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Karachi, Fri May 12, 2017
FAISALABAD
NAEEM SHEIKH
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ollector Customs Collectorate Mohammad Sadiq constituted a committee to facilitate importers. The committee will comprise Additional Collector Ghulam Mustafa, Deputy Collector Falak Shair and President FCCI Rao Sikandar Azam, Sheikh Ashfaq , Muhammad Asghar member execu-
tive committee Rashid Muneer, Yaqoob Awan and a clearing agent. The formation of the committee will be notified within a week. Addressing a meeting of importers and exporters, Collector Sadiq said that the basic objective of the committee is to resolve the issues faced by importers of old machinery and auto parts or to facilitate the FCCI members. He appreciated Faisalabad Dry Port Trust (FDPT) Chairman Sheikh Mukhtar Ahmad for
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abolishing the demurrage period for the time being. He disclosed that 1 percent tax levied by the Punjab government is not in the ambit of Faisalabad custom collectorate. Hence, the matter may be taken up with the Punjab government. He assured that once the examination of containers is carried out there is no need of re-examination by the authority. He has cleared the previous 6 months cases on assumption of charge as collector custom.
Multan Customs recovers non-duty paid smart phones,laptops from airport
Dastgir invites Qatari private sector to invest in Pakistan
MoUs signed with Chinese companies: CM Pervez
Customs Intelligence confiscates non duty paid generators
Rehmatullah Wazir asks taxpayers to resolve issues thru ADR system
Customs sta deputed at Multan Airport has thwarted an attempt | SEE pAgE 02 |
Dastgir Khan invited Qatari private sector to invest in Pakistan and assist | SEE pAgE 03 |
Khattak said two MoUs have been signed with Chinese public sector companies | SEE pAgE 04 |
Customs I&I authorities seized million of rupees NDP diesel generator of 650 KVA | SEE pAgE 14 |
FBR Member Operation-IR Rehmatullah Wazir has asked the taxpayers to resolve | SEE pAgE 16 |
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Faisalabad Collector Sadiq reshuffles two inspectors Friday, May 12, 2017
FAISALABAD: The Collector Customs Collectorate Muhammad Sadiq has reshuffled two customs inspectors with immediate effect. According to a notification issued by Collector Sadiq Inspector Masood Saeed Chohan has been transferred to Anti Smuggling Organization (ASO) Faisalabad and will also perform duty at Faisalabad International Airport in shift-B and will also peform additional duty at Import Examination DRRA branch. Furthermore Inspector Khalid Ashraf Noor also assigned duty at Faisalabad Airport traffic in shift-C from Anti Smuggling Organization (ASO).
National
Multan customs recovers NDp smart phones, laptops from airport
Hyderabad customs honours incoming, outgoing collectors HYDERABAD
ASLAM ANJuM QurESHI www.customsbulletin.com
he officials of the Customs Collectorate organized a ceremony in honor of incoming and outgoing collectors. Incoming Collector Ikhlaq Ahmad Khattak was welcomed on the arrival to Hyderabad while outgoing Collector Agha Shahid Majeed Khan was said goodbye after presenting him a traditional Sindhi cap and Ajrak. Addressing the ceremony, Agha Shahid Majeed Khan said the Hyderabad Customs was performing well in collecting the revenue for the government. He also hailed the performance of the Anti-Smuggling Organization (ASO) working under the supervision of Additional Collector Rehmatullah Vistro. Assistant Collector Customs Preventive Mumtaz Ali , Superintendent Nadeem Usmani, Superintendent Abu Muhammad Warsi, Superintendent Muhammad Yaqoob Pasha, PA to Collector Iqbal Mangrio, PA to Shamim Khan, Additional Collector Sharif Khan, Principle Appraiser Inspector Latif Sher, Inspector Hafiz Muhammad Yousuf, CHO Anwar Ahmed, Umar Amer, Anas, Sepoys Umar Mughal, Anis, Tayyab, Mazhar and others were also present.
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MULTAN
IMrAN ALI
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ustoms staff deputed at Multan International Airport has thwarted an attempt of smuggling of cell phones worth Rs1.2 million during their action. Sources told Customs Today that
Customs authorities received credible information from their source that huge quantity of foreign origin cell phones will be smuggled through various Rlights coming from Gulf countries at Multan International Airport. Assistant Collector Muhammad Ikram directed customs staff to remain vigilant at the time of examination of goods to foil any attempt of smuggling and after the instructions
of assistant collector inspection of coming goods were enhanced to avoid any sort of smuggling from Multan International Airport. Customs teams recovered 110 branded smart phones and two laptops from luggage of two passengers which were coming from Dubai. Smart phones and laptops were concealed in their cloths and Customs team took cell phones, laptops in their custody for non pay-
ment of their duty taxes. Passengers were identiRied as Muhammad Yasir Ali and Syed Muhammad Iqbal. Both passengers were resident of Karachi. The Passenger were coming on Rlight FZ-339 Flydubai and they tried to Rled away from Multan International Airport but customs teams arrested both passengers. However Customs teams decided to seize all recovered goods under Customs act 1969.
Dry port earns rs02.8m more cD against assigned target T
ISLAMABAD
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he customs dry port Islamabad collected Rs2.8million more Customs Duty against the assigned target of April of Financial Year (FY-2016-17) whereas the Islamabad dry port was assigned revenue target of Rs331million under the same head for above said period. According to Amanat Khan, As-
sistant Collector Dry Port Islamabad, during April FY 16-17 the dry port collected Rs333.8million Customs Duty against the assigned target of April’s Financial Year 2016-17. During the month of March FY 16-17, the dry port collected Rs302.931million CD while it collected Rs193.958million during the same period of FY15-16. The dry port collected Rs285.837million during February FY16-17 under the head of CD whereas
during same period of corresponding year it collected Rs274.561 million. Assistant Collector said during January 2016-17, the dry port collected Rs326.441million CD whereas it collected Rs268.00million CD during the same period of FY15-16. The dry port collected Rs307.965million CD during December FY16-17 whereas it collected Rs270.00million CD during the same period of FY15-16.
During the month of November 16-17, the dry port collected Rs285.858million CD whereas it collected Rs203.940million during the same period of corresponding year 2015-16. During October 16-17, the dry port collected Rs261.737million CD whereas during the same period of FY15-16, dry port collected Rs197.188million. During September 16-17, the dry port collected Rs289.208million CD while during the same
month of corresponding period, it collected Rs154.234million CD. The dry port collected Rs275.659million during August FY16-17 whereas during the same period of corresponding year 15-16, it collected Rs170.956million under the same head and the dry port collected Rs118.815million during July FY16-17 under the head of CD whereas it collected Rs98.428million under the same head during FY2015-16.
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Customs Preventive impounds NDP Mark-X near Liberty Market LAHORE: Customs Preventive Anti-Smuggling Organization has seized Rs 2 million Toyota Mark X car from Liberty Market parking area. Sources told Customs Today, said that on information the ASO team consisting Deputy Superintendent, Mazhar Bhuttter, Inspector Sajjad Bukhari, Nasir Saeed and other confiscated a non duty paid Mark-X car bearing registration number ED-900 Islamabad Model 2005 color Silver. The car was being driven by one Jamshaid Ahmed who is a resident of Icchra Lahore. The sources said that the car was valued at RS 2000, 000.
Friday May 12, 2017
National
ASo seizes rs 1.5 non duty paid electric appliances near Band road
Dastgir invites Qatari private sector to invest in pakistan
LAHORE
M HAYAt
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ustoms Anti-Smuggling Organization impounded millions of rupees non-duty paid electronic appliances. Sources told Customs Today that the ASO anti-smuggling team on the directions of Deputy Director Moazzam Raza raided Al-Saad Goods Transport Company, near Band Road where smuggled goods were dumped and seized electric irons Panasonic brand 492 pieces, split Inverter AC 1.5 ton Mitsubishi brand five sets, split inverter AC 2.25 tons and seven sets of Panasonic brand iron. The sources said that the total value of the smuggled electronic items was estimated at Rs1,500,000/.
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faisalabad customs earns rs04.6m through auction FAISALABAD
NAEEM SHEIKH
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he Model Customs Collectorate generated Rs04.6million through auction of confiscated miscellaneous goods. The Faisalabad Customs organized public auctions in a recently week. It presented 87 different lots consisting of tyres and tubes, dismantled vehicles, welding rods, auto parts, kids’ suits, solar panels fans, cloths, plastic granules, computers, 14 vehicles and various fax machines in the auctions. All items were seized by the Anti-Smuggling Organization (ASO). During the auctions, only four vehicles and two lots of miscellaneous items were successfully auctioned including Toyota Premio worth Rs01.9million, Toyota Pejaro worth Rs386000, Toyota Fielder Rs01.1million, Toyota Premio car Rs890000 and two other miscellaneous lots No worth Rs394000.
