Jan 20 layout 1

Daily on www.customsbulletin.com

Find us on

pAkiStAn’S fiRSt inDeptH newSpApeR on cuStoMS

Daily

Vol 1 Issue No. 278

Karachi, Wed January 20, 2016

ISLAMABAD

M ARSHAD

www.customsbulletin.com

M

ember Customs of the Federal Board of Revenue Nasir Masroor Ahmad ruled out assumptions about any hurdle in transit trade for China through Pakistan.

While speaking in a question and answer session on the Nirst day of a Nive-day PakistanChina Business Friend-

ship Conference, he said that there was no hurdle either from the Federal Board of Revenue (FBR) or any subsidiary department in the passage of the transit goods for China.

“Actually, there is no need to sign a transit trade agreement with China because of the fact that transit trade agreements are signed with those countries which don’t have access to sea or are without seaports (landlocked countries), however, China has huge and long shore as well a

Price Rs. 14.00

number of seaports along the South China Sea,” he clariNied.

However, he said that quadrilateral transit trade agreement would be possible with other countries like Uzbekistan, Tajikistan lying ahead of China.

To a question, he said that Sust check point was started with lesser facilities; however, today it had been converted into a dry port with modern facilities for trucks carrying trade goods from Pakistan and China to each other country.

FTO rejects petition claiming compensation of Rs 2 million

Customs Valuation determines values of metallic yarn

Pakistan to continue support AIIB: Minister Ishaq Dar

Multan ASO impounds three vehicles worth Rs 3.4 million

Need stressed for focusing on Bulgaria to promote exports

The FTO has dismissed a complaint, seeking compensation for the mental | See pAge 02 |

DG, Customs Valuation has determined the customs values of metallic yarn vide | See pAge 03 |

Pakistan will continue to support China-based AIIB, said Minister Ishaq Dar | See pAge 04 |

The Custom ASO has impounded three non-customs paid vehicles worth Rs 3.4 m | See pAge 12 |

Pakistan Ambassador-designate to Bulgaria A.S.Babar visited ICCI | See pAge 09 |

2

www.customsbulletin.com

FBR recovers Rs 1.7m sales tax from Al-Riaz Foundry Wednesday, January 20, 2016

National

KARACHI: The Federal Board of Revenue (FBR) has recovered Rs 1.7 million from AlRiaz Foundry under the head of sales tax. The foundry is located in Gulbai area. The Regional Tax Office-II has also issued a notice to M/s. Anum Textile which is allegedly involved in tax evasion.

Additional Commissioner Regional Tax Office-II Mujahid Rana told Customs Today that Al-Riaz Foundry was involved in tax evasion amounting to Rs 2.2 million. The RTO issued them many reminders, asking them to clear their outstanding taxes but the company always avoided to pay taxes.

fto rejects petition claiming compensation of Rs 2 million

customs seizes poppy seeds, sea salt worth Rs 8.387 million KARACHI

ABDuL ReHMAn

ISLAMABAD

nAeeM uLLAH tARiQ

www.customsbulletin.com

www.customsbulletin.com

C

T

he Federal Tax Ombudsman (FTO) has dismissed a complaint, seeking compensation for the mental agony the importer endured allegedly due to the seizure of the imported items on the order of a customs ofNicial.

M/s Al-Hmara Trading Company had Niled the petition praying for compensation of Rs 2 million for extra demurrage, container rent and suffering from mental agony due to the seizures. The company had made compensation claim after Pakistan Customs Deputy Collector Muhammad Ashfaq had seized imported sulphur clay and sulphur powder worth Rs 3.137 million involving duty/taxes to the tune of Rs 577,602- as the importer had misdeclared the value as Rs 1.042 million per unit. The claim was made following dismissal of deputy collector’s decision by the Customs Appeals collector who stated that deputy collector’s decision of conNiscating the goods was incorrect.

The FTO rejected the compensation claim made by the complainant and closed the case terming it without any legal grounds and being devoid of merit. The FTO decision reasoned that the customs ofNicer has not committed negligence; therefore the claim about compensation did not

ustom Enforcement has seized 1362 bags of poppy seeds and 680 bags of sea salt. The market value of recovered goods is worth of Rs 8.387 millions, it has learnt here.

According to details, after receiving a secret information about smuggling of poppy seed to Malaysia through mis-declaration Director Enforcement Muhammad Yaqoob Mako, Additional Director Touseef Amaan and Assistant Director Amjad Rajper formed a team headed by Deputy Superintendent Ilyas Ahmed, Inspector Sauood-ul-Hassan, Shahid Khan, Saeedur Rehman and Rasheed Aalam examiner at Port Qasim.

The customs team examined a consignment booked by M/s.

Shah Plastic Industry which was being sent to Malaysia in the grab of sea salt through mis-declaration.

The customs team recoverd 1362 bags of poppy seeds and 680 bags of sea salt from the consignment. The customs team seized the consignment and registered a case against the owners of the consignment.

hold grounds. Meanwhile, The Federal Tax Ombudsman, Abdur Rauf Chaudhry has appointed as many as 16 dealing ofNicers for entertaining taxpayers’ complaints which were being Niled consistently at FTO ofNice.

FTO and the other concerned ofNicers are dealing in complaints related to income tax, sales tax, federal tax, cus-

toms and contempt proceedings.

Muhammad Yasin Tahir, Muhammad Munir Qureshi, Haji Ahmed, Justice (Retd) Muhammad Nadir Khan, Asaf F Vardag, Manzur Hussain Kureshi, Sardar Irshad Shaheen, Arshad M Cheema, Razia Sultana Tahir, Muhammad Younis Khan, Umar Farooq, Imtiaz Ahmed Barakzai,

Muhammad Siddique, Ibrar Ahmed Khan and Afzal Nau Bahar Kayani are the members hearing and deciding complaints other than the FTO. These ofNicers were performing their duties at FTO headquarters in the capital city, Islamabad and regional ofNices in Karachi, Lahore, Quetta and Peshawar.

pM for concrete measures to enhance volume of exports: Dastgir

P

ISLAMABAD

M ARSHAD

www.customsbulletin.com

rime Minister Nawaz Sharif has directed the Ministry of Commerce to take concrete measures to enhance volume of exports. Sources told Customs Today that about six months ago, the ministry had moved a package of proposals to the Prime Minister’s House to increase the volume of exports under the Strategic Trade Policy

Framework (STPF) 2015-18.

