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Karachi, Fri June 1, 2018

MULTAN

IMRAN ALI

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he Customs Collectorate will purchase digital scanners for the examination of good from 8thJune. Multan Customs has decided to purchase digital image scanners to Qight against illicit trade in the jurisdiction. Digital scanners would be offered as an alternative to a physical personal search and Multan Customs will use passive

millimeter wave technology to detect concealed goods even they are hidden beneath clothing. The Customs Collectorate will install scanners at the Multan Dry Port, International Airport Multan and other strategic locations to detect concealed objects in the jurisdiction. Scanners will be Qixed at certain checkpoints to detect what kind of goods entered and transported in the jurisdiction. Multan Customs had requested to Federal Board of Revenue (FBR) for the purchase of digital scanners for Collec-

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torate and Federal Board of Revenue granted permission to Collectorate in this regard. Multan Customs will issue tender very soon for the purchase of digital scanners in this regard and called for its application. The Customs Collectorate is also planning to install digital scanner at the Customs House building for security purpose along with Airport, Dry Port. Scanners will assist Customs Collectorate in enforcement of Customs laws and monitoring will be enhanced after the installation of scanners.

FBR expresses reservations over Phase-II of Pak-China Free Trade Agreement

Customs Export recovers evaded amount from defaulter companies

FTO directs RTO to implement orders in tax refund case

Vital steps taken to restrict smuggling of dollars: ADC Airport Sanaulllah Abro

Peshawar I&I foils bid to smuggle auto parts worth Rs29m

FBR has expressed concerns over the Phase II of Pak-China FreeTrade Agreement | See pAge 02 |

Customs Export recovered an evaded amount of taxes and duties of Rs 12.40 m | See pAge 03 |

FTO has ordered RTO to implement order issued by appeal filed by Rana Traders | See pAge 04 |

ADC Airport Sanaulllah Abro has said that on the instructions of higher authorities | See pAge 09 |

Customs I&I FIU impounded two trailers full of second hand auto parts and scrape | See pAge 16 |

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FBR exempts Customs duty on import of electric vehicles Friday, June 1, 2018

ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn regulatory duty on over 250 tariff lines to 480 from 731 tariff lines on the recommendation of commerce ministry. The FBR withdrew the SRO 1035(I)/2017 issued on October 16, 2017 whereby the revenue body imposed regulatory duty on 731 tariff lines. FBR issued SRO 640(I)/2018 to impose the regulatory duty on 480 tariff lines.

Islamabad

fBR expresses reservations over phase-II of pak-china free trade Agreement

ISLAMABAD

cuStoMS BuLLetIN RepoRt

M fAIZAN

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ederal Board of Revenue has made payment of sales tax refunds amounting to Rs.1,17,084 million in 57,309 cases to the claimants during the last two years and current financial year. During 2015-16, payment of Rs. 50,660 million has been made in 38,217 sales tax refunds cases while 2016-17 payment of Rs 25,683 has been made in 4,724 sales tax refunds case. During 1st July 2017 to 31st March 2018, Rs 40,741 million has paid against the 14,368 sales tax refunds cases. The FBR has pointed that a substantial amount of refund is pending in deferred claims. FBR claims that almost 58 percent more sales tax refunds disbursed during July 2017 to March, 2018 as compared to refund disbursed during whole financial year 2016-17. It is pertinent to mention here that sales tax refunds are processed under the provision of Sales Tax Act, 1990 and Sales Tax Rules,2006. FBR has cleared that the FBR has automated system in place for processing of sales tax refunds. For low-risk claim by manufacturers –cum-exporters, FBR has introduced ERS (Expeditious Refund System) for refund claims which meet prescribed risk parameters.

ederal Board of Revenue (FBR) has expressed concerns over the Phase II of Pak-China Free Trade Agreement. According to the reservations of FBR, concessions under Phase ll would be to the detriment of Pakistan’s local industry are not justiQied. Commerce Minister Muhammad Pervaiz Malik has conveyed to the FBR that on their reservations Ministry of Commerce has held extensive consultations with the industry and the government stakeholders including Federal Board of Revenue which is part of the negotiation team for Phase-ll China Pak Free Trade Agreement. Based on the input of stakeholders, the already agreed liberalization level of 90%, in terms of tariff lines and trade value was strenuously renegotiated and brought down to 75% of tariff lines for both countries and 67 percent of trade value for Pakistan and around 90% for China, thereby getting an unprecedented non-reciprocity in favor of Pakistan. The expanded protected list of 25% of tariff lines is more than sufficient to accommodate the concerns of our industry. In order to give further comfort to the local manufacturers against any possible injury and to safe guard provi-

fBR clears 57,309 cases of St refund claims during last two years

sion under CPFTA has been revised in entirety, securing best terms ever extended by China to any FTA partner. Similarly, a clause to address Balance of Payments difficulties, which was amiss in the

Phase Il, has now been included. Ministry of Commerce has cleared that it is not correct that the Ministry of Commerce (MoC) has finalized the Phase-ll of China-Pakistan Free Trade Agreement

(CPFTA) the negotiations on Phase II of CPFTA are still on going. It is important to mention here, there was some news that revised free trade agreement with China entails the reduction of tariff lines.

Ihc orders to release goods seized by customs I&I I

ISLAMABAD

NAeeM uLLAh tARIQ www.customsbulletin.com

slamabad High Court (IHC) on ordered Directorate of Customs Intelligence and Investigation (I&I) to release goods of M/s Hunbal Tex Private Limited. Today during court proceedings both sides counsel submitted their arguments. After hearing the arguments Justice Shaukat Aziz Siddiqui directed Directorate of Customs In-

telligence and Investigation to release the goods after presentation of postdated cheques amounting to Rs1,48,93,315/- by petitioner M/s Hunbal Tex Private Limited. The court in its order stated that the cheques shall remain will Customs Intelligence and Investigation till the Qinal disposal of the instant writ petition. The court further adjourned the hearing of case after Eidul Fitr. Meanwhile, Islamabad High Court (IHC) dated in ofQice hearing of customs reference with directives to sub-

mit record and prepare for arguments. The case has been Qiled by Collectorate of Customs against M/s Al Haj Enterprises. IHC bench, comprising of Justice Shaukat Aziz and Justice Mohsin Akhtar, earlier issued notices in the case to respondent for taking part in the proceedings. Meanwhile, the bench dated in ofQice hearing on M/S Al Catel Lusent Pakistan Limited’s case. M/S Al Catel Lusent Pakistan Limited had Qiled the case challenging an announcement made by the Appellate Tribunal Inland Revenue.

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Rs521m dues: FBR asks CAA to suspend Shaheen Air’s local flight ops KARACHI: The Federal Board of Revenue (FBR) has asked the Civil Aviation Authority (CAA) to suspend local ﬂight operations of Shaheen Air for its failure to pay Federal Excise Duty (FED) amounting to millions of rupees. The FBR has also directed a bank to attach all the accounts of the company with immediate eﬀect. According to a letter sent to the CAA Director General, an amount of Rs 521.397 million is recoverable from the Shaheen Air International Limited under Federal Excise Act 2005 read with Federal Excise Rules 2005.

Shc seeks rejoinder on petition for restoration of NtN

Friday June 1, 2018

Karachi

customs export recovers evaded amount from defaulter companies

KARACHI

M.B RANA

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he Sindh High Court (SHC) directed petitioner to submit rejoinder on next date of hearing on a constitutional petition filed by M/s Usman Logistics Private Limited seeking restoration of its clearing agent license/NTN number user ID password blocked by customs oﬃcials due to allegedly involved in ISAF scam. A twomember bench, headed by Justice Munib Akhtar, heard the matter. During the hearing, counsel for the petitioner sought time to file rejoinder, therefore, court granted time and adjourned the matter. Earlier, counsel for the petitioner stated that the petitioner is being active as a clearing agent as well as customs private bonded carrier.

Dg Valuation rejects revision of VR No 760 & 768 KARACHI

M.B RANA

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ustoms Valuation Director General Surriya Butt rejected revision of Valuation Ruling No.760 and 768/2015 and upheld the values of IV cannula, IV catheter and another value of polyester yarns, determined vide the said valuation ruling. Source told Customs Today that M/s Advance Medical accessories and others importers approached Director General Customs Valuation praying that the Valuation Ruling No.760,768/2015 does not cover the present fluctuation of prices in international market which have been reduced to about half of the prices. The Director General noted that importers had failed to prove with conclusive evidence that the values worked out in the impugned ruling were on higher side.

