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Karachi, Fri May 19, 2017
MULTAN
IMRAN ALI
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ustoms Collectorate has enhanced the monitoring of suspected routes which are used for smuggling of foreign origin vehicles and goods in the region. These views were expressed by Collector Saud Imran during his exclusive interview with Customs Today. He said that the Multan Customs Anti-Smuggling Organization (ASO) is
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making all out efforts to curtail smuggling in the region. He said that anti-smuggling vehicle cell has enhanced patrolling and monitoring in its jurisdiction to curb smuggling of non-customs paid vehicles in Punjab. Collector Saud Imran said that Multan Customs has witnessed that vehicle smuggling was being done through Dera Ghazi Khan routes from Baluchistan province. The Customs Collectorate has blocked the main smuggling routes which supplies non-customs paid vehicles in Punjab by intercepting smuggled vehicles from these routes. Saud Imran Ahmed said that Multan Customs has adopted effective anti-smuggling strategy to carry out actions against them by deputing staff to detain smuggled goods and vehicles. This new strategy has produced fruitful results after its implementation in the jurisdiction against smuggling.
DG Valuation revises customs value of methanol vide VR No. 1157/2017
Well-being of general public top priority in the upcoming budget: Dar
Govt committed to ensure enabling business environment: Haroon
Customs Preventive collects Rs 2,838 million duty, taxes
Customs Preventive recovers 6,5000 liter smuggled Iranian high speed diesel
The DG of CustomsValuation has revised the customs values of methanol through | See pAge 02 |
Darsaidthatinlinewiththetraditionofthe last three years, the govt was according top | See pAge 03 |
Haroon said the government was committed to provide an enabling | See pAge 04 |
Collectorate of Customs Preventive has collected Rs 2,838 million | See pAge 14 |
Customs Preventive team has caught a boat carrying thousands of liters smuggled | See pAge 16 |
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SHC summons Customs officials in vehicle impounding cases Friday, May 19, 2017
National
KARACHI: A Sindh High Court bench has issued notices to Custom officials of Directorate of Intelligence and Investigations and Anti-Smuggling Organisation for May 17 in two identical petitions pertaining to five non-custom paid vehicles. The notices issued by the bench comprising of Justice Munib Akhtar and Justice Arshad Hussain Khan. The Customs DIT and ASO (Preventive) officials had impounded the non-customs paid luxury vehicles, including Prado, Surf etc. Dil Khurram Shaheen advocate appeared for the petitioners seeking release of the vehicles.
Dg Valuation revises customs value of methanol vide VR No. 1157/2017
fBR set to launch 1st phase of digital directory for withholding tax ISLAMABAD
KARACHI
wAQAR AhMeD ANSARI
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he Federal Board of Revenue (FBR) is all set to launch the first phase of digital directory for withholding agents with an aim to make tax collection system more efficient and help tax collectors to take real time decisions. “Introduction Digital Directory for Withholding Agents is a Management Information System (MIS) built to monitor real-time tax collection received under various sections of withholding tax,” official sources said. The MIS system has capability to analyze current withholding data with historical withholding collections, they said adding that the Chairman Federal Board of Revenue (FBR), Dr. Muhammad Irshad and Member Inland Revenue Operations and their team were given demonstrations over the working of the system. The Chairman FBR appreciated the real-time availability of Withholding data and stated that this Digital Directory will enable the tax collectors to take real-time decisions which will subsequently improve the tax collection, they added. The directory would be launched all across the country, which would enable FBR to broaden the withholding tax regime by enforcing the withholding agents to compliance with the tax laws.
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he Directorate General of Customs Valuation has revised the customs values of methanol through Valuation Ruling No 1157/2017 under Section 25A of the Customs Act, 1969. The item methanol is selected to determine the customs values under Section 25A of the Customs Act 1969 due to wide variation in declared and assessed values. The Customs values are determined for uniform application across the board. A meeting with the stakeholders, including importers and Pakistan Chemicals and Dyes Merchants Association (PCDMA) and representatives from clearance Collectorates, was held on 06.04.2017 to discuss the current international prices of the subject chemical. The stakeholders contended that the prices of methanol Sluctuate regularly in the international market and that Sluctuation can be monitored through prices quoted in ICIS Scan internationally. They requested that as the prices of Methanol are available in ICIS Scan, therefore same may be linked with the ICIS scan prices for fair treatment to the trade in accordance with international market prices, as is being done in case of plastic raw material on plastic Scan prices, iron and steel products on London Metal
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Bulletin prices and so many other items on the prices quoted in reputed international bulletins. Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the particular valuation issue at hand. The transaction value method as provided in Sub-Section (1) of Sec-
tion 25, found inapplicable in light of the wide variety of invoices submitted at import stage the veracity of which could not be ascertained fully, hence requisite information required under law was not available to arrive at the correct transaction value. Meanwhile, The Directorate General of Customs Valuation has revised the customs values of
chemicals iso-prosvl alcohol, npropanol, cvclohexanone, ethoxylated nonyl phenol, iso-butanol, nbutanol and phenol by issuing Valuation Ruling No 1156/2017 under Section 25A of the Customs Act, 1969. The custom values of the subject chemicals were determined vide Valuation Ruling No 920/2016 dated 29.8.2016.
ASo seizes non duty paid tyres, cardamom, coca cola tins A
FAISALABAD
NAeeM SheIkh
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nti Smuggling Organization (ASO) has seized foreign origin tubeless tyres, small cardamom, travel bags, beverage brand Coca Cola worth Rs 364101 involved customs duty and taxes Rs364101 during raid in Faisalabad. According to details, Additional Collector Usman Tariq received information that some non duty paid
items are being smuggled into Faisalabad. He immediately constituted a team consisting Superintendent Dilawar Hussain, Inspector Tanveer ul Haq, Khalid Ashraf Noor, Mehmood Ahmed Dogar and Muhammad Hayat, Muhammad Naeem, Muhammad Yasin, Muhammad Anwar. The above mentioned ASO team intercepted a vehicle near Sahianwala Interchange loaded with smuggled tubeless tyres (26), Ratalla brand made in China, small cardamom (200 kgs), travel bags of
parachute (280 kgs), beverage brand Coca Cola (1440 tins). The team recovered foreign origin items that were being transported from Rawalpindi to Faisalabad. The ASO team asked the owner who was identiSied as Muhammad Yousaf son of Noor Muhammad to produce documents regarding the possession and transportation of these smuggled items. But he failed to provide any relevant documents. After his failure the ASO team seized the smuggled goods under
section 168 of the Customs Act 1969 for violation of section 2(S), 16 and 18 of the Customs Act 1969. ASO authorities after registering a case of smuggling against owner started further investigations. Meanwhile, The Anti Smuggling Organization (ASO) has conSiscated foreign origin three units of illegally imported diesel engine without gear box and carrier vehicles worth Rs, 10,50,000 involving customs duty and taxes Rs, 155776. Sources told Customs Today that Collector
Muhammad Sadiq received credible information about some smuggling attempts. He immediately constituted team. The ASO team intercepted Suzuki pick-up bearing registration number RIS-1388 near Motorway Salam Interchange Sargodha Road, Faisalabad. The ofSicials recovered three units of the cylinder diesel engine from the vehicle and asked the driver Muhammad Zubair ud din son of Faiz ud din to show the documents regarding the legal import of the items.
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NAB hands over recovered amount of Rs4.2m to Fesco LAHORE: National Accountability Bureau (NAB) Lahore Director General Shahzad Saleem has handed over a cheque worth Rs 4.2 million, the amount recovered from Fesco defaulters, to Fesco Chief Executive Officer Mujahid Islam. According to NAB spokesman, Fesco had contacted NAB Lahore in 2016 regarding its commercial, industrial and residential defaulters and reported that the defaulters are not wilfully paying their power bills. NAB Lahore initiated an inquiry against all the defaulters and managed to start recovery of defaulted money through Voluntary Return (VR) and plea bargain (PB) in the same year.
Rto-II collects Rs23335m in first 10 days of May
Friday May 19, 2017
National
well-being of general public top priority in the upcoming budget: Dar
KARACHI
wAQAR AhMeD ANSARI www.customsbulletin.com
he regional tax office (RTO-II) collected Rs23335 million in first 10 days of May. According to Customs Today’s sources at RTO-II, out of the said amount, the RTO-II collected income tax Rs21424 million in the above said period. Sources said that RTO-II collected Rs1593 million sales tax, Rs318 million federal excise duty. Whereas, the RTO-II collected Rs47236 million revenue in April 2017. Meanwhile, Customs Appraisement (west) unearthed a case of tax evasion and found that M/s Ayyan Enterprises used wrong declaration of goods to get clearance of auto parts. This caused a loss of Rs1 million to the national exchequer.
