Tuesday, 2 January 2018 by customs bulletin

Daily on www.customsbulletin.com

Find us on

pAkiStAn’S fiRSt inDeptH newSpApeR on cuStoMS

Daily

ABC Certified

Karachi, Tue Janaury 2, 2018

ISLAMABAD

M ARSHAD

www.customsbulletin.com

acant posts, delayed promotions and lack of qualiPied ofPicers are major hurdle in meeting the revenue collection target by the Federal Board of Revenue (FBR). Currently, some 21 posts of grade 21 and 35 posts of grade 20 are lying vacant only in Inland Revenue Department. Sources told Customs Today that the FBR was

preparing for the upcoming meeting of the Central Selection Board scheduled to be held from January 912. On the basis of the preparations, Chairman FBR Tariq Mahmood Pasha will present recommendations to the Chairman Central Selection Board which is also Chairman of the Federal Public Service Commission (FPSC). The Central Selection Board is meeting after almost one year because previous meeting was held in February 2016. Normally, the Board meets after every six months to re-

Vol 2, Issue No. 311

Price Rs. 14.00

view the promotion related issues of the ofPicers; however, this time, it could not meet due to certain issues and problems. “In the promotion process normally those ofPicers are given priority who may have been selected by the board in the past but their promotion may have been deferred,” the sources said, adding that the vacant posts would be Pilled with the promotion of ofPicers and it would enhance the working capacity of the Inland Revenue for meeting the revenue collection target.

Customs Islamabad generates Rs1805 million additional revenue

DG Valuation Surriya to revise VR No 757/2015 on January 25

Customs Intelligence recovers NDP auto parts from McLeoad Road

Miftah plans significant tax reforms in five months

Customs Export retrieves evaded duties after serving notices on defaulter Co

MCC Islamabad collected Rs1805m more revenue than an assigned revenue | See pAge 02 |

DG Valuation has decided to revise the Valuation Ruling No: 757/2015 on Jan 25 | See pAge 03 |

CustomsI&Iteamraidedlocatedat&recover huge quantity of NDP motor cycle parts | See pAge 04 |

New finance ministry chief Miftah said he plans significant tax reforms | See pAge 14 |

Customs Export has recovered evaded amount of taxes and duties of Rs6.12m | See pAge 16 |

www.customsbulletin.com

FST to resume hearing of cases in ﬁrst week of January Tuesday, January 2, 2018

ISLAMABAD: The Federal Service Tribunal would resume the hearing of cases during first week of January, 2018, till then the tribunal would not be hearing cases. Officials stated that the tribunal had announced winter vacation till first week of January, 2018. Earlier, while hearing the cases, the tribunal had reserved a decision and issued directives on the submission of record on a couple of service matters. The FST division benches, comprising Member, Rafique Shah and Dr Nazir and Member Rafique Shah and Dr Nazir, were hearing the cases.

Islamabad

customs islamabad generates Rs1805 million additional revenue

ISLAMABAD

nAeeM uLLAH tARiQ

tARiQ DeRYA

www.customsbulletin.com

ustoms Appellate Tribunal Chairman Justice (r) Malik Manzoor Hussain will resume the hearing of pending cases at the tribunal’s headquarters during first week of year 2018. The chairman would visit the the capital owing to increasing load of cases during recent months, sources said. M/s Danial Engineering and others, Muhammad Riaz and others, M/s Expert Chemico Trading Co, M/s Fazal Rahim, and M/s Shaista Gul and others had filed cases which would be heard by the chairman in a single bench. These cases had been filed against Collectorate of Customs, Islamabad. The chairman would also hear cases in division bench. During his visit he had heard around a dozen cases filed by M/s Waseem Autos, M/s Nisar Traders, M/s Parts & Parts, M/s Chief Autos, M/s Aman Elahi, M/s Kohinoor Traders, M/s Saleem Silk Centre, M/s Five Star Trading, M/s Pakistan Royal Group and M/s Nayatel Private Limited, M/s Degicell & others, M/s Kohinoor Chemical, Mirza Muhammad Majid, M/s Fazal Razaq, M/s Fazal Ur Rehman and Gul Rehman & others.

he Model Customs Collectorate Islamabad collected Rs1805million more revenue than an assigned revenue collection target under all the heads during July to 15th of December Fiscal Year 2017-18. According to details given by Saeed Khan Jadoon, Collector Model Customs Collectorate (MCC) Islamabad, that, during above said period, the collectorate received Rs8460million as all duties and taxes while it was assigned a proportional revenue collection target of Rs6655million. The Collector MCC Islamabad informed CT that, during Pive months and three weeks of FY17-18, the collectorate earned Rs2751million as Customs Duty (CD) while the Collectorate of Islamabad was allocated a revenue target of Rs2777million as CD. Saeed Khan Jadoon told the correspondent that MCC Islamabad collected Rs3852million of Sales Tax (ST) against an earmarked revenue collection target of Rs2340million. The collector added that MCC Islamabad earned Rs205million as Federal Excise Duty (FED) against an assigned proportional revenue target of Rs195million of FED for the period of July to 15th December FY17-18. He said the Collectorate of Islamabad got Rs1651million as In-

customs tribunal chairman to hear pending cases from next week

come Tax (IT) against an allocated proportional revenue collection target of Rs1342million of IT during Pive months and 15 days of December FY17-18. The MCC Islamabad generated extra revenue of Rs1804million against an ear-

marked revenue target while it did revenue of Rs-26.45million of CD against assigned revenue target whereas Collectorate of Islamabad generated Rs1512million surplus revenue as ST against an assigned target. The MCC Islamabad received

Rs9.25million extra revenue under the head of FED against an allocated target. And the same Collectorate of Islamabad got Rs309million additional revenue of IT against an earmarked revenue collection target for July to 15th of December FY17-18.

Smuggled items worth Rs44.207b seized in more than three years

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he authorities, as part of their measures to control smuggling of animals and other items, have seized such things and articles worth Rs. 44.207 billion during last three years and three months. As regards smuggling of live animals, Pakistan Customs took various steps including enhanced vigilance on smuggling prone routes,

closer coordination with other LEAs, and effective use of various Customs Check Posts. This resulted in seizures by Model Collectorate of Customs, Quetta, of 978 animals of Cost, Insurance and Freight (CIF) value amounting to Rs.21.483 million during 2016-17 and 431 animals of CIF value amounting to Rs.14.064 million during this year. In case of other items, a visible increase in seizures of smuggled goods can be observed, due to heightened enforcement ef-

forts made by Pakistan Customs. The year-wise statistics about seizure of smuggled items have revealed that during year 2014-15, the goods worth Rs. 9.582 were seized, during 2015-16 the worth of seized items was Rs. 14.343 billion,n Rs. 15.652 billion during 2016-17 and during July to October, 2017 the worth of seized smuggled goods was Rs. 4.63 billion. The data issued by Finance and Revenue Division on Tuesday showed that task of preventing

smuggling from neighboring countries is challenging due to long porous Iran borders, mountainous terrain, tribal society as well as volatile law and order situation in the region. Apart from a few designated Customs Stations/posts, the Customs department has no physical presence on international borders for preventing smuggling of animals and other items through unfrequented routes which are being manned by other Law Enforcement Agencies (LEAs). That is why

the Federal Board of Revenue has authorized officers of Pakistan Rangers, Frontier Corps Khyber Paktunkhwa including Federally Administered Tribal Areas (FATA) to exercise anti-smuggling powers under section 6 of Customs Act, 1969 within 20 kms of international borders. Likewise, Pakistan Coast Guards and Pakistan Maritime Security Agency are empowered to exercise anti-smuggling powers along the coastline and in high seas.

www.customsbulletin.com

SHC orders Customs to release consignments KARACHI: The Sindh High Court has ordered release of consignments giving relief of Section 81 to the petitioners/ importers. A SHC’s appellate bench, comprising Justice Munib Akhtar and Justice Omar Sial, heard Imran Iqbal Khan, Asad raza Khan and Salman advocates representing a number of petitioners. The counsel submitted that SHC customs bench has allowed interim relief of release of goods where the importer/petitioner has questioned the Valuation Ruling for being issued in violation of Section 25-D of the Customs Act 1969.

customs export recovers evaded taxes and duties of Rs 7.18m

Tuesday January 2, 2018

Karachi

Dg Valuation Surriya to revise VR no 779/2015 on January 16

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Customs Export has recovered evaded amount of taxes and duties of Rs 7.18 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s MK Enterprises availed undue benefits and concessions by importing diﬀerent consignments by misusing the SRO 567 through Examiner Touheed Sultan. Sources told the company was allegedly involved in tax evasion of Rs 2.90 million. After detecting the tax evasion, the Customs Export issued them a final notice on to deposit the evaded amount within 14 days.

