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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
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Karachi, Tue June 6, 2017
MULTAN
IMRAN ALI
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ustoms Collectorate has collected customs duty of Rs34.198 million from M/s Hascol Petroleum Limited for the clearance of their imported petroleum products from Multan Dry Port. Sources told Customs Today that M/s Hascol Petroleum is the 4th largest oil
marketing company in the country in terms of market share and the second largest importer of fuels in the country after Pakistan State Oil (PSO). M/s Hascol Petroleum has started clearance of their imported petroleum products from Multan Customs after establishing their bonded warehouse in the Mehmood Kot for better supply in the South Punjab Region. It is important to mention here that
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Multan Dry Port is already handling bulk quantity of import consignments of the High Speed Diesel (HSD) of PARCO. Swift import clearances of Multan Customs attracted M/s Hascol Petroleum Limited for the clearances of their petroleum products. Timely import clearance facility of the Multan Customs is attracting various importers for the clearance of their import consignments from Multan Dry Port.
Customs Preventive gears up action against smuggling,seizes 35 NDP vehicles
FBR detects huge money laundering case, recovers Rs6.2 billion
Senate continues discussion on Finance Bill, 2017
PCA detects huge tax evasion by M/s M N Enterprises
DG Valuation revises customs values of exhaust fans vide VR No 1174/2017
CustomsPreventivehasgearedagainstthose involvedinsmugglingofNDPvehicles | SEE PAGE 02 |
The FBR has detected a huge money launderingcaseandrecoveredrecordRs6.2b | SEE PAGE 03 |
The upper house of the Parliament continued discussion on Finance Bill-2017 | SEE PAGE 04 |
PCAhassummonedthemanagementofM/s M N Enterprises Business Centre Hall Road | SEE PAGE 14 |
DGValuationhasrevisedthevaluesofexhaust fans videValuation Ruling No 1174/2017 | SEE PAGE 16 |
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Customs Intelligence seizes smuggled mobile phones Tuesday, June 6, 2017
National
SUKKUR: Customs Intelligence and Investigation has seized smuggled mobile phones of worth Rs 20 million. According to Customs officials, a team of Customs Intelligence raided the Millat Express bounded for Karachi and seized smuggled mobile sets from the break van of the train which were being transported from Faisalabad to Karachi. As many as 800 pieces of mobile phones of different brands were seized. The smuggled goods have been seized under Section 168 of the Customs Act, 1969.
Customs Preventive gears up action against NDP vehicles: Junejo
FTO adjourns hearing of case filed by M/s Falcon Trading Corporation LAHORE
KARACHI
MUBEEN HUSSAIN
SAJID NAWAZ
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he Federal Tax Ombudsman (FTO) has adjourned the hearing of a case filed by M/s Falcon Trading Corporation Lahore against Corporate Regional Tax Office (CRTO) until the next hearing. According to the details, FTO Consultant Tariq Yousaf heard the case number 259/LHR/ST (59)/783/2015 filed by M/s Falcon Trading Corporation in which the counsel for the appellant argued that the Regional Tax Office (RTO) had failed to release the sales tax refunds of the last two years claimed by the company. He said that the RTO collected excessive tax from M/s Falcon Trading Corporation during the last two years. They approached the commissioner concerned many times for issuance of refunds but the RTO officials did not pay the refunds after the passage of reasonable time. Finally, the company decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the CRTO to clear the refund claims. The counsel further said that the RTO should refund the excess collection in wake of taxes by the end of financial year but the situation is quite otherwise.
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www.customsbulletin.com ollectorate of Customs Preventive has geared up action against those involved in smuggling of non-duty paid luxury vehicles. According to sources, on directives of Collector of Customs Collectorate Preventive Dr Saifuddin Junejo, the customs teams geared up action against people involved in heinous crime of smuggling. Sources informed Customs Today that a team is formed under supervision of Deputy Collector Customs Preventive Headquarters Ali Raza, giving him the task to curb smuggling and seizing non-duty paid vehicles. On directives of Collector of Customs Preventive Dr Saifuddin Junejo, Customs team recovered 35 non-duty paid luxury vehicles worth billions of rupees in different raids during 50 days. The apprehended vehicles were smuggled through Afghanistan route whereas several vehicles had two number plates. The 35 non-duty paid luxury vehicles include Land Cruiser, Toyota Surf and sports cars along with other expensive vehicles, sources further informed. Sources also revealed that owners of several vehicles made calls to higher authorities for restricting customs ofSicers from taking any action whereas bribe was also offered
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for releasing busted non-duty paid vehicles. On directives of higher authorities, action is taken against the culprits and FIRs are lodged against the apprehended non duty paid ve-
hicles as the customs ofSicers are committed to root out the menace of smuggling, sources added. Collector Preventive Dr. Junejo directed customs teams to take strict
action against people behind the smuggling of non duty paid luxury vehicles, sources informed adding that the collector asked the ofSicers to keep strict vigilance.
Additional Collector Saeed orders release of vehicle, diesel C
FAISALABAD
NAEEM SHEIKH
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ustoms Adjudication Additional Collector Muhammad Saeed Asad ordered the release of conSiscated motor oil diesel and vehicle and rejected the charge sheet of Customs Intelligence and Investigations against the respondent. As per details, the Customs Intelligence team intercepted a trailer bearing registration no: TLB-635
near Khurrianwala Chowk, Sheikhupura Road Faisalabad. The trailer was found loaded with drum of motor oil 74880 liters (360drums). Customs team asked the driver Muhammad Hassan son of Yar Muhammad to produce documents regarding transportation of motor oil. The driver replied that he was transporting the diesel from Jeway Pakistan Goods Transport Quetta to Faisalabad. Over Sinding it non satisfactory, the team impounded the motor oil along with
trailer and forwarded the case to the adjudication. Additional Collector Muhammad Saeed Asad heard the case where the seizing agency could not prove the charges established in the show cause notice. Therefore, the collector Adjudication issued Order-in-Original (OnO) No. 18/2017 and ordered to release the motor oil and vehicle unconditionally to its lawful owner. Meanwhile, Customs Adjudication Additional Collector Muhammad Saeed Asad has issued Order-in-Original (ONO) directing
the Anti-Smuggling Organization Mianwali for unconditional release of impounded vehicle Toyota Land Cruiser V-8. The vehicle with registration No: AF-017 (Islamabad) was impounded by Mianwali ASO under Section 168(1) of the Customs Act1969 and the Import and Export Control Act-1950 punishable under Section 156(1)89(i) of the Customs Act. Later, accused Ali Aqdus son of Muhammad Farooq, a resident of Rawalpindi, provided the documents which were veriSied through
electronic data for amnesty scheme. It was found that vehicle was cleared under the Vehicles Amnesty Scheme 2013 from Customs Collectorate Quetta. It was further informed that as per office record, the vehicle’s chassis number was registered with the Motor Registration Authority Quetta. On the other hand, Ali Aqdus appeared in the adjudication court from respondent side while Customs Inspector Mumtaz Bajwa appeared to present the arguments.
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FBR imposes advance tax on sales of batteries KARACHI: Realizing the huge undocumented sales of batteries in the country, the Federal Board of Revenue (FBR) has imposed advance tax on sales of batteries. Through Finance Bill 2017, amendment has been made to Income Tax Ordinance, 2001 regarding advance tax on sales to distributors, dealers & wholesalers and retailers under Section 236G and 236H of the Ordinance. The Bill proposed to include ‘batteries’ to the list of specified items.At present every manufacturer, distributor, dealer, wholesaler or commercial importer of the following items is required to collect advance tax on sale of such items to distributors, dealers, retailers and whole sellers at varying rates ranging from 0.1 percent to 1.4 percent.
Gwadar Customs finds huge quantity of drug worth Rs11.8m
Tuesday June 6, 2017
National
FBR detects huge money laundering case, recovers Rs6.2b
GAWADAR
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he Customs authorities have found a huge quantity of drugs worth Rs11.8 million concealed under the mud. Gwadar Collector Feroz Alam Junejo got information that a huge quantity of narcotics will be smuggled from Afghanistan through Quetta to a foreign destination via fishing boats from the Makran Coastal Belt. The Assistant Collector (Preventive) was directed to make all out efforts to ensure that the attempt of smuggling is thwarted. A mobile squad cordoned off the katcha area near Goggi Bandar 50Km away from zero point and carried out search of the area.
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FBR suggests imprisonment for illicit traders KARACHI
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he Federal Board of Revenue (FBR), in Finance Bill 2017, has suggested to give five-year imprisonment to the persons involved in illicit manufacture and trade of cigarettes. Finance Bill 2017 proposed certain penalties are prescribed which includes imprisonment up to five years or with additional fine which may extend to an amount equal to the loss of tax involved, or with both. The Table under Section 33 of the Sales Tax Act 1990 provides general and specific penalties in the specified circumstances. The finance bill proposed to expand the scope of penalties by inserting new Sr. No.23 to the table which provides that any person who manufactures, possesses, transports, distributes, stores or sells cigarette packs without, or with counterfeited, tax stamps.
