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Karachi, Fri June 9, 2017
KARACHI
WAQAR ANSARI
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he Directorate of Post Clearance Audit (PCA) has detected tax evasion of Rs 2,707 million during the month of May. Sources told Customs Today that PCA Director Gul Rehman directed Deputy Director Sajid Ali Baloch and other relevant ofOicials to scrutinize the import
data of different consignments arrived here from Saudi Arabia, China, Qatar, Bahrain, Japan, United Arab Emirates, Europe, Italy, USA, European Union, India, Korea, Indonesia, Vietnam, Oman, Malaysia, Singapore and Germany. Most of these consignments were loaded with leather and tyres wax, polyester dyed suiting, shirting fabric, and polyester dyed fabric. During the scrutiny, it was re-
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vealed most of these consignments were cleared by using wrong SRO no: 1125, 1178. Sources said that PCA teams issued tax evasion notices to all those company which were found involved in tax evasion. Sources said that some company willfully avoided to file reply, after their failure Customs Post Clearance Audit authorities forwarded the case to Customs Adjudication for further proceedings.
Customs dispatches first lot of Afghan transit trade through bonded train
FBR’s revenues surge by 81% in four years: Ishaq Dar
KP Govt to build 545MW power project costing $ 1.42b in Kohistan
Customs Appraisement achieves Rs70b collection target of May
FBR chairman refutes reports of bringing 3.8m more people under tax net
DirectorTransitTrade Irfan Javed said that the Pakistan Customs has successfully | See pAge 02 |
Dar has said that FBR revenues went up from Rs1,946 billion in 2012-13 | See pAge 03 |
KPGovthasdecidedtobuild545megawatt hydropowerprojectwithanestimatedcost | See pAge 04 |
The Customs Appraisement has achieved monthly revenue target of Rs70 billion | See pAge 14 |
FBR Chairman Dr Irshad has refuted the reports of bringing 3.8 million more people | See pAge 16 |
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Customs to determine value of window AC Friday, June 9, 2017
KARACHI: With the aim to determine customs value of window type air conditioner, the Directorate General of Customs Valuation has scheduled meetings with the stakeholders, including importers, traders and industry representatives. According to the schedule on Tuesday , a meeting would be held with the representatives of Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Karachi Chamber of Commerce & Industry (KCCI), importers and manufacturers of window type air conditioner at 11:30am.
National
customs dispatches first lot of Afghan transit trade through bonded train
multan customs issues oNo for seizure of gold & foreign currency MULTAN
KARACHI
WAQAR AhmeD ANSARI
ImRAN ALI
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ollector Customs Adjudication issued an Order-in-Original for confiscation of 14 kilogram gold and foreign currency worth Rs64.6million. A Multan customs authority had seized the said gold and foreign currency at the Multan International Airport. It is important to mention here that the customs staff intercepted two female passengers named Haleema Riaz and Sumaira Asif who were wearing gold bangles and anklets in traditional dresses. Both female passengers were arrested when they were going to Dubai by Flight No: FZ340 of Fly Dubai. Customs found during investigation that arrested female smugglers were working for a network. Both females’ husbands were also found involved in the gold smuggling. During the proceeding, both females and an accused Rana Muhammad Riaz submitted a written reply to the show cause issued by customs adjudication through Advocate Asharib Sohail and disowned the recovered gold and foreign currency. During the hearing, Haleema Riaz and Sumaira Asif failed to submit any proper reply to the show cause as they were not interested to contest the case.
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irector Transit Trade Irfan Javed said that the Pakistan Customs has successfully dispatched the Oirst lot of Afghan transit trade consignments to Peshawar through the bonded train on Friday. According to the details, Director Transit Trade Irfan Javed, who was present on the occasion, personally conOirmed the sealing of containers and functionality of trackers Oixed in the train and containers at Pakistan International Container Terminal (PICT). Addressing the participants on the occasion, Director Irfan Javed said that this is a landmark development on the part of Directorate of Transit Trade as 16 containers stuffed with assorted goods were dispatched via Pakistan Railways to Peshawar. From Peshawar, these goods would be transported through trailers to Afghanistan. Irfan Javed said this all comes true due to combine efforts of the staff. Meanwhile, Customs Appraisement East has lodged an FIR against M/s Pakistan International Container Terminal (PICT) ofOicials and other people involved in fraudulent clearance and delivery of fabric consignments by cross shifting of the cargo after examination by Customs. M/s Esso Co. International imported four consignments of grey
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fabric from UAE and Oiled goods declaration. The collectorate in persuasion of credible information that Indian-origin banned grey fabric was being imported from UAE kept surveillance on consignments reaching from UAE. Later, it was known the grey fabric imported by M/s Esso Co. International had been got cleared fraudulently by stufOing the
same in some other containers. GD log reports of above GDs reOlected that the importer held up the consignments by not accepting Orderin-Original generated for non-recovery of invoice from the containers or on the stage of assigned to gate out. To check the veracity of the information all the four containers
mentioned on GDs of M/s Esso Co. International were re-examined and astonishingly the goods were found replaced with jumbo plastic dustbins in three containers and mattresses in fourth. On further perusal of the matter it was found that the goods found in those containers were actually imported by M/s Uzair Enterprises, Lahore.
Rto recovers illegal cigarettes packets from warehouse T
ISLAMABAD
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he Federal Board of Revenue has recovered 5,988 cigarettes packets in a warehouse of Philip Morris Pakistan which is allegedly used as facility for undeclared/concealed production of non tax-paid cigarettes. According to the FBR’s Regional Taxpayer OfOice (RTO) Rawalpindi, the ofOicials tracked a vehicle loaded with cigarette of differ-
ent brands manufacturing by M/s. Philip Morris Pakistan (PMP) Ltd. The vehicle was intercepted soon after its exit from company’s hitherto undeclared warehouse at GT Road, Chakwal Morr, Mandra, Gujjar Khan, Tehsil Gujjar Khan District Rawalpindi. The PMP’s warehouse staff produced certain record in follow up of seizer of their vehicle for clariOication. Examination of record revealed that statutory provision of Federal Excise Act, 2005, Federal Excise Rules, 2005 and SRO 217(I)/2010 dated
31.03.2010 are not being observed. As a result of this exercise total 132 packets of unmatched cigarette were seized and a separate Contravention Report has already been framed and sent for adjudication to LTU Karachi. However the alarming ratio of mismatched cigarette, unearthed while examining the aforesaid vehicle necessitated & triggered the subsequent action by RTO Rawalpindi wherein the team members were authorised for detail physical checking of undeclared warehouse. The team accord-
ingly visited the premises and found huge cigarette manufacturing and packing machine were parked at the premises despite the fact that PMP had submitted a categorical report to Directorate General I&I-IR that all machines of Mandra Factory have been scrapped & cut into pieces. This reply was furnished during an inquiry by I&I-IR wherein one of such PMP’s machines was detected by I&I-IR at an undeclared/illegal cigarette manufacturing unit at Buner, KPK. Presence of huge plant & machinery not only
belies PMP’s statement to I&I its presence poses a potential threat on account of any possible illegal manufacturing. A contravention report in this regards has already been forwarded to LTU Karachi. Huge stock of 14000 packets of different brands was stored in the warehouse. Detailed stock taking and cross matching of different documents/record (impounded during the said exercise) revealed some serious violation of FED/ST law & procedure, leading to and establishing factum of tax fraud.
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FST adjourns hearing of complaints filed by FBR employees ISLAMABAD: The Federal Service Tribunal dated in office the hearing of a number of cases after reserving decision in a case carrying complaint against the Federal Board of Revenue (FBR). A division bench of the FST comprising members, Muhammad Arshad Bhatti and Muhammad Javed Iqbal Kasi, heard the petitions carrying complaints on promotion and suspension matters. The bench reserved decision on Gulraiz Ahmed Raza’s complaint against his suspension. The petition was pending with the bench for months.
Friday June 9, 2017
National
customs car cells detains non duty paid toyota hilux Surf worth Rs2m
fBR’s revenues surge by 81pc in four years: Ishaq Dar
ISLAMABAD
m fAIZAN
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ustoms car cell apprehended a NDP Toyota Hilux Surf due to bearing bogus name plate of“Quetta”. The said NDP vehicle detained from Rawalpindi worth Rs.2.00m. According to details told by Assistant Collector car cell Majid Gaad that on tip of information shared by Collector Customs Collectorate Islamabad the car cell formed a squad and made raid at Sadder (Rawalpindi) where the above said NDP vehicle was roaming with bearing fake name plate WAG-894 Quetta. He told that the car cell team intercepted the vehicle and asked the driver of the vehicle to show legal document have but the driver failed to provide any relevant document rather he just provide a book which was also proved bogus.