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ISLAMABAD
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inister for Commerce Khurram Dastgir Khan invited Qatari private sector to invest in Pakistan and assist in bringing parity to trade balance, which had shifted heavily towards Qatar after Pakistan’s $16 billion, 15-year agreement to buy LiqueRied Natural Gas. Khurram Dastgir Khan was leading a 26-member group of Pakistani businessmen on a visit to Qatar Chamber in Doha, a press release received here said. He was received by the ViceChairman Muhammad Bin Ahmed Bin Towar Al Kuwari and members of the Board of Qatar Chamber. The minister highlighted major economic advances Pakistan has made in recent years, and particularly made reference to accelerating GDP growth, outstanding gains in Pakistan Stock Exchange, rapidly spreading peace, stabilization of public Rinances, imminent resolution of energy crisis, and the extraordinary mobilization of projects under China Pakistan Economic Corridor. In his interaction with Qatar Chamber, Minister for Commerce identiRied energy infrastructure, rice and food processing, tourism, commercial real estate, and IT sectors in Pakistan as having immense potential for Qatar investment. He asked Qatar Chamber to
urge its government to facilitate visas for Pakistani businessmen. The vice chairman of Qatar chamber welcomed the minister for commerce warmly and commended him for bringing a substantive delegation for business-to-business interaction with Qatari private sector. In their comments, board members of Qatar Chamber indicated lack of marketing by Pakistani manufacturers and producers as one of the biggest impediments in increas-
Board members of Qatar chamber indicated lack of marketing by pakistani manufacturers and producers as one of the biggest impediments in increasing exports
customs recovers huge quantity of smuggle items
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KARACHI
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www.customsbulletin.com irectorate General of Customs Intelligence and Investigation (I&I) has recovered a huge quantity of contraband items as well as non-duty paid luxury vehicles in different actions. According to the details, the ofRicers of the Directorate General of Customs Intelligence and Investigation (I&I) Anti-Smuggling Organization (ASO) have submitted a report of
the busted contraband items and non-duty paid luxury vehicles. The report submitted to the Director Anti-Smuggling Organization (ASO) Tahir Qureshi contains details of raids conducted during the It has been mention in the report that the ASO conducted 11 raids in 20 days in which six luxury vehicles, Toyota Crown car model 2004, Honda Airwave car Model 2006, Toyota Land Cruiser Model 2001, Toyota Mark X car Model 2005, Toyota Surf jeep Model 2002 and Toyota Surf jeep of
Model 1998 were recovered. The report further mentioned that the ofRicers seized 67,000 liters Iranian diesel worth Rs 2,790,617 in two raids. On the other hand, the smuggled contraband items including mobile phones, foreign origin cigarettes, and Gutka have been recovered during three different raids. The sources informed Customs Today that the value of luxury vehicles, cellular phones as well as other contraband items is Rs48,012,527 in the market.
ing exports. Minister for Commerce Khurram Dastgir concluded the meeting by appreciating Qatar Chamber’s hospitality and asking it to Rinalize names for Pak-Qatar Joint Business Council at the earliest so its inaugural meeting could take place. Minister’s interaction at Qatar Chamber was followed by business-to-business meetings between Pakistani companies and Qatari counterparts.
fIA arrests three for defrauding he Federal Investigation Agency (FIA) on Wednesday arrested three accused for defrauding with people. According to FIA spokesman, accused Bashir Ahmad of Mianwali received Rs 140,000 from Muhammad Raza of Chakwal for employment in Kuwait and Muhammad Nadeem of Mandi Bahauddin took Rs 350,000 from Shahid Jamal for employment in Saudi Arabia.
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Astore development projects to complete in time: Minister ASTORE: Gilgit Baltistan Minister for B&R Dr, Iqbal has said that different ongoing developmental projects were in progress in district Astore and other areas including Likly, Parishing, Musk Village, Gorikot and Fina. He said Executive Engineer B&R, younus khan and Executive Engineer Water & power, Fayyaz Alam have been directed to complete all developmental projects by the end of this year.He said all the contractors and executive engineers have also been directed to submit the report of development work on weekly basis. He said no one would be allowed to use substandard material and go beyond the stipulated time.
Friday May 12, 2017
Business
Mous signed with chinese companies: cM PESHAWAR
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hief Minister Khyber Pakhtunkhwa Pervez Khattak said two Memorandum of Understandings (MoUs) have been signed with Chinese public sector companies during his visit to China. He said the projects include energy, housing, industry, information, housing, information technology, mineral, mines, agriculture, highways and urban development have a financial implication of $24 billion. He was talking to various representative delegations at Chief Minister House here on Tuesday.
4 developmental schemes approved LAHORE
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unjab Provincial Development Working Party (PPDWP) approved four development schemes of various sectors with an estimated cost of Rs 4171.669 million. These schemes were approved in the 70th meeting of PDWP of current fiscal year presided over by Punjab P&D Chairman Muhammad Jahanzeb Khan. All Members of the Planning and Development Board, Provincial Secretaries concerned and other senior representatives of relevant Provincial Departments also attended the meeting.
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Provincial Minister Inayatullah, MPA Wajihuzzaman, Fazle Shakoor and Mehmood Jan were
also present on the occasion. Chief Minister said that in addition to these projects govern-
ment had agreements with Frontier Works Organization for four projects costing $10 billion. These projects included Karak Oil Refinery, Haripur Cement Factory, 600 MW of electricity and two housing schemes. The provincial government would get a share up to 10 percent without giving a single penny in the projects, he added. Pervez Khattak made it clear that we would not take loans that would over burden the resource base of the province adding KP was not a feasible province but China Pakistan Economic Corridor made it the most practical.He said that MoU has been signed during his visit to China for the provision of solar kit to 10,000s schools and 400 hospitals.
‘Industry, academia need to cooperate to benefit from natural resources’ S
SUKKAR
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Sindh Minister for Industries, Manzoor Hussain Wassan has said that industry and academia must cooperate to exploit natural resources and government was always available for their support. The Minister expressed these views at a day-long seminar on “Industry-Academia collaboration for advancement of Knowledge and economic development”, organized by the Pakistan ScientiRic and Tech-
nological Information Center (PASTIC) under its University-Industry Partnership (UIP) Program in collaboration with Sukkur Chamber of Commerce and Industry (SCCI) and Sukkur IBA, said a handout here on Monday. He said that Pakistan is naturally gifted country with rich resource and self-reliant agriculture; however we export mostly primary goods and lag far behind in value addition. “If we established local industry, for example, dates then we can generate huge revenue by setting up value-addition plants,” he
added. He also highlighted various initiatives taken by PPP led government in Sindh to revive industry and establish new free economic zones. Manzoor Wassan further said that Pakistan is in severe need of qualified and capable scientists, engineers and research scholars for state of the art research work. Such human resources can help us in innovation and developing ideas that solve everyday problems, the minister said. He said that present government has top priority to improve quality of life of people of Sindh.
rs87,155 million released for NHA under pSDp ISLAMABAD
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he government has released Rs 87,155 million for National Highway Authority (NHA) under the Public Sector Development Programme (PSDP) till date. Official source said that out of 22,000 million allocated for Hakla-D I Khan Motorway, Rs 15,400 million had been released so far. Moreover for land acquisition and affected properties compensation for construction of the project, Rs 1770.640 million had been allocated out of which 1408 million had been released. For widening and improvement of Hoshab-NagBasima-Surab Highway Rs 4,000 million had been allocated and released. For construction of 118 km ThakotHavelian Expressway construction, Rs 600 million had been released while Rs 1771.600 million allocated for land acquisition of the project. Rs 1110 million had been released for construction of Burhan-Havelian Expressway (E-35). For the construction of Sialkot-Lahore Motorway a total of Rs 4,000 million had been allocated and released. For Basima-Khuzdar section of China Pakistan Economic Corridor, Rs 4,400 million had been released. A sum of Rs 27,224 million had been released for Lahore-Abdul Hakeem Section (230 km) of Peshawar- Karachi Motorway (PKM).
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Sugarcane to be cultivated over 1.1642 million hectares LAHORE
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ugarcane crop would be cultivated over 1.1642 million hectares of land across the country during crop sowing season 2017-18 in order to fulRil the domestic requirements of sugar as well as for exporting. Sugarcane production targets have been Rixed at 68.517 million
tons during the period under review for getting an average yield of 58,824 kg per hectare, said an ofRicial in the Ministry of National Food Security and Research. He said that in Punjab Province sugarcane crop would be cultivated over 0.728 million hectares of land to produce about 44.00 million tons of the commodity. In Punjab, average yield per hectare has been Rixed at 60,439.6 kg for getting the maximum output by using the crop efRi-
cient technologies, he added. Meanwhile, the crop would be cultivated over 0.320 million hectares of land to produce 19.0 million tons of sugarcane by producing an average 59,375 kg crop per hectare, he added. In Khyber Pakhtunkhwa and Balochistan provinces, the sugarcane to be cultivated over 115,000 hectares and 0.7 thousand hectares of land respectively. He said that the crop output targets for both the provinces were
Rixed at 5.482 million tons and 3.50 million tons respectively. The average yield per hectare in Khyber Pakhtunkhwa and Balochistan were Rixed at 47,470 kg and 50,000 kg respectively, he added. It may be recalled that during same period last year, the sugarcane crop production targets had Rixed at 67.535 million by cultivating the crop over an area of 1.125 million hectares. According to the data of Pakistan Bureau of Statistics, about 123,443 metric tons of
sugar worth US$ 66.966 million was exported from the country during last 9 months of current Rinancial year as compared the exports of the corresponding period of last year. The sugar export during Rirst three quarters of last Rinancial year was recorded at 293,541 metric tons valuing US$ 132.284 million. During the month of March, 2017 country earned US$ 57.742 million by exporting about 107,558 metric tons of the sugar from the country.