In this regard, MoC moved a package of concrete measures which included mobilization of foreign trade wing for services in the Ministry of Commerce, activation of Services Trade Development Council and set up a special task force for the development of E-commerce to enhance the share of services’ sector’s exports. Presently, services sector contributes 54 percent to the economy but export of services of Pakistan is very low. Our services

exports stood at $5 billion in 201112 whereas the global trade in services was $18.2 trillion.

The package also includes a number of measures for Revamping Export Promotion Agencies (EPAs) and Trade Monitoring Committee because EPAs are under-resourced and not tuned to modern challenges of export promotion.

Therefore, MoC has proposed overhaul trade ofNices abroad by providing both Ninancial and improved human resource after carry-

ing out a performance analysis.

Trade OfNicer and local based Trade Development OfNicer (TDO) will spend 15 days in Pakistan to work closely with supply side institutions and exporting Nirms.

Performance Evaluation Report of Trade OfNicer will be jointly initiated by the ambassador and regional trade ofNicer and countersigned by Secretary TDAP and second countersigning by Secretary Commerce. In countries where there is a single trade ofNicer, the PER will

be initiated by an overall regional trade ofNice which is proposed to be established to complement the regional dimension.

Realizing that trade ofNices abroad do not work in isolation as their performance also depends on the performance of the institutions like TDAP, Pakistan Horticulture Development and Export Company (PHDEC). The Commerce ministry will develop and implement an entity improvement plan for both the organizations.

3

www.customsbulletin.com

Excise DG recommends increase in travel allowance LAHORE: Excise and Taxation Director General Akram Ashraf Gondal has asked the Excise secretary to make the travel allowance of officers and employees equivalent to the employees of the customs and police. Officials said that travel allowance has not been revised after it was fixed in 1974, adding that a constable received Rs 30 allowance per month, inspector received Rs 75 per month and excise and taxation officer was given Rs 150 per month. The DG has asked the authorities concerned to increase the travel allowance for constable from Rs 30 to Rs 5000, for inspectors from Rs 75 to 7500 and for ETOs from Rs 150 to 12,500.

iHc to hear petition seeking reimbursment of Rs 80 million

Wednesday January 20, 2016

National

customs Valuation determines values of metallic yarn

ISLAMABAD

nAeeM uLLAH tARiQ www.customsbulletin.com

slamabad High Court will hear a writ petition seeking reimbursement of Rs 80,000,000 (Rs 80 million) from chief commissioner, Islamabad. IHC single bench comprising Justice Aamer Farooq would hear the petition filed by Defence Housing Authority (DHA).

In its submission, the petitioner had prayed the court to help it in regaining the said amount. The petitioner also mentioned that a similar plea was dismissed by the chief commissioner. Hence, the honorable court may decide the matter and help DHA to getting their amount back, petitioner stated.

I

Rtos gathering data of non-taxpayers LAHORE

MuHAMMAD nAwAZ www.customsbulletin.com

he Regional Tax Office-I and II (RTO-I&II) of the Federal Board of Revenue (FBR) are gathering data of businessmen who have not filed their tax returns despite having taxable income.

According to details, FBR Chairman Nisar Muhammad Khan has directed all field formations across the country to collect the record of their hidden assets and income.

Officials said that the FBR wanted to add almost 500,000 new taxpayers into the tax net.

The officials added that chief commissioners of both RTOs have constituted teams those have started to gather the data of non-filers. The further said that RTOs would get help of banking sectors and different ministries to trace the defaulters.

T

KARACHI

AftAB cHAnnA

www.customsbulletin.com

T

he Directorate General, Customs Valuation has determined the customs values of metallic yarn vide Valuation Ruling No 796/2016. The values were determined under section 25-A of the Customs Act, 1969.

According to details, several importers approached the Directorate General for revision of Valuation Ruling 377/2011 dated 27-9-2011 of metallic yarn since it was more than four years old and the prices in the international market have declined. It was, therefore, deemed expedient to initiate working for the subject item.

A meeting of the stakeholders was attended by the representatives of PYMA (Pakistan Yarn Merchants Association), local manufacturer M/s Brightex Industries, commercial importers and clearance Collectorates. M/s Lorex Industries, a leading manufacturer of metallic yarn, was also requested and later reminded by telephone to attend the same but they abstained from attending the meeting.

The requisite documents were submitted by only one importer M/s Saleem Winding Works, Karachi hence the same could not be deemed a representation of all commercial importers.

The local manufacturer, M/s Brightex Industries argued that the

customs values determined Valuation Ruling No 377/2011 dated 27.9.2011 were fair and reNlective of international prices even at the present time and in support of their arguments submitted clearance data whereby importers have themselves declared prices of metallic yarn ranging from $ 5.2/kg to $ 6.0/kg. The representatives of yarn merchants argued that the prices of basic raw material i.e. PET have considerably declined over the past few

A meeting of the stakeholders was attended by the representatives of pYMA (pakistan Yarn Merchants Association), local manufacturer M/s Brightex industries, commercial importers and clearance collectorates.

peshawar customs seizes drugs, electronic items KARACHI

wAQAR AHMeD AnSARi www.customsbulletin.com

D

irectorate General of Customs Intelligence and Investigation Peshawar recovered 18 kilograms of hashish during a crackdown.

