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ISLAMABAD

TARIQ DERYA

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he MCC Islamabad earned an extra revenue of Rs4416million from July to 10th of March FY2017-18 against an assigned revenue collection target under all the heads. According to details given by ZuliQkar Ali Chaudhry, Collector Model Customs Collectorate (MCC) Islamabad, that the collectorate received Rs15072.91mil-

lion under all the heads against an allocated revenue target of Rs10656.75million. He was added that the collectorate achieved 141.44% growth against an earmarked revenue target under all the heads while it showed 97% revenue performance against an assigned revenue target under the same heads for the entire FY17-18.

He further said that the collectorate has been assigned revenue collection target of Rs15559.23million under all the heads for

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FY17-18. The Collector MCC Islamabad told CT that, during above said period, the collectorate earned Rs5139.40million of Customs Duty (CD) against an allocated revenue collection target of Rs4468.79million. He added that the collectorate gained 115.01% revenue against an earmarked target of CD for Qirst eight months and 10 days of March FY1718. The collectorate showed 75% achievement against an assigned annual revenue collection target as CD.

Dry Port Islamabad falls short of set collection target of CD by 9%

Customs Export retrieves evaded taxes from defaulter companies

No exemption of duties, taxes on gift scheme: Collector Jamil Nasir

DG Valuation issues customs values of Egg Power vide VR No 1265/2018

Faisalabad ASO confiscates huge quantity of contraband items

Margallah Dry Port Islamabad showed -9% decline of Customs Duty | SEE pAgE 02 |

Customs Export has recovered an evaded amount of taxes and duties of Rs13.08m | SEE pAgE 03 |

Collector Jamil Nasir has said that there is no exemption of duties | SEE pAgE 04 |

DG Valuation has revised the customs values of Egg Powder Valuation Ruling | SEE pAgE 09 |

ASO has seized contraband items worth Rs29,614,786 in the month | SEE pAgE 16 |

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All Customs Stations go surplus by earning Rs35m of CD Wednesday, March 14, 2018

Islamabad

ISLAMABAD: All the Customs Stations of the MCC Islamabad collected a surplus revenue of Rs35million of Customs Duty (CD) during the month of February FY17-18. According to details explained by the sources of Model Customs Collectorate (MCC) Islamabad that, during above said period, all the stations, consisting of IDP, AFU, Car Section, C.Bond, UAB, AB and IMO, received Rs546.05million gross revenue collection as Customs Duty (CD) against an allocated revenue collection target of Rs510.59million.

Dry port Islamabad falls short of set collection target of cD by 9 percent

ISLAMABAD

ISLAMABAD

nAEEm uLLAh TARIQ

TARIQ DERYA

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he Appellate Tribunal Inland Revenue (ATIR) reserved a decision after hearing arguments and submission of record by parties during a recent week.

Meanwhile, the tribunal adjourned the hearings on other cases. Accountant Member Dr Ghulam Mujtaba Bhatti was hearing the case involving the Federal Board of Revenue and M/s Klaguardia Logistics. M/s Klaguardia Logistics had challenged the recovery of outstanding income tax by the LTU Islamabad. M/s Klaguardia Logistics submitted that the department had issued demand for the tax year 2016 under the head of income tax under the provisions of Income Tax Ordinance2001. The Federal Board of Revenue (FBR), officers of the LTU including Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and Appellate Tribunal Inland Revenue (ATIR) were made respondent in the case. The case was remanded back to the tribunal by the IHC a couple of months ago. This case, one of the many remanded back ones by the IHC, is being heard at the tribunal.

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he Margallah Dry Port Islamabad showed -9% decline of Customs Duty against an assigned revenue collection target for the month of February FY17-18 while it fell short of 14% Customs Duty during the same period of corresponding FY16-17.

According to details told by ofQicial sources of Model Customs Collectorate (MCC) Islamabad that, during the month of February, the Islamabad Dry Port (IDP) showed a shortfall of Rs23.65million of Customs Duty (CD) against an allocated revenue collection target for the month of February FY17-18.

The sources told CT that the IDP Islamabad was earmarked Rs269.40million of revenue collection target of CD during the month of February FY17-18 while it earned Rs245.75million under the same head. It was told that the IDP earned a smaller amount of Rs40.09million as CD against a revenue collection during February FY16-17.

It was added that Deputy Collector IDP is optimistic that the IDP will earn a surplus revenue during 3rd Quarter of FY17-18. It was further said that, during Qirst seven months (July to January) FY17-18, the IDP generated Rs2879million of CD while it did Rs400million under head of CD during month of January FY17-18. It re-

ATIR reserves judgment on recovery of outstanding Income Tax

spectively received Rs410million in the month of December, Rs279million CD in the month of November FY17-18 whereas it earned Rs369million under the same head during the month of October FY17-18. The

sources told CT that, during the month of September FY17-18, the IDP collected Rs320million while it received Rs344million of CD during the month of August FY17-18 and the IDP earned Rs318million of revenue dur-

ing the month of July FY17-18 under the head of CD. The sources told the correspondent that the IDP is struggling hard to meet the assigned revenue target under the head of CD for the month of March FY17-18.

Ihc seeks record of cases involving Dg I&I, ATIR

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ISLAMABAD

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he Islamabad High Court (IHC) has directed parties to submit the record of cases involving Directorate General of Intelligence and Investigation, and Appellate Tribunal Inland Revenue and dated in office the hearings during recent week. A division bench of the IHC comprising of Justice Athar Minallah and Justice Mi-

angul Hassan heard the matters and issued directives. The bench had earlier relisted the cases including the one filed by M/s Awan CNG Re-Filling Corporation (Private) Limited. The company had filed cases against Collectorate of Customs. The bench had also dated in office the hearing of matters filed by DG Intelligence and Investigation against Malik Muhammad Ajmal Khan. M/s Comfort Sales Corporation had filed case against ATIR and customs department.

M/S Comfort Sales Corporation had filed case against ATIR and customs department. M/S Comfort Sales Corporation had challenged the act of recovery of said amount

by Commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty.

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Tax evasion of Rs9.66m committed by Afreen Autos uncovered by PCA KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and taxes evasion of Rs9.66million by M/s Afreen Autos Karachi, it is learnt here.

Sources told Customs Today that M/s Afreen Autos Karachi imported a consignment of special vehicles’ paint, radiator net, alloy rim, seat covers and other things and got it cleared from the PICT Karachi vide GDs on December 7, 2017 by paying customs duty at 10 percent after claiming the benefit of SRO 568/2007.

court sends suspect on physical remand in diesel smuggling case

Wednesday March 14, 2018

Karachi

customs Export retrieves evaded taxes from defaulter companies

KARACHI

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cting Judge of Customs Taxation and Anti-Smuggling Court has sent a suspect, Muhammad Bilal, to the Customs Department on physical remand. Bilal was booked for attempting to smuggle non-duty paid 14,000 liters Iranian-origin high speed diesel worth Rs 1,360,000. During the hearing, the investigation officer produced the suspect before the court and informed that a team of Anti-Smuggling Organization intercepted a Hino truck and recovered 14,000 diesel. He submitted that the suspect was asked to produce lawful documents of diesel, but he failed to provide any lawful documents, therefore, he was arrested and diesel was taken into custody by the customs authorities.

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Sindh police seek access to records of fBR, SBp and nadra KARACHI

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ith the aim to nab terrorists and curb the menace of terrorism, the Sindh police have sought access to the records of Federal Bureau of Revenue (FBR), State Bank of Pakistan (SBP) and Nadra. Sindh Additional IGP of the Counter-Terrorism Department Dr Sanaullah Abbasi finalised the draft after taking inputs from different units of the Sindh police, law-enforcement agencies fighting terrorism in their respective countries and key men from different walks of life who identified the causes behind growing extremism and militancy. The draft proposed crucial measures needed for well-coordinated and result-oriented fight against terrorism. It also suggested strong border management and high-tech video surveillance systems, and smooth coordination between law-enforcement and intelligence agencies.

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KARACHI

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he Customs Export has recovered an evaded amount of taxes and duties of Rs13.08million from defaulter companies which were issued with notices to pay the outstanding dues.

Sources told Customs Today that, during a scrutiny of the import data, it was revealed that M/s Muqeeem Garments and Export Karachi availed undue beneQits and concessions by importing different consignments after misusing the SRO 567 through Examiner Majid Khan on October 12, 2017. Sources told Customs Today that the company was allegedly involved in the tax evasion of Rs7.50million. After detecting the tax evasion; the Customs Export served on it with a Qinal notice on February 12, 2017 to deposit the evaded amount within 14 days.

