June 17 layout 1 by customs bulletin

Daily on www.customsbulletin.com

Find us on

pAkiStAn’S fiRSt inDeptH newSpApeR on cuStoMS

Daily

ABC Certified

Karachi, Sat June 17, 2017

ISLAMABAD

M ARSHAD

www.customsbulletin.com

ederal Minister for Commerce Engr. Khurram Dastgir Khan on Wednesday said that reimbursement of tax refunds to the exporters was the top priority of the government under the Prime Minister’s package for exporters. He further said that the Ministry of Commerce was also revising the Strategic Trade Policy Framework (STPF) for the beneSit of the business community. The STPF had been devised and implemented with a delay of one and half years and according to some eco-

nomic experts, the delayed implementation of the policy was the sole reason for the blockade of sales tax refunds as well as the declining exports. Therefore, the Commerce Minister, in a meeting with a delegation of Asian Development Bank (ADB) led by its senior advisor Warner Liepach here, said that the government was paying due attention to both the issues. Khurram Dastgir Khan said that commerce ministry is focused on reimbursement

Vol 2, Issue No. 157

Price Rs. 14.00

of tax refunds and payment of funds under PM package to boost exporter’s conSidence. He informed Warner Liepach that the commerce ministry is working on revising the Strategic Trade Policy Framework and will also very soon introduce Law on Geographical Indication. Minister for Commerce said that before the end of this year Ministry of Commerce will launch a campaign for the International Brand Marketing of Pakistan.

‘Perfect anti-smuggling exercise making legal business flourishing’

NA approves Federal Budget of FY201718 amounting to Rs4.75 trillion

Rs54.40 billion Gilgit-Baltistan budget 2017-18 presented

Customs Appraisement collects Rs63372m duty, taxes in eleven months

Customs Intelligence seizes 760 NDP mobile phones from Naran Road

Bona fide business is flourishing at the collectorate of Quetta due to perfection | See pAge 02 |

NAhasapprovedtheFederalBudgetfor financialyear2017-18Rs.4.75trillion:Dar | See pAge 03 |

G-B Haji Muhammad Akbar Taban today presented Rs54.40 billion | See pAge 04 |

Customs Appraisement has collected Rs63372m duty taxes | See pAge 14 |

DG Customs I&I seized 760 non-duty paid mobile phones worth Rs 15m last week | See pAge 16 |

www.customsbulletin.com

ASO seizes pad locks weighed 936 kg valued Rs212284 Saturday, June 17, 2017

National

HYDERABAD: The Anti-Smuggling Organization (ASO) Hyderabad has conﬁscated foreign origin 30 cartons weighed 936 kilograms of pad locks worth Rs212284 involving duty and taxes of Rs64153 during an action in the city in the last week of May 2017. Sources told Customs Today that Collector Hyderabad Akhlaq Ahmad Khattaq received a tip-oﬀ regarding some smuggling attempts. He constituted an ASO team under the supervision of Additional Collector Rehmatulah Vistro. The team, comprising Superintendent of Customs Preventive ASO Hyderabad Ghulam Shabir Phulpoto, Inspector Imdad Ali Abro, Abdul Majeed Barich, Ajaz Ali Mastoi, Asaduddin Mirza.

‘perfect anti-smuggling exercise making legal business flourishing’

KARACHI

QUETTA

cuStoMS BuLLetin RepoRt

tARiQ DeRYA

www.customsbulletin.com

he Customs’ new Directorate of IPR Enforcement, in its first case, has ordered confiscation of counterfeit trademark fabric imported by M/s Millat Fabrics. IPR Enforcement Director Amir Rasheed Shaikh asked the referring authority i.e. AppraisementWest to take consequential action with reference to the oﬀending goods. However, there would be no fine and penalty. M/s Millat Fabrics imported a consignment of polyester lining fabric from China. On physical examination, the consignment was found to contain polyester lining fabric including 1120kg fabric bearing trade mark ‘Samsonite’ printed on it. Additional Director Sadia Sheraz of Appraisement-West found it to be a case of potentially counterfeit trademark goods and forwarded the case to Directorate of IPR Enforcement. There was a minor diﬀerence in the artistic work in the manner and style of trademark ‘Samsonite’ producing a visually deceptive impression of the original trademark. The use of trademark Samsonite without consent of the right-holder M/s Samsonite IP Holdings, Luxembourg by M/s Millat Fabrics falls within the prohibitive scope of Section 15(C) of the Customs Act.

ona Side business is Slourishing at the collectorate of Quetta due to perfection in anti-smuggling exercise, new amendments in Customs Act-1969 and in the Budget 2017-18 which will be helpful for coping with the smuggling activities. The Collectorate of Quetta has not only achieved its allocated revenue target of Financial Year 2016-17 but it will also surpass the assigned revenue target in the days to come. The Anti-Smuggling Organization Quetta will perform its duties during the Eid holidays 24/7 at the check-posts located near the hometowns of the employees so that they can meet both responsibilities. During the public holidays, notorious people try to smuggle contraband goods whose activities will be checked properly. This was stated by Deputy Collector Preventive (Car Cell and AntiSmuggling Organization) Junaid Mahmood of the Model Customs Collectorate Quetta while giving an exclusive interview to Customs Today. He said the overall performance of the Anti-Smuggling Organization (ASO) is well only due to adoption of new techniques for conducting smuggling-free and bona Side business. The Car Cell has been facing problems in the past. For example, the cell had no safe place for parking

ipR enforcement orders confiscation of fabric in its first case

the impounded and NDP vehicles unless their cases are decided in the court. The cell has been parking the smuggled and NDP vehicles on the roadsides. Now the department has its own places to park impounded and smuggled vehicles. During the current Financial Year from July 2016 to June 2017, the Car Cell Quetta has impounded 571 vehicles valued Rs413.89million. Pre-

viously, the employees of the cell had been injured in attacks by smugglers and trafSickers but now they have safe and protected places to execute their responsibilities. The Deputy Collector Preventive, answering a query, said the Customs Preventive Quetta has been working independently and without any assistance from any other agency for the last three months. He added that it is a

fact that the ASO Quetta and other law and enforcement agencies seized huge contraband goods together but the recent amendment in Section 07 of the Customs Act -1969 has also helped increase the interceptions as the federal government has made the Highway Police and the Motorway Police bound to assist the Customs Anti-Smuggling (ASO) staff whenever they are required.

punjab increases taxes on purchase, sale of property

LAHORE

cuStoMS BuLLetin RepoRt www.customsbulletin.com

unjab Assembly passed the provincial budget 2017-18 through a majority vote while open discussion over the budget in the assembly will commence. During the session drafts for two bills vis-à-vis Destitute Children and Education Standard Development Authority were presented by Law Minister Rana Sanaullah in the

house which were later referred to the relevant standing committees. The session started over an hour and 20 minutes late under the acting speaker Sardar Shair Ali Gorchani. After the Sinance bill being passed the taxes, duties and fees related to Board of revenue were merged into Stamp Duty which will be issued through E-Stamping System. In addition to these other taxes and fees such as Capital Value Tax, Registration Fee too were added to the Stamp Act. In urban areas this

tax shall be Sive percent of the value of land, while that in the rural three percent will be received. The same would apply to any property gifted as well. However, in case the property is gifted to spouse, parents, children, grandparents or from one wife to another, this rate shall be three percent in the urban areas. The Sinance bill also ended the tax exemption over internet services. Internet bill over Rs 1500 per month shall be taxed at 19.5 percent under General Sales Tax. How-

ever, those using internet under Rs 1,500 per month shall be exempted from the tax. The tax over Construction Sector was reduced from 16 percent to Sive percent. However, schemes under 2106-2017 PSDP, Cantonment Board Civil Works, development programs under foreign funding and Federal Government PSDP shall be exempt from this tax. The stamp duty on document worth Rs 0.5 million will be Rs 500 while those in addition to that will be an additional Rs 1000. The Si-

nance bill maintained the exceptions for land types previously in place. According to the new Finance Bill, the Sinancial penalty for ‘Intrusion/ Obstruction of Government Business’ was raised from Rs 25,000 to Rs 100,000. It was also added that if any Sirm or business chose snot to register with the PRA, any of its licenses issued by any authority can be revoked by the Punjab Revenue Authority which can also prohibit any further licensing for the incumbent person or business.

www.customsbulletin.com

IHC settles case filed by M/s Wateen Telecom ISLAMABAD: The Islamabad High Court (IHC) has disposed of a case filed by M/s Wateen Telecom Limited challenging a recovery claim of outstanding tax made by field office of Federal Board of Revenue (FBR). The IHC bench comprising Justice Aamer Farooq disposed of the matter and barred the large taxpayers’ from taking coercive action against the appellant aiming at recovering any outstanding amount under the impugned show cause notice. The court also directed the respondent to hear appellant’s departmental appeal and submit compliance report within 60 days.

