Saturday, 10 March 2018 by customs bulletin

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Karachi, Sat March 10, 2018

PESHAWAR

IRFAN BAHADUR

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he Customs House Peshawar has auctioned off during February the Non-Duty-Paid vehicles and goods worth Rs264millions. The Customs House Peshawar has impounded 35 vehicles and NDP items during different raids. These cars were of different models which include Toyota, Mercedes, Vitz, Mehran, Cultus and XLI motor cars. The use of NDP cars has been strictly discouraged for which special teams have been constituted. During the last three months, the Anti-Smuggling Unit of Mardan impounded 11 cars loaded with goods which were being smuggled from Kharhano market into Peshawar. The ASU Nowshera impounded seven

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cars along with Mazda loaded with NDP cloths which was of foreign origin. The ASO Nowshera also thwarted an attempt of smuggling 32kg hashish and 11kg opium from a car on GT road. The accused has been arrested and a case Qiled against the accused smuggler according to Customs Acts-1969. The ASU Kohat frustrated an attempt of smuggling diesel Qilled in a Suzuki pickup on Monday. The ASU Kohat also aborted attempt of smuggling foreign origin cloths loaded in an empty container. The sources at the Customs Department conQirmed that various raids had been carried out by the customs staff on the godowns where several goods including China salt, foreign cloths and electronics seized. The collector customs has lauded the efforts made by the customs staff which add extra revenue to the collection of customs exchequer.

Customs Peshawar fetches Rs264m thru auction of vehicles & items

Customs Export recovers Rs12.25m from defaulter companies

Adjudication-II retrieves outstanding dues from two defaulter companies

FBR& USAIDhosts moot on establishment of National Single Window for trade

Peshawar Dry Port exhibits reasonable potential by earning Rs455m

Customs Peshawar has auctioned oďŹ&#x20AC; during Feb the NDP vehicles | See pAge 01 |

Customs Export has recovered evaded taxes and duties of Rs 10.25 million | See pAge 02 |

Adjudication-II served a final notice on a defaulter Co Mirza Wooden Works | See pAge 02 |

USAIDandtheFBRjointlyhostedatwo-day conference on the establishment | See pAge 05 |

Peshawar Dry Port collected Rs455m of revenue under all the heads in the month | See pAge 08 |

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FIA seizes drug stock Saturday, March 10, 2018

National

LAHORE: A team of Federal Investigation Agency (FIA) conducted a series of raids and sealed the oﬃce of pharmaceutical company and seize its all stock. Led by FIA Assistant Director Ch Ejaz Ahmed, an FIA team not only sealed the oﬃce of the pharmaceutical company on Wahdat Road, Lahore, but also seized its stock from its distributors. The FIA assistant director said the FIA team also taken into possession all record of the company from its distributors in the provincial metropolis.

customs export recovers Rs12.25m from defaulter companies

KARACHI

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wAQAR AHmeD ANSARI

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he Customs Adjudication-II served a final notice on a defaulter company named M/s Mirza Wooden Works and recovered Rs4.14million from M/s Shabbir Tiles (Nazimabad) Karachi. M/s Mirza Wooden Works was allegedly involved in tax evasion. The company imported diﬀerent kinds of foreign wood (used in unique furnitures) on November 11, 2017 which was examined through one Waheed Khan who used the wrong PCT heading. After a careful investigation, the Customs Adjudication-II issued a final notice to the company on February 20. The company cleared the amount of Rs3.50million on Tuesday. Source said another company M/s Shabbir Tiles got cleared a consignment of floor tiles on December 18, 2017 and evaded a tax amount of Rs4.14million. After the investigation, the Customs Adjudication-II served a show cause notice on the company on January 12, 2018 but it failed to clear the tax amount. The Collector Customs Adjudication-II served a final notice on the company on January 26, 2018. After receiving the notice, the company deposited Rs4.14million in favor of the Customs Department.

