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Karachi, Wed January 17, 2018

ISLAMABAD

TARIQ DERYA

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he MCC Islamabad will destroy the seized narcotics along with the contraband goods on the eve of International Customs Day on 26th of January 2018 at IDP Islamabad. According to details given by Saeed Khan Jadoon, Collector Model Customs Collectorate (MCC) Islamabad, that the MCC Islamabad has planned the event led by Zahid

Kokhar, Member Customs FBR, on the International Customs Day. Tariq Pasha, Chairman Federal Board of Revenue (FBR), will be the chief guest of the said event. He further told CT that the event of destruction of seized narcotics and other contrabanned goods shall be held at Margalla Dry Port Islamabad at 10:00am as part of the observance of the International Customs Day. In this regard, a destruction committee has also been constituted which will look after the event.

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The Collector told CT that the Additional Collector Customs will coordinate with the other members who comprise Deputy Collector Customs (IDP) Islamabad, Deputy Director I&I FBR, Assistant Collector Preventive Islamabad, Assistant Collector Accompanied Baggage, Representative of Directorate of Excise ad Taxation Rawalpindi, Representative ANF Islamabad, Inspector Department of Explosive, Superintendent Preventive, State Ware House and Air Freight Unit Islamabad.

Customs North Region displays adequate performance by getting Rs187m

Customs Export recovers Rs 7.4m from defaulter companies

Customs Preventive foils attempt to smuggle heroin at Lahore airport

Global economy to edge up to 3.1 percent in 2018: WB

Customs Quetta earns Rs444m more Income Tax than target in 2nd Quarter

Customs North Region earned Rs187millionmorerevenueunderthehead | SEE pAgE 02 |

Customs Export has recovered evaded amount of taxes and duties of Rs 7.4 m | SEE pAgE 03 |

Customs Preventive foiled an attempt to smuggle heroin from Allama Iqbal Airport | SEE pAgE 04 |

TheWB has predicted global economic growth to edge up to 3.1 percent in 2018 | SEE pAgE 14 |

MCC Quetta received an extra revenue of Rs444m as Income Tax against | SEE pAgE 16 |

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Ministry of Ports & Shipping gets PSDP proposals for ﬁscal year 2017-18 Wednesday, January 17, 2018

ISLAMABAD: The National Assembly standing committee on Ports and Shipping has unanimously approved all the proposals for the Public Sector Development Programme (PSDP) for the ﬁnancial year 2018-19 with emphasis to meet timelines a well as formalities. As per documents available with Customs Today here, PSDP proposals included a total of 30 projects; of which 15 ongoing and 15 new, proposed for the next ﬁnancial year. As per rules of the procedures of parliament, all the ministries are required to present PSDP proposals before the standing committees of the National Assembly and the Senate for scrutiny and approval before March.

Islamabad

customs north Region displays adequate performance by getting Rs187m

ISLAMABAD

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single bench of Customs Appellate Tribunal M/s Indus Laboratory on Monday disposed of a customs matter filed against filed office of Federal Board of Revenue (FBR). Muhammad Nasir Khan, Member Technical of Customs Appellate Tribunal earlier had reserved decision on the case after hearing on references challenging announcements made by field offices of Federal Board of Revenue. The bench was hearing M/s Indus Laboratory and Zaman Ul Haq. Appellants, Zaman Ul Haq and M/s Indus Laboratory had challenged decision announced by appellants in all of the said cases had challenged MCC decisions before the tribunal relating to import of machinery by the appellants. The department had seized the imported items owing to queries about classification. The appellants had prayed the tribunal to direct the department on release of imported items. Appellants, Zaman Ul Haq and M/s Indus Laboratory had also filed some other references before the tribunal which were being heard by different benches.

he Customs North Region earned Rs187million more revenue under the head of all duties and taxes during Sirst week of January Fiscal Year 2017-18 than a revenue collection during Sirst corresponding week of January Financial Year 2016-17. According to details given by sources of the North Region, comprising Customs Collectorates of Islamabad, Peshawar, Samberial and Gilgit-Baltistan, that the North Region showed satisfactory performance under all the heads of revenue collection during first week of January FY17-18 against the same period of previous FY16-17. The Collectorate of Gilgit-Baltistan earned nil revenue because it is a seasonal customs station as it shutdowns during the winter season due to heavy snowfall. The sources informed Customs Today that the North Region’s Customs Station Islamabad received a revenue of Rs356.46million during first week of FY17-18 while it did Rs324.81million during the same period of FY16-17 under all the heads. The Islamabad Collectorate showed 9.74% average of growth under all the heads during January FY17-18 against a revenue collection during first week of January FY16-17.

customs Tribunal settles case filed against field oﬃce of fBR

It was notified that the Collectorate of Peshawar collected Rs393.94million of revenue under the head of all taxes during first week of January FY17-18 against a revenue collection of Rs197.24million under the same head during the same period of FY16-17. The Peshawar showed

99.73% average of achievement against a revenue collection during first week of January FY16-17. The sources added that, during first week of January FY17-18, the Collectorate of Samberial earned revenue collection of Rs-34.12million under the head of all duties and taxes whereas it got

Rs7.16million under all the heads during previous first week of January FY16-17. The Customs Collectorate of Samberial posted 576.52% average of increase during first week of January FY1718 against a revenue collection during the same period of corresponding FY16-17.

Ihc settles customs matter filed by m/s hasas Engineering

ISLAMABAD

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ustice Aamer Farooq of IHC disposed of a customs matter involving M/s Hasas Engineering and Construction Company Private Limited. The appellant had challenged the act of recovery of said amount by commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. The bench had earlier reserved decision after hearing ar-

guments in the case with submission of record. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty (FED). M/s Hasas Engineering and Construction Company Private Limited had prayed the court that FBR office had issued a recovery notice to the company which did

not hold lawful grounds. The appellant had prayed the court to declare the act as illegal and without any lawful authority and an interim stay may be granted against recovery proceedings. M/s Hasas Engineering and Construction Company Private Limited had also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication did not address grievances of the appellant.

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NAB starts probe of missing cheques scam from Port Qasim KARACHI: The National Accountability Bauru (NAB) has initiated an investigation against the officials of the Guaranty Department of Model Custom Collectorate of Port Qasim after the security bonds cheques worth over Rs 10 million were found missing from the official record. Sources told Customs Today that it was reported to the NAB’s officials that the cheques were submitted by an importer against the surety of his consignment. It is further said that after hearing the information of missing of the cheques, the importer, who actually works as a builder in Karachi, has refused to submit any further guaranty to the custom officials.

Shc hears case seeking restoration of ST registration number

Wednesday January 17, 2018

Karachi

customs Export recovers Rs 7.4m from defaulter companies

KARACHI

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he Sindh High Court (SHC) has adjourned the hearing of a constitutional petition filed by M/s Royal Impex for restoration of its sales tax registration number seized by the Customs Department. A twomember bench, headed by Justice Munib Akhtar and Justice Omer Sial, was hearing the petition. On the last date of hearing, the court had provided the petitioner interim relief by restoring its sales tax number temporarily. Earlier, counsel for the petitioner stated that petitioner is engaged in the lawful business as commercial importer/ exporter/ wholesaler and fulfilling all the liabilities properly.

SRB withdraws sales tax on ‘small’ marriage halls KARACHI

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he Sindh Revenue Board (SRB) has exempted marriage halls from 13 percent sales tax that are located on plot measuring 800 square yards or less. According to latest working tariﬀ for tax year 2018, the 13 percent sales tax is applicable on services rendered by marriage halls and laws. However, this levy is exempted on marriage halls and laws which are located on plots measuring 800 square yards or less. The exemption is conditional and will not apply in case of marriage halls and lawns: (i) which are air-conditioned on any day in a financial year; (ii) located within the building, premises or precincts of a hotel, motel, guest house, restaurant or club whose services are liable to tax; (iii) as are owned, managed or operated by caterers whose services are liable to tax.

