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Karachi, Fri May 26, 2017

ISLAMABAD

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ederal Finance Minister Ishaq Dar will present the federal budget for Piscal year 201718 in parliament on Friday (tomorrow) with total outlay of Rs 4850 billion. The government is expected to set the revenue collection target for the Federal Board

of Revenue (FBR) at Rs 3,950 billion. Customs duty and tariff is expected to be changed on more than 700 items. While customs duty, sales tax and federal excise duty (FED) on imported items, especially cosmetics, perfumes, electronics goods and appliances such as refrigerators, air conditioned, microwave ovens, washing machines, juicers, LCD TVs, imported food items milk powder, chocolates, cheese, animal foods, tins food is expected to be increased from 2 to 5 percent. The FBR has proposed 0.2 increase in withholding tax rates for non-filers. Duty and taxes on mobile

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phones and internet connections are also proposed to be increased. The tax rates on export of cement and steel are also proposed to be increased. The democratic government of Pakistan Muslim League-Nawaz (PML-N) is all set to present its fifth and last Federal Budget with an outlay of over Rs4.8 trillion for Fiscal Year 201718 before the Parliament on 26th May (Friday). A special package for former and agriculture sector would be announced. Loans for agriculture sector will also be increased. Subsidy on energy for poor people also would be increased.

PCA recovers evaded amount from Pakistan Intâ&#x20AC;&#x2122;l Bulk Containers Terminal

Commerce ministry submits proposals for budget 2017-18

Development budget increased as result of proper tax collection: Ahsan

Customs I&I impounds 2000 non duty paid mobile phones

Multan Customs generates Rs7.712m through auction of vehicles, goods

DG of PCA recovered Rs 1.5m from Pakistan International Bulk Containers Terminal | SEE PagE 02 |

Ministry of Commerce presented budget and tax related proposals for the trade | SEE PagE 03 |

Ahsan has said that development budget has been increased as a result | SEE PagE 04 |

Customs Intelligence has impounded 2000 non-duty paid mobile phones | SEE PagE 14 |

The Customs Collectorate generated Rs7.712 million through the auction | SEE PagE 16 |

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Faisalabad Customs seizes consignment of smuggled Rani juice Friday, May 26, 2017

National

FAISALABAD: The Customs Intelligence and Investigation seized a consignment of smuggled Rani juice worth Rs17,00,000 involving duty and taxes amounting to Rs968320 during a crackdown. Sources told Customs Today, that the intelligence staﬀ intercepted a trailer bearing registration no: TLE-227 near Jhang Road Bypass and recovered 998 cartons of Rani juice. The trailer was coming from Karachi. The intelligence team asked the driver Asif ali son of Muhammad Habib to produce document regarding legal import of the items.

PCa recovers evaded amount from Pakistan Int’l Bulk Containers Terminal

NaB approves reforms in Cooperative Department ISLAMABAD

KARACHI

waQaR ahMED aNSaRI

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ational Accountability Bureau (NAB) Chairman Qamar Zaman Chaudhry has approved recommendations of the Prevention Committee for Reforms in Cooperative Department. The NAB’s Prevention Committee for Reforms in Cooperative Department Islamabad Capital Territory (ICT) was constituted in pursuance of Section 33-C of NAB Ordinance, 1999, comprising representatives of all stakeholders including representation from Cooperative Department Islamabad Capital Territory (ICT). The NAB’s Prevention Committee held various meetings and after due deliberations, a set of recommendations was presented to its chairman Qamar Zaman Chaudhry in a meeting at NAB headquarter. The Cooperative Department appreciated NAB’s eﬀectors for proposing eﬀective and workable recommendation which were prepared by NAB’s Prevention Committee. The ICT through a Gazette Notification No RCS/01-05 dated March 03, 2017 informed NAB that NAB’s recommendations have been included in the Gazette Notification No RCS/01-05 dated March 03, 2017 and directed all management committees of Cooperative Housing Societies to implement these directions issued under Section 44-D and 44-E of the Cooperative Societies Act, 1925.

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irectorate General of Post Clearance Audit (PCA) recovered Rs 1.5 million from Pakistan International Bulk Containers Terminal. Sources told Customs Today that Director General Customs Post Clearance Audit Gul Rehman directed Deputy Director Iqbal Ahmed to scrutinize the clearance documents of Pakistan International Bulk Containers Terminal. During scrutiny of the documents, it was revealed that Pakistan International Bulk Containers imported a consignment of machinery and plants and availed unnecessary concession through SRO No. 1178(1)/2015. Sources said that the company caused a loss of Rs 1.5 million to the national kitty. After detecting the tax evasion, the PCA authorities directed the management of Pakistan International Bulk Containers to clear the outstanding dues on priority basis to avoid stern action. After receiving the notice M/s Pakistan International Bulk Containers Terminal deposited the evaded amount. It is necessary to mention here that PCA authorities expedited their efforts to recover outstanding amount from defaulters. Meanwhile, Customs Appraisement East has asked a company to

not to claim the dump trucks as second hand/used trucks of all sorts older than Pive years are not importable under temporary scheme. The collectorate advised M/s Zealcon Engineering (Pvt) Ltd to surrender these trucks keeping the Ministry of Commerce’s import policy in mind. M/s Zealcon Engineering, however, did not surrendered the vehicles despite the undertaking

submitted by them that the vehicles would be surrendered within 48 hours of the receipt of notice from customs. The company imported a consignment of two used Volvo Articulated dump trucks from UAE and claimed clearance under PCT heading 8429.1900 under temporary importation scheme claiming concessionary rate of duty vide SRO 450(1)/2001. On physical examina-

tion, the manufacturing year of the truck were found as 2007 and correctly classiPiable under PCT heading 8704.1090. As per Import Policy Order, old and used dump truck older than Pive years is not allowed to be imported. Importer contested that import of used dump trucks older than 5 years are allowed for temporary import in terms of para12(a) of Import Policy Order.

aSO seizes goods valued Rs01.3m in second week of May T

FAISALABAD

NaEEM ShEIkh

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he Anti-Smuggling Organization Faisalabad conPiscated miscellaneous goods worth Rs01.3million in different operations during the second week of May of Fiscal Year 217-18. Under the supervision of Deputy Collector Usman Tariq, the ASO team conducted various raids to arrest the smugglers.

The ASO team, participating in these seizure operations, consisted of Superintendent Dilawar Hussain, Inspectors Khalid Ashraf Noor, Ali Zahid, Khalid Mehmood Dogar, Sepoys Muhammad Ashraf, Liaqat Ali, Israr Ahmad and Muhammad Abdullah. The ASO team impounded one offending vehicle under Section (U/S 157) worth Rs700000, tyres and tubes (210-pieces) worth Rs400000 and other miscellaneous goods (1375-kg) valued Rs191505. The ASO seized items with sec-

tion contravened of Import and Export Control Act 1950 which is punishable under Section 156(i) 89(i) and 90 of the Custom Act-1969 and forwarded the cases to the Customs Adjudication further proceeding. Meanwhile, Customs Adjudication Collectorate Additional Collector (ADC) Muhammad Saeed Asad issued two Order-in-Originals (ONO) worth Rs03.4million against the Anti-Smuggling Organization (ASO) Faisalabad. The ASO Faisalabad staff intercepted two suspicious trucks with registra-

tion No: TKJ-715 and TKD-990 loaded with foreign origin (F/O) Iranian almonds weighed 11,660-kg, almond nuts do 3800-kg and Kishmish weighed 11,017-kg. These food items were being transported from Quetta to Faisalabad. The driver of the vehicle failed to produce any relevant documents about the possession of the goods and a vehicle on the spot. The customs authorities impounded the vehicle and smuggled items and referred the case to Customs Adjudication authorities. Muhammad Naseem,

representing the respondent, submitted a written reply against the show cause notice. Inspector Faizi Raza represented the department and reiterated the charge framed against the party. The stance of the respondent is that they are bona Pide and regular importer of dry fruits. The impounded goods have been legally imported and were being shifted from Quetta to Faisalabad through registered transport company with bilties No: 2008 dated 205-2017 and 2011 dated 2-05-2017.

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FBR to present new measures to broaden tax base thru Finance Bill ISLAMABAD: Federal Board of Revenue (FBR) is going to propose some new steps for broadening the tax base through Finance Bill 2017, which would be presented on May 26. The FBR’s budget recommendations may include: Change in FBR’s valuation of immovable property, which was announced last year after consultation with stakeholders. Around 20-25 percent increase in existing valuation table is likely. The enhancement of valuation will reduce gap between oﬃcial FBR’s property valuation and open market values. Enhancing the scope of regulatory duty on import of luxury and unnecessary goods for discouraging imports of such goods.

Islamabad customs impounds vehicle valued Rs02.3m

Friday May 26, 2017

National

Commerce ministry submits proposals for budget 2017-18

ISLAMABAD

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Special Car Cell, Directorate General Customs Intelligence and Investigation, Federal Board of Revenue Islamabad, impounded a non-duty-paid Toyota Mark II car worth Rs02.3 million. The cell received a tip-oﬀ that a smuggled car is being driven in the area of Sector G-11, Islamabad. The special car cell intercepted the car modelled 2000 with a registration plate No. BCX-432 Sindh and impounded it from Muhammad Idrees S/o Muhammad Khurshid, a resident of Nust University, Abdul GardenH-13/4, Islamabad. On demand, the possessor of the vehicle failed to produce any import and auction documents except a registration book.

