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Karachi, Tue May 23, 2017
MULTAN
IMRAN ALI
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he Customs Collectorate has collected Rs3162.038 millions revenue during the Pirst twenty days of May during the on-going Piscal year 2016-17. Sources told Customs Today that the Collectorate of Multan Customs collected Rs772.203
million under the head of customs duty from 1st May to 20th May. On the other side, Federal Board of Revenue has allotted customs duty revenue collection target of Rs903.480 million to Multan Customs Collectorate for the month of May. The Customs Collectorate has attained 85% of the assigned revenue collection target of customs duty during the Pirst 20 days of May. Multan Customs is tackling with huge collection task of customs duty and Collectorate has managed to collect their
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major part during the Pirst 20 days and remaining customs duty will be collected in the remaining days of the month. The Customs Collectorate has made collection of Rs2375.717 million in the first 20 days of May. The Federal Board of Revenue has set the sales tax collection target of Rs4451 million in the first 20 days for the May. Multan Customs is facing shortfall in the revenue collection of sales tax reduced collection in the sales taxes due to decrease in the import clearances at the Multan Dry Port. The collection of sales taxes at the Multan Customs Collectorate is also facing constant decline due to drop in the clearances of HSD products from Multan Dry Port.
Peshawar customs performance satisfactory during 15 days of May 2016-17
Govt working on energy projects to meet growing demand: Dastagir
People with no connectivity to get 3G by end of 2018: Anusha
Chief Collector Zeba Azhar t o preside over collectors’ moot
DG Valuation revises customs values of shade net vide VR No 1160/2017
The MCC Peshawar earned Rs 629.29m duty and taxes during 1st to 15th of May | See pAge 02 |
Dastagir has said that present govet was working on many energy projects to meet | See pAge 03 |
Anusha Rehman has said people with no connectivity will get 3G by the end of 2018 | See pAge 04 |
Chief Collector Region Zeba Azhar is going to hold Collectors Conference | See pAge 14 |
The DG of CustomsValuation has revised the customs values of shade net HDPE | See pAge 16 |
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Peshawar Customs seizes 215 bags of smuggled tea Tuesday, May 23, 2017
National
PESHAWAR: Customs oďŹƒcials have seized a large quantity of smuggled Kenyan tea and arrested two alleged smugglers. A raiding team, constituted on the direction of Peshawar Director I&I Mohammad Saleem, intercepted a truck with assistance of Nowshera Police and found 215 bags of black tea of Kenyan origin. An FIR has been lodged and two persons have been arrested. Further investigation is underway to arrest the smuggling network. It is worth mentioning that smuggling of food items from Afghanistan has increased on the eve of holy month of Ramazan.
peshawar customs performance satisfactory in 15 days of May
Quetta customs seizes huge quantity of narcotics QUETTA
ISLAMABAD
tARIQ DeRYA
SAJID NAwAZ
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irectorate General of Customs Intelligence and Investigations during its crackdown against smugglers seized huge quantity of narcotics and plastic granules. The customs team also recovered non customs paid moulding machine. Sources told Customs Today that Deputy Collector Customs Preventive Junaid Mehmood received credible information that some smugglers are trying to smuggle huge quantity of narcotics under the cover of fishes. He immediately constituted a raiding team. The team enhanced vigilance in the area and intercepted a truck bearing registration no: SB-2358 and recovered of twelve kilograms of smuggled narcotics which were tactfully hidden in the sacks. The market value of seized narcotics is Rs1.3 million. The customs team arrested the driver of the vehicle and registered a case of narcotics against the driver of the vehicle and started investigations. During another crackdown the Customs Quetta team seized huge quantity of non duty paid plastic granules from the godown of a manufacturing company. The customs team asked the manager Wajid Khan to show legal documents regarding import of moulding machine but he failed to show any relevant documents.
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www.customsbulletin.com he Model Customs Collectorate (MCC) Peshawar earned Rs 629.29 million duty and taxes during 1st to 15th of May Financial Year FY2016-17. According to MCC Peshawar, collection shows satisfactory performance during the initial 15 days of May FY16-17. During said period, the Peshawar Collectorate generated Rs 181.01 million Customs Duty (CD), Rs 0.43 million Ware House (WH) Surcharges while it collected Rs 29.92 million miscellaneous duty and taxes. The MCC Peshawar earned Rs 14.08 million Redemption Duty (RD), Rs 223.2 million collected Customs Duty (CD) whereas bagged Rs 33.90 million Sales Tax on Imports (CDI). During the 15 days of May FY16-17, the collectorate received Rs 81.68 million Sales Tax on Import of palm oil (ST VM Palm oil) and it bagged Rs 119.67 million Additional Income Tax (AIT). The MCC got Rs 55.25 million AIT on Exports. During the initial 15 days of current month (May), the Peshawar Collectorate generated Rs 0.13 million Federal Excise Duty on Imports while it clinched Rs 5.75 million Federal Excise Duty Imports (FEDI) on per 01 kilogram. The Peshawar Collectorate collected Rs 1350.45 million duty and
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taxes during the complete month of April FY2016-17. During April FY2016-17, the collectorate of Peshawar received Rs 548.58 million Customs Duty (CD) whereas it did Rs 448.76 million Sales Tax (ST). The MCC got Rs 12.20 million Federal Excise Duty on Imports (FEDI) and earned Rs340.91 Additional Income
Tax (AIT) during the same month (April FY16-17). The Model Customs Collectorate Peshawar collected Rs 1109.94 million duty and taxes during month of March of Financial Year 2016-17 while it bagged Rs441.98 million Customs Duty and received Rs 241.86 million Sales Tax on Imports during March FY16-17. The
MCC collected Rs 180.92 million Sales Tax levied as Federal Excise Duty on palm oil whereas it generated Rs 18.50 million Federal Excise Duty on Imports during the month of March 2016-17. The collectorate got Rs 194.40 million Additional Income Tax and Withholding Tax during March FY2016-17.
faisalabad ASo seizes non duty paid ladies printed cloths T
FAISALABAD
NAeeM SheIkh
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he Anti-Smuggling Organization (ASO) has seized foreign origin ladies suiting printed cloths besides impounding a Toyota Corolla. The market value of the items is Rs28,50,500 involving customs duty and taxes of Rs165,189. Sources told Customs Today, Anti Smuggling Organization received credible information re-
garding some smuggling attempts. The ASO authorities constituted a raiding team comprising Superintendent Dilawar Hussain, Tanveerul-Haq, Khalid Ashraf Noor, Inspectors Ali Zahid and Muhammad Khalid Dogar, Sepoys Muhammad Hayat, Muhammad Yasin, Zulfiqar Ali Awan. The party intercepted a Toyota Corolla car with registration No, QS-363 (ICT Islamabad) and recovered ladies suiting printed cloths of China make. The cloth was being
transported through Toyota Corolla car. The reading party intercepted the car at Circular Road Rail Bazar and recovered the smuggled cloth. The raiding team asked accused Fida Muhammad and Zeeshan khan Having to produce legal documents of the import of above said cloth, but he failed to do so. The ASO seized the cloths and registered a case against accused while further investigations are in progress. Meanwhile, The Customs Collectorate audit cell detected duty and
tax evasion of worth Rs481,494 by M/s Bismillah Textile Limited on import of raw material. Sources told Customs Today, that Customs Collectorate during the course of audit for the year 201213 w observed that M/s Bismillah Textile Ltd imported raw material of agro printed chemical, Kurarey PVA worth Rs9,629,885 under SRO 327(1)/2008 dated 29-03-2008 and got it cleared without payment of customs duty and taxes, federal excise duty, sales tax and income
tax despite the fact that no exemption of income tax was available under SRO ibid. This omission caused a loss of Rs481,494 to the government exchequer which is recoverable from the importer along with additional duty and taxes if leviable. That company law contravened of violation of SRO 327(1)/2008 read with section 148 of Income Tax Ordinance 2001 punishable under section 156(1)(1) of the Customs Act 1969.
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FBR ‘revising’ policy on tobacco taxation in next budget 2017-18 ISLAMABAD: The Federal Board of Revenue (FBR) is going to ‘revise’ policy on tobacco taxation in budget (2017-18). The Board considering whether merely a raise in Federal Excise Duty (FED) rate on cigarettes in budget would increase revenue from documented sector and decrease illicit trade of non-duty paid smuggled/counterfeit cigarettes. The ongoing budget finalization exercise is seriously considering some policy issues on cigarettes. Firstly, it is being examined that heavy taxation on cigarettes is the only way to generate additional revenue from tobacco sector.
