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Karachi, Fri March 3, 2017

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inance Minister Ishaq Dar directed Secretary Finance Tariq Bajwa and Chairman Federal Board of Revenue Dr. Muhammad Irshad to take all stakeholders including economic experts, chamber of commerce and industries, business and traders community on board while finalizing the budget 2017-18. Federal

minister Ishaq Dar was chairing a high level meeting to review the progress of preparations for the upcoming budget for financial year 2017-18. The Finance Secretary Tariq Bajawa provided an update to the minister on the state of preparations for the budget and coordination with different ministries and departments in this regard.

He said a proper mechanism for in depth liaison with these stakeholders had already been devised.

He said all budget activities would be undertaken

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according to the timelines given in the schedule shared with the finance minister in the previous meeting on the matter. The finance minister said that, as always, the PML-N government would accord top priority to the well being of the people in the budget for financial year 2017-18. He added that the budget would also focus on measures or further improving ease of doing business and increasing financial inclusion in the country.

Multan Customs taking effective measures to curb smuggling: Kanjoo

Govt should announce concessions for regular taxpayers: Khalid Malik

Pakistan plays vital role in promoting trade with Central Asian states: Afzal

NAB arrests accused of cheating public at large

FBR should adopt strict laws against tax evaders: FTO Abdul Rauf Ch

Customs I&I Multan is working hard to prevent smuggling from Baluchistan | See pAge 02 |

SVPandChairmanDiplomaticCommittee ofICCIKhalidMalikhassaidthattheprocess | See pAge 03 |

Secretary for Finance Rana Afzal on said that Pakistan could play vital role | See pAge 04 |

NAB arrested Director of M/s AWJ Securities private limited HassanWaheed | See pAge 14 |

FTO Abdul Rauf has said that the country’s tax system needs reforms & FBR | See pAge 16 |

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DG Valuation revises customs value of caustic soda flakes Friday, March 3, 2017

National

KARACHI: The Directorate General of Customs Valuation revised the customs value of caustic soda flakes through Valuation Ruling No 1052/2017 under Section 25A of the Customs Act, 1969.

According to details, the custom values of the caustic soda flakes were earlier determined vide Valuation Ruling No 852/2016 dated 16.05.2016. There were several representations from different traders and trade bodies i.e. Pakistan Chemicals and Dyes Merchants Association (PCDMA) and Caustic Soda Manufacturers Association (CSMA), for determination of customs value of the Caustic Soda flakes a fresh.

Multan customs taking effective measures to curb smuggling: kanjoo

FAISALABAD

MULTAN

NAeeM SheIkh

IMrAN ALI

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he Federal Investigation Agency (FIA) has arrested accused involved in manufacturing and selling of spurious medicines. Sources told Customs Today that Federal Investigation Agency’s team conducted a successful raid along with Drug Inspector at Alfateh Shopping Mall Pharmacy Kohinoor Road and sealed un-registered drugs shop namely Centrum Silver. The team recovered huge quantity of fake and forge medicines during the raid on the above mentioned compound. The accused person who was identified as Muhammad Ayub failed to produce any legal documents regarding possession of above said medicines. A First Information Report (FIR) has been registered under Section (U/S), 23/27 against the arrested accused person, while further investigations are still underway till the filing of this report. FIA Deputy Director Syed Imam Zaidi said that FIA authorities already enhanced their raids on the shops which are selling fake and forge medicines. He said that government directed FIA to take measures to curb selling of fake and forge medicines.

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ustoms Intelligence and Investigation Multan is working hard to prevent smuggling from Baluchistan and other provinces by enhancing their antismuggling activities.

These views were expressed by Deputy Director Abdul Mueed Kanjoo told this while talking to Customs Today in an interview. He told that his department has played signiRicant role in restraining smuggling in the region by devising effective anti-smuggling strategy.

He said that Customs Intelligence and Investigation Multan jurisdiction includes Dera Ghazi Khan, Sadiqabad and Multan region which comprised of almost 40 % Punjab province and they have huge responsibilities to protect their provincial boundaries from menace of smuggling.

Customs Intelligence Multan is combating hard against the smuggling in their region by showing zero tolerance police against smuggled goods and vehicles. Deputy Director told that Customs Intelligence and Investigation is making continuous efforts for the elimination of smuggling in the region by motivating their Rield intelligence staff for their crackdown.

He believed that Customs Intelligence Multan showed outstanding

Faisalabad FIA arrests accused manufacturers of spurious medicines

performance by taking timely action against smuggled goods and vehicles in the region. The number of seizure cases detected by Customs Intelligence and Investigation is also reRlecting the performance of the Field Intelligence Unit. He told that Customs Intelligence and Investigation Multan Range OfRice has detected 45 various seizure cases of

worth Rs93.60 million and unearthing duty taxes of Rs53.60 million during their anti-smuggling drive in the territory in last three months. Customs Intelligence has seized 31 vehicles of Rs54.10 million in less than months after taking his charge as deputy director of Multan OfRice from 16th December to onwards Customs Intelligence and

Investigation Multan Range OfRice also seized various goods and articles of worth Rs39.5 million during the same period. He said that Customs Intelligence and Investigation is conducting anti-smuggling operations to prevent smuggling and protecting legal business of the country due to their improved action strategy in the region.

customs to pay rs300m to punjab leather exporters P

ISLAMABAD

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akistan Tanners’ Association Northern Zone Chairman Azam Malik said that exporters of Lahore and Multan are badly hit by liquidity crisis which is worsening due to held up of their funds in duty drawback refunds. Respective collectorates are unable to release pending cheques against sanctioned claims of duty drawback.

“It is irony of fact that in the chase of unrealistic revenue targets the duty drawback claims of exporters are being held up in the system”, Malik said. The PTA (North) chairman said that association has numerous meetings with the collectors concerned but of no use. Their chase of un-realistic revenue targets disabling them to release duty drawback claims for which no authority in Federal Board of Revenue (FBR) is holding them responsible.

Installation of expensive online

web-based clearing systems could not enable FBR to expeditiously release exporters’ money which is being held up to meeting the ‘so-called’ revenue targets.

Presently, an amount more than Rs300 million is lying pending at Collectorate of Customs (Preventive) Lahore on account of duty drawback payable against consignments dispatched for exports from Lahore airport during the past one year.

Explaining the scenario, Malik

explained that despite expensive cost of air freights, exporters of leather in Lahore prefer dispatching leather consignments for exports through airport, being an efficient way to meet the strict deadlines of customers abroad importing leather from Pakistan. At the same time all Lahore-based leather manufacturing units are importing chemicals and spares from Karachi sea port and paying all duties and taxes in Karachi and this revenue should be considered for

Lahore-based units when fixing revenue targets.

Here, it is a disappointing fact for the leather exporters of Lahore which are being asked to route their imports to Lahore dry ports in order to generate revenue for Lahore Collectorates. He expounded that in the absence of efRicient consignment handling system at Lahore dry ports, it is unviable for a leather manufacturing-exporting house at Lahore to arrange imports through Lahore dry ports.

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Deputy Director Riaz Hussain reshuffles three employees FAISALABAD: The Directorate of Customs Intelligence and Investigation Deputy Director Riaz Hussain has transferred three customs employees, including one intelligence officer and two sepoys, to Customs Sara-e- Muhajir. According to the details, Intelligence Officer Mansoor Nasir, who was performing his duties in Field Investigation Unit (FIU) Khushab, will assume the charges of his new assignment in Intelligence unit of Sara-e- Muhajir.

Meanwhile, sepoy namely Fakhar Abbas of Customs Intelligence Faisalabad and sepoy Muhammad Shahbaz who was performing duties in Customs Intelligence and Investigation Faisalabad and Multan and now they are transferred to field unit Sara-e-Muhajir.

Friday March 3, 2017

National

Sialkot customs to auction impounded trucks, goods

govt should announce concessions for regular taxpayers: khalid Malik

SIALKOT

SALeeM AwAN SheIkhu www.customsbulletin.com

he Auction Committee of the Model Customs Collectorate (MCC) Sialkot will hold an auction of nonduty paid three trucks, including one dumper truck and another vehicle, and other confiscated items like cumin seeds, Rani Juice and cloths worth millions of rupees on The auction includes trucks and the said items impounded by the Anti-Smuggling Organization (ASO) on the strict directions of Collector of MCC Sialkot Ahmed Reza Khan and ASO Incharge Assistant Collector Ali Mohatashim Minhas. The vehicles will be auctioned off in the presence of Chairman Auction Committee Deputy Collector Muhammad Hanif and Member Auction Committee Babar Malik.

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Faisalabad FIA apprehends human trafficker FAISALABAD

NAeeM SheIkh

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he Federal Investigation Agency (FIA) Faisalabad has arrested a human trafficker named Zulfqar Ali during an action. The suspect belongs to tehsil Kallur Kot, district Bhakhar. Sources told Customs Today that FIA Deputy Director Syed Imam Zaidi and Sub-Inspectors Taimoor Haider and Abbas Bajwa conducted a raid over the whereabouts of the accused who running an illegal business of sending innocent people abroad after gulling amounts from them. The accused also gulled Rs350000 from complainant for sending him to Malaysia. The FIA recovered original Pakistani passport and some copies of other passports from his possession.