DC Saad assigns diﬀerent duties to 12 employees MULTAN

IMRaN aLI

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he Customs Collectorate has issued transfer order of employees, including 5 inspectors, clerks and others. According to details, Deputy Collector Saad Ata Rabbani (Headquarters) has transferred 12 employees of Multan Customs Collectorate in his recent notification, assigning new responsibilities. Five inspectors of Bs-16 are posted at various positions of Collectorate. Inspector Muhammad Saleem is transferred from Anti-Smuggling Organization to Multan International Airport. Inspector Muhammad Ali posted to Customs General Post Oﬃce from Anti-Smuggling Organization. Inspector Muhammad Farooq who was performing his duties in the car cell of Anti-Smuggling Organization is posted to Refund and Rebate branch, Customs House Multan.

ISLAMABAD

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e Ministry of Commerce presented budget and tax related proposals for the trade and commerce sector to Finance Minister Ishaq Dar. The presentation was made by the Commerce secretary during a preparatory meeting for the upcoming budget for FY2017-18. The preparatory meeting was presided over by the Pinance minister. The Commerce secretary presented budget and tax related proposals for the trade and commerce sector to the Pinance minister, based on consultations he had held with representatives of various industries and exporters. Dar said the proposals would be accorded due consideration in the budget preparations. He said that the government is fully cognizant of the need to boost the country’s exports in order to achieve higher, sustainable and inclusive export-led GDP growth. He highlighted that the government announced the Prime Minister’s Package of Incentives for Exporters worth Rs180 billion earlier this year to this end. The Commerce secretary informed the minister that the incentives provided under the prime minister’s package are having a positive impact, and the export Pigures have shown a noticeable improvement in recent months. The minister stated that Pakistan achieved 5.28 percent GDP growth during FY2016-17,

which is a ten-year high, and the target for FY2017-18 is 6 percent GDP growth. The minister also reviewed the tax and relief measures to be announced in the forthcoming budget. Dar said that improving the well-being of the general public and addressing their needs is the utmost priority of the government in the budget. He instructed ofPicials of the Ministry of Finance and FBR to complete the budget work as early as possible. The Finance secretary, EAD secretary, Commerce

The minister stated that Pakistan achieved 5.28 percent gDP growth during fY2016-17, which is a ten-year high, and the target for fY2017-18 is 6 percent gDP growth

Budget 2017-18: MOhR proposes Rs320m

ISLAMABAD

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www.customsbulletin.com inistry of Human Rights proposed a budget of Rs 320 million for the ongoing and new projects for the next fiscal year 2017-18. According to the official document, Rs 160 million were proposed for the development and non-development expenditure of the main ministry. While Rs 41 million has been suggested for

the functioning of National Commission for Human Rights, adding that Rs 25 million proposed for National Commission on the Status of Women. They said Rs 14 million sought for Family Protection and Rehabilitation Center, followed by Rs 13 million each for National Child Protection Center and Human Rights Regional Office Lahore. Rs 12 million proposed for each National Commission for

Child Welfare and Development and Human Rights Regional Office Karachi besides Rs 11.5 million for Human Rights Regional Office Peshawar and Rs 10 million for Human Rights Regional Office Quetta. Rs 6 million suggested for implementation of National Plan of Action of Children Islamabad while Rs 2 million has been proposed for establishment of Human Rights Defenders Network at 138 districts in the country.

secretary, FBR chairman and senior ofPicials of Ministry of Finance, FBR and SBP attended the meeting. Meanwhile, Khurram Dastgir Khan has said that government was utilizing all channels for the promotion of trade and commerce activities in the country. In this regard business community across the country was being motivated to explore new venues for introducing Pakistani products in unexplored international market,he said.

fIa seizes unregistered medicines ederal Investigation Agency (FIA) Anti-Corruption unit Hazara on Wednesday conducted a raid on unregistered and smuggled drugs at a medical store Qalanderabad, Abbottabad According to the FIA sources, anti-corruption unit along with drug inspector, Abbottabad raided on Frontier Medical Store and found illegal business of unregistered and smuggled drugs.

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Tractor production increases 72.90% in 9 months ISLAMABAD: Domestic production of tractors during ﬁrst three quarters of current ﬁnancial year increased by 72.90 percent as compared the manufacturing of the corresponding period of last year. During the period from July-March, 2016-17, 37,938 tractors were manufactured as against the manufacturing of 21,942 of same period of last year. According the computation of ‘Quantum Index Numbers’ of large scale manufacturing industries, on month on month basis tractor production in the country grew by 48.43 percent as about 6,436 tractors were manufactured as compared the 4,336 tractors of same months last year.

Friday May 26, 2017

Business

Development budget up due to tax collections ISLAMABAD

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inister for Planning Ahsan Iqbal has said that development budget has been increased as a result of proper tax collection. In an interview, he said due to concrete measures of the government, the national economy is improving and strengthening day by day. Ahsan Iqbal said the country’s economic volume has reached up to three hundred billion dollars. He said ten thousand megawatt power projects have been launched under China-Pakistan Economic Corridor to end loadshedding, which would bring economic revolu-

NLC tankers involved in oil theft in kP: fIa ISLAMABAD

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he Federal Investigation Agency (FIA) has claimed that the National Logistic Cell (NLC) tankers are involved in theft of huge quantity of worth billion of rupees crude oil in Karak district of Khyber-Pakhtunkhwa. A report submitted by the FIA to the National Assembly Standing Committee on Petroleum and Natural Resources said that of the 46 tankers found involved in the theft of oil from oil fields (control/own by MOL Pakistan gas and company), 30 were owned by the NLC while 16 were owned by another private contractor, M/S Saadullah Shah.

tion in the country. Meanwhile, Federal Minister for Planning, Development and Reforms Professor Ahsan Iqbal Saturday said

several international investors are eager to invest in the country now due to economic policies of the government. Addressing National Excel-

lency Awards distribution ceremony organised by the Young Engineers Council on the Engineers Day here, he said policies were not responsible for failure but political destability had damaged economy in the past. He said conspiracies against the country had been failed. The minister said Prime Minister Muhammad Nawaz Sharif had approved internship for 20,000 engineers and it was being planned for the next Pinancial year that 100,000 youths would be trained in the information technology. “The China-Pakistan Economic Corridor is a practical picture of PakChina friendship,” he said. Ahsan added that participation of 65 countries in One Belt One Road (OBOR) Conference was an example of success and 100 more countries had requested to join the project.

Computer industry shows concern over ‘rejection’ of budget proposal T

LAHORE

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he computer industry has shown serious concerns over the Federal Board of Revenue’s (FBR) decision of not removing a sales tax anomaly in computer industry through Finance Bill 2017. The computer industry had proposed to the FBR to abolish 17 percent sales tax on such parts in the budget 2017-18 to practically benefit from last year’s conces-

sions of zero-sale tax regime on imports and supply of computer/laptops. The anomaly has not been removed and Finance Minister Ishaq Dar should immediately ask the FBR to review the status of sales tax on computer industry to ensure uniform treatment of sales tax exemption on raw materials as well as finished products, sources said. According to the budget proposals of the industry submitted to the FBR for 2017-18, the FBR had granted exemption from sales tax to laptops and personal com-

puters in last budget to promote genuine imports and render informal and illegal imports as uncompetitive. However, the parts/component assembled inside the computers remained subject to 17 per cent sales tax. This has created a serious distortion in the system and actual benefit of the concession has not been available to the computer vendors. In order to remove the distortion, the FBR must abolish 17 per cent sales tax on component parts assembled inside the computers in budget 2017-18.

Pepsi-Cola, Charoen Pokphand Pakistan join hands LAHORE

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epsi Co Pakistan joined hands with the Charoen Pokphand Pakistan Pvt. Ltd. (CPPK), a company owned by Asian giant Charoen Pokphand Group of Thailand at an elaborate ceremony that was attended by senior leadership teams from both organizations as well as media representatives. Mr. Mohammad Khosa, Director Key Accounts and Capability, PepsiCo Pakistan and Mr. Somchai Tosomsakul, Vice President Food Business CPPK, signed an exclusive agreement for supply of carbonated and non-carbonated beverages to CP Five Star outlets in Pakistan. “We are pleased to partner with PepsiCo for our CP Five Star Brand and explore great business together. With a vision to be Kitchen of Pakistan, we share the aim to serve great quality products to Pakistani consumers with high accessibility and in that process CP is oﬀering great opportunities to the people of Pakistan to grow with us by providing sustainable franchise model of CP Five Star Brand” said Mr. Somchai Tosomsakul, Vice President Food Business of CPPK. “PepsiCo is excited to be partnering with the Charoen Pokphand Pakistan,” quoted Mr. Khosa.

