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Karachi, Thu March 30, 2017

ISLAMABAD

M ARSHAD

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he Federal Board of Revenue (FBR) has incurred millions of rupees loss due to tax exemptions granted to the Federally Administered Tribal Area (FATA) under different heads, sources said.

The income tax,

sales tax and customs duty exemptions have been granted by different governments in different tenures, they added.

“The imports worth Rs 66 million involving exemption of customs duty to the tune of Rs 2 million have been affected from July 2016 to February, 2017 alone,” sources at the FBR told Customs Today.

The sources said that the profits or gains derived by taxpayers from Khyber Pakhtunkhwa,

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FATA and Provincially Administered Tribal Area (PATA), affected by war on terror, were granted tax exemptions for three year starting from the tax year 2010 through insertion of clause 126-F, Part-I of the Second Schedule to the Income Tax Ordinance. Under this concession, the sources added that people residing in these areas were exempted from income tax which casts negative impact on the revenue collection of the FBR.

Islamabad Customs earns Rs33m thru auction of vehicles & goods

Coal importers, exporters demand entry of stranded trucks into Afghanistan

CM Shehbaz takes notice of increase in prices of essential items

ASO seizes non-duty paid Honda Civic, Vitz from Gulberg, Shalimar Town

Customs Preventive impounds worth Rs226.665m more goods & vehicles

The Islamabad Customs Auction Cell earned Rs33million through auction | See pAge 02 |

Thetradercommunity,dealinginimport andexportofcoal,hasdemandedthegovt | See pAge 03 |

CMtooknoticeofincreaseinpricesofessential items and directed Provincial Cabinet | See pAge 04 |

Customs ASO confiscated two NDP vehicles from Gulberg and ShalimarTown | See pAge 14 |

The Preventive Division of MCC impounded smuggled goods and vehicles | See pAge 16 |

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Customs Tribunal dismisses reference filed against FBR field offices Thursday, March 30, 2017

National

ISLAMABAD: Customs Appellate Tribunal dismissed Haq Nawaz’s customs reference filed against field office of Federal Board of Revenue for non-prosecution.

Customs Appellate Tribunal’s Single Bench comprising of Member, Syed Muhammad Anwar heard the cases M/S Lucky Enterprises and Haq Nawaz’s tax matters.

The bench dismissed Nawaz’s reference while adjourned hearing on M/S Lucky Enterprises case for next week. Both of these cases had been filed during 2016.

M/S Lucky Enterprises had filed the case against MCC. It had challenged a customs duty assessment sustained by the adjudication.

customs earns Rs33 million thru auction of vehicles & goods

SIALKOT

ISLAMABAD

ZAfAR MALik

tARiQ DeRYA

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he Punjab government has restored and revived the Cutlery Institute of Pakistan after its four-year long closure at Wazirabad, which would restart regular functioning in April 01, 2017 under the joint supervision of Punjab Skill Development Fund (PSDF) and All Pakistan Cutlery Association. In 2001, the government had established this Cutlery Institute at Wazirabad with total cost of Rs.120 million for developing the cutlery industry in Wazirabad and Sialkot sixteen years ago. But, it was closed down by the government due to the lacked proper mechanism for running this institute. According to the details, the Punjab Skill Development Fund (PSDF) held detailed negotiations with the All Pakistan Cutlery Association and restored/ revived Cutlery Institute of Pakistan Incharge Development Programme Punjab Skill Development Fund (PSDF) Sehar Nadeem and Chairman All Pakistan Cutlery Association Muhammad Kamran Bhutta signed an agreement, in this regard. She said that the PSDF has also released a special grant of Rs. 5.6 million to the affairs of this Institute amicably, where the PSDF would also start short term training courses of computer designing.

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he Islamabad Customs Auction Cell earned Rs33million through auction of non-duty paid vehicles and smuggled goods held at the Customs Warehouse G11 Islamabad at 11:00 am. The customs presented 32 smuggled vehicles and 32 lots of miscellaneous goods for auction. The process of auction was supervised by Deputy Collector Aniqa Afzal while people from Rawalpindi and Islamabad participated in the public auction.

Out of 32 vehicles, 28 vehicles were auctioned off for Rs28.3million while customs earned Rs4.7million through the auction of various seized items. OfTicials said all the bidders, who won the bids, deposited 25 percent of the total amount into customs’ account on the spot. The bidders also paid 10 percent Income Tax and submitted their CNICs to the auction authorities while the bidders will have to pay remaining amount within seven working days.

This was the 5th auction held during Tirst eight months of Tinancial year 2016-17. The Islamabad Customs presented Mercedes-Benz (Bullet proof ), Renault Recovery Truck, Toyota Corolla, Yamaha Motor bikes, Toyota Land Cruiser, Mini Pajero, Toyota Double Cabin, Nissan Single Cabin, Mitsubishi Truck, Re-

punjab govt restores cutlery institute wazirabad after four years

nault Megan, Toyota Hilux, Mercedes-Benz Ambulance, Toyota Carina, Honda Accord, Mitsubishi Gallant, Nissan X-Trail Comfort and Nissan Sunny whereas the seized smuggled goods comprised tea, auto spare parts, tyres and tubes, food grains and cosmetics.

Meanwhile, The Islamabad Dry Port (IDP) entertained 1832 Goods

Declarations (GDs) and processed 1983 dutiable containers of imported items during eight months (July to February) FY2016-17. According to Assistant Collector Amanat Khan, Tigures of dutiable containers and quantity of Tiled GDs through IDP showed satisfactory business activity at the IDP. During the month of February, the IDP en-

tertained 256 dutiable GDs whereas 212 were processed in January and it entertained 237 GDs in December and 273 GDs were entertained at IDP in November during FY2016-17.

About 211 GDs were processed in October whereas 202 GDs were Tiled in September and 257 were Tiled in August whereas 184 GDs were entertained in July FY16-17.

govt to reduce fiscal deficit to 3.5 % of gDp by 2018-19 T

ISLAMABAD

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he government’s concerted efforts have helped in bringing down Tiscal deTicit which would be further reduced to 3.5 percent of Gross Domestic Product (GDP) by 2018-19.

The concerned authorities have set 3.8 percent Tiscal deTicit target for current year 2016-17 which will be further brought down. Fiscal con-

solidation remains on track as Tiscal deTicit continued to fall for fourth year in a row. The Tiscal deTicit was contained at 8.2 percent in 2012-13 (down from a projected 8.8 percent).

Fiscal deTicit was reduced signiTicantly in 2013-14 and recorded at 5.5 percent of GDP (lower than its budgeted target of 6.6 percent) and recorded at 5.3 percent of GDP in 2014-15. Fiscal deTicit was reduced further at 4.6 percent of GDP during 2015-16 supplemented by enhanced revenue mobilization and rationali-

zation of non-development expenditure. Enumerating the main steps taken by government to reduce dependence upon foreign and domestic loans, sources at Finance Division on Tuesday said it may not be out of place to mention that borrowing both domestic and foreign is undertaken to meet Tiscal deTicit as can be seen from above, there has been a dramatic decrease in Tiscal deTicit as a result of which borrowing requirement have also been slashed as percentage of GDP. Furthermore, the

sources said by increasing domestic revenues, the dependence on loans is reduced as Tiscal gap is narrowed.

In this context, domestic resource mobilization strategy helped in achieving higher revenue growth and tax-GDP ratio in recent years.

The FBR tax revenues have also increased signiTicantly during the last three Tiscal years. In 2012-13, the revenue collection was Rs.1,946 billion which has increased to Rs.3,112 billion in 2015-16, registering an overall growth of around 60 percent

while Tax-to-GDP ratio which was below 9.8 percent of GDP in 2012-13 has been increased to 12.4 percent of GDP during 2015-16. The sources said development budget has been gradually and adequately raised in order to meet investment requirements of a growing economy. Federal Public Sector Development Programme (PSDP) gradually increased from Rs.348.3 billion during 201213 to Rs.800 billion for 2016-17, showing a cumulative increase of over 129 percent.

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FIA to get custody of over 70 Pakistanis handed over by Iran QUETTA: The Federal Investigation Agency (FIA) to get custody of over 70 Pakistani nationals handed over by the Iranian Security forces to Levies force in Taftan area of Chaghi district.

Levies sources have said that these Pakistani workers were apprehended from different parts of Iran by Iranian security forces because they were living there without travelling documents.

“These deportees would be handed over to FIA for further interrogation after completing initial inquiry,” the Levies sources added.

Hyderabad ASo impounds goods & vehicle valued Rs01.6

Thursday March 30, 2017

National

coal importers demand entry of stranded trucks into Afghanistan

HYDERABAD

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he Anti-Smuggling Organizations (ASO) Hyderabad has impounded smuggled goods including foreign origin Non-Duty Paid Toyota Primo car and 30 cartons of dinner sets and 2400 pieces of different brands of body spray perfume worth Rs01.6million involving duty taxes of Rs01.5million during different raids. During February 2017, Collector MCC Hyderabad Agha Sahid Majeed Khan directed his staff to curb smuggling attempts in the region. The ASO team, under the supervision of Additional Collector Omar Shafique, conducted different operations in Hyderabad and recovered smuggled items.

