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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

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Karachi, Fri May 25, 2018

PESHAWAR

NADIR KHAN

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ustom ofTicials and local police foiled major bid of non-customs paid mobile smuggling to Peshawar via Khyber agency and seized 883 mobiles in Sirband area on Wednesday. SHO Sirband, while addressing

press conference, told media persons that they received tipoff from the higher authorities regarding the smuggling of noncustoms paid mobile Khyber Agency and Sirband area to Peshawar. He said that acting upon the information police Tlag-down a suspected vehicle and after searching various cavities of the car, police recovered 883 mobiles phone having same IMEI

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numbers. He said that these mobile phones would be handed over to customs department for further action. The accuse Shaukat has confessed that he smuggled these mobile via Afghan border which was aimed to evade customs duty. The porous Afghan border is frequently being used for smuggling activities however after border management this trend has been discouraged to great extent via Torkham border. Some other intricate routs are being used for smuggling of mobiles and auto-parts.

‘FBR announces to increase limit of punishment in TP related crime’

Customs Export recovers evaded amount from two companies

Collector Preventive Faiz Ahmad transfer nine superintendents

DG Valuation Surriya rejects revision petition filed against VR No 1217/2017

Gwadar Customs seizes huge quantity of narcotics worth Rs 5 million

FBR has increased the limit of punishment and the penalty in the crime | SEE PAGE 02 |

Customs Export recovered evaded amount of taxes and duties of Rs 11.08 m | SEE PAGE 03 |

Customs Preventive issued notification to transfer nine superintendents | SEE PAGE 04 |

DG Valuation has rejected a revision petition filed against VR No.1217/2017 | SEE PAGE 09 |

Customs Collectorate seized huge quantity of bottle of wines and hashish worth Rs5m | SEE PAGE 16 |

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Appellate Tribunal settles case filed by Lucky Enterprises against DG I&I Friday, May 25, 2018

ISLAMABAD: Customs Appellate Tribunal disposed of M/S Lucky Enterprises case filed against Collectorate of Customs and Directorate General of Intelligence and Investigation, Islamabad. Customs Appellate Tribunal’s single bench comprising Member Syed Muhammad Anwar had reserved the decision during last hearing. The tribunal issued directives to adjudication to rehear the matter as appellant’s application was pending before department’s official. M/s Lucky Enterprises, Haq Nawaz and Wasif Hussain had filed these cases.

Islamabad

FBR announces to increase limit of punishment in TP related crime: Khokhar

Rs5b tax relief in Finance Bill to harm revenue growth ISLAMABAD

ISLAMABAD

CUSTOMS BULLETIN REPORT

M FAIZAN

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he tax relief worth around Rs 5 billion provided in the Finance Bill 2018 would have damage revenue growth during the next fiscal year (201819). Sources said that the government introduced diﬀerent relief measures in the Finance Bill 2018 in shape of reduction in tax rate on fertilizer and others. After withdrawal of Health Levy on Tobacco at Rs10 per kg, the government has increased Federal Excise Duty (FED) rate on cigarettes so after withdrawal of levy there would be neutral impact on revenues. With the amendments in the Finance Bill 2018, the net negative impact will increase from Rs91.179 billion to Rs96.179 billion while the impact of customs duty amendments on revenue is not yet known.The government’s decision to reduce sales tax on major input (rock phosphate) of fertilizer sector from 17 percent to 10 percent will have around Rs 2-3 billion impact on revenue; and reduction in federal excise duty (FED) on air travel from Rs2,500 to Rs2,000 per ticket would cause revenue loss of Rs1.5 billion. Reduction in the minimum tax for commercial exporters to 5 percent from 6 percent will be neutral, said the FBR officials as it would encourage filing of income tax returns and thereby contribute to revenue.

ederal board of Revenue (FBR) has increased the limit of punishment and the penalty in the crime related to transshipment. A new law has been introduced in this regard and FBR high ups hoped that after this initiative transshipment related crime percentage will be reduced. Sources told that customs authorities received complaints that facility of transshipment was misused badly. After changes in the law, Member Customs Zahid Khokhar has directed to all related staff to keep eyes open regarding transshipment facility and do not take illegal beneTits and without discrimination ,strict checking system should apply in this regard. Sources told that if any goods which are loaded for transshipment, are pilfered, replaced en-route or failed to reach the port of destination, or any person transships goods not allowed to be transshipped, such goods and the conveyance illegally carrying these goods shall be liable to conTiscation and any person including the custodian and the bonded carrier shall face penalty not exceeding ten times the value of the goods and he shall further be liable, upon conviction by a special judge, to imprisonment for a term not exceeding seven years.

The law further explained that if any person contravenes any rule relating to transshipment other than

mentioned in above clause, such person including the custodian and the inland carrier shall be liable to

penalty not exceeding Tive hundred thousand rupees or three times the amount of duties and taxes involved.

FBR’s report on receivables for PAC at final stage

ISLAMABAD

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he Federal Board of Revenue (FBR) is preparing to present a comprehensive report along with breakup of the receivables from different kinds of clients; commercial and industrial before the Public Accounts Committee in the upcoming meeting. Receivables are increasing day by day because of the delayed judg-

ments in the pending case with relevant courts. In this regard, FBR’s relevant wing is compiling data from the Tield formations and large taxpayers’ units and legal wings. The report is likely to be given Tinal touches on Monday because the meeting is scheduled to be held on coming Tuesday. PAC in its meeting held in the beginning of current month directed FBR to furnish with a detailed report on this issue. A source at FBR’s Taxpayers’ Audit Unit told Customs Today

that PAC would also discuss the detailed report of the audit on decrease in tax collection by FBR from tobacco manufacturing industry in the light of previous. The previous report stated that tax system in Pakistan was operating on self-assessment basis aimed at promoting voluntary-compliance, documentation and self-policing and tax audit was an effective instrument of control with the FBR through which compliance level is monitored. “Through audit, the

FBR checks whether a registered person/taxpayer has correctly determined his tax liability, deposited due tax in the national exchequer and is making adjustments of input tax etc, to which he is legally entitled,” the source added, saying that in order to safeguard the government’s interests, FBR had established a central risk based and automated Tax Audit Management System (TAMS), which was constantly reviewed and improved.

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Court awards jail term to suspects booked for HSD smuggling KARACHI: Customs Court Judge Syed Faiz Rasool Rashdi on Thursday awarded 15 days imprisonment and fine of Rs1,00,000 to suspects namely Noor Hassan, son of Akram Khan and Muhammad Raza, son of Jahangir Khan, who was booked in a case of -attempting to smuggle non-duty paid 18,000 liters high speed diesel (HSD). The judge observed in its order that “I would like to take into consideration the object of the provision of section 35 CRPC which provides that the purpose of sentence is twofold, firstly it would create such atmosphere which could become a deterrence for the people who had inclination towards crime, secondly to work as a medium in reforming the offender.

ASO Preventive seizes betel nuts worth Rs3.13 million

Friday May 25, 2018

Karachi

Customs Export recovers evaded amount from two companies

KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he Customs Preventive’s AntiSmuggling Organization (ASO) has seized large quantity of betel nuts worth Rs3.13 million. Information was received through Collector Preventive Dr Iftikhar that attempt would be made to transport betel nut into the city. Deputy Collector Mohammad Faisal tightened the vigilance and during the course a suspected truck was intercepted near Ghani Chowrangi area. The detailed examination of the vehicle found bags of betel nuts hidden under the bags of dry coriander seeds. The goods have been seized and investigations are under way.

PCA detects tax evasion of by M/s Wajid Shamsi KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he Directorate of Customs Post Clearance Audit (PCA) detected duties and tax evasion of Rs 7.80 million by M/s Wajid Shamsi Computer Accessories, it is learnt here. Sources told Customs Today that M/s Wajid Shamsi Computer Accessories imported a consignment of diﬀerent kinds of computer systems, mother boards, rams, power supplies and casings, and got it cleared from the QICT Karachi vide GDs on August 12, 2017 by paying customs duty very low at 6 percent after claiming the benefit of the SRO 579/2007. However, the subject items were correctly classifiable under the PCT 2548.2504 attracting customs duty at 10 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 7.80 million.

