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Karachi, Mon July 24, 2017

KARACHI

AFTAB CHANNA

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he Collectorate of Customs, Preventive Karachi, will receive two patrolling boats within a few months that would help further enhance monitoring and enforcement activities in its territorial waters, said Collector Preventive Dr Saifuddin Junejo. In an exclusive interview with Customs To-

day, the collector said that the patrolling boats would cost Rs 290 million and the boats would be delivered in a few months. Karachi Shipyard Engineering Works will deliver the boats to the customs. The Collector Preventive invited bids in the recent past in which the Karachi Shipyard Engineering Works had been qualiOied and hence the tender was awarded to it. “The plan to procure patrolling boats was initiated last year, but it

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could not be materialized due to some technical issues and the lapse of funds. However, this time, the plan would get on as the boats would be handed over to us within six months,” Collector Junejo added. In the present scenario, smugglers are using sea routes to smuggle Iranian diesel and contraband items, he said, adding that the AntiSmuggling Organization (ASO) has been maintaining a vigil and all the bids have been foiled.

‘Customs Preventive toget patrollingboats to curb smuggling through sea routes’

Customs Central Region collects Rs 1,179 million till July 15

BBIAI Accompanied Baggage generates Rs2.22m of duty & taxes

Indonesia cooperates with Taiwan to uncover drug smuggling

Customs ASO impounds non-duty paid luxury cars worth Rs 6 million

Customs, Preventive, will receive two patrolling boats within a few months | SEE PAGE 01 |

The Customs Central Region has collected Rs 1,179 million customs duty | SEE PAGE 02 |

The Customs Accompanied Baggage Section (AB) of the BBIA Islamabad | SEE PAGE 04 |

The National Police have cooperated with theTaipei Police to investigate the case | SEE PAGE 07 |

Customs ASO has impounded four illegally imported luxury vehicles from various | SEE PAGE 08 |

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Finance ministry ignores FBR’s Road To Seven Trillion project Monday, July 24, 2017

National

ISLAMABAD: The Ministry of Finance has ignored the Federal Board of Revenue’s significant revenue collection project Road to Seven Trillion and no funds have been allocated for the project in the current budget 2017-18. Under this project, it has been proposed that eleven new Regional Tax Offices will be established in all over the country but, due to lack of funding, till now only one new Regional Tax Office of Sahiwal has been established and establishment of the Gujrat Regional Tax Office is still pending.

Customs Central Region collects Rs 1,179 million till July 15

ISLAMABAD

LAHORE

CUSTOMS BULLETIN REPORT

M HAYAT

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he Anti-Smuggling Organization (ASO) Islamabad impounded 36 imported smuggled LEDs along with an oﬀending vehicle (vehicle used for carrying smuggled goods) valued Rs2.00million on Saturday night from Motorway Toll Plaza. According to details explained by Superintendent ASO Islamabad Rana Shakeel while talking with Customs Today, he said that on a tip-off, the ASO Islamabad set up a picket on the Islamabad Motorway Toll Plaza and intercepted a Toyota Hiace Van with registration No: P-1523. The van was coming from Peshawar. After the interception of the said offending vehicle, the ASO Squad asked the possessors of the smuggled goods to show the legal documents of the loaded goods but they failed to provide any relevant proof in support of the loaded items. Rana Shakeel further said that after that, the ASO staff confiscated the smuggled goods which comprised fourLEDs TVs of 70 inches, 20 LED TVs of 40 inches and 12 LED TVs of 32 inches. According to him that the value of the impounded goods, including offending vehicle, was estimated Rs2.00million.

he Customs Central Region has collected Rs 1,179 million customs duty during the Oirst 15 days of July 2017. Sources told Customs Today that the Customs Appraisement Lahore collected Rs 653 million customs duty while the Customs Preventive Lahore collected Rs 350 million during the period under review. While on the other hand, the Collectorate of Multan under the supervision of Collector Saud Imran Ahmed collected Rs 39 million customs duty (CD) during month of July 2017. In the same way, the Collectorate of Customs Faisalabad under the supervision of Collector Mohammad Sadiq collected Rs136 million customs duty during the month. Overall the Central Region collected all duty and taxes from all the four Collectorates worth Rs 1179 million to achieve the targets. The sources said that the Collectorate of Customs Central Region have started their maximum efforts to achieve the Oinancial year targets. Meanwhile, Customs Central Region has collected Rs7455 million under the head of customs duty (CD) by posting a growth of 7 percent when compared with the same month’s target during previous Fiscal Year 2016-17. As per details the Customs Col-

