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Karachi, Sat June 10, 2017
PESHAWAR
NADIR KHAN
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odel Customs Collectorate Peshawar collected extra revenue of Rs202.78million gross and Rs202.63million net All Duty and Taxes during May of Financial Year 2016-17 during the same period of
corresponding FY2015-16. The strike of the truckers at Karachi for 10 days of May FY1617 made a trouble for MCC Peshawar for collection of revenue during the month of May 16-17 whereas the collectorate surpassed the collection of all duty taxes against the same period of corresponding Financial Year 2015-16. During May 16-17,
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the collectorate of Peshawar generated Rs1686.51million gross revenue of All Duty Taxes while it did Rs1670.86million net revenue collection during the same period. The collectorate received Rs1483.73million gross revenue of all taxes whereas it did Rs1468.23million net revenue collection of all duty taxes during corresponding Financial Year 2015-16.
‘Hard work of FBR officers resulted in increase in the revenue collections’
Senate body approves proposal to set up DG of BTB at FBR
Pakistan rising, improving in every sector: Ahsan Iqbal
ASO impounds 17 NDP vehicles in anti-smuggling campaign
DG Valuation revises customs values of Iranian chocolates
ThespokesmanofFBR,whilereferringtothe newsreportsappearinginsomenational | See pAge 02 |
While reviewing the amendments moved by the FBR in the Income Tax Act, | See pAge 03 |
Ahsan has said that Pakistan under the dynamicleadershipofPMNawazwasrising | See pAge 04 |
ASO has impounded NDP vehicles worth millions of rupees during on-going drive | See pAge 14 |
DG of CustomsValuation has revised the customs values of chocolate of Iran origin | See pAge 16 |
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Special car cell impounds NDP vehicle valued Rs3m Saturday, June 10, 2017
National
ISLAMABAD: Special car cell directorate general of customs intelligence and investigation, federal board of revenue Islamabad, has impounded a non-duty-paid smuggled vehicle Toyota Mark X worth over Rs3million. Following a tip-off by an informer that a non-duty-paid smuggled car modelled 2005 with a fake registration plate No: BFP-126 Karachi is parked near Ittwaar Bazaar, Peshawar Moor sector G-9/1. Special car cell directorate of intelligence reached there and found the vehicle in the said area.
‘Hard work of fBR officers resulted in increase in the revenue collections’
cAt upheld oNo in m/s mughal Iron and Steel Industries case LAHORE
KARACHI
muBeeN HuSSAIN
SAJID NAwAZ
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he Customs Appellate Tribunal has dismissed the appeal filed by M/s Mughal Iron and Steel Industries Lahore against Assistant Collector of Customs Lahore. Justice (r) Malik Manzoor Hussain, Chairman Customs Appellate Tribunal finally remarked that the petitioner had failed to justify as to why the finished products were not shown to the team at the time of inspection. All was done by the team in the presence of finance officer of the appellant, who duly signed the report so, the substance of complainant is not valid. As as per the show cause notice the staff the MBCO section was conducted the raid and stock taking of the M/s Mughal Iron and Steel Industries. During the stock taking officer found 8728 metric ton of imported steel square billets, 108 metric tons of Ferro Silicon Managanese and 1566 metric tons of Girders and the appellant availing the facility of manufacturing bonds in terms of chapter XV of SRO 450(I)/2015. The stock taking report prepared report in the presence of finance officer of the unit and due to some violations department team charged Rs 807581 in duties and taxes.
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www.customsbulletin.com he spokesman of the Federal Board of Revenue (FBR), while referring to the news reports appearing in some national dailies on the June 2017, has clarified that his remarks during the hearing of the Senate Standing Committee on Finance have been given a wrong twist. He explained that he never stated that all Inland Revenue officers are compromised or dishonest. He was just explaining the difficulties faced by the FBR in monitoring and checking illegal sale of non-duty paid cigarettes. These difficulties arise from the location of the factories and quantum of the tax evasion in the sector and the consequent resources at the command of the persons dealing in illicit business. The reports have caused a state of unrest and indignation among the officers of the Inland Revenue Service among whom are included officers of unblemished integrity and professional skills. The official spokesperson emphasized that it is the commitment, integrity and hard work of the officers of the FBR that has resulted in 80 percent increase in the revenue collections in four years and increased the number of returns enforced by FBR from
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750,000 to above 1,200,000 in the same period. These achievements are in addition to unprecedented increase
in detection of cases of tax evasion and resulting recoveries. FBR is a premier institution of the country and the national media is re-
quested to display due care and diligence in reporting about its officers as such reports have a highly adverse impact.
Adjudication issues notice to accused involving in smuggling T
FAISALABAD
NAeem SHeIKH
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he Collector Customs Adjudication Mirza Mubashir Baig issued show cause notice to owner of smuggled foreign origin aluminum foil for packing of cigarattes Muhammad Mussadaq. Sources told to Customs Today, that Customs Field Investigation Unit (FIU Khushab has confiscated smuggled loaded container of for-
eign origin aluminum foil worth Rs 1,40,00,000. The FIU team during road checking impounded a trailer bearing registration no: C-2877 loaded with foreign origin aluminum foil for packing of cigarettes near Mianwali Toll Plaza M.M Road Mianwali. On query driver of the vehicle failed to produce any legal documents regarding transportation of the container. The Field Investigation Unit brought the container to Faisalabad Dry Port for proper examination.
Container was de sealed in presence of driver and owner. Its examination was carried out which led to recovery of smuggled aluminum foil packing. The representative produced different GDs in respect of recovers goods. The produced documents were scrutinized and were not found tallied in respect of goods. The ofTicials found discrepancies while examining the documents and recovered goods. Therefore, FIU Khushab forwarded the case to Customs Adjudication department.
Now Collector Customs Adjudication Mirza Mubashir Baig has issued show cause notice to Muhammad Mussadaq. The authority also directed if the owner fails to provide evidence the case will be decided on the basis of evidence available on demand. Meanhwile, Customs Adjudication Additional Collector Muhammad Saeed Asad has issued Order-in-Original (ONO) directing the Anti-Smuggling Organization Mianwali for unconditional re-
lease of impounded vehicle Toyota Land Cruiser V-8. The vehicle with registration No: AF-017 (Islamabad) was impounded by Mianwali ASO under Section 168(1) of the Customs Act1969 and the Import and Export Control Act-1950 punishable under Section 156(1)89(i) of the Customs Act. Later, accused Ali Aqdus son of Muhammad Farooq, a resident of Rawalpindi, provided the documents which were veriTied through electronic data for amnesty scheme.
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FBR proposes to disallow refund against WHT on sale of property KARACHI: The Federal Board of Revenue (FBR), through Finance Bill 2017, has proposed to disallow refund and adjustment against tax withheld on sale of properties in line with a budgetary announcement for the fiscal year of 2017-18. The government has proposed an amendment into Income Tax Ordinance 2001 to withdraw the refund and adjustment facilities against property transactions made during a tax year. Through Finance Act 2016, the government increased withholding tax rates on sale and purchase of immovable properties by 100 percent. Under the revised rate on property sale, a seller, who is a filer, is liable to pay one percent on the gross amount of the transaction, and a non-filer has to pay two percent.
Saturday June 10, 2017
National
Hyderabad warehouse deposits Rs6.7m into national exchequer
Senate body approves proposal to set up Dg of BtB at fBR
HYDERABAD
ASLAm ANJum QuReSHI www.customsbulletin.com
odel Customs Collectorate, Hyderabad State Warehouse, deposited Rs6.7million into the national exchequer which was collected through auction and following duty/taxes during May 2017. Customs collectorate has released the seized consignment of foreign origin cigarettes, cloths and non-duty-paid vehicles after receiving the taxableduty and taxes of abovementioned amount during the month of May 2017 through auction and following all duty and taxes including customs duty of Rs4.5million sale taxes, Rs962555 federal excise duty, Rs609708 and income taxes and duty of Rs606354 of smuggled items including cloths, cigarettes and non-duty-paid vehicles.
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SHc seeks remarks on petition filed by AL-malik traders KARACHI
m B RANA
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he Sindh High Court issued notices to the tax authorities and deputy attorney general on a constitutional petition filed by M/s AL-Malik Traders, Lahore seeking delay certificate on consignment of motorcycle parts held by customs authorities. While the hearing of petition, a two-member bench, headed by Justice Munib Akhtar also directed them to file their respective para wise comments on next date of hearing. Earlier, counsel for the petitioner stated that it is importer of motorcycle parts and imported a consignment of the same which held by customs department and despite dismissed of appeal filed by appellate tribunal, due to which causing enormous loss and mental torture/ agony to the petitioner due to delay in compliance of the order the tribunal.
