunities Conference is being organized by the Ministry of Commerce with the support of Board of Investment (BOI), Trade Development Authority of Pakistan (TDAP) and the World Bank. Minister for Commerce Khurram Dastgir Khan will inaugurate the conference while head of the Chinese delegation will deliver keynote address in the inaugural session. A well-placed source at Ministry of Commerce (MoC) told Customs Today that around 100 prominent businesspersons from China will actively participate in the conference to explore trade and investment opportunities in energy, infrastructure, textiles, agriculture, engineering, ICT and mining sectors.

Ministry of Commerce, LCCI and PBC has invited matching 100 to 120 eminent Pakistani business persons to the events in Islamabad, Lahore and Karachi, respectively. The delegation will then travel to Lahore where B2B sessions with prominent CEOs and senior executives of top companies headquartered in Punjab will be organized by Lahore Chamber of Commerce and Industry (LCCI). Punjab Government will arrange Uield visits

for the delegation to major industrial areas. At the last leg of the visit, the delegation would proceed to Karachi, where Pakistan Business Council (PBC), with support of Government of Sindh and TDAP, would host an event, which would include B2B sessions with premier Karachi based businesses. The concept papers available with Customs Today reveals background of the conference that China is Pakistan’s major trading partner with volume of trade reaching an all-time

Business Opportunities Conference is being organized by the Ministry of Commerce with the support of Board of Investment (BOI), Trade Development Authority of Pakistan (TDAP) and the World Bank

Tribunal decides tax evasion case in Huawei’s favour KARACHI

ABDUL REHMAN

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he Customs Appellate Tribunal has announced the decision in favour of Huawei Company in a tax evasion case made

by Pakistan Customs for evading million of rupees taxes on the import of machinery for installing 4G

setup. As per details, the company imported machinery for the setup and when it was grounded at the port for clearance, the customs demanded duty/taxes on the actual cost of the machinery but the company refused to pay. Later, a case was made against it that has now been decided in Huawei’s favour by the tribunal.

The Huawei imported machinery worth Rs 35 million that was sold to Pakistan Telecommunication Company Limited with the discount of

99 percent. It offered to pay tax on the cost on which it has given machinery to the PTCL. But the customs wants to get the taxes on the actual price and has decided to move the higher courts against the decision of the tribunal.

Sources said that Huawei can sale the equipments and machinery only to the PTCL under the agreement but it has sold the machinery worth Rs 55 billion to other mobile network companies by violating the agreement.

high of $ 12.299 billion in 2014-15.

The two countries signed the ChinaPakistan Free Trade Agreement (CPFTA) in November 2006, which became operational from in July 2007. Later, a Free Trade Agreement on trade in services was also signed in February 2009 and is operational since October 2009. Prior to signing of CPFTA the volume of trade between the two countries was in vicinity of $4 billion out of exports from Pakistan were $ 575 million.

FIA nabs member of human smugglers’ gang he Federal Invsetigation Agency (FIA) has arrested two brothers who are part of a gang which is involved in sending innocent people abroad through illegal channels. Sources told Customs Today that Director FIA Chaudhary Mazhar Ullah received secret information that some people are involved in human smuggling after which he formed a team which raided Asif Mobile Shop and arrested the suspects.

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Projects worth Rs 200m launched in Ghizer of GB Tuesday, January 19, 2016

Business

ISLAMABAD: The government has launched several development projects, in health, education, communication and tourism sector in district Ghizer, Gilgit-Baltistan to provide facilities to the locals.

Under the annual development program about Rs200m were being spent on ongoing projects including roads, Bridges, Health and education buildings across the district, reported Radio Pakistan. Work on widening and metaling of Ghizer road project was also in progress. Under the project main road was being widened and metaled from Ghizer district entrance point Beyarchi village to Damas, district Headquarter.

PSX plummets 373 points, down 1.25 in Monday trading As per details, the benchmark index slightly recovered afterwards to clock up at 30,153.42 points at 12:30pm, which is down 2.7 percent from the start of trading.

On Friday, Pakistan Stock Exchange Friday witnessed some fluctuation till midday, however, it remained in green zone as benchmark KSE-100 index added 51.44 points to reach 31492.46 points level.

High and low were 31001.49 and 29784.60 respectively. Total volume traded in the market was 142,730,880 shares.

KARACHI

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he Karachi Stock Exchange benchmark 100-index lost 373.09 points or 1.20 percent to reach 30628.40 points and volume of 142,730,880 shares on Monday.

The Pakistan Stock Exchange (PSE) plunged 1,216 points shortly after the start of the first trading session of the week.

Pakistan will continue to support AIIB: Dar

Pakistan to become world’s 25th largest economy in 10 years: Ahsan

ISLAMABAD

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akistan will continue to support China-based Asian Infrastructure Investment Bank (AIIB), said Federal Finance Minister Ishaq Dar, who is in Beijing to take part in the bank’s launching ceremony. The minister, who also attended the first meeting of the bank’s Board of Governors, hoped that the bank would work well together in conjunction with other development banks.