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pak hy oils Ltd moves Shc challenging notice KARACHI
m B RANA
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ak Hy Oils Limited approached the Sindh High Court (SHC), challenging recovery notice amounting to Rs1,764,544 issued by Deputy Commissioner Inland Revenue E&C Unit-II, Zone-III, Large Taxpayers Unit-II Karachi. Counsel for the petitioner stated in its constitutional petition that petitioner is a private limited company and engaged in lawful business of manufacturing and supplying of refined petroleum and having STRN. He argued that his counsel never involved in any tax evasion case, however, deputy commissioner Inland Revenue E&C Unit-II, Zone-III, Large Taxpayers Unit-II Karachi passed an order dated 27/03/2017 under section 11 (2) of the Sales Tax Act 1990 against petitioner and creating the demand of Rs1,764,544 without lawful authority.
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ISLAMABAD
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ederal Finance Minister Ishaq Dar has said that Federal Board of Revenue’s revenues went up from Rs1,946 billion in 2012-13 to Rs3,500 billion in 2016-17, registering an increase by 81 percent. Now the FBR’s target is aimed at crossing Rs4,000 billion thus 20 percent growth in revenues of the FBR will be achieved on per annum in Oive years period and will double the FBR’s collection, Ishaq Dar said in a post-budget seminar in Islamabad. The minister said that the budget deOicit was slashed down from 8.8 percent of GDP to 4.2 percent of GDP for the upcoming Oinancial year despite increasing social safety net allocation from Rs40 billion to Rs120 billion, meeting requirements of TDPs and security arrangement by utilising Rs100 billion per annum and increasing development expenditures by allocating highest ever amount of Rs1,001 billion for 201718. He said that the government took taxation measures to net Rs87 billion additional revenues as the FBR imposed taxes of Rs120 billion and provided relief of Rs33 billion, so net additions is aimed at Rs87 billion. The minister said that budget deOicit was slashed down by 50 percent through stringent Oinancial discipline and doing away concessionary SROs that fetched R300 billion into the na-
tional kitty in last three years. He said that the opposition had staged drama outside Parliament, but they could not Oind out any fault in our presented budget. He said that they had presented a balanced budget and would be ready to rectify anything if someone presented good suggestion in the windup speech. He said that there were apprehensions that the government would open coffers of kitty on eve of upcoming election in this budget, but he had made it clear
he said that there were apprehensions that the government would open coffers of kitty on eve of upcoming elections in this budget, but he had made it clear that he would not let anyone to evaporate hard earned gains
pWD officials arrested for embezzling funds
N LAHORE
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ational Accountability Bureau (NAB) Lahore has arrested eight Public Works Department’s (PWD) ofOicials from different areas of city for making a loss of millions of rupees to government exchequer throught corrupt practices. According to NAB spokesman, accused SDO Khursheed Ahmed, XEN Humera Khurram, Sub Engi-
neer Naimat Ali, Sub Engineer Abdul Razzaq, Sarwar Bhatti, Muhammad Ishfaq, Muhammad Amin and Syed Shafqat Hussain in connivance with each other managed to cash bogus bills/payments fraudulently of the 19 development projects regarding construction of roads, soling, drainage etc in Sheikhupura which were already executed by the TMA, Sheikhupura. The NAB received a complaint against said XENs, SDOs, Sub Engrs of Pak PWD for misappropriating of
huge govt funds, whereas, massive embezzlements unearthed while complaint VeriOications were underway, subsequently, the NAB Lahore authorized an inquiry and collected all the records available with the PWD. During the course of inquiry and as per available record it was disclosed that all projects belong to 3 constituencies i.e. NA-134, PP-166 and PP-169. It is pertinent to mention here that most of the accused didn’t join inquiry proceedings with NAB even after repetitive notices sent to them.
that he would not let anyone to evaporate hard earned gains. He said that the budget deOicit went up by 0.3 percent because of TDPs and military operation against militants, so actually the deOicit would be standing at 3.9 percent against projection of 4.2 percent for outgoing Oiscal year. The development expenditures, he said, increased from Rs336 billion to Rs715 billion for outgoing Oiscal and allocated Rs1,001 billion for the next Oinancial year.
man held for selling SIms illegally he FIA Cyber Crime Lahore conducted a raid on and arrested a person for illegally selling mobile SIMs. According to the FIA spokesman, the team also recovered 60 illegally activated SIMs from the possession of accused Saleem Manzoor. A case has been registered against him and investigation is under way for the arrest of his accomplices.
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Cotton output down 7% during last ten-year ISLAMABAD: Cotton output has declined by 7 percent during past seven years owing to sharp decline in the sowing area, reported by Economic Survey 2016/2017. According to data revealed by the survey regarding production of important crops, the cotton output was 11.46 million bales in 2010/2011 which was declined to provisional figures of 10.67 million bales in 2016/2017. The survey said that during 2016-2017, cotton production was estimated at 10.67 million bales registering 7.6 percent increase over the production of 9.917 million bales during 2015-2016 but was lower than the target of 14.1 million bales by a considerable margin.
Friday June 9, 2017
Business
kp govt to build power project worth $1.42b PESHAWAR
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he KP Government has decided to build 545 megawatt hydropower project with an estimated cost of USD 1.42billion at Kandia valley in Kohistan to provide inexpensive electricity to consumers. The decision has been taken during a high-level meeting presided over by Chief Minister Khyber Pakhtunkhwa Pervez Khattak and was attended by Minister education Muhammad Atif Khan, MNA Sajida ZulOiqar Khan, General Manager SK-E&C, Eddy Nam, Manager Choris Hwans, Director National Engineering cooperation Babar
Anti narcotics squad constituted LAHORE
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Mehmood and other ofOicials, says a spokesman for KP Government. The project would be completed through South Company SK-E&C. The participants were given Oirst hand information about the com-
World Bank forecasts pakistan’s economy to grow by 5.5% in fY18
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SP Investigation Ghulam Mubashar Makain held a meeting with all divisional SPs at Qila Gujjar Singh Headquarters here regarding cases of narcotics and constituted Anti-Narcotics Squads. As per details, one sub inspector and one constable have been deputed circle wise in every division. Every SI would conduct investigation of ten cases related drug. Motorcycle will be provided to the incharge SI of drug squad to perform duty efficiently.
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pany, its quality of work, its experience in the Oield and the provincial government engagement with the company reOlected ToRs and the terms of engagement between provincial government and the com-
pany. The CM directed the government ofOicials to extend all possible help to Kaiga Hydro project in the whole process of execution and completion of the electricity production project. He assured that provincial government would extend all possible help to facilitate the foreign investors in the province. Khattak assured that the government would resolve the land acquisition and would also provide security to the investors and their investment. The project was being executed through Public Private Partnership and its feasibility had been completed. The project is different in terms of its execution as it would be carried out under Public Private Partnership and it is also part of the provincial government mission to tap all the sites for maximum electricity production.
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ISLAMABAD
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he World Bank forecasts that Pakistan is expected to pick up to a 5.2 percent rate in Oiscal 2017 (July 1, 2016 – June 30, 2017) and to 5.5 percent in the next Oiscal year, reOlecting an upturn in private investment, increased energy supply, and improved security. The overall growth in the South Asian region is forecast to pick up to 6.8 percent in 2017 and accelerate to 7.1 percent in 2018, reOlecting a
solid expansion of domestic demand and exports, World Bank’s June 2017 Global Economic Prospects said. The report said that global economic growth will strengthen to 2.7 percent in 2017 as a pickup in manufacturing and trade, rising market conOidence, and stabilizing commodity prices allow growth to resume in commodity-exporting emerging market and developing economies. The growth in advanced economies is expected to accelerate to 1.9 percent in 2017, which will also beneOit the trading partners of these countries.
Global Oinancing conditions remain favorable and commodity prices have stabilized. Against this improving international backdrop, growth in emerging market and developing economies as a whole will pick up to 4.1 percent this year from 3.5 percent in 2016. Growth among the world’s seven largest emerging market economies is forecast to increase and exceed its long-term average by 2018. Recovering activity in these economies should have signiOicant positive effects for growth in other emerging and developing economies and globally.
country imported 129,092,714 mmbtu LNg ISLAMABAD
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akistan imported 129,092,714 mmbtu Liquefied Natural Gas (LNG) in first three quarters of the current fiscal year to meet its growing energy needs.“From July to March, the LNG import remained 129,092,714 mmbtu as compared to 62,373,272 mmbtu of last year during the same period,” official sources said. They informed that as many as 83 LNG cargoes have arrived in Pakistan since March 2015, which were handled by the country’s only re-gasification terminal at the Port Qasim in Karachi. While, the government is in process of setting up second LNG terminal, which is expected to complete by March 2018. “The LNG is being imported by the Pakistan State Oil under competitive bidding and through short and long term contracts, while more LNG terminals will be set up to enhance Pakistan’s LNG import capability,” the sources said. Nowadays, they said, LNG was the essential part of the energy mix needs of the world’s emerging economies like China, Korea, Japan, India, Thailand, Indonesia, European Union, and Brazil. They said Japan was importing 80 million tonnes of LNG every year (MTPA) and India 15 MTPA due to the commodity’s cheap price and efficiency as compared to other fuels.
