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LAHORE

M HAYAT

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ustoms Central Region has collected Rs 2,800 million under the head of customs duty (CD) during the Qirst 15 days of current month of June 2017. As per details the Customs Appraisement Lahore collected Rs 1,666 million under the head of customs duty (CD) during the period under review while the Collectorate of Customs

Preventive collected Rs 353 million during the month under review. On the other hand, the Collectorate of Customs Multan collected Rs 519 million customs duty (CD) during the 15 days of June 2017. In the same way, the Collectorate of Customs Faisalabad collected Rs260 million under the head of customs duty (CD) during the period under review. Overall the Central Region collected all duty and taxes from all the four Collectrate worth Rs 2800 million during the period under review.

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Meanwhile, The Customs Central Region has collected Rs 5,371 million in May 2017, showing a growth of 8 percent as compared to the assigned target of the same period last year. As per details, the Customs Collectorate of Appraisement collected Rs 2,952 million customs duty during period under review while Customs Collectorate Preventive collected Rs 1,016 million. On the other hand, the collectorate of Multan collected Rs 1,041 million customs duty during the month of May 2017.

DG Valuation issues Valuation Ruling No 1176/2017

Pakistan to join top global economies of G20 by 2030: Ishaq Dar

Rs2,829m released for petroleum sector under PSDP till date

Customs Preventive collects Rs 29048m duty, taxes

'IDP’s revised target almost doubled against allocated target of last year’

DG of CustomsValuation has revised the customs value of portable/ window type | See pAge 02 |

Dar saidPakistanwouldbepartofeliteclub ofleadingworldeconomiesG20by2030 | See pAge 03 |

ThegovthasreleasedoverRs2,829mforthe Ministry of Petroleum &Natural Resources | See pAge 04 |

Customs Preventive has collected Rs29048 million all duty and taxes | See pAge 14 |

The IDP will achieve its CD target during June of Financial Year FY2016-17 | See pAge 16 |

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Principal Appraiser, Syed Irshad Ali Shah exonerated Tuesday, June 20, 2017

National

ISLAMABAD: Federal Board of Revenue (FBR) has exonerated Syed Irshad Ali Shah from the charges levelled against him. The Board issued exoneration notification after the disciplinary proceedings under Government Servant Adnan Rafiq, Deputy Collector, MCC Appraisement-West, Karachi. He was appointed as Inquiry Officer to conduct inquiry into the charges leveled against the officer. On the basis of report of the Inquiry officer, the Authorized Officer / Chief (Management-Customs) FBR, has, exonerated Mr. Muhammad Idrees, Appraising Officer from the charges leveled against him. He is however, warned to be careful in future.

Dg Valuation issues Valuation ruling no 1176/2017

KARACHI

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wAQAr AHMeD AnSAri

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he Directorate of Customs Intelligence and Investigation confiscated a large quantity of plastic dana (plastic dana) in action against the smuggling in Quetta while seized smuggled mobile phones in a second action. According to details, Deputy Collector Customs Preventive Junaid received a tip-oﬀ regarding transportation of smuggled goods from Kerani to Afghanistan. He immediately constituted a team led by Haroon Imtiaz to curb the smuggling attempt. The anti-smuggling team consisted of customs preventive officials Hakim Ali, Safdar Mahmood, Shamim Qaisar, Imran Farooqi and others. The said team raided a house number 34 L block, the team searched the house and found more than 80 bags of crystal plastic dana. The ASO team took it into custody and also detained a person Raheel Warsi and registered a case against him. Meanwhile, in another operation the Customs ASO team seized mobile phones, anti-smuggling team incharge Haroon Imtiaz team (Ali Hakim sector Model Customs, Safdar Mahmood, Shamim Qaisar, Imran Farooqi and others) received a tip-oﬀ and raided mobile market in the Regi area, the search yielded a store possessing non-duty paid more than 70 smart phones.

he Directorate General of Customs Valuation has revised the customs value of portable/ window type air conditioners Valuation Ruling No 1176/2017 under Section 25-A of the Customs Act, 1969. Customs values of portable/ window type air conditioners were determined, under Section 25-A of the Customs Act 1969, vide Valuation Ruling No.1053/2017, dated 23-022017 (Annex B). Several importers Qiled Revision Petitions under section 25-D of the Customs Act, 1969 before the Director General of Customs Valuation. The Director General directed vide Order in Revision No. 343/2017 dated 24-05-2017 that Customs values for window type and tropical multi system/ductless air conditioners be re-determined and notiQied within three weeks of the issuance of the Revision Order. Therefore, this Directorate General initiated an exercise for determination of customs values of Portable/ Window type air conditioners.Meeting with stakeholders was held on 06.06.2017. Importers had been requested to furnish invoices of imports during last three months showing factual value. Websites, names and E-mail addresses of known foreign manufacturers of the item in question through

Quetta customs i&i seizes plastic dana, mobile phones

which the actual current value can be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that

the beneQit of difference in price is passed on to the local buyers. During the Revision proceedings and during the course of the meeting, the stakeholders agitated that Values determined vide the Valuation Ruling No.1053/2017, dated -02-2017 were higher than the transaction values.

They submitted some import invoices sales vouchers in support of their contentions. They presented clearance data wherein y were clearing goods at much lower values (as low as 120$/1.5 tons and 2 tons) before he issuance of Valuation Ruling No.1053/2017 dated 23-02-2017.

nAB complying with un convention: chairman

ISLAMABAD

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ith Pakistan, a signatory of the United Nation’s Convention Against Corruption (UNCAC), the National Accountability Bureau (NAB) has been complying with its obligations under the international charter. This was stated by NAB Chairman Qamar Zaman Chaudhry during a meeting with Ahmed Bilal

Mehboob, the president of the Pakistan Institute of Legislative Development and Transparency (PILDAT), who had called on the bureau’s chief at NAB Headquarters, a statement released on Thursday said. Chaudhry said that NAB accords high value to its interaction with organisations such as PILDAT. “We at NAB feel that such interaction with a reputed organisation will bring an idea to take one’s work even higher,” Chaudhry said. Reiterating that corruption is the

mother of all evils, the NAB chief said that they were committed to eradicating corruption in all its manifestations. Talking about the UNCAC, Chaudhry said that NAB was the focal department for implementing the convention. During the meeting, NAB’s operation division gave a detailed presentation on Pakistan’s compliance to UNCAC. Pakistan had signed the convention in 2003 and ratiQied it four years later in 2007. It became a state party to the convention along

with 154 other states. Under the UNCAC, Chaudhry said that the UN OfQice on Drugs and Crime (UNODC) conducts country reviews of countries to enhance their legal framework with regards to international and transnational corruption as well as designing, sharing and enhancing tools of mutual assistance for technical assistance, fast track sharing of information and asset recovery. With NAB being the focal agency in Pakistan, it had conducted the country review of Kazakhstan and Kyrgyzstan.

With country reviews a mandatory requirement under the UNCAC, a peerreview system has been devised to assess implementation status. Under the system, experts from any two countries (selected through balloting) review anti-corruption laws, mechanisms and procedures of the country under review. Pakistan’s country review was conducted by reviewing experts from Norway and the Solomon Islands along with UNODC experts and facilitators in September 2015.

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PRA issues final tax notices to 14 restaurants 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 seizes 2 non-customs paid cars, 1,500kg tea, 85 dry batteries

Tuesday June 20, 2017

National

pakistan to join top global economies of g20 by 2030: Dar

KOHAT

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he Customs authorities have foiled a smuggling bid from Afghanistan and seized two non-customs paid cars, huge quantity of tea and dry batteries worth millions of rupees at the Kohat tunnel checkpost. Spokesman for local Customs Department, Pir Naeem Shah, told the media that two cars with fake number plates were coming from Kurram Agency after crossing the Afghan border and were destined for Karachi. The Customs authority has also seized 1,500kg tea and 85 large dry batteries, which were being smuggled to Bannu and Dera Islamil Khan from a Peshawar warehouse.

Abbotabad customs seizes 108 nDp mobile phones PESHAWAR

irfAn BAHADur

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he Customs Station at Abbotabad has seized 108 non-custom-paid mobile phones during the half month of June. About 108 cell phones of different models were recovered from a passenger coming from Gilgit- Baltistan. He was arrested with the registration of FIR against him. Due to increase in the checking by the customs officials at Abbotabad Customs, many attempts of smuggling have been aborted on this route. A large number of importers use this road for traveling to China. Customs official Hussain Shehzad informed CT that passenger failed to provide any proof of legal import of mobile phones which were confiscated. He assured that no efforts will be spared to stop the smuggling in order to provide reliable and trusted push to economic growth.

