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Karachi, Fri March 30, 2018

ISLAMABAD

M FAIZAN

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he Federal Board of Revenue (FBR) has launched first version (beta) of Knowledge Base Portal for guidance and facilitation of taxpayers. The portal was launched jointly by Member Customs Muhammad Zahid Khokhar and Member Information Technology Khawaja Adnan Zaheer. According to the details, Knowledge Base Portal is a digital help library for taxpayers, tax collectors and

other related stakeholders. It is the Qirst common help platform of the FBR which provides instant guidance on all issues related to the federal taxes and duties. FBR’s Knowledge Base Portal is an interactive portal and allows users to provide feedback regarding improvement in the articles and suggestions for addition of further articles. The articles on the portal shall be published after vetting by an expert domain team of the FBR. All users will be able to search for their required material just like on any other search engine e.g. Google, Yahoo etc. by writing the key

Vol 2, Issue No. 363

Price Rs. 14.00

words in the search bar. There are around thirty articles in the Qirst version (Beta) of the portal and FBR plans to improve and increase the number of articles based on the feedback and suggestions of the users. The articles will mainly focus on helping the users on how to use FBR’s IT systems and also educate them on the laws behind the various modules of Iris, WeBOC and e-portal. This is a major step towards providing maximum ease and facilitation to the all users of FBR’s IT systems. Step by step help will also be available during Qiling of return.

Customs generates Rs4980m extra revenue even before three months

Adjuction-II M/s Nisar Traders served show cause notice for tax evasion

Customs I&I impounds NDP Mercedez, Toyota Mark X

DG Valuation revises customs values of nylon yarn vide VR No 1270

Customs I&I Hyderabad takes unregistered & NDP Prado into possession

MCC Islamabad earned Rs4980million more revenue | See pAge 02 |

Adjudication-II has issued a show-cause notice on against NisarTraders | See pAge 03 |

Customs I&I impounded NDP Mercedez car & Mark X during special checking | See pAge 04 |

DGValuation has revised the customs valuesofnylonyarnvideVRNo:1270/2018 | See pAge 09 |

Customs Hyderabad, impounded a NDP used Toyota Land Cruiser Prado | See pAge 16 |

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Duty cut on 47 steel products recommended Friday, March 30, 2018

Islamabad

ISLAMABAD: The Commerce Ministry has asked the Federal Board of Revenue to slash regulatory duty on 57 tariff lines out of which 47 tariff lines belong to steel products. These 57 tariff lines are of three different products including sulphonic acid, yarn and steel products. The government on October 16, 2017 imposed regulatory duty through SRO 1035(I)/2017 on 731 tariff lines.

customs generates rs4980m extra revenue even before three months

ISLAMABAD

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tArIQ DerYA

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ulafikar Ali Chaudhry, Collector, MCC Islamabad, has constituted a committee for destruction of perishable Indian origin smuggled biosecurity risk products. According to an office order C: NO03(01)ADM/2018/4059 that in the wake of a letter from the Department of the Plant Protection dated 14-03-2018, fresh fruits and vegetables coming into Pakistan from India through Line of Control (LOC) trade are carrying biosecurity risk. It mentioned that the Indian origin consignments seized by the Preventive Division, Model Customs Collectorate (MCC) Islamabad, need to be disposed of under Rule 34 (a) (l) chapter ix of the Customs General Order (CGO)-12-2002. It added that the Destruction Committee in such cases shall comprise Assistant Collector, Preventive Division, Superintendent, State Ware House (SWH), Superintendent, Preventive Division, Inspector, Customs House Office (CHO), and Inspector SWH Islamabad. The MCC Islamabad has to destroy a couple of millions of kilograms of seized Indian origin banana impounded during different actions.

he Model Customs Collectorate (MCC) Islamabad earned Rs4980million more revenue during Qirst three quarters of the year starting from July to March FY17-18 than an assigned revenue target. This has been stated by Saiqa Abass, Assistant Collector, Model Customs Collectorate (MCC) Islamabad, while giving an exclusive interview to Customs Today. During Qirst eight months and three weeks of FY17-18, the MCC Islamabad showed outstanding performance by surpassing the annual target within Qirst three quarters of the annual four quarters, she explained. She said the annual target of the collectorate is Rs15559.23million revenue while Rs10656.75million was the assigned target for three quarters of the whole year. It earned Rs15637.24million under all the heads during July to 21st of March FY17-18. About Rs10656.75million revenue target is for three quarters. She added that the MCC Islamabad achieved 146.74% increase by collecting a revenue collection from January to March 21, FY17-18 against an allocated revenue target up to March FY17-18. She told CT that the MCC Islamabad attained 101% growth during said period against an earmarked annual rev-

Body formed to destroy Indian perishable smuggled items

enue target under all the heads. Assistant Collector further said that the MCC Islamabad earned Rs6845.85million of Customs Duty (CD) for FY17-18 whereas it was assigned Rs4468.79million under the same head upto March FY17-18 while the MCC Islamabad received Rs5345.00million during July to 21st of March FY17-18. The MCC showed 119.61% revenue hike during July to

21st of March FY17-18 against a target of Qirst three quarters whereas MCC achieved 78% increase against an allocated revenue target for the entire FY17-18 under the head of CD. Saiqa Abass said that the MCC Islamabad was earmarked Rs5276.84million revenue collection target for FY17-18 under the head of Sales Tax (ST) while MCC was allocated Rs3689.74million under the same

head up to March FY17-18. She added that the MCC got Rs7328.89million of ST during July to 21st of March FY17-18 against an assigned revenue target for Qirst three quarters as well as annual target of FY17-18. The MCC showed 96.60% performance against a revenue target up to March FY17-18 whereas it achieved 139% growth against an earmarked annual target of FY17-18.

Ihc hears diﬀerent customs cases during third week of March

ISLAMABAD

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he Islamabad High Court (IHC) dated in ofQice the hearing of a number of cases, including M/s Fertilizers (Private) Limited’s case Qiled against Appellate Tribunal Inland Revenue (ATIR) during third week of March. A division bench of the IHC comprising Justice Shaukat Aziz and Justice Mohsin Akhtar had reserved the decision of the matter

after hearing Qinal arguments. M/s Fertilizers had Qiled the case, challenging an announcement made by the ATIR through which it had sustained a decision announced by the department’s adjudication pertaining to the tax recovery notice issued to the company. Through the reference, M/s Fertilizers Private Limited had named chief commissioner Inland Revenue, LTU, assistant commissioner Inland Revenue Withholding, LTU, commissioner Inland Revenue (Appeals), LTU, and Feder-

ation of Pakistan through the chairman of Federal Board of Revenue (FBR) as respondents in the case. The tax recovery notice had been issued for the tax year 2013 under the head of income tax under Income Tax Ordinance, 2001. The appellant had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard. The petitioner had prayed the court operation of the impugned notices issued by the tax authority

may kindly be suspended till the decisions of appeal pending before the LTU. Earlier Justice Athar Minallah and Justice Miangul Hassan had heard M/s Dancom Pakistan’s case and reserved decision as the parties concluded arguments and submitted relating record. M/s Dancom Pakistan had filed the case challenging an announcement made by the Appellate Tribunal Inland Revenue (ATIR) through which it had sustained decision announced by the

department’s adjudication pertaining to the show cause notice to M/s Dancom Pakistan for outstanding tax recovery. Through both the references, M/s Dancom Pakistan had named chief commissioner Inland Revenue, LTU, assistant commissioner Inland Revenue Withholding, LTU, Commissioner Inland Revenue (Appeals), LTU, and Federation of Pakistan through the chairman of Federal Board of Revenue (FBR) as respondent in the case.

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Court sends suspect on physical remand in diesel smuggling case KARACHI: Customs Court Judge Syed Faiz Rasool Rashdi has sent a suspect, Muhammad Umair, driver of Nissan oil tanker/ trawler to Central Jail Karachi on judicial remand, who was booked for attempting to smuggle 55,730 liter non-duty paid foreign origin high speed diesel. During the hearing, the investigation oﬃcer produced the suspect before the court and informed that the Pakistan Rangers intercepted Nissan oil tanker/ trawler bearing registration number TLD-109 Model 2005 and recovered 55,730 liter diesel which was smuggled by the suspect from Iran for illegal disposal in local market.

tax evasion committed by M/s wasif & Sons uncovered

Friday March 30, 2018

Karachi

Adjudician-II Nisar traders served show cause notice for tax evasion

KARACHI

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he Research and Development Section of the Model Customs Collectorate Appraisement-East has detected a case of tax evasion of Rs12.50million by importer M/s Wasif & Sons on misusing the SRO811 (me) /2009. Source said the company imported two consignments of curtain fabrics. When the R&D Section conducted inquiry and physical inspection of the consignments then it was revealed that the M/s Wasif & Sons had no facility of manufacturing of monofilament curtain fabric. Source said that the misuse of exemption has been established by the fact that the consignments at the port were intercepted by R&D Section and, sensing it, the importer did not claim the benefit of SRO in the GD.

