Friday, 11 May 2018

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Karachi, Fri May 11, 2018

QUETTA

TARIQ DERYA

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he Customs Collectorate received Rs.6093 million of revenue under all heads of duty taxes from July to April FY2017-18 against the same period of corresponding Fiscal Year 2016-17.

Collector Ashraf Ali

told that during Sirst ten months (July to April) FY17-18 the MCC Quetta fetched Rs.18507 million under head of all taxes whereas the Collectorate received Rs.12414 million under same heads during same Fiscal Year.

The collector told that Collectorate earned Rs.7310 million under head of Customs Duty (CD) during Sirst 10 months against Rs.4435 million of collection. The Collectorate received extra amount of Rs2875 million under the head of CD during Sirst ten months of Fiscal Year 2017-18 against correspondence period from July to April FY16-17.

The collector told that during Sirst 10 months of FY17-18 MCC earned Rs.7114 million under head of sales Tax (ST) against revenue collection of Rs.5389 million collected under the same

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head during FY16-17.

Ashraf told that MCC earned Rs.746 million under head of additional sales tax (AST) during Sirst 10 month of FY17-18 whereas it received Rs.435 million under same head during correspondence FY16-17, he told that MCC received Rs.311 million extra revenue under same head against same correspondence FY16-17.

The collector told that received Rs.3039 million under head of Income Tax (IT) during first 10 months of FY 17-18 while it received Rs.1932 million under head of IT during same correspondence FY16-17, the Collector added thatcustoms received extra Rs.1107 million extra revenue during FY1718 against same correspondence FY16-17.

Customs I&I DG asks all officers to surrender NDP luxury vehicles

Customs Exports recovers Rs 9.62m from M/s Shabbir Cotton Industry

Customs ASO impounds Rs528 million NDP vehicles, items

DG Valuation Surriya to revise VR No 913/2018 on May 28

Customs I&I foils bid to smuggle medical accessories worth Rs5.88m

On instruction of the SC of Pakistan, all the Customs oďŹƒcers have surrendered | SEE pAgE 02 |

Customs Export has recovered evaded amount of taxes and duties of Rs 9.62 m | SEE pAgE 03 |

ASO has impounded over Rs528 m noncustoms paid luxury vehicles and items | SEE pAgE 04 |

DG Valuation has decided to revise the Valuation Ruling No: 913/2016 on May 28 | SEE pAgE 09 |

Customs I&I has foiled a bid to smuggle medicalaccessories(operationsurgicalitems) | SEE pAgE 16 |

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Tribunal reserves verdict of case involving field office of FBR Friday, May 11, 2018

ISLAMABAD: Customs Appellate Tribunal reserved decision on customs matter involving field offices of Federal Board of Revenue (FBR). The bench reserved decision after completing hearing of the matter. The bench had directed the respondents to submit their replies at the earliest. Customs Appellate Tribunal’s bench comprising of members tribunal, Syed Muhammad Anwar and Muhammad Nasir Khan heard the matters.V M/S United Diplomatic Bonded Warehouse and M/s Danial Engineering had filed the references.

Islamabad

customs I&I Dg asks all officers to surrender nDp luxury vehicles

ISLAMABAD

ISLAMABAD

nAEEm uLLAh TARIQ

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ore than three dozens officials of Pakistan Customs Service have moved the Islamabad High Court against a minimum condition imposed for time scale promotions. As many as 37 Superintendents of Collectorate of Preventive Services, Karachi, filed the petition in the high court, stating that the notification is unjustified as they have already completed at least three-years of service in basic pay scale grade BPS-16 and hence are fully qualified for being promoted to the next grade, BPS-17 and if not promoted, many of them will retire before they complete another three years’ of service. In the petition, the officials contended that the issue of conditioning promotion to three years’ of service arose due to misapplication of the notification December 22, 2015, read with Finance Division’s Officer Memorandum of December 18, 2015. The counsel stated in the petition that the petitioners had been working in BPS16 since January 1, 2013, and have thus completed the prescribed length of three years of service on December 31, 2015.

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n instruction of the Supreme Court of Pakistan, all the Customs ofSicers have surrendered all non-custom paid, tampered luxury vehicles, including Land Cruisers, Prados, Pajeros and SUVs etc.

Customs Intelligence and Investigation Director General Shaukat Ali is also among the ofSicers who have given up possession of these vehicles. After the apex court’s notice, the Federal Board of Revenue (FBR) had sought immediate surrender of such vehicles by the ofSicers. According to a letter of Customs Intelligence and Investigation dated April 30, DG Customs has reported the FBR chairman that all ofSicers have surrendered and parked tampered luxury vehicles with few exceptions. And, now all the customs ofSicers have surrendered and parked all non-custom paid, tampered luxury vehicles.

Meanwhile, DG Customs Intelligence and Investigation has requested FBR chairman to take disciplinary proceedings against the ofSicers who are still not ready to surrender such vehicles. According to letters of Port Qasim Collector Model Customs Collectorate Ch Muhammad Javaid and Model Customs Collectorate of Appraisement-East Karachi Collector Arshad Jawwad, in compli-

over three dozens customs officials move Ihc for promotion

ance of Board’s (FBR) direction, the vehicles of the said categories under the operational use of the collectorate have also been surrendered.

Also, both collectorates have requested for allocation of suitable alternate vehicles/resources to perform functions efSiciently as these

vehicles were being used in public work relating to revenue, investigation, litigation handling in various courts and other similar important ofSicial work. Both Collector Model Customs Collectorate, Port Qasim and Collector, Model Customs Collectorate of Appraisement-East

Karachi in their letters have advocated that all such vehicles were being exclusively deployed to perform the operational duties such as antismuggling, recovery of arrears, patrolling, litigation management, port surveillance, warehouses visits, raids for making seizures and arrests etc.

govt reduces non-tax revenues target for fY2018-19 by Rs208b

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ISLAMABAD

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he federal government has cut the non-tax revenues target by Rs208 billion for the next Siscal year (FY2019). The non-tax revenue target was reduced as the country has excluded the Coalition Support Fund (CSF) receipts from the United States from budget estimates.

The government has targeted to generate Rs771.9 billion from the

non-tax revenues during FY2019 as against budgeted estimates of Rs979.9 billion of the outgoing Siscal. Meanwhile, the government has also revised downwards its non-tax collection target to Rs845.2 billion for the current Siscal year from the budgeted estimates of Rs979.9 billion. The government has estimated not to receive CSF amount during ongoing as well in upcoming year, which resulted in reducing the target of non-tax revenues.

The break-up of Rs771.9 billion

showed that government would receive Rs236.9 billion as income from property and enterprise, Rs305.8 billion from receipts from civil administration and Rs229.2 billion from miscellaneous receipts during FY2019. In income from property and enterprise, the government has projected to receive Rs12.8 billion from Pakistan Telecom Authority (surplus), Rs6.9 billion from PTA (3G licenses fee), Rs16.8 billion from provinces mark-up, Rs123.6 billion as mark up from public sector enti-

ties and Rs76.5 billion from the dividends during FY2019. Meanwhile, the break-up of Rs305.8 billion from receipts from civil administration showed that government estimated to receive Rs5.8 billion under general administration, Rs280 billion from State Bank of Pakistan proSit, Rs15.9 billion defence ( Coalition Support Fund), Rs1.21 billion from the community service and Rs1.5 billion from social services. During the next Siscal year, the government has estimated to receive Rs8.6 billion

from economic services, Rs15.9 billion under foreign grants, Rs31 billon from citizenship, naturalization and passport fee and Rs10 billion under discount retained on local crude oil prices. Similarly, the government would receive Rs16.8 billion from royalty on crude oil, Rs36.5 billion as royalty on natural gas, Rs5 billion as windfall levy against crude oil, Rs2 billion as petroleum level on LPG, Rs34 billion as extraordinary receipts (UNO), Rs50 billion as extraordinary receipts (others).

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SHC disposes of Hino dumper truck case KARACHI: An appellate bench of Sindh High Court (SHC) comprising Justice Munib Akhtar and Justice Agha Faisal ordered release of a Hino Dumper truck of 2004 model.

The bench upheld an order passed by the Special Customs Appellate tribunal in favor of owner Taj Muhammad. The vehicle was detained by the Port Qasim Authority on ground that it was a smuggled vehicle with its chasis tampered. The bench today heard final arguments by Ms Dil Khurram Shaheen advocate, counsel for petitioner and counsel for Pakistan customs after which it ordered customs to implement the order of the tribunal and release the vehicle forthwith.

Shc adjourns hearing of petition seeking refund of bid money

Friday May 11, 2018

Karachi

customs Exports recovers Rs 9.62m from m/s Shabbir cotton Industry

KARACHI

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he Sindh High Court has adjourned hearing of a petition seeking refund of 25per cent bid money from Sukkur Customs till May 14. The petition was heard by a SHC division bench comprising Justice Munib Akhtar and Justice Agha Faisal. An auction purchaser, Haji Mohammad, of a consignment of cigarettes moved the court seeking an order for return of his bid money as according to petitioner item put in auction was changed later by custom officials. The petitioner relied on the orders of Federal Tax Ombudsman also which ordered release of items sold through auction.

