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ISLAMABAD

TARIQ DERYA

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he Model Customs Collectorate Islamabad showed 75% increase of revenue under all the heads during Rirst eight months (July to February) FY17-18 against the same corresponding FY16-17 while the collectorate demonstrated 64% hike of revenue under all the heads during

the same period against the assigned revenue target for Rirst eight months of FY2017-18.

According to details explained by ZulaRikar Ali Chaudhry, Collector Model Customs Collectorate (MCC) Islamabad, that the collectorate displayed an outstanding performance during above said period under all the heads. The collectorate exhibited 45% growth of Customs Duty (CD) during Rirst eight months of FY17-18 against the same corre-

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sponding period. The collectorate gained 28% increase against an allocated revenue target for Rirst eight months of current FY17-18 he said.

Chaudhry told CT that the collectorate generated 126% more revenue as Sales Tax (ST) during eight months of FY17-18 against the same previous period. The collectorate fetched 125% extra revenue under the head of ST against an earmarked revenue target for Rirst eight months of FY17-18.

Customs Islamabad goes profitable by earning Rs5030m in eight months

Customs Export recovers evaded taxes from defaulter companies

FTO remands back tax refund appeal for hearing

DG Valuation to revise Valuation Ruling No 843/2018 on April 24

About 28 sacks of Indian contraband Guttka confiscated by Hyderabad

MCC Islamabad generated an extra amount of Rs5030million | SEE pAgE 02 |

Customs Export has recovered an evaded amountoftaxesanddutiesfromdefaulterCos | SEE pAgE 03 |

FTO has remanded back an appeal in tax refund case | SEE pAgE 04 |

DG Valuation has decided to revise Valuation Ruling No: 843/2016 on April 24 | SEE pAgE 09 |

ASO Hyderabad has confiscated 28 PP bags of Indian smuggling Guttka | SEE pAgE 16 |

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Customs Appellate Tribunal hear references filed against FBR Friday, March 9, 2018

Islamabad

ISLAMABAD: Customs Appellate Tribunal heard couple of customs matters involving field offices of Federal Board of Revenue (FBR) directed the respondents to submit their replies at the earliest.

Customs Appellate Tribunal’s bench comprising Members Tribunal, Syed Muhammad Anwar and Muhammad Nasir Khan heard the matters. M/S United Diplomatic Bonded Warehouse and M/S Danial Engineering had filed the references.

customs Islamabad goes profitable by earning Rs5030m in eight months

ISLAMABAD

ISLAMABAD

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TARIQ DERYA

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he Islamabad High Court directed the parties to submit the record of cases involving Directorate General of Intelligence and Investigation and Appellate Tribunal Inland Revenue, and dated hearing in office during recent week. The IHC Division Bench, comprising of Justice Athar Minallah and Justice Miangul Hassan, heard the matter and issued directives. The bench had earlier relisted the cases including the one filed by M/S Awan CNG Re-Filling Corporation Private Limited.

The company filed cases against the Model Collectorate of Customs. The bench had also dated in office the hearing on matters filed by DG Intelligence and Investigation against Malik Muhammad Ajmal Khan. M/s Comfort Sales Corporation had filed a case against the ATIR and Customs Department. The M/s Comfort Sales Corporation had challenged the act of recovery of said amount by Commissioner Inland Revenue of Large Taxpayers Uni Islamabad. The ATIR was also made a respondent in the case as tribunal had upheld departmental decision regarding the issuance of show cause notice and demanded recovery of outstanding tax amount under the head of Federal Excise Duty.

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he Model Customs Collectorate Islamabad generated an extra amount of Rs5030million up to 15th of February FY17-18 against an allocated revenue target during the entire Rirst eight months of FY2017-18 under all the heads.

According to details given by ZulRikar Ali Chaudhry, Collector Model Customs Collectorate Islamabad, that, during above said period, the collector received Rs13972.81million up to 15th of February FY17-18 under all the heads against an assigned revenue collection target of Rs8942.09million during eight months. Chaudhry told CT that the collectorate earned Rs4704.50million of Customs Duty (CD) up to 15th of February FY17-18 while it was earmarked Rs3876.12million for the entire eight months of FY17-18. The collectorate collected Rs6676.48million under head of Sales Tax (ST) during the said period against the assigned revenue collection target of Rs3073.44million.

The collector told the correspondent that, during Rirst seven months and 15 days of February FY17-18, the collectorate got Rs352.99million under the head of Federal Excise Duty (FED) whereas it was allocated Rs227.31million. During said period, the collectorate earned

fBR follows hectic & risk free mechanism in selection of cases for audit

Rs2238.81million under the head of Income Tax (IT) against an earmarked revenue collection target of Rs1765.22million. The collector MCC Islamabad told CT that the collectorate has geared up its efforts to generate the extra revenue for third quarter (January to March) FY1718. Meanwhile, The Anti-Smuggling Organization (ASO) Islamabad seized 5,000 kilogram of Lotrence Polyester (Plastic grains) from GT

Road, Rawat Rawalpindi.

According to details given by sources to Customs Today that Collector ZulRikar Ali Chaudhry received a tip-off about some smuggling attempts. He immediately constituted different anti-smuggling squads to enhance the vigilance in the region. The anti-smuggling squad, comprising Superintendent Malak Abid Hussan and Inspector Hafeez, intercepted a vehicle and re-

covered 5,000 kilogram of lotrence polythene from 200 cartons.

Prior to the interception of the loader, the ASO team asked the driver of the vehicle to produce the legal documents regarding the import and transportation of the loaded goods.

But the driver remained failed to provide any relevant documents. It was added that the ASO squad impounded the item along with a Mazda truck bearing registration No: LXC-873.

customs to launch e-payment module by march 15

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ISLAMABAD

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ederal Board of Revenue’s Directorate Reforms and Automation Additional Director Haris Ansari has said that Pakistan Customs is all set to launch e-payment module by March 15.

He disclosed this while speaking at the first meeting of FPCCI Standing Committee on Customs.

In his presentation on e-payment module guidelines, he said that this round-the-clock facility was being provided to importers/exporters to pay customs duties, taxes and other dues online from their bank accounts through internet banking and automated teller machines (ATM) for clearance of consignments through WeBOC system.

This facility will be available in the drop down menu for payment mode and the traders or

clearing agents may select e-payment mode then WeBOC system will submit the GD successfully and display the link “Pay duty and taxes via 1Link”, he added.

Haris said that WeBOC system would generate a unique 20 digit Payment Slip ID (PSID) and display the duty and taxes breakup along with PSID, adding that the trader shall login to the online banking system or visit ATM facility and the bill payment screen of the bank shall reflect “FBR” as

biller. Moreover, he said that after entering PSID, the payment details would be visible to the trader for approval of the payment of duty & taxes and then the bank account of traders shall be debited and a message of successful transaction shall be visible on the screen and WeBOC system would accordingly process the Goods Declaration filed by the trader. He said that this facility would also allow subsequent payment of dues in

relation to the processing of Goods Declaration as a result of any reassessment made by customs and WeBOC would also issue e-CPR to the trade on the basis of PSID. Later, Muhammad Sajid, Chairman FPCCI Standing Committee on Customs lauded the efforts of the Directorate in order to provide maximum relief to the trade through e-payment module, which he believed would empower the traders to pay duty and taxes online 24×7 in no time.

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SHC issues notice on petition filed by M/s Al-Mansoor Petroleum Services KARACHI: The Sindh high Court (SHC) has issued notices to the Customs Department and deputy attorney general on a constitutional petition filed by M/s Al-Mansoor Petroleum Services and others, seeking release of their oil tanker loaded with 19,000 liter high speed diesel. While hearing the petition, a two-member bench, comprising Justice Munib Akhtar and Justice Omer Siyal, also directing them to file their respective para wise comments on the next date of hearing.

Shc issue notices to customs officials for march 15

Friday March 9, 2018

Karachi

customs Export recovers evaded taxes from defaulter companies

KARACHI

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he Sindh High Court has issued notices to the Customs officials for March 15 in a case pertaining to Indian fabric import case. A SHC appellate bench, comprising JusticeMunib Akhtar and Justice Mrs Ashraf Jahan, heard a lawyer appearing for the petitioner N.J Textiles which imported raw material from India. The consignment was detained by the Directorate of Intelligence and Investigations which was then challenged before the adjudicating authority. An Order in Original was also passed but the same was not implemented forcing the petitioner to file the instant petition.

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wB team to meet customs to discuss tax reforms KARACHI

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ifferent financial institution of the world are showing confidence in the economy of the Pakistan and are declaring it as an Asian Tiger in upcoming future. According to the details, the World Bank has shown its trust in the stability of Pakistan’s economy whereas it seeks the government take more steps to boost tax net so that wealth of the country can be further strengthened. Reports suggest a delegation of the World Bank is expected to visit Pakistan during which it will also meet senior customs officials to discuss issues related to the taxation. The World Bank team has also contacted the customs authorities in order to further enhance the tax reform system in the country and in this regard will meet the customs officers of IOCO, Exports, Custom Collectorate Appraisement East and Custom Collectorate Appraisement West.