Sources told Customs Today that Customs Peshawar received secret

information regarding some smuggling attempts after which they constituted a team. The Customs team intercepted a Suzuki pick-up and recovered 18 kilograms of Nine quality hashish and arrested the driver. During another crackdown, the Customs seized 10 DVD players, 7 LED TVs and other smuggled electronic accessories from a vehicle which was parked just in front of Gulzai Electronics Shop. Customs team arrested an accused who was identiNied as Safdar Khan and seized the smuggled

electronic goods. Meanwhile, 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.

months, therefore, the values of metallic yarn should accordingly be reduced. Instead of furnishing any documentary evidence about downfall in prices of the metallic yarn in the international market, they relied upon their rhetoric of decline in international prices.

According to Valuation Ruling, the customs values for metallic yarn would be assessed to Clearnace and Forwarding value to be imported from China at $ 5.50/kg.

customs court hears 15 cases he Special Court of Customs Taxation and Anti-Smuggling heard 15 important cases on Monday and issued orders of judicial remand of an accused involved in a smuggling case. As per details, 15 cases of different types, including pre-arrest bail pleas filed by Muhammad Akhtar Rasool, Israr Hussain, Abdul Rehman and Shahrooz were scheduled for the day.

T

4

www.customsbulletin.com

PM’s youth development programme supporting women Wednesday, January 20, 2016

Business

FAISALABAD: The Prime Minister Youth Skills Development Programme is an important step of the government which is helping women to earn their livelihood with honour. This was stated by Regional Director National Vocational Training Commission Hajji Muhammad Dogar while presiding over a meeting at Social Welfare Complex of Sanatzar. He said all arrangements were being finalized to implement 3rd phase of PM Youth Skills Development Programme, adding that a number of courses would be offered for females under this programme.

pSX gains 464pts, up 1.52 despite bearish rally in international markets KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

T

he Karachi Stock Exchange benchmark 100-index gained 464.21 points or 1.52 percent to reach 31092.61 points and volume of 98,636,350 shares on Tuesday. High and low were 31136.30 and 30549.86 respectively. Total volume traded in the market was 98,636,350 shares.

On Monday, KSE 100-index lost

Sowing targets of Rabi crops achieved MULTAN

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Punjab Agriculture Department has completed sowing targets of different crops and vegetables of Rabi season except onion. This was revealed by Executive District Officer (Agriculture) Shafqat Bhatti while talking to APP here. He informed that wheat was cultivated at areas of 462,000 acres against target of 452,000 acres, gram (channa) on 40 acres (target 40), tomato on 255 acres (target of 259), garlic on 218.

T

373.09 points or 1.20 percent to

reach 30628.40 points and volume

of 142,730,880 shares.

Bearish global equities, surging circular debt in the energy sector, weak data on fertilizers sales, exports played a catalyst role for the bearish close in the earnings announcement session at PSX, stated analyst Ahsan Mehanti.

Major activity was witnessed in the stocks of K-Electric, TRG Pak and DG Cement with traded volumes of 15.8m shares, 14m and 10.5m shares respectively. Out of total 342 traded companies in the session, 227 closed in negative, 98 in advance while 17 remained unchanged.

pakistan to continue support AiiB: finance Minister ishhaq Dar ISLAMABAD

P

cuStoMS BuLLetin RepoRt www.customsbulletin.com

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 Nirst meeting of the bank’s Board of Governors, hoped that the bank would work well together in conjunction

with other development banks and supplement the ability to fund and Nill the infrastructure development deNicit in the region. Ishaq Dar also participated in the selection process of the board of directors of AIIB, said a press release received here. Pakistan is one of 28 countries who have already ratiNied the Articles of Agreement (AOA) and is thus eligible to select BoD director. In the Nirst half of the year, some projects are expected to be rolled out by the bank. If Pakistani projects get included in this batch, among top priority would be hydroelectric dams and reservoir projects, said the Minister

talking earlier to media persons about the bank. Established on December 25, 2015, the AIIB has three major layers of operation. Governors, Directors, and Senior Management and it is expected to be operational after its board of governors and board of directors convene in the inaugural session in progress. During the inauguration the events include the Nirst meetings of the Board of Governors followed by meeting of the Board of Directors, the election of inaugural President , the constituency directors and discussion on the key rules of operations and Ninancing.

use of compressors: SngpL disconnects over 1,000 gas meters LAHORE

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Sui Northern Gas Pipelines Limited (SNGPL), during a crackdown against the users of gas compressors, disconnected as many as 1,000 commercial and domestic connections across the provincial capital since December 2015. Under the SNGPL rules, connection cannot be restored before 7 days of removal of the meter, besides heavy fine imposed for violation of contract of connection between the consumer and the company. SNGPL launched this drive on the complaints by the public affected due to the installation of compressors on connections around their neighbourhood which stopped or suspended the supply of gas to their homes in this current spell of acute shortage of gas. As many as 16 special squads have been formed by the SNGPL management to nab the culprits across the city. The teams are inspecting the meters through sophisticated gadgets on the spot and after finding its unusual speed they are authorized to put it off and send to the SNGPL laboratory for checking tempering.

T

govt to launch cargo op first at new islamabad airport ISLAMABAD

T

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he government has decided launch cargo operation Nirst to pave the way for launch of the Nirst-ever green Nield 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 in-

ternational standards shopping arcades, cafes, restaurants facilities in new airport to attract transit passengers. Provision of spacious space at immigration and check-in counters at new airport would be ensuring to cater smooth passengers flow.

The relevant departments have been asked to give clear time-lines for completion for these facilities.