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fBR, Sindh Excise Dept vow to resolve tax issues KARACHI

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he Federal Board of Revenue (FBR) has assured the officers of the Sindh Excise Department that issues of disbursement would be resolved as early as possible. According to the details, a meeting of Director Admin Excise Waheed Sheikh was held with the Chief Commissioner of the Inland Corporation Regional Tax Office, Fazal Muhammad Abrejo, over the disbursement issues. The team of Sindh Excise Department besieged the FBR building on the disbursement issue on account of property tax worth Rs 3.2 billion for which a notice was also served a month ago. The team of Sindh Excise Department was sealing the FBR building but Fazal Muhammad Abrejo and chief commissioner Federal Board of Revenue (FBR) RTO II reached the site and asked for negotiations.

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KARACHI

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he Customs Export has recovered evaded amount of taxes and duties of Rs 9.62 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Shabbir Cotton Industry availed undue beneSits and concessions by importing fabric cutting machines and liquid chemicals by misusing the SRO 561 through Examiner Aslam Sultan Awan on September 17, 2017. Sources said that the company was allegedly involved in tax evasion of Rs 8.14 million. Investigation was continued, after detecting the tax evasion; the Customs Export issued it with a Sinal notice on April 9, 2018 to deposit the evaded amount within 14 days.

After receiving the notice, the management of M/s Shabbir Cotton Industry, Karachi deposited the evaded amount in the ofSicial account of the Customs Export .

Another Company, the management of the M/s Exclusive silk Embroidery, (Sher Shah Karachi) also cleared Rs 1.48 million of taxes and duties. Sources told that M/s Exclusive Silk Embroidery also availed undue beneSits and concessions and avoided paying taxes according to the customs bylaws.

The Customs Export authorities

served on it a Sinal notice on April 11, 2018, the management of the M/s Exclusive Silk Embroidery deposited the evaded amount of taxes on April 27, 2018.

Meanwhile, The Customs Export has recovered evaded amount of taxes and duties of Rs 9.28 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed

After receiving the notice, the management of m/s Shabbir cotton Industry, karachi deposited the evaded amount in the official account of the customs Export

pcA detects tax evasion by Zubairi Steel works

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KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 12.48 million by M/s Zubairi Steel Works, Karachi, it is learnt here. Sources told Customs Today that M/s Zubairi Steel Works, imported a consignment of silver and steel scrape, steel rods and punching machines and got it cleared

from the PICT Karachi vide GDs on September 8, 2017 by paying customs duty very low at 8 percent after claiming the benefit of the SRO 571/2007. However, the subject items were correctly classifiable under the PCT 3248.2409 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/shortpaid Rs12.48 million. The goods were cleared by Appraiser Mumtaz Hai Aiwan. Sources told that the im-

porter violated the provisions of Section 49 (7-A) of the Customs Act-1969, Section 87 read with Section 69 of the Sales Tax Act1990 and Section 08 of Income Tax Ordinance 2001 punishable under clauses (177) and 120 of Section 36(9) of the Customs Act-1969, Section 11 of the Sales Tax Act1990 and Section 69 & 47 of Income Tax Ordinance 2001 and Section 3-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007.

that M/s RR Plastic availed undue benefits and concessions by importing crystal dana (hard and soft multiple color) by misusing the SRO 558 through Examiner Mateen Bilgrami on November 10, 2017. Sources told that the company was allegedly involved in tax evasion of Rs 5.47 million. Investigations were continued, after detecting the tax evasion; the Customs Export issued it with a final notice on April 13, 2018.

Rupee makes ‘recovery’ in open market he Pakistani rupee made slightly recovery against the US currency in open market and remained unchanged in interbank. As per the local money market, the greenback lost five paisas in open market for buying at Rs 118.25 and for selling at 118.55. The dollar closed firm in interbank for buying at 115.50 for selling at 115.70.

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Court approves judicial remand of accused involved in smuggling Friday May 11, 2018

Lahore

LAHORE: The Special Court of Customs Taxation and Anti-Smuggling has sent accused Shoaib Hafeez Khan to jail on judicial remand for 14 days who was arrested in smuggling of huge quantity of heroin. He was brought to the court by Customs Investigation and Prosecution team.

According to the details, Shoaib Hafeez Khan was arrested while carrying eight kilograms of heroin from Allama Iqbal International Airport Accused was attempting to smuggle heroin from Lahore to Dubai.

Customs officials have intercepted him while he was trying to clear his luggage. On suspicious activities customs officials searched his luggage and recover eight kilograms of heroin which was tactfully hidden in his suitcase.

customs Appellate customs ASo impounds Rs528 Tribunal upheld million nDp vehicles, items redemption fine on vehicle LAHORE

LAHORE

SAJID nAwAZ

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ustoms Appellate Tribunal has ordered to reduce the personal penalty on the vehicle owner from Rs 50, 000 to 25000 and upheld the penalty imposed on vehicle in case Siled by the Muhammad Din against Superintendent of Customs Anti-Smuggling Organizations (ASO) and others.

According to the details, on the pursuant of information received, the staff of Anti Smuggling Organization, Customs Collectorate, Sialkot intercepted a Hino truck was loaded with the scrape of different type. On demand, driver failed to produce legal document showing lawful import of vehicle and goods as well and same were detained under sec-

fST seeks reply from fBR on complaints filed by employees division bench of Federal Service Tribunal redirected the Federal Board of Revenue to submit reply before the tribunal in cases seeking grant of time-scale. A FST bench, comprising Syed Rafique Hussain and Syed Muhammad Hamid, heard the cases filed by employees of the Federal Board of Revenue (FBR). The bench sought board’s reply on a number of matters being contested by employees of the board. Around 40 appellants had filed complaints regarding grant of time-scale including Mansoor Ahmed, Nadeem Khan, Khuram Azam, Babar Ahmed, Naheed Sultana and others. They had submitted that board administration had not heard their petition in this regard. Hence, the tribunal may issue an appropriate direction to the board in this regard. –CB Report

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tion 168(1) of Customs Act 1969.

During the examination of goods and vehicle customs authorities found that goods and vehicle is smuggled and conSiscated under the Customs Act 1969. After show cause notice, adjudication proceeding were culminated and Order-inOriginal was passed with remarks that goods are conSiscate out rightly and Rs50, 000 personal penalty imposed on the respondent.

Being aggrieved with order and Siled the appeal before the Customs Appellate Tribunal on the grounds that Order-in-Original passed in mechanical fashion without consideration of law and ONO is liable to set aside, on the other side, respondent denied all allegations and appeal for rejection of case. After hearing the arguments from both sides, Member Judicial bench-I Muhammad Shabbir Gujjar, decided the appeal with remarks that redemption Sine on vehicle.

m hAYAT

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ollectorate of Customs Preventive Anti-Smuggling Organization (ASO) has impounded over Rs528 million non-customs paid luxury vehicles and items registering over 126 cases during the four months from January-April 2018.

The ASO set up a record by increasing the recovery by 184% as compared to the operation of past four months. CAS Siled 126 cases by conSiscating smuggled goods and non-custom paid cars of worth millions of rupees. According to Customs Preventive, ASO Siled 84 cases from 1st January 2017 to 30 April, 2017 whereas 126 cases were Siled during the past four months.

Similarly, smuggled goods and non- custom paid cars of worth

Rs184 million were confiscated in first four months of last year whereas CAS increased the recovery by 184% and set a record by confiscating luxury non-custom paid vehicles and smuggled goods of worth Rs528 million. On the directions of Collector Customs Faiz Ahmed, Additional Collector Customs Tayyaba Kiyani constituted a team consisting Superintendent Nasir Tarar, Agha Qadeer Haider, Inspector Amjad Khan, Nasir

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Saeed, Sajjad Bukhari, Maratib Mushtaq , Saeed Randhawa, Saleem Shahid and Azam Watoo in the supervision of Deputy Collectr Custom Moazzam Raza. The team on the information of their informers took action by establishing check posts and registered 91 cases by recovering smuggled stuff of worth Rs464 million whereas registered 35 cases by recovering non-custom paid vehicles of worth rupees 64 millions.

court approves physical remand of fST reinstates fBR union president accused involved in mobile smuggling he Federal Service Tribunal IV/2015 dated February, 2015, is-

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he Duty Judge of the Special Federal Court of Customs Taxation and Anti-Smuggling has approved two days physical remand of the accused, who was arrested in smuggling of mobile phones accessories and some other items as well.

According to details an accused Safdar Khan was arrested by the customs authorities from Multan International Airport. Customs airport authorities conducted an operation on intelligence information and arrested an accused Safdar. Customs preventive of Multan

airport recovered a smuggled and non customs paid mobile phones that he was trying to smuggle by hiding in his luggage. Customs also recovered accessories of Mobil phones from his possession. Worth of the recovered items is more than Rs 1m in local market. The accused has caused huge loss to the national kitty in the wake of duty and taxes.

