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Karachi, Wed June 14, 2017

ISLAMABAD

M FAIZAN

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he Federal Board of Revenue (FBR) has expressed concerns over the slow progress of agreement between Pakistan and China on Electronic Data Interchange (EDI). Sources told Customs Today that there is a huge difference in Sigures reveled by Chinese Customs on its exports to Pakistan and the Pakistani import data from China allegedly due to under invoicing, causing revenue losses amounting to billion of rupees. According to unofSicial Sigures, this differences is $6 to 7 billion but the FBR ofSicials put the esti-

mated difference between $4 and $5 billion. In response to a query, FBR Chairman Dr Muhammad Irshad told Customs Today that imports worth $4 billion are still questionable and missing under the shade of mis-declaration. “I have ordered investigation into the issue and have also directed stern action against the importers involved in miseclaration but due we need cooperation from the Chinese customs in

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this regard,” he said, adding that the FBR seeks progress on EDI agreement with China. However, he expressed the hope that technical arrangement with China for EDI would be soon Sinalized. It is pertinent to mention here that already Federal Board of revenue has been issued an alert on the issue of misdeclaration on import from China.

BBIA stays surplus with additional income of Rs3.1 million

Budget preparation, session: Dar lauds Finance Ministry, FBR officials

NA body for resolving employees’ problems on priority

PCA detects duty, tax evasion by M/s IOSO Int’l

Customs Preventive foils bid to smuggle huge quantity of heroin at Karachi airport

CustomsstaﬀoftheBBIAirportsurpassedits assignedtargetwithanadditionalcollection | See pAge 02 |

Dar has appreciated the hard work put in by the budget team at the Ministry | See pAge 03 |

NA Standing Committee on Overseas Pakistanis and HR Development | See pAge 04 |

PCA has summoned M/S IOSO Int’l in duty and tax evasion of Rs567615 | See pAge 14 |

A team of Customs Preventive has foiled a bid to smuggle a huge quantity of heroin | See pAge 16 |

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Sialkot FIA unearths illegal money exchange located in Daska Wednesday, June 14, 2017

SIALKOT: A team of Federal Investigation Agency (FIA) unearthed an illegal money exchange located in village Dharam Kot, Daska tehsi here.Khalid Anees Divisional Deputy Director FIA told media persons that the FIA has also recovered big amount of cash in diﬀerent national and foreign currencies from there. He said that the FIA also arrested the accused owners Kashif Suhail and Tahir Iqbal , who had been running the said illegal money exchange there. Two days ago, the FIA had also unearthed an illegal money exchange being run in their jewelry shop by accused shop owners Iftikhar Ahmed and Muhammad Nawaz in Sialkot city’s congested Phullaan Wali Gali locality here.

National

BBIA stays surplus with additional income of rs3.1 million

Faisalabad Adjudication Dc Asma issues oNo in favour of ASo FAISALABAD

NAeeM SheIkh

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he Customs Adjudication Deputy Collector Asma Hameed has issued Order-inOriginal (ONO) in favour of Anti Smuggling Organization (ASO) by declaring the confiscation smuggled curtain cloth (750 kilograms) as lawful. As per details, Faisalabad ASO intercepted a van bearing registration no: BQU-009 and asked the driver Zohaib Younas son of Muhammad Younas to produce the documents showing the legal import of the cloth but he remained fail. Therefore, the officials impounded the cloth under Section 2(s) read with Section 168 of the Custom Act, 1969 and with Import and Export Act, 1950 punishable under Section 156 (I) 89(i) of Custom Act, 1969. Later, the case was forward to adjudication. However, the accused persons as the claimants have shown their willingness to pay duty and taxes on the seized goods which amount to confession. Hence it is proved that seizes curtain cloth is smuggled one. There order for confiscation of the seized cloth in favour of the federal government under section 156(1)89 of the Customs Act 1969.

ISLAMABAD

tArIQ DerYA

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ustoms staff of the Benazir Bhutto International (BBI) Airport surpassed its assigned target with an additional collection of Rs3.1million during May of Financial Year 2016-17.

According to Sadia Usman, Assistant Collector, that the BBI Airport Islamabad generated Rs28.10million revenue through accompanied baggage under the head of duty taxes during May FY2016-17. She added that the BBIA was allocated with the target of Rs25.11million under the same head. Telling details about the last month, she said the BBI baggage de-

partment earned Rs2.82million against the assigned target of Rs2.80million under the same head and same period. Assistant Collector said that during April FY16-17, the BBI baggage surpassed the allocated target. During April FY16-17, the accompanied baggage seized three consignments of mobile phones from passengers carrying non-tax-paid phones from abroad. During April FY 2016-

17, the customs staff deployed at baggage side of the BBI Airport Islamabad seized Sirst smuggled phones’ consignment of 681 smart phones valued Rs7.00million. The 2nd conSiscated consignment of smuggled smart phones comprises 44 mobile phones worth Rs0.7million whereas the third smuggled mobile phone consignment comprises 34 smart phones priced Rs0.5million.

Shc orders customs to release consignments on payment of taxes

KARACHI

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indh High Court has ordered Customs authorities to release imported consignments of NIDO milk, Cerelac and Dog Meal after payment of duty and taxes. A SHC division bench, comprising Justice Munib Akhtarand and Justice Arshad Hussain Khan, heard Ghulam Hyder Shaikh advocate, counsel for petitioners who main-

tained that the subject consignments were being detained on ground that drug license was not obtained by the petitioners. He contended that these are dairy or food products rather food supplements and condition of obtaining drug license is not attracted. He said securing a drug import license is very cumbersome and takes almost 2 years. The consignments would perish if not released soonest, he prayed. The bench agreeing to the contention that consignments

in question fell in the category of “food supplement” allowed the release of the same holding that no drug license is required in this case. Meanwhile, The government has granted 3-5% duty concessions on import of machinery and equipment and other project related items for setting hotels located in area of 30km around the zero-point in Gwadar. Further zero percent duty has been allowed on import of machinery, equipment and other project related items including capital

goods, for setting up of power generation plants, water treatment plants and other infrastructure related projects located in an area of 30 km around the zero point in Gwadar. The concessions have been allowed through Fifth Schedule of Customs Act, 1969 issued by the Federal Board of Revenue (FBR). However these concessions have been allowed on conditions: Ministry of Industries, Production & Special Initiatives, shall certify in the prescribed manner and

format as per Annex-B that the imported goods are bona Side project requirement. The authorized ofSicer of the Ministry shall furnish all relevant information online to Pakistan Customs Computerized System against a speciSic user ID and password obtained under section 155D of the Customs Act, 1969. The goods shall not be sold or otherwise disposed of without prior approval of the FBR and payment of customs duties and taxes leviable at the time of import.

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ANF arrests two drug paddlers, recovers 1.2kg marijuana KARACHI: The Anti Narcotic Force has arrested two drug paddlers and recovered huge cache of narcotics from their possession. ANF spokesperson said that the ANF carried out a raid in district Malir and arrested Mirza while recovered 1.2 kilogram marijuana from his possession. In another raid carried out near Jinnah Terminal while arrested Ghulam Hussain and recovered 900 grams heroin from his possession. ANF said that the Hussain was trying to flee Jeddah, Saudi Arab in flight PK-731 when ANF official arrested the accused and recovered heroin from his possession.

Wednesday June 14, 2017

National

customs Appellate tribunal postpones hearing of cases till next dates

Budget preparation, session: Dar lauds Finance Ministry, FBr

LAHORE

SAJID NAwAZ

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he Customs Appellate Tribunal Bench-II, comprising Judicial Member Omer Arshad Hakeem and Technical Member Imran Tariq, heard 11 cases on Monday and adjourned all of them until the next hearing. According to the details, Customs Appellate Tribunal heard cases including Muhammad Anwar versus Directorate of Intelligence and Investigation Faisalabad, M/s Supreme Tube versus Customs Lahore, Mir Alam Khan versus Customs Faisalabad, Yasir Bashir versus Directorate of Intelligence and Investigation Faisalabad. On Monday, Customs Appellate Tribunal heard cases of Shakir Hussain versus Directorate of Intelligence and Investigation Faisalabad.

Adjudication declares seizure of Land cruiser legal FAISALABAD

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ustoms Adjudication Collector Mirza Mubashir Baig ordered the impounding of a Toyota Land Cruiser following a clause 156 (1) 89 of the Customs Act-1969. Customs intelligence and investigation intercepted a F/O Toyota Land Cruiser with registration No: BD-5593 near Civic Centre and found the chassis number tampered. Official asked the driver, Srfraz son of Muhammad Boot, to produce the documents regarding the legal import and lawful possession of the vehicle but he failed to do so. Customs impounded the vehicle and official sent chassis of the said vehicle for forensic test. A seizure report was submitted by Intelligence Officer Mansoor Nasir to the adjudication where Collector Mirza Mubashir Baig declared the impounding of the Toyota Land Cruiser lawful and issued an Order-In-Original (ONO) in favor of customs intelligence.

