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Karachi, Wed May 10, 2017
KARACHI
WAQAR AHMED
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he Directorate General of Post Clearance Audit (PCA) has unearthed tax evasion of Rs 270 million by importers. Sources at the PCA told Customs Today that on the instructions of Director PCA Gul Rehman, Deputy Director Sajid Ali Baloch and other ofUicials of PCA scrutinize 572 import consignments data
and found that the importers used wrong and/or false PCT Headings to get their consignments cleared. The goods were imported from various countries, including USA, China, Saudi Arabia, Korea and Australia. The use of false PCT Headings caused a loss of Rs 270 million to the national exchequer. The PCA issued audit observation notiUications to the offending companies but no one of the offenders respond to it. The PCA has forwarded the contravention reports to
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the concerned Adjudication Collectorate for further proceeding. Meanwhile, the Model Customs Collectorate Gawadar impounded vehicles and Iranian diesel worth Rs 70.3 million during various operations in April 2017. The customs staff following the instructions of Collector Gawadar Feroz Alam Junejo made various seizures and impounded 14 luxury vehicles worth Rs40.6 million and 400,000 liters Iranian diesel worth Rs20.7 million.
Hyderabad customs earns Rs1375.606m against target of Rs1395.26 million
Wide scope to enhance Pakistan-Oman cooperation: PM
Region requires $1.7tr/annum investment in three sectors: ADB President
Customs I&I confiscates huge quantity of non-duty paid tyres, cloth
DG Valuation issues customs values of carburetor cleaner
The MCC Hyderabad has generated Rs1375.606m customs duty and taxes | SEE pAgE 02 |
PM Nawaz has said there was a considerablescopetoenhancecooperation | SEE pAgE 03 |
Identifying major Bank’s future priorities, mainly infrastructure development , ADB | SEE pAgE 04 |
Directorate of Customs I&I Lahore has seized NDP contraband goods and articles | SEE pAgE 14 |
The DG of CustomsValuation has revised the customs values of carburetor cleaner | SEE pAgE 16 |
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Torkham Customs Station lacks basic facilities Wednesday, May 10, 2017
National
PESHAWAR: Despite contributing billions of rupees to the national revenue in the head of import and export between Pakistan and Afghanistan, the Custom Clearing Agents, Torkham chapter, is still lacking basic facilities at the Custom Station. Talking to Customs Today, President of the Custom Clearing Agents Association Hayatullah said they lack internet system, online banking system, parking lots and water facilities. He said due to lack of these facilities the clearing agents are facing numerous difficulties.
Hyderabad customs earns Rs1375.606m against target of Rs1395.26 million
KARACH
HYDERABAD
M B RAnA
ASLAM AnJuM QuRESHi
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ustoms Court Judge Syed Faiz Rasool Rashdi directed the investigation officer to complete a probe and submit a challan within the stipulated period against absconders and accused directors M/s ATS Synthetic (Pvt) Ltd, M/s Inservey Pakistan (Pvt) Ltd and owners/partners of M/s S. K. Enterprises booked in a case of filing of incorrect Import General Manifest (IGM) data in Pakistan Customs Computerized System (WeBOC) system of three different consignments to evade duty and taxes of Rs998245. During the hearing, investigation officer produced an FIR and submitted that abovementioned companies imported different types of polyester including Spl Tricot, Woven and Jersey (knitted) and directors of M/s ATS Synthetic (Pvt) Ltd imported three consignments and declared them ‘fabric’. On an information received from MCC Appraisement (West) Karachi and after investigation, it was learnt that M/s Inservey Pakistan (Private) Limited has committed a fraud by issuing fake ‘Bills of Landing’ in place of the original ones.
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he Model Customs Collectorate (MCC) Hyderabad has generated Rs1375.606million customs duty and taxes against the assigned target of Rs1395.26million during the 27 days 2017. The department collected Rs372.960million customs duty, Rs994.548million sales tax, Rs0.750million federal excise duty (Special FED) and Rs7.348million Withholding Tax (WHT) during the abovementioned period. The MCC Hyderabad received revenue of Rs1375.606million in 27 days of April 2017 and expects to achieve the target during April 2017 by Rs1395.26million customs duty (CD), Rs1.104million sales taxes (ST), Rs3.6million as federal excise duty (FED) and Rs18million as withholding taxes (WHT). So the MCC has fetched Rs1395.26million to the national treasury. The major tax sources were Hyderabad-Sukkur-Larkana division, Pakistan State Oil, Rema Cooking Oil and Hyderabad Dry Port Region, Crescent Steel Industries, Noriabad and Company, Huffaz Seamless Pipe Industries and state ware house Hyderabad. Under the supervision of Hyderabad Customs Collector Ikhlaq Ahmed Khattaq, Additional Collector (HQ) Rehmatulah Vistro, Deputy Col-
customs cour seeks challan against accused involved in tax evasion
lector Shahid Ali Abbasi and other ofUicers played an important role in revenue collection. OfUicials said the antismuggling campaign was in full swing in the region following the direction of
the Federal Board of Revenue and Collector Ikhlaq Ahmed Khattaq to streamline the national economy. The ASO also foiled various smuggling attempts and made big seizures includ-
ing non-duty paid vehicles, different cigarettes, mobile , Iranian diesel HSD and other goods worth million of rupees while revenue is expected to come from the current auction.
M/s Ayan Enterprises’ consignments released on SHc order T
KARACHI
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he Sindh High Court (SHC) has ordered release of consignments of M/s Ayan Enterprises on deposit of cash and securities equivalent to the differential amount of duty and taxes. M/s Ayan Enterprises was represented by Faisal Ghani of M/s Franklin Law Associates. The High Court advised the im-
porter one quarter of the differential amount in cash with the Nazir of the court and securities for the rest of the differential amount which comes at Rs5.09 million for three consignments imported by M/s Ayan Enterprises. According to the details of the case, M/s. Ayan Enterprises had imported consignment declared to contain BGF brand, Hydraulic Cylinders for Automotive Vehicles and Brake/wheel/Clutch/Cylinders for fork lifters from Taiwan. The im-
porters electronically Uiled Goods Declaration for clearance thereof, by self-assessing and paying upfront duty and taxes amounting to Rs.589,991. The consignment was selected for physical examination on the basis of declarations and electronically uploaded import documents. On physical examination, the printed part numbers pasted on packing of goods were tallied with manufacturers catalog of BGF of Taiwan. The Goods Declaration was accordingly processed in the light of
examination report and the provided catalogue which was also available on the website of the said manufacturer. In the meantime, while the goods were still lying at the Port/KICT within the jurisdiction of the Collectorate, a credible information was received to the effect that the importer was attempting to clear the goods/parts meant for auto vehicles in garb of machinery/fork lifter parts to evade the duty and taxes. In order to conUirm the authentic-
ity of the information the container was re-examined at KICT and through market enquiry from the local shop keepers/dealers of auto-parts, it was conUirmed that the goods contained auto parts for Toyota vehicles. Meanwhile, M/s Shams Lubricant Private Limited moved the Sindh High Court (SHC) challenging the impugned notice for attachment of its bank account for recovery of disputed amount in respect of sales tax issued by Assistant Commissioner Inland Revenue E&C Unit-6 Zone-II, Regional Tax OfUice.
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FBR urged to exempt fresh milk from withholding tax KARACHI: Federal Board of Revenue (FBR) has been asked to exempt supply of fresh milk from withholding income tax. According to the budget proposals, the purchase of fresh milk from direct grower is exempt from income tax withholding under the provisions of clause 12(a), part IV of 2nd schedule of Income Tax Ordinance 2001. Whilst if milk is purchased through commission agent, then it attract the provisions of section 233 of the ordinance where commission is subject to withholding of tax at the rate of 15 percent.
Different depts impound 22 nDp vehicles valued Rs27.5 m
Wednesday May 10, 2017
National
Wide scope to enhance pakistan-oman cooperation: pM
PESHAWAR
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he Customs Anti-Smuggling Division (North) impounded 10 NonCustoms-Duty Paid vehicles, Customs Division Hazara did one NDP vehicle, Intelligence and Special Checking Squad Peshawar impounded four NDPs and Customs Division Kohat did seven NDP vehicles during March of Financial Year 2016-17. The total value of the seized NDP vehicles is Rs27.5million. During above said period, the Customs Anti-Smuggling Division Peshawar impounded Suzuki Jimni Jeep, 2005 model, worth Rs1.5million, Toyota Fielder, 2002 model, worth Rs1.8million, Toyota Fielder car, 2004 model, Rs1.5million, Toyota Corolla, 1991 model, worth Rs0.9million.
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nAB begins probe against pak kor Bio organic company MULTAN
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ational Accountability Bureau (NAB) Multan has started an inquiry against Pak Kor Bio Organic Company on allegations of cheating people. According to details, NAB Multan received more than 30 complaints from general public alleging that officials of Pak Kor Bio Organic Company lured people on the pretext of providing them pesticides through franchise business, NAB Multan spokesman said in a statement on Monday. The company officials received bank loans in the names of affectees but failed to provide products they had promised and thus embezzled Rs 18.80 million, the release added. The amount may increase in case more affectees approach NAB Multan. NAB Multan has asked the affectees to come forward with their claims in writing along with an affidavit on Rs 20 stamp paper and documentary evidence.