ASO impounds NDP vehicle, goods worth Rs 2 million

lectorate of Lahore Appraisement collected Rs 4531 million under the head of customs duty (CD) during period under review while Customs Collectorate of Lahore Preventive collected Rs1054 million during the month under review. While on the other hand, the Collectorate of Customs Multan col-

lected Rs1484 million customs duty (CD) during the month of June 2017. In the same way, the Collectorate of Customs Faisalabad collected Rs385 million customs duty during the month of June 2017. Overall the Customs Central Region collected all duty and taxes from all the four Collectorates worth Rs 7455 mil-

lion to achieve the assigned revenue collection targets. The sources said that the Collectorate of the Central Region put their maximum efforts to achieve the financial year targets and the collection of customs duty in the final month of June proved instrumental in achieving overall target.

FBR collects over Rs100 billion in 15 days with 30% growth

ISLAMABAD

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he Federal Board of Revenue (FBR) has collected more than Rs100 billion in Oirst 15 days of new Oiscal year (2017-18) with 30 per cent growth over the same period of previous Oinancial year. FBR Spokesman Dr Muhammad Iqbal told media said that the Board has issued most statutory regulatory orders (SROs) related to budgetary

measures, which has caused surge in tax collection. “We have received more than Rs100 billion in the Oirst two weeks of the current month,” another tax ofOicial said, noting that it was the highest monthly revenue collection in the past few years. Last year, the revenue collection in July was around Rs150 billion. “We expect to cross this Oigure comfortably,” the ofOicial said. The FBR usually collects advance taxes in its attempt to achieve annual revenue targets, which are then adjusted in the Oirst couple of months of

the next Oiscal year. “The growth shows that the FBR has not taken advance taxes,” the ofOicial claimed. The government projected a revenue collection target of around Rs4 trillion for 2017-18 on the pretext that the collection in the last Oiscal year would be Rs3.42tr. However, the actual collection in 2016-17 stood at Rs3.37 trillion, leaving a shortfall of Rs47 billion. FBR Member Operation Inland Revenue Khawaja Tanver said that it would be a very ambitious revenue target for the current Oiscal year.

Meanwhile, The Finance Committee of the Senate has ordered the Chairman Federal Board of Revenue, Tariq Mehmood Pasha, that correct information in a report of the amnesty scheme of the vehicle should be produced before the committee meeting on Tuesday. The committee had observed a mistake in the brieOing regarding the amnesty scheme for motor vehicles provided by the Federal Board of Revenue and sent back to the FBR for correction and clariOication. A meeting of the Standing Com-

mittee of the Senate on Finance, Revenue and Economic Affairs and Privatization will be held on 18th of July in the committee Room No: 1 on 18th of July 2017 at the Parliament House under the chairmanship of Senator Saleem Mandviwala. Chairman FBR Tariq Mehmood Pasha and Member Operation Rehmat Ullah Wazir will brief the committee on the steps taken on the issue of gift arrangements by 2785 individuals through money laundering and on amnesty scheme for motor vehicle.

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ISLAMABAD

TARIQ DERYA

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he Customs Accompanied Baggage Section (AB) of the Benazir Bhutto International Airport Islamabad collected Rs2.22million of duty and taxes applied to baggage per kilogram during the 1st to 19th of July Financial Year (FY) 2017-18. The AB section earned Rs3.49million surplus revenue against the assigned target during FY2016-17. The AB set Rs27.68million of revenue target for FY16-17 whereas it did Rs31.17million during FY2016-17 against the allocated revenue target. Assistant Collector AB Sadia Usman gave such details during an exclusive interview to Customs Today. She said the performance of the AB has been good during 19 days of the current month of July FY2017-18. The AB section also showed tremendous performance during FY2016-17. Telling details of FY2016-17, she informed CT that during FY2016-17, the AB seized three cases of heroin smuggling worth Rs220.50million while it seized three cases of foreign currencies priced Rs22.09million in the international market. The said seized currencies comprise