Tuesday May 23, 2017
National
customs court extends hearing to frame charge against smuggler
govt working on energy projects to meet growing demand: Dastagir
LAHORE
M IMRAN MehAR
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he Special Federal Court of Customs Taxation and Anti-Smuggling extended the date of hearing of a case of gold smuggling as the court was to frame the charge against the accused. He was arrested by the customs authorities from the Lahore Airport. Sources told Customs Today that suspect, Ibrar Islam, was apprehended by the customs preventive from the Allama Iqbal International Airport while he was travelling for Muscat. During a search of his luggage, the customs officials found 550 gram of gold that he was trying to smuggle into the gulf state. The customs registered a case against Ibrar and seized the gold.
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Rto-II collects Rs23335m in first 10 days of May KARACHI
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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. The IAB, R&D department registered an FIR against the accused company and nabbed the offenders.
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ISLAMABAD
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ommerce Miinister Khurram Dastagir Khan has said that present government was working on many energy projects to meet growing demand in the country. Talking to a private news channel, he said that Pakistan Muslim League Nawaz (PML-N), government after coming into power had taken initiatives and focused on energy projects. He said that Sahiwal Coal power plant had started production while several other power plants would start generating electricity gradually. He said that a target of 17,000 megawatt had been achieved in a record period of time. To a question he said that scheduled loadshedding was going on across the country. He, however said that there was no loadshedding in the industrial sector. The minister said that attention was not given in the past due to which, the country was facing loadshedding problem. He said that several energy projects would be completed through China Pakistan Economic Corridor (CPEC) projects. Khurram Dastagir said that a huge investment in the energy sector has been made under the CPEC projects. Meanwhile, The Board of Investment (BOI) said a delegation of Chinese experts would visit Pakistan on June 5 to review the suitability of
Prioritized Economic Zones (PEZs) in Sindh and Khyber Pakhtunkhwa. The delegation of Chinese experts headed by deputy head of mission of Chinese Embassy will evaluate Rashakai Nowshera and Dhabeji PEZs in Sindh, a BOI spokesman Shah Jhan Shah said. He said foreign investors were keen to invest in various sectors of the country.The government is committed to provide ease of doing business for foreign investors and also
Several energy projects would be completed through china pakistan economic corridor (cpec) projects. khurram Dastagir said that huge investment in the energy sector has been made under the cpec projects
Shc adjourns hearing of interim bail plea
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KARACHI
M B RANA
www.customsbulletin.com indh High Court (SHC) has deferred on an application for interim relief till the concerned collectorate makes an appearance on notice. An appellate bench comprising Justice Munib Akhtar and Justice Arshad Hussain Khan heard the case. The bench was hearing an application filed by petitioner com-
pany Raja Steel which imported a consignment of Prime Quality Steel sheets but their declaration was disputed by the Pakistan Customs, Appraisement, East. The bench asked Principal Appraiser Law, Ilyas Ahsan to convey to the concerned collectorate about instant petition being heard by the bench. The counsel for petitioner further submitted that the consignment is lying at the port
since many months and port charges are multiplying day by day. He also submitted that Steel Committee formed by the Customs Department has re-examined the consignment on 9-52017 and some time will be taken before the recommendation/report is prepared by the committee so as an interim arrangement good be released against payment of custom duty beside security for the any additional amount.
global competitiveness for Multinational Companies (MNCs), he added. Shah Jahan said a total of seven SEZs cells had been approved for facilitating the investors through one window operation to provide them facility at one place. “SEZs investors would get the facility for plant and machinery import without customs duty in all four provinces of the country.” Three each SEZs would be established in Punjab and Sindh while one in KPK, he added.
Bahawalpur trader to attend training in Qatar resident, Anjuman Tajran, Bahawalpur, Syed Israr Hussain would leave for Qatar on Saturday to attend a diplomacy training programme to be held at George Town University in Qatar. He said that he received invitation to attend sixday regional diplomacy training programme in Qatar.
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Water inflow in rivers jump to 282,200 cusecs ISLAMABAD: The water inflow in all major rivers has jumped to 282,200 cusecs against outflow of 248,700 cuesec due to melting of snow in northern areas. The inflow in river indus surged to 130,800 cuesec against outflow 122,100 cusecs while in river Jhelum it was recorded as 59,800 cusecs against outflow of 35,000 cusecs. According to data released by Indus River System Authority (IRSA) on Friday, water level in the Indus River at Tarbela Dam was 1422.98 feet, which was 42.98 feet higher than its dead level of 1,380 feet.
Tuesday May 23, 2017
Business
‘people with no connectivity to get 3g by 2018’ ISLAMABAD
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inister of Information Technology Anusha Rehman Khan has said people with no connectivity will get 3G by the end of 2018 and everyone will be connected. She graced the award ceremony of National Competition of Final Year Projects organized by National ICT Grassroots Research Initiative (NIGRI), said a press release issued here. The Pinancial assistance under the program enables students of public and private sector universities, undertaking Final Year Projects (FYP), to build prototypes that
cDNS achieves Rs 174b upto May 15 ISLAMABAD
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entral Directorate of National Savings (CDNS) has achieved Rs 174 billion savings till second months of last quarter of current fiscal year,from July 1 to May 15, FY2016-17. The target for the year 2016-17 was Rs 228 billion, while the Directorate managed to achieve Rs 218 billion for the previous fiscal year, a CDNS. He said the CDNS had notified upward revision in the profit rates for various saving certificates to benefit its investors especially the widow and pensioners, which had been applicable from February 1, 2017.
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demonstrate advances in technology and showcase creativity, innovation and hands-on engineering and development skills. Ever since the inception of NGIRI in 2011, 72 public and private sector participating universities submitted
5,538 FYP proposals out of which 2,067 FYPs received an overall grant of worth PKR 130 million. Under Phase-II of this initiative, a national competition was announced in 2016. Speaking on the occasion, the minister asked the students and
judges, “how the technology has changed in the past 3 year. She congratulated all the participants for working on the projects and said 3G/4G brought the revolution in Pakistan. She said, “I personally believe that coding is the future; we need to train our children on computer skills. We are training 5 years old. The freelancer initiative is to turn the students to become entrepreneurs’ because no government can provide so many jobs, saying that 1 million freelancers in 2 years is the target. I want to see 50 % of the population of my country to contribute in the economy,” she added Awards ceremony was carried out by the Minister, where a cash prize of Rs. 400,000 was awarded to 1st position holder Zain Qasir and Hamza PNEC NUST for their project.
ogDcL earns Rs126.630b in three quarters of fY 2016-17 O
ISLAMABAD
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il and Gas Development Company (OGDCL) has earned Rs 126.630 billion in three quarters of the current Piscal year as compared to Rs 122.711 billion in the corresponding period of last year, registering around Rs four billion increase in its income. “The company’s net proPit before taxation registered to Rs 64.520 billion, while the net proPit after taxation stood at Rs 47.595 billion, as
compared to last year’s Rs 61.924 billion and Rs 43.500 billion respectively, translating into earnings per share of Rs 11.07,” ofPicial sources said. The OGDCL’s Board of Directors declared third interim cash dividend for the year at Rs 1.50 per share, besides 40 percent and 38 percent operating proPit margin and net proPit margin, they said. While, the sources said, average net realized price of crude oil sold was $ 43.76 bbl (Billion Barrels) against $ 38.83 bbl during the corresponding period of last year. Besides, the company sold natural gas
amounting to Rs 233.96 mcf (million cubic feet) as compared to Rs 256.23 mcf gas of the last year. During the period, they said, the company completed 2D seismic acquisition on 3,293 kilomter area and 3D of 1,038 square kilomters, and drilled 13 new wells including six exploratory/appraisal wells and seven development wells. The OGDCL’s exploratory efforts yielded four oil and gas discoveries namely Gundanwari-I, Mithri-I, Khamiso-I and Chutto-I, the sources said adding that its net crude oil production remained 43,989 barrels per day.
chinese experts to review suitability of peZs ISLAMABAD
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he Board of Investment (BOI) on said a delegation of Chinese experts would visit Pakistan on June 5 to review the suitability of Prioritized Economic Zones (PEZs) in Sindh and Khyber Pakhtunkhwa. The delegation of Chinese experts headed by deputy head of mission of Chinese Embassy will evaluate Rashakai Nowshera and Dhabeji PEZs in Sindh, a BOI spokesman Shah Jhan Shah said. He said foreign investors were keen to invest in various sectors of the country.The government is committed to provide ease of doing business for foreign investors and also global competitiveness for Multinational Companies (MNCs), he added. Shah Jahan said a total of seven SEZs cells had been approved for facilitating the investors through one window operation to provide them facility at one place. “SEZs investors would get the facility for plant and machinery import without customs duty in all four provinces of the country.” Three each SEZs would be established in Punjab and Sindh while one in KPK, he added. Responding to a question, he said nine more industrial zones had been approved for high tech industry to enhance the exports and provide employment opportunities in the country.
