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Karachi, Tue January 3, 2017

LAHORE

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ollectorte of Customs Preventive has collected Rs 11,235 million under the head of duty and taxes from July to November during the Sinancial year 2016-17. The collectorate, under supervision of Collector Customs Preventive ZulSiqar Younas, collected Rs 3,085 million as customs duty, Rs 4,900 million as sales tax and Rs 3,129 million as withholding tax during the Sirst Sive months of the current Si-

Vol 2 Issue No. 66

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nancial year. The collectorate collected Rs 119 million federal excise duty as compared to Rs 47 million collected during the same period of the last Sinical year. The collectorate collected all the revenue from airport, Wagah border, railway station, and by Anti-Smuggling Organization besides other stations. The collection was made on account of duty and taxes on import and export from Lahore.

Sources said that Collector ZulSiqar Younis has been visiting all the station and has urged the additional and deputy collectors to achieve the target for the Sinancial year 2016-17.

DG Customs Valuation disposes of revision petition filed by Home Plus

ASO seizes huge quantity of smuggled goods, truck worth Rs 1.65 million

British High Commissioner calls on Ishaq Dar

Collector Zulfiqar monitors anti-smuggling measures at Lahore airport

Multan Customs sends notices to PSO for recovery of regulatory duty of Rs.263m

DGValuation SyedTanveer issues Order-inRevision No.279/2016 under section 25-D | See pAge 02 |

ASOhasseizedahugequantityofsmuggled goods along with oending vehicle | See pAge 03 |

British High CommissionerThomas Drew called on the Finance Minister Ishaq Dar | See pAge 04 |

CollectorZulfiqarhasvisitedLahoreAirportto monitorthemeasurestakentocurbsmuggling | See pAge 14 |

The Model Customs Collectorate has issued notices to PSO petroleum | See pAge 16 |

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Hazara Customs generates Rs15. 64m during fist 15 days of Dec Tuesday, January 3, 2017

National

ISLAMABAD: Peshawar Customs Station Hazara collected revenue Rs15.64 million under the head of all duty/taxes during first 15 days of December financial year 2016-17.

According to details told by sources of Hazara Customs Station that performance was goods during first 15 day of December FY16-17 adding that, during said period the Hazara Customs collected Rs4.59 million under the head of customs duty as for as it collected Rs0.40 million in the wake of various surcharges. During corresponding period the department collected revenue Rs0.02 million under the head of redemption duty on imports as for as the Hazara collected revenue Rs7.24 million as sales tax.

Dg customs Valuation disposes of revision petition filed by Home plus

SIALKOT

KARACHI

SALeeM AwAn SHeikHu

BuBeen HuSSAin

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he Model Customs Collectorate (MCC) has seized huge quantity of non-duty paid goods worth Rs7 million in 12 raids during the month of November. On the strict directions of Federal Board of Revenue (FBR) the Customs Collector Ahmed Reza Khan is supervising the operation of Anti Smuggling Organization (ASO). Customs sources told Customs Today that during the various raid the ASO teams seized different items included tea, cloth, narcotics, toys, mobile phones. LCD’s carrier vehicles and non-duty paid vehicles. Sources added that mostly items were smuggled from Afghanistan, Iran, Kashmir and China Transit Trade.

The Additional Collector Faiz Ali told that the Performance of ASO is much better to curb smuggling and fruitful results are observing day by day. He said that the FBR has strictly ordered to Pakistan Customs that the department must take keen interest to curb smuggling while the department tighten nose around the smugglers. Faiz Ali said that the smuggling is not in favour of any country rather the nation should help of customs department to eliminate the smuggling.

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irector General Customs Valuation Syed Tanveer Ahmed issues Order-inRevision No.279/2016 under section 25-D of the Customs Act, 1969 against Valuation Ruling No.887/2016 issued on July 27, 2016. The revision petition was Siled

by M/s Home Plus (Private) Limited and others. The petitioner stated that the valuation ruling 887/2016 dated 27.07.2016, superseding valuation ruling 479/2012, ostensibly under Section 25A of the Customs Act, 1969, is illegal and violates section 25A and superior courts judgments pronounced in a number of cases. The ofSicer concerned may issue a valuation ruling but he is required to determine the customs value and not to Six the value. The determination is a multi-step exercise at each stage of which there has to be a proper application of mind by the ofSicer. It is, therefore, necessary that the ruling should contain sufSicient details to show that section 25A has been properly applied.

And without visible exercise reSlected on record, a valuation ruling cannot be said to have issued legally as provided Sec. 25A and interpreted by higher judiciary. Director General Customs Valuation Syed Tanveer Ahmed said in his order that record of the case has been ex-

Sialkot customs seizes smuggled goods worth rs7m in nov

amined, Sive importers appeared, and contended that the customs value of zipper has been determined on higher side vide Valuation Ruling No.887 issued on 27, 2016. The difference of value of zipper in cut to size and in rolls is too divergent.

In the Valuation Ruling 887 issued on July 27, 2016, the value addition for zipper in rolls to cut to size is not rational. In case of metallic / brass the value of cut to size is

$6.30/kg and that of in rolls (a $5.80/kg, hence value addition to make cut to size zipper from roll is $0.50/kg. On the other hand, in case of nylon / polyester/plastic the value for cut to size is determined at $4.34/kg whereas as for the rolls, it is $2.15/kg, showing that addition is $2.19/kg which is not understandable. He further stated that plain reading of the customs values determined vide impugned ruling

valuation reSlects that in case of brass aluminum zipper the consumer cost from roll to cut to size is only above 8 percent only whereas for nylon/polyester zipper it is workout at the rate of 102 percent.

Moreover the custom value of Nylon/Polyester in rolls is used 2.15/kg and aluminum zipper at as 3.35/kg, meaning these by the aluminum zipper is costlier than nylon/polyester zipper.

Anf seizes drugs worth rs 1.1 billion in 18 operations A

ISLAMABAD

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nti-Narcotics Force (ANF) seized nearly one tonne of drugs, worth Rs 1.1 billion in international market, during 18 separate operations at Islamabad, Lahore, Peshawar, Karachi, Quetta, Rawalpindi, Gilgit, Hyderabad, Nowshero Feroze, Qilla Abdullah and Panjgoor. The operations also resulted in arrest of 22 persons including a

lady involved in drug smuggling. The recovered drugs comprised 5.56 kilograms heroin, 756 kilograms opium and 107 kilograms hashish.

The forces also impounded three vehicles during these operations. Carrying out an intelligence-based operation, the ANF Quetta intercepted an oil tanker at the Panjgoor Highway in Panjgoor and recovered 720 kilograms opium and 80 kilograms hashish concealed inside the improvised cavities of the vehicle. However, the persons on board managed

to Slee from the scene taking advantage of the darkness. In another operation, the ANF Quetta seized 36kg opium and eight kilograms hashish at Qilla Abdullah. As per initial report, the drugs were placed on an unattended motorcycle for handing over to some other narcotics gang.

In addition, ANF recovered Sive kilograms hashish from the possession of the two local peddlers, as they were riding on a motorcycle near FC Hospital in Quetta. ANF Rawalpindi recovered 100 gram heroin from

possession of a drug peddler, a resident of Bannu, who was arrested near from the Satellite Town. In another operation, ANF apprehended a local drug supplier, a resident of Astore, along with 900 gram hashish.

He was arrested near a Jutial bus stand in Gilgit. In Islamabad, ANF recovered 90 gram hashish from a lady who was arrested from COD Chowk.

The ANF personnel arrested a drug peddler and recovered 600 gram hashish from his possession in Gilgit.

ANF arrested a Nigerian national at

the Allama Iqbal International Airport in Lahore while he was to Sly for Nigeria by Slight NL-766 and recovered 700 grams heroin concealed in his trolley bag. In another operation, ANF intercepted a UK destined parcel at an ofSice of a courier service company situated in Johar Town in Lahore and seized 810 gram heroin concealed inside the wooden crafts. The forces also arrested a passenger at the Peshawar Airport and recovered 1.36kg heroin from heroin-Silled capsules.

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Customs Export recovers evaded tax from two companies KARACHI: The Customs Collectorate Export has recovered Rs 645,000 from two companies which were found involved in tax evasion and mis-declaration.

Sources told Customs Today that Customs Export issued show cause notices to M/s Al Hudaibiya Bengal Export Company and M/s Ghaffar Associates. Sources said that during scrutiny of the import data of both the companies, it was revealed that both the companies imported raw material by using wrong PCT heading and availed undue benefits and concessions through SRO 567. After detecting tax evasion, the authorities issued them show cause notices to both the companies to deposit evaded amount of taxes and duties within 14 days.

gwadar customs seizes 22,000 litre iranian oil worth rs1.3 million

Tuesday January 3, 2017

National

ASo seizes huge quantity of smuggled goods, truck worth rs 1.65 million

KARACHI

wAQAr AHMeD AnSAri www.customsbulletin.com

wadar Customs Collectorate has seized 22,000 litre Iranian diesel during a successful raid in the area of Omara while two persons were arrested. Customs sources told Customs Today that Collector Saead Akram received information regarding the smuggling of oil. On this he constituted an anti-smuggling team to curb the oil smuggling. The team formed check posts at main entry and exit point of the city and started the checking of vehicles. During the checking vehicles the team intercepted an oil tanker.

During the searched of the tanker the team recovered 22,000 litre smuggled oil.

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customs to hold auction of smuggled goods, vehicles FAISALABAD

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he Model Customs Collectorate, will hold auction of confiscated items at customs warehouse situated at dry port Faisalabad. Sources told Customs Today that the collectorate will present 76 major lots for in public auction included LCDs, clothes, solar panels, crockery, aluminium, Indian black tea, Samsung LED TV in different model series, CC TV cameras, drill grinder, refrigerator, Axal fan, and other different Lots.