ISLAMABAD

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inance Minister Ishaq Dar has appreciated the hard work put in by the budget team at the Ministry of Finance and Federal Board of Revenue during the budget preparation and ongoing session. The minister said that all proposals received from the parliamentarians were being decided upon based on their merit and practicability. Keeping with the past four years’ tradition and democratic spirit of the PML-N Government in view, the government is accommodating maximum possible proposals from the parliamentarians. While chairing a meeting to review various proposals received from parliamentarians related to the budget for FY 2017-18, he emphasized ensuring the well-being of the general public was the top priority of the budget. He said that all sectors of the economy will be catered in the Sinal budget document. He expressed the conSidence that the measures announced in the budget would enhance the welfare and prosperity of the general public, and enable Pakistan to achieve higher, sustainable and inclusive economic growth. Special Assistant to Prime Minister on Revenue and the Finance Secretary apprised the Sinance minister of the proposals submitted by

the honourable members of Parliament during the ongoing budget session in Parliament over the last two weeks. They also briefed the minister on the feedback received from other stakeholders regarding the budget. They assured the minister that a thorough study of the different proposals received has been carried out. Special Assistant to Prime Minister on Revenue, Haroon Akhtar Khan, Finance Secretary, Secretary Economic Affair Di-

Dar expressed confidence that the measures announced in the budget would enhance the welfare and prosperity of the general public, and enable pakistan to achieve higher, sustainable and inclusive economic growth

NAB to file reference against ex-minister

PESHAWAR

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he National Accountability Bureau (NAB) Khyber Pakhtunkhwa has decided to Sile a reference in the accountability court against former provincial minister for labour Sher Azam Wazir, former secretary Workers Welfare Board Tariq Awan and others for their alleged involvement in corruption in acquisition of land meas-

uring 260 kanals at Mouza Shahi Bala sited near the provincial capital. An ofSicial communique said the decision to Sile the case was taken at regional board meeting of NAB Khyber Pakhtunkhwa. Brig (R) Farooq Naser Awan, director general NAB KP, presided over the meeting. The meeting was attended by directors, additional directors, case ofSicers, senior legal consultants and other concerned ofSicers. It said that the regional board recommended filing of reference

against the former provincial minister Sher Azam Khan, former secretary Workers Welfare Board Peshawar Muhammad Tariq Awan and others. The communique said the accused were allegedly involved in corruption and corrupt practices in acquisition of land measuring 260 kanals at Mouza Shahi Bala in Peshawar and receipt of kickbacks and bribes.“An amount of Rs26 million was extracted as bribe from landowner by officials of WWB and others.

vision and senior ofSicials of the Ministry of Finance and FBR attended the meeting. Meanwhile, The Sinance ministry has strongly rebutted the news reports regarding appointment of Atif Bajwa, CEO of Bank Alfalah, as the governor of State Bank of Pakistan (SBP). In a statement, the Sinance division said that the reports as mere speculations. At present no proposal for appointing Atif Bajwa as Governor, SBP is under consideration.

FIA nabs human traﬃcker ederal Investigation Agency (FIA) on Friday arrested a human trafficker Sami Ullah from village Maallo Mahey-Sattokey, Daska Tehsil. According to FIA Divisional Deputy Director Khalid Anees, the accused was sending innocent people abroad illegally after getting huge amount of cash from them.

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Pakistan needs $2.73b to achieve remittances target of $20.2b KARACHI: The country needs $2.73 billion in the month of June 2017 to achieve remittances target of $20.2 billion for fiscal year 2016/2017. According to State Bank of Pakistan (SBP) the overseas Pakistan sent $17.46 billion in the first eleven months (July – May 2016/2017) as compared with $17.84 billion during the same period in the last fiscal year. Overseas Pakistani workers remitted $19.91 billion in 2015/2016, showing a growth of 6.38 percent compared with $18.72 billion received in the preceding fiscal year.

Wednesday June 14, 2017

Business

NA body for resolving employees’ problems ISLAMABAD

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ational Assembly Standing Committee on Overseas Pakistanis and Human Resource Development Monday recommended the ministry to resolve the problems of employees on priority. The committee meeting held here at the Parliament House under the acting Chairperson of Shakila Khalid Luqman, MNA. The meeting was attended by MNAs including Mian Imtiaz Ahmad, Sabiha Nazir, Aisha and Aliya Kamran, besides ofSicials of Ministry of Overseas Pakistanis and Human Resource Development and Ministry

‘uSc Abbottabad set new record of sale’ ABBOTABAD

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of Law and Justice.The committee deferred the Domestic Workers (Employment Rights) Bill, 2016 which was moved by Dr Azra Fazal Pechuho due to her absence. The committee discussed the Employment of Children (Amend-

SBp issues new guidelines to combat money laundering

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tility Stores Corporation (USC) Abbottabad region on Saturday set a new record of Rs 20m sale during first two weeks of Ramzan. This was stated by the USC All Pakistan Employees Union Joint Secretary Khalid Khan while talking to media here. He further said that the employees achieved the target with committeemen and dedication during this holy month. Khalid Khan stated that subsidized items are being sold on all USC outlets in all over Pakistan to provide relief to the masses and people of Hazara are also getting the advantage of this subsidy.

ment) Bill, 2016 moved by Aliya Kamran, MNA in detailed. The representative of Ministry of Law and Justice informed the Committee that the subject Bill related to Ministry of Interior. The secretary, Workers Welfare Fund informed

the committee that the salaries of employees of Workers Welfare Board KP have been released till June, 2017. The committee recommended that the issues of employees of M Tech project Punjab should be resolved, at the earliest. Meanwhile, Asian Development Bank (ADB) Country Director Xiaohong Yang has called on Finance Minister Ishaq Dar to discuss ADB’s current portfolio. During the meeting, Dar appreciated that ADB’s portfolio in Pakistan has been increasing for the last three years and was likely to grow further in coming years. The minister expressed satisfaction over the pace of project implementation and both sides emphasized efforts to keep up momentum of Pakistan-ADB cooperation in different spheres.

KARACHI

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he State Bank of Pakistan (SBP) has issued fresh guidelines to combat money laundering and Sinancing of terrorism in line with the United Nations Security Council (UNSC) resolutions. Pakistan has been under pressure over the issue of money laundering as the Federal Investigation Agency (FIA) keeps arresting people involved in this illicit practice. In the middle of November 2015,

US authorities revealed that they had arrested Pakistani currency dealer Altaf Khanani in September of that year. They accused Khanani Money Laundering Organisation (MLO) of laundering illicit funds for organised crime groups, drug trafSicking organisations and designated terrorist groups throughout the world. It was a shock for currency traders and a source of concern for Pakistan which, despite being a major victim of terrorism, faced international pressure to do more against this menace. The SBP said the relevant para-

graphs of Regulation 1 and Guidelines stand amended with consequential changes. “Banks/development Sinance institutions (DFIs)/micro-Sinance banks (MFBs) are advised to ensure compliance of the requirements in letter and spirit,” said the SBP. Recently, key exchange companies said sending money out of Pakistan through illegal channels has been made impossible. People involved in the currency business are not even ready to discuss this issue. However, they accept that this illegal business cannot be eradicated completely as it has deep roots and extreme secrecy.

‘Sco membership to help improve pak-India ties’ LAHORE

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ull membership status of Shanghai Cooperation Organisation (SCO) for Pakistan and India will help improve relations between the two neighbouring countries, said the chairman Pak-India Business Council (PIBC). “The SCO is a forum for resolving issues and it has opened up another window of cooperation between the two nations to settle their disputes through dialogue,”PIBC Chairman Noor Muhammad Kasuri. He said the PIBC was optimistic about a positive outcome of the development. He said that full membership status of Pakistan and India in the organisations was a step in the right direction and the PIBC appreciated it. “Whatever the situation is, the only way out of resolving issues and diﬀerences is dialogue and the SCO has provided another opportunity for the leadership of regional countries to sit together and talk with each other,”he added. He said that the presence of these countries would also strengthen the SCO, broaden its role and enhance its importance. He said that the PIBC was of firm opinion that poverty, illiteracy, diseases, unemployment and terrorism were common challenges facing India and Pakistan and they could find solution to these problems by diverting their energies towards these issues instead of fighting with each other.

