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Karachi, Sat June 3, 2017
KARACHI
WAQAR ANSARI
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he Directorate of Post Clearance Audit (PCA) has made remarkable performance during the month of May 2017 and detected 36 cases involving revenue of Rs 210.377 million. Sources told Customs Today that Post Clearance Audit headed by Director
Gul Rehman detected cases pertaining to short payment of customs duty and sales tax/WHT because of inadmissible concessions, short payment of anti-dumping duty, additional sales tax, FED and income tax. The Directorate served 12 contravention reports and 27 audit observations during May 2017 involving total of duty and taxes of Rs 210.3 million. The companies served audit observations or contra-
Vol 2, Issue No. 148
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vention reports include Bulk Containers in PICT, M/s Nestle Pakistan Limited, M/s MN Enterprises, M/s Colgate Palmolive, M/s Yousuf Enterprises, M/s G and K enterprises, M/s Malik Corporation, M/s Horizon International, M/s GM Enterprises, and others. The Directorate General of Post Clearance Audit (PCA) has unearthed tax evasion of Rs270 million by importers in April 2017.
Customs Preventive seizes non-duty paid Toyota Hilux Surf
“Govt reduces five percent tax rate due to increase of taxpayers”
Financial deficit of Pakistan Railways decreased significantly: Saad
Collector Zulfiqar distributes workload among two deputy collectors
‘Amended section 7 under customs laws to curb smuggling activities’
ASO has registered the FIR against accused, whowereallegedlyinvolvedinevadingtaxes | See pAge 02 |
Ajmal has declared the newly announced budget the best one as it has reduced taxes | See pAge 03 |
Saad has said that the financial deficit of the PR has significantly decreased | See pAge 04 |
Collector Zulfiqar Ali has distributed workload among two deputy collectors | See pAge 14 |
New amendments in federal budget for FY 2017-18 are welcoming on the subject | See pAge 16 |
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Peshawar ASO impounds goods & vehicles valued Rs74.48m Saturday, June 3, 2017
PESHAWAR: Anti-Smuggling Organization (ASO) Peshawar impounded various kinds of smuggled goods, Non-Duty-Paid (NDP) vehicles and offending vehicles (vehicles used for carrying smuggled goods) worth Rs74.48million during 1st to 26th of May of Financial Year (FY) 2016-17. According to Zakir Muhammad, Deputy Collector ASO Peshawar, the performance of the ASO squad is good during the month of May FY2016-17. During said period, the ASO impounded six NDP vehicles whereas the ASO Peshawar did 10 offending vehicles and seized different types of smuggled goods valued millions and lodged cases against tax evaders.
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customs preventive seizes non-duty paid toyota hilux Surf
cabinet Division deposits Rs17.1m deferred payment into Afu account ISLAMABAD
KARACHI
m A ABDuLLAh
tARIQ DeRYA
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ederal Cabinet Division deposited Rs17.1million deferred payment of Customs Duty whereas the Passport Department deposited Rs14.00million into the account of Air Freight Unit (AFU) Islamabad on 26th of May of Financial Year 2016-17. The Pakistan International Airline (PIA) has been asked to deposit Rs2.1million CD and Sales Tax (ST) and it has also been sent a reminder to deposit Rs20million more CD and ST within the next two to three weeks of next month of May FY2016-17. This payment was payable under the head of duty and taxes on import of aircraft. The AFU is facing a shortfall of Rs200million during Financial Year 2016-17 whereas he whispered that the AFU will chase the shortfall during the next coming months (May-June FY16-17). Above said payments will help the AFU compensate the shortfall. To chase the revenue shortfall, the AFU will have to deposit Rs130million’s worth of gold into the Mint Department Lahore which will reach the account of the AFU within the current month. He said the AFU is also facing a decline in collection of Customs Duty against the revised target.
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www.customsbulletin.com he Customs Collectorate of Preventive, Anti Smuggling Organisation (ASO) has registered the FIR against accused, who were allegedly involved in evading taxes of around Rs 1,849, 706, and launched investigation regarding the matter. The complainant, Senior Preventive OfRicer, Customs House, Azhar Malik, in the FIR mentioned that Syed Altaf Hussain and Muhammad Naveed Haider (both absconders) were allegedly involved in using smuggled/non-duty paid vehicle, Toyota Hilux Surf, Registration No: WAA-833 and this particular vehicle was spotted near Ashfaq Memorial Hospital, Budh Bazar Ground, in Gulshan-e-Iqbal, Karachi. The FIR mentioned that a team was constituted to watch and intercept the vehicle. The Customs team found the Toyota Hilux Surf in Gulshan-e-Iqbal locality while Syed Altaf Hussain introduced himself as an owner of the vehicle to the visiting team. According to the FIR, Syed Altaf Hussain was asked to produce the documents to substantiate the lawful import, procurement and possession of the said vehicle to which he produced a certiRicate of Registration bearing No:NC0059546 of Motor Registering Authority Quetta showing the details of vehicle as Toyota Station-
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Wagon, Chassis No:LN61-0021877, Engine No:2L-3266361, Model 1998, 2446 CC whereas the actual vehicle was Yoyota Hilux Surf (Jeep). The FIR revealed that vehicle was taken into possession in the presence of musheers namely Danish Khan and Muhammad Moeed under Mushirnama prepared on the spot and escorted at ASO/HQ, NMB Wharf, Karachi, for detail examina-
tion and investigation. It also mentioned that Toyota Hilux Surf was appraised value at Rs48, 96, 833/- from appraisement collectorate. As per the FIR, separate inventory including mentioned details and accessories was also prepared in presence of both musheers as well as occupant of the vehicle, which was detained for veriRication
of records, police forensic examination and veriRication. The FIR shows that further inquiry and forensic test report No:AIG/FD/Veh/OR/178/2017, conRirmed that no other number has been deciphered under the present chassis serial (LN61-0021877). However, the half chassis number frame is welded and replaced at the site of original chassis frame.
govt continues zero-rate sales tax for export sector F
ISLAMABAD
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inance Minister Senator Mohammad Ishaq Dar has announced to continue zero-rate sales tax for export sector in Riscal year 2017-18. In his budget speech on Rloor of the house, he highlighted relief measures for textile and other export sectors, which included: (1) Mark-up rate on Long Term
Financing Facility stands reduced from 11.4 percent to 5 percent; (2) Duty free import of textile machinery is allowed; (3) Uninterrupted supply of electricity and gas is ensured for the textile sector; (4) Technology Up-gradation Fund (TUF) Scheme 2016-19 for the textile sector has been introduced; (5) Prime Minister’s package for exporters was announced in January 2017 in which the centre-piece is the textile sector;
(6) The government made Rive export oriented sectors – including textile, leather, sports goods, surgical goods and carpets – as part of zero-rated sales tax regime last year. This will continue during the next Rinancial year; Similarly duty free import of textile machinery will continue. All the measures announced in FY 2016-17 will be continued in FY 2017-18. Maintaining the past tradition of supporting the textile sector, following measures are proposed in the FY 2017-2018:
(1) To stabilise cotton prices in the country, a system of cotton hedge trading for the domestic cotton will be initiated in consultation with stakeholders; (2) In consultation with public and private stakeholders, the government will launch Brand Development fund for textile sector; (3) The approval process of establishment of 1,000 stitching units has been completed and its implementation will start during FY 2017-18 and shall be completed in
three years; (4) Textile Ministry will launch the Rirst ever online textile business/trade portal for textiles using B2B (business to business) and B2C (business to consumer) mode. This will bring Pakistan textiles’ value chain in line with global marketing practices. Pakistan’s exports have suffered due to slowdown in global trade and reduction in commodity prices. To increase exports, the government implemented a number of initiatives which will also continue for the next year.
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Ministry to spend Rs 554.291m to expedite natural resources’ exploration ISLAMABAD: Ministry of Petroleum and Natural Resources would spend Rs 554.291 million, under the Public Sector Development Programme (PSDP 2017-18), to execute four ongoing and two new projects to step up exploration activities of natural resources for achieving self-reliance in the energy sector. According to the PSDP, Rs 415.807 have been earmarked to acquire four drilling rigs and their accessories for the Geological Survey of Pakistan. While Rs 37.977 million would be spent on appraisal of newly discovered coal resources in Badin and its adjoining areas of Southern Sindh.
fIA Dg orders enquiries against 20 officials over corruption
Saturday June 3, 2017
National
‘govt reduces five percent tax rate due to increase of taxpayers’
LAHORE
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ederal Investigation Agency (FIA) Director General Muhammad Amlesh has ordered enquiries against 20 allegedly corrupt FIA officials. The DG FIA ordered assets probe against the following 20 FIA officials: Waqar Haider, PSP, posted as Director Intellectual Property Rights (IPR) at FIA Headquarter Islamabad, Nasrullah Gondal , Deputy Director, Tahir Jan Durrani, Assistant Director, Alam Zeb, Assistant Director, Munawar Iqbal Ranjha, Assistant Director, Sohraab Maalik, Assistant Director, Rizwan Aslam, Assistant Director, Hamood ur Rehman Mengal, Assistant Director, Kausar Mehmood, Inspector.