KARACHI

wAQAR AhMeD ANSARI www.customsbulletin.com

he Customs Export recovered an evaded amount of taxes and duties of Rs 12.40 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Honey Ceramics & Export availed undue benefits and concessions after importing different consignments of Chinese and Italian made crockery items by misusing the SRO 569 through Qazi Basheer on January 26, 2017. Sources further said that the company was allegedly involved in the tax evasion of Rs 3.24 million. After detecting the tax evasion, the Customs Export served on it a final notice on 2nd May, 2018 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s Honey Ceramics & Export deposited the evaded amount in the official account of the Customs Export on 24th May in the favor of Custom Export. Another defaulter company named M/s M B S Traders also cleared Rs 5.28 million of taxes and duties. Sources said that M/s M B S Traders also availed undue bene-

fits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities served on it a final notice on 7th May, 2018. After receiving the notice, the management of M/s M B S Traders deposited the evaded amount of taxes into the official account. On other hand, very renowned marble exporter M/s Ishtiyaq Marble and Granite availed undue benefits and concessions af-

the customs export served on it a final notice on 7th May, 2018. After receiving the notice, the management of M/s M B S traders deposited the evaded amount of taxes into the official account

fBR imposes up to 25% duty on exports

KARACHI

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he Federal Board of Revenue (FBR) has imposed regulatory duty of up to 25 percent on export of various goods, including hides and skins and scrap of coppers. The country’s top revenue authority has also imposed up to 10 percent duty on imports of glass and other items, ofQicials said. Tax ofQicials said the FBR im-

posed regulatory duty on around 10 different tariff lines to discourage export of such goods. The duties will remain enforced till June 30, 2019. The FBR imposed 25 percent regulatory duty on export of waste and scrap of copper, including waste and scrap of primary cells, primary batteries and electric accumulators, spent primary cells, and electric parts of machinery or apparatus. The ofQicials said the FBR imposed 20 percent regulatory duty on export of raw and wet blue hides

and skins. The regulatory duty will increase the export value of such goods, they added. Another 15 percent duty has been imposed on export of molasses. Regulatory duty will be levied on export of high speed diesel and superior kerosene oil to Afghanistan, equivalent to the price differential claims (PDC) in rupees per liter as notiQied by the ministry of petroleum and natural resources, plus one percent of prevalent consumer price to cover for foreign exchange loss.

ter importing different consignments of polish machines, by misusing the SRO 558 through Appraiser Waseem Raja on Dec 27, 2017, The Customs Export authorities served on it a final notice on 4th May, 2018. After receiving the notice, the management of the M/s Ishtiyaq Marble and Granite deposited Rs3.88 million of taxes into the official account.

pak rupee strengthens in open market he Pakistani rupee gained value against the US dollar in open market and remained unchanged in interbank. As per the local money market, the dollar closed shedding 10 paisas in open market for buying at 118.50 and for selling at 119.05. The US currency closed unchanged in interbank for buying at 115.55 and for selling at 115.75.

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Customs Appellate Tribunal hears 18 cases Friday June 1, 2018

Lahore

LAHORE: The Customs Appellate Tribunal (single and double bench) heard 18 cases and adjourned all for different dates. The verdicts of two appeals were reserved to pass the final order. The division bench-II, comprising Muhammad Shabbir Gujjar, Member Judicial and Imran Tariq, Member Technical, heard 14 cases including two stay petitions of Directorate of Intelligence & Investigation Lahore versus Raees Umer, Abdul Bari versus Collector Customs Faisalabad. The same bench heard 12 regular cases including Muhammad Saddique versus Collector Customs Faisalabad, Rana Shukat Ali versus Directorate of Intelligence & Investigation Lahore, Reham Ullah Ilyas versus Directorate of Intelligence & Investigation Lahore.

customs Appellate fto directs Rto to implement tribunal rejects appeal in orders in tax refund case seized mobile phone case LAHORE

LAHORE

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ustoms Appellate Tribunal has rejected the appeal in seized mobile phones and accessories case. The same appeal was Qiled by Imran Nawaz, a resident of Lahore against Collector of Customs Preventive Lahore. Omer Arshed Hakeem, member judicial bench-II, heard the case and examined the record produced by the learned counsels of appellant and respondents as well. The same appeal is decided and judgment was passed with the remarks that appeal is miserably time barred and dismissed with no order at cost. As per brief history of case, the staff of Customs Anti-Smuggling Organization (ASO) seized some

fIA approves probes into bank frauds he Zonal Board meeting of the Federal Investigation Agency (FIA) has decided to start inquiries related to unlawful appointments in National Bank of Pakistan and other departments. In the meeting, several cases pending at the FIA Commercial Bank Circle, Karachi were discussed in detail. The board gave approval to conducting in-depth inquiries on complaints about unlawful appointments in National Bank of Pakistan, misappropriation of Rs2,000,000 from the account of a complainant, bank transactions through fake signatures, opening of fake bank accounts in the name of complainants and availing auto-finance facilities and unauthorised withdrawal of funds through ATM skimming. A spokesman for the FIA Sindh said that the meeting was attended by the additional director law, the additional director admin, the deputy director complaint, the acting deputy directory crime, oﬃcials of the FIA Commercial Bank Circle, Karachi, and the investigating oﬃcers. –CB Report

cartons lying on road near Shera Kot. During the examination of cartons a huge quantity of foreign-origin mobile phones and accessories. On demand, the said owner did not produce any documentary evidences in support of lawful possession or legal import of impugned goods. The goods were seized under section 168 (1) of Customs Act 1969. After show cause notice, adjudication proceeding were culminated and order in original was passed that charged mentioned in show cause notice is established against the respondent and penalty of Rs 2, 00, 000 also imposed on the importer. Being aggrieved with the order, appeal was Qiled before the Customs Appellate Tribunal on the grounds that impugned order is illegal and passed against facts and law in illegal exercise if jurisdiction and discretion and passed without hearing the appellant and same order is liable to set aside but respondent denied allegations.

SAJID NAwAZ

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ederal Tax Ombudsman (FTO) has ordered Regional Tax OfQice to implement order issued by FTO in appeal Qiled by M/s Rana Traders against the Regional Tax OfQice (RTO-II), Lahore. During the proceedings of case, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant since last two years. He said the RTO-II collected excessive taxes from the company during the last two years. The petitioner approached the ofQicials concerned several times for the release of refunds, but the RTO ofQicials failed to clear refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking interven-

tion in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said that delay in release of refunds put burden on taxpayers, adding that the RTO-II should make audit of the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO-II argued that the appellant has not

submitted all record to the ofQice for claiming refunds. If appellant provides the accurate record, the RTO-II will release refunds after a proper assessment, he added. After hearing the arguments from both sides, adviser for FTO Mian Munawar Ghafoor ordered to the Regional Tax OfQice –II to implement orders already issued by the same Tax Ombudsman ofQice.

customs preventive seizes two drones Appellate tribunal upholds oNo from passenger at Lahore airport ustoms Appellate Tribunal has seized under the section 168 of

he Customs Preventive team deputed at Allama Iqbal International Airport morning foiled an attempt to smuggle illegally imported drones from a passenger. Sources told Customs Today, Customs Preventive team intercepted a passenger Rashid Mehmood, son of Mohammad Hanif, who arrived from South Africa and recovered two costly remote drones with high definition cameras from his possession. Customs team confiscated the

drones and allowed him to go. Customs has started investigation in to the matter as well. On other hand , the Customs officials have confiscated as many as five alcohol bottles and number of mobile phones from passengers travelling via different flights at Allama Iqbal International Airport during different operations. Customs allowed all passengers to go after confiscation of alcohol bottles from their possession. –CB Report

upheld the Order-in-Original (ONO) in seized Hino Loader case filed by the Amjad Ali, a resident of Mandi Bahauddin against the Collector of Customs (Appeals) and others. As per brief histor of case, staff of Customs Anti Smuggling Origanization (ASO) was intercepted a Hino loader. The same vehicle were examinded in the presence of driver that produce belty and failed to produced documents proving lawfull import of said vehicle that was loaded with foriegn origin tyres and same were

Customs Act 1969. After show cause notice, adjudication proceeding were culminated and order in original was passed with remarks that show notice is established. Not satisQied with the order and was Qiled before the Collector Customs Appeals who accepted the appeal partially. Being aggrived with the order, appeal was Qiled before the Customs Appellate Tribunal that earlier both order passed without consideration of law and liable to set aside but respondent denied all allgations. –CB Report

customs submits record of confiscated mobiles to fIA

LAHORE

M IMRAN MehAR

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he Directorate of Customs Intelligence and Investigation submitted all record conQiscated mobiles to Federal Investigation Agency (FIA). As per details available to Customs Today Customs I & I has given all record of the con-

Qiscated mobile phones to FIA for investigation in to the matter. It is necessary to mention here that Lahore High Court in criminal case no 211642 of 2018 vide order dated 14 May 2018 has ordered to expeditiously finalize the inquiry against the Customs Intelligence alleged embezzlements. After orders by the Lahore High Court the Federal Investigation Agency (FIA) has

asked the Pakistan Customs to provide records of 1763 confiscated mobile phones allegedly sold to CSD as well as similar transactions for the previous 10 years record till May 24, 2018. The Federal Investigation Agency has written a letter to Federal Board of Revenue for the provision of all record of the confiscated mobiles phones. Federal Investigation Agency had asked the

to provide the record to the office of Assistant Director Muhammad Aman Ullah Khan, on May 24, 2018, positively in order to avoid a contempt of court proceeding. FIA was earlier investigating the 1763 confiscated mobile phones allegedly sold to CSD as the investigators at FIA are sure that the officers of Customs Intelligence are involved in this scam.

