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pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 304

Karachi, Tue March 1, 2016

ISLAMABAD

M FAIZAN

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ederal Board of Revenue (FBR) Chairman Nisar Muhammad Khan has called a meeting on March 17 at the FBR headquarters to discuss ways and means to expand tax net.

Chief commissioners and commissioners of Broadening of Tax Base (BTB), a wing of the FBR, will attend the meeting and

present their suggestions and recommendations to bring non-taxpayers into tax net. Different approaches will also be reviewed for trapping the traders those will not take benePits from recently announced tax amnesty scheme. The meeting has been called to discuss the strategy for achieving the target of enhancing tax base during the current Piscal year. Talking to Customs Today, a responsible ofPicial said that non-taxpayers will have to face the actions, adding that

Price Rs. 14.00

FBR has ethical and legal right to bring the noncompliance to table.

Meanwhile, Federal Board of Revenue (FBR) Chairman Nisar Mohammad Khan will arrive in Karachi on March 1 (Monday). During his visit to Karachi, he will inaugurate Large Taxpayers Unit-II. Sources of informed Customs Today that decision to establish Large Taxpayers Unit-II is taken to further enhance the performance of the FBR to resolve the issues of big industries.

Customs Preventive seizes 20kg heroin worth Rs 200 million

Multan Customs seizes three vehicles on charges of violating import policy

NHA attracts Rs 101 billion private sector investment

Multan Customs to launch operation against smugglers

Cuba keen enhance bilateral trade with Pakistan

The Pakistan Customs has confiscated 20 kilogram heroin worth Rs 200 m | See pAge 02 |

The Customs Intelligence has seized three vehicles in an action due to violation | See pAge 03 |

NHAhassuccessfullyattractedprivatesector investment and has awarded projects | See pAge 04 |

CustomsIntelligenceandASOwilllauncha jointoperationsagainstsmugglersinMultan | See pAge 12 |

Republic of Cuba Ambassador Gabriel Tiel Capote said that his country | See pAge 09 |

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FBR issues notices to 300 tax defaulters Tuesday, March 1, 2016

National

KARACHI: The Federal Board of Revenue (FBR) has issued notices to 300 tax defaulters while measures are being taken to expand tax net during the next four months of the current fiscal year. Additional Commissioner Regional Tax Office-I Tahir Awan informed Customs Today that the RTO has already sped up its efforts to collect more revenue to meet financial target set for the fiscal year 2015-16. He said that 300 notices were issued to tax defaulters. He said that taxes worth Rs 70 million are still pending against the defaulters. He said that all the defaulters are given one month time to clear their outstanding tax amount otherwise strict legal action will be taken against them.

customs preventive seizes 20kg heroin worth rs 200 million

pakistan, Afghanistan keen to resolve transit trade issues KARACHI

MuBeeN huSSAIN

KARACHI

SohAIL rAB khAN

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he Pakistan Customs has conPiscated 20 kilogram heroin worth Rs 200 million at the Karachi Airport.

Addressing a press conference at K-9, Civil Aviation Bungalows, Chief Collector-Enforcement (South) Muhammad Zahid Khokhar called it the biggest haul in the history of the country. Collector Customs Preventive Syed Muhammad Tariq Huda, Additional Collector Feroz Alam Junejo, Deputy Collector and other Customs ofPicials were also present on the occasion.

Khokhar said that the 20-Kg heroin seizure was an unprecedented cache of smuggled heroin consignments. He added that a British national Mehmood Imran had carried a bag containing smuggled heroin from Lahore to Heathrow Airport United Kingdom on October 29, 2015 and left it unattended at the airport.

“The UK Customs authorities, after checking the consignment, sent it to Karachi on February 25, 2016,” Khokhar added.

The Chief Collector further informed that the Customs authorities have already taken-up the said matter with the UK Customs authorities, adding that the Anti-Smuggling Organization (ASO) –Investigation will

he Pakistan and the Afghanistan governments seem keen to resolve different issue coming in the way of Afghan Transit Trade with mutual understanding and consensus.

According to the sources, Afghanistan government has requested the Pakistani authorities for eliminating the condition of guarantee and allowing the transit trade of the different items included in the negative list. The Afghanistan on the other hand has agreed to give users IDs of the WeBOC (Web Based One Customs) that will be essential for more transparent Afghan Transit Trade.

The government of Afghanistan will issue IDs for non commercial importers from the Afghan Ministry of Commerce and Industry.

Pakistan has already given a list of non commercial importers to the government of Afghanistan. The decision was taken during the meeting of Pakistan and Afghanistan recently, the source added. The session held between Pakistan and Afghanistan also discussed regarding the Afhan Transit Trade route.

also investigate the said case. Speaking on the occasion, Collector Customs Preventive S M Tariq Huda said that Pakistan Customs is determined to unearth the smuggling nexus in Pakistan adding that the Counter Narcotics efforts will continue at any cost. Collector Customs further informed the media that around

500metric tones of drugs are being smuggled across the world. Meanwhile, The Federal Board of Revenue (FBR) has directed the Pield formations/ Collectorates to certify the covering letters of the Pakistan Customs ofPicers, seeking encashment of leave for 365 days. “It has been noted that the Pield formations generally

forward requests/proposals of BS16 ofPicers to the board for grant of leave encashment for 365 days without going through the record/facts that the ofPicer concerned has also availed leave during the last year of service,” according to a letter issued

by Qasim Khan Khattak, Secretary Mgt. Customs-III.

report on gold smuggling scam to be published in a week T

KARACHI

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he authorities concerned of the Federal Board of Revenue (FBR) are reluctant to make public the most important report in connection with gold smuggling case, it is learnt.

Sources disclosed that the report regarding the mega gold scam has been prepared by the department concerned of the Pakistan Customs,

but it has yet to be made public as some inPluential persons are behind the scam and their names are also included in the report.

The sources on condition of anonymity informed Customs Today that the names of around 18 gold smugglers are included in the report which was prepared by the competent authorities of Pakistan Customs with through study.