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faisalabad ASo seizes foreign origin auto parts FAISALABAD
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he Anti Smuggling Organization has seized 9-pieces of foreign origin auto parts in Faisalabad city. The market value of the seized auto parts is Rs414225 involving customs duty and taxes Rs105731. Sources told Customs Today, that Deputy Collector Muhammad Usman received information regarding the smuggling of foreign origin auto parts. Soon after receiving the information he constituted a raiding team comprising Superintendent Dilawar Hussain, Inspector Tanveerul Haq, Khalid Ashraf Noor, Ali Zahid and Muhammad Hayat, Muhammad Ashraf, Muhammad Yasin sepoy. The ASO team conducted raid near Jhang Road and seized different HTV hub 8 hub 8 stud without tube CWP and HTV hub CWP and hub.
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ISLAMABAD
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inance Minister, Senator Mohammad Ishaq Dar said that in line with the tradition of the last three years, the government was according top priority to the well-being of the general public in the upcoming budget. Chairing separate meetings with senior ofSicials of Finance Division and Federal Board of Revenue (FBR) on the upcoming budget, the minister said that the budget measures would be focused on employment generation and achieving higher, sustainable and inclusive economic growth. The Minister urged for close coordination and thorough preparations by all departments and ministries involved in budget-related events including the presentation of the budget in the Parliament and launching of the Economic Survey. He said the budget was being prepared after extensive consultations with all stakeholders including the business community, traders and chambers of commerce and industries, who all have provided valuable and constructive suggestions. He encouraged all concerned ofSicials to continue putting in their best efforts to Sinalize all the arrangements in a timely manner. During the meeting with Finance Division ofSicials, Secretary Finance informed the Minister that budget preparations were progressing smoothly according to the prescribed timelines. He
also apprised him about proposals for consideration in the budget for FY 2017-18. In separate meeting with FBR ofSicials, Chairman of the board also gave a presentation to the Finance Minister on tax measures envisaged in the next budget, including measures for improvement in the system of tax collection, broadening the tax base, and facilitation to tax-payers. Meanwhile, Pakistan signed a Memorandum of Understanding with Alibaba Group Holdings Limited to pro-
chairman also gave a presentation to the finance Minister on tax measures envisaged in the next budget, including measures for improvement in the system of tax collection, broadening the tax base, and facilitation to tax-payers
‘Rs46767m tax collected in 10 months’
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KARACHI
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www.customsbulletin.com indh Minister for Excise, Taxation and Narcotics Control Mukesh Kumar Chawla has said that Excise and taxation department has collected Rs 46767.966 million in terms of various taxes in last 10 months from July 2016 to April 2017, while during last Siscal year Rs 39457.588 million were collected in the same period. This he said while presiding over
a departmental meeting here in his ofSice Thursday, said a statement. Secretary ET & NC Abdul Haleem Shaikh and Director General Shoaib Ahmed Siddiqui also attended the meeting. DG Shoaib Ahmed Siddiqui, while brieSing the meeting, told that Rs. 4989.450 millions were collected in Motor Vehicle Tax, Rs. 33286.612 millions in Infrastructure Cess, Rs. 149 millions in Cotton Fee, Rs.1686.315 millions in Property Tax and Rs. 291 millions in Professional Tax and the remaining
amount was collected in various other heads. Mukesh Kumar expressed his satisfaction over recovery of the taxes and said that it was a matter of pleasure that the department had achieved its target earlier. He stressed upon the ofSicers concerned to achieve the tax targets before the current Siscal year ended. ‘Timely collection of the taxes plays a vital role in the progress of the province and we are supposed to come up to the people expectations’, he concluded.
mote country’s worldwide exports by Small and Medium Enterprises through e-commerce. The agreement between Alibaba and Trade Development Authority of Pakistan was signed by Commerce Minister Khurram Dastgir and Michael Evans, President of Alibaba Group, and Douglas Feagin, Senior Vice President of Global Business of Ant Financial, on behalf of Alibaba, during the visit of Prime Minister Muhammad Nawaz Sharif to the headquarters of the company.
fIA arrests man in illegal currency business Federal Investigation Agency (FIA) team Wednesday raided in Lala Musa and arrested a person for illegal business of currency exchange/Hundi-hawala. According to an FIA spokesman, the team recovered Rs 917,000, along with a list of hawala copies of CNICs. The team arrested the accused, Muhammad Yousaf, a resident of Nazimpura, Lala Musa.
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Punjab Excise making online token tax system Friday May 19, 2017
Business
LAHORE: Punjab Excise and Taxation Department is upgrading its token tax system, through which the car owners would be able to submit their token taxes online from anywhere in Punjab. The system has been designed to prevent losses and fake tax submissions via Post offices. Previously fake slips of post offices were submitted and the system lacked any verification methods. Thus token taxes were fraudulently filed by showing previous fake token slips. The Excise Department due to lack of verification processes was facing huge losses.
‘govt to ensure enabling business environment’ ISLAMABAD
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pecial Assistant to the Prime Minister on Revenue Haroon Akhttar Khan said the government was committed to provide an enabling environment to business community. Now the situation had totally changed since 2013 when the present government came into power, as it did achieve the goal of peace, and better law and order in the country, besides political and economic stability, he said addressing a pre-budget seminar “Budget for Export Growth” here as chief guest. The seminar was organized by
clean cotton picking can help losses MULTAN
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irector General Agriculture (Research) Dr Abid has said that the country was facing loss of Rs 10 billion annually because of impurities in cotton. He said women would be given training for clean picking of cotton in near future. He said agriculture sector is mainstay of country’s economy. Its share in exports is nearly 70 per cent and added that cotton exporters faces loss of two to three cents / pound at international market. This loss is due to presence of impurities in our cotton.
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the Ministry of Commerce. Haroon Akhtar said the government had successfully conducted operations against terrorists and other antistate elements and restored peace in Karachi, Balochistan and other regions of the country.
“We have achieved microeconomic stability and now priority of the government is to fully facilitate exporters for enhancing the country’s exports,” he remarked. He said international financial institutions and rating agencies, In-
ternational Monetary Fund (IMF) and Bloomberg had acknowledged Pakistan’s economic growth. Haroon said the fiscal deficit had already declined to 4.4 % from 8.8 % % and it would further reduce to 4.1 % during the next fiscal year. The Special Assistant said by 2018, 10,000 MW more electricity would be added to the national grid system and the total power generation would 25,000 MW by 2025, which would help meet the requirements of the industrial sector. He said the government had brought down the electricity tariff and also reduced load-shedding. Haroon said some $ 57 billion would come as foreign investment in the country during next six years in different sectors.
‘ogRA approval awaited for 22kg weight cNg cylinders’ import’ A
ISLAMABAD
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ll Pakistan Compressed Natural Gas Association (APCNGA) is awaiting for the approval of Oil and Gas Regulatory Authority (OGRA) to start import of new lightweight 22kg CNG cylinders and compatible kits. “The association will hopefully get the OGRA’s nod soon as the authority is in process of completing its board quorum, besides we are looking for the duty reduction in the upcoming
budget for the year 2017-18,” APCNGA Chairman Ghiyas Abdullah Paracha. Before the year 2010, he said, there was zero duty on import of the cylinders and kits as CNG was considered a green-fuel, but afterward 15 percent duty was imposed to discourage the gas use in vehicles due to the commodity’s scarcity. APCNGA, he said, has forwarded the proposals to the government seeking incentives in the CNG sector and review in the import duty. Answering a question, the chairman said the lightweight cylinders would have the same eight kilograms CNG Silling capacity as of the
old 60 kg CNG cylinders, adding that the new technology would be easy in handling and useful in fuel consumption, which would give better mileage. “It will be cost-effective as compared to the increased prices of vehicles. The new cylinder and kit will be available at the price of Rs 70,000 and 75,000 in Pakistani markets after three months of the OGRA’s approval,” he said in reply to another question. Paracha said the association was in negotiations with different foreign companies, including those from Italy and Argentine for importing the new technology and launching it in Pakistani markets.
95% land record computerized in Sindh: wB KARACHI
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total of 95 per cent land record computerization has been completed in Sindh, while more than one lac people have verified land record from inand outside Pakistan. A team of World Bank for Trade and Competiveness Manager for South Asia, led by Senior Economist Miss. Esperonza Lesogabster was informed who called on Chief Secretary Sindh Rizwan Memon, on Tuesday, said a statement. The Chief Secretary informed the delegation that concrete steps were being taken in Sindh for promotion and development of investment and industrialization. Chairman Planning and Development Board Muhammad Waseem informed that under CPEC a special economic zone was being established at Dhabeji, while one window operation would be available to facilitate investors. Member (R&S) Board of Revenue Sindh Zulfiqar Ali Shah briefed the World Bank Team about land record computerization, digital scanning and microfilming. Director General Sindh Building Control Authority Syed Agha Maqsood Abbas briefed about various aspects of the construction projects.