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Agri sector, cpec contributing to increase investment WASHINGTON
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he China-Pakistan Economic Corridor infrastructure projects and a stable macroeconomic environment is contributing to an increase in private investment in Pakistan, a latest World Bank report said, forecasting the economic growth to remain strong. According to the World Bank’s
June 2017 Global Economic Prospects, favorable weather and increased cotton prices are supporting agriculture production, and the CPEC infrastructure projects as well as stable macroeconomic environment is contributing to an increase in private investment. Agriculture output rebounded following the end of a drought, while the successful completion of an IMFsupported program enhanced macroeconomic conditions and foreign di-
rect investment, the report note. The World Bank report said Pakistan’s growth is expected to increase to 5.2 percent in the current Oinancial year and remain strong over the forecast horizon, reOlecting an upturn in private investment, increased energy supply an improve security. In the South Asian region as a whole, output expanded by an estimated 6.7 percent in 2016. In general, the report said, South Asian economies beneOitted from an improvement in exports,
low oil prices, infrastructure spending, and supportive macroeconomic policies last year. A pickup in regional growth is underway in 2017. Growth in South Asia remains strong, with regional output projected to grow by 6.8 percent in 2017 and an average of 7.2 percent in 2018-19. Excluding India, growth is projected to average 5.8 percent in 2017-2019, with some cross-country variation. The report said that inOlation has remained benign, hovering below target in
Bangladesh, Pakistan, and India while favorable weather in Pakistan and India and lower oil prices have helped keep inOlation low, and thereby made possible an accommodative monetary policy. Despite mixed progress with Oiscal consolidation in the region, deOicits generally declined, the report said, adding that an abrupt market reassessment about U.S. monetary policy tightening could lead to tighter domestic Oinancial conditions, which have been benign of late.
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MULTAN ImRAN ALI www.customsbulletin.com
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irectorate of Customs Intelligence and Investigation FBR Range Office has seized Rs40.10 million of smuggled vehicles and articles during anti -smuggling operations in the month of May for existing economic year 2016-17. Deputy Director Abdul Mueed Kanjoo has carried out anti-smuggling operations against smuggled origin vehicles and goods in the jurisdiction on the direction of Director General Customs Intelligence and Investigation Shaukat Ali. Customs Intelligence and Investigation Multan Range OfOice has impounded the eight smuggled vehicles in different successful actions during the month of May. As many as Oive eleven various seizures cases of worth Rs22.10 million have been detected by Customs Intelligence and Investigation Multan Range OfOice during May. Customs Intelligence and Investigation-FBR Range OfOice, Multan has formed two seizure cases of foreign origin vehicles of Rs7.5 million in May during their actions in the Dera Ghazi Khan Region. Customs teams enhanced the surveillance of smugglers movement in the jurisdiction to curtail smuggling of goods and vehicles throughout the month of May. Field Intelligence unit of Sadiqabad has
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Friday, June 9, 2017
made Oive various seizure cases in the month of May after their intensive crackdown against smuggled vehicles. Customs Intelligence and Investigation has seized Oive foreign origin vehicles in the region of Sadiqabad Region after crackdown against smuggled vehicles. Customs Intelligence has seized various vehicles of Toyota Hilux Pickup, Hino Truck, Toyota Corolla Car X, Mazda mini truck, Toyota Premio, Toyota Hilux and others. From all three regions of Customs Intelligence and Investigation Multan Range Of-
qabad f Sadi o t i n es in ce u re cas lligen u e z t i n e I s s field ir variou er the e five d a m ay aft m f has o st onth again n w o the m d ck ive cra hicles intens led ve g g u sm
Oice has seized the overall smuggled goods and vehicles of Rs40.10 million by creating 15 various seizure cases in the month of May. The Customs duty involved in the nine seizure cases were almost Rs.23.45 million during the month of May. Meanwhile, Customs Adjudication has Oinalized 30 various seizure cases of worth Rs81.577 million for the duration of May. According to details, Deputy Collector Customs Adjudication Farhat Ali has concluded the hearing of 24 seizure cases of worth Rs.7.677 million after their trial during the month of May. These decided seizure cases involved cloth, auto parts, liquor and other different goods. Customs Intelligence and Anti-Smuggling Organization have formed these seizure cases in their various actions in the jurisdiction. Deputy collector have decided all seizure cases in the favor of department after completion of their hearing. There were 36 new seizure cases of worth Rs22.050 million added for trial in the month of May. Additional Collector Customs Adjudication Talib Hussain has resolved Oive seizure cases of worth Rs8.400 million during the month of May. Additional Collector settled these Oive seizure cases of smuggled vehicles seized by Customs Intelligence and Investigation and AntiSmuggling Organization.
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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
economy vs peace
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akistan is the second largest economy in South Asia after India and has been achieving new successes despite border dispute Afghanistan, cross border firing on the line of control with India and growing tense relations with best friend of the past, Iran. The government is making all out efforts to achieve the fastest growth rate in the regional economies as China’s interest in the Pakistani economy is also growing and the size of its investment is increasing with deep economic and cultural cooperation. Both the countries are working to establish peace, fight terrorism together and resolve geographical issues through negotiations. Sobriety remained the basic component of the Chinese foreign policy toward Pakistan as well as India. The country has concentration more on the economy than regional issues and it has successfully kept a balanced approach in its relations with the countries of South Asia. On another note, India’s foreign policy is marred by ambiguity and contradictions and has border and water disputes with every country in the region. Once peace is restored, it will be beneficial for both the countries. Finance Minister Ishaq Dar, who is the driving force behind the economy, is considering tax cuts and a package of relief for agricultural sector which has performed well during the outgoing fiscal year. In the multi-billion dollar federal budget for the fiscal year beginning in July, Dar has also proposed a plan to enforce a zero-rated sales tax regime to boost exporters of textiles and leather products. It is hoped that cut in taxes will encourage foreign investors to avail opportunities in surgical and sports goods manufacturing as well as in growing auto industry. The gross domestic product of the country has been projected to grow at a rate of 5.7 percent and the economy has crossed $300 billion mark. If the government achieves the target, it will be a great success for the nation. The government is planning to spend Rs 1.68 trillion on development of infrastructural projects, including the construction of buildings, roads, dams and ports. The government is also working on various projects to enhance power generation capacity, as the persistent load shedding is haunting the industry.Unfortunately, Pakistan has shed points in world business confidence index and it is plunged to a six months low.
Need to shift to renewable energy A
LAHORE
DR AftAB AfZAL
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s China, Russian, Germany and many other nations are enhancing their electricity generation capacities by shifting their focus from coal and nuclear on to the renewable energy, Pakistan is banking all its hopes on the coal power projects to cater to the needs of its industrial sector. The government has formally commissioned its second coal-fired power plant in Sahiwal with the largest installed capacity of generating 9 billion kWh of electricity per year. The plant will cater to the energy needs of nearly 10 million peo-
ple. Prime Minister Nawaz Sharif has already inaugurated the first unit of the coal-fired power plant with a capacity of 660 megawatts and connected it to the national grid. The plant is being built as part of the China-Pakistan Economic Corridor project to reduce Pakistan’s energy shortage. The energy projects under China’s Belt and Road Initiative will have positive impact on the industrial as well as the domestic consumers in the country. According to a Chinese official, 11 out of the 17 energy projects are jointly planned by the two countries and opening of the Sahiwal power plant will entail a host of energy projects under the corridor project. Most of
the energy projects will be completed by the end of 2019. Pakistan is a country where sun shines the whole year and harnessing the solar energy can cater to the needs of the entire country for centuries. At a time a host of countries are shifting to renewable energy resources such as solar and wind electricity generation, Germany is taking a lead and has share of 85 percent of renewable energy to its credit. Until April this year, Germany used to get at least 64 percent of electricity from renewable energy resources such as from solar and wind. Up to 2pm, the share of renewables is now 85 percent and over three quarters of demand is covered by
clean energy from 10am to 6pm. Germany has drastically lowered its dependence on coal energy and has reduced the capacity of its nuclear power by 40 percent. Germany has spent nearly $1.7 billion on clean and renewable energy initiatives and is planning to cut out nuclear power altogether in five years. The country is also planning to reduce greenhouse gas emissions such as carbon dioxide, methane and Nitrous Oxide by 80 percent. Pakistan can also follow the suit if it produces voltaic cells itself which converts solar power into electricity. But the local production of voltaic cell is reportedly prohibited and the reasons are unspecified.
