Daily on www.customsbulletin.com
Find us on
pAkIStAN’S fIRSt INDepth NewSpApeR oN cuStoMS
Daily
ABC Certified
Karachi, Sat May 20, 2017
MULTAN
IMRAN ALI
www.customsbulletin.com
M
ultan Dry Port Trust has demanded to amend the procedure of vehicle registration with WeBOC for facilitation of the vehicle owner to fulfill vehicle shortage at Multan Dry Port. Chairman Multan Dry Port Trust Khawaja
Muhammad Faazil told that Multan Dry Port Trust is facing severe issues in the registration of vehicles used in the import and export clearance process. The current process of vehicle registration from WeBOC is so problematical that vehicle owners are not pleased with it. There are almost 250 vehicles registered available with WeBOC for import and export clearance at Multan Dry Port. Customs Preventive Karachi made it mandatory
Vol 2, Issue No. 138
Price Rs. 14.00
for registration of all vehicles in Karachi Collectorate and due to registration from Karachi Collectorate it consume a lot of time for WeBOC registration. He told that vehicle owner avoid registration due to complicated procedure of registration with WeBOC where it needs original vehicles documents and citizen national Identity card (CNIC) for the registration of any vehicle with WeBOC and it took more than week if objection is not moved.
Customs Audit Cell detects tax evasion of Rs02m by M/s Al Quresh Fabrics
Commerce Ministry proposes zero-rating facility for all export-oriented sectors
Rs1000b agreement for ML-1 with China great achievement: Saad
PCA detects for tax evasion of Rs567615 by M/s IOSO Int’l
DG Valuation revises customs values of vinyl acetate monomer, oxalic acid
The MCC, Audit Cell Customs Dry Port Faisalabad, detected duty and tax evasion | See pAge 02 |
Commerce Ministry has proposed the govt to implement zero-rating facility | See pAge 03 |
Saad Rafique that the framework agreement for investment of Rs 1000b | See pAge 04 |
Directorate of Customs PCA has summoned M/s IOSO International | See pAge 14 |
DG of CustomsValuation has revised the customs values of vinyl acetate monomer | See pAge 16 |
2
www.customsbulletin.com
Pakistan Customs decides to change US, Nato supply route Saturday, May 20, 2017
National
PESHAWAR: The Customs authorities have decided to change Nato, ISAF, US Army supply route from Chaman to Torkham border. The Commerce Ministry has also endorsed the Customs Department’s decision, which was taken after deadly skirmishes between Pakistan and Afghan forces at Chaman border. The authorities have completed all the formalities in this regard. A large number of containers from US Consulate are waiting for security clearance at Torkham border. However, if any attack from Afghan side causes closure of Torkham border, the entire exercise would be futile.
customs Audit cell detects tax evasion of Rs02m by M/s Al Quresh fabrics
fto hears Al-Riaz petroleum case against Rto Sargodha LAHORE
FAISALABAD
NAeeM SheIkh
SAJID NAwAZ
T
he Federal Tax Ombudsman (FTO) has postponed the hearing of a case filed by proprietor Al-Riaz Petroleum against the Regional Tax Office (RTO) Sargodha until the next hearing. FTO Advisor Mazhar Farooq Shirazi heard the case in which counsel for appellant argued that the RTO Sargodha has not released the refund to the appellant of the last two years. He said the RTO Sargodha has been collecting excessive tax from appellant Riaz Ahmed for the last two years. The company approached the officer concerned many times for the release of refunds but the department did not pay the refunds even after the passage of a reasonable time. Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO) seeking intervention in the case. The counsel appealed the FTO advisor to direct the commissioner of RTO Sargodha to clear the refund claims. The counsel further said the delay in release of refunds put a burden on taxpayers adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayers. On the other hand, counsel for the RTO argued that appellant has not submitted all the record in the office on the basis of which it is claiming refunds.
www.customsbulletin.com
www.customsbulletin.com he Model Customs Collectorate (MCC), Audit Cell Customs Dry Port Faisalabad, detected duty and tax evasion worth Rs02million by M/s Al Quresh Fabrics by importing 100% polyester white fabrics in their manufacturing through Licence No: 05/MFG/FSD/2014 on scrutiny of shipping bills. Sources told Customs Today, Model Customs Collectorate, Faisalabad Audit Cell Customs, during the course of audit for the period 31-102014 to 11-07-2016, M/s Al Quresh Fabrics Punjab Industrial Estate Faisalabad imported 100% polyester knitted white fabrics in manufacturing for which they were issued Licence No: 05/MGF/FSD/2014. On the scrutiny of shipping bills and allied documents provided by the licence, it was found that the licensee has made export of whole finished goods with the description of goods as 100% cotton bleached quilted fitted mattress protector and PC 52/48 mattress protectors as well as pillow protector instead of 100 percent polyester bleached fitted mattress protector. The licensee has contravened the provision of Section 352(1) of the Customs Act-1969. During the scrutiny of data that company export of 100% cotton
T
and 52/48 PC made goods cannot be treated as export of 100% polyester knitted Qitted mattress protector. On this account, Rs02million as duty and taxes are recoverable on the imported input goods along with additional duty and taxes since the licensee has failed to export the input goods under SRO 450(1) 2001 dated 18-06-2001. It has been determined that the
company has deposited Custom Duty (CD) of Rs898243, Sales Tax (ST) worth Rs763506, Income Tax (IT) Rs315283 as detailed in annexure A. The Faisalabad customs authorities have intimated the company to pay the evaded amount of duty and taxes. The contravention report has been submitted to the Deputy Collector (DC) Bond MCC Faisalabad
for onward submission to the collector of customs adjudication for adjudication. It was intimated further that if no one appears or no reply is received then it shall be deemed that the part has nothing to offer in rebuttal of the observation and case shall be dealt as per law on the basis of facts available on record with the MCC audit cell authorities.
ASo impounds vehicles & other items worth Rs01.4 million T
HYDERABAD
ASLAM ANJuM QuReShI www.customsbulletin.com
he Anti-Smuggling Organization (ASO) has impounded the non-duty-paid vehicles and contraband cigarettes worth Rs01.4million involving duty/taxes of Rs01.5million during April 2017. The ASO team, following the instructions of Model Customs Collectorate Collector Akhlaq Ahmad Khattaq, conducted a number of
raids to thwart the smuggling bids in the region. The ASO Hyderabad team impounded foreign origin22 cartons, 1100 packets of Royal Business Brand, 12 cartons, 600 packets of Reds Virginia Brand and 40 packets of foreign origin cigarettes Slim Brand valued at Rs345000 involving duty taxes of Rs609000, two nonduty-paid vehicles including Mercedes Benz car with registration No: ADK 345 modelled 1998 worth Rs600000 involving duty taxes of
Rs840000 and Suzuki Hi-Roof (U/S 157) worth Rs300000 during different operations in Hyderabad. The ASO team, comprising Superintendent Abu Muhammad Warsi, Inspectors Asadudin Mirza, Iqbal Mughal, Waqar Ahmed Baig, Syed Nazim Ali, Muhammad Shakeel Khan, Imdad Abro, Waqar Sareo, Mushtaq Ali Lakho, Sepoys and Driver Sadiq Khaskheli, Nisar Ahmedani and others, participated in the raids. OfQicials said the department was taking measures to curb smuggling of non-
duty paid goods, especially smuggling of items, which are injurious to human health. This performance has been showed against the seizures made in corresponding period of year 2016-17. Collector MCC-Hyderabad Akhlaq Ahmad Khattaq has issued strict instructions to all the antismuggling formations for utilization of all available resources to curb the menace of smuggling in the interest of the evenue of government. Meanwhile, The Customs Investigation and Intelligence’s Field Investigation Unit
(FIU) has impounded a non-duty paid used Hino truck and 29,000 liter hydrocarbon oil along with an oil tanker besides seizing various contraband items including cumin seeds worth Rs12.00million involving duty/taxes of Rs03.8million during the April of Qiscal year 2017. The Customs FIU, following directives of Customs Intelligence Director General Shaukat Ali and Director Tahir Qureshi, foiled many attempts to smuggle hydrocarbon oil, cloths, cumin seeds and other items, into Pakistan.
3
www.customsbulletin.com
Pakistan starts lemons import from India through LFU Wagah LAHORE: Pakistan has started the import of Indian lemons through Land Freight Unit (LFU) Wagah in view of the rising demand of lemons in the local market, especially Punjab as month of Ramzan is approaching fast. Sources told Customs Today that Pakistan has decided to import lemons from India as its rate is expected to increase in the local markets before Ramzan. Rate of lemons had reached Rs 600 per kg in previous month. Due to increase in demand and low production of crop, Pakistan has decided to import lemons from India. About of 5 to 8 trucks are crossing the border on daily basis.
faisalabad ASo confiscates NDp almonds, Iranian raisins
Saturday May 20, 2017
National
govt proposes zero-rating facility for all export-oriented sectors
FAISALABAD
NAeeM SheIkh
www.customsbulletin.com
he Customs Anti Smuggling Organization (ASO) has seized 11,697 kilograms of foreign origin almonds and Iranian origin raisins along with carrier vehicle Nissan truck worth R3024354 involving customs duty and taxes to the tune of Rs1214612. Sources told Customs Today that an ASO team impounded a Nissan truck bearing registration no: TKJ-715 near Merak Sial Shorkot Road Jhang and recovered foreign origin almonds hard 680 kilograms and 11017 kilograms of Iranian brand raisins. The officials asked the accused named Muhammad Shabaz son of Zulifkar Ali to show documents regarding its legal import, but he failed to provide any relevant documents.
