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Karachi, Tue May 30, 2017
ISLAMABAD
M FAIZAN
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hairman Federal Board of Revenue Dr. Muhammad Irshad has said there is no room for corrupt elements in FBR that is why we have dismissed 17 ofTicials in the last month on the charges of corruption, misconduct, misuse of authority and so on. We have also charged dozens of ofTicials of FBR with different
charges and imposed minor and major penalties on them in last few months. Talking to Customs Today during a visit to FBR stall at P-Block Auditorium along with Member Customs Zahid Khokhar, chairman said no ofTicer or employee of the FBR is above the law. This is a wrong impression that in inquires corrupt elements are freed from all charges, he emphatically said. Still dozens inquires are pending against many ofTicers and employees
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and until the Tinalization of the inquiry report, no one can be declared innocent, he stressed. The corrupt will have to face the music, he vehemently said. In response to a question, he said if any taxpayer has a complaint against any RTO or any other department of FBR including customs, let us know by writing and the department will take strict action against the culprit. This is my message to all those elements who are involved in corrupt practices, he added.
Govt to tighten grip around tax defaulters: Ishaq Dar
‘Business friendly environment key to attract local, foreign direct investment’
Punjab govt sets up over 318 Ramadan Bazaars under Rs9b Package
Customs Preventive foils bid to smuggle non duty paid cigarettes
DG Valuation revises customs values of switches, sockets vide VR No 1165/2017
Dar, cleared that no new tax had been levied in the federal budget | See pAge 02 |
Thebusinessfriendlyenvironmenttoattract localaswellasforeigndirectinvestment | See pAge 03 |
CM Shehbaz Sharif said that historic Ramadan package of over Rs 9 billion | See pAge 04 |
Customs Preventive team deputed at Lahore Airport have foiled bid to smuggle | See pAge 14 |
DG of CustomsValuation has revised the customs values of switches and sockets | See pAge 16 |
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Islamabad car cell impounds BMW car valued Rs5.5m Tuesday, May 30, 2017
National
ISLAMABAD: Special car cell, directorate general customs intelligence and investigation, the Federal Board of Revenue Islamabad, has impounded a non-dutypaid smuggled BMW car worth Rs5.5million. On a tip-off, staff of the special car cell intercepted the non-duty-paid car with a fake registration No. IDD-9076 Islamabad Modelled 2004 near F-8 Markaz Islamabad. The car was possessed by a Chinese national named Zhou. On demand, Zhou failed to produce any legal proof or lawful possession regarding the registration, import or payment of leviable customs duty and taxes.
govt to tighten grip around tax defaulters: Finance Minister Ishaq Dar
FBr asked to grant duty concession on import of generators KARACHI
ISLAMABAD
M ArShAD
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he representatives of textile industry have asked the Federal Board of Revenue (FBR) to allow duty and tax concession on import of generators above 1,100 KVA. The industry, in its budget proposals for fiscal year 2017-18, said Pakistan is passing through the most difficult phase of its history due to the energy crisis which has hurt the viability and competitiveness of the export-oriented textile units in the international market. The country’s energy demand has grown at an annul consumption growth rate of 8 to 10 percent per annum. Therefore, there is a dire need of sustainable growth in energy supply and infrastructure capacity of about 10 percent per annum to support the steady growth in the country’s GDP. The government in the federal budget 2014-2015 had levied import duty at 5 percent on generators above 1100 KVA which has not only increased the cost of operation of textile units resultantly our products become uncompetitive in the international market as the cost of doing business in Pakistan is much higher than its competitors in the region.
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www.customsbulletin.com ederal Finance Minister Ishaq Dar, cleared that no new tax had been levied in the federal budget that would adversely affect the public, however, income tax defaulters will be dealt with strictly. The government will continue to tighten grip around nonTilers of tax returns to bring them into the tax net. Dar also announced that the Rs180-million export relief will continue in the next Tiscal year as well. He further forecast that the current government would present the sixth federal budget next year which would be unprecedented in the history of Pakistan and no constitutional amendments are needed in this regard. “This is the best time to evolve consensus on the charter of economy for sustainability and achievement of socio-economic goals and macroeconomic stability. We should make a charter of economy and work towards the goal together. Even the [United Nations’] Sustainable Development Goals should be worked on by taking our economy into consideration” the Finance Minister observed while speaking at post budget news conference here. Finance Minister said that main focus of the new budget was on economic growth, job creation, poverty
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alleviation and improving living standard of the common man. The government will have to work hard with unity to strength the economy of the country. He said that work hard would be needed to sustain the 3.4% growth in agriculture sector and Rs1001 billion had been allocated for agriculture credit. Two million small farmers with less than 12.5 acres lands will be given loan up to Tifty thousand rupees at 9.9 pct interest rate.
He further added that relief had also been given to farmers and poultry farmers by decreasing sales tax which would also have a positive impact on agriculture. The government will bear Rs13.8 billion loss for decrease of sale tax on DAP fertilizer. The minister said that defence had been given preference in the budget and had been allocated Rs920 billion. Rs1001 billion have been allocated for Public Sector Development Programme (PSDP)
which will reach Rs2100 after inclusion of the provincial PSDP. He said the main targets are GDP at 6% and inTlation 6% and the current expenditure would be kept below the inTlation to reduce the budget deTicit. The actual tax in this budget was 87 billion rupees because the total tax is 120 billion and 33 billion was relief. Similarly, he said that safety net had been increased with Rs 121 billion rupees.
customs detects rs61 million evasion of anti-dumping duty P
KARACHI
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akistan Customs has detected evasion of over Rs61 million on account of levy of provisional anti-dumping duty on dumped imports of wall and Tloor tiles into Pakistan originating in and exported from China. According to details, information has been received that some unscrupulous elements are misdeclar-
ing name of their Wall/Floor Tiles Supplier from China in order to avoid imposition of correct rate of anti dumping duty. It was also learnt that the correct name of supplier may be ascertained from EIF (Electronic Import Form) submitted by the importer at the time of Tiling of GD. National Tariff Commission of Pakistan (NTC) has imposed antidumping duties on the imports of Wall and Floor tiles originating in and/or exported from the Peoples
Republic of China. China Import clearance data of Wall/Floor tiles under PCT 69.08 for the period 18.02.2017 to 10.05.2017, has been obtained from PRAL. Mismatch of supplier name was found on 7 GDs as compared to beneTiciary name in EIFs. The antidumping duty was short levied and an amount of Rs.8.979 on account of anti-dumping is recoverable. It is surprised to note that 36 GDs pertaining to 25 importers were not subjected to anti-dumping duty de-
spite no restraining order was in Tield in these GDs. An amount of Rs.52.076 million is recoverable on account of anti-dumping duty. National Tariff commission had imposed anti-dumping duty on wall/Tloor tiles originating in or exported from China in the range of 5.21 percent to 59.18 percent. The shipments of tiles are routed from Dubai and the elements involved in the crime switched Bill