March 25 layout 1

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Vol 1 Issue No. 315

Karachi, Fri March 25, 2016

ISLAMABAD

M ARSHAD

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he Federal Board of Revenue (FBR) has Qinalized a plan to collect Rs 7 trillion per year during the next three years. The FBR has prepared this plan in the light of recommendations of the Tax Reforms Commission (TRC) and it will be launched by July 1st this year after approval of the budget for the Qinancial

year 2016-17 by parliament. Sources told Customs Today that under the plan, the FBR has already expanded its jurisdiction to district and tehsil level.

In this regard, economic and tax proQiling of almost all the districts of the county have been prepared. Then on the basis of statistics and data collected through an extensive exercise of preparation of economic and tax proQiling of all districts, have been matched with the database of National Database and Registration

Price Rs. 14.00

Authority (NADRA), Pakistan Bureau of Statics (PBS) and Benazir Income Support Program (BISP) and other agencies.

Under the plan, tax to GDP would be enhanced to 14% in the next three years. In this regard, jurisdiction of Large Taxpayers’ Units (LTUs) located in three major cities Lahore, Islamabad and Karachi will be conQined within the jurisdiction of those cities, however, suburb and slums areas will be handled through Regional Tax OfQices (RTOs).

Customs Intelligence seizes plastic dana, involving tax evasion of Rs 12b

Customs ASO detains truck loaded with spices

$25m Tarbela Switchyard up-gradation contract awarded to Chinese firms

Modern Customs Complex at Torkham to enhance trade with Afghan, CARs

LCCI urges FBR to clear stuck-up refund claims

DG of Customs Intelligence has made a record seizure of “plastic dana” | See pAge 02 |

The ASO of the Customs Preventive has seized an illegally imported truck | See pAge 03 |

Wapda has awarded a $25m Tarbela Switchyard up-gradation contract china | See pAge 04 |

The govt is constructing a mega stateof-the-art Border Customs Complex | See pAge 12 |

LCCI has urged the FBR chairman to ensure early payment of stuck-up refund | See pAge 09 |

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IHC disposes of two references filed against ATIR Friday, March 25, 2016

National

ISLAMABAD: The Islamabad High Court has disposed of a couple of references filed against the Appellate Tribunal Inland Revenue (ATIR).

M/s Hems Corporation and M/s Mia Corporation (Private) Limited had filed the cases against ATIR, challenging its decisions pertaining to outstanding amounts under the heads of federal excise duty and income tax.

A single bench of the IHC comprising Justice Aamer Farooq heard the cases and disposed of with a direction to decide the fate of appeals pending before the tribunal in 60 days.

Meanwhile, the court also head a case against Federal Tax Ombudsman (FTO).

customs intelligence seizes plastic dana, involving tax evasion of Rs 12b

customs Appellate tribunal Bench-ii will hear case filed by usmanul Haq ISLAMABAD

nAeeM uLLAH tARiQ

KARACHI

S R kHAn

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he Directorate General of Customs Intelligence and Investigation has made a record seizure of “plastic dana” during the current Qiscal year, it is learnt. According to details, on the directives of Director-Customs Intelligence Asif Marghoob Siddiqui, a team of the Directorate General of Customs Intelligence was constituted headed by the Deputy Director Muhammad Azam Khan.

The team on a tip-off kept strict surveillance at Karachi-Sukkur border and signaled a truck to stop recovered a large quantity of “plastic dana” from the upper Qloor of the truck. On the occasion, Superintendent of the Directorate General of Customs Intelligence Wilayat Shah conQiscated the smuggled plastic dana. The Deputy Director Muhammad Azam Khan informed Customs Today that the Customs team made one of the biggest haul in the shape of plastic dana during the current year. The consignment carried a tax evasion of around Rs 12 billion.

Responding to a query, Deputy Director Azam Khan said that the seizure report of the impounded plastic dana consignment has been prepared and would be forwarded to the legal forum in next few days.

Deputy Director, Directorate of

single bench of the Customs Appellate Tribunal Bench-II, comprising of Muhammad Nasir Khan (Member Technical) will hear a case on Friday seeking release of vehicle from Collectorate of Customs, Islamabad. Muhammad Usmanul Haq, the appellant, had filed the case before the tribunal seeking release of vehicle auctioned by an embassy in Islamabad in 1983. Haq, who claims to be owner of the vehicle, had pleaded the tribunal to order customs authorities to release his vehicle since he had paid the due amount for the Toyota Corolla, model 78. During the previous hearings, the department had sought time from tribunal in order to submit related documents. Advocate, Saddiqa Bibi had filed the case at tribunal on behalf of Usmanul Haq. Meanwhile, A division bench of the Customs Appellate Tribunal Bench-II will hear four tax references on Tuesday (today) involving Directorate General of Intelligence and Investigation and Collectorate of Customs, Islamabad. The division bench of the Customs Appellate Tribunal comprises Member Technical Muhammad Maqsoodul Hassan and Member Technical Muhammad Nasir Khan.

Customs Intelligence further said that the Director Customs Intelligence and Investigation-FBR Asif Marghoob Siddiqui has clear directives in connection with curbing smuggling activities at Karachi borders. Replying to another query, the Deputy Director further said that the authorities concerned are attempting to thread out the importer of the said smuggled consignment of plastic dana and also started inves-

tigation into the case.

Meanwhile, The Custom Intelligence and Anti-Smuggling has seized laptops, memory cards and batteries worth Rs 1.56 million involving duty/taxes amounting to Rs 828,890. On the directions of Director Intelligence Asif Marghoob, Additional Director Nadeem Ahsan formed a team comprising Deputy Superintendent Haji Aslam, Inspectors Parwez Ahmed Zardari,

Muhammad Aqmal Hashmi, Rana Ansram, Munwar Ali, and Khuram Saeed. The team raided a godown in Saddar area of Karachi and recovered 20 laptops, memory cards and batteries of assorted brands.