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upcoming budget to focus on achieving 6% gDp growth ISLAMABAD
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inance Minister, Senator Mohammad Ishaq Dar said the development drive and the federal budget for the coming Siscal year would focus on generating 6% gross domestic product growth (GDP). In an interview with Japanese the Nikkei Asian Review, the minister said Pakistan was determined to
funnel more money toward infrastructure, small businesses and the poor, and the government has found an array of international partners to make it happen. “After (achieving) macroeconomic stability, we have fully focused on higher GDP growth that brings a better life to people, better per capita income, job opportunities and Sills the gap in infrastructure demand,” he said while talking about the forthcoming federal
budget, to be announced on May 26. He said that during the next Siscal year, the government efforts would give growth another boost as it intends to introduce some Siscal measures and policies. Dar pointed to a recent agreement with the US-based International Finance Corporation (IFC) to partner on creating a Pakistan Infrastructure Bank (PIB). The PIB will provide Sinancing for infrastructure projects by the private sector, he explained, describ-
ing the new lender as an “equal partnership by the Pakistan government and IFC for 20% each.” Other stakeholders from around the world will account for the rest, he said, adding the bank is expected to have paid-up capital of $1 billion. He said the PIB was just one piece of the puzzle. “With partnerships with the U.K.’s Department for International Development and the German government-owned development
bank KfW, we have created the Pakistan Microfinance Investment Company,” Dar said. This entity’s three-year business plan calls for boosting the number of “beneficiaries of microfinance from the current 4 million to 10 million,” he added. Meanwhile, the government, the DFID and KfW were teaming up on a Pakistan Poverty Alleviation Fund, with their respective shares to come to 49%, 34% and 17%.
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Friday, May 19, 2017
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PESHAWAR IRfAN BAhADuR www.customsbulletin.com
he Collector Customs Collectorate Qurban Ali Khan visited Landi kotal and Khyber Agency to get a know about the on going issues faced by traders to enhance trade to collect more revenue for Pakistan Customs. The Collector Customs said that Asian Development Bank funded Central Asian Economic Corporation Corridor border crossing points will soon be established upon which a sum of Rs 22 billion be spent to facilitate traders. The collector was consist of delegation including Fazale Samad Addiitional Collector , Ali Asad Khan Deputy Collector, Suleman Yaqub Deputy Collector, Fazli Shakoor Deputy Collector and Muhammad Amin Deputy Director Transit Trade. During his visit Qurban Ali Khan also attended a meeting with traders and business men along customs clearing agents to know about the problems faced by the community regarding the situation at borders and its effects on the trade activity. The delegation informed the Collector about the issues faced by them in order to get relief. The
delegation demanded that their should be a strict policy to determine the security at borders for safe trade activities. The collector assured the delegation that their demands will be raised in order to meet relief. He stressed upon the need to construct close coordination with the Frontier Corps, Political authorities as well as with the Afghan Customs authorities. He said that good relationship in fast have resulted in extending border closure timing for Two hours easing the problem of unhindered flow of commercial vehicles’ entry to Pakistan and reducing the soaring transportation charges. He termed the need to promote regional trade and strengthen national economy, the Collector said that traders and Customs Agents must rise to the occasion and adapt themselves to the changing trade environment in t h e
region. Referring to the border security mechanism, he informed that the measures especially passport and visa restrictions were aimed at bringing Torkham- one of the important crossing pointsas par with other international borders to facilitate traders, regulate trans boundary movement of cargo and people. He said though there were some teething problems due to border management yet the mechanism would beneSit both national security and economic interests in the long run. Also highlighted the importance of Torkham border for regional connectivity through CPEC which usher a new era of trade and business activities in the region. Qurban Ali Khan emphasized the need to promote bilateral and regional trade and curb the menace of smuggling by adopting “carrot and stick” policy. Much needed efforts has been carried out to reopen all Land Customs Stations in Kurram Agency, North and South Waziristan and showed satisfaction over the increase in volume of imports and exports during April 2017.
ed a attend o s l a s han usines n Ali k and b s r e Qurba d g h tra learin ng wit toms c s u c meeti h lems it e prob longw h a t t n e u o m ow ab arding s to kn ity reg n u m agent m its the co s and r y e b d d r e o fac at b ity uation e activ d a r the sit t e s on th effect
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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
List of riskiest countries for business
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ccording to a study carried out by FM Global, Pakistan is in the group of countries which are unfavorable for doing any kind of business due to terrorism, political instability and natural disasters. FM Global, a mutual insurance company based in Johnston, Rhode Island with its offices all over the world, is specialized in loss prevention services primarily to large corporations in the Highly Protected Risk property insurance market sector. Some other members of the group are Nepal, Ethiopia, Chad, Haiti and Venezuela. Regardless to the shabby credentials of the organizations, the repercussions of such studies and reports could hinder the flow of foreign investments into the countries in question. The current head of the FM Global is an Indian and its report cannot be relied upon keeping in view the tense relations between the Pakistan and India. There could be Indian government behind the reports to include the name of Pakistan in the list of the risky countries. In the current situation, Pakistan is attracting a huge investment packages not only from China but also from several other countries of the world. The report points out the reach of Indian hands to spoil business environment in the country as it places Pakistan on the third place in the group of countries with worst business reputation. The property insurance group allegedly bases its findings on the data it gets from the World Economic Forum, World Bank and the International Monetary Fund.However, in the list of favourbale countries, it appreciates business environment in Luxembourg, Sweden, Austria, Germany and Belgium.The study gives third, fourth and fifth position to Sweden, Austria, Germany and Belgium, respectively, but ranks the UK at 16th, lagging behind countries such as Qatar, the Netherlands, Finland, Denmark and Norway. Because of their vast geographical area, the study divides China and the US into small regions and varying levels of their exposures to natural calamities. In the direct ranking, Pakistan is placed at 125th, and the Caribbean Island of Haiti, which faced the worst Hurricane last year, has been ranked at 130.The list apparently missed the presence of the riskiest country in the world, India, which claims to be the champion of economy in the region. There is no dearth of Pakistani scholars and think-tanks to research economic conditions of various countries and issue their own rankings based on facts and figures.
Revised growth target A
LAHORE
DR AftAB AfZAL
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ccording to newspaper reports, the federal cabinet has set the growth rate target of six percent to the gross domestic product for the next Siscal year and has approved the increase in development budget despite falling exports and declining remittances sent by expatriate Pakistanis. When exports are falling and imports are increasing, the government incurs billions of rupees trade deSicit and is unable to arrest the situation. Despite the worst economic performance during the Pakistan People’s Party government, the country’s exports had crossed the
$25 billion mark. However, the overall economy has improved during the current government, but exports could not be increased to the desired level. The six percent target set by the cabinet falls short of the anticipated target of nearly seven percent which was earlier perceived by the government. However, it is higher than the current year’s growth. One of the main reasons behind lowering the target than anticipated is said to be energy crisis. The government, despite tall claims from the day one it took the rein of the ofSice, could not improve power supply. As the summer season is set in, the demand for domestic consumers has also risen and short of electricity is foiling all attempts to
achieve the desirable growth target. The government is now planning to increase customs duties to curb imports without realizing that it will open Sloodgates of corruption and illegal trade.The customs department is already Sighting on many fronts and has allocated a big chunk of its staff to curb smuggling. The higher rates of duties and taxes will increase illegal trade to disproportional levels and will adversely affect the business of genuine importers. Experts believe increase in the slab rates will reverse the tariff reforms that the government had introduced under three-year extending facility programme of the International Monetary Fund. As a matter of fact, the Customs Department should not be used as
revenue generator as this idea would create hurdles in the way of business growth in the country. The original size of the next federal budget is expected to be around Rs4.8 trillion, nearly 7 percent more than the current year’s the budget. In a country like Pakistan, this outlay is peanuts as the government will hardly be able to earmark Rs 1 trillion for the development programmes. The government, most of the time, works on speculations without real money in hands. It has to take loans to run the affairs at the end. A drop in the earning of foreign exchange through exports will create budget deSicit of 3.9 percent of the GDP or nearly Rs1.4 trillion, adding insult to injury to the economic situation.
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Iran palm oil market to top $600m by 2025 TEHRAN: Iran’s palm oil market is expected to reach $648.4 million by 2025, according to a new report by US-based market research and consulting company Grand View Research, Inc. Its increasing usage in cosmetics and biodiesel industries has contributed to a significant portion of market revenue in recent years. The termination of western sanctions followed by the agreement regarding nuclear issues has had a beneficial impact on Iran’s economy, attracting higher foreign investments in the country. Malaysia is negotiating a reduction of tariffs under a free trade agreement, which is expected to boost trade relations with Iran once again. The removal of import quota has had an immense impact on the Iranian industry as well, further stimulating growth in recent years, PR Newswire reported.
govt should focus on 4th part of cpec plan: RccI RAWALPINDI
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he government of Pakistan should negotiate with the Chinese government to evolve a policy to have joint ventures between Pakistan and China for long lasting win-win cooperation. “The Labour-intensive industry from China under China Pakistan Economic Corridor (CPEC) shall be relocated in Pakistan to boost the local employment”. Rawalpindi Chamber of Commerce and Industries (RCCI) President Raja Amer Iqbal made these remarks while addressing as guest speaker of a two-day international conference on “China-Pakistan Economic Corridor (CPEC) Corridor of
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Prosperity Through Education and Business” organised by the Peace and Conflict Study Department at the National University of Modern Languages (NUML). The RCCI president said, “We recognise CPEC as a game changer and we urge the government to focus on the 4th part of CPEC plan, which is Industrial Zones Development.” He further said that the CPEC is the flagship project of multi-billion dollar One belt one road (OBOR) and the success of this key mega project will bring the economic revolution in the country and the region. However, the agreements must be followed by the land of law and benefit of Pakistani trader, investors, and industrialists must be kept on priority. The joint ventures between Chinese and Pakistani companies will increase the ownership of the key stakeholders, he added. He demanded that 85% local labour must be used in the CPEC projects and urge government to bring skilled labor as par Chinese.