Additional taxes on cement, steel rejected ISLAMABAD

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he representatives of top businessmen bodies have said that additional taxes on cement and steel sectors will make housing costly. Pakistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain, All Karachi Industrial Alliance (AKIA) President, Business-

men Panel of FPCCI Senior Vice Chairman and former provincial minister Mian Zahid Hussain, in a statement, said that the additional taxes will also increase the cost of developmental projects, therefore, the government should consider reversing it. Mian Zahid Hussain said that many people linked to the cement, steel and construction sector will not pass on the impact of taxes to the end users but use the oppor-

tunity to mint money which must be discouraged. The business

leader said that builders and developers have perused tax officials for fixed tax and promised to deposit billions of rupees in taxes. However, by the end of the year, it proved to be a tactic as only 112 million rupees were deposited. Before the imposition of the fixed tax, the government had collected Rs. 2.6 billion and the fall triggered withdrawal of the facility. Now builders are protesting and demanding an extension of

the special tax regime for two more years which is unlikely. The protests would soon come to the logical end as the government has shown no sign of any compromise. Tax officials are unwilling to give another chance to those who deceived them. He noted that an increase in the cost of housing for the poor and middle-income groups would have a negative impact on the overall situation.

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Wednesday, June 14, 2017

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ederal Board of Revenue Member Inland Revenue Operations Rehmatullah Khan Wazir has said that there is a need to introduce strong tax culture in Pakistan and expand the tax net. Addressing a post budget seminar arranged by Lahore Tax Bar Association (LTBA) the other day, he said that tax revenues of the provinces have increased after the National Finance Commission award. â&#x20AC;&#x153;This is up to the provinces to use the revenues on the welfare of the people and on developmental projects, he said. He, however, said that it was also a reality that the people did not want to pay taxes in Pakistan. He said that in order to promote tax culture in the government is already taking measures but it is impossible to increase the tax net without the cooperation of masses. On the occasion, other speakers said that tax revenue is backbone of any economy in the world, but unfortunately, the tax system of

Pakistan is not taxpayers friendly as many people wanted to pay their tax liability but they have been always discouraged due the various bottlenecks in the system. They said that the government should take corrective measure to make the tax system people friendly so everyone can pay his tax. Lahore Tax Bar Association President Qameruz Zaman , General Secretary Abdul Waheed, Vice President Shahbaz Sidique, Ch Zahid RaSique Syed, Syed Ali Rizvi, Khawaja Adnan Zaheer and Ch Zahid Attique were also addressed the seminar .

use ces to n i v o r he the p re of t s up to welfa e h â&#x20AC;&#x153; this i t s on ental venue elopm v e d the re n o , said e and wever o h , e peopl said. h at the ts, he lity th a e r a projec es in lso ay tax was a p t i o t t a t th ot wan e did n l p an o e p pakist

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Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDItorIAL

Issue of circular debt

ccording to newspaper reports, the government has decided to acquire Rs41 billion from commercial banks to partially retire the circular debt which has been piled up to Rs 402 billion during the last four years. The current government had cleared around Rs 480 billion in circular debt after coming to power in June 2013 which was accumulated during the Pakistan People’s Party government. Experts believe the government will collect the money in billions from the electricity consumers to pay it to the independent power producers, Pakistan State Oil and Khyber-Pakhtunkhwa government. The country has been facing 10 to 12 hours load-shedding a day, affecting not only industrial sector, but also domestic consumers. However, the government is still trying to feed its nationals on false promises and tall claims for the last four years. A vendor’s shop cannot be managed in a way the government is managing the country’s affairs in this fast era of trade, finance and development. It is unfortunate that the country doesn’t have full time finance minister, foreign minister or even the prime minister. All the official cadre is busy in personal affairs, and the whole show is being run on ad-hoc basis, leading the country to mismanagement and administrative failure.The government hopes the injection of fresh money will push the independent power producers to enhance their electricity generation and fill the gap between demand and supply. The circular debt is a new phenomenon introduced by the official cadre in recent years to bring further complications in the financial management. According to the finance ministry, it will issue sovereign guarantees to arrange the money for the power sector and it will bring down the circular debt to Rs360 billion. Ironically, the circular debt will come down to Rs360 billion, but the stock of debt would reach Rs415 billion.A simple solution to the problem is that to generate more electricity through alternative means. Pakistan has abundant renewable energy resources and there is a need to make concerted efforts for it. But the government authorities are too busy in personal matters that they do not have time to utilize their energies on the projects of public interests. There is no doubt in the notion that the ruling elite lacks vision and programme to even manage the day to day affairs of the country.

Agriculture sector woes P

LAHORE

Dr AFtAB AFZAL

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akistan’s agriculture share to the gross domestic product is nearly 24 percent and employs about 43 percent of the country’s workforce, but performance of this vital sector has been slowing down for the last one decade, pushing the country into the list of nations threatened by food insecurity. The overall economic scenario of the country is improving. However, the state of agriculture economy is disappointing as it could not maintain average standard rate of improvement due to negligence and apathy of the official cadre. The depleting water re-

sources, obsolete methods of cultivation and lack of research are also areas of concern affecting this sector. The governments after governments not only failed to launch any research and development programme, but also could not devise proper pricing and procurement policies to change the lot of farmer community. Most of the small farmers have left the profession once for all and have started working as labourers in industrial units. Pakistan owns the best agriculture land of the world and canal system to prove itself as the food capital of the world. However, it has failed to fulfill even the nation’s food requirements as it posted minus growth in the agriculture sector in one and half

decades of this century. The economy of the country is changing and the issues faced by the agriculture sector also need out of the box solutions. The traditional ways of cultivation and handling of agriculture economy have lost their credibility. The officials associated with the sector will have to coordinate with agricultural community to devise new methods of learning and ensure cash supply wherein it is required. Pakistan is among the top 10 producers of wheat, cotton, sugarcane and citrus fruit but food insecurity is coming as challenge for the nation. The country has strong livestock sector, contributing 11 percent to the GDP and 35 million people are engaged with it.

However, the government will have to take a proactive approach to resolve its financial and administrative issues. The prime minister has already announced an agriculture package worth billions of rupees, but it is facing snags at the implementation stage. The state of agriculture can only improve if all the stakeholders join hands and work in unison. If industry needs government funding and tax relief, the agriculture sector also requires package of concessions and incentives to meet the growing demand of food in the country. The government also needs to develop infrastructure in rural areas, improve irrigation network and ensure funding through concessionary loans.

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UK tractor sales increase by 4.1 percent LONDON: The Agricultural Engineers Association (AEA) has released May’s agricultural machinery sales figures, showing a 4.1 per cent increase. UK registrations of agricultural tractors (over 50hp) remained ahead of last year for the month of May, showing a marginally smaller year-on-year increase than April at 4.1%. Every month of the year to this point has seen a rise, and the five month total is in fact up 16.7% at 5,104 units. Tractor sales in the UK have began to improve in the first half of 2017, after a period of relative decline. Meanwhile, AEA says UK exports of agricultural and outdoor power products rose by 3.1% in 2016 to £1.76 billion. The EU remains the UK’s key trading partner taking 62% of all exports, up from 60% in 2015. Other European destinations accounted for a further 7%, while North America’s share of exports declined to 17%.

Sarhadi welcomes restoration of gIttA train service PESHAWAR

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enior Vice President (SVP), PakAfghan Joint Chamber of Commerce and Industry (PAJCCI) central vice president, All Pakistan Customs Agents Association (APCCA), Ziaul-Haq Sarhadi has welcomed the re-launching Goods-in-Transit-toAfghanistan (GITTA) train after remaining the service closed for a period of seven years. In a statement issued here on Thursday, Mr. Sarhadi has expressed the hope that federal government will withdraw SRO 121 and besides container cargo, the transportation of loose-cargo to Afghanistan would also be allowed. The steps will enable the handover of empty container in Karachi to Shipping Line and so the 70pc Afghan

Transit Trade (ATT) goods that had shifted to Chabahar Port can also be attracted back through Pakistan to Afghanistan. He said that restoration of GITTA train was the long standing demand of SCCI and Frontier Customs Agents Group (FCAG), saying the decision has hailed by all stakeholders including customs clearing, forwarding, border and shipping agents and Afghan traders have expressed happiness and satisfaction over it. Mr. Sarhadi, who is also the chairman of SCCI standing committee on Railway and Dry Port said that the wise-decision of the federal government will provide cheap, secured and trustful goods transportation facility and beside earning millions of rupees revenue for railway will also strengthen the provincial economy. He also called for the operation of cargo train for exports from Khyber Pakhtunkhwa as the wagons coming to Peshawar with GITTA train will use to return Karachi empty.