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ISLAMABAD
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rime Minister Muhammad Nawaz Sharif has said there was a considerable scope to enhance cooperation between Pakistan and Oman in trade, commerce, investment and other economic sectors. He was talking to Yousuf bin Alawi bin Abdullah, Foreign Minister of Oman who called on him here at the PM House. The Prime Minister appreciated Oman’s keen interest in creating closer linkages between Pakistani and Omani sea ports. He said the possibility of launching government-togovernment and commercial Ferry Service between Pakistan and Oman would open a new sector to enhance connectivity, people-topeople contacts and PakistanOman bilateral trade. “We are also grateful to the Omani Government for taking good care of Pakistanis serving in Oman and especially those employed in Royal Omani Armed Forces,” he Prime Minister said, according to a statement released by the PM House. The Prime Minister said Pakistan attaches immense importance to its fraternal relations with Oman. He said Oman has been consistently making progress on all fronts under the leadership of His Majesty Sultan Qaboos.
He also appreciated the special importance attached to relations with Pakistan by Sultan Qaboos. He said regular political dialogue between the two countries at Foreign Ministers’ level would provide the forum for a comprehensive exchange of views on all areas of political, strategic and economic interests between Pakistan and Oman. Foreign Minister Yousuf bin Alawi bin Abdullah thanked the
prime Minister said pakistan attaches immense importance to its fraternal relations with oman. He said oman has been consistently making progress on all fronts under the leadership of His Majesty Sultan Qaboos
ASo seizes foreign origin new auto parts
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FAISALABAD
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www.customsbulletin.com he Anti Smuggling Organization (ASO) has seized 3000 kilograms foreign origin new auto parts. The market value of the seized auto parts is Rs3210325 involving customs duty and taxes Rs181321. Sources told to Customs Today, that Collector Customs Muhammad Sadiq received information regarding smuggling of foreign origin new
auto parts. Soon after receiving the information, he constituted a raiding team comprising Superintendent Dilawar Hussain, Inspectors Tanveerul Haq, Khalid Ashraf Noor, Ali Zahid and Muhammad Hayat, Muhammad Ashraf, Muhammad Yasin sepoy. The ASO team c intercepted a vehicle bearing registration no: FDR-4685 loaded with 3000 kilograms of auto spare parts and car door 4 numbers, car bonnet, nose cut of car, steering comb, hub of
car, auto fan for car They driver of the vehicle who was later identiUied as Muhammad Boota provided three GDs No: ICSIHC-2173 dated 22-3-2017, ICSI-HC1904 dated 20-02-2017, and ICSIHC-2070 dated 8-02-2017 on the spot which are found irrelevant. Therefore, the smuggled goods were seized into customs custody and brought to State Warehouse. The Customs team seized the spare parts and registered a case against the accused persons.
Prime Minister for the warm welcome extended to him and his delegation. The Foreign Minister appreciated the leadership of the Prime Minister which has put Pakistan on the path of socio-economic development, economic stability and developing the country’s infrastructure on modern lines. Advisor to the Prime Minister on Foreign Affairs Sartaj Aziz was also present during the meeting.
10 shopkeepers fined over profiteering rice control magistrate Riaz Hussain Anjum on Saturday imposed fine on ten shopkeepers over profiteering and overcharging. A spokesman for city district government said the price control magistrate conducted surprise visits to various markets in Muslim Town, Ramzan Lasani Pulli, Usmania Bridge, Kamal Pur and checked quality and sale of daily use commodities.
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Readymade garments worth $1.704b exported in 9 months ISLAMABAD: Readymade garments exports from the country during first three quarters of current financial year increased by 5.93 percent as compared the exports of the corresponding period of last year. During the period from July-March 2016-17, 24,823 thousand dozens of readymade garments worth $1.704 billion exported as against the exports of 23,704 thousand dozens valuing of $1.608 billion of same period last year. Meanwhile, the exports of madeup articles excluding towels grew by 2.97 percent in last nine months of current financial year and reached at $485.146 million.
Wednesday May 10, 2017
Business
‘Region requires $1.7tr/annum investment’ YOKOHAMA
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dentifying major Bank’s future priorities, mainly infrastructure development, President Asian Development Bank, Takehito Nakao said the region will require $1.7 trillion per year in investments in power, transport, telecommunications, and water through 2030. In his speech at the Annual Meeting of ADB Board of Governors here, Takehito Nakao said “this is more than double our previous estimate, reUlecting additional investments, needed to support continued growth and address climate change.” Listing Uive chief priorities of the Bank, the
punjab approves 3 uplift schemes LAHORE
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he Punjab Provincial Development Working Party (PDWP) has approved three development schemes of various sectors with an estimated cost of Rs29156.819 million. These schemes were approved in the 69th meeting of PDWP of current fiscal year 2016-17 presided over the Punjab P&D Chairman Muhammad Jahanzeb Khan. P&D Provincial Secretary Iftikhar Ali Sahoo, all members of the Planning & Development Board.
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ADB President said supporting infrastructure development will remain priority. In this regard “we will incorporate more advanced technologies. Our developing member countries care about maintenance costs and the resilience of infrastructure,” he added.
He said member countries increasingly aspire for innovative technologies for their projects. And many innovative companies across the world, including in emerging economies, are keen to contribute to Asia’s development. “We have already initiated reforms in our busi-
ness processes for project preparation and procurement to promote greater use of advanced technologies,” he added. Social sectors being another priority, he said in health, bank will support universal healthcare systems and cross-border initiatives to combat communicable diseases such as malaria, tuberculosis, and HIV. While in education, ADB will continue to support Technical and Vocational Education and Training, or TVET, and help improve the quality of secondary education. “We will further promote gender equality. Gender has been a key area of ADB operations for many years, even before we adopted our Uirst Policy on the Role of Women in Development in 1985,” he said adding, gender is a cross-cutting issue that inUluences all social and economic processes.
fiA Additional Director Wajid Zia to head Jit in panama case F
ISLAMABAD
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ederal Investigation Agency (FIA) Additional Director Wajid Zia will head the joint investigation team (JIT) constituted to probe the charges against Prime Minister Nawaz Sharif and his family in Panama Leaks case. The Supreme Court Friday constituted a six-member JIT, which includes Amir Aziz from State Bank of Pakistan, Irfan Naeem Mangi from National Accountability Bureau
(NAB), Brig Nauman Saeed from Inter-Services Intelligence (ISI), Brig Kamran Khurshid from Military Intelligence (MI), and Bilal Rasool from Securities and Exchange Commission of Pakistan (SECP). The apex court has already constituted a special bench headed by Justice Aijaz Afzal to monitor the JIT. Justice Sheikh Azmat Saeed and Justice Aijaz-ul-Ahsan are the other members on the bench. The JIT will report to the Supreme Court every 15 days during its probe into the Panama case. Meanwhile, The Federal Investi-
gation Agency (FIA) has initiated evaluation of a complaint lodged against Prime Minister Mian Muhammad Nawaz Sharif by a lawyer for delivering anti-army speech and a video clip in this regard has been given to the agency by the police. Action against the accused will only be taken after reaching in the depth of allegations and examining the clues and other evidences, said a senior ofUicer of FIA. The application and video clip has been forwarded by Rawalpindi police to Cyber Crimes Wing of FIA after registering a report.
pakistan produced 11.7mt poL products last year ISLAMABAD
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ocal oil refineries produced 11.7 million ton (mt) petroleum products during the last financial year, official sources in the Ministry of Petroleum and Natural Resources said Friday. “Pakistan’s crude oil/condensate production stood at 31.65 million barrels, natural gas 1.48 trillion cubic feet and Liquefied Petroleum Gas (LPG) during the last year,” they told APP. The present POL products’ consumption of the country, they informed, was around 24 Million Ton Per Annum (MTPA), while crude/condensate processable by oil refineries was around 3.6 MTPA which was just 15 percent of total country’s need and remaining 85 percent requirements were met through import. Answering a question, they said, Pakistan was making concerted efforts to achieve self-reliance in crude oil production as the government had accelerated exploration of indigenous hydrocarbon resources over the last three years. “Capacity to produce crude oil and its indigenous refining is increasing gradually. Now, the country has started moving on the path of achieving self reliance in the sector. Pakistan’s total crude oil production is around 85,000 barrels per day,” they said.
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Budget tracker Mobile Application launched LAHORE
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n a ceremony held at Lahore “CPDI Budget Tracker” mobile application has been launched by Centre for Peace and Development Initiatives (CPDI). Inaugurated by Abdul Razaq Dhillon, Chairperson Provincial Assembly Standing Committee on Local Government, the application is a Uirst of its kind not only
in Pakistan but also in the entire Asian region. Speaking at the occasion Chairperson Provincial Assembly Standing Committee appreciated CPDI’s initiative and said that this would enable citizens to easily access largest budget data ever in Pakistan. The access to district development budget will not only increase transparency and public participation in local governance but will also prove to be a great step towards strengthening local gov-
ernments, the chief guest said. According to Mr. Razaq launching of CPDI Budget Tracker Mobile App was in line with the vision of the provincial government that was rapidly advancing on e-governance and was using the cyber space to improve its service delivery and make governance more inclusive. While speaking on the occasion the Executive Director CPDI, Mr. Amer Ejaz said that the idea behind CPDI Budget Tracker App was to cre-
ate, a Uirst of its kind, online platform that would provides segregated but complete development budget information for the use of the citizens of Pakistan. The uniqueness of this application is that it facilitates the user in knowing about the development projects of his/her districts as well as desired department in a particular province, said Mr. Ejaz. He further reiterated CPDI’s resolves to provide the users, the citizens and budget researchers with
best experience of budget tracking and expressed the hoped that this app would play a pivotal role in increasing common man’s interest in the budget documents and related issues. While explaining the features of the CPDI Budget Tracker, Raja Shoaib Akbar Program Manager CPDI said that this mobile app would give the user options to choose various Uilters while accessing the complete development budget information of the four provinces.