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Friday, May 12, 2017
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BR Chairman Dr Muhammad Irshad has launched the membership drive of FBR Foundation, which was recently formed to provide an ideal platform to the serving and retired FBR employees to resolve their health, education and housing related issues. The membership drive was launched at a ceremony held in the FBR House with Dr Chairman Muhammad Irshad in the chair, while FBR Foundation CEO Saleem Ahmad Ranjha and Members of the FBR Board and senior ofRicers were also present. The FBR chairman Rilled and signed the membership form along with naib qasid in his ofRice, Muhammad Azam, who became the second member of
the Foundation. Speaking on the occasion, the FBR chairman, who is also chairman of Foundation, lauded the quick work being done by the newly-formed Foundation on various fronts and urged the CEO to quickly plan some strategy to address the longstanding issues, particularly healthcare, being faced by the low-cadre retired and serving employees of FBR. He desired the Foundation should reach out to the employees and meet their expectations which have risen sharply after the welcome foundation of the body. He hailed what he called an admirable level of interest, support and encouragement shown by the sen-
ior hierarchy within FBR for the Foundation and hoped the Foundation would measure up to their expectations. Later, FBR Foundation CEO Saleem Ahmad Ranjha briefed the chairman and participants of the meeting about various initiatives taken in recent days by the Foundation to resolve the health-related issues of the serving and retired FMR employees. He said various options and strategies were being explored and studied to launch projects to resolve the education and housing related issues as well. Member Administration Majid Qureshi, Member Operations Rehmatullah Wazir, Member SPR&S Nasir Masroor Ahmad and others also spoke on the occasion and gave various proposals and suggestions for the welfare of FBR employees under the umbrella of FBR Foundation.
hmad eem A l a S o ion cE an and undat chairm e h t fBr fo bout fed ting a a brie e h e j n m a r of the ecent ipants en in r c k i t a r t a s p lve ive nitiat o reso i t s n u o i o i t var he ounda es of t u y the f s b s i s y d a s d ate ployee th-rel l m a e e r h M the tired f and re g n i v ser
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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
Dilemma of new loans
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he government is banking its economic policies on greater financial assistance from the world donor agencies, including the Asian Development Bank to achieve 7 percent growth in the gross domestic product during the next fiscal year.Finance Minister Ishaq Dar is on forefront in knocking one door after the other to get loans, a financial strategy introduced by the Pakistan People’s Party government to run the country’s affairs. The loans are piling up, but growth is lagging behind hardly five percent which is one of the lowest in the region. Under the infrastructural financing package of the bank, the government is currently receiving $2 billion a year and the learned finance minister seeks the donor agency to add another $500 million to it.It is very difficult to understand who told the government policymakers that loans are better than investment. Though some pseudo economist regard foreign investment as another ‘cruse’, but the loans are even the worst option as it leaves the country in the quicksand of debts. No one is able to tell the nation why loans are the only option, the lion share which always goes to undisclosed destinations. No doubt the foreign loans are a necessity in certain situations, but the economy based on loans will be like a house of cards. Why the government agencies fail to understand that they are mortgaging the nation to foreign institutions which have emerged as the new colonialists of the modern era. Providing loans is the business of the international financial institutions and they are ever ready to extend loans. The trouble is that they attach strings with the approval of loans. Loans under tough conditions only add to burden on the already under pressure economy. The ADB has committed $1.2 billion for the National Disaster Risk Management and $200 million has already been received by the country. The officials, on the other note, spend millions of rupees hard earned taxpayers’ money on foreign tours to meet the officials of the donor agencies. The finance minister is looking to hold multilateral meetings with officials of the ADB, Asian Infrastructure Investment Bank and Japan International Cooperation Agency to seek further assistance. No one knows when the financial managers will be able to prove their mettle.
potentials of domestic trade A
LAHORE
Dr AftAB AfZAL
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ccording to newspaper reports, domestic commerce contributes 32 percent to the gross domestic product of the country and creates 20 percent jobs for the labour force.However, lack of awareness, ofRicial lethargy and underdeveloped infrastructure are a few troubles which hinder the promotion of trade activities in various parts of the country.Pakistan is a country of 200 million people, but has a vast area where means of transportation still need improvement and infrastructure still needs development. After the drastic amendments to the constitution, the four
provinces and the federal territories are like countries and interprovinces trade needs to be enhanced instead of relying fully on the international trade. Though trade among the provinces is going on at various levels, but what all is happening are the individual efforts. The cities of Punjab, Lahore, Gujranwala, Sialkot, Gujrat, Multan, Faisalabad and Wazirabad have emerged as the industrial hubs of the province. Businessmen from Karachi, Hyderabad and Sukkur of Sindh province are engaged with traders of these cities, but beneRits of mutual trade are not fully reaped. The government had created Domestic Commerce Wing four years ago to reform and develop trade activities within various parts of the country. The
wing was mandated to develop terms of reference and guidelines to evolve a uniform national policy for domestic commerce.Reports claim the development of domestic commerce would help produce export surplus and many developing countries have concentrated on the development of domestic commerce. But domestic trade needs to be streamlined. The Commerce Ministry was quick in establishingthe domestic trade wing, but had failed to devise a comprehensive policy for the promotion of domestic business and trade. Reports suggest Ease of Doing Business Index 2017 still places Pakistan at 144 out of 190 countries,which is a point to ponder for the policymakers. Economists fear the lack of coordination within
provinces to develop trade links could lead to economic depression in certain areas. The domestic commerce is the ignored sector in the government priorities as all its focus is on the promotion of international trade. The government has also failed to shift or develop the commercial areas in cities like Lahore and Karachi to vast business and trade zones. The big markets in big cities are congested and lack of parking has created severe problems for the buyers. The relevant government agencies have failed to implement building laws and this creates bedlam in commercial areas during peak hours. There is a need to establish new trade hubs away from the busy and congested city roads in every province of the country.
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Greater access to finance will help UK businesses grow LONDON: Since the UK voted to leave the EU, there have been plenty of warnings that the economy will suffer as a result. It is too early to see how challenging Brexit will be in the long run but so far the small and medium-sized businesses that drive much of our economy have shown resilience and, as we demonstrate today, the UK has a real opportunity to build a new, sustainable, productive and job-creating post-Brexit economic model if it backs these dynamic entrepreneurs and businesses. On Wednesday, we at the London Stock Exchange publish – in partnership with The Daily Telegraph – the latest annual edition of our “1,000 Companies to Inspire Britain” report which identifies the most dynamic and fastest-growing companies across the UK. This report gives a platform to companies growing at exceptional rates – 70pc on average – and across a range of sectors.
Karachi chamber terminates membership of 23 illegal occupants KARACHI
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he Honorable Court of VII-Rent Controller Karachi South has ordered three illegal occupants of KCCI premises namely Khawaja Qutubddin, Rizwan and National Bank of Pakistan to hand over the illegally occupied premises to Karachi Chamber within 60 days from the date of order i.e. The case No. 914 against Khawaja Qutubddin of M/s Intertrade Distributors (Pvt.) Ltd., Case No.888 against Mr. Rizwan of M/s. Agrico and Case No.658 against the National Bank of Pakistan were filed by Karachi Chamber for ejectment from KCCI premises which were continuously
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heard on various dates and the final judgment/ order was issued on April 27, 2017 in favor of Karachi Chamber. Many illegal occupants of Karachi Chamber’s premises have been running their offices since many decades and KCCI Management has been trying its level best to get its premises vacated by forming committees from time to time, holding negotiations and issuing relevant letters to illegal occupants but all these efforts proved futile. Therefore, the Karachi Chamber decided to initiate legal action and seek assistance from the honorable court as the illegal occupants never bothered to pay any attention to KCCI’s letters and requests,. The leadership of Businessmen Group, KCCI Office Bearers and Managing Committee members have warmly welcomed the honorable court’s orders directing the illegal occupants to hand over the premises within two months.
