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Karachi, Sat July 15, 2017
ISLAMABAD
M FAIZAN
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ederal Board of Revenue Chairman Tariq Mehmood Pasha has directed Director General Inland Revenue Intelligence and Investigation Khawaja T a n v i r Ahmed to take stern a c t i o n against the individuals who are involved in money laundering of Rs 102 billion in the guise of gifts. He also directed that investigations should purely
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be based on merit, transparent and across the board without any discrimination. According to the details, an important meeting on this issue was held in the FBR House presided over by the FBR chairman and attended by the director general Inland Revenue, Member Legal HaPiz Muhammad Indhar and other senior ofPicials. The meeting reviewed the progress of ongoing investigations against individuals and it has been decided that those cases in which investigations are almost complete will be sent to the special courts for taxation for legal proceedings.
FBR Chairman directs to take stern action against involved in money laundering
ASO seizes smuggled goods & vehicles worth of Rs1350m during FY 2016-17
‘FBR to launch e-payment system soon to facilitate taxpayers’
Hong Kong seizes largest ivory haul in 30 years
Hyderabad Recovery Cell deposits Rs07.653m into national treasury
ChairmanTariq Pasha has directed DG IR Iand I&IKhawajaTanvirto take stern action | See pAge 01 |
ASO of Customs seized smuggled goods and vehicles worth Rs1350m | See pAge 02 |
FBR Member IT Ms. Nausheen has disclosed that FBR will soon launch tax | See pAge 04 |
Authorities in Hong Kong this week made their largest haul of contraband ivory | See pAge 07 |
MCC Recovery Cell, Hyderabad deposited Rs7.653m into the national exchequer | See pAge 08 |
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Court rejects bail pleas of suspects in tax evasion case Saturday, July 15, 2017
National
KARACHI: The Customs Taxation and Anti-Smuggling Court has rejected bail petitions filed Muhammad Anwar, Shahbaz Soomro and Asif Iqbal who were booked in a mega tax evasion case. During the hearing, lawyers for the accused persons appeared before the court and moved the bail petitions. They argued that their clients were innocent and were falsely implicated in the case, and that they are ready to face trail, therefore, the court may grant them bail till final judgment of the case.
ASo seizes smuggled goods & vehicles worth of rs1350m during FY 2016-17
FAISALABAD
ISLAMABAD
NAeeM SheIkh
M FAIZAN
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he Collectorate of Customs Adjudication Deputy Collector Asma Hameed ordered to confiscate Smuggled Vehicle of Toyota Corolla car. According to the details, the deputy collector issued Order in Original (ONO) while hearing a case against Muhammad Saqib ur Rehman son of Muhammad Shafiq ur Rehman registered by the Field Investigation Unit Khushab. The precise facts of the case are that In pursuance of information, the Customs Intelligence intercepted a Toyota Corolla car bearing registration no: AAM-350 (Quetta) near Musa Khail Chowk district Mianwali. The driver of the vehicle introduced himself as Muhammad Saqib ur Rehman. He was asked to produce documents relating to the vehicle but he could not produce any evidence in this regard. Therefore, the foreign origin vehicle was detained under Section 2kk and 17 of the Custom Act, 1969 read with section 3(1) of the import and export, Act 1950 punishable under section 156(1) 89 of the custom Act and forward the case to Customs Adjudication department.