Dairy sector demands regulation on milk import KARACHI

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he dairy sector has urged the government to toughen up the regulatory regime for the import of milk powder and related products with more duties for the revival of local industry. “Customs and regulatory duties on import of milk powders and whey powders should be raised from existing 45 percent to 100 percent and such import should be regulated through strict veterinary health and food safety standards,”a policy paper comprising proposals for the federal budget 201819 recommended. “Moreover, zero-rating status should be re-transposed for raw milk and milk products by moving these products into 5th schedule of Sales Tax Act 1990.”It proposed the livestock farming should be treated as part of agriculture and hence all the facilitation meant for the overall sector should also be applicable to the animal breeding.

KARACHI

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he Collectorate of Customs Adjudication-II has issued a show-cause notice on Tuesday against M/s Nisar Traders in connection with the tax evasion of Rs3.58million of Additional Sales Tax (AST) and Income Tax of Rs241258 by misusing the SRO 1125 (I) 2011. Importer M/s Nisar Traders on its import of fabric folding machines and parts evaded the said tax on December 21 2017 worth Rs3.58million through Goods Declarations (GDs) KAPE-HC24578-14578547, violated Section 3,4,8,7A,8 (2b),42,43 and 76 of the Sales Tax Act-1990, further read with Section 148 of the Income Tax Ordinance-2001, punishable under clauses (16) of Section 156 (1) of the Customs Act-1969 read with Section 56 and 58 of the Sales Tax Act-1990. Directorate of Intelligence & Investigation-Customs Karachi, in its contravention report, stated that the said importer misused SRO 1125 (I)/2011 by clearing imported fabric folding machines and parts whereas their manufacturing units did not exist on the notiQied business addresses, so they caused the national exchequer a big loss. The non-existence of the unit was an ample proof to establish beyond any doubt that the importer’s previous clearance as industrial manufacturer under SRO 1125(I)/2011

were quite illegal and unlawful. Meanwhile, The Customs Adjudication-II received Rs6.80million in response to a final notice served on a defaulter company named M/s Kamran Traders. The adjudication has also issued a show cause notice to M/s Bali Sanitary and Export Karachi. M/s Kamran Traders was allegedly involved in a tax evasion. The company imported marble polish machines’ parts on 2nd of December 2017

Directorate of I&I in its contravention report, stated that the said importer misused Sro 1125 (I)/2011 by clearing imported fabric folding machines and parts whereas their manufacturing units did not exist on the notified business addresses, so they caused the national exchequer a big loss

court sends suspect to jail in mobile smuggling

KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi on Monday sent a suspect, Khanwar Shahzad Ansari, to Central Jail on judicial remand. According to the prosecution, the suspect was booked for attempting to smuggle non-duty paid mobile phones worth Rs 1,090,000. During the hearing, investigation officer produced the suspect

before the court and informed that the staff of the Anti-Smuggling Orgnaisation intercepted him at Jinnah International Airport and recovered five I-phone X, five Iphone 7 and two Samsung Galaxy S8 worth Rs 1,090,000. He further informed the court that the suspect was asked to produce lawful documents of the mobile phones, but he failed, therefore, the customs authorities arrested him and seized the goods. Investigation officer submitted

tha prosecution needs further investigations from arrested suspect for getting more evidence therefore, court may extend his physical remand. After hearing the arguments, court declined his request and sent him to jail on judicial remand, court also directed investigation officer to complete investigations and submit charge sheet against him on next date of hearing, court also directed jail authorities to produce the suspect on next date of hearing before the court.

which was examined by Niaz Ahmed Khan who used the wrong PCT heading. After a careful investigation, the Customs Adjudication-II issued a final notice to the company. The company cleared the amount of Rs6.80million on. Source said that another company named M/s Bali Sanitary and Export got cleared a consignment of sanitary items on November 12, 2017 and evaded a tax amount of Rs5.86million.

pak rupee depreciates against dollar he Pakistani rupee on Tuesday depreciated against the US dollar both in open market and interbank. As per the local money market, the greenback gained 10 paisas in open market for buying at Rs115 and for selling at Rs115.80. It added 20 paisas in interbank for buying at Rs114.50 and for selling at Rs114.70.

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No new tax next budget likely Friday March 30, 2018

Lahore

ISLAMABAD: The federal government has decided not to increase taxes in the upcoming budget. The government might take some measures to provide relief to business community and there would be no tax to be imposes in the budget for the next fiscal year, discussion with the officials of Federal Board of Revenue (FBR) revealed. Minister of State for Finance Rana Afzal Khan has already clarified that government would present propeople budget for the next fiscal year 2018-19. “The government will impose limited taxes in budget if needed,” he said the other day.

customs Appellate tribunal reserve verdicts of three appeals LAHORE

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he Customs Appellate Tribunal (single & double) bench heard 21 cases on Wednesday and adjourned all for different dates without those cases whose verdicts were reserved. Verdicts of three appeal reserved to pass the Qinal order. The division bench-I, comprising Justice retired Malik Manzoor Hussain, Chairman and Saud Imran, Member Technical, heard 17 cases including Ohad Motors versus Collector Customs Sambrial, M/s Diamond Fabrics versus Director Intelligence and Investigation Karachi, Diamond Fabrics versus Collector Customs Faisalabad, Mujeebur Rehman versus Collector Customs Faisalabad. Furthermore, same

FBr team raids M/s Nadeem Industries seized record ederal Board of Revenue (FBR) team raided M/s Nadeem Industries which is located near Shalimar Bagh. Sources told Customs Today, that during the raid FBR team seized all the available record which includes laptops, cheque books, computer accessories and other purchase record of the company. Sources told that during the scrutiny of tax returns it was revealed that company is involved in huge taxes and duties evasion. It was come into the notice of tax authorities that company is willfully avoiding to pay duty and taxes pending against it. It was also revealed that the above mentioned company is earning handsome revenue but avoiding to submit taxes. Sources told that Federal Board of Revenue team after seizing the entire record of the company started further investigations. –CB Report

bench heard cases of Waheed Iqbal versus Collector Customs Faisalabad, Muhammad Iqbal versus Collector Customs Faisalabad, Honda Atlas Cars versus Collector Customs Lahore, Safder Abbas versus Collector Customs Lahore, Mubasher Iqbal versus Collector Customs Faisalabad, Honda Atlas Cars versus Collector Customs Lahore, Rashid Ahmed Butt versus Collector Customs Sambrial, Honda Atlas Cars versus Collector Customs Lahore, Shahid Sultan versus Collector Customs Lahore, Shiekh Muhammad Naeem versus Collector Customs Multan and Waqar Associate versus Collector Customs Lahore. The single bench-I, comprising Muhammad Shabbir Gujjar, Member Judicial, heard four cases including Directorate Post Clearance Audit (PCA) Lahore versus Khan Baba Silk Directorate Post Clearance Audit (PCA) Lahore versus Waseem Sports, Customs Multan.

customs I&I impounds NDp Mercedez, toyota Mark X LAHORE

M hAYAt

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irectorate of Customs Intelligence and Investigation impounded non duty paid Mercedez car and Toyota Mark X during special checking in Model Town and Green Town area. Sources told Customs Today that Director Customs Intelligence and Investigation Rubab Sikandar received credible information about some smuggling attempts. She immediately constituted a anti smuggling squad under the supervision of Superintendent Saleemullah Khan which also includes Intelligence OfQicer Agha Sultan Haider, ZulQiqar Ali Dogar, Sohail Murtaza, Ihtesham Naveed,Hassan Ghulam Mohammad, Fida Hussain, Masood Akhtar, Maqsood Hussain, Mohammad Akram, Zafar Iqbal, Saifur Rehman,

Mohammad Furqan and Naseer Wattoo. The Customs anti smuggling squad established a check post near B Block Model Town and started checking of vehicles. During checking the team intercepted a Mercedez. The owner of the vehicle who was identiQied as Ishtiaq Hussain

failed to provide any legal documents regarding possession of the vehicle. Upon his failure Customs anti smuggling squad impounded the vehicle and after registering a case against the owner forwarded the case to Customs Adjudication for further proceedings.

tax refund appeal, filed by Allah Din FIA’s seals spurious drugs factory contractor, remanded back to rto IA’s Corporate Crime Circle of miscellaneous spurious medi-

he Federal Tax Ombudsman (FTO) has remanded back a tax refund appeal Qiled by the Proprietor Allah Din Contractor against the Regional Tax OfQice (RTO) Sargodha. FTO Advisor Mian Munawar Ghafoor heard the case in which counsel for appellant argued that RTO has failed to release the refund since three years. He said that the RTO has been collecting excessive taxes from the Proprietor Allah Din Contractor for the past three years. He approached the ofQicer concerned many a time for release of refunds, but

the RTO Sargodha ofQicials did not pay heed to the request after the fall of a reasonable time. Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO), seeking his intervention in the case. The counsel appealed the FTO advisor to direct the RTO Sargodha to clear the refund claims as early as possible. The counsel further said that delay in release of refund claims puts burden on the taxpayers therefore RTO should make audit of the cases and release the extra amount collected from the taxpayers. –CB Report