ISLAMABAD

M fAiZAn

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inister for Finance Muhammad Ishaq Dar said Pakistan would be part of elite club of leading world economies G20 by 2030 according to predictions of international Qinancial institutions. Speaking at a contract signing ceremony of “Broadband for Sustainable Development Projects and National Incubation Centres”, he said the distinction of the four year government of Pakistan Muslim League(N) was that it ensured transparency and good governance. He emphasised that political pettiness should be buried and everybody should join hands for taking forward Pakistan’s economy. He said Pakistan signed agreements with Organization of Economic Cooperation and Development (OECD) in 2016, changed its laws and made its Qinancial systems compatible with global standards to stop tax evasion. He said Pakistan Muslim League(N) led by Prime Minister Nawaz Sharif delivered what it promised and put the country on the path of sustainable prosperity. In April, he said, he met members of Pakistan-US Business Council in Washington and exchanged views with leading companies. The businessmen of United States expressed confidence in the policies of PMLN government and

appreciated its transparency in grant of projects. Ishaq Dar challenged that nobody could prove any financial irregularity of the government in its last four years. He said the government had vigorously implemented its policies and took steps for digital and financial inclusion of Pakistanis especially its youth. The plan was to digitally empower 50 percent of the country’s adult population in coming years,

Dar said the government had vigorously implemented its policies and took steps for digital and financial inclusion of pakistanis especially its youth

fST disposes of case filed by fBr employee

KARACHI

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he Federal Service Tribunal has disposed of a case carrying complaint about suspension from services filed by a staffer of the Federal Board of Revenue (FBR). The FST division bench comprising Members, Muhammad Arshad Bhatti and Muhammad Javed Iqbal Kasi, heard the petition carrying com-

plaint on promotion and suspension matters. The bench reserved decision of Gulraiz Ahmed Raza’s complaint against his suspension. The petition was pending with the bench for months. The bench remanded back the cases to the board’s administration to decide the matter in the light of law. The bench had dated in office the hearing on several other cases. Appellants, Amjad Farooq, Naveed Ali Khan, Shahzad Muhammad Aamir, Gohar

Ali, Asim Muhammad, Mehboob Ali, Waqar Ahmed, Sayyar Ahmed, Khan Hameed, Adam Khan, Noor Hussain, Muhammad Mukhtiar and Fazal Hussain had filed complaints about promotion before the tribunal. Another FST bench held hearings on Abida Aslam Rathor’ plea on reversion, Noureen Safia’s plea on discharge from service, Asif Jamal’s plea on promotion and Muhammad Aslam’s petition about promotion and regularization.

the minister added. He said in the new budget, incentives were announced for the expansion of information technology industry. He said the government would stay on and further strengthen the economy of Pakistan despite all the negative talk of certain quarters. Ishaq urged the IT sector to work for increasing exports of the country, adding the IT companies would get all out support of the government.

3 human smugglers arrested ederal Investigation Agency (FIA) claimed on Tuesday to have arrested 3 human smugglers including two brothers for depriving people of their hard earned money. A spokesman of the FIA said here Tuesday that Abdul Qadeer lodged a complaint alleging that Mohsan Raza and Safeer Raza of Sargodha received Rs 1.7 million from him for sending him England.

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Over Rs15,071b charged expenditure approved ISLAMABAD: The National Assembly has approved over Rs15071 billion charged expenditure included in demands for grants and appropriations for the ﬁnancial year ending June 30, 2018. Charged expense included Rs. 13,163,216,083,000 for repayment of domestic debt, Rs.1,231,000,000,000 for Servicing of Domestic Debt, Rs.286,611,512,000 for Foreign Loans Repayment, Rs.132,015,820,000 for Servicing of Foreign Debt, Rs.39,773,500,000 for Repayment of Short Term Foreign Credits, Rs.186,871,299,000 for External Development Loans and Advances by the Federal Government.

Tuesday June 20, 2017

Business

rs2,829m released for petroleum sector ISLAMABAD

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he government has released over Rs2,829 million for the Ministry of Petroleum and Natural Resources under the Public Sector Development Programme (PSDP) till date against the total allocation of Rs 4251 million for the Qiscal year 2016-17. According to ofQicial data, Rs 415.8 million have been released for acquisition of four drilling rigs with accessories for the Geological Survey of Pakistan. While, funds amounting to Rs 131.6 million have been provided for appraisal of newly discovered coal resources of

fiA arrests two human smugglers KARACHI

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Badin Coal Field and its adjoining areas of Southern Sindh. Moreover, Rs 20 million have been released to explore and eval-

SecMc hopeful to complete 660 Mw project ahead of time

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he Federal Investigation Agency (FIA) arrested two proclaimed offenders who were allegedly involved in human smuggling and swindling people by impersonating to be Prime Minister’s Secretariat oﬃcers. The anti-human smuggling cell of FIA made the arrest. The accused have been identified as Raja Zafar Abbas and Raja Mazhar Abbas. Zafar and Mazhar would cheat people on the pretext of sending them abroad and looted hundreds of thousands of rupees from them, said FIA oﬃcials.

uate metallic minerals in Bela and Uthal areas, district Lasbella of Balochistan. The government provided Rs 11.3 million for explo-

ration of tertiary coal in the Central Salt Range, Punjab, besides releasing over Rs 2,059 million funds for supply of gas to various villages and localities. An amount of Rs 332.2 million have been given for provision of sui gas to three localities of District Mansehra, Rs 656.7 million for various villages of district Thatta and Sajawal, Rs 170.6 million for various villages of district Sheikhupura, Rs 532.7 million villages of HaQizabad, Rs 369 for District Okara villages, Rs 163.8 million for district Mardan and Rs 25.6 million for villages of district Attock. Whereas, no funds could be released against Rs 1,413 million allocation made for provision of gas to various localities of districts Sargodha, Sialkot and Kahuta.

HYDERABAD

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he Sindh Engro Coal Mining Company (SECMC) has expressed hope that its 660 Megawatt coal power project in Tharparkar will be completed ahead of the scheduled time. According to a press release issued here Wednesday by the company’s spokesman, SECMC’s Chief Executive Shamsuddin Ahmed Shaikh said the commissioning date was set atÂ June 3, 2019.

“The total duration envisaged for completion of the project was set at 42 months, but the pace of the work ensures us of its completion in 38 months instead,” he apprised. The 660 MW coal powered power project is being built at a cost of $2 billion in Thar Coal Block II. Sharing details of the coal mining project, Shaikh said they had achieved 40 percent of the mining target while 33 percent progress had been made for the establishment of the power plant.“This progress had been made in 15 months after the Qinancial closure was achieved in April 2016,” he

noted. The SECMC’s head asserted that he strongly believed that beneQits from the coal projects should go to the local people of Tharparkar besides the rest of the country. “That’s why the company has started interventions in education, health, livelihood, and drinking water sectors for the people of the area and these schemes have already started beneQiting the local communities,” he added.Shaikh reiterated his offer for holding negotiations with the people who apprehend that the Ghorano reservoir project would in any way affect their villages.