485,800 Saudi Riyals (SR), 49,500 Qatari Riyals, 6,000 UK Pounds and 6,000 Euros. The total value of the seized foreign currencies is Rs22.90million. During FY2016-17, the AB seized 24 cases of mobile phones valued Rs53.40million whereas it conOiscated two cases of gold smuggling priced Rs4.86million. During June FY2016-17, about Rs3.065million was earned whereas the AB did Rs2.24million of revenue during May FY2016-17. Sadia Usman, Assistant Collector AB, told CT that during the month of April FY201617, the AB

ce of orman f r e p uring id the good d She sa n e e b th of has t mon n e the AB r r u ec ection s of th e AB s h T 19 day . 8 1 dous 2017remen July FY t d e 6-17 ow FY201 also sh g n i r u d mance perfor

received Rs2.82million while it did revenue of Rs2.92million during the month of March FY2016-17. During the month of February FY2016-17, the AB generated Rs2.81million of revenue on Accompanied Baggage. During January FY16-17, the AB collected Rs2.56million. Sadia said that during the month of December FY2016-17, the AB earned Rs2.67million while it did Rs1.98million of revenue during the month of November 2016-17. She further said that during the month of October FY16-17, the AB got Rs1.908million of revenue and it did Rs3.02million during the month of September FY16-17. Assistant Collector told CT that during the month of August FY16-17, the AB received Rs2.46million of revenue whereas it did Rs2.68million of revenue during the month of July FY16-17. She told CT that the AB surpassed its assigned target for corresponding FY201617 because of the guidance of Collector Model Customs Collectorate Islamabad and Chief Collector North Madam Sarwat Tahira Habib. During FY2015-16, the AB was allocated the target of Rs22.84million while during FY16-17 it was assigned to collect the revenue worth Rs27.68million.

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Monday, July 24, 2017

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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

Strategic Trade Policy Framework

he government introduced Strategic Trade Policy Framework last year to encourage diversification 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 official rigmarole are the basic ingredients of its failure coupled with illstructured 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 League-Nawaz 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 associations and other stakeholders to bring a fresh version of the policy framework before the budget 201718. 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 qualified commercial attachés drawing heavy perks and salaries.

Strategic Trade Policy Framework T

LAHORE

DR AFTAB AFZAL

www.customstoday.com

he government introduced Strategic Trade Policy Framework last year to encourage diversiOication 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 ofOicial 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 qualiOied 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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Swiss forex first timers deposit most in May 2017 Monday July 24, 2017

World

SWITZERLAND: The latest report from the Finance Magnates Intelligence Department and the retention automation firm CPattern shows that Switzerland was the best market for getting new deposits on the global forex trading map during the month of May 2017. Surprisingly, following the wealthy, developed nation of Switzerland some relatively poor developing nations made it onto the list of top ten highest average first time deposits in May. These include Belarus, Peru, Guatemala, Ecuador and Swaziland. Switzerland was also high on the list of overall average deposits, behind only Singapore. Unsurprisingly, most of the entries are rich European, Gulf and APAC nations. Belarus was the only representative of the poorer parts of the world this time.

Indonesia cooperates with Taiwan Hobby Lobby fined $3m over smuggled artifacts to uncover drug smuggling KABUL

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TAIPEI

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he National Police have cooperated with the Taipei Police to investigate the case of one ton of shabu-shabu (crystal methamphetamine) smuggled into Serang, Banten, from Taiwan. On Sunday, police ofOicers and Oive investigators from the Criminal Investigation Division (CID) of the Taipei Police lead by Col. Jay Lee staged a reconstruction of the case, beginning with when the receiver got the shabu-shabu from the Wanderlust ship crew. Riau Island Police Chief Insp. Gen. Sambudi Gusdian said the police could uncover the case after receiving information from the Taiwanese police through the Jakarta Police narcotics directorate in February. Sambudi also said that the joint task force from the Jakarta Police, Riau Islands Police

France to cut 11B euros in taxes next year rance will cut taxes on businesses and individuals by roughly 11 billion euros ($12.6 billion) next year, faster than the government had originally intended, Prime Minister Edouard Philippe has said. The goal is to create incentives for investment, hiring and economic growth, Philippe told Les Echos daily in an interview published on its website late Tuesday. President Emmanuel Macron has promised to put France’s financial house in order, with plans to cut taxes by a total of 20 billion euros over his five-year term. At the weekend, Philippe had indicated tax cuts of around 7 billion euros for next year. “But last week, with the president, we decided to accelerate the rhythm in order to get the most economic impact from this strategy,” he told Les Echos. –CB Report

and Customs Duty ofOicers had examined the facts and Oindings from the Wanderlust ship. “Based on the facts and Oindings, everything is a match. All the shabu-shabu came from Taiwan,” he said. Sambudi said according to information from Taiwan, the ship traveled from the

country to Johor Bahru in Malaysia before reaching Aceh and Serang. He said the task force team would check the ship’s log book to investigate where it had traveled. The team would also open the lower compartment to check whether any shabushabu was left on the ship.

