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pAkiSTAN’S FirST iNDepTH NewSpAper oN CuSTomS

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Vol 1 Issue No. 283

Karachi, Wed January 27, 2016

KARACHI

AFTAB CHANNA

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ustoms Preventive Additional Collector Headquarters Khalid Hussain Jamali has said the Pakistan Customs, in its ongoing anti-smuggling drive, seized a huge quantity of electronic and merchandised goods in the process of re-export on fake and forged documents. Talking to Customs Today exclusively, the Additional Collector said that in sequence to previous seizure of smuggled goods meant for Transshipment Permit (TP), the collectorate preventive enhanced vigi-

Price Rs. 14.00

lance and asked the export collectorate to point out goods to be re-exported. In this case, a clearing agent Oiled goods declaration for re-export at export collectorate, which was found fake and forged. Accordingly, the goods worth Rs 272.82 million involving Rs 155 million duty and taxes were seized, he added. The goods included merchandise/ contraband goods of high slab duty such as mobile phones, perfumes, LED TVs, refrigerant gas, etc. An FIR was lodged and arrests were made in the case. Moreover, the Customs Preventive also seized another consignment of mobile phones totaling 71400 mobile sets which were imported on vague description and under single PCT i.e “Electronic Goods and Stationery”.

FBR Chairman Nisar demotes two former principal appraisers

Collector Qurban Ali to inaugurate WeBOC at Torkham today

CPEC beneficial for entire South Asia: Mushahid

Customs seizes gas cylinders worth Rs30m on Asif Marghoob’s directive

Pakistan seeks strong trade ties with Turkey

FBR Chairman Nisar Muhammad, by using his discretionary powers | See pAge 02 |

Collector Customs Qurban Ali will officially inaugurateWeBOC system atTorkham | See pAge 03 |

PML-Q leader and Senator Mushahid has said that the CPEC South Asia | See pAge 04 |

Custom Intelligence has seized 100 gas cylinders of foreign origin SF-6 4500 kg | See pAge 12 |

Pakistan and Turkey enjoy excellent diplomatic relations since long FCCI | See pAge 09 |

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Sindh Excise starts property tax survey against defaulters Wednesday, January 27, 2016

National

KARACHI: Excise and Taxation Department Sindh has started survey of property tax in Lyari, Usmanabad, Garden and other adjacent areas of Karachi. Incharge of survey team, Shabir Somroo while talking to Customs Today said that the survey was started last month but due to some reasons it was not completed. He said that notices were also issued to the tax defaulters who are residing in the above mentioned areas. Properties of tax defaulters will be sealed. Answering to a question he said final notices were issued to three flour godowns, four residential quarters and eight bungalows in previous survey and deadline was given to clear outstanding tax dues, which is already expired on 20th January 2016.

FBr Chairman Nisar demotes two former principal appraisers

pakistan, Thailand start second round of talks on FTA ISLAMABAD

m ArSHAD

KARACHI

AFTAB CHANNA

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ederal Board of Revenue (FBR) Chairman Nisar Muhammad Khan, by using his discretionary powers, has demoted two former principal appraisers by converting major penalty of ‘dismissal from service’ into ‘reduction to lower ranks’.

In a notiOication issued on Monday, it said that on a departmental appeal Oiled by Sadar Amin Farooqui, ex-principal appraiser, Customs Collectorate of Exports Karachi and Naimatullah Alvi, exprincipal appraiser, Customs Collectorate of Preventive Karachi against major penalty of ‘dismissal from service’, the FBR chairman in his capacity as the Appellate Authority has convert the major penalty of ‘dismissal from service’ into another major penalty of ‘reduction to lower stage in time scale’ (two stages lower). It added that “The ofOicers are re-instated into government service with immediate effect and the intervening period of both the ofOicers are from February 13, 2015 till his reinstatement into service is treated as extra ordinary leave (EOL) without pay.

Meanwhile, In a bid to lower ratio of borrowing to Gross Domestic Product (GDP), the Federal Board of Revenue (FBR) is about to opt

akistan and Thailand on Monday made a rapid start on talks on Free Trade Agreement (FTA) as both sides quickly reviewed the progress made on the shared notes in the first phase of talks last year. Moreover, officials of the ministries of commerce of both the countries also reviewed the shard documents in the light of major developments taken place during the last one year on economic and business horizons. Sources told Customs Today that both the delegations after inaugural session jointly led

by Additional Secretary Ministry of Commerce Rubina Athar and Deputy Director-General of the Thai Commerce Ministry Sunanta Kangvalkulkij decided to form working groups on several issues. These working groups comprise experts on related issues and will hold in depth discussions for next two days and then come back to their respective delegation heads with proposals and recommendations on given topics. “On the last day, Wednesday, the delegations with the approval of their leaders, will exchange the agreed points and then.

for extra ordinary measures to increase the revenue collections. As per Fiscal Responsibility and Debt Limitation Act 2005 (FLDRA), the ratio of borrowing of the country is fixed at 60 percent of the GDP and

as per economists the current ratio has exceeded the said limit. However, the Finance Ministry is of the stance that the exceeding the limit of Debt to GDP ratio is not a violation of the constitution. Section

3(4) of the said Act, allows government to temporarily depart from the limit. Any such instance is reported to National Assembly through Debt Policy Statement every year by end January.

Customs foils attempt to smuggle smart phones worth rs 20m

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ISLAMABAD

m FAiZAN

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he Customs authorities deputed at Benazir Bhutto International Airport have foiled an attempt to smuggle smart phones from Dubai to Pakistan. The market value of the seized smart phones are Rs 20 million.

Sources told Customs Today that Deputy Collector Shahid Jan received credible information that a

huge quantity of smart phones are being smuggled through Olight No. EK-612 which is arriving from Dubai. He immediately ordered all his staff to checking the luggage of passengers thoroughly.

The customs authorities searched a bag whose owner was avoiding to take it. During the search, the customs teams recovered 450 mobile phones. After examining the travel documents of owner of bag, it was revealed that its owner was informed that customs authorities in Pakistan

got clue of his smuggling attempt so he delayed his journey at the last moments but his baggage was booked.