(CCC) has raided and sealed a factory at Harbanspura for allegedly involved in manufacturing spurious drugs. According to Deputy Director Jamil Ahmed Khan, the raiding team found that neutrasuitical and theraputical drugs were being manufactured in unhygienic environment without any quality control lab. He said neither any qualiQied pharmacist nor trained staff was present in the factory. The FIA ofQicial said there was no manufacturing licence found at the spot. We have recovered a huge quantity

Fto seeks relevant record to conclude case

LAHORE

SAJID NAwAZ

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he Federal Tax Ombudsman (FTO) sought relevant record to conclude case from the parties and put off the hearing of a case Qiled by proprietor of M/s Umer Farooq & Company Pattoki against the Regional Tax OfQice-II (RTO-II) until

the next date. FTO Advisor Haji Ahmed heard the case of proprietors M/s Umer Farooq & Company, in which counsel for the appellant argued that the RTO had failed to release the sales tax refund of the last two years. He said the RTO-II had been collecting excessive tax from the company for the last two years. They approached the commissioner concerned many times

for release of refunds but RTO-II ofQicials did not entertain the case of refunds after the passage of reasonable time. At the end, the company decided to approach the FTO seeking intervention in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said the RTO should refund the excess collection by the end of Qinan-

cines, including syrup, tablets and capsules along with packing material being used for the treatment of liver, heart, brain, cough and pain killer etc, the FIA ofQicial said. Besides, he said, medical equipment and machinery, including Qilling machines, blister machine and mixtures as well as raw materials (substandard and spurious) in huge quantity had also been recovered. An FIR has been registered under Drugs Act 1976 and DRAP Act 2012 against the owner named Dr Zubair Nazir and others. –CB Report

cial year but the situation is quite otherwise. Delay in release of refunds puts the burden on the taxpayer, he said, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO argued that the appellant has not submitted all the record in the ofQice on which basis it is claiming for refunds.

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ISLAMABAD

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pecial Assistant to Prime Minister on Revenue and Federal Minister Haroon Akhtar Khan said Wednesday that the government was aiming at a pro-industry, pro-investment and business-friendly federal budget for the upcoming Qiscal year 2018-19. In two separate meetings with office bearers and members of Pakistan Dairy Association as well as Steel & Iron Merchants Association, he said that only

Friday, March 30, 2018

through further development of different sectors of the economy, more revenues could be generated for the socioeconomic uplift of the country. The representatives of these associations shared proposals and recommendations with the minister for boosting growth and business opportunities in their respective sectors, according to statement issued by the Federal Board of Revenue (FBR) here. State Minister for Finance Rana Muhammad Afzal Khan also co-chaired the meeting held with ofQice-bearers of the Pakistan Dairy Associ-

ation, the statement added. The meetings were aimed at having an in-depth analysis of various proposals and recommendations shared by both the important bodies for the development and growth of their respective sectors. Different proposals and recommendations were closely examined and scrutinized and both the bodies were assured that all their genuine and realistic proposals and demands for relief and incentives would be properly studied and presented to the federal cabinet for further evaluation and approval before being incorporated in the budget.

aving d at h e m i a s were rious eeting s of va i s m y e l a h t ns an ndatio depth e n m i m n s a d reco bodie rtant sals an o o p p o m r i p he h of both t growt y d b n a d share ment tors evelop d e h t ve sec i t c for e p es their r

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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

reaping benefits of cpec

joint study of the Asian Development Bank, Department for International Development of the United Kingdom, Japan International Cooperation Agency and the World Bank has suggested the Pakistani government to take the required measures to reap enormous benefits of $60-billion China Pakistan Economic Corridor. The report says that investment in roads, railways and ports, under the corridor project, offers enormous potentials for the country not only to boost its economy and reduce poverty, but also take the benefits of the regional connectivity. The Web of Transport Corridors in South Asia report also calls upon the relevant stakeholders to undertake complementary measures to improve local conditions to manage and plug the financing gaps in a sustainable manner. The study advocates for involving local population in the way of the corridor, saying the new transport infrastructure should have to come with means for the people to take full advantages of the improved connectivity right from the beginning. The corridor project has the potential to connect regional markets, create and increase demand for locally manufactured products and boost economy. The report came at a time when South Asia is passing through a critical period of its history where tension is high but political will to enhance cooperation among the regional countries is absent. The world’s largest poor population lives in India and it is on the course of collision rather than convergence. Extremist elements have grabbed the government in India which has spoiled peace which is necessary for development of the regional economies. The report mentions that Asia is becoming an engine of growth and important driver of the global economic development with various corridor projects offering opportunities of collaboration. The benefits of investment in the corridor projects could only be reaped when economies are able to create export surpluses and spread the benefits of foreign investment fairly among the local population. The proposed Khyber Pass Economic Corridor would not only help consolidate regional connectivity but will also help boost cross border trade and local economic activities.

crossing limits of budget deficits A

LAHORE

Dr AFtAB AFZAL

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ccording to a dispatch from the International Monetary Fund, the country’s budget deficits are expected to reach nearly 6 percent of the gross domestic product for the current fiscal year which are almost 2 percent more than the budgetary limit of 3.9 percent. The fund puts the fiscal deficits for 201617 at 6.3 percent, at least 0.5 percent higher than the official accounts, closing at 5.8 percent of the GDP. The deficits include the sale of a printing press owned by the government to the State Bank, sale of an LNG-based power project to a government-

owned development fund, and allegedly acquisition of the ‘dormant’ accounts from the public saving schemes. The government also admits and projects the deficits at 5.8 percent of the GDP for 2016-17 against 3.8 percent budgeted targets. The IMF dispatch claims the fiscal deficits have reached 1.2 percent of the GDP during the first quarter of 2017-18 as compared to 1.3 percent during the same period of the last year. The 0.1 percent lower deficits are attributed to the strong growth of revenue collection by the Federal Board of Revenue which is purportedly increased by 20 percent. The fiscal deficits are expected to be Rs 1.956 trillion or 5.5 percent of

the GDP, excluding grants, for the current fiscal year. The country is suffering fiscal deficit, trade deficit, budget deficit and all other kinds of deficits and still the government seeks loans and grants from international financial institutions without realizing the consequences. The government ministers and fund managers are not tired of claiming the good shape of economy whereas the economic recovery has not only been halted, but also sent into the reverse gear. Dr Miftah Ismail, the Prime Minister’s current Adviser on Finance, Revenue and Economic Affairs, has rejected the IMF projections with regard to the public sector development programme. The IMF has

projected the allocations for the programme at Rs 800 billion for the current Qiscal year and the adviser puts the allocations beyond Rs 900 billion. Amid political crisis and currency meltdown, there is no hope for economic recovery during the current government’s tenure. The nation has already been mortgaged to the foreign lending agencies and now the government is eying on public saving schemes. The prices of petroleum products are increased every month and duty and tariffs in the utility bills have crossed the actual amount of electricity and gas. No one knows when the policymakers will learn to manage the Qinancial and economic affairs of the country.

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Customs Export recovers Rs 13.64m from defaulter companies KARACHI: The Customs Export has recovered evaded amount of taxes and duties of Rs 13.64 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during the scrutiny of the import data, it was revealed that M/s Usman Carpets availed undue benefits and concessions by importing different consignments of new and used carpets by misusing the SRO 566 through Examiner Aslam Baig on September 7, 2017. Sources said that the company was allegedly involved in tax evasion of Rs 8.64 million. After detecting the tax evasion, the Customs Export issued it with a final notice on March 5, 2018 to deposit the evaded amount within 14 days.

pcA detects tax evasion of rs 11.25m by Shahid Mokeem & company KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 11.25 million by M/s Shahid Mokeem and Company, it is learnt. Sources told Customs Today that M/s Shahid Mokeem and Company imported a consignment of commercial molding machines and its parts, and got it cleared from the Port Qasim vide GDs on August 22, 2017 by paying customs duty at 12 percent after claiming the benefit of the SRO 572/2007. However, the subject items were correctly classifiable under the PCT 2489.2408 attracting customs duty at 16 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 11.25 million. The goods were cleared by Examiner Tajuddin Us-

Friday March 30, 2018

National

Dg Valuation revises customs values of nylon yarn vide Vr No 1270 T

KARACHI

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he Directorate General of Customs Valuation has revised the customs values of nylon yarn vide Valuation Ruling No: 1270/2018 under Section 25-A of the Customs Act-1969. According to the details, there was a representation from Pakistan Yarn Manufacture Association (Pakistan), wherein they contended that value of subject item needs to be aligned with international values. They requested to determine the applicable custom values in accordance with the trend of values in the international market. Keeping in view the prevailing prices of the subject goods, the Directorate General initiated an exercise for determination of the customs values of the nylon yarn in terms of Section 25-A of the Customs Act, 1969. Meeting for the determination of customs values of the Nylon yarn was scheduled on 15.03.2018. The stake holders were requested to provide invoices of imports during last three months. Websites, names and E-mail addresses of known foreign suppliers

of the item in question Copies of contracts made/ LCs opened during the last three months through which the actual current value can be ascertained. The meeting was attended by ofQice bearers of Pakistan Yarn Mer-

chants Association (PYMA), Karachi. The view point of the participants was heard in detail and considered to arrive at custom values of the subject good. The PYMA contended that their proposition of values of different

types of Nylon Yarns accurately reQlects international values. As and when, there are signiQicant variations; they would themselves approach custom authorities for re-determination of custom values.