he Customs Export has recovered evaded taxes and duties of Rs 10.25 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Mougheera & Company availed undue benefits and concessions after importing different consignments by misusing the SRO 568 through Examiner Usman Ali on August 2017. Sources further said that the company was allegedly involved in the tax evasion of Rs 4.56 million. After detecting the tax evasion in the month of February 2018,, the Customs Export served on it a final notice on February 22 , 2018 to deposit the evaded amount within fourteen days, but Defaulter Company couldn’t submit amount. In March After receiving the notice, the management of M/s Mougheera & Company deposited the evaded amount in the official account of the Customs Export on 5th, March 2018. On the other hand, the management of the M/s Classic Paints Gharo also cleared Rs5.69 million of taxes and duties. Sources told the correspondent that M/s Classic Paints Gharo also availed undue benefits and con-

Adjudication-II retrieves outstanding dues from two defaulter companies

cessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities is-

sued to it a final notice on February 19, 2018. After receiving the notice, the management of the M/s

Classic Paints Gharo deposited the evaded amount of taxes into the official account.

Senate body expresses disappointment over sugarcane price

ISLAMABAD

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enate Standing Committee on National Food Security and Research expressed its serious concerns and disappointment over the non-implementation of minimum support prices of sugarcane crop, which was notiQied by the respective provincial governments for the sugarcane growers during current season. The committee met here

with Senator Syed Muzaffar Hussain Shah in the chair also noted that the minimum support price for the sugarcane crop lay down by the Sindh High Court at Rs 160 per 40 kg was also not implemented by the provincial government of Sindh. The meeting observed that although it was a provincial subject after the 18th constitutional amendment but the federal government should play its role to protect the farmers rights and agriculture development in the country. The committee anticipated that

in view of prevailing situation the cultivation of sugarcane would be badly effected and growers would shift their crop to other crop, which would created seriously sugar crisis in the country to fulQill its domestic requirements. The committee recommended the federal and provincial governments for evolving a proper mechanism in order to provide fair prices to the farmers for their produces and protect their rights and saving them form the exploitation. The meeting also asked

the provincial governments to ensure minimum support price of sugarcane crop through their sugarcane commissioners. The committee asked for formulating a proper crop policy and planning in order to avoid such situation as well as making the agriculture sector more proQitable and producing resources efQicient crops to fulQill the domestic requirements as well as for exporting. Meanwhile, Minister for National Food Security and Research Sikandar Hayat Khan Bosan informed the commit-

tee that the matter was also taken up in the meeting of the Council of Common Interest, where the provincial governments were directed to ensure implementationof minimum support price of sugarcane crops during the crushing season. The minister apprised the meeting that the Federal Cabinet has approved to give administrative control of Pakistan Central Committee to Ministry of National Food Security and Research, which could help to enhance the cotton crop output in the country.

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he United States Agency for International Development (USAID) and the Federal Board of Revenue jointly hosted a two-day conference on the establishment of a National Single Window for trade. The window allowed parties involved in trade and transport to Qile standardized information and documents at a single entry point for all imports, exports, and transit-related regulatory requirements. The conference brought more than 100 government ofQicials from key trade regulators to better understand the challenges involved in institutionalizing Pakistan’s National Single Window for trade. While speaking at the conference, the Minister of State for Finance, Rana Muhammad Afzal Khan said, “The National Single Window Initiative is one of the most critical reform efforts initiated in the trade-related public sector.” He added “this system has the capacity to transform and modernize traditional way of doing business by introducing various trade-related processes and procedures in an automated, paperless environment leading to signiQicant savings to Pakistan’s trade in terms of time and costs. This development will have a positive impact on the efQiciency and effectiveness of the public sector regulatory bodies.” Around the world, bu-

Saturday, March 10, 2018

reaucratic processes that burden traders deter business and discourage exports. A National Single Window will expedite the process of cross-border trade, enabling businesses to expand their operations and the government to reduce unnecessary bureaucracy. While delivering remarks at the conference, acting USAID Mission Director, Helen Pataki, said, “for Pakistan, boosting exports

