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Karachi, Sat July 22, 2017
ISLAMABAD
M FAIZAN
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ember Taxpayers Audit, Federal Board of Revenue, Rehmatullah Khan Wazir has laid emphasis on the auditors for ensuring high quality service to the taxpayers for which tax laws should be applied and administered in a reasonable, practical, fair and impartial manners.
He stated this while giving an exclusive interview to Customs Today. He advised the ofRicials to conduct the audit within the boundaries of law in a cost-effective and efRicient manner. He hoped that all the remaining audit cases would be completed on time while expediting the recovery process. The audit of the taxpayers should be conducted in professional and transparent manners, he added. He said one of the primary goals of the Federal Board of Revenue (FBR) is to im-
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prove the overall compliance and instill conRidence in the community ensuring that the tax system and administration is fair. The FBR now follows a combination of taxpayers’ facilitation and compliance strategies. It essentially means encouraging the taxpayers to comply with the tax laws voluntarily through self-assessment and, at the same time, mitigating the risk of false declarations by employing a fair, transparent and non-discriminatory audit policy, he explained.
Rehmatullah stresses need for ensuring high quality service to taxpayers
Port Qasim Customs detects Rs10.25 million misdeclaration scam
‘DGTR soon to start Chinese language course for customs officers’
CBP officers seizes 72 pounds of liquid methamphetamine
PCA serves three contravention reports upon M/s BM Technologies
Taxpayers Audit, FBR, Rehmatullah has laid emphasis on the auditors | See pAge 01 |
PQ Customs has detected a Rs10.25 million misdeclaration scam by M/s Al-Aziz & Co | See pAge 02 |
DGTR will soon to start a Chinese language course for the customs officials, DG | See pAge 04 |
US Customs and Border Protection Office of Field Operations officers working | See pAge 07 |
PCA has issued three contravention reports against importer M/s BM Technologies | See pAge 08 |
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FBR receives over 1.21 million tax returns till 15th Saturday, July 22, 2017
National
ISLAMABAD: Federal Board of Revenue (FBR) has received 1.215 million tax returns for fiscal year 2016-17 by July 15. As pet the latest Active Taxpayers List (ATL) for the week ended July 15, the FBR received 1,215,356 income tax returns despite the fact that the government revised the withholding tax rates upward in the latest budget. The appearance in the ATL is mandatory for a taxpayer to avail the reduced rate of withholding tax while making certain transactions, including banking and property.
port Qasim customs detects rs10.25 million misdeclaration scam
ISLAMABAD
KARACHI
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inance Minister, Senator Mohammad Ishaq Dar said that comprehensive measures were being taken to improve and upgrade customs procedures in Pakistan in line with international standards. The Minister was talking to Visiting Secretary General, World Customs Organization (WCO), Kunio Mikuriya who called on him. Dar said that the government has also taken steps for the facilitation of cross-border and regional trade. It was agreed during the meeting that greater cooperation and linkages would be developed between Pakistan and World Customs Organization. Kunio Mikuriya said that the improvement in system of Customs under present government was very visible and impressive. Mikuriya said that WCO would be happy to cooperate with Pakistan for further improvement in system of Customs. Special Assistant to Prime Minister on Revenue, Haroon Akhtar Khan, Chairman Federal Board of Revenue (FBR), Tariq Mahmood Pasha, senior officials of Ministry of Finance were also present in the meeting.
