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Karachi, Fri June 29, 2018

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aretaker Prime Minister Nasirul Mulk has appointed Rukhsana Yasmeen, a BS-22 ofSicer, as the new chairman of Federal Board of Revenue (FBR) with effect from July 1. The current FBR chairman, Tariq Mahmood Pasha, has been transferred and posted as Secretary Statistics. Rukhsana Yasmeen belongs to 11th

Common Course. She joined government service as Customs ofSicer then she moved to Inland Revenue Service and performed her duties as chief commissioner after her promotion to grade-22 in 2016 and she was giving her services as Secretary Statistics Division at the moment. Sources said after taking notice of mega corruption cases including Rs. 1,000 billion green channel illegal clearances by Chief Justice Mian Saqib Nisar and Chairman NAB Justice (r) Javed Iqbal, the FBR chairman was facing tough situation as DG Intelligence Shaukat Ali

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admitted ‘merciless misuse’ of green channel facility but other top FBR and Customs ofSiciale were giving ‘all is well’ report. The issue became so hot that it reached to the PM House after CJP’s notice and the PM had to take this decision of transfer of Tariq Pasha. It is expected that action could be taken against other high ofSicials of FBR and Customs Dept in green channel mega scam. It is pertinent to mention here that it was only Customs Today which exposed green channel mega scandal upon which the CJP took notice and ordered the FBR authorities to submit reply within 10 days. The court associate had sent letter to Chairman NAB for necessary action.

Paris Meeting:FATF seems convinced on Pak efforts against terror financing

Collector Saqif Saeed recovers Rs8.24m from M/s Zeeshan Associates

Customs Preventive foils bid to smuggle mobile phones worth Rs5m

Tax evasion: Adjudication-II serves final notice to M/s Arsalan Glass Works

Quetta I&I foils bid to smuggle NDP goods worth Rs 7.88 million

FATFseemsalittlebitconvincedbyPakistani stance on measures taken against terror | SEE PagE 02 |

Customs Export Saqif Saeed has recovered evaded amount of taxes | SEE PagE 03 |

Customs Preventive foiled an attempt to smuggle huge quantity of NDP mobile | SEE PagE 04 |

Adjudication-II served a final notice to a defaultercompanyM/sArsalanGlassWorks | SEE PagE 09 |

CustomsI&Ifoiledasmugglingbidofgeneral items include electronics shaving razors | SEE PagE 16 |

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FBR to increase GST on steel composite units from July 1 Friday, June 29, 2018

ISLAMABAD: Federal Board of Revenue (FBR) has increase General Sales Tax from 10.5% to 13% on the steel composite units, with effect from July 1, 2018. Official sources told Customs Today that FBR has increased the GST from 10.5% to 13% on steel miters, steel re-rollers and steel composite units while the notification has been issued in this regard which will be effective from July 1. Meanwhile, the Federal Board of Revenue also increased the GST from 6% to 9% on the import of leather and artificial leather made goods including suitcases, briefcases, travelling bags, hand bags, shopping bags, wallet, purse, sports bags, school bags, laptop bags, jackets and leather belts and shoes.

Islamabad

Paris Meeting: faTf seems convinced on Pak eﬀorts against terror financing

ISLAMABAD

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n order to facilitate the taxpayers in depositing their duties and taxes, all the banks will observe extended working hours on June 29 & 30. All field offices of the Federal Board of Revenue (FBR) will remain open and observe extended working hours till 8:00pm on 29th June (Friday) and till 10:00pm on 30th June (Saturday) for collection of duties and taxes. The Chief Collectors of Customs will liaise with the State Bank of Pakistan, National Bank of Pakistan and other scheduled commercial banks in their respective jurisdiction to ensure transfer of the taxes collected by these branches to the respective offices of the State Bank of Pakistan on the same date and to account the same towards collection for the month of June, 2018. In a communication sent to SBP, the FBR chairman said that a large number of people intend to make tax payments to avail foreign and domestic tax amnesty. “Since payment of tax in foreign exchange is to be made on declaration of foreign assets, SBP is requested to make special arrangement with extended working hours,” the FBR said.

he Financial Action Task Force (FATF) seems a little bit convinced by Pakistani stance on measures taken against terror Sinancing and related issues. However, in result of ongoing meeting in Paris, the upcoming government will pay serious attention to the observations of the FATF. Pakistan in a meeting underway in Paris is trying to convince the FATF on measures taken against terror Sinancing and related issues. The Pakistani team is facing a lot of pressure and problems in justifying a large number of issues raised by FATF members in the discussions. A source at Finance Ministry told Customs Today that the caretaker Finance Minister, Dr Shamshad Akhtar, is leading Pakistani delegation at FATF Paris moot. Last month, eight-member Pakistani delegation comprising investigation agencies and others presented a report comprising actions taken against terror Sinancing before FATF Asia PaciSic group in Bangkok and that report was under discussion at FATF in Paris. But the source said that the caretaker government has changed the members of the delegation in a bid to avert further downgrading of Pakistan ranking or checking Pakistani placement at ‘Grey List’.

Tax collection: Banks to observe extended working hours on 29th, 30th

FATF has expressed a little bit satisfaction over Pakistani measures; however, the source said that blocking Pakistan’s further downgrading of ranking was a real test for Dr Shamshad Akhtar who had been very much privy to the issues under discussion at the Paris meeting. The source said that previous democratic government made almost all efforts to plead Pakistani case; however, the international

community was convinced that issue of terror Sinancing is out of jurisdiction of civilian government. To a question about possible consequences for Pakistan of downgraded rank by FATF, the source said that once Pakistan would downgraded all the banks of Europe would have to blacklist Pakistan; consequently all the major countries would have to comply with the decision of FATF because FATF was an

organization of United Nations. Downgrading will directly affect Pakistani economy and earn international isolation of Pakistan. Therefore Pakistan will have to avert this downgrading at almost all costs. The source said that in this regard, Pakistan would have also Sight off Indian hostile campaign because Indian lobbyists don’t spare any moment to malign Pakistan at international forums.

‘Islamabad Customs will surpass assigned revenue collection target’

ISLAMABAD

ShahID MINhaS

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he Customs Collectorate is showing exemplary performance and is all set to make a record collection during current Fiscal Year 2017-18. While exclusively talking to Customs Today, Additional Collector Customs Collectorate Mohammad Ashfaq has expressed his enthusiasm and said that the Collectorate

will surpass the assigned target for the Fiscal Year 2017-18. The Collectorate is all set to make a record through a well-planned strategy, recovery plan and enforcement measures. This success story disclosed that the Collectorate’s persistent efforts to recover unpaid amount of duties and taxes and speedy clearance of imported consignments at port and airport also contributed to revenue collection. Meanwhile, the anti-smuggling activities played a key role in seizure

of luxury vehicles, narcotics and miscellaneous consignments which resulted in contribution of revenue to the national exchequer. Another important factor which contributed in surpassing the assigned targets was the speedy Sinalization of pending cases at ports and auction of seized goods, said the additional collector MCC Islamabad. The additional collector further said that till May 31 of this current Siscal year, the Collectorate collected total taxes of Rs19,216.17 million

against the assigned target of Rs13,340 million. The percentage is clearly identiSied that the Collectorate has already outdone the assigned target. The additional collector said that under the head of sales tax, the Collectorate hit the 195.66% while collecting Rs8,851 million against the Rs4,523 million which showed the record collection during the current Siscal year. Meanwhile, the data revealed that extra positive trend has been observed in collection of customs duty (CD),

sales tax (ST), federal excise duty (FED) and withholding tax (WHT) by MCC Islamabad during current Siscal year. Islamabad Collectorate is committed to not only achieving its annual target of customs duty, sales tax and FED but also made serious efforts to surpass with a huge margin of all federal taxes collection at import stage during FY 2017-18. Furthermore, the Customs Collectorate has collected Rs14.47 billion during 2016-17 against the assigned target of Rs14.7 billion.