The items were confiscated under customs laws after making a case No. M-2148/DCI/SEIZ/2015. During the raid, no accused was arrested, while FIR has not been lodged so far.

tax compliance scheme voluntary, not compulsory: Anwar A

LAHORE

M HAYAt

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fter availing Voluntary Tax Compliance Scheme (VTCS), one can become a respectable registered taxpayer, as this is a business-friendly initiative of the government, former Lahore Chamber of Commerce and Industry (LCCI) Vice President Kashif Anwar told Customs Today here the other day.

He said that the VTCS was a giant

leap towards expansion of tax net.

He said that Pakistan needed resources for health, education and infrastructure projects and it was possible only through bringing untaxed sectors into the tax net.

Kashif Anwar , who is an expert on the scheme, said that the Voluntary Tax Compliance Scheme was voluntary and not compulsory. He said that if any trader did not want to avail the scheme, he could Qile a normal return. This was for individuals, association of persons (AOPs) and

wholesalers or dealers who were not registered with Income Tax Department. He added this is for genuine businessmen who cannot declare their capital because of any reason.

They can declare now without any problem. This is not for manufacturers, importers, sales tax registered persons either trade individual or AOP, dealer, distributor or wholesaler and sectors in services industry.” Kashif said this was working capital whitening scheme and not assets whitening scheme. For assets

one must had a source to declare voluntarily in wealth statement. He said that one could not purchase assset or property from this working capital, no withholding tax adjustment or tax credits against tax payable for tax year 2015 to 2018.

He said that VTCS gave facility to take beneQit of imputable income in wealth or accounts on the basis of tax paid during tax years 2016 to 2018. Throwing light on the beneQits of Voluntary Tax Compliance Scheme (VTCS), he said that after

availing this scheme one becomes a respectable registered tax payer. He said that there would be a simpliQied one page income tax return as per our demand and the beneQiciary would not be registered in sales tax if he qualiQied under Rule 6 of Chapter II of Sales Tax special procedure rules where sales tax was collected on electricity bills and other conditions, would not submit previous returns; would not receive notice; would not prepare wealth statement for tax years 2015-2018 etc.

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FIA detecting vehicles cleared as ambulances LAHORE: The Federal Investigation Agency (FIA) has started investigation in a case pertaining to the import of vehicles in guise of ambulances but being used for commercial purposes.

The FIA wrote letters to Excise and Taxation Departments of all provinces to get details about the vehicles, which are registered as ambulances in order to detain the accused persons. The investigation was kicked off following a case against commercial vehicles, which revealed that many vehicles imported for non-profit usage are being used for taking profits.

customs impounds non-duty paid Land cruiser worth Rs 3.2 million

Friday March 25, 2016

National

customs ASo detains truck loaded with spices

MULTAN

iMRAn ALi

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he Customs Intelligence and Investigation has impounded a non-duty paid Land Cruiser from Sadiqabad during a crackdown. According to details, a team of Customs Intelligence impounded the vehicle on Friday night near Kot Sabzal Road.

The Land Cruiser with number plate of a member of the National Assembly, was crossing a road when the Customs squad checked the vehicle.

The driver was asked to show original documents of the vehicle, but the documents presented by him were verified from the motor registration authority and found to be forged. The Customs officials seized the vehicle and formed a seizure report.

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fiA arrests a jeweler for running illegal business of hundi SIALKOT

ZAfAR MALik

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he Federal Investigation Agency (FIA) has arrested a Daska city based accused leading jeweler, Sajjad Ahmed for running illegal business of hundi.

FIA Deputy Director Chaudhary Khalid Anees told that FIA team led

by Sub-Inspector Khizar Hayyat Gondal raided the jewelry shop of the accused in Sarafa Market Daska and arrested.

He said that accused had been running illegal business of hundi and money exchange there. FIA also seized the national and foreign currencies worth millions of rupees from his possession.

He said that FIA has sent the accused behind the bars after registering a case against him.

Further investigations are underway.

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LAHORE

M HAYAt

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he Anti-Smuggling Organization (ASO) of the Customs Preventive has seized an illegally imported truck loaded with spices. Sources told Customs Today that on the information of Additional Collector Customs Amir Rasheed, an ASO team raided Akbari Market and detained a truck loaded with non-customs paid spices worth millions of rupees.

Sources said that the Pak Kashmir Goods Company has illegally brought the spices loaded truck from Rawalpindi. The non-customs paid spices were to be dumped in the local market.

The ASO has registered a case and has started investigations. The ASO raiding team was consisting of Superintendent Munawar Khan and inspectors of the organization.

Meanwhile, Model Customs Collectorate Preventive Collector ZulQiqar Younis has distributed work of the collectorate among eight deputy and assistant collectors.

According to the detail, Deputy Collector Saima Ayyaz will look after Air Freight Unit (AFU) administration, Group-I and II, adjudication of AFU cases, audit and supervision of betel leaf adjudication and appeals.

Assistant Collector Palwasha Syed will handle all matters of Passenger Facilitation Center (PFC), while Assistant Collector Muham-

mad Adnan Khan will look after Anti-Smuggling Organisation (ASO), Investigation& Prosecution, GPO, state warehouse and auction.

Assistant Collector Asim Awan will be responsible of all matter of airport trafQic, baggage and adjudication of trafQic cases. On the other hand, Assistant Collector Muhammd Akram will be incharge of T-10 Railways Station, Wagah, DDRA and departmental representative. Assistant Collector Hamza Lak will look after AFU im-

ASo team raided Akbari Market and detained a truck loaded with noncustoms paid spices worth millions of rupees. Sources said that the pak kashmir goods company has illegally brought the spices loaded truck from Rawalpindi. the non-customs paid spices were to be dumped in the local market

court remands alleged currency smuggler LAHORE

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M iMRAn MeHAR

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he Special Court of Customs Taxation and Anti-Smuggling has sent an alleged currency smuggler to jail on a 14-day judicial remand. The suspect, Tahir Bharwana, was intercepted by Customs authorities at Lahore airport when he was going to Bahrain through a private airline. The ofQicials checked

his luggage and recovered $7,135 and 16,000 Bahraini Dinars. The total worth of the recovered currency is estimated at Rs 5.2 million. The customs ofQicials arrested him for violating the Pakistan Customs laws and registered a case against him under Section 2 (s), 16, 139, 156, (17), 87 (70), and 178 of Customs Act, 1969. A FIR number 4/16 has also been lodged at Lahore Customs Investigation and Prosecution. Earlier, the court had remanded the accused into the custody of Customs

Court on physical remand.