iHc directs fiA to complete report on grand Hayyat Hotel lease agreement

Saturday June 17, 2017

National

nA approves federal Budget of fY2017-18 amounting to Rs4.75tr

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

slamabad High Court (IHC) has Monday directed Federal Investigation Agency (FIA) to submit its report regarding mismanagement in lease agreement of land for multi stories building of Grand Hayyat Hotel until June 22. A divisional bench of IHC comprising Justice Aamer Farooq and Mian Gul Hassan Aurengzaib heard the case filed by four former oﬃcers of Capital Development Authority (CDA) including Kamran Lashari, Kamran Qureshi, Asad Munir and Shaukat Ali against their any possible arrest by FIA. The court directed to issue summons to all accused allegedly involve in lease agreement and also directed FIA to complete its report until June 22.

nDp toyota vehicle valued Rs1.00m impounded HYDERABAD

ASLAM AnJuM QuReSHi www.customsbulletin.com

he Model Customs Collectorate, ASO, Customs Preventive Hyderabad, has impounded a non-dutypaid vehicle Toyota Hilux Surf worth Rs1.00million involving duty & taxes of Rs1.4million during a raid. The ASO team, following the guidelines of Collector MCC Hyderabad Akhlaq Ahmad Khattaq under the supervision of Additional Collector Rehmatulah Vistro, conducted a raid to impound the said vehicle. The ASO team, comprising Customs Preventive Superintendent Ghulam Shabbir Phulpoto, Inspector Imdad Ali Abro, Inspector Abdul Majeed Barich, Inspector Ajaz Ali Mastoi, Inspector Asaduddin Mirza, Inspector Mushtaq Ali Lakho, Sepoys Ghulam Sarwar, Muhammad Ayoub, Abid Ali, Abdul Razaq, Mahram Thebo, Driver Ajaz, Nisar Ahemdani, Sher Akbar and others, intercepted the said smuggled Toyota Hilux surf.

ISLAMABAD

M fAiZAn

www.customsbulletin.com

ational Assembly has approved the Federal Budget for Sinancial year 2017-18 Rs. 4.75 trillion in the absence of members of the opposition. This is the Sirst time that a Sinance bill has been passed in Pakistan without the inclusion of the opposition in the assembly. Since the opposition was not present during the proceedings, all cut motions against the bill were dropped. Federal government has removed the sales tax on the import of petrol diesel engine 3 to 36 horse power and reduce the customs duty from 20 to 3 percent on the parts of peter engine. Federal government has also further reduce the tax rate on Sive export oriented sectors from 2 to 1 percent in the light of the proposals of FPCCI and APTMA. On Senate recommendations the batteries whole sellers and dealers will be exempted from 0.2 and 0.5 percent withholding tax. Sales tax rate has been reduced from 17 to 5 percent on LNG for feed gas. On the import of permanent magnets for DC fans custom duty has been abolished. Concluding the discussion session on the budget, Finance Minister Ishaq Dar noted that out of the 276 recommendations made by the Senate, 75 had been partially or wholly approved while 137 recommendations had been sent to the

planning commission. The Sinance minister exclaimed that some elements had suggested that the budget held no worth without a date set for the NFC award. “The government wishes the early completion of the NFC award… however, the award is being delayed by the provinces,” he alleged. Dar asserted that the impression of increased foreign loans was incorrect and that in the coming year the government would continue to battle terrorism.

on Senate recommendations the batteries whole sellers and dealers will be exempted from 0.2 and 0.5 percent withholding tax. Sales tax rate has been reduced from 17 to 5 percent on Lng for feed gas. on the import of permanent magnets for Dc fans custom duty has been abolished

excise Dept recovered Rs50.5b in fY 2016-17

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

xcise and Taxation Department has collected Rs50,560.663 million during current Siscal year from June 2016 to May 2017, as compared to Rs43,324.898 millions recovered during last Sinancial year. This was revealed by Sindh Minister for Excise and Taxation & Narcotics Control Mukesh Kumar Chawla while presiding over a de-

partmental meeting here at his ofSice. Excise and Taxation & Narcotics Control Secretary Abdul Haleem Shaikh and ET&NC Director General Shoaib Ahmed Siddiqui also attended the meeting. Shoaib, while brieSing the meeting, said that in term of motor vehicle tax Rs5493.808 million were recovered while Rs4681.527 million were collected during last year ie 2016-17. He said that Rs35749.033 million have been recovered in term of infrastructure Cess, Rs149.375

million in term of cotton fee, Rs319.702 millions in term of professional tax and Rs1778 millions in term of property tax while the remaining amount was recovered in term of other taxes. The minister, expressing his satisfaction over recovery of the taxes, appreciated the performance of the ofSicers and ofSicials. However, he directed the ofSicers to speed up their tax collections for professional and property taxes and achieve the targets before June 30.

“We have allotted Rs90 billion for Sighting extremism,” Dar stated. The National Assemble approved Rs3.45tr for ministries and divisions during the session. This included the approval of Rs928.58bn for the ministry of defence, Rs107.02bn for the interior ministry, Rs11.5bn for the aviation division, Rs14.8bn for the establishment division, Rs51.16bn for the cabinet division and Rs5.11bn for the defence production division.

fiA arrests man in fraud case he Federal Investigation Agency (FIA) has arrested a man in a fraud case. According to an FIA oﬃcial, accused Mushtaq Ahmad of Kot Momin took Rs300,000 from a citizen, Nazar Hussain, for sending him to Malaysia. The accused neither sent Nazar Hussain abroad nor returned his money. The FIA team arrested the accused and locked up him in People’s Colony Police Station.

www.customsbulletin.com

Rs1,233m allocated for 197 uplift schemes in DG Khan DERA GHAZI KHAN: The Punjab government has earmarked Rs 1,233 million for 197 development schemes in DG Khan division. Among these schemes, 153 are new ones while work is in progress on 44 uplift schemes in various parts of the division, said an official source. The source said that 153 schemes are related to water supply and sewerage in areas including Fort Munro, Taunsa, Kot Chhutta, Rojhan, Rajanpur, Faisal Colony, Shah Jamal Colony, Tatarwala, Ahsanpur, Kot Addu, Chowk Azam, Kot Sultan and some others.

Saturday June 17, 2017

Business

Rs54.40b gB budget 2017-18 presented GILGIT

cuStoMS BuLLetin RepoRt www.customsbulletin.com

inister Finance GilgitBaltistan Haji Muhammad Akbar Taban today presented Rs54.40 billion provincial budget for Siscal year 2017-18 carrying 10 percent increase in salaries of the employees of he provincial government employees and pensioners. The new Siscal budget includes Rs 28,26,21,69000 for non development expenditures and Rs 18, 30 billion for Annual Development Program, and allocation for food subsidies is Rs. 7.8450 billion. The Public Sector Development

Mango farmers, exporters MULTAN

cuStoMS BuLLetin RepoRt

Program has outlay of Rs 3.30 billion including schemes for education, health, law and order, irrigation and agriculture, communication, infrastructure, water and energy sectors. For Chief Minister sustainable program a sum of Rs.2, 710000000 have been allocated.

pakistan’s trade deficit widens by around $30b in 11-month

www.customsbulletin.com

he standards introduced by European Union (EU) countries were being achieved successfully by mango farmers and exporters by virtue of government’s support that not only increased demand of Pakistani mango but also resulted in enhanced exports earnings. Agriculture Department spokesman said in a statement on Wednesday that fruit fly aﬀects the quality of fruit, however, Punjab government had initiated a project to tackle fruit fly problem through non-traditional techniques.

A sum of Rs 1,530000000 has been allocated for education. Funds have been suggested for construction of new buildings of schools, provision of basic necessary facilities to them including drinking water, walls and provision of furniture while the up gradation of schools

was among the program. Health sector will receive a sum for over Rs 1,800000000 for its development. Under the new health budget, new health centers will be established while already hospitals and basic health centers will receive machinery, medicines and other necessary facilities. A sum of over Rs 43, 42, 00,000 has been allocated for livestock and agriculture sector. For local government and rural development Rs.45000000 has been allocated. For the sectors of information, services, administration and cabinet a sum of Rs.4, 27, 00 was allocated. For power sector a sum of Rs.3,530000000 have been allocated. For law and justice a sum of Rs.14,500000 have been allocated. For excise and taxation a sum of Rs.12, 6800000 have been allocated.