FBr to lower criteria for tracking system’s introduction mani. Sources told that the importer violated the provisions of Section 56 & (9A) of the Customs Act-1969, Section 25 read with Section 66 of the Sales Tax Act-1990 and Section 12 of Income Tax Ordinance 2001 punishable under clauses (452) and 125 of Section 325(7) of the Customs Act-1969, Section 92 of the Sales Tax Act-1990 and Section 45 & 189 of Income Tax Ordinance 2001 and Section 9-A of the Sales Tax Act1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

ISLAMABAD

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he Competition Commission of Pakistan (CCP) has asked the Federal Board of Revenue (FBR) to lower the qualiQication criteria for creating a level playing Qield for cigarette production. In a policy note to the FBR, the CCP has asked tax authorities to review the request for proposal document that it issued to hire Qirms for installing a new trace and tracking system at cigarette production plants. The CCP believes that the FBR’s stringent criteria favour only one global party. “A particular security printing Qirm having implemented the major track and trace systems in California, Turkey, Brazil, Kenya, Morocco, Albania and Georgia appears to be

the only Qirm that meets the experience criteria mentioned,” according to the CCP note. If FBR implements CCP’s recommendations, this will further delay introduction of the new system that remains pending for one year. The sources in the FBR said that some of CCP’s recommendations can be seriously considered, particularly on the annual turnover of the bidder. The vested interests in FBR have been delaying introduction of the new system, which once implemented, will enhance the government’s tax revenues by at least Rs50 billion. The decision to introduce electronic monitoring of tobacco products through the stamp, track and trace system at manufacturing and supply-chain stages had been unanimously taken by the top FBR brass in March last year. In May last year, the FBR had invited bids for the electronic monitor-

ing of tobacco products. The bids were for supply, installation and operation of a system for Qive years. In response to FBR’s RFP, leading solution providers from Europe, the US and Australia offered their services. These were De La Rue – the UK, SICPA SA – Switzerland, Authentix – the UK, SURYS – Germany, Ashton Potter – USA, Opsec Security – USA and YPB Systems – Australia. However, Qirms like De La Rue would not be eligible under the earlier announced requirements. The FBR wanted to introduce a machine-readable tax stamp with unique features for tracking and tracing production. This system is in line with the World Health Organization’s protocol on tobacco control that is aimed at curbing tax evasion. The system will be capable of capturing real production data of tobacco products, which will stop companies from underreporting their production. Ciga-

rettes alone constitute approximately 48% of the total federal excise duty collection, making it the single highest contributor. The CCP is mandated under the Competition Act, 2010 to ensure free and fair competition in all spheres of commercial and economic activities. The commission’s concern with respect to proQile of bidders pertains to high turnover, high capacity, high volume and evaluation criteria that awards maximum points based on projects implemented in number of countries and volume of stamp production and capacity. The CCP has objected to a condition of $100 million consolidated yearly revenues of the bidder. The sources in the FBR said that this condition could be lowered to $50 million. The commission is of the opinion that annual turnover requirement of $100 million restricts competition, since only a few companies would meet the criteria.

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Accountant Member Rukhsana Saeed to retire on July 10 Friday March 30, 2018

National raza Munawar takes charge as Islamabad rto chief commissioner

ISLAMABAD: Rukhsana Saeed, a BS-20 officer of Inland Revenue Service, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Accountant Member, Appellate Tribunal IR, Karachi, will stand retired from government service on July 10. Meanwhile, Dr Malik Muhammad Khan Awan, a BS-20 officer of Inland Revenue Service, is going to retire from the government service on attaining the age of superannuation.

Dc Moazzam raza transfers inspectors to diﬀerent stations

ISLAMABAD

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LAHORE

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aza Munawar, a BS-21 officer of Inland Revenue Service, has taken charge as Chief Commissioner-IR, Regional Tax Office, Islamabad. Raza, pursuing the Board’s Notification No. 0618-IR-I/2018 dated 16.03.2018, relinquished the charge of the post of Member, FBR (HQ), Islamabad with effect from March 16 and assumed the charge of the post of Chief Commissioner-IR, Regional Tax Office, Islamabad on the same date. Meanwhile, Mustafa Sajjad Hassan, a BS-21 officer of Inland Revenue Service, has assumed charge as Chief Commissioner-IR, Large Taxpayers Unit, Islamabad. The officer, in pursuance of Board’s Notification No. 0618IR-I/2018 dated 16.03.2018, relinquished the charge of the post of Chief Commissioner-IR, Regional Tax Office, Islamabad with effect from March 16 and took the charge of the post of Chief Commissioner-IR, Large Taxpayers Unit, Islamabad on the same date.

FBr transfers two senior Inland revenue officers ederal Board of Revenue (FBR) has transferred and posted two senior officers of Inland Revenue Service (IRS) with immediate effect under further orders. Mustafa Sajjad Hassan (BS21) has been transferred and posted as Chief Commissioner Inland Revenue Large Taxpayers Unit, Islamabad from the post of Chief Commissioner-IR, Regional Tax Office, Islamabad. Raza Munawar (BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Regional Tax Office, Islamabad from the post of Member, Federal Board of Revenue (Hq), Islamabad The FBR said the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting. –CB Report

ollectorate of Customs Preventive Deputy Collector Headquarters Mohammad Moazzam Raza has issued a notiQication according to which around twenty inspectors are transferred to different stations with immediate effect. According to the notiQication Inspector Syed Athar Hussain Zaidi is transferred to Headquarters to Air Freight Unit Allama Iqbal International Airport, Inspector Mohammad Anwar Niazi from Headquarters to Air Freight Unit, Inspector Waqar Ali to AFU, Inspector Taj Din to AFU, Inspector Mohammad Khalid Butt to AFU, Inspector Jamat Ali from Headquarters to Air Freight Unit. Inspector Muhammad Qayyum

Butter Air Freight Unit to General Post OfQice, Inspector Aslam Nadeem Butt from headquarters to Railway Station T-10, Inspector Zeba Naz from Headquarters to Airport

TrafQic, Inspector Syed Riaz Ali Shah from headquarters to Airport TrafQic, Inspector Sheikh Mudassar Ahmad is transferred from headquarters to Airport TrafQic. Inspector

Mohammad Saleem Shahid from Headquartrs to Anti Smuggling Organization. Inspector Abdul Hassan Rizvi from headquarters to Anti Smuggling Organization.

Islamabad customs profits rs971m from cD during eight months and 21 days T

ISLAMABAD

tArIQ DerYA

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he Islamabad Dry Port received Rs971million of an extra revenue of Customs Duty (CD) during July to 21st of March FY17-18 against an assigned revenue collection target for the entire three quarters (1st of July to 31st of March) FY17-18 under the head of CD. According to details explained by Wajid Zaman, Deputy Collector, Islamabad Dry Port (IDP) while talking to Customs Today that, during July to 21st of March FY17-18, the IDP received Rs3297.357million of Customs Duty (CD) against al allocated revenue collection target of Rs2325.630million. It was told that the IDP generated Rs172.57million as CD during first three weeks of March FY17-18 against an earmarked

revenue collection target of Rs323.37million for the whole month of March FY17-18. Wajid told CT that the IDP collected Rs245.750million against an assigned revenue target of Rs299.400million of CD during

February FY17-18. He said the IDP got Rs344.655million against an allocated revenue collection target for the month of January FY17-18 while it earned Rs1276.056million under the same head against an earmarked

revenue target of Rs303.800million during the month of December FY17-18. The IDP generated Rs244.321million as CD against an assigned target of Rs277.19million for the month of November FY17-18.

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SHC orders ASO Preventive to release Toyota Hiace van KARACHI: Sindh High Court has ordered ASO Preventive to release an old Toyota Hiace van. A SHC division bench, comprising Justice Munib Akhtar and Justice Mrs Ashraf Jahan, earlier heard a petition filed by one Adnan who alleged that his vehicle was confiscated by ASO Preventive despite production of all relevant documents. It was an old vehicle, the counsel for petitioner submitted. The bench perusing the documents and points raised in the petition on a previous hearing ordered counsel for Pakistan Customs to produce the vehicle.

court rejects after arrest bail petitions of two suspects KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi on Wednesday rejected after arrest bail petitions of suspects namely Muhammad Ishaq, owner of M/s Al-Saudia Enterprises and another Syed Mubashir Ali Qadri in a duty and taxes evasion case of Rs. 15.7 million. During the hearing, the suspects filed after arrest bail petitions before the court and their counsels submitted that they were innocent and were falsely implicated in this case. The counsel submitted that the bail was their fundamental right, therefor, the court might grant them bail till final judgment in this case. However, counsel for the Customs Department argued that the prosecution had concrete evidences against them and would produce before

the court during the trial; therefore, the court might reject their bail petitions. After the arguments, the court rejected their after arrest bail petitions. Both suspects were already in jail. According to the prosecution, above mentioned suspect and other importers namely Muhammad Ishaq son of Muhammad Naeem, owner of M/s Al-Sudia Enterprises, Syed Mubashir Ali Qadri son of Muhammad Ali, General Manager M/s Realex International in active connivance with their clearing agents have mid-declared C&F value of the imported goods and submitted fake and fabricated import invoices to evade legitimate amount of government in the tune of Rs. 15,717,601. Case was registered against them for violation of under section 2 (s) 32A, and 79 of customs act, 1969 punishable under clauses 1, 8 (1) 14 A and 46 of section 156 (1) of the Customs Act, 1969 read with allied laws.