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ISLAMABAD
m ARSHAD
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hile reviewing the amendments moved by the Federal Board of Revenue (FBR) in the Income Tax Act, the Senate Standing Committee on Finance and Revenue, has approved a proposal to establish a Directorate General of Broadening of Tax Base at the FBR as mentioned in the federal budget 2017-18. According to details, Senate Finance and Revenue committee met here with Senator Salim Mandviwala in the chair to review the budget proposals presented by the government for the upcoming Tiscal year. The committee also directed the FBR to look into the matter of removal of presumptive tax regime (PTR) and collection of taxes from the people of Khyber Pukhtunkhwa. Actually, some of the senators had raised the point that as per directions of the prime minister, the people of Khyber Pukhtunkhwa were exempted from a number of taxes as it was the terror hit province. However, he said that the FBR had removed the said exemptions and started collecting taxes from the people, which was a dire injustice to the people. Members proposed increasing tax rates on the bank transactions made by non filers of the tax returns; however, FBR informed the committee that already tax rate
had been increased by 50%; therefore, committee proposed an increase of 10% in the tax rate from non filers. FBR officials told committee that Rs 15 billion had collected from real estate sector last year, however, committee proposed the FBR to launch a mass campaign against Benami Properties and transactions for the public welfare. The committee proposed meritorious services’ reward for offi-
fBR officials told committee that Rs 15 billion had collected from real estate sector last year, however, committee proposed the fBR to launch a mass campaign against Benami properties and transactions for the public welfare
NAB arrests travel agents for cheating pilgrims
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PESHAWAR
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ational Accountability Bureau (NAB) Khyber Pakhtunkhwa arrested Ameer Ahmed Shah, Shahid Hussain, Humayun Khan and Naveed Akhtar (Traveling Agents) owner of Al-Mustafa Manpower Agency Shakoor Japan at Charsadda. They are allegedly involved in cheating more than 114 potential
pilgrims (Hujjaj) worth Rs. 37.585 million. The accused persons were running a fake travel agency in the name of Al-Mustafa Manpower Agency Shakoor Japan at Charsadda. They collected approximately Rs.3,30,000/-per pilgrim (Haji) and offered them private hajj facility. When the Hujjaj reached their office at Charsadda for collection of their visa and passport they found the accused persons disappeared from the scene and deprived dozens of peo-
ple from their hard earned money on one hand and pilgrimage on the other hand. Taking cognizance of cheating public at large, NAB Khyber Pakhtunkhwa actively pursued the investigation and arrested the culprits not only because it is a financial nature of fraud, regretfully they made innocent people their victims on pretext of religious ritual. The accused persons will be presented in the Accountability Court for obtaining their physical remand.
cials and staff of FBR for showing outstanding performance as well as punishment and fine for those whoever would frame a false and fake case against anyone. Committee also heard the viewpoint of steel/metal association and CNG association about their budgetary proposals regarding both the sectors as well as their comments and suggestions about the budget presented by the government for the coming fiscal year.
Six traders booked, fined for profiteering he city administration launched a comprehensive drive against price hike in the district. In the crackdown launched against profiteers mafia, Assistant Commissioner Waqas Marth raided various markets and booked and fined many shopkeepers for profiteering and selling low quality expired goods.
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Rs40.4 billion allocated for irrigation sector Saturday June 10, 2017
Business
KARACHI: The Sindh government has allocated an amount of Rs 40.4 billion for irrigation sector for the next financial year 2017-18. Delivering his speech on budget 2017-18 in Sindh Assembly, Chief Minister Syed Murad Ali Shah said that in the next year, the government would work on different important irrigation schemes. Rs 15 billion have been allocated for lining of main canals in Sindh. C.C Lining along Mehrabpur Branch RD 0 to 28+200, KhudaBux MinorRD 0 to 29, Langerji Minor at a cost of PKR 125 million.
‘pakistan rising, improving in every sector’ ISLAMABAD
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inister for Planning and Development Ahsan Iqbal has said that Pakistan under the dynamic leadership of Muhammad Nawaz Sharif was rising and improving in every sector. Talking to a private news channel, he said Pakistan Muslim League – Nawaz (PML-N), government after coming into power had to face number of challenges like terrorism, energy and economy crisis. He said present government under the leadership of prime minister Nawaz Sharif made efforts and resolved the problems of terrorism,
Rs71b proposed for local councils KARACHI
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energy and economy. The international organizations and many countries had acknowledged the progress and rising growth in Pakistan, the minister said.
federal govt allocates record Rs227b for Kp, fAtA in budget 2017-18: muqam
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he Sindh government has proposed allocation of Rs 71 billion, for local councils, including Rs 5 billion for development schemes to be undertaken by them, in budget for next fiscal year. Rs 60 billion were allocated for local councils in the current financial year. Presenting the budget 2017-18 in the Sindh Assembly, Chief Minister Syed Murad Ali Shah said that the Development Portfolio of Local Government Department for current financial year was Rs 20.73 billion for 422 development schemes.
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He said political stability was imperative to achieve progress. He said Prime Minister Muhammad Nawaz Sharif had put the country on path of speedy development. Ahsan Iqbal
said international games, tourism, movies, and other sectors were reviving fast. He said several energy projects had been launched to meet te demand of the country. Meanwhile, Pakistan is producing 3.5 million tons (mt) coal and importing four to five mt coal every year to meet needs of different sectors like steel, cement and power generation, official sources in the Ministry of Petroleum and Natural Resources said. “The coal is imported mainly from Afghanistan, Australia, Canada, Indonesia, South Africa and USA and consumed in steel and cement manufacturing and power generation units,” they told APP. Commenting on domestic production, they said so far nineteen coalfields have been discovered in the country.
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PESHAWAR
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dvisor to Prime Minister Engineer Amir Muqam has said the federal government has allocated record Rs 227 billion out of Rs 1000 billion PSDP (Public Sector Development Program) for the execution of various development and uplift projects in Khyber Pakthunkhwa and FATA. Addressing a press conference here, he said that health, IDPs and Prime Minister Youth Program were in addi-
tion to the PSDP allocation. The federal ADP includes construction of Malakand Tunnel, Shandoor Chitral road, Dir Chakdara Kalam road, Khawazakhel Basham expressway and construction of 23 bridges, while sufTicient allocations made for Northern Bypass, Dasoo Dam, Kiyalkhor, Munda, Kurram Tani Dam, TArbella T4, T-5 high transmission line, Warsak canal and Khan Khor hydel dams. Amir Muqam said that under the ADP 201718 Rs 613 million were allocated for Aviation KP, Rs 600 million for Commerce, Rs 112214.64 million for Communication, Rs 35 million for Defence,
Rs 700 million for Tinance, Rs 4791.904 million for Higher Education Commission, Rs 699.010 million for House and Works, Rs 117.115 million for Industry and Production, Rs 45 for Information and Broadcast, Rs 255 million for Inter Provincial Coordination, Rs 2163.851 million for internal affairs, Rs 181.833 million for National Food Security and Research, Rs 1926.286 million for National Health Service and Coordination, Rs 20 million for National History and Literacy Heritage, Rs 27.800 million for Ports and Shipping, Rs 414 million for Railways, Rs 10 million for Revenue and Rs 2 million.
Secp registered companies reach 80,000 mark ISLAMABAD
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he Securities and Exchange Commission of Pakistan (SEPC) has said that the total number of registered companies with the regulators has increased to 80,000. It said that during the first eleven months of current fiscal year (20162017) it registered 7,688 new companies. As compared to the corresponding period last year, it represents a growth of 35 percent. The massive increase in number of new companies is the direct result of various reforms measures introduced by the SECP, i.e. reduction of fee, introduction of swift incorporation process, assistance of incorporation by facilitation wings of CROs, elimination of purchase of third-party digital signatures and introduction of simple and hasslefree CNIC-based user ID and PIN system for incorporation and post incorporation activities. The SECP in May 2017 registered the highest number of 926 new companies so far, witnessing an increase of 44 percent as compared to same month of preceding year. Around 86 percent companies were registered as private limited companies, while around 11 percent companies were registered as singlemember companies.
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govt committed to facilitate foreign investors ISLAMABAD
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oard of Investment (BoI) said the government is committed to facilitate the foreign investors and provide them conducive environment according to the international standards. “We are focusing on tax reforms and would take further steps to ease payment of taxes
mechanism for the local and foreign investors,” spokesman of the BoI Shah Jahan Shah talking to APP said. Business environment could be improved further by giving consideration to 70 withholding provision of taxes, including clause (72-B), part IV second schedule of the Income Tax Ordinance, he said. He said an effective system of taxation helped in formalizing the economy, encour-
ages economic growth, shapes political cohesion between tiers of the government and results in increase in social sector service delivery. He stressed that there was dire need to reform the taxation regime particularly reducing the administrative burden on tax payers through merging and addressing the multiplicity of taxes, tax payments and tax collecting agencies.
Shah Jahan Shah said in Pakistan, tax payment was taking more time and also administrative burden as compared to high income Organization for Economic Cooperation and Development (OECD) countries. He said the business community had demanded inexpensive supply of energy – electricity and gas for generating more business activity and growth in the country.
He said foreign investors were keen to invest in various sectors of economy in the country. Shah Jahan said a total of seven Special Economic Zone (SEZs) cells had been approved for facilitating the investors through one window operation to provide them facility at one place. “SEZs investors would get the facility for plant and machinery import without customs duty in all four provinces of the country.