Customs Investigation and Prosecution team presented him before the customs court for getting his physical remand to investigate more on the issue that was approved by the court. –CB Report

has reinstated the FBR Union central president after three years. The FBR Union president Mian Abdul Qayyum was dismissed from service along with several other union ofSice-bearers around three years ago for union activities and raising voice against high ofSicials’ corruption.

More than 19 low cadre officials were also dismissed while five employees of low rank were suspended from services without any serious allegation in February 2015. A notification No 0550-IR-

sued by revenue division of FBR, had notified his dismissal from service. Disciplinary proceedings were initiated against Mian Abdul Qayyum, Inspector Inland Revenue Regional Tax office, Lahore vide charge-sheet dated 27-02-2014 and addendum dated 03-04-2015.

His services were also placed under suspension from 04-03-2014. The FST has now restored the central president of Federal Revenue Alliance Employees Union Mian Abdul Qayyum to service, who has also taken the charge. –CB Report

fTo seeks evidences from petitioner in tax refund appeal

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LAHORE

m ImRAn mEhAR

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he Federal Tax Ombudsman (FTO) on Monday heard an appeal Siled by proprietor of M/s Safder Ali against Corporate Regional Tax OfSice (CRTO) until the next date of hearing. The FTO also sought evidences and other relevant details to

decide the case. According to the details, FTO advisor Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the CRTO had failed to release the tax refund of the last two years claimed by the company. He said that the CRTO collected excessive tax during the last two years. He approached the commissioner concerned many times for issuance of refunds but the

CRTO ofSicials did not pay the refunds after the passage of reasonable time. At the end, the company decided to approach the FTO, seeking interference in this case. The counsel appealed the FTO advisor to direct the CRTO to clear the refund claims.

The counsel further said that CRTO should refund the excess collection in wake of taxes by the end of Sinancial year but the situation is quite other-

wise. Delay in issuance of refunds put burden on the taxpayers, he said, adding that the CRTO Lahore should make audit of the cases and release the extra amount collected by it from the taxpayer. After hearing the arguments from both sides, FTO advisor adjourned the case for next date for further hearing and directed the parties to appear on said date to present arguments in the case.

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MULTAN

ImRAn ALI

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ultan ustoms Anti-Smuggling Organization has seized worth Rs139.72 million of non-customs paid vehicles and articles during their various operations in April.

Sources told Customs Today that Customs Collectorate has fully accelerated anti-smuggling operations in the jurisdiction on the special directives of Federal Board of Revenue to prevent smuggling of non-paid vehicles and miscellaneous goods.

In the Sight against smuggling activities, the department has striven hard to maintain a proper balance between control and trade facilitation to ensure speedy Slow of legitimate consignments at the entry

Friday, May 11, 2018

and exit points.

Multan Customs carried out various anti-smuggling operations on the directions of Collector Ambreen Ahmad Tarar and Deputy Collector Saqib-ur-Rehman Warraich. AntiSmuggling Organization has detected 29 cases during their vigorous crackdown in the month of April 2017-18. Multan Customs impounded 20 vehicles of non-customs paid and tampered of worth Rs48.8 million during the corresponding period. The seized vehicles include Toyota Land Cruiser, Toyota Premio, Toyota vitz, Honda Civic, Toyota Hilux Surf and others. Anti-Smuggling Organization has captured Afghan Transit Trade shipments, sulphonic acid and other goods in their active operations.

On the other hand, Multan Customs was able to detect only nine seizures

cases of goods and vehicles worth Rs14.15 million during the corresponding period of April 2016-17.

Multan Customs has shown exceptional performance in the month of April due to active participation of Sield staff. Customs Investigation and Prosecution (I&P) lodges FIR on eight offenders in the charge of smuggling under customs act during April. Anti-Smuggling Organization is on toe 24/7 and all the points of entry and exit in the jurisdiction are being choked to prevent smuggling.

Sources told that Multan Customs continued to make achievements in anti-smuggling work without compromising the objectives of trade facilitation. Anti-Smuggling Organization has bolstered up intelligence exchange and co-operation with lawenforcement agencies to curb smuggling in the jurisdiction.

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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

Economy not ready to take fresh start

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he economy of Pakistan waded through various ups and downs in the current fiscal year. During the days of Finance Minister Ishaq Dar, the value of the Pakistani rupee remained stable, inflation was contained and over four percent in GGP was recorded.

However, power supply could not be improved to the desired level, the volume of imports multiplied and exports visibly declined, creating trade deficit of over $20 billion. The security situation remained a problem area while the tax collection system also could not be improved. The tax to GDP ratio is also the lowest in the region and even in the world and the government failed to enhance tax base. Instead, it imposed a host of indirect taxes and probably Pakistan has become one of the heaviest taxed countries in the world. The political polarization has increased and the elected prime minister packed home during the first half of the fiscal year 2017-18 as well as the finance minister also had to leave the office. All of a sudden change in the political perspective of the country has adversely affected the economic variables. The game of gains achieved and gains lost has kept the country away from achieving a sustainable growth.

As a new finance minister has been installed, the much publicized macroeconomic stability has lost its tempo. The foreign exchange reserves are gradually decreasing and the look of the economy for the next six months is not very much promising. The International Monetary Fund has started pulling the strings and the government had to take various steps to increase revenues, including imposition of a regulatory duty on various imported goods, devaluation of rupee and the petroleum prices have been increased. The government has over all failed to deliver in almost all the sectors. Keeping in view the present state of affairs, the future of economy is not very much unpredictable.

Elections are expected to be held in the second half of the current year, but its repercussions will be heard in the next fiscal year after June. The new finance team has been burdened with handling the risks not only on the external front, but also growing internal financial mismanagement. Pakistan is a classic case of misplaced priorities where the official hierarchy lacks abilities and qualifications to repair the damages.

Dilemma of pakistan’s external financing A

LAHORE

DR AfTAB AfZAL

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ccording to newspaper reports, the foreign loans of the country have steadily been piling up as the current account deficit are increasing day by day and external financing needs a whopping $13 billion during the next fiscal year. In a bid to decrease imports, the government has depreciated the value of Pakistani rupee, increasing the volume of foreign loans by the same percentage.

It is difficult to understand why the policymakers are ever ready to knock down their wisdom when they go to any decision making exercise. Depreciation

of rupee has always brought disaster for the national economy and it is not a one day experience, but the nation suffered years of underdevelopment due to this unwise step in the past.

Reports suggest the State Bank of Pakistan could freeze the foreign currency accounts after it borrowed $6.12 billion from domestic commercial banks to prop up the fast-depleting gross foreign exchange reserves. The government of the PML-N is probably going to commit the same mistake in its closing days as it had done after the country tested nuclear devices in 1998 and had frozen the foreign currency accounts of the private depositors. A government offi-

cial claimed that the country needed up to $13 billion which is equal up to 5.3 percent of the Gross Domestic Product. The net financing gap this year will be up to $2.5 billion, but nothing can be said for sure. According to the World Bank the macroeconomics conditions of the country have significantly worsened. The recent devaluation has added insult to injury and some experts believe the government took this step on the insistence of the International Monetary Fund. The Finance Ministry has already admitted that its public debt, exclusive of $2 billion private sector external debt obligations, have reached $6.1 billion. In this

situation, the requirements of the gross external financing would reach $20.6 billion, which are more than $2.5 billion than the finance ministry claimed. Ironically, the government officials claim the country has continuously maintained the foreign exchange reserves at a healthy level despite internal and external pressures. The overall situation shows the government is likely to consult the IMF again and this would add extra burden on the economy.

The Finance Ministry has already been rejecting some reports about gross external financing requirements of the country during 2018 and no one knows who is telling the truth.

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Rs10m tax dues: FBR freezes PIA accounts KARACHI: The Federal Board of Revenue (FBR) has frozen all bank accounts of the Pakistan International Airlines (PIA) over non-payment of outstanding tax dues.

According to reports, the PIA under federal excise duty had to pay Rs10 million to FBR, but the national carrier could not make the payments as yet. The FBR, in action, froze all the PIA accounts, prompting difficulties to the latter in payment of salaries to the employees as well as running flight operations.

Apart from payment of salaries and pensions, PIA is also struggling to acquire fuel for its jets as the national carrier is unable to pay suppliers. The accounts were frozen and even after the passage of three days, no progress has been made. As per the reports, the talks between the PIA and the FBR also bore no fruits.

customs Exports foils bid to smuggle antiques at kIcT KARACHI

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ustoms Collectorate Exports has detained a consignment of antiques at Karachi International Container Terminal (KICT), at Badruddin, West Wharf. According to details, owing to the efforts of Collector Saqif Saeed, Additional Collector Shafqat Niazi and Deputy Collector Zehra Tahir Naqvi, several antiques mostly statues of Buddha and Greek kings / queens have been detained at Karachi International Containers Terminal (KICT). An FIR has also been lodged against M/s Natasha Enterprises and its clearing agent M/s Zaman & Co for attempting to smuggle out antiques including statutes in the garb of Artificial handicraft replicas. The said items were being smuggled to Hong Kong through sea route. M/s Natasha Enterprises filed Goods Declaration (GD) through their clearing agent M/s

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Friday May 11, 2018

National

Dg Valuation Surriya to revise VR no 913/2018 on may 28 D

KARACHI

wAQAR AhmED AnSARI www.customsbulletin.com

irectorate General of Customs Valuation Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 913/2016 on May 28, it was learnt. According to the details, Surriya Butt said that the department was reviewing suggestions from various importers to set new prices of photo copier machines. She said some valuations which were issued in 2016 were being reviewed from the beginning.