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Nespak submit master plan, Rs228 billion projects proposed MULTAN
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espak and engineers of Artelia Group have submitted a final draft of a master plan before the managing director Wasa Multan which they believe would meet growing population’s requirements of sewerage and water supply till 2040. Nespak and Artelia Group en-
gineers had also given a detailed briefing to MD Wasa last Thursday stating that the comprehensive planning has been completed while keeping in view requirements of sewerage, drainage and water supply facilities for 584 square kilometre area for the next 25 years. Short term, medium term and long term projects had been proposed to make these facilities available phasewise, official
sources said. The plan proposes different projects worth Rs 228 billion for land acquisition, water supply and sewerage, sludge carrier, water treatment plants, disposal stations, and drainage during next 25 years. Engineers said with the population growing, Multan would need more tube wells, overhead reservoirs, water supply network, disposal stations, sewerage network, water treatment plant and
sludge carrier. The plan proposes 112 new tube wells, two new disposal stations at Jahangirabad and Zakariya town, southern sludge carrier, and shifting of disposal station at Chungi No 9. The plan recommended division of Multan city into four administrative zones for better sewerage system management and separate sub divisions for sludge carrier and water treatment
plants. MD Wasa Rao Muhammad Qasim declared master plan a milestone. He asked Nespak to prepare detailed engineering designs of priority projects that are part of the master plan. He also asked Nespak to survey Multan city and surroundings to identify areas devoid of sewerage system, water supply or both and to identify old sewerage lines in need of replacement.
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irector General Customs Intelligence and Investigation Shaukat Ali said we are focusing on anti-money laundering operations, especially on trade based money laundering, and trying to stop all the possible ways of trafPicking including smuggling. We are providing training to our ofPicers as to how to investigate the anti-money laundering cases. Talking with Customs Today, he said we have almost ended all the organized methods of smuggling. Now it is not possible for any person to use the traditional ways and means for illegal trade or smuggling. We are doing our best to curb this menace and the results are excellent. Responding to a question, he said there is no kind of external or internal pressure on the directorate general regarding the money laundering cases including model Ayyan Ali case. Now all the money laundering cases are pending in different courts therefore I cannot
Tuesday, May 23, 2017
pass any comments. He said containers’ case is still pending with the Supreme Court and the report of the NAB regarding the case is also submitted to the Supreme Court. He said the people, transferring their money aboard through illegal channels like Hundi or Hawala, are tax evaders and they would have to face the music. The most important thing in money laundering cases is to oversee inquiries or investigations. Sometimes we write letters to counsels abroad but often don’t get any
answer from them. We also need foreign cooperation and technical assistance in this regard. Meanwhile, The Federal Board of Revenue is working hard to meet the revenue target of Rs 3621 billion but even then shortfall is expected to be between Rs 225-250 billion and revenue collection will stay under Rs 3400 billion. This has been conveyed to Federal Finance Minister Senator Ishaq Dar. A top ofPicial of the Federal Board of Revenue told Customs Today that achieving revenue targets for current month (May) also seems to be difPicult. He said the government has taken initiatives to provide relief to the common man. Besides other many reasons, this is the main cause to reduction in revenue growth. Next Pinancial year revenue target is likely to be set around four trillion rupees but it will be an unrealistic target. The FBR has proposed that under present b cur o t circumstances and viewing t s r be re prevalent tax culture, revng ou a i s o t d l u e res e we ar h , enue target should be less t n o d i n t ling a a ques than Rs 3900 billion for o t g r n smugg al o ondi n r p the next Pinancial year. s e t e x R d of e lent.
excel rate no kin irecto ere is d h t e h d i t on he sa y ssure mone al pre n r g the e n t i l d in r a o m de al reg uding l c gener n i s case e ering Ali cas laund Ayyan
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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
Missing growth rate target
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ccording to the data released by the Pakistan Bureau of Statistics, the current government is like to achieve 5.28 percent growth rate during the current fiscal year, but has missed the projected target of 5.7 percent. The country achieved 6.8 percent growth rate a decade ago during President Pervez Musharraf’s regime, but the ensuing democratic governments failed to reach this target until today. The last year’s target was 5.5 percent, but only 4.51 percent could be achieved.A good news is that the large-scale manufacturing sector has shown good performance and marked a growth rate of 10.46 percent in March on a year-on-year basis, which is the highest growth in the last few years. The growth was recorded at 8 percent in February. In the first nine months of the current fiscal year, the large-scale manufacturing sector grew by 5.06 percent. The production data of 36 items was received from the Ministry of Industries and Production while another data of 65 items was received from the provincial bureaus of statistics, showingan overall growth of 3.97 percent and 1.07 percent, respectively.However, the production data received from the Oil Companies Advisory Committee of 11 items indicated a very bleak growth of only 0.03 percent in March. The problem faced by the government and independent institutions is that a major share of economy is undocumented and all the efforts to bring them into official papers have not only failed but backfired. A big chunk of the business community avoids coming into the tax net despite minting billions of rupees taxable income a year. On another note, the government is also not able to soften the tax laws for the new and genuine taxpayers to protect them from the alleged highhandedness of the corrupt officials. Tough laws bring more trouble for honest tax officials, but give magic wand in the hands of black sheep to exploit the law for vested interest. The biggest problem currently facing the industry is energy crisis. The government had promised that it would end power outages in a couple of years, but three and half years have been passed without improvement in the power supply. A better investment climate, tax concessions and a developed infrastructure with cheap electricity are a few components to enhance growth rate. It is yet to be seen how the government will work on all these components to achieve the desired goals.
New gDp record A
LAHORE
DR AftAB AfZAL
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ccording to newspaper reports, the gross domestic product of Pakistan has cross $304.4 billion and the country has achieved the highest annual growth rate of 5.3 percent in a decade. A recovery in the agriculture sector and good performance in the services sector remained driving force in pushing up the growth rate. On another note, the National Economic Council has set country’s total development budget at $190 billion for next year with focus on the development of infrastructure and energy sectors. Earlier, the govern-
ment had heavily focused on the industrial sector, but it failed to achieve the desired goals in the outgoing fiscal year. The growth in the large-scale manufacturing sector remained below the target at 4.9 percent, but the smallscale manufacturing recorded a growth of to 8.1 percent. The growth in the services sector, which accounts for more than half the economy, has been recorded at 6.7 percent against a target of 5.7 percent. The wholesale and retail trade registered a growth of 6.8 percent against a target of 5.5 percent. The country remained under political and economic crisis during the whole fiscal year, but it is good omen that the economy registered improvement in
various sectors. The country is facing trade deficit with most of the trade partners and energy crisis still haunts the industrial sector. The government had achieved the Generalised Scheme of Preferences status from the European Union and it was hoped the exports would increase many fold. However, the exports have continuously been falling for the last three years and the government has so far failed to arrest the declining trends. It seems the finance minister is working on ad-hoc basis and seldom appears in the official meetings. Despite crossing the $300 billion barrier, the country still needs a proactive finance minister and commerce minister. The taxation system is
directly under the supervision of the finance minister, but he could not remove ambiguity in tax laws and simplify the procedure to file tax returns. Pakistan is attracting very little foreign investment as compared to the countries in the region and it should be a point to ponder for the government policymakers. There is a need to bring stability in the political system to create conducive environment for investment. Earlier, the government had fulPilled its needs by engaging in a three-year extended facility programme with the International Monetary Fund. It is hoped the government will overcome the Pinancial difPiculties without getting help from any foreign Pinancial institution.
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Compeq expects revenues to rebound in 3Q17 WASHINGTON: Affected by seasonal factors, PCB maker Compeq Manufacturing expects its revenues to stay flat in the second quarter of 2017 before staging a rebound in the third quarter. First-quarter revenues totaled NT$11.215 billion (US$371.21 million), down 21.1% on quarter but up 19.45% on year. In April, Compaq saw its revenues slide 5.75% on quarter but up 13.48% on year to NT$3.456 billion. Compeq also reported net profits of NT$398 million for the January-March period, down 54.07% sequentially but up 52.02% on year. EPS for the first quarter reached NT$0.33 compared to NT$0.22 of a year ago, while gross margin stood at 13.11%, down 0.92pp sequentially but up 1.48pp on year. Compeq is expected to begin to ship substrate-like PCB (SLP) products for production of the new iPhone devices in July, which will help ramp up its revenues starting from the month, according to industry sources.