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nti Smuggling Organization (ASO) of Customs Collectorate seized smuggled goods and vehicles worth Rs1350 million during financial year (FY) 2016-17. ASO seized 907 non duty paid (NDP) and offending vehicles while were found involved in transporting of smuggled goods. Deputy Collector ASO Junaid Mehmood while talking to Customs Today said that under guidance of Collector Dr Saeed Jadoon performance of ASO Quetta remain excellent during financial years (FY2016-17). Deputy Collector told that during the above said period the Collectorate seized 610 non duty paid vehicles worth Rs451 million whereas under section 157 (2) ASO Quetta seized 297 offending vehicles. He said that Customs Collectorate Quetta did not mention the value of offending vehicles in revenue because of their non cleared status. He said that during FY2016-17 the ASO seized 235 kilograms of narcotics comprises chars, heroin and opium worth of million of rupees whereas the ASO seized smuggled Petroleum Oil Lubricants (POL) products like petrol, diesel, kerosene oil, mobil oil in
Dc Asma orders to confiscate non duty paid toyota corolla
quantity of 195487 liters he was adding that the worth of said POL products estimated Rs109.00 million. Junaid Mehmood told that dur-
ing FY2016-17 the ASO Quetta seized Betel Nuts, Tyres, Spare Parts, cloth and foreign origin fake cigarettes in worth of Rs.790 million, he said that during above
said period the ASO registered huge cases against smugglers and tax evaders and seized smuggled goods and vehicles in worth of Rs.1350.00 million.
customs tribunal reject reference filed by M/s kohinoor traders
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ISLAMABAD
NAeeM uLLAh tArIQ www.customsbulletin.com
uring the Pirst week of July, the Customs Appellate Tribunal dismissed a customs reference Piled by M/s Kohinoor Trader after hearing the case for weeks. A division bench of the tribunal comprising Members, Syed Muhammad Anwar and Muhammad Nasir Khan, heard the case being contested against Directorate General
of Investigation and Intelligence, Islamabad. Earlier, the bench had dated in ofPice the hearing of the matter after directing parties to submit the case related documents. The bench had also heard another customs matter Piled by M/S Five Star Trading. Hearing on this matter was adjourned for further arguments. Counsels from M/s Kohinoor Traders, M/s Five Star Trading appeared before the bench and demanded time to Pinalize preparations of the cases. M/s Kohinoor
Traders, M/s Five Star Trading had Piled the cases against Directorate of Intelligence and Investigation, Islamabad. Customs Appellate Tribunal’s Member Technical, Ziaddin Wazir heard the cases of Raja Nabeel, Waqas Enterprises, Arshad Khan and Musawir Shah had Piled the cases. Raja Nabeel had Piled the cases against Directorate of Intelligence and Investigation, Islamabad. Other three appellants had Piled their cases against Model Collectorate of Customs, Islamabad. Last
week he had accompanied in hearing some cases, however, this time he would hear cases alone as single bench. Meanwhile, A single bench of the Customs Appellate Tribunal on Thursday dated in ofPice the hearing of four customs references for the next week. According to the details, Member Technical, Ziaddin Wazir of the Customs Appellate Tribunal heard the cases and adjourned the hearing for further arguments. The bench also asked the counsels to
assist the bench in the cases properly in order to reach a just decision. Raja Nabeel, Waqas Enterprises, Arshad Khan and Musawir Shah had filed the cases. Raja Nabeel had filed the cases against Directorate of Intelligence and Investigation, Islamabad. Other three appellants had filed their cases against Model Collectorate of Customs, Islamabad. Last week he had accompanied in hearing some cases, however, this time he would hear cases alone as single bench.