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Dc Asma declares seizure of sulfocid acid as legal FAISALABAD
NAeem SheIkh
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he Collectorate of Customs Adjudication Deputy Collector Asma Hameed ordered to seize the sulfocid acid under the customs laws, besides giving an option to redemption fine of 20% of the custom differential value of the goods to be appraised by customs on payment of duty taxes. According to the details, Deputy Collector Asma Hameed issued Order in Original (ONO) while hearing a case against Muhammad Mobeen Adnan detected by Customs Intelligence and Investigation Faisalabad. Following credible information regarding the smuggling of sulfocid made in Iran through a trailer, the customs staff intercepted a trailer bearing registration no: FSA-856 near Jhang Road. The officials recovered smuggled sulfocid acid which was lying on the side trailer.
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ISLAMABAD
m fAIZAN
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resident Anjuman-eTajraan Pakistan Ajmal Baloch has declared the newly announced budget the best one as it has reduced taxes on some goods including IT and agriculture sectors’ items. Besides these measures, taxpayers have been given some relief and the noose around the neck of the nontaxpayers or non-filers has also been tightened. Ajmal Baloch said this while giving an interview to Customs Today. Baloch said the government has imposed new tax measures worth Rs130billion. This amount is nothing as compared to the subsidies and concessions government has given and introduced in the current budget. He admitted that there is nothing in the budget for the ordinary countrymen. He remarked that every person should pay the tax so that burden can be divided equally on all. The government has reduced five percent tax rate because the numbers of taxpayers and filers have been increased from 0.7 million to 1.225 million. The government is also trying its best to bring more taxpayers in the tax net so that more ratio of tax can be reduced. “In my opinion, this is the only way that government
can share a tax burden with the people otherwise government will have to put the burden again on old taxpayers”, he added. He further said though it is the last year of the tenure of the government therefore it has presented a good budget yet it does favor the poor. No new tax has been imposed or increased on local items so prices of local items should not be hiked, he opined. We all trader community will discourage the in-
the government has reduced five percent tax rate because the numbers of taxpayers and filers have been increased from 0.7 million to 1.225 million
tevta to increase interest free loans for students
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LAHORE
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hairperson Technical Education and Vocational Training Authority (TEVTA) Irfan Qaiser Sheikh has said that TEVTA will increase the interest free loans for its pass out students from Rs 500 million to Rs 1000 million. While addressing a meeting of TEVTA ofRicials on Monday at TEVTA secretariat, he said that a
huge amount of Rs 2,000 million was being spent on infrastructure and now the same amount is being spent on human development. T he TEVTA has decided to double the amount of interest free loans to TEVTA graduates as per the vision of Chief Minister Punjab Shehbaz Sharif, Irfan said. Chairperson further said that making youth of Punjab skilled and providing them a reasonable opportunity to earn money through interest free loans is the priority of Punjab government. TEVTA
is playing its part in this regard at its best, he said. He said that till now, TEVTA in collaboration with Akhuwat Foundation has provided interest free loans to more than 7000 students. He added that Japan and Turkey had provided such loans to its students for helping them in establishing their own set up. “Everyone can witness where these both countries stand globally,” he added. He said that in Canada, a skilled person is getting salary of seven times greater than a simple graduate.
flation, he stressed. We were expecting heavy taxation and strict measures but government has decided to tackle the problems through better management instead of imposition of heavy taxation, he said. I hope a new government will follow these steps, he predicted. “We traders are with Pakistan only, not with any political party. If any government takes good steps for public, we will always support it”, he concluded.
customs to auction vehicles on June 10 wadar Model Customs Collectorate will hold auction of vehicles and seized goods on June 10, 2017 at Gaddani. As per the details, Gaddani Customs will present vehicles, scrap of dismantle tempered vehicles, clothes air conditions, cigarettes , tyers, mobile oil, grease, skimmed milk powder, plastic sheet roll and others misc goods in the auction.
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CNG association rejects surge in taxes ISLAMABAD: The All Pakistan CNG Association has rejected increased taxes slapped on the CNG sector in the recently-announced budget and called for its immediate reversal. Tax on the CNG outlets have been increased which will result in problems for the CNG operators and masses; therefore, the government should review its decision and retract the move, said APCNGA Central Chairman Ghiyas Abdullah Paracha. He said that CNG station owners continued to pay four percent withholding tax and 26 percent sales tax on the amount of gas consumed, he added.
Saturday June 3, 2017
Business
‘financial deficit of Railways decreased’ LAHORE
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inister for Railways Khawaja Saad RaRique has said that the Rinancial deRicit of the Pakistan Railways has signiRicantly decreased as its operations improved during the last four years. Addressing a seminar in Lahore, he said, “The performance of Pakistan Railways is promoted on modern lines to provide safe, inexpensive and fast mode of travelling to the passengers.” He said, “The condition of Railways was very pathetic in 2013, but the Pakistan Muslim League-Nawaz (PML-N) government worked day and night
cDA releases Rs9.07m for water supply ISLAMABAD
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to put the department on track to development.” He said, “The policy of merit has been promoted in Pakistan Railways and indiscriminate
ppIB issues LoI for 300 mW coal power project at gwadar
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apital Development Authority (CDA) has started development work at sector I-16 after decades and Rs 9.07 million have been released for water supply. The sector was opened decades ago but no management of CDA had given proper attention to the said sector. Mayor of Islamabad and Chairman CDA, Sheikh Anser Aziz said that like different other residential sectors, Sector I-16 also remained stalled due to negligence of past managements.
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action is taken against corrupt ofRicials.” He said, “The government is taking important decisions for the improvement of Pakistan Railways.
Pakistan Railways is being upgraded from its own resources.” Meanwhile, Pakistan Railways (PR) has set Rs 53 billion as a target of income for the Rinancial year of 201718 which is 32 percent higher than the target set in current Riscal year. According to PR sources on Thursday, Railways has Rinalised its working paper on performance and income for the next Rinancial year. Railways is expecting 32 percent record increase in income in the upcoming Rinancial year as compared to the current year while the target of income set in the upcoming budget would be 94 percent more then the target set in 2013 by the Railways. PR would break its record of income and performance under the leadership of Railways Minister Khawaja Saad RaRique in the upcoming years, the sources said.
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ISLAMABAD
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rivate Power and Infrastructure Board (PPIB) has issued Letter of Interest (LoI) to China Communications Construction Company Ltd (CCCC) for development of 300 MW Imported Coal-Rired Power Project at Gwadar. This project is a component of Rlagship China Pakistan Economic Corridor (CPEC) initiative of the governments of China and Pakistan. The document was signed by Managing Di-
rector PPIB Shah Jahan Mirza and from the company’s side it was signed by Vice President of CCCC Xu Jun, a press release Tuesday said. M/s CCCC would develop the 300 MW power project utilizing imported coal at Gwadar, Balochistan. The company will obtain tariff approval from NEPRA and start construction after achievement of Financial Closing. The said project has been approved by the Joint Cooperation Committee (JCC) of CPEC and the PPIB Board for further processing. Gwadar city is blessed with a warmwater, deep-sea port situated on the Arabian Sea at Gwadar in Balochistan
province of Pakistan. The port features prominently in the CPEC framework, and is considered to be a crucial link between the ambitious One Belt, One Road and Maritime Silk Road projects. The economic activities foreseen at Gwadar in the near future would require a reliable power supply. With the addition of 300 MW Gwadar Power Project, the portfolio of power generation projects being processed by PPIB has numbered to nine coal based projects of 8220 MW and three hydro based projects of 2714 MW constituting aggregate total of twelve projects of 10934 MW under the CPEC.
poultry industry offers mixed review of budget KARACHI
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oultry farmers have offered a mixed view of the budget for the upcoming fiscal year, saying that not all of their demands have been met. In a statement, the Pakistan Poultry Association (PPA) said a reduction in the import duty on grandparent and parent stock, being the basic multiplication seed for poultry, will help spur poultry farming. Grandparent birds are the progeny of pedigree stock bred largely by three global companies, Aviagen, Cobb-Vantress and Groupe Grimaud. They are the foundation of the poultry production sector. Parent birds are bred from imported chicks that produce broiler chickens. The association said that its demand for bringing the sales tax on poultry farming machinery on a par with agriculture greenhouse tunnel farming has not been fully accepted. Similarly, the PPA said its proposals to help the poultry processing industry fight against the duty- and sales tax-free imports of poultry products have also not been accepted. At present, imports of value-added chicken products under free trade agreement with Malaysia are duty-free, imports from China have 10pc to 16pc import duty, whereas imports from India attract 5pc import duty.