After receiving the notice, the management of the M/s Muqeeem Garments and Export Karachi deposited the evaded amount in the ofQicial account of the Customs Export on 1st of March. On the other hand, the management of the M/s Ameen Electronics also cleared Rs5.58million of taxes and duties. Sources told the correspondent that M/s Ameen electronics also availed undue beneQits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities served on it a Qinal notice

on 16, 2018. After receiving the notice, the management of the M/s Ameen Electronics deposited the evaded amount of taxes. Meanwhile, The Customs Export has recovered an evaded amount of taxes and duties of Rs11.08million from defaulter companies which had been issued with notices to pay the arrears.

Sources told Customs Today that, during a scrutiny of the import data, it was revealed that M/s Tufail Fertilizers availed undue beneQit and

Sources told the correspondent that m/s Ameen electronics also availed undue benefits and concessions and avoided paying taxes according to the customs bylaws

pcA uncovers evasion of duties & tax by faizi marble

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KARACHI

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he Directorate Customs Post Clearance Audit has unearthed an evasion of duties and tax of Rs6.89million committed by M/s Faizi Marble and Export. it is learnt here.

Sources told Customs Today that M/s Faizi Marble and Export imported a consignment of marble polish chemical, polish machine’s accessories and got it cleared from the PICT Karachi vide GDs

on November 12, 2017 by paying customs duty at 10 percent after claiming the beneQits of the SRO 568/2007.

However the subject items were correctly classiQiable under the PCT 2548.2507 attracting customs duty at 14 percent and income tax at 12 percent, thus, by way of mis-declaration of classiQication, the company evaded/short-paid Rs6.89million. The goods were cleared by Head Examiner ShaQiullah Niazi. Sources said that the importer violated the provisions of Section 36 (8) & (7A) of the Customs Act-

1969, Section 28 read with Section 38 of the Sales Tax Act-1990 and Section 25 of Income Tax Ordinance 2001 punishable under clauses (224) and 247 of Section 141(9) of the Customs Act1969, Section 47 of the Sales Tax Act1990 and Section 23 & 58 of Income Tax Ordinance 2001 and Section 8-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of the Income Tax Ordinance 2001.

concession after importing different consignments by misusing the SRO 567 through Examiner Usman Ali on December 9, 2017. Sources further said that the company was allegedly involved in the tax evasion of Rs6.50million. After detecting the tax evasion, the Customs Export served on the company a Qinal notice on January 30, 2018 to deposit the evaded amount within 14 days, but the defaulter company failed to deposit the amount.

pak rupee closes firm he Pak rupee on Monday closed firm against the US dollar both in open market and interbank. As per the local money market, the dollar remained unchanged both in open currency market and interbank for selling at 112.15 and 110.50 respectively. On Friday, the greenback shed 10 paisas in open currency market for buying at Rs111.85 for selling at 112.15.

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PRA to celebrate Tax Day Wednesday March 14, 2018

Lahore

LAHORE: To celebrate Tax Day on 10th April, PRA Chairman Dr Raheal Ahmed Saddiqui has organised a meeting at PRA headquarters with all officers and relevant stakeholders.

The strategies regarding proper celebrations of Tax Daywas discussed in detail. It was also decided that the campaign, which is to start on April, should focus on all tax related key areas and should also target educational institutions as they are the future of the nation. It is worth mentioning here that PRAhas been celebrating Tax Day since 2016 and has made it a symbolic way to contact its taxpayers.

Additional collector issues no exemption of duties, taxes on show cause notice to gift scheme: collector Jamil nasir owner of nDp goods LAHORE

LAHORE

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ollectorate of Customs Adjudication Additional Collector Farhat Ali has issued a show cause notice to the owner of the non-duty paid foreign origin paper in Rims and Ningbo brands.

According to the details, the staff of the ASO Lahore intercepted a Hino truck bearing registration no: TBJ386 (Lasbela) near Sagian Bridge.

The person sitting on the driving seat introduced himself as Mohammad Razaq. On query, the said person that the goods were loaded in Karachi and were meant for delivery near Sagian Bridge Lahore. During search of the vehicle, the ASO team recovered a huge quantity of non-duty paid foreign origin papers. Anti Smuggling

fBR recovers Rs2m from singer Rahat fateh Ali khan ederal Board of Revenue (FBR) has freeze bank accounts of renowned singer Rehat Fateh Ali Khan. Sources told Customs Today, that during scrutiny of income tax data of singer it was revealed that Rahat Fateh Ali Khan failed to submit his income tax returns of tax year 2015.

Sources told that Rahat Fateh Ali Khan is defaulter of Rs3.2 million. After detecting tax evasion FBR issued him a show cause notice asking him to deposit the amount at the earliest to avoid any stern action. Despite issuing many notice Rahat Fateh Ali Khan failed to clear the outstanding amount against him. Now Federal Board of Revenue in last attempt attached his bank accounts which he operates in Bank Alfalah Z Block Defense Housing Authority and recovered Rs2 million. The operation was conducted under the direct supervision of Deputy Commissioner Yasir Mansoor while Inspector Moeenuddin and Mukhar Jat take part in the operation. –CB Report

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Organization team asked the driver of the vehicle to produce any relevant legal documents regarding possession and transportation of these papers but he remained failed. After his failure Customs ASO team seized the paper and vehicle and forwarded the case to Customs Adjudication for further legal proceedings. Additional Collector Farhat Ali issued the show cause notice to the owner of the goods asking him to appear in person in the ofQice of Additional Collector Customs Adjudication Air Freight Unit Allama Iqbal International Airport Cargo Complex on March 28, 2018 at 9 a.m. along with legal documents and evidences failing which ex-parte proceedings will take place which led to the seizure of entire goods. It is necessary to mention here that Collectorate of Customs Adjudication expedited their efforts to conclude hearing of pending cases on priority basis.

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ollectorate of Customs Appraisement Collector Jamil Nasir Khan has said that there is no exemption of duties and taxes on gifts above Rs20,000/-.

Talking with Customs Today, Collector Jamil Nasir said that gifts which are less amount of Rs20000 are entitled to get excemption. He said that there are reports that all those vehicles which were imported on gift scheme will be entitled to get exemption. He said that “CC” category applied on all these vehicles which were imported through gift scheme. Collector Jamil Nasir Khan most of the importers prefer to clear their vehicles through Port Mohammad Bin Qasim Karachi. He said that Collectorate of Appraisement is taking every possible measure to facil-

itate the business community of our country. He said that Collectorate is adopted comprehensive strategy to

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achieve revenue collection target assigned by Federal Board of Revenue for current Fiscal Year 2017-18.

fTo remands back tax refund appeal court issues fresh warrants for alleged smuggler filed by m/s Techno commercial he Special Court of Customs otherwise he will be declared as

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he Federal Tax Ombudsman (FTO) remanded back tax refund appeal Qiled by proprietor of M/s Techno Commercial against the Regional Tax OfQice-II (RTO-II) Lahore. FTO advisor Mian Munawar Ghafoor heard the case Qiled by proprietor of M/s Techno Commercial in which counsel for the appellant argued that RTO-II had failed to release the refund to the appellant of three years. He said the RTO had been collecting excessive tax from the company for the last three years.

He approached the ofQicers concerned many times for release of refunds but the RTO-II ofQicials did not entertain his requests, even after the passage of a reasonable period. Finally, the appellant decided to move the FTO seeking his intervention in the case. The counsel appealed the FTO advisor to direct the RTO to clear the refund claims at the earliest. The counsel further said that delay in release of refund claims put burden on the taxpayers, adding that the RTO should audit the cases. –CB Report

Taxation and Anti-Smuggling has issued warrants for a suspect wanted in a smuggling case.

According to the details, Muhammad Amir son of Muhammad Saleem, a resident of Garh Maharaja district Jhang, was issued many notices to appear before the court for attending the hearing.

But, he remained reluctant to appear before the court and defend the imposed allegations; therefore, the Customs Court has issued warrants directing him to appear before the court within thirty days

proclaimed offender. Muhammad Amir is wanted by Customs Faisalabad in case bearing number 35/15 against smuggling. Customs Court has warned the accused to appear in person in fifteen days otherwise more stern action will be taken against him. Meanwhile on Monday 12 other cases were also scheduled for hearing before the Customs Court. Most of the cases were adjourned without any proceedings because of non-availability of the concern parties and lawyers of the cases. –CB Report

fTo hears tax refund appeal of m/s haji nazakat Ali & company

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LAHORE

SAJID nAwAZ

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ederal Tax Ombudsman (FTO) Advisor Mian Munawar Ghafoor has heard Rs 0.5 million income tax refund appeal and fixed the case for Monday next. The case was filed by proprietors of M/s Haji Nazakat Ali & Company

against Zone-III of Regional Tax Office (RTO-II) Lahore. During the proceedings of the case, the counsel for the appellant argued that the RTO-II had failed to release sales tax refund to the appellant since the last two years. He said the RTO-II collected excessive taxes from the company during the last two years. The petitioner approached the officials concerned

several times for the release of refunds, but the RTO officials failed to clear refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking intervention in this case.