Responding to a query, the sources conPirmed that the gold smuggling report has been pre-

pared and would be published in a week or so. It is pertinent to mention here that the gold smuggling case was surfaced last year in which it was unveiled that the exporters by using hundreds of fake Form-E were involved in exporting billions of worth gold to other countries through Air Freight Unit (AFU) and Port Muhammad Bin Qasim (Exports). It may also be mentioned here that the Customs departments including Directorate General of Internal Audit and Port Muhammad

Bin Qasim (Exports) while following the directives of FBR high-ups have started marathon investigation and in the light of threadbare investigation, the Customs authorities later, registered FIRs against some of the gold smugglers including Sani Impex, Makkah Enterprises and others, but nothing effective has yet to be done afterwards.

The sources further confirmed that some high-profile names are also included in the report on gold smuggling.

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FST disposes of 598 cases in January 2016 ISLAMABAD: The Federal Service Tribunal (FST) has disposed of 598 cases in January 2016 under the chairmanship of Justice (r) Syed Zahid Hussain.

According to details, 598 cases were heard and disposed of at five stations of the FST, including the Islamabad headquarters and regional offices in Karachi, Lahore, Peshawar and Quetta. the FST headquarters in Islamabad had decided 436 cases in January alone and remained on the top among all stations/offices in disposal of cases.

On the contrary, Quetta city office had decided only nine cases in January. Hence, it carried the lowest number of disposals among five stations of FST.

govt likely to extend deadline of tax amnesty scheme up to March 15

Tuesday March 1, 2016

National

Multan customs seizes three vehicles on charges of violating import policy

ISLAMABAD

M FAIZAN

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inistry of Finance is mulling over to extend the deadline of tax amnesty scheme following the demands of traders.

The deadline might be extended up to March 15, while the traders have asked the government to extend the date up to June 30 in order to ensure maximum benefit and promote tax culture. The traders’ team that is negotiating with FBR to settle the matter has asked for more time and hoped an effective response will be received from the traders regarding the scheme. The consequences of the scheme are not up to the mark therefore; the government is considering the demand of traders.

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customs foils bid to smuggle heroin at wagah border LAHOR

M IMrAN MehAr

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he Pakistan Railway Police, AntiNarcotics Force and Pakistan Customs recovered a huge quantity of heroin during checking of the train at Wagah border on Friday. According to sources of Customs Today, the Customs team recovered a huge quantity of heroin from the Indian bound goods train. The heroin worth Rs 250 million was technically hidden in pressure cylinders of goods coach. Meanwhile, the driver, guard and assistant diver have been taken into custody from the spot for further investigations. The guard is identified as Kamran, a resident of Lahore, assistant driver as Liaqat Ali and driver as Faisal Imran. The detained persons are shifted to unidentified location for further investigations. It is pertinent to mention here that this is a second attempt of smuggling within this week.

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MULTAN

IMrAN ALI

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he Customs Intelligence and Investigation has seized three vehicles in an action due to violation of import policy.

Sources told Customs Today that a team of Customs Intelligence and Investigation intercepted three vehicles, including two six-wheeler Sprinkle and one 10-wheeler Hino.

All the vehicles were in private usage. The owners converted Sprinkle lorry into vehicles after reshaping it. Customs have found that the use of these vehicles is restricted under the import of used machinery, plant and equipment.

There import were allowed only for relocation of complete projects in all industrial sectors except for few industries. Their spare parts are also importable after the permission of authority. Customs found that only authorized construction companies or other are allowed importing such machinery after the approval of competent authority and it cannot be transferrable for next years. According to law, construction companies, duly registered with Pakistan Engineering Council, mining, oil and gas and petroleum sector companies are allowed to import second hand plant, machinery and equipment actually required for their projects in Pakistan. But they are allowed to import such machinery subject to prior shipment certi-

Pication by one of the prescribed pre-shipment inspection companies and they are not older than ten years. After the interpretation of the import order policy Customs have decided to seized three vehicles on the violation from importers. One six wheeler GD was also established incorrect during the veriPication of the customs teams.

Customs allowed commercial importers to import plants, machinery and equipment excluding special-

According to law, construction companies, duly registered with pakistan engineering council, mining, oil and gas and petroleum sector companies are allowed to import second hand plant, machinery and equipment actually required for their projects in pakistan

FBr to probe misuse of zero-rated sales tax facility KARACHI

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he Federal Board of Revenue (FRB) has decided to start inquiry into misuse of zero-rated sales tax facility on electricity consumption by two textile mills and one chemical company and directed to withdraw the zero-rated sales tax facility from them.

Sources told Customs Today

that the FBR has directed chief commissioner of Regional Tax Office to complete the inquiry as soon as possible and submit his report. The companies which are involved in misuse of zero-rated sales tax facility include M/s Ameema Textile, M/s Shamin Knitwear and M/s Naeem Ghaffar Chemicals.

Sources said that FBR instructed concerned authorities to make sure recovery of pending dues of these companies. FBR also wrote a

letter to K-Electric advising them to withdraw the tax facility on the connection of these companies and levy normal tax on them.

It is pertinent to mention here, previously, FBR has also taken same action against three different companies in November and July 2015.

Meanwhile, The Federal Board of Revenue (FBR) has directed the Pield formations/ Collectorates to certify the covering letters of the Pakistan Customs ofPicers, seeking encashment of leave for 365 days.

ized vehicle mounted machinery or transport equipment on behalf of construction companies which are registered with Pakistan Engineering Council. Customs have decided to seize all three vehicles after investigation due to their usage in the other Pields from its dePined sectors and formed contravention against three seized vehicles on the import order policy of the vehicles. The worth of the seized vehicle were almost Rs 12 million.

AphMA urges FBr to make tax system easier ll Pakistan Hardware Merchants Association (APHMA) Chairman Sheikh Abdul Mannan has urged the Federal Board of Revenue (FBR) to make taxation system easier and remove complications in it. He added that by easing the taxation system, tax evasion amounting to billions of rupees can be controlled. Shiekh Abdul Manan said that important measures should be taken to stabilize the national economy.

