Saturday, 24 March 2018

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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

Daily

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Karachi, Sat March 24, 2018

MULTAN

IMRAN ALI

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he Model Customs Collectorate Multan, Recovery Branch, has issued an attachment warrant for M/s Mushtaq Leathers Industries for the recovery of outstanding amount of Rs49.524million.

The Mushtaq Leather Industry Ltd has imported raw material for the manufacturing of goods and evaded tax amount of almost Rs49.524million by paying less duties and taxes during the clearance of their import consignments from Multan Dry Port. The collectorate Multan has asked the importer several times for the payment of remaining duties and taxes but he failed to do so.

The Recovery Branch has attached their bank accounts and immoveable

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properties to recover the arrears in this regard. The Multan Customs has also impounded a vehicle and is auctioning two commercial shops located near Clock Tower, Ghanta Ghar Multan, for the recovery of outstanding amount after serving a final notice. The accused has taken stay order from the Lahore High Court Multan Bench against the decision of the Multan Customs. The Multan Customs has revived their recovery notice. Said importer has been using delaying tactics for depositing of their duties and taxes for the past few months. Now Superintendent Muhammad Yousaf Baloch has been appointed as an attachment officer for recovery under the Customs Rules-2001.The Multan Customs will also attach the bank accounts of defaulter for recovery under Section 202 of the Customs Act-1969.

Multan Customs issues attachment warrant for retrieval of Rs50m of arrears

Customs Export recovers Rs10.18m from defaulter companies after notices served

Quetta Customs seizes smuggled cigarettes worth Rs4.2m

FBR finalises budgetary proposals in consultation with stakeholders

Customs agents arrested for clearing illegal consignments at Dry Port Peshawar

MCC Recovery Branch, has issued an attachment warrant for Mushtaq Leathers | SEE PAGE 01 |

Customs Export has recovered an evaded amount of taxes & duties of Rs10.18m | SEE PAGE 02 |

Customs authorities have has seized huge quantity of NDP cigarettes worth Rs4.2m | SEE PAGE 02 |

FBR has finalized the budgetary proposals in a well-organized manner this year | SEE PAGE 07 |

Customsagentshavebeenarrestedfor facilitatingclearanceofillegalconsignments | SEE PAGE 08 |

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FIA arrests illegal traveller at Lahore airport Saturday, March 24, 2018

National

LAHORE: The Federal Investigation Agency’s (FIA) Immigration officials have arrested a passenger after he landed at the Allama Iqbal Airport from South Africa on an emergency passport.

The passenger, Nasir Mehmood of Umer Kot, travelled abroad from Lahore on a visit visa in 2014. Later, he went to Kenya and from there he entered South Africa via road without travel documents, the FIA official said. FIA officials arrested him and handed him over to FIA Anti-Human Trafficking Cell for investigation.

Customs Export recovers Rs10.18m from defaulter companies after notices served

Quetta Customs seizes smuggled cigarettes worth Rs4.2m QUETTA

KARACHI

CUSTOMS BULLETIN REPORT

WAQAR AHMED ANSARI

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he Customs authorities have has seized huge quantity of smuggled cigarettes worth Rs4.2 million from passenger buses. Quetta Collector Ashraf Ali forwarded the information to Additional Collector Preventive Zubair Shah that an attempt would be made to transport smuggled goods. A raiding team was constituted which intercepted two passenger buses for checking at Lakpas Checkpost. However, the drivers of the buses tried to escape by speeding away. The buses were also being escorted by accomplices of smugglers in two private cars who opened fire at customs check post, Lakpas which was retaliated by the staff. Anti-smuggling staff with the aid of other law enforcement agencies finally intercepted the vehicles near Lakpas tunnel and recovered large quantity of foreign origin cigarettes of brands including Marlboro, Pine, Dunhill and Benson & Hedges.

The smugglers also blocked the RCD Highway for more than two hours whereupon the local Levies lodged an FIR against the suspects and arrested one person. Customs officials seized the offending goods along with two coaches worth Rs6 million and investigations are underway.