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fBR directed to meet revenue target for fY 2016-17 ISLAMABAD

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ederal Minister for Finance Ishaq Dar directed the Federal Board of Revenue (FBR) to utilize all legal efforts to meet the tax revenue target of current fiscal year. He made these remarks at a meeting on matters pertaining to the Federal Board of Revenue (FBR). He encouraged FBR to ensure that all stakeholders are actively engaged and consulted in the preparation process for the budget.

He said that effective measures against tax evasion and for promotion of tax culture would further strengthen revenue generation which is vital for achieving higher, sustainable and inclusive economic growth in the country. Haroon Akhtar Khan, Special Assistant to Prime Minister on revenue, provided an update to the Minister on preparations for the upcoming budget for FY 2017-18.

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PESHAWAR

iRfAn BAHADuR

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he trader community, dealing in import and export of coal, has demanded the government to allow entry of coal stranded vehicles into Afghanistan and save them from further financial losses.

Taking to Customs Today, Coal Traders Association General Secretary Iqbal Yousaf said that around 20,000 ton of coal is loaded on more than 500 trailers and trucks stranded on Afghanistan side since the closure of Torkham border. He lamented that they would have to bear huge Tinancial losses of over Rs400million if border was not reopened immediately.

Flanked by the association members, Sohail Ahmad, Malik Zafar and Haji Bagh Jalal, he said they are being paid Rs3500 per day as rent of a truck but transporters are also demanding extra fares amid prolonged closure of the border. Moreover, he said they did pay Rs57million as export duty to Afghan authorities.

Yousaf also said they will pay additional freight of Rs300million besides a huge amount of Rs08million as load and unload charges in Afghanistan if their vehicles are not permitted to depart early, he added.

He said the business community has already suffered colossal monetary losses due to prevalent circumstances in Pakistan, and urged the

government to avoid further economic genocide of the community.

The association president said the government of Pakistan has collected Rs.01billion under the head of Sale and Income tax from the coal traders. He informed the authorities concerned that every year around four lac ton of coal are imported from Afghanistan to Pakistan.

On the occasion, Sohail Ahmad said cement industry and other in-

flanked by the association members, Sohail Ahmad, Malik Zafar and Haji Bagh Jalal, he said they are being paid Rs3500 per day as rent of a truck but transporters are also demanding extra fares amid prolonged closure of the border

poppy crop spread 699 kanals destroyed

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PESHAWAR

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www.customsbulletin.com o control the growing ratio of drug addiction, the political administration of lower Mohmand sub-division destroyed the poppy crop spread over 699 kanals in different areas of Prang Ghar and Ambar tehsils on Wednesday.

Political Naib-Tehsildar Muhammad Riaz Khan told local journalists that the administration has

started the eradication campaign against poppy with the help of the local elders and support of a heavy contingent of Levies and Khassadar forces in Dabar, Tatareen areas of tehsil Prang Ghar and Shati meena, Sheen Kamar,Sadiq Abad, Zawani Meena, Shah Khan, Sor Tangi,Snagar, Olai Shah and Shah Mat Kor of Ambar tehsil in lower Mohmand region.

“We have destroyed a total of 518 kanals’ poppy crop in the entire Prang Ghar tehsil including

429 kanals at Dabar and 89 Kanals at Tataren” , said Khan. Assistant Political Agent Naveed Akbar Khan said the administration had asked the tribesmen to voluntarily eradicate the poppy crop. He said the tribal elders were held accountable to mobilize the tribesmen to ensure eradication of poppy crop.

He said they had started the campaign from the first of week of February on the directives of Political Agent Mahmood Aslam Wazir in all the areas of lower Mohmand.

dustries give them orders. He said if demand of clients was not fulTilled timely in Pakistan, they will inTlict enormous Tinancial losses, and urged Pakistani authorities to allow the entry of stranded vehicles to save them from further losses.

He also appreciated the role of security forces and government of Pakistan for taking tight security measures and border management, which is pre-requisite for country’s safety and security.

nabila relinquishes charge as Secretary-iR abila Faran Baig, a BS-19 officer of Inland Revenue Service, has relinquished the charge of the post of Secretary.

The officer, pursuing the Board’s Notification No. 0338-IR-I/2017 dated 02.02.2017, relinquished the charge of the post of Secretary at Federal Board of Revenue (HQ), Islamabad with effect from February 2.

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K Electric should implement Nepra’s decision to cut tariff KARACHI: The trade industry has called upon the K Electric’s management to implement the National Electric Power Regulatory Authority’s (Nepra) decision to cut down its tariff by Rs3.50 per unit and notify it to the consumers without further delay.

Lasbela Chamber of Commerce and Industry President Ismail Suttar while welcoming the decision of Nepra said that this decision was long awaited in view of falling crude oil/gas prices in the international market. He said that citizens and industries of Karachi were paying exorbitant electric bills to K-Electric for the last few years and due to high tariff, exporters were unable to compete in the international market.

Thursday March 30, 2017

Business

cM takes notice of prices of essential items LAHORE

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unjab Chief Minister Muhammad Shehbaz Sharif took notice of increase in prices of essential items and directed Provincial Cabinet Committee on Price Control to take necessary steps immediately.

He said that all out steps should be taken for bringing prices of daily use items at appropriate level for the facility of the people. The Chief Minister said that Cabinet Committee on Price Control should review the prices of daily use commodities by paying visits to the markets and bazaars. Shehbaz Sharif said that

Hundreds of irrigation projects under progress PESHAWAR

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people could not be left at the mercy of proTiteers at any cost. He said that

pakistan updates guidance for islamic banks' external audits

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o review and discuss the ADP of irrigation department for the current and next financial years, a high level meeting was told that 209 schemes were under progress in the entire province, wherein 169 are on-going and 40 other were included during the current Fiscal Year. The meeting was chaired by Khyber Pakhtunkhwa Senior Minister for Irrigation and Social Welfare Sikandar Hayat Khan Sherpao, which was attended by Secretary Irrigation and other high level experts and officers of irrigation department.

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indiscriminate action should be taken against those creating artiTi-

cial dearness. He also sought a report regarding increase in the prices of essential items.

Meanwhile, The Institute for Policy Reforms (IPR) has offered a reforms plan to enable Pakistan’s economy to catch up with the prosperous Western countries. A comprehensive report issued on Monday sets forth a practical plan of action for achieving rapid economic growth. “Examples of other countries show that this can be done,” it said. The report suggested that Pakistan must increase the government revenue to enable it to provide public goods and to reduce external borrowing. “Steps are needed to increase domestic savings. High growth economies consistently invest over 25% of their GDPs, including 7% on infrastructure.

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KARACHI

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akistan's central bank has updated guidance on sharia governance for Islamic Tinance institutions, expanding the scope of external audits to help mitigate conTlicts of interest and increase transparency. There are growing calls across the Islamic Tinance industry to strengthen the certiTication process of Islamic banks and their products to improve the consumer appeal of the sector.

Religious scholars who members of an Islamic bank's sharia board are now barred from serving in any external audit Tirm, the State Bank of Pakistan said in a circular that complements original guidance from 2015. External sharia audits, which review operations to determine whether Islamic banks are operating in accordance with Islamic principles, would also have to cover pool-management practices and technology systems.

This includes the way Islamic banks calculate distribution of proTit and loss to depositors, the tracking

of assets, and the allocation of income and expenses. The move is designed to separate the veriTication of proTit and loss distribution between the banks and the external auditors, in contrast to the joint veriTication that was allowed under earlier guidance. Fit and proper criteria must also be applied to scholars serving as part of an external audit, the central bank said. While Pakistan is the world's second most populous Muslim nation, its Islamic Tinance sector is struggling to gain market share from conventional peers despite double digit growth.

centre wants cut in expensive tariff, Sindh opposes ISLAMABAD

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he federal and Sindh governments seemed working on contradictory policy directions on electricity tariffs for future power projects based on Thar coal.

This became public when the Sindh government on Tuesday demanded continuation of existing expensive tariff for Thar coal-based power projects and the federal government demanded 15-20 per cent cut in existing rates that were offered to ‘early bird’ investors to open up Thar coal deposit. At a public hearing presided over by National Electric Power Regulatory Authority (Nepra) Chairman Tariq Sadozai, independent experts on the other hand suggested that future rates for Thar coal-based power plants should be in line with competitive market rates for other sources and the practice of preferential treatment to any specific fuel should be brought to an end for a fair market environment.

The hearing was attended by an unusually large number of participants as the regulator sought views for international competitive based tariff for Thar coal investments instead of old incentivised cost plus tariff structure that expired a few months ago.

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textile sector in shambles despite govt efforts: pBif ISLAMABAD

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akistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain has said that textile sector is not picking up despite best efforts of the government. The present government has invested billions in the textile sector to boost exports as this sector is the largest foreign exchange

earner and second largest job provider but to no avail, he said.

Hussain said that on the other hand, Bangladesh which imports 95 percent of the cotton has become world’s leading exporter of garments outside China. He said that exports have reduced by 20 percent during the tenure of incumbent government which is disturbing and calls for out of the box solutions. The cotton production has dwindled from Tifteen million bales to ten mil-

lion bales necessitating imports which increase cost of doing business, he added. The business leader said that those who links reduced exchange rate with increased exports are wrong as it is a temporary solution. He said that cost labour continue to increase in China which has $80 billion garments export market therefore many Chinese companies have moved to Bangladesh and Vietnam.