Meanwhile, The Special Federal Court of Customs Taxation and AntiSmuggling has approved the bail plea of three suspects who were arrested from Sialkot International Airport on March 1.

Sources told Customs Today that the suspects were arrested by the Federal Investigation Agency (FIA) on the information of a smuggler who was caught while trying to smuggle a huge amount of foreign currency from Sialkot to Sharjah.

port examination, ICG, temporary imports and bank guarantees. Assistant Collector Muhammad Naeemullah will deal with AFU Group-III, law and Federal Tax Ombudsman (FTO), while Assistant Collector Ejaz Shaheen will handle the matters, including exports, MCD and recovery. Meanwhile, The Directorate of Customs Investigation and Intelligence has seized non-customs paid vehicles and contraband goods during the seven months of Qinancial year 2015-16.

'it sector exempted from 1% addl custom duty’ elecom sector is excluded from the recently levied one percent additional customs duty, as most of Information and Communication Technology (ICT) related items are currently at lowest slab of Pakistan Customs tariff of 2 percent customs duty only. This was stated by theFBR while briefing the Senate Committee on Finance.

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Ombudsman directs PIA to refund passenger’s money ISLAMABAD: Federal Ombudsman has directed Pakistan International Airline (PIA) to refund ticket money for wrongly offloading a Saudi Arabia bound handicapped overseas Pakistani passenger Amjid Pervez Siddiqui last year. Senior Advisor Law and Grievance Commissioner for Overseas Pakistanis Hafiz Ahsaan Ahmed Khokhar declared PIA’s action against a handicapped persons was oppressive, unjust and unreasonable. Khokar directed PIA to submit compliance report within 30 days. As per details an overseas Pakistani Amjid Pervez Siddiqui was offloaded from the plane due to absence of attendant with him despite that fact that a friend and a niece was travelling with him in the same flight.

Friday, March 25, 2016

Business

pSX sheds 126pts at closing KARACHI

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he bearish trend further deepened at the last session on Thursday as the Pakistan Stock Exchange (PSX) lost 126.42 points to drop to 32801.88 points level at closing.

The stocks recorded the highest trading level of 32942.02 points and lowest level of 32778.41 points, with the volume of 86.36 million shares, having about Rs4.62 billion value. As many as 303 companies were active; of which 120 advanced, 166 declined and 17 remained unchanged. Commercial banks was the top traded

Balochistan to get 22 Lpg air-mix plants ISLAMABAD

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ui Southern Gas Company (SSGC) will set-up liquefied petroleum gas (LPG) air-mix plants in 22 towns of Balochistan province, official sources in the Ministry of Petroleum and Natural Resources said on Tuesday. The company, after a detailed survey, has identified the towns in the province from where LPG air-mix would be injected in its system to supply the commodity to locals, they told APP.

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sector with 16,996,100 volume, while auto assembling remained second with 15,155,650 volume. The

three top traded companies were Dewan Motors with a volume of 7,783,000 and price per share of

9.95 (-0.49), TRG Pak Ltd with a volume 7,302,500 of price per share of 27.40 (0.73), Fatima Fert with a volume 4,848,000 of price per share of 31.90 (0.06). The top three gainers were Colgate Palmo with price per share 1489.99 (27.99), ICI Pakistan XD with price per share of 434.51 (11.21) and Punjab Oil XD price per share of 234.97 (11.18). The top three losers were RaQhan Maize XD with price per share of 7600 (-380), Unilever Foods with price per share of 5100 (-90) and Murree Brewery per share of 809.90 (-25.60). Earlier, the Pakistan Stock Exchange started trading with negative note and dropped 40 points to reach 32884.22 points level in early trading. The bearish trend continued till midday as the PSX lost 28.04 points to reach 32900.26 points level.

govt releases over Rs 353 billion for development projects ISLAMABAD

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he government has so far released over Rs 353.288 billion for different social sector development projects under Public Sector Development Programme (PSDP) 2015-16 against the total allocations of Rs 700 billion earmarked for the current Qiscal year.

According to the latest data of the Ministry of Planning, Development and Reform, the government re-

leased Rs 35.795 billion for infrastructure development projects of National Highway Authority (NHA) against its total allocation of Rs 159.6 billion for FY 2015-16.Similarly Rs 88.953 billion have been released for Water and Power Development Authority (WAPDA) Power Sector for which the government has allocated an amount of Rs113.896 billion for the current Qiscal year. A sum of Rs 15.454 billion has been released for Water and Power Division (Power Sector) for its various projects for building the water reservoirs against its total al-

locations of Rs 30.120 billion in federal PSDP 2015-16.

An amount of Rs 18.499 has been released for different projects of Pakistan Atomic Energy Commission against its total allocation of Rs 30.408 billion for current year.

Meanwhile, the Higher Education Commission has been provided Rs 8.093 billion against its total allocations of Rs 20.5 billion while Rs 13.316 billion have been released for the Railways Division for which an amount of Rs 41 billion has been earmarked for the current fiscal year.

chinese firms given $25m tarbela Switchyard upgrading contract LAHORE

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ater and Power Development Authority (Wapda) has awarded a $25 million Tarbela Switchyard up-gradation contract to the Chinese consortium. Wapda signed the contract with Etern-CCCEHei, a consortium of three Chinese Companies, for up-gradation of the existing Switchyard of Tarbela Hydel Power Station for dispersal of electricity from Tarbela Hydel Power station after the completion of the 1,410 MW – Tarbela 4th Extension Hydropower project. As per the contract, the project will be completed by the end of May 2017. Wapda Chairman Zafar Mahmood, Member (Water) Muhammad Shoaib Iqbal, Member (Power) BadrulMunir Murtiza, Member (Finance) Anwarul-Haq, Tarbela Dam Project General Manager Iqbal Masood Siddiqui and other senior officers of the authority were also present on the occasion. Tarbela 4th Extension Hydropower Project Director Sohail Khan and the Consortium’s chief representative Cao Yutao signed the contract on behalf of their organisations. Speaking on the occasion, the Wapda Chairman urged the consortium to complete the up-gradation of Tarbela Switchyard within the stipulated time.

