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Vol 1 Issue No. 279

Karachi, Thu January 21, 2016

ISLAMABAD

M HAYAT

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hairman Federal Board of Reve n u e (FBR), Nisar Muhammad Khan expressed need to broadening the tax net to increase the revenues for economic stability and growth in the country.

“We are committed to simplifying tax system by adopting sci-

entiTic and technical approach to broaden the tax-net,” adding, such methods will increase strength of the taxpayers.

While addressing a reception arranged by Anjuman-e-Tajran, Islamabad, he said that tax collection is necessary to manage the imbalance between the different classes in the society. He said the country has required funds to develop health, education and communication sectors for the beneTit of

Price Rs. 14.00

the common man. The Chairman FBR said, without the tax collection and broadening the tax net, the government would not be able provide the resources to develop these sectors in the country. He said, welfare state is only possible through the collection of taxes from all sections of the society according to their Tinancial strength to invest these resources for the alleviation of poverty from the country.

Customs officials to attend 21st CLBC meeting in India on Jan. 27

Multan Intelligence Additional Director Nisar visits DG Khan Office

Ahsan directs authorities to speed up work on development projects

Faisalabad Customs Intelligence seizes smuggled items worth Rs 14m

Sovereignty of elected trade bodies to be secured fully: Azhar Iqbal

The will leave for India to attend 21st Customs Liaison Border Committee | See pAge 02 |

Customs Intelligence Additional Director Nisar has visited DG Khan | See pAge 03 |

Cluster-based development of agriculture, industrial and mining sectors | See pAge 04 |

The Customs Intelligence confiscated smuggled items worth Rs 14.16 million | See pAge 12 |

Sovereignty of elected trade bodies, including CCI across the country | See pAge 09 |

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FBR recovers Rs 1.7m sales tax from Al-Riaz Foundry Thursday, January 21, 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.

customs officials to attend 21st cLBc meeting in india on Jan 27

changes in the offing to improve tax recovery system: Dr Ayesha LAHORE

M HAYAT

LAHORE

M HAYAT

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he Customs Lahore ofTicials will leave for India to attend 21st Customs Liaison Border Committee (CLBC) meeting which will be held in Amritsar, sources told Customs Today here.

The sources said that Chief Collector of Customs Rozi Khan Burki will lead the delegation consisting customs ofTicials including Collector of Customs Mukarram Jah Ansari, Additional Collector Sumera Sheikh, Assistant Collector Sumeer Tarar and Deputy Collector Iram Sohail. The ofTicials will leave for India on January 27 or 28 to attend the committee meeting.

Earlier the 20th CLBC meeting was held at the Customs House Lahore which was also attended by Chief Collector of Customs Rozi Khan Burki, Collector of Customs Lahore Preventive Mukarram Jah Ansari, Additional Collector Jamil Nasir, Deputy Collector of Customs Iram Sohail and DC Nazima Salim from Pakistan Customs while Commissioner Captain Sanjay Gahlot, Additional Commissioner Nitin Saini, Deputy Commissioner Paramavtar Singh Gill, Assistant Commissioner Jasmeet Singh and Assistant Director Jasveer Khichar represented Indian side in CLBC meeting. According to Customs OfTicials the CLBC meeting

rovincial Finance Minister Dr. Ayesha Ghaus Pasha has said that changes are being brought at administrative level for improving tax recovery system.

She expressed these views while presiding over a meeting regarding tax reforms policy. Officials of Excise and Taxation Department, Board of Revenue and Punjab Revenue Authority besides representatives of World Bank and DFID were present during the occasion. Punjab government is introducing Public Financial Management Reforms for harmonizing provincial finance policy with the demands of 21st century. She said that the aim of these reforms is to extend the scope of Punjab financial management at government level. The provincial minister said that under public financial reforms, strong linkage will be developed between government policy and allocation, designing system for efficient release of funds and their effective utilization. She said that process of release of funds will be regularly monitored. Dr. Ayesha Ghaus Pasha said that technical assistance is being sought from World Bank.

provides the customs authorities of the both sides an opportunity to

streamline things ahead of the high season besides train, bus and on-foot

trafTic issues are also discussed to speed up customs clearance.

Dastgir flies to Switzerland ahead of pM’s wef meeting

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ISLAMABAD

M ArSHAD

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inister for Commerce Khurram Dastgir Tlew to Switzerland in early hours on Tuesday for a week-long ofTicial visit.

He will Tinalize arrangements the Prime Minister Nawaz Sharif’s engagements in Davos during his stay there from Wednesday to Monday.

Pakistan’s exports to the European Union stand at €3.4 billion

which is 20 percent of the country’s external trade. The exports the European Union include textile products, medical equipment and leather products while the European Union’s exports to Pakistan stand at €3.8 billion. Pakistani imports include mechanical and electrical equipment as well as chemical and pharmaceutical products.

Sources told Customs Today that the prime minister would participate in the annual meeting of the World Economic Forum (WEF) in

Davos, Switzerland. He would also visit CERN (European Organization for Nuclear Research), one of the foremost international centers of scientiTic research.