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KARACHI

wAQAR AhmED AnSARI www.customsbulletin.com

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he Customs Export has recovered an evaded amount of taxes and duties from defaulter companies after issuing notices to them to pay the outstanding dues. Sources told Customs Today that, during a scrutiny of the import data, it was revealed that M/s Rohail Steel availed undue beneRits and concessions after importing different consignments by misusing the SRO 562 through Examiner Usman Ali on October 17, 2017. Sources further said the company was allegedly involved in the tax evasion of Rs07million.

After detecting the tax evasion, the Customs Export served on it a Rinal notice on 1st of February 2018 to deposit the evaded amount within 14 days. After receiving the notice, the management of the M/s Rohail Steel deposited the evaded amount into the ofRicial account of the Customs Export on February 26.

On the other hand, the management of the M/s Unique Chemicals also cleared Rs5.12million of taxes and duties. Sources told the correspondent that M/s Unique Chemicals also availed undue beneRits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities issued to it a Rinal notice on February 2, 2018. After receiving the notice, the management of the M/s

Unique Chemicals deposited the evaded amount of taxes into the ofRicial account. Meanwhile, Collector Customs Export Saqib Saeed is doing an excellent job in the month of February as he has detected 17 new cases of tax evasion after January 30, 2018. Today the Customs Export has recovered evaded taxes and duties from defaulter companies after issuing notices to them. Sources told Customs Today, during a scrutiny of the import data, it was found that

After receiving the notice, the management of the m/s Rohail Steel deposited the evaded amount into the official account of the customs Export

pcA detects tax evasion by Reliance garments

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KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 11.55 million by M/s Reliance Garments Hyderabad, it is learnt.

Sources told Customs Today that M/s Reliance Garments imported a consignment of silk cloth, printed material and other goods, and got it cleared from the PICT Karachi vide GDs

on September 11, 2017 by paying customs duty very low at 8 percent after claiming the beneRits of the SRO 567/2007. However, the subject goods were correctly classiRiable under the PCT 2547.2509 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classiRication, the company evaded/short-paid Rs11.55 million.

The goods were cleared by Head Examiner Mubushir Khan. Sources told that the importer violated the provisions of Section 58 of the Customs Act-

1969, Section 89 read with Section 24 of the Sales Tax Act-1990 and Section 254 of Income Tax Ordinance 2001 punishable under clauses (248) and 149 of Section 249(8) of the Customs Act-1969, Section 28 of the Sales Tax Act-1990 and Section 98 & 365 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.

the M/s Hamza Marble International availed undue beneRits and concessions by importing different consignments of cutter and polish machines on November 16, 2017 through Examiner Shoaib Ali at the Port Qasim and misused the SRO 567. The company was founded involved in a tax evasion of Rs5.50million. After uncovering tax evasion, the Customs Export issued it with a Rinal notice to deposit the evaded amount within seven days.

Rupee depreciates against greenback he Pak rupee slightly depreciated against the US dollar in open market and remained firm in interbank. As per the local money market, the greenback gained five paisas in open currency market for buying at Rs111.90 for selling at 112.20. The dollar remained firm in interbank at Rs 110.30 for buying and Rs110.50 for selling.

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PARC, CGSS sign MoU Friday March 9, 2018

Lahore

ISLAMABAD: Pakistan Agricultural Research Council (PARC) and Centre for Global Strategic Studies (CGSS) have signed an MoU. A delegation headed by Maj Gen (r) Khalid Jaffery, HI (M), president of CGSS, visited PARC HQs Friday and attended the memorandum of understanding signing ceremony. As per terms and conditions of the memorandum, both organizations will be responsible to strengthen mutual visits, communication, expertise, and develop plans to promote cooperation between the two organizations in a broader range of areas. Both the parties will be responsible for creating awareness in agricultural development, food security and its efficient utilization among stakeholders at national level.

ASo seeks hearing of cases fTo remands back pending before the tax refund appeal for hearing Appellate Tribunal LAHORE

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ustoms Anti-Smuggling (ASO) wants early hearing of cases pending before the Customs Appellate Tribunal for long time, Customs Appellate Tribunal learnt. Customs Tribunal knows through source that Superintendent Anti Smuggling Organization (ASO) has wrote letter to Assistant Registrar, Appellate Tribunal, Customs Sales Tax and Federal Excise. ASO also sent the list of cases pending for long time and appeal for the early hearing of cases and appeal for the re-Rixing of below mentioned appeal. The case list sent the case Number 199/2011 of 40,000 liters of High Speed Diesel and the party name is Muhammad Bashir, appeal is seizure of Mazda Truck LRJ 2690,

Two customs superintendents transferred eputy Collector Customs Headquarters Mohammad Moazzam Raza has issued notification according to which two superintendents are transferred with immediate effect.

According to notification Superintendent Nasir Mehmood Tarar from Airport (Traffic) to Anti-Smuggling Organization and Superintendent Mohammad Nasir Minhas is hereby transferred from Anti Smuggling Organization to Air Freight Unit of Allama Iqbal International Airport. The notification further stated that both superintendents will stand relieved from their duties with effect from 28.2.1018 with the direction to report at their place of posting. Sources told Customs Today that Collector Customs Preventive Faiz Ahmad will undertake more transfers and postings in near future to enhance Collectorate performance of current Fiscal Year 2017-18 the sources concluded as saying. –CB Report

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case number 307/2011 case number 17/2013 Toyota Hilux , case number 61/2011 F/o Smuggled Pappy seeds against different parties. Further the cases pending, case number 49/ 2011 Noorani Steel Mills in which the party name is M/s Noorani Steel Mills, 900 mobile phone sets in which party is Muhammad Suliman, case number 208/2011 Sierra Jeep, case number 105/2014 Mitsubishi Pajero Jeep, Miscellaneous Goods, F/o smuggling Plastic 35 bags 2256, case number 166/2016 of F/o smuggling Mobil oil. Source further told that the case of seized Toyota Corolla, Toyota Corolla Cars, F/o smuggled Grease 25 Drums, Toyota Hilux Sirf, Toyota Corolla Car, Mitibusi Car which are owned by the different owners. Customs Anti Smuggling seeks quick hearing and decision of care, ASO send the list of seized goods, parties involved and the last date of hearing by the tribunal.

SAJID nAwAZ

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he Federal Tax Ombudsman (FTO) has remanded back an appeal in tax refund case.

The FTO heard the appeal Riled by M/s Adeel Packages (Private) Limited against Corporate Regional Tax OfRice (CRTO) and put off the hearing until the next date. The FTO also ordered the production of all relevant record to decide the case.

FTO Adviser Mian Munawar Ghafoor heard the case in which counsel for appellant argued that the Corporate Regional Tax OfRice (CRTO) has failed to release the tax refunds for the last two years.

He said the RTO has been collecting excessive taxes from M/s Adeel Packages (Private) Limited for the last two years. He approached the commissioner concerned many a time for

Accountability court rejects nawaz plea to record wajid statement

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ccountability Court (AC) rejected former prime minister Nawaz Sharif’s plea to record the statement of Wajid Zia, the head of Joint Investigation Team (JIT) constituted in Panama papers case, at once in all three references, including Flagship Investment, Al-Azizia Steel Mills and AvenRield property. AC judge Mohammed Bashir after hearing the arguments placed by defense counsel of the litigants reserved judgment which was announced later on the same day in

the evening. Khawaja Harris, leading counsel for Sharif family took the stance that the witness was a clever person, if his testimony was recorded separately then our defence might be weakened. Prosecutor of National Accountability Bureau (NAB) Sardar Muzaffar objected and said that defense counsel was using delaying tactics by unnecessary litigation. However the bench rejected Nawaz’s plea and issued summons for Wajid Zia to appear on March. –CB Report

the release of refunds but the CRTO ofRicials did not entertain the requests, even after the lapse of a reasonable time. At the end, the company decided to approach the FTO seeking his intervention in the case. The counsel appealed to the FTO advisor to direct the CRTO to clear the refund claims.

The counsel further said the CRTO should refund the additional collec-

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tion of taxes by the end of Riscal year.

Delay in release of refunds puts the burden on the taxpayer, he said, adding that the CRTO Lahore should audit the case and release the extra amount collected from the taxpayer.

After hearing the arguments from both sides, the FTO advisor remanded back the case of M/s Adeel Packages Private for fresh order.

3g/4g users reach 49m in pakistan he number of 3G and 4G users in Pakistan reached 49.46 million by the end of January 2018, states Pakistan Telecommunication Authority (PTA). Number of mobile phone users in Pakistan reached 145.99 million by the end of January 2018, compared to 144.52 million by December 2017, registering an increase of 1.47 million users during the period under review.

