Tuesday, 30 January 2018

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Karachi, Tue January 30, 2018

ISLAMABAD

M FAIZAN

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pecial Assistant to Prime Minister on Revenue and Federal Minister Haroon Akhtar Khan has invited the Japanese businessmen and investors to visit Pakistan and explore investment opportunities in a broad range of areas, particularly infrastructure development in the country.

“We have a much improved security situation and a stable economy

with all economic indicators doing very well which should make a strong case for Japanese investors to come to Pakistan and beneTit from the investment opportunities available here,” he said during a meeting with Japan’s Ambassador Takashi Kurai who met the Minister at FBR House to discuss matters related to bilateral economic relationship in the backdrop of recent visit of Taro Kono, Minister for Foreign Affairs of Japan, to Pakistan.

Haroon briefed the visiting envoy on the headways made by the

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government in overcoming energy shortages and reducing the gap between demand and supply of natural gas in the country. “The evidence for all this is on the ground as we have moved from a routine 18hour load-shedding in the past to a minimal power outage now, and the same can be said about the gas sector where the recent installation of two LNG terminals has considerably reduced the demand-supply gap, enabling the government to provide regular, alwayson gas supply to the industry,” he said.

All Islamabad’s Customs Stations suffer a loss of Rs18m as Customs Duty

Surriya to change Valuation Ruling No: 709/2018 on February 26

Customs Intelligence raids godown near Abid Market, seizes 203 LEDs

Ahsan wants political stability to complete CPEC projects

Textile industry has potential to spur development activities: Ghazala Nasir

All the customs stations, working under the jurisdiction of the MCC Islamabad | See pAge 02 |

DG Valuation, has decided to revise the Valuation Ruling No: 709/2015 on Feb 26 | See pAge 03 |

CustomsI&Iteamhasraidedagodownnear Abid Market, and seized smuggled LED | See pAge 04 |

Announcing that China and Pak have agreement on the technical issues of $8.2 b | See pAge 14 |

DC Zone VII, CRTO, Ghazala Nasir Siddique has said that textile industry | See pAge 16 |

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Ayyan’s petition’s hearing for restoration of seized money resumed Tuesday, January 30, 2018

Islamabad

ISLAMABAD: The Customs Appellate Tribunal resumed the hearing of Ayyan Ali’s petition for restoration of money seized. The case has been dismissed twice for non-prosecution after the appellant failed to take part in tribunal’s proceedings despite issuance of multiple notices.

Tribunal’s division bench, comprising Chairman Justice (r) Manzoor Hussain and Ziauddin Wazir, heard the arguments.

All Islamabad’s customs Stations suffer a loss of rs18 million as customs Duty

ISLAMABAD

ISLAMABAD

NAeeM uLLAh tArIQ

tArIQ DerYA

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he Islamabad High Court (IHC) dated in office the hearing involving Directorate General of Customs Intelligence and Investigation, and Appellate Tribunal Inland Revenue with directives to parties to prepare arguments in the cases. A division bench of the IHC comprising Justice Athar Minallah and Justice Miangul Hassan heard the matter and issued directives.

The bench had earlier relisted the cases including the one filed by M/s Awan CNG Re-Filling Corporation (Private) Limited. The company had filed the case against Model Collectorate of Customs. The bench had also dated in office hearing on matters filed by DG intelligence and investigation against Malik Muhammad Ajmal Khan. M/s Comfort Sales Corporation had filed case against ATIR and customs department. M/s Comfort Sales Corporation had challenged the act of recovery of said amount by Commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. 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.

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ll the customs stations, working under the jurisdiction of the MCC Islamabad, received Rs18million less revenue than an assigned proportional revenue collection target of CD for Tirst half of January FY17-18.

According to details explained by sources of the Model Customs Collectorate Islamabad that, during above said period, the Customs Sections, comprising Islamabad Dryport (IDP), Air Freight Unit (AFU), Customs Bond Section, Unaccompanied Baggage (UAB), Accompanied Baggage (AB), International Mail OfTice (IMO) and Rebate Refund, showed a reduction of CD against an allocated proportional revenue target except IDP and UAB. During Tirst half of January FY17-18, all the stations generated Rs275.63million against an earmarked proportional target of Rs294.21million under the head of CD. Sources notiTied CT that the IDP earned Rs198.51million as CD against an assigned revenue target of Rs161.85million. It was told that, during Tirst half of January FY2017-18, the AFU Islamabad got Rs75.97million of CD while it was allocated Rs133.31million.

The Customs Bond Section collected Rs1.49million against a target of Rs1.69million and the UAB generated a revenue of Rs0.42mil-

Ihc seeks final arguments on pleas filed by customs I&I, AtIr

lion against an earmarked Rs0.24million as CD during above said period. The AB sections of the MCC Islamabad received Rs0.85million of CD against an earmarked

Rs1.16million of revenue target under the head of CD whereas the IMO collected Rs0.40million as CD against an allocated revenue target of Rs0.31million and the Rebate Re-

fund Section paid off Rs2.00million to exporters during the initial 15 days of the current month of January 2017-18 against an assigned target of Rs9.68million.

easy visa facility for traders of D-8 countries will enhance mutual trade

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ISLAMABAD

M ArShAD

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he Ministry of Commerce (MoC) is striving hard to beneTit from agreement on SimpliTication of Visa Procedures for the Businessmen hailing from member countries of the Development Eight (D-8) organization for economic cooperation.

The agreement on SimpliTication of Visa Procedures for Businessmen

among the D-8 member countries has been entered into force. The agreement would facilitate the business community and would further strengthen business to business cooperation. D-8 organization had fallen short of trade and economic goals over the last few years; therefore, through this agreement, MoC aims to achieve the target of mutual trade volume of $500 billion in the current Tiscal year.

The D-8 Organization for Economic Cooperation, also known as

Developing-8, is an organization for development co-operation among Bangladesh, Egypt, Nigeria, Indonesia, Iran, Malaysia, Pakistan, and Turkey. “The agreement on simpliTication of visa procedures for the businessmen and agreement on administrative assistance in customs matters by seven members have already come into force and these agreement have given impetus to the promotion of intra D-8 trade” a well-placed source at Ministry of Commerce told Customs Today.

The source said that enforcement of trade agreements among the member states was the major success of the D-8. Likewise, ratiTication by almost all the member states of Preferential Trade Agreement and Visa Facilitation was an important success and MoC had played an active role in the D-8 in this regard.

“In order to enhance cooperation in the area of trade among the D-8 member countries, a Preferential Trade Agreement has already been inked and it entered

into force with the ratification by Turkey, Iran, Malaysia, Nigeria and Indonesia. However, the agreement could not be operationalized as some of the countries have not yet submitted their request/offer list” the source added.

In order to move forward and operationalize the PTA, the source said that MoC is going to hold the next meeting of supervisory committee in April 2018 to remove impediments in operationalization of the agreement.

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Customs Valuation revises values of adult diapers KARACHI: Directorate of Customs Valuation has revised the customs values of adult patient diapers vide Valuation Ruling No.1245/2018.

Customs values of adult patient diapers were earlier determined vide Valuation Ruling No.935/2016. M/s Mehran International moved the department to revise the values due to rise in prices of adult patient diapers in the international market

tax evasion of rs23.50m unearthed by customs pcA

Tuesday January 30, 2018

Karachi

Surriya to change Valuation ruling No: 709/2018 on February 26

KARACHI

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he Directorate of Customs Post Clearance Audit has detected an evasion of duties and taxes of Rs23.50million by M/s Sonehra Enterprises, it is learnt. The official sources told our reporter that M/s Sonehra Enterprises Karachi imported a consignment of Paper Role and different parts of printing machines from Germany under the PCT Heading 4509.3588 and got it cleared from the PICT Karachi vide GDs on October 18, 2017 by paying customs duty at 8 percent after claiming the benefit of the two different SROs. However the subject items are correctly classifiable under the PCT 5606.4578 attracting customs duty at 10 percent and income tax at 16 percent.

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customs tribunal gives last opportunity to customs KARACHI

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special customs appellate tribunal comprising Ghulam Mustafa Memon, Member Judicial and Tanveer Ahmed, Member Technical on Tuesday deferred hearing of an appeal filed by telecom giant Telenor till Feb 6 affording last chance to the Pakistan Customs. The appellant represented by Franklin Law Associates, assailed the notice of recovery maintaining that a committee formed by the department it self which while hearing a plea by another telecom giant Mobilink held that PCT heading mentioned

by Telenor are enforceable and none else. The tribunal asked the departments council to either solve the controversy or it would decide the case and would set aside the Order in Original.

The case pertains to levy of custom’s duty and taxes in respect of batteries imported for networking of the appellant/petitioner cellular companies.

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KARACHI

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irector General, Customs Valuation, Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 709/2015 on February 26, 2018, it is learnt.