Friday May 19, 2017
Chambers
Switzerland seeks strong trade ties with pakistan: envoy A
SIALKOT
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mbassador of Switzerland to Pakistan Marc P. George has stressed the need of promotion of strong trade relations between Pakistan and Switzerland. He said that the Switzerland was keen to establish strong Business-toBusiness contacts between Pakistan and Switzerland as well. He stated this while addressing an important meeting of Sialkot exporters held at Sialkot Chamber of Commerce and Industry (SCCI) here. Acting SCCI President Adnan Arshad Sethi presided over the meeting. Swiss Ambassador assured the Sialkot exporters about their easy access of the international trade markets of the Switzerland. He also assured his full cooperation in exploring the mutual business opportunities between Pakistan and Switzerland. He added that the Switzerland intending to develop the strong mutual trade relations with Pakistan. He said that Switzerland would also look in to ensure the direct imports of Sialkot-Pakistan made products direct from
Sialkot instead of purchasing the Sialkot made products on high prices from the other countries. Swiss Ambassador also announced to establish strong relations between Sialkot Chamber of Commerce and Industry (SCCI) and Swiss Chambers of Commerce and Industry as well. Acting SCCI President Adnan
Arshad Sethi said that Switzerland and Pakistan have enjoyed most cordial relations. He highly hailed the role of Switzerland in rural development, enhancing local governance and the protection of human rights in Pakistan. SCCI Acting President added that it was encouraging to note that both countries have stepped up
LccI welcomes LDA’s move to reduce commercial fee
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LAHORE
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he Lahore Chamber of Commerce & Industry (LCCI) on Thursday welcomed the Lahore Development Authority (LDA) move to decrease 10 per cent in commercial fees from existing 20 per cent for establishment of new educational institutions and hospitals. In a statement issued here, LCCI President Abdul Basit said according to new amendment in Land Use Rules, 2014 by the Lahore Development Authority (LDA), schools and hospitals would pay 10 per cent of commercial fee rather than 20 per cent. He said the initiative would go a long way as it will bring down the establishment cost of educational
institutions and hospitals and enable them to provide low-cost educational and facilities to the masses. He said now educational institutions and hospitals were duty bound to transfer beneSit of reduction in commercial fees to the masses. He said corporate offices should also be given same facility that would make the business environment better and help trust building between the government and the private sector. Meanwhile, Punjab Livestock & Dairy Development Board (PLDDB) and Women Chamber of Commerce and Industry (WCCI) Bahawalpur Division here Wednesday signed a Memorandum of Understanding (MoU) to empower female farmers in livestock and related Sields.Both organizations mutually agreed to
work together for capacity building of rural female livestock farmers on the development of integrated livestock value chain. PLDDB will conduct training sessions on good livestock practices, cultivation of fodder varieties and to provide subsidized feeding resourcefor registered female livestock farmers. The PLDDB will provide small animals, animal vaccination and fodder seed to registered needy female livestock farmers.Board will also explore joint venture opportunities for women chamber of commerce with the local and international donors on various projects. On the other hand, WBCCIB will provide basic infrastructure to PLDDB for establishment of its sub office in the chamber.
efforts to increase bilateral trade and investment and countless measures have been taken to ensure that this step is successful. “We understand that both countries have agreed to setup a mechanism to ensure implementation of existing agreements, aimed at substantial increase of twoway trade”, he narrated.
oIccI’s BcI-2017 reflects positive score usiness Confidence Index (BCI) survey released by the Overseas Investors Chamber of Commerce and Industry (OICCI) here has showed an overall positive Business Confidence Score (BCS) of 13%. Under this BCI survey Financial services (58%), Chemical/Cement (27%), Nonmetallic (23%) and Real Estate (21%) were registered to be most booming sectors. The Services sector in general gained in confidence by 4%. OICCI President Khalid Mansoor commenting on the BCI results business community to take advantage of the current improved economic parameters. He said government’s focus on improving the energy and security situation and the positive fall out expected from the ongoing CPEC project demand that relevant stakeholders play their role in strengthening all business and trade sectors.
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Import of tomato from India stabilizes price in city Friday May 19, 2017
Islamabad Saeed takes charge as Dy collector at karachi Appraisement ISLAMABAD
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LAHORE: The local vegetable market of Lahore has been facing shortage of tomatoes for the last one month which has increased the rate from Rs40 kg to Rs100. According to Customs Today, Pakistan has imported huge quantity of tomatoes from India through Land Freight Unit of Wagha. Just in two days, 10 to 15 trucks of fresh Indian tomatoes have arrived in Pakistan. After the arrival of the tomatoes, so-called shortage of tomatoes has come to an end in the city and the price of the said item has also stabilized.
Six Supervisors promoted as office Superintendents S
ISLAMABAD
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uhammad Saeed Watto, a Pakistan Customs Service officer of BS-18, has taken the charge as Deputy Collector at Model Customs Collectorate of Appraisement (West), Karachi. Muhammad Saeed, pursuing the Board’s Notification No. 1003-CII/2017 dated 27.03.2017, relinquished the charge of the post of Deputy Director, Directorate of Intelligence & Investigation-FBR, Lahore with effect from April 7, 2017 and assumed the charge of the post of Deputy Collector, Model Customs Collectorate of Appraisement (West), Karachi on 17.04.2017. Meanwhile, Federal Board of Revenue has transferred/posted 71 Inland Revenue Service officers of BS-16, currently posted at different Regional Tax Officers across the country, with immediate effect until further orders.
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port Qasim Dy collector tahir relinquishes charge ahir Abbas, a Pakistan Customs Service officer of BS-18, has relinquished the charge of the post of Port Qasim Deputy Collector to join his new assignment as Commercial Secretary in Nigeria. The officer, in pursuance of Ministry of Commerce letter No. 2(4)/2016-Admn-II dated 27.09.2016, relinquished the charge of the post of Deputy Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi on May 4 to join his new assignment as Commercial Secretary, Embassy of Pakistan, Lagos, Nigeria. Meanwhile, Six 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. –CB Report
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ix Supervisors have been promoted as OfSice Superintendents (BS-16) on regular basis with immediate effect. The promoted ofSicers include Arshad Hameed, Raees Ahmad and Mushtaq Ahmad Noori (presently posted as Corporate Regional Tax OfSice, Lahore), Muhammad Akram, Muhammad Shah and Arshad Azeem (presently posted at Regional Tax OfSice, Sargodha). According to the notiSication, the promotion will take effect from the date of their joining, subject to the condition that no disciplinary proceedings are pending against them. If these ofSicers are drawing performance allowance/FBR-Sixed allowance, they will continue to draw
the same on their promotion, it said. The ofSicers will be on probation period of one year extendable for fur-
ther period, not exceeding one year, provided that if no order is issued by the day following termination of pro-
bationary period, the promotion will be deemed to be held until further orders, the notiSication added.
kohat customs gets Rs16.85m through auction T KOHAT
tARIQ DeRYA
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he Kohat Auction Cell earned Rs16.85million during April of Financial Year 2016-17 by auctioning impounded vehicles and goods. According to Model Customs Collectorate Kohat that during month of April FY16-17, the auction cell received Rs13.21million miscellaneous duty taxes and surcharges whereas it collected Rs2.08million Sales Tax applied to impounded vehicles and goods during auction. The Kohat Auction Cell got Rs1.13million Additional Income Tax whereas the Kohat did Rs0.42million Federal Excise Duty. During the month of March FY16-17, the Kohat Auction Cell collected Rs1.19million miscellaneous duty taxes and surcharges while the Kohat Auction Cell did Rs0.14million Customs Duty on impounded goods and vehicles during above said period. The Kohat Auction Cell received Rs0.06million Additional Income Tax.