In view of distance of new airport from centres of twin cities, it has

been proposed to start a city shuttle service between new airport and twin cities to cater to carry passengers. According to a senior official of the Civil Aviation Authority (CAA), latest landing system will be installed to allow planes to land in harsh weather and dense fog. With the help of Islamabad Electric Supply Company (IESCO), the NIIA has established its own grid station for power supply. The airport consists of 90

check-in counters and a parking facility for 2,000 vehicles, car parking for 22,000 vehicles, a covered plaza area for 200 cars, a control tower, maintenance hangar, a 15 gate terminal with ten remote gates, a four star hotel, convention centre, duty free shops, food court, two runways, six taxiways, five aprons, 15 passenger boarding bridges, runway lightening system CATE-III, 150 KMT cargo handling facility, and 42 immigration counters.

www.customsbulletin.com

ADVERTISEMENT

5

6

www.customsbulletin.com

ISLAMABAD M ARSHAD www.customsbulletin.com

t

he Pakistan Customs has stepped up the checking of smuggling in the guise of Afghan Transit Trade and, as a result, the volume of smuggling has signiNicantly reduced. Main source of smuggling is the long porous Pak-Afghan border from where goods from Afghanistan enter Pakistan. However, due to long porous border and lack of veriNiable data about smuggling made under the guise of Afghan Transit Trade, it is difNicult to determine the exact losses caused due to the smuggling of goods. “To curb the menace of smuggling across the country including border areas, Pakistan Customs has reinvigorated its enforcement measures,� source at the Pakistan Customs told Customs Today. In this regard, PC has taken a number of steps which have been helpful in checking and reducing smuggling from Afghanistan.

Transportation of Afghan Transit goods through authorized bonded carriers as well as en-route tracking and monitoring of movement of all Afghan Transit containers / vehicles under Tracking and Monitoring of Cargo Rules.

Moreover, the source named establishment of Mobile Enforcement Units (MEUs) in all Customs Collectorates performing anti-smuggling operations to respond to the tracking alerts generated by the system and to coordinate with

the enforcement unit of the Licensed Tracking Company as another important measure in this regard.

Similarly, the source said that the particulars of vehicles having tracking devices carrying transit goods had been electronically entered at the designated check posts and in case of any deviation from the prescribed route, the tracking company informs the concerned Customs Collectorate which sends dedicated Mobile Squads to check the subject vehicle. The source said that movement of transit goods through geo fenced designated routes and real time reconciliation of Afghan Transit consignments through WeBOC System as well as 100% weighment of Transit consignments at entry and exit points and risk based physical examination at entry and exit points had also resulted in reduction in smuggling of goods back into Pakistan from Afghanistan. The source added that strict legal actions under Customs Act, 1969 to deal with cases of pilferage, illegal removal or concealment or misdeclaration of Afghan Transit goods had also forced smugglers to avoid indulging in this crime. Moreover, the source said that Customs Enforcement agency had also cemented intelligence sharing and joint operations with the support of Frontier Corps (KP), Pakistan Rangers (Punjab/Sindh), Pakistan Coast Guards, Pakistan Maritime Security Agency and Political Administrative Authorities (FATA).

www.customsbulletin.com

Wednesday, January 20, 2015

7

8

www.customsbulletin.com

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

A

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.

Revenue loss in mismanagement A

LAHORE

DR AftAB AfZAL

www.customstoday.com

study paper of the International Monetary Fund reveals startling facts about the level of mismanagement in Pakistan which cost the nation Rs 3.3 trillion a year. The amount is higher than the annual tax collections and vindicates the government of its tax amnesty scheme. The current tax-to-GDP ratio in the country is 11.5 percent against tax capacity of 22.3 percent with regard to the gross domestic product. It should be noted that the tax-to-GDP ratio in Pakistan is the lowest in the region. The report of the donor agency points

out narrow tax base, tax concessions, exemptions and low tax compliance as few other reasons for the loss of revenue. As a result, the government fills the gap of less tax collections by levying additional taxes, putting the survival of the medium and small industrial units at stake.

According to the agency, the tax revenues peaked 12.4 percent during the Benazir government in 1996 and emphasizes for the enhancement of the tax base rather than enhancement of the current tax ratio. Contrary to the IMF notion, a World Bank report suggests that Pakistan has the higher tax rates than any other developing country. The PML-N government has imposed Rs 940 billion additional taxes

since it came to power in June 2013 and the recent imposition of Rs 40 billion taxes is a classic example of the minibudget the government opted for under the pressure of the IMF. The government has failed to understand that more taxes means more pressure on the business and economy and it will not only adversely affect the mobilization of the money but also result in concentration of wealth in few hands. Common man is already feeling the heat of indirect taxes in the country.

If the government wants to enhance its revenues, it has to introduce structural reforms and establish an independent body free of political influence.

No doubt Pakistan’s economy is

resilient and it survives every shock and after sock, but what need to do is to establish independent institutions.

Unrealistic tax targets open the floodgates of corruption and no one dares plug the loopholes.

The government will have to start economic reforms programme from zero as basic structural change in the administrative set up is indispensible.

The governments after governments in Pakistan prefer to keep status quo which is the mother of all evils in this country. It is the IMF or the World Bank, unless we as a nation do not take difficult steps, the foreign donor agencies will continue to interfere in the internal affairs of the country.

9

www.customsbulletin.com

One year on, ‘Franckenschock’ still hurts Swiss GENEVA: The Swiss National Bank’s (SNB) decision to scrap its cap on the franc against the euro a year ago today shocked markets and sent the country’s currency rocketing 30 percent. One year on, the franc is still high, 10 percent up against the euro, and export-focused Switzerland is still feeling the pain.

Looking back at the SNB’s shock move James Watson, MD for UK and Europe at ADS Securities, told CNBC “a lot of people were caught in the headlights.”

The decision to impose a maximum value on the franc – the cap had been in place at 1.20 franc per euro since 2011 when investors seeking a safe haven amid the turmoil created by the euro zone debt crisis pushed the franc higher – was made to help Swiss exporters compete. Switzerland’s goods exports grew by 3.5 percent in 2014, exceeding the record set in 2008.