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Friday, June 1, 2018

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QUETTA

tARIQ DeRYA

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he Customs authorities, on the directive of Federal Tax Ombudsman (FTO), have started crackdown against illegal mini patrol pumps and the dealers of non-customs paid vehicles. The Customs authorities have seized thousands of liters of foreign-origin diesel and sealed various pumps in the provincial capital on Wednesday. Collector Ashraf Ali, while talking with Customs Today, said that MCC Quetta has seized thousands of liters of foreignorigin diesel at various parts of Quetta and sealed all those illegal petrol pumps. He added that this crackdown was started on directions of the FTO. He said that these petrol pumps used to provide poor quality diesel/petrol

of foreign origin (smuggled) which is disastrous not even for the masses but also for the vehicles, in which this fuel is used. Ashraf Ali said that he directed Additional Collector Zubair Shah and Deputy Collector Preventive Maqbool Baloch to take strict action against these unscrupulous elements. Team was headed by Deputy Collector Maqbool Baloch and consisting of Superintendents Preventive Maqsood Durrani and Niamat Kakar along with inspectors posted at anti-smuggling branches with all mobile squads and sepoys. Police was also present during the operation. The collector said that during the month of April, the FTO also asked the Quetta Customs to take strict act i o n

against the showrooms of non-customs paid vehicles, owners and illegal petrol pumps. Answering a question, Collector Ashraf Ali said that during April 2018, the FTO issued a notiQication no. 42-45/C03/OM/FTO/QTA/2018 and 46-49/C-04/OM/FTOQTA/2018 in which he asked the collector to take strict action against the showroom of non-customs paid (NDP) vehicles working under jurisdiction of Quetta Customs. He added that MCC Qinalized the policy to make Qirm action against the dealers involved in the selling and buying of NDP vehicles. The fresh crackdown is another episode against smugglers and owner of smuggled patrol pumps, he added.

the alized n fi e ainst that h f said ion ag t c a m Ashra ke fir selling to ma in the d e v policy l he vo lers in icles. t a h e e d v e p th of ND er uying anoth s i n and b w o rs and crackd uggle fresh m s t s n mps e agai trol pu a p d episod e ggl of smu owner

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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

economy not ready to take fresh start

he government ministers are posing rosy picture of the economy, as many indicators are showing signs of recovery, but the country still has to go a long way to achieve macroeconomic stability. The world financial institutions had projected six percent growth in the gross domestic product, but at least 5.6 percent is expected to be achieved during the current fiscal year. The overall economy of Pakistan is not performing well and is continuing to face internal and external challenges. The chaos on the political horizon has adversely affected the pace of development in the various sectors of the economy. The PML-N government under Nawaz Sharif had claimed it will end energy shortage and incessant power supply will be ensured to the industry, but load shedding has again started haunting the industrial sector. Exports have picked up to some extent and it is now up to the government to sustain its policies. There is modest increase in inflation while growing fiscal and current account deficits are appearing as challenges in the coming months. The prime minister has launched tax amnesty scheme to bring the non-filers into the tax net. However, there is no change in standard operating procedure and this could foil all the attempts to regularize the tax system. The policymakers take the issue of structural reforms as certain steps to enhance the realm of indirect taxes. Otherwise, it is difficult to avoid taxes if bank accounts of every individual are classified and closely monitored. The overall performance of the government remained subdued as it has failed to achieve any of the targets. After assuming the office, the former prime minister had declared that the only motto of his government would be business, business and business. Despite himself as a businessman, Sharif could not make any progress in any sector of the economy and even failed to streamline the administrative affairs. When administration is weak and incapable, no policy can achieve the desired results. The mandate of this government is going to end in a few months, but it is imperative for the mainstream political parties to do some homework before elections. The country needs reforms not only in the administration and management sectors, but also in the departments and provinces.

ADB report on economy T

LAHORE

cuStoMS BuLLetIN RepoRt www.customstoday.com

he Asian Development Bank, in its report the Asian Development Outlook 2018, cautions that the pace of growth of Pakistan’s economy may slow down to 5.1 percent as fallout of the growing external account challenges. The report projects the expected growth in the country’s gross domestic product at 5.6 percent on strong prospects of the large-scale manufacturing sector and recovery of the agriculture sector for the second year in a row. But difQiculties in the balance of payment problem could outweigh the improvements in supply-side. The bank praises the

ongoing infrastructure investments under the China Pakistan Economic Corridor which would strengthen economic growth, revive exports, improve power supply and contain inQlation despite twice increase in the oil prices. The bank also expects the Pakistani government to maintain a stronger growth trajectory through domestic and regional stability, competitiveness, revitalization of the public sector enterprises and completion of the infrastructure projects within the time frame. The rising current account deQicit could pose a challenge to the Qinancial sector, but improvement in export sector would ensure the brighter economic prospects. However, the

bank still suggest ‘greater exchange rate Qlexibility,’ which shows the bank is very particular about its own interests and has nothing to do with the improvement in the Pakistani economy. The government will have to introduce structural reforms in every sector of the economy and devise a new standard operating system to not only improve administrative affairs, but also enforce industrial compliance with quality control and better its position in the global ease of doing business index. The ofQicial rigmarole is the biggest enemy of Pakistan which is adding further woes in business, trade and investment. The government departments will have to work in

tandem and improve coordination among them. It appears the ofQicials are incapable of doing anything positive or they are not taking interests in the ofQicial business due to inherent lethargy. It is time the political leadership should also change its approach toward national affairs with a strong will to overhaul the entire government system. The largescale manufacturing sector has somewhat leverage and say in the ofQicialdom, but the small and cottage industry is soft target for certain government agencies. It is also important to note that the policymakers insist on exporting edibles such as wheat, rice, pulses and fruits which have more demand in Pakistan than abroad.

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M/s Karachi Corp approaches SHC for release of surety amount KARACHI: The Sindh High Court (SHC) directed customs department to file comments on a constitutional petition filed by M/s Karachi Corporation seeking release order of its surety amount submitted before the customs officials in dispute valuation. During the hearing, Khalid Rajpar advocate filed power on behalf of the customs department and seeks further time to file comments, therefore, court adjourned the matter and directed him to file comments on next date of hearing. Earlier, counsel for the petitioner stated in its petition that it imported five consignments of petroleum products and filed goods declaration at the rate of US$ 390 MT, however, officials of the customs department assessed at US$ 450 MT and after the intervention of the court consignments were released on submitting of the surety.

court acquits all suspects booked in all 7 cases of ISAf/NAto scam KARACHI

M.B RANA

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ustoms Court Judge Syed Faiz Rasool Rashdi on Wednesday announced all seven cases’ judgments and has acquitted more than 20 officers of Customs Collectorate Appraisement/customs officials/staff and clearing agents, who were booked in ISAF/ NATO containers scam for losses of billions of rupees to the national exchequer. During the hearing, the court announced all seven judgments against suspects namely S.M Mehmood Alam, S. Irfan Haider Rizvi, Jamshed Ali, Fareh Shoukat, Shoukat Hussain, Muhammad Yasin, Muhammad Irfan, Muhfooz Ali Khan, Wasif Shah, Sardar Amin Farooqui, Noor Akbar Mahar, Muhammad Abbas Khan, Javaid Jaffer, Syed Asim Raza, Muhammad Rafiq, Shahid Rauf, Syed Arshad Ali, A. Aziz Umrani, Saeed Babar, Munir Ahmed Brohi and others.

Friday June 1, 2018

National

Vital steps taken to restrict smuggling of dollars: ADc Airport Sanaulllah Abro A

KARACHI

MuBeeN huSSAIN

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dditional Collector Airport Sanaulllah Abro has said that on the instructions of higher authorities strict vigilance and tightened scrutiny is being carried to foil any attempt of smuggling as well as clearance through mis-declaration. Chairing a press conference, Additional Collector Airport Sanaulllah Abro briefed the electronic as well as print media regarding the overall performance of the Pakistan Customs on the Qirst-ever mis-declaration busted at the Immediate Clearance Group (ICG) of Pakistan Customs located at Air Freight Unit, Jinnah International Airport (JIAP) Karachi. The additional collector stated that three culprits Malik Najeeb Markhatiya, RaQique Siddique and Waseem Ahmed, involved in the heinous crime of mis-declaration, have been busted and an FIR has also been lodged against them to proceed the further investigations. Sanaulllah Abro said that M/s Paradise E-commerce Solutions, an e-commerce company, is engaged in fraudulent clearance of high du-

tiable goods in the garb of magazines/printed matter at Air Freight Unit and has cleared twenty seven consignments through using illegal ways that has caused millions of rupees loss to the country. He revealed that the said company was involved in massive fraud by clearing the high value dutiable goods in the garb of newspaper and magazines.

