Friday, 22 June 2018

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Karachi, Fri June 22, 2018

ISLAMABAD

M ARSHAD

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n a bid to secure the robust revenue collection target for the Oiscal year 2018-19, the Federal Board of Revenue (FBR) is going to recruit almost 3000 to 4000 human resource from grade 1 to 16.

Presently, the FBR and sub departments face huge human resource shortfall; one person is assisting almost three ofOicers as supporting staff

and this state of affairs hinders the departments from showcasing glowing performance regarding revenue collection.

In April this year, the Election Commission of Pakistan had imposed ban on the recruitment of new staff by various departments of the government which now has been lifted. Sources at FBR told Customs Today that serious considerations for starting the recruitment process were underway at different quarters. In this regard, wings and departments including Customs, In-

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land Revenue and others have been given full liberty to initiate and complete the process in a fair and transparent manner. “The preliminary phases of recruitment process like inviting applications from the candidates, their eligibility tests and others have already been completed last year.

In this regard, a third party was hired to evaluate the capacity of the candidates in a bid to ensure transparency and rule of merit; even candidates for the slots of drivers were also given tests through Motorway Police.

FBR to install 100% scanning project on all customs clearing stations

Customs Export recovers Rs6.53m from M/s Ghufran Associates

Customs Preventive holds auction of foreign origin apples

Adjudication-II serves final notices to three defaulter companies

Quetta Customs will remain vigilant with border agencies: Collector Ashraf

FBR is preparing the first draft of 100% scanning project for imported goods | See pAge 02 |

Customs Export recovered evaded amount of taxes and duties of Rs 6.53 m | See pAge 03 |

Collectorate of Customs Preventive on generated Rs5.5 million through auction | See pAge 04 |

Adjudication-II , served final notices to three defaulter Cos named M/s M K Export | See pAge 09 |

The existing environment demands customs department to remain vigilant | See pAge 16 |

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FBR establishes Directorate General of IOCO Friday, June 22, 2018

ISLAMABAD: Federal Board of Revenue (FBR) has established new organization “Directorate General Input Output Coefficient Organization” (DG IOCO) which will look after evaluation of rates of duty drawbacks on exported goods, rates of input output of goods and rates of wastage of goods, meanwhile the organization will also keep close liaison with concerned ministries and departments.

Islamabad

fBR to install 100% scanning project on all customs clearing stations

ISLAMABAD

ISLAMABAD

tARiQ DeRYA

SHAHiD MinHAS

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he Civil Aviation Authority (CAA) is reluctant to provide vigilance desk to customs staff at Departure Hall of NIIA. Customs staff of NIIA is trying to get excess at PIA hangar’s area for vigilance of planes because most of narcotics cases were reported from the hangar area. Assistant Collector Farheen Zahra while talking to Customs Today said, “We have appointed separate force for rummaging of airbuses particularly for boarding to UK, UAE and Saudi Arabia flights.”

She said Civil Aviation Authority (CAA) is not providing checking desk area to Islamabad customs staff at departure side which is very essential to make checking of outgoing accompanied baggage as well as passengers. She had appointed four surveillance officers of superintendents level separately to make sure rummaging and vigilance hundred percent. She said that because having vast area of NIIA, the Islamabad customs required more staff comprising inspectors and sepoys to create balance against Airport Security (ASF) as they have large number of staff compared to Customs staff deputed at NIIA.

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ederal Board of Revenue (FBR) is preparing the Oirst draft of 100% scanning project for imported goods specially from India, Afghanistan and Iran.

Each and every container will be scanned under this project, it is learnt here. Sources told Customs Today that special scanners will be installed on all border crossings, seaports and customs clearing stations. Sources told that around 250 million Euros will be spent on this project, however, the project is being delayed till formation of new government. Meanwhile the PC-1 is being drafted and needed to be approved from the prime minister.

Sources added that FBR will present the draft to prime minister thereafter the Pilot Project will be implemented. Sources further added that with the help of this project, the issues of mis-declaration of goods, the malfunctioning in Afghan Transit Trade and violation and misuse of Green Channel can be resolved. Moreover, 40% of imported goods are cleared on Green and Yellow Channel, however, the misuse of these channels are recently unearthed by Customs Today which caused a serious threat to national security and exchequer. Customs Today extensively covered misuse of green channel smuggling which in-

cAA reluctant to provide vigilance desk to customs staff at niiA

Olicted a loss of Rs 1000 billion on the national exchequer.

Meanwhile, Finance Minister Dr. Shamshad Akhtar said the date for the amnesty scheme would not be extended, and urged the senior FBR ofOicials to keep up efforts for best possible results under the scheme.

She stated this while chairing a high

level meeting at the Federal Board of Revenue (FBR) the other day. The minister also emphasized on effectively utilizing public liaison/advertisement campaign during remainder of the scheme’s validity period to take the scheme to a meaningful and conclusive end. The minister also on this occasion called upon FBR to

come up with measures, particularly those for simpliOication of Oiling of returns and automation that can help enhance revenue generation. She also highlighted the need for installation of quality scanners at all the ports, completely replacing physical checking for customs clearance, a step that she said would help boost revenue.

Rs380b black money turned into white under fBR’s amnesty scheme

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ISLAMABAD

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nder Amnesty Scheme announced by the last government of Pakistan Muslim League-Nawaz (PML-N), around Rs380 billion of black money is turned into white and at least Rs435 billion will also be legalized in near future. OfOicial FBR sources revealed that a renowned businessman also declared his Rs 15 billion in recent

past, while on the other hand after the announcement of Supreme Court of Pakistan that the court will not interfere in the issue of Amnesty Scheme, there is marginable increase being witnessed in turning the black money into white.

Sources said that during the last few days Rs250 billion turned into legal money. Economic experts believe that this Amnesty Scheme will put a positive impact on the national economy, while it will also pave way for a documented economy. Sources

told that FBR will generate Rs 100 billion extra revenue through this Amnesty Scheme. In April 2018, the government introduced the tax amnesty scheme through which people with undeclared income earned before June 30, 2017, on assets within the country would be able to bring them in the tax net by simply paying a Oive per cent penalty. Moreover, people who hold undocumented assets outside the country will also be able to declare their assets under the new amnesty

scheme. Meanwhile, foreign exchange could be brought back to the country by paying a 2 per cent penalty as well. Under the scheme Oixed assets would incur a 3 per cent penalty, to be evaluated at the market value of the asset, which cannot be less than the cost of its acquisition. Foreign liquid assets like cash, securities and bonds held abroad and in local dollar accounts would be declared with a 5 per cent penalty. Dollar account holders in Pakistan who have purchased dol-

lars with undeclared funds can also regularise their funds by paying a 2 per cent penalty. Further, all remittances less than $100,000 per year per person will continue without any questions from any agency regarding the source of funds and enjoy tax exemption. All remittances greater than that amount will enjoy tax exemption but may be scrutinised by the FBR under the new scheme. Furthermore, any new foreign exchange accounts can now only be opened by tax Oilers.

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Court approves bail of accused involved in betel nuts smuggling case KARACHI: The Customs Court has granted after-arrest bail to suspects namely Syed Mahmood Khan, son of Syed Abdul Alla, and Saleem Shah, son of Muhammad Rafiq, who were booked in a case of attempting to smuggle betel nuts and other contraband goods.

On Thursday, the court announced order on bail petitions and directed suspects to submit Rs300,000 each for surety of bail and appear before the court on next date of hearing.

On last date of hearing, counsel for the above-mentioned suspects had filed bail petition and argued that their clients are innocent and were falsely booked in this case and they are ready to face trail; therefore, court may grant their after-arrest bail.

customs court sends suspect to jail booked in gold smuggling

Friday June 22, 2018

Karachi

customs export recovers Rs6.53m from M/s ghufran Associates

KARACHI

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he Customs Court sent suspect namely Muhammad Junaid son of Abdul Sattar Jamal to Central Jail Karachi on judicial remand, who was booked in a case of attempting to smuggle non duty paid gold. Investigation officer produced the above mentioned suspect before the court and informed that at the International Departure Hall, Jinnah International Airport Karachi inspector Airport Security Force (ASF) approached the SPS I/C shift Pakistan Customs with the custody of said passenger holding British passport leaving for Dubai

by Emirates Airlines.

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importer moves SHc seeking release of tyres consignments KARACHI

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/s Saiban International moves the Sindh High Court (SHC), seeking release order of consignments of tyres and change of consignee in its favour. Counsel for the petitioner stated in his constitutional petition that it is engaged in the business of import of tyres and tubes from various countries around the world including from China. In routine course of business M/s Shandong Yougshen Rubber Group Co Ltd, Dongying city, Shaddong province, China offered the petitioner two consignments of tyres which arrived at Karachi Port and were lying there due to withdrawal of the original consignee M/s W.T.A Traders, Karachi against whose name of consignments were originally shipped from China.