Adjudication-ii recovers Rs 3.12m from Rabia traders KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Custom Adjudication-II has served a show cause notice on a defaulter named M/s Sabiha Garments and Export and recovered Rs 3.12 million from M/s Rabia Traders Karachi in another case. Sources told Customs Today, that M/s Sabiha Garmnents and Export was allegedly involved in tax evasion. The company imported different types of embroidery machines on October 19, 2017 and used the wrong PCT heading. The consignment was cleared by Examiner Mustafa Ali Bilgrami. After a careful investigation, the Customs Adjudication-II issued a final notice to the company to clear the outstanding amount of Rs 4.25 million and file all documents who used the clearance time within 14 days or receiving show cause.

KARACHI

wAQAR AHMeD AnSARi www.customsbulletin.com

irectorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 779/2015 on January 16, 2018, it is learnt. According to the details, Director General Surriya Butt has said that the department was reviewing suggestions from importers to set new prices of silicone in primary form. She said that some valuations, which were issued in 2015, were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international markets. Sources said that a petition was submitted by the importers to Customs Valuation in which change in prices of silicone in primary form was requested. Sources told the Valuation Ruling No: 779/2015 was issued on December 8, 2015. A meeting was held with the stakeholders on 20 December 2017. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained. Meanwhile, Directorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 757/2015 on January 25, 2018, it

is learnt here. According to the details, Director General Surriya Butt has said that the department is reviewing suggestions from importers to set new prices of halal chicken and turkey meat (frozen). She said that some valuations, which were issued in 2015, were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international markets. Sources told that a petition was submitted by the importers to the Customs Valuation in which change in

Sources told that a petition was submitted by the importers to customs Valuation in which change in prices of silicone in primary form was requested

Another importer challenges VR no 874/2016 in SHc

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Sindh High Court (SHC) issued notices to the customs authorities and deputy attorney general, directing them to Pile their respective para wise comments on a constitutional petition Piled by M/s FL Enterprises and nine other importers. The petitioner has challenged the determination of customs val-

ues of “ceramic and porcelain tiles” over and above 12.5 percent of the valuation ruling no 874/2016 by Director General of Valuation. A two-member bench, comprising Justice Munib Akhtar and Justice Omer Sial, was hearing the petition. Earlier, counsel for the petitioners stated that they import goods having description “ceramic and porcelain tiles”.It was informed by the Customs Department that Director General, Directorate General of Customs Valuation, Customs House

Karachi conducted revision proceedings under section 25 D. However, the petitioner submitted that the DG had no jurisdiction to revise customs values of the subject goods over and above 12.5 percent of the valuation ruling no 874/2016 dated 22/06/2016. Citing Chairman Federal Board of Revenue, Collector of Customs Collectorate West, Collector of Customs Collectorate East, Collector of Customs Collectorate Port Muhammad Bin Qasim and Director General.

the prices of halal chicken & Turkey meat ( frozen) was requested. Sources told that the Valuation Ruling No: 757/2015 was issued on September 3, 2015. A meeting was held with the stakeholder’s on 19 December 2017. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained.

fiA arrests two human traﬃckers ederal Investigation Agency (FIA) Gujrat has conducted raids in different areas and arrested two human traffickers. According to FIA spokesman, the FIA team arrested Muhammad Arif of Wazirabad area and Sulman Shahbaz of Kamokee, district Gujranwala. The accused were involved in human trafficking cases.

www.customsbulletin.com

Court approves judicial remand of accused involved in mobile smuggling Tuesday January 2, 2018

Lahore

LAHORE: The Special Federal Court of Customs Taxation and Anti Smuggling has approved 14 days judicial remand of the accused, who was arrested in smuggling of cigarettes, cloths, mobile phones and some other items as well. According to details an accused Muhammad Hassan was arrested by the customs intelligence authorities from Lahore. Customs intelligence authorities conducted an operation on intelligence information at Band Road Lahore and arrested an accused Muhammad Hassan. Customs Intelligence recovered smuggled and non-customs paid clothes, mobile phones, cigarettes, and ﬁre works from the accused.

Appeal filed by M/s Al Moiz industries enters into final hearings LAHORE

SAJiD nAwAZ

www.customsbulletin.com

he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Piled by M/s Al- Moiz Industries against the Large Taxpayer Unit (LTU) until the next date of hearing. The same was heard last month and was put off for the next date. According to the details, FTO Advisor Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the LTU had failed to satisfy the appellant in refund case. He added that the LTU collected excessive tax from the company during the last three years. The petitioner approached the department many times but it failed to pay the refunds after the passage

fiA arrests three human traﬃckers

ederal Investigation Agency (FIA) Gujrat on conducted raids in different areas and arrested three land route agents. According to FIA spokesman, FIA team arrested Muhammad Arif resident of Wazirabad area, Salman Shahbaz of Kamokee district Gujranwala and Ameer of Meyana Gondal district Mandi Bahauddin. The accused were involved in human trafficking cases. Further investigation is underway. –CB Report

of a reasonable time. At the end, the appellant decided to approach the Federal Tax Ombudsman (FTO) seeking interference in this case. The counsel appealed the FTO advisor to direct the LTU to clear the refund claims. After hearing the arguments from both sides, FTO adjourned hearing of the case until next date for further hearing and directed the parties to appear on said date to present arguments in the case. The same case will be heard on the next reserved date. Meanwhile, The Federal Tax Ombudsman (FTO) has adjourned the hearing of a case Piled by Shabbir Hussain Khan and Khal Ferosh, Railway Road Gujrat, against the Regional Tax OfPice (RTO), Sialkot, until the next hearing. According to details, FTO Advisor Haji Ahmed heard the case in which counsel for the appellant argued that the RTO had failed to release the sales tax refund of the last two years claimed by the company.

customs intelligence recovers nDp auto parts from McLeoad Road

LAHORE

M HAYAt

www.customsbulletin.com

irectorate of Customs Intelligence and Investigation (I&I) team raided Al-

Falah Plaza located at McLeod Road and recover huge quantity of non duty paid motor cycle parts and chains. The market value of the seized auto parts is Rs50 million. Sources told Customs Today, that Deputy Director Customs Intelligence Usman Tariq received credible information about smuggling of non

duty paid auto parts. He immediately constituted a raiding team comprising Superintendent Saleemullah Kha, ZulPiqar Ali Dogar, Agha Sultan Haider, Sohail Haider. The raided a godown located at Al-Falah Plaza and recovered huge quantity of non duty paid auto parts which were tactfully hidden in secret places of godown. Sources told that these goods were smuggled through Chaman border to Lahore. Sources told that no one was present at the time of raid. Customs Intelligence team seized all the goods and after registering a case started further investigations. During another operation Customs Intelligence and Investigation team intercepted a Daweoo bus near Babu Sabu Interchange and during checking of vehicle recovered non paid team, Rani Juices and other goods. Customs Intelligence team seized the goods and after registering a case forwarded the case to Customs Adjudication for further proceedings.

customs tribunal remits fine of Rs50000; tribunal orders vehicle owner to pay duties reduces 10pc fine from 20pc on iranian tiles he Customs Appellate Tribunal per brief history of case reported by

he Customs Appellate Tribunal has reduced a redemption Pine of 20 percent to 10 percent plus duties and taxes on the conPiscated Iranian ceramic tiles and also remitted a penalty of Rs50000. Muhammad Shabbir Gujjar, Member Judicial, heard the arguments from both sides and decided the case with remarks that if duties and taxes have been deposited then the same goods are released without payment of duties and taxes. However taking a lenient view, the redemption Pine of

20 percent is reduced by 10 percent and penalty is remitted. After taking a search warrant from the judicial magistrate, the staff of I & I Gujranwala had raided the godown situated near Upper Chenab Bridge, GT Road Gujranwala, and found a huge quantity of non-duty-paid Iranian ceramic tiles. The owner of godown failed to produce documents regarding the lawful import of tiles and the same items were seized under Section 17 read with Section 2 (kk) of the Customs Act-1969. –CB Report

has dismissed an appeal Piled by one Muhammad Yousaf against the Additional Collector of (Customs), Nabha Road Lahore, and other staff. Muhammad Shabbir Gujjar, Member Judicial Bench-I, heard the arguments from both sides and decided the case with remarks that there is no force in arguments advanced by the learned counsel for the appellant therefore appeal is liable to be dismissed being barred by the time as it is beyond the statutory time period under sub section (3) of section 194-A of Customs Act-1969. As

Superintendent of Intelligence and Investigation FBR Gujranwala that the staff of the Directorate of Intelligence and Investigation-FBR Rang OfPice Gujranwala intercepted one Toyota Hilux Surf Jeep at Taj intersection, Eminabad, District Gujranwala. The occupant mentioned his name as Imran. On demand, he failed to produce documents regarding the lawful import of the vehicle. Consequently, the vehicle was impounded under Section 2kk read with section 17 of Customs Act-1969 for further veriPication. –CB Report

tribunal remands back a vehicle case for fresh order

LAHORE

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Customs Appellate Tribunal has remanded back an appeal Piled by M/s Idrees Enterprises and three others versus Additional Collector of Customs (Adjudication) Lahore and others. Muhammad Shabbir Gujjar,