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he Customs Export has recovered an evaded amount of taxes and duties of Rs10.18million from defaulter companies which were issued with notices to pay the outstanding dues on Monday. Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Sunshine Traders Hyderabad availed undue benefits and concessions after importing different consignments by misusing the SRO 566 through Examiner Basheer-uz-Zaman on September 2017. Sources further said that the company was allegedly involved in the tax evasion of Rs5.68million.

After detecting the tax evasion in the month of March 2018, the Customs Export served on it a final notice on 2nd of March 2018 to deposit the evaded amount within fourteen days, but it failed to do so.

After 19 days of the notice, the management of M/s Sunshine Traders Hyderabad deposited the evaded amount in the official account of the Customs Export on 19th of March.

On the other hand, the management of the M/s Basoo Chemicals also cleared Rs4.50million of taxes and duties. Sources told

the correspondent that M/s Basoo Chemicals also availed undue benefits and concessions and avoided paying taxes according to

the customs bylaws. The Customs Export authorities issued to it a final notice on 1st of March 2018.

After receiving the notice, the

management of the M/s Basoo Chemicals deposited the evaded amount of taxes into the official account on Monday.

Textile exports surge by 7.17pc to $8.8 billion P

ISLAMABAD

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akistan’s textile exports recorded growth of 7.17 percent during eight months (July to February) of the ongoing Oinancial year (2017-18). The country exported textile and clothing products worth $8.8 billion during July-February period of the year 2017-18 as against $8.2 billion of the corresponding period of the previous

year, according to the Pakistan Bureau of Statistics (PBS). The growth in textile and clothing products exports enhanced the country’s overall exports to $14.8 billion during July-February of 2017-18 as compared to $13.3 billion of the corresponding period of the last year.

“These results have been achieved due 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 Ministry of Commerce said. The positive trend in the international demand and exchange rate correction are also expected to help sustain this rising trend in the coming months. According to the PBS, the main driver of growth was the value-added textile sector. Exports of ready-made garments went up by 13.08 percent in the first eight months of the ongoing financial year. Similarly, exports of knitwear increased by 13.3 percent during the period under review. Exports

of bedwear went up by 4.51 percent in value. Similarly, exports of made-up articles, excluding towels, increased by 7.32 percent. Art, silk and synthetic textile exports grew by 80.08 percent during the period under review. Exports of cotton yarn witnessed an increase of 1.87 percent and exports of cotton cloth recorded minor growth of 0.04 percent. However, exports of cotton carded tumbled by 97.87 percent.

Exports of tents, canvas and tarpaulin also declined by 39.49 per-

cent. Meanwhile, the exports of food commodities recorded massive increase of 21.74 percent during July-February period of the ongoing Oinancial year. In food commodities, exports of rice recorded growth of 22.14 percent, Oish 10.18 percent and vegetables exports went up by 39.78 percent. Meanwhile, exports tobacco enhanced by 123.6 percent and wheat exports also recorded growth during eight months of the current Oiscal year.

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ISLAMABAD

M ARSHAD

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ike every year, the Federal Board of Revenue (FBR) has Oinalized the budgetary proposals in a well-organized manner this year also. The FBR conducts a comprehensive budget exercise every year before announcement of the federal budget.

The FBR makes concerted effort to involve all stakeholders, including business community, chartered accountants, tax bars, etc. Under this exercise, budgetary proposals are called from the trade bodies / chambers of commerce and industry from across the country and the Oield formations of the FBR. The same are thoroughly scrutinized, meetings are held with trade bodies representatives, proposals are consolidated and forwarded to the federal cabinet during the budget for approval from the parliament as Oinance bill. On the recommendations of the stakeholders, the FBR is continuously striving hard to simplify the process of returns Oiling

and to remove the difOiculties faced by taxpayers while Oiling returns. The FBR is making earnest efforts for simpliOication of tax returns, system/ processes to facilitate taxpayers. In this regard, special measures along with procedures have been proposed in the budgetary proposals.