However, the source added that commerce minister would make arrangements for the activities of prime minister on the sidelines of the ofTicially announced programmes, including arranging meetings with heads of states, representatives and delegates of important countries. At least 3,000 heads of

states/government, top business leaders, academics and media leaders are expected to attend the WEF Annual Meeting 2016..

Besides above mentioned, activities, commerce minister will likely to hold important meetings with heads of concerned committees of the European Parliament including the International Trade on Monday.

Similarly, he will also likely to attend meeting of EU Parliamentary Committee on Development on the same day as well as meeting of an-

other committee on economic and monetary affairs on same day. The agenda for the meetings can be oversight of development programming, EU Global Strategy.

Committee on Development will discuss the Committee’s oversight of development cooperation programming with Commissioner Neven Mimica as well as budget discharge for 2014 and development aspects of the EU’s future Global Strategy on Foreign and Security Policy.

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Multan Customs to auction vehicles, items today MULTAN: The Model Customs Collectorate will hold auction of seized goods and vehicles today here at Customs House.

As per details, the customs will present almost six vehicles, which were impounded during anti-smuggling operations in the regions. The vehicles include Toyota Sierra Jeep, Toyota Hilux Surf, Toyota Vitz, Toyota Corolla X, Toyota Land Cruiser and Suzuki Heavy bike. The department will also hold the auction of 140,000 liters of petroleum products i.e. bunker fuel, furnace oil diesel and petrol, auto parts, old and used tyres and huge quantity of seized cell phones.

Member waqar Ahmad hears case against customs inspector

Thursday January 21, 2016

National

Multan intelligence Additional Director nisar visits Dg khan oďŹƒce

ISLAMABAD

M fAiZAn

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ederal Board of Revenue (FBR) Administration Member Waqar Ahmad has conducted personal hearing of Inspector Mazhar Ali who is facing the charges of violating the rules and regulations.

As per details, Mazhar who has been performing duties at the Peshawar Model Customs Collectorate was found guilty in the inquiry report, which also asked the department for imposing major penalty upon him.

The inspector has filed an appeal against the report and appeared before the Administration member for personal hearing where he presented his arguments.

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customs court sends cell phone smuggler to jail LAHORE

M iMrAn MeHAr

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he Special Court of Customs Taxation and Anti-Smuggling has sent an alleged cell phone smuggler to jail on judicial remand.

According to the details, an accused, Tariq Kazmi, was arrested by the Customs Appraisement at Allama Iqbal International Airport Lahore when he was coming back from a Gulf state following the recovery of 70 pieces of cell phones of different brands, including iphone, Samsung and Nokia from his luggage.

The authorities of Lahore Customs presented him before the court where the accused was sent on judicial remand.

On Tuesday, he was produced before Special Judge Chaudhary Ameer Muhammad Khan who has extended his judicial remand for 14 days.

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MULTAN

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ustoms Intelligence and Investigation Additional Director Nisar Ahmad has visited Dera Ghazi Khan in order to check anti-smuggling performance of the ofTicials and their attendance.

During his visit, the additional collector veriTied the attendance of the staff and visited different check post of customs in DG Khan. He has directed the teams to increase the vigilance in order to curb smuggling attempts. He also said that routes used by smugglers should be strictly monitored, besides directing them to conduct patrolling in the area of Koh-e-Suleman range to intercept the non-duty paid vehicles.

It is important to mention here that Customs Intelligence impounded two vehicles including Toyota Land Cruiser and Toyota Corolla X from Koh-e Suleman mountains few days ago during antismuggling operations.

It may also mention here that Dera Ghazi Khan and Sadiqabad regions fall under the jurisdiction of Multan Customs Intelligence and Investigation.

Meanwhile, The Customs Intelligence and Investigation impounded a smuggled vehicle worth Rs 1.5 million from Dera Ghazi Khan.

As per details, Additional Director Nisar Ahmad received secret information that a smuggled Toyota

Corolla X car was in DG Khan so he constituted a team to capture the car.

The DG Khan Tield investigation unit chased the vehicle after having an encounter but the miscreant escaped from the scene. Later, the intelligence team received information that the vehicle was parked in backside of a local hotel namely Shalimar. The team raided the place and found vehicle, which was impounded. It is learnt that the owner of the hotel interrupted and refused to hand over the car but

customs intelligence impounded two vehicles including Toyota Land cruiser and Toyota corolla X from koh-e Suleman mountains few days ago during anti-smuggling operations

rTo-ii sends notices to 3,000 taxpayers LAHORE

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he Federal Board of Revenue (FBR) Regional Tax OfTiceII (RTO-II) has issued more than 3,000 notices to the tax return Tilers who submitted incomplete documents. OfTicials said that a number of tax returns were found

incomplete. They added that Tilers had not attached different documents, including payment details, proTit and loss accounts, personal expenditures and other necessary documents. Now, following the instructions of RTO-II Chief Commissioner Rukhsana Yasmeen, all zones concerned have issued notices to the Tilers under Section 120(3) of the Income Tax Ordinance. If tax Tilers did not respond to the notices, their returns will be considered invalid, the ofTicials added.

the customs ofTicials called police to tackle the situation and Tinally held the car on the non-availability of import documents under the Customs Act, 1969. Meanwhile, Additional Director Nisar Ahmad is going to attend three days training program in Lahore. According to details, Additional Director Nisar Ahmad left for Lahore to attend mandatory training of Customs Intelligence and Investigation for the capacity building of ofTicials in the current scenario.

customs court hears 21 cases n the Special Court of Customs Taxation and Anti-Smuggling, different cases were scheduled for hearing on Tuesday.