Banking channels to promote trade ties between turkmenistan KARACHI
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anking channels between Turkmenistan and Pakistan are being developed on strong lines so as to facilitate trade between the two countries, said Atadjan Movlamov, Ambassador of Turkmenistan to Pakistan here. During a visit Wednesday to the office of Federation of Pakistan Chambers of Commerce and Industry he said close trade relations between the two countries was need of hour. “We can collaborate in trade, energy, agriculture & livestock, science & technology, education, health, sports and tourism sectors,” said the Ambassador. He in this context suggested exchange of delegations, single country exhibition and road shows to further
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streamline the efforts being made to strengthen the endeavour. Talking to Alamgir Firoz, Chairman, FPCCI Standing Committee on Diplomatic Affairs and Maher Alam Khan, FPCCI Secretary General (Acting) he said Turkmenistan was providing no less than 16 crucial facilities, free of cost, to the investors. Atadjan Movlamov said his country, with 100% literacy rate, is particularly interested to collaborate with Pakistan in health and education sectors. Referring to MoUs signed between the two countries, he said the two are not only interested in expanding trade and economic relations” but also share similar views on matters related to regional peace and stability. Maher Alam Khan said under China-Pakistan Economic Corridor, Pakistan has finalised land routes meant to provide access to Central Asian states, such as Turkmenistan to Pakistan.
Tuesday May 23, 2017
Chambers
chinese entrepreneurs keen for JVs in construction & real estate sectors A
ISLAMABAD
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Chinese delegation of Qingdao City led by Wang Zhaoming, Vice General Manager, Zhongzhi Architectural Decoration Co., Limited visited Islamabad Chamber of Commerce and Industry to explore opportunities of joint ventures and business partnerships in the Pield of construction, building materials and real estate sector with Pakistani counterparts. Speaking at the occasion, Wang Zhaoming, Vice General Manager, Zhongzhi Architectural Decoration Co., Limited said that they have come to Pakistan in pursuits of the objectives of China’s One Belt One Road project. He said Chinese delegation has already visited Lahore and observed good potential for Chinese investors in Pakistan building material, electronics and textiles sectors. He said Chinese entrepreneurs were looking for serious partners in Pakistan to enter into JVs in building material, construction, real estate and other sectors for further strengthening bilateral cooperation between China and Pakistan. He also invited
ICCI delegation to visit Qingdao to explore business opportunities. The delegation was representing real estate and construction sectors. Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry in his welcome address said that CPEC has opened new horizons of long term cooperation between China and Pakistan. He stressed that
Chinese investors should explore maximum joint ventures with Pakistani counterparts in CPEC projects. He said many sectors of Pakistan’s economy including real estate, construction, building materials, energy and infrastructure development offered lucrative investment opportunities to foreign investors and urged that Chinese investors should bring
Dubai chamber confederation of Indian Industry in talks to set up skill centre
T DUBAI
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he Dubai Chamber of Commerce and the Confederation of Indian Industry (CII) are in discussions for launching a joint skill development centre to train Emirati youth. The CII, which announced on Sunday its plan to open its 10th overseas ofPice in Dubai within three months, said the move would help further boost the two-way trade, investment and business engagement between the two countries. The delegation of India’s largest industry chamber headed CII president Shobana Kamineni held discussions on Monday with Dubai Chamber on the feasibility of the project. The 13member delegation, which arrived
on Sunday and held discussions with Abu Dhabi Chamber and Mubadala on stepping up investment and business relations, met in Dubai with Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Minister of Economy Sultan bin Saeed Al Mansouri, In a media briePing, Kamineni said India and the UAE have exciting opportunities to boost trade and investment cooperation in various sectors. India has made remarkable headway in ease of doing business and is now offers overseas investors enormous opportunities in several key sectors. Indian Ambassador to the UAE Navdeep Singh Suri, and Indian Consul General in Dubai Vipul were also present at the event. Rakesh Bharti Mittal, president-designate of the CII, said businesses from both countries
could collaborate on food and agriculture and defence equipment manufacturing sectors. “India has the potential to be the food basket for the UAE. Indian defence equipment manufacturing companies are well-positioned to set up joint ventures in the UAE,” he said. Chandrajit Banerjee, CII Director General, said Dubai Chamber and the delegation also explored cooperations in water technology sector. Meanwhile, Paraguay President Horacio Cartes recently announced plans to open the country’s Pirst commercial representative ofPice 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.
technology and machinery to Pakistan to set up industrial units. Khalid Malik, Senior Vice President, Islamabad Chamber of Commerce and Industry welcomed the Chinese delegation to ICCI and hoped that their visit would lead to materialization of some good business deals between the private sectors of both countries.
canadian envoy visits Rawal International expo 2017 anadian High Commissioner Perry Calderwood Friday visited Rawal International Expo 2017 organized by Rawalpindi Chamber of Commerce and Industry (RCCI) at Ayub National Park. Visiting different stalls, Calderwood appreciated the role of chamber in promoting trade activities through exhibitions. He said his country gives great importance to its relations with Pakistan, and wants to further promote trade and economic ties. Exhibitions are the backbone of any country for promoting bilateral trade relations and regional trade, he said. He assured full cooperation and assistance for promoting trade delegations between the chambers. –CB Report
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Usman Ahmed made Second Secretary (IR Policy) ISLAMABAD: Usman Ahmed Khan, a BS-18 officer of Inland Revenue Service, has been transferred and posted as Second Secretary (IR Policy), FBR (HQ), Islamabad with immediate effect and until further orders. According to the notification, if the officer, presently posted as Deputy Commissioner-IR, Large Taxpayers Unit, Lahore, is drawing performance allowance (equivalent to 100 per cent of basic pay), he will continue to draw the same on his new place of posting. The officer has been directed to relinquish/assume charge, using online HRMS facility made available to FBR or by using IJP logins, it added.
Tuesday May 23, 2017
Islamabad customs Inspector Safdar granted performance allowance ISLAMABAD
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eight Stenotypists promoted as Assistant private Secretaries E
ISLAMABAD
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afdar Abbas, 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 (Preventive), 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.
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Shafiullah Niazi assumes charge as Secretary-IR hafiullah 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 11, 2017. Meanwhile, Farooq Ahmad, a BS-18 officer of Inland Revenue Service, has assumed the charge as Secretary (IT) (OPS). The officer, in pursuance of Board’s notification No. 1354-IR-III/2017 dated 02.05.2017, took the charge of the post of Secretary (IT) (OPS) at Federal Board of Revenue (HQ), Islamabad on May 10, 2017. –CB Report
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ight Stenotypists (BS-14) have been promoted to the post of Assistant Private Secretaries (BS-16) on regular basis with immediate effect. The ofPicers who have been promoted include Muhammad Ikhlaq Abbasi (RTO, Islamabad), Waseem Javad Dar (LTU, Islamabad), Shahid Basher (RTO, Islamabad), Muhammad Arshad Kiani (LTU, Islamabad), Arshad Mehmood Abbasi (RTO, Islamabad), Zia ur Rehman Abbasi (LTU, Islamabad), Ch Muhammad Afzal (LTU, Islamabad) and Tahir Mehmood (RTO, Islamabad). According to the notiPication issued by Secretary (Mgt-IR-IV) Wilayat Khan, 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 ofPicers are drawing performance allowance/FBR-Pixed allowance, they
will continue to draw the same on their promotion. They will be on probation period of one year extendable for further period, not exceeding one year, provided that if
no order is issued by the day following termination of probationary period, the promotion will be deemed to be held until further orders, it added.
central Region collects Rs7,796m taxes till May 15
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he Customs Central Region has collected Rs 7,796 million all duty and taxes during the Pirst 15 days of May 2017. As per details, the Customs Appraisement Lahore collected Rs 3,335 million during the period under review while the Customs Lahore Preventive collected Rs 1,566 million in 15 days. On the other hand, the Collectorate of Multan collected Rs 2,379 million during the period under review. In the same way, the collectorate of Customs Faisalabad collected Rs 515 million in 15 days. Overall the Central Region collected duty and taxes from four collectorates worth Rs 7,796 million to achieve the targets. Sources said that Chief Collector of Customs Central Region Zeba Hai Azhar has called a collectors conference in order to stress upon the need to intensify efforts to achieve target for the Pinancial year 2016-17.
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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.
fBR urged to amend St laws regarding IR officers’ posting KARACHI
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ederal Board of Revenue (FBR) has been urged to amend sales tax laws related to posting of Inland Revenue officers at premises of a registered persons for monitoring sales and production. In its budget proposals for 2017/2018, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that the FBR or the Chief Commissioner has been vested with the discretionary power to post Inland Revenue Officers at the premises of the registered person, monitor production, sales of goods and stock position etc. The FPCCI said that such discretionary powers are out dated and create a perception of anti-busi-
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ness and anti-investment government policies and create harassment. It further said that in the modern era of computerization and available methods of monitoring the entire supply chain, and production capacity of each industry with such harsh provisions are unnecessary. Further, it encourages direct contact between a taxpayer and tax collector which is against the government policy as it leads to corruption and tax evasion. Besides, it is revival of supervise clearance scheme of central excise, in Sales Tax Act, 1990. The Section 40B of Sales Tax Act, 1990 should be repealed. By elimination of this discretionary power, it will restore confidence of investors, encourage expansion of industry and generate employment opportunities.