Pak-Saudi trade to increase in coming days: ambassador ISLAMABAD

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akistan’s Ambassador to Saudi Arabia Khan Hasham Bin Saddique has expressed the hope that the volume of bilateral trade between Pakistan and Saudi Arabia will enhance in the coming days. He was addressing the session of B2B (business-to-business) meetings of the delegation of Rice Ex-

porters Association of Pakistan (REAP) with the representatives of rice importing companies of Saudi Arabia at the Embassy of Pakistan in Riyadh, says a message received here. The ambassador said the embassy was ready to extend full support and facilitate the Pakistani exporters in entering and capturing their due share in Saudi Arabian market. He urged the Pakistani industrialists to seize on the new opportunities arising from implemen-

tation of Saudi Vision 2030 so as to boost and strengthen the economy of Pakistan. The delegation was on an eight-day business tour to the Kingdom from May with a view to making efforts for regaining the lost share of Pakistani rice in Saudi Arabian market. The delegation comprised representatives of 12 rice exporting companies of Pakistan and the President of Pak-Saudi Joint Chamber of Commerce & Industry and the Secretaries General of REAP

and the Chamber. They held detailed discussions with their Saudi counterparts and introduced their products portfolio. The Saudi buyers appreciated the quality and aroma of Pakistani rice and showed keen interest in establishing long-term business relations with Pakistani rice exporters. The delegation visited the largest supermarkets and super stores of the central and eastern provinces and held meetings with

their top management to discuss the prospects of increasing the share of Pakistani rice brands in modern trade. Chambers of Commerce & Industry of the two provinces also welcomed the Pakistani delegation to their ‘second home’ i.e. Kingdom of Saudi Arabia and expressed their utmost desire for exchange of business delegations between the two brother Islamic countries on a more-frequent basis.

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ISLAMABAD

M aRShaD

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unisian ambassador Adel Elarbi has said that rationalization of tax rates can attract more and more foreign investors in Pakistan. The concerned authorities and institutions must pay heed towards making the tax payment system simple along with mass awareness campaign across the globe to aware the global investors about the trade and investment potential present in Pakistan. In an exclusive interview with Customs Today here, Adel EIarbi said that process for conclusion of Preferential Trade Agreement (PTA) between Pakistan and Tunisia was in progress and concerned ministries were actively pursuing to obtain this goal; however, the current status of the process was not very much visible at present. At present Tunisia has Honarary Cunsulate Generals at Lahore and Karachi and we are planning to appoint another one in Peshawar too. “9th Joint Ministerial Commission (JMC) is likely to be held this year in Tunisia. It was scheduled to be held in February but postponed but now new dates are being Pinalized. The 8th session of the joint ministerial commission was held in Pakistan in 2012 and was crowned by the signing of eight agreements and memoranda of understanding” he added. He said that economy and trade could bring both Pakistan and Tunisia closer. Tunisia is very attractive destination for in-

vestors and investors can invest in hotels, motels and other sectors related to tourism; we have a long history of tourism. We receive tourist from all over the Europe. He said that Pakistan was also a touristic country but its potential has not been explored so far. Shining side of the country must be rePlected before the world and potential can convert Pakistan as a wonderful touristic destination.

Adel Elarbi said that both Pakistan and Tunisia had extended cooperative hand to each other in a number of sectors; Moreover, both countries support each other’s causes on international forums too. This is why, our President told me to make all out efforts to bring both countries closer to each others. “Pakistan is in a busy part of the world and I am trying to attract my country. Both countries have many similarities in our culture and we share almost the same social, religious and political values” he said adding that he was visiting almost every big city in Pakistan to strengthen ties. To a question about possible strong pillars for the excellent ties between Pakistan and Tunisia, Ambassador said that cooperation in trade and economic sectors could prove to be the strong pillars for further strengthening excellent ties between both the r o f ro c e s s p countries; Pakistan and t a h de aid t a s r Tunisia. “This is why, my prii T l b r tia Ia nd feren adel E ority as ambassador is ecoa e r n P a f t akis on o i P s nomic diplomacy between u n l e c e d con cerne ) bet w Pakistan and Tunisia and I n a T o c P ( d ent s an s m am trying to my authorie o e r t e g r g o ag ursuin s in pr ties to come to Pakistan p a y w l e a i t iv Tunis and explore the existing c u r re n re a c t es we r, the i e r t v s h potential of Pakistan” he e i c w u o m h min y goal; said adding that Tunisia also ot ver n this was n s s possessed huge economic e obtai c o r p t e potential for being gateway to re s e n s of th e at p statu l b i Africa, Europe and Arab World s i v at the same time.

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Friday, May 26, 2017

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EDITORIaL

fitch Ratings report

itch Ratings has appreciated the stability of the Pakistani rupee against dollar even during the troubled times, but expresses dismay over rapid fall in the foreign exchange reserves. In its latest report on the financial state of the economy, it says the State Bank of Pakistan kept the rupee stable against dollar during its periods of appreciation. The ratings, an international ratings agency providing issuer and bond ratings, and research banks, corporations, sovereigns, structured and municipal finance, points out a sharp depreciation of the rupee now. However, it says that recent fall in foreignexchange reserves and widening of the current account deficit are manageable and will not deteriorate international financing conditions of the country. Though the independent economists have always expressed reservations over the three-year IMF programme that ended in September last year, the agency report appreciates the help from the donor agency in bringing general macroeconomic stability. It says that despite sharp decline in foreign reserves, the country would not face externalfinancing difficulties.The real time problems facing the economy is the current accounts deficit which showed marked raise in the third quarter of the current financial year and crossed $2.6 billion. On another note, the remittances sent by expatriate Pakistanis are declining, oil prices are rising in the international market and imports associated with infrastructure projects have significantly increased, adding external pressures on the financial health of the country. Fitch believes the State Bank has been keeping the rupee stable against the dollar for the last one and half years, and increase in deficit will not affect the international financing obligations of the country. The rating agency sees little chances in the widening of the current-account deficit in the near future and financing of the development project by China will offset the effects of deficit due to import of equipment and machinery related to the China Pakistan Economic Corridor projects. The agency affirmed Pakistan’s rating at ‘B’ Stable in February but feared that higher capital imports and gradual recovery in energy prices will further widen the current-account deficit.The government will have to make hard choices as regional stability is being jeopardized by the eternal enemy of Pakistan, India, and it will definitely affect the flow of direct foreign investment in the country.

filling the US coﬀers T

LAHORE

DR afTaB afZaL

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he United States and Saudi Arabian have signed business and arms deals worth billions of dollars to enhance mutual cooperation in various Pields of economy and counter the growing inPluence of Iran in the Middle East. During his Pirst visit to any foreign country, President Donald Trump attended a socalled Islamic conference and ensured the Saudi King of all his help against Iran. Without explaining any valid reasons, Trump also called upon the Arab and Muslim nations to isolate Iran, giving an impression that the military alliance of the Muslim countries is

against none other, but Iran. According to the Saudi energy minister, the bilateral deals involving $200 billion have been signed, showing a growing interest of the US corporate sector in Saudi Arabia. It is worth noting that only Saudi Arabia’s prime petroleum company, Aramco, has signed agreements worth $50 billion with various US Pirms while dozens of Memorandums of Understanding have been signed by the two sides to materialize the deals. Another agreement between Saudi Aramco and National Oilwell Varco of the United States involves drilling rigs and equipment with total investment of $6 billion. The General Electric has signed business deals worth $15 billion, involving almost $7 billion

of goods and services from the company itself while the deals range from the power to healthcare sectors. The US company will also launched various projects and operations in the country, including provision off digital technology, cooperation in the medical research and various training programmes. Another agreement between the two countries will be signed next year to conduct a study on a potential petrochemical project in Texas. The programme also include the production 1.8 million tons of ethylene per year to feed a monoethylene glycol unit. On the defence side, a US company will help Saudi Arabia develop defence, aerospace and security capabilities. It is the right of every country to

devise policies to protect its national interests, but alliance against an Islamic country will only spoil peace in the already volatile region. One fails to understand what has prompted the Saudi authorities to create a Nato-like group in the guise of the Islamic military alliance. The pathetic part of the situation is that Pakistan is also part of it. It seems the policymakers in Islamabad have failed to devise a foreign policy devoid of any foreign pressure. No doubt Pakistanis have great respect for Hejaz, but Iran is also our immediate neighbor and a balanced approach is need of the hour. Pakistanis have religious, cultural and brotherly relations with Iran more than Saudi Arabia and relations with one should not be established on the cost of the other.

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Dubai’s trade with Qatar grew 92% between 2011-2016 DUBAI: Dubai’s trade with Qatar grew 92 per cent in the period from 2011 to 2016, reaching AED15 billion last year, according to Sultan bin Sulayem, DP World Group Chairman and CEO and Chairman of Ports, Customs and Free Zone Corporation, PCFC. “The GCC customs union is moving steadily towards a full integration between the GCC countries by supporting trade between them and helping them attract more global investment and trade to the region. This is why we, at Ports, Customs and Free Zone Corporation, develop means of cooperation and coordination with the Qatari authorities. Dubai external trade with Qatar reached AED 15 billion in 2016 compared to AED 7.8 billion in 2011,” Bin Sulayem said during a meeting a meeting with a Qatari delegation headed by Ahmed Abdullah Al Jamal, Chairman of Qatar Customs Authority.