KARACHI

WAQAR AHMED ANSARI www.customsbulletin.com

he Customs Export recovered evaded amount of taxes and duties of Rs 11.08 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s NCZ Enterprises availed undue beneTits and concessions by importing color printing chemicals by misusing the SRO 562 through Examiner Agha Najeed Aiwan on 9th February, 2018. Sources told that the company was allegedly involved in tax evasion of Rs 8.58 million. Investigations were continued and after detecting the tax evasion, the Customs Export issued it with a Tinal notice on 2nd May 2018 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s NCZ Enterprises deposited the evaded amount in the ofTicial account of the Customs Export on 17th May, 2018. Another company, M/s Surti Fertilizer also cleared Rs 2.50 million of taxes and duties. Sources told that M/s Surti Fertilizer also availed undue beneTits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities served on it a Tinal notice on April 30, 2018,after Company receiving notice, the man-

agement of the M/s Surti Fertilizer deposited the evaded amount of taxes on 17th May 2018. Meanwhile, The Customs Export has recovered evaded amount of taxes and duties of Rs 7.80 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Humair Sanitary and Pipes Store Karachi availed

After receiving the tax notice M/s NCZ Enterprises deposited the evaded amount in the official account of the Customs Export on 17th May, 2018

Court seeks charge sheet in Suzuki jeep case

KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

ustoms Court Judge Syed Faiz Rasool Rashdi directed investigation ofTicer to complete investigation and submit charge sheet against absconder suspect namely Adnan, son of Abdul Shakoor, who was booked in a case of attempting to smuggle non-duty paid Suzuki Jimmy/Sierra jeep registration number BG-0106.

During the hearing, investigation ofTicer of Customs Collectorate of Preventive Anti-Smuggling Organization NMB, Wharf, Karachi submitted First Information Report (FIR) before the court and argued that on a credible information, a team of customs department reached at vicinity of Clifton area, Karachi and found that the above mentioned vehicle was moving on road at Boat Basin, the vehicle was stopped and the occupant/driver later on identiTied as Adnan was asked to produce the doc-

uments regarding the import/procurement/purchase of the said vehicle. According to the investigation ofTicer, driver did not produce any lawful documents, therefore, as there existed information. About smuggled/non-duty paid vehicle, the said vehicle was taken into custody, driver Adnan informed the customs department that he is working as driver on the vehicle and the owner of the vehicle in one namely Faisal and he would produce required documents within three days.

undue beneTits and concessions by importing Hard PVC Pipes and others sanitary items by misusing the SRO 569 through Examiner Mateen Ayoub on 7th January, 2018. Sources told Customs Today that the company was allegedly involved in tax evasion of Rs 4.25 million. Investigations were continued, after detecting the tax evasion, the Customs Export issued it with a Tinal notice on April 28, 2018 to deposit the evaded amount within 14 days.

Rupee depreciates to Rs118.45 in market he Pakistani rupee continued to shed value against the US dollar in open market and remained firm in interbank. As per the local money market, the greenback gained 35 paisas in open market for buying at 117.90 and for selling at 118.45, while it remained unchanged in interbank for buying at 115.50 and for selling at 115.70.

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Customs Appellate Tribunal rejects appeal in imported PVC Flex Sheets Friday May 25, 2018

Lahore

LAHORE: Customs Appellate Tribunal has dismissed appeal in seized imported three consignments of PVC Flex Sheets from China. The same appeal was ﬁled by Collector of Customs, Appraisment Lahore against Khurram Azhar and others. Omer Arshed Hakeem, member judicial bench-II heard the arguments and examind the record produced by the appellant and respondent before the court. After complete hearing of case, judgement is passed with remarks that appellant has failed to prove the allegations and same appeal is dismissed.

Customs Appellate Tribunal set aside ONO, remands back appeal LAHORE

SAJID NAWAZ

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ustoms Appellate Tribunal has set aside impugned order and remanded back appeal Tiled by M/s H Ali Construction against the Collector of Customs Adjudication Lahore in seized Nissan Prime Mover Truck. Omer Arshad Hakeem member judicial bench-II heard the arguments from appellant and respondent and decided the case with remarks that both order passed by earlier authorities are set aside and appeal is remanded back to the additional collector of Customs Adjudication Air Freight Unit (AFU) Cargo Complex Allama Iqbal International Airport Lahore. The member also mentioned in the judgment

Late Customs Inspector M. Nadeem laid to rest irectorate of Customs Intelligence and Investigation (I&I) inspector was laid to rest at his ancestral graveyard in Faisalabad. Earlier the Namaz-i-Janaza of deceased inspector was offered in the main mosque of Income Tax Colony. Large number of deceased friend, relative and colleagues attended his Namaz-i-Janaza and funeral. Prominent among those who attended his Namaz-i-Janaza included Collector Appraisement Jamil Nasir, Customs Inspectors Mian Yasin, Asif Jah, Amir Jillani, Hassan Mehmood, Yousaf Ansari, Habib Yousaf, Amir Moeen, Chaudhary Javed, Sheikh Waseem, Faisal Mir, Mohsin Akhtar. Additional Collector Rashid Munir, Deputy Director Customs Intelligence and Investigation Asad Ali, Inspector Tanveer Virk and large number of area notables attended his funeral. –CB Report

that the above said authority will decide the matter within thirty days. As per brief history of case, a Nissan Prime Mover truck imported from Hong Kong was impounded by the customs ofTicers. Later on, during the physical veriTication of same vehicle were seized under the section 32(1) of Customs Act 1969. After a show cause notice, Adjudication proceedings were culminated and order in original was passed with remarks that vehicle is conTiscated outrightly. Being aggrieved with order, appellant was challenged the order before the Customs Appellate Tribunal on the grounds that impugned order is being deviod of merit and liable to set aside. The order passed in haphazard manner without applying judicious mind and against the fact of case. On the other side, respondent denied allegations by the appellant and appeal for the rejection of case.

Collector Preventive Faiz Ahmad transfer nine superintendents LAHORE

M HAYAT

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ollectorate of Customs Preventive Collector Faiz Ahmad issued notiTication to transfer nine superintendents with immediate effect. According to notiTication no: 01/HRD-Estt/PF/82 Superintendent Nasir Tarar who is currently performing his duties at Anti Smuggling Organization is transferred to Airport TrafTic, Superintendent Nayyar Sultan who is currently posted at General Post OfTice is hereby to Headquarters (Technical branch). The notiTication further stated that Superintendent Khalid Mohammad Khalid Zaidi, Superintendent Abdul Naeem, Superintendent Syed Hassan Abbass Bukhari and Superintendent Agha Qadeer Haider is who are currently on training

course will report for duty at Air Freight Unit, while Superintendent Abdul Shakoor Khan is transferred to Anti Smuggling Organization. Superintendent Mazhar Abbas Shah is transferred to Airport TrafTic while Superintendent Javed Iqbal

Mian is hereby transferred to General Post OfTice. The notiTication stated that all employees stand relieved from their duties with immediate effect with the direction to report at their new place of posting.

Customs AFU asks CAA to provide DC, assistant collector transferred electricity generators at cargo section ollectorate of Customs Pre- Freight Unit.

he Customs Collectorate of Preventive Air Freight Unit (AFU) at Allama Iqbal International Airport has written a letter to Civil Aviation Authority (CAA) to provide them a power generator because of problems during load shedding. According to details available to Customs Today that cargo section is facing serious issues due to lack of backup power during load shedding and power failure. Now the AFU has written a letter to CAA for provision of power

generator. Sources told that AFU is working in a building which is a property of Civil Aviation Authority so to avoid problems during power failure CAA should provide them a power generator. It is pertinent to mention here that the customs services were failed at Allama Iqbal International Airport on Wednesday for more than 10 hours due to breakdown. Customs pPreventive was failed to enter data of import and export. –CB Report

ventive Collector Faiz Ahmad has issued a notification for transfer of deputy collector and assistant collector with immediate. According to the notification Deputy Collector Naveedur Rehman Bhagvi who is currently posted at Air Freight Unit of Allama Iqbal International Airport is hereby transferred to Railway Station T-10 while Assistant Collector Salman Javaid who is currently performing his duties at Land Freight Unit (LFU) and Railway Station Wagha is transferred to Air