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Employees of Karachi port terminal continue strike KARACHI: The employees of Karachi Port’s South Asia Terminal on continued their strike for fulfilment of their demands, which has affected the operations of the anchorage. According to reports, carriers and other fright-loaded ships anchored at the terminal have not been offloaded owing to the strike. Almost 1,500 containers are delivered daily from the port and halt of operations is causing millions of rupee losses to the shipping companies, sources said. The protesters have said that they would call off the strike when the demands of the workers’ union are met and sacked employees are reinstated.

Court re-issues NBws against absconders booked in hSD smuggling case

Friday June 29, 2018

Karachi

Collector Saqif Saeed recovers Rs8.24m from M/s Zeeshan associates

KARACHI

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he Customs Court re-issued non-bailable warrants against absconding suspects namely Raheemullah son of Badsha Din alias Raheem Jan, Kareem Jan, Abdul Samad Bizanjo son of Abdul Kareem, Leemon Khan son of Gul Muhammad Brohi, Adul Kabeer son of Ghulam Nabi, who were booked in a case of attempting to smuggle nonduty paid foreign 25,000 liters high speed diesel (HSD). The investigation oﬃcer submitted that on credible information, a team of ASO intercepted an oil tanker bearing registration number TUB-890 loaded with HSD and was signaled to stop near National Highway.

M/s Tara Imperail Industries moves ShC for security refund KARACHI

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/s Tara Imperail Industries Pvt Ltd approached the Sindh High Court (SHC) for refund of the amount collected by customs oﬃcials in the name of regulatory duty under Section 18 (3) of the Customs Act, 1969 on consignments of steel products. Counsel for the petitioner stated in its constitutional petition that petitioner is engaged in manufacturing of steel products and imported diﬀerent type of raw material for manufacture of finished steel products. The petitioner being commonly aggrieved by the arbitrary, illegal and mala fide actions of the respondents who issued SRO 1035(1)/2017 dated 16/10/2017 in purported exercise of power under Section 18 (3) of the Customs Act and imposed regulatory duty on a number of items including the items imported by the petitioner.

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ustoms Export Collector Saqif Saeed has recovered evaded amount of taxes and duties to the tune of Rs8.24 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Zeeshan Associates availed undue beneSits and concessions on import of fancy electric items included lights, and board by misusing the SRO 551. The consignment was cleared through Examiner Akram Rasool on February 24, 2018. Sources said that the company was allegedly involved in tax evasion of Rs3.55 million. Investigations were continued. After detecting the tax evasion, the Customs Export issued it with a Sinal notice on June 11, 2018 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s Zeeshan Associates deposited the evaded amount in the ofSicial account of the Customs Export on June 25. Sources said that management of the M/s Safdar Haroon Garments also cleared Rs4.69 million of taxes and duties. Sources said that M/s Safdar Haroon Garments also availed undue beneSits and concessions and avoided taxes according to the customs bylaws. The Customs Export authori-

ties served on it a Sinal notice on June 13, 2018, after which the management of the M/s Safdar Haroon Garments deposited the evaded amount of taxes on June 25, 2018. Meanwhile, The Collector Export Saqif Saeed recovered evaded amount of taxes and duties of Rs8.25 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Kazim

after receiving the notice, the management of M/s Zeeshan associates deposited the evaded amount in the official account of the Customs Export on June 25

Court grants bail of suspect booked in smuggling

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he Customs Court granted bail to suspect namely Abdul Ghani, son of Muhran Gul, who was booked in a case of attempting to smuggle contraband betel nuts etc. A counsel for the accused Siled petition for after-arrest bail and argued that his client is innocent and was falsely implicated in this case, who is ready to face trial, therefore,

court may grant him bail till judgment in this case. After the hearing, court granted him bail against the surety of Rs200,000 and directed him to appear on next date of hearing for conformation of bail application. On last date of hearing, investigation ofSicer Sadam Hussain submitted interim charge-sheet and informed the court that on a credible information, a team of customs department found a high wall 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 goods loaded in the said truck. Investigation ofSicer further informed the court that during the search of said truck.

& Sons availed undue beneSits and concessions by importing various kinds of tin pack juices and pine apples pieces by misusing the SRO 552 through Examiner Raheem M. Khan on 7th November, 2017. Sources told that the company was allegedly involved in tax evasion of Rs5 million. Investigations were continued, after detecting the tax evasion, the Customs Export issued it with a Sinal notice on 4th June, 2018 to deposit the evaded amount within 14 days.

Pak rupee closes firm against greenback he Pakistani rupee on remained firm against the US currency both in interbank and open market. As per the local money market, the dollar closed unchanged both in open market and interbank for selling at Rs124.55 and Rs121.60 respectively. The greenback added 10 paisas in interbank for buying at Rs121.40 and for selling at Rs121.60.

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Customs Preventive to auction NDP goods, vehicles Friday June 29, 2018

Lahore

KARACHI: Collectorate of Customs Preventive will hold auction of leftover lots of cargo and vehicles at State Warehouse on June 27 at 10am. Around 20 non-duty paid vehicles will be presented for auction while 18 other non-duty paid goods will also be auctioned. All participants are advised to bring copy of their original CNIC for participation in the auction.

Probing corruption cases Customs Preventive foils bid of Rs500-1000b, NaB to smuggle mobile worth Rs5m chairman receives threats LAHORE

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hairman NAB Justice (r) Javed Iqbal said that the NAB would continue its ‘Jihad’ against corruption even after the Bureau received threats of bomb attack on its headquarters. The NAB Chairman said NAB officials were not afraid and would continue to perform their duties with dedication and asserted that ‘death and life is in hands of Allah. We do not fear from anyone except Allah and His Prophet (PBUH)’. As per details, Customs Today raised the issue of billions of rupees green channel mega smuggling and senior journalist Asad Kharal lodged a complaint with Chief Justice Mian

PTEa hails increase in exports 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 on Tuesday, 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. In the first 11 months of current fiscal year FY18, total exports crossed US$ 21 billion and if the trend continues, they would cross US$ 23 billion, which will be the highest level since FY14. Appreciating the initiatives taken to arrest the downfall in exports, he said that textile exports have taken the flight as a result of cash incentives under the Prime Minister’s export package. –CB Report

Saqib Nisar who took the notice and ordered the concerned authorities of FBR to submit the reply. The court associate also sent a copy to the NAB for necessary action. Soon after lodging the complaint, smugglers of green channel or corrupt mafia of Customs Dept attacked Kharal near Lahore Airport and assaulted him severely. Kharal hinted at Rs5001000 billion corruption cases in the Supreme Court and NAB as cause of his attack. He also warned that due to these highprofile corruption cases, even the CJP and NAB chairman were not safe enough saying that ‘the mafia can also target the chief justice and the NAB chairman and I advise them to step up their security’. Now the Chairman NAB has received the threats, possibly from corrupt mafia or smugglers of green channel.

M haYaT

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ollectorate of Customs Preventive anti-smuggling squad foiled an attempt to smuggle huge quantity of non-duty paid mobile phones worth Rs5 million. Sources told Customs Today that Collector Preventive Faiz Ahmad received credible information about smuggling of mobile phones. He immediately constituted an antismuggling squad under supervision of Deputy Collector Moazzam Raza comprising Superintendent Anti Smuggling Organization Agha Qadeer Haider, Inspectors Shahid Khan and Amjad Khan. The above said squad set up a check post near Thokar Niaz Baig Motorway Interchange and started checking of vehicles. The squad intercepted two vehicles bearing reg-

Court summons more witnesses in heroin smuggling case

ession Court Additional Session Judge Shahid Bashir Chaudhary summoned more witnesses in a case of Rs 100 million heroin smuggling. During previous hearing, court recorded the statements of three customs employees in heroin smuggling case and the case was adjourned for next hearing and customs ofSicials were directed to make sure their presence along with new witnesses. It is necessary to mention here that during last hearing, court was not able to record statements because of shortage of time.

