Tuesday, 23 January 2018

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Karachi, Tue January 23, 2018

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he Federal Board of Revenue (FBR) hopes a new agreement devised by Organization for Economic Co-operation and Development will enable it to access the assets of Pakistanis in Swiss banks.

The OECD provides a forum in which governments can work together to share experiences and

seek solutions to common problems. OECD has devised Multilateral Competent Authority Agreement (MCAA) on Automatic Exchange of Financial Account Information.

“MCAA is a multilateral framework agreement, with the consequent bilateral exchanges coming into effect between those signatories that Qile the subsequent mandatory notiQications and Article 6 of the MCAA speciQies the details of what information will be exchanged and when,” sources at the FBR told Customs Today.

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The sources said that the MCAA provided that subject to the applicable rules, partner jurisdictions will annually exchange the Qinancial account information on automatic basis with each other. There are 102 countries and jurisdictions which have committed to 2017 or 2018 for the automatic exchanges of information, of which 96 countries have already signed the MCAA. Pakistan has signed the MCAA on June 7, 2017 and has committed to exchange information from September 2018 onwards.

Export Section AFU performs good business of Rs10254m in 2nd quarter

DG Valuation Surriya to revise VR No 792/2016 on February 20

FBR starts survey to detect real income of jewelers in Lahore

Customs Export recovers Rs 6.1 million from M/s Yousuf Traders

Hyderabad Customs collects Rs765m more taxes than allocated target

The Export Section of the AFU did a good export business of Rs10254m | See pAge 02 |

DG Valuation has decided to revise the Valuation Ruling No: 792/2016 | See pAge 03 |

FBR has started a survey to detect the actual income of renowned jewelers shops | See pAge 04 |

Customs Exports has recovered evaded taxes and duties amounting to Rs 6.01 m | See pAge 14 |

MCC Hyderabad has generated Rs422.717million of Customs Duty & taxes | See pAge 16 |

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Govt appoints three PCSs officers as member Customs Tribunal Tuesday, January 23, 2018

ISLAMABAD: Federal government has issued a notification no: F.2(9)2015-AIV for appointment of three Pakistan Customs Service (PCS) officers of BS-20 as members of Customs Appellate Tribunal, in Lahore, Peshawar and Karachi.

According to the notification Qurban Ali Khan will perform his duties as Member Technical in Customs Appellate Tribunal Peshawar, while Saud Imran Ahmad who is currently performing his duties as Collector Multan will assumed the charge of his new responsibilities as Member Technical Customs Appellate Tribunal Lahore.

Islamabad

export Section Afu islamabad performs good business of Rs10254m in 2Q

ISLAMABAD

ISLAMABAD

M fAiZAn

tARiQ DeRYA

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he Federal Board of Revenue (FBR) has also taken strong exception to news reports appearing in a section of the press claiming the downward revision of real estate valuation for some areas, partially reversing the policy decision taken in 2016 for adoption of market value of real estate for the purposes of collection of federal taxes. As per details, the FBR has asserted that there is no deviation or reversal of the policy. The revision of rates in six big cities is meant only to remove anomalies in the existing valuation tables. The FBR rates for immovable properties were notified in August 2016. Before notifying the rates, the fair market value of all the areas was determined. Thereafter, the FBR rates were fixed after consultation with the stakeholders. The overall average of the FBR rates were fixed at a certain percentage of the fair market value with the intention to take the FBR rates equal to the fair market value gradually over a reasonable period of time. Various representations/complaints were received regarding anomalies in valuation tables of FBR.

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he Export Section of the AFU did a good export business of Rs10254million during 2nd Quarter of Fiscal Year 2017-18.

According to details given by sources of Export Section of the Air Freight Unit (AFU) Islamabad that the Export Section earned Rs2053.56million more export business during 2nd Quarter (October to December) FY17-18 than the export business done in 1st Quarter (July to September) FY17-18.

The sources told CT that, during 2nd Quarter FY17-18, the Export Section processed 17,730 Goods Decelerations (GDs). The Export Section generated business in value of Rs8200.44million during First Quarter FY17-18.

The exports have been Qlourishing at the Export Section of Islamabad for the last six months (July to December) FY17-18.

Sources added that, during 1st Quarter FY17-18, the popular exports consisted of fresh chilled meat, vegetables, surgical goods, leather goods, textile fabrics and a little amount of small consignments of different other items.

Telling about the comparative performance between 1st Quarter 2017-18 and 2016-17, the sources said that, during the month of September FY17-18, the Export Section

‘no reversal of policy on real estate valuation’

showed 38.17% of growth with extra value of Rs860million against the corresponding FY16-17. During September FY17-18, the Export Section earned Rs3112.14million of business while it did Rs2252.33million of business during the same period of FY16-17. During the month of August FY17-18, the Export Sec-

tion generated Rs2635.21million of business whereas it did the business of Rs1720.00million during FY1617. The Export Section did an extra business in value of Rs915million during FY17-18 against the same period of previous August FY16-17.

During July FY17-18, the Export Section earned a business of

Rs2453.09million while it did the export business in value of Rs2384.38million during the same period of corresponding FY16-17.

During said comparative period of July, the Export Section performed an extra business in value of Rs68.71million against the same period of previous FY2016-17.

iHc settles customs reference filed by M/s fertilizers (pvt) Ltd

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ISLAMABAD

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he Islamabad High Court (IHC) disposed of a customs reference Qiled by M/s Fertilizers (Private) Limited with directives to the Appellate Tribunal Inland Revenue (ATIR) to rehear the matter.

A division bench of the IHC comprising Justice Shaukat Aziz and Justice Mohsin Akhtar had reserved the decision on the matter after hearing

the Qinal arguments.

M/s Fertilizers had Qiled the case, challenging an announcement made by the ATIR through which it had sustained the decision announced by the department’s adjudication pertaining to the show cause notice issued to M/s Fertilizers for the recovery of outstanding tax.

Through both the reference, M/s Fertilizers Private Limited 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 respondent in the case.

Show-cause notices had been issued for the tax year 2013 in head of income tax under sections of Income Tax Ordinance, 2001.

The appellant had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard.

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M/s Bashir Pipe Industries moves SHC challenging SRO No 1035/2017 KARACHI: The Sindh High Court (SHC) has issued notices to the the customs officials and deputy attorney general on a constitutional petition filed by M/s Bashir Pipe Industries (Private) Limited against SRO No 1035/2017 over imposition of regular duty on imports of various items, including steel sheets and the similar goods.

While the hearing of the petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi, also directed them to file their para wise comments on the next date of hearing.

Earlier, counsel for the petitioner stated that he is engaged in the lawful business of import of steel sheets and other similar goods.

customs preventive foils bid to smuggle 2.4kg of Amphetamine to SA

Tuesday January 23, 2018

Karachi

Dg Valuation Surriya to revise VR no 792/2016 on february 20

KARACHI

M B RAnA

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he Pakistan Customs has recovered huge quantity of high quality amphetamine powder from the possession of a passenger during checking at Jinnah International Airport (JIAP) Karachi.

According to the details, the staff of the Pakistan Customs Preventive deputed at the departure of Jinnah International Airport (JIAP), after getting a tip-off intercepted a passenger named Imtiyaz Ali and asked him for getting checked the luggage as well as travel documents. During the search, the officers of the Pakistan Customs Preventive found approximately two Kilo and four hundred grams of high quality amphetamine powder hidden in the secret places of the bags at the departure of the Jinnah International Airport.

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pcA detects Rs 7.85m by M/s Jaffar Salman chemicals KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 7.58 million by M/s Jaffar Salman Chemicals, Karachi, it is learnt here.

Sources told Customs Today that M/s Jaffar Salman Chemicals imported a consignment of various type of chemicals, including paints and dying chemicals, and got it cleared from the PICT Karachi vide GDs on November 16, 2017 by paying customs duty at 8 percent after claiming the benefit of the SRO 566/2007. However, the subject items were correctly classifiable under the PCT 2807.4578 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/shortpaid Rs 7.58 million.

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KARACHI

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irectorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 792/2016 on February 20, 2018, it is learnt.

According to the details, Surriya Butt has said that the department was reviewing suggestions from various importers to set new prices of food supplements, (drinking Powder Milo, Bourn vita, Oval tine, Complan and extra). She said that some valuations, which were issued in 2016, were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international market. Sources told that a petition was submitted before the Customs Valuation in which change in prices of Foods supplements was requested.

Sources said that Valuation Ruling No: 792/2016 was issued on January 11, 2016. A meeting was held with the stakeholders on 8 January 2018. 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: 746/2015 on February 19, 2018, it is learnt. Talking with Customs Today Surriya Butt has said that the department was reviewing suggestions from various importers to set new prices of press fasteners snap fasteners, press studs and parts. 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 interna-

A meeting was held with the stakeholders on 8th Jan 2018. 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 items

court grants bail to suspect involved in smuggling

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KARACHI

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ustoms Taxation and AntiSmuggling Court Judge Syed Faiz Rasool Rashdi has granted interim pre-arrest bail to a suspect namely Saad Masud against surety bonds of Rs 200,000. The suspect was booked in a case of import/ sale of illegal/ non-approved mobile handsets and tablets in the name and style of Mobile Mania.