Meanwhile, The All Pakistan

Business Forum (APBF) is organising a conference on “Ease of Doing Business in Pakistan”.

The forum will be held on the April 5, 2017 at the Pearl Continental Hotel in Lahore. More than 250 distinguished entrepreneurs, along with regulatory and industrial experts from the public and private sectors will share their knowledge at this forum.

The diplomatic community, academia and media will also grace the

event to portray a positive image of Pakistan as a destination of choice for global investors. Punjab Governor Rafique Rajwana and Commerce Minister Khurram Dastagir Khan will be the chief guests during the two insightful sessions. Several ambassadors are also expected to attend the moot as the guests of honour. The speakers will discuss critical topics with the aim to devise an effective roadmap for a brighter future.

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KARACHI

M B RAnA

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he Port Muhammad Bin Qasim authorities have collected Rs 312 billion against the assigned target of Rs 247 billion till March 27, 2017, Collector Saeed Akram has said.

In an exclusive interview with Customs Today, he said that the collection is 13 percent more than the assigned target.

The collector Port Muhammad Bin Qasim said that the port was handling bulk cargoes which enabled the department to cross the assigned target. However, he said that increase in shipping cargoes also brings challenges as well as opportunities for the department.

Collector Akram said that the port was number one in terms of revenue generation.

“We have several departments including antismuggling, preventive, assessment, appraisement, enforcement,” he said, adding that “whatever comes in your mind related to a port activity we have all the services.”

“Handling the port services is a big challenge, so we try our best to facilitate taxpayers within due time and with transparency,” he said. “We have achieved the target with hardworking and devotion,” said the collector.

He said that, in future, coal is going to become the biggest source of energy in Pakistan. “We have developed a separate terminal, Pakistan International Bulk Terminal (PIBTL), for the transportation coal,” he said, adding that “the terminal is sprawling over an area of 72 acres and it costs the government

Thursday, March 30, 2017

$285 million.” Collector Saeed said the terminal is environment friendly and the authorities have complied with all the international environmental laws during the construction of the terminal. While answering a query about transparency on the port, Saeed Akram said that everything is online now. “The exporters, importers and officials can see the clearance process on their computers and this is how we have tried to minimize corruption in the department,” he said.

“We have also developed a mechanism in which every assistant collector would be responsible for whatever

happens in his/ her jurisdiction irrespectively,” he said.

He stated that customs will have to play a key role in China Pakistan Economic Corridor (CPEC) and that is why the customs department has acquired 12 acres of land in Gwadar and has started a mega infrastructure with the enormous amount of Rs 1.2 billion.

He added that “with the great responsibilities of CPEC, we will need a large number of employees, therefore, employment opportunities will be created in bulk in the country.

On a question of unnecessary delay to clear consignments, he replied that “we have adopted an efTicient Risk Management System (RMS) which has expedited proper process of examination of containers.

Besides this, he said: “We have created a criteria for our ofTicers to clear the consignments by checking the classiTication of items, valuation according to the ruling or historical data.” If somebody has applied or exemptions according to some SROs or FTAs, the ofTicials would check it accordingly, he t u o er y ab said, adding that “rationalizau q m a Akra ring e d tion of taxes is the best way to e w s e an Sa he port, prevent smuggling. while t e “ . h t w y on e no c n Saeed Akram said he has i n l e n r so pa ls c an trans worked with some very prohing i a i t c y r ffi e and o fessional and experienced hat ev said t orters their p m i people and among them are , ss on s e r c e o t d r r e trie Chairman Federal Board of expo nce p e hav cleara w e w h Revenue Dr Muhammad Iro t h s i see s e i h shad and Member Customs n in th and t uptio uters r p r o Zahid Khokhar. m c o c ize

nim said to mi t,” he n e m t depar

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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

Journey towards development

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rime Minister Nawaz Sharif has expressed the hope that the country will continue to travel on the path of sustained economic development, which is also acknowledged by international financial institutions. Talking to a Chinese delegation, he pointed out some chronic challenges facing the nation such as energy crisis, terrorism and rising trade deficit. However, he hoped that his government would be able to improve security situation and will rid the country of power shortage forever.

No doubt the power supply has improved to some extent during the present government tenure, but the people are still facing the brunt of load shedding, which has adversely affected not only the domestic consumers but also the industrial sector. The government is trying to generate electricity from diverse resources, but it could not start mega projects like Kalabagh Dam and other electricity generation projects due to one reasons or the other. However, a 1,320 MW coal based power project is being set up in Balochistan in collaboration with China and it is hoped it will fulfill the needs of the province to some extent.

China is the latest model of economy to emulate. Both Pakistan and China have close relations and Beijing cooperation should be sought to transfer its light industries to Pakistan instead of Bangladesh. At the domestic level, a conducive business environment is imperative to attract foreign direct investments in business, tradeand energy sectors. Pakistan is a huge consumer market of 200 million people and western nations can be induced to set up industries in the country. The prime minister rightly pointed out that ChinaPakistan Economic Corridor is not only a step towards regional connectivity, but also a road for regionalization of the cherished goals of peace and prosperity.

The central Asian states can be connected to the corridor through China and Afghanistan and a regional economic block will be in the best interest of all nations. The economy of Pakistan has come out of the years of slumber and all the variables are in its favour.

textile sector woes P

LAHORE

DR AftAB AfZAL

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akistan’s textile sector has been facing multiple issues for the last many years and it has adversely affected the export volume of the country to the unreasonable level. The prime minister has recently announced a textile package for this sector, considering it as the backbone of the economy, but no visible change has so far been marked. The textile industry contributes around 60 percent to the total exports of the country, but the exports have declined by 20 percent during the last four years. Experts believe the dwindling cotton production

is the root-cause of the problem.

The annual cotton production of the country has dropped from 15 million bales to 10 million bales which has raised the cost of production. The law and order situation is the second reason which has tarnished the image of the country in the eyes of the international community.

The recent spate of suicide bombing has added insult injury while miscreants are continue to attack Pakistani check-posts from Afghanistan. A country in the war will not be able to convince the world that everything is right in this part of the world.

As a matter of fact, energy crisis is another reason for the declining exports as the manufacturers have failed to comply with

the business orders from around the world. However, the industrialists blame the government for devising ill-conceived policies which have raised the cost of production in the country. It is a point to ponder for the policymakers how a country like Bangladesh has made itself a powerhouse of finished garment products and has become the second biggest garment exporter after China. Though Bangladesh has exploited its status as the ‘lowest developed country’ in the world and enjoys access to the developed markets such as the European Union and the Unites States, Pakistan also enjoys GSP status of the European Union.

Pakistan is one of the leading cotton producing country in the

world after China, India and the United States, but it should be a matter of concern for the policymakers who have failed to improve cotton exports as compared to Bangladesh. Some of the entrepreneurs blame strong Pakistani rupee as a reason behind the fall in the exports, but the government has so far resisted all the efforts from certain quarters and has maintained the value at certain level.

The strong currency is the guarantee of strong economy and the government has befittingly ward off all the efforts towards devaluation of the Pakistani rupee. It is hoped that reasons and commons sense will prevail and the government will be able to revive the export sector.

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OICCI asks FBR to reduce number of withholding tax KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI), in its budget proposals, has urged the Federal Board of Revenue (FBR) to revamp withholding tax regime and reduce the number of tax rates to 5 from 55 rates. The OICCI stressed the need for revamping and massive simplification of withholding tax regime from current 55 rates to only five rates.

In other proposals, the OICCI suggested reduction of Corporate Tax rate from 30 to 25 percent and General Sales Tax rate from 17 percent to 13 percent in line with the rates in Asia region. Further, 3-4 percent super tax should also be abolished.

The chamber proposed rationalize Minimum Tax Regime (MTR) for large value but low margin businesses like oil marketing companies.

ScA expresses concern over shortage of water in Sindh HYDERABAD

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indh Chamber of Commerce (SCA) has expressed fear that the water level in the Indus river at Kotri Barrage would drop to around 1,000 cusecs in the coming days, creating a severe water shortage in many parts of Sindh.

The SCA’s office bearers and members held a meeting here Sunday at the Chamber’s office which was attended by representatives of the farmers’ community from Karachi, Sanghar, Sukkur, Ghotki and other districts through the video link.

“The water level at Kotri barrage will drop

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to just 1,000 cusecs around next week which will be the lowest after year 2005,” said Dr Syed Nadeem Qamar, the SCA’s president who chaired the meeting. He worried that the situation would create not only a severe shortage for irrigation water but the supply of drinking water to many cities would also be affected. Dr Qamar requested the government to inform the people on daily basis about the water level in Indus River and also to advise them to avoid wastage and unnecessary use of water. The SCA’s president also advised the farmers to keep in view the said shortage while cultivating different crops. The meeting also expressed concern over the wheat procurement process and requested the Sindh government to supply gunny bags and ensure implementation over Rs. 1,300 per 40 kilogram official wheat buying rate. The farmers complained at the meeting that although the provincial government had opened the wheat procurement centers but the gunny bags were not being supplied in adequate numbers.