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ederal Board of Revenue Chairman Dr Mohammad Irshad has inaugurated a newly-furbished and modernised Contact Centre at FBR House to promptly respond to taxpayers’ queries and provide them relevant information in real time. Member Facilitation and Taxpayer Education (FATE) Dr Fazal Muhammad Abrejo, Chief FATE Tehmina Aamer and other senior ofTicers of FATE Wing were also present in the inaugural ceremony. BrieTing the chairman about the FBR Contact Centre, Member FATE Dr Fazal Muhammad Abrejo said the facility was based on the CRM (Customer Relationship Management) Software being used by top companies in the world to improve customer’s contact experience. In January 2017, the Federal Board of Revenue implemented the latest CRM that tracks, monitors, and archives issues reported by the taxpayers. Customer can now lodge complaints by sending emails to helpline@Tbr.gov.pk, calling the helpline UAN, and also by visiting the FBR’s website www.Tbr.gov.pk. CRM also helps in analyzing the kind of issues that are frequently reported and time taken to resolve an issue. Through the development of Iris Software Utility, frequently reported issues can now be resolved over the phone when a taxpayers calls on helpline. The Iris Utility is linked with NADRA (National Data Base and Registration Authority) database and automatically fetches all data to be updated in the Iris system. Relevant information that can be updated in the system using this facility includes date of birth, special person credit, senior citizen credit, name correction, CPR (Computerized Payment Receipt) issues and Income Tax return information.
ferent provisions of law. The third training introduced basic Sales Tax and FED return Tiling and related issues. Agents were given a walk-through in Sales Tax Portal and information that needed to entered in different Annexes. DrFazal further told the chairman that due to strict monitoring by FATE Wing, induction of new agents in the contact Centre and development of software utility for resolution of complaints, the number of dropped calls had gone down from 50% in Oct 2016 to less than 2% in April 2017. The average hold time-the time a person remains on the line before an agents answers the call on helpline UAN-had also gone down from 30 minutes in Oct 2016 to less than 30 second in April 2017. The Chairman was informed that previously there was no CRM (Customer Relationship Management) software in place at FBR through which a taxpayer could lodge a complaint either by calling or visiting the website. Consequently, it was also not possible to monitor the kind of issues that are frequently reported and time taken to resolve an issue. The installed CRM has the capacity to track, monitor, and archive issues reported by the taxpayers. During Jan-April 8854 cases have been resolved. An email backlog of te 1500 cases that was pending for months A f e t th a h was also taken care of. t d ol ther t r of On average, 180-200 emails are received r e u b f m n nu rma a i d a each day on helpline@Tbr.gov.pk. Out of s e h e t c e y duc th e emplo these, 75% of issues are resolved within d con e a r h t n t g re n t ce win c e 24 hours. Rest of the issues that require a ff t i n d e co gs of d t h re escalation to technical teams are ren n i a n i g a tr n ldin i o u solved within 3 working days. Taxpayn b e y t t pacit me re w r i ers can now also submit and track the o e c w n for ca i s l , a sy status of their applications by visiting manu ourte as and c m s FBR’s website, www.Tbr.gov.pk. Before issues i l d a e n t o a ssi submitting online complaints, they are and n d re l profe ling a re t u r n fi D n e also guided regarding the issue they select r f u t d e n r a tax tax from the dropdown menu. sales
The chairman was further told that the FATE Wing had conducted a number of trainings of Contact Centre employees for capacity building and three different manuals were written on Professionalism and Courtesy, Income Tax Return Filing and related issues as well as on Sales Tax and FED Return and related issues. The Tirst training was imparted in “Professionalism and Courtesy” to acquaint the agents in basic etiquette while talking to clients so that all agents use standard greetings, place clients on hold properly and use a standard closing. Based upon this training, one call of each agent is monitored by the respective supervisor and a score is given. The second training introduced basic tax laws related to return Tiling and wealth statement. Agents were given a walk-through in Iris and explained dif-
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eDItoRIAL
challenge of growing debts
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In its latest Global Economic Prospects report, the World Bank has highlighted the challenges faced by the economy of Pakistan amid growing debts and contingent liabilities. Though the bank projects Pakistan’s economic growth at 5.5 percent in the next fiscal year due to private sector investment, increase in energy supply and improvement in security situation, it also warns against rising circular debt in power sector and uneven debt repayments to international donor agencies. According to the report, Pakistan has recently retired $750 million Euro bond by obtaining $1 billion loan from China, showing that the country is heading toward debt trap. The external debts are growing as exports have been declining and remittances sent by Pakistani expatriates have started declining. The external debt servicing consumed $3.9 billion from July to March of the current fiscal year. The circular debt of power sector has increased to Rs412 billion and the Water and Power Ministry has sought over Rs100 billion to clear immediate liabilities. Experts believe in the absence of real growth in industrial and agriculture sectors, the coming years will have devastating impacts on the economy. The debt servicing consumed 24.2 percent of export receipts in nine months, which is the highest figure in one and half decades. The government is fully relying on the economic corridor projects and soft loans from Chinese investors which could add to the economic woes. Newspaper reports suggest that the government has issued fresh guarantees of Rs368 billion, equivalent to 1.2 percent of its Gross Domestic Product which could not exceed more than two percent of the GDP in any fiscal year under the Fiscal Responsibility and Debt Limitation Act of 2005. This ratio of guarantees, however, remained below one percent of the GDP except in 2009 and in 2010 when they crossed 2.2 and 1.2 per cent, respectively, during the tenure of the Pakistan People’s Party. The bank emphasized for the establishment of peace and security in Afghanistan to guarantee investment in Pakistan and rising tensions between India and Pakistan could also affect economic activities in the two countries. In the current situation, the government will have to concentrate on the agriculture and industrial sectors if it wants to achieve macroeconomic stability and will have to minimize its reliance on foreign loans.
Need to shift to renewable energy A
LAHORE
DR AftAB AfZAL
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s China, Russian, Germany and many other nations are enhancing their electricity generation capacities by shifting their focus from coal and nuclear on to the renewable energy, Pakistan is banking all its hopes on the coal power projects to cater to the needs of its industrial sector. The government has formally commissioned its second coal-fired power plant in Sahiwal with the largest installed capacity of generating 9 billion kWh of electricity per year. The plant will cater to the energy needs of nearly 10 million peo-
ple. Prime Minister Nawaz Sharif has already inaugurated the first unit of the coal-fired power plant with a capacity of 660 megawatts and connected it to the national grid. The plant is being built as part of the China-Pakistan Economic Corridor project to reduce Pakistan’s energy shortage. The energy projects under China’s Belt and Road Initiative will have positive impact on the industrial as well as the domestic consumers in the country. According to a Chinese official, 11 out of the 17 energy projects are jointly planned by the two countries and opening of the Sahiwal power plant will entail a host of energy projects under the corridor project. Most of
the energy projects will be completed by the end of 2019. Pakistan is a country where sun shines the whole year and harnessing the solar energy can cater to the needs of the entire country for centuries. At a time a host of countries are shifting to renewable energy resources such as solar and wind electricity generation, Germany is taking a lead and has share of 85 percent of renewable energy to its credit. Until April this year, Germany used to get at least 64 percent of electricity from renewable energy resources such as from solar and wind. Up to 2pm, the share of renewables is now 85 percent and over three quarters of demand is covered by
clean energy from 10am to 6pm. Germany has drastically lowered its dependence on coal energy and has reduced the capacity of its nuclear power by 40 percent. Germany has spent nearly $1.7 billion on clean and renewable energy initiatives and is planning to cut out nuclear power altogether in five years. The country is also planning to reduce greenhouse gas emissions such as carbon dioxide, methane and Nitrous Oxide by 80 percent. Pakistan can also follow the suit if it produces voltaic cells itself which converts solar power into electricity. But the local production of voltaic cell is reportedly prohibited and the reasons are unspecified.
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Iran food exports up 8 percent TEHRAN: Iran exported 1.178 million tons of food products worth $2.7 billion to more than 80 countries during the fiscal 2016-17, registering an 8% increase in value compared to the year before. “The figures on food exports are worthy of taking pride in. Since the food industry generates more added value in exports compared to agricultural products, this sector is of top importance in the economy,” the deputy head of Trade Promotion Organization of Iran, Mohammad Reza Modoudi, was quoted as saying by IRNA. The official noted that during the period, dairy product exports grew by 19% in value year-on-year, vegetable oil by 15.6%, essence and herbal drinks by 16.6%, and “miscellaneous food items” by 14.4%. In addition, the export of biscuits, sweets and chocolates grew 10%, sugar cube, sugar and its related products 4.1%, grain 3.7%, macaroni and baker’s yeast 2% and tomato 1%, IRIB News reported.
Yarn merchants reject 5% regulatory duty KARACHI
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he yarn merchants have rejected the government’s proposed 5 percent regulatory duty on import of synthetic filament yarn of polyester. Pakistan Yarn Merchants Association (SindhBalochistan Zone) Chairman Danish Hanif, in a statement, said that duty on polyester filament yarn, which is the basic raw material for fabric industry, was already higher therefore another 5 percent Regulatory Duty was unjustified. He said that on top of the above mentioned, there is an ongoing Anti-Dumping Duty investigation by National Tariff Commission (NTC) and the preliminary findings came out to be 6.23 percent (on average) on Chinese polyester filament/synthetic yarn (PFY). Therefore, the total impact on the import
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on PFY will be CD 12pc + RD 5pc (proposed) + 6.23pc Anti-Dumping Duty = 23.23pc, whereas the finished polyester filament fabric will have CD 16pc + RD 5pc = 21cp, so the tariff on imported polyester filament fabric will be cheaper than its basic raw material ie polyester filament yarn, he informed, adding that this will be a total disaster for SME sector of the looms in Pakistan and it will lead to huge unemployment. Danish pointed out that Pakistan started PFY manufacturing at the same time with Thailand, Indonesia Malaysia and India, whereas China started a decade later on similar plants. In due course, all these countries moved to direct spinning process and kept on increasing their capacities as well as modernising them by replacing texturising machines, providing a full range of products domestically as well as internationally at competitive price.
