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pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 281

Karachi, Sat January 23, 2016

ISLAMABAD

M FAIZAN

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rime Minister Nawaz Sharif has congratulated the Customs Department and the Federal Board of Revenue (FBR) on the progress made so far.

In his message on the International Customs Day, the prime minister said like the rest of the world, Pakistan celebrates the day on January 26 every year to highlight the contribution made by

customs authorities towards maintaining security and integrity of the transnational movement of goods as well as safeguarding the economic interests of their countries.

This is, indeed, a day to appreciate the performance of the Customs in establishing the writ of national and international laws relating to cross-border trade, controlling illicit trafSicking, facilitating economic integration, and collecting revenue for the national exchequer.

But this is also a day for self-analysis – an occasion to evaluate the perform-

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ance of Pakistan’s Customs authorities against global standards and benchmarks, and assess how best to improve outcomes in terms of transparency , facilitation, and creation of a conducive environment for entrepreneurial initiative. From this ventage point, this year’s theme Digital Customs : Progressive Engagement, is certainly very pertinent. Pakistan is already working on these lines, and an automated cargo clearance system, WeBoc, is taking care of more than ninety percent of shipments into and out of Pakistan.

FBR lauded for services to national economy

Hyderabad ASO seizes smuggled Iranian diesel worth Rs 7.4m

Shahbaz lauds Pak-China friendship at business conference

Pakistan Customs to continue treading on the path of modernisation: Dar

Business community strongly condemns terrorist attack on BKU

Customs Intelligence on Wednesday seized contraband LED TVs, cloth | See pAge 02 |

ASO Hyderabad seized smuggled 40,000 liters of Iranian diesel worth Rs 7.4 m | See pAge 03 |

A 100-member Chinese delegation has attended Pakistan-China Business | See pAge 04 |

Dar has expressed the hope that the Pakistan Customs and the FBR | See pAge 12 |

Business community in a meeting at ICCI strongly condemned the dastardly | See pAge 09 |

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AFU detects under-invoicing in clearance of consignments Saturday, January 23, 2016

National

KARACHI: The Air Freight Unit has detected 700 percent under-invoicing in clearance of imported consignments.

Sources told Customs Today that the AFU detected under-invoicing items which were being cleared at the rate of $668 by Dyna Pharma (Private) Limited for importing waste material “yepam” while the actual value of imported waste material is $5555. Sources said that national kitty bears a loss of Rs 845,654 through this mis-declaration. Air Freight Unit already sped up efforts to curb under-invoicing in clearance of consignments.

FBr lauded for services to national economy

FBr revises powers of chief commissioner, commissioners, Ltu-II from Feb 1 KARACHI

AFtAB chANNA

ISLAMABAD

M ArShAD

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he Finance Ministry, while defending position on promulgation of the Income Tax (Amendment) Bill 2016, highly appreciated the services of the Federal Board of Revenue (FBR) for making untiring efforts to stabilize the national economy during the last two years. The Finance Ministry also praised the FBR team led by Chairman Nisar Muhammad Khan for increasing revenue collection signiSicantly as well as broadening the tax base. Parliamentary Secretary Finance Rana Muhammad Afzal Khan while issuing a policy statement on occasion of passage of Income Tax (Amendment) Bill 2016 by the National Assembly said that FBR made enormous contribution in supporting the down trodden national economy by giving a 33% growth in revenue collection in last two years.

Moreover, he said that FBR had also increased the number of taxpayers from 0.75 million to 1.1 million by making untiring efforts. In this regard, the entire credit goes to FBR team that worked day and night without caring hot and cold of weather.

He further said that FBR had devised planning to approach potential taxpayers to bring them in the tax net on the basis of their life style, bank and land transactions as well as number of

he Federal Board of Revenue (FBR) has revised powers, functions and jurisdictions of the chief commissioner and commissioners Inland Revenue, Large Taxpayer Unit-II Karachi under the Income Tax Ordinance, 2001 with effect from February 1, 2016. In a letter, the FBR said, “The Chief Commissioner of Inland Revenue (LTU-II), Karachi shall exercise the powers and perform functions under the Income Tax Ordinance, 2001, the Sales Tax Act, 1990. The Federal Excise Act, 2005, Section 7 of the Finance Act, 1989 (V of 1989) and sub-section (1) of section 10 of Wealth Tax Act, 1963 (Repealed), in respect of the persons or cases mentioned in the Schedules I, II, III, IV.” Moreover, the FBR revised powers and functions of six Commissioner Inland Revenue including: Commissioner Inland Revenue (Zone-I), LTU-II; Karachi, Commissioner Inland Revenue (Zone-II), LTU-II, Karachi; Commissioner Inland Revenue (Zone-III), LTUII, Karachi; Commissioner Inland Revenue (Zone-IV), LTU-II, Karachi; Commissioner Inland Revenue (Information Processing and TFD), LTU-II, Karachi; and Commissioner Inland Revenue (Human Resource Management Division), LTU-II, Karachi.

foreign trips. In this regard FBR has obtained record and data of inSlow of remittances from abroad from the State Bank of Pakistan to monitor the purpose of remittances. This practice will deSinitely result in broadening of tax net signiSicantly. While responding to objections and reservations expressed by opposition members on Income Tax (Amendment) Bill 2016, Rana Afzal Khan said that entire trader community had been taken on-

board on the bill because thorough consultations were held with trade bodies as well as representatives of chamber of commerce and industry over the country. “The bill is aimed to bring traders in the tax net because traders community has 25% share in the national economy whereas its share in revenue collection was far lesser, therefore, lethargic deliberations were conducted with traders to take them into conSidence on this bill”

he maintained. He further clariSied that bill was not an tax amnesty scheme as had been introduced in the past, but an effort to bring more and more people in the tax net by offering them incentives. “However, members of the parliament have been exempted from this scheme just because of the fact that almost all MPs were regular taxpayers therefore they needed to be differentiated from the non taxpayers” he observed.

FBr receives 8 complaints out of 60,000 gDs under Att

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ISLAMABAD

M ArShAD

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ue to good performance of the Pakistan Customs, the Federal Board of Revenue (FBR) received only eight complaints out of total 60,000 Goods Declarations (GDs) pertaining to the Pak-Afghan Transit Trade during the last two years.