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Rs554 million released this year for revival of forestry ISLAMABAD
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he government has released an amount of Rs554 million during this year to ensure implementation of Revival of Forestry Resources under Prime Minister Green Pakistan Programme. The total cost of the programme is Rs.3652.1 million which has been launched to increase forest coverage
and facilitate transition towards environmentally resilient Pakistan by main-streaming notions of adaptation and enabling policy environment. Sources at Climate Change Division on Tuesday said objectives of the programme will be achieved by implementing different initiatives and projects. It has two major projects and will be implemented over a period of Rive years (2017-2021). The objectives planned to be achieved include one hundred mil-
lion new indigenous plants including 20 per cent fruits plants to make the country green and serene. These include one thousand avenue miles of canal/roadside plantation in Punjab, Khyber akhtunkhwa and Sindh; Olive and Kikar Phulai forests in Kala Chitta, Pabbi Rasul and Fort Monroe scrub forest of Punjab; Dry temperature forest in Federally Administered Tribal Areas (FATA), Guzara forest in Murree/Kotli Sattian and Hazara and protected forests of Malakand region
in Khyber Pakhtunkhwa (KPK); Mangrove forests in Karachi and Badin along with scrub hill forests of Khirthar range in Sindh; Juniper forests of Ziarat and Chilghoza forest in Suleiman range of Balochistan; Watershed and soil conservation plantation and operations in GilgitBaltistan and AJK moist tropical forest areas. Historic Irrigated Plantation of Changa Manga, Daphar, Bahawalpur and Chichawatni; The other project is Strengthening Policy
Measures for Conservation of Biodiversity and areas to be focussed include approval and implementation of National Biodiversity Strategy and Action Plan; Establish strategic support units at national and provincial level to ensure smooth implementation of ongoing green initiatives and plan future activities on sustainable basis; Supporting communication measures and demand mobilization for an environmentally resilient Pakistan.
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Saturday, June 3, 2017
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ISLAMABAD
m ARShAD
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he Senate Standing Committee on Finance and Revenue, deliberated 19 clauses of the proposed Finance Bill for the fiscal year 2017-18. These clauses were related to the Customs Act. Last year, the Federal Board of Revenue (FBR) suggested amendments to the Customs Act 1969 Section 155-H and proposed two new clauses after the existing clause (c) in budget 2016-17. Then the FBR justified that Section 155H relates to confidential information. This is quite restrictive. The customs administration already signed bilateral cooperation agreements with other Customs administrations where data exchange through EDI or otherwise have been agreed. This needs to be provided legal cover. The Finance and Revenue Committee met here with Salim Mandviwala in the chair to consider and finalize the recommendations on the Finance Bill 2017-18, containing the Annual Budget statement laid in the House on May 26 and referred to the committee by the Upper House of the Parliament. Due course of the discussion on the
said clauses of the Finance Bill related case the machinery, equipment, appato Customs Act, the Chairman Com- ratus, appliances, components, submittee pressed on making the Customs components and parts had undergone Act more and more people friendly by any alterations, renovations, additions scrutinizing each and every word, or repairs prior to their re-import into comma, colon and even the semi colon. Pakistan, the cost incurred on such alThe concerned clauses of the Finance terations, renovations, additions or reBill have proposed establishment of pairs (excluding the element of freight Director General of Customs to facili- and other incidentals) shall be liable to tate the import of machinery and other duty as leviable under its respective products related to China-Pakistan PCT heading determined at the time Economic Corridor (CPEC). Similarly, of original import provided the same the clauses have also proposed uni- was or were, as the case may be, exform as a binding for staff of Pakistan ported under a contract of alteration, Customs as well as inclusion of Motor- renovation, addition or repairs and way and High Police into the package that the supplier and the receiver as of CPEC. Last year, the federal well as the make, model, weight and government introduced a other speciRications remain the number of amendments in same as were at the time of the Customs Act, 1969 (IV the original import. of 1969), in the First Schedule which stated that as per amendments machinery, equipment, apparatus, appliances, components, sub-components and parts not produced or on re s s e d p manufactured in Pakistan e e t m o re mmit which were re-imported by an co e and r m o r i m a t h d industrial concerns after ms Ac th e c ch an having been exported and custo ng ea i e z i h n t i t g u the had not undergone any makin by scr even y l d d n n a process outside Pakistan e frie colon the peopl ses of mma, u o since their exportation. In c a l , c d f r d
wo ent o cerne every e con blishm h a t t . s n e the ed colo litate ro p o s i semi p c a e f v o l ha oms t ce Bil duc ts f cust o finan l e r p ro a r h t e o n e d or g er y an D i re c t achin m f pec o t d to c impor relate
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Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDItoRIAL
Achieving economic stability
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ill Pakistan ever achieve economic independence is a million dollar question as most of its policies are based on foreign assistance, especially on the Chinese loans. The Chinese influence on the economy is growing and some experts believe the move will bolster economic independence of the country. However, others argue the country is heading toward attaining fiscal independence without giving least consideration to the Chinese assistance. The Chinese loans and grants have their own merits and demerits and may have no short term effects whatsoever, but the country will have to be ready to face some implications in the long run. The Pakistan’s economy has now crossed $300 billion mark, which indicates that it is going on the right direction, but a lot of work is still required to be done. In a country of 200 million, only 1.1 million pay taxes and half of the taxpayers are from salaried class. This shows that documentation of the economy is the major area of concern which is being ignored at all levels. Experts believe the government either botches the tax laws or make a mess of the tax collection producer. It has so far failed to introduce structural reforms in the tax machinery and rid itself of the black sheep. However, it is good omen that the government is struggling to revive economy, but it should also launch a drive for documentation of the economy, and should record the volume of foreign loans, investments, business potentials and industrial output. The growing dependence on loans and imbalance between imports and exports could lead to many complications. According to a recent report of the State Bank of Pakistan,a drop in the Pakistan’s net reserves is largely due to the discrepancy between imports and exports and this has pushed Pakistan to seek further loans from foreign donor agencies to pay off the previous loans. Pakistan is required to pay nearly $13 billion as markups on loans which it took last year. Pakistan has received more than $1.2 billion in loans from China in one year. The money is used to ward off devaluation of the Pakistani rupee or save the country from imminent currency crisis. The government is not willing to take loans from the International Monetary Fund after it completed a three year extended facility programme, but it is also looking toward other sources to stabilize the economy.
Railway needs attention R
LAHORE
DR AftAB AfZAL
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ailway is one of the barometers of the economy. However, the Pakistan railway has been passing through a deterioration process for the last many decades due to negligence and apathy of the government authorities. Dozens of train routes have been suspended or permanently closed and many railway tracks are either stolen or scraped thanks to rampant corruption in the department. Precious land and property worth billions of rupees has been illegally occupied across the country by dif-
ferent mafia groups and millions of rupees are spend annually on Mayo Gardens to renovate the residential area of the senior railway officials. The department was the gift of British raj for the people of subcontinent, sprawling over width and length of the undivided land. Instead of improving the railway tracks or introducing bullet trains after independence, railways started decaying, incurring billions of rupees annual losses.The successive governments have failed to plug the loopholes which are syphoning off the departmental resources or to identify the causes of regression. The situation has reached a point that
the whole railway department needs attention and sooner the measures are taken the better. As economy of the country is growing, railway could be used as the cheap source of transportation in import and export of goods. The government has allocated Rs 42.9 billion under the Public Sector Development Programme to finance new and ongoing projects for the financial year 2017-18.After part of the railways is covered in the China Pakistan Economic Corridor the government has now planned to upgrade the main line rail track between Karachi and Peshawar. According to Railways Minister Khawaja Saad
Rafique, the government is in process of negotiation with Asian Development Bank to get a concessionary loan of $2.5 billion to rehabilitate this vital department. Railway was the major service provider of the country at a time, but now has lost its strength. A democratic government is in the office and it is hoped the loan money will be judiciously utilized in the uplift schemes. The government can invite international tenders to launch bullet train between Peshawar and Karachi on built, operate and transfer basis. This will not only give the best mean of transportation to the citizens, but will also shed traffic burden on highways and motorways.
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UAE, Japan non-oil trade reaches $14.6 billion in 2016 SINGAPORE: Singtel is partnering with local education institutions’s Ngee Ann Polytechnic and Temasek Polytechnic to help Singapore’s small to medium business enterprises “with heritage” adopt digital technology. The collaborations are part of Singtel’s 99%SME initiative to help small to medium businesses use digital tools to get online, reach out to a wider customer base, and develop e-commerce capabilities. Andrew Lim, managing director, business group, group enterprise at Singtel, said, “Many SMEs with a long and rich heritage do not have the resources to market themselves effectively online or connect with younger, digitally savvy customers”. “Our partnerships with the two polytechnics allow us to help these SMEs evolve and digitalise their businesses, to preserve their heritage.”
federal budget seems initiative to give relief to common man: LccI KARACHI
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he federal budget for fiscal year 2017-18 announced on Friday by Finance Minister Senator Ishaq Dar `seems to be an initiative to give relief to the common people to some extent’. `It may be called a balanced budget for the economic revival and to resolve energy crises, investment promotion and to boost agriculture production’, remarked Ismail Suttar, President, Lasbela Chamber of Commerce and Industry. He opined on Saturday that more steps are required to ensure industrial growth and to address the difficulties to achieve export target. Suttar was of the view that concrete steps should
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Chambers
Reduction in customs duty on various industrial items lauded R
LAHORE
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eduction of customs duty on various industrial imported items including stock of chicken and, stamping foils, aluminum waste, skins & hides and pharmaceutical items is appreciable. Increase of taxes for non-Rilers is good but taxpayers should be given maximum facilities. Poor were ignored in the budget. These views were expressed by traders and industrialists following the Federal Finance Minister Ishaq Dar’s budget speech at the Lahore Chamber of Commerce and Industry. They said that said increase in allocations for water and power projects would help get rid of energy crisis. Funds for infrastructure development would also attract foreign investment. It was added that increase in defence budget was need of the hour as country is facing security challenges. They welcomed supportive measures for agriculture, poultry, textile sectors and human resources. The traders said that business community was expecting zero rated fa-
cility for food sector to get due share in the international trade. They said that establishment of infrastructure bank would give immense beneRits to the agriculture sector. They said that 10,000 megawatts additional electricity in the system would help overcome energy crisis. They said that increase of taxes for non-Rilers is good but taxpayers should be given maximum facilities.