During the hearing, counsel for the suspect appeared and Qiled an application for bail. He argued that his client was innocent and was falsely implicated in this case, who was ready to face trail, however, he had apprehension of arrest, therefore, the court might grant him bail till the Qinal judgment the case. After the hearing, court granted him bail and issued notices to the customs department and special prosecutor for customs, directing them to Qile their para-wise comments on the next date of hearing. The court also

directed the suspect to appear before the court on the next date of hearing.

According to the prosecution, raid was conducted by duty director Federal Investigation Agency Cyber Crime Circle Karachi and recovered illegal/ nontype approved mobile handsets and tablets from suspect’s possession, investigation ofQicer informed the court that suspect was involved in import/ sale of illegal/ non-type approved mobile handsets and tablets in the name of style of Mobile Mania at shop no 2 California Plaza Karachi.

tional market. Sources told that a petition was submitted before the Customs Valuation in which change in prices of prices Press fasteners Snap Fasteners, Press studs and parts was requested.

Sources said that Valuation Ruling No: 746/2015 was issued on June 12, 2015. A meeting was held with the stakeholders on 5 January 2018. Importers were told to furnish the import invoices of the last three months.

tata Steel raises $1.3b via bond issue ata Steel has raised $1.3 billion (about Rs. 8,300 crore) through issuance of unsecured bonds in two tranches in the international markets to repay overseas debt and improve credit profile of the company. The bond issue comprised $300 million of 4.45 per cent unsecured bonds due on July 24, 2023 and $1 billion of 5.45 per cent unsecured bonds due on January 24, 2028.

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LHC seeks reply from FBR on notice issued to M/s Moiz Tuesday January 23, 2018

Lahore

LAHORE: Lahore High Court (LHC) has suspended the audit notice issued to M/s Moiz Textile Mills by the Federal Board of Revenue (FBR).

On Tuesday, Justice Shahid Karim of Lahore high Court (LHC) heard the appeal filed by M/s Moiz Textile Mills against the Federal Board of Revenue (FBR).

The counsel for appellant argued that Assistant Commissioner Inland Revenue (ACIR) has sent notices to the appellant M/s Moiz Textile Mills but under the law only commissioner Inland Revenue (CIR) is authorized to send audit notices.

govt to make payment of refund claims in february: Rana Afzal LAHORE

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he government will start payment of refund claims to textile exporters from February, said Minister of State for Finance and Economic Affairs Rana Muhammad Afzal Khan on Monday.

Addressing an emergent meeting of the Pakistan Hosiery Manufacturing and Exporters Association (PHMA) North Zone, he said the government was already making efforts to cut down the prices of electricity and gas, particularly for the textile sector.

Difference between imports and exports during the month of September last year was 51 percent but was narrowed down to 35

customs tribunal rejects appeal of seized Mitsubishi pajero case ustoms Appellate Tribunal has rejected appeal of seized Mitsubishi Pajero jeep case. The appeal was filed by Shahbaz Rafique versus Collector of Customs Appeals Lahore. Imran Tariq, member technical bench-II heard the arguments from both sides and decided the case with remarks that all documents produce by the party are rejected appeal is dismissed. According to the details, the staff of Customs ASO was intercepted a Mitsubishi Pajero jeep, the available person on seat introduced himself as Muhammad Shafique and claimed the owner of said vehicle.

The same vehicle were detained under section 2 (kk) for further investigation, during the complete examination from Punjab Forensic Science Laboratory the record not mach and same were seized under the relevant law. –CB Report

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percent in October and further reduced to 11 percent in November. “The government is making efforts to further improve this situation by encouraging exports,” he said.

He added, “Our top priority is to give maximum relief to the value added textile sector in order to bridge the gap between textile imports and exports in addition to creating more job opportunities for the youth.” Earlier, in his address Chairman PHMA Mian Naeem Ahmed Chaudhary congratulated Rana Afzal Khan on taking the portfolio of most important ministry of Finance and Economic Affairs. He also thanked Rana Afzal for pleading the cause of value added textile sector and amended that concessional electricity tariff should be made applicable to B2, B3 and B4 connections.

fBR starts survey to detect real income of jewelers in Lahore LAHORE

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he Federal Board of Revenue (FBR) has started a survey to detect the actual income of renowned jewelers shops of Lahore city.

Sources told Customs Today that during this survey, FBR teams have prepared a list of 300 jewelers who are earning in billions but avoiding to pay taxes willfully.

Sources said that these jewelers are using “parchi” system instead of bank channels for cash transactions. Sources further said that most of these jewelers are located on MM Alam Road, Garden Town, and Gulberg area. Sources said that the FBR received information that some jewelers of Lahore are using illegal channels for cash transactions. During initial stages FBR

fBR asked to expedite process of income tax exemption certificates

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he Progressive Group of businessmen and importers has demanded of the Federal Board of Revenue (FBR) to expedite process of issuance of Income Tax Exemption CertiQicates under sections 153 and 159 of the Income Tax Ordinance 2001 on imports. “When the tax is being collected in advance than why so much hurdles and delays in issuance of exemption certiQicates?” they questioned.

Progressive Group President Khalid Usman and Vice President Muham-

mad Arshad Chaudhry have said that a number of complaints had been received by the groups from its members that the department was not issuing certiQicates despite the fact that tax had been collected in advance. Unfortunately, they said that the department ofQicials demand more deposit of advance tax for issuance of certiQicate along with hefty bribes, which is sheer injustice and against the law. They said that non issuance of Income Tax Exemption CertiQicate is causing hardships for the businesses. –CB Report

teams faced many hurdles, while FBR teams also take excise department and Lahore Development Authority help to find those jewelers who are willfully avoiding to pay taxes according to their real income. Sources told that after completion of secret survey, FBR will compare their tax returns with

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their original income.

Sources told that Federal Board of Revenue is all set to take stern action against all those tax defaulters who are willfully avoiding to pay taxes. FBR is already adopted a comprehensive policy to achieve revenue collection target set for Fiscal Year 2017-18.

court issues arrest warrants of smuggler he Special Court of Customs Taxation and Anti-Smuggling has issued arrests warrants of smuggler, Mashuq Khan and ordered him to appear before the court within the given time period otherwise he will be declared as proclaimed offender.

According to the details, Mashuq Khan is a resident of muhallah Khwaja Ghreeb Nawaz Grid Station Road Vehari is involved in alleged smuggling. The Customs Court summoned the accused repeatedly but he did not appear before the court. Now, special judge of the court of Customs

Taxation and Anti Smuggling has issued a Qinal notice, directing him to appear before the court within 30 days otherwise he will be declared as proclaimed offender and his moveable or immovable property will be seized. A case was registered against the accused by the Multan Customs Intelligence. The Special Court of Customs Taxation and Anti-Smuggling heard 12 cases on Monday, including pre-arrest bail pleas Qiled by suspects.

Most of the cases were adjourned without any proceedings as the parties and lawyers concerned did not appear in the court. –CB Report

‘Burdensome customs procedures increase cost of business’

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LAHORE

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xcessive document requirements, burdensome customs procedures, inefQicient port operations and inadequate infrastructure and extra-ordinary delays in release of refunds all lead to additional costs and delays for exporters. Fed-

eration of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President and Regional Chairman Ch Arfan Yousaf expressed these views while talking to a delegation of Bahawalpur Chamber of Commerce and Industry (BCCI) at the FPCCI Regional OfQice in Lahore. Yousaf said that over the last two decades, there has been a drastic change in the world export markets, where the focus has shifted

from the traditional western countries to new emerging markets in Africa, Asia, Central Asia, China and India. Making trade between economies easier is increasingly important for business. Yousaf emphasized the need for improving various areas of ease of doing business, including improvement in business environment. Pakistan ranks at 147 out of 190 countries in stated index

whereas it ranks at the tail at 171 in cross border trading indicates that war footing policy measures are required for attracting global capital particularly in our export sectors. He showed his concern that despite the World Bank forecasted the 5.5 percent growth in Qiscal year 2017-18 while economy is facing the reduction in exports and pressure of external debt and liabilities.

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ustoms Appraisement will facilitate the faculty and students of the Punjab University, an oldest seat of learning, for conducting research on modern scientiQic lines and study the Federal Board of Revenue trade facilitation concept being implemented across the country. It was decided at a meeting between Vice Chancellor Punjab University Prof Dr. Muhammad Zakaria Zakar and Collector Customs Appraisement Lahore Muhammad Jamil Nasir at new campus.

Vice Chancellor said that faculty, research scholars, Phd, M Phil and master students of Institute of Business Administration and Institute of Administrative Science and Hailey College need proper forum for carrying out research and practical study of various policies of the Pakistan Customs.

Collector Jamil Nasir in principle agreed to facilitate the PU students in all sections of the model collectorate of customs Lahore and Qive Additional Collectors and 10 Deputy Collectors posted at various departments in city including at dry ports Mughal Pura, Prem Nagar, Thokhar Niaz Baig will provide all sorts of assistance whatever required academically to them.