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Azizuddin Ahmad assumes charge as commissioner-IR KARACHI: Azizuddin Ahmad, an Inland Revenue Service of BS-19 has assumed charge as commissioner-IR (OPS) (IP/TFD), Regional Tax Office-II, Karachi. As per the details, in pursuance of Board’s Notification No. 1342-IR-I/2017, dated 28.04.2017, Mr. Azizuddin Ahmad, BS-19 officer of Inland Revenue Service has assumed the charge of the post of commissioner-IR (OPS) (IP/TFD), Regional Tax Office-II, Karachi w.e.f 04.05.2017.
court sends suspected donkey hides smugglers to jail on judicial remand KARACHI
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ustoms Taxation and Anti-Smuggling Court Judge Syed Faiz Rasool Rashdi has sent seven accused to Central Jail Karachi on judicial remand who were arrested for attempting to smuggle donkey hides to China. The hides, worth Rs 118.4 million, were brought to Karachi from Lahore. During the hearing, investigation officer produced a Chinese citizen TuZhong Xiao son of Tu Shao, Syed Ehtisham Zaidi son of Syed Shamim Ahmed Zaidi, Muhammad Faisal Bhutto son of Muhammad Ibrahim, Muhammad Jumman son of Ameer Ali, Zeeshan Jan son of Patrus, Daniyal Rahman son of Muhammad Shakeel, Afshan wife of Ehtisham before the
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court and informed that local police recovered as many as 4,736 donkey hides which were packed in 592 sacks. The operation took place at a shop located in Gulistan-e-Jauhar, Block-12 and handed over them to customs department for FIR and further investigation. He added that it was revealed that the hides were brought illegally from Lahore to smuggle the same to China. “There were about eight hides in one sack and one hide is sold for approximately Rs 25, 000,” he told the court. He mentioned that China is using donkey hides to produce medicine named Ejiao, which is useful in bloodrelated disease. The Ejiao is obtained from donkey’s Gilatin and owing to this reasons, China has become major importer of donkey hides. “A large numbers of donkey hides are being export to China and often illegal methods are adopted to make more profits.
Karachi
Shc directs parties to file comments on petition filed by M/s continental Sweets T
KARACHI
M B RANA
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he Sindh High Court (SHC) has directed parties to submit para wise comments on a constitutional petition Siled by M/s Continental Sweets, Bakers, Nimco. A two-member bench, headed by Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan heard the petition. During the hearing, counsel for the petitioner requested for adjournment, therefore, the court adjourned the matter. Earlier, counsel for the petitioner stated that officials of the commissioner Inland Revenue, Zone-III raided the office of the company at Gulistan-e-Johar on December 22, 2016 and illegally seized all the documents, including a digital video recorder, boxes of records, documents files, computers, electronic weighting scales etc. The petitioner alleged that the officials failed to explain the reasons of the extreme measure. Citing Chairman Federal Board of Revenue, Chief Collector Inland Revenue, Regional Tax OfSice-III, the commissioner Inland Revenue, Zone-III and deputy commissioner
Inland Revenue-III and others as respondents, the petitioner pleaded the court to declare the act of the respondents as illegal, mala Side and arbitrary and restrain them from taking any coercive action against it. Meanwhile, The Sindh High Court (SHC) issued notices to the tax department and deputy attorney general on a constitutional petition Siled by M/s Shazak Multinational and M/s PIVA International against the Sixation of customs value on toilet soap under the valuation ruling no 863/2016. Hearing the petition, a two-member bench, headed by Justice Munib Akhtar, also
directed them to Sile their respective para-wise comments on the next date of hearing. During the hearing, counsel for petitioners stated that petitioners are engaged in the business of lawful import of toilet soap from various countries and are fulSilling all the liabilities properly. According to the petitioners, they are aggrieved and seriously prejudiced by the illegal and mala Side action of ofSicials of the valuation department whereby the department has arbitrarily Sixed the customs value of toilet soap under the valuation ruling no 863/2016 dated 02/06/2016 without lawful authorities.
fBR organises seminar on cRS for AeoI
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KARACHI
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ederal Board of Revenue (FBR) conducted a seminar on Common Reporting Standard for Automatic Exchange of Information (AEoI). The seminar was conducted by the ofSicials of OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes in auditorium of Old Customs, Karachi. The OECD team comprised of Donal Godfrey, Deputy Head of Global Forum Secretariat and Lloyd Garrichinho, Analyst in the Global Forum. The event was arranged for facilitation and education of the Si-
nancial industry so that maximum representatives of the industry can beneSit from the expertise of the OECD team members. Pakistan has signed and ratiSied the Multilateral Convention on Mutual Administrative Assistance in Tax Matters in 2016 and has also taken up a Pilot Project on Automatic Exchange of Information with the approval of Finance Minister with the assistance of the Global Forum and United Kingdom. As Pakistan intends to start its Sirst exchange of information soon, therefore, the Sinancial sector is required to start its due diligence process from July 1, 2017. Federal Board of Revenue has already noti-
Friday May 19, 2017
Sied Common Reporting Standard (CRS) Rules for the purpose. Mohammad Iqbal, Chief (International Taxes), Irfan Ali, Executive Director SBP and Khalida Habib from SECP were also on the panel for the seminar. The Chief Commissioners of RTOs and LTUs, Director General of Customs Training Academy, Collectors of Customs and other senior FBR officers also attended the seminar. Other participants included officers from SBP, SECP, and representatives of financial sector from banking and nonbanking sector in a large number. The event commenced with opening remarks by Mohammad Iqbal, Chief (International Taxes)
property transactions major source of whitening black money KARACHI
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roperty transactions have become major source of money whitening as bulk of concealed income documented under tax amnesty granted by the government about five months ago. The government granted a permanent amnesty through Section 111 (4c) of Income Tax Ordinance, 2001 by paying 3 percent of tax under Section 236 W of the Ordinance on the purchase of an immovable property. The amnesty is available on the difference of property valuation notified by the Federal Board of Revenue (FBR) and District Collector values of a provincial government. The amnesty scheme incorporated in the Ordinance on December 02, 2016. Since the launch of the amnesty an amount around Rs55 billion has been whitened in about 40,000 transactions. The pace of illicit money declaration is getting momentum as every month the declaration of amount is rising. During April 2017 around Rs20 billion was declared by purchaser of immovable properties. The declared amount was only Rs2 billion in the first month of December 2016.
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and Irfan Ali, Executive Director of SBP. The participants were communicated the messages of Haroon Akhtar Khan, Special Assistant to the Prime Minister on Revenue and Dr Muhammad Irshad, FBR Chairman, apprising them of the steps taken by FBR so far and expressing strong commitment of FBR to the automatic exchange of information. The purpose of the seminar was to guide and address to the queries of the stakeholders about implementation of CRS Rules and automatic exchange of information. Donal Godfrey and Llyod Garrochinho made detailed presentations on CRS Rules.
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Norwegian salmon exports values strong in Q1 2017 Friday May 19, 2017
World
OSLO: Norway exported 233,000 tonnes of salmon for NOK 16.1 billion in the first quarter. The volume increase of the salmon exports was 3 percent, but the revenues rose even more. The revenues increased by 21 percent, or NOK 2.8 billion compared to the first quarter of 2016. Norway exported 91,000 tons of salmon with a total value of NOK 6 billion in March. This is a volume increase of 14 per cent and an increase in revenues of NOK 1.2 billion compared to the same month one year ago. The revenue increase is therefore a staggering 24 per cent. Continued growth in demand for Norwegian salmon has contributed to yet another record breaking first quarter for Norwegian salmon, says Paul T.
customs withdraws notice of proposed modification
uk labour plans tax on companies LONDON
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LONDON
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he US Customs and Border Protection Agency withdrew its notice of proposed modiSication and revocation of a series of letter rulings relating to its position on the application of the coastwise laws to the movement of certain types of merchandise and equipment between coastwise points. Under the coastwise laws, “merchandise” must be carried aboard U.S. Slagged Jones Act qualiSied vessels, while “equipment” may be carried aboard foreign Slagged vessels. The rulings subject to the revocation proceeding were related to the deSinitions used for these terms. Historically, Customs had taken the position that vessel “equipment” constituted items “necessary and appropriate for the navigation, operation or maintenance of a vessel
Sri Lankan rupee edges up in dull trade he Sri Lankan rupee ended slightly firmer in dull trade on due to mild dollar selling by exporters. Rupee forwards were active, with the spot-next ending at 152.55/65 per dollar, compared with Tuesday’s close of 152.65/75. Two-week forwards closed at 153.00/20 per dollar, compared with Tuesday’s close of 153.10/20. Sri Lankan financial markets were closed on Wednesday and Thursday for a Buddhist religious holiday. The spot rupee, which resumed trading on May 5 after four months, was not active on Friday, with the central bank’s reference rate at 152.10. “There were exporter (dollar) sales today after the positive news about the GSP plus (Generalised System of Preferences Plus),” said a currency dealer, referring to a European Union trade concession. –CB Report
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and for the comfort and safety of the persons on board.” Treasury Decision (T.D. 49814(4), March 13, 1939). Further, through a series of subsequent rulings, Customs required that, in order to be determined “equipment,” the item must also be used in, necessary for, or essential for the primary mission of
the vessel. As a result, Customs issued several rulings indicating that items carried on board a vessel that would be installed subsea by the vessel constituted the vessel’s “equipment.” In effect, this series of rulings allowed foreign-owned vessels to transport oil Sield components between coastwise points.