T
court extends judicial remand of milk smuggler LAHORE
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
he Special Federal Court of Customs Taxation and Anti-Smuggling extended the judicial remand of an accused, Zahid Rasheed, arrested by the customs authorities from Lahore on the charge of smuggling powder milk by showing it as plastic raw material. According to sources of Customs Today, accused Zahid Rasheed was booked by the customs intelligence while trying to smuggle a huge quantity of powder milk of different brands into the country. The customs intelligence, on a tip-off, intercepted a truck in the suburbs of Lahore city and found it loaded with the international branded powder milk. The customs intelligence raided a warehouse and found 9,349 bags of powder milk. The weight of the recovered milk is 232,000 kilograms.
T
ISLAMABAD
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
T
he Ministry of Commerce has proposed the government to implement zero-rating facility on all the exports oriented sectors. The zero rating of sales tax for the Qive exports oriented sectors may be allowed on all inputs, including packaging material. Presently, the zero-rating facility is available to only Qive export sectors which include textiles (US$9,362 million), leather (US$396 million), surgical goods (US$262 million), sports goods (US$234 million) and carpets (US$74 million). However, other sectors which contribute to the exports even more than the eligible sectors e.g. Rice (US$1,376 million), Qish & Qish preparations (US$240 million), fruits (US$356 million), meat & meat preparation (US$212 million), chemicals (US$294 million), pharmaceuticals (US$ 588 million), cement (US$ 248 million), plastic material (US$ 141 million) have been ignored. Secretary Commerce Mohammad Younus Dagha while speaking at a pre-budget seminar on “Budget for Export Growth” said that Ministry of Commerce had been categorically backing the views of the export sector on the policy choices besides other factors which have been affecting the competitiveness. Therefore, he had visited personally the exporters in Karachi and Lahore to receive budget proposals
for export growth. The objective of this seminar was to provide an opportunity to the private sector stakeholders to present their trade related proposals to the public-sector policy makers. He revealed that majority of the budget proposals received in Ministry of Commerce related to tariff, sales tax refunds and customs rebates. Therefore, he personally took the initial set of proposals to the Chairman FBR, who kindly agreed to favorably process all the proposals. Mohammad
the objective of this seminar was to provide an opportunity to the private sector stakeholders to present their trade related proposals to the public-sector policy makers
court extends physical remand of smuggler
C
KARACHI
M B RANA
www.customsbulletin.com ustoms (Taxation & AntiSmuggling) Court Judge Syed Faiz Rasool Rashdi sent accused Amer Muhammad S/o Syed Muhammad of Customs Department on physical remand till May 2017. He was booked in a case of contraband cigarettes and mobile phones. During the hearing, investigation ofQicer produced above named accused before the court and informed it that
on a tip-off, staff of Anti-Smuggling Model Customs Collectorate Preventive, posted at the Moachko Choak Point Karachi, intercepted a Hino bus with registration No: CH-14538. During the search, it recovered digital stillcameras of assorted brand, foreign origin used 1600 Nos, 55 cartons containing Pine Light cigarettes, made in Korea, four cartons containing L9M cigarettes, mobile phones, assorted models and brands of foreign origin 125 Nos. He further informed the court that after the formalities, staff of the
Customs Department impounded abovementioned goods along with a Hino bus totally valued Rs20million. Investigation ofQicer requested the court that prosecution needs physical remand of the arrested accused for further investigation and extraction of evidences therefore court may send him to the lockup of the Customs Department. After his arguments, court sent the accused on physical remand and directed the investigation ofQicer to produce him on the next date of hearing along with a progress report.
Younus Dagha, the secretary commerce presented the following proposals on behalf of the stakeholders. First proposal was the pending Sales Tax Refunds of the export sectors may be paid and a mechanism for time-bound processing of refunds may be devised. The stuck-up refunds is the single-most important reason, stated by the stakeholders, for decline in exports as it is affecting the liquidity and cost of Qinance for the export sector.
customs court adjourns hearing of 4 bail pleas he Special Federal Court of Customs Taxation and Anti Smuggling has adjourned 4 different pre arrest bail pleas. According to details the Customs Court adjourned the hearing of 16 cases related to customs matters including 4 pre arrest bail pleas. On Wednesday during the hearing of most of the cases.
T
4
www.customsbulletin.com
Rates for number plates of vehicle, motorbikes reduced ISLAMABAD: Excise and Taxation department has reduced the rates for number plates of vehicles and motor cycles to Rs 800 and Rs 400 respectively. Parliamentary Secretary for Interior, Muhammad Afzal Dhandla informed National Assembly Wednesday during Question Hour that EHA Hoffman (Pvt) Ltd was preparing number plates of motor cars and motorcycles for Excise and Taxation Department Islamabad. Meanwhile, replying to another question, the parliamentary secretary said a proposal for repair and maintenance of streets of the federal capital including streets of sector G-7/3 was under consideration.
Saturday May 20, 2017
Business
‘Accord for ML-1 with china great achievement’ LAHORE
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
P
akistan Railways Minister Khawaja Saad RaQique said on Thursday that the framework agreement for investment of Rs 1000 billion on upgradation of PR’s Main-Line (ML-1), signed with China was a big breakthrough for the Railways. Addressing a press conference at the PR headquarters here, he said that these funds would be spent on upgradation of Peshawar to Karachi track, PR Walton Acadmy Lahore, and upgradation of Havelian Container Terminal. He said that this investment would transform the rail-
fIA traces websites with anti-army content MULTAN
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
ederal Investigation Agency (FIA) has initiated probe at the behest of interior ministry over vilification drive against army whereas the security watchdog is also amassing details of bloggers spitting venom against law enforcement agencies (LEAs) on social media. FIA officials are closely monitoring all websites filled with content against security agencies and has traced at least 12 such websites. Similarly, it has spotted some people with affiliations to certain political parties.
F
ways, and the people of Pakistan would see new railways in near future. The minister said that under this agreement, the ML-1 track would be upgraded for speed of 160
km/hour, double track would be laid, fencing would be installed in populated areas along the track, automatic modern signalling system would be introduced for accident-
free travelling, new locomotives of 160 km/hour speed would become part of the railways. He said that work on this project would be started in the current year while a project management consultant (PMC) would be appointed to monitor the project and its progress. “We did not accept Chinese as the PMC and an impartial consultant would be appointed after international and transparent bidding,” he added. The minister declared the Pakistani delegation’s visit to China along with all four chief ministers under the leadership of Prime Minister Muhammad Nawaz Sharif as fruitful and successful. “We attended the One-Road-One-Belt (OROB) seminar and signed several agreements and MoUs,” he said.
uk-pak Business council delegation to promote commercial relations I
ISLAMABAD
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
n order to promote commercial relations between Pakistan and UK, Pakistan High Commission London is actively supporting a six member delegation of Pakistan Britain Business Council (PBBC), which is planning to visit Pakistan from May 18 to 28, 2017. According to a message received here Tuesday, the delegation is being led by Julian Hamilton, Chairman PBBC and mainly comprises businessmen
representing Professional & Financial Services, Manufacturing & Energy Sector of United Kingdom. During the visit, the delegation will visit Karachi, Lahore and Islamabad and will meet key government and business representatives. They will also sign a MoU with FPCCI to promote commercial relations between the two countries. This delegation will do the ground work for the bigger trade delegation which PBBC plans to send to Pakistan in September this year under the chair of Former Foreign Secretary, Jack Straw. The Pakistan High Commission, London has also played an important role
in developing linkages between PBBC and London Chamber of Commerce & Industry. The two important platforms are soon to sign a MoU in a ceremony to be hosted by this High Commission. In yet another key initiative, the Pakistan High Commission, on the request of Government of Punjab, is sending many British Investors/ businessmen having background in Qinancial services, professional services & infrastructure development to participate in the “Second International Seminar on Business Opportunities in Punjab” which is going to be held in Lahore from May 22-23, 2017.
Sc directs NoR to pay Rs3.05b to Saudi Aramco ISLAMABAD
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
upreme Court on dismissed National Oil Refinery’s appeal against imposition of fine by State Bank of Pakistan (SBP) and directed the refinery to pay Rs 3.05 billion to Saudi oil company Aramco on account of late payment. A three-member bench of the apex court headed by Chief Justice Mian Saqib Nisar heard the case filed by National Oil Refinery against fine imposed by SBP over late payments to Aramco. It is to mention that SBP was the guarantor of agreement between National Oil Refinery and Aramco. The SBP imposed fine on National Oil Refinery over late payments to Saudi Oil Company. Chief Justice Mian Saqib Nisar remarked that SBP was the guarantor and the agreement was between companies instead of countries. He remarked that the SBP imposed fine on refinery for not making payments in time according to law. Advocate Saddiq Mirza counsel for Federal Board of Revenue informed the court that SBP imposed penalty according to law and pleaded the court to dismiss appeal. While accepting the stance of FBR, apex court dismissed the appeal of National Refinery and maintained the decision of SBP.