Customs autorities started further interrogations in this regard. Meanwhile, The Customs authorities deployed at Benazir Bhutto International Airport Islamabad have foiled an attempt to smuggle half kilogram heroin to Saudi Arabia and arrested accused Nazar Hussain son of Abdullah. Sources told Customs Today that Deputy Collector Customs Shahid Jan received secret informa-

tion that an attempt will be made to smuggle heroin to Saudi Arabia via Saudi Airline Flight No. EK-615 which was bound for Madinah. He immediately constituted a customs team to check all the passengers thoroughly. During the checking process, the customs authorities recovered half kilogram of heroin from the luggage of Nazar Hussain who belongs to Chiniot. The heroin was hidden in the secret parts of his luggage. Customs authorities arrested the passenger and produced him be-

fore the customs court which rejected his bail plea and sent him to jail for further interrogations. Meanwhile, Customs authorities deputed at Benazir Bhutto International Airport foiled bid to smuggle 912 smart phones abroad. The market value of seized smart phones are Rs 20 million. Sources told Customs Today that Deputy Collector Shahid Jan received credible information regarding a smuggling attempt through Etihad Airways which was coming from Abu Dhabi.

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Appellate Tribunal staff invited to attend Customs Day ceremony ISLAMABAD: Customs Collectorate, Islamabad has invited the staffers of Customs Appellate Tribunal to take part in a ceremony being held on the International Customs Day, January 26 (Tuesday). The invitation card stated: “Collector of Customs MCC, Islamabad, cordially invites you on the International Customs Day”.

The invitation added that chief guest and others would address the ceremony. Staffers, who had been invited assumed that FBR chairman or the Member Customs would join them at the ceremony. Customs would hold the ceremony at Dryport Margalla Railway Station, I-9, Islamabad.

Customs finalises arrangements to mark int’l Customs Day

Wednesday January 27, 2016

National

Collector Qurban Ali to inaugurate weBoC at Torkham

KARACHI

S r kHAN

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he Pakistan Customs has finalized all its arrangement in order to mark “World International Customs Day” today. According to details, Chairman Federal Board of Revenue (FBR) Muhammad Nisar Ali Khan and Member Customs Nasir Masroor Ahmed will witness the flag hoisting ceremony at Custom House-Karachi at 9am. After the flag hoisting ceremony, a tableau by the children is to be presented to mark the “World International Customs Day”. Subsequently, a ceremony to burn the seized contraband items and to eradicate the foreign smuggled liquor bottles at Customs Colony located at Mauripur Road.

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iHC adjourns hearing of case filed against FBr ISLAMABAD

NAeem uLLAH TAriQ www.customsbulletin.com

he Islamabad High Court has adjourned the hearing of writ petitions filed against the Federal Board of Revenue (FBR) until February 1. A single bench of the IHC comprising Justice Athar Minallah heard the petitions and adjourned for further arguments.

These petitions had been filed by Oil and Gas Development Company Limited (OGDCL), Zaver Petroleum Corporation Limited, Pakistan Oil Fields Limited Government Holdings Private Limited, Mari Petroleum Limited, OMV Maurice Energy Limited, OMV Pakistan Exploration GMBH, Attock Oil Company Limited and M/S Rally Energy Safedhok Limited.

Respondent in the aforementioned cases, FBR, was represented by advocate Hafiz Munawar Iqbal.

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ISLAMABAD

m FAiZAN

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ollector Customs Peshawar Qurban Ali will ofOicially inaugurate WeBOC system at Torkham. An opening ceremony will be held in this connection at 2 p.m.

Sources told Customs Today that all ofOicials concerned of the Customs Department will also be present on the occasion. Sources said that Collector Qurban Ali also informed higher authorities that all arrangements were Oinalized to launch WeBOC system at Torkham and an experiment was conducted by using mineral coal and waste cotton on WeBOC system. Launching of WeBOC was delayed because authorities wanted to launch it on the International Customs Day. Meanwhile, Collector Customs Peshawar Qurban Ali issued directives to shift Torkham Customs from One Customs to WeBOC. Sources told Customs Toady that initially raw cotton and mineral coal will be cleared through WeBOC. He said that after this more imports will be added in WeBOC system. He hoped that after launching of WeBOC system marginable decrease will be witnessed in mis-declaration and under-invoicing.

Meanwhile, The Model Custom Collectorate Peshawar has collected Rs 1,511.31 million under the head of duty/taxes during December of current fiscal year 2015-16.

According to the official figures available to Customs Today, the Peshawar Customs collected Rs 634.09 million in the wake of custom duty and showed growth to the tune of Rs 128.06 million, as it had generated Rs 506.03 million during same period in 2014. In term of sales tax on imported items, it collected Rs 389.21 million against Rs 469.62 million, which was collected last year. The customs generated Rs 164.88 mil-

A fine example of the efforts made by pakistan Customs clearance known as weBoC and i am glad to say that it is able to process more than 97% of trade, import, export or transit crossing pakistans borders

iHC dismisses FBr plea to retake Ayyan’s passport ISLAMABAD

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he Islamabad High Court (IHC) on Monday dismissed a petition Oiled by the Federal Board of Revenue (FBR), challenging the special judge’s order allowing super model Ayyan Ali to take her passport back.

Sources told Customs Today that Additional Collector Customs Collectorate, Islamabad, Adbul Waheed Marwat had filed the petition in the IHC, seeking the court to set aside the impugned order given by special judge, customs and taxation, Rawalpindi/Islamabad. The special judge had allowed Ayyan Ali to collect her passport from the Customs Department. As the proceedings started, Ayyan’s counsel Advocate Latif Khosa appeared before the court and argued that the

said petition could not be assumed at the forum of IHC since a special court had already been notified to deal matters related to the case.