“Although Afghan Transit Trade has been a problematic area, yet

the FBR has taken multiple steps in coordination with the relevant stakeholders in order to streamline the operational aspects over the past few years,” Sources at the FBR told Customs Today.

Measures taken by the FBR include re-negotiation of APTTA 2010, introduction of Pakistan Customs automated system (WeBOC) for processing of Afghan transit cargo as well as usage of risk management systems for clearance and selection of cargo meant for exam-

ination. “Moreover, FBR also took steps like reduction in the scanning of Afghan transit cargo from 100% to 20% and clearance of 85% to 90% of Afghan transit cargo on the same day and establishing electronic data interchange between Pakistan Customs and Afghan Customs for real time exchange of data for this purpose” the source added.

To a question regarding disposition off of the eight complaints received by FBR, the source added that the said complaints were re-

ceived in FBR, Directorate General of Transit Trade (DGTT) and the Federal Tax Ombudsman (FTO) pertaining to Afghan transit trade.

However, out of eight complaints, three complaints were filed with the FTO which were investigated and the FTO did not find any maladministration on part of the department. Therefore they were disposed off in favour of the department accordingly.

Similarly, the source said that the remaining five complaints were

filed with the FBR/DGTT. Complaints regarding delay in auction, transporters strike and hiring of private persons/lampoons were investigated and addressed to the satisfaction of the complainant.

Regarding complaint of noncleared cargo belonging to US Army/ NATO/ ISAF at Karachi ports, the source said that a Joint Inspection Team (JIT) had been constituted by the Ministry of Defense for inspection of the said cargo and its subsequent disposal.

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FST adjourns hearing of plea filed by ex-registrar until Jan 25 ISLAMABAD: The Federal Service Tribunal (FST) has adjourned the hearing of a petition filed by its former Deputy Registrar, Saiful Islam, who was dismissed for minor disciplinary dispute. A division bench of the FST comprising Arshad Bhatti and Muhammad Javed Kasi heard the case of the former deputy registrar who was dismissed in 2009 for not obeying the orders of the then chairman, Tanveer Bashir Ansari. The bench would resume the hearing of the case on January 25.

It is pertinent to mention that this case once also heard in Supreme Court of Pakistan, which had remanded the case back to the Federal Service Tribunal in 2015.

Ihc postpones hearing reference filed by M/s pak telecom Mobile

Saturday January 23, 2016

National

hyderabad ASo seizes smuggled Iranian diesel worth rs 7.4m

ISLAMABAD

NAeeM uLLAh tArIQ www.customsbulletin.com

he Islamabad High Court (IHC) on Thursday adjourned the hearing of an Income Tax Reference (ITR) involving chargeable Federal Excise Duty (FED) amounting to Rs 5 billion. A division bench of the IHC comprising Justice Noor ul Haq N Qureshi and Justice Athar Minallah, heard two interlinked income tax references. The bench adjourned hearing after brief arguments by the parties. Pak Telecom Mobile Limited (Ufone) had filed both references through Advocate Sardar Ahmed Jamal. Both references were filed against additional commissioner Inland Revenue.

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Lhc rejects drug peddler’s plea against conviction LAHORE

MuhAMMAD NAwAZ www.customsbulletin.com

he Lahore High Court (LHC) has rejected the application against the seven years conviction filed by a drug smuggler. As per details, two members bench headed by Justice Alia Neelum heard the case of Ashiq Hussain where his counsel argued that trial court has decided the case on weak evidence, adding that no any independent witness was presented during the trial. On the other hand, counsel for Anti-Narcotics Force Tariq Saleem Shiekh countered the views by saying that the ANF had arrested the accused red-handed while smuggling the drugs. He further stated that culprit has also confessed during the interrogation that he used to smuggle drugs to other cities from Faisalabad. The court after hearing the arguments rejected the application of the convicted person.

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HYDERABAD

ASLAM ANJuM QureShI www.customsbulletin.com

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SO Hyderabad seized smuggled 40,000 liters of Iranian diesel worth Rs 7.4 million which also involves duty and taxes of Rs 18,08,000 during a crackdown. Sources told Customs Today that Collector Customs Dr Ahmed Mujtaba Memon received credible information regarding smuggling of Iranian diesel .

After receiving the tip off he immediately formed a team under the supervision of Additional Collector Omer ShaSique which also includes Deputy Superintendent Sikander Akbar Pahnwar, Inspectors Anwar Ahmed Siddiqui and Waqar Ahmed Baig, Syed Nazim Ali and other staff a took part in the operation. The ASO team intercepted a oil tanker bearing registration No 8594- near Super Highway at Hyderabad and recovered 40,000 liters of Iranian diesel along with oil tanker. The team asked the driver of the vehicle to produce legal document regarding the legal possession of Iranian diesel but he failed to provide any document s on which ASO seized the ASO team conSiscated the diesel besides impounding the oil tanker under the prevailing customs law.

Meanwhile, The Model Customs Collectorate Anti-Smuggling Organization (ASO) seized smuggled goods, including an oil tanker worth

Rs 10.6 million in November, 2015.

Following the instructions of Collector Dr Ahmed Mujtaba Memon, the ASO team started anti-smuggling campaign in the region under the supervision of Additional Collector Umar ShaSique. The ASO team, including Deputy Superintended Sikander Akbar Phanwar, Inspectors Khair Muhammad Pahtan, Momin Shah, Abdul Ghaffer Sheikh, ShaSi Muhammad Jamali, Muhammad Ali Lohar, Mushtaq Ali Lakho

Ad collector omer Shafique which also includes Deputy Superintendent Sikander Akbar pahnwar, Inspectors Anwar Ahmed Siddiqui and waqar Ahmed Baig, Syed Nazim Ali and other staff a took part in the operation

customs Day dedicated to promote digitalisation LAHORE

M hAYAt

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he World Customs Day will be dedicated to promoting the digitalization of Customs processes under the slogan “Digital Customs: Progressive Engagement.”

WCO Members will have the opportunity to showcase and further pro-

mote their use of Information and Communication Technologies (ICT).

According to the World Customs Organization (WCO), the term Digital Customs refers to any automated or electronic activity that contributes to the effectiveness, efficiency, and coordination of Customs activities, such as automated Customs clearance systems, single window concept, electronic exchange of information, websites to communicate information and promote transparency, and the use of

smart phones.