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

akistan’s trade deSicit has sharply widened by around $30 billion or 42.12 percent during Sirst eleven months of current Siscal year as compared with deSicit of $21.1 billion in the corresponding months of the last Siscal year. The widening of trade deSicit was due to signiSicant increase in imports by 20.6 percent to $48.53 billion during July – May 2016/2017 as compared with $40.25 billion in

the same period of the last Siscal year. On the other hand exports came down by 3.13 percent to $18.54 billion during the period under review as against $19.14 billion in the same period of the last year. Analysts said that the high imports were due to CPEC related imports including capital goods and power generating machinery. The exports during May 2017 fell by 11 percent to $1.627 billion as compared with $1.827 billion in the same month of the last year. The imports, however, increased by 27.88 percent in May 2017 to $5.01 billion as against $3.98

billion. The trade deSicit in May 2017 widened by 60.79 percent. Meanwhile, The government has set aside Rs 2737.27 million for 13 ongoing and new development projects of Industries and Production Division under Public Sector Development Programme (PSDP), 2017-18. According to the PSDP documents, Rs 211.736 million would be spent on the establishment of Bostan Industrial Estate (Phase-1) Balochistan, while Rs 122.625 million has been earmarked for establishment of infrastructure in Quetta industrial and Trading Estate (Phase II).

excise launching SMS service for motor registration LAHORE

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Excise, Taxation and Narcotics Control Department is launching another SMS service for data of motor vehicle registration. The then ET&NCD director general, Naseem Sadiq, launched SMS code 9966 which was being managed by the Pakistan Revenue Automation Limited (PRAL). However, it was discontinued by the end of 2014; the same year of its launch. PRAL also stopped updating data of new purchased vehicles, token taxes, issuances of number plates and transfers. The helpline, despite being scrapped, was still providing data that was misleading not only to the motor vehicle owners, but also the police. The data has only been updated last updated till late 2014, but did not provide any subsequent updates. Resultantly, any transaction made after 2015 was not shown in the reply text. This confused police in determining the ownership, token tax and number plate records. According to the ET&NCD, several letters have been written to PRAL to discontinue the SMS service to end the confusion. The department received complaints from motor vehicle users who had to face massive inconvenience due to the misleading data.

gov’t releases Rs681.316b for various development projects ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he federal government has released Rs 681.316 billion for different social sector developmental projects under Public Sector Development Programme (PSDP) 2016-17 as against the total allocations of Rs 800 billion. According to latest data released by ministry of planning, the govern-

ment released Rs 22.573 billion for Pakistan Atomic Energy Commission (PAEC) against its total allocation of Rs 28.625 billion. The government also released Rs 193.67 billion for infrastructure and development projects under National Highway Authority (NHA) against its total allocation of Rs 192 billion. In addition, Rs 129.78 billion were released for Water and Power Development Authority and other power sector projects as against the total al-

location of Rs 130.867 billion for current Siscal year to overcome the shortage of energy in the country. Meanwhile, a sum of Rs 24.493 billion was released for Water and Power Division (Water sector) projects for building the mega water reservoirs as compared to total allocation of Rs 31.716 billion. As many as Rs 20.279 billion have been released for Higher Education Commission as compared to its total allocation of Rs 21.486 billion. Similarly an amount of Rs 7.824 billion has been

provided to Housing and Works Division against the allocations of Rs 7.824 billion while an amount of Rs 5.993 billion has been released for Finance Division out of total Rs 10.009 billion. The government released Rs 11.146 billion for Interior Division against its total allocation of Rs 11.146 billion while an amount of Rs 33.321 billion was released for National Health Services, Regulations and Coordination Division out of its total allocations of Rs 29.548 billion. The government re-

leased Rs 61.296 billion for Special Federal Development Programme for Temporary Displaced Persons (TDPs) and Security Enhancement under current year’s development programme for the rehabilitations of TDPs. The government also released Rs 15.651 billion for Azad Jammu and Kashmir (Block and other projects), Rs 10.8 billion for Gilgit-Baltistan (Block and Other Projects) and Rs 21.545 billion for SAFRON/FATA (Block and Other projects).

www.customsbulletin.com

ISLAMABAD M fAiZAn www.customsbulletin.com

eputy Director Directorate General of Customs Intelligence and Investigation, Federal Board of Revenue Rawalpindi, Afzal Watto, has said the Rawalpindi Directorate has showed tremendous performance under the guidance of Director General Shukat Ali and Director Irfan-ur-Rehman during the whole current Sinancial year, especially in May 2017, for which credit goes to all the ofSicers and staff of the directorate. Auction of seized goods, including vehicles, is expected to be held in the last week of the current month. He stated this while giving an exclusive interview to Customs Today. During the current Sinancial year (1st of July 2016 to 12th of June 2017), the Directorate Customs I&I Rawalpindi has conSiscated miscellaneous goods including non-duty-paid smuggled vehicles, cloths, electronics and other items CIF value worth Rs549million and lodged 88 Nos. of cases in which Rs303.341million of duty and taxes. During the same period in the last Sinancial Year (1st of July 2015 to 30th of June 2016), the directorate has conSiscated miscellaneous goods CIF value priced Rs354million and lodged 88 cases and duty and tax evasion of Rs184.144million. He further said there is 55 percent increase in the performance as compared to last Sinancial year. During May 2017, Rawalpindi Directorate has impounded miscellaneous goods

Saturday, June 17, 2017

valued Rs145. 296million in seven cases and duty and tax evasion involved is Rs37.120million. During the same month in last Sinancial year, Rawalpindi directorate had seized worth Rs7.855million of miscellaneous goods in Sive cases and Rs9.330million of duty and tax evasion. This has been the best performance in the history of Rawalpindi Directorate, he claimed. In July 2016, we seized miscellaneous goods valued Rs11.824million in three cases of duty and tax of Rs9.00million as compared to the same period of last FY worth Rs16.565million

t he las od in t i r e p 5 to me ly 201 the sa u g J n f i r o Du r (1st orate direct ial yea e h t , ) financ 6 ods ne 201 ous go u e J n f a o l l 30th misce and illion scated fi m 4 n 5 o c 3 s has iced R nd tax lue pr duty a d n a cif va ases illion d 88 c .144m 4 8 lodge 1 s n of R evasio

in eight cases. In August 2016, RD conSiscated miscellaneous goods worth Rs6.796million in two cases as compared to last FY in the same month Rs7.252million in Sive cases, he added. During September 2016, the RD impounded goods valued Rs11.213million in six cases as compared to last FY. In the same month, Rs11.334 in five cases and in October 2016, RD seized goods worth Rs6.573million in three cases as compared to last FY in the same period Rs4.160million in cases cases. During November 2016, RD confiscated goods worth Rs40.220million in 12 cases as compared to last FY Rs.3.783 in seven cases and in December 2016 RD impounded goods valued Rs75.030million in 10 cases as compared to last FY in the same period Rs43.740million in six cases. He further stated that during January 2017, RD seized goods worth Rs74.480million in 23 cases as compared to last FY in the same period Rs88.618million in eight cases and in February 2017 RD seized goods valued Rs89.499million in eight cases as compared to last FY in the same period Rs28.685million in 11 cases. He said in March 2017, RD confiscated goods worth Rs28.526million in five cases as compared to last FY in the same period Rs2.912 in four cases. In April 2017, RD seized goods valued Rs20.228million in nine cases while last FY we had impounded goods worth Rs11.641million in four cases.

www.customsbulletin.com

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

problems with corporate taxes

ccording to financial experts, the ratio of aggregate corporate taxes in Pakistan has reached 40 percent with imposition of super tax entering its third year. The rate is the twice the average tax in Asia as bonus shares as well as retained reserves are taxed as penalty rather than success. It appears the imposition of super tax on bonus shares and reserves are taken as preemptive measure to discourage investment schemes in the country. The Federal Board of Revenue issued draft rules two years ago to implement super tax for rehabilitation of temporary displaced persons. The banking companies are liable to pay tax at the rate of four percent of income and all other taxpayers at 3 percent of income if their income exceeds Rs500 million. According to experts, the imposition of super tax has weighed down banking sector profit by 23 percent or to Rs 40 billion during the fiscal year 2015-16. Despite carrying 52 percent of the tax burden, the GDP ratio of the manufacturing sector in has declined to 13 percent which resulted in increase in unemployment, decrease in exports and the country faced shortage of funds to invest in social sector development programmes. The local industry has been under pressure for the last one decade due to various imprudent policies, including wholesale singing of free trade agreements with various countries, unrealistic tax regime on import of common goods, energy crisis, under-invoicing and tax evasion. Inconsistent import policies have spurred smuggling activities in border areas with Iran and through Afghan Transit Trade. If the government wants to improve trade and industrial activities, it will have to curtail ratio and number of taxes and will have to enhance tax net. The local industrial entrepreneurs should be encourage to modernize their industrial units and diversify their products. It will, therefore, be plausible if the government encourages capital formation, creates an environment of competiveness in the industrial sector and pushes for public participation in listed companies. The government should set up free trade zones, export processing zones and industrial areas to attract foreign investment not only from China, but also European countries.