LCCI President Abdul Basit said that a number of good announcements have been made in the Federal Budget 2017-18 while some features need attention. He said that over Rs.1400 billion have been allocated for debt servicing that shows the bad effects of debts to the economy. He said that Kalabagh Dam is once again ignored. They said that raids and
Dubai chamber hosts customs and trade facilitation forum also be undertaken for the promotion of hydel power generation to take advantages of hydel power potential in the country. He maintained that big volume debt is also a burden on the economy for which Rs 1,400 billion have been allocated for debt servicing. This amount should have been spent on the infrastructure development of the country. The reduction of duty and taxes on various machinery and industrial items would however leave positive effects on the industry to some extent `but cannot be termed as incentive’. He also appreciated the measures taken for the agriculture growth.
Saturday June 3, 2017
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he Dubai Chamber of Commerce and Industry said it hosted the recent Customs and Trade Facilitation Forum in partnership with the UAE Chapter of the International Chamber of Commerce (ICC-UAE). More than 100 delegates, including senior ofRicials from the ICC-UAE, World Customs Organization, Dubai Customs and representatives from Dubai’s business community, attended the forum in which industry experts share insights on global trade, the Dubai chamber said in a release. The delegates discussed industry trends, including digitalization, e-commerce
growth challenges, the beneRits of the World Trade Organization’s Trade Facilitation Agreement and the framework for the forthcoming Gulf Cooperation Council-wide value-added tax (VAT). Speakers at the event included Atiq Juma Nasib, the Dubai chamber’s senior vice president of commercial services; Humaid Mohamed Ben Salem, chairman of the ICC-UAE; and Ahmed Mahboob Musabih, director of Dubai Customs. Musabih spoke about how Dubai is focusing on becoming one of the world’s largest cargo hubs by improving customs efRiciency. “The development of customs work, for us, is an ongoing process which is also in line with our vision to be the leading customs administration in the world support-
ing legitimate trade,” Musabih said in the release. “The longstanding commitment to innovation in customs procedures and services have helped signiRicantly speed up the processing of client declarations which reached 9.1 million declarations in 2016.” Meanwhile, A highlevel delegation from the Dubai Chamber of Commerce and Industry recently met with Uruguay’s Vice President H.E. Raul Sendic in Montevideo to formally invite him to attend the 2nd Global Business Forum on Latin America, which is set to be held in Dubai early next year. During the meeting, H.E. Majid Saif Al Ghurair, Chairman, Dubai Chamber, and H.E. Sendic discussed ways to expand that both sides enhance economic cooperation and work.
business premises and bank account attachment should be stop immediately. All Pakistan Anjume- Trajran President Khalid Pervaiz said that final and the last budget of the incumbent government was final installment of perks and the privileges for the big industrialists and businessmen while small traders and the poor have been ignored as usual.
RccI terms budget 2017-18 as balanced he Rawalpindi Chamber of Commerce (RCCI) termed the budget 2017-2018 as a balanced budget, however, below expectation for trader community and expressed hope that the agri based business would make all out efforts to take maximum mileage of the facility announced for them. Giving his reaction on the proposed budget presented by the Finance Minister Ishaq Dar before the National assembly on Friday, RCCI Acting President Khawaja Rashid Waien said that a number of good decisions have been part of the budget speech but a comprehensive reaction on this subject would be announced later from the forum of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) after thoroughly studying the proposed finance document. –CB Report
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Ghulam Abbas assumes charge as CC-IR in Islamabad Saturday June 3, 2017
Islamabad Suspension period of Appraising officer Nasir extended
ISLAMABAD: Syed Ghulam Abbas Kazmi, a BS-20 officer of Inland Revenue Service, has assumed the charge of the post of Chief Commissioner-IR (OPS), Regional Tax Office, Islamabad. The officer, in pursuance of Board’s Notification No. 1529-IR-I/2017 dated 23.05.2017, took the charge of the post of Chief Commissioner-IR (OPS), RTO, Islamabad with effect from May 23, 2017.
fBR withdraws income tax credit facility for register persons
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he suspension period of Nasir Iqbal, a Pakistan Customs Service officer of BS-16, has further been extended. The competent authority, in continuation of Board’s Notification No.0291-C-III/2017 dated 27.01.2017, extended suspension period of the officer, posted as Inspector (now Appraising Officer) at Model Customs Collectorate Appraisement (West), Karachi for a further period of three months with effect from April 27, 2017. Meanwhile, The suspension period of Qadir Khan, a Pakistan Customs Service officer of BS-16, has further been extended. The competent authority, in continuation of Board’s Notification No.0235-C-III/2017 dated 23.01.2017, extended suspension period of the officer, posted as Inspector at Model Customs Collectorate, Islamabad for a further period of three months with effect from April 23, 2017.
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three IR officers granted performance allowance hree BS-17 officers of Inland Revenue service, selected through the process of internal job posting (IJP), have been granted performance allowance. The officers including, Ray Muhammad Najam Nawaz Saqib, Abdullah Zulfiqar and Fatima Anjum, presently posted in Regional Tax Office, Sargodha, was granted performance allowance with effect from May 19, 2017. According to the notification, the grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. C.No. 6(96)S(BIC)/2013-14 dated 06-03-2015 and will be discontinued in case prescribed terms and conditions are not fulfilled within one month from the date of issuance of this notification. –CB Report
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ederal Board of Revenue (FBR) has withdrawn income tax credit facility to register persons under Sales Tax Act, 1990. Through Finance Bill 2017, Section 65A of Income Tax Ordinance, 2001 has been deleted under which the tax credit was allowed at three present to sales tax registered person. The section is read as: 65A. Tax credit to a person registered under the Sales Tax Act, 1990. (1) Every manufacturer, registered under the Sales Tax Act, 1990, shall be entitled to a tax credit of three per cent of tax payable for a tax year, if ninety per cent of his sales are to the person who is registered under the aforesaid Act during
the said tax year. (2) For claiming of the credit, the person shall provide complete details of the persons to whom the
sales were made. (3) No credit will be allowed to a person whose income is covered under Rinal tax or minimum tax.
(4) Carry forward of any amount where full credit may not be allowed against the tax liability for the tax year, shall not be allowed.
hyderabad customs receives Rs1689.917m M
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odel Customs Collectorate generated Rs1689.917million customs duties and taxes during the last week of May 2017 against the set target of Rs1930.98million. Model Customs Collectorate Hyderabad earned Customs Duty (CD), Sales Tax (ST), Federal Excise Duty (FED) and Income Tax (IT) during the above said period. Collectorate received Rs415.281 Customs Duty (CD) against the allocated target of Rs370.78million. Collectorate branch was tasked with the collection target of Rs1.518million against the earmarked Sales Tax of Rs1260.937million. It got Rs1.875million Federal Excise Duty (FED) against the set target of Rs2.2million. It received Rs11.824million Income Tax during the above said period against the target of Rs40million. The major tax sources were Hyderabad Dry Port, Sukkur and Larkana Divisions,
Hyderabad State Warehouse Huffaz Seamless Pipe Industries, Crescent Steel, Omni Polymer Industries, Rema Cooking Oil and Pakistan State Oil.(PSO). Anti-Smug-
gling Organization (ASO) also seized non-duty paid goods worth millions of rupees during April-May 2017. Under the supervision of Hyderabad Collector, Akhlaq Ahmad
Khattaq, additional collector Rehmatulah Vistro, deputy collector dry port customs, Mushtaq Shahni, and others, played an important role in revenue collection, ofRicials said.
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Govt for increasing sales tax rate to enhance revenue KARACHI: The federal government has proposed to increase incidence of sales tax on various imports and sectors which would help it overcome declining revenue. Steel sector is currently paying sales tax on the basis of consumption of electricity at the rate of Rs9.0 per unit of electricity. The existing rate of Rs 9.0 per unit of electricity is proposed to be enhanced to Rs10.5 and corresponding increase shall be made in ship breaking and other allied industry. And to promote the ease of doing business the issues pertaining to steel industry shall be resolved in consultation with the industry. Retail sales of five export oriented sectors are chargeable to sales tax at 5.0 percent.
chief collector given power to review suspended WeBoc user ID KARACHI
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he chief collector has been given power under Finance Bill 2017 to annul, modify or confirm the order passed by the collector suspending user ID of an importer or clearing agent. The Bill through amendment in Section 155F of Customs Act provides that a person aggrieved by an order of the Collector, cancelling or confirming the suspension of his unique user identifier, may, within thirty days of communication of such order, prefer an appeal to the Chief Collector who may pass an order annulling, modifying or confirming the order passed by the Collector. A Collector has been authorised to suspend the user ID of a registered user of the Customs Computerized System, for failing to comply with a con-
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dition of registration imposed by the Collector under sub-section (3) of section 155C of the Act; or failing to comply with, or acted in contravention of any conditions imposed by the Collector under subsection (3) of section 155D of the Act in relation to the use and security of the registered user’s unique identifier. The Collector can suspend User ID of a person convicted of an offence under the Customs Act, the Collector may cancel the registration of that person as a registered user by giving notice in writing to that person stating that the registration of that person is cancelled and setting out the reasons for that cancellation. However, Collector of Customs, in exceptional circumstances, after recording reasons in writing suspend the use of unique user identifier of any person forthwith on receipt of any complaint or information about violation of any provisions of the Customs Act.