Tuesday May 23, 2017
Karachi
million Shc directs IR Audit to decide Rs46767 tax collected in 10 months: Minister appeal filed by M/s Baker hughes eho within 4 weeks S KARACHI
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he Sindh High Court (SHC) has directed the commissioner Inland Revenue Appeals-I Karachi to decide the appeal of M/s Baker Hughes EHO Limited against attachment of its bank accounts within four weeks. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, ordered this on a constitutional petition Piled by the company, challenging a show cause notice issued by additional commissioner Inland Revenue Audit Range-B, Zone-IV Large Taxpayers Unit-II for recovery of disputed amount. During the hearing, counsel for the petitioner stated that it is registered with Securities and Exchange Commission of Pakistan as a branch of M/s Baker Hughes EHO Limited (Holdings) incorporated in Bermuda. The principal business activity of the petitioner is sale, service and rental of oil Pield equipment within Pakistan. He said that the additional commissioner Inland Revenue Audit Range-B, Zone-IV, Large Taxpayers Unit-II issued the show cause notice on June 11, 2016, alleging that the petitioner’s assessment
for tax year 2012 is erroneous insofar as it was prejudicial to the interests of revenue, therefore, petitioner was directed to explain its position. He further argued that dated 10/03/2017, respondents raised a demand of Rs99, 277, 218 in respect of tax year 2012 against the petitioner, being aggrieved it approached the Commissioner Inland Revenue Appeals and moved an appeal along with stay application, which is pending before disposal, however, in the absence of any stay order, petitioner is completely in the dark as to its appeal and stay application shall be heard and or decided. Counsel said
that now respondents issued notice for attachment of petitioner’s bank account for said recovery. Counsel submitted that court may pass any interim relief, after arguments, court disposed of the petition with directions to the respondents not to enforce recovery of impugned demand, which is subject matter of appeal before commissioner appeals-IV till its Pinal disposal, whereas, in case of any adverse order, if passed by the commissioner appeals, the respondents shall not enforce recovery of impugned demand for further period of 7 days from the date of receipt of such appellate order.
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 fiscal year Rs 39457.588 million were collected in the same period. This he said while presiding over a departmental meeting here in his office 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 briefing 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 officers concerned to achieve the tax targets before the current fiscal year ended. ‘
Dg Valuation revises customs values of different honey
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KARACHI
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he Directorate General of Customs Valuation has revised the customs values of various types of honey from different origins through Valuation Ruling No 1152/2017 under Section 25A of the Customs Act, 1969. According to details, the customs values of various types of honey from different origins were determined vide Valuation Ruling No.966/2016 dated 15.11.2016. Some importers Piled Revision Petitions under Section 25D of the Customs Act, 1969.
The Director General vide Orderin-Revision No.295/2017 dated 25.01.2017 remanded the matter back to the Director Valuation, Karachi, for redetermination of value of Honey keeping in mind the different retail packing thereof. Hence an exercise was initiated by this Directorate General to determine the customs values of honey afresh. A meeting was scheduled on 28-03-2017 with stakeholders of subject goods which was attended by representatives of clearance Collectorates also. All stakeholders were requested to submit copy of GDs & invoices of imports during last three months showing factual value. Website names and email ad-
dresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copy of contract or any other document through which price has been Pinalized with the supplier of the goods. Copy of L/Cs and contract made during the last three months showing the values of the item in question. v) as well as copies of Sales Tax Invoices issued during last three months showing the difference in price (excluding duty and taxes) were also sought to substantiate that the benePit of difference in price is passed on to the local buyers. The importers / stakeholders contended that the subject goods
were imported at values lower than those determined Valuation Ruling No.966/2016 dated 15.11.2016. The importers insisted that since the subject goods are mainly being sold at Super and General Stores, therefore, the margins of the retailers are high thus adding to the expenses incurred by the importers besides additional costs like marketing expenses etc. The view point of all stakeholders was considered and deliberated upon before arriving at customs values of Honey. Valuation methods provided in Section 25 of the Customs Act, 1969 were duly followed and applied sequentially to address the valuation issue at hand.
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House to approve bill imposing taxes on fuel Tuesday May 23, 2017
World
MANILA: The House of Representatives will approve on second reading next week the bill imposing a P6 tax on diesel, kerosene, cooking gas and bunker oil, which is used for electricity generation. Critics claim the new levy will result in higher transportation costs, increased fares and higher consumer prices and power rates. Emerging from a majority caucus called by Speaker Pantaleon Alvarez, Majority Leader Rodolfo Fariñas told a news conference that they agreed to start floor debates on the bill on Monday or Tuesday and pass it on second reading on Wednesday. “We will approve it on third and final reading before we adjourn our first regular session on May 31. The bill will be with the Senate when we open our second regular session in July,” he said.
Russian watchdog slams cartels Indonesia sues thailand’s ptt for $2b in domestic drug market BANKOK/JAKARTA
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he ever increasing prices for drugs in Russia could be explained by the existing cartels, which have been created in the domestic pharmaceutical market by some global drugmakers and their distributors, according to recent statements of Igor Artemiev, head of the Russian Federal Antimonopoly Service (FAS). Mr Artemiev said that prices for drugs that contain the same substances, but are sold in Russia under different brands in some cases, are overestimated by 160 times, reports The Pharma Letter’s local correspondent. Mr Artemiev has also said that there are “thousands of cartels” on the Russian pharmaceutical market, pointing out that the majority of tenders in this Pield are conducted with serious violations. Finally, Mr
Saudi to sign trade, political deals with uS audi Arabia confirmed on that it will sign commercial and political deals with the US during President Donald Trump’s visit to Riyadh next week. Arab-Islamic-American Summit, which will be attended by 37 leaders, will focus on combating terrorism, bolstering trade, investment, youth and technology, Xinhua quoted Saudi Foreign Minister Adel Jubeir as saying. At end of the summit, leaders are going to launch global counter-extremism centre in Riyadh, which will fight an “ideological battle,” he added. Jubeir also said this summit with US is going to “open a new page” in terms of western countries’ dialogue with Muslim countries. He also said that Saudi Arabia wants to send a message to the West that the Muslim countries are “not enemies,” adding that the Riyadh comes second after the United States in the fight against IS militant group. –CB Report
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Artemiev said that many global drugmakers operating in Russia are “imposing their practices” that lead to an increase in the cost of drugs in the local market. Meanwhile, German customs ofPicers seized an Ecuadorian shipment of over 90 pounds of cocaine bound for Russia, the Customs In-
vestigation OfPice said in a statement late on Wednesday. “The Pight against cocaine trafPicking in large ports is our top priority. The number of Pinds and the quantity of cocaine taken out of circulation has grown signiPicantly,” Investigation OfPice spokesman Stephan Meyns said in the press release.
gt capital’s core income rises 12% to p3.2 billion in January-March
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T Capital Holdings, Inc. achieved a core net income from January to March 2017 of P3.2 billion from P2.8 billion in the same period last year, representing a 12 percent increase. The company’s consolidated net income reached P3.1 billion, growing Pive percent from P2.9 billion in the previous year. GT Capital’s consolidated revenues rose 32 percent to P48.8 billion in January to March 2017, from
P36.8 billion in 2016. Strong auto sales from Toyota Motor Philippines and higher equity in net income of associates Metropolitan Bank and Trust Company, AXA Philippines, and Metro PaciPic Investments Corp. led to GT Capital’s revenue growth. “We started 2017 on solid footing. The robust revenue and core earnings growth momentum from our component companies resulted in GT Capital’s. –CB Report
ontradictory claims sit at the heart of a bitter row that reignited between the Indonesian government and PTT, Thailand’s state-owned oil company, last week over a 2009 oil spill in the Timor Sea between Australia and Indonesia. Reported to be the worst offshore drilling accident in Australian history, it resulted in an estimated 30,000 barrels of oil leaking for 74 days from a well operated by a PTT subsidiary in the Montara oil Pield. Nearly eight years on, the Indonesian government has Piled suit against PTT and two subsidiaries PTT Exploration & Production and Australia-based PTTEP Australasia (PTTEP AA), the operator of the oil rig. The demand is for 27.5 trillion rupiah ($2.06 billion) in compensa-
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tion for environmental damage and rehabilitation in the Indonesian regions affected. The civil lawsuit was Piled at the Central Jakarta District Court. PTTEP was Pined 510,000 Australian dollars ($37,7101.6) by an Australian court in 2011. Indonesia said it decided to seek legal redress against PTT after negotiations proved fruitless. OfPicials say they believe they have sufPicient evidence to win. “At the beginning, we thought there was goodwill from their side, but after several meetings there appeared to be none,” Arif Havas Oegroseno, Indonesia’s deputy coordinating minister for maritime affairs, told reporters on Friday. According to Oegroseno, meetings were held with PTTEP in 2012 and 2013. The possibility of a memorandum of understanding (MOU) was discussed to launch a joint committee to settle the case, but nobody from PTTEP appeared when it was time to sign. PTTEP has consistently denied any related damage in Indonesian waters.