Surriya Butt has said the department was reviewing suggestions submitted by various importers to set new prices of Polyester Yarn. She said some valuations issued in 2015 were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international market. Sources told CT that a petition was submitted before the Customs Valuation in which change in prices of Polyester Yarn was requested.

Sources said Valuation Ruling No: 709/2015 was issued on 23 January 2015. A meeting was held with the stakeholders on January 15, 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 the known foreign manufacturers of the item in question through which the actual current value could be ascertained.

Source said in this current month more than six meetings will be held by importers and it is possible that some database also be revised in this current month of January.

Meanwhile, Directorate General, Customs Valuation, Director General

Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 765/2015 on February 27, 2017, it is learnt. Director General Surriya Butt has said the department was reviewing suggestions from importers to set new prices of furnishing fabrics. She said some valuations, issued in 2015, were being reviewed from the beginning.

Moreover, the valuations will be set in view of the rising prices in the international markets. Sources told CT

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 the known foreign manufacturers of the item in question through which the actual current value could be ascertained

court challan against suspects in tax refunds scam

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KARACHI

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he National Accountability Bureau (NAB) Court has directed the investigation ofTicer to complete investigation and submit charge sheet against suspects namely Luqman Javed and Abdul Hameed Agar, who were booked in a case of illegal sales tax refunds and causing losses to the national exchequer to the tune of Rs 120 mil-

lion. During the hearing, the investigation ofTicer sought more time to submit charge sheet, therefore, the court granted him time and adjourned the matter.

On the last date of hearing, the investigation ofTicer had produced the suspects before the NAB court and informed that the suspects were arrested from different areas of Karachi, who are beneTiciaries of illegal sales tax refunds and nominated in a reference in which DC FBR Abdul Rauf Nasir was arrested

on October 25, 2017.

He further informed the court that accused persons are receivers of proceeds of offence they committed by managing tax refunds on the basis of fake and bogus invoices, incurring loss of Rs120 million in connivance with other accused persons.

After the hearing, court had sent them to jail and directed investigation officer to complete investigation and submit charge sheet against them within reasonable period.

that a petition was submitted by the importers to Customs Valuation in which change in prices of furnishing fabrics was requested. Sources said the Valuation Ruling No: 765/2015 was issued on October 9, 2015. A meeting was held with the stakeholders on January 16, 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 the known foreign manufacturers of the item.

pakistan rupee closes flat he greenback closed flat in value versus domestic unit i.e. rupee both in the interbank and open market. As per the local money market, the dollar remained unchanged both in open market and interbank for selling at 110.55 and for selling at 112.45 respectively. The greenback closed at Rs 110.35 for buying and Rs 110.55 for selling in interbank transaction.

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Customs Tribunal sets aside order, accepts multiple appeals in import case Tuesday January 30, 2018

Lahore

LAHORE: The Customs Appellate Tribunal has set aside an Order-in-Original in a case filed by the M/s M I Enterprises Faisalabad, M/s Global Business Trading Company against Collector of Customs (Appeals) and others. Justice (Retired) Malik Manzoor Hussain, Chairman, Customs Appellate Tribunal, heard the arguments from both sides and decided the appeal with remarks that order passed by the former judicial forum is set aside and appeal is allowed. According to the brief history of the case, the appellants imported an electric gas generating set and sought a clearance under respective GD and paid taxes and duties @ 5 percent.

customs tribunal reduces customs Intelligence raids godown fine from 20 to 10 percent near Abid Market, seizes 203 LeDs in impounded vehicle case LAHORE

LAHORE

SAJID NAwAZ

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he Customs Appellate Tribunal has modiTied an Orderin-Original in an impounded vehicle case which was Tiled by Deputy Director Intelligence and Investigation-FBR Lahore against Shahbaz Hamid and others. Muhammad Shabbir Gujjar, Member Judicial, heard the case in details and passed the arguments that respondent is ready to pay the taxes and duties on the reduction of redemption Tine so the Tine is reduced from 20 percent to 10 and case is disposed of.

The staff of the Customs Intelligence and Investigation intercepted a Mazda truck. On demand, the driver failed to produce legal documents regarding the legality of the

FIA to probe Zainab killer’s bank accounts he Federal Investigation Agency, Lahore, has started a probe into the reported bank accounts of the arrested accused Imran Ali, who allegedly raped and murdered Zainab. A senior FIA official told this correspondent on Thursday that a thorough probe has been launched to ascertain whether more than 30 bank accounts including foreign currency accounts, reported in the media, belong to the murderer Imran and his family or not. The media reports linked Imran with international pornography mafia claiming that he has more than 30 bank accounts and has received millions of dollars in his bank accounts over the years. The FIA top bosses ordered an inquiry and assigned the task to Assistant Director FIA Sajjad Mustafa Bajwa. According to the official, the FIA inquiry team haswritten to State Bank of Pakistan and sought complete banking details. –CB Report

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loader and the same was taken into possession under Section 2 (kk) of the Customs Act-1969.

After issuing a show cause notice, adjudication proceedings were culminated and Order-in-Original was passed with remarks that the impounded vehicle be released to the owner on the payment of 10 percent redemption Tine.

The department, being aggrieved from the order, Tiled the appeal before the Customs Appellate Tribunal and produced all the documents showing the illegality of goods and also presented arguments that the ONO was passed in a mechanical fashion and former authority has ignored the fact of the case therefore Order-in-Original is liable to be set aside. On the other side, the respondent/owner of vehicle produced the record and showed willingness in the payment of short-paid duties and taxes if Tine is reduced.

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Customs Intelligence and Investigation team has raided a godown near Abid Market, Lahore and seized huge quantity of smuggled LEDs worth Rs25 million. According to Customs I&I Additional Director Dr Mumtaz, the raiding team recovered 203 LEDs of 42 to 80 inches sizes. He said that the further investigations are underway and the real market value of the seized LEDs are being estimated.

Meanwhile, Directorate of Customs Intelligence and Investigation will hold the auction of non-duty paid good on Tuesday.

Sources told Customs Today that Customs I&I will offer various goods which included foreign origin Siemens brand electric

generator, foreign origin grease in iron drums of different brands, tyres of different vehicles, plastic tarpal and New Nature tubes QV for cars size 155/165/17513 of the Chinese origin.Sources said that foreign origin old and used

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jacks for light vehicles, foreign origin clutch plate non-serviceable, foreign origin used radiators fan, foreign origin used radiators with fan and foreign origin used break server will also be available for auction.

two more of mega heroin smuggling 3 illegal currency exchanges busted case held after probe from czech model n FIA team unearthed three claimed to have arrested 15 fraud-

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he Pakistan Customs has apprehended two accused in a notorious case of Rs100million heroin smuggling from the Allama Iqbal International Airport Lahore. A second accused was arrested by Pakistani authorities on Saturday after the interrogation of Czech national Tereza Hluskova held while trying to smuggle a large quantity of heroin.

The arrest was made during a raid in Lahore on the basis of information provided by the Czech national during interrogation. The ac-

cused has been identiTied as Shoaib who works as a property dealer.

The suspect told the interrogators that another man, Aftab, was also a member of the group. Another accused has been also arrested from Gujarat, allegedly involved as a facilitator in heroin smuggling. Raids are being conducted to apprehend the third suspect who is still at large.

A source told Customs Today that customs ofTicials have also summoned the car driver who dropped Tereza Hluskova at the airport. –CB Report

illegal currency exchanges and arrested its owners. FIA Deputy Director Mufakhir Adeel informed the media that a team of the agency carried out a in Nowshera Virkan and earthed three illegal currency exchanges.

The FIA officials arrested three accused namely Muhammad Shahbaz, Sohail Yousaf and Abdul Sattar for running illegally business. The team also seized Pakistani and international currency from the accused persons. Meanwhile, Federal Investigation Agency (FIA) teams

sters. According to FIA officials, the accused were identified as Zulfiqar Ali, Muhammad Javaid, Maqbool Ahmad, Basharat Ali, Muhammad Asghar, Ghulam Mustafa, Ejaz Ahmad, Sohail, Rehman Maqbool, Zafar Iqbal, Malik Anwar, Riyasat, Muhammad Aslam, Ubaid Ullah and Javaid Iqbal who had extorted money from people for sending them abroad but they neither sent them abroad nor returned money. The FIA teams arrested the accused and started investigation. –CB Report

court approves remand of accused in mobile smuggling case

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LAHORE

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he Special Federal Court of Customs Taxation and AntiSmuggling has approved fourteen days judicial remand of the accused, who is arrested in mobile smuggling case from Lahore.

According to details an accused

Zabi Ullah Khan was arrested by the Customs Intelligence team from Lahore. Customs Intelligence and Investigation team produced the accused before the Customs Court for obtaining his judicial remand that was approved by the court on Monday. Accused Zabi Ullah was arrested while trying to smuggle mobile phones to some traders of Hall Road which is a

largest mobile phones market in Lahore even in Punjab. Customs Intelligence team intercepted the accused and recovered huge quantity of mobile phones of different brands. Sources told that Customs Intelligence has recovered 1460 mobile phones. Worth of the recovered mobile phones is more than Rs 10 million in local market. By smuggling these cell

phones accused has caused a huge loss to the national kitty in the wake of duty and taxes.