Anti-pakistan forces halting cpec ISLAMABAD

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enator of Pakistan Muslim League Nawaz (PML-N), Mushahidullah Khan said that anti-Islamic forces were halting China Pakistan Economic Corridor (CPEC) projects, and other development works in country. He said that Pakistan was a responsible nuclear state and some elements were trying to create problems and halting this country to emerge as economic power. He said that some politicians were helping these antiPakistan forces and created troubles for impeding the progress initiated by Pakistan Muslim League Nawaz government. He said that Pakistan had made immense development under the dynamic leadership of Prime Minister, Muhammed Nawaz Sharif. He said that Pakistan had to face losses of billions of rupees due to sit-ins and demonstration launched by Pakistan Tehrik-e-Insaf (PTI). He said that PTI had made false allegations about rigging in elections. General elections 2013 elections were conducted in free fair and transparent manner, he added. The Senator said that a large number of people would have job opportunities through CPEC and “One Belt and One Road” projects.

profitability of banks eases in Q1 KARACHI

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he proQitability of banking sector eased to Rs49 billion during Qirst quarter (January – March) 2017 as compared to Rs52 billion in the corresponding quarter of the last year, the State Bank of Pakistan (SBP) said on Tuesday. The central bank said that the moderation in proQits coupled with

growth in assets narrowed down the ROA to 1.2 percent (1.5 percent as of end March, 2016). Capital Adequacy Ratio (CAR) has slightly adjusted downwards to 15.9 percent during Q1CY17 mainly due to continuing growth in private sector advances. Banks are well positioned from solvency standpoint as the prevailing CAR is well above the minimum required level of 10.65 percent. The quarterly review highlighted that the asset base of

the banking sector has expanded due to rise in both the advances and investments supported by marginal rise in deposits and increase in borrowings from Qinancial institutions. The proQitability of the banking sector has moderated while the asset quality has improved and the capital adequacy remains at satisfactory level. Against the usual pattern of seasonal retirement of advances during Qirst quarter of a calendar year, Q1CY17 witnessed an uptick in pri-

vate sector advances. Besides corporate sector’s borrowing for Qixed investments, a healthy growth in production of sugarcane led to higher levels of borrowing by both public and private sectors under Qinancing for sugar. The corporate sector, capitalizing on the low interest rates and improved business environment, has been enhancing its longer-term exposures, thereby strengthening the capital formation. Within consumer Qinance, auto and mortgage Qinance

have mainly contributed towards the growth of this sub-segment. Moreover, Islamic banking industry has contributed signiQicantly in growth in overall advances. Deposits, the key funding source of the banking sector, have increased by 0.1 percent in Q1CY17 in contrast to 0.6 percent contraction in Q1CY16. Flow of funds have largely been seen in savings (PKR 54 billion), current account-remunerative (PKR 44 billion) and others categories.

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he Collectorate of Customs Preventive has been in coordination with all the law enforcement agencies to curb smuggling and break the network of smugglers. According to the source, to stop the smuggling of the drugs and other contraband items, the customs authorities have contacted the all the law enforcement agencies to chalk out a plan and develop Standard Operating Procedures (SPOs) to curb smuggling. The sources said that in a recent incident in which a huge quantity of drugs was seized and a Pakistani born UK citizen was arrested all the law and enforcement agencies, including customs, have joined hand to root out this menace. The case regarding the arrest of the Pakistani born UK citizen is also in doldrums because now the case is out of the customs

Tuesday, June 20, 2017

reach. Customs and the law enforcement agencies have kept their focus on the airports vigilance and security after the recent seizure in which twenty kilograms of heroin was busted, added the source. In the upcoming month July the plan and Standard Operating Procedures (SPOs) will be Qinalized as joint coordination and exchange of ideas

between the law and enforcement agencies are underway, added the source. The customs ofQicers have also started the investigations on high level to apprehend the smugglers and their facilitators. The information from the culprits regarding the ways of smuggling, drugs sellerâ&#x20AC;&#x2122;s locations and hideouts as well as the master minds involved in the heinous crime. The plan and the Standard Operating Procedures (SPOs) to curb the hazard of smuggling will be tabled in front of the heads of the departments after which the approval will be given, informed the source. During the investigations with the busted culprits the customs ofQicers are much closer to the fugitives with the help of the intelligence agencies and soon the ent c identiQied smugglers will be e r a t in arrested, revealed the y of id tha t a i s t s n e a qu urc o e source. s g e u h h T

stani hich a a paki nt in w d e n d i a c d n i e l the as seiz ted al s w e s r r g a u s dr cies, en wa k citiz t agen u n e n r m o e b and enforc ined h d o j n a e v law s, ha custom ling g n i d mugg u s b r incl u tc to roo

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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

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.

promising economic variables F

LAHORE

Dr AfTAB AfZAL

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inance Minister Ishaq Dar has set the GDP growth target at 6 percent for the fiscal year 2017-18 and 7 percent for the next year, saying the country will continue to travel on the road of progress and prosperity. However, the independent economists do not see any visible progress during the current fiscal year except the normal inflow of investment from China and some other countries. No doubt the countryâ&#x20AC;&#x2122;s gross domestic product has crossed $300 mark, the population boom has spurred economic activi-

ties and market forces of demand and supply are working in their best. Yet the element of the government participation in the stimulation of the economy is missing. As the population is growing, people need houses, cloths, food and all other basic amenities of life. Most of the economic variables are best in their work and the government participation should at least be supporting. Unfortunately, corruption has come as a major hindrance in the way of business development. A new business concern brings windfall for the officials concerned and back gear in the business starts from the beginning. The only way to allow the market

forces to work independently is to clip the powers of the government machinery. The government of Pakistan Muslim League-Nawaz has presented its fifth budget before general elections in 2018, earmarking nearly Rs 4,757 billion in expenditures for the next fiscal year. The country has made good progress during the four yearâ&#x20AC;&#x2122;s tenure, but the government could have done more. There are many many areas of concern screaming for attention but are ignored. When all the economic variables are in favour of the government, its performance could have far better than the current level, standard and rate. The basic

flaw is in the ruling elite which doesnâ&#x20AC;&#x2122;t have any team of economists and policymakers. All it has to do is to rely on the bureaucratic advice and decisions on every vital economic issue. The present economic policy of the government revolves around two factors.The first choice is to impose further taxes or raise the rate of existing taxes and the second option is to take loans to farther the economic agenda. This policy has landed the country into dangerous zone. The country needs practical steps to ensure real growth. This will not happen until the government sets its priorities at the first place.

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Oil prices fall to 7-month low; natural gas rallies CANBERRA: Oil settled with a modest loss, following sharp declines in the prior session, as data showing that the global market remains awash in surplus oil, rising U.S. crude production and weak domestic gasoline demand kept pressure on prices. Natural-gas futures, meanwhile, rallied to their highest ﬁnish of the month to date, with traders encouraged by a rise in weekly U.S. supplies of the fuel that came in below market expectations. July West Texas Intermediate crude CLN7, +0.74% fell 27 cents, or 0.6%, to settle at $44.46 a barrel on the New York Mercantile Exchange after losing 3.7% a day earlier. For a second-straight session, it ﬁnished at its lowest level since Nov. 14, FactSet data show. August Brent crude LCOQ7, +1.04% on London’s ICE Futures exchange gave up 8 cents, or 0.2%, to $46.92 a barrel.

fpcci president congratulates pM for Sco membership KARACHI

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icci shows concerns over all time high trade deficit of $30 billion

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resident, Federation of Pakistan Chambers of Commerce and Industry, Zubair F. Tufail has congratulated Prime Minister Muhammad Nawaz Sharif for his successful visit to Astana, Kazakhstan, and obtaining Pakistan’s permanent membership of Shanghai Cooperation Organization (SCO). “Permanent membership is another milestone of the Prime Minister which will strengthen deep-rooted historical and cultural links as well as strong economic and strategic relations with all the member countries of the SCO. These include Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan,” he said in a statement here on Monday. FPCCI President said Pakistan had been actively participating in the organization’s activities as an observer

member since 2005 and that it fully subscribed to the “Shanghai Spirit”. While explaining the objectives of the Organization, he said the SCO was functioning for strengthening mutual trust, friendship, encouraging eﬀective cooperation in politics, trade and economy, science and technology, culture, education, energy, transportation, ecology peace, security and stability among the countries. He also thanked the China for supporting Pakistan’s entry in SCO and stated that the membership particularly in the backdrop of China Pakistan Economic Corridor (CPEC) would further enhance Pakistan’s importance in the entire region. SCO was aimed at further enhancing the connectivity, regional stability, development, economic prosperity and trade among the member states. With expansion of the group, the SCO would now represent over forty percent of the humanity and nearly twenty percent of the global Gross Domestic Product (GDP).