The Special Court accepted the bail plea of Sheikh Iqbal, allegedly involved in a case of tax evasion. The court approved his bail plea against cash guarantee and surety bonds which was deposited in the court.

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Iran investment hope cheers traders in Dubai Thursday, January 21, 2016

Business

DUBAI: The last time Hassan Harshbaf was doing business in his homeland, Iran, he had to leave in a hurry. In 2009, when sanctions were tightened, he had to walk away from long-term contracts in oil services. “We had a very big operation in Iran,” he said, sitting poolside at his villa in Dubai. “We got a notice from headquarters that we had to go. We gave the client – the National Iranian Oil Company (NIOC) – three months to find someone else. They were not very happy about it. Mr Harshbaf then had to wind up the operation – exporting equipment, transferring expats and sacking local staff – and move to across the Gulf.

pSX again loses 327 points as bears roar back KARACHI

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ust day after recouping 464 points, the Pakistan Stock Exchange (PSX) Wednesday again lost 326.60 points or 1.05 per cent to drop to 30766.01 points level at closing.

The stocks recorded the highest trading level of 31092.61 points and lowest level of 30689.84 points, with the volume

pakistan to negotiate fTA with iran ISLAMABAD

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akistan on Tuesday showed interest to negotiate a free trade agreement (FTA) with Iran after United States and European Union lifted sanctions on Tehran.

"Lifting sanctions from Iran has provided Pakistan with a historic opportunity to raise mutual trade and investment to new heights as the leaders of the two nations envisioned in their meeting in 2014," said Federal Minster for Commerce, Khurram Dastgir Khan.

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of 106 million shares, having over

Rs7.001 billion value. As many as

302 companies were active; of which 85 advanced, 201 declined and 16 remained unchanged. The three top traded companies were Sui North Gas with a volume of 11,054,500 and price per share of 21.42 (0.20), TRG Pak Ltd with a volume 8,864,000 of price per share of 26.83 (-0.66), and MapleLeafCement with a volume 8,192,000 of price per share of 82.23 (0.63). The top three gainers were Ghandhara Ind with price per share 439.67 (20.77), Abbott (Lab) with price per share of 600.09 (13.69) and Biafo Ind price per share of 272.58 (12.98).

Ahsan directs authorities to speed up work on development projects ISLAMABAD

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luster-based development of agriculture, industrial and mining sectors should be carried out by keeping in view their future growth and export potential Federal Minister for Planning, Development and Reforms Ahsan Iqbal, while chairing a high-level meeting of his ministry, directed the authorities concerned to speed up the pace of work for launching of

the projects in these sectors, The minister emphasised on exportable component in clusterbased development of these sectors through value-addition in these sectors. He also directed for identifying different products in these sectors, which should be taken on priority basis for launching the project. He said that provinces should also be taken on board on these projects for the broader ownership.

Ahsan Iqbal directed for making agriculture universities in all the provinces partners in cluster-based transformational plan to beneTit

from their research and studies on agri products as well as progressive farmers and private sector should also taken on board.

On cluster based industrial and mineral transformational plan, Ahsan directed for indentifying the existing and emerging clusters in these sectors to tap their potential for growth and export purposes.

Meanwhile, Federal 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.

Huge gas reserves discovered in kp PESHAWAR

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uge gas reserves have been discovered in district Hangu of Khyber Pakhtunkhwa.

MOL Pakistan found the gas-condensate reserves at its exploratory well Mardan Khel-I. This is the seventh discovery in the TAL Block after Manzalai, Makori, Mamikhel, Maramzai, Makori East and Tolanj oil and gas-condensate discoveries since 2002.

MOL Pakistan, an oil and gas company owned by MOL Group, that is known worldwide for its mega business ventures in different investment fields, launched its operations in Pakistan in 1997 in Exploration and Production (E&P) sector and has ever since, made a number of mega oil and gas well discoveries.

Appreciating the investmentfriendly policies of the Government of Pakistan, Dr Berislav Gaso, Chief Operating Officer MOL Oil and Gas upstream, expressed satisfaction over the reformed economic outlook of the country. “The MOL Pakistan sincerely believes that its E & P skill inventory gathered over the period of 17 years can positively contribute towards the self-sustainability of Pakistan’s energy needs,” he added.

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Textile exporters losing share in uS market: SBp KARACHI

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extile exporters are losing their share in the US market as compared to other competitors, The State Bank of Pakistan (SBP) said. In its Tirst quarterly review released a day ago, the central bank said that in the US market the overall import demand for textiles and apparel increased during July–

September 2015; however, Pakistan had not been able to Tirm up its exports. It said that following the trend in previous years, the demand for cotton textile, which constitutes the bulk of Pakistan’s exports, continued to decline in the US market.