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KARACHI

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he Customs Export recovered evaded amount of taxes and duties of Rs 6.53 million from M/s Ghufran Associates and another company M/s Mam Bae Traders. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Ghufran Associates availed undue beneOits and concessions by importing steel scrap misusing the SRO 562. The consignment was cleared through Examiner Allah Baksh on December 11, 2017.

Sources said that the company was allegedly involved in tax evasion of Rs 4.28 million. Investigations were started after detecting the tax evasion and the Customs Export issued a Oinal notice on 1st June, 2018 to deposit the evaded amount within 14 days.

After receiving the notice, the management of M/s Ghufran Associates deposited the evaded amount in the ofOicial account of the Customs Export on June 19th, 2018.

While the management of M/s Mam Bhae Traders also cleared the outstanding amount of Rs2.25 million of duties and taxes. Sources said that M/s Mam Bhae Traders also availed undue beneOits and concessions and avoided paying taxes according to the customs bylaws.

The Customs Export authorities served on it a Oinal notice on 4th

June, while the management of M/s Mam Bhae Traders deposited the evaded amount of taxes on 19th June, 2018.

Meanwhile, The Customs Export recovered evaded amount of Rs 11.75 million from M/s Rubina Associates and M/s Danish Carpets Hyderabad. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Rubina Associates availed undue benefits and concessions by

Sources said that M/s Mam Bhae traders also availed undue benefits and concessions and avoided paying taxes according to the customs bylaws

M/s Berger paints challenges VR no 1278/2018

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KARACHI

M.B RAnA

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he M/s Berger Paints Pakistan Limited Lahore has moved the Sindh High Court (SHC), challenging assessment of consignment of epoxy resin under Valuation Ruling Number 1278/2018 dated 29/03/2018.

Counsel for the petitioner stated in its constitutional petition Oiled on Thursday that petitioner is a sole

proprietor engaged in the import of the epoxy resin as raw material for paint pheno lic resin, polyurethane resin, melamine resin in the brand name of M/s Berger Paint Pakistan Limited and petitioner is seriously aggrieved and highly prejudiced by the actions of the respondents. The respondent is assessing the abovementioned consignment duty and taxes on the basis of the Valuation Ruling No 1278/ 2018 issued by Director of Customs Valuation, despite the fact that the impugned valua-

tion ruling is not sustainable under the law and has accordingly been challenged by the petitioner under Section 25-D of the act, he added.

Citing Chairman Federal Board of Revenue, the Chief Collector of Customs South, Customs Collectorate, the Collector of Customs Customs Collectorate West, Karachi, the General of Directorate General of Customs Valuation as respondents, he pleaded the court to declare that act of the respondents illegal, malaOide and arbitrary.

importing various types of branded juices and gents shoes by misusing the SRO 559 through Examiner Tufail Azeem on August 16, 2017. Sources said that the company was allegedly involved in tax evasion of Rs 5.27 million.

Investigations were started after detection of the tax evasion and the Customs Export issued a final notice on 1st June, 2018 to deposit the evaded amount within 7 days, after receiving the notice.

Stocks stay flat as market lacks triggers istless conditions prevailed at the stock market where the KSE100 index moved in a narrow band to finally close flat with minuscule gain of 2.16 points at 43,682.84.

Dearth of triggers, investors’ lingering holiday mood, concerns over the twin deficits and ceaseless foreign outflows overwhelmed what ever benefit could have accrued as a result

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Customs I&I impounds non duty paid LEDs, TV kits Friday June 22, 2018

Lahore

LAHORE: Directorate of Customs Investigation and Intelligence Lahore has impounded non customs paid LEDs, DVDs from Hall Road and registered FIR against the accused persons.

Sources told Customs Today that during routine checking the customs authorities intercepted a Suzuki pickup LED 3872 and recovered from the van millions of rupees illegally imported LEDs, DVDs and other such items.

The sources said that LEDs, DVDs and other electronic items were being smuggled to Hall Road, electronics goods market, when the customs authorities intercepted the van and recovered the goods.

customs confiscates 500 bottles of alcohol during eid holidays LAHORE

M iMRAn MeHAR

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he Customs team deputed at Allama Iqbal International Airport confiscated as many as 500 alcohol bottles and large number of mobile phones from passengers travelling via different flights during four days of Eid holidays at Allama Iqbal International Airport.

Sources told Customs Today that the customs team conducted operations in different flights coming from different countries.

Most of the passengers were travelling to Lahore from America, Australia, England and other European countries. Operations were conducted in flights coming from London to Lahore,

Adjudication-i recovers Rs8.59m from Mas traders ustoms Adjudication-I issued recovery and final notice to two defaulter companies and recovered Rs 8.59 million from M/s Max Traders. Sources told Customs Today that defaulter company M/s Max Traders got cleared a consignment of electronics accessories including drill machines, parts of drill machines, LED TVs, picture tubes and other items on February 13, 2018 and evaded a tax amount of Rs8.59 million.

After the scrutiny, the Collector Customs Adjudication-I Shazia Qureshi served a show cause notice to the company on 27th April, but it failed to clear the outstanding tax amount and requested time to clear the outstanding dues. After one month, the collector Customs Adjudication-I issued a final notice to the company on 28th May, 2018. After receiving the notice, the company deposited Rs 8.59 million in favor of the Customs Department on 14th June, 2018. –CB Report

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Turkey to Lahore, New York to Lahore and Sydney to Lahore.

Customs took action in Pakistan International Airlines (PIA), Turkish Airways and Gulf Air flights. During actions in these flights, customs staff recovered 500 bottles of alcohol. Mobile phones were also confiscated from different passengers while Customs allowed all passengers to go after confiscation of alcohol bottles from their possession. It is necessary to mention here that Customs has started strict checking of the luggage of the passengers specially coming from European countries. Smuggling attempts are being foiled by the customs authorities. Several attempts of smuggling of foreign currency and mobile phones accessories and other relevant items have also foiled by the customs teams.

customs preventive holds auction of foreign origin apples LAHORE

M HAYAt

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ollectorate of Customs Preventive on generated Rs5.5 million through auction of non-duty paid apples on Thursday.

Earlier Customs Preventive cancelled the auction as there were only a few purchasers that were interested in auction of the apples and they gave fewer rate against apples of worth Rs8.1 million. Highest rate that was announced by a purchaser was only Rs3.2 million which was far less than the actual rate of the apples. It is necessary to mention here that AntiSmuggling Organization has seized a huge quantity of smuggled apples worth Rs8.1 million after receiving credible information. The ASO team supervised by Deputy Collector ASO Mohammad Moazzam Raza and comprising Superintendent Agha

customs i&i raids godown, recovers indian spices worth Rs15m

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irectorate of Customs Intelligence and Investigation raided a godown located near Koral Ghati and recovered huge quantity of Indian origin species.

The market value of recovered species is Rs15 million.

Sources told Customs Today, that Director Customs I&I Rubab Sikandar received credible information that huge quantity of Indian origin species is dumped in Koral Ghati.

She immediately constituted a team under the supervision of Deputy Di-

rector Usman Tariq. The customs team included Superintendent M. Sarwar, Intelligence OfOicer ZulOiqar Ali Dogar, Sohail Murtaza, Agha Sultan Haider, Hamid Babar. Customs team raided a godown belonged to Akhtar Khan and recovered 1000 packets of Indian origin species (black chillies and zeera). The owner of the godown wanted to supply these species to Akbari Mandi. Customs team seized all the species and after registering a case started further investigations. –CB Report

Qadeer, Inspectors Nasir Saeed, Azam Wattoo, Sajjad Bukhari, Amjad Khan intercepted a trailer bearing registration no. TLE-438 was coming from Quetta near Interchange Shera Kot. On examination, the vehi-

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cle was found to be loaded with smuggled/non-duty paid New Zealand-origin apples weighing 20 tons. A case has been registered and further investigations are still in progress till the Oiling of this report.

court sends suspects to jail booked in tax evasion he Customs Court sent suspects namely M Najib Markatia, owners/ proprietor/ partner of M/s Paradise Ecommerce Solutions and RaOiq Ahmed Siddiqui, clearing in-charge of M/s Paradise Ecommerce Solution to Central Jail on judicial remand, who were booked in a case mis-declaration and evasion of duty and taxes to the tune of Rs28,54,943.

Investigation OfOicer produced the above mentioned suspects before the court and informed that above mentioned importer imported a consignment and declared

it as magazines/ printed material 51 packages 690 kilograms gross weight from M/s Darlington Postal Company USA by EK-600 on 19-52018. He argued that the importer got delivery order and gate pass dated 19/05/2018 duly issued in the morning of May 19, 2018 by the ground handling agent M/s Gerry’s Dnata. The aforesaid shipment was allowed gate out by M/s Gerry’s Dnata and the Preventive staff posted at ICG Gate in terms of standing order and the delivery of the instant shipment was under process at about 4.30 pm. –CB Report

fto seeks record to conclude tax refund case

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LAHORE

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he hearing of tax refund appeal entered into the Oinal phase as Federal Tax Ombudsman (FTO) sought record from the parties. FTO heard appeal Oiled by proprietor of M/s Arslan Rubber Works, against Regional Tax OfOice

(RTO-II), the same appeal was postponed 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 RTO-II had failed to release the tax refund of the last two years claimed by the company. He said that the RTO-II collected excessive tax during the last two years. He approached the commissioner con-

cerned many times for issuance of refunds but the RTO-II officials did not pay the refunds after the passage of reasonable time. At the end, the company decided to approach the FTO, seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said that CRTO should refund the excess collection in

wake of taxes by the end of financial year but the situation is quite otherwise. Delay in issuance of refunds put burden on the taxpayers, he said, adding that the RTO-II Lahore should make audit of the cases and release the extra amount collected by it from the taxpayer.