Deputy Collector Rana Falik Shair will supervise the auction process, while Superintendent Muhammad Javeed and UDC Khadim Hussain will hold the auction process which will start at 11am. Customs sources said that 14 vehicles which will be offered for auction, included Toyota double cabin Dala, Toyota Land Cruiser, Toyota Crown car, Toyota Premio Car.

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ISLAMABAD

TAriQ DerYA

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he Customs Anti-Smuggling Organization (ASO) has seized a huge quantity of smuggled goods along with offending vehicle worth Rs 1.65 million from Balkasar Interchange Motorway. According to details Deputy Collector Shahid Jan, shared information that a huge consignment of smuggled goods will be transported from Khyber Pakhtunkhwa will cross Balkasar Interchange late night. The deputy collector said that after getting the information, the ASO staff formed a squad and made a picket at Balkasar Motorway Interchange which intercepted a Mazda truck coming from Peshawar.

The deputy collector said that the ASO squad asked the driver to show the relevant documents that the goods loaded on the Mazda truck were not smuggled but the possessors failed to provide any evidence.

The deputy collector said that the smuggled goods consisted of foreign origin cosmetics, warm fabric and tropical fabric. The ASO also seized the Mazda EA-2887 under Customs Act of 1969 clause 57 and sent the both to State Warehouse for further investigations. Shahid Jan said that the ASO squad, who took part in the action, included Superintendent Zargam Dil and Deputy Superintend Rana Shakeel along with other inspectors and joiner staff. The ASO

staff Siled an FIR against smugglers and forwarded the case to Prosecution and Investigation Department.

Meanwhile, The Customs AntiSmuggling Organization (ASO) seized a huge quantity of foreign origin Sine quality fabric along with offending vehicle amounting to Rs 2.1 million on Friday. Deputy Collector Shahid Jan told Customs Today that customs authorities received information about some smuggling attempts. He formed different teams

The ASo also seized the Mazda eA-2887 under customs Act of 1969 clause 57 and sent the both to State warehouse for further investigations. Shahid Jan said that the ASo squad, who took part in the action, included Superintendent Zargam Dil and Deputy Superintend rana Shakeel along with other inspectors and joiner staff

karot power to import duty free machinery

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KARACHI

AfTAB cHAnnA

www.customsbulletin.com he Federal Board of Revenue (FBR) has allowed M/s Karot Power Company to import duty/taxes free machinery and equipment for establishing 720 MW Karot Hydropower Project by issuing CGO 5/2015, it is learnt. In this regard, the FBR has forwarded a letter to the collectors of the Model Customs Collectorate of Appraisement East and West, informing them

about the permission for the import of machinery and equipment.

“I am directed to enclose a copy of the Ministry of Water and Power in respect of M/s Karot Power Company (Private) Limited for necessary action under the law. The admissibility of the concession and fulSillment of other requirements shall be determined and ensure by the collectorate as per rules, policy and procedure,” the letter available with Customs Today said. “The collectorate is also requested to strictly ensure/verify that the equipment, ma-

chinery and other capital goods imported by them are new and purely for the purpose of construction of the power plant and take further necessary action as per rules, policy and procedures,” it added. According to sources, M/s Karot Power Company has requested the Ministry of Water and Power for issuance of a certiSicate for availing the concessions/exemptions on import of machinery, equipment and other capital goods during the construction phase of its 720 MW Hydropower Project.

and enhanced checking on roads.

The ASO team established check posts on GT Road. An ASO squad intercepted a truck bearing registration number GIE-85 which was coming from Peshawar and was full of smuggled goods. The ASO squad asked the possessors about goods clearing documents but they failed to provide any relevant document to the ASO Islamabad. The ASO staff found 2,300 kilograms smuggled fabric worth Rs 1.1 million.

40kg narcotics seized in Bolan ecurity forces foiled a bid to smuggle of narcotics and recovered 40kg narcotics from a vehicle on National Highway near Binjra bridge area of Bolan district. Levies sources said on Saturday that seeing the security forces personnel, drug smugglers managed to escape from the scene after parking their car along with 40 kg chars.

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NA body wants search for new export markets ISLAMABAD: A parliamentary committee on Friday expressed concern over declining exports in the last couple of years and directed the Ministry of Commerce to explore international markets for exporting goods through its representatives posted in Pakistani missions abroad. The Standing Committee on Commerce, which met under the chairmanship of Siraj Muhammad Khan, discussed the reasons for dropping exports and their solution. Pakistan’s exports are continuously decreasing since the government took charge, and these came down to $20.8 billion during the previous financial year, 2015-16 from $25 billion in the year, 2013-14.

Tuesday January 3, 2017

Business

British High commissioner calls on Dar ISLAMABAD

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ritish High Commissioner Thomas Drew called on the Finance Minister Senator Mohammad Ishaq Dar. The High Commissioner briefed the Finance Minister about the recent visit of the British Foreign Secretary ® Boris Johnson to Pakistan.

He informed the Minister that the British Foreign Secretary had a very successful and productive visit and carried positive sentiments for Pakistan’s economic growth and development, said a press release here Saturday. The High Commissioner also apprised the Minister of the

Lpg rate up by rs10 per kg LAHORE

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he marketing companies have increased the price of liquefied petroleum gas (LPG) by Rs10 per kg; Rs100 for domestic cylinder and Rs400 for commercial cylinder. “The new prices will be effective from today, “said LPG Distribution Association Pakistan Chairman Irfan Khokhar He said that rise in the rates was due to increase in LPG rates in international markets. “The price in the international market increased by $67 per ton and now it stands at $467 per ton from $400 per metric ton,” he informed.

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Foreign Secretary’s meeting with CEOs of British companies operating in Pakistan, in which the companies expressed interest to bring more investments to Pakistan.

The Finance Minister expressed

appreciation for the Foreign Secretary’s visit to Pakistan and for his encouraging words regarding Pakistan’s economic progress and future potential of Pakistan-UK trade ties. He assured the government’s

full support to facilitate investments by British companies in Pakistan and new companies would be welcome. He said that there was interest from across the world to expand business and trade relations with Pakistan. Senator Dar said that Renault from France has recently announced that they would start manufacturing automobiles in Pakistan. The British High Commissioner said that British companies are successfully operating in Pakistan and that they provide a positive stimulus for fresh British investment in Pakistan.

He also said that UK has a strong relationship with Pakistan across a broad spectrum of areas and the scale of engagement can be further enhanced with furthering British trade and investment to Pakistan.

wapda contributes 33,658m hydel units to national grid in 2016 T

LAHORE

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he hydel power stations, owned and operated by Wapda, delivered 33,658 million units of lowcost environment friendly hydel electricity to the national grid in 2016, as compared to 31,840 million units generated during the year 2015, said authority’s spokesperson on Saturday.

In a statement, the Wapda stated that this generation registered an increase of 1818 million units (5.7 %) when the country was in dire need of elec-

tricity. This additional contribution of hydel electricity to the national grid not only helped minimise loadshedding in the country but also lower power tariff. The main contributing factors behind this hydel generation include water releases from the reservoirs on the indent of IRSA and effective operation and consistent maintenance of the hydel power stations

by Wapda. Hydropower is the cheapest, cleanest and environmentfriendly source of electricity, which plays a signiSicant role to stabilise electricity tariff in the country. According to the data of Pakistan Electric

Power Company (PEPCO) regarding per unit cost of electricity generated from various sources during Siscal year 2015-16, it is Rs2.15 for hydel, which is far less than per unit cost of electricity generated from all other sources. In comparison to hydel electricity, it is Rs9.07 per unit for gas, Rs11.05 for residual furnace oil (RFO), Rs17.96 for high speed diesel (HSD), Rs12.08 for coal, Rs6.86 for nuclear, Rs16.63 for wind, Rs11.95 for bagasse, Rs16.95 for solar, Rs11.27 for regasiSied liqueSied natural gas (RLNG), and Rs10.55 per unit for electricity imported from Iran.

Ahsan says eight industrial zones under cpec BEIJING

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ederal Minister for Planning, Development and Reform Ahsan Iqbal has said that China-Pakistan Economic Corridor (CPEC) will not be limited to development projects, but will also help to boost people-to-people contacts between the two countries. Talking to media after the concluding meeting of the Pak-China Joint Cooperation Committee of China-Pakistan Economic Corridor in Beijing on Friday, Ahsan said, “The meeting expressed satisfaction that by the cooperation of the leadership of both the countries CPEC is moving ahead successfully.” He said, “The meeting expressed satisfaction over the ongoing work on the 8000MW power projects under the CPEC.” The minister said, “A working group has been constituted to continue the work on Bhasha Dam to be built on Indus River.” He said, “The transport infrastructure group expressed satisfaction on two big projects including Multan-Sukkur project and Karakorum Project from Havelian to Thakot where work is underway.”

Ahsan Iqbal said, “Under the transport infrastructure, rail based mass transit projects were approved for all provincial capitals and included in the CPEC framework.”

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Secp to encourage listing of firms’ securities ISLAMABAD

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he Securities and Exchange Commission of Pakistan (SECP) will encourage listing of a company’s securities on an exchange through initial public offering (IPO), which means the Sirst allocation of newly issued shares and debt to the public.

It is so as companies with good

track record, credible sponsors, experienced management and operating in a strong industry can easily tap the capital markets for generating the resources required for growth. Generally, such companies are welcomed by capital markets and maintain investor’s conSidence.