Moreover, the valuations will be set in view of the rising prices in the international market. Sources told Customs Today that a petition was Siled with the Customs Valuation in which change in prices of photo copier machines was requested.

Sources further told that Valuation Ruling No: 913/2016 was issued on 23 August, 2016. A meeting was held with the stakeholders on 3 May, 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 for-

eign manufacturers of the items in question through which the actual current value could be ascertained.

Meanwhile, The Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 941/2016 on June, 6, 2018, it is learnt.

Sources told Customs Today that Surriya Butt was reviewing suggestions from various importers to set new

prices of olive oil (HS Code 1509.9000) . She said some valuations which were issued in 2016 were being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international market.

Sources said that a petition was Siled with the Customs Valuation in which change in prices of olive oil (HS Code 1509.9000) was requested. Sources further told that Valuation Ruling No:

941/2016 was issued on 30th September, 2016. A meeting was held with the stakeholders on April 20, 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 items in question through which the actual current value could be ascertained.

north Region faces Rs534m shortfall in revenue collection S. Zaman & Co for export of the items declared to be Artificial handicraft replicas and was marked for examination by the risk management system in WeBOC. DC KICT Zehra Tahir Naqvi and Appraising Officer Altaf ur Rehman carried out physical examination to check actual description of the goods. On suspicion the goods were detained and Department of Archaeology and Culture, National Museum of Pakistan, Karachi was requested to send a team of experts for inspection of the detained goods.

During examination the experts of Department of Archeology and Culture confirmed that 16 out of 21 objects are antiques.

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he Customs North Region suffered a shortfall of Rs534 million during month of April Siscal year 2017-18 under all heads due to imposed restriction on import of 581 food items in order to reduce import bill through SRO 1067(l) 2017 dated 20-10-2017.

Sources of North Region told Customs Today that during the above said period the government made amendment in Import Policy Order, 2016 and imposed conditions on the goods to be approved by Ministry of National Food Security and Research and approval from animal quarantine department on various food items.

Sources told that due to said conditions huge quantity of food items were not cleared through Pak-Afghan

Torkham border which caused loss of revenue during the month of April.

The sources told that the North Region, which comprises of Islamabad, Peshawar, Samberial and GilgitBaltistan (GB), was assigned revenue collection target of Rs2999.09 million under all heads during month of

April FY17-18 whereas it received Rs2464.43 million. It was told that North showed -17.83% difference against assigned revenue target for month of April FY17-18. The sources told that Islamabad Customs earned Rs.1427 million under head of all taxes against assigned revenue tar-

get of Rs.1281.83 million, it added that MCC showed 11.33% increase against assigned revenue collection target whereas the MCC Peshawar earned Rs.1187.32 million under all heads against assigned revenue collection target Rs.1709 million, the MCC Peshawar showed -30.56% shortfall during month of April FY1718 against assigned revenue target. It was told that during month of April FY2017-18 MCC Samberial earned Rs.-149.92 million under all heads against assigned target of Rs.-37.53 million, it was added that during the said period Customs Samberial showed 299.46% difference against assigned revenue target, the sources said that GB was assigned Rs.44.89 million of revenue under all heads while it earned zilch due to strike of importers sine 1st April FY17-18 against installation of WeBOC against One Customs system.

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SHC reserves verdict on enhancement of value Friday May 11, 2018

National ASo seizes nDp Indian black, vehicle from gT Road

KARACHI: A customs appellate bench of Sindh High Court (SHC) comprising Justice Munib Akhtar and Justice Agha Faisal on Monday disposed of two identical petitions challenging the enhancement of custom value by Director General, Valuation in violation of section 25-D of Customs Act 1969.

The bench first heard a petition by Zahid World Corporation, importer of tiles from different sources. The second petition was filed by AMA Corporation.

wazir ujan involved in smuggling of contraband cigarettes, Shc told

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he Anti Smuggling Organization (ASO) seized huge quantity of Indian black piper along with offending vehicle (vehicle use for carrying smuggled goods) from GT Road Rawalpindi. Sources told Customs Today that on tip of information shared by Collector Irfan ul Rehman that a Mazda truck loaded with Indian origin black piper coming from Azad Kashmir will try to cross the jurisdiction of MCC Islamabad, he passed on said information to Assistant Collector ASO Majid Gadd who established a picket under the supervision of Superintendent Malak Abad Hussain and Inspector Syed Ali Shah who intercepted the above said Mazda loaded with 1800 kilograms of Indian origin black piper. The sources told that after interception the ASO staff asked the possessor of said smuggled goods to show if they got any proof of seized goods that they are not smuggled one but possessor failed to do so.

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26 customs officers of BS-17 join STp wenty six probationary officers of Pakistan Customs Service have assumed the charge as Assistant Collector (Probationer) (BS-17) at Directorate General of Training & Research (Customs), Karachi. The officers took the said charge at Karachi Customs DGTR for the Specialized Training Programme (STP) with effect from April 9 after completing Common Training Programme (45th CTP). Following are the officers who joined Karachi Customs DGTR for the Specialized Training Programme (STP): Nadia Aslam Muhammad Ahmad Zaheer Muhammad Ali Asif Hafizah Laraib Ghaffar Beenish Rasheed Syeda Sidra Munawar Kazmi Muhammad Mudassar Rafique Zohrain. –CB Report

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irectorate of Intelligence and Investigation Director Fayyaz Anwar on a contempt petition filed by Wazir Ujan son of Sachal against seizing of his 55 cartons of cigarettes informed the Sindh High Court (SHC) that the petitioner is involved in smuggling of confiscated goods. A two-member bench, headed by Justice Munib Akhtar was hearing the petition.

During the hearing, counsel of Fayyaz Anwar Director Directorate General of Intelligence & Investigation-FBR informed the court that petitioner’s case involves serious allegations of smuggling and transportation of

smuggled goods, the goods carriers are liable to be confiscated, therefore, court may reject his petition. The court directed peti-

tioner to file rejoinder on next date of hearing. Earlier, counsel for the petitioner stated in his contempt petition that customs offi-

cials seized 55 cartons of cigarettes and vehicle bearing registration number JY-4447. When petitioner approached the court, the court directed customs department to release his goods and vehicle, however, officials of the customs department are not following court order. Citing Secretary Revenue Division, Collector of Customs Adjudication and Fayyaz Anwar Director Directorate General of Intelligence & InvestigationFBR, he pleaded the court to declare the act of the respondents as illegal, mala fide and arbitrary. He also pleaded the court to start contempt proceedings against Secretary Revenue Division, Collector of Customs Adjudication and Fayyaz Anwar Director Directorate General of Intelligence & Investigation-FBR.

gwadar customs seizes huge quantity of Iranian diesel, hashish worth Rs5.20m T

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he Customs Collectorate has seized huge quantity of Iranian diesel and hashish worth Rs 5.20 million on Wednesday.

Sources told Customs Today that Deputy Collector Gwadar received secret information that some smugglers are trying to smuggle Iranian diesel and hashish out of Gwadar city.

He constituted a raiding team of the Customs Anti-Smuggling Organization (ASO) under the supervision of Customs Preventive Inspector Mubashhir Ali Khan. The team, during a search operation near Jewani Highway, intercepted oil tanker bearing registration number GMZ. 2478.

During the search operation, the team impounded 22,000 liter of Iranian diesel and 5 kilogram of hashish worth Rs 5.20 million. The team

took into possession all the diesel and hashish, arrested two smug-

glers. Source told that investigations are still going on from arrested per-

sons, after investigation FIR will be registered against smugglers.

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Govt gives FBR authority to recover CGT on foreign transactions KARACHI: The government, after amending Income Tax Ordinance 2001, has given the Federal Board of Revenue (FBR) authority to recover capital gains tax on transactions made abroad on assets located in Pakistan.

According to said an amendment introduced into Income Tax Ordinance 2001 through Finance Bill 2018, “Any gain from disposal made outside Pakistan, of an asset located in Pakistan, shall be considered as Pakistan source income.”The official sources said that several foreign companies avoid taxes by dealing with other foreign partners on sale purchase agreements of assets located in Pakistan. Energy and other companies are taking advantage of a lacuna in the income tax laws, they added.

fBR cuts customs clearance requirements in compliance with TfA KARACHI

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he Federal Board of Revenue (FBR) has cut Customs clearance requirements in compliance with the Trade Facilitation Agreement. The FBR reduced documentary and data requirements which were introduced as Economic Operator Program (EOP) through the Finance Bill 2018. The EOP has been aimed at lowering documentary and data requirements; low rate of physical inspections and examinations; rapid release time; payment of deferred duty, taxes, fee and charges; use of comprehensive or reduced guarantees; a single Customs declaration for all imports or exports in a given period; and clearance of goods at the premises of the autho-

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rised operator or another place authorised by the Customs authorities.