Checking the mobile phone of the accused, scanned copies of FIRs, affidavits, CNICs of different people, sticker-visas of Malaysia.

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ISLAMABAD

M FAIZAN

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enior Vice-President and Chairman Diplomatic Committee of Islamabad Chamber of Commerce and Industry (ICCI) Khalid Malik has said that the process of preparation of budget proposals will be started soon. The whole taxation system needs review and amendments.

During an exclusive interview with Customs Today, Malik said that the government continuously squeezing existing taxpayers and putting pressure of tax revenue on the shoulders of the taxpayers. He said that government should adopt business friendly policies to expand tax net. The government should announce some concessions for those taxpayers who have been paying regular taxes for the last two to three years to get better revenue collection results. Now the income tax team of FBR should concentrate to Rind out new taxpayers.

Malik said due to the current tax policies, FBR have to bring the new taxpayers in tax net. Federal Board of Revenue should review this policy with the help and coordination of business community. He said that no person become a member of any chamber if he is tax defaulters. He said that Pakistan’s exports are being declined due to the decrease in cotton production but the cotton policy is also not business friendly.

He said that businessmen are also facing some other issues like refunds, now the government is addressing them and the current country situation is also one factor which prevails. Hopefully this situation will be resolved soon.

He suggested that if government is willing to expand tax net than this job should be handed over to Chambers of the country. He said there are 62 chambers are operational in the country and if government took

Malik said that businessmen are facing some other issues like refunds, now the government is addressing them

cpI based inflation rises 4.22 pc in Feb

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ISLAMABAD

cuStoMS BuLLetIN report

www.customsbulletin.com onsumer Price Index (CPI) on year-on-year basis during February 2017 witnessed an increase of 4.22 percent as compared same month of last year. On monthon-month basis, the inRlation was recorded at 0.28 per cent in February 2017 as compared to January 2017, said Asif Bajwa, Chief Statistician Pakistan Bureau of Statistics (PBS) while presenting data of

monthly inRlation Rigures here during a press conference.

Asif Bajwa was Rlanked by Secretary Statistics Division, Shujat Ali and other high ofRicials of the bureau. According to the data, average CPI based inRlation during Rirst eight months of the current Riscal year (July-February) increased by 3.90 per cent as compared to same period of previous year. The PBS collects the retail and the wholesale prices and computes the CPI and Wholesale Price Index (WPI) on monthly basis while the

Sensitive Price Indicator (SPI) is calculated on weekly basis. In February 2017, the WPI increased by 0.47 percent while SPI decreased by 0.2 percent, according to the data. The non food and non energy core inRlation during February 2017 was observed at 5.3 percent compared to February 2016, during which it was recorded at 4.5 percent compared to January 2015. The trimmed core inRlation has been observed at 4.1 percent in February 2017 compared to February 2016, the data revealed.

them in conRidence, they can help to increase the tax net.

He blamed the field tax officers for involvement in corruption, alleging that they takes bribe and didn’t bring the people in tax net.

This practice should be changed and the law of accountability should be followed strictly by the FBR. He said through China Pakistan Economic Corridor, almost $46 billion foreign investment is coming to Pakistan.

Secp, SBp moves to tackle illicit lending high-powered body of two apex financial and banking regulators the Securities and Exchange Commission of Pakistan and the State Bank of Pakistan on Wednesday decided to seek cooperation of law enforcement agencies in curbing unregulated lending operations, particularly at the country’s stock exchange where certain brokers are said to use investors’money in illegal badla financing.

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NESPAK secures business worth Rs 8.1 billion LAHORE: NESPAK has generated an income of Rs. 8.1 billion as fee secured through various engineering consultancy related jobs in Pakistan and abroad till the year ending June 2016. After expenses of Rs. 6.3 billion, it earned a profit of Rs. 1.8 billion during the year. The dividends stood at Rs 100 million while NESPAK deposited taxes worth Rs. 452 million in the government exchequer, it was learnt during a corporate presentation given to media persons here at NESPAK House, Lahore on Wednesday. It was told in the presentation that NESPAK is a multi-disciplinary International Consultancy Organization with its Headquarters in Lahore.

Friday March 3, 2017

Business

pak playing vital role in promoting trade with cAS ISLAMABAD

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arliamentary Secretary for Finance Rana Muhammad Afzal on Wednesday said that Pakistan could play vital role in promoting trade activities with Central Asian states. Talking to a private news channel, he said that Pakistan was fully capable to provide transit facility to other countries with better road links.

Rana Afzal said that Prime Minister Nawaz Sharif had played vital role in hosting Economic Cooperation Organization summit in Pakistan. Pakistan could play a key role due to connectivity with regional

pak-uS partnership promotes agri exports ISLAMABAD

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he United States Agency for International Development (USAID), through the US-Pakistan Partnership for Agricultural Market Development has facilitated the participation of a Pakistani delegation of agricultural producers and exporters in Gulfood Expo 2017.

This annual event is being held in Dubai from February 26 to March 2, 2017. Participation by the 15-member delegation is part of a broader effort by USAID to expand market opportunities for Pakistan’s agricultural products.

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countries, he added. To a question, he said that stability in Afghanistan was in the interest of the region. To

another question, he said that China Pakistan Economic Corridor was in favour of both the countries. He said

that trade with regional countries would help beneRit the people of all the countries. Replying to a question he said that decision for holding Pakistan Super League Rinal match in Lahore would help promote international cricketing here. Meanwhile, Heads of states and governments Wednesday left for their respective countries after participation here in 13th Economic Cooperation Organization (ECO) Summit.

President of Turkey Recep Tayyip Erdogan, President of Iran Hassan Rouhani, President of Turkmenistan Gurbanguly Berdimuhamedov, President of Azerbaijan Ilham Aliyev, President of Tajikistan Emomali Rahmon and Prime Minister of Kazakhstan Bakytzhan Sagintayev were seen off at the Noor Khan Airbase by ministers and high ofRicials.

eco plans implementation key to regional prosperity: halil Ibrahim S

ISLAMABAD

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ecretary General of Economic Cooperation Organization (ECO), Halil Ibrahim Akca, Wednesday stressed the need to implement its agenda and plans to achieve the shared goals and objectives of prosperity in the region.

In his welcome remarks in the 13th ECO summit, he said the summit was of prime importance as it offered a great opportunity to the ECO members to review the

progress made so far and guide it in its future endeavours.

Congratulating Prime Minister Muhammad Nawaz Sharif on his unanimous election as Chairman, he hoped that under his able leadership, the ECO would progress further in implementing its agenda for regional prosperity and stability.

All the ten member states including Azerbaijan, Kazakhstan, Kyrgyzstan, Iran, Tajikistan, Turkey, Turkmenistan, and Uzbekistan besides a special representative from China participated in the summit.

Representative of Afghanistan’s

president also attended the summit.

Highlighting the potential and importance of the ECO region, he said the population of the region had reached 471 million which had witnessed 30 % growth as compared to 20 % growth of the world population during the last 15 years. Meanwhile he said the aggregate GDP (Gross Domestic Product) had touched US$ 1795 trillion with per capita income close to US$ 4000. He maintained that the ECO aggregate GDP growth in relation to the world witnessed upward trend as it moved from 2.1 % (in the year 2000) to 2.63 % in 2015.

eco provides trade opportunities for entire region ISLAMABAD

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ormer Ambassador Fauzia Nasreen Thursday said that the ECO had provided a platform to the member states for improving development and promote trade and investment opportunities for the entire region.

She said “we are expecting positive outcomes of the Economic Cooperation Organization (ECO) summit in coming times”. Strong trade relations will definitely support us to improve our exports, she added. Former Ambassador observed high level participation in ECO summit was vital for regional connectivity.She further said, the member states of ECO agreed to ensure continued and enhanced cooperation in the areas of common interest through effective, timely and result-oriented projects and programs.

The ECO summit was significant in terms of preparing for the future needs, she said. The summit bore more relevance due to Pakistan’s commitment to pursue the China-Pakistan Economic Corridor as many countries were expressing willingness to be the part of the project, she concluded.

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pakistan Auto Show all set to begin from today KARACHI

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s many as 67 international exhibitors are coming to Pakistan to participate in the Pakistan Auto Show (PAPS), which is being held from March 3 to 5, 2017 here at Expo Center.

Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Chairman Mas-

hood Ali Khan announced the launch of PAPS 2017, at a press conference held here on Wednesday.

“Last year only six international exhibitors participated in the event, but this time the response is overwhelming. We are pleased to entertain a large complement of dignitaries from across the globe,” he said. The PAAPAM chairman said that a total of 85 local exhibitors, 17 sponsors, six universities, and 17 support organisations are part of

this show. This comes to a total of 192 exhibitors this year, as against 104 last year, he added.

He said that PAPS came into being to provide the country’s auto parts industry a platform to showcase its capability and potential to the world. “It is a three-day event with all the Auto Engineering Sectors assembled under one roof,” he added. The PAAPAM chairman said the government higher-ups, local and international buyers and man-

ufacturers, machinery manufacturers, raw material providers and service providers are expected to participate in this show.