Another notification stated that Additional Collector Preventive Ms. Tahira Javaid is hereby assigned the charge of Railway Station T-10 and General Post Office (GPO) until further orders. It is necessary to mention here that Collector Preventive Faiz Ahmad adopted a comprehensive strategy to enhance to performance of the Collectorate. Sources told that due to this policy there is marginable decrease is being witnessed in the smuggling attempts in the region.–CB Report

FTO orders to conclude arguments in tax refund appeal

LAHORE

CUSTOMS BULLETIN REPORT www.customsbulletin.com

ederal Tax Ombudsman (FTO) Advisor Haji Ahmed has heard a case Tiled by owner of M/s Sheffat Trading Company against the Regional Tax OfTice (RTO-II) Lahore and adjourned the same until the next date of hearing. The FTO

also ordered the counsels to conclude argument on the next date of hearing. During the proceedings of case, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant since last two years. He said the RTO-II collected excessive taxes from the company during the last two years. The petitioner approached the ofTicials concerned

several times for the release of refunds, but the RTO ofTicials failed to clear refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking intervention in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said that delay in release of refunds put burden

on taxpayers, adding that the RTO-II should make audit of the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO-II argued that the appellant has not submitted all record to the ofTice for claiming refunds. If appellant provides the accurate record, the RTO-II will release refunds after a proper assessment, he added.

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ISLAMABAD

M ARSHAD

www.customstoday.com

he Federal Board of Revenue (FBR) Wednesday said that it had taken numerous measures to check the smuggling of foreign brands of cigarettes; however, lack of required enforcement staff and infrastructure smuggling of illegal brands continued. Currently as stock of illegally smuggled cigarettes worth Rs 1.5 billion is in the custody of FBR ofTicials which reTlects the untiring efforts in this regard. While responding to the special audit report on the causes of decline in tax collection of tobacco sector here at Public Accounts Committee of the Parlia-

at FBR ates th t s r e urth ual port f nt ann e The re m e l deral mp cco fe must i a b o t to they ments o that s s adjust e t a cco duty r e toba h t s excise e s eas east a in incr re at l a t result a h es t capita ct pric in per d e produ s a e as incr es large incom

ment, FBR members Inland Revenue Dr. Muhammad Iqbal, Administration Tasneem Rehman along with other higher ofTicials were of the stance that besides FBR, other administrative organs of the state were also equally responsible for checking the sale of illegally smuggled cigarettes. They were also of the view that third tier slab of tax on tobacco sector was introduced through Tinance bill 2017 by the parliament therefore it would be unjust to hold FBR along responsible for the decline of tax revenue collection from the tobacco sector. The copy of the report available with Customs Today has proposed that FBR must rationalize the federal excise duty (FED) which signiTicantly raises cigarettes prices and reduces tobacco use. FBR must also take adequate measures to check illicit trade comprising forfeited brands and non-duty

paid sale of cigarettes. FBR must strengthen tobacco tax administration, increase enforcement and tax duty free sales of tobacco products in order to reduce tax evasion and avoidance. The report further states that FBR must implement annual adjustments to tobacco federal excise duty rates so that they result in increases the tobacco product prices that are at least as large as increased in per capita incomes. FBR must monitor the processing of cigarettes at ten Green Leaf Threshing (GLT) units with withholding tax at the rate of 5% which can further be increased up to 25% at this initial stage of tobacco processing in GLT units. It will wipe out all the incentives to produce illicit cigarette because these ten GLT units can easily monitored and the opportunity to avoid FED after manufacturing of cigarettes will be no more.

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Friday, May 25, 2018

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EDITORIAL

Economy not ready to take fresh start

he government ministers are posing rosy picture of the economy, as many indicators are showing signs of recovery, but the country still has to go a long way to achieve macroeconomic stability. The world financial institutions had projected six percent growth in the gross domestic product, but at least 5.6 percent is expected to be achieved during the current fiscal year. The overall economy of Pakistan is not performing well and is continuing to face internal and external challenges. The chaos on the political horizon has adversely aďŹ&#x20AC;ected the pace of development in the various sectors of the economy. The PML-N government under Nawaz Sharif had claimed it will end energy shortage and incessant power supply will be ensured to the industry, but load shedding has again started haunting the industrial sector. Exports have picked up to some extent and it is now up to the government to sustain its policies. There is modest increase in inflation while growing fiscal and current account deficits are appearing as challenges in the coming months. The prime minister has launched tax amnesty scheme to bring the non-filers into the tax net. However, there is no change in standard operating procedure and this could foil all the attempts to regularize the tax system. The policymakers take the issue of structural reforms as certain steps to enhance the realm of indirect taxes. Otherwise, it is diďŹ&#x192;cult to avoid taxes if bank accounts of every individual are classified and closely monitored. The overall performance of the government remained subdued as it has failed to achieve any of the targets. After assuming the oďŹ&#x192;ce, the former prime minister had declared that the only motto of his government would be business, business and business. Despite himself as a businessman, Sharif could not make any progress in any sector of the economy and even failed to streamline the administrative affairs. When administration is weak and incapable, no policy can achieve the desired results. The mandate of this government is going to end in a few months, but it is imperative for the mainstream political parties to do some homework before elections. The country needs reforms not only in the administration and management sectors, but also in the departments and provinces.

Financial sector challenges T

LAHORE

CUSTOMS BULLETIN REPORT www.customstoday.com

he State Bank of Pakistan has unexpectedly left its benchmark interest rate unchanged after it moved the rates up 25 basis points in January this year. It was the first increase in more than four years. The national currency has been devaluated twice during the period and the hypothetical approach of the policymakers is drifting the economy toward precipice. It is yet to be seen how often they will ignore the ground realities and bag feathers of failures after failures in their caps. The political chaos, religious intolerance, foreign interference

and many other malaises are knocking the door of national security. According to the experts, improvements in exports and expected increase in the flow of remittances into the country would push medium-term economic growth and recent flexible adjustments in exchange rate would not pose any risk to financial stability. Despite the fact most of the regional economies are doing well, the economy of Pakistan suffers current account deficit which has risen by 50 percent in eight months and inflation has been subdued at 3.8 percent since October. But as a result of devaluation, the worth of bank deposits of millions of accountholders has declined and

the people, who had invested in the investment schemes, have lost a good chunk of their money in the process. It has made the whole exercise of saving schemes invalid. Some experts do not see any risk of unbridled inflation, but ground realities speak in the clear terms. The low currency value will automatically push the rates of various commodities up. The hypothesis that the low currency value will increase exports and curtail trade deficit will backfire as it will increase import bill. The government is expected to announce federal budget next month in the last leg of its five-year term and the general elections are expected in Au-

gust. However, growing burden of debt, shrinking foreign exchange reserves and deteriorating financial situation could push the government to look toward international financial institutions. It is dilemma of this nation that anti-national elements, criminals and wiz-kids go on the rampage during the days of transition of power from one government to another. The national institutions, including the State Bank of Pakistan, should have to be strengthened to foil their attempts. The devaluation of rupee was not a wise decision and sooner the government reverse it the better. Otherwise, the financial situation could go out of control in the near future.

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Customs PCA detects tax evasion of Rs12.58m by M/s Magnetic Printers KARACHI: The Directorate of Customs Post Clearance Audit detected duties and tax evasion of Rs 12.58 million by M/s Magnetic Printers, it is learnt here. Sources told Customs Today that M/s Magnetic Printers imported two consignment of heavy commercial tuners and erasing parts and got it cleared from the PICT Karachi on 18 November 2017, by paying customs duty at 10 percent after claiming the benefit of the SRO 568/2007. However, the subject items were correctly classifiable under the PCT 3698.2107 attracting customs duty at 14 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 12.58 million. The goods were cleared by Appraiser Ishtiaq Wajid.