For the last couple of years, SECP has assumed a more vigilant role and has also forced PSX to play its due role in promoting quality listings. To promote ease of doing busi-

ness, the SECP has also expedited its approval processing time and as a matter of fact, the SECP approved the last three IPO applications within Sive working days after receipt of complete applications. Being the frontline regulator, PSX has the prime responsibility to promote quality listing considering the interest of all the stakeholders including general public and the issuers. In order to strengthen its approval process, the PSX has re-

cently constituted a listing committee comprising of independent market participants, professionals with business background and members of its management. After its constitution, the said PSX committee has approved Sirst prospectus for listing of a company, which is one of those companies which participated in the interactive session organised jointly by PSX and the SECP. It is imperative to encourage new quality listings to complement a sus-

tainable growth being registered by our capital markets and to maintain investors’ conSidence. Public offering process starts with the decision of the sponsors of the company to offer securities to the general public.

In this connection, Pakistan Stock Exchange (PSX) and the Securities and Exchange Commission of Pakistan (SECP) jointly held various interactive sessions in different cities with the selected group of sponsors having high potential for listing.

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Tuesday, January 3, 2017

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ISLAMABAD

M fAiZAn

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irectorate General Customs Intelligence and Investigation, Federal Board of Revenue, in Sirst six months of Sinancial year 2016-17, country wide various operations against illegal trade and smuggling has seized and impounded miscellaneous goods including electronics items, cigarettes, foreign-origin cloths, non duty paid cars from Afghanistan and offending vehicles, gutka, auto spare parts, arms and ammunition, Iranian diesel and petrol, pan-parag zafrani pati, toiletries, toys, food grains, dinners and crockery sets, blankets, black tea, timber, grease and mobil oil amounting to Rs. 2.05 billion.

Customs I&I, in separate anti smuggling operations against narcotics, has recovered 418 kilogram weed, 10 kilogram opium, 100 kilogram Sine quality heroin and 2400 kilogram poppy straws, worth billions of rupees in international markets.

Customs I&I has lodged 656 FIRs and arrested 33 persons.

Chairman FBR, Nisar Muhammad Khan, appreciated the perform-

ance of the Customs Intelligence and hoped that they will continue to work with same zeal and sprit in future. Director General Shaukat Ali expressed the hope that after induction of new staff the performance of the directorates may be doubled till the end of current Sinancial year. The seized miscellaneous goods includes Iranian smuggled diesel worth Rs. 95.82 million, 85,280 liters petrol worth Rs. 3.7 million, electronics items worth Rs. 71.62 million, 73,996 bars of foreign-originated cigarettes worth Rs. 21.61 million, 1,27,056 kilogram black tea worth Rs. 54.98 million, gutka worth Rs.12.06 million, tyers and tubes worth Rs.12.73million, blankets worth Rs. 1.4 million, toys worth Rs.3.5 million and arms and ammunition worth Rs.5.2 million during the above-mentioned period. Meanwhile, Directorate General Customs Intelligence and Investigation, in a countrywide action, has impounded 460 non-duty paid and offending vehicles worth Rs.963.6 million during the Sirst six months of the current Sinancial year (till December 2016 30). Sources told

Customs Today that Federal Board of Revenue Chairman Nisar Muhammad Khan and Director General Customs Intelligence and Investigations Shaukat Ali appreciated the efforts made by anti-smuggling staff and car cell in this regard.

and 6 firs 5 6 d odge fBr, i has l rman i & a i h s c d m s. custo eciate r erson p p p 3 a 3 ed han, oms arrest mad k m a e cust h h u t f M ill o nisar ance they w m t r a o h f t r nd ped the pe zeal a nd ho a e e m c a n s ige with intell work o t re e u n futu contin sprit i

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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

Dar’s narratives on state of economy

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inance Minister Ishaq Dar is very optimistic about the growing state of economy, saying all economic indicators are moving in the right direction and the situation will further improve in the coming months. The stereotype statement is not different from the other ministers and officials who are part of this government. The nation also expects strong economy and real growth in trade, business and industrial sectors. The economy of the country shows both positive and negative indicators, but one thing is clear the government is still hesitant to adopt proactive approach to deal with the emerging situation.

According to Dar, the country is ready to make a strong comeback and its economy is now stronger than it was in 2013. But the steps he had initiated to increase tax revenues have miserably backfired. The imposition of withholding tax on banking transactions is still haunting the business community as well as the banking sector while the reforms in the real estate sector had to be withdrawn after five months of hassle. The introduction of an amnesty scheme for the real estate sector shows the policymakers are in the habit of taking decisions in haste only to withdraw the same in a few months. There is no doubt in the good performance of the Pakistan Stock Exchange in recent months and an apparent macroeconomic stability in the country.

Whatsoever the government has attained and achieved in the third years of its tenure is appreciable, but economic potentials of the country have still not been fully utilized. The exports are falling and foreign exchange reserves are maintained on the crutches of loans. If this is the cause of macroeconomic stability, there will be a trouble for the coming government as debt servicing will eat up most of the funds meant for development programmes. The leadership of the Pakistan Muslim League-Nawaz never tired of claiming that it will end load shedding within specified time. But it tended to extend the deadlines and there is no improvement in the energy sector despite the government has consumed a major part of its tenure. The writ of the government is weak and it could not stop politicization of the major dam projects. The country is not only facing terrorism, mismanagement and corruption, but also it has to fight the conspiracies hatched by the eternal enemy of the country, India.

wise step for water security P

LAHORE

Dr AfTAB AfZAL

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akistan and China have decided to make water security as part of the ambitious China-Pakistan Economic Corridor project to ward off the growing Indian threats, which it is hurling to rescind the Indus Waters Treaty signed in 1960. A decision to concentrate on water security was taken during the sixth meeting of the Joint Cooperation Committee between the two countries to fully exploit the hydel potentials of the country.

The committee also decided to make the mass transit projects of all the four provinces as part of the corridor project and their

modalities will completed in one year. The CPEC is the last hope for the nation to achieve progress and prosperity, but rumours are spread from various quarters on the behest of India to sabotage the project. Earlier, concerns were expressed on the rumours that energy projects worth $7 billion will be cancelled. However, Ahsan Iqbal, the minister for planning and development, expressed his satisfaction on the pace of work as both Pakistan and China are executing the projects with a sense of mission and responsibility. The news reports suggested that the sponsors were considering axing five energy projects, which were to be completed by December 2018. If the projects were terminated, Sindh

would be deprived of half of its share in the mega project and Balochistan’s share would also fall to $7 billion. However, Pakistan is ready to take all possible steps to use Indus water which is a source of more than 17 gigawatts of hydropower capacity.

Pakistan is fully dependent on the Indus river due to the fact that it irrigates over 90 percent of the agricultural land in the country. There is a need to beware of threats emanating from India and its stooges in Afghanistan as the two are opposed to any development in Pakistan, including the Chinese investment in the country. The Indian government is flooding dollars into Pakistan to politicize the project and unfortunately

some nationalist political parties are allegedly supporting Indian stance and are causing damage to the country’s economy. Earlier, the United States had openly opposed the construction of the Pak-Iran gas pipeline at a time when the country was facing severe electricity shortage. In one of its report, the Asian Development Bank also highlighted this issue and this is a point to ponder for those elements who live in Pakistan but work for the enemy.

Despite all odds, Pakistan’s economy is growing at a fast rate but electricity shortage is the main hurdle in the expansion of industry. It is hoped that the government will take bold decisions to offset all the pressures on the corridor project.

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GIC to buy 50% of Watermark mall in UK LONDON: Sovereign wealth fund GIC is increasing its stakes in retail property on England’s South Coast. It is buying a 50 per cent stake in the Watermark, a newly opened shopping mall in Southampton, for £48.5 million (S$86.2 million), it announced yesterday. It bought the stake from European property developer Hammerson. The two companies previously worked on a joint venture for the Westquay shopping centre, which is adjacent to the Watermark.

GIC bought a 50 per cent stake in Westquay in 2007 for £299 million. The tenure of the Westquay joint venture has been extended, added GIC yesterday, and Hammerson will receive a fee for the ongoing asset management of the two malls. The Watermark opened early this month and is 95 per cent leased. It will provide a stable annual income of £5.5 million when fully leased, said GIC.

Lcci demands to build kalabagh Dam at any coast LAHORE

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alabagh Dam is the only solution to the three major problems of the country namely shortage of electricity, shortage of water and devastation caused by floods therefore it should be built at any cost. Consensus on this issue was developed at a seminar on Securing Pakistan’s Future through Kalabagh Dam” here at the Lahore Chamber of Commerce and Industry (ICCI) on Friday. The LCCI President Abdul Basit, Vice President Muhammad Nasir Hameed Khan, former Chairmen WAPDA Tariq Hameed and Zafar Mahmood, renowned analyst and journalist Najam Sethi, Sohail Lashari, Mian Zahid Javed, Shahid Nazir, Muham-

K

mad Nawaz, Rehmatullah Javed, Jamil A. Naz, Abdul Hayee Baloch and Salman Najeeb were the key speakers of the seminar. The speakers were of the view that economic growth lies in the generation of hydro power generation which is a cheap source of electricity. The government would have to create consensus for the early construction of water reservoirs.

They said that power generation through thermal means would not be doing any service to the trade, industry and economy even if we start producing 50,000 MW electricity through furnace oil as it would not be affordable for the businessmen and they would left with no other option but to close down their industrial units. They said that Kalabagh dam is the most suitable project the national economy as it would not only produce cheap and sufficient electricity but would also avert the human tragedies. They said that Kalabagh dam is a must to control the poverty & hunger and those who were opposing the KBD were enemies of this country as they were playing with the country‘s future.

Tuesday January 3, 2017

Chambers

improving quality of products to promote trade with Japan: JicA I

ISLAMABAD

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slamabad Chamber of Commerce and Industry (ICCI) in collaboration with Japan International Cooperation Agency (JICA) organized a seminar on “Business Guide for Trade with Japan” to create awareness in business community about how to promote trade and exports with Japan. Large number of members was present in the seminar.