Dubai Chamber announces winners of Smartpreneur competition DUBAI

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Chambers

Chinese entrepreneurs looking for relevant partners in Pakistan A

RAWALPINDI

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he Dubai Chamber of Commerce and Industry announced on Wednesday the top three winners of the 2nd cycle of the Dubai Smartpreneur Competition during the closing ceremony for the 5th ArabNet Digital Summit in Dubai. FriendyCar, a marketplace for borrowing and lending cars, claimed the first-place prize, while second place went to CorporateStack, a web-based solution for managing business operations. Nester, a parking rental marketplace that connects parking owners with people, placed third. The winners were honoured by H.E. Dr. Aisha Bin Bishr, Director General of Smart Dubai Oﬃce, Mr. Essa Al Zaabi, Senior Vice President – Institutional Support Sector, Dubai Chamber and General Coordinator

20 member Chinese delegation led by Song Zhihui professor and director of Pakistan Study Center of Sichuan University visited the Rawalpindi Chamber of Commerce and Industry (RCCI) to explore business opportunities of joint ventures and trade partnerships in the Pield of construction, building materials, agriculture, Transportation, furniture and real estate sector. Speaking at the occasion Song Zhihui said that they had come to Pakistan in pursuits of the objectives of China’s One Belt One Road (OBOR) project. He said that Chinese delegation had already visited different chambers, cities and observed good potential for Chinese investors in Pakistan’s building material, electronics, agriculture, Transport and textiles sectors. He said that Chinese entrepreneurs were looking for relevant partners in Pakistan to enter into joint ventures in building material, construction, real estate and other sectors for further strengthening bilateral

of Tejar Dubai, in the presence of business leaders and representatives from Dubai’s entrepreneurial community. During his welcome speech, Al Zaabi praised the innovative ideas and projects presented by participants and finalists in the competition, noting that their efforts support Dubai’s smart city vision and add value to people’s lives. He explained that entrepreneurship and innovation are key focuses of Dubai Chamber’s strategy, and described the Smartpreneur competition as an important platform that merges these two themes together. ‘This competition aims to empower talented entrepreneurs and facilitate their contribution to Dubai Smart Office’s mission, while it also helps them turn their innovative business ideas into a reality,’ said Al Zaabi, adding that the Chamber will continue to support participants with training and assistance to help them get their businesses off the ground.

fPCCI oﬃcial suggests export of sugarcane to help local farmers

Friday May 26, 2017

KARACHI

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egional Chairman on Horticulture Exports, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Ahmad Jawad has suggested export of sugarcane to help local farmers meet their production expenses and enhance country’s foreign earning. Talking to a delegation of Sindh Chamber of Agriculture (SCA), led by Ejaz Nabi here on Monday, he said Pakistan, being the Pith largest producer of sugarcane in the world, needed a prudent approach to make optimum of the resource for equal benePit of agriculturists as well as national exchequer. He agreed with the SCA that

cooperation between China and Pakistan. We are happy to see the improved security situation in Pakistan, he added. President RCCI Raja Amer Iqbal in his welcome address said that China Pakistan Economic Corridor (CPEC) has opened new horizons of long term cooperation between China and Pakistan. Its a golden opportunity for Pakistan to revamp and revive its industrial sector, he added. He stressed that Chinese in-

commerce ministry must formally allow sugar cane export so that farmers be in a better position to have proper returns for their crops. FPCCI’s Regional Chairman for Horticulture Exports mentioning that major portion of locally grown sugarcane is crushed at farm level to produce gur (jagger), shakkar and brown sugar, he said farmers must be supported to get these bi-products exported. “There is great demand for brown sugar in many of the countries,” he said and urged authorities to facilitate farmers in this regard. Ahmad Jawad in this context particularly mentioned that Khyber PakhtunKhwa (KPK) is a traditional gur making zone of the country and is not only producing jagger for domestic use but also exports it to

vestors should explore maximum joint ventures with Pakistani counterparts in CPEC projects. He said that many sectors of Pakistan’s economy including real estate, Agriculture, construction, building materials, energy and infrastructure development offered lucrative investment opportunities to foreign investors and urged that Chinese investors should bring technology and machinery to Pakistan to set up industrial units. Raja Amer Iqbal also

other countries. Members of the Sindh Chamber of Agriculture including Sikander Talpur, Mir Amjad Khan Jatoi and other said KPK farmers earn 57% more proPit through production and sale of jagger as compared to what they get by selling sugarcane to sugar mills. It was regretted that farmers’ contribution to sugar industry, the second largest agro based industry in Pakistan comprising 86 sugar mills, was largely ignored.Jawad reminded the Sindh Chamber of Agriculture delegation that Punjab contributes about 68% of the total sugarcane production. Appreciating the efforts of agricultural scientists in the country, he suggested that such a mechanism be devised that may reduce the difPiculties faced by farmers with limited resources.

gave a short summary of RCCI current and future programs including domestic and international exhibitions and trade fairs. He said RCCI is ready to facilitate Chinese business men for business to business (B2B) meetings and match making. Vice President Asim Malik, former presidents, member of the executive committee, chairman International Affairs Dr Inam, trade representatives and a large number of traders attended the meeting.

LCCI urges govt to adequate funds for payment of refunds he Lahore Chamber of Commerce and Industry has urged the government to allocate adequate funds in the federal budget 2017-18 for payment of refunds as businessmen are bearing huge financial cost on their own hard earned stuck-up money. In a statement issued here, the LCCI President Abdul Basit, Senior Vice President Amjad Ali Jawa and Vice President Muhammad Nasir Hameed Khan said that delay in release of huge refunds, that runs into billions, has triggered serious liquidity crunch for the exporters and manufacturers that might lead to closure of several industrial units. They said that long delay in release of refunds to the business community is hampering the growth of the most productive sectors. –CB Report

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Superintendent Sohail Yahya Siddiqui retires Friday May 26, 2017

Islamabad Muzaﬀar Soomro made CommissionerIR (OPS) (whT) in Sukkur ISLAMABAD

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KARACHI: Superintendent Sohail Yahya Siddiqui, an official of Directorate of Intelligence and Investigation, Karachi has retired from services. On attaining the age of superannuation, Sohail Yahya Siddiqui, Office Superintendent (BS-16) stood retired from Government Service with effect from 04.05.2017 (A.N) Meanwhile, Muhammad Muzammil Haq, Appraiser (BS-16), officer of Pakistan Customs has retired from the government service, on attaining the age of superannuation.

Multan DC Saad Rabbani assigns different duties to 12 employees T

ISLAMABAD

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uzaffar Ali Soomro, a BS-19 officer of Inland Revenue Service, has been transferred and posted as Commissioner-IR (OPS) (WHT), Regional Tax Office, Sukkur with immediate effect and until further order. The officer was presently posted as Commissioner-IR (OPS) (IP/TFD/HRM), Regional Tax Office III, Karachi. According to the notification, if the officer is drawing performance allowance, 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. Meanwhile, The competent authority has suspended Muhammad Yasin Wattoo, a Pakistan Customs Service officer of BS-16, with immediate effect. The authority, exercising the powers conferred under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules 1973, has placed the officer.

IRaO Zia-ul-haq exonerated from allegations ia-ul-Haq, an Inland Revenue Audit Officer, has been exonerated from the charges levelled against him. The disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against the officer, posted at Federal Board of Revenue (HQ), Islamabad, vide charge sheet No 2(108)/2009-MIRIII dated 07.03.2017. Ziaullah Khan, Additional Commissioner, LTU Islamabad, was appointed as inquiry officer to conduct inquiry into the charges levelled against the officer. According to inquiry report, the charges levelled against the accused officer were not established.

he Customs Collectorate has issued transfer order of employees, including 5 inspectors, clerks and others. According to details, Deputy Collector Saad Ata Rabbani (Headquarters) has transferred 12 employees of Multan Customs Collectorate in his recent notiPication, assigning new responsibilities. Five inspectors of Bs-16 are posted at various positions of Collectorate. Inspector Muhammad Saleem is transferred from AntiSmuggling Organization to Multan International Airport. Inspector Muhammad Ali posted to Customs General Post Office from AntiSmuggling Organization. Inspector Muhammad Farooq who was per-

forming his duties in the car cell of Anti-Smuggling Organization is posted to Refund and Rebate branch, Customs House Multan. Inspector Ahmad Bin Sohail is relocated from Anti-Smuggling Organi-

zation Multan to Multan International Airport. Inspector Waqas Hameed is posted to Customs Dry Port Multan from Anti-Smuggling Organization. Lower Division Clerk (LDC) Muhammad Imran Khan is

posted to Anti-Smuggling Organization Multan from Customs General Post Office Multan. Havaldar Ameer Shah is transferred from International Airport Multan to AntiSmuggling Organization.