Jazz’s total count for 3G users stood at 14.546 million by January 2018, compared to 14.299 million by December 2017, registering an increase of 0.247 million. Jazz’s 4G

user numbers jumped from 1,934,752 by the end of Dec 2017 to 2,238,018 by January 2018. Zong’s 3G subscribers increased to 9.089 million by the end of January 2018, compared to 9.044 million by the end of December 2017, while the number of 4G users jumped from 4,961,350 by Dec to 5,072,443 by January. The number of 3G users on Telenor’s network increased from 10.63 million by December 2017 to 10.756 million by January 2018. Like others, the number of 4G users increased from 1,594,897 by Dec 2017 to 1,883,616 by Jan 2018. –CB Report

‘pmL-n govt brings cpEc, initiates 10,000 mw energy projects’ LAHORE

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Governor of Sindh Muhammad Zubair said that credit goes to Pakistan Muslim League-Nawaz (PML-N), government for bringing China Pakistan Economic Corridor (CPEC), and launching 10,000 megawatt power projects

to resolve loadshedding problems. The PML-N government took initiatives for restoration of peace in Karachi, he said while talking to a private news channel. Lamenting on the previous government’s performance in Karachi, he said they could not focus on improving the law and order situation there. Appreciating Punjab Chief Minister She-

hbaz Sharif for record development projects in Punjab, he said that the chief minister had made history due to excellent performance for the people of province.

Governor Sindh said that Imran Khan of Pakistan Tehrik e Insaf could not win the elections during 20 years period but he was running the party as chairman. To a question he said that it

was a challenge to bring CPEC projects to Pakistan and the credit goes to Nawaz Sharif.

Under the vision and leadership of Nawaz Sharif, motorways, energy projects, peace in Karachi, wiping out terrorism and many other development works had been completed for the benefit of the people, he added.

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Friday, March 9, 2018

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ollectorate of Customs Preventive team busted huge quantity of narcotics being smuggled to foreign country after a successfully raid at Jinnah International Airport (JIAP).

According to the details, the Collector Customs Preventive Dr Iftikhar Ahmed during a press conference informed that on the tip of higher authority the Customs Preventive team staff posted at the Departure Hall of Jinnah International Airport (JIAP) Karachi after proRiling selected the passengers and their luggage on suspicion of drugs smuggling.

On examination of the two bags 10 kilogram heroin powder was recovered from two Pakistani passengers husband and wife who are resident of Karachi.

The drugs were cleverly concealed inside the false cavity of two suitcases.

The passengers were leaving for Maldives via Dubai by a private airline. The passengers are husband and wife, both was arrested immediately, said the Collector Customs Preventive.

He said that an immediate interrogation from accused persons revealed that

other two suitcases containing heroine powder for smuggling are lying at their residence. A customs raiding party headed by the Deputy Collector Airport raided the residence of the accused at night and recovered two more suitcases each containing 5 kilogram of heroin powder has also been recovered. Collector Customs Preventive Dr

Iftekhar Ahmed while addressing a press conference said that the total recovered heroin powder comes to 20 kilogram worth Rupees 20 crore in international market. This is the biggest quantity seized from any outgoing passenger by Pakistan Customs staff at International Departures JIAP, Karachi or any other agency in last 10 years.

It is also pertinent to mention that this is the Rirst ever case in the history of Customs Collectorate of Preventive Karachi that such huge quantity has been recovered instantly in result of initial investigation a through by arrested passenger. Further investigation regarding the person who handed over the heroin concealed suitcases to the accused persons Dr e v i t n reve are still underway. FIR p e s c m n sto fere u n c o against the arrested r c o t s res llec r accused persons has ng a p e i The co r h u g i d ed of h m p i h t been lodged in the A e r a th am Iftikh tive te hat on court of law and t n e d v e e s pr f o m inform l they have been reo l t a s cu re h i manded in customs partu ity the h r e c o a D r h e t a au p) k at th A I custody for further d J e ( t t s r o gers l Airpo sta p investigations, added a n e n s o s i t a a p Collector Customs Intern ed the drugs select Jinnah g n Preventive Dr Iftikhar i ion of l c i fi p o s r u p on s Ahmed. after ggage

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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

Investment facilities need of hour

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akistan’s real estate sector has the potential to push the country into the list of first world nations. The country not only can become the Asian economic tiger within a few years but also the world economic power. The government only has to bring a paradigm shift in its economic policies, especially its policies with regard to the real estate sector.

At least 250 industries, directly or indirectly, are associated with real estate and construction sectors. Singapore pushed up its GDP by launching sprawling housing projects and the Gulf Arab nations have adopted the same method. In a desert country like Dubai, it has successfully pushed its property value equal to the New York’s Manhattan district.

Pakistan offers tremendous opportunities for local and foreign investors in tourism, hospitality and industrial sectors. The northern side of the country can become hub of tourism in the world if security is improved, investors are given tax holidays and the local population is involved in the business. After the construction of economic corridor, the region has also come to limelight in the world. The federal and provincial governments are required to launch mega infrastructural projects to give easy access to mountainous and far flung areas in the north. The government has recently slashed property valuation rates by up to 57 percent for six major cities of the country which is a good decision for investors. When it could not stop corruption and money laundering in the country, why the government had made it difficult to invest in the property sector. If corruption is there, black money is also there and let it find a place within the country rather than allowing it to fly to other countries. The reason behind the stories of Panama papers, offshore companies and Swiss bank accounts is imprudent investment polices within the country. The income tax ordinance, Customs act, and dozens of other laws are devised in a way to stop corruption, but every ordinance, act and law is ignored when it is challenged by a powerful member of the elite class. Those who want to follow the laws are discouraged and those who break the laws are free to do anything of their choice. Now the policymakers have at last come to conclusion to change the policy which allows capital flight.

current outlook of economy A

LAHORE

DR AfTAB AfZAL

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ccording to Moody’s Investors Service, the outlook Pakistan’s Rinancial sector will remain B3 (stable) for the next one and half years due to accelerated economic progress, stable funding, large holdings of lowrated government bonds by banks, modest capital levels and high asset risks. However, despite positive indicators from various sectors, the economy will remains susceptible to political instability while risk of deterioration in domestic security is also there. The rating agency has speciRically mentioned the Chinese-funded infrastructure projects as the driv-

ing force behind the economic growth which will be supported by domestic demand. The infrastructure projects could stimulate lending and help improve asset quality. Constantinos Kypreos, Moody’s Senior Vice President, opines the banks’ proRitability will remain Rlat and stable funding from customer deposits and high liquidity levels would show further strengths despite margin pressure. But the large holdings of low-rated government bonds would be the biggest challenge for the country’s banks. Another analyst believes the modest capital levels and high asset risks would be additional risks. Moody’s assessment of the stable outlook is based on Rive drivers, which in-

clude operating environment, asset risk and capital, proRitability and efRiciency, funding and liquidity and the government support. On the overall outlook of the economy, Moody’s puts the real GDP growth at 5.5 percent for 2018 and 5.6 percent for 2019.

With regard to investment in infrastructure projects, the solid domestic demand will be the main driver of economic growth, which will fuel lending growth by 12 to 15 percent for 2018. The rating agency expects the asset quality will be improved during the current macroeconomic environment and will be supported by diversiRied loan portfolios and low corporate debt of the banks. However, the asset risk would remain high due to

frailty of legal framework, inefRicient foreclosure processes and lack of information to assess the situation. The low-rated government securities would continue to expose risks in the banking sector. As a matter of fact, the international rating agencies have their own aims and objectives to assess economies of various countries, including Pakistan. Where there is little need to take their assessments seriously, there is also need to carefully understand the risks factors mentioned by them in their reports.

Pakistan is an emerging economy and all indicators are in its favour.

Looking into the real situation on the ground, it appears the government is the biggest hurdle in the development of the economy.

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FBR gets details of 17,000 govt employees from AG Office LAHORE: The Federal Board of Revenue (FBR) has obtained details of more than 17,000 government employees from the Accountant General (AG) Office to find out the non-filers.

The country’s top revenue authority got details of government officers from BS-17 to BS-22. It is being identified whether these officers are filers or non-filers. The FBR would seek details of assets of these officers in next step.

fBR follows hectic & risk free mechanism in selection of cases for audit

Thursday March 9, 2018

National

Dg Valuation to revise Valuation Ruling no 843/2018 on April 24

ISLAMABAD

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he Federal Board of Revenue (FBR) follows a hectic and risk free mechanism in the selection of cases of withholding taxes for audit. The selection of cases for audit is done by both the concerned commissioner and Federal Board of Revenue (FBR) on the basis of based on risk parameters approved by the FBR. The monthly withholding statements filed and tax deposited is reconciled in terms of applicable withholding income tax rates and the total revenue reflected in the audited accounts of the taxpayer, and if a discrepancy is found, the action is taken under relevant provision of the Income Tax Ordinance, 2001.