“The market for manmade Tiber products is expanding at a fast pace, but Pakistan has failed to diversify its product range accordingly,” the SBP said, adding: “Worryingly, Pakistan has now begun to lose its share

even in the cotton apparel market of the US.”The SBP said that the textile exports continued to face subdued global demand. The cloth manufacturing progressed slowly due to depressed demand from the European market, it said.

“In the US, Pakistani manufactures are losing their share to other exporting countries such as India and Vietnam.” In the yarn segment, the report said, availability of cheaper yarn from India posed seri-

ous challenges to local manufacturers. “However, the situation is expected to improve, as the government has imposed 10 percent duty on yarn imports from November 1, 2015,” the report added.

The textile exports registered a decline of 5.6 percent during the Tirst quarter of 2015/16 mainly due to shrinking global demand. The overall imports of textile and clothing of the European Union declined sharply during the period under re-

view. In the case of clothing, all major countries faced decline in exports to the EU markets, except Pakistan and Bangladesh. “These two countries enjoy duty-free access to this market: Pakistan in terms of GSP+ and Bangladesh via Everything-But-Arms (EBA),” the SBP said. The overall exports of Pakistan registered a decline of 14 percent during the period under review as compared to the decline of 10.4 percent due to global factors.

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Thursday, January 21, 2015

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he Collectorate of Customs Preventive, Karachi, has foiled an attempt to smuggle foreign origin liquor and seized 8400 bottles valuing more than Rs 34 million.

Addressing a press conference, Collector S Tariq Huda said that Drug Enforcement Cell Headquarters of the Customs Preventive received information that an attempt would be made to smuggle a huge quantity of foreign origin alcohol from the western coast of Karachi.

Accordingly, strict vigil and patrolling was maintained by the Drug Enforcement Cell Headquarters on the coastal belt, especially in the area of Mubarak Village up to Hawk’s Bay Road in the District West of the city.

On January 15, while extensive patrolling was being maintained in the area as mentioned above, two loaded trucks were seen coming from Mubarak village which were escorted by four motorcyclists.

The trucks drivers were cautioned to stop, but they accelerated the speed and also tried to hit the Customs vehicle. During the hot pursuit, both the trucks reached Laal Bhakkar from where one of the roads is going towards RCD Highway. Several warning shots in the air were Tired which ultimately made the trucks to stop, however, the drivers managed to Tlee away on the escorting motorcycles.

Both the trucks were taken over by the drivers of the Customs team who drove them to the ofTice of the Drug Enforcement Cell Headquarters at NMB Wharf. Both the trucks were found laden with gunny bags using cover load of cardboard carton bundles.

All the gunny bags were off loaded which upon counting were found to be 355 in number.

Thereafter, all the gunny bags were cut open

and detailed examination was carried out which resulted in the recovery of 8,413 bottles of foreign origin liquor.

This is yet another successful attempt by the staff of Customs Preventive, which prevented smuggling of such a huge quantity of foreign origin liquor having street value of Rs. 34215000 (Thirty four million Pak rupees) Meanwhile, The Collector of Customs Preventive Syed Muhammad Tariq Huda has revealed that the Pakistan Customs has requested the Federal Interior Ministry to notify Customs as the main stream “Law Enforcing Agency”, as all over the world the Customs is one of the main agency which enforcing the law at coastline of the country. Talking to Customs Today exclusively, the Collector Preventive S M Tariq Huda said that the Pakistan Customs is right now enforcing the law and taking actions against smuggling cartels at West and South borders of the city. Responding to a query, the Collector said that the Pakistan Customs is currently facing shortage of manpower as well as the resources; adding that one of the main assets in the shape of anti-smuggling boat namely “Barbarossa” is already being nonoperational for many years. However; the federal government will handing over four new latest equipped anti-smuggling boats to the Pakistan Customs in the next six months or so and the process of procurement of those ships and other latest equipments have been started. The Collector Preventive further asserted that the federal government has already issued Rs 250million during the Tiscal year to the Pakistan Customs to improve the Drug Enforcement Cell (DEC) of the Collectorate.

off s were g g a b y gunn ountin All the hich upon c umber. dw in n loade be 355 ny bags o t d un fo u n l the g tailed l were a , r e de af t n and ed out Th e re e p o t cu s c arri er y of a were w n r e c ov inatio ex a m l t e d i n t h e origin n u s g i e r e r h o f fo whic ottles or b 3 1 8,4 liqu

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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.

revenue loss in mismanagement A

LAHORE

Dr AfTAB AfZAL

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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.

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Italy to offer financing for investment in Iran ROME: The Italian government is planning to offer up to €8 billion ($8.71 billion) in financing for companies to invest in Iran, as they expect Italian exports to Iran to quadruple in two years.

Under the terms of the agreement announced Saturday, the United Nations lifted its sanctions on Iran, and the European Union and the U.S. lifted their nuclear-related measures. U.S. President Barack Obama immediately issued an executive order revoking earlier orders that imposed nuclear sanctions on Iran, and the names of hundreds of people and companies removed from U.S. blacklists were released in a single list.