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ISLAMABAD
M FAIZAN
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ederal Board of Revenue Member Information Technology Ms. Nausheen Javaid Amjad has disclosed that Federal Board of Revenue will soon launch tax e-Payment system. E-payment system had to be launched in June 2017 but due to some Pinancial problems and technical reasons FBR could not launch this on time. These views were expressed by FBR Member IT during an exclusive interview with Customs Today. She said that Federal Board of Revenue is also expanding and developing its IT infrastructure for international tax cooperation through OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters. FBR has best IT system and its recently launched IRIS software is working properly. She said, “FBR is trying to curb the menace of tax evasion through effective IT system, for this purpose we are managing data of taxpayers and increasing our resources. Almost all taxpayers try to pay taxes in last four or Pive days of Pinancial year; due to this practice, heavy burden is put on our IT system and
sometimes it slows down. She hoped that tax e-payment will resolve this issue as after launching of e-payment system,
f oard o eral B d e F t and id tha nding a p x She sa e for lso cture u ue is a r n t s e a v r e r It inf n eratio ing its p o l e v x coop a t de l a ral ation ltilate u M intern ’s tive cD inistra gh oe m d A l throu Mutua atters ion on t n e v tax M n i con e c an Assist
taxpayers can deposit the tax from anywhere even through ATM or mobile phone banking. She said this is really a revolutionary step and taxpayers will feel ease to pay their taxes. This system be will helpful for Karachi taxpayers in real terms. In current situation, everybody feels risk to carry heavy amounts so through this system taxpayers can deposit taxes without carrying paper money. She stated, “We are preparing a new plan and strategy for FBR in the Pield of Information & Communication Technology (ICT). This will open new avenues for widening of tax net for FBR. I have served many years in Pield formations and I am aware of all the problems, it’s not an easy job, therefore, I prefer to work for resolving the issues of Pield formations.” She said, “We need to educate our taxpayers regarding online system and FBR is doing hard efforts for it. She said at least FBR should have Pinancial independence for their necessary development projects. She said, “We monitor and control software development and implementation by Pakistan revenue automation limited for external vendors and grant mandatory prior approval for initiating new or modifying, enhancing, shelving existing software application.”
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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
economy in political turmoil
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he latest political turmoil shows how some elements have always remained busy in creating fuss and chaos across the country on one pretext or the other. The biggest challenge before the nation is economy which is not picking up to the desire levels despite all the indicators and variables are in its favour. The country is facing mega trade deficit, low industrial output, persistent energy crisis and terrorism. The people lack basic amenities of life such as potable water, health, education and security, but the political elite is busy in settling their personal scores. The biggest business of the political elite is politics and they have nothing to do with plight of the business community in the country. The elite classes have funds and resources to live luxurious life without doing anything and without any known resources of income and this has already created vacuums in various segments of society. It appears the politicians are forcibly pushing the economy to the downward trajectory and it is difficult to ascertain on whose agenda they are working. No sooner the economy shows signs of recovery, they start raising issues which most of the time are non-issues. A media hype had been created during the last few months that the ruling family of the country is corrupt. However, the proverbial idiom“the pot calls the kettle black” also fits on those who are issuing the blemish statements against the family. The Joint Investigation Team, formed by the Supreme Court to investigate the corruption charges against the Sharif family, has found disparities in the family’s known sources of income and their actual wealth. As a matter of fact, this is not only the case of Sharif family, but also every third person of the country. Almost all the politicians are leading luxurious lives without any known source of income. As most of them are not from business community, they don’t pay taxes. However, the JIT statement confirms corruption as an open secret. The movement of illegal money within and outside the country is rampant and some of the government officials work in cahoots with criminal elements. The nation expects that action will be taken against corrupt elements whosoever they are within and outside the government and everyone should be made to pass litmus test of transparency in campaign against corruption.
Latest SBp review I
LAHORE
Dr AFtAB AFZAL
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n its latest Financial Stability Review for the calendar year 2016, the State Bank of Pakistan has declared the country’s financial sector as stable as risks remained subdued and resilience remained intact during the calendar year 2016.The analytical review sees improvements both in the financial and non-financial sectors, but points out that low to moderate level risks in the shortto medium-term could emerge. However, on its part, the State Bank is required to strengthen its regulatory and monitoring framework, improve its efficiency, ensure transparency in
payment system, and reinforce corporate governance regime for a better outlook for the current financial year. The report expects positive outlook of the financial sector for the current fiscal year despite risks and measures are being taken to enhance consumer protection. The Pakistani policymakers should also note that various segments and regions of the world economy are experiencing low economic growth which could have direct impact on the exports and imports of Pakistan. It should also be noted that Pakistan is close partner of the Gulf Cooperation Council and political turmoil in Syria, recent tension between Qatar and other gulf countries as
well as change of business rules by the new administration of the United States will have negative impacts on the business and trade in Pakistan. It is yet to be seen how the central bank will react to the recent changes in the world financial order as Britain has already parted ways with the European Union. If the non-state actors are active in terrorist activities, the financial terrorists are also active to damage the national economy. The recent fall in Pakistani rupee should be an eye opener for the government which had failed to curb such elements at the initial stage. The depreciation of the rupee would bring the gains of the economy down to
earth and it necessary for the central bank, Finance Division and all related government departments to work in tandem to safeguard the financial interests of the country. The government is expecting a conducive macro-financial environment to keep inflation at the lowest ebb and exchange rates at stable position. The economists hope the government would also put moratorium on acquiring loans from the international financial organizations. All the financial and economic matters depend on the policies and visions of the leadership and it is hoped Finance Minister Ishaq Dar will do all his best to keep the financial order intact.