Masao Otsuka, JICA Expert and advisor to Trade Development Authority of Pakistan gave a detailed presentation at the occasion.

He said Japan was a strong market of 125 million people with GDP of $ 4.66 trillion and Pakistan has good opportunity to tap this attractive market for trade and exports.

He said 97 percent of business entities in Japan were from SME sector and both countries have good potential to enhance cooperation between their SMEs for mutual beneSit. He highlighted Sive important points to promote trade with Japan.

He stressed that businessmen should Sirst establish Japanese contacts in local network and then in

Japan. He said tailoring products to meet the Japanese requirements and speciSications was vital to penetrate Japanese market. He said Sirst meeting with Japanese buyers was a step to building a relationship and Japanese Sirms were not likely to make quick decisions. He said building trust was crucial for promoting long term business relationship with Japanese Sirms and Pakistan entrepreneurs should keep these facts in mind for doing business with Japan. He said products must be delivered as promised, on time

and in accordance with speciSications and added that late delivery, improper packing, missed speciSications and delayed response would hurt business relations with Japan.

He said that he has been assigned to promote Pakistan’s exports with Japan and assured that he would cooperate with business community in realizing these goals.

Speaking at the occasion, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that Pakistan and Japan has great potential to enhance coopera-

Businessmen group not to participate or support any group in fpcci polls: Siraj Teli

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KARACHI

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hairman Businessmen Group (BMG) & Former President of the Karachi Chamber of Commerce & Industry (KCCI) Siraj Kassam Teli has categorically stated that BMG will not support any group or participate in the forthcoming election of the Federation of Pakistan Chamber of Commerce & Industry (FPCCI). “FPCCI continues to follow the same old policy of ‘hails to the presence’ and remains subjugated by fake/ bogus and paper-based trade associations/ chambers, resulting in making the true representatives of Business and Industrial community voiceless, which is the basic reason why BMG and KCCI

prefers staying away from FPCCI election”, he added in a statement issued on Thursday. While referring to numerous contesting groups of FPCCI election who approached BMG to seek support, Siraj Teli said that all these Groups, who were looking for BMG’s support, are informed that BMG will not support anyone as FPCCI has not been able to effectively expel fake and bogus associations. “FPCCI is still marred with corruption and continues to represent dozens of bogus and fake chambers and trade bodies”, he added. Highlighting KCCI’s stance against registration of fake/ bogus trade associations in FPCCI, Siraj Teli said that because of these bogus trade bodies, FPCCI has lost its credibility as it remains busy in just Slattering and pleasing the decision makers. He

said that BMG and KCCI also have serious objections over FPCCI’s way of working as instead of highlighting core national issues and giving recommendations/ dealing on numerous policies at federal level, FPCCI is engaged in carrying out activities/ meetings which do not fall under its domain. “Such activities/ meetings are encroachments on the activities which are in the domain Chambers/ trade associations/ All Pakistan Trade Associations etc. as FPCCI does not have any businessmen or industrialists as its members therefore they, as an institution, should take inputs about policy issues pertaining to budget, trade and economy from its member Chambers/ Trade Associations and forward them to the policymakers at the federal level”, he added.

tion in multiple Sields, but the bilateral trade of around $2 billion was not reSlective of true potential of both countries. He stressed that Pakistan and Japan should encourage frequent exchange of trade delegations and holding single country exhibitions on reciprocal basis to explore all untapped areas of mutual cooperation. He hoped that the seminar would create better awareness in business community for promoting trade with Japan and thanked JICA Expert for organizing this important event.

kyrgyzstan, iran expand cooperation yrgyzstan attaches special importance to the development of economic relations with Iran, Kyrgyz Economy Minister Arzybek Kojoshev said at the Kyrgyz-Iranian business forum held in Bishkek last week as part of Iranian President Hassan Rouhani’s visit to Kyrgyzstan. Kyrgyzstan is interested in cooperation with Iran, the fourth largest economy in the Islamic world and the second largest in Western Asia. The trade turnover between Kyrgyzstan and Iran was $12.3 million in the first ten months of 2016 and increased by 82.7% compared to the same period of 2015. Exports amounted to $7.3 million and increased 2.4-fold and imports totaled $5 million (up 36%). The Manas International Airport in Bishkek could become a hub for Iranian airlines to China and the Asia-Pacific region.—CB Report

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FBR, SBP to discuss proposal of WHT exemption Tuesday January 3, 2017

National Dg Valuation issues reference values of sorbitol powder KARACHI

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irectorate General of Customs Valuation has issued the reference values for sorbitol powder/solution.

This Directorate General has initiated an exercise to develop database values for different items wherein it has been observed that declarations are of wide range and do not correctly reflect values of the items as traded in the international market. During the scrutiny of previous clearance data, it has been observed that sorbitol powder/solution 70% falling under PCT headings 3824.6000 are being assessed at different values and certain transactions are on very low side. According to details, Directorate General Valuation, after carefully examining the clearance data, also conducted market inquiries to verify the authenticity of declarations. Online prices were also obtained to corroborate the findings of the market surveys. The Directorate General, therefore, has found that the customs values of sorbitol powder/solution 70% are sorbitol powder 70% food grade China.

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customs court adjourns hearing of 11 cases he Special Court of Customs Taxation and Anti-Smuggling heard 11 important cases on Friday and adjourned the cases until the next hearing.

On Friday, 11 cases of different types were scheduled for hearing, including indictment against the accused in mobile smuggling case. The cases, including tax evasion, customs, smuggling and narcotics, were scheduled for the day. A case of Faheem in mobile smuggling was also scheduled for the hearing in which the court recorded statements of the parties and adjourned it for next week. The court also proceeded on statements and witnesses on four different cases on the day.

The cases of Lahore, Gujranwala, Sialkot and Jhelum were scheduled for the day.—M Imran Mehar

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KARACHI: The Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) will discuss a proposal of withholding tax (WHT) exemption on cash withdrawals made by branchless banking (BB) agents. The issue would be discussed at the 3rd meeting of National Financial Inclusion Strategy (NFIS) Steering Committee.

As per proposal, the banks engaged in branchless banking will convey the detail of accounts of their agents to banks where agents are maintaining their accounts (agents’ banks). It is proposed that the BB providers will calculate aggregate disbursements made by each agent on a particular day.

Dc Asma issues notice to owner of non duty paid stationery items T

FAISALABAD

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he Customs Adjudication Deputy Collector Asma Hameed has issued a show cause notice to owner of non duty paid foreign origin stationery items. These items were brought into country through unauthorized route. Sources told Customs Today that Mianwali Anti Smuggling Organization intercepted a vehicle near M.M Alam Raod Mianwali and recovers smuggled items. The team asked the owner/driver of the vehicle who was identified as Muhammad Shakeel to show documents regarding legal import of the stationery items. But he could not produce any legal documents regarding possession of the above

said items. Therefore, the officials impounded the goods under cus-

toms laws and forwarded the case to Customs Adjudication for fur-

ther legal action.

Now, deputy Collector Asma issued notice to the accused person on the violation of Section 10-A. 89(1) and 156(1) of the Customs Act, 1969 punishable under Section 156(1)89 of the Custom Act, 1969 and served him a show cause notice as to why the seized item should not be confiscated under aforementioned provisions of the law besides penal action as warranted in law.

However, the adjudication has directed the accused to file reply on next date of hearing. The seizing agency has also been directed to file reply in the respective case.

The adjudication authority also directed Deputy Collector Muhammad Rizwan to attend the hearing on schedule date along with relevant record.

central region posts 3pc growth in ST collection C

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ustoms Central Region has collected Rs 8,500 million as sales tax during November of the current Sinancial year, posting a growth of 3 percent as compared to the same period of the last Sinancial year.

As per details, the Customs Appraisement Lahore collected Rs 3,339 million, during the period under review. The Customs Preventive collected Rs 1,192 million total sales tax and Collectorate of Multan collected Rs 2,979 million as sales tax during the period under review. The collectorate of Customs Faisalabad collected Rs 1,061 sales tax as compared to Rs 8,254 million during the last Sinancial year. Overall, the Central Region collected total sales tax from all the four collectrates amounting to Rs 8,500 million November of the Sinancial year 20161-17. The Central Region had been assigned a target of Rs 8,254 million sales tax collection. It is

necessary to mention here that FBR strictly directed to all customs collectorates of the country to use all available resources to recover

outstanding dues from tax defaulters. FBR also directed that stern action will be taken against those tax evaders who will not Sile

their tax returns which will led to seizure of their immovable and movable properties and attachment of bank accounts.

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FIA arrests notorious human trafficker from Bahawalpur FAISALABAD: The Federal Investigation Agency (FIA) has arrested a human trafficker namely Sajid Iqbal son of Muhammad Habib who is a resident of Bahawalpur.

Sources told Customs Today that Deputy Director Syed Imam Zaidi conducted a raid along with Sub Inspector Muhammad Abid Gill and arrested accused Sajid Iqbal. Sources said that accused was running illegal business of sending innocent people abroad after extorting huge amounts from them. The accused had extorted Rs 8,70,000 from three persons for sending him for overseas employment in Dubai but he failed to send them abroad.