Wednesday June 14, 2017

Chambers

technical education mandatory for economic development: FccI T

FAISALABAD

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echnical Education is imperative to give a quantum jump to the industrial and economic development of Pakistan in addition to effectively tackling the issue of unemployment, said Engineer Ahmed Hassan Vice President Faisalabad Chamber of Commerce and Industry (FCCI). He was addressing a function after distributing cheques of Rs3.3 million among the passed out students of Vocational Training Institutes (VTIs) of Faisalabad under Sustainable Economic Empowerment Program (SEEP). He said that youth has a major share in the overall population of Pakistan but it is surprising that only 1 student gets technical education as compare to 10 students who opt for the traditional or formal education. He said that statistic have proved that students with technical and vocational skills gets jobs immediately whereas the students with traditional and formal education have to face difficulties in getting job.

Moreover, they are also unable to start their own businesses as they lack fundamental skills or expertise. He appreciated the Punjab Government for launching VTI program and said that under this program various courses are launched to equip deserving students with market driven skills. He also lauded the SEEP under

which the government provides funds to the passed out students to start their own businesses. In this connection the students who had completed computer applications course will get Rs70,000, textile fitter, motorcycle mechanic, auto mechanics and beauticians will get Rs60,000 while the students who had completed

Businessmen unanimously opposes budget KARACHI

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ederation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that Federal Board of Revenue (FBR) has deliberately proposed such amendments to tax laws through Finance Bill 2017 to create gulf between the government and private sector. Zubair Tufail, President, FPCCI at a press conference rejected budget recommendations and said at a joint meeting held a day earlier of entire business community unanimously opposed the budget 2017/2018. He said that it was bureaucratic budget and FBR had not bother to promote business activities in the country. Tufail said that the business community had agreed on an 11-point demands, which the gov-

ernment should accept before approving the budget from the parliament likely on June 14, 2017. The 11 points has been sent to the prime minister and the Sinance minister for consideration. FPCCI president said that it was agreed by the business community that in case such demands were not accepted then extreme measures would be taken to protest changes in the budget. The points raised by the business community are included: Refunds of sales tax (for which RPOs were issued till April 30, 2017) and income tax should be paid before August 14, 2017, as announced in the budget speech. Turnover tax should be kept at one percent instead of 1.25 percent proposed for tax year 2018. Super tax should be withdrawn as it was badly impacting large companies and enterprises.

Withholding tax on commercial and industrial imports to be implemented as agreed in the Sinance committee of national assembly by FBR chairman and stakeholders. Two percent further tax on sales to unregistered persons should be withdrawn. Commercial importers should be exempted from sales tax and income tax audits, as they pay 17 percent sales tax plus 3 percent value added tax and six percent income tax in advance at clearance stage. Fixed tax regime for builders and developers should be continued as per last year’s agreement with stakeholders. 10 percent tax on undistributed proSits should be withdrawn. FBR ofSicers should not raid premises of any taxpayer, unless 15-day notice is issued for the payment or reply by taxpayer. If FBR not satisSied with the reply, action may be taken after informing trade association or chamber.

dressmaking, embroidery and industrial stitching course will get Rs 50,000. Engineer Ahmed Hassan underlined the importance of technical education and also presented a comparison of developed countries that had made progress only due to their technically skilled youth. Nazeer Hussain Bajwa Chairman District Zakat Committee told that deserving students are getting free technical education in different trades in the selected 12 district of Punjab. However, the Chief Minster Punjab intends to enhance its scope throughout the Punjab in addition to enhancing funding for this purpose. Area Manager Malik Muhammad Rafique told that there are 7 vocational training institutes in Faisalabad with enrollment of 5,000 students. He further told that out of these, 57 passed out students are getting financial help under SEEP to start their own businesses. Later Engineer Ahmed Hassan distributed cheques among the passed out students of VTIs.

two member team of uNIDo, gcIp visited rccI he two member team of United Nations Industrial Development Organization (UNIDO) led by National Project Coordinator Global Clean tech Innovation Programme (GCIP), Shahina Waheed called on president Rawalpindi Chamber of Commerce and Industry (RCCI) Raja Amer Iqbal here. Shahina Waheed appreciated the role of RCCI in promoting business activities and taking lead in new initiatives. While highlighting the role of UNIDO and GCIP she said the prime objective was to assist the sustainable development of industrial sector in the Pakistan. She said GCIP is supporting Pakistani entrepreneurs (SMEs and Startups) with the best ideas that deal with today’s most imperative energy. –CB Report

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Peshawar Customs Dy Superintendent Aslam to retire on Oct 17 ISLAMABAD: Muhammad Aslam Khan, a BS-16 officer of Customs Department, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Deputy Superintendent at Model Customs Collectorate, Peshawar, will stand retired from the government service with effect from Oct 17, 2017.

Wednesday June 14, 2017

Islamabad Ac-Ir Shahida granted performance allowance

Appraiser Salman Ahmed punished over misconduct

ISLAMABAD

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ISLAMABAD

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hahida Nazeer, a BS-17 officer of Inland Revenue Service, selected through the process of internal job posting (IJP), has been granted performance allowance. The officer, presently posted as Assistant Commissioner-IR, RTO, Bahawalpur, was granted performance allowance with effect from June 6, 2017. 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 06-03-2015 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, Three BS-17 officers of Inland Revenue service, selected through the process of internal job posting (IJP), have been granted performance allowance. The officers including, Ray Muhammad Najam Nawaz Saqib, Abdullah Zulfiqar and Fatima Anjum, presently posted in Regional Tax Office.

customs Dgtr Dg rubina wasti to retire on Aug 6 ubina Wasti, a Pakistan Customs Service of BS-21, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Director General, Directorate General of Training & Research (Customs), Karachi, will stand retired from the government service with effect from August 6, 2017. Rubina Wasti was made Director General of Directorate General of Training & Research (Customs), Karachi on March 7, 2017. Meanwhile, The transfer/posting of Riaz Khan, an officer of Inland Revenue Service of BS-18, made vide Board’s Notification No.0782-IR-II/2017 dated 08-032017, has been held in abeyance till June 30, 2017. –CB Report

alman Ahmed, a Pakistan Customs Service ofSicer of BS-16, has been given major penalty over misconduct. Disciplinary proceedings under Government Servants (EfSiciency & Discipline) Rules, 1973 were initiated against the ofSicer, posted as Appraiser at Model Customs Collectorate Exports (Port Muhammad Bin Qasim), Karachi vide charge sheet dated 17.09.2014. Junaid Ahmad Memon, the then Additional Collector (BS-19), MCC Exports (Port Muhammad Bin Qasim), Karachi, was appointed as inquiry ofSicer to probe into the account of various acts of omission and commission committed by the

accused ofSicer constituting ‘inefSiciency’ and ‘misconduct’. According to the inquiry report, the charge of ‘misconduct’ was established against the accused officer. A show-cause notice dated 06.05.2015 was issued to the accused officer. Subsequently, an ad-

dendum in the show-cause notice was also issued to the accused on 03.04.2017. On receipt of his defence reply, he was called for personal hearing by the Authorized officer on 05.01.2017 and 03.05.2017 respectively. After considering the charges framed in the

charge sheet, inquiry report and other available record, the accused officer has been found guilty of “misconduct” under rules 3(b) of the Government Servants (Efficiency and Discipline) Rules, 1973. The Member (Admn) being authority in this case, after having considered all aspects of the case and the recommendations of the authorized ofSicer, imposed the major penalty of “reduction to lower stage in time scale (three stages lower)” upon Salman Ahmed, Appraiser under rule 4(1)(b)(i) of the Govt. Servants (EfSiciency & Discipline) Rules, 1973. His Performance Allowance shall be stopped for one year from the date of award of penalty as provided in Para 7(iii) of the Performance Allowance Guidelines, 2015 and he will have to appear afresh for restoration of the same.

Quetta customs allocates rs2272.61m T

QUETTA

tArIQ DerYA

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he Model Customs Collectorate (MCC) Quetta has assigned Rs2272.61million of All Duty Taxes for June of Financial Year FY2016-17. The targets of current month (June FY16-17) are higher than the assigned targets of previous month (May FY16-17). The Federal Board of Revenue (FBR) has allocated Rs809.61million of Customs Duty (CD) whereas earmarked Rs1105.00million of Sales Tax (ST) and Rs38.00million was assigned under the head of Federal Excise Duty (FED). The Collectorate of Quetta was assigned Rs320.00million of With Holding Tax (WHT). During the month of May FY16-17, the Collectorate of Quetta was allocated Rs593.71million of CD whereas earmarked Rs811.00million of ST and it assigned Rs18.00million of FED and MCC Quetta was allocated Rs238.00 million. The MCC Quetta was assigned

Rs512.75million of CD while it was assigned Rs700.00million of ST and Collectorate of Quetta was allocated Rs15million of FED and it

was assigned Rs170.00million of WHT during April of Financial Year 2016-17. The sources were not only optimistic to meet the as-

signed targets of current month (June FY16-17) but also hopeful to surpass the allocated targets of all duties and taxes.