Aptma, chinese commerce ministry join hands to boost export he All Pakistan Textile Mills Association (Aptma) and Ministry of Commerce China, Weihai have joined hands to explore the potential of joint ventures and investment opportunities in textile sector of Pakistan and inked an MoU in this regard. The Ministry of Commerce China, Weihai has also invited the Aptma to visit China in May this year. A 20-members Chinese delegation from the Ministry of Commerce Weihai, China visited the Aptma Punjab. Aptma Punjab Chairman Aamir Fayyaz welcomed the del-

T

egation, headed by Zhang Buwen of Shandog Hushan Group. While making a detailed presentation, the Aptma Punjab chairman highlighted the significance, structure, strength and sustainability of the textile industry in Pakistan. He said there exists great potential for the foreign investment in textile industry of Pakistan, as it enjoys the GSP plus market access to the EU. Converting of surplus basic textile into clothing carries a potential of $15 billion increase in exports from Pakistan, he added He expressed the hope that the China-Pakistan Economic corridor will enhance trade and bilateral relations further to new horizons. The Aptma chairman also offered to act as focal organisation to facilitate match making of Chinese investors with local textile groups under the joint ventures initiative. The Chinese delegation agreed to the offer and appreciated the spirit and expressed the hope that both sides would help each other in expansion of trade and investment.—CB Report

Wednesday January 20, 2016

Chambers

need stressed for focusing on Bulgaria to promote exports P

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

akistan Ambassador-designate to Bulgaria A.S.Babar Hashmi visited Islamabad Chamber of Commerce and Industry (ICCI) to discuss the possibilities of improving bilateral trade between Pakistan and Bulgaria and stressed that businessmen should focus on Bulgaria as it was a gateway to enter SouthEastern Europe for promoting Pakistani trade and exports.

He said that many Pakistani goods including leather products, surgical instruments, textiles, fish products and others could be of great interest for Bulgarian consumers and Pakistani businessmen should explore setting up a Display Centre in Bulgaria to penetrate in Bulgarian and South-East European market.

He said that embassies main job was to work for promoting business and economic interests of Pakistan in foreign countries and added that ICCI should take a trade delegation to Bulgaria while his embassy would extend all possible facilitation to make its visit suc-

cessful. Speaking at the occasion, ICCI President Atif Ikram Sheikh said the role of Pakistani foreign missions was very important in trade promotion and said that Pakistan Embassy in Bulgaria should help in identifying market poten-

tial for Pakistani products and share it with local chambers so that businessmen could make efforts to take benefit of potential business opportunities.

He said economy of Pakistan have huge potential for foreign in-

pRA chief pledges to resolve Sialkot traders’ issues

P

SIALKOT

cuStoMS BuLLetin RepoRt www.customsbulletin.com

unjab Revenue Authority (PRA) Chairman Dr. Raheel Ahmed Siddiqui has assured that all out sincere efforts would be made to resolve all the issues being faced by the Sialkot’s business community. He said that the PRA would take the Sialkot based traders, industrialists and exporters into conNidence, in this regard. He said that the Sialkot exporters have been playing a pivotal role in strengthening the national economy by earning foreign exchange to the tune of $2 billion annually.

He stated this while addressing an important meeting of Sialkot business community recently held at Sialkot Chamber of Commerce and Industry (SCCI) here.

During this meeting, SCCI Presi-

dent Maj (Rtd) Mansur Ahmed discussed in details the matters of mutual interest with the visiting Chairman PRA including Sialkot exporters’ problems regarding issuance of notices by Punjab Revenue Authority (PRA) for deduction and deposit of Withholding Sales Tax on Services related to export industry, withdrawal of Punjab Infrastructure Development Cess and Integration of PRA and FBR systems to facilitate processing of refund of Sales Tax on Services.

He emphasized that the component of services in the export business was minor and processing of refunds would create hassle for the Department and the businesses, hence, export businesses should be granted exemption in deduction and deposit of Withholding Sales Tax on Services. The SCCI President added that Punjab Infrastructure Development Cess should be with-

drawn as exports were already adversely affected due to Sindh Infrastructure Development Cess. It was further proposed to ensure proper integration of PRA and FBR systems to facilitate refund of sales tax on services paid to PRA on Courier Services etc. On this occasion, PRA chairman pledged to hold a meeting with a delegation of SCCI in his ofNice at Lahore to discuss in details the matters of mutual interest, besides, devising a joint strategy to alleviate hardships of the Sialkot exporters on top priority. Punjab Revenue Authority (PRA) Chairman Dr. Raheel Ahmed Siddiqui has assured that all out sincere efforts would be made to resolve all the issues being faced by the Sialkot’s business community.

He said that the PRA would take the Sialkot based traders, industrialists and exporters into conNidence, in this regard.

vestment and joint ventures in various sectors and ambassador-designate should play role in apprising the Bulgarian traders about such opportunities in Pakistan and facilities being extended by the government to the foreign investors.

Australia to coast on the milky way to export boom he China Australia Free Trade Agreement, which took effect on Dec 20, promises to boost the dairy industry in both countries through fresh investments, tie-ups and joint ventures.

Dairy is important for China. The country imported over 2 million tonnes of it worth $7.2 billion, which makes it the world’s largest importer of milk products. China’s dairy import volumes have increased by over 70 percent since 201011, according to Charlie McElhone, group manager, trade and strategy, Dairy Australia, the body of dairy farmers and the industry. The FTA could help the dairy industry in both countries to collaborate and meet surging global demand, he said. —CB Report

T

10

www.customsbulletin.com

UK imports of fresh, frozen pork grow 13% in volume Wednesday January 20, 2016

World

LONDON: UK imports of fresh and frozen pork grew by 13% in volume year-on-year in November 2015 but fell in value over the same period by 4% to £55.8 million, according to AHDB Pork.

Based on the latest figures from HMRC, this continued an import growth trend which has been observed since June 2015, barring a slight dip in September.

“This suggests that, even though prices are falling for UK pork, buyers are looking to source increasing supplies from the EU, where the product is more competitively priced,” said AHDB Pork.