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akistan Customs’ intelligence wing has seized huge quantity of smuggled Indian grey cloth en route from India to Lahore via Dubai. Directorate General Intelligence & Investigation (Customs) seized 106 containers carrying 585 million meters cloth, which was being illegally imported by six Lahorebased companies, including M/s Dastagir Traders, M/s IC Master, M/s Mustafa Enterprises, M/s SBS Group of Companies, M/s Shahzad Traders and M/s World Fashion Textiles. Sources revealed that these
Wednesday, May 10, 2017
companies sent about $7.6 million abroad for smuggling of this huge quantity of grey cloth. Sources further said that FIRs have been registered and cases of money laundering will also be framed against these ‘importers’. The money has been si-
ed-off siphon n e e b as l oney h actua n the m to the y l l cloth i a g ille of the s r e l l nce /se n offe a turers c s a e f t u tu man ring consti aunde L which , y a e i n d in ti-Mo the An 10 under Act, 20
phoned-off illegally to the actual manufacturers/sellers of the cloth in India, which constitutes an offence under the Anti-Money Laundering Act, 2010. The Directorate General, Intelligence & Investigation (Customs) will also report the matter to the State Bank of Pakistan (SBP) and establish money trail. The Indian cloths were cleared from Dubai Customs and after repacking, the banned item is re-shipped from Dubai to Lahore via Karachi. The false documents were presented that the cloths have been manufactured in China and shipped to Pakistan via Dubai. The ‘importers’ used NLC and Prem Nagar Dry Ports of Lahore to get their consignments, carrying 58,457,586 metres cloth, cleared.
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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
projection of growth by un agency
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he United Nations Economic and Social Commission for Asia and the Pacific has projected the economic growth for Pakistan at 5.4 percent during the current and the next financial years. Higher consumer credits, improved security situation and developmental projects under the ChinaPakistan Economic Corridor would spur economic growth in two years. The inflow of Chinese investment in projects related to the economic corridor is continuing and the process has also contributed in generating the receipts of foreign exchange from various legal sources. In view of Chinese investment, many other countries are also taking interest to invest in Pakistan. Various energy projects are part of the economic corridor, which will help move the wheel of industry in Pakistan once those are completed. The UN agency hopes the largescale manufacturing sector would benefit from greater energy security and the government has already slashed gas prices for the industrial sector. It is also hoped that the agricultural sector would improve the production of cotton, sugarcane and maize this year. The country faced severe cotton shortage due to low yield last year and had to import it from India to cater to the needs of the local textile industry. The current government has successfully contained inflation at around five percent, but upward trends in the oil prices in the international market can push the inflation rate up to six percent. The agency, however, warns that energy shortage could affect potential growth in the country and the government should introduce energy sector reforms by reducing subsidies, tackling the outstanding arrears and better use of technical efficiency. A low tax base is a major area of concern and tax revenues in Pakistan are one of the lowest as compared to the countries in the region. The government will have to assert its writ on every sector of the economy and should have to launch capacity building programmes for the tax officials. In the current scenario, those who pay taxes and those who don’t are treated equally by the government authorities. Rather, the government is ever ready to tighten the noose of tax laws around the neck of genuine taxpayers and they are not offered any privilege by any government department.
Depreciation of pak rupee F
LAHORE
DR AftAB AfZAL
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inance Minister Ishaq Dar has at last bowed to the pressure from the export sector and the Pakistani rupee has appeared as the weakest against all the major currencies of the world. The rupee depreciated by 0.04 percent against the US dollar,0.89 percent against Chinese Yuan,4.62 percent against Indian rupee, 5.33 percent against Australian dollar, 0.91 against Canadian dollar, 5.3 percent against Taiwan dollar, 1.44 percent against euro and by 4.11 against Japanese yen in the third quarter of the cur-
rent fiscal year. Dar had been resisting the depreciation of rupee for the last two years. According to statistical bulletin of the State Bank,the Pakistani rupee fell against all the major and regional currencies, but claimed the depreciation of rupee left positive impact in the export sector in the first quarter of 2017. Independent economists doubt any positivity as depreciation of the currency is the sign of a weak economy. It is difficult to understand how the low currency value will increase the volume of exports in the current scenario. According to experts, a fall in the value of currency is the fall of the national economy
and will have worst effects than the falling exports. The increasing volume of imports and decreasing size of exports registered a trade deficit of nearly $23 billion in the first nine months of the current fiscal year. The depreciation of the currency and an increase in exports are though positive signs for the export sector, but will have adverse effects on the economy in the long run. There are different parameters to increase exports and melting the national currency is no way in the interest of the country. An economic disaster cannot be ruled out as ripple effects of the depreciation. The exporters had been demanding the government to depreciate the local
currency by at least five percent but the finance minister had so far resisted every pressure.It happened several occasions in the past that the government depreciated the Pakistani rupee to enhance exporters, but the move fired back at the end. The rupee only rose by 0.65 percent against the Iranian rial but exports have decreased to that country. The depreciation in currency value is special case of ‘how not to make progress’ as the successive government have been doing this to the national economy during the times of their rule. It is hoped that sanity will prevail and the government will avoid further depreciation in the near future.
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Emaar declares 15% cash dividend DUBAI: EMAAR Properties PJSC declared a cash dividend of 15 percent of the share capital, equivalent to AED1.074 billion ($292 million), for distribution to the company’s shareholders at the 19th Annual General Meeting held last April 18. The AGM also approved the report of the Board of Directors on the activities and financial position of Emaar, the Auditor’s report, and balance sheet for 2016. Ernst and Young was appointed as the auditor for 2017. The assembly also approved the Employees Incentive Scheme. Mohamed Alabbar, Chairman of Emaar Properties, said Emaar has created sustained value for shareholders through its competencies premium real estate, malls and hospitality. “The leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, inspires us to push our boundaries and expand our operations with the goal of creating added value for our stakeholders.”
textile exporters to get refund ‘soon’: fpcci KARACHI
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resident of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zubair Tufail has said that talks with the government are under way on payment of export refund so that the liquidity crunch faced by textile exporters can be addressed. Along with other senior members of the FPCCI during his visit to the 10th international textile machinery and garment technology exhibition on the second day of the event, IGATEX Pakistan 2017-Exhibition and Conference, on Thursday at the Expo Centre, Tufail expressed the hope that the issue of refunds would be resolved soon. “Payment of refunds would ease financial burden on exporters as cash flow
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position would improve. It will also boost morale of exporters,” he added. Appreciating the efforts of organisers of the exhibition, the FPCCI president noted that Pakistani exporters needed modern technologies and machinery to enhance their share in international market. “I am happy to see the products and their quality being displayed at the exhibition,” he said. He laid stress on introduction of latest machinery to increase textile production in Pakistan. “Bangladesh, despite being a cotton deficient country, has around $35 billion exports. Similarly, other countries, which are preferring to adopt modern ways of production, are increasing their market share,” he added. Saleem Khan Tanoli, CEO of FAKT Exhibitions, while sharing the feedback of the exhibition, told the media that hundreds of visitors, mostly engineers and technicians, were visiting to exchange views and get information about machinery being displayed.
Wednesday May 10, 2017
Chambers
icci signs Mou with pSX to increase access to equity funds for SMEs I
ISLAMABAD
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slamabad Chamber of Commerce and Industry (ICCI) has signed a Memorandum of Understanding with Pakistan Stock Exchange (PSX) to facilitate SMEs in generating funds from capital market for business growth and expansion. Khalid Iqbal Malik, President, ICCI and Nadeem Naqvi, Managing Director, PSX signed the MoU at a ceremony held at Chamber House. Asghar Abbas Naqvi Regional Head Islamabad and Muhammad Abduull, Head of Special Reports, PSX were also present at the occasion. By signing MoU, both organizations agreed to work jointly for strengthening SME sector and explore ways & means to initiate common business support programs/projects for SMEs. Speaking at the occasion, Nadeem Naqvi, Managing Director, Pakistan Stock Exchange said that to increase access to equity Uinance for SMEs, a growing number of developing countries were creating specialized equity markets, differentiated from the main exchange. He said PSX has
also developed such specialized segment for listing and trading of shares of SMEs and named it as “SME Board”. He said the SME Board was a good platform for SMEs to raise capital to fund their growth and expansion needs. He said it was an interest free and Sharia compliant facility for SMEs and stressed upon the SMEs to get listed on SME Board to get funds from capital market. He assured that PSX would help SMEs in documentation matters to facilitate their listing on stock exchange. He said PSX provided 20% annual return on in-
vestment in capital market and added that business entities should take full beneUit of these high returns for growth of business activities. In his welcome address, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce said that SME sector was facing many challenges and called upon the government to give 5-year tax deferral to SMEs in new budget for their revival and growth. He said that SMEs were the backbone of the economy as they constituted nearly 90 percent of all the enter-
prises in Pakistan, employed 80 percent of the non-agricultural labor force and contributed approximately 40 percent to the annual GDP of the country. However, he said due to strict lending criteria of banks for SMEs and tough provisions of collateral, small businesses were facing many problems in promoting business activities. He said due to difficult lending criteria, banking credit to SMEs has come down 7 percent which should be a cause of concern for the policymakers.