Tuesday June 20, 2017

ISLAMABAD

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he Islamabad Chamber of Commerce and Industry has shown great concerns over an all-time high trade deQicit that has reached US$ 30 billion in the Qirst 11 months of the current Qiscal year as it would cause serious external balance payments problems and would create additional problems for the struggling economy. Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that Pakistan’s trade deQicit was around $20 billion when the current government came into power in 2013 and business community was expecting that the government would take strong measures to promote exports for reducing trade deQicit. However, during the period from 2013 to 2017, trade deQicit has increased by almost 50% which showed that the policies of the current government have failed to promote exports up to the real potential of the country. He said that under the 3-year Strategic Trade Policy Framework,

the government had set an annual export target of $35 billion by 2018, but in the 11 months of the current Qiscal year, export have fallen to $18.54 billion from $19.14 billion during the same period of previous year while imports were on the rise which should be a cause of concerns for the policymakers. He said exports were falling despite government’s claims of pro-

viding round-the-clock power supply to the industry. He said that government was also providing Rs.3 per unit concession in electricity tariff to export-oriented industries since 2016, but all these concessions have failed to arrest the falling trends of exports. He said to boost exports, the Prime Minister had announced a subsidy package of Rs180 billion for textile, clothing,

fBr to take action against smugglers LAHORE

customs valuation issue resolved: fpcci he matter of custom valuation of Iranian-origin chocolates has been resolved and its price has been reduced. This was stated by FPCCI Standing Committee on International Affairs Chairman Sheikh Muhammad Tariq, in a meeting with Moorad Nemati, Commercial Consellor of Iran in Karachi. Sheikh Muhammad Tariq informed the house that the Iranian Chocolate was earlier being valued by Customs at par with the higher valued brands of Swiss, French and other EU-origin countries. He further said that the matter was pointed out in the meeting with Customs valuation authorities. They realized the matter and resolved by reducing its value to US$170 per kg, he added and appreciated them. –CB Report

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akistan FMCG Importers Association has urged the Federal Board of Revenue (FBR) to take action against the facilitators of smugglers who are not only hurting legal importers, local industry but also depriving the national exchequer from duties and taxes. In a statement, Pakistan FMCG Importers Association’s chairman and former Karachi Chamber president Anjum Nisar and Secretary General Ali Mattoo claimed that if the government really intends to curb smuggling, then it should tighten the noose around their facilitators. These facilitators are selling these illegally imported goods to consumers in the markets denying them their rights to

sports, surgical, leather and carpet sectors. However, the impact of this package on exports was yet to be seen. Khalid Iqbal Malik said that Pakistan was heavily depending on textiles industry for exports while the share of textiles was on the decline in the global export market. He urged that government should reconsider its export policy and make a new strategy to promote exports of engineering goods and value added IT products that would give signiQicant boost to our exports and reduce trade deQicit. He said the main reason of falling exports was that the government has not addressed the challenges hurting the export-oriented industries as no effective measures were taken in the budget 2017-18 for industrial progress, increase in exports, reduction in the cost of production and enhancing the competitiveness of Pakistani goods in the international market. He said that under the STPF 2015-18, the government had notiQied Qive cash support schemes to improve product design, encourage innovation, facilitate branding and certiQication, upgrade technology for new machinery and plants.

access of quality and duty paid goods. Pakistan is losing billions of rupees worth of revenue a year, due to smuggling. The revenue lost in the form of duties and taxes on smuggled goods could be far higher if some proper study is carried out. Anjum Nisar and Ali Mattoo

urged the government to check the facilitators working in big cities of the country such as Lahore, Islamabad, Rawalpindi, Multan, Faisalabad, Hyderabad and Peshawar. They suggested that the government should enact a stringent law against such people and reserve exemplary punishment for them.

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Customs Inspector Ahmed Jan retires Tuesday June 20, 2017

Islamabad Assist collector Mohtashim granted performance allowance

ISLAMABAD: Ahmed Jan, a Pakistan Customs Service officer of BS-16, has retired from the government service on attaining the age of superannuation. The officer, presently posted as Inspector at Model Customs Collectorate, Gwadar, retired from the government service on May 31, 2017. Meanwhile, Qamar-ul-Hasnain, a Pakistan Customs Service officer of BS-17, has retired from the government service on attaining the age of superannuation.

17 customs oﬃcers of BS-17 upgraded to next designation

ISLAMABAD

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ISLAMABAD

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li Mohtashim Minhas, a Pakistan Customs Service officer of BS-17, selected through the process of internal job posting (IJP), has been granted performance allowance. The officer, presently posted as Assistant Collector at Model Customs Collectorate, Sialkot, was granted performance allowance (equivalent to 100 per cent of basic pay) with effect from June 1, 2017. The grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. C.No. 6(96)S(BIC)/2013-14 dated 06.03.2015 and will be discontinued in case prescribed terms and conditions are not fulfilled within one month from the date of issuance of this notification.

A commissioner-ir Amer to retire on July 31 mer Bashir, an Inland Revenue Service officer of BS-17, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Assistant Commissioner-IR at Corporate Regional Tax Office, Lahore, will stand retired from the government service on July 31, 2017. Meanwhile, Muhammad Sharif KK, a Pakistan Customs Service officer of BS16, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Inspector at Model Customs Collectorate, Hyderabad, will stand retired from the government service on July 31, 2017. –CB Report

ederal Board of Revenue (FBR) has posted 17 Pakistan Customs Service ofQicers of BS-17 against their same place of postings in next designation in their own pay and scale (OPS). Waqar Hussain, Deputy Collector, (OPS) Model Customs Collectorate of Preventive, Karachi against the post of Assistant Collector, Model Customs Collectorate of Preventive, Karachi. Kaleemullah, Deputy Collector, (OPS) Model Customs Collectorate, Gwadar against the post of Assistant Collector, Model Customs Collectorate, Gwadar. Syed Talha Salman, Deputy Collector, (OPS) Model Customs Collectorate of Appraisement (East),

Karachi against the post of Assistant Collector, Model Customs Collectorate of Appraisement (East), Karachi. Syed Itrat Hussain, Deputy Director, (OPS) Directorate of Intel-

ligence & Investigation, FBR, Faisalabad against the post of Assistant Director, Directorate of Intelligence & Investigation, FBR, Faisalabad. Ms. Maryam Khalid, Deputy Di-

rector, (OPS) Directorate General of Intelligence & Investigation, FBR, Islamabad against the post of Assistant Director, Directorate General of Intelligence & Investigation, FBR, Islamabad. Maqbool Ahmad, Deputy Director, (OPS) Directorate of Transit Trade, Quetta against the post of Assistant Director, Directorate of Transit Trade, Quetta. Dr. Jam Muhammad Imran, Deputy Collector, (OPS) Model Customs Collectorate of Appraisement (East), Karachi against the post of Assistant Collector, Model Customs Collectorate of Appraisement (East), Karachi. Muhammad Wasif Malik, Deputy Collector, (OPS) Model Customs Collectorate of Exports, Custom House, Karachi against the post of Assistant Collector, Model Customs Collectorate of Exports, Custom House, Karachi.

customs i&i seizes nDp vehicles worth rs 73m T

LAHORE

M HAYAT

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he Customs Investigation and Intelligence has seized over Rs 73 million non-customs paid foreign made vehicles during the last six months from January 2017 to June 15, 2016-17. OfQicial data revealed that the Directorate of Customs Intelligence and Investigation seized 20 vehicles from various places in Lahore, including from Allama Iqbal Town, Model Town, Defence, Ravi Road, Gulberg and Ferozepur Road. As per details, the customs I&I seized over 15 cars during the period under review, including used Honda Civic car, model 2005, used Mercedes 2005, used Mark-X model 2012, used BMW model 2005, used Toyota Land Cruiser model 1992, Toyota Mark–X model 2006, non duty paid (NDP) Toyota Land model 2012, used Honda Accord car 2002, NDP used Dumper truck 10 wheeler 1995-16, NDP used Toyota Premier car model 2010, used Toyota Hilux Surf, used model

2002 Mark-X car 2005, Toyota Land Cruiser 2011, Toyota Mark car 2006 and used Dumper truck model 2012. Sources said that the

seized vehicles were taken into custody and were to be auction in order to get revenue which would be added to the national

exchequer. The auctions would be held to sale the vehicles as per the prizes determined by the customs top authorities.

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Customs Court grants bail to suspects in tax evasion case KARACHI: Customs Taxation and Anti-Smuggling Court Judge Syed Faiz Rasool Rashdi has granted interim pre-arrest bail to suspects namely Muhammad Wajid Khan and Muhammad Pervaiz, who were booked in a case of mis-declaration and tax evasion to the tune of Rs 2,605,716. During the hearing, the suspects appeared before the court along with their counsel who submitted that his clients were falsely implicated in this case and are ready to face trail, therefore, the court may grant them bail till the final judgment of this case. After his arguments, the court granted them bail against the surety of Rs 200,000 each. The court also issued notices to the investigation officer and the special prosecutor of the Customs Department to file their replies on the next date of hearing.