“Based on previous estimates, this year’s PAPS is expected to draw a crowd of more than 100,000 visitors from parts manufacturers, component suppliers, auto lovers and affluent automobile buyers to get a glimpse of the latest models from the world’s leading automakers in the motor-

cycle, three wheeler, car, tractor, trucks and buses sectors,” he added.

Speaking on the occasion, PAAPAM Senior Vice Chairman Saeed Iqbal Ahmed Khan said that international visitors from Afghanistan, Bangladesh, China, Japan, Netherlands, Sri Lanka, UAE, United Kingdom and African countries have attended the past events. “This year visitors from other countries are expected as well,” he added.

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KARACHI

MuBeeN huSSAIN www.customstoday.com

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irectorate General of Customs Intelligence and Investigation (I&I) has detected another case of heavy under invoicing at Port Qasim. According to the details, M/s Zeal Pak Cement Factory has imported 86,531 metric tons of Portland clinker and was in the process of clearing the aforesaid imported Portland clinker through four Goods Declarations. A large part of the goods has been cleared on the basis of the value declared by the importer.

In the meantime, the Directorate General of Customs Intelligence and Investigation (I&I) received information to the effect that the goods had been heavily under-invoiced.

The remaining part of the consignment was seized. In order to ascertain the actual transaction value of the Clinker, Directorate General of Customs Intelligence and Investigation (I&I) approached the Iranian Customs through Embassy of Pakistan in

Friday, March 3, 2017

Tehran and was able to get hold of the original export documents on which the actual transaction value of the imported goods had been declared. It surfaced that the actual transaction value of the goods was US$3,618,921 whereas M/s Zeal Pak Cement Factory has declared only US$1,707,431 to Pakistan

Customs and had suppressed US$ 1,911,490 by way of fabricating false invoices and other import documents.

The amount of the evaded government revenue on the impugned goods works out to Rs 47 million. In is apparent that M/s Zeal Pak Cement Factory had sent an amount of US$1,911, and 490 to Iran through illegal/non I banking/hundi channel has indulged in money laundering beside evading legitimate government revenue of Rs 47 million and submitting false/fabricated documents to banks as well as Customs.

An FIR has been lodged against the fraudulent importer. Past imports by the company are also been inn tio ansac vestigated and significant revr t l a of ac tu l e elations regarding money a h r t e n n cer tai ate ge laundering and theft of the s r a ) o I t o c & t I er n( D i re o i , r t government revenue are e a k g I n o rd i vest e clin likely to surface. and In e of th ro u g h

h valu ence oms t tellig e n I n cust s a i m as abl n o t a cus and w he Ir t n d a r e ach t in teh a p p ro expor istan k a p f ginal i o r tion y o s e s f th ansac r o t emba d l l a o h e ac tu to get been ich th h w s had n d o o o s t g en orted doc um e imp h t f o re d value decla

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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

growing acceptance of Islamic banking

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study paper issued by the International Monetary Fund has devised guidelines for the government to promote financial stability and develop Islamic banking system in the country by establishing a policy framework and environment. The fund is apparently interested in seeking a role in the Islamic banking in various Muslim countries. The Islamic banking system has a growing acceptance in various Muslim and non-Muslim nations and the international financial institutions, including the IMF, seems to be weighing options to find a role in it. According to the bank, the Islamic banking prevails in almost 60 countries of the world but there are also challenges for the financial experts and government authorities to maintain workable cooperation between the western interest-based financial system and the interest-free Islamic banking. Islam is the staunch enemy of interest-based economy and out-rightly rejects exploitation of human beings on the basis of money and all other things. It is also a test case for the country like Pakistan, which has been established in the name of Islam and its government is morally bound to establish corruption-free society. The Islamic banking system covers all the aspects of financial matters, including operations, balance sheet structures and risks which can be different from the conventional banking. The study paper emphasized the need for putting in place an environment in the first place to promote financial stability under Islamic banking.The aspects covered under the system included legal, prudential and financial safety nets as well as countering the financing of terrorism and liquidity management frameworks and money laundering. According to the paper, the senior officials of the fund admit that the Islamic banking presents an opportunity to enhance financial intermediation and inclusion and mobilise funding for economic development. However, the officials also are also wary of the complexities, challenges and risks for regulatory and supervisory authorities under the Islamic system.No doubt interest-free financial system is a something which is difficult to understand by the non-Islamic financial experts because it gives a severe blow to exploitation of human beings in any sense.

Islam advocates for fair trade and fair transactions of money without putting any extra burden on the beneficiaries.

Question of money laundering T

LAHORE

Dr AFtAB AFZAL

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he State Bank governor has told a panel of the National Assembly the other day that the central bank has never allowed citizens to transfer money abroad through legal or illegal means and buy offshore properties. He also clarified that the state agencies are responsible for the investigation of illegal financial transactions and the central bank has no mandate to act as an investigator. According to experts, the governor’s statement throws light on the inner weaknesses of the financial system which is exploited by the wiz kids in the affluent segment

of society as well as the corrupt individuals in the country. The pathetic part of the situation is that the policymakers have failed to plug lacunae in the laws governing the financial transactions.

It is the dilemma of the bureaucracy that they fix one thing to spoil another and that has been going on in the country since independence. Pakistanis are emerging as the leading investors in Dubai, Singapore, Malaysia and even in the countries like Sri Lanka and Bangladesh, but no one in the country has bothered to stop money laundering or made strict laws to stop this trend. A very prestigious family of Karachi is facing money laundering charges which was once a leading in-

vestor in the country.

As a matter of fact, the wealthy people always want to find attractive destinations to invest their money. Pakistanis have reportedly invested $6.6 billion in Dubai from 2013 to 2015, but how the money was transferred under the nose of the government agencies can be anybody’s guess. Keeping in view the dynamics of international business and trade, it is difficult if not impossible for the law enforcement agencies to stop capital flight.

But why does the country lack vision to launch investment opportunities in the country to utilize black money is such an academic question which has no easy solution. Again, the policymakers always come with solu-

tions which create more troubles than any good. The corrupt elements find thousands ways to send money abroad, but the governments seems to have only one option to legalize their assets and that is amnesty scheme.

It off and on uses this method to whiten the black money ignoring the plight and sensitivities of regular taxpayers. The State Bank governor dispelled the impression that the central bank is responsible for stopping illegal transactions. According to him, it is outside the domain of the financial system and that bank is also not involved in money laundering by itself. He says that laws are blatantly violated and the state institutions should have to act against the criminals.

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Russian economy to grow 2% this year MOSCOW: Russia’s Gross Domestic Product (GDP) is due to return to sustainable growth in 2017, according to Economic Development Minister Maksim Oreshkin. “The recent data about freight turnover, electricity consumption and other things which we see at the beginning of the year are quite positive. All this indicates that the economy has returned to growth and we will see a good performance this year,” said Oreshkin on the sidelines of the Russian Investment Forum in Sochi. “Our updated forecast will be ready in late March. We currently expect about two percent growth by the end of 2017. That is, we expect very good dynamics in the economy. We see that investment activity has increased,” he added.

The current forecast from the Economic Development Ministry implies 0.6 percent growth this year if the oil price is $40 per barrel.

tccI seeks strong trade ties with Sialkot traders SIALKOT

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he businessmen of Tokyo-Japan and Sialkot-Pakistan have stressed the need of promotion of “business-to-business” contacts between them for further strengthening the mutual trade ties.

They stated this during their mutual important meeting held at Tokyo Chamber of Commerce and Industry (TCCI) with a trade delegation of Sialkot Chamber of Commerce and Industry (SCCI) today.

Led by Khawar Sapal (Chairman SCCI’s Departmental Committee on Trade Delegations, Exhibitions and Fairs), a twelve member SCCI trade delegation

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was there in Tokyo-Japan, under the direct supervision of Trade Development Authority of Pakistan (TDAP). According to the SCCI officials, the SCCI trade delegation also participated in the awareness-raising seminars arranged by the Embassy of Pakistan in Japan and Japan International Cooperation Agency (JICA), besides, holding the Bto-B meetings with potential businessmen of Japan being held there in Japan’s Tokyo and Osaka cities as well.

SCCI officials added that this visit to Japan would help a lot the Sialkot exporters to explore, capture and tap the untapped international trade markets of Japan. Japan is an important trading partner of partner of Pakistan. However, the trade volume between Pakistan and Japan is below the potential.

In 2015, the exports from Pakistan to Japan were US$ 176 million while imports from Japan to Pakistan were US$ 1.82 billion. SCCI trade delegation’s leader Khawar Sapal, while talking to the leading Japanese businessmen at Tokyo and Osaka said that it was the high time for both Pakistan.

Friday March 3, 2017

Chambers

chinese investors keen to set up industrial park and JVs in pakistan C

ISLAMABAD

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hinese investors were keen to set up industrial park, power generation plants and joint ventures in many sectors in Pakistan as they considered Pakistan a potential market for business and investment. This was observed by Deng Jihai, Chairman, International Green Economy Association of China while addressing business community at Islamabad Chamber of Commerce and Industry. He visited ICCI at the head of a 20 member Chinese delegation and held B2B meetings with local counterparts.

The delegation was representing various sectors including power generation, biomass energy, industrial park development, agriculture, food processing, logistics, consultation services, textiles and garments, ship building, real estate, biotechnology, medical science and others.

