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Karachi, Wed July 5, 2017

ISLAMABAD

M FAIZAN

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he government has appointed Grade-22 Inland Revenue Service ofQicer Tariq Mehmood Pasha, presently posted as Secretary Economic Affairs Division, as Chairman FBR and Secretary Revenue Division. A notiQication, in this regard, has been issued by Deputy Secretary Establishment Division Mohammad Hamza Shafqaat on Monday

evening, 3rd of July 2017. New FBR Chairman will assume the charge of his new ofQice tomorrow (Tuesday). Meanwhile, ISLAMABAD: Tariq Mehmood Pasha, the newly appointed chairman of the Federal Board of Revenue (FBR), has served on various positions in the federal and Punjab governments. He has served as deputy director of the National Accountability Bureau (NAB), general manager of the Pakistan Electric Media Regulatory Authority, secretary of the Punjab government, secretary of the Auqaf and Religious Affairs Department, Lahore, secre-

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tary to the Punjab governor, commissioner of the Human Resources Management Regional Tax OfQice, Lahore, joint secretary of the Prime Minister Secretariat and Finance Division, member administration of the FBR and special advisor to the FBR chairman, secretary of the Central Board of Revenue, additional secretary in Finance Division, special advisor to the Qinance minister and secretary incharge in the Economic Affairs Division. He also took part in different courses during his career, including Common Training Program from Civil Service Academy, Specialized Training Program from Directorate of Training and Research (Income Tax) Lahore, Micro Computer Application Course from Pakistan Computer Bureau Islamabad and 98th National Management Course (NMC) from National School of Public Policy Lahore.

Collector Adjudication orders impounding of Pak-Afghan currencies & vehicle

Court sends suspect on physical remand in gold smuggling case

ASO impounds NDP inverter, air conditioners, washing machines

Pakistan Railways revenue increases to Rs20b: Saad Rafique

First energy project under CPEC completed: Khurram Dastgir

Collector Adjudication impounding of the smuggled Pak & Afghani currencies | See pAge 02 |

Courtjudgehassentasuspect,Saleem,tothe customs department on physical remand | See pAge 03 |

ASO raided the premises of Ghulab and recovered huge quantity of smuggled | See pAge 04 |

Pak Railways has experienced surge of more than Rs. 20billion in revenue | See pAge 14 |

Dastgirchairedameetingasaguestofhonor, between Pak Readymade & Exporters | See pAge 16 |

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IHC takes up customs cases ﬁled by diﬀerent companies Wednesday, July 5, 2017

ISLAMABAD: A division bench of the Islamabad High Court (IHC) on Wednesday dated in office the hearing of a customs reference filed by Directorate General of Intelligence and Investigation, Islamabad. The IHC bench comprising Justice Athar Minallah and Justice Mohsin Akhtar Kayani heard the case and adjourned for post Eid hearings. The FBR field office had filed the case against M/s Smart Zone (Private) Limited and others. Directorate General of Intelligence and Investigation had challenged the announcement made by Customs Appellate Tribunal.

Islamabad

collector Adjudication orders impounding of pak-Afghan currencies & vehicle

ISLAMABAD

cuStoMS BuLLetIN report

M FAIZAN

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he Large Taxpayers Unit Islamabad has surpassed the revenue target of Rs72billion by Rs20billion. Now the total revenue is Rs92billion. While yesteryear, (Financial Year (2015-16), Large Taxpayers Unit had earned Rs72billion which was less than the assigned target set by the FBR. The Large Taxpayers Unit has collected 24 percent more revenue than yesteryear. Chairman Federal Board of Revenue DR. Irshad and Member Operation Rehamat Ullah Khan Wazir have lauded the performance of the LTU, especially efforts of Chief Commissioner Noshad Ali Khan and his team, which comprises four Commissioners including Dr. Bashir Ullah, Amir Ali Khan Talpur, Ahmed Shujah Khan and Asim Majeed. There are two major clients of Large Taxpayers Unit Islamabad who are Pakistan Tobacco Company and Oil and Gas Development Company Limited which contributed a huge amount of taxes in the form of Federal Excise Duty and Sales Tax. Sources told Customs Today that it is the highest revenue collection in the history of the Large Taxpayers Unit Islamabad.

ollector Customs Adjudication Islamabad Ihsan Ali Shah has ordered the impounding of the smuggled Pakistani and Afghani currencies equal to Rs10.322million and a vehicle Toyota Pickup in favor of the state. Collector Adjudication has passed the Order-in-Original No: 90 of 2017 in the seizure case of currency smuggling reported by the FC Peshawar. Collector Adjudication held that the seized currencies were smuggled by putting them into the spare wheel of the vehicle therefore no defence has been offered by Muhibullah and Zari Gull (Respondents) and his legal counsel. The FC troops of Kurrum militia recovered the currencies at Arawali Checkpost who intercepted them on the information of smuggling arms and ammunition. On demand by the FC authorities, both accused failed to prove the lawful possession of the recovered Pak Afghan currencies. It is important to mention here that the photographs shown by the seizure agency revealed that the currency packing manner was secreted in the bundle of Rs5000notes placed around the rim. The collector has held that it is evident that Section 8 of the Foreign Exchange Regulation Act-1947 has been violated which stipulates that

Ltu surpasses revenue target this year by rs20 billion

Pak currency above Rs3000 can neither be taken out of the country nor brought into Pakistan. Meanwhile, The Customs Station Torkham has confiscated foreign origin four gold slabs weighed 2.224 kilogram valued Rs12.25million including duty and taxes. Mohammad Noman son of Zareef Khan was carrying fresh apples in a

shopper while coming from Afghanistan through Customs Station Torkham. During an examination of the baggage at the checking in scanning hall, NLC Terminal, the customs staff recovered the said slabs valued Rs9.239million involving duty and taxes of Rs3.32million from the shopper containing fresh apples. On de-

mand he could not produce any documentary evidence regarding the legal import or lawful possession of the recovered gold slabs. After weighing of the recovered gold by the customs station Torkham in the presence of Mohammad Noman as well as witnesses, the same was seized in terms of section 168 of the Customs Act-1969.

ANF seizes drugs worth rs87m, arrests 8 smugglers in 7 raids

RAWALPINDI

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he Anti Narcotics Force (ANF) has seized drugs worth Rs87 million and also arrested eight smugglers in seven countrywide operations. According to ANF Headquarters spokesperson, the ANF also impounded a vehicle being used for transportation of narcotics from possession of smugglers. He said that the recovered drugs com-

prised 64.33kg hashish, 2.125kg ice and 460 gram heroin. The operations also resulted in arrest of eight persons including a woman involved in smuggling of narcotics and seizure of one vehicle, he said. He said ANF Rawalpindi arrested a drug carrier namely Raees Khan, resident of Khyber Agency and recovered 3.5kg hashish from his personal possession. He was arrested from Chungi No 26 Bus Stop, GT Road, Islamabad. ANF Quetta on pursuance of an

intelligence report intercepted a Toyota Corolla car near Ziarat Cross, main Khanozai Road, Tehsil Khanozai, District Pishin and seized 60kg hashish concealed in its secret cavities. Two drug carriers on board identiQied as Javed Ahmed and Yaqoob both residents of Pishin were also apprehended at the spot, he said. ANF Lahore Airport Team arrested two foreign bound passengers namely Muhammad Nazeer and Shoukia Shehzadi both residents of Lahore at Allama Iqbal International

Airport, while they were boarding for Jeddah by Saudi Airline Flight No SV-735 and recovered 1.05kg Ice concealed in their suitcases. In another operation, ANF Lahore intercepted a Netherland intended parcel at Air Cargo Shed, Allama Iqbal International Airport and seized 460 gram heroin tactfully concealed in shin pads and gloves. ANF Peshawar Airport Team arrested a foreign bound passenger namely Liaqat Ali resident of Charsadda at Peshawar Airport and recovered 1.075kg ice

concealed in his suitcase. He was boarding for Jeddah by Shaheen International Airline Flight No NL-721. In another operation, ANF Peshawar Airport Team apprehended an accused namely Karamat Khan, resident of Karak at Peshawar Airport and recovered 440 gram hashish concealed in his suitcase. He was to take off for Abu Dhabi by Shaheen International Airline Flight No NL721. Yet in another operation, ANF Peshawar in collaboration with ASF arrested a Dubai.

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Customs Court sends two suspects to jail in tax evasion case KARACHI: Acting judge of the Customs Taxation and Anti-Smuggling Court Arshad Noor Khan has sent two suspects, Mansoor Ahmed and Muhammad Junaid, to Central Jail Karachi on judicial remand. They were arrested on the charges of tax fraud as well as duty and tax evasion of Rs 6.32 million. During the hearing, investigation oﬃcer produced the suspects before the court and submitted that during the investigation, it was revealed that both the accused were involved in fraudulent clearance of fabric imported by other importer by cross shifting of the cargo after examination by the customs department.