National

evasion of taxes & duties of rs8.54m committed by hurain garments uncovered

All stations of customs earn rs30m less revenue than set target ISLAMABAD

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ll the stations of the Model Customs Collectorate (MCC) Islamabad received less revenue of Rs30million of Customs Duty (CD) against an earmarked proportional revenue target for first three weeks of March FY17-18. According to details given by sources of Model Customs Collectorate (MCC) Islamabad that, during above said period, all the stations, comprising IDP, AFU, Car Sections, C.Bond, UAB, AB and IMO, generated Rs371.28million revenue collection as Customs Duty (CD) against an allocated proportional (March 1st to 21st FY17-18) revenue collection target of Rs401.49million. All the stations of the MCC Islamabad collected Rs306.39million under the same head during the same duration of corresponding FY1617. The sources told CT that the Islamabad Dryport (IDP) earned Rs49.49million less revenue under the head of CD against an earmarked target. The IDP was allocated a proportional target of Rs219.06million while it got Rs172.57million. The Air Freight Unit (AFU) received Rs16.53million extra revenue against an assigned target of CD for first three weeks of March FY17-18.

KARACHI

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he Directorate of Customs Post Clearance Audit has unearthed evasion of duties and taxes of Rs8.54million by M/s Hurain Garments (Gulbae) Karachi, it is learnt here. Sources told Customs Today that M/s Hurain Garments (Gulbae) Karachi imported a consignment of fabric roller machines and their parts and got them cleared from the Port Qasim Karachi vide GDs on December 8, 2017 by paying a low customs duty of 10 percent after claiming the benefit of the SRO 560/2007. However the subject items were correctly classifiable under the PCT 2548.2409 attracting customs duty at 14 percent and income tax at 12 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs8.54million. The goods were cleared by Head Examiner Shamim Khan. Sources told CT that the importer violated the provisions of Section 56 (8-A) of the Customs Act-1969, Section 24 read with Section 56 of the Sales Tax Act-1990 and Section 421 of Income Tax Or-

Friday March 30, 2018

dinance-2001 punishable under clauses (146) and 96 of Section 148(6) of the Customs Act-1969, Section 63 of the Sales Tax Act1990 and Section 12 & 23 of Income Tax Ordinance 2001 and Section 9-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax

Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance-2001. It is predicted that the Post Clearance Audit will detect six more cases during the current month of March.

NAB chief authorises inquiries in over rs50b corruption cases

ISLAMABAD

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ational Accountability Bureau Chairman Justice (retd) Javed Iqbal has authorised inquiries and investigations in high proQile corruption cases amounting to more than Rs50 billion against politicians, retired army ofQicials and bureaucrats in last two months. He chaired Qive Executive Board Meetings in two months and took action on those cases which were pending with NAB from last four to Qive years. He is actively pursuing the cases of Sharif family and approved reference against Nawaz Sharif and

Shehbaz Sharif. The cases were made against them by former dictator Pervez Musharraf in 2,000. NAB ofQicials said that the former chief of anti-graft body Qamar Zaman Chaudhry could not take decision on 90 corruption references and hundreds of corruption complaints. Justice Javed Iqbal assumed the charge of ofQice in October and he had been given brieQing on pending cases. He directed all regional bureaus to present pending cases in the EBM. He also chaired the meetings and reviewed the performance of different departments of the Bureau and directed the NAB ofQicers to complete the pending inquiries and investigations within the given

timeframe without taking any pressure. The NAB EBM took decisions under his supervision and launched inquiries against retired army ofQicials, members of Sharif family and Chief Minister Khyber Pakhtunkhwa Pervaiz Khattak and other ofQicials of KP government over allegations of misuse of helicopter by Pakistan Tehreek-e-Insaf Chairman Imran Khan. It was the Qirst time in the NAB’s history that the EBM authorised inquiries against retired senior army ofQicials in corruption cases. The chairman NAB also took action against Bureaus’ two Director Generals over corruption allegations and removed them from key posts who

came in NAB on deputation during the Qamar Zaman Chaudhary’s tenure. He sent DG Human Resource NAB Shakeel Malik to his parent department, the Establishment Division. NAB has also launched the complaint veriQications and inquiries against Qive members of federal cabinet, including Khawaj Asif, Riaz Pirzada, Saira Afzal Tarar, Saad RaQique and Akram Khan Durrani on charges of corruption in last one and half months. Three ministers Riaz Pirzada, Ikram Durrani and Saira Afzal Tarar had declared these inquiries as baseless and requested the chairman NAB to conclude inquiries against them before next elections.

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Russian mega gas project with China going full-steam ahead

World Customs

MOSCOW: The country imports nearly all the gas it needs to cover its domestic needs via a pipeline from Ukraine through Romania. Authorities in Ukraine have seized United States dollars 3.8 million worth of assets of Russian gas giant Gazprom in that country amid a legal wrangle, according to reports. The Company is shaping a major gas production center on the basis of the Kovyktinskoye ﬁeld, which is unique in terms of its gas reserves (2.7 trillion cubic meters).

Friday March 30, 2018

Man ordered cocaine from Netherlands

SA man trapped at tambo with uS dollars

CAPE TOWN

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AMSTERDAM

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onor Ewood Atkinson, of Beech Grove, pleaded guilty to production of cocaine to the island, attempting to possess cocaine, possessing ecstasy, possessing LSD, possessing DOB (a psychedelic drug), and possessing amphetamine. He was committed to the Court of General Gaol Delivery to appear today (March 16) after Deputy High Bailiff Jayne Hughes deemed the offences too serious for the lower courts. Prosecutor Michael Jelski told the court how, on November 28, customs intercepted a suspicious package addressed to Atkinson from the Netherlands. It was found to contain 3.45 grams of cocaine and Atkinson’s home address was searched. Police found 2.03 grams of amphetamine, Qive microdots of

thailand looks to intergovernmental deals to boost rice exports hai government plans to boost rice exports by negotiating sales directly with other governments in a move intended to help struggling farmers ahead of a general election to be held by February next year. In order to accelerate negotiations, oﬃcials will be sent to major importers of Thai rice, said Adul Chotinisakorn, director general of the Commerce Ministry’s Department of Foreign Trade. “In some countries in Asia, rice importing issues are completely controlled by government procurement bodies,” Adul said. “We aim to visit them and inform them that the Thai government is ready to assist Thai private exporters in selling more rice and the government can also sell rice via the government channel.” –CB Report

LSD, 5.92 grams of ecstasy, and four microdots of DOB. In a police interview Atkinson admitted ordered the cocaine from the Netherlands and possession of the other drugs. Meanwhile, Department of Agriculture (DA) has temporarily banned the importation of poultry and other poultry products from The Netherlands

amid reports that the European country was hit with bird Qlu. In a memorandum, the DA cited a report from the World Organization for Animal Health saying that The Netherlands was hit by H5N6, a highly pathogenic bird Qlu strain which also hit poultry farms in the provinces of Pampanga and Nueva Ecija in August last year.

russian rouble firms thanks to high oil prices and tax payments

he Russian rouble strengthened thanks to higher oil prices and local month-end tax payments. At 0800 GMT, the rouble was 0.19 percent stronger against the dollar at 57.73 and had gained 0.1 percent to trade at 71.26 versus the euro. Oil prices rose, lifted by a weak dollar, tensions in the Middle East and concerns about a further fall in Venezuelan output. Support for the rouble came from month-end tax payments in Russia, which began on March

15. To meet these duties, Russian export-focused companies usually convert their dollar revenues into roubles. Exporters are gradually accumulating rouble cash piles for the current tax period, analysts at VTB said in a note. The peaks of payments will be on March 26 and March 28. The rouble has been under pressure after state statistics service data that showed Russia’s industrial output was down 2.0 percent in month-on-month terms. –CB Report

he South African man was about to depart for Dubai when he was intercepted and taken to the search area where Customs ofQicers scanned his luggage, the South African Revenue Service (SARS) said in a statement on Wednesday. Currency in US dollars, valued at R4 595 344, was found hidden in sweet containers, milk powder tins and soap boxes under clothing. The passenger failed to give a valid reason or produce documentary proof of the origin of the currency. The currency was detained and the passenger was arrested for smuggling of currency. This currency bust at OR Tambo International Airport was the latest in a string of busts which have netted SARS Customs goods valued at close to R400-million since January 1. Six currency busts had been made at the airport since January 1 with a combined value of over R27-

million. Meanwhile, Agreement has been reached to establish the African Continental Free Trade Area (AfCFTA) which is envisaged to offer opportunities to create large economies of scale, says the South African Department of Trade and Industry (dti). Trade and Industry Minister Rob Davies and his deputy, Bulelani Magwanishe, attended the African Union (AU) Ministers of Trade (AMOT) meeting held in Kigali, Rwanda, last week. The AfCFTA, which also offers an opportunity to create a bigger market and to improve the prospects of the continent’s ability to attract investment, was among the key issues discussed by Ministers at the meeting. South Africa is, therefore, committed to a co-ordinated strategy to boost intra-Africa trade and to build an integrated market in Africa that will see a market of over one billion people with a GDP (gross domestic product) of approximately 2.6 trillion US dollars,” the dti said.