This new era of Digital Customs has transformed the way that Customs operates. Ultimately, it ensures progression, the enhanced ability of Customs Administrations to communicate, process goods, receive and exchange information, coordinate border activities, collaborate on law enforcement actions, and promote transparency. Improved technologies thus have the ability to positively impact and transform the Customs landscape.

and Qazi Abu Tuaseef, sepoys Usman Jonejo and Muahmmad Isa, and Driver Nisar Hamdani participated in the raids. As per details, the ASO conSiscated 18,631 litres of Iranian diesel worth Rs 1.524 million involving duty/taxes amounting to Rs 784,363 and an oil tanker bearing Registration No. C-2769. It also held smuggled electronics including LED TVs and DVD players worth Rs 1.6 million involving duty/taxes amounting to Rs 897,458.

customs court hears 14 cases on thursday he Special Court of Customs Taxation and Anti-Smuggling on Thursday heard 14 different cases, including pre-arrest bail pleas of suspects. Most of the cases were adjourned without any proceedings as the parties and lawyers concerned did not appear in the court. Hearing of pre-arrest bail pleas bail plea filed by Iftikha Ahmad, Mian Waqas Riaz, Mustafa and Raza Mustafa were adjourned for new dates.

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UBL, ICBC sign MoU for strategic business development Saturday, January 23, 2016

Business

KARACHI: United Bank Limited (UBL) signed a memorandum of understanding (MoU) with the Industrial & Commercial Bank of China (ICBC) at a ceremony recently held in Karachi. UBL CEO and President Wajahat Husain and ICBC Pakistan CEO Alex He Shenghu were present at the ceremony. Senior officials from both banks were also in attendance on the occasion. This MoU sets out a conceptual framework and guiding principles for cooperation between the two banks through which ICBC will benefit from UBL’s large presence and banking experience in Pakistan.

pSX rebounds as 100-index gains 197pts to reach 30949 at closing KARACHI

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ulls bounced back on Friday as the Pakistan Stock Exchange (PSX) added 197.22 points to take the tally to 30949.02 points level at closing.

The stocks recorded the highest trading level of 30998.32 points and lowest level of 30751.80 points, with the volume of 131.17 million shares, having over Rs6.53 billion

Forex reserves stand at $20.6b KARACHI

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he total liquid foreign reserves held by the country stood at $20,689.7 million on January 15. Foreign reserves held by the SBP stood at $15,752.3 million while net foreign reserves held by banks are $4,937.4 million. During the week ending 15 January, SBP’s Liquid FX reserves decreased by $72 million to $15,752 million, compared to $15,824 million in the previous week.

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value. As many as 300 companies were active; of which 198 advanced,

85 declined and 17 remained unchanged. Transport was the top

traded sectors with 22,744,000 volume, while technology & communication remained second with 23,370,000 volume. The three top traded companies were PIAC (A) with a volume of 25,031,500 and price per share of 8.48 (1.0), TRG Pak Ltd with a volume 20,454,500 of price per share of 26.76 (1.27), and Byco Petroleum with a volume 7,301,500 of price per share of 17.37 (1.00). The top three gainers were Ferozsons (Lab) with price per share 1115 (50.33), Island Textile with price per share of 759.15 (36.15) and Colgate Palmo price per share of 1565 (25).

69 accused held, rs1.45b recovered; pindi NAB’s performance hailed ISLAMABAD

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cuStoMS BuLLetIN report www.customsbulletin.com

ational Accountability Bureau (NAB) Chairman Qamar Zaman Chaudhary has visited the NAB’s Rawalpindi Regional Bureau for annual inspection. The NAB’s chief was briefed that the Rawalpindi bureau arrested 69 accused, Siled 48 corruption references and recovered Rs 1,441.75 million during the calendar year 2015.

According to the brieSing, the

NAB’S Rawalpindi Bureau received 7,002 complaints which were process according to the law. The bureau completed 288 complaint veriSications out of 333 complaint veriSications in the corresponding period. Similarly, out of 229, 128 were inquiries completed, whereas out of 96 investigations, 52 investigations were completed on merit last year. The chairman appreciated the performance of the regional bureau with 65% operational efSiciency index. The NAB chairman’s inspection & monitoring team was deputed to conduct annual inspec-

tion of NAB Rawalpindi regional bureau for the year 2015. Meanwhile, The Competition Commission of Pakistan (CCP) has ensured compliance by Agricultural Engineering Department Balochistan, with provisions of the Competition Act, 2010 in a tender Sloated for the procurement of bulldozers by removing anti-competitive clauses from the tender. CCP received a complaint from a supplier of bulldozers regarding restrictive clauses in a tender Sloated by the Agricultural Engineering Department (A&E Department), Government of Balochistan.

Big potential exists for fresh food exports to Iran KARACHI

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akistan can easily increase its fruit and vegetable exports to Iran up to $80 million by establishing banking channels with Tehran, said All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) on Thursday. “There is immense potential for export of fresh food products to Iran and Pakistan should immediately send a delegation there,” suggested PFVA Chairman Waheed Ahmed in a press release. Iran can export 3,000MW electricity to Pakistan oximity, Iran is an ideal market for fresh food items,” he said.

Ahmed said there were many rival fresh food exporting countries that were trying to tap the Iranian market after the lifting of international sanctions. “We urge the government to take immediate measures.”

According to Ahmed, Pakistan could export a huge quantity of meat, rice, oranges, mangoes and guava pulp to Iran. At present, due to tough regulatory standards and economic slowdown in Europe, Pakistan’s fruit and vegetable exports have come under severe pressure. Even in Iran, there will be issues of regulatory duties and quarantine rules that Pakistani exporters will have to face.

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pakistan to discuss free trade agreement with Iran: Dastgir ISLAMABAD

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ederal Commerce Minister Khurram Dastgir Khan has said that Pakistan is mulling to negotiate a Free Trade Agreement with Iran after lifting of world sanctions on Tehran.

The minister expressed these view during a meeting with newlyappointed Ambassador of Iran to

Pakistan Mehdi Honardost. He said that draft of FTA template can be forwarded to the authorities concerned in Iran when they will show their interest.