Saturday June 3, 2017
Karachi
collected on Shc seeks comments from tax taxfertilizer import brought into ftR dept against levy of further St on zero rated supplies T KARACHI
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indh High Court (SHC) issued notices to the tax department and deputy attorney general and directed them to Rile their parawise comments on a constitutional petition Riled by M/s Muhammad Farooq Sattar Industries against the levy of further Sales Tax on zero rated supplies. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, heard the petition. Earlier, counsel for petitioner stated that it is engaged in a lawful business of manufacturing and supply of textile goods and all along it has richly contributed to the national exchequer by way of payment of direct and indirect taxes. Counsel submitted that ofRicials of the tax authorities issued a show cause notice to it for levy and collection of further Sales Tax on zero rated supplies which through Section 3 (IA) of the Sales Tax Act-1990, the levy of further Sales Tax on zero rated supplies is illegal and does not have any legal effect more importantly after the clariRication of the board. Citing to Secretary, Ministry of Law, Chairman Federal Board of
Revenue, Commissioner Inland Revenue Zone-I, Regional Tax OfRice-III, Deputy Commissioner Inland Revenue Unit-II, Zone-I, Regional Tax OfRice-III as respondents, he pleaded with the court to kindly set aside the impugned notice and restrain the tax department from taking any coercive measures. Meanwhile, Sindh High Court has granted bail to a disabled person in a mis-declaration case. Justice Aftab Ahmed Gorar granted bail
to the man whose Computerized National Identity Card (CNIC) was used for importing consignments and then cleared through mis-declaration. The applicant/accused Sajid Hussain was behind the bar since many months and sought bail through his counsel Ms Dil Khurram Shaheen advocate. The counsel submitted that accused is a disabled person, cannot move freely and his CNIC was used by some fraudsters.
he advance income tax collected on import of fertilizer has been proposed to bring under Final Tax Regime (FTR). The Finance Bill, 2017 proposed omit clause (b) Sub-Section 7 of Section 148 of Income Tax Ordinance, 2001. After the amendment the tax collected under section 148 on import of fertilizer from a person who is engaged in manufacture of fertilizer would now be treated as a final tax on income arising from import and sale of such fertilizer. Under the provisions of Sub-section (7) of section 148 of the Ordinance, the tax required to be collected under section 148 is treated as a final tax on the income of the importer arising from the imports. However, the provisions of Sub-section (7) are not applicable to the following : (a) raw material, plant, machinery, equipment and parts by an industrial undertaking for its own use; (b) fertilizer by manufacturer of fertilizer; (c) motor vehicles in CBU condition by manufacturer of motor vehicles; (d) large import houses, who fulfill certain specified conditions; and (e) a foreign produced film imported for the purposes of screening and viewing.
Appraisement east registers fIR against removal of pay-order
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he Customs Collectorate of Appraisement (East) has registered First Information Report against illegal removal of pay-order in the Securities Section of the Collectorate. The complainant, Muhammad Qadeer Khan, Appraising OfRicer at Research and Development Section, of Appraisement (East), Customs House, Karachi has Riled the FIR in this regard. According to the FIR, Faiz Sarwar, owner of the M/s FA Corporation, Shop No42 Ground Floor, Scheme No 5, KDA, Kehkashan, Clifton,
Karachi and Muhammad RaRiq, I/c WeBOC Collection Counter, OG-II, National Bank of Pakistan, Customs House Branch, Karachi were allegedly involved in misusing pay-order of Rs 2, 266, 383/-. It is alleged that particular payorder was deposited into the personal deposit accounts of unofRicial importers illegally with the active connivance of the National Bank of Pakistan staff deployed at the Pakistan Customs Computerised System (WeBOC). The FIR said that information was received that some unscrupulous elements are involved in illegal removal of pay-orders from Securities Section of the Collectorate
and depositing those into the personal deposit accounts of un-authorised importers. It further said that personal deposit or pact-deposit account is a facility by which government allows the users of WeBOC system (traders as well as customs agents) to deposit their funds with the government in advance. The FIR added that the funds deposited are utilized by the owner of PD accounts for payment of duty and taxes towards his customs liabilities arising in WeBOC system during the course of import/export by the owner. These PD Accounts are maintained on the basis of NTN of the WeBOC user.”
The FIR mentioned that customs ofRicial received the information that a pay-order number 2626509 dated 03/01/2017 of Rs2,266,383/- was issued by Meezan Bank Limited, Karachi on account of M/s NSB Bearing private limited, authorized importer, was illegally and allegedly deposited into PD Account of FA Corporation, whose owner is accused Faiz Sarwar. The FIR mentioned that Muhammad RaRiq was actively involved in this illegal depositing of pay-order. “At the time of deposit of funds into PD Accounts by the NBP, the WeBOC system asks the NTN number of PD Account Holder, in which funds are to be deposited.
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Eisberg Hungary turns out 130 tonnes of lettuce Saturday June 3, 2017
World
BUDAPEST: Eisberg Hungary produces 130 tons of salad products a week and exports almost half of it, chiefly to fast food chain McDonald’s in Austria and other European units, according to a press release sent to the Budapest Business Journal. Almost 10% of the produced salad products are delivered to the Hungarian units of McDonald’s. Eisberg Hungary says that due to the short delivery routes in Europe, Hungarian-produced salad can reach the tables of people around Europe fresh. Eisberg Hungary started operating in the country almost 25 years ago, arriving here chiefly to become the supplier of the local McDonald’s chain.
passenger at Dhaka airport caught with 1.3 kg gold in wig
pDo signs $35 million deals with omani firms MUSCAT
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ustoms ofRicials have seized 1.3 kilograms of gold concealed in a passenger’s wig at the Dhaka airport. The passenger, 45-year-old Md Aminul Haque, arrived at 10:30pm on aboard a Malindo Air Rlight from Malaysia, said customs Assistant Commissioner HM Ahsan Kabir. Haque had attempted to pass through the Green Channel when he was stopped by a customs team. Though he denied having gold on him, it was traced by the metal detector, said Kabir. “It was later found that the passenger was wearing a wig and hiding the gold inside it.” Thirteen gold bars, each weighing 100 grams, were found under the wig. The market value of the stash was Tk 6.5 million, Kabir said. Meanwhile, The Customs Intelli-
french authorities raid soccer stars’ homes in tax probe ARIS: The homes of Paris Saint-Germain players Angel Di Maria and Javier Pastore were searched on Tuesday morning by French anti-corruption officers, in the latest tax fraud probe to rock the football industry. According to reports by the French investigative news site Mediapart, the players are being investigated in connection with the probe into the use of tax havens to hide earnings from the marketing of image rights. It’s understood PSG’s offices have similarly been searched as part of the investigation. Details of the players’ contracts appear to reveal they had avoided taxes by using offshore arrangements to receive payments related to their so-called image rights. France’s National Financial Prosecutors’ office launched the probe into PSG and its players last December after the “Football Leaks” of 18 million. –CB Report
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gence and Investigation Directorate has written to Bangladesh Bank, asking it to regularly auction gold seized in drives and ease the process of importing the precious metal. CIID Director General Moinul Khan told press that copies of the letter were sent to the the central bank governor, internal resources secretary, National Board of Revenue chairman, and Bangladesh
Jewellers’ Association (Bajus) president. The CIID said the central bank has not held any auction of seized gold since 2008 despite rules to do so regularly, and it has lead the gold to pile up in the central bank. It said the jewellers claimed they have not been able to source gold from the local market for a long time, which is causing losses to their business.
cellnex telecom buys 2,239 Swiss cell towers for €430 million
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panish celltower company Cellnex is expanding into Switzerland with the purchase of Sunrise Communications’ subsidiary Swiss Towers, owner of 2,239 sites. The deal, valued at €430 million, will see Cellnex, controlled by Spanish infrastructure company Abertis, take on 54% of the shares of Swiss Towers, with Deutsche Telekom Capital Partners taking 18% and Swiss Life Asset
Managers the other 28%. Francisco Reynés, chairman of Cellnex Telecom, said the deal “will enable us to further consolidate Cellnex’s European platform to Switzerland, a country marked by stable and secure economic and political environment, while also offering Cellnex clear synergies through its geographical location next to France and Italy, where the Company is also present”. –CB Report
etroleum Development Oman (PDO) has signed three contracts worth $35 million with Omani Rirms for the supply and servicing of compressors. The deals are a further example of the company’s commitment to in-country value (ICV) to retain more of the oil and gas industry’s wealth in the Sultanate and develop local supply chains. PDO has agreed two contracts with Bin Salim Enterprises for the supply of instrument air compressor packages and the maintenance and repair of installed units. It also penned another service deal with PipeLine Supply Company for an existing compressor Rleet. “We are delighted to sign these contracts, which once again show our commitment to investing in Omani
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businesses and people. The deals will enable both the local manufacture of vital equipment for our operations and the development of Omani service engineers and repair facilities,” said Raoul Restucci, managing director of PDO. “We are working all the time to ensure Omani companies play a greater role in the oil and gas sector and beyond so that we develop competitive, capable, professional and efRicient local supply chains.” “It is also pleasing that more of our contractors are now realising their ICV commitments. That includes not only meeting but exceeding their set ICV targets, and reporting their performance through our online system so we can monitor accurately the progress we are making.” The supply and maintenance of compressors was the 15th opportunity to be realised by PDO since the ICV Strategy Blueprint for the Sultanate’s oil and gas operators was unveiled in 2013 to boost local business participation in the nation’s hydrocarbon exploration and production sector.