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PIA requests Customs to check new special security seals to curb smuggling KARACHI: The administration of Pakistan International Airlines (PIA) has requested the Customs authorities to check special security seals during surveillance and checking. According to sources, due to the increased smuggling of drugs and other valuable goods through airlines, the PIA management has developed special security seals to restrict any kind of smuggling. The special seals have also been made for diﬀerent parts of the planes which could be opened easily by anyone. Even in the washroom of the planes the hidden openings are sealed with the new security seals, the source informed Customs Today. On the directives of higher authorities, the Pakistan Customs has already beefed up the surveillance and checking of the passengers on all the airports across the country to prevent and apprehend the culprits involved in the smuggling.

court sends suspect on physical remand in mobile phones smuggling case KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi sent a suspect, Muhammad Asif Aslam, to the Customs Department on physical remand. The suspect was booked for attempting to smuggle non-duty paid contraband 340 mobile phones tentative value of Rs 10 million from Dubai to Karachi. During the hearing, the investigation officer produced the suspect before the court and informed that the accused came from Dubai by Emirates Airlines flight no EK-602 and was intercepted by the staff of the Customs Preventive. He further informed the court that during the search of his baggage, the staff recovered 28 Samsung mobile

phones, 9 Motorola brand, 172 LG brand, 45 HTC brand, and four IPhones 4. A total of 340 mobile phones, were recovered from him. He was asked to produce lawful documents of the goods, however, he failed to produce any lawful documents. Investigation officer added that after the formalities, said goods were seized and accused was arrested and case was registered in violation of section 2 (s), 16 and 139 of the Customs Act 1969 punishable under clauses (8) (9) ibid read with baggage rules, 2006 notified by FBR vide SRO 666(1)/2006 dated 28/06/2006. He requested the court for physical remand, after his arguments, court sent him to customs department and directed investigation officer to produce him on next date of hearing along with progress report.

Wednesday June 14, 2017

Karachi

govt surges Shc restrains tax dept from Sindh sales tax on telecom services to 19.5% taking coercive action against petitioner S KARACHI

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KARACHI

M B rANA

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he Sindh High Court (SHC) has directed the tax authorities not to take any coercive action against the petitioner on a constitutional petition Siled by Abu Talib against disputed recovery of Rs 4,301,068 from him. During the hearing of petition, a two member bench, headed by Justice Aqeel Ahmed Abbasi also issued notices to the tax department and deputy attorney general for June 8, 2017 and directing them to Sile their respective para wise comments on next date of hearing. During the hearing, counsel for the petitioner stated that pursuant to order passed under section 122 (1) of the Income Tax Ordinance, 2001, dated 20/05/2017 by assistant commissioner Inland Revenue Audit Unit-III, Zone-IV RTO Karachi against the petitioner for tax year 2016, he moved an appeal along with stay application before the commissioner Inland Revenue Appeals IV, RTO Karachi which is still pending for disposal. According to the petitioner, however, during pendency of such ap-

peal, he was threatened by high ofSicials of the tax authorities for recovery of above mentioned amount by adopting coercive action including attachment of bank accounts of the petitioner which cause serious Sinancial injury to him. Citing Secretary Revenue division, commissioner Inland Revenue

Appeals IV, assistant commissioner Inland Revenue Audit Unit-III, Zone-IV RTO Karachi as others as respondents, he pleaded the court may restrain them from taking any coercive action against him and also direct to concern authority to decide his appeal within reasonable period.

indh government has increased sales tax on telecom services to 19.5 percent from 19 percent in the provincial Budget 2017-18. Sindh Chief Minister Syed Murad Ali Shah in his budget speech on Monday said that for next financial year, the government is proposing to rationalize rate of Sindh Sales Tax on Telecom Services, and bring it at par with other provinces, by increasing it from 19 percent to 19.5 percent. Telecom sector is already charging this amount from consumers. This will allow the Sindh Revenue Board (SRB) to generate an additional amount of Rs400 million. Meanwhile, Sindh government has allowed concessionary sales tax on various services rendered within the province. Sindh Chief Minister Syed Murad Ali Shah in his budget speech for fiscal year 2017/2018 announced following concessionary measures to boast economic activity: Reduction of Sindh Sales Tax on Travel Agents & Tour Operators from 10 percent to 8 percent. Reduction of SST on services provided by specific class of Indenters and Call Centers from 13 percent to 3 percent.

Sindh for collecting sales tax on goods

KARACHI

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indh Chief Minister Syed Murad Ali Shah has sought powers to collect sales tax on goods, saying that the federal government shuns a discourse with the province in this connection. “I didn’t want to talk on NFC award, but I am asked so let me say it [NFC] has become a sore point with me and it is the federal government’s failure that has not yet constituted a new one,” he told a post-budget press conference at Sindh Assembly’s auditorium. He said that the federal govern-

ment shunned even a discussion on handing over sales tax on goods to Sindh, saying that the centre has underperformed’ to accumulate taxes to meet its revenue target during

the current Siscal year. Resultantly, he said, Sindh suffers a shortfall of revenues by Rs 68 billion for low NFC disbursement, until now. “I reckon the shortfall in NFC disbursement to Sindh will grow to Rs 108 billion by June. We cannot see the NFC [full] disbursement to happen,” he said, adding that the federal government immediately slashed Sindh’s share from Rs 493 billion to Rs 480 billion that caused a Sinancial setback to the province. The Sindh government has scaled up the collection target of sales tax on services to Rs 100 billion for 2017-18 from Rs 78 billion this Siscal year. He also made it clear that the

government rolls out Ramazan Package disbursing Rs 3.2 billion among 1.7 million of the ‘poorest’ population in the province as each individual will receive Rs 2000 ahead of Eidul Fitr. On K-Electric privatisation, he said his government is not part of the negotiations, as federal water and power ministry is the sole authority to decide power supplying company’s fate. “Sindh government has nothing to do with it [K-Electric privatisation],” Murad said, adding that without the K-Electric exception, other power distributors in Sindh such as Hesco and Sesco are the worst insofar as supply of electricity to people is concerned.

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Customs adjudication issues show cause notices to seven accused parties Wednesday June 14, 2017

National Faisalabad ASo seizes 399 crates of NDp rani Juice worth rs472122

FAISALABAD: Collectorate of customs adjudication has issued seven show cause notices to accused parties in different seizure cases. Sources told Customs Today that Collector Mirza Mubashir Baig issued the show cause notices to the accused parties asking them to appear before the customs adjudication on 12.06.2017. The cases were filed through customs intelligence and investigation and anti-smuggling organization and customs intelligence Karachi.

hyderabad customs receives rs12m thru auctions & duty taxes

FAISALABAD

NAeeM SheIkh

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HYDERABAD

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he Anti-Smuggling Organization (ASO) Faisalabad has confiscated 399 crates of foreign origin Rani Juice being smuggled from Karachi into Faisalabad. The expiry date of the seized juice is 10-04-2018 while market value of the juice is Rs472122 involving customs duty and taxes of Rs72044. Sources told Customs Today that Deputy Collector Uzma Tariq directed the Anti-Smuggling Organization about the smuggling of Rani juice. After receiving this information, Deputy Collector immediately constituted a raiding team comprising Superintendent Dilawar Hussain, Inspector Masood Saeed Chohan and Sepoy Muhammad Hayat, Muhammad Ashraf, Muhammad Yasin and Muhammad Anwar. The ASO team raided a godown of a Truck Adda named M/s Azad Sindh Punjab Goods Transport Network Company near Rehmania Mills, Jhang Road, Faisalabad.