Iran mineral output up 13%
ajor Iranian mining companies produced 28.02 million tons of mineral products during the one-month period ending indicating a 13% growth compared with last year’s similar period, according to the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report. Iron ore concentrate had the biggest share in Iran’s mineral production during the period with 2.986 million tons, registering a 63.89% growth year-on-year. Gologhar Mining and Industrial Complex accounted for 1.05 million tons of the total output, followed by Chador-
malu Mining and Industrial Complex with 849,569 tons, Iran Central Iron Ore Company with 405,262 tons, Middle East Mines and Mining Industries Development Holding Company with 234,329 tons, Goharzamin Iron Ore Company with 270,197 tons and Opal Parsian Sangan with 176,549 tons. The above companies posted double-digit growth with the exception of Gohar Zamin and MIDHCO. The former had no production early last year while the latter’s output dropped by 20.28%. Opal Parsian Sangan had the highest growth with a 510.2% upsurge in output. –CB Report
china pe prices hit 11-month lows on weak demand
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BEIJING
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olyethylene import prices in China have hit 11-month lows because of weak demand resulting from a multitude of factors, market sources said on Monday, prior to the opening of ChinaPlast, which runs from Tuesday to Friday
in Guangzhou, China. The bearish reasons listed by market participants include higher interest rates, slow economic growth, higher domestic production in China, less debt lending, a weak Chinese currency, low futures trading volumes, high import volumes, and new global capacities. Linear low-density polyethylene import prices, at $1,115/mt CFR
Far East Asia as assessed on May 12, were at its lowest seen since June 2016, according to S&P Global Platts data. The domestic Chinese market saw abundant supply from both local and overseas suppliers. PE imports in Pirst-quarter 2017 rose 25.66% from Q1 2016 to 3,051,275 mt, according to China import statistics. This was a result of new global suppliers in 2017,
with a total capacity of 5-6 million mt/year, all targeting China as a key import market, traders said, Domestic PE production in China in Q1 2017 also rose to around 4 million mt, an increase of “probably around 10%” from that in Q1 2016, traders said. This led to the current high PE inventories at ports, estimated at around 500,000 mt, according to traders.
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Japan offers to buy 138,188 tonnes food wheat via tender TOKYO: Japan’s Ministry of Agriculture is seeking to buy a total of 138,188 tonnes of food quality wheat from the United States, Canada and Australia in a regular tender that will close late. Japan, the world’s sixth-biggest wheat importer, keeps a tight grip on imports of the country’s second most important staple after rice, and buys the majority of the grain for milling via tenders typically issued thrice a month. Details are as follows (in tonnes): COUNTRY TYPE Quantity U.S. Western White 19,507* Hard Red Winter (semi hard) 25,490* Dark Northern Spring 31,360* (protein minimum 14.0 pct) Canada Western Red Spring 30,271** (protein minimum 13.5 pct) Australia.
goa customs seizes gold worth 1.86 million at Dabolim n a smuggling attempt, the Air Intelligence Wing of the Commissionerate of Customs Goa Unit on Sunday seized 698 grams of gold worth Rs 1.86 million from a Uttar Pradesh native at the Dabolim Airport. According to officials of Goa Customs, during arrival of Air Arabia flight G9-492 to Goa from Sharjah and based on the inputs provided by other agency, they intercepted an international passenger (name and details withheld) native of Sharanpur in Uttar Pradesh and recovered 6 gold bars of ten tolas each. “The passenger had concealed smuggled gold in the battery compartment of LED search light kept in the check in baggage” said Assistant Commissioner of Customs Gaurav Kumar Jain. The gold has been seized and is liable for confiscation under the sections 110 and 111 of the Customs Act 1962, further investigation is under progress. Meanwhile, this is the eighth seizure case made by the Air Intelligence Unit of Goa Customs at Dabolim Airport since April 2017. –CB Report
World Customs
Tuesday May 23, 2017
customs seizes 7kg of rhino horn at oR tambo airport
uk inflation climbs to four-year high, beating forecasts nflation hit the highest level in four years during April, beating forecasts and likely ending a two-year period of real wage growth, according to the latest inflation figures from the Office for National Statistics. Prices were 2.7 per cent higher than in the same month a year ago, up from 2.3 per cent during March. The latest labour market data showed that wages grew 2.3 per cent in the three months to February. The jump in inflation was mainly driven by air fares they increase during the Easter holidays, which this year fell in April rather than March. Analysts had expected inflation to increase to 2.6 per cent. The news caused the pound to fall 0.54 per cent against the dollar from a value of $1.295. UK government bond prices fell, pushing the yield on 10-year gilts up by 2 basis points to 1.16 per cent. The retail price index, which is no longer used as an official measure of inflation but is used for some inflation-linked bonds, increased to 3.5 per cent in April from 3.1 per cent the previous month. Stagnant living standards have been the post-financial crisis norm in the UK, except for a brief period when falling oil prices helped to lift incomes in real terms. The latest data suggest that this growth is now over. It underlines the challenge facing the Bank of England, which must decide how to respond to simultaneously rising inflation and falling incomes. –CB Report
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turkey inks deal to produce 4 warships with pakistan n a sign of strengthening defense ties, Turkey and Pakistan have both inked a deal on to provide four corvettes to the latter. At a defense industry fair in Istanbul, the Turkish defence minister said, “We have signed an important agreement regarding the MILGEM project, which Turkey successfully exports abroad, and joint production in Pakistan.” Isik said that this was the first steps in a goodwill agreement and that the deal would help to make Pakistan’s navy force stronger. The deal is linked to Turkey buying 52 trainer aircraft from Pakistan. “We have targets with Turkey in the defense area to develop some of our joint initiatives,” said Rana Tanveer, Pakistan’s Defense Production Minister. –CB Report
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CAPE TOWN
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he discovery of the horns was made when the shipment was put through the scanning process by customs ofPicials. The South African Revenue Service’s (Sars) customs unit seized more than seven kilograms in rhino horns that were declared as “tea bags” at OR Tambo International Airport, Sars said in a statement. The discovery of 7.035kg of horn was made on Wednesday when the shipment was put through the scanning
process by customs ofPicials who observed that the images were consistent with rhino horns. Sars spokesperson Sandile Memela said: “Upon a physical inspection, the contents of the box were found to include eight pieces of rhino horn wrapped in foil. The rhino horn was concealed amongst packets of sweets and chocolates. The shipment was destined for Hong Kong via Qatar, Doha.” The found goods have been handed over for further investigation to the South African Police Service and the Directorate for Priority Crime Investigations (Hawks). Meanwhile, Counterfeit goods and drugs with a combined value of over R10,29 million were seized at OR
Tambo International airport on Saturday and Sunday, ofPicials said. Customs ofPicials opened various consignments from Hong Kong destined for different suburbs in Gauteng when the illicit goods were discovered, the South African Revenue Service (SARS) said in a statement. Cell phones, sneakers, shirts, tracksuit tops and other high-quality label goods were discovered at various airline cargo sheds. Clothes from a leading fashion brand weighing 775kgs were discovered in one consignment with an estimated value of R3 240 000. In a separate incident, a SARS detector dog unit intercepted a female passenger from Sao Paolo in possession of 6.945 kg cocaine worth R1 998 000.
Brazil police probe BNDeS loans to JBS
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razil federal police are investigating loans by development bank BNDES to JBS SA, a police source said on Friday, in the latest scandal encircling the world’s largest meat processor. Police had earlier said they would detain 37 people for questioning and conduct 20 search and seizure warrants as part of a probe into an unnamed meatpacker.
Starting in June 2007, BNDES subsidiary BNDES Participações SA handed out loans to fund 8.1 billion reais ($2.6 billion) worth of acquisitions of other meatpacking companies, police said in a statement. Police suspect fraud in those transactions, which were approved after the meatpacking company hired a consultancy owned by an unnamed lawmaker, the statement said. According to the police source, former Pinance minister Antonio Palocci owned the consulting Pirm. Representatives for JBS had no
immediate comment. BNDES did not immediately respond to requests for comment. Calls to a lawyer representing Palocci went unanswered. Over the last two decades, JBS relied on public support to fund vast expansion plans as one of the companies handpicked to be “national champions” under leftist Workers Party federal administrations. That strategy has come under scrutiny in recent months. Prosecutors said JBS’s parent, holding company J&F Participações SA, paid bribes to politicians to get in-
vestments from pension funds of state-run companies. JBS is also one of the targets of an investigation into alleged bribery of safety and health inspectors, which led several countries to briePly ban imports from Brazil. JBS has repeatedly denied any wrongdoing. Reuters reported on that JBS was considering postponing a New York listing of a global food processing unit originally expected for the second quarter given lukewarm investor feedback amid the scandals.