Friday May 12, 2017
Chambers
pakistan, Malaysia focus on trade diversification to improve volume A
ISLAMABAD
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13 member trade mission of Malaysia visited Islamabad Chamber of Commerce and Industry along with H.E. Dr. Hasrul Sani Mujtabar, High Commissioner of Malaysia. Tunku Rizal was leading the delegation. The delegation was representing various sectors including hydropower generation, construction, manufacturing, water filtration technology, cosmetics, sea food etc. Speaking at the occasion Dr. Hasrul Sani Mujtabar, High Commissioner of Malaysia said that Pakistan and Malaysia were the Rirst two Islamic countries that had signed FTA long time ago, but the bilateral trade was still conRined to few products. He said there was an urgent need to focus on diversiRication of trade for improving trade Rigure. He said both countries have good relations in education and defense Rields as over 5000 Pakistani students were studying in Malaysia while Malaysia used to send its military ofRicers to Pakistan for training. However, he said it was high time that both coun-
tries should intensify efforts for improving two-way trade that would bring far better results for their economies. He said Pakistan should further streamline its visa policy for Malaysian businessmen so that they could easily visit Pakistan for exploring new business opportunities. Tunku Rizal, Head of Malaysian delegation said that Pakistan and Malaysia have good potential to enhance cooperation in many Rields and both countries should encourage frequent exchange of trade delegations
to explore all untapped areas of potential cooperation. He said Malaysia could help Pakistan in hydropower generation, designing and construction of industrial parks, hotels, tourism and other sectors. He hoped that visit of Malaysian delegation to Pakistan would lead to Rinalization of some business deals between the private sectors of both countries. In his welcome address, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that PakMalaysia FTA signed in 2007 has not
achieved the desired results as yet He said the main reason of low trade volume was that both countries were doing trade in few items. He stressed that both should focus on new products to improve two-way trade. He said many Pakistani products including non-basmati rice, wheat, mangoes, halal food, seafood, meat products, cutlery & sports goods, spices, handicrafts, light engineering goods, hospital & surgical equipment, pharmaceuticals and gems & jewelry could Rind good market in Malaysia.
real estate agents demand reduction in taxes on property business in new budget
Dubai chamber of commerce to boost trade
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ubai Chamber of Commerce and Industry recently unveiled plans to open a new representative office in Buenos Aires, its second office in Latin America. The announcement came during a meeting between H.E. Gabriela Michetti, vice president, Argentina, and a high-level delegation from Dubai on a trade mission to Latin America. This was followed by a visit to São Paulo, where the chamber’s eighth representative office was inaugurated. H.E. Hamad Buamim, president, Dubai Chamber, explained that the new office in Buenos Aires will explore and identify new trade and investment opportunities for businesses in the UAE, while also working to attract more Argentine companies, particularly small and medium enterprises to Dubai. –CB Report
ISLAMABAD
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h Abdul Majeed, General Manager, Multi-Professional Cooperative Housing Society along with a delegation of Islamabad Real Estate Agents Association visited Islamabad Chamber of Commerce and Industry and stressed that transparent utilization of tax money was key to promote tax culture in the country. He said businessmen were fully cognizant of the importance of tax payment, but non-transparent use of tax money was major hurdle in promoting tax culture. The representative of Islamabad Real Estate Agents said that cumulative impact of various taxes including advance withholding tax, capital
value tax, and registration fee was around 15% on real estate sector due to which this business activities in this sector have almost come to a halt. They emphasized that to save the real estate business from complete destruction, government should immediately withdraw heavy taxes on it in the forthcoming budget. Speaking at the occasion, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that real estate sector was playing key role in the economic development of the country as it was creating plenty of jobs, paying signiRicant tax to national exchequer and was supporting more than 40 industries. However, imposition of heavy taxes on real estate has badly damaged this important sector of the economy. He urged that
government should revise heavy taxes on real estate in the coming budget to revive its growth. He said government should also revisit its zero-tax regime for export-oriented industries to facilitate better growth of exports. He said billions of refunds of exporters were stuck up with the government due to which they were facing liquidity problems. He stressed that government should ensure timely clearance of refunds that would help in improving exports. He assured that ICCI would play role for resolving the key issues of real estate sector for its better growth. Khalid Malik, Senior Vice President, Tahir Ayub Vice President ICCI, Zafar Bakhtawari, Muhammad Saeed Khan and others also spoke at the occasion.
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Syed Roman takes charge as Second Secretary (IR Op) ISLAMABAD: Syed Roman Ali Shah, a BS-18 officer of Inland Revenue Service, has taken the charge as Second Secretary (IR Operations). The officer, in pursuance of Board’s Notification No.1250-IR-II/2017 dated 19-042017, relinquished the charge of the post of Deputy Commissioner-IR, RTO, Peshawar, on April 24, 2017 and took the charge of the post of Second Secretary (IR Operations) at FBR (HQ), Islamabad .
Friday May 12, 2017
Islamabad Superintendent Zahid raza removed from service for inefficiency ISLAMABAD
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Deputy collector usman tariq reshuffles staff and duties T
ISLAMABAD
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ahid Raza Bokhari, a superintendent, Model Customs Collectorate, Faisalabad (Presently posted in Directorate of Intelligence & Investigation-FBR, Faisalabad), has been removed from service for inefficiency and misconduct. The disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against the accused officer vide Charge Sheet No.10(19)/2014-Cus-III dated 12.09.2014. Muhammad Farrukh Sharif, the then Additional Collector, Model Customs Collectorate, Sialkot was appointed as Inquiry Officer to conduct inquiry on account of various acts of omission and commission committed by the accused officer constituting “Inefficiency”, “Misconduct” and “Corruption”. 2. Whereas, the Inquiry Officer submitted inquiry report.
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6 Ir officers given additional charge of commissioner ix Inland Revenue Service officers have been assigned additional charge of the post of Commissioner-IR (Automatic Exchange of Information (AEOI) Zone) with immediate effect until further order. Meanwhile, The suspension period of Zulfiqar Ali Shaikh, a Pakistan Customs Service officer of BS-16, has further been extended for three months. The competent authority, in continuation of Board’s Notification No.2721-CIII/2016 dated 09.11.2016, extended suspension period of the officer, posted as Appraising officer at Model Customs Collectorate Port Muhammad Bin Qasim, Karachi, for a further period of three months with effect from February 9, 2017. –CB Report
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he Customs Collectorate Deputy Collector Usman Tariq has assigned new duties and reshufRled eight customs employees, including one deputy superintendent and seven inspectors with immediate effect. Sources told Customs Today, that deputy collector issued a notiRication no: II-A(Admin)/16/2016 and assigned duty of Deputy Superintendent Muhammad Shoaib at Law branch in addition to his existing duties, while three inspectors including Habib Mayo, Anjum Sheraz, Asif Hussain has been transferred from Bond section to Faisalabad International Airport in shift-B and shift-A. According to the notiRications Inspector Safdar Ali has been
transferred from Rebate branch, Audit cell to Anti Smuggling Organization Faisalabad in addition with headquarter law branch. Inspector
Afzal Naeem transfer from import branch to Refund branch Faisalabad. Similarly Inspector Abdul Jabbar transferred to Air Freight Unit (AFU)
baggage and State Warehouse from Rebate branch. Inspector Faizi Raza has posted at ASO Faisalabad from Export and Recovery branch.
ASo impounds 627 vehicles valued rs901.98m T
PESHAWAR
tArIQ DErYA
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he Customs Anti-Smuggling Organization (ASO) Peshawar impounded 627 numbers of offending vehicles during 10 months (July to April) of Financial Year (FY) 2016-17. The worth of the said vehicles is Rs901.98million. The ASO also seized 32.821 kilogram of gold/silver during above said period of Financial Year 2016-17. According to Zakir Muhammad, Deputy Collector ASO Model Customs Collectorate Peshawar, the ASO Peshawar made a huge seizure of smuggled goods during the current Rinancial year 201617 as compared to the same period of the corresponding Rinancial year 2015-16. During 10 months (July to April 16-17), the ASO seized 384 numbers of offending vehicles valued Rs549.45million. Offending vehicles are playing a main role in promoting smuggling activities in the region. He said the ASO Peshawar
always tried to discourage the non-taxe-paid activities and encourage the proper business activities for promotion of legal business. Telling the details of NDP vehicles during above said period, he said the ASO impounded 243 number of NDP vehicles worth
Rs352.530million. Those vehicles were impounded by different stations like Kohat, Nowshera, Peshawar and Hazara which fall under the jurisdiction of the Model Customs Collectorate (MCC) Peshawar. During the Rirst 10 months (July to April 2016-17), the ASO of
MCC Peshawar also conRiscated 32.821 kilogram of gold/silver during different seizures by different Customs stations like Torkham and Bacha Khan International Airport Peshawar. The value of the conRiscated gold/silver is Rs125.4million.