taiwan’s economy seeing sluggish growth aiwan’s economy turned sluggish in April, with the overall monitoring index Rlashing “yellow-blue” for the Rirst time after nine consecutive months of stable growth, according to business indicators published on Friday by the National Development Council (NDC). The NDC uses a Rive-color system to gauge the country’s economic performance, with blue indicating economic recession, yellowblue representing economic sluggishness, green denoting stable growth, yellow-red referring to a warming economy and red pointing to economic overheating. The
economic slowdown in April was primarily due to the strong New Taiwan dollar, which has had a short-term impact on the overall economy, the NDC said. In terms of the monitoring indicator score, the total score for April was 21, on a scale of 9-45, with a higher score representing a more buoyant economy. Meanwhile, the economy Rlashed a different color based on the council’s composite monitoring indicator, which measures growth or decline in nine components of the economy. Of the nine components, the score for two customscleared exports. –CB Report
Singapore sees growth exceeding 2% in 2017
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SINGAPORE
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ingapore’s government gave an upbeat outlook on the economy, saying it will probably expand more than 2 percent this year as exports continue to strengthen. The Ministry of Trade and Industry maintained its GDP growth fore-
cast for 2017 at 1 percent to 3 percent, but said the economy will likely grow faster than the 2 percent expansion in 2016, barring any downside risks In a revised estimate of Rirst-quarter data, the ministry said gross domestic product declined an annualized 1.3 percent from the previous three months, an improvement on its projection last month of a 1.9 percent
contraction The median estimate in a Bloomberg survey of 10 economists was for a 0.9 percent contraction Compared with a year earlier, GDP rose 2.7 percent in the Rirst quarter, in line with the median estimate of 17 economists Singapore’s economy is rebounding on the back of a recovery in export demand, led by China. That’s helping to underpin manufacturing, primarily of electronics, though do-
mestic-focused industries, such as retail and construction, remain under pressure. The main risks to the outlook Rlagged by the government are rising trade protectionism and a downturn in China amid measures to curb debt. International Enterprise Singapore on Thursday raised its estimate for export growth for this year to 4 percent to 6 percent, up from zero to 2 percent previously.
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Vodafone Qatar’s net profit at QR134 million
World Customs
DOHA: Vodafone Qatar yesterday reported a net profit of QR134m for the financial year ended March 31, 2017, registering an improvement of QR196m from losses previous year. The telecom operator reported that EBITDA (earnings before interest, tax, depreciation and amortisation, which is a measure of a company’s operating performance) increased significantly by 34 percent year-on-year to QR537m due to gains in post-paid market share, a better mix of higher margin revenues and the success of new innovative products introduced to the market. This was coupled with strong cost control following on from the restructuring of the business and 10 percent reduction in overall headcount in Q1.
Jordan to get uS$600m in revenue from Iraqi oil pipeline annually hairman of the Iraqi Business Council in Jordan Majid al-Sa’idi disclosed that Jordan will get 600 million dollars as annual revenues from the Iraqi oil pipeline to Aqaba terminal, as quoted by al-Rai daily. He added that the cost of the project on the Jordanian side will reach to 6-7 billion dollars, where the investor will bear the costs, but the Jordanian side will get about 500-600 million dollars annually as fees for the passage of the pipeline, in addition to the profits of other operating companies that will support the project. It is expected that the project will be completed within two years, that will accommodate gas pumping stations and storage system in Aqaba terminal for 7 million oil barrels, as well as other refineries and the development of Zarqa’ refinery to receive the incoming oil. Meanwhile, Gym owners and users in Jordan are now obliged to pay an additional tax of 16 per cent, set by the government recently. –CB Report
malaysian customs seizes narcotics worth Rm18.3 million
homing pigeon with a tiny backpack full of drugs, presumably on his way to a ripper party, was apprehended by Kuwaiti customs agents when he crossed the border from Iraq earlier this week. Customs agents in Kuwait have caught a homing pigeon crossing the border form Iraq with a tiny backpack filled with pills. According to Al Arabiya, the little guy was caught at the Kuwaiti border with 178 pills strapped to his back. Using homing pigeons to traffic drugs is nothing new, but this little backpack, in particular, is an adorable method. A dull grey colour was even chosen, obviously to blend in with the pigeon’s plumage. –CB Report
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kuwait calls for facilitating gcc customs procedures uwait Minister of Commerce and Industry Khaled Al-Roudhan called for facilitating customs procedures and movement of goods among the six Gulf Cooperation Council (GCC) countries. AlRoudhan, also Acting Minister of State for Youth, was speaking to KUNA on sidelines of meetings with GCC ministers of commerce and chiefs of Chambers of Commerce and Industry in the Arab Gulf countries. He said the two-day meeting aimed at boosting private sector’s role in sustainable development. Al-Roudhan, who arrived in Manama last night, said they have discussed how to facilitate movement of trucks via crossings, as well as the piling of goods at sea ports. Bahrain’s Minister of Industry, Trade and Tourism Zayed Al-Zayani said the meeting was within framework of cooperation between the private and public sectors with with objective of pushing economic growth. Addressing the meeting, Al-Zayani said the private sector was playing an important role in economic development. Abdulrahman Al-Utaishan, first vicepresident of the GCC Union of Chambers of Commerce and Industry, called for developing the economic partnership between the public and private sectors. –CB Report
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customs catch homing pigeon with backpack
Saturday June 3, 2017
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he Customs Department has confiscated 198 kilogram of drugs worth an estimated RM18.3 million in Kedah, in what may be the single biggest narcotics haul so far of 2017. According to the Star Online news portal, Customs deputy directorgeneral Datuk ZulkiRli Yahya said ofRicers made the seizure during a vehicle inspection at the Immigration, Customs, Quarantine and Security Complex of the Malaysian-Thai bor-
der. “The driver of the car was ordered to open the boot for inspection. The boot of the car was covered with plywood and what looked like a speaker and audio system. “Through gaps in the plywood, the ofRicers spotted suspicious objects,” he was quoted as saying in the report. Customs ofRicers then discovered yellow slabs, black plastic packets and green bags that were later determined to be 154 kilogram of heroin, 38 kilogram of methamphetamine and 6 kilogram of ketamine, he added. ZulkiRli said initial reports indicated that the driver travelled often to a neighbouring country. “Another local man, aged 36, was arrested in Alor Setar later. He is be-
lieved to be from the same syndicate. Both men have been remanded until June 5 for further investigations,” he said. The report said the case will be investigated under Section 39B of the Dangerous Drugs Act 1952 that carries a mandatory death sentence upon conviction. Meanwhile, A Malaysian suspected of foreign terror activity was among 17 arrested during an Interpol operation in South-East Asia. He has since been deported from Turkey to Kuala Lumpur. Dubbed Operation Sunbird III, police, immigration and maritime authorities from all 10 Asean countries screened passports at 35 land, air and sea border points against Interpol’s global databases.
trade volume between Afghanistan, tajikistan doubles KABUL
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ajikistan’s Minister of Transport Khudoyorzoda Khudoyor, on signed trade and economic agreements with Afghanistan during a two-day visit to the country. Khudoyor had been in Kabul this week for an Economic and Trade Cooperation meeting in Kabul. The Tajik minister said that in the past three months Afghanistan and Tajik-
istan’s trade and transit relations have increased substantially, resulting in Afghanistan becoming one of Tajikistan’s key trade partners. Khudoyor headed a ten-member Tajik delegation to Afghanistan and was optimistic about a further increase in trade between the two countries. He said that in the Rirst quarter of the current year Tajikistan exported $74 million USD in goods to Afghanistan, of which $11million USD was in cement. “Without a doubt the expansion
of trade between Afghanistan and Tajikistan has paved the way for us to increase our income and this will increase transit of goods from both countries,” said Khudoyor. After recent closures of the Afghanistan crossing with Pakistan, Afghan traders started looking for alternative trade partners, and have since increased trade volumes from Turkey, Iran and India. Other Central Asian countries are also looking to increase their exports to Afghanistan. Meanwhile the
Afghan Minister of Economy Abdul Sattar Murad said that the expansion of economic cooperation and trade between Afghanistan and Tajikistan is to the benefit of both countries. Murad said that at this week’s 6th Economic and Trade Cooperation meeting between Afghanistan and Tajikistan both countries agreed on expanding cooperation in the transport infrastructure sector and increase exports and improve economic growth in both countries.