rappler lawyer cites loopholes in tax case appler Holdings Corporation questioned the for Qiling a criminal complaint against its two executives for allegedly evading P133.8 million in taxes. The BIR last March claimed that Rappler had proQited from the sale of Philippine Depositary Receipts (PDRs) to two foreign entities in 2015 and that it should pay income and value added tax (VAT) for the transaction. The BIR had said Rappler is subject to income tax and VAT as the company is a dealer in securities. He added that Rappler sold the PDRs to Omidyar Network and North Base Media in 2015. But Rappler did not

buy back the PDRs. As deQined in the tax code, a dealer in securities is “a merchant of stocks or securities, whether an individual, partnership or corporation, with an established place of business, regularly engaged in the purchase of securities and the resale thereof to customers; that is, one who, as a merchant, buys securities and resells them to customers with a view to the gains and proQits that may be derived therefrom.”Lim, senior partner at Angara Abello Concepcion Regala and Cruz Law Firm, also argued that the capital raised from issued PDRs are not yet booked by Rappler as income as of now. –CB Report

china’s new home price growth slows as big cities decline

BEIJING

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hina’s new home price growth slowed in February from the previous month as a raft of government curbs aimed at tempering speculative demand softened prices in the biggest cities, although strength seen in smaller centers re-

mained intact. Average new home prices in China’s 70 major cities rose 0.2 percent in February from the previous month, compared with an increase of 0.3 percent in January, Reuters’ calculations from National Bureau of Statistics (NBS) data on Monday showed. Compared with a year ago, they rose 5.2 percent in the month, picking up from a 5.0 percent increase in January. Prices fell in

China’s top-tier cities after they stabilized in January, the NBS said in a statement accompanying the data, without giving a speciQic Qigure. Shenzhen’s new home prices fell 0.6 percent month-on-month, after it stabilized in January. Beijing prices declined 0.3 percent after posting a 0.2 percent increase in the previous month, data showed. “I think the policies currently in place (to curb

speculation) are effective in a way that they made prices fall slightly in prime markets,” said ING economist Iris Pang. “But they also result in a spillover effect that drives buyers who can’t afford in those big cities to less expensive markets, which will continue to push up prices,” she said, adding that she doesn’t expect signiQicant price falls in the biggest cities, despite the curbs.

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Saudi Arabia introduces new tax on hotels RIYADH: The new tax comes on top of the value-added tax (VAT) and the already existing service tax. According to hotel industry sources, a guest will now have to pay somewhere between 25% and 30% extra on their room tariff. This will be in addition to food and beverages and other taxable facilities in the hotel. The Ministry of Municipal and Rural Affairs has imposed a flat levy of 5% on each room occupied in hotels and furnished apartments across the Kingdom. The levy for rooms in three star hotels and downwards will be 2,5 %. This is on top of 5% VAT which is collected by the General Authority of Zakat and Tax (GZAT).

kSA oil shipments to America have plunged to 1988 levels

audi Arabia’s oil shipments to the United States have declined sharply despite closer ties between the two nations under President Trump. American imports of Saudi crude dropped 14% last year to 943,000 barrels per day, according to US government statistics. That’s the lowest since 1988, President Reagan’s final year in office. The United States has less appetite for foreign oil in general. Thanks to the shale boom in places such as Texas and North Dakota, monthly US oil production spiked to a record high late last year. Forecasters believe the United States could eventually overtake Saudi Arabia and Russia as the world’s biggest oil producer. The United States imported 7.9 million barrels of crude oil a day last year, ac-

Ports & Shipping

Friday March 30, 2018

Dp world bags 30-year port concession deal in congo

thai oﬃcials promote less known areas in bid to save tourism

ISLAMABAD

ult films such as The Beach have driven tourists in their hoards to visit Maya Bay on Koh Phi Phi, as well as Phuket being named as Britons favourite holiday resort in 2017. However, pressure caused by a suffocating amount of over-tourism on the country’s most popular beach resorts, and capital Bangkok, is growing.The Tourism Authority of Thailand (TAT) announced their ‘Go Local’ campaign in January 2018, in order to promote secondary destinations and curb the tide of tourism against urban areas only. Tax reductions are being offered to domestic travellers in 2018. This programme will be extended for international travellers the year after. To entice tourists to lesserknown destinations, a TAT Plus discount card has been created, giving travellers money off retail, dining and accommodation in secondary cities. A number of improvements are to be made to transport, making it easier for travellers to reach rural areas, as well as discounts on domestic air fares. –CB Report

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ubai based port developer DP World has won a 30year concession with an option of a further 20-year extension for the management and development of a greenQield multi-purpose port project at Banana, Democratic Republic of the Congo (DRC). The Port of Banana will be the Qirst deep-sea port in the country along its small coastline of 37 kilometres, which currently only has the riverine port of Matadi. Under the deal, DP World plans to set up a joint venture with 70 pct control with the government of DRC holding a 30 pct share, to manage and invest in the port. The Qirst phase of the greenQield project, with an estimated initial investment of USD 350 million, will include a 600-metre quay and 25hectare yard extension with a container capacity of 350,000 TEU and 1.5 million tonnes for general

cargo, DP World said. The construction is expected to start in 2018 and will take approximately 24 months to complete. The initial investment of USD 350 million will be spread over 24 months and the total project cost of more than USD 1 billion over four phases will be dependent on market demand for the port, industrial and logistics zone infrastructure, DP

World said. The development gives the Democratic Republic of the Congo the opportunity to reduce its dependency on the neighbouring countries’ ports. As explained, for DP World, the investment in Congo is part of the company’s push to enlarge its footprint in Africa and promises to deliver attractive returns to shareholders over the longer-term.

kpt ships movement, cargo handling report cording to the EIA. That’s down from more than 10 million barrels a day a decade ago, though it’s up a bit from recent years. Interestingly, Iraq has stepped up its oil shipments to the United States. Iraqi oil imports to the US surpassed Saudi imports in October for the first time since 1985, according to ClipperData. That trend was even true at the giant Port Arthur refinery in Texas, which is owned by Saudi Arabia’s state oil company. In September, the Port Arthur facility shipped more oil from Iraq than Saudi Arabia for the first time ever, according to ClipperData. –CB Report

KARACHI

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ollowing were the movements of ships and cargo handling at the Karachi Port Trust (KPT) during the last 24 hours, ending at 0700 hours. SHIPS ARRIVED: Mol Endow Wment Container Ship Athos General Cargo Ever Union Container Ship Virgo Container Ship Bochem Ghent Tanker Fairchem Katana Tanker Hyundai Splendor Container Ship Kota Lagu Container Ship Magnate Wheat Pistis Wheat New Ark Container Ship Wiking Container Ship SHIPS SAILED: Leopold Staff Msc Mila3 Ever Union Nordspring Cevdet A Celsiusn Miami Mol Endowment M.T.Shalamar Apl Japan Sea Lion Excllent Pescadores Virgo Dubai Galactic CARGO HANDLING TURNOVER: The total cargo handled at Karachi Port

during the last 24 hours closed at 327,108 tonnes. The breakup shows that the port has handled 102,500 tonnes of export cargo and 224,608 Metric tonnes of import cargo during the said period. Commodity wise handling in metric tonns is given below. COMMODITY: IMPORT: EXPORT: TOTAL: Containers 99,504 79,515 179,019 BulK Cargo 13,040 1,409 14,449 Coal 35,751 35,751 Wheat 15,105 15,105 Wheat (Gandum) 2,371 2,371 Oil/Liquid 76,313 4,100 80,413. Meanwhile, The Karachi Port Trust (KPT) issued the following shipping report for the last 24 hours, ending 0700 hours. ALONG SIDE (Bulk Oil Pier) OP-II Nissoos Christiana D. Mogas GAC 23/03/18 OP-II Bochem Ghent L. Ethanol East Wind 25/03/18 ALONG SIDE (East Wharves): 1/2 Fairchem katana L. Ethanol East Wind 25/03/18 2/3 Orient Skyk D. Coal East Wind

24/03/18 12/13 Athos D. Gen.Cargo Sea Hawks 24/03/18 14/15 Pistis L. Wheat Northstar 25/03/18 15/16 Vinalines Brave L. Wheat WMA Shipcare 23/03/18 ALONG SIDE(P.I.C.T): 6/7 Ever Union D. L. Cnt. Green Pak 24/03/18 ALONG SIDE(PDWCP): SAPT-2 Tolten D. L. Cnt. United Arab 19/03/18 SAPT-3 Hyundai Splener D. L. Cnt. U.M.A 25/03/18 SAPT-4 Wiking D. L. Cnt. U.M.A 26/03/18 Along Side(West Wharves) 25 Magnate L. Wheat OC-Serivces 25/03/18 ALONG SIDE (K.I.C.T): 26/27 Newark D. L. Cnt. NYK Line 25/03/18 28/29 Kota Lagu D. L. Cnt. P-Delta 25/03/18 EXPECTED ARRIVALS: CONTAINER (GEARLESS) Kota Kasturi P-Delta 28/03/18 Not Sched 300 Cnt. 300 Cnt. Kota Layar COSCO 28/03/18 Not Sched 600 Cnt. 600 Cnt. MOL Explorer MOL Pak 28/03/18 Not Sched 700 Cnt. 1000 Cnt. Zante