S
Bohra community delegation visits AJk for investment MIRPUR
A
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
s the Azad Jammu and Kashmir (AJK) government invited entrepreneurs from across the country to invest in tourism, energy, mineral and hotel industry sectors in state, a high level delegation of business fraternity from the Bohra Community Karachi paid visit to explore the possibility of investment in the
aforesaid trade sectors in the state. On the motivation of President Sardar Muhammad Masood Khan, the delegation comprising leading investors and traders of Bohra Community revisited the capital on the other day and took interest in investment after getting satisQied on the security and law and order in the state, ofQicial sources said. Addressing a luncheon held for the delegation at the President House. The President pointed out that
Neelum Valley was very suitable for pharmaceutical industry as the valley was replete with natural herbal and medicinal plants which could also be planted there if required in suitable conditions. Khan believed that after setting up mineral water plants, it could also be supplied all over the country from Neelum Valley. He said vegetables, fruits and Qlowers were found in plenty in the area and could be preserved through technology to supply
within the country adding that investment in agriculture, horticulture and Qloriculture was a pretty proQitable business. “There is also wide scope of producing LNG gas by setting up its plants in Neelum Valley that can be sold on cheap rates to the people of the vicinity. This will also help overcoming the problem of deforestation in the Valley, “ he said. The president said the Valley was also rich in minerals. “The Valley also
has Kashmir white marble and granite which can be supplied to the world after proper planning and production. There is also scope of housing and land development and solar energy in many parts of AJK.” The head of Bohra Community delegation Mustansir Poonewala, Speaker Legislative Assembly Shah Ghulam Qadir and Minister Sports Ch. Muhammad Saeed also addressed the occasion and welcomed the investor’s delegation to AJK.
www.customsbulletin.com
ADVERTISEMENT
5
6
www.customsbulletin.com
LAHORE M hAYAt www.customsbulletin.com
p
unjab Revenue Authority (PRA) is all set to achieve a target of Rs 83 billion for the Qinancial year 2016-17. Infrastructure Development Cess on clearance of goods and articles is not a double taxation. Federal Board of Revenue (FBR) should disallow RAs collection of taxes from its system at Karachi ports. Raids are being conducted against tax evaders as last resort. The authority has increased number of taxpayers from 8,700 registered taxpayers to 40,000 taxpayers and is striving to increase the number to 50,000 in two years’ time period. These views were expressed by PRA Chairman Dr. Raheal Ahmad Saddiqui in an exclusive interview with Customs Today. Saddiqui is known as competent, upright and honest ofQicer in administrative services. He has extensive experience to his credit as EDO Finance and Planning besides he also formed Khyber Pakhtunkhwa Revenue Authority (KPRA) and remained Secretary Excise & Taxation, KPK. He informed this scribe that Punjab Revenue Authority (PRA) is all set to achieve revenue collection target of Rs83 billion for the Qinancial year 2016-17. The authority will Qix a target of Rs 120 billion for the Qinancial years 2017-18.
Sadidiqui said that three years ago the PRA was at par with Sindh Revenue Board (SRB), however, now PRA has crossed SRA by collecting additional Rs 6 billion. PRA has planned to make a difference of Rs12 billion in collection as compared to SRB in the
Qinancial year 2017-18, Saddiqui hopped adding that PRA has achieved all this due to continuous and untiring efforts and a comprehensive strategy. “In the very Qirst place we de-centralized powers and ensured rule of law. Every commissioner, additional commissioner, assistant commissioner and other staff were given powers and targets. They worked on it and met their targets positively’, the PRA chairman explained, adding that earlier no targets and powers were assigned to the employees. The PRA chairman said that raids against tax evaders are being conducted as last resort because raids and seizures seemed to be inevitable. Answering a question about raids ce on Telenor head ofQice in Lahore, n e r e a diff e Saddiqui said PRA had intik a m n as ned to mated the company time and o n i t a l c p e l as col r n a i again but they paid no heed e n y pRA h o l i ia 2 bill financ to it, adopting casual attitude e h of Rs1 t A n t pR RB i a S h and Qinally we had to raid and o t t d d pe re ui hop seal the main ofQice. “Now compa q i o d t d e a 18, S they are ready to resolve isthis du da 2017ed all v e i h orts an sues on table and we have also c ff e g has a n de-sealed the ofQice. This was untiri egy us and o u n the only coercive action against i e strat t v i s n con e eh the party during Qinancial year compr 2016-17 as we had no other option,” he stated.
www.customsbulletin.com
Saturday, May 20, 2017
7
8
www.customsbulletin.com
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
A
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.
Agriculture economy T
LAHORE
DR AftAB AfZAL
www.customstoday.com
he agriculture sector accounts for 20 percent of the gross domestic product and employs nearly 50 percent of the labour force, but its potentials are not fully utilized. Punjab is the biggest province of the country and has lion share in the agricultural economy as well. It produces 83 percent of cotton, 80 percent of wheat, 97 percent of Qine aromatic rice, 63 percent of sugarcane and 51 percent of maize to the national food production. Punjab is also a major fruits basket as it gives 66 percent mango production, more than 95 percent citrus fruit, 82 percent guava and 34 percent dates of
the country.The agriculture sector is the largest sector of the province and a driving force for growth and development, employing over 65 percent labour force in rural areas.Punjab also has the lion share in the rice exports and produces more than 95 percent of basmati rice. The country’s rice export earning stands at $2 billion. The government concentrates on introducing more varieties of the aromatic rice to increase foreign exchange earnings. However, experts believe that the agriculture produces which are excess to the country’s needs should be exported and the nation should not be deprived of major food products. There are several other ways to enhance exports which include exports of horticulture products. The rose pro-
duction of Pakistan can bring a huge foreign exchange if properly managed. The latest trend of Saffron production needs to be encourage as KP and Gilgit-Baltistan have fertile lands suitable for the products. So far, Pakistan earns $650 million by exporting horticulture products which could be increased to billions of dollars. However, the agriculture authorities of the central and provincial governments need to work in tendon to produce not only saffron, but also Qlowers. According to experts, unless corporate sector takes interest in the agriculture sector, the desired level of progress would be hard to achieve. After achieving the provincial autonomy, the provinces have failed to prepare themselves to make prudent
industrial and agriculture policies. The population of Punjab is more than that of Turkey, Iran, Egypt and Britain, but the volume of its economy is nowhere near those countries. The provinces still look toward the federal government for help and have failed to devise their own economic policies. After the 18th Amendment to the Constitution, agriculture has become a provincial subject, but provinces are still struggling to make their own policies.The country’s share in the global horticulture exports is nearly 0.3 percent and this should be a point to ponder for the policymakers. Unless the provinces learn to live without the help of the central government, the economic situation will not be improved.
9
www.customsbulletin.com
Swiss Franc weakens amid risk appetite ZURICH: The Swiss franc dropped against its most major rivals in the European session on Tuesday amid risk appetite, as oil prices steadied and a raft of encouraging corporate earnings underpinned investor sentiment. German lender Commerzbank posted a 28% rise in first-quarter net earnings, while Zurichbased Adecco reported better-than-expected earnings for the first quarter. Oil prices were supported on expectations that an OPEC-led deal to cut output would be extended through the rest of 2017. In France, former Socialist Prime Minister Manuel Valls said he wants to sign up to President-elect Emmanuel Macron’s party to fight the parliamentary elections scheduled for June 11 and 18. Data from the State Secretariat for Economic Affairs showed that Switzerland’s unemployment rate remained stable, as expected, in April.
Dubai chamber meets with paraguay president DUBAI
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
araguay President Horacio Cartes recently announced plans to open the country’s first commercial representative office in the United Arab Emirates (UAE) later this year. Cartes met with a delegation from Dubai Chamber of Commerce and Industry and spoke of his intention to grow trade and investment between the two nations, according to an announcement. This meeting was held on the sidelines of the Global Business Forum on Latin America roadshow, which was organized by the Dubai Chamber. Cartes said that Paraguay
P
would provide any necessary resources to facilitate bilateral development. Majid Saif Al Ghurair, chairman of Dubai Chamber, led the delegation for Dubai. He provided an overview of Dubai-Paraguay relations during the meeting. Al Ghurair was joined by Hisham Abdulla Al Shirawi, 2nd vice chairman of Dubai Chamber; Hamad Buamim, president and CEO of Dubai Chamber; Essa Al Ghurair, chairman of Essa Al Ghurair Investment; Abdul Hamid Seddiqi, vice chairman of Ahmed Seddiqi & Sons; Ahmed Bin Sulayem, CEO of Dubai Multi Commodities Centre (DMCC); Dr. Juma Al Matroushi, deputy CEO, operations and client affairs, Dubai Silicon Oasis Authority; and Dr. Mohammad Al Fahim, senior vice president, corporate development, Dubai South.