KARACHI

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he Customs Export has recovered evaded amount of taxes and duties of Rs 7.4 million from defaulter companies which were issued with notices to pay the outstanding dues and issued Sirst show cause notice in 2018. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Boulevard Embroidery availed undue beneSits and concessions by importing different consignments by misusing the SRO 566 through Examiner Raheel Waris. Sources said that the company was allegedly involved in tax evasion of Rs 4.12 million. After detecting the tax evasion, the Customs Export issued it with a Sinal notice on December 18, 2017 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s Boulevard Embroidery deposited the evaded amount in the ofSicial account of the Customs Export on 2nd January. On the other hand, the management of the M/s J S Traders Karachi also cleared Rs 3.28 million of taxes and duties. Sources told the correspondent that M/s JS Traders Karachi also availed undue beneSits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities served on it a Sinal notice on December 12, 2017. After re-

ceiving the notice, the management of the M/s JS Traders Karachi deposited the evaded amount of taxes. Earlier Customs Export has issued Sirst show cause notice to M/s Hudaiba Fabrics for recovery amount of Rs5.30 million. Meanwhie, The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 6.50 million allegedly by M/s Qadeer and Sons Karachi, it is learnt here. Sources told Customs Today

The management of m/s Boulevard Embroidery deposited the evaded amount in the oﬃcial account of the customs Export

fBR receives 1.38 million tax returns

KARACHI

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he Federal Board of Revenue has received as many as 1.38 million tax returns for tax year 2016-17. The higher rate of withholding tax on non-Silers has yielded results as around 45 percent income tax returns Siled after expiry of deadline. According to latest Active Taxpayers List (ATL) – 2016 for the week released by Federal Board of

Revenue (FBR) showed 1.38 million returns Siled so far as against the 0.953 million returns Siled for the

same tax year up to December 31, 2016. During the past three years the FBR separated withholding tax rates for Silers and non-Silers and gap in these rates widened gradually during the period to increase the cost of transactions on non compliant taxpayers. The appearance of a taxpayer on the ATL is mandatory in order to avail reduced rate of withholding tax. The existing ATL2016 will be applicable till the issuance of new ATL – 2017, which is likely by March 2018.

that M/s Qadeer and Sons imported a consignment of wooden pieces (for use in furniture manufacturing ) and got it cleared from the PICT on November 12, 2017 by paying customs duty at 6 percent after claiming the beneSit of the SRO 567/2007. However, the subject items were correctly classiSiable under the PCT 2305.2819, attracting customs duty at 10 percent and income tax at 12 percent, thus, by way of mis-declaration of classiSication, the company.

Appraisement East generates Rs 36,328m he Customs Collectorate of Appraisement East has generated Rs 36,328 million customs duty, sales tax, income tax and federal exercise duty during the month of December 2017. Sources told Customs Today that Customs Appraisement East collected Rs 15,670 million customs duty, Rs 15,275 million sales tax, Rs 5,270 million income tax and Rs 113 million federal excise.

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Rs1.8m of money laundering: Customs court imposes ﬁne on smuggler Wednesday January 17, 2018

Lahore

LAHORE: The Special Federal Court of Customs Taxation and Anti-Smuggling has imposed a cash penalty of Rs300000 on an accused held by the Pakistan Customs Preventive while making an attempt of smuggling of foreign currencies of Rs1.8million from the Allama Iqbal International Airport Lahore. The Special Federal Court of Customs Taxation and Anti-Smuggling declared an accused Shahid Waqas as guilty and imposed a cash penalty of Rs300000. The court has ordered the culprit to deposit the cash until the closure of the court which the accused did.

customs court issues warrant for alleged smuggler LAHORE

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he Special Court of Customs Taxation and Anti-Smuggling has issued warrant for a suspect wanted in a smuggling case. Muhammad Amir son of Muhammad Saleem, a resident of Garh Maharaja, district Jhang, was served several notices to appear before the court for attending the hearing. But he remained reluctant to appear before the court and defend the allegations therefore the customs court has issued him warrant directing to appear before the court within 30 days otherwise he will be declared a Proclaimed Offender. Muhammad Amir is wanted by Customs Faisalabad in a case No: 35/15 against smuggling.

customs court approves bails of two accused in mobiles smuggling he Special Federal Court of Customs Taxation and AntiSmuggling has granted bails of two accused in a mobile smuggling case. The two were apprehended in the smuggling of mobile phones from the Allama Iqbal International Airport while making an attempt to smuggle a huge quantity of mobile phones. Two accused named Abdul Rehman and Saleem Mukhtar were held last week when they appeared before the customs court then were sent to jail for judicial trial. Earlier, the customs officials had confiscated about 321 mobile phones from two passengers travelling via flight from Sharjah to Lahore during a raid on the Allama Iqbal International Airport. The customs arrested both accused from a flight of the Air Blue. –CB Report

Meanwhile on Monday, 12 other cases were also scheduled for hearing before the customs court. Most of the cases were adjourned without any proceedings because of unavailability of the parties and lawyers concerned. A case against an accused arrested from Sialkot in mobile smuggling case was also scheduled for the day that was adjourned for next week. Another case of tax evasion of Gujranwala was also postponed for next Thursday and the court also asked for witnesses. Meanwhile, The Special Federal Court of Customs Taxation and Anti-Smuggling has granted a three-day physical remand of two accused arrested in the smuggling of mobile phones at the Allama Iqbal International Airport. Two accused Abdul Rehman and Azeem were presented before the court of customs judge, Tahir Sabir, where customs investigation team asked for their physical remand.

customs preventive foils attempt to smuggle heroin at Lahore airport LAHORE

m hAYAT

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team of Collectorate of Customs Preventive foiled an attempt to smuggle heroin from Allama Iqbal International Airport. Sources told Customs Today, Collector Customs Preventive Faiz Ahmad received information about some smuggling attempts. He immediately directed anti-smuggling squads to enhance vigilance on Arrival Lounge and Departure Lounge of the airport. Sources said that during checking of international Slight, the customs team intercepted a person Muhammad Saleem who was set to depart for South Africa. During checking of the passenger, the customs team recovered three kilogram heroin from him that was being attempted to smuggle to Cape Town South Africa.

nine bottles of alcohol and other items retrieved from planes passengers

he customs ofSicials have conSiscated about nine bottles of alcohol and mobile phones from passengers travelling by different Slights during various raids conducted on the Allama Iqbal International Airport of January. Sources told Customs Today that the Slights were coming from Dubai to Lahore, Turkey to Lahore, Jeddah to Lahore and Muscat to Lahore. The customs took actions in Pakistan International Airlines (PIA) Slights, Turkish Airways Slight, Gulf Air and

Saudi Air Slight. The customs allowed all the passengers to go after the seizure of bottles of alcohol from their possession. The security ofSicers have launched an investigation into the matter. The customs has started strict checking of the luggage of the passengers, especially coming from European countries. A number of attempts of smuggling of foreign currencies and mobile phone accessories and other relevant items have also been thwarted by the customs. –CB Report

The Customs sources said that worth of the smuggled heroin is more than Rs 30 million in international market. The Customs team arrested the accused and started further investigations after registering a case against him. It is also necessary to mention here that Collector Customs Preventive Faiz Ahmad directed all antismuggling staff deputed and Sield

formations and airport to enhance vigilance and adopt zero tolerance policy towards smuggling. He directed anti-smuggling squads to use all available resources to curb smuggling attempts in the region. Sources told that due to comprehensive strategy adopted by Customs Preventive there is marginable decrease is being witnessed in smuggling attempts.

Tribunal accepts appeal filed by A.m construction he Customs Appellate Tribunal has accepted an appeal Siled by M/s A.M Construction Company versus Collector of Customs Appraisement 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 failed to prove the illegality of dump truck from United Arab Emirates and same appeal is accepted in favour of complainant. During the course of audit by the customs department, the team found

mis-declaration in the PCT heading in the import of used dump truck and an order was passed to pay duties and taxes. A petition was Siled before Lahore High Court who declared the Collector of Customs to determine the facts and decide the case. In compliance of directions of LHC Collector of Customs Appraisement who passed the order against appellant who Siled the case before the Customs Appellate Tribunal. Resultantly, the appellant Siled the case before the tribunal on the ground that earliest passed the order without providing sufSicient opportunities. –CB Report

‘Revenue collection fell down in fY 2016-17, expenditures shoot up’

LAHORE

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he last Sinancial year 2016-17 was not good as the revenue collection showed a shortfall and expenditures shoot up and the deSicit reached at 5.8 percent. These views were expressed by Miftah Ismail, the Adviser to the

Prime Minister for Finance, Revenue, and Economic Affairs with the status of Federal minister while responding to the questions of reporters at the APTMA House, Lahore. Replying to a question asked by Customs Today, Miftah Ismail said that when the PML-N took over the reign of government from the PPP, the budget deSicit was 8.2 percent of the GDP which was brought

down to six percent the very next year while it was at 4.5 percent during the third year of the present government’s tenure. However, during the last Sinancial year 2016-17 was not good as the revenue collection showed a shortfall and expenditures shoot up and the deSicit reached at 5.8 percent. The government is striving hard to keep the budget deSicit below Sive percent of the GDP.

He explained that the PML-N government had prioritised three main things at the start of its tenure and made strenuous efforts in ensuring landmark law and order situation, abundance of electricity, gas and economic development. Now it has successfully achieved its objectives. “We had to make the economy strong; we are doing it and have done it to a great extent.