IHC judge Justice Athar Minallah questioned the FBR appellant counsel, Farhat Nawaz Lodhi, to answer the objection raised by responding counsel and asked him to inform the court how it could take up the matter since the federal government had already notified another forum to hear the related petitions.

lion in wake of sales tax levied as federal excise duty on the import of palm oil but during December of last year, it had collected Rs 208.36 million, which was Rs 43.48 million more than the current collections. Similarly, in term of sales tax levied as value addition on commercial importers, the collection is standing at Rs 61.14 million against the previous year collection of Rs 58.15 million with total difference of Rs 2.99 million.

Customs Court hears 14 cases on monday he Special Court of Customs Taxation and Anti-Smuggling heard 14 different cases, including pre-arrest bail pleas of suspects on Monday. The cases including of tax evasion, customs, smuggling and narcotics, were scheduled for the day’s hearing. Most of the cases were adjourned without any proceedings because parties concerned and lawyers did not appear in the court.

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Mobile phone imports up by 7.9% to $375m in six months Wednesday, January 27, 2016

Business

ISLAMABAD: The mobile phone imports into the country increased by 7.9 percent to $375.063 million during first half (July-December) of ongoing fiscal year as compared to $347.564 million of same period last year. According to Pakistan Bureau of Statistics (PBS), overall telecom imports saw significant decline of 7.43 percent during JulyDecember 2015-16 compared to the same period in last year and total imports were recorded at $695.334 million compared to $751.124 million in same period last year.

Other telecom apparatus import also witnessed significant decline of 20.64 percent during this period as it stood at $320.271 million during July-December (2015-16).

pSX closes almost flat at 31074 points KARACHI

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he Pakistan Stock Exchange Tuesday remained all the day in negative zone but gained upward momentum in last session gaining 74.98 points, but dropped all in last minute and closed almost Olat, adding just 9.25 points at 31074.38 level.

The stocks recorded the highest trading level of 31140.11 points and lowest level of 30885.36 points, with the volume of about 108 million shares, having over Rs6.59 billion value. As many as 283 compa-

govt urged to announce oil prices fortnightly LAHORE

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he Pakistan Industrial & Traders Associations Front (PIAF) has asked the government to adjust and announce oil prices fortnightly to give the masses quick relief of reduction in oil prices in the international market.

PIAF Acting Chairman Tanveer Sufi said that presently the oil prices are registering continuous decline but federal government is transferring this relief after one month.

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nies were active; of which 129 advanced, 136 declined and 18 remained unchanged.

Cement was the top traded sectors with 15,446,400 volume, while fertilizer remained second with 13,710,700 volume.

The three top traded companies were Fauji Fert Bin with a volume of 8,131,500 and price per share of 49.60 (1.23), TRG Pak Ltd with a volume 7,885,500 of price per share of 27.54 (0.44), and DGK Cement with a volume 6,835,400 of price per share of 150 (5.32).

The top three gainers were Bata (Pak) with price per share 3400 (50), Sapphire Fiber with price per share of 624.90 (24.89) and National ReOin price per share of 264.91 (12.61).

LAHORE

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ISLAMABAD

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ML-Q leader and Senator Mushahid Hussain Syed has said that the China-Pakistan Economic Corridor (CPEC) is beneOicial for the entire South Asia as it would help open new vistas of development and cooperation in the region. Talking to APP Mushahid said that ‘One Belt One Road’ project would help all countries of the region to develop along with China.

ll the offices of Pakistan International Airlines (PIA) to remain closed across the country on Tuesday and Wednesday after the decision of the Joint Action Committee of PIA (JACPIA) in protest against privatisation of the national flag carrier.

According to the JACPIA, the airline headquarters and booking offices closed from 8:30am to 5:30pm.

People’s Unity of PIA employees President Sajid Gujjar also threatened to suspend flights operations in two days, if their demands will not accepted by the federal government. He said, apart from the airline headquarters, Karachi, all booking offices in Lahore, Islamabad, Peshawar, Multan, Faisalabad and Quetta would remain closed and no fresh air tickets would be issued to any passenger.

The JACPIA office bearers will meet on Wednesday evening again to finalise future action plan, including suspension of the flight operation.

Meanwhile, the PIA management has requested the union leaders not to close down airline’s offices as it may cause inconvenience to passengers across the country.

A The top three losers were Ferozsons (Lab) with price per share of 1000.89 (-52.67), Ghandhara Ind

with price per share of 369.20 (19.43) and Service Ind.Ltd per share of 892 (-17.50).

CpeC beneficial for entire South Asia: mushahid Hussain Syed CuSTomS BuLLeTiN reporT

protest against privatisation: All piA offices to remain shut for two days

“The project reOlects a new vision, new paradigm and a new endeavour,” he added. He said China had always pursued a path of peaceful development. Mushahid further said that after the construction of CPEC, we would attain the conOidence and ability to sustain a medium growth rate. He was of the view that during the next Oive years, we would pursue innovative, coordinated, green, open and shared development which focused on implementing the strategy of innovation-driven growth. He said the Chinese economy was linked closely with the global economy and

asserted that China would remain one of the major economies in the world, which was in the large interest of Pakistan. On the other hand, he said China always stood by Pakistan in its difOicult times adding CPEC was a game changer project not only for Pakistan but for the entire region.

He said the corridor would also ensure people’s well-being and improve their living standards across the board. He said that CPEC was an important consensus reached between our leaders and governments and had the full support of the peoples of the two countries.

railways retrieved over 3,498 acres encroached land in 4 years ISLAMABAD

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he Pakistan Railways has retrieved more than 3,498 acres of its land from encroachers during the last four years. An ofOicial in the Ministry of Railways told APP that a total of 3,498.579 acres of Railways land was retrieved and regularised till November 30, 2015 after a detailed survey and subsequent campaign

launched against encroachers on directives of the Supreme Court. The anti-encroachment drive, he said, was being monitored by the divisional superintendents, railway headquarters and at the level of ministry. Besides a comprehensive policy was in place to prevent further encroachments, making railway ofOicers and police responsible ‘in case of any new encroachment.’ During the current campaign, the ofOicial said, 688 persons were arrested in the anti-en-

croachment operations and they were being trialled in the courts after retrieving the land from their unauthorized occupation. To a question, he said, the issue regarding illegal occupation and possession of Railway land by government departments and institutions had also been taken up with concerned departments. “It is an ongoing exercise, which will continue till the elimination of encroachments.”