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OGDCL spuds 8 new wells in six months Tuesday, March 1, 2016

Business

ISLAMABAD: The state-owned exploration and production company-Oil and Gas Development Company Limited (OGDCL) is making tangible efforts to meet the country’s growing energy needs with spudding eight new wells during the half year ended December 31, 2015. According to an official source, these wells included two exploratory or appraisal wells and six development spuded during the same year.

Elaborating, the source added company’s exploratory efforts yielded two new oil and gas discoveries namely Chak Naurang South-1 in district Chakwal and Aradin-1 in district Khairpur in Sindh.

pSX gains 75pts closing at 31369 points KARACHI

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he Pakistan Stock Exchange (PSX) witnessed the bullish day on Monday as KSE-100 index gained 75.43 points to reach 31369.51 points at closing.

The stocks recorded the highest trading level of 31434.61 points and lowest level of 31219.14 points, with the volume of 71,606,110 shares, having about Rs 5,121,034,916 value. As many as 311 companies were active; of which 118 advanced, 173 declined and 20remained unchanged.

Cement was the top traded sector

Meat export boosting with 30% ratio LAHORE

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he meat export in Pakistan is growing with a ratio of 30 per cent every year which can be further grow up by proper processing. This was stated by Head of Meat and Nutrition of University of Veterinary and Animal Sciences (UVAS) Dr Muhammad Hayat Jaspal in an exclusive talk with APP here Sunday.

He said despite top beef exporting nation in the neighbourhood and of the global meat market as competitors so far Pakistan had held its ground successfully in the regional market of Middle East.

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with 20,735,100 volume, while miscellaneous remained second with 15,311,700 volume.

The three top traded companies

were Pace (Pak) Limited with a volume of 15,070,000 and price per share of 6.19 (0.07), Power Cement Ltd with a volume 11,106,000 of

price per share of 9.69 (0.94), and Jah. Sidd. Co. with a volume 8,017,000 of price per share of 20.52 (0.12).

The top three gainers were Unilever Foods with price per share 5565 (265), Philip Morris Pak with price per share of 1825 (51.98) and Ferozsons (Lab)XD price per share of 851 (37.42).

The top three losers were Nestle Pak with price per share of 6850 (-37.5), Murree Brewery with price per share of 775 (28.33) and Shezan Inter per share of 459 (-23.84).

However, the upward rally continued till midday as the Pakistan Stock Exchange (PSX) gained 72.31 points to reach 31366.39 points level till midday on Monday.

NhA attracts rs 101 billion private sector investment ISLAMABAD

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he National Highway Authority (NHA) has successfully attracted private sector investment and has awarded four projects worth over Rs 101 billion, which is more than average annual Foreign Direct Investment (FDI) in the country. NHA Chairman Shahid Ashraf Tarar said this has been ensured through dedicated efforts of NHA during the last one year.

In an interview with APP on Sunday, he said besides other benePits, the projected revenue earnings from these four projects is over Rs 391 billion. The NHA Chairman said the present government intends to develop road infrastructure in commensurate with requirements of the country as well as the region.

It is undoubtedly the most critical activity at present moment and the country needs to be equipped with the upgraded road infrastructure during the next Pive to seven years, he added. “The government wants to double the road density till 2025

and this mammoth development goal is only possible with the support of private sector, whereas Piscal budget allocations alone would sufPice to meet 50 per cent of the set targeted demands”, he said.

The rest has to come from the off-budget Pinancing through Public-Private-Partnership (PPP) projects, he added. The Chairman said that public private partnership is eventually becoming an essential component of NHA development strategy. The objectives set by NHA for PPP, he said, include the development, off-budget Pinancing.

remittances to cross $20 billion mark ISLAMABAD

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akistan Overseas Employment Promoters Association (POEPA) on Sunday said workers remittances can cross the mark of dollar 20 billion in the ongoing fiscal year.

“We are highly satisfied with the government and the initiatives of State Bank of Pakistan and other stakeholders which has led to continued growth in workers remittances despite global downturn and oil crisis”, said Chairman of Poepa Chaudhary Muhammad Afzal.

In a statement issued here today, he said Pakistan is gaining ground in the global remittance market for which credit also goes to the unprecedented cooperation by embassies of friendly countries, especially that of Saudi Arabia.

Chaudhary Muhammad Afzal said the government should recognize the services of all the actors playing part in improving remittances while banks should further improve their services to offer better services to overseas Pakistanis.

He lauded the steps taken to enhance flow of remittances through legal channels including preparation and implementation of national strategy on remittances, advisory role for the financial sector, efficient payment highways, etc.

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Mobile imports up by 10.39% to $433.276m in July-Jan ISLAMABAD

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obile phone imports in the country have reached US $ 433.276 million in current Piscal year (July-January), registering 10.39 percent increase as compared to same period last year.

The imports of mobile phone were $392.493 million in same period last year, statistics of Pakistan

Bureau of Statistics (PBS) showed on Sunday. The data said overall telecom imports saw a decline of 5.5 percent during July-January 201516 as compared to same period last year. The total telecom imports were recorded at $800.127 million during the period as compared to $846.713 million previous year.

Other telecom apparatus import also witnessed a signiPicant decline of 19.23 percent during this period as it stood at $366.851 million dur-

ing July-January (2015-16) against $454.220 million during same period of last year. Meanwhile, telecom experts said in next two years, smartphones are expected to cross 55 per cent of mobile phone imports. Smartphones adoption in Pakistan is expected to grow due to expanding 3G and 4G networks (currently 3G services are available in more than 200 cities and towns) and more affordable smartphones being available in the market.

Moreover, according to Grappetite Research, 77 per cent of smartphone users are between ages of 21-30 years which is the most adaptive segment for use of smartphones. Cellular mobile operators have also collaborated with smartphone manufacturers to promote smartphone usage in Pakistan and companies have also started developing mobile apps and mobile websites keeping in view the fast adoption of smartphones in Pakistan,

which will increase the smartphone usage in future. With the rapid expansion of mobile broadband networks and adoption of smartphones in the society, the telecom import burden has gradually increased over the last Pive years.