Dastgir said that the 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 had envisioned in their meeting in 2014. He said that the next logical step after preferential

Trade Agreement is an FTA and Pakistan could t Sind a better time to initiate negotiation on new Trade Agreement than right after the removal of sanctions from Iran. He said that two sides need to agree on Sanitary and Phyto Sanitary standards as this proves an unwanted barrier in bilateral trade.

Meanwhile, Cluster-based development of agriculture, industrial and mining sectors should be carried out by keeping in view their fu-

ture 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 cluster-based 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 beneSit from their research and studies on agri products as well as progressive farmers and private sector should also taken on board.

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KARACHI S r khAN www.customsbulletin.com

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hief Collector Enforcement South Zahid Khokhar while expressing his views on International Customs Day said that World Customs community celebrates the “International Customs Day” on 26th January, 2016. Customs plays a pivotal role in economic development through efSicient targeted controls and the facilitation of legitimate trade. In the prevailing scenario, securing global trade requires international cooperation and coordination amongst governments and trade bodies, as well as with other members of WCO. The year 2016 will be dedicated to promoting the digitalization of Customs processes under the slogan “Digital Customs: Progressive Engagement”.

The team Digital Customs refers to any automated or electronic activity that contributes to the effectiveness, efSiciency and coordination of Customs activities, such as automated Customs clearance systems, the Single Window concept, electronic exchange of information, websites to communicate information and promote transparency and the use of smart phones.

I congratulate Pakistan Customs on the

introduction and successful countrywide rollout of indigenously developed new software WeBOC (Web Based One Customs) for automated clearance.

The department is moving on the path of modernization and intends employing sophisticated equipment at border stations, airports and seaports.

I take the opportunity to state that, in era of declining resources and increasing volumes of trade and travel, effective management and information exchange with all allied agencies and partners is a necessity for Customs. The Customs clearance system, WeBOC, connects all internal and external users through electronic interface.

It has the potential to become the lead system which connects all border agencies for data and information sharing so that in time the trader can enjoy a one-window facility making custom and border clearance much more effective, easy and faster for all businesses. Such positive outcomes will contribute signiSicantly towards the realization of Customs’ objectives, including improved revenue collection, border security,

the collection of trade statistics and trade facilitation. I also would like to congratulate all ofSicers and ofSicials of Pakistan Customs on this special day of global importance and hope that the department will continue its commitment in achieving revenue targets, facilitating trade and passenger trafSic, besides demonstrating efSiciency to counter trafSicking of drugs and smuggling of contrabands.

an pakist ion e t a l duc t gratu “ I c o n n t h e i n t ro w i d e ntr y ms o c u s to c e s s f u l c o u u s l y c no and su t of indige ware r o l l o u d n ew s o f t n e do ope devel ( web Base ted a c weBo ) for autom ms c u s to l e a r a n c e” c

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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

State of economy

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n its report on the country’s economy, the State Bank has pointed out notable improvements in the key macroeconomic indicators during the first quarter of the current financial year. However, it also called for requisite steps to ensure sustainability of gains. The report says that economic activity seems to be gearing up as improvements are visible from the changes in key macroeconomic indicators during the first quarter due to noticeable increase in the large-scale manufacturing over the last year.

The monetary easing initiated during the previous financial year continued during the first quarter of the current financial year because of the comfort from visible improvement in macroeconomic environment. The bank says that improvement in security conditions, betterment in energy management and persistently low global commodity prices will further improve economic performance.

Besides, the current account deficit has narrowed due to higher financial inflows, the foreign exchange reserves have recorded all time high and inflation remained on low trajectory. The report says that tax collections could not mark the required growth, therefore, there is a need to gear up eorts to enforce tax laws and widen tax net. To achieve this end, the Federal Board of Revenue has shown growth in tax collections by 16.8 percent in the first half of the current fiscal year. The report holds dwindling exports responsible for overall performance of the economy as exports have recorded a decline year-on-year for the third quarter in a row. There is a need to encourage foreign direct investment for sustainability of the external sector though direct investment from China could be increased due to progress on various infrastructure projects under the CPEC. The country also needs direct foreign investment in exportable sector. The report says that it is encouraging that the IMF programme has been completed successfully and several important reforms have been introduced, like independent statutory Monetary Policy Committee and Credit Bureaus Act. The slow process of privatization and persistent line losses in the power sector are a challenge for the government. As a matter of fact, financial discipline is very important for stability of the economy. Concentrating only on witch-hunt of the business community to achieve tax target will further push the economy into chaos as it is going on in the current scenario.

Stepping up tax collection eorts T

LAHORE

Dr AFtAB AFZAL

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he government is increasingly becoming panicky on tax collections and is making desperate efforts to enhance tax net. As it is struggling to implement new tax regime, it is simultaneously bagging applause from Sinancial experts and criticism from potential taxpayers. The issue of withholding tax on bank transactions is still awaiting resolution, but the matters of sales tax also need immediate attention.

When the government is looking for foreign loans to maintain Sinancial matters, it will be unable to direct and regulate independent economic policies within its juris-

dictions and will have to listen to the advice of the lending agencies.

According to newspaper reports, the International Monetary Fund has advised the government to strengthen capital gains tax regime and adopt a common rate schedule for all Sinancial assets.The government has also been told to improve system of general sales tax collection on goods and services with a single statutory rate under one collection agent and withdraw exemptions for real estate transactions.The donor agency also wants the government to adopt progressive approach with lower tax rates. It says that fairness is essential to introduce tax policy reforms and increase revenue collection. Direct taxes should be

designed and implemented in a way to increase efSiciency and equality. The fund wants implementation of an integrated general sales tax collection system with a single statutory rate under one collection agent. The enforcement of the federal and provincial taxes should be based on valorem rates to increase the revenue yield and that a sense of social justice is a key to boosting tax morale and tax buoyancy.There is a need to strengthen capital gains tax regime by enforcing a common rate for all Sinancial assets and develop a strong relationship between tax-to-GDP ratio and business climate. A Sight against tax evasion should start from highwealth individuals and corporate entities by controlling illegal

transactions, which are used as a tool for tax avoidance and evasion.

As a matter of fact, more are the tough laws, more will be corruption. Therefore, there is a need to introduce institutional reforms to reduce corruption and create an environment conducive for business activities in country. A number of tax regimes have confused the law-abiding taxpayers while potential taxpayers are reluctant to register their names with the tax authorities. The government must ensure implementation of a tax system and a mechanism to ensure collection of taxes in fair manners.