, the erence f n o c e ana g at th nce, R n i a k n i a F e r Sp tate fo , “ the er of S n said t a s i h n k i l m Afza tiative mmad ow Ini d n i muha w rm le al refo al Sing t critic s Nation o m deof the he tra t n i d is one te s initia ctor.” eﬀort blic se u p d e relat

and enhancing the competitiveness of Pakistani industries is integral to overcoming the current trade imbalance. By making trade simpler, the National Single Window will unlock Pakistan’s economy.” Development of the National Single Window for trade in Pakistan will be phased in over a span of four years. The National Single Window is only one component of USAID’s enduring efforts to support Pakistan’s economic growth by enabling private sector investment, promoting a vibrant agricultural sector, fostering a strong business enabling environment, and expanding trade opportunities. USAID’s Pakistan Regional Economic Integration Activity is a Qive-year initiative that aims to improve the development of Pakistan’s trade sector. The public-private dialogue forum supports the United States’ objectives to improve Pakistan’s trade environment by building the institutional and human capacity of both public and private stakeholders. USAID’s training for Pakistan Activity is a multiyear initiative aimed at providing training in the areas of education, energy, economic growth and agriculture, health, and stabilization and governance in line with the development objectives of the Government of Pakistan.

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eDItoRIAL

Rising trade deficit

ccording to newspaper reports, trade deficit has crossed $18 billion in six months of the current fiscal year due to increase in imports, showing a bitter fact that depreciation of rupee has left no better impact on the national economy. The Pakistan Bureau of Statistics suggests imports remained more than 25 percent higher in rupee terms in January 2018 than the imports reported in January 2017. Despite the exports are increased by more than 17 percent in the same period, an increase in imports are also recorded, bringing the trade deficit by more than 31 percent. It is feared that the deficit will further rise in the closing months of the current fiscal year. The trade deficit was over 10 percent of the gross domestic product during the previous fiscal year. Another report compiled by the State Bank of Pakistan describes that the growth of the large-scale manufacturing rose by 5.55 percent during the first six months of the current fiscal year compared to 3.9 percent during the same period of the last year. The subsidiary industries are the backbone of the economy, but are blatantly ignored by every successive government and have been left on the mercy of several agencies. The textile, leather and food and beverages industries are also underperforming and desperately require tax concessions. However, the automobile, electronics, steel and petroleum industries showed good performance during the first six months of the current fiscal year. Though the government is concentrating on the development of infrastructure in the country, ease of doing business laws are a basic requirement to attract foreign investment. The investor-friendly policies could ensure sustainable growth in the export sector and ultimately it will restrict an increase in the trade deficit. Besides practical steps, a new culture of economy is also need of the hour. It is hoped the government will pay special attention to create investor-friendly and business friendly environment in the country to expedite growth in the industrial sector. Cottage or subsidiary industry is performing without any government support and it can work as an engine of growth for the country’s economy. The current economic situation confirms that the depreciation of rupee value was not a good decision.

current outlook of economy A

LAHORE

DR AFtAB AFZAL

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ccording to Moody’s Investors Service, the outlook Pakistan’s Qinancial sector will remain B3 (stable) for the next one and half years due to accelerated economic progress, stable funding, large holdings of lowrated government bonds by banks, modest capital levels and high asset risks. However, despite positive indicators from various sectors, the economy will remains susceptible to political instability while risk of deterioration in domestic security is also there. The rating agency has speciQically mentioned the Chinese-funded infrastructure projects as the driv-

ing force behind the economic growth which will be supported by domestic demand. The infrastructure projects could stimulate lending and help improve asset quality. Constantinos Kypreos, Moody’s Senior Vice President, opines the banks’ proQitability will remain Qlat and stable funding from customer deposits and high liquidity levels would show further strengths despite margin pressure. But the large holdings of low-rated government bonds would be the biggest challenge for the country’s banks. Another analyst believes the modest capital levels and high asset risks would be additional risks. Moody’s assessment of the stable outlook is based on Qive drivers, which in-

clude operating environment, asset risk and capital, proQitability and efQiciency, funding and liquidity and the government support. On the overall outlook of the economy, Moody’s puts the real GDP growth at 5.5 percent for 2018 and 5.6 percent for 2019. With regard to investment in infrastructure projects, the solid domestic demand will be the main driver of economic growth, which will fuel lending growth by 12 to 15 percent for 2018. The rating agency expects the asset quality will be improved during the current macroeconomic environment and will be supported by diversiQied loan portfolios and low corporate debt of the banks. However, the asset risk would remain high due to