Thursday March 30, 2017

Chambers

Lithuania keen to promote bilateral trade with pakistan L

ISLAMABAD

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ithuania was keen to promote bilateral trade and economic relations with Pakistan as it considered Pakistan a promising country for business relations. This was observed by Audrius Bruzga, Ambassador of Lithuania for Pakistan based in Turkey while addressing business community at Islamabad Chamber of Commerce and Industry. He was accompanied

by Muhammad Masud Khan, Honorary Consul General of Lithuania in Pakistan and Mrs. Kristina Babiciene, Second Secretary of Lithuanian embassy.

He said Lithuania was a well-integrated with European Union and it wanted to reach out to Pakistan for more cooperation in multiple fields. He said Lithuania had advanced technology and expertise in solar energy while it was generating more than 56% of its energy through renewable sources. He said Lithuania could help Pakistan in overcoming its energy crisis. He said ICCI should form a delegation for Lithuania to explore new areas

of mutual cooperation.

Speaking at the occasion, Khalid Malik, Senior Vice President, Islamabad Chamber of Commerce and Industry said that diplomatic relations between Pakistan and Lithuania were established in 1994 and both countries have held many consultations to improve bilateral relations in many areas including economic, trade, investment, education, science & technology. However, he said bilateral trade between Pakistan

and Lithuania was negligible as there was no direct interaction between private sectors of both countries. He stressed that Pakistan and Lithuania should focus on frequent exchange of trade delegations and market information to explore new avenues of mutual cooperation.

He identiTied textiles, furniture, food processing, petroleum reTining, chemicals, agriculture machinery, electronics, information technology and medical science as potential ar-

eas of bilateral cooperation between both countries. He said to realize actual potential of mutual collaboration, both countries should work on establishing direct links between their private sectors. He said Lithuania was doing more than 80 percent of its total trade with EU and Central Asian countries. He urged that Lithuania should enhance its imports from Pakistan as many Pakistan products could meet the needs of its consumers at competitive prices.

Dubai chamber seeks to boost ties with regional counterparts

Datalex’s profits, revenues for 2016 fly higher

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ravel software company Datalex has reported higher profits and revenues for last year during which it agreed new deals with the likes of Lufthansa and IBM. Datalex said its profit after tax for the year to the end of December rose by 29% to $5.4m while revenues for the year increased by 19% to $55.3m from $46.6m.

The revenue increase included a 15% increase in platform revenue to £26.4m on the back of new go-lives and the full year impact of the customers brought live during 2015. The board has recommended a dividend of five US cents per share, up 25% on the dividend for 2015. Datalex provides commerce software to travel companies and in particular airlines which helps them. –CB Report

DUBAI

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he Dubai Chamber of Commerce and Industry held economic meetings with its counterparts in Ras Al Khaimah (RAK) and Saudi Arabia, the Dubai government body announced on Thursday.

During the meeting with the RAK Chamber of Commerce and Industry, Dubai officials shared knowledge they have gained within the emirate, as well as displaying smart services provided to their members and businesses.

In a separate meeting with representatives from Saudi Arabia’s Chamber of Commerce and Industry, discussions covered customer

services and systems, as well as eco-friendly building solutions.

Meanwhile, The Dubai Chamber of Commerce and Industry recently participated in the Investing in Africa conference in London, an event put together by the Wall Street Journal.

Majid Saif Al Ghurair, chairman of the Dubai Chamber, addressed those in attendance at the conference, speaking about the importance of trade between Dubai and Africa. He also talked about the Chamber’s expansion plans on the continent.

“Dubai’s trade relationship with Africa has gone from strength to strength in recent years, supported by the trade missions led by the Chamber and the expansion of our interna-

tional offices in promising markets on the continent,” Al Ghurair said. “The number of African companies registered with Dubai Chamber has now exceeded 12,000, which is a testament to the increased cooperation between both sides.” In attendance at the event were Patrick Njoroge, governor of the Central Bank of Kenya; Uche Orji, managing director and CEO of the Nigeria Sovereign Investment Authority; Chinelo Anohu-Amazu, director general and CEO of the National Pension Commission of Nigeria; Chris Folayan, founder and CEO of MallforAfrica.com; Akinwumi Adesina, president of the African Development Bank; and Mo Ibrahim, chairman of the Mo Ibrahim Foundation.

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Ajmal Khan given charge of Dy Commissioner-IR in Peshawar Thursday March 30, 2017

National pcA Addl Director Malik kamran relinquishes charge ISLAMABAD

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ISLAMABAD: Ajmal Khan, an Inland Revenue Service officer of BS-18, has been given the charge of the post of Additional Commissioner-IR, RTO, Peshawar on OPS basis with immediate effect & until further orders.

The officer, who is presently posted as Deputy Commissioner-IR at RTO, Peshawar, has been directed to relinquish/assume charge, using online HRMS facility made available at all FBR major field offices or by using IJP login.

Saima Aftab assumes charge as Addl collector (Appraisement) in Lahore S

ISLAMABAD

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alik Kamran Azam Khan, a Pakistan Customs Service officer of BS-19, has relinquished the charge of the post of Additional Director, Directorate General of Post Clearance Audit (HQ).

The officer, in pursuance of Establishment Division’s Notification No.60/01/2017-E.I dated 17.03.2017, relinquished the charge of the post of Additional Director, Directorate General of Post Clearance Audit (HQ), Islamabad with effect from March 22.

Meanwhile, Nabila Faran Baig, a BS19 officer of Inland Revenue Service, has relinquished the charge of the post of Secretary.

The officer, pursuing the Board’s Notification No. 0338-IR-I/2017 dated 02.02.2017, relinquished the charge of the post of Secretary at Federal Board of Revenue (HQ), Islamabad with effect from February 2.

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ihsan Ali takes charge as islamabad collector (Adjudication) hsan Ali Shah, a Pakistan Customs Service officer of BS-20 officer, has taken charge of the post of Collector, Collectorate of Customs (Adjudication).

Ihsan, in pursuance of Board’s Notification No.0715-C-I/2017 dated 03.03.2017, relinquished the charge of the post of Additional Director, Directorate of Reforms and Automation (Customs), Karachi with effect from March 09 and assumed charge as Collector (Adjudication) in Islamabad on March 20. Meanwhile, Asma Aftab, a BS-20 officer of Inland Revenue Service, has assumed the charge of the post of Commissioner-IR. The officer, in pursuance of Board’s Notification No. 0674IR-I/2017, dated 01.03.2017, took the charge of the post of Commissioner-IR, (Zone-1) at RTO office II. –CB Report

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aima Aftab, a Pakistan Customs Service ofTicer of BS-19, has assumed charge of the post of Additional Collector, Model Customs Collectorate (Appraisement), Lahore.

The ofTicer, in pursuance of Board’s NotiTication No.0905-C-II/2017, relinquished the charge of the post of Additional Collector, Collectorate of Customs (Adjudication), Faisalabad with effect from March 17.

Meanwhile, Usman Bajwa, a Pakistan Customs Service ofTicer of BS19, has assumed the charge of the post of Additional Collector.

The ofTicer, in pursuance of Board’s NotiTication No. 0905-CII/2017 dated 16.03.2017, relinquished the charge of the post of Additional Director, Directorate

General of Intelligence & Investigation, Islamabad with effect from

March 17 and took the charge as Additional Collector at Model Customs

Collectorate of Preventive, Lahore on March 20.

faisalabad Afu seizes 451 nDp mobile phones T

FAISALABAD

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he Model Customs Collectorate (MCC) Air Freight Unit (AFU) Faisalabad has conTiscated over 451 pieces of smuggled foreign origin mobile phones and three dummies at the Faisalabad International Airport during a checking of Bahrain Flight No: GFA790. The total cost of the conTiscated mobile phones is about Rs05million. The mobile phones were brought from Bahrain via above said Tlight to Faisalabad.

Sources told Customs Today that the AFU team, under the supervision of Deputy Collector (DC) Airport TrafTic Usman Tariq and Assistant Collector (AC) Samad Hamdani, comprising other staff including Superintendent Muhammad Javeed, Inspectors Khalid Ashraf Noor and Tanveer Bajwa, intercepted two passengers and checked the invoices of the cellular phones and imported dummies. Both passengers named Abdul Samad and Tayyab Manzoor were seen coming with their lug-

gage of handbags loaded on a trolley.

Upon a doubtful movement of the said passengers, Customs team asked them to show the receipt or invoices but they failed to provide any relevant documents.

One of the two passengers

namely Abdul Samad Tled the scene leaving behind the said phones.

However his accomplice Tayyab Manzoor has been arrested. During the checking, the customs team found mobile sets Samsung Galaxy, Samsung S3, Samsung Galaxy S6

mobile, LG Lite and other different brands. The AFU seized mobiles under Section 168(1) of the Customs Act-1969 for violation of Section 2(s) read with SRO read with Section 3(1) and (3) of the Import and Export Control act-1969.

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Customs, IR Depts directed to ensure strict security measures ISLAMABAD: The Federal Board of Revenue directed that all field formations of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS) immediately review the security arrangements/plans and take necessary steps required to ensure fool proof security of their offices and personnel.

Secretary (S&M)Saleem-ur-Rehman, in a circular, said that the directive has been issued in view of the ongoing over-all security situation of the country.

“Necessary liaison may also be maintained with the local law-enforcement agencies in this regard,” he said, adding that steps taken in this regard may also be shared with the Board at the earliest.