Deng Jihai said that his Association has already brought 3 delegations to Pakistan and purpose of such visits was to study Pakistan’s market and explore opportunities for investment and joint ventures in

CPEC projects. He said CPEC summit would be held in May this year and they would present report of their visits to Pakistan to the said Summit. He said Chinese delegation members were interested in putting up industrial units of their relevant sectors in Pakistan like small and big power plants, ships construc-

tion, food processing units etc. He said ICCI should also send its delegation to China as his country offered good investment opportunities to Pakistani investors.

In his welcome address, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that CPEC project has put

Dubai chamber outlines new objectives to support growth

T DUBAI

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he Dubai Chamber of Commerce and Industry on Sunday announced key objectives outlined under its 2017-2021 strategy, aiming to boost competitiveness and growth within the private sector. The strategy aims to promote Dubai as a global business hub, create a favourable business environment and support the development of business in Dubai. Under the strategy, six initiatives were outlined to ensure that the Dubai Chamber supports the government in executing Dubai Plan 2021. These include having the Chamber enhance its international network, promote Dubai as an attractive market to establish commer-

cial and business ties and leverage its relationships to become the voice of Dubai’s business community.

Other initiatives include developing Dubai’s entrepreneurial ecosystem and providing improved services to members through innovative solutions. The Chamber is also planning to invest Dh100 million in innovation-focused projects and initiatives over the next few years, and it will continue to invest in next-generation business. The company said in a statement that Hamad Buamim, president and chief executive order of Dubai Chamber, said, addressing reporters, that the strategy also comprises several sub-initiatives including the launch of a new award and summit to recognise companies that have made the biggest contribution to the Dubai Plan 2021. This is in ad-

dition to the establishment of a specialised centre for economic research and policy.

“Dubai Chamber has studied the needs of the private sector, and developed an integrated strategy that aligns such requirements with the objectives of the Dubai Plan 2021. The strategy encompasses the vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to accelerate the emirate’s economic growth, boost the competitiveness of the private sector, and attract leading global companies to specialised sectors within Dubai,” Buamim said. He added that the Chamber is planning to strengthen its international presence in 2017 with the opening of representative ofRices in India and Brazil.

both countries on a long-term partnership and added that private sector of Pakistan was keen to enter into joint ventures with Chinese counterparts in this historic project. He said bilateral trade between Pakistan and China was growing steadily, but balance of trade was heavily in favor of China.

Australian traders investment slips again ustralian business investment has fallen for the fourth straight quarter as miners continue to cut back, but other sectors narrowly upgraded their spending plans for the year in tentative signs of recovery.Thursday’s figures from the Australian Bureau of Statistics showed investment slipped 2.1 percent in the fourth quarter to A$27.6 billion ($21.18 billion), when analysts had looked for a fall of only 1 percent. The decline was entirely driven by the mining sector where spending fell over 9 percent, even as new investment in manufacturing climbed 3.1 percent. Importantly, spending on equipment, plant and machinery did edge up in the fourth quarter which adds to expectations economic growth bounced after a shock contraction in the previous quarter. –CB Report

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Illegal money exchange sealed, one arrested Friday March 3, 2017

National customs foils bid to smuggle mobile phones at karachi airport KARACHI

MuBeeN huSSAIN

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SIALKOT: Federal Investigation Agency (FIA) team raided Sarafa Market in Hafizabad and sealed a shop dealing in money exchange, being run illegally by a local trader, Aqeel.

According to FIA Deputy Director Khalid Anees, the raid party seized Rs. 1.3 million in cash, prize bonds worth Rs. 14 million, foreign currency including Euro 9,000, UAE dirham 6,000, pounds sterling 400, Saudi riyal 6,000 and US dollars 130 from there. Some laptops were also taken into custory. He said the accused had been sent to jail, and further investigation was under way.

Additional collector Beelam issues notice to alleged vehicle smuggler C

FAISALABAD

IQrA ShehZADI

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akistan Customs has recovered several valuable cellular phones from the possession of a passenger at Jinnah International Airport (JIAP). According to the details, the staff of Pakistan Customs Preventive deputed at arrival of Jinnah International Airport Karachi during a routine checking intercepted a passenger and asked for the language search. During the search of the passenger named Mujahid, several valuable cellular phones were recovered from his language. According to the source the passenger Mujahid reached Pakistan through flight Air Arabia No 547 from Sharjah. The recovered valuable cellular phone worth 1.9 million rupees in the local market.

The case against the culprit has been lodged and remand has been sort from the court whereas further investigation is underway.

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FIA arrests human trafficker from Faisalabad he Federal Investigation Agency (FIA) arrested a human trafficker from Faisalabad city during an intelligence based operation. Deputy Director FIA Syed Imam Zaidi and Sub-Inspector Muhammad Hanif arrested a human trafficker who was identified as Arshad Jamil, a resident of Dijkot. Sources said the accused was running an illegal business of sending innocent people abroad after gulling huge amounts from them. Arshad Jamil was involved in several cases of fraud and sending people abroad by using fake and forged documents. The accused gulled Rs400000 from Asghar Ali, a resident of Jaranwala, Faisalabad, for an employment in Canada. –Naeem Sheikh

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ustoms Adjudication Additional Collector Beelam-urRamzan has issued a show cause notice to an accused in a used smuggled Toyota Hilux surf case involving Rs1.316million duty. Faisalabad Customs Intelligence and Investigation, following a tip-off, impounded used Toyota Hilux surf with Registration No: LEC-11-3777 near M M Alam Road Mainwali. The team asked the driver of the vehicle named Muhammad Jehanzeb Khan, a resident of Mianwali, to show documents regarding the legal import of the vehicle but he could not produce the same.

Therefore the officials impounded the vehicle and for-

warded the case to the Customs Adjudication for further legal action. Additional Collector Beelamur-Ramzan issued notice to the ac-

cused on the violation of Section 10-A 89(1) and 156(1) of the Customs Act-1969.However the adjudication has directed the accused

to file a reply on the next date of hearing i.e. 10 , 03 , 2017. The seizing agency has also been directed to file a reply in the case.

customs impounds vehicles worth rs 788.103m T

QUETTA

tArIQ DerYA

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he Model Customs Collectorate Quetta impounded worth Rs788.103million smuggled goods and vehicles during the Rirst half of Financial Year 2016-17. The collectorate seized 324 non-duty paid vehicles valued Rs238million during said period.

The sources disclosed that the AntiSmuggling Organization (ASO) Quetta seized 1.141237 million litres of POL products i.e. petrol, diesel, kerosene and mobil oil valued Rs64million during above said period. The ASO Quetta seized 12 bottles of foreign origin liquor worth Rs0.103million. The ASO seized a huge quantity of foreign origin smuggled goods worth Rs486million. During FY2015-16, the ASO seized 636 NDP vehicles worth Rs575million whereas the ASO seized 3.182478million litre POL worth Rs196million. It also seized miscellaneous smuggled goods worth Rs1231million during the Rirst half of FY2015-16.

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Customs court rejects bail before arrest of HSD oil smuggler KARACHI: Customs Court Judge Syed Faiz Rasool Rashidi dismissed a bail before arrest of accused Abdul Jabbar S/o Haji Abdul Rahan who had been absconder since long in a case of attempting to smuggle/non-duty paid 25,000 litres HSD oil from Hub Balochistan to interior Sindh. After the dismissal of bail application, officials of the customs authorities arrested.

During the hearing, counsel for the applicant/ accused argued that his client is innocent and was falsely implicated in the case who is ready to face trail therefore the court may grant him bail till the final disposal of this case. However the Customs Department opposed his bail application.

Ihc adjourns hearing of plea filed by M/s hasas engineering ISLAMABAD

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single bench of the Islamabad High Court (IHC) on Wednesday adjourned the hearing of a petition filed by M/s Hasas Engineering and Construction Company (Private) Limited, challenging a recovery claim made by the Large Taxpayers’ Unit, Islamabad.

Justice Aamer Farooq heard the matter and dated in office due to hearing of other cases at length. 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

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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 impugned 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.

Friday March 3, 2017

National

customs commissioner Ir files petition Sialkot to hold auction on March 13 in Shc against M/s ghani Builders & Developers pvt Ltd T SIALKOT

SALeeM AwAN SheIkhu www.customsbulletin.com

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KARACHI

M BILAL

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he Commissioner Inland Revenue Zone-1, Regional Tax OfRice-II Karachi approached the Sindh High Court (SHC) challenging impugned order of the Appellate Tribunal Inland Revenue Karachi over impugned recovery from M/s Ghani Builders & Developers Private Ltd. Counsel for the appellate stated in its income tax reference application that the taxpayer deals the business of construction of buildings etc, case of the respondent was selected for audit under section 177 of the Income Tax Ordinance 2001 and deputy commissioner IR audit-V, passed an order under section 122 (1) (5) and respondent was directed to pay impugned recovery.

He further informed the court that being aggrieved, said respondent Riled an appeal before commissioner IR appeals-IV which was rejected, therefore, respondent again Riled an appeal before the appellate tribunal IR Karachi and said tribunal passed order dated 20/01/2016, allowed relief of Rs, 150, 724, 310 instead of addition of Rs. 175, 500, 00 in terms of section 75.