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Malaysia’s exports expand 20.6 percent KUALA LUMPUR: Exports in April maintained the strong double-digit growth momentum since the start of the year, recording a 20.6 per cent expansion for the month. Economists said the solid growth pace, the longest positive streak since January last year, was expected to continue through this month. However, they expect some moderation in the second half of this year as base effects ease and output and new orders soften. The International Trade and Industry Ministry said yesterday total trade expanded 22.5 per cent to RM139.18 billion in April. Exports rose 20.6 per cent to RM73.97 billion, while imports grew 24.7 per cent to RM65.21 billion. The trade surplus stood at RM8.75 billion for April, the 234th consecutive month of a trade surplus since November 1997. Alliance Bank chief economist Manokaran Mottain described the growth pace as “solid”, mainly due to strong performance of electrical and electronics (E&E) exports and continued rebound in oil and gas shipment.
fpccI president leaves for Russia to attend SpIef 2017 meeting ISLAMABAD
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resident of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zubair Tufail left for St Petersburg, Russia to attend the meeting of International Economic Forum. St Petersburg International Economic Forum (SPIEF 2017) is being attended by a number of heads of states, CEOs of multinational companies, experts and around 2000 delegates, a press release. Forum will discuss problems confronting global trade and ways and means to enhance it while reducing cost of doing business to improve standard of living of the masses. Different heads of states, top politicians, diplomats and officials
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of multinational companies will also have separate meetings on the side lines of the forum. President of the Apex Chamber Zubair Tufail will also meet delegates from friendly countries and heads of their federal chambers of commerce. He will discuss trade relations, emerging opportunities in the backdrop of CPEC and ways and means to enhance investment. Meanwhile, Zulfiqar Haider, Chief Commissioner, Islamabad Capital Territory visited Islamabad Chamber of Commerce & Industry and said that business community was playing an important role in the development of the economy and assured that he would play role to resolve their key issues. He said ICT Administration was fully cognizant of the issues being faced by the traders in F-8 Markaz due to the existence of district courts.
Friday June 9, 2017
Chambers
firpo criticizes chairman etpB for favoring illegal occupants P
KARACHI
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resident of the Karachi Chamber of Commerce and Industry (KCCI) Shamim Ahmed Firpo has highly criticized the Chairman Evacuee Trust Properties Board (ETPB) Siddiq ul Farooque for misusing powers and favoring the illegal occupants of rooms situated in KCCI building. In a statement issued, Shamim Firpo said that these illegal occupants in connivance with Evacuee Trust Oiled a totally false and fabricated reference before its Chairman Siddiq ul Farooque of PML (N) against KCCI with an only intention to further linger the proceedings and it was a matter of grave concern that Chairman ETPB is trying his level best to support and save them. President KCCI pointed out that the Karachi Chamber initiated legal action against illegal occupants of its premises almost a year ago and some cases have been decided in favor of KCCI whereas few other cases are currently underway at the honorable court but as these illegal occupants, who are being led by ex-
Senator of PML-N Khawaja Qutubuddin, feared that the courts may also give decisions in favor of KCCI, they joined hands with ETPB ofOicials and under their instigation, Evacuee Trust Properties Board Oiled reference before its Chairman Siddiq ul Farooque of PML(N) against KCCI and it was a matter of grave concern that they are receiving preferential treatment by ETPB because of their association with the ruling party of PML-N.
He informed that some of these illegal occupants, who had one to two rooms some 40 years ago according to records maintained by KCCI, have gradually occupied 12 to 17 rooms and are not paying any rent against these rooms. In fact, these culprits can be termed as ‘Qabza MaOia’ of Chamber’s property. He mentioned that the Honorable Court of VII-Rent Controller Karachi South recently ordered three illegal occupants of KCCI premises namely Khawaja Qutubud-
fpccI supports govt decision to discourage unnecessary imports ISLAMABAD
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he Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said it supports the decision of the government to discourage imports of needless items to save foreign exchange and reduce trade deOicit. The decision of the Finance Minister Ishaq Dar will support local producers while it will reduce imports and increase revenue for the government, it said. Business community supports the decision to upward revise regulatory duty on import of Oish from ten percent to twenty Oive percent, said Atif Ikram Sheikh, Chairman FPCCI Regional
Committee on Industries. Government has increased regulatory duty from Oifteen percent to twenty percent on yogurt, cheese, honey and other dairy products to discourage its consumption which will also help local producers, he said. Atif Ikram Sheikh said that government should also keep an eye on local producers to keep them from using this opportunity to exploit masses while
the decision may encourage smuggling which must be checked. He said that duty on import of fruits and vegetables has also been jacked up by Oive percent while taxes on import of cornOlakes, biscuits, bread, pickles, dry fruit juices, ice cream, ketchup, coffee, beverages, mineral water and other items has been increased which is a very good decision. The business leader said that we support move to hike duty on cosmetics, leather items, shoes, fans, sports goods, wooden furniture, arms and ammunition etc. These steps will discourage consumption of many imported items which are already produced locally which will promote local businesses but government needs to include more items in the list, he demanded.
din, Mr. Rizwan and National Bank of Pakistan to hand over the illegally occupied premises to Karachi Chamber within 60 days. The cases against the said three illegal occupants were Oiled by Karachi Chamber for ejectment from KCCI premises which were continuously heard on various dates and the Oinal judgment/ order was issued on April 27, 2017 in favor of Karachi Chamber. President KCCI further informed that in order to bring the wrongdoings of ETB Chairman to Prime Minister’s notice, a detailed letter was issued on 8th March 2017 and copies of the same were sent to Finance Minister Ishaq Dar, Governor Sindh Muhammad Zubair and Chairman ETPB Siddique ul Farooque but nobody bothered to take any action or this letter was deliberately not presented to the Prime Minister, which left no other option but to share the letter with the media after lapse of 4 months in order to acquaint the Prime Minister about what exactly PML-N politicians have been doing, which is not only resulting in intensifying problems for the business and industrial community but is also creating a bad image of PML-N.
Airlines’ profits expected to reach $31.4 billion in 2017 sia Pacific will contribute $7.4b to the industry total. The International Air Transport Association (IATA) expects airlines to report a $31.4 billion profit (up from the previously forecast $29.8 billion) on revenues of $743 billion (up from the previously forecast $736 billion). “This will be another solid year of performance for the airline industry. Demand for both the cargo and passenger business is stronger than expected. Whilst revenues are increasing, earnings are being squeezed by rising fuel, labor and maintenance expenses. Airlines are still well in the black and delivering earnings above their cost of capital. But, compared to last year, there is a dip in profitability,” said Alexandre de Juniac, IATA’s Director General and CEO. –CB Report
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Appraiser Shahadat retires ISLAMABAD: Shahadat Khan, a Pakistan Customs Service officer of BS-17, has retired from the government service on attaining the age of superannuation. The officer, last posted as Appraiser at Model Customs Collectroate of Appraisement-West, Karachi, stood retired from the government service on June 9, 2016.
Friday June 9, 2017
Islamabad cAA not entitled to pay sales tax to Sindh govt: Sc
muhammad Anadil assumes charge as Second Secretary
ISLAMABAD
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upreme Court has upheld the Sindh High Court’s four years old order wherein it had declared that the Civil Aviation Authority (CAA) was not entitled to pay sales tax to the Sindh government under the Sindh Sales Tax on Service Act 2011. A three-judge bench, headed by Justice Mushir Alam and comprising Justice Qazi Faez Isa and Justice Sardar Tariq Masood, gave the verdict while hearing the petition filed by the Sindh government and Sindh Revenue Department. Justice Qazi Faez Isa who authored the 47-page verdict observed that the Constitution is not to be interpreted narrowly or restrictively and advised such approaches should be avoided. “While the provincial legislatures are independent, they must operate within the sphere allotted to them and within their prescribed limit.
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fBR mourns death of young appraising officer Afrasiab he Federal Board of Revenue has expressed deep sorrow over the sad demise of Afrasiab Khan, a BS-16 officer of Customs Department. The officer was born on July 25, 1987 and joined the government services on March 1, 2017. At the time of his death, the officer was posted as Appraising Officer at Model Customs Collectorate Exports, Karachi. The FBR appreciated the dedicated services rendered by the deceased. In expressing its sense of the grief at his death, the Board conveyed its commiseration to the member of the bereaved family, praying, “May his soul rest in eternal peace and may Allah give patience and fortitude to the family members to bear this irreparable loss.” –CB Report
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uhammad Anadil Khan, a BS-18 officer of Inland Revenue Service, has assumed the charge as Second Secretary. The officer, in pursuance of Chief Commissioner-IR, RTO-II, Lahore’s letter No CCIR/RTOII/LHR/14463 dated 17-052017, took the charge of the post of Second Secretary at FBR (HQ), Islamabad on May 25, 2017. 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.
hyderabad customs receives Rs1689.917m M
HYDERABAD
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odel Customs Collectorate generated Rs1689.917million customs duties and taxes during the last week of May 2017 against the set target of Rs1930.98million. Model Customs Collectorate Hyderabad earned Customs Duty (CD), Sales Tax (ST), Federal Excise Duty (FED) and Income Tax (IT) during the above said period. Collectorate received Rs415.281 Customs Duty (CD) against the allocated target of Rs370.78million. Collectorate branch was tasked with the collection target of Rs1.518million against the earmarked Sales Tax of Rs1260.937million. It got Rs1.875million Federal Excise Duty (FED) against the set target of Rs2.2million. It received Rs11.824million Income Tax during the above said period against the target of Rs40million. The major tax sources were Hyderabad Dry Port, Sukkur and Larkana Divisions,
Hyderabad State Warehouse Huffaz Seamless Pipe Industries, Crescent Steel, Omni Polymer Industries, Rema Cooking Oil and Pakistan State Oil.(PSO). Anti-Smuggling Or-
ganization (ASO) also seized nonduty paid goods worth millions of rupees during April-May 2017. Under the supervision of Hyderabad Collector, Akhlaq Ahmad Khattaq,
additional collector Rehmatulah Vistro, deputy collector dry port customs, Mushtaq Shahni, and others, played an important role in revenue collection, ofOicials said.