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Bangladesh’s first LNG import terminal secures financing Saturday July 15, 2017
World
DHAKA: Bangladesh appears to be on track to begin importing LNG next year after this week’s announcement from the developer of the country’s first import terminal that project financing had been secured. Excelerate Energy said on July 11 that its partner in the development, World Bank unit IFC, had secured US$125.7 million in debt financing for the US$179.5 million Moheshkhali Floating LNG (FLNG) project. IFC will stump up US$32.8 million of the loan, while the rest will come from CDC Group, DEG, FMO and JICA. The IFC has already bought a US$10.8 million equity interest in the project alongside Excelerate’s US$43.1 million stake. Construction work is slated to begin in the fourth quarter, with an existing Excelerate floating storage and regasification unit (FSRU) to be brought online by mid-2018.
hong kong seizes largest ivory haul in 30 years
people smuggling gang arrested in Melilla MADRID
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HONG KONG
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uthorities in Hong Kong this week made their largest haul of contraband ivory in more than 30 years, amid surging illegal wildlife seizures fuelled by lax regulations and buoyant demand from mainland China. The former British colony situated at the mouth of China’s Pearl River Delta is one of the world’s top global transit hubs for endangered species and their products, such as shark Pin, pangolin skin and rosewood furniture. Customs ofPicials on Thursday said they had seized 7,200 kg (15,873 lb) of ivory tusks, valued at around HK$72 million ($9.22 million), at a cargo warehouse beside the city’s harbor. The ivory was discovered in a 40-foot container from Malaysia declared to hold frozen Pish, beneath which ofPicers found the
Bangladesh inflation cools in FY17 angladesh´s annual inflation eased to 5.44 percent in the financial year that ended in June, the planning minister said, as non-food prices rose at a slower pace but food prices climbed to a two-year high. Food inflation in the financial year hit 6.01 percent, up from 4.9 percent in the previous year, Mustafa Kamal told a news conference. In contrast, non-food inflation eased to 4.61 percent from 7.43 percent. Rising food prices pushed up annual inflation in the April-June quarter to 5.72 percent from 5.28 percent in January-March quarter. Food inflation has accelerated mainly due to a surge in the price of rice, the staple food for the population of 160 million. Higher prices of meat, edible oil, milk and other items also contributed. “Steps are being taken to contain rice prices,” Kamal said. –CB Report
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tusks. “The 1,000 boxes were halfempty when we found them with frozen Pish put around the ivory,” said customs ofPicial Raymond Chan. Conservation group WildAid estimated the tusks had probably been taken from about 720 elephants. Hong Kong’s agriculture, Pisheries and conservation department said it was investigating the shipment’s Pinal destination, probably a nearby country. A special administrative region of China, Hong Kong has lagged other
places, including the mainland, in adopting tighter rules against trading of ivory and other endangered species. Regulatory loopholes allow traders to use a stockpile of legal ivory as cover to smuggle illegal ivory to unsuspecting buyers, say groups such as the World Wildlife Fund and WildAid. China, Singapore and the United States have all banned the ivory trade, with the mainland closing down all operations by the end of this year.