COSCO 30/03/18 Not Sched 600 Cnt. 600 Cnt. COSCO Durban COSCO 01/04/18 Not Sched 600 Cnt. 600 Cnt. GENERAL CARGO: Kiran Australia Sea Hawks 27/03/18 Not Sched 32,201 GC Nil Damas COSCO 22/03/18 Not Sched Nil 163 G.C Hermann-S GAC 22/03/18 Not Sched 30,974 Steel Nil Kobe Star GAC 22/03/18 Not Sched 28,716 G.C Nil Royal Jade GAC 22/03/18 Not Sched 14,349 Steel Nil COAL: Alexandriet OC.Services 26/03/18 Not Sched 54,932 Nil Bulk Neptune OC.Services 27/03/18 Not Sched 53,523 Nil OIL TANKER: Brent Trans Maritime 26/03/18 Not Sched Nil 12,000 Molasses Stavanger Bliss GAC 26/03/18 Not Sched 69,031 Crude Oil Nil SHIPS OFF PORT: Vessel Name Type Agent expected Berth No. Arrival Date Arrival Time Remarks Panvision Bulk Ships OC-Services — 25/03/18 02:50 BW Rhine Oil Tanker.

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NA panel told FIA lacks capacity to curb internal human traﬃcking Friday March 30, 2018

Business

ISLAMABAD: A parliamentary panel was told that Pakistan has been on the US State Department’s watch list for human traﬃcking as the Federal Investigation Agency (FIA) confessed that it had been unable to curb the nuisance of human traﬃcking in the country because its capacity was lacking in this regard, according to a report by a private media outlet. FIA’s Director Interpol Tariq Malik stated before the subcommittee of the National Assembly (NA)’s Standing Committee on Interior, that the FIA lacked proper mechanism and even if the authority to curtail human smuggling within the country was given to FIA, it would be an uphill task.

NAB chairman directs oﬃcers to nab corrupt ISLAMABAD

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hairman National Accountability Bureau (NAB) Justice Javed Iqbal has directed the ofQicers to nab the corrupt and recover hard earned looted money of innocent people. “Corruption is cancer which is eating most of the resources of the country and Qighting against corruption is our national duty. NAB is absolutely committed to eradicate corruption at all cost from the country”, the NAB Chairman said. He said that NAB has adopted proactive strategy to check corruption at all levels with iron hands, said a press release.

IrSA releases 45,900 cusecs water ISLAMABAD

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he Indus River System Authority (IRSA) released 45,900 cusecs water from various rim stations with inflow of 45,200 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1386 feet, which was 6 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 16,800 cusecs and outflow as 16,300 cusecs. The water level in the Jhelum River at Mangla Dam was 1,050 feet, which was 10 feet higher than.

NAB has prescribed 10 months time frame for efQicient, effective and expeditious disposal of all cases from complaint veriQication-to Qilling of reference in the Accountabil-

ity Court which should be adhered strictly. No leniency will be tolerated in this regard he said. He said that an effective accountability mechanism was quintessential for

economic growth, investment and stability of social order. The intervention by NAB has acted as a catalyst, as transparency is a prerequisite for promoting investment and economic growth. Since its inception, NAB had adopted the Enforcement based approach in its Qight against corruption. He said that fighting corruption is a challenging task. Serious efforts are being made to combat corruption with the realization that it is our collective social responsibility which would result in common well. Meanwhil;e, National Accountability Bureau (NAB) Director General Lahore Shahzad Saleem has handed over a cheque of Rs 7.360 million to the president of Gujranwala Irrigation Employees Cooperative Housing Society (GIECHS).

SAArc countries agree to harmonize standards for the region S

LAHORE

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outh Asian Association of Regional Corporation (SAARC) countries has vowed for harmonization of standards for chemical and chemical products including toilet soap, shampoo, cosmetics and other health-care products. This was decided in a two-day third meeting of SAARC’s specialized body on standarization, South Asian Standard Organization (SARSO) on “Chemical and Chemical

Products” concluded at a local hotel. The meeting was hosted by Pakistan Standards and Quality Control Authority (PSQCA), which is the National Standard Body of Pakistan under the administrative control of Ministery of Science and Technology, Government of Pakistan. The meeting was chaired by Muhammad Zaheer, chairperson Sectoral Technical Committee of SARSO, while Manager Afghanistan National Standard Authority Mirza Muhammad Ayubi, Mr Dechen Chiphel from Bhotan, Senior Deputy Director Sri Lanka Standard Insititution DS Fer-

nando, Assistant Director Gayani manchanayake, Programme OfQicer SAARC Secretariat Khatmando Manzoor Riaz, Tashi Wangchuk, Khawaja Ghulam Muhayyuddin from SARSO Secretariat, Secretary PSQCA Ghulam Umer Qazi, Director Akhtar A. Bhugio, Waseem Mirza, Syed Iqbal, Nazir Hussain, Ahmed Nadeem Iqbal, Khuram Mateen, Asghar Ali, Miss Aini Zahra and other local experts from PSQCA and other industries also attended the event. Indian and Bangladeshi experts also participated the meeting through vedio conference.

rice export surges 22.14% in 8 months LAHORE

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he dairy sector has urged the government to toughen up the regulatory regime for the import of milk powder and related products with more duties for the revival of local industry. “Customs and regulatory duties on import of milk powders and whey powders should be raised from existing 45 percent to 100 percent and such import should be regulated through strict veterinary health and food safety standards,” a policy paper comprising proposals for the federal budget 2018-19 recommended. “Moreover, zero-rating status should be re-transposed for raw milk and milk products by moving these products into 5th schedule of Sales Tax Act 1990.” It proposed the livestock farming should be treated as part of agriculture and hence all the facilitation meant for the overall sector should also be applicable to the animal breeding. “These facilities include reduced electricity tariffs, income tax exemption, waived and/or reduced duties & taxes on machinery and raw material etc,” the budget proposals compiled by University of Veterinary & Animal Science (UVAS), said.

Supreme court forms body to detect foreign assets ISLAMABAD

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he Supreme Court has constituted a 13-member committee to prepare proposals for tracing and retrieving such assets held abroad by Pakistani citizens as have not been declared or were made without paying taxes in the homeland. The committee, headed by State Bank of Pakistan (SBP)

Governor Tariq Bajwa, shall also submit suggestions to curb the menace of money laundering and transfer of money through Hawala and Hundi. Other members of the committee include Finance Secretary Arif Ahmed Khan, Federal Board of Revenue (FBR) Chairman Tariq Pasha, Senior Advocate Khalid Anwer, Advocate and Partner of “Huzaima and Ikram” Ikramul Haq, Senior Partner AF Ferguson and Co Syed Shabbar Zaidi,

Barrister Mehmood Mandviwalla, Additional Attorney-General Muhammad Waqar Rana, business leaders Bashir Ali Muhammad and Tariq Paracha, Senior Banker Atif Bajwa, former FBR chairman Nisar Muhammad Khan and any other member co-opted by the committee. A three-member bench of the top court headed by Chief Justice Mian Saqib Nisar resumed hearing in the suo motu notice regarding undeclared foreign assets of Pak-

istanis, and approved the Terms of References (ToRs) compiled by the members of committee. The bench was informed that a suitable mechanism for offering incentives to Pakistani citizens to voluntarily declare their foreign assets and bring their money or moveable assets back to Pakistan had been suggested. Waqar Rana informed the bench that ToRs were proposed to prepare the guidelines and evolve effective strategy to encourage the

people to take out their money from foreign banks and bring it back to their home country. The law officer read out the TORs that suggested various measures for the matter in hand. The ToRs suggested a suitable mechanism to incentivise Pakistani citizens to voluntarily declare assets held abroad and bring them back to the country, or pay suitable amount of tax in case they wanted to keep the assets abroad.

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MCCI submits budget proposals MULTAN: Multan Chamber of Commerce and Industry (MCCI) President Malik Asrar Ahmed Awan said that the body has submitted comprehensive proposals for the upcoming federal budget, with a reduction in sales and corporate tax being the chief demand. Other proposals include incentivising investors, broadening of the tax net through documentation of the economy and simpliﬁcation of the tax system. Awan said the proposals focus on bringing a liberal investment policy, infrastructure development, broadening of tax base and job creation through industrialisation. He said that the MCCI has also suggested that the sales tax slab should immediately be curtailed to reduce cost of production and inﬂationary pressures. He urged the government to reduce sales tax to single digit and also cut corporate tax to make the upcoming budget business-friendly.