Customs to implement electronic data exchange with China KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

akistan Customs is all set to implement electronic origin data exchange under China-Pakistan free trade agreement (FTA), which would enable real time recording of trade between the two countries and help curb revenue evasion. Directorate General of Reforms & Automation has developed the software in this regard and user acceptance testing by Trade Development Authority of Pakistan (TDAP) has also been concluded. Presently, the testing of electronic message exchange through the software is in progress between the technical teams of China and Pakistan. The system shall be available for live data exchange upon completion of testing. Imports from China constitute a significant part of Pakistan’s total imports, which opened doors for under-invoicing aimed at revenue evasion as well as over-invoicing aimed at moving out for-

Friday May 25, 2018

National

DG Valuation Surriya rejects revision petition filed against VR No 1217/2017 D

KARACHI

WAQAR AHMED ANSARI www.customsbulletin.com

irector General Customs Valuation Surriya Butt has rejected a revision petition Tiled against Valuation Ruling No.1217/2017 and upheld the values of Whey Powder determined vide the said valuation ruling. Source told that M/s Naseem Traders, S J K & Sons and others approached Director General Customs Valuation asking that the Valuation Ruling No.1217/2017 does not cover the present Tluctuation of prices or international market which have been reduced to about half of the prices. Director General noted importers had failed to prove with conclusive evidence that the values worked out in the impugned ruling were on higher side. On the other hand, the department presented details of valuation exercise conducted to determine the values of Whey Powder. Perusal of case record and the defense of the department reveal that the Directorate of Customs Valuation while issuing the impugned valuation ruling associated the im-

porters including the petitioners. Further, the values of subject goods have already been rationalized by the department while revising the previous Valuation Ruling and notifying the impugned ruling. Meanwhile, The Directorate General of Customs Valuation has revised the customs values of High Impact Polystyrene Sheets (HIPS) Valuation Ruling No: 1303/2018 under Section 25A of the Customs

Act-1969. Earlier the customs values of HIP Sheets were determined vide Valuation Ruling No.327/2011 dated 28.05.2011. As the existing valuation ruling was very old and required to be revised in line with the prevailing prices in the international market, therefore, this Directorate General initiated an exercise for determination of the Customs Values of the High Impact Polystyrene

Sheets (HIPS)in terms of Section 25-A of the Customs Act, 1969. Several meetings with stakeholders including importers and representatives from were held to discuss the current international prices of the subject goods. Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained.

SHC seeks comments on petition seeking release of consignment eign exchange in an organized manner. Recently, Pakistan Customs detected large scale money laundering through gross over invoicing of solar PV panels imported from China, and advocated concerted eﬀorts involving State Bank of Pakistan (SBP) and by extension commercial banks. Earlier in June last year, Pakistan Solar Association (PSA) in their representation to Customs authorities shared actionable information regarding money laundering through over-invoicing of solar PV panels and requested investigation into the matter. The investigations had revealed that the said goods were being imported into Pakistan from China at double the rates prevailing in the international market.

KARACHI

M B RANA

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he Sindh High Court (SHC) directed customs department to make sure Tiling their comments on a constitutional petition Tiled by M/s Al-Amna International seeking release order of its consignment of Lollipops stopped by customs department due to disputed valuation, a two-member bench heard the matter. During the hearing, counsel for the customs department seeks further time to Tile comments, therefore, court granted time and adjourned the matter. Earlier, counsel for the petitioner stated that it is engaged lawful commercial import of food stuff and imports these products from various countries, it imported a consign-

ment of lollipops from Turkey according with @ US$ 0.99 KG and Tiled goods declaration, however, ofTicials of the customs department are not deciding valuation of above mentioned goods. He said that petitioner is ready to submit differential

amount Rs. 1,357,396 before the nazir of the SHC, till the Tinal disposal of this revision application. Citing Sectary Revenue Division, Chief Collector of Customs Model Customs Collectorate Appraisement East and others as respondents, he

pleaded the court may declare that act of the customs ofTicials is illegal, mala Tide and arbitrary, he also pleaded the court may release its consignment immediately. Meanwhile, The Sindh High Court has disposed of suits Tiled by Digicom Private Limited and New Allied Electronic Industries, importers of mobile phones. Justice Junaid Ghaffar on Wednesday disposed of suits Tiled by the applicants seeking refund of money collected from them as Sales Tax charged in terms of SRO 280(1)/2013 and 460 (1)/2013 at import stage. Khalid Rajpar advocate counsel for defendants Collector, Appraisement, South, Chief Collector, appraisement South and Collector Customs (Preventive) opposed the plea and said that department would consider the refund plea if the plaintiffs provides details pertaining to the consignments.

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PCA detects tax evasion of Rs7.14m by Malik Steel Works Hyderabad Friday May 25, 2018

National Adjudication-I recovers Rs6m from Shah Zain Plastic Industry & Export

KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs7.14 million by M/s Malik Steel Works, Hyderabad. Sources told Customs Today that M/s Malik Steel Works, Hyderabad located near Gari Khatta imported a consignment of steel manufacturer accessories including steel rods and got it cleared from QICT Karachi vide GDs on December 16, 2018 by paying customs duty low at 8 percent after claiming the benefit of the SRO 569/2007.

Appraisement East transfers additional, deputy, assistant collectors

KARACHI

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KARACHI

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ustoms Adjudication-I recovered Rs6 million from M/s Shah Zain Plastic Industry and Export, and served a final notice on a defaulter company named M/s Suleman & Sons, Karachi. Sources told Customs Today that defaulter company M/s Shah Zain Plastic Industry and Export got cleared a consignment of white and black plastic dana, crystal doted dana and folding machines parts on January 11, 2017 and evaded a tax amount of Rs 6 million. After the investigation, the Customs Adjudication-I served a show cause notice to the company on April 5, 2018 but it failed to clear the outstanding tax amount. The collector Customs Adjudication-I issued a final notice to the company on 2nd May, 2018. After receiving the notice, the company deposited Rs6 million in favor of the Customs Department on 14th May 2018.

DG Valuation upheld values of knob & handle door locks irector General Customs Valuation Surriya Butt has rejected a revision of Valuation Ruling No.1206/2017 and upheld the values of knob and handle door locks determined vide the said valuation ruling. Source told Customs Today that M/s J.K Enterprises and others approached Director General Customs Valuation praying that the Valuation Ruling No.1206/2017 does not cover the present fluctuation of prices in international market which have been reduced to about half of the prices. Director General noted importers had failed to prove with conclusive evidence that the values worked out in the impugned ruling were on higher side. â&#x20AC;&#x201C;CB Report

he Federal Board of Revenue has transferred and posted three additional collectors, three deputy collectors and one assistant collector with immediate effect. According to an FBR notiTication, Additional Collector Mona Mehfooz has been transferred from Group-V; VI & VIII, MIS, Facilitation Section; ClassiTication Committee and posted at Examination and Auction at all Wharves/Off-dock Terminals; Inter-Port Movement; Transit & Transsipments; MCD; ClassiTication Committee. Additional Collector Salman Afzal, on joining, has been posted at Group-V, VI & VIII, MIS, Facilitation Section; Audit (External & Internal).

Additional Collector Sheeraz Ahmed, presently posted at Examination and Auction at all Wharves/Off-dock Terminals; Inter-Port Movement; Transit &

Transsipments; MCD, has been granted 30-day leave. Deputy Collector Muhammad Rizwan, who is currently performing his duties in Group-II Internal Audit FTA Cell,

has been transferred to Group-VI Law-I, FTO-I, MIS-II, while Deputy Collector Ammara Durrani of Group-III is transferred to GroupVII, Adjudication level.

Customs receives Rs122.60m customs duty during first 10 days of May T

ISLAMABAD

TARIQ DERYA

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he Customs Collectorate received Rs.122.60 million revenue under the head of customs duty (CD) during Tirst 10 days of May 2018. According to details told by sources of MCC, during above-said period the customs collectorate received Rs.99 million under head of CD against assigned proportional revenue collection target of Rs221 million. The sources told that Collectorate earned less revenue of Rs49 million against Tirst 10 days of corresponding period of last FY16-17. It was told that Collectorate showed -45% revenue performance under head of CD during Tirst 10 days of May 2018 while it showed -29% revenue performance against revenue collection during corresponding

period of last FY16-17. The sources told that the MCC was assigned Rs5086.75 million revenue target under the head of customs duty but the MCC collected Rs.6048.79 million having 119%

revenue performance against assigned revenue collection target. Sources added that MCC Islamabad geared up its efforts to show better performance under head of CD during month of May 2018.

The Collectorate has been assigned Rs.685.38 million revenue target for the month of May 2018 which is very huge revenue collection target as compared to the same month of last FY16-17.