“Audit commences after the case is selected for audit under section 177/214C of the Income Tax Ordinance, 2001, section 7213/25 of the Sales Tax Act and section 46/42B of the FED Act, 2005” a well-placed official source at FBR told

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KARACHI

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he Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise Valuation Ruling No: 843/2016 on April 24, 2018, it is learnt Surriya Butt said the department was reviewing suggestions from various importers to set new prices of skimmed milk, powder and instant milk powder ( HS Code 0402-1000, 1092, 9020, 1902,9090). She said some valuations 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 Riled with the Customs Valuation in which change in prices of skimmed milk, powder and instant milk powder was requested. Sources further said Valuation Ruling No: 843/2016 was issued on May 2, 2016. A meeting was held with the stakeholders on 28th February 2018.

Importers were advised to furnish the import invoices of the last

three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained.

Meanwhile, Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to

revise the Valuation Ruling No: 765/2015 on April 9, 2018, it is learnt. Surriya Butt said the department was reviewing suggestions from various importers to set new prices of furnishing fabrics. She said some valuations issued in 2015 were being reviewed from the beginning. Moreover, the valuations

will be set in view of the rising prices in the international markets.

Sources told Customs Today that a petition was Riled with the Customs Valuation in which change in prices of furnishing fabrics was requested.

Sources further told CT that Valuation Ruling No: 765/2015 was issued on October 9, 2015.

punjab, Sindh may face water shortfall ISLAMABAD

Customs Today while explaining the mechanism for selection of cases for audit. “After selection of case for audit, the “Audit Manual” prescribes a pre-audit conference with the taxpayer in which scope of audit and time line for completion of audit is decided. Consequently Information Document Request (IDR) is issued for seeking relevant records and information from the tax payer” the source added. The source told that after obtaining books of accounts and documents provided by the taxpayer, an audit report was prepared, and if required, a post audit conference is again conducted with the taxpayer to apprise the taxpayer of the legal and factual discrepancies.

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ndus River System Authority (IRSA) has said that Tarbela Dam had attained its dead level of 1386 feet and Punjab and Sindh might face shortfall of approximately 70 to 80 percent in their canal systems in coming Rive to ten days. However, the shortages might be reduced in the wake of impending rainfall and enhancement of temperatures being foreseen in the catchment areas, says a press release issued by Irsa.

“Today Tarbela has attained its dead level of 1386 feet, therefore in the next 48 hours, river supplies will be adjusted as under” the press release said. Punjab will get share of 4000 cusecs from Indus and 14,000 cusecs from Jhelum-Chenab zone,

Sindh will gain 14,100 cusecs, Balochistan 4,000 cusecs and Khyber Pakhtunkhwa 2,400 cusecs so a total 38,400 cusecs will be released.

Seasonal shortages for both Punjab and Sindh would remain at 36 percent as announced by Irsa at the start of the Rabi 2017-18 season. In a clariRication about a meeting of National Assembly Standing Committee on Water held on Feb 28, Irsa said besides other matters, water related issues pertaining to the Irsa were also discussed.

In this regard, some section of press published that Chairman Irsa showed inability to close the Chashma-Jhelum (CJ) Link Canal as well as implementation of Water Apportionment Accord 1991. However, it is clariRied that Irsa chairman took stance that any member of Irsa or chairman Irsa alone can’t take any decision, as all the issues in

the authority in respect of implementation of Water Accord is settled by the votes of majority as embodied under Chapter II Clause 8 (2) of Irsa Act XXII of 1992.

As such chairman Irsa single handedly can’t take any decision.

Irsa was established in regulating and monitoring of water sources of Indus River in accordance with the Water Accord amongst the provinces. Till to date, Irsa is performing its functions vested under Irsa Act XXII of 1992 in true spirit and letter. Irsa is distributing waters will the full consent of the provinces after approval of its Advisory Committee comprising all members, members water and power, Wapda, chief engineering adviser, chairman Federal Flood Commission and secretaries irrigation and agriculture of all federating units. Regarding operationalization

of three tier formula which comprises para 14(b), para 2 and para 4 of the accord, it is clariRied that the formula was derived in 2003 with consensus of all stakeholders in Irsa Advisory Committee meeting under the chair of Nasar Ali Rajput, the then member Irsa federal/chairman Irsa who belonged to Sindh province. In the presence of grievance redressing forum of CCI, discussions at different forums may aggravate the situation and would deRinitely ignite the unrest amongst the federating units which should be avoided in the best national interact. Regarding opening of any channel/ link, it is clariRied that from October 1, 2017 to 22-02-2018 Chashma Jhelum Link Canal remained closed and Punjab was directed to cater for its TrimmuSidhnai and Panjnad Canal Systems requirements from Mangla Dam.

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Overseas Pakistanis would pay only 2% tax to bring assets back Friday March 9, 2018

National Latest ATL: 1.26m taxpayers filed income tax returns in 2017

ISLAMABAD: The overseas Pakistanis could bring their assets to the country by paying only 2 percent tax.

The federal government has decided to announce a new amnesty scheme for these overseas Pakistanis to bring back their assets abroad. Under the Declaration of Overseas Assets Amnesty Scheme, the resident and non-resident Pakistanis will bring their assets to Pakistan after declaring their bank accounts.

parliament asks fBR to report on tax relief to chinese firm

SIALKOT

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ISLAMABAD

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ederal Board of Revenue (FBR) has issued names of 1.26 million taxpayers who filed income tax returns for tax year 2017. According to the latest FBR’s Active Taxpayers List (ATL), about 160,000 taxpayers become non-filers and will be deprived of availing the benefit of lower withholding tax rates. The FBR issues ATL on March 1 every year of those taxpayers who filed their returns during the preceding tax year. The appearance of taxpayer names is mandatory for availing the reduced rate of withholding tax applicable on various transactions including bank, properties, sale/purchase of securities, motor vehicles etc. The number of return filers was 1.01 million when FBR issued ATL last year, which shows growth in return filers at 25 percent.

However, the return filers for tax year 2016 increased up to February 28 to 1.42 million.

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Appellate Tribunal decides appeal of m/s Jp constructions ustoms Appellate Tribunal has set aside the appeal filed by the M/s JP constructions and forty other complainants against Collector of Customs (Appeals) Faisalabad and others. Customs Appellate Tribunal Chairman Justice ® Malik Manzoor Hussain, heard the detailed arguments, examine record and passed the order with remarks that appeals are allowed and impugned consolidated order is set aside and matter is remitted back to the learned collector of Customs (Appeals) Lahore, strictly according to the law with within thirty days from receipt of orders.

According to history of case, the case was decided by the adjudication authority and same appeal was filed before the collector of customs who remanded back appeal to the adjudication.

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parliamentary committee has sought the details of the government’s agreement with China State Construction Engineering Corporation Limited (CSCECL), which had received Rs11 billion tax exemption from the Federal Board of Revenue (FBR).

The Senate Standing Committee on Finance and Revenue, which met under the chair of Senator Saleem Mandviwalla, has once again discussed the calling-attention notice submitted by senators for giving tax exemptions to the Chinese company, which is constructing Karachi-Peshawar Motorway (Sukkur-Multan section). The FBR on the approval of Economic Coordination Committee

had given an exemption to the tune of Rs11 billion to the Chinese Rirm .

National Highway Authority (NHA) Chairman Jawwad RaRique Malik informed the committee that government had given tax exemption to the Chinese company under

the framework of China Pakistan Economic Corridor (CPEC). Three companies had participated in the bidding process of Karachi-Peshawar Motorway (Sukkur-Multan section). However, China State Construction Engineering Corporation

Limited had offered Rs400 billion for the construction of the Motorway. The government had given tax exemption the company as it provided in other projects of the CPEC, he added. Senator Noman Wazir said that government is borrowing at higher interest rate for the CPEC projects. The volume of the loan is increasing and next generations would have to pay its price.

He accused that it was connivance of the NHA and China State Construction Engineering Corporation Limited for getting tax exemptions worth of Rs11 billion. Committee chairman Mandviwalla said that government had given the tax exemption after one and half year of the issuing tender of the project.

“Local industry is suffering due to the tax exemptions given to the Chinese companies.

customs faisalabad Appraisement earns Rs27m extra revenue during february T

FAISALABAD

nAEEm ShEIkh

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he Model Customs Collectorate Appraisement collected Rs897.376million revenue during the second month of February of Fiscal Year 2018 against the set target of Rs870.40million. So the collectorate remained plus with Rs27million. The Customs Appraisement generated customs duty (CD), sales tax (ST), income tax (IT) and federal excise duty (FED) during the above said period. According to a statistical data available with Customs Today, it received Rs278.434million as customs duty (CD) against the allocated target of Rs279.79million.