Shc issues notice to ApM terminal operator in St recovery case

Wednesday July 5, 2017

Karachi

court sends suspect on physical remand in gold smuggling case

KARACHI

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he Sindh High Court has ordered issuance of notice to APM Terminal Operator for July 25 in an appeal filed by Sindh Revenue Board (SRB) assailing order of Salex Tax Tribunal. The order was issued by an appellate bench comprising Justice Irfan Saadat Khan and Justice Arshad Hussain Khan. According to the appellant they served the respondent terminal operator with a show cause notice and recovery notice on ground that since 2012 they have not paying Sales Tax on supplies. APM challenged the show cause and recovery notice before the Sales Tax Tribunal which ruled in favour of the APM holding that both supply and service do not fall within the ambit of the SRB.

gDp growth hits highest 5.3pc in a decade KARACHI

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he growth in real GDP remained at its upward trajectory, and increased to a decade-high of 5.3 percent in 2016/2017, said State Bank of Pakistan’s third quarterly report on the State of Pakistan’s Economy released. Economic indicators like private sector credit and investment also posted encouraging picture, whereas inflation remained below the target. The report also highlighted the revival in the agriculture sector during FY17, which was supported by favorable policy measures, including subsidy on fertilizer, reduction in sales tax on tractors, and increased access to finance. Better agriculture had, in turn, positive spillover for trade and manufacturing sectors, argued by the Report. Further, PSDP and CPEC-related activities also continued to boost construction related industries.

KARACHI

M B rANA

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ustoms Taxation and AntiSmuggling Court judge Syed Faiz Rasool Rashdi has sent a suspect, Muhammad Saleem, to the customs department on physical remand until July 6, 2017. He was booked for attempting to smuggle gold slabs weighing 413.320 grams. During the hearing, the investigation ofQicer produced the suspect in the court and submitted that ofQicials of the customs preventive intercepted him at the arrival lounge of Jinnah International Airport Karachi on June, 2017 and recovered gold slabs weighing 413.320 from him. The tentative value of the slabs is Rs 1.7 million. He also informed the court that during the search, the accused was asked to produced legal documents of the goods. However, he did not produce any legal and lawful documents, therefore, he was arrested and the gold was seized. He requested the court that prosecution needs further investigations, therefore, the court may send the suspect on physical remand. After hearing the arguments, the court sent him to the customs department and directed the investigation ofQicer to produce him on the next date of hearing along with progress report. According to the prosecution, case was registered under section 2 (s) and 16 of Customs Act, 1969 read

with SRO-666/2006 punishable under clauses (8) of section. Meanwhile, The Acting Judge of the Customs Taxation and AntiSmuggling Court Syed Arshad Noor Khan has granted interim pre-arrest bail to suspects namely Muhammad Shahid, Abdul Samad and Sher Ameen who were allegedly involved in mis-declaration and imported restricted kerosene oil under the garb of white spirit. During the hearing, counsel for the

During the hearing, the investigation officer produced the suspect in the court and submitted that officials of the customs preventive intercepted him at the arrival lounge of Jinnah International Airport on June, 2017 and recovered gold slabs weighing 413.320 from him

Dg Valuation issues Vr No 1186/2017

KARACHI

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he Directorate General of Customs Valuation has revised the customs value of Sorbitol Solution 70 percent non-crystalline grade notiQied vide Valuation Ruling No 1186/2017 under Section 25A of the Customs Act, 1969. According to the details, the stakeholders, including importers, local manufacturers, Pakistan

Chemical and Dyes Merchant Association (PCDMA) and representatives from clearance Collectorates, participated and presented their view point. M/s Habib ADM Ltd, local manufacturers, stated that Sorbitol Solution 70 percent non-crystalline grade is being dumped into the country to inQlict serious blow to the local Industry. Therefore, the National Tariff Commission has imposed anti-dumping duty on imports from several countries i.e. India, Indonesia and France.

They further stated that export prices of subject item to other countries, from afore mentioned manufacturing countries, are much higher than the prices on which the same item being imported into Pakistan. They contended that price offered for Pakistan is limited to geographical area of Pakistan and not the price offered for international markets. They, supported their submissions with (CIS Scan prices for March 2017. They requested to link the customs value with ICIS Scan prices.

suspects informed the court that their clients were innocent and were falsely been booked in this case. He said that they are ready to face trail, however, they have apprehension of arrest from the customs department, therefore, the court may granted them bails. After the arguments, the court granted bail against the surety of Rs 500,000 each and issued notices to the investigation ofQicer and special prosecutor for customs department.

urea sales rise 108% year-on-year rea oﬀ-take increased 108% year-on-year in May 2017 to a total of 521,000 tons, according to sales data of the National Fertiliser Development Centre (NFDC). On the other hand, di-ammonium phosphate (DAP) sales showed a decline of 35% year-on-year to 69,000 tons, mainly due to reduced demand across the industry.

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Govt asked to lower duties to discourage smuggling Wednesday July 5, 2017

Lahore

LAHORE: Pakistan FMCG Importers Association has urged Federal Finance Minister Ishaq Dar and the Federal Board of Revenue (FBR) to bring down customs duties on different consumer goods as higher rates are contributing to an increased influx of smuggled goods. Talking to Customs Today, Patron-in-Chief of the Association Naseem Chawla and President Anjum Nisar urged the government to curb smuggling by lowering duty tariff on items which are heavily smuggled. They said that smuggling had emerged as a menace to economic growth and not only was local industry suffering at its hands but also the law abiding importers while it causes a loss of billions to the national exchequer.

customs court extends judicial remand of alleged powder milk smuggler LAHORE

M IMrAN MehAr

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he Special Federal Court of Customs Taxation and AntiSmuggling has approved an extension of judicial remand of the accused arrested by the customs authorities from Lahore on charges of smuggling powder milk by showing it as plastic raw material. Accused Zahid Rasheed was booked by the customs intelligence. The customs intelligence, on a tipoff, intercepted a truck in suburbs of Lahore city and found it loaded with international branded powder milk. The customs, on the basis of intelligence, raided a warehouse and found 9349 bags of the milk of different brands. The weight of the recovered powder was 232,000 kilo-

customs court adjourns hearing of rs80m tax evasion he Special Federal Court of Customs Taxation and Anti-Smuggling will hear a case of an accused Manzoor Ahmad arrested on the charge of tax evasion. Sources told Customs Today that accused Manzoor Ahmad owns a textile factory on Raiwind Road. He was allegedly involved in the tax evasion by submitting fake returns and other statements to the FBR. On the intelligence information, Inland Revenue Department registered a case against him under Pakistan Sales Tax Act and started investigation. After collecting proofs against the accused, Inland Revenue arrested and produced him before the court of ChaudaryAmeer Muhammad Khan for physical remand. On request, customs court approved his physical remand for three days and handed him over to investigation team for further investigation. –CB Report

grams. The value of the milk is Rs70million. The milk is made of America, Turkey, Holland, Korea and India. The milk was smuggled from these countries by different routes, especially from Afghanistan. After a physical remand, he was sent to jail and now he is on judicial trial. The customs authorities has registered a case against him under the Pakistan Customs Act-1969. Meanwhile, The Special Federal Court of Customs Taxation and Antismuggling has remanded three accused to jail on the extension of judicial remand of 14 days. Three accused Afzal Khan, Raheem Shah and Gulab Khan were apprehended by the customs intelligence. The customs intelligence has also recovered a huge quantity of smuggled electronic goods from their possession. The accused are involved in smuggling of said goods from Afghanistan into Lahore through different routes.

ASo impounds NDp inverter, air conditioners, washing machines LAHORE

M hAYAt

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ollectorate of Customs Preventive Anti-Smuggling Organization (ASO) staff raided the premises of Ghulab Khan, Rahim Shah and Muhammad Afzal, and recovered huge quantity of smuggled/non duty paid split inverter air conditioners and washing machines of LG brand valuing Rs9 million after registering a criminal case against the accused persons. OfQicial sources told Customs Today that ASO staff also recovered foreign origin curtain cloth having weight 6555 kilograms from Pak Afreed Goods Transport Adda, Dosako Chowk, Sheikhupura valuing Rs4 million besides two narcotics interdiction cases were also reported by Customs Preventive staff posted at GPO wherein sizeable

Dc Adjudication Farid declares confiscation of toyota corolla legal

eputy Collector Adjudication Muhammad Hassan Farid has ordered out right confiscation of an illegally imported Toyota Corola car bearing registration number: LY-9132. Sources told Customs Today that the vehicle was seized by Customs AntiSmuggling Organization on information of illegally imported vehicle. The ASO in persuasion of the information intercepted a vehicle Toyota Corolla car bearing registration number LY-9132 near

Muslim Town Mor Fereozpur Road Lahore. The person available in the vehicle introduced himself as driver and sated his name and address as Muhammad Safique and resident of Shakarghah, district Narowal. On inquiry, the above person provided registration book of the vehicle and copies of some auction documents. As the chassis number of the vehicle was appearing suspicious, therefore, the above vehicle was detained under Customs Act. –CB Report

quantity of cocaine and marijuana was recovered from the incoming parcels. Therefore, FIRs have been lodged accordingly and the investigation and prosecutions directorate is is probing the matter to bring the

actual facts to light and put the culprits behind the bars, sources said. It is necessary to mention here that Collector Preventive ZulQiqar Ali Chaudhary directed to adopt zero tolerance policy against smugglers.

customs I&I to auction 20 NDp luxury cars irectorate of Customs Investigation and Intelligence is auctioning 20 non-customs paid luxury cars on July 22, 2017, it was reported. Sources told Customs Today, the cars were seized by the car cell of the directorate and would be auctioned in the presence of deputy director of custom I&I Ali Zeb Khan and others. The vehicles include Mercedes Benz car, DGA 2003, Mercedes Benz LE 190 ICT 1997, Mercedes Benz, BoX 094 2004, Toyota Premio JK / 834 / ISD, 2004, Toyota Progress car DGA 27 1999, Honda Accord AG

2003 AGQ 064, Toyota Premio car ALK 932 KHI, BMW car, LEH 13 2317, Toyota Premio car, RU 222, 2002, BMW car, BEC 702 Sindh 2003, Toyota Crown car, BDT 798 2004, Honda Accord AQH 282, 2002 and BMW car 7451 LMZ 86. In addition to that nine Mark X cars of various models would also be put on auction. The car have been impounded from various places in and outsides the city of Lahore. The auction will be held at the Customs Intelligence & Investigation OfQice at the Allama Iqbal Town, the ofQicial sources said. –CB Report

Fto adjourns case filed by M/s unique cycle Industry

LAHORE

SAJID NAwAZ

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he Federal Tax Ombudsman (FTO) has adjourned the hearing of a case Qiled by proprietor of M/s Unique Cycle Industry against the chief commissioner, Regional Tax OfQice RTO-II Lahore until the next hearing.