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Customs confiscates 35 smuggled luxury vehicles KARACHI: Customs officials, in a crack down on non-custom paid cars, have confiscated as many as 35 smuggled vehicles in the metropolis. Customs officials impounded the luxury cars with fake number plates and registration papers including Toyota Land Cruiser, Toyota Surf, and sports utility vehicles, said Deputy Collector Ali Raza. “The cars were illegally brought in the city, without paying customs duty,” he added. Previously in an ongoing crackdown against smuggling of donkey hides, the Customs Department seized an additional 300 hides from a warehouse in Mauripur.
custom presents vehicle before nazir of SHc in smuggling case KARACHI
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ustoms authorities have presented a vehicle, used in alleged smuggling of drug, before the nazir of Sindh High Court. Customs officials had seized a Shehzore loader and recovered 20kg charas from the vehicle. The case was then transferred to the Anti-Narcotics Force for prosecuting the accused who were present in the vehicle at the time of seizure but later they were acquitted by the court. The owner of the impounded vehicle, Waheed, moved the instant petition for release of the vehicle and on a previous hearing court ordered Customs Department to bring the vehicle and hand over the same to the nazir of the SHC. Meanwhile, Sindh High Court (SHC) has granted bail to Federation of Pakistan Chambers of Commerce & Industry (FPCCI)
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President Zubair Tufail and six others in an export refund fraud case. The SHC division bench, comprising Justice Junaid Ghaffar and Justice Muhammad Humayoon Khan, admitted to bail of Zubair Tufail, Pervez Tufail, Salam Tufails and four others of InterPlas against a solvent surety of Rs 500,000 each. The bench earlier heard Barrister Farogh Naseem who representing the applicants submitted that National Accountability Bureau (NAB) under the garb of investigations are harassing the applicants. The allegations pertain to alleged export rebate fraud case which is beyond the jurisdiction of NAB, he submitted. A bench of SHC has declared 3 per cent sales tax (value addition) paid by the applicants null and void after which a refund of Rs75 million became due in favour of accused and to save this money, they were being harassed under concocted allegations, the counsel submitted establishing mala fide by the income tax/sales tax authorities.
Karachi
SHc directs tax dept not to take any action against Aline Engineering works T
KARACHI
M B rANA
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he Sindh High Court (SHC) directed the tax department to not take any coercive action against the petitioner in respect of impugned demand notice on a constitutional petition Riled by Asad Ali Awan, proprietor of Aline Engineering Works, against the impugned notice for attachment of its bank accounts for forced recovery. Hearing the petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi, also issued notices to the tax authorities and deputy attorney general directing them to Rile their respective comments on the next date of hearing. Earlier, counsel for the petitioner stated that petitioner is engaged in the business of import & export and manufacturing of engineering parts under the name & style of Aline Engineering Works Karachi and paying all the liabilities properly. According to the petitioner, Additional Commissioner Inland Revenue Audit Range-I issued a show cause notice for recovery of disputed amount. Being aggrieved, he moved the Commissioner Inland
Revenue Appeals and Riled an appeal which is pending. However during the pendency, the said respondent issued notice for attachment of its bank accounts for recovery of disputed amount illegally and without lawful authority. Citing Secretary to Ministry of
Friday May 12, 2017
Commerce, Commissioner Inland Revenue Appeals and Additional Commissioner Inland Revenue Audit Range-I as respondents, counsel pleaded with the court to restrain them from taking any coercive measures till the final disposal of its appeal.
global corporation challenges valuation of baby diapers KARACHI
M B rANA
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he Sindh High Court (SHC) issued notices to the tax authorities and deputy attorney general directing them to file their respective para-wise comments on a constitutional petition filed by Global Corporation challenging enhancement of valuation of baby diapers from $2.05/kg to 2.50/kg. A twomember bench, headed by Justice Munib Akhtar, was hearing the petition. The court adjourned the matter for May, 2017. Earlier, counsel for the petitioner stated that it he is engaged in the business of import of baby diapers from China and has unblemished record. According to the petitioner, Collector of Customs, Model Customs Collectorate Appraisement West, is assessing the imported consignments of low-end baby diapers imported by the petitioner on the basis of the order-inrevision no 224 of 2016 dated 04/06/2016 enhanced from $2.05/kg to 2.50/kg passed by the Director General, Directorate of Valuation, in spite of the fact that customs appellate tribunal has set aside the aid order-inrevision vide judgment dated 14/11/2016.
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customs value of phenolic resin, Melamine resin revised
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KARACHI
wAQAr AHMED ANSArI www.customsbulletin.com
he Directorate General of Customs Valuation has revised the customs value of Phenolic Resin, Polyurethane Resin, Melamine Resin, Alkyd Resin and Epoxide Resin through Valuation Ruling No 1146/2017 under Section 25-A of the Customs Act, 1969. According to details the customs values of Phenolic Resin, Polyurethane Resin, Melamine Resin. Alkyd Resin and Epoxide Resin is selected to determine the Customs values under section 25-A of Custom Act 1969 due to wide
variation of declared and assessed values. Therefore to give level playing Rield to all importers, the Customs value of Phenolic Resin, Polyurethane Resin, Melamine Resin, Alkyd Resin and Epoxide Resin are selected for determination and uniform application across the board to all. Meeting with all the stakeholders including importers and representatives from clearance Collectorates, was held on 29-03-2017 and 12-04-2017, to discuss the current international prices of the subject item. Representations received from commercial importers which are also examined in the light of PRAL data, and international web-
sites. The view point of all participants was heard in detail and considered to arrive at Customs value of Phenolic Resin, Polyurethane Resin. Melamine Resin Alkyd Resin and Epoxide Resin. Meanwhile, The Directorate General of Customs Valuation has revised the customs values of low end brands of iron and steel drawer locks, door-closers, hinges and drawer sliders through Valuation Ruling No 1145/2017 under Section 25-A of the Customs Act, 1969. According to details customs values of the subjected items were determined vide Valuation Ruling No. 573/2013 dated 09-01-2013. An exercise to re-determine the Customs
value of the said goods under Section 25-A of the Customs Act, 1969 was initiated to reRlect their current international price trend. Two meetings were held on 1904-2017 & 02-05-2017 with stakeholders. All the stakeholders were requested to submit invoices of imports during last three months showing factual values. Details were also sought about websites, names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current values could be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question.
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India’s soyameal exports rise in April Friday May 12, 2017
World
BENGALURU: India’s soyameal exports rose to 1.11 lakh tonnes in April on continued strong demand from countries such as Bangladesh and France. Shipments of soyameal and other value-added products during April registered an eight-fold increase of 1.11 lakh tonnes against 12,195 tonnes in the corresponding period last year, according to provisional estimates released by the Soyabean Processors Association of India. Bangladesh, France and Germany were the top three buyers of Indian soyameal during April. Bangladesh bought 29,400 tonnes, while France purchased 25,861 tonnes during April. Germany bought 25,351 tonnes during the period.
Mission coconut milk contains 39000 vintage box
Indonesia sues thailand’s ptt for $2b BANGKOK
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RIYADH
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ustoms witnessed Batha foiled an attempt to smuggle a large amount of alcohol was (39.192) Thirty-nine thousand one hundred and ninety-two box, found hidden within the consignment received for Customs boxes of a “coconut milk”. The detailed Director General of Customs Batha Abdul Rahman we hinted said: presented to the Customs Mission is a “coconut milk” mounted on one of the trucks coming to the Kingdom for transit through its territory to a neighboring country and led by one coming, and when subject to customs procedures found that amount of liquor hidden in a way art within the consignment, so put cartons containing the bottles of coconut milk the highest load, while placed cartoners
South Africa awaits new draft of carbon tax bill fter more than eight years in the making, South Africa’s proposed carbon tax legislation could come into force in January 2018. But with coal making up 70% of the country’s energy mix and uncertainty surrounding its gas and nuclear power programmes, industry figures argue South Africa is not ready. Nevertheless, if the country does not take steps soon, it will miss its COP21 pledge to peak greenhouse gas (GHG) emissions by 2025 and fail to ensure a decline in absolute terms from 2035 onwards. A new draft of the carbon tax bill is expected in mid-2017 following nearly two years of revisions. In the previous draft, released at the end of 2015, GHG emissions were to be taxed at ZAR 120 per ton of carbon dioxide equivalent ($8.9/tCO2e). –CB Report
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liquor down the load, and added we hinted: that cartons and bottles wines were similar to cartons and bottles of coconut, and this is one of the ways Almsenai smuggling pursued by Kathy T smugglers in an at-
tempt to enter contraband into the Kingdom, but all employees of the customs in the different customs ports are making utmost efforts to prevent the entry of such contraband and others.