It must be noted that undue pressure on business community will not only have adverse effects on the economy, but it will also lead to capital Slight from the country.

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US to provide Jordan with $1.6b in aid in 2016 AMMAN: U.S. Ambassador in Amman Alice Wells said here the other day that his country is expected to provide Jordan with 1.6 billion U.S. dollars in 2016, the state-run Petra news agency reported.

The U.S. congress has already endorsed 1.2 billion U.S. dollars in aid to Jordan, and the U.S. will extend more aid to Jordan in the field of combating terrorism.

Labeling the ties between the two sides as strategic, she said Jordan’s exports to the U.S. rose by 9 percent in 2015. On the war on terrorism, she said Jordan plays a key role in the U.S.-led coalition against the Islamic State. The U.S. diplomat said the coalition is determined to defeat the IS, added that the IS has lost about 40 percent of territories it used to control.

Fighting the IS in Iraq is easier than in Syria, she said.

cM lauds pak-china friendship at business conference 100-member Chinese delegation has attended PakistanChina Business Opportunities Conference, jointly organised by the Lahore Chamber of Commerce & Industry (LCCI) and Punjab Board of Investment & Trader (PBIT).

Chief Minister Shahbaz Sharif was the chief guest on the occasion, while LCCI President Sheikh Muhammad Arshad, Senior Vice President Almas Hyder, Vice President Nasir Saeed, Consul General of China in La-

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hore Yu Boren, Pak-China Friendship Association Chairman Sha Zukang, Provincial Minister Ayesha Ghous Pasha, PBIT Chairman Abdul Basit, former LCCI presidents, senior vice presidents, vice presidents and executive committee members were also present in the conference.

Speaking at the occasion, Chief Minister Shahbaz Sharif said that China is the most reliable friend, has always stood with Pakistan and helped it in all respects. He said that China is a very important partner in Pakistan economic development and bilateral trade. “The involvement of Chinese enterprises both in term of technical and financial assistance in several development projects is reflective of our cordial relations based on mutual trust and sincerity,” he added. Sharif termed the China-Pakistan Economic Corridor as an energy and infrastructure program with the investment of $46b in Pakistan. He said that $ 46 billion is the biggest investment ever made by China in any foreign country. This program, he said, when completed would help end power outages in the country.—CB Report

Saturday January 23, 2016

Chambers

Business community strongly condemns terrorist attack on Bku B

ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

usiness community in a meeting at Islamabad Chamber of Commerce and Industry (ICCI) strongly condemned the dastardly terrorist attack on Bacha Khan University (BKU), Charsadda and called upon the government to ensure full implementation of National Action Plan to cope with the menace of terrorism effectively.

They stressed for evolving a foolproof strategy to secure all educational institutions across the country in order to curb the repetition of any such tragic incident in future.

They also expressed solidarity with the families of those martyred and injured the deadly assault on BKU. ICCI President Atif Ikram Sheikh, Senior Vice President Sheikh Pervez Ahmed and Vice President Sheikh Abdul Waheed said that such cowardly acts could not shake the resolve of the government and the armed forces to purge the country of terrorists and afSirmed that the whole business community of the country stood shoulder-toshoulder with the government,

armed forces and the security agencies in their Sight against terrorism.

They said the nation was in war against terrorism and stressed that government must ensure availability of adequate security arrangements around all schools, colleges and universities to minimise the possibility of such attacks as the ter-

rorists were targeting the future builders of the nation. They said it was the responsibility of all stakeholders to devise a mechanism to secure the nation’s future and prevent terrorists from executing their nefarious designs. They said such acts of terrorism took a heavy toll on business and investment activities

only centre levies sales tax on goods: FBr

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KARACHI

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n response to contentions expressed over double taxation by a KCCI delegation during its recent meeting with Chairman FBR, Nisar Muhammad Khan. The Federal Board of Revenue (FBR) has issued a detailed clariSication which clearly deSines that the federal government is authorized to levy sales tax on supply and manufacturing of goods whereas the power to levy sales tax on services have been vested with Provinces.

KCCI delegation headed by Haroon Farooki, Vice Chairman Businessmen Group and Former President KCCI along with President KCCI Younus Muhammad Bashir and Sohaib Ahmed Faridi, Chairman GST and Refunds Sub-Committee KCCI recently met Nisar Muhammad

Khan, Chairman FBR recently in Islamabad to express deep concerns over double taxation by federal and provincial authorities, which results in intensifying the hardships being faced by the business and industrial community of Karachi.

Consequently, a clariSication vide letter # C.No.3(2)ST-L&P/2011(PtII) dated January 8, 2016 was issued by the FBR, declaring comprehensive deSinition of Sales Tax levy by the Federal Government and Provinces under the Constitution of Pakistan. FBR pointed out that the manufacturers of Sive zero rated sectors are being charged by FBR @ 3 percent of the processing charges, which is being paid by the textile and other zero rated industries. Since, sales tax on Services Act has levied tax on toll manufacturing of goods, which fall outside the ambit of the provinces as per Serial No. 49 of the Federal Legislative List of the Con-

stitution of Pakistan, hence, the contention of province is not correct.

According to FBR, the supply chain of textile industry starts with the production of cotton, which is converted into Sinished product after going through various processes. The garments or made-ups cannot be manufactured without ancillary industries such as spinning, weaving, sizing, dyeing and stitching etc.FBR elaborated that only in large manufacturing houses and the factory encompasses all these processes in one or more premises owned by the manufacturer. However, in large number of cases all these processes are outsourced due to lack of expertise and paucity of funds to Sinance all these manufacturing activities by a single owner. Therefore, the owner of the goods forward raw material to other manufacturers for processing and converting the same into Sinished goods.

in the country; therefore, a comprehensive solution of this issue was the need of the hour to put the economy the path of sustainable growth.

At this occasion, business community passed a resolution to strongly condemn the attack on BKU and expressed deep sorrow over the deaths in the attack. It expressed heartfelt condolences for the bereaved families and reiterated unwavering support to the operation against terrorists. It called for full implementation of National Action Plan and demanded of the federal as well as provincial governments to utilize all available resources at their disposal for elimination of terrorism from the country.