FTO Consultant Tariq Yousaf heard the case 295/LHR/ST (84)/691/2014 FTO-LHR: 0000691/14 of proprietor M/s Unique Cycle Industry in which the counsel for the appellant argued that RTO-II had failed to release the refund of the last three years. He said that the RTO collected excessive tax from proprietor M/s Unique Cycle Industry during the

last three years. He approached the officer concerned many time for issuance of the refunds but the RTO Sialkot officials did not pay the refunds after the passage of reasonable time. Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO). The counsel further said that the delay in issuance of refund claims put burden on the taxpayers, adding

that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. After hearing the arguments from both sides, FTO Consultant Tariq Yousaf adjourned the case of proprietor Unique Cycle Industry until the next date for further hearing and directed the parties to appear on the said date to present arguments in the case.

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Wednesday, July 5, 2017

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MULTAN IMrAN ALI www.customsbulletin.com

he Customs Collectorate has collected revenue of Rs.4004.970 million during the month of June in the Qiscal year 2016-17. According to the details, the Customs Collectorate has surpassed customs duty (CD) collection by collecting Rs.1484.691 million against the assigned target of Rs.1355.210 million during the month of June of Qiscal year 2016-17. Multan Customs has posted 9 per cent increase in the customs duty revenue collection due to sincere efforts of the Collectorate during the month of June. The Customs Collectorate has collected Rs1313.430 million under the head of customs duty in the month of June corresponding fiscal year 201516. Multan Customs has collected sales tax amounting to Rs2472.378 million against the assigned target of Rs.6676 million during the month of June in economic year 2016-17. Sales tax collection of Customs Collectorate Multan has been reduced due to decline in the clearance of High Speed Diesel (HSD) from Multan Collectorate in the last few months. One of the main factor is that High Speed Diesel (HSD) prices in the international market was also dropped to certain extent which causes decrease in the sales tax collection of Multan Customs. The Customs Collectorate Multan

has collected federal excise duty (FED) of Rs19.509 million against Rs.11 million during June 2016-17. Multan Customs was able to collect Rs.9.745 million during the matching period of the economic year 201516. The Collectorate of Multan Customs has achieved the assigned the revenue collection target of federal excise duty (FED) for the duration of June. Multan Customs has also collected Rs.2.259 million additional sales taxes during the month of June in the economic year 2016-17. Meanwhile, The Customs Collectorate Multan has made collection of sales taxes of Rs1930.442 million in the Qirst twenty two days of June against the set monthly target of Rs.6676 million. Multan Customs is facing huge short fall in the revenue collection of sales tax due to multiple factors

including decrease in the import clearances at the Multan Dry Port and decrease in the tax ratio of sales taxes on High Speed Diesel (HSD). The collection of sales tax is also reducing day by day due to drop in the international prices of HSD products. Multan Customs has collected Rs.12.002 million under the head of federal excise duty (FED) in the Qirst 22 days of the month of June against the given revenue task of Rs11 million for the whole month of June. The Customs Collectorate Multan has collected Rs5.229 million of Withholding Taxes (WHT) against the assigned task of Rs103 million for the month of June in the Qirst 22 days of June of the ongoing Qinancial year 2016-17. The Customs Collectorate Multan has accelerated the revenue collection in the last month of economic year to achieve collection task assigned by Federal Board of Revenue. Sources told Customs Today that Multan Customs is chasing the challenging revenue collection task and Collectorate is conQident to achieve their assigned revenue collection task for the month of June along with current Qiscal year d llecte 2016-17 aso c s a sh signment. custom g to

n ntin Multa amou x a t st the s sale again n o i l l lion mi 76 mil 2.378 6 7 6 4 . s 2 s r r n get of June i ed tar n g i s s nth of a o m e th 16-17 during ear 20 y c i m econo

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eDItorIAL

Favourable outlook of economy

he International Monetary Fund has termed Pakistan’s economic outlook favourable thanks to stepped-up Chinese investment in infrastructure projects, estimated growth of 5.3 percent in gross domestic product in 2016-17, improvement in energy supply and introduction of structural reforms. However, economists believe the lending agency has allegedly dented its credibility by quoting wrong figures about the foreign currency reserves of the country. They allege that the fund has overstated the reserves by $3 billion during the outgoing fiscal year and a huge disparity between real and projected growth has marred its own credibility.According to the IMF report, Pakistan’s external financing requirements will rise up to $17 billion during the next fiscal year, but the fund has failed to show any negative effects of loans on the official forex reserves.The State Bank of Pakistan has admitted that the foreign exchange reserves have come down to $15.3 billion and it will be difficult for the government to prop them up to $18.5 billion. Reports suggest the foreign currency reserves are $5.5 billion less than they are projected by the IMF in its 12th review of the Pakistan’s economy.It clearly shows the government as well as the fund are hiding the actual figures of the external accounts. The government has maintained the foreign exchange reserves by taking expensive loans from everywhere and it will cost heavily to the national economy at the end.During the three-year $6.2 billion extending facility programme,the lending agency projected real picture of the economic performance, including imports, exports, external loans and current account deficit. However, a huge disparity in figures exposed many risks faced by the country. The fund had initially projected the current account deficit at 1.5 percent or $4.5 billion but the revised deficit projection is raised to $9 billion, putting pressure on the foreign currency reserves. Now the federal budget has been announced and only one week of the current fiscal year is left, many targets have not been achieved. As the country will need nearly $17 billion financial assistance for the next fiscal year, the current account deficit could reach 3.2 percent of the GDP or $10.6 billion.

construction of Diamer-Bhasha dam T

LAHORE

Dr AFtAB AFZAL

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hough the country is still far away from decentralized digital currency module, the business organizations are increasingly opting for digital payments and online preparation of documents. A digital currency system allows direct transactions between users without any intermediary or any bank and has growing popularity in the business circles in the world. The country’s finance ministry and the central bank will have to prepare themselves for the new technology as the paper and plastic currencies are

heading toward elimination and the future is not far off when only cryptocurrency and a digital payment system will prevail.The transactions are digitally verified without a central repository or single administrator. The software developers are also need encouragement for the development of new applications to enable people to electronically sign business documents, which will not only save time and energy but spur business activities. However, the policymakers are required to give legal cover to the digitally signed business deeds and related matters. Pakistan’s software industry is growing with massive increase in overseas client age.

The urgent need for the IT industry is the establishment of online banks such PayPal and Payoneer in the country to facilitate transfer of money to the software developers in Pakistan. According to economists, software engineering is the future of the world as apps are being made for every section of life and every sector of the economy. If mode of payments and transactions are digitalized, it will speed up business activities in the given field. The future of business and trade lies in development of digital economy as it is great possibility for the cryptocurrency to overtake traditional as well as plastic currency. It is

also possible that a new unified digital currency takes over all the money transactions of the world in a few decades. It is good omen that Pakistan has made remarkable progress in IT industry, but irony is that all the achievements are based on individual efforts and without support from any local or the world organization. Under the government sponsorship, the National Database and Registration Authority is a success story. The government’s introduction of the Electronic Transaction Ordinance in 2002 was a good effort to legalize the signing of documents electronically. The world is changing at a fast rate and we as a nation will have to keep pace with it.

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Exchange of financial data: FBR issues list of 88 countries ISLAMABAD: Federal Board of Revenue (FBR) has issued a list of at least 88 countries, according to which, Pakistan can automatically swap financial information of their citizens. The country will exchange financial information with at least 88 countries from the next fiscal year under an agreement with the Organisation for Economic Cooperation and Development (OECD) to curb tax evasion and avoidance. FBR issued the list of OECD member countries for the purpose of automatic exchange of information to prevent tax crimes. The countries include Switzerland, which is infamous for parking in its banks and other avenues illegal money of Pakistanis. The list, however, does not contain the territories, like United Arab Emirates and Panama, which are presently under discussions for potential tax evasion by Pakistanis. Yet, FBR said the list is provisional and will be updated when required.

court extends physical remand of principal appraiser involved in corruption LAHORE

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he National Accountability Bureau (NAB), Lahore, had arrested Principal Appraiser of Customs for allegedly having assets beyond known sources of income. According to a NAB spokesman, following the directions of its Lahore Director General Shahzad Saleem regarding eliminating corruption from government departments and society too, the NAB team arrested Principal Appraiser Customs named Iftikhar Cheema from Lahore. The spokesman said the accused was involved in making illegal assets beyond his known sources of income. As per details of assets known yet, 14 kanal, 9 marla land

near DHA Lahore, one kanal plot in Johar Town and 12 kanal 10 marla land near Johar Town, etc. Moreover, he said, the accused holds millions of rupees in his bank accounts. The NAB launched verification against the accused in 2016 against a complaint received through intelligence sources and a proper inquiry was launched on the directive of DG NAB in late 2016. After collecting evidences against him, NAB Lahore arrested the accused and presented him before the Accountability Court and acquired his physical remand that has extended again for eight more days. Meanwhile, Three accused Afzal Khan, Raheem Shah and Gulab Khan were apprehended by the customs intelligence. The customs intelligence has also recovered a huge quantity of smuggled electronic goods from their possession.

