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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

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Karachi, Fri March 2, 2018

ISLAMABAD

TARIQ DERYA

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ollector ZulSiqar Ali Chaudhary visited the newlyconstructed building of the Islamabad airport on Wednesday and held an in-house meeting of the Customs ofSicials at Customs House . The main objective of meeting, chaired by the collector, was to chalk out a programme for operational readiness and nominate the focal persons to keep

an active follow up with the stakeholders. Collector ZulSiqar Ali Chaudhary visited the airport to gauge out operational readiness of all the facilities falling under Customs controls and enforcement. The visit was planned to take up all pending matters thenand-there with the Civil Aviation Authority and energizing efforts in wake of the recent deadline set for inauguration of the airport. The collector was accompanied by a team of Air Freight Unit’s (AFU), comprising additional collectors, assistant collectors,

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superintendents, inspectors, support staff and the counterparts from the CAA. The Collector of Customs was briefed on the status of different airport facilities and systems. He also examined facilities at Passenger Terminal Building and Customs Cargo Complex. ZulSiqar Ali Chaudhary appreciated the modern technology introduced by CAA in the instant undertaking, both with regards to advance controls and passenger facilitation. “Complete pre-scanning of arriving baggage and Baggage Handling System (BHS) at departures shall empower Customs ofSicers to exhaust their functions more efSiciently and at the same time it shall cause less obstruction to the conSide passengers”, said Collector of Customs.

AFU Islamabad displays 15% of CD increase during half a month

Customs Export recovers Rs 11.50m from defaulter companies

Collector Faiz distributes workload among assistant collectors

DG Valuation to revise customs values of metallic yarn on March 30

Quetta Customs I&I confiscates Iranian diesel worth Rs2 million

AFU Islamabad recorded 15% growth of CD in a revenue collection against | SEE PAGE 02 |

Customs Export has recovered evaded amount of taxes and duties of Rs 11.50 m | SEE PAGE 03 |

Collector Faiz has issued a notification bearing number: C. No. 01-HRD/Ext/ | SEE PAGE 04 |

DG Valuation has decided to revise the ValuationRulingNo:796/2016onMarch30 | SEE PAGE 09 |

Customs I&I successfully confiscated Iranian diesel worth Rs 2 million | SEE PAGE 16 |

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Customs posts 127% hike of ST in seven months and three weeks Friday, March 2, 2018

ISLAMABAD: The MCC Islamabad demonstrated 127% growth in revenue collection of Sales Tax (ST) while it showed 76% increase under all the heads in ﬁrst seven months and three weeks of February FY17-18 (July to 21 February) against an assigned proportional revenue target. According to details given by Zulﬁqar Ali Chaudhry, Collector Model Customs Collectorate (MCC) Islamabad, that the collectorate posted Rs 64% increase in revenue collection against an allocated proportional revenue target under all the heads while it displayed 28% growth of Customs Duty (CD), 33% as Income tax (IT) and 60% increase of Federal Excise.

Islamabad

AFU Islamabad displays 15% of CD increase during half a month

ISLAMABAD

CUSTOMS BULLETIN REPORT

TARIQ DERYA

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he Customs Anti-Smuggling Organization took into possession five NDP vehciles during first 20 days of February FY17-18 against the same corresponding period of FY16-17. According to details explained by the newly transferred Saiqa Abass, Assistant Collector, Anti-Smuggling Organization (ASO) Islamabad, that, during above said period, the ASO showed better performance against the identical previous period. During first 20 days of February, the ASO Islamabad impounded 10 NonDuty-Paid (NDP) vehicles worth Rs13.1million while did five NDPs during the same corresponding period valued at Rs2.94million. During first 20 days of FY17-18, the ASO made 20 seizures of various smuggling goods priced at Rs7.24million against 39 seizures of smuggling items worth Rs17.19million during the identical period. The ASO took into possession nine offending (vehicles used for carrying smuggling goods) vehicles valued at Rs8.8million during said period while it did 12 offending loaders priced at Rs9.8million during the same previous period.

he Customs Air Freight Unit Islamabad recorded 15% growth of Customs Duty in a revenue collection against an allocated proportional revenue target for the Sirst half of February Fiscal Year 2017-18. According to details given by Nisar Ahmad Phularwal, Additional Deputy Collector Air Freight Unit (AFU) Islamabad, that, during above said period, the AFU received Rs18.42million extra revenue under the head of CD against an earmarked proportional revenue target. The AFU generated Rs137.48million revenue of CD against an assigned proportional revenue collection target of Rs119.06million. The additional collector told Customs Today that, during Sirst half of February FY17-18, the AFU showed 80% increase against the same period of corresponding FY16-17. It was told that the AFU earned Rs61.13million of extra revenue during the Sirst half of February FY17-18 against the same previous period of FY16-17. The AFU collected Rs76.35million as CD during 1st to 15th of February FY16-17. Nisar informed CT that the AFU was allocated a revenue collection target of Rs222.24million of CD for the entire month of February FY1718 whereas it earned Rs7.26million

Anti-Smuggling Organization Islamabad impounds five NDP loaders

under the same head on the day of 15th of February FY17-18. It is expected that the AFU will not only meet the earmarked revenue collection target for the month of February FY17-18 but will also surpass it with the handsome amount of Customs Duty. Meanwhile, The Model Customs Collectorate (MCC) Islamabad showed 200% increase by paying off rebate refunds under the head

of Customs Duty during first two weeks of February FY17-18 against the same period of corresponding FY2016-17. According to details given by official sources of the MCC Islamabad that the MCC reimbursed Rs5million of rebate refunds during first two weeks of previous February FY16-17 while it did Rs15million rebates during first two weeks of February FY1718. Since the collectorate believes

in the facilitation of exporters so it tried to accommodate meximum numbers of exporters by giveing more rebate refunds of CD to local manufactures so that they can continue their business activities smoothly. The sources told Customs Today that the collectorate posted 40% increase in rebates against an assigned proportional target during first two weeks of February FY17-18.

IHC seeks record of case filed by M/s Lakson Tobacco against FBR

ISLAMABAD

NAEEM ULLAH TARIQ www.customsbulletin.com

he Islamabad High Court (IHC) directed parties to submit record in customs cases Siled by M/s Lakson Tobacco Corporation Limited against ofSice of the Federal Board of Revenue (FBR). A division bench of the IHC comprising Justice Athar Minallah and Justice Miangul Hassan Aurangzeb heard the case. During previous hearing the bench

had relisted the case for hearing along with other cases. M/s Lakson Tobacco Corporation Limited had named additional collector customs in its petition against FBR. Meanwhile another bench dated in ofSice hearing of M/s Hasas Engineering and Construction Company Private Limited’s case. The appellant had challenged the act of recovery of said amount by commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal

had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty. M/s Hasas Engineering and Construction Company Private Limited had prayed the court that FBR ofSice had issued a recovery notice to the company which did not hold lawful grounds. The appellant had prayed the court to declare the act as illegal and without any lawful authority and an interim stay may be granted against recovery proceedings.

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SHC issues notices to Customs, others in RD cases KARACHI: The Sindh High Court has issued notices to Pakistan Customs and others in a number of identical petitions pertaining to regulatory duty and adjourned hearing till March 13. A SHC’s division bench heard a petition ﬁled by All Pakistan Tiles Association and Johnson Trading. A lawyer from Franklin Law Associates and Ms Dil Khuram Shaheen advocate for the petitioners challenged the imposition of regulatory duty. They pointed out that the bench has decided a number of cases of identical nature through its judgement dated February 7. They prayed for implementation of the said judgement also in these petitions.

PCA detects tax evasion of by M/s Wajih Sanitary Hyderabad

Friday March 2, 2018

Karachi

Customs Export recovers Rs 11.50m from defaulter companies

KARACHI

M B RANA

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he Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 9.58 million allegedly by M/s Wajih Sanitary Hyderabad, it is learnt here. Oﬃcial sources told Customs Today that M/s Wajih Sanitary Hyderabad imported a consignment of imported sanitary items under the PCT Heading 5847.2508 and got it cleared from Port Qasim Karachi vide GDs on October 22, 2017 by paying customs duty at 8 percent after claiming a benefit of SRO 568/2007 by the hand of Examiner Imran A Khan. However, the subject item is correctly classifiable under the PCT 2548.2509 attracting customs duty at 12 percent.

Miftah says ST refund process to start during current month KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

dviser to Prime Minister on Finance, Revenue and Economic Aﬀairs, Miftah Ismail, has said sales tax refund process will be started this month as the working for the purpose has been completed. Speaking at a dinner reception hosted by United Memon Jamat of Pakistan here, he said the country’s economy is progressing in the right direction due to the positive steps by the present government. Miftah Ismail emphasised that higher Gross Domestic Product (GDP) growth is needed for the eradication of poverty. He said the people of Karachi have tested all the political parties, now they should give a chance to the Pakistan Muslim League-Nawaz. He added that he would contest the general election from NA-252 Karachi.