The Model Customs Collectorate, Appraisement Branch, assigned the revenue collection target of Rs576.58million as sale tax and

collected Rs610.094million. It earned Rs8.808millions of income tax during the above said period against the earmarked target of Rs13.96million. It collected

Rs0.040million as federal excise duty (FED) against the assigned target of Rs0.07million. Customs Appraisement Collector Doctor Asif Mehmood Jah says that his depart-

ment has already issued notices to a number of tax defaulters in the recent months asking them to clear the outstanding tax dues at the earliest to avoid stern action.

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SC dismisses Sharifs’ plea for wealth tax reevaluation ISLAMABAD: The Supreme Court has dismissed an application filed by the Sharif family seeking reevaluation of wealth tax on their shares in various companies.

During the court procedings, counsel for the Federal Bureau of Revenue (FBR) informed the bench that the matter regarding wealth tax had already been finalised by the apex court back in 2001. “The authorities have been collecting wealth tax as per the decision of the apex court,” he said, adding that the application held no substance. After hearing arguments from both sides, the top court decided to uphold its earlier verdict and dismissed Sharif family’s appeal.

Ihc relists four customs references filed against ATIR ISLAMABAD

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slamabad High Court on Wednesday relisted four customs matters filed against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue. A citizen, M Anwar Khan had filed four customs references against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue. IHC division bench comprising Justice Aamer Farooq and Justice Mohsin Akhtar Kiyani was hearing the matters. Meanwhile another bench also dated in office hearing on cases submitted by M/S Pakistan Tobacco Company Limited. The bench also heard another tax matter filed

by M/s Pakistan Tobacco Com-

pany Limited. The appellant had filed challenging a show cause notice issued by the Large Taxpayers Unit, Islamabad. M/s Pakistan Tobacco Company Limited had contested show cause notices issued by the field offices of Federal Board of Revenue.

According to details, M/s Pakistan Tobacco Company Limited had challenged recovery of issued to it in head of outstanding sales tax by the LTU, Islamabad. M/s Pakistan Tobacco Company Limited had submitted the department had issued the demand for the tax year 2010 in head of sales tax. Federal Board of Revenue (FBR), ofRicers of LTU including Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and Appellate Tribunal Inland Revenue (ATIR) were made respondent in the case.

National

court approves interim pre-arrest bail of suspects in betel nuts smuggling case

Appraisement East karachi detects tax evasion in clearance of aluminum scrap KARACHI

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he Model Customs Collectorate, Appraisement East, has unearthed a tax evasion of Rs6.98million in the clearance of different types of aluminum scrap imported by the M/s Naseer Vertiles.

Source told CT that Collector Appraisement East directed the R&D Section to verify the post-clearance consignment of importer M/s Naseer Vertiles. During the scrutiny, it was found that the importer willfully used the Green Channel in the clearance of the consignment of different types of aluminum scrap and caused the national exchequer a loss of Rs6.98 million in terms of duties and taxes. The sources further told the correspondent that a recovery notice has been sent to the importer before seven days. The R&D sources said the importer has also assured the Customs Appraisement of depositing the evaded amount of Rs6.98 million within seven days. Earlier, the Model Customs Collectorate of Appraisement East uncovered a tax evasion of Rs05 million in the clearance of imported curtain imported by the M/s Rafi and Sons.

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KARACHI

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he Customs Court has approved interim pre-arrest bail of suspects, Khalid Ahmed, proprietor of M/s Anees & Sons; Farhan Ahmed, proprietor of M/s Farhan Impex; and two others Ghulam Mehdi Nayani and Arif Shahban who were booked in 612,032 kilogram smuggled/ non-duty paid foreign origin betel nuts case worth Rs 1.5 billion. During the hearing, the suspects Riled bail petitions. After hearing the arguments, the court granted them bail against surety bonds of Rs 200,000 each and issued notices to the Customs Department for the next date of hearing.

Earlier, investigation ofRicer appeared before the court and submitted FIR, according to the First Information Report (FIR) on credible information report, a team of customs department raided at a private godown namely Arbaz Godown situated at plot no A-41 near, police station, SITE Karachi and recovered 8,536 bags weighing 612,032 kilogram smuggled/ non-duty paid foreign origin betel (Areca) nuts of poor quality, infested and unRit for

Friday March 9, 2018

human consumption. He informed the court that case was registered against Adnan, proprietor of M/s ABR Enterprise, Khalid Ahmed, proprietor of M/s Anees & Sons, Farhan Ahmed, proprietor of M/s Farhan Impex, Abdul Ghani Ronjah, proprietor of M/s Kiran Food Products, Farheen Irfan, proprietor of M/s Rohain Corporation, Ghulam Mehdi Nayani, Arif Shahban, Mansoor Ahmed, proprietor of M/s Dilwala & Company and others to be ascertained during the investigation. He

said that during the investigation, it was revealed that above mentioned suspects in connivance and collusion with each other and their other representatives, associates-incrime have managed to store huge quantities of smuggled non duty paid foreign origin betel nuts unfit for human consumption in the private godown under the cover of import documents for illegal disposal of the same in local market have individually and collectively violated the import policy.

govt to reduce tax on corporate sector to 20pc

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inister of State for Finance and Revenue Rana Muhammad Afzal has said that the government will announce an amnesty scheme for Pakistanis by mid-March to declare their foreign assets. He said while addressing the exporters of value-added apparel sector in a meeting held at Pakistan Hosiery Manufacturers & Exporters Association (PHMA) House, Karachi.

“Country have to pay $3 billion before June against foreign debts for which, fresh soft borrowings shall be made at lowest possible rates,” he

added. The government is also considering to enhance tax slab for existing business and salaried class from existing Rs0.4 million to Rs0.8 million and also considering to reduce tax on corporate sector from 30pc to 20pc in order to enhance the tax base. The revenue shortfall shall be covered up by bringing new taxpayers into the tax net. He further said that revenue collection has remarkably increased by 20pc and resultantly, the development portfolio has also increased as provinces are now getting bigger share.

“We intend to leave behind good foreign exchange reserves so that the caretaker government as well as

the new government do not face problem in coming years,” he added.

The economic indicators have improved and FDI and foreign buyers are also coming to Pakistan. Due to long term measures in the energy sector, the energy price will reduce by 5 cents per unit henceforth will have an impact on cost of doing business. Government is well aware of the difRiculties of exporters and is taking all possible steps to facilitate them. Valueadded apparel sector contributes the largest share in the national exports and deserves government’s highest attention. The exporters are playing imperative role to strengthen the economy and supporting the government

to curtail trade deRicit. Major chunk out of approx Rs160 billion refund claims of exporters shall be cleared which would have positive impact on exports. He was of the view that the government should meet the sectorspeciRic associations to learn about their problems and issues rather than relying on 2 or 3 trade bodies which claim themselves to represent the entire business community which is not true. He further added that he will send recommendations to the Commerce & Textile Division to revive the role of value-added textile Associations as previously played by them in previous PM Package Duty Drawback of Taxes scheme.

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World Customs

China raises anti dumping duties on MMA imports

BEIJING: China’s Ministry of Commerce (MOC) said it will impose higher antidumping measures on methyl methacrylate (MMA) imported from Singapore, Thailand and Japan.

An MOC ruling requires importers to apply anti-dumping duties at rates ranging from 10.7 percent to 34.8 percent from Wednesday, compared with the previous rates of 6.7 percent to 34.6 percent.

Friday March 9, 2018

migrant gangs handsoff policing threaten Dutch

SA analysis tax proposals in 2018/19 budget CAPE TOWN

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AMSTERDAM

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he Netherlands’ permissive drugs policy has been hailed worldwide, but immigrantdominated crime gangs are taking advantage to create a “parallel maRia society.” Yet they are not the only ones who created this crisis. A report by the Dutch police union based on interviews with 400 detectives, released last week, read less like a blueprint for tackling crime, but rather a concession of defeat. The Netherlands’ permissive drugs policy has been hailed worldwide, but immigrant-dominated crime gangs are taking advantage to create a “parallel maRia society.” Yet they are not the only ones who created this crisis. Instead, the protomulticulturalism produced an unmoored, unassimilated population, and while the Netherlands has ac-

Iran bans using dollars in import documents ran’s domestic media reported that the policy was in line with an official request by the Central Bank of Iran (CBI) and was specifically meant to address fluctuations in market rates of the dollar. IRNA news agency quoted Mehdi Kasraeipour, CBI’s director of Foreign Exchange Rules and Policies Affairs, as saying that the move had become effective from Wednesday by virtue of a letter sent to the Ministry of Industry, Mines and Trade.