Sources said that FIA has also recovered passports and several fake visas of different countries from his possession.

customs Adjudication issues ono against owner of non-duty paid vehicle

Tuesday January 3, 2017

National

gwadar port handles 184 ships since March 2008: Hasil Bazenjo T

collector raja Tahir issues notices to owner of non duty paid Land cruiser FAISALABAD

FAISALABAD

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ustom Adjudication Deputy Collector Asma Hameed has issued ONO in favor of Customs Intelligence. According to details, customs staff intercepted a vehicle Toyota Corolla bearing registration no. A- 5818 near Chashma Barrage. The Toyota Corolla was transmitted form Peshawar to Faisalabad. The driver of the vehicle who was was identified as Ghazanfar Ali Khan son of Hameed Ullah Khan failed to produce any relevant documents about possession of the vehicle. After his failure customs authorities impounded the vehicle

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and referred the case to Customs Adjduciation authorities. Ghazanfar Ali Khan was served with a show cause notice in which he was asked to explain the reason that why his vehicle should not be confiscated for violation of section 2(S) read with SRO – 566 (1) , section 16&18 of the Customs Act , 1969, section 3 of sales Tax Act and as to why penal action be not taken against him under the law .

On the other hand, Main Muhammad Umer Bhatti Intelligence Officer (IO) was appeared from the petitioner side but no one was appeared from the respondent side. The case decided on the basis of the facts and material available. Meanwhile, Deputy Collector Asma Hameed Adjudication Faisalabad views all the stated facts/documents of the case. After it is proved that the seized Toyora corolla Motor car are smuggled. The respondents have nothing to defend against the allegation framed in the show cause notice. Therefore order for outright confiscation of the seized Motor car bearing registration No. A- 5818 used for transportation issued ONO in favour of Customs Intelligence.

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he Gwadar Port has handled almost 184 ships of import and export of goods since 2008. Ships loaded with wheat, urea and food goods have been discharged at Gwadar Port.

According to Minister for Ports and Shipping Mir Hasil Khan Bazenjo, a total volume of 26 ships loaded with wheat cargo weighing 0.963 million tons and 150 ships loaded with 5.366 million tons of urea cargo have been discharged and transported up country from Gwadar Port since March, 2008.

Presently, eight ships loaded with local sea food weighing 708 metric tons has been exported through the port. In an interactive session with Customs Today, the minister said that the operations of Gwadar Port were handed over to M/s China Overseas Port Holding Company (COPHC) since 2013. The port is supplemented with 2,281 acres of land for Gwadar Port Free Zone which has various tax exemptions/ incentives. After ECC decision in 2008, (to

import wheat, urea and coal from Gwadar Port) more than 6.33 million tons of urea and wheat has been imported from Gwadar Port. He said that the Ministry of Ports and Shipping would ensure provision of all required facilities at the Gwadar Port for the industrialists across Pakistan as well as full-Sledged activation of Gwadar Port for smooth trans-shipment of foreign goods through the port. He also stressed the need for

efSicient port operations in Pakistan as it took Sive to ten days or even more to get a container cleared from ports in Karachi due to manual examination and obsolete scanners.

Therefore, such container is released within a half hour at many efSicient ports around the world because of their focus on automation and availability of smart scanners. Pakistani will always lag behind in development if our por.

he Customs Adjudication Collector Raja Tahir Majeed issued a show cause notices to owner of non duty paid Toyota Land Cruiser. Sources told Customs Today that Mianwali Anti Smuggling Organization intercepted a Toyota Land Cruiser bearing registration no. BF-4209. The ASO team asked the owner Ziaur Rehman son of Zafran Hussain to provide legal documents regarding possession of the vehicle but he remained failed to show any relevant legal documents. ASO team impounded the vehicle and forwarded the case to Customs Adjudication. Collector Raja Tahir Majeed issued notice Ziaur Rehman. The adjudication has directed the owner to file his reply within the given time, which is also last date of hearing. The notices issued on the violation of Section 16, 18 of the Customs Act, 1969 and called upon to show cause as to why the seized item should not be confiscated under provisions of law. The adjudication authority also directed the owner to provide evidence otherwise the case will be decided on the basis of evidence available on demand.

collector directs staff to put names, contacts on note-sheets

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KARACHI

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hief Collector, Appraisement South, Abdul Rashid Sheikh, has told the ofSicials of the Customs Collectorate Appraisement West and Port Muhammad Bin Qasim to put their names, designations and ofSicial contact numbers on note-sheets, it is learnt.

In this regard, the ofSice of the Chief Collector Appraisement South has forwarded a letter to Collector, Port Muhammad Bin Qasim and Collector, MCC of Appraisement West, Customs House Karachi, asking them to ensure proper imple-

mentation on the orders.

“It has been noticed that the signatures on note-sheet side of the file do not bear identity of the officials. In many cases, a letter/notice issued to traders/persons do not bear the name and/or designation of the signing official,” according to letter available with Customs Today.

“It is hereby directed that ofSicials below the rank of collector shall put their name below the signature on the note-sheet side. In case of letters/notices, the signing ofSicials shall put name, designation and ofSicial contact number below the signature”, it added.

“The ofSicers below the rank of

deputy collector/assistant collectors shall also separately mention the name, designation and contact number of the concerned deputy collector/assistant collector in the last paragraph of the notice”, the letter further stated.

While warning the ofSicials, the letter clearly stated “noncompliance shall tantamount to indiscipline/maladministration attracting proceedings under the E&D Rules, 1973”. Meanwhile, Chief Collector Appraisement South Abdul Rashid Sheikh has forwarded another letter to clearance collectorates about submission of reports in case of GDs referred for scrutiny.

“On receipt of information of

mis-declaration by the ofSice of the chief collector, the cases are referred to the concerned collectorates for scrutiny. However, it has been observed that in most cases the reports are delayed inordinately which results in failure to handle the cases effectively. In few cases of genuine imports, the importers have suffered losses and hardships”, says the letter available with Customs Today. “It is conveyed that scrutiny must be completed within two days and reports submitted accordingly. In cases where more time is required, the chief collector’s ofSice should be informed indicating the date of submission of report”, letter concluded.

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Canada tax changes in 2017 Tuesday January 3, 2017

World

TORONTO: A number of tax changes would affect federal and provincial governments in 2017 with the Canadian Taxpayers Federation (CTF) claiming that the new rules will mean more money in the pocket of majority of Canadians. Federal government is ending child tax credits for: arts, fitness, education and textbooks in 2017. But the parents of children under the age of 16 can pre-pay 2017 arts and fitness programs, which can be claimed on 2016 tax returns provided total amount spent in 2016 is not more than $250 and $500 limits respectively, media reports said. Income splitting for families is also being cancelled by the Federal Government. Previously this option allowed one of the parents, who had a child under the age of 18, to transfer up to $50,000 of income to the spouse with a lower income.

philippines’ customs finds box of stolen diamonds

MANILA

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he Bureau of Customs (BOC) on Monday said it had found 22 stolen diamonds when it opened a “balikbayan” (gift) box sent from Malaysia. In a press statement,

BOC Commissioner Nicanor Faeldon said the diamonds were contained in a plastic resealable pouch that was neatly hidden in a wallet inside the box sent by one Arturo R. Rivera from Kuala Lumpur. The package was consigned to one Lajane Basilio of Purok 1, Luakan, Bataan. “It is disheartening to conSiscate a balikbayan box believing it contains gifts and other items

for the loved ones of overseas Filipinos. “However, we cannot tolerate Filipinos abroad who use these boxes for smuggling as it violates our laws,” Faeldon said. According to Faeldon, the BOC found the diamonds based on information relayed by National Bureau of Investigation Director Dante Gierran. The BOC statement did not provide other details, like the diamond’s real owner and how the diamonds were stolen. Faeldon and the BOC’s communication ofSicer could not be reached for an interview at press time. Citing Gierran’s information, the BOC chief said the box arrived in the country on Dec 5.

It was transported in a freight container holding 245 other packages onboard the vessel Sima Genesis 0231 from Port Klang’s Westport.

Based on BOC records, the designated agents of the shipment were LBC Express Inc with a warehouse located at Radial Road 10, Vitas, Tondo, Manila; and RV Estrella Customs Brokerage which holds ofSice at Downtown Center Building.

Bp bids $1.29b for iranian flat steel imports slump on Australian fuel rumors of duty cut he recent news about a possi- dustries, Mining and Trade Minister business ble cut in the import duty on Jafar Sarqeyni earlier this month.

P PLC BP, +0.08% has agreed to buy the fuels business of Woolworths Ltd. (WOW.AU) for 1.79 billion Australian dollars (US$1.29 billion), in the latest move by the British oil company to rebuild following the deadly Deepwater Horizon disaster.

The deal adds 527 gas stations and 16 development sites to BP’s retail footprint that already spans around 1,400 sites in Australia. BP also owns the Kwinana oil refinery in Western Australia state, and stakes in the active North West Shelf liquefied natural gas facility and proposed Browse gas-export venture. Woolworths, which has been grappling with falling profit margins in its core supermarket business, said in September that it was considering the sale of its fuels business, and that several companies had made conditional bids.—CB Report

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Slat steel products entering Iran has led to a halt in trading, Metal Bulletin learnt on December 28. The exact date when the regulation will come into force is not yet clear, hence potential customers have adopted a wait-and-see approach. “Tariff rates on Slat steel imports will be cut down by half to 10% in a bid to balance the domestic steel market,” said Deputy In-

“The supply of Slat steel in the domestic market is slightly lower than demand, which can be balanced by imports.” Sarqeyni noted that the import of about 700,000 tons will be sufSicient for the current Iranian year (ending March 20, 2017). Last Siscal year witnessed the import of 5.2 million tons of Slat steel. “Local prices went down because of the [rumored] cut.—CB Report

£500k of drugs found inside HMp Humber LONDON

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he Ministry of Justice conSirmed the drugs had been found inside HMP Humber, near Brough, since October after prison ofSicers carried out searches.

It is understood much of it was the former legal high Spice, which has been described as rife in prisons.