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ort Qasim Customs has detected a Rs10.25 million misdeclaration scam by M/s Al-Aziz & Co. M/s Al-Aziz Riled goods declaration seeking clearance of a consignment comprising tyres with Rlaps of China. Imported uploaded a packing list of one particular container and the system selected that particular container for examination. The examination found the goods as per the packing list. One container was marked for examination and it was as per the declaration, eight were going through green channel. Collector Saeed Akram had the information that the importer was involved in methodical mis-declaration through jumbling of high value items into lesser quantity and low value items into higher quantity. Saeed Akram formed and R&D team headed by Additional Collector Yasin Murtaza comprising Deputy Collector Ehsan Shah, Principal Appraiser Shahid Rizvi and Appraising OfRicer Anwer Zeb. They conducted examination of all the containers that there was mis-declaration. Meanwhile, Port Qasim Customs Collectorate has detected misdeclaration scam worth Rs16.701 million by M/s Chaudhry Steel Rerolling Mills Pvt Ltd. The mills imported a consign-
govt taking measures to improve customs procedures: Dar
ment and sought clearance declaring the goods to be iron and steel remeltable and re-rollable scrap worth Rs 4.134 million. On the information of Collector Saeed Akram, the consignment was intercepted by R&D section. Additional Collector
Yasin Murtaza and Deputy Collector Ehsanullah supervised the examination of the consignment conducted by PA Shahid Rizvi and AO Insaram Rabbani. It was found the importer attempted to clear various iron and
steel items in the garb of iron and steel scrap. The goods were found to be spotting beams, over size bars and pipes, L-Section, nuts, bolts, plates, slabs, washers and wire along with scrap worth Rs 20.836 million.
court seeks challan against suspects booked in NDp toyota
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KARACHI
M B rANA
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he Customs Court Judge Syed Faiz Rasool Rashdi directed investigation ofRicer to complete investigations and submit charge sheet against suspects who are booked in a case of smuggled/ nonduty paid Toyota Hilux Surf and allegedly involved in evading taxes around Rs52,87,370. During the hearing investigation
ofRicer produced FIR and submitted that on credible information a team was constituted to watch and intercept the vehicle. The Custom’s team found the Toyota Hilux Surf, bearing Registration No: CP-0693 as a result of strict surveillance in Gulbai area, and spotted said vehicle parked near Gulbai location and occupant/driver of the vehicle introduced himself as Muhammad Nadeem son of Allah Ditta to the visiting team. He was asked to produce the documents to substantiate the
lawful import, procurement and possession of the said vehicle. He further submitted that vehicle was taken into possession in the presence of musheers namely Sepoy Mohsin Mughal and Sepoy Anisuddin under mushirnama prepared on the spot and escorted at ASO/HQ, NMB Wharf, Karachi, for detail examination and investigation and forensic test report, confirmed that no other number has been deciphered under the present chassis serial. It also shows
that M/s PRAL Customs, User Support Group, Custom House Karachi, clarified that no record was found against the import of said vehicle and MRA Karachi has responded vide letter No ETO/MRA(OR-A)4483 and intimated that origin file of vehicle had already been returned to its registered owner and provided computer-based detail report. Therefore vehicle has been seized and case was registered against Muhammad Nadeem (oc-
cupant/driver) and Muhammad Yaqoob (both absconder) for violating Section 2(s) and 32 and 178 of Customs Act, 1969 punishable under clause (8) and (89) of Section 156(I) ibid. The FIR also mentioned that notices under U/s 171 of the Customs Act, 1969, have been issued to the people involved in this matter while investigation was in progress to unearth and arrest the absconder accused involved in this act of forgery and smuggling.
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KARACHI MuBeeN huSSAIN/AFtAB chANA www.customsbulletin.com
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irector General of Directorate General of Training and Research (DGTR) Rubina Wasti has said that the customs ofRicers are being given the best training to play a wider role in the China Pakistan Economic Corridor (CPEC). Addressing a business and research seminar at the DGTR auditorium, Wasti said that importance of customs has increased due to CPEC project. She said that customs ofRicers are being given the world level training to meet the challenges, in which physical training is also included. She said that the DGTR is now the focusing on the Chinese language to Rill communication gap between the ofRicials of Pakistan and China. During the event, Deputy Consul General of China Chen Xiaodong stressed the need for foolproof security of the mega project. The deputy consul general also expressed his concern over the customs tariff, its methods as well as the land policies. He hoped that the customs procedure will be simpliRied to provide better facilities to the departments concerned.