The record of other 25 shipments has also been retrieved involving an amount of duty and taxes so far estimated is more than Rs50 million; however, the Qinal amount will be determined on completion of inquiry in the case. Additional Collector Sanaulllah Abro also said that State Bank of Pakistan has issued strict regulation regarding the foreign currency and in

this regards, the department is closely watching the activities whereas has managed it to restrict the smuggling of dollars through concrete and vital steps. The additional collector also said that the department is working round-the-clock to apprehend the culprits as well as to restrict the corrupt practices and the recent recovery is the proof.

higher interest rates to lead enhanced revenue collection ISLAMABAD

According to the prosecution, during the investigation of the ISAF/ NATO containers scam being conducted by the probe committee, FBR, pursuant to the directions of the Supreme Court, initial investigation was conducted which transpired that Afghan Transit Trade consignments were got cleared by clearing agent as per notified procedure. The consignments were cleared from MCC Appraisement. During the investigation, it was revealed that all consignments were first cleared in the garb of Afghan Transit Trade and then were smuggled and disposed of in side Pakistan, causing colossal loss of revenue to the state exchequer.

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he hiked interest rates will lead to the enhanced revenue collection in the coming months. The private sector will yield higher revenue for the government and will reduce the rate of economic growth and inQlationary pressures. It will also increase the cost of borrowing, reduce disposable income and therefore limit the growth in consumer spending. This has the effect of reducing aggregate demand in the economy as higher interest rates increase the cost of government interest payments. This could lead to higher taxes in the future. The State Bank of Pakistan (SBP) increased its policy rate by 50 basis points to 6.5 per cent on Friday, saying that balance of risks to the

sustainability of growth has shifted while current account deficits and fiscal deficits have exceeded the earlier estimates. The central bank announced the Monetary Policy

Statement with details to justify second increase in the interest rate during the current fiscal year. In January, the key rate was raised by 25 basis points to 6pc after keeping

it steady for 20 months. However, a source at FBR told Customs Today that the government policymakers were following a growth-led strategy for higher revenue with higher interest rate therefore the private sector was expected to produce extra potential for growth with cheaper money ultimately revenue collection would improve. “Tax is source of income to government and also sometime used to promote or demote business depending on nature of business; however, increased interest rate leads enhanced revenue collection from corporate sector,” the source maintained. The source further elaborated that interest rates were hiked because economy was growing; therefore it just made the most sense that higher interest rates were more likely to lead to higher tax collection.

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FTO advisor seeks record to conclude tax refund case Friday June 1, 2018

National fBR amends SRo to allow import of steel products on reduced rate

LAHORE: The hearing of tax refund appeal entered the final phase as Federal Tax Ombudsman (FTO) sought record from the parties. On Friday, FTO heard an appeal filed by proprietor of M/s Irfan Leather Works, against Corporate Regional Tax Office (CRTO), the same appeal is postpone until the next date of hearing. FTO Advisor Muhammad Zahir ud din heard the case in which the counsel for the appellant argued that the CRTO had failed to release the tax refund of the last two years claimed by the company.

customs duty drawback cases should be resolved on priority basis

ISLAMABAD

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ISLAMABAD

M fAIZAN

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he Federal Board of Revenue (FBR) has amended an SRO to allow import of steel products as raw material on reduced rate of customs duty. The FBR issued SRO 641(I)/2018 by amending the notification SRO 565(I)/2006 dated June 05, 2006. Through SRO 565 the federal government exempted raw material, sub-components, components, sub-assemblies and assemblies as are not manufactured locally imported for the manufacturer of goods from so much of customs duty leviable under the First Schedule to the Customs Act, 1969. As per the latest SRO 641(I)/2018, the raw material under Cold Rolled Coils (CRC) or Galvanized Iron (GI) Coils have been allowed five percent customs duty with the conditions below: If imported by sales tax registered manufacturers of CRC or GI coils; Composite units also having pipe manufacturing facility shall not be allowed concessionary import of HRC; iii.

collector Adjudication summons owner of NDp goods ollector Customs Adjudication Seema Raza Bukhari has summoned owner of contraband goods and vehicle. According to notice issued by oﬃce of Collector Customs Adjudication Seema Raza Bukhari , the unknown owner of seized contraband goods and vehicle bearing registration no. LEA17-259 was intercepted by Customs Intelligence and Investigation Rawalpindi, are therefore required to appear before the Collector of Customs Adjudication, Customs oﬃce G-9/1 Islamabad on the next hearing fixed on dated 28.5.18 along with the documentary evidence in defense, if any. On the scheduled date and time failing, which the case will be decided on the basis of evidences available on the record.

here are 45,849 customs duty drawback (rebate) claims are still pending with Pakistan Customs during the last three years under the SRO 212 (1) /2009 dated 5th March and total amount involved is Rs1103.879 million. Minister of Finance has assured the Parliament on the written question of Member National Assembly Siraj Muhammad Khan that concerted efforts would be undertaken to further liquidate the pendency and enhance the payment of pending duty drawback claims under SRO 212(1) 2009. There are 12,540 customs duty drawback cases pending with only Karachi Customs and total amount involved

is Rs 391.697 million, while excluding Karachi Customs, 33,309 cases are pending amounting to Rs

712.182 million. It may be highlighted that all-out efforts have been made to liquidate the pen-

dency of duty drawback claims, especially the claims filed under the said SRO. This is evident that number of claims paid under SRO 212, during 1st July 2016 to 30th April 201, are 12,912 which involve an amount of Rs 488.35 million. However, in the corresponding period (i.e. 1st July 2017 to 30th April 2018) of this year, the total number of claims paid under the SRO 212(1) 2009 are 17,267, which involve an amount of Rs 589.13 million. There is visible growth in the number of the paid duty drawback claims up to 33.73 percent and the amounts involved up to 20.63 percent under the said SRO. He also instructed the Federal Board of Revenue (FBR) that the customs duty drawback cases pending with Karachi customs should be resolved on priority basis.

gwadar customs foils bid to smuggle mobile phones worth Rs12.58 million T

ISLAMABAD

tARIQ DeRYA

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he Customs Collectorate seized big quantity of electronics items and non-duty paid mobile phones worth Rs 12.58 million. Sources told Customs Today that Deputy Collector Gwadar received secret information that some smugglers are trying to smuggle big quantity of electronics items and mobile phones from Gwadar to Karachi. After receiving this information, he constituted a raiding team under the supervision of Customs Preventive Inspector Yousuf Yahya Khan and others. The team, during a search operation near Gwadar Highway, intercepted a truck bearing registration no GBS-8261. During a search, the team impounded 200 sets of electric stove , 2000 Juicer blenders, 100 piece of LED

TVs and 200 non duty paid mobile phones valued at Rs 12.58 million including truck were being used for

smuggling. The team seized all the smuggled items and arrested the truck driver. Sources told that cus-

toms team after registering a case of smuggling against the accused persons started investigations.

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Customs Preventive foils bid to smuggle heroin to Saudi Arabia KARACHI: Pakistan Custom Preventive has seized huge quantity of narcotics being smuggled to foreign country after a successfully raid at Jinnah International Airport (JIAP). The staff of the Pakistan Customs deputed at the departure of Jinnah International Airport (JIAP), after getting a tip-off, intercepted a passenger named Raees Khan and asked him for getting checked the luggage as well as travel documents. During the search, the officers of the Pakistan Customs found approximately five hundred and fifty grams of high quality heroin powder hidden in the secret places of the bags concealed in a box at the departure of the Jinnah International Airport (JIAP) Karachi.

customs Appellate tribunal orders to release vehicle LAHORE

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ustoms Appellate Tribunal accepted the appeal filed by Waqas Abbasi against Superintendent Customs (ASO) Lahore, Deputy Collector Customs (Adjudication) Lahore and Collector of Customs (Appeals) Lahore. Omer Arshed Hakeem, member judicial bench-II, heard and examined the record produced by the parties. Tribunal member passed the judgment with remarks that concerned appraisment staﬀ at CFS Multan Road Lahore shall appraise the value of replaced body parts and duties/taxes strictly in accordance with Section 25 of the Customs Act 1969. The appellant shall pay duties and taxes so ascertained along with redemption fine equaling 20 percent of value of impugned parts. As

per brief history of case, on core controversy, the staﬀ of Customs (ASO) was intercepted a Toyota Land Cruiser. On demand driver failed to produce documents showing lawful imports of vehicle the vehicle was referred to the Forensic Science Laboratory for chemical examination. After the verification it was founded the vehicle was smuggled and same were seized under the law. A show-cause notice was issued and order-in-original was passed the charged stands established and vehicle confiscated outrightly. Being aggrieved with the order, appeal filed before the collector Customs Appeals who upheld impugned order. Not satisfied with the order and filed appeal before the Customs Appellate Tribunal on the grounds that both earlier order passed beyond the law and order in original are liable to set aside but the respondent denied allegations.