Wednesday July 5, 2017

National

IDp stays surplus with annual revenue target of rs92 million ISLAMABAD

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he Customs Islamabad Dry Port (IDP) surpassed its annual revenue target with Rs92.00million of Customs Duty (CD) during 11 months and 20 days (July 01 to June 20) of current Financial Year (FY) 2016-17. The IDP earned Rs3501million against the assigned target of Rs3405million for FY16-17 under the head of CD. According to Assistant Collector Amanat Ali Khan, performance of the IDP has been satisfactory during above said period. During 11 months and 20 days of June FY16-17, the IDP generated Rs748.05million more revenue than the same period of corresponding Qinancial year 2015-16. During corresponding FY2015-16, the IDP received Rs2753million during 11 months and 20 days. He said the IDP will achieve its revenue target of Customs Duty during June FY2016-17. The revised target of Customs Duty had been assigned double in amount against the previous target of June 16-17. The IDP surpassed the assigned revenue collec-

tion target during May 2016-17 with additional amount of Rs46.561 against the collection of same period of corresponding Financial Year 2015-16. The IDP received Rs381.439million during May 201617 whereas it did Rs328.00million during the same period of corresponding Financial Year 2015-16. During July to May FY2016-17, the IDP Qiled 2651 of dutiable Goods Declarations (GDs) whereas it processed

2920 containers during said period. The IDP got Rs3170.00million of Customs Duty (CD) during July to May 2016-17 against the assigned revenue of Rs2924million. During 11 months of current Financial Year 2016-17, the IDP surpassed the revenue target with an amount of Rs246.00million as and it collected Rs2382million during the same period of corresponding Financial Year 2015-16. The IDP processed 325

dutiable GDs during May FY16-17 whereas it cleared 376 dutiable containers during May. The IDP generated Rs381.439million during May 2016-17 while it did Rs328.00million during the same period of corresponding Financial Year 2015-16. The IDP surpassed the revenue collection with Rs46.561million against the collection of the same period of corresponding Financial Year 2015-16.

Special customs tribunal orders issuance of new Vr KARACHI

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pecial Customs Appellate Tribunal has directed the Customs Valuation Department to issue a new valuation ruling following the procedure envisaged in Section 35 of the Customs Act 1969. The Special Customs Appellate Tribunal, comprising Nadeem Qureshi, Member Judicial and Nazim Saleem, Member Technical, was hearing 18 appeals Qiled by Imran Hardware Store and other importers who challenged an order in revision passed by the Director General Customs Valuation in a case of import of knob & handle door locks, door handle thumb action lock, night latch/rim lock of Chinese origin. The customs appellate authority maintained that value determined

under new VR 1075 of 2017 superseding VR 697 of 2014 while dismissing appeals by the importers. The appellants/importer challenged the more than 250 per cent increase in custom values by the Director Valuation. The appellate tribunal deciding the appeals held that the determination of the value under section 25-A of the Customs Act 1969 is not a simple thing. It is therefore appropriate that the ruling should contain sufQicient details to show that section 25-A has been properly applied and also make it necessary that the Valuation Ruling should be a “ speaking order” as per mandatory requirement of section 24 A of the General Clauses Act 1987. The appellate tribunal also declared the VR 1075 of 2017 as void being issued without lawful authority. The tribunal also declare the Order in Revision passed by Custom

authorities as null and void. Meanwhile, The Special Customs Appellate Tribunal has reserved judgment in 20 identical appeals Qiled by Imran Hardware and others who imported glassware and porcelain from China. According to the appellants they imported the consignments from China and Qiled the Goods Declaration under Valuation Ruling 788/2016 but the Custom Authorities assessed and determined the custom duty and other taxes under Valuation Ruling 108/2017. The appellants also Qiled revision appeals before the appellate authorities of Pakistan Custom who maintained the valuation under VR 108.2017 while passing Order in Revision which was questioned in appeal before the tribunal comprising Nadeem Qureshi, Member Judicial and Nazim Saleem, Member Tech-

nical. Ghulamullah Shaikg advocate of Franklin Law Associates appearing for the appellants relied upon in international prices and also pointed out that under previous VR Glass Ware was imported at a rate of 89 cents while Porcelain at 75 cents but suddenly by issuing new VR, custom duty and taxes were enhanced to $1,20 and 1 respectively which was unjustiQied. The Tribunal after hearing the counsel for the parties in detail reserved order in all the 20 appeals. The same tribunal while hearing another set of appeals Qiled by Mian Trading Company and 15 others who imported Knob & Handle Doors/Main Entrance Door Handle Locks (non-electric) reserved the order. The appellants challenged the Order in Revision passed by Director General Valuation against higher value about 250 per cent from the previous one.

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Appraising Oﬃcer Waqas Ahmed resigns Wednesday July 5, 2017

National customs Inspector Arif given minor penalty

ISLAMABAD: Waqas Ahmed Virk Jat, a BS-16 officer of Pakistan Customs, has resigned from the government service. The competent authority has accepted the resignation from government service tendered by the officer, last posted as Appraising Officer at Model Customs Collectorate, AppraisementWest, Karachi with immediate effect.

Minor penalty imposed on customs Inspector Muhammad Arif

ISLAMABAD

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ISLAMABAD

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hulam Hussain Khoso, a Pakistan Customs Service officer of BS-16, has been punished and given minor penalty for inefficiency. Disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against the officer, presently posted as Inspector at Model Customs Collectorate, Quetta vide charge sheet dated 21.12.2015. Amanullah Tareen, the then Deputy Director (BS18), Directorate of Transit Trade, Quetta was appointed as inquiry officer to conduct inquiry on account of various acts of omission and commission committed by the accused officer constituting “inefficiency”, and “misconduct”. According to the inquiry report, the charges of “inefficiency” and “misconduct” were established against the accused officer. A show-cause notice dated 04.01.2017 was issued to the accused officer and he was also called for personal hearing by the authorized officer on 14.03.2017.

FBr remembers late customs inspector Syed M Ali he Federal Boar d of Revenue has announced deep regret over the sad demise of Syed Muhammad Ali Rizvi, a BS-16 officer of Customs Department. Syed Muhammad Ali Rizvi was born on April 1, 1970 and joined government service on September 18, 1995. At the time of his death, the officer was posted as Inspector at Model Customs Collectorate, Multan. The FBR appreciated the dedicated services rendered by the deceased officer. While expressing grief at his death, the Board also conveyed its commiseration to the members of the bereaved family, praying, “May his soul rest in eternal peace and may Allah give patience and fortitude to the family members to bear this irreparable loss.” –CB Report

uhammad Arif Dotani, a Pakistan Customs Service officer of BS-16, has been given minor penalty for inefficiency. Disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against the officer, presently posted as Inspector at Model Customs Collectorate, Quetta vide charge sheet dated 21.12.2015. Amanullah Tareen, the then Deputy Director (BS-18), Directorate of Transit Trade, Quetta was appointed as inquiry officer to conduct inquiry on account of various acts of omission and commission committed by the accused officer

constituting “inefficiency”, and “misconduct”. According to the inquiry report, the charges of “inefficiency” and “misconduct” were established

against the accused officer. A showcause notice dated 04.01.2017 was issued to the accused officer and he was also called for personal hearing by the authorized officer

on 14.03.2017. After considering the charges framed in the charge sheet, inquiry report, personal hearing and other available record, the accused officer was found guilty of “inefficiency” under rule 3(a) of the Government Servants (Efficiency and Discipline) Rules, 1973. The Authorized Officer has therefore, imposed minor penalty of “withholding of four increments without cumulative effect” upon Muhammad Arif Dotani falling on 1st December, 2017 under rule 4(1)(a)(ii) of the Govt. Servants (Efficiency & Discipline) Rules, 1973. His period of suspension from 30.04.2015 till his provisionally re-instatement into service i.e. 13.01.2016 shall be treated as leave of kind due as admissible under the rules.

hyderabad customs earns rs 1,673.9m customs duty & taxes during 29 days of June 2017 T

HYDERABAD

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he Model Customs Collectorate (MCC) Hyderabad has generated Rs 1,673.9 million customs duty and taxes during 29 days of June 2017. The department collected Rs 548.240 million customs duty, Rs 1,095.639 million sales tax, Rs 2 million federal excise duty (Special FED) and Rs 28.076 million Withholding Tax during the abovementioned period. The MCC Hyderabad received Rs 1673.955 million in 29 days of June 2017 and assigned the target with the collection of Rs 539.31 million customs duty (CD), Rs 2.071 million sales tax, Rs 4.2 million federal excise duty and Rs 37 million withholding tax during June so the MCC has fetched a total of Rs 2651.51 million to the national exchanger. The major

sources of tax revenue remained Hyderabad Dry Port State Warehouse, Sukkur-Larkana Division, Huffaz

Seamless Pipe Industries, Crescent Steel, Omni Polymer Industries, Rema Cooking Oil and Pakistan State

Oil. The Anti-Smuggling Organization (ASO) also seized non-duty-paid goods worth millions of rupees.

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NTC says anti-dumping duty on Chinese tiles expires KARACHI: The National Tariff Commission (NTC) has notified that the provisional antidumping duty imposed on import of wall and floor tiles from China has expired. In a letter to Federal Board of Revenue (FBR), NTC noted imposition of provisional antidumping duty on dumped import of wall and floor tiles from China for a period of 04 months effective The 04 months imposition period of provisional anti-dumping duty expired on 18-06-2017. NTC noted, Federal Board of Revenue should not collect anti-dumping duty on import of wall and floor tiles from China from 18.06-2017. When the Commission imposes a definitive anti-dumping duty and the same will be intimated to FBR subsequently.