Sources at FBR told Customs Today that FBR had dedicated specialized wings for this task, which addressed the issue of anomalies in Oiscal laws by proposing amendments in the Finance Bill. Similarly for removal of difOiculties in the administration of Oiscal laws, FBR issues administrative guidelines to its Oield formations wherever intervention is required in smooth administration of tax laws.

On the customs side, the sources said that the above exercise was being carried out at two levels; field formations, and FBR. Chief Collectors (Appraisement/Enforcement), Director Generals (Transit Trade/Valuation/ Intelligence & Investigation/Port Clearance Audit/ Internal Audit/Intellectual Property Rights etc), Collectors (Appraisement/Preventive/Exports/ Adjudication etc), Directors (Transit Trade

valuation/ Intelligence & Investigation etc), Additional Collectors/Directors, Deputy Collectors/Directors and Assistant Collectors/Directors are involved in budget exercise in the field. At FBR level, the sources added that Member (Customs) as head of Customs Department, Chief Customs (Tariff/Facilitation Compliance/Exports & Exemptions), Secretaries (Budget/TariffI/Tariff-II/Tariff-III/Law and Procedure/ Enforcement and Coordination and Export Policy/DRD/Grants and Special Exemption/Valuation & Audit) etc were carrying out this exercise. The sources said that Member (Inland Revenue Policy), Chief (International Tax), Chief (Sales Tax & Federal Excise Policy), Chief (Income Tax Policy), Chief (Law & Clarification), Secretary (Exchange of Information), Secretary (Tax Treaties & Conventions), Secretary (Transfer Pricing), Secretary (Sales Tax Budget), Second Secretary (Law & Procedure), Secretary (Income Tax Budget), Secretary (Rules & SRO), Secretary (Income Tax Policy), Secretary (Income Tax Clarification) and Secretary (Court Matters) were involved in this exercise.

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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

Economy in strain

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s the mandate of current government is closing to an end, the country still stands on the crossroad where the previous government had left it in 2013. During the period, the foreign exchange reserves were maintained on borrowed money, exports slipped to the lowest ebb and the economy not only remained in dire strain but oscillated between hope and despair. The biggest failure of the Pakistan Muslim League-Nawaz government is not the economic disaster, but mismanagement and administrative failure. The economy gradually went down, rupee devaluated and import of luxury items increased.

Despite tall claims by the officials, every state institution is drenched in corruption and occupied by incapable policymakers.

The government lost every opportunity to extricate the country out of the economic mess despite achieving Generalised Scheme of Preferences from the European Union, Chinese investment and regional stability.

The policymakers could not remove the hindrances in the way of development whether it was corruption, lack of reforms or incapacity of the leadership to accept the challenges of the new world economic order. The country is being run on ad hoc basis without serious understanding of the issues and there is a long way to go to achieve the cherished goal of prosperity. As the general elections are near, the three major political parties must induct financial managers, economy experts and technocrats in their ranks to do homework before reaching the corridors of power. The world is changing fast and the beloved politicians still live in the past and cannot see beyond their vested interests. The country has been mortgaged to foreign lending agencies and warlike industrial plans are required to rid the nation of the piling up loans. Reports suggest the volume of loans will cross the figure of $100 billion during the next financial year and debt servicing will appear as a major task. The PML-N took loans without considering the consequences and if it comes to power again, it will have to reap what it sowed during the last five years.

There should be zero tolerance for bad governance and a system is required to ensure good governance.

Need to encourage foreign investors I

LAHORE

DR AFTAB AFZAL

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t is the time the government policymakers should Oind an answer as to why the foreign investors other than China are only interested in the local market and are reluctant to invest in the export-oriented industries.

China has made a huge investment in power and infrastructure sectors under China Pakistan Economic Corridor, but trust deOicit on the ability and capacity of the government still prevails.

There is a huge space for foreign direct investment in the exportoriented industries of Pakistan.