Saturday June 10, 2017
Chambers
AccI, pSX to work jointly for promoting Sme culture in Hazara A
PESHAWAR
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bbottabad Chamber of Commerce and Industry and Pakistan Stock Exchange Islamabad will work jointly to promote the SME’s culture in Hazara division and will work for the development of Small Scale Industries to join the manifold of Pakistan’s business community the area which earlier could not be tapped. In this connection a simple and impressive ceremony was held here at local hotel which was attended by the members of Abbottabad Chamber of Commerce and Industry, women entrepreneurs, representatives of different Investment companies, mutual funds, modarba companies, ofTicials of CDC and representatives of SME’s from Hazara Division. Signing ceremony was also arranged by regional ofTice of SMEDA Abbottabad where MoU was signed by the Asghar Abrar Naqvi, representatives of Pakistan Stock Exchange Islamabad region and Vice president of ACCI Sheikh Asif Hussain and added that Hazara division is the only and main
beneTiciary from CPEC and falls at main Karakorum High Way and falls on the only route which linking Pakistan with China. Speaking at the occasion Asghar Abrar Naqvi said that Pakistan Stock Exchange will launch public awareness campaign and will facilitate all those SME’s who cannot promote their businesses and fails
to arrange Tinances for them. He said that through PSX, they will be enlisted and will provide more and more opportunities to small scale investors in those areas which are away from the main trading markets as stock exchange can play Vitol role to arrange the Tinances for the business entrepreneurs.
fccI welcomes tax free punjab budget FAISALABAD
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resident Faisalabad Chamber of Commerce and Industry (FCCI), Engineer Muhammad Saeed Sheikh has welcomed the tax free Punjab budget 2017-18 and termed it pro-people. Congratulating, Chief Minister Muhammad Shahbaz Sharif and Provincial Tinance minister Ayesha Ghous Pasha, he said that a record funds of Rs 635 billion had been earmarked for development projects in the history of Punjab. He said that improved infrastructure with efTicient and energetic administrations would help different sectors to grow and progress. He also appreciated withdraw of registration fee for new business Tirms and hoped that it would certainly double the size of
businesses in the province. Engineer Muhammad Saeed Sheikh said that 10% increase in salaries and pensions was a good step. He said that it also indicates the government was fully aware of the Tinancial problem of government servants and pensioners and was making serious efforts to mitigate their genuine sufferings. He further said that allocation of 59% of total budget for local governments was indicative of the strong vision of the government to further strengthen the local bodies’ institutions enabling them to resolve the public problems promptly at the grass root level. Meanwhile, President Faisalabad Chamber of Commerce and Industry (FCCI) Engineer Muhammad Saeed Sheikh has welcomed the new Federal Budget 2017-18 by terming it most realistic in the prevailing eco-
nomic scenario. He along with the other leading businessmen of the city participated in a special function in FCCI auditorium in which the budget speech of Federal Finance Minister Mr. Ishaq Dar was screened live from the National Assembly. He said that the present budget is actually the continuity of the previous budgets of PML (N) Government and it is fact that all economic indicators have improved during these four years. He appreciated the Tiscal policies of Ishaq Dar who is trying its optimum best to materialize the economic vision of Prime Minister Nawaz Sharif and put Pakistan on road to progress and prosperity. He mentioned that 81 percent increase in revenue during last four years is the outcome of best policies and efTicient management of present Government.
He also told that PSX has also made public offering and is golden opportunity for the business community to avail the opportunity. SMEDA regional director told that after Ramazan Ul Mubarak, meetings and seminars will be arrange to educate the general public and SMEs for sustainable growth of entrepreneurs.
LccI welcomes punjab budget 2017-18 he Lahore Chamber of Commerce and Industry on Friday welcomed the Punjab budget 2017-18 and said it would promote investment and boost various sectors. LCCI President Abdul Basit said a number of steps had been announced in the budget which would attract foreign investment. He said the Punjab government had paid special focus on education, health and agriculture sectors in the budget 2017-18. He termed the Punjab budget positive, pro-industry and pro-poor and said Chief Minister Shehbaz Sharif deserved congratulations for presenting a balanced budget. He added the budget would lessen sufferings of the poor. –CB Report
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Principal Appraiser Wazir Zulfiqar retires ISLAMABAD: Shahadat Khan, a Pakistan Customs Service officer of BS-17, has retired from the government service on attaining the age of superannuation. The officer, last posted as Appraiser at Model Customs Collectroate of Appraisement-West, Karachi, stood retired from the government service on June 9, 2016.
Saturday June 10, 2017
Islamabad three IR oďŹƒcers granted performance allowance
Huma Sarwar made Dy commissioner-IR in faisalabad
ISLAMABAD
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hree Inland Revenue Service officers of BS-17, selected through the process of internal job posting (IJP), have been granted performance allowance. The officers, including Farah khan, Samayya Qayyum, Kiran Zahra and presently posted at Regional Tax Office, Rawalpindi, were granted performance allowance with effect from June 5, 2017. According to the notification, the grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. C. No. 6(96)S(BIC)/2013-14 dated 06-032015 and will be discontinued in case prescribed terms and conditions are not fulfilled within one month from the date of issuance of this notification. Meanwhile, Abdul Hamid, an ex-Cadre officer, has been promoted to BS-18 on regular basis with immediate effect.
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customs Superintendent Naseer to retire on July 31 uhammad Ishaq, a Pakistan Customs Service officer of BS-16, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Superintendent at Model Customs Collectorate, Peshawar, will stand retired from the government service on July 31, 2017. Meanwhile, Muhammad Iqbal, a Pakistan Customs Service officer of BS-16, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Preventive Officer at Model Customs Collectorate of Preventive, Karachi, will stand retired from the government service on September 19. –CB Report
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uma Sarwar, an Inland Revenue Service ofTicer of BS-18, has been transferred and posted as Deputy CommissionerIR. The ofTicer, presently posted as Deputy Commissioner-IR, RTO, Hyderabad, was posted as Deputy Commissioner-IR at RTO, Faisalabad with immediate effect & until further orders. According to the notiTication, if the ofTicer is drawing performance allowance (equivalent to 100 per cent of basic pay), she will continue to draw the same on her new place of posting. Huma has been asked to relinquish/assume charge, using online HRMS facility made available to FBR or by using IJP logins.
multan customs Intelligence seizes NDp tyres C
MULTAN
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ustoms Intelligence and Investigation Multan Range OfTice has seized huge quantity of foreign origin tyres of Rs8 million during raid. According to the details, Directorate of Customs Intelligence and Investigation Multan received credible information from their informer regarding smuggled tyres lying in the warehouse. Deputy Director Customs Intelligence and Investigation Multan Range Abdul Mueed Kanjoo formed special team for crackdown against warehouse to seize tyres. Customs Intelligence team comprises Superintendent Fareed ud din Masood, Inspector Umer, Inspector Nasir and other sepoys raided warehouse located in Mumtazabad area of mohallah Nasirabad and recovered smuggled tyres placed in the godown. The Customs intelligence teams recovered 172 commercial tryes of High TrafTic Vehicles (HTV) and
300 Light TrafTic Vehicles (LTV) during their action. Anti-smuggling operation of Customs Intelligence and Investigation was carried out after obtaining search warrants from magistrate and lo-
cal police have also assisted during raid to prevent any resistance from owner. It may be mentioned here that the Customs authorities have several markets under surveillance where the smuggled
goods are stored and sold. Customs teams have done this successful raid after getting concrete information about the warehouse from their informer and recovered millions of tyres.
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Customs to fix value of aluminium utensils KARACHI: With the aim to determine customs value of Aluminium Utensils, the Directorate General of Customs Valuation has scheduled meetings with the stakeholders, including importers, traders and industry representatives. According to the schedule on, a meeting would be held with the representatives of Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Karachi Chamber of Commerce & Industry (KCCI), importers and manufacturers of Aluminium Utensils at 10:30am.
fBR’s revenue target for fY17-18 increased by 14% to Rs4,013b KARACHI
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he government has increased revenue collection target for Federal Board of Revenue by 14 per cent to Rs4,013 billion for fiscal year 2017-18. The collection target for direct taxes has been increased by 15.67 percent to Rs1,594.91 billion in 2017-18 as against expected collection of Rs1,378.84 billion in the outgoing fiscal year. The collection target for income tax has been set at Rs1,577.557 billion in 2017-18 as compared with expected collection of Rs1,363.837 billion in 2016/2017, around 15.67 percent growth. The collection target in other component under direct tax i.e. Worker Welfare Fund (WWF) and Capital Value Tax (CVT) has been increased to
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Rs14.62 billion and Rs2.73 billion, respectively. The target for collection under indirect taxes has been increased by 12.88 percent to Rs2,418.09 billion for fiscal year 2017-18 as against expected collection of Rs2,142.16 in the outgoing fiscal year. The target for customs duty has been projected at Rs581.37 billion in the next fiscal year as against expected collection of Rs491.054 billion in the current fiscal year. The target for sales tax collection has been increased by 11.08 percent to Rs1,605.2 billion in the next fiscal year as compared with Rs1,444.96 billion in the outgoing fiscal year. The collection of Federal Excise Duty (FED) has been estimated at Rs231.52 billion in the fiscal year 2017-18 as against projected collection of Rs206.14 billion in the outgoing fiscal year.