Seizure of such a huge quantity of mobile phone sets has raised many questions and Customs Intelligence has initiated a comprehensive inquiry to unearth the real culprits of the crime. Sources told that these cases involve huge illegal transfer of money from Pakistan.

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he Federal Board of Revenue (FBR) is carrying out the audit of cellular companies with regard to the collection of withholding tax for the period between July and September 2017. At present, withholding tax audit is underway only one of the four cellular companies. In this regard, the FBR officials are scrutinizing the final data uploaded by cellular companies on the IT-based electronic data link.

However, sources at the FBR refused to reveal the name of the telecom company whose audit is underway. But the sources said that the Tield ofTicers along with IT experts from IT/PRAL (FBR), comprising six members, were conducting the Tield-based audit of the company under section 236 of the Income Tax Ordinance, 2001.

The sources said that FBR launched a pilot project for devising an IT-based mechanism for accessing subscribers’ withholding transactional data for ensuring effective monitoring of withholding tax. Under this pilot project, the FBR with the assistance of the Pakistan Revenue Automation (Pvt.) Ltd (PRAL/IT Wing), was able to develop a software utility portal.

The sources said that all the four telecom companies were required to upload their monthly customers’ transactional data on the prescribed format and requirements.

For this purpose, necessary support and assistance is sought from Pakistan Telecom-

Tuesday, January 30, 2018

munication Authority (PTA), the telecom regulator, whenever compliance issues arose.

“This pilot project/mechanism enabled during the current Tinancial year 2017-18 and all four mobile phone companies are now transmitting/uploading their customers’ transactional data to IT/PRAL,” the sources added, saying that the aforesaid portal enabled a more transparent and reliable customers’ withholding tax data transmission to FBR and the position of subscribers’ withholding taxes collected by all four cellular companies under section 236 of the Income Tax Ordinance, 2001.

eal to rev d e s u f ny F B r re compa at the m s o e c c e r l S ou t the the te ay. Bu me of a w r n e e d h n t ers dit is u d offic u l a e fi e s e h who that t /prAL om It s said r e f c s r t u r e so e re It exp ers, w h b t i m e w along g six m of the prisin audit m d o e c s , a ) (FBr the It field-b g the 236 of n i n t o c i u t c cond der se ny un 001 a p m o nce, 2 c o rd i n a

In this connection, the sources said that FBR’s IT/PRAL team in coordination with the concerned commissioner of Large Taxpayers’ Unit (LTU) remains in constant contact with the Telcos’ technical/management teams to resolve outstanding issues relating to data harmonization and other data requirements as they arise during the process of data harmonization checks by the IT/PRAL team.

After extensive technical exchanges between Telcos and Pakistan Revenue Automation (Pvt.) Ltd (PRAL, I.T Wing, FBR), the source said that all the four cellular companies -M/s Telenor Pakistan (Pvt) Limited, M/s Pakistan Mobile Communication Limited (Mobilink/Jazz), M/s Telecom Mobile Ltd (Ufone) and Ms. CM Pak (Pvt.) Ltd (Zong) started uploading their customers’ monthly transactional data with effect from July, 2017, on to the FBR’s electronic data-uploading Link.

The sources said that an initial analysis of the data uploaded by the four companies reveals the average size of each Telco’s subscribers/consumers base as provided here under; Telco Average Subscribers Base (FY 2017-18) Telenor over 40 million subscribers Mobilink over 52 million subscribers Ufone over 18 million subscribers Zong over 28 million subscribers .

“The proceedings are underway as per due process of law. The withholding income tax audit of other Telcos would also be carried out after taking into account the outcome and inference drawn from the withholding audit of the said company,” the sources concluded.

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

eDItorIAL

Solution to current account deficit

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ccording to the government policymakers, the country is facing current account deficit, but there is no plan in the pipeline to enter another loan programme with the International Monetary Fund. The country imported goods worth $53 billion during the previous fiscal year and the volume is expected to increase to $60 billion this year.

If the exports remain merely $20 billion, the country will face a huge trade deficit of $40 billion next year. The government will only two options left to fill the financial gap and that is to get further loans from international donor agencies or float another module of international bonds. The country imported goods worth $29 billion during the first half of the current fiscal year, incurring trade deficit of around $18 billion. Earlier, the government had imposed regulatory duty on hundreds of goods, including raw material used in the manufacturing of exportable goods, increasing cost of production. This made Pakistani products uncompetitive in the international markets. If the government introduces another module of international bonds, it will likely to be backfired and further devaluate the national currency. It appears the fund managers are playing with the country’s finances as a hobby and not as a responsibility. The regulatory duty increased the cost of production of the exportable goods, but left little effect on the import volume. Duty on legally imported goods also unleashed the gates of smuggling and corruption in the country. So far, the remittances sent by expatriate Pakistanis are a cause of relief for the economy, but expatriates are also forced one way or the other to stash their money in the countries they live. The successive governments in Pakistan believed in achieving short-term goals, but caused long term losses. Every policy and every step brings more harm to the economy than any good. Though the remittances are steadily growing but those are not alternate to export earnings. The only way to overcome financial woes is to attract local and foreign investment. Solution to trade deficit lies in the industrial sector which needs encouragement and tax relief. There is also need to curtail regulatory duty on the raw material which is used by the exportoriented industries.

global direct investment T

LAHORE

Dr AFtAB AFZAL

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he Tigures claimed by the Board of Investment show the country received nearly $1.38 billion foreign direct investment during the Tirst six months of the current Tiscal year in a situation when the global direct investment fell by 16 percent during the previous Tiscal year.

Most of the investment came from China though various European countries, including the United States also invested in Pakistan.

When Tlow of investment steadily went up in several developing countries, including India, Bangladesh and Vietnam, Pakistan received moderate inTlow of

foreign cash during the period.

The developing economies in the region have not only achieved macroeconomic fundamentals, but also accelerated their growth rate by providing tax concessions and bringing paradigm shift in their economic policies. When the global Tlow of direct investment is expected to reach $1.8 trillion this year, the developing economies are ready to further boost their growth rate and business conTidence in the emerging situation. The corporate sector and multi-national companies are always ready for investment if they are provided tax concessions and business friendly environment. Bangladesh is the best example of bringing basic

changes in its economic policies and attracted investment not only from developed economies, but also from the developing countries like Pakistan.

At a time various major economies are facing monotony and high cost of production due to expensive labour, Pakistan can beneTit from the situation if it introduces structural reforms in taxation system and basic changes in its economic policies.

However, some reports suggest the global gross domestic product growth will edge up to 3.1 percent and most developed nations are likely to get lion share of foreign direct investment. The United States will be the largest recipient of the foreign direct in-

vestment as it is expecting $311 billion this year followed by China which will receive $144 billion. If Pakistan wants to become hub of the global investment, it will have to open its land for foreign investors. The global investment interest in Pakistan will ensure not only security of Pakistan, but also prosperity of its people. Apart from introducing tax holidays, there is a need to minimize militant face of Pakistan. All the foreigners, who are staying and overstaying in Pakistan, must be regulated in a proper manner and their movement should be restricted. The legal and illegal immigrants are the biggest threat to the national security and the national economy.

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Pakistan, Russian central banks sign MoU on bilateral cooperation KARACHI: Central Bank of Russian Federation (CBRF) and State Bank of Pakistan (SBP) signed a Memorandum of Understanding (MoU) on bilateral central banking cooperation.

Tariq Bajwa, Governor SBP and Ms. Elvira Nabiullina, Governor CBRF signed the document in a ceremony held at the CBRF Headquarters, Moscow Russia. The event was also attended by the honorable Pakistan’s Ambassador to Russia, H.E. Qazi Muhammad Khalilullah.

SBP’s delegation was included on Syed Irfan Ali, Executive Director Banking Policy & Regulations Group and Muhammad Ali Malik, Executive Director Financial Markets & Reserve Management. The MoU aims at promoting cooperation between the two authorities primarily in disciplines of financial systems development, payment systems & financial infrastructure and financial institutions supervision.