Six inland Revenue officers of BS 17-19 reshuffled ISLAMABAD

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ederal Board of Revenue has transferred/posted six Inland Revenue Service officers of BS 17-19 with immediate effect and until further orders. Sanaullah Nawazani (BS-19) has been transferred from the post of Additional Commissioner, Regional Tax Office III, Karachi and posted as Additional Commissioner Inland Revenue Corporate Regional Tax Office, Karachi. Sardar Temur Khan Durrani (BS-19) has been transferred from the post of Additional Commissioner, Corporate Regional Tax Office, Karachi and posted as Additional Commissioner Inland Revenue Large Tax-

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payers Unit, Karachi. Imran Ali Sheikh (BS-18) has been transferred from the post of Deputy Commissioner, Large Taxpayers Unit, Karachi and posted as Additional Commissioner Inland Revenue (OPS) Large Taxpayers Unit, Karachi.

Abdul Salam Khan (BS-18) has been transferred from the post of Deputy Commissioner, Large Taxpayers Unit, Karachi and posted as Additional Commissioner Inland Revenue (OPS) Large Taxpayers Unit, Karachi. Tarique Aziz (BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Large Taxpayers Unit, Karachi from the post of Deputy Commissioner, Regional Tax Office III, Karachi. Rabnawaz Ahmad Matiana (BS-17) has been transferred and posted as Deputy Commissioner Inland Revenue Large According to the notification, the officers who are drawing performance allowance , they will continue to draw this allowance on the new place of posting. All the officers have been directed to relinquish/assume charge, using online HRMS facility made available to FBR or by using their IJP logins.

National

iHc issues notices to parties on reference filed by customs authorities

faisalabad ASo impounds fork-lifter worth Rs01 million FAISALABAD

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he Customs Anti-Smuggling Organization (ASO) Faisalabad impounded a non-duty paid foreign origin fork lifter. The market value of the said lifter is Rs01million, also involving duty of Rs350000. Deputy Collector Customs Muhammad Rizwan received a tip-off about the smuggling of a non duty paid fork-lifter in the city. He immediately constituted a raiding party comprising Superintendent Saeed Joiya, Inspectors Khalid Ashraf Noor, Mehmood Dogar, Ali Zahid, Muhammad Khalid, Muhammad Afzaal, Muhammad Ashraf, Zulfiqar Ali Awan, Muhammad Naeem and Muhammad Yasin and started searching vehicles in different areas in the city. While searching, the ASO team intercepted a fork-lifter with chassis No: 5FG30-10304 near Shahianwala Faisalabad. The ASO team asked the driver to provide legal documents regarding the legal possession of forklifter. The driver, who was later identified as Zafar Iqbal khan son of Shehmer Khan, tehsil silanwali district Sargodha, failed to provide any required document to the ASO team.

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division bench of the Islamabad High Court (IHC) issued notices to respondent in a case filed by Director General Customs Intelligence and Investigations, Islamabad.

The bench comprising Justice Athar Minallah and Justice Mohsin Kiyani heard the customs reference filed by department against Missal Khan.

Meanwhile, Justice Aamer Farooq of the IHC adjourned the hearing of M/s Hasas Engineering and Construction Company (Private) Limited’s tax matter.

M/s Hasas Engineering and Construction Company had challenged the show cause notice issued by the Commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. The notice was issued under the head of income tax.

The company had prayed the court that the recovery notice did not hold lawful grounds and be declared illegal and an interim stay may be granted against recovery proceedings.

It also submitted that the im-

Thursday March 30, 2017

pugned order was issued under mala fide intention and the court may decide on relief which it deemed appropriate in this regard.

It also stated that the due legal course was not followed by the department in issuing the order.

M/s Hasas Engineering and Construction Company also prayed the court to decide the case early as the appellant had to bear financial complications after the case.

ATIR, Federal Board of Revenue (FBR), officers of LTU including Commissioner Inland Revenue, and others were made respondents in the case.

The company had also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication did not address the grievances of the appellant.

Hyderabad customs collects Rs585.047 million

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he Model Customs Collectorate (MCC) Hyderabad has generated Rs585.047million customs duty and taxes against the target of Rs1398.70million during 15 days of March 2017.

The department collected Rs159.733million customs duty, Rs418.875million sales tax, Rs0.250million federal excise duty (Special FED) and Rs6.189million Withholding Tax (WHT) during the abovementioned period.

The MCC Hyderabad received Rs585.047million during 15 days of

March 2017 and expects to achieve Rs253million customs duty (CD), Rs1.104million sales tax (ST), Rs3.7million federal excise duty (FED) and Rs38 million withholding tax (WHT). The major tax sources were dry port, Hyderabad state ware house, Hyderabad Sukkur and Larkana division, Huffaz Seamless Pipe Industries, Crescent Steel, Omni Polymer Industries, Rema Cooking Oil and the Pakistan State Oil. Under the supervision of Hyderabad Customs Collector Agha Shahid Majeed, Additional Collector Rehmatullah vistro, Additional Collector Omar ShaTique and Superintendent Mohammed Yaqoob Pasha played an important role in revenue

collection, ofTicials said. They added that the anti-smuggling campaign was in full swing in the region following the direction of the Federal Board of Revenue and Collector Agha Shahid Majeed Khan to streamline the national economy.

The ASO also foiled various smuggling attempts and made big seizures including non-duty paid vehicles, different cigarettes, Iranian diesel HSD and other goods worth million of rupees.

Meanwhile, The Customs AntiSmuggling Organization (ASO) Hyderabad has seized 750 cartons of foreign origin BAHMAN cigarettes worth Rs300000 involving customs duty and taxes of Rs318000 during

an action in Sukkur.

The action was taken following the directions of Collector Hyderabad Agha Shahid Majeed Khan.

Sources told Customs Today that Additional Collector Rehmatulah Vistro received a tip-off regarding the smuggling of foreign origin contraband goods. He formed a team, comprising Superintendent Ghulam Shabbir Phulputo, Inspectors Nasrullah Jilal, Ayaz Ali Shah, Rahib Ali Abro, Abdul Wahab Sheikh, Muhammad Jurial Abbasi, Agha Nazir Ahmed, Sepoys Shabbir Ahmed Thebo, Iqbal Sheikh, Hawaldar Mehram Ali, Driver Manzoor Shori and others, to take action against the smuggling.

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Germany, Japan eyes revised trade deal Thursday March 30, 2017

World

BERLIN: German Chancellor Angela Merkel and Japanese Prime Minister Shinzo Abe called for a concerted effort to defend free trade, expanding the list of economic powers joining together to counter the U.S. shift toward protectionism. Barely 48 hours after Merkel and President Donald Trump clashed on economic policy at their first White House meeting, the German leader called for swift conclusion of a trade accord between Japan and the European Union. That followed a renewed German-Chinese commitment to open markets on the eve of her trip to Washington and Merkel’s backing for a free-trade accord between the EU and Mercosur, the South American economic bloc.

thai customs foils attempt to philippines Boc seizes used clothing in raids smuggle 21 rhino horns MANILA

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BANGKOK

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It’s the biggest conTiscation of rhino horns in 5 to 10 years”, said Somkiat Soontornpitakkool, director of Thailand’s Wild Fauna and Flora Protection division. Customs ofTicials said the horns are unusually large and pristine. Two Thai women who had traveled from Vietnam and Cambodia arrived to collect them, before Tleeing when their luggage was checked.

Warrants have been issued for the arrest of two Thai women for suspected involvement in the smuggling of rhino horns from Ethiopia with a market value of over 170 million baht. The horns, blood, skin and urine from Rhinoceros are highly valued both in China for traditional medicine and in Vietnam where they are considered luxury items.

A 30-day period during which

South korea agrees to import indian mangoes ango exports from India might see a significant boost this year, with South Korea allowing imports of the fruit after conducting the stringent pest risk analysis (PRA). India’s entry into the South Korean market would boost competition, as mango originating from India has been popular in the Middle East, the Far East, the United States and Europe. In an advisory issued to its members, Agricultural and Processed Food Products Export Development Authority (Apeda) said, “The South Korean Animal and Plant Quarantine Agency (QIA) has finally agreed to the importation of Indian mangoes into South Korea after Vapour Heat Treatment (VHT) in specified temperature conditions.” India’s fresh mango exports declined nearly 15 per cent last year. –CB Report

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the public was invited to express opinions about the draft legislation on rhino horn trade ended Friday, the Department of Environmental Affairs said. They ran away after an ofTicial stopped them. It’s possible to cut off a rhinoceros’ horn without killing it, but the dehorning process poses risks to their health.

Wild rhino populations have dwindled to just 29,000 from half a million at the beginning of the 20th century, according to the International Rhino Foundation.

Last month poachers stormed an animal orphanage in South Africa and killed two rhinos for their horns after taking staff hostage.

Russia, Japan to hold first consultations on joint activities on southern kuriles

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he Tirst round of the RussianJapanese consultations on joint economic activities on the southern Kuril Islands will be held in Tokyo on Saturday. Taking part in them will be Russian Deputy Foreign Minister, Igor Morgulov, and his Japanese counterpart, Takeo Akiba.

Tokyo is expected to offer Moscow a plan for cooperation in medicine, Tisheries and tourism. According to the Kyodo news agency, the issue at hand is, in particular, efforts to create

the necessary infrastructure on the southern Kuril Islands and modernize the existing one using advanced Japanese technologies.