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Customs Preventive’s ASO seizes smuggled goods worth Rs10m KARACHI: The Customs Preventive’s Anti-Smuggling Organization (ASO) has foiled an attempt to smuggle goods worth Rs10 million. Information was received through Collector Dr Iftikhar to the effect that a 40-feet container loaded with smuggled betel nut, cigarettes and miscellaneous goods such as adults creams, lotions, lubricants, sprays as well as naswar etc. was being unloaded near Mauripur area. On the directives of Additional Collector Amir Thaim, Deputy Collector ASO Mohammad Faisal mobilized the team and swiftly intercepted the said container after tumultuous situation created by smugglers and seized smuggled goods of more than Rs 10 million in value. Investigations are underway.

Five Deputy Collectors, four Assistant Collectors transferred KARACHI

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he Federal Board of Revenue has transferred and posted five deputy collectors and four assistant collectors posted at Port Qasim Customs Collectorate with immediate eﬀect. According to an FBR notification, Deputy Collector Yawar Nawaz, on joining, has been posted at Headquarter/Admin, R&D (CIU), Group-IV, MIS/user Ids, Revenue Analysis. Deputy Collector Muhammad Qasim Khokhar, on joining, has been posted at Examination (QICT), ATLI and FTA Cell. Deputy Collector Amjad Hussain Rajper has been transferred from (QICT), FTA Cell & Refund to Group-I, II, Recovery, Refund & Adjudication (AC/DC level), ADRC & Bank Guarantee Cell. Deputy Collector Amjad

Aman has been transferred from Group-V, Adjudication (AC/DC level), ADRC & Audit (Int. & Ext.) and posted at Group-V, Bonds/warehousing. PRV & Audit (Int. & Ext.) Deputy Collector Muhammad Adnan Khan, presently posted at Examination (QICT), Preventive, Adjudication of cases pertaining Baggage Declaration Section, has been posted at One Customs/Bulk (Exam. & Proc.) Preventive, Adjudication of cases pertaining Baggage Section. Assistant Collector Malik Muhammad Ahmed has been transferred from Group-III, VII, Law-I (Court Cases) to Group-III, Law-I (Court Cases). Assistant Collector Mustafa Zamir has been transferred from Group-VI, Bank Gurantee Cell, Bulk (Exam & Proc), FTO Cell & Departmental Representation (DR) and posted at Group-VI, FTO Cell & Departmental Representative (DR) in Appellate Tribunal.

National

Court seeks charge sheet against suspects booked in mis-declaration case

PCA detects Rs9.36m tax evasion by M/s BDM Medical Equipment KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 9.36 million by M/s BDM Medical Equipment, it is learnt here. Sources told Customs Today that M/s BDM Medical Equipment imported consignment of diﬀerent kinds of electronic wheel chairs, BP apparatus, sugar apparatus and other things got cleared from the PICT Karachi vide GDs on December 17, 2017 by paying customs duty very low at 9 percent after claiming the benefit of the SRO 572/2007. However, the subject items were correctly classifiable under the PCT 3657.2108 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/shortpaid Rs 9.36 million. The goods were cleared by Appraiser Feroz Ali Khan. Sources said that the importer violated the provisions of Section 34 (2,3-A) of the Customs Act-1969, Section 78 read with Section 27 of the Sales Tax Act-1990 and Section 69 of Income Tax Ordinance 2001 punishable under clauses (47) and 46 of Section 59(6) of the Customs Act-1969, Section 12 of the Sales Tax.

KARACHI

M B RANA

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he Customs Court Judge Syed Faiz Rasool Rashdi on Wednesday directed investigation ofTicer to complete investigation and submit charge sheet against suspects namely Muhammad Jawais, Shahid Musa, Junaid, directors/ Partners of M/s S.M Traders, Eng. Syed Mukarram Ali, proprietor of M BHF Services, Naveed, an employee of M/s BHF Services, M/s South Asia Logistic Services and others, who are booked in a case of mis-declaration case. During the hearing, investigation officer submitted first information report before the court and informed that on a credible information, consignment of the above mentioned suspects was examined and during the examination was observed in the manner that a hug quantity such as 15110kg of undeclared new unstitched curtain cloth was found which was imported on the basis of forged/ fabricated bill of lading, value of the impugned goods has therefore, calculated to US% 8616 with application of existing valuation ruling order in revision no 237 dated 18-08-2016 @

Friday May 25, 2018

US$ 5.6/kg which is otherwise liable to customs duty Rs. 1,496,011, sales tax Rs1,923,309, additional sales tax Rs. 339,407, income tax Rs1,221,866, regularity duty Rs. 467,503 totaling Rs5,448,096. He submitted that during the investigation, it was revealed that act of the importer/ investor attracts with active connivance with their customs house agent and other associated have violated the provisions of section 19, 32 (1) (2)

79 and 192 of the Customs Act, 1969 read with special classification provision 9917, punishable under clauses 14, 86 and section 148 of the income tax ordinance 2001 and others related laws. He further submitted that investigation to unearth the remaining facts in the case is underway, after the hearing, court directed him to complete investigation and submit charge sheet against them on next date of hearing.

FIA seeks records of 1,763 seized mobile phones from FBR

ISLAMABAD

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he Federal Investigation Agency (FIA) has sought records of 1,763 conTiscated mobile phones from the Federal Board of Revenue (FBR). Sources said that these mobile phones had allegedly been sold to CSD. The FIA has requested the FBR to provide the record to the ofTice of Assistant Director Muhammad Aman Ullah Khan to comply with the court order. The Lahore High Court in criminal case No 211642 of 2018 vide order dated 14 May 2018 has ordered to expeditiously Tinalise the inquiry against the Customs

Intelligence ofTicers. Documents stated that the subject inquiry is under probe at this agency regarding corruption embezzlement/misappropriations of mil-

lions of rupees by the staff of Customs Intelligence and Investigation regarding the State Warehouse, Allama Iqbal Town. In response, vide ofTicer letter

No.C.No II(SWH) Disp dated 19 January 2018, it was informed that as per FBR Islamabad’ letter dated 19 March 2018, Tield formation had been restrained from providing information directly to the Federal Investigation Agency (FIA) and Chief Management Islamabad was nominated as focal person to provide the record. The Chief Management Customs Islamabad was requested vide this ofTice letter dated 22 January 2018 and subsequent letter dated 30 January 2018 to provide the requisite record. In response, the secretary (Mgt Customs-III) on February 9, 2018, requested the DG customs Intelligence FBR to provide the relevant information and assistance to FIA.

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China Contributing $500 Million to Trump-Linked Project in Indonesia

World Customs

China: The Chinese government is extending a $500 million loan to a state-owned construction company to build an Indonesian theme park that will feature a Trumpbranded golf course and hotels. A subsidiary of Chinese state-owned construction firm Metallurgical Corporation of China (MCC) signed a deal last week with the Indonesian firm MNC Land to build an “integrated lifestyle resort,” as part of Beijing’s global influence-expanding “Belt and Road” infrastructure initiative.

Friday May 25, 2018

Swaziland’s reserves dwindle to $790,000

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UK cheese exports tops £615m mark xports of cheese from the UK have risen 23% on 2016 to surpass the £615 million mark last year, according to the latest figures from HMRC. The data shows volumes of exported cheese rose by five per cent from the previous year reaching just over 170,000 tonnes. While cheddar continues to dominate exports, fresh cheeses and in particular mozzarella saw strong export growth in the year. The lion’s share was shipped to European markets with Ireland, France and the Netherlands remaining the most important destinations. Shipments to Germany have been declining, although replaced by increased sales to Denmark and Poland. Figures also show an increase in cheese exports to Asia, mainly to the Philippines, with volumes up 27% year-on-year. –CB Report

MOSCOW

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SWITZERLAND

he Kingdom of Swaziland only has around $790,000 left in the bank, according to the central bank’s latest estimate, as an economic slowdown in neighbouring South Africa hits home. The official reserves would cover only four months of vital imports, the central bank’s Monetary Policy Consultative Committee said in its latest fiscal update. “The contraction in the level of reserves was mainly on account of payment of government’s external obligations,” a statement said. The country is highly dependent on imports and has seen exports hit by a slowing South African economy. “The South African economy continued to notch sluggish growth rates and the outlook remain pre-

Sberbank sells Turkish unit to Emirates NBD

carious,” the statement said. The absolute monarchy, ruled by King Mswati III, also faces losing duty free access to the US market over concerns about human rights. Swaziland has a poor rights record, where pro-democracy ac-

tivists are often detained and charged with terrorism. Political parties have been banned in the country since 1973. The IMF has urged “wide-ranging structural reforms” to attract foreign investors.