The government recently took initiative to improve energy sup-

ply and upgrade the infrastructure to create conductive environment for foreign investors, but still there is a long way to go. Chinese containers Oill to the brim are continually pouring into Pakistan through road and sea routes, but returning to China empty from the Pakistani ports.

This is called the business unusual. The volume of trade is in China’s favour and now the government is trying to revise free trade agreement with Beijing. It is yet to be seen why an agreement was signed which needed an instant revision. But in a country where accountability process is politicized, and anyone involved in dereliction of duty walks scotfree, this kind of follies are hall-

mark of the working of the ofOicialdom. Despite a geo-political situation and location of Pakistan, the level and size of investment is utterly meager. On the other hand, the countries like Bangladesh and Vietnam have outperformed Pakistan in business, trade and investment. They have policies and we have rhetoric and policies win all the time when those are implemented with sincerity. The objective of the CPEC is to connect the two countries for mutual beneOits and interests. Otherwise, there is no use of burdening the nation with billions of dollars loans. If the CPEC is a game changer, it should be beneOicial not only for Pakistan and China, but also for the entire

region. The government should now fully concentrate on the development of special economic zones and export processing zones coupled with tax and duty concessions for the international investors. The bureaucracy must be told in clear terms that there will be zero tolerance for red tape and they would have to extend their share in the economic development of the country. So far, hundreds of foreign companies are already working in Pakistan in various sectors and they need encouragement from the government to expand their operations.

The government should show its maturity and restore the trust of the investors in its policies. Actions speak louder than words.

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Brazil prepares to join ISA reaches 200 MW of solar DG Saturday March 24, 2018

World

BRASILIA: Brazil could join the International Solar Alliance International (ASI) soon. In the framework of the recent Brazilian accession to the International Renewable Energy Agency (IRENA), the entry into the ASI will represent an important step in the international positioning of Brazil.

According to the executive president of the Brazilian solar association ABSOLAR, Rodrigo Sauaia Brazil’s accession to the ASI will open the door for Brazil to benefit from multilateral programs and actions in the areas of financing, incentive policies, regulation, business models, technology, research and development, among others.

Chinese customs enforcement ramps up with Blue Sky 2018

Netherlands leads to arrest of Lehigh Acres man AMSTERDAM

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BEIJING

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hina’s General Administration of Customs. It will focus on preventing the import of recovered materials named in the country’s ban on certain recyclables, which took effect Jan. 1, as well as cracking down on falsiOied import documents. According to authorities, a common practice has been for smugglers to circumvent import regulations by illegally using another company’s import license.

Blue Sky 2018 follows a smuggling enforcement action of the same name in 2017. Customs inspectors across the country carried out a handful of coordinated actions throughout the year, including in November and December.

The campaign is related to National Sword, a wider smuggling crackdown launched in February

Brazil criticizes new US steel aluminum tax razil’s Finance Minister criticized the decision by US President Donald Trump to raise import tariffs on steel and aluminum. According to Minister Henrique Meirelles the measure could harm not only the world but US industry as well. Investors generally find trade warfare very negative; it is negative for everyone involved and, of course, we are against it and will make that position clear,” Meirelles told reporters in New York, where he is trying to woo foreign investors to invest in Brazil. According to Meirelles, ‘Brazil’s experience with trade protectionism is extensive’ but these were usually not successful from the economic point of view, not contributing to increase national productivity or increase the industry’s share of the economy. –CB Report

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2017 targeting a variety of materials.

“National Sword” has come to be used in the West as a catch-all term for China’s recyclables import restrictions. In a statement to Resource Recycling, Harry Lee of the China Scrap Plastics Association (CSPA) described Blue Sky as “further development of Green Fence and National Sword” in the crackdown on illegal scrap imports. According to state news outlet

Xinhua, last year’s Blue Sky actions led to the seizure of 866,800 metric tons of solid waste and hundreds of arrests. An online translation of a Chinese customs report explains that the campaign targeted importers who smuggled plastic, mainly through the use of purchased licenses, and then resold the material to domestic unlicensed factories and workshops for processing.