Citing M/S Ghani Builders & Developers Pvt Ltd as respondent, applicant pleaded the court may set aside order of the tribunal and restore its order.

Meanwhile, M/s Kausar Automobiles Private Limited moved the Sindh High Court (SHC) against a notice for attachments of bank accounts for enforced impugned recovery by the Deputy Commissioner Inland Revenue E & C Unit-02, Zone-

IV, LTU Unit-II. Counsel for the petitioner stated in the constitutional petition that the Deputy Commissioner Inland Revenue E & C Unit-02, Zone-IV, LTU Unit-II, passed the order under Section 11 (2) of the Sales Tax Act for recovery of impugned demand of Sales Tax. Being aggrieved, the petitioner approached the Commissioner Inland Revenue AppealsIV LTU and Riled an appeal along with a stay application.

he Auction Committee of Customs Intelligence and Investigation Department Gujranwala Region will hold an auction of noncustoms paid vehicles and other items like cumin seeds, nylon ropes, tyres and cloths worth millions of rupees on March 13, 2017.

Director I&I of Department Zeba Hayee and Deputy Collector of Department Ali Zeb Khan ordered the auction. The vehicles will be auctioned in the presence of Chairman Auction Committee Assistant Director Itrat Hussian and Members Auction Committee Superintendent Tariq Rafique and Office Superintendent Sajjad Rubbani.

The auction will be held on the premises of Customs Intelligence and Investigation Department Office located at Sethi Colony Rahwali, Gujranwala Cantt.

The department concerned referred the cases of impounded vehicles and other items to the adjudication court for proceeding while the learned court announced the judgment in favour of department and authorized it to auction off the goods.

Dg Valuation revises customs values of air conditioners

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KARACHI

wAQAr AhMeD ANSArI www.customsbulletin.com

he Directorate General of Customs Valuation has revised the customs value of air conditioners through Valuation Ruling No 1053/2017 under Section 25A of the Customs Act, 1969.

According to details, Customs values of split type air conditioners were determined under Section 25A of the Customs Act, 1969, vide Valuation Ruling No.840/2016, dated 21-04-2016. Also reference values of portable air conditioners were notiRied vide VDB letter No. 75 dated 11.11.2016.

The valuation ruling required revision in line with the prevailing prices in the international market.

Therefore, this Directorate General initiated an exercise for determination of customs values of all types of Air conditioners. Meetings with stakeholders were held on 03.02.2017 and 09-02-2017. 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 showing the difference in price (excluding duty and taxes) to substantiate that the beneRit of difference in price is passed on to the local buyers.

No documents were submitted in this Directorate General on or even before the said scheduled meetings.

During the course of the meeting, the stakeholders claimed that the values of split type Air conditioners of China origin have actually reduced in the international market as compared to the values determined in the existing valuation ruling therefore, the values needed downward revision.

They were requested to submit im-

port invoices, sales tax invoices, literature, evidences and other relevant requisite import documents in support of their contentions. They did not provide any document or evidence to substantiate their contentions. Meanwhile, The Directorate General of Customs Valuation has revised the customs value of polyester Rilament yarn through Valuation Ruling No 1049/2017 under Section 25-A of the Customs Act, 1969. According to details, it was observed from import data that international trading prices of polyester Rilament yarn were on the higher side as compared with the prices of old valuation ruling issued vide no.

928/2016 dated 19-09-2016.

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Russia decreased palm oil imports by 12 percent Friday March 3, 2017

World

MOSCOW: Russia purchased 84.4 KMT of palm oil in December 2016, or 27.7% more than in the previous month (66.1 KMT), but 11% less than in December 2015. The rise in palm oil imports reversed their downward trend seen in the first months of 2016/17. In total, palm oil imports dropped almost 12% yearon-year in September-December 2016/17, to 316.4 KMT against 359.4 KMT at the same time a year earlier, reports UkrAgroConsult.

The month of December 2016 brought no drastic changes to the range of palm oil suppliers to Russia. As before, the top supplier is Indonesia (77% of total imports), but the current season features a decrease in deliveries to 244.7 KMT against 307.3 KMT a year ago.

thailand to Sell 96,000 tonnes turkey sees over $12b FDI inflow in 2016 of rubber from state stockpiles ISTANBUL

cuStoMS BuLLetIN report www.customsbulletin.com

BANKOK

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hailand, the world’s biggest producer and exporter of rubber, expects to sell 96,000 tons of the commodity from state stockpiles, an ofRicial at its rubber authority told Reuters on Wednesday. The sale is expected to fetch the government more than 6.84 billion baht ($195.43 million), the ofRicial at the Rubber Authority of Thailand said.

“We’ll hold another auction in March, where the remaining 125,000 tonnes of rubber should all be sold,” the ofRicial said.

News of the auction comes after Rlash Rloods hit its southern provinces, the main rubber-growing region, killing 99 people since December and swamping plantations at the height of the tapping season. Global rubber prices soared

Brazil prepares tax breaks for datacenters he Brazilian government is preparing a set of measures, including tax breaks, to boost the development and construction of datacenters in the country. The announcement was made

by André Borges, the head of telecommunications at the ministry of science, technology, innovation and communications, and a ministerial source confirmed these plans to BNamericas.

Speaking during a telecommunications seminar in federal capital Brasília, Borges said the measures will be presented regardless of and in parallel to the enactment of the new telecom framework, but he did not specify when.

The telecom bill was passed by the senate committees last year and was due to be signed into law by President Temer, but opposition parties managed to delay the signing claiming that the voting process was irregular. –CB Report

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to Rive-year highs on Jan. 31 on worries over supply following the Rloods in Thailand, which accounts for nearly 40 percent of the world’s natural rubber, used mainly in car tires.

Thai rubber exporters have said they had enough of the commodity in stockpiles to ensure only minimal disruption to scheduled shipments. Thailand’s military government started buying rubber from farmers and building stockpiles as

prices started declining in 2014.

Meanwhile, Thailand’s central bank will likely leave its policy rate unchanged near record lows this week, as policymakers turn their focus to Riscal spending to support weak economic growth. Bank of Thailand (BoT) governor Veerathai Santiprabhob told Reuters last month that monetary policy would remain “accommodative” as the economic recovery was fragile and inRlation was not a big concern.

china invested $14.5 billion in Belt and road countries last year

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hina invested about $14.5 billion in countries along Belt and the Road Initiative routes last year about 8.5 percent of the country’s total overseas investment, an ofRicial said. Song Lihong, an inspector at the Comprehensive Department of the Ministry of Commerce, said great achievements have been made in the three years since the initiative was launched. Representatives from 93 think tanks and research institutes in China partici-

pated in a meeting on Belt and Road development hosted by Renmin University’s Chongyang Institute for Financial Studies.

Song said China has already signed agreements to cooperate with 14 countries stretching from Asia to Europe. It has also built 56 trade parks in more than 20 countries. Last year, China’s trade volume with countries along the Belt and Road reached 6.3 trillion yuan ($917 billion). –CB Report

urkey attracted $12.1 billion in foreign direct investment (FDI) in 2016, higher than expected in light of the latest developments in both Turkey and the surrounding region, a top association announced on Feb. 24. “Turkey saw a $12.1 billion FDI inRlow in 2016. This was a higher-than-expected Rigure considering the latest developments both in Turkey and the surrounding region,” said the head of the International Investors Association (YASED), Ahmet Erdem, in a speech at the association’s 36th Ordinary General Assembly. He said the FDI inRlow accelerated at the end of the year, which was another positive development.

“We need to work together to make this trend permanent and raise efRiciency. We, as YASED members, are aware of Turkey’s potential, and we

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uS tax reforms unlikely in 2018 ommenting on the state of play in Washington, Pimco head of public policy Libby Cantrill said that while the Republican Party will have little difRiculty getting any proposed legislation through the House of Representatives, the same could not be said for the Senate.

“With 52 seats, Republicans lack the all-important 60-vote Rilibusterproof majority,” she said. “This means that to pass legislation, Republicans must either secure at least eight Democratic votes, which seems unlikely in an increasingly partisan Washington, or use an arcane process known as budget rec-

Saudi cpI continues to slide downward

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JEDDAH

cuStoMS BuLLetIN report www.customsbulletin.com

audi Arabia’s consumer price index (CPI) continued to edge downward in January, recording the Rirst negative year-on-year growth since 2005, at -0.4 percent, Jadwa Investment said in a report issued on Sunday. Prices of foodstuffs

continued to fall, declining by 3.6 percent year-on-year in January, it said. Meanwhile, housing continued to be the main contributor to overall inRlation. “Our core index estimate also continued to decelerate year-on-year, reaching 0.6 percent in January. Looking ahead, government initiatives aimed at stimulating private sector activity should have a positive impact on aggregate

believe that the share of Turkey in global FDI could increase to 3 percent,” added Erdem. Turkey was the 20th most popular destination for FDI inRlow in 2015, rising two spots from its 22nd ranking the previous year, an international report showed on June 21, 2016. Turkey saw an FDI inRlow worth $16.5 billion in 2015, a 36 percent increase from the previous year, rising by four points to eighth among emerging markets, according to the latest World Investment Report 2016 by the United Nations Conference on Trade and Development (UNCTAD). Turkey took a 1 percent share of the entire FDI Rlow in 2015.