After hearing the arguments from both sides, FTO advisor sought record to decide case.

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KARACHI

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Friday, June 22, 2018

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he accused Customs ofOicials who were acquitted by the court in ISAF/NATO containers mega scam are alleged to be still indulged in same practice of clearing the containers through TP, opening up seals of those containers enroute to Lahore or other ports of the country and replacing the smuggled goods with other items. These accused were acquitted as customs prosecution willfully weakened the case by not producing evidence/witnesses against the accused before the court. Genuine importers have asked the NAB to launch investigation against Customs staff including Noor Akbar Mahar, accused in the ISAF/NATO missing containers case, in a similar TP mega smuggling scam.

According to details, the court announced judgment of case no 72/2011 against suspects namely Noor Akbar Mahar, son of Ghulam Akbar Khan; Syed Arshad Ali, son of Syed Shamshad Ali; Mehfooz Ali Khan, son of Masood Ali Khan; Sardar Amin Farooqui, son of Jalil Ahmed; Munir Ahmed Brohi, son of Hassan Khan; A. Aziz Umrani, son of Muhammad Mithal; Muhammad Abbas Khan, son of Noor Ahmed Khan; Fareh Shoukat, son of Shaukat Ahmed; Shoukat Hussain, son of Muhammad Hussain; Muhammad Yasin, son of Gulab Khan; Shahid Rauf, son of Muhammad Yaseen Khan; Saeed Babar, son of Faqee Muhammad and Muhammad Irfan, son of HaOiz Abdul Majeed. According to the verdict, during the investigation of the ISAF/NATO containers scam conducted by the probe committee of FBR, pursuant to the directions of the Supreme Court, initial investigations were conducted which transpired that Afghan Transit Trade consignments were got cleared by clearing agents as per notiOied procedure, the consignments were cleared from MCC Appraisement. During the investigation, it revealed that all consignments were Oirst cleared in the garb of Afghan Transit Trade

and then were smuggled and disposed of inside Pakistan, causing colossal loss of revenue to the state exchequer, it added.

The court further observed that “from evidence brought on record it is clear that complainant had no personal knowledge about commission of the offense by the accused persons nominated in this case and he simply signed the draft copy of FIR received from probe committee FBR, ofOice and lodged the FIR on the instruction of the probe committee, the evidence of complainant is of totally no use for the prosecution as the witness has himself no knowledge of the crime allegedly committed by the accused persons.”

It is signiOicant to note that only NLC was responsible to transport the consignments to Afghanistan but from the record it appears that they failed to perform their duty and no investigation was conducted from the NLC ofOicials who were responsible for transportation of the consignments to Afghanistan. Even the drivers of the vehicles engaged in transportation who played key role in the alleged crime were not nominated as an accused in this case either by the probe committee or by the complainant, investigation ofOicer even failed to collect the import documents particularly GD which could show the consignments was imported by Afghan Importers, in absence of the GD the charge cannot be proved against any of the accused who are customs ofOicials/staff and clearing agents, there is absolutely no evidence against the accused persons present in court, therefore, prosecution miserably failed to prove its case against them”. In view of these Oindings and after evaluation of the summary evidence adduced by the prosecution, the court concluded it had been established beyond any reasonable doubt that the prosecution had miserably failed to prove its case against the accused, who were accordingly acquitted of the charge. It is pertinent to mention here that the then Chief Justice Iftikhar Muhammad Chaudhry had taken up the case relating to import of contraband items under the

garb of food supplies meant for the International Security Assistance Force (Isaf) in Afghanistan and ordered the FBR chairman and the Federal Tax Ombudsman to submit comprehensive reports on the steps taken to implement recommendations made earlier by the FTO. In his report on Jan 19, 2011, Dr Shoaib Suddle, the then FTO, had put the recoverable amount at Rs54.73 billion accumulated over the past four years owing to pilferage of containers that entered the country in the garb of Afghan Transit Trade (ATT). The FTO had also recommended in his report to give exemplary punishments to the accused customs ofOicials.

Now all those accused customs ofOicials including Noor Akbar Mahar are acquitted by the court and they are still providing a helping hand to the smugglers of banned items. These ofOicials are clearing those containers through TP and replacing the smuggled goods enroute to other cities.

Customs Today has received a video in which it can clearly be seen that a person was opening up the seal of a container which was cleared through TP from Karachi ports and meant to be delivered to other cities.

Then the same person skillfully re-sealed the container using the same seal that was removed by him. This tactic was only being used in Pakistan as there was no chance of re-using the same seal in other countries.

This also shows that this is not a single case of TP smuggling but it is a pre-planned tactic being used by smugglers in connivance with customs staff.

Customs Today extensively raised the issues of misuse of green channel, yellow channel and TP facilities and Chief Justice Mian Saqib Nisar recently took notice of green channel smuggling and ordered the relevant authorities to submit reply within 10 days. Genuine importers who are suffering huge losses at hands of these corrupt ofOicials including Noor Akbar Mahar appealed to the Supreme Court and the NAB to take prompt action against these culprits of ATT mega scam who are still ‘involved’ in smuggling of banned items through green channel and TP.

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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

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Loan of $500m from chinese bank

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he government has signed another commercial loan programme of $500 million with the Industrial and Commercial Bank of China, bringing the total loan it obtained from the bank to $1 billion just in three months. Last month, the government took a total of $704 million loans, taking foreign borrowings to new heights of $6.6 billion just in seven months of the current fiscal year.

Reports suggest the external loans could cross $10 billion mark for the second consecutive year. As the elections are nearing, the speed of taking loans has been unwittingly revved up and there seemed no speed breaker to stop it. As the external debt and liabilities are $90 billion mark, the volume of foreign loans is now equal to 86 percent of the budgetary allocations which were approved by parliament in June last year. After investing in billions of dollars projects under the China Pakistan Economic Corridor, China has emerged as the single largest loan provider, lending a total of $1.6 billion during the last seven months. The money is equal to one-fourth of the total foreign loans the country has received during the period. Pakistan also received another $610 million under the head of project financing during the current fiscal year. The government took the loan from the Chinese bank to support its depleting foreign exchange reserves and no one knows how the government will deal with the financial catastrophe when it will have to return the loans. The debt servicing has already been a problematic area and accepting loans from one source or the other is adding insult to injury. In the absence of increase in the industrial output, it is not a rocket science to understand that the economy is heading toward disaster.

Earlier, the government had depreciated Pakistani rupee, which not only increased the volume of loans, but inflation in the country. On the other hand, the move also opened a Pandora’s Box to fight corruption, money laundering and smuggling at the same time. It is yet to be seen how the loan of $500 million will prove beneficial for the economy, but a snowball of debt servicing cannot be ruled out in the near future.

Unfortunately, the State Bank of Pakistan sometime becomes part of problem than the part of solution.

challenge of trade deficit T

LAHORE

cuStoMS BuLLetin RepoRt www.customstoday.com

he latest unofficial data puts the trade deficit of the country at record level of $30 billion during the first 11 months of the current fiscal year which is at least 42 percent more as compared to the deficit during the same period of the last financial year.

Though exports have picked up during the last few months, but declined by three percent during the year to $18.5 billion. On another note, the import volume has gone up by 21 percent to $48.5 billion, pointing out a bitter fact that imports are over two-and-a-half

times more than the exports.

Unfortunately, Pakistan relies on the export of textile products most of the time without giving a second thought or importance to value added goods produced by various industries. The second most thrust is on the export of edibles such as rice, wheat, fruits, etc which are desperately required within the country. In a bid to enhance exports to earn foreign exchange, rebate is also offered to the exporters of food items, which shows deep seated flaws in the centers which devise export policies.

Lack of interest of the government officials in the promotion of business also plays a

role in the trade woes of the country. When the oil prices fell in the international market, it was hoped the country would benefit from the import of cheap oil, but the policymakers of this country are habitual in missing the bus. The world is shifting from hydro power electricity to renewable energy, including solar energy.

Pakistan has the potential to produce not only solar panels, but also voltaic cells to become volume leader in the international market. Pakistan’s cottage industry also has strong base and can play a leading role in the economic development of Pakistan and enhancement of exports if en-

couragement by the government. However, every government agency is with a mission to foil every attempt to stimulate the industrial sector. The trade deficit can be minimized if agriculture sector is provided with concessions. Instead of exporting food items, agriculture industry should be encouraged to produce finish products. The new budget is due in weeks and it is a good opportunity for the government to put the country on the right track. The growing trade deficit eats up all the economic gains and the situation could only be improved by enhancing the export of value added goods.