The Prison Service said: “Vigilant staff at HMP Humber have recovered a number of packages containing contraband over the past months following intelligence-led searches. “This includes mandatory drug testing for prisoners with extra time behind bars for those caught using banned substances, tough new laws to deal with people smuggling new psychoactive substances into jails and the increased use of sniffer dogs and cell searches across the estate.

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“These measures alongside 2,500 extra frontline prison staff will help make prisons safer and cut reoffending.” An inspection held in 2015 found drug use was common and described the jail as “not sufSiciently safe”, with a high number of assaults on staff. An action plan submitted by governors at the prison in February said a violence reduction strategy had been established. It said: “Violent incidents are recorded on the daily brieSing sheet and reviewed on a daily basis. All men found to be displaying antisocial behaviour will be placed on a compact which is managed daily and reviewed weekly by wing managers.”

It added a full review of the supply of drugs inside the prison had been conducted and several measures are now in place to tackle the problem.

“Intelligence led searching is now conducted promptly,” it said. “A supply reduction strategy is in place and actions identiSied are being implemented via the monthly supply reduction meeting.

Spotlight nZ posts 14% fall in profit potlight, New Zealand’s largest fabric, craft and home decor retail chain owned by one of Australia’s wealthiest families, posted a decline in proSit for the Sirst time in Sive years in 2016, as it marked two decades in this country. The local unit of the Melbourne-based chain posted a 14% drop in proSit to $5.2 million in the year ended June 26, according to its Sinancial statements posted with the Companies OfSice last month. Revenue increased 3.8% to $103.4 million.

Costs rose across the areas of marketing, personnel and its support group, led by a 36% jump in distribution costs to $4 million and a tripling of

“other” costs to $3.7 million. The company was not immediately available to comment. Spotlight has grown from the humble beginnings of a single dress fabric stall at Melbourne’s Queen Victoria Market in the early 1970s to a chain of more than 100 sew, craft, party and home decorating superstores across Australia, New Zealand, Singapore and Malaysia. The Sirst New Zealand store was opened in Wairau Park, in Auckland, in January 1996, and in a March press release the company noted it had sold 540,000 cushions, 300,000 costumes, 3 million buttons and 30 million metres of fabric in the ensuing 20 years.—CB Report

china’s Huawei sees slower revenue growth for 2016

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BEIJING

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hina’s Huawei Technologies Co Ltd [HWT.UL], one of the world’s largest telecom equipment makers, said on Friday it expects 2016 revenue growth to slow slightly to 32 percent and forecast greater uncertainties next year. The

Shenzhen-based company, which competes with Sweden’s Ericsson (ERICb.ST) for the top spot in the global market for telecoms equipment, sees 2016 revenue hitting 520 billion yuan ($74.8 billion), said Eric Xu, Huawei’s rotating chief executive.

The expected growth rate for this year represents a slowdown from the 35 percent rate posted in 2015 and the company said it would face

greater global political and economic uncertainties in 2017. “The year 2016 has seen a Slock of black swans – both political and economic – sweep across the globe. Nevertheless, we have remained focused on our strategy and have patiently applied ourselves to making breakthroughs and creating real value for our customers,” Xu said. “In 2017, we will face even greater global political and

economic uncertainties.” Xu made the comments in a New Year’s message to employees, a copy of which was seen

by Reuters. The company had in early 2014 targeted overall revenue of $70 billion by 2018. Huawei became the Sirst Chinese handset vendor to ship more than 100 million smartphones in a year in 2015 when a 44 percent jump in its shipments deSied a market slowdown.

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Pakistan gate inaugurated at Pak-Iran border QUETTA: Commander Southern Command Lieutenant General Aamir Riaz has inaugurated Pakistan Gate at Taftan (Pak-Iran border).

“This inauguration marks the completion of the first phase of constructing of the border terminal at Taftan which commenced on July 16,” a statement, issued by Inter Services Public Relations (ISPR) said.

‘The construction comprises two Gates out of which the first gate is constructed right on the zero line while the other is a monumental gate constructed 200 meters inside Pakistan at a dominating ground, which is visible from the distance of two kilometres on both sides of the border’, ISPR said.

Director i&i submits report against M/s ir Trading company

Tuesday January 3, 2017

National

chairman fBr asks traders to cooperate in enhancing tax net

import of old auto parts, contravention cases made against violators LAHORE

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irectorate General of Intelligence and Investigation has submitted a seizure report against M/s IR Trading Company, Lahore, with the collector AdjudicationI for initiating adjudication proceedings against the company, it is learnt. Official sources told Customs Today that Director I&I-FBR Samina Taslim Zehra has forwarded a seizure report to the Adjudication Collectorate against evasion of duty and taxes to the tune of Rs 714,576 by the importer. “In pursuance of information regarding concealment of the actual transaction value and clearance of electric goods/Hyundai brand circuit breakers at grossly under-invoiced value against submission of self-made invoice, cleared through Customs Appraisement West, was intercepted and detained by the staff of the Directorate of Intelligence and Investigation,” sources said.

mport of old and used auto parts including serviceable auto parts imported as steel scrap is banned in terms of IPO 2016 besides contravention cases are made out against all such importers and are being forwarded to adjudicating authorities for adjudication in terms of provisions, official sources said on Thursday. It was said that chassis of used auto motive vehicles cut into pieces whether or not described as steel scrap is also banned for import into the country. The sources said that in wake of above restriction and with a view to obviate chances of mis-declaration in import of old and used auto parts in the shape of scrap, a special procedure for examination has been prescribed. It was reported that in light of the stipulated procedure consignments of old and used auto parts can only be de-stuffed at specified places of the port and are subject to 100% examination by an officer not the rank of assistant/deputy collector of Customs. In order to discourage import of old and used auto parts, contravention cases are made out against all such imports and are forwarded to the adjudicating authorities for adjudication in terms of provisions, it was informed.

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rs 100m land scam: nAB nabs assistant commissioner he National Accountability Bureau (NAB) has arrested Assistant Commissioner Ali Zulfiqar Memon for his alleged involvement in a Rs100 million land scam. Memon, during his stint as mukhtiarkar in Qasimabad taluka, allegedly forged the land records in favour of Memon Housing Scheme and sold the land to the people. The housing scheme was spread over 24 acres of land. NAB spokesperson Rizwan Soomro said that the people were lured into purchasing pieces of land that never existed in the official land record. According to him, two real estate developers, Abdul Ghaffar Dada and Rafique Solangi, were also accused in the case.

He added that NAB is conducting raids to arrest other suspects.—CB Report

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hairman Federal Board of Revenue (FBR) Nisar Muhammad Khan said that broadening of tax base was vital for better development of the country and businessmen should cooperate in realizing these goals. He said more tax on non-Silers as compared to Silers was meant to encourage tax culture in the country and in the forthcoming budget tax rates for non-Silers would be further enhanced so that more people could feel temptation to come into the tax net. He was addressing business community at Islamabad Chamber of Commerce and Industry. FBR Member Operations Dr. Muhammad Irshad and Member Customs Nasir Masroor Ahmed also

accompanied him. Chairman FBR said that better growth of business activities was in FBR’s own interest as it would lead to increase in tax revenue.

He assured that FBR would not make policies or take measures that would create problems for taxpayers including business community. However, he said that FBR was responsible to receive tax from every taxable income.

He said FBR was focusing on broadening the tax base in the country due to which number of taxpayers have increased from 0.7-million to 1.1 million. He was of the view that further increase in taxpayers would lead to reduction in GST. Nisar Muhammad Khan said that Tax Advisory Committees would be formed in Islamabad in the next week that would be helpful in resolving the tax issues of the business community. He said previously our country had been relying on indirect taxation which put more burden

on the common man and added that now FBR would focus on direct taxation to promote progressive tax system. He said budget making process would start from Feb-March 2017 and stressed that ICCI should send its budget proposals to FBR as well as invite FBR ofSicials to Chamber so that budget could be Sinalized in consultation with stakeholders. He assured that all genuine tax issues of the business community would be resolved. Highlighting the issues of taxpayers, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that FBR’s raids on shops were creating harassment in the business community. He stressed that FBR should refrain from such coercive tactics and always take ICCI on board before taking action against any taxpayer of this region so that issues could be settled through negotiations.

Dg customs Valuation issues ruling no 999/2016

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KARACHI

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he Directorate General of Customs Valuation has revised the customs value of Linear Alkyl Benzene Sulphonic Acid (soft & hard type through Valuation Ruling No 999/2016 under Section 25-A of the Customs Act, 1969.

Consequent upon representation by commercial importers, regarding revision of Valuation Ruling No.880/2016 dated, 28-06-2016 for

Linear Alkyl Benzene Sulphonic Acid (Soft & Hard type), an exercise was undertaken to redetermine the Customs Values of Linear Alkyl Benzene Sulphonic Acid (soft & hard type) in terms of Section 25-A of the Customs Act, 1969.

Meeting with all the stakeholders including importers, local manufacturer, Pakistan Chemicals and Dyes Merchants Association and representatives from clearance Collectorates, was held on 16-122016 to discuss the current international prices of the subject item.

The commercial importers stated that the prices of subject items are showing down ward trend in the international markets whereas the local manufacturers stated that prices of raw materials have gone up in international market in last three months and requested to revise the value of Linear Alkyl Benzene Sulphonic Acid (soft & hard type) upward. The view point of all participants was heard in detail and considered to arrive at Customs value of Linear Alkyl Benzene Sulphonic Acid (Soft & Hard type).