Dubai chamber and industry welcomes Azerbaijan delegation
inflation in costa Rica at highest level since 2015
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ith the recent publication of Costa Rica’s consumer price index (CPI), the Census and Statistics Institute (INEC) reported an inter-annual increase in inflation of 1.64 percent in April, which is its highest level in two years. Compared to March, inflation increased 0.15 points, with higher gas prices being largely responsible for the increase in inflation. The CPI has increased steadily since February, said the INEC. In April, of the 315 goods and services that make up the country’s consumer basket, 53 percent increased in price, 35 percent decreased and 12 percent maintained their prices. For the second consecutive month, increases in the prices of transportation, food, and non-alcoholic beverages were the largest contributors to the variation in the country’s inflation rate. –CB Report
DUBAI
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he Dubai Chamber of Commerce and Industry recently said it hosted a high-level delegation from Azerbaijan led by Deputy Minister of Economy Sahil Babayev. The delegation included 28 representatives from the public and private sectors of Azerbaijan who were greeted by chamber Vice Chairman Majid Al Shamsi and Undersecretary for Economic Affairs for the UAE Ministry of Economy Mohammed Al Shehhi, a chamber release said. During the meeting, the delegates met with Al Shamsi and business people from the UAE who represented the country’s food and retail sector.
Babayev noted that Azerbaijan currently has approximately $300 million worth of investments in the UAE and 255 UAE companies operate in Azerbaijan. “We are ready to cooperate with the UAE and create new joint ventures in the areas of industry, logistics, and transport, while we also hope to attract UAE businesses that want to set up in Azerbaijan,” Babayev said in the release. Babayev said that Azerbaijan is an ideal market for foreign investment and has political and economic stability. Additionally, the country entices investment with cheap labor costs and a skilled labor force. Meanwhile, The event which was established a year earlier, serves as a platform for Shari’ah departments of Islamic Uinancial institutions to conceptualise, evolve and drive the
development of Shari’ah compliance in the UAE. “ReUlecting on the progress of the Islamic Uinance industry over the last 40 years, we strongly believe that all players within the industry can extract massive synergies if we are aligned on communication, reporting and regulations. Meeting of minds from across the sector is critical for the continual development and globalisation of Islamic Finance. This event helps facilitate the sharing of best practices whilst simultaneously addressing the challenges faced by the Shari’ah business teams today and, as the main founder of this Forum, we remain fully committed to the UAE’s ambition of making Dubai the global capital of the Islamic economy,” said Moosa Khoory, Head of Shari’ah at DIB.
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Court approves judicial remand of accused involved in cloth smuggling Wednesday May 10, 2017
Islamabad nazia Zeb Ali assumes charge as Secretary (BtB) ISLAMABAD
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LAHORE: The Special Federal Court of Customs Taxation and Anti Smuggling has sent three accused to jail who were involved in smuggling of Indian made saris. According to details available to Customs Today three accused namely Sajjad Qureshi, Abdul Sattar and Hammad Ahmad were arrested by the customs authorities when they were making attempt to smuggle huge quantity of Indian made saris. On request of the investigation team customs court handed over them to the investigation team for further investigations.
naheed Azhar posted as commissioner-iR (HRM) in karachi N
ISLAMABAD
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azia Zeb Ali, a BS-19 officer of Inland Revenue Service, has assumed the charge of the post of Secretary (BTB). The officer, in pursuance of Board’s Notification No. 1281-IR-I/2017, dated 21.04.2017, relinquished the charge of the post of Additional Commissioner-IR, Regional Tax Office, Rawalpindi with effect from April 24 and took the charge as Secretary (BTB) at Federal Board of Revenue (HQ), Islamabad on the same date. Meanwhile, Sakhawat Gul, a BS-19 officer of Secretariat Group, has assumed charge of the post of Secretary. The officer, pursuing the Establishment Division’s Notification No.1-63-2012-E.2 dated 24.04.2017, took charge of the post of Secretary at Federal Board of Revenue (HQ), Islamabad with effect from April 24. –CB Report
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nasser Janjua takes charge as commissioner-iR ohammed Nasser Janjua, a BS-19 officer of Inland Revenue Service, has taken the charge as Commissioner-IR (OPS) (IP/TFD).v The officer, in pursuance of Board’s Notification No. 1221-IRI/2017, dated 17.04.2017, assumed the charge of the post of Commissioner-IR (OPS) (IP/TFD) at Corporate Regional Tax Office, Karachi with effect from April 19. Meanwhile, Adnan Inamullah Khan, a BS-20 officer of Inland Revenue Service, has assumed the charge of the post of Chief. The officer, on repatriation from Aviation Division, Islamabad, took the charge of the post of Chief at Federal Board of Revenue (HQ), Islamabad with effect from April 21. –CB Report
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aheed Azhar, a BS-20 officer of Inland Revenue Service, has been transferred and posted as Commissioner-IR (HRM), Large Taxpayers Unit, Karachi with immediate effect and until further orders. The officer, presently posted as Commissioner-IR (IP/TFD), Regional Tax Office-II, Karachi, has been directed to relinquish/assume charge, using online HRMS facility made available at all FBR major field offices or by using IJP login. Naheed was transferred from the post of Director General, (OPS) Directorate General of IOCO-IR, Karachi on April 18and posted as Commissioner (IP/TFD) at Re-
gional Tax Office II, Karachi. She has also been assigned the addi-
tional charge of the post of Director General (OPS), Directorate Gen-
eral of IOCO-IR, Karachi till the posting of a regular incumbent.
customs Appraisement collects Rs6,871m C
LAHORE
M HAYAt
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ollectorate of Customs Appraisement Lahore has collected Rs 6,871 million revenue, including all duty and taxes during April 2017. As per details, the collectorate, under supervision of Collector Customs Appraisement Jamil Nasir, collected Rs 2,699 million customs duty, Rs 3,618 million sales tax and Rs 545 million under the head of (WHT) withholding tax during during the period under review. The collectorate collected Rs 8.76 million federal excise duty (FED) during April against Rs 0.3 million during the same period of the last Uinical year. Over all, the collectorate collected Rs 6871 million during the month. The collectorate collected all the revenue from Mughalpur Dry Port, Thokar Niaz Baig, Prem Nagar and other stations. The collection has been made on account of duty and taxes on import and export from all the dry ports in and
around Lahore. Sources said that collector of customs Appraisement instructed additional collector of all station to collect as much rev-
enue s they can do to achieve the Uinancial year target of the Collectorate for the Uinancial year 201617. It was added that the collector
himself has been visiting all the stations and meeting the ofUicials to facilitate businessmen and collect the important revenue.
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FBR asked to reduce FED on soft drinks to 9pc KARACHI: Federal Board of Revenue (FBR) has been urged that federal excise duty (FED) on soft drinks should be reduced to 9 percent from present 11.5 percent. In the budget proposals 2017-18, the FBR was informed that in the year 2011-12 budget speech, Finance Minister had announced the strategy for gradually reduction in the number of items from the list of FED especially the food & beverage sector should be continued to attract new FDI investments in Pakistan. In the first step, FED on soft drinks was reduced from 12 percent to 6% in the Federal Budget 2011-2012 but no further reduction is made in budget 2012-2013 to continue this elimination process.
customs court fixes date to frame charge against suspect booked in gold smuggling case
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KARACHI
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ustoms Court Judge Syed Faiz Rasool Rashdi has postponed to frame charge against a suspect, Abdul Rauf Khan, till May 17, 2017. The suspect was booked while attempting to smuggle six slabs of gold weighting 60 tolas from Dubai to Karachi. A case was fixed for hearing, but due to absence of the accused counsel, the court adjourned the hearing for May 17, 2017. According to the prosecution, on January 1, 2017, the staff of the customs department intercepted Abdul Rauf Khan at Jinnah International Airport and recovered six slabs each weighting
10 tolas from his bags. During the search, the accused was asked to produce legal documents of the goods, however, he failed to produce any lawful documents, therefore, after the formalities the accused and gold were taken into custody and an FIR was lodged by Masood A Khan, Senior Preventive Officer Customs House Karachi against him. Masood requested the court to send the accused on physical remand for further investigations. It needs to be pertained here that above named accused is son of Ammanullah Khan Niazi, former Jail Superintendent Central Karachi. According to the prosecution, the case was registered under section 2 (s) and 16 of customs act 1969, punishable under clauses (8) (9) of section 156 ibid.