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Customs stopped from taking action in case of full payment ISLAMABAD: Two Federal Service Tribunal benches comprising Members Syed Rafique Hussain Shah and Dr Nazir Saeed dated in office hearings of service matters with submission of record.

The bench dated in office hearing of ‘implementation’ and ‘increment’ complaints filed by FBR employees M Waheed, Anjum Rasheed, and others.

Syed Rafique Hussain Shah and Dr Nazir Saeed adjourned hearing of cases filed by Waseem Iqbal, Anjum Waheed, Said Hussain Abbasi and Abdul Sattar.

Waseem Iqbal, Anjum Waheed, and Said Hussain Abbasi had filed complaints on ‘implementation’ while Abdul Sattar had submitted a complaint about ‘Withholding of three increments’.

pcA detects Rs10.54m tax evasion

by M/s Badami garments & export KARACHI

cuStoMS BuLLetin RepoRt www.customsbulletin.com

he Directorate of Customs Post Clearance Audit detected duties and tax evasion of Rs 10.54 million by M/s Badami Garments and Export, Karachi, it is learnt here. Sources told Customs Today on Wednesday that M/s Badami Garments and Export imported a consignment of fabrics printed machines, cotton folding machines and sewing , embroidery machines, and got it cleared from the PICT Karachi vide GDs on January 26, 2018 by paying customs duty very low at 6 percent after claiming the benefit of the SRO 567/2007. However, the subject items were correctly classifiable under the PCT 6547.2507 attracting customs duty at 10 percent and income tax at 8 percent; thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 10.54 million. The goods were cleared

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Friday June 22, 2018

National

Adjudication-ii serves final notices to three defaulter companies C

KARACHI

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ustoms Adjudication-II , served Oinal notices to three defaulter companies named M/s M K Export, Karachi, M/s Salam Chemicals and M/s Glorious Marble Industry, Karachi. Sources told Customs Today that M/s M K Export, Karachi was allegedly involved in tax evasion. The company imported different kinds of chocolates, confectionery items including bubbles, sweets and various other items on February 12, 2017. The consignment was cleared by examiner Majid Hussain Bhatti, by using wrong PCT heading.

After careful investigations, the Customs Adjudication-II issued a Oinal notice to the company on 19th June, 2018. According to the notice M/s M K Export directed to pay Rs 4 million within 14 days to avoid stern action. Source said that another company M/s Salam Chemicals cleared a consignment of powder form chemicals (used dry in sea foods) on January 22, 2018 and evaded tax amount of Rs3.98 million. Collector Customs Adjudica-

tion-II Tahir Qureshi also issued a Oinal notice to the company. The adjudication authority ordered the company to pay Rs3.98 million within 14 days.

Meanwhile, Customs Adjudication-II served final notice to three defaulter companies including M/s Maryam Knitwear, M/s Sultan Jali Works and M/s Wadood Associates, Karachi. Sources told Cus-

toms Today that M/s Maryam Knitwear was allegedly involved in tax evasion. The company imported color matching machines, parts of folding machines, digital door lock and so many other items , on December 22, 2017. The consignment was cleared by the Head Examiner Murtaza A. Khan, and used the wrong PCT heading. After careful investigation, the Customs

Adjudication-II issued a final notice to the company on 29th May, 2018. According to the notice, defaulter company was fined Rs 5.48 million which were payable within 14 days. Source said another company M/s Sultan Jali Works was cleared for a consignment of iron scrape and used grills on Dec 12, 2018 and evaded a tax amount of Rs 3.64 million.

‘Date for amnesty scheme not to be extended’ by appraiser Wahid Ali Bukhari.

Sources said that the importer violated the provisions of Section 68 (2A) of the Customs Act-1969, Section 8 read with Section 68 of the Sales Tax Act-1990 and Section 58 of Income Tax Ordinance 2001 punishable under clauses (68) and 248 of Section 392(2) of the Customs Act-1969, Section 97 of the Sales Tax Act-1990 and Section 33 & 84 of Income Tax Ordinance 2001 and Section 4-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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inance Minister Dr. Shamshad Akhtar said the date for the amnesty scheme would not be extended, and urged the senior FBR ofOicials to keep up efforts for best possible results under the scheme.

She stated this while chairing a high level meeting at the Federal Board of Revenue (FBR) the other day.

The minister also emphasized on effectively utilizing public liaison/advertisement campaign during remainder of the scheme’s validity period to take the scheme to a meaningful and conclusive end.

The minister also on this occasion called upon FBR to come up with measures, particularly those for simpliOication of Oiling of returns and automation that can help en-

hance revenue generation. She also highlighted the need for installation of quality scanners at all the ports, completely replacing physical checking for customs clearance, a step that she said would help boost

revenue. Members of Tax Reforms Committee and senior ofOicials of the FBR attended the meeting.

Earlier, during the meeting Chairman FBR Tariq Pasha briefed the minister about the progress of Tax

Amnesty Scheme and the current state of revenue generation.

He said moral suasion had been the hallmark of FBR’s drive to encourage people to declare their assets at home and abroad and contribute to the national exchequer.

He said overall there had been positive response to the amnesty scheme and it would have signiOicant bearing on revenue generation.

The chairman shared with the minister details about the task carried out by the Tax Reforms Committee over a period of time, making recommendations and proposals for reformation of the tax regime.

He also apprised her about the working of the High Powered Implementation Committee which has seen to it that recommendations for tax reforms are prioritized in terms of their utility and implemented in letter and spirit.

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FBR establishes Directorate General of IOCO Friday June 22, 2018

National court approves interim challan in betel nuts smuggling case

ISLAMABAD: Federal Board of Revenue (FBR) has established new organization “Directorate General Input Output Coefficient Organization” (DG IOCO) which will look after evaluation of rates of duty drawbacks on exported goods, rates of input output of goods and rates of wastage of goods, meanwhile the organization will also keep close liaison with concerned ministries and departments.

iHc seeks record of four cases filed against customs Appellate tribunal, AtiR

KARACHI

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ISLAMABAD

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he Customs Court approved interim charge-sheet against suspect namely Abdul Ghani son of Muhran Gul, who was booked in a case of attempting to smuggle contraband betel nuts etc. Investigation Officer Sadam Hussain submitted interim charge-sheet and informed the court that on a credible information, a team of customs department found a truck bearing registration no C-3150 parked inside the compound of City Railway Station Karachi and one person standing beside the truck, who introduced himself as Abdul Ghani.

He was asked about the goods loaded in the truck to which he stated that his cousin namely Habib Ullah is working as a cleaner on the said truck and he came with him from Quetta as a helper of driver namely Abdul Wali and he is not aware of the loaded goods.

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Sindh excise achieves 95pc revenue target he Sindh Excise, Taxation and Narcotics Control Department has recovered Rs59,420,933 millions in ten months from July 2017 to May 2018, during current fiscal year while in the same period during last fiscal year Rs52,212,932 millions were recovered.

“So far the Excise Department Sindh has got 95 percent target in eleven months that is a great achievement.”This was stated by Excise and Taxation Secretary Abdul Haleem Shaikh during a meeting at his office. ET&NC Director Generals Shabir Ahmed Shaikh, Shoaib Ahmed, Siddiqui and other directors also attended the meeting. Shabir, while briefing the meeting said that Rs6,430,207 millions were recovered in term of Motor Vehicle Tax, Rs46,194,352 millions.

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he Islamabad High Court directed parties to submit record of the cases while hearing four customs matters Oiled against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue. A citizen, M Anwar Khan had Oiled four customs references against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue.

IHC division bench comprising Justice Aamer Farooq and Justice Mohsin Akhtar Kiyani was hearing the matters. Meanwhile, another bench also dated in ofOice hearing of cases submitted by M/s Pakistan Tobacco Company Limited (PTCL).

The bench also heard another tax matter Oiled by M/s Pakistan To-

bacco Company Limited. The appellant Oiled challenging a show-cause notice issued by the Large Taxpayers Unit, Islamabad. M/s Pakistan

Tobacco Company Limited had contested show-cause notices issued by the Oield ofOices of Federal Board of Revenue. According to details, M/s

Pakistan Tobacco Company Limited had challenged recovery of issued to it in head of outstanding sales tax by the LTU, Islamabad.

customs court grants bail to suspect booked in HSD smuggling case T

KARACHI

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he Customs Court granted bail to suspect namely Abdul Hussain son of Abdul Sattar against the surety of Rs50,000, who is booked in a case of attempting to smuggle nonduty paid 4500 liters High Speed Diesel (HSD). On Tuesday, counsel for the suspect filed bail petition and argued that accused is fisherman by profession and sue to earn livelihood by fishing through boating in the deep sea. He further argued that the recovered 4500 liters of HSD was meant for the fuel required for the boat as the crew members spend two months in the deep sea.