The present government, he said, had initiated a project for computeriza-

tion of Railway land record, adding that the work had been entrusted to M/s Urban Unit, under the agreement executed on March 16, 2015, for harmonizing the land record with data of the provincial revenue department.

Accordingly, he said, a Project Management Unit (PMU) had been set up in the Railway Headquarters OfOice, Lahore and preliminary surveys were in progress. The project, likely to be completed in 18 months, would be helpful in identifying the encroached

land, safeguarding the railway property and facilitating transparent commercial utilization of the surplus sites to their optimum business potential.

The ofOicial claimed that the government had shown zero tolerance against encroachments of all kinds and had taken across the board transparent anti-encroachment measures in all the provinces, and as a result there was no fresh as a result of which there has been no fresh unlawful occupation on Railway land.

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ISLAMABAD m ArSHAD www.customsbulletin.com

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akistan and the International Monetary Fund (IMF) are going to start a week long talks on 10th review of extended funds facility (EFF) from today (Tuesday) in Dubai.

On September 4, 2013, the Executive Board approved the three-year extended arrangement under the EFF in the amount of $4.393 billion (about $6.64 billion at the time of approval of the arrangement, or 425 percent of Pakistan’’s quota at the IMF).

Under EFF, IMF provides comprehensive support programs that include policies of the scope and character required to correct structural imbalances over an extended period. Moreover, Established in 1945, the IMF is governed by and accountable to the 188 countries, working to foster global monetary cooperation, secure Oinancial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Prior to tenth review, Pakistan had completed nine reviews of the 36month $6.64 billion extended fund facility (EFF) programme approved by the IMF in September 2013 with total disbursements of about $4.54 billion.

In November last year, Pakistan and IMR successfully concluded the talks on ninth

review of Extended Fund Facility (EFF) paving the way for release of 505 million dollar tranche to Pakistan in the IMF Board meeting next month. “A two-member delegation of the Federal Board of Revenue (FBR) led by Member Strategic Planning, Reforms and Statistics Dr. Muhammad Iqbal will take part in initial level talks while Chairman FBR Nisar Muhammad Khan will join the discussions later” a well-placed ofOicial source at FBR told Customs Today. Moreover, Secretary Finance Dr Waqar Masood, Governor State Bank of Pakistan (SBP) Ashraf Mahmood Wathra and representatives from other ministries and divisions will also be part of Pakistani delegation. In the beginning of current month, the source referred to a meeting of higher ofOicials of Finance Ministry regarding reviewing the preparations for the 10th EFF review with IMF. Then Finance Minister expressed satisfaction with the second quarter results as well as the overall progress made since the 9th Review and directed that the positive momentum should be maintained for the remainder of the Oiscal year.

Although, Dr. Muhammad Iqbal told

Customs Today that he was participating EFF talks with IMF for the Oirst time therefore, he was not very much alive to the procedures and mode of talks, yet another reliable source said that almost for Oirst three days both IMF and Pakistani delegations would hold policy level talks and then move to the Oinal stages of talks in which decisions would be made.

ly essful c c u s r h and im lks on nint n a t s ta paki e d t h e n d e d Fu n d d u l c e con of ext ing the way w e i v e r F) pav million F e ( y t Facili ease of 505 istan in for rel nche to pak next tra ting d o l l a r B o a rd m e e F the im month

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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

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passage of Tax Amnesty Bill

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he National Assembly has passed a bill to amend the Income Tax Ordinance, 2001, giving a new opportunity to traders and others who matter to whiten their black money up to Rs 50 million by paying 1 percent tax. The statement of objects and reasons of the bill point out the factual situation of the undocumented economy and a large number of traders are reluctant to file their income tax returns or hide their actual income, causing billions of rupees annual losses to the national exchequer. The government believes there is a need to change the prevailing culture of tax avoidance and under-reporting and has to give legal cover to its measures to bring the non-filers into the tax net. The government believes the tax amnesty will not only regularise the tax affairs by offering simplified procedure for tax assessment, but will also enhance the number of taxpayers.

However, the critics believe the amnesty scheme will be an injustice to the honest and committed taxpayers who regularly pay their taxes on time and the scheme is also in clash with the government objectives to enhancetax revenues.

According to them, there is a need to change the fundamental reasons which lead to the introduction of such a scheme and the amnesty at one percent rate is also to meager to be allowed. Until some structural changes are incorporated in the tax collection system, the government will have to offer amnesty schemes one after another. However, the critics of the scheme forget the core point which forces the governments not only in Pakistan, but the world over to launch amnesty schemes.

There are foreign banks and tax havens which offer attractive opportunities to the holders of black money and corrupt elements to deposit their money with them and enjoy the profits without going through any official rigmarole. There are not just traders involved in the business, but people from all walks of life, including government officials are the clients of the foreign banks.

It is the time the government should reduce the number of indirect taxes and curtail the rates of direct taxes to encourage people to file their income tax returns.

Fate of iran-pakistan gas pipeline A

LAHORE

Dr AFTAB AFZAL

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fter lifting of economic sanctions, Iran is likely to emerge as the new economic power in the region having free access to the European banking system and the oil market. The country has also hit the jackpot as it is going to receive a huge amount of $100 billion in foreign reserves which were frozen by the United States in the aftermath of sanctions. From Pakistan’s perspective, this is a good omen if the government is really serious in reviving the ambitious Iran-Pakistan gas pipeline project. The project, which was due to be completed

years ago, has been delayed due to international sanctions on Iran. Still there are no official words from the government on the lifting of sanctions and the fate of the project.