Karachi
SHc directs ciR Appeals to decide appeal of Sindh Dairy Lives Stock within month T
KARACHI
M B RAnA
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he Sindh High Court (SHC) has directed the commissioner Inland Revenue Appeals-IV Karachi to decide the appeal of Sindh Dairy Lives Stock and Breeding Farm within four weeks. The court ordered this on a constitutional petition filed by the petitioner, seeking directions for early disposal of its appeal pending before the commissioner Inland Revenue Appeals-IV over disputed amount of Rs 86,837,299. A twomember bench headed by Justice Aqeel Ahmed Abbasi, heard the petition. During the hearing, counsel for the petitioner argued that being aggrieved and dissatisfied with the inaction of CIR Appeals-IV, which is not conducting the hearing and deciding the appeal filed under section 127 of the Income Tax Ordinance 2011. Due to delay in deciding the appeal, the tax authorities have taken coercive measures for recovery of the amount and have ordered attachment of the petitioner’s bank accounts for that purpose. The counsel submitted that the
court may pass any interim relief. After the arguments, the court disposed of the petition with directions to the respondents not to enforce recovery of the impugned demand, which is subject matter of appeal before the commissioner Appeals-IV till its final disposal, whereas, in case of any adverse order, if passed by the commissioner appeals, the respondents shall not be forced for the recovery of impugned demand for further period of 7 days from the date of receipt of such appellate order. SHC also men-
Wednesday May 10, 2017
tioned in its order that “it is expected that the appeals of the petitioner, if not disposal of so far by the commissioner IR appeals shall be decided within a period of four weeks from the date of receipt of this order, which may be communicated to it in the counsel for the petitioner within one week”. Citing secretary Ministry of Finance, commissioner Inland Revenue Zone-01, Large Taxpayers Unit-III, the additional commissioner Audit Range-B, Zone-01, Large Taxpayers Unit-III and commissioner Inland Revenue.
fBR asked to recognise retailers filing sales tax return as active taxpayers KARACHI
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ederal Board of Revenue (FBR) has been asked to treat retailers filing sales tax return as active taxpayers. According to a budget proposal received by the FBR, Section 214D introduced through the Finance Act, 2015 laid down certain conditions for automatic selection for audit of a person in income tax affairs. a) The return is not filed within the date it is required to be filed as specified in Section 118, or, as the case may be, not filed within the time extended by the Board under Section 214A or further extended for a period not exceeding thirty days by the Commissioner under Section 119; or b) The tax payable under Sub-Section (1) of Section 137 has not been paid. Simultaneously immunity from selection for audit has been granted to persons registered as retailer under Rule (4) of the Special Procedure Rule, 2007, subject to the condition that their name remains on the Sales Tax Active Taxpayers’list throughout the tax year, which means that the case of any aforesaid person who files the return of income late or fails to pay tax under Section 137(1) of the Ordinance, along with return of income, would not be automatically selected for audit under this Section.
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Appraisement East probing into misuse of pay orders
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KARACHI
M A ABDuLLAH
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he Customs Collectorate of Appraisement East is investigating misuse of pay-orders received in the securities section of the Collectorate. The complainant, Muhammad Saleem Khan, Appraising OfUicer at Research and Development Section, Appraisement East, Customs House, Karachi has Uiled First Information Report (FIR) in this regard. According to the FIR, that particular pay-order was subsequently deposited into un-authorized WeBOC personal deposit accounts of
fake importers with the active connivance of concerned WeBOC Collection Counter staff of National Bank of Pakistan, Karachi. Saleem Khan said that ongoing investigation revealed that pay order of amount of Rs1,437,387/ was misused. “The information was received that some unscrupulous elements are involved in illegal removal of pay-orders from securities section of the Collectorate and depositing those into PD Accounts of the un-authorized delinquent importers illegally.” He mentioned that FIR has been launched against Khan Muhammad, proprietor of Noman Trading Company, located at Shenwari
Padas Khel, Kyber Agency, Landikotal, KPK and Muhammad Rafiq, I/c WeBOC Collection Counter, OG-II, situated at NBP, Customs House Branch, Karachi. Saleem Khan further said that personal deposit or pact-deposit account is a facility by which government allows the users of WeBOC system (traders as well as customs agents) to deposit their funds with the government in advance. “The funds deposited are utilised by the owner of PD Accounts for payment of duty and taxes towards their customs liabilities arising in WeBOC system during the course of import/export by the owner. These PD Accounts are maintained on the
basis of NTN of the WeBOC user.” He added that a pay-order number P.O No 9733910 dated 14/12/2016 issued by Faysal Bank, New Charlli Branch, Karachi on account of M/s Elahi Traders (NTN 1507198), authorized importer, was illegally and allegedly deposited into PD Account of Noman Trading Company (NTN 4440216-3), whose owner is accused Khan Muhammad. He also mentioned that Muhammad RaUiq was actively involved in this illegal depositing of pay-order. “At the time of deposit of funds into PD Accounts by the NBP, the WeBOC system asks the NTN number of PD Account Holder, in which funds are to be deposited.
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Turkey eyes on balanced FTA with India Wednesday May 10, 2017
World
ANKARA: Turkey’s President, Recep Tayyip Erdogan, has said that he is keen to launch talks for a free trade agreement (FTA) with India. Erdogan met with India’s Prime Minister, Narendra Modi, earlier this week to discuss the two countries’ economic relationship and in particular Turkey’s two-way trade deficit. Both countries have been active in discussions internationally to lower their tariffs reciprocally with other countries; Turkey recently held free trade talks with the European Free Trade Association (EFTA) states (Switzerland, Liechtenstein, Iceland, and Norway) and Pakistan, while India has been engaged in talks with EFTA, Peru, and the UK.
DR congo arrests 14 chinese for wood smuggling
philippines exports goods worth €1.7b to Eu MANILA
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LUBMBASHI
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ourteen Chinese people suspected of illegally exporting red wood from the Democratic Republic of Congo (DR Congo) were arrested, local ofUicials said, as Beijing stressed Friday its commitment to tackling the illegal trade. “We have arrested Chinese people… who were cutting wood in our region,” Celestin Pande, acting governor of the Haut-Katanga region, told AFP. China responded Friday by saying it supported wildlife conservation and backed efforts to stamp out illegal activities. “We have noted the relevant reports. China respects the efforts of DR Congo to justly handle the case according to the law,” Chinese Foreign Ministry spokesman Geng Shuang said. “We also hope the lawful rights of Chinese citizens can be safeguarded. We want to stress
Brazilian footwear exports decline in Q1 etween January and March 2017, a total of 31.33 million pairs were exported generating US$259 million in revenue; representing a -1.6% decline in volume and a -14.2% drop in value, year-on year. According to Abicalçados, the Brazilian Shoe Manufacturers Association, a total of 31.84 million pairs worth US$226.72 million were shipped abroad in the corresponding period the prior year. The decline in the first quarter of 2017 has been attributed to the devaluation of the dollar; prices of the Brazilian products in the international markets having increased 16% in the period. “Our footwear, given the undervaluation of the North American dollar, became more expensive since our costs are in Brazilian reais, which is currently stronger”, explains Heitor Klein, Executive President, Abicalçados. –CB Report
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that China is a signatory of CITES,” the Convention on International Trade in Endangered Species which also covers the illegal timber trade. “For those who are engaged in illegal trade of wildlife products we have zero tolerance. Chinese law enforcement has made efforts to combat trafUicking,” added Gueng. “We are ready to work with the rest of the world to enhance law enforcement
ability to support sustainable trade of wildlife animals and plants.” Pande said 17,000 tons of red wood had been illegally exported to China through Zambia over four months. “We have arrested 14 Chinese nationals with (tourist) visas, who were involved in cutting and illegally exporting red wood,” an immigration ofUicial in Haut-Katanga added, speaking on condition of anonymity.
Russia suspends Lpg exports to ukraine again
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ussian exporters have suspended liquefied petroleum gas (LPG) exports to Ukraine for the second time in a month because Russia’s regulator has not given clearance for the shipments, traders said. Russia restricted LPG exports to Ukraine in early April for a few days citing concerns it could be used for military purposes. Russian railway statistics, seen by Reuters, also showed there had
been no LNG exports to Ukraine from Russia since May. Relations between Kiev and Moscow plummeted after Russia annexed the Crimean peninsula in March 2014 and separatist Uighting erupted in Ukraine’s eastern Donbass region. Traders said the Russian regulator, the Federal Service for Technical and Export Control (FSTEC), had not given clearance for the LPG shipments. The FSTEC was not immediately available to comment. –CB Report
he Philippines has exported 1.7 billion Euros worth of goods to the European Union (EU) last year under a trade perk that allowed zero tariff for various local products, a nearly 10-percent increase from 2015 that raised the stakes for the trade beneUit, which the country might lose due to the government’s anticrime efforts. The Generalized System of Preferences Plus (GSP +) status, a conditional trade incentive that allowed duty-free access to the European bloc, has eased the entry for more than a quarter or more than 6,000 Philippine products in 2016, a top EU ofUicial said. Walter van Hattum, head of the economic and trade section at the EU’s delegation in Manila, told reporters that the value of local
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products entering the EU market went up nearly 10 percent from 1.55 billion Euros in 2015. This was based on Eurostat data, the statistical ofUice of the EU, which said that products eligible for the GSP+ accounted for 27 percent of overall Philippine merchandise exports to the EU. He said that the utilization rate of the GSP+ has also improved, reaching 71 percent last year from around 66 to 67 percent in 2015. The increased use of the GSP+ perks came at a time when the Philippine exports to the world declined by 4.4 percent to $56.23 billion last year from $58.83 billion in 2015, according to preliminary Uigures from the Philippine Statistics Authority. The same trend was true for exports to the EU, which fell 5.65 percent to $6.78 billion in 2016 from $7.19 billion the year earlier. Hattum said that local exporters have been taking advantage of the trade perk in spite of the controversies that currently hound the country’s eligibility for the GSP+.