Mianwali ASo impounds non duty paid Land cruiser he Customs Anti Smuggling Organization (ASO) Mianwali has impounded a Toyota Land Cruiser. The market value of the seized vehicle is Rs39,24,000 involving customs duty and taxes of Rs27,24,000. Sources told Customs Today that ASO Mianwali Deputy Collector Rana Falik Shair received a tip off regarding the smuggling of above said vehicle. He immediately constituted a raiding team comprising Superintendent Choudhary Muhammad Sardar, Azhar Hussain Jafri, Riasat Hussain, driver and sepoys Saif Ullah, Ghulam Mohayudin, Muhammad Yousaf, Muhammad Abdullah, Faiz Ahmed and Sher Ahmed. â&#x20AC;&#x201C;CB Report

odel Customs Collectorate, State Warehouse Hyderabad, earned Rs12million during the two months including April and May of Fiscal Year FY2017 through auction and duty taxes of vehicles and miscellaneous items impounded by Ant-Smuggling Organization Hyderabad. Hyderabad customs presented a number of vehicles for auction and generated Rs4.3million during April 2017 while other goods attracted suitable bids. Other miscellaneous goods, including white cumin and non-duty-paid different brands of cigarettes and smuggled item of cloths, were presented for open bids of auction

and customs duty in the wake of all duty taxes including customs duty of Rs4.5million sale taxes, Rs962555 federal excise duty, Rs609708 and income taxes duty and Rs606354 income tax. So the

total collection is Rs6.7million during May 2017. The tax evasion was detected by Hyderabad Customs State Warehouse under the supervision of Deputy Collector Mushtaq Shahani and his team

which comprised Superintendent Nadeem Ahmed Usmani, State Warehouse In-charge Inspector Abdul Rauf Qureshi, Inspector Tariq Ghani, Aslam Khan and Havaldar Muhammad Hussain.

Shc bars tax dept from passing final order on petition filed by M/s Dg khan cement T

KARACHI

M B rANA

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he Sindh High Court (SHC) has directed the tax authorities not to pass final orders or make adjudication against M/s DG Khan Cement Company Limited without the permission of the this court. The court ordered this on a constitutional petition filed by the petitioner, seeking exemption under 5th schedule of Customs Act, 6th schedule of the sales tax act, and 2nd schedule of the Income Tax Ordinance. While the hearing of the petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also directed the petitioner to file a reply of the show cause notice before authority concern. Earlier, counsel for the peti-

tioner stated that it is amongst largest cement manufacturer of Pakistan with a production capacity of 14,000 tons per day and

imports various items LED panel light, tube light, flood light with fixtures etc and availed exemption as entitled under 5th sched-

ule of the customs act, 1969, 6th Schedule of the Sales Tax Act, 1990 and 2nd Schedule of the Income Tax Ordinance 2001. According to the counsel, however, officials of the customs authorities alleging therein that since the goods imported by it operate on alternating current (AC) voltage, rather than, on direct current (DC) which is used/ and operates in the renewable energy technologies, therefore, the concessions and the claimed notified items are not available to the subject imports. Citing Secretary Revenue Division, Collector of Customs Appraisement West, Director Port Clearance Audit, Collector (Adjudication-I) and others as respondents, counsel pleaded the court may direct tax authorities to issue exemption from customs duty, income taxes etc on above mentioned reference.

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Dubai Customs organizes “Path of Happiness” training

World Customs

DUBAI: Training Centre at Dubai Customs organized a training workshop entitled “Path of Happiness” which aims at raising awareness around happiness amongst Dubai Customs staff. Dr Shaikha Al Ghafiri, acting director of Dubai Customs’ Training Centre pointed out that the training workshop is part of the UAE’s vision to provide attractive environment to staff and clients. “Supported by Dubai Customs high management, the Training Centre organized this workshop as the first one in Ramadan. This will help have happier and more productive employees” she said. Al Ghafiri added: “The name “Path of Happiness” was selected as it translates and reflects our ambitions towards a happier society in compliance with Dubai Government’s vision and initiatives”.

Swallowing drugs ‘will not fool Dubai customs staff’ method increasingly used by drug smugglers swallowing liquid cocaine in condoms will not get past Dubai Customs’ technology and expertise, its director says. Interpol said last week that more West African and Asian gangs are using the technique on drug carriers to evade detection. But Ibrahim Al Kamali, director of passenger operations at Dubai Customs, said his staff were alert to it and ready for anyone suspected of drug trafficking. “Drug mules use this technique to avoid being inspected or being delayed through the inspection process,” Mr Al Kamali said. “They believe this form of smuggling drugs will not be detected. But Dubai airports are equipped with highly developed scanners that detect strange objects in people’s bodies.” In the first quarter of this year, Dubai Customs foiled 312 attempts to smuggle drugs, with most of those arrested aged between 26 and 35. Last year, 1,030 smuggling attempts were thwarted. –CB Report

Smuggler jumps from moving vehicle, agents find marijuana

Indonesia sells 14 trillion rupiah of bonds, above target ndonesia sold 14 trillion rupiah ($1.05 billion) of bonds at an auction, above the indicative target of 12 trillion rupiah, the finance ministry’s financing and risk management oﬃce said. The government sold t-bills maturing in September 2017 with a weighted average yield of 4.95300 percent. The T-bills maturing in June 2018 had a weighted average yield of 5.82984 percent. The bonds maturing in May 2022 had a weighted average yield of 6.66981 percent. The weighted average yield for bonds maturing in May 2027 was 6.92990 percent, higher than 6.92116 percent at the last auction on May. The bonds maturing in August 2032 had a weighted average yield of 7.38672 percent, higher than previous auction’s 7.35253 percent. –CB Report

WASHINGTON

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gents assigned to the Nogales Border Patrol Station seized nearly 600 pounds of marijuana and arrested the driver after he jumped out of the rolling vehicle in an attempt to Slee on Thursday evening. The incident occurred on the east side of Nogales when an agent attempted to pull over the driver of a 2001 Isuzu Trooper who was suspected of loading multiple packages of marijuana

into the vehicle. The driver initially stopped, but as the agent approached the vehicle, the driver sped away in an attempt to Slee. Approximately 200 feet from the initial stop, the driver jumped out from the moving vehicle, leaving the vehicle to roll uncontrollably for about 100 feet. The vehicle ultimately stopped after colliding with brush near the side of the road without causing damage to nearby property. The driver fled on foot into the Santa Cruz River, but was apprehended without further incident after a short foot pursuit. As agents inspected the vehicle, they discovered 12 packages of sus-

pected marijuana. The driver and the packages were transported to the Nogales Border Patrol Station for processing. The total weight of the marijuana was 585 pounds. The driver, a juvenile Mexican national, was presented for immigration and narcotics charges as per Tucson Sector Guidelines. Federal law allows agents to charge individuals by complaint, a method that allows the filing of charges for criminal activity without inferring guilt. An individual is presumed innocent unless and until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

Wednesday June 14, 2017

Vietnam customs seizes waste air conditioners uthorities in Vietnam have intercepted illegal consignments of hundreds of used air conditioners in three separate incidents this month. Police action taken under the Asian Network for Prevention of Illegal Transboundary Movement of Hazardous Wastes also resulted in a raid on a warehouse in Ho Chi Minh City, netting hundreds of used refrigerators and air conditioners amongst a hoard of waste electronic goods. According to reports in Vietnam’s Customs News, over 300 sets of used air conditioners were seized at Cat Lai port, Ho Chi Minh City, last week in a consignment from Japan. Customs officers discovered 326 outdoor units and 319 indoor units of various brands amongst other prohibited waste goods. On May, customs officers at the port of Cai Mep, Vung Tau, found hundreds of waste air conditioners upon opening an unclaimed shipment that had arrived in April. A day earlier the same officers had seized air conditioners and refrigerators in a separate shipment. Since the beginning of this year, Cai Mep port customs claims to have checked and seized 10 containers of illegally imported goods, used electronics and refrigeration product. On April 25, police raided a warehouse in Ho Chi Minh City to find it full of around 500 waste refrigerators and air conditioners amongst other banned used household electrical goods. –CB Report

Italian police bust migrant traﬃcking ring in Sicily ROME

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talian police said Tuesday that they had broken a smuggling ring between Tunisia and Sicily which was preparing to bring migrants with suspected jihadist links to Europe. The “ScorpionSish” operation had been shadowing the group since January, targeting 15 Italian or Tunisian citizens sought by arrest warrants.

No details were released on those taken into custody, but police said in a statement they had seized car and speedboats in several Italian regions. The investigation found that the group had made at least Sive trips, and at one point police managed to follow a boat ferrying 14 migrants and 100 kilogrammes (220 pounds) of contraband cigarettes. With summer approaching they were preparing to increase the number of trips to two a week, using speedboats to cross from northeast

Tunisia to the Trapani region in western Sicily in about four hours. The migrants and cigarettes were brought to Sicilian beaches, where accomplices were waiting with dry clothes, according to police. The group was apparently willing to bring over people sought by Tunisian authorities for serious crimes or possible links with jihadists, but the police broke up the network before a trip carrying these suspects could be made. Police are now trying to identify the people who

were hoping to get to Europe, including one who told the trafSickers he was worried the Italian authorities would stop him for “terrorism”, according to wiretapped conversations. The Tunisian coast guard has struggled to keep up with smuggling gangs using high-performance vessels to ferry people across the Strait of Sicily. The trafSickers carried about 15 migrants paying 2,000 to 3,000 euros each and dozens of kilos of cigarettes, with each crossing generating around 40,000 euros ($45,000).