frailty of legal framework, inefQicient foreclosure processes and lack of information to assess the situation. The low-rated government securities would continue to expose risks in the banking sector. As a matter of fact, the international rating agencies have their own aims and objectives to assess economies of various countries, including Pakistan. Where there is little need to take their assessments seriously, there is also need to carefully understand the risks factors mentioned by them in their reports. Pakistan is an emerging economy and all indicators are in its favour. Looking into the real situation on the ground, it appears the government is the biggest hurdle in the development of the economy.

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Japan industrial production pulls back in January Saturday March 10, 2018

World

TOKYO: Japanese industrial production fell at a faster rate than forecast in recording the sharpest fall since the 2011 earthquake. Industrial production fell 6.6 per cent month on month in January, tumbling at a faster pace than the 4.2 per cent decrease forecasts by economists in a poll. That was down from 2.9 per cent growth recorded in December. Transport equipment and general-purpose, production and business-oriented machinery contributed to the decrease, according to the ministry. The ministry said production is expected to pick up in February and decrease in March.

Border protection reports of liquid cocaine disguised

Brazil receives record 5.4b in from special oil royalty BRASILIA

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NEW YORK

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Customs agents in Cincinnati said that they intercepted a package of purported rose water that turned out to be 25 pounds of liquid cocaine. The shipment, which was intercepted in Cincinnati, was headed to Massachusetts, US Customs and Border Protection agents said. “The package was manifested as “Rose Waters,” and contained 12 bottles of both clear and rose-colored liquid. OfQicers tested the liquid, which was positive for cocaine,” agents said. OfQicials said the package came from Medellin, Columbia, and was destined for a residence in Revere, Massachusetts. “Our ofQicers are committed to keep our country and communities safe from illegal and dangerous drugs,” Cincinnati Port Director Richard Gillespie said. “This seizure is one example

thailand gets first fish exported from Fukushima since 3/11 shipment of Fukushima fish landed in Thailand this week, marking the prefecture’s first such exports since the March 2011 nuclear crisis. “We’re delighted to be able to sell fish worldwide from our prefecture,” said Kanji Tachiya, head of a fisheries cooperative association in Soma. “We’ll ship safe fish.” Fukushima is working to support its fisheries products to dispel lingering concerns about radioactive contamination from the triple core meltdown at the Fukushima No. 1 power plant run by Tokyo Electric Power Company Holdings Inc. On Wednesday, a 110-kg shipment of fresh flatfish was sent to Thailand from a port in Soma. The fish will be served at 12 Japanese restaurants in Bangkok on Friday. The Thai shipments will become regular as oﬃcials look to add more export channels. –CB Report

where their training and quick response was critical for ofQicer safety as well.” Meanwhile, Net proQit at Italian coffee maker Massimo Zanetti (MZB.MI) rose 8 percent last year helped by Qiscal reform in the United States, which lowered taxes the group pays overseas. The owner of Segafredo, Chock full o‘Nuts and Puccino coffee brands said on Wednes-

day full-year net proQit came in at 18.1 million euros as taxes more than halved at 4.85 million euros ($6 million). Nearly half of Zanetti’s sales are in the US In 2017 earnings before interest, taxes, depreciation and amortization (EBITDA) rose nearly 10 percent year-on-year to 75 million euros, net of non-recurring costs of 6.3 million euros.