National

customs preventive submits charge-sheet in 13,424 liters diesel smuggling case

Afu facing shortfall due to shifting of It import business ISLAMABAD

tARIQ DeRYA

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he Additional Collector Air Freight Unit Nisar Phularwan has said that AFU is facing shortfall during current month of May due to shifting of IT import business from AFU Islamabad to Lahore. Additional Collector Nisar Ahmad Phularwan that he had conducted many meeting with IT companies representatives like Mobilink, Zong and China Mobiles to come back to AFU Islamabad so the shortfall of revenue under head of customs duty could be controlled. Nisar told that he gave them assurance that Customs staﬀ of AFU Islamabad will provide them full cooperation so they can run their businesses through AFU Islamabad smoothly and timely. He told that due to shifting of Information Technology (IT) imports business from Islamabad to Lahore the AFU faced Rs.58 million shortfall under head of customs duty during first 10 days of May. It is necessary to mention here that the AFU was assigned Rs.99 million proportional revenue target for first10 days of May FY17-18 whereas the AFU fetched Rs.41 million under same head.

KARACHI

M B RANA

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ustoms Court Judge Syed Faiz Rasool Rashdi granted interim bail to suspect namely Guldar son of Khayal Manshah, driver of oil tanker, who was booked in a case of attempting to smuggle non-duty paid 13,424 liters diesel. During the hearing, counsel for the applicant appeared before the court and moved petition for bail and argued that his client is innocent and was falsely been implicated in this case, is ready to face trail, therefore, court may grant him bail till Qinal judgment in this case. After the hearing, court granted him bail against the surety of Rs100,000 and issued notices to the customs special prosecutor for next date of hearing. According to the charge-sheet, on a credible information, staff of ASO-/HQ, MCC Preventive posted at Super Highway Chowk was directed to mount strict surveillance at the spotted area. At about 7am, the customs team along with the back-up support of Ranger staff reached behind Dua/Shanwari Hotel, Qasba Colony, Karachi and found a Hino tanker bearing registration no- JP-

Friday June 1, 2018

8849, and Nissan Dumper truck bearing registration no TTA-938 as per information. He submitted that during the search, driver of the Hino truck was asked to produce lawful documents of said oil; however, he failed to produce any lawful documents regarding the said diesel. Therefore, after the legal formalities, he was arrested by the customs department. He further informed the court that during the investigation, facts and circumstances of the case, it is established

that accused namely Guldar had thus committed an offense in collusion with the others under section 2 (s), 156 (2), 157 (2) and 178 of Customs Act, 1969 punishable under clauses 8 & 89 of section 156 (1) ibid read with section 3 (1) Imports & Export Control Act, 1950. Investigation ofQicer argued that efforts are still continuing to locate and arrest the registered owners of the impounded vehicles, driver of Nissan Dumper truck and others, involved in the commission of offense.

pcA detects tax evasion of Rs13.76m by warsi Vehicles Decorators

KARACHI

wAQAR AhMeD ANSARI www.customsbulletin.com

he Directorate of Customs Post Clearance Audit (PCA) detected duties and tax evasion of Rs 13.76 million by M/s Warsi Vehicles Decorators, it is learnt here. Sources told Customs Today that M/s Warsi Vehicles Decorators imported a consignment of special quality car paints, wheel decorates steepness, and color polish and got them cleared from the Port Qasim, Karachi vide GDs on January 17, 2017 by paying customs duty very low at 12 percent after claiming the beneQit of the SRO 556/2007. However, the subject

items were correctly classiQiable under the PCT 6587.2504 attracting customs duty at 15 percent and income tax at 13 percent, thus, by way

of mis-declaration of classiQication, the company evaded/short-paid Rs 13.76 million. The goods were cleared by Appraiser Sabahat

Waraich. Sources said that the importer violated the provisions of Section 85 (9,5-A) of the Customs Act1969, Section 73 read with Section 25 of the Sales Tax Act-1990 and Section 21 of Income Tax Ordinance 2001 punishable under clauses (32) and 54 of Section 37(4) of the Customs Act-1969, Section 31 of the Sales Tax Act-1990 and Section 79 & 35 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

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World Customs

Iran decreasing trade balance gap with Russia

TEHRAN: The latest official trade statistics of Iran indicates that the Islamic Republic is decreasing the trade balance gap with Russia, as the country has increased its exports to Russia. The trade balance between the two countries has decreased from $1,350 million in the fiscal year to March 2017 to $457.5 million in the last fiscal year (ended March 2018), however, still in favor of Russia.

Friday June 1, 2018

Sberbank sells turkish unit to emirates NBD for 2.7b euros

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S Arabia’s safety-net spending wipes out new tax gains audi Arabia’s eﬀorts to ease the burden on ordinary citizens from its promised economic overhaul are taking a toll on its balance sheet. Saudi Arabia’s eﬀorts to ease the burden on ordinary citizens from its promised economic overhaul are taking a toll on its balance sheet. The increase in the kingdom’s spending on wages and social benefits during the first quarter exceeded what it accrued through higher taxes and lower subsidies, driving the deficit higher to 34.3 billion riyals ($9.2 billion), from 26.2 billion riyals a year ago, according to a quarterly Finance Ministry report. Officials are trying to ease the economy’s addiction to oil exports by finding alternate revenue sources, while shrinking the deficit by reshaping one of the world’s most generous welfare schemes. –CB Report

LONDON

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MOSCOW

Russia’s state-owned Sberbank said it was selling its Turkish subsidiary Denizbank to Emirates NBD for roughly 2.7 billion euros ($3.2 billion) to focus on its own brand. Sberbank bought Turkey’s Qifthlargest lender in 2012 from the failing French-Belgian bank Dexia as part of efforts to expand internationally, but US sanctions imposed after Russia’s intervention in Ukraine have crimped that strategy. The Russian bank said the Qinancial impact of the deal will depend on Qluctuations in the exchange rate of the Turkish lira, which has been weakening in recent months, until the closing of the transaction. Sberbank paid Dexia 6.5 billion Turkish lira for Denizbank, which was worth approximately 2.8 bil-

uk annual inflation dips to lowest in 13 months

lion euros or $3.5 billion at the time. While Sberbank will receive 14.6 billion lira for Denizbank, that is currently less than the purchase price in dollars. Sberbank’s chief executive German Gref said “the decision to sell Denizbank is prompted by a change in Sberbank Group’s international strategy and will allow us to focus further on development

of the ecosystem of Sberbank.” Meanwhile, Emirates NBD’s vice chairman and managing director Hesham Abdulla Al Qassim said the purchase will help it “establish itself as a leading bank in the region and achieve meaningful diversiQication of its operations, both in new countries and in a broad range of business segments.”

Russia & france to talk nuclear energy partnership in third-party countries

ussian and French power companies are considering joint nuclear projects in third-party countries, says Russia’s Rosatom. The talks will take place during the St. Petersburg International Economic Forum this week. “During the ‘nuclear dialogue’ the sides are expected to present the joint projects on cooperation in third countries in such areas as engineering and the manufacture

of nuclear power plant equipment, development of renewable energy resources and energy efficiency, the digital transformation of the energy sector and nuclear fuel cycle,” Rosatom said. Rosatom will talk to French companies Electricite de France (EDF), Schneider Electric, Assystem and others. Russia and France have a long history of partnership in nuclear energy. –CB Report

ritain’s annual inQlation rate eased in April to 2.4 percent, the lowest level since March 2017, ofQicial data showed Wednesday, weighing on the pound. The Consumer Prices Index 12month rate had stood at 2.5 percent in March, the OfQice for National Statistics said in a statement. Analysts had expected the rate to remain unchanged last month, but it was helped lower by cheaper air fares, the ONS added. With inQlation falling in recent months and Britain’s economic growth suffering a sharp slowdown in the Qirst quarter amid tough Brexit talks, the Bank of England decided against raising its key interest rate earlier this month. But with oil prices on the rise and the pound weakening, inQlation risks picking up again in the coming months. “The jump in the oil price has started to hit petrol pumps,

pushing up costs for UK consumers and businesses alike,” said Kevin Doran, investment ofQicer at AJ Bell. “In addition, the weak pound will be driving up input costs for many UK companies which will ultimately Qilter through to UK consumers in the coming months.” The pound has slid in recent weeks, in part owing to forecasts that the Bank of England will not rush to raise borrowing costs. The data on Wednesday sent it falling further. “InQlation falling for the third month in a row further dents any hopes of a late-summer rate rise from the Bank of England,” said Ben Brettell, economist at Hargreaves Lansdown. Meanwhile, British retail sales jumped far more than expected in April, rebounding from a slump the previous month caused by “Beast from the East” freezing weather. “The quantity bought in April increased by 1.6 percent as all sectors, excluding department stores, recovered from the declines seen in March” when sales slumped 1.1 percent.