ASo impounds non duty paid toyota during checking FAISALABAD

NAeeM SheIkh

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he Customs Collectorate Anti Smuggling Organization (ASO) has seized a smuggled Toyota Corolla car worth Rs9,00,000 involving custom duty and taxes Rs4,63,280. Sources told Customs Today, that in pursuance of information, the ASO team intercepted a Toyota Corolla car bearing registration number: IDH-9727 model 1997 in Silver colour near GTS overhead railway bridge Faisalabad. The ASO team asked the owner of the vehicle namely Hamad Sarwar Sahi son of Ghulam Nabi resident of Chak No 225 RB Malkhanwala to produce legal documents regarding possession of the vehicle, but the owner has failed to produce any legal documents. After his

failure ASO team impounded the vehicle under section 2(s), read with SRO 566(1),2005 section 16, 18, 157, 168, and 178 of the Customs Act 1969 and Section 3 of Sales Tax Act, 1990, Section 148 of Income Tax Ordinance 2001 and forwarded the case to Customs Adjudication for further proceedings. The ASO team comprising Inspector Khalid Ashraf Noor, Tanveerul Haq, and sepoys Muhammad Ashraf, Muhammad Naeem, Muhammad Yaseen, Liaqat Ali others take part in the seizure operation. Meanwhile, The Anti-Smuggling Organization (ASO) Mianwali has seized smuggled old and used screw compressors (1600-Kg) worth Rs1.3million involving customs duty and taxes of Rs225000. The ASO also impounded a Mazda Mini truck valued Rs500000 during a raid. Sources told Customs Today that Customs Collectorate Collector Muhammad Sadiq received a tip-oﬀ regarding the smuggling attempts.

National

customs I&I impounds consignment with wrong pct heading, saves rs 2m

custom preventive foils bids to smuggle huge quantity of drugs at karachi KARACHI

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akistan Customs Preventive has seized a huge quantity of drugs worth million of rupees. According to the source, a joint team of the Customs Preventive and Anti Narcotics Force (ANF) seized a huge quantity of heroin and cocaine worth million of rupees as well as have arrested two suspects. The team arrested two foreign bound passengers identified as Waseem Ahmed, a resident of Sheikarpura and Dur Muhammad, a resident of Kashmore, at Jinnah International Airport. The team recovered 200 gram heroin and 3.64 gram methamphetamine from them who were leaving for Jeddah by Saudi Airline Flight No SV-705, informed the sources. In another team in the collaboration with the Airport Security Force (ASF) arrested a passenger namely Sheikh Muhammad Akhtar at the departure lounge of the Jinnah International Airport, the sources added. The sources informed that the officer searched the luggage and recovered 334 gram heroin concealed in the trolley bag.

KARACHI

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he Customs Intelligence and Investigation (I&I) has seized a consignment of auto spare parts scrap which was being import using wrong PCT Heading. Reportedly, Customs I&I received a tip-off about import of spare parts scrap under wrong PCT Heading by M/s A&S Company with the help of their clearing agent M/s Rana Enterprises. The accused company showed less import value under PCT code 7602.0090 instead of PCT code 7602.0010 and paid 4 percent customs duty whereas the actual customs duty imposed was 30-32 percent. The wrong PCT code usage caused Rs 2 million to the national exchequer. The customs authorities impounded the said consignment and registered a case against the accused company. Meanwhile, Customs Intelligence and Investigation (I&I) Enforcement has busted huge quantity of Kerosene oil being imported on the name of white spirit. According to the details, three importers namely SMD Sons Pvt Ltd, M A Corporation Lahore and Power

Wednesday July 5, 2017

Industries Karachi were indulged in smuggling of Kerosene oil in garb of white spirit for last two years. On the tip of Directorate General of Intelligence and Investigation (I&I) Islamabad, the Director I&I Customs Enforcement Karachi Samina Tasleem Zehra started investigation against three importers involved in smuggling of huge quantity of Kerosene oil in garb of white spirit.

The Director I&I Customs Enforcement Karachi Samina Tasleem Zehra constituted a team headed by Additional Director Syed Ali Zaman Gardezi as well as the Deputy Director for conducting the proper investigation of the case. The matter was thoroughly studied and discreetly followed and information was found correct on which consignments worth Rs 360 million were detained.

‘weak exports, tax revenue risk to economic growth’

KARACHI

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he central bank said the country’s macroeconomic indicators continue to improve, but a slowdown in exports and a drop in tax revenue will potentially undercut the pillar of recent economic strength. It warned the policymakers that exports and revenue are among risks that could affect the economic stabilisation of the country. “Decline in exports and below target tax collection, are impacting two key macroeconomic balances – current account and Qiscal,” said the State Bank of Pakistan (SBP) in its

third quarterly report on the State of Pakistan’s Economy for the Qiscal year 2016/17. “In order to maintain the growth momentum and hard-earned economic stabilisation, these balances need to be kept at sustainable levels.” The central bank said the country’s exports have been afQlicted by a number of structural, institutional and entrepreneurial gaps, which have constrained the country’s competitiveness for the last many years. “Pakistani exports could … beneQit from this evolving dynamic, if the exporters are able to diversify their products at competitive prices,” the bank said.

The Annual Plan FY18 projects exports to grow by 6.8 percent, with impetus coming from removal of supply-side bottlenecks and a better performance by the industrial sector. The import bill is likely to rise by 7.6 percent due to surge in demand for machinery and equipment. “However, the impact of such imports on the external balance would remain muted due to availability of Qinancing from International Qinancial institutions and other bilateral sources,” the central bank said. It sees lower tax collection is another challenge faced by the economy. “Some tax measures, like dif-

ferential tax structure for filers and non-filers can potentially increase the tax base; however, recent fiscal incentives for investment, exports and domestic production have led to deceleration in tax collection,” it added. The FY18 budget has set a fiscal deficit target of 4.1 percent of GDP for the year. This will be supported by 14 percent growth (Rs 4 trillion) in the Federal Board of Revenue tax revenues. The bank said along with continuing some of the relief measures, the budget has also introduced a number of measures to achieve this enhanced revenue target.

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World Customs Wednesday July 5, 2017

Bank of France says market and debt risks high PARIS: Financial market and private sector debt risks have increased and should remain high through the rest of the year, the Bank of France said on Friday in a biannual report on risks to the French ﬁnancial system. The French central bank said there was an “unprecedented de-correlation” between markets and political risk which could lead to a surge in risk premiums in the case of an unforeseen shock. It also called for caution in the coming months on corporate and household debt, which has been growing rapidly in France amid low interest rates.

Malaysians caught smuggling over 100kg of gold bars into

Sri Lanka Navy arrests 8 Indian fishermen COLOMBO

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PETALING JAAY

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ore than 100kg of gold bars allegedly brought from Malaysia were conQiscated by customs ofQicials at the Kansai International Airport in Osaka in April, a Japanese news portal reports. According to Japan Today, ofQicials were said to have found the gold bars worth over 500 million yen (RM19.1mil) hidden under the clothing of 10 Malaysians who had arrived at the airport from the country. The Malaysians reportedly walked through the required customs declaration procedures without declaring the gold bars. The case is being investigated as a suspected violation of the customs and consumption tax laws. According to the news portal, gold smuggling has been on the rise since Japan’s consumption tax was raised from 5%

Vietnam’s economy grows 5.73% in h1 ietnam’s gross domestic product (GDP) grew by an estimated 5.73 percent in the first half of this year, Director of the General Statistics Oﬃce (GSO) told a press conference in Hanoi on June 29. The first-quarter growth hit 5.15 percent while the second quarter’s was 6.17 percent thanks to the government’s eﬀorts to improve business climate. Specifically, the agro-forestry-fisheries sector expanded 2.65 percent in the six-month period. Industry and construction grew 5.81 percent while services went up by a five year record 6.85 percent. Ha Quang Tuyen, head of the GSO’s National Account Department, said 17 out of 21 industries recorded higher growth rate in Q2 on a quarterly basis, notably manufacturing and engineering (10.5 percent), contributing 1.79 percentage point to the economic growth. –CB Report

to 8% in April 2014. It said many gold smuggling cases reported since then involved passengers arriving on Qlights from airports in Hong Kong and South Korea. It added that investigative sources say smugglers may be exploring new routes including from Malaysia. Meanwhile, A delivery man was charged in the Magistrate’s Court

here today with trafficking in about a million Eramin 5 pills at the Penang International Airport. However, no plea was recorded after the charge was read out to Shafiee Chin, 49, before Registrar Mohd Alif Abdul Aziz. Shafiee was charged with trafficking in the drug at the MAS Cargo Complex of the airport in Bayan.