Earlier, leaving over $7 billion project with Iran in the middle, the government looked toward Russia for energy resources and signed a deal with the Russian government for the import of LNG. The $2 billion deal covered the construction of North South Pipeline from Karachi to Lahore to transport the imported LNG and the firm, RT Global Resources, was assigned to execute the project. Russian President Vladimir Putin was also ready to visit Pakistan to perform the ground-breaking of the project.

However, now a Pakistani delegation under Petroleum Minister Shahid Khaqan Abbasi is discussing the course of action on implementing the project with Russian officials.

The 1,100-km-long pipeline will have a capacity to transfer 12.4 billion cubic metres gas per annum from LNG terminals in Karachi to Lahore. The first phase of the project is expected to complete by December 2017.

Pakistan will have to provide 15 percent of the total cost while the Russian government will bear 85 percent of the cost.

Russia is one of the largest natural gas producers in the world and is keen to enhance economic cooperation with Pakistan. Now the two sides will dis-

cuss a plan to set up LPG-air mix plants in the areas where pipeline network is not available to supply gas. There are many grey areas where both Pakistan and Russia can develop understanding and increase economic cooperation. Trade between the two countries can also be enhanced as Russia is a big market for various Pakistani products. However, the government should not ignore the immediate neighbor Iran, especially after bottlenecks in the way of economic cooperation have been removed. Both Pakistan and Iran are Islamic countries and have deep religious and cultural bonds. The revival of the gas pipeline will be in the interest of both the countries.

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Ethiopia coffee exports to rise 45% in 2016 ADDIS ABABA: The Ethiopian government has announced intentions to raise coffee exports by 45% this year.This is to be done by offering incentives and increased government support to farmers. Shimelis Arega, a Trade Ministry spokesman said in statement early this month, “Coffee exports will increase 45% to over 260,000 tons this year. “Incentives will help achieve this goal, and they will include marketing linkage, loans for coffee exporters and processors, and the promotion of the Arabica coffee that the country exports at trade shows abroad,” he said. He said in 2014 Ethiopia earned $780 million from exports of 184,000 tons. However Ethiopia also has a strong domestic market. According to World Bank figures in 2014 the coffee sector made up almost half of Ethiopia’s gross domestic product, 84% of exports and 80% of total employment.

pakistan telecom industry under burden of taxes igher telecom taxes are discouraging consumers and companies which are resulting in reduced adoption that is detrimental national productivity, a business leader said.

According to a study, a price increase of 1 percent leads to a decrease in consumption by consumers of ICT goods and services of anywhere from 0.2 percent to 3.8 percent, Patron Islamabad Chamber of Small Traders, Shahid Rasheed Butt said.

He said that according to the World Bank, every 10 percent penetration

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of broadband contributes 1.38 percent to GDP but this is ignored in Pakistan where telecom industry is dying under burden of taxes.

Pakistan’s telecom sector is second highest taxed in the world which has discouraged investors resulting in lower 3G and 4G penetration and dramatic drop in direct foreign investment, he said.

Shahid Rasheed Butt said that DFI plummeted by 72 percent for the fiscal year ending June 30th, while the telecoms industry contributed 50 percent less in taxes compared to the previous year.

He said that biometric subscriber verification has resulted in overall connection numbers dropping by 18 percent while it costs telecom industry 60 million dollars.

He said that cell phones and mobile internet is important tool to reduce poverty therefore policymakers should consider providing relief to telecom industry reeling under heavy taxation.—CB Report

Wednesday January 27, 2016

Chambers

pakistan seeks strong trade ties with Turkey P

FAISALABAD

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akistan and Turkey enjoy excellent diplomatic relations since long which must be translated into economic terms on fast track basis, said Chaudhary Muhammad Nawaz President Faisalabad Chamber of Commerce and Industry (FCCI).

He was talking to Nida Yilmaz, former Secretary General Pak-Turk Businessmen Association in his ofOice here Saturday.

He said that Nida Yilmaz is a close friend of Pakistan. “He has played a productive role in bringing the business communities of the two brotherly countries closer to each other”, he said and added that it is only due to his dedicated and committed efforts that Pakistan and Turkey have launched many joint business ventures while they are also jointly exploring the foreign markets for the Turkish as well as Pakistani exporters.

Nida Yalmaz said that he is very much impressed with the friendly sentiments of Pakistani brethren and it is in this context that he has de-

cided to settle in Faisalabad. He said that the decision to set up Pak Turk School was taken some time ago and work on this project is expected to be launched very soon. Nida also presented unique mural of Turkish calligraphy. Chaudhary Muhammad Asghar former vice president and Abid Masood, Secretary General FCCI was

also present during this meeting.

Meanwhile, Chaudhary Muhammad Nawaz President Faisalabad Chamber of Commerce & Industry (FCCI) has expressed concern over the terrorists attack on Bacha Khan Universality (BKU) Charsada. In a statement, he said that the Government along with Pak Army has been suc-

Smes be encouraged to increase exports

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LAHORE

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he small and medium enterprises (SMEs) should be encouraged to increase exports, revenue and to end unemployment from the country, which will help combat extremism and terrorism.

This was stated by United International Group (UIG) Chairman Mian Shahid. He said that over 96 percent businesses fall under the category of SMEs therefore this sector deserves an independent ministry otherwise government should increase allocation for SMEDA which is doing a good job in its meagre resources.