South Africa’s cheapest medical aid schemes and hospital plans in 2018

he latest budget speech tabled for 2018 came with many of the expected tax hikes and budgetary changed – but one expected change did not make the cut, much to the relief of almost nine million South Africans on medical aids in the country. Many analysts expected the budget to do away with medical aid tax credits, which would have seen millions of South Africans losing out on an annual tax rebate, softened the blow of high monthly

premiums to subscribe to private healthcare plans. While these tax credits are safe for now, in the longer term, their sustainability is still in question – especially as the government looks set on its National Health Insurance plans, and actively seeks methods to Qinance them. Analysts have warned that the government’s current plans for the NHI – and the subsequent restructuring of medical aids and how they function in South Africa. –CB Report

razil received a record 5.4 billion reais ($1.66 billion) from a special royalty on oil and gas production in the fourth quarter, just below the 5.9 billion reais it received for all of 2016, Brazilian oil regulator ANP said. The payments, a windfall-profits tax known in Brazil as “the special participation,” is an additional royalty paid to the government on large and especially productive fields above and beyond the standard 10 percent per barrel. ANP said the Lula field generated 3.375 billion reais, the biggest share of the proceeds in the quarter. Meanwhile, The Brazil steelmaker sector is not interested in negotiating lower US tariffs for its products, only their elimination, Marco Polo de Mello

Lopes, president of the Aco Brazil steel institute, said. As a result of a US Section 232 investigation, the Commerce Department recommended a tariff of at least 53% on all steel imported from Brazil and other 11 countries, higher than the recommended global tariff of at least 24% on steel imports from other countries. “We are not working to reduce the tariff, we are not spending our energy in any kind of calculation [for a lower tariff] but to show that Brazil is not part of the problem, but of the solution,” Lopes said in an interview. To reach Aco Brazil’s objective, a delegation of CEOs from Brazilian steelmakers, including Usiminas’ Sergio Leite and led by Lopes, is to arrive in the US for meetings with US government representatives to discuss the tariffs and with US metallurgical coal producers, Lopes said. Brazil was the top importer of the US met coal in 2017, taking in 6.6 million mt, according to US Census data.

glyphosate ban hits S Lankan exports

armers have turned to unauthorised alternatives after the country banned glyphosate. Tea farmers in Sri Lanka were calling on the Government to reauthorise glyphosate as soaring costs, falling production and residues from alternative chemicals hit exports to key markets. The country banned glyphosate in 2015 after lobbyists blamed it for causing chronic kidney disease in workers. But industry chiefs disputed the link and said the ban has made working on tea plantations dangerous, increasing the amount of poisonous reptiles and insects on-farm.

Meanwhile, Nestlé Lanka said net proQits rose 37% to Rs1.18 billion in the December 2017 quarter from a year ago although annual proQit fell as a severe drought and Qloods dampened consumer demand amid higher costs. The Sri Lankan unit of Swiss food and beverage multinational said December 2017 quarter sales rose 16% to Rs9.98 billion. Quarterly earnings per share were Rs21.94. The stock was last traded at Rs1,850. In the year to 31 December 2017, EPS was Rs67.64 with net proQit down 17% to Rs3.6 billion while sales rose 3% to Rs37.6 billion from the previous year. –CB Report

India will likely increase coal imports in 2018

MUMBAI

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conomic Times reported that caught between logistical bottlenecks and surging demand from power plants, India will likely increase coal imports in 2018, industry executives said, in what would be a setback to the govern-

ment’s plans to cut the country’s dependence on foreign supplies. The projected higher coal demand, which would reverse two years of declines, will be a boon for international miners such as Indonesia’s Adaro Energy, Australia’s Whitehaven Coal or global commodity merchant Glencore. But, the country’s power plants and cement makers, the source of the resurgent de-

mand, will end up eating the cost of the higher-priced imports. State-owned Coal India, the world’s second biggest coal miner by production, is grappling with a shortage of trains to carry the fuel from its mines to the country’s power plants, according to the minutes of government meeting held thermal coal imports may rise as much as 4 percent this year, with a

steady 3 percent to 5 % of growth expected over the next Qive years, a senior executive at Adani Enterprises, the country’s biggest coal trader. Mr Rajendra Singh, Adani’s chief operating ofQicer for coal trading said that “They (power plants) are not going to get the coal from Coal India as they were promised because of limitations on the infrastructure side.”

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ASO impounds non duty paid Toyota Corolla car FAISALABAD: The Customs Anti-Smuggling Organization has impounded a smuggled Toyota Corolla worth Rs 16,28,160 involving duty and taxes to the tune of Rs828160. Sources told Customs Today, that in pursuance of information the ASO special team intercepted a non duty paid Toyota Corolla car bearing registration number HD-474 Islamabad model 1993 near Bhalwal Road Sargodha. At the time of detection the vehicle was found and parked on road.