Torkham customs earns Rs203.73m in 15 days I

TORKHAM

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nternational border customs station Torkham earned Rs203.73million of all duty and taxes during the 1st to 15th of May’s Financial Year FY2016-17. During the current month of May FY16-17, the performance showed better than last month April FY16-17. During the last month, business activity at Torkham was almost nil due to closure of Torkham international border. During the initial 15 days of current month of May FY201617, Torkham customs station collected Rs26.38million customs duty (CD) whereas it did Rs0.98million miscellaneous taxes and surcharges. Torkham earned Rs1.22million redemption duty (RD) on imports. During above said period, Torkham generated Rs82.36million sales tax (ST) whereas it did Rs11.74million ST on import of palm oil. Torkham received Rs37.54million additional income tax (AIT).

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Customs Inspector Yasin Wattoo suspended ISLAMABAD: The competent authority has suspended Muhammad Yasin Wattoo, a Pakistan Customs Service officer of BS-16, with immediate effect. The authority, exercising the powers conferred under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules 1973, has placed the officer, presently posted as Inspector at Model Customs Collectorate (Preventive), Lahore under suspension for a period of three months.

aSO seizes non-duty paid vehicles, contraband items worth Rs 2,603m KARACHI

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irectorate General of Customs Intelligence and Investigation (I&I) Anti Smuggling Organization (ASO) has shown tremendous performance during the current year. According to the details, the ASO impounded nonduty paid luxury vehicles, Iranian origin diesel, foreign cigarettes as well as hashish along with other contraband items worth billions of rupees in different raids. The sources in the Directorate General of Customs Intelligence and Investigation (I&I) informed Customs Today that the ASO officers seized contraband items in different raids worth Rs 2,603 million during 105 days of the current year. On the directive of the Director General of Directorate General of

Customs Intelligence and Investigation (I&I) Shaukat Ali and under the supervision of the Director ASO Tahir Qureshi as well as Deputy Director Sadia Sadaf, a campaign was started against the culprits involved in the heinous crime of smuggling, the source said. On the secret information and with the help of informers several raids were conducted across the city during which expensive cellular phones, non-duty paid luxury vehicles, Iranian origin diesel, foreign cigarettes, Indian gutka and hashish was busted, added the source. As per details of the apprehended items forty luxury non-duty paid vehicles including BMW, jeep, Land Cruisers, and Toyota Surf of worth Rs1353 million along with other busted vehicles are in the raids. The contraband items Iranian origin diesel, foreign cigarettes, Indian gutka, hashish, high speed boats and expensive cellular phones of worth Rs50 million also apprehended during the current year.

Friday May 26, 2017

Karachi

accused smuggler Park Lane hospital moves of 350 live tortoises remanded to jail ShC against recovery notices of Rs 102 million C KARACHI

M B RaNa

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M KARACHI

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uhammad Ajmal Siddiqui, proprietor of Park Lane Hospital, has approached the Sindh High Court (SHC), seeking early disposal of his appeals pending before the Commissioner Inland Revenue Appeals-III. Siddiqui had Piled the petition in the SHC, challenging tax notices of Rs 102 million. Counsel for the petitioner stated in his constitutional petition that he is running a hospital under the title of Park Lane Hospital and fulPills all the liabilities properly. On 13/04/2017, Assistant/Deputy Commissioner Inland Revenue Unit-10 Zone-01, Regional Tax OfPice-II, passed the orders for the tax years 2014, 2015 and 2016 making a demand of above mentioned amount. According to the petitioner, he moved the Commissioner Inland Revenue Appeals-III, Zone-III RTO, and filed appeals against the impugned demand notice along with stay applications, however Commissioner Inland Revenue AppealsIII did not decide his appeals yet. Therefore, in the absence of any

stay order, he fears that some coercive action might be taken by the respondents. Citing to Commissioner Inland Revenue Appeals-III, Zone-III RTO, Commissioner Inland Revenue Unit-10 Zone-01, Regional Tax Office-II and Assistant/Deputy Commissioner Inland Revenue Unit-10 Zone-01, Regional Tax Office-II as respondents, the petitioner pleaded with the court to kindly direct the CIR Appeals to decide his appeals within a reasonable period and till final decision of his appeals, tax department re-

strain from taking any coercive measures. Meanwhile, M/s Master Motor Corporation (Private) Limited has moved Sindh High Court (SHC), challenging impugned notice issued by assistant commissioner Inland Revenue Audit UnitIV, 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.

ustoms (Taxation & Anti-Smuggling) Court Judge Syed Faiz Rasool Rashdi remanded accused Baz Muhammad S/o Dost Muhammad to Central Jail Karachi who was booked in a case of smuggling 350 live tortoises (said to be Central Asian Tortoises) valued Rs01.8million approximately. During the hearing, investigation officer produced the abovementioned accused before the court and informed it that on a tipoff, officials of the Anti-Smuggling Organization (ASO) intercepted him who was in possession of five wooden crates carrying tortoises which he brought from Balochistan. After fulfilling formalities, 350 live tortoises were taken into possession and the accused held. The court also ordered the jail authority to produce him before the court on the next date of hearing. According to the FIR, the case was registered in violation of Section 2 (s) 16 and 178 read with Import/Export Control Act-1950 and further read with Balochistan and Sindh Wild Protection Ordinance1972 which is punishable under clauses 8, 9 and 89 of Section 156 of the Customs Act-1969.

Dg Valuation revises customs values of shade net

KARACHI

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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 determi-

nation of values of the said item under section 25-A of Customs Act, 1969. Meetings were held on 1204-2017 & 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 manufacturing 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 Sub-Section (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.

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Dubai Economy new licenses up 12% in Q1 Friday May 26, 2017

World

DUBAI: Dubai Economy saw a 12 per cent increase in business licenses issued during the first three months (Q1) of 2017 compared to the same period in 2016, indicating remarkable optimism among investors and stability across industry sectors. Total number of licenses issued in Q1 2017 was 5,387 as against 4,808 in Q1 2016 while new businesses that took off in Dubai also increased 126.5 per cent year-on-year, from 136 to 308. “New initiatives and innovative sectors being opened up as part of economic diversification and the Expo 2020 continue to provide vast opportunities for businesses and investors in the emirate,” said Omar Bushahab, CEO of Business Registration & Licensing (BRL) in Dubai Economy.

Indonesia arrests Japanese man in reptile smuggling

Canadian oil industry loan to clean abandoned wells OTTAWA

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MOSCOW

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ndonesian authorities have arrested a Japanese man who conservationists say is a major player in the illegal wildlife trade for allegedly attempting to smuggle more than 250 reptiles out of the country. The head of law enforcement at Jakarta’s international airport, Ridwan Alaydrus, said Thursday that Katsuhide Naito was arrested after customs ofPicers found 181 lizards, 65 snakes and seven turtles in his luggage. He said the wildlife seized Tuesday included 12 different species, three of which are endangered. Naito allegedly bought the haul from poachers in northern Sumatra and the Indonesian part of Borneo, Alaydrus said. It included green tree snakes, Borneo lizards and pig-nosed turtles, which are protected under Indonesian law.

Ukraine allows VaT-free gas storage for 3 years kraine now allows VAT-free temporary storage for up to 1095 days (3 years) of natural gas by gas traders in Ukraine’s Underground Gas Storage Network (UGSN). This significantly eases cross-border transportation of natural gas and realistically also opens up opportunities to collaterize stored gas for financing. In accordance with Order No. 292 of 27 February 2017 of Ministry of Finance of Ukraine which entered into force on 4 April 2017 (available in Ukrainian), it is now possible for foreign gas traders to import foreign gas to Ukraine under a “customs warehouse regime” allowing storage of natural gas for a period of up to 1095 days (3 years) without payment of VAT or customs duties. The regime also allows for transfer of ownership to the gas among non-residents and subsequent export of the gas without paying Ukrainian VAT. –CB Report

Naito was arrested before boarding a Plight to Japan. His travel documents indicated he is a frequent visitor to Indonesia, holding Platinum Elite Plus status with the country’s national airline, Garuda. Alaydrus said the man could be charged under Indonesia’s animal quarantine law, which carries a penalty of up to three years in prison and a fine. The Wildlife Con-

servation Society’s Indonesia program said it hopes Naito will also be charged under conservation laws with a maximum prison term of five years. The group’s crimes unit manager, Dwi Adhiasto, said Naito was a “big player” in the wildlife trade and was previously arrested in Australia in 2005 for smuggling 39 exotic reptiles from Southeast Asia.