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Valuation enhancement cases: SHC appellate bench sets aside judgment KARACHI: The Sindh High Court has reserved the judgment pertaining to powers of Director Valuation for increasing customs value in the presence of Valuation Ruling. A SHC appellate bench, comprising Justice Munib Akhtar and Justice Arshad Hussain Khan, reserved the judgment while hearing a number of constitution petitions filed by importers and Special Customs Reference Applications filed by Customs Collector. The petitioners maintains that the Director Valuation of Pakistan Customs has no powers to order collection of customs duty and other taxes on enhanced value and assessment shall be made on the basis of declared value as per section 25 of the Customs Act 1969. The SCRA’s were filed by the department challenging the decision of the Special Customs Appellate Tribunal.
court sends suspect on physical remand booked in misusing pay-order KARACHI
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ustoms Court Judge Syed Faiz Rasool Rashdi has sent a suspect, Muhammad Rafiq I/c WeBOC Collection Counter, OG-II, National Bank of Pakistan, Customs House Branch, Karachi, to Customs Department’s lockup on physical remand who was allegedly involved in misusing pay-order worth Rs 2.3 million. the court also directed the investigation officer to produce him on the next date of hearing along with a progress report. According to the FIR, Customs official received the information that a pay-order number 2626509 dated 03/01/2017 of Rs2.3million was issued by Meezan Bank Limited Karachi into account of M/s NSB Bearing private limited, au-
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thorised importer, was illegally and allegedly deposited into PD Account of FA Corporation, whose owner is accused Faiz Sarwar. According to the prosecution, Muhammad Rafiq was actively involved in this illegal depositing of pay-order. “At the time of deposit of funds into PD Accounts by the NBP, the WeBOC system asks the NTN number of PD Account Holder in which funds are to be deposited. After entering the NTN number by the bank official, the WeBOC system displays the name of the PD account holder. It is the responsibility of functionary of NBP concerned to check the PD account holder’s name displayed by the WeBO system and the name of authorised importer on pay-order.” The FIR revealed that only, if both names are matched, the pay-order should be accepted for PD account deposit otherwise it is not allowed.
Friday June 9, 2017
Karachi
Shc seeks comments from tax authorities on petition filed by pakistan molasses co C
customs tribunal restores licence of m/s Lintaz Industries
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he Sindh High Court (SHC) has issued notices to the tax authorities and deputy attorney general, directing them to file their para-wise comments on a constitutional petition filed by Pakistan Molasses Company (Private) Limited against the impugned demand notice of Rs 17 million for the tax year 2014 issued by the Additional Commissioner Inland Revenue Unit-IV, Zone-II, Large Taxpayers Unit-II, Karachi. A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Nazir Akbar, was hearing the petition. Earlier, counsel for the petitioner stated that it is engaged in the lawful business and never involved in any tax evasion case, however Additional Commissioner Inland Revenue Unit-IV, Zone-II, Large Taxpayers Unit-II, Karachi, passed an order against the petitioner creating a demand of Rs 17 milliom for tax year 2014. According to the petitioner, he moved the Commissioner Inland Revenue Appeals-IV and filed an
application along with a stay application which is still pending for disposal. However during such pending appeal, petitioner is being threatened by high officials of the tax department. Citing to Secretary Revenue Division, Commissioner Inland Revenue Appeals-IV, Additional Commissioner Inland Revenue Unit-IV,
Zone-II, Large Taxpayers Unit-II, Karachi, and others as respondents, petitioner pleaded with the court to kindly restrain them from taking any coercive action till the final decision of the appeal. He also pleaded with the court to direct an appellate forum to decide its appeal within a reasonable period.
ustoms Appellate Tribunal Bench-III directed the Customs Department to restore applicant’s export oriented unit (EOU) licence from the date of its suspension and allow him to start his production and export in terms of EOU Rules of 2008 on an appeal filed by M/s Lintaz Industries. A two-member bench, headed by Justice (R) Malik Manzoor Hussain, Chairman/Member Judicial and Zulfiqar A. Kazmi, Member/Technical-I (Karachi) was hearing the appeal. Earlier, counsel for the applicant stated in his customs appeal that it was granted that licence on 30/10/2010 for operating an export oriented unit under SRO 327(1)/2008 dated 29/03/2008 which authorized the applicant to import plant, machinery, equipment and apparatus including capital goods will be used solely within the limits of the EOU besides importation of certain raw material via dyes, pigments, chemicals, yarn, fabrics, threads, garments and so on. He argued that applicant imported 12 consignments of machinery/spares and 59 consignments of raw materials under the said rules, however Tax Department alleged that he imported said consignments without payment of customs duty therefore a show cause notice.
Dg Valuation revises customs values of telephones
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KARACHI
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he Directorate General of Customs Valuation has revised the customs values of telephones through Valuation Ruling No 1172/2017 under Section 25A of the Customs Act, 1969. According to the details, there were many complaints regarding under invoicing in import of telephone sets/ PABX. The Directorate General examined the clearance record and found differences in values declared at various customs stations, hence it undertook an exercise to determine the customs
values of telephone sets / PABX, 25A of the Customs Act, 1969, after due process. Meetings with stakeholders were held on 17-04-2017 and 19-05-2017. Importers had been requested to furnish invoices of imports during last three months showing factual value. Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax Invoices issued during last four months show-
ing the difference in price (excluding duty and taxes) to substantiate that the beneOit of difference in price is passed on to the local buyers. No documents were submitted by anyone. Meetings were also under representative. Resultantly, this Directorate General decided to determine customs values after comprehensive exercise of Telephones/PABX sector. Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs values of Telephone Sets/PABX. Transaction value method provided in Section 25 (1) was found inapplicable owing to wide variation in the values being declared to the customs. Identical / sim-
ilar goods value methods provided in Section 25 (5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied upon due to wide variation in declared values of subject goods. 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 computed 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.
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Customs catch homing pigeon with backpack Friday June 9, 2017
World
BAGHDAD: A homing pigeon with a tiny backpack full of drugs, presumably on his way to a ripper party, was apprehended by Kuwaiti customs agents when he crossed the border from Iraq earlier this week. Customs agents in Kuwait have caught a homing pigeon crossing the border form Iraq with a tiny backpack filled with pills. According to Al Arabiya, the little guy was caught at the Kuwaiti border with 178 pills strapped to his back. Using homing pigeons to traffic drugs is nothing new, but this little backpack, in particular, is an adorable method. A dull grey colour was even chosen, obviously to blend in with the pigeon’s plumage.
france to quash prison terms uS $6t bill for America’s longest war unpaid for cannabis users KABUL
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rance will introduce a law by year’s end that will end prison terms for cannabis use, although consuming the drug will remain a criminal offence, a government spokesman said. French President Emmanuel Macron vowed to reform laws on cannabis use in his election campaign manifesto. Currently offenders can face up to a year in jail plus a Oine of up to €3,750. “Last year, 180,000 people were found to be in violation of drug laws. On average these cases take up six hours of police time and the same amount for the presiding magistrate,” government spokesman Christophe Castaner said. “Is the system effective?” No,” he added. “What is important today is to be effective, and above all to free up time for our police so they can focus more on essential matters.”
gcc construction projects valued at $1 trillion he value of ongoing urban construction projects across the GCC has exceeded the $1 trillion mark, according to new research. New research commissioned by Middle East Stone and compiled by data analysts BNC found that projects in the Gulf region are worth a combined $1,097.9 billion, with buildings and urban developments accounting for more than half of that sum ($745.1 billion). Across the GCC, more than 12,200 buildings are under construction ($448bn value), with a further 204 urban megaprojects ($297bn) also under way. The report said that of 21 percent of planned projects in the GCC are on hold, valued at $494.9 billion. The Middle East Stone event organisers said he Gulf is currently responsible for 92% of all stone-heavy urban construction projects across the whole of the Middle East and North Africa. –CB Report
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Castaner stressed however that the new measures will not amount to decriminalisation of cannabis use, recalling that Macron had no wish to reopen that debate “because consuming drugs remains serious and is dangerous to health”. Macron’s predecessor, Socialist Francois Hollande had refused to consider decriminalisation, a fact which became a source of friction within his own
party. The move to simplify the judicial procedure was welcomed by police unions. “It’s a good idea that takes reality into account,” argued Patrice Ribeiro, of the police ofOicers union. “Most policemen who arrest a user tell him to throw the joint away and then let them move on”. However the government initiative received a less enthusiastic response among magistrates.