Chartered accountants at PwC A F Ferguson & Co said member countries of the World Trade Organization (WTO) concluded TFA in 2013. Under this agreement, members have agreed to expedite the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between Customs and other appropriate authorities on trade facilitation. The chartered accountants said TFA also contained provisions for technical assistance and capacity building in this area. Another measure to comply with the TFA is provisional release of imported goods where an offence is detected in respect of goods, which are not liable to confiscation or requiring evidence at a later stage.

National

fBR to collect Rs3,935 billion revenue by end of current fY: miftah

customs court seeks final challan in hSD oil smuggling case KARACHI

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he Customs Court Judge Syed Faiz Rasool Rashdi directed investigation officer to complete investigation and submit final charge sheet against suspect namely Saddam Hussain son of Mufta Ullah diver of Hino Dumper truck loaded 15,000 High Speed Diesel (HSD). During the hearing, investigation officer informed the court that on a credible information, a team of customs department intercepted a Hino Dumper truck bearing registration number TAE-404 and loaded with bagged iron origin High Speed Diesel (HSD) 15,000 liters having market value of Rs14,95,500. He submitted that after the formalities, said Hino Dumper truck was taken into custody and HSD also seized by the customs officials. According to the prosecution, case was registered against above mentioned suspect for violation of under section 2 (s) 16, 157 (2) of the Customs Act, 1969, punishable under section (1) read with sub-section (2) of section 156 ibid and other related sections. After the hearing, court takes first information report on court record and directed investigation officer to arrest the culprits who involved in this crime, complete investigation and submit final charge sheet against suspect within 14 days.

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ederal Finance Minister Dr Miftah Ismail has said that the Federal Board of Revenue (FBR) will collect Rs3,935 billion tax revenue by the end of current Siscal year. “We have more than doubled the tax collection during last Sive years. For the next year we have set Rs4.45 trillion revenue collection target”, he said while addressing a post-budget seminar organised by the Southern Regional Committee of the Institute of Chartered Accountants of Pakistan (ICAP) here at a local hotel.

He said that the budget presented by his government was appreciated by all, adding that anomalies, if any, would be fixed within two weeks. Government has reduced tax rates and now everybody will have to come into tax net, he added. Only 1.2 million out of the total population of 200 million people pay tax. “Salaried class has been provided with tax relief in the budget which would reduce government’s revenue but it will have long term impacts as more people will opt to come in tax net”, Ismail

Friday May 11, 2018

told the gathering. The finance minister said that the country would have to go to IMF for financial assistance if the government fails to curtail trade deficit. However, Dr Miftah Ismail said that there would be no need to resort to IMF programme due to the measures taken by the incumbent government. “I am leaving the goods in order by May and if the next government (caretaker) keeps the things as normal by June we will not be required to go to IMF”.

“What IMF wants us to do if we do

that then there would be no need for the programme. We need to correct our financial affairs by increasing exports and reducing imports,” he emphasised. “We are targeting the inflation rate to be 6 percent for the next year and GDP rate of 6.15 percent, and nominal GDP is expected to be around 12.25 percent. The government expects 11 percent revenue growth”, he noted. President ICAP Riaz A Rehman Chamdia and chairman Fiscal Laws Committee ICAP Ashfaq Tola also spoke on the occasion.

Transporters threaten strike against ASo officials

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LAHORE

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ransporters have threatened to go on strike from May 4 against the alleged highhandedness of the Customs Anti-Smuggling ofSicials.

The All Transporter Owners and Workers Alliance (ATOWA) leaders said they would seize all entry and exit points of the provincial capital if their demands are not met by the authorities. Pakistan Goods Transporters Association (PGTA) General Secretary Nabeel Mahmood Tariq said all goods transporters associations, including the PGTA, Pakistan

Mini Mazda Association, All Pakistan Truck Drivers Union, Punjab Goods Transport Association and All Pakistan Truck and Trailers Association, stand united against the un-

just behaviour of trafSic police and other provincial agencies.

“We are fed up with the undue challans, highhandedness of the Customs Anti-Smuggling ofSicials,

alarmingly high rates of toll tax at Lahore Ring Road and illegal toll plazas in the city. Goods transporters are continuously raising their voice and have repeatedly tried to convey their demands to authorities, but no government department is willing to resolve our issues,” he maintained. It is really unjust, Tariq lamented, that trafSic wardens are issuing multiple challans for the same vehicle. It has become a habit of trafSic warden to penalise truck drivers without any trafSic violation. In addition, he claimed that Customs Anti-Smuggling ofSicials are harassing and arresting truck drivers.

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World Customs

Saudi reforms to bring flood of foreign funds

RIYADH: Saudi Arabia’s inclusion in global equity indexes and the planned privatisation of oil company Aramco are expected to bring big inflows of overseas money into the kingdom next year. This should help Riyadh rebuild its financial reserves and fund investment plans after the 2014 plunge in oil prices that cut export earnings and deprived the banking system of funds. Reversing the trend would shift the outlook for an economy which shrank last year for the first time in nearly a decade.

Friday May 11, 2018

SgX daily average trades up 12% to $1.3 billion

Iran hand woven carpet exports at $424m last year

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TEHRAN

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he average daily value of trades on the Singapore Exchange (SGX) rose 12 per cent year-on-year in April to $1.3 billion although the average daily volume fell 26 per cent to 1.8 billion shares, according to the latest statistics from the market operator.

Total turnover for April was $26.7 billion from 21 trading days, up 24 per cent from a year ago, when there were 19 trading days. Total traded volume for the month was 37.9 billion shares, down 18 per cent. The Straits Times Index gained 14 per cent year-on-year to 3,613.93 as at end-April. Month-on-month, the bluechip index rose 5 per cent. The year-to-date average daily turnover grew 15 per cent to $1.4 billion, while the average daily traded volume in the Sirst four months of 2018

uk cheese exports tops £615m mark xports of cheese from the UK have risen 23% on 2016 to surpass the £615 million mark last year, according to the latest figures from HMRC. The data shows volumes of exported cheese rose by five per cent from the previous year reaching just over 170,000 tonnes. While cheddar continues to dominate exports, fresh cheeses and in particular mozzarella saw strong export growth in the year. The lion’s share was shipped to European markets with Ireland, France and the Netherlands remaining the most important destinations.

Shipments to Germany have been declining, although replaced by increased sales to Denmark and Poland.

Figures also show an increase in cheese exports to Asia, mainly to the Philippines, with volumes up 27% year-on-year. –CB Report

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fell 18 per cent to 2.0 billion shares.

Meanwhile, CCRManager, a Singapore Sintech that is tackling the secondary market in trade loans, has raised US$6.5 million in Series A funding from a group of investors led by veteran banker and ex-Temasek Holdings executive, Francis Rozario of Asia Capital and Advisors, it said.

Mr Rozario will join its board of directors, said CCRManager in a media statement. Subscribers to the round

include individual investors from the banking and investment community, family ofSices, and Global eTrade Services (GeTS), a subsidiary of CrimsonLogic, which sells services to governments looking to digitise their processes. Funding from this Series A round will be used to accelerate the growth and expansion of the CCRManager network globally, and to boost the platforms’ product and functional capabilities.

china march scrap metal imports fall 24.6 percent customs

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hina’s scrap metal imports in March fell by 24.6 percent from the same time a year ago as new curbs on foreign solid waste came into effect for the Sirst time, while waste paper imports slid by 54.2 percent and the country imported zero plastic.

New impurity limits – set at 1 percent for nonferrous metal, and at 0.5 percent for paper, plastics and ferrous metal – were announced by China last year and had already impacted ship-

ments but only ofSicially came into force. Meanwhile, During the Sirst two months of 2018, Chinese fruit imports increased by 22% in volume and 58% in value. The main products that contributed to this growth were cherries, oranges, blueberries, and bananas.

Chinese cherry imports amounted to a record 135,000 tons, 191% more than in the same period in 2017. Chile achieved a record harvest this season and the country’s. –CB Report

ome 5,400 tons of hand-woven Persian carpets worth $424 million were exported from Iran in the last fiscal year (ended March 20, 2018), registering an increase of 18.11% in value compared to the year before, statistics from the Islamic Republic of Iran Customs Administration show.

Persian hand-woven carpets are exported to about 80 countries. The United States, Germany, Italy, the United Kingdom, Switzerland, Lebanon, the UAE, Kuwait, Qatar and Japan are traditional buyers of Iranian carpets. Hamid Kargar, chairman of Iran National Carpet Center, said new customers have emerged in recent years, namely China, Russia, South Africa and some Latin American countries, IRNA reported. International economic sanctions imposed on Iran over its nuclear energy program have hampered Iran’s carpet industry.