About practical exposure, collector said that desirous faculty and students will be briefed on the spot how examination is conducted and how declaration of goods is checked and monitored. VC said that a high level joint meeting of the Deans, heads of the teaching departments concerned and Principal of

Hailey College will be convened shortly to work out a strategy how PU can utilize this offer to maximum extent for help building conQidence in students.

He thanked the Collector for this generous support and hoped in future Pakistan Customs will continue to patronize the students of the varsity. Earlier, Collector delivered special lecture to the students of Institute of Communication Studies PU and briefed them about the overall working of the department for their knowledge. He said that its principal function is to disperse industrial and commercial activities in the country for achieving a balanced regional growth and liquidate congestion at sea ports by speeding up customs and port clearance.

He highlighted the salient features

of the paperless and web based system which he added is one of the best procedures that enhanced the revenue through good governance and better control coupled with speedy clearance of goods. He said that experiment of minimal physical contacts between traders and customs proved most successful and yielded a 42 per cent growth in revenue from July-Dec 2017 of the collectorate. He said that the newly recruited staff was deputed for examination and assessment of goods which is another feather in the cap while dead wood has altogether closed to desk work and other non-lucrative assignments.

Jamil Nasir said that all examination and assessment halls are equipped with modern close circuit camera and all genuine grievances of the importers and exporters are redressed on the spot by the ofQicers concerned. He said on the special directive of the Member Customs Muhammad Zahid Khokar, all out efforts are made to facilitate the importers and exporters with zero tolerance on corruption. The brieQing was followed by the questions and answers and students asked a volley of questions depicting keen interest in direct o t interaction with collector. d e e r ns asir ag Later, In-charge Institute of o n i l t i c e m s all or Ja n t i c Communication Studies Dr. s e t l l s co den ustom Nosheena Saleem and Senc pu stu f e o h e t rat ate o s t t r i l c ior Faculty Member Dr. o i e t c l c l a f o lle odel c nal co Waqar Ch thanked the colm o i e t i h t d of s e Ad u v o lector for visiting the faci fi r d a at v e an ulty and sharing his exdr y osted L ahor t p a c g D 0 cludin pertise with students and and 1 , cit y in n i s nagar t presented a bouquet of foln m e e r m t p ra, or ts lower to the guest. depar h a l pu e all s

Mug provid por ts g will i a u i re d B z nia e r re q r v a e t h a k th o e wh istanc them of ass ally to c i m e ac ad

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Another amnesty scheme

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ccording to newspaper reports, the prime minister is weighing options to launch an amnesty scheme for the owners of the offshore companies. The step shows how the government is trying to stabilize financial affairs and bring back the black money to Pakistan from abroad. The prime minister is on the forefront to offer an amnesty scheme by persuading the well-to-do citizens to declare their assets in foreign countries. On another note, frequent changes in the rules and regulations have marred the shape of the whole taxation system. The government has discussed the issue on several occasions, but failed to reduce tax rates which could lead to the broadening of the tax base. However, the policymakers have so far failed to address fiscal challenges despite taking loans and grants from every external and internal source. The political government is giving knee-jerking response to the opposition parties which have launched a protest movement when budget for the next financial year is under process and the general elections are at hand. When it comes to the preparation of laws and schemes, it appears no one will be able to indulge in corruption, but every legal code fails at the implementation stage. Now the prime minister wants to introduce another amnesty scheme to allow Pakistanis to declare their assets stashed in foreign banks. But there is a dire need to keep the house in order before launching such a venture. The tax-to-GDP ratio is the lowest in Pakistan as compared to other countries in the region, but tax rates are the highest than any other country. As a result, citizens are forced to pay tax on everything indirectly. There is a need to bring wealthy individuals into the tax net. Unless the government machinery is rid of the black sheep, no reform programme can change the system. There are no two opinions on the sincerity of the prime minister with regard to the amnesty scheme, but the government should also prepare the ground to attract not only local but also foreign investment. Keeping the capital simply in banks is not a business, but wastage of time and money. According to Dr Ishrat Hussain, the former State Bank governor, Indonesia materialised up to $40 billion by offering its citizens an amnesty scheme, but Hussain should understand this is Pakistan where the government itself gets involved in violates the rules of law.

case of low fDi T

LAHORE

DR AftAB AfZAL

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he opposition parties from across the board have started a campaign to draw political mileage from the government mistakes ahead of the general elections. The country is facing threats from India, United States and Afghanistan on the external front and faces various challenges on the internal front.

The economy is gradually going on the downward trajectory as trade deQicits are piling up, foreign currency reserves are depleting and devaluation of the local currency has added insult to injury. However, the political forces, instead of coming on the

same page to Qight external and internal challenges are at warring path with one another. The victim of the internal strife is the economy. According to data released by the State Bank of Pakistan, foreign direct investment dropped by a whopping 71.5 percent in December, as the country received only $197.4 million during the month against $692.1 million during the same month of the last year. Keeping in view political chaos and unstable conditions, a majority of foreign investors has started following a policy of waitand-see until the general elections are held and a new government assumes the ofQice. The investors, who were building up trust in macroeconomic stability of the

country, prefer to stay away from launching any mega investment project. Some economists believe inconsistency in taxation policies, increase in cost of doing business and economic condition are not suitable for foreign investment. It is unfortunate that despite hiring highly qualiQied and experienced ofQicials, the taxation system still faces challenges and desperately needs structural reforms. Vietnam, Malaysia and Bangladesh are increasingly becoming attractive destinations for foreign investments despite these countries have limited consumer markets as well as natural and human resources. Despite political polarization, it is good omen that the country still attracted some in-

vestment from the United States, United Kingdom, Hungary and China. As a matter of fact, there is no dearth of capital even within the country, but due to failure of policies it is allowed to Qly to other countries. No one in the government circles bothered to understand why corrupt money of Pakistan is stashed in Swiss banks and invested in offshore companies. Once people are given opportunities, the white and black both kinds of capital will stay within the territories of Pakistan.

A new wave of political agitation is setting in and it is yet to be seen how the government is able to protect not only life and property of the people, but also foreign investment in the country.

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Pakistan Customs urged to release of consignment in different petitions KARACHI: An appellate bench of Sindh High Court (SHC) comprising Justice Aqeel Ahmed Abbasi and Justice Zulfiqar Ahmed Khan has ordered issuance of notices to respondent custom officials in a petition filed by United Tiles. The petitioner challenged the denial of exemption to the importers under SRO 497 of 2009.

The bench after hearing the counsel from Franklin Law Associates after hearing initial arguments ordered issuance of notices to respondents for Jan 18. The same bench also ordered issuance of notices for Jan 18 in a petition filed by Hill Weaving Factory which imported a consignment of artificial coated leather. The petitioner filed the GD which was rejected on the basis that importer deliberately mentioned the wrong PCT. The petitioner side maintains that SRO 492 is not applicable to them. The petitioner moved SHC for implementation of its verdict.

contraband electronic & cosmetic articles seized by customs intelligence Quetta

Tuesday January 23, 2018

National

court issues non-bailable warrants against suspect in gold, phones smuggling case

KARACHI

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he Directorate of Customs Intelligence and Investigation Quetta confiscated non-duty-paid electronic items including computer monitors, cables, LED TVs, non-duty-paid split air-conditioners, perfumes and cosmetics worth Rs6.50million. Sources told Customs Today that Director Customs Intelligence and Investigation Irfan Javed received a tip-off that some smugglers are trying to smuggle electronic goods from Quetta into different cities. He immediately constituted a raiding team. Team In-Charge Asif Ghafoor and others enhanced the surveillance on highway near Bara Market and started searching of the vehicles.

During the search operation, the team intercepted a truck bearing registration No: GSL-645 which was going out of the Quetta city. During the checking, the customs team recovered 30 sets of LED

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KARACHI

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ustoms Taxation and AntiSmuggling Court Judge Syed Faiz Rasool Rashdi has issued non-bailable warrants against absconding suspect namely Syed Muhammad Asim, who was booked for attempting to smuggle gold and cellular phones worth millions of rupees. During the hearing, the investigation ofQicer submitted a charge sheet against the arrested lady suspect namely Uzma Mehwish and others and informed that a team of Customs Preventive intercepted a woman passenger who reached Karachi through Qlight No FZ329 from Dubai. She was asked to show travel documents and the luggage.

During the search of the luggage, the Customs Preventive team found 377 gram gold attached with her body worth nearly two million rupees as well as 10 expensive cellular phones concealed in the travel bag and she also failed to produce any lawful documents of the smuggled goods. Therefore, ofQicials of the Customs Preventive took the smug-

gled goods into custody and Qiled a case against the woman. According to the challan, suspect Syed Muhammad Asim is still absconder in this

case. After his arguments, the court accepted the charge sheet against the suspect and issued non-bailable warrants against the absconder sus-

pect. The case was registered against the lady under section 2 (s) and 16, 156 (1) (8) (89) and 157 of the Customs Act, 1969.

indonesia to provide pakistani products market access ISLAMABAD

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TV, 30 pieces of German made nonduty-paid split air-conditioners, different types of computer cables, 100 bottles of perfumes and cosmetic items valued at Rs6.50million. The customs team seized all the articles and arrested two smugglers who were claiming the ownership of the smuggling items. They were identified as Munir Ali and Hamza Yaseen Khan. The Directorate of Customs Intelligence and Investigation Quetta registered an FIR against the held smugglers and started more investigation. Sources said Customs Intelligence and Investigation Quetta have already apprehended more than four smugglers.

he Indonesian government has unilaterally agreed to provide Pakistani products with deeper market access under the preferential trade agreement (PTA), which will help reduce the negative trade balance between the two courtiers, a government ofQicial claimed. “We have renegotiated with Indonesia the provision about reducing duties on 20 items to zero per cent,” the senior ofQicial of the Ministry of Commerce.