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LAHORE

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ederal Minister for Planning, Development and Reforms Prof Ahsan Iqbal has claimed that Pakistan would become world’s 25th largest economy in next ten years under Vision 2025.

Addressing the three-day Pakistan Coating Show (January 15-17) here at Expo Centre, he viewed that export sector had the key to achieve this goal and private sector’s role

was very crucial for expansion of exports. He cited, “Private sector is the key for progresses and without its active participation, all the economic development projects will remain incomplete.” The Federal Minister said, the China-Pakistan Economic Corridor (CPEC) project was a splendid gift and its successful completion could make Pakistan’s development irreversible.

Ahsan Iqbal said that Prime Minister Nawaz Sharif had already declared that CPEC was the project of the entire nation and assured that people of all the provinces – KPK,

Baluchistan, Sindh, Punjab, and FATA, AJK and Gilgit-Baltistan would beneUit from projects under the CPEC. He also assured that western provinces- KPK and Baloshitanwould not be deprived of the fruit of the CPEC projects, which would be game-changer and transform Pakistan into an economic hub for Afghanistan, Central Asian states and China. The Federal Minister said that 2016 had been declared as ‘Year of Productivity, Quality and Innovation’ and a comprehensive awareness campaign would be launched with focus on these three factors.

Corruption- and mafia-free system for BISP being introduced: Marvi KARACHI

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inister of State and Benazir Income Support Programme (BISP) Chairperson Marvi Memon has said that a corruption and mafia-free system is being introduced for the BISP. She said this while talking to the elected-representatives of the local bodies at the Pakistan Institute of Management. Marvi urged the local body representatives to serve the poor in collaboration with the management of the BISP. She said that the BISP would again conduct pilot survey in 16 districts in the country this year.

The BISP chief asked the representatives of the local bodies to supervise the process so that the mistakes of the past survey could not be repeated. She said that in the new survey there would be door-to-door exercise as well as self-registration process. The BISP chief said that they should also guide the people so that anyone deserving is left may be registered as our aim is to serve the poor masses. She also handed over a list of 95,000 individuals of Karachi to the city’s representatives in the presence of representatives of all the political parties.

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50,000t kinnow to be exported to Indonesia in Dec-April ISLAMABAD

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bout 50,000-ton kinnow will be exported to Indonesia during the current season (December 2015 to April 2016).

According to ofUicial sources, kinnow exports to Indonesia surged from $3 million in 2013 to $19.3 million in 2014, after coming into effect of the mutual recognition

agreement on sanitary and phytosanitary measures for agricultural products and grant of pest-free area recognition for Pakistan’s kinnow allowing entry through Tanjung Priok Port of Jakarta.

In addition, the waiver of customs duty on import of Pakistani kinnow under the Preferential Trade Agreement (PTA) has resulted in further increase of shipments.

The export of kinnow to Indonesia, thus, reached $23 million in 2015.

As per details kinnow consignments have started reaching in Jakarta, Indonesia, through Tanjung Priok Port and in Surabaya, with the Uirst consignment arrived in third week of December 2015.

The kinnow is being sold daily in wet grocery markets and all the leading hypher markets, super markets and retail chains including Carrefour, Ranch Market, Giant, Hypermart, Farmer’s Market, Food Hall and Lotte’ Mart of Indonesia.

Meanwhile, The government has decided launch cargo operation Uirst to pave the way for launch of the Uirst-ever green Uield airport, New Islamabad International Airport (NIIA). Soon after coming into power, the present government took up the challenge of new Islamabad Airport despite all the discrepancies of the past. It has directed the Civil Aviation Authority (CAA) to speed up completion of civil, mechanical and electrical work of the airport

this year. Minister for Planning, Development and Reforms, Ahsan Iqbal has already directed in a recently held high-level meeting to ensure provision of quality commercial activities in new airport because commercial facilities have become critical at modern airports.

He suggested for provision of international standards shopping arcades, cafes, restaurants facilities in new airport to attract transit passengers.

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Tuesday, January 19, 2015

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ISLAMABAD M FAIZAN www.customsbulletin.com

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he board of directors of the Pakistan Revenue Automation (Private) Limited (PRAL) has approved the payment of Rs 4 billion to legal advisors who provided services in M/s Agility in International Court of Justice. Sources told Customs Today that Chairman Federal Board of Revenue (FBR) Nisar Mohammad Khan presided over a meeting and approved the payment 75,000 pounds to British Firm M/s Black Stone Council, 1,50,000 pounds to M/s. Queen Council and 14,980 pounds to Eirik Bjorge of Jesus College Oxford.

The meeting also approved payment of Rs 2,500,000 to a Pakistani legal Uirm M/s Samdani and Qureshi. Sources said that the FBR spent this entire amount on legal services for the International Court of Justice.

It is pertinent to mention here that the FBR had already Uiled a plea in the International Court of Justice for reimbursement of all charges which occurred on pursuance of M/s Agility case.

Meanwhile, The Federal Board of Revenue will sign a memorandum of understanding (MoU) with International Road Transport Union (IRU) next week to ease and facilitate international goods trafUic on customs and related matters.