Besides, the possibility of creating a system, within which Japanese experts will be able to provide remote medical services to the islands’ residents, is considered. To develop cooperation in Tisheries and seafood production, Japan wants to propose to conduct a joint study of the Russian islands’ water area. –CB Report

ons of used clothing, popularly known as ‘ukay-ukay’, worth millions of pesos and fake high-end goods have been recovered by intelligence operatives of the Bureau of Customs (BOC) in simultaneous raids on four buildings on Cuneta Avenue in Pasay City (Metro Manila).

Seized during the raids, Customs Intelligence and Investigation Service (CIIS) Director Neil Estrella said, were the used clothing and the counterfeit goods bearing labels of Birkenstock, Lebron Nike, Vans, Sanuk, Havaianas, Ipanema Nike, Havaianas FlipTlop, Sandugo, Versace, Nike Jordan, Adidas, Crocs, Star Wars (Pokemon toys), Puma and Nike, among others.

The raiding team was armed with four mission orders and four letters of authority issued by Customs Commissioner Nicanor Faeldon on March

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turkey aims to ban Dutch red meat

urkey’s red meat association ordered a consignment of prize Dutch cattle to be sent back to the Netherlands, saying it no longer wants to farm the cows due to the diplomatic crisis between the countries.

Bulent Tunc, the head of the Turkish Association of Red Meat Producers, told Turkish media that a symbolic consignment of 40 Holstein Friesian cattle was already being sent back to the Netherlands.

“The Dutch Holstein cows have become very common in our country. But this breed is starting

india imports petrol, diesel from china

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NEW DELHI

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ndia, perhaps for the Tirst time, imported petrol and diesel from China as the world’s third largest oil consumer looks at diversifying its sources of fuel.

India imported 18,000 tons of petrol and 39,000 tons of diesel in

the Tirst nine months of the current Tiscal, Oil Minister Dharmendra Pradhan said. “Although overall production of petrol and diesel is in excess of domestic consumption, due to speciTic product requirements, some quantity of petrol and diesel are imported,” he said.

Pradhan said India had not imported any petrol or diesel from China in last four years.

9. Estrella said investigation is ongoing to pinpoint the owner of the fake goods and the brokers and their cohorts in the BOC who helped facilitate the release of the used clothing. Republic Act 4653 prohibits the importation of used clothing, while importation of counterfeit products is in grave violation of RA 8293 or the Intellectual Property Code of the Philippines and RA 10863 or the Customs Modernization and Tariff Act of 2016.

Meanwhile, The Bureau of Customs (BOC) seized some P200 million worth of counterfeit apparel and other products in simultaneous raids on two buildings located along Cuneta Avenue in Pasay City. Customs Commissioner Nicanor E. Faeldon said that the operations were part of BOC’s stringent counter-measures against all forms of smuggling of fake products into the country in grave violation of Republic Act (R.A.) No. 8293 or the Intellectual Property (IP) Code of the Philippines and RA 10863, otherwise known as the Customs Modernization and Tariff Act of 2016.

During April-December 2016, India produced 27.1 million tons of petrol against a consumption of 17.96 million tons. In case of diesel, the production stood at 76.55 million tons in comparison to 57.24 million tons. India imported 8,20,000 tons of diesel and 4,76,000 tons of petrol in April-December, he said. Pradhan said in the Tirst nine months of the current Tiscal, the UAE

to cause serious problems,” he said while talking to press.

He said Turkey should start focusing on breeding its own cattle.

“We have our own quality breeds,” he said. Turkey and the Netherlands are going through their most explosive crisis after The Hague blocked Turkish ministers from holding rallies to back constitutional changes expanding Recep Tayyip Erdogan’s powers.

Turkey has suspended highlevel relations with The Netherlands and blocked its ambassador currently outside the country from returning to his post. –CB Report

toppled Singapore to become the India’s biggest supplier of petrol at 2,43,000 tons. Singapore supplied 1,69,000 tons of petrol.

The UEA was also the top supplier of diesel at 3,80,000 tons.

In 2015-16 full fiscal, Singapore had supplied 6,41,000 tons of petrol while the UAE had sold 1,83,000 tons of petrol and 1,22,000 tons of diesel.

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Dutch bell pepper delays to hit the market AMSTERDAM: The Dutch bell pepper production has not really got into its stride yet.

“We had a very gloomy spring, which delayed the production, so it has been pushed back a bit. Naturally, it will all start happening next week. Apparently, Spain will be mostly finished in a few weeks, which suits the Dutch season,” says Hans Derks, commercial manager of Harvest House.

“For the coming year, we will have a slightly larger bell pepper area compared to last year. The area of expansion has been divided evenly over the colors.

A careful transition to Dutch can now be seen. Price levels are very stable. We had demand from the US early as well,” Hans continues.

Dubai customs celebrates international Day of Happiness ubai Customs took part in the UAE’s celebrations of the International Day of Happiness which takes place on 20th March every year. Dubai Customs organized its event under the theme “We Draw Happiness” which meant to make 2017 a happier year that is full of giving and positive attitude. On the occasion, Dubai Customs surprised its employees with gifts, and the Communication Department organized an awareness lecture on how best to raise a child and follow up their development. The event also saw a number of Dubai Customs’ employees take part in the “Happiness Journey” event organized last Saturday. Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation pointed out that the UAE has outstripped the whole world by adopting happiness and positivity as a corporate commitment and an attitude. –CB Report

World Customs

new Zealand loses $700m a year by tax shifting schemes

ndonesia this month is winding up one of world’s most successful tax amnesties, with at least 745,000 taxpayers declaring more than $330 billion of assets so far. President Joko Widodo has cited higher tax revenue as the key to boosting infrastructure spending and growth. But if the amnesty is to avoid being just a oneoff windfall, Indonesia needs to improve a tax collection ratio well below many of its peers, international agencies and local officials have said. To that end, Indonesia’s finance minister Sri Mulyani Indrawati has set up a special tax reform team to boost collection. It faces an immense task in a country where tens of millions of people remain outside the tax system. –CB Report

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philippines to ban raw minerals, encourage domestic processing he Philippines may consider banning exports of raw minerals to encourage domestic processing and boost the value of shipments, an environment official said, as the government looks to extract more from its mining sector after a crackdown.

Nickel prices rose more than 1% on the potential for supply disruption from the world’s top nickel ore exporter, but miners said following in the footsteps of Indonesia would not be viable without big government incentives. Previous governments in the Philippines have supported calls to spur domestic processing of raw minerals but earlier efforts in Congress to enact appropriate laws have failed to take off. “It is one of the things we are considering for any mine that we think should remain operating,” Environment and Natural Resources Undersecretary Maria Paz Luna said. “In the long term that will help our economy because that will increase the value of the products,” she said, adding that any ban would have to be considered by the entire government.

Mining has come into sharp focus in the Philippines in recent months after Environment Minister Regina Lopez ordered the closure of more than half of the country’s mines to protect watersheds, prompting an industry backlash. –CB Report

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indonesia tax amnesty nets $330 billion

Thursday March 30, 2017

WELLINGTON

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ew Zealand is losing more than $700 million a year as a result of proTit shifting schemes by multinational companies, a new study has found.

The Tigure is more than double the $300m estimate given this month by ministers Judith Collins and Steven Joyce, when they announced proposals to crack down on tax-avoiding multinationals.

The study, carried out by the UKbased Tax Justice Network using

2013 data, found global losses as a result of proTit shifting amounted to about US$500 billion ($711b) a year.

The organization describes proTit shifting as the process of companies moving proTits from their subsidiaries in higher-tax countries – where the real economic activity takes place – to other subsidiaries in tax havens. This is typically achieved by the company setting up internal trades which exploit international tax rules to move taxable proTits from one jurisdiction to another.

In response to questions, a statement from Revenue Minister Collins said the $300m Tigure was based on information Inland Revenue had compiled through tax returns, investiga-

tions and surveys of companies operating in New Zealand. She said it was more detailed and speciTic to New Zealand than the Tax Justice Network’s $700m estimate. “The OECD maintains that estimating the revenue impact of BEPS [base erosion and proTit shifting] is difTicult from a global perspective,” said Collins. “The best source of information concerning the loss of revenue to BEPS in any country is the revenue authority in the jurisdiction itself.” She said the three BEPS consultation papers released by the Government this month were an important part of the solution, as was New Zealand’s adoption of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS.

germany to go for ‘carbon tax’ in g20

G BERLIN

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ermany will use its G20 Presidency to nudge world leaders towards a global price on carbon, according to its director general of energy policy.

Thorsten Herdan said that the world can’t stabilize CO2 emissions without making polluters pay.

Herdan, of the Federal Ministry for Economic Affairs and Energy, said if renewables got cheaper still,

the market would respond by dropping the coal price more.

Some of President Trump’s advisers have argued that any carbon price should be Tixed at zero to reTlect the beneTits of fossil fuels.