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Saturday, July 22, 2017
Chen Xiaodong said the GDP of Pakistan has enhanced due to the mega project of Pakistan China, the total investment in the China Pakistan Economic Corridor (CPEC) stands at $80.5 billion which will increase by the time. The main theme of the seminar on the China Pakistan Economic Corridor (CPEC) encompassed over the role of the customs in the mega project where Chairman Pakistan National Shipping Corporation (PNSC), Project Director (CPEC) Ministry of Planning and Division and Research, Marketing Manager of the China Overseas Port Holding Company as well as the Director Transit Trade Quetta Chuhadry Muhammad Javed expressed their view. Meanwhile, the Directorate General of Training and Research (DGTR) will soon to start a Chinese language course for the customs ofRicials, Director General DGTR Rubina Wasti has said. Talking to Customs Today exclusively, she said that starting of Chinese language course would help facilitate the Chinese who are dealing with the customs authorities under multi-billion China Pakistan Economic Corridor (CPEC). In this regard, the authorities are in negotiation process with the management of the National University of Modern Languages (NUML) for starting the
course, Wasti added. A Memorandum of Understanding (MoU) between Pakistan Customs and NUML would soon be signed and the course would also be launched, the director general said. Being the guardian of the economic borders of Pakistan, Wasti said that the Pakistan Customs would play an important role in the CPEC. The movement of cargo will be handled and monitored by the Pakistan Customs to ensure that all the shipments are carried out in a professional manner, she said. The Chinese language is the ‘trade-related language’ and the Pakistan Customs will be at the forefront to extend maximum facilitation to the Chinese investors, Rubina Wasti said. Under the said plan, Director General Rubina Wasti said that initially the customs ofRicers dealing the CPEC matters would be imparted with Chinese language course while the nomination from all departments would also be sought for the said purpose. Moreover, the Director General said that her department is organizing a very important Business and Research Seminar on CPEC that will be addressed by concerned ofRicials about the roles, development, current status and future impact of the CPEC on Pakistan as a whole.
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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
warning from donor agency
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ccording to a report issued by the International Monetary Fund, the economy of Pakistan could face serious challenges in coming years as foreign exchange reserves have fallen below a comfortable level, exports have been declining for the last four years and the country will have to pay a massive sum of $4.5 billion under the head of the China-Pakistan Economic Corridor. The government has so far been successfully warding off external pressures to devaluate the Pakistani rupee which if allowed could fall apart the national economy like a house of cards. The international institutions have their own vested interests and approve funds only after attaching invisible strings of their orders and dictations. This government has already completed a three year extended facility programme with the fund but no one knows how the loan amount has been spent. The so-called bailout package could have been avoided by taking austerity measures and curtailing the expenditures of the presidency, the prime minister’s house, governor houses and CM houses. It is not necessary that a poor nation should always devise poor policies. The policymakers will have to set priority areas as blindly accepting loans from international donor agencies will bring the economy to a point of no return. It should be a matter of concern for the government that exports have been declining since it took over the powers four years ago. The government is also claiming that it has achieved financial stability, but the foreign exchange reserves are maintained on the crutches of foreign loans. The falling exports and increasing import bill has created trade deficit, again putting pressure on the foreign exchange reserves. The exports can only be increased if competitive business clime is created to produce value added goods. When foreign governments are involved in the investment, donor agencies are injecting loans into the economy and multi-national companies are taking interest in the business and trade in Pakistan, it is necessary for the government to adopt a multi-prong policy to cover all aspects of the economy. A point to ponder is that foreign investors come to Pakistan to make profits and not for granting alms and grants.