The resolution urged all political parties and segments of society to stand with the armed forces of Pakistan in their efforts to take the ongoing operation against terrorists to its logical conclusion in order to rid the country of this menace once for all. It reiterated that the business community of the country stood Sirmly with the people of Charsadda in their hour of grief and urged for bringing the perpetrators of such acts to justice as soon as possible.

Saudi Arabia’s imports fall 14.4% in Nov audi Arabia’s imports in November fell 14.4 percent compared with a year earlier, while non-oil exports declined 12.6 per cent, data from the Central Department of Statistics and Information showed.

Non-oil exports dropped to SR15.032 billion ($4 billion) in November 2015, compared to SR17.189 billion in the same month the previous year.

However, exports recorded a rise from SR13.938 billion in October 2015.

Imports totalled SR47.21 billion in November 2015, down from SR55.126 billion during the same month in 2014.

Imports were worth SR54.809 billion in October 2015.

Non-oil exports traditionally account for around 12 percent of the overall exports of Saudi Arabia.—CB Report

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Russia’s alcohol imports fall by 22.3% in 2015 Saturday January 23, 2016

World

MOSCOW: Russia saw a record drop in alcohol imports in 2015 as a result of the weakening ruble and a decline in Russians’ purchasing power, the Kommersant newspaper reported Thursday. Imports of whiskey — the country’s most popular imported spirit — decreased by 22.3 percent to 33.59 million liters. Rum imports dropped by 35 percent to 4.76 million liters, the newspaper reported, citing customs statistics. The data also showed that Russia imported 32.6 percent less wine and 33.7 less sparkling wine last year compared to 2014. The sharpest drop was seen in imports of vodka, which fell by about four times in 2015, attributed to an almost complete halt in vodka supplies from Ukraine. Members of the industry polled by Kommersant attributed the steep decline in alcohol imports to the drop in the value of the Russian currency.

Australian police seize drugs worth over $167m CANBERRA

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lmost half a tonne of methamphetamine and precursors smuggled into Australia in bar stools and soup packets have been seized by federal police, resulting in four arrests.

More than $167 million worth of methamphetamine and enough ephedrine to make 250 kilograms of meth were taken by drug authorities at addresses in Sydney’s Kingsgrove and Penshurst after being imported on shipping containers from China. AFP NSW State Manager Chris Sheehan said the four accused smugglers, including at least two Chinese nationals, were ‘integral members’ of an international drug syndicate. ‘These were not mere low level players,’ Mr Sheehan said.

‘We’re going to allege the people we arrested here in Sydney were

First uS oil export in 40 years arrives in France fter 40 years of restriction, the first US oil export has finally arrived France, having spent three weeks on the sea amidst fierce price wars. The ‘Liquid American Freedom’, as named by the US congress energy and commerce committee members, arrived outside the French port of Fos Lavera at around 6am on Wednesday. According to Financial Times, Vitol, the world’s largest independent oil trader, is expected to unload the cargo at the port near Marseille, where it will then be carried by pipeline to target refineries. The most likely destination is the Cressier refinery in Switzerland, trading sources say, but there is also a pipeline route to the Varo Energy joint venture’s plant in Bavaria. Exports of US crude oil have been restricted since the Arab oil embargoes of the 1970s, but the same was lifted in December as the country laboured to accommodate the largest oil plunge in recent times.—CB Report

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signiSicant and integral members of the syndicate.’ Three of the four accused – a 57-year-old Australian female and two 45 and 50-year-old Chinese men – are alleged to have controlled the operation and been in place to have extracted the drugs from the stools and packets. They have been charged with conspiracy to import and possess commercial quantities of drugs. The fourth man, a 26-year-old arrested in Narwee on Thursday evening, allegedly attempted to possess an amount of the ephedrine. All four will face court later on Friday. The accused could face life imprisonment if convicted. Police will allege the drugs and precursors were smuggled into Sydney on three shipping containers from Ningbo Port in China. The containers were inspected on January 6 and 7 by the Australian Border Force and, after the concealed drugs were located, tracked to their residential destination. China is a common source of methamphetamine imports to Australia.

Malaysia customs seizes 115 boxes of smuggled cigarettes KUALA TERENGGANU

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tate Customs Department enforcement ofSicers seized 115 boxes of smuggled cigarettes worth RM828,920 after a 45minute chase with a lorry which was initially spotted near the Gemuruh Plaza Toll here, on Tuesday.

State Customs Department director Datuk Hamzah Sundang said however, a team of ofSicers from the department managed to block the lorry near the Kuala Terengganu police station at about 7.30pm.

He said the lorry was heading towards Kuala Terengganu from Kuala Lumpur. The driver and his wife, both locals aged in their 30’s were detained to assist investigations. “The case is being investigated under Section 135(1)(e) of

canada customs seizes 10kg cocaine at pearson Airport

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he hunt is on for a GTA drug trafSicker after customs ofSicers found 10 kilograms of cocaine at Pearson International Airport Sunday.

The Canada Border Services Agency (CBSA) says officers were monitoring the offload of luggage from an aircraft originating in Central America Sunday night and noticed an unclaimed backpack with a seemingly-recycled airline luggage tag.

After opening the luggage and ex-

amining the contents, ofSicers found ten brick-shaped bundles. All the bundles were subsequently tested and found to contain cocaine.

The drugs were turned over to the RCMP for further investigation.

“I want to thank our frontline ofSicers for their resiliency and determination in combating illicit activities and keeping dangerous drugs from entering our country,” said Goran Vragovic, CBSA Regional Director General, Greater Toronto Area Region.—CB Report

the Customs Act 1967 for smuggling of cigarettes and not possessing a valid document,” he said at his office today.

The items and the lorry were seized later by ofSicers. Both sus-

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pects are being remanded at the Kuala Terengganu police station for six days to assist investigations. He said those with information about smuggling activities should call the department at 09-6225674.

France’s cpI rises by 0.2% in Dec

he French consumer price index (CPI) increased by 0.2 percent in December 2015 as increasing prices of services and manufacturing products drove up the country’s inSlation rate, ofSicial data showed on Wednesday.