Mian Shahid said that development of SME sector is linked to the security situation which continue to drag economy down since long. He said that percentage of businesses

not falling under SME sector are joust about four percent which include large scale manufacturing that cannot survive without SMEs. Government and the central bank are paying attention to four percent businesses but the sector having 96 percent share deserves more. SME sector continue to struggle for energy, skilled manpower, energy, value addition and training which cost of energy is casting a shadow over it, he said. Lauding the role of State Bank of Pakistan, he said that commercial banks should not ignore this critical sector which is backbone of the economy. He said government can consider designing a comprehensive support system and establish separate industrial estates for this sector which was playing a vital role for economic security with 30 per cent share in GDP. Meanwhile, The local traders’ body has asked for three percent increase in the GDP to

ensure the survival of the country as the government has so far received over $100 billion in loans and grants which, they said, has compounded miseries of the masses. This was stated by Pakistan Industrial and Traders Associations Front (PIAF) Acting Chairman Tanveer Ahmed SuOi and Vice Chairman Khawaja Shahzeb Akram while talking with a group of businessmen at Quaid-eAzam Industrial Estate. They said that population in the job market is increasing by three percent per annum which can be accommodated only if growth rate is at 7.5 percent, they said. Tanveer SuOi said that the economic situation is not as good as it is told for the last few years while international lenders have predicted that it will be improved gradually in the next Oive years provided projects with Iran and China are completed in stipulated time and law and orders situation being normal.

cessfully nailing down the terrorists while the few remaining terrorists are running here and there to save their skin. He said that almost all of their strongholds have been smashed by the Pakistan Army and they have now left with no option but to hit the soft targets like schools and other civil institutions.

AFH revenues climb 40% in 2014 isted financial advisory firm AFH has revealed total revenue for the full year was up by 40 per cent to £21m from £15m in 2014 with the second half being boosted by acquisitions made during the year.

Consolidated results for the period ending 31 October, published this morning (25 January), also showed earnings before tax rising 115 per cent from £1.3m to £2.8m on the back of 11 acquisitions during 2015.

Excluding the £240,000 non-recurring cost of operating IFS UK Limited, which was acquired on 30 April 2015, as a separate business during its integration and which was anticipated and reported at the time of the acquisition, earnings before tax rose to £3.05m.—CB Report

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BMW opens first engine plant in China Wednesday January 27, 2016

World

BERLIN: German automaker BMW opened its first engine plant in China on Friday.

The plant, based in the northeastern city of Shenyang, belongs to its Chinese joint venture BMW Brilliance Automotive (BBA) Holdings Ltd. It began construction in August 2013.

The plant, which covers an area of 900,000 square meters, is BMW’s first engine plant outside Europe and will mainly serve the Chinese market. It will produce the latest generation of the BMW TwinPower Turbo three- and four-cylinder petrol engines.

The plant has foundry, mechanical processing and assembly workshops. It is the only engine plant with a foundry workshop outside Germany, according to BBA president Anton Heiss at the opening ceremony.

guangzhou Customs seizes 108 infringing watches BEIJING

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ecently, Tianhe Station Customs House (afOiliated to Guangzhou Customs District) intercepted a total of 108 infringing watches taken by two foreign outward passengers.

The infringement involved famous brands such as “ROLEX”, “OMEGA”, and “CHOPARD”. Since the anti-counterfeit and anti-infringement campaign “Breeze”, Tianhe Station Customs has seized more than 10,000 infringing goods taken by passengers.

The Customs will further the search of infringement in entry and exit channels to keep import and export trade in order.

Meanwhile, China National Petroleum Corp, the country’s biggest oil and gas producer, plans to increase natural gas production this

uS Customs seizes raw chickens S Customs and Border Protection agriculture specialists working at Dallas Fort Worth International Airport fined a traveler for attempting to smuggle five uncooked chickens and three packages of pork meat. The traveler, a U.S. lawful permanent resident, arrived from El Salvador when CBP officers referred U.S. Customs and Border Protection agriculture specialists seized five unprepared chickens and three packages of pork meat from a traveler arriving from El Salvador. Poultry and pork products are prohibited because they may carry diseases that are harmful to American agriculture. Before conducting the baggage inspection, agriculture specialists asked the traveler if he had any items to declare. The traveler declared he was carrying fried chicken; however during the baggage exam, agriculture specialists discovered the unprepared chickens and the packages of pork.—CB Report

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year and maintain crude output near 2015 levels.

Natural gas output will go “higher” and oil production will remain “stable,” Deputy General Manager Wang Dongjin was quoted as saying in a statement posted on the company’s website. Details weren’t provided. The Beijing-based company has a “limited amount” of money to invest this year and will spend on oil and gas exploration and projects that improve efOiciency or promote sales, it said.

Producers are struggling after oil’s plunge to a 12-year low on the global market. The price collapse has delayed $380 billion worth of investments on 68 major upstream projects, according to industry consultant Wood Mackenzie Ltd, and has forced suppliers from BHP Billiton Ltd to BP Plc to write down the value of assets and Oire workers.

CNOOC Ltd, China’s biggest offshore oil explorer, has announced a cut in oil output this year for the Oirst time since at least 1999.

Saudi Customs foils attempt to smuggle 14 bottles of liquor RIYADH

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ustoms ofOicials at the King Fahd Causeway have foiled a man’s attempt to smuggle 14 bottles of liquor into the kingdom, the Saudi Press Agency said on Sunday.

The report said the contraband items were attached with adhesive tapes to the suspect’s upper and lower legs and hidden by the man’s thobe. Despite the unusual way of smuggling, customs inspectors managed to detect the liquor following a search, said the report, quoting Fahad Dhufallah Al-Otaibi, head of customs at the bridge linking Bahrain and Saudi Arabia.

A similar technique was employed by another suspect last September, using trousers that had

First import under China-Australia FTA clears Customs

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hanghai Customs District, by using a green clearance channel, fast released 1.2 tons of fresh cherries from Australia on declaration by Shanghai Esen Agro Products Company. It is the first import consignment since ChinaAustralia FTA (Free Trade Agreement) took effect.

“It can be expected that Australian share will grow a lot at even more competitive prices on Shanghai fruit market,” said Huang Xianhua, General Manager of Shanghai

Ouheng Import & Export Co., Ltd. Reportedly, Australian fruits are higher in quality but more pricy due to higher labor cost. Thus the duty reduction will help their expansion on the Chinese market.

According to Shanghai Customs’ statistics, from January to November 2015, totally 586,000 tons of fruits, worth USD880 million, had been imported to Shanghai under preferential trade agreements, respectively up 21.7% and 37.2% year-on-year.—CB Report

pockets tailor-made for liquor bottles. Causeway customs ofOicials also discovered them by conducting body search on the man.