Italy—which had strong ties with Iran before the sanctions—is eager to benefit from potential business opportunities arising. The government has been trying to pave the way to revamp trade relations in the last months and is working to help Italians get closer to investors and prospective clients in Iran.

Sovereignty of elected trade bodies to be secured fully: Azhar overeignty of elected trade bodies, including chambers of commerce and industry (CCI) across the country would be fully preserved in order to facilitate the business community by strictly adhering to the regulatory laws concerned, Directorate General of the Trade Organizations (DGTO) Regulator Azhar Iqbal. He was addressing a meeting of the office bearers and executive members of the Faisalabad Chamber of Commerce and Industry (FCCI).

He said that the chambers were ac-

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tually voluntary organizations those are managing their affairs efficiently.

The DGTO did not want to poke unnecessarily its nose into the domain of the chambers, he added. “No doubt there is a delicate system of check and balance but DGTO was reluctant to take any action and it was reflective from the fact that he has not appointed even a single administrator in any chamber of country during his tenure,” Iqbal said. He said that things were moving in the right direction. However, sometime DGTO has to take unpleasant decisions on the complaints received by his office.

He also mentioned that there was no intervention in this directorate and he was free to make independent decisions. He asked the participants of the meeting that doors of his office were always open and they could get any type of facility by just making him a phone call. Speaking on increasing the tenure of elected office bearers from one to two years, he said that it would be decision of the chambers and in this connection a written application should be moved through FPCCI. —CB Report

Thursday January 21, 2016

Chambers

fcci chief calls to extend Voluntary Tax Scheme to all the SMes C

FAISALABAD

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haudhary Muhammad Nawaz President Faisalabad Chamber of Commerce and Industry (FCCI) has demanded to enhance the scope of amnesty under Voluntary Tax Scheme to the entire SMEs sector without any discrimination of trader or industry.

Addressing the 8th All Pakistan Chamber’s Presidents Conference (APCPC) organized by Rawalpindi Chamber of Commerce and Industry (RCCI) at Bhurban, he said that Government should take the business community into conTidence while formulating its tax and economy related policies so that these could yield required results and put the country on the right track. He appreciated the amnesty for traders but said that the same facility should also be made available to the SME sector. “It would not only encourage the SME sector but also help in enhancing industrial productivity in addition to creating new job opportunities for the new generation”, he added. He was also appreciative of the 8th APCPC and told that FCCI

will host next APCPC at Faisalabad during the month of July this year.

Commenting on the joint declaration of the Bhurban Conference, he said that business community fully understands importance of China Pakistan Economic Corridor (CPEC) as it would not only spur economic activities in Pakistan but also prove a game changer for the entire region. He said that Govern-

ment was making serious efforts to overcome the energy crisis but the pace of work on existing dams should be expedited in addition to the construction of new dams particularly in the area of Gilgat-Biltastan. He also demanded to expedite work on CASA-1000 in order to inject 1000 MW of additional electricity into the national grid as early as possible.

icci for passing full benefit of falling oil price

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ISLAMABAD

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he Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to pass full beneTit of falling international oil prices on consumers by making proportionate cut in domestic prices of POL products that will help in boosting business activities and providing relief to the common man.

Atif Ikram Sheikh president, Sheikh Pervez Ahmed senior vice president and Sheikh Abdul Waheed vice president, Islamabad Chamber of Commerce and Industry said that crude oil price in international market has come down to 12 years low level of below $30/barrel and government should make proportionate cut in domestic prices of POL products to pass on beneTit of these

falling oil prices to the people.

They said whenever oil price in international market went up, no time was wasted to pass on its burden to the common man. However, at a time when there was a golden opportunity for the government to provide relief, people were still waiting for cut in domestic POL prices.

They said instead of making falling international oil prices a source of revenue for itself, government should transfer this beneTit to the general public that will mitigate miseries of common man, bring down production cost, reduce inTlation and lead to big boost in business and economic activities in the country.

They said government has imposed heavy taxes on POL products as GST on these products was raised ranging from over 25 percent to 45 percent. They said government was collecting about 45 percent of total sales tax from POL products, but this

approach caused exorbitant hike in energy and production cost putting highly negative impact on the growth of industrial activities and exports. They said apart from heavy GST, people were also paying petroleum levy from Rs.6 to Rs.14 per liter and all such measures have deprived our nation of historic fall in international oil prices. They demanded that government should reduce GST and other taxes on POL products and reduce domestic oil prices appreciably that would lead to creation of conducive environment for business and investment activities. Meanwhile, The Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to take policy measures and offer good incentives for channelizing the remittances towards the productive activities that would help in promoting business activities and increasing economic growth of the country.

Similarly, the gas projects including TAPI (Turkmenistan, Afghanistan, Pakistan, and India) and Pakistan-Iran gas pipeline should also be completed at a faster pace to meet the increasing energy demand of the country. He assured that business community of Pakistan will fully support Government in early completion of these projects.

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

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China police bust cross-border drug gang Thursday January 21, 2016

World

HENAN: Police 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.

uk customs seized illegal drugs worth £1.6m LONDON

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llegal drugs with a likely street value of more than £1.6 million were seized at a parcel depot near Tamworth.