kuwait places travel ban on 20 real estate execs for alleged fraud
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travel ban has been placed on 20 executives from a real estate company in Kuwait after they tricked 3,000 citizens and residents into investing in property outside of Kuwait, according to general counsel attorney Dhirar Al-Asousi. The suspects, including various Arab nationals and a Kuwaiti woman believed to be the ‘owner’ of the company, convinced victims to pay as much as $100m for the property, reported Al-
Jarida daily. Judicial sources said the defendants are facing further investigation. Meanwhile, Kuwait Finance House (KFH), the country’s biggest Islamic lender, reported a 20.5 percent rise in third-quarter net proOit according to a statement on Wednesday, as income from Oinance, investments and fees rose and expenses dipped. Net proOit rose to 52.3 million dinars ($172.9 million) in the three months to Sept. 30. –CB Report
he enormous Oigure reOlects not just the cost of Oighting – like guns, trucks and fuel – but also the long-term cost of providing medical care and disability compensation for decades beyond the end of the conOlict. Consider the fact that beneOits for World War I veterans didn’t peak until 1969. For World War II veterans, the peak came in 1986. Payments for Vietnam-era vets are still climbing. The high rates of injuries and increased survival rates in Iraq and Afghanistan mean that over half the 2.5 million who served there suffered some degree of disability. Their health care and disability beneOits alone will easily cost $1 trillion in coming decades. But instead of facing up to these huge costs, we have charged them to
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the national credit card. This means that our children will be forced to pay the bill for the wars started by our generation. Unless we set aside money today, it is likely that young people now Oighting in Afghanistan will be shortchanged in the future just when they most need medical care and beneOits. While most Americans are keen to “support our troops,” we aren’t currently shouldering the Oinancial or the physical burden of our nation’s warfare. Except for a short period between the two world wars, the percentage of the general population now serving in the U.S. armed forces is at its lowest level ever. What’s more, the war in Afghanistan barely features on our front pages. During the past two years it has not even made it into the top 10 news stories. There is not much pain in our pocketbooks either. In past wars, taxpayers were forced to cover some of the extra spending. During Vietnam, marginal tax rates for the top 1 percent of earners were hiked to 77 percent.
taiwan’s economy expands in Q1
aiwan’s economy continued to expand in the Oirst quarter, the latest preliminary estimate from the Directorate General of Budget, Accounting & Statistics (DGBAS) showed. Real gross domestic product grew 2.6 percent year-on-year in the Oirst quarter, which was the fourth straight quarter of expansion. The annual growth was revised slightly from the advance estimate of 2.56 percent published on April 28. Nonetheless, it was slower than the revised 2.79 percent growth seen in the fourth quarter. On a sequential basis, the real
growth was 3.82 percent instead of 2.93 percent in the first quarter. Gross capital formation expanded by 7.68 annually, following the 6.73 percent growth in the previous quarter, mainly due to an increase in machinery and equipment investment. Meanwhile, real exports of goods and services climbed 7.36 percent, which was mainly driven by the foreign demand for parts of electronic products. Imports increased 7.67 percent. For 2017, the agency forecast 2.05 percent economic growth. And CPI for 2017 is expected to increase 0.95 percent. –CB Report
Swiss economy might not outpace germany for a while
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f the Swiss economic growth is still left in the shade by Germany this week, its central bank knows exactly why. Two-and-a-half years after suffering an exchange-rate shock that made its exports even more expensive, Switzerland has yet to rediscover
its knack of outperforming neighboring Germany. While the two economies boast signiOicant similarities, prompting the Swiss to dub their northern neighbor “the big canton,” forecasts suggest it will only be in 2018 that the smaller country can pull ahead once more. Switzerland’s weaker momentum will probably be evident again on Thursday, when Oirstquarter gross domestic product Oig-
ures are due. Economists forecast growth of 0.5 percent for the three months through the end of March, falling short of Germany’s 0.6 percent. The strong franc is a problem “we’ve got to get to grips with,” said Juerg Werner, chief executive officer of Metall Zug AG, which makes products ranging from washing machines to wire-cutting devices and hospital sterilization equip-
ment. “It remains quite difficult, but that is the challenge for Switzerland.” Momentum took a hit when the franc surged against the euro in early 2015 after the Swiss National Bank scrapped its cap with the single currency. Profits suffered and companies responded by slashing input costs and jobs, while boosting automation and even moving production abroad.
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Consumer spending in Malaysia to increase 5.8% in 2017 KUALA LUMPUR: It will grow at an annual average of 5.3% between 2017-2021. BMI Research reported that consumer spending in Malaysia is set to increase. The rise will be brought about the increasing disposable income. Real household spending growth in Malaysia will continue to expand the medium term. However, it will be modest on the back of an uptick in inflation and slightly weaker currency. Household spending will become more dynamic over the medium term as the share of non-essential spending rises. BMI foresees household spending real to grow at an annual average of 5.3% between 2017-2021. In 2017 we project a y-o-y increase of 5.8%.
Border guards foil drug smuggling attempt from Syria order Guards foiled , an attempt to smuggle an amount of drugs by two people who tried to cross the border from Syria into Jordan, a military source at the General Headquarters of the Jordan Armed ForcesArab Army said. The source said that the Border Guards applied the rule of engagement taken in such cases, killing both of the infiltrators. Army personnel seized some 50,000 Tramadol pills with the infiltrators and the seized were handed over to the concerned authorities. Meanwhile, Iranian coast guards managed to seize nearly 700 kilograms of heroin en route to Jordan, the commander of the border guard headquarters of the southeastern province of Sistan and Balouchestan announced. In a successful operation after intense intelligence work, the brave coast guards thwarted a sinister scheme by smugglers to transit the illicit drugs from Bandar Abbas to Jordan by a ship and a boat, Brigadier General Saeed Komeili said. –CB Report
World Customs
Bangladesh customs hit gold bonanza in unlikely places
anufacturing activity in Singapore picked up at a slower pace in May, although it continued its expansion trend for the ninth straight month, based on the latest data released by the Singapore Institute of Purchasing & Materials Management (SIPMM). The purchasing managers’ index (PMI) reading in May was 50.8, a tad slower from April by 0.3 of a point. The employment indicator showed contraction, while factory output, new orders, new exports, inventory level and input prices recorded slower growth rates. Stocks of finished goods, imports, supplier deliveries and order backlog registered faster pace of expansion. Electronics sector PMI rose 0.8 point from April to post a faster rate of expansion at 52.4 a record high since October 2014. –CB Report
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Spain praises economic cooperation with Russia n light of this,” he stressed, “the work of the joint Russian-Spanish business Council should be an important tool for the development of not only large but also small and medium-sized businesses. Thus, we will be better able to use opportunities for open dialogue, cooperation in economy and trade,“ he added, going on to announce plans to continue strengthening mutual cooperation between the two countries in order to “better exploit the potential of [their] economic activities.” In turn, Vice-President of the Confederation of entrepreneurial organizations of Spain, Joaquin Guay de Montella noted that for Spanish companies it is important to understand what measures the authorities of the Russian Federation will take for the development of trade and other bilateral relations between the two countries. “We, in turn, have undertaken measures aimed at simplifying customs procedures, reducing existing barriers to trade. For example, simplifying the procedure of verification and monitoring by Spanish customs these are all important incentives to increase the presence of Spanish business in the Russian market,” said Montella. He also added that Russia is an attractive market for Spain not only because of its geographical features, but also due to the fact that their economies “complement each other”. –CB Report
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manufacturing pmI posts slower expansion
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ohammad Belal at Chittagong airport carrying some surprising excess baggage. Under questioning, the 37-year-old admitted he had a dozen chunks of gold weighing 1.4 kilograms, or three pounds, stashed in his rectum. Gold smuggling in Bangladesh is at a record high, officials say, with the country emerging as a major route into neighbouring India, which has slapped high taxes on gold imports. Authorities have
seized 1.1 tonnes of the precious metal at airports in the past three years an unprecedented haul. Investigators believe it is the tip of a golden iceberg. They say it is bought by jewellers or smuggled into India, the world’s biggest buyer of gold, and is also bankrolling a booming trade in drugs and illegal cattle. As monitoring has been stepped up, barely a day passes without another seizure. Detectives on Wednesday discovered 13 stone-sized gold tablets hidden in the wig of a 45year-man as he passed through Dhaka’s international airport. Smugglers are increasingly resorting to more drastic methods to
evade detection, officials say. “Hiding gold bars in electronic appliances, wheelchairs or in toys has become old tactics. Now they are increasingly using their rectum to carry gold,” Moinul Khan, Bangladesh’s customs intelligence chief, told AFP. “We give them a lungi (cloth worn by men around the waist) and a polythene bag, ask them to defecate and there comes gold from the anus. Some women were even found having carried gold in their vaginas.” More than 100 people mostly Bangladeshi migrant workers have been arrested since 2014 for gold smuggling at the country’s three international airports, police say.
Nepal eyes fastest economic growth rate in 23 years KHATMANDU
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epal said its economic growth for the fiscal year ending in mid-July was projected to be the highest in 23 years on the back of improved power supplies, agricultural production and higher spending on reconstruction work after earthquakes. Finance Minister Krishna Bahadur Mahara said the
economy would grow by 6.9 percent in the year to July 15, the highest since 1993/94 – also because of the increased capital investment following the end of border disruptions with India in late 2015 and into 2016 which resulted in crippling fuel shortages. The forecast compares with no growth last year, following earthquakes that killed 9,000 people and destroyed about 1 million homes, roads and other infrastructure in
2015. “The higher growth projection is due to government policies to revive economic activities by addressing the negative impacts of these adverse factors,” Mahara told parliament while unveiling a $12.4 billion annual budget. Nepal has virtually ended long power cuts of up to 20 hours through increased electricity imports from India, distribution management and theft control. Shortage of power had hit industries and busi-
nesses for several years. “Fewer strikes have contributed to increased industrial production and private sector investment which in turn helped achieve a higher growth rate despite the political instability,” Deependra Bahadur Kshetry, commentator and a former central bank governor, said. Nepal, wedged between China and India, is plagued by political instability since it abolished 239-year-old monarchy in 2008.