€230 million of fake, substandard foods seized in global operation
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n a joint operation between INTERPOL and Europol, €230 million of counterfeit and substandard food and beverages were seized. The operation, which was carried out across 61 countries, unveiled a wide range of food fraud across products ranging from olive oil to luxury goods and alcoholic drinks. Operation OPSON VI targeted the criminals behind fraudulent food practices and uncovered
new trends in food fraud. Counterfeit mineral water was among the fake products detected during the global operation. In a press release, Françoise Dorcier, Coordinator of INTERPOL’s Illicit Goods and Global Health Programme said, “This operation has once again shown that criminals will fake any type of food and drink with no thought to the human cost as long as they make a proSit. –CB Report
he UK’s opposition Labour Party will introduce a tax on companies that pay staff more than 330,000 pounds ($425,000) a year if it wins the June 8 general election, according to a person familiar with the plans. Party leader Jeremy Corbyn will unveil the proposed levy on Tuesday as part of a range of policies intended to “reverse” seven years of government by Prime Minister Theresa May’s Conservative Party, which he says has favored the rich over those in need. Under the plan, companies would be charged 2.5 percent on earnings over 330,000 pounds and 5 percent on compensation packages worth more than 500,000 pounds, according to the person, who asked not to be identiSied because the plans are still private. The
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proposal targets employers, rather than employees, to discourage them from awarding excessive pay, the person said. “People want a country run for the many not the few and for the last seven years, our people have lived through the opposite a Britain run for the rich, the elite and the vested interests,” Corbyn will say, according to speech extracts released by his ofSice. “They have beneSited from tax cuts and bumper salaries while millions have struggled and been held back.” Labour is lagging behind May’s Conservatives by almost 20 percentage points in polls. Corbyn will seek to rally support behind an agenda of increased taxes for the wealthy including income-tax rises for those earning more than 80,000 pounds a year and more spending on public services. He will say Labour is offering a “radical and responsible” program that will put “the preservation of jobs Sirst” as Britain leaves the European Union, according to the speech excerpts.
Indonesian economic growth up in Q1
ndonesian economic growth accelerated slightly in the Sirst quarter on improving exports, ofSicial data showed yesterday, but the outlook for a recovery in Southeast Asia’s top economy is subdued. The economy grew 5.01 percent year-on year in January to March, slightly up from the previous quarter’s 4.94 percent, the Central Statistics Agency said. Exports surged 20.8 percent from a year ago and 1.33 percent from the previous three months, said agency chief Suhariyanto, who goes by one name. The increase came on the back of a jump in the prices of some food ex-
ports, such as tea and shrimp, the agency said, while improving conditions in key destinations, such as China and the US, also helped. However, consultancy Capital Economics Ltd said falling prices of coal and palm oil key Indonesian exports were weighing on growth. “With commodity prices likely to stay relatively depressed and credit growth set to remain weak, we expect growth to remain stuck at around 5 percent over the next couple of years,” Capital Economics’ Gareth Leather said. Growth in Indonesia has been stuck at about 5 percent for the past three years. –CB Report
cMhc generates $1.4 billion in net income in 2016
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OTTAWA
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anada Mortgage and Housing Corporation (CMHC) has released its 2016 annual report titled “Innovating for Better Housing Outcomes.” The report captures how CMHC, as Canada’s authority on housing, contributes to the stability of the
housing market and Sinancial system while providing support for Canadians in housing need. In 2016, CMHC supported over 500,000 Canadian households through long-term social housing commitments and provided mortgage loan insurance for more than 350,000 homes, according to a release issued on May 9. CMHC’s mortgage loan insurance and securitization activities operate on a com-
mercial basis without the need for funding from the Government. As a result of these activities, CMHC generated a net income of $1.4 billion for the year ended Dec. 31. At year end, total mortgage insurance capital available was $18.6 billion. On the continued strength of performance, CMHC will be implementing a dividend framework and will begin paying a dividend to the Government of
Canada in 2017. “In 2016, CMHC truly re-emerged as Canada’s authority on housing,” stated Evan Siddall, CMHC president and CEO. “We signiSicantly increased our support for Canadians in housing need through renewed investments in affordable housing; we led a national consultation to inform Canada’ Sirst National Housing Strategy all while supporting Canadian’s access to housing.
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iPoker withdraws Polish Gambling Market over tax
World Customs
WARSAW: The iPoker network has become the latest industry player to cease offering online gambling services in Poland, following the introduction of a new regulatory regime. The new gambling law, which was introduced on 2017, attempts to liberalize the Polish gambling market by legitimizing online gambling, which was effectively prohibited under previous laws. However, the new legislation also put in place a 12 percent tax on gambling firms’ turnover, a measure which appears to have made the Polish market uneconomic for many providers. Several other firms offering online gambling and gaming services in Poland closed their doors to customers in Poland before the new law was introduced, including William Hill, Bet365, Betfair, Pinnacle, EnergyBet, and Olympic Entertainment Group.
hk customs makes seizure of suspected cannabis buds ong Kong Customs yesterday smashed a drug distribution syndicate in Tsuen Wan. During the operation, Customs officers seized about 131 kilograms of suspected cannabis buds with an estimated market value of about $21.5 million. This is a record high in quantity for a seizure of cannabis buds by Hong Kong Customs in the past decade. In early 2017, the Customs Drug Investigation Bureau commenced an investigation into a local drug trafficking syndicate. An operation was then mounted last Saturday during which a logistics company located in an industrial building on Wang Lung Street in Tsuen Wan was raided. Customs officers found a sea-based consignment from North America declared as personal effects in the logistics company. Upon examination, about 131 kilograms of suspected cannabis buds were seized. Customs officers continued their surveillance and arrested three local men who went to collect the consignment yesterday. –CB Report
officer sacked for repeatedly smuggling goods into uk
he Dubai Criminal Court looked into the case of two visitors from the Gulf accused of possessing narcotic substances for trafficking purposes. According to case details, the General Directorate of the Drug Control Department received information that the first defendant was abusing and possessing narcotic substances, and that he was a member of an international gang. After search and investigations, the Drug Control members headed to Al Jafiliya area, behind the Jaffiliya Metro Station, where the first defendant was found in his car, waiting for another person to deliver a large quantity of drugs. The suspects were arrested upon arrival of the second defendant. –CB Report
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finnish customs seizes 950 kg of tainted, carcinogenic spices innish Customs has seized nearly one tonne of spices which were incorrectly labelled or contained dangerous ingredients, according to Helsingin Sanomat. The agency is taking part in the joint Europol-Interpol operation Opson VI, an international endeavour which targets counterfeit and substandard food products, and the organised crime networks behind the trade. Finnish Customs has seized some 950.5 kg of imported turmeric, curry and chilli because the spices were in breach of food safety regulations, Finland’s biggest daily newspaper Helsingin Sanomat reports. Officials uncovered chilli and turmeric that were found to contain the food colouring agent Sudan, which is a known carcinogenic and banned for use in food. They were found at a small Asian grocery store in Helsinki, but the owners of the shop had not imported the banned spices themselves. The responsible importing firm was tracked down and the spices were removed from store shelves. In order to import to the EU spices must include a certificate confirming they do not contain Sudan I,II,III and IV, Petri Lounatmaa, Finnish Customs’ Head of Analysis and Intelligence told Yle. Another seized product was found to have erroneously been marked as organic, the agency said. –CB Report
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Duo caught attempting to traffic 190kg drugs
Friday May 19, 2017
WASHINGTON
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road trafSic ofSicer who was caught attempting to smuggle cigarettes and alcohol into the United Kingdom from Serbia has been dismissed. Police Constable Susan Best, from the Metropolitan Police Service (MPS), had travelled from Belgrade to Luton when the incident occurred. The MPS said it was not the Sirst time the ofSicer had failed to declare goods that exceed the allowed amount brought in from Serbia. On
arrival at Luton Airport in July, PC Best failed to declare 1,800 cigarettes and three litres of brandy, which exceeds the applicable duty free limit. As she passed through the nothing to declare section, she was stopped by a Border Force OfSicer, the goods were seized, and she was issued with a warning. At a misconduct hearing held on Friday (May 12) – which PC Best failed to attend – Sergeant Michael Kirk said she “knew she was in possession of these items far in excess of her allowance and failed to declare it”. “The matters are straight forward, she informed border control of her occupation and elected to hand over the goods instead of pay-
ing the excess tax due of $400,” he added. “She was subsequently issued with a warning form for the seized goods which were for another person. “We say the actions of the ofSicer are so serious as to justify her dismissal. Her honesty and integrity is in question, the fact that she has gone through the green channel at the airport and has apparently done this previously on Slights back from Serbia (support this).” Dismissing her from the force, Assistant Commissioner Patricia Gallen said: “I note that the ofSicer has not attended and I Sind the matter proven as gross misconduct.” She was dismissed immediately and will be notiSied in writing.