China reports brisk trade performance despite worries over row with US

hina’s April exports rose 12.9 percent from a year earlier, rebounding from a drop in March, while imports grew 21.5 percent, both growing much faster than expected despite worries over an escalating trade dispute with the US. That left the country with a trade surplus of $28.78 billion for the month, customs data showed. Analysts polled by Reuters had expected April shipments from the world’s largest ex-

porter to have risen 6.3 percent on year, bouncing back from a 2.7 percent decline the previous month that was believed to have been heavily distorted by seasonal factors. Import growth had been expected to pick up to 16 percent, compared with 14.4 percent one month earlier. Analysts had expected China to post a trade surplus of $24.7 billion for April after a rare deTicit of $4.98 billion the previous month. –CB Report

ussia’s state-owned Sberbank said it was selling its Turkish subsidiary Denizbank to Emirates NBD for roughly 2.7 billion euros ($3.2 billion) to focus on its own brand. Sberbank bought Turkey’s Tifth-largest lender in 2012 from the failing French-Belgian bank Dexia as part of efforts to expand internationally, but US sanctions imposed after Russia’s intervention in Ukraine have crimped that strategy. The Russian bank said the Tinancial impact of the deal will depend on Tluctuations in the exchange rate of the Turkish lira, which has been weakening in recent months, until the closing of the transaction. Sberbank paid Dexia 6.5 billion Turkish lira for Denizbank, which was worth approximately 2.8 billion euros or $3.5 billion at the time. While Sberbank will receive 14.6 billion lira for Denizbank, that is currently less than the purchase price in dollars. Sber-

bank’s chief executive German Gref said “the decision to sell Denizbank is prompted by a change in Sberbank Group’s international strategy and will allow us to focus further on development of the ecosystem of Sberbank.” Meanwhile, Emirates NBD’s vice chairman and managing director Hesham Abdulla Al Qassim said the purchase will help it “establish itself as a leading bank in the region and achieve meaningful diversiTication of its operations, both in new countries and in a broad range of business segments.” Denizbank has approximately 11.8 million clients and a network of 708 branches in Turkey. Meanwhile, The CEO of a joint venture founded by Tive local Tirms to produce Turkey’s Tirst domestically-produced car will be announced Science, Industry and Technology Minister Faruk Özlü has said. “President Recep Tayyip Erdoğan will announce the CEO of the company and witness the incorporation protocol,” Özlü told reporters after the Technology Development Zones Summit in the capital Ankara.

Saudi Aramco’s non-fuel future

ou are deep inside the field of dreams watching tendrils of bright green snaking through the red world that envelopes you, while small black balls rush through tubes leading up to the surface 7,000 feet above your head. A psychedelic dream? A scene from a science-fiction movie? Neither of these. Welcome to the Geosteering Operations Center (GOC) at the headquarters of Saudi Aramco in Dhahran in the Kingdom’s eastern province. The “field of dreams” so described by American oil geologists when it was found in the 1940s is Ghawar, the largest on-

shore oil field in the world; the green fingers are the multi-branch drill lines that reach out for each available drop of oil; the black balls represent nano-molecules of advanced ingredients to ease the flow of crude to the desert well-heads. Aramco’s state-of-the-art technology allows you, via a virtual reality headset, to look deep inside the well that supplies something like half of the 9.9 million barrels of crude the Kingdom produces every day. You are able to experience what it’s like deep inside an oil well thanks mainly to two bits of tech geosteering and billion. –CB Report

Iran signs provisional pact to enter Russia-led free-trade zone

TEHRAN

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he Tive-nation Eurasian Economic Union (EEU) has signed a 3-year provisional agreement with Iran to welcome the Islamic Republic into the bloc’s free-trade zone. “The temporary agreement stipulates an effective dispute settlement mech-

anism, including arbitration… It also creates a joint committee of highranking ofTicials and establishes a business dialogue,” the chair of EEU economic commission board, Tigran Sargsyan, said at the ceremony in Astana, Kazakhstan. Earlier on Wednesday, the head of the Economic Affairs Committee of Iran said that Tehran intends to boost economic ties with Moscow and the prospect of the re-

turn of US sanctions will only serve to strengthen them. “Not only will the previous agreements remain in force, but, there will be new ones, there will be new contracts,” Reza Pour Ebrahimi told RIA Novosti. After the US withdrew from the Iran nuclear deal, Washington said it would give European companies six months to wind up their investments in Tehran or risk US sanctions, and they are also

forbidden from signing any new contracts with the country. Russia said it will remain committed to the deal, describing the US actions against Iran as “veiled protectionism.” The EEU was established in 2015 based on the Customs Union of Russia, Kazakhstan, and Belarus, and was later joined by Armenia and Kyrgyzstan. In 2016, Vietnam ofTicially became the Tirst non-regional country.

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Why China may pay a high price for cutting the trade gap with the US China: A key pillar of China’s economic boom is crumbling away, a change that analysts believe could make it harder for Beijing to accede to America’s demands to slash the trade gap between the two countries. Customs figures for the first four months of the year show that China’s trade surplus with the US exceeded the country’s overall surplus: in other words, China would be in deficit without its gains from the US.

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

Ports & Shipping

Pakistan to soon launch electronic trade data exchange with China P

LISBON

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akistan will soon launch electronic data exchange with China which would permit real-time recording between the two countries. The launch of an electronic data trade terminal would help to control revenue evasion and money, an ofTicial said, reported. The Directorate General of Reforms and Automation-Customs has made this software and user acceptance testing was carried out by Trade Development Authority (TDAP) and has now ended. The ofTicial shared currently the testing of electronic message exchange via software was ongoing between the technical teams of Pakistan and China. He added the system which was being established under China-Pakistan free trade agreement (FTA) is going to be available for live data exchange after the testing Tinishes. In a recent talk with journalists, Finance Minister Miftah Ismail had revealed the government had found mass under-

invoicing on imports from China. And Prime Minister Shahid Khaqan Abbasi had said according to data available from Pakistan Customs imports from China stood at $12 billion, whilst data from the Chinese side revealed exports of $16 billion in the same period. Previously, it was reported for addressing under-

invoicing of imports, Pakistan and China had reached an agreement to initiate a digital exchange of trade data from April 30th, 2018. This move is being carried out in lieu of bulging bilateral trade between Pakistan and China, which is hugely in favour of the world’s second largest economy.

Friday May 25, 2018

Will the Border break the all-Ireland food chain? hether it’s millions of litres of milk, artisan gin, traditional soda bread or even a favourite chicken dish, Ireland is by far the biggest and most important export market for many of Northern Ireland’s leading food and drink producers. Brexit could turn this market on its head if a hard border or new customs arrangements come into play and this prospect is forcing some of the North’s biggest agri-food producers and suppliers to start planning for a worst-case scenario. So they need to start getting ready, says Neil Gibson, chief economist with EY Ireland. “Though businesses crave certainty, the truth is that most are used to dealing with an uncertain world. Regulations, exchange rates, customer trends, competitor behaviour always generate uncertainty so perhaps the lack of economic collapse in the face of ambiguity surrounding Brexit should not be a surprise. –CB Report

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

CHINA

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he Nansha Pilot Free Trade Zone will become a new international shipping hub, linking Guangzhou to more countries and regions in the years to come. Guangzhou has been a major commercial city and a trading port in China since ancient times and Nansha, located at the estuary of the Pearl River, should play an even bigger part in the city’s opening up and foreign trade, said Pan Yuzhang, deputy director of the Nansha Pilot Free Trade Zone’s administrative committee. “To this end, Nansha port is negotiating to open more global ocean routes in the coming years while expansion of the port is well underway,” Pan said, without revealing specific details.