Erdem said the FDI inRlow into Turkey was around $1 billion to 2 billion in 2002, and increased to today’s levels thanks to the realization of a number of key required reforms and the EU membership process. “Turkey lured $175 billion FDI since 2005 in total, equaling an average of $14.5 billion on annual basis,” he said, adding that the global FDI inRlow was expected to decrease 13 percent in 2016.

demand, and therefore inRlation,” said Jadwa researchers. They said that the planned increase in household electricity prices by mid-2017 should accelerate inRlation to similar levels witnessed in early 2016, when energy prices were increased.

According to the report, the sharp slowdown in headline inRlation was mainly due to the diminishing effects of the reform in energy prices seen

onciliation, which allows the Senate to pass legislation with only 50 votes.” Ms Cantrill said the budget reconciliation process comes “with strings attached” and due to the way the process works, the Republicans will have to overhaul the healthcare system before they can commence on tax reforms. “This is a key point, given that a healthcare overhaul could take all year – it took President Obama 14 months, even with the beneRit of higher approval ratings, healthier majorities in both chambers and a shared vision for healthcare overhaul within his party,” she said. –CB Report

back in January 2016. However, even in month-on-month terms, CPI recorded a negative change of -0.2 percent. Prices of foodstuffs, the largest weight in the CPI basket, remained in the negative territory for the 6th consecutive month, both yearon-year and month-on-month terms.

Conversely, the report added, housing and utilities recorded a positive year-on-year change of 1.2 percent.

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Total seeking to buy Iranian LNG project

World Customs

TEHRAN: According to the latest report by Reuters, Total is in talks to buy a multibillion dollar stake in Iran’s part-completed LNG export facility, Iran LNG. Total is seeking entry into Iran LNG at a discount to the pre-sanctions price in exchange for reviving the stalled project. Iran shares the world’s biggest gas field with Qatar, which has used the reserves to build over a dozen giant liquefaction plants – a move Iran is keen to replicate. The Iranian part of the field, known as South Pars, contains over 14 trillion m3 of gas.

Iran aims to grow gas output to 1 trillion m3 by 2018, up from 160.5 billion m3 in 2012, before the latest sanctions took effect.

Bumi resources swings to profit in 2016 ndonesia’s largest coal producer by volume Bumi Resources booked $100.6 million in net income last year, a huge swing up from $2 billion in net losses in 2015, having taken advantage of lower production costs and a higher coal price as well as improved its energy efficiency last year. “We were able to minimize production costs last year by not drilling too deep [to extract coal] since we had so many reserves already,” Bumi Resources president director Ari Saptari Hudaya told reporters at a press conference on Thursday (23/02). The miner currently has 2.2 billion metric tons of coal reserves and 12.4 billion metric tons of coal resources. Bumi’s sales volume went up 11 percent to 87.7 million tonnes last year from 79.3 million tonnes in 2015. The thermal coal exporter produced 86 million tonnes of coal last year, up 6.17 percent from 81 million tonnes in 2015.

The company expects to sell 96.3 million tonnes of coal in 2017.

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South African fig exports shows rise he South African fig export industry is expanding with domestic demand also showing improvement. Average yields in the Western Cape as well as in the Northwest Province are 3-4 ton per hectare.

The South African export firm moving the largest volumes of figs is Star South, which exported 450t of figs last year (60% to the UK and the balance to the EU, Canada, Middle and Far East). According to Danel van Deventer, logistics manager for figs at Star South, last year they marketed a further 100t as fresh fruit locally and 10t for processing, such as fig preserve (very popular in South Africa) and drying. A lot of the fruit is sold at roadside farm stalls and farmer’s markets in the Western Cape and therefore the volume consumed locally is unknown. –CB Report

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uS customs recovers 100 pounds of marijuana

WASHINGTON

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ustoms ofRicers in Arizona, USA said they found more than 100 pounds of marijuana concealed inside hollowedout pieces of Rirewood.

U.S. Customs and Border Protection said ofRicers at the Port of Sasabe stopped a Ford truck driven by a 41-year-old man and a narcotics detecting canine indicated something unusual about the shipment of mesquite Rirewood in the back of the vehicle. OfRicers took the Rirewood off the truck and split pieces in half, revealing hidden packages of marijuana. The ofRicers found more than

100 pounds of marijuana, worth an estimated $53,000.

Meanwhile, The trade statistics released by the US Department of commerce and Bureau of Census indicates that ferrous scrap exports by the country rebounded by nearly 4% in 2016. This is when matched with the exports during the previous year.

The US ferrous scrap exports have reported increase for the Rirst time after registering four consecutive years of year-on-year decline. According to data, the country’s ferrous scrap exports totaled 13.230 million tonnes (Mt) during 2016.

The exports inched higher by 3.6% over the previous year. The scrap exports had totaled 12.768 Mt during the entire year 2015.

The primary importer of US ferrous scrap during the year was

Turkey. The Turkish imports totaled 3.168 Mt, accounting for nearly 24% of the total US ferrous scrap exports during the year.

Turkey reported 20% drop in US ferrous scrap purchases during the year. The country had imported 3.961 Mt in 2015. The second largest importer was Mexico with 2.049 Mt. The country accounted for 15.5% share of US ferrous scrap exports. The Mexican imports of US ferrous scrap skyrocketed by 78%, when compared with imports of 1.152 Mt recorded during 2015. In third place was Taiwan with total imports of 1.366 Mt. Over 10% of US ferrous scrap exports during 2016 were to Taiwan.

The imports by Taiwan have declined marginally by 2.9% over the previous year.

Friday March 3, 2017

eurozone’s trade surplus widened in 2016 he eurozone’s surplus in its trade in goods with the rest of the world rose in 2016, as its exports were unchanged and its imports declined. The European Union’s statistics agency said Wednesday that eurozone exports exceeded imports by 273.9 billion euros($290.3 billion) last year, a widening of that gap from EUR238.7 billion in 2015.

Exports were broadly unchanged over 2016, but picked up in the final months of the year. Eurostat said the currency area’s trade surplus in December widened to EUR28.1 billion from EUR24.4 billion in the same month of 2015. Adjusted for seasonal effects, exports rose by 2.8% from November, while imports increased by 1.7%, leaving a surplus of EUR24.5 billion, a widening from EUR22.2 billion in November. The pickup in exports provided a support to the currency area’s still modest recovery and likely reflected a weakening of the euro against the dollar over recent months. The outlook for eurozone trade in 2017 is clouded by uncertainty about U.S. trade policy under President Donald Trump. Peter Navarro, the head of Mr. Trump’s new National Trade Council, has said German exporters have an unfair advantage because of the euro’s weak exchange rate. There are also worries that eurozone exports to the U.K. may suffer as a result of the weaker pound and an anticipated slowing of demand in one of the currency area’s largest overseas markets. –CB Report

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Saudi to fix date for implementing selective tax

T RIYADH

cuStoMS BuLLetIN report www.customsbulletin.com

he Council of Ministers on authorized minister of Rinance to Rix the date for imposing selective tax in the Kingdom. Custodian of the Two Holy Mosques King Salman chaired the weekly session of the Cabinet at Al-Yamama Palace in Riyadh. Last month, the Cabinet approved the uniform agreement on Value Added Tax (VAT) and selective taxes.

Saudi Arabia’s 2017 state budget recommended a Rive percent VAT from 2018, without any change in the prices. Other Gulf countries are also expected to implement VAT by the beginning of next year. In a statement to the Saudi Press Agency following the session, Minister of Culture and Information Adel Al-TuraiRi said the Cabinet approved the decision of the GCC Supreme Council held in Bahrain in Dec. 2016 with regard to the imposition of uniform selective tax. It also endorsed the GCC summit decision to instruct GCC embassies and con-

sulates and the agencies concerned to ensure medical Ritness of expatriate workers through an electronic linking system for their medical tests on a mandatory basis. It will not be allowed to carry out medical tests at health centers not approved by the Council of GCC Health Ministers. AlTuraiRi said the Cabinet lauded the continued efforts of security forces in foiling vicious plots of deviant groups, especially the recent successful preemptive operations that resulted in the dismantling of four Daesh cells in Makkah, Madinah, Riyadh and Al-Qas-

sim regions. The Cabinet also strongly condemned the recent terrorist attacks in Sitra village in Bahrain, in Mogadishu, as well as in Lahore. It reiterated its solidarity with Bahrain, Somalia and Pakistan in Righting terror in all its forms and manifestations.

The Cabinet authorized the Crown Prince or his deputy to discuss and sign a memorandum of understanding (MoU) between the Saudi Ministry of Interior and the Japanese National Public Safety Commission with regard to security cooperation and combating crime.

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FIA detains accused in fraud Friday March 3, 2017

Lahore

LAHORE: The FIA team has arrested a man for getting money from two persons on the pretext of sending them abroad.

According to the FIA spokesman, Muhammad Ghulam Mustafa, a resident of Sargodha district, received Rs 342,000 and Rs 250,000, respectively from complainants Muhammad Adil and Razzaq of Sargodha for sending them to Dubai for employment.

However, later on, neither the accused sent them abroad nor returned their money.

A case has been registered.