US banks are still banned from dealing with Iran as part of an old US trade embargo that still remains in place. Accordingly, this is believed to have already effectively blocked any transactions with Iran which is based on US dollars because they would ultimately have to be cleared in the US. –CB Report

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tively attempted to integrate its minorities in the past three decades, there is a residual stark contrast to the local population. Meanwhile, This report presents a comprehensive overview of the fermented beverages market in the Netherlands and a forecast for its development in the next Rive years. It provides a detailed analysis of the market, its dynamics, structure, characteristics,

main players, growth and demand drivers, etc. The 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.

china’s January coal imports from Australia surge as blizzard hits

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hina’s coal imports from key supplier Australia surged in January from a year ago, customs data showed on Saturday, boosted by strong demand at utilities amid freezing weather.

The world’s top coal consumer brought in 7.94 million tonnes of coal from Australia last month, data from the General Administration of Customs showed, up 9.4 percent from a year ago.

That compares with 8.07 million tonnes in December.

Indonesian coal supplies jumped almost 40 percent in January from a year ago to 5.04 million tonnes, one of the highest monthly totals for the country since 2014.

The surge is a big recovery from December when delays at loading ports in Indonesia as a result of heavy rain slowed arrivals to just 1.7 million tonnes. –CB Report

he government’s tax proposals to fill the gap in revenue, announced in the Budget last week, have generated a lot of comment. The left has been extremely critical of the increase in VAT, from 14% to 15%, arguing that VAT is regressive, and it places an undue burden on the poor. The right, however, has applauded the tax proposals as the best that could be done in very difficult circumstances.

Sadly, there has been a lot of assumption, obfuscation and very little fact and clear thinking in evaluating these tax proposals.

Almost none of the analysis has been based on the excellent data on tax in South Africa which are publicly available.

The Budget is about more than

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just about income and expenditure. It should provide a vision for the economy, which deals with the current challenges but also offers an insight into the type of society we want to build. The key message in the 2018-19 Budget is that South Africa’s public finances are in very bad shape, and we have to find more revenue. Meanwhile, South Africa’s ruling African National Congress said the government must consider additional measures to protect the poor from the effect of higher sales tax, possibly by increasing the number of exempt items. Finance Minister Malusi Gigaba announced plans to raise the rate of value-added tax to 15 percent from 14 percent in the Feb. 21 budget, a decision criticized by the ANC’s labor union allies and civil rights groups. The National Treasury said the move was seen as the best option to plug a hole in the government’s finances and ward off further credit rating downgrades.

uk warned against digital tax n his BBC interview, Stride said that the digital age had created “a type of model of business where it’s actually difRicult, using existing tax rules, to actually apply what most people would feel was a fair level of tax to those businesses”.

“At the moment are generating very signiRicant value in the UK, typically through having a digital platform with lots of users interacting with that platform. That is driving a lot of value, so you’re looking at social media platforms, online marketplaces, internet search engines – where at the moment the tax regime is not taxing those activities fairly,” he

said. Stride said that although the government was keen to work with international partners on a new model, it was also prepared to “unilaterally enter into various changes” if this was not possible. Consultation on a UK government paper on corporate tax and the digital economy closed at the end of January. The paper, published alongside the Budget in November, set out potential short, medium and longer term solutions to the increasingly difRicult political problem of how to make sure that digital businesses pay their “fair share” of tax, based on the concept of “user-generated value”. –CB Report

Russian fruit, vegetable imports partially recovered

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hen compared to the previous year, Russian imports of fresh fruit and vegetables have increased considerably over the last year. A total of 7,1 million tonnes was imported, 17% more than in 2016. It is, how-

ever, not nearly as much as in 2013. In the year before the boycott came into force, Russia imported almost 8,5 million tonnes of fresh fruit and vegetables.

The (partial) recovery of the imports is, firstly, due to the boycott of various Turkish products being lifted in 2017. In addition, a record volume of (Ecuadorian) bananas and products from other

countries were imported. The most important of these countries are China, Egypt, Azerbaijan, and Moldavia. The record volume of banana imports is particularly noticeable. Last year, Russia surpassed Germany and is now the second largest importer of bananas in the world, besides the United States. Russia also imported a record volume of mandarins, it’s

second most popular import product. Russia is by far this product’s most important import country.

Russia’s import volumes of all other regularly consumed products also rose in 2017. This country’s import volumes of lesserknown products, such as kaki, garlic, watermelon, celery, avocado, and mangoes, also reached record highs in the past year.

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KPT ships movement and cargo handling report KARACHI: Following 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: Sima Genesis Container Ship COSCO Durban Container Ship CMB Virginie General Cargo Glorious Tanker Oriental Sakura Tanker SHIPS SAILED: Wie Chi Lian Le Hu Newark Los Angeles Trader Al Mahboobah Cargo Handling Turnover: The total cargo handled at Karachi Port during the last 24 hours closed at 115,005 metric tonnes. The breakup shows that the port has handled 28,051 metric tonnes of export cargo and 86,954 metric tonnes of import cargo during the said period. Commodity wise handling in metric tons is given below.

Exporters talk chinese ban’s operational and financial impacts uring a plenary session at the Plastics Recycling Conference last week, major exporters opened up about alternative markets, quality improvements, and operational and contractual changes they’ve made in response to China’s import restrictions. Although some exporters say they’re waiting to see whether China makes more changes before adjusting their operations, others, including the nation’s largest hauler, are moving forward under the assumption China maintains its current course.

As of this year, many types of scrap plastic are banned from import into China, and most materials that aren’t banned will be limited to 0.5 percent contamination beginning in March. “I don’t see China necessarily reversing

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Ports & Shipping

Banks steer European shipping towards low carbon LONDON

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fforts to green the European shipping industry have received a boost this week, with two major banks pledging to fund €300 million worth of clean tech investments in ships over the next three years. The Dutch bank ING and the European Investment Bank (EIB) will each contribute €150 million to retroRit existing vessels so that they cause less emissions and are more fuel efRicient, and to ensure that new ships are more climate friendly.

Such steps are important to reach the goals of the Paris Climate Change Agreement, given that maritime transport is responsible for around 2.5% of global greenhouse gas emissions and carbon emissions from shipping and aviation are growing at a combined rate of 3-5% annually. “I think it’s no secret that the shipping sector is a major contributor to CO2 emissions. Climate action is one of the EIB’s top priorities,

and this type of Rinancing should be seen as an incentive for ship owners to consider doing things differently.” said EIB President Werner Hoyer. The Paris Agreement’s aim is to strengthen the global response to the threat of climate change by keeping a global temperature rise well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius. Action in all areas of the economy is crucial to reach this goal. The invest-

ment money will be used for a range of projects with a green innovation element, including both the construction of new vessels or retroRitting of existing vessels. The measures will apply to inland and seagoing shipping. Isabel Fernandez, Head of Wholesale Banking at ING Bank said: “Sustainability is an important strategic priority for ING and we are very proud to partner with the EIB to encourage our shipping clients to think about more green and sustainable Rinancing options.”

Friday March 9, 2018

Shipping Activity at port Qasim hipping activity remained brisk at the Port where five ships, MSC Bilbao, MSC Elma, Newark, Jonna Pol and AlHuwaila carrying Containers, Coal and LNG were allotted berths at Qasim International Container Terminal, Multi-purpose Terminal and Engro Eelngy Terminal respectively.

Meanwhile three more ships, MSC Busan, Thor Courage and Mutai Breeze carrying Containers, Coal and Steel coil also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was recorded at the port at 71% on Monday where a total of twelve ships namely, MSC Bilbao, MSC Elma, Newark, APL Norway, Simran, Panorama, Jonna Pol, Alam Molax, YM Miranda, Yuhua Star, Al-Huwaila and Horizon were occupied at QPA berths to load/offload Containers, Bitumen, Soya been seeds, Coal, Chemicals, LNG and Palm oil during last 24 hours. Cargo throughput during last 24 hours stood at 170,615 tonnes, comprising 128,397 tonnes import cargo and 42,218 tonnes export cargo inclusive of containerized cargo carried in 4,760 Containers (TEUs), (2,538 TEUs imports and 2,222 TEUs exports) was handled at the port. –CB Report

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Intermediate goods stand at top of Iran’s imports list TEHRAN

any of the bans they have in place today, and I think we’re conducting business as though that ban is in place, 0.5 (percent) is in place,” said Brent Bell, vice president of recycling at Waste Management.

“And we have to look for, if it’s banned material, for alternative markets, and if it’s not banned material, we have to look to make that kind of quality.” Recycling leaders from Waste Management, Fosimpe SL and Newport CH International had a broad discussion of the new plastics recycling market during the conference session. They also shared their views on the driving forces behind China’s decision to restrict scrap plastics. –CB Report

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ntermediate goods shared 59.8 percent of Iran’s imported goods in terms of value in the Rirst 10 months of the current Riscal year, started March 20, 2017.