Russian made cars now hold lion’s share of domestic market

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ussians are buying a record number of domestically-made cars, according to a recent study by PwC. Sales have grown for the Oirst time since the economic crisis. The share has grown to a record 83 percent from the 65 percent seen in 2012, the audit Oirm reports. In total, 1.475 million cars were sold last year in Russia. Of these, 255,000 were imported, which is 7 percent lower than in 2016.

Brands such as Kia, Hyundai and Renault are rarely imported to Russia because they have manufacturing plants in the country. All passenger models of Hyundai are locally produced, only the H-1 minibus is imported. All Russian sales hits of Renault are produced in the country – the Kaptur, Duster, Logan, Sandero and Sandero Stepway models, the representative of the French company said. –CB Report

Lehigh Acres man was arrested after authorities connected him to a package shipped from the Netherlands that was allegedly Oilled with drugs.

Nelson Pechter, 31, was arrested at his home in the 900 block of Hillcrest Avenue. According to an arrest report from the Lee County Sheriff ’s OfOice, a package to Pechter from the Netherlands was selected for inspection by U.S. Customs OfOicers. On Thursday, an undercover cop delivered the parcel to the home on Hillcrest Avenue. Pechter was not home, but during surveillance, authorities saw him arrive at the home and pick up the package. Pechter is accused of trafOicking in amphetamines, marijuana cultivation, possession of marijuana with intent to sell, evidence destruction, posses-

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sion of 10 or more counterfeit bills, possession of counterfeit ID, possession of controlled substance, possession of drug equipment to manufacture drugs. Meanwhile Peru exported 247,000 tons of avocados worth $580 million in 2017, positioning itself as the world’s secondlargest supplier of this fruit. According to the Agriculture and Irrigation Ministry, shipments of this Peruvian product mainly Hass avocados grew in volume (27%) and value (46%) compared to 2016.

The main destinations for this fruit were the Netherlands, the United States, Spain, England, China, and Chile; together, they received 95% of the country’s total exported value. Additionally, national production of avocados exceeded 470,000 tons in 2017, a 3.4% increase compared to 2016. According to an article by andina.com, the Ministry highlighted the good dynamism witnessed in the production of the southern (+15%) and northern (+12%) zones.

Reality of bed taxes creeping up in NZ arlier this week the city council of the capital of New Zealand, Wellington, opted to investigate the feasibility of widening the taxes applied to tourismbased industries in the area.

At the start of March, the Council announced that it was looking at instating a bed tax on accommodation providers in the city.

The proposal was met with almost immediate backlash from the hospitality industry. It was claimed by the industry that a targeted bed tax would place a tax burden on providers, despite the fact that tourism benefits several industries

at the same time. The Council has now stated that it will broaden its view and try and create a new means by which a greater portion of the tourism industry could be targeted. Meanwhile, New Zealand dollar eased against the US dollar today ahead of what may be a larger-than-expected fall in dairy prices this week and continued to wane against the euro as positive news out of Germany overshadowed any uncertainty around the Italian election. The kiwi was trading at US72.22c at 5pm from US72.39c at 8am and US72.34c in New York. –CB Report

Turkey sent $18.4B development aid in last 3 years

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ANKARA

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urkish government provided development assistance worth nearly $18.4 billion to foreign countries over the past three years, Prime Minister Binali Yildirim said.“Turkey’s development aid to other countries amounted to around

$3.9 billion in 2015, which rose by 65 percent to reach nearly $6.5 billion in 2016,” Yildirim said in a statement.

“According to the preliminary Oigures for 2017, Turkey showed exemplary responsibility and left behind many developed countries by granting nearly $8 billion development aid to the rest of the world, especially to the Middle Eastern and African countries,” he noted. Turkey ranks Oirst if

one takes into account national incomes, considering the country’s gross national income was $857 billion in 2016, while in the U.S. it was $18.7 trillion. Turkey had ranked third in the DI report for the years 2013, 2014 and 2015. Yildirim said Turkey ranked sixth among the member countries of the OECD’s Development Assistance Committee in 2016 which spent a total of $142.6 billion

in development aid and is expecting to be in the top positions in 2017.