The MoU will support the establishment of international economic cooperation corridors and effectively strengthen trade links with key regional trade partners and with the rest of the world. The International Road Transport Union (IRU), founded in Geneva in March 23, 1948, with the objective to expedite the reconstruction of war-torn Europe through facilitated international trade by road transport. Presently, IRU is the world road transport organisation, which upholds the interests of bus, coach, taxi and truck operators to ensure

economic growth and prosperity via the sustainable mobility of people and goods by road worldwide. Moreover objective of IRU at the time of establishment was.

A well-placed ofUicial source at FBR told Customs Today, that draft of the said MoU had been Uinalized and sent to IRU for approval and would be signed most likely on Thursday. The source said that MoU would help FBR in holding dialogue with intergovernmental bodies, international organizations and all other stakeholders concerned by the road transport industry, including the public at large.

Moreover, MoU will result in enhanced cooperation with policy makers, legislators and opinion-makers, in order to contribute to informed and effective legislation, striking the right balance between the needs and interests of all. It will increase public-private partnerships with relevant authorities to implement legal instruments such as the TIR Convention under UN mandate or concrete transnational projects such as the reopening of the Silk Road. Furthermore the MoU carries provisions of practical services and information to road transport operators such as the latest fuel prices, waiting times at borders, secure parking areas, professional training, legislative developments, legal assistance, etc.

Similarly, concerned sectors will also be provided with the facility of training to promote professional competence in the sector, improve the quality of services it offers and ensure compliance of road transport training standards with international legislation, through the IRU Academy.

e evenuin R f o d l Boar led a plea t a r e d Fe lready fi al Cour has a nternation for the I of Justice of all t emen ccurred s r u b reim s which o M/s f e charg ursuance o e on p gility cas A

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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

Falling textile exports

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ccording to the Pakistan Bureau of Statistics, merchandise exports of the country have declined to $10.322 billion during the first six months of the current fiscal year from $12.058 billion during the same period last year. Percentagewise, the decline is recorded at 14.40 percent. The bureau finds a decline of 16.80 percent alone in December 2015 as compared to the previous fiscal year mainly due to bleak performance of the textile sector. Other sectors such as petroleum, jewellery, leather, engineering, furniture and cement also marked low performance and the government is coming up with a threeyear Strategic Trade Policy Framework plan to improve the situation. The government is looking for the reasons as to why exports of textile products have declined despite the provision of cheaper electricity and gas. The government will focus on actual consumption of cotton yarn by the textile mills in the country. On another note, trade deficit have also decreased by 1.35 percent to $11.924 billion from $12.087 billion in July-December 2014-15 as imports fell by 7.86 percent to $22.246 billion during July-December 201516 from $24.145 billion in the same period last year. However, trade deficit surged by 21.96 percent due to slightly increase in import bill during December 2015. Experts label the decline in import bill due to lower oil prices in the international market.

Textile is the main earning sector in the country and drop in the exports is a serious issue which is undermining the overall performance of the economy. The government has already offered cheaper electricity and gas to the textile units to lower the cost of production, but factors behind drop in textile exports have to be investigated and identified. The overall exports of the country stood at $23.9 billion during 2014-15, even lower than Bangladesh which has half of the volume of the economy as compared to Pakistan. At least 54 percent of the total shipments from Pakistan comprise textile and garments, but the country has only 4 percent share in the global textile exports. Bangladesh stands third in garments export in the world which is a point to ponder for the country’s policymakers, financial managers and trade experts.

Sales tax on service sector T

LAHORE

DR AFTAB AFZAL

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he Punjab government has decided to impose sales tax on 11 unregulated small businesses and service providers as the province is gradually heading towards corporate economy.

The government had initially decided to impose up to 16 percent sales tax on the service sector which the stakeholders had been resisting for the last one and a half years. Now the rate of the sales tax has been fixed between 5 to 14 percent, hoping a voluntary compliance of tax liabilities by a majority of businesses in this sector. The imposition of sales tax came on the recom-

mendations of the Punjab Revenue Authority under Section 10 of the Punjab Sales Tax on Services Act 2012.

The government has classified the service sector in two categories. According to a notification issued by the provincial finance department, the sales tax will be charged at 5 percent on individuals or the companies offering services, including dry cleaners, healthcare centres, gyms, hair-cutting saloons,airconditioned shopping malls, real estate dealers and builders, who undertake projects with an aggregate value not exceeding Rs 50 million in a financial year. According to another notification, the franchise services will be charged at 10 percent rate while

tour operators, travel agents, chartered accountants, auditors, actuaries, tax consultants, liquidators, auctioneers and corporate law consultants will be charged at 5 percent. The services provided to the textile, leather, carpet, surgical and sports goods sectors in respect of manufacturing or processing will also be charged at speciUic rates. As a matter of fact, collection of sales tax is very tricky business as some service providers are earning not in thousands, but in millions while many many others eke out a meager existence. The assessment of the annual income is linked with the ability of the government ofUicials and giving the present state of affairs, one can imagine the results of the whole

exercise. This exercise can lead to more chaos on the streets than cash in the government exchequer. The best option is that the government should classify business centers in various categories according to the revenue these centers generate in Uiscal year and then impose Uixed tax on every shop. It should be noted that not all the businesses generate taxable income and enblock imposition of sales will discourage the small business owners. The small business owners should also not be placed on the mercy of the government authorities in the given economic situation in the province and the country. The time is running out and the government has to resolve sales tax issue at the earliest.