Iran imported 23.585 million tons of intermediate goods, worth $25.616 billion in the Rirst 10 months of the current Riscal year, based on latest data released by Trade Promotion Organization of Iran. The volume of the goods was equal to 77.4 percent of Iran’s total imports’ volume. Intermediate goods are products utilized to produce a Rinal or Rinished product.

These goods are sold between industries for resale or for the production of other goods.

Import of Iran’s consumer goods registered a huge rise by 66 percent

during the Rirst 10 months of the current Riscal 2017, and stood at $7.96 billion. The volume of the imported consumer goods amounted to 2.727 million tons in the 10month period compared 1.668 million tons in the same period of the preceding year. About 18.6 percent of Iran’s imported goods in the pe-

riod were consumer goods, meanwhile capital goods shared 15.5 percent of the imports in terms of value.

The value of imported capital goods reached $6.637 billion, 1.8 percent more compared to the 10month period of the preceding year.

The Islamic Republic imported 693,000 tons of capital goods, equal

to 2.3 percent of the country’s total imports in terms of volume.

Capital goods are used in producing other goods, rather than being bought by consumers. Iran imported 30.49 million tons of goods, worth $42.805 billion during the Rirst 10 months of current Riscal year (March 20-Jan. 21), which indicates 10.4 percent and 22 percent rise in terms of volume and value respectively compared to the same period of preceding year. Meanwhile, At the sixth Joint Economic Meeting between Afghanistan and Iran, ofRicials 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) ofRicials on Monday said both sides recognize the need to implement the World Road Association agreement and to lower transit costs.

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FIA arrests two human traffickers MARDAN: Federal Investigation Agency (FIA), Khyber-Pakhtunkhwa, officials arrested two alleged human traffickers from Bharicham area.

Sources in the FIA told the media that Wais Niaz, FIA AHTC Mardan team conducted a raid at Bharicham area and arrested two alleged human smugglers of Mardan.

The arrested alleged human smugglers were identified as Shah Zaman and his son Kashif Zaman.

Friday March 9, 2018

Business

Surgical goods, worth $221.298m exported ISLAMABAD

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urgical goods and medical instruments worth US$ 221.298 million were exported in Rirst seven months of current Rinancial year as compared the corresponding period of last year.

During the period from July-January, 2017-18, the exports of medical goods and surgical instruments grew by 15.27 percent as above mentioned commodities worth US$ 221.298 million exported as compared the exports of US$ 191.979 million of same period last year.

Meanwhile, cutlery goods valuing US$ 52.200 million exported in

Ajinomoto salt banned in pakistan ISLAMABAD

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last seven months as compared the exports of US$ 46.224 million,

Industry asked to upgrade itself for effective JVs and partnerships in cpEc

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he government has banned the import of monosodium glutamate also known as Ajinomoto salt for import into Pakistan. The ministry of commerce has issued SRO 266(I)/2018 dated February, 2018 to amend Import Policy Order, 2016 and added Ajinomoto salt having HS Code 2922.4210 in to negative list under Appendix A of the Import Policy Order, 2016. The items listed in Appendix A are banned and not permissible for import into Pakistan.

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showing an increase of 12.93 percent during the period under re-

view, said data of Pakistan Bureau of Statistics. During the period under review country earned US$ 615.824 million by exporting different chemicals and pharmaceutical products as compared the exports of US$ 470.060 million of same period of last year, which was up by 31.1 percent. In last seven months exports of fertilizers manufacture grew by 100 percent as country earned US$ 43.488 million by exporting about 198,214 metric tons of fertilizers manufactured as against the exports of the corresponding period of last year. During the period under review, other chemicals valuing US$ 313.04 million exported as compared the exports of US$ 217.690 million of same period last year, hence showing an increase of 43.78 percent.

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RAWALPINDI

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hairman, State Engineering Corporation (SEC) Syed Kaukab Mohyuddin has urged that the local industry should focus on its upgradation to establish effective joint ventures and partnerships in China Pakistan Economic Corridor (CPEC) with Chinese counterparts. He said this during his visit to Islamabad Chamber of Commerce and Industry (ICCI) , along with his team.

He said the industry in world had adopted 5th generation technology and machinery to grow fast, but industry in Pakistan was still operating with 2nd generation technology due to which the country was lagging behind in industrial development. He said that to catch up with the world in trade and exports, local industry should adopt latest technology and machinery otherwise it would perish in the race for progress. Highlighting the role of his organization, he said that SEC was working to promote industrialization through developing indigenous manufacturing of capital

goods and heavy machinery utilizing local resources and through acquisition of technology. He said Heavy Electrical Complex, Pakistan Machine Tool Factory, Pakistan Engineering Company and ENAR Petro-tech Services Limited were working under SEC. He said these companies have developed a strong engineering base for the design, engineering and manufacturing of variety of light, medium and heavy engineering products. He stressed that SMEs and local industry should take beneRit of the infrastructure and expertise of these companies to improve their productivity.

Investment increases by 55.87pc in 5 years ISLAMABAD

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otal investment in Pakistan increased 55.87 percent to Rs15,730.35 billion during the current government’s tenure from 2013 to 2017 as compared to Rs10,091.70 billion invested from 2009 to 2013. Officials said key infrastructure and energy related China-Pakistan Economic Corridor (CPEC) projects helped increase economic activity, which benefitted industry, agriculture, industry, textile and other sectors, due to the spill over effect. Pakistan’s investment regime is business friendly and has guiding principles that include reduction in cost of doing business, processes of doing business, and ease of doing business.

Also, creation of industrial clusters and seven Special Economic Zones, along with trade, industrial and monetary policies has provided for greater convergence, the officials said. They added that the liberal investment policy included 100 percent equity ownership, full repatriation of capital, tax breaks, and customs duty concessions on import of plant and machinery and raw materials, which further aided the business environment. Enumerating key steps taken by the current regime since June, 2013, officials said the overall investment climate has improved and encouraged Pakistani investors to invest in the country as well.

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‘Auditor general Department working to safeguard public resources’ ISLAMABAD

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uditor General of Pakistan Javaid Jehangir has said that accountability by the Department of Auditor General of Pakistan gives confidence to the public that their resources are rightfully utilized and assets are well guarded.

“The Department is planning

to move towards thematic audit and it is also realigning its structure as per functioning of public sector and first initiative has already been taken by bifurcating WAPDA Audit in to Power and Water Audit while such reforms will also be introduced in other key sectors so that Director Generals could be able to prepare holistic reports for particular themes,” said AGP while addressing the participants of Di-

rector Generals Conference. The AGP directed that all Director Generals of Field Audit Offices should submit their audit plans to AGP till April 2018 so that filed audits could be carried out in timely manner. He said the Department is becoming more focused on examining the effectiveness, economy and efficiency of government programs by conducting their performance audits and improving the quality of

performance audit reports by integrating it with thematic issues so that issues based performance audits could also be performed.

AGP further said that the Department has embarked on reform agenda to transform the organization and adapt to the rapidly changing environment in an increasing digital world. All Director Generals should orient the officials of their respective

offices about the challenges and opportunities from digitization of economy, citizen participation and new trends in service delivery, said AGP. DAGP has also devised complete action plan for monitoring the implementation of International Standards for Supreme Audit Institutions (ISSAIs) by Field Audit Offices as a serious step for quality improvement, AGP said.

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FPCCI appoints Ahsan as Chairman Standing committee on Food& Agriculture LAHORE: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) appointed Chief Executive Officer Ahsan Poultry Livestock and Agro Services (APLAS) Ahsan Sarwar, as chairman of (Central) Standing Committee on Food and Agriculture (North Region) & Vice Chairman of (Central) Standing Committee on Dairy & Dairy Products for the year 2018. The appointment for this designation was conferred to Ahsan Sarwar through a special letter by Acting President of FPCCI Syed Mazhar Ali Nasir.

APLAS is a leading enterprise offering dairy and agriculture products across Pakistan. Ahsan Sarwar expressed his gratitude, and stated: “I am very pleased and excited to represent the Dairy & Agriculture sector as the Chairman of FPCCI’s (Central) Standing Committee on Food & Agriculture and Vice Chairman of (Central) Standing Committee on Dairy & Dairy Products for the year 2018.

malik for liberal visa policy to improve pakistan-Bosnian meager trade

Friday March 9, 2018

Chambers

pSDf to produce 380,000 skilled workers by 2021

KARACHI

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mbassador of Bosnia & Herzegovina Sakib Foric has advised the business and industrial community of Karachi to explore the investment opportunities in Bosnia & Herzegovina where they can enjoy many benefits including cheaper fuel and electricity along with tax free regime and other facilities being offered through the Foreign Investment Promotion Agency (FIPA) which facilitates and supports foreign direct investment in Bosnia. Exchanging views with President KCCI Muffasar Atta Malik, Senior Vice President KCCI Abdul Basit Abdul Razzak and KCCI Managing Committee Members during his visit to

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the Karachi Chamber of Commerce and Industry (KCCI), Bosnian Ambassador added that FIPA offers practical assistance in dealing with government institutions by working directly with investors and it also assist investors to develop contacts with the public and private sector. Bosnian Ambassador informed that FIPA carries out extensive research to ensure that investors are fully aware of the opportunities available in different sectors of the Bosnian economy. “Moreover, FIPA works alongside the embassies and diplomatic missions of Bosnia & Herzegovina that can also help explore investment opportunities in Bosnia & Herzegovina. We need investors and business from your country. You must visit Bosnia & Herzegovina to see this business and tourist friendly Muslim country which is very close to European Union”, he added.