Rising trade deficit T

LAHORE

DR AftAB AfZAL

www.customstoday.com

he government has signed dozens of trade agreements with various friendly and unfriendly countries, but exports are nose-diving and imports are sharply increasing, spilling the trade deficit up to 42 percent year-on-year during the last 11 months of the current fiscal year. The country showed the worst economic performance during the previous Pakistan Peopleâ&#x20AC;&#x2122;s Party government, but strangely enough the exports touched $25 billion mark during its rule. However, the trade deficit was recorded at $20.435 billion when the Pakistan Muslim

League-Nawaz took over the rein of the country in 2013. Ironically, the party came to power on the slogan of business, business and business but failed to touch the figure of $25 billion. Instead, exports have been sliding down and imports are rising, pushing the foreign exchange reserves to the dangerous zone. Reports suggest the deficit crossed $3.4 billion mark just in the month of May, which are nearly 61 percent of the same period last year. According to experts, the country could face balance of payment problem as the industrial surplus is out of question and the rate of falling exports has not be arrested. The volume of import is rising despite tough decisions made by the government to min-

imize the import bill. The data revealed by the Pakistan Bureau of Statistics from July 2016 to May 2017 shows the overall imports crossed $48.5 billion mark year-on-year. The imports, which remained $44.9 billion in 2012-13,will cross $53 billion during outgoing fiscal year. Strangely enough, the exports are falling despite guarantee of incessant power supply to the industrial sector. The government also introduced concessional electricity tariff for the export-oriented industries. However, exports fell to $18.5 billion from $19.1 billion in one year and there is no hope the government will be able to meet its export target of $35 billion set for 2018. Earlier, the govern-

ment had announced a subsidy package of Rs180 billion for textile, clothing, sports, surgical, leather and carpet sectors. Under the three year Strategic Trade Policy launched in 2015, the Ministry of Commerce has notified five cash support schemes to improve product design, encourage diversification of products and facilitate branding and certification. There is a need to export value added goods rather than food items and it is yet to be seen how the government manages economic affairs in the given circumstances. Until the government earns foreign exchange by enhancing exports, the country will continue to face balance of payment problem.

www.customsbulletin.com

Petrobangla, Swiss co ink MoU on LNG supply SWITZERLAND: State-owned Petrobangla signed a memorandum of understanding (MoU) with Switzerlandbased private firm AOT Energy AG on Tuesday for procurement and supply of liquefied natural gas (LNG) to meet the country’s mounting energy demand. Under the MoU both the parties will initiate negotiations to settle the quantity and the price of LNG. “AOT Energy intends to supply LNG under term deal with Petrobangla,” said Aziz Ahmed, local representative of the Swiss company. He was optimistic about inking a term sheet over import of LNG within the next six years. As a trading firm, AOT Energy will be able to provide LNG to Petrobangla from different global sources, like Australia, Indonesia and Qatar etc, he added. “This is just a MoU. Final terms and conditions will be settled following negotiations,” said Petrobangla’s LNG cell chief Md Quamruzzaman.

Dubai chamber teams up with Souq.com DUBAI

cuStoMS BuLLetin RepoRt

Saturday June 17, 2017

Chambers

icci asks govt to resolve Qatar, gulf countries standoﬀ

www.customsbulletin.com

ubai Chamber members will get training, access to promotions and exclusive benefits on Souq.com following the signing of a Memorandum of Understanding (MoU) between the chamber and the e-tailer. Dubai Chamber said the MoU is intended to ease long-term cooperation between the two, and expand chamber members’access to regional ecommerce. Hamad Bu Amim, President and CEO of Dubai Chamber, said,“We expect e-commerce activity to account for 10 per cent of Dubai’s total retail trade within the next few years.“Rapid growth within this sector presents a lot of potential which can be maximised through strategic initiatives and partnerships that help businesses keep pace with the region’s fast-changing

e-commerce.”Under the terms of the agreement, Dubai Chamber members will gain free access to Souq.com’s“Fulfilled by SOUQ”services for three months and dedicated‘on boarding’training sessions. Some of these services also include special placement in search, customer service, and access to promotions. Souq.com will promote Dubai Chamber’s“Trusted Member”label scheme through existing seller programmes on the B2C platform, and collaborate with the chamber on upcoming seminars and training programmes. Global e-commerce is projected to reach $4.3 trillion by 2025, accounting for 19 per cent of total retail sales, according to analysis by Dubai Chamber based on recent studies conducted by Payfort and Business Monitor International. GCC e-commerce is expected to reach $41.5 billion by 2020, and the UAE is expected to lead the region with a share of around 55 per cent.

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

slamabad Chamber of Commerce and Industry (ICCI) has called upon the government to play mediatory role in ending the current standoff between Qatar and Gulf countries. President ICCI Khalid Iqbal Malik said the whole Muslim Umma was disturbed over the brewing tensions in the Gulf region involving the Kingdom of Saudi Arabia and Qatar, a statement said. He said Pakistan has good relations with Qatar, Saudi Arabia, UAE and other gulf countries and it should play positive role to end the current standoff between Qatar and other gulf countries through dialogue. He said millions of Pakistanis were working in Saudi Arabia, UAE, Qatar and other gulf countries, but due to drop in oil market, gulf countries were already facing macro-economic instability. He was afraid that if the current tense situation continued, it would further weaken the economies of these countries and more people would lose jobs in the gulf market.

He said Pakistan should approach the Gulf countries with the request to show restraint and resolve their differences through negotiations. He stressed it was high time that government of Pakistan should take concrete steps towards forging unity amongst the Muslim

Ummah. He was hopeful that if sincere efforts were made by Pakistan and other Muslim countries, they would help in resolving the diplomatic crisis engulfing the Middle East in a peaceful manner and without causing much damage to their economies. Meanwhile, The

wilshire group – uMt sign Mou LAHORE

iran, india to step up ict cooperation ranian and Indian ICT ministers have agreed to provide proper conditions for further expansion of bilateral cooperation on information and communication technology. Iranian ICT Minister Mahmoud Vaezi who is in Geneva for a specialized meeting of the International Telecommunication Union, held talks with his Indian counterpart Manoj Sinha on Thursday. During the meeting, the two sides noted the many commonalities and potential and actual capacities for ICT cooperation between the two countries, and reached an agreement to expand cooperation in various fields based on existing MoUs signed between them. The two ministers also conferred on developing cooperation in technology, exchange of experience for rural communications, activating agreements, forming a joint working group and cooperation in international organizations. –CB Report

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ilshire Group of Companies and The School of Business & Economics – University of Management & Technology Monday signed a Memorandum of Understanding (MOU) here at the Lahore Chamber of Commerce & Industry to establish long term strategic partnership between the two institutions. The MOU was signed by F. Robert Wheeler III, Dean School of Business and Economics and Dr. Abdul Salam Babar, Director HR Wilshire Group of Companies signed the MOU in the presence of LCCI Senior Vice President and Chairman Wilshire Group of Companies Amjad Ali Jawa. Chairman UMT Hassan Sohaib Murad, CEO Wilshire Group of Companies

Islamabad Chamber of Commerce and Industry (ICCI) has signed an agreement of cooperation with China Council for the promotion of international trade, Tianjin SubCouncil to promote business linkages between the private sectors of Pakistan and China.

Ghazanfar Ali Jawa and Director UMT Dr. Aly Raza were also present on the occasion. According to the Memorandum of Understanding, both organizations would establish the long term strategic partnership. Speaking on the occasion, the LCCI Senior Vice President Amjad Ali Jawa said that MOU will bridge the gap between industry and academia

where Wilshire will join hands with UMT for combined industry centric research projects. It will also help towards capacity building of Wilshire employees through higher education in Executive MBA and MS Programs from the platform of UMT. He said that strong liaison between industry and academia is the key to economic challenges.

www.customsbulletin.com

Customs superintendent Qamar retires ISLAMABAD: Qamar-ul-Hasnain, 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 superintendent at Directorate of Intelligence & Investigation-FBR (Customs Anti-Smuggling), Regional Office, Karachi, stood retired from the government service on June 7, 2017.

Saturday June 17, 2017

Islamabad chief (opS) Shafiullah’s performance allowance restored

Suleman takes charge peshawar customs i&i Addl Director (opS)

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

erformance allowance of Shafiullah Khan Niazi, a BS-19 officer of Inland Revenue Service, has been restored. The performance allowance of the officer, presently posted as Chief (OPS) (Litigation Management) at Federal Board of Revenue (HQ), Islamabad, has been restored with effect from May 11, 2017. Meanwhile, Three 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.

fareena relinquishes charge as Dg of enforcement areena Mazhar, a BS-21 officer of Inland Revenue Service, has relinquished charge as Director General, Enforcement. The officer, in pursuance of Establishment Division Notification No. 1/50/2016-E-4, dated 09.06.2017, relinquished the charge of the post of Director General, Enforcement at Federal Board of Revenue (HQ), Islamabad with effect from June 12, 2017. Fareena had taken the charge of the abovesaid post after relinquishing the charge of the post of Member, Federal Board of Revenue (HQ), Islamabad on March 15, 2017. She had assumed the charge as Member on February 27, 2017. –CB Report

uleman Yaqub Khan, a Pakistan Customs Service of BS-18, has assumed the charge as Additional Director (OPS), Directorate of Intelligence & Investigation, Peshawar. The ofSicer, pursuing the Board’s NotiSication No. 1437-CII/2017 dated 08.05.2017, relinquished the charge of the post of Deputy Collector, Model Customs Collectorate, Peshawar with effect from May 17, 2017. Meanwhile, Naseer Khan, a Pakistan Customs Service ofSicer of BS-17, is going to retire from the government service on attaining the age of superannuation. The ofSicer, presently posted as Superintendent at Model Customs Collectorate, Peshawar.