He argued that accused was not found bringing in or taking out of Pakistan the goods in question therefore, alleged of-

fence is punishable with six years imprisonment and as such does not fall within the prohibitory clause of section 497 cr pc hence accused are entitled to

grant of bail. Ghulam Mustafa, Special Prosecutor for the state vehemently opposed the contention raised by the counsel for the accused and has contended

that the applicant is intercepted along with boat loaded with 4500 liters of Iranian smuggled HSD, therefore, bail application may be rejected.

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Customs Wagha foils bid to smuggle huge quantity of Indian cloths & jewelry LAHORE: The Customs Appraisement team deputed at Wagha border foiled an attempt of smuggling of huge quantity of Indian cloths and other household goods.

Sources told Customs Today that on suspicious movement, customs team intercepted three passengers at Wagha border and checked their luggage.

During search they found that Indian passengers were trying to smuggle big quantity of cloths, jewelry and other items to Pakistan.

Passengers identified as Rehmat, Eid Ullah and a woman Salma. Customs team confiscated the luggage and allowed passengers to go home.

pcA detects tax & duty evasion of Rs14.57m by Rohail Marble & export cos KARACHI

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he Directorate of Customs Post Clearance Audit detected duties and tax evasion of Rs 14.57 million

by M/s Rohail Marble and Export Company, it is learnt here. Sources told Customs Today that M/s Rohail Marble and Export Company, Karachi imported a consignment of cutter blades, floor tiles machines and Tiles polish chemicals, got it cleared from the PICT Karachi vide GDs on January 27, 2018 by paying customs duty low at 8 percent after claiming the benefit of the SRO 557/2007. However, the subject items were correctly classifiable under the PCT 3365.2501 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the

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company evaded/short-paid Rs 14.57 million. The goods were cleared by Appraiser Saqib Wasi. Sources told that the importer violated the provisions of Section 65 (7-A) of the Customs Act-1969, Section 27 read with Section 36 of the Sales Tax Act-1990 and Section 77 of Income Tax Ordinance 2001 punishable under clauses (25) of Section 26(8) of the Customs Act-1969, Section 48 of the Sales Tax Act-1990 and Section 79 of Income Tax Ordinance 2001 and Section 6D of the Sales Tax Act-1990 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. Source said that currently PCA is investigating four more companies data which includes M/s Raja Fertilizer and M/s K B Traders, after scrutiny these cases will be send concerned adjudication departments.

National

Appellate tribunal directs counsels to conclude arguments on petition filed by kohinoor traders

court issues arrest warrants of accused involved in Acs case LAHORE

M iMRAn MeHAR

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he Special Federal Court of Customs Taxation and Anti -Smuggling issued arrest warrants of the accused in a case of non-duty paid air conditioners smuggling case. According to details the customs court has issued warrants of the accused Majeed Khan.

Earlier, the Anti-Smuggling Organization (ASO) had seized huge quantity of smuggled air conditioners in an enforcement activity. Sources told that Collector Faiz Ahmad received credible information regarding movement of smuggled goods. The additional collector advised Deputy Collector ASO Muhammad Moazzam Raza to tighten the vigilance. The customs staff of ASO intercepted Mazda truck bearing registration no. LXK 4554 loaded with foreign origin 17-numbers indoor units & 11 number outdoor units of air conditioners. During investigations it came on record that another huge quantity of similar foreign origin air conditioners have been stored in a godown of M/s Tanveer and Company situated at Mohallah Salamat Pura near Orange Train Station Daroghawala and Mominpura, Lahore.

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ustoms Appellate Tribunal directed counsels to conclude arguments on next date of hearing in a customs reference filed by M/s Kohinoor Traders.

Customs Appellate Tribunal’s bench comprising member tribunal, Syed Muhammad Anwar heard the case being contested against Directorate General of Investigation and Intelligence, Islamabad.

Earlier, the bench had dated in office hearing of the matter for post Eid hearings after directing parties to submit case related documents. The bench had also heard another customs matter filed by M/s Five Star Trading. Hearing of this matter was adjourned for further arguments. Counsels from M/s Kohinoor Traders, M/s Five Star Trading appeared before the bench and demanded time from the bench for finalizing preparations for the case.

M/s Kohinoor Traders, M/s Five Star Trading had filed cases against Directorate of Intelligence and Investigation, Islamabad.

Customs Appellate Tribunal’s

Friday June 22, 2018

Member Technical, Ziaddin Wazir heard the cases of Raja Nabeel, Waqas Enterprises, Arshad Khan and Musawir Shah had filed the cases. Raja Nabeel had filed the cases against Directorate of Intelligence and Investigation, Islam-

abad. Other three appellants had filed their cases against Model Collectorate of Customs, Islamabad.

Last week he had accompanied in hearing some cases, however, this time he would hear cases alone as single bench.

SHc seeks comments on petition seeking release of consignments

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KARACHI

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he Sindh High Court (SHC) issued notices to the Customs department, deputy attorney general and directed them to Oile their respective para wise comments on a constitutional petition Oiled by M/s F.A.S Enterprises seeking release order of its consignments of optical frames, wrist watches and other miscellaneous goods detained by customs ofOicials.

Directives were issued by a twomember bench hearing. During the hearing, counsel for the petitioner stated that petitioner imported a

consignment of assorted items including optical frames, wrist watches and other miscellaneous goods and Oiled Goods Declaration (GDs) dated May 5, 2018, declaring the consign-

ment strictly as per import documents and at their transaction value.

Counsel further argued that in addition to aforesaid consignment imported by the petitioner, the respon-

dents have also detained the two more consignments, consisting of similar miscellaneous goods, and detention/hold of all three consignments is illegal and tainted with malice and greed. Counsel argued that detention of the petitioner’s goods by the respondents is altogether illegal, discriminatory and in excess of jurisdiction conferred under the law. Citing Secretary Revenue Division, chairman Federal Board of Revenue, Aamir Rasheed Shaikh, Director Directorate of Intellectual Property Rights, Deputy Director Directorate of IPR and Collector of Customs Collectorate Port Muhammad Bin Qasim.

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World Customs

Limited Cabinet reshuffle in Saudi Arabia

Manama: Saudi King Salman Bin Abdul Aziz has partially reshuffled the government, giving Prince Badr Bin Abdullah Al Saud the portfolio of the newlyestablished ministry of culture after extracting it from the Ministry of Information and Culture.

All activities related to culture will be transferred to the new ministry in a move that highlights the growing significance culture is gaining in the kingdom. The royal orders early saw the appointment of Ahmad Al Rajhi Minister of Labour and Social Development.

Friday June 22, 2018

china’s tariffs on uS oil would disrupt $1b monthly business

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turkey’s current account deficit at $5.4B urkey’s current account deficit hits $5.43 billion in April, marking an increase of $1.7 billion, year-onyear, Turkish Central Bank (CBRT) announced. According to the CBRT’s report on balance of payments, the country’s 12-month rolling deficit reached nearly $57.1 billion in April.

“This development in the current account is mainly attributable to $1,817 million increase in the goods deficit, recording net outflow of $5,462 million and $279 million increase in primary income deficit to $1,489 million,” the bank said. Meanwhile, services surplus recorded a net inflow of $1.47 million, up by $375 million, year-on-year, in April. Travel, a major item under services, recorded a net inflow of $1.12 million in April, increasing by $366 million compared to the same month in 2017, the bank added. –CB Report

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hina’s threat to impose duties on US oil imports will hit a business that has soared in the last two years, and which is now worth almost $1 billion per month.

In an escalating spat over the United States’ trade deOicit with most of its major trading partners, including China, US President Donald Trump said last week he was pushing ahead with hefty tariffs on $50 billion of Chinese imports, starting on July 6. China said Friday it would retaliate by slapping duties on several American commodities, including oil. Investors expect the spat to come at the expense of US oil Oirms, pulling down the share prices of ExxonMobil and Chevron by one to two per cent since Friday, while US crude oil prices fell by around

central Bank confident of averting rate hike fallout

Oive per cent. “This escalation of the trade war is dangerous for oil prices,” said Stephen Innes, head of trading for Asia/PaciOic at futures brokerage OANDA in Singapore.

“Let’s hope cooler heads prevail, but I’m not overly optimistic,” he added.

The dispute between the United States and China comes at a pivotal time for oil markets. Following a

year and a half of voluntary supply cuts led by the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC), as well as the non-OPEC producer Russia, oil markets have tightened, pushing up prices. The potential drop-off in American oil exports to China would beneOit other producers, especially from OPEC and Russia.

Deal to boost opec oil output ‘inevitable’, says Saudi minister

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t’s “inevitable” that OPEC and its allies will agree to boost oil output gradually at their meeting in Vienna next week, said Saudi Arabia’s Energy Minister on Thursday.

“As usual we will do the right thing,” Khalid Al-Falih told reporters in Moscow. “I think we’ll come to an agreement that satisOies most importantly the market.” Russia and Saudi Arabia, leaders of the deal between the Organization of Petroleum Exporting Coun-

tries and other major oil producers to curb output and boost prices, will discuss their next move in Moscow as the two nations face off at the soccer World Cup. Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, along with Al-Falih and his Russian counterpart, will discuss how to boost oil production while maintaining their petro-alliance and overcoming opposition to an increase from other OPEC members. –CB Report

he People’s Bank of China, the central bank, is now more conOident about using Olexible monetary policy tools to cope with an impending US funds rate hike later this week, without disturbing the predetermined Oinancial deleveraging pace and interest rate reform, said economists.