Uk conservative party pledges ‘tougher’ tax adviser rules

he UK’s Conservative Party has said it plans to impose “tougher regulations” on tax advisory Pirms, pledging to step up the Pight against aggressive tax planning before next month’s general election. In its manifesto for the June 8 election, the party said it will “go further” in targeting tax evasion and avoidance and “will legislate for tougher regulation of tax advisory Pirms” in the U.K. The party will

“take a more proactive approach to transparency and misuse of trusts,” it added. Led by Prime Minister Theresa May, the party’s announcement comes as Her Majesty’s Revenue and Customs, the U.K.’s tax authority, aims to raise an additional 5 billion pounds ($6.5 billion) a year by 2020 through tackling abusive tax arrangements, aggressive planning, and tax system imbalances. –CB Report

he oil industry in Canada’s resource-rich Alberta will be on the hook for a C$235 million ($172.7 million) government loan to clean up a rising number of oil wells abandoned by owners who have gone bankrupt, the province said on Thursday. The loan, repayable over 10 years, will go to the government-run, industry-funded Orphan Well Association (OWA), which cleans up wells for which no party is legally responsible, Alberta Premier Rachel Notley said at a news conference. The number of so-called orphan wells in Canada spiked after the 2014 oil price crash as layoffs swept the oil patch and companies went bankrupt. Alberta, which produces

about 80 percent of Canada’s crude, had more than 1,500 orphan wells in February, up from 26 in 2012. The loan is lower than the C$500 million an industry group asked for in 2016. The OWA will double indefinitely its levies charged to all petroleum producers to a total of C$60 million a year, starting in 2019, Notley said. That, however, could be adjusted in the future based on how many orphan wells are left, said Brad Herald, OWA chairman and vice president of western Canadian operations for the Canadian Association of Petroleum Producers industry lobby group. Notley said part of the loan, C$30 million, comes from the federal government, which in this year’s budget allocated C$30 million to Alberta to stimulate economic activity and employment in the resource sector. Cleaning up the wells will create 1,650 jobs over three years, she said.

german labor tax burden too high: IMf

ermany should reduce its “large and increasing tax burden on labor” to boost employment in the country, the International Monetary Fund (IMF) has said. It said that better than expected tax revenues will give the country “space” to implement the reform. A recent study by the Cologne Institute for Economic Research (IW) into the distribution of the tax burden in Germany found that middle-income taxpayers pay almost half their income in taxes. The study found that, in general, those with the broadest shoulders bear the highest burden, with the

top 10 percent of households in terms of income contributing almost half of total income tax revenue. Meanwhile, German exports rose to a new record high in March, but were outpaced by imports to slightly narrow the trade surplus, while factory production dropped slightly, according to two reports Tuesday from Europe’s largest economy. Germany has been oft criticized by the U.S. and others for its large trade surplus over accusations its exports have been proPiting from a relatively weak euro, and that the country’s not doing enough to spur domestic demand for foreign goods. –CB Report

Belgium fairness tax system violates EU law, court rules

BRUSSELS

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elgium’s fairness tax system is incompatible with EU freedom of establishment concepts and the parent-subsidiary directive, the Court of Justice of the European Union (ECJ) ruled in a May decision (Case C-68/15).

Belgium’s fairness tax legislation provides a separate assessment from the corporation tax and the non-residents’ tax. The tax applies where, for the same tax period, dividends are distributed and the company’s taxable proPits are wholly or partly reduced by applying the various deductions provided for by the national tax system. The objective of this legislation is

to tax income falling within the Belgian tax jurisdiction which, owing to such use, was distributed without having been subjected to corporation tax, with regard to resident companies, or to non-residents’ tax, as regards non-resident companies, in that Member State. The rate tax is Pixed at 5.15 percent of the dividend. The ECJ ruled that the Belgian fairness tax is inconsistent with article 4

of the parent-subsidiary directive insofar as taxation exceeds the 5% ceiling provided by the directive. The Belgian system gives rise to a double taxation that is prohibited by the directive, the Court concluded. On the other hand, the fairness tax does not violate article 5 of the directive, the Court said, as the tax does not constitute a withholding tax within the meaning of that provision.

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Finland records strong goods exports growth in Q1 HELSINKI: In March, Finland recorded strong growth in goods exports. For the first quarter Finnish goods exports came in strong. Demand has bolstered in the euro area and outside the EU. The value of Finnish goods exports were up 17 percent in March and in the first quarter on a year-on-year basis. The seasonally adjusted first quarter growth is estimated to be one of the strongest export quarters since the end of 2010, noted Nordea Bank. The release from the Customs implies that, unlike January, data for March was not stimulated by any single extraordinary item. Rather, it seems that export growth was quite widespread with robust support from electro-technical products, steel and refined oil products.

abu Dhabi Customs foils attempt to smuggle 3kg of narcotics nspectors from the General Administration of Customs Abu Dhabi have foiled an attempt to smuggle three kilograms of narcotics at the Al Ghuwaifat Border. Working in coordination with the Drug Enforcement Section at Abu Dhabi Police, the customs oﬃcers found the narcotic substances hidden in the roof of a truck’s interior. After initial suspicion, inspectors subjected the vehicle to a detailed inspection alongside officers from the Abu Dhabi Police Drug Enforcement Section. During the inspection, oﬃcers found a hidden compartment in the cabin of the truck. The compartment contained brown bags with a substance suspected of being a narcotic and weighing three kilograms. Inspectors issued a seizure report, seized the suspected narcotics and transferred the truck driver to the authorities to take the necessary legal action. Commenting on the incident, Mohamed Khadem Al Hameli, Acting DirectorGeneral of the General Administration of Customs Abu Dhabi. –CB Report

World Customs

CBP oﬃcers at anzalduas Port of Entry seizes cocaine

ortugal recorded a 30% growth in exports to Qatar in the first two months of 2017, Prime Minister Antonio Costa has said. Costa, who led a trade and investment delegation to Qatar yesterday, said Portuguese exports to Qatar increased 61% in 2016, which reflects “the interest of Portuguese companies” in the Qatari market. He noted that HH the Emir Sheikh Tamim bin Hamad al-Thani’s scheduled visit to Portugal in July will help strengthen trade relations between both countries. “In 2016, the bilateral trade was only about €42mn, an increase of about 15% compared to 2015. In 2015, around 250 Portuguese companies exported various goods to Qatar. –CB Report

hong kong Customs seizes suspected prohibited weapons ong Kong Customs yesterday seized about 33 000 suspected prohibited weapons from a container at the Tuen Mun River Trade Terminal Customs Cargo Examination Compound, including Chinese-style throwing darts and knives the blade of which is exposed by a spring. The estimated market value of the seizure was about $2.2 million. Through risk assessment, Customs officers inspected a container arriving in Hong Kong from Huangpu, the Mainland, destined for United States of America. Upon inspection, Customs officers found the suspected prohibited weapons in the container. Investigation is ongoing. Under the Weapons Ordinance, any person found guilty of possessing any prohibited weapon is liable to a maximum fine of $10,000 and imprisonment for three years. Meanwhile, Hong Kong Customs yesterday seized 735 suspected smuggled central processing units with an estimated market value of about $650,000 at Man Kam To Control Point. Customs officers intercepted an outgoing lorry at Man Kam To Control Point for inspection yesterday evening and seized 735 central processing units inside the altered differential unit. The 42-yearold male driver was arrested. Investigation is ongoing. Smuggling is a serious offence. –CB Report

Portugal eyes exports boost to Qatar: PM

Friday May 26, 2017

HIDALGO

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S Customs and Border Protection on May at the Anzalduas International Bridge seized alleged cocaine valued at $186,660 during an enforcement action, according to a news release. The seizure occurred after CBP ofPicers referred a green 2006 Volkswagen Jetta driven by a 24year-old female from Pharr for a secondary inspection, the news release states. After a physical inspec-

tion of the vehicle with the use of a non-intrusive imaging inspection and the assistance of a canine team, ofPicers discovered 10 packages allegedly containing approximately 24.21 pounds of cocaine, according to the news release. CBP OFO seized the narcotics along with the vehicle, arrested the driver and turned her over to the custody of Homeland Security Investigations agents for further investigation, the release said. Meanwhile, The US Customs and Border Protection Agency withdrew its notice of proposed modiPication and revocation of a series of letter rulings relating to its position on the application of the coastwise laws to

the movement of certain types of merchandise and equipment between coastwise points. Under the coastwise laws, “merchandise” must be carried aboard U.S. Plagged Jones Act qualiPied vessels, while “equipment” may be carried aboard foreign Plagged vessels. The rulings subject to the revocation proceeding were related to the dePinitions used for these terms. Historically, Customs had taken the position that vessel “equipment” constituted items “necessary and appropriate for the navigation, operation or maintenance of a vessel and for the comfort and safety of the persons on board.

greece forced to cut pensions and increase tax again

G ATHENS

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reek’s parliament has approved pension cuts and tax hikes sought by the country’s lenders to unlock vital Pinancial aid. As the measures were passed by lawmakers on Thursday night angry demonstrators protested outside parliament over the latest bout of austerity for Greeks since the country was plunged into crisis seven years ago.

The leftist-led government hopes that legislating the measures, four days before euro zone Pinance ministers meet in Brussels, will convince its lenders to release a €7.5 billion bailout tranche and grant it further debt relief. It is now up to the lenders to make good their promises, Prime Minister Alexis Tsipras told journalists. “We deserve and we expect from Monday’s Eurogroup a decision regulating debt relief which will correspond to the sacriPices of the Greek people,” he said, referring to a

meeting of euro zone Pinance ministers on Monday. Lenders have agreed in principle to debt restructuring but not on details. Shortly before the measures were approved just before midnight, some protesters hurled petrol bombs and Pirecrackers at police guarding the legislature. They responded with tear gas. Greece has seen its national output shrink by a quarter since it was Pirst forced to seek external Pinancial aid in return for spending cutbacks in 2010. The government, sagging in opinion

polls, hopes a conclusion by lenders of its reforms progress, coupled with a restructure to bring down a mountain of overhanging debt, will allow Greece to be included in the European Central Bank’s asset-buying programme and return to bond markets in the coming months. Athens needs aid to repay debt maturing in July. It agreed to adopt more austerity, which will be implemented in 2019 and 2020, to convince the International Monetary Fund to participate Pinancially in its latest €86 billion bailout.