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pakistan’s food exports to uAe increase by 27% ISLAMABAD

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akistan’s food and agro-sectors exports to UAE in 2015 have touched the half-a-billion dollars mark, which compares extremely favourable to 2012 sales of $362.4 million.

According to Gulf News, Dr Saeed Qadir, commercial counsellor at the Consulate General of Pakistan in

Dubai has said that food exports from Pakistan to UAE have increased by 27 per cent over the last two years. Pakistan has boosted sales of its traditional agricultural products while simultaneously expanding its reach into new product areas such as processed meat and poultry products, tea, concentrated milk and cream, certain fruits and vegetables, spices, herbs and confectioneries, he added. Dr Qadir said that Pakistan’s revitalized food and

beverage agricultural industry is now ready for a major export push at Gulfood 2016. He said the 21st edition of the world’s largest annual food and hospitality trade event being held in at Dubai World Trade Centre (DWTC) from February 21 to 25. “More than 90 Pakistani companies are due to take part in a Gulfood 2016 International Exhibition”, he added. According to the report, the representation of Pakistani companies at Gulfood has grown from a

mere 90 square metres in 2008 to 1,000 square metres this year, reQlecting the emergence of a major exporting sector that is now challenging textiles as Pakistan’s main foreign exchange earner, with worldwide sales topping $5 billion last year. Data released by global macroeconomic research Qirm, BMI International, shows Pakistan remains a buoyant market for consumer sales, as well as food and beverage investment.

The firm is forecasting a 9.9 per cent per capita compound annual growth rate (CAGR) in food consumption until 2019, a 3.2 per cent per capita CAGR growth in domestic soft drink sales and a 9.5 per cent per capital CAGR in mass grocery retail sales. Rice remains Pakistan’s leading food export to the UAE, with TADP figures showing sales to the UAE growing elevenfold to top $207.8 million over the last two years.

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Friday, March 25, 2016

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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

effects of low oil prices

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ccording to newspaper reports, the country will not be able to achieve the annual growth target of 5.5 percent this year mainly because of decline in cotton exports. The international financial institutions have already projected the growth in the gross domestic product at around 4.5 percent despite the fact that oil prices have recorded a significant decline this fiscal year. The Pakistani economy often remained under pressure due to rising prices of oil and gas in the international market and has suffered energy crisis for years. However, at a time the low oil prices have brought boon for many emerging economies, Pakistan is feeling the heat of boon and bane at the same time for the same reasons. As a matter of fact, oil import is a major source of income for the government and low oil prices mean low income in the form of duties and taxes.

The low oil prices have also begun to slash the income of the oil producing countries. As most of the expatriate Pakistanis are working in the Middle Eastern countries, it will definitely affect the volume of remittances they send to the country.

The federal commerce minister has recently unfurled the salient features of the new trade policy, saying the policy will mainly focus on the provision of maximum incentives to the export sector and stressed the need for using modern technology in the value addition to make the Pakistani exports competitive in the international market. The government has allocated Rs 6 billion to encourage exports and introduce Pakistani brands in the international market. The government has already decided to introduce zero-rating regime for exports from the next financial year. According to an assessment, Pakistan’s exports to European countries have increased by 33 percent after securing GSP Plus status. However, a 20 percent decline in euro’s value against US dollar have neutralized the monetary gains while the global recession has slowed down the demand of exportable products from Pakistan.

According to experts, Pakistan is at a better place as compared to the countries in the region and has the potential to become hub of international trade and investment. What only needs to do is to streamline the banking system, improve electricity supply and flush out terrorism once for all. However, alongside making arrangement for energy generation, the country needs political stability.

need to revive gas pipeline project T

LAHORE

DR AftAB AfZAL

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he Iran-Pakistan Gas Pipeline project, which was once a media-hype like the China-Pakistan Economic Corridor is today, went to oblivion after sanctions were imposed on Iran by the so-called ‘international community’. However, the situation has changed now and Iran is ready to enter the world economic market with full might.

High hopes are pinned on the visit of Iran President Hassan Rouhani to Pakistan at the end of this month in which the matter of the gas pipeline project will also be taken up. The project was to be commissioned over a year’s ago,

but it could not go ahead according to the schedule in the wake of sanctions. According to experts, Pakistan can face penalties worth millions of dollars if it fails to start work on the project. A delay can also upset bilateral relations between the two countries. Iran also wants Pakistan to honour international commitments with regard to the pipeline project as it has already given in the form of LNG pipeline contract.

Apart from the gas pipeline project, there is a huge potential between the two countries to enhance trade, business and investment as Iran is free of the economic sanctions and opportunities are knocking the doors of the two countries. The State Bank of Pakistan has already

eased restrictions on trading through formal banking channels with Iranian companies. In the absence of a legal channel to enhance formal trade between the two countries, the corrupt elements on both sides of the border took full advantage of the situation. As a result, smuggling is rampant and Iranian goods are dumped in every city of the country. According to available Qigures, the volume of trade between the two countries is overwhelming in favour of Iran. Pakistan’s exports to Iran remained $185 million last year but exports were recorded at $837 million. There is no assessment of illegal trade between the two countries as the Customs Department of the country is chasing smugglers who are especially ac-

tive in Sindh and Balochistan. To curb illegal trade, the government will have to revise tariffs for the Iranian goods as well as encourage the local businessmen to Qind opportunities in the Iranian markets. Both the countries are connected through land routes and promotion of legal channels of trade will automatically give a severe blow to smuggling in the region. As Pakistan-Iran trade had been shrinking for the last Qive years, China emerged as major trading partner. In 2014, China imported goods worth $9.2 billion from Iran while its exports to Iran remained $12.5 billion. Ironically, the volume of trade between Iran and China increased when Tehran was passing through the ordeal of international sanctions.