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Turkish table grape exports hit by Russian crisis ANKARA: In Turkey’s grape growing region of Alasehir in Manisa, exports of the world-famous Sultaniye grape variety reduced 56 percent in 2015 compared to the year before. In 2014, 250,755 tons of Sultaniye grape were exported, in 2015 this fell to 143,156 tons. A large proportion of table grapes from Alasehir were sent to Russia; last year 106,748 tons of exports were made to the country. To other European countries just 36,407 kilograms of exports were realised. Alasehir chamber of agriculture chairman Necdet Turk explains, “In 2014 table grape exports especially increased. In 2014 the level of grape exports experienced an increase of 29% in comparison with the previous year, and then this suddenly fell by a close to 56% shock drop in 2015. The biggest factors which caused the drop were the hail and frost in the region followed by the Russian jet crisis.

The yield fell by 30% compared to the previous year.”

Stillwater Chamber names new CEO he Stillwater Chamber of Commerce announced the hiring of Ted Allison as the new President/CEO of the Stillwater Chamber of Commerce during the organization’s annual awards gala Friday.

In an a release sent earlier in the day, search committee chairman Larry Green said, ”Ted is bringing to the Stillwater Chamber the perfect background for this position with over 26 years in the economic development field, 18 years as a chamber president/CEO and 10 years as a small business owner and operator, mostly

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here in Oklahoma.” Allison was President/CEO of the St. Joseph Metro Chamber of Commerce for six years, managing a staff of 10 with a budget of $1.8 million. While he was in that position, the chamber achieved a five star rating from the U.S. Chamber of Commerce as one of the top chambers in the nation, a distinction earned by only 1 percent of the chambers in the county . Allison was also President/CEO of the Broken Arrow Chamber of Commerce for 11 years, Director of Business Development for the City of Tulsa-Rogers County Port Authority and owner and operator of Coldwell Banker Allison Real Estate in Shawnee, Oklahoma. He graduated from Oklahoma State University with a degree in business administration/economics.

He is a graduate of Economic Development and Chamber of Commerce Institutes and was awarded the Certified Economic Developer designation by the International Economic Development Council.—CB Report

Tuesday January 19, 2016

Chambers

Uzbekistan keens to enhance bilateral trade with Pakistan U

ISLAMABAD

CUSTOMS BULLETIN REPORT www.customsbulletin.com

zbekistan Ambassador Furkat A. Sidikov visited Islamabad Chamber of Commerce and Industry (ICCI) and said that his country was keen to enhance bilateral trade with Pakistan as both countries have good potential to promote trade relations in multiple areas. He said Pakistan and Uzbekistan enjoyed good political relations since long, but it was the need of the hour to strengthen bilateral trade and economic relations to achieve mutually beneUicial results.

He said Uzbekistan was manufacturing high quality tractors, agriculture machinery, heavy duty trucks and buses and stressed that Pakistani entrepreneurs should explore possibilities of importing these products from Uzbekistan that would help in improving agriculture productivity and transportation facilities in Pakistan.

He said Uzbekistan was energyrich country exporting its surplus power to Russia, China and Afghanistan and was ready to cooperate with Pakistan in overcoming its

energy woes. He said lack of direct connectivity and information about business prospects was the major reason of low volume of bilateral trade between Pakistan and Uzbekistan. However, he said direct Ulights will be started between Lahore and Tashkent in March this year that would greatly help in promoting bilateral trade between the two countries. He said ICCI should take a busi-

ness delegation to explore business opportunities in Uzbekistan and assured that his Embassy would fully cooperate to make its visit successful.

Speaking at the occasion, ICCI President Atif Ikram Sheikh briefed the Ambassador about investment potential in various sectors of Pakistan’s economy. He said Uzbek investors should explore joint ventures and investment opportunities in China-Pak-

SCCI chief extends felicitations to new Indian HC

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SIALKOT

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resident Sialkot Chamber of Commerce and Industry (SCCI) Maj (Rtd) Mansur Ahmed has greeted newly deputed Gautum Bambawale for assuming charge as the Indian High Commissioner at Islamabad. According to a press release, the SCCI President has extended felicitations to Gautum Bambawale on behalf of the whole business community and appreciated the efforts of diplomatic channel to strengthen relations between the two neighboring countries. He said that a new era of friendship and economic cooperation between Pakistan and India is shaping up which would indeed be beneficial for not only the two countries but the whole region. Emphasizing the

need of strengthening trade relations with India, President SCCI said that Sialkot Industry has had a strong trade link with India and it looks forward to further nurture this healthy relationship. Mansoor Ahmed also extended a warm invitation to Gautum Bambawale to visit Sialkot Chamber at any suitable time to discuss the aspects of growth in trade and business between the two countries and to share ideas for making progress in the best interest of both the nations bringing development, peace and prosperity in the region.