Most of the year-on-year volume increase came from the three main suppliers, Denmark, Germany and the Netherlands, while Spanish shipments continued their strong growth of recent months.

customs seizes 3kg of marijuana at Bali airport

KUTA

cuStoMS BuLLetin RepoRt www.customsbulletin.com

A

British citizen Stephen Russel Hakes (58) was caught red-handed carrying three grams of marijuana by the Customs and Excise OfNice at Ngurah Rai, Denpasar, Bali.

china police bust cross-border drug gang olice in the central Chinese province of Henan apprehended 114 suspected members of an organized cross-border drug syndicate.

The police also seized 142 kilograms of heroin, methamphetamine and caffeine, one handgun, 15 bullets, two grenades, 21 vehicles and 12.3 million yuan (1.86 million U.S. dollars).

Police noticed that a known drug user and dealer from Pingdingshan City frequently contacted a cell phone number registered in southwest China’s Yunnan Province. They began to track his movements from May 2014. The investigation led to the recent raid.

The syndicate smuggled drugs from abroad and sold them mostly in central China regions.—CB Report

P

“The marijuana was hidden in his rectum,” Head of Supervision and Service of the Customs and Excise OfNice at Ngurah Rai, Bali, Budi Harjanto stated here on Wednesday. The British national, born in Watford, England, on December 26, 1958, was arrested shortly after landing at the Ngurah Rai International Airport on January 9 at 12 p.m. local time. He arrived from Dong Mueang, Thailand, aboard AirAsia Nlight FD-396

to Denpasar. Using technology capable of tracking passenger movement, the ofNicers were suspicious of Hakes when the aircraft landed. The ground ofNicers closely observed him at the arrival corridor, immigration checkpoint, and during inspection in the custom area. At Nirst, the ofNicers manually checked Hakes luggage and then continued the process using X-ray scanning equipment, but they did not Nind any suspicious items. The ofNicers suspicions led them to conduct a body check on Hakes. They eventually found a clear plastic bag containing some parts of brown plants. Double-checking through a narcotic test revealed the presence of marijuana or hashish weighing three grams. As a result of his action, Hakes is believed to have violated Article 113, paragraph (1) of Law No. 35 of 2009 on narcotics.

If found guilty, Hakes would have to face a minimum Nive years to a maximum 15 years of jail term in addition to a Nine of between Rp1 billion and Rp10 billion.

Belarusian customs prevents smuggling of goods worth Br90b

M

obile teams of the Belarusian customs service prevented the attempts to smuggle goods worth Br90 billion, on the Belarusian-Russian border, BelTA learned from the press service of the State Customs Committee of Belarus. “Belarusian customs officers monitor the export and import of goods not only at the external border of the Eurasian Economic Union but also at the Belarusian-Russian border.

The mobile teams of the customs service prevent attempts to transport goods in violation of the customs legislation,” the press service said. The State Customs Committee of Belarus noted that most violations are connected with the movement of the embargoed goods to Russia. In 2015 the Belarusian customs stopped more than 200 attempts to smuggle Br49 billion worth of goods to Russian consumers. “—CB Report

uS customs seizes meth worth $52,029 BROWNSVILLE

cuStoMS BuLLetin RepoRt www.customsbulletin.com

U

S Customs and Border Protection ofNicers at the Brownsville Port of Entry intercepted a load of alleged methamphetamine at the Veteran’s International Bridge. CBP ofNicers discovered the alleged narcotics, valued at approximately $52,029, hidden under the clothing of a man attempting entry into the United States. “Drug smugglers will try different ways to introduce narcotics into our country,” said Port Director Petra Horne, Brownsville Port of Entry. “I congratulate our ofNicers for their diligence and dedication which led to the detection and seizure of these hard narcotics.”

The seizure took place on Thursday, Jan. 14, at the Veteran’s International Bridge when a 22-year-old male Mexican citizen who resides in

Matamoros, Tamaulipas, Mexico, applied for entry into the United States through the vehicle lane and was referred to CBP secondary for further examination. During the examination, CBP ofNicers discovered two packages hidden under the man’s clothing. CBP ofNicers removed the packages, which contained a total of 2.60 pounds of alleged methamphetamine with an estimated street value of $52,029. CBP ofNicers seized the narcotics, arrested the traveler, and turned him over to the custody of Homeland Security Investigations (HSI) special agents for further investigation. Meanwhile, Border Patrol Agents in Texas and New Mexico arrested nine suspected smugglers and seized nearly 650 pounds of marijuana. Border Patrol agents assigned to Clint, Texas were alerted to a possible illegal entry east of the Tornillo Port of Entry.

Agents had begun the process of tracking the illegal crossers when they came upon seven bundles of suspected contraband.

Bulgarian customs seize two guns from turkey

B

ulgarian customs ofNicers at Kapitan Andreevo checkpoint have found two guns and 5,200 rounds of ammunition for them hidden in a car with Austrian registration entering from Turkey on Thursday morning.

A man and a woman – both of them Turkish citizens – who travelling in the car, have been detained, Bulgaria’s Customs Agency said in a statement. One of the guns was hidden in package containing washing powder.