In the Fiscal Year 2014-15, Pakistan imported $1.2 billion worth of telecom equipment, in which a record import of $629.9 million was on account of cellular mobile handsets imports.

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ISLAMABAD M FAIZAN www.customsbulletin.com

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dvisor to Prime Minister on Revenue Haroon Akhtar Khan has said that Voluntarily Tax Compliance Scheme (VTCS) is not meant for converting black money into white. He rejected all the allegations levelled against the scheme by the opposition.

During an exclusive interview with Customs Today, he said that the FBR imposed 0.6 percent withholding tax on bank transactions for non-filers. He said that the government decided to take this step for documentation of the national economy. He clarified this step is meant to collect advance tax from non-filers and to make them as tax-filers. He said when government imposed 0.6 percent withholding tax on banking transactions traders started agitating, after this traders reached agreement with government and after that government decreased the withholding tax from 0.6 percent to 0.3 percent.

Haroon Akhtar said that we asked traders to inform us about their issues so we should sort out that issues after taking them into confidence. Traders apprise us from their issues.

They complained that tax ratio is very high so government should announce decrease in sales tax. They also proposed to exempt them from audit. Haroon Akhtar said that we promised

traders bodies to sort out their problems on priority basis. He said that black money is called that amount which generated through selling of narcotics, corruption and smuggling, extortion. He clarified that main purpose to introduce Voluntarily Tax Compliance Scheme (VTCS) is to make our economy documentary.

He said that we asked traders community that if they will under tax net for a period of three years they will be exempted from any audit and nobody will ask them about their source of income. He said we inroduced a simple tax form and we accepted all the demands of traders. He said that we introduced tax submission form in Urdu langauge. He said we are promoting Voluntarily Tax Compliance Scheme on all forums because Prime Minsiter Nawaz Sharif and Federal Finance Minister Ishaq Dar are trader-friendly personalities. He said he himself belong to a businss family and can very well understand the issues of business community. He said we are taking every possible measure to convince traders to avail benefits of VTCS because it is most beneficial scheme for non-filers to become filers He said we publish advertisements in our daily newspapers and nominated focal persons to hold meeting with traders community and apprise them about the benefits of VTCS. He said he himself visited various cities of Punjab to get in touch with traders.

Haroon Akhta said that we are quite opti-

mistic that traders community will submit their tax returns till February 29. He said after expiry of this date will compile the whole data of this scheme. He said that we introduced this scheme on demand of traders community.

Advisor to Prime Minister Haroon Akhtar urged to all traders to become tax filers through VTCS. He said those who failed to take benefits of this scheme have to face tough situation because they will have to disclose the source of their income.

t we id tha sort a s r a t n Akh ies to haroo traders bod riority on p sed promi ir problems k money is c e out th aid that bla which s e h unt basis. d that amo selling of h calle hroug on and t d e t i a gener ics, corrupt ion t o c ort nar g, ext n i l g g smu

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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

halal food market

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akistan’s share is only around $28 million or just 0.5 percent of the total global halal food trade. A quarter of the world population is Muslim and Pakistan ranks 18th in the index of the halal meat production with a capacity to produce 650,402 tons chicken meat, 73,000 tons buffalo meat, 70,600 tons cattle meat, 270,000 tons goat meat and 154,000 tons sheep meat per year. According to an official of the Federation of Pakistan Chambers of Commerce and Industry, more than 80 percent of the world halal trade is dominated by non-Muslim countries. The National Assembly has recently passed a bill to set up the Pakistan Halal Authority to ensure supply of halal food to the people.

Pakistanis use 100 percent halal food items and the country has the potential to enter the global halal food industry but its share in the $2.3 trillion halal food market is negligible. The authority will be tasked to set halal food standards to fully utilize the country’s potentials.

The awareness of halal products had increased among Muslim nations with advent of Internet, mobile phone and other technological advances. Halal products are a symbol of healthy, wholesome and hygienic food and has growing popularity even in the non-Muslim individuals. According to a report of the Global Islamic Economy, the worldwide spending on halal food and lifestyle products can rise 10.8 percent per year until 2019 and will increase the international halal food trade to $3.7 trillion. Despite the low per capita income, Pakistan with a population of around 180 million is itself one of the largest market of halal food and products from nonMuslim countries, such as Australia and China are easily available in its super stores. At present, Canada, Indonesia, India, Malaysia, Philippines, Thailand, New Zealand and US are the leading halal food suppliers in the world while Australia, Brazil and France are the biggest halal chicken exporters in the Middle East.

The problem with the Pakistani policymakers is that they forget the local food requirements in their quest to enhance exports. Pakistanis also deserve halal food at competitive rates and they should not be denied of this right.

However, specific cattle farms and food processing zones can be established only for export purpose.

Industrial units should be documented A

LAHORE

Dr AFtAB AFZAL

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ccording to newspaper reports, the government has no updated record of industrial units in the country, including its largest province Punjab, giving a severe blow to the efforts to document the national economy. No updated or ofPicial industrial directory has been prepared and the available record is void of any reasonable data which could help boost industrial activities in the country. Reports suggest that red tape and mismanagement reign supreme in the ofPicial cadre with no interest in updating the record of the existing, closedor sick industrial

units. The developed nations keep record of everything possible to devise not only industrial policies but also to give impetus to planning and development efforts. In this age of information technology, survey of the industrial units and maintenance of record is not an uphill task as it was in a couple of decades ago.

Unavailability of updated record leads to several complications as the industrial units making good business cannot be persuaded for taxes according to the volume of their production while the closed or loss-making units are sent the tax notices in line with their previous business details.

The cottage industry of any country is considered the backbone of economy and even China

and Japan started their journey to industrial development from home industries and have now become second and the third largest economies of the world.

The small industrial units are provided every facility from Pinance to expertise in developed nations, but the departments in the country which are responsible for assisting the small industry have failed to give good performance despite heavy government budget on their disposal. However, at least management of record is the basic requirement in the modern economy and the departments responsible for the job are reeling under ofPicial rigmarole. The record of the business type, location, closed and sick units as well as unregistered units is either in-

complete or missing.