The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims on priority basis.

The counsel further said that delay in release of refunds put burden on

taxpayers, adding that the RTO-II should make audit of the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO-II argued that the appellant has not submitted all record to the office for claiming refunds. If appellant provides the accurate record, the RTO-II will release refunds after a proper assessment, he added.

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KARACHI: The Pakistan Customs has unearthed a racket of betel nuts smugglers who got cleared the consignments of betel nuts under the garb of iron and steel coils.

At least four Karachi-based traders were using importers of other cities for smuggling of betel nuts as the legal import of betel nuts had been subjected to completion of necessary documentation and certiQicates.

The suspects removed the betel nuts from containers and Qilled them with the iron/steel coils en-route to Lahore Dry Port from Karachi on transshipment permits.

The network comprised Jameel Ali, owner of M/s Ajmair Impex, Lahore, Directors of M/s Airotor Transport and Logistics, Karachi the bonded career, Directors of M/s Modern Shipping Agencies Karachi, M/s Sky Shipping Lines LLC Dubai, UAE, and four traders of betel nuts from Karachi. The four traders are identiQied as Abdul Mueez Bawani, Azeez Ahmed, Owais Rasheed and ShaQiq and the Customs ofQicials have Qiled an FIR against them.

M/s Ajmair Impex Lahore imported the consignment, comprising on two containers registration numbers BAXU2588107 and MAEU 7813519 were arrived from Dubai on 14th February and TP for Lahore Dry port was Qiled on 23rd Feb-

Wednesday, March 14, 2018

ruary, 2018.

The consignment was declared as galvanized plan sheets, got cleared from Customs Collectorate Appraisement West for Lahore by the private bonded career company M/s Airotor Transport and Logistics Ltd, Clifton Karachi on vehicles numbers E2082 and TKA-727.

According to the FIR number 03/2018 registered by Collectorate of Customs Appraisement dry port Mughalpura, Lahore the importer and

bonded career with the assistance of other accused smuggled the betel nuts under the garb of galvanized plan sheets and removed the betel nuts from the containers during transshipment to Lahore and supplied the smuggled betel nuts to Karachi.

This is the second FIR against the M/s Ajmair Impex during last two weeks as ten days ago it was booked when a consignment of the smuggled betel nuts was intercepted by the Customs Appraisement East Karachi and R&D team of East seized 25.250 MT betel nuts smuggled by the Lahore based company under the garb of galvanized plain sheets.

It is pertinent to mention that price of betel nuts has raised from 300 rupees per kilogram to 2500 rupees per kilogram due to the restriction on its import and till now approximately over 200 containers of betel nuts are stopped at all ports and containers terminals of , eel Ali Karachi awaiting for clearance. m a J d , prise e r m Apex court also directed FBR’s o o h c La twork mpex, and customs ofQicials to ensure I r i d a n The ne a ort s Ajm p / s that low quality and hazm n f a r o rT owner Airoto reer, ardous betel nuts could not be s a / c m d f e ond ors o b t supplied into the country as c e e h r t i D ng chi Shippi the youth of all major cities of , kara s n c r i e t s d i Log ng i /s mo p Pakistan specially Karachi m p i f h o S ors /s Sky bearing and suffering all the s m r Direct , e i d h a c r ra four t negative consequences of the ies ka E, and Agenc A u , i i use of these betel nuts in great a h c b a u r D a k Lc context as mouth cancer on rise s from Lines L el nut t e b in youngster for using Gutka, Mainf o puri, Mawa and other products of low quality and hazardous betel nuts.

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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

possible risks to economy

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s the general elections are approaching fast, the economy of Pakistan could experience a significant decline in its growth rate as, usually; no one in the interim government takes responsibility of the economic affairs. On another note, the International Monetary has expressed concern over widening external and fiscal imbalances, reduction in foreign currency reserves and emerging risks to the financial outlook. The macroeconomic stability, which the government had achieved after entering a three-year $6.64 billion multitranche Extended Fund Facility with the IMF, was lost soon after Ishaq Dar left as the finance minister. Now the fund managers have advised the government to refocus on nearterm policies to get back to fiscal discipline and minimize the risks of economic lost. There was a need to adopt austerity measures at the higher levels and maintain medium-term debt sustainability, but the government failed on both the accounts. The country’s fiscal deficit is growing and could reach 5.5 percent of the gross domestic product and the current account deficit could cross 4.8 percent of the GDP. It is believed the economic growth rate would stay at 5.6 percent instead of 6 percent projected in the budget. Though the nearterm economic growth outlook is favourable, risks to macroeconomic resilience could jeopardize the overall outlook of the economy.

When loans are the only option for the government to resolve financial troubles, the jugglery of words would not resolve chronic issues. The fund wants the government to do more, cautioning it on external liabilities, whereas the public sector entities are continuing to incur losses. The government will have to concentrate on debt management to lower fiscal risks. Experts firmly believe that stimulation of the industrial sector should be main priority of the policymakers instead of foreign loans. The so-called fiscal discipline cannot be strengthened by burdening the nation with more loans and more taxes. The government will also have to stop overspending in non-productive sectors.

Besides austerity measures, tax concessions and investment friendly policies need to be implemented. Creating difficulties for imports will create more risks than any benefit as the government had earlier slapped duties on several hundred commodities to curtail volume of exports.

Seeking investment from Arab states T

LAHORE

DR AfTAB AfZAL

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he other day, official of the Board of Investment invited Kuwaiti businessmen and entrepreneurs to take full advantages of liberal investment opportunities in Pakistan. The government has enacted laws to protect foreign investment and investors are allowed to repatriate their capital and profits under various schemes. There is no doubt in the notion that the present government is trying to persuade investors from all over the world to establish businesses in Pakistan. But most of the government endeavours are limited to lip-service and with-

out providing level playing field to the local and foreign investors. After all government actions and reactions, policies and schemes, Pakistan still has very poor ranking in the ease of doing business index. Tax rates are either high or irrational and tax base is restricted. In the presence of large-scale presence of black sheep in the official cadre, every effort to contain corruption backfired. When a big chunk of the government machinery is interested in the personal affairs, the official business is sent to the abeyance.

Pakistan has vast fertile agricultural lands, largest canal irrigation system in the world and strong industrial base, but it has

to import even vegetables from India and China. On another note, the Arab investors, whether Saudis, Kuwaitis or Emiratis, they all love to invest in European countries where besides business opportunities they have free access to kinds of merrymaking facilities. The Pakistani government has provided them every facility of investment, but there interest is limited to killing thousands of endangered species every year in Pakistan. The so-called Arab brethren need to be told that enough is enough and they should not be allowed to violate the laws of the land. They should not be allowed to liter our land for any reasons. As a matter of

fact, Pakistan needs US and European investment who have technology and they mean business. There is no use of wasting time, energy and money on Arab investors who look down upon everything in Pakistan and have no interest in technology. If they don’t want to invest in Pakistan we also need not to ask them to do so. However, before inviting foreign investors, we have to put our house in order as a priority.

Development of infrastructure is the principle requirement and this should be done at the first place. The government needs to take steps to better its ranking in the ease of doing business index and has to revise and rationalize tax rates and tax laws.

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SRB restores ST registration of 11 taxpayers KARACHI: Sindh Revenue Board (SRB) has restored sales tax registration of 11 taxpayers, whose registrations were suspended on non-compliance.

Sources said that, SRB has asked to restore the sales tax registration of 11 taxpayers, who were suspended along with 4,338 taxpayers on July 25, 2017. In view of the foregoing position, the SRB asked the PRAL to restore the registration of taxpayers listed below: M/s. Bilal Ahmed Contractor M/s. Al-Rehmania International M/s. Chetan Jaipal Government Contractor M/s. Nawal Ali Government.

TDAp endeavoring to facilitate exporters

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LAHORE

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he Trade Development Authority of Pakistan (TDAP) is endeavoring to help and facilitate exporters of all product sectors with an aim to capitalise their potential for the growth of trade and investment in the country. Mian Riaz Ahmed, Director General Trade Development Authority of Pakistan (TDAP), stated this while talking to a two-member delegation led by President Pakistan Chapter TUMSIAD Chaudhry Anees Iqbal who called on him at TDAP. The DG apprised the delegates about trade facilities which the TDAP was providing to exporters of the country. Anees Iqbal informed the DG TDAP that there will be the 8th international health congress being held in Turkey in the first week of May this year and that will be offering

Wednesday March 14, 2018

National

Dg Valuation issues customs values of Egg power vide VR no 1265/2018 T

KARACHI

wAQAR AhmED AnSARI www.customsbulletin.com

he Directorate General of Customs Valuation has revised the customs values of Egg Powder Valuation Ruling No: 1265/2018 under Section 25A of the Customs Act1969. Earlier, customs values of Whole Egg Powder, Egg Yolk Powder and Egg Albumin/White Powder (High Gel) were determined and notiQied vide Valuation Ruling No. 1086/2017 dated 17-03-2017.