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Jordan budget deficit of 2015 up by JD346m AMMAN: State budget deficit for the fiscal year of 2015 reached JD929 million, or 3.4 per cent of the projected size of the Kingdom’s economy, according to numbers released on Monday by the Finance Ministry. The deficit was higher by JD346 million than the JD583.5 million registered in 2014, mainly due to around JD350 million drop in foreign grants from JD1.236 billion in 2014 to around JD886.2 million received last year, the ministry’s figures indicated. In its report, the Finance Ministry said that deficit ratio to the gross domestic product (GDP) in 2014 was 2.3 per cent. The deficit before foreign grants would have been JD1.815 billion, 6.7 per cent of the projected GDP in 2015, while in 2014 it would have been JD1.820 billion, or 7.2 per cent of the GDP. Public revenues in 2015, including domestic and foreign grants, stood at around JD6.8 billion, compared to JD7.2 billion the year before, a drop of around JD471 million.

Lcci urges fBR to clear stuck-up refund claims he Lahore Chamber of Commerce and Industry (LCCI) has urged the Federal Board of Revenue (FBR) chairman to ensure early payment of stuck-up refund claims of the export-oriented sectors, which are facing severe hardships.

In a statement issued here, LCCI President Sheikh Muhammad Arshad, Senior Vice President Almas Hyder and Vice President Nasir Saeed said that at present when exports are stagnant and export-oriented industry in a dire need of resources, delay in payment of refund claims adding to their miseries.

They said the FBR should not hamper the growth of the most productive

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sectors by denying the exporters and manufacturers their right of refund of sales tax and income tax. They said that the delay in release of huge funds that runs into billions has triggered serious liquidity crunch for the exporters and manufacturers that might lead to closure of several industrial units. The LCCI office-bearers said the authorities concerned should take realistic view of the matter and allow the refunds of sales tax and Income Tax to exporters and Manufacturers at the earliest, who were facing severe hardships. They said that the process to get refunds is so lengthy and cumbersome that sometimes takes months for a manufacturer or an exporter to get his money refunded.

They said that exporters are already facing financial crunch due to devaluation of Euro while delay in refund of sales tax and income tax claims is adding fuel to the fire. They said that the businessmen were bearing huge financial cost on their own hard earned stuck-up money.—CB Report

Friday March 25, 2016

Chambers

chinese delegation, icci discuss investment prospects in cpec projects A

ISLAMABAD

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15 member Chinese delegation led by Hubei Province Vice Governor Gan Rongkun, visited Islamabad Chamber of Commerce and Industry (ICCI) to discuss prospects of investment and joint ventures in One Belt One Road and China-Pakistan Economic Corridor projects.

The delegation showed interest to explore investment opportunities in energy and infrastructure development projects including constructions of roads, airports and railway network in Pakistan.

They said both countries have good potential to enhance cooperation in auto manufacturing, steel, cement, power generation, services industry and many other areas. They said Pakistan now has political stability and growing economy and these factors were stimulating interest in Chinese investors to explore Pakistan for investment and joint ventures. They said China State Construction Corp has already participated in many construction projects in Pakistan including Centaraus,

new Islamabad airport and Chinese investors would construct a 392 KMs superhighway to connect Islamabad with other cities and industrial park in Pakistan. They said Chinese investment would create about 10,000 jobs in Pakistan.

They said Hubei Province of China has strong industrial base, great expertise in developing modern transportation systems with advanced technology and it wanted to develop close trade and industrial cooperation with Pakistan on win-

win basis. They also invited Pakistani businessmen to visit Hubei Province to explore business opportunities as it enjoyed strategic location in the center of China with huge business potential.

In his welcome address, ICCI President Atif Ikram Sheikh said that CPEC was considered a game changer for Pakistan and more Chinese investors should be encouraged to participate in this historic project for its timely completion. He said there was huge potential of investment in many

fcci president lauds islamic Banking system

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FAISALABAD

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resident Faisalabad Chamber of Commerce & Industry (FCCI) Ch. Muhammad Nawaz has said that Islamic Banking system is the most reliable and dependable system which can bridge this gap between ‘haves’ and havesnot’ in addition to catering to the entire banking needs of Muslim businessmen. He was addressing to an Awareness Road Show on Islamic Banking and Takaful organized by Al-Huda Centre of Islamic Banking and Takaful held in FCCI. He said that Riba is totally prohibited in Islam but a wide majority of Muslims are forced to indulge into it despite of their strong religious reservations. He said that Islamic banking is not a slogan to attract the business community or market their

services but it is a complete ideology to promote and encourage an egalitarian society based on the eternal Islamic principles of economics and equality. He quoted examples of various countries where more than 50 percent of businessmen have already switched over to the Islamic banking system. “It is a positive note that many non-Muslim countries are also adopting Islamic economic system only because of its economic and social beneQits to the society”, he added. He appreciated the management of Al-Huda for making painstaking efforts to educate the business community that there was a pure and complete chain of Islamic banking instruments based on Islamic principles.

Various speakers including Talat Mahmood, Umair Ali Sajid Manager Training Al-Huda and Muhammad Usman Ishaq BDM Allied Bank also delivered lectures on Riba and its

prohibition, Islamic Economics, Islamic Banking and Qinance industry in Pakistan, Madarabah and Musharaka etc in Pakistan.

Later Mufti Raees Ahmed Sharia Adviser Al-Huda-CIBC presented a memento of Al-Huda to Chaudhary Muhammad Nawaz President FCCI. Various banks dealing in Islamic banking system also set up their stalls during this road show.

Meanwhile, Textile is the backbone of national economy and on the speciQic directive of Prime Minister Nawaz Sharif, Ministry of Textile is working on a comprehensive strategy based on value addition to invigorate the entire cotton chain in order to double the textile exports, said Senior Joint Secretary of the Ministry of Textile Miss Robina Warsi. She was addressing the inaugural function of DICE Textile2016 Innovation Event at the National Textile University.

sectors of Pakistan’s economy including energy, infrastructure, mining, manufacturing, engineering, IT and others while CPEC was poised to open new horizons of investment opportunities between China and Pakistan. He said China has good expertise and advanced technology while Pakistan offered attractive incentives to foreign investors. He urged that Chinese investors should harvest the investment friendly policies of the current regime by enhancing investment and joint ventures in Pakistan.