Only the units having stakes in the government funding are registered with the departments concerned and the un-documentation of the units is one of the impediments in the development of the national economy.

Reports suggest that hundreds of new industrial units of pharmaceuticals, food processing, engineering, textile, garments, carpet, plastics, electronics, chemicals, paints, steel and auto parts are being set up in Lahore, Faisalabad, Gujranwala, Sialkot, Hyderabad and Peshawar and Karachi and their documentation in the ofPicial record is important.

There are industrial units earing millions of rupees, but avoid to come into the tax net.

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Earnings from non-oil exports slide to $1.6b WASHINGTON: Following the inability of Federal Government to revive incentives for non-oil exporters, proceeds from the sector has continued to witness a southward trend, as the nation’s earnings hit $1.6 billion from $3 billion recorded in 2013. According to stakeholders in the sector, earnings from non-oil export can easily cross $5 billion this year and bring some relief to tackle the foreign exchange crisis prevailing in the economy, if suspended incentives are revived and other challenges addressed.

Executive Secretary of the Organised Private Sector Exporters Association (OPEXA), Jaiyeola Olarewaju in a chat with The Guardian, noted that exporters have in the last two years, been sitting on a backlog of over N100 billion worth of unutilized export certificates issued under the seal of the Ministry of Finance, urging government to honour its financial commitments in regards to extant law.

Any new interpretation of Article 158 to be disastrous: kccI he leadership of Businessmen Group and office bearers of the Karachi Chamber of Commerce and Industry (KCCI) said that the Article 158 is very clear and any new interpretation to this would be disastrous for the federation as this three liner article clearly states that it is the prerogative of gas usage of the province where it is being explored.

In a joint statement, BMG Chairman and KCCI former president Siraj Kassam Teli, Vice Chairmen Tahir Khaliq, Zubair Motiwala, Haroon Farooki and Anjum Nisar, KCCI President Younus

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Muhammad Bashir, KCCI Senior Vice President Zia Ahmed Khan and Vice President Muhammad Naeem Sharif pointed that Sindh, by grace of Allah, contributes 73 percent of the country’s total gas and it is being subjected to the quota of 29 percent which also includes gas for Balochistan, supplies to Power Houses at Jamshoro and to KElectric for power generation while the industry of Sindh is left with a meager amount of gas. They commented that Karachi, which contributes more than 65 percent in the national revenue, more than 30 percent in terms of exports, and despite being a commercial hub, is subjected to this kind of treatment. “Karachi, with all its law & order and security problems, continues to contribute mega portion in the national economy and the industries of Karachi suffer due to discriminatory attitude by the federal government”, they said, adding that with this kind of share in the national economy, the federal government should have come forward and amended the quota for Sindh as per monetary contribution in the national exchequer.—CB Report

Tuesday March 1, 2016

Chambers

cuba keen to enhance bilateral trade with pakistan R

ISLAMABAD

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epublic of Cuba Ambassador Gabriel Tiel Capote said that his country was keen to enhance trade relations with Pakistan as both countries have good potential to promote mutual cooperation in many areas.

He said Pakistan could export textiles, fabrics, rice, surgical instruments, leather and sports goods to Cuba while Cuba could export its biotechnological and pharmaceutical products to Pakistan. He expressed these views during his Pirst interaction with business community at Islamabad Chamber of Commerce and Industry He said both countries could achieve mutually benePicial outcomes by enhancing cooperation in health, education, culture and sports Pields as well. He said Cuba had opened Mariel Port in 2014 situated in its North Western Region and created an Economic Development Zone around this port to attract foreign companies in the Pields of electronics, chemicals, computers, biotechnology and pharmacy. He

said Pakistani investors should explore investment opportunities in the said Economic Zone in Cuba.

The Ambassador said that Cuba organized Havana International Fair every year which would hold in November this year and it was a good opportunity for Pakistani businessmen to participate in the fair to showcase their products as well as identify opportunities for further expanding bilateral trade. He suggested that ICCI should form a dele-

gation of speciPic sectors for Cuba to explore business matchmakings and assured that his Embassy would facilitate in connecting its members with right counterparts in Cuba.

In his welcome address, Islamabad Chamber of Commerce and Industry (ICCI) President Atif Ikram Sheikh said that bilateral trade between Pakistan and Cuba was just $5.6 million in 2015 which was not encouraging by any standard. He said both countries should facilitate

govt lauded for zero-rating tax regime

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KARACHI

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epresenting the textile industrialists, All Pakistan Textile Mills Association (Aptma) Chairman Tariq Saud has lauded the government’s decision to reintroduce zero-rating tax regime for the export-oriented textile industry.

Tariq Saud, in a statement, especially thanked to Prime Minister Nawaz Sharif, Finance Minister Ishaq Dar and Chief Minister Shahbaz Sharif for taking this important decision. He further appreciated the approval for release of Rs 5 million refunds to claimants, for which refund payment orders have already been issued and checks are awaited.

He said these initiatives would greatly help manage liquidity issues.

However, he added that the textile industry was currently facing seri-

ous viability issues that are needed to be addressed through implementation of the textile industry package, which contains implementation of announcement of reducing electricity tariff by Rs 3/KWh through slashing the surcharges levied on the base tariff to bring tariff for industry at Rs 9/KWH that is at par with the region.

In order to save the export-oriented textile industry of the country, imposition of GIDC should be taken away from the industry completely, he said, adding that the textile industry has also demanded provision of DLTL at 5% against the export of yarns, fabrics, made-ups and garments to compensate against incidentals of carousel types of levies, surcharges and taxes. “Position of regulatory duty on the dumped/subsidised import of synthetic yarns and fabrics entering to Pakistani commerce meant for domestic consump-

tion,” he added. Tariq Saud said an immediate intervention is required to check the surge in the import of synthetic yarn and fabric in domestic market, adding that the government should immediately impose regulatory duty on synthetic yarns and fabrics made of polyester, viscose and acrylic to secure the right to domestic industry on domestic commerce.