Strategic trade policy Framework T
LAHORE
Dr AFtAB AFZAL
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he government introduced Strategic Trade Policy Framework last year to encourage diversiRication of products, increase regional trade and expand exports to $35 billion by 2018. However, the framework failed to meet its objectives in utter disappointment of the business community and the nation. Experts believe the cumbersome procedure and ofRicial rigmarole are the basic ingredients of its failure coupled with ill-structured mechanism to avail the scheme. Most of the funds, earmarked under the scheme, have been lapsed and the Ministry of Commerce
has now started working on a new policy to unveil it in six months. Meanwhile, the exports are continuously been falling and 25 percent of its volume have been washed away in four years of the Pakistan Muslim LeagueNawaz government. The government ministers are not tired of claiming that they want to enhance business and trade to change the lot of this nation. However, the government thrust is still on its political relations with other countries rather than economic relations. Pakistan apparently has cordial relations with Saudi Arabia and other gulf countries, but the government could not negotiate business deals with any of the states. Saudi
Arabia is the biggest country in the world having billions of dollars religious tourism industry, but Pakistan’s share in the business is negligible as compared to the European countries. Even China has expanded its volume of business despite it has minimal diplomatic relations with Saudi Arabia. It appears the Pakistani policymakers live in isolation and will never understand the dynamics of the economy and business. The western nations are taking their share of business in Gulf States but the thrust of Pakistani government always remained on the export of unskilled labour force. The Commerce Ministry is now in process of consultation with export asso-
ciations and other stakeholders to bring a fresh version of the policy framework before the budget 2017-18. But the mandate of the present government will be at the brink of closure and the new government will bring new set of policies. Pakistan has trade missions all over the world with qualiRied commercial attachés drawing heavy perks and salaries. However, no one at home has spare time to check their performance. This is the exercise the government machinery has been doing since the country’s inception. Until and unless a sincere and capable leadership comes to power, the vicious circle of make and break will continue to haunt the nation.
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Philippines put no blanket ban on Brazilian meat imports Saturday July 22, 2017
World
MANILA: The Philippines is not contemplating a blanket ban on meat importations from Brazil despite the salmonella outbreak in that country, because it has identified the single supplier that was the source of the tainted meat, the Agriculture department said. “We have discussed this and the salmonella tainted meat actually came from just one supplier so we will ban that supplier, we will ban that facility. The other entire test conducted in other facilities turned out negative for salmonella so there will be no total ban; it will be just a ban on that facility that exported the contaminated beef,” Agriculture Secretary Manny Piñol told Bloomberg TV Philippines in an interview with Regina Lay.
cBp officers seizes 72 pounds kSA Industrial energy city to contribute $6b of liquid methamphetamine RIYADH
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EL PASO
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S Customs and Border Protection OfRice of Field Operations ofRicers working at the El Paso port of entry seized 72 pounds of liquid methamphetamine Thursday. The drugs were disguised as bottles of liquid detergent. “Smugglers will try to use everyday items in an attempt to conceal their contraband from the watchful eyes of CBP ofRicers,” said Beverly Good, CBP El Paso Port Director. “The layers of enforcement CBP employs will identify many of these techniques.” The seizure was made just before 11 p.m. at the Ysleta international crossing when a 1994 Ford Econoline with a female driver entered the port from Mexico. A CBP ofRicer performing a primary inspection noted anomalies in the appearance of three bottles of liquid
russia-china trade up 25.7% in first half of 2017 rade between Russia and China went up by 25.7% in the first half of 2017 on a year-on-year basis and reached $39.78 billion, China’s main customs authority said in a report on Thursday. In JanuaryJune 2017, China’s exports to Russia increased by 22.2%, to amount to $19.44 billion, while its imports from Russia went up by 29.3%, to stand at $20.34 billion. In June 2017, ChinaRussia trade was $7.45 billion. Chinse exports stood at $4.1 billion, while its imports from Russia were $3.35 billion. In 2016, trade between the two countries grew by 2.2% on the previous year and reached $69.52 billion. Meanwhile, Armenia is discussing the issue of getting a new military loan with Russia, finance minister Vardan Aramyan said on Monday. –CB Report
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detergent present in the vehicle. A CBP drug snifRing dog searched the vehicle and alerted to the bottles. CBP ofRicers scanned the vehicle with the Z-Portal x-ray system which also identiRied suspicions with the detergent bottles. The contents of the bottles tested positive for methamphetamine. CBP ofRicers took custody of the
driver, a 41-year-old U.S. citizen. She was turned over to U.S. Immigration and Customs Enforcement HSI agents to face charges associated with the failed drug smuggling attempt. In addition to this seizure CBP ofRicers working in the El Paso area made Rive additional drug busts and recorded three fugitive arrests on a busy Thursday.