Monetary tightening measures are likely to continue in China to curb credit risk, given the recent moderate growth of money supply and bank lending. The monetary policymakers, however, should no longer be nagged by debating whether to follow the US steps, as domestic economic conditions and the still-high debt ratio will continue to be the top concern, they said.

The financial data for May, released on Tuesday by the PBOC, showed that the broad money supply, or M2, witnessed a year-onyear growth rate of 8.3 percent,

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lower than the expected 8.5 to 8.8 percent. Total social financing, a broad measure of credit and liquidity in the economy including off-balance sheet forms of financing, dropped sharply to 760.8 billion yuan ($118.80 billion) last month from 1.56 trillion yuan in April. Yuan-denominated bank lending increased by 1.15 trillion yuan, compared with 1.18 trillion yuan in April, the PBOC said. All the data pointed to a relatively tightening monetary environment, which can accelerate financial deleveraging and curb asset bubbles especially in the property sector, said Yang Weiyong, a professor at the University of International Business and Economics in Beijing.

The country’s general interest rate level still has much room for improvement, especially in marketoriented pricing so as to enable the flow of more financial resources into more efficient production to sustain economic restructuring reforms, according to Yang.

iran, iraq Start oil Swap ran’s ministry of petroleum announced that road tankers carrying oil from Iraq’s Northern city of Kirkuk had crossed the Iranian border and were already delivering oil to reserves in the Western Province of Ilam.

“By setting up relevant facilities and a pumping house, Iraqi’s Kirkuk crude oil will be pumped from Darresh Shahr to Tang Fanni and then to Kermanshah, Shazand, Tehran and Tabriz reOineries,” Managing Director of Iranian Oil Pipelines and Telecommunications Company (IOPTC) Abbasali Jafarinasab said.

Under the swap deal inked be-

tween Iran and Iraq, Iraqi crude oil will be transported by tanker trucks to Iran to supply a part of feedstock of the reOineries.

The swap deal between Iran and Iraq was agreed at the end of 2017, under which Iraq is about to truck 60,000 barrels per day (bpd) of crude oil to Iran. Iraq would cover all transport costs. Iran will accordingly deliver equal volumes with the same quality to Iraq’s clients through its Kharg terminal in the Persian Gulf. The project is expected to upend Iraq’s oil export route from Kirkuk via Turkey and the Mediterranean. –CB Report

Russia & india ditching uS dollar in defense deals

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oscow and Delhi are seeking to bypass US sanctions by using the rupee and the ruble in facilitating military deals, according to Indian daily, the Economic Times.

The paper reports that US sanc-

tions are hampering $2 billion in defense deals between Russia and India, as payments are getting stuck. The countries are seeking to avoid this by switching to settlements in domestic currencies and ditching the greenback. India is one of the largest buyers of military equipment from Russia. Since the 1960s, the countries have signed military contracts worth

$65 billion. Now, trade deals between the countries are estimated at $12 billion. India is ready to purchase Russia’s S400 air-defense system in a $5-billion deal. However, the sale is being heavily opposed by the United States, which is also trying to stop a similar deal between Russia and Turkey. Defense deals between Russia and India are currently denominated in

US dollars. The countries have discussed various ways of bypassing US sanctions, including payment in third currencies like the Singapore dollar. Talks are being conducted between Vijaya Bank and Indian Bank on the Indian side and Russia’s top creditor Sberbank. An option that is now ruled out is paying in US dollars to non-sanctioned Russian entities.

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Port of Oakland, SSA Terminals Agree New Lease to 2027 The Port of Oakland has reached an agreement with SSA Terminals (Oakland), its largest terminal operator, to extend its lease through 2027.

The deal, which was approved on June 14, includes a 19-acre expansion at SSA’s Oakland International Container Terminal (OICT); purchase of three new ship-to-shore cranes by the terminal operator for cargo handling; and options that would extend the new lease an additional 15 years (to 2042) if certain conditions were met.

“SSA is an influential player on the waterfront worldwide, and a significant presence in Oakland,” John Driscoll, Port Maritime Director, said, adding that “this lease commitment demonstrates its belief in the port’s long-term prospects.”

Shipping activity at port qasim ive ships, Sea Span Oceania,Mediterranean Bridge, Darya Mahyesh, Sino Energy-8 and Gloriouscarrying Containers, Coal, Palm Oil and Diesel Oil were arrangedberthing at Qasim International Container Terminal, PakistanInternational Bulk Terminal, Liquid Cargo Terminal and FOTCO OilTerminal respectively. Meanwhile two more ships, APL Miami and Gas Amazo carryingContainers and LPG also arrived at outer anchorage of Port Qasimduring last 24 hours. A total of eleven ships namely, Sea Span Oceania, Mediterranean,Brideg, Inlaco Bright, Reem-5, Thassos, Darya Mahyesh, Sea Lavender,Maran Gas Mystres, Hyde Park, Sino Energy-8 and Glorious are currently occupying PQA berths to load/offload Containers, Wheat, Soya BeanSeeds, Coal, Phosphoric Acid LNG, Palm oil and Diesel oil respectively. Cargo

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‘Russia to retaliate against uS steel & aluminum tariffs’ T

BRISBANE

ten-t corridors extended include Spanish ports he European Commission has accepted the proposal of the Spanish Ministry of Public Works and Transport to expand the Atlantic and Mediterranean Corridors within the Trans-European Transport Network to include the Spanish ports that were kept beyond the TEN-T so far. These ports are Gijon, La Coruna, Huelva, Las Palmas, Tenerife and Palma de Mallorca, informs the press service of the Spain’s Government. This revision comes within the Wednesday’s proposal of the EC to renew the “Connecting Europe Facility” programme and include into the next long-term EU budget 2021-2027 the investment of EUR 42.3 bln in the European infrastructure networks, of which EUR 30.6 bln is allocated for transport.

With the exception of EUR 11.3 bln dedicated to cohesion countries, Spain may opt to receive part of this budget for the development of the efficient and sustainable trans-European transport network. –CB Report

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he US continues to apply protective measures by imposing additional import duties on steel and aluminum, and refuses to provide compensation for Russia’s losses. That is why Russia is using its WTO rights and introducing balancing measures with respect to imports from the United States,” he said. The US recently imposed tariffs on steel and aluminum. The trade penalties – 25 percent on imported steel and 10 percent on imported aluminum – took effect on June 1.

Russia’s response will apply to American goods that have an alternative produced within the country, Oreshkin said. In May, Russia informed the WTO about possible retaliatory measures in the amount of $538 million – exactly the same sum it stands to lose from America’s restrictions. The detailed list of affected American goods coming to Russia will be published within the next few days.

China, Russia, Japan, India, Turkey and the European Union

Friday June 22, 2018

have all said they don’t agree with the American tariffs on steel and aluminum, saying they cannot be explained by US security concerns – the pretext Washington has used to explain its actions. The affected countries will reportedly seek Oinancial restoration through the WTO to the tune of $3.5 billion per year.

Meanwhile, The Port of Brisbane joins the global major ports in the current trend of implementing blockchain-based solutions to connect supply chain participants, with the view to increase international trade efOiciency. The new tool, called

“Trade Community System” was developed in collaboration by PwC Australia, the Australian Chamber of Commerce and Industry (ACCI) and the Port of Brisbane, the port’s press service informs.

Roy Cummins, Port of Brisbane CEO, said yesterday at the launch of the Trade Community System proof of concept in Brisbane: “To drive new efOiciency gains, industry leaders need to develop mechanisms which facilitate the integration and interoperability of commercial operators across the supply chain and logistics sector.”

Services exports up 17.32pc throughput during last 24 hours stood at 167,653tonnes, comprising 136,547 tonnes import cargo and 31,106 tonnesexport cargo inclusive of containerized cargo carried in 2,750containers (TEUs), (1,236 TEUs imports and 1,514 TEUs exports) washandled at the port.

Gas carrier, Maran Gas Mystres sailed out to sea on Tuesdaymorning, while four more ships, Sea Span Oceania, MediterraneanBridge, Sea Lavender and Inlaco Bright are expected to sail onTuesday afternoon. Five ships, APL Miami, Maersk Denver, Manuela Botigliri, GasAmazon and YM Miranda carrying Containers, Palm oil LPG andChemicals are expected to take berths at QICT, LCT, FVTL andFOTCO respectively on Monday. –CB Report

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he exports of services surged by 17.32 percent on year-onyear (YOY) basis during the month of April 2018 compared to the corresponding month of last year. The services exports during April 2018 were recorded at $451.17 million against t he exports of $384.57 million in April 2017, according to the latest data of pakistan Bureau of Statistics (PBS).