On a yearly basis, the CPI rose by 0.2 percent, the national statistics bureau Insee noted in its monthly report. Last month, the rise in prices stemmed mainly from a seasonal increase of 0.6 percent in costs of some services, thanks to a 2.2-percent rise in transport and communication activities. Manufactured products

also recorded a positive performance after they grew by 0.3 percent over the period. Insee data showed a further drop in energy prices and fresh foodstuffs in December compared to a month earlier. For the seventh successive month, costs of energy lost 1.2 percent while those of food were down by 0.3 percent due to a drop in fresh products as “unusually mild temperatures have stimulated the supply of fresh vegetables whose prices fell notably in December,” according to the statistics agency. In December 2015, the core inflation indicator inched up by 0.1 percent.—CB Report

Bangladesh police seize meth tablets worth $15m

B DHAKA

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angladesh has seized 2.8 million methamphetamine tablets worth an estimated US$10.5 million (S$15 million), in the country’s biggest-ever seizure of the drug, as it struggles to stem its surging popularity, ofSicers said on

Monday. Police conSiscated the drugs in night-long raids on Sunday at a railway station in Dhaka and at an anchorage in the port city of Chittagong, elite Rapid Action Battalion spokesman Major Rumman Mahmud said.

“This is the biggest seizure of yaba tablets in Bangladesh. We’ve arrested three trafSickers including a ring leader in connection with the

seizure,” Maj Mahmud told AFP of their investigation, adding that the drugs were made in neighbouring Myanmar. Yaba, a Thai word for “crazy medicine”, is made of methamphetamine and caffeine and has become a popular drug among young people in the nation of 160 million. Police in the southern town of Teknaf, which borders Myanmar, and the Bangladesh Navy have in re-

cent months seized hundreds of thousands of the stimulant from trafSickers attempting the journey by land and sea. “The Myanmar-Teknaf border was the main trafSicking route when the drug cartel introduced yaba in Bangladesh. But now they are mostly using sea routes after many of their consignments were seized on land,” Teknaf police chief Ataur Rahman Khan said.

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China’s 2015 lottery sales down 3.8% to $56.1bn BEIJING: China’s lottery sales dropped 3.8 percent year on year to 367.88 billion yuan ($56.1 billion) in 2015, official data showed on Thursday. Welfare lottery sales decreased by 2.2 percent to 201.51 billion yuan, while the sports lottery slipped 5.7 percent to 166.37 billion yuan, the Ministry of Finance announced. In December, 34.12 billion yuan’s worth of lottery tickets were sold, a year-on-year decrease of 5.6 percent.

Welfare lottery sales dropped 1.8 percent to 19.21 billion yuan. There were some bright spots last year. The provinces of Henan, Fujian, and Yunnan each saw their lottery sales value rise by more than 1 billion yuan. The revenues are used to cover administrative fees as well as the jackpot, and the rest to improve social welfare and sports facilities.

uAe, germany eye boosting bilateral trade nited Arab Emirates (UAE) Minister of Economy, Sultan bin Saeed Al Mansouri, and Germany’s Ambassador to the UAE, Eckhard Wilhelm Lubkemeier, have here on Saturday discussed ways of promoting economic and trade cooperation between the two countries, Emirati state news agency WAM reported.

Al-Mansouri noted that increasing flights between the UAE and Germany and allowing more Emirati carriers to operate flights to more destinations in Germany would enhance the two-way flow of investments between the two countries.

Some 50,000 Germans visit the UAE every year, he said. The UAE received on December 15 last year the final nod from the European parliament on exempting Emirati citizens from the Schengen visa scheme.

According to the UAE minister, trade

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Latvia’s small port handles 1.37 mln tons of cargo in 2015

Saturday January 23, 2016

Australian-chinese exports to be customs cleared locally n agreement between CCIC Australia and Gfresh will be signed in Sydney to assist Australian seafood exports to China.

With CCIC’s Pre-Shipment Inspection (PSI) system and Origin Traceability services, Australian seafood exporters on Gfresh and their Chinese consumers will be given greater confidence in foreign trading.

Seafood exports from Australia traditionally need to go through a lengthy and complicated process in terms of customs clearance and quarantine inspection. The new China-Australia Free Trade Agreement policies were unable to help when it came to import and export administration.

Services provided by CCIC Australia are mainly through its online PSI system and Origin Traceability Platform. These services are accredited by Chinese authorities and the results of inspections are considered official. The new agreement will mean Australian exporters can have their seafood inspected locally and the loading process supervised by CCIC surveyors. Certificates issued as a result of CCIC’s involvement will be accepted by any related authorities at destination ports in China. The official signing of the agreement will take place at the Australian Seafood Export Seminar, held at Wentworth Sofitel Hotel in Sydney on 24 February.—CB Report

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WASHINGTON

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L between the two sides stood at 45 billion dirham (12.25 billion dollars) in 2014. Some 1000 German companies are doing business in the UAE, while more than 12,000 German nationals are in the Gulf state.

The two officials also discussed ways of increasing trade exchange and enhancing ties between the business communities of the UAE and Germany.

When Al-Mansouri met with Germany’s Minister of Economy and Energy Sigmar Gabriel in the UAE capital early last year, both sides expressed the desire to expand bilateral exchange to 16.30 billion dollars within the coming years. The UAE is Germany’s largest trade partner in the region, the fourth-largest exporter to the UAE.—CB Report

Ports & Shipping

atvia’s small ports handled 1.37 million tons of cargo in 2015, which is 12.6% less than in 2014, when the ports handled 1.59 million tons of cargo, the Transport Ministry informed LETA. The largest cargo turnover was registered at Skulte Port – 585,200 tons. This is 21.2% less than in 2014. Mersrags Port’s cargo turnover decreased 16.7% to

402,900 tons.

Salacgriva Port’s cargo turnover was 352,600 tons – a 6.1% increase.Roja Port handled 31,600 tons of cargo in of 2015, which is 6.1% less than the previous year.

Pavilosta Port handled 2,300 tons of cargo last year. In 2014, the port registered no cargo turnover.

Meanwhile, Total shipments of Portland and blended cement in the US and Puerto Rico in October 2015 were about 9.3Mt, down by 2.2 per cent from the level in October 2014, data from the US Geological Survey (USGS) shows. Shipments for the year through October totalled 77.6Mt, up by 2.6 per cent for the

same period in 2014. The leading producing states for Portland and blended cement in October were Texas, Missouri, California, Florida and Michigan, in descending order, and these states accounted for 41 per cent of the total shipments for the month. The leading cement-consuming states (Texas, California, Florida, Ohio and Illinois, in descending order) received about 37 per cent of the October shipments.