Sk Q1 gDp growth to bounce sharply
outh Korea’s economic growth likely accelerated at a sharper pace in the first three months of the year than the previous quarter as exports and capital investment tracked a recovery in the global economy. The local economy is expected to have expanded by a median 0.7 percent over JanuaryMarch in seasonally adjusted terms from the previous quarter, according to a poll. On a yearly basis, respondents predicted a median 2.6 percent rise. While North Korean provocations, a diplomatic spat with China and ongoing corporate restructuring present downside risks to the
economy, a new president, to be elected May 9, is likely to boost government spending, which should be supportive of growth this year. Frontrunner democratic candidate Moon Jae-in has already promised an extra budget of over 10 trillion won ($8.83 billion) if he is elected to support jobs and domestic consumption. In the fourth quarter of last year, the economy grew 0.5 percent in seasonally adjusted terms, while on-year, it grew 2.4 percent. “Exports and investment likely rose faster than expected, driving growth,” said June Park, an economist at Daishin Economic Research Institute. –CB Report
Saudi private sector growth gathers pace in April
B RIYADH
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usiness conditions in Saudi Arabia’s non-oil private sector continued to improve at the start of the second quarter, with rates of expansion in new work and business activity gathering pace, according to a new
survey. Data from the Emirates NBD Saudi Arabia Purchasing Managers’ Index (PMI) showed that firms were encouraged to engage in purchasing activity, which in turn led to the strongest accumulation in stocks of purchases in over four-and-a-half years. Despite added pressure on operating capacity, the rate of job creation remained only marginal
overall. Meanwhile, input cost inflation climbed to an eight-month high, but selling prices rose only fractionally amid competitive pressures. The headline seasonally adjusted PMI rose from 56.4 in March to 56.5 in April. The latest reading was broadly similar to the average recorded in the opening quarter of 2017 and consistent with a robust improve-
ment in business conditions across the sector. However, the PMI posted below its long-run series average of 58.3. Tim Fox, head of research and chief economist at Emirates NBD, said: “This was another overall strong reading of Saudi Arabia’s non-oil private sector activity, with output and new orders growth both very firm in April.
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UK manufacturing sees fastest growth for 3 years
World Customs
LONDON: Britain’s factories enjoyed their fastest growth for three years last month on the back of strong demand at home and abroad, according to a survey that will temper worries about a Brexit-driven economic slowdown this year. The manufacturing sector, which makes up about a tenth of the UK economy, enjoyed the strongest pick-up in new work since the start of 2014 and smashed expectations in April. Firms also took on new workers at a faster pace and ramped up production, the closely watched Markit/CIPS UK Manufacturing PMI (pdf) showed. Its main barometer of business activity jumped to 57.3 in April from 54.2 in March.
cBp officers seizes $3 million in drugs, capture 13 fugitives S Customs and Border Protection officers working at the ports of entry in the San Diego and Imperial Valley Counties over the weekend intercepted more than 700 pounds of narcotics, valued at over $3 Million, and captured 13 fugitives with outstanding felony warrants. Through Sunday, Apr. 30, CBP officers intercepted 208 pounds of methamphetamine, 149 pounds of cocaine, 23 pounds of heroin and 347 pounds of marijuana. CBP officers discovered the narcotics hidden inside vehicles in various places, such as the roof, floor, spare tire and trunk. During the same time period a total of 13 fugitives were arrested for various charges that included larceny, assault, burglary and stolen vehicle. “CBP officers combat drug trafficking and encounter fugitives on a daily basis, this weekend is a snapshot,” said Pete Flores, director of field operations for CBP in San Diego. “Drugs sold in the U.S. fuels more violence and this weekend we kept $3 Million dollars out of the hands of the drug trafficking organizations.” –CB Report
goa customs seizes gold bars worth Rs3.47m at airport
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Belgium’s ucB sees Q1 sales up 15% elgium’s largest pharma company UCB (Euronext Brussels: UCB) this morning reported that revenue for the first three months of 2017 increased to 1.12 billion euros ($1.22 billion, a rise of 15% at actual and 14% at constant exchange rates (CER). This was supported by the onetime other revenue of 56 million euros recognized in February 2017 for out-licensing of the OTC-allergy drug Xyzal (levocetirizine). The company did not provide earnings figures. However, UCB’s shares were down 3.16% at 69.32 euros in mid-morning trading today. Core driver of the continued sales growth are UCB’s main products. Cimzia (certolizumab pegol), for the treatment of inflammatory TNF mediated diseases, generated sales of 317 million euros, up 13% on an actual basis. –CB Report
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GOA
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ontinuing to crack down on attempts to smuggle gold through Goa International Airport, the Commissionerate of customs on Friday foiled an attempt by unknown individuals to smuggle 11 gold bars worth Rs 3.5 million. The gold was found during routine inspection of Air India flight AI-994 under a seat and marks the second gold seizure in less than a week. Customs sleuths had confiscated
gold worth Rs 0.87 million on the same Dubai-Goa flight on April 23. While the investigation is on, customs officials have not been able to identify the culprit. The passenger under whose seat the gold bars were found claimed ignorance about the smuggled gold. “The man had a ticket to Bengaluru and he was not supposed to disembark at Goa. Though it was under his seat, we have called it abandoned because we did not find it on his person. We informed customs officials at Bengaluru and his bags were checked there but nothing was found,” commissioner of central excise and customs K Anpazhakan said. In April itself, gold
worth Rs 6.63 million, weighing 2.4kilogram was seized at Goa International Airport. “While performing duties during the arrival of Air India flight AI 994, officers of the Air Intelligence unit of Goa customs rummaged the aircraft and found a small packet wrapped with black adhesive tape containing 11 gold bars weighing 1,280g,” a customs official said. Under Section 110 and 111 of the Customs Act which allows customs officials to seize the gold, the smuggled yellow metal has been attached by the department. “Further investigation is in progress. This is the seventh seizure by Goa customs in April 2017,” an official said.
Wednesday May 10, 2017
$375 Million Surplus in iran foreign trade ran’s non-oil foreign trade during the first month of the current Iranian year (started stood at $5.07 billion. According to the latest report by the Islamic Republic of Iran Customs Administration, Iran exported 8.06 million tons of non-oil commodities worth $2.72 billion and imported 2.09 million tons worth $2.34 billion during the period. Exports mainly included gas condensates ($493 million), methanol ($132 million), liquefied propane ($103 million), film grade polyethylene ($98 million), non-alloy iron and steel ($97 million), petroleum gases and liquefied hydrocarbons ($96 million), light crude oil and its derivatives excluding gasoline ($91 million), liquefied butane ($63 million), polyethylene-HDPE injection grade ($63 million) and bitumen ($54 million). Imports included field corn ($144 million), rice ($74 million), motor vehicles of 1500cc to 2000cc engine capacity ($64 million) and soybean meal ($57 million). Intermediate goods accounted for 67.14% of the total import value. Consumer goods and capital goods made up for 17.46% and 15.4% of imports, respectively. China was the main customer of Iranian products, with $615 million worth of imports. Other export destinations included the UAE with $497 million, Iraq with $388 million, India with $248 million and South Korea with $153 million worth of imports. –CB Report
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uk car sales drop after tax changes and price rises
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LONDON
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ar sales tumbled in April at the sharpest rate since 2010 as government cuts to subsidies for green cars and a rise in prices hit the market for new vehicles. New car registrations fell month on month by almost 20% to 152,076 units as demand for electric and hybrid vehicles fell for the Uirst time in almost four years. Analysts said the 19.8% fall was a huge blow to the industry
and was mainly due to a cut in green subsidies that will add to the cost of owning a low-emission car. Howard Archer, the chief economist at IHS Global Insight, warned that the incentive to bring forward purchases to March could mean that month proved to be the industry’s “last hurrah”. Samuel Tombs, the chief UK economist at Pantheon Macroeconomics, said an average 2.9% annual rise in prices could set the industry on a downward trend for the rest of the year. Car sales have underpinned the UK’s economic recovery since 2014
when fuel prices, which surged after the Uinancial crash, dropped by more than half. Double-digit growth in subsequent years, further helped by cheap Uinance deals, has proved to be a signiUicant element of GDP growth. Tombs added that consumers were Uinding it tougher to secure unsecured credit from lenders, “and the fall in consumer conUidence and squeeze on real wages is making households reluctant to commit to big ticket purchases”. Diesel cars were the biggest fallers, prompted by the continued threat of higher duties and potential bans from driving in
city centres. Tombs said company Uleet car buyers, who have propped up the market since the Brexit vote last year, continued to provide all the momentum behind the market while private car buying slumped. “Private car registrations plunged in April because vehicle excise duty (VED) rose sharply for cars purchased after April,” he said. Most buyers would have been about £400 better off over the three years by buying a low-emission car before the tax hike, although the exact savings vary according to the vehicle’s emissions and price.