The Indonesian president is scheduled to arrive in Pakistan on Jan 25 to sign the amendments to the PTA, a source in the Foreign OfQice conQirmed. The ofQicial did not disclose the names of these products. He said the PTA was not prop-

erly negotiated and did not provide for any market access to Pakistani goods. “We have urged the Indonesian government to reciprocate market access for Pakistani products to which they have agreed,” the ofQicial said. According to the source, the products on which duty will be reduced include agricultural produce, manufacturing products and fruits. Pakistan and Indonesia signed the PTA in 2012. It came into operation in 2013. Pakistan’s exports to Indonesia posted a negative growth while imports rose by over $1bn in the past three years.

The senior ofQicial of the commerce ministry said that imports from Indonesia increased, but not in absolute terms. The increase was the result of a diversion of palm oil imports from Malaysia. However, overall bilateral trade also increased. Pakistan’s exports to In-

donesia were $196m in 2012-13.

Exports in the second year of the PTA (2014-15) marginally increased to $143m. However, exports fell to $130m in 2015-16. Similarly, export proceeds were recorded at $138m in 2016-17. But contrary to this, imports from Indonesia were recorded at $1.7bn in 2013-14. They edged up to $2.3bn in 2016-17, reQlecting an increase of 26pc.

Data shows Pakistan’s exports to Indonesia have dropped since the implementation of the PTA. Indonesia’s exports have almost doubled post-PTA. In August 2017, the Indonesian government expanded the quota and period for the import of Pakistani kinno. The period was changed to December-April from January-April. According to the source, the decision to offer a fresh duty reduction on 20 items will be in addition to compensating Pak-

istani exporters of leading products.

Pakistan already shared a list of products with the Indonesian government in the last three review meetings of the PTA. Islamabad has demanded that the tariff be reduced to zero per cent on two lines of textiles, knitted and woven fabric, garments, broken rice, mangoes, meat and meat products etc.

Asked about the advantages of the PTA, the senior commerce ministry ofQicial claimed that these agreements are required in today’s global trading environment where most of Pakistan’s competitors enjoy greater market access through such pacts. “We need to negotiate these better rather than shying away from them. Shying away from PTAs will limit market access to our exporters. We have acquired such expertise and software where we can run models of our trade with different negotiating options in PTAs and free trade agreements,” the ofQicial added.

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DC Adjudication Asma Hameed hears 20 cases Tuesday January 23, 2018

National Adjudication-ii recovers Rs 3.64m from M/s Bela g & company

FAISALABAD: Customs Adjudication Deputy Collector Asma Hameed heard 20 of smuggling and tax evasion cases involving duties and taxes.

Deputy Collector Asma Hameed heard cases of smuggled foreign origin wooden planks, crockery, shoes, auto-parts, plastic Dana, polyester yarn, Zeera, cloth, red chilies, baby lotion, Q-mobiles numbered 128 pieces, liquor numbered 18 bottles and skimmed milk, peanut and other miscellaneous items during the hearing.

Mahbooba Razzaq relinquishes charge of chief commissioner-iR

KARACHI

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ISLAMABAD

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ollector Customs AdjudicationII Tahir Qureshi has said that cases of more than 13 defaulters companies are under observation. Source told Customs Today that the Customs Adjudication-II served a final notice on a defaulter company named M/s Shahmeer Handicrafts and recovered Rs 3.64 million from M/s Bela G & Company Karachi. M/s Shameer Handicrafts was involved in the tax evasion. The company imported wooden pieces on August 17, 2017 and used the wrong PCT heading. After a careful investigation, the Customs Adjudication-II issued a final notice to the company to clear the outstanding amount of Rs 4 million. Source said that another company M/s Bela G & company Karachi got cleared a consignment of some brass show piece on November 17 and evaded tax amount of Rs 3.64 million.

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intelligence officer imtiaz Ahmad khan to retire on 11 June r. Imtiaz Ahmad Khan, a BS-16 Intelligence Officer, Directorate of Intelligence and Investigation-FBR, Regional Office, Lahore shall stand retired from Government service on 11.06.2018. He is going to retire on attaining the age of superannuation. Meanwhile, Mr. Abdul Rahim Khan, a BS-16 officer of On attaining the age of superannuation, Senior Preventive Officer (BS16), Model Customs Collectorate (Preventive), Karachi shall stand retired from Government service on 14.02.2018. He is going to retire on attaining the age of superannuation under the No. 0083-C-III/2018. –CB Report

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s. Mahbooba Razzaq, a BS21 ofQicer of Inland Revenue Service has relinquished the charge of the post of Chief Commissioner-IR, Regional Tax OfQice, Rawalpindi w.e.f 18.01.2018 and assumed the charge of the post of Director General (Research and Development), Federal Board of Revenue (HQ), Islamabad on the same date. She relinquished charge in pursuance of Board’s NotiQication No. 0103-IR-I/2018, dated 17.01.2018. Meanwhile, The Central Selection Board (CSB) approved promotions of ofQicers in Grade-21 and Grade-20. OfQicers of Pakistan Customs Service (PCS) including ZulQikar Malik, Sarfaraz Ahmad War-

raich, Naeem Ejaz Qureshi, Ziauddin Wazir, Tariq Huda, Wasif Memon, Mujtaba Memon and Saud Imran are promoted to Grade-21.

Moreover, PCS ofQicers including

Iqbal Bhawana, Imtiaz Ahmed, Wajid Ali, Ahmed Rauf, Imran Khan, Akhtar Hussain, Adnan Akram, Zeba Azhar, Khalid Hussain, Kamran Azam, Mumtaz Khoso, Nadeem

Memon and Saqib Saeed are promoted to Grade-20. Sources said there might be a large scale reshufQling on top level of Pakistan Customs in coming days.

Smuggling of hashish & tyres frustrated by customs intelligence karachi T

KARACHI

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he Directorate of Customs Intelligence and Investigation Quetta conQiscated a big quantity of hashish and different kinds of tyres worth Rs6.58million. Sources told reporter that Director Customs Intelligence and Investigation Quetta Irfan Javed received a tip-off that some smugglers are trying to smuggle hashish and non-duty-paid tyres from Quetta into different cities.

He immediately constituted a raiding team. Team In-Charge, Preventive ShaQiq-ur-Rehman and others, enhanced surveillance on the Quetta Highway and started searching vehicles.

During the search operation, the team intercepted a truck bearing registration No: QBJ-2547 which was going out of the Quetta city.

During the checking, the customs team recovered 25kg of hashish behind the fuel tank and 100 nonduty-paid tyres. The customs team seized all the items and arrested two smugglers including a driver. The

Directorate of Customs Intelligence and Investigation Quetta registered an FIR against the smuggler and started investigations. Smugglers were identiQied as Zahid M Khan and Muneer Mohsin Wazeer. Earlier, the

Directorate of Customs Intelligence and Investigation Quetta conQiscated a large number of mobile phones and vehicles’ batteries worth Rs6million and arrested three smugglers of Waheed Pathan group.

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Customs Court approves physical remand of suspects in diesel smuggling case KARACHI: The Customs Taxation and Anti-Smuggling Court has sent suspects namely Muhammad Ameen, Muhammad Hussain and Ahmed Ali to the Customs Department on physical remand. The suspects were booked for attempting to smuggle 25,000 liter Iranian high speed diesel.

During the hearing, the investigation officer produced the suspects before the court and informed that the staff of the Anti-Smuggling Organization intercepted a Hino truck and recovered 25,000 liter diesel. During the search, the suspects were asked to produce lawful documents of the item, but they failed. Therefore, the officials seized the diesel and arrested the suspects.

Afu earmarked the highest revenue target for Dec. in seven months ISLAMABAD

tARiQ DeRYA

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he Customs Air Freight Unit (AFU) Islamabad was assigned the highest revenue collection target for the month of December FY17-18 under the head of all duties and taxes during first seven months of Financial Year 2017-18. According to details explained by Wajid Zaman, Deputy Collector, Air Freight Unit (AFU) Islamabad, while talking to Customs Today that, during the month of December FY17-18, the AFU was assigned Rs679.94million under the head of all taxes. He told CT that the AFU has been assigned a revenue collection target of Rs639.43million under all the heads for the month of January FY17-18.