Saturday May 20, 2017
Chambers
RccI promoting business activities in the region: Abdul Qadir Baloch T
RAWALPINDI
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
he closing ceremony of Qive day International Rawal Expo 2017 being organized by Rawalpindi Chamber of Commerce and Industry (RCCI) has been ended here at Topi Rakh Auditorium Ayub Park Rawalpindi,. Federal Minister for State and Frontiers (SAFRON), Lt. Gen. (r) Abdul Qadir Baloch and Tajikistan envoy Jonov Sher Ali were the chief guest on the occasion. Federal Minister Abdul Qadir Baoch appreciated the role of RCCI in promoting business activities in the region and congratulated on successful organizing of Rawal International Expo 2017. He said that Government has given many incentives to traders and industrialists. We have made zero load shedding for Industries, domestic consumption has been improved, and more mega watts of electricity has been injected to the system. Exporters got a relief package of zero rating regime and there was plenty of gas available for fertilizer and textile units, he added. The minister commended the
RCCI for organizing the event, and said expos play a vital role in boosting business activity. The law and order situation in the country has been improved and trade activities are Qlourishing. Few years back terrorism was spreading in every city of Pakistan. We must appreciate and salute the courage of our armed forces whose sacriQices brought the peace in the country again. He said democracy is the ultimate destination of economic uplift,
if we had elections after Qive years Pakistan would have been in a new shape, a prosperous one. RCCI president Raja Amer Iqbal, senior vice president Rashid Waien, vice president Asim Malik, Group leaders Sheikh Shabir Sohail Altaf, S.M Naseem, chairman Rawal expo Malik Shahid Saleem , vice chairman Khurshid Berlas members of the executive committee and a number of industrialists, business professionals and ex-
Budget proposals 2017-18: fpccI urges fBR to reduce duty on imported goods
F
KARACHI
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
ederal Board of Revenue (FBR) has been urged to reduce customs duty to zero to 3 percent on those imported goods, which are not manufactured locally. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in its budget proposals for 2017/2018 said that the duty on primary raw materials, secondary raw materials, intermediate goods, semi-Qinished goods and Qinished goods should be levied on the basis of cascading duty structure. It is proposed that the customs duty on all basic industrial raw materials, not produced locally, should be subject to0 percent to 3 percent.
Locally manufactured raw materials should be reasonably protected according to the cascading principle. The import of Qinished products should attract maximum slab of customs duty of 20 percent and at least 11 percent effective protection rate should be available to the local industry against the imported Qinished product and for this purpose regulatory duty at 5 percent to 10 percent, where necessary, be levied. The customs duty on raw materials which are locally produced, should be 11 percent to 16 percent. Meanwhile, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the Federal Board of Revenue (FBR) to reduce the requirement of record keeping to three years instead of existing six years. In its budget pro-
posals 2017/2018, the FPCCI said that the registered persons are required to retain and maintain a plethora of records under section 22 up-till 6 years that includes invoices, credit notes, debit notes, bank statements, banking instruments in terms of section 73, inventory records, utility bills, gate pass, inward and outward transportation record, salary and labour bills, rental agreement, sales purchase agreements, lease agreements etc. This has resulted that every registered person requires services of professional staff and thus increases cost of compliance. It is not possible for small and medium size businesses to afford sales tax registration or its compliance. Furthermore after introduction of detailed electronic compliance in sales tax return.
porters attended the ceremony. The minister and Tajik envoy visited various displays and commended the work of emerging entrepreneurs. In his welcome address, Raja Amer said the expo aimed to increase business activity and provide people with entertainment. He called on the government to provide a dedicated space for expos, which he said was a requirement for trade and industrial exhibition in the city.
Seminar on ‘bilateral trade between SL & uAe he National Chamber of Commerce of Sri Lanka (NCCSL) will hold a session on “Bilateral Trade between Sri Lanka and The UAE” this month. The seminar will be held on Tuesday 23 May 2017 from 3.00 to 4.30 p.m. at the National Chamber Auditorium on D R Wijewardene Mawatha in Colombo. Ambassador of United Arab Emirates to Sri Lanka Abdul Hamid AI Mulla will grace the occasion as the Special Guest Speaker. The UAE Ambassador will speak on “Current business trend, trade potential, of UAE opportunities for export and import investment and other services available in the UAE.” At the session the participants will get an opportunity to meet with the Ambassador and discuss any queries with regard to business with the UAE. –CB Report
T
10
www.customsbulletin.com
FBR issues notice to Irrigation Dept for being tax-defaulter ISLAMABAD: The Federal Board of Revenue (FBR) served a notice on the Irrigation Department for not paying excise duty. The Federal Board of Revenue issued this notice as on initial notices irrigation department did not pay any attention towards paying tax. Sources said the Department of Irrigation had to pay excise duty of Rs400million. The FBR allotted a timeframe of 15 days to submit the remaining taxes and ordered strict inquiry otherwise.
Saturday May 20, 2017
Islamabad customs Inspector Saeed granted performance allowance ISLAMABAD
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
four Assistant collectors promoted as Deputy collectors F
ISLAMABAD
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
uhammad Saeed Akhtar, a Pakistan Customs Service officer of BS-16, selected through the process of internal job posting (IJP), has been granted performance allowance. The officer, presently posted as Inspector at Model Customs Collectorate (Appraisement), Lahore, has been granted performance allowance (equivalent to 100 per cent of basic pay) with effect from May 8, 2017. According to the notification, the grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. 6(96)S(BIC)/2013-14 dated 06.03.2015 to be read with Para-10 of Finance Division’s O.M.No.1(3)/Imp/2015-360 dated 07.07.2015. The allowance will be discontinued in case prescribed terms and conditions are not fulfilled within one month from the date of issuance of this notification.
M
Superintendent Ashar Iqbal to retire on July 7 shar Iqbal Cheema, a Pakistan Customs Service officer of BS-17, is going to retire from the government service on attaining the age of superannuation. Ashar, presently posted as Superintendent at Model Customs Collectorate of Preventive, Lahore, will stand retired from the government service on July 7, 2017. Meanwhile, Shafiullah Khan Niazi, a BS-19 officer of Inland Revenue Service, has assumed the charge as Secretary. The officer, after availing extra ordinary ex-Pakistan leave vide Board’s Notification No 1862-IR-I/2012, dated 28.08.2012, took the charge of the post of Secretary at Federal Board of Revenue (HQ), Islamabad with effect from May 2017. –CB Report
A
our Pakistan Customs Service ofQicers of BS-17 has been promoted and posted against their same place of postings in next designation in their own pay and scale. Shahzad Liaqat Ranjha (BS-17) has been transferred from the post of Assistant Collector, Model Customs Collectorate of Appraisement, Lahore and posted as Deputy Collector, (OPS) Model Customs Collectorate of Appraisement, Lahore. Saqib-ur-Raihman (BS-17) has been transferred from the post of Assistant Collector, Model Customs Collectorate of Appraisement, Lahore and posted as Deputy Collector, (OPS) Model Customs Collectorate of Appraisement, Lahore. Saima Zaib Butt (BS-17) has been
transferred from the post of Assistant Director, Directorate of Internal Audit (Customs), Lahore and posted as Deputy Director, (OPS) Direc-
torate of Internal Audit (Customs), Lahore. Muhammad Asim Awan (BS17) has been transferred from the post of Assistant Collector, Model
Customs Collectorate of Preventive, Lahore and posted as Deputy Collector, (OPS) Model Customs Collectorate of Preventive, Lahore.
Islamabad dry port earns more cD in fY 2016-17 T KOHAT
tARIQ DeRYA
www.customsbulletin.com
he customs dry port Islamabad collected Rs160million customs duty during 14 days (1st to 14th May) of Financial Year FY2016-17 while it did Rs155million CD during the same period of corresponding Financial Year 2015-16. The Islamabad dry port is not running vibrant business due to strike of heavy vehicles’ transporters of Karachi. According to Amanat Khan, Assistant Collector Dry Port Islamabad, truckers’ strike is causing slowdown in reaching out the consignment to the Islamabad dry port. The strike entered the fourth. This has caused a loss of millions of rupees to the transporters. During the month of April FY16-17, the dry port collected Rs333.8million customs duty against the assigned target of Rs331m for April of Financial Year 2016-17. During the month of March FY16-17, the dry port generated Rs302.931million CD
whereas it earned Rs193.958million during the same period of FY15-16. The dry port received Rs285.837million CD during February FY16-17 while it got Rs274.561million during the same period of corresponding year.
During January 2016-17, the dry port collected Rs326.441million CD whereas it did Rs268.00million CD during the same period of FY15-16. The dry port fetched Rs307.965million CD during December FY16-17 while it did Rs270.00million CD
during the same period of FY15-16. During the month of November 1617, the dry port received Rs285.858million CD whereas it collected Rs203.940million during the same period of corresponding year 2015-16.
11
www.customsbulletin.com
ANF foils attempt of smuggling at Lahore airport LAHORE: The Anti Narcotics Force deputed at Allama Iqbal International Airport has foiled an attempt of smuggling of narcotics. Sources told Customs Today that anti narcotics force at Lahore airport during routine work intercepted a passenger Mohammad Shafi and found 3 kilo gram of heroin hidden in his luggage in very technical way. On finding heroin in luggage ANF arrested passenger Muhammad Shafi who is a resident of Sheikhpura. The market value of seized heroin is more than Rs 30 million in international market. Passenger was travelling from Lahore to Jeddah with his family and his age is 55 years. Sources said that Shafi was going to perform Umrah by PIA flight no: PK-306.
ADc warns against filing wrong values of imported vehicles KARACHI
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
dditional Collector Muhammad Ahsan Khan has said that stern action will be taken against the importers who file low values of vehicles imported under the baggage scheme. In a statement, Khan said that certain elements are involved in filing low values of vehicles in goods declarations which not only result into losses of government revenues in the forms of duty and taxes, but also a grave violation of the Section 79(I) a and b of the Customs Act, 1969. The statement was issued in the form of a notification and was released by the office of the Chief Collectorate of Customs Appraisement (South), Customs House, Karachi. Muhammad Ahsan Khan also mentioned that all concerned sections
A
and people must be informed that in case where the differences between declared and assessed value was found to be more than 30 percent, stern action, including contravention proceedings, would be initiated. According to the office memo, this order would be effected from May 10, 2017 (today). The Additional Collector, warns that any action against people found guilty for violating the Section 79(I) a and b of the Customs Act, 1969, would be held in accordance with relevant legal provisions. He mentioned that this office order was publicised with the due approval of the Chief Collector of Customs Appraisement (South), Karachi. He advised that the Colloctor, Customs Collectorate Appraisement (East and West), Customs House, Karachi and the Collector Port Muhammad Bin Qasim, Karachi should be timely informed about the recent most development to avoid any legal procedure against them.