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ANF arrests three drug pushers in different actions Wednesday May 10, 2017
Lahore
LAHORE: The Anti-Narcotics Force Lahore has booked three drug peddlers from different areas. The Anti-Narcotics Force staff intercepted a car and a motorcycle near Choras Tank, Green Town Lahore, and seized 2.4 kg of hashish from the vehicle. Two persons, identified as Naveed Khan, a resident of Kohat, and Muhammad Sajid Khan, identified as a resident of Lahore, were taken into custody. Meanwhile, the Lahore ANF seized two kilogram of hashish from a man identified as Mumtaz, a resident of Mardan, from near Jamia Masjid, Sargodha Road, Faisalabad. Meanwhile, The AntiNarcotics Force Lahore has intercepted several vehicles at different points and recovered more than six kilogram of narcotics.
customs court adjourns hearing of bail plea filed by alleged smuggler LAHORE
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he Special Federal Court of Customs Taxation and AntiSmuggling has adjourned the hearing of a bail plea of a suspect who was arrested in a mobile smuggling case. Earlier the Customs Taxation and Anti Smuggling Court approved a 14-day judicial remand of the accused who was arrested by the customs authorities from Faisalabad on last Tuesday. Sources told Customs Today that Tayyab Manzoor was booked by the Customs Preventive from Faisalabad International airport while he reached from Bahrain. Tayyab was travelling via Ulight of Gulf Airways. During search of the luggage of the goods customs team found mo-
pRA to bring 40 more restaurants in Lahore in tax net he Punjab Revenue Authority (PRA) has decided to broaden its network in Lahore and has shortlisted 40 more restaurants to bring them into network in coming days. Sources told Customs Today that PRA has checked almost 40 restaurants in posh areas of the city which are providing expensive food to citizens and they are earning millions of rupees but are not registered for sales tax. These restaurants will increase the revenue of the authority in coming days as it has already increased in the past two years. It is pertinent to mention here that PRA has increased its revenues up to 35 percent in first eight months of the fiscal year 2016-17 as compared to the last year. Restaurant invoice monitoring system will be installed in all restaurants that are providing services in posh areas of Lahore Faisalabad and other big cities of the province. –CB Report
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bile phones. Customs team arrested him and found 60 cell phones hidden in his bag. Customs team has registered a case against the accused Tayyab and launched investigation as well after conUiscating the cell phones. Customs Investigation and Prosecution team presented him before the judge of the customs court and asked him for his physical remand that the court has approved for two days for investigation to dig out the more accused behind the smuggling act. Worth of the cell phones is more than Rs5million. Meanwhile, The Special Federal Court of Customs Taxation and Anti-Smuggling has adjourned the hearing of mobile phones smuggling case. Earlier, the court had approved extension in judicial remand of an accused who was arrested by the customs authorities from Allama Iqbal international airport while making an attempt to smuggle cell phones from China to Lahore.
customs i&i confiscates huge quantity of nDp tyres, cloth
LAHORE
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irectorate of Customs Intelligence and Investigations (I&I) Lahore has seized non-duty paid contraband goods and articles, including auto-spare
customs seizes non-duty paid vehicles worth Rs 45 million
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he Customs Intelligence and Investigations has seized noncustoms paid vehicles of Rs 45 million involving duty and taxes of Rs 67 million from January to April 2017. As per details, Directorate of Customs Intelligence and Investigations undertook various operations against non-duty paid vehicles and seized vehicles worth millions of rupees. The directorate conducted the operations on the directions of Director General Shaukat Ali while the operations were led by Deputy Di-
rector Ali Zeb Khan. The data exhibited that the directorate seized seven vehicles worth Rs 15 million involving duty and taxes worth Rs 21 million during January while the directorate seized two vehicles worth Rs 5.6 million involving duty and taxes worth Rs 6 million during February. Similarly the directorate impounded seven vehicles worth Rs 24 million involving duty and taxes worth Rs 40 million during March to date 2017. –CB Report
parts worth millions of rupees. Sources told Customs Today that two buses were coming from Mardan and Peshawar loaded with the auto parts and were impounded as the owners of the buses failed to produce any legal documents against the seized items. Meanwhile, the Customs Intelligence team also confiscated a truck loaded with tyres, cloth and other
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illegally imported items. The sources said that the truck was loaded with Rs 10 million illegally imported items. The sources said that the customs authorities also seized the illegal items from bus bearing registration number LES/499. The bus was detained near Sherakot. It was reported that the illegal items were hidden in the secret parts of the bus. The bus which was coming from Mardan was identified as E1/245 and was also intercepted near Sherakot. The sources said that the operations against the buses and truck were conducted under the supervision of Deputy Director Ali Zeb Khan while the team comprising Superintendent Waqar Cheema, Sohail Murtza, Nadeem Ahsan participated in the operation. The sources said that the customs authorities after impounding the illegal items have started further investigations.
cement exports decrease 50pc
he cement industry recorded huge 50.75 per cent decline in export during the previous month of current calendar year. According to the data released by All Pakistan Cement Manufacturers Association (APCMA), the industry despatched a record 33.88 million tons of cement during the Uirst ten months of this Uiscal. The domestic consumption was 29.871 million tons while the exports were only 4.01 million tons. During the same period of last year, cement despatched was 31.901 million tons out of which the domestic consumption was 26.973
million tons and exports were 4.928 million tons. During the July-April 2017 period, the domestic consumption of cement surged by 10.74 percent while the exports declined by 18.63 percent. Because of this massive decline in exports the growth in cement despatches increased by only 6.21 percent. There is more than 50 percent decline in exports in the month of April. The exports from mills based in north were 181911 tons and from mills based in south was 0.074 million tons only. Total export of cement to Afghanistan in the month of April 2017. –CB Report
pcA summons M/s faiz company in duty, tax evasion case
D LAHORE
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irectorate of Customs Post Clarence Audit (PCA) has summoned M/s Faiz Company, Rawalpind in duty and tax evasion of Rs 189,142 on import of tarpaulin. According to the details, the PCA Lahore observed
that the import clearances data against HS Code 6306.1210 effected from various Customs Collectorate during the calendar years. 2012 and 2013 revealed that inadmissible concession of sales tax and value added sales tax under the SRO (1125)/2011 dated 31.12.2011 was availed on the import of tarpaulin i.e. sun shedding which is specifically ex-
cluded from that ambit of the said SRO. It has been observed that importer had imported various consignments consisting of tarpaulin and got them cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/201 1, dated 31.12.2011. Hence, it was said that the importers have short paid an
amount of Rs 189,142 regarding sales tax, additional sales tax and income tax due to wrongful concession under the SRO I 125(D/2011 dated 31.12.2011. The importer was told in case they do not agree with the audit observation; they may provide the written clarification along with supporting documents as well as import documents.
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Four ships take berth at Port Qasim KARACHI: Four ships, MSC Maria Elena, Al-Khurj, Rich Sino and MY Mirande carrying containers, Palm oil and Chemicals were arranged berthing at Qasim International Container Terminal, Liquid Cargo Terminal and Engro Vopak Terminal respectively on Monday.Meanwhile four more ships APL Charleston, Northern Magnum, Globe Tanya and North Gas with Containers and LPG also arrived at outer anchorage of Port Qasim (PQ) during last 24 hours. Berth occupancy was observed at the Port at 60% on Monday where a total of nine ships namely, MSC Maria Elena, Al-Khurj, Calimere, Jia Hui Shan, Trade Unity, MY Miranda, Ummbab, Rich Sino and Quetta are currently occupying berth to load/offload Containers, Coal, Canola Seeds, LNG, Chemicals, Palm oil and Furnace oil respectively during last 24 hours.
port of oakland embraces ocean carrier alliance changes n executive with the Port of Oakland, Calif., says he is eager for changes in the way container shipping lines operate. Maritime Director John Driscoll said newly formed ocean carrier alliances will help the port, according to a news release from the facility. “We’ll see larger vessels coming to the port, which is a good thing,” he told employees in a podcast on the port’s website, portofoakland.com. “We’ll get more container moves-per-vessel which increases the efficiency of operations.” Driscoll also said the port will receive a new weekly vessel service as a result of carrier realignment. Taiwan-based Wan Hai Lines plans to launch a new route connecting Oakland and Asia, which will increase to 29 the number of regularly scheduled
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vessel services calling Oakland. “It’s a good sign when new players come to Oakland,” Driscoll said in the release. The changes result from an April 1 realignment in which 11 of the world’s largest shipping lines formed three new alliances. Alliances let carriers pool ships on ocean routes to cut costs while expanding market reach. The carriers plan to deploy larger vessels in their alliances, carrying more containers to the U.S. West Coast. That should enable them to reduce the number of voyages while maintaining cargo volume levels, Driscoll said. New alliance configurations should have little effect on Oakland operations, Driscoll said, noting that some vessels will change which of Oakland’s three international marine terminals they call, but the terminals are prepared.