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pecial Assistant to PM and Federal Minister for Revenue Haroon Akhtar Khan has said the government has always stood for a just and equitable taxation which boosts the economy. “There is no point of going for taxation if it harms the industry and weakens the very sources of revenue generation.” He said this while talking to a delegation of the Federation of Pakistan Chamber of Commerce & Industry (FPCCI) which met with him at the FBR House under the leadership of FPCCI President Ghazzanfar Bilour and other ofSice-bearers and members including Karim Aziz Malik, Atif Ikram, Chaudhry Javed Iqbal, Malik Sohail Hussain, Adeel Rauf and Hussain Sabri. The top hierarchy of FPCCI had come to congratulate Haroon Akhtar Khan on his elevation as Federal Minister, he added. The minister assured the delegation of entertaining every proposal which makes a solid and convincing case for tax relief for the industry or any other sector. “The governm e n t

d the assure n a h t tar k nmen n Akh gover e h haroo t t tha e the ation s valu deleg y a w l f the a osals o would p o r p and ness stions e busi h t sugge d n any ers a ng up i chamb m r fi for unity re comm measu policy

fully believes in boosting the industry and we are willing to work with the chambers and industry to ensure a level-playing Sield to businessmen and investors for earning the rightful proSit from of their investments,” he said. To the concern expressed by the delegation regarding the mode of payment of Sales Tax refunds, the minister said the refunds would continue to be paid through bank accounts to prevent any delay or needless hassles associated with the manual processing. “We started this mode of payment to facilitate the business community and we are committed to doing the same for the future,” he emphasized. Earlier, the delegation proposed the minister that any amnesty scheme to bring the offshore assets and investments should be inclusive and be extended to the onshore businesses. However such schemes can only be successful if they are implemented in letter and spirit and are inclusive and all-encompassing in nature leaving no weak areas that can be exploited by any quarter. Haroon Akhtar Khan assured the delegation that the government would always value the suggestions and proposals of the chambers and the business community for Sirming up any policy measure. He invited the chamber to carry out brainstorming among themselves and come up with sold and practical proposals and recommendations for consideration and incorporation in the next budget to boost the industry and the business.

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Wednesday, January 17, 2018

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EDIToRIAL

prospects of economic growth

ccording to the Global Economic Prospects report published by the World Bank, economic growth of Pakistan is expected to increase by 5.5 percent during the current fiscal year. However, domestic risks, fiscal slippages, increasing liabilities of infrastructure projects and limited growth in tax revenues are the issues need to get serious considerations. Though the lack of revenue generation through taxes can affect fiscal consolidation, the GDP is likely to record an average growth of 5.9 percent over the medium term due to domestic consumption, rising trend of foreign and local investment and a recovery in exports of value added goods. Pakistan achieved growth rate of up to 5.3 percent during the previous fiscal year of 2016-17 against the set target of 5.7 percent due to slow growth of the industrial sector but the construction and services sector performed well along with recovery in agriculture production. The bank maintains the economy has continuously been growing since the beginning of the current fiscal year, partly by increase in the domestic demand and partly by the credit growth. The infrastructural projects related to the China-Pakistan Economic Corridor also played their role in the growth process. However, the exports are picking up now, but the report points out widening current account deficit of 4.1 percent of the GDP as compared to 1.7 percent during the previous year. The report also points out slowed economic growth in South Asia, which remained 6.5 percent in 2017 owing to adverse weather conditions. Still the growth prospects remained robust with expected increase in household consumption, improvements in the infrastructure and introduction of policy reforms. The bank says that the regional growth will reach 6.9 percent in 2018 and will stabilise at 7.2 percent over the medium term. The governments will continue to adopt accommodative monetary policies to achieve at least the modest fiscal consolidation. Pakistan has been facing shortfalls in its revenues which slowed down the fiscal consolidation last year. The current account deficits have gradually widened, not only in Pakistan, but also across the region.

Saudi Arabia as trade partner A

LAHORE

DR AfTAB AfZAL

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fter years of political and economic cooperation with Saudi Arabia, the current government is still ‘developing a comprehensive package’ in consultation with stakeholders to promote bilateral trade. The government is working on identifying ‘potential’ areas of cooperation between the two countries. Ironically, Pakistan and Saudi Arabia are considered ‘brotherly Islamic’ countries and the political elite of the country has close relations with the Saudi monarchs. However, the long-term personal relations could not bring any benefit for the nation.

The Pakistanis working in Saudi Arabia are considered third grade citizens and have no worth or rights despite they have given their blood in the development of the kingdom. The Pakistani labourers as well as businessmen suffer at the hands of their Saudi sponsors but the Saudi officials and courts always decide in favour of their own people without caring minimum norms of justice and fair play. Now winter season has set in in Pakistan and Saudi citizens have started pouring into country to hunt endangered birds and species which migrate from Russia and beyond every year. The Saudi rulers know pretty well the worth of Pakistani ministers

who shamelessly own Saudi work permits without a tinge of conscience. How unfortunate it is that Saudi princes come to Pakistan for hunting and merry making, but keep their investment portfolios in western countries. Pakistan s a land of opportunities which can give them more profit and guarantee the protection of their capital, but still they prefer western nations over Pakistan. Now the current government is ‘looking for’ the common grounds and areas of economic and trade cooperation. It is not premature to say that the exercise will end in smoke. Despite years of efforts, the Arab investment is not more than a handful of peanuts in Pakistan. If

honour and respect is something to care, the government should stop gifting hunting licenses to Arab Sheikhs and rid themselves of ‘personal relations’ with Saudi elite. Arabs are not brotherly Islamic countries, and the government needs to introduce basic changes in its foreign policy. Pakistan should only care about its business and trade relations with other countries, whether those are Muslims or non-Muslims. Pakistan doesn’t need such ‘brotherly Islamic countries’ which ditch it and belittle it at every forum. The rulers of the country should learn to live as part of a respectable nation. Saudi Arabia is not a good trade partner of Pakistan.

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Customs Tribunal seeks record of petitions filed by M/s Klaguardia Logistics ISLAMABAD: Customs Appellate Tribunal’s bench comprising Members Tribunal, Syed Muhammad Anwar and Muhammad Nasir Khan directed M/s Klaguardia Logistics and M/s Trade Master to submit cases record by next date of hearing. Customs Appellate Tribunal’s bench comprising Members Tribunal, Syed Muhammad Anwar and Muhammad Nasir Khan heard the matters submitted by M/s Klaguardia Logistics and M/s Trade Master against Model Collectroate of Customs, Islamabad. Customs Appellate Tribunal also heard cases filed by M/S Kohinoor Trader. Counsels from M/s Five Star Trading had appeared before the bench and demanded time from the bench for finalizing preparations for the case.

customs preventive gets technology to scan passengers luggage with 100pc accuracy

Wednesday January 17, 2018

National

court seeks charge sheet against suspects in mobile smuggling case

ISLAMABAD

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he Pakistan Customs has successfully set up a control room at the Jinnah International Airport (JIAP) to curb smuggling as well as money laundering. According to the details, the Customs authorities have now been able to scan hundred percent luggage as well as passengers scrutiny by using latest technology to prevent any kind of smuggling and money laundering through air routes. Sources informed Customs Today that the Collectorate of Customs Preventive has installed 22 high tech cameras capable of scanning the luggage of passengers with 100 percent accuracy. The test run of the control room has already been done whereas now it is completely operational and is being monitored by the specialized Customs Preventive oﬃcers and staﬀ round the clock to avoid any kind of smuggling, informed the sources. Twenty two Close Circuit Cameras have been installed

KARACHI

m B RAnA

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he Customs Taxation and AntiSmuggling Court has directed the investigation ofSicer to complete investigations and submit a charge sheet against suspects namely Abdul Rauf Tauqeer Raja son of Raja Saleem, Vigilance OfSicer of M/s Gerry’s Dnata, and Muhammad Aamir son of Muhammad Siddiqui. The suspects were booked for attempting to smuggle non-duty paid foreign origin mobile phones from Dubai to Karachi. During the hearing, the investigation ofSicer appeared before the court and sought further time to Sile the challan against the suspects, therefore, the court granted him time and directed him to submit the challan on the next date of hearing. On last date of hearing, investigation ofSicer produced above mentioned suspects before the court and informed that on credible information, a team of Anti-Smuggling Organization intercepted the above mentioned suspect at Jinnah International Airport Karachi who was

coming from Dubai via Slight of Emirates Airlines. He further informed the court that during the search, customs ofSicials recovered Samsung Galaxy mobile phones S7, Samsung Galaxy mobile phones S7 Edge , Samsung Galaxy Note 5 8 NOs and other goods, they were asked to produce lawful documents of above men-

tioned goods, however they failed to produce any lawful documents, therefore, all goods were seized and suspects were arrested by customs ofSicials. He had submitted that prosecution needs further investigation, however, court had sent them to jail and directed jail authorities to produce them before the court on next

date of hearing, court also directed investigation ofSicer to complete investigation and submit charge sheet against above mentioned suspects on next date of hearing. Case was registered for violation of under section 2 (s) 16 & 178 of the Customs Act, 1969 punishable under clauses (8) (9) & (89) of section 156 (i) ibid.