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ISLAMABAD
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he Federal Board of Revenue (FBR) has detected a huge money laundering case and recovered record Rs6.2 billion. The FBR’s Directorate General Intelligence & Investigation (I&I) Inland Revenues (IR) has made the highest-ever recovery of tax liability amounting to Rs6.2 billion, from a couple, Bashir Dawood and Maryam Dawood, of the Dawlance Group under the Anti-Money Laundering Act 2010. On Friday, the Inland Revenue Intelligence recovered this amount after the hearing at the Special Court Customs & Taxation Karachi, where the trial of Dawoods, allegedly accused of tax evasion, tax fraud, and money laundering was going on. The Director General, Khawaja Tanveer Ahmed, declared this a landmark case in the history of FBR, and admired the efforts of I&I-IR team who worked relentlessly on this case. He maintained that keeping the same path, the Directorate General would be able to recover billions of looted money of the government exchequer. The Directorate of Karachi received cheques of Rs6.2 billion of evaded tax in the case of Bashir Dawood & Ms Marium Dawood before the Court of the Special Judge Customs, Taxation and Anti-Smuggling Karachi. Bashir Dawood and Mariyam Dawood were major shareholders in three
companies namely M/s United Refrigeration (Pvt) Ltd, M/s Dawlance (Pvt) Ltd and M/s Dawalance Electronics (Pvt) Ltd till the year 2013. By the end of year 2013, they sold M/s Dawlance Electronics (Pvt) Ltd to a BVI Company (M/s Pan Asia Equity (Pvt) Ltd) for $3.3 million and dividends of $35 million were remitted to BVI during the next three years. Afterwards, in September 2016, all of the above referred three companies were purchased
FBR’s Directorate General Intelligence & Investigation (I&I) Inland Revenues (IR) has made the highest-ever recovery of tax liability amounting to Rs6.2 billion, from a couple, Bashir Dawood and Maryam Dawood, of the Dawlance Group
FIA detects Rs103b money laundering
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ISLAMABAD
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ederal Investigation Agency (FIA) has claimed to retrieve the data of money laundered abroad from Pakistan to the tune of Rs103 billion from the main servers of Khanani & Kalia International (KKI), a Pakistan-based money exchange company. According to the ofSicial sources, FIA has retrieved this data during its re-in-
vestigations launched in infamous Khanani and Kalia money-laundering case and a report has been presented to the Interior Minister Chaudhry Nisar Ali Khan. During the investigations, FIA has retrieved data of 56,000 transactions, from various storage mediums, having total value of Rs93b laundered abroad through KKI. The agency has also identiSied 1,023 companies who laundered money abroad, in connivance with KKI, to the tune of 22.69 billion rupees against 8103 transactions. Last month, Interior Minister
Chaudhry Nisar Ali Khan had said that the investigations of FIA had revealed that 100 billion rupees were laundered abroad from Pakistan during 2005 to 2008 in Khanani and Kalia case. After a meeting at the interior ministry, the minister had called the Khanani and Kalia case as unbelievable, saying the government was properly pursuing it. The accused in the case, registered by FIA in 2008, even got acquittal as they in connivance with the ofSicials got record of the case disappeared, the minister had said.
by a Turkish company for consideration of $242 million. The sale value of M/s Dawlance Electronics (Pvt) Ltd, that was sold at $3.3 million three years ago, the deal was $94 million. After these suspicious transactions, the authorities traced and attached Sive bank accounts of Bashir Dawood and Mariyum Dawood, having deposits of Rs19.72 billion. After taking over the case, I&I-IR Karachi gathered the evidence, linked them.
FBR enhances FED rate on cigarettes he Federal Board of Revenue has enhanced federal excise duty on cigarettes. The FBR issued SRO 407(I)/2017 to enhance the duty which shall be levied and collected on fixed basis. The FBR imposed FED at Rs3,740 per thousand cigarettes on the locally produced cigarettes if their on-pack printed retail price exceeds Rs4500 per thousand cigarettes.
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Rs120m Ogra corruption scandal ‘shelved’ ISLAMABAD: Due to incompetency of the interior ministry, a scam of Rs120 million in Oil and Gas Regularity Authority (Ogra) has been put into cold storage. According to sources, inspection team of Ogra raided at Oil Depot of Attock Refine Oil Limited in Vehari and recovered more than 11146000 litter oil worth of Rs120million in the name of petroleum development levy whereas the company had showed 865000 litter oil. Report revealed that the company was directed to pay petroleum development levy imposed on 10.28 million liter during this FIA started to crack down against the companies and elicited all record from Ogra.
Tuesday June 6, 2017
Business
Senate continues talks on Finance Bill 2017 ISLAMABAD
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he upper house of the Parliament continued discussion on Finance Bill-2017, containing the annual budget statement, under article 73 of the constitution. Participating in the discussion, Senator Javed Abbasi appreciated the Minister for Finance for resenting a balanced budget which is being hailed by all segments of society. He said that despite several challenges at time when PML-N came into power but due to its strong economic strategy, now the country is on path of economic progress.
CPI inflation increased 5% in May ISLAMABAD
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He said that special attention was paid on energy sector and several mega projects were initiated in this sector. He said that international economy monitors declared country’s economy as emerging economy and termed government’s policies as best Sinancial discipline. He said that present GDP remained at highest level in ten years. He said that more people were included in tax net with focus on revenue generation. He added foreign exchange reserves also increased during the tenure of present government. He said that the government has paid special attention on promotion of agriculture sector while several incentives have been announced for farmers including agriculture loans for them. He said that there was plan to set
SNGPL, SSGCL laid 6,129 km transmission network in current year
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he head line inflation based on Consumer Price Index (CPI) has increased by 5 percent on yearon-year basis in May 2017 as compared to an increase of 4.8 percent in the previous month and 3.2 percent in May 2016. According to Pakistan Bureau of Statistics (PBS), on monthon-month basis, it increased by 0 percent in May 2017 as compared to an increase of 1.4 percent in the previous month and a decrease of 0.2 percent in May 2016.
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up 1000 new stitching units to promote textile industry. He said that the government was working to overcome the load shedding issue by adding 10,000 MW in the system. He said that Rs 401 billion has been allocated for energy sector projects
in the budget while allocation has been made for Dashu Dam. He added Rs 35 billion has been allocated for higher education while sufSicient allocation has been made for provision of soft drinking water. Senator Rehman Malik said that efforts should be made to increase foreign remittances. He added steps should be taken for promotion of overseas employment while new passport and NADRA ofSices should be set up in foreign missions to maximum facilitate the overseas Pakistanis. He said that more allocations should be made for law enforcement agencies while antinarcotics force should be further strengthened. Senator Usman Kakar said that poor and destitute segments of the society should be given more relief in the budget.
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ISLAMABAD
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ui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), under the transmission expansion programme, have laid around 6,129 kilometer transmission network in their operational areas during the current Siscal year. “The companies laid 814 kilometer gas transmission network, 4,153 kilometer distribution and 1,162 kilometer service lines and connected 104 villages and town to gas network,”
ofSicial sources in the Ministry of Petroleum and Natural Resources. They said the gas companies have provided 360,465 domestic, 339 commercial and 20 industrial connections across the country during the ongoing Siscal year. Besides, the companies invested Rs 17,925 million on transmission projects, Rs 11,183 million on distribution projects and Rs 14,925 million on other projects bringing total investment to about Rs 44,033 million. Answering a question, the sources said Pakistan has an extensive gas network of over 12,202 km transmission 119,736 km distribution and 32,823
services gas pipelines to cater the requirement of more than 8.4 million consumers across the country by supplying about four billion cubic feet per day natural gas. Meanwhile, National Highway Authority (NHA) through its dedicated efforts in the last one year took a lead in the road infrastructure development through the private sector participation. NHA successfully attracted private sector investment and has awarded/supported Sive projects worth over Rs. 144 billion, which is more than the average annual Foreign Direct Investment (FDI) in Pakistan, an ofSicial source.
NAB, UK crime agency to ink agreement LAHORE
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he National Accountability Bureau (NAB) and the National Crime Agency (NCA) of UK are planning to sign an agreement which would enhance their cooperation in anti-corruption work and sharing of training facilities. This was decided during a meeting between the anti-corruption watchdog’s chief Qamar Zaman Chaudhry and the country manager of NCA-UK Osman Ahmed at the NAB Headquarters, a statement released by the bureau read. During the meeting, Chaudhry described their partnership with NCA-UK as one of ‘high value’, adding that since anti-corruption work transcends national boundaries, close cooperation between the two agencies would help curb corruption. He appreciated that NCA for organising two study visits to the UK for six NAB officers in 2016 and 2017 which had proved productive in improving the investigation skills and techniques of the officers apart from broadening their vision and international exposure. To further improve the capacity building of NAB’s investigation officers, NCA-UK had carried out Training Need Analysis (TNA) for the bureau in consultation with the concerned division of the anti-corruption watchdog.