The second one was dismantled and its parts were found wrapped in foil

inside empty boxes of medicines. The rounds of ammunition were stashed in packs of washing powder. The Customs Agency didn’t disclose the Ninal destination of the car. Meanwhile, Turkish authorities have detained two people who were caught smuggling a painting which experts suspect is by the 17th century Flemish artist Anthony van Dyck. The authorities had seized the artwork in Istanbul after two businessmen attempted to sell it to undercover Turkish police ofNicers for 14 million lira ($4.6 million, 4.2 million euros).—CB Report

nepal customs revenue collection has increased of late

C

KATHMANDU

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ollection of customs revenue has been hard-hit due to the ongoing blockade organised by the agitating Madhes-based political parties at the border points with India that started from the last week of September. But things have started

getting better in recent weeks according to the Department of Customs. Half-yearly revenue collection of this Niscal has dropped by 34.82 per cent or Rs 33.04 billion as against the target of Rs 94.89 billion, said the DoC, today. Revenue collected from the customs points used to have 50 per cent weightage in the total tax revenue in previous years. The DoC collects customs tariff, value added

tax (VAT), excise and other taxes at the border points. The DoC was able to collect only Rs 61.85 billion in the review period. However, revenue collection did improve in the last month as compared to previous months as the number of vehicles, laden with daily essentials and industrial raw materials, entering Nepal increased from all the border points except Birgunj. Birgunj, which is also known

as the gateway to Kathmandu, is the major supply line for the country and has remained completely closed since the start of the border blockade. It used to be the major revenue contributor, but at present, the contributions from Bhairahawa, Biratnagar and Nepalgunj have gone up signiNicantly after the Nlow of vehicles through these border points started to increase.

11

www.customsbulletin.com

Albania’s fuel prices drop in domestic market TIRANA: Albania’s fuel retail prices in the domestic market slightly dropped by an average of 5 ALL (0.04 U.S. dollar) per liter, reflecting a fairly drastic decline in international oil markets, Albanian Telegraphic Agency reported here the other day.

According to fuel market experts, the downward trend in fuel retail prices in the domestic market is expected to continue in the coming days. Many fuel filling stations in Tirana sold oil at 155 to 156 ALL per liter compared with 160 to 163 ALL per liter it was traded at the beginning of the week. One liter of gasoline was traded at 163 ALL. Experts say the international price drop is not being reflected by the Albanian market, which seems to be a reoccurring problem.

cargo traffic handles by major ports increases 13.45m tons

Ports & Shipping

iron ore stockpiles at china’s ports to surge 100 mln tons

uoyed by the levels and changes of demand both in the domestic and global activity, cargo traffic at India’s twelve major ports witnessed an increase of 13.45 million tonnes during the period of April-December2015 as compared to last year.

Cargo traffic at India’s 12 major ports stood at 447.05 million tonnes during the period between April-December 2015 as compared with 433.5 million tonnes handled during April-December 2014. During the last three quarters of 2015-16, cargo traffic handled at India’s major ports recorded growth of 4.3% in the first quarter (AprilJune), 3.8% in the second quarter (July-September) and 1.4% in the third quarter (October- December).

Volume of seaborne cargo is essentially in the nature of derived demand

B

BEIJING

cuStoMS BuLLetin RepoRt www.customsbulletin.com

I and is mainly shaped by the levels and changes in both the global and domestic activity. The growth for the first three quarters of 2015-16 stood at 3.2 %. During the first nine months of 2015-16, Murmugao port recorded the highest growth in traffic at 35.3% followed by Chidambaranar (19.3 %), HDC (13.8%), KDS (12.5%), Paradip Port (5.2 %), Kandla Port (4.3%), Cochin Port (3.1%), Kamarajar Port (1.5%), Mumbai Port ((0.5%) and JNPT Port at 0.3%. Three ports witnessed negative growth namely New Mangalore Port (6.7%), Chennai Port (5.9%) and Visakhapatnam Port (3.5%) respectively during the same period.—CB Report

ron ore stockpiles at China’s ports will probably surge above 100 million metric tons within weeks as low-cost supplies rise and steel mills rein in output over a nationwide, week-long holiday, according to China Merchants Futures Co. “The increase will be driven by higher shipments from Australia and Brazil, especially in the Ninal months of 2015, against a season-

ally weak period for China demand,” Zhao Chaoyue, an analyst at China Merchants Futures, said by phone on Monday. Zhao predicted the target may be breached before the Lunar New Year break, which starts Feb. 8. The inventories rose 1.7 percent to 94.55 million tons last week, an eight-month high, according to data from Shanghai Steelhome Information Technology Co. Holdings which have expanded for the past four months to climb above their Nive-year average of 92.7 million tons last topped the 100 million ton mark in March.

Rising port holdings in the top user may hurt the outlook for

prices, which have been pummeled over the past year as supplies from exporters including Rio Tinto Group and BHP Billiton Ltd. in Australia and Brazil’s Vale SA expanded while China’s steel output and demand fell. Citigroup Inc., which last week raised the possibility that iron ore may sink into the $20s a ton, has also forecast an increase in the stockpiles to above 100 million tons in the first half, before they taper lower toward the end of 2016. “I don’t think there’s an appetite for people to hold that much inventory on a sustainable basis,” Szpakowski said in a Jan. 14 interview.

Wednesday January 20, 2016

Steel shipments down 11.4% YoY teel shipments or the amount of steel mills actually sell to customers, fell 12.4 percent in November, a 15.5 percent decline from November 2014. U.S. steel mills shipped 6.4 million net tons in November, a double-digit drop from 7.3 million tons sold in October and the 7.6 million tons shipped in the previous November, according to the American Iron and Steel Institute.

Through the end of November, shipments totaled 79.9 million net tons, an 11.4 percent year-over-year decrease. In 2014, they sold 90.2 million net tons over the first 11 months of the year.

Demand for steel rose last year but domestic steelmakers like U.S. Steel and ArcelorMittal USA didn’t benefit at all because cheap and often illegally subsidized foreign steel captured 29 percent of the market share.

Official 2015 numbers haven’t been released yet, but the 28 percent market share for foreign imports in 2014 tied the all-time record. Longtime steelmakers like LTV and National Steel went bankrupt the last time steel imports were so high.

In November, hot-dipped galvanized sheets and strip fell 10 percent, according to the American Iron and Steel Institute. Cold-rolled sheet was down 14 percent and hot-rolled sheet was down 15 percent.—CB Report

S

compal sees 10% growth in shipments

C

BEIJING

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ompal Electronics Inc, the world’s No. 2 contract notebook computer maker, yesterday said it expects its total shipments to grow more than 10 percent year-on-year to 90 million units this year, driven by growing demand for non-notebook products.