KARACHI

WAQAR AHMED ANSARI www.customsbulletin.com

he Customs Export has recovered evaded amount of taxes and duties of Rs 11.50 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Safdar Enterprises availed undue beneSits and concessions after importing different consignments by misusing the SRO 566 through Examiner Usman Ali on 16th 2017. Sources said that the company was allegedly involved in the tax evasion of Rs 6 million. After detecting the tax evasion, the Customs Export served on it a Sinal notice on January 18, 2018 to deposit the evaded amount within 14 days, but defaulter company willfully avoided to clear the dues. After receiving the notice, the management of M/s Safdar Enterprises deposited the evaded amount in the ofSicial account of the Customs Export on19th of February. On the other hand, the management of the M/s Waseem Watches also cleared Rs 5.50 million of taxes and duties. Sources told the correspondent that M/s Waseem Watches also availed undue beneSits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities issued to it a Sinal notice

on January 12, 2018. After receiving the notice, the management of the M/s Waseem Watches deposited the evaded amount of taxes into the ofSicial account on Monday. Meanwhile, The Customs Export has recovered evaded amount of taxes and duties of Rs9.86million from defaulter companies which had been earlier issued with notices to pay the outstanding dues. Sources told Customs Today that, during scrutiny of the import data,

Sources told that the company was allegedly involved in the tax evasion of Rs 6 million. After detecting the tax evasion, the Customs Export served on it a final notice on January 18, 2018 to deposit the evaded amount within 14 days, but defaulter company willfully avoided to clear the dues

SRB restores ST registration of 12 taxpayers

KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

Sindh Revenue Board (SRB) has restored sales tax registration of 12 taxpayers, who were suspended for non-compliance in paying outstanding liabilities and nonSiling of monthly statement. In a communication sent to Pakistan Revenue Automation Pvt Limited (PRAL), the SRB said that such taxpayers have paid amount of

penalty and agreed to pay outstanding and Siling their sales tax returns on restoration of registration. The SRB suspended registration of 4,338 taxpayers on July 25, 2017 for non-compliance of Sindh Sales Tax on Services Act, 2011. The SRB asked the PRAL the registration of 12 taxpayers as listed below may be restored with immediate effect so that these taxpayers could able to Sile their due Sindh Sales Tax returns and pay the due amount of Sindh sales tax in the normal course/

The companies include 01. M/s. Hasas Construction Private Limited, 02. M/s. Shahid Gul & Company, 03. M/s. Sakhani Enterprises, 04. M/s. Taj Muhammad Shaikh Enterprises, 05. M/s. Aftab & Brothers, 06. M/s. Ahmed & Co., 07. M/s Pearl Engineering Trading Co., 08. M/s. Ali Sheer Government Contractor, 09. M/s. New Hydery Construction Company Govt Contractor, 10. M/s Sohra Khan Government Contractor, 11. M/s. Neotech Private Limited and 12. M/s. Aftab & Brothers Associates.

it was revealed that M/s Reliance and Co availed undue benefits and concessions by importing different consignments after misusing the SRO 562 through Examiner Qayyum Shah. Sources told Customs Today that the company was allegedly involved in tax evasion of Rs7.28million. After detecting the tax evasion, the Customs Export served on it a final notice on January , 2018 to deposit the evaded amount within 14 days.

Pak rupee witnesses mix trend against dollar he greenback witnessed mix trend against the US dollar both in interbank and open market. As per the local money market, the dollar shed five paisas in open currency market for buying at Rs111.75 for selling at 112.05. The dollar gained 10 paisas in interbank to close at Rs 110.40 for buying and Rs 110.60 for selling.

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Foreign exchange rates Friday March 2, 2018

Lahore

KARACHI: The Exchange Rates Committee of Financial Markets Association of Pakistan issued the following exchange rates bulletin. LIBOR FOR CALCULATING INTEREST ON SPECIAL US DOLLAR BONDS VIDE SBP F.E. CIRCULAR NO.42 & 21.07.98 & 04.08.98 RESPECTIVELY. LIBOR VALUE 6 MONTHS US DOLLAR 2.2011 28.02.2018 CONVERSION RATES FOR 28TH FEBRUARY 2018 FOR FOREIGN CURRENCY FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) SBP SETTLEMENT VALUE DATE MARCH 02, 2018.

Appellate Tribunal Collector Faiz distributes workload remands back appeal in among assistant collectors smuggled food items case LAHORE

LAHORE

SAJID NAWAZ

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ustoms Appellate Tribunal has remanded back appeal in seized smuggled foreign origin food items. Appeal was Siled by the Collector of Customs, AntiSmuggling Organization, Faisalabad versus Muhammad Nadeem, a resident of Quetta. Muhammad Shabbir Gujjar, member Judicial, heard the arguments from both sides, examined record and passed the judgment to set aside the appeal Siled by the appellant, also remanded back case to adjudication authority for fresh speaking order after providing opportunities to both parties within thirty days. As per brief history, the case was by the Customs Anti

PMEX index closes at 3,275 points he Pakistan Mercantile Exchange Limited (PMEX)’s commodity index on Tuesday closed at 3,275 points, with the traded value of metals, energy and COTS/FX recorded at Rs.7.140 billion. The number of lots traded was 10,915, said a PMEX release here on Wednesday. (Data is compiled and release after 24 hours.) The major business was contributed by gold amounting to Rs.2.619 billion, followed by currencies through COTS Rs.1.125 billion, NSDQ100 Rs. 1.053 billion, silver Rs.847.691 million, DJ Rs.521.874 million, WTI crude oil Rs.482.479 million, platinum Rs.351.952 million, SP500 Rs.67.347 million, copper Rs.38.588 million, natural gas Rs.24.850 million and Brent crude oil Rs.7.916 million. In agricultural commodities, 2 lots of cotton amounting to Rs.0.900 million were traded. –CB Report

Smuggling origination in which smuggled foreign origin almonds Iranian 10980 kilogram and Almonds Nuts Iranian 3800 kilograms was seized where goods were transported from Quetta to Faisalabad. On demand, driver failed to produce documents regarding the lawful imports of goods and same were seized under the relevant section of Customs Act 1969. Adjudication authority culminated hearings, passed the impugned order and vacated the show cause. Being aggrieved from the order appellant filed the appeal before the Customs Appellate Tribunal. The appellant mentioned in the appeal that adjudication authority has passed the order without hearing of parties. Appellant also produce the all documents showing the illegality of seized items and appeal to set aside the order passed by the earliest authority.

M HAYAT

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ollectorate of Customs Preventive Collector Faiz Ahmad has issued a notiSication bearing number: C. No. 01HRD/Ext/TP/Exec/88/2016/96/14 9. According to the notiSication Assistant Collector Omer Latif who is currently performing his duties at Land Freight Unit Wagha, Railway Station will also perform his duties at Air Freight Unit (AFU) of Allama Iqbal International Airport. According to the same notiSication Assistant Collector Salman Javaid is also directed to perform his duties at Land Freight Unit (LFU) and Railway Station with immediate effect and until further orders. Sources told Customs Today that Collector Fiaz Ahmad is going issue more notifications in near fu-

Raw cotton exports increase 48.72% in 7 months

aw cotton exports form the country during first seven months of current financial year grew by 48.72 percent as compared the corresponding period of last financial year. During the period from July-January, 2017-18, about 33,306 metric tons of raw cotton worth of US$ 54.995 million exported as compared with the exports of 21,352 metric tons valuing US$ 36.951 million of same period last year. According the data of Pakistan Bureau

of Statistics, 284,799 metric tons of cotton yarn valuing US$ 739.267 million exported during the period under review as against the exports of 265,470 metric tons worth US$ 749.932 million of same period last year, the data reveled. The country earned US$ 1.249 billion by exporting about 1,159,516 thousand square meters cotton cloth, which was recorded at US$ 1.269 billion and 1,213,797 thousand square meters in the corresponding period of last year, it added. –CB Report

ture to enhance the performance of Collectorate of Customs Preventive. More officials will be assigned different tasks. Sources told that Collector is quite optimistic that

FTO remands back tax refund appeal he Federal Tax Ombudsman (FTO) remanded back a tax refund appeal in a case Siled by Proprietor Tauseef Brothers against the Regional Tax OfSice (RTO-II) Lahore and adjourned it until the next date of hearing. FTO Advisor Mian Munawar Ghafoor heard the case. The counsel for the appellant argued that the RTO had failed to release the sales tax refund to the appellant since two years. He said the RTO-II has been collecting excessive tax from the company for the last two years. Although the petitioner ap-

FBR announces Tax Advisory Committee

LAHORE

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he Federal Board of Revenue (FBR) Tax OfSice has announced members of Tax Advisory Committee for LTU, CRTO, RTO-II, Lahore to develop a more progressive tax structure with strong enforcement.