Meanwhile, two luxury cruiser docks, with a capacity of more than 100,000 metric tons each, will be completed and start service in the first half of 2019, with an aim to build Nansha into one of the major ocean cruise centers in Asia, Pan added. Last year, cruiser piers in Nansha, which has opened cruise routes to Japan and Southeast Asian countries, handled more than 400,000 passenger trips. Nansha is the only ocean port in Guangzhou, capital of Guangdong province. The port, which now has 16 deepwater container piers that can handle 150,000ton vessels, has now opened international ocean routes to more than 200 cities and regions. Meanwhile, Nansha port is expected to become a sub-center of Guangzhou and a modern logistics center. It has built a series of

special docks for grains, crude oil, vehicles and petrochemical products. Last year, Nansha port’s cargo throughput reached 335 million tons, while its container throughput came to more than 14.06 million TEUs, making it one of the largest ocean ports in the world. Nansha, which officially became a pilot free trade zone in April 2015, has promised to further improve its infrastructure facilities and will simplify procedures for both overseas and domestic companies to settle down there. The zone has now attracted more than 4,600 major foreign and domestic shipping and logistics companies, according to Pan. Nansha’s Longxue Island, where Guangzhou Shipping International Company Ltd is located, has become one of the three biggest ship building centers in China. GSI, one of the ma-

jor shipyards on the Chinese mainland and a Shanghai Stock Exchange-listed company, has a production capacity of more than 3.5 million DWT annually. The establishment of the Nansha Pilot Free Trade Zone has further promoted the economic development of Nansha and helped accelerate its port construction. According to official statistics, Nansha’s GDP reached 139.2 billion yuan ($22.1 billion) last year, 22.5 times more than the figure in 2002. Its import and export volume came to 195.17 billion yuan in 2017, 27.6 times more than the figure in 2002 and representing a fifth of Guangzhou’s total. Nansha attracted an actual foreign investment of $1.04 billion in 2017, 16 times more than the amount in 2002 and accounting for a sixth of the city’s total.

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FIA arrests 23 people deported from Turkey, Greece Friday May 25, 2018

Business

SIALKOT: Federal Investigation Agency (FIA) claims to have arrested 23 people deported from Turkey and Greece after their arrival at the Sialkot International Airport, reported a local English newspaper. FIA Divisional Deputy Director Mufakhar Adeel told media that some agents and human traffickers have sent these people to Greece and Turkey after taking money from them. The security agencies of these countries arrested them and deported to Pakistan.

Textile exports increase to $11.13b in 10 months ISLAMABAD

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LAHORE

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he textile exports from the country have increased by 8.13 percent to $11.13 billion during July – April 2017/2018 as compared with $10.29 billion in the corresponding period of the last Tiscal year. According to data released by Pakistan Bureau of Statistics (PBS) the textile exports had increased on back of incentives provided by the government through rebates and exemptions. The exports of knitwear are the major components in textile exports as this product fetched $2.2 billion during Tirst ten months of the current

Plastic manufacturers flay tax regime KARACHI

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akistan Plastic Manufacturers Association (PPMA) has criticised the federal budget, saying the proposed measures would badly aﬀect the plastic sector, a statement said. PPMA Chairman Zakaria Usman criticised bringing commercial importers into the minimum tax regime from fixed tax regime, it added. “We are of the strong view that the current rate of income tax is very high, as our raw material is high-value commodity and importers already pay substantial amount of taxes at the import stage”, Usman said.

Nawaz fails to appear before NAB www.customsbulletin.com

eposed prime minister Nawaz Sharif failed to appear before an investigation team despite being summoned by the National Accountability Bureau Lahore (NAB) in the Raiwind Road construction case. This is for the second time that Sharif has ignored the NAB summons and opted not to appear before the investigation team. The summons was sent to him last week. The notice was also delivered to his residence at Jati Umra. The first notice was served in April but Sharif did not appear reportedly because he was abroad to inquire after the health of his wife, Kulsoom Nawaz. After his absence for the second time, NAB will decide the future line of action in a meeting of its executive board. A NAB oﬃcer said during the meeting NAB will consider diﬀerent actions under the law — including sending of another summons or filing of a reference, adding “there is a possibility of a reference being filed against Sharif next month.” Sharif as prime minister of Pakistan in 1998 had allegedly issued illegal directions to local authorities to widen the Raiwind road. Shehbaz Sharif was the chief minister of Punjab at the time.

D Tiscal year as compared with $1.92 billion in the corresponding period of the last Tiscal year, posting 14.7 per-

cent growth. Similarly, the exports of readymade garments posted 12 percent growth to $2.12 billion during

the period under review as compared with $1.89 billion in the corresponding period of the last Tiscal year.

NAB launches inquiries against housing society, others T

KARACHI

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he National Accountability Bureau (NAB) has initiated an inquiry against owners of Khayaban-i-Amin Housing Society, Lahore, after receiving numerous complaints of not handing over of homes, plots and Tlats to the owners despite receiving complete payments worth Rs221.65 million. NAB Lahore Director General Shahzad Saleem chaired a Regional Board Meeting (RBM) in which the

said inquiry was authorised. NAB had received 287 complaints against owners of Khayaban-i-Amin, alleging fraud with the public. Earlier, NAB Lahore had received 223 complaints, whereas, 64 new complainants had approached NAB Lahore seeking help against the society. Meanwhile, another inquiry was authorised against Dr M Arshad, Director (Education) Punjab Workers Welfare Board (PWWB), ofTicers/ofTicials of Punjab Workers Welfare Board, and Aurangzeb Enterprises, Ahmed Traders, Amin & Sons, Javed Enterprises and others. The inquiry has

been initiated after the information gathered by the Bureau about misuse of the authority in procurement of substandard uniforms for PWWB Schools in the year 2012-13. The complaint proceedings revealed that the subject persons did not allow all willing private companies to participate in the tender proceedings for summer/ winter uniforms for the PWWB schools for the year 2013-14. Moreover, the rates approved in tenders were 130% higher than the tender received in the previous year 2012-13, which allegedly caused a loss of Rs100 million to the Board.

SRB launches relief package for taxpayers KARACHI

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he Sindh government has announced a sales tax relief package for its taxpayers by waiving the entire penalty, cutting default surcharge by up to 95% and giving immunity from arrest and prosecution till June 20 this year, according to a notiTication issued. Sindh Revenue Board Chairman

Khalid Mahmood, in a notiTication, said taxpayers who would deposit “arrears of tax (principal amount) plus 5% of default surcharge … between May 21 and 27, 2018” would be able to fully enjoy the offered tax relief package. The taxpayers who will miss the Tirst deadline may still enjoy the relief by submitting 10% of default surcharge along with the principal amount of taxes from May 28 to June 3, 2018. Later, the taxpayers can opt for

the package by submitting 15% of default surcharge from June 4-10, 2018. Finally, the taxpayers can take beneTit of the package by paying a maximum 20% of default surcharge along with tax arrears from June 11-20, 2018. “The sales tax relief package will become invalid after June 20, 2018,” Mahmood said, adding the package would also provide substantial beneTits and relief to service providers and withholding agents in return for tax compli-

ance under the Sindh Sales Tax on Services Act, 2011. The beneTits will also be available in cases where a person has paid late the principal amount of tax prior to the issuance of this notiTication, but has not yet paid the penalty and default surcharge provided he pays 10% of penalty (as outstanding on May 21, 2018) and 25% of default surcharge (as outstanding to the Sindh government by June 20, 2018. In cases, where no tax liability

is outstanding, but only the arrears of penalty and default surcharge are due to be paid, the relief package allows remission of 90% of such penalty and 75% of default surcharge, if the balance of penalty and default surcharge is deposited from May 21 to June 20, 2018. The Sindh Revenue Board has asked all taxpayers, service providers and withholding agents to avail themselves of the benefits of the relief package.

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ICCI concerned over 50pc rise in external debt ISLAMABAD: The Islamabad Chamber of Commerce & Industry has expressed great concerns over the rising external debt and liabilities of the country. The country’s external debt and liabilities have soared to a record level of $91.8 billion by the end of March 2018 as per SBP’s latest report showing an increase of over 50% during the last four years and nine months. The ICCI called upon the government to take urgent measures to reduce the country’s dependence on rising foreign debt as it would create more problems for the economy. ICCI President Sheikh Amir Waheedsaid that the previous government had resorted to heavy borrowing to meet the current expenditures and run the aﬀairs of the country. It was expected that the current government would curb this unhealthy trend by devising a new strategy.