Irish electronics firm is sold for more than €15 million
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Cork SME that designs and manufactures industrial criticalpower electronics used in machine tools, industrial robots, lasers and MRI and x-ray scanners for customers including Siemens, GE and Carl Zeiss, has been sold to a US multinational, Advanced Energy, for €15.5m. Excelsys employs 38 people, mostly based in Little Island, Cork, with a small number of staff in the US and China, to where it outsources manufacturing. Nasdaq-
listed Advanced Energy, based in Colorado, had sales of €428m last year and employs 1,500 people there and in California, Texas, Massachusetts, Taiwan, Japan, Singapore and China. It designs and manufactures power-control products that enable complex semiconductor processes, high-voltage power systems, precision temperature measurement and which control electronics and power control modules for key industrial applications. –CB Report
VER on the lookout for people trafPicking, the Guardia Civil in Melilla has arrested four people and is searching for another two. Seeing an increase in the number of illegal migrants arriving in the enclave, ofPicers kept surveillance on the border crossing with Morocco and established the ‘modus operandi’ of one gang of smugglers. They established that the gang was Pitting false bottoms to relatively new and good quality cars in which the migrants were hidden. All involved had Spanish nationality or the right to reside in Melilla and the cars had Spanish number plates. As they crossed the border, each car would contain a family including children in the hope of deflecting interest from police and immigration officers and once safely
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through, the drivers took the cars to a safe garage where the migrants who had paid in the region of €4,000 were released. It is believed that the six people involved were responsible for the smuggling of at least 74 individuals of sub-Saharan origin into Melilla. Meanwhile, A Spanish policeman was killed Wednesday during an operation against tobacco smuggling in a town on the border with Gibraltar that has long been plagued by contraband, an official and local media reported. Details of the incident in La Linea de la Concepcion on Spain’s southern tip remain unclear. Victor Sánchez, a 46-yearold father-of-two was hit by a vehicle when he was in the process of making an arrest, Gabriel Cobos, the councillor in charge of personnel at the city hall, told reporters. He added it looked like a police van “hit the agent” accidentally and not the vehicle it was reportedly chasing, but was unable to give further details.
poland to become eu hub for uS gas oland has unveiled a plan that would make it the European hub for imports of natural gas from the US. The plan was unveiled by Polish President Andrzej Duda during a visit to Warsaw by US President Donald Trump. “Can we become a hub through which American LNG gas will Plow to central Europe? I am convinced the answer is ‘yes’,” Duda told journalists meeting Trump. The Polish president stressed the issue is under the framework of Three Seas Initiative – an alliance of a dozen eastern and central European nations that border the Adri-
atic, Baltic and Black seas. The announcement came a month after the Pirst US tanker carrying liquePied natural gas (LNG) arrived in Poland. Poland imports most of the 16 billion cubic metres of gas it consumes a year from Russia, on the basis of a long-term deal with Gazprom which expires in 2022. Warsaw plans to replace the Russian gas after then with supplies from Norway via a planned pipeline as well as with more LNG from the U.S. coming to its terminal at the Baltic Sea. Earlier, the Polish foreign minister said more LNG supplies to Poland depended on the US. –CB Report
Singapore May retail sales rise 0.9% from year earlier SINGAPORE
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Singapore’s retail sales in May rose from a year earlier due to an increase in sales of petrol, data showed. Total retail sales rose 0.9 percent from a year earlier, after increasing by a revised 2.7 percent in the previous month, according to
data from the Singapore Department of Statistics. Compared with a year earlier, petrol sales at gas service stations jumped 11.3 percent. On a month-on-month and seasonally adjusted basis, total retail sales fell 1.0 percent in May after a revised 1.7 percent increase in the previous month. Meanwhile, Imports are likely to grow percent to 9 percent this year
on sustained domestic demand, although such increase would be slower than the 18.4-percent expansion a year ago, DBS Bank of Singapore said Monday. The bank said in a report the sluggish import growth Pigures in the past two months simply rePlected high base effects. “Despite the last two months’ data, imports are still on course to post growth of some 8 percent to 9 per-
cent this year. Not quite the 18.4 percent recorded last year, but it will match the 8.7 percent recorded in 2015,” DBS said. DBS said export and import growth in May would likely to come in at 15.7 percent and 2.2 percent, respectively. Imports fell 0.1 percent in April. “Some market participants are beginning to wonder if this was a clear sign of a marked moderation in domestic demand.