Iran devalues rial to 42k against uS dollar n a sign that it will allow some Qlexibility in exchange rates under threatened US sanctions, Iran has lowered the ofQicial value of the rial versus the dollar for the Qirst time since it tried to stamp out a free currency market last month. In early April, with the rial sinking to record lows before US President Donald Trump’s decision to exit the Iran nuclear deal, Tehran said it was unifying ofQicial and freemarket rates for the currency at a single value of 42,000 to the dollar. Authorities threatened anyone trading the rial at other rates with arrest, and sent police to patrol

money exchange shops in big cities. This week, however, the central bank has begun engineering a very slow decline of the rial, suggesting it will let the currency move gradually in response to supply and demand, as long as a fresh free-fall can be avoided. The central bank set the rate at 42,050 on Monday and 42,060 on Tuesday, its website showed. Central bank chief Valiollah Seif hinted at the possibility of further falls, saying the rial could move as much as 5 or 6 per cent during the Qiscal year to March 20, 2019, the Financial Tribune newspaper reported. –CB Report

china to cut auto tariﬀs on July 1 as trade tensions ease

BEIJING

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hina announced that it would cut tariffs on auto imports from July 1, the latest sign of a thaw in trade frictions with the United States. Beijing has announced a Qlurry of trade liberalisations and reforms

since coming under Qire from the Trump administration and some European politicians for its protectionist policies. The planned reduction in import duties from 25 percent to 15 percent is a boon for international automakers but may fall short of fulQilling US President Donald Trump’s expectations that Beijing match US tariffs of 2.5 percent. Demands reportedly put to

China by the United States at the start of trade talks called on it to lower all tariffs to at least match those of the US. Trump has been following the issue closely and on Monday tweeted, “On China, Barriers and Tariffs to come down for Qirst time.” The announcement in Beijing came days after Vice Premier Liu He and US Treasury Secretary Steve Mnuchin led negotiations in

Washington which ended with an agreement to pull back from the brink of a trade war. The two sides agreed to refrain from imposing tariffs threatened on billions of dollars’ worth of goods that would have dented US-China trade. But the Trump administration has been split on the issue, with some members of the negotiating team saying the tariffs could still be imposed.

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Swiss bank to drop Iranian business A Swiss lender is suspending new transactions with Iran following US President Donald Trump’s withdrawal from the nuclear deal with Tehran. Banque de Commerce et de Placements (BCP)external link announced on Tuesday that it was wrapping up its activity in Iran in response to the US pulling out of the Iranian nuclear accord earlier this month. + Swiss ﬁrms are wary of US sanctions + Swiss politicians are calling for resistance “We have suspended any new transaction related to Iran after May 8, 2018 and started the ‘wind down period’ within the framework of OFAC announcement.

Shipping activity at port Qasim hipping Activity at Port Qasim remained active where four ships Torrente, IVS windcar, Phoebe and Kaimong Galaxy carrying Containers, Coal and Palm oil were arranged berthing at Qasim International Container Terminal pakistan International Bulk Terminal respectively on Thursday. Meanwhile, six more ships Safmarine Nyassa, Adamastos, Reem-5, valadon, Sea Lavender, and Alliance-II Sino Energy-8, Saverign and Sea Lavender carrying Palm Oil, Disesl Oil and coal also arrived at outer anchorage of port qasim during last 24 hours. A total of nine ships namely, Torrente, MSC Asya, Inlaco Bright, MG Hammond, Bravo-V, IVS Windsor, LMZ Phoebe, YM Miranda, Kalmong Galaxy and Euro strength are currently occupying PQA berths to load/oﬄoad containers, wheat, soya bean seeds, coal chemicals, ING, Palm oil and fruance oil respectively

Ports & Shipping

Sk to provide economic support to hard-hit shipbuilding regions S

SEOUL

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outh Korean Finance Minister Kim Dong-yeon said the government will designate Qive key shipbuilding centres on the country’s south coast as “industry crisis” zones eligible for economic support. The areas include Dong-gu in the city of Ulsan, Geoje-si of Kyong-nam province and Jinhae-gu of Changwon, as well as Tongyeong and Mokpo in the southwest coast. These areas are home to heavy shipping and shipbuilding companies and have struggled with high unemployment in recent years. A copy of the minister’s speech released from the ministry showed the government would provide Qinancial and tax incentives for suppliers of shipbuilding companies in the designated regions. The government will also provide job training to people made unemployed through recent restructuring to boost their re-hiring or full-time employment prospects. “Support will be made on product enhancement efforts for shipbuilding and auto in-

dustries in the designated regions, and help will also go to developing tourism infrastructure using local attractions,” Mr Kim told other ministers in a policy meeting in Seoul. Meanwhile, Strong sales of semiconductors and petroleum goods were expected to keep South Korea‘s exports growing in April, albeit more slowly than a year ago when exports spiked ahead of a holiday

period, a survey showed. The median forecast from the poll of 10 economists expected exports would rise 4.1 percent from a year earlier, stepping down from March’s 6.1 percent growth. The poll found the value of imports was expected to have surged 18.4 percent last month versus a year ago because of a rise in global oil prices.

Friday June 1, 2018

Japan-uS trade surplus edges up in April apan’s politically sensitive trade surplus with the US edged up in April, government data showed, after Tokyo warned it may take retaliatory measures against US tariffs. Japan logged a surplus in April of 615.7 billion yen ($5.6 billion) with the US, up 4.7 percent after a 0.3 percent decline the previous month, as demand for cars and construction machinery increased, according to finance ministry data. The fresh data comes after Tokyo informed the WTO it had the right to impose tariffs worth 50 billion yen ($451 million) on US goods equivalent to the impact of the US tariffs newly imposed on Japanese steel and aluminium products. The European Union has made it clear that it does not for now intend to use the countermeasures, but that its notification to the WTO leaves all options on the table as a June 1 deadline for Washington to retract its tariffs approaches. Washington and Beijing said they had agreed to avoid a potential trade war and back off from imposing tariffs on each other. –CB Report

kpt ships movement, cargo handling report during last 24 hours. A record cargo handling was achieved at the port where a cargo volume of 228.549 tonnes, comprising 201,165 tonnes import cargo and 27,384 tonnes export cargo inclusive of containerized cargo carried in 2,658 containers (TEUs), (1,373 TEUs imports and 1,285 TEUs exports) was handled at the part during last 24 hours. Meanwhile, Seven ships, New Ark, MSC Asya, Maersk Columbus, Bravo-V, Inlaco Bright, Maritime Satoshio and Al-Ajnan scheduled to load/oﬄoad Containers, Wheat, Coal and LNG were arranged berthing at Qasim International Container Terminal, Pakistan International Bulk Terminal, Multi Purpose Terminal and Engro Elengy Terminal respectively during last 24 hours. –CB Report

KARACHI

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ollowing were the movements of ships and cargo handling at the Karachi Port Trust (KPT) during the last 24 hours, ending at 0700 hours on Thursday. SHIPS ARRIVED: M.T Khan Tanker Arwa General Cargo Sufolk Trader Container Ship Mel Temi Tanker Maliakos Container Ship SHIPS SAILED: Golden RAY Bomar Hermes Kota Kasturi COSCO Colombo AL Mahboobah MSC Positano Sufolk Trader CARGO HANDLING TURNOVER: The total cargo handled at Karachi Port during the last 24 hours closed at 185,352 tonnes. The breakup shows that the port has handled 35,982 tonnes of export cargo and 149,370 metric tonnes of import cargo during the said period. Commodity wise handling in metric tonnes is given

below. COMMODITY: IMPORT: EXPORT: TOTAL: Containers 52,966 23,363 76,329 BulK Cargo 7,843 803 8,646 Loose Bulk Cement Coal 13,887 13,887 Wheat 1,923 1,923 Rock Phosphate 3,550 3,550 Soya Bean Meal 3,220 3,220 Talc Powder

2,500 Oil/Liquid 47,000 3,400 50,400 APP/msq/mkm/ Meanwhile, The Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours. ALONG SIDE (Bulk Oil Pier) OP-I Karachi D.