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high prices turning Russians off seafood ussia’s overall catch has been on a consistent rise. In 2010, Russia’s total catch reached 4.2 million metric tons (MT). In 2012, that Sigure had increased to 4.33 million MT. By 2016, total Sisheries were 4.6 million MT, and last year was record-breaking, with totals cresting 4.9 million MT, according to the Russia’s Federal Agency for Fisheries. Yet paradoxically, the average consumption rate of Sish by Russians within the same period has drastically decreased, by more than 50 percent. The decline is linked to sharp increases in prices, which have made seafood unaffordable for many people.

The high prices themselves have been

foreigners bought record Saudi stocks

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oreigners bought a record $384 million of Saudi Arabian stocks on a net basis last week, showing international interest in the market is continuing to grow ahead of the planned listing of oil giant Saudi Aramco in Riyadh late

this year or early next.

Foreign investors purchased $615 million of stocks and sold $231 million in the week through Thursday, compared to net buying of $206 million in the previous week, exchange data showed on Sunday.

The previous record for net buying was $367 million in the week to March 15. Foreigners have been net buyers every week this year for a

Meanwhile, As part of the President Hassan Rouhani administration’s push to curb mobile phone’s smuggling, the Registry Scheme went into full swing a. Following the move, government revenue from customs duty and imports tax levied on cellphones hiked 2.7 times. During the year ending in March 2017, the value of imported handsets into the country was 5 trillion rials ($119 million), which reached 136 trillion rials ($3.23 billion) in the next year; the increase translates into a 172% jump in government revenue from 900 billion rials ($21.4 million) to 2.45 trillion rials ($58.3 million).

The numbers were reported by Hamidreza Dehqaninia, the ICT head at the Headquarters to Combat Smuggling of Goods and Foreign Exchange, in an interview with Students News Network.

Aimed at reining in cellphone smuggling, the ICT Ministry, Islamic Republic of Iran Customs Administration.

total of $2.76 billion.

Last month global index compiler FTSE Russell decided to upgrade Saudi Arabia to emerging market status, and MSCI is widely expected to make a similar decision in June.

These moves, and the Aramco listing, are expected to attract billions of dollars of fresh foreign money.

Foreigners still own only about 5.0 per cent of the Saudi stock mar-

caused by a wide range of problems that must be tackled if Russia hopes to see its domestic seafood consumption increase. Russia’s higher catch totals over the past several years can be attributed to the integration of Crimea into the Russian Federation in March 2014, as well as by Russia’s subsequent ban on imports from U. S., Australia, Iceland, Norway, and the European Union in August 2014. As a result, the country’s import volume decreased from 1 million MT in 2014 to 450,000 MT in 2016, and Russian Sisheries’ production went from a 50 percent share in the domestic market in 2014 to more than 80 percent in 2017. –CB Report

ket, a lower ratio than in many emerging markets; fund managers think the country could attract around $30-45 billion of equity fund inSlows in the next two years. Data also showed trading by qualiSied foreign institutions (QFIs), which invest in the market directly, exceeded trading by foreigners using the indirect method of swaps by a factor of about three to two last week.

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Egypt’s exports towards South Africa grew by 69% in 2017 CAPE TOWN: South Africa surged by 69% in 2017, the Egyptian trade minister Tarek Qabil (photo) announced last week. Let’s note that although imports fell by 14% ($181 million in 2017 against $210 million in 2016), trade deficit between the two countries decreased to $46.5 million in 2017 from $150.8 million in 2016. Egyptian authorities also hope to boost trade exchanges with other African countries under a recent agreement on the African Continental Free Trade Area (ZLECA), signed in March by more than 40 African countries. For the record, Egypt announced earlier this month its intention to set up a logistics center in West Africa to boost exports.

Six ships take berth at port Qasim ix ships MSC Heidi, MSC Esthi, Express Black Sea, Low Land Amstel, Sakizaya Champion and Clipper Helen carrying Containers, Coal, Soya Bean and LPG were arranged berthing at Qasim International Container Terminal, Multi Purpose Terminal, Grain & Fertilizer Terminal, Engro Vopak Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority. Meanwhile two more ships Wooyang Hermes and ST Cergue carrying Steel product and Coal also arrived at outer anchorage of Port during last 24 hours. Ten ships namely, MSC Heidi, MSC Esthi, Express Black Sea, Daytona Beach, Asma, Low Land Amstel, Ocean Prelate, Sakizaya Champion, Cypress Galaxy and Horizon are currently occupying PQA berths to load/offload Containers, Rice Bitumen, Soya Bean Seeds, Coal, LPG and

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Ports & Shipping

portugal exports €700m in energy to Spain since 2016 A

LISBON

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fter years of importing more energy than it exported, Portugal in 2016 exported €200 million more than it imported, last year exported a net €140.75 million, according to the statement.

It quotes Sanches as saying that the growth in net exports of electrical energy reSlect Portugal’s investment in renewable energy generation. In turn, it adds, “the increase in production from renewable sources has also been a determining factor in the drop in wholesale electricity prices in the Iberian market (Mibel) and in the operation of the respective Iberian systems in recent years.”

It also cites moves to increase cross-border linkages as another “key piece” in the government’s strategy for the sector, “with a view to the sustainability of the national electricity system and the reduction of the tariffs of families and companies.”

Meanwhile, The recent announcement by the UK’s Export Control Organisation (ECO) of a six-Sigure compound penalty for unlicensed exports

signiSies an increase in both export control enforcement and in the penalties being imposed. Export control breaches are criminal offences but, in this case, the matter was dealt with by way of a compound penalty. So what is a compound penalty, and when are they used? Under the 1979 Customs and Excise Management Act, it is a criminal offence to ship unlicensed goods. There is a strict liability offence which covers inadvertent breaches,

and a more serious offence for deliberate evasion of export controls. However, section 152 of the Act provides HMRC with a discretionary power to “compound” offences. The discretionary power, in essence, means that HMRC can offer an offender the opportunity to avoid prosecution in return for the payment of an administrative penalty. HMRC commonly uses this power to deal with export control, duty and excise breaches.

Friday May 11, 2018

Singapore’s factory output grew 5.9% ingapore’s industrial production (IP) grew 5.9% YoY in March 2018. Excluding biomedical manufacturing, output grew 8.6% YoY. The electronics cluster continued on an expansionary path for the 25th consecutive month and gained 12.4% YoY in March, mainly supported by the continued growth in the semiconductors (+18.8% YoY), which has been growing at a double-digit pace for the past 25 consecutive months. Growth in the biomedical manufacturing cluster fell for the second month as it contracted 5.4% YoY in March. UOB economist Francis Tan commented, “The volatility in this cluster is exemplified by February’s initial growth rate of 8.4% YoY (first reported on 26 March 2018) being markedly revised to a contraction of 7.1% YoY in today’s release.

This was probably the main reason for the downwardly revised February IP.” Output in the chemicals cluster gained 8.2% YoY in March, as growth was led by the petrochemicals (+20.4% YoY) segment. –CB Report

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B,desh becomes first new Lng importer in 2018 Palm oil respectively. Cargo throughput during last 24 hours stood at 126,899 tonnes, comprising 104,980 tonnes import cargo and 21,919 tonnes export cargo inclusive of containerized cargo carried in 5,171 Containers (TEUs), (4,166 TEUs imports and 1,005 TEUs exports) was handled at the Port. Chemicals carrier Cypress Galaxy sailed out to sea on Tuesday morning, while two more ships MSC Esthi and Express Black Sea are expected to sail on same day. Four ships, GSL Tianjin, Maersk Chicago, ST Cergue and TRF Bergen carrying Containers, Coal and Chemicals are expected to take berths at QICT, PIBT and EVTL respectively. –CB Report

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angladesh has joined the ranks of LNG importing countries with the arrival of its Sirst LNG cargo at Moheshkhali Port.

This makes Bangladesh the Sirst new country to start importing LNG in 2018, and only the second since January 1, 2017, as Malta was the only new LNG importer last year.

Bangladesh effectively becomes the 41st LNG importing country in the world. A healthy pipeline of LNG projects, gas shortages and the rapid deployment of Sloating regasiSication vessels signal that Bangladesh will be a key LNG importer in coming years, despite commercial challenges like high gas prices.

The Qatar LNG cargo arrived on board the Sloating, storage and regasiSication unit, Excellence, at the

Moheshkhali LNG terminal on Tuesday, and heralds a new era in Bangladesh’s energy sector, State Minister at the Ministry of Power, Energy and Mineral Resources, Nasrul Hamid, told S&P Global Platts.

“We shall continue importing LNG from the global market to meet the country’s mounting energy demand and as part of our decision to diversify energy sources,” Hamid said, adding that necessary supply infrastructure like pipelines is ready.