fBR recovers Rs10m by seizing nDp cigarettes T

LAHORE

M HAYAt

www.customsbulletin.com

he Federal Board of Revenue (FBR) has recovered Rs 10 million by seizing non-duty paid cigarettes from different shops during the last 15 days of the current month. Sources told Customs Today that the FBR teams took actions against sellers of non duty paid cigarettes, including Yasir Karyana Store, Aminpur Bangla, Nadeem Traders, Manarwa Centre, Ilyas Traders, and Javed Trader located in Factory Area and Sabzi Mandi. Sources said that the FBR teams already expedited their efforts to recover outstanding amounts from defaulters. Sources said that FBR authorities directed relevant teams to use all available resources to recover outstanding tax revenue. Sources said that due to these measures there is marginable increase being witnessed in the revenue collection, while on the other hand due to

strict measures sale of non duty

paid cigarettes is being gradu-

ally decreased day by day.

www.customsbulletin.com

SHC adjourns hearing of fabric cases till 22nd KARACHI: Sindh High Court has adjourned hearing of a number of petitions including the petition of Messers Horizon International which imported three consignments of grey fabric till June 22 as Pakistan Customs sought time. The hearing was adjourned by a SHC appellate bench comprising Justice Irfan Saadat Khan and Justice Arshad Hussain Khan. Hyder Shaikh advocate, counsel for Horizon International today pointed out that the respondent Custom oﬃcials have failed to comply with the orders of the court for shifting the same to the CPF bonded ware house. He said that while Custom oﬃcials are saying that the consignment would be auctioned, then it became their responsibility to shift the consignments.

SHc seeks remarks from tax dept on petition filed by M/s Jaﬀer Brothers KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Sindh High Court (SHC) has issued a notice to the tax authorities and deputy attorney general, directing them to file their respective para wise comments on a constitutional petition filed by M/s Jaﬀer Brother Limited against a tax recovery notice issued by assistant commissioner Inland Revenue E&C Taxpayers Unit LTU. A two-member bench headed by Justice Aqeel Ahmed Abbasi restrained the tax department from recovering the disputed amount from the petitioner till the next date of hearing. Earlier, hte counsel for the petitioner stated that he is a commercial importer and principally engaged in lawful trading and indenting of the household products. He submitted that the petitioner has always

fulfilled liabilities and paying duty and taxes regularly. According to the importer, however, assistant commissioner Inland Revenue E&C Taxpayers Unit LTU has passed an assessment order under the Sales tax Act 1990 for the period of Jan 2009 to December 2011 and directed the petitioner to deposit the alleged demand within 30 days, being aggrieved, importer filed an appeal along with stay application before concern appellate authority which is still pending for disposal. He added that during pending of such appeal, it has apprehension from any coercive measures from tax authorities. Citing Commissioner Inland Revenue Appeals, Commissioner Inland Revenue E&C ZoneIV, Unit-III and Assistant Commissioner Inland Revenue E&C Taxpayers Unit LTU as respondents, petitioner pleaded the court may restrain the tax department from taking coercive measures till final decision of its appeal pending before Commissioner Inland Revenue Appeals.

Karachi

customs Appellate tribunal rejects appeal against ono in mis-declaration case

customs tribunal reserves judgment in 16 appeals by hardware importers KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

Special Customs Appellate Tribunal has reserved judgment in 16 identical appeals filed by importers of hardware items. The two-member Tribunal was comprised of Nadeem Qureshi (Member Judicial) and Member Technical Nazim Saleem. Shaikh Ghulamullah advocate appearing for the appellants submit-

KARACHI

M B RAnA

www.customsbulletin.com

he Customs Appellate Tribunal has upheld the Order-inOriginal (ONO) and rejected the appeal Siled by M/S Hadi Energy Solution, Multan, challenging impugned Order-in-Original over Siling mis-declaration and evasion of duty and taxes to the tune of Rs 2,352,540. A single bench of the tribunal comprising Syed Tanvir Ahmed, Member Technical-III Karachi, announced the judgment. The tribunal in its order said: “The Customs Department has rightly classiSied the emanated aluminum wire under heading 8544.1900 which is accessible @US$2.5/kg attracting 25 percent duty. The documents shows that all others importers have paid duty under this heading and at higher value of US$2.5/kg. Since the declaration under section 79 (1) in WeBOC system is voluntary and on self assessment basis, therefore, the importer has been found indulged in mis-declaration of description and tried to evade duty of Rs 2,352,540. I do not see any merit in the appeal. The Customs Department’s ONO is up-

Saturday June 17, 2017

held and the appeal is rejected on the merit of the case”. Earlier, the counsel for the applicant stated in its customs appeal that it has imported contain wire and Siled good declaration at the rate of US$0.75/kg, however, during the examination, customs authorities alleged that importer has misdeclared the description in terms of PCT Heading, the images showed that wire was actually enameled wire and classiSied under PCT Heading 8544.1900 25% customs

duty instead of 20%, customs department also alleged that the importer has deliberately mis-declared the description. Citing Additional Collector of Customs (Adjudication-I) and the Collector of Customs Customs Collectorate Appraisement West as respondents, applicant had pleaded the Tribunal may declare that act of the customs department is illegal, mala Side and arbitrary and also restrain them from taking any coercive measures against it.

ted that at the time of placement of order for import Valuation Ruling 697 of 2014 was in place which determined the customs value at a rate of $1.4 per kilogram but later before clearance the value was increased 250 times to US $ 3.11 per kilogram under Valuation Ruling 1075 of 2017 in respect of Knob and Handle Lock (Nonelectric) of China origin. He submitted that in the intervening period prices of raw material used in manufacturer of imported consignment items fell substantially and thus upward revision and 250pc enhancement in duty was uncalled for.

court directs to arrest suspects involved in nDp car case

KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ustoms Court Judge Syed Faiz Rasool Rashdi has directed the investigation ofSicer to complete investigations and arrest the unidentiSied suspects who are booked in a case of a non-duty paid Toyota Premio car case. During the hearing, investigation ofSicer submitted a FIR against unidentiSied suspects and informed the court that a team of the customs staff intercepted the vehicle bearing registration no AAH-747. He said that the suspects had evaded duty and taxes to the tune of Rs

3,137,736. He also informed the court that the suspects had dodged the customs team which waited for considerable time but no one turned-up to claim the vehicle. He added that during the detailed search of the abandoned car, no documents regarding the registration and import/procurement of the car was found. Therefore, the vehicle was taken into possession for veriSication and investigation. He said that during the examination, it was revealed that it has Chassis No:ZZT240-0140149, Model 2007 (as per seat belt), used in condition and the Forensic Test Report informed that no other number has

been deciphered under the present chassis serial ZZT240-0140149 and no record has been found in the system against the import of the vehicle. The FIR also stated that in light of all veriSication reports, it has been established that the vehicle was brought into the country other than speciSic route and Toyota Premio car, VVT 16 Valve is valued at Rs25,47,329/- and total duty/taxes involved around Rs3, 37,736/- 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. Meanwhile, Customs Court Judge Syed Faiz Rasool Rashdi

has sent a suspect, Asif Iqbal son of Kala Khan, to customs department on physical remand. The suspect was booked in a case of illegal removal of dutiable/ contraband goods, evading duty and taxes to the tune of Rs 48,28, 567. During the hearing, the investigation ofSicer informed the court that the suspect is involved in illegal removal of dutiable/ contraband goods i.e 15,900 kilograms (net fabric) in the garb of bed mattresses imported from UAE. He added that prosecution needs his physical remand for further investigation and arrest of absconders; therefore, the court may send him back to the customs department.

www.customsbulletin.com

FIA detains human-traﬃcker Saturday June 17, 2017

National peshawar Dry port receives Rs276.27m more taxes than last year’s

FAISALABAD: Federal Investigation Agency (FIA) team has conducted a raid in Sargodha and arrested one Mushtaq Ahmad for fraudulently getting money from people. According to the FIA officials, the accused got Rs 300,000 from one Nazar Hussain in 2016 over the pretext of sending him abroad. Later on, neither he sent Nazar abroad nor returned his money.

faisalabad ASo impounds nDp toyota Hilux Surf valued Rs500000

PESHAWAR

cuStoMS BuLLetin RepoRt www.customsbulletin.com

FAISALABAD

nAeeM SHeikH

www.customsbulletin.com

he Customs Dry Port Peshawar collected Rs276.27million more all duty taxes during May than collection of the same period of Financial Year 2015-16. The dry port generated Rs777.09million all duty taxes during May of Financial Year 2016-17 whereas it did Rs500.82million during corresponding Financial Year 2015-16. According to Peshawar Dry Port, it received Rs238.48million Customs Duty (CD) during May 16-17 while it did Rs316.43million Sales Tax (ST) and earned Rs122.18million Additional Income Tax (AIT) during May 16-17. The Customs Dry Port Peshawar got Rs500.82million All Duty Taxes during May of Financial Year 2015-16. During the month of April 2015-16, the Peshawar Dry Port collected Rs207.58million CD whereas it did Rs213.40million ST and the dry port received Rs79.84million AIT.