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Govt borrowing increases 69.43% to Rs850b in July-May KARACHI
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he government borrowed Rs850 billion from commercial banks for budgetary support between July 1, 2016 and May 19, 2017, compared with Rs502 billion in the corresponding period of the last Siscal year, reSlecting increase of 69.43 per cent. Non-tax revenues have declined
due to fall in inSlows from the coalition support fund. However, the federal government had repaid Rs188 billion in debts to the central bank a year earlier. The pace of public sector borrowing from the central bank remained higher since the Sirst quarter of FY17 right after the conclusion of the International Monitory Fund-backed Extended Fund Facility programme. In FY17, the government was to borrow Rs741.3 billion from banks
to meet budget-related expenditures, which was higher than the actual target of Rs452.9 billion set for the current Siscal. The government has announced it would allocate Rs1 trillion for the federal Public Sector Development Programme. This would be 40 percent higher than revised estimates of Rs715 billion for the current Sinancial year. Meanwhile, The direct and indirect cost incurred by Pakistan economy due to war in Afghanistan and
terrorism amounted to $123.13 billion equivalent to Rs10,373.93 billion during the last 16 years. According to Economic Survey 2016/2017, despite the conSlict and continuing instability in Afghanistan that has been an impediment to regional peace and development, Pakistan has achieved progressive and signiSicant improvement in the country’s overall security landscape in recent years. This has been accomplished largely due to successful counterterrorism efforts
of the government under the framework of the comprehensive National Action Plan, backed by an extensive and highly effective counterterrorism operation Zarb-e-Azb by the armed forces, and actions by other security and law enforcement agencies and intelligence-based operations across the country. After successful completion of Zarb-e- Azb, a country-wide operation Radd-ul-Fassad has been launched for eliminating any residual or latent threats.
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ISLAMABAD
M FAIZAN
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he Federal Board of Revenue (FBR) has collected over Rs 10 billion through 38,034 transactions under section 236K of withholding tax from sellers of immovable property in 11 months of the current Sinancial year till May 31. Sources told Customs Today that during the last Sinancial year, the FBR collected Rs 5.38 billion in 44,288 transactions in the same period under section 236K. The FBR has now collected double amount in the current Sinancial year as compared to the last year under the same head. Total difference between current Sinancial year and last year collected amount is over Rs 4.674 billion while 6,254 transactions are less as compared to last Siscal year. In July 2016, the FBR collected Rs 255.541 million in 1625 transactions while during last Sinancial year in the same month the FBR collected Rs 312.494 million in 2,565 transactions. In August 2016 (current FY) FBR collected Rs.617.676 million through 2,675 transactions while in August of FY 2015 FBR had collected Rs 155.966 million in
3,623 transactions. In September 2016 FBR collected Rs 674.169 million through 2,696 transactions while last FY in same month FBR had collected Rs 359.108 million in 3,061 transactions. In October 2106 FBR collected Rs 784.144 million in 2,784 transactions while last FY this amount was Rs 537.126 million in 3,649 transactions. In November 2016 FBR collected Rs 1,019 million in 3,965
transactions while last fiscal year of same period, revenue was Rs 393.714 million in 3,549 transactions. In December 2016 FBR collected Rs959.219 million in 3,598 transactions as compared to last FY Rs513.361 million in 4,627 transactions. January 2017 FBR collect Rs 1.139 million in 4,118 transactions as compared to last FY in same month Rs 509.131million in 4,217 transactions. In February 2017 FBR collect Rs 1,212 million in 4,612 transactions as compared to last FY Rs 490,618 million in 4,237 transactions. In March 2017 FBR collect Rs 1,482 million in 4657 transactions as compared to Last FY in same period Rs 633,518 million in 5,233 transactions. In April 2017 FBR collect Rs 1,053 million through 4,278 transactions as compared last FY in same period Rs 594.550 million in 5,182 transactions and n in o i l in May 2017 FBR coll i 1m 55.54 lected Rs 856.519 mil2 s t R s g la ted c n i e r l lion through 3,026 l u o d FBR c ctions nth a transactions while last o s n m a e r t sam e fiscal year in same pe1625 h n t o i ill r in riod FBR had collected 494 m al yea . i c 2 1 n 3 a fin Rs 574.849 million in ted Rs collec R ctions B 4,345 transactions. F the transa
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Tuesday, June 6, 2017
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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.
Implications of rising debt burden A
LAHORE
DR AFTAB AFZAL
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ccording to newspaper reports, the external debt of are reaching $79 billion by the end of fiscal year 2016-17 amid challenges of a fragile external payments position and growing political instability in the country. The government has planned to offload debt to GDP ratio by 50 percent in one and half decades, as gross public debt crossed over Rs 2 trillion and net public debt by Rs1.9 trillion this fiscal year. Experts hope the government will use its potential to bolster macroeconomic stability and will put
the debt to GDP ratio on a downward trajectory in the years to come. The public debt is expected to be reduced by 60 percent of the GDP during the outgoing fiscal year and the Fiscal Responsibility and Debt Limitation (FRDL) Act has been amended by defining the ceiling for the budget deficit at four percent of the GDP. During first three quarters of the current fiscal year, the gross public debt has been recorded an increase of Rs 1.19 trillion. An increase in external debt has contributed Rs73 billion into the public debt. The financial managers reduced the average cost of gross public debt by 40 basis points during first six months
of current fiscal year thanks to the implementation of the Medium Term Debt Management Strategy. By issuing Sukuk bonds, the government also mobilized external inflows from various development partners during the first nine months of the current fiscal year. Reports suggest the government issued fresh guarantees of Rs 368 billion during first half of current fiscal year whereas average cost of domestic debt portfolio has been reduced by 50 basis points during the period. In fact, the government is beating about the bush to maintain fiscal stability by artificial arrangements. However, until it is able to generate money by
stimulating industrial and agriculture sectors of the country, the makeshift arrangements would not work. The exports have been declining as persistent energy crisis are haunting the industry which is unable to produce export surplus. Burdening the country with debts will adversely affect the economic growth. The debt burden reached 66.5 percent of the gross domestic product from 63.5 in four years. Any debt management strategy to enhance debt servicing capacity will simply not work without the real growth in the industrial sector and that is the area of concern. It is hoped the government will do its best to settle the mess soon.
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Abu Dhabi National Takaful Q1 profit up 12% ABU DHABI: Abu Dhabi National Takaful Company, a leading takaful operator, has posted a net profit of Dh20.1million ($5.4 million) for the first quarter (Q1) of the year, marking a 12 per cent over the net profit of Dh18.1 million for Q1 2016. Q1 2017 results are a continuation of the company’s strong performance in net profitability over the past seven years. In 2016, ADNTC’s net profit increased by 16.4 per cent to Dh48.4 million as compared to Dh41.6million in 2015. The company attributes its success to excelling across all financial & non-financial indicators with a key focus on sound underwriting discipline, excellent customer service and unique product offerings. ADNTC’s Q1 2017 underwriting profit reached Dh17 million showing an increase of 10 per cent as compared to the underwriting profit of Dh15.4 million that was reported for the same period last year.
Women Chamber of Commerce & Industry Sialkot being set up: Dr. Maryam SIALKOT
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ecessary arrangement are being finalized for setting up Women Chamber of Commerce and Industry Sialkot (WCCIS), said chairperson Departmental Committee on Women Entrepreneurs of Sialkot Chamber of Commerce and Industry (SCCI) Dr. Maryam Noman. She said that Women Chamber will be operational soon in this export oriented city and hub of cottage industry of the country and this step was being taken to facilitate the business women. At present a large number of business women were registered with SCCI and doing their business successfully she said. Dr.Maryam said main objective
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of setting up Women Chamber was to empower women folk and to promote women entrepreneurship of Sialkot and its adjoining areas. She said that the dream of national development could not be materialized without the involvement women in the national development process. The chairperson further stated that Pakistani women had the capability and courage to bring revolutionary changes in every sphere of life and cope with global challenges more effectively. The Women Chamber will play its instrumental role in promoting women entrepreneurship enabling them to play their due role in boosting up export volume and Women Chamber will extend necessary support and guidance to females in setting up their independent business and concentrate on capacity building she added.