ISLAMABAD

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he Punjab Skill Development Fund (PSDF) in collaboration with Islamabad Chamber of Commerce and Industry organized a knowledge sharing seminar at ICCI. Speaking at the occasion, Jawad Khan, Chief Executive OfRicer, PSDF said that PSDF was fostering partnerships with private sector to produce skilled workers for it in Punjab. He said the chambers of commerce & industry provided good platforms for PSDF to reach out to current and future partners for the Industrial Training Programs (ITPs) in order to provide skilled and trained manpower for industry as per its requirement.

Jawad Khan said that PSDF was working in 38 districts of Punjab and in partnership with leading employers, it has so far provided skills to 250,000 youngsters in over 250 trades across ten sectors out of which 96000 were females. He said that 300 institutes were partners of PSDF in such efforts including industry, formal training institutes

and community based organizations. He said that PSDF was giving special focus to the skills development of vulnerable youth of 18-29 years from poor and backward areas so that they could get better jobs and play productive role in the private sector. He said that PSDF has sufRicient funds and its next target was to foster partnerships for

skills development of 380,000 youth by 2021 that included 40% females. He assured that PSDF in collaboration with Chamber would continue work for skilled workers for industry in order to increase its productivity. Speaking at the occasion, Muhammad Naveed, Acting President, Islamabad Chamber of Commerce & Industry said that Pak-

‘pak to be in top-10 trading partners of Italy’ LAHORE

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mbassador Italy Stefano PONTECORVO has said that Pakistan will be in the top-10 trading partners of Italy by the end of this year. Traders of both countries should be “the one” to take mutual trade to new heights.

He was talking to the LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid, Vice President Zeshan Khalil and executive committee members here at the Lahore Chamber of Commerce & Industry. Convener LCCI Standing Committee on Pak-Italy Trade & Marble Industry Chaudhry Khadam Hussain, Awas Saeed Piracha, Mian Muhammad Nawaz, Tahir Manzoor Chaudhry, Adeeb Iqbal Sheikh, Tehmina Saeed Chaudhry, Shahid

Nazir, Shahrukh Jamal, Sheikh Zafar Iqbal and Muhammad Chaudhry were also present. “We have set the basis for strong position for Italian presence in Pakistan”, the Italian Ambassador said and added that more Italian companies from Energy, Steel, Chemicals, mining and various other sectors are planning to start operations in Pakistan. He said Pakistan should take beneRit from technological advancement of Italy. Italy’s per meter value addition in textile is highest in the world and it is producing 100% energy from renewable resources. He said that Italy is establishing three centers of excellence and an initial amount of $ 1.2 million has been allocated for this purpose. Italian ambassador also called for exchange of trade delegation and participation in trade fairs & exhibitions on reciprocal basis.

The LCCI President Malik Tahir Javaid said that Italy is an important trading

partner of Pakistan in Europe which simultaneously comes at 4th place among the top importing and exporting destinations for Pakistan in European Union. He said that the balance of trade favors Pakistan and it is encouraging to see that volume of bilateral trade is being maintained over one billion dollar. We wish to maintain this favorable trend and also enhance the volume of two way trade with the help and cooperation of individuals like you. Malik Tahir Javaid said that the worth of bilateral trade of Pakistan with Italy slightly increased from dollar 1.1 billion in 2015 to dollar 1.2 billion in 2016. The rise in trade volume is due to the increase in both imports and exports.

The exports of Pakistan has increased from dollar 618 million to dollar 667 million and the imports from dollar 443 million to dollar 528 million from the year 2015 to 2016.

istan was experiencing youth bulge, but the enrolment of youth in higher secondary education was only 8 percent 92 percent were not going for higher education. He stressed that the youngsters not getting further education should be equipped with latest skills and trainings so that they could become productive citizens of the country.

fpccI opposes shifting TDAp office PCCI has expressed its deep concern over a recent discussion in the standing committee of Senate on commerce about shifting of head office of TDAP from Karachi to Islamabad. In a statement, FPCCI has stated that Karachi is the hub of trading in Pakistan and it is completely illogical to consider shifting of a trade facilitation organisation to somewhere else. Its relocating to Islamabad would only serve the purpose of the some elements who do not want to serve in Karachi and would completely render it dead for the business community in the capital city as there is negligible business activity there. If the reason for such proposal is declining exports then certain elements are misguiding the government for their own vested Interests.

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ASF arrests terrorist arrested at airport SIALKOT: Airport Security Force (ASF) has apprehended a terrorist at Sialkot Intentional Airport, who was scheduled to board a Dubai-bound flight, an official. He said that the wanted terrorist, Muhammad Arsalan, tried to leave for Dubai by flight No FZ/338. KhyberPakhtunkhwa Frontier Corps Terrorism Wing had included his name in the black list under serial number 547/2017. The accused was a resident of Bilal Town, Gujranwala, according to his document.

Friday, March 9, 2018

CUSTOMS BULLETIN

About 28 sacks of Indian contraband guttka confiscated by hyderabad customs HYDERABAD ASLAm AnJum QuREShI www.customsbulletin.com

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he Anti-Smuggling Organization (ASO) Hyderabad has conRiscated 28 PP bags of Indian smuggling Guttka valued at Rs01.1million including duties and taxes during an action near the Hala Naka Road Hyderabad during the month of February 2018. The item being smuggled from Karachi was brought to Hyderabad.

Following strict instructions by Hyderabad Customs Collector Akhlaq Ahmad Khattaq, the ASO team conducted various anti-smuggling activities to protect national exchequer. The team, headed by Additional Collector Customs Hyderabad Dr Aamer Nawaz Hamid, constituted a raiding party comprising Superintendent Customs Preventive Hyderabad Sikander Akbar Panhwar, Inspector Rana Shabaz and Sepoys, Drivers and other staff.

The team intercepted a loader near Hala Naka Road Hyderabad and recovered above said foreign origin nonduty-paid cartons. The market value of the item is Rs01.1million including duties and taxes. Prior to the recovery, ofRicials asked the driver to produce any legal document about the

possession of the item, but he was unable to produce anything legal. So

the consignment was seized. A case was registered and an investigation

was also started. After making a seizure report, the team deposited

the impounded Indian Guttka into the Hyderabad State Warehouse.

nAB chairman committed to weed out corruption ISLAMABAD

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ational Accountability Bureau (NAB) Chairman Justice (Retd) Javed Iqbal has said that NAB has chalked out a comprehensive National Anti-Corruption Strategy to eradicate corruption across the board by adopting “Accountability for All” policy as the figures of complaints,

inquiries and investigations are almost double as compared to the same period of 2017 to 2018.

The comparative figures for the last one year are indicative of hard work being put in by all ranks of NAB officers and staff in an atmosphere of renewed energy and dynamism, where fight against corruption is being taken as a national duty, Javed Iqbal said in a statement issued.The Chairman said that NAB has geared up to come up to the expectations of the nation in order to eradicate corruption with iron hands and directed all NABoffi-

cers/officials to strictly follow rules and regulations on merit and transparency according to law. He said that NAB’s Forensic Science LAB which has facilities of Digital Forensics, Questioned Documents and Fingerprint Analysis should be utilised for inquiries and investigations in order to further improve the quality of investigations in all respects.

The timeline of 10 months prescribed for efficient, effective and expeditious disposal of cases from complaint verification-toinquiry-to-investigation and finally to a reference in the Ac-

countability Court should be adhered strictly,he said. No leniency will be tolerated in this regards, he added. He said that the new concept of Combine Investigation Team is yielding effective results in which we are benefitting from the experience and collective wisdom of senior supervisory officers, a system of CIT comprising of Director, Additional Director, Investigation Officer and a Senior Legal Counsel has been put in place. This is not only lending quality to the work but also ensuring that no single individual can influence the official pro-

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ceedings of NAB , he said. He said that Transparency International (TI), PILDAT and World Economic forum have appreciated NAB’s efforts in eradication of corruption . NAB in a very short span of two years has established over 55,000 Character Building Societies in universities and colleges to create awareness against corruption which has proved very successful and now young generation is also on board and have joined hands with NAB to eradicate corruption from the country which is our common enemy, the chairman added.