CDA asked to focus on carpeting of roads in G-10 Markaz

Friday May 25, 2018

Chambers

MCI & CDA asked to play role for development of markets

ISLAMABAD

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delegation of Traders Welfare Association, G-10 Markaz, Islamabad led by its President Syed Kamran Kaka Khel and Secretary General Sardar Abid Yousaf visited Islamabad Chamber of Commerce & Industry and highlighted the key issues of their market in order to seek the support of ICCI for their urgent redress. Addressing the delegation, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry stressed that CDA should focus on carpeting of roads in G10 Markaz as the condition of roads in market was quite pathetic. He said that CDA has not done any development work in markets for the last many years

due to which the traders were facing problems in promoting business activities. He stressed that CDA should focus on addressing key issues of G-10 Markaz and undertake developmental works all major markets on priority basis so that businessmen could feel facilitated in promoting business activities. He said that trade and industry was facing many diﬃculties from CDA including renewal of leases, transfer of plots and completion certificates of buildings. He informed the TWA G-10 Markaz that ICCI was considering to evolve a new strategy in consultation with market unions for resolution of key issues of business community related to CDA. He said that CDA laws needed amendment as the current laws were a major hurdle in the development of markets and city. He assured that Chamber would fully cooperate with G-10 Markaz for serving the cause of traders.

ISLAMABAD

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uhammad Naveed Malik, Senior Vice President, Islamabad Chamber of Commerce & Industry said that ever since the election of Metropolitan Corporation Islamabad (MCI), CDA has adopted the unhealthy approach of ignoring development works in markets due to which the markets of federal capital were presenting a dilapidated look. He called upon the MCI and CDA to focus on better development of markets so that business activities could flourish and local economy could be further strengthened. He said this while talking to a delegation of local traders that called on him on his return from foreign tour. Nisar Mirza Vice President ICCI was also present at the occasion. Baser Daud, Khalid Chaudhry, Nasir Mehmood Chaudhry, Tahir Mahmood and others were in the delegation. Muhammad Naveed Malik said that business community was playing leading role in the economic development of the country

as they were promoting business activities, creating new jobs and improving revenue of the country. Therefore, it was essential that MCI,

CDA and all other relevant local organizations should pay urgent attention to resolve the key issues of business community and facilitate

Call for urgent redress of Fruit Market issues ISLAMABAD

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delegation of Islamabad Chamber of Commerce & Industry visited I-11/4, Islamabad to congratulate the newly elected ofTice bearers of Anjamune-Wholesale Fruit Commission Agents. Babu Aleem was elected as President, Tahir Ayub Secretary General, Haji Nadar Khan and Haji Dilawar Khan Senior Vice Presidents, HaTiz Abdul Waheed and Syed Wali Jan Vice Presidents, Ch. ZulTiqar Ahmed Additional Secretary General, Ehsanullah Khan Secretary Finance, Ch. Izhar Rauf Secretary Information and Syed Afzal Bukhari Joint Secretary. Muhammad Naveed Malik Senior Vice President, Nisar Mirza Vice President ICCI, Zubair Ahmed Malik Chairman Founder

Group, Mian Akram Farid, Muhammad Ejaz Abbasi, Ch. Waheed ud Din, Ahmed Mughal, Khalid Chaudhry, Raja Abdul Majeed, Iftikhar Anwar Sethi, Mahmood A. Warraich, Ashfaq Chatha, Sh. Abdul Waheed, Shiraz A. Siddiqui, Syed Adil Anis, Tahir Mahmood and others were in ICCI delegation. Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that Wholesale Fruit Market was supplying fresh fruits and vegetables to twin cities, KP and Azad Kashmir and was also promoting exports of these products to Afghanistan and Central Asia. He stressed that CDA and government should focus on better development of wholesale fruit market and address its key issues so that it could play more effective role in promoting business activities and exports.

He said Market Committee domain was limited to wholesale fruit market, but traders and industrialists of the whole city receiving notices for licenses fee which was not justified. He said the license fee dispute between CDA and Market Committee was in the Islamabad High Court and called upon the Chief Commissioner ICT to immediate withdraw issued notices for license fee till the court decision in the matter. Speaking at the occasion, Babu Aleem President and Tahir Ayub Secretary General, Anjuman-e-Wholesale Fruit Commission Agents highlighted the key issues of their market. They said that they were facing problems from CDA in lease renewals as the civic body has made this process very complicated. They emphasized that ICCI should take up this issue with CDA for redress.

the private sector in every possible way so that business activities could boost in the city and local economy could further grow.

LCCI Achievement Awards – 2018 hile acknowledging the role of business community for economic development of the country, Prime Minister Shahid Khaqan Abbasi has said that government is taking all possible measures to ensure business friendly environment in the country. He was speaking at the ceremony of “LCCI Achievement Awards – 2018”. The LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar, Vice President Zeshan Khalil, Federal Commerce Minister Pervez Malik, Federal Minister for Information Technology & Telecommunication Anusha Rehman, Federal Minister for Information & Broadcasting Mariam Aurangzeb, former LCCI oﬃce-bearers and Executive Committee Members were present on the occasion.

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ANF arrests two mules at Lahore airport LAHORE: The Anti-Narcotics Force has claimed to have arrested two drug smugglers during a successful operation at the Lahore airport. The suspects were identified as Muhammad Saleem and Muhammad Shafique were arrested shortly before they tried to board a Malaysian flight. The ANF officers also seized a large number of heroin-filled capsules from their abdomens. The suspects were shifted to an unknown facility for further interrogation.

Friday, May 25, 2018

CUSTOMS BULLETIN

Gwadar Customs seizes huge quantity of narcotics worth Rs 5 million GWADAR WAQAR AHMED ANSARI www.customsbulletin.com

he Customs Collectorate seized huge quantity of bottle of wines and hashish worth Rs5 million of Wednesday. Sources told Customs Today that deputy collector received secret information that some smugglers are trying to smuggle bottle of wines and drugs from Gwadar. Source said that truck will be arrived Gwadar check post. After this information, the deputy collector constituted a raiding team under the supervision of Customs Preventive Inspector Noushad Ali and others. The team during search operation at the exit point of Gwadar city intercepted a truck bearing registration No: GSS-7846. During a search, the team impounded 200 bottles of wines and 10 kilogram of hashish valued at Rs 5 million. The team took into possession all the bottles of wines and hashish and arrested two smugglers including a driver and cleaner. Source said the customs team will register an FIR against the accused persons after investigations.

NAB chief orders various complaint verifications ISLAMABAD

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ational Accountability Bureau Justice (retd) Chairman Javed Iqbal has ordered complaint veriTication against the Petroleum Division and other federal ministries for establishing companies allegedly in violation of law. The complaint veriTication was initiated on the complaint Tiled in

the NAB that two years back, the Ministry of Petroleum established two companies i.e. Pakistan LNG Limited and LNG Terminal Limited. The NAB chairman ordered complaint veriTication against Member Oil and Gas Regulatory Authority (Ogra) Aamir Naseem for alleged abuse of authority and involvement in corruption. According to the complaint, authority and involvement in corruption. According to complaint, the violation of sub-section 2 of the Section 5 of the Ogra Ordinance 2002 was made in the appointment of Member OGRA Aamir Naseem.

NAB chairman Justice (R) Javed Iqbal ordered complaint veriTication against Shah Nawaz Khan

MPA for allegedly occupying building of Government Boys Primary School No 2 Hassanabdal and sub-

Published by M S Raza Oﬀ# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by (Ibne Hassan Oﬀset Printing Press, Shop No. 33 to 36 , Hockey Stadium, Karachi).

sequently using the school building for political purposes. The NAB chairman has also ordered complaint veriTication against former Provincial Minister for Industries and Trade Punjab Chaudhry Muhammad ShaTique for allegedly occupying 98 kanal government land and subsequently using it for commercial purposes. Another complaint veriTication ordered by the NAB chairman against Riazul Haq MNA for alleged embezzlement in government funds allocated for Chairman Municipal Committee Okara for construction of roads.