Member Judicial, heard the arguments from both sides and decided the case with remarks that departmental representative from the respondent has agreed with lapse made by the appellant so, with the consent of both parties, the impugned order is set aside and case is remanded back to the learned adjudication authority for a decision of fresh hearing after giving an oppor-

tunity of hearing to the parties within 45 days from the receiving of order. During the course of audit by the Customs Department, the team found mis-declaration in the PCT heading in the import of Suzuki pickup and an order was passed to pay 35 percent duty instead of 15 percent as per law. During the process of hearing, no one appeared before the Cus-

toms Appellate Tribunal on behalf of the appellant’s side. Consequently, the adjudication authority has passed the order in favour of the department. Resultantly, the appellant Piled the case before the tribunal on the ground that the adjudication authority passed the order without providing sufPicient opportunities of hearing which is against the principle of nature.

www.customsbulletin.com

LAHORE M HAYAt www.customsbulletin.com

nti-Smuggling Organization (ASO) of Customs Collectorate of Preventive has performed exceptionally well by impounding non-duty paid vehicles, goods and articles worth Rs 616 million during the Pirst six months of Pinancial year 2017-18 against Rs 154 million during the same period of the last Pinancial year 2016-17. Talking to Customs Today, Collector of Customs Preventive said that the ASO has been reorganized by posting ofPicers of good professional reputation. The Customs Collectorate ASO, under the supervision of Collector Customs Faiz Ahmed, raided a gowdown and intercepted 47 illegally imported vehicles worth Rs 81 million and impounded contraband goods worth Rs 535 million, including mobile phones, cloth, cigarettes, Gutka, liquor, electronic item and other miscellaneous goods. The Collectorate registered a solid growth of 314 percent in term of value of goods and vehicles while 23 percent growth in terms of cases during the six month of Pinancial year 2017-18 against the same period last Pinancial year. He said that the ASO ofPicials have been instructed to adopt zero tolerance against the illegally imported vehicles and items inPlicting heavy losses to the national exchequer. He said that vigilance far and wide across the adjacent areas have been improved with

Tuesday, January 2, 2018

simple and to the target measures. “The very steps and honesty of the purpose have resulted in making such the huge difference and whole of ASO team also deserves appreciation and gratitude that chased the smugglers to their dens creating exemplary deterrence against the all type of smuggling,” the collector said adding that the we have enhanced surveillance of a number of godown which are reported to be dumped with the illegally imported items. The collector said that the cases and FIRs are lodged in accordance with the provisions of the Customs

laws allowing the parties fair time period and chance to produce documents against the detained items and vehicles. Quoting the example of the recent mega seizure of the over Rs300 million Q-Mobile, the collector said that the Collectorate lodged FIR after 20 days allowing the party in question reasonable time to produce legal import documents if they have any. The Customs Collectorate’s ASO impounded 11 illegally imported cars worth Rs10 million and seized over Rs53 million goods and articles during the month of July while 13 vehicles Rs21 million and goods and articles worth Rs62 million conPiscated in 23 cases during the month of July 2017-18. In the same way the Collectoarte ASO team impounded 8 NDP cars worth Rs10 million and Rs43 million’s contraband items were seized during the month of September. During the month of October the Collectorate’s ASO team registered 37 cases worth Rs 55 million against the llector seized vehicles and articles. o c f o ion s i v However, the ASO team was able r e a up aided r the s r to conPiscate made mega Rs309 e , d d n e u ASo, gally z Ahm i e l million cases during the month a l i f s 7 d4 custom n of November. In the same rcepte o i e l t l i n i m 81 and s n R month the ASO team seized w h t o r o gowd icles w goods over 40000 smart mobile sets h d e n v a d b te e ntra l i o of Q-Mobiles. The collectoarte c b impor o d e m pound luding till the December 28 was able c n i , r , o n and im u millio to 16 cases worth Rs 51 miltka, liq Rs 535 es, gu t t e r lion while it was reported that a worth g i r c e , h the ASO had in the pipeline s, cloth and ot phone c item i n o mega seizures till the end of the r ds t o o g elec s eou month of December 2017. cellan

mis

www.customsbulletin.com

Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDitoRiAL

fall of bitcoin’s price

itcoin, which climbed from less than one dollar in 2009 to as high as $20,000 in 2017, has plunged below $13,000 just in five days. According to financial experts, Bitcoin is a new international currency which works without a central bank or single administrator. The system works peer-topeer in which transactions take place directly between users without any intermediary. Transactions are verified by a network of nodes and are recorded in a ledger known as blockchain. The origin of Bitcoin is shrouded in mystery as the currency was invented by unidentified group of people under the name Satoshi Nakamoto and was released as open-source software in 2009. The digital currency was going up at a fast speed to experience a twentyfold increase since the start of the current year, climbing up to $20,000. Many countries, including Pakistan, have yet to make laws to regulate or operate the digital currency within their geographical boundaries. As the shabby currency had been disproportionally taking over the attention of the world financial managers, the last week was the worst week of its performance. The bubble has just burst. Bitcoin has been falling with increased losses for new entrants in the digital currency market since less than a week. The future is unpredictable as it is appearing as big threat to world’s strongest currencies – dollar – as well as British pound and euro. According to an expert of the world currencies, a manic upward swing could be followed by a downturn with the change of sentiment. When value of a script goes out of proportion, the traders start waiting for a correction. Some believe the traders will say goodbye to cryptocurrency this year. The profit taking move by the traders is looming large at the world stock exchanges. According to Coinbase, a USbased company which provides digital wallets for storing bitcoin, it will investigate the sharp rise and fall of the currency in short span of time. Some European bankers have started calling it a deadly gamble and warn about the risks of at volatile and unregulated market. When a script starts falling, everyone is ready to oﬄoad the burden and this is happening to the digital currency. The fall of bitcoin value is a lesson for the actual and potential Pakistani traders that all that glitters is not gold.

new world Bank loan of $825 million A

LAHORE

DR AftAB AfZAL

www.customstoday.com

ccording to newspaper reports, the World Bank has approved another loan of $825 million for Pakistan to improve public finance management and upgrade power transmission system. At least $425 million has been obtained on commercial terms and the money will be returnable in 21 years while $400 million will be given for Public Finance Management. The new package of loan indicates the country has been fully dependent on external loan programmes and the policymakers are accepting the loans as reward rather than

punishment. The speed with which the burden of loan is growing will definitely have adverse effects on the country’s economy. What the leadership of today is sowing will be reaped by the coming generations. There is no doubt the electricity transmission is not only outdated, but has also started crumbling and is causing billions of rupees line losses every year. The system is a blessing for corrupt elements that hide their wrongdoings under the garb of line losses. However, hardly 65 percent of the budget allocated for a project is used in this country as 35 percent goes into the pockets of every Tom, Dick and Harry in the official hierarchy.

The country is in the grip of a vicious circle of corruption and loans are adding liabilities of the general public rather than brining any good to their lives. The National Assembly and Senate are in operational mode but the matters of loan had never been discussed in the two heights forums of the country. Once the government forms blue print of a project, it must be discussed in the National Assembly and approval must be sought from the public representatives. The new loan has been obtained on the ground that it will be used to resolve the issue of gap between electricity demand and supply, as the generation capacity of the country will cross 30,000

megawatt during the next Pive years. The government is considering taking a total of $36 billion loan to expand the transmission system. Under the same head, Pakistan has already availed another $800 million loan from the Asian Development Bank but delays in the execution of the project ruined the efPicacy of the whole project. The government has obtained $400 million loan to improve Public Finance Management system, and it cover health and education sectors. The administrative management and Pinance are the two areas responsible for giving the direction of the economy and Pinancial stability. The government is simply a failure on the two accounts.

www.customsbulletin.com

Rs3.96b approved for completion of development schemes in Punjab ISLAMABAD: Punjab Department for Planning and Development has approved funds worth Rs3.96 billion, for completion of development schemes in various parts of the province. The schemes include road construction in Gujranwala district, Sialkot, Sargodha and Khushab, Radio Pakistan reported.