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ANF recovers heroin from passenger at Lahore airport Friday June 9, 2017
Lahore
LAHORE: The Anti-Narcotics Force (ANF) has recovered one kilogramme heroin from a passenger who about to board on a Kuwait-bound PIA flight at Lahore airport. The ANF, on a tipoff, carried out the raid in the early hours of Friday. T he passenger Mudassar Mustafa was carrying at least one kilogramme heroin in his bag, that was recovered by the ANF. The matter is being investigated by the agencies concerned and the culprit has been shifted to an unknown location for further investigation.
customs court asks probe team to complete challan of gold smuggling case LAHORE
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pecial Federal Court of Customs Taxation and AntiSmuggling has asked the investigation team of Pakistan Customs to complete an investigation challan of the case of 14 kg gold smuggling. Earlier, the court 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. Accused Muhammad Riaz is the main accused in the smuggling of the said gold into Dubai. Earlier, the customs authorities have arrested two female suspects
customs preventive submits challan against smart phones smuggler he Special Federal Court of Customs Taxation and Anti-Smuggling has received complete investigation challan of a case filed against a suspect who was arrested by the customs authorities from Allama Iqbal International airport while making an attempt to smuggle cell phones from China to Lahore. Sources told Customs Today that Naveed Bhatti was arrested by the Customs Preventive team after recovering 170 android mobile phones of assorted types from his luggage. The passenger was coming from China. As per the sources, on suspicion, the customs authorities intercepted Naveed Bhatti while he was using Green Channel and asked him to produce legal documents regarding import of cell phones but he failed to produce any legal documents regarding possession of these cell phones. –CB Report
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involved in smuggling of 14 kg gold and currency from Multan International Airport. Customs authorities had recovered 14 kg gold which was worn by both females in their hands and feet in form of bangles (Kara) and anklets (Pazaib) along with 39,000 Saudi riyals and United Arab Emirates Dirham. Meanwhile, Lawyers in the special federal court of customs taxation and antismuggling boycotted the court proceedings on the second day against a clash between a civil judge and lawyers. A Civil Judge Waseem Ahmad was holding the proceedings at his court at the LDA Building when a group of lawyers, led by Aqeel advocate, entered into the courtroom and misbehaved with the judge and his staff. On Wednesday, all the civil and sessions judges of the lower courts stopped courts’ proceedings in protest after a group of lawyers manhandled one of their colleagues.
customs Appraisement achieves Rs70 billion collection target
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he Customs Appraisement has achieved monthly revenue target of Rs70 billion set for the month of May, 2017. “We collected Rs29 billion as customs duty, which is 40 percent higher compared to the collection in May 2016,” Collector Jamil Nasir said. Jamil said that his collectorate had also met its revenue target in the previous months and this consistent increase in revenue was made possible only because of the initiatives taken by the department to optimise revenue collection. Nasir maintained that collection also increases with a decrease in the cost of doing business at the dry ports of Lahore. “The cost was reduced through streamlining of clearance procedures and restructuring of various Sections and branches of the collectorate,” he added.
The collector observed that a quantum jump in customs duty collection during May, 2017 was a clear indication of the fact that the business-friendly measures aimed at trade facilitation are delivering. “I am conOident that the collectorate will not only achieve its tar-
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get in the month of June but also reduce the cost of doing business further,” Nasir said and added the facilitation measures taken by his team will hopefully attract the leading manufacturers and importers for customs clearance from the dry ports of Lahore.
Reducing cD on smartphones to ensure evolution NAB arrests former customs appraiser involved in embezzlement educing customs duty on withholding tax on mobile phones
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he National Accountability Bureau (NAB) arrested a former customs official from Lahore on the charge of embezzlement and making assets through unfair means on Thursday. Sources told Customs Today that NAB has booked a customs ofOicer due to his alleged involvement in corruption in Defense Housing Authority Lahore. Sources said that Iftikhar Cheema was appointed as principal appraiser in Sialkot and than in Lahore. He was involved in making assets through un-
fair means. Sources said that Iftikhar Cheema has property worth millions of rupees in posh areas of Lahore. During his appointment in Lahore and Sialkot, he purchased a number of plots that are more than his income. He has a plot in DHA Lahore worth more than Rs 500 million. On the other hand, NAB has also detected his plot in Johar Town worth more than Rs 20 million. Another property adjacent to Johar Town has also detected been by the NAB which is almost 12 kanals worth more than Rs 200 million. –CB Report
smartphones in the next Oiscal year 2017-18 is an incentive of the incumbent government to promote the usage of the smartphone which would ensure a new era of evolution in the country. Talking to media persons a spokesman of PTA said that the step has been taken to increase the uptake of smartphones in the country. He said with the inclusion of 3G and 4G technology in Pakistan, this sector has seen a surprising boom. Owing to boom in the smartphones market and to attract foreign brands, the government has reduced
from 14 percent. Moreover, customs duty on smartphone sets will be cut to Rs 650 per set. The government has reduced taxes on certain kind of smart phones, the budget document has claimed. According to details, one category for which import duty was Rs. 1,000 has been reduced to Rs. 650.It must be mentioned that there were three categories of handsets as feature phone import duty: Rs. 300, low end smartphone import duty: Rs. 650 (previously it was Rs. 1,000) and high end smartphone -import duty: Rs. 1,500. –CB Report
fto adjourns hearing of case filed by m/s Asif flour mills
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LAHORE
SAJID NAWAZ
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he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Oiled by M/s Asif Flour Mills against the Regional Tax OfOice (RTO) Gujranwala until the next date. According to the details, FTO Ad-
visor Mian Munawar Ghafoor heard the case FTO-LHR0000124/17 Oiled by Bilal Naseer Cheema, M/s Asif Flour Mills. The counsel for the appellant argued that the RTO had failed to release the sales tax refund to the appellant for the last two years. He said that RTO Gujranwala collected excessive tax from the company during the last two years. The petitioner approached the ofOi-
cials concerned several times for issuance of the refunds, but the RTO ofOicials failed to clear the refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO Gujranwala to clear the refund claims. The counsel further said that the delay in issuance of refunds put
burden on the taxpayers, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO argued that the appellant has not submitted all record in the ofOice for claiming refunds. If appellant provides accurate record, the RTO will issue the refunds after proper assessment, he added.
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New port boosts Djibouti’s dream to be maritime hub WASHIONGTON: 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).
kandla port to generate 200 mW solar, wind energy he Ministry of Shipping is exploring the possibility of setting up 200 MW solar and wind energy projects on 1.5 lakh acres of land at Kandla Port in Gujarat, Union Minister for Shipping and Transport Nitin Gadkari said here today (Tuesday). The land is low-cost and economically viable for investment in solar and wind energy projects from which the energy can then be wheeled through the national grid. “The cost of solar energy per unit has dropped to Rs 2.63 per unit and capital cost has also come down, which will help all ports cumulatively save Rs 600-700 crore annually,”Gadkari said. He was addressing a conclave on ‘Green Ports and Oil Spill Management – 2017’in Mumbai organised by Indian Federation of Green Energy (IFGE) along with the Ministry of Shipping, Sagarmala, Mumbai Port Trust (MbPT), Indian
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Ports Association (IPA) and Shipping Corporation of India (SCI). Besides the port sector, Gadkari said Sagarmala will have 14 industrial clusters with a cumulative investment of Rs 12 lakh crores as part of a port-led development that will also be cost effective and economically viable by consuming green power. In his welcome remarks, IPA and MbPT Chairman Sanjay Bhatia said that keeping in mind the need for eco-friendly sustainable options, the conclave would deliberate on future green energy plans for ports as also standard operating procedure in case of oil spillage. He said that at various international summits including the Earth Summit at Rio, to the recent Paris Convention, India has offered a commitment along with several countries located between the Tropic of Cancer and Tropic of Capricorn to produce green energy. –CB Report
Ports & Shipping
Friday June 9, 2017
port’s 26.677m tonne cargo handled Adani revenues rise at port Qasim during 9 months A ISLAMABAD
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he current year has witnessed handling of 26.677 million ton of total cargo at Port Qasim so far as against corresponding period of previous year, showing 12.2 per cent increase. This growth is attributed to increased handling of Petroleum Oil Lubricants (POL) imports, chemicals, containerized cargo, LPG and LNG. Out of 26.677 million ton, the liquid cargo was 12.639 million ton (47.4 per cent), containerized cargo was 10.704 million ton (40.1 per cent) and remaining 3.334 million ton (12.5 per cent) was miscellaneous types of dry bulk/break bulk cargo. OfOicial sources on Tuesday said Port Qasim Authority has handled 0.871 million Twenty-Feet Equivalent Units (TEUS) of container trafOic during Oirst nine months of this Oiscal year, the growth in container trafOic during nine months is 7 per cent over same
period of 2015-16. The volume of import cargo during July-March 2016-17 stood at 21.604 million ton, showing 19.4 per cent higher than 18.092 million ton handled during corresponding period. The exports handled were 5.072 million ton during current year 2016-17 as compared to 5.677 million ton handled during corresponding period of 2015-16, registering a decline of 10.6percent. Meanwhile, Brisk shipping activity was observed at Port Qasim where
seven ships C.V MSC Mykonos, C.V MSC Aysa, C.V CMA CGM Tosca, M.V Celebration, M.V Frontier Leader and MTM Singapore, M.T Chemroad Saruna carrying Containers, 209 tonnes General Cargo, 63,835 tonnes Canola seeds 19,476 tonnes Phosphoric Acid and 13.000 tonnes Palm oil were allotted berths at Qasim International Container Terminal, Multi-Purpose Terminal, Grain & Fertilizer Terminal, Engro Vopak Terminal and Liquid Cargo Terminal respectively on Monday.