A representation was received from local manufacturer of the subject items wherein they contended that values need to be re-aligned with international market trend.

Moreover, they also complained that notiQied customs values in the ruling are not being implemented in certain clearance formations. In response, this Directorate General immediately sensitized the concerned clearance collect orates and requested them to ensure that existing notiQied values are correctly implemented. Besides, this Directorate General also initiated an exercise for re-determination of customs value for the subject goods.

They also contended that they are the local manufacturers, and they have the capability of meeting the demands of local industry. They need support from the government in this regard. On the other hand, representatives from M/s National Foods and M/s Mitchells Pakistan stated that customs value of egg

powder notiQied vide existing VR are already on higher side and need to be rationalized downward in line with actual existing values in the international market. They stated that they are the leading manufacturers of multiple food products, contributing billions in the national exchequer and that they always de-

clare the actual price and never resort to under-invoicing. They further pointed out that they have recently introduced their new product ‘mayonnaise’ and they have done heavy investment for setting its plant and machinery. They also submitted the copies of import GDs and invoices and L/Cs.

pak-china to exchange trade data from April 30 KARACHI

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tremendous opportunities for the Pakistani exporters with specific to the surgical sector of Pakistan. He informed the DG that their organization will be offering incentives to Pakistani exporters for their participation in the event. Talking about improving the export sector, the DG informed the delegates that Sports Goods Association and Gloves Manufacturers Association had shown great interest in participating in the upcoming China International Import Expo being held in China in November this year.

akistan and China will start exchanging trade data digitally from April 30 in a bid to check under-invoicing of imports, officials said that, amid swelling bilateral trade that is highly skewed in favour of the world’s second largest economy. Tax officials said an electronic data exchange platform will become operational by the end of next month. “The platform’s beta testing is scheduled this month,” an official in Federal Board of Revenue (FBR) said.

Officials said Pakistani and Chinese authorities will sign a memorandum of understanding for data exchange. The draft of the agreement has already been finalised, they added. An official said Chi-

nese authorities agreed in principle to launch electronic data exchange in a meeting between the officials of commerce ministry and China last month. “The trade data exchange will help in curbing under-invoicing of imports from China, which is hurting Pakistan’s industry,” the official added.

There is a huge trade deficit for Pakistan in trade deals with China.

Total trade volume between the two countries significantly increased to $13.77 billion in the fiscal year of 2015/16 from four billion dollar in 2006/07. During the period, Pakistan’s exports grew to $1.69 billion from $575 million.

Imports from China, however, witnessed a sharp growth to $12.1 billion from $3.5 billion. A business advocacy group, in a report, emphasised standardisation and transparency in data collection.

“There are great discrepancies between Pakistan’s and China’s reported data (particularly for Pakistan’s imports from China, where the discrepancy is $5.5 billion), due to possible under-invoicing, which would mean that severe revenue losses and tax evasion are taking place,” Pakistan Business Council said. A tax reform commission constituted by the ministry of finance in 2014 also unearthed a massive under-invoicing and misdeclaration of $3 billion related to merchandise goods imported from China. Pakistan implemented free trade agreement (FTA) with China in 2007. FBR conducted a study in 2015 on misuse of China free trade agreement by importers. The study analysed 50 tariff lines under which Pakistan and China trade their goods under the FTA. FBR’s study said the import

value declared before Pakistan Customs was short by $2.437 billion than what has been recorded

by China Customs as exports value to Pakistan on 37 tariff lines. “This is indicative of possible under-invoicing. On 13 tariff lines, the study said the import value declared before the customs is in excess of $829 million than what has been recorded by China customs as exports value of Pakistan. This is indicative of possible misclassification of those goods which attract higher duty rates but are cleared as goods attracting lower rates. Customs officials said the department has received several complaints, during the past couple of months, related to fake and forged certificates presented by importers and got cleared their consignments availing duty and tax concessions under China FTA.

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Preventive officer Muhammad Ali resigns Wednesday March 14, 2018

National Saif ullah assumes charge as Dg (Special Initiative) after promotion to BS-21

ISLAMABAD: Muhammad Ali, a Pakistan Customs Service officer of BS-16, has resigned from the government service.

The competent authority has accepted the resignation tendered by Muhammad Ali, last posted as Preventive Officer at Model Customs Collectorate of Preventive, Karachi.

manzoor Jokhio assumes charge as commissioner-IR (Zone-I)

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aif Ullah Khan, a BS-20 officer of Inland Revenue Service, has assumed charge as Director General (Special Initiative), FBR (HQ), Islamabad (Stationed at Karachi) on his promotion to BS-21. The officer, in pursuance of Board’s notification No. 0364-IR-I/2018 dated 23.02.2018, relinquished the charge of the post of Director General (OPS) (BS-20) (Special Initiative), FBR (HQ), Islamabad (Stationed at Karachi) Meanwhile, Imtiaz Ali Solangia, a BS-20 officer of Inland Revenue Service, has taken charge as Commissioner-IR (Zone-VI).

The officer, in pursuance of Board’s Notification No. 0301-IR-I/2018 dated 15.02.2018, relinquished charge of the post of Commissioner-IR (Zone-I), Large Taxpayers Unit, Islamabad with effect from February 19 and assumed the charge of the post of Commissioner-IR (Zone-VI), Corporate Regional Tax Office.

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Dr Aneela assumes charge as Assistant commissioner-IR r Aneela Javed Gondal, a BS-17 officer of Inland Revenue Service, has assumed charge as Assistant Commissioner-IR. The officer, in pursuance of Board’s Notification No. 0357-IR-I/2018, dated 22.02.2018, took the charge of the post of Assistant Commissioner-IR, (BTB Zone), Regional Tax Office, Islamabad.

Meanwhile, Shakir Muhammad, a Pakistan Customs Service officer of BS-18, has taken charge as Deputy Collector at Model Customs Collectorate, GilgitBaltistan. Shakir, pursuing the Board’s Notification No. 0213-C-II/2018 dated 02.02.2018 & No. 0281-C-II/2018 dated 14.02.2018, relinquished the charge of the post of Deputy Collector, Model Customs Collectorate of Port Muhammad Bin Qasim. –CB Report

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anzoor Ali Jokhio, a BS-20 ofQicer of Inland Revenue Service, has assumed charge as Commissioner-IR (Zone-I).

The ofQicer, in pursuance of Board’s NotiQication No. 0447-IRI/2018, dated 23.02.2018, relinquished the charge of the post of Commissioner-IR, Inland Revenue (Appeals), Hyderabad with effect from March 1 and took the charge of the post of Commissioner-IR (Zone-I), Regional Tax OfQice, Hyderabad on the same date.

Meanwhiel, Humaira Maryam, an Inland Revenue Service ofQicer, has assumed charge as CommissionerIR on her promotion to BS-20.

The ofQicer, in pursuance of

Board ‘s NotiQication No. 0365-IRi/2018, dated 22.02.2018, relinquished the charge of the post of

Commissioner-IR (OPS) (BS-19), Inland Revenue (Appeals-I), Lahore with effect from February 23 and

took the charge of the post of Commissioner-IR (BS-20), (Appeals-I), Lahore on the same date.

customs Export recovers evaded amount of Rs 13.31m from defaulter companies T

KARACHI

wAQAR AhmED AnSARI www.customsbulletin.com

he Customs Export has recovered evaded amount of taxes and duties of Rs 13.31 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 Yousuf Textile availed undue beneQits and concessions after importing different consignments by misusing the SRO 568 through Examiner Usman Ali on 19th December 2017. Sources further told that the company was allegedly involved in the tax evasion of Rs 5.45 million. After detecting the tax evasion, the Customs Export served on it a Qinal notice on 26th February, 2018 to deposit the evaded amount within fourteen days.

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Customs Intelligence frustrates attempt to smuggle dry milk, juices, other goods KARACHI: The Directorate of Customs Intelligence and Investigation has foiled a bid to smuggle the internationally recognized quality milk powder, Iranian juices and other items worth Rs08million during a special checking.

On Saturday, sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Chaudhary received a tip-off that some smugglers are trying to smuggle said goods from Quetta into Mirpur Khas.

He constituted a raiding team under the supervision of Superintendent Tariq Rana and others. The team enhanced the surveillance on Kuchlak Road and started searching of vehicles.

pcA uncovers tax and duty evasion committed by m/s Rex Traders KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs7.45million committed by M/s Rex Traders on, it is learnt here. Sources told Customs Today that M/s Rex Traders imported a consignment of electronics including AC, fans, TV sets & others, and got them cleared from the PICT Karachi vide GDs on September 15, 2017 by paying customs duty at 10 percent after claiming the benefit of the SRO 569/2007. However the subject items were correctly classifiable under the PCT 2514.2148 attracting customs duty at 14 percent and income tax at 12 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid

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Rs7.45million. The goods were cleared

by Head Examiner Najeeb Alam.