Valuation of printing inks & digital printing inkjet revised

Tuesday January 2, 2018

National

court extends remand of suspect in smuggle foreign currency case

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Directorate General of Customs Valuation has revised the customs value of Printing Inks and Digital Printing Inkjet Inks through Valuation Ruling No 1237/2017 under Section 25A of the Customs Act, 1969. Earlier the customs values of the Digital Printing Inkjet Inks And Printing Inks were determined vide Valuation Ruling No. 403/2011 dated 2911-2011 and Valuation Ruling No. 854/2016 dated 17-05-2016 read with Order-in-Revision No. 232/2016 dated 1608-2016. It has been brought to the notice of this Directorate General of Customs Valuation that the Valuation Ruling No. 854/2016 dated 17.05.2016 read with Order-in-Revision No.232/2016 dated 16.08.2016 for printing ink is being applied on the clearance of Digital Printing Inkjet Inks whereas there is a specific Valuation Ruling bearing No. 403/2011 dated 29.11.2011 for Digital Printing Inkjet Inks.

KARACHI

M B RAnA

www.customsbulletin.com

ustoms Taxation and AntiSmuggling Court Judge Syed Faiz Rasool Rashdi has extended physical remand of a suspect, Abdul Haseeb, and sent him back to the customs department. The suspect was booked for attempting to smuggle $20,000 from Karachi to Dubai by Flydubai Flight no FZ-334. During the hearing, the investigation ofPicer produced the suspect before the court and informed that a team of the customs ofPicials intercepted Abdul Haseeb at Jinnah International Airport Karachi and recovered $20,000 from his possession. The investigation ofPicer further submitted that the accused was trying to smuggle foreign currency from Karachi to Dubai by Flydubai Plight no FZ-334 and after formalities, the customs authorities seized. He argued that prosecution needs further investigation from the suspect to make arrests of the suspects involved in this case. Therefore, the court may send back him to

the customs department on physical remand. After the hearing, customs court judge sent back him to customs department on physical remand and directed investigation ofPicer to produce him on next date of

hearing along with progress report. According to the prosecution, case was registered complainant by Muhammad Wasif Arshad Preventive Officer, Customs House Karachi for violation of under section 2 (s)

section 139 of the Customs Act, 1969 punishable under clauses (8) of section 156 (i) ibid read with notification of state bank of Pakistan no F.E 1/2015-5B dated 01/06/2015.

iHc reserves verdict of matter filed against AtiR Moreover, the Valuation Ruling of Digital Printing Inkjet Inks is very old and needs to be revised in accordance with the trend of values in the international markets, besides printing inks values in the international market have also appreciated. Keeping in view the prevailing prices of the subject goods, this Directorate General initiated an exercise for the determination of the Customs Values of the Digital Printing Inkjet Inks and Printing Inks in terms of Section 25-A of the Customs Act, 1969. Stakeholders’participation in determination of Customs values: Meeting with stakeholders including importers, local manufacturers and representatives from field formations was held on 06.12.2017, to discuss the current international prices of Digital Printing Inkjet Inks and Printing Inks.

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Islamabad High Court (IHC) on Saturday reserved a decision on a customs matter Piled by M/s Dancom Pakistan against Appellate Tribunal Inland Revenue (ATIR) during third week of December. Justice Athar Minallah and Justice Miangul Hassan heard the case and reserved decision as the parties concluded arguments and submitted relating record. M/s Dancom Pakistan had filed the case challenging an announcement made by the ATIR through which it had sustained a decision announced by the department’s adjudication pertaining to the show cause notice issued to it for recovery of outstanding tax. Through both the references, M/s

Dancom Pakistan had named chief commissioner Inland Revenue, LTU, assistant commissioner Inland Revenue Withholding, LTU, commissioner Inland Revenue (Appeals), LTU, and Federation of Pakistan

through the chairman of Federal Board of Revenue (FBR) as respondents in the case. Show-cause notices had been issued for the tax year 2016 in head of income tax under sections of Income Tax Ordinance, 2001. M/s

Dancom Pakistan had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard. The petitioner had prayed the court operation of the impugned notices issued by the tax authority may kindly be suspended till the decisions of appeal pending before the LTU. Another bench of IHC comprising of Justice Shaukat Aziz and Justice Mohsin Akhtar dated in ofPice hearing on M/S Pakhtoon’s customs cases and directed parties to provide record pertaining to the case prior to next date of hearing. The appellant had Piled the case against Model Collectorate of Customs, Islamabad. The bench also directed FBR Pield ofPice, MCC and the appellant to submit record on the case in order to assist the court. Justice Aziz’s single bench also heard another customs case Piled against MCC by Ehsan ur Rehman.

www.customsbulletin.com

Customs Tribunal adjourns hearing of 23 cases Tuesday January 2, 2018

National Second Secretary (iR o Hassan relinquishes charge

LAHORE: The Customs Appellate Tribunal (single & double) bench heard 23 cases and adjourned all the cases to different dates for January 2018. According to the details, division bench-II comprising Member Judicial Omer Arshed Hakeem, Member Technical Imran Tariq, heard cases of Summar Mehmood versus Customs Lahore, Ishtiaq Ahmed versus Directorate of Intelligence and Investigation Multan and adjourned both till eight January, the appeal of Al- Rehman Febrics versus Directorate of Intelligence and Investigation Faisalabad.

three customs oﬃcers of BS-18 nominated for 25th McMc

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

assan Bin Izhar, a BS-18 officer of Inland Revenue Service, has relinquished the charge as Second Secretary (IR Operations Wing). The officer, in pursuance of Board’s Notification No.3215-IR-II/2017 dated 13-12-2017, relinquished the charge of the post of Second Secretary (IR Operations Wing), Federal Board of Revenue (HQ), Islamabad, with effect from December 18. Meanwhile The Sindh High Court (SHC) has issued notices to the customs officials and the deputy attorney general, directing them to file their respective para wise comments on a constitutional petition filed by M/s Ahmed Hassan Textile Mill (Private) Limited against demand of Rs 15,550,537 being 10 percent customs duty and 17 percent sale tax on import of natural gas power generation unit. A two-member bench, comprising Justice Munib Akhtar and Justice Omer Sial, was hearing the petition.

Shehzad joins fBR on repatriation from pRA hehzad Mehmood, a BS-18 officer of Inland Revenue Service, has joined the Federal Board of Revenue (HQ) on repatriation from Punjab Revenue Authority (PRA). On repatriation from PRA, Government of Punjab, Lahore vide letter No.PRA/-3268/2017/823 dated 13-12-2017, the officer joined FBR (HQ) on December 18 and actualized his promotion to BS19 in pursuance of Board’s Notification No.2205-IR-I/2017 dated 17.08.2017 on the same date. Meanwhile, Muhammad Zafar Haider Jappa, a BS18 officer of Inland Revenue Service, has relinquished the charge as Secretary (OPS). The officer, in pursuance of Board’s Notification No.3212-IRII/2017 dated 13-12-2017. –CB Report

he Establishment Division has nominated three Pakistan Customs Service officers of BS-18 for 25th Mid Career Management Course (MCMC) at the National Institutes of Managements in Karachi, Lahore, Peshawar, Quetta and Islamabad. These ofPicers, including Imran Razzaq, Deputy Collector, Model Customs Collectorate of Appraisement (West), Karachi; Saad Ata Rabbani, Deputy Director, Directorate of Intelligence & Investigation, Karachi and Ahmad Affan, Second Secretary, FBR (HQ), Islamabad, have been selected for the 25th MCMC commencing from January 1, 2018 to April 6, 2018.

customs seizes 3836 bottles of alcohol from Allama iqbal Airport in 2017 T

LAHORE

M iMRAn MeHAR

www.customsbulletin.com

he Customs team deputed at Allama Iqbal International Airport conPiscated 3836 alcohol bottles from passengers travelling via different Plights during raids from January 2017 to December 2017. Sources told Customs Today that the customs team conducted operations in different Plights from different countries. Flights were coming from Dubai to Lahore, Turkey to Lahore, Jeddah to Lahore and Muscat to Lahore. Customs team took action in Pakistan International Airlines (PIA) Plights, Turkish Airways Plight, Gulf Air. During actions in these Plights customs staff recovered 3836 bottles of alcohol. Customs allowed almost all passengers to go after conPiscation of

alcohol bottles from their possession. Customs has also conPiscated 23 LED of 32 and 46 and 43 inches from passengers. Dozens of wire-

less sets and were also recovered from Lahore airport. Customs team has started strict checking of the luggage of the pas-

sengers specially coming from European countries. Smuggling attempts are being foiled by the customs authorities.

www.customsbulletin.com

Sugar mills owners to buy sugarcane at 180 per maund KHANEWAL: Provincial Minister for Irrigation Naeem Khan Bhabha said that sugar mills would buy sugarcane from growers at the rate of Rs 180 per maund and nobody would be allowed to exploit farmers. Addressing a meeting of sugar mills, district administration and farmers’ organisations here, he constituted a three-member team to review process of purchasing sugarcane from farmers. He said the purchase of sugarcane would continue in accordance with the given quota to each district of Southern Punjab.