Fake Indian drugs container seizes by Nigerian customs
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he Nigeria Customs Service (NSC) Federal Operations Unit (FOU), Zone A, wednesday announced that it had arrested a 40-feet container loaded with fake drugs imported from India. The Comptroller of FOU, Mohammed Uba Garba, who disclosed this during a press briefing in Lagos, stated that the 1,442 cartons of drugs (Tramadol225/120mg) in container number MSKU 98895
1X40ft and a MAN Diesel truck with Reg no. RRU 513 XA, were intercepted along Apapa-Oshodi and Benin-Ijebu Ode expressways. He said his anti-smuggling effort also led to the seizure of seven other containers that contravened customs law by means of false declaration and breach of import prohibition list by trade. “While three of the containers carried 5,014 pieces of used tyres. –CB Report
he planned Industrial Energy City project, to be developed in Saudi Arabia’s Eastern Region, will provide thousands of direct and indirect jobs and contribute SR22.5 billion ($6 billion) to the nation’s economy, said Engineer Khalid bin Abdulaziz Al-Falih, Minister of Energy, Industry and Mineral Resources. Al-Falih, who is also the chairman of Saudi Aramco and of Saudi Industrial Property Authority (Modon), thanked King Salman bin Abdulaziz Al Saud for his directive to establish the Industrial Energy City, said a Saudi Press Agency report. He said the project aims at localising industries supporting the energy sector and cover industries related to oil exploration, production and reRining, petrochemicals, conventional electric power, water production and
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treatment. He pointed out that the decision to establish a new industrial city for energy is in line with the kingdom’s vision 2030 and supports the vital infrastructure of the supply chain in the kingdom. The localisation of new industrial and service facilities that help to innovate, develop and compete globally, he said. Saudi Aramco president and chief executive ofRicer Amin Hassan Al-Nasser said: “The new Industrial Energy City in the Eastern Region will be a strategic project and a milestone in the efforts of localisation of energy-related industries and services and it will be an ideal and integrated environment for attracting international companies’ investments, establishing and developing a large number of small and medium companies and stimulating innovation and entrepreneurship. This invites us to encourage our partners across the supply chain in the kingdom and the world to take advantage of trained local workers and opportunities that will be available there.”
Armenia mulls new military loan from russia rmenia is discussing the issue of getting a new military loan with Russia, Rinance minister Vardan Aramyan said on Monday, July 17. The minister did not divulge details concerning the amount of the loan, revealing only that consultations have started this year, RFE/RL Armenian Service reports. According to him, some $30 million remain from a previous $200 million Russian loan which will be spent on military goods. Besides the abovementioned $200 million loan, Armenia has also acquired Iskander missile systems from Russia which were Rirst displayed during a mili-
tary parade marking the 25th anniversary of Armenia’s independence in September 2016. Meanwhile, According to the results of the auction, the right to develop the Erginskoye deposit was received by Rosneft, said Minister of Natural Resources Sergey Donskoy. According to him, 17 steps were taken by the participants of the auction, in which along with Rosneft, the companies RN-Uvatneftegaz, Gazpromneft-Khantos and PioneerGeo took part. As a result, the last move was made by Rosneft, which offered 20.071 billion rubles ($330m) for the last free large deposit of Russia. –CB Report
Iran, oman agree to boost ties amid gulf crisis
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TEHRAN
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ran and Oman have agreed to work on boosting bilateral ties as a diplomatic crisis persists in the Gulf. “Iran and Oman have for years had fraternal relations and the best must be made of these good relations to reinforce them,” Iranian
President Hassan Rouhani said as he met Oman’s foreign minister late on Wednesday. The Iranian government’s website reported Foreign Minister Yusuf bin Alawi as replying: “Omani leaders believe our ties should be developed.” The meeting comes as Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed ties with Qatar, accusing it of backing terrorism and being too
close to Riyadh’s rival Tehran. Rouhani slammed the sanctions imposed by the Riyadh-led group on Doha. “Threatening, pressuring and imposing a blockade against neighbours, including Qatar, is an erroneous method and everyone must try to reduce the tensions in the region,” he said. He also criticised “the policies of certain countries in the region against Syria, Yemen and
Bahrain”, in what appeared to be a reference to Saudi Arabia. Iran increased its food exports to Qatar after its Gulf neighbours cut transport links to the emirate. Oman, which is a member of the Gulf Co-operation Council, has maintained ties with Qatar and took part this week in a string of Kuwaiti and US-led talks towards resolving the crisis.