Meanwhile, The business community of Pakistan has appreciated the government’s decision of lifting trade sanctions against Iran after its nuclear deal with world powers. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Abdul Rauf Alam lauded the prudent decision of the government, saying it will positively enhance the bilateral economic and trade relations with Iran. He appreciated the Finance Minister, Ishaq Dar and anticipated that all economic projects with Iran will be revived.

frequent exchange of trade delegations and focus on promoting connectivity between their private sectors to identify new avenues of mutual collaboration.

He said many Pakistani products including food and others could Pind good market in Cuba while Pakistan could also benePit from Cuban experience, especially in the Pields of medical science and healthcare. He said for improving bilateral trade and economic relations,

uS economy grows surprise 1% in Q4 he US economy’s slowdown in the last quarter of 2015 wasn’t quite as bad as thought. The gross domestic product, the broadest measure of economic health, grew at an annual rate of 1 percent in the fourth quarter, the Commerce Department said yesterday.

That’s an improvement from the first estimate of 0.7 percent, though just half the 2 percent growth posted in the third quarter. The revision was made because the downturn in business stockpiling was less severe than the government’s first estimate. That helped offset slightly weaker consumer spending. Despite global weakness and financial market turbulence, economists still believe the economy is poised to accelerate this quarter. —CB Report

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China’s crude oil stockpile down 3.65% Tuesday March 1, 2016

World

BEIJING: China’s commercial crude oil stocks edged down 3.65 percent in January from December, according to new analysis by Xinhua News Agency. Last month, China’s imports of crude oil stood at 26.59 million tonnes, down 19.28 percent from December, the data showed on Thursday.

Gasoline stocks increased 1.38 percent as economic headwinds and higher fuel prices combined to constrain consumption. Diesel stocks rose 6.74 percent as demand weakened before the Lunar New Year holidays, according to the report. Stocks of kerosene gained 2.46 percent by the end of January.

China set a floor for retail fuel pricing in mid-January, aiming to buffer the negative effects of violent fluctuations in international oil prices.

Saudi authorities arrest 953 drug smugglers RIYADH

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ecurity ofPicials have stepped up their crackdown on drug trafPicking syndicates, busting several gangs and arresting 953 smugglers including 695 foreigners during the last four months. The foreigners involved in rampant drug smuggling were from 35 different countries,” said Maj. Gen. Mansour Al-Turki, spokesman of the Ministry of Interior.

Addressing a press conference at the Security Forces Club in Riyadh, Al-Turki expressed concern over the high incidence of drug-related crimes, prompting the authorities to intensify their crackdown. The Saudi security forces fought with trafPickers and opened Pire in most of the cases, which resulted in Pierce resistance from trafPickers killing some 28 security personnel,” he

canada police seize meth worth over $14,500 indsor Police arrested two people from Windsor with intent to smuggle more than $14,500 worth of methamphetamine.

Police seized a total of 72.6 grams of methamphetamine after responding to a break and enter call at a motel in the 3600 block of Sandwich Street.

The caller said a woman was using a window to get into a room.

Officers found a man and a woman inside that room, where they saw several syringes, a digital scale, a glass pipe and a baggie containing 7 grams of methamphetamine.

After getting a warrant to search the room police seized another 65.6 grams of methamphetamine and packing materials. They were able to link the room another man.

A 29-year old man from Windsor is charged with trafficking and breach of probation.—CB Report

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said. According to the gathered data, the police succeeded in conPiscating 26 million amphetamine pills and more than 16 tons of hashish besides SR26 million in cash during the last four months, noted the spokesman. Al-Turki said that all arrested people have been referred to the general investigation and persecution for trail.

Yemen and Syria rank high on the list of countries that send the most shipments of drugs and narcotics to the Gulf countries including Saudi Arabia,” he said.

The seizure list of contrabands and arms also include 46 million pills prohibited for use without medical prescriptions, 402kg of cocaine, 339 pieces of weapons including machine guns, 258 pistols, 45 guns along with 8,497 rounds of ammunitions.

Yemen has the ugly distinction to dump intoxicating hashish into the Kingdom, while most of the amphetamines are trafPicked via Syria,” Al-Turki said.

cocaine worth £200k hidden in chocolate seized at gatwick LONDON

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man and woman have been charged with attempting to import cocaine into the UK hidden inside tins of powdered chocolate, said a National Crime Agency (NCA) spokesman.

Aaron Cope, 31, and Joanne DangerPield, 40, both from Lea Hall, Birmingham, were arrested at Gatwick Airport’s South Terminal on January 28, after Border Force ofPicers seized about Pive kilos of the class A drug hidden inside tin cans in checked-in luggage.

The pair were interviewed by ofPicers from the NCA and bailed pending further enquiries.

They were re-arrested by the NCA on Tuesday February 23 and charged with importing a class A drug. Both were due to appear be-

hong kong police seize hk$750,000 worth of drugs

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our suspected drug trafPickers were arrested and more than 4.5kg of illegal drugs with an estimated street value of HK$750,000 conPiscated in four separate cases across the city on Friday night. The four Hongkongers, aged between 28 and 38, were picked up in Mong Kok, Kwai Chung, Sha Tin and Tseung Kwan O over a period of three hours. The drugs seized were crystal meth, also known as Ice, and ketamine. The Pirst suspect – a 38-year-old man –

was nabbed at about 7.45pm on Friday when ofPicers intercepted him on Portland Street, Mong Kok and found 500 grams of what appeared to be Ice on him. At about 9.15pm, anti-triad ofPicers from the Eastern police district intercepted a 32-year-old man in a Kwai Fuk Road car park in Kwai Chung as he got out of his vehicle. Police found 3.5kg of what was suspected to be ketamine on him and in his car. The haul had an estimated street value of HK$480,000.—CB Report

fore Birmingham magistrates today (Wednesday February 24). Mark Rutterford, from the NCA’s Gatwick border investigation team, said: “The drugs seized here would have had a wholesale value of around £200,000 but if cut, adulterated and sold on the streets of the UK they are likely to have been worth far more.