Tuesday June 6, 2017
Chambers
EXIM Bank will give infrastructural support to exports, imports: FCCI E
LAHORE
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stablishment of EXIM Bank of Pakistan Limited is a positive step in right direction to give infrastructural support to the exports and imports from Pakistan, however, to fully achieve its objective, real stakeholders must be included in its Board of Directors (BODs), said Engineer Muhammad Saeed Sheikh President Faisalabad Chamber of Commerce & Industry (FCCI). He was talking to Yasir Hayat Khan, company secretary who met him in his office here today. President briefed him about the economic importance of Faisalabad and said that out of total US$ 18 billion exports of Pakistan, the share of Faisalabad is around 33%. Similarly, out of US$ 11 billion textile exports, Faisalabad is contributing US$ 6 billion per annum which is around 55% of the total textile exports. He welcomed the establishment of EXIM Bank and said that its primary objective is to support the exports and imports and being export centre, Faisalabad will be the main
beneficiary of the EXIM Bank. He said that generally, figures are quoted that Karachi is the main revenue generating city of Pakistan which is not true. He said many Punjab and KPK based companies have their head offices in Karachi. If the revenue generated by only Punjab based companies is included in the concerned province, then the Faisalabad will
becomes the major contributor towards the revenue generation. President also suggested that Mr. Yasir should have detailed meetings with the office bearers of PTEA and PHMEA. However, President FCCI expressed concern that despite of the economic importance, the Faisalabad is not given due representation in the economic policy
FPCCI praises cut in interest rate for small land-holders KARACHI
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he Regional Chairman of the Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) Horticulture Exports, Ahmad Jawad, has appreciated the government’s decision to cut the markup rate for small land holders under budget 2017-2018. In a statement, he said bringing down the rate to 9.9 percent for farmers owing 12.5 acres or less of land coupled with decision to revise the agriculture credit of Rs 1000 billion through Zarai Taraqiati Bank Ltd (ZTBL) and National Bank of Pakistan were positive developments. Reduction in the sale tax on DAP
from Rs 400 to Rs 100 and also to facilitate farmers to purchase urea under NFC arrangement at the rate of Rs 1000 per bag was a welcome move, said Ahmad Jawad. FPCCI’s Standing Committee Chief said incentives were needed to be offered to promote country’s horticulture exports that, despite all potential, constitute just 0.3 percent share of the national exports. He urged concerned authorities to offer needed incentives to concerned exporters to help gain value addition for fresh fruits and vegetables ultimately acquiring more and more international markets for these goods. Meanwhile, Regional Chairman on Horticulture Exports, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Ahmad Jawad
has suggested export of sugarcane to help local farmers meet their production expenses and enhance country’s foreign earning. Talking to a delegation of Sindh Chamber of Agriculture (SCA), led by Ejaz Nabi here on Monday, he said Pakistan, being the Sith largest producer of sugarcane in the world, needed a prudent approach to make optimum of the resource for equal beneSit of agriculturists as well as national exchequer. He agreed with the SCA that commerce ministry must formally allow sugar cane export so that farmers be in a better position to have proper returns for their crops. FPCCI’s Regional Chairman for Horticulture Exports mentioning that major portion of locally grown sugarcane is crushed at farm.
making. He demanded that Faisalabad be given maximum representation in the BOD of EXIM Bank to make it productive and result oriented. Earlier, M. Yasir Hayat Khan briefed that the idea of EXIM Bank floated in 2004 but it was incorporated in 2015. It is fully owned by the Government of Pakistan which is not only providing finance but also extending the facilities of insurance and guarantee to the exporters and importers. He told that Asian Development Bank has hired a consultant to formulate the aims and objectives of this Bank and to make it truly productive and supportive towards imports and exports. He told that a questionnaire has been provided to fully assess the needs of importers and exporters. He requested President FCCI for the immediate circulation of this questionnaire so that proper aims and objectives could be clearly defined in its mandate in according to the actual demands and needs of the importers and exporters. He hoped that this Bank will become operational within next six to eight months.
Arkansas’ May revenues exceed revised forecast rkansas’ revenues for May were up 0.3 percent from a year ago and 20.5 percent above the recently revised forecast, state finance officials said Friday. Gov. Asa Hutchinson announced in late April he was cutting $70 million from the state budget for the current fiscal year because revenues were lagging below forecast. On May 2, the state Department of Finance and Administration officially revised the forecast to reflect that reduction and lowered its revenue projection for the fiscal year that begins July 1 by $43 million. Net available general revenues in May totaled $339.2 million, which was up $1 million from a year ago and $57.8 million above the revised forecast. –CB Report
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Court submits detailed challan in mobile smuggling case Tuesday June 6, 2017
Islamabad Arshad Nawaz assumes charge as Secretary-IR
LAHORE: Special federal court of customs taxation and anti-smuggling has submitted a detailed challan against an accused arrested by the customs authorities from Sialkot. The accused, travelling from South Africa to Sialkot, was intercepted by the customs officials at Sialkot Airport. Customs team, during a search of the luggage, found 30 costly mobile phones hidden in the baggage of Muhammad Sarwar.
Abdul Hamid assumes charge as Second Secretary
ISLAMABAD
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rshad Nawaz Chheena, a BS-19 officer of Inland Revenue Service, has assumed the charge of the post of Secretary. The officer, in pursuance of Board’s Notifications No. 1895-IR-I/2015, dated 24.08.2015 and No. 2202-IR-I/2016, dated 30.08.2016, took the charge of the post of Secretary at Federal Board of Revenue (HQ), Islamabad with effect from May 27, 2017. Arshad Nawaz had assumed the charge of the post of Second Secretary (TARP Wing) (BS-18) at Federal Board of Revenue (HQ) on October 19, 2011. Meanwhile, Abdul Hamid, an ex-Cadre officer, has been promoted to BS-18 on regular basis with immediate effect. According to the notification, if the officer is drawing performance allowance, he will continue to draw the same after promotion to BS-18. The officer, presently posted as Second Secretary, will continue to work at his present place of posting till further orders.
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Munir Ahmad assumes charge as Superintendent unir Ahmad, a BS-16 officer, has assumed the charge of the post of Superintendent in Federal Board of Revenue (HQ) Islamabad. The officer, pursuing the Board’s Notification No.1262-IR-IV/2017 dated 20.04.2017, took the charge of the post of Superintendent (BS-16) in FBR (HQ) Islamabad with effect from June 1, 2017. Meanwhile, Muzaffar Ali Soomro, a BS-19 officer of Inland Revenue Service, has assumed the charge as Commissioner-IR (OPS) (WHT), Regional Tax Office, Sukkur. The officer, in pursuance of Board’s Notification No. 1502-IR-I/2017, dated 17.05.2017, relinquished the charge of the post of Commissioner-IR (OPS) (IP/TFD/HRM), Regional Tax Office III, Karachi. –CB Report
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bdul Hamid, an officer of FBR ex-Cadre, has assumed the charge as Second Secretary (BS-18). The officer, in pursuance of Board’s Notification No.1545-IR-V/2017 dated 25-052017 on his promotion to BS-18, relinquished the charge of the post of Second Secretary at Federal Board of Revenue (HQ), Islamabad with effect from May 25. Meanwhile, Jawhar Ali Shah, a BS18 officer of Inland Revenue Service, selected through the process of internal job posting (IJP), has been granted performance allowance. The officer, presently posted as Deputy Commissioner, IR, Regional Tax Office, Abbot-
tabad, has been granted performance allowance with effect from May 19, 2017. The grant of performance allowance will be gov-
erned 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 discontin-
ued in case prescribed terms and conditions are not fulfilled within one month from the date of issuance of this notification.
Sialkot Excise seals 300 properties due to tax default
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SIALKOT
ZAFAR MALIK
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he special recovery teams of the Excise and Taxation Department have sealed as many as 300 properties besides , impounding 211 luxury and other vehicles for the prolonged nonpayment of their taxes in Gujranwala Division’s all the six Sialkot, Narowal, Gujrat, Mandi Bahaud Din, HaSizabad and Gujranwala districts, during the ongoing crack down against the tax defaulters as well. According to the senior ofSicials, the E&T had sent the Sinal notices to these defaulters but they were still reluctant to pay their property taxes, token taxes and registrations fees as well. Meanwhile, the food department’s special teams have collected the samples of Slour from as many seven Slour mills in Sialkot district’s all the four Sialkot, Daska, Sambrial and Pasrur tehsils here. District Food Controller (DFC) Sialkot Muhammad Rohail Butt told that these sam-
ples have been collected and sent to the Lahore Laboratory to check
the quality of the Slour being supplied to the Sasata Ramzan
Bazaars by these Slour mills in Sialkot district as well.
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FBR allows tax credit for four years in stock exchange KARACHI: Federal Board of Revenue (FBR) has allowed tax credit for four years to new enlistment in the stock exchange. An amendment introduced through Finance Bill 2017 to Section 65C of Income Tax Ordinance, 2001. Under the amended section, where a taxpayer being a company opts for enlistment in any registered stock exchange in Pakistan, a tax credit equal to 20 percent of the tax payable shall be allowed for the tax year in which the said company is enlisted and for the following three tax years. “Provided that the tax credit for the last two years shall be ten per cent of the tax payable.” PwC Pakistan Chartered Accountants explained that the said tax credit will now be available for four tax years in the following manner:- (i) For first two years (including the year of enlistment) at the rate of 20 percent.
Income tax collected on fertilizer import brought into FTR KARACHI
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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. How-
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ever, 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. Meanwhile, Realizing the huge undocumented sales of batteries in the country, the Federal Board of Revenue (FBR) has imposed advance tax on sales of batteries. Through Finance Bill 2017, amendment has been made to Income Tax Ordinance, 2001 regarding advance tax on sales to distributors, dealers & wholesalers and retailers under Section 236G and 236H of the Ordinance.