Shc appellate bench allows petition challenging ST within the limits of the Jinnah International Airport (JIAP) and are giving hundred percent result round the clock and are capable of scanning deep through the luggage and the bags of the passengers at the departure as well as the arrival, added the sources. The sources claimed that in starting when the strategy was been executed few airlines restricted the customs authorities not to implement such plan as it will create hurdles and enhance the work of scrutiny and the scanning of the passengers. The sources also informed that the installed twenty two cameras are not only scanning the luggage of the passengers but are also capable give clear face reading of the passenger which gives Customs staﬀ an intimation regarding any kind of trouble.

KARACHI

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indh High Court has allowed a petition challenging sales tax. A SHC appellate bench, comprising JusticeAqeel Ahmed Abbasi and Justice ZulSiqar Ahmed Khan, ordered the petitioner Jeewa International to deposit the amount of Sales Tax with the Nazir of the SHC. An advocate from Franklin Law Associates appearing before the bench submitted that import of raw material (Iron) imperative for construction at the said plot. There was a sales tax exemption on import of raw iron, the counsel said seeking release of the consignment. The bench later extended concession of provisional release, directing the custom ofSicials to release the consignment once amount of sales

tax is realized. The same bench also allowed release of consignments of mobile phones and cosmetics in petition Siled by Digicom Trading and Global Traders pertaining to Regulatory Duty (RD). The bench extended the concession as per its order of release if a petitioner pays 50

per cent of the disputed amount of RD with the Nazir and 50 per cent with the customs department. Meanwhile, The Sindh High Court (SHC) has directed parties to Sile their comments on a constitutional petition Siled by M/s Super China Autos, seeking 20 percent redemp-

tion of Sine on its consignment of used auto parts scrap under SRO 499 (1)/2009 dated 13/06/2009. A two-member bench was hearing the petition. Earlier, during the hearing, counsel for the petitioner informed the court that it is engaged in lawful import of autos parts scrap and fulSills all the liabilities according to the law. He said that the petitioner imported a consignment of used auto parts scrap 18.130 MT front cabin/ haft cut HTV/ LTV/ cars without chassis number from Japan and Siled Goods Declaration (GDs) according to the law. According to the counsel, the said items also fall under SRO 499(1)/2009 dated 13/06/2009 subject to 20 redemption Sine on customs value as per para 2 © of the said SRO which has been amended subsequently after arrival of consignment on Pakistan vide SRO 563(1)/2017 dated 01/07/2017.

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Deputy Commissioner-IR Muazzam to retire on March 24 Wednesday January 17, 2018

National uAE, panama included in update fBR list for exchange of information

ISLAMABAD: Muazzam Rashid Khan, a BS-18 officer of Inland Revenue Service, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted Deputy Commissioner-IR, RTO-II, Lahore, will stand retired from the government service with effect from March 24, 2018.

Samaira nazir, Dr. Zulfiqar malik relinquish charge of their posts

ISLAMABAD

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ISLAMABAD

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ederal Board of Revenue (FBR) has updated the list of jurisdictions/countries for automatic exchange of information under OECD convention and now the revenue body would able to get information of Pakistanis from 101 jurisdictions. As per the new list Pakistan would able to obtain information from Panama and UAE under automatic exchange of information. This will help the local authorities to access bank accounts of Pakistanis maintaining in foreign banks for parking ill-gotten money abroad. Below is the current list of intended exchange partner for automatic exchange of financial information under prevention of tax evasion and fiscal crimes. The FBR said it may be updated from time to time: Andorra Anguilla Antigua and Barbuda Argentina Aruba Australia Austria Azerbaijan Bahamas Bahrain Barbados Belgium.

Appraising oﬃcer granted performance allowance lvis William, Appraising Officer (BS-16), Directorate of Post Clearance Audit, Karachi who has been selected through the process of internal job posting (IJP), is granted Performance Allowance equal to 100% of minimum of his basic pay (in pay scale-2011) with effect from 11.01.2018 i.e. the date of approval of the competent authority. Grant of Performance Allowance will be governed through the terms and conditions laid down vide Circular No. 6(96)S(BIC)/2013-14 dated 06.03.2015 to be read with Para-10 of Finance Division’s O.M.No.1(3)/Imp/2015-360 dated 07.07.2015. –CB Report

s. Samaira Nazir Siddiqui, a PCS/BS-22 ofSicer, has relinquished the charge of the post of Director General (BS-22), Directorate General of Post Clearance Audit, Islamabad w.e.f. 09.01.2018. Meanwhile, in pursuance of Ministry of Law & Justice Division’s NotiSication No.F.2(9)/2015-A.IV, dated 10.01.2018, Dr. ZulSiqar Ahmad Malik, a PCS/BS-20 ofSicer, has relinquished the charge of the post of Chief, Federal Board of Revenue (Hqrs.), Islamabad w.e.f. 12.01.2018. Meanwhile, in pursuance of Board’s NotiSication No.3243-C-I/2017, dated 15.12.2017, Ms. Mehreen Naseem, a PCS/BS-19 ofSicer, has relinquished the charge of the post of Additional Col-

lector (BS-19), OfSice of the Chief Collector Customs (Central), Lahore w.e.f.

08.01.2018 and assumed charge of the post of Additional Director (BS-19), Di-

rectorate of Intelligence & Investigation-FBR, Lahore on the same date.

customs gwadar seizes 30,000 liter of Iranian diesel T

KARACHI

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he Customs Collectorate Gwadar has impounded a big quantity of Iranian diesel worth more than Rs3.58million on Monday. Sources told Customs Today that an operation against smuggling items and non-dutypaid luxury vehicles is going on in full swing and several raids have been conducted during the previous month of December and another operation against smuggling items is also going on during the current month of January. Sources told Customs Today on Monday that Deputy Collector Gwadar constituted a team of Customs AntiSmuggling Organization (ASO) under the supervision of Customs Preventive Inspector Mushahid Ali and others. The team, during a search operation on Highway Road, intercepted a

container bearing registration No: DL462 which was going out of the city. During the raids, the customs team

impounded 30,000 liter of Iranian diesel valued at Rs3.58million. The customs team arrested three smug-

glers involved in smuggling and registered an FIR against them and started investigations.

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FBR collects information from China, India; Panama, UAE not on list ISLAMABAD: Federal Board of Revenue (FBR) has set up units for exchange of information under OECD convention, which was signed by Pakistan in September 2016. The FBR also issued list of 88 jurisdictions that will be used for exchange of information from September 01, 2018. On September 14, 2016 Pakistan signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and became the 104th jurisdiction to join the Convention. The Convention is the most powerful instrument for international tax cooperation. It provides for all forms of administrative assistance in tax matters: exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection.

Agp concerned at possible huge loss due to non-compliance of pAc directives ISLAMABAD

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he Auditor General Pakistan has showed concern over the noncompliance of directives of Public Accounts Committee under the head of Direct Taxes and Indirect Taxes by the Federal Board of Revenue and expressed a possibility to cause the national exchequer a colossal loss of millions of rupees. The Auditor General Pakistan said that, during last 30 years (From 1987 to 2017), only 33.38 percent compliance of the Public Accounts Committee’s directives was observed by the Federal Board of Revenue while, during last nine years from 2009 to 2017, this percentage has dropped by 3.3 percent. The Auditor General has

viewed that this reflected lack of seriousness by the Federal Board of Revenue. Resultantly, audit observations, involving substantial revenue piling up year after year, showed little action on the part of the Federal Board of Revenue to address these. The situation is alarming as chances of recovery of revenue are diminishing with the passage of time. According to a report from 2009 to 2017, there were 883 cases under the head of Direct and Indirect Taxes’ recoveries whereas fraud and misappropriation of funds in 29 cases were received. Under the head of Direct Taxes, total 269 objections were raised in nine years but only 13 compliance have been received. Under the head of Indirect Taxes, total 614 objections were raised during the same period but only 16 compliance have been received till today.