State-owned Rupantarita Prakritik Gas Co. Ltd., or RPGCL, a unit of national oil company Petrobangla, said commercial supplies of the gas will be fed into the national gas grid from mid-May to meet end-user demand. Bangladesh’s maiden LNG cargo was delivered under a 15-year long-term contract signed in 2017 between Petrobangla and Qatar’s RasGas for 2.5 million mt/year of LNG, priced at 12.5% of the three-

month average of Brent plus an additional 0.5%. Meanwhile, After a 2.5% Sirst-quarter decline on the MSCI frontier index as the only losing Asian component, Bangladesh shares continued to be shunned by foreign investors on the headline Rohingya refugee inSlux now at 800,000, and banking sector balance sheet and management woes with bad loans at 10% of the total. Elections are also due this year with the opposition party leader unable to compete under corruption charges, and sporadic street violence erupting among rival political camps amid Islamist terror threats and military takeover rumors. The Sifth anniversary of the Rana Plaza garment center collapse, which injured and killed thousands, also focused attention on unresolved worker safety issues in the mainstay export industry, as remittances from abroad remain uncertain with renewed local employment emphasis

in the Middle East and elsewhere.

The spring IMF-World Bank meetings passed without a breakthrough on international development agency (IDA) support for the refugee emergency, after long-serving Finance Minister Abul Maal Abdul Muhith, due to retire in his mid-80s, tabled an urgent plea in Washington.

The World Bank has a dedicated $2 billion window in its poor-country IDA afSiliate for global displacement, and Bangladesh may follow Jordan’s previous model and enter a separate “compact” which could promise labor reforms and other investment incentives in exchange for expanded duty-free preferences and aid from major trade partners. In February the minister also revealed a higher recapitalization bill for half a dozen ailing state and private banks, after rescuing Farmers Bank at the end of last year following a depositor run on alleged fraud.

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FIA arrests 11 human smugglers Friday May 11, 2018

Business

FAISALABAD/LAHORE: The Federal Investigation Agency (FIA) teams have conducted separate raids in Faisalabad and Sargodha divisions during the last 24 hours and arrested 11 human smugglers who had extracted millions of rupees from innocents.

One of the accused had also received hefty amount of money in 100 Umra cases.

Meanwhile, Immigration wing of the FIA arrested three passengers over various charges at the Allama Iqbal International Airport.

SEcp appoints seven directors on pSX board ISLAMABAD

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he Securities and Exchange Commission of Pakistan (SECP) has appointed seven independent directors on the Pakistan Stock Exchange (PSX) board with certain conditions on three of them. The corporate sector regulator in its meeting on Wednesday reviewed the 20 names forwarded by the PSX last month.

The PSX board members have been appointed for three years commencing from April 19. Out of the seven new directors, Moin M Fudda and Shehzad Chamdia were also the part of the previous

plastic manufacturers flay tax regime KARACHI

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akistan Plastic Manufacturers Association (PPMA) has criticised the federal budget, saying the proposed measures would badly affect the plastic sector, a statement said. PPMA Chairman Zakaria Usman criticised bringing commercial importers into the minimum tax regime from fixed tax regime, it added.

“We are of the strong view that the current rate of income tax is very high, as our raw material is high-value commodity and importers already pay substantial amount of taxes at the import stage”, Usman said.

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PSX board. However, the SECP has imposed a condition on Mr Chamdia that his membership on the board is subject to confirmation

for acceptance of his resignation

by CDC and its subsidiaries. Ms Naz Khan has been appointed at the female’s reserved seat. The

other members are Syed Masoud Ali Naqvi, Sulaiman Sadruddin Mehdi, Amjad Pervez – subject to the condition that he will resign from the post of adviser to Pearl Securities Ltd. The seventh member appointed on the PSX board is Mr Husain Lawai, along with two condition that in case the sale of Summit Capital (Pvt) Ltd is not materialised till Aug 31, he will resign either from the PSX board or from the board of Summit Bank. The second condition is that Mr Lawai will refrain from being part of any proceeding of PSX board regard any issue pertaining to Summit Capital (Pvt) Ltd, and will ensure independent business judgement without being subservient to any form of conflict of interest.

govt collected Rs1,500b taxes from telecom sector in 15 years T

KARACHI

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he federal government collected Rs 1,499.81 billion as taxes from the telecom sector during the last 15 years.

Since Siscal year 2002-03, the government has pocketed almost Rs 1500 billion from the sector till December 2017. Recently, the Supreme Court (SC) has taken notice of ‘unreasonable’ tax deduction from mobile phone pre-paid calling cards and easy load facilities. The Chief Justice

of Pakistan summoned the Attorney General (AG) and highlighted that there were complaints about taxes on calling cards being unreasonably high. In this regard, the SC also issued notices to the Federal Board of Revenue (FBR) and all four mobile phone service companies operating in the country to appear before the court.

According to the Pakistan Telecommunication Authority (PTA) data, the federal government collected Rs 749.31 billion only in terms of GST and Activation Tax indirectly from consumers in the last 15 years, while Rs 750 million was collected under

other heads. High custom duty and other taxes on the import of mobile handsets and telecom equipment also impede the mobile penetration, it added. At present, telecom consumers are charged 19.5 percent in form of GST and 12.5 percent in form of WHT; while 16 percent GST and 10 percent WHT are charged in other sectors. The Pakistan Telecommunication Authority (PTA), in its latest annual report, admitted that the WHT @12.5 percent on every mobile recharge and tax rates by provincial revenue authorities were still quite high and should be reduced.

Tractor industry urges release of over Rs3b refunds LAHORE

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he Pakistan Automotive Manufacturers Association (PAMA) has appealed to the government for immediate release of the tractor industry’s pending sales tax refunds, which amount to over Rs3 billion. In a letter written to Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan, PAMA Director General Abdul Waheed drew attention to constraints on the indigenous farm tractor industry regarding the blockage of sales tax refunds. “Accumulated sales tax refunds are still rising as the process has completely stopped in November 2017, resulting in a liquidity crunch which is unsustainable and adding to costs substantially,” DG PAMA stated. Agricultural tractors are subjected to sales tax at the rate of 5% while a tax of 17% is levied on procurement of required parts, both local as well as imported ones.

Consequently, in one unit, the amount of input tax is always higher than the output tax. The outcome is an anomaly on a perpetual basis and refunds are increasing on a regular basis. “We have been pleading through our budget proposals, year by year, for removal of this anomaly but so far, our requests have not been paid heed to.

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nAB out to end corruption from whole country: chairman ISLAMABAD

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ational Accountability Bureau Chairman Justice (R) Javed Iqbal has said NAB was trying to eliminate corruption not only in Punjab but from other parts of the country also. He chaired the NAB Executive Board meeting at the NAB Headquarters and the meeting was attended by Deputy Chairman,

Prosecutor General Accountability and senior ofSicers of NAB. He said NAB sun is not shining only in Punjab province but in the whole Pakistan so that darkness of corruption should be replaced with sunlight. He said NAB does not believe in discrimination against anyone and the Bureau will take action against the corrupt as NAB’s policy is to look into the case without caring about the face. He said the main aim of NAB is to recover looted

money from corrupt and deposit all looted money into national exchequer. He directed the NAB DGs to take inquiries, investigations and complaint veriSications in stipulated time. The ofSicers have been directed to pursue corruption cases in the light of available concrete evidence so that the corrupt could be punished. The Chairman NAB after taking responsibilities of the charge of Chairman NAB on Oct 2017, in his Sirst address directed the NAB

ofSicers to take action against corrupt and arrest all Proclaimed offenders and absconders as per law without caring face and concentrate on face on the basis of solid evidence. As a result of chairman NAB’s orders as many as 226 accused persons have been arrested, NAB has authorised over 872 complaints, conducted 403 inquiries and 82 investigations. NAB has also Siled 217 references in the respective accountability courts. Out of which 39 have

been awarded sentences. The EBM meeting was told that two references were Siled against accused Muzaffar Nishat in 2001 and 2011. The accused Muzaffar Nishat was absconder since 2001. He was sentenced by an accountability court in his absence in 2004. NAB arrested accused Mustafa Nishat as per law and the accused applied for plea bargain as per NAB ordinance. The Accountability Court will Sinally approve the plea bargain application.

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LCCI appeals govt to address the reservations of commercial importers LAHORE: The Lahore Chamber of Commerce & Industry (LCCI) has urged the government to address the reservations of commercial importers.

In a statement, the LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid and Vice President Zeshan Khalil said that the commercial importers were being treated under final tax regime and they were allowed audit exemption on the payment of 6 percent withholding tax. This regime is replaced with minimum tax in the budget. Reassessment of raw material and opening of audit cases of commercial importers has also been proposed in the budget. They said that new proposals were injustice to commercial importers and the same would not be acceptable. They said that commercial importers are also feeding the local industries and their difficulties would also hit the industrial sector hard.

cDA urged to resolve key issues of furniture market

Friday May 11, 2018

Chambers

chinese companies want JVs and investment in pakistan

ISLAMABAD

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heikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry has called upon the CDA to focus on resolving the key issues of Furniture Market as due to problems the traders of the market were facing difficulties in promoting business activities. He said this while administering oath to the newly elected office bearers of Traders Welfare Association, Furniture Market, Golra Road, Islamabad.