Karachi
SHc rejects petition filed by cIR against m/S Ranipur cNg Station Ranipur T
KARACHI
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he Sindh High Court (SHC) dismissed an income tax reference petition Tiled by Commissioner Inland Revenue Zone-I, Regional Tax OfTice Sukkur against M/s Ranipur CNG Station Ranipur over recovery of disputed amount to Rs119,688,985. A two-member bench, headed by Justice Aqeel Ahmed Abbasi announced the judgment and observed that “we are of the opinion that impugned order passed by Appellate Tribunal Inland Revenue in the instant case, does not suffer from any error and illegality, which otherwise depicts correct legal position, accordingly, instant reference application having devoid of any merits is hereby dismissed”. Earlier, counsel for the applicant stated that assistant commissioner Inland Revenue Audit-IV, Khairpur issued various letters/notices including notice under section 122 (9) and show cause notice to the taxpayer in order to explain his position regarding investment made in CNG Station and on failure to justify his position, the same issued notice to the tax-
payer for recovery of Rs119,688,985. Being aggrieved, taxpayer Tiled an appeal before commissioner Inland Revenue Appeals which annulled impugned order, therefore, tax department Tiled an appeal before appellate tribunal against the said order, and however, Appellate Tribunal also dismissed its appeal. Citing M/s Ranipur CNG Station Ranipur as respondents, he pleaded the court may set aside impugned judgment and restore its order. Meanwhile, M/s
Saturday June 10, 2017
Liberty Power Tech Ltd approached the Sindh High Court (SHC) challenging the impugned notice for forced recovery of disputed amount. The notice was issued by Deputy Commissioner Inland Revenue UnitIII, Zone-IV, LTU, Karachi. Counsel for the petitioner stated in his constitutional petition that petitioner is registered with the Federal Board of Revenue, having NTN and fulTilling all the liabilities properly, never involved in any tax evasion case.
fBR asks Nops to keep expenditures below 15pc KARACHI
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he Federal Board of Revenue (FBR) has asked the non-profit organisations (NPOs) to keep their administrative expenditures below 15 percent of total income if they want to avail 100 percent tax credit. The decision was in line with a proposal in the budget for the fiscal year of 2017-18. Finance Minister Ishaq Dar, in his budget speech, said NPOs have misused the incentive of 100 percent tax credit, while their expenses were very high, including expenditure on buying of luxury goods and vehicles. The Pakistan Centre for Development Communication recorded more than 700 nonprofit organisations operating in the country in its directory published in 2012. Nonprofit sector is underdeveloped in the country. However, as the democratic institutions are getting stronger and globalisation is catching pace this sector is seeing increase in activism to support the government’s social services’ efforts. The Finance Bill 2017 also unveiled some incentives for NPOs. At present, if NPOs do not spend more than 75 percent of their income on charitable and welfare activities they lose the status of NPO and their tax treatment happens to be 30 percent.
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Dg Valuation revises customs values of exhaust fans
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KARACHI
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he Directorate General of Customs Valuation has revised the customs values of exhaust fans vide Valuation Ruling No 1174/2017 under Section 25A of the Customs Act 1969. According to the details, it has been brought to the knowledge of this Directorate General that the exhaust fans are being imported under invoiced as compared to the prevailing prices in the international market. Therefore, the Directorate General initiated an exercise for determination of customs values of ex-
haust fans. Importers had been requested to furnish invoices of imports during last three months showing factual value. Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the beneTit of difference in price is passed on to the local buyers. They were literature, evidences
and other “r contentions. They provided Ion methods given in Section ms values of Cooking Range on 25 (1) was found inapplicable. Thereafter, market enquiry as envisaged under section 25(7) of the Customs Act, 1969, was conducted. For the purpose, different markets were surveyed repeatedly. The computed value method as provided in Section 25(8) of the Customs Act, 1969, could not be applied as the conversion costs from constituent material at the country of export were not available. Online values of subject goods were also obtained. All the information so gathered was evaluated and analyzed
for the purpose of determination of customs values. Meanwhile, The Directorate General of Customs Valuation has revised the customs values of USB Data Traveler/USB Flash Drive /Memory Card and Memory Card Valuation Ruling No 1171/2017 under Section 25-A of the Customs Act, 1969. Customs values of USB data traveler/USB Tlash drive were determined under Section 25-A of the Customs Act 1969, vide Valuation Ruling No.1082/2017, dated 15-03-2017. The importers Tiled revision applications against aforesaid valuation ruling under section 25-D of the Customs Act, 1969.
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France announces hostage release in Congo Saturday June 10, 2017
World
PARIS: The French president’s office has announced the release of a French hostage kidnapped on March 1 in Congo. The brief two-sentence statement Sunday said the hostage-taking took place in the east of the central African nation, but gave no other details. It said French President Emmanuel Macron congratulated those involved in the release, “in particular Congo authorities for their mobilization and the effectiveness of their action.” The French hostage was among five workers, including Congolese and a Tanzanian, kidnapped from a gold mine operated by Canadian company Banro Mining Corp.
first leather industry starts work taiwan to levy duty to curb imports worth $350m on online purchases TAIPEI
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he Tirst leader production Tirm started work in western Herat province of Afghanistan with an aim to curb import of leather products from outside the country worth almost $350 million on annual basis. The factory was inaugurated on Tuesday in the presence of the provincial governor Mohammad Asif Rahimi in Herat Industrial park. The factory has been built with an investment amounting to $6 million and 3 hundred thousand. The local officials are saying that the opening of the factory will provide work opportunities for hundreds of the residents of Herat province. Hotak, a representative of the factory, said this is the first leather processing factory launched in Afghanistan which will
Kuwait finance House sees Q3 net profit rise 20% uwait Finance House (KFH), the country’s biggest Islamic lender, reported a 20.5 percent rise in third-quarter net profit according to a statement, as income from finance, investments and fees rose and expenses dipped. Net profit rose to 52.3 million dinars ($172.9 million) in the three months to Sept. 30, from 43.4 million dinars in the same period a year ago, the statement said. EFG Hermes forecast the lender would make a quarterly net profit of 33.8 million dinars, while HSBC had estimated a net profit of 64.0 million dinars. It is the second major Kuwaiti bank to report earnings this quarter after National Bank of Kuwait, which also posted a profit rise. The positive results contrast with a generally gloomier set of numbers for banks elsewhere in the Gulf as low oil prices drag on deposit growth and push up problem loans. –CB Report
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use raw materials from the domestic market. He said around $350 million flow out of Afghanistan on annual basis for the import of leather products. Provincial governor Rahimi hailed the private sector for the investment to launch the factory and said the first leather processing factory starting work in Afghanistan is a good news as he insisted on the factory officials to
make sure that the products are produced with a high quality. Insisting on further development of industrial park in Herat province, Mr. Rahimi said another industrial park will be opened in this province in the near future. According to the local ofTicials, around 25 manufacturing Tirms have started operations in Herat industrial park since last one year.
cellnex telecom buys 2,239 Swiss cell towers for €430 million
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panish celltower company Cellnex is expanding into Switzerland with the purchase of Sunrise Communications’ subsidiary Swiss Towers, owner of 2,239 sites. The deal, valued at €430 million, will see Cellnex, controlled by Spanish infrastructure company Abertis, take on 54% of the shares of Swiss Towers, with Deutsche Telekom Capital Partners taking 18% and Swiss Life Asset
Managers the other 28%. Francisco Reynés, chairman of Cellnex Telecom, said the deal “will enable us to further consolidate Cellnex’s European platform to Switzerland, a country marked by stable and secure economic and political environment, while also offering Cellnex clear synergies through its geographical location next to France and Italy, where the Company is also present”. –CB Report
requent online shoppers beware! Taiwan will roll out a new tax policy starting this September that will lower the tariff bar for imported goods shipped via oversea express delivery to NT$2,000 (US$66.37). At the moment imported products purchased online with a value below NT$3,000 are exempt from tariffs, but the government aims to lower tariff bar to NT$2,000 by September. Taiwan currently does not require online buyers of imported goods to pay tariffs or valueadded tax (VAT) , but charges buyers of online domestic goods 5 percent VAT which is unreasonable and unfair to domestic online businesses, said Deputy Minister of Finance Su Jain-rong. Additionally, the new policies were rolled out to
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prevent a small group of importers from long-term tax evasion and unfair import advantages that are impacting legal import traders, said Ministry of Finance officials. The particular group of importers often reassembles large packages into smaller packages to lower the product value, and constantly import the resized packages into Taiwan. These persistent importers account for only five percent of total imported good recipients, but the volume of imported items amount to nearly 36.4 percent of total imports, which places legal import traders at a disadvantage. To level the playing field for domestic and international online businesses, the government is introducing a new tariff for oversea online purchases in two phases to gradually lower the tariff threshold below NT$2,000. The first phase to be rolled out on July 1 this year will be targeting “frequent online importers” which is defined by Taiwan.