Vietnamese ship owners warned about black list
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dmitting that the number of ships held in custody rose significantly in the first quarter of 2017, the Vietnam Maritime Bureau (Vinamarine) said it had warned ship owners against using substandard ships. Nguyen Hoang, deputy head of Vinamarine, when answering Lao Dong’s interview April 25, said when realizing that the number of ships held in cus-
tody is on the rise, Vinamarine, together with the Vietnam Register (VR), have applied comprehensive measures to prevent Vietnamese ships from returning to the Tokyo MOU’s ‘black list’. A report showed that the Vietnamese fleet has 462 ships running on international routes with the capacity of 500 GT and higher. In the first quarter of 2017, 214 ships were examined at international ports and 10, or 4.67 percent, were held in custody because of several problems. The proportion was higher than
the 3.55 percent of the same period of 2014 and 2.77 percent of 2015. In 2016, the Sigure was 4.04 percent. Of the 20 ships, six were held in custody in China, two in Malaysia, one in Indonesia and one in Fiji. The ships were found to have problems in Sire prevention and Sighting, lifebuoy equipment, and watertight and weathertight conditions, systems used in case of emergency, maritime safety and ship management systems. In some cases, ships were held in custody because the ships’ owners did not
pay appropriate attention to practice capability of the crew in the ships’ operation. Ships were mostly held in custody in China and South East Asia, while most of the ships were general cargo ships built 5-10 years in Vietnam. Prior to 2014, the Vietnamese Sleet was put on the black list and was subjected to strict control by port authorities. In 2015-2016, after great efforts, the Vietnamese Sleet running on international routes escaped from the black list and was put by Tokyo MOU on the ‘white list’.
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FIA arrests accused of kidney scam Friday May 19, 2017
Lahore
LAHORE: Federal Investigation Agency (FIA) Gujranwala team arrested another accused of kidney scam. According to FIA spokesman, the team conducted a raid and arrested accused Abdul Majeed who used to bring foreign nationals to Dr Fawad and Altamash for kidney transplant. Further investigation is underway. Meanwhile, FIA Gujranwala team arrested a proclaimed offender Zulfiqar Ali Shah alias Pehlwan resident of Kahrota Syedan district Sialkot.
customs Intelligence seizes 106 containers of 585m-meter Indian cloth
customs preventive collects Rs 2,838 million duty, taxes
LAHORE
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akistan Customs’ intelligence wing has seized huge quantity of smuggled Indian grey cloth en route from India to Lahore via Dubai. Directorate General Intelligence & Investigation (Customs) seized 106 containers carrying 585 million meters cloth, which was being illegally imported by six Lahore-based companies, including M/s Dastagir Traders, M/s IC Master, M/s Mustafa Enterprises, M/s SBS Group of Companies, M/s Shahzad Traders and M/s World Fashion Textiles. Sources revealed that these companies sent about $7.6 million abroad for smuggling of this huge quantity of grey cloth. Sources fur-
pRA inaugurates state of the art training academy he Punjab Revenue Authority has established a state-of-the-art training academy in Lahore for training of the employees. According to the details available to Customs Today, Punjab Revenue Authority Chairman Dr Raheel Ahmed Siddique while addressing to the officers after inauguration of the academy, said that the authority will enhance the capacity and training of its staff. The chairman said the PRA is focusing on the capacity building of its officers, especially in the wake of the recruitment of new officers. This academy is the first of its kind which is also equipped with the Virtual Learning Environment (VLE) and it will also provide online training saving time and money he said. Chairman told the officers that initially, all the courses are planned to be indigenously prepared which can be outsourced to institutions like LUMS and IBA at some advanced stage. –CB Report
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ther said that FIRs have been registered and cases of money laundering will also be framed against these ‘importers’. The money has been siphoned-off illegally to the actual manufacturers/sellers of the cloth in India, which constitutes an offence under the Anti-Money Laundering Act, 2010. The Directorate General, Intelligence & Investigation (Customs) will also report the matter to the State Bank of Pakistan (SBP) and establish money trail. The Indian cloths were cleared from Dubai Customs and after repacking, the banned item is reshipped from Dubai to Lahore via Karachi. The false documents were presented that the cloths have been manufactured in China and shipped to Pakistan via Dubai. The ‘importers’ used NLC and Prem Nagar Dry Ports of Lahore to get their consignments, carrying 58,457,586 metres cloth, cleared.
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ollectorate of Customs Preventive has collected Rs 2,838 million duty and taxes during April 2017. As per details, the Collectorate collected Rs 843 million customs duty during the month of April against the proposed target of Rs 955 million. Similarly, the collectoarte collected Rs 1,384 million on account of sales taxes during the month under review against the target of Rs 1,373 million. On the other hand, the collectorate collected Rs 609 million withholding tax (WHT) against the target of Rs 714 million for the month of the April FY 2017. Likewise the Collectoarte collected Rs 1.19 million on account of federal excise duty during the
Import of cotton from India falls in last week through Lfu wagha
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otton imports from India remained lowest during previous week. Pakistan is a key buyer of raw cotton from India and has a big share in total imports from India specially through Land Freight Unit Wagha. According to sources Customs Today Pakistan is importing raw cotton from India due to bad crop in Pakistan last year. Now improvements in production of cotton in Pakistan import of cotton has decreased in last week. It was reached up to 200 trucks per week
but now fall to 20 to 25 per week that was stood at average of 50 per week during last month. Sources told that Pakistan is importing cotton from India and it is decreasing day by day. OfSicials from Land Freight Unit (LFU) Wagah informed that import of Indian cotton has decreased since the last two month. Now it has reached up to average 25 to 20 trucks in last week. Meanwhile, total trade volume between two neighboring countries Pakistan and India. –CB Report
month against Rs 50 million proposed target for the month. Overall the Collectoarte collected Rs 2838 million duty and taxes during the month of April, 2017. Sources told Customs Today that collectors of
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Customs Lahore Preventive Ch ZulSiqar Ali has directed ofSicers and ofSicial all alike to do more to achieve Sinancial year’s target and go after the tax evaders and never give up to any undue pressure.
customs Appellate tribunal rejects appeal
ustoms Appellate Tribunal has dismissed the appeal Siled by Collector Preventive Lahore against Asim Dar, a resident of Lahore, and Additional Collector Customs (Adjudication) Lahore. Tariq Zia, Member Judicial benchII declared in the judgement that the appellant has failed to bring any material irregularity in the Order-inOriginal. In the absence of any concrete evidence in this regard, the tribunal found no reason factual to interfere with the Order-inOriginal passed by the adjudication authority so, dismissed the present appeal being devoid of any merit.
As per brief details, information was received to the customs department that a huge quantity of smuggled motorcycle parts were kept at godown of Saim Autos Nicolson Road Lahore. Search warrant under section 162 of the Customs Act 1969 was obtained and then the ASO staff raided the said premises. The available person introduce himself as Asim Dar. During the searching, the customs staff recovered 26,637 kilogram foreign origin motorcycle parts. On demand, the said person failed to produce any legal document regarding lawful imports of the motorcycle parts. –CB Report
court seeks challan of suspect in smuggling of dry milk
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LAHORE
M IMRAN MehAR
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he Special Federal Court of Customs Taxation and AntiSmuggling has ordered the customs investigation team to file complete challan of a case against Zahid Rasheed on the next date of hearing. Earlier, the court had ap-
proved a 14-day judicial remand of the suspected who was arrested by the customs authorities from Lahore on the charges of smuggling powder milk by showing it as plastic raw material. Sources told Customs Today that Zahid Rasheed was booked by the customs team while he was trying to smuggle a huge quantity of powder milk of different brands.
The Customs intelligence on secret information intercepted a truck in suburbs of Lahore and found it loaded with international branded powder milk. After that, the customs intelligence, on base of investigation raided a warehouse and found a huge quantity of powder milk. The customs teams found 9,349 bags of powder milk of different brands. Weight of the
recovered powder was 232,000 kilogram worth Rs 70 million. Zahid Rasheed has made a huge loss to the national kitty in the wake of taxes and duties. Sources said that smuggled milk is made of America, Turkey, Holland, Korea and India. All of the milk was smuggled from these countries by different routes, especially from Afghanistan.
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Port to open bidding for B1.3 billion container station BANGKOK: The Port Authority of Thailand (PAT) plans to open bids for a container freight station (CFS) project worth 1.3 billion baht at Bangkok port, known as Klong Toey port, this year. PAT director-general Sutthinan Hatthawong said bidding will be held to seek a contractor to build the CFS facility to enhance the port’s capacity in handling up to 120,000 Twenty-Foot Equivalent Units (TEU) outbound shipping containers per year. The agency is drafting the terms of reference (ToR) in preparation for the bidding, Lt Sutthinan said, adding the station is expected to open in 2019. The CFS is among eight port development projects valued at 97.9 billion baht under PAT’s five-year plan from 2017-2021.