In pursuance of directions contained in FBR C No 6(61) (IR-Operations)/2016 dated February 13,2018, Tax Advisory Committee (TAC) in respect of LTU, CREO CRTO, Lahore and RTO-II, Lahore, will work under the chairmanship of S Nadeem Hussain Rizvi, Chief Commissioner Inland Revenue. The other 21 members would be consisted of people from business, trade and FBR Lahore. The members

apart from enhancement in performance the Collectorate will achieve revenue collection target assigned by Federal Board of Revenue for current Fiscal Year.

included Lahore Corporate Regional Tax OfSicer Chairman Asim Ahmad, Lahore Large Taxpayer Unit, Chief Commissioner Inland Revenue Asim Majid Khan, and Lahore Regional Tax OfSicer-II Chief Commissioner Inland Revenue. People from trade and industries who were picked up from business, legal fraternity and other walks of life included Lahore Chamber of Commerce LCCI President Malik Tahir

proached the ofSicials concerned several times for the release of refunds yet the RTO ofSicials failed to clear the refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking intervention in this case. The counsel appealed to the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said that delay in release of refund puts a burden on the taxpayer therefore RTO-II should make an audit of the cases and release the extra amount collected from the taxpayer. –CB Report

Javaid as member, Zafar Mehmood as member, Maqsood Ahmad Butt, Qamar-uz-Zaman, President Lahore Tax Bar Association as member, Abdul Waheed, General Secretary, Lahore Tax Bar Association as member, Shahbaz Siddiqui, Vice President, Lahore Tax Bar Association as member, Mansoor Iqbal, Chairman Pakistan Tanners’ Association, Northern zone as member, S Anjum Zafar, Executive Member.

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ISLAMABAD

M FAIZAN

www.customstoday.com

ederal Board of Revenue (FBR) has provisionally collected Rs2.26 trillion during the Sirst eight months of the current Siscal year (2017-18) with 17.7 per cent growth, but signiSicantly short of the target. From July through February of this Siscal year, the FBR recorded a provisional net revenue collection of over Rs2.259 trillion as against Rs1.920 trillion during the same period of the previous Siscal year, according to an ofSicial handout. The FBR said that the provisional collection excluded book adjustments. “The FBR has recorded an increase of around 17.65% or Rs339 billion in collection over the amount during the corresponding period last Siscal year,” it added. Provisional collection for February 2018 was Rs263 billion, excluding collection on account

of book adjustments, as against Rs227.5 billion during February 2017. Monthly collection was up by 15.6% or Rs35.5 billion. The FBR said that the amount of monthly collection was encouraging. The collection received in treasuries of remote areas may further increase revenue Sigures, it added. The FBR said that the government has Sixed the full-year target with an annual increase of around 19%. However, the FBR’s collection has fallen below 19% for the second successive month despite the tax machinery collecting 25.5% general sales tax (GST) rate on high-speed diesel – way higher than the 17% standard GST rate. The government also increased the price of petroleum products for the seventh consecutive month. The FBR was given Rs4.013-trillion tax collection target by the parliament that requires 19.2% growth rate. The Board had set a target of Rs2.358 trillion for the Sirst eight months. The shortfall in tax collection during the Sirst eight months has widened to Rs99 billion.

The latest results have reduced hopes of achieving the annual tax collection and Siscal deSicit targets. The Rs2.263-trillion collection in the Sirst eight months was 56.4% of the annual target. The FBR was required to achieve at least 58.8% of the annual target in the Sirst eight months, according to the Ministry of Finance ofSicials. According to FBR’s estimates, about 5.2% devaluation of rupee against the US dollar would give it an extra beneSit of minimum Rs55 billion. The FBR is also struggling to improve the narrow tax base, as despite numerous extensions, the number of income tax return Silers remained at 1.238 million persons by February 15. The number of income tax return Silers from all major sectors of the economy has actually shrunk in the last Sive years and it is only the salaried class that is proving to be a saving grace for the government. Total income tax return Silers stood at 1.391 million Silers in tax year 2016. This shows that about 152,789 people have skipped from the FBR’s already narrow tax base.

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Friday, March 2, 2018

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EDITORIAL

Poor ranking of Pakistan in CPI

ransparency International has ranked Pakistan at 117th on the global Corruption Perceptions Index 2017 out of 180 nations. The worldwide ranking is based on the level of perceived public sector corruption in Pakistan and the governmentâ&#x20AC;&#x2122;s failure to curb financial misconduct. The country showed no improvement in its ranking of 2016 when it was placed at 116th out of 176 countries. Experts opine the score was 32 in 2016 and in fact the level dropped down from 116 to 117 on the global list. The score is still 32. The international non-government organization index ranks the countries and territories by their perceived levels of public sector corruption and uses a scale from zero to 100, where zero indicates high level of corruption and 100 is clean. The agency believes most of the countries are not improving their ranks on the Corruption Perception Index or moving too slow to curb the menace. It says the countries with lowest press protections and the non-governmental organizations also tend to have the worst rates of corruption. It also observed various countries have failed to make any progress to streamline their financial aďŹ&#x20AC;airs. According to the agency, New Zealand and Denmark ranked the highest by obtaining the scores of 89 and 88, respectively while Syria stood at 14, South Sudan 12 and Somalia 9. The agency also reveals that more than two-thirds of countries have scored below 50 with an average score of 43. These countries could not improve their ranking despite several efforts. The Western Europe has emerged as the best performing region with an average score of 66 whereas Sub-Saharan Africa bagged an average score 32 and Eastern Europe and Central Asia 34. The world still regards corruption as curse, but in Pakistanâ&#x20AC;&#x2122;s case any effort to curb corruption is labeled as political victimization by the suspects. The recent cases, in which senior leaders of various political parties are struggling to absolve themselves of corruption charges by getting clean chits form the courts. However, the situation has drastically changes. The country took a loan of $45 billion in four and half years, but where the money has gone is unclear. There is no ledger in any government department with details of expenditures it has done during the period in question.

Investment in real estate sector T

LAHORE

DR AFTAB AFZAL

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he government has been apparently fighting tooth to nail for the last few years to discourage investment in the real estate sector. According to official circles, involvement of corrupt money in the real estate sector has not only provided a safe passage to the crook and dishonest elements to avoid the law but also disturbed the balance of property prices in the market. However, the policymakers always find a novel solution to any problem in this country which still has very poor ranking in the global

corruption perception index. The real estate and construction sectors are the engine of growth for any economy in the world, but these sectors are snubbed to stop investment in it. As a result, people are now investing in offshore companies and real estate sectors of the United Arab Emirates and Britain. Imposition of withholding tax on the banking transactions as well as the condition to reveal sources of income has added to the miseries of not only the property sector, but also the construction industry. As a result, the real estate sector has failed to use its potentials to promote investment, push in-

dustrial growth and generate employment. At least 250 industries are directly or indirectly associated with the construction industry and anything disturbing the property business will adversely affect the whole economy. However, with little knowledge and myopic vision, the government policymakers have always caused losses to the economy rather than bringing any good to it. At least 40,000 real estate dealers were working in branded housing societies across the country, most of which have now closed their offices or shifted their businesses. Many others have not only left the

sector, but also the country. Industries, including cement, brick, aluminum and dozens of others are struggling to stay in the running mod. The real estate sector is the economy of Pakistan and the government should work out a plan to lower the tax ratio to create business-friendly and investment-friendly environment in the country. The government is in the habit of launching amnesty schemes, allowing the tax evaders and others to whiten their black money. Instead, policies should be introduced to attract investment and there would be no need to bring any amnesty scheme in this case.

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Goods clearance: Customs launches online duty, tax payment system KARACHI: Pakistan Customs on Friday successfully launched the online solution for duty and tax payment for goods clearance. In this regard, User Acceptance Test (UAT) of e-payments was conducted at the Custom House, Karachi where ﬁrst goods declaration was processed successfully and duty and taxes were paid through the online system. Federal Board of Revenue (FBR), State Bank of Pakistan, and 1-Link on October 2, 2017 had signed a memorandum of understanding to develop a mechanism enabling the public to pay FBR taxes and customs duty using internet banking or ATMs. Customs authorities said this added to ease of doing business, and the facility would be available round the clock to the taxpayers. It was a big stride in facilitation as in the past, taxpayers faced diﬃculties in paying duty and taxes for getting their consignments cleared.