BD exports in may rise 1.4% y/y angladesh’s exports rose nearly 1.4 percent in May from a year earlier to $3.07 billion, which was 8.5 percent below the target, the Export Promotion Bureau said. For July-May, the Tirst 11 months of the country’s 2016-17 Tinancial year, exports rose 3.7 percent to $31.79 billion from a year earlier, 4.7 percent below the target. For the full year ending on June 30, the export target is $37 billion. Shipments of readymade garments, comprising knitwear and woven items, totalled $25.62 billion in July-May, up 2.2 percent on year. Exports in the Ti-
nancial year that ended in June 2016 were a record $34.24 billion, up 9.7 percent from the previous year, on the back of stronger garment sales. Meanwhile, Bangladesh is not getting foreign direct investment at an expected level although the government has taken different initiatives to give easy access to such funds, analysts said yesterday. They spoke at a dialogue on foreign direct investment and development of Bangladesh, at the monthly luncheon meeting of American Chamber of Commerce in Bangladesh (AmCham), at the Westin Dhaka hotel. –CB Report
project for building oil refinery approved by oil ministry
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BAGHDAD
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ermission for building an oil reTinery has been given by the Iraqi government in Kirkuk. The project value shall be around $5 billion. Asim Jihad, oil ministry spokesperson, stated, “The oil ministry has given approval for a new
reTinery to be built in Kirkuk.” Baghdad’s decision to build a huge reTinery in Kirkuk comes after the Black Force of the Patriotic Union of Kurdistan (PUK) seized control of the North Oil Company in the city of Kirkuk in early March, stopping the oil export for several hours before it resumed. The Kurdish force, backed by all Kurdish parties in Kirkuk, seeks to
force Baghdad to implement an agreement between the Kirkuk governor and Baghdad reached in January, notably in opening an oil reTinery in the multi-ethnic Kirkuk. After several days of force deployment, Prime Minister of Iraq Haider al Abadi met with a PUK politburo delegation led by the party’s Tirst deputy Kosrat Rasul Ali, Hero Ibrahim Ahmed (the wife of
Jalal Talabani) and the party’s Kirkuk ofTicials. They subsequently announced they had reached an agreement regarding the problems of the North Oil Company. According to Point 6 of the January agreement, the oil ministry should “help the Kirkuk province to begin expanding the Kirkuk oil reTinery and its work with Barham company to install a new reTinery.”
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Spain bans Moroccan sweets from entering Europe MADRID: Spanish customs authorities have released a list of items, which include special Ramadan candies, that Moroccan travelers will be prohibited from carrying through border crossings and ports to Spain. The list of banned items includes sweets like shabakia and sellou, which Moroccans have habitually sent to their relatives around the world. Spain has said the ban has been established in order to avoid confiscating and destroying them. According the Spanish custom authorities, these articles will not be allowed into Europe. The Spanish authorities have allowed the travelers to carry one liter of olive oil through its border crossings in Tangier or the occupied Ceuta and Melilla.
govt vows to achieve 7.2% growth target in next fiscal he government has said that it will keep alive the momentum of high growth rate in next fiscal through proper implementation of the budget. Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara has said that increasing economic activities at the local level, accelerated post-earthquake reconstruction, execution of national pride and top priority projects, agriculture modernisation, regular supply of power to the industry sector and improved road network will provide necessary impetus to maintain the momentum of high growth. As the provincial and national level elections are going to be held within January 21, 2018, they will definitely have an impact on economic growth, according to Mahara. “We will achieve the growth target in next fiscal as economic activities will rise due to increased government expenditure,” he said. –CB Report
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malaysian detained after cartons of unpaid ciggies seized
rench customs officials said Tuesday that they had intercepted 135 kilograms (300 pounds) of Captagon, dubbed the “jihadists’ drug”, at Paris’s Charles de Gaulle airport this year, a first for France. Captagon, a type of amphetamine, is one of the most commonly used drugs among fighters in the Syrian war. “It is the first time that this drug has been seized in France,” the customs agency said in a statement. Customs officials at Charles de Gaulle discovered 350,000 Captagon pills weighing 70 kilograms on Jan. 4 hidden among industrial moulds exported from Lebanon and apparently heading for the Czech Republic. An investigation was launched by German and Czech authorities “and it revealed that the real intended destination was Saudi Arabia. –CB Report
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portugal urged to reverse mounting taxes on tourists ortuguese restaurateurs and hoteliers are calling for the repeal of the growing number of taxes being levied on tourists. Capital city Lisbon and Cascais were the first municipalities in the country to introduce tourism taxes. Other municipalities such, as Porto and Vila Real de Santo Antonio, are also “discreetly” starting to tax tourists, Portugal’s hotel and restaurant association, AHRESP, said. Lisbon introduced a EUR1 (USD1.12) tax on tourists entering the city by air or boat and a EUR1 charge for each night spent in the city in 2016. AHRESP warned that these taxes could destroy the country’s lucrative tourism sector. It added that the flat rate on hotel stays, with an equal rate for five-star hotels as for cheaper accommodation, was an “injustice.” The organization also criticized the inconsistent way in which tourist taxes are applied by different municipalities across the country and said the industry should not be responsible for the administration of taxes that are not reinvested into the sector. While the number of provincial taxes on the industry is said to be growing, Portugal offers a reduced rate value-added tax on hotel accommodation of six percent. –CB Report
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captagon seizes for first time in france
Saturday June 10, 2017
MALAYSIA
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n attempt to smuggle 2,250 cartons of duty-unpaid cigarettes was thwarted by the Immigration and Checkpoints Authority (ICA) on Friday (May 26) night. The ICA said in a media release on Monday that a Malaysiaregistered tanker truck arriving from Malaysia was stopped for further checks. ICA ofTicers found 2,250 cartons of duty-unpaid cigarettes concealed in a modiTied compartment at the base of the tanker. The
total duty and Goods and Services Tax evaded amounted to about S$174,600 (RM538,688) and S$12,940 (RM39,923) respectively. The 36-year-old Malaysian driver, the cigarettes and the truck were handed over to Singapore Customs for further investigations. The truck is liable to be forfeited. The ICA added that it would continue to conduct security checks on passengers and vehicles at the checkpoints to prevent attempts to smuggle in undesirable persons, drugs, weapons, explosives and other contraband items. Said the ICA: “The same methods of concealment used by contraband smugglers may be used by terrorists to smug-
gle arms and explosives to carry out attacks in Singapore.” Meanwhile, The Customs Department foiled an attempt by a jobless man to smuggle in drugs valued at RM18.33mil here, its biggest haul this year. Weighing 198kg, the drugs were found hidden in fake speakers in his car boot. OfTicers from the department’s vehicle inspection and enforcement units stopped the Malaysian-registered car as it was entering the Immigration, Customs, Quarantine and Security (ICQS) Complex here at about 9.15am on Tuesday. The bulk of the drugs comprised heroin (154kg), with the others being methamphetamine (38kg) and ketamine (6kg).
Banks loans accounts career jobs swift codes exchange rates DHAKA
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e tried to keep the sections pretty speciTic so that you can Tind whatever you need in no minute. At the bottom the site map can help you to Tind your desired information. At the top you can see a number of tabs that can lead you to different facilities bank by bank. Our intention is to reduce your effort Tinding basic informa-
tion about the banks. Our vision is to make this portal a more useful one by providing career tips and opportunities in banking line. This site will not only help the consumers or only the information seekers but also will facilitate the bankers to know about all the latest information in banking sector that includes services of other banks, new schemes that other banks are adopting etc. This will surely increase the competition amongst the banks, and bangking sectors will grow rapidly effective
and easy for the consumers. Anyone can get beneTits from this site depends on the user level. As this site contains information about banks in Bangladesh any consumer or interested customers may have a glimpse on this site and can have the basic information about our banking sector. They can easily compare multiple services bank by bank and go for the suitable ones. They can also get to know about the services banks are providing. Not all the banks provide same beneTits nor the
interest rates are same in every bank. So this portal will be a huge support for the general consumers and customers.This portal is a huge privilege for the banks and the bankers as well. For better understanding we tried to point out the beneTits of BankInfoBD.com.We assume and strongly believe that this site will have about 100,000 hits per month which can obviously bring a good opportunity to our banks to express themselves to the world as a competitive one.