1138 corruption references being trialed in courts countrywide: nAB ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

high level meeting at National Accountability Bureau (NAB) was informed that around 1,138 corruption references are being proceeded in different accountability courts in the country. Of the total, 347 corruption references from Lahore Bureau are being trialed, 275 references from NAB Karachi, 185 references from NAB Khyber Pakhtunkhwa (KPK), 97 from Balochistan, 171 from NAB Rawalpindi, 34 references from NAB Multan and 29 corruption references were being proceeded from NAB Sukkur Bureau. In a meeting held here on Tuesday to review

progress of NAB, Chairman NAB, Justice (Retd) Javed Iqbal, who was chairing the meeting, directed for early completion of 499 inquiries and 287 investigations pending in various Regional Bureaus. He asked that why these have not been finalized within stipulated time period of 10 months. These investigations/inquiries, after already set process, are submitted in relevant accountability courts in shape of corruption references. The Chairman further directed that Accountability Courts should be requested for early hearing of the corruption cases so that a hefty misappropriated amount of Rs. 900 billion from corrupt elements could be recovered and credited to national kitty, besides ensuring punishment to the corrupts.

National

well-being of people of gwadar is top priority in cpec: Ahsan iqbal

enhanced power generation from cpec to add 2pc points to gDp growth ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he enhanced power generation capacity resulting from China Pakistan Economic Corridor (CPEC) projects is expected to add two (2) percentage points to Gross Domestic Product (GDP) growth in medium to long term. The overall energy projects aim to add 17,045 Megawatts (MW) to mitigate chronic electricity shortfall and provide a reliable support for domestic economic activities and exports. Sources at Planning, Development and Reforms Division on Tuesday said out of US$ 47 billion CPEC portfolio, the bulk (around US$ 35 billion) is for energy projects whereas US $ 12 billion is for roads and other infrastructure projects. The CPEC transport infrastructure projects (roads, railways, port facility upgrade) would allow easier and low cost access to domestic and overseas markets, promoting inter regional and international merchandise trade. The sources said services exports would also benefit from increased trade traﬃc from China. Moreover, the sources said establishment of Special Economic Zones (SEZ) alongside CPEC routes will facilitate domestic and foreign investment.

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

inister for Interior and Planning, Development and Reform, Ahsan Iqbal has said well-being of people of Gwadar was the top priority in China Pakistan Economic Corridor (CPEC) and instructed for immediate resolution of water and power supply issues in the port city. He expressed these views while presiding a high level meeting on Gwadar projects here at Planning Commission. The meeting was attended by Secretary Planning Shoaib Ahmad Saddiqui, Chief Secretary Balochistan Aurangzeb Haque, senior ofPicials from ministries and government of Balochistan, Chinese Embassy. OfPicials of Gwadar Development Authority and Ministry of Energy briefed the participants on Gwadar Master City Plan, Power projects and water supply issues of Gwadar. Federal Minister Ahsan Iqbal said the master plan for Gwadar city should be a comprehensive document, including all aspects of a modern port city and in line with requirements of CPEC.

Tuesday Janaury 2, 2018

He instructed that the plan should ensure provision of an integrated rail, road and air transport infrastructure system. Minister further highlighted that the Gwadar Master City Plan must cover the present and future maritime trends and link of Gwadar port with other regional ports. “To make Gwadar, a competitive port, the plan should come up with a complete solution,” he remarked while commenting on the briePing

by the GDA. He also instructed to induct a senior and a qualiPied expert on regional and urban planning in the review committee made for this project. Minister also directed that mushroom growth of private sector residential areas should be discouraged prior to completion of the Gwadar City Master Plan. Gwadar Smart Port City Master Plan, a one year project at the cost of US$4 million (Chinese Grant) was launched in August 2017.

food group imports increase by 16.08% in 5 months

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ood group imports into the country during first five months of current financial year increased by 16.08 percent as compared the corresponding period of last year. During the period from July-November, 2017-18 food commodities worth US$ 2.718 billion imported into the country as compared the imports of US$ 2.341 billion of same period last year, according the data of Pakistan Bureau of Statistics. During the period under review, about 38,231 metric tons of milk cream

and milk for infant food valuing US$ 107.846 million imported which was up by 4.95 percent as compared the imports of 34,951

metric tons worth of US$ 102.754 million of same period last year. Country consumed 68,965 metric tons of dry fruits and nuts cost-

ing US$ 78.920 million in Pirst Pive months of current Pinancial year, which was recorded at 56,605 metric tons worth of US$ 96.171 million of same period of last year. Meanwhile, US$ 230.917 million on the imports of about 80,597 metric tons of tea as compared the imports of 84,324 metric tons valuing US$ 208.383 million, showing an increase of 10.81 percent. he spices imports into the country also grew by 26.74 percent as about 67,115 metric tons of spices valuing US$ 66.667 million imported as compared the imports of 51,443 metric tons worth US$ 52.601 million of same period last year.

www.customsbulletin.com

World Customs

TRAIN to fund 25% of Duterte infra program

MANILA: The recently enacted tax reform bill is seen to fund about 25 percent of the P8.4-trillion “Build Build Build” program of the Duterte administration, the Department of Finance (DOF) said over the weekend. In a statement, Finance Secretary Carlos Dominguez said the incremental revenue to be generated by Republic Act 10963 or the Tax Reform for Acceleration and Inclusion Act (TRAIN) would help provide the initial capital for the government’s massive infrastructure modernization program. “This is our capital. We ﬁgure we can fund about 25 percent of the program and borrow the rest,” he said.

Tuesday January 2, 2018

federal agency seizes marijauna chinese customs seizes $13m of smuggled fuel worth about $238,000 BEIJING

cuStoMS BuLLetin RepoRt www.customsbulletin.com

NEW YORK

cuStoMS BuLLetin RepoRt

www.customsbulletin.com

ustoms and Border Protection ofPicers in Douglas seized approximately $238,000 worth of marijuana from being smuggled into the country on Monday. A 35-year-old man from Hereford, Arizona was stopped at the Raul Hector Castro Port of Entry in Douglas on Monday night after ofPicers were alerted by a border protection narcotics canine, according to the agency press release. After further inspection ofPicers detected approximately 257 pounds of marijuana within the Chevy Blazer, which totaled more than $128,000. The drugs were hidden under the hood and side doors of the vehicle. The man was taken into custody in connection with narcotics smuggling and sent to the Immigration and Customs Enforce-

Saudi Arabia, uAe to roll out VAt in 2018 audi Arabia and the United Arab Emirates, which have long lured foreign workers with the promise of a tax-free lifestyle, plan to impose a 5 percent tax next year on most goods and services to boost revenue after oil prices collapsed three years ago. The value-added tax, or VAT, will apply to a range of items like food, clothes, electronics and gasoline, as well as phone, water and electricity bills, and hotel reservations. Elda Ngombe, a 23-year-old college graduate who’s looking for a job in Dubai, said there’s one specific purchase she’s planning before next year’s price hike: “Makeup, because I can’t live without makeup.” “I am scared because everything is actually expensive already in Dubai. The fact that it’s actually adding 5 percent is crazy,” she said. –CB Report

ment’s Homeland Security Investigations. The border protection agency seized another 220 pounds of marijuana from a Nissan Crossover after officers were alerted by a narcotics canine. The drugs totaled $110,000 and

were hidden throughout the vehicle, the release said. A 34-year-old Douglas resident was arrested in connection with the seizure and turned over to the Immigration and Customs Enforcement’s Homeland Security Investigations.

Russian court passes life sentence for drug smuggling for the first time

or the Pirst time in the history of Russia, the court sentenced a person involved in a drug smuggling case to life imprisonment. The convicted man is a Tajik citizen named Sherali Tabarov. He was found guilty of Creating a Criminal Community and Smuggling Narcotic Drugs on an especially large scale (part 4 of Art. 229.1), Kommersant reported. According to the news report, the Moscow Regional Court

considered the case. Apart from Tabarov, over 14 other citizens of Tajikistan are involved in the case. According to the investigation, Tabarov created a criminal community that managed to import and distribute several hundred kilograms of heroin throughout Russian Federation. The group operated between 2012 and 2015. It is noteworthy that Tabarov has had a previous conviction for the same crime. –CB Report

hinese customs in Nanjing city has seized 12,000 tonnes of smuggled fuel worth 85 million yuan ($12.98 million), state news agency Xinhua reported. The seizure is a result of months of investigations in coastal provinces of Jiangsu, Fujian and Zhejiang province. The authorities have also arrested 17 suspects. Smuggling was carried out outside the mouth of Yangtze River and at sea, through ship-to-ship loadings with foreign vessels, said Xinhua, which cites state-run Legal Daily as saying. The report did not specify which rePined products were smuggled. Meanwhile, China Ministry for Environmental Protection (MEP) said it had completed coal to gas and coal to electricity projects for 3.9 million households or 25,220

villages exceeding a target of 3.1 million houses for 2017 in northern Chinese regions. The project has left some rural villages in the cold, however, the MEP said late on Sunday, as local ofPicials were unable to Pinish projects before the winter heating period began. As many as 3,704 villages had not completed switching residents from coal stoves to either burning natural gas or to electricity as of Dec. 24. That accounts for 16 percent of the total amount of the project, the MEP data showed. As a result, these villages need to keep burning coal, the MEP said. China began an ambitious program earlier this year under which millions of households and some industrial users are switching. But the program has led to widespread shortages of natural gas, sent LNG prices soaring and left some residents freezing in their homes and factories shuttered. The statement from the MEP was the Pirst acknowledgement from the central government of the consequences of the move.