SHc allows suit filed by positioning Systems in levellers case KARACHI

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he Sindh High Court has allowed a suit filed by Positioning Systems which imported a consignment of levellers used in the construction industry. The single bench, comprising of Justice Mehmood A Khan, heard Hyder Shaikh advocate and counsel for defendant Pakistan Customs, DIT. The counsel for plaintiff argued the maintainability of the suit on ground that action taken by the DIT was illegal and hence could be questioned before the court. He further submitted that the DIT cannot determine the value of the imported items. The respondent Appraisement West could have examined the consignment in

accordance with section 25 (2) of the Customs Act 1969, he contended. The counsel for Pakistan Customs, main defendant in the case defended the action by the authority. How-ever the bench after hearing the sides ordered Pakistan Customs to re-asses the consignment and release the same against payment of duty, taxes etc as per fresh assessment. Meanwhile, The Sindh High Court (SHC) has issued notices to M/s Novartis Pharma Pakistan Limited on an income tax reference filed by Commissioner Inland Revenue Zone-IV, Large Taxpayers Unit. The commissioner has challenged the impugned judgment of the appellate tribunal on recovery of disputed amount from M/s Novartis Pharma Pakistan Limited. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, also directed the company to file its para-wise comments on the next date of hearing.

Karachi

court sends suspects on physical remand booked in mega tax fraud case

Hyderabad ASo seizes pad locks weighed 936 kg valued rs212284 HYDERABAD

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he 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, Mushtaq Ali Lakho and Sepoys Ghulam Sarwar, Muhammad Ayuob, Abdul Razaq, Muhram Thebo, Hawaldar, Driver Ajaz, Nisar Ahemdani and Sher Akbar, took part in the operation. The team intercepted a vehicle of a local transport company near National Highway Bypass and recovered 30 smuggled cartons containing 936 kilograms of pad locks worth Rs212284.

KARACHI

M B rAnA

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he Customs Court Judge Syed Faiz Rasool Rashdi sent suspects namely Mansoor Ahmed son of Muhammad Ahmed and Muhammad Junaid son of Siddiqui Muhammad to customs department on physical remand. They were booked in a mega tax fraud case, evaded duty and taxes in the tune of Rs6.32 million to the national exchequer. During the hearing, investigation officer produced the above named accused persons before the court and submitted that during the investigations, it was revealed that both accused with their connivance committed an offence of fraudulent clearance/ delivery of fabric consignments imported by other importer by cross shifting of the cargo after examination by customs department. He said that prosecution needs further investigation from said accused therefore, court may request grant their physical remand, after his arguments, court sent back them to customs department on physical remand and directed investigation ofQicer to produce them before court

Tuesday June 20, 2017

on next date of hearing. According to the prosecution, case was registered for violation of section 2 (s) 16, 32 (1) 32 (2) 32A, 79 and 192 of the customs act, 1969 read with SRO 566, section 33 of sales tax act, 1990, section 148 of income tax ordinance 2001, and section (1) of import and export control act, 1950 punishable under clauses 9, 14, 14A, 43, 45, 72 and 86 of section 156 (1) of the customs act, 1969 customs 11C of the section

sales tax act, 1990 and section 148 of Income Tax Ordinance 2001, and section 3 (3) of Import & Export Control Act 1950. Meanwhile, Customs Court Judge Syed Faiz Rasool Rashdi sent a suspect, Muhammad Asif Aslam, to the Customs Department on physical remand. The suspect was booked for attempting to smuggle non-duty paid contraband 340 mobile phones tentative value of Rs 10 million from Dubai to Karachi.

customs submits para-wise comments before SHc

KARACHI

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he Customs Department has submitted its para-wise comments before the Sindh High Court in response to the petition seeking re-export of a consignment of cosmetics and toiletries worth $6.61 million. Customs submitted that the petition was not Qiled by the owner, M/s Multi-Tech, of the goods instead Qiled by a stranger Aneel zia without authorization, and should be dismissed. M/s Multi-Tech imported a consignment of cosmetics, toiletries, etc from UAE at declared invoice

value of $6.61 million and Qiled their GD for clearance of goods for home consumption. The GD was processed and handed over to the authorized customs agent of the importer/petitioner for the payment of assessed amount duties and taxes, which is about Rs60 million. Subsequently, instead of clearing the goods after payment of the duties and taxes, as assessed, nearly after a month the petitioner/importer, approached the authorities for re-export of the goods as per Para-10(g) of the Export Policy Order, 2004 without giving any cogent reason. It is pertinent to mention here that the Export Policy Order,

2004, is no more in existence and rather the Export Policy Order, 2016 in existence. Further, the CGO 2 / 2005 was issued for the old Export Policy Order, 2004, thus, the same cannot be applied, mutatis motandia on the petitioners’ case. That the scrutiny of documents

and the relevant of provisions of law confirms that the imported goods can only be re-exported after clearance of goods as Export Policy clearly stipulated that re-export of imported goods can only be allowed in the case of goods stored in a bonded warehouse or the goods already cleared for home consumption. Moreover, importer has failed to provide any bona fide reason for re-export. Customs submitted before the court that the facts and circumstances of the case are giving credence to the fact that it is a case of capital Qlight under the garb of re-export of the imported goods.

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Faisalabad Appraisement collects Rs 1406.10m Tuesday June 20, 2017

National Mianwali ASo impounds 50 china made tyres valued rs2.9m & vehicle

FAISALABAD: The Customs Appraisement has exceeded revenue collection target by 122 percent during the month of May of ďŹ scal year 2017. Sources told Customs Today, that under the leadership of Deputy Collector Muhammad Rizwan, the Appraisement branch surpassed the revenue target for May by 122 percent, as it collected Rs1406.10 million against the assigned target of Rs1152.87 million. Sources said that Customs Appraisement was assigned customs duty collection target of Rs 211.20 million but it surpassed the target by 177 percent, as it collected Rs360.32 million during the said period.

customs ASo impounds nDp Toyota Hilux Surf from gT road

FAISALABAD

nAeeM SHeikH

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LAHORE

M HAYAT

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he Anti-Smuggling Organization (ASO) Mianwali has confiscated 50 China made tyres worth Rs2.9million involving customs duty and taxes of Rs181656 besides impounding a carrier vehicle during a road checking near 33-Phatak Sargodha. Under the directions of Deputy Collector (DC) Rana Falik Shair, Superintendent Choudhary Muhammad Sardar along with his team including Inspector Malik Atif Mumtaz, Bashir Ahmed and a Sepoy started checking the vehicles. The said team, after checking several vehicles, intercepted a Mazda Mini truck with registration No: BRI-2022. During the search, the team recovered 50 smuggled China made tyres. The team asked Driver Mohsin Iqbal son of Muhammad Ashraf, a resident of district Hafizabad, about customs duty paid documents but he failed to produce anything legal.

nDp Toyota vehicle valued rs1.00m impounded he Model Customs Collectorate, ASO, Customs Preventive Hyderabad, has impounded a non-dutypaid vehicle Toyota Hilux Surf worth Rs1.00m involving duty & taxes of Rs1.4m 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. â&#x20AC;&#x201C;CB Report

ollectorate of Customs Preventive Anti-Smuggling Organization (ASO) impounded a nonduty paid Toyota Hilux Surf from GT Road. The market value of impounded vehicle is Rs 1,600,000/-. Sources told Customs Today that Deputy Collector Moazzam Raza received credible information that some non-duty paid vehicles are roaming on GT Road. After receiving the information, the deputy collector constituted an ASO team under the supervision of Deputy Superintendent Agha Qadeer, Abdul Qayyum Butter and Inspector Ijaz Butt. The ASO team intercepted a Toyota Hilux Surf of 1996 model bearing registration no:LEF-08-3885. The team asked the owner of the vehicle,

who was identiQied as Muhammad Ajmal son of Muhammad Sharif, to show

legal documents regarding possession and transportation of the vehicle but

he remained failed to produce any legal documents in this regard.