Border Force ofTicers discovered the packages of cannabis, amphetamines and ecstasy over two days in 18 separate parcels at the UPS parcel depot in Birch Coppice. The drugs were concealed in plastic and cardboard boxes. Phillip Holliday, Border Force’s regional director, praised ofTicers over the Tind. “It is thanks to the vigilance and expertise of Border Force ofTicers that this attempt to smuggle a large amount of drugs into the country has been stopped,” he said. “By making this seizure, estimated to be worth more than £1.6m, our ofTicers have prevented a substantial quantity of illegal drugs from ending up on the streets of the UK

uS customs seizes fake fitBit devices in philadelphia S Customs and Border Protection (CBP) officers have seized hundreds of counterfeit smart wristbands in Philadelphia.

The 350 intercepted smart wristbands copies of the successful Fitbit brand of activity trackers would have a value of around $35,000 at manufacturer’s suggested retail prices (MSRP). The shipment arrived in Philadelphia from Hong Kong on December 4. “Working with the trademark holder, CBP determined that the 350 smart wristbands were counterfeit, and seized them on January 4,” said CBP in a statement. “CBP will continue to work closely with our trade and consumer safety partners to identify and seize counterfeit and substandard merchandise, especially those products that pose potential harm to American consumers,” continued Susan Stranieri, CBP Port Director for the area port of Philadelphia.—CB Report

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and put a serious dent in the proTits of the criminals involved in this type of smuggling.” The seizure was made

by Border Force on December 21 and December 22 last year, with information about the discovery made publicly available this week. Investigations by the National Crime Agency are continuing, a Home OfTice spokesperson said. Anyone with information about activity they suspect may be linked to smuggling can call the Customs Hotline on 0800 59 5000. Meanwhile, A man has been jailed for more than Tive years after he was caught smuggling more than £600,000 worth of heroin into the UK from Pakistan. Khalid Mahmood, of Colonial Road in Bordesley Green , was stopped by Border Force ofTicers at Heathrow Airport as he arrived on a Tlight from Lahore via Abu Dhabi last November. The 46-yearold, a Pakistani national, was travelling with one checked-in bag which was searched by ofTicers who found two tape-wrapped packages within items of clothing.

china customs seizes smuggled iphones worth rMB500,000

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uanggang Customs House (afTiliated to Shenzhen Customs District) seized an entry smuggling case, in which 360

iPhones were hided in wheel hubs of an inbound vehicle.

By image scanning, ofTicers found something abnormal at the vehicle bottom. Then closer inspection revealed three hidden boxes next to wheel hubs. The lawbreakers racked their brains in tightly welding the hidden boxes into the vehicle body.

By using special devices, the ofTicers

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Tinally opened all the boxes and took out 360 sets of Apple iPhones, which were estimated worth RMB500,000.

Meanwhile, Talks with the Zhuhai municipal government, Chinese government, Zhuhai Airport Authority and the Civil Aviation Authority China (CAAC) resulted in temporary International China Inspection and Quarantine (CIQ) services at Zhuhai Airport for non-scheduled business aviation movements, the Asian Business Aviation Associatin (AsBAA) announced today. Following the approval late last month, China’s National Port Administration OfTice opened a temporary customs port on January 1. The approval is renewable on a six-month basis.

During the “approval period” from January 1 to June 30, crewmembers of foreign business aviation Tlights can enter and exit China via the temporary business aviation port at Zhuhai Airport.

Dutch drugs haul seized in Limerick uk nov thermal coal imports drop ore than €30,000 worth of detained at Henry St. Garda Station, 49% to 1.2 million mt: customs data cannabis herb has been under the provisions of Section 2 of

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he UK imported 1.2 million mt of thermal coal in November, down 49% over year, marking the ninth consecutive month of year-on-year declines, according to customs data.

However, imported volumes were up 3% month on month, posting their highest monthly level since April, when the UK doubled its Carbon Price Support mechanism, reducing coal’s competitiveness.

Colombia remained the singlelargest source of coal into the UK,

importing a total of 515,929 mt in November, falling 33% year on year.

At 115,946 mt, total imports from northwest and eastern Europe were at their highest level since July 2015, the data showed. Platts Coal Trader International is the only daily publication where you can access Platts proprietary price assessments for coal trading in the Atlantic and PaciTic markets, including FOB Newcastle 5,500 NAR; CFR South China 5,500 NAR; and FOB Kalimantan 5,900 GAR.—CB Report

seized in County Limerick this Monday as part of a joint operation between An Garda Siochana divisional drugs unit and Customs ofTicials with Revenue.

As part of an intelligence led, joint operation, with An Garda Síochána, Revenue ofTicers seized 1.6 kgs of cannabis herb with an estimated street value of approximately €32,000 at Newcastle West, Limerick. The drugs had been sent in freight from the Netherlands.

Two males, aged 32 and 46 years of age were arrested, by Gardaí and

the Criminal Justice (Drug TrafTicking) Act 1996.