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Four held for defrauding three persons Tuesday May 23, 2017
Lahore
LAHORE: The Federal Investigation Agency (FIA) has arrested four persons for depriving three citizens of their hard earned money fraudulently. According to FIA spokesman, Malik Zohaib and Malik Shoaib, residents of Ghulam Muhammad Abad Faisalabad deprived Qari Ishtiaq Ali and Atif Shahzad of Rs 800,000 in the pretext of sending them Dubai for job. In another case, Sanaullah and Muhammad Ajmer, residents of Salam Bhalwal, Sargodha deprived Amjad Ali of Rs 400,000 in the pretext of sending him Italy for job.
chief collector Zeba Azhar to preside over collectors’ moot
customs submits interim challan in mobile smuggling case
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he investigation team of Customs Investigation and Prosecution (I&P) has submitted the interim challan against an accused who was arrested by the customs authorities from Sialkot. According to details available to Customs Today an accused was travelling from South Africa to Sialkot was intercepted by the customs ofPicials at Sialkot airport. Customs team during search of the luggage found 30 costly mobile phones hidden in baggage of Muhammad Sarwar. During hearing of the case customs defence lawyer said that the accused was caught red handed while he was making an attempt to smuggle costly mobile phones to
customs preventive collects Rs 25548m duty, taxes ollectorate of Customs Preventive has collected Rs 25548 million duty and taxes during the first ten months of financial year 2016-17. As per details, the Cpllectorate collected Rs6987 million customs duty during period under review against the proposed target of Rs7656 million. Similarly, the Collectoarte collected Rs 11886 million on account of sales taxes during the period under review against the assigned target of Rs 11562 million. On the other hand the Collectorate collected Rs 6505 million withholding tax WHT against the target of Rs 7502 million for July to April FY 2017. Likewise the Collectoarte collected Rs 170 million on account of federal excise duty (FED) during the first ten months against Rs129 million proposed target. Overall the collectoarte collected Rs 25548 million duty and taxes during the period under review. –CB Report
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Pakistan. Mobile phones that are being smuggled from other countries are also security risk he added. Muhammad Sarwar also Piled a petition for his post arrest bail that has also adjourned because of unavailability of prosecutor of the court. Meanwhile, The Special Federal Court of Customs Taxation and AntiSmuggling has approved a two-day physical remand of Mian Talat Mehmood, the managing director of M/s Orient Electronics, for his alleged involvement in mega tax evasion scam. Sources told Customs Today that the managing director of the leading electronic manufacturing company, M/s Orient Electronics, was arrested by Inland Revenue Department Lahore. Sources said that he was allegedly involved in a huge tax evasion. Sources also said that the total amount of the tax evasion is Rs 4 billion which is among one of the largest tax evasion cases of Lahore.
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hief Collector of Customs Central Region Zeba Hai Azhar is going to hold Collectors Conference of the Customs Central in Lahore on May, sources told Customs Today. The sources said that the conference will be held in Customs House and the agenda will include projected revenues for the 4th quarter and other concerning issues. The conference will also discuss antismuggling performance, audit of WeBOC clearance, recovery through auction, and Pinalization of provincial assessment. The ofPice of the chief collector has requested all the four collectors from Faisalabad, Multan, Customs Preventive, Customs Appraisement to attend the meeting on the given
date. The collectors will also present their presentations before the meeting will be held on May, the sources added. It was added that other mis-
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cellaneous issues would also be discussed in the meeting in order to achieve the current Pinancial year’s revenue collection target.
customs court sends accused on customs Appellate tribunal hears 16 cases Customs Appellate Tri- Directorate of Post Clearance Audit physical remand involved in smuggling hebunal’s division bench-II com- (PCA) Lahore versus M/s Tiamoor
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he Special Federal Court of Customs Taxation and AntiSmuggling sent Muhammad Riaz on a four-day physical remand in a notorious case of 14 kilogram of gold smuggling. Accused Muhammad Riaz was arrested by the customs authorities after the rejection of pre-arrest bail plea by the Supreme Court of Pakistan. Accused Muhammad Riaz is a main accused in the case who tried to smuggle the gold into Dubai. Earlier, the customs authorities have ar-
rested two female suspects involved in a smuggling of 14 kg gold and currency from Multan International Airport. The customs authorities at Multan International Airport recovered 14 kg of gold worn by both females in their hands in the shape of bangles (Kara) and anklets (Pazaib) along with 39,000 Saudi riyals and United Arab Emirates Dirham. The Multan customs had seized the gold and foreign currency worth Rs64.6million and lodged an FIR against both arrested women. –CB Report
prising Judicial Member Omer Arshad Hakeem and Member Technical Imran Tariq, heard 16 cases and adjourned all of them until the next hearing. A single bench of the Customs Appellate Tribunal, comprising Imran Tariq, heard six cases of Customs Multan versus Muhammad Naeem Bhatti, Muhammad Khalid Hussain versus Directorate of Intelligence and Investigation Multan, M/s J.P. Construction versus Customs Lahore, Muhammad ShaPique versus Directorate of Intelligence and Investigation Multan,
Enterprises. The division bench-II heard 10 cases, including Abid Shah versus customs Faisalabad, Javaid Khan versus customs Faisalabad, Gulistan Textile versus customs Multan, Shahnaz Perveen versus Directorate of Intelligence and Investigation Lahore. Furthermore, the tribunal heard M/s Cotton Craft versus customs Lahore, Raja Intezar Mehboob versus Directorate of Intelligence and Investigation Gujrat, Baram Khan versus Directorate of Intelligence and Investigation Lahore, customs. –CB Report
fto adjourns M/s Al-Shiekh trader’s income tax refund case
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LAHORE
SAJID NAwAZ
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he Federal Tax Ombudsman (FTO) postponed the hearing of an income tax refund case filed by M/s Al-Shiekh Traders Sargodha against the Regional Tax Office (RTO) Sargodha till the next date. FTO Consultant
Tariq Yousaf heard the case in which counsel for the appellant argued that the Regional Tax Office Sargodha has not released the refund to the petitioner since three years. Moreover, the RTO has been collecting excessive tax from the company for the last three years. On the extra collection, the company approached the officer con-
cerned of the Regional Tax Office many times for release of refunds but he did not address his complaint even after the passage of a reasonable time. Finally the plaintiff decided to file a case in the office of the FTO seeking intervention. The counsel appealed the FTO advisor to direct the RTO to clear the refund claims to the M/s Al-Shiekh
Traders. On the contrary, counsel for the RTO argued that after the complete examination of the record, the RTO will release the refunds to plaintiff. After hearing the arguments from petitioner and recipient, the Federal Tax Ombudsman adjourned the case by next date of hearing to present their arguments in the case.
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Five ships take berth at Port Qasim KARACHI: Five ships, C.V Suez Chanel, M.V Orion Ocean, M.T Chemroad Journey, M.T Silver Phillipa and M.T Methane Heater carrying containers, Coal, Palm oil, Diesel oil and LNG were arranged berthing at Qasim International Container Terminal, Pakistan International Bulk Terminal, Multi Purpose Terminal, FOTCO Oil Terminal and Engro Elengy Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority.Meanwhile five more ships CCNI Arauco, Maritime Yuan, CTG Argon, Good Hope Max, and Ali Kip with Containers, Palm oil, Soya Bean and Palm oil also arrived at outer anchorage of Port Qasim during last 24 hours.