Karachi
Dg Valuation re-determines customs values of non-dairy topping cream T
KARACHI
wAQAR AhMeD ANSARI www.customsbulletin.com
he Directorate General of Customs Valuation has revised the customs values non-dairy topping cream of different origins through Valuation Ruling No 1153/2017 under Section 25-A of the Customs Act, 1969. According to details, the customs values of non-dairy topping cream of different origins were determined vide Valuation Ruling No. 897/2016 dated 04-08-2016. Some importers requested for revision of Valuation Ruling in the light of CP No. 6918/2015. Directorate General initiated an exercise for re-determination of customs values of non-dairy topping cream afresh. A meeting was held on 04-052017 with all the stakeholders including the manufacturer of the subject goods. All stakeholders were requested to submit invoices of imports during last three months showing factual value and websites, names and E-mail addresses of known foreign suppliers of the item in question through which the actual current value can be ascertained.
Copies of Contracts made / LCs opened during the last three months showing the value of item in question as well as copies of Sales Tax invoices issued during last four months showing the differences in price (excluding duty and taxes) were also sought to substantiate that the beneQit of difference in price is passed on to the local buyers. The importers contended that the values of the subject goods were being sold in the international market on prices lower than the values determined vide Valuation Ruling No.897/2016 dated 04.08.2016.
Saturday May 20, 2017
The representative of the manufacturer on the other hand argued that the international selling prices were in fact higher and requested that the same may be veriQied by conducting local market inquiries. However, he could not submit any documentary evidence to prove his claim. The view point of all stakeholders was considered before arriving at customs values of nondairy topping /whipping cream. The Directorate General while Qinalizing values has considered the values of Palm Oil and the value addition thereon.
M/s Zohaib Ali company challenges customs values of ceramic tiles in Shc KARACHI
M B RANA
www.customsbulletin.com
/s Zohaib Ali Company and others approached the Sindh High Court (SHC), challenging enhancement and determination of customs values of ceramic and porcelain tiles over and above 12.5 percent through impugned Valuation Ruling 874/2016 dated 22/06/2016. According to the details, counsel for the M/s Rehman Trading Company, M/s Taimoor Trading Company, M/s Sara Enterprises, M/s Hassan Agencies, M/s Elysium Company, M/s Marhaba Marble & Granite Tiles, M/s Hafiz Associates, M/s Aman Ceramic, M/s M.I.S Traders. M/s International Trading Company, M/s Zohaib Ali Company and M/s Shifa Enterprises, M/s M.A.W & Company stated that petitioners are conducting lawful business of import and trade of goods having description “ceramic & porcelain tiles” and paying all liabilities properly. The counsel argued that they are aggrieved from the action of the Director General, Directorate General of Customs Valuation which initiated revision proceedings under section 25D wherein the DG having no jurisdiction has determined the customs values.
M
probe started against Nauman gul in fireworks import case
M KARACHI
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
odel Customs Collectorate (MCC) Appraisement-West, MCC Port Qasim and MCC Peshawar have initiated joint investigations into the affairs of Nauman Gul alias Nomi and his associates in the case of illegal import of Qireworks and explosive material through mis-declaration. According to details, one company M/s Iqra International was importing Qireworks and other contrabands and declaring the goods as tiles and other miscellaneous goods. They used to Qile transshipment
(TP) for different dry ports and the Qireworks were either replaced during transit or the consignment was cleared through mis-declaration. However, the crime was detected and FIR was lodged against several persons including Nomi and Sajid Hussain. Soon after that, another company M/s Dua Enterprises was found to be importing contraband Qireworks in the same manner as M/s Iqra International. An FIR has also been lodged against M/s Dua Enterprises and Nauman Gul alias Nomi is also nominated in this FIR. M/s Iqra International imported six consignments during June-July of 2016 and Qiled TP for all these consignments. Interestingly, M/s
Port Connections was the bonded carrier of all these consignments. It may be mentioned here that M/s Port Connection is nominated in numerous FIRs pertaining to pilferage of US Army cargo, Afghan transit cargo and replacement of TP consignments. It is known that the accused Nomi and his associates have got many companies registered and they are used for wrongdoings. M/s Dua Enterprises is one such company, which Qiled 20 GDs at MCC Appraisement West in March-April 2017 and Qiled four GDs at MCC Port Qasim during April 2017. Prior to this, there was no record of M/s Due Enterprises. Investigations into this abnormal pattern of imports led to
detection of the scam that M/s Dua Enterprises was also a company of Nomi and was involved in illegal import of contraband goods. Customs authorities have initiated investigation into the matter, which has become a high profile case. It may be mentioned here the accused used to file complaints with NAB and FBR against the officers investigating the case with a view to pressurize them. Deputy Collector Athar Naveed prepared a detailed report that the accused were using harassment tactics to divert Customs attention away from them. This report was forwarded to FBR by Collector Qurban Ali Khan.
12
www.customsbulletin.com
Bangladesh Petroleum seeks up to 1.06mt oil products Saturday May 20, 2017
World
DHAKA: Bangladesh Petroleum Corp is seeking up to 1.06 million tonnes (mt) of gasoil, jet fuel and high sulphur fuel oil, a tender document showed on Friday. The state-owned company is seeking 680,000 to 860,000 tonnes of 500ppm sulphur gasoil, 100,000 tonnes of jet fuel and 80,000 to 100,000 tonnes of 180-cst high sulphur fuel oil. The tender closes on May and is valid until July 29. The tender did not indicate delivery period but the cargoes are likely for delivery into Bangladesh in the second half of this year, a Singapore-based trader said. BPC officials could not be reached immediately for comment.
terengganu customs tightens MfB signs euR 79m credit pact with chinese peer security measures BUDAPEST
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
TERENGGANU
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
T
T
he Terengganu Royal Malaysian Customs Department will continue tightening its security system at the airport to prevent the smuggling of prohibited goods here through air routes. Its director Aidid Tajuddin said attention was given to various aspects including tighter surveillance and physical checks on suspicious passengers. He said the department would also station uniformed and special tactical staff near the scanning machines. “We are taking these measures to stop smuggling of prohibited items including drugs through domestic airports,” he said. “We do not want them to take advantage by using other routes especially state airports to bring in smuggled goods into the country,”
Bangladesh loses uSD 6-9b to illicit financial outflows s per the latest Global Financial Integrity report, Bangladesh has lost between USD 6 to 9 billion to illicit financial outflows in 2014. This is roughly enough to build three Padma bridges. The loss of USD 75 billion between 2005 and 2014 would cover the entire fiscal budget for Bangladesh twice. It is extremely disheartening to witness these events at a time when there is little foreign direct investment, with the wealthy transferring their capital out of the country instead of investing in Bangladesh. Bangladesh is enjoying the extra benefits of population dividend or population bonus, i.e. when working age (15-64) population is much more than dependent population (0-14 &64+). Of our 10 crore (60 percent) working age population, 25 percent are unemployed, and 2 million youth are entering the job market every year. –CB Report
A
he told press. He said the initiative was taken after the department seized ketamine drugs weighing 10 kilogrammes worth about RM700,000 at the Sultan Mahmud Airport. Meanwhile, Malaysia’s export growth likely slowed in March, though it will still be strong on the
back of improving shipments to major trade partners, economists said. Exports likely rose 20.5% in March from a year earlier, according to the median forecast from a poll of seven economists. That compares with February’s 26.5% rise–the fastest annual pace in nearly seven years and January’s 13.6% increase.
erste group books Q1 net income of euR 27.8 million in hungary
T
he Austrian Erste Group booked Qirst-quarter net income of EUR 27.8 million at its business in Hungary, after making a small loss in the base period, an earnings report released today shows, as reported by Hungarian news agency MTI. Earnings were lifted by the lower bank levy and a release of provisions Erste Bank Hungary paid EUR 23.6 mln on the bank levy during the Qirst quarter, down from EUR 26.9 mln in the
equivalent period a year earlier. The lender booked a EUR 22.4 mln provisions release, up 59% from the base period. Net interest income rose 2% to EUR 46.7 mln. Net revenue from commissions and fees climbed 13% to EUR 37.3 mln. Erste Group attributed the rise to higher card and distribution fees in the retail segment, supported by Erste Bank Hungary?s acquisition of the former retail portfolio of Citibank. –CB Report
he state-owned Hungarian Development Bank (MFB) and the China Development Bank (CDB) signed an international credit agreement valued at EUR 79 million on the sidelines of the One Belt, One Road forum in Beijing, according to a press statement sent to the Budapest Business Journal. Under the agreement signed by the two banks, MFB will lend the money to Hungarian chemicals company BorsodChem for environmental investments. CDB will reQinance the loan given to the company, which is owned by China s Wanhua Group. MFB described the agreement as “signiQicant” as it is the “Qirst international credit agreement” the CDB has signed with a partner operating in a European Union member state. MFB added that the agreement may
M
pave the way for similar agreements in the future. Meanwhile, Parliament on Tuesday passed a law amendment setting the rate of advertisement tax at 7.5 percent from the second half of 2017. The levy will apply to companies with revenue exceeding a net amount of 100 million forints (EUR 320,000) from July 1, 2017. The bill submitted by the economy minister was passed with 117 votes in favour and 58 against. Hungary introduced the graduated tax, with rates ranging from 0 percent to 50 percent, in June 2014. The European Commission launched an in-depth investigation into the matter in March 2015 and asked Hungary to suspend application of the tax. The commission in a resolution dated November 4, 2016, found the tax incompatible with European Union rules and ordered Hungary to recover taxes from companies that enjoyed an unfair advantage. The government appealed the decision and turned to the European Court of Justice to seek legal remedy.