extortion on highways remains big challenge for businessmen

number of drivers and local businessmen complained about extortion on highways, saying that they totally pay 150,000 for each truck on their way to Kabul and other parts of the country when they import goods from abroad. The drivers said all the legal payments including the customs taxes cannot surpass 10,000 AFs. But according to them, they are ‘forced by local officials

and powerful figures’ to pay up to 150,000 AFs for each truck on highways. “It costs us between 100,000 AFs to 150,000 AFs to pay for each truck to customs offices, high tonnage scale and municipality and to many individuals. We sell our goods for 180,000 AFs or 200,000 AFs. We benefit only 50,000 AFs but we spend it on repairing our vehicles,” said Nasir Ahmad, a truck driver. –CB Report

ri Lanka Navy on Friday has arrested 8 Qishermen from India’s Tamil Nadu state for allegedly crossing the International Maritime Boundary Line (IMBL) and Qishing in Sri Lankan waters. Sri Lanka Navy Fast Attack Craft attached to the Northern Naval Command engaging in routine patrol in the Northern territorial waters arrested the Indian Qishermen in a steel hull trawler 17 nm southeast of Point Pedro in the evening of June 23. The arrested Qishermen, Qishing trawler and their Qishing gear have been brought to the naval base, Kankasanthurai. They will be handed over to the Jaffna Assistant Director of Fisheries for onward legal action. Sri Lanka Navy Thursday arrested 17 Qishermen from Tamil Nadu for poaching in Sri Lankan wa-

ters in the northern territorial waters off Nagar Kovil. Meanwhile, A 32-year-old Sri Lanka Air force (SLAF) Airman attached to the Bandaranaike International (BIA) Airport was arrested with two kilograms of gold jewelry worth more than Rs.10million by the Airport customs officers this morning, Customs media spokesman Dharmasena Kahandawa said. He said the customs found 2.65 kilograms of gold jewelry wrapped to his legs and he was arrested while he was on the way to the airport departure lounge from the arrival lounge. The suspect was a resident of Dehiattakandiya. “The suspect was trying to hand over the jewelry to a passenger at the Departure lounge,” he said. The customs investigations revealed the suspect had been in the same practice on several previous occasions, he said. Mr. Kahandawa said that he may have wrapped the jewelry to his legs inside an airport lavatory.

Singapore sees 1.4% inflation

ingapore’s Consumer Price Index (CPI) rose 1.4 percent in May, compared to the 0.4 percent of CPI-All Items inQlation in April, said the Ministry of Trade and Industry and the Monetary Authority of Singapore (MAS) in a joint release. The inQlation growth is attributed to the rise in the cost of housing maintenance and repairs on a year-ago basis due to base effects associated with the disbursement of the S&CC rebates. This caused the cost of accommodation to decline by a smaller 1.5 percent compared with the 6.7 percent fall in April. According to the two authorities, Singapore saw the cost of electricity and

gas rise by a faster 19.1 percent in May, compared to the 18.7 percent increase in the preceding month, due to a larger increase in gas tariffs on the back of the recovery in global oil prices over the past several months. Food inQlation went up to 1.5 percent in May from 1.3 percent in April, driven by a larger increase in the prices of non-cooked food items. Meanwhile, the prices of prepared meals rose at a similar pace in both months. Private road transport inQlation declined to 6.1 percent in May from 7 percent in April, on account of more moderate increases in car and petrol prices. –CB Report

uS plans to sell taiwan about $1.42 billion in arms

T TAIPEI

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he United States plans to sell Taiwan $1.42 billion in arms, the Qirst such sale under the administration of Donald Trump and a move sure to anger China, whose help the president has been seeking to rein in North Korea.

US State Department spokeswoman Heather Nauert told reporters the administration had told Congress of the seven proposed sales on Thursday. “It’s now valued about $1.42 billion,” she said. The State Department said the package included technical support for early warning radar, high speed anti-radiation missiles, torpedoes and missile components.

Nauert said the sales showed US “support for Taiwan’s ability to maintain a sufQicient self-defense capability,” but there was no change to the United States’ long-standing “one China” policy, which recognizes Beijing and not Taipei. The United States is the sole arms supplier to Taiwan, which China deems its own and has never renounced the use of force to bring the self-ruled island under its

control. Beijing has given Taiwan President Tsai Ing-wen the cold shoulder since she took power last year because she leads an independence-leaning ruling party and refuses to recognize the “one China” policy. On Friday, Tsai’s ofQice said that her government will continue “to seek constructive dialogue with Beijing, and promote positive developments in cross-strait relations.”

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AD Ports lines up Fujairah development DUBAI: As part of the agreement, the entities have announced the establishment of Fujairah Terminals, an operational arm wholly owned by Abu Dhabi Ports. Through the establishment of Fujairah Terminals, the agreement will grant Abu Dhabi Ports the exclusivity to enhance existing infrastructure in addition to managing all container, general cargo, ro-ro and cruise Ships in the port. The agreement also includes the deepening of berths to 16.5 m to allow for larger vessels, building a 300,000 sq m yard of storage space as well as an additional 1 km quay to accommodate the expected growth in the number of ships arriving at the port.

Four ships take berth at port Qasim hipping activity remained active at the Port where four ships C.V MSC Sao Paolo, M.V Bao An Ling, M.T Sea Ambition and M.T Argent Daisy carrying Containers, Coal, Chemicals and Palm oil were allotted berths at Qasim International Container Terminal, Multi-Purpose Terminal, Engro Vopak Terminal and Liquid Cargo Terminal respectively. Meanwhile two more ships C.V CMA Indus, MSC Messina carrying container also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was observed at the Port at sixty nine percent on Wednesday where a total of eleven ships namely, MSC Sao Paulo, Northern Monument, MSC Algeciras, Bao An Ling Nord Leader, Calipso, Maran Gas Asclepius, Cerulean, Sea Ambition, Argent Daisy and M.T Pacific Panama were occupied PQA berths to load/oﬄoad Containers, Coal, Soya bean Seeds,

Chemicals, General cargo, LNG, Palm oil and furnace oil respectively during last 24 hours. A record cargo handing was achieved on Wednesday where a cargo volume of 173,498 tonnes, comprising 125,500 tonnes import cargo and 47,998 tonns export cargo inclusive of containerized cargo carried in 3,382 Containers TEUs)887 imports TUEs & 2,495 Tues exports) was handled at the Port during last 24 hours. A total of six ships Northern Monument, MSC Algeciras, Maran Gas Ascleplus, Cerulean, Argent Daisy are expected to sail on same day (Thursday). A total nine ships C.V CMA CGM Indus, C.V MSC Messina, M.C Sea Con-5, M.V Fidias, M.V Sakizaya Diaono, M.V Neutrino, M.T YM Miranda, M.T Bneider and M.T Tamson Gas. –CB Report

Ports & Shipping

Metro ports to stevedore at port of Indiana-Burns harbor WASHINGTON

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new company is going to handle bulk cargo at the Port of Indiana-Burns Harbor. Long Beach, California-based Metro Ports was hired as the new bulk terminal operator at the deepwater port on Lake Michigan, replacing Lakes and River Transfer after its contract expires at the end of June. Metro Ports will load and unload bulk cargoes, including shipments of steelmaking, agricultural, manufacturing, energy and construction products. Montreal-based Federal Marine Terminals, which has invested millions of dollars in the port over the years, will remain on as the port’s general cargo stevedore for freight such as steel and heavy equipment. Metro Ports is the country’s oldest stevedoring company, and it has a long established presence on the west, east and gulf coasts. “We’re honored to be selected as the bulk

terminal operator at the Port of Indiana,” Metro Ports President Michael Ferguson said. “We see tremendous potential here to leverage the port’s connections to ocean ships, Great Lakes vessels, river barges and multiple rail carriers, as well as the region’s powerful industrial base located within sight of downtown Chicago. Indiana was the obvious choice for us to expand our business into the Midwest and establish a

Great Lakes presence. We could not have asked for a better business partner than the Ports of Indiana and are already working together with their team to develop new shipments that could signiQicantly grow business in this region.” Metro Ports is expected to invest in bulk terminal upgrade that increase throughput capacity at the port, which handled 2.6 million tons of cargo like steel and beer tanks last year.

Wednesday July 5, 2017

New ports board to reduce uS$400m demurrage cost ell over US$400 million is lost to ships annually through demurrages at the country’s ports. This has been described by the vice president, Dr. Mahamudu Bawumia as a punitive and inefficiency cost to the country. There are other inefficiency and nuisance costs, including those used in facilitating clearance through the Regulatory agencies and GRA Customs itself. These are said to contribute greatly to the high cost of goods and services in the country, which renders the ports uncompetitive and leads to high dissatisfaction among port clients. Therefore a new board that has been reconstituted, by the Ministry of Transport for the Ghana Ports and Harbours Authority, has been tasked to ensure that this deadline is met and the ports are made profitable and viable. Chairman of the reconstituted board, Peter Mac Manu, speaking to Goldstreet Business said the new GPHA board is poised to make the ports more attractive. –CB Report

port of Vancouver rejects recommendations WASHINGTON

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he largest Canadian port has strongly rejected the conclusions of a just-released think tank report recommending that Canada’s four leading ports should be privatized so that several billion dollars in additional funding could be allocated to such other national infrastructure projects as public transit and new highways. “From our perspective, the governance model that we currently have in place works very well to allow us to deliver effectively on our mandate, which is to enable Canada’s trade and to do so considering the concerns of the community and protecting the environment,” said a spokesperson for the Vancouver Fraser Port Authority who said its viewpoint has been transmitted to

the federal government. “Nearly 90 per cent of our earnings beyond operating costs are reinvested in port infrastructure, and collaboration with local, provincial and federal governments continues to result in gateway development that is envied worldwide,” the spokesperson added. Continuing, the Vancouver port spokesperson said: “A private investor would require a return on that investment that would have to come from current infrastructure funding and/or higher rents and fees for port tenants and users. This would have a serious impact on the long-term competitiveness of the gateway.” According to the C.D. Howe Institute, the ports of Vancouver, Montreal, Prince Rupert and Halifax represent a potential cash boon of up to C$3.4 billion to the federal government under a proposed restructuring of a governance model – similar to an “asset-

recycling” experiment in Australia – in place for 18 Canada Port Authorities (CPAs). These CPAs act as landlords, managing safety and navigation services, permits, and leases for different terminal operators. The report contends that “due to the competitive landscape facing ports, port users are unlikely to see signiQicant changes in pricing and customer experience if the federal government chooses to involve private capital.” The report’s author, Steven Robins, argues the federal government should, in fact, “restrict CPAs from investing risk capital and instead rely on private capital to Qinance expansion, and harvest some of the value of its equity stake in other priorities.” The report goes as far, at one point, to urge the federal government “to cast a critical eye” on the planned C$2 billion Terminal 2 container cargo expansion at Roberts Bank in the Port of Vancouver aimed at meeting future

demand in Asian trade. A controversy has been swirling in Canadian port circles since last November when Morgan Stanley was asked by the federal government to provide Qinancial advice on its port holdings which have been operating since 1998 as Qinancially self-sufQicient entities at arm’s length from the government. An “if it ain’t-broke-don’t Qix it” reaction has been pretty widespread in these circles. “Of course, privatization can result in more efQicient operations,” observed the Vancouver port spokesperson who also stressed: “However, Canada Port Authorities are already corporately structured and operate in a quasicommercial manner, mostly independent of government. Moreover, terminal operators and tenants at the Port of Vancouver are already private sector entities. Therefore, those beneQits of privatization would not likely be realized here.”