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Man arrested for doing illegal business Friday May 26, 2017

Lahore

LAHORE: The Federal Investigation Agency (FIA) has raided a travel agency at Susaan Road in Faisalabad and arrested its owner for being involved in illegal business of Hajj and Umra. According to a FIA spokesman, accused Ateequl Qamar was running the business of Haj and Umra without having a licence. Meanwhile, Federal Investigation Agency’s (FIA) Anti-Human Trafficking Circle here Wednesday arrested two human traffickers and recovered five Pakistani passports, five fake Spanish visa stickers from their possession.

Customs court remands MD Orient to jail for alleged Rs4b tax evasion

Customs I&I impounds 2000 non duty paid mobile phones

LAHORE

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M IMRaN MEhaR

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he Special Federal Court of Customs Taxation and AntiSmuggling approved a 14day judicial remand of an accused involved in mega tax evasion scam in Lahore. Managing Director of a Pakistan’s leading electronic manufacturing company was arrested by the Inland Revenue Department Lahore. He was allegedly involved in a huge amount of tax evasion. The total amount of the tax evasion is Rs04billion which is one of the largest tax evasion cases of Lahore. Investigation team of the FBR presented the accused before the court of a special judge Masood Arshad and asked for physical remand

PRa imposes tax of Rs470m on Pakistan Railways he Punjab Revenue Authority (PRA) has imposed sales tax of Rs 470 million on Pakistan Railways for their services. Earlier the PRA had sent a final notice to Pakistan Railways to pay their outstanding tax of Rs465 million. According to details available Customs Today, the Punjab Revenue Authority has imposed sales tax on Pakistan Railways. Punjab Revenue Authority had issued final notice last week for sales tax on freight services of Pakistan Railways. Sources said that Pakistan Railway will have to pay huge amount of Rs 470 million. It is pertinent to mention here that PRA has also warned Pakistan Railways to pay their tax otherwise stern action will be taken against Ralway to recover this amount which may also led to attachment of their bank accounts. On inquiring from PR in this regard Railways said that oﬃcial version will be issued to media very soon. –CB Report

to dig out more characters behind the mega tax evasion scandal. On request, customs court approved a two-day physical remand of accused Mian Talat Mehmood, MD of Orient Group. Now he was produced before the court again after completion of physical remand and remanded to jail. The Inland Revenue Lahore had registered a case against the accused on alleged tax evasion and fraud. Meanwhile, The Chief Justice of the Lahore High Court (LHC) has issued a notiPication for appointment of a new judge of the customs taxation and anti-smuggling court. According to the notiPication, Shakeel Ahmad has been appointed as the new customs judge in special federal court of customs taxation and anti-smuggling Lahore. Shakeel Ahmad was in waiting list to be appointed in court. He has worked as district and sessions judge in many districts of Punjab.

LAHORE

M haYaT

ustoms Investigation and Intelligence has impounded 2000 non-duty paid mobile phones which were being transported to Pattoki, sources told Customs Today here. The sources said that on information that assorted type of 2000 non duty paid mobile were being transported to Pattoki, the customs authorities intercepted a pickup at Hall Road. The customs authorities demanded legal clearance documents but the owners failed to produce any legal clearance document against the 2000 mobile phones. The customs authorities seized the illegally imported mobile and registered a case and started further investigations. It was said that the customs authorities have

claimed that the Rs8 million duty and taxes were to be paid by the owners on the mobile phones but they instead of paying duty taxes opted to smuggle the mobiles inPlicting millions of rupees losses to the national exchequer. Meanwhile, Customs Preventive Anti-Smuggling Organization (ASO) has impounded 326 non-

duty paid air-conditioners, 25 washing machines and 34 geezers from Abid Market. According to the details, the authorities seized the non-customs paid items from the godown of Afzal, Raheem and Ghulab Khan. The sources said that the total value of the non-duty paid items has been estimated at Rs1.5 million.

Court approves judicial remand of Vital Tech found tax defaulter of Rs23m he Federal Board of Revenue accused involved in cloth smuggling wrote a letter to the Excise De-

he Special Federal Court of Customs Taxation and Anti Smuggling has sent three accused persons to jail on extension of judicial remand of 14 days in smuggling of Indian made saris. According to details available Customs Today three accused namely Sajjad Qureshi, Abdul Sattar and Hammad Ahmad were arrested by the customs authorities when they were making attempt to smuggle huge quantity of Indian made saris. Investigation team of Customs

Preventive produced them before the court and asked for three days physical remand. On request of the investigation team customs Court handed over them to the investigation team for further investigation. During hearing of the case accused Sajjad Qureshi asked for pardon from the court and said that this is their Pirst mistake. The honorable court stated that you people are lucky that you have arrested in your Pirst attempt, its mean God has saved you from sins. –CB Report

partment against the Vital Tech Company as it is defaulter of Rs23million. The Vital Tech Engineering Services was found defaulter of taxes. Inspectors of FBR Waqar Hussain Shah and Muhammad Akram Haider have taken the action against the company. Sources told Customs Today that the FBR has frozen the bank accounts of the company. The FBR has directed the excise to stop the clearance of vehicles that are being sold by the Vital Tech. The Federal Board of Revenue informed

the excise through a letter to stop the sale of Honda Prius LEA-807 which is a property of the owners of the Vital Tech. Owner of Vital Tech Muhammad Ameen is a defaulter of Rs20.3million. –CB Report

NaB obtains remand of accused involved in illegal recruiting

N LAHORE

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ational Accountability Bureau (NAB) has got 12 days remand of an accused who is involved in embezzlement of huge amount and illegal recruiting. National Accountability Bureau (NAB) has arrested the former vice

chairman of Evacuee Trust Property Board Chaudhry Muhammad Ali over charges of embezzlement worth Rs1.87 billion through M/s. High Links (Pvt) Limited. According to a National Accountability Bureau spokesman, Muhammad Ali was working in the ETPB as vice chairman (Grade-20) and Rs200 million were embezzled during his tenure.

He was arrested from Askari 10 Villas. A co-accused, Chaudhry Muhammad Imran, holds 5 per cent shares of M/s High Links (Private) Limited which seized functioning after getting huge amounts from investors. He was arrested from Shalimar Town, Lahore. NAB, after producing accused Muhammad Ali and Muhammad Imran before an accountability court, obtained their

12-day physical remand for investigations. Meanwhile, Director General National Accountability Bureau (NAB) Lahore Shahzad Saleem on Tuesday handed over a cheque worth Rs 4.2 million, the amount recovered from FESCO defaulters, to FESCO Chief Executive OfPicer Mujahid Islam. According to NAB spokesman, FESCO had contacted NAB Lahore in 2016.

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Iranian firms to build wide-body ships TEHRAN: Industrial Development and Renovation Organization of Iran (IDRO), Islamic Republic of Iran Shipping Lines (IRISL), and National Iranian Tanker Company (NITC) have signed a contract to build and repair ships. Speaking at the contract-signing ceremony, Iranian Minister of Industry, Mine and Trade Muhammad Reza Nematzadeh pointed to the significance of establishing a joint firm for building and repairing ships asserting “the partnership holds importance in view of production and design capabilities of Iran Shipbuilding and Offshore Industries Complex Company (ISOICO) as well as that the two domestic customers are NITC and IRISL.”

Ports of Los angeles and Long Beach turn in strong volumes ollowing a very strong month of March and first quarter overall, April volumes at the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) again shined, according to data recently issued by the ports. POLA and POLB are the two largest North American ports, and they collectively account for more than 40 percent of U.S. imports. Total POLA April volume was up 8.9 percent annually to 714,755 TEU (Twenty-Foot Equivalent Units), with port oﬃcials saying this marked the best-ever performance for the month of April in the 110 years the port has been in operation, topping April 2012, which came in at 707,182 TEU. What’s more, the port’s most recent five-year average for April volumes is 674,540, with April’s volumes standing as a 6 per-

cent gain over the five-year average. POLA April imports saw an 8.3 percent annual gain to 372,040 TEU, while exports rose 9.4 percent annually to 157,661 TEU. Empty containers increased 9.8 percent to 185,052 TEU. “April was the first month of new vessel alliance deployments around the globe, and we are pleased that the Port of Los Angeles provided worldclass service and eﬃciency at our terminals,” said POLA Executive Director Gene Seroka in a statement. “We continue to seek new ways to improve operations, such as our new partnership with GE Transportation that will allow data access to our stakeholders that has never been seen before in our industry.” On a year-to-date basis through April, total POLA volumes are up 10 percent annually compared to the first four months of 2016. –CB Report

Ports & Shipping

Ethiopia to benefit 19% share of the Berbera Port Services WASHINGTON

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omalia’s breakaway region of Somaliland has confirmed that it has accepted a demand by the Ethiopian government to get the right to access of the Berbera Port in Somaliland, Presidential spokesman said. UAE’s Dubai Ports World or DP World Port is contracted to manage the operation of the Berbera Port for 30 years in a controversial leasing agreement. “We have not decided on our side. It is the DP World that gave the Ethiopian Government to have 19% of access and usage of the port.” Somaliland Presidential Spokesman, Hussein Ige Dayr said in a press conference in Hargeisa on Saturday. He said Somaliland administration will maintain its role as supervising the managerial system of the port while Ethiopia will be the main consumer of the port services. In Mid last year, the global ports operator company managed

to secure a landmark controversial deal which gives it the access to manage and control the operation of Somalia’s Red Sea Port of Berbera for 30 years by investing $442 during that period. The deal immediately faced challenges after Somaliland lawmakers questioned the motive of the agreement and bringing a suspicion on how DP World attempts to cease the competitiveness of the Berbera Port since DP World also manages the Doralleh Port in Djibouti. But in a

press statement in May last year, DP World Group chairman and Chief Executive Officer Sultan Ahmed bin Suleyman said its deal with Somaliland compliments the company’s investments in Djibouti and will also serve landlocked countries in East Africa. Ethiopia is a landlocked country which in the past relied on its usage of the Djibouti ports following the Eritrea-Ethiopia war which forced Ethiopia to look for alternative ports in the region.