Valuation methods provided in Section 25 of the Customs Act, 1969 were duly followed and applied sequentially to address the valuation issue at hand. Transaction value method provided in Sub-Section (1) of Section 25 was found inapplicable because it is generally known to all that majority of invoices produced at import stage are manipulated/fabricated and hence the requisite information required under the law was not available to arrive at the correct transaction value

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FIA arrests accused in illegal business of hundi hawala Tuesday January 3, 2017

Lahore

LAHORE: The Federal Investigation Agency (FIA) has arrested an accused who was running illegal money exchange. According to spokes person of FIA a raid was conducted by FIA Corporate Crime Circle team headed by Deputy Director Jamil Ahmad Mayo , Inspector Nasir Awan, Inspector Abdul Qayyum Inspector Shafqat Jabbar, Inspector Muhammad Ishfaq, Inspector at shop no 17 ground floor Aulia Centre where a person namely Muhammad Ibtisam was found involved in illegal business of hundi, hawala. He was found involved in illegal business of sending money abroad without permission of State Bank of Pakistan. FIA authorities recovered Pakistani currency amounting to Rs 800000, US$550, Saudi riyal 2000, Canadian dollars 900, receipts regarding hawala etc recovered from the premises.

customs Appellate Tribunal rejects appeal of Byco petroleum pakistan LAHORE

MuHAMMAD nAwAZ www.customsbulletin.com

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he Customs Appellate Tribunal has rejected an appeal filed by M/s Byco Petroleum Pakistan Limited against collector of customs, additional collector of customs (Adjudication), Faisalabad camp office at Model Customs Collectorate, Customs House Multan and director Intelligence and investigation, Multan.

Bench-II member technical Imran Tariq said in the remarks that the appellant needed to substantiate their case through some documentary evidence which they could not produce before the tribunal.

The appellant had failed to produce the record of SOPs issued by the Oil and Gas Regularity Authority

All pakistan Business forum’ hails decision to enhance trade ties with italy akistan and Italy have recently agreed to increase bilateral trade to $1.5 billion, raising it from the current volume of $1 billion (fiscal year 2016-2017). The ‘All Pakistan Business Forum’ (APBF) has lauded this decision made by the Pakistan-Italy ‘Joint Economic Commission’ (JEC), during some high-level meetings. The President of APBF while talking to Ibrahim Qureshi congratulated Italy’s Deputy Minister for Economic Development Ivan Scalfarotto – who is on an official visit to Pakistan. Qureshi stated that the business communities in both countries fully realize the importance and vast potential of trade between our two friendly nations. Some key areas for cooperation have already been identified, along with an agreement to nurture greater economic ties, to gain mutual benefits.—M Hayat

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(OGRA). According to details, the intelligence officer of the Directorate of Intelligence and Investigation, FIU Sadiqabad received information that a huge quantity of smuggled diesel will be transported from Balochistan to Rehim Yar Khan through oil tanker bearing registration No TLY-514 under the grab of fake documents showing lawful purchase. The staff of the customs intelligence seized the tanker loaded with 5,000 litter high speed diesel. After showcase notice, the adjudication authority heard the case and passed the order-in-original to confiscate the oil under clause (i) of section 156 (I) of customs act 1969.

Being aggrieved from the order, appellant filed the case before the customs appellate tribunal on the grounds that the impugned order is contrary to the law not sustainable and liable to be set aside.

collector Zulfiqar monitors anti-smuggling measures

LAHORE

M HAYAT

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ollector Preventive ZulSiqar Younas has visited Allama International Airport to monitor

the measures taken to curb smuggling of foreign currency, drugs, gold and other contraband. Anti-Narcotics Force (ANF) Regional Director Brig Khalid Goraya was also along with the collector to inspect the existing procedure and arrangements deployed to search and scan outbound and inbound passengers and baggage. Special teams

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have been constituted to search suspected international Slights and to monitor all the entry and exit points at the airport. According to a press release, both ofSicers discussed various proposals to improve information sharing, pooling of human and material resources for joint operations and to enhance overall effectiveness of their agencies. The ANF regional director instructed his Sield staff to extend all human and material cooperation to Pakistan Customs to make Lahore airport free from the menace of smuggling.

Meanwhile, Collector of Customs Preventive ZulSiqar Younas has participated in Christmas cake cutting ceremony at the Customs House to greet the Christian community, especially the Christian workers serving in the department. Sources said that on the instruction of Chief Collector Customs Central Madam Samaira Nazir, Customs Preventive Collector ZulSiqar Younas held the cake cutting ceremony and paid homage to the Christian community serving the homeland.

nAB to file two corruption references customs Tribunal adjourns hearing of 12 cases he Customs Appellate Tribunal Investigation Multan, Muhammad against ex-pM raja pervez Ashraf division bench-II comprising Ju- Afzal versus directorate of Intelligence

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he Executive Board Meeting (EBM) of National Accountability Bureau (NAB) was presided over by Chairman Qamar Zaman Chaudhry at NAB Headquarter. According to details Sirst corruption reference will be Siled against Raja Pervez Ashraf, ex-prime minister and others (M/S Reshma Power Generation Pvt Ltd). In this case, the accused persons were alleged for misuse of authority by misrepresentation of facts by Ministry of Water and Power to Economic Coordina-

tion Committee (ECC) and Cabinet etc. Thus caused a huge loss to the national exchequer. Second corruption reference to be Siled against Raja Pervez Ashraf, ex-prime minister and others (M/S Gulf Rental Power Case). In this case, the accused persons were alleged for misuse of authority by signing the contract without approval of NPGCL etc. Thus caused a loss to the national exchequer. The Executive Board Meeting decided to authorize three (3) investigations.—M Imran Mehar

dicial Member Omer Arshad Hakeem and Technical Member Imran Tariq heard 12 cases and adjourned all the cases until the next date of hearing. The cases included directorate of Intelligence and Investigation Lahore versus Shaukat Ali, Aamir Muhammad Khan versus directorate of Intelligence and Investigation Lahore, Ali Shan versus directorate of Intelligence and Investigation Lahore. On Thursday, tribunal heard Muhammad Ayub versus directorate of Intelligence and Investigation Lahore, Rao Muhammad Aslam versus directorate of Intelligence and

and Investigation Faisalabad, Rana Shaukat versus directorate of Intelligence and Investigation Lahore, Cres Pak International versus directorate of Intelligence and Investigation Lahore, Shaukat Ali versus directorate of Intelligence and Investigation Gujrat. Furthermore, Customs Appellate Tribunal hears, Ishtiaq Ahmed versus directorate of Intelligence and Investigation Multan, Rehmat Ullah versus directorate of Intelligence and Investigation Lahore and Zulifqar Pathan versus directorate of Intelligence and Investigation Lahore.—Muhammad Nawaz

pcA detects rs 1.38m duty, tax evasion by Tara crop

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LAHORE

M HAYAT

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he Customs Post Clarence Audit (PCA) has detected Rs 1.38 million tax evasion by Tara Crop Science (Private) Limited Canal Bank, Johar Town, Lahore on account of inadmissible exemption of SRO 567 (I) 2006 and SRO 1007 (1)/ 2005. The

Directorate of the Post Clearance Audit Lahore observed that certain importers, engaged in manufacturing of pesticides and other agro chemicals, are allegedly involved in the evasion of duties and tax during customs clearance of zinc sulphate 33 percent which is classiSied under PCT heading 2833, 2940 by availing irregular exemption of customs duty under S. No 4 of SRO567 (1)/2006 and exemption of

sales tax S. No 5 of table-II of SRO 1007 (I) 2005. The PCA observed that the said SROs were meant for poultry ingredients only. It was observed that Tara Crop imported a consignment of the impugned goods which were prima facie were fertilizers and as such not entitled for the exemption of customs duty and sales tax under the said SROs during calendar year 2014.

The PCA said that the mis-declaration

resulted in the duty and taxes evasion to the tune of Rs 1.38 million and added that it is directed that the short paid amount may be deposited positively. The directorate said that in case of disagreement with the audit observations, the company may provide a written clariSication along-with supporting documents including goods declaration, commercial Performa invoice, L/C invoices, packing.

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Ports of Auckland to look at powering cruise ships from the grid WASHINGTON: Cruise ships in Auckland’s port could soon be powered by “plugging” them into the national power grid. Ports of Auckland hoped it would reduce its emissions and the ship’s carbon footprint as a result. The port has commissioned a feasibility study to look at alternative methods for powering cruise ships when they are berthed in port.

Ports of Auckland’s study would consider powering ships from the national grid, known as shore power or “cold ironing”, as the main alternative, but would also look at alternatives which included LNG and low-sulphur fuels. Chief executive Tony Gibson said the study, due to be completed by April, would support its effort to become carbon neutral by 2025 and to have zero emissions by 2040.

Sandahlsbolagen to operate terminal at gothenburg port andahlsbolagen has for long time shown an interest in running a intermodal terminal at the Port of Gothenburg. We are extremely pleased that one of the most experienced companies in this sector in Sweden has opted to establish operations at the port,” said Arvid Guthed, Vice President Port Development at Gothenburg Port Authority. At the end of next year, the intermodal terminal besides the central station in Gothenburg will move to the outer port area on the island of Hisingen. The reason behind the move is the planned development of the city centre and the construction of the West Link rail tunnel. The move will reduce road

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traffic in the centre of Gothenburg significantly. Locating the terminal close to the port will facilitate the introduction of new transport systems that will link up shipping and rail traffic. The running of the new intermodal terminal will be handled by the family-owned transport company Sandahlsbolagen Sweden AB. The company already operates terminals in Luleå, Umeå, Sundsvall and Jönköping. “We are looking forward to running a intermodal terminal beside the largest port in the Nordic region and we are proud of the trust that has been shown in us.