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Sika Paints owners issued with arrest warrants for tax evasion of Rs625m Saturday June 10, 2017
Lahore
LAHORE: Federal Board of Revenue issued arrest warrants for owners of Sika Paints in a huge tax evasion of Rs625million. According to Customs Today, owners of Sika Paints have been defaulters from the fiscal year of 2013 to 2016. FBR has issued arrest warrants for Javed Iqbal and Muhammad for which a special team has also been formed to arrest them. Federal Board of Revenue had issued many notices to Sika Paints but it did not pay any attention to solve the issue of heavy tax amount.
court extends remand of three suspects involved in cloth smuggling LAHORE
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he Special Federal Court of Customs Taxation and AntiSmuggling has sent three accused persons to jail due to extension in their judicial remand of 14 days. The accused were involved in smuggling of Indian made saris. Sources told Customs Today that three suspects, who were identiTied as Sajjad Qureshi, Abdul Sattar and Hammad Ahmad, were arrested by the customs authorities when they were making an attempt to smuggle a huge quantity of Indian made saris. Investigation team of Collectorate of Customs Preventive produced them before the customs court and asked for three days physical remand. On request of the in-
punjab govt cuts gSt to 5% for construction industry he Punjab government has cut GST on construction services from 16 per cent to 5pc as well as merged separately charged CVT, stamp duty and registration fee on properties to facilitate customers. The government has withdrawn exemption given in sales tax on internet services worth Rs1,500 and above packages. However, the exemption on internet packages under Rs1500, primarily being used by students, will continue as such. The Punjab government has also abolished exemption on GST in furnishing supply contracts to bring in the tax net all companies and firms concerned. The government was earlier giving exemption on furnishing supply contracts up to Rs50 million. However, the companies and firms involved in the furnishing supply contracts were evading taxes by splitting their bills below the ceiling of Rs50 million. –CB Report
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vestigation team, the customs court handed them over to the investigation team for further investigations. During hearing of the case accused Sajjad Qureshi asked for pardon from the court and said that this is their Tirst mistake. The honorable customs court stated that you people are lucky that you have arrested in your Tirst attempt. Customs Court after hearing both parties approved 14 days judicial remand of the three accused and sent them to jail. Customs Preventive has registered a case against the accused under Pakistan Customs Act of 1969. Meanwhile, The Special Federal Court of Customs Taxation and AntiSmuggling has received complete investigation challan of a case Tiled against a suspect who was arrested by the customs authorities from Allama Iqbal International airport while making an attempt to smuggle cell phones from China to Lahore.
ASo impounds 17 NDp vehicles in anti-smuggling campaign LAHORE
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ollectorate of Customs Preventive Anti-smuggling Organizations (ASO) has impounded non-customs paid (NCP) luxury vehicles worth millions of rupees during on-going drive against vehicle smuggling. Sources told Customs Today that the drive was initiated by the Collector of Customs Preventive ZulTiqar Ali Chaudhry after the assumption of his charge as a collector. The sources said that the ASO on the instructions of the Collector ZulTiqar impounded over 17 luxury vehicles during the month of May 2017 including Honda Civic black colour, Land Cruiser silver colour ,Toyota Corolla brown colour and other assorted brands of the vehicles. Sources said that when Anti Smug-
gling Organization teams asked the drivers/owners of these vehicles to produce legal documents regarding possession of these vehicles but they remained failed to produce any legal documents. The operations against the vehicle smugglers were led by Deputy Collector Moazzam Gulzar
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Bhatti while the team consisted of Superintendent Nasir Minhas and Inspector Gulzar Bhatti, Abdul Qayyum, Tariq Baig, Muhammad Aslam Chaudhary, Sajjad Bukhari and Mansoor Elahi Inspectors and others take part in the operation against non duty paid vehicles.
About 206 bottles of alcohol recovered JIt seeks Sharif family’s tax record from fBR from passengers at Lahore Airport It is pertinent to mention here The Joint Investigation Team
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ustoms ofTicials conTiscated about 206 alcohol bottles from the passengers travelling via different Tlights during raids on Allama Iqbal International Airport in the month of May. Sources told Customs Today that the ofTicers conducted operations in different Tlights coming from London to Lahore, Frankfurt to Lahore, Abu Dhabi to Lahore, Muscat to Lahore, Dubai to Lahore, Turkey to Lahore, Jeddah to Lahore and China to Lahore. Customs took actions in Pakistan International Airlines Tlights,
Turkish Airways Tlight, Gulf Air and Saudi Air Tlight. Customs allowed all the passengers to go after conTiscation of alcohol bottles from their possession. Customs has also conTiscated LEDs of different sizes from passengers. Cell phones, wireless sets and mobile accessories were also recovered from the Lahore airport. Customs ofTicials also conTiscated spare parts of vehicles from passengers coming from Europe and huge quantity of garments from a Tlight coming from China to Lahore. –CB Report
(JIT) in Panama case has asked FBR to submit the record of tax statements of Prime Minister Nawaz Sharif’s family. Sources told Customs Today that the JIT has summoned the FBR authorities in Lahore to submit complete record of bank statements, taxes and other relevant data. The commissioner Inland Revenue already reached Islamabad on Saturday evening for this purpose. Sources said that the commissioner has taken all records with him to submit it before the JIT.
that the JIT has asked for the record of Sharif family business dealings. The FBR has collected all the relevant record and the commissioner has reached Islamabad for this purpose. On other the hand, Hassan Nawaz and Hussain Nawaz have already appeared before the team. Hassan, who is recently arrived from London after receiving the summons from the JIT, brought with him some necessary and relevant documents to submit the same before the investigators. –CB Report
punjab govt imposes sales tax on internet services
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LAHORE
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he Punjab government is aiming to increase provincial revenue receipts to Rs348.31 billion in the next Tiscal year 2017-18 by adding another service to the tax net. Now, internet services have come under the tax net, which takes the
total to 62 services on which the provincial government will collect general sales tax. However, internet services under student packages, whose cost does not exceed Rs1,500, have been exempted. According to the provincial budget for FY18 announced on Friday, the Punjab government is expected to collect Rs230 billion in tax receipts and Rs117.32 billion in non-tax rev-
enues. It has revised downwards the tax collection target to Rs175 billion, which was earlier set at Rs184.43 billion, for the ongoing Tiscal year 201617. In a major move, the provincial government will Tloat investment bonds worth Rs25 billion in the next Tiscal year and spend the income from its sale on various infrastructure projects. The province is expected to receive Rs1,502 billion un-
der general revenue receipts in FY18. From the divisible pool of taxes, it will get Rs1,154 billion. The provincial government has abolished the Capital Value Tax (CVT) and property registration fee and merged both into the stamp duty in order to streamline the process for taxpayers, according to the Finance Bill tabled in the Punjab Assembly by Finance Minister Dr Ayesha Ghous-Pasha.
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Two ships take berth at Port Qasim KARACHI: Two ships C.V Mataquito and M.T Harmony-1 carrying containers and Furnace oil were arranged berthing at Qasim International Container Terminal and FOTCO Oil Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA) here on Friday. Meanwhile three more ships C.V Torrente, New Nexzos and Sakizaya Diaono with Containers, Furnace oil and Soya Bean also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was observed at the port at fifty percent on Thursday where a total of eight ships namely, Mataquito, Deira, Santa Virginia, Anthemis, Frontier Leader, Epic Sardinia, Maran Gas Asclepiusand Harmony-1 are currently occupying berths to load/offload Containers, Coal, Canola Seeds, LPG, LNG and Furnace oil respectively.
port of Savannah preparing to welcome record-breaking ship he Port of Savannah will usher in another record-breaking ship Thursday. The OOCL France is expected to cross over River Street between 2:30 p.m. and 3:30 p.m. The ship, which was built in 2013, is 1,203 feet long. It’s also capable of carrying 13,208 of those 20-foot shipping containers visitors to River Street are accustomed to seeing pass by. That’s 200 more than the last largest ship to hit the port, the COSCO Development. The Development arrived in Savannah last month at the time, it was the largest cargo ship ever to visit ports on the U.S. East Coast. Right now the Port of Savannah is the fourth busiest container shipping terminal in the country. Since 2008, the amount of trade at the Port has increased by 45 percent. Meanwhile, Port Tampa Bay and two
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other Florida sea ports moved closer to advancing projects to make harbors deeper, following the release of a US Army Corps of Engineers spending plan last week. The plan for spending of discretionary funds approved by Congress, released Wednesday, would provide $9 million to Port Tampa Bay, $17.5 million to JaxPort and $2.8 million for Port Everglades in Fort Lauderdale. “Since 2011, we have invested over $1 billion in state funding in our 15 world-class seaports and we appreciate the Trump Administration understanding the important role our ports have in supporting our economy and creating jobs,” Gov. Rick Scott said in a press release. Port Tampa Bay wants to deepen the Big Bend Channel from 34 feet to 43 feet, a project estimated to cost $55 million. –CB Report
Ports & Shipping
Adani ports sees 27% container volume rise WASHINGTON
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arge Indian port operator APSEZ has announced a strong performance on the back of higher container volumes in the 2017 financial year. As logistics arm of Indian Conglomerate Adani Group and owner of a large private port in Mundra, APSEZ also operates ports in Mundra, Dahej, Hazira, Dhamra and Kattupalli. It runs terminals elsewhere, in Murmugao, Vishakhapatnam, Tuna-Tekra while it is in the process of developing Container Handing Terminal at Ennore Port, Tamil Nadu. APSEZ reported a 27% hike in container volumes on a year-onyear basis to 4.24 million TEUs, having surpassed 4 million TEUs for the first time. For all types of cargo, volumes it handled grew 11%, surpassing India-wide cargo growth of 8% year-on-year. Profit after Tax grew by 35% to about $608.7 million in FY17. Consoli-
dated Revenue from operations registered a growth of 19 % to about $1.3 billion in the year. Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said: “This is one of our best all round performance. “Our strategy to diversify our cargo mix and focus on high value cargo continues to
yield positive results. “FY17 volume growth was led by containers and high growth in other ports namely Hazira, Dhamra and Kattupalli. “Our EBITDA margins have been improving year on year and this is likely to continue given our focus on operational efficiencies, technology and cost control”.