During hearing before Eid holidays Customs Inspector Saleem Ahmed Malik, In-charge Customs Godown Yousaf Khan recorded their statements. While Naheed Akhtar and Inspector Shahid resumed to record their statements. A 21-year-old Czech woman, Tereza Hzulkova, while carrying nine kilogram of heroin was arrested from Allama Iqbal International Airport. The Czech lady adopted the stance that she came to visit Pakistan for modeling purpose and did not know that heroin is hidden in her bag. –CB Report

istration no: LZO-7529 and LWO3319 which were coming from Peshawar and recovered 1220 non duty paid mobile phones. The anti smuggling squad asked accused persons to provide any relevant legal documents regard-

ing possession and transportation of these mobile phones but they failed to produce any legal documents. Customs Preventive team seized mobile phones and started further investigations after registering a case.

NaB summons Miftah Ismail for July 5 ational Accountability Bureau (NAB) Karachi has summoned former finance minister Miftah Ismail on July 5 in Jamshoro Joint Venture Limited (JJLV) case and Senator Ms Rubina Khalid is summoned in NAB Rawalpindi today. NAB has authorized Complaint Verification against Senator Rana Mehmoodul Hassan for having accumulation of assets beyond known sources of income. NAB has taken up several mega corruption cases in recent months including an important case of Rs 1000 billion green channel mega

scam. Being head of Finance Ministry, Miftah Ismail did nothing to stop misuse of green channel facility as FBR falls under the finance ministry. Now the Chief Justice and Chairman NAB took notice of the issue and ordered the FBR authorities to submit the reply. Earlier, the country’s anti-graft body had summoned Miftah Ismail on June 20 for awarding controversial contracts for the sale of natural gas liquids (NGL). The NAB on June 14 initiated an inquiry and sent a call notice to the former finance minister. –CB Report

Punjab interim govt hikes collection targets for tax bodies

LAHORE

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he interim Punjab government has increased the budget estimates for 2018-19 for provincial tax bodies. “Revenue generation by provincial government (tax and non-tax) has increased by 16% to Rs359 billion for 2018-19 compared

to last year, whereas next year’s combined tax collection target is proposed to be increased by 29%.” It has increased the tax collection targets for the Punjab Revenue Authority to Rs150 billion for 2018-19 against the revised estimates of Rs115 billion for 2017-18. Similarly, the Punjab Board of Revenue and Excise and Taxation department’s revenue targets have

been increased to Rs74.45 billion and Rs35.7 billion against revised estimates of Rs62.5 billion and Rs28.5 billion, respectively, for the corresponding period last year. “Under Article 126 of the constitution, the caretaker cabinet can authorise expenditures of four months from the Provincial Consolidated Fund,” said Punjab Finance Minister Zia Haider Rizvi in a

press briefing. He said the basic mandate of the caretaker government is to conduct free and fair elections. “We are here to conduct elections so we are not going to impose any new taxes nor are we going to put any extra burden on the provincial exchequer,” he said, adding that in line with the federal government initiative, a 10% increase in basic pay would be made.

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lthough the ongoing tax amnesty scheme has gained a momentum in the last few days, yet missing the revenue collection target will haunt the new Federal Board of Revenue (FBR) Chairman Rukhsana Yasmeen during the next Siscal year. This may turn both ways; may cast positive and negative impacts on the performance of FBR’s Sield formations because the outgoing government set a huge revenue collection target for the tax authority for the Siscal year 2018-19. The current FBR chairman, Tariq Mahmood Pasha, has been transferred and posted as Secretary Statistics. Newly-appointed FBR Chairman Rukhsana Yasmeen will take charge of the affairs of the tax authority form July 1. A source at FBR told Customs Today

Friday, June 29, 2018

that in result of ongoing tax amnesty scheme, FBR would get revenue of around Rs 40 billion as almost Rs 30 billion had been already collected; however, revenue collection shortfall may be of some Rs 250 billion. FBR may touch the Sigure of Rs 3,700 billion of revenue target by the end of current month, the last month of the ongoing Siscal year. The source said that Rs 40 billion revenue being incurred from tax amnesty scheme would not be collected in the upcoming Siscal year because this amount was for the one time collection and FBR could not afford announcement of tax amnesty schemes every year to meet the revenue shortfall. The source said that FBR would have to focus on improvement of enforcement of Sield formations along with the proper training and capacity building of the tax collectors to ensure meeting the revenue collection for the next Siscal year. “In the developed countries,

nonpayment of tax is treated as a criminal activity and cases are prosecuted through criminal proceedings whereas in Pakistan, such cases are treated as civil court proceedings, but civil proceedings are full of lacunas therefore tax evaders don’t get the required punishment” the source added. “Therefore, for the treatment of nonpayment of tax cases as criminal cases, ofSicers and staffers are required appropriate training,” the source said, adding that bureaucrats at higher level as well as on the ground Sield ofSicers would not be ready for such treatment of such cases so tightly. The source said that the FBR had taken a large number of measures, including the Silers and non-Silers, to meet the revenue collection targets but those measures were mainly focused on the middle and lower middle class of people, but major tycoons of the country remain out of focus of the FBR’s measures because these tycoons remain unaffected because they passed the taxes over to end consumers.

Tariq rman, i a h c BR een rrent f , has b a h The cu s a retary ood P as Sec d Mahm e t s o fBR and p ointed erred p f s p n a a y r ill t wl een w cs. Ne m i s t s a i Y t a a St khsan he tax an Ru irs of t m a r i ﬀ a a h C of the uly 1. harge form J take c y t i r o auth

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EDITORIaL

Reaping benefits of CPEC

joint study of the Asian Development Bank, Department for International Development of the United Kingdom, Japan International Cooperation Agency and the World Bank has suggested the Pakistani government to take the required measures to reap enormous benefits of $60-billion China Pakistan Economic Corridor. The report says that investment in roads, railways and ports, under the corridor project, offers enormous potentials for the country not only to boost its economy and reduce poverty, but also take the benefits of the regional connectivity. The Web of Transport Corridors in South Asia report also calls upon the relevant stakeholders to undertake complementary measures to improve local conditions to manage and plug the financing gaps in a sustainable manner. The study advocates for involving local population in the way of the corridor, saying the new transport infrastructure should have to come with means for the people to take full advantages of the improved connectivity right from the beginning. The corridor project has the potential to connect regional markets, create and increase demand for locally manufactured products and boost economy. The report came at a time when South Asia is passing through a critical period of its history where tension is high but political will to enhance cooperation among the regional countries is absent. The worldâ&#x20AC;&#x2122;s largest poor population lives in India and it is on the course of collision rather than convergence. Extremist elements have grabbed the government in India which has spoiled peace which is necessary for development of the regional economies. The report mentions that Asia is becoming an engine of growth and important driver of the global economic development with various corridor projects offering opportunities of collaboration. The benefits of investment in the corridor projects could only be reaped when economies are able to create export surpluses and spread the benefits of foreign investment fairly among the local population. The proposed Khyber Pass Economic Corridor would not only help consolidate regional connectivity but will also help boost cross border trade and local economic activities.