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Court grants bail to PIA air-hostess involved gold smuggling Saturday June 3, 2017
Lahore
LAHORE: The Special Court of Customs Taxation and Anti-Smuggling has approved the bail of an airhostess of Pakistan International Airlines (PIA) involved in gold smuggling. She was booked by the authorities while making an attempt to smuggle gold to New York. According to details, the air-hostess, Nuzhat Bukhari, was arrested by the Customs authorities from Allama Iqbal International airport Lahore. The customs prosecution team presented her before the court for remand where she confessed to her crime. After that the court sent her to jail for judicial trial. She was in jail since July 2016.
customs court extends judicial remand of alleged smuggler LAHORE
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pecial federal court of customs taxation and antismuggling has approved the extension of judicial remand of an accused arrested by the customs authorities from Lahore on the charge of smuggling powder milk by showing it as plastic raw material. Accused Zahid Rasheed was booked by the customs intelligence. Customs intelligence, on a tip-off, intercepted a truck in the suburbs of Lahore city and found it loaded with international branded powder milk. Customs intelligence raided a warehouse and found a huge quantity of milk. Customs team found 9,349 bags of powder milk. Weight
Accused tax evader of Rs4b approaches Lhc for post arrest bail n accused involved in a tax evasion of Rs4billion has moved the Lahore High Court for post arrest bail as the customs court has rejected his bail plea last week. The Lahore High Court has transferred the application of bail plea of Orient’s Managing Director to a notified judge of customs cases Justice Abdul Sami Khan. Now Justice Abdul Sami Khan will further hear the bail plea of the accused. Managing Director of a Pakistani leading electronic manufacturing company was apprehended by the Inland Revenue Department Lahore. Sources also said the total amount of tax evasion is Rs4billion which is one of the largest tax evasion cases of Lahore. Investigations are underway to dig out more persons behind the scam and recover evaded taxes. Mian Talat Mehmood has allegedly caused a huge loss to the national kitty. –CB Report
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of the recovered powder is 232,000 kilograms. The value of the milk is Rs70millions. Smuggled milk is made of America, Turkey, Holland, Korea and India. All of the milk was smuggled from these countries by different routes, especially from Afghanistan. After physical remand, he was sent to jail and now he is on a judicial trial. Customs authorities registered a case against him under Pakistan Customs Act-1969. Meanwhile, Special court of customs taxation and anti-smuggling has approved a 14-days judicial remand of an accused in a case of cigarette smuggling. Customs investigation team presented an accused Rameez Iftikhar before the court of customs taxation and anti-smuggling judge. Investigation team asked the court that they have completed the investigation from the accused in a Riveday physical remand.
collector Zulfiqar distributes workload among two Dcs
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ollector of Customs Collectorate Preventive Chaudhary ZulRiqar Ali has distributed
workload among two deputy collectors who would separately look into the matters of Anti-Smuggling Organization (ASO) and headquarters. As per details the Collector of Customs Ch ZulRiqar Ali distributing workloads of headquarters and ASO has given charge of Customs ASO, Headquarters, GPO and law to Pal-
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washa Syed while charge of Anti Smuggling Organization and Investigation and Prosecution, auction and state warehouse were assigned to Moazzam Syed. Earlier Palwash Syed has served Allama Iqbal International Airport while Moazam Syed was performing his duties at Customs Appraisement Lahore besides successfully discharging his duties in Karachi. The distribution of work between the two ofRicers has been ordered with immediate effect. It is also necessary to mention here that Customs department already facing acute shortage of staff. These measures also put a positive impact on performance of customs department. Meanwhile, Collectorate of Customs Preventive Anti-Smuggling Organization (ASO) impounded three illegally imported cars during a crackdown here. As per details Customs Preventive ASO on instructions of Collector Ch ZulRiqar Ali has intensiRied crackdowns against the owners of nonduty paid vehicles in the city.
Dc Naveed recommends disciplinary Import of Indian mangoes suspended action against Inspector Shahid Abbas mport of mangoes and lemons porters of Pakistan had started
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eputy Collector of Allama Iqbal International Airport HaRiz Naveedur Rehman recommended stern disciplinary action against customs Inspector Shahid Abbas. Sources told Customs Today that during the scrutiny of daily attendance report for the month of April, it was revealed that Inspector Shahid Abbas remained absent from duties for whole month without approval and intimation of competent authority. He even did not reply to the notices asking him to expain the reason of his absence
from duty. He failed to attend the ofRice till the Riling of this report. Sources said that Customs department already suspended the performance allowance of the above said inspector and directed to take stern action against him as per E&D Rules 5 regarding his continuous absence from his ofRice. It is necessary to mention here that after taking the charge of Deputy Collector Allama Iqbal International Airport HaRiz Naveedur Rehman is taking measures to ensure discipline among employees. –CB Report
from India has been suspended due to bad quality of the imported consignments. According to Customs Today, Pakistan has stopped import of Indian lemons through Land Freight Unit Wagha. All the consignments imported from India were found fungus affected. Local traders of vegetable markets in Lahore didn’t purchase the Indian lemons. Due to fungal lemons, importers have to face a big financial loss as well. On the other hand, few im-
the import of Indian mangoes through Land Freight Unit Wagha in view of the rising demand of mangoes in the local market of Pakistan, especially Punjab because of late arrival of local mangoes. Now local crop of mangoes has started reaching markets, so import of Indian mangoes has stopped. About five to eight trucks of lemons are crossing the border daily therefore Pakistan customs will also earn more duty and taxes. –CB Report
fto puts off case filed by m/s ejaz Steel furnace
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LAHORE
SAJID NAWAZ
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ederal Tax Ombudsman (FTO) has adjourned the hearing of a case Riled by M/s Ejaz Steel Furnace and Re-rolling Mills against the Regional Tax OfRice (RTO) Gujranwala until the next hearing. FTO Consultant (I&M) Tariq
Yousaf heard the case NO: 464/FTOLHR0000893/16 Riled by Muhammad Imteaz Malik, M/s Ejaz Steel Furnace and Re-rolling Mills, in which the counsel for appellant contended that the RTO had failed to release the refunds since three years. He said the RTO has been collecting excessive tax from M/s Ejaz Steel Furnace and Rerolling Mills for the last three years. He approached the ofRicer concerned
many a time for release of refunds but the RTO Gujranwala ofRicials did not pay the claims. At last the appellant decided to approach the Federal Tax Ombudsman (FTO) seeking intervention in the case. The counsel appealed the FTO to direct the RTO Gujranwala to clear refunds’ claims as early as possible. The counsel further said delay in release of refunds’ claims put a burden on the taxpayer.
The RTO should make audit of the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO Gujranwala argued that the appellant has not submitted all the records to the ofRice on which basis he is claiming refunds. If appellant provides an accurate record, the RTO will release refunds, if any, after a proper assessment, he added.
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Container of weapons found in Lagos port WASHINGTON: Another container filled with arms has been discovered at the Tin Can Island Port in Lagos, the Nigeria Customs told PREMIUM TIMES Tuesday. A source at the port told PREMIUM TIMES the container was found at the Ports and Cargo Terminal of the Tin Can Island Ports. “As I speak to you, they’ve ordered everyone to go out of the terminal and they have locked up everywhere,” the source said. The spokesperson of the Nigeria Customs, Tin Can Island Command, Uche Ejesieme, confirmed the incident and said details would be made public later. “We are still counting,” Mr. Ejesieme told PREMIUM TIMES over the phone.
Adani ports Q4 net profit up 27% to Rs 1,179 crore ndia’s largest port developer and the logistics arm of Adani Group APSEZ, on Wednesday, posted a jump of 27 per cent in consolidated net profit to Rs 1,179 crore for the fourth quarter ended March, on back of higher income. Adani Ports and Special Economic Zone Limited (APSEZ) had clocked a net profit of Rs 928 crore in the corresponding quarter of FY16. The company’s “profit after tax grew by 27 per cent from Rs 928 crore in the fourth quarter of FY16 to Rs 1,179 crore in the fourth quarter of FY17,” the company said in a statement. Its consolidated revenue from operations registered a growth of 18 per cent to Rs 2,231 crore in the quarter under review as against Rs 1,899 crore in 2015-16. “Consolidated EBITDA increased by 32 per cent to Rs 1,638 crore in the fourth quarter of FY17 from Rs 1,238 crore in the
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fourth quarter of FY16,” the company said. APSEZ handled a cargo of 43 million tonne (MT), a growth of 14 per cent year-on-year while container volumes increased by 24 per cent. APSEZ Chief Executive Officer and whole-time director Karan Adani said, “This is one of our best all-round performances. Our strategy to diversify our cargo mix and focus on highvalue cargo continues to yield positive results. FY17 volume growth was led by containers and high growth in other ports namely Hazira, Dhamra and Kattupalli. Our EBITDA margins have been improving yearon-year and this is likely to continue given our focus on operational efficiencies, technology and cost control.” For the entire year, APSEZ’s profit after tax grew by 35 per cent to Rs 3,920 crore in FY17 from Rs 2,914 crore in FY16. –CB Repor
Ports & Shipping
Senate body receives briefing on issues of ports & Shipping ISLAMABAD
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meeting of Senate Standing Committee on Ports and Shipping was held here at Parliament House on Tuesday under the chairmanship of Muhammad Ali Khan Saif. Minister for Ports and Shipping Mir Hasil Khan Bizenjo, Secretary Ministry of Ports and Shipping, Chairman Karachi Port Authority and other ofRicials briefed the committee about the issues of transportation on Ports relevant to the ministry of Railway. Members of the committee including Senator Kalsoom Parveen, Senator Mir Kabir Ahmed Muhammad Shahi, Senator Taj Haider and Senator Muhammad Daud Khan Achakzai attended the meeting. The ofRicials of ministry of Ports and Shipping also briefed the committee about the KPT and Port Qasim Authority in detail regarding all cases, enquiry cases and land and plot cases pending with the National
Accountability Bureau (NAB), Karachi Port Trust (KPT) and Port Qasim Authority. Senator Taj Haider proposed that a private ferry service should be started. Secretary Ministry of Ports and Shipping said that Pakistan National Shipping Corporation (PNSC) had already advertised regarding start of a Ferry serv-
ice in national newspapers. Minister for Ports and Shipping Mir Hasil Bizenjo proposed the committee to held its next meeting in Karachi to discuss all the pending issues on spot. The minister said that he has issued special directives to Chairman Karachi Port Trust for renovation of Railway track.