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Customs seizes mobile phones, laptops, accessories at Lahore Airport Wednesday June 14, 2017

Lahore

LAHORE: Customs officials have confiscated about 18 mobile phones of Apple 7 and 7 plus from a passenger travelling from Dubai to Allama Iqbal International Airport Lahore. Sources told Customs Today that the officers conducted operations in different flights. A flight, coming from Dubai to Lahore, was also checked. Customs Preventive found 18 mobile phones of Apple-I 7 in the luggage of a passenger. Accused identified as Shahab Arshad was travelling by Sri Lankan Airline flight OD 131. In another action, customs has impounded three laptops of different models. Customs on Monday has also confiscated three I-pads, two car cameras and mobile accessories from a passenger travelling from Dubai to Lahore.

customs Appellate tribunal set aside oNo in gas generating sets import case LAHORE

SAJID NAwAZ

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ustoms Appellate Tribunal set aside collector’s order in case Siled by the Collector of Customs Sambrial, Sialkot against M/s National Machinery Store Room Dry Port Sialkot. Justice ® Malik Manzoor Hussain Chairman Customs Appellate Tribunal Sinally remarked about the case that the order passed by the Collector of Customs (Appeals) is not in accordance with the law and not sustainable. The appeal is allowed and Order-in-Original (ONO) has set aside. As per brief facts of the case, the recipient imported the consignment of old and used gas generating sets with control panels and other accessories and sought clearance by

Fto adjourns hearing of case filed by Iqbal khan & company he Federal Tax Ombudsman (FTO) has postponed the hearing of a case filed by Muhammad Iqbal Khan Company against the Regional Tax Oﬃce-II (RTO-II), Lahore until the next date. According to the details, FTO consultant Tariq Yousaf heard the case FTO-LHR/0000846/2016 of Iqbal Khan and Company in which the counsel for the appellant argued that RTO has not released the refund to the appellant for the last three years. He said that the RTO collected excessive tax from the company during the last three years. The company approached the oﬃcer concerned many time for issuance of the refunds but the department did not pay the refunds after the passage of reasonable time. Finally, the appellant decided to approach the FTO seeking interference in this case. –CB Report

Siling goods declarations by declaring HS Code 802.3900 attracting customs duty @ 5 percent and got assessed the goods under claimed HS Code and deposited the customs duty @ 5 percent. During the course of audit, it was observed that gas generating sets did not fall under HS code 8502.3900 and attracting customs duty @ 10 percent. After the show cause notice adjudication authority passed the Order-inOriginal (ONO) and order to pay short duties mentioned by customs authorities. Being dissatisSied importer Siled the case before the collector of customs (Appeals) who passed the order that appellant deposited the duties ought rightly and case not re-assessed or re-opened. Being aggrieved and appellant Siled the case before the customs appellate tribunal on the grounds that the order passed by the collector of customs (Appeals) is not correct.

pcA detects duty, tax evasion by M/s IoSo Int’l LAHORE

M hAYAt

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ustoms Lahore Post Clarence has summoned M/S IOSO International in duty and tax evasion of Rs567615 by on the import of tarpaulin. According to the details, the PCA Lahore observed that the import clearances data against HS Code 6306.1210 effected from various Customs Collectorate during the calendar years. 2012 and 2013 revealed that inadmissible concession of sales tax and value added sales tax under the SRO 1125()/2011 dated 31.12.2011, wrongfully availed on the import of Tarpaulin i.e. sun shedding which is speciSically excluded from that ambit of said SRO and hence was not entitled for such beneSit under the said SRO. It has been observed that im-

Fourteen kilogram gold smuggler’s 14-day judicial remand approved

he Special Federal Court of Customs Taxation and AntiSmuggling has approved a 14day judicial remand of an accused Muhammad Riaz in a 14-kilogram gold smuggling case. Accused Riaz was arrested by the customs authorities after the rejection of pre-arrest bail plea by the Supreme Court of Pakistan. Accused Riaz is the main accused in smuggling of huge quantity of gold smuggling. Earlier, the customs authorities have arrested two female suspects involved

in the smuggling of a 14-kg gold and currency from Multan International Airport. According to details, customs authorities at Multan airport recovered 14-kg gold worn by both females in their hands and feet as bangles (Kara) and anklets (Pazaib) along with 39,000 Saudi riyals and United Arab Emirates Dirham. Multan Customs had seized the gold and foreign currency worth Rs64.6million and lodged an FIR against both arrested women for smuggling and money laundering. –CB Report

porter had imported various consignments consisting of tarpaulin and got it cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/201 1, dated 31.12.2011. Hence, it was said that the importers have short paid an amount Rs 567615 sales

tax, additional sales tax and income tax due to wrongful, concession under the SRO I 125(D/2011 dated 31.12.2011. The importer was asked to pay above mentioned short paid amount of duty/ taxes within 10 days of receipt of this letter positively.

court sends accused to jail on judicial remand he Special Federal Court of Customs Taxation and Anti-Smuggling has sent two accused to jail on extension of judicial remand of 14 days. According to Customs Today, two accused Rehmat Ali and Nasir Khan were arrested by the customs intelligence. Customs intelligence had also recovered a huge quantity of foreign made smuggled cloths and related goods from their possession. Customs intelligence has told the court that accused were involved in smuggling of cloths from Afghanistan into Lahore and Faisalabad via different routes. They had

caused a huge loss to national kitty in the forms of taxes and duties. The amount of the recovered cloths is Rs8.3million, customs investigation has told the court. On Monday, jail ofSicials presented them before the customs court that sent them to jail for further judicial trial. Meanwhile on Monday, customs court adjourned 15 different cases. Pre-arrest bail pleas of three accused were also adjourned for new dates of next week. Pre-arrest bail plea of an accused Nadir Khan was puts off for next Monday as lawyer of the case could not satisfy the court. –CB Report

customs I&p conducts raids in narcotics, marijuana cases

LAHORE

SAJID NAwAZ

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ustoms Investigations and Prosecution (I&P) has initiated probe and conducted raids after registering FIRs against accused parties, including M/s Pak Afreedi Goods Transport Adda and M/s Qadri Hajvery Goods on the charges of han-

dling contraband items. Sources told Customs Today that Customs Intelligence, after registering FIRs against the accused parties, has started raids at the godown of M/s Qadri Hajvery to arrest the culprits. Sources said that on the pointation of Hajvery Goods Forwarding Agency, the customs team seized a huge quantity of foreign origin cigarettes worth Rs 10 million. In the month of April, the

mobile squad had seized 560 mobile phones of Samsung brands worth Rs 8.4 million. An FIR was also lodged against the culprits. In the month of May the ASO staff raided the premises of Ghulab Khan and recovered huge quantity of smuggled/non duty paid Split Inverter air conditioners and washing machines of LG brand valuing Rs9 million and a criminal case was also registered against the

accused persons. Similarly, ASO staff had recovered foreign origin curtain cloth having weight 6555 kilograms from M/s Pak Afreedi Goods Transport Adda worth Rs4 million. Likewise, two narcotics cases were also reported by Customs Preventive staff posted at GPO wherein cocaine and marijuana was seized from an incoming parcels and FIRs have been lodged accordingly.

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Richards Port posts new safety signs WASHINGTON: The new warning boards spell out the many hazards associated with the north breakwater area – especially the slippery dolosse and the big waves. NEW signage has been erected by TNPA at Alkantstrand, warning of the dangers of climbing on the dolosse on the northern breakwater. The pier is a favourite spot for anglers who are regularly seen risking the slippery walk along the dolosse to get to their favourite casting place. It has also become a choice venue for visitors who want to take ‘selﬁes’ and often stand on the dolosse to have the sea view in the background.

churchill port, rail line sold to Manitoba First Nations for $20M $20-million deal has been made to sell the Port of Churchill and a rail line that links the area to the rest of the province. The owner of both, Omnitrax Rail, has signed a memorandum of understanding with Missinippi Rail LP, a group of Manitoba first nations. The deal would allow Omnitrax to finance the sale through a loan to buyer Missinippi, confirmed Mathias Colomb Cree Nation Chief Arlen Dumas. “I believe (this deal is) a testament to the hard work that we’ve done. It shows that we have done our due diligence,” said Dumas. Dumas said he is one of at least 15 members of Missinippi and is open to more signing on. “This vital infrastructure should be owned by everyone that lives in the north,” he said. Dumas said he believes, however, that the federal gov-

ernment has pulled its support from the deal. “There was a commitment by the federal government to incentivize and support freight and a grain subsidy to go to Churchill all of a sudden we have these same representatives just telling us point blank that ‘No, we don’t want to work with you now,’” said Dumas. The chief said he learned the feds were no longer supporting the deal last Thursday. In an email, however, the oﬃce of Federal Economic Development Minister Navdeep Bains said his government has been “thoroughly engaged with local communities.”“We’ve also been very clear about the requirements needed of any proposal going forward, including strong community support and a costed business plan,” the statement added. –CB Report