Sources told CT that the importer violated the provisions of Section 89 (2) & (2-A) of the Customs Act-1969, Section 25 read with Section 66 of the Sales Tax Act-1990 and Section 95 of Income Tax Ordinance-2001 punishable under clauses (24) and 245 of Section 478(5) of the Customs Act-1969, Section 78 of the Sales Tax Act-1990 and Section 25 & 478 of Income Tax Ordinance-2001 and Section 7-A of the Sales Tax Act1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance2001. It is necessary to mention here that the Post Clearance Audit has unearthed a number of cases during the last month of February 2018.

National

court approves interim pre-arrest of suspects in betel nuts smuggling case

fBR grants performance allowance to 6 female appraising officers ISLAMABAD

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ederal Board of Revenue (FBR) has granted performance allowance to six female appraising officers. The officers, including Nitasha Ahmed, Anika Malik, Ayesha Jamil, Uzma Kanwal, Faiza Shafi and Saima Sweety, posted at Model Customs Collectorate, Islamabad, were selected through the process of internal job posting (IJP). The officers were granted performance allowance equal to 100 per cent of minimum of their basic pay (in pay scale-2011) with effect from February 22 i.e the date of approval of the competent authority. Grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. 6(96)S(BIC)/2013-14 dated 06.03.2015 to be read with Para-10 of Finance Division’s O.M.No.1(3)/Imp/2015-360 dated 07.07.2015. The allowance will be discontinued in case prescribed terms and conditions are not fulfilled within one month from the date of issuance of this notification.

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KARACHI

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he Customs Court has granted interim pre-arrest bail to suspects, Muhammad Javed, Muhammad Shahid, Muhammad Arif and others, who were booked for smuggling 612,032 kilogram betel (Areca) nuts worth Rs 1.5 billion.

During the hearing, counsels for the suspects Qiled bail petitions and argued that they were falsely implicated in this case and they were ready to face trail, however, they had apprehension of arrest, therefore, the court might grant them bail till the Qinal decision in this case.

After hearing the arguments, the court granted them bail against the surety bonds of Rs 200,000 each and issued notices to the Customs Department for the next date of hearing. It needs to be mentioned here that earlier, suspects namely Khalid Ahmed, Proprietor of M/s Anees & Sons, Farhan Ahmed, Proprietor of M/s Farhan Impex, Ghulam Mehdi Nayani, Arif Shahban were also granted prearrest bail in the same case. According to the First Information Report against the suspects, a team of the Customs Department raided a private godown

Wednesday March 14, 2018

namely Arbaz Godown situated at plot no A-41 near, police station, SITE Karachi and recovered 8,536 bags weighing 612,032 kilogram smuggled/ non-duty paid foreign origin betel (Areca) nuts of poor quality, infested and unQit for human consumption worth Rs 1.5 billion. He informed the court that case was registered against Adnan, proprietor of M/s ABR Enterprise, Khalid Ahmed, Proprietor of M/s Anees & Sons, Farhan Ahmed, Proprietor of M/s Farhan Impex, Abdul Ghani Ronjah, Proprietor of M/s Kiran Food Products, Farheen Irfan, Proprietor of M/s

Rohain Corporation, Ghulam Mehdi Nayani, Arif Shahban, Mansoor Ahmed Proprietor of M/s Dilwala & Company and others to be ascertained during the investigation. He said that during the investigation, it was revealed that above mentioned suspects in connivance and collusion with each other and their other representatives, associates-in-crime have managed to store huge quantities of smuggled non duty paid foreign origin betel nuts unQit for human consumption in the private godown under the cover of import documents for illegal disposal of the same in local market.

‘pTDc should be funded for publicity in world media’

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ISLAMABAD

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akistan Tourism Development Authority (PTDC) should be funded for publicity and promotion of tourism sites in the world media besides facilitating participation of private sector in international tourism exhibitions, says a report issued by The United Nation World Tourism Organization.

According to the report, the involvement of Public Private Partnership for Infrastructure Development in the sector was also essential. Tourism opportunities in Pakistan were not less than any of

the world’s places, but due to many factors Pakistan could not achieve its right place in global tourism.

The main reason for lack of proper development in the tourism sector in Pakistan is non existence of good advertising and non-partici-

pation in global tourism event, which is causing a negative impression across the world. Provincial tourists are playing their role in promoting domestic tourism in their areas of jurisdiction, but projection abroad under federal umbrella is a

needed, through which tour operators and provincial tourists promote country’s tourism at world level.

The report, strongly recommended to transform PTDC into National Tourism Authority and lauded the tourism promotion efforts of Managing Director Pakistan Tourism Development Corporation (PTDC), Chaudhry Abdul Ghafoor.

UNWTO Experts Harry Huang and George Drakeop attended the United Nations Tourism Organization (UNWOO) workshop held January this year, reviewed the current situation of tourism in Pakistan and prepared a comprehensive report containing all the facts and Qigures.

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World Customs

Russia proposes to ditch flat individual tax regime

MOSCOW: Legislation has been tabled in Russia’s lower house of parliament, the Duma, to introduce a two-rate personal income tax regime, in place of the current flat tax regime.

The bill would create a new rate above the current 13 percent flat rate, of 18 percent for those earning more than RUB24m (USD422,620). The 13 percent rate would continue to apply below this threshold.A consultation is ongoing on the bill and the State Duma Committee on Budget and Taxes is currently reviewing the text.

Wednesday March 14, 2018

Apple loses french legal fight Trump tax plan a killer for expats in Australia over tax protesters E

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PARIS

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pple has failed to obtain an injunction to prevent tax protesters demonstrating in its Qlagship store in Paris. Apple’s application for an injunction was turned down by a district court in Paris. with the court concluding that there was no justiQication for limiting the protesters’ freedom of expression on the grounds that the protests may cause harm. The court also said that the protests were lawful and represented “a general interest campaign on the payment of taxes and tax evasion.” The court also rejected Apple’s request that the protesters be Qined a sum of EUR150,000 (USD185,000) and impose further damages if further demonstrations take place in its stores. Attac, an international tax justice campaign group, which was

Bills imposing tax on artists in Russia registered he Verkhovna Rada registered bills providing for the introduction of the tax for artists who perform in the territory of Russian Federation. This was reported by Vice Prime Minister of Ukraine. “The bill on tours in aggressor’s territory and the introduction of a target touring tax in support of the Ukraine’s Armed Forces for Ukrainian performers who are make tours to the aggressor country is registered in the Verkhovna Rada. It was introduced by 11 deputies from four factions and non-factional deputies,” Kyrylenko wrote. Judges have established that the taxation of a pension, starting from its certain size, violates a fair approach in establishing a pension, since it leads to its actual reduction Judges have stated that the taxation of a pension, starting from certain amount, violates a fair approach in establishing a pension, since it leads to its actual reduction. –CB Report

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behind the protests, said that it planned to hold more sit-ins at Apple stores in France.

Meanwhile, France will cover expected peak power consumption with massive power imports from Spain, Germany and other countries as frigid temperatures boost electric heating, RTE data showed.

France has Europe’s most temperature-sensitive electricity grid as about a third of French homes are heated with electric radiators and every one degree Celsius drop in outside temperature requires an extra 2,400 megawatt hours in power, equivalent to the power consumption of the city of Paris.

china’s January coal imports from Australia surge as blizzard hits

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hina’s bond market is expected to be included in the international bond index as soon as the end of 2018, Yicai.com reported.

Huang Jiacheng, bond investment director at Fidelity International, who was engaged in part of the assessment work on the index committee, revealed the group’s progress.

Most likely, the committee will also set up a certain period of observation. However, Huang also pointed

out that foreign capital still has concerns about China’s tax system, bond rating and liquidity before they invest in its bond market. Huang Yi, president of Bloomberg China, said tax standards of China’s bond market needs to be further clariQied. So far, foreign investors investing in nongovernment bonds are required to pay a withholding tax of 10%. The tax treatment of capital gains also remains to be clariQied. –CB Report

xpatriate Americans with businesses in Australia are in for a nasty surprise as a result of the Trump tax plan, experts say.

While much attention has been paid to the for giants like Apple and Google, in fact any dual US citizen with retained earnings in a private business located outside America will be hit.”If you own a private corporation, there’s a one-time tax that you’re going to be subject to and it’s a killer,” said Roy Berg, an American lawyer who works for Moodys Gartner Tax Law in Canada and is personally affected.