Meanwhile, The speakers, trainers and the stakeholders, stressed the need for promoting social media marketing and termed it an effective way to promote business in the global market. Small and Medium Enterprises Development Authority (SMEDA), organized a day-long training program for the

Sialkot based SMEs on “Social Media Marketing, tools, strategies and benefits” at Sialkot Chamber of Commerce and Industry (SCCI) here. Addressing the participants, the senior trainers Shafqat Jillani, Muhammad Faizan Akbar and Fouzan Muhammad said that Social Media is one of the most efficient means of marketing products and services in today’s highly interactive and competitive markets.

They said that it is increasingly becoming an essential component of a firm’s marketing and customer base development platform.

There is a growing importance of social media marketing among Small & Medium-Sized Businesses because of its cost-effectiveness, ability to reach targeted audiences quickly and broaden customer market and generate more sales / leads at domestic and global level, they added.

istan Economic Corridor which would create plenty of business opportunities for local and foreign investors. He said during the visit of Prime Minister of Pakistan to Uzbekistan in November 2015, the leadership of both countries had agreed to strengthen their ties by enhancing trade and improving connectivity which has created new hopes for businessmen of both countries.

APTA KP chapter rejects tax amnesty scheme ll Pakistan Traders Association Khyber Pakhtunkhwa chapter has decided to re-launch movement against withholding tax and rejected the tax amnesty scheme announced by the government. In a statement traders community said that the government should talk to real representatives of the traders. He rejected the tax amnesty scheme as fraud and said that the scheme was aimed at to benefit only the capitalists. He said that a convention of the all traders would be held tomorrow in Islamabad, which would take decision about future line of action. He said that the traders could go for shutter down strike in protest against withholding tax.—CB Report

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Nepalese sentenced for narcotics smuggling Tuesday January 19, 2016

World

BAHRAICH: A Nepalese national has been sentenced to 10 years imprisonment by a local court for narcotics smuggling. Additional Sessions Judge Suresh Chandra Bharti yesterday awarded 10 years imprisonment to Manshir Pujari. He was arrested by the SSB at Rupaideeha on Indo-Nepal border on November 2012 with three kg charas. The convict is a resident of Kanchanpur in Nepal. Meanwhile, Revenue collection from various customs points hit Rs 580 million on last week. It was the highest single day collection after the border blockade started from the third week of September. The revenue collected on Wednesday compares with collection figures during normal times, said Damodar Regmi, deputy director general of the Department of Customs.

Poland police seize 1.5 tonnes of illegal cigarettes in Pabianice

UK Customs seizes 4m cigarettes, tobbaco LONDON

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olice in Pabianice (Łódź region) seized 1.5 tonnes of illegal cigarettes in what can be described as a lucky break. Two people were arrested and taken to police station for questioning.

Following suspicious behavior, police in Pabianice tried to pull over the driver of a Fiat Ducato. Noticing the police patrol car, the driver of the van tried to take off, however, due to the driving skills of the ofUicers and high powered police cars, the chase was brought to a swift hold. Inside the van police discovered 1.5 tonnes of illegal cigarettes.

Authorities estimate that the potential damage to Polish customs at 670 thousand PLN. The two suspects, two men aged 25 and 50, were taken to a police station for further questioning.

Customs agents at airport busted for taking bribe esidency Affairs detectives arrested two employees at the airport for their involvement in enabling wanted persons and those with travel bans to leave the country in exchange for money.

Both confessed to the charges. The arrest was made following information about the suspected activity. A wanted person was sent to them and an agreement was made to help him leave in exchange for KD 2,000. Both were arrested in the act. Meanwhile, An Indian expatriate smuggler was arrested in Fahaheel area in possession of 167 bottles of locally manufactured liquor. According to security sources, Ahmadi securitymen were patrolling Fahaheel area late night when they stopped a vehicle for inspection and discovered that it was driven by an Indian expatriate.—CB Report

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If being charged and convicted, they could face up to three years imprisonment.

Meanwhile, Polish police says they have seized a record amount of cocaine worth around $27 million US that arrived via Belgium in a shipment of bananas from Colombia. Warsaw police spokesman Mariusz Mrozek said Monday that the haul of 178 kilograms of 90 per cent pure cocaine was seized near

the capital city on Saturday, hidden in a truckload of bananas.

Mrozek said that the police have arrested a 40-year-old Pole who drove the truck from Belgium, where the shipment arrived by sea.

Police are investigating oher people who were involved in the illegal shipment and also to determine whether the cocaine was destined for Poland or another country.

Indian police seize red sanders worth Rs 30 million

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he Nimmanapalle police on Saturday arrested three persons while they were trying to dispose of red sanders logs near the Bahuda project in Madanapalle division on Saturday. Speaking to reporters, Nimmanapalle Sub-Inspector Mr. Harihara Prasad said: “A couple of years ago, a landlord at Agraharam village had felled red sanders trees in his Uields with the permission of the Forest Department and stocked them on the

premises of his bungalow.