Tuesday June 6, 2017
Karachi
SHC restrains tax dept from recovery from 12 petitioners till next hearing F
FBR to establish directorate general of transfer pricing
KARACHI
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KARACHI
M B RANA
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he Sindh High Court (SHC) issued notices to the Tax Department and deputy attorney general and restrained the tax authorities from forced recovery till next date of hearing on a constitutional petition Siled by M/s Junaid Corporation, M/s J.R.B Traders, M/s Harris Traders, M/s Home Style and eight other companies against the enhancement of valuation of porcelain tiles over and above 12.5% of the valuation ruling No: 874/2016 dated 22/06/2016. Hearing the petition, a two-member bench, headed by Justice Munib Akhtar, also directed them to Sile their respective para-wise comments on the next date of hearing. The court also adjourned the matter for May. Earlier, counsel for the petitioner stated that they are importers of ceramic & porcelain tiles and always fulSilled all the liabilities regularly. He added that Director General Valuation issued a valuation ruling, determination and enhanced customs valuation of subject goods over and above 12.5% of the valuation ruling No: 874/2016 dated 22/06/2016
without lawful authorities and without fulSilling legal requirement as per law. Citing to Chairman Federal Board of Revenue (FBR), Collector of Customs Model Customs Collectorate West, Collector of Customs Model Customs Collectorate Port Muhammad Bin Qasim, Collector of Customs Model Customs Collectorate East and DG Directorate General of Customs Valuation as respondents, they pleaded with the court to kindly set aside the impugned valuation ruling.
Meanwhile, The Sindh High Court (SHC) has directed Chief Commissioner Inland Revenue LTU-I/LTU-II to engage counsel for representing the tax department before court on an income tax petition Siled by the Commissioner Inland Revenue Large Taxpayers Unit (Legal). According to reports, the commissioner challenged an impugned judgment by the appellate tribunal over recovery of disputed amount from M/s Dewan Textile Mills Limited.
ederal Board of Revenue (FBR) has proposed through Finance Bill 2017 to establish Directorate General of Transfer Pricing. The Finance Bill 2017 proposed to introduce a Directorate General of Transfer Pricing which shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers. The primary function of the Directorate General is to conduct transfer pricing audit. The Bill also seeks to provide explanation regarding transfer pricing audit to mean the audit for determination of transfer price at arm’s length in transactions between associates and which would be independent from other audits of income tax affairs of the taxpayers that are conducted under sections 177, 214C and 214D. It is further proposed that the FBR may by notification in the official Gazette, specify the criteria for selection of taxpayer for a transfer pricing audit and may further specify functions, jurisdiction and powers of Directorate General of Transfer Pricing. Considering the growing global emphasis, the intricacy of the issues involved in transfer pricing compliances and ensuring transparency between transactions between related parties.
Port Qasim Customs confiscates eight used Hino trucks
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KARACHI
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ort Qasim Customs has confiscated eight used Hino trucks, which were cleared through a clearing agent by misdeclaring the year of manufacture to circumvent the provisions of import policy order. Port Qasim Additional Collector Yasin Murtaza detected the fraud wherein the accused inflicted a loss of Rs9.0 million on the exchequer through presenting fake and forged documents. The R&D team comprised of PA Shahid Rizvi, AO Amir Shuja. M/s J.L Enterprises clearing
agent got cleared eight Hino trucks in favour of various importers declaring the year of manufacture as 2012 by presenting the forged preshipment Inspection reports and vehicle registration document (VRD) issued by the government of Hong Kong to substantiate the year of manufacture. As per the undertaking of the importer that all the particulars declared are true, the vehicles were released. However, post clearance scrutiny was initiated to confirm the year of manufacture of the vehicle. Accordingly, Commercial Attaché, Consulate General of Pak-
istan, Hong Kong was requested for verification of the particulars of vehicles. Initially, a letter purportedly issued by Consulate General of Pakistan, Hong Kong was received in the Collectorate, which confirmed the particulars, the year of manufacture and registration certificate of the vehicle. However, the Consulate General intimated the Collectorate that the earlier letter confirming the particulars was fake. Meanwhile, Pakistan Consulate General Hong Kong sent the copy of the report received from the Transport Department, Hong Kong government. The record confirmed that the actual
year of manufacture of the imported Hino trucks were 2004 and 2006 not 2012 as declared by the importer. This information established the fact that the importer and customs clearing agent deliberately mis-declared year of manufacture of the vehicles by presenting forged Hong Kong vehicle registration document (VRD) and Pre shipment Inspection Certificate in order to get 12 year older vehicle cleared in violation of provisions of Import Policy Order 2016. The vehicles have been seized and contravention reports have been served for further adjudication.
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Tehran signs economic agreement with Damascus Tuesday June 6, 2017
World
TEHRAN: Iran and Syria signed an agreement in Damascus on Thursday to enhance economic cooperation. A Syrian economic delegation led by Syrian Minister of Industry Ahmad al-Hamou is scheduled to visit Iran this week to negotiate the supply of goods from Iran to Syria, IRNA reported. Iranian weekdays start on Saturday. According to Syria’s Economy and Foreign Trade Minister Adib Mayyaleh, Syria currently exports close to $1 million worth of goods to Iran annually and imports around $750 million in return. Iranian exports to Syria include chemicals, electronic parts, pharmaceuticals, auto parts, baby formula and faucets. Imports include olive, olive oil, apparel, yarn and fabrics. Earlier in January, Iran signed major economic contracts with Syria in what Tehran and Damascus hailed as “a new page” in economic ties.
SARS seizes more than 7kg of Iran conserves exports exceed $37 million rhino horns at OR Tambo airport TEHRAN
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he discovery of the horns was made when the shipment was put through the scanning process by customs ofSicials. The South African Revenue Service’s (Sars) customs unit seized more than seven kilograms in rhino horns that were declared as “tea bags” at OR Tambo International Airport, Sars said in a statement. The discovery of 7.035 kilogram of horn was made on Wednesday when the shipment was put through the scanning process by customs ofSicials who observed that the images were consistent with rhino horns. Sars spokesperson Sandile Memela said: “Upon a physical inspection, the contents of the box were found to include eight pieces of rhino horn wrapped in foil. The rhino horn was concealed amongst packets of
House to approve bill imposing taxes on fuel he House of Representatives will approve on second reading next week the bill imposing a P6 tax on diesel, kerosene, cooking gas and bunker oil, which is used for electricity generation. Critics claim the new levy will result in higher transportation costs, increased fares and higher consumer prices and power rates. Emerging from a majority caucus called by Speaker Pantaleon Alvarez, Majority Leader Rodolfo Fariñas told a news conference that they agreed to start floor debates on the bill on Monday or Tuesday and pass it on second reading on Wednesday. “We will approve it on third and final reading before we adjourn our first regular session on May. The bill will be with the Senate when we open our second regular session in July,” he said. –CB Report
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sweets and chocolates. The shipment was destined for Hong Kong via Qatar, Doha.” The found goods have been handed over for further investigation to the South African Police Service and the Directorate for Priority Crime Investigations (Hawks). Meanwhile, Counterfeit goods and drugs with a combined value of over R10,29 mil-
lion were seized at OR Tambo International airport on Saturday and Sunday, ofSicials said. Customs ofSicials opened various consignments from Hong Kong destined for different suburbs in Gauteng when the illicit goods were discovered, the South African Revenue Service (SARS) said in a statement on Tuesday.
Russia starts largest renewable energy auction in bid for jobs
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ussia is pressing ahead with its biggest-ever auction for renewable energy, seeking to award contracts to purchase 1.9 gigawatts of clean electricity as well as attracting foreign investment to support jobs at home. The government tender starting Monday has attracted the interest of Fortum Oyj, Finland’s largest energy company, which is prequaliSied to participate in the auction. Enel SpA of Italy may
also participate. “Russia has had a long history of leadership in the energy sector and now has the opportunity to extend that leadership into renewable energy,” said Adnan Amin, director-general of the International Renewable Energy Agency. Developing the country’s renewable resources, he said, “can signiSicantly contribute to the country’s economic objectives such as economic growth and employment.” –CB Report
ore than 22,700 tons of jam, jelly and marmalade worth close to $37.4 million were exported in the last Iranian year that ended on March 20, 2017, according to data released by the Islamic Republic of Iran Customs Administration. These Iranian products were exported to 35 countries, of which Afghanistan, Iraq, Australia, Germany, the US, Turkey, Switzerland, Sweden, Denmark, Canada, the UK, Norway, the Netherlands and the Czech Republic were the main destinations, Mizan Online News Agency, afSiliated to the Iranian Judiciary, reported. Meanwhile, The Central Bank of Iran has published growth Sigures for the third quarter of the last Iranian year (September 22-December 20, 2016). According
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to CBI, the Iranian economy grew 15.7% last fall compared with the corresponding quarter of a year before. The rate stood at 4.6% without taking oil production into account. The oil sector registered a whopping growth rate of 74.6% in Q3, thanks to the lifting of nuclear sanctions against Iran, which allowed the country to signiSicantly ramp up production to pre-sanctions levels. Sanctions were lifted on January 2016, when Tehran and world powers started to implement a deal they clinched in 2015 to resolve disputes over Iran’s nuclear program. The mining and industries sector posted 11.3% growth. Services and agriculture recorded 5.6% and 5% expansion respectively. The construction sector, which shrank 25.4% amid a slump in the domestic housing sector, has been struggling with for years now. OfSicial statistics on the growth rate for the Siscal 2016-17 have yet to be published by relevant bodies, though Economy Minister Ali Tayyebnia has estimated a growth of 8%.