National

Senate commerce committee concerned over impacts of rupee devaluation on exports

court issues nBw against suspects in donkey hides smuggling KARACHI

m B RAnA

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he Customs Court re-issued non-bailable warrants against absconding accused, who were booked for attempting to smuggle donkey hides worth Rs 12,46,50,000 from Lahore to Karachi to be smuggled to China. During the hearing, investigation oﬃcer submitted that accused Muhammad Bilal son of Salamat Ali, Muhammad Farooq son of Muhammad Qasim and Muhammad Rafique alias Rafi are still absconders in this case and the prosecution is trying its best to arrest them, therefore, the court granted time and issued non-bailable arrest warrants against the suspects. According to the prosecution, local police recovered 4,986 donkey hides (pieces) which were put inside 642 bags. The operation took place at a shop located in Gulistan-e-Jauhar, Block-12 and arrested a Chinese citizen Tu-zhong Xiao son of Tu Shao, Syed Ehtisham Zaidi son of Syed Shamim Ahmed Zaidi, Muhammad Faisal Bhutto son of Muhammad Ibrahim, Muhammad Jumman son of Ameer Ali, Zeeshan Jan son of Patrus, Daniyal Rahman son of Muhammad Shakeel, Afshan wife of Ehtisham and absconders accused Muhammad Bilal son of Salamat Ali, Muhammad Farooq son of Muhammad Qasim.

ISKLAMABAD

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The Senate Standing Committee on Commerce has expressed concern over devaluation of rupee by the State Bank of Pakistan without making analytical assessment about its impacts on the national exports. “Around half of foreign exchange earned from the exports is spent on import of raw material for the value added products to be manufactured within the country. Therefore, devalued currency automatically raise the cost of domestic production,” said that chairman of the committee Senator Shibli Faraz while talking to Customs Today after an in-camera session of the committee with SBP ofSicials. He said that SBP ofSicials were not well prepared on the issue so they could not satisfy the committee on making such a decision without making an assessment of its impact on the national economy. Moreover, he said that SBP ofSicials also could not respond to the questions about further depreciation of the currency against dollar in coming days. Shibli said that committee had sought details of the ir-

Wednesday January 17, 2018

regularities in National Insurance Company Limited and directed the NICL to submit a detailed record along with a report on action taken against those involved. The committee also expressed displeasure over the appointment of chief executive ofSicer of National Insurance Company Limited (NICL). “I asked for providing details of recovery made so far from the people involved in corruption, besides furnishing the reports of total cases traced and how many were completely settled and what was the number of the cases that were partially resolved” he

added. The Chairman of the committee also asked for providing career record of newly appointed CEO NICL RaSia Shah and details of perks and privileges being provided to her. Meanwhile, Secretary Commerce and Textile Industry informed the meeting that non-performing loans (NPL) in textile sector was recorded at Rs188 billion and the companies went into recession and stopped their operations. He said that State Bank of Pakistan has identiSied that main reason behind the NPL was the investments made by these companies in other sectors like real estate in order to gain more proSit.

‘firm action against smuggling need of hour’

LAHORE

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Sirm action against smuggling is need of the hour which is causing huge losses to the national exchequer and local industries. Talking to the media, Lahore Chamber of Commerce and Industry (LCCI) President Malik Tahir Javaid said that smuggling has become a big threat for economic growth and any sector has hardly left untouched by this menace. He said that goods are smuggled through the borders of Afghanistan, Iran China, and India. He said that the Afghan Transit Trade is also used for smuggling,

adding that the volume of smuggling ranges between 50 and 60 percent of the formal economy. He said that it is costing the national exchequer in billions. Markets across the country are Slooded with smuggled goods and local industries are struggling for survival as smuggled goods are not only easily available everywhere but are also attracting the buyers who prefer foreign merchandise. The LCCI President said that smuggling is being done in a number of shapes like under invoicing, undervaluation of goods, misclassiSications, falsiSication of documents, mis-declaration of country and

short landing transit or re-export of goods. “The causes of smuggling are actually the incentives which motivate people to engage in smuggling. These causes basically arise from the desire of consumers to satisfy their needs. People who use smuggled goods satisfy their need to purchase desired goods. On the other hand, people who supply the illicit smuggled goods seek to satisfy their income needs”, the LCCI President added. Malik Tahir Javaid said that Smuggling is also encouraged by the large tax rates difference between neighboring countries. This means that goods are cheaper in one country than an-

other, resulting in enactment of import duties to protect the local industries. This scenario encourages smuggling. Administration associated with the excise tax can also be complicated and costly, adding an extra burden on the importer. The LCCI President demanded of the government to review Afghan Transit Trade agreement as it has become the main source of smuggling into Pakistan. He said that its annual volume has been estimated at over 6 billion dollars. He said that under the cover of Afghan Transit Trade, the Afghan imports are back smuggled into Pakistan with the help of Afghan traders.

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Honda Philippines raises prices for most cars due to tax reform law

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MANILA: The Philippine unit of Japan’s second top automaker Honda Motor Company raised prices for most models following the implementation of new excise tax rates. Honda Cars Philippines Incorporated on January , posted on its oﬃcial website an updated price list, reﬂecting increases for all models below premium levels. For instance, a Honda City 1.5 E MT vehicle can now be bought at P820,000, which is P56,000 higher than its price last September. Customers who bought a Honda HR-V 1.8 EL CVT in 2017 will also be glad to know that they were able to save P121,000.

Wednesday January 17, 2018

Smuggled Japanese koi fish seized in Shenzhen

S.korea to consider steps to rein in soaring won SEOL

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SHENZHEN

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ustoms ofSicials show koi Sish smuggled from Japan in Shenzhen City, South China’s Guangdong Province, Jan. 2018. Wenjindu Port of Shenzhen Customs discovered 23 koi carp, measuring up to 100 centimeters in length, and 120 koi fry in a vehicle, the Sirst such smuggling case in recent years. Koi Sish are colorful, ornamental versions of the common carp, thought to be a symbol of luck and prosperity. Meanwhile, Weaker metal demand from China is expected to affect the local mining industry, which has been the Mainland’s chief supplier when it came to nickel ore. According to a report by the World Bank entitled “Commodity Markets Outlook,” there is a possibility for the booming Chinese economy’s consusmption of metal to Slatline as

Tax reform helps Indian truck drivers go the extra mile he Indian government’s Goods and Services Tax (GST) has brought cheer to the logistics industry, as trucks need to undergo fewer stops at checkpoints to pay various taxes, which used to vary from state to state. Logistics sector representatives have said after the GST was launched on July 1, 2017, the average distance covered by a truck in India rose to 400-450 kilometers per day, from 300-350 kilometers, Press Trust of India reported. Before the tax was implemented trucks had to stop at checkpoints and each stoppage meant a loss of nearly five hours. In addition, the drivers had to face harassment from tax officials. So, launching the GST reduced the time taken to make deliveries to customers. –CB Report

it limits its output and exports due to tighter environmental policies. Moreover, the shift of that country’s focus from manufacturing to services might bring demand for steel in particular to dip. For the last 15 years, the World Bank said China has accounted for the bulk of global growth in the consumption of metals as it continued to grow its redhot economy. Nonetheless, metal prices are projected to ease slightly

this year following an estimated 22percent rise. Minerals like copper and nickel are seen to increase by 1.12 percent and 4.54 percent, respectively, to $6,050 a metric ton (MT) and $10,559 a MT, respectively. “A 10-percent decline in ore prices will also be offset by increases in all base metals prices, particularly for lead, nickel and zinc due to mine supply tightness,” the report said.

Russia has destroyed 19,000mT of food under import ban

ussia’s food safety watchdog has released its latest update on the amount of food that has been destroyed as part of an import ban on Western countries that applied sanctions in response to the Crimea conSlict. In August, 2015, one year after the ban was put into place, the government decided to start destroying illegal imports in an attempt to disincentivize trade through gray channels. In its latest update, the Federal

Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) reported 19,379 metric tons (MT) had been destroyed of which 18,655MT were plant products. This means 3,248MT of food has been destroyed since the around six months ago. The initial decree included the U.S., EU member countries, Canada, Australia and Norway, but now also includes Ukraine, Albania, Montenegro, Iceland and Liechtenstein. –CB Report

outh Korea is to consider measures to boost capital outSlows if the won continues to rise sharply, three people familiar with the matter said yesterday, a move that could help the trade-reliant nation deal with the economic effects of a surging currency. While operations to curb the won’s volatility would continue, the nation’s foreign exchange authorities might also look into ways to spur investment abroad should the local currency appreciate on a consistent basis, the people told reporters. The government “can consider measures to spur FX outSlows,” one of the people said. A spokesperson for the South Korean Ministry of Finance declined to comment on the matter. Rising domestic interest rates, strong exports

and heightened US scrutiny on South Korea’s foreign exchange regime have made it harder for Asia’s fourth-largest economy to tame the won’s gains.Measures that encourage capital out of the country could help policymakers remove some of the upward pressure on the currency without needing to use direct intervention in the foreign-exchange market, a sticking point in Seoul’s relations with the Washington. The US Department of the Treasury in October last year kept South Korea on a “monitoring list” of countries in its report foreign exchange policies of major trading partners, along with China, Japan and Germany. Meanwhile, The South Korean Government has indicated that it will seek to enhance certain business tax incentives in 2018 and review property taxation. The Government released details of its planned economic policies for 2018. It said that it would seek to stimulate the creation of “decent jobs” in the private sector.