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FIA arrests 11 Pakistanis deported from Greece RAWALPINDI: The Federal Investigation Agency’s (FIA) immigration staﬀ has taken custody of eleven illegal Pakistani immigrants deported by Greek authorities arrived at the Benazir Bhutto International Airport (BBIA). The deportees were taken into custody by the Federal Investigation Agency’s (FIA) immigration staﬀ and moved to the Anti-Human Smuggling Cell for further legal proceedings.

Wednesday July 5, 2017

Business

‘pak railways revenue increases to rs20b’ ISLAMABAD

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akistan Railways has experienced surge of more than Rs. 20 billion in revenue and its deQicit slashed by Rs. 10 billion during the last four years along with improved services for the people. It was revealed in a tweet message by Minister for Railways Khawaja Saad RaQique which states that Revenue of Pakistan Railways has hiked by Rs. 20 billion and deQicit has been lessened by Rs. 10 billion during the last four years. During the last four years, the minister said that Pakistan Railways achieved exceeding its target set for

gDp growth hits highest in a decade KARACHI

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each year and it would set precedent by achieving more than benchmark of Rs. 53 billion earmarked for the current Qiscal year. Meanwhile, the sources within

Bhalwal industrial estate a big attraction for foreign investors

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Ministry of Railways told APP that Pakistan Railways has prepared working paper about the targets set for next year (2017-18) along with comprehensive details of generat-

ing revenue through diverse measures to achieve it. The sources further said that Rs. 53 billion had been the revenue target set for Qiscalyear 2017-18 which would be 33 percent higher as compared to the preceding Qiscal year. The revenue target in the current budget is 94 percent higher as compared to the target set in 2013.” Total revenue generation would be over Rs. 53 billion in next year which would be 33 percent higher against than that of preceding year (2016-17),” the sources maintained. “Pakistan Railways spearheaded by Khawaja Saad RaQique will set the record of achieving highest ever revenue and its performance and services will further improve in the wake of effective reforms introduced in this sector,” the sources maintained.

LAHORE

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he Bhalwal Industrial Estate has become a big attraction for foreign investors due to its strategic location on Lahore-Islamabad Motorway, said Chairman Punjab Industrial Estates Development & Management Company Rizwan Khalid Butt. He was talking to a group of foreign investors at his ofQice the other day. He told the delegation that Chinese and overseas Pakistanis’ were

rating Bhalwal Industrial Estate high for investment because of its short distance from Motorway, which is only Qive kilometres off the Salim Interchange. “This site is situated in the middle of Lahore-Islamabad Motorway; therefore, local and foreign investors are showing extraordinary interest,” he added. In addition, he added, two different investors from the US and UAE, respectively, are planning a plastic factory and a pharmaceutical unit there in near future. He also informed the potential investors that the Board of Investment (BoI) Pakistan was all

set to declare the Bhalwal Industrial Estate a Special Economic Zone. PIEDMC is in process of inviting bids for a grid station at the estate. He hoped that these two steps would attract more investment in future.So far, one hundred industrial plots have been sold out at the Bhalwal Industrial Estate, he added. The selling spree would boost up further when the repairing of a road linking the site with Salim interchange would be completed. He said 90 per cent of development work has been completed and the remaining 10 per cent would be Qinished in two months.

textile sector holds govt responsible for export woes LAHORE

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akistan Hosiery Manufacturers and Exporters Association (PHMA) Chairman Adil Butt has expressed concern over the decline in textile exports, which have dropped 1.98% in the first 11 months of the current fiscal year. Along with the fall in textile exports, Pakistan’s trade deficit has swelled 42.12% to about $30 billion compared to $21.1 billion in the same period of previous fiscal year. Butt held the government responsible for the constant decline in textile exports because of delay in release of tax refunds of exporters and asked it to immediately release all the pending sales tax refund and Customs rebate claims as well as withholding tax claims. “The drop in textile exports comes during a turbulent period for textile manufacturers as they await the promised government incentives for the export sector including disbursement of an export promotion package worth Rs180 billion and smooth receipt of sales tax refunds.” The year-on-year growth in exports of most of the textile products was negative including towels, cotton clothing and bed wear, which showed double-digit declines, he said while quoting the Pakistan Bureau of Statistics (PBS).

Imports reaches a historic peak: SBp KARACHI

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tate Bank of Pakistan (SBP) on said that the imports continued to surge and reached a historic peak of $38.5 billion in July-March 2016/2017. In its third quarterly review (July-March 2016/2017) on state of Pakistan’s economy, the SBP said that most of this increase was observed in third quarter of Qiscal

year 2016/2017, when imports of petroleum, machinery and chemical items all rose signiQicantly: in fact, machinery and petroleum imports contributed around 55 percent to the overall increase in imports during the period. Imports of petroleum products during Jul-Mar FY17 were entirely driven by higher quantum product imports, with crude oil shipments declining during the period on YoY basis. The rise in petroleum product

imports reQlected strong domestic demand by the transport and power sectors: sales of high speed diesel (HSD) and petrol increased by 12.9 percent and 17.4 percent YoY respectively. Meanwhile, furnace oil imports rose by 7.3 percent YoY during the period.33 Infrastructure development activities under CPEC boosted the demand for HSD, which is mainly used by heavy commercial vehicles. This was also reQlected by rising imports as well as sales of

heavy vehicles. On the other hand, the increase in furnace oil imports corresponded with a rise in power generation from the fuel during the period. Imports of all major non-oil industries rose signiQicantly during Jul-Mar FY17. This was entirely an outcome of higher quantums, as the unit values of most items (except palm oil) fell during the period. Machinery imports contributed more than 40 percent to the overall import growth during Jul-Mar FY17,

with power, electrical and construction-related equipment leading the charge. Meanwhile, an increase in textile machinery (mainly for spinning and weaving) was observed in Q3-FY17. This basically reQlects higher investment by the sector, as Qirms start taking beneQit of various policy support measures (like the export package announced in January 2017, the removal of sales tax on import of textile machinery, and record-low interest rates).

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Saudi Arabia’s economy shrinks by 0.5% RIYADH: Saudi Arabia’s economy shrank by 0.5% in the first quarter, illustrating the scale of the challenge facing the country’s new heir as he tries to overhaul an economy still reliant on a struggling oil industry. Gross domestic product was 643 billion riyals ($170 billion) compared with 646.4 billion riyals in the same quarter a year earlier, the General Authority for Statistics said in a report on its website on Friday, using preliminary data based on 2010 constant prices. The oil and gas sector shrank 2.4%, Bloomberg reported. The data show the difficulty facing Saudi Arabia as it implements its long term plan to wean the economy off oil. Led by the crown prince, Mohammad Bin Salman, who was named heir to the throne last week, the government is trying to balance that shift with austerity measures to balance the budget—but which have weighed on growth.

kccI leader for aggressive public drive on traﬃc rules ISLAMABAD

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Chambers

IccI urges pak envoys to play role in promoting tourism potential

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hairman Businessmen Group in Karachi Chamber of Commerce and Industry and former president KCCI Siraj Kassam Teli has called for an aggressive public awareness on traffic rules because for mostly traffic jams people themselves were responsible. “Around 60 percent of the traffic jams being suffered on the streets of Karachi, particularly after recent rains, are caused by the public themselves because of fearless violation of traffic rules,” he said in a statement. He urged for proper awareness and training about the basic traffic rules. Siraj Teli said that provincial and local governments could only be blamed for the remaining 40 percent which included failure to deal with encroachment, negligence to city’s dilapi-

dated sewerage network, timely unclog rainwater and other unavailability of traffic police officers and other municipal staff at important spots to deal with different situations emerging during and after the torrential rains. Meanwhile, Chairman Businessmen Group (BMG) & Former President Karachi Chamber of Commerce & Industry (KCCI) Siraj Kassam Teli has said that around 60 percent of the traffic jams being suffered on the streets of Karachi, particularly after recent rains, are caused by the public themselves because of fearless violation of traffic rules, absence of civic sense and totally senseless and amateurish driving which is mainly due to lack of awareness and proper training about the basic traffic rules. In a statement issued, Siraj Teli said that Provincial and Local governments can only be blamed for the remaining 40 percent.