Crude Oil PNSC 29/04/18 OP-I Shalamar D. Crude Oil PNSC 27/04/18 OP-II Cora D. Jet Oil Alpine 29/04/18 OP-II Trf Miami D. Chemical East Wind 30/04/18 OP-III FPMC P Eagle D. Mogas Transtrade 27/04/18 ALONG SIDE (East Wharves): 1 Bold World D. Base Oil Alpine 27/04/18 1 MTM Gibralter L. Ethanol East Wind 29/04/18 2/3 Ruby Star L. Wheat WMA Shipcare 20/04/18 5 Pacific Talisman L. Wheat OC-Services 25/04/18 10/11 Kirn Bosphorus L. Wheat Asia Marine 26/04/18 11/12 Nord Kitan D. Coal OC.World 30/04/18 11/12 Pistis L. Wheat Northersatr 13/04/18 15/16 Liberty Peace D. Vehicles Al Hamd 29/04/18 ALONG SIDE(P.I.C.T): Berth Vacant. ALONG SIDE(PDWCP): Berth Vacant. Along Side(West Wharves) 20/21 Chipol Huanghe D. Gen. Cargo Sea Hawks 27/04/18 20 Lady Nisreen L. Cement.

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NAB recovers cash, luxury vehicle linked to Ahad Cheema LAHORE: The National Accountability Bureau (NAB) has recovered Rs14.5 million and a vehicle owned by former director general of Lahore Development Authority (LDA) Ahad Cheema from a show-room on Jail Road. According to a NAB oﬃcial, the Bureau had been analysing Cheema’s laptop taken into custody after his arrest on charges of corruption in Ashiyana-e-Iqbal Housing Scheme. It was then revealed that Cheema had a relation with a vehicle dealer whose showroom is situated at Jail Road.

Friday June 1, 2018

Business

NAB chief directs complete probe in 10 months ISLAMABAD

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ational Accountability Bureau (NAB) Chairman Justice (R) Javed Iqbal has directed the Operation Division to complete the complaint verification, inquiries and investigations in accordance with the prescribed timeframe of 10 months on the basis of solid evidence as per law. “No laxity, in this regard, would be tolerated,” he said while chairing a high level meeting to review performance of operations and prosecution divisions of NAB at its headquarters. The NAB chair-

fBR asked to extend tax amnesty KARACHI

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he Union of Small and Medium Enterprises (UNISAME) has urged the chairman of FBR to extend the last date of filing returns under the tax amnesty scheme. UNISAME President Zulfikar Thaver said people were fasting and praying for long hours during Ramazan and were not in a position to do the needful to benefit from the amnesty scheme. The union has also requested the FBR chairman to arrange for sessions with the chambers of commerce and industry.

man directed Lahore NAB to complete 161 inquiries, 47 investiga-

tions; Karachi NAB to complete 173 inquiries, 119 investigations;

Khyber Pukhtunkhwa NAB to complete 105 inquiries, 26 investigations; Balochistan NAB to complete 85 inquiries, 23 investigations; Rawalpindi NAB to complete 102 inquiries, 40 investigations; Multan NAB to complete 18 inquiries, 13 investigations, and Sukkur NAB to complete 95 inquiries and 20 investigations within the prescribed timeframe. The NAB chairman directed the Prosecution Division to pursue effectively 1216 corruption references currently under process in various respective accountability courts so that the corrupt could be taken to the task, and NAB would recover billions of rupees from allegedly corrupt people and deposit it into the national exchequer.

textile sector demands zero-rated import of hydrogen peroxide T

KARACHI

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extile processing sector has asked the government for permission as well as concessions for the import of hydrogen peroxide, an extensively used textile bleaching agent, the price of which spiked sharply following supply issues in the local market. Salim Parekh, the central chairman of All Pakistan Textile Processing Mills Association (APTPMA), in a statement said the local manufac-

turers had abruptly reduced the supply of the chemical in the country, creating panic, as processing units were the major consumers of this industrial material. “Keeping the situation in view, the commerce ministry is urged to allow us to import hydrogen peroxide for textile processing use only on a zero-rated basis until the local supply is back to normal in terms of rates and delivery,” Parekh said. The APTPMA official said he feared that this hasty step, on part of local manufacturers, was bound to lead to further artificial short-

age, and escalate the prices of the bleaching agent. “Shortage of this chemical will adversely affect the export of valueadded textile fabrics/ garments and deprive the country of valuable foreign exchange to the tune of billions of rupees, besides causing closures of hundreds of textile industrial units,” Parekh said. He added that this problem emerged after Sitara Peroxide cut down its production leading to negative effect on the South Zone, particularly the small and medium enterprises sector.

petrol prices likely to increase by Rs8 per litre ISLAMABAD

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he Oil and Gas Regulatory Authority (Ogra) has recommended increasing prices of petroleum products by up to 16.9% for June 2018, following a rise in global crude prices. The Ministry of Energy (Petroleum Division) received a summary from Ogra that recommended an upward revision in oil prices. Prices of all petroleum products, except for kerosene, are deregulated and Ogra is tasked with just monitoring the prices. Following the global price rise, the eﬀect will be felt in the prices of petrol, kerosene, high speed diesel (HSD) and light diesel oil (LDO). According to Ogra’s summary, petroleum division oﬃcials said consumers of HSD, which is mostly used in the transport and agriculture sectors, may face an increase of Rs12.50 (12.7%), which would take its price to Rs111.26 per litre from the existing Rs98.76per litre. However, petrol prices may go up from the existing Rs87.70 to Rs96.07per litre, an increase of Rs8.37 per litre (9.5%). The price of kerosene may be increased by Rs8.23 per litre, up 10.3% from Rs79.87 to Rs88.10 per litre. Kerosene oil is used for cooking purpose especially in remote areas where LPG or pipeline gas was not available.

fertiliser oﬀ-take increases 27% to 570,000 tons in April KARACHI

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ales of fertilisers posted a strong growth of 27 percent year-on-year (YoY) to 570,000 tons in April as urea demand continued to surge on prospects of price hike, a brokerage reported. In April, urea sale sharply rose 50 percent year-on-year to 375,000 tons. But, sales of diammonium phosphate

(DAP) fell 28 percent to 69,000 tons during the month as compared to the corresponding month a year earlier. “We attribute surge in urea off-takes by 50 percent YoY and 10 percent MoM (month-on-month) amid higher demand from dealers on account of anticipated increase in urea prices,” Waqas Ahmed, an analyst at Taurus Securities said. Taurus Securities, citing data of the National Fertilizer Development Centre, said sales of urea surged 45

percent to 1.63 million tons, while DAP sale increased six percent to 434,000 tons in the January-April period over the same period last year. In April, urea inventory rose 15 percent month-on-month to 436,000 tons to meet higher upcoming seasonal demand. DAP inventory, however, fell 12 percent to 190,000 tons during the month under review over the previous month. “Comfortable inventory levels of urea and DAP have improved pric-

ing power for local fertiliser manufacturers, as a result average urea prices increased 4.7 percent MoM (in April),” Ahmed said. Currently, international urea and DAP prices are hovering around $240 and $385 a ton, respectively and “are expected to remain steady, which along with removal of price capping (Rs1,400/bag) from urea would provide an added advantage to the local manufacturers,” he added.

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ICCI concerned over 50pc rise in external debt ISLAMABAD: The Islamabad Chamber of Commerce & Industry has expressed great concerns over the rising external debt and liabilities of the country. The country’s external debt and liabilities have soared to a record level of $91.8 billion by the end of March 2018 as per SBP’s latest report showing an increase of over 50% during the last four years and nine months. The ICCI called upon the government to take urgent measures to reduce the country’s dependence on rising foreign debt as it would create more problems for the economy. ICCI President Sheikh Amir Waheedsaid that the previous government had resorted to heavy borrowing to meet the current expenditures and run the aﬀairs of the country. It was expected that the current government would curb this unhealthy trend by devising a new strategy.

Leading businessmen should be part of interim govt: LccI

Friday June 1, 2018

Chambers

IccI to hold Boc in Istanbul to improve pak-turkey bilateral trade

LAHORE

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resident of the Lahore Chamber of Commerce & Industry Malik Tahir Javaid has said that leading businessmen and experienced economists should be a must part of the interim government to ensure economic integrity. Economy is in a sensitive mode and interim government cannot aﬀord to run without a team of economic experts. While talking to a group of the representatives of diﬀerent industries, along with the LCCI Senior Vice President Khawaja Khawar Rashid and Vice President Zeshan Khalil, the LCCI President Malik Tahir Javaid said that interim government in near future, interim government would hold the reins of the system in its hands

along with a bundle of economic challenges. He said that a team of experts consisting of leading businessmen and experienced economic experts’ inevitable otherwise economy would be scattered like debris. Malik Tahir Javaid said “Only economically strong Pakistan can handle all sorts of international pressures therefore “war against economic ills” should be started instantly and a task force for economic revival, having representatives from both public and private sector, should be formed.” He said that Pakistan is a resource-rich country and does not need any external financial help. He said that economic weaknesses of any country give opportunity of criticism to the others and same is being happened in our case. He said that political instability, below the mark foreign direct investment, high cost of doing business, politics on mega projects like Kalabagh dam and huge trade deficit have led to stagnant growth in Pakistan.