NAB arrests accused of cheating public at large

wht zone of rto-II achieves 101pc growth in six months: Sajid Ahmed

LAHORE

LAHORE

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SAJID NAwAZ

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ue to outstanding performance by the Withholding Zone, Regional Tax OfRice-II has collected Rs47371million with 101 percent growth in the Rirst half of the ongoing Rinancial year. The WHT Zone record 320 percent growth has been recorded in spinning section and 130 percent under the head of marriage halls under the Section 236-D in the Rirst six months of Financial Year 2016-17. Outstanding performance is due to team efforts of the ofRicers and ofRicials as well. This was stated by RTO-II Deputy Commissioner Muhammad Sajid Ahmed, Withholding Zone, during an exclusive interview with Customs Today.

He said the RTO-II constituted

pcA detects tax evasion by M/s trust enterprises irectorate of Customs Post Clarence Audit (PCA) has summoned M/s Trust Enterprise Rawalpindi in duty and tax evasion of Rs 2,503,829 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 Collectorates 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 specifically excluded from that ambit of said SRO and hence was not entitled for such benefit under the said SRO. It has been observed that importer had imported various consignments consisting of Tarpaul and got it cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/201 1, dated 31.12.2011. –M Hayat

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teams under the supervision of Additional Commissioners Atif Bashir and Muhammad Ali to educate the withholding agents about the newly introduced properties ordinance. As a result, the WHT zone showed outstanding performance during the Rirst half of the Rinancial year. Deputy Commissioner Sajid Ahmed said that Rs1109million were collected from vehicles with one percent growth from previous year, Rs698 million done in commission as 26 percent growth, Rs1443million with six percent growth in token tax, Rs566million from CNG sector with 19 percent growth, Rs157million with 37 percent growth from auctions. He said the withholding zone of the RTO-II has collected Rs692million with 67 percent growth from petroleum products, Rs4m generated from marriage halls with 130pc growth, Rs698m with 26 pc growth from commission.

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ational Accountability Bureau arrested Director of M/s AWJ Securities private limited Hassan Waheed son of Abdul Waheed accused in Rs260 million fraud and cheating public at large for the purpose of sale and purchase of shares in stock exchange. According to details, a complaint received from Securities and Exchange Commission of Pakistan (SECP) according to which the director of M/s AWJ Securities private limited was involved in a major public fraud amount including Rs260 million.

120 complainants have Rilled complaints against the accused.

Reportedly, the accused with fraudulent intentions collected huge amount from public at large for the purpose of sale and purchase of

Lhc suspends anti-dumping duty on imports collected by Ntc

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he Lahore High Court (LHC) has suspended the anti-dumping duty on imports. Justice Aisha-A-Malik issued the order on the appeal of M/s Sara enterprises and 14 others.

Counsel for appellant Shafqat Chohan argued before the court that the chairman and other Members of the National Tariff Commission (NTC) were appointed against the merit and on political basis. After the decision of the court, all three members of the NTC were removed but the duties im-

posed by chairman are being collected to date on the imports of tiles, paper, Iron and other things. According to the law, the members of the National Tariff Commission must be Rive in numbers but without appointment of members, the NTC is collecting import duty as anti-dumping tax from the importers. The counsel appealed the court that in the light of illegal formation of the National Tariff Commission, the LHC should declare null and void the tax notices issued by the NTC to the importers. –Sajid Nawaz

shares in stock exchange with mala Ride intentions. NAB presented the accused before the accountability court. The court granted physical remand of the accused for 10 days.

Earlier, Chairman NAB Qamar Zaman Chaudhry has taken cognizance of two cases on a complaint lodged

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by Chairman SECP regarding MR Securities (SMC-Private) Limited (MRSPL) and AWJ Securities Private Limited. The two brokerage Houses registered with SECP have been complained against non-transfer/non delivery of securities and non-payments of cash to the investors.

FIA nabs accused travelling on fake visa he Federal Investigation Agency (FIA) arrested an accused who was travelling from Lahore to Italy on fake documents.

FIA sources said accused Andleeb Hassan was travelling to Italy from the Allama Iqbal International Airport when he was caught for having fake and bogus documents.

On Departure at the Allama Iqbal International Airport by PIA, FIA arrested him on the charges of trafRicking and fraud. Earlier, FIA has also ofRloaded a number of passengers from a Rlight travelling on fake visas. During a preliminary investigation, the detainees revealed that they had ac-

quired work permits after paying a huge sum of money to a travelling agent based in Lahore. Meanwhile, The Federal Investigation Agency (FIA) ofRloaded 10 passengers from a plane attempting to leave the country using fake work permits at Lahore airport. The FIA sources said that 10 people ofRloaded from the Pakistan International Airline (PIA) Flight PK-898 at the Allama Iqbal International Airport were being interrogated. In the preliminary investigation, the detainees revealed that they had acquired the work permits after paying a huge sum of money to a travelling agent based in Lahore. –M Imran Mehar

customs Appellate tribunal hears 38 important cases

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LAHORE

SAJID NAwAZ

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he Customs Appellate Tribunal heard 38 important cases on Thursday. The members of all benches from Lahore, Karachi, Islamabad and Peshawar heard the cases in Lahore and adjourned all the cases until the next hearing. Chairman Cus-

toms Appellate Tribunal formed special benches to decide the cases. The Customs Appellate Tribunal special division bench comprising Member Judicial Bench-II Karachi Tahir Zia Mehr and Member Technical Bench-II Karachi Nazim Saleem adjourned 9 cases. The adjourned cases includes Muhammad Nawaz versus Customs Lahore, Ali Mubashir versus Customs Lahore, two cases of Marwat Khan and

Wateen Vimex versus Customs Faisalabad, Bank of Khyber versus Customs Lahore, Collector Customs Faisalabad versus Nasrullah Khan, Amjed Javed versus director Faisalabad, Mustafa Bilal versus director Faisalabad and Collector Customs Lahore versus Vijay Kumar. Special division comprising Member Judicial Bench-II Omer Arshed Hakeem and Member Technical Bench-II Lahore Imran Tariq

heard 12 cases. These cases includes Jahangir Ali versus Customs Lahore, Ferdous Textile versus Customs Faisalabad, Shakir Hussain versus Customs Intelligence Faisalabad, Jumma Khan versus Customs Multan, customs Faisalabad versus Atta Ullah, Intelligence Faisalabad versus Shakoor, customs Lahore against A.I Corporation and Salah Ud din versus directorate Multan Unit D G Khan.

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Irish ports show Brexit currency fallout WASHINGTON: The effect of Brexit on some types of exports and imports may be showing up in reduced traffic through Irish ports. Figures from the Irish Maritime Development Office which monitors traffic through ports show that a sharp drop in so-called dry bulk traffic dropped 10% in the fourth quarter of last year from a year earlier, as coal and trade in animal feeds fell sharply. The period coincided with the sharp fall in the value of sterling against the euro amid heightened uncertainty over the UK’s plans following its June decision to quit the EU. The sharp weakness of sterling can affect the huge amounts of both exports and imports passing through ports and can be particularly disruptive to large shipments such as agri-food and fuels.

cosco Shipping ports container volumes up 7pc in Jan osco Shipping Ports started the year on a good note with overall throughput rising 7% in January to 8.38m teu from 7.83m teu in the previous corresponding period.

Gains were once again led by the overseas segment with volumes rising 38% to 1.41m teu from 1.02m teu previously. Meanwhile the key Bohai RIm and Yangtze River Delta regions also performed well with volume gains of 3% and 2% respectively. Throughput rose to 2.76m teu from 2.68m teu at the Bohai Rim region in January, while at the Yangtze River Delta, volumes rose to 1.62m teu from 1.58m teu in January 2016.

Even the Pearl River Delta region, which includes the group’s Hong Kong terminals, which had been struggling all though last year managed to turn in positive growth in throughput, with volumes rising 3% to 2.16m teu from 2.10m teu.

COSCO-HIT terminal in particular turned

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in a stellar 21% rise in throughput for January. The slowly growing ports on the Southeast coast grew 4% to 349,100 teu from 336,700 teu previously. And the single port on the Southwest coast started the year slowly, being the only port to see negative growth, with throughput falling 9% to 93,100 teu from 102,700 teu previously. Meanwhile, The Maritime Safety Authority of Fiji (MSAF) is only responsible in ensuring that all harmful substances from derelict ships are removed.

MSAF chief executive officer, John Tunidau highlighted this during his presentation to the Standing Committee on Public Accounts today. However, Mr Tunidau said Fiji Ports is responsible for removing all derelict vessels from the Harbour. Mr Tunidau said officers from the authority are also assigned to check the vessel in order to ensure the safety and prevention of pollution. –CB Report

Ports & hipping

Friday March 3, 2017

Shipping activity panama ports container at port Qasim volumes plunge 9.1% in 2016 F WASHINGTON

cuStoMS BuLLetIN report www.customsbulletin.com

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ontainerised cargo moved

by Panamanian ports fell 9.1% in 2016, the Rirst time such a decrease has been recorded since the 2008 – 2009 economic crisis. Panama ports reported total container volumes of 6.26m teu for last year 6.89m teu a year earlier with all terminals registering a decline. The fall in volumes reRlects a downturn in transhipment which has been a general trend in the region. Two terminals posted double digit decreases; Evergreen’s Colon Container Terminal [CCT] on the Atlantic side fell by 19.9% to 632,845 teu while on the PaciRic side, PSA International-Panama was 26.9% below last year with 157,967 teu.