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Hashish weighed 14-kg worth Rs1.5m confiscated KARACHI: The Customs Collectorate Gwadar has foiled a smuggling attempt and seized 14-kilogram hashish in a raid. The value of the seized hashish in the international market is Rs1.5million. According to details, Collector Gwadar Saeed Akram received a tip-off regarding the transportation of narcotics in Bara Area. He immediately constituted a team of Customs Anti-Smuggling Organization (ASO) to curb the smuggling bid. The team, under the supervision of Inspector Sardar Qadeer, started a search operation in the Bara area.
Saturday, July 22, 2017
CUSTOMS BULLETIN
pcA serves three contravention reports upon M/s BM technologies KARACHI AFtAB chANNA
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he Directorate of Post Clearance Audit (PCA) has issued three contravention reports against importer M/s BM Technologies for evasion of duty/taxes to the tune of around Rs1 million on import of Sulphur Bentonite. According to sources, M/s BM Technologies imported consignments of ‘sulphur bentonite’ under PCT Heading 3105.9000 and cleared the same with active connivance of their clearing agent M/s Rabia Shipping Agency through Customs Appraisement (East) paying CD @0%. The subject goods, however, are correctly classiRiable under PCT heading 3824.9099 where customs duty is leviable at the rate of 10%. The mis-declaration of classiRication is also conRirmed by the public notice no. 16/2015 (EAST) dated 03.10.2015, wherein, the dispute of granular straight Sulphur fertilizer comprising of Sulphur and Bentonite mixture has been resolved by classifying the subject description under PCT heading 3824.9099. Thus, M/s BM Technologies by
way of mis-declaration of PCT deprived the national exchequer of its legitimate revenue of duty and taxes to the tune of Rs725,061, Rs 92,177 and Rs87,866. Therefore, the importer, has vio-
lated the provisions of Section 32 (1) (2) & (3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 34 of the Sales Tax Act 1990 and Section 148 of Income Tax Ordinance 2001 punishable under
clauses (1), and 14 of Section 156(1) of the Customs Act 1969, Section 33(5) of the sales tax Act, 1990 and Section 148 & 182 of Income Tax Ordinance 2001 and section 7A of the Sales Tax Act 1990
read with chapter X of the Sales Tax Special procedure Rules 2007 (special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.
ANF, Sindh govt to join hands against drug use KARACHI
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he Sindh government in order to address the health issues of school children and spread of narcotics in educational institutions has decided to conduct blood screening of all the students receiving education in public and private sectors in the province once in a year.
This was decision was taken by Sindh Chief Minister Syed Murad Ali Shah in his meeting with Director General Anti-Narcotic Force (ANF) Major General Musarrat Nawaz Malik at the CM House. The meeting was attended by Secretary Health Fazal Pechuho, Secretary Home Qazi Shahid Pervez, Principal Secretary to CM Sohail Rajput and Commander ANF Karachi Noorul Hassan. Chief Minister said that after going through the news reports of usage of narcotics by the students of educational institutions
in federal capital, he has become worried about the students receiving education and living in hostels in Sindh. “I want you [DG ANF] to help Sindh government
to combat this menace,” he asked DG ANF. The DG ANF said that he was also conscious about the issue and his force has started working on it. “On this ANF needs support of provincial government for which your [CM] guidance and approval was required and you have entrusted us and the ANF would produce congenial the results,” he said. The Chief Minister said his government has already launched a targeted operation against drug mafia. The ANF has to help the provincial government to eliminate the
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organized gangs involved in supply of narcotics items in the city. “When they [drug mafia] move unchecked they can penetrate anywhere particularly into the educational institutions,” he said and added “there should be a strong mechanism of surveillance for which police, Excise & Taxation would help and support ANF,” he assured. The meeting also discussed that the blood screening of student receiving education in public and private sector is most important in terms of keeping an eye on their health issues.