Saturday June 10, 2017
ports of Auckland moves cranes for automation orts of Auckland has successfully moved two 1,100 tonne cranes to ready Fergusson Container Terminal for bigger ships and automation. Two older, smaller cranes were lifted off their rails so the three newer, larger cranes could be positioned at the north of the terminal, where they will be able to work bigger ships. Partial automation of the Fergusson container terminal will be a game-changer for Auckland’s port, ensuring extra terminal capacity without reclamation. The technology will allow the port to handle up to 1.7 million TEU each year and support an Auckland population of around 2.7 million. Future technology will give the port additional capacity to serve a regional population of 5 million more than three times the current population. Ports of Auckland’s CEO Tony Gibson paid tribute to the company’s highly skilled engineering team who worked closely with crane manufacturing company ZPMC to carry out the project. Gibson said: “More people in Auckland means more imports and more shipping. –CB Report
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peel ports promises August sinkhole fix T
WASHINGTON
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he owner of the Port of Liverpool says repairs on the sinkhole at the Liverpool2 container terminal will be Tinished by October. And the £400m terminal, known for its giant red cranes, has also welcomed its latest ship as Peel bosses say plans for growth are on track. The container terminal, which is big enough to host the world’s biggest ships, was ofTicially opened in November. But in February the 50ft-deep sinkhole appeared at the newly-built Seaforth container terminal in February. In April, Peel Ports boss Mark Whitworth told the ECHO that surveys had pinpointed the problem and that repair work was starting. Now Peel has given more details of the work that is going on. A cofferdam is now being built so work can go on below the
water level so the hole can be Tilled and the quayside wall repaired. Meanwhile, Peel says grout is being injected “into a weakness in the quay wall that gave rise to the initial problem”. Major works should be Tinished by August, with remaining works set to be Tinished by October. Peel Ports says: “Extensive investigations and surveys have been carried out to determine that the rest of the terminal is unaffected.” Meanwhile, “Cargo handling capacity of these two ports is being enhanced to more than double of the present capacity,” Sahu said adding that Subarnarekha mouth port is being developed with the help of a BOST partner. The government have invited interested parties to set up a riverine port on the Mahanadi river mouth. Simultaneously, the government is pushing the Centre to include projects in the Sagarmala initiative so that the state
gets its due share of the developmental works, he said. Sahu said that though railway is not under the state subject, still the state government have been pushing for unique ways to increase rail connectivity. At the time of the formation of the BJD government in 2000, seven districts like Kendrapara, Nayagarh, Kandhamal, Boudh, Deogarh, Nabarangpur and Malkangiri were without rail connectivity. Also Subarnapur had marginal connectivity at the periphery of the district, Sahu said. He said that the state government have come forward with unique scheme of giving land for free or at concessional rate. It also directly contributed to the construction cost. Thus, new works were sanctioned by the Railways. Khura Road-Bolangir, HaridaspurParadip,Angul-Sukinda, JeyporeMalkangiri, Jeypore-Nabarangpur and Talcher-Bimalagarh lines will
provide connectivity to the unconnected districts, Sahu said. “To promote railway works, the state government have also waived 100 per cent of stamp duty and registration fee on all the 18 railway projects, a rare achievement,” Sahu claimed. The Port of Townsville has predicted the upgrade will reduce carbon emissions by removing 8230 Bdouble trucks off road highways between Brisbane and Townsville each year. The business case for the channel upgrade has been sent to Treasurer Curtis Pitt and Ports Minister Mark Bailey for consideration. Port of Townsville chief executive ofTicer Ranee Crosby said the expansion project had been in the planning phase for more than 10 years. “The channel capacity upgrade is a critical project to ensure the future growth of North Queensland as well as the competitiveness and via- bility of the Townsville Port,” she said.
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Hyderabad ASO seizes 109 NDP cigarettes worth Rs3.3m HYDERABAD: Anti-Smuggling Organization (ASO) Hyderabad has confiscated foreign origin non-duty-paid 109 cartons of different brands of cigarettes including Pine, Royal Business and Reds valued Rs3.3million during a recent action on the National Highway Hyderabad. Sources told Customs Today that ASO Additional Collector Rehmatulah Vistro deputed Deputy Collector Mushtaq Shani, Superintendent Ghulam Shabir Pulphoto, Inspectors Mirza Asaduddin, Iqbal Mughal, Abid Ahmed Khan to check the vehicles.
Saturday, June 10, 2017
CUSTOMS BULLETIN
Dg Valuation revises customs values of Iranian chocolates KARACHI wAQAR AHmeD ANSARI www.customsbulletin.com
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he Directorate General of Customs Valuation has revised the customs values of chocolate of Iran origin through Valuation Ruling No 1175/2017 under Section 25A of the Customs Act, 1969. According to the details, the Director General of Customs Valuation vide Order in Revision No. 333/2017 dated 18-04-2017 remanded matter of customs values of Iran origin chocolates for re-determination. Hence, an exercise was conducted to determine Customs values of chocolates of Iran origin in line with current price trends in the international market. A meeting was scheduled on 2905-2017 with stakeholders and importers of subject goods. All stakeholders are requested to submit invoices of imports during last three months showing factual value. Copies of Contracts made/LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last four months showing the differences in price (excluding duty and taxes) to sub-
stantiate that the beneTit of difference in price is passed on to the local buyers. The importers / stake-
holders contended that market surveys were earlier conducted from high end retail outlets and re-
quested that different markets be consulted for the survey of subject goods. They further insisted that
subject goods were actually being purchased / imported at much lower values than those determined vide Valuation Ruling No. 1042/2017 dated 13.02.2017. They requested that the values be determined keeping in view the contents and quality of Chocolates and the difference in freight as they mostly import the subject goods via id route from Iran. Method adopted to determine Customs values: Valuation methods provided in s n 25 of the Customs Act, 1969 were duly followed and applied sequentially to addresses valuation issue at hand. Transaction value method provided in Sub-Section (1) of Section. Meanwhile, The Directorate General of Customs Valuation has revised the customs value of massage chair, foot massager and other massager through Valuation Ruling No 1173/2017 under Section 25-A of the Customs Act, 1969. This Directorate General has earlier circulated VDB values of massage chair, foot massager and other massager vide Valuation Data Base Letter No.239/2017 and 240/2017 dated 06-03-2017, respectively. However for uniformity of assessment, the Directorate General initiated an exercise for determination of customs values for the subject goods.
customs preventive seizes non-duty paid toyota premio, registers fIR KARACHI
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he Customs Collectorate of Preventive, Anti Smuggling Organisation, NMB Wharf, Karachi as registered the First Information Report against unidentiTied suspect and the Customs ofTicial believes that the alleged criminal(s) were involved in tax evasion of Rs 3,137,736. The complainant,
Senior Preventive OfTicer, Custom House, Karachi Azhar Malik, in the FIR mentioned that credible information was received that a smuggled/non-duty paid vehicle Toyota Premio car bearing registration number plate AAH747 is plying on road near Habib University, in the vicinity of Gulistan-e-Jauhar, Karachi. It also mentioned that after receiving the reliable information, a team was constituted to watch and intercept the vehicle. The Customs team mounted strict surveillance in the vicinity of the spotted area and found the car parked near the
private university. As per the FIR, the occupant of the vehicle, after seeing the Customs ofTicials coming towards the vehicle, skipped away, leaving car behind him. The Customs team waited for considerable time but no one turned-up to claim the vehicle. According to the FIR, a detailed search was conducted in presence of musheers namely Muhammad Tahseen and Mohsin Mughal and found that ignition key was switched in the vehicle but no documents regarding the registration and import/procurement of the Toyota Premio was inside the car by its occupant. The
FIR stated that detail examination was carried out and it was revealed that it has Chassis No:ZZT2400140149, Model 2007 (as per seat belt), used in condition and the Forensic Test Report No: AIG/FD/Veh/OR/187/2017 informed that no other number has been deciphered under the present chassis serial ZZT240-0140149. It also claimed that the Motor Registering Authority, Karachi, informed the Customs OfTicial that registration number AAH-747 is allocated to Honda Civic, model 1996, registered in the name of Noman Zahid while no one has come forward to own the
Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi
vehicle and no document has been produced to substantiate the lawful import/procurement/possession/claim of the vehicle. The FIR also stated that in light of all veriTication reports, it has been established that the vehicle was brought into the country other than speciTic route and Toyota Premio car, VVT 16 Valve is valued at Rs25, 47, 329/- and total duty/taxes involved around Rs3, 137, 736/- was evaded. The vehicle has been seized for violating Section 2(s) and 178 of Customs Act, 1969 punishable under clause (8) and (89) of Section 156(I) ibid.