The terminal is undergoing expansion that will double its capacity.

Also on the PaciRic side, Balboa saw a fall of 8% to 2.83m teu, while Cristobal on the Atlantic decreased by 2.3% to 793,941 teu having gained new

services. Both terminals are administrated by Hutchison. Manzanillo International Terminal [MIT], on the Atlantic, fell 7.3% to 1.83m teu.

However, some terminals posted slight growth in the last quarter of 2016 in particular MIT, Cristobal and Balboa.”2017 will be a period of transition in the maritime business on a global level, and above all with many changes in Latin America. New alliances and acquisitions in the sector of shipping lines; new terminals en-

tering into operation and others in the process of completing their construction; and a lot of competition for the transhipment cargo will make the year of the rooster very ‘challenging’,” said Carlos Urriola, president of SSA International parent company of Seattle-based Carrix. SSA International operates ports in Mexico, Chile, Colombia and Vietnam, Haiti and Puerto Rico with its Rlagship terminal in Panama, Manzanillo International Terminal-Panama [MIT].

ive ships Maersk Pittsburgh, Mataquito, MSC Tokomo, MariaIII and Khor Gas carrying containers and LPG were arranged berthing at Qasim International Container Terminal, SSGC LPG Terminal and Engro Vopak Terminal respectively on Tuesday. Sixty percent berth occupancy was observed at the port on Tuesday where a total of nine ships namely Maersk Pittsburgh, Mataquito, MSC Tokomo Jazan, MSC Messine Astraea SB, Maria-III, Khor Gas, SC Behai and Arietis are currently occupying berths to load/offload containers, chemicals, project cargo canola seeds, palm oil and furnace oil respectively during last 24 hours.

Cargo handling remained during last 24 hours at 154,531 tonnes comprising 139,274 tonnes import cargo and 15,257 tonnes export cargo inclusive of containerized cargo carried in 4,983 containers (TEUs) 4,180 imports TUEs & 903 TUEs exports. Bulk cargo carrier Astraea SB sailed out to sea on Wednesday morning, while two more ships Maersk Pittsburgh and Khor Gas are expected to sail on same day. –CB Report

Mexican port growth outpaces uS, canada C

WASHINGTON

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argo volumes through Mexican ports increased by 5.5 percent in 2016, outpacing its two North American Free Trade Agreement counterparts, despite the weakening peso, gas price hikes ,and transportation-link blockades. Yet the year ahead may be even more difRicult for Mexico, given the uncertainty over its trade with the United States, and will likely be far tougher than for its counterparts.

Mexican ports handled 4.1 million loaded twenty-foot-equivalent containers in 2016, up from 3.9 million TEUs in 2015, according to Rigures released by the Mexican Secretariat of Communications and Transport, which oversees the port system. That was slightly better than the 5.1 percent year-over-year increase in 2015. It was also

stronger than the 2016 performance of US ports, where the volume of loaded TEUs increased by 3.3 percent over 2016. Mexico also seems to have done better than Canada. Although national Rigures for Canadian ports are not available, laden volumes through four of the country’s largest ports — Vancouver, Montreal, Prince Rupert, and Port Saint John — grew by just over 0.5 percent. The volume of loaded containers imported into Mexico, which accounts for about 60 percent of Mexico’s loaded container volume, increased by 5 percent year-overyear in 2016 as loaded exports increased by 6 percent. The Rigures were driven in part by strong volume growth at the largest Gulf Coast port, Altamira, and at Lazaro Cardenas on the PaciRic Coast, while volume slowed at the nation’s busiest container port, Manzanillo.

Under normal circumstances,

solid 2016 Rigures would mean Mexico’s logistics industry is entering 2017 with a promising hand, especially given the federal government’s vigorous commitment to spend $5 billion on upgrading the port system. Port improvements set to come online in the next 12 months include a new terminal built by APM Terminals that is set to open on Feb. 27 at the Port of Lazaro Cardenas; a new rail tunnel at Manzanillo to open by the end of the year; and a continuing construction project at the nation’s largest port on the Gulf of Mexico, Veracruz, that is planned to increase its 900,000-TEU capacity Rive-fold by 2030. Mexican ofRicials recently called Veracruz the nation’s biggest infrastructure investment in 100 years. Yet the industry instead begins the year facing the turmoil of the Trump administration’s threat to renegotiate NAFTA and put up tariffs on Mexican goods coming

into the United States, and the administration’s pressure aimed at dissuading US companies from investing in Mexican projects. All of which could reduce trade and container volumes.

Of particular worry is President Donald Trump’s focus on the automobile industry, which has become the backbone of the Mexican manufacturing sector and now includes more than a dozen plants — among them for Ford, Chrysler, Fiat, and General Motors. Already, Ford — under pressure from Trump — has retreated from a plan to build a new factory in Mexico that would support 700 jobs, although it still plans to shift production of its Focus model from Michigan to Mexico.

“Most of the automotive production in our country is destined for export,” said Guillermo Deister Mateos, head of SCT’s maritime and port strategic planning unit.

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Customs generates Rs8.21m more CD than allocated target ISLAMABAD: The Model Customs Collectorate (MCC) Islamabad earned Rs8.21million more Customs Duty than the assigned target of initial 15 days of February FY2016-17.

According to Collector MCC Islamabad Dr. Arslan Subetgeen, the collectorate received Rs226.00million Customs Duty whereas the collectorate was assigned Rs218.00million Customs Duty during the 1st of February to 15th of February. The collectorate collected Rs194.01million during the same period of previous Financial Year FY2015-16.

Friday, March 3, 2017

CUSTOMS BULLETIN

FBr should adopt strict laws against tax evaders: Fto Abdul rauf chaudhary ISLAMABAD M FAIZAN

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ederal Tax Ombudsman (FTO) Abdul Rauf Chaudhary has said that the country’s tax system needs reforms and the Federal Board of Revenue (FBR) must adopt strict accountability system against those who are avoiding to Rile tax returns.

He expressed these views while speaking to the FTO advisory committee members. He said there are Rlaws and Rlexibility in the tax laws and the FBR should review the same carefully. The meeting of the advisory committee held under the chairmanship of Abdul Rauf Chaudhary at Islamabad FTO ofRice which was attended by the all 13 members. He said that the Federal Tax Ombudsman Secretariat is providing cheap and speedy justice to the taxpayers aggrieved due to mal-administration.

Our top priority is to remove tax related irritants, reduce cost of doing business and promote conducive tax culture in our country to ensure good governance. He said Federal Tax Ombudsman and taxpayer interface has been established through periodic meetings with chambers of commerce and industry, trade bodies,

business associations, tax bars and the civil society Organizations in the

country. The advisory committee has decided to put forward some sug-

gestions and proposals regarding the tax reforms, to the Federal Board of

Revenue and Ministry of Finance for the Finance Act 2017.

Business halt on torkham border causes big losses to exchequer PEHSAWAR

NADIr khAN

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he suspension of all sorts of movement on PakAfghan Torkham border has caused millions of monetary losses to national exchequer as trade related activities have completely ceased to run for the seventh consecutive day on Friday.

Local tribesmen, associated with various businesses on

Torkham border, were of the view that they have been conRined to their homes for the last one week and the closure of Pak-Afghan border has multiplied their miseries.

Torkham Customs House ofRicial Naeem, sharing details pertaining to vehicles, said that approximately 500 loaded vehicles from export goods and 400 import goods carrier trucks were daily crossing the border and Rs15million rupees taxes were being collected from them.

“The export of agriculture products to Afghanistan have stopped that will not only cause losses to the exporters but also have a negative im-

pact on the agriculture sector of the country”, he maintained. Regarding the loaded vehicles, customs ofRicial informed Customs Today that around 600 containers of Afghan Transit Trade were stranded on bordering area and that it was an only source of income for foreign exchange. The uncertain situation on Pak-Afghan border certainly affects the economy of Pakistan, he stated.

Suspending supply of certain commodities like sugar and wheat that have been permitted through agreement by the Ministry of Commerce via Torkham will discourage export and if situation remains as it is then

the importers in Afghanistan will do business with their neighbouring countries like Iran and Tajikistan.

President Clearance Agents Association Torkham Hayatullah Shinwari, sharing his views, said that for the last one week all clearance process had been halted in Torkham and more than 600 clearing agents besides hundreds of thousands of labourers, handcart pushers and daily wagers had been rendered jobless. Torkham is the core of all economic activities for the local tribesmen and suspension of the border is tantamount to deprive the locals from earning three-time

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bread, he remarked. Khalil Shah, a money changer in Torkham, said closing of the border had completely shut their business run by more than 20 moneychangers as no trucker or pedestrian was allowed to or from Pakistan to cross the border. As per Torkham taxi stand contactor, a total of 3200 taxi vehicles, including 2000 cars and 1200 Rlying coaches, were running between Torkham and Peshawar and maximum locals were attached to the transport but suspension of the border compelled them to park their vehicles in parking lots or their residencies.