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The AFU was assigned Rs611.6million under the same head for the month of November FY17-18 while it was allocated Rs509.56million under the same heads for the month of October Fy17-18. He told the correspondence that, during the month of September FY17-18, the AFU was earmarked Rs553.14million under the head of all taxes while it was assigned Rs614.75million under all the heads during the month of August FY17-18. The Deputy Collector AFU further told CT that, during the month of July FY17-18, the AFU was earmarked a revenue collection target of Rs423.68million. The AFU has been assigned Rs275.5million as Customs Duty for the month of January.

The AFU was assigned Rs244.53million of Sales Tax, Rs119.06million as Income Tax (IT) and Rs0.34million of Federal Excise Duty for said month of January FY17-18.

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customs export recovers Rs 6.1 million from M/s Yousuf traders

fSt seeks record on complaints filed by fBR employees KARACHI

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he Federal Service Tribunal (FST) issued directives on submission of record in a couple of service matters and dated in office the hearing during second of January. A division bench of the FST comprising Member, Rafique Shah and Dr Nazir were hearing the cases filed by Attique Ahmed Abbasi, Zeeshan Zafar, and Muhammad Rafique. The bench adjourned the hearing of these cases for coming days. The appellants had submitted complaints about their due promotion which was not yet granted by the department. They have prayed the tribunal to issue necessary directives to the board in this regard.

The bench had dated in office hearing of these cases during the last hearing and had asked the board to submit reply in the cases filed by Muhammad Arshad Rahim, Muhammad Arshad Rahim and Ejaz Ahmed Bajwa. Federal Service Tribunal issued fresh directives submit relating record before the bench in cases pending before the tribunal since months.

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he Customs Exports has recovered evaded taxes and duties amounting to Rs 6.01 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 Yousuf Traders Karachi availed undue beneQits and concessions by importing different consignments and misusing the SRO 467.

The company founded involved in a tax evasion of Rs 3.56 million.

After detecting tax evasion, the Customs Exports issued them with Qinal notice on December 29, 2017 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s Yousuf Traders Karachi deposited the evaded amount in the ofQicial account of the Customs Exports on January 8 ,2 018. On the other hand, the management of the M/s Ziaur Rehman associates Karachi also cleared Rs 2.45 million of taxes and duties.

Sources said the M/s Zia ur Rehman associates Karachi also availed un-

Tuesday January 23, 2018

due beneQits and concessions and avoided paying taxes according to the customs bylaws.

The Customs Exports authorities issued them with a Qinal notice on December 15, 2017. After receiving the notice, the management Zia ur Rehman associates Karachi de-

posited the evaded amount of taxes.

Meanwhile, The Customs Export has recovered evaded amount of taxes and duties of Rs 7.95 million from defaulter companies which were issued with notices to pay the outstanding dues and issued third show cause notice in 2018.

‘govt aiming for pro-industry budget for next fY’

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pecial Assistant to Prime Minister on Revenue Haroon Akhtar Khan has said the government is aiming for a businessman-friendly and pro-industry budget for the next fiscal year.”We want the next budget to be a reflection of our intent to improve the areas of economy which have not kept up with growth in other sectors, as well as the aspiration and expectations of the business community which has always reposed confidence in our government to provide them a level-play-

ing field to boost their businesses,” he said while talking to a delegation of the Rawalpindi Chamber of Commerce & Industry which called on him at the FBR House. The delegation was led by President RCCI Zahid Latif Khan, SVP Mohammad Nasir Mirza, VP Khalid Farooq Qazi and formers presidents of the RCCI, including Sohail Altaf, S.M. Naseem and Syed Asad Mashadi.

Former SVP RCCI Rashid Waien and Director RIET-Islamabad Stock Exchange Masoom Akhtar were also present. The delegation congratulated Haroon Akhtar Khan on his elevation as the Federal Minister, calling it a very welcome de-

velopment given his experience and expertise on the revenue side as well as his deep understanding of the day-to-day problems and issues confronting the business community. They said the business community and chambers were keen to work with him to broaden the tax base and add more people to the tax net. Haroon Akhtar Khan appreciated the gesture of the delegation and invited the Rawalpindi Chamber and other trade and business organisations across the country to come up with solid and practical proposals and recommendations for incorporation in the next financial budget to sus-

tain and further accelerate the pace of growth and economic activity in the country. He said the Prime Minister was keen to give maximum possible incentives and concessions to the business community in the next budget and his team at FBR was working on those lines to make the next budget more favourable for the business community. He said the government was keen to further accelerate the pace of economic growth and already several suggestions and propositions were being considered and examined to give maximum relief and incentives to the business community.

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China says US curbs on tech exports to it only contributes trade deficit

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BEIJING: China’s commerce ministry said the United States’ restrictions on tech exports to the country will contribute to the trade deficit it has with China.

The United States’ 301 investigation is harmful to the global trade framework, China’s commerce ministry spokesman Gao Feng said at a regular news briefing. Gao added that China would take all necessary means to protect rights of Chinese firms with regards to the 301 investigation.

Tuesday January 23, 2018

Russian customs prevents 1.5 tonnes of coins from estonia

processed food exports earn $2 b in 9 Months TEHRAN

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foreigner of unspeciQied citizenship tried to take 25-ruble and 10-kopek coins with a total worth of 4.19 million rubles or approximately 61,200 euros out of Russia, Interfax reported, referring to the Kingissepp customs ofQice. “The 25-ruble coins depicted the emblem of the football World Cup and the text “FIFA World Cup Russia 2018 and the total weight of the coins was 1.5 tons. The 10kopek coins depicted Saint George on horseback while killing a dragon and the total weight of those coins was 7.5 kilograms,” Interfax said.

The owner of the coins told the Russian customs ofQicials that they bought the coins to invest them and planned to store them in Tallinn and realize them with a beneQit after the start of the summer World Cup. The

iran to begin rebar exports to uk ran’s Esfahan Steel Company is ready to ship its first rebar cargo to the UK, a company source told S&P Global Platts. The deal for 5,000 tons at $505/ton FOB southern port was concluded in October. The cargo is due in late January 2018 and is now ready to be shipped,” the company source said on Tuesday. Additional contracts are nearly finalized for the same destination, while another cargo is under negotiation for Scotland,” he added.

This comes after ESCO became the first Iranian steelmaker to obtain UK Cares certification, confirming its billet and rebar conforms to BS ESCO is Iran’s largest producer of long products and the only Iranian steel producer using blast furnaces of which it has three.

However, one of the furnaces (with 1 million tons/year capacity) is idle as a result of low demand in the domestic market. –CB Report

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owner had acquired them by buying them ofQicially from Moscow banks.

An administrative proceeding was launched against the foreigner on the basis of the section concerning illegal currency transactions as the man should have presented documents concerning the purchase of the coins but he did not have the documents.

Meanwhile, The Russian Federation has revealed that its historic longing for Ceylon Tea has not wavered and even vowed for bigger trade with Sri Lanka, calling to dispatch a strong delegation to the trade meet scheduled in Moscow this year, according to Sri Lankan Minister of Industry and Commerce Rishad Bathiudeen.

Air cargo avoids delays during uS customs computer outage

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he CBP system outage no doubt wreaked havoc for many passengers traveling on a busy holiday. For supply chains, the outage was apparently short enough that air freight and cargo were largely unaffected by the delays. The outage lasted from about 7:30pm to 9:30pm on New Year’s Day. “CBP took immediate action to address the technology disruption,” an agency spokesper-

son told Supply Chain Dive. “All airports are currently back on line.”

Miami International Airport was affected by the computer outage, creating long lines at customs.

However, no cargo was significantly delayed, Greg Chin, Communications Director for the Miami-Dade Aviation Department, told Supply Chain Dive. Miami’s airport is one of the busiest in the world for cargo traffic. –CB Report

ran exported about 1.37 million tons of processed food products worth more than $2.07 billion in the Qirst nine months of the current Qiscal year (March 21-Dec. 21) to register a 13% and 0.5% growth in weight and value respectively compared with the similar period of last year. SecretaryGeneral of the Federation of Iranian Food Associations Kaveh Zargaran also said processed food exports accounted for close to 6.6% of Iran’s total non-oil exports over the period. Chocolate with around $188 million, cheese and dry whey with $154 million and yoghurt with $141 million were the main processed food shipped to overseas destinations, together accounting for 23% of the value of exports, ILNA quoted Zargaran as saying. The ofQicial added that dairy products comprised 30% of the exports with more than

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321,000 tons worth $620 million, showing a 5% and 9% growth in volume and value respectively year-onyear. Zargaran, who is also the chairman of Tehran Chamber of Commerce, Industries, Mines and Agriculture’s Agriculture Commission, explained that chocolate and confectionary, tomato paste and fruit juice and concentrates with $414 million, $139 million and $99 million worth of exports respectively were the top three exported groups over the period. Potato products with $74 million and 153% YOY rise, and Qlour products with $57 million and 886% YOY upsurge saw the highest growth in exports.

Zargaran added that livestock, poultry and Qish feed exports saw a 97% hike to stand at $57 million during the period. On the import of processed food products, he said close to 3.4 million tons worth more than $3.46 billion were imported to Iran during the same period to register a 4% and 17% growth in weight and value respectively compared with the corresponding period of last year.