Clinker production totalled 6.9Mt in October 2015, down by 3.1 per cent from the output in October 2014.

Production for the year through October was 62.8Mt, up slightly from the same period in 2014.

Smuggling via cargo lanes falls 25% at borders

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SINGAPORE

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n ICA officer using an “identifinder” to detect radiation in a truck carrying construction sand at the Woodlands Checkpoint.

THE number of smuggling cases detected among cargo vehicles at the Woodlands and Tuas checkpoints fell by around a quarter last year, latest figures revealed.

There were 990 cases of contraband and prohibited items, includ-

ing drugs and cigarettes, down from about 1,290 in 2014.

More than 1.8 million cargo vehicles, such as lorries, crossed the two land checkpoints in both directions, making them two of the busiest land crossings in the world.

The Immigration and Checkpoints Authority (ICA), which announced the figures, is expecting a higher than usual volume of cargo vehicles in the lead-up to Chinese New Year.

On average, about 5,000 cross the checkpoints every day.

“Despite stringent checks, smuggling attempts have not ceased.

Checks are therefore critical and necessary,” said Superintendent Tan Kong Hui, deputy commander of ground operations at Woodlands Checkpoint yesterday.

“We will see an increase towards this Chinese New Year period. We will respond accordingly to the security climate (and) will maintain a certain level of checks on all modes of vehicles.”

Yesterday, more than 1,000 cartons of contraband cigarettes and

more than 19,000 sachets of chewing tobacco were seized at Woodlands Checkpoint in two Malaysiaregistered vehicles.

The seized items, vehicles and the two Malaysian drivers, aged 18 and 41, were handed to Singapore Customs for investigations.

Meanwhile, the ICA and AgriFood and Veterinary Authority yesterday advised travellers – who intend to bring into Singapore festive goods or food from overseas – to check the guidelines before importing them.

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Customs Court sends alleged cell phones’ smuggler on remand LAHORE: The Special Court of Customs Taxation and Anti-Smuggling has approved a 14 day judicial remand of a suspect in a mobile smuggling case. As per details, the Customs Intelligence and Investigation arrested Naseer Khan Afghani when he was attempting to smuggle 330 sets of cell phone from Lahore to Peshawar and intended to smuggle these phones to Afghanistan. On Thursday, the suspect was presented before the Customs Court where Judge Ameer Muhammad Khan sent him on judicial remand for further interrogation.

Saturday, January 23, 2016

CUSTOMS BULLETIN

pakistan customs to continue treading on the path of modernisation: Dar ISLAMABAD M FAIZAN

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ederal Finance Minister Ishaq Dar has expressed the hope that the Pakistan Customs and the Federal Board of Revenue (FBR) will continue to follow the path of reforms and modernization. In his message on the International Customs Day, that will be observed on January 26, the Sinance minister said that this year’s the customs day heralded the launch of the World Customs Organization’s (WCO) year of “Digital Customs “with the slogan “Progressive Engagement”. The “Digital Customs” symbolizes an electronic activity that contributes to the effectiveness, efSiciency, and coordination of customs activities. He said that the governments is cognizant that “Digital Customs” was the way to achieve efSicient service delivery, eradicate corruption and secure the revenue of the government through effective controls at the international borders. It is heartening that Pakistan Customs has made signiSicant progress in digital innovation. Roll out of automated cargo clearance system, Web Based One Customs (WeBOC), across Pakistan has consider-

ably reduced dwell time for cargo clearance and has helped reduce cost of doing business. Similarly, opera-

tionalisation of automated risk management system has improved predictability and transparency in cus-

toms operation also at good level, Dar said, adding that establishment of the electronic data interface with

Afghanistan and China will further expand our economic ties with our neighbouring countries.

ANF seizes 154kg drugs worth rs 514m in different operations ISLAMABAD

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he Anti-Narcotics Force (ANF), in its drive against drug trafSicking, launched operations in Attock, Lahore, Sialkot, Peshawar and Karachi, which led to the seizure of 143 kilograms drugs — 53kg heroin, 129kg charas and 36kg opium.

During the operations, the ANF also arrested eight suspects who

were involved in drug trafSicking, including a foreign woman and impounded three vehicles. The value of the seized drugs is Rs 514 million in international market.

According to details, the ANF Rawalpindi while acting upon information intercepted a Honda Civic Car No. LRL-7799 at GT Road, near Attock City, which led to recovery of 36 kilograms of charas and 36 kilograms of opium concealed in secret cavities of the car during search of the car. An occupant of the car named Haji Gul Syed Khan who is a resident of Peshawar was also held during the

operation. As per reports, he was heading towards Rawalpindi for delivery of drugs.

The ANF Lahore airport team apprehended two passengers including Syed Aziz Shah and a Sri Lankan lady namely Suneeta Nirmila at Allama Iqbal International Airport, Lahore and recovered Sive kilograms of heroin from their luggage. They intended to Sly for Kuwait by Oman Airlines Flight No. WY-344. The ANF Lahore seized a UK destined parcel from a courier service company of Sialkot city and recovered 450 gram heroin concealed inside the garments. The

ANF Peshawar during an intelligence led operation near Goods Adda, GT Road, Peshawar, captured a Toyota XLI Car and recovered 46.6 kilograms of heroin from fuel tank of the vehicle. An accused named Gul Met Shah was also arrested during the operation. After initial investigations, another accused named Muhammad Shahid was also arrested from nearby area. As per initial information, the drug was intended to be transported to Punjab. The ANF Karachi seized a Suzuki Alto car No. AWP529 near Shamama Shopping Mall, New Karachi and recovered 17

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

kilograms of charas tactfully concealed inside seats of the vehicle.

Two persons on board, identiSied as Sarfaraz Hussain and Agha Muhammad, residents of Karachi, were apprehended at the spot. The body search of the accused also led recovery of 900 grams of heroin. In another operation, ANF Karachi arrested a local drug peddler, identiSied as Muhammad Ashraf along with recovery of 1.22 kg charas.

He was arrested from Sherpao Colony, Landhi, Karachi. All cases have been registered at respective ANF Police Stations and further investigations are underway.