“Over the years, during his absence, as he was away in Hyderabad, some miscreants took away several logs worth over Rs. 1 crore, leaving just 27 of them. Though he had tried to hand them over to forest ofUicials, it did not materialise for various reasons.”

He added that the landlord had kept the remaining logs in a safe corner of his bungalow on the advice of ofUicials. —CB Report

our million cigarettes have been seized during a campaign against the illegal tobacco trade. A network of trading standards teams across the East Midlands teamed up with HM Revenue and Customs, police and the UK Border Force two years ago to track down people selling fakes and real products on which duty had not been paid. In that time, the groups said, they have made signiUicant seizures – including a total of two tonnes of rolling tobacco – and arrested more than 100 suspects.

The groups said the regional partnership was the key to their success. The seized cigarettes and tobacco equate to a loss of about £1.5 million in tax revenue. The largest single seizure in the past two years was in Leicestershire,

when ofUicials recovered threequarters of a tonne of rolling tobacco. OfUicials are targeting rogue retailers, as well as individuals who operate from their home or pub.

The campaign is funded by trading standards and Public Health. Mark Walker, chairman of Trading Standards East Midlands, said: “By working closer and in partnership with other enforcement agencies, we can do more than simply ploughing our own furrow. The results how true this is.” Chris Kenny, chairman of East Midlands Directors of Public Health, said: “Reducing the availability of cheap, illicit cigarettes will reduce their availability to children and therefore the likelihood that they will become hooked on smoking. “That’s why we are keen supporters of this project.”

A Leicester shop owner, who did not want to be named, told the Mercury last year the trade in illegal tobacco had hit his sales. He said: “We know the illegal market is huge and is a big reason for the drop in sales.

US Customs seizes $200K in drugs at Rio Grande Valley Bridges

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S Customs and Border Protection, OfUice of Field Operations (OFO) at the Hidalgo and Anzalduas International Bridges arrested two men after detecting $198,000 worth of alleged cocaine and methamphetamine hidden within the vehicles they were driving.

“As smugglers continue with their efforts to introduce illegal narcotics into the United States, our frontline ofUicers’ resiliency and determination to combat those illicit activities and keep those dangerous drugs from entering our country continue

as well,” said Port Director Efrain Solis Jr., Hidalgo/Pharr/Anzalduas Port of Entry. On Jan. 8, CBP ofUicers at the Hidalgo-Reynosa International Bridge referred a white 2008 Ford Explorer driven by a 38-year-old man from Lake Worth, Florida for a secondary inspection. With the assistance of a canine team and a nonintrusive imaging system, ofUicers discovered nine packages of alleged cocaine concealed within the Ford SUV. CBP OFO seized the $160,000 worth of narcotics and seized the vehicle as well.—CB Report

Turkey moves to expand Customs union with EU

M ANKARA

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onths after agreeing with Brussels to upgrade a decades-old Customs Union, Ankara has moved towards implementing practical steps that would bring the economies of Turkey and the European Union closer together.

“We will be sitting around the table for negotiations probably by September,” Turkey’s Economy Minister Mustafa Elitaş recently said, while also setting the end of 2017 as a prospective date for completing these negotiations for revision of the Customs Union agreement with the EU. Economy administration has intensiUied work on expanding the deal, particularly in the Uields of en-

ergy, tourism, communication and contracting business. The Economy Ministry has speciUied content in regards to sectors and accordingly, it plans the inclusion of 10 new Uields such as energy, tourism, communication, contracting business, agricultural products, service trade, public purchases, environment, taxes and transportation within the framework of the revised deal. Economy Min-

istry bureaucrats, meanwhile, have been conducting an update that is aimed at Uinding solutions to currently problematic Uields in the existing Customs Union agreement.

Upon Uinalizing the work, the ministry will draft a review report that outlines alternative scenarios involving content and rules of the probable Turkey-EU Association Council decision on the issue.

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Nepal keen on routing cargo through Vizag Port KATHMANDU: A Nepalese trade delegation with Visakhapatnam Port Trust Chairman M.T .Krishna Babu in Visakhapatnam.

Steps would be taken to declare Visakhapatnam Port as an alternative EXIM gateway for Nepal, a trade delegation from that country announced.

The delegation was impressed by the facilities available at the Visakhapatnam Port and the assurance of being allocated a separate yard to facilitate customs handling.

The delegation was led by Minister for Commerce Deepak Bohara, Nepal Ambassador Deep Kumar Upadyaya, and Joint Secretary Pokhral.

Small ports seek $48m in federal funding orts in the Northwest are waiting to see if the nation’s budget will include funding for small ports that often struggle to obtain federal dollars. The Northwestern congressional delegation advocated that the President’s Fiscal Year 2017 Budget set aside roughly $48 million to maintain jetties and the channels leading to small ports. The funding would include Pacific County’s Port of Ilwaco and Port of Chinook.