dani Ports and Special Economic Zone, one of India’s leading port developers, has just announced impressive operational and financial results for the financial year ending March 31st 2017. Revenues were up by 19% compared to the 2016 financial year, while after-tax profits jumped by 35%. During the last financial year, the group’s ports handled 169 million tonnes of cargo, a growth rate of 11% compared with the previous 12 months. This is well above the average for all Indian ports of 8%. Adani Ports’ container business in particular performed exceptionally well last year, passing 4 million teu for the first time. This represents a growth rate of 27% year-on-year, outperforming the combined Indian ports growth rate of 10%. Karan Adani, group chief executive, described the results as “one of our best all round performances.” He continued: “Our strategy to diversify our cargo mix and focus on high value cargo continues to yield positive results. Our EBITDA margins have been improving year on year and this is likely to continue given our focus on operational efficiencies, technology and cost control.” –CB Report
odisha to get two new ports O
BHUBANESWAR
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disha government has established at least two non-major ports during its 17-years in ofOice and work for two other ports are in progress, Commerce and transport minister Nrusingha Charan Sahu said today. Sahu said this on the occasion of Patnaiks three years in ofOice. Stating that the state government has signed MoUs with Oive different companies for setting up non-major ports, Sahu said that two ports at Gopalpur in Ganjam district and Dhamra port in Bhadrak district have been operational since 2013 and 2011 respectively. While one company withdrew from the agreement for setting up of the port at Chudamani, work is in progress for construction of two ports at Subarnarekha in Balasore district and Astarang in Puri district,
the minister said adding that the state government has identiOied 14 potential sites for developing the non-major ports. The two ports at Dhamra and Gopalpur have handled 86.4 metric million tons of cargo and contributed direct revenue share of Rs 168.05 crore to the state exchequer in the last three years, Sahu said. “Cargo handling capacity of these two ports is being enhanced to more than double of the present capacity,” Sahu said adding that Subarnarekha mouth port is being developed with the help of a BOST partner. The government have invited interested parties to set up a riverine port on the Mahanadi river mouth. Simultaneously, the government is pushing the Centre to include projects in the Sagarmala initiative so that the state gets its due share of the developmental works, he said. Sahu said that though railway is not under the state subject, still the
state government have been pushing for unique ways to increase rail connectivity. At the time of the formation of the BJD government in 2000, seven districts like Kendrapara, Nayagarh, Kandhamal, Boudh, Deogarh, Nabarangpur and Malkangiri were without rail connectivity. Also Subarnapur had marginal connectivity at the periphery of the district, Sahu said. He said that the state government have come forward with unique scheme of giving land for free or at concessional rate. It also directly contributed to the construction cost. Thus, new works were sanctioned by the Railways. Khura Road-Bolangir, HaridaspurParadip,Angul-Sukinda, JeyporeMalkangiri, Jeypore-Nabarangpur and Talcher-Bimalagarh lines will provide connectivity to the unconnected districts, Sahu said. “To promote railway works, the state government have also waived 100 per
cent of stamp duty and registration fee on all the 18 railway projects, a rare achievement,” Sahu claimed. Meanwhile, The Port of Townsville has predicted the upgrade will reduce carbon emissions by removing 8230 B-double trucks off road highways between Brisbane and Townsville each year. The business case for the channel upgrade has been sent to Treasurer Curtis Pitt and Ports Minister Mark Bailey for consideration. Port of Townsville chief executive ofOicer Ranee Crosby said the expansion project had been in the planning phase for more than 10 years. “The channel capacity upgrade is a critical project to ensure the future growth of North Queensland as well as the competitiveness and via- bility of the Townsville Port,” she said. “The bottom line is ships are getting bigger and Townsville’s channel is too narrow to accommodate that growth.
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ASO confiscates 3040 kg of vehicles’ rims valued Rs1.7m ISLAMABAD: Anti-Smuggling Organization (ASO) Islamabad seized 3040 kilogram of vehicles’ rims along with an offending vehicle (Vehicle used for carrying smuggled goods) Mazda worth Rs1.7million on Wednesday from Pirwadhai (Rawalpindi). According to ASO Islamabad, a tip-off was shared by Collector Model Customs Collectorate Islamabad Dr. Arslan. The ASO squad set up a picked at Pirwadhi and intercepted a Mazda truck with registration No: U-3266. After the checking, the ASO staff found a huge quantity of rims weighed 3040 kilogram.
Friday, June 9, 2017
CUSTOMS BULLETIN
fBR chairman refutes reports of bringing 3.8m more people under tax net ISLAMABAD cuStomS BuLLetIN RepoRt www.customsbulletin.com
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ederal Board of Revenue (FBR) Chairman Dr Muhammad Irshad has refuted the reports of bringing 3.8 million more people under tax net. “No in fact it was a myth and no such data has been provided by National Database and Registration Authority (Nadra) to FBR,” he told the Senate Standing Committee on Finance. The meeting of the committee was held under the chairmanship of Senator Saleem Mandviwala to discuss Finance Bill 2017-18, clause by clause. Proceeding on the bill, the committee also directed to take additional measures to expand tax net across the country. The FBR chairman said the Board was itself conducting survey to identify the well off individuals and companies to bring them under the tax net. Furthermore, the FBR chairman informed that the people who identify such non-Oilers would also be rewarded. Dr Muhammad Irshaad informed the committee that the board was planning to establish a directorate within FBR to broaden tax net. Meanwhile regarding Benami transaction, Senator Azam Swati said the
FBR should launch an awareness campaign regarding consequences of Benami transaction and apprehend
such persons to discourage the Benami transaction. Moreover, the committee was informed that during last
year, total tax collection from real estate sector stood at Rs15 billion. The meeting was attended by Senators
Talha Mehmood, Ayesha Raza Farooq, Mohsin Aziz, Saud Majeed and Osman Saifullah Khan.
court directs Io to submit charge sheet against owner of NDp vehicle KARACHI
m B RANA
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he Customs Court Judge Syed Faiz Rasool Rashdi directed investigation officer to complete investigations and submit charge sheet against accused Syed Tahir Abbas, who was booked in nonduty paid/ smuggled Toyota Hi-Lux Surf and allegedly involved in tax evading of
Rs70,27,883. During the hearing, investigation officer informed the court that Anti Smuggling Organization, had found the Toyota Hi-Lux Surf parked near Electronic Market, Saddar. The accused introduced himself as a owner to the visiting customs team, who was asked to produce the documents to substantiate the legal possession/importation of the said vehicle, to which he shows a Certificate of Registration bearing no:039278 of Federal Capital Islamabad showing detail of vehicle as Toyota Hilux Surf, Pick-up,
registration no: JK-096, chassis no: VZN185-9004482, engine no: KZ-04170314, model 1997 registered in the name of Wali Khan of district Janobi Waziristan. However, Syed Tahir Abbas, failed to produce any document to substantiate the lawful import/procurement of the mentioned vehicle. He further informed the court that after the formalities, said vehicle was taken into possession for investigation and production of documents and customs official asked concerned sections for verification of the import status
of the vehicle with the help of chassis number as apparent from the registration book. According to the prosecution, during the investigation, forensic test report no: AIG/ FD/ Veh/ OR/ 158/2017 received from AIG Police Forensic Division Sindh, conformed that the piece of present chassis frame bearing serial number (VZN185-9004482) is wielded and replaced at the site of original chassis number. It also stated that the M/s PRAL Customs, User Support Group, Customs House, Karachi, confirmed that records of im-
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
ports of vehicle bearing chassis No: VZN185-9004482 not found in the system while the Excise and Taxation Office, Motor Registering Authority, Islamabad, does not provide any response. After his arguments, court directed investigation officer to arrest above mentioned accused and submit charge sheet against him on next date of hearing. The FIR claimed that the vehicle has been seized for violating Section 2(s) and 178 of Customs Act, 1969 punishable under clause (8) and (89) of Section 156(I) ibid.