Meanwhile, Customs has earlier this week intercepted 130 kilos of marijuana. The drugs were hidden in a container from Panama. Which appeared to have made quite a journey. The beginning station was Aruba, then the container was shipped to Jamaica, then from Panama City to be shipped to Curaçao. Whether our island was also the end point, is not known. Police are investigating the case.—CB Report

AsBAA praises new Bizav customs port at Zhuhai Airport

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alks with the Zhuhai municipal government, Chinese government, Zhuhai Airport Authority and the Civil Aviation Authority China (CAAC) resulted in temporary International China Inspection and Quarantine (CIQ)

services at Zhuhai Airport for nonscheduled business aviation movements, the Asian Business Aviation Associatin (AsBAA) announced today. Following the approval late last month, China’s National Port Administration Office opened a temporary customs port on January 1. The approval is renewable on a six-month basis.

During the “approval period”

from January 1 to June 30, crewmembers of foreign business aviation flights can enter and exit China via the temporary business aviation port at Zhuhai Airport.

AsBAA said the addition of a customs port for business aircraft operators at Zhuhai is “very encouraging.”

In addition, Zhuhai Airport officials also approved operations of

smaller general/business aviation aircraft, including turboprops and rotorcraft, that are not welcomed at nearby major international hubs such as Hong Kong, Macau or Shenzhen due to capacity. “Zhuhai will now accept these aircraft for arrival and departure to regional domestic airports or smaller international airports in the region for the first time,” AsBAA said.

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Govt to boost exports through trade deals JAKARTA: The government aims to increase non-oil and gas exports in the coming years through trade deals and deregulation policies in an effort to reverse the recent export decline.

Trade Minister Thomas Lembong said on Monday that his ministry targeted to boost the non-oil and gas export value by 9 percent this year and to accelerate export growth to an annual rate of 11.5 percent within three to four years.

“Personally, I’ll be happy if our trade balance is stable. If there’s no contraction or only a little contraction this year, that would already amount to a turnaround,” he said in a press briefing.

Taiwan LcD monitor shipments decline over 10% in 2015 aiwan makers’ shipments of LCD monitors reached 19.82 million in the fourth quarter of 2015, down 6.2% on quarter and down 10.9% on year, according to Digitimes Research.

Foxconn Electronics held the number one position in shipments in the third and fourth quarter followed by Wistron.

Heading into the first quarter of 2016, Taiwan makers will see shipments drop 3.5% on quarter to 19.12 million as the industry enters the slow season. For 2015, global LCD monitor shipments declined 10% on year to 123 million, with Taiwan makers accounting for 79.78 million to represent a 64.8% proportion – up from 62.9% in 2014. In 2016, global shipments will decline another 2-3% on year, said Digitimes Research. Meanwhile, Buoyed by the levels and changes of demand both in the domestic and global activity, cargo

Ports & Shipping

russian port of kozmino exports 30.4m tonnes of oil in 2015

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MOSCOW

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traffic at India’s twelve major ports witnessed an increase of 13.45 million tonnes during the period of April-December-2015 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 (April-June), 3.8% in the second quarter (July-September) and 1.4% in the third quarter (OctoberDecember). Volume of seaborne cargo is essentially in the nature of derived demand and is mainly shaped by the levels and changes in both the global and domestic activity.

he Russian Port of Kozmino exported 30.4 million tons of oil in 2015, which represent an increase of 5.5 million tons in comparison with previous year.

From the total export 14.7 million tons were for China, 8.7 million tons for Japan and 3.2 million tons for South Korea. The oil terminal is major export point for for Transneft Siberian oil for Eastern Asia.

The oil terminal is connected with pipeline system from Eastern Siberia to PaciTic Ocean, which for last 6 years since built transported 123 million tons of oil to the Port of Kozmino, making it one of the most important export terminals in the Russian federation.

In 2016 the Port of Kozmino expect exports of 31 million tons of oil for Asia-PaciTic region, which should continue the growing trend and represent an increase of 0.6 million tons. The increasing oil export through the port, forced the authorities to implement capacity improvement program, carrying out works for reconstruction of water

area by dredging Berth No 2, which should be capable for handling of oil tankers with deadweight up to 150,000 DWT. Increasing the capacity of the oil terminal will also be secured by the construction of new oil storage tanks in the port tank farm. Port of Kozmino is oil terminal located near Nakhodka, Russia and close to Russia’s borders with China and North Korea, on the coast of the Sea of Japan. Port of Kozmino is the terminal point of the Eastern Siberia – PaciTic Meridian pipeline. With the opening of its terminal on December 28, 2009, the port of Kozmino instantly became Russia’s third-most important oil outlet.

Shipping tonnage drops 30% in 2015

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WASHINGTON

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slumping steel industry led to declines in several key commodities across the Port of Toledo’s docks last year that accounted for most of a nearly 30 percent plunge in cargo tonnage.

Iron ore and coal, the port’s two biggest commodities by weight, both fell by more than 43 percent, with the former entirely reTlecting steel’s woes and the latter hit both

by that and declining coal consumption by electric utilities in both the United States and Canada. Port ofTicials acknowledged those declines Thursday but also highlighted some bright spots in the numbers.