Shc seeks final arguments on plea filed against levy of duty on LeD lights

Tuesday January 30, 2018

National

court awards imprisonment to suspects in cigarettes smuggling case

KARACHI

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he Sindh High Court (SHC) has directed customs officials and petitioners to file their final arguments on constitutional petitions, including Light Centre, against imposition of duty and taxes on consignments of LED lights. A two-member bench, headed by Justice Munib Aktar, was hearing the petition. During the hearing, counsels for the petitioners stated that they are engaged in the lawful business of import and imported consignments and filed Goods Declarations (GDs) under availing exemptions as entitled under 5th Schedule of the Customs Act, 1969. The counsels further informed the court that officials of the Customs Collectorate Appraisement did not accept the assessment made by the petitioners on the pretext that the petitioners’ goods are not entitled for relevant ex-

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KARACHI

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ustoms Taxation and AntiSmuggling Court Judge Syed Faiz Rasool Rashdi has awarded 18 days imprisonment and Tine of Rs 300,000 each to suspects namely Muhammad Ibrahim and Bashir Ahmed on pleading guilty.

The suspects were booked in a case of attempting to smuggle non-duty paid foreign origin cigarettes, etc During the hearing, the investigation ofTicer Tiled a charge sheet against the suspects. However, the suspects appeared before the court along with counsel and Tiled petition for pleading guilty and left themselves on the mercy of the court. After the arguments, the court awarded them 18 days imprisonment as undergone period and a Tine of Rs 300,000.

According to the prosecution, Mangopir police intercepted above mentioned suspects in its jurisdiction and recovered foreign origin Pine cigarettes, Marlboro gold Cigarettes, Essa Black cigarettes, Cartons L & M Tilter cigarettes Red & Black

and Gutkha etc for its illegal disposal in the open market illegally.

After formalities, police handed over them to Anti-Smuggling Organization Headquarter NMB,

Wharf Karachi along with said goods and customs department lodged Tirst information report against said suspects.

Case was registered against

above mentioned suspect and others for violation of under section 2 (s) and 16, 156 (1) (8) (89) and 157 of the Customs Act, 1969 and other related laws.

pcA detects tax evasion of rs 435m by M/s cMpak emption as per assessment. Citing Chairman Federal Board of Revenue, Collector of Customs Collectorate Appraisement West, the Engineering Development Board Alternate Energy Department Board as respondents, petitioner pleaded the court to declare the act of the respondents as illegal, mala-fide and arbitrary. They also pleaded the court to declare that above mentioned goods are entitled under 5th Schedule of the customs laws and restrain them from taking any coercive action against the petitioners till final order in these constitutional petitions. It needs to be mentioned here that court had issued notices to customs department and deputy attorney general and had directed them to file their comments.

LAHORE

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M hAYAt

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irectorate of Customs Post Clearance Audit, Lahore, has detected tax evasion of Rs 435 million allegedly by M/s CMPak on account of customs duty, sales tax, additional sales tax and income tax under 110 GDs. According to the details, the PCA Lahore detected evasion of customs duty amounting to Rs 343,544,992, sales tax Rs 58,402,649, additional sales tax Rs 10,306,350 and income tax Rs.23,255,353.

The PCA detected the evasion under section 32 (1) (2) (3A) of the Customs Act, 1969, Section 3, 6(1), 7 and 11(4) of the Sales Tax Act, 1990, and Section 148 ibid punishable under clause 1 and 14 of subsection (1) of Section 156 of the Customs

Act, 1969, Section 33(5)/34 of the Sales Tax Act, 1990 and Section 182(14) of the Income Tax Ordinance, 2001. The documents revealed that on receipt of an information through Director, Directorate of Customs, PCA Lahore regarding evasion of duty / taxes by way of misclassiTication of wi-Ti/miTi devices as modems under PCT Heading 8517.6220, soft data for the years 2015-17 regarding clearance of imports made by various telecommunication companies from Customs Collectorates (Preventive / Appraisement), Lahore was scrutinized with a view to conduct audit.

During the course of audit it transpired that the said imported goods were misclassiTied under PCT Heading 8517.6220 paying CD @0% against beneTit of FTA on import from China. Whereas, the subject devices, being subscriber end equip-

ment, were appropriately classiTiable under PCT Heading 8517.6940 and liable to payment of CD @5%, 10%, and11% respectively plus usual taxes without any beneTit of FTA, it was explained.

It was indicated that from the foregoing position, it is quite evident that the importer had got clearance of the imported ‘wi-Ti/mi-Ti modem/router, wireless work card modem, wireless mobile router modem, broadband mobile Wi-Fi modems, wireless access device mobile wi-Ti modem etc., as “Modem” under PCT Heading 8517.6220 and claimed / availed inadmissible beneTit of China-Pakistan FTA under SRO 659(I)/2007 dated 30.06.2007.

It was added that further scrutiny revealed that the said impugned goods are devices used with computers, laptop, tablets mobile phones etc., for connectivity through Wi-Fi cloud with the

system for internet by the subscriber at a home, small ofTice or similar place on 5-10 plus devices. These devices are not useable within the premises/ installations of Telecommunication Companies. Instead they have multiple functions including those of modem as well as router. The documents said in this regard attention is invited towards Tariff ClassiTication of telecom apparatus under PCT 8517. Telecom apparatus used by or installed at the telecoms are classiTied under PCT heading 8517.6100 & 8517.6200. It was said that on the contrary, the apparatus used or installed at subscriber’s end are classiTied under PCT Heading 8517.6900 and in view of foregoing position and by virtue of G.I.R 3© the aforesaid goods are speciTically classiTied under PCT Heading 85176940 i.e. subscriber’s end equipment and chargeable to CD @ 5%, 10% & 11% respectively plus usual taxes and have no beneTit of FTA.

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FIA arrests two human traffickers Tuesday January 30, 2018

National Valuation ruling No 765/2015 to be revised on February 27 by Surriya Butt

LAHORE: Federal Investigation Agency (FIA) Gujrat has conducted raids in different areas and arrested two land route agents.

According to FIA spokesman, FIA team arrested the land route agents Muhammad Saqib Bashir resident of Sadkal district Gujrat and Ashfaq Ahmad of Ahmed Nagar Chatha district Gujrat. The accused were involved in human trafficking cases while further investigation is underway.

Margallah Dryport deals in 500 more dutiable imported containers

KARACHI

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ISLAMABAD

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irectorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Ruling No: 765/2015 on February 27, 2017, it is learnt. Director General Surriya Butt has said the department was reviewing suggestions from importers to set new prices of furnishing fabrics. She said some valuations, issued in 2015, were being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international markets. Sources told CT that a petition was submitted by the importers to Customs Valuation in which change in prices of furnishing fabrics was requested. Sources said the Valuation Ruling No: 765/2015 was issued on October 9, 2015. A meeting was held with the stakeholders on January 16, 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 the known foreign manufacturers of the item .

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peshawar customs foils attempt to smuggle narcotics ustoms and Khasadar force jointly foiled an attempt of smuggling of narcotics from tribal region to Peshawar by recovering huge cache of hashish and opium from a Peshawar bound vehicle here at Bagyari checkpoint Line Officer, Jamrud Tehseenullah Afridi told that during their routine duty, stopped a suspected Suzuki van carrying registration no: (TU-455) for checking. During search 88 kilogram of hashish and 18 kilogram of opium were recovered, hided in different sections of the vehicle. One smuggler identified as Ikramullah son of Amanullah was arrested and put behind the bars in Jamrud for further investigation, the officials told. –CB Report

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he Customs Margallah Dryport Islamabad handled 500 additional dutiable and nondutiable containers of imports during first half of FY17-18 against the same period of FY16-17.

According to details given by official sources of Model Customs Collectorate (MCC) Islamabad that, during July to December FY17-18, the Margallah Dryport Islamabad processed 2,101 dutiable and nondutiable containers while it processed 1,550 dutiable and nondutiable containers during the same period of FY16-17.

During first six months of FY1718, the IDP processed 1,759 dutiable containers full of foreign ori-

gin goods while it entertained 1,429 dutiable containers during the same period of FY16-17.

During first six months of FY17-

18, the IDP received 349 non-dutiable containers while it passed 121 non-dutiable containers during the same period of FY16-17.

During first half of FY17-18, the IDP processed with the ratio of 13 containers per day while it did 10 containers per day during previous first half of FY16-17.

During first half of FY17-18, the IDP earned the business of imports in value of Rs17610million while it received Rs7923million of value business during the same period of FY16-17.

During first half of FY17-18, the IDP generated the dutiable business of import in value of Rs7982million while it did the business in dutiable amount of Rs6904million during the same period of FY16-17. The sources said the IDP earned Rs2534million of Customs Duty (CD) during first half of FY17-18 whereas it did Rs1539million under the same head of first half FY16-17.

customs generates rs180m surplus customs Duty during three weeks T

PESHAWAR

tArIQ DerYA

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he MCC Peshawar collected Rs180million extra revenue as Customs Duty during Tirst three weeks of January FY17-18 against the corresponding FY16-17.

According to details given by ofTicial of the Model Customs Collectorate Peshawar that MCCP received Rs530.90million of CD during Tirst three weeks of January FY17-18 while it did Rs255.45million under the same head during the same period of previous FY16-17. During Tirst three weeks of January FY1718, the collectorate showed 107.83% of growth by collecting surplus revenue as CD against the same period of FY16-17.