Business community urges govt to declare water emergency he business community has urged the government to declare water emergency to save the country and future generations. United International Group Chairman Mian Shahid, in a statement, called for a proper strategy and improved water management backed by extra allocations to ensure survival of the economy.

He said that additional funds should be allocated for development of water resources otherwise our agriculture, livestock and industry will be damaged while country will become a desert. Mian Shahid said that almost ninety percent of water resources are being used for agriculture of which a sizeable quantity is lost due to outdated distribution system while 35 million acre foot water goes to the sea. —CB Report

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Canada’s $15 billion Saudi arms deal violates export rules, lawsuit argues Friday March 25, 2016

World

OTTAWA: Foreign Minister Stéphane Dion is acting illegally by issuing permits to allow the export of combat vehicles to Saudi Arabia, a lawsuit filed in Federal Court on Monday alleges.

Opponents of Canada’s $15-billion arms deal with the Saudis are taking the Trudeau government to court in an attempt to block shipments of the fighting vehicles to Riyadh.

A group led by Daniel Turp, a professor of international and constitutional law at the University of Montreal, filed a notice of application for judicial review on Monday.

The Liberals have repeatedly refused to cancel the contract, but Dr. Turp argues this isn’t about whether a deal should be abrogated.

uS cutoms seizes 172 pounds of marijuana PRESIDIO

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ustoms and Border Protection OfQice of Field Operations ofQicers working at the Presidio port of entry seized 172 pounds of marijuana Tuesday afternoon. The drugs were hidden in a false bed of a pick-up truck.

“CBP officers working at the Presidio port of entry utilize multiple resources in intercepting narcotics,” said Presidio Port Director John Deputy. “But it all begins with the officer and his interview skills to determine if a more thorough inspection is necessary.” The drug seizure was made at 6:30 p.m.

Tuesday when a 2002 Chevy Silverado driven by a male Mexican citizen made entry. CBP officers initiated an examination of the vehicle by first utilizing the Z-Portal x-ray system. Anomalies were observed

nepal, china ink transit, transport agreement epal and China on Monday signed important agreements including on transit and transport. The agreements have been signed during the high level talks held at the Great Hall of the People here in course of Prime Minister KP Sharma Oli’s official visit. Also today Prime Minister Oli and his Chinese counterpart Li Keqiang held talks at the Great Hall of the People. On the occasion, the two leaders discussed on further deepening the Nepal-China relations as well as on various aspects of Chinese possible cooperation to Nepal. In course of the high-level talks, various agreements have been signed and letters exchanged to that connection.

According to a press release issued by Pramod Dahal, the PM press advisor, the agreements signed today include the transit and transport agreement, the free trade agreement.—CB Report

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in the bed of the pick-up and then a narcotics detector dog alerted to the presence of narcotics. Drilling the bed of the truck extracted a green, leafy material which tested positive for marijuana. CBP officers removed a total of 82 bundles from the compartment.

The 39-year-old-driver, Julio Cesar Aros Camacho, was arrested and turned over to Homeland Security Investigations ICE agents to face federal prosecution for the failed smuggling attempt.

While anti-terrorism is the primary mission of U.S. Customs and Border Protection, the inspection process at the ports of entry associated with this mission results in impressive numbers of enforcement actions in all categories.

Meanwhile, El Centro Sector Border Patrol agents assigned to the Indio and El Centro stations arrested two people for attempted drug smuggling and arrested a previously deported gang member in three separate incidents the past few days.

indonesia’s Bnn seizes 11kg meth, 4,000 ecstasy pills

JAKARTA

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he National Narcotics Agency (BNN) has arrested six people suspected of being members of a drug smuggling network operating in North Suma-

pHLpost, Bureau of customs sign MoA to speed up parcel deliveries

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hilippine Postal Corporation (PHLPost) and the Bureau of Customs (BoC) have signed a memorandum of agreement (MoA) which they say will “hasten the procedure in handling of parcels and speed up the delivery of packages”. The MoA was signed by PHLPost Postmaster General (PMG) Joel Otarra and BoC Commissioner Bert Lina. In a statement issued today (21 March), PHLPost said that the MoA will lead to a “centralized examination and as-

sessment of duties, taxes and other charges on postal items which will be done in the Central Mail Exchange Center (CMEC) in Pasay City”. PHLPost added: “The MoA is a refinement of the 1973 Tariff and Customs Code of the Philippines (TCCP) and the amended MoA last September 2014 whereas PHLPost is deputized as a collecting agent of BoC for duties and taxes and centralized the examination and assessment of parcel entering the country.”—CB Report

tra and Aceh and conQiscated 11 kilograms of crystal methamphetamine and 4,000 ecstasy pills.

BNN deputy eradication division chairman Insp. Gen. Arman said on Monday that the crystal meth was seized from suspects, identiQied as AD and AG, who were arrested on Saturday at a supermarket on Jl. Sisingamangaraja, Medan. Arman said that based on the testimonies

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of the suspects, the police then nabbed another suspect, IM, who allegedly ordered the drugs. After arresting the three suspects, he said police then developed the case and nabbed the other three suspects, DI, RA and AB, at a hotel the following day and conQiscated the pills. Meanwhile, Customs at Soekarno-Hatta International Airport in Cengkareng, Banten, have thwarted the smuggling of thousands of protected baby turtles from Bekasi in West Java to Guangzhou, China. The turtles, consisting of 3,737 pignosed turtles and 883 snake-neck turtles, were put in boxes and then placed in the same container with boxes of clown Qish as camouQlage, Soekarno-Hatta’s customs law enforcement division head Yulianto said on Monday as quoted by wartakotalive.com. “We uncovered the smuggling at an export storehouse at the airport last Saturday,” he said, adding the authorities also apprehended Qive suspects.

igt grows revenue, profit in Q4

lot machine and lottery company International Game Technology reported its fourthquarter and full-year earnings on Thursday. The company was created by the $6.4 billion merger between Gtech, an Italian lottery operator, and IGT, a slot machine company.