But German Chancellor Angela Merkel is expected to try to persuade President Trump that the world is moving towards clean energy. It will be presented at the G20 in Hamburg in July, when climate change and sustainable development will be among a handful of major themes. The G20 is the central

forum for international cooperation on economic issues. Its member countries account for three-quarters of global trade, and house almost two-thirds of the world’s population. The agenda appears to offer a direct challenge to President Trump’s ‘America First’ credo. The symbol of the meeting is a reef knot, to emphasise the interconnectedness of peoples. The text says: “The digital age and the globalised world are marked by increasing diversity and complexity. “The world is a world of ever-closer connection. It is

a challenge for policy makers, but it also expands their possibilities for action.” The agenda re-afTirms the commitment made by all G20 members in Paris in 2015 to keep global warming signiTicantly below 2°C and to pursue the UN’s global goals for sustainable development.

The US Congress has resisted a federal carbon tax until now. A small group of veteran Republicans recently pressed the idea with White House officials, but it received a hostile response from many Congressmen.

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Report offers plan for economic growth of Pakistan Thursday March 30, 2017

Lahore

LAHORE: The Institute for Policy Reforms (IPR) has offered a reforms plan to enable Pakistan’s economy to catch up with the prosperous Western countries. A comprehensive report issued on Monday sets forth a practical plan of action for achieving rapid economic growth. “Examples of other countries show that this can be done,” it said.

The report suggested that Pakistan must increase the government revenue to enable it to provide public goods and to reduce external borrowing. “Steps are needed to increase domestic savings. High growth economies consistently invest over 25% of their GDPs, including 7% on infrastructure. They spend another 8% on health and education,” it said.

fto adjourns hearing of M/s Marryam tahir packages case LAHORE

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he Federal Tax Ombudsman (FTO) has adjourned the hearing of case Tiled by M/s Marryam Tahir Packages (Private) Limited against Corporate Regional Tax OfTice (CRTO), Zone-II Lahore until the next date.

According to the details, FTO Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the Corporate Regional Tax OfTice (CRTO), Zone-II had failed to release the tax refund of the last three years claimed by the company.

He said that the RTO collected excessive tax from M/s Marryam Tahir Packages during the last two years.

He approached the ofTicer con-

funds approved for new trade terminal construction at wagah border new terminal at Wagah border is being constructed for the facilities of traders of Pakistan. The Federal Board of Revenue has approved the funds for the construction of new terminal to promote the facilities between Pakistan and India.

According to sources of Customs Today, District Coordination Officer Lahore will acquire the land for this purpose. Sources of Customs Today said the DCO Lahore will acquire the land of 10 acres at Wagha border under Section 4.

The capacity of the old trade terminal is not enough to accommodate the trade activities at the Wagha border. During the arrival and departure of Sikh pilgrims, heavy rush creates problems for customs officials in clearance. –M Imran Mehar

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cerned many times for issuance of refunds but the CRTO ofTicials did not pay the refunds after the passage of reasonable time.

At the end, the company decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the CRTO to clear the refund claims.

The counsel further said that CRTO should refund the excess collection in wake of taxes by the end of Tinancial year but the situation is quite otherwise. Delay in issuance of refunds put burden on the taxpayers, he said, adding that the CRTO Lahore should make audit of the cases and release the extra amount collected by it from the taxpayer.

On the other hand, counsel for CRTO argued that the appellant M/s Marryam Tahir Packages Private Limited has not submitted all record in the ofTice on which basis it is claiming for refunds.

customs ASo seizes nDp Honda civic, Vitz from gulberg

LAHORE

M HAYAt

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ustoms Anti-Smuggling Organization conTiscated two non-customs paid vehicles

customs court hears 15 important cases; adjourns most of them

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he Special Court of Customs Taxation and Anti-Smuggling heard 15 important cases and adjourned most of the cases until next hearing.

About 15 cases of different types, including pre-arrest bail pleas Tiled by different accused, were scheduled for hearing on Tuesday. The court adjourned bail pleas of Azhar Mehmood and Shahbaz until next hearing. The cases, including tax evasion, customs, smuggling and narcotics, were scheduled for the day. A

case of Tariq Kazmi, who is allegedly involved in mobile smuggling, was also scheduled for the hearing. The cases of Lahore, Gujranwala, Sialkot and Jhelum were scheduled for the day. Meanwhile, The Special Court of Customs Taxation and Anti-Smuggling Organization adjourned the hearing of a suspect allegedly involved in Sales Tax evasion. Wamiq Zaka was arrested by the Federal Board of Revenue (FBR) Inland Revenue (IR) following the charges of huge Sales Tax evasion. –CB Report

from Gulberg and Shalimar Town.

It was reported that Customs ASO teams in two separate operations intercepted two vehicles and conTiscated the same on the owners’ failure to produce legal clearance documents.

The sources said that the ASO car cell conTiscated Toyota Vitz 4399 /

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lEB 2006 at a picket near Shalimar Town from one Khuram.

It was said that the customs authorities demanded legal clearance documents from the owner but he failed to produce any required documents.

In another operation the customs ASO seized Honda Civic LWJ / 95 from one Shahid Butt near Saddique Trade Centre.

The source said that the customs authorities on suspicion chased the Honda Civic and stopped it near Saddique Trade Center where on checking the customs authorities confirmed that the car was illegally imported and being played on the city roads.

The customs authorities Tinally detained the car and impounded afterwards after being fully satisTied that the car was non-customs paid.

The owner of the car Shahid Butt told Customs Today that he had to buy the car in order to replace its parts with his burnt out car.

piAf welcomes proposed relief from fBR akistan Industrial and Traders Associations Front (PIAF) is pleased to learn that Federal Board of Revenue (FBR) is planning to give some incentive, like tax credits, to new and existing filers of income tax returns to ensure timely return filing and encourage compliance.

PIAF Chairman Irfan Iqbal Sheikh, Senior Vice Chairman Tanveer Ahmed SuTi and Vice Chairman Khawaja Shahzeb expressed these views in a meeting here Tuesday.

They said there is a dire need to give some kind of incentives to new and regular Tilers in the form of tax

credit for Tiling returns within the prescribed time period, this thing will encourage the new comers who want to come in tax net.PIAF ofTicebearers also urged the FBR must focus on controlling under-invoicing, curbing smuggling and expanding the tax net. –CB Report

pcA unearths Rs 41,965 duty evasion by M/s Mani enterprises

D LAHORE

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irectorate of Customs Post Clarence Audit (PCA) has summoned the management of M/s Mani Enterprises in duty and tax evasion of Rs 41,965 by on the import of tarpaulin.

According to the 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 that inadmissible concession of sales tax and value added sales tax under the SRO (1125)/2011 dated 31.12.2011, wrongfully availed on the import of tarpaulin i.e. sun shedding which is speciTically excluded from that ambit of said SRO and hence was not entitled for such beneTit under the said SRO. 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 Rs 41,965 sales tax, additional sales tax and income tax due to wrongful, concession under the SRO I 125(D/2011 dated 31.12.2011.

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Port adds container service WILMINGTON: North Carolina Ports announced a partnership with THE Alliance for the addition of the EC2 all-water Asia-U.S. East Coast container service. The weekly service will begin calling on Wilmington’s port in May. “Our comprehensive port coverage continues to improve at North Carolina Ports,” Executive Director Paul J. Cozza said. “This new partnership with THE Alliance, a recent announcement with the 2M Alliance, plus our existing services, provide regional importers and exporters with a plethora of options through our Port of Wilmington.”

THE Alliance includes container carriers NYK Group, “K” Line, MOL, Yang Ming and HapagLloyd. “Today’s announcement will help further establish the Port of Wilmington as a major gateway for the Carolinas,” Chief Commercial Officer Greg Fennell said.

three ships take berth at port Qasim hree ships C.V Tianping, C.V Maersk Kensington and M.T Mid Fortune carrying containers and chemical were allotted berths at Qasim International Container Terminal and Engro Vopak Terminal respectively on Tuesday.

Meanwhile two more ships M.T Brizo and M.V Fu Ming with 63,322 tonnes Furnace oil and 43,999 tonnes coal also arrived at outer anchorage of Port Qasim (PQ) during the same day.

Berth occupancy was observed at the port at sixty seven percent on Tuesday where a total of ten ships namely, Tianping, Maersk Kensington, AlManamah, MSC Al-Ghero, Spectum-5, Ocean Quartz, Chance, Gaslog Glasgow, Mid Fortune and Glorious were occupied PQA berth to load/offload Containers, Sand, Slag, Soya Bean Seeds, LNG, Chemicals and Diesel oil respectively during last 24 hours.

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Cargo handling remained upward trend at the port on Tuesday where a cargo volume of 144,854 tonnes, comprising 87,387 tonnes import cargo and 57,467 tonnes export cargo inclusive of containerized cargo carried in 4,254 containers (TEUs) 1,347 imports TUEs & 2,907 TUEs exports) was handled during last 24 hours.

Two ships, LNG carrier Gaslog Glasco and Oil Tanker Glorious sailed out to sea on Wednesday morning, while three more ships Ocean Quartz, Maersk Kensington and Mid Fortune are expected to sail on same day.