SHC seeks comments on petition challenging VR 1230/ 2017

Friday March 2, 2018

National

DG Valuation to revise customs values of metallic yarn on March 30

KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he Sindh High Court (SHC) has issued notices to the Customs Department and deputy attorney general, directing them to file their para wise comments on a constitutional petition filed by M/s Universal Auto Engineering against Valuation Ruling no:1230/ 2017 dated 08/12/2017. A two-member bench, comprising Justice Munib Akhtar and Justice Omer Sial, was hearing the petition. Earlier, counsel for the petitioner stated that it is engaged in the lawful import of cars, buses and their parts. He stated that the customs officials issued valuation ruling no 1230/2017 on rear engine intercity buses which was not followed the various methods of valuation and completely ignored the substantial import date of various models in CBU Condition imported

KARACHI

WAQAR AHMED ANSARI www.customsbulletin.com

he Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 796/2016 on March 30, 2018, it is learnt. Surriya Butt said the department was reviewing suggestions from various importers to set new prices of metallic yarn. She said some valuations which were issued in 2016 were being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international market. Sources told Customs Today that a petition was filed with the Customs Valuation in which change in prices of metallic yarn was requested. Sources further told that Valuation Ruling No: 796/2016 was issued on January 18. A meeting was held with the stakeholders on 19th February 2018. Importers were advised to furnish the import invoices of the last three months showing factual val-

ues as well as websites, names and e-mail addresses of known

foreign manufacturers of the items in question through which

the actual current value could be ascertained.

Court approves interim bail of suspect in mis-declaration cases KARACHI

into Pakistan at rang below $70,000. He argued that its consignment lay down at port and officials of the department are not clearing it according with law. Citing Chairman Federal Board of Revenue, Secretary Revenue Division, Director General of Valuation, Chief Collector of Customs Appraisement South, Collector of Customs Collectorate Appraisement East as respondents, he pleaded the court may declare that act of the respondents as illegal, mala fide and arbitrary. He also pleaded the court may direct the officials of the customs department to release its consignment immediately.

M B RANA

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he Customs Court has given interim pre-arrest bail to suspect namely Muhammad Hanif, proprietor of M/s Getco Agencies, who was booked in three separates cases of fraudulent clearance of restricted goods in the garb of raw material for processing at Karachi Export Processing Zone (KEPZ). During the hearing, the suspect appeared before the court along his counsel and moved the bail petition. After the arguments, the court approved the bail against the surety bonds of Rs 500,000 and issued notices to the Customs Department and special prosecutor for the Customs Department. The court directed them to Sile their comments on the next date of hearing. The court also directed the suspect to appear before

the court on the next date of hearing for conformation of the bail. Earlier, investigation ofSicer appeared before the court and submitted initial reports in three separates FIRs and informed the court that during the investigation and circumstances, it is established that owners/ partners of M/s Insiya

Packaging, Muhammad Hanif, proprietor of M/s Getco Agencies and others with the active connivance of their clearing agent and other associates have deliberately mis-declared description of the impugned goods and tried to replace the imported goods with other ones with the intent to get

illegal clearance of the restricted items namely “Betel Nuts” and other items in the garb of raw material for processing at Karachi Export Processing Zone (KEPZ) Karachi and also evading legitimate amount of duties and taxes to the tune of million of rupees. He further informed the court that a gang of culprits is engaged since long in illegal removal of the imported goods en route to KEPZ in an organized manner with the connivance of some black sheep in the customs department, role of tracking company is also very much suspicious in this case. Investigation ofSicer stated that cases were registered against them for violation of under section 2 (s) 16, 32A, 79 and 121 of the Customs Act, 1969 punishable under clauses 8 (i) 9, 14A, 43, 44, 45 and 63 of section 156 (1) ibid read with allied laws procedures and prosecution is trying its best for arrest of above mentioned suspects.

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NCCPL announces to collect capital gain tax Friday March 2, 2018

National Appraisement East lodges FIR against jewellery importer over misdeclaration

KARACHI: National Clearing Company of Pakistan Limited (NCCPL) will collect capital gain tax from clearing members and Pakistan Mercantile Exchange Limited for the month of January 2018 on February 28. The Federal Board of Revenue (FBR) has authorized NCCPL to collect capital gain tax on arising on disposal of shares at Pakistan Stock Exchange. The NCCPL announced that it will collect capital gain tax for the period January 1, 2018 to January 31, 2018, on Wednesday, February 28, 2018 through respective settling banks.

PRA collects Rs130b, SRB Rs38b, KPRA Rs5b and BRA Rs2.9b in H1

KARACHI

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KARACHI

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ustoms’ Appraisement East has lodged an FIR against a jewellery importer in a misdeclaration case. The importer, Mohamad Ishaq of M/s Al-Saudia Enterprises, is accused of mis-declaring C&F value of the imported artificial jewellery through submitting fake and fabricated documents to evade government revenue. A copy of the bill of lading (BL), uploaded in the system, was forwarded to the concerned shipping agent i.e. M/s Mass Forwarding & Trading Company for confirmation of the BL and provision of export GD filed with Indian Customs at the port of Nhava Sheva, India. It was confirmed that the C&F value of the goods is $158,699 as against $7,255 mis-declared by the importers in their GD and supported with a fake import invoice, evading Rs15.717 million.

SHC seeks comments on petition filed by Sonia International he Sindh High Court (SHC) has directed the Customs Department and deputy attorney general to file their comments on a constitutional petition filed by M/s Sonia International against enhancing 100% valuing of ice cream flavours brand “Swensens”. A two-member bench, headed by Justice Munib Akhtar, heard the petition. Earlier, counsel for the petitioner stated that it is engaged in the lawful business of import of ice cream flavors brand “Swensens”; and that it is seriously aggrieved by action of the Customs Department which issued the Valuation Ruling 1167/2017 dated 25/05/2017, fixing higher unit price @ $4.25kg by enhancing 100% value of the impugned goods. –CB Report

he provincial revenue authorities have collected Rs93.28 billion sales tax on services during the Sirst-half (July-December) 2017 as compared to Rs76 billion in the corresponding period of the last Siscal year, showing a growth of 23 percent. According to the statistics released by the ministry of Sinance, the revenue collection by the provinces is gradually increasing with the expansion of the tax net. During the last Siscal year, the combined collection of provincial sales tax on services has posted 32 percent growth to Rs170 billion as compared to Rs129.75 billion. The half-yearly revenue collec-

tion revealed that Punjab has posted 34 percent growth to reach Rs47.16 billion as compared to Rs35.18 billion in the corresponding period of 2016. The Punjab government has

taken several initiatives to increase the revenue collection, especially introduction of real-time monitoring of invoices issued by restaurants, it added. The Punjab Revenue Au-

thority (PRA) has been tasked with Rs130 billion for the Siscal year 2017-18. The authority is hopeful of achieving it through measures introduced during the current Siscal year, including identifying potential taxpayers in different segments of service providers. The Sindh Revenue Board (SRB) has posted 10.37 percent growth in revenue collection during July–December 2017 to Rs38.18 billion as compared to Rs35.18 billion in the corresponding period of the last Siscal year, the statistics revealed. The provincial government has Sixed a target of Rs100 billion during the current Siscal year. The SRB; however, improved the pace of revenue collection by collecting Rs9.5 billion alone in January 2018. The other two provinces are in infancy stage of enforcement of sales tax on services.

Multan RTO surpasses revenue collection task T

MULTAN

IMRAN ALI

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he Regional Tax OfSice has surpassed the revenue collection target as it has collected Rs 6.39 billion against assigned target of Rs 6.12 billion after the late-night collection of February 2017-18. According to reliable sources of RTO that Federal Board of Revenue has assigned Rs.3.30 billion under the head of income tax target for the month of February and Regional tax authorities collected Rs.3.40 billion in terms of income tax. “The RTO has surpassed the assigned target of sales tax as it collected Rs.2.71 billion against the assigned target of Rs.2.70 billion for the month of February. The Regional Tax OfSice has successfully achieved the allocated revenue tasks of February due to effective measures taken by authorities on

the directions of Chairman Federal Board of Revenue Tariq Pasha. The

Regional Tax OfSice has collected Rs.280 million against the revenue

task of Rs370 million under the head of federal excise duty (FED).

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Customs Export retrieves evaded arrears from defaulter companies KARACHI: The Customs Export has recovered evaded amount of taxes and duties of Rs9.86million from defaulter companies of February, which had been earlier issued with notices to pay the outstanding dues. Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Reliance and Co availed undue beneﬁts and concessions by importing diﬀerent consignments after misusing the SRO 562 through Examiner Qayyum Shah. Sources told Customs Today that the company was allegedly involved in tax evasion of Rs7.28million.