For example, a doctor with his own practice in Australia who has US dual citizenship or a green card and $2 million of accumulated wealth sitting in his corporation would have $300,000 of his hard-earned Australian dollars conQiscated by the US government this year.” Any individual US citizen or green card holder owning more than

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10 per cent of a “controlled foreign corporation” will be required to pay the tax within eight years, according to American Citizens Abroad. A CFC is an overseas business in which US shareholders control more than 50 per cent of voting rights. Under the old law, non-US corporations could retain any earnings above $102,100 on a tax-deferred basis. Companies of all sizes made use of this provision but it was the multinational giants stashing billions offshore that caused most consternation. White House chief economic advisor Gary Cohn has said an estimated $3 trillion in offshore wealth will be brought back to the US, although Wall Street estimates put the Qigure closer to $2.5 trillion. The US tax system is almost unique in that all citizens, regardless of other nationalities they may hold and where they live, are taxed on their global income and required to Qile annual tax returns in the US. Expat groups had hoped the Tax Cuts and Jobs Act would include switch to residence-based tax.

Iran bans using dollars in documents ran’s domestic media reported that the policy was in line with an ofQicial request by the Central Bank of Iran (CBI) and was speciQically meant to address Qluctuations in market rates of the dollar.

IRNA news agency quoted Mehdi Kasraeipour, CBI’s director of Foreign Exchange Rules and Policies Affairs, as saying that the move had become effective from Wednesday by virtue of a letter sent to the Ministry of Industry, Mines and Trade.

US banks are still banned from dealing with Iran as part of an old US trade embargo that still remains in place. Accordingly, this is believed to

have already effectively blocked any transactions with Iran which is based on US dollars because they would ultimately have to be cleared in the US. “Considering that the use of the dollar is banned for Iran and traders are literally using alternative currencies in their transactions, there is no longer any reason to proceed with invoices that use the dollar as the base rate?” Kasraeipour said. The ofQicial further emphasized that Iranian merchants would need to inform their suppliers to change the base currency from the dollar to other currencies so that the related import documentations can be proceeded at Iran’s entry points. –CB Report

Saudi Arabia suspends poultry imports from India

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RIYADH

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audi Arabia has imposed a temporary suspension on import of chicken and eggs in any form from India due to avian inQluenza outbreaks in some districts of Karnataka.The Agricultural & Processed Food Products Export Development

Authority (Apeda) said in a notiQication that the Ministry of Environment, Water and Agriculture of Saudi Arabia had imposed a temporary import suspension on all live birds, hatching eggs and chicks from India due to avian inQluenza outbreaks.Although Saudi Arabia contributes a mere 3 per cent to India’s annual poultry exports of $80 million, exporters fear similar reactions

from other importing countries.

Oman leads with 38 per cent share in total poultry exports, followed by Maldives (9.3 per cent) and Vietnam (7.6 per cent).“India is considered as one entity in terms of poultry farming. Hence, importing countries suspend purchase of poultry products from the entire nation in case of (highly pathogenic) avian inQluenza outbreak in a small town. Since In-

dia’s overall poultry exports is a very small portion of its industry size, the import suspension by Saudi Arabia is not going to have any impact on chicken and eggs,” said Balram Yadav, managing director, Godrej Agrovet, one of India’s largest players in poultry products and feed.Owing to repeated outbreaks of the virus, India’s poultry exports have declined over the last two years.

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China to actively expand imports in 2018 BEIJING: China will actively expand imports this year as it aims to further open up its market, said a government work report available to the media ahead of the annual parliamentary session Monday.

To encourage imports, China will host the first China International Import Expo this year and lower import tariffs on products including automobiles and some everyday consumer goods, according to the report.

“We will open our market wider to promote industry upgrading and more balanced development of trade, and to provide Chinese consumers with a broader range of choices,” it said.

Shipping Activity at port Qasim .T Yuhua Star carrying 9,800 tonnes palm oil took berth at Liquid Cargo Terminal.

Meanwhile two more ships, Chemicals carrier Central Park and Container vessel OOCL Washington also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was managed at the port at 41% on Wednesday where a total of seven ships namely, MSC Busan, Amadeus, Ionna Pol, Alam Molak, Ogino Park, Yuhua Star and AlSalam-II are currently occupying PQA berths to load/offload Containers, Soya been seeds, Coal, Phosphoric Acid, Palm oil and Diesel oil during last 24 hours. A cargo volume of 105,953 tonnes, comprising 64,647 tonnes import cargo and 41,306 tonnes export cargo inclusive of containerized cargo carried in 2,512 Containers (TEUs), (338 TEUs imports and 2,174 TEUs exports) was handled at the port during last 24 hours. Chemi-

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Ports & Shipping

first-ever container vessel mS TIgER arrives at gwadar port ISLAMABAD

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he first ever container vessel MS TIGER under Chin Pakistan Economic Corridor (CPEC) project arrived at Gwadar Port. Pakistan Navy Ships PNS DEHSHAT and KARAR escorted MS TIGER to Gwadar Port.

This new Ship Container Service namely Karachi Gwadar Gulf Express will connect Gwadar Port with the Middle East hub of Jebel Ali as well as the neighboring UAE ports of Abu Dhabi & Sharjah. After embarkation of more container of frozen sea food from Gwadar Port, the ship proceeded to Jebel Ali Port. An impressive ceremony was held at port on arrival of MS TIGER. The reception xeremony was attended by Commander Coast of Pakistan Navy, Rear Admiral Moazzam IIyas. The CPEC is a game changer project for Pakistan. Success of this project is a prelude to the economic prosperity of the

country and hence has taken a central stage in the economic, political and security calculus of not only Pakistan but the entire region. Considering the importance of the Gwadar Port as focal point of CPEC, its security is paramount. For this purpose, Pakistan Navy has raised

Task Force 88 to undertake defence of Gwadar Port and its surrounding areas. This Task Force is providing defence to Gwadar Port from seaward approaches and Merchant Vessels visiting the Port through deployment of Pakistan Navy assets.

Wednesday March 14, 2018

kpT ships movement and cargo handling report ollowing were the movements of ships and cargo handling at the Karachi Port Trust (KPT) during the last 24 hours, ending at 0700 hours. SHIPS ARRIVED: YM Cypress Container Ship Corona Tanker Mol Earnest Container Ship Crete I Container Ship Carvos Liberty Coal MTM Hong Kong Tanker SHIPS SAILED: COSCO Durban Glorious Industtrial Revolution MSC Ishyka Hansa Offenburg FPMC 21 Clemens Schult Cargo Handling Turnover: The total cargo handled at Karachi Port during the last 24 hours closed at 148,273 metric tonnes. The breakup shows that the port has handled 30,750 metric tonnes of export cargo and 117,523 Metric tonnes of import cargo during the said period. Commodity wise handling in metric tonns is given below. Commodity Import Export Total Containers 58,86626,531 85,397 BulK 65 682 747 Dap 1,530 1,530 Coal 3,313 3,313 Sugar 592 592 Wheat 1,945 1,945 Oil/Liquid 53,749 1,000 54,749. –CB Report

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Vietnamese exporters start to add value cals carrier “Ogino Park” and Bulk cargo carrier “Alam Molak” sailed out to sea on Thursday morning, while three more ships, Oil tanker “AlSalam-II” Container vessel “MSC Busan” and Bulk cargo carrier “Ionna Pol” are expected to sail on same day in the afternoon. Four ships, OOCL Washington, Central Park, Thor Courage and Pacific Victory carrying Containers, Chemicals and Coal are expected to take berth at QICT, EVTL, PQEPT and MW-4 respectively on Thursday, 1st March. While another bulk cargo carrier “Caravos Liberty” is due to arrive at Port Qasim on same day, and three more ships CMA CGM Amazon, Qingdao Tower and Uni Florida with containers are due to arrive at Port Qasim. –CB Report

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fter focusing on exporting large volumes of unprocessed goods for a long time, more and more Vietnamese companies are now turning to export of processed and valueadded products and improving their quality to penetrate global markets.

According to experts, this is a needed move if “made in Vietnam” products are to find a place in the global distribution and value chains.

After more than a decade of being the world’s largest processor and exporter of cashew nuts, the Vietnam Cashew Association (VCA) said it is time for the sector to change its export strategy to penetrate deeper into the

global value chain. This is why the sector has decided to reduce the import of raw cashew this year though it can result in lower exports, said VCA chairman Nguyen Duc Thanh.

We have researched and shifted our investment for the moment to produce more highly processed products such as saltroasted cashew, cashew snacks, cashew milk, and other products for export to add more value,” he said.

Le Thi Thanh Lam, deputy general director of Saigon Food, said her company invested in a modern production chain to produce more high-quality and value-added products for selling internationally.

This year, it would focus on processing seafood using a modern production chain and exporting salmon sushi, crab sushi, sea

bass kirimi, horsehead fish kirimi, basa fish fillet, shrimp sushi and other products to Japan, she said. This will be a stepping stone for the company to expand to other markets. Many businesses are also focusing on expanding cultivation of organic products to capitalise on the global trend.