Gtech acquired IGT in the merger, which wrapped up in April, and the combined company assumed the IGT name. On a more comparable “constant currency” basis that presents the combined results of both companies, revenue grew 5 percent year over year in the fourth quarter.

For the full year, revenue fell 4 per-

cent from 2014 using the same type of comparison. The company attributed the annual decline mainly to lower gaming product sales and service revenues. Earnings/loss: IGT reported net income of $73.5 million for the fourth quarter, compared to a $150.6 million net loss in the fourth quarter of 2014. For the full year, the company reported a net loss of $75.6 million, compared to net income of $86.2 million in 2014. Earnings/loss per share: The company reported earnings of 37 cents per share in the fourth quarter, compared to a loss of 87 cents per share in 2014.—CB Report

cocaine worth £2.6m seized at grangemouth docks

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LONDON

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ocaine with an estimated street value of about £2.6m has been seized at Grangemouth Docks, Border Force officers have said. Officers discovered 41kg of the Class A drug on Wednesday following a search of a refrigerated

container that had arrived at the port from Belgium. Head of Border Force Scotland, Murdo MacMillan, said it had been “extremely intricate concealment”. He said the drugs were hidden within the housings of an evaporator fan.

Meanwhile, Two people aged in their 30s have been arrested on suspicion of a number of drugs and money laundering offences after

police seized £400,000 of suspected cannabis. Police seized £200,000 worth of suspected cannabis and arrested the man after a car was stopped on the M2 around midday. Properties were searched at Shore Road, Belfast and in Newtownards as part of the investigation. A further £200k worth of the drug was seized separately in Antrim. Both seizures are being in-

vestigated to establish the existence of any links.

A man and woman have been arrested. Detective Inspector Andy Dunlop from Reactive and Organised Crime Branch said: “This was initially great work by our district colleagues and officers from our Operational Support Department who reacted quickly to information received from the community.

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Georgia Ports Authority officer, vehicle fall into Savannah River WASHINGTON: A Georgia Ports Authority police officer and police vehicle went into the Savannah River at Georgia Ports Authority’s Ocean Terminal just after 2 p.m. Monday, Ports Authority Spokesman Robert Morris said. The officer was able to escape the river, though the means of the escape are not known at this time, Morris said. The officer was examined by emergency medical services at the scene and was transported to Candler Hospital. Morris said the officer was in good condition and is not expected to have sustaned any serious injuries. Savannah-Chatham police’s Dive team and Savannah Fire’s Marine unit were initially called to the scene, but the officer was already out of the water by the time the units responded.

port Manatee welcomes $10m state funding increase ore money to build warehouses, docks and other infrastructure at Florida ports would be available in the coming year through a funding increase approved by the state Legislature.

On Friday, the Legislature approved a measure that will increase the annual minimum statutory amount of Florida Seaport Transportation and Economic Development, or FSTED, funding from $15 million to $25 million each fiscal year. The money is set aside specifically for projects at Florida’s 15 publicly owned ports. Legislators delivered the measure on a 39-1 vote in the Senate and a 117-2 vote in the House. Individual ports and the Florida Ports Council had been lobbying for several years to have the funding amount increased.

The funding request now awaits Gov. Rick Scott’s signature. Carlos Buqueras, executive director of Port Manatee, said FSTED money is an important tool

Ports & Shipping

private port operators need time to prepare for bigger job

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LONDON

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P in improving his port’s facilities. The port has two current projects on the books that have been allocated $4.8 million in FSTED funds since 2011. That money is matched at a ratio of at least 50-50 by the port. FSTED funds applied to ship berth construction projects must be matched at a 75 percent level locally. Buqueras said the port and its lobbyists have been pushing for the increase for three years. As a project funding vehicle, he said, FSTED funds encourage private funding for infrastructure projects, such as a new $24.6 million cold storage warehouse being planned at Port Manatee. Stevedoring company Logistech has pledged half of that amount. At present, $1.43 million in FSTED money has come to the port for the project.—CB Report

rivate port operators have lauded the government’s recent decision to extend the time for them to prepare for a concession for operating bigger terminals, previously only open to stateowned port operators.

The Transportation Ministry expected to grant a concession to pri-

vate port operators to run public terminals starting Feb. 29, but the ministry delayed the deadline to June pending preparations from the operators, which are currently only allowed to run special terminals and dedicated terminals, or public terminals on yearly permits.

“We are ready to sign the concession, but we need time to calculate the amount of time needed for the concession,” Indonesian Port Operators Association (ABUPI) chairman Aulia Febrial Fatwa said Monday.

Aulia was optimistic that private

port operators would be able to complete preparations for the concession by June, adding that “the February deadline was a rush”.

Aulia said private operators saw beneQits in running bigger terminals rather than special or dedicated ones. Calculations are needed to estimate the proQit and investment for assets during the concession, as Ministerial Regulation No. 5/2015 stipulates that operators must return Qixed assets or allow the ministry to buy movable assets by the end of the concession.

Friday March 25, 2016

Salalah port signs iran cooperation agreement he Port of Salalah, the biggest port in Oman, has signed a Memorandum of Understanding with the Iranian ports of Shahid Rajaee and Chabahar, through the Port and Maritime Authority (PMO) of the Islamic Republic of Iran. This landmark agreement envisages close cooperation in a diverse range of activities and aims to facilitate growth in shipping, trade and commerce for both nations.