Saturday, March 10, 2018

CUSTOMS BULLETIN

customs Dry port peshawar exhibits reasonable potential by earning Rs455m PESHAWAR tARIQ DeRYA

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he Customs Dry Port Peshawar collected Rs455 million of revenue under all the heads during the month of February FY17-18. According to details given by Dr. Tahir Iqbal Khattak, Deputy Collector, Peshawar Dry Port that, during the month of February, the dry port showed satisfactory performance under all the heads. During said period, the dry port fetched Rs147.03million of Customs Duty (CD) while it earned Rs1.51million revenue under miscellaneous heads. Tahir told CT that the Peshawar Dry Port earned Rs58.35million under the head of Regulatory Duty (RD) on Imports while it generated Rs169.91million under the head of Sales Tax (ST) as well as the Peshawar Dry Port received Rs30.40million as ST VM Com-Imp whereas it got Rs79.00million of revenue under the head of Additional Income Tax (AIT). He said that the Peshawar Dry Port is working hard to meet the revenue target assigned for 3rd Quarter FY17-18. He further said that the customs staff of the MCC Peshawar, including dry port staff,

is working hard to not only chase the handsome revenue during 3rd quarter but they will also try to exceed the assigned revenue tar-

gets under all the heads during said period. He said that, under the command of Dr. Saeed Khan Jadoon, the Peshawar Dry Port is

working very smoothly by providing friendly atmosphere to the business community. He added that the Collector MCC Peshawar

always prefer to solve the matters related to the importers as well as exporters on propriety basis, he concluded.

NAB court authorises inquiries against NtS, punjab Health Dept ISLAMABAD

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he National Accountability Court has authorised inquiries against the National Testing Service (NTS) management and the Punjab Health Department for alleged irregularities and corruption. The decision to this effect was made at the bureau’s Executive Board Meeting (EBM)

held under the chairmanship of Justice (r) Javed Iqbal. The EMB also decided to launch an inquiry against the management of Pakistan Steel Mills (PSM). They have been accused of causing a loss of Rs 7.5 billion to the national kitty by “illegally” withdrawing provident funds and gratuity of employees. It accorded approval to conduct another inquiry against Karachi Development Authority (KDA) ofQicers and others for allegedly changing the status of welfare plots into residential and commercial ones, inQlicting a huge loss to the national exchequer.

The EBM authorised yet another inquiry against Port Qasim Authority Managing Director Abdul Sattar Dero and others. It also decided to initiate an inquiry against Khyber Pakhtunkhwa (KP) Chief Minister Pervez Khattak, KP Chief Secretary Khalid Pervaiz and others for leasing out 275 acres of forest land to Siemens Group of Companies by alleged abuse of authority and corruption. Investigations were also approved against former Quetta Development Authority director general Noor Ahmed Pirkani and others for alleged illegal allotment of plots.

The bureau authorised investigations against former Balochistan food minister Azhar Hussain and others for alleged corruption to the tune of Rs 211.848 million in the purchase of wheat in Pishin. Addressing the meeting, Javed Iqbal said that corruption was a cancer, which should be eliminated altogether. The elimination of corruption is national responsibility of NAB ofQicers, he said. Meanwhile, National Accountability Bureau Multan arranged a ceremony has to distribute cheques worth Rs9.21 million to 35 affectees including four of

Published by M S Raza Oﬀ# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,oﬀ I.I. Chundrigar Road, Karachi

provincial government departments. The ceremony was chaired by NAB Director-General Atiq-ur-Rehman, who handed Rs4.4 million to General Manager (South) National Highways Authority. The amount was recovered during investigation against Rana Amjad Ali, former Land Acquisition Collector/ Assistant Commissioner Ahmedpur East and others. Similarly, Rs1.9 million were given to 31 affectees. The amount was recovered during investigation against Mian Naveed Aziz of Pak Mushroom project in Multan.