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I’ve no doubt that is where this stash would have ended up. Meanwhile, Eight men have been arrested after police seized more than 130,000 suspected illegal cigarettes. HM Revenue and Customs (HMRC) ofPicers seized the goods during a series of raids in Strangeways , Cheetham Hill and Bury here the other day.

two more customs officers in the net ribery sleuths yesterday arrested two more senior Customs ofPicers involved in accepting a bribe of Rs. 125 million from a foreign company on October 15 last year. According to a Commission to Investigate the Allegations of Bribery or Corruption spokesman, these two senior Customs ofPicials were arrested last morning. Three senior ofPicers of Sri Lanka Customs were arrested on October 15 by the Customs sleuths while accepting a bribe of Rs. 125 million from a foreign company at a location in Colombo. According to Bribery Commission ofPicials, these Customs ofPicers had informed this

foreign company that a post audit had found that a payment of Rs. 1,500 million was required for the release of a consignment of spare parts, to be used by the Sri Lanka Transport Board (SLTB). When the company ofPicials informed Customs ofPicials that they are not legally bound to make a such payment, these ofPicials have agreed to waive off the payment, expecting a gratiPication of Rs. 150 million. The company ofPicials have negotiated with Customs ofPicials to reduce the bribe to Rs. 125 million after making the complaint to the Commission to Investigate Allegations of Bribery or Corruption.—CB Report

uS customs seizes meth, marijuana worth $200k

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S Customs and Border Protection officers at the Del Rio International Bridge recently discovered more $200,000 worth of suspected narcotics hidden in a vehicle coming from Mexico.CBP officers discovered a non-

factory compartment on the underside of the engine.

“We are committed to keeping our communities secure,” said Port Director Alberto D. Perez, Del Rio Port of Entry. “This seizure is yet another example of the great work and dedication of our frontline CBP officers.”

On Feb. 18, CBP officers, working at the Del Rio Port of Entry, en-

countered a 1998 Jeep Cherokee as it arrived in the United States from Ciudad Acuña, Coahuila, Mexico. Upon inspection, CBP officers discovered a non-factory compartment on the underside of the engine. Officers seized 10 pounds of suspected methamphetamine, and a half-pound of marijuana, with a combined value of $203,810.

The driver, a 45-year-old resident of Ciudad Acuña, Coahuila, Mexico, was turned over to Homeland Security Investigations for federal prosecution.

CBP’s Del Rio Port of Entry is part of the Joint Task Force-West South Texas Corridor, which leverages federal, state and local resources to combat transnational criminal organizations.

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Banks allowed to do business with Iran TEHRAN: Pakistani banks have been allowed to restore normal financial relations with Iran in the wake of lifting of ban on Tehran by the United Nations Security Council (UNSC). The State Bank of Pakistan (SBP) issued on Thursday instructions to all banks and financial institutions in this regard.

“In line with the federal government’s decision to implement the UNSC Resolution dated July 20, 2015 regarding lifting of sanctions against Iran, the State Bank of Pakistan has communicated to banks/FIs that previous sanctions on Iran have been removed and normal business activities can be commenced within the scope of the Resolution,” said the SBP.

global smartphone shipments increase 12% lobal smartphone shipments increased by 12 per cent to hit 1.4 billion units in 2015, although there are signs that the future may not be so rosy, figures from Strategy Analytics show.

Growth in the lucrative fourth quarter holiday sales period was “the smartphone industry’s slowest of all time”, increasing by 6 per cent to 404.5 million units. The fact that the previously fast-growing Chinese market is reaching maturity, and consumer worries about the world economy, were cited.

Samsung ended the year strongly, with its 9 per cent growth to 81.3 million units seeing it outperform the market. Coupled with a lacklustre three months for Apple’s iPhone, this enabled the South Korean vendor to maintain its hold on the market top spot. Neil Mawston, executive director at Strategy Analytics, said: “Apple’s iPhone growth is peaking. Apple will

Ports & Shipping

port Metro Vancouver numbers point to steady trade

govt moves to review ports concession agreement aments inadequate revenue from maritime sector IN its shopping for a balm to heal the ailing economy, the Federal Government is to review ports’ concession agreement entered into with private seaport terminal operators in 2006.

Some of the concession agreements, designed to lift the operations of Nigerian ports, will elapse before the end of this year. Already, the management of Nigerian Ports Authority (NPA) has concluded plans to forward a memo to the government on the need for the review.

Speaking at an interactive session with maritime stakeholders in Lagos yesterday, the Minister of Transport, Chibuike Amaechi, lamented that the Federal Government was not getting adequate revenue from the maritime sector despite its huge potential. “What the maritime sector contributes is too insignificant compared to its potential.

Why? We need to find out why?” he said. Though the minister did not disclose how much the government is earning currently, he said the Ministry of Transport would engage an audit firm charged with the responsibility of looking at the concession agreements, adding: “The port is nearly the same after the concession. I don’t think we are making the kind of money we should be making.”—CB Report

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have to expand into new markets like India or Nigeria if it wants to reignite iPhone growth in 2016.”

Huawei maintained its third position, increasing its market share by two percentage points in the meantime, although its volume is still less than half that of number-two placed Apple. For the full year, the company “joined an elite club” by shipping more than 100 million units, although its growth is starting to slow as vendors such as Xiaomi began to fight back in Asia.

Linda Sui, Director of Strategy Analytics, noted that the combination of Lenovo and Motorola “has so far not been a success and the two firms’ combined smartphone shipments today are lower than when they first joined together in 2014”. Xiaomi held on to fifth spot.—CB Report

Tuesday March 1, 2016

OTTAWA

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ew trade statistics from Vancouver’s busy PaciPic port show the continued resilience and diversity of Canada’s economy, despite stagnant global growth and a collapse in commodity prices that has hit some of the country’s biggest Pirms, the port’s chief executive ofPicer says.