Customs PCA detects Rs10.14m by M/s Florence Sanitary Karachi KARACHI

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he Directorate of Customs Post Clearance Audit has showing outstanding performance during the first 20 days of February and detected nine cases. Source told Customs Today that Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 10.14 million allegedly by M/s Florence sanitary, Karachi, it is learnt here. Sources told that M/s Florence Sanitary, Karachi, imported a consignment of diﬀerent type of imported bathroom accessories including Bason and its fitting materials and got it cleared from the PICT vide GDs on December 9, 2017 by paying customs duty at 10 percent after claiming the benefits of the SRO 567/2007. However, the subject items are correctly classifiable under the

PCT 2541.2507 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs10.14 million. The consignment was cleared through Examiner Abdul Sattar . Sources told that the importer violated the provisions of Section 66 (5) of the Customs Act-1969, Section 14 read with Section 47 of the Sales Tax Act-1990 and Section 190 of Income Tax Ordinance 2001 punishable under clauses (247) and 164 of Section 614(6) of the Customs Act-1969, Section 84 of the Sales Tax Act-1990 and Section 92 & 132 of Income Tax Ordinance 2001 and Section 6A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

Friday March 2, 2018

National

Customs Tribunal accepts appeal in imported UPS, mobile charger case

ISLAMABAD

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he Federal Board of Revenue (FBR) has sought help of all citizens of Pakistan who have any information that can lead to identification and tracing of the individuals whose names were disclosed in Panama leaks, Offshore leaks and Paradise leaks. In an attempt to probe and tax the investments of Pakistani citizens who own offshore companies and whose names were disclosed in Panama leaks, Offshore leaks and Paradise leaks, FBR is facing problems in identifying and contacting certain persons due to unavailability of their complete addresses and identifying particulars. The names of these persons and the available particulars are provided. FBR requested all citizens to identify and help it tracing these persons to discharge their national duty by contacting FBR. The information can be emailed on chiefir.operations@fbr.gov.pk or sent on the address Chief IR (Operations-I), Room number 437, 4th floor, FBR Headquarter, Constitution Avenue, Islamabad.

LAHORE

SAJID NAWAZ

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he Customs Appellate Tribunal has accepted an appeal Siled by the Deputy Collector Customs Dry Port MCC Multan against M/s H & D Enterprises and Collector of Customs (Appeals) Lahore. Omer Arshed Hakeem, Member Judicial Bench-II, heard the appeal in details and passed the judgement with remarks that respondent availed illegal beneSit of the SRO 549(I) 2008 through misclassiSication of impugned merchandise, and the department was right in initiating the impugned recovery proceedings. As per brief facts of the case, M/s H & D Enterprises Multan imported a consignment of UPS of Power rating up to 1.5 KVA and mobile chargers/adopters and declared that the used machinery be contained and and got it cleared. During the scrutiny, it was revealed that chargers/adopters were cleared to get the goods classified under the wrong HS Code 8504.4090 and UPS also cleared under the wrong HS code and short levied amount of Rs155563

‘FBR seeks citizens’ help to trace individuals named in Panama’

was recoverable under Section 32 of the Customs Act 1969. After the show cause notice, adjudication proceedings were culminated and Order-in-Original passed with remarks that show-cause notice is established, and the department will recover the short-paid amount with default surcharge and penalty of Rs 5000. Being aggrieved from the order, the appellant filed the appeal before the Collector of Customs (Appeals)

who passed the order that imported goods classified under the correct HS code appeal is accepted. Being dissatisSied, the department Siled the appeal before the Customs Appellate Tribunal on the grounds that appeal before the collector customs appeals was time barred and appeal is liable to be set aside. Appellant also produced the document regarding the illegality of goods. On the other side, respondent denied all the allegations.

Customs values of Glass Blocks & Glass Mosaics Tiles revised

KARACHI

WAQAR AHMED ANSARI www.customsbulletin.com

he Directorate General of the Customs Valuation has revised the customs values of Glass Blocks & Glass Mosaic Tiles Valuation Ruling No: 1261/2018 under Section 25A of the Customs Act-1969. The customs values of glass blocks of Indonesia origin were determined vide Valuation Ruling No: 533/2013 dated 08th of January 2013. Moreover, values of glass mosaic tiles were also determined and notified vide Valuation Database No: 177/2017

dated 03-02-2017. In order to ensure the uniform assessment of glass blocks and glass mosaic tiles with or without porcelain/ceramics, an exercise was undertaken to determine the customs values of subject goods under Section 25A of the Customs Act-1969 to reflect the prices prevailing in the international markets. Stakeholders’ participation in determination of customs values: Meetings with stakeholders were held on 16-01-2018, 25-01-2018 & 06-02-2018 at the Directorate General of Custom House Karachi. However the importers were re-

quested to submit the following invoices of imports during the last three months showing factual value. (ii) Websites, names and Email addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. (iii) Copies of Contracts made/LCs opened during the last three months showing the value of item in question. (iv) Copies of Sales Tax invoices issued during last four months showing the values of supplies (excluding duty and taxes) to substantiate their contentions. Method adopted to determine Customs values: Valua-

tion methods given in Section 25 of the Customs Act-1969 were applied sequentially to address the valuation issue at hand. Transaction Value Method under Sub-Section (1) of Section 25 of the Act ibid was found inapplicable because the requisite information under the law was not provided by the importers. Identical and Similar Goods valuation methods provided in Sub-Sections (5) and (6) of Section 25 of the Customs Act-1969 provided some reference values but, due to wide variations in the declarations, the same could not be relied upon exclusively.

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Thai imports fall at Myawady border while Myanmar exports increase slightly

World Customs

Friday March 2, 2018

BANG KOK: Imports from Thailand crossing at the Myawady border gate have declined from last year’s volume. Between April and February, flow across the border totalled US$766.7 million – $66.2 million earned on exports and $700.5 million spent on imports from Thailand. That represented an increase of $15.8 million in exports and a decrease of $21.9 million, compared to the figures from the same period last year.

Exports of Turkish hazelnuts to China see massive increase

Arkhangelsk, Nenets residents pay $2.47b taxes MOSCOW

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ANKARA

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urkey holds the majority of the world hazelnut production and exports and has found its biggest market in Europe, yet recently China has become an important opportunity for expansion. The advertising and promotional activities carried out by the Hazelnut Promotion Group (FTG) in the East Asian countries, especially in China, since 2000 started bearing fruit. The amount of hazelnuts sold to China has increased signiSicantly in recent years. While Turkey sold 712,928 kilograms of hazelnuts to China in 2007, this Sigure rose to 7.3 million kilograms in 2017. In the decade since 2007, 26 million kilograms of hazelnuts were exported to China, which brought about $216.3 million to the country’s economy in foreign currency.

Netherlands fermented beverages market his report presents a comprehensive overview of the fermented beverages market in the Netherlands and a forecast for its development in the next five years. It provides a detailed analysis of the market, its dynamics, structure, characteristics, main players, growth and demand drivers, etc. Purpose of the report is to describe the state of the fermented beverages market in the Netherlands, to present actual and retrospective information about the volumes, dynamics, structure and characteristics of production, imports, exports and consumption and to build a forecast for the market in the medium term. In addition, the report presents an elaborate analysis of the main market participants, the price fluctuations, growth and demand drivers of the market and all other factors. –CB Report

Edip Sevinç, Chairman of the Black Sea Hazelnut and Hazelnut Products Exporters’ Association, said that they attach great importance to the Chinese market. Noting that there has been important and pleasing developments in exports to the Asian country, Sevinç said since 2000, the FTG has been carrying out advertising and promotional activi-

ties in the Far Eastern countries, especially in China, stressing that the years of work have finally started bearing fruit. Sevinç said they believe the Chinese market will become even more important for Turkey in the future, pointing out that the figures also support their assumptions. “Turkey’s most important market is comprised of the European countries.

China’s sorghum snub could turn US farmers toward corn and soy

hina may have just handed farmers in the U.S. Plains a good reason to maintain or increase the already elevated corn and soybean acreage this spring. DDGs are a byproduct in cornbased ethanol production and are used in livestock feed. Sorghum is also heavily used in feed and competes with DDGs, corn, and other grains. Beijing’s heavy duties on U.S. DDGs have been palpable as

Chinese imports of U.S. DDGs were nearly 90 per cent lower in 2017 than in 2016. However, the United States has many other trade partners when it comes to DDGs, and its total exports through the first 11 months of 2017 were down only three per cent from the same period in 2016. But exports are a big part of the U.S. sorghum market, and China has the leading role. –CB Report

axpayers in the Arkhangelsk and Nenets Regions in 2017 paid to budgets of all levels more than 140 billion rubles ($2.47 billion), press service of the local tax authority said on Thursday. “In 2017, tax payers in the Arkhangelsk and Nenets Regions paid to Russia’s budget system 141.9 billion rubles, which is a growth by 1.2 times year-on-year,” the press service said. “The tax payments in Arkhangelsk were 69 billion rubles ($1.22 billion) and in the Nenets Region – 72.9 billion rubles ($1.28 billion).” The biggest payments were in taxes on oil production (39.8%). Personal income taxes take 19.9% of the payments, taxes on corporate incomes – 15.5%, and VAT – 5.3%. Within 2017, the federal budget

received 70.8 billion rubles ($1.25 billion), the Arkhangelsk Region’s budget received 47.5 billion rubles ($836 million), the Nenets Region’s budget – 10.7 billion rubles ($189 million). The year-on-year growth was respectively by 30%, by 16.2% and by 23%. The bigger payments to the federal budget were due to bigger VAT payments (by 10.7 billion rubles ($189 million)) and oil production tax payments (by 4.7 billion rubles ($83million)). The municipal budgets in 2017 received 12.2 billion rubles ($215 million). The main source is the personal income tax, which accounts for 80.7% of all the payments. Meanwhile, A Russian crackdown on tax avoidance in the agriculture sector has been a boon for its grain traders, allowing them to buy directly from farmers and cut out a complex web of middlemen. Traders include big international commodities houses and some traders said proSit margins on Russian grain had turned positive since the crackdown last year.