Joe Cappel, vice president of business development for the ToledoLucas County Port Authority, said a rebound could be coming in 2016 in the critical general-cargo sector, which includes high-value shipments such as aluminum, machinery, and industrial equipment. Reinstatement of federal tax incentives

for wind-power development projects should bring back shipments of wind-turbine components in 2016 that came through the Toledo port earlier this decade, Mr. Cappel said.

“Coal and ore may continue to be a bit of a challenge,” but efforts to diversify Toledo’s cargoes will continue, and leads on wind-related trafTic and machinery imports for local reTineries are both promising, he said. Betty Sutton, administrator of the federal Saint Lawrence Seaway Development Commission, said declining coal and ore volumes were hardly unique to

Thursday January 21, 2016

Qinhuangdao port handles record 1m Teus in 2015 ship docks at the Qinhuangdao Port yesterday in north China’s Hebei Province. The port posted a record containerized cargo movements in 2015 of 1 million TEUs (twenty-foot equivalent units), a 38 percent rise from the year before. Meanwhile, The delayed Colombo Port City project, a plan to create a South Asian financial hub, has been given the green light, the Sri Lankan ambassador to China confirmed 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 financial 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 highend urban complex in South Asia concentrating industries, including finance, tourism, logistics and information technology”, and the whole project will create more than 80,000 jobs, according to the Chinese Embassy to Sri Lanka.

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Toledo, while the local port’s grain performance, lower than in 2014, was better than many others’. “In 2014 we had a great fall harvest, plus a large carryover from the previous year, which we didn’t have in 2015,” Ms. Sutton said. Also affecting grain in 2015, she said, was a bumper wheat crop in Russia that depressed world prices, causing American exports to drop. Toledo’s aluminum trafTic, Ms. Sutton said, supports jobs not only at the port but in the auto industry, and machinery and equipment are also important growth areas.

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Quetta Customs seizes foreign currency worth Rs 0.5m KARACHI: Directorate 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.

Thursday, January 21, 2016

CUSTOMS BULLETIN

faisalabad customs intelligence seizes smuggled items worth rs 14 million FAISALABAD nAeeM SHeikH

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he Customs Intelligence and Investigation confiscated smuggled items worth Rs 14.16 million involving duty/taxes to the tune of Rs 10.91 million and registered four cases during second week of January 2016. Following the directions of Customs Intelligence Additional Director Azmat Tahira, the teams conducted various raid by curbing smuggling attempts in the regions. The official impounded a Toyota Mar-X car model 2005 worth Rs 4 million and three vehicles worth Rs 6.9 million, which were used for the transportation of the smuggled items. Besides, 520 bags of tamarind (imli), 35 bags of cinnamon (darchini) worth Rs 2.83 million, 20 bundles of cardamom and 25 bags of dried ginger worth Rs 3.89 million were confiscated during the said period.

The customs intelligence officials held the items under Section 156(1)89 and 90 ibid read with Section 3(1) (3) of the Import and Export Control Act, 1969.

Adjudication collector raja Tahir hears 3 cases involving rs 12.7m FAISALABAD

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ollectorate of Customs Adjudication Collector Raja Tahir Majeed has heard three cases involving duty/taxes to the tune of Rs 12.75 million.

As per details, the collector heard the cases of smuggled vehicles and cloth. The Faisalabad Customs Intelligence and Investigation Tiled two cases involving

duty/taxes amounting to Rs 9.258 million, while another case was Tiled by Khushab Field Investigation Unit (FIU) involving duty/taxes valued at Rs 3.498 million. Collector Raja Tahir Majeed has adjourned the cases until next hearing. Meanwhile, Customs Adjudication Deputy Collector Asma Hameed heard 25 cases Tiled by Anti-Smuggling Organisation (ASO) of Mianwali, Sargodha and Jhang, and Customs Intelligence and Investigation.

As per details, the deputy collector heard 16 cases of Faisalabad ASO against the accused persons

named Muhammad Dilshad Ali, Ghulam Mustafa, Safar Khan, Zafar Iqbal, Bashir Ahmad, Muhammad Waseem, Akhtar Ali, Muhammad Ashfaq, Asif Hussain, Khalid, Al Rahman Traders, Muhammad Ajmal, Mukhtar, Muhammad Amjad, Ammar Yasir, Muhammad Zahid, Muhammad Anwar, Masood Akbar and Muhammad Farooq.

Meanwhile, ASO Sargodha referred two cases against the accused persons namely as Nazim Bashir and Abu Umer Yasir, while Mianwali ASO Tiled a case against Muhammad Suleman. Deputy Collector Asma Hameed also heard

three cases Tiled by Jhang ASO against Laiq Din,Baz Gul, and Zahoor Khan, besides hearing a case against Muhammad Shazad Enterprises Tiled by the Faisalabad Customs import branch. On the other hand, the Sara-e-Muhajir Customs Intelligence submitted two cases against Imran Khan and Muhammad Naveed, which were heard by the court. Meanwhile, The Model Customs Collectorate Appraisement has conTiscated a consignment worth Rs 1.519 involving duty/taxes amounting to Rs 788,466 as it was imported through mis-declaration.

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

As per details, Examination Deputy Superintendent Anwar Perwaiz, Inspector Shafiq 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 misdeclaring their description on the transshipment documents.