Three ships M.V Baltic Winter, M.T YM Miranda and M.T Harmony-1 carrying Project Cargo, Chemicals and Furnace oil are expected to take berths at Multi Purpose Terminal, Engro Vopak Terminal and Fotco Oil Terminal respectively on Wednesday. –CB Report

Ports & Shipping

king Abdullah port to sponsor Sea Asia 2017 in Singapore WASHINGTON

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ing Abdullah Port has signed an agreement to sponsor Sea Asia 2017, the event’s sixth edition, to be held on April 25-27 in Singapore. The event will be part of Singapore Maritime Week and will host logistics experts and inTluential leaders in the maritime transport industry. Long a platform for top-tier players in transport services, trade, shipping and ports worldwide, Sea Asia offers an opportunity to explore business prospects and unveil new products and services. Sea Asia 2017 is co-organized by Seatrade and the Singapore Maritime Foundation. King Abdullah Port’s sponsorship announcement coincides with King Salman’s Asian tour. Accompanied by a number of ministers and ofTicials, King Salman is expected to conclude multiple investment agreements during his visit, which will contribute to the

Kingdom’s global economic status.

“The announcement of King Abdullah Port’s sponsorship of Sea Asia 2017 at the time of the Asian tour of King Salman, may Allah protect him, emphasizes the overall goals of the King’s visit in this part of the world,” said Abdullah Hameedadin, managing director at the Ports Development Company, owner and devel-

oper of King Abdullah Port. “This fortunate conTluence of events bolsters the visibility and reputation of the port’s contribution to the economic development of Saudi Arabia through its role in the expansion of trade between the Kingdom and the rest of the world, while beneTiting from the port’s strategic location on the Red Sea coast.”

Thursday March 30, 2017

karachi port trust shipping intelligence report he Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours on Tuesday ALONG SIDE (Bulk Oil Pier) OP-III Al Mahboobah D. Chemical GAC 12/03/17 ALONG SIDE (East Wharves) 5 Polaris Melody D. Seeds NOrthsatr 10/03/17 10/11 Pacific Award D. Coal Bulk-Sh. 12/03/17 11/12 Star Pisces D. Coal OC.World 13/03/17 15/16 Gh Seabiscuit D. Meal WMA Shipcare 06/03/17 ALONG SIDE(P.I.C.T) 6/7 Wide India D. L. Cnt. Not Provided 13/03/17 8/9 X-Press Kailash D. L. Cnt. Not Provided 13/03/17 ALONG SIDE (PDWCP) Berth Vacant. ALONG SIDE (West Wharves) 21 Da Yu Xia D. Gen. Cargo Sea TradeSh. 12/03/17 24 BBC Switzerland D. Gen. Cargo Gulf Maritime 14/03/17 25 Pacific Trust L. Urea Bulk-SH. 01/03/17 ALONG SIDE (K.I.C.T) 26/27 Cma Cgm Eiffle D. L. Cnt. Not Provided 11/03/17 28/29 YM Orchid D. L. Cnt. Not Provided 14/03/17 EXPECTED ARRIVALS: CONTAINER (GEARLESS) Cosco Haifa COSCO 14/03/17 Not Sched 600 Cnt. 600 Cnt. –CB Report

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cayman port sued over crushed reef T

WASHINGTON

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he owners of a cargo ship which crushed a sizeable portion of reef off Eden Rock in December have sued the Cayman Port as they claim the authority is entirely to blame for their 100-metre, 3,000-ton cargo vessel running aground and then causing the damage. The Saga ran aground in George Town Harbour and government officials said at the time that its owners, Risley Ltd, admitted responsibility. However, they now say that the port was at fault, not their captain. In the writ filed in the Grand Court at the end of last month by local attorneys Campbells on behalf of Risley, the owners state that the damage happened while the ship was “under the direction” of the port authority staff. The owners are claiming

damages and a contribution from the authority for the ship’s liabilities to the Department of Environment for the reef damage under the National Conservation Law. The owners state in the legal action that the port is liable for several reasons, including its general management failures regarding day markers, inadequate and missing buoys and lighting, a lack of reef markers, as well as failures in safety supervision for ships in and about the harbour. They also claim speciTic failings on the day the ship ran aground and say port staff instructed the Saga “to stop her engines when she was attempting to reverse away from the initial site of the incident under her own power, causing her to lose steering in windy conditions and to exacerbate the seriousness of the incident as she was blown further on to the reef”. The writ claims that the port directed the tugs to tow

the Saga sideways across a wider area of the top of the reef than had been affected by the initial incident, and with the loss of steerage the situation was exacerbated. The owners also made the Tinal damning allegation that the port had failed to ensure that users could navigate the George Town harbour safely.

At the time of the incident the port ofTicials had said the captain had not sought their assistance when he miscalculated his position and as he turned the ship, the captain steered the bow into the reef, where the vessel became stuck. At that point, the port stated, that two tug boats responded from the port and pulled the Saga from the reef.

The owners of the Saga had engaged Polaris Applied Science, the same Tirm that worked on the damage caused to the reef off Seven Mile Beach by billionaire Paul Allen’s luxury yacht last year, to assess the

damage and work out if it was possible to repair any of the damage.

Meanwhile, The average size container vessels serving the Chittagong port is 2500 TEUs to 3000 TEUs having draft of 9.1 meters (more modernised sea ports are found handling container vessels of 5000-18,000 TEUs) In Bangladesh, both export and import and regional trade (such as for Nepal, Bhutan, and northeastern Indian states) are handled through two seaports (Chittagong Port and Mongla Port), ten land ports ((Benapole, Burimari, Akhaura, Sonamasjid, Hili, Banglabandha, Teknaf, Bhomra, Bibirbazar, and Nakugaon) and three international airports (Hazrat Shahjalal International Airport, Dhaka, Shah Amanat International Airport, Chittagong, and Osmani International Airport, Sylhet). According to sources, the seaports handle 87 per cent of Bangladesh’s trade, while land ports handle 13 per cent.

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Customs Intelligence seizes non customs paid tyres during raid FAISALABAD: The Customs Intelligence and Investigation has seized non duty paid tyres worth Rs725,000 involving duty and taxes to the tune of Rs407,834. According to sources, the customs staff after receiving credible information raided godown of M/s Pak Hakeem and Company. During raid Customs Intelligence team found 20 tyres, Green Dragon brand made in China. These tyres were being transported from Lahore to Faisalabad. The team asked Muhammad Ilyas (manager of the bus stand) to produce legal documents regarding possession of tyres.

Thursday, March 30, 2017

CUSTOMS BULLETIN

customs preventive impounds worth Rs226.665m more goods & vehicles ISLAMABAD tARiQ DeRYA

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he Preventive Division of Model Customs Collectorate (MCC) impounded smuggled goods and vehicles with more revenue of Rs226.665million and made 39 more seizures during eight months of current Financial Year (July to February) 2016-17 against the same period of corresponding year FY2015-16.

According to Arslan, Collector MCC Islamabad, during the current Tinancial year, the above said Tigures showed that performance of Customs ASO Islamabad was better than corresponding year FY201516. During above said period of current Tinancial year, the ASO made 254 seizures whereas the ASO made 215 seizures during the last Financial Year15-16. The ASO seized smuggled goods worth Rs176.721million during FY16-17 while it seized smuggled goods worth Rs94.617million in same period during the corresponding year.

The ASO Islamabad seized a number of 66 Non-Duty Paid vehicles valued Rs115.375million during FY1617 whereas it seized six NDP vehicles worth Rs13.014million during same

period of corresponding year FY1516 adding the ASO impounded 107 offending vehicles (vehicles used for smuggling) valued Rs115.000million

during eight months of current Tinancial year whereas ASO seized 88 offending vehicles worth Rs72.800million during corresponding Financial

Year 15-16. According to collector MCC Islamabad, the ASO Islamabad made seizures worth Rs407.096million during the current Financial Year

2016-17 whereas the ASO made total seizures of vehicles and goods worth Rs180.431million during corresponding year 2015-16.

poppy crop spread over 699 kanals in kp areas destroyed PESHAWAR

iRfAn BAHADuR

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o control the growing ratio of drug addiction, the political administration of lower Mohmand sub-division destroyed the poppy crop spread over 699 kanals in different areas of Prang Ghar and Ambar tehsils on Wednesday.

Political Naib-Tehsildar Muhammad Riaz Khan told local

journalists that the administration has started the eradication campaign against poppy with the help of the local elders and support of a heavy contingent of Levies and Khassadar forces in Dabar, Tatareen areas of tehsil Prang Ghar and Shati meena, Sheen Kamar,Sadiq Abad, Zawani Meena, Shah Khan, Sor Tangi,Snagar, Olai Shah and Shah Mat Kor of Ambar tehsil in lower Mohmand region.

“We have destroyed a total of 518 kanals’ poppy crop in the entire Prang Ghar tehsil including 429 kanals at Dabar and 89 Kanals at Tataren” , said Khan. Assistant

Political Agent Naveed Akbar Khan said the administration had asked the tribesmen to voluntarily eradicate the poppy crop. He said the tribal elders were held account-

able to mobilize the tribesmen to ensure eradication of poppy crop.

He said they had started the campaign from the Tirst of week of February on the directives of Po-

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litical Agent Mahmood Aslam Wazir in all the areas of lower Mohmand. Political Naib Tehsildar SaTi Muhammad Miraj Khan said that last night at 9: 30 pm unknown miscreants attacked a cell tower, however Levies and Khassadar force on duty responded effectively, and Tiring is still being exchanged but no loss of life or property has been reported so far.

Later, the security forces and Khasadar personnel cordoned off the area and began a joint search operation in the adjoining areas but no arrest was reported till the Tiling of this report.