Loss of macroeconomic stability A

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ccording to analysts, the recent depreciation of Pakistani rupee has brought the economy to its knees as the macroeconomic stability the country achieved during the last four and half years have lost. The economy has been reverted to the position it had in 2013 with additional loans of $45 billion. The desire of economic recovery has lost somewhere in the middle of political chaos and economic disturbances during the tenure of the Pakistan Muslim LeagueNawaz. The policymakers of this country not only lack ability to

look into the future prospects of the economy, but also lack capacity to face challenging of the modern economic world. The analysts firmly believe the government allowed the depreciation of the Pakistani rupee only to comply with the conditionalities of the International Monetary Fund and qualify itself for a fresh bailout package to avoid a possible default. During the last four and half years, the burden of loans has increased from $45 billion to $90 billion which is expected to cross $100 billion in the next few years. In the absence of a mechanism of accountability, the political leadership, bureaucracy and all others who matter freely work

on their will to spoil the broth. The government has been explaining for the last couple of months that it would not seek another bailout package from the IMF and Adviser to PM on Finance Miftah Ismail, has also dispelled the impression that the government is seeking any IMF assistance. However, the speed with which the foreign exchange reserves are depleting, trade deficit are on the rise and industry is struggling to survive, the government is expected to take up the issue of new IMF financing in April during World Bank-IMF spring meetings in Washington for a makeshift remedy. The policymakers always look at one side of the sit-

uation and ignore the other, and leave the arena by adding more troubles to the economy. Only a few months had been left for the mandate of the current government and there was no need to take suicidal step such as devaluation of rupee. However, the depreciation of rupee will have long standing effects on the overall economy and they are the people who would suffer shocks and aftershocks of the emerging situation. Still there is time for the government to reverse the decision of the depreciation of the rupee and stabilize the economy not on the basis of loans and grants, but stimulation of the industrial and agriculture sectors growth.

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SHC rejects bail of suspects booked in sales tax evasion KARACHI: The Sindh High Court (SHC) rejected bail petitions of three suspects namely Muhammad Abid, Azam and other, who were involved in import & export sales tax fraud. A division bench announced a detail verdict on bail petition which was reserved earlier by the same bench. However, the court conﬁrmed the bail of suspect namely Majid Ali. In the same scam, FPCCI President Zubair Tufail is on bail and four suspects namely Abdul Wahid, Kashif, Naseer and Abdul Rauf are still in Central Jail on judicial remand. Earlier, special prosecutor for NAB argued that accused persons are involved in mega scam and prosecution ﬁled details documents as concrete evidences before the NAB court; therefore, the court may reject their bail petitions.

IhC settles case involving Customs appellate Tribunal, MCC ISLAMABAD

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slamabad High Court disposed of a customs case involving Customs Appellate Tribunal and Collectorate of Customs, Islamabad. IHC bench comprising Justice Athar Minallah and Justice Miangul Hassan Aurangzeb had earlier dated in office hearing of M/s Nayatel Private Limited filed against Customs Appellate Tribunal. Other customs cases were relisted filed by Syed Waqas Ali Shah against Collector Adjudication the Customs collectorate. Another case from Asmatullah was also relisted. The appellant had filed the matter against MCC. Meanwhile, IHC division bench comprising Justice Athar Minallah and Justice Miangul Hassan dated in office hearing of cases including the one filed by M/s Awan CNG Re-Filling Corporation Private Limited. The company had filed cases against Collectorate of Customs. The bench had also dated in office hearing

Friday June 29, 2018

National

Tax evasion: adjudication-II serves final notice to M/s arsalan glass works C

KARACHI

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ustoms Adjudication-II served a Sinal notice to a defaulter company M/s Arsalan Glass Works, Karachi and recovered Rs 4.29 million from M/s Saba Iron & Steel Manufacturers. Sources told Customs Today that M/s Arsalan Glass Works, Karachi was allegedly involved in tax evasion. The company imported various types of white crystal chemical which include imported plastic dana and other items on December 29, 2017 by using wrong PCT heading. The consignment was cleared by Examiner Amir Siraj. Sources told that Collector Adjudication-II Tahir Qureshi issued a Sinal notice to the company on 20th June asking the company to clear the outstanding amount of Rs3.82 million within 14 days. Source said another company M/s Saba Iron & Steel Manufacturer got cleared a consignment of iron scrap, included out of order cars and other scrap on January 16,, 2018 and evaded a tax amount of Rs 4.29 million. Customs Adjudication-II served

a show cause notice to the company on May 18, 2018. After receiving the notice, the company deposited Rs4.29 million in favor of customs department on 20th June, 2018. Meanwhile, Customs Adjudication-II , served Sinal 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 Cus-

toms 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 Sinal 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.

aDB cancels $20m loan for privatisation of matters filed by DG Intelligence and Investigation against Malik Muhammad Ajmal Khan. M/s Comfort Sales Corporation filed case against ATIR and customs department. M/s Comfort Sales Corporation had challenged the act of recovery of said amount by commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show-cause notice and demand of recovery of outstanding tax amount under the head of federal excise duty (FED). M/s Comfort Sales Corporation had prayed the court that FBR oﬃce had issued a recovery notice to the company which did not hold lawful grounds.

ISLAMABAD

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he Asian Development Bank (ADB) has cancelled a approved loan of $20 million to Pakistan for a project aimed at strengthening the government’s capacity to privatise and restructure its designated public sector enterprises (PSEs) and strengthening the privatisation progrgamme. ADB announced that the privatisation programme has been slowed down even further and remain largely on hold to date, therefore funds from the loan were no longer needed by the government. The main purpose of the loan funds was to Sinance some of the government’s privatisation actions. The government resumed its public sector enterprise divestment pro-

gramme in 2013 and initiated a number of privatisation related transactions including banks, a petroleum company and a strategic sale of a construction company. While the government was successful in some cases, it needed to revise its strategy for some of the larger transactions, owing to market

conditions such as progress of negotiations with labour unions and Sinancial conditions of public sector enterprises. This led to revised timelines and mode of transactions for some of the large transactions, including Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM) and power distribution com-

panies, and resulted in a much-reduced scope of privatisation actions for the government. Moreover, after the loan was signed in 2015, large grant funds from other development partners also became available, and the use of grant funds was prioritised by the government for privatisation actions like advisory services. The project scope was to strengthen the government’s capacity to privatise and restructure its designated public sector enterprises by strengthening the privatisation programme, improving corporate governance, structure and management of selected public sector enterprises, enhancing governance and regulatory regimes in selected sectors currently dominated by PSEs, and project management support including planning, procurement, project implementation and Sinancial management.

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Pakistan to increase olive production soon Friday June 29, 2018

National Employees of South asia Terminal end strike after successful negotiations

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.

PCa detects tax evasion of Rs8.17m by M/s Shangi auto Parts karachi

KARACHI

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KARACHI

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orkers of Karachi Port’s South Asia Terminal who were on strike from Monday evening called off their strike at 12:00pm Tuesday after successful negotiations. Sources told Customs Today that due to strike fright-loaded ships anchored at the terminal have not been offloaded. The protesters were of the view that they would call off the strike when the demands of the workers’ union will met and sacked employees will be reinstated. According to some reports operations of the terminal were suspended from Monday as the strike affected the entire port operation. Talking with Customs Today Secretary of workers union Ghulam Abbass said that so many workers have terminated in last few months and the working hours are too long while the wages are low. The terminated workers are still unemployed.

PTEa hails increase in exports 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, 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. In the first 11 months of current fiscal year FY18, total exports crossed US$ 21 billion and if the trend continues, they would cross US$ 23 billion, which will be the highest level since FY14.

he Directorate of Customs Post Clearance Audit detected duties and tax evasion of Rs 8.17 million by M/s Shangi Auto Parts, Karachi, it is learnt here. Sources told Customs Today that M/s Shangi Auto Parts imported two consignments of new and used vehicles engine and different kinds of auto parts and got it cleared from the PICT Karachi vide GDs 5627 on December 22, 2017 by paying customs duty low at 10 percent after claiming the beneSit of the SRO 558/2007. However, the subject items were correctly classiSiable under the PCT 3548.3504 attracting customs duty at 14 percent and income tax at 8 percent, thus, by way

of mis-declaration of classiSication, the company evaded/short-paid Rs 8.17 million. The goods were cleared by Appraiser Umar Farooq. Sources told that the importer violated the provisions of Section 58 (6-A) of the Customs Act-1969, Section 28 read

with Section 84 of the Sales Tax Act1990 and Section 27 of Income Tax Ordinance 2001 punishable under clauses (27) of Section 18(5) of the Customs Act-1969, Section 19 of the Sales Tax Act-1990 and Section 49 of Income Tax Ordinance 2001 and

Section 9-B 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.