east coast port services its largest container ship ever he largest-capacity container ship ever to service the East Coast docked Monday at the Port of Virginia’s International Gateway terminal. The arrival of the COSCO SHIPPING Lines Co. Ltd. Vessel from Hong Kong is being hailed in the industry as the start of the “big ship era” for East Coast ports. The ship arrived almost 11 months after the Panama Canal reopened following a nine-year, $5-billion expansion. The new, 50-foot-deep channels can accommodate the new standard of larger international container vessels. U.S. Atlantic Coast ports, along with their private- and public-sector partners and the federal government, have spent billions of dollars to dredge harbors and navigation channels to the 50-foot standard and upgrade facilities to accept the
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larger vessels. The arrival of the COSCO’s Development, a 13,000 twenty-foot-equivalent unit (TEU) ship, demonstrates that the money invested in expanding facilities was money well-spent, according John F. Reinhart, CEO and executive director of the Virginia Port Authority. “This vessel is taking full advantage of our 50-foot channels and an expanded Panama Canal,” Reinhart said in a press release. “As the ships get bigger there are corresponding cargo loads.” “From this day forward, we’ll be seeing vessels of this size with regularity,” he said. Before its expansion, the Panama Canal could accommodate no ships larger than 5,000 TEUs and the biggest ship to arrive at the Port of Virginia before the Development was about 10,000 TEUs. –CB Report
Ports & Shipping
global ports holding looks fairly priced ahead of Ipo WASHINGTON
port houston to host 2nd annual Joc gulf Shipping conference ort Houston is hosting the 2nd Annual JOC Gulf Shipping Conference, organized by The Journal of Commerce and parent company IHS Markit, May 14-16 at the Marriott Marquis Hotel in downtown Houston. With the Panama Canal expansion complete, regional U.S. ports from Tampa, Fla. to Brownsville, Texas are working together to direct the future of the Gulf Coast in a positive manner. The JOC Gulf Shipping Conference will take an in-depth look at the latest trends, problems and solutions emerging for cargo owners importing and exporting through the Gulf. Port Houston was the host port for the first shipping conference last year and welcomed more than 250 attendees. This year’s event will provide information and insights that cargo owners can use to plan and execute shipments of container, breakbulk and project cargoes through US Gulf ports. –CB Report
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arbour services provider Global Ports Holding is preparing for its IPO on the London Stock Exchange with a target price range of between 735p and 875p. This will give it an expected market capitalisation of between £462m and £539m. The $75m (£58m) of new money it is looking to raise will go towards making acquisitions in the Caribbean and Asia, and expanding its existing presence in the Mediterranean. Operations at the group are split nearly evenly between commercial and cruise ports. The commercial side centres on ports in Turkey and Montenegro, while the latter also exports a portion of Serbia’s goods. The leisure part of the business is the world’s largest independent cruise port operator and the only current consolidator of cruise ports. It operates by buying and privatising existing government-owned ports and
Friday May 19, 2017
‘giving them a makeover’, making it a capital-light business. Management said most cruise ports are underdeveloped, more akin to airport terminals 20 years ago. Global Ports aims to make these terminals a more pleasant experience for travellers. In the year to December 2016 the company reported $115m in revenue with pre-tax proSits of $5.2m. During the last three years adjusted cash proSits grew at a compound annual growth rate of 14 per cent, which
management believes will be maintainable as ports schedule their operations around two years in advance. The company will also look to use the connections of former EU trade commissioner Peter Mandelson, who joined the Global Ports board ahead of the listing. Healthy cash proSit margins of 69 per cent in cruise ports and 72 per cent in commercial, along with an average cash conversion of 85 per cent over the past three years, point towards good dividend potential.
port volume growth slows amid mining turmoil T
WASHINGTON
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he volume of cargo passing through the country’s ports grew 4.15% year on year in the Sirst quarter, the Philippine Ports Authority (PPA) reported, mainly due to increasing trade and the growing economy but tempered by the mining industry crackdown. PPA said in a statement on Tuesday that cargo volume for the Sirst quarter of 2017 rose to 54.298 million metric tons (MMT), from 52.133 MT handled during the same period last year. PPA General Manager Jay Daniel R. Santiago said while the industry posted volume growth for the period, growth, however, slowed compared to the 8% posted a year earlier. “Philippine cargo volume sustained its growth but on a slower pace for the Sirst quarter of 2017 due to the signiSicant drop in export vol-
ume. Critical developments clouding the mining industry have also affected the industry’s shipments in several ports nationwide,” the agency said in its statement. Foreign volumes during the period rose by 3.57%, accounting for 30.473 MMT, against the 29.422 MMT handled in the Sirst three months of 2016 while domestic cargo saw a rise of 4.91% to 23.825 MMT. “The healthy economic performance explains the sustained robust operations of Philippine ports at large. While we posted volume growth for the period, the growth pace, however, is slower… the slower pace is due primarily to the overall decline in export cargo volume, which dropped 8% for the Sirst quarter compared to last year,” Mr. Santiago said. PPA said for the period, export volume was only at 9.04 MMT compared to the 9.78 MMT handled in the same period in 2016. Container volume,
PPA said totaled 1.521 million twentyfoot equivalent units (TEUs), up 4.08%, with domestic boxes growing 7.71% to 638,435 TEUs while foreign boxes rose 1.61%. Boxes for export were the drag on growth, falling 5% to 408,018 TEUs. Among the ports that posted growth in TEU volume include NCR North, Davao, Batangas, South Harbor and the Manila International Container Terminal. Passenger trafSic, on the other hand, maintained its upward trend with a 0.89% increase to 15.893 million. “The nominal growth was due to the change in the period of the Holy Week celebration while the reliance by the sea-traveling public on Roll on-Roll off (RoRo) vessels, fastcraft and motorized bancas as primary mode of transportation for domestic interisland connectivity remained the primary (factor for) passenger trafSic,” PPA added. Vessel calls meanwhile fell by 1.59% to 103,499, with domestic vessels accounting for
most of the decline. PPA said the reduced vessel trafSic was a “result of successive cancellation of trips due to inclement weather by the Philippine Coast Guard and the routine maintenance of passenger vessels that limited the number of trips.” Productivity, particularly at the Manila Ports that handled some 85% of the total cargo volume to and from the Philippines, remains healthy with a combined yard utilization of 55% with a berth occupancy rate of 61% and quay crane productivity of 25 moves an hour per crane. Despite pronouncements from the Department of Public Works and Highways it is doubling imports due to the various infrastructure developments being carried out by the government, PPA said it is “not expecting” that such development will drastically increase volume that will warrant another overhaul of the agency’s revised 2017 volume forecast.
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Hyderabad ASO confiscates 29 mobile-sets worth Rs336000 HYDERABAD: The Anti-Smuggling Organization, Customs Preventive Sukkur, has seized 29 sets of smuggled galaxy mobile phones valued Rs336000 involving duty/taxes of Rs157000. The ASO team, following instructions of Hyderabad Customs Collector, Akhlaq Ahmad Khattaq and under the supervision of Additional Collector Rehmatulah Vistro, conducted raid over the region. The officials started checking the vehicles near the check-post of Jacobabad in Sukkur.
Friday, May 19, 2017
CUSTOMS BULLETIN
customs preventive recovers 6,5000 liter smuggled Iranian high speed diesel KARACHI MuBeeN huSSAIN
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ustoms Preventive team has caught a boat carrying thousands of liters smuggled Iranian origin high speed diesel. According to the details, Customs Preventive showing tremendous performance has recovered smuggled Iranian high speed diesel after a raid in the open sea in the limits of the country’s sea route. The sources informed Customs Today that the raid was conducted on a secret information received by the higher authorities on which a team under the supervision of deputy collector Customs Preventive Headquarters Ali Raza was constituted. The deputy collector Customs Preventive Headquarters beefed up the surveillance and directed all the informers to be alert as well as share every single movement of the smugglers in the area. During the raid at a boat named Alkhaleej, the customs team recovered 65,000 liter smuggled Iranian origin high speed diesel from the secret places of the boat. During the raid three smugglers, named Naeem Bakhsh, Aasa Bilal and Lal
Muhammad, were also apprehended from the boat. The customs officers have taken the smuggled diesel and the boat in the custody and an FIR has been
lodged against the culprits involved in the heinous crime, whereas the investigation has been started in the case. The source also informed that
due to the strict checking and vigilance on the land routs now smugglers are trying to smuggle the contraband items as well as diesel from the sea routes. The recent raid is the
third biggest action in the open sea after which huge quantity of diesel is recovered. The smuggled Iranian High Speed Diesel (HSD) worth millions of rupees in the market.
Budget proposals 2017-18: fBR urged to bring down St rate to 14% KARACHI
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he Federal Board of Revenue (FBR) has been urged to bring down sales tax rate to 14 percent in the budget 2017/2018 against the existing Slat rate of 17 percent. Federation of Pakistan Chamber of Commerce and Industry (FPCCI) in its budget recommendation of next Siscal year said that
prevailing rate of sales tax at 17 percent in Pakistan is too high, as compared to other countries in the region. This high rate is the root cause of tax evasion, corruption, thin tax base and smuggling. Major part of Sales Tax is refunded or adjusted and net tax in the kitty of government comes to around 5 -6 percent. The higher sales tax rate at 17 percent and its procedure is mother of several ills. Its higher rate stands in the way of its full collection. Being a consumption tax, it directly impacts inSlation, promotes smuggling, encourages massive tax evasion and corruption.
The FPCCI said that there are only about 150,000 registered sales tax
payers out of which about 75,000 are actively Siling sales tax returns
Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi
and a large number of potential tax payers such as retailers are out of tax net. In USA, the richest country in the world, the sales tax rate is 8 percent, in India, 12.5 percent, Indonesia 10 percent and in most of the Far Eastern Countries, it is between 6 percent and 8 percent. The apex trade body said that according to FBR’s own study out of 17 percent sales tax, the net revenue collected by the government is between 5 6 percent. Sales tax be effectively used to broaden the tax base provided the standard sales tax rate is brought down for which FPCCI recommends the following mode of GST.