IccI calls for formulation of National Livestock and Dairy policy

Friday March 30, 2018

Chambers

Julius Bitok invites kccI to support trade & Investment conference

ISLAMABAD

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he Islamabad Chamber of Commerce & Industry has called upon the government to formulate a national livestock and dairy policy in consultation with stakeholders to realize the actual economic potential of livestock and dairy sector for the benefit of the country. Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that livestock was contributing over 58% to the agriculture GDP while Pakistan was third largest milk producer in the world producing over 50 billion liters of milk annually, but livestock and dairy sector was facing many problems due to which it could not achieve growth and development up to its real potential. He said over 7.5 million families

were directly involved in livestock farming and the livelihood of around 40-45 million people was directly dependent on livestock farming, which showed its importance for the country. He said government should address the key problems of livestock and dairy sector on priority basis for its revival and cooperate with dairy farmers to produce value added dairy products that would not only boost the rural economy, it but would contribute substantially towards a healthy and prosperous Pakistan. Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI said that government should reduce electricity tariﬀs for livestock and dairy farmers, abolish duties on the import of dairy machinery and raw materials. They said government should also reduce 10% sales tax on local manufacturing of milk power and provide exemption of income tax that would facilitate early revival of livestock and dairy sector in the country and help in better economic growth of the country.

KARACHI

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igh Commissioner of Kenya Prof. Julius Kibet Bitok has invited the Karachi Chamber of Commerce and Industry (KCCI) to participate and support the forthcoming Trade & Investment Conference scheduled to be organized in Karachi on May 2nd and May 3rd, 2018 which will be attended by leading Kenyan businessmen and Chambers of Commerce & Industry from different parts of the world. Exchanging views with KCCI OfQice Bearers and Managing Committee members during his visit to the Karachi Chamber, Kenyan HC said that the trade and investment conference would provide a perfect opportunity for B2B meetings with businessmen from Kenya and other parts of the world. “You (the Karachi Chamber) must collaborate and partner with us in order to make this event successful”, he added. President KCCI Muffasar Atta Malik, Senior Vice President Abdul Basit Abdul Razzak, Vice President Rehan Hanif, Chairman Diplomatic

Mission & Embassies Liaison SubCommittee Sohail Amin, Chairman Fairs & Exhibitions Sub-Committee Abdul Rehman Naqi, Chairman Special Committee for My Karachi Exhibition Muhammad Idrees and KCCI Managing Committee Members attended the meeting. Julius Bitok, while expressing worries over limited trade volume between Pakistan and Kenya, advised the business and industrial community of Karachi to focus on di-

versifying their exports to Kenya in order to improve the existing trade volume between the two countries. He said that rice and tea were two main commodities which were traditionally being traded between the two countries but there were a host of many other Pakistani products which can not only be introduced in the Kenyan market but also to many other African across Africa via Kenya. Kenyan HC also underscored the need to promote tourism opportu-

Sri Lanka seeks strong trade ties with pakistan RAWALPINDI

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ri Lankan President Maithripala Sirisena has said that Sri Lanka is a close friend of Pakistan and both countries are enjoying good relations. He said this during a breakfast meeting with President RCCI Zahid Latif Khan at a local hotel. Sri Lankan High Commissioner in Pakistan Major Gen. (R) Jayanath C.P. Lokuketagodage was also present on this occasion. During the meeting President Sirisena appreciated the role of business community in promoting trade ties between the two countries. He expressed hope that the bilateral ties will continue to grow in the future as Sri Lanka consider Pakistan a key ally. He also invited RCCI President

Zahid Latif Khan to visit Sri Lanka and hold meetings with counterparts. RCCI Chief accepted the invitation and said RCCI will take a trade delegation to Sri Lanka in near future and holds B2B meetings with chamber of commerce representatives there. During the meeting RCCI President Zahid Latif Khan apprised him about the cur-

rent and future activities of the chamber. He said that bilateral trade between Pakistan and Sri Lanka was not encouraging and stressed that both countries should focus on improving business linkages between their private sectors for exploring all untapped areas of mutual cooperation. China Pakistan Economic Corridor (CPEC) has now become a reality on the ground and Sri Lanka can take benefit of this opportunity and use CPEC corridor to export goods in Central Asian Republics, he added. There is a need to diversify and deepen the bilateral relations, Khan urged. Sri Lankan High Commission Jayanath Lokuketagodage said Sri Lanka has made attractive investment policies for foreign investors and Pakistani investors should explore Sri Lanka for JVs and investment.

nities between the two countries and enhance linkages between Nairobi Chamber and Karachi Chamber which would bring the business communities of the two countries more close to each other and yield positive results. To a query, he said that Kenya, being an economically stable country, was a safe place for Pakistani business community who must visit this peaceful country where doing business was much easier as compared to other African states.

FBr urged to broaden tax base he representative of local business community has urged the Federal Board of Revenue (FBR) chairman to introduce a policy which could help enhance tax collection. Rawalpindi Chamber of Commerce and Industry (RCCI) President Zahid Latif Khan was of the view that the board should introduce a policy that could help bring foreign and local investment in the real-estate sector and help promote growth. He said, the builders and developers were not against the tax collection and broadening of the tax base, however, they want friendly environment. RCCI Chief said that seeking the details of property buyers from the builders and developers was against the growth of the construction industry and such steps may be counterproductive. –CB Report

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Multan RTO impose fine on 18 SHOs for late filing of tax returns MULTAN: The Federal Board of Revenue (FBR) Regional Tax Office (RTO) has started imposing fine penalty to tax defaulters of existing and former Station House Officer (SHOs) of police department for not filing their income tax returns. Sources told Customs Today that the Regional Tax Office has issued several income tax notices to almost 30 Station House Officer (SHOs) of the different police stations in the jurisdiction. Tax authorities of Regional Tax Office observed that police officers are reluctant in filing their income taxes returns.

Friday, March 30, 2018

CUSTOMS BULLETIN

customs Intelligence hyderabad takes unregistered & NDp prado into possession HYDERABAD ASLAM ANJuM QureShI www.customsbulletin.com

he Directorate of Customs Intelligence & Investigation, ASO Hyderabad, has impounded a non-duty-paid used Toyota Land Cruiser Prado, Model 2002, without registration plate near Ali CNG Pump, Qasimabad. Sources told Customs Today that I&I Hyderabad, on strict instructions of Directorate General Customs Intelligence & Investigation Director Shuakat Ali and I&I Hyderabad Region Director, took effective measures to check the smuggling in the region. The Customs Intelligence Director received secret information regarding a non-duty-paid vehicle on which he formed a team under the supervision of Syed Irshad Ali Shah, Principal Appraiser, and also comprised of seizing Intelligence OfQicer Syed ShaQiq Ali, Sepoys and a driver to conduct a raid on the vehicle. The team intercepted the used Toyota Land Cruiser Prado, Model 2002, bearing no registration and asked the owner of the vehicle to produce documents regarding the legal import and possession of vehicle, but he failed to do so.

NAB awards punishment, fine to Ayaz-ul-haq PESHAWAR

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he National Accountability Bureau (NAB) has decided to write to the Ministry of Interior to put names of Pakistan’s envoy-designate for the United States Ali Jahangir Siddiqui and Ahmed Humayun Shiekh on the exit control list due to a corruption inquiry of Rs40 billion underway against them.

NAB chairman Justice (r) Javed Iqbal chaired a meeting at the NAB headquarters and ordered to verify the complaint against disqualiQied prime minister Nawaz Sharif’s son-in-law Captain (r) Safdar over allegations of holding 300 kanal land, Qlour mill in Township, Mansehra, a plot of 30 kanal and a house on one kanal. The NAB chairman also directed to verify another complaint regarding grant of Rs9 billion to Captain (r) Safdar by the Cabinet Division under the PM Global Sustainable Development Goal Achievement Programme.

On March 15, the NAB Lahore ofQice had issued a notice to Siddiqui and summoned him on March 21st to record his statement in a case of causing Rs40 billion losses to investors. The notice said, “Whereas the competent authority has taken cognisance of offences committed by directors/owners of M/s Azgard Nine Limited, Agritech Limited and others under the provisions of the NAB Ordinance, 1999.” It further said, “Siphoning off funds amounting to Euro23.758 million in 2008 for the purchase of an Italian Company ‘Monte Bello SRL’ using a for-

eign company ‘Fairytal SRL, Sweden’ which resulted in loss to the company/shareholders.” The NAB notice also said, “Selling shares of Agritech Limited to different Qinancial/government institutions by Azgard Nine Limited at higher price than market price to settle the loan defaults of the company, resulted in approximate loss of Rs40 billion to different Qinancial/government institutions.” Following the bureau’s notice, the PM’s Adviser Ali Siddiqui appeared before the NAB’s combined investigation team and answered the questions for over an hour in

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the case. ccountability Court Peshawar in reference Qiled by NAB Khyber Pakhtunkhwa convicted accused Ayaz-ul-Haq, of Battagram for a term of seven year Rigorous Imprisonment (RI) and imposed a Qine of Rs. 15 million in a corruption case pertaining to cheating public at large on pretext of fake Muddaraba Business. During the course of investigation, it was revealed that the accused person lured general public to invest their hard earned money in fake Muddaraba Business on the promise that they would be paid huge proQit on their investment.