Moroccan imports more valued

MSTERDAM: The Moroccan import season is, once again, in full swing. Different fruit and vegetable varieties are being imported by the Netherlands, and then distributed throughout Europe. Dutch importer, Wilko van der Zwaard, owner of Wilko Fruit, which is based in Breda, has been involved in Moroccan imports for many years. He sees the Moroccan fresh market growing rapidly. It is going well with the Moroccan fruit and vegetable import”, says Wilko. This 53-year old business owner has been importing fresh produce from Morocco since he was 17. Ac-

cording to him, for this company, which is located in the Dutch province of Brabant, December is traditionally the month for Moroccan clementines. “The Berkane region in Morocco is well known for having the best clementines. They are a nice dark red colour with good brix levels and juice content. A few weeks after the clementines come onto the market, we start with the Washington Sanguine oranges. In my opinion, this is the best variety of juicing orange. The Washington Sanguine contains a lot of juice and is very sweet-tasting. –CB Report

philippines seen to import 1.3 MMt more rice

MANILA

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Philippines is expected to import more rice next year as local production will still not be enough to cover the national demand, the United States Department of Agriculture (USDA) said. In the latest report of the USDA

Foreign Agricultural Service (FAS), the Philippines was seen to import 1.3 million metric tons (MT) of rice next year, lower than the original import target of 1.7 million MT. This year’s rice import level, however, is 38 percent higher than the 800,000 MT of rice that entered the country in 2016. “Increased output is expected as a result of favorable weather conditions and in-

creased use of high yielding varieties. There were noticeably fewer intense typhoons that passed through major rice production areas compared to previous years,” USDA said. The lower importation is expected as production of milled rice next year is seen increasing two percent to 11.97 million MT from 11.68 million MT. This will be complemented by yield slightly improv-

ing to 3.95 MT per hectare. Local corn production is seen to slightly improve by 1.2 percent to 8.2 million MT. According to the Philippine Statistics Authority (PSA), the country’s import dependency ratio (IDR) abruptly decreased to 4.99 percent last year from 11.07 percent in 2015. Rice imports fell 54.71 percent to $278.87 million in 2016.

www.customsbulletin.com

USA to suspend preferential tariff treatment of Ukrainian imports WASHINGTON: Putting on hold its preferential tariff treatment of imports from Ukraine starting from January 2018, in response to the country’s failure to ensure adequate protection and enforcement of U.S. intellectual property rights, Hromadske TV reports, citing the BBC Ukrainian service. It was as far back as April that the Office of the United States Trade Representative (USTR) released its 2017 review of the state of IP protection and enforcement in U.S. trading partners around the world. Again, it placed Ukraine on its Priority Watch List, alongside such countries as Russia, China, India, Venezuela, Thailand, Algeria, Chile, Kuwait, and Indonesia.

South Africa trade surplus soars to 13 billion rand outh Africa’s trade surplus soared to 13.02 billion rand in November, its highest in a one and a half years as exports of mineral and chemical products as well as commodities and vehicles grew briskly while imports were subdued. South Africa’s trade surplus soared to 13.02 billion rand ($1.06 billion) in November, its highest in a one and a half years as exports of mineral and chemical products as well as commodities and vehicles grew briskly while imports were subdued. Meanwhile, During a recent meeting for tax administrators in Kigali, the Rwanda Revenue Authority (RRA) said it had missed its tax revenue target by four per cent. It also missed its non-tax revenue target. RRA’s tax revenue target was Rwf333.4 billion ($153 million), but only Rwf323.3 billion ($148.7 million) was collected between July and October. According

Ports & Shipping

iran, Qatar target maritime trade ties

thai nov exports up 13.4pc y/y beat forecast

www.customsbulletin.com

states—led by Saudi Arabia— abruptly severed diplomatic relations with Doha early June and imposed a blockade on the Persian Gulf country, accusing it of supporting terrorist groups. According to Adnan Musapour, a member of the Export Committee at Iran Chamber of Commerce, Industries and Mining, most Iranian shipping lines have now switched their transport services to Qatar, instead of the UAE and Oman. Torang Darya Shipping Line,

hailand’s customs-cleared annual exports rose for a ninth straight month in and handily beating expectations, as demand from major markets remained strong. Exports, a key driver of Thailand’s growth, increased 13.4 percent in November from a year earlier after rising 13.1 percent in October, commerce ministry data showed on Thursday. That beat the median forecast of a 6.4 percent rise from economists polled by Reuters. he exports were led by rubber, which surged 61 percent, while rice exports rose 50 percent. Imports in November increased 13.7 percent from a year earlier, also more than the forecast of a 12.8 percent rise. That resulted in a trade surplus of $1.76 billion in November, far above a forecast of $0.72 billion surplus. In January-November, exports grew 10 percent, while imports rose 14.5 percent in the same period, Pimchanok Vonkhorporn, an official at the commerce ministry, said at a briefing. –CB Report

DURRES

cuStoMS BuLLetin RepoRt

atar has stressed the importance of facilitating maritime trade with Iran. This was underlined by Qatari Minister of Transportation and Communications Jassim Saif Ahmed Al Sulaiti in a meeting with CEO of Ports and Maritime Organization of Iran Mohammad Rastad in Doha on Monday, the Ministry of Roads and Urban Development’s news portal reported. The two sides scrutinized ways of eliminating obstacles to exports and transit from Iran’s southern ports to Qatar and of increasing private sector investments from both countries in the Pields of logistics and maritime transportation. A delegation of Iranian ofPicials, public and private shipping companies as well as maritime players are accompanying Rastad in his visit to Doha. The role of cargo movement through sea route has increased in Qatar after a number of Arab

Tuesday Tuesday 2, 2018

the biggest private shipping company in Iran, has announced that it intends to expand its business in Qatar. “Before the siege (imposed on Qatar), we did not have any desire (to expand) because Qatar was importing most of its requirement from some of its neighboring countries. But right now, we have the desire and the plan for import and export from Qatar. We want to extend our business in Qatar,” Amir Khani from TDS Line said.

Azerbaijan, Russia introduces new cruise to Richard Tusabe, RRA’s Commissioner-General the shortfall in revenues was as a result of fraud perpetuated using false invoices to claim VAT. For the Kenya Revenue Authority (KRA), the target was to collect Ksh435,424 million ($4.2 million), but only Ksh420,707 million ($4 million) was realised. While taxes from petroleum raked in Kshs45,517 million ($446 million), which is above the targeted Ksh37,609 million ($368.8 million), low collections from international trade revenue, domestic revenue, fees and licences hindered KRA from meeting its target. KRA faces a challenge of under declaration of import values at the Mombasa Port leading to loss of millions of dollars in taxes. –CB Report

MOSCOW

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he agreement was signed during the visit of the Russian delegation headed by Konstantin Anisimov to Baku. The agreement provides for joint activities on study and development of optimal routes for cruise passenger vessels, such as ports of the Black Sea – inland waterways of the Russian Federation – Astrakhan – ports of the Caspian Sea; Moscow-Baku; Astrakhan – Makhachkala – Baku; Baku-Anzali- Nowshahr -Turkmenbashi-Aktau-Astrakhan and others. Shipping companies of the two countries will conduct preparation of joint investment projects, including joint exploitation of the “Peter the Great” cruise passenger liner and the construction of new cruise vessels for the development of sea

tourism along the planned routes. ACSC and MRSC will work together to develop the coastal infrastructure to organize cruise tours – including berths, border posts, customs and sanitary control, bunkering and supply, and to optimize port

charges and share experience of mutually benePicial cooperation. In the course of the meeting with the leadership of the Shipping Company Mr. Anisimov noted the great opportunities of tourism of Baku. From this point of view, the organi-

zation of sea cruises will attract tourists to Azerbaijan, he highlighted. This project will attract tourists from the EU countries, USA, Australia, China and other regions of the world. According to the signed memorandum, by the end of 2019, the sea tours of the Russian cruise liner Peter the Great will start in Baku. Initially the tours will be carried out on the route AstrakhanBaku, but from 2020 it will pass through other Russian cities. The construction of the Pirst cruise liner in the Caspian Sea – “Peter the Great” is underway at the Russian shipyard “Lotos” in Astrakhan. Appropriate facilities will be set on board: restaurants, spa, gyms, bars, sun decks with a swimming pool and Jacuzzi, which will be covered by tent in bad weather conditions. Generally, the liner in terms of standards of its equipment and comfort will correspond to a Pive-star hotel.

www.customsbulletin.com

KP NAB opens probe into medicine funds scam PESHAWAR: The Khyber-Pakhtunkhwa chapter of National Accountability Bureau has opened an inquiry against officials of the Office of the Agency Surgeon, North Waziristan Agency for bungling Rs22.7 million worth of funds meant for purchase and free distribution of medicines in government hospitals. Regional board of National Accountability Bureau (NAB) Khyber-Pakhtunkhwa (K-P) has authorised inquiries against the officials of agency surgeon of North Waziristan Agency, a statement of the corruption watchdog said.