‘turkey’s growth expected at 6.7%’ he World Bank predicts that the global economy will grow 3.1 percent this year, which would be its best showing in seven years. The United States, the world’s largest economy, is expected to receive a boost from the $1.5 trillion tax cut package Congress approved last month. The World Bank on Tuesday upgraded its global growth forecast for 2018 by 0.3 percentage point from the projection it made in June. It is also forecasting solid growth of 3 percent in 2019 and 2.9 percent in 2020, after similar 3 percent expansion in 2017. The U.S. economy will grow 2.5 percent this

year, the World Bank now predicts, up 0.3 percentage point from its June estimate. Its forecast shows U.S. growth slowing to 2.2 percent in 2019 and 2 percent in 2020. Aided

by Qiscal and monetary policies that led to “a much stronger-thanexpected rebound”, Turkey’s economic growth projection for 2017 was revised up to 6.7 percent from 4 percent, the World Bank Group said.

“The signiQicant rebound in Turkey’s growth last year to 6.7 percent, from 3.2 percent in 2016 was supported by Qiscal stimulus aimed at expediting recovery from the economic repercussions of the 2016. –CB Report

philippines to move second phase of tax reform plan

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MANILA

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hilippines is to take forward its tax reform agenda in January, with a second package of proposals to be tabled before Congress, after the Qirst package was endorsed with some vetoes by President Rodrigo Duterte. We are very pleased

that the legislature passed the TRAIN bill. The President signed it into law although there are some provisions that he vetoed. We are moving forward with the implementation of the tax reform,” Carlos Dominguez, the country’s Finance Secretary, said during the recent inter-agency Development Budget Coordination Council meeting. We are going to submit to Con-

gress the package two of the comprehensive tax reform plan in January 2018.” He said the Department of Finance scored its Qirst major legislative victory for the Duterte administration and the Filipino people in 2017 with the approval and signing into law of the TRAIN Bill, which will provide income tax cuts for the majority of Filipino taxpayers. Dominguez said 99 percent of

the country’s population will beneQit from the TRAIN BIll, with salaried employees and self-employed individuals earning a taxable income of PHP250,000 (USD4,980) per year exempted from paying the personal income tax (PIT). Other taxpayers in higher income brackets will also get to enjoy signiQicant PIT cuts, except the ultra-rich or those earning PHP8m a year and above.

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India plans to overhaul 300 dry ports NEW DELHI: The government plans to overhaul 300-odd dry ports in the country to resolve infrastructural constraints faced by exporters and importers to give a fillip to India’s foreign trade.

The commerce ministry has set the ball rolling to assess the laws governing dry ports, their subsidies and funding patterns, and streamline them with other ports in accordance with global practices. “We are planning a comparative assessment of regulatory mechanism for dry ports including laws governing their functioning,” an official said on condition of anonymity.

Shipping activity at port Qasim ight ships MSC Sindy, MSC Mars, X-Press Makalu, Norstar Invictus, Agios Nicolas, Everich-6, Golar Bear and Gao Chang-2 scheduled to load/offload containers, Crude oil, Soya Bean, LPG, LNG and Palm oil were arranged berthing at Qasim International Container Terminal, FOTCO Oil Terminal, Grain & Fertilizer Terminal, Engro Vopak Terminal, Pakistan Gasport Consortium Terminal and Liquid Cargo Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA). Meanwhile two more ships BW Danube and Engiadina with Diesel oil and Steel Coil also arrived at outer anchorage of Port Qasim during last 24 hours. Berths occupancy was observed at the port at sixty five percent on Monday where a total of eleven ships namely, MSC Sindy, MSC Mars, XPress Makalu, Era-S, Norstar Invicturs, Kong Que Song, Agios Nicloas,

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Ports & Shipping

overloaded ports weigh down Vietnam

Russia boosts goods import from no ciS countries to $202.3b in 2017 ussia increased imports of goods from non-CIS countries in 2017 by 24.3% year-on-year to $202.3 billion, the Federal Customs Service said on Monday. Imports of textiles and footwear surged 27% in December 2017 to $1.1 bln. Imports of food products and raw materials for their production grew by 16.6% to $2.5 bln, products of engineering industry – by 12.3% to $11.3 bln. Imports of chemical products rose by 4.5%, to $3.5 bln, the report says.

Imports rose by 1.7 times for vegetables, 1.5 times for tobacco, 46.2% for vegetable oil, 45.1% for grain crops, 39.8% for fruits, 27.6% for fish, 23.3% for dairy products, and 22.2% for meat and byproducts. Imports of chemicals grew on account of rising procurements of organic and nonorganic chemicals by 15.1% and pharmaceuticals by 5.5%Import declined in value terms by 2.5% for polymers and rubber and by 1.9% for soap and synthetic detergents. –CB Report

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HANOI

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ietnam’s over-burdened shipping infrastructure is taking a big toll on freight operations, with the peak port authority estimating the industry loses US$2.4 billion a year because it can’t reach the country’s best docks.

Cai Mep International Terminal (CMIT), 50 kilometers southeast of Ho Chi Minh City, the nation’s commercial hub, provides deep-water access for larger vessels with capacity of 18,000 20-foot equivalent units (TEUs). But shippers prefer to use the far smaller Cat Lai Port, which is closer to the manufacturing districts of Binh Duong, Ba Ria-Vung Tau, Dong Nai and Ho Chi Minh City itself. Containers must be ofQloaded onto more compact vessels at sea or transshipped through larger Hong Kong and Singapore ports so they can access Cat Lai, which creates delivery delays and hikes costs.

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Tuesday January 23, 2018

add 30% to the cost of a container.

“If goods can be shipped with large vessels, goods owners can save US$200-US300 per container compared with small vessels,” Vietnam Port Association secretary general Ho Kim Lan told VietnamNet Bridge.

The association says the estimated losses of US$2.4 billion a year are based solely on the industry’s inability to access CMIT, which is operating well below its capacity while

congestion steadily builds at Cat Lai. There is no effective road or rail infrastructure linking CMIT to Ho Chi Minh City. Excess capacity exists at ports in Da Nang in the central region and Haiphong in the north, but they are too distant to serve Ho Chi Minh City. Haiphong’s new Lach Huyen port, due to be completed in 2020, has only been designed to accommodate container ships of up to 8,000 TEUs.

china exports imports growth slow White Purl, Everich-6, Golar Bear and Gao Chang-2 are currently occupying PQA berths to load/offload Containers, Rice, Crude Oil, General Cargo, Soya Bean, LPG, LNG and Palm. Cargo throughput during last 24 hours stood at 161,875 tonnes comprising 101,600 tonnes import cargo and 60,275 tonnes export cargo inclusive of containerized cargo carried in 3,708 containers (TEUs), (2,011 TEUs imports and 1,697 TEUs exports) was handled at the port. Two ships, Container Vessel MSC Mars and General Cargo carrier Kong Que Song sailed out to sea on Tuesday morning, while two more ships, MSC Sindy and X-Press Makalu are expected to sail on same day. –CB Report

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hina’s exports and imports growth slowed in December after surging in the previous month, adding to signs of ebbing economic momentum as the government extends a crackdown on Qinancial risks and factory pollution. A synchronised uptick in the global economy over the past year has been a boon to China and much of trade-dependent Asia, with Chinese exports in 2017 growing at their quickest pace in four years.

The sharp December imports slowdown, however, is raising concerns that the world’s secondbiggest economy faces domesticdemand pressure as authorities turn off cheap credit and restrict speculative Qinancing. We have since long expected China’s domestic de-

mand and imports to slow in 2018 on gradually tighter monetary and Qinancial policies and slower real estate activity momentum”, said Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong.

In December, exports rose 10.9% from a year earlier, beating analysts’ forecast of a 9.1% increase, but cooling from a robust 12.3% gain in November, the General Administration of Customs said yesterday.

Imports grew at an even slower pace of 4.5% year-on-year last month, the weakest since they rose 3.1% in December 2016, and way below forecasts of 13% growth. Despite the December slowdown, the overall picture for 2017 underscored strong global appetite for Chinese products ranging from electronics, household appliances and a vast array of consumer goods.

Exports from the Asian giant for the full year rose 7.9%, the fastest

rate since 2013, while imports also gained a sizzling 15.9% – the best since 2011, thanks to insatiable Chinese demand for commodities.

But customs spokesman Huang Songping yesterday cautioned that strong growth in foreign trade would be difQicult for China to maintain, adding that half of the growth rate in the value of imports last year was from higher prices. The weaker imports in December backs recent data showing a slowdown in economic growth is underway, with domestic demand hit by the government’s intensiQied war on polluting factories and a crackdown on debt risks. Commodities imports were mixed, with copper purchases down 8.2% yearon-year by volume in December while coal and natural gas imports were up.

Iron ore imports for the year hit a record high of 1.075bn tonnes. Economists estimated that China’s import growth in December was entirely due

to prices, with volumes down yearon-year. Growth of China’s imports of electronic and high-tech products year-on-year slowed to single digits from over 15% the previous month, customs data showed. We estimate that import volumes fell 6.8% in seasonally adjusted m/m terms last month. Although the trade data are often volatile, this latest decline the largest in almost two years is a sign that domestic demand may have weakened at the end of last year,” Capital Economics Senior China Economist Julian Evans-Pritchard wrote in a note. The import slowdown caused China’s December trade surplus to surge to $54bn, the highest since January 2016, compared to forecasts for a $37bn surplus in December from November’s $40.21bn. On the monetary policy front, most analysts expect subdued inQlation expectations to keep the People’s bank of China from tightening too hard.