Port Metro Vancouver released year-end trade numbers for 2015 late last week. And although the re-

sults are slightly mixed, port CEO Robin Silvester said that as some sectors have sagged because of global factors, others have risen in their place. “It’s quite a pleasing year when you look at the softening of the global economy,” Mr. Silvester said. Overall trade volume was still relatively Plat, at 138 million tonnes of cargo, and that is something Mr. Silvester said he expects to continue into the future, with the next few years seeing something of a “holding pattern” in trade volumes, rather than strong growth – which might only come between three to Pive years out, he added. “If we project forward, what we’re expecting this year is more of

the same,” he said. There were some rather obvious indications of decline across Canada’s energy sector, which has suffered through a disastrous collapse in the price of oil, and across B.C.’s traditional natural resource exporters. Break bulk foreign metal imports dropped steeply by 25 per cent as Alberta’s energy sector stopped investing and expanding, while break bulk forest product exports from B.C. fell 5 per cent from the previous year.

Metallurgical, or steel-making, coal shipments dropped 21 per cent – with shipments to China alone falling a staggering 29 per cent, as the world’s second-largest economy continued to slow down.

Adani ports considering acquisitions in India, abroad

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MUMBAI

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dani Ports and Special Economic Zone Ltd, India’s biggest private port operator, is looking to complete its “string of pearls” ports strategy by plugging gaps that remain in a few coastal states. In addition, the company is also eyeing overseas acquisitions.

The company, part of billionaire Gautam Adani-led infrastructure conglomerate Adani Group, is ac-

tively looking at acquisitions, two company executives said, adding that chief executive ofPicer Karan Adani is leading the drive. Karan is Gautam Adani’s son and took charge of Adani Ports on 1 January.

In India, the company is looking to expand its presence in Maharashtra and West Bengal. In overseas markets, the company is scouting for port opportunities in Sri Lanka, Bangladesh, the US and Europe, apart from the ports planned in Australia.

“The overall objective is to make the group a trans-shipment port com-

pany,” one of the executives cited above said on condition of anonymity.

Adani Ports has plans to turn India’s biggest commercial port at Mundra in Gujarat into a regional trans-shipment hub by partnering with Terminal Investment Ltd SA, a container terminal operating company majority-owned by Geneva-based Mediterranean Shipping Co. SA, the world’s second biggest container shipping line. It is also developing a trans-shipment port in Kerala. “The idea is to model Adani Ports on the lines of international port operating Pirms AP

Moller of Denmark and DP World of Dubai,” a second executive said, also on condition of anonymity. “The entire port play will be supported by logistics, infrastructure and cargo support from group companies,” he said. “Adani Ports is very aggressive in acquisitions and consolidations in the Indian maritime market as it is looking at better bargaining power with its shipping lines and other vendors,” said Mathew Antony, managing partner at Aditya Consulting, a boutique legal and business advisory Pirm specialising in shipping and ports.

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Sialkot FIA nabs three human traffickers during operation SIALKOT: The Federal Investigation Agency (FIA) has started crackdown against human traffickers and arrested three human traffickers during a crackdown.

Sources informed Customs Today that this operation is started on the directions of Deputy Director FIA Gujranwala Division Khalid Anees. An FIA team conducted raids in Sialkot and Narowal and nabbed three human traffickers who were identified as Adeel, Faisal and Aziz. All the arrested accused are involved in human trafficking from long time and they used to send people abroad on fake visas and documents after extorting huge money from them.

Tuesday, March 1, 2016

CUSTOMS BULLETIN

Multan customs to launch operation against smugglers MULTAN IMrAN ALI

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he Customs Intelligence and Anti-Smuggling Organization (ASO) will launch a joint operations against smugglers in Multan region very soon.

According to details, the joint anti-smuggling operations will be carried out on the directions of Director General Imtiaz Ahmad. Customs ofPicials will collectively strike hard at the smugglers to curb smuggling in their jurisdiction.

Customs Intelligence and AntiSmuggling Organization have decided to coordinate frequently by sharing information against smugglers to get fruitful results. Customs ofPicials have planned to carry out operations in the Dera Ghazi Khan region where Punjab Baluchistan border exists. Customs teams will start patrolling on various routes to capture smuggled goods.

Meanwhile, The Customs Intelligence and Investigation has seized three vehicles in an action due to violation of import policy. Sources told Customs Today that a team of Customs Intelligence and Investigation intercepted three vehicles.

peshawar rto form teams to ensure compliance of tax scheme PESHAWAR

NADIr khAN

www.customsbulletin.com he Regional Tax office has nominated inspection teams and assigned them targets in various areas of Peshawar to ensure compliance of the amnesty tax scheme.

Sources in RTO Peshawar informed Customs Today that the first team comprising Harood Hussain and Safeer Ahmad has been assigned the area of Khyber Pakhtunkhwa Chamber of

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Commerce and Industry. The second team is comprising Inspector Asmatullah and LDC Mumtaz Ali while the areas assigned to it is Bacha Khan square and surrounding areas.

The inner city of Namak Mandi and Khyber Bazar have been assigned to third team comprised of Inspector Imdad Hussain and LDC Muhammad Shoaib. The fourth team, which comprised Inspector Mohammad Ilyas and LDC Smiullah, will visit Chowk Yadgar as well as Qissa Khawani Bazaar. The fifth team will visit Saddar and

Peshawar Cantonment which comprised of Supervisor Kiramatullah and LDC Maqsood-urRahman.

The sixth team will visit Anjum Ali Arshad Supervisor and Basharat Hussain LDC. They will visit Hayatabad and University Road. All the lower rank officer have been assigned special duties on various date and targeted areas to convince people on voluntary tax compliance.

It may be added that FBR has set up a control room-cum-operational room in the FBR Headquarters to coordinate ac-

tivities in FBR’s field formations across Pakistan to facilitate and educate the traders about the Voluntary Tax Compliance Scheme which has been launched after approval of the Parliament.

The control room fitted with communication and connectivity gadgets, was made operational. A dedicated team of FBR officials has also been deputed at the control room to coordinate efforts for facilitating and educating the traders and motivating them to make full use of the Voluntary Tax Compliance

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Scheme.

All Regional Tax Offices have already been instructed not to issue any notice to a person who becomes part of this scheme, without the approval of FBR Headquarters.

To make the scheme successful and to facilitate the traders’ community, focal persons and sub-focal persons have also been appointed in all Regional Tax Offices (RTOs) while informative and explanatory material about the scheme has also been made ready for public information.