nAB arrests four accused for illegal gains of Rs65m he National Accountability Bureau (NAB) arrested four accused in a case of illegal occupation of state land of the irrigation department. According to a handout issued here on Wednesday, the NAB Multan initiated a case against illegal occupants of state land of the Taunsa Barrage (irrigation department) and the accused, including Fida Hussain, Khalilur Rehman, Fiaz Hussain and Ijaz Hussain of Kot Addu, had encroached Pond area of the Taunsa Barrage and were cultivating the land since 2012. After verifying,the accused illegally earned Rs 65 million who have been arrested from Kot Addu and they will be produced before the Accountability Court on June 8 for physical custody for further inquiry. –CB Report

he Model Customs Collectorate, Anti-Smuggling Organization (ASO) Faisalabad, has seized a non-duty-paid Toyota Hilux Surf worth Rs500000 involving customs duty and taxes of Rs1.3million. Customs ofSicials told Customs Today that following a tip-off received through Collector Muhammad Sadiq, the ASO team raided an adjoining area of Millat Chowk, Sheikhupura Road, Faisalabad, and intercepted a Hilux Surf with registration No: BF-4360 Modelled 1997. The person on driving seat tried to smash the check-point but remained failed. During the checking, it was revealed that the vehicle was brought into country without payment of customs duty and taxes.

Therefore ASO team impounded the vehicle under section 2(S) read with SRO 566(1)2005 section 16, 18, 168, of the Customs Act-1969 and Section

3 of Sales Tax Act-1990, Section 148 of Income Tax Ordinance 2001 read with Section 3 (1) 3 of Import & Export Control Act-1950, punishable un-

der Section 156(1)90 of the Customs Act-1969 read with SRO 499(I)/2009 dated 13.06.2009 after completion of all the legal formalities.

customs tribunal rejects appeal filed by M/s cress pak international T

LAHORE

SAJiD nAwAZ

www.customsbulletin.com

he Customs Appellate Tribunal has rejected an appeal filed by the M/s Cress Pak International against the Collector of Customs (Appeals), Additional Collector of Customs (Appraisement) and others. The appellant had imported the consignment of dark blue tinted floated glass from China and filed the WeBoc GD LAPRHC-12464. During the course of examination, it was found that the thickness of goods on invoice was mis-declared and violation of Section 32 of the Customs Act1969 was committed which is punishable under Section 156(I) of Customs Act-1969. The adjudicating authority has gone through the facts of the case

and heard both sides. On the basis of facts, the charges were levelled on the respondent and the same showed willingness to pay

differential amount of taxes and duties. The authority also passed the Order-In-Original to release the goods to its lawful owner on

the payment of taxes and duties of Rs445500. Being aggrieved from the order, the appellant challenged the order before the learned collector of customs (Appeals) who waived the penalty of Rs25000 and ordered the payment of taxes and duties. The appellant filed the case with the customs appellate tribunal on the grounds that the impugned order was passed in a mechanical fashion and without considering the actual facts of the case. On the other side, the respondent denied all the allegations. After hearing the arguments from both sides, Imran Tariq, Member Technical Bench-II, passed the judgement with remarks that the appellant failed to produce evidence to support his arguments and the appeal is devoid of merit and not accepted.

www.customsbulletin.com

The Italian economy rebounds ROME: Italy’s national statistical service announced on Thursday that the economy surged at double the projected rate in the first quarter of 2017 by 0,4%. Growth figures verify a series of positive signs for the Italian economy, including an inflation rate at 1,9%, suggesting a rebound on demand in an economy that has been trapped in longsustained deflationary pressure. Italy’s economy is heavily indebted with a debt-to-GDP ratio at 131%, double-digit unemployment (11,1%), and a banking system tormented by a huge burden of non-performing loans. The news about the third largest economy in the Eurozone and the eighth biggest in the world was extremely welcome, with the Euro rising against all major currencies except the greenback.

customs arrests canadian for $4.8 million meth candles ustoms investigators have arrested a 36-year-old Canadian man this afternoon for 4.8 kilograms of methamphetamine found hidden inside a consignment of candles. On Tuesday (6 June 2017), Customs oﬃcers at the International Mail Centre intercepted a package of “home accessories” sent from Canada. Examination located approximately 4.8 kilograms of meth, worth a street value of up to $4.8 million. Investigators connected the consignment with the individual, and a search warrant was carried out in central Auckland this morning where the man was arrested. Customs Investigations Manager Bruce Berry says this is another example of good profiling and examination, and quick investigative action to catch the individual involved. “Criminal syndicates will keep trying to get drugs into our country in order to make profit, having complete disregard of the harm this substance causes New Zealanders, and Customs will continue to do everything to stop them,” he says. –CB Report

World Customs

customs seizes over 20 pounds of cocaine at pharr bridge

Shell canada budget drops by $500M after oil sands sale he president of Shell Canada says his capital budget will shrink by about half a billion dollars this year following the sale of most of its oil sands assets in a deal that closed last week. Michael Crothers says it will be about $1.5 billion this year, down from over $2 billion in 2016, but the Canadian branch remains an important part of Royal Dutch Shell’s global operations. He said in an interview the company’s sale of oil sands assets to Canadian Natural Resources (CNQ.TO) means it will now concentrate on its shale oil and gas properties in B.C. and Alberta, along with its refining and chemical businesses near Edmonton and its proposed West Coast LNG project. He says Shell Canada will add about 20,000 barrels of oil equivalent per day this year. –CB Report

PHARR

cuStoMS BuLLetin RepoRt www.customsbulletin.com

S Customs and Border Protection seized $201,280 worth of cocaine Monday at the Pharr-Reynosa International Bridge through vehicle and canine inspections. The OfSice of Field Operations within the CBP conducted a second inspection on a black 2010 Jeep Compass driven by a 19-year-old U.S. citizen from Alamo, according to a press release from CBP. A physical inspec-

tion of the vehicle, non-intrusive imaging inspection, and a canine team helped ofSicers Sind 11 packages of cocaine weighing 26.10 pounds. The narcotics and the vehicle were apprehended. The driver is in the custody of Homeland Security Investigations for further investigation. Meanwhile, US Customs and Border Protection has launched a new campaign aimed at informing the public of the “real dangers” of counterfeit goods. The Global Intellectual Property Centre (GIPC) at the US Chamber of Commerce has supported the campaign, The Truth Behind Counterfeits, which will run at six of the busiest US international airports.

According to a report from GIPC, counterfeiting worldwide has become a $461 billion-per-year problem. The 2016 report, Measuring the Magnitude of Global Counterfeiting, said that counterfeits had beaten previous estimates, doubling forecasts from 2008. Figures from the Organisation for Economic Co-operation and Development’s (OECD) 2008 study estimated that counterfeit goods accounted for 1.9 percent of world trade, or nearly $250 billion. Now, the OECD estimates that Sigure at 2.5 percent or $461 billion. Counterfeits now account for double the value of the 2014 proSits of the world’s top 10 companies combined.

Saturday June 17, 2017

italian police bust migrant traﬃcking ring in Sicily 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 “Scorpionfish” 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 five 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 traﬃckers he was worried the Italian authorities would stop him for “terrorism”, according to wiretapped conversations. –CB Report

Australian taxation oﬃce warns on tax time scammers CANBERRA

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Australian Taxation Office (ATO) has issued a public reminder to taxpayers to be aware that tax time is also a prime time for scammers and they should “stop and think” before parting with any personal details or money. Assistant Taxation Commissioner Kath Anderson said 48,084 scams were reported to

the ATO between July and October last year. “We have already seen a five-fold increase in scams from January to May this year and typically expect further increases during the tax time period,” Assistant Commissioner Anderson said. “Already this year, the ATO has registered over 17,067 scam reports,” she said. “Of these, 113 Australians handed over $1.5 million to fraudsters with about 2,500 providing some form of personal information, including tax

file numbers.” She said one victim had lost $900,000 to scammers over the course of several months, even borrowing money from family and friends. “The large number of people lodging their tax returns means scammers are particularly active, so it’s important to keep an eye out for anything that looks suspicious and to protect your private information,” ,” Assistant Commissioner Anderson said. She said people were generally good at

catching and reporting scams, but some scams were harder to spot than others. “Scammers locate genuine ATO numbers from our website and project these numbers in their caller ID in an attempt to legitimise their call a form of impersonation known as spoofing,” she said. “While we do make thousands of calls per week to the community, our outbound calls do not project numbers on caller ID. ‘If one appears, it’s most likely a scam.”