Despite the heavy punishment for peddling liquor in the kingdom, smuggling attempts apparently con-

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tinue. Last week, Al-Otaibi said two shipments of liquor from Bahrain were also seized at the Causeway, including 415 bottles concealed in various parts of a vehicle, and 83 liters of liquor hidden inside the fuel tank reserve of a truck.

russian gDp decreased 3.7% last year he Russian statistics agency Monday said reported that the country’s gross domestic product (GDP) fell 3.7 percent in 2015. The Oigure is in line with an earlier economy ministry estimate, cited by President Vladimir Putin at his annual press conference in December. Russian GDP increased by 0.6 percent in 2014. Russia – whose energy-reliant economy has already been pushed into recession by low oil prices and Western sanctions over Ukraine – has been rocked by the fresh fall in oil prices and ofOicials have come under increasing pressure to react. Russia’s central bank chief Elvira Nabiullina

said last week that authorities have “all the means” needed to ward off instability, as the ruble recovered after slumping to an all-time low against the dollar on Thursday. Finance minister Anton Siluanov said this month that the country must adapt its budget to “new realities”. Putin said last month that Russia had calculated its 2016 budget based an oil price of $50 per barrel, a Oigure he said was an “optimistic” assessment of the situation. With the Brent hovering around $30 a barrel, the Russian government has announced an anti-crisis plan to support struggling sectors of the economy.—CB Report

uS Customs seizes meth worth nearly $1m

U LAREDO

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S Customs and Border Protection (CBP) ofOicers seized a signiOicant amount of crystal methamphetamine in two separate enforcement actions with a combined value of $914,468.

“These were excellent intercep-

tions made by our CBP ofOicers,” said Port Director Gregory Alvarez, Laredo Port of Entry. “I commend the ofOicers for their keen observation skills and interviewing techniques which led to the discovery of this hard narcotic.” The latest seizure occurred on Thursday, Jan. 21 at Lincoln-Juarez Bridge when a CBP ofOicer conducted an inspection on a commercial bus. A 27-year-old

male Mexican citizen resident of Houston, Texas was referred for a secondary examination. CBP ofOicers conducted an inspection of his personal belongings which led to the discovery of 17 pounds of crystal methamphetamine valued at $358,027. The other seizure occurred at the same bridge on Wednesday, Jan. 20, when a CBP ofOicer conducted an inspection on a

commercial bus. A 21-year-old male United States citizen from Houston, Texas applied for entry and was referred for a secondary examination.

CBP ofOicers conducted an inspection of his personal belongings which led to the discovery of 27 pounds of crystal methamphetamine within bags of candy valued at $556,441. CBP ofOicers seized the narcotics in both cases.

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Azerbaijan increases gas export to Turkey BAKU: Azerbaijan supplied 574.54 mcm of gas to Turkey in November 2015 compared to 573.95 mcm, supplied in November 2014, the Turkish Energy Market Regulatory Authority reported. Azerbaijan supplied 5.57 bcm of gas to Turkey in JanuaryNovember 2015. Turkey imported 4.57 bcm of gas in November 2015. Some 3.66 bcm of this volume were imported through pipelines and 916.36 mcm accounted for the import of liquefied natural gas. Azerbaijan’s share in Turkey’s total import of gas in November amounted to 12.57 percent.

The remaining volumes of gas imported via pipelines accounted for Russia (2.38 bcm) and Iran (703.96 mcm).

ports America’s west Coast strategy hurts oakland port

Ports & Shipping

Dubai’s Dp world inks JV deal to develop russian ports

ew Jersey-based stevedore and terminal operating company Ports America will invest in Los Angeles, Long Beach, the Pacific Northwest and western Canada as part of West Coast expansion strategy, but it will terminate a 50-year lease with the Port of Oakland. These locations are suitable for Ports America’s realignment goals, according to the company.

Ports America is planning for expansion and investment opportunities in its existing locations at both the Port of Tacoma and the ports of Los Angeles and Long Beach. In addition, the company was invited into the process for new opportunities in the Pacific Northwest. “This West Coast strategy complements what Ports America already has accomplished on the East Coast by investing in superior equipment and

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ABU DHABI

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D infrastructure at Ports America’s locations such as Port Newark Container Terminal (PNCT), Seagirt Marine Terminal in Baltimore and Miami, where, upon completion of the Panama Canal expansion, the markets will demand it,” according to a statement.

Ports America plans to invest $500 million at PNCT by 2030 for expansion, which is expected to double the number of containers moving through the terminal and create significant economic growth within the region.

As part of its strategy, Ports America is leaving the Port of Oakland, terminating a 50-year lease with the port. The company’s joint venture in Oakland’s Outer Harbor Terminal would be returning the leased property back to the port.—CB Report

ubai-based port operator DP World and the Russian Direct Investment Fund have launched a joint venture to develop ports, transportation and logistics infrastructure in Russia.

Signed on the sidelines of the World Economic Forum in Davos, Switzerland, the deal will give DP

World an 80 percent stake in the new company, while the Russian government-backed fund will hold the remainder, news agency WAM reported. The company will be called DP World Russia and could invest $2 billion to upgrade port infrastructure in different parts of Russia, it added.

Sultan Ahmed bin Sulayem, chairman of DP World, said Russia is an attractive market with a long term growth potential. “This joint venture is an exemplary strategic partnership model,” he

said in comments published by WAM. He added that the Russian Investment Fund has record of successful investment partnerships with international companies, expressing his satisfaction about the DP World partnership with the Russian Fund.

Last month, DP World and other partners said they are investing $1.9 billion in China port terminals until 2020.DP World has three ports in China Qingdao, Tianjin and Yantai according to its website.