China to increase imports from US
hina hopes to strengthen its economic and trade ties with the US and plans to increase imports of energy, agricultural products, manufactured goods and services trade from the country, the Ministry of Commerce (MOFCOM) said in a report released on Thursday. China and the US are the world’s two largest economies, accounting for 40 percent of the global economy and 30 percent of the world’s foreign direct investment, according to MOFCOM’s research report on China-US economic and trade relations. Bilateral trade and economic cooperation has reached unprece-
dented depth and breadth, closely linking their economies. China would like to increase imports of US agricultural products such as soybeans and cotton, and speed up negotiations with the US regarding traceability and inspection and quarantine of US beef imports, which would benefit 6 million American farmers, according to the report. China is also willing to discuss importing more US aircraft, microchips, machine tools and other high-tech products, the MOFCOM report said. “China-US economic and trade relations affect the global economy. –CB Report
Thailand’s oil and gas firm plans new Asia investment
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BANGKOK
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hailand’s largest oil and gas explorer PTT Exploration and Production Pcl (PTTEP) is planning new investments or an extension of its operations in Sields in Thailand, Malaysia and Myanmar, it said. In Thailand, state-owned PT-
TEP would bid to extend its concession to operate the Bongkot gas Sield beyond the existing expiry date of 2023, Executive Vice President Yongyot Krongpanich told an investor brieSing. “We are conSident that we will win the concession as we have expertise from operating in this Sield for two decades,” he said, adding the result was expected in the Sirst quarter of 2018.
PTTEP was also in talks for a joint bid with Chevron Group for Thailand’s Erawan gas field concession, but was ready to compete against the U.S. major when the tender opens in September if no agreement for a joint bid was reached, he said. The existing concession for Erawan, which is now operated by Chevron, expires in 2022. Yongyot also said PTTEP
planned investments in Malaysia and Myanmar, but did not give details. PTTEP had $4.4 billion cash and had no plans to issue bonds, he said. PTTEP said earlier this month it was suspending investment in Indonesia after the Indonesian government Siled a $2 billion lawsuit against the Thai state-owned energy Sirm for alleged damage from an oil spill eight years ago.
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Brazil expanding crude export options RIO DE JANEIRO: Major oil producers in Brazil are starting to diversify their export strategies in anticipation of an expected leap in exports to around 2.6mn b/d in 2026, from 798,000 b/d in 2016. Current oil production of around 2.5mn b/d is forecast to double by 2026, but limited refining capacity means more of that crude, particularly medium grades from prolific sub-salt reservoirs, will head to importing nations concentrated in Southeast Asia. Producers have long complained that red tape and rules tipped in favor of state-controlled Petrobras, which says its exports will grow by 47.5pc in the next four years, have been a costly obstacle to marketing their share of production.
Koreans caught smuggling 2,348kg of gold in ‘private parts’ ozens of Korean citizens were caught smuggling 2,348 kilograms of gold hidden in their “private parts,” the Korea Customs Service (KCS) said on Tuesday. It was the nation’s biggest smuggling bust. Fifty-one people, including several housewives, were apprehended at Incheon International Airport early last month. The smuggling had been happening for about two years. Male smugglers were hiding five or six gold bars (3cm x 3cm), each weighting 200 grams, in their rectums while the women hid the gold in their rectums or vaginas. The value of the gold was about 113.5 billion won ($100 million) the highest value of gold confiscated in a single smuggling case. The smuggling happened from March 2015 and the gold came from Tokyo and China’s Yantai. Korea’s gold price is usually higher than many countries because of a 15 percent additional tax imposed on gold products, according to the KCS. –CB Report
World Customs
Duba Customs attempt to smuggle 1 million tablets
he CBI has arrested a superintendent of the Customs department from Sonepat in connection with theft of gold from the vaults of the department at the Indira Gandhi International Airport. The agency has filed FIRs in a number of cases pertaining to the alleged pilferage of over 38 kilograms of gold from the Customs vaults here. CBI sources said Sanjiv Kumar, the Superintendent in the Customs department at Sonepat in Haryana, has been arrested recently in connection with the case. Meanwhile, GOA: In a smuggling attempt, the Air Intelligence Wing of the Commissionerate of Customs Goa Unit on Sunday seized 698 grams of gold worth Rs 1.86 million from a Uttar Pradesh native at the Dabolim Airport. –CB Report
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New Zealand budget to cut tax on lower earners ew Zealand’s Parliament has passed legislation to increase income tax thresholds for lower- and middle-income earners. In its Budget, announced on, the Government said that the lowest tax bracket, under which a 10.5 percent tax rate applies to income up to NZD14,000 (USD9,871), would be increased to NZD22,000. The next tax bracket, which features a 17.5 percent rate, will be hiked from NZD48,000 to NZD52,000. There is no tax exempt threshold in New Zealand. The increases to the thresholds would apply from April 1, 2018, providing the current governments wins the upcoming election. Parliament approved the measures. The Government said this will result in a tax reduction of NZD11 a week for people earning NZD22,000 or more, rising to NZD20 for those earning NZD52,000 or more. The Budget includes plans to simplify the tax and transfer system. The legislation approved on May 26 would also repeal the Independent Earner Tax Credit. Meanwhile, Official figures show that combined meth seizures between Customs and the New Zealand Police have increased by more than 20 times in the last decade, with authorities seizing almost a ton of meth last year alone. –CB Report
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CBI arrests customs official in gold theft case
Tuesday June 6, 2017
RIYADH
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e saw the Customs port of Duba -aly sea coast thwarted two attempts to smuggle red- a large amount of grain Captagon reached (1.111.587) million and one hundred and eleven thousand five hundred and eighty – seven tablets, found hidden within the consignments received for Customs. In detail, said Ali Atwi, Director General of the Customs port of Duba: aborted the large amount of
pills Captagon through two attempts to smuggle, where he received the customs Sirst consignment mounted on one of the next truck is cartoners from (A4) paper and when subject to customs procedures were found (545.490) Sive hundred and fortySive thousand four hundred and ninety tablets Captagon, hidden in the consignment way workmanship so that the paper cavity located in the carton and put quantities of grain Captagon inside these cavities and were then covered each cavity properly from the top paper for the purpose of camouSlage. He added Atawi: that in the same way as the previous smuggling and through a similar consignment of previous
consignment enables customs to thwart another attempt to smuggle (566.097) and six hundred and sixty thousand and ninety seven tablets Captagon. Meanwhile, Raised public Customs Department through its portal poll want through which to identify the visuals and the aspirations of its partners in the work of customs specialists and concerned by about modifying the duration of (60) days for the survival of goods squares, warehouses and customs docks land, sea and air ports and is left after that. It includes the amendment to reduce the duration of the perishable goods to (15) days such as medicine, food, and other goods and non-perishable (30) days.
Turkey applies to sell as much as $8b in debt abroad ANKARA
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urkey may sell as much as $8 billion in debt, according to a U.S. regulatory Siling, a sign the government may be preparing to ramp up borrowing as it seeks to plug a widening budget deSicit. Turkey may offer the securities from “time to time in one or more offerings” and will use the proceeds for general Sinancing purposes, which
may include the repayment of debt, according to a prospectus on the U.S. Securities and Exchange Commission’s website on Friday. The government has increased spending to bolster growth and policy makers have said they may miss their 1.7 percent budget deSicit target this year by as much as 1 percentage point. The government has already sold $6.25 billion of foreign currency debt in 2017, exceeding the full-year target. Meanwhile, analysts say domestic borrowing plans
through July suggest lira debt sales will exceed redemptions this year for the Sirst time since 2009. So far the Siscal slippage isn’t yet enough to spook the bond market, which has seen a surge in foreign demand after the central bank’s efforts to stem lira declines sparked a currency rally and drove yields above 11 percent, creating one of the world’s top carry-trade opportunities. The government debt-toGDP ratio was around 30 percent at the end of 2016, about half its level
a decade ago and comparing favorably with most emerging markets. “Timing is not that bad,” said Dmitri Barinov, a money manager at Union Investment Privatfonds GmbH in Frankfurt, citing calm in markets and a decrease in the cost of Turkey’s credit default swaps. “The newly issued Turkey ’47 is trading at highs in price, so seems like markets like the credit right now.” Turkey’s dollar bond due May 2047, issued earlier this month with a coupon of 5.75 percent.