ISLAMABAD

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heikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry hosted an Iftar Dinner at his residence which was attended by H.E. İhsan Mustafa Yurdakul. M. Naveed Malik Senior Vice President ICCI, M. Shakeel Munir, Sheikh Abdul Waheed and others were also present in the Iftar dinner. Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry informed the Turkish Ambassador that ICCI would organize a Business Opportunities Conference-BoC and Award Ceremony at Istanbul, Turkey on June 27-28, 2018 which was aimed at further improving bilateral trade between Pakistan and Turkey. He said a delegation of about 400 persons of ICCI would attend the BoC and hold B2B meetings with Turkish counterparts to explore new areas of mutual cooperation between the two countries. Sheikh Amir Waheed said ICCI would also hold Award Ceremony on June 28, 2018 at Istanbul to rec-

ognize the contribution of top performing businesses in exports, trade and other fields. He said high dignitaries and businessmen have been invited to the Award Ceremony so that they could see the potential of Pakistan’s private sector and explore business match-makings with them. He stressed that Turkish Embassy should fully cooperate with ICCI in successful holding of these events. He said Pakistan and Turkey en-

joyed historical friendly relations that should be transformed into growth trade and economic relations between the two countries. He said the best way to strengthen trade relations was to promote direct connectivity between private sectors of both countries. He said the holding of BoC in Turkey was a right in that direction. Speaking at the occasion, H.E. İhsan Mustafa Yurdakul, Ambassador of Turkey appreciate the initiative of ICCI for or-

LccI strongly opposes increase in poL prices LAHORE

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he Lahore Chamber of Commerce & Industry has feared of dire economic consequences if government increases the prices of petroleum products that are already high and pinching the trade & industry. The LCCI President Malik Tahir Javaid said that increase in petroleum prices at this critical stage when caretaker setup is going to hold the system, would add fuel to the Qire and would give a big blow to the trade, industry and ultimately to the economy. He said that economic indicators are not in the favor of economy. No sector would be left unaffected if government goes against the ground realities and increases POL prices that is one of the basic

raw materials for the industry and a must for trade and economic activities. “Government should cut down non-development expenditures instead of dropping petrol bomb on the trade and industry which is already struggling for survival. Industry would not be able to contribute in economic uplift of the country if anti-industry decision is taken”, Malik Tahir Javaid said and further added that said that though oil prices in the international market are on the rise but instead of passing this surge to the trade, industry and masses, government should cut the number of taxes and duties levied on petroleum products. The LCCI President said that it is not the industrial sector alone but the agriculture sector would also badly suffer. He said that Pakistan agriculture sector is engine of growth. The increase in petroleum

prices would increase the input cost of agriculture production as high speed diesel is being used in tractors, tube-wells, harvesters, thrashers and other agriculture machinery. Senior Vice President Khawaja Khawar Rashid and Vice President Zeshan Khalil said that the cost of thermal generation by private sector to go up. They said that Government is producing huge amount of electricity through thermal means and after increase in petroleum prices, prices of electricity would touch new highs. They said that the Lahore Chamber of Commerce and Industry had for the last many years been calling on the concerned government circles to take measures for the promotion of alternate fuels as trade deficit was fast widening due to heavy imports under the head of petroleum products.

ganizing BoC and Award Ceremony at Istanbul, Turkey as it would contribute towards improving business linkages between the private sectors of both countries. He said more such events should be held on reciprocal basis between Pakistan and Turkey in order to develop strong trade and economic relations between the two countries. He assured that Turkish Embassy would facilitate ICCI in holding these events successfully in Turkey.

call for urgent redress of fruit Market issues delegation of Islamabad Chamber of Commerce & Industry visited I11/4, Islamabad to congratulate the newly elected oﬃce bearers of Anjamun-e-Wholesale Fruit Commission Agents. Babu Aleem was elected as President, Tahir Ayub Secretary General, Haji Nadar Khan and Haji Dilawar Khan Senior Vice Presidents, Hafiz Abdul Waheed and Syed Wali Jan Vice Presidents, Ch. Zulfiqar Ahmed Additional Secretary General, Ehsanullah Khan Secretary Finance, Ch. Izhar Rauf Secretary Information and Syed Afzal Bukhari Joint Secretary. Muhammad Naveed Malik Senior Vice President, Nisar Mirza Vice President ICCI, Zubair Ahmed Malik Chairman Founder Group, Mian Akram Farid.

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Sargodha ASO impounds NDP Toyota Hilux Surf SARGODHA: The ASO has impounded a foreign origin non-duty paid Toyota Hilux Surf bearing registration no: LZV-212 Model 1994 worth Rs 1.6 million, involving customs duty and taxes of Rs 9.8m. Sources told Customs Today that Assistant Collector Shah Samad Hamdani received a tip-oﬀ regarding some smuggling attempts. He formed an ASO team under the supervision of Superintendent Chaudhary Muhmmad Sardar, which also included Inspectors Malik Atif, Bashir Ahmed, Amir Ali, and Sepoys Muhammad Ashraf, Haﬁz Nasir Ahmed, Muhammad Amin, Muhammad Iqbal and Shafqat Mehmood.

Friday, June 1, 2018

CUSTOMS BULLETIN

peshawar I&I foils bid to smuggle auto parts worth Rs29 million PESHAWAR tARIQ DeRYA

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irectorate of Customs Intelligence and Investigation Field Intelligence Unit (FIU) impounded two trailers full of second hand auto parts and scrape along with two vehicles worth Rs.29 million and arrested two persons. Customs Intelligence and Investigation Director Arslan Subutgeen received credible information about some smuggling attempts. He immediately informed Field Intelligence Unit to enhance vigilance on all routes leading to different roads. The Field Intelligence Unit intercepted two 22 wheeler offending vehicles (vehicles use for carrying smuggled goods) and recovered huge quantity of non-duty taxes paid old auto parts and scrape, he added that the estimated value of goods were approximately above Rs.29.5 million. The Director told that both drivers of offending vehicles who were loaded with smuggled goods were arrested while under Customs Act 1969 the FIR has been lodged against the vehicles as well as against the possessor of goods whereas the case has been forwarded the same to Adjudication

section for further action. Sources told that current week remained very

successful regarding impounding of NDP vehicles as during current week

the I&I Peshawar impounded multiple NDP vehicles including Parado,

Premio, Honda etc and achieve revenue in worth of Rs.15 million.

ANf seizes 1.5 tons narcotics worth Rs1.1b in 22 raids RAWALPINDI

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he Anti-Narcotics Force (ANF) Pakistan has seized 1.557 tons narcotics worth Rs1.11 billion in the international market, arrested 33 persons involved in drug smuggling and impounded seven vehicles while conducting 22 counter-narcotics strikes across the country. According to the ANF

spokesperson, the seized drugs included 1,548kg hashish, 8.7kg heroin and 750 grammes amphetamine. The Quetta ANF, acting on a tip-off, placed a check post at Lasbela-Karachi Road strictly checking vehicles proceeding towards Karachi. A trailer No TLW-381 was intercepted by the ANF team on RCD Road, near Zero Point, Lasbela and recovered 1,500kg hashish. A person identiQied as Sohrab, resident of Karachi, was also arrested. Rawalpindi ANF intercepted a car near Skyways Bus Stop, Faizabad and recovered 3kg hashish. Two

accused identiQied as Ali Raza Qadri and Muhammad Amir, both from Peshawar, were arrested. In another operation, Rawalpindi ANF arrested an accused identiQied as Firdos Khan from Peshawar and recovered 5kg hashish. He was arrested near Bank Stop, Attock. In the third operation, Rawalpindi ANF arrested two Nigerian nationals namely Onyedikachukwu Okaibe and Jennifer Ijeoma at New Islamabad International Airport and recovered 1.796kg heroin which was concealed in their trolley bags. In the fourth operation, Rawalpindi ANF intercepted a car

near Kutcheri Chowk, Rawalpindi and recovered 4.5kg hashish, 20 ecstasy pills, a 30-bore pistol with a magazine and four rounds and a Kalashnikov with 10 rounds. Four accused identiQied as Aneel Chaudhary from Lahore, Kashif Asghar from Gujranwala, Ahsan Nawaz from Khushab and Syed Ibrar Hussain from Muzaffarabad were arrested. Lahore ANF arrested two accused identiQied as Kaneez Fatima and Muhammad Sultan from Bahawalnagar at Faisalabad International Airport and recovered 1.585kg heroin. In another operation, Lahore ANF arrested two ac-

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cused identiQied as Muhammad Saleem from Sahiwal and Muhammad ShaQique from Faisalabad at Allama Iqbal International Airport, Lahore and managed to recover 45 capsules weighing 860 grammes of heroin. In the third operation, Lahore ANF intercepted a Saudi bound parcel at Cargo Complex based at Allama Iqbal international Airport, Lahore and recovered 3.075kg heroin. In the fourth operation, Lahore ANF recovered 200 grammes of heroin from a woman from Muzaffargarh who was arrested near Shahensha Hotel, Goodar Chowk.