India mulls over new export strategy ndia will announce a comprehensive strategy to increase the share of global trade to 40 per cent of the gross domestic product. Union Commerce and Industry Minister Suresh Prabhu announced this after India’s exports rose by nine per cent to US $24.38 billion in January. Nevertheless, the gain was nulliSied by an even stronger growth in imports at per cent, which widened trade deSicit to a three-year high of US $16.3 billion. Imports in January stood at US$40.68 billion (Trade deSicit is the difference between imports and exports). The last time it was this high, was in November

2014, when it touched US$16.86 billion. The deSicit in January last year was US$9.90 billion. Among India’s trading partners, the top five countries with which India has negative bilateral trade balance are China, Switzerland, Saudi Arabia, Iraq and South Korea while the top five with which it has surplus trade balance are UAE, Bangladesh, Nepal, UK and the US. India has the highest trade deficit with China. Exports are the driving force of our growth strategy. We are coming out with a comprehensive strategy to increase the share of global trade to 40 PC of GDP. –CB Report

South Africa’s rich will soften the tax blow for the poor

CAPE TOWN

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he rise in value added tax (VAT) to 15% will hurt lower-income households disproportionately, says Momentum Investment Economist, Sanisha Packirisamy. However, the rich will face additional tax on

high-end estates, luxury items and donations. This comes after Finance Minister Malusi Gigaba announced various economic reforms. This is reportedly set to place our economy back on track and with a positive fiscal outlook. Packirisamy noted that credible structural reform efforts were announced in the budget, but implementation will be key to ele-

vate SA’s growth profile. Government attempted to keep tax increases redistributive, by raising estate duty rates. This will see estates valued at more than R30 million being taxed by between 20% to 25%. This is expected to generate R150 million in the 2018/19 financial year. Donations tax exceeding R30 million will also see a 20% to 25% tax in-

crease whereas excise duty on luxury goods will see a tax increase between 7% and 9%. This increase is expected to produce R1 billion in the 2018/19 financial year. However, despite VAT increase which will hurt consumer spending, Treasury noted the zero-rating of basic food items mitigates the effect of the tax increase on poorer households.

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Thailand January exports rise at fastest rate in 5 years BANG KOK: Thailand’s exports grew at the fastest rate in more than five years in January while import growth came in above estimates. Thailand’s customs-cleared exports rose 17.6 per cent year on year in January, the largest increase in percentage terms since November 2012, according to figures from the Ministry of Commerce. That increase was above the 11.1 per cent forecast by economists in a Reuters poll and signalled continued robust growth at the start of the first quarter. Thailand’s economy grew 4 per cent year on year in the three months to the end of December as strong export demand supported the country’s manufacturing sector.

KPT shipping intelligence report he Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours. ALONG SIDE (Bulk Oil Pier) OP-I Sunrise D. Mogas GAC 18/02/18 OP-II Willet D. Base Oil OC.World 18/02/18 OP-III Shalamar D. Crude Oil PNSC 18/02/18 ALONG SIDE (East Wharves) Selin D L. Molasses East Wind 18/02/18 2/3 Lemesos Lion D. Meal WMA Shipcare 04/02/18 4 Cos Prosperity D. Gen.Cargo Aaras-Sh. 17/02/18 5 Sbi Hermes D. Coal Crystal Sea 18/02/18 10/11 Naluhu D. Coal East Wind 19/02/18 12/13 Ince Tokyo L. Wheat WMA Shipcare 19/02/18 15/16 CS Flourish D. Gen. Cargo Sea Hawks 19/02/18 ALONG SIDE(P.I.C.T) Berth Vacant… ALONG SIDE(PDWCP): Berth Vacant… Along Side(West Wharves) 21 BBC Orion L. Gen. Cargo Port Lnik 18/02/18 ALONG SIDE (K.I.C.T): 26/27 Express Black Sea D. L. Cnt. NYK Line 19/02/18 EXPECTED

Ports & Shipping

‘Gwadar Port to open new vista of progress & prosperity’ SIALKOT

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he Foreign Minister said that elections of Senate and general elections would be held on time. He urged the people to use their right to vote during the general elections for bringing about revolutionary changes in the country. “Its our national duty to exercise our right to vote which should be used after assessing the performance of the government”, he added. He said, due to effective policies of the PML-N government, 10,700 MW electricity had been added to the national grid, so as a result of hectic efforts, there was no loadshedding in the country. Khawaja Asif urged the students to focus on their studies for sharing the future burden of the country, adding education was the only tool which could bring about revolutionary changes in the country. Vice Chancellor of the University Dr. Farhat Saleemi, Deputy

Commissioner Sialkot also spoke on the occasion. Later, Foreign Minister Khawaja Asif, Provincial Minister for Local Government Manshaullah Butt and Deputy Commissioner Sialkot distributed

laptops to students. Later, Foreign Minister Khawaja Asif, Provincial Minister for Local Government Manshaullah Butt and Deputy Commissioner Sialkot distributed laptops to students.

Friday March 2, 2018

Shipping Activity at Port Qasim hree ships, APL Antwerp, MSC Rachele and Horizon carrying Containers and Palm oil arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was observed at the port at 47% on Sunday, where a total of eight ships namely, GSL Tianjin, Cape Mayor, Mu-Main Song, Star Sirius, Spring Cosmos, Epic Sardinia, Able Sailor and Agent Aster are currently occupying berths to load/oﬄoad Containers, General Cargo, Canola Seeds, Coal, LPG and Palm oil. Cargo handling during last 24 remained at 115,437 tonnes, comprising 65,372 tonnes import cargo and 50,065 tonnes export cargo inclusive of containerized cargo carried in 4,349 Containers (TEUs), (1,714 TEUs imports and 2,635 TEUs exports) was handled at the port. Four ships Mu-Main Song, Epic Sardinia, Able Sailor and Agent Aster sailed out to sea on Monday morning, while another ship Cape Mayor is expected to sail on same day. Five ships, MSC Rachele, MSC Joanna, Panorama, Chemroute Sun and Golar Maria carrying Containers, Soya Bean Seeds, Palm oil and LNG are expected to take berths at QICT, FAP, LCT and PGPCL respectively on Monday.

Thailand exports rise at fastest rate in 5 years ARRIVALS: CONTAINER (GEARLESS) Kota Lagu P-Delta 18/02/18 Not Sched 1500 Cnt. 1500 Cnt. Kota Kaya P-Delta 21/02/18 Not Sched 300 Cnt. 500 Cnt. MOL Eminence Mol Pak 21/02/18 Not Sched 700 Cnt. 1000 Cnt. Kota Karim P-Delta 28/02/18 Not Sched 300 Cnt. 500 Cnt. Xin Chang Shu P-Delta 02/03/18 Not Sched 600 Cnt. 600 Cnt. Kota Kamil P-Delta 07/03/18 Not Sched 300 Cnt. 500 Cnt. GENERAL CARGO: Bow Platinum Sea Hawks 19/02/18 Not Sched 7,542 G.C Nil BBC Orion Portlink 20/02/18 Not Sched Nil 999 Defence BBC Rhine Gulf Maritime 20/02/18 Not sched 926 G.C Nil Damas Crystal Sea 16/02/18 Not Sched Nil 163 G.C Nil Hermann-S GAC 16/02/18 Not Sched 30,974 Steel. –CB Report

TEHRAN

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t the sixth Joint Economic Meeting between Afghanistan and Iran, ofSicials of both nations agreed that Afghan goods trucks can cross into Iran without having to present bank guarantee letters. In addition, border tariffs will also decrease. Ministry of Commerce and Industries (MoCI) officials on Monday said both sides recognize the need to implement the World Road Association agreement and to lower transit costs. According to MoCI officials, the drop in tariffs will hopefully increase exports from Afghanistan to Iran and to India and Gulf countries. “It was a productive meeting and scrapping the bank guarantee (regulation) for Afghanistan’s trucks has been a big

achievement,” said MoCI spokesman Muafir Quqandi. Statistics show that Iran has in recent times become a major trade partner to Afghanistan and that trade volume between the two countries has reached the $2 billion USD a year mark. Afghanistan Chamber of

Commerce and Industries spokesman Seyam Pesarlay said if border tariffs and processes are eased then Afghan traders will increase import and export trade through Iran. “We want to use International Road Transports (TIR Convention) for exportation to Iran,

some of Central Asian countries and some European countries,” said Pesarlay. According to economic experts, expanding trade ties with neighboring countries will increase Afghanistan’s exports and will help break the tradition of Afghanistan having to rely on only one or two countries for imports and exports. The TIR Convention is a multilateral treaty that was concluded in Geneva in 1975 to simplify and harmonize the administrative formalities of international road transport. The TIR Convention establishes an international customs transit system with maximum facility to move goods. The TIR system not only covers customs transit by road but a combination is possible with other modes of transport, including rail, inland waterway, and even maritime transport, as long as at least one part of the total transport is made by road.