Nguyen Lam Vien, chairman of Vinamit JSC, said the company has tied up with farmers to grow coconut, jackfruit and banana on a large scale without using chemicals. Organic certificates would open the door wide for Vietnamese farm produce to enter North America, Japan and the EU – markets that have stringent requirements in terms of products’ nutritional value, safety and environment-friendliness, he said.

Tran Van Linh, chairman of Thuan Phuoc Seafood and Trading Corporation, said: “A number

of Vietnamese shrimp processors have invested in producing valueadded products, heralding a new export age.” Last year, his company had earned 91 million USD from shrimp exports compared to 75 million USD in 2016, he said. Export volumes were up only 5 percent last year, but thanks to an increase in the export of value-added products, which accounted for 90 percent of the exports, export revenues were up significantly.” The story that the Vietnam Nutrition Food JSC (Nutifood) has signed a contract with Delori Foods International to export its PediaPlus dissolved milk powder for malnourished children to the US, the first time Vietnam’s milk powder will enter such a demanding market, has brought new hope and confidence to firms in the food sector.

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Mother, son arrested with drugs at Bacha Khan airport PESHAWAR: A mother, son duo, who were heading to Saudi Arabia, was apprehended at the Peshawar airport on Friday afternoon with drugs, officials said.

Civil Aviation Authority (CAA) officials said that they had intercepted the duo, who were scheduled to fly to Jeddah for performing pilgrimage.

Officials said that during a search of their belongings by the Airport Security Force (ASF), they recovered 950 grammes of crystal methamphetamines (known by its street name of ICE).

Wednesday March 14, 2018

Business

cpEc to ensure prosperity in pakistan: governor LAHORE

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unjab Governor Malik Muhammad RaQique Rajwana has said that ChinaPakistan Economic Corridor (CPEC) would prove to be a game changer and ensure prosperity in Pakistan.

The Governor expressed these views while speaking at the launching ceremony of annual Report on Economic condition: Review and Analysis-2017 prepared by Shahid Javed Barki Institute of Public Policy Institute (SJBIPPI) and Net Sol, at a local hotel. Former foreign minister Khursid Mahmood Kasuri, former State Bank of Pakistan’s Governor

pak-Afghan trade route reopens PESHAWAR

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Dr Ishrat Hussain, former foreign secretary Shamshad Ahmed Khan, Shahid Najam, Ali Touqeer Sheikh and other renowned personalities also spoke on the occasion.

2.7 million pakistanis living in Saudi Arabia, minister tells nA

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he Ghulam Khan trade route between Pakistan and Afghanistan in North Waziristan Agency was reopened on trial basis. Officials said that eight trucks loaded with miscellaneous items proceeded from Miramshah, the administrative headquarters of North Waziristan, to Afghanistan via Ghulam Khan. The trial will continue for 15 days.

Vehicles would also come from Afghanistan. Security was beefed up in the area and customs officials were also present at the check post.

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RaQique Rajwana was of the view that CPEC had not only great importance for Pakistan but also for the entire region, citing that the economic corridor would beneQit

immensely the far-Qlung and under developed areas as well as the agriculture sector. The Governor also appreciated the SJBIPPI Chairman Shahid Javed Barki and his team for their endeavors of preparing the best report that encompassed all facets of the CPEC and its beneQits for Pakistan. He added that CPEC project would take the country to new heights of economic development after fully functioning of Gawardar Port, as it would not only increase Pakistan’s revenues and exports but also enhance its foreign exchange reserves. RaQique Rajwana added that with the establishment of Special Economic Zones along sides the CPEC route, the world’s investors and major companies had now started making investments in Pakistan.

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ISLAMABAD

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inister for Foreign Affairs Khawaja Asif informed the National Assembly that the ministry was fully cognisant of the issues of overseas Pakistanis and determined to address all matters on priority basis. Replying to a calling attention notice in the National Assembly, the minister said that 2.7 million Pakistanis were living in Saudi Arabia while the number of Community Welfare OfQicers was

very low to address the issues of overseas Pakistanis in that country timely. He said that several Pakistani prisoners were detained in some jails of Saudi Arabia with different charges and the reasons behind large number of Pakistani imprisonment were visa expiry or overstay while there were few cases of criminal and civil offence.

He added there were proposals under consideration that the number of Community Welfare OfQicers be reasonably increased in countries like Saudi Arabia, where a large number of Pakistanis were living.

He said presently due to low capacity, there was an issue of dealing with a large number of overseas Pakistanis in Saudi Arabia and that it will be resolved after appointment of new Community Welfare officers. He, however, added that other ministries were responsible for appointment of these officers.

He said during his visit to Saudi Arabia, he had taken the issues with Saudi Foreign Minister. He said there were issues like increase in visa fees besides visitors’ visa fees and said that all these issues were being reviewed.

Anf reviews progress on counter-narcotics operations RAWALPINDI

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he Anti Narcotics Force organised the Force Commanders Conference at its Headquarters. The conference was chaired by Director General ANF Major General Musarrat Nawaz Malik and was attended

by Force Commanders of all ANF Regional Directorates and ANF senior staff officers. The ANF DG showed satisfaction over overall organisational performance of ANF. Progress on counter-narcotics operations, international commitments and drug abuse prevention and treatment programmes was comprehensively reviewed. During the conference, exceptionally stringent measures were recommended to trace and bust the dark nets involved in indoor and outdoor trafficking of Ecstasy Tablets and Amphetamine Type Stimulants (ATS). In addition, aspects related to enforcement, intelligence, assets investigation, prosecution, mass awareness, finance, administration and infrastructure development were discussed at length while futuristic goals were also set forth with special focus on undertaking fresh initiatives and capacity building plans.

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Trade incentives add $1.5b to exports revenue ISLAMABAD

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akistan earned an additional $1.5 billion from exports sector during the Qirst eight months of the current Qiscal year as the government trade incentives succeeded in encouraging traders to boost exports, a ministry of commerce statement has said.

“The current year’s export per-

formance has already contributed additional foreign exchange inQlows of around $1.5 billion during the Qirst eight months and is expected to reach the Qigure of additional $2.5 billion during 2017/18,” the statement added, with commerce ministry resuming the practice of releasing trade data.

Exports increased 16 percent in dollars terms and 22 percent in rupee terms in February over the same month a year earlier, which

has so far been the highest monthly growth in the current Qiscal year of 2017/18. Exports amounted to $1.901 billion in February as compared to $1.638 billion in the corresponding month a year earlier, the ministry’s data showed.

“This increase in economic activity in external sector reQlects an increase of 0.8 percent of GDP,” the commerce ministry’s statement said. “This means an additional around Rs280 billion of incomes for

trade, industry, agricultural sectors and the resultant additional employment.” Commerce ministry attributed the growth in exports sector to the export-friendly policies and incentives of the government and the renewed efforts towards seeking better market access by the ministry of commerce. “The positive trend in the international demand and exchange rate correction are also expected to help sustain this rising trend in the coming months,”

it added. In January 2017, government unveiled Prime Minister Trade Enhancement Initiative comprising a number of tax concessions and rebates for mainly textile sector, which accounts for more than 60 percent of total exports, to arrest decline in exports. It was expected to push exports by $2.5 billion. In December last year, rupee lost five percent of value against the US dollar that also improved competitiveness of export sector.

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Four-kanal land alloted for SCCI tower in city SARGODHA: The district administration has allotted four kanals of land for establishment of Sargodha Chamber of Commerce and Industry (SCCI) tower, and work on the project will start soon.

The land would be provided to the SCCI after payment in ten installments while offices and other projects would also be initiated here. Deputy Commissioner Liaqat Ali Chatha told this scribe that the SCCI was making efforts for facilitating business community and their concerns would be addressed on priority basis. He said that Rs17.5 million were being spent for carpeting Lahore Road to Model Town where the SCCI tower would be constructed. A soo and Shehbaz Sharif Park was also being constructed adjacent to the allocated land, he added.

RccI holds reception in honor of envoys, hcs & commercial counselors

Wednesday March 14, 2018

Chambers

IccI calls for constitution of body to resolve rent disputes of traders

RAWALPINDI

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he Rawalpindi Chamber of Commerce and Industry (RCCI) President Zahid Latif Khan hosted a dinner in honour of the ambassadors, high commissioners and commercial counselors here at a local hotel, Islamabad. More than 60 ambassadors of various countries including Germany, Afghanistan, Iran, Belarus, Poland, Argentine, Brazil, Spain, Somalia, and high commissioner of Srilanka, Bangladesh, deputy head of foreign missions and commercial counselors attended the dinner. Senior vice president Muhammad Nasir Mirza, Vice President Khalid Farooq Qazi, group leaders, Sohail Altaf, SM Naseem, former presidents, members of the executive

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committee and a large number of traders were also present in the event.