Quetta I&I foils bid to smuggle medicines, chemicals worth Rs 6 million T

KARACHI

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he Directorate of Customs Intelligence and Investigation (I&I) on Monday foiled an attempt to smuggle illegal medicines and liquid chemicals (used manufacturing in drugs) Rs6 million during checking. Sources told Customs Today that Director Customs Intelligence and Investigation Muhammad Akram Chaudhary received a tipoff that some smugglers are trying to smuggle various type of banned medicine and hashish from Quetta to Sindh. He immediately constituted a raiding team under the supervision of Inspector Imran Sheikh of Preventive department and others. The team enhanced the surveillance on Ziarat Highway and started searching vehicles. During the search op-

eration, the team intercepted a Mazda van bearing registration no: HDG-7362 which was heading towards Sindh. During the checking,

the customs team recovered 500 packets of illegal medicines, and 20 packets of liquid chemicals worth Rs 6 million. The customs team

seized all smuggling items and arrested two smugglers. Further investigations are still in process till the Siling of this report.

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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.

Engineering goods export up 11.7 percent 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 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, 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 ex-

port 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-on-month 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.

National

M/s Dawn Leather Industries moves ShC for release of consignments of raw material

Customs Tribunal orders to conclude arguments of case filed by M/s Yarkan ISLAMABAD

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ustoms Appellate Tribunal issued directives to conclude arguments in customs reference filed with the tribunal for rehearing of M/s Yarkan’s case decided in favor of Collectorate of Customs, Islamabad. Customs Appellate Tribunal’s Members Technical Muhammad Nasir Khan and Syed Muhammad Anwar heard the matter. The case was carrying a matter about alleged mis-evaluation of imported goods. Earlier, customs appellate tribunal bench-II had heard the case. M/s Yarkan had filed the case against Collectorate of Customs, Islamabad. The appellant had challenged a decision announced by departmental adjudication in which it had maintained to seize imported fabric items by M/s Yarkan. The adjudication had found the importer guilty of mis-evaluation of imported goods. The decision stated that the items were cleared for value & 3.75/kilogram; however, the inquiry found its actual value as of Rs & 5/kilogram. Thereby, a difference of Rs281,163,4 had occurred in evaluation of cost-duty ratio.

M KARACHI

M.B RaNa

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/s Dawn Leather Industries has approached the Sindh High Court (SHC) against detention of three consignments on the Slimsy ground that the manufacturing unit of the petitioner is not existing. Counsel for the petitioner stated in its constitutional petition that it is engaged in the lawful business of manufacturing-cum-export of the articles made of artiSicial leather to the various sources around the world and also registered as a manufacturer with the IRS authorities. Therefore, considering the conditions of the SRO 942(1)/2009 dated 13/06/2009 in general and condition numbers (i) (ii) (iii) & (vii) in particular, the petitioner has temporarily imported raw material for export of leather bags. He argued that according to the condition no (vi) of the SRO 492 (I)/2009, the petitioner as well as other similarly placed importer-cumexporters are bound to consume the temporarily imported raw material in 18 months, the time limitation can be extended by the collector of customs for further period of six month on

Friday June 29, 2018

payment of surcharge @ 1% per month and; thereafter, it can be further be extended by the board (FBR) on exceptional circumstances. He further argued that the controversy, which is matter/cause of this petition, only started, when the deputy Collector of Customs (R&D) Appraisement West unilaterally, without jurisdiction and in violation of the provisions of SRO 492(I)/2009, detained three imported consignments of the petitioner on the Slimsy ground that the manufacturing unit of the petitioner is not existing. Citing Secretary Ministry of

Revenue, Chief Collector of Customs Appraisement South, Collector of Customs Collectorate of Appraisement West and others as respondents, he pleaded the court to declare that detention of its consignments completely mis-interpretation of the SRO 492(I)/2009 is illegal without jurisdiction and against the dictates of law, natural justice and they have no power to deny the exemption/ concession available to petitioner in same terms and cannot deviate from the practice persisting since the inception/ issuance of said SRO.

Rangers foil bid to smuggle Indian gutka, hand over to Customs

KARACHI

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he Pakistan Rangers Sindh has claimed to have foiled a bid to smuggle Indian gutka into the metropolis. The spokesperson of the paramilitary force said they were conducting snap checking on Mauripur Road in Lyari when they spotted Sive pickups. “We stopped the vans and searched them. During the search, we found 5,000 kilogrammes of gutka hidden inside them. Its estimated value is about Rs six million,” the ofSicial said. “The gutka reached Afghanistan from India. From there,

it was [brought] into Pakistan through Balochistan. When it was caught, it was being taken to Jodia Bazaar and old city areas of Kharadar from Yousuf Goth bus terminus,” he added. The gutka has been handed over to Customs authorities for legal action. Last year, the Sindh High Court had directed the inspector-general of police and the director of the Karachi Metropolitan Corporation’s anti-encroachment department to take action against stalls selling gutka in the city. The court had issued the directions after a petition was Siled seeking complete ban on gutka and punitive action against its sellers.

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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 29, 2018

federal Customs service Deputy European firms say China head anatoly Seryshev steps down business ‘more diﬃcult’ E

BEIJING

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RUSSIA

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eputy Head of the Federal Customs Service of Russia Anatoly Seryshev was relieved of his duties due to a transfer to another appointment. The corresponding order of June, 2018 was signed by the Prime Minister Dmitry Medvedev. The document was posted on the official legal information website. By presidential decree Anatoly Seryshev on June, 2018 was appointed Assistant to Russian President Vladimir Putin. Mr. Anatoly Seryshev was born in 1965 in the Irkutsk region. In 1988 he graduated from the Baikal State University (formerly the Irkutsk Institute of National Economy) with a major in “Labor Economics”. In 1988-1990 he underwent the USSR KGB training.

US imports push Japan into trade deficit in May mports of US aircraft helped push Japan to a trade deficit in May, official data showed, but experts said it was a temporary effect not linked to ongoing trade tensions. Japan’s imports rose 14.0 per cent in May from a year earlier, according to finance ministry data. Exports also enjoyed an 8.0 percent rise but the overall effect was a net deficit of 578.3 billion yen ($5 billion). The deficit was nearly three times the size of the figure last year and came after two consecutive months of surplus. “The deficit came from a surge in imports from the United States,” said Takeshi Minami, chief economist at the Norinchukin Research Institute, noting a quadrupling of Japan’s purchases of US aircraft. He also noted that crude oil prices rose strongly, pushing Japan’s import bills higher. –CB Report

Since 1990, he served in various positions in the Federal Security Service of Russia in the Irkutsk region. From 2010 through September 2011 he was the head of the FSB of Russia in the Republic of Karelia, the first deputy head

of the department. Since September 2011 he was the head of the FSB of Russia in the Republic of Karelia. In December 2016 Mr. Seryshev was appointed Deputy Head of the Federal Customs Service.