The budget plan is expected to come out on Feb. 1. A letter signed by Oregon’s U.S. Sens. Ron Wyden and Jeff Merkley and Washington’s Patty Murray and Maria Cantwell asked the U.S. Office of Management and Budget to recognize the needs of small ports.

“Despite the Administration’s responsibility to fund these projects, small ports throughout the Northwest continue to be routinely overlooked in

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budget requests and remain chronically underfunded,” the senators wrote. The Pacific Northwest Waterways Association (PNWA), a regional, multi-industry association that focuses on trade, navigation and economic development policies, asked for $2.1 million for the Port of Ilwaco out of the requested $48 million. PNWA also requested $800,000 for the Port of Chinook. Port Manager Guy Glenn said $700,000 of the funding would go toward a major maintenance report on the Ilwaco channel pile dikes.

The report could identify what is causing the increased siltation of the port’s channel, Glenn said. Glenn said he believes the navigation pile dikes, which help funnel water through the channel, are failing. The failure may also be connected to the Port’s consistent dredging needs to maintain safe water levels, he said. —CB Report

Ports & Shipping

US: Two largest seaports see mixed trade in December

WASHINGTON

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he nation’s two largest seaports saw mixed performances in December, ending a wildly erratic year on the U.S. West Coast on a mostly Ulat note. The neighboring ports of Los Angeles and Long Beach reported combined December import volume that was just 0.7% greater than the same month in 2014 and 0.6% more than December 2013. The muted close to the year came as broad U.S. trade Uigures are slipping and shipping volumes suggest companies are slowing down investment. Many of

the nation’s ports, including L.A., reported weak volume during the traditionally-busy months leading into the holiday season, which analysts have attributed to overly high inventory levels among retailers and manufacturers. The Port of Long Beach, second to Los Angeles in U.S. container volume, said imports were up 7% over December 2014 to 296,002 20-foot equivalent units, a standard measure for container cargo. Exports fell 4.1% in December to 126,118 TEUs compared to the same period in 2014. For the year, total container volume at Long Beach was up 5.4%, a strong performance in a year where congestion clogged the Southern California ports for months—driving volumes far below their usual levels

in January and February. Congestion hit shippers as early as December of 2014, which may have contributed to the port’s strong yearover-year growth for those months in 2015. The Port of Long Beach handled a total of 7,192,066 TEUs in 2015 with imports up 3.1% and exports down 4.9%. Analysts have attributed the decline in exports to weak foreign markets for U.S. goods and the persistent strength of the dollar. Next door, the Port of Los Angeles reported that import containers declined 4.5% in December to 321,407 TEUs from the year before, while exports fell 13.7% to 131,239 TEUs. The L.A. port said in a statement that one of its cargo terminals was ofUline during December and that contributed to the decline.

Sri Lankan port project gets nod

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COLOMBO

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he delayed Colombo Port City project, a plan to create a South Asian Uinancial hub, has been given the green light, the Sri Lankan ambassador to China conUirmed on Friday.

The $1.4 billion urban complex project will cover 233 hectares adjoining the Port of Colombo. The deal was signed between the Sri Lankan government and the China

Communications Construction Co in November 2013. “We feel Colombo is ideal for a South Asian Uinancial hub,” Ambassador Karunasena Kodituwakku said in an interview with China Daily. The location of the project will help connect businesses from India, Sri Lanka, Myanmar, Bangladesh, Pakistan and Singapore and the Middle East, he said. The Colombo Port City is one of China’s key projects along the 21st Maritime Silk Road. “The most important South Asian port” under the initiative “will be a port in Colombo or

another port in Sri Lanka”, said the ambassador. Colombo Port City will become “a high-end urban complex in South Asia concentrating industries, including Uinance, tourism, logistics and information technology”, and the whole project will create more than 80,000 jobs, according to the Chinese Embassy to Sri Lanka.

However, the Sri Lankan government suspended the project in early 2015 after Maithripala Sirisena became president. A greater environmental impact assessment to allay public concern was needed, which

Tuesday January 19, 2016

Oil shipments enhance Rotterdam port ONDON 2015 was a record year for Rotterdam port, with throughput rising almost 5% to 466 million tonnes, the port authority said on Friday. The growth was almost entirely due to an increase in the shipment of crude oil and oil products. ‘The low oil price has led to higher refinery margins and that in turn has led to an increase in shipments to refineries,’ port chief Allard Castelein said.