The Peshawar Collectorate was assigned Rs641.04million of CD for the month of January FY17-18. The collectorate displayed -110% of

achievement during Tirst three weeks of January FY17-18 against the monthly revenue collection target.

The Peshawar Collectorate got Rs151.83million of extra revenue as

Sales Tax (ST) during Tirst three weeks of January FY17-18 against a revenue collection under the same head during Tirst three weeks of January FY16-17. The collectorate

earned Rs528.34million of ST during Tirst three weeks of JanuaryFY1718 while it did Rs376.51million under the same head during the same period of FY16-17.

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Court issues non-bailable warrants against suspect in diesel smuggling case KARACHI: Customs Taxation and Anti-Smuggling Court Judge Syed Faiz Rasool Rashdi has issued non-bailable warrants against absconding suspect namely Muhammad Zamreen, the owner of an oil tanker bearing registration number JP-9950. The suspect was booked for attempting to smuggle non-duty paid 25,000 liters Iranian high speed diesel.

During the hearing, the investigation oďŹƒcer appeared before the court and informed that the suspect is still absconder and prosecution is trying its best to arrest him. He sought time to arrest the suspect. After the hearing, the court issued non-bailable warrants against absconding suspect.

Dg Valuation revises customs values of adult patient diapers KARACHI

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he Directorate General of Customs Valuation has revised the customs value of adult patient diapers through Valuation Ruling No 1245/2017 under Section 25A of the Customs Act, 1969. Earlier, customs values of adult patient diapers were determined vide Valuation Ruling No.935/2016 dated 23-09-2016. Representation of M/s Mehran International, Karachi, was received wherein they stated that the price of adult patient diapers of China origin has increased in the international market. This Directorate General initiated an exercise for re-determination of custom values of adult patient diapers. Meeting with stakeholders was held on 22-12-2017,

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the importers were also requested to furnish invoices of imports during last three months showing factual value.

Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained.

Copies of contracts made L/C opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last four months showing the dierence in price (excluding duty and taxes) to substantiate their contention. The importers present during the meeting contended that the prices of adult patient diapers determined vide the existing valuation ruling are already on the higher side as compared with the international values. Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs value of Adult Patient Diapers.

National

Software on top of 10 imported items levied with Sales tax spinner during 2016-17

ASo impounds three NDp luxury vehicles worth rs15m from Model town KARACHI

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irectorate of Customs Intelligence and Investigation Anti Smuggling Organization (ASO) impounded three luxury vehicles from Behria Town worth Rs15 million. Sources told Customs Today, that Deputy Director Customs Intelligence and Investigation Usman Tariq received credible information about some smuggling attempts. He immediately constituted a ASO team comprising Superintendent Saleemullah Khan, Intelligence Officer Zulfiqar Ali, Sohail Murtaza, and Inspectors Agha Sultan Haider and Nadeem Ahsan. The ASO team established check post near Model Town and started checking of vehicles. During checking the ASO team intercepted a vehicle bearing registeration no: AAA222 Crown Athlete, WGOO90 Crown Saloon car. The team asked the drivers of the above mentioned vehicle to produce legal documents regarding possession of the vehicles. During verification it was also revealed that these vehicles are registered with the help of bogus documents.

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ISLAMABAD

tArIQ DerYA

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he software remained on the top of the 10 imported items taxed with the sales tax spinner during the last corresponding FY2016-17 while imports of various equipments were on the top during FY15-16.

According to details given by ofTicial sources of the Model Customs Collectorate (MCC) Islamabad that MCC Islamabad received Rs3007.05million of Sales Tax (ST) through import of software while it did Rs1736.289million as ST through import of memory cards after Telecommunication parts came on the 3rd position with an amount of Rs1169.78million.

The sources notiTied CT that Tele equipments came on the 4th as spinner ST with an amount of Rs1340.151million. The MCC earned Rs1023.250million of ST through imports of equipments.

The MCC Islamabad generated Rs590.387million as ST through import of mobile phones. The sources added that it earned Rs586.51million through import of Sim cards under the same head at the same

Tuesday January 30, 2018

time. The collectorated received Rs658.378million of ST through import of aircraft. The MCC Islamabad generated Rs353.06million as ST during FY17-18. During previous FY15-16, the top import was seen as Sub end equipments with an amount of Rs1508.83million of ST and the telecommunication parts were considered on the 2nd number with an amount of

Rs1235.05million under the same head while the memory cards came on third position with a revenue of Rs1182.38million. Respectively, the sources told CT that the MCC Islamabad collected Rs1503.65million through import of software under the same head and the collectorate got Rs1398.86million through import of Tele equipments under the head of ST.

Ihc relisted four customs matters filed against AtIr

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KARACHI

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slamabad High Court on Wednesday relisted four customs matters Tiled against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue.

A citizen, M Anwar Khan had Tiled four customs references against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue.

IHC division bench comprising Justice Aamer Farooq and Justice Mohsin Akhtar Kiyani was hearing the matters. Meanwhile another bench also dated in ofTice hearing of cases submitted by M/s Pakistan

Tobacco Company Limited. The bench also heard another tax matter Tiled by M/s Pakistan Tobacco Company Limited. The appellant had Tiled a case challenging a show cause notice issued by the Large Taxpayers Unit, Islamabad.

M/s Pakistan Tobacco Company Limited had contested show cause notices issued by the Tield ofTices of Federal Board of Revenue.

According to details, M/s Pakistan Tobacco Company Limited had challenged recovery notice issued to it in head of outstanding sales tax by the LTU, Islamabad. M/s Pakistan Tobacco Company Limited had submitted that the department had is-

sued the demand for the tax year 2010 in head of sales tax. Federal Board of Revenue (FBR), ofTicers of LTU including commissioner Inland

Revenue, commissioner Inland Revenue (Appeals) and Appellate Tribunal Inland Revenue (ATIR) were made respondent in the case.

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S Africa aims to patch up threadbare clothing industry

World Customs

CAPETWON: South Africa is fighting to revive its frayed clothing industry, once a crucial provider of jobs in a country suffering from high unemployment, as a flood of cheap imports forces local factories to shutter and lay off workers. Once the economic lifeblood of many small regional towns, the abundance of cheaper products from China has led to the loss of nearly two-thirds of the sector’s jobs over the past two decades. After being employed for 22 years we were informed that the factory would close down in eight weeks,” said Vimla Padayachee, 46, who lost her job three years ago.

Tuesday January 30, 2018

emirates steward jailed for in uk for smuggling heroin

Australia warns Sri Lankans against people smugglers COLOMBO

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LONDON

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British air steward working for Emirates was sentenced to jail for eight years for attempting to smuggle £100,000 (Dh520,000) of heroin into the UK on a Tlight from Dubai to Manchester last year. 30-year-old Zohaab Sadique, from Oldham, greater Manchester, brought a kilogram of the deadly drug back on board the business class Tlight in January 2017, which he had hidden behind his own seat in the plane, using his knowledge of what could get through security checks.

After the A380 landed, ofTicers from Border Force North stopped a bus which was transferring cabin crew from the plane to the terminal. CCTV from the vehicle showed Sadique attempting to hide his bag but sniffer dogs discovered the

china’s economy enters a new season of stability hinese economists believe that China’s growth has stabilised around 6.5 per cent (in line with its growth potential).

The IMF echoes this view and expects the Chinese economy to grow by 6.8 per cent in 2018 and 6.5 per cent in 2019. But other views on China’s growth in 2018 are less sanguine. Fixed asset investment was the most important driver of China’s growth for many years and generated almost half of all demand. Investment has recently become less important due to structural adjustments. As pointed out by Martin Wolf many years ago, sustaining aggregate demand as investment weakens will be very challenging for policymakers in Beijing. –CB Report

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heroin. Following his arrest, ofTicers of the National Crime Agency (NCA) examined his phone and found pictures of the drug on it. Sadique pleaded guilty to charge of importing class A drugs, and was sentenced at Manchester Crown Court.

Jon Hughes, operations manager at the NCA, said: “Zohaab Sadique attempted to use his privileged ac-

cess and knowledge of the systems in place at the airport for criminal purposes. “Corrupt insiders like him are very dangerous people, and provide an important service to the organised criminal networks involved in smuggling drugs and other illicit commodities into the UK. This is why tackling corruption at the border is such a priority for us.”

ghana needs moratorium on food imports from South Africa

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here is the need for the government of Ghana to impose a moratorium on the importation of particular food items from South Africa in the wake of the outbreak of Listeriosis in that country, General Agricultural Workers Union (GAWU) of the Trades Union Congress (TUC) urged. Speaking to Xinhua via telephone, Edward Kareweh, General Secretary said the temporary ban on the speciTic food items from South

Africa would give authorities the opportunity to ascertain and determine the level of danger posed by food items from that country and the way forward. Ghana and South Africa have very strong economic ties which feed into trade and investment relations and so you see a lot of imported food items from South Africa being sold in the shopping malls and patronized especially by the middle class. –CB Report

ustralia warned Sri Lankans to beware of lies spread by people smugglers following media coverage of three recent failed human smuggling attempts.