SwISS takes oﬀ with summer Ticino cuisine

WISS will be serving light seasonal dishes from Switzerland’s Canton Ticino this summer to its First and Business Class customers on outbound long-haul flights. The creations by Lorenzo Albrici, the owner and chef de cuisine of the Ristorante Locanda Orico in Bellinzona, mark the latest chapter in the airline’s award-winning “SWISS Taste of Switzerland” inflight culinary programme. Re-

gional wines and cheese specialities complete the new offer. First and Business Class guests on Swiss International Air Lines (SWISS) intercontinental flights from Switzerland can sample all the culinary variety of Switzerland’s Canton Ticino this summer. Albrici will be presenting inflight creations that reflect his love of seasonal cuisine with Italian and French influences from June to September. –CB Report

uropean companies complain they still face a difSicult business climate in China despite Beijing’s pledges of openness, with about half saying it has become tougher in the past year, according to a survey released Wednesday. The study comes as President Xi Jinping looks to portray the world’s number two as being at the forefront of the globalization while trade tensions with the United States rise. “The root of the tension we see today starts with a China that has not opened up and reformed as quickly as it promised in its rhetoric,” said Mats Harborn, president of the European Union Chamber of Commerce in China. Among the litany of complaints for European companies were the uncertain legal environment, higher cost of labor, regulatory headaches and the “Great Firewall” that censors much of the

global Internet. “As its economy matures, the longstanding inefficiencies in China’s business environment are rendered all the more glaring,” according to the report by the EU chamber. Harborn told reporters that the “regulatory environment is actually holding the economy back.” is running out for China to continue its reform process,” Harborn said, noting 2018 must be the year Beijing acts. Instead Beijing has backtracked in some areas. New cybersecurity regulations make it more costly to jump the firewall, requiring businesses to sign up for expensive and problemplagued government-approved virtual private networks that allow users to circumvent filters and access the global Internet. Two-thirds of companies believe that censorship and blocking of certain sites has a negative impact on their business, while only 23 percent say the state-sanctioned VPNs are efficient.

Saudi PPP law to spur investment surge audi Arabia’s much-anticipated plans to bring in a private-public partnership (PPP) law will “make a difference” to the investor appeal of the Kingdom, say lawyers in the country. While Saudi Arabia has completed a number of infrastructure projects using a PPP structure such as the Madinah Airport scheme in 2012 the country still lacks speciSic regulations to govern such developments. “The law will regulate for the Sirst time the role of the private sector in terms of partnering with the public sector,” said Najem Al-Zaid, one of the founding partners of Riyadh-based ZS&R law

Sirm. “I’m optimistic and the signal we see from the Saudi government is that it is serious about introducing a transparent regime for FDI in general,” he said. “If the hunger and appetite from the investor is there, the law will come inevitably down the line,” said Turki Alsheikh, a lawyer at ZS&R. The long-awaited PPP legislation is part of a wider push by Saudi Arabia to encourage more private participation in the economy as part of its Vision 2030 and the National Transformation Program. “There’s a quantum shift going on here … which has to excite everybody. –CB Report

Russia & India ditching US dollar in defense deals

M MOSCOW

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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 sanctions 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 cur-

rencies 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. “This option was decided against as it would have opened up a lot of legal and audit issues, especially as defense deals are looked at very closely.

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ZTE drops 25pc after US lawmakers advance effort to restore export ban ZTE Corp dived on after American lawmakers green-lit a bill to restore severe penalties on the Chinese telecoms gear-maker, potentially upending a deal struck with President Donald Trump to allow it to get back in business. The company’s Hong Kong shares slid to their lowest level in two years, down 25 per cent to HK$9.85, while its Shenzhen stock fell by the 10 per cent daily limit. The sell-off ensued after the US Senate passed legislation on Monday that would restore penalties on the company, complicating Trump’s efforts to ease sanctions on ZTE after it pays a record fine and reshuffles management.

Services exports up 17.32 percent in april he exports of services surged by 17.32 percent on year-on-year (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 figures, the trade deficit during April 2018 decreased by 18.72 percent as it went down from the deficit 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

Ports & Shipping

Brisbane launches a logistics blockchain solution T

SYDNEY

China’s trade surplus Shrinks in first five months hina’s trade surplus shrank markedly in the first five months of this year, data from the Ministry of Commerce (MOC) showed. Exports reached 957.06 billion US dollars while imports stood at 857.39 billion dollars, leaving a trade surplus of 99.67 billion dollars, down 26.8 percent year on year. China’s trade growth in the Jan-May period in dollar terms stood at 16.8 percent year on year, the highest in seven years, according to Liang Ming, director of the foreign trade institute with the Chinese Academy of International Trade and Economic Cooperation, a think tank with the MOC. The country saw increased share of mechanical and electrical products among total exports and decreased share of exports of labor-intensive products. Import growth of integrated circuit, high-tech and energy products accelerated in the first five months of 2018. Liang attributed the steady trade growth during this period to the global economic recovery, stable domestic economic growth, and the development of the Belt and Road Initiative. –CB Report

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he 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 efSiciency. 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 efSiciency gains, industry leaders need to develop mechanisms which facilitate the integration and interoperability of commercial operators across the supply chain and logistics sector.” The blockchain platform is designed to improve productivity and reduce costs and the complexity of international trade by eliminating human errors and duplication of data inputs

Friday June 29, 2018

through digitization, as all recorded information is shared in real time and in an encrypted form through a decentralized ledger rather than kept in Siles of individual companies involved in the supply chain. The Trade Community System will address a number of points and recommendations from the recently released Inquiry into National Freight and Supply Chain Priorities Report. PwC partner, Ben Lannan said: “The port is the Sirst and last point of domestic contact in the international supply chain, and is the primary

point at which all signiSicant supply chain participants converge. To grow Australia’s trade competitiveness, we need to look beyond our ports. The Trade Community System proof of concept is the Sirst stage in building an innovative endto-end supply chain that will digitise the Slow of trading information, improve connectivity for supply chain participants, reduce friction for business and reduce supply chain costs, providing unprecedented productivity gains for Australia’s international businesses.”

Oil prices fall on expected output rise after OPEC deal 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 JulyApril (2017-18) were recorded at $4314.64 million compared to the exports of $4698.63 million in JulyApril (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. –CB Report

SINGAPORE

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rent crude oil prices fell over 1.5 percent as traders factored in an expected output increase that was agreed at the headquarters of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna. Brent crude futures, the international benchmark for oil prices, were at $74.21 per barrel at 0343 GMT, down 1.8 percent from their last close. US West Texas Intermediate (WTI) crude futures were at $68.40 a barrel, down 0.3 percent, supported more than Brent by a slight drop in US drilling activity. Prices initially jumped after the deal was announced late last week as it was not seen boosting supply by as much as some had expected. OPEC and non-OPEC partners including Russia have since 2017 cut

output by 1.8 million barrels per day (bpd) to tighten the market and prop up prices. Largely because of unplanned disruptions in places like Venezuela and Angola, the group’s output has been below the targeted cuts, which it now says will be reversed by supply rises especially from OPEC leader Saudi Arabia. Although analysts warn there

is little space capacity for largescale output increases. “Several ministers suggested that (rises) would correspond to a 0.7 million bpd increase in production,” said US bank Goldman Sachs following the announcement of the agreement, although it added that were risks “that Iran production may be even lower than we assume” and that its

output could fall further due to looming US sanctions. Still, Britain’s Barclays bank said OPEC’s and Russia’s commitments would take “the market from a -0.2 million bpd deSicit in H2 2018 to a 0.2 million bpd surplus.” Energy consultancy Wood Mackenzie said the agreement “represents a compromise between responding to consumer pressure and the need for oil-producing countries to maintain oil prices and prevent harming their economies.” In the United States, US energy companies last week cut one oil rig, the Sirst reduction in 12 weeks, taking the total rig count to 862, Baker Hughes said. That put the rig count on track for its smallest monthly gain since declining by two rigs in March with just three rigs added so far in June, although the overall level remains just one rig short of the March 2015 high from the previous week.

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US dollar touches new high of Rs122 in interbank market Friday June 29, 2018

Business

KARACHI: The US dollar climbed to a new high of Rs122 in the interbank market on , as the Pakistani rupee continued its slide in an apparent sign of vulnerability in the country’s economy. The dollar gained by a further Rs0.61 against the rupee to touch its new high in the interbank market, forex traders said. The dollar has gained by Rs6.38 in the interbank market since June 8. The greenback also reached its record high of Rs124.50 in the open market today, traders said.