Castelein also said he expects to reach agreement on jobs with port unions within the next eight weeks. ‘We are in talks and they are constructive,’ he said. ‘I do not expect any more strikes.’ Last week, port workers went on strike for 24 hours in support of their campaign for job guarantees. Meanwhile, first crude oil shipment exported from the United States, after a 40 year ban, left from Corpus Christi, Texas last Thursday. NuStar Energy and ConocoPhillips loaded a vessel with light crude oil pumped from the Eagle Ford Shale of South Texas at NuStar’s North Beach Terminal at Port Corpus Christi. The crude is to be sold to the international trading company Vitol. “Infrastructure improvements at Port Corpus Christi have placed our port in a unique position as a critical component in the export of U.S. crude and condensate. Port Corpus Christi’s deep draft ship channel and strategic location to some of the largest production areas in the US provides a secure and competitive supply chain to markets worldwide,” John LaRue, Port Corpus Christi Executive Director, said in a statement. —CB Report

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was “not the fault of the Chinese company”, Kodituwakku said. The construction project’s “incremental environmental impacts” were assessed as “minimal/negligible at the reclamation site and the coastal zone to the North and South of the site,” said an environmental impact report released in December by the Sri Lankan Coast Conservation and Coastal Resource Management Department. “The project will create employment. It will create tax income and indirect opportunities for other services.

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Faisalabad Excise generates Rs 0.877m through auction FAISALABAD: The Excise and Taxation Department has generated Rs 0.877 million through auction of motorcycle numbers.

Sources told Customs Today, that the Motor Registration Authority (MRA) held an auction for the sale of motorcycle registration numbers.

During the auction, 257 motor cycles registration numbers attracted suitable bids and collected Rs 0.877 million. While the remaining registration numbers were rejected by the competent authority due to the lower offers.Excise Faisalabad sold no. 1 for Rs 35,000.

Tuesday, January 19, 2016

CUSTOMS BULLETIN

Customs Preventive seizes 8,300 bottles of alcohol from Hawke’s Bay Road KARACHI AFTAB CHANNA

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ustoms Preventive Drug Enforcement Cell has seized two trucks containing around 8,300 bottles of foreign liquor. According to details, the staff of DEC-East Wharf seized two trucks from Hawke’s Bay Road and during checking the Customs staff recovered 8300 bottles of foreign liquor. The Customs spokesman informed that the trucks drivers have been under custody of Pakistan Customs and investigations are being carried out into the case.

The spokesman further said that the details of the seizure would be disclosed in a press conference in upcoming days.

Meanwhile, In a bid to thoroughly investigate the recovery of containers of NATO/ISAF in city’s outskirts yesterday, Collector Customs Preventive Syed Tariq Huda has constituted a high level committee to reach the logical end. It is mentioned here that Model Customs Collectorate Preventive raided godowns in Mauripur area and recovered pilfered/missing containers of NATO/ISAF/US Army reverse

cargo. The sources told Customs Today that Collector MCC Preventive Syed Tariq Huda has formed a committee headed by Assistant Collector

(Headquarters) Syed Muhammad Raza Naqvi that would investigate the matter and submit a detailed report. While ten senior ofUicials of the

preventive services would assist the AC. While, the committee would function under the supervision of Additional Collector Khalid Hussain

Jamali, sources added. The sources told that further investigation were underway and it would be premature to point Uinger at anyone.

Customs Intelligence-Enforcement seizes items worth Rs 504m KARACHI

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irectorate General Custom Intelligence and Investigation-Enforcement conUiscated various contraband items worth Rs 504.51 million and arrested seven suspects during the Uirst six months (July-December) of current Uiscal year 2015-16.

According to the details, the Customs Intelligence while con-

ducting different raids clutched different items, including pilferage goods from ISAF consignment, poppy seeds, mix metal scrap, sea salt, polyester enamel, copper busbars, photo electric error controller, Beach Buggy bike, micro computer, cell phones, memory cards, laptops, Apple pencils, inverters, assorted yar, aluminium caps, LED lights and other smuggled goods. Besides, seven persons allegedly involved in smuggling were also arrested and their challans were submitted in the Customs Court. The seizure reports of the cases have also been sent to

adjudication concerned.

Responding to a query, Customs Intelligence-Enforcement Director Muhammad Yaqoob Mako conUirmed the seizures and informed that the anti-smuggling operations will be continued following the directions of Director General Imtiaz Ahmad Khan. He further said that numbers of godowns located at different parts of Karachi were also raided in order to recover smuggled good causing loss to national exchequer. He further told that the teams of Customs Intelligence-Enforcement conducted raids under the supervision of Ad-

ditional Director Touseef Amaan.

The team comprising Assistant Director Amjad Rajper, Superintendents Zafar Iqbal, Ilyas Ahmed and other ofUicers participated in the raids. Meanwhile, Customs Appraisement-South Chief Collector Abdul Rashid Sheikh has announced that the Uiling of transshipment (TP) goods declarations (GDs) through Web Bases One Customs (WeBOC) system for Less than Container Load (LCL) cargo shall be mandatory with effect from February 1, 2016. According to the notice issued by the chief collector, though the facility is al-

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ready available, Uiling of TP GDs through WeBOC system for LCL cargo shall be mandatory with effect from February 1, 2016. “In order to streamline and improve operations relating to the transshipment scheme, a module for LCL transshipment cargo has been developed and deployed in WeBOC system on December 15, 2015, which is ready for use,” it added. “This module will allow transshipment of LCL cargo from on-dock and off-dock terminals of the Model Customs Collectorate Appraisement-East, Appraisement-West and Port Qasim.