“The priority of our aid policy is to focus on social infrastructures and services to meet basic development needs, production sectors, and urgent humanitarian support to relieve crisis zones. “Turkey will remain the world’s conscience within our humanitarian responsibilities and international commitments.”

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M/s Akthar Hussain & Co moves SHC against VR No 1206/2017 KARACHI: The Sindh High Court (SHC) issued notices to the customs department and deputy attorney general on a constitutional petition filed by M/s Akthar Hussain & Co challenging Valuation Ruling Number 1206/2017 enhancement of valuation on import of door handles, thumb locks, entrance looks etc.

During hearing of the petition a two-member also directing them to file their para wise comments on next date of hearing.

Saturday, March 24, 2018

CUSTOMS BULLETIN

Customs agents arrested for clearing illegal consignments at Dry Port Peshawar PESHAWAR IRFAN BAHADUR

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ustoms clearing agents have been arrested for facilitating clearance of illegal consignments worth millions at Peshawar Dry Port. The names of Customs Clearing agents and sub agent were mentioned in inquiry conducted at Customs House Peshawar after the scam was detected by customs department in which deputy collector Athar Naveed was also accused, sources at Customs House Peshawar revealed.

Asif Ali of M/S Ittehad Customs Agency, Peshawar and Proprietor of M/S A.Q Customs Clearing Agency, Peshawar Muhammad Asim also found involved in corruption of clearing 88 illegal consignments at Dry Port Peshawar. The accused being customs agents deliberately did not inform the customs authorities regarding the illegal extension of LC. They in connivance with each other and accused customs ofOicials and importers cleared and proceeded 88 illegal consignments.

During investigations of mega corruption at Dry Port Peshawar, it was also revealed that customs clearing agents involved in the clear-

ance of restricted bound consignments of M/s Jan Builder based at Karachi were also arrested by National Accountability Bureau (NAB).

The Customs Clearing agents along with importers and customs ofOicials posed loss of above Rs 918 million from 2015 to 2017 in which big

names were also accused by inquiry carried out by customs department.

Deputy Collector Athar Naveed has been accused for keeping blind eye on illegal activities carried out at Peshawar Dry Port Peshawar.

Earlier the Deputy Collector got stay order against leaving his post

until full investigation is conducted. So the deputy collector during the investigation performed his duties at different positions.

The investigation conducted by NAB also revealed that unconditional favor is given to few importers while strict rules are ap-

plied to clear consignments of other importers. The Dry Port Peshawar where goods are imported through various channels for further distribution. The clearance of illegal not only posed loss of millions but also disheartened genuine importers at Peshawar.

NAB starts probe against Anti-Corruption Establishment directors LAHORE

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high-level investigation team of National Accountability Bureau (NAB) has started probing into the director general and regional directors of the Anti-Corruption Establishment (ACE) Punjab.

Sources in the bureau said that the inquiry was started on the directives of NAB chairman

Justice (retd) Javed Iqbal. ACE Punjab director general Brig (retd) Muzaffar Ali Ranjha will be probed for misuse of official power. Among the regional directors, Imtiaz Ahmad Malik, the regional director in Sahiwal, will be the first officers to be inquired by the NAB CIT. The team is preparing a charge sheet against him. The CIT will particularly focus on corruption cases hastily closed down by the ACE Punjab pertaining to the irrigation, local governments, highways, buildings and public health and engineering departments of the

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provincial government.

The bureau suspects that the ACE has either hastily closed these inquiries without substantive effort or left files pertaining to these cases to gather dust at its offices without any action against officials accused of corruption.

Earlier last week, while addressing a seminar, Justice (retd) Javed Iqbal had complained that some departments of the Punjab government were not cooperating with the bureau, and warned that failure to cooperate with the anticorruption officials would not be tolerated in future.