Addressing the ceremony, RCCI President Zahid Latif Khan in his welcome address thanked the dignities and traders for overwhelming gathering. In a brief speech he highlighted the key initiatives taken by RCCI to promote trade in the region and improving the networking among the traders’ community. An update on RCCI’s past, current and upcoming events was also given to the participants. He also highlighted Chamber’s performance and efforts to enhance Pakistan’s exports and strengthen the national economy, including arranging business conferences in UK, Qatar.

While referring to the empowerment of women, RCCI chief said that we recently successfully organized All Pakistan Women Chamber Presidents Conference where more than 17 Presidents of Women Chambers from all over Pakistan attended the two days summit.

ISLAMABAD

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delegation of Islamabad Chamber of Commerce and Industry led by President Sheikh Amir Waheed visited G-10/4, Islamabad to congratulate the newly elected President Zafar Gujar, General Secretary Usman Khan and other ofQice bearers of Traders Welfare Association, G-10/4, Islamabad.

Speaking on the occasion, Sheikh Amir Waheed said that government should constitute a reconciliation committee under the control of ICCI to resolve rent disputes of traders.

He said the rising incidents of forced evictions of traders from shops have created concerns in the trading community and called upon the government to arrange early promulgation of new rent control act in Islamabad to curb such unfortunate incidents. He said the absence of rent control law in Islamabad was the major cause of rising rent disputes and forced evictions of traders and emphasized that government should pay urgent attention to this serious issue. He said

that an amended bill of a balanced rent restriction law for Islamabad was lying pending in the National Assembly since long and urged that government should arrange its early passage into law from the parliament to resolve this serious issue once for all. He said incidents of forced evictions from shops were badly affecting the business activities and the only solution of curbing such incidents was to promulgate the new rent law as soon as possible. Muhammad Naveed, Senior

Vice President, Nisar Mirza Vice President ICCI, Zubair Ahmed Malik Chairman Founder Group, Khalid Chaudhry former SVP, ICCI said that in consultation with all stakeholders, an amended bill of rent control act for Islamabad was prepared that was presented long time ago in the National Assembly. However, no action has been taken so far to pass the said bill into law and delay in its enactment was creating frustrations in the trading community.

They stressed that government

oIccI opposes tax amnesty for offshore assets KARACHI

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he Overseas Investors’ Chamber of Commerce and Industry (OICCI) has expressed concern over a proposed tax amnesty scheme to bring back offshore investments, terming it as an injustice with compliant taxpayers.

The OICCI, representing major foreign companies in Pakistan recently shared its concerns, through a letter, with Special Assistant to Prime Minister on Revenue Haroon Akhtar, sources in the Federal Board of Revenue (FBR) said.

FBR sources who have seen the letter said OICCI’s members are perturbed over the proposed amnesty scheme to legitimise unofQicially acquired offshore assets of Pakistani citizens at a nominal single digit tax

rate. “Nearly all the amnesty schemes launched in the past 10 years have failed to yield the desired outcomes,” an ofQicial cited the letter as saying. The proposed amnesty scheme will be the fourth to be launched by the present government. Under the scheme, Pakistan’s expatriates or locals who have assets in foreign country would be able to declare their holdings against two percent tax payment if they agree to bring them back or four percent in case they opt for keeping them abroad.

Last week, Rana Muhammad Afzal, minister of state for Qinance and revenue said the proposed tax amnesty scheme would be rolling out on March 15 to encourage repatriation of billions of dollars of funds stashed abroad. Afzal, addressing an event, said the government wanted to increase foreign exchange re-

serves and to meet debt obligations.

“The government is focusing to increase foreign exchange reserves as an amount of $3 billion is scheduled to pay (till June-end) to IMF (International Monetary Fund),” he added.

Foreign investors said they are tax compliant and have been the largest taxpayers in the country, fulQilling all legitimate tax liabilities of their business activities. “Such proposed amnesty scheme will not bode well for the compliant taxpayers,” the ofQicials quoted the letter as saying. “Tax amnesty schemes send extremely wrong signals to compliant taxpayers in the corporate, trade and service and salary sectors.” OICCI comprises representatives of 192 foreign investors who account for 30 percent of the total collected taxes, roughly onesixth of GDP, invest $1.5 billion per annum and provide jobs to around one million people in Pakistan.

should get the bill passed from parliament without wasting further time to resolve this major once for all. Zafar Gujar President, Usman Khan General Secretary, TWA G10/4, Islamabad and Ch. Irfan Group Leader thanked ICCI delegation for congratulating them. They said the absence of rent law was the most serious of the traders of Islamabad and government should arrange passage of new rent law on top priority basis to provide a sense of security to the traders.

kccI to formally announce launch of ‘my karachi Expo’ arachi Chamber of Commerce and Industry (KCCI) will formally announce the launch of a three-day international trade exhibition titled ‘My Karachi: Oasis of Harmony’.The expo will start on April 20 at Karachi Expo Centre.

The KCCI hosts this international trade event every year since 2004 to promote soft image of Pakistan in the world, especially in the West, said a KCCI press release. Chairman, Businessmen Group and former president of Karachi Chamber of Commerce and Industry, Siraj Kassam Teli will highlight the main features of the expo at a press conference at the chamber.BMG Leaders, KCCI office-bearers, Managing Committee members will also be present on the occasion. –CB Report

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About 24 seizures worth Rs99.043m settled by Adjudication Multan MULTAN: The Collectorate of Customs Adjudication Multan has concluded 24 various seizure cases worth Rs99.043million during the month. Customs Adjudication Deputy Collector Saima Ayyaz has decided as many as 11 seizures framed by the Multan Customs Anti-Smuggling Organization (ASO) and Directorate of Customs Intelligence and Investigation in February. These cases were related to the evasion of customs duty to the tune of Rs2.8million.

Wednesday, March 14, 2018

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faisalabad ASo confiscates huge quantity of contraband items FAISALABAD nAEEm ShEIkh

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he Collectorate of Customs Anti Smuggling Organization (ASO) has seized contraband items worth Rs29,614,786 during the month of February 2018. According to the details, the ASO seized contraband items from different locations of Faisalabad city, including Chanab Nagar, Sargodha Road, Gattwala, Karkhana Bazar, Railway Colony and other areas of its jurisdiction.

The items were seized on the information of Collector Asif Mehmood Jah and under the supervision of Assistant Collector Shah Samad Hamadani according to Import and Export Control Act 1950 punishable under section 156(1)89(i) 90 of the Custom Act 1969. The ASO team comprising Superintendent Tanveer Raza Naqvi, Inspector Faizi Raza, Muhammad Tanveer, Sepoys Muhammad Khalid, Muhammad Naeem, Muhammad Ashraf, Liaqat Ali, and Afzal Hussain participated in the raids. The customs ofQicials conQiscated the items as the accused persons failed to produce documents regarding legal import of the items.

Later, the seizure report was submit-

ted to the adjudication department for further proceedings. As per the details in the seized items included ten vehicles under Section (U/S 157)

being used for smuggling transportation worth Rs 9800000 and four others non duty paid vehicle under section (U/S 16 NDP) worth Rs

33,00,000 foreign origin cloth 4040 kilograms worth Rs 2266000 tyres and tubes (110 numbers) worth Rs 542000 smuggled diesel 10,000 Lit-

ters worth Rs 600,000 electronic goods and various other contraband items worth Rs12017394 during February of Qiscal year 2018.

customs Quetta generates Rs446m more revenue than yesteryear QUETTA

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he Model Customs Collectorate Quetta earned Rs446million extra revenue under all the heads during the month of February FY17-18 against the same previous February FY16-17.

According to details given by the sources of Model Customs Collectorate (MCC) Quetta that, dur-

ing the month of February FY1718, the collectorate received Rs1739.574million of revenue under the head of all the duties and taxes while it earned Rs1293.136million of revenue under the same head during the same corresponding period.

Sources told CT that, during February FY17-18, the collectorate fetched Rs703.544million of Customs Duty (CD) while it earned Rs435.229million under the same head during the same previous period of FY16-17. It was added that the collectorate received Rs665.774million as

Sales Tax (ST) during February FY17-18 while it did Rs576.763million under the same head during the same correspon-

ding FY16-17. The sources informed the correspondent that, during February FY17-18, the collectorate generated Rs68.733mil-

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lion of Additional Sales Tax (AST) whereas the collectorate did Rs46.086million as AST during the same previous period. It was added that the MCC Quetta collected Rs275.905million of Income Tax (IT) during February FY17-18 while it did Rs210.827million under the same head during corresponding period. The sources said that, during February FY17-18, the collectorate got Rs25.619million of Federal Excise Duty (FED) while it received Rs24.231million under the same head during the same corresponding period.