NaB summons aleem khan, Monis Elahi ISLAMABAD

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he National Accountability Bureau (NAB) has summoned senior leader of the Pakistan Tehreek-e-Insaf (PTI) Aleem Khan and senior PML-Q leader Monis Elahi. The anti-corruption body has already geared up its investigation on probing the offshore companies of those 435 Pakistanis whose names have mentioned in PanamaLeaks The NAB has summoned Aleem Khan and Monis Elahi for July 10 and July 13 respectively and asked them to appear before the investigation team of NAB Lahore.

fDI slips to $2.4bn in 11 months KARACHI

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hile the country is in dire need of dollar inflows, the Foreign Direct Investment (FDI) fell by 1.3 per cent during the first 11 months of 2017-18, State Bank of Pakistan. The China-dominated FDI witnessed steep fall in May as it declined by $85 million to $238m. The political uncertainty could be one of the reasons for low foreign inflows. However, China kept its domination in the overall FDI compared to all other countries investing in Pakistan.

In the meanwhile, Wajid Bukhari, father of ZulSi Bukhari, appeared before the investigating team of the NAB Rawalpindi on Tuesday in an ongoing investigation of offshore companies of Pakistan leaked in Panama papers. It is

to be mentioned that ZulSi Bukhari, close friend of Chairman PTI Imran Khan, had appeared before the NAB’s investigation team on Monday and presented his details regarding the income source of his six offshore com-

panies and his business in London. It is pertinent to mention here that NAB Chairman Justice (r) Javed Iqbal and Chief Justice Mian Saqib Nisar have already taken notice of mega corruption cases including Rs1,000 billion green channel illegal clearances It was only Customs Today which exposed green channel mega scandal upon which the CJP took notice and ordered the FBR authorities to submit reply within 10 days. The court associate had sent letter to the NAB chairman for necessary action. Meanwhile, National accountability Bureau GilgitBaltistan arrested two ofSicers of the ofSice of Accountant General GilgitBaltistan According to a statement issued by NAB Gilgit, Nadeem Ahmed, deputy accountant general, and Riaz Ahmed, account ofSicer, had been arrested from their ofSice in Gilgit.

Mines & Mineral sector contributes 3pc to national gDP T

LAHORE

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he mines and mineral sector contributes 3 percent to the national GDP and this sector in Punjab provides the resource base to a number of industries including cement, soda ash, caustic soda, ceramics, glass, fertilizer, plastic, paper, Ghee, construction and steel industries. This was disclosed in a briefing given to Caretaker Minister for IC&T Mian Anjum Nisar here on

Wednesday. Briefing the minister, Secretary Dr Arshad that apart from these industries, the majority of mining activity was limited to the extraction and sale of raw minerals with very little and no value addition to the mineral through processing and industrialization. He said the mining industry in Punjab provides employment opportunities to nearly 40,000 workforce, including skilled, unskilled and professionals labor. He said that Mines and Minerals department had attached de-

partments included Directorate Generals of Mines and Minerals, Chief Inspector of Mines, Punjab Minerals development company and Punjab Mineral company. Speaking on the occasion, Provincial Minister Mian Anjum Nisar said, “We have to use all available resources to boost the economy and work hard as a team”. He directed the secretary Dr. Arshad to make possible that representative of Mines and Minerals be a part of all chambers and make foolproof security arrangements for the labourers.

Engineering goods’ export up 11.78pc in 10 months ISLAMABAD

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he export of engineering goods during July-April (201718) 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 JulyApril 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-on-month basis, the export of engineering goods in April 2018.

CPEC consortia run into problems over payment issues ISLAMABAD

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he Sinalisation of a few major energy sector transactions with Chinese Sinancial institutions and investors appeared in doldrums owing chieSly to prevailing uncertainties and jittery Chinese Sinancial institutions.Testifying before a parliamentary panel, Chief Executive of Hub Power Company

Khalid Mansoor said his company was working on $3.5 billion worth of energy projects under China-Pakistan Economic Corridor (CPEC) but their Sinancial closure had been stopped due to ‘bad-mouthing’ of some existing investors over nonpayments. “The consortiums are falling apart. I have requested Dr Shamshad Akhtar, the caretaker Sinance minister, to intervene” and salvage the situation because Sinancing for coal-based power gen-

eration including utilisation of Thar coal was possible only from China, he told a Special Senate Committee led by Senator Shibli Faraz. He said the investors in Sahiwal Coal Power Project started ‘badmouthing’ about Pakistan over nonpayment of about Rs16bn. Separately, he said he had also sensed that Shanghai Electric Ltd (SEL) may walk away from taking over K-Electric from troubled Abraaj Group because of lack of clarity and slow progress

on tariff and security clearance. Mansoor, representing about 21 Independent Power Producers (IPPs), explained that because of circular debt issue, the Sinancial institutions and investors in Sahiwal coal project had compelled the Pakistan authorities to enter into supplemental implantation agreements that enabled creation of special Escrow Account to ensure certain payments without any hindrance. Sponsors of one project ‘bad-mouthing’ the other; in-

vestors grow jittery However, when payments worth Rs16bn got delayed, their bad-mouthing made China Development Bank and other institutions like China Commercial Bank and others jittery. He said Hubco had one of the largest CPEC portfolio of about 1,600MW projects under process. He told media persons that the caretaker Sinance minister was concerned when informed about the situation and said it was a very serious matter.

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LCCI urges traders to avail tax amnesty scheme LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged the business community to avail tax amnesty scheme 2018 by the end of June. LCCI President Malik Tahir Javaid said that it is a golden opportunity for the business community to give legal status to their undeclared assets by paying 5 percent tax only. Income tax has been reduced to make tax payment more sustainable. He said that under this scheme, computerized national identity card (CNIC) number has been given the status of National Tax Number. He said that people having foreign exchange can purchase bonds from the government on which 3 percent annual proﬁt will also be given. He said that people with undeclared assets within the country will be able to bring them in the tax net by simply paying a ﬁve per cent penalty.

Call to review ban on non-filers from investing in property

Chambers

karachi Chamber of Commerce and Industry terms amnesty Schemes a failure

ISLAMABAD

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slamabad Chamber of Commerce and Industry (ICCI) has called upon the government to review the decision of putting ban on non-filers from purchasing property of Rs5 million and above in budget 2018-19 as it would hit remittances and entail harmful consequences for the economy. Talking to a delegation of Traders Welfare Association, G-8/1 here, acting president ICCI Muhammad Naveed Malik said that every year, overseas Pakistanis were sending remittances of billions of dollars that were playing crucial role in supporting the economy. He said almost 50 percent of the remittances were finding way to property and real

estate sector, but the new decision of the government would hit new investment in property sector. He said that out of the $20 billion remittances received, around $ 8-10 billion went into the property and real estate sector. He said that Pakistan needed more local and foreign investment to improve its economic growth, but putting ban on non-filers from investing in property would affect investment, especially in real estate sector. He said that Dubai has recently offered 10-year visa to investors and their families while Canada has also offered nationality against investment of $0.8 million. However, decisions were being taken in Pakistan that were not favorable to attract new investment in the country. He emphasized that the government should enhance the tax rate for non-filers and allow them to invest in property sector so that this sector could play more effective role in the economic development of the country.