Muhammad Naveed Malik Senior Vice President, Nisar Mirza Vice President ICCI, Ajmal Baloch President Markazi Anjuman-e-Tijaran and Khalid Chaudhry Secretary Traders Action Committee were also present at the occasion as guests of honor. Sheikh Javed Iqbal was elected as President, Sheikh

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Kashif Senior Vice President, Raja Mujahid Vice President, Sheraz Ahmed General Secretary, Muhammad Muddassar Additional Secretary, Saranjam Khan Coord Secretary and Muhammad Naeem as Finance Secretary. Congratulating the newly elected office bearers, Sheikh Amir Waheed said that the furniture market was lacking in basic facilities like footpaths, street lights, filtration plant and public toilet and stressed upon the CDA to look into these issues for resolution on priority basis. He further said that CDA should allocate a separate place in Islamabad for furniture business. He assured the newly elected office bearers that the Chamber would fully cooperate in resolving their major problems. Speaking at the occasion, Sheikh Javed Iqbal President and Sheraz Ahmed General Secretary, Traders Welfare Association, Furniture Market, Golra Road, Islamabad said that furniture market was a part of Islamabad while all its traders were also in the union council of Islamabad but the market.

ISLAMABAD

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delegation of Chinese companies led by Jia Jiqing, Director, Division of Asian Affairs, Department of Commerce of Shandong Province of China visited Islamabad Chamber of Commerce & Industry and showed interest in JVs and investment in Pakistan to manufacture aluminum products, solar energy products, automobiles and agricultural machinery.

The representatives of Shandong Haitian Seven Color Panel Co., Ltd., Shandong Solar Energy Technology Company, Limited, Wuzheng Group and Agri Products Industrial Limited were in the delegation. Speaking on the occasion, the representatives of Chinese companies said that this was their Sirst visit to Pakistan to explore business opportunities in Pakistani market. They said that in the Sirst phase, they were looking for partners to introduce their products and in the second phase, they would like to enter into JVs and investment in Pakistan.

The representatives of Shandong

Haitian Seven Color Panel Co., Ltd said that their aluminum products were popular in more than 30 countries and regions including UAE, Singapore, India, Indonesia, Russia, Nigeria, Egypt, Brazil and European countries and now they were focusing on Pakistan for their products.

The representatives of other companies also gave detailed brieSing about their products and said that they were looking for partners in Pakistan to introduce their products. They sought the cooperation

and support of ICCI in realizing these objectives. They also invited ICCI delegation to visit Shandong province and explore business collaborations in China. They said that business partnerships between the private sectors of China and Pakistan would also further strengthen bilateral trade and economic relations between the two countries.

Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that under CPEC, 9 Special Eco-

kccI to enhance trade ties with Turkish counterparts KARACHI

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urkish Consul General in Karachi Tolga Ucak has advised the Karachi Chamber of Commerce & Industry to have more interaction with their counterparts in Turkey and the business & industrial community should focus on ‘innovation’ particularly in the textile sector with a view to improve the existing trade volume, besides taking steps to promote tourism opportunities in both countries.

Speaking at a meeting during his visit to KCCI, Turkish Envoy asked Karachi Chamber to further enhance its linkages with Istanbul Chamber of Commerce & Industry which would certainly prove beneSicial for the business communities of the two brotherly countries. “KCCI should or-

ganize visits of maximum number of trade delegations to Turkey which would certainly pave way for smooth trade and investment between the two countries”, he added. Commercial Counselor of Turkish Consulate Murat Mustu, President KCCI Muffasar Atta Malik, Senior Vice President Abdul Basit Abdul Razzak, Vice President Rehan Hanif and KCCI Managing Committee members were also present at the meeting. Turkish Envoy further stated that Pakistan and Turkey can beneSit from each other’s experiences and expertise in different sectors of the economy. He said that Business-to-Business and People-to-People contacts have to be promoted between the two countries whereas exchange of students must also be encouraged. “Turkish students can learn good English from some of the Sinest colleges and universities in Pakistan”, he added. Tolga

Ucak, while expressing satisfaction over improved security environment in Karachi and other parts of the country, stressed the need to introduce Karachi to Turkish people as a safe and interesting tourism destination and hopefully more Turkish tourists would come to Pakistan. “A small ofSice should be established in Istanbul to acquaint Turkish tourists about the tourism potential of Pakistan”, he added. Speaking on the occasion, Commercial Counselor of Turkish Consulate Murat Mustu said that they want to Sinalize Free Trade Agreement between Pakistan and Turkey as soon as possible. “However, negotiations on Sinalizing FTA may face some delays because of the elections in Pakistan and Turkey this year. FTA should be Sinalized in such a manner that it creates a win-win situation for both the countries”, he added.

nomic Zones would be established in Pakistan. He said that the Government of Pakistan has offered tax holiday and other attractive incentives to Chinese entrepreneurs for JVs and investment in these SEZs. He urged that companies of Shandong should transfer technology and set up JVs and investment in these SEZs. He said by investing in Pakistan, Chinese investors could meet the needs of Pakistani market and export to South Asia, Middle East and many other regions.

govt to focus on youth for economic growth heikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry called upon the government to focus on youth development for achieving sustainable economic growth of the country. He said that youth was the greatest asset of the country, but they needed conducive policies and environment to unleash their potential for economic development of Pakistan. He said as per recent report of UNDP, Pakistan was one of the youngest countries in the world as 64 percent of its total population was below 30 years of age. He said with better policies and enabling environment youth could be transformed into a great dividend for the country, but if left unattended, this youth bulge could become a big burden on the economy.

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Multan ASO impounds non-customs paid Toyota Vitz during crackdown MULTAN: Collectorate of Customs Anti-Smuggling Organization impounded a non-customs paid vehicle Toyota Vitz worth Rs.1.2 million during action. According to details, Multan Customs Anti-Smuggling Organization received credible information from their source that smuggled vehicles will be carried out through Sahiwal route. Acting upon the said information, Deputy Collector Multan Customs Saqib-ur-Rehman formed special team of Anti-Smuggling Organization on the direction of Collector Ambreen Ahmad Tarar to intercept said vehicle.

Friday, May 11, 2018

CUSTOMS BULLETIN

Quetta customs I&I foils bid to smuggle medical accessories worth Rs5.88 million QUETTA wAQAR AhmED AnSARI www.customsbulletin.com

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he Directorate of Customs Intelligence and Investigation has foiled a bid to smuggle medical accessories (operation surgical items) include gloves and steel trays worth Rs.5.88 million during checking. Sources told Customs Today that Quetta Customs Intelligence and Investigation Director Muhammad Akram Chaudhary received a tipoff that some smugglers were trying to smuggle medical accessories (operation surgical items) from Quetta to Karachi.

He constituted a raiding team under the supervision of Inspector Mohsin Jalal (Preventive Department) and others. The team enhanced the surveillance on Quetta Dirgi Highway and started search of vehicles. During the search operation, the team intercepted a truck bearing registration no: MCT-645 which was going from Quetta to Karachi. During the checking, the customs team recovered Sive thousand packets of surgical gloves, four thousand sets of surgical items and ten thousand steel trays sets worth Rs5.88 million.

nAB for speedy probes into land scams in karachi KARACHI

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review meeting was held at the National Accountability Bureau’s Karachi ofSice under the chairmanship of Director General Mohammad Altaf Bawany in which progress in ongoing investigations was reviewed.

The spokesman said that with regard to the cases related to land

scams/frauds, several cases were discussed. The DG was told that several such cases had been matured and soon after the completion of investigative work, references would be Siled after approval of the competent authority.

He was further informed that in one such case of illegal allotment of land measuring 5,222 acres located in District Thatta for cattle farming against an amount of Rs15 million to Nasser Abdullah Lootah, the investigative work was in an advanced stage and it would be submitted to the competent authority soon along with the rec-

ommendations of the investigating team. The allotment of land to Nasser Abdullah Lootah contained serious illegalities, which caused losses of millions of rupees to the national exchequer. Regarding the same individual, the review meeting also took under consideration the case initiated on the allegation of illegal allotment of two acres of land in exchange of 15 acres of land in Gulshan-e-Iqbal to Nasser Abdullah Lootah against the nonpayment of occupancy value at Deh Okewari. On this matter, it was brought to the notice of the review board that such allegations

in the complaint regarding the non-payment of occupancy value and exchange were not proved against the alleged person, as the land was a fresh allotment by the Land Utilisation Department, Government of Sindh, and was made against an amount of Rs3.87 million in lieu of occupancy value.

With regard to 30 acres of land located near Alladin Park, it was brought to the notice of the review board that another inquiry into Sive acres allotted to Wasif Qavi was under process, in which Sindings were being compiled. The NAB director general issued in-

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structions to the investigating teams to conclude the cases as per law in line with the directions of Chairman NAB Justice Javed Iqbal.

On May 3, NAB had authorised six investigations. The spokesman for the anti-corruption watchdog’s Karachi ofSice said a regional board meeting (RBM) was held at the NAB ofSice under the chairmanship of the director general of the bureau in Karachi. The meeting was attended by the directors of three investigation wings with investigation teams working on the six cases as well as the legal wing and experts.