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Shoaib Shaikh sent to jail in money laundering case KARACHI: Axact CEO Shoaib Shaikh was sent to jail on judicial remand till March 3 by the district court south which was hearing a money laundering case. Shaikh was arrested on Monday evening after the Sindh High Court (SHC) rejected his protective bail application, which was submitted after the court approved the Federal Investigation Agency’s (FIA) appeal against the acquittal of those accused in the Axact money laundering case.

Friday March 2, 2018

Business

Names of three ex-generals put on ECL ISLAMABAD

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he interior ministry has placed the name of former minister for railways retired Lt Gen Javed Ashraf Qazi on the Exit Control List (ECL). The names of railways’ former chairman retired Lt Gen Saeed-uzZafar, former general manager retired Maj Gen Hamid Hasan Butt and former member retired Brig Akhtar Ali Baig had also been put on the ECL at the request of the National Accountability Bureau (NAB). They are accused of illegally transferring 140 acres of prime railway land in Lahore to a

Permission to import US Dollars continues

KARACHI

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Malaysian firm during the Musharraf government in 2001 for development of a golf course called Royal Palms Gold and Country Club at throwaway rates, causing a loss of about Rs2.16 billion to the national exchequer. The Islamabad

Tarbela 4th extension project starts power production

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tate Bank of Pakistan (SBP) has extended permission to exchange companies to import of US Dollars against export of other foreign currencies. The SBP issued a circular inviting attention of authorized exchange companies related to instructions on import of US Dollars whereby exchange companies had been allowed to import cash US dollars against export of permissible foreign currencies up to December 31, 2017.

High Court had last week ruled that retired military officers could not hide behind the army’s accountability process. NAB has now decided to reopen the corruption reference against the four retired senior army officers, including

Javed Ashraf Qazi. The reference remained dumped for more than a decade due to the anti-graft watchdog’s reluctance to act against the military officers. A spokesman for the bureau had said that a meeting of NAB officials had authorised the filing of a reference against retired Lt Gen Ashraf Qazi, retired Lt Gen Zafar, retired Maj Gen Hamid Butt, retired Brig Akhtar Baig, railways’ former general manager Iqbal Samad Khan, former member Khursheed Ahmed Khan, former director Abdul Ghaffar and former superintendent Mohammad Ramzan Sheikh, as well as Husnain Construc¬tion Company director Pervaiz Latif Qureshi, the chief executive of Unicon Consul¬ting Ser¬vices, the director of Max Corp Development.

LAHORE

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he Water and Power Development Authority (Wapda) achieved another landmark for energy security as the Tarbela 4th extension project started electricity generation. The Sirst generating unit has started providing electricity to the national grid. Wapda Chairman Muzammil Hussain visited the site to mark the development. Highlighting signiSicance of the project in economic and social de-

velopment of the country, Hussain announced that the prime minister would formally inaugurate the Tarbela 4th extension project in the second week of March. Under the 1,410-megawatt project, three electric power generating units each of 470MW have been installed at tunnel 4 of Tarbela Dam. The first unit has started electricity generation whereas the second unit is scheduled to be commissioned by the end of April. The third unit will start electricity generation by the end of May. Hussain emphasised that Wapda was deter-

mined to add 2,487MW of low-cost hydroelectric power to the national grid by June 2018 with phased completion of its three projects, which included 108MW Golen Gol project, 969MW Neelum-Jhelum project and Tarbela 4th extension. With completion of the extension project, the generation capacity of the existing Tarbela Hydel Power Station would increase to 4,888MW from the existing 3,478MW. The Tarbela 4th extension project will provide 3.84 billion units of electricity to the national grid per annum.

Bank Alfalah profit increases 7.9% to Rs14.04b ISLAMABAD

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he profit before taxation of Bank Alfalah was recorded at Rs14.045 billion during the calendar year 2017, showing 7.9 percent improvement when compared to the profit of Rs13.023 billion during 2016. According to the press statement of the bank, the profit after tax also improved by 5.9 percent by going up from Rs7.900 billion last year to Rs8.367 billion during the CY 2017, adding that this translated into an EPS of Rs. 5.21 per share for 2017 against Rs. 4.93 per share in 2016. Despite pressure on interest margins due to a consistent low interest rate environment and maturities of high yielding bonds, total revenue for the year increased to Rs39.174 billion as against Rs37.899 billion last year, improving by 3.4 percent. Growth in overall average earning assets, reduction in funding costs, and continued focus on core fee and commission, all contributed to this growth. During the year, the Bank continued with its focus on strategic cost control and optimization initiatives and went through an internal re-organisation, the cost of which has impacted the fourth quarter results.

Shahid Shafiq remanded to NAB custody LAHORE

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n accountability court handed over accused Shahid Shafiq, Chief executive of Bismillah Engineering Services, to National Accountability Bureau (NAB) on physical remand till March 5 in Ashiana-i-Iqbal Housing scam. Earlier, the accused was presented amid strict security before Ac-

countability Court Judge Syed Najam-ul-Hassan on expiry of his oneday physical remand. The NAB prosecutor requested the court to grant 15 days physical remand of the accused for collection of evidence and carrying out investigations in accordance with law. However, a defence lawyer opposed the request stating that the accused was allegedly tortured. He requested the court to issue directions for

medical examination of the accused. He further requested the court to adjourn the matter for one-day as the senior defence counsel was not available today for arguing the matter due to his engagements in Karachi. To which, the NAB prosecutor argued that the bureau had medical facilities and requested for physical remand of the accused. The court after hearing arguments of both parties remanded

the accused into NAB custody on physical remand till March 5. The court directed NAB officials to produce him again on expiry of the remand term. The NAB had arrested the accused on charges of presenting fake documents, obtaining constructive possession of Ashiana-i-Iqbal project without financial close and willfully failing to complete the project, causing a loss to the government. Shahid in connivance with

LDA officers/officials presented fake documents of joint venture/consortium comprising three firms – Bismillah Engineering Services Co, M/s Sparco Construction Company and M/s China First Metallurgical Group Co Ltd — and eventually obtained a contract of Rs 14 billion illegally being owner of C4 category company, which was not eligible to get a contract worth more than Rs 150 million.

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Apple owes Ireland 13b euro DUBLIN: The Irish government’s tax man was asked by the government what he thought Apple owed the country over its dodgy tax arrangement and he agreed with the EU. For those who came in late, the EU has declared the Irish deal hatched out between Apple and the government was illegal and Jobs’ Mob is required to pay shedloads of tax it should have paid. Apple has denied that it has done anything illegal, but then again it didn’t think there was anything wrong with forming an illegal cartel with book publishers to make its customers pay more for books. The Irish government also does not want Apple’s money because it fears that Jobs’ Mob will take its jobs somewhere else so it asked its tax man if the 13 billion euro ﬁgure demanded by the EU was wrong.

LCCI chief welcomes reforms in Punjab for EODB

Chambers

Realtors call for tax amnesty to promote investment in real estate sector

LAHORE

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he Lahore Chamber of Commerce & Industry has welcomed the reforms introduced by the Punjab for ease of doing business and said that Chief Minister Punjab Shahbaz Sharif deserves appreciation for taking another giant leap towards economic self-reliance by supporting the business sectors. In a letter written to Chief Minister Punjab Shahbaz Sharif, the LCCI President Malik Tahir Javaid said that construction permits, property registration and business registration related reforms will not only give breathing space to the industrial sector but would also improve Pakistan’s international ranking in ease of doing business. Malik Tahir Javaid, who has

suﬃcient command over the challenges being faced by the business community, said that at present Pakistan is experiencing worst ranking in ease of doing business but this great initiative of Chief Minister Punjab will help raise Pakistan’s competitiveness at global market place. The LCCI President said that standardization of by-laws of Metropolitan Corporation Lahore and Lahore Development Authority, no requirement of No Objection Certificate (NOC) from Environment Protection Agency for non-hazardous projects, issuance of building permits for commercial warehouses in just 21 days by Metropolitan Corporation Lahore from E-khidmat Center at Town Hall and Issuance of Building permits for commercial warehouses in 14 days by Lahore Development Authority through One Window Facility will help industrial sector flourish while business registration related reforms will also give huge relief to the industrial sector.