The Australian High Commission in Sri Lanka said in a statement that Australian border protection authorities last December intercepted a people-smuggling boat with 29 Sri Lankan nationals on board, and all of the 29 people had been returned to Sri Lanka.

Sri Lankan authorities also recently disrupted two planned illegal boat ventures before they departed the island country. The vessel intercepted last December was headed for Australia, but several passengers indicated they had left Sri Lanka thinking they were travelling to New Zealand, the High Commission said.

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Australian High Commissioner to Sri Lanka Bryce Hutchesson said the interception of this boat showed that some people in Sri Lanka still wrongly believed it was possible to travel illegally to Australia or New Zealand by boat, or that there was some beneTit to be gained by attempting the dangerous voyage. Hutchesson further thanked the Sri Lankan government for its strong cooperation, saying Australian and Sri Lankan authorities were working closely together to track down those responsible for organizing the latest people-smuggling venture. Meanwhile, Chairman of the Sri Lanka Tea Board Rohan Pethiyagoda has told the ofTicial news website of the government that tea exports to Russia have commenced as usual. Russia imposed a temporary restriction on imports of all agricultural products from Sri Lanka, including tea, from December 18 last year after an insect, known as the Khapra beetle, was found in the packaging of one consignment of tea from Sri Lanka.

Iran, Belarus agro trade up 58% ran and Belarus traded $14.5 million worth of agricultural products during the 10 months to Oct. 31, 2017, to register a 58% increase compared with last year’s corresponding period.

This was announced by Belarusian Deputy Minister of Agriculture and Director of the Veterinary and Food Control Department Ivan Smilgin on the Tirst day of the 14th session of Iran-Belarus Economic Commission held in Tehran on Monday, IRNA reported. Iran’s major agro exports to Belarus include fruit and vegetable, while it imports pastries, juice and chocolate from the East

European country.

The volume of Iran’s agricultural exports is larger than its imports from Balarus. Smilgin noted that Iran has invested in trout farming projects in Belarus. The two-day session of Iran-Belarus Economic Commission concluded on Tuesday.

The session was co-chaired by Iran’s Minister of Industries, Mining and Trade Mohammad Shariatmadari and Belarusian Industry Minister Vitaly Vovk. Vovk stressed the need to expand economic ties with Iran and remove obstacles to Tinancial transactions, Belta news agency reported. –CB Report

Netherland Blueberry exports grew 57% in 2017

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AMSTERDAM

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n 2017 Peru exported 41,329 tons of blueberries, i.e. 57% more than the 26,327 tons dispatched in 2016, stated the general manager of the Association of Producers of Blueberries of Peru (ProArandanos), Sergio del Castillo Valderrama. He

also said that blueberry shipments in 2017 amounted to US $350,831,000, which is 46.17% more than the US $240 million achieved in 2016. The United States was the main destination with 44% of the total (in 2016 it participated with 56%). It was followed by the Netherlands with 26% (24% in 2016), the United Kingdom with 11% (12% in 2016), and China with

10% (in 2016 there were no shipments to this destination). In 2017 shipments to China were dynamic and this destination already accounts for a signiTicant share. In the medium term China could position itself as the second most important destination for blueberries from Peru, after the United States,” he said. In 2017 blueberry exports became one of the four most impor-

tant non-traditional agricultural export products, along with grapes, asparagus and avocados. Del Castillo also said that Peru currently has around 5 thousand hectares of blueberries. Of this total, 90% of the areas belong to the companies associated with ProArandanos. La Libertad is the main producing area of blueberries, but there has been an increase of crops in other regions.

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Russia: pulp exports down in Jan,Nov 2017 MOSCOW: In January-November 2017, Russian pulp exports decreased year-on-year, indicate the statistics published by the Russian Federal Customs Office.

Thus, during the first eleven months of 2017 Russia exported 1.9 million tonnes of pulp, that is 0.6% less than during the respective period of 2016.

The total value of the Russian pulp exported in January-November 2017 went up, from $890.1 million in 2016 to $964.9 in 2017. Therefore, the increase came up to 8.4%.

Besides, in January-November 2017, Russia exported 1.057 million tonnes of newsprint valued at $438 million. Thus, Russian newsprint export grew by 7.45% in volume terms and by 10.86% in value terms.

Five ships take berth at port Qasim ive ships MSC Maria Elena, MSC Pilar, Express Black Sea, Bunga Lucrna and Torm Estrid carrying Containers, Chemicals and Diesel oil were allotted berths at Qasim International Container Terminal, Engro Vopak Terminal and FOTCO Oil Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA). Berth occupancy was observed at the port at forty seven percent on Monday where a total of eight ships namely, MSC Maria Elena, MSC Pilar, Express Black Sea, Morning Star, Tamar, Bunga Lucrna, Bulk Electra and Torm Estrid are currently occupying berths to load/offload Containers, Rice, Steel Coil, Soya Bean, Chemicals and Diesel oil. Cargo throughput during last 24 hours stoat at 153,753 tonnes, comprising 118,665 tonnes import cargo and 35,088 tonnes export cargo inclusive of containerized cargo carried in 4,223 containers (TEUs), (2,700 TEUs imports and 1,523 TEUs ex-

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Ports & Shipping

Tuesday January 30, 2018

Maersk, other shipping leaders call for fuel ban

china expects greater rI participation at 2018 import expo

OTTAWA

hina has called on Indonesia to join the China International Import Expo (CIIE), scheduled in November this year, as one of the ways to boost trade between the two countries. Other than showcasing high-tech equipment, consumer goods, foodstuff, agricultural products and services, the CIIE will allow participants to conduct online and offline transactions through a “onestop” transaction platform, the Chinese Embassy in Indonesia said in a press statement. Wang Liping, the economic and commercial counselor at the embassy, said companies from Indonesia could join firms from the United States, Japan, Australia, Brazil, Thailand and other countries to exhibit its products at the CIIE and expand its business in China. Businesses from all over China will attend the expo to procure goods and services. It is estimated that more than 150,000 domestic and foreign buyers will participate in the expo. –CB Report

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aersk is amongst a diverse group of environmental organisations and members of the global shipping industry that have demanded the end of the carriage of non-compliant marine fuels by 2020 when the global sulphur cap takes place.

The International Maritime Organisation (IMO) has ruled that by January 1, 2020, the maximum permitted sulphur content of marine fuel outside Emission Control Areas will reduce from 3.5% to 0.5%.

This means that if a ship is using an approved equivalent compliance method, there should be no reason for it to be carrying non-compliant fuels for combustion on board.

Read a technical paper by Simon Bennett, Director of Policy & External Relations, International Chamber of Shipping (ICS), on the gamechanging new IMO suplhur rules The call for prohibition is sup-

ported by the International Chamber of Shipping, BIMCO, Clean Shipping Coalition, Cruise Lines International Association, Friends of the Earth U.S, International Parcel Tanker’s Association, INTERTANKO, PaciTic Environment, World Shipping Council and WWF Global Arctic

Programme. Søren Toft, Executive Vice President, Chief Operating OfTicer at A. P. Moller-Maersk, said: “Great to see unprecedented and strong cross-sectoral & NGO support for ban on HighSulpher fuels.

Maersk fully support the ban and strong enforcement.”

uS sanctions Nk ships suspected of smuggling goods ports) was handled at the port. Two ships MSC Pilar and Tamar sailed out to sea Tuesday morning, while three more ships, MSC Maria Elena, Express Black Sea and Morning Star are expected to sail on same day in the afternoon. Five ships APL Charleston, CMA CGM Nerval, Northern Monument, Royal Jade and Fraiha carrying Containers, Steel Coil and LNG are expected to take berths at QICT; MW-2 and EETL respectively.

Meanwhile, The Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours. (Bulk Oil Pier) OP-I Cora D. Crude Oil Alpine 23/01/18 OP-II SC Brilliant D. Base Alpine 22/01/18 OPII JO Pinari D.–CB Report

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he United States slapped sanctions on six North Korean ships, 16 individuals and nine companies that it said had facilitated Pyongyang’s weapons programs in a continuing effort to further isolate the regime.

The sanctions are a part of a strategy by the Trump administration to pressure North Korea into abandoning its nuclear weapons and long-range missiles.

Increasingly, the administration has been turning its attention to the smuggling going on despite a round of U.N. sanctions. Secretary of State Rex Tillerson attended a conference in Vancouver last week in which diplomats from 20 nations discussed ways to intensify pressure on North Korea, particularly by

stopping ship-to-ship transfers in open water. The United States is trying to build support for its campaign to get nations to blacklist ships involved in smuggling goods to North Korea from any port in the world, and conduct maritime interdiction.