uK Sipp giant faces £1.8 million tax bill over guernsey biofuel scheme
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K Sipp provider James Hay has been hit with a £1.8m (€2.12m, $2.3m) tax bill from HM Revenue and Customs (HMRC) over the Guernsey-listed biofuel investment scheme Elysian Fuels. In a results update on its website, James Hay’s parent company IFG said it is currently in a legal dispute with the UK tax office regarding the penalty. James Hay confirmed it has 500 clients who have invested around £55m in
Elysian Fuels, a Channel Islands Stock Exchange-listed scheme which put money into projects including a bioethanol plant in the US and a renewable fuels refinery in the UK. It promised investors returns up to 10 times the original investment over eight years. HMRC is investigating the scheme and the tax relief claimed by investors who sold their shareholding to their Sipp, shortly before it collapsed in 2015. –CB Report
ontradictory claims sit at the heart of a bitter row that reignited between the Indonesian government and PTT, Thailand’s state-owned oil company, last week over a 2009 oil spill in the Timor Sea between Australia and Indonesia. Reported to be the worst offshore drilling accident in Australian history, it resulted in an estimated 30,000 barrels of oil leaking for 74 days from a well operated by a PTT subsidiary in the Montara oil Rield. Nearly eight years on, the Indonesian government has Riled suit against PTT and two subsidiaries — PTT Exploration & Production and Australia-based PTTEP Australasia (PTTEP AA), the operator of the oil rig. The demand is for 27.5 trillion rupiah ($2.06 billion) in compensa-
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tion for environmental damage and rehabilitation in the Indonesian regions affected. The civil lawsuit was Riled at the Central Jakarta District Court on May 3. PTTEP was Rined 510,000 Australian dollars ($37,7101.6) by an Australian court in 2011. Indonesia said it decided to seek legal redress against PTT after negotiations proved fruitless. OfRicials say they believe they have sufRicient evidence to win. “At the beginning, we thought there was goodwill from their side, but after several meetings there appeared to be none,” Arif Havas Oegroseno, Indonesia’s deputy coordinating minister for maritime affairs, told reporters on Friday. According to Oegroseno, meetings were held with PTTEP in 2012 and 2013. The possibility of a memorandum of understanding (MOU) was discussed to launch a joint committee to settle the case, but nobody from PTTEP appeared when it was time to sign.
china import, export growth slows
hina’s export growth halved last month in dollar terms as imports slowed markedly more than expected, tracking with recent readings that suggested slower expansion in the country’s manufacturing sector in April. Exports grew 8 per cent year on year in dollar terms in April, slowing from from a 16.4 per cent rise in March, according to China’s General Administration of Customs. That still compares favourably to an annual fall of almost 2 per cent in 2016, but was below a median estimate of 10.4 per cent growth from economists
polled by Reuters. Imports rose 11.9 per cent year on year, slowing from 19.8 per cent growth in March and falling well below expectations of deceleration to an 18 per cent rise. That sluggish rise in inbound shipments follows an independent reading on China’s domestic manufacturing sector for last month that pointed to the slowest expansion since September. Julian Evans-Pritchard, China economist at Capital economics, said export growth could be expected “to hold up well given the relatively bright outlook for the global economy this year.” –CB Report
S. Korea, china to be affected by tHAAD fallout
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SEOUL
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outh Korea and China will both be hurt economically by the fallout caused by the deployment of the advanced U.S. missile defense system on the Korean Peninsula, a local think tank said. According to the Hyundai Research
Institute (HRI), Beijing’s retaliation against Seoul’s decision to station a Terminal High Altitude Area Defense (THAAD) battery here could cost Asia’s fourth-largest economy 8.5 trillion won (US$7.5 billion) in losses in 2017. This translates into the country’s gross domestic product taking a 0.5 percent hit. The Rindings also showed Chinese losses at 1.1 trillion won, and
its impact on the GDP at 0.01 percent. China has stringently opposed the stationing of the THAAD battery, claiming it compromises its national security. South Korea has countered that the defensive system is needed to counter growth missile threats from North Korea. The private think tank said because of its bigger size, negative fallouts for China will be smaller than
for South Korea. Broken down by sector, the largest repercussions are on tourism. Starting on March 15, Chinese travel agencies have halted all tour packages to South Korea, which is already taking a toll on inbound trafRic. “If visitor numbers drop by 40 percent from April through December, this is a loss of 7.1 trillion won for the local tourist industry,” HRI said.
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Norway’s Statoil interested in Algerian offshore, renewables OSLO/ALGIERS: Norway’s Statoil is interested in investments in Algeria’s offshore potential and solar and wind energy projects, Norway’s foreign affairs minister said after meeting with his Algerian counterpart, a ministry statement said. Statoil is already operating in Algeria’s gas sector, but it is the first time the company has expressed public interest in renewable energy projects and offshore projects in Algeria. Algeria, hit by the crash in global oil prices, is working hard to find new energy resources to boost its revenues but also to develop renewable energy to cut domestic demand for gas so it can export more.
fines imposed by Belgian Authority for infrabel public contract he Investigation and Prosecution Service of the Belgian Competition Authority imposed a total fine of 1.8 million euros for a cartel between five companies relating to a public procurement organized by Infrabel. The five companies are ABB, Siemens, AEG, Sécheron and Schneider. The investigation was launched in 2013 following a leniency application lodged by ABB. Following this leniency application, ABB was granted a total exemption from its fine. Other undertakings that also presented a leniency application were granted a reduction of between 30% and 50%. All the undertakings at stake opted for the settlement procedure, which granted a fine reduction of 10%. It should be mentioned that four natural persons also applied for immunity, which they have obtained. Indeed, the Code of Economic Law provides fines for natural persons who take part in a cartel. They can thus also lodge a leniency application to benefit from an exemption from a fine. –CB Report
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San Diego cBp seize over $1m in drugs in just 24 hours
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Sri Lanka-czech republic to deepen bilateral ties oth Sri Lanka and the Czech Republic have expressed interest to further enhance and deepen bilateral ties between the two countries as there is a big potential for further development. Mirror Business learns that both the countries finalized an economic corporation agreement last week in Colombo, with Development Strategies and International Trade Minister Malik Samarawickrama to sign in Prague this October. During the visit to Prague in June, Foreign Affairs Minister Mangala Samaraweera initiated the discussions to conclude the double taxation agreement, for which a round of talks had taken place in Prague this April. Czech Junior Deputy Foreign Minister Foreign Affairs Ivan Jančárek, who was in Sri Lanka. –CB Report
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WASHINGTON
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an Diego CBP officers seized over $1 million worth of narcotics in just 24 hours last week. From 11 a.m. on Thursday to 11 a.m ofRicers seized a total of 368 pounds of drugs 341 pounds of methamphetamine and 27 pounds of marijuana. The seizures occurred at the Tecate and Otay Mesa ports of en-
try. “A significant seizure occurred on Thursday at the Tecate port of entry at about 3:40 p.m., when CBP officers encountered a 24-year-old female Mexican citizen driving a 2009 Dodge Caliber and referred her the vehicle for an in-depth investigation,” CBP writes in a press release. “CBP officers removed 63 packages of methamphetamine weighing 142 pounds with an estimated street value of $482,000. “The second incident occurred at the Otay Mesa port of entry at about 5 p.m., when a 43-year-old male Mexican citizen driver and
his two minor children in a 2016 Mazda 3, were referred for a more in-depth inspection. A canine team screened the vehicle and the dog alerted to one of the children’s seats. CBP officers removed seven packages of methamphetamine concealed in the bottom of the child’s seat. The drugs weighed eight pounds and was valued at $27,000.” U.S. Customs and Border Protection (CBP) continues to make large drug busts, holding up its commitments to enforcing border security laws and keeping illicit drugs off the streets.
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Swiss tax ‘Spy’ arrested in germany uthorities in Germany have arrested a man accused of spying on German tax agencies concerning their efforts to acquire and use stolen Swiss bank data. It is alleged that the Swiss national, who was arrested in Frankfurt on April 28, had worked for the Swiss intelligence agency and was using his position in the German tax authorities to gather information on the investigators working on cases using data illegally obtained from Swiss banks. The trade in confidential financial data between anonymous whistleblowers in Switzerland and the German tax authorities is a source of tension between the two countries. In June 2016, the Swiss Federal Council adopted a dispatch said that Switzerland will continue to reject administrative assistance requests based on stolen data actively acquired by the requesting state outside of the normal administrative assistance channels. Nevertheless, for the German states involved, the prices paid for purchasing stolen information can be repaid many times over. For example, in 2013, Lower Saxony’s Socialist Finance Minister Peter-Jurgen Schneider revealed that five data discs purchased for a sum of EUR600,000 (USD654,000) had yielded approximately EUR148m in unpaid taxes, interest, and fines. According to Deutsche Welle, the state of Nord-Rhine Westphalia has paid EUR17.9m to acquire information on potential tax evaders since 2010, collecting in excess of EUR7bn in unpaid taxes and penalties as a result. –CB Report
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customs merger made cyber compliance a problem
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CANBERRA
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he highly complex IT environment that spawned from the merger of the federal Immigration and Customs agencies is to blame for the combined agency failing a cyber security compliance audit, Immigration has said. The agency also argued the ATO and Human Services – the other two big agencies to be audited by the national audit ofRice earlier this year
had a head start over Immigration in their cyber security transformation efforts. The Australian National Audit OfRice (ANAO) audit found that Human Services was the only one of the three agencies to be “cyber resilient” and compliant with all four of the ASD’s top cyber mitigation strategies. Immigration and the ATO had failed to properly implement application whitelisting; patch operating systems and applications; and were not effectively managing their IT supplier contacts, the ANAO found. All three are cur-
rently subject to a follow-up inquiry by parliament’s joint committee of public accounts, intended to keep the heat on the agencies to improve compliance. In a submission to that inquiry, Immigration said it agreed with the Rindings of the report and would implement the recommendations, but laid out its case as to why it had failed to meet the cyber security obligations. Its July 2015 merger with Customs left it with a highly complex IT environment as a result of the two agencies having made opposite decisions on basi-
cally every technology procurement choice. Former Customs CIO Randall Brugeaud told last year’s Gartner Symposium/ITxpo conference that the combined environment prior to integration had more than 500 business and supporting systems, over 850 systems interfaces and services, around 750 databases, 20,000 desktops, 3500 mobile devices, thousands of servers and multiple data centres. The combined agency also had something from just about every major technology player on its books.