www.customsbulletin.com

PRA issues ﬁnal tax notices to 14 restaurants Saturday June 17, 2017

Lahore

LAHORE: The Punjab Revenue Authority (PRA) has launched an operation against all tax defaulters for recovery. According to PRA sources here on Thursday, the PRA has issued ﬁnal tax notices to 14 restaurants for the payment of taxes. Final tax notices have been issued to the restaurants situated in the DHA and areas from Shadbagh to Valencia. All of these restaurants have been given a deadline of one week to pay their taxes otherwise the PRA will initiate legal action against them including sealing the restaurants.

customs court seeks case of Rs 80 million tax evasion scam LAHORE

M iMRAn MeHAR

www.customsbulletin.com

he Special Federal Court of Customs Taxation and AntiSmuggling will hear the case of an accused Manzoor Ahmad who arrested in charges of tax evasion in next week as customs team has directed to submit his investigation challan maximum in next week. Sources told Customs Today that a suspect, Manzoor Ahmad was charged for tax evasion. Manzoor Ahmad is owner of has a textile factory located on Raiwind Road. He was allegedly involved in tax evasion by submitting fake returns and other statements before the FBR. On intelligence information Inland Revenue department registered a case against him under Pak-

tDAp for eﬀective liaison with exporters rade Development Authority of Pakistan (TDAP) is endeavouring to maintain an effective liaison with private and public stakeholders to promote Pakistani products at the global markets for enhancing overall country’s exports. TDAP Secretary Inam Ullah Khan Dharejo expressed these views in a meeting with Pakistan Carpet Manufacturers and Exporters Association (PCMEA) and Pakistan Meat Exporters Association (PMEA) here at TDAP office on Monday. Dharejo said that being a premier trade promotion organization of the country, TDAP was working to strengthen supply base including exporters’ capabilities and capacities through seminars, workshops and regular research to enable them to float their business consignments in accordance with global trade pattern. –CB Report

istan sales tax act and started investigations. After collecting proofs against the accused, Inland Revenue arrested him and produced him before the court of Customs judge. On request the customs court approved his physical remand of three days and handed over him to investigation team for further investigations. Customs Court granted him bail as well. Accused has allegedly evaded Rs 80 million in the wake of sales tax from 2013 to 2014 in one year. Meanwhile, Special federal court of customs taxation and anti-smuggling has sent three accused to jail on a judicial remand of 14 days in a case of smuggling of electronic items. Three accused Afzal Khan, Raheem Shah and Gulab Khan were arrested by the customs intelligence. Customs intelligence has also recovered huge quantity of smuggled electronic goods from their possession.

customs Appraisement collects Rs63372m taxes LAHORE

M HAYAt

www.customsbulletin.com

ollectorate of Customs Appraisement has collected Rs63372 million duty and taxes during eleven months of Sinancial year 2016-17 against the assigned target of Rs64938 million for the period under review. The Collectorate collected Rs23943 million under the head of customs duty (CD) during the Sirst 11 months till May while it collected Rs 33271 million sales tax (ST) during the period under review against the assigned target of Rs34960. Similarly the Collectorate collected Rs 6102 million withholding tax (WHT) during the 11 months against the assigned target of Rs6388 million while it collected Rs55 million federal excise duty (FED) from July 2016 to May 2017

customs Afu earns Rs 6.61 billion in eleven months of fY 2016-17

he Pakistan Customs Air Freight Unit at Allama Iqbal International Airport has recovered Rs 6.61 billion from 1st July 2016 to 31st of May 2017. Sources told Customs Today that Customs Air Freight Unit Lahore has recovered Rs 6.6 billion in the wake of taxes and duties on import of different goods from different countries to Lahore via air cargo. Earlier during the same period of the Siscal year of 2015-16, AFU Lahore has collected Rs5.92 billion

from 1st July to May end. Air Freight Unit has recovered Rs 69 million extra than the same period of the previous Siscal year of 2015-16. Sources said that recovery for the month of May is Rs 36 million less than the assigned target. Target for Air Freight Unit was standing at Rs 884.8 million. Air Freight Unit was failed to meet their given target. It is pertinent to mention here that in the same period of the Siscal year of 2015-16 AFU had collected Rs 542.6 million in month of May. –CB Report

Sinancial year 2016-17. Over all the Collectorate collected Rs 63372 million duty and taxes during the Sirst 11 months of Sinancial year 2016-17.

The sources told Customs Today Collector Appraisment Jamil Nasir has instructed all the staff from top to bottom to put maximum efforts to meet Sinancial year’s targets.

customs tribunal hears 8 important cases he Customs Appellate Tribunal Bench-II, comprising Judicial Member Omer Arshad Hakeem and Technical Member Imran Tariq, heard eight important cases on Wednesday and adjourned all of them until the next hearings. The Customs Appellate Tribunal heard the cases including Customs Sambrial versus Nawabzada Haider, Abdul Hashim versus Directorate of Intelligence and Investigation Lahore, Six Star Sports versus Customs Sialkot and Muhammad Younis versus Directorate of Intelligence and Investi-

gation Faisalabad. On Wednesday, Customs Appellate Tribunal heard the cases of Unison Traders versus Customs Lahore, Directorate of Intelligence and Investigation Faisalabad versus Muhammad Arif Abdullah, Gogha Shahbaz versus Directorate of Intelligence and Investigation Faisalabad and Directorate of Intelligence and Investigation Faisalabad versus Muhammad Akram. In all the cases, counsels for appellants and recipients appeared before the court and submitted their arguments. –CB Report

fto put of hearing in case of properitor Seco engineeging

LAHORE

SAJiD nAwAZ

www.customsbulletin.com

he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Siled by owner of M/s SECO Engineering against the Regional Tax OfSice-II (RTO-II), Lahore until the next date. According to the details, FTO con-

sultant Tariq Yousaf heard the case 507/LHR/IT(345)/1188/2014 FTO-LHR/0001188/14 of Qasir Shakeel, owner of M/s SECO Engineering, in which the counsel for the appellant argued that the RTO has not released the refund to the appellant of the last three years. He said that the RTO-II collected excessive tax from the company in three years. The company ap-

proached the RTO-II many times 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. The counsel appealed the FTO advisor to direct the RTO to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on

the taxpayers, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO argued that the appellant has not submitted all record in the ofSice on which basis it is claiming for refunds. If appellant provides accurate record, the RTO will issue the refunds if any after proper assessment, he added.

www.customsbulletin.com

Port Of Oakland import volume reaches two-year high WASHINGTON: Port of Oakland officials announced on Thursday that containerized import volume reached a two-year high in May. The port handled the equivalent of 82,440 20-foot import containers, which is up 1.4 percent from May of 2016, according to port officials. The volume was the highest since August of 2015, officials said. Imports make up 38 percent of the containers shipped through Oakland. Overall volume, which includes imports, exports and empty containers, grew 2.2 percent during the first five months of 2017 compared to the same period in 2016, port officials said.

port of Rotterdam now managing ‘big data’ with cargoSmart argoSmart Limited, a global shipment management software provider, recently announced that the Port of Rotterdam Authority is using its sailing schedule data to provide shippers with greater visibility to the available route options through its gateway. Lionel Louie, Chief Commercial Oﬃcer, CargoSmart Limited, told LM in an interview that he expects that carriers and terminals will make frequent schedule adjustments as the new services rollout.“Our sailing schedule data offers visibility to the latest schedules and route options,” he adds. “The data not only helps shippers and logistics service providers, it also helps ports see the ports that the alliance carriers are visiting to improve planning.” Rotterdam remains the largest port in

Europe in terms of container throughput, handling over 12.4 million twenty-foot equivalent units (TEUs) in 2016. The port’s new route planning tool, Navigate, integrates CargoSmart’s deep-sea vessel schedule data with barge, rail, and truck schedules for shippers to find and compare routes. Spokesmen said CargoSmart is helping the port to “digitize” its business and connect its “ecosystem” of shippers, transportation providers, and depots to improve the eﬃciencies of planning and shipping through the port. The Port of Rotterdam launched Navigate on May 10, 2017. The online tool incorporates the deep sea and short sea schedules of 550 ports worldwide as well as the rail and barge connections between Rotterdam and over 150 European inland terminals. –CB Report

Ports & Shipping

Qatar ports feel strain of political boycott WASHINGTON

cuStoMS BuLLetin RepoRt www.customsbulletin.com

ontainer trade in Qatar faces a substantial fallout from continued economic blockades imposed by the United Arab Emirates (UAE) and other Gulf Arab states, port experts have said. Neil Davidson, senior analyst, ports & terminals at Drewry, told Port Strategy that because most of Qatar’s port trafSic runs through the boycotting countries, there aren’t many viable alternatives for maritime trade routes and substitutions may take time to put in place. Mr Davidson said: “As far as containerised trade is concerned, the majority of Qatar’s trafSic moves either overland from Saudi ports or by feeder vessel from Gulf hubs, especially Jebel Ali. There are a couple of direct mainline container ship services to Qatar as well, but they also call at other ports (in the boycotting countries) and so are unlikely to be able to continue to serve Qatar as well. “The

only alternatives are either to run direct mainline services that only call at Qatar (unlikely to be viable) or to operate feeder vessels from hub ports in countries that are not part of the boycott. Ports in Oman seem the most likely to be examined for this possibility, as the likes of Sohar and Salalah have good facilities and an established role in the container trades in the region. “Geographically, Sohar is the closer option and so will likely be preferred over Salalah. Using Iran-

ian ports (Bandar Abbas in particular) is another possibility, as is Kuwaiti ones, although geographically Kuwait is a big diversion. Either way, dedicated feeder services would have to be set up to and from Qatar which may take time to effect.” Mr Davidson stated that in terms of the wider impact of the boycott, Jebel Ali Port, located on the southern outskirts of Dubai, UAE and operated by DP World, is “likely to be most affected by the boycott, as it is the main hub for Qatar”.