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SBP releases Q1 report for FY18 KARACHI: State Bank of Pakistan (SBP) has released its First Quarterly Report for FY18 on the State of Pakistan’s Economy. According to the Report, preliminary data on key macroeconomic indicators suggest that growth momentum remained strong in the first quarter of current fiscal year.

Several coincident indicators point to a further strengthening of aggregate supply and demand in the economy. According to the report, with the exception of cotton, other major kharif crops achieved or surpassed the FY18 targets.

Tuesday January 23, 2018

Business

pM rejects nominees for nAB prosecutor general ISLAMABAD

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rime Minister Shahid Khaqan Abbasi has rejected a list of nominees for the post of the prosecutor general of the National Accountability Bureau.

PM Abbasi rejected a summary of Qive nominees sent by NAB Chairman Justice (retd) Javed Iqbal. Instead, the prime minister proposed three separate names for the vacant post. However, NAB chairman instead returned the PM’s directive saying the appointment should be made from the Qive nominees. Under the law, the appointment is made by the prime minister after consulting

foreign currency Account Scheme KARACHI

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with NAB chairman. The development maintains a deadlock between the government and the NAB chairman on the appointment of prosecutor general of the accountability

pepco asks nAB to file power theft reference against nepra member

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he Foreign Exchange Rates Committee of Financial Markets Association of Pakistan issued the following Base Rate, here on Monday.

FOREIGN CURRENCY ACCOUNTS SCHEME RATES BAY BID MAXIMUM RATES FOR PAYMENT OF INTEREST BY ETHERIZED DEALERS R A T E S US DOLLARS VALUE 22-01-18 For 3 months and over but less than 6 months 1.4947% PA 2.2447% PA For 6 months and over but less than 12 Months 1.6755% PA 2.4255% PA For 12 months.

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watchdog. Last month, NAB chairman has sent a list of Qive lawyers to the government to pick from. He proposed the names of Mudassir Khalid Abbasi, Shah Khawar, Syed

Asghar Haider, Fasih-ul-Mulk and Nasir Saeed Sheikh.

However, the federal government seeks to nominate a lawyer of its choice as the anti-watchdog seeks to investigate several high-proQile corruption cases including those involving the family of former prime minister Nawaz Sharif.

Earlier this month, the Supreme Court has taken notice of delay in the appointment of the prosecutor general, and instructed the government to fullfill all vacant seats.

A bench headed by Justice Gulzar Ahmad had on January 8 directed the attorney general to ascertain the government stance regarding delay in the appointment. The court was informed that the prosecutor general would be appointed within a week.

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GAWADAR

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subordinate company of the Power Division has asked the National Accountability Bureau (NAB) to Qile an electricity theft reference against a member of the National Electric Power Regulatory Authority (Nepra) appointed by the federal cabinet last week.

In a letter to NAB, the Managing Director of Pakistan Electric Power Company (Pepco), Musaddiq Ahmed Khan, alleged that Rehamatullah Baloch and

another senior ofQicial of the Quetta Electric Supply Company (Qesco) were involved in abetting electricity theft worth Rs296 million, including Rs163 million government taxes. The Pepco has referred the case of corruption in power theft against Qesco Chief Executive OfQicer (CEO) Rehamatullah Baloch for appropriate action over his failure to take action against subordinates in illegal power supply to a steel mill.

Balochistan had recommended Baloch as member power regulator and the federal cabinet had recently approved his appointment as the new member to represent Balochistan. Rehmatullah

Baloch is still working as the Chief Executive OfQicer (CEO) of Qesco despite his appointment as member of Nepra having been approved by the federal cabinet last week. Others named in the reference with Mr Baloch include Baz Muhammad, the Manager of Operations of the Qesco, besides two private consumers, including a steel mill owner.

Mr Baloch said that he had in fact ordered the raid after the discovery of the electricity theft in which he was now being unnecessarily dragged, adding that such issues pertained to the level of sub-divisional ofQicers (SDOs) and not chief executives.

pakistan’s foreign reserves fall $2.45 Billion KARACHI

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he State Bank of Pakistan (SBP) reported on its foreign exchange reserves amounted to $13.69 billion on Jan 12, down $2.45bn from $16.14bn at the end of June 2017. The dip comes despite $2.5bn borrowing from global bond markets at the end of November. Static remittances, increasing trade deficit, insufficient rise in exports and relentless build-up of external debt are some of the reasons behind the softening position in the external account. During the current fiscal year, Pakistan has also raised about $1bn through commercial short-term borrowing. In view of a rising trade deficit coupled with slow growth in exports, the current account deficit has emerged as the biggest problem for economic managers. In the first five months of the current fiscal year, it rose 91 per cent year-on-year to $6.4bn. The current account deficit hit a record high of $12.4bn in 2016-17, which hurt the external sector and put enormous pressure on the government to build reserves through more borrowing. Going by the current trend, analysts believe the deficit can hit another high by the end of this fiscal year.

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Shehbaz to appear before nAB over housing society scandal ISLAMABAD

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unjab Chief Minister Shehbaz Sharif will appear before the National Accountability Bureau (NAB) on Monday (tomorrow) to answer the queries regarding the alleged misuse of authority in the award of contracts in Ashiana-e-Iqbal housing projects.

According to reports, CM Shehbaz will reach the NAB office Lahore at 10 am and record his statement before the anti-graft body.

The Online quoted the sources as saying that the NAB has prepared a questioning sheet that consists of 24 questions regarding the housing projects. The agency further stated that NAB investigation team has completed all homework regarding the scam. Moreover, the NAB has also completed the initial

investigation of this scandal and it revealed in initial investigation that mega corruption of billions of rupees had done in this. The role of house building finance corporation head would also review in this scandal.

It may be mentioned that a team of bureaucrats and legal experts was formed earlier to formulate the queries raised by the NAB in the notice sent to the CM. The NAB’s decisions came fol-

lowing the complaints regarding an ‘illegal deal’ between the companies overlooking the affairs of the Paragon Housing Scheme and the Punjab Land Development Company (PLDC), which allegedly involved 3,000 kanal of government land. Earlier, the bureau had asked for the complete details of both the Ashiana housing scheme and the Paragon housing society for an investigation into the illegal housing schemes matter. It had

alleged that over Rs1.2 billion loss has been caused to the national exchequer by the award of contracts in violation of the prescribed rules and regulations. The aim of the Ashiana housing scheme – an initiative of the Punjab government, was to provide economical and adequate residential facilities to the people with low-incomes and the government had invested Rs2 billion while acquiring 672 kanal Baba Noor Shah shrine.

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Russia Linseed exports are below record this season MOSKOU: Russia stepped up linseed export shipments in November 2017/18, when it supplied 92.8 KMT to foreign markets against 44.3 KMT in the previous month and 81.1 KMT in November 2016/17. Although November’s exports hit a high, the figure for the first three months of the 2017/18 season (218.2 KMT) is down 24.6% from the same time last year, when Russia shipped abroad a record 289.5 KMT of linseed.

However, exports stay at quite a high level, reports UkrAgroConsult.

The range of export destinations of Russian linseed has not changed significantly in the 2017/18 season. As before, the commodity is shipped mostly to European countries (64% of total exports), Turkey (11%), Vietnam (10%) and China (10%). The first months of the season witnessed a rise in exports to Vietnam and China. At the same time, purchases by Turkey, which is a major importer.

new law in the offing for effective resolution of trade disputes

Tuesday January 23, 2018

Chambers

SSp group asked to bring investment projects to pakistan

ISLAMABAD

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he Trade Dispute Resolution Organization (TDRO) gave a detailed presentation on the draft law of Trade Dispute Settlement Act which envisaged formation of a Trade Dispute Resolution Commission (TDRC) that would work under the administrative control of Ministry of Commerce with same powers as vested in a Civil Court for swift and effective resolution of disputes relating to the export and import of goods and services including import and export through e-commerce.

Speaking at the occasion, Sajjad Hussain, Executive Director General, TDRO said that the purpose of drafting a law on trade dispute settlement was to

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provide for the establishment of a comprehensive regime in Pakistan for the swift and effective resolution of trade disputes. He said making such law was of paramount importance for better promotion of trade in Pakistan, protection of all trading interests and improvement of Pakistan’s standing internationally. He said the law would help in efficient and effective resolution of international trade disputes through negotiations, mediation, arbitration, determinations, alternative dispute resolution mechanisms and referral of disputes to Commercial Benches that would be set up under the proposed Commission. He said foreign parties would be given video conferencing facility to participate in trade dispute process. He said efforts were being made to make arrangements for acceptance of TDRC decisions in foreign countries.