The imports of services during the month under review witnessed negative growth of 2.08 percent by declining from the imports of $832.59 million last April to $815.30 million during April 2018.

Based on the Oigures, the trade deOicit during April 2018 decreased by 18.72 percent as it went down from the deOicit of $448.02 million

to $364.13 million.

On month-on-month (MOM) basis, the exports of services from the country increased by 4.96 percent in April 2018 when compared to

the exports of $756.30 million in March 2018. The imports into the country increased by 7.8 percent in April 2018 when compared to the imports of $756.3 billion in

March 2018. Meanwhile, the exports during the first ten months of the current fiscal year witnessed negative growth of 8.17 percent compared to the corresponding period of last year. Meanwhile, the overall services exports from the country during July-April (201718) were recorded at $4314.64 million compared to the exports of $4698.63 million in July-April (2016-17), the PBS data revealed.

The imports into the country witnessed increase of 6.29 percent during the period under review by going up from $8025.71 million last year to $8530.44 million during the ongoing fiscal year. Based on the figures, the services trade deficit during the first ten months of the current year widened by 26.71 percent as the deficit was increased from $3327.08 million last year to $4215.80 million during the current year.

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Pakistan to increase olive production soon Friday June 22, 2018

Business

ISLAMABAD: A plan has been prepared to increase olive production and make Pakistan one of top ten Olive-producing countries. The spokesman of Punjab Agriculture Department said, this project will help in ending the Olive imports.

He said that the department has decided to convert Chakwal valley into an Olive valley by promoting the Olive cultivation there.

He said that two million Olive plants will be distributed in Punjab during next five years free of cost, Radio Pakistan reported.

Secp issues anti-money laundering regulations ISLAMABAD

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he Securities and Exchange Commission of Pakistan (SECP) issued Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018, in compliance with Financial Action Task Force (FATF) recommendations, which are mandatory to adopt for Pakistan being a member of the Asia PaciOic group on money laundering. According to a statement issued by the SECP, the latest regulations “supersede all earlier notiOications which had separate anti-money laundering (AML) and countering Oinancial terrorism (CFT)

pteA hails increase in exports FAISALABAD

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akistan Textile Exporters Association (PTEA) has hailed the upsurge in country’s exports of 15.28 percent year-on-year to US$ 21.34 billion in first eleven months of current fiscal year. In a statement here , PTEA Chairman Mian Shaiq Jawed has lauded the upsurge in country’s exports. He claimed value-added textiles as the main driver of growth in the country’s exports which has risen 8.13% to US$ 11.13 billion in July-April period of FY18.

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requirements for Oinancial institutions regulated by the SECP”.

The SECP has provided a single set of regulations for all the securities brokers, insurance companies, non-banking Oinance companies and

modarabas with the aim to harmonise the AML and CFT regime.

The exchange commission said that with the latest regulations it has enhanced focus towards highrisk areas, taking a risk-based ap-

proach towards combating money laundering and Oinancing of terrorism. “In order to ensure that criminals are not able to hide their identity through use of complex ownership structure of companies, partnerships, trusts or other similar forms, the Oinancial institutions are required to identify the ultimate beneOicial owner, who is a natural person, of all legal persons and legal arrangements before offering their services to them,” read the SECP statement. Earlier this month, the National Security Committee (NSC) reafOirmed its commitment to cooperate with the international watchdog tasked with countering illicit Oinancing for addressing shortcomings in the country’s antimoney laundering and counter-terror Oinancing regimes.

engineering goods’ export up 11.78pc in 10 months T

ISLAMABAD

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he export of engineering goods during July-April (2017-18) increased by 11.78 percent to $160.75 million as compared to the export worth of $143.8 million during first 10 months of previous fiscal year.

The auto parts and accessories’ export witnessed an increase of 31.2 per cent as it rose to $14.03 million in first 10 months of current fiscal year from $10.7 million

worth of export during July-April 2016-17, a latest data released by Pakistan Bureau of Statistics (PBS) said.

Similarly the export of machinery specialized for particular industries also soared to $35.8 million during the period under review as compared to the export of $20.4 million during same period of previous year, thus showing an increase of 75 percent. The export of electric fans, however declined by 4.61 percent from $21.3 million to $20.337 million in 10 months of current fiscal year.

Likewise, the export of transport machinery also decreased by 15.42 per cent from $7.8 million in July-April (2016-17) to $6.6 million in same period of current fiscal year.

On year-on-year and month-onmonth basis, the export of engineering goods in April 2018 increased by 7.16 percent and 12.2 percent when compared to the export during April 2017, and March 2016 respectively. The export rose from $17.4 million in April 2017 and $16.7 million in March 2018 to $18.7 million in April 2018.

uS dollar hits alltime high of Rs125 in open market KARACHI

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he US dollar surged to its all-time high of Rs125 in the open market after gaining by a further Rs0.5 from yesterday, as the Pakistani rupee continued its slide in an apparent sign of vulnerability in the country’s economy. In the interbank market, however, the dollar has weakened by Rs0.33 and was being traded at Rs121.40, after climbing to Rs121.73 earlier, forex dealers said. The rupee drop threatens to squeeze consumers ahead of the general election set for July 25. The dwindling foreign reserves and a widening current account deficit have triggered speculation about going back to the International Monetary Fund for loans for the second time since 2013 – a possibility that was vehemently rejected by interim finance minister Dr Shamshad Akhtar earlier this month. In December and in March, the rupee was devalued, each time by about 5 percent, by the State Bank of Pakistan. Since December, the rupee has depreciated by about 14 percent.

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k-electric gets nepra nod to use RLng for its power plants ISLAMABAD

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he National Electric Power Regulatory Authority (Nepra) has allowed K-Electric to immediately start using re-gasiOied liqueOied natural gas (RLNG) as alternative fuel to reduce electricity shortfalls in Karachi.

The permission has been granted on a provisional basis to ‘provide

immediate relief to end-consumers’ as the regulator completes the normal legal and procedural processes and puts in place the mechanism for dealing with the difference in cost between imported RLNG and domestic gas that KE currently uses.

The “K-Electric is hereby allowed, immediate application of RLNG as alternative fuel subject to Oinal decision on and an order of refund for the protection of the consumers, while the proceedings are pending,”

said the regulator in its order issued.

Led by then Prime Minister Shahid Khaqan Abbasi, the Cabinet Committee on Energy (CCoE) had ordered the Sui Southern Gas Company Ltd (SSGCL) on April 23 to increase gas supply to KE under an arrangement of 130 million cubic feet per day (mmcfd) of natural gas and 60 mmcfd of RLNG to meet KE’s minimum gas requirement of 190 mmcfd. On the basis of this decision, the KE had Oiled an application be-

fore Nepra on April 30 seeking inclusion of RLNG as an alternative fuel with effect from the date of CCoE’s directives when it started operating its concerned power plants on RLNG. The regulator said it had admitted the KE’s application on May 9 and decided to initiate proceedings to modify the existing mechanism of fuel cost component on account of RLNG. The regulator said the utilisation of RLNG would be allowed af-

ter utilisation of the minimum quota of 180 mmcfd of local gas and the power despatch would be strictly in accordance with the economic merit order.

The operation of plants on simple cycle would also not be allowed while reference fuel price on gas and RLNG would remain unchanged.

The regulator also asked the Karachi-based private power utility to execute gas supply agreement with SSGC at the earliest.

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KCCI urges govt to stop further devaluation of rupee against dollar KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Muffasar Atta Malik, while expressing deep concerns over continuous devaluation of rupee against dollar, said that dollar has risen sharply to all time high of Rs122 which has to be controlled otherwise, it will have a devastating impact on the already beleaguered economy.

In a statement issued, President KCCI said that the government recently devalued Pakistani rupee for the third time in six months and rupee continues to fall against dollar, stoking concerns that the country may have to go to the IMF for a bailout. “We fear that the rupee may fall further in the coming months keeping in view Pakistan’s dwindling foreign exchange reserves”, he said, adding that such abrupt devaluations in the past brought about economic distress, which lasted for several years.

icci calls for one month’s extension in Amnesty Scheme

Chambers

kcci advises govt to extend last date by at least one to two more months

ISLAMABAD

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uhammad Naveed Malik, Acting President, Islamabad Chamber of Commerce & Industry has called upon the government to give at least one month’s extension in tax amnesty scheme so that maximum number of business community and other people could take benefit of it. He said this while talking to a delegation of businessmen that called on him led by Mian Akram Farid President Industrial Association Islamabad and Chairman, Skills Development Council, Islamabad. Ashfaq Hussain Chatha, Raja Safeer, Fahim Khan and Shiraz Siddiqui were in the delegation. Muhammad Naveed

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Malik said that the outgoing government had announced an amnesty scheme during last days of its term, but the matter was taken up by the Supreme Court for review due to which businessmen could not take benefit of it as they were waiting for the decision of the supreme court.