Economy seen to grow at least 7% hilippinesAn economic growth of at least seven percent is possible for the Philippines this year as the new tax reform law takes effect and government’s aggressive infra spending program rolls out, top economists said yesterday. Finance Undersecretary Gil Beltran said a gross domestic product (GDP) growth of at least seven percent is doable this year with the implementation of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law. He said the Sirst package of the Comprehensive Tax Reform Program should be complemented by the

planned tarifSication on rice and massive infrastructure projects under the ambitious Build Build Build program of the Duterte administration. “Low inSlation is an indication that the country’s macroeconomic fundamentals remain strong. Solid fundamentals backed by TRAIN 1 implementation, rice sector reform and the Build Build Build policy will push the country’s growth to seven to eight percent this year and sustain manageable inSlation,” he said. For its part, First Metro Investment Corp. (FMIC) said the domestic economy is expected to grow between seven to 7.5 percent this year. –CB Report

uk companies nervous over deadline for new customs system

LONDON

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aul Williams has been in the business of moving goods through customs for more than 20 years. And as the 47-yearold Welshman contemplates the challenges of the year ahead, few things worry him more than a

plan by HM Revenue & Customs to introduce, this time next year, a new computer system for making customs declarations. If it all goes as planned, the new £157m Customs Declaration Service (CDS) will go live just three months before Britain leaves the EU and will have to manage an external border with the bloc. “HMRC is introducing a massive new programme

at what is already a critical time,” said Mr Williams, commercial director of Horizon International Cargo. “It would be a complex undertaking at the best of times but proceeding with it at this very moment feels like a high stakes gamble.” UK companies that export goods outside the EU currently use an ageing computer system called Chief (Customs Handling of Import

and Export Freight) to make their declarations. “Once we know we have to ship an item, we can input the product codes and tariff codes into Chief in no more than 10 minutes,” said Mr Williams. Although it has been in place since 1989, ”it’s a system we know and it works,” he added. Now Mr Williams and other freight handlers are facing uncertainty.

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China adjusts tariff policies for major equipment imports BEIJING: Chinese authorities have released tariff policy adjustments for imports of major technological equipment in response to changing industrial development in the country. A notice issued by six government agencies including the Ministry of Finance and the top economic planner revised product catalogues that specify the industries encouraged by the government and those that no longer enjoy tax breaks. Imports of major technological equipment on the revised list for government support will continue to be exempted from tariffs and value-added tax. Imports of core parts and material for major technological equipment have enjoyed favorable policy for years. With the changing industrial landscape, the government has constantly adjusted tax policies for imports.

Europe becomes victim of Russia’s newest oil strategy igher shipments of Russian crude oil to China may saddle European importers with a fatter bill, an industry consultancy warned at the end of last year, noting the latest stage of Russia’s Eastern pivot: the launch of the expanded East Siberia-Pacific Ocean pipeline that would lift Urals crude supply to China twofold, to 30 million tons annually. FGE said in a note quoted by Bloomberg that Russia will start moving more Urals eastward right after the launch of the pipeline extension, at a rate of 160,000 bpd. The overall increase of Russian crude shipments to China, according to the consultancy, could be around 200,000 bpd. This means less oil for Europe, which is Russia’s numberone oil client. This only highlights the significance of Moscow’s Asian pivot amid lingering European sanctions following the 2014 annexation of

Ports & Shipping

‘china harbour Engineering to invest $1b in Sri Lanka’s port city’ COLOMBO

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consortium led by state-run China Harbour Engineering Company Ltd will invest $1 billion to build three 60-storey ofSice towers on reclaimed land of the Port City development in Sri Lanka’s capital, a government minister said. The $1.4 billion development of Port City, a project of China Communication Construction Company (CCCC) (601800.SS), the parent company of CHEC, began in late 2016 as part of Beijing’s ambitious plans to create a modern-day “Silk Road” across Asia. “It will be part of the new Sinancial city,” regional development minister Champika Ranawaka told reporters while accompanying Prime Minister Ranil Wickremesinghe on a inspection tour of the Port City development in Colombo. “The investment will be $1 billion and we expect to sign the agreements this month in Beijing.”

CHEC ofSicials were not immediately available for comment. Sri Lanka is preparing legislation with tax incentives to lure investment to the 269-hectare (665-acre) Port City tract. About 60 percent of its total area is reclaimed land from the sea in the commercial heart of Colombo, adjacent to the main port and the historic Galle Face Green park. The rest is expected to be reclaimed by June 2019.

For the overall project, Sri Lanka anticipates an eventual $13 billion of investment in housing, marinas, health facilities, schools and other developments over the next 30 years. The project is expected to create over 83,000 jobs. CHEC Port City Colombo (Pvt) Ltd, the Sri Lanka company handling the project for CCCC, aims to deliver the Sirst site for construction by the end of 2018.

Wednesday January 17, 2018

kpT shipping intelligence report he Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours. ALONG SIDE (Bulk Oil Pier) OP-I Lahore D. Crude Oil PNSC 02/01/18 OPII Bum Shin D. Palm Oil Alpine 02/01/18 OP-III King Douglas D. Mogas GAC 02/02/18 ALONG SIDE (East Wharves) 4 Western Santos D. Gen.Cargo Sea Hawks 01/01/18 12/13 Common Spirit D. Steel M.R Traders 02/01/18 14/15 Polo D. L. Cnt. Golden 01/01/18 ALONG SIDE(P.I.C.T) 6/7 Sima Genesis D. L. Cnt. East Wind 03/01/18 8/9 Kota Kamil D. L. Cnt. PDelta 03/01/18 ALONG SIDE(PDWCP): SAPT-3 Hyundai Courage D. L. Cnt. United Arab 01/01/18 SAPT-4 MSC Maria Laura D. L. Cnt. MSC Pak 02/01/18 Along Side(West Wharves) Berth Vacant… ALONG SIDE (K.I.C.T): 26/27 YM Orchid D. L. Cnt. Inshipping 02/01/18 28/29 Maribor D. L. Cnt. APL 01/01/18 EXPECTED ARRIVALS: CONTAINER (GEARLESS) MOL Eminence MOL Pak 03/01/18 Not Sched 700 Cnt. 1,000 Cnt. –CB Report

S.korea ethanol imports jump 39% on year in 2017 Crimea and Russia’s involvement in separatist conflicts in the Ukraine. In 2016, Russia exported an average 3.7 million barrels daily to European countries, compared with less than a million bpd to China, according to figures from the Energy Information Administration (EIA). In percentage figures, Europe accounted for 70 percent of Russia’s 2016 crude oil exports, while the share of China was just 18 percent. Yet this is changing fast, as this chart from the EIA shows: The rise in Chinese exports has been quite steep since 2014: as of November last year, Russia shipped 1.3 million barrels of oil daily to China. All the latest signs point to further growth. –CB Report

SEOL

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outh Korea’s ethanol imports increased 39% year on year to 261,584 mt in 2017, according to data released by Korea Customs Service. The US remained the key import origin last year, accounting for 78% of total imports, followed by Pakistan at 10% and South Africa at 6%. Undenatured ethanol imports however, fell 6% year on year to 143,802 mt in 2017. Australia overtook Brazil as the largest supplier of undenatured ethanol last year, accounting for 44% of total imports, followed by Cambodia at 16% and Pakistan at 14%. Volumes from Brazil accounted for only 9% of the total undenatured ethanol imports, down sharply from 49% in the previous year. South Korea has been importing more unde-

natured ethanol form Australia since December last year because of more favorable prices compared with Brazilian and Pakistani industrial grade ethanol. This takes the landed price of grade B ethanol from Brazil into South Korea close to $600/cu m, S&P Global Platts data showed. In December, South Korea imported 33,922 mt of ethanol, up 5.5% from November, customs data

showed. Of this, 57.7% was denatured ethanol and the rest undenatured ethanol. The main origins for denatured ethanol imports in December were the US (79%), Pakistan (13%) and South Africa (5%). For undenatured ethanol, 62% of imports came from Australia, 25% from Cambodia and 7% from Pakistan. On the export front, South Korea exported 24,750 mt of ethanol in

2017, up 14% year on year. Meanwhile, South Korea’s cigarette exports rose to a record high last year on the back of growing demand from Southeast Asian countries, the latest customs data showed Saturday. he total value of tobacco exports reached a record US$1.13 billion in 2017, up 9.7 percent from the previous year’s $1.01 billion, according to the data compiled by the Korea Customs Service. The Sigure has been on a steady rise, renewing records for four straight years since 2014. The tally surpassed the $1 billion mark for the Sirst time in 2016. The increase in outbound shipments to Southeast Asian countries was remarkable, with those exported to Vietnam jumping 50 percent to $87.7 million from $56.4 million in 2013, according to the data. Exports to Thailand also increased 120 times from $597,000 to $9.72 million during the cited period.