Wednesday July 5, 2017

ISLAMABAD

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he Islamabad Chamber of Commerce and Industry has called upon the Pakistani diplomats to play role in promoting tourism potential of Pakistan in their host countries as Pakistan has immense potential to attract tourists from around the world to its unparalleled scenic sites and wonderful landscapes. Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that tourism creates plenty of jobs, alleviates poverty and contributes signiQicantly to the economic development of a country. He said that Pakistan has places in Northern Areas, Azad Kashmir, Lahore, Moenjodaro, Thatta and in many other areas that are ranked best in the world for tourism, but Pakistan is still unexplored for tourism due to which the country could not realize its full economic potential as yet. He said that tourism has emerged as a leading industry in the world with a global economic con-

tribution of US$ 7.6 trillion and global tourism revenue of US$ 1.26 trillion in 2016. He said tourism is contributing 10% of global GDP and 6% of the world’s total exports, but unfortunately no serious efforts have been made in Pakistan so far to exploit its huge potential for the economic development of the country. He said that law and order situation in tourist destinations of Pakistan has improved signiQicantly. He

urged that Pakistani diplomats in foreign countries should develop brochures and publicity material on tourist resorts of Pakistan for display in their missions and distribute them among key stakeholders in host countries for better marketing of Pakistan’s tourism potential. He stressed that government should give targets to Pakistani diplomats for promoting tourism in host countries and they should be made ac-

pakistan, Australia to enhance trade volume LAHORE

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resident of the Lahore Chamber of Commerce & Industry Abdul Basit and Pakistan High Commissioner in Australia Naela Chauhan in a meeting at Canberra agreed to further cement trade and economic relations between Pakistan and Australia. There was also a consensus to adopt new methodology to expedite the volume of two-way trade. Naela Chauhan said that Pakistani Consulate in Australia would share available business opportunities and would pave way for joint ventures between the private sectors of the two countries. She said that private sector would have to play an important role to enhance existing trade volume that does not match the potential of the two countries. She appreciated the

LCCI efforts to promote external trade of Pakistan and promised to extend beset cooperation to promote bilateral trade. The LCCI President Abdul Basit said that Pakistani Missions abroad should establish display centers for Pakistani products and cultural centers to promote Pakistani culture. These measures would help Pakistani products to get due share in the global market and would also attract foreigners towards Pakistan. Abdul Basit said that the size of global market for Halal products is estimated dollar 3 trillion. Pakistan is a natural base for Halal products. If we could acquire 10% share in its trade then we can easily enhance our exports by more than two times. He said that Australia and Pakistan have been steady trading partners. With regard to major exporting countries of Pakistan, Australia takes 26th position. Similarly, Australia comes at

16th rank among the top importing countries to Pakistan. “We are concerned about the comparatively low level of exports to Australia which results in unfavourable trade balance”, the LCCI President added and said that the current level of exports to Australia does not match the actual export potential of Pakistan. He said that our Embassies or High Commissions along with their subsidiary consulate ofQices have certain role to play to facilitate the business community of Pakistan who are very eager to develop trade relations with their counterparts in major economies. He said that any trade related information sharing with the chambers of commerce in Pakistan by the respective commercial sections of our embassies/high commissions can provide a lead to grab the possible business opportunities.

countable for their performance on this account. He said that tourism is the only industry that offers quickest return on investment as compared to other industries that take years in generating proQits and government should give priority focus to develop its tourism sector. He said that more than one billion international tourists are now traveling the world each year due to which the tourism has become a powerful force for poverty alleviation, jobs creation and sustainable as well as inclusive economic growth of a country. Khalid Iqbal Malik appreciated the initiative of Pakistan’s High Commission in Britain for promoting Pakistan’s branding through London’s iconic red double-decker buses under the theme of “Emerging Pakistan” as a part of celebrations for 70th Independence Anniversary of Pakistan. He stressed that other Pakistani foreign missions should take similar initiatives to promote tourism and culture of Pakistan in their host countries that would help in attracting more tourists and accelerating the pace of economic development of the country.

Iran’s exports to europe surge 500% ran’s exports to European Union have increased 500 per cent to reach 3.4 billion euros ($3.9billion) in the first four months of the year compared to the same period in 2016, a report said. According to the Statistical Office of the European Communities (Eurostat), the comparison also shows 127 per cent increase in commercial exchange between Iran and EU countries, reaching from 2.9 billion euros to 6.55 billion euros, reported Irna. Europe’s exports to Iran also show a 44 per cent increase, reaching 3.15 billion euros. It was 2.17 billion euros in the first four months of 2016. The changes are due to termination of oil sanctions and Europe’s restarting to buy oil from Iran, the report said. –CB Report

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Khushab FIU impounds non duty paid Mazda truck KHUSHAB: The Field Investigation Unit (FIU) of the Customs Intelligence and Investigation has seized a non duty paid Mazda truck bearing registration no: TKY- 355 (Quetta) model 1991 worth Rs25,00,000 involving customs duty and taxes Rs28,95,500. Sources told Customs Today, that Deputy Director Syed Ittrat Hussain received information about some non customs paid vehicles which were plying on roads. He constituted a team comprising Superintendent Muhammad Tahir, Intelligence Oﬃcer Mansoor Nasir driver Tajamul Haq (havaldar) Muhammad Sajjad and Khalil Ahmed (sepoys).

Wednesday, July 5, 2017

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First energy project under cpec completed: khurram Dastgir MULTAN cuStoMS BuLLetIN report www.customsbulletin.com

ederal Minister for Commerce, Engr. Khurram Dastgir Khan chaired a meeting as a guest of honor, between Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) & delegation of China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT). The commerce minister welcomed Wangyu, Vice Chairman CCCT and the rest of the Chinese delegation to Pakistan, said a press release on Monday. The minister appreciated the MoU on the Cooperation between Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) & China Chamber of Commerce for Import and Export of Textile and Apparel that included Promotion of Trade and Investment cooperation, exchange of ideas for developing the sector, organizing and participating in Fairs, exchange of information and support in business partner search, visits and events participation, training and working group arrangements and said that the government of Pakistan & Commerce

Ministry in particular will encourage and support the cooperation that has begun between the CCCT and PRGMEA. Speaking on the occasion, the commerce minister said

that while FTA with china is still Pakistan’s best and widest FTA but still we have noted that since 2006 china has done many more and wider FTAs with other regions and

countries in which, china has offered deeper concessions to other regions compare to Pakistan. “On govt. to govt. level we are trying to restore the margin of preference

that Pakistan originally had in 2006 and we urge through the, CCCT to also speak to the govt. of china that Pakistan-China FTA requires restoration of Preference”, added Khurram Dastgir Khan. Khurram Dastgir Khan cited this as one of the reasons due to which Trade imbalance between Pakistan and China has increased. Commerce Minister suggested two major steps as way forward. “As govt. we are trying our best to address the trade imbalance through reducing trade barriers and Pakistani govt. will provide full support in reducing any barriers to the formation of joint ventures between Pakistani and Chinese companies”, added the minister. Minister sought suggestions both from the CCCT and PRGMEA on how to discuss with Beijing on what form of dispute resolution mechanism should be adopted and said that we are already in touch with the embassy of china in Islamabad regarding Visas for business people. Minister also informed that on the 3rd of July the Qirst energy project under CPEC has been completed that is the 1320 MW electricity plant at Sahiwal. The Commerce Minister urged that it is important to work hard in this economic partnership and said that part of that economic partnership is also to have a knowledge partnership between two partners.

Dc Asma orders handover of confiscated auto-parts, Mazda truck FAISALABAD

NAeeM SheIkh

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ollectorate of Customs Adjudication Deputy Collector (D.C) Asma Hameed has released the seized auto-parts and Mazda truck after the issuance of Order-In-Original by the Customs Adjudication. Sources told Customs Today that Anti-Smuggling Organization (ASO) Faisalabad intercepted a

Mazda truck with registration No: FDR-4685 and recovered foreign origin (F/O) auto-parts including car doors (4-Unit), car bonnet (1unit), Bumper and Mudguards (4Units), auto-fan for car (13-units), wiper-motor-auto (3000-kg) hubs for car (54-units) and Steering (22-units). The auto-parts were being transported from Karachi to Faisalabad. The seizing agency conQiscated items and carrier vehicle under Section 168 of the Customs Act-1969 and forwarded the case to the Adjudication Department for further legal action. After hearing of the seizure

case, Deputy Collector Asma Hameed issued an ONO No: 101/2017 and gave directions for the release of said items after the assessment of the impounded items. Owner Zahid Hussain son of Muhammad Charagh has been imposed lump sum Qine of Rs25000 under section 181 of the Customs Act 1969 as penalties for the release of vehicle. Meanwhile, The Anti-Smuggling Organization (ASO) Faisalabad has seized a diesel generator 275-KVA worth Rs04million involving duty taxes of Rs1.3million besides impounding a vehicle valued

Rs01million being used for smuggling. Following a tip-off received through Collector Muhammad Sadiq, the ASO staff intercepted a vehicle Master Mazda truck with registration No: FSC-9648 near Abdullahpur Chowk Faisalabad. The vehicle was loaded with foreign origin diesel generator. The vehicle was coming from Lahore and going to Jhang city. Customs Deputy Collector Usman Tariq asked Muhammad Islam to produce the documents regarding the legal import or lawful possession of the goods. He provided Goods Declaration No: FCSI-

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).

HC-36 dated 02-09-2017 and KAPW-HC-252229 dated 23-62016. On perusal of the abovementioned GDs, it has been observed that all the GDs were related to alternators and engines along with other irrelevant items. However no diesel generator was imported through these GDs. Due to unavailability of legal documents of its import, the diesel generator was seized under Section 168, 16, 18, and 32 of the Customs Act-1969 read with SRO No: 499(1)2009. The customs registered a case against the accused persons.