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NAB arrests central accused of Rs 1870m graft case Tuesday June 6, 2017
Lahore
LAHORE: National Accountability Bureau (NAB) Lahore claimed on Monday to have arrested another central accused of Rs 1870 million graft case of ETPB. According to NAB spokesman here on Monday, Faizan Shams was appointed as Investment Management Unit Officer (IMO) in connivance with main accused Asif Hashmi and other co-accused. The accused monitored the whole Rs 1870 million scam deal being an IMO, whereas, the same kept all records/file of the ETPB and M/s High Links deal. On the directives of Director General NAB Lahore Shahzad Saleem, the NAB arrested Faizan Shams from Lahore who would be produced before the Accountability Court for seeking of his physical remand.
Court extends judicial remand of dry milk smuggler for 14 days LAHORE
M IMRAN MEHAR
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he Special Federal Court of Customs Taxation and Anti Smuggling has approved the extension in judicial remand of suspect who was arrested by customs authorities from Lahore on charges of smuggling of powder milk and by showing it as plastic raw material. Sources told Customs Today an accused Zahid Rasheed was booked by Customs Intelligence and Investigation while he was trying to smuggle a huge quantity of powder milk of different brands. The Customs intelligence, on secret information, intercepted a truck in suburbs of Lahore and found it loaded with powder milk international brands. The customs
LHC rejects bail application of drug smuggler
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ahore High Court (LHC) has disposed of a bail application of drug smuggler. Court heard the case against accused Majeed in a 15 kilogram drug smuggling case. Counsel for appellant argued before the court that the Anti-Narcotics Force (ANF) has registered a fake case against the accused, and there is no evidence against Majeed for smuggling drug. Counsel appealed for the bail of the accused. On the other side, AntiNarcotics Force (ANF) presented the record before the court that showed that many cases are registered against the accused. He prayed for the rejection of the bail application of the accused. After hearing the arguments from both sides, LHC has dismissed the bail application of accused Majeed. –CB Report
team also raided a warehouse and found 9,349 bags of powder milk of different brands. Sources said that the worth of the recovered powder milk is Rs 70 million. Accused Zahid Rasheed has caused huge loss to the national kitty in the wake of taxes and duties. All of the milk was smuggled from different countries by different routes, especially from Afghanistan. After completion of physical remand he was sent to jail and now he is on judicial trial. The Customs Intelligence registered a case against him under Customs Act 1969. Meanwhile, Special Federal Court of Customs Taxation and Anti-Smuggling has extended a 14-day judicial remand of an accused Muhammad Riaz in a case of 14 kilogram gold smuggling. Accused Muhammad Riaz was arrested by the customs authorities after the rejection of a pre-arrest bail by the Supreme Court of Pakistan.
PCA detects huge tax evasion by M/s M N Enterprises
LAHORE
M HAYAT
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irectorate of Customs Post Clarence Audit (PCA) has summoned the management of M/s M N Enterprises Busi-
LPG prices’ hikes is second gift of Ramazan: Irfan Khokhar
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hairman LPG Association Irfan Khokhar said the second gift of Ramazan for the poor of Pakistan from the LPG Company SSGC (Sui Southern Gas Pvt. Ltd) is LPG prices hiked by Rs. 5 kg, domestic cylinder Rs. 40/50 & commercial cylinder Rs. 190 by SSCG after all the LPG marketing companies’ prices were increased. SSGC is fully prepared to loot the poor of Pakistan during the holy Ramazan. LPG Company SSGC (Sui Southern Gas Pvt. Ltd) has become
successful in defaming government & ministry petroleum & natural resources’ work. Irfan Khokhar decided to provide the court FIA & NAB with the evidence against SSGC`s conspiracy of creating artificial shortage and hiking the LPG prices against the government of Pakistan. The SSGC accepted the challenge on argument at any place by Irfan Khokhar to provide evidence to general public. LPG crisis could rise to a new level if left without action. –CB Report
ness Centre Hall Road Lahore in duty and tax evasion on import of tarpaulin. According to details, the PCA Lahore observed that the import clearances data against HS Code 6306.1210 effected from various Model Customs Collectorate during the calendar years 2012 and 2013 revealed inadmissible concession of sales tax and value added sales tax
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under the SRO (1125)/2011 dated 31.12.2011, wrongfully availed on import of Tarpaulin i.e. sun shedding which is speciSically excluded from that ambit of said SRO and hence was not entitled for such beneSit. It has been observed that importer had imported various consignments consisting of tarpaulin and got it cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/201 1, dated 31.12.2011. Hence, it was said that the importers have short paid an amount of Rs 8335340 sales tax, additional sales tax and income tax due to wrongful, concession under the SRO I 125(D/2011 dated 31.12.2011. The importer was asked to pay abovementioned short paid amount of duty/taxes within 10 days of receipt of this letter positively. The importer was told in case they do not agree with the audit observation; they may provide the written clariSication along with supporting documents as well as import documents.
Customs seizes alcohol & other items ustoms ofSicials have conSiscated about 18 wine bottles from passengers travelling via different Slights during a raid on Allama Iqbal International Airport. Sources told Customs Today that the ofSicers carried out operations in different Slights coming from Dubai to Lahore, Turkey to Lahore, Jeddah to Lahore and Muscat to Lahore. Customs took action in Pakistan International Airlines (PIA) Slight 790, PK 888, PK 204, Turkish airways Slight 715, Gulf Air 790 and Saudi Air Slight 726. During the actions in these Slights, customs staff recovered 18
bottles of alcohol. Customs allowed all the passengers to go after the seizure of alcohol bottles from their possession. Customs has also conSiscated one LED of 32 inches from a passenger. Dozens of cell phones, wireless sets and mobile accessories were also recovered from Lahore airport. The security ofSicers have launched an investigation into the matter. It is a common practice that passengers, coming from European countries, carry bottles of alcohol with them but many times they leave them on the premises of the airport to avoid arrest. –CB Report
M.M Goraya CNG case against RTO adjourned till next date
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LAHORE
SAJID NAWAZ
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ederal Tax Ombudsman (FTO) has postponed the hearing of a case Siled by M.M Goraya CNG against the Regional Tax OfSice (RTO) Lahore till the next date of hearing. FTO Advisor Mian Munawar Ghafoor heard the case No: FTO-
LHR/0000134/17 Siled by M.M Goraya CNG. The counsel for the appellant argued that the RTO has been failing to release the sales tax refund to the appellant for the last two years. He said the RTO has been collecting excessive tax from the company for the last two years. The petitioner approached the ofSicials concerned several times for release of the refunds but the RTO ofSicials failed to clear them after the
lapse of a reasonable time. Finally, the appellant decided to approach the FTO seeking his intervention in this case. The counsel appealed the FTO advisor to direct the RTO to clear the refunds’ claims. The counsel further said that delay in release of refunds put the burden on the taxpayer so the RTO should audit the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for
RTO contended that the appellant has not submitted all the record in the ofSice for claiming refunds. If appellant provides an accurate record, the RTO will release the refunds after a proper assessment, he added. After hearing the arguments from both sides, FTO adjourned the case until next date for further hearing and directed the parties to appear on the said date to present arguments in the case.
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New port boosts Djibouti’s dream to be maritime hub WASHINGTON: East Africa’s smallest country Djibouti took a step towards realising its dream of becoming a continental maritime cargo hub with the inauguration of its newest and largest port, recently. The US$590 million (527.5 million euro) facility is part of an infrastructure blitz by the country, sandwiched between Ethiopia, Somalia and Eritrea, that includes three other ports and a railroad to the capital of landlocked Ethiopia. The Doraleh Multipurpose Port (DMP) can handle thousands of automobiles and millions of tonnes of bulk commodities every year, according to a statement from the Djibouti Ports and Free Zones Authority (DPFZA).