Friday June 29, 2018

KARACHI

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he local business community head has said that the amnesty schemes are going towards failure. Karachi Chamber of Commerce and Industry (KCCI) President Muffasar Atta Malik, while referring to abrupt changes including exclusion of income earned during the current Siscal year from the scope of tax amnesty scheme and revised formula for valuation of foreign assets, stated that both these steps have terribly shaken the conSidence of individuals who were keen to avail these schemes, besides triggering anxiety amongst those individuals who have already declared their assets under these schemes but are now fearing arm-twisting by tax authorities. In a statement issued, Muffasar Malik urged the Chief Justice of Pakistan Saqib Nisar, Caretaker Prime Minister Justice (retd) Nasir ul Mulk and Finance Minister Dr Shamshad Akhter to take strict notice of Federal Board of Revenue’s (FBR) unlawful actions being applied in the

Amnesty Schemes through press releases and the response being displayed in shape of Frequently Asked Questions (FAQs) on State Bank of Pakistan’s (SBP) and FBR’s websites. “With hardly four days left as the Amnesty Scheme ends on June 30, 2018, FBR’s interpretations and selfcentred decisions would prove detrimental not only for the Amnesty Schemes but also for the country’s economy which direly needs foreign funds through Amnesty Scheme,” he

added. Muffasar Malik pointed out that although the schemes sounded good in the beginning when they were launched by the previous government but abrupt changes and misinterpretations by FBR which were mostly applied in the guise of FAQs, would terribly affect the fate of these schemes which now seem to be heading towards sheer failure. The two new clariSications will have sweeping repercussions on Foreign and Domestic Assets Declarations Schemes, which

Pakistan-Russia to further enhance trade relations RAWALPINDI

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minent economist, Dr. Shahid Hassan, received Russian Federation Foreign Minister’s special award. The Association of Pakistani Graduates from Russia & CIS hosted a ceremony for eminent economist Dr. Shahid Hassan for receiving a special award from the Foreign Minister of the Russian Federation, Sergey Lavrov, in recognition of his contribution for the betterment of mutual friendly relations. The Ambassador of the Russian Federation to Islamic Republic of Pakistan H.E Alexey Yourivich Dedov was the Chief Guest while the National Security Advisor Lt. Gen (R) Nasser Khan Janjua was the Guest of Honor. Large number of senior diplo-

mats of the Embassy of the Russian Federation in Islamabad, businessmen, senior civil and retired military ofSicers also attended the event. Addressing the ceremony, Ambassador of the Russian Federation appreciated the efforts of Dr. Shahid Hassan for promoting friendly relations between Pakistan & Russia and put light on his tremendous contribution for strengthening and promoting economic, cultural and friendly relations between the two countries in recognition of which Russian Foreign ministry decorated him with a welldeserved award. National Security Advisor Lt. Gen (R) Nasser Khan Janjua also appreciated the wonderful contribution of Dr. Shahid in promoting friendly relations which gave opportunity to both countries to collaborate in many areas. Zahid Latif Khan, President Rawalpindi Chamber of Commerce and Industry

(RCCI), in his address highlighted the importance of close relationship between Russia and Pakistan. He said that there is a need to further capitalise on the bilateral relations by exploring mutually beneSicial avenues for bilateral cooperation. He said Russia is one of the reliable supporters of Pakistan and both the countries have been enjoying friendly and cordial relationship and understanding on all the major global and regional issues. Gradual improvements are taking place as Pak-Russia trade volume had increased from $400 million to $541 million over the last few years. However, more efforts need to be done as huge potential exists to raise the current trade volume. He stressed to re-design existing trade strategies to have a wider and pragmatic co-operation in trade and investment between the two countries.

will erode the trust of people who had just started availing them after waiting for more than a month, he added. He said that FBR’s decision to exclude declaration for the income earned during July 1, 2017, till April 9, 2018, was against the Voluntary Declaration of Domestic Assets Act of 2018 approved by the parliament which clearly states, “Subject to the provisions of this Act, any person may make, to the Federal Board of Revenue…a declaration in respect of undisclosed income and domestic assets acquired before the tenth day of April 2018”. Muffasar Malik further pointed out that in another disappointing move, the FBR has also introduced a new explanation about the valuation of foreign assets in which it has been stated that Pakistani Rupee value of an asset would be determined by SBP according to the exchange rate on the date of Siling declaration which would obviously raise the value an asset acquired many years ago. After the applicability of these explanations, the effective tax rates for domestic and foreign assets schemes will be considerably higher than the rates approved by parliament, he added.

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. The concern of the industry with necessary clarification had already been conveyed to the ministry of commerce and other departments concerned in writing repeatedly for elimination of related HS codes.

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Tax evasion: KP PRA seals M/s Awais Motors Peshawar PESHAWAR: The Khyber Pakhtunkhwa Revenue Authority Enforcement team sealed the business premises of Awais Motors Kohat Road Peshawar for an alleged tax default on services of Rs68,177,660/- under the Enforcement Power Rules 2017. The KP Revenue Authority (KPRA) Enforcement team headed by Deputy Collector Sharif Ullah and comprising of Enforcement Oﬃcer, Assistant Collector, Inspectors and other supporting staﬀ conducted raid in the area of Kohat road Peshawar and sealed Awais Motors Business premises for not paying sales tax on services.

Friday, June 29, 2018

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Quetta I&I foils bid to smuggle NDP goods worth Rs7.88 million QUETTA waQaR ahMED aNSaRI www.customsbulletin.com

he Directorate of Customs Intelligence and Investigation foiled a smuggling bid of general items include electronics shaving razors, shaving foam, perfumes, shampoos, facial mask and other items priced at Rs7.88 million. Sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Chaudhary received secret information that some smugglers are trying to smuggle of non duty paid general item from Quetta to different cities. He constituted a raiding team under the supervision of Superintendent Muzaffar Ali and others. The team enhanced the surveillance of Quetta Highway ( Exit road) and started the search of vehicles. The team intercepted a commercial truck full of cooking oil cane, registration No: MSG-8476 which was going from Quetta. During the checking, the customs team recovered 300 packets of electronic shaving razors, 500 international non duty paid perfumes, shampoo bottles and facial mask valued at Rs 7.88 million.

DC Saima orders to release tyres, Mazda truck to owner FAISALABAD

NaEEM ShEIkh

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he Collectorate of Customs Adjudication Deputy Collector Saima Ayyaz released the seized foreign origin new tyres and Mazda truck after the issuance of Order in Original by the Customs Adjudication. Sources told Customs Today that Customs Intelligence and In-

vestigation intercepted a Mazda truck and recovered foreign origin new tyres of different size and brands. The smuggled tyres were being transported from Karachi to Faisalabad. The seizing agency confiscated items and carrier vehicle under Section 168 of the Customs Act 1969 and forwarded the case to the Adjudication Department for further legal action. After hearing of the seizure case, Deputy Collector Saima Ayyaz issued ONO No 79/2018 and gave directions for the release of said tyres after the as-

sessment of the impounded items. Zafar Hussain son of Manzoor ahmed Charagh has been imposed 20 percent fine under section 181 of the Customs Act 1969 as penalties for the release of vehicle. Meanwhile, The stealing of large number of mobile phones from State Warehouse (SWH) of Faisalabad dry Port is a big challenge being faced by the dry port management. Sources told Customs Today that Customs Collectorate has submitted a First Information Report (FIR) number CJ-

6/23/2018-863 against suspect involved in theft of 1661 mobiles having value of Rs 11741999. Brief facts of the case are that Inspector Safdar Ali unlock warehouse for delivery of the auction able goods from the godown. When he approached towards the fenced area where confiscated mobiles phones were kept, he noticed the breakage of the bars and were found cut and folded upwards. He closed the godown and reported the incident to officer concerned and contacted technical team for gathering infor-

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mation from CCTV footage recording. The CCTV footage shows that incident happened between 1:40 am to 3:00 am whereas four persons are visible in their footage who cut the bars of the fence area and took away 1161 pieces of foreign origin mobile phones. It is necessary to mention here that these kind criminal activities were a routine matter at Faisalabad dry port and a number of costly items including diesel oil spare parts and batteries were stolen from vehicles of the customs and others staff.