Saturday June 3, 2017
pNg ports recognized as 2016 best Soe NG Ports Corporation Limited (PNG Ports) has been recognised as 2016’s Best State Owned Enterprise Employer in Papua New Guinea. The recognition was from the PNG Human Resource Institute during its 2017 annual conference held in Port Moresby last week (18 May). The award was for being a role model organisation and emulating (outdoing) best HR practice in the corporate world. As an employer striving for excellence in service delivery and wellbeing of its employees, the policies it has in place and which earned it this award include: Employee Relations Policy and Procedures, Employee Benefits and Remuneration Policy and Procedures which guide the conduct and addresses employment conditions of its employees. Managing Director, Stanley Alphonse acknowledged PNGHRI for recognizing PNG Ports’ achievements and said that most of these benefits are provided to the 600 plus employees spread throughout the company’s network of 15 ports in PNG including its head office in Port Moresby. –CB Repor
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poA to eliminate methyl bromide emissions A
WASHINGTON
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s part of Ports of Auckland’s ambition to be the most sustainable port in New Zealand, the company will require the total recapture of methyl bromide gas used for container fumigation by September 1, 2017, and for all cargoes by the end of the year. Ports of Auckland CEO Tony Gibson said “Methyl bromide is a very effective pesticide and a key part of New Zealand’s biosecurity defence, but it is toxic to humans and depletes the ozone layer. By recapturing the gas after use we can improve safety, protect the environment and still keep unwanted pests out of New Zealand.” At Ports of Auckland both containers and loose or ‘breakbulk’ cargo are fumigated by pumping the gas into a container or a tarpaulin covering the freight. After fu-
migation, the gas is vented to the atmosphere and it is this last stage that will be stopped. Ports of Auckland has a history of innovation to reduce methyl bromide use. It is the Rirst and only port in New Zealand to use heat treatment, instead of fumigation, for some cargoes. Heat treatment is not suitable for all cargoes (for example fresh fruit) so fumigation is still necessary. “We are not a major user of methyl bromide, but when it comes to caring for our people and the environment we think it is important to address every issue even if it seems small. Every step we take to reduce our emissions takes us closer to our ambitious goal of having zero emissions by 2040,” concluded Tony Gibson. Methyl bromide is an effective and versatile fumigant used to kill unwanted pests. It is used in New Zealand for the eradication of quar-
antine pests from import and export cargo. While it is a useful tool at the border, it toxic to humans and is an ozone depleting substance. New Zealand’s current annual consumption of methyl bromide is about 525 tonnes. 561 containers were fumigated at Ports of Auckland in 2015 and 282 ‘tent’ fumigations took place. 5.3 tonnes of methyl bromide was used on the port, about 1% of the New Zealand total. Fascinating fact: It is estimated that marine organisms produce 1-2 million tonnes of methyl bromide annually. Meanwhile, Georgia’s seaports in Savannah and Brunswick are on track to show record growth for the 2017 Riscal year that wraps up at the end of June, the chief executive of the Georgia Ports Authority said Monday. Total cargo moving through the two ports is expected to top the nearly 32 million tons (29 million metric tons) of imports and exports Georgia saw
in Riscal 2015, the ports’ busiest year ever, said Griff Lynch, the authority’s executive director. He also predicted the Port of Savannah should surpass the record 3.6 million container units it saw two years ago. The big numbers Georgia ports posted in 2015 resulted from a temporary surge in business when labor woes on the West Coast caused shippers to divert much of their cargo to ports on the East Coast. Lynch said business during the Rirst 10 months of the current Riscal year, which ends June 30, has raced ahead without the extra help. “What we have going on here is just true, organic growth,” Lynch said during the port authority’s monthly board meeting Monday. “We’re heading toward a record for the year if May and June come in with solid numbers.” He credited larger ships carrying heavier loads arriving via the Panama Canal, which completed a major expansion last summer.
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ASO seizes smuggled zeera, cardamom near Canal Road FAISALABAD: The Customs Anti Smuggling Organization confiscated 2240 kilograms of foreign origin zeera and large cardamom Indian brand. Sources told Customs Today that following a tip off customs staff of ASO squad foiled an attempt of smuggling of 2240 kilograms zeera valued around Rs32,82,800 in the international market. Besides confiscated Hino truck Rs 20,00,000 involving customs duty and taxes Rs1,88,040 and arrested the driver of vehicle.
Saturday, June 3, 2017
CUSTOMS BULLETIN
Amended section 7 under customs laws to curb smuggling activities: Dr Arslan ISLAMABAD tARIQ DeRYA
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ew amendments in federal budget for Financial Year (FY) 2017-18 are welcoming on the subject of customs laws. Amended section 07 under customs laws would help remove hurdles in curbing smuggling activities. The said changes or amendments in customs laws FY17-18 are welcoming additions. Some of fruitful changes include amended customs laws FY2017-18 were suggested by Dr. Arslan, Collector Model Customs Collectorate (MCC) Islamabad. It was told by Collector Model Customs Collectorate Dr. Arslan while talking to Customs Today during an exclusive interview that to regulate imports and exports pertaining to the China-Pakistan Economic Corridor (CPEC), the federal government has constituted a Directorate General of China Pakistan Economic Corridor under the umbrella of Pakistan Customs. He added that the directorate will facilitate the business activities between Pakistan and China in near future. According to amendment in section 07 of Customs laws amend
as all ofRicers of Inland Revenue, Police, Civil Armed Forces, National Highway and Motorway Police and all ofRicers engaged in the collection of land revenue are required to assist ofRicers of customs in the discharge of their functions, he stressed. He further said while praising changes of section 07 of
customs law. He said Customs Department in the past was facing hurdles to perform its required duties under the jurisdictions of Motorway and Highway Department but due to amendments in the said section, now Anti-Smuggling activity will gain more revenues. Regarding the amendments in section 19 which is
based on exemptions on duty taxes, after said changes in the Customs laws, the procedure of exemptions will become simpliRied. He further said that changes in section 8A empower the Federal Board of Revenue (FBR) to notify the wearing of uniform for ofRicers and staff of the Customs Service of Pakistan. The col-
lector said that substitute amendment in Section 33 sub section (4) of Customs Act is also well. He said according to said amendment “no refund shall be allowed if the sanctioning authority is satisRied that the incidence of customs duty and other levies has been passed on to the buyer or consumer”, he added.
NAB to file two corruption references, seven inquiries ISLAMABAD
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he National Accountability Bureau (NAB), in its executive board meeting held under the chairmanship of Qamar Zaman Chaudhry, has ordered file two corruption references and initiate seven inquiries. First corruption reference was decided to be Riled against Riaz
Qadeer Butt, CEO M/s Haq Bahu Sugar Mills (Pvt) Ltd and others. The accused persons were alleged for wilfully failure to supply the requisite quantity of sugar to Trading Corporation of Pakistan (TCP) and Utility Stores Corporation of Pakistan and misappropriated the advance amount, which caused huge loss of millions of rupees to the national exchequer. Second corruption reference was decided to be Riled against Shehnaz Ikram, Director M/S SB Hosiery Factory PVT Ltd Faisalabad and others. In this case, the accused persons were alleged for
an engineered fraud by the Directors of M/S SB Hosiery Factory Pvt Ltd Faisalabad in connivance with the bank ofRicials through negotiating of fake/forged documents, which caused a loss of Rs195.217 million to the national exchequer. The EBM authorised two investigations. First investigation was authorised against ofRicers/ofRicials of Pakistan State Oil (PSO) and others. In this case, the accused persons were alleged for corrupt practices in procurement, shipping and distribution of below quality of petroleum products, which caused a huge loss of mil-
lions of rupees to the national exchequer. Second investigation was authorised against Muhammad Tahir Ismail, Proprietor of Tahir Traders, Rahim Yar Khan. In this case, the accused persons were alleged for cheating/defrauding public by establishing an illegal brokerage house, which caused a loss of Rs315.264 million. The executive board meeting also decided to authorise seven inquiries. First inquiry was authorised against Manzoor Qadir, DG Sindh Building Control Authority (SBCA), Karachi and others. In this case, the accused persons were alleged for 1200 illegal
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appointments made in SBCA. Thus caused a loss of Rs1.487 billion to the national exchequer. Second inquiry was authorized against Manzoor Qadir, DG Sindh Building Control Authority (SBCA), Karachi and others in illegal approval of commercial building site plan on non commercial roads. Thus caused a loss of Rs343.5 million to the national exchequer. Third inquiry was authorised against ofRicers/ofRicials of Korakoram International University (KIU), Gilgit Baltistan. In this case, the accused persons were alleged for misuse of authority and illegal appointments.