Saturday June 17, 2017

three ships take berth at port Qasim hree ships C.V CMA CGM Nerval, M.T Chemroad Fuji and M.V Lian Hua Song Carrying Containers, Palm oil and General Cargo were allotted berths at Qasim International Container Terminal, Liquid Cargo Terminal and Multi-Prpose Terminal (MW-2 respectively on Thursday, 8th June2017. Meanwhile five more ships San Felix, MSC Federca, Gaschem Antarctic, North Gas and Maritime Lirawith Containers, Chemicals, LPG and Palm oil also arrived at outer anchorage 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, CMA CGM Nerval, APL Coral, MSC Tomok, Lian Hua Song, Anthemis, Nord Destiny, Chemroad Fuji and Scirocco were occupied PQA berths to laod/oﬄoad Containers, General cargo, Soya bean Seeds, Canola seeds, Chemicals Palm oil and Diesel oil respectively during last 24 hours. A Cargo volume of 102,617 tonnes, comprising 78,582 tonnes import cargo and 24,035 tonnes export cargo inclusive of cotainerized cargo carried on 3,189 Containers TEUs) 1,924 imports TUEs & 1,265 TUEs exports) was handled at the Port. –CB Report

port of Baltimore planning for bigger ships WASHINGTON

cuStoMS BuLLetin RepoRt www.customsbulletin.com

upersized container ships traveling through the newly expanded Panama Canal have been arriving at the Helen Delich Bentley Port of Baltimore since last year and the Maryland Department of Transportation’s Maryland Port Administration (MDOT MPA) continues to make plans to handle the increased amounts of containerized cargo. Recently, the MDOT MPA purchased property at the Point Breeze Business Center, which is located right behind the Seagirt Marine Terminal. The 70 acres of MDOT MPA land will be used for additional cargo opportunities including containerized cargo. This represents the Sirst new land purchase for cargo opportunities by the MDOT MPA since

1987 when land was purchased at the FairSield Marine Terminal for autos. “Since welcoming our Sirst big container ship through the newly expanded Panama Canal last year, the Port of Baltimore has seen a signiSicant jump in its container business,” said Maryland Governor Larry Hogan. “With the purchase of additional land, the port will have more ability to handle the increased economic activity.” The MDOT MPA plans to utilize the additional land as a container storage location but can also use it for autos and roll on/roll off storage. About 1,650 direct jobs are expected to be generated due to this purchase. In 2016, the port handled a record 538,567 containers. Since July 2016, when the port welcomed its Sirst large container ship through the Panama Canal, containers are up seven percent. The Seagirt Marine Terminal, the Port of Baltimore’s primary con-

tainer facility operated under a public-private partnership with Ports America Chesapeake, includes 11 cranes, four of which are neopanamax, the largest cranes in the world. The Port of Baltimore is one of only four US east coast ports currently capable of handling some of the largest ships in the world. Combining both the public and private marine terminals, the Port of Baltimore saw 31.8 million tons of international cargo cross its docks last year which was valued at approximately $49.9 billion. Baltimore is ranked as the top port among all US ports for handling autos and light trucks, farm and construction machinery, imported gypsum, imported sugar, and imported aluminum. Overall Baltimore is ranked ninth for the total dollar value of cargo and 14th for cargo tonnage for all U.S. ports. Business at the Port of Baltimore generates about 13,650 direct jobs,

while about 127,600 jobs in Maryland are linked to port activities. The port is responsible for nearly $3 billion in personal wages and salary and more than $300 million in state and local tax revenues. Meanwhile, An analysis of JNPT data shows APM Terminals-operated Gateway Terminals India was the main driver of that increase, with volume up 22.2 percent to 344,229 TEU from 281,739 TEU in the same two months of 2016. April and May Sigures at JNPT’s other terminals were as follows: port-owned Jawaharlal Nehru Container Terminal, up 2.2 percent to 272,261 TEU from 266,388 TEU; DP World-operated Nhava Sheva International Container Terminal, down 16.6 percent to 111,711 TEU from 133,909 TEU; and at DP World’s new facility Nhava Sheva (India) Gateway Terminal, up 23.4 percent to 92,584 TEU from 75,003 TEU.

www.customsbulletin.com

Faisalabad Customs Intelligence seizes non-duty paid diesel FAISALABAD: The Customs Intelligence and Investigation team has seized 839,515 liters smuggled diesel oil worth Rs66,000,000 during a successful operation. Sources told Customs Today, that on special instructions of Director General Shaukat Ali the customs intelligence has started crackdown against smugglers. The director received information regarding the smuggling of oil. On this a team comprising Deputy Director Abdul Moueed, Syed Itrat Hussain Superintendent Saleem ullah, Muhammad Tahir formed check posts at main entry and exit point of the city and started the checking of vehicles.

Saturday, June 17, 2017

CUSTOMS BULLETIN

customs intelligence seizes 760 non duty paid mobile phones from naran Road ISLAMABAD cuStoMS BuLLetin RepoRt www.customsbulletin.com

irectorate General Customs Intelligence and Investigations seized 760 non-duty paid mobile phones worth Rs 15 million last week. According to sources, on the directions of Director General Customs Intelligence and Investigations Shaukat Ali, an operation was launched against smugglers after receiving information that mobile phone smuggling was increasing day by day through Sust border. Following the instructions from the director general, the ofSicials and staff increased vigilance on all routes of the Sust border. Director Customs Intelligence Rawalpindi Irfanur Rehman also received information that a huge quantity of foreign origin mobile phones would be smuggled from Sust border to Punjab through car. Meanwhile, the staff of the Customs Intelligence Haripur intercepted a Toyota Corolla car bearing registration No QF 399, at Naran Road. During the search of the vehicle, the staff recovered 760 nonduty paid mobile phones and arrested two suspects, Mohammad

Amin and Akbar Hussain, residents of Gilgit. Director General Shaukat Ali has lauded the action of the Rawalpindi directorate. Meanwhile, The special car cell of the Directorate General Customs

Intelligence & Investigations (I&I) has seized three non-duty paid smuggled vehicles worth Rs 20.178 million during the month of May 2017. Director General Customs I&I Shaukat Ali has

lauded the performance of the special car cell and instruct them to further improve their performance. According to monthly evaluation report of the special car cell headquarters, they seized three

non-duty paid used Toyota Corolla cars which, used Toyota Mark X car appraised CIF value over Rs 2.95 million while total duty and taxes of Rs.7.81 million were evaded on it.

nAB to set up anti-corruption training academy ISLAMABAD

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he National Accountability Bureau (NAB) will set up an training academy in the country in addition to conducting refresher courses for its ofSicers to build their capacity. These decisions were taken during a NAB directors general’s conference which concluded in Islamabad, read a statement re-

leased by the bureau. The conference, chaired by the NAB Chairman Qamar Zaman Chaudhry, concluded with the determination that the body would pursue corruption cases as per merit and with transparency. The conference thoroughly deliberated the performance of all regional bureaus and NAB headquarters on operations, prosecution and awareness and prevention divisions of NAB. It also reviewed measures taken by the incumbent management to further improve the performance and efSiciency of the anti-corruption watchdog. During the conference,

it was decided to establish a stateof-the-art anti-corruption training academy of the bureau, on the pattern of the National Anti-Corruption Academy of Malaysia. The academy would enhance the abilities of NAB’s ofSicers. Noting that training was a continuous and systematic process for any organisation and that they were according top priority to it, the NAB chief directed the concerned division to expedite the work on the academy. The director generals also decided to conduct refresher courses for prosecutors and investigation

ofSicers to build their capacity as per approved capacity building training plan for 2017. During the conference, NAB’s regional bureau’s performance was evaluated per the set criteria under the Partly Quantified Grading System (PQGS) on the Operational Efficiency Index. The results were deliberated to improve the performance of officers. Moreover, the Monitoring and Evaluation System (MES) – developed on Chaudhry’s directions – was discussed during the conference. It was decided that the MES would be implemented forthwith.

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).

While addressing the concluding session of the conference, Chaudhry said that NAB had been established to eradicate corruption and recover looted money from the corrupt. In this regard, he said that NAB had chalked out a comprehensive operational methodology for processing complaints, verifying them, inquiries and investigations. “NAB’s investigation officers strictly follow a code of conduct and have adopted a zero-tolerance policy on the basis of evidence as per law,” he said.