Multan customs Adjudication finalizes seizure cases of worth rs81.577 million C

MULTAN

iMrAn ALi

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ustoms Adjudication has Qinalized 30 various seizure cases of worth Rs81.577 million for the duration of May. According to details, Deputy Collector Customs Adjudication Farhat Ali has concluded the hearing of 24 seizure cases of worth Rs.7.677 million after their trial during the month of May. These decided seizure cases involved cloth, auto parts, liquor and other different goods. Customs Intelligence and AntiSmuggling Organization have formed these seizure cases in their various actions in the jurisdiction. Deputy collector have decided all seizure cases in the favor of department after completion of their hearing. There were 36 new seizure cases of worth

Rs22.050 million added for trial in the month of May. Additional Collector Customs Adjudication Talib Hussain has resolved five seizure cases of worth Rs8.400 million during the month of May. Additional Collec-

tor settled these five seizure cases of smuggled vehicles seized by Customs Intelligence and Investigation and Anti-Smuggling Organization. As many as 16 new seizure cases of worth Rs25.850 million

added for trial in the Court of Additional Collector during the month of May. Collector Customs Adjudication Mirza Mubashir Baig has decided one seizure cases of worth Rs65.500 million in May after proceedings. Collector has decided gold smuggling seizure case formed Anti-Smuggling Organization at Multan International Airport. There were three new fresh seizure cases added in the Customs Adjudication for hearing formed by Customs Intelligence and Anti-Smuggling Organization includes the revenue of Rs10.500 million throughout the month of May in on-going fiscal year 2016-17. Customs Adjudication Multan Camp ofQice has almost 64 various pending seizure cases of Rs97.964 million for their legal proceedings due to unnecessary delay from respondents.

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Philippine’s exports jump 12% in April to USD4.8b MANILA: Philippine merchandise export revenues in April 2017 increased 12.1 percent year on year to USD4.8 billion from USD4.28 billion. The double-digit expansion of exports in April was brought by the robust growth performance of nine of the country’s top 10 exports, led by outbound shipments of gold surging by 2,740 percent valued at USD122.81 million. Out of the top 10 export commodities, only ignition wiring set and other wiring sets for vehicles, aircraft and ships registered a decrement of 3.7 percent in April. Electronics remained to be the country’s top export product in April, accounting for 51 percent of the total exports revenue.

SArS seizes rhino horns worth r4.99 million at or Tambo en rhino horns have been seized by customs officials from the South African Revenue Services (SARS). SARS officials intercepted two bags with 10 rhino horns weighing 24.96kg estimated at R4.99-million at Johannesburg’s OR Tambo International Airport. The discovery was made when customs officials followed up on a suspicious bag which led to a second bag that was offloaded from the cargo hold of a plane bound for Turkey. The contents were scanned and on inspection found to be four full rhino horns in the one bag and six in the other. “Two passengers and their bags were handed over to the South African Police Service for further investigation‚” SARS said. Meanwhile, The discovery of the horns was made when the shipment was put through the scanning process by customs officials. The South African Revenue Service’s (Sars) customs unit seized more than seven kilograms in rhino horns that were declared as “tea bags” at OR Tambo International Airport. –CB Report

World Customs

china drug mule ‘made suitcase from 10kg of cocaine’

ussian customs service will set up 14 tax-free points in Moscow, St. Petersburg and Sochi air hubs within the pilot project of the system launch in Russia, head of the Federal Customs Service Vladimir Bulavin told TASS. “We made a proposal to set up points in Domodedovo, Sheremetyevo, Vnukovo, Pulkovo and Sochi airports at the first stage. This does not mean other airports will not want to joint this project. I think this will be done fairly quickly. Therefore we will need to organize operations of 14 points at the first stage,” Bulavin said. Setup of such points will require staff increase because operations within the project framework will be carried 24 hours a day, he added. –CB Report

Thai man arrested for meth smuggling at Mekong bank Thai man allegedly smuggling 2,068 pills of methamphetamine was arrested by Mekong patrol navy officers and police in northeastern Thailand, local media reported. The arrest was carried out in Nakhon Phanom when the man picked up some unknown stuffs from the bank of Mekong river and sneaked into a village nearby, police disclosed. The man, aged 37, run away when spotted by the joint security team acting on tip-off but was finally arrested with 10 pack of 2,068 pills of methamphetamine. The man admitted that he has successfully delivered speed pills from Laos to Thailand for three times and was paid 5,000 to 10,000 baht (142 to 284 U.S. dollars) each time, according to local reports. Statistics from police show that drug smuggling in Nakhon Phanom has increased since 2015. 2016 saw a total of 3.5 tons of methamphetamine smuggled through the province while 2017 saw four tons of marijuana and three tons of speed pills seized. Nakhon Phanom adjoins Laos to the east over Mekong River. The river run through Myanmar, Laos, Cambodia and Thailand, a region engulfed by waves of drug producing and trafficking for years. –CB Report

russian customs to open 14 tax free points

Tuesday June 20, 2017

PHARR

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creative drug mule has forgone the traditional hidden suitcase compartment to smuggle cocaine through customs and instead used the drug itself to make her luggage. London’s Daily Telegraph said the south-east Asian woman was detained at a Chinese airport when it was discovered her suitcase was partly made from 10kg of cocaine. State news reports said the alarm

was raised when a security ofQicer couldn’t carry the unusually heavy case, which turned a darker colour in images from the scanning machines. The woman had just arrived at Shanghai’s Pudong airport from South America.The Shanghai Daily News said the cocaine was allegedly mixed into the suitcase using an injection moulding technique. Customs ofQicials conQirmed that cocaine was in the material of the suitcase after taking samples. Under Chinese law, anyone convicted of trafQicking 50g of cocaine or more will be given a mandatory death sentence. A retired journalist was executed in February for trying to

smuggle almost 4kg of cocaine into China at Guangzhou Airport in 2010. Chinese media said a dozen foreigners have been sentenced to death following drug dealing convictions since 2000. The woman who smuggled the suitcase was arrested in February, but the case was only disclosed by Chinese ofQicials this week. Meanwhile, As many as 20 people were arrested and over USD 125,000 seized after Chinese police busted a large drug racket being run from a chicken farm in southern China, ofQicials said today. More than 200 police ofQicers busted the racket after raiding a factory in Gusi, a remote mountain village.

philippines customs exceeds collection target in May MANILA

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he Bureau of Customs (BOC) collected P39.34 billion in May, exceeding the P38.28billion target for the month, the Department of Finance (DOF) said yesterday. Citing Customs Commissioner Nicanor Faeldon’s report to Finance Secretary Carlos Dominguez, the DOF said the bureau’s collection in May rose

by 23.52 percent from the P31.85 billion recorded in the same month last year. Total collections from January to May amounted to P176.06 billion, 1.69 percent short of the year-to-date target of P179.08 billion, but 13.54 percent higher than the P155.06 billion recorded in the same period in 2016. BOC spokesperson Mandy Anderson said the higher collection in May was brought about by the growth in volume and value of imports, as well as

higher foreign exchange rates and oil prices. Broken down, the BOC said the May collections consisted of P39.27 billion in cash revenue and P70 million from the Tax Expenditure Fund. The TEF is a government fund which covers customs duties and taxes for the importation of state agencies. As for the January to May period, cash revenue amounted to P175.62 billion, while collections from the TEF stood at P440 mil-

lion, Faeldon said. The BOC is the second largest tax collecting arm of the government, traditionally contributing about 20 percent of total tax revenues. Earlier, the BOC reported that it collected P104.9 billion in taxes and other tariff in the first quarter, exceeded its P104.28 billion target set for the period. The agency is targeting to hit P468 billion in collections this 2017, up from its 2016 level of P396.37 billion.

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FBR issues WT notice to PSL chairman Tuesday June 20, 2017

Lahore

LAHORE: The Federal Board of Revenue (FBR), Regional Tax Oﬃce-II (RTO-II), Withholding Zone, served a withholding tax notice on the Chairman Pakistan Super League (PSL). Regional Tax Oﬃce-II (RTO-II) seeks information from the Pakistan Super League management under section 176 of the Income Tax Ordinance 2001 regarding the collection of tax under section 236A with respect to auction and bidding of franchises in Pakistan Super League (PSL) seasons one, two and three. RTO-II Assistant Commissioner Amir Yasin sent the notice which was dispatched through Muhammad Nauman Khan, Inspector Inland Revenue, who is also a focal person regarding the case and responsible for the collection of all the information provided by the PSL management.