The non-notebook segment is deNinitely going to contribute more than 30 percent revenue this year,

compared with last year’s contribution of 26 percent,” Compal president Ray Chen told a press conference before the Nirm’s annual weiya banquet for its employees at the Nangang Exhibition Hall in Taipei.

He said shipments from new business units, such as servers, wearable products and Internet of Things products, would grow signiNicantly to 5.6 million units from last year’s about 1 million units.

Shipments of tablets are expected to climb from last year largely on the back of the market

share gains by Compal’s three tablet clients, Chen said. However, the company is conservative about its smartphone shipments this year due to an uncertain outlook for the industry, he said. Compal’s smartphone segment failed to achieve our shipments goal last year, due to some clients changing their orders because of global soft demand,” he said. “In light of this, we are conservative about the outlook for the segment this year.” Driven by the tablet shipments, Chen said Compal’s smart device segment, which in-

cludes smartphones, is expected to see its shipments surge more than 12 percent from last year’s 37 million units to 41.5 million units.

Chen also expects higher TV shipments this year, after the company last year took over Toshiba Corp’s TV business in North America and Europe. Notebook computers still accounted for 74 percent of the Nirm’s annual revenue of NT$847.22 billion (US$25.06 billion) last year and the segment’s shipments are expected to be Nlat from last year’s 40 million units, Chen said.

12

www.customsbulletin.com

FIA arrests six human traffickers, recovers 64 passports LAHORE: The Federal Investigation Agency (FIA) has arrested six human smugglers from different districts of Punjab and seized illegal gateway exchange with unregistered mobile SIMs, computers and other equipment. Director Federal Investigation Agency (FIA) issued strict directions to curb human smuggling in the region. Yesterday, Federal Investigation Agency raided in Khushab, Gujrat and Toba Tek Singh districts and recovered 800 illegal SIMs, computers, two laptops, 64 passports and other items which are helpful for human smuggling.

Wednesday, January 20, 2016

CUSTOMS BULLETIN

Multan ASo impounds three vehicles worth Rs 3.4 million MULTAN iMRAn ALi

www.customsbulletin.com

T

he Custom Anti-Smuggling Organization (ASO) has impounded three non-customs paid vehicles worth Rs 3.4 million during up to now in January.

As per details, the ASO teams conducted raids to curb anti-smuggling activities, besides checking 150 vehicles. The teams impounded three non-duty paid vehicles. It has not conNiscated other miscellaneous goods during the action.

Three vehicles including Toyota Hilux Surf bearing registration number VK-365/Islamabad, Toyota Raum with registration number LEE-1398 and Toyota Raum with Registration number WH-255/Islamabad were impounded. The value of the vehicles was estimated at Rs 3.4 million. Meanwhile, Deputy Collector Anti-Smuggling Organization Muhammad Ali Malik has conducted a meeting in Customs House Multan to discuss the current performance of the anti-smuggling staff.

Deputy Collector Muhammad Ali Malik has directed the entire Nield staff of the organization to perform their duties and assigned task care-

fully in order to curb smuggling from the region. Superintendent Shahid Noor was also present during the meeting in which Deputy Collector

Muhammad Ali Malik introduced new strategy to curb smuggling in the region through effective measures. Deputy Collector have received

clariNication about less smuggling cases formed by Customs AntiSmuggling Organization unit during said period. He advised whole ASO

staff to remain vigilant throughout the jurisdiction against smugglers and he will not tolerate any sort of negligence from staff if found.

faisalabad customs seizes consignment worth Rs 1.5 million FAISALABAD

nAeeM SHeikH

www.customsbulletin.com

T

he Model Customs Collectorate Appraisement has conNiscated a consignment worth Rs 1.519 involving duty/taxes amounting to Rs 788,466 as it was imported through mis-declaration.

As per details, Examination Deputy Superintendent Anwar Perwaiz, Inspector ShaNiq Ahmed

Baig and Syed Shahzad Ali seized the consignment consisting of suit cases, front cabinet for TV, 98 cartons of jug used for blender, 330 cartons of cell phone chargers, 45 cartons of landline telephone sets, 200 cartons of porcelain tiles and other items.

Sources told Customs Today That M/s M Shazad Enterprises Faisalabad had imported different consignment from China and UAE by mis-declaring their description on the transshipment documents.

They added that the ofNicials of the Customs Appraisement now have held the container from Faisalabad

Dry Port after Ninding it mis-declared. The seizure report along with all relevant documents has been submitted to the Collectorate of Customs Adjudication for further investigations.

Meanwhile, Customs Adjudication Additional Collector Saima Aftab has declared the confiscation of ceramic tiles cartons Satrap Brand and Masood Brand made in Iran and China as lawful and issued order in original in favour of the Customs Intelligence and Investigation Faisalabad.

As per details, the Customs Intelligence Faisalabad seized ce-

ramic tiles during a raid at a godown of M/s Modern Tiles House situated near Fatimah jinnah Road Sargodha. The godown is owned by Muhammad Naeem son of Muhammad Bashir, a resident Qadir Bukhsh Colony Sargodha. The Customs team asked the accused to produced documents showing legal import of ceramics tiles, but he could not produce the same. Therefore, the official impounded the ceramics tiles under section 16 and 18 of the customs act 1969 and 3(1) and 3(3) of the import and export control act 1950 punishable un-

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

der section 156(1)90 of customs act 1969. LaterSenior intelligence officer Muhammad Tahir Iqbal and Faizi Raza inspector appeared from customs side and reiterated the charges framed against the respondents. Asim Bashir authorised representative appeared from M/S Godown. Who have imported these tiles. He also produced the copies of GDs sales tax invoice and retuns data. The intelligence officer verified only one transaction relating to sales tax invoices issused by Qaiser Riaz proprietor of M/S Hussain Traders Lahore.