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Tiles importer challenges ONO, show-cause notice KARACHI: A tiles importer has filed an appeal before Port Muhammad Bin Qasim Collector challenging an Order in Original (ONO) and a show-cause notice. The appellant/importer, Home Solutions, imported tiles in Hexagonal shape and declared the measurement as 3,327 square meters as per international standard method. The Customs Department questioned the measurement and held that importer mis-declared the measurement which was 3,966 meters. A show-cause was issued while the importer filed an appeal, and an ONO was also issued against them.
Saturday, July 15, 2017
CUSTOMS BULLETIN
hyderabad recovery cell deposits rs07.653 million into national treasury HYDERABAD ASLAM ANJuM QureShI www.customsbulletin.com
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he Model Customs Collectorate, Recovery Cell, Hyderabad deposited Rs7.653million into the national exchequer which was received from the collection of customs duty and income taxes during FY2016-17. The collection was made through Memon Motors, Hyderabad Site Area, Atlas Cable Kotri, Genre Trade Noriabad, Dada Bhai Cement Noriabad and customs and income taxes of Rs7.653million during FY2016-17. Under the Supervision of Collector Akhlaq Ahmad Khattaq, Model Customs Hyderabad Additional Collector Rehmatulah Vistro, Deputy Collector Mushtaq Shahni’s team comprised Superintendent Aslam Parvez Abbasi, Recovery Cell Incharge Inspector Habib Ahmed Sheikh and other staff. Besides, Model Customs Collectorate Hyderabad State Warehouse deposited Rs28million into the national exchequer. The amount was collaected through auction and duty/taxes during the FY2016 /17. These goods were conPiscated by the Anti-Smuggling Organization (ASO).
Marble export stands at $39.46m in July-June 2017, dips 32% KARACHI
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he overall marble sector export stood at $39.46 million during July-June 2017, registered a decline of around $18.50 million as compared to the same period last year that stood at $57.97 million, All Pakistan Marble Mining Processing Industry and Exporters Association (APMMPIEA) said.
Chairman APMMPIEA Sanaullah Khan said the export target for Piscal year 2017-18 had been Pixed at around $60 million, depending that all fundamentals should stand in the favour of exporters besides under such situation the need of Marble City was imminent. The decline of 31.91 percent in export in Piscal 2017 can be attributed to power load shedding, power outages, law and order situation besides high cost of doing business. Marble exports under HS Code 2515, stood at $24.09 million, HS Code 2516, $893,577, HS Code 2517, $842,508, HS Code
6802, $7.09 million and under HS Code, 6815 stood at $6.54million. During same period in previous Piscal, exports under these heads stood under HS Code, 2515, $35.06 million, HS Code 2516, $734,584, HS Code 2517, $562,397 million, HS Code 6802, $930,931 and under HS Code 6815, exports stood at $12.29 million. Pakistani marble was of excellent quality and its products could compete with any other county’s products in the world. He said the global trade in marble and granite was estimated at $46 billion a year while Pakistan remained a marginal market
player while with improvement in its infrastructure and technology, this sector had the potential to play far more important role in increasing exports. There was no problem of quantity but Pakistan was facing problems of quality and value addition as the country has poor infrastructure and not having modern machinery and technology to cater demand. Frequent load shedding and power outages were proving the biggest hurdle in the smooth performance of marble industry and emphasised that government should provide a favourable load
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shedding schedule to marble industry so that they could adjust their production without facing much problems. During yester years meetings with Sindh ofPicials and stakeholders, resolution of the issue and start of Marble City project had been remained on top of agenda and work on the project should now be completed on war footing. The government has allocated not a single penny on the development of Marble City in current Piscal year budget. He said after setting up of Marble City, the marble exports would enhance to $2.5 billion in next few years.