“With multiple main line services already providing a comprehensive and reliable global connectivity via Salalah, and strong interest shown by all shipping lines in catering to the growing Iranian economy, this pioneering agreement will act as a facilitator and a platform for the three ports to work together to provide best in class logistics and supply chain solutions for multiple stakeholders,” said Ahmed Akaak, deputy chief executive of the Port of Salalah. Under the terms of the MOU, the three ports will develop joint marketing strategies, work together to enhance trade opportunities and promote an all water route between Bandar Abbas, Chahbahar and Salalah. The agreement also provides for the Iranian ports to take advantage of the knowledge and experience of Port of Salalah to help modernise and improve their infrastructure as well as offering support and expertise in training the Iranian workforce.—CB Report

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india pc shipments up 10.6% in Q4 of 2015

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NEW DELHI

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C shipments in India totaled nearly 2.6 million units in the fourth quarter of 2015, a 10.6% increase over the fourth quarter of 2014, according to Gartner. “Consumers accounted for 40% of total PC sales in the fourth quarter of 2015, down from 52% in the fourth quarter of 2014,” said Vishal Tripathi, research director at Gartner. ” The PC market in India is facing some chal-

lenging market dynamics .The enterprise segment might witness some growth going forward due to government and education projects, however we do not foresee signiQicant growth in the PC market in India.”

White boxes (including parallel imports), which accounted for 32% of the overall desktop market, declined 6%in the fourth quarter of 2015 compared to the same period in 2014. In the fourth quarter, mobile PCs grew by 27% year-on-year primarily due to state government orders. Lenovo moved into the number one position

in PC shipments in India in the fourth quarter of 2015 due to the state government order execution in the quarter which helped Lenovo experience the largest increase in market share.

Meanwhile, Buoyed by government purchases, tablet PC shipment in India grew 13 per cent to reach 4.4 million in 2015, with low-cost device maker Datawind and Pantel emerging as top players in the segment. “4.4 million tablet PCs were shipped in India in 2015, registering a growth of 13 per cent compared with 2014,” CyberMedia Research said in its India

Annual Tablet PC Market Review report. The top Qive tablet PC brands corner 66 per cent of the market share. A total of 66 brands, according to the report, shipped tablets in 2015 and towards the end of year, only 18 were selling these devices, it said. “The marginal rise in tablet performance could be attributed to a few government deals. However, with rising demand for phablets/smartphones, the challenge for the industry would be to make it more exciting and bring in features attracting the consumer segment.

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Quetta Customs Intelligence impounds 18,000 liters Iranian petrol KARACHI: The Customs Intelligence and Investigation has impounded an oil tanker filled with smuggled Iranian petrol worth Rs 900,000 in Quetta.

Following information regarding the smuggling of Iranian petrol, the Customs Intelligence team under the supervision of deputy collector conducted raid and intercepted the oil tanker near Khorgi and recovered 18,000 liters of petrol.

The team asked the driver to show documents regarding the legal import of the petrol but he failed to do the same; therefore, the customs officials arrested the accused person besides confiscating the petrol along with oil tanker.

Friday, March 25, 2016

CUSTOMS BULLETIN

Modern customs complex at torkham to enhance trade with Afghanistan, cARs PESHAWAR M HAYAt

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he government is constructing a mega state-of-the-art Border Customs Complex at Torkham to enhance regional trade with Afghanistan and Central Asian Republics (CARs).

“The complex is the Qirst of its kind in the country, which will make border crossing systematic, fully computerized and augment the trade volume on the historic route,” said Collector Customs, Peshawar Qurban Ali Khan.

The state-of-the-art border Customs Complex would improve facilities related to the clearance of goods laden trucks crossing the border to Afghanistan and CARs, he added. The complex covering 700 kanals land would house customs and immigration ofQices, two-way customs and immigration terminals, checking and scanning plazas for pedestrians, passenger and cargo vehicles with other infrastructure,” Qurban Ali said. “Border Customs Complex is a step towards achievement of goals set under CAREC (Central Asia Regional Economic Cooperation), a partnership

of 10 countries and six multilateral development partners working to promote development through co-

operation, leading to accelerated economic growth and poverty reduction,” he said. The Asian Devel-

opment Bank (ADB) was providing 300 million dollars loan for execution of the project on soft term ba-

sis to Pakistan while National Logistic Cell (NLC) was implementing the project.

Appraisement-east to move SHc against M/s SngpL KARACHI

AftAB cHAnnA

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he Model Customs Collectorate AppraisementEast is going to file an appeal before the Sindh High Court (SHC) against M/s Sui Northern Gas Pipelines Limited for allegedly evading Rs 388.786 million duty and taxes. During the scrutiny of the import data of Sui Northern Gas Pipelines Lim-

ited, the Post Clearance Audit (PCA) observed that the company imported various consignments of domestic gas meters and cleared the same from Appraisement-West, AppraisementEast and Port Qasim, through its clearing agents namely as M/s Muhammad Amin Clearing and Forwarding Agents and M/S Urooj Agencies availing inadmissible exemption/concession under Clause (2) and Clause (3) of SRO. 678(I)/2004 dated August 7, 2004. The clauses of the above said SRO clearly stipulate that only such goods shall be entitled

to the exemption by a company other than an E&P company, for its own use or its contractors, sub-contractors and service companies for its projects of oil and gas exploration and production, refinery, oil and gas pipeline, liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG) petroleum terminals, energy conservation, environment and safety controls. Further, without prejudice to above, the imported goods also fall within the ambit of C.G.O No. 11/2007 dated August 28, 2007, being lo-

cally manufactured. The PCA in its report stated that the Sui Northern Gas Pipelines Limited by availing inadmissible exemption/concession under SRO. 678(I)/2004 evaded/short paid custom duty amounting to Rs 306.505 million, sales tax Rs 52.163 million, additional sales tax Rs 9.195 million and income tax Rs 20.922 million, while the total amount is Rs 388.786 million. After the PCA issued contravention report to the importer M/s Sui Northern Gas Pipelines Limited, the importer approached the Customs Appel-

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late Tribunal that gave decision in the favor of importer. The Appraisement-East would challenge the decision in the SHC for review. Meanwhile, The Sindh High Court directed the customs authorities to release the consignment of cold roll sheets of the petitioner after payment of duties and taxes, as leviable and upon securing Provisional AntiDumping Duty by the way of pay order with the Nazir of the SHC. A two-member bench headed by Chief Justice Sajjad Ali Shah also directed to the respondeds to decide the issue with 30 days.