Friday March 2, 2018

ISLAMABAD

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delegation of Real Estate Consultants Association, DHA, Islamabad led by President Col. ® Munawar Heral visited Islamabad Chamber of Commerce & Industry (ICCI) and apprised ICCI office bearers of the problems being faced by the real estate sector. Arif Jeewa, Chairman, Association of Builders and Developers of Pakistan, Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI were also present at the occasion. Addressing the delegation, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that real estate sector has the potential to promote investment, industry, economic growth and employment, however, government imposed heavy taxes on it in budget 2016-17 that have badly affected its growth. He said that growth of around 250 ancillary industries including cement, steel, brick, timber and building material was dependent on real estate sector,

but the increase in taxes has slumped the business of all these allied industries. He urged that government should cut heavy taxes on this sector in the coming budget for its revival. He assured the Real Estate Consultants Association DHA Islamabad that ICCI would fully cooperate in resolving their key issues. Arif Jeewa, Chairman ABAD said that real estate sector played important role in the economic development of any country, but heavy taxes on this sector in Pakistan have

damaged its growth. He said many investors were now leaving real estate sector that was not good for the economy. He cautioned that if government did not pay urgent attention to resolve the key issues of real sector, it would discourage new investment in the country and give rise to unemployment. Speaking at the occasion, Col ® Munawar Heral President and Muhammad Ahsan General Secretary, Real Estate Consultants Association DHA Islamabad said that

ICCI’s Tenpin Bowling Championship concludes ISLAMABAD

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he Sports Committee of Islamabad Chamber of Commerce & Industry organized a two day Tenpin Bowling Championship to promote sports activities in the members of Chamber and their kids. The championship featured men’s singles and team, females singles and doubles, mixed team and singles for kids of the members. M. Ashfaq Chatha, former Vice President ICCI got the Sirst position while M. Faheem Khan, M. Wasil and Baser Daud were the Sinalists of the Championship. Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry was the Chief Guest while former Senator Syed Zafar Ali Shah was the Guest of Honor of the closing ceremony.

Speaking at the occasion, he called upon the business community to take active part in sports activities to remain a healthy citizen. He stressed that government should focus to promoting sports activities in order to develop a healthy society. He said Pakistan achieved international trophies in cricket, hockey, squash and snooker that showed that our youth has great talent to excel in every sports. He said government should create conducive environment for sports and provide all needed facilities for promoting sports activities. He congratulated Nasir Mehmood Chaudhry chairman and all members of ICCI Sports Committee for successful holding of Tenpin Bowling Championship. Syed Zafar Ali Shah said that promoting sports activities was necessary for a healthy society. He said sports activities also promoted trade

and industrial activities. He said security situation has Pakistan has improved signiSicantly and hoped that soon, Pakistanis would witness international sports events in the country. He also lauded the efforts of ICCI Sports Committee for organizing Tenpin Bowling Championship and assured of his full support for such activities. Muhammad Naveed Senior Vice President and Nisar Mirza, Vice President, ICCI assured that Chamber would fully cooperate with Sports Committee in its endeavors aimed at promoting sports activities among the business community. Nasir Mehmood Chaudhry, Chairman, ICCI Sports Committee thanked the business community and their kids for taking active participation in the Tenpin Bowling Championship and added that the Committee would try to organize many other sports events including matches of cricket.

since July 2016, government has increased 100 percent taxes on real estate sector that caused 50 to 60 percent reduction in its business activities. They said heavy taxes on this sector have forced the investors to shift their capital outside the country. They stressed that government should withdraw heavy taxes on this sector and announce a general amnesty scheme for it to attract investment from expatriates and Pakistanis. They said a Slat rate of 5% gain tax should be charged on this sector. They said if government wanted fair market value of property, it should abolish all taxes on real estate and charge 0.5% tax on Silers and 1% on non-Silers on sale and purchase of property. Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI said that the economy of Pakistan was facing many challenges and real estate sector has the potential to steer it out of troubles. They stressed that government should reduce taxes on real estate sector in order to promote investment and create new jobs that would trigger the economic growth of the country.

Iran exports to Iraq exceed $5.5b ran exported $5.57 billion worth of nonoil goods to Iraq during the 11 months to Feb. 19, the secretary-general of IranIraq Chamber of Commerce said. Hamid Hosseini also told Financial Tribune that food, fruits, vegetables and construction materials were major commodities exported to Iraq from Iran during the 11month period. According to Chairman of Trade Promotion Organization of Iran Mojtaba Khosrotaj, Iran was the third biggest trading partner of Iraq in 2016. With a 22% share in Iraq’s foreign trade, Turkey is Baghdad’s top trade partner followed by China with a 20% and Iran with a 16% share, IRNA reported. Khosrotaj noted that food exports constituted 19% of Iran’s non-oil exports to Iraq in the past three years followed by agro products (15%), chemical products. –CB Report

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Sahiwal Enforcement-IR seizes 1.04m sticks of NDP cigarettes SAHIWAL: Inland Revenue Enforcement has seized huge quantity of 1.04 million sticks of non-duty paid cigarettes in Sahiwal. The IR Enforcement has intensified its efforts against smuggling after creating a new tobacco squad at Regional Tax Office Sahiwal. The squad, on a tipoff, that one Muhammad Abbas, a cigarette stockist, was involved in sale of non-duty paid cigarettes, obtained search warrant from the Magistrate and with the local police reached his business premises at Shalimar Town Main Street Harappa Station, Sahiwal.

Friday, March 2, 2018

CUSTOMS BULLETIN

Quetta Customs I&I confiscates Iranian diesel worth Rs2 million QUETTA WAQAR AHMED ANSARI www.customsbulletin.com

he Directorate of Customs Intelligence and Investigation successfully conSiscated Iranian diesel worth Rs 2 million. Sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Chaudhary received a tip-off that some smugglers are trying to smuggle Iranian diesel from Quetta into different cities. He immediately constituted a raiding team. The team In-Charge, Preventive, Wajid ur Rehman and others enhanced the surveillance on the Quetta Highway and started searching vehicles During the search operation, the team intercepted an oil tanker bearing registration No: QX-7251 which was going from Quetta to other cities. During the checking, the customs team recovered 22,000 Iranian diesel worth Rs 2 million. The customs team seized diesel and arrested two smugglers including driver. The Directorate of Customs Intelligence and Investigation Quetta registered an FIR against the smugglers and started investigations.

FIU Sara-e-Muhajir takes into possession truck valued at Rs5m FAISALABAD

NAEEM SHEIKH

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he Field Investigation Unit (FIU), Sara-e-Muhajir, Customs Intelligence and Investigation has impounded a Hino truck worth Rs5million involving duty and taxes amounting to Rs3million during an action. Deputy Director Rana Irfan Shouqat received a tip-off regarding the Non-Duty-Paid

vehicle. He constituted a raiding team under the supervision Superintendent Muhammad Tahir Intelligence OfSicers Adnan Ahmed Chandia, Anser Saleemi and Sepoys Mukhtar Ahmed, Fakhar Abbas, Muhammad Shehbaz and Usman Iqbal to take into possession the Non-Duty-Paid vehicle. The intelligence team intercepted a Hino truck bearing registration No: TKR-275, Model 1991, near Chowk Sara-e-Muhajir, District Bhakkar, and asked the owner named Arshad Hussain son of Manzoor Hussain for showing documents regarding the customs clearance of

the vehicle but he failed to do so. The FIU team impounded the vehicle under Section 2KK of the Customs Act-1969 and sent the case to the adjudication for further legal action. Meanwhile, The Federal Investigation Agency (FIA) has conducted raid at Faisalabad Dry Port Trust. Sources told Customs Today said that accused include ex General Manager Nasar Hayat, Manager Operation, Naveed Imran, Deputy Manager Rana Nasarullah, Import OfSicer Tariq Saeed and Manager Information Technology Farhan Ali. The case has been reg-

istered on complaint of Colonel ® Amer Majeed General Manager (Administration) Dry Port. Sources told that the dry port management has lodged a FIR at Chak Jhumra Police Station and filed a case against five top officers of the Faisalabad Dry Port Trust on charge of embezzlement of Rs 25.3 million from the dry port funds. FIA Faisalabad has initiated criminal proceedings and has taken digital equipment including computers, laptops and main servers into possession for forensics and retrieval of relevant data information. The ac-

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counts related ledgers registers and invoices have also been taken into possession by FIA Faisalabad for further legal action. Sources told that complaint lodged with police under section 408 PPC it has been alleged that the accused inflicted a financial loss of Rs 25.3 million. Former General Manager Nasar Hayat also took away a new car worth Rs 1.9 million mobile phones and laptop after quitting their jobs. The accused manipulated to get re employment of the dry port in 2015 with the help of some influential trustees of the dry port.