Ports & Shipping

port everglades contractor closes $44M loan amid expansion WASHINGTON

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company tied to West Palm Beach-based Ranger Construction Industries Inc. just scored a $44 million loan for a terminal amid one of the port’s most expensive expansion projects. Property records show Port Everglades Terminal Land LLC secured the financing from BB&T Bank. Ranger is an arm of the family-owned contracting company West Virginia-based Vecellio & Grogan. Vecellio’s previous experience includes building the Port of Palm Beach terminal in 2004, according to its website. The mortgage covers the land at 1200 Southeast 32nd Street, on Eller Drive and on Southeast 32nd Street in Dania Beach, including Vecenergy’s new fuel terminal. Two weeks ago, Port Everglades was granted approval by the Broward County Commission to begin a $437.5 million expansion. That

project will nearly triple its existing deepwater turn-around area, and install crane rail infrastructure for new Super Post-Panamax cranes. More speciSically, it will add 1,500 feet to the port’s turn-around area that will allow for Sive new cargo berths and space for larger cargo ships. Moss/Kiewit, a joint venture of Moss & Associates and Kiewit Infrastructure South Co. has signed on as the managing general con-

tractor. Separately, last year, a nearby 11-story parking garage with about 645 spaces and 1,400 square feet of ground Sloor commercial space was approved by the Hollywood Planning and Development Board to serve travelers taking cruises and Slights. Last year, the port handled more than 1 million 20-foot cargo container units. Vecellio Group could not immediately be reached for comment.

Wednesday June 14, 2017

Spanish ports blocked by industrial strike ort workers in Spain will go on strike for three days this week, which expect to cause serious congestion and large waiting times. The port workers are protesting against the reform of operations aimed at liberalizing hiring practices in a heavily-unionized sector. The strike action is set for next Monday, Wednesday and Friday. The protests will seriously disturb the shipping lines and country’s trade, expecting to increase the lead time of the containers. Many container lines already announced their customers for skipping smaller Spanish ports this week in case to prevent any delays and going out of schedule due to the congestion and strike actions. Around 60% of the Spanish trade (imports and exports) pass through its ports, and prolonged industrial action could be painful for the country’s automobile industry and chemical sector, and ruin fruit and vegetable cargoes. The port workers in Spain already announced several strikes, putting under pressure the shipping companies and exporters, but later cancelled them after getting a preliminary agreement with authorities. –CB Report

genoa’s port slated for enlargement T

WASHINGTON

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he Italian government is set to finance the construction of the Port of Genoa’s new seawall, a project that will cost about €1 billion overall, according to Infrastructure Minister Graziano Delrio. The enlargement is necessary to allow easy access for big modern container ships into Italy’s main port and ensure that the country has a harbor at the same level of those in Northern Europe. In the meantime, China’s interest for the port system in the surrounding region of Liguria is becoming more concrete, Delrio said. “All the goods operators want to get as close as possible to their destination: so the Chinese, aside from historic Venice, are looking for another mooring place that allows them to quickly reach Southern Europe,” he said.

“It is clear that the Ligurian ports are at the center of their interest: we talked about them when we visited the Chinese government with President Sergio Mattarella, we talked about them several times, also I did personally, and it seems to me that this interest is becoming more concrete.” During a high level meeting on logistics in Northwestern Italy that took place in Genoa, Delrio met the regional governors of Ligura, Piedmont and Lombardy: Giovanni Toti, Sergio Chiamparino and Roberto Maroni. Since last year when the first edition of the gathering was held, the presidents have formed a steering committee for logistical infrastructure in the Northwest, the industrial heart of Italy. The three governors signed a document with which they express the “common will to contribute” to the Ferrobonus 2017-2019 incen-

tive scheme, which is in a final phase of approval, “to strengthen the use of railways between the Ligurian ports and the Piedmont and Lombardy hinterland,” said Delrio. The minister signed a protocol of intent with Toti and regional port authorities aimed at the development of the Ligurian ports. This document expresses intent to earmark resources for the new seawall of Genoa, proposing it among the national projects which are eligible for Sinancing “within the EUChina connectivity platform.”“When the project is ready, the seawall of Genoa will be Sinanced,” said Delrio. “We have the availability of the Cassa depositi e prestiti (CDP) to build an ad hoc fund for Sinancing the port works: a fund for the ports because they are central in our view. Therefore, we are ready to get going straightway and widen the Sirst opening of the seawall in the

Sampierdarena zone, and then construct the rest. We know that this work is strategic for the competitiveness of Genoa, and just as there will not be uncertainty around the connection for the third railway crossing, there must not be uncertainty when we identify a strategic infrastructure project for the future of our country. The moment we decide, the country has to move forward.” For the new seawall, with a cost estimated at €1 billion, port authorities in the Western Ligurian sea have already earmarked €10 million in the forecast budget, for the planning. Delrio then clariSied that the work done with CDP “is nearing conclusion.” He added that the port fund “wants to put together public and private Sinancing and give a constant support to port infrastructure works for the coming years. We are in an extremely advanced phase,” he said.

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Number of filers surges by 7,235 to 1,173,787 in a week ISLAMABAD: The Federal Board of Revenue (FBR) received another 7,235 income tax returns during week ending, 2017. According to weekly Active Taxpayers List (ATL), the number of return filers has increased to 1,173,787 during the week as compared with 1,166,552 of previous week. The new filers submitted their tax returns in order to avoid higher rate of withholding tax. The FBR has proposed tough measures in the budget 2017/2018 for non-filers of income tax returns to compel them in discharging their liabilities.

Wednesday, June 14, 2017

CUSTOMS BULLETIN

customs preventive foils bid to smuggle huge quantity of heroin at karachi airport KARACHI MuBeeN huSSAIN

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team of Customs Preventive has foiled a bid to smuggle a huge quantity of heroin from Jinnah International Airport (JIAP). Sources informed Customs Today, that the huge quantity of heroin worth millions of rupees was being smuggled to the foreign country. The ofSicers have lodged a case against the suspects involved in the heinous crime. The ofSicer of the Customs Preventive have called news conference today (Friday) to brief the media on the overall progress of the department as well as the raid conducted by the ofSicers at the Jinnah International Airport last day. Collector Customs Preventive Saifuddin Junejo will be giving a detailed brieSing on the issue. It is pertinent to mention that the Customs Preventive was given special instruction by the higher authorities to beef up the surveillance and to carry strict checking of the passenger documents along with their language after the recent smuggling incident in which huge quantity was heroin was busted during a raid at the planes of the

Pakistan Air Lines (PIA). The Customs ofSicers have kept the details in the secret regarding

the seizure that held at Karachi Airport due to the press brieSing which will be held near old terminal.

The ofSicers of Customs Preventive are deputed in civil dress to monitor the activities of the sus-

pects as well as the suspicious activities to bust the culprits, added the source.

Sindh to collect additional rs26.5 billion taxes KARACHI

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he Sindh government has announced to collect Rs26.5 billion taxes in the next Siscal year (2017-18) starting from July 2017. Taking an easy route, the Sindh government will continue to generate more receipts from indirect taxes (like general sales tax on services, stamp duty, etc) com-

pared to direct taxes (like agriculture income tax, property tax, etc). Cumulatively, the provincial government, in its budget for FY18 announced on Monday, has targeted to generate Rs186 billion in taxes in the upcoming Siscal year. Again, the lion’s share will come from indirect taxes with collections of Rs173 billion, up 26.2% compared to the outgoing Siscal year FY17. Sales tax tops the list in the indirect tax category. The government has Sixed the sales tax revenue target at Rs100 billion for the Sindh Revenue Board in FY18. This target is 28.2% higher

than the target of Rs78 billion that the revenue board met in the outgoing Siscal year. Other than sales tax, the government also expects to collect Rs5 billion in provincial

excise duty, Rs10.5 billion in stamp duty and Rs7.55 billion in motor vehicle tax in FY18. The provincial government estimates collection of Rs12.87 billion in di-

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).

rect taxes, up 24% compared to the outgoing year. Property tax leads in the direct tax category. In the upcoming Siscal year, the government expects to collect Rs6.3 billion on this account. It also expects to receive Rs4.5 billion in capital value tax on immovable property, Rs650 million in land revenue and Rs425 million from tax on professions, trades and callings. Similar to its past shortcomings, the provincial government is targeting to collect only Rs1 billion this year in agriculture income tax compared to just Rs650 million in the outgoing year.