Ports & Shipping
$85M construction begins at columbus port of Entry
govt awards 49 port projects worth Rs 8,341 crore in fY17 he government awarded 49 port projects with an investment of Rs 8,341 crore in the previous fiscal, which will result in capacity addition of 104 MT. This was against a target of 102 million tonnes per annum (MTPA) capacity augmentation. “In respect of development of port infrastructure, 49 projects have been awarded with a capacity of 103.52 MTPA against a target of 102 MTPA with an investment of Rs 8,341.12 crore during the last fiscal,”Shipping, Road Transport and Highways Minister Nitin Gadkari told PTI. He said concerted efforts to improve port infrastructure have resulted in the highest ever capacity addition of 100.59 MT in major ports during the last fiscal. “Major ports capacity during 2015-16 was 965.36 MTPA. This crossed 1,065 MTPA during 2016-17,”the minister said. India has 12 major ports Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia) which handle approximately 61 per cent of the country’s total cargo traffic.
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COLUMBUS
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wo U.S. senators and a congressman celebrated the start of new construction on the state’s oldest port of entry during a groundbreaking ceremony Monday in Columbus. Sens. Tom Udall and Martin Heinrich, both Democrats, were joined by Rep. Steve Pearce, a Republican, to kickoff the construction. Government ofUicials said the $85.6 million project will improve security, encourage trade and create jobs in the community. Meanwhile, Udall, a member of the Senate Appropriations Committee, was instrumental in securing the federal funding and told NewsChannel 9 the number of daily crosses have increased dramatically within the last few years and the port itself has trouble keeping up. According to Udall, from 2010 to 2016, pedestrian crossings have increased by 40,000 people. During that same time frame, commercial
Wednesday May 10, 2017
trafUic has increased 60 percent, according to Udall. He said, “The Columbus Port of Entry is an important gateway between New Mexico and Mexico, our state’s largest trading partner. Replacing the aging infrastructure and expanding the port will dramatically increase efUiciency and expand trade, tourism, and commerce with Mexico and improve safety for our Customs and Border Protection agents.”
In addition to having an economic impact, Pearce said the expansion will help improve border security. “Not only will the new port aid in the overall strategy to secure our southern border and keep communities in New Mexico safe but it will increase the economic opportunity to improving Customs and Border Patrol’s ability to effectively and efUiciently complete its inspections at the Columbus crossing.
navy ports to put wind in EEc’s sails T
WASHINGTON
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he Royal Thai Navy is set to invest combined 2.04 billion baht on 13 development projects, including ferry ports and related facilities, to accommodate the much-touted Eastern Economic Corridor (EEC). Nathporn Chatusripitak, an adviser to Prime Minister’s OfUice Minister Suvit Maesincee, said the projects will include two quays for ferries and cruise liners, a ferry terminal, multimodal transport and a business area covering 20,000 square metres at Chuk Samet, Sattahip in Chon Buri province. The development projects will link to land transport routes and U-tapao airport as part of the government’s ambitious plan to upgrade eastern provinces to become a logistics hub for the region. The routes are also
designated to support the tourism industry in the region and enhance goods transportation to other ports. Sattahip commercial port is one of Thailand’s deep-water ports and is home to the largest naval base for the Royal Thai Navy and its only aircraft carrier. The Royal Thai Navy’s commercial port has six quays, covering 20,000 square metres. Three quays are dedicated to the Royal Thai Navy’s warships and the remaining quays are used for the transport of goods. Meanwhile, Spanish Algeciras Bay Port has added three new container shipping services, with one connecting TTI Algeciras’s semiautomatic terminal to ports in Cuba and Eastern Canada. Cuban shipping company MELFI Marine introduced a new Cuba-Spain-Canada service there. Using a Uleet of three vessels, the MEDCAMEX service will connect the Spanish port with the Cuban
port of Mariel in Cuba for the Uirst time, with a transit time of 15 Days. It will also connect Algeciras Port to Halifax in Canada with a transit time of 10 days. An additional service connecting the port to Northern Europe and the Eastern Mediterranean is jointly operated by three shipping companies. These are French shipping Company CMA-CGM, German shipping company Hamburg Süd, and Maersk Group subsidiary Seago Line Shipping. It is called NC Levant and its rotation inlcudes Northern European ports such as Felixstowe, Antwerp and Hamburg as well as Eastern Mediterranean ports such as Alexandria, Beirut, Istanbul, Mersin and Port Said. Finally, the Israeli shipping company inaugurated a service called ZCA Container Service Atlantic that directly connects the port with New York with a transit time of 10 days, as well as with Mersin in Turkey with a transit time
of 14 days. Rotation of the service includes calls at the ports of Ashdod and Haifa in Israel, Izmir and Mersin in Turkey and Piraeus in Greece. ZIM has previously operated its ZCA eastbound New York-Ashdod service with a transit time of 22 days, Port 2 Port reported. It later announced that it would be restructuring and upgrading its services in the East Mediterranean beginning November 28, 2016. New services and customers continue to arrive at the terminal thanks to its commercial efforts and in spite of the climate of instability and questions over Spanish stowage systems, TTI Algeciras added. Shipping executives from across the region are making preparations to attend the Caribbean Shipping Association’s 16th Caribbean Shipping Executives Conference hosted by the Curaçao Ports Authority in the beautiful city of Willemstad, Curaçao.
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Faisalabad ASO seizes non duty paid ceramic tiles FAISALABAD: The Anti Smuggling Organization (ASO) has seized ceramic tiles worth Rs104516, involving duty and taxes to the tune of Rs80,034. According to sources of Customs Today Collector Muhammad Sadiq on tip off directed the ASO team to conduct operation on godown of Sethi Marbles. During the search operation, customs officials 283 square meters of ceramic tiles worth Rs1,04,516 from the godown, as the officials of the warehouse could not produce the import documents regarding the tiles.
Wednesday, May 10, 2017
CUSTOMS BULLETIN
Dg Valuation issues customs values of carburetor cleaner KARACHI cuStoMS BuLLEtin REpoRt www.customsbulletin.com
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he Directorate General of Customs Valuation has revised the customs values of carburetor cleaner through Valuation Ruling No 1142/2017 under Section 25A of the Customs Act, 1969. According to details, the customs values of carburetor cleaner were earlier determined vide Valuation No.193/2017 dated, 28-02-2017. Representations were received from commercial importers for determination of customs values of carburetor cleaner afresh. Meeting with all the stakeholders including importers and representatives from clearance collectorates and Pakistan Automobile Spare Parts Importers and Dealers Association, was held on 11-042017 to discuss the current international prices of the subject goods. The viewpoint of all the participants was heard in details and considered to arrive at customs values of carburetor cleaner. Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the par-
ticular valuation issue at hand. The transaction value method as provided in Sub-Section (1) of Section 25, found inapplicable in light of the wide variety of invoices submitted at import stage the veracity of which could not he ascertained fully, hence
requisite information required under law was not available to arrive at the correct transaction value. Identical / similar goods value method provided vide Sub-Sections (5) & (6) of Section 25 ibid were examined for applicability to determine customs
value of subject goods, this data provided some references, however, it was found that the same cannot be solely relied upon due to the absence of absolute demonstrable evidence of qualities, and quantities of commercial level etc., and also it was ob-
served that importers usually provided misleading description while declaring goods, as other types and varieties of similar goods to avoid the application bf valuation ruling. Information available • was, hence, found inappropriate.
SHc extends order on restoration of StR of M/s Ship Masters KARACHI
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he Sindh High Court (SHC) extended an interim order on the restoration of petitioner’s sales tax registration for further two weeks and directed the tax department to decide the matter according to the law on a constitutional petition filed by M/s Ship Masters seeking
restoration of its sales tax registration suspended by tax authorities. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition. During the hearing, court disposed of this petition with the direction that interim order further continued for two weeks however petitioner will not be entitled to claim any adjustment or refund. The court also directed the Commissioner Inland Revenue Regional Tax Office-II to issue show cause notice to petitioner regarding the sales
tax’s registration and petitioner may file a proper reply and after given fair opportunity, said respondent may pass order according to the law. On the last date of hearing, no one was in attendance on behalf of respondents despite service of court notice in the office of the CIR RTO-II Karachi whereas no intimation was received. The counsel for the petitioner had submitted that the petitioner is facing hardships and serious financial crises in view of such illegal suspension of sales tax registration whereas no notice
has ever been served on the petitioner in terms of section 21 of the Sales Tax Act-1990. The petitioner further contended that no penal proceedings whatsoever are pending against the petitioner in respect of his taxable activities which have come to a halt on account of illegal suspension by the respondents with effect from 13th of June 2013. It has been prayed that interim relief may be granted. During the hearing, assistant attorney general requested for further time to seek instructions
Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi
and file comments on behalf of the respondents. After the hearing, court had suspended the operation of suspension of Sales Tax registration of the petitioner and directed the respondents to file their para-wise comments on the next date of hearing. Citing Chairman Federal Board of Revenue (FBR), Commissioner Inland Revenue Regional Tax Office-II as respondents, the counsel for the petitioner pleaded with the court to kindly restore its Sales Tax registration immediately.