ISLAMABAD

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heikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry has called upon the Strategic Swiss Partners (SSP) Group to bring business and investment projects to Pakistan as Pakistan was emerging as a lucrative destination for business and investment. He was talking to Dato Ahmad Hisham Zainal, Partner Investments of Strategic Swiss Partners based in Malaysia.

Sheikh Amir Waheed said that CPEC has enhanced prospects for business and investment in Pakistan due to which many foreign countries and investors were looking at Pakistan with great interest for joint ventures and investment.

He said that it was the right time for SSP Group to set up its sub office in Pakistan and explore new business and investment opportunities in Pakistani market. Talking about prospects of bilateral cooperation between Pakistan and Malaysia, he said that both countries have great potential to set up

joint ventures in the fields of pharmaceuticals, livestock & dairy, food processing, energy, chemicals, Halal products and particularly light engineering. He said being one of the leading financial advisors, SSP Group should play role to connect private sectors and investors of both countries for JVs in above fields. Speaking at the occasion, Dato Ahmad Hisham Zainal, Partner Investments of Strategic Swiss Partners (SSP) Group said that his company was a leading financial advisory firm with multiple years

of industry experience of both initiating new and enhancing existing business opportunities and investments. He said headquartered in Switzerland with sub offices in Malaysia and the UAE, SSP Group brought world-class expertise in business with a valuable understanding of the current and future status of the economy and transforming this knowledge into profitable investments. He said SSP Group delivered solutions to its clients with optimum investment performance by realizing the full

french envoy reveals plan for boosting trade LAHORE

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rench Ambassador to Pakistan Dr. Mark Barety has said that his Qirst goal is to promote trade between the two countries for that he has evolved an action plan.

He was talking to the LCCI President Malik Tahir Javaid, Vice President Zeshan Khalil and Executive Committee members here at the Lahore Chamber of Commerce & Industry. Ijaz A. Mumtaz, Sohail Lashari, Amjad Ali Jawa, Awais Saeed Piracha, Shahid Nazir, Tahir Manzoor Chaudhry, Nabila Intesar and others were also present on the occasion. French Ambassador said that help to French and Pakistani businessmen to visit each other’s country, exchange of valuable trade, business & investment related in-

formation and ease of visa processing are his action plan for boosting mutual trade relations.

He said that new French president is taking various initiatives for economic stability of the country.

He said that regulations are being simpliQied to make doing business in France easy. He said that a tax scheme has also given to reduce the number of taxes. He said that Pakistan needs to make its perception better as a number of French companies are shy to come here. He said that French travel advisory for businessmen should be changed as Pakistan, particularly Punjab is safest place for business.

He also called for product diversiQication saying that most of the trade between the two countries is in textile sector. He said that other sectors should also be focused for trade. He said that Lahore Chamber

of Commerce & Industry can contact French Embassy in Pakistan any time in cause of any problem.

Speaking on the occasion, the LCCI President Malik Tahir Javaid said that business community is well aware of the signiQicance of France in European Union. Pakistan and France enjoy good diplomatic relations and have stable trade and economic ties. Among the top exporting and importing countries for Pakistan in European Union, France is ranked at 7th and 5th places respectively. While sharing some trade Qigures, the LCCI President said that in 2015, the total volume of bilateral trade was dollar 778 million which surged to dollar 817 million in 2016.

The main reason of that increase was consistent rise both in imports and exports to France. From 2015 to 2016, the exports to France registered an increase of 3.3% whereas the imports from France went up by 6.5%.

potential of the market through its integrated platform. He said SSP Group worked with a large global network to effectively deliver business and investment projects. He said SSP Group has worked on a wide range of projects from green field developments to the investments in established corporate companies. He said he was on a study visit to Pakistan to explore how SSP Group could contribute in initiating new and enhancing existing business opportunities and investment in Pakistani market.

HSBc to pay $101.5m to settle currency rigging probe SBC has agreed to pay $101.5m (£73m) to settle a US criminal investigation into the rigging of currency transactions. The case, brought against the UK-based bank by the Department of Justice in New York, centred on the activities of traders accused of using confidential information provided by clients to the benefit of the bank. One former British employee, Mark Johnson, was convicted of fraud in October in connection with a $3.5bn currency transaction by Cairn Energy in which he was said to have deployed a tactic known as “front-running”. He is awaiting sentencing while Cairn received an $8.1m payment from HSBC in settlement. –CB Report

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Gwadar Customs seizes huge quantity of hashish worth Rs5.60m GWADAR: The Customs Collectorate Gwadar has impounded huge quantity of hashish and some luxury vehicles tyres worth more than Rs 5.60 million. Sources told Customs Today, that operation against smuggled items and non-duty-paid luxury vehicles is going on in full swing and several raids have been conducted during the previous month of December and operation against smuggled items is still going on during the current month of January.

Tuesday, January 23, 2018

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Hyderabad customs collects Rs765m more taxes than allocated target HYDERABAD ASLAM AnJuM QuReSHi www.customsbulletin.com

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he Model Customs Collectorate (MCC) Hyderabad has generated Rs422.717million of Customs Duty and taxes while it was assigned Rs1187.720million during 11 days of January 2017-18. So the total gain is Rs765million.

The Model Customs Collectorate collected Rs7966.572million as all customs duties and taxes during Fiscal Year 2017-18. The department received Rs2008.381million of customs duty during the month of December 2017-18.

The MCC Hyderabad got Rs7966.572million in the month of December 2017-18 and its allocated target was Rs6979.230million.

The major sources of tax revenue remained Hyderabad Dry Port, State Warehouse Sukkur-Larkana Division.

The Anti-Smuggling Organization (ASO) Hyderabad also seized nonduty-paid goods worth millions of rupees. Under the supervision of Collector Akhlaq Ahmad Khattaq, Additional Collector (HQ) Dr Aamer Nawaz Hamid, Deputy Collector Dry Port Principal Appraiser and Statistical Revenue ASO and others played an important

role in the revenue collection, ofQicials said. The Model Customs Collectorate (MCC) Hyderabad team comprised Superintendent ASO Hyderabad Customs Preventive Sikander Akbar Panhwar, Inspector Rana Shahbaz, Inspector Majeed Baraich, Inspector Shakeel Khan,

Inspector Imdad Ali Abro and other staff who took part in the operation.

The Anti-Smuggling Organizations (ASO) Sukkur and Larkana Divisions aborted various smuggling attempts and made big seizures of non-dutypaid items including 105,000 liters of

smuggled HSD diesel and four oil tankers bearing registration Nos: JP9950, TUA-579, TUD-121 and TKX649 Hino oil tanker. The other goods seized include 1500KG cumin seeds, 1100 cartons of master extra Mobil oil, mobile accessories, FDX XHS jack-

ets, sports shoes, gasoline generators, Baba baby hot sweaters, ladies artsilks and foreign origin cigarettes of Pine Light brand in different operations worth millions of rupees during the month of December and so far January Fiscal Year 2017-18.

ASo Multan takes into possession 11 smuggled vehicles & cigarettes MULTAN

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he Multan Customs AntiSmuggling Organization has impounded Non-DutyPaid vehicles and miscellaneous goods priced at Rs16.02million during the month of December 2017-18. The Model Customs Collectorate Multan, Vehicle Cell, is actively working with latest equipments in collaboration with

the Excise and Taxation Department. The Multan Customs Vehicle Cell has intensiQied its efforts to take into possession smuggling vehicles after veriQication of import documents.

The Multan Customs Vehicle Branch intercepted the suspected vehicles on daily basis and impounded various foreign origin vehicles which are checked and veriQied with the actual import database available on the spot. The Multan Customs Department has launched a crackdown on the smuggling and smuggled vehicles in the jurisdiction on the direction

of Collector Saud Imran. The AntiSmuggling Squad has impounded 11 vehicles during its enforcement action against the illegal vehicles.

The Anti-Smuggling Squad has been deputed at various routes of South Punjab, especially of Dera Ghazi Khan and Sadiqabad, to capture the Non-Duty-Paid vehicles.

The Multan Customs has taken into possession 11 various vehicles including Toyota Vitz, Mitsubishi Pajero, Honda Civic, Suzuki Kei, Toyota Land Cruiser, Toyota Corolla and others ones. Seven impounded vehicles were found tampered during the examination

done by the Anti-Smuggling Organization. The Anti-Smuggling Organization has also captured a huge quantity of foreign origin cigarettes from Multan.

Meanwhile, The Customs Investigation and Prosecution (I&P) branch has lodged FIR against suspect who is involved in smuggling of 40 kilograms of hashish recovered by Anti-Smuggling Organization in their action. According to details, Multan Customs Anti-smuggling Organization staff intercepted a Toyota Indus Corolla vehicle for examination on suspect of non-customs paid during their vigilant sur-

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veillance at Shorkot Road near Ada Bara Meel Kabirwala. The said driver accelerated the vehicle and tried to run away from sight in order to avoid searching of customs anti-smuggling staff. Customs antismuggling squad chased the said vehicle after covering some distance where driver left the car and ran away from spot after leaving its car alone to prevent himself from customs and law enforcement staff.

Multan Customs examined the said Toyota Indus Corolla car bearing registration No: A-0253 and they found 40 kilogram quantity of hashish hide inside the vehicle.