Smuggled cigarettes seized in oman
ore than 800 boxes of cigarettes were found in a truck in a smuggling attempt, the police announced. The Royal Oman Police foiled the smuggling attempt of an Asian national, driving a truck and trailer vehicle, according to an online statement. The truck held more than 800 boxes of cigarettes, as as well as 300 boxes of chewing tobacco, which weighed about 6,200 kg. The smuggled boxes were hidden by other goods that the truck was transporting. Meanwhile, Wuhan Xiao Long Automotive Technologies Co. Ltd,
which signed a land lease agreement with Oman Wanfang last week, plans to start work on a high-mobility special utility vehicle (SUV) project in Duqm free zone within two months. The company plans to design the plant before starting construction of the first phase, which will have a capital expenditure of $84 million. The Chinese company last week signed a land lease (subusufruct) deal with Oman Wanfang, which is managing 1,172 hectares of land for developing a major China-Oman industrial zone in Duqm. –CB Report
MofALD proposes Rs 387b grant for local bodies
A
KHATMADU
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
total grant of Rs 387 billion has been proposed for local units for the Qiscal budget 2017-18. The Ministry of Federal Affairs and Local Development has Qinalised the grant requirement for 744 local bodies four metropolitan
cities, 13 sub-metropolitan cities, 246 municipalities and 481 rural municipalities and forwarded it to the Ministry of Finance to allocate resources accordingly, according to Dinesh Kumar Thapaliya, MoFALD secretary. The Natural Resources and Financial Commission an independent commission envisioned by the constitution is supposed to Qinalise the grant amount. However,
MoFALD has Qinalised the grant amount for the local bodies for this transitional period in the absence of the commission. The government has yet to frame the bill for the commission and table it at the Parliament. According to Secretary Thapaliya, Rs 232 billion will be required for conditional grant. This grant is a sectoral grant and must be spent under the given headings,
such as education, health and roads. As the 744 local bodies are going to start functioning after the election of local bodies, Rs 25 billion will be provided as administrative grant, which will be spent on salaries and allowances of staffers and elected representatives. As the social security allowance will also be distributed from the local units, a total of Rs 35 billion.
13
www.customsbulletin.com
Egypt’s increased fish export tax leaves Jordan on the hook
World Customs
AMMAN: The recent decision by Egypt to impose a 12,000 Egyptian pound fee (JD472.8) on each tonne of exported fish will have dire consequences for the local Jordanian market, according to a food expert. In a recent move, Egyptian authorities decided to impose taxes on the country’s fish exports for several months, in a bid to balance the hike in the commodity’s prices following an increase in the volume of fish exports. “The decision includes Jordan, which imports fresh and saltwater fish from Egypt. The new move will increase prices of Egyptian fish, which constitute 30 per cent of the fish in the local market, by 15 to 30 per cent,” Foodstuff Traders Association President Khalil Haj Tawfiq told The Jordan Times.
Iraq exempts Jordanian products from customs ordanian Industry Minister Ya’rub al-Qudhat announced that agreement was reached with the Iraqi authorities to exempt Jordanian products from customs. The Jordanian side will provide Iraq with the total capacities of the Jordanian factories by next May, 2017, he added.”Jordan will abide with the Iraqi agricultural calendar in the supply of agricultural products”, the minister elaborated. Meanwhile, Iraqi Vice President Osama al-Nujaifi said the humanitarian situation in Mosul has reached a “catastrophic point” as Iraqi forces engage in clashes with Islamic State (ISIS) militants in western Mosul. “The situation is catastrophic amid famine and lack of food and medicine, which make the city live an unbearable situation,” al-Nujaifi told a party meeting late. Some 400,000 civilians remain trapped inside the denselypopulated Old City where street battles have raged for weeks. –CB Report
Iranian coast guards seizes 700kg heroin en route to Jordan
he Ministry of Agriculture, Irrigation and Livestock (MAIL) are to build 248 cold storage facilities, with the capacity of storing up to 50,000 tons of agricultural products, across the country. The project will cost at least $40 million USD and will come from the ministry’s development budget, said Ahmad Shekib Omar, the MAIL’s project manager of cold storage facilities. He said that eight of the cold storage facilities would have a particularly large capacity of a total 40,000 tons and the project would take two years. “Eight cold storage facilities will be built in six provinces including Kabul, Kandahar, Kunduz, Balkh, Herat and Nangarhar in order to keep agricultural products of these provinces (fresh),” Omar added. –CB Report
T
MofALD proposes Rs 387 billion grant for local bodies total grant of Rs 387 billion has been proposed for local units for the fiscal budget 2017-18. The Ministry of Federal Affairs and Local Development has finalised the grant requirement for 744 local bodies four metropolitan cities, 13 submetropolitan cities, 246 municipalities and 481 rural municipalities and forwarded it to the Ministry of Finance to allocate resources accordingly, according to Dinesh Kumar Thapaliya, MoFALD secretary. The Natural Resources and Financial Commission an independent commission envisioned by the constitution is supposed to finalise the grant amount. However, MoFALD has finalised the grant amount for the local bodies for this transitional period in the absence of the commission. The government has yet to frame the bill for the commission and table it at the Parliament. According to Secretary Thapaliya, Rs 232 billion will be required for conditional grant. This grant is a sectoral grant and must be spent under the given headings, such as education, health and roads. As the 744 local bodies are going to start functioning after the election of local bodies, Rs 25 billion will be provided as administrative grant, which will be spent on salaries and allowances of staffers and elected representatives. –CB Report
A
J
Mail to build 248 cold storage facilities across country
Saturday May 20, 2017
AMMON
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
I
ranian coast guards managed to seize nearly 700 kilograms of heroin en route to Jordan, the commander of the border guard headquarters of the southeastern province of Sistan and Balouchestan announced. In a successful operation after intense intelligence work, the brave coast guards thwarted a sinister scheme by smugglers to transit the illicit drugs from Bandar Abbas to Jordan by a ship and a boat,
Brigadier General Saeed Komeili said. The coast guards managed to seize more than 685 kilograms of heroin and 150,000 liters of smuggled fuel in waters off the coasts of Makran in Sistan and Balouchestan, the commander noted. He added that 10 smugglers were arrested and the two vessels were conQiscated in the operation. Iran, which has a 900-kilometer common border with Afghanistan, has been used as the main conduit for smuggling Afghan drugs to narcotics kingpins in Europe. Despite high economic and human costs, the Islamic Republic has been actively Qighting drug-trafQicking over the past three decades. The country has spent
more than $700 million on sealing its borders and preventing the transit of narcotics destined for European, Arab and Central Asian countries. The war on drug trade originating from Afghanistan has claimed the lives of nearly 4,000 Iranian police ofQicers over the past four decades. Meanwhile, Two antismuggling personnel of the Customs Department were injured on Saturday when their vehicle overturned while chasing a car with contraband near Aqaba, the department said. OfQicial spokesman Col. Imad Nseir said a customs patrol chased the “suspicious” car, which was coming from Aqaba, after its driver refused an order to halt.
Record haul of pangolin scales seized in Malaysia
M
KUALA LUMPUR
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
alaysia has seized more than US$2 million worth of scales from pangolins, the world’s most poached animal, at Kuala Lumpur airport in the largest haul seen in the country, ofQicials said. Customs ofQicials acting on a tipoff discovered 712 kilogram (1,570 lb) of scales at the airport’s cargo warehouse, where they had been shipped in 18 sacks using false doc-
uments, Customs Department assistant director-general Paddy Abdul Halim said. Wildlife and National Parks Department deputy director of enforcement Rozidan Md Yasin said an estimated 1,400 pangolins had been killed to produce the amount of scales seized. Malaysia has previously been singled out by wildlife conservationists as a transit point for the illegal trafQicking of endangered species to other Asian countries. The scales were shipped from Africa in two separate shipments, Paddy said. The Qirst
shipment from Accra, Ghana had been sent to Malaysia via Dubai, United Arab Emirates on an Emirates Airlines Qlight. The second was sent from Kinshaha, Congo on Kenya Airways to Nairobi, Kenya, where it was then transferred to an Emirates Airlines Qlight and shipped to Malaysia via Dubai. “We are still investigating whether the two shipments are linked,” he told a press conference. No suspects had been detained and it was still unclear whether Malaysia was the Qinal destination for the scales as no recipients could be
traced. Pangolin scales shipped to Malaysia were usually sent on to Vietnam and China, Rozidan said. The value of pangolin scales varied according to region but could fetch up to 1,500 ringgit (266.77 pounds) a kilogram on the Malaysian black market, he added. Global trade in pangolin scales is banned under a U.N. convention, but they are prized in some Asian countries for use in traditional medicines. Last month, Thai authorities seized nearly three tonnes of pangolin scales from Africa at Bangkok’s Suvarnabhumi Airport.