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Man arrested for human smuggling, 15 passports recovered Friday May 12, 2017
Lahore
LAHORE: Federal Investigation Agency (FIA) arrested a man involved in illegal business of human smuggling and recovered 15 Pakistani passports, five medical certificates, visa copies and relevant record from his possession. According to FIA spokesman here on Tuesday, the team conducted a raid at Al-Shehanshah Travel Agency Rex City Faisalabad and arrested owner Muhammad Shakeel who could not produce any licence or legal document regarding this business. Further investigation is underway.
customs tribunal modifies impugned order of M/s Amjed Ali case LAHORE
SAJID NAwAZ
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he Customs Appellate Tribunal modiRied the impugned order and disposed of an appeal Riled by M/s Amjed Ali against Deputy Collector of Customs Investigation & Prosecution and Collector of Customs (Adjudication) Lahore. Zulfiqar A Kazmi, Member Technical Bench-I, said in the remarks that the case of air conditioner is also found lawfully possessed by the appellant and allowed to release unconditionally. As per brief facts of case, Customs Staff of ASO Lahore raided the godown located on Temple Road, Abid Market. After completing all the legal formalities and serving search warrant, the godown was
customs court hears 19 important cases he Special Court of Customs Taxation and Anti-Smuggling heard 19 important cases and adjourned most of the cases until next hearing. About 19 cases of different types, including pre-arrest bail pleas filed by accused persons, were scheduled for the day. The court adjourned the bail pleas of Azhar Mehmood and Shahbaz until next hearing. The cases, including tax evasion, customs, smuggling and narcotics, were scheduled for the day. A case of Tariq Kazmi, allegedly involved in mobile smuggling, was also scheduled for the hearing. A case of crime framing against an accused Lateef was also scheduled for Tuesday which is scheduled for next week. The cases of Lahore, Gujranwala, Sialkot and Jhelum were scheduled for the day. –CB Report
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searched which led to the recovery of various foreign electronic goods including air-conditioner. After a show cause notice, the adjudication authority heard the case and passed the order-in-original that owner of goods failed to produce legal documents and passed the order against the appellant. Being aggrieved from the order, he Riled the case in the customs appellate tribunal on the grounds that the impugned order is passed in blatant violation of section 24-a of general clause act. He further argued that the entire record and proof of payment was provided by the appellant and it was wrongly mentioned in the impugned order that buyer and seller have failed to produce any proof of payment. The respondent department denied all the allegations. After hearing the arguments from both sides, the customs appellate tribunal disposed the case.
customs Intelligence confiscates non duty paid generators
LAHORE
M HAYAt
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ustoms Intelligence and Investigation authorities seized million of rupees non duty paid diesel generator of 650
customs ASo impounds non-duty paid car from Liberty Market
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ollectorate of Customs Preventive Anti-Smuggling Organization team has successfully impounded a non duty paid Honda Civic car which was illegally imported. Sources told Customs Today that ASO authorities received credible information that some non duty paid vehicles plying on roads. After receiving the information ASO tams enhanced their patrolling in Lahore. During patrolling the ASO team intercepted a Honda Civic car model 2003 white colour bearing registration
no.GA-15-800 from the possession of one Tariq Mehmood Sindhu from parking of Liberty Market Lahore. It is necessary to mention here that when ASO team asked the owner of the vehicle to produce any legal documents regarding possession of the vehicle he failed to show any relevant documents. After his failure the ASO team impounded the vehicle. ASO team which was comprising Deputy Superintendent Agha Qadeer Gulzar Bhatti and Inspector Tariq Baig and Mughal-e-Azam take part in the operation. –CB Report
KVA along with truck. Sources told Customs Today that during routine patrolling Customs Intelligence team a truck bearing registration no. LOT: 9742 loaded with one non duty paid Diesel Generator of 650 KVA. The team asked the owner of the vehicle who was identiRied as Muhammad Sharif to show legal documents regarding im-
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port of the generator, but the owner failed to show any documents. The Customs Intelligence team seized the generator. The market value of the seized generator is Rs3,500,000/- The Customs Intelligence and Investigation team Deputy Superintendent Gulzar Bhatti, Deputy Superintendent Mazhar Abbas Butter and Inspectors Mughal-e-Azam and Tariq Baig, Gulzar Bhatti, MA Iqbal also take part in the operation. During another action Customs team also detained one non duty paid diesel generator of 750 KVA along with truck No.C-8303 from the possession of one Muhammad Qayyum ul Haq from Babu Sabu Interchange, Lahore value Rs. 4,000,000/ million. It is necessary to mention here that Customs Intelligence and Investigation Director Chaudhary ZulRiqar Ali Chaudhary directed all relevant ofRicials to adopt zero tolerance policy towards owners of non duty paid vehicles.
court adjourns hearing of smuggling
he Special Federal Court of Customs Taxation and AntiSmuggling has adjourned the case of an accused arrested from Sialkot International Airport. An accused, travelling from South Africa to Sialkot, was checked by the customs ofRicials at the Sialkot airport. The customs team found 30 costly mobile phones hidden in the baggage of Muhammad Sarwar. The customs team arrested the accused and presented him before the customs court for physical remand but customs judge denied the request of customs investigation team for physical remand and sent him to jail
for judicial trial. Muhammad Sarwar also Riled a petition for his post arrest bail which has also been adjourned because of unavailability of prosecutor of the court. –CB Report
prA issues final notice to Expo center Johar town
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LAHORE
M IMrAN MEHAr
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he Punjab Revenue Authority (PRA) has sent a Rinal notice to Expo Center on non-provision of record. According to details available to Customs Today, the Punjab Revenue Authority has issued a notice to Expo Center to submit
their record regarding their bookings and revenue generations. It has been notiRied as well that if the record will not be provided within a week to PRA then the Expo Center could be sealed. Earlier, the Punjab Revenue Authority has also issued many notices to Expo Center to submit record to PRA but expo center was failed to submit any record. Now
the Punjab Revenue Authority has issued final notice and a warning of sealing of building. The Punjab Revenue Authority (PRA) has also prepared a list to broaden its network in Lahore and Faisalabad. PRA has also shortlisted number of more restaurants to bring them in network in coming days in which some restaurants have added in PRAs network.
Sources told that the PRA has checked almost dozens of restaurants in posh areas of the city in Lahore which are providing expensive food to citizens and they are earning millions 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 past two years.
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Two ships take berth at Port Qasim KARACHI: Two ships M.T Quetta and M.T Epic Samos carrying 63,972 tonnes furnace oil and 3,400 tonnes LPG were allotted berths at FOTCO Terminal and Engro Vopak Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority. Meanwhile two more Containers ships Tempanos and Uni Floroda also arrived at outer anchorage of Port Qasim morning. Berth occupancy was observed at the port at fifty three percent on Thursday where a total of eight ships, Maersk Salina, MSC Algeciras, Da De, Oriental Rise, Iris-II, Epic Samos, Umm Bab and Quetta were occupied PQA berth to load/offload Containers, General Cargo, Coal, Soya Bean Seeds, LPG, LNG and Furnace oil respectively.