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SBP lifts restrictions on dollar import KARACHI: State Bank of Pakistan (SBP) has lifted restriction on import of US dollar against export of other permissible foreign currency in order to stabilize the exchange rate in local market. A circular issued by the central bank and decided to allow exchange companies to import cash US Dollars against export of permissible foreign currencies without observing any limit and/or repatriate equivalent US Dollars through credit to their foreign currency accounts maintained with banks in Pakistan.

Wednesday January 17, 2018

Business

global economy to edge up to 3.1 pc in 2018: wB ISLAMABAD

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he World Bank (WB) has predicted global economic growth to edge up to 3.1 percent in 2018 after a much stronger-than-expected in 2017, as the recovery in investment, manufacturing, and trade continues, and as commodity-exporting developing economies beneSit from Sirming commodity prices. However, this is largely seen as a short-term upswing. Over the longer term, slowing potential growth—a measure of how fast an economy can expand when labor and capital are fully employed—

SEcp registers 83,879 companies by end-2017 ISLAMABAD

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puts at risk gains in improving living standards and reducing poverty around the world, the World Bank warns in its January 2018 Global Economic Prospects. Growth in advanced economies

Basmati rice worth $147.310m exported in last five months

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ecurities and Exchange Commission (SECP) has said the company registration has increased to 83,879 by end of year 2017, according to a statement issued. In the first half of current financial year, the commission registered 4,954 new companies, raising the total number of companies to 83,879. As compared to the corresponding month of last financial year, it represents a growth of 44 percent. The massive increase in number of new companies is the result of the SECP’s various reform measures, i.e. simplification of incorporation procedure.

is expected to moderate slightly to 2.2 percent in 2018, as central banks gradually remove their post-crisis accommodation and as an upturn in investment levels off. Growth in emerging market and

developing economies as a whole is projected to strengthen to 4.5 percent in 2018, as activity in commodity exporters continues to recover. “The broad-based recovery in global growth is encouraging, but this is no time for complacency,” World Bank Group President Jim Yong Kim said. “This is a great opportunity to invest in human and physical capital. If policy makers around the world focus on these key investments, they can increase their countries’ productivity, boost workforce participation, and move closer to the goals of ending extreme poverty and boosting shared prosperity,” Kim added. According to the report, 2018 is on track to be the Sirst year since the Sinancial crisis that the global economy would be operating at or near full capacity.

ISLAMABAD

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asmati rice worth US$ 147.310 million was exported from the country during Sirst Sive months of current Sinancial year as compared the exports of US$ 143.294 million of the corresponding period of last year. Exports of basmati rice from the country grew by 2.80 percent during the period form July-November, 2017-18 as it was recorded at 144,093 metric tons as against the

exports of 150,631 metric tons exported in the same period of last year. Meanwhile, rice other then basmati valuing US$ 497.060 million exported during the period under review as compared the exports of US$ 414.42 million of of same period last year, according the data of Pakistan Bureau of Statistics. During the period under review, about 1,206,877 metric tons of rice other then basmati exported as against the exports of 1,125,225 metric tons of same period last year, it added. In Sive months of current Sinancial year, rice exports from the

country grew by 15.62 percent as about 1,350,916 metric tons of rice valuing US$ 644.370 million exported as compared the exports of 1,275,856 million worth US$ 557.336 million of same period of last year, it added. On the other hand exports of rice from the country on month on month basis also witnessed an increase of 12.85 percent as about 435,688 metric tons of rice valuing US$ 188.707 million exported as compered the exports of 417,721 metric tons worth US$ 165.742 million of same period of last year.

SmEDA to launch development programme GILGIT

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mall and Medium Enterprises Development Authority (SMEDA) Chief Executive Oﬃcer Sher Ayub Khan envisaged that National Business Development Programme (NBDP) would be launched by SMEDA this year would mobilize an investment worth Rs 8 billion. Addressing a meeting here at SMEDA Head Oﬃce, he added that the programme would facilitate over 3.14 million SMEs over a period of five years. Under the NBDP, he elaborated that 3,800 training programmes would be organized to be supported with 761 over-the-counter documents on feasibility reports, regulatory procedures, HR and technology. The programme, he asserted, would also arrange 913 business starts up grants and 500 international certifications, besides compiling 23 market research papers. A concrete plan bearing support services needed by the SMEs had been chalked out, and the plan included management development support, service acquisition support and favourable policy support, which were being demanded by the local SMEs since long time. The SMEDA Chief pointed out that another important demand regarding access to finance had also be addressed under the programme that would be providing credit worthiness assessment support to over 9,500 SMEs to facilitate them.

SBp grants special participant status to nccpL ISLAMABAD

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tate Bank of Pakistan (SBP) has granted a status to National Clearing Company of Pakistan Limited (NCCPL) as a special participant of PRISM System to settle net position of capital market transactions in PRISM. To mitigate the liquidity / settlement risk, the central bank

advised all member banks to maintain adequate funds / liquidity in their current accounts with SBP BSC (Bank) based on their existing and future clearing requirements. It further said for each business day, two (2) clearing cycles shall be processed. The first batch shall be processed at 12:00 noon followed by the second batch at 3:30 pm. The settlement of clearing

through NCCPL shall be made operational from January 22, 2018. New Mechanism for NCCPL’s Settlement through PRISM System NCCPL shall prepare Multilateral Net Settlement Batches (MNSBs) twice a day on the SWIFT message format (MT-971) and submit the same to SBP for settlement at 12:00 noon and 3:30 pm. In terms of the Payment and Collection, NCCPL would prepare a net position to debit or

credit current account of PRISM Participants through PRISM System. PRISM Participant’s current account at SBP BSC Karachi Office will be debited or credited through PRISM System as per the figures provided/sent by NCCPL in this batch each working day. In case of any shortfall, the PRISM Participants are required to arrange funds within stipulated time. The PRISM Participants who are eligible for SBP’s

Reverse Repo Facility can avail Intraday Liquidity Facility (ILF) as per PRISM Rules. In case any Participant is unable to settle their clearing obligations within fifteen (15) minutes time, SBP may take penal action including levying of penalties under applicable laws. NCCPL shall inform all settling banks and their treasury departments about the Multilateral Net Settlement batches on daily basis.

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Dramatic rise in Iran wheat exports TEHRAN: More than 276,410 tons of wheat worth $70.78 million were exported from Iran during the first nine months of the current fiscal year registering a 1,352% and 759% growth in weight and value respectively compared with the similar period of last year, the Agriculture Ministry announced. Iran exported its first wheat consignment of 29,630 tons to neighboring Oman on June 12, 2017. According to the ministry’s report, over 60,720 tons of wheat worth $17.08 million were imported during the same period, indicating a 95.6% and 94.9% decline compared with the corresponding period of last year, ISNA reported. Ministry officials have banned wheat imports, as Iran has reached self-sufficiency in the production of the crop. The above-mentioned imports are related to order registrations placed before the ban was imposed last year.

IccI much concerned over depreciation of rupee against dollar

Wednesday January 17, 2018

Chambers

chinese envoy urges businessmen to maximize business prospects from cpEc

ISLAMABD

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he Islamabad Chamber of Commerce and Industry has expressed concern over the falling value of the rupee against the dollar as it has hit an all-time high of 113 against a dollar in the open market. It called upon the government to take urgent measures to bring stability in the value of domestic currency as the continuous fall in the value of rupee will bring imported inflation in the country and curtail domestic demand leading to further slowdown in the economic growth of the country. Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry, said that, after hectic eﬀorts of the government, Pakistan’s economy was

marching towards stabilization. However the falling value of rupee will push the economy from low inflation and high growth to high inflation and low growth period that will not be in the best interest of the country. He said the slowdown in the economic growth and curtailed domestic demand will adversely aﬀect employment generation and give rise to a new wave of price-hike in the country. He said Pakistan mostly depends on imported capital goods and raw material for industry, but the falling value of rupee will make all imported goods and raw material costly. It will also increase the prices of petroleum products and further enhance the cost of debt servicing leading to more pressure on our forex reserves. He said the rupee depreciation may provide some incentives to the export sector of the country but, due to rise in the cost of imports, production cost will further go up that will aﬀect the competitiveness of our exports.