Tuesday December 2, 2018

Business

Miftah plans significant reforms in five months ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ew Pinance ministry chief Miftah Ismail said he plans signiPicant tax reforms in the Pive months before the government’s term ends ahead of a 2018 election, and touted a policy of greater currency Plexibility. Pakistan’s government has in recent months devalued the rupee, imposed tariffs on imported goods and sought to boost exports to reduce growing balance of payments pressures fuelling concern about health of the nearly $300 billion economy. The country this month borrowed $2.5 billion from interna-

1st ever mechanical cotton picking at ccRi MULTAN

cuStoMS BuLLetin RepoRt

tional markets via a Sukuk and eurobond offers that were vastly oversubscribed and fetched lower-thanexpected rates. Ismail, a wealthy businessman and former International Monetary Fund (IMF) econo-

pak-Afghan transit trade decreases to $1.6 billion in 2017

www.customsbulletin.com

irst ever in the history of the country, the cotton was picked mechanically at Central Cotton Research Institute (CCRI). The machine will pick cotton upto to 15 acre in a day for which dozens of labourers were engaged in the past. Briefing a group of journalists, Director CCRI Dr Zahid Mehmood said that shortage of female cotton pickers was creating diﬃculties for the growers adding that the latest technology will help them getting out of the problem in days to come.

mist, was on Wednesday appointed as Pinance adviser to Prime Minister Shahid Khaqan Abbasi in a role that makes him de facto Pinance minister. Ismail told Reuters in an interview he plans tax reforms to focus

on widening the tax base, simplifying tax structures, and slashing personal tax rates to encourage more people to Pile returns. “We have to reduce rates and the prime minister is very eager to especially reduce rates on individuals,” Ismail said at his home in Islamabad, referring to his close ally Abbasi. Tax rates on individuals vary in Pakistan, but can be as high as 30 percent for salaried individuals and 35 percent for non-salaried individuals. “(Abbasi) wants to bring it to 15 percent or so,” Ismail said. Pakistan has a very narrow tax base. Successive governments have promised to rein in tax evaders and boost revenues but have faced Pierce resistance to change, including from the many politicians and businessmen believed to be among those dodging their taxes.

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ak-Afghan transit trade volume decreased to the tune of $1.6 billion in 2017 as transit trade from India with Afghan traders through Chahbahar port increased. Pakistan Afghanistan Joint Chamber of Commerce & Industry’s President, Junaid Esmail Makda, said bottlenecks and problems are increasing in respect to Pak-Afghan bilateral trade. Traders from Afghanistan and Pakistan are

also ambiguous and unaware about the facilities of transit trade from Chaman and Torkham borders under the China-Pakistan Economic Corridor project. It is pertinent to note that during 2009 to 2012 Pak-Afghan Bilateral Trade was decreased by 46 percent however after Agreement of AfghanPak Transit Trade in June 2012 and implementation thereof in mid of 2014-15 Bilateral trade was increased by 65 percent to tune of $2.5 billion. Thereafter due to political estrangement between two countries, India took advantage

while providing more facility to Afghan Traders and facilitating trade through Chabahar Port due to which Pak-Afghan Trade has declined sharply. PAJCCI President Junaid Makda claimed that provided trade and politics are dealt separately, Pak-Afghan Trade volume can be multiplied to $7.5 billion and employment opportunities can be created directly and indirectly for 100,000 Pakistanis. This enhancement in Pak-Afghan Trade will also support to bridge the trade dePicit because Pakistan and Afghanistan on 21st January.

industry hopes textile exports will jump to $13b FAISALABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

extile exports have been going up steadily since the start of the current fiscal year in a positive sign that raises expectations that full-year proceeds will touch $13 billion after a hiatus of two years. Textile shipments jumped 7.66% year-on-year to $5.51 billion in the first five months (July-November) of the current fiscal year, driven primarily by a surge in value-added textile exports. In a review of the industry’s performance in the outgoing year 2017, Pakistan Textile Exporters Association (PTEA) Chairman Shaiq Jawed said in a statement that textile shipments had been on an upsurge since the start of 2017-18 in July following a continued fall in the previous fiscal year. After hitting the peak at $13.73 billion in 2013-14, textile exports dropped to $13.47 billion in 2014-15 and $12.44 billion in 2015-16. Afterwards, they inched up 0.04% at $12.45 billion in 201617, but were still lower by more than a billion dollars than the peak. Propped up by cash incentives under the prime minister’s trade package, textile exports took oﬀ, but challenges were still there that should be addressed to further ramp up growth, Jawed said.

govt took $36.8 billion foreign loans in last five years ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he federal government took $36.8 billion foreign loans during last five years to build country’s forex reserves and repay previous loans . Secretary Economic Affairs Division Arif Khan informed the National Assembly standing committee on finance and rev-

enue about foreign loaning and aids etc on Friday. He also briefed the Committee about the role of EAD. He said that federal government had taken $36.8 billion foreign loans in last five years. Giving details, Khan said that Pakistan had taken $7.2 billion loan from the commercial banks and $5.8 billion from the World Bank. Similarly, Pakistan borrowed $4.4 billion from the Asian Development Bank and is-

sued Sukuk and Euro bonds worth of $4.5 billion. However, the recently launched Sukuk and Euro bonds worth of $2.5 billion are not included in these loans . He further informed that Pakistan had also borrowed $6.6 billion from the International Monetary Fund during last five years. The National Assembly’s standing committee on finance and revenue, which met under the chairman-

ship of Qaiser Ahmad Sheikh, MNA, showed its displeasure on the absence of the finance minister, finance secretary and finance advisor. The acting chairman of Securities and Exchange Commission of Pakistan (SECP) briefed the Committee on insider trading in stock exchange. The Committee showed its displeasure on the performance of the SECP as not a single crimi-

nal case of insider trading against any Stock Exchange dealer has been filed by SECP in the Court of Law since 2015. The acting chairman of the SECP told the Committee that SECP has taken cognizance on the offence of insider trading and accordingly has filled 04 criminal complaints before the Court of Sessions. The SECP is investigating against 15-20 companies for inside trading.

www.customsbulletin.com

Iran Indonesia sign MoU on science technology TEHRAN: Iranian Mustafa prize and Indonesian Nahdlatul Ulama signed a memorandum of understanding to promote cultural, scientific and technological cooperation with the intention of developing the world of Islam. Chairman of the Executive Committee of Mustafa Prize Seyed Ali Omrani and the Secretary General of Nahdlatul Ulama Iqbal Sulam attended a meeting where they signed a memorandum of understanding to promote scientific and technological cooperation. This memorandum of understanding will serve as the beginning to activities carried out by Mustafa Prize in Indonesia with the intention of developing scientific and technological cooperation with the Indonesian community and Nahdlatul Ulama followers. The memo also serves to commence the exchange of experience in attracting public financial support and active participation in scientific and technological activities.

pak businessmen invited to tap huge trade potential of nigeria

Tuesday January 2, 2018

Chambers

uniDo cleantech innovators awarded for their innovations

LAHORE

cuStoMS BuLLetin RepoRt www.customsbulletin.com

igh Commissioner of Nigeria Maj General (Retd) Ashimiyu Adebayo Olaniyi said that huge untapped potential of his country could be explored through joint ventures between the private sectors of the two countries. The Nigerian government would extend maximum cooperation to achieve the goal of economic prosperity, he added. Talking to LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid and Executive Committee Members here at Lahore Chamber of Commerce and Industry, he said that low volume of the bilateral trade demands extraordinary ef-

forts from the businessmen of the two countries. The Nigerian HC invited the Pakistani businessmen to enter into joint ventures with their Nigerian counterparts in the fields of agriculture, textile and manufacturing. He said that easing of visa process between the two countries could increase the bilateral trade in shortest possible time. “Nigeria is one of the major member states of African Union. It is classified as an emerging market rapidly approaching to middle income status. However, this relationship has not been translated into tangible economic ties because Nigeria unfortunately does not figure prominently among the trading partners of Pakistan,” he added. He mentioned that Nigeria and Pakistan shared a lot of commonalities, and the two countries enjoyed unique geographical locations, which were strategic in their respective continents.