The sanctions were announced shortly after Japan announced one of its spy planes had photographed a North Korean tanker that was likely to be violating sanctions by transferring cargo from one ship to another. According to Japan’s Ministry of Foreign Affairs, photos taken Saturday show the Rye Song Gang 1 pulling alongside a DominicanTlagged ship, the Yuk Tang, in the middle of the night. Shortly after the sun rose on Saturday morning, the two ships sailed away from each other. “The government strongly suspects the two engaged in offshore delivery which was banned

by U.N. Security Council resolu-

tions,” the ministry said in a statement. The sanctions by the Treasury Department’s OfTice of Foreign Assets Control listed six ships that sail under the North Korean Tlag – the Goo Ryong; the cargo ships Hwa Song, Un Ryul and Ever Glory; the tanker Kim Un San; And the cargo ship Ul Ji Bong 6, which loaded on coal at a North Korean port and delivered it to Russia in September.

Under the sanctions designations, the vessels are blocked, which imposes a ban on transfers or dealings of any kind. Americans are prohibited from dealing with the companies that own them, and international banks that do any kind of transactions with them are subject to U.S. sanctions.

Several of the 16 individuals sanctioned work in China near the North Korean border at the Korea Ryonbong General Corp., which the Treasury Department already has

sanctioned. According to the Treasury Department, Ryonbong supports North Korea’s military, helping it acquire chemicals, drilling equipment, hoses, metal and machines.

Some work for Ryonbong in Russia or Georgia, including one said to arrange jobs overseas for North Korean laborers whose salaries largely go to the North Korean government.

Other sanctioned individuals work for banks in China and Russia that are linked to a North Korean bank. The sanctioned companies are from China and North Korea – the Beijing Chenxing Trading Co. and Dandong Jinxiang Trade Co., Hana Electronics, which is one of North Korea’s few electronics manufacturers, and the owners of the six North Korean ships: Gooryong Shipping, Hwasong Shipping, Korea Kumunsan Shipping, Korea Marine and Industrial Trading and CK International.

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FIA proves corruption of Lok Virsa officer Tuesday January 30, 2018

Business

Islamabad: Federal Investigation agency (FIA) contacted Lok Virsa administration about systematic corrupt practices of the Administrative Officer.

Lok Virsa management being active in uprooting corruption, facilitated the inquiry process over the last one year. Several employees came forward with evidence of making false contracts with fake ID numbers and adjusting cash advances on fake receipts.

Ahsan wants political stability to complete cpec ISLAMABAD

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nnouncing that China and Pakistan have agreement on the technical issues of $8.2 billion Main Railway Line (ML-I) and cleared a few other road projects and Karachi Circular Railway (KCR), Minister for Interior and Planning Ahsan Iqbal on Thursday called for political stability and continuity of policy to enable the country to take off. “I request all the political forces, powerful quarters and mover and shakers of the system to concentrate jointly on the economic development of the country,” Mr Iqbal told journalists after 52nd review meet-

FIA arrests 16 deportees SIALKOT

cuStoMS BuLLetIN report

ing of the China-Pakistan Economic Corridor (CPEC) in follow-up to the recent conclusion of the Joint Work-

Framework for test, development of techs like 5g being formulated

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ederal Investigation Agency (FIA) has arrested 16 Pakistan nationals, who were deported from Turkey at Sialkot international airport, an official said. He said that these persons had arrived here through a private airline flight number G9551. He said that they had travelled to Turkey illegally. During preliminary investigation, they admitted that local human-traffickers sent them abroad illegally, he added. The FIA has registered separate cases against them.

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ing Group meetings in Beijing.

He said the current year was very important, also in view of upcoming

general election, to give a united message to the international investors particularly those from China that Pakistan was a stable destination but “we would be destroying the future of our generations if we created an environment of uncertainty because such opportunities become available in centuries.” The technical and Tinancial agreements on the ML-I would be Tinalised by March while construction to be started immediately.

Meanwhile, Imports of used cars and minivans surged to 65,723 units in 2017, up almost 70 per cent from 38,676 units a year ago, latest data released by the auto industry shows.

The arrival of sport utility vehicles (SUVs) also increased 59pc to 7,758 units. Imports of pickups and vans registered a 9pc rise to 3,154 units.

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ISLAMABAD

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akistan Telecommunication Authority (PTA) is in process of formulating a framework for test and development of new technologies like 5G and identiTication of spectrum bands in coordination with Frequency Allocation Board (FAB). Federal government has issued a Policy Directive in this regard and authority is also in process for constitution of a multilateral stakeholder working group for 5G.

OfTicial sources on Thursday said 5G is a commercial/marketing term (5th Generation Mobile Networks) also referred to as “IMT for 2020 and beyond.” which means International Mobile Telecommunication (IMT) system with a target date set for 2020. The sources said it is expected by international standardization bodies that 5G should be rolled out initially by 2020 to meet business and consumer demands.

Currently, it is not commercially implemented and standardized anywhere in the world, the sources said and added to stay at the forefront of

technology and to enable state-ofthe-art service to Pakistani consumers, Telecom Policy 2015 provides measures not only for early commercial adoption of technology but also to provide conducive test and development environment for upcoming and future technologies.

With regard to benefits to be accrued from said technology, the sources said 5G is expected to enable new around breaking data rates and limits, and will considerably enhance experience of services applications that are available today.

‘Nine sites identified for SeZs under cpec’ ISLAMABAD

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arliamentary Secretary for Planning, Development and Reform Dr. Ibadullah has informed the National Assembly that Special Economic Zones (SEZs) will be established in all the four provinces, federal areas and GilgitBaltistan under the CPEC (China Pakistan Econimic Corridor) project.

Responding to a question during question hour, he said these zones would be open to all investors, both for Pakistani and foreign investment. These sites, he said, include Rashakai Economic Zone, M-1 Noshera, Bostan Industrial Zone District Pishin, China Special Economic Zone, Dhabeji, district Thatta, Allama Iqbal Industrial City (M3), Faisalabad, Moqpondass ZEZ, Gilgit, ICT Model Industrial Zone, Islamabad, Development of Industrial Park on Pakistan Steel Mills Land at port Qasim near Karachi, Special Economic Zone at Mirpur AJK, Mohmand Marble city. The Parliamentary Secretary said that Special Economic Zones under CPEC are open for all the international and domestic investors. He said that the government is focusing on joint venture to establish industry in the country under the CPEC.

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Food exports increase 16.81pc in first half of FY2018 ISLAMABAD

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ood exports from the country witnessed an impressive growth of 16.81 during the Tirst half of the current Tiscal year compared to the corresponding period of last year. The food exports rose to $1,932,269 million during July-December (2017-18) against the exports of $1,654,245 million during

July-December (2016-17), according to latest data of Pakistan Bureau of Statistics (PBS).

The commodities that contributed in overall food trade from the country included rice exports of which grew by 18.32 percent from $712,832 million last year to $843,388 million during the current year. Among rice commodities, the exports of basmati rice increased by 4.52 percent while that of other rice commodities increased by 22.88 percent. The exports of Tish

and Tish preparations from the country also increased by 9.08 percent by growing from $183,446 million to $200,097 million while the exports of vegetables increased by 6.52 percent, from $58,871 million to $62,709 million. During the period under review, the tobacco exports from the country increased from $3,991 million to $20,625 million, showing growth of 416.79 percent while the wheat exports witnessed increase of 100 percent by going up from zero exports to

$0.045 million. Exports of oil, seeds, nuts and kernals increased by 10.35 percent from $20,243 million to $22,339 million while sugar exports also increased from zero exports last year to $181,209 million, showing 100 percent growth. Meanwhile, the food products that witnessed negative growth in trade included fruits, exports of which declined from $198,143 million to $180,288 million, showing 9.01 decline while the exports of leguminous vegetable

(pulses) decreased by 100 percent Exports of spics from the country also decreased from $37,478 million to $36,421 million, showing decrease of 2.82 million while the exports of meat and meat preparations decreased by 6.21 percent, from $104,401 million to $97,915 million. Other than these commodities, the exports of all other food products also witnessed decline of 14.08 percent by falling from $334,312 million last year to $287,233 million this year.