ISLAMABAD

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E. Mr. Yao Jing, Ambassador of China to Pakistan has stressed upon the local business community to take active participation in CPEC projects as it offered them great potential to maximize business prospects from this historic mega development project. He was talking to a delegation of Islamabad Chamber of Commerce and Industry that called on him in his ofSice led by President Sheikh Amir Waheed. Yao Jing said that Pakistani private sector should gear up for joint ventures and investment in the Special Economic Zones (SEZs) being established in Pakistan under CPEC project as SEZs would offer them good scope for JVs and partnerships with Chinse counterparts. He said China has achieved fast economic development and Pakistan should take beneSit from Chinese experience for accelerating its economic growth by developing close cooperation with China. He said the trade balance be-

tween China and Pakistan was heavily in favor of China and Pakistani business community should step up efforts to further improve trade and exports with China. He assured that he would like to work with ICCI to promote strong connectivity between the private sectors of China and Pakistan. In his welcome address, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry congratulated H.E. Mr. Jao Jing on being appointed as Ambassador of China for Pakistan and hoped that

he would play role for taking bilateral trade and economic relations between Pakistan and China to higher levels. He said Chinese embassy should share information with local chambers of commerce about the demand of Pakistani products in Chinese market that would help our private sector too take beneSits from potential business opportunities existing for them in China. He said CPEC was a good hope for Pakistan’s better economic future and stressed that China Embassy should give a detailed brieSing

‘Eﬀorts afoot to make pak attractive for investment’ LAHORE

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oard of Investment (BoI) Chairman Naeem Y Zamindar said that efforts were well on the way to make Pakistan a key destination for foreign and local investment. Lahore Chamber of Commerce and Industry (LCCI) Senior Vice President Khawaja Khawar Rashid, Vice President Zeshan Khalil and Executive Committee Members here at Lahore Chamber, he said that foreign direct investment was increasing gradually and a target of $3.7 billion had been set for the current year. Zamindar said that Pakistan had lucrative opportunities for both foreign and local investors in various sectors of economy including textile, energy, agriculture, health, edu-

cation and others. Special attention was being given to Special Economic Zones (SEZs) under the game changer project of China-Pakistan Economic Corridor (CPEC), as volume of Chinese economy was expected to be $ 30 trillion within the next 25 years and Pakistan could grab huge beneSits as economies of both countries were going to be merged under CPEC, he maintained. He said that cost of doing business in Pakistan must be reduced as the business sector was the driver of economy. The BoI chairman said, “We want to brand Pakistan as entrepreneur future country by introducing innovations and modern industrial concepts on SEZs and Priories Economic Zones (PEZs).” While, Lahore Chamber’s SVP Khawaja Khawar Rashid said that business community had serious concerns about declining trend in

FDI (Foreign Direct Investment) despite the fact that CPEC had brought positive change in the current scenario of national economy. There were 48 countries which had signed Bilateral Investment Agreements with Pakistan but their share in total investments in Pakistan was negligible. He suggested the BOI would target these countries for marketing the investment potential of Pakistan. In Siscal year 2014, the size of total foreign direct investment in Pakistan was around $4.44 billion which contracted to $2.48 billion in Siscal year 2017 registering 44 per cent decline, he said and added that there was same trend witnessed in July-November2017 Sigures of FDI which registered 43.6 per cent regression. He said that Special Economic Zone Act was promulgated in September 2012.

on CPEC in ICCI so that its members could become aware about how to take maximum advantage from this mega project. He emphasized that China should focus on technology transfer to Pakistan and share its expertise with Pakistani private sector so that business and industrial activities could Slourish in our country. He said increasing inSlux of Chinese delegations to Pakistan showed their keen interest in CPEC and urged that CPEC should provide win-win opportunities to the private sectors of both countries.

wccI arranges reception for fpccI chief omen Chamber of Commerce and Industry (WCCI) has arranged a reception in honour of newly elected president of Federation of Pakistan Chamber of Commerce Ghazanfar Bilour. On the occasion chairperson WCCI Fitrat Ilyas Bilour cut the cake and prayed for the success of her son as FPCCI chief. She said the success of Ghazanfar Bilour was a big achievement for business community of Khbyer Pakthunkhwa. She said that Ghazanfar Bilour would take positive measures for resolving the problems of KP business community. The function was attended by Vice President WCCI Rukhsana Nadir, Senior Member WCCI Azra Jamshaid and executive members of WCCI. –CB Report

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Peshawar’s court acquits accused of drug smuggling charge PESHAWAR: A local court of Peshawar acquitted an accused charged with smuggling of huge quantity of narcotics from Afghanistan into Pakistan via Torkham Border.Additional District and Sessions Judge of Peshawar Alia Lodhi acquitted accused Behram, a resident of Jamrud tehsil of Khyber Agency, in the narcotics case after the public prosecutor failed to prove the charges. During a course of arguments, counsels for accused Ambreen Gulzar and Sana Gulzar submitted before the court that Customs oﬃcials said he was driving a truck while coming from Afghanistan.

Wednesday, January 17, 2018

CUSTOMS BULLETIN

customs Quetta earns Rs444m more Income Tax than target during 2nd Quarter QUETTA TARIQ DERYA

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he Model Customs Collectorate Quetta received an extra revenue of Rs444million as Income Tax against an allocated revenue collection target for 2nd Quarter Fiscal Year 2017-18. According to details given by Ashraf Ali, Collector Model Customs Collectorate Quetta, that the collectorate generated Rs1082.644million of Withholding Tax (WHT) during 2nd Quarter (October to December) FY17-18 against an assigned revenue collection target of Rs638.08million. He said the Collectorate of Quetta earned Rs345.241million as ST during the month of December FY17-18 while it was earmarked Rs202.47million of revenue target. The collectorate collected Rs384.957million revenue of ST during the month of November FY17-18 while it was allocated Rs208.23million under the same head. The collector told CT that, during October FY17-18, the collectorate got Rs345.241million net collection as ST against an earmarked

revenue target of Rs227.38million under the same head. The collectorate showed 74% average of

achievement during the month of December against an assigned revenue target of IT while it showed

85% growth during the month of November FY17-18. The collectorate proved 52% average of

achievement against an allocated revenue collection target for the month of November FY17-18 as IT.

‘customs rules required to be adapted to enhance pak-Afghan trade’ PESHAWAR

IRfAn BAhADuR

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he customs rules need to be revised in order to boost the mutual trade between Pakistan and Afghanistan which has fallen into a new low after the increase in uncertainty between both countries. Pakistan-Afghanistan Joint Chamber of Commerce and Industry urged the two countries not to

mix trade and political issues as it has damaged the mutual trade badly. Talking to Customs Today, Director Pakistan-Afghanistan Joint Chamber of Commerce and Industry Ziaul Haq Sarhadi said the trade between the two countries is at the lowest ebb due to political hostilities. He said the mutual trade has dropped from 2.6billion to just $1.6billion annually which is a matter of grave concern for the business community of the neighboring countries. Ziaul Haq Sarhadi, who is also President of Frontier Customs Agents Group Khyber

Pakhtunkhwa, said the trade between Pakistan and Afghanistan can be enhanced by $7.5billion annually if the two governments remove hurdles in the trade at different levels. He demanded a review of the Pak-Afghan Transit

Trade Agreement saying the agreement has become obsolete and needs rectiSication. Mutual trade has recorded an increase of 65 percent and the trade volume has crossed the Sigure of $2.5billion in 2014-15 but factors like hostility between Pakistan and Afghanistan, unfavorable conditions and shifting of a huge portion of this trade to Chabahar Port in Iran are the major factors behind the decline of trade between the two states, he added. Sarhadi further said the trade volume is further shrinking day by the day adding India has established a second areal corridor

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with Afghanistan which imported 1,550 ton of fresh and dry fruits, handmade carpets and herbs to India. He said the Sirst aerial corridor was established in June 2017 during which 52 Slights operated. Sarhadi said the mutual trade between India and Afghanistan reached $600million adding it would be enhanced to one billion dollars this year which is alarming for Pakistan. He called for steps like relaxing of customs rules, facilitating of transportation of goods and modifying the Pak-Afghan Transit Trade Agreement to enhance trade between the two countries.