port of Los Angeles monthly cargo volume jumps again he Port of Los Angeles is on track to beat last year’s recordbreaking volumes. In their monthly cargo report, port officials reported cargo volumes were up 8.9 percent in April compared to the same time last year and up 10 percent for the year to date compared to this point last year. Both Los Angeles and Long Beach saw a surge in volume during April, as overall seaborne import trade grew, according to Panjiva Research, a global trade data firm. Observers had been closely watching cargo volumes last month for signs about how new alliances among shippers may impact where vessels call. Some analyst suggested with fewer shippers, competition among the ports would be fierce and could
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hurt cargo volumes at one of the ports. But with container box imports at Long Beach also up 16.5 percent during the same month, it’s tough to draw too many conclusions. “It’s far too early to figure out the impact of the alliances,” said Jock O’Connell, a trade economist with Beacon Economics. “As we have seen in Europe. things can move one way and the next month in an entirely different way.” Exports at the Los Angeles port jumped 9.4 percent and total loaded containers rose 8.6 percent. Meanwhile, A carrier of refrigerated goods has added a weekly run at the Port of Wilmington, the N.C. State Ports Authority said in a release Thursday. StreamLines added Wilmington to its Blue Stream weekly service and will begin calling at the port on June 5 when its “Georgia Trader” ship docks at the port. –CB Report
Ports & Shipping
port’s china strategy reaps $3 million sponsorship deal BEIJING
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ort Adelaide will unveil a $3 million sponsorship deal with Chinese Pirm MJK International Holdings at a gala dinner on the eve of tomorrow’s clash with the Suns in Shanghai. The signing gives substance to the Power’s drive into China and adds to multi-million dollar deals already struck with Ausgold Mining Group and Chinese property developer Shanghai CRED. The three companies sit atop a list of 20 sponsors that have Plowed from Port’s China plan; a strategy in which tomorrow’s game at Jiangwan Stadium has been the catalyst in something that goes beyond Australian football. Port chairman David Koch and chief executive Keith Thomas have always said sports diplomacy is at the heart of their China blueprint and now they’re delivering the goods for their club. “It conPirms the potential of our China engage-
ment strategy,” Thomas told The Weekend Australian yesterday. “The strategy’s much more than the game. “As a result of the game we’ve been able to attract 20 partners to support the game (tomorrow). Twelve of them are Chinese and are new to the game.” MJK International Holdings Group a group that has ecommerce, wine, real estate, tourism and “cultural artefacts” divisions was introduced to Port Adelaide when the Power hosted Chinese Premier Li Keqiang at the
Sydney Swans match in the opening round of the season. MJK opened a Sydney ofPice earlier this year and its chairman Zheng Junping, his family and one of his directors visited Adelaide for the Pirst time last weekend. He attended the Port-Eagles game at Adelaide Oval and can’t have been too disappointed with the stadium, city or the hosts’ 10-point loss given he will sign a three-year sponsorship deal at the Portman Ritz-Carlton Hotel in Shanghai tonight.
Tuesday May 23, 2017
georgia port welcomes giant ship he largest cargo ship ever to visit ports on the U.S. East Coast is so long the Statue of Liberty and Washington Monument could fit endto-end along its deck and still leave room for Big Ben. The COSCO Development arrived Thursday at the Port of Savannah after cruising past dozens of onlookers who cheered and took photos of the mammoth vessel from Savannah’s downtown riverfront. Its first East Coast voyage marks a new era for U.S. ports that, despite years spent anticipating the supersized ships, will struggle to accommodate them without major infrastructure improvements. “It takes up the whole river!” Andrew Evans, who served as a ship’s officer in the 1960s, exclaimed to his wife as the ship slowly lumbered into view, the cargo containers stacked on its deck towering above trees on the shore. “The largest ships I was on, you could fit 10 of them on that ship,” Evans said. “Maybe more.” At 1,200 feet bow-to-stern, the COSCO Development is longer than the aircraft carrier USS Gerald R. Ford. –CB Report
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Sydney harbour ports Day returns with full slate A SYDENY
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s sure as the return of robins in spring, Sydney Harbour Ports Day is back for another year. Registration has been strong for event that annually discusses the potential opportunities for Sydney harbour and how it can play on its strength for economic gain. The day’s events will take place at the Joan Harriss Cruise Pavilion from 7:30 a.m.-7 p.m. Edward Schmeltz, senior vice-president with AECOM, will speak on the basics of modern container terminal development during the Ports Day luncheon. AECOM is the largest transportation engineering Pirm in the United States and Schmeltz has worked on some of the world’s largest marine projects. Dr. Michael Tretheway, chief economist and chief strategy ofPicer with InterVISTAS, will give
the highlights from the economic impact study on the proposed container terminal. Andrew Prossin of One Ocean Expeditions will talk about Sydney as a homeport and his belief that Sydney has the potential to become a “Gateway to the Arctic.” An update will be given on the second berth project that has earned Pinancial support from all levels of government as well as support from the community. The concept “build it and they will come” panel discussion will shine light on the harbour’s potential to expand and enhance waterfront opportunities. This panel will discuss some steps needed to become a thriving waterfront. The event will end with the annual lobster dinner and Cape Breton ceilidh. For this, advance tickets can be purchased by anyone interested in kicking off the lobster season while mingling with delegates and members
of the business community. Meanwhile, Containerized 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 ofPicials 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 Pirm 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. The nation’s largest port for con-
tainer 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.
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Faisalabad customs seizes smuggled tyres worth Rs420000 FAISALABAD: The customs intelligence and investigation confiscated smuggled tyres valued Rs420000 involving duty and taxes of Rs 400000. The customs staff intercepted a Hyundai Shehzore with registration No: FSL-7188 near Truck Stand, Jhang Road, Faisalabad, and recovered a foreign origin (F/O) new 14 tyres made of China. The tyres were being transported from Lahore to Faisalabad. The team asked driver Munawar Hussain son of Ghafoor Ahmed to produce documents regarding the legal import of the items.
Tuesday, May 23, 2017
CUSTOMS BULLETIN
Dg Valuation revises customs values of shade net vide VR No 1160/2017 KARACHI wAQAR AhMeD ANSARI www.customsbulletin.com
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he Directorate General of Customs Valuation has revised the customs values of shade net (HDPE) Valuation Ruling No 1160/2017 under Section 25A of the Customs Act, 1969. Local manufacturer of shade net (HDPE) M/s. Kolachee International vide their letter dated 28-03-2017 lodged a complaint of under invoicing regarding import of shade net (HDPE) H.S code 5608.1900 and requested for determination of fair values. This prompted the initiation of a detailed exercise for determination of values of the said item under section 25-A of Customs Act, 1969. Meetings were held on 12-042017 & 02-05-2017 with stakeholders including importers and local manufacturer cum complainant. None of the importers participated in the subject meetings nor was any written reply submitted by them, while local manufacturer M/s. Kolachee International participated in the said meetings and forwarded working comprising manufactur-
ing cost of shade net. As per the working submitted by M/s Kolachee International,
constituent raw materials used for the manufacturing of shade net are HDPE (91.50 %), UV (2.50 %)
and master batch (6%). In this regard, the value of HDPE is taken from Scan Prices (March 16-22
2017), whereas applicable values of UV and master batch are taken from Valuation Ruling No.778/2015 dated 07.12.2015 and Valuation Ruling No. 786/2016 dated 01.01.2016 respectively. Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular and sequential order to address the particular valuation issue at hand. The transaction value method as provided in SubSection (1) of Section 25, found in applicable in the light of the wide variety of manipulated invoices produced at import stage and as no invoices were reported to be found inside the containers (as per the international trading standards), thus, requisite information required under law was not available to arrive at the correct transaction value. Identical / similar goods value method provided vide Sub-Sections (5) & (6) of Section 25 ibid were examined for applicability to determine Customs value of subject goods, this data provided some references. However, it was found that the same cannot be solely relied upon due to the absence of absolute demonstrable evidence of qualities, and quantities of commercial level 0 etc.
M/s Yasin & Sons approaches Shc for restoration of St registration KARACHI
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/s Yasin & Sons moved the Sindh High Court (SHC) seeking restoration of its sales tax registration number suspended/blocked by the Commissioner Inland Revenue Zone-II RTO Karachi. Counsel for petitioner stated in his constitutional petition that he
has always fulPilled all the liabilities and requirements properly but on June 05, 2014 ofPicials of the tax authorities blacklisted the petitioner without any lawful authority. He submitted that being aggrieved, he approached the Federal Tax Ombudsman and Piled an appeal which had given Pinding/recommendation that passing of blacklisting order by Commissioner Inland Revenue is beyond time and revisit Commissioner’s blacklisting order in terms of Section 45 A of act, the Federal Tax Ombudsman also restored the sales tax registration.
According to the counsel that complainant was informed that sales tax registration has been again suspended/blocked by the said respondents. Citing to Chairman Federal Board of Revenue (FBR) and Commissioner Inland Revenue Zone-II RTO Karachi as respondents, counsel pleaded with the court to kindly declare the act of the respondents as illegal, mala Pide and arbitrary. He also pleaded with the SHC to set aside the impugned notice and restore its sales tax registration number. Meanwhile, M/s Master Motor
Corporation (Private) Limited has moved Sindh High Court (SHC), challenging impugned notice issued by assistant commissioner Inland Revenue Audit Unit-IV, Zone-II LTU Karachi for recovery of the alleged evaded sales tax and penalty. In its constitutional petition, the company stated that it is engaged in the lawful business of assembling and sales of light trucks of Chinese brand and always pays all liabilities properly. According to the petitioner, the respondent issued a show cause notice to it under section 4 (2) of the Sales Tax Act 1990, alleging a
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
few discrepancies, therefore, the petitioner submitted its reply along with all the relevant documents. Having found the reply unsatisfactory, the officials of the tax authority issued the notice requiring the petitioner to pay the evaded sales tax along with penalty. He further submitted that being aggrieved, it moved an appeal before commissioner Inland Revenue Appeals-II Karachi which is still pending for disposal, and however, during pendency of such appeals, petitioner is being threatened by officials of the tax department.