Friday May 26, 2017

Port of Charleston handles biggest ship to date he largest ship to ever come to the East Coast called on the Port of Charleston over the weekend. The Cosco Development arrived Saturday morning and departed Sunday evening. The 13,000-TEU ship able to handle the equivalent of 13,000 20foot containers is now making its way to Hong Kong. The ship measures 1,200 feet long as long as the Eiffel Tower is tall and 158 feet wide. If two Washington monuments were laid end to end, they would equal the ship’s length. Larger ships are trending in the shipping industry, spurring major infrastructure improvements, terminal renovations and equipment purchases. For the S.C. State Ports Authority, this means building a new terminal in North Charleston, updating the Wando Welch Terminal in Mount Pleasant and deepening Charleston Harbor to 52 feet. The deepening project has been approved by regulators and received state funding; the project still awaits federal funding. Dredging for the project is set to begin in the fall. –CB Report

SC Ports hails biggest ship ever to call East Coast CHARLESTON

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n the heels of record-breaking container volumes in March and April, South Carolina Ports Authority celebrated another milestone with the arrival of the biggest container ship ever to call the US East Coast. “The deployment of 13,000 twenty-foot equivalent (TEU) vessels to East Coast ports marks a new era in the global container shipping industry,” said SCPA president and CEO Jim Newsome. “The importance of our port and state’s investments in terminal and infrastructure improvements, additional capacity for volume growth and a deeper harbor are evident with the arrival of the COSCO Development. It is a truly exciting day to see our new super post-Panamax cranes working a ship of this

size, and we are proud to be the last Southeast port of call.” SCPA is expected to move approximately 3,300 containers on and off the COSCO Development, setting a new record for crane moves handled by the Port. “Our ports are one of the most integral pieces to South Carolina’s economic engine that continues to grow every day, and the COSCO Development’s arrival at the Port of Charleston is a symbol of our state’s competitiveness in the global marketplace,” said South Carolina Governor Henry McMaster. “We will continue to work with everything we have to make sure our harbor is deepened to 52 feet to further allow big ships to call Charleston, which will take our state to a level of prosperity we have never seen.” The COSCO Development, a 1,200 feet long and 158 feet wide vessel transporting up to 13,092 TEUs, is deployed on the weekly OCEAN Al-

liance South Atlantic Express (SAX) service connecting Charleston with Hong Kong, Yantian, Ningbo and Shanghai via the Panama Canal. Today 18 of SCPA’s 24 weekly container vessel services are comprised of ships too large to transit the Panama Canal prior to its expansion. “We have worked hard to ensure the South Carolina Ports Authority remains a competitive, top 10 U.S. container port,” said Senator Larry Grooms, Chairman of the Review and Oversight Commission on the State Ports Authority. “It is exciting to see Charleston as the last port of call for the largest ship ever to visit the East Coast, and there is no doubt that today is the Pirst of many signiPicant milestones ahead for our port system.” Further supporting the Port’s ability to handle 13,00014,000 TEU vessels are the Charleston Harbor Deepening project to 52 feet, scheduled to begin

this fall; the completion of a wharf strengthening project at the Wando Welch Terminal in conjunction with investments in bigger cranes; and the construction of the Hugh K. Leatherman, Sr. Terminal. Meanwhile, The Port has also received performance indications for the destination from the cruise industry that show the destination is performing well. The Cruise Lines International Association (CLIA) recently released its first Cruise Industry Consumer Outlook of 2017 that revealed traveller insights, outlooks, and attitudes regarding cruising and land-based travel. Cruise travel is becoming more popular and awareness more favourable among all types of travellers. Of those asked, nearly twothirds (64 per cent) said their overall awareness of cruise vacations has improved within the last two years.

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Khushab FIU impounds trailer with smuggled dates valued Rs09.1m FAISALABADI: The Field Investigation Unit (FIU) Khushab of the Customs Intelligence and Investigation Faisalabad confiscated foreign origin (F/O) Iranian dates worth Rs09.1million involving customs duty and taxes of Rs990000 besides impounding a trailer valued Rs02.3million being used for transportation of smuggled dates. Superintendent Muhammad Tahir received a tip-off about some smuggling attempts. He immediately constituted a customs team comprising Intelligence Officers Muhammad Saleem and Ansar Saleemi.

Friday, May 26, 2017

CUSTOMS BULLETIN

Multan Customs generates Rs7.712m through auction of vehicles, goods MULTAN IMRaN aLI

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he Customs Collectorate generated Rs7.712 million through the auction of confiscated vehicles and miscellaneous goods. According to details, Multan Customs held public auction of non-customs paid vehicles and various conPiscated smuggled goods for the month of May in Multan Customs House ofPice near LMQ Road Kalma Chowk. Multan Customs offered 9 various lots of conPiscated vehicles for public auction and seven vehicles were sold out after effective bidding. These seven vehicles includes Toyota Corolla (G),Toyota Corolla, Toyota Axio, Toyota Corolla X and others were auction in worth Rs.6.955 million . Two vehicles Toyota Hiace van and Toyota Corolla were rejected during the auction process. The Multan Customs Collectorate has sold out various miscellaneous goods including HSD oil, mobil oil, grease, dry batteries worth Rs6.95 million during the auction. All these auctioned vehicles and goods were seized by Anti-Smuggling Organization in their various

anti-smuggling operations in Multan jurisdiction. Auctioneer Rana

Muhammad Akram conducted the auction process and Assistant Col-

lector Zohaib Sandhila supervised the whole auction process along

with Inspector Zia Bhatti to ensure the transparency.

Court issues arrest warrants for suspects involved in tax fraud case KARACHI

M B RaNa

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ustoms Court Judge Syed Faiz Rasool Rashdi has issued non-bailable arrest warrants against Anwar Raza Shah and Mustafa Hussain of M/s Vital Trade International. Both the suspects were booked in a mega sales tax fraud case and were absconders. During the hearing, investiga-

tion ofPicer produced an interim charge sheet against them and informed the court that they were involved in mega tax fraud and were still absconders. He submitted that the customs ofPicials were trying to arrest them. After his arguments, the court accepted interim challan and directed the investigation ofPicer to arrest them and produce them in the court. According to the prosecution, case was registered in violation of commission of tax fraud as envisaged under section 2 (37) and violation of the Sales Tax Act 1990 read with SRO 670 (1)/2013 dated

18/97/2013 read with 5th schedule to the Sales Tax Act 1990 punishable under section 33 (13) along with default surcharge under section 34 ibid. Meanwhile, Customs (Taxation & Anti-Smuggling) Court Judge Syed Faiz Rasool Rashdi granted an interim pre-arrest bail to accused named Fahad Idrees S/o Muhammad Idress booked in a case of non-duty-paid/smuggled Toyota Crown Saloon car with registration N0: BEZ-998. During the hearing, accused moved an application for pre-arrest bail. The counsel argued that his

client is innocent and was falsely implicated in this case. His counsel moved application for protective bail before the High Court of Balochistan, Quetta, which granted his 18-day protective bail against the surety of Rs500000 and now accused surrendered himself to this court. After his arguments, court granted his bail and observed in its order that “Without touching the merits of the case, an interim pre-arrest bail is granted to accused by furnishing surety in the sum of Rs200000 each with PR bond in the like amount to the satisfaction of this court. The court also directed accused to join investigation if and

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when required by the investigation ofPicer and appear before the court on the next date of hearing. The court also called the police papers and issued notice to special prosecutor for the Customs Department. According to the prosecution, on a tip-off dated 12/08/2016, ofPicials of the AntiSmuggling Organization recovered the said car on RCD Highway near Customs Moachko Choke Point Karachi. After the formalities, a case was registered against the accused in violation of Section 2 (s) 32 and 178 of Customs Act-1969 punishable under clauses (8) (89) and (14) of section 156 (1) ibid.