It will be an open access terminal for all rail operators that are interested,” said Thord Sandahl, chief executive of Sandahlsbolagen Sweden AB. The Port of Gothenburg is renowned for its rail shuttles. Today, more than 50 per cent of containers arrive at the port by rail instead of by road, with considerable environmental benefits as a result.—CB Report

Ports & Shipping

port of Vancouver files $338,000 suit against tenant WASHINGTON

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he Port of Vancouver is suing one of its tenants, PaciSic Coast Shredding, for nearly $388,000, claiming it violated a lease agreement. The lawsuit was Siled Dec. 15 in Clark County Superior Court. Victor Winkler, CEO of PaciSic Coast Shredding, said he wasn’t aware of the details because his company has yet to be served.

“They haven’t served us anything, but I’m not too nervous,” he said. “I think the attorneys must be hurting for work because it’s another one they can’t win.”

Port spokeswoman Abbi Russell declined to comment because the lawsuit is active. The issue centers around Sive acres of land the port leased to PaciSic Coast Shredding, which processes scrap metal and makes it ready for recycling. The port claims that PaciSic Coast Shredding didn’t return 0.3 acres of the leased property in the same condition as when it was leased.

The port claims it had to pay for removal and disposal of contaminated material on the parcel. Now the port is seeking reimbursement for cleanup costs, plus about 9 months of hold-over rent, fees that it incurred with interest. The $388,000 being sought breaks down like this: $240,700, plus interest for cleanup costs and $147,200 in rent on the 0.3 acres from January 2014 to July 2015, plus interest. The port is also seeking reimbursement for fees paid to attorneys and experts. According to the complaint, the port leased the

5 acres to PaciSic Coast Shredding for $10,830 per month from February 2012 through the end of 2013. The company used the property to store steel slabs, coils, plate, structural and other materials, as well as recycling containers. The documents also say the company tried to vacated the property around Dec. 31, 2013 by removing its stockpiled materials, but it left scrap metal, debris and other materials behind. Also, the company allegedly left behind contaminated soils on top of the contamination that was already on the site.

Tuesday January 3, 2017

enviva begins exports at wilmington port he Enviva terminal, which Port of Wilmington officials estimate will bring more than $16 million to the local economy annually, is beginning exports from the port this week. Officials said that the Enviva wood pellet domes at the port currently are operational and are loading the first shipment to Europe.

The terminal includes two storage domes that can hold up to 45,000 metric tons of wood pellets each. “The Port of Wilmington is a key nexus for global commerce and an economic engine for the state of North Carolina,” said Enviva CEO John Keppler. “We are excited to be an important part of the port’s ever-increasing volume of trade.”The rail link has the capacity to handle approximately 50 percent of the volume of wood pellets delivered to the port while the remainder arrives by truck. “The Enviva domes are an important part of our ports modernization plan,” said North Carolina Ports Executive Director Paul J. Cozza. “This project will increase bulk exports, thus expanding the business of our general terminals which is a vital portion of our strategic plan.”—CB Report

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port of galveston appoints interim director T

WASHINGTON

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he Port of Galveston is promoting Deputy Port Director Peter Simons to interim port director effective Jan. 1, the Board of Trustees of the Galveston Wharves decided earlier this week.

Simons is replacing Michael Mierzwa who retires at the end of this year.

I’m excited,” Simons said Thursday.

“It’s a great time for the port.” One of his initiatives will be reorganizing port staff to better executive the Wharves Board of Trustees’ goals and objectives.

These include growing and diversifying the port’s cargo base, using soil to Sill in an unused ship slip to store cargo, and planning on at strategic and tactical level. He also seeks to build upon the port’s growing cruise business and its other business opportunities, such as the new vehicle

distribution center. Simons will be evaluated on a month-by-month basis as the board determines how it will proceed with naming a permanent port director. Simons’ annual contract is $200,000 as long as he remains in the interim position. Meanwhile, This is critical to achieving the mission of bringing economic beneSit to the community,” she said. Mike Schiller, director of business development at the port, said staff has spoken with several interested parties about moving into the building, but as of yet there aren’t any committed tenants. Schiller also said an extra incentive for manufacturers is the port’s status as a federal foreign trade zone. That allows manufacturers to bring in raw materials which ordinarily might be taxed individually and at different rates and combine them into Sinished goods which are taxed after a sale is made.

The zone is supervised by the U.S. Customs and Border Protection ofSice

in Portland. The building is currently under construction and is set to be complete by sometime next summer.

The port plans to rent the space at about $0.48 per square foot with a surcharge of $0.85 for per square foot for ofSice space. The Centennial Industrial Park was partly funded with a grant from the Washington State Department of Commerce. The Centennial Industrial Building is being funded through revenue bonds.

Hutchison Ports has signed an MOU with the Government of Ukraine for the development of Chornomorsk Port on the Black Sea. The MOU was signed by Clemence Cheng, Managing Director Hutchison Ports Europe, and Volodymyr Omelyan, the Ukrainian Minister of Infrastructure during a visit by the Minister to the Port of Felixstowe. The Minister was joined by Ukrainian Ambassador to the UK, Natalia Galibarenko. Commenting on the agreement, Clemence Cheng, said:

“We are delighted to sign this Memorandum of Understanding with the Government of Ukraine to develop container terminal facilities at Chornomorsk. We have long seen the potential for growth in container business in Ukraine and look forward to working together with the Ministry of Infrastructure to realise our shared aim of developing world class port facilities to facilitate trade.”Minister Omelyan added: “I am glad that the world’s leading port operator enters Ukraine’s maritime market. Government is committed to Sinalize the agreement and to close the deal in 2017.” Chornomorsk is one of the largest ports in the Black Sea handling a range of cargo including containers, ferries, general and bulk cargoes. Situated in the south-western region of Ukraine 20km south of Odessa, Chornomorsk has established rail connections to the capital Kiev and existing skilled workforce.

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Sindh edu dept to launch online communication system like FBR KARACHI: The Sindh Education and Literacy Department (SELD) has announced to develop a web-based communication programme like the Federal Board of Revenue (FBR). The SELD is launching the programme to streamline communications, improve coordination etc within the department. The education department is gearing up for web-based internal communication system for the department with the help of World Bank. “The system would have communication tool such as email, Internet calling, MIS and compliance report ,email, user extensions.

Tuesday, January 3, 2017

CUSTOMS BULLETIN

Multan customs sends notices to pSo for recovery of regulatory duty of rs.263m MULTAN iMrAn ALi

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he Model Customs Collectorate has issued notices to Pakistan State Oil (PSO) and Shell petroleum for recovery of their arrears.

According to details, the Collectorate of Multan Customs has issued notice for collection of regulatory duty from Pakistan State Oil and Shell Petroleum Company. Both petroleum oil companies are located in the Mehmood Kot which comes under the jurisdiction of Multan Customs. The Federal Board of Revenue Secretary (Tariff-I) has directed Customs Collectorate to recover the regulatory duty arrears from both companies. The decision for the recovery of regulatory duty from both oil companies were taken in the meeting of Economic Coordination Committee. Pakistan State Oil has imported High Speed Diesel (HSD) quantity of 198994004 liters through 30 various GDs cleared from Multan Dry Port in and Pakistan State Oil was levied Rs.225.31 million regulatory duty on their oil imports. The Federal Board of Revenue has also asked Shell Company Mehmood Kot to deposit regulatory

duty of Rs.37.69 million to Customs Collectorate for the import clearances of High Speed Diesel Oil. Shell Company Mehmood Kot have handled almost 11 consignments from

Multan Dry Port in which they cleared 37698922 liters of High Speed Diesel (HSD) from Multan Dry Port. The Customs Collectorate Multan already directed by Federal

Board of Revenue to recover outstanding dues of Rs.263 million as regulatory duty from Shell and Pakistan State Oil Mehmood Kot. It is necessary to mention here that Col-

lector Safraz Ahmed Warriach already directed customs Sield ofSices to use all resources to recover outstanding amount from defaulters on priority basis.

SHc seeks comment from tax authorities in mis-declaration case KARACHI

M BiLAL

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he Sindh High Court (SHC) has sought comments from the tax authorities on a constitutional petition Siled by M/s Farooq Corporation in an alleged tax evasion case of Rs 0.992 million.

A two-member bench, comprising Justice Munib Akhtar and Justice Muhammad Humayon Khan,

heard the petition. During the hearing, counsel for the Customs Department sought time to submit para-wise comments, therefore, the court granted time and directed the custom authorities to Sile their para-wise comments on the next date of hearing. The court adjourned the hearing for December 26, 2016. Earlier, counsel for the petitioner stated that the customs authorities issued notice to the petitioner, alleging that petitioner’s company imported baby battery-operated tricycles in the guise of baby trike parts by misdeclaration and gross under valu-

ation. After examination of the consignment by both the directorate and collectorate, it was conSirmed that baby tricycle batteries were being imported instead of declared baby trike parts, evading taxes of Rs 0.992 million.

Counsel for the petitioner argued that the importer had fulSilled all requirements and paid all liable duty and taxes, therefore act of the respondents is illegal, mala Side and of no legal effects.

Citing Sectary Revenue Division, the Directorate of Customs Intelligence (Enforcement) and Customs Collectorate Appraise-

ment-West and others, importer pleaded the court may declare that act of the respondents is illegal and mala Side and restrain them from taking any coercive action against the petitioner.

Meanwhile, The Sindh High Court (SHC) has suspended the impugned recovery notice of income tax on a constitutional petition filed by Shahyar Manzoor Advocate, seeking de-freezing his bank accounts seized by tax authorities over income tax year 2011. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition.

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During the hearing, both sides’ counsels argued. After their arguments, the court disposed of the petition with observation that: “The recovery notice issued on December 7, 2015 under SRO 140 of the Income Tax Ordinance 2011 by respondents in hereby set aside in respect of the petitioner for the tax year 2011, shall not be treated as final order for the reasons that the notices as well as other orders were admittedly not served upon the petitioner in accordance with the provision of section 218 of the Income Tax Ordinance, 2011.”