14
www.customsbulletin.com
Illegal kidney transplant: accused remanded to FIA custody Saturday May 20, 2017
Lahore
LAHORE: A local court has handed over an accused Abdul Majeed involved in illegal kidney transplant scam to Federal Investigation Agency (FIA) on a three days physical remand. Earlier, the FIA official produced the accused before Judicial Magistrate Farooq-e-Azam and sought physical remand of the accused for interrogation. They further submitted that the accused was responsible for connecting foreign patients seeking kidney transplants with the already arrested suspects Dr Fawad, Dr Altamash and others. At this, the court handed over the accused to FIA on a three days remand and directed to produce him again on expiry of the remand term.
fto hears case file by M/s Qaiser packages against Rto-II
pcA detects for tax evasion of Rs567615 by M/s IoSo Int’l
LAHORE
www.customsbulletin.com
SAJID NAwAZ
www.customsbulletin.com
T
he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Qiled by proprietor of M/s Qaiser Packages against the Regional Tax OfQice-II (RTO-II), Lahore until the next date. FTO Advisor Tariq Yousaf heard the case of Ghulam Qaiser, proprietor of Qaiser Packages, in which the counsel for the appellant argued that the RTO has not released the refund to the appellant of the last three years. He said that the RTO collected excessive tax from the company during the last three years. The company approached the ofQicer concerned many times for issuance of the refunds but the department did not pay the refunds
Lhc adjourns fBR employee’s pension case for one week he Lahore High Court (LHC) sought a reply from the Federal Board of Revenue’s authority concerned in a pension case filed by a retired FBR employee. Justice Shams Mehmood Mirza heard the case filed by Shahid Ali in which counsel for appellant Mubeen Ahmed Sabri appeared before the court and argued that his client has completed his service in the Federal Board of Revenue (FBR). He has performed his services honestly but the FBR failed to release his pension. He prayed the court that the LHC should order the Federal Board of Revenue (FBR) to release pending dues to the appellant. After hearing the arguments from appellant, the Lahore High Court (LHC) has issued a notice to the FBR and sought the reply from the department and also adjourned the court for one week. –CB Report
T
after the passage of reasonable time. Finally, the appellant decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the RTO should make audit of the cases and release the extra amount collected from it from the taxpayer. On the other hand, counsel for RTO argued that the appellant has not submitted all record in the ofQice on which basis it is claiming for refunds. If appellant provides accurate record, the RTO will issue the refunds after proper assessment, he added. After hearing the arguments from both sides, Advisor Tariq Yousaf adjourned the case until next date for further hearing and directed the parties to appear on said date to present arguments in the case.
LAHORE
M hAYAt
D
Directorate of Customs Post Clarence Audit (PCA) has summoned M/s IOSO International in duty and tax evasion of Rs567615 on the import of tarpaulin. According to the details, the PCA Lahore observed that the import clearances data against HS Code 6306.1210 effected from various Model Customs Collectorate during the calendar years. 2012 and 2013 revealed that inadmissible concession of sales tax and value added sales tax under the SRO 1125()/2011 dated 31.12.2011, wrongfully availed on the import of Tarpaulin i.e. sun shedding which is speciQically excluded from that ambit of said SRO and hence was not entitled for such beneQit under the said SRO. It has been observed
that importer had imported various consignments consisting of Tarpaul and got it cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/201 1, dated 31.12.2011. Hence, it was said that the importers have short paid an amount Rs 567615 sales
T
tax, additional sales tax and income tax due to wrongful, concession under the SRO I 125(D/2011 dated 31.12.2011. The importer was asked to pay above mentioned short paid amount of duty/ taxes within 10 days of receipt of this letter positively.
pRA earns Rs64b record high revenue customs tribunal hears 15 cases he Customs Appellate Tri- sus Rudolf Pakistan, Customs from telecom sector in 10 months bunal’s Division Bench-II (sin- Faisalabad versus J.K Spinning,
T
he Punjab Revenue Authority collected the record high revenue in the Qirst 10 months of the Qiscal year of 2016-17 from telecommunications and 61 other sectors, especially from restaurant and fashion industries. According to sources of Customs Today, the Punjab Revenue Authority has marked a new high Qigure in recoveries from different sectors with an amount of Rs64billion. This amount is 34 percent more than the amount of the same period of the Qis-
cal year of 2015 16. The authority has also recovered a huge amount of taxes in 10 months against their annual target of Rs84billion for the Qiscal year of 2016 17. Chairman Raheel Sadiqui congratulated the ofQicers and staff of the Punjab Revenue Authority (PRA) on setting a new record of revenue collection. On contacting the PRA chairman ofQice, Customs Today was informed that this is the highest collection ever recorded by any tax collection agency at sub-national level in a period of 10 months. –CB Report
gle and double), comprising Judicial Member Omer Arshad Hakeem and Member Technical Imran Tariq, heard 15 cases and adjourned all of them till the next hearings. A single bench of the Customs Appellate Tribunal, comprising Imran Tariq, heard seven cases of Customs Lahore versus Kaleem Saleem, Directorate Post Clearance Audit (PCA) Lahore versus Bristol Mayor, Directorate of Intelligence and Investigation Lahore versus Al Hussain Trading, Directorate Post Clearance Audit (PCA) Lahore ver-
Mukhtar Ahmed versus Customs Faisalabad and Muhammad Hussain versus customs Faisalabad. On Tuesday, the tribunal division bench-II had heard eight cases of Customs Sambrial versus Nawab Zada Haider, Al Rehman Fabrics versus Directorate of Intelligence and Investigation Faisalabad, Customs Faisalabad versus Kamal Textile and Customs Faisalabad versus Sweety Textile. Furthermore, the tribunal heard Juma Khan versus Directorate of Intelligence and Investigation Multan. –CB Report
customs tribunal rejects appeal filed by Sakhawat Ali
T
LAHORE
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
he customs appellate tribunal has rejected an appeal Qiled by Sakhawat Ali, a resident of Gujranwala, against the Superintendent, Directorate of Intelligence and Investigation-FBR, Gujranwala and collector of customs (Adjudication),
customs House Lahore. Imran Tariq, Member Technical Bench-II, after examining the record and hearing arguments, passed the judgment that the adjudication order is up to the mark and appeal is devoid of merit and unaccepted. Following the information, the staff of intelligence and investigationFBR Gujranwala intercepted a trailer loaded with foreign origin used iron
and steel pipes. On demand, the driver produced a copy of GD No regarding the legal import and a bilty issued by the goods transport company. After the complete examination, goods were seized under Section 2(KK) read with Section 17 of the Customs Act-1969. After a show cause notice, adjudication authority passed the order-in-original that seized goods are released to its law-
ful owner on the payment of redemption Qine which is equal to 35 percent of the value of conQiscated foods as determined by the department. Being aggrieved from the order, the appellant Qiled the case before the customs appellate tribunal on the grounds that the order passed by the adjudication authority is baseless, illegal and unlawful hence is liable to be dismissed.
15
www.customsbulletin.com
Five ships take berth at Port Qasim KARACHI: Five ships Maersk Hartford, Xpress Kailash, MSC Alghero, Chongming and Formosa Falcon carrying containers, G.Cargo and Gas Oil took berths at Qasim International Container Terminal, Multi Purpose Terminal and FOTCO Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA) here on Wednesday. Berth occupancy was observed at the port at 55% on Tuesday where a total of seven ships were occupied PQA berths to load/offload Containers, Palm oil, G.Cargo, Soya Bean and Diesel oil respectively. Cargo handling remained upward trend at the port where a cargo volume of 113804 tonnes, comprising 103829 tonnes import cargo and 9975 tonnes export cargo inclusive of containerized cargo carried in 2859 containers.
Sc ports announces strongest on record for container cargo outh Carolina Ports Authority announced its strongest April container volumes on record, with 189,315 twenty foot-equivalent units (TEUs) handled last month. In addition to being the strongest April in SCPA history, last month’s volumes were the secondhighest ever handled by the Port. Nearly 1.8 million TEUs have moved across the docks of SCPA’s two container terminals since the 2017 fiscal year began last July, pushing fiscal year-to-date volume 10.2 percent higher than the same period last year. “The strength of April volumes on the heels of our all-time highest month in March puts SCPA in a good position to meet or exceed our planned fiscal year container volume increase of six percent,” said
S
Jim Newsome, SCPA president and CEO. “We’re seeing broad-based growth with a healthy balance of imports and exports, and it is clear that our cargo development efforts are paying off as we continue handling more volume than ever before. We are excited to welcome the COSCO Development this weekend, the first 13,000 TEU vessel to call Charleston.” As measured in pier containers, or boxes handled, SCPA moved 107,340 containers in April. The Port has handled 1 million containers since July, a growth of 10.3 percent over the same fiscal period last year. Fiscal year-to-date tonnage of non-containerized cargo in Charleston reached 689,220 tons in April, with 54,426 breakbulk tons moved last month. –CB Report
Ports & Shipping
Nigerian ports cannot be world-class overnight WASHINGTON
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
I
t was unexpected and shocking for many key stakeholders in the maritime sector to hear from the Minister of Transport, Rotimi Amaechi that the Nigerian ports cannot assume the rating of worldclass soon, even as the shipping business continued to face series of Qiscal and infrastructural challenges. The fact is that the issues around the maritime sector operations are too numerous to combat within a twinkle of an eye, but stakeholders insist on the need for a quick Qix in order to save the multi-billion dollars investment by terminal operators and clearing agents among others from going moribund. Nigerian ports may remain very uncompetitive for some more time, if they further experience sluggish infrastructure growth and slow ratiQication of Qiscal policies. Amaechi, who spoke recently on fast-tracking ports reforms with the theme: “Mak-
ing Nigerian seaports world class,” said: “We promised change. Change is not talked about it is felt, that is why we say please give us time; we did not cause recession but you must give us time to Qix it. “Turning our ports to world class standard will not happen now, it will take time but we must start from somewhere.” He explained that since inception of the current administration, the goal of government in the reformation of the maritime sector is to provide an en-
abling environment for the modernisation and expansion of the existing infrastructure. The Executive Secretary, of Nigerian Shippers Council, Hassan Bello, at a stakeholders’ forum in Lagos, said the ports access roads are all in a very poor condition, hence the need for government to declare emergency on the roads. Bello said: “If you rate our ports based on some key performance indicators, you will discover that they are also not doing well.