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Iran flat steel market remains sluggish TEHRAN: Iranian flat steel import market remained sluggish in the week that ended Wednesday, while local prices were more competitive to import. Iran’s national currency, the rial, continued to devalue against the US dollar, which made import prices less attractive compared to domestic ones. On Wednesday, $1 was equivalent to 36,567 rials, while on January 17, $1 was equivalent to 36,461 rials, as per the official rate announced by Oanda.com. In the free market, $1 was traded at 45,450 rials on Jan. 24, against 44,450 rials a week earlier. Iranian customers partially use the free market rate to import material due to the reduced availability of the US dollar at the official rate.

pcJccI honors Nazish for writing travelogue on china

Wednesday January 30, 2018

Chambers

Iranian delegation keen to promote agriculture trade with pakistan

LAHORE

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ak-China Joint Chamber of Commerce and Industry (PCJCCI) arranged a ceremony in the honor of Husnain Nazish for writing informative and interesting travelogue on his visit to China. The travelogue entitled as ‘Deewar-e-Cheen kay Saey Talay’ is reflection of the writer’s experiences in friendly Chinese community. PCJCCI reviewed the travelogue and arranged an exclusive ceremony of appreciation in which special remarks were expressed for Husnain Nazish by PCJCCI President S.M. Naveed, Senior Vice President Dr. Iqbal Qureshi and Vice President Rana Mehmood Iqbal and other PCJCCI rep-

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resentatives including Wang Zihai, Moazzam Ghurki and M. Salahuddin Hanif, and intellectuals and writers also participated in the ceremony. On this occasion S.M. Naveed said that PCJCCI would encourage every initiative aimed at promoting cultural and trade relations with China. He said that writers and intellectuals must come forward to play an effective role in strengthening the cultural bond with China, as Pakistan was now entering into a historical relation with China that would be transferred among the generations to come. S.M. Naveed stressed on the need for an effective literature that could help new generations to understand the cultural and traditional norms of both countries. Mr. Wang Zihai,representing Chinese friends,expressed deep gratitude for Husnain Nazish for explicating his experiences in an enlivening manner in his travelogue.

ISLAMABAD

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delegation of Iranian entrepreneurs of West Azerbaijan province of Iran led by Behnam Tajodinni, Head of the Agriculture Commission of the Urmia Chamber of Commerce & Industry visited Islamabad Chamber of Commerce & Industry and showed keen interest to develop strong trade relations with Pakistan in agriculture products.

Speaking at the occasion, Behnam Tajodinni said that West Azerbaijan was the third largest province of Iran with one of the highest producers of agricultural commodities. He said the province was producing annually 6 million ton fruits & vegetables, 1.2-millionton apple, 380,000 ton grapes and 280,000 ton apricots with 326 cold storage facilities with storage capacity of 1 million tons. He said the province was also on top in producing honey and was a hub of import and export activities in Iran. He said the province has great potential to promote cooperation in agriculture

sector with Pakistan. He stressed that the agriculture sector businessmen of both countries should develop close cooperation to promote bilateral trade of agro products between Iran and Pakistan.

Behnam Tajodinni said that about 32 Iranian trucks loaded with agriculture products were stuck up on Pakistani border in Baluchistan for the last 10 days and added that Pakistan has not informed them why the trucks were stopped. He

said such measures were discouraging efforts to improve bilateral trade between the two countries.

He said both countries should revise high tariffs on agriculture products to facilitate the entrepreneurs in further improving bilateral trade.

He also invited ICCI delegation to visit Urmia Chamber of Commerce & Industry and explore new avenues of mutual cooperation with Iranian counterparts. Speaking at the occasion, Sheikh Amir Waheed,

SccI for removing hindrances in trade PESHAWAR

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resident Sarhad Chamber of Commerce and Industry (SCCI), Zahidullah Shinwari has stressed the need for removing hindrances in promotion of bilateral trade between Pakistan and Iran. In order to achieve this goal, President SCCI suggested for establishment of Pak-Iran Joint Chamber of Commerce and Industry.

He expressed these views during visit of members of Aromia Chamber of Commerce and Industry from Iran to SCCI here on Wednesday. The Iranian businessmen, mostly dealing in fresh and dry fruit, were led by Acting Deputy Consul General of Iran, Syed Ibrahim Dahanvi.

The trade between the two neighbouring countries has the potential of extending it to dollar five billion, Shinwari opined.

He said smuggling of goods between Pakistan and Iran is detrimental for the interest of both the countries.

He also laid stress on setting up of banking system between both the countries and for strengthening it.

The Iranian investors can benefit from opportunities in Khyber Pakhtunkhwa by investing in different projects of hydel power generation, oil & gas, tourism, marble, mines and mineral and industrial sector, Zahid suggested. He reiterated his recommendations for promotion of formal and informal trade between Pakistan and Iran besides increasing exchange of trade del-

egations between the two countries for development of confidence among people and business fraternity.

Speaking on the occasion, Acting Deputy Consul General of Iran agreed with the suggestions presented by President SCCI. He said through promotion of business to business ties, the economy of both Pakistan and Iran can be strengthened. He said Iran attaches great importance on relations with Pakistan and leadership of both the countries should play their effective role in this regard. The Iranian diplomat also offered SCCI members to visit western province of Iran.

On this occasion, members of Iranian delegation gave a detailed briefing to SCCI members about investment opportunities in Iran.

President, Islamabad Chamber of Commerce & Industry said that Pakistan and Iran enjoyed good relations, but given the size of the economies of both countries, their bilateral trade was far below the actual potential. He stressed that both countries should encourage frequent exchange of trade delegations and focus on organizing single country exhibitions on reciprocal basis to explore new areas of mutual collaboration.

FpccI to hold punjab Business Symposium on 23rd ederation of Pakistan Chambers of Commerce and Industry (FPCCI) will organise the Punjab Business Symposium here on Tuesday with prime objective of highlighting business community concerns to the government and providing it suggestions for their solution. FPCCI Vice President and Regional Chairman Chaudhry Arfan Yousaf expressed these views in a meeting with a delegation of Sahiwal Chamber of Commerce & Industry (SCCI) here at the Federation’s offices.He said that the government and business community should jointly come forward for betterment of the country as the cost of doing business and trade was a serious concern of the business community. –CB Report

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Quetta Customs seizes 1500kg charas QUETTA: Model Customs Collectorate Quetta has seized 1500 kgs of high quality Chara’s worth Rs75 million.

Sources said that attempt would be made to smuggle contraband.

The staff at Phulaili check post was alerted and a suspicious truck was intercepted. The driver managed to escape. On inspection, charas was found in the concealed compartments of the vehicle. A case has been registered and investigation is under way.

Tuesday, January 30, 2018

CUSTOMS BULLETIN

textile industry has potential to spur development activities: ghazala Nasir LAHORE SAJID NAwAZ

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eputy Commissioner, Zone VII, Corporate Regional Tax OfTice (CRTO), Ghazala Nasir Siddique has said that textile industry has the potential to spur overall growth and development in the country. Talking to Customs Today, she said that potentials of textile and garment industry should be exploited as it has contributed signiTicantly in terms of trade, GDP and employment in several other countries.

“Such industries provide opportunities to diversify exportable items and expand manufactured sector,” she said. The contribution of textile sector is up to 5 percent in Sri Lanka, 12 percent in Cambodia and 15 percent in Pakistan, she added. Deputy Commissioner said that she is currently conducting the income tax, withholding and sales tax audit of cases of textile sector, selected by the FBR as well as desk audit of zero rated sectors.

She told Customs Today that up to December, 2017 her zone collected Rs. 1077million under the jurisdiction of corporate and non-corporate cases of zero rated sectors

against the target of 535 million, which is average increase of 70 % from the last year of 2015/2016.

She told Ministry of Textile Industry which has suggested revised

Prime Minister’s Package of Incentives for Exporters (textile sector) under which 50 percent of the rate of drawback of local taxes and levies shall be provided without condition

of increment. It seems that the government is determined to implement the reformed General Sales Tax (GST) which is just a nomenclature change for value-added tax, on the

textile sector. She added that we must be committed to identify and analyze issues and problems which are being faced by Pakistan in the area of textile sector of the economy.

torkham customs officials frustrate smuggling bid of Ice-Drug PESHAWAR

IrFAN BAhADur

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he customs ofTicials have thwarted an attempt of smuggling four kilogram of Ice-Drug concealed in secret parts of the truck on Thursday on Torkham Border in Khyber Agency. Accused smuggler Sher Haider was arrested who hails from Jalalabad Afghanistan. The truck, being used as a tool of

smuggling of drug, bore registration No: C-1239 D I Khan which was also impounded by the Torkham Customs ofTicials posted on Torkham border.

According to details shared by Customs Collector Customs Gull Rahman that some drugs were set to smuggle into Pakistan. He directed the customs staff posted at Torkham Customs Station to take actionable steps to frustrate the attempt of smuggling.

A special team was constituted headed by Assistant Collector Customs Sadaf Ali Shah in order to abort the possible bid of smuggling.

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

Assistant Collector issued strict orders to check every vehicle at the point of entry into Pakistan. The customs staff started checking of vehicles from early morning. On the arrival of the said truck, the Customs Police searched it thoroughly and recovered four kilogram of IceDrug, and the smuggler was also held on the spot. Assistant Collector Sadaf Ali Shah deserves appreciation who reTlects strong integrity in curbing any kind of smuggling, Gull Rahman remarked. The Collector Customs also lauded the efforts of Deputy Collector Customs posted at Torkham Customs Station.