Accused jailed for smuggling worth rs8.00 million mobile phones LAHORE

M iMrAn MeHAr

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he Special Federal Court of Customs Taxation and AntiSmuggling has sent an accused to jail on a 14-day judicial remand. The accused was booked by the customs authorities at the Allama Iqbal International Airport while smuggling cell phones from China into Lahore. Abdul Rehman was arrested by the Customs Preventive when it seized 2,310 assorted mobile phones from his luggage at the Lahore Airport. The customs authorities had intercepted accused Abdul Rehman while he was using green channel. The phones were hidden in different bags and other belongings. The total value of the mobile

Lahore customs seizes mobiles & accessories ustoms officials have confiscated about 32 mobile phones of Apple-7 and 7-plus from a passenger travelling from Dubai to Allama Iqbal International Airport Lahore. Sources told Customs Today that the officers conducted an operation in a flight coming from Dubai. A flight of Shaheen Air NL-767, coming from Dubai to Lahore, was checked by the officials. The Customs Preventive found 14 mobile phones of Apple-7 plus from the luggage of the passenger. The accused, identified as Muhammad Ikhlaq, was travelling from Dubai to Lahore. About 10 mobile phones of Samsung-7-C were also recovered from his luggage. Mobile accessories, including chargers and hand-frees, were also recovered from him. The customs team has allowed the passenger, Muhammad Ikhlaq, to go after initial investigation and he may be summoned again anytime if more investigation needed by the Customs Department. –CB Report

phones has been estimated at Rs8:00million. Accused Abdul Rehman is in the custody of customs investigation team on physical remand. After the completion of his remand, Special judge of Customs Court, Shakeel Ahmad, has sent him to jail for fourteen days. Meanwhile, The Special Federal Court of Customs Taxation and Anti-Smuggling 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.

customs preventive collects rs 29048 million duty, taxes

LAHORE

M HAYAT

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ollectorate of Customs Preventive has collected Rs29048 million all duty and taxes during

the Qirst eleven months of current Qinancial year Qinancial year 2016-17. As per details, the Collectorate collected Rs8003 million customs duty (CD) during the period under review against the proposed target of Rs8636 million. Similarly, the Collectorate collected Rs13499million on account of sales taxes (ST) during the period

under review against the target of Rs12971 million. On the other hand the Collectorate collected Rs7364 million on account of withholding tax (WHT) against the target of Rs8126 million for the Qirst eleven months FY 2017. Likewise the Collectoarte collected Rs180 million on account of federal excise duty (FED) during the month of May against Rs161 million proposed target for the period. Overall the Collectoarte collected Rs 3335 million duty and taxes during eleven months of Qinancial year 2016-17. It is necessary to mention here that Collector Customs Preventive ZulQiqar Ali Chaudhary directed to use all available legal resources to recover outstanding tax amount from defaulters. Meanwhile, Collector of Customs Preventive ZulQikar Ali Chaudhary has posted new deputy collector at the Customs House. Sources told Customs Today that the collector has posted with immediate effect Palwasha Syed as the Deputy Collector Headquarters.

fBr attaches bank accounts of Safe court sends accused to jail on remand city Authority, recovers rs 3.1 million he Special Court of Customs of cigarettes into America. The

he Federal Board of Revenue (FBR) has attached the accounts of the Safe City Authority and has recovered Rs 3.1 million in the wake of income tax. According to sources of Customs Today Federal Board of Revenue (FBR) has taken this action against Safe City Authority after freezing their bank account in Bank of Punjab Gulberg Branch. FBR has been taking strict action against defaulters these days. During an operation it has frozen the accounts of M/s Newtech Pri-

vate Ltd where ambulances and other high tech equipments are manufactured. The company was nominated in the list of income tax defaulters for not paying outstanding tax amount. FBR has also recovered an amount of Rs50 lakh during this process. Meanwhile in another action day FBR has attached bank account of a citizen Farzand Ali and has also recovered Rs 350,000. His bank account was operational in MCB Kareem block was attached for this purpose. –CB Report

Taxation and Anti-Smuggling has approved a 14-day judicial remand of an accused in a case of cigarette smuggling. The customs investigation team presented an accused, Rameez Iftikhar, before the court of customs taxation and anti-smuggling judge. It requested Judge Shakeel Ahmad of the Customs Court to send him to jail for judicial trial which the court accepted. Sources told Customs Today that accused Rameez Iftikhar was arrested on the charge of smuggling

value of the impounded cigarettes is more than Rs1.3million. Meanwhile, about 17 other cases were also scheduled for hearing on Wednesday. Most of the cases were adjourned without any proceedings. Framing of charges against Rasheed was also adjourned for next week. Final arguments and statements of the parties concerned in a case of smuggling against Rafique Ali were also scheduled for hearing which is rescheduled for next week. –CB Report

fTo postpones hearing of case filed by M/s Al-Haidri Marbles

LAHORE

SAJiD nAwAZ

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he Federal Tax Ombudsman (FTO) has postponed the hearing of a case filed by proprietor of Al-Haidri Marbles against the Regional Tax Office, (RTO) Lahore until the next date. FTO Advisor Mazhar Farooqe

Shirazi heard the case filed by proprietor of Al-Haidri Marbles. The counsel for the appellant argued that the RTO had failed to release the sales tax refund to the appellant for the last two years. He said that RTO collected excessive tax from the company during the last two years. The petitioner approached the officials concerned several times for is-

suance of the refunds, but the RTO officials failed to clear the refunds after the passage of a reasonable time. At last, 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 taxpay-

ers, 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 office for claiming refunds. If appellant provides accurate record, the RTO will issue the refunds after proper assessment, he added.

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Port San Antonio new HQ for museum of science and technology WASHINGTON: Hundreds of artifacts from the San Antonio Museum of Science and Technology are moving to their new home. The move to Port San Antonio could mean thousands of new jobs in the future. “An item like this is pretty rare,” said James Castro, the president and CEO of SAMSAT, as he motions to a switchboard that was used on Air Force One. The artifact is just one of hundreds that will soon be on display at the new headquarters for the San Antonio Museum of Science and Technology. “Artifacts from the technology and science field that go back over 120 years, 150 years at least,” said Castro. Port San Antonio will serve as the museum’s first official home. The port’s board approved the move a month ago.

nigerian ports Authority answers criticism with investment details he Nigerian Ports Authority (NPA) in Lagos says it has cut a deal worth more than USD$86 million with the China Harbour Engineering Company (CHEC) to buy out the NPA’s remaining equity in the Lekki Deep Sea Port. “Both parties have already executed an agreement to this eﬀect,”the NPA said Friday in a statement that defended the management of the authority. The leadership was recently criticized for chasing away much-needed investment in Nigeria’s ports and maritime sector, at a time when President Muhammadu Buhari has focused on improving the ease of doing business in Nigeria. A June 3 media account quoting the Committee of Maritime Professionals (CMP) cited their examples of an unfriendly business environment. They included a deal with the Manila-based International Con-

tainer Terminal Services, Incorporated (ICTSI) at Lekki Port that fell through, and concerns over NPA’s contractual obligations and an impasse with the Integrated Logistics Services Nigeria Limited (Intels). “From our discussions with operators, many other investors in the sector are holding back because of the unfriendly posture of the NPA boss,”the CMP statement said, referring to Hadiza Bala Usman. “Have you seen anyone invest any money at the port since the woman came in? No one will invest if contract terms will not be respected.”The response from NPA details other investments in Nigeria’s ports, including a partnership agreement between Dubai Port World and Josepdam Port Services Limited that is near completion, and ongoing discussions to develop a DP World terminal near Lagos. –CB Report

Ports & Shipping

npA clarifies agencies allowed at ports ABUJA

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he Nigerian Ports Authority (NPA) has clarified that eight agencies of the federal government are allowed to operate and have physical representation at the ports in the country by virtue of a 2011 presidential directive. A statement signed by Mr. Ibrahim Nasiru, a Principal Manager, Public Affairs at the authority listed the eight agencies as Nigerian Ports Authority (NPA); Nigerian Customs Service (NCS); Nigerian Maritime Administration and Safety Agency (NIMASA); Nigeria Police; Department of State Security (DSS); Nigerian Immigration Service (NIS) and Port Health. It stated further that while the National Drug Law Enforcement Agency (NDLEA) is the eighth agency approved to remain at the ports, the directive communicated to the Managing Director of the NPA in a October 26, 2011 memo from the Federal Ministry of

Transportation instructed that: “A methodology which would ensure that only relevant cargoes are inspected by the agency, should be worked out.” The statement explained that other agencies not mentioned in the list above should remain outside the port premises and promised that the authority would work out modalities to ensure the effective and seamless operation of these agencies. While restating the NPA’s commitment to the determination of the President

Muhammadu Buhari’s administration to improve the ease of doing business in the country, the implementation of the Executive Orders recently issued by Acting President, Prof. Yemi Osinbajo, as well as the improvement of conditions under which business is carried out in all ports across the country. The statement solicited for the support of all agencies and stakeholders “towards actualising the noble goal of making Nigeria a destination of choice for all legitimate businesses.”