Port of Corpus Christi receives very large crude carrier Anne CORPUS CHRISTI: It was a huge milestone for the Port of Corpus Christi Friday as the largest crude oil tanker ever to call a Gulf of Mexico port made its way through the Corpus Christi ship channel. It took three hours to dock the ship into place, but with a lot of teamwork and planning, Harbor Pilot Jay Rivera said the crude oil carrier fit right into its spot with room to spare. “This is a huge day for the area, for the Port, for our waterway, for the American export of oil,” Rivera said. “It’s a big, big deal.” In partnership with Oxychem, the VLCC Anne, or Very Large Crude Carrier, is the largest carrier to come into the Port of Corpus Christi. It can hold two million barrels of oil. The typical carrier holds only 300,000 bar-
rels. Anne is 1,093 feet long, which is the length of four football fields, and it’s 200 feet tall. However, when it’s in the water, only 65 feet of the ship’s height is visible. Port Commission Chairman Charlie Zahn said it is a huge day for everyone involved. “I’m extremely excited,” Zahn said. “We have a vision in the Port of Corpus Christi. We’re gonna be the energy port of the Americas.” Rivera said the vessel and partnership with Oxy is also a win for the local economy.”It’s going to, again, develop our oil fields,” Rivera said. “It’s going to bring more jobs to the area and it’s also going to be a huge economic boost for the area.” Before Anne leaves the port, it will be loaded with 900,000 barrels of oil. It will then head to places like Asia and Europe. –CB Report
Ports & Shipping
Port of Charleston to host record-setting container ship WASHINGTON
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ess than a month after welcoming the largest container ship to visit the East Coast, the Port of Charleston is ready for an even bigger visitor. The OOCL France, capable of carrying up to 13,926 cargo containers, made its way through the Panama Canal this week on its way to East Coast ports, including a scheduled June 3 stop at the Wando Welch Terminal. It’s still too early in the voyage to tell how many containers will be moved on and off the France when it’s docked in Mount Pleasant or how many cargo boxes the vessel will carry when it leaves the Port of Charleston for its home port in Hong Kong, said Erin Dhand, spokeswoman for the State Ports Authority. At full capacity, the France can carry about 830 more cargo boxes than the COSCO Development, which currently holds the record albeit short-lived for largest container ship
to call on East Coast ports. The 1,202foot-long France is owned by Orient Overseas Container Line and is part of the Ocean Alliance’s weekly South Atlantic Express service between Asia and the United States. It is scheduled to stop at the Port of Virginia on Tuesday before heading to Savannah on Friday and then to the Port of Charleston. That was the same route the COSCO ship took. When it passed through the Panama Canal on Wednesday, the France eclipsed the
Development as the largest vessel to make its way through the waterway that was expanded last year to accommodate big container ships known as neo-Panamax vessels. “This trend towards the transit of 13,000 (container) or greater vessels demonstrates the acceptance and trust that the shipping industry has with the service provided by the expanded Canal,” Jorge Quijano, chief executive of the Panama Canal Authority, said in a statement.
Tuesday June 6, 2017
Two ships take berth at Por Qasim wo ships M.T Intrepid Republic and M.T Impros carrying chemicals and furnace oil took berths at Engro Vopak Terminal and FOTCO Oil Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA) here on Monday. Meanwhile six more ships with Containers, Canola Seeds, Soya Bean Seeds and General Cargo also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was observed at the port at 44% on Sunday where a total of seven ships namely, Nicoline Maersk, Akinda Bridge, Rui Ning-2, Ruyi-1, Good Hope Max, Intrepid Republic and Impros are currently occupying PQA berths to load/offload Containers, Coal, General Cargo, Soya Bean, Chemicals and Furnace oil respectively. A cargo volume of 114,591 tonnes, comprising 89,568 tonnes import cargo and 25,023 tonnes export cargo inclusive of containerized cargo carried in 4,457 Containers TUEs) 3,140 imports TUEs and 1,317 TUEs exports) was handled at the port during last 24 hours. –CB Report
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Invergordon port seeks rig dismantling ticket T
WASHINGTON
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he Port of Cromarty Firth is poised to move into the lucrative decommissioning market after applying for licences. The Invergordon port has become the Sirst to seek decommissioning permits from the Scottish Environment Protection Agency (Sepa) under the updated regulations. The port says the work will bring new jobs to the area and, if permits are granted, decommissioning projects could start in September. The port lodged two applications, one under Pollution Prevention Control regulations and one under the Radioactive Substances Act. The radioactive part of the application is for the safe handling of naturally occurring radioactive materials that may be present on energy structures. Consultation on the port’s plans
to bring decommissioning to the area began last August with port users, local community councils and politicians. Public notices are being issued this week to begin the Sinal consultation phase. Investment in a new quayside at the port’s Invergordon Service Base means the port has three berths and 80,000 square metres of laydown space ready to accept decommissioning projects from the September deadline. It is estimated it will cost around £75 billion to decommission oil and gas structures which are coming to the end of their life in the North Sea. However, to date, most of the contracts have gone to Europe because of the lack of adequate licensed facilities in Scotland. Port general manager Captain Calum Slater said: “The port is ideally located in the North Sea. Our status as a trust port, together with our proven environmental record,
ensures platforms will be decommissioned in a way that meets the latest environmental standards. “We are already in discussions with customers who have structures to decommission and I can see the Sirst of the new era coming to the Sirth next year. “Other ports are aligning to a single contractor, but we’re doing the opposite to provide customers more Slexibility and choice. “Our open port philosophy will allow any reputable client, operator or contractor to use the port’s decommissioning licence. “The port will work with these companies to ensure that all dismantling activities at the Invergordon Service Base are carried out to the highest standard.” Meanwhile, 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 fumigation, 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 Sirst 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 quarantine pests from import and export cargo.
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FBR receives another 8,092 tax returns in a week ISLAMABAD: The Federal Board of Revenue has received another 8,092 tax returns during the last week. According to the latest Active Taxpayers List (ATL) for tax year 2017, the number of taxpayers has increased to 1,166,552 as compared to previous week’s 1,158,460. FBR sources said that the ATL will increase before this fiscal year end i.e. June 30 as the government has announced tough measures for non-filers of income tax returns in the budget 2017-18.
Tuesday, June 6, 2017
CUSTOMS BULLETIN
DG Valuation revises customs values of exhaust fans vide VR No 1174/2017 KARACHI WAQAR AHMED ANSARI www.customsbulletin.com
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he Directorate General of Customs Valuation has revised the customs values of exhaust fans vide Valuation Ruling No 1174/2017 under Section 25A of the Customs Act 1969. According to the details, it has been brought to the knowledge of this Directorate General that the exhaust fans are being imported under invoiced as compared to the prevailing prices in the international market. Therefore, the Directorate General initiated an exercise for determination of customs values of exhaust fans. Meetings with stakeholders were held on 26-04-2017 and 24-052017. Importers had been requested to furnish invoices of imports during last three months showing factual value. Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices is-
sued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the beneSit of difference in price is passed on to the local buyers.
They were literature, evidences and other “r contentions. They provided Ion methods given in Section ms values of Cooking Range on 25 (1) was found inapplicable.
Thereafter, market enquiry as envisaged under section 25(7) of the Customs Act, 1969, was conducted. For the purpose, different markets were surveyed repeatedly. The com-
puted value method as provided in Section 25(8) of the Customs Act, 1969, could not be applied as the conversion costs from constituent material at the country of export were not available. Online values of subject goods were also obtained. All the information so gathered was evaluated and analyzed for the purpose of determination of customs values. Meanwhile, The Directorate General of Customs Valuation has revised the customs value of massage chair, foot massager and other massager through Valuation Ruling No 1173/2017 under Section 25-A of the Customs Act, 1969. This Directorate General has earlier circulated VDB values of massage chair, foot massager and other massager vide Valuation Data Base Letter No.239/2017 and 240/2017 dated 06-03-2017, respectively. However for uniformity of assessment, the Directorate General initiated an exercise for determination of customs values for the subject goods. Meeting with stakeholders was held on 17-05-2017and the importers were requested to furnish invoices of imports during last three months showing factual value. Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained.
PSI companies of UAE, China booked for fraud KARACHI
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uetta Customs has booked certain importers and foreign pre-shipment inspection (PSI) companies including M/s Bureau Veritas of UAE and M/s SGS China for defrauding Pakistan’s authorities to enable clearance of trucks older than Sive years. Import Policy Order 2016 restricts import of
trucks older than Sive years. M/s. Al Habib Enterprises & Engineering, Quetta imported Used Hino Prime Movers of Japanese origin from UAE via Karachi Port to NLC Dry Port, Quetta and M/s Zarif Khan Hussain Zai & Brothers imported used Hino Concrete Transit Mixers from China via Karachi Port to NLC Dry Port, Quetta under transshipment. The said importers Siled GDs on WeBOC and submitted Pre-shipment Inspection CertiSicates issued by M/s Bureau Veritas, UAE and SGS China certifying the age of imported machines not older
than Sive years and Euro-II emission compliant as required under Import Policy Order, 2016. However, certiSication to the extent of Original Equipment Manufacturer (OEM) of the vehicles have not been certiSied by the said Pre-shipment Companies. At the time of Siling of GDs in WeBOC, partial amount of duty and taxes, self assessed by the importer amounting to Rs. 4.79 million have been paid. However, after due process of examination through WeBOC, the total leviable duty and taxes comes to Rs10.914 million. On the directives of Collector
Saeed Jadoon, Deputy Collector Shah Faisal opted to to verify the exact year of manufacturing of the vehicle, and the matter was referred to M/s Hinopak Motors Limited Pakistan Karachi – the manufacturer’s representative – for veriSication. It was conSirmed that the vehicles were way older than Sive years. As such, On the basis of said procured information, it has become evident that the used Hino Prime Movers and Hino Concrete Transit Mixers in connivance with the aforesaid PSI Company have been imported by misde-
Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi
claring the year of manufacture as 2012 for their illegal import into the country. An FIR has been lodged against the importers and PreShipment Inspection companies of UAE and China. Preliminary investigations found that around 35 vehicles had been imported and cleared illegally on the basis of fraudulent PSI certificates provided by such companies. These vehicles already cleared were imported by M/s Al Habib Enterprises, M/s FFK & Construction Company and M/s Khan Gul Government Contractors.