port projects in pH included in chinese firm’s overseas plans ill the Chinese government’s planned revival of the historic Silk Road trade route open the door of opportunity for the immediate solution to the perennial problem of port congestion and traffic in the Philippines. Spurred by the Belt and Road Initiative, China’s ambitious plan to build and upgrade highways, railways, ports, and other infrastructure, Shenzhen Yantian Port Group, a major player in the container port services industry, is now busy looking for investment opportunities in Southeast Asia, Middle East and Europe. While he admitted that it is not proper to talk about particular projects that are still being negotiated, YPG chief engineer Mingjun Xiao nevertheless revealed during talks with visiting Filipino journalists
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that his company is currently working out the possibility of constructing ports and providing much needed logistics not only in Malaysia, Egypt, and Italy but also in the Philippines. “We have one project in your country but I’m not at liberty to mention the name since we have a competitor from your country,” said Mingjun apparently referring to the International Container Terminal Services, Inc. which directly manages, operates, and develops container terminals in the Philippines. According to the YPG official, his colleagues have all expressed excitement about the possibility of investing in the Philippines. “Under China’s Belt and Road Initiative, if our government thinks there are opportunities, we would like to take part,” he pointed out. –CB Report
Ports & Shipping
philippine port billionaire sees trump as biggest risk to trade COLUMBUS
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S President Donald Trump’s unpredictability and nationalist policies have become the biggest risk to global trade, Philippine billionaire and port operator Enrique Razon said. “There are dark clouds gathering,” Razon, chairman and president of International Container Terminal Services Inc., said in an interview on Monday with Bloomberg Television’s Haslinda Amin in Los Angeles. “The U.S. has created the largest part of the uncertainty in an already uncertain future,” he said, referring to the U.S. leader’s protectionist moves including a proposed borderadjustment tax and his earlier threats to pull out of the World Trade Organization and North American Free Trade Agreement. House Speaker Paul Ryan has been pushing to replace corporate income tax with a tax on businesses’
domestic sales and imports, exempting exports. The border-adjustment tax proposal raised alarm bells among importers in the U.S., as well as government ofRicials in Mexico as they feared it would reduce shipments north of the border. Trump in April signed an executive order that threatens to review and “renegotiate or terminate” America’s trade agreements including its participation in the WTO if they are found to harm U.S. interests. Last week, he also threatened to withdraw from
Nafta, but later said, after speaking with the leaders of Canada and Mexico, he would seek to renegotiate. While Trump has backtracked on some positions “he keeps changing what he is saying,” Razon, 57, said. “I don’t even know if his people know exactly what he’s really gonna do.” Still, Razon said his company is willing to invest $500 million to $1 billion to build a terminal in every country in western and eastern Africa, a continent he considers the most immune to any globalization shifts.
Friday May 12 2017
Dwindling cargo volume grounds ports’ operations argo handling operations at the nation’s ports are at a low ebb, as cargo throughputs have fallen below the Guaranteed Minimum Tonnage (GMT). The benchmark was captured in the agreement entered by the Federal Government and the concessionaires 10 years ago. Cargo throughput refers to the total volume of cargo (inward and outward) handled at the ports nationwide. The low cargo volume is an indication of an ailing economy where manufacturing and businesses struggle to survive. The multi-billion naira cranes and equipment, which dot the various ports, are now mostly idle, indicative of the uncertainty over investments and returns likewise. Consequently, terminal operators across the six major seaports in the country have decried the negative impact, as almost 80 per cent of the clearing agents have closed shop with the attendant job loss conservatively put at 30,000. Nigerian Ports Authority (NPA) operational statistics reveal a downward throughput of vessels in the last six years (excluding crude oil) from 76.7 million tonnes in 2010 to 83.4 million tonnes in 2011, and further down to 77 million tonnes in 2012. –CB Report
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port of Astoria to appeal DEQ penalty T
WASHINGTON
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he Port of Astoria has appealed its most recent fines from the state Department of Environmental Quality for lackluster stormwater monitoring and treatment. The Port was fined $46,750 last month for failing to meet stormwater monitoring requirements on the central waterfront and at North Tongue Point in the 2015-16 monitoring year. The agency was fined another $22,569 for not finishing stormwater treatment systems at the central waterfront and North Tongue Point as required by the state by July. Jim Knight, the Port’s executive director, had previously announced he would appeal the fines. The Port has requested a hearing with the Department of Environmental Quality. Knight has been criticized
by Port Commissioners Bill Hunsinger and Stephen Fulton, along with Port Commission candidates Dick Hellberg and Pat O’Grady, for not revealing the stormwater fines before a story appeared in The Daily Astorian. In August 2014, the Department of Environmental Quality notified the Port that by July, it would need to make operational stormwater treatment systems on the central waterfront and North Tongue Point to lessen the amount of copper entering the Columbia River and harming salmon and other aquatic life. The Port planned a series of settling ponds and a vegetated bioswale to treat stormwater being pumped in from throughout much of the central waterfront. Conway Construction Co. from RidgeRield, Washington, was chosen as the general contractor on the system. Construction started over the summer
and was largely completed in November, about four months after schedule. But heavy rains and cold weather prevented seeding from taking hold and washed out berms holding in stormwater and compacted soil, preventing the Port from making the system operational. Jeff Bachman, an environmental law specialist with the DEQ’s OfRice of Compliance and Enforcement, conRirmed that the Port is not being Rined for delays after November. Knight estimated two more months to make the stormwater system on Pier 3 operational, depending on weather. In its appeal, the Port did not elaborate on the arguments the agency will use to contest the Rines. Knight said the Port’s arguments will be laid out in a hearing with the department. “My sense is that DEQ really wants to work with us,” he said, adding the Port has improved relations with the agency. “They’re
not trying to inappropriately punish us.” The Port was Rined $36,916 last year for failing to conduct required stormwater monitoring at the Port’s central waterfront and North Tongue Point facilities during the 2014-15 monitoring year, and for failing to Rile required reports in a timely manner. Meanwhile, The 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 OfRice 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.
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Faisalabad ASO impounds non duty paid Toyota Corolla FAISALABAD: The Customs Anti-Smuggling Organization (ASO) has impounded foreign origin used Toyota Corolla Altis car worth Rs10,00,000 involving customs duty and taxes to the tune of Rs7,50,000. Sources told Customs Today, that Collector Muhammad Sadiq received information about the smuggling of the said car. During checking of vehicles, the ASO team intercepted a Toyota Corolla Altis car bearing registration no: NF-746 model 2004 near Samundri Road Faisalabad.
Friday, May 12, 2017
CUSTOMS BULLETIN
rehmatullah wazir asks taxpayers to resolve issues thru ADr system ISLAMABAD cuStoMS BuLLEtIN rEport www.customsbulletin.com
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ederal Board of Revenue (FBR) Member OperationInland Revenue Rehmatullah Khan Wazir has asked the taxpayers to resolve their issues through Alternate Dispute Resolution (ADR) system. The FBR Member, through the letters sent to All Pakistan Tax Bar Association, all chambers and associations, KTBA and LTBA, said that as per the decision of the tax reform implementation committee (TRIC), new panels of ADRC for 15 major cities of Pakistan had been notiRied through SRO 209(I)/2017 on March 28, 2017. The list of panels contains names of prominent persons such as retired judges (not below the level of district and session judge), chartered and cost accountants, advocates, tax practitioners, representatives of trade bodies/associations of reputable taxpayers. Wazir said that ADR mechanism is the simple system whereby, the taxpayers can refer contentious issues for consideration and recommendations of the independent experts on the subject for making out of court settlement with the tax collectors in
the light of such recommendations. The Member urged the business representatives and other tax practi-
tioners to publicize the measure of FBR in their circle of inRluence as to enable the maximum number of tax-
payers to avail the beneRit of ADR mechanism. He said through this system taxpayers could not only save
themselves from the unnecessary litigation but also help FBR to get legitimate revenue in a friendly measure.
fBr asked to decrease corporate tax rate KARACHI
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he Federal Board of Revenue (FBR) has been urged to decrease the corporate tax rate for the sector as international oil prices have fallen massively. Oil and Gas Exploration and Production sector, in its budget proposals for 2017-18, has recommended that higher corporate tax
rate on the sector should be reduced and aligned to the rate of other corporate sector. The applicable tax rate for the Oil and Gas Exploration and Production sector is 40 percent. Before the promulgation of Income Tax Ordinance, 2001, the tax rate was 50 percent to 55 percent, however, the royalty payment to the government was adjusted against the tax liability, resulting in effective tax rate of approximately 35 percent or less. Applicability of effective 40 percent tax rate has in fact increased the tax expense of the Oil and Gas
Exploration and Production Companies, as against the incentives given to other sectors of the economy, whereby the tax rate will be gradually reduced to 30 percent. To incentivize oil and gas exploration in the country especially after the massive reduction in the international oil prices, the corporate tax rate on E&P sector should be reduced from the current 40 percent to the rate applicable to other corporate sector by making necessary amendments in the ordinance and Regulation of Mines and OilRield and Mineral Development (Government Control) Act,
1948. Foreign investment will be encouraged in the country, which will eventually increase the tax collection of the Government and will also greatly help to overcome the energy crises in the country. The rate of tax applicable on E&P companies on their Oil & Gas proRits are given in their respective PCAs signed with Government. Under Rule 4AA of Part I of the Fifth Schedule to the Income Tax Ordinance, Super tax has been imposed at 3 percent for E&P companies earning Rs 500million (equivalent to US$ 5 million). It is critical for E&P sector and recommended that the tax applicable
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should be calculated strictly in accordance with the provisions of the respective PCAs signed between Government and each E&P company & are legally binding, without changes throughout the full Lease period. This will remove the negative investment scenario, and potential for litigation – due to the varying interpretations by the FBR from time to time (despite the signed PCAs with Government) Tax credits under section 65A and 65B are not currently being allowed to E&P companies by the tax authorities despite the fact that appellate Tribunal decided the matter in favour of E&P companies.