Tuesday June 20, 2017

port gains expansion ally he Port of Brownsville received welcome news after the 85th legislative session. It could potentially get assistance from a newly established state fund. With the passage of CSHB 4021, ports across Texas will have access to a ship channel improvement revolving fund. “It’s an opportunity for capital funding that could be very important in the future,” said Edward Campirano, director of the Port of Brownsville. “From that perspective, it’s good because there isn’t any program already at the state level to address port infrastructure.”The legislation gives the port a second source of funding for its dredging project. In December, former president Barack Obama signed the Water Resources and Development Act of 2016, qualifying the port’s plan to deepen its ship channel by 10 feet for federal funding. Deepening the channel will allow companies to send in bigger vessels with a heavier cargo. In the past few years, Campirano said the port has seen larger ships more frequently. “If the ships carrying 55,000 metric tons of steel can increase their cargo load to 80,000 metric tons, their cost goes down. –CB Report

india eyes a stake in colombo port WASHINGTON

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avi Karunanayake’s Qirst foreign trip as Foreign Minister, not surprisingly to India, comes at a time when much is in the balance in Sri Lanka’s relations with key stakeholders in the development process. Sri Lanka’s decisions relating to ports and their development have suddenly become a highstakes game of balancing the interests of foreign powers engaged in a race to advance their own strategic interests in the region, on the one hand, with Sri Lanka’s national interest, on the other. After having put up a tough Qight to safeguard Sri Lankan interests (and control) in negotiations with China over Hambantota port and related investments, former Ports Minister Arjuna Ranatunga, as Min-

ister of Petroleum Resources now faces the challenge of handling another political hot potato, the Oil Tank Farm in Trincomalee, where India seeks to extend its grip with projects that will (reportedly) include “A Port, Petroleum ReQinery and other industries.” Again he will be dealing with strategic assets where the outcome of negotiations will have far reaching consequences. Recent developments show that the Colombo Port too has now come into the mix. It may not have been immediately evident to the casual observer, but the Indian proposed“LNG Terminal / Floating Storage RegasiQication Unit (FSRU) in Kerawalapitiya/Colombo,” referred to in the MoU signed during Prime Minister Ranil Wickremesinghe’s trip to Delhi in April, will actually translate into India having a stake in the Colombo Port. This is because of the

nature of LiqueQied Natural Gas-related operations, which require special docking and storage facilities. LNG as a energy source is new in Sri Lanka, and requires infrastructure that is not available at this point. “LNG is natural gas that has been converted to liquid form for ease of storage or transport” according to Wikipedia. “It takes up about 1/600th the volume of natural gas in the gaseous state,” making it “cost efQicient to transport over long distances where pipelines do not exist.” It is shipped in specially constructed vessels and once it reaches its destined market it is converted back into the gaseous state and distributed in pipelines. According to the Indian proposal, it would be used to fuel a (Indian-built) LNGQired power plant in Kerawalapitiya, 12 km north of Colombo. Meanwhile, The 70 acres of MDOT MPA land will be used for

additional cargo opportunities including containerized cargo. This represents the first new land purchase for cargo opportunities by the MDOT MPA since 1987 when land was purchased at the Fairfield Marine Terminal for autos. “Since welcoming our first big container ship through the newly expanded Panama Canal last year, the Port of Baltimore has seen a significant 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.

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Mianwali ASO seizes dates, vehicle valued 5.76m MIANWALI: The Anti Smuggling Organization (ASO) Mianwali has conﬁscated foreign origin dates along with vehicle worth Rs5766000 involving customs duty and taxes Rs6,97,069 during an action. Sources told Customs Today that Deputy Collector Usman Traiq received a tip oﬀ that smuggled items were being smuggled in Mianwali without payment of duty and taxes on which he formed a team. The ASO team intercepted a 10 wheeler Hino truck bearing registration no: K-4803 (Peshawar) which was coming from Peshawar to near Chandni Chowk M.M Road.

Tuesday, June 20, 2017

CUSTOMS BULLETIN

iDp’s revised target almost doubled against allocated target of last year: Amanat ISLAMABAD cuSToMS BuLLeTin reporT www.customsbulletin.com

he Islamabad Dry Port (IDP) will achieve its Customs Duty target during June of Financial Year FY2016-17. The revised target has almost been doubled against the allocated target of last year (June-2015-16). The IDP has assigned the revised revenue target of Rs487million for June FY16-17. The IDP surpassed the revenue collection during May 20 16-17 with an additional amount of Rs46.561million against the collection of the same period of corresponding Financial Year 201516. It generated Rs381.439million during May 16-17 whereas it did Rs328.00million during the same period of corresponding Financial Year 2015-16. This was stated by Assistant Collector Amanat Khan while giving an exclusive interview to Customs Today. He said the Islamabad Dry Port has been facing some trouble during the month of May FY2016-17 due to a 10-day strike of truckers at Karachi but now the loss has been recovered after the end of strike. Now containers start reaching the IDP. During July to May FY2016-17,

the IDP Qiled 2,651 dutyable Goods Declarations (GDs) whereas the IDP processed 2,920 containers during said period, he added. The IDP received Rs3170.00million Customs

Duty (CD) during July to May 201617 against the assigned revenue of Rs2924million, he said. During the 11 months of current Financial Year 2016-17. The IDP surpassed the

revenue target with an amount of Rs246.00million and it got Rs2382million during the same period of corresponding Financial Year 2015-16. The IDP processed 325

dutiable GDs during May FY201617 whereas it cleared dutiable containers during May of 376 numbers. The IDP collected Rs381.439million during May 16-17 whereas it did Rs328.00million during the same period of corresponding Financial Year 2015-16. The IDP went surplus with the collection of Rs46.561million against the collection of the same period of corresponding Financial Year 2015-16, he explained. The assistant collector told CT that during April 16-17, the IDP processed 257 dutiable GDs while it cleared 298 dutiable containers of imported goods. During April, the IDP was generated Rs333.874million whereas it did Rs221.743million during corresponding FY201516. The dry port stayed surplus with an amount of Rs112.11million against the collection of the same period of corresponding FY2015-16. During the month of March 201617, the IDP processed 237 GDs while it cleared 263 imported dutiable containers whereas the port received Rs302.931million CD and the IDP got Rs193.958million during the same period of corresponding FY1516, Amanat Khan further said. The IDP surpassed the revenue collection of March16-17 with an amount of Rs9.15million under the head of CD against the same period of corresponding FY15-16.

SrB expands tax net to producers, production houses KARACHI

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he services provided or rendered by program producers and productions houses are subject to Sindh Sales Tax. DeQinition of the term program is contained in the Sindh Sales Tax on Services Act, 2011, which is now being amended to include rerecording and other post-produc-

tion processes (like dubbing, colouring, sub-titling and captioning). Tax experts at A F Ferguson Chartered Accountants said that by way of another amendment, deQinition of the term ‘franchise’ is being expanded to bring those franchise arrangements into the ambit of SST which do not involve any agreed consideration or fee for such franchise services. The amendment has apparently been made to address the anomaly which arose due to the reason that the relevant rules prescribed by SRB provided for chargeability of SST on franchise services even if

no consideration was agreed whereas deQinition of the term ‘franchise’ only included reference to franchise services provided against a consideration. Despite the above amendment, one can argue (particularly in the light of recent judgement of the Supreme Court in the case of Civil Aviation Authority) that value of service cannot be deemed for levying tax where service is rendered without consideration. Meanwhile, A two-member bench of the Sindh High Court (SHC), headed by Justice Aqeel Ahmed Abbasi, has directed

Commissioner Inland Revenue Appeals Hyderabad to decide the appeal of the applicant within a month. The court ordered this on a constitutional petition filed by M/s Popular Food Industries (Private) Limited against impugned recovery notice issued by Deputy Commissioner Inland Revenue Enforcement and Collection Unit-VII Range-D Zone-II, RTO Hyderabad. During the hearing, counsel for the petitioner submitted that it has been running a manufacturing unit of juices and paying all liable taxes in millions of rupees

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).

properly. However, the Deputy Commissioner Inland Revenue Enforcement and Collection UnitVII Range-D Zone-II, RTO Hyderabad has illegally issued a recovery notice to the petitioner. He further argued that a taxpayer, if aggrieved by an adverse order passed by revenue authorities, is entitled to seek remedy of appeal provided under the relevant statues by approaching the forums of appeal. He said that the recovery proceedings initiated by the respondents department under the circumstances are based on mala fide intention.