However, now the SC has approved the amnesty scheme and removed all doubts and ambiguities about it. He said the scheme was going to end on 30th June 2018 while due to Eid holidays, insufficient time was left for the business community and other people to work out the detail of assets for availing this scheme. He emphasized that the government should give at least one month’s extension in the scheme till 31st July 2018 that would facilitate potential taxpayers to take benefit of this scheme. It will also help in expanding the tax net of the country, he observed.

Friday June 22, 2018

KARACHI

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resident Karachi Chamber of Commerce and Industry (KCCI) Muffasar Atta Malik has advised the Federal Government to extend last date for Amnesty Scheme 2018 by at least one to two more months so that maximum number of individuals could beneOit from this scheme with an attractive tax rate for declaration and repatriation of foreign assets.

In a statement issued, Muffasar Malik pointed out that so far, the Amnesty Scheme has not received the kind of response which was being expected probably due to holy month of Ramadan, which was followed by four consecutive holidays of Eid ul Fitr. “With hardly 9 days left and the last three days falling on Friday, Saturday and Sunday, those individuals intending to declare foreign assets under Amnesty Scheme will not be able to do so because of limited time. It is a wellknown fact that Friday is a weekly holiday and Saturday is a half day in all GCC countries whereas Sunday

is a weekly holiday in New York, USA therefore, the remittances simply cannot be processed during these three days”, he said.

In order to make the Amnesty Scheme result-oriented, the government will have to extend the last date for at least one to two more months, he stressed, adding that this scheme would prove futile and all the efforts along with resources would be wasted if the offer under Amnesty Scheme actually ends on

June 30, 2018, he added.

President KCCI was of the opinion that political uncertainty due to forthcoming general elections has also discouraged many individuals to beneOit from the Amnesty Scheme announced by the previous government. Most of the potential taxpayers, who want to beneOit from the scheme, were on a ‘wait & watch’ mode as the Honorable Supreme Court was reviewing the scheme and has recently given green signal to it. Highlighting

icci shows concern over sharp devaluation of rupee ISLAMABAD

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he Islamabad Chamber of Commerce & Industry has shown great concerns over the sharp devaluation of rupee against dollar as it would cause manifold increase in foreign debt, enhance cost of production and unleash a new wave of inOlation for the common man making his life more miserable. It called upon the SBP and the caretaker government to take urgent remedial measures to end volatility and bring stability into the value of rupee.

Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that Pakistan was already overburdened with foreign debt while falling value of rupee would make manifold increase in

foreign debt as devaluation of Rs.1 caused almost Rs.60 billion increase in public debt. He said the falling value of rupee against dollar was indicative of a weak economy and added that any further devaluation of rupee would create additional challenges for our fragile economy.

He said the rise in inOlation due to devaluation of rupee would curtail the purchasing power of people leading to further slump in the business activities as growth of trade and industry depended on the purchasing power of the general public.

Sheikh Amir Waheed said that the local industry was importing lot of raw material for manufacturing of various products and the devaluation of rupee would enhance cost of production that would affect exports as our exportable products would become more uncompetitive in the international market. He said

that Pakistan’s trade deOicit during the Oirst 11 months (July 17 to May 18) have swelled to around US$34 billion and the devaluation of rupee would further increase trade deOicit that would put more pressure on the forex reserves of the country.

Therefore, he called upon the SBP and government to take urgent measures to stabilize the domestic currency. Muhammad Naveed Malik, Senior President, Islamabad Chamber of Commerce & Industry said that the value of one dollar against rupee was Rs.97-98 in June 2013 which has now fell to Rs.122123 against one dollar in recent days. It showed that our currency has devalued by over 24 percent during the last Oive years. He was afraid that if this trend continued, our future generations would be badly trapped in debt and economy would get further weakened.

some anomalies in the procedure for depositing tax and repatriating foreign assets, President KCCI referred to State Bank’s relevant notiOication which deOines the entire procedure for deposit of tax on, and repatriation of liquid assets under Foreign Assets (Declaration and Repatriation) Ordinance 2018 in which taxpayers have been advised to electronically Oill Form ‘A’ at FBR’s portal and generate PSID for payment of tax due on foreign assets which has to be paid on same day. However, this was not possible within a day particularly in a situation when a taxpayer from Dubai uses Telegraphic Transfer (TT) which usually completes the other day, he noted, adding that this anomaly in the tax payment procedure under Amnesty Scheme needs to be addressed. Muffasar Malik further pointed out that taxpayers have been further advised that after remitting funds to SBP’s account, they should electronically send a copy of wire transfer or swift message, bearing speciOication of CNIC/ NTN of the taxpayer in Oield 72, which was practically not possible in case the taxpayer is not a bank accountholder abroad.

ptA flays customs over ‘misuse’ of SRo akistan Tanners Association (PTA) has criticised Customs for putting the imported basic raw materials in quarantine list through a SRO, which was mainly for the food items. PTA Chairmnan Amanullah Aftab termed it irrational condition for the industry. The real spirit of the SRO was to get all food stuff quarantined at the import stage from world into Pakistan for the safety and health concerns for the general masses, he said. Unfortunately, the raw materials for the leather industry were inadvertently included in the SRO for compliance by the Customs authority, which has now become severe issue for the tanning industry.

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Faisalabad I&I impounds non-duty paid Honda City FAISALABAD: The Customs Intelligence and Investigation seized a nonduty paid Honda City car worth Rs 2.5 million involving duty and taxes to the tune of Rs 1.5 million during road checking here.

Sources told Customs Today that the customs officials received secret information that a non-customs paid Honda City car bearing registration number LRL 2545 is plying on roads in Faisalabad city.

Friday, June 22, 2018

CUSTOMS BULLETIN

Quetta customs will remain vigilant with border agencies: collector Ashraf Ali QUETTA tARiQ DeRYA

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he existing environment demands customs department to remain vigilant and vibrant along with developing regulatory efficiency and effectiveness through greater coordination among border agencies. These views were expressed by Collector Ashraf Ali while talking to Customs Today.

Collector Ashraf said that MCC Quetta is showing massive growth in revenue and surpassing revenue collection target during first 11 months.

Answering a query he said that the Olagship development project of Pakistan China Pakistan Economic Corridor (CPEC) will be passing through the area falling under jurisdiction of MCC Quetta.

He added the main artery of the Western route of the CPEC is passing through this Collectorate commencing from Basima and going to D.I Khan via Surab, Kalat, Quetta, Qilla Saifullah and Zhob.

Ashraf Ali said CPEC is expected to greatly enhance the flow of goods which would greatly benefit from the secure business en-

vironment being established by Quetta Customs in order to efficiently handle the flow of cargo.

He added that the present challenges faced by customs administrations across the country re-

quired adequate acquaintance with and adoption of innovative technology. The collector narrated, “I have always appreciated customs Quetta staff for making strenuous efforts in pursuing in-

formation connectivity with our stakeholders for a safe and secure trade.” He added that at the local front, collaboration with business and industry would enable all stakeholders to become innova-

tive and competitive, adding that the department has to take up all challenges and play its role in balancing its traditional responsibility aimed at effective enforcement and greater trade facilitation.

pLgMeA express concerns over issuance of SRo-1067 SIALKOT

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hairman Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) Hassan Ali Bhatti has expressed grave concern over issuance of the SRO-1067 dated 20.10.2017 2017 through which Animal Quarantine Department of Ministry of National Food Security and Research has imposed

quarantine requirements for the majority of food items and raw hide &skin to be consumed in Pakistan. In a statement Chairman PLGMEA strongly opposed this restriction. He said that it was very surprising the restriction of Quarantine has also been imposed on basic Raw Materials for the Leather Industry of Pakistan such as Raw Hides & Skins, Wet Blue of Goat/Sheep/Lamp, Cow & Buffalo Skins, which were obviously not Food Stuffs. He urged the Ministry of Commerce (MoC)to remove condition of ‘’Quarantine’’ for the import of basic raw materials for

the industry. He added that the said SRO was to get all the food items checked at the import stage for the safety and health concerns of the general public, but the raw materials for Leather Industry were also included in it.

“It has now become a big problem for the Leather Industry which imports a large quantity of this basic raw material for necessary value addition for re-export and earns valuable foreign exchange for the country”, he added.

Chairman PLGMEA Hassan Ali Bhatti stated that basic raw materials for the Leather Industry to

be re-exported after necessary value addition with further due tanning process to yield the sizeable foreign exchange for the country and such proposed Quarantine made vide said SRO would certainly lead the cause for the delay of clearance at Ports in Pakistan resultantly to impose the unnecessary demurrage, which would ultimately accumulate in the production cost, which was already at exorbitant extent as compared to our regional competitors and our member exporters would become in competitive in international market for selling the fin-

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ished leather.

He said that these precious Raw Materials for Raw Hides/Skins, Crust & Wet Blue leather were already covered with necessary ‘’Quarantine Certificate’’ at original at the time of export to Pakistan. “It is also ‘’obligatory’’ for the importers to submit the ‘’Health/Quarantine Certificate’’ at the time of import of raw materials form destination concerned into Pakistan. Therefore, it seems unnecessary to submit the ‘’Health/Quarantine Certificate’’ again in Pakistan to avoid duplication”, he narrated.