Saturday May 20, 2017
cargo traffic at 12 major ports up 6 percent oosted by a surge in demand, India’s 12 major ports saw cargo traffic increase by 6.27% to 55.75 million tonnes (MT) in April, the first month of the current fiscal. These top ports under the centre had handled 52.46 MT cargo in April 2016. Increased demand from sectors like iron ore, coking coal and container traffic resulted in higher movement of cargo last month to 55.75 MT, as per the Indian Ports Association. Iron ore traffic volumes were up 40% to 5.37 MT during the month as against 3.82 MT in April 2016 while coking coal volumes surged by 15% to 4.61 MT. Container traffic was up 9.78% to 7 lakh TEUs (twenty food equivalent units) while POL (petroleum, oil and lubricants) volumes too surged by 7%. Kandla port handled the highest traffic volume at 9.32 MT during April this year followed by Paradip Port at 7.33 MT, JNPT Port at 5.75 MT, Mumbai at 5.33 MT and Visakhapatnam at 4.92 MT, the data revealed. Kolkata Port including Haldia handled 4.23 MT of cargo while Chennai port handled 3.93 MT of cargo. –CB Report
B
philadelphia port sees growth in cargo imports C
WASHINGTON
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
ontainerized freight in 20- and 40-foot boxes was up 28 percent in the Philadelphia port in April compared with the same month a year ago, port ofQicials said. The U.S. import boom continued in April, with seaborne tonnage volumes up 8.9 percent from a year earlier in the nation’s ports. Container cargo imports were up 8.7 percent in March, said a report by the research Qirm Panjiva. “The standout performance among the smaller ports was from Philadelphia,” said Christopher Rogers, an analyst with Panjiva. The container increases, attributable to several new shipping services at Packer Avenue Marine Terminal, have pushed the Philadelphia port’s national ranking up to No. 12, just ahead of Miami and below Port Everglades, in
Fort Lauderdale, Fla. Philadelphia handled 49,000 20foot equivalent units (TEUs), a standard measure for container cargo, in April, compared with 38,800 in April 2016. “Our growth rate is a leader of the pack,” said Jeffrey Theobald, chief executive ofQicer of the Philadelphia Regional Port Authority, which owns 15 piers and terminals on the Delaware River. With the long-awaited Panama Canal expansion completed, Mediterranean Shipping Co. (MSC) last August began a weekly freight route to Philadelphia, hauling grapes, blueberries, other various fruits, and cargoes from Chile, Peru, and Ecuador, said Eric Holt, whose family runs Packer marine terminal. The MSC ships sail through the larger set of Panama Canal locks. They are the largest cargo ships ever to come up the Delaware River. In January, the fruit company Fyffes be-
gan shipping bananas, plantains, and pineapples to Packer terminal from Costa Rica, Columbia, and Guatemala. The business on SeaLand, a carrier of the Maersk Group, prompted other distributors, including Walmart, to begin shipping their fresh produce here as well, Holt said. Since February 2016, a new ocean route from the Gulf of Mexico has brought containers directly to Philadelphia carrying Samsung dishwashers and refrigerators, sugar, and Corona beer. “Generally speaking, the East Coast ports did best, with Savannah reporting 19.4 percent growth compared to a year earlier and Norfolk up 14.6 percent” in April, the report said. “The main losers were the Puget Sound ports of Seattle and Tacoma,” whose cargo volumes fell 1 percent, and New Orleans, which shrank by 21.3 percent. The nation’s largest port for container handling is Los Angeles-
Long Beach, in California, followed by the Port of New York which is expected to see accelerated growth later this year when the Bayonne Bridge raising project is completed and the port can handle vessels up to 18,000 TEUs from 9,800 TEUs previously. In the last 12 months, the Philadelphia port handled container volumes of 185,560 TEUs compared with 150,443 for the same period in 2016 a 23 percent increase, the port authority said. The Packer Avenue terminal handled 27,300 lifts in April, up from 22,793 lifts a year earlier, Holt said. A lift is the taking off or putting on of a ship container and is a different measure from cargo tonnage. In April, another new shipping service to Packer terminal began with Hapag-Lloyd, Germany’s top container line, and four Asian carriers that formed a vessel-sharing alliance.
16
www.customsbulletin.com
Faisalabad Adjudication hears 51 smuggling cases involving Rs152.63m FAISALABAD: The Customs Collectorate of Adjudication had adjourned the hearing of 51 seizure cases worth Rs152.63 million during the month. Sources told Customs Today, that Customs Adjudication Collector Mubashir Baig has adjourned the hearing of eight cases worth Rs72.235 million pertaining to the seizures of various items. The cases were made by customs authorities. The collector directed the owners of seized goods and their counsels to conclude their arguments in next hearing.
Saturday, May 20, 2017
CUSTOMS BULLETIN
Dg Valuation revises customs values of vinyl acetate monomer, oxalic acid KARACHI wAQAR AhMeD ANSARI www.customsbulletin.com
T
he Directorate General of Customs Valuation has revised the customs values of vinyl acetate monomer, oxalic acid and potassium chlorate vide Valuation Ruling No 1159/2017 under Section 25-A of the Customs Act, 1969. According to details, the customs values of vinyl acetate monomer, oxalic acid and potassium chlorate were earlier determined vide VDB No.67/2016 dated, 21-10-2016, No.131/2016 dated, 20-12-2016 and No.65/2016 dated, 21-10-2016 respectively. Representations were received from commercial importers and Pakistan Chemical and Dyes Merchant Association (PCDMA) that the value of the subject chemicals are showing downward trend therefore they requested for determination of customs value of Vinyl Acetate Monomer, Oxalic Acid and Potassium Chlorate, afresh. Meeting with all the stakeholders including importers, Pakistan Chemical and Dyes Merchant Association (PCDMA) and representatives from clearance Collectorates, was held on
02-03-2017 & 09-03-2017, to discuss the current international prices of the subject items. The commercial importers stated that the prices of subject items are showing down ward trend in the international mar-
kets which was duly supported by the (PCDMA). The view point of all participants was heard in detail and considered to arrive at Customs value of Vinyl Acetate Monomer, Oxalic Acid and Potassium Chlorate.
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 pro-
vided in Sub-Section (1) of Section 25, found inapplicable in light of the wide variety of invoices submitted at import stage the veracity of which could not be ascertained fully, hence requisite information required.
Shc seeks explanation in Indian fabric case KARACHI
cuStoMS BuLLetIN RepoRt www.customsbulletin.com
S
indh High Court (SHC) has ordered Collector Customs to submit an explanation that why the consignment in dispute was not moved to the Common Pool Fund. A division bench of Sindh High Court (SHC) comprising Justice Munib Akhtar and Justice Arshad Hussain. The bench was hearing a
constitution petition Qiled by Horizon International which imported Grey Fabric from Dubai and Qiled a GD claiming it to be of Chinese origin. The Customs disputed the origin and termed the consignment to be of Indian origin on the basis of data collection. The custom maintained that no company in China manufacture grey cloth. Earlier a lawyer representing law Qirm Franklin Law Associates representing the petitioner company maintained that order of the high court regarding shifting of the consignment to CPF bond. He said that so far demurrages worth ru-
pees 12 Crore have been accumulated. He said that only a day before the date of hearing, Customs issued a letter for complying with the orders of the SHC. The bench expressed anger over deQiance of its order passed on previous date while seeking explanation deferred further proceedings till May 31.and asked a report that why consignment in dispute was not shifted to Common Pool Fund Bonded Ware House. The bench was hearing a constitution petition Qiled by Horizon International which imported Grey Fabric from Dubai. The bench also
said that when apex court remanded back the case and when the allegation of Indian origin are not proved, the case must have been decided by the respondent Custom ofQicials. Meanwhile, The Sindh High Court (SHC) has sought comments from tax authorities on a constitutional petition Qiled by M/s SP (Private) Limited, seeking release of all equipment and other accessories seized by ofQicials of the Intelligence & Investigation Inland Revenue during a raid. A twomember bench, headed by Justice Aqeel Ahmed Abbasi, was hearing
Published by M S Raza O# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,o I.I. Chundrigar Road, Karachi
the petition. Earlier, counsel for the petitioner stated that it is engaged in the business of manufacturing of corrugated cartons and boxes/ paper and paperboard having business nature of manufacturing/ importer/ exporter and wholesaler. He argued that officials of the Intelligence and Investigation Inland Revenue raid the premises of the petitioner and took away all computers, files, bank statements, file, vouchers and other documents without disclosing any reason or issuing any show cause notice.