Wednesday January 27, 2016

engineering exports fall 16% in Dec ngineering exports, a major chunk of total out-bound shipments, slipped 16 per cent to $5.8 billion in December due to slowing global demand. The figure for December 2014 was $6.9 billion, according to Commerce Ministry data. The overall exports of India contracted 15 per cent in December 2015 to USD 22.2 billion. The exports have been going downhill since December last year due to a global demand slowdown and drop in prices of commodities. Traders are apprehensive that the recent devaluation of the Chinese currency would also impact engineering exports. Engineering Exports Promotion Council (EEPC) said that going by the current trend, the sector’s exports for the current fiscal would come in much lower than the previous fiscal’s USD 73 billion.

“A steep depreciation of the yuan will deal a further blow to Indian exports, which are battling a slowdown in most markets of the world, as shipments from the country will further lose competitiveness against Chinese goods,” EEPC added. Engineering tops the list of the export basket of the country followed by petroleum products and gems and jewellery. The EU accounts for 17 per cent of India’s total engineering exports and the North America 15 per cent. Engineering exports include transport equipment, capital goods, other machinery and equipment and light engineering products like castings, forgings and fasteners.—CB Report

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Lisheen mine in Tipperary makes final shipment

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WASHINGTON

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edanta Resources has said its Lisheen mine in Co Tipperary made its Oinal shipment last week, completing planned closure of the site. The group , which also produces copper, coal, aluminium, lead, iron ore and oil, said mining activity at the zinc and lead mine had stopped in November. The mine’s closure, which was announced last April, will further

tighten the supply of the metal used to galvanise steel.

The zinc market has tightened after last year’s output cuts by Glencore and the closure of the Century mine in Australia. Lisheen employed between 360 and 400 people at full production, Vendanta said.

The mine consisted of an underground mine, concentrator and backOill plant. Operations at Lisheen began in 1999. Over its life, 22.4 million tonnes of ore was mined at the site, at an average grade of 11.63 per cent zinc and 1.96 per cent lead.

Vedanta Resources said Lisheen typically produced about 300,000 tonnes of zinc concentrate annually.

The mine produced 150,000 tonnes of mined metal in 2015. “Lisheen has made a hugely valuable contribution to Vedanta and has also made a very positive impact to the local and national economy, bringing signiOicant employment opportunities to the area,” said Deshnee Naidoo, chief executive, Vedanta Zinc International.

Meanwhile, Latvia’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.

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ANF seizes 500 grammes of cocaine at Wagah border LAHORE: The Anti-Norcotics Force (ANF) has arrested a suspect who is involved in smuggling of 500 grams cocaine at the Wagha border. The accused is identified as Grechan Singh who is doing cloth business in India.

Sources told Customs Today that Grechan Singh was going to India from Lahore for business purpose. During a search at the Wagah border, ANF officials discovered 500 grams of cocaine from his possession. It is pertinent to mentioned here that Greachen Singh has also applied for Indian nationality and after one month he will get his passport and identity card from India.

Wednesday, January 27, 2016

CUSTOMS BULLETIN

Customs seizes gas cylinders worth rs 30m on Director Asif marghoob’s orders KARACHI AFTAB CHANNA

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ustom Intelligence and Investigation has seized 100 gas cylinders of foreign origin SF-6 (4500 kilograms). The market value of the seized goods are Rs 30 million. According to detail, on the directions of Director Custom Intelligence Asif Margoob Siddiqui, Additional Director Nadeem Ahsan and Assistant Director Kaleemullah formed a team headed by Superintendent Mahmood Abbas to conOiscate gas cylinders, which were not only causing loss to the national exchequer but also imposing negative impact on local traders.

The team comprising Deputy Superintendent Rana Insram Rabbani Munwar Ali, and Khuram Saeed raided on a railway godown and recovered 100 cylinders of SF-6 gas and arrested two persons who were identiOied as Shahid Amjad and ShaOiq Awan Talking to Customs Today, Deputy Superintendent Rana Insram said that they were performing duties in a fair-way, adding that Customs Intelligence ASO will not let the smugglers for carrying out their heinous activities.

gwadar Customs to become premier collectorate of pakistan KARACHI

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ustoms Collectorate Gwadar is poised to become premier Customs Collectorate of Pakistan for the purpose of promoting the economy of Pakistan, facilitating the legitimate trade, a comprehensive digitalization of Customs processes and documentation, stopping the illegal cross border

trade, protecting the community and environment, maintaining public health and fulOilling international obligations.

China Pakistan Economic Corridor (CPEC) is going to be a game changer in Pakistan. Gwadar Port and Economic Zones in Gwadar and and Gwadar Port will rise as a state of the art Port of Pakistan in near future. Efforts are underway to link Gwadar port and three land Customs Stations- Panjgur, Mand and BP-250 on the Pak-Iran border to the WeBOC system to facilitate the legitimate trade and reduce the dwell time of goods at the port and

the land Customs Stations.

Customs Collectorate Gwadar is a big Collectorate having jurisdiction spread over more than 88,000 sq.km area of Pakistan and 640 km of coastal line. Most part of the area is barren and industrialization is negligible. This large area situated in the thinly populated Balochistan province of Pakistan is vulnerable to smuggling of nonduty paid and contraband items from the neighboring countries.

Smuggling and illegitimate trade cannot be stopped by the law enforcement agencies only. In Pakistan we police smuggling

through federal and local agencies including Pakistan Customs, FC, Coast Guard, Police, Levies etc.

Smuggling and tax evasion take place when Customs Tariff rates are high, demand of the contraband or restricted items like narcotics, weapons etc is strong, black economy is rampant, job opportunities are low and documentation and digitalization of the economy is not in place.

Though Government will have to initiate a reforms process in all these areas to encourage legitimate trade and discourage illegitimate cross border trade, most of

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these evils can be removed by the documentation of the economy through digitalization. This is the reason Pakistan Customs became a pioneer institution in introducing digitalization in its processes in Pakistan. At most of Customs Stations/Ports end to end Customs solutions have been provided to ensure transparency and save time of the business entities. To guard against under-valuation an important step is being taken by connecting online exporting countries to Pakistan Customs. It may enhance revenues of Pakistan Customs signiOicantly.