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he United Nations Industrial Development Organization’s (UNIDO) Global Cleantech Innovation Program (GCIP) organized an impressive awards distribution ceremony in Islamabad to reward the most promising Pakistani innovators in the Pield of clean technologies. Syed Abu Ahmed Akif, Federal Secretary for Climate was the chief guest at the occasion. He stressed upon the importance of clean technology innovations in mitigating the harmful effects caused by climate change. While reiterating his Ministry’s continued support to this program, he appreciated the work of UNIDO, GEF and its local partners in organizing the GCIP, especially the annual competition, as it fosters green entrepreneurship and supports marketable solutions that address the most pressing global environmental challenges. Sheikh Amir Waheed, of Islamabad Chamber of Commerce and Industry strongly encouraged the local and international investors to

become frontrunners in clean technology investments in Pakistan. He emphasized that investors should partner with innovators in commercialization of their brilliant ideas and facilitate them in introducing the innovative products in the market. This year, GCIP granted 5 awards under different categories; the Pirst prize went to a team “Modulus Tech” who innovated a new design of low cost, energy efPicient houses, the runner up prize was given to team “Biotech” who had made a dual function solar system

for rural area which can run water pumps and Plour mills. The most promising women led team award was given by Islamabad Chamber of Commerce and Industry to “Aerosync” who came up with an innovative solar power cart for roadside street vendors. This year two new prizes were introduced which are called ‘Industry Challenge Award’ the Pirst one was solution for steel industry which was given to team Bitsym Bitpredict, who came up with industrial process fault detection information system, the second

issue of RD near to be resolved: Lcci chief LAHORE

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he LCCI president Malik Tahir Javaid has said that issue of Regulatory Duty on imports is near to be resolved as high government funcionaries have given assurance in this regard. “I had important meetings with Prime Minister Shahid Khaqan Abbasi, PM Assitant on Revenue Haroon Akhter, Federal Minister for Industries & Production Ghulam Murtaza Khan Jatoi, Chairman NA Standing Committee on Finance, Revenue & Economic Affairs Qaiser Ahmed Sheikh, Chairman FBR & Member Customs FBR Zahid Khokhar and demanded total withdrawl of Regulatory Duty on imports. Good news is that they had principally agreed to move in favor

of business community”, the LCCI president told the delegation of businessmen here at the Lahore Chamber of Commerce & Industry. Malik Tahir Javaid said that the Lahore Chamber of Commerce & Industry is active from the very Pirst day on Regulatory Duty and meeting the people sitting on the helm of affairs and informing them that RD on various essential items including raw materials would harm the economy which already under pressure due to rupee devaluation, heavy borrowing, high trade dePicit and poor ranking in ease of doing business. He said that new Regulatory Duty regime would be hardly doing any service to the economy. Federal Board of Revenue should totally withdraw the recently imposed Regulatory Duty otherwise its destruction would be beyoned the imaginations. He said that since various imported raw materials are being used in the

local industries for manufacturing and exporting of goods therefore Regulatory Duty on these important inputs would add to the miseries of exportoriented industries. Resultantly, he said, exports would be continued to sink. While sharing his point of view with the Parliamentarians, the LCCI president said that business community is already suffering because of undue delay in payment of refunds and high cost of doing business and cannot afford to bear heavy burden of Regulatory Duty that is imposed without keeping in view the ground realities. The LCCI President said that principally Regulatory Duty is imposed on such products where local industry needs protection. The LCCI understands that protection of local industry is important for any state as it provides employment opportunities and contribute sizeable amount of revenue to national exchequer.

such prize was given to Crean who has technology for utilizing and regenerating the old batteries. The UNIDO Country Representative, Ms. Nadia Aftab, shared UNIDO’s vision on energy and environment in promoting clean technologies while pinpointing UNIDO’s full commitment to further strengthen the cooperation with the Ministry of Industries and Production. The GCIP Project Manager from UNIDO HQ Mr. Alois Mhlanga appreciated the achievements of GCIP in Pakistan.

Scci for setting up ‘Support industry’ resident Sialkot Chamber of Commerce and Industry (SCCI) Zahid Latif Malik has stressed the need of setting up “Support industry” to facilitate industrial sector of the country. Talking to media here on Sunday he said that export sector of the country heavily relies on import of raw materials especially from China for further value addition and re-exports adding that this practice adds to the cost of doing business and was major contributor towards increasing import bill of the counrty. He said that in order to cope with future challenges of industrial sector government should encourage the businessmen and investors to invest in support industry which would ultimately lead to import substitution of especially raw material utilized by local industry. –CB Report

www.customsbulletin.com

Adjudication-II recovers Rs2m from M/s Madiha & Sons KARACHI: Customs Adjudication-II Tahir Qureshi showed outstanding performance by taking actions against tax defaulters and issuing notices during of December. Source told Customs Today that the Customs Adjudication-II served a ﬁnal notice on a defaulter company named M/s J K Enterprises and recovered Rs 2 million from M/s Madiha and Sons Karachi. M/s J. K. Enterprises was involved in tax evasion.

Tuesday, January 2, 2018

CUSTOMS BULLETIN

customs export retrieves evaded duties after serving notices on defaulter companies KARACHI wAQAR AHMeD AnSARi www.customsbulletin.com

he Customs Export has recovered evaded amount of taxes and duties of Rs6.12million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Raheem Unique Slide availed undue benePits and concessions by importing different consignments by misusing the SRO 562 through Examiner Raheel Waris. Sources told CT that the company was allegedly involved in tax evasion of Rs3.12million. After detecting the tax evasion, the Customs Export issued it with a Pinal notice on December 4, 2017 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s Raheem Unique Slide deposited the evaded amount in the ofPicial account of the Customs Export on December 26. On the other hand, the management of the M/s Urooj Boutique Karachi also cleared Rs3million of taxes and duties. Sources told the correspondent that M/s Urooj Boutique Karachi also availed undue benePits

and concessions and avoided paying taxes according to the customs by-

laws. The Customs Export authorities served on it a Pinal notice on De-

cember, 2017. After receiving the notice, the management of the M/s

Urooj Boutique Karachi deposited the evaded amount of taxes.

federal cabinet exempts from 2pc extra St on lubricant supply ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Federal Cabinet has approved exemption the levy of two percent extra sales taxes on supply of lubricants. The federal cabinet, chaired by Prime Minister Shahid Khaqan Abbasi, approved amendments to Sales Tax Special Procedure Rules, 2007 and allowed exclusion from extra tax chargeable under Rule

58T of Sales Tax Special Procedure Rules 2007 on supply of lubricants to and by lubricating oil marketing companies registered with OGRA to registered manufacturers for inhouse consumption. The federal cabinet also allowed exploration and production companies serving as operators in a petroleum concession area to transfer proportionate input tax to other working interest owners. The meeting ratiPied minutes of the meetings of Economic Coordination Committee held on 01 November 2017, 13 November and 28th November 2017.

Minutes of the meetings of Cabinet Committee on CPEC held on 09 November 2017 and 17 November 2017 were also ratiPied by the Cabinet. The Cabinet accorded permission, in principle, to sign the revised Memorandum of Understanding between the Ministry of Overseas Pakistanis and Human Resource Development of the Islamic Republic of Pakistan and the Ministry of Employment and Labor of the Republic of Korea on sending and receiving of workers under the Employment Permit System. The meeting approved amendment in the Schedule of FIA

Act, 1974. The amendment aims at bringing the offences of blasphemy and pornography in the ambit of Prevention of Electronic Crime Act, 2016. Observing that the directives issued to PEMRA to off-air and later on-air transmission of Private TV Channels on 25 Nov 2017 and 26 Nov 2017, respectively, as policy directives of the Federal government, the meeting accorded ex-post facto approval to the two directives. The Federal Cabinet granted expost facto approval to the appointment of Muhammad Arshad Khan Jadoon as Chairman Implementation

Published by M S Raza Oﬀ# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by (Ibne Hassan Oﬀset Printing Press, Shop No. 33 to 36 , Hockey Stadium, Karachi).

Tribunal for Newspaper Employees (ITNE) and also approved granting of MP-1 scale for him. The appointment has been made for two years. The Cabinet approved appointment of Qurban Ali Khan as Member Technical in Customs Appellate Tribunal (CAT) Peshawar, Saud Imran Ahmed in CAT Bench-I Lahore and Dr. ZulPiqar Ahmed Malik in CAT Bench-I Karachi. Resignation of Ali Suleman Habib, as Director from PIACL Board, was approved. The Cabinet approved appointment of Rear Admiral Zaka-ur-Rehman, SI (M) as Director General Pakistan Maritime Security Agency (PMSA).