Transocean Ltd (Switzerland) (RIG) rises 2.97% for July 13

mong the biggest risers on the S&P 500 on Thursday July 13 was Transocean Ltd (Switzerland) ($RIG), popping some 2.97% to a price of $8.31 a share with some 9.65 million shares trading hands. Starting the day trading at $8.10, Transocean Ltd (Switzerland) reached an intraday high of $8.36 and hit intraday lows of $8.06. Shares gained $0.24 apiece by day’s end. Over the last 90 days, the stock’s av-

erage daily volume has been 12.97 million of its 391.05 million share total Oloat. Today’s action puts the stock’s 50-day SMA at $9.29 and 200day SMA at $11.73 with a 52-week range of $7.67 to $16.66. Transocean Ltd is an international provider of offshore contract drilling services for oil and gas wells. Its business activities include contracting drilling rigs, related equipment and work crews to drill oil and gas wells. –CB Report

round 10 packages were shipped to the Oirm, Oive intercepted by customs which had shipping labels falsely declaring that the artifacts came from Turkey. “We should have exercised more oversight and carefully questioned how the acquisitions were handled”, Hobby Lobby President Steve Green said Wednesday. The family that owns the company is also bankrolling a $500 million Museum of the Bible slated to open in Washington in the fall. “The Company. did not fully appreciate the complexities of the acquisitions process”. The result, insisted the company, were “some regrettable mistakes”. “Hobby Lobby has cooperated with the government throughout its investigation, and with the announcement of to-

day’s settlement agreement, is pleased the matter has been resolved”. The Justice Department announced a settlement with the Oklahoma-based store chain on Wednesday, which says Hobby Lobby began bringing the items into the country, from Iraq, almost a decade ago. Visit an antique shop in the UAE’s Abu Dhabi, Dubai or Sharjah, and there is a good chance that numerous items for sale are from Afghanistan. Hobby Lobby said that company ofOicials didn’t understand the rules for properly bringing antiquities into the country. It is unknown if any of the packages were delivered to the Santa Clarita Hobby Lobby, but a manager at the store said the location was purely retail based, and had no knowledge of any corporate packages moving through the store. Once they are sold on the black market, and most likely sold again and again, the likelihood is high that they will never return to their provenance.

Switzerland supports Ghana with $80m he Federal Republic of Switzerland has earmarked an amount of $80 million to support the enhanced competitiveness of Ghanaian enterprises in the global market space, as well as help in government’s efforts at diversifying the Ghanaian economy. Ghana has been classiOied by Switzerland’s State Secretariat for Economic Affairs (SECO) as a priority country for economic development, resulting in the signing of the Swiss co-operation strategy for Ghana. President Akufo-Addo made this known on Wednesday, 12th July, 2017, at a joint press conference held with

the President of Switzerland, Her Excellency Doris Leuthard, at the Presidency, after bilateral talks between the two countries. The teams from Ghana and Switzerland held discussions in the areas of Foreign Affairs, UN Reforms, Finance, Security and Agriculture, aimed at deepening the bilateral relations existing between them, as well as exploring other areas of co-operation. President Akufo-Addo disclosed that the two countries underlined and reinforced their co-operation in helping to end the scourge of terrorism, and the threats to peace and sustainable development in Africa and the world. –CB Report

PetroPeru uses argus to price gasoline, diesel imports

AMMAN

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eruvian state-owned oil company PetroPeru has begun issuing import tenders for refined petroleum products using price assessments from global commodity price reporting and news agency Argus.

PetroPeru — which supplies more than half of Peru’s 250,000 b/d refined products market has issued a request for proposals to supply four cargoes of ultra-low sulphur diesel (ULSD) priced on the Argus Colonial pipeline ULSD index, for delivery in August. A separate tender was issued on 6 July for two combined cargoes of naphtha and gasoline blendstock

indexed to Argus Colonial pipeline conventional gasoline for August-September delivery. Argus Media chairman and chief executive Adrian Binks said: “We are delighted that PetroPeru has expressed its confidence in Argus’ refined product indexes. This continues a trend that has seen Latin American countries increasingly turn to Argus pricing

in recent years.” Argus is the world’s largest independent price reporting agency, producing price assessments that are used extensively by governments as independent references for taxation and other purposes. Energy producers and consumers use Argus assessments as price references for long-term supply contracts.

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Customs Port Qasim collects Rs 22.35b during first 18 days of July 2017 KARACHI: The Customs Collectorate Port Qasim collected Rs 22.35 billion under the head of duty and taxes during first 18 days of July 2017. Sources told Customs Today that the collectorate collected Rs 7.90 billion customs duty, Rs 12.9 billion sales tax, Rs 2 billion income tax and Rs 190 million federal excise duty during the period. Sources said that as compared with first 15 days of June, the Customs Collectorate Port Qasim collected Rs 18.23 billion in duty and taxes.

Monday, July 24, 2017

CUSTOMS BULLETIN

Customs ASO impounds non-duty paid luxury cars worth Rs 6 million LAHORE M HAYAT

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ollectorate of Customs Preventive Anti- Smuggling Organization (ASO) has impounded four illegally imported luxury vehicles from various localities in the city. OfOicial sources told Customs Todaythat on the directions of Collector of Customs Preventive ZulOikar Ali Chaudhary, the ASO Lahore team led by Deputy Collector Moazzam Raza undertook crackdown against smugglers of illegal luxury cars. The team operating against the smuggled vehicles seized Mark-x from Johar Town being played by one Muhammad Rizwan. The team seized second hand vehicle Honda Civic from Wapda Town being used by one Ijaz Bukhari while the team also seized Honda Accord from Kot Lakhpat being used by an unidentiOied person. Similarly Customs team impounded smuggled Vitz from one Salim who was driving the vehicle on the Ferozpur Road. The ofOicial sources said that the vehicles total value was estimated at Rs6 million. The customs authorities registering cases against the accused per-

sons have initiated further investigation in to the cases. The ASO team that made the successful attempt the vehicles which

were being illegally roaming on the city roads included Superintendent Nasir Minhas, Mazhar Bhutter, Sajjad Bukhari and others.

The sources said that the owners of the vehicle were failed to produce any legal import document s when the customs authorities de-

manded the documents against the vehicles. The customs authorities being fully satisOied Oinally impound the vehicles under Customs Act.

PCA serves contravention notices on LED light importers KARACHI

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he Directorate of Post Clearance Audit (PCA) has served contravention notices on eight LED lights importers for claiming inadmissible concessions and causing national exchequer Rs21 million worth losses. On the directives of Karachi PCA Director Gul Rehman,

Deputy Director Sajid ali Baloch and his team comprising Appraising Officers Faiz Mudasser and Azhar Abbas conducted scrutiny and audit of import data. It was found that several importers imported consignments of “LED Lights with Fittings and Fixture (ceiling, panel light use for solar) under PCT heading 9405.1090 and cleared the same and claimed the benefits of Fifth Schedule (Customs Duty) Part I24, Sixth Schedule (Sales Tax)15.2- 25/06/20 and Income Tax at zero percent. The exemptions are only avail-

able to SMD, LEDs with or without ballast with fittings and fixtures for promotion of the renewable energy technologies. Whereas, clause 77 part-IV Second Schedule of Income Tax Ordinance, 2001 is more restrictive and allows exemption to items with dedicated use of renewable source of energy which includes sources like solar and wind power only. The examination staff in their examination report has not confirmed that the imported LED Lights are for solar or wind energy use. It appears from the ex-

amination report that the imported items are for general use as these are operative / works under alternating current (AC) of voltage ranges 86 -265 volts which is the normal thermal / hydral power sources normally produced and used in Pakistan National Grid. The images scanned by the examination staff and examination report shows goods are operative at voltage as 86 – 265 volts. It is an undeniable proof that the imported goods are not meant for to work / operate with the renewable energy sources like Solar Energy or Wind

Published by M S Raza Oﬀ# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,oﬀ I.I. Chundrigar Road, Karachi

Energy. Further it transpires that the imported goods operate on alternating current (AC) voltage rather than on direct current (DC) which is used / and operate in the renewable energy technologies. Therefore, the concessions under the claimed notifications are not available to the subject imports. The importers served contravention include M/s Bhutta International, M/s Green Globe Pvt Ltd, M/s Kinjhar International, M/s Marvi International, M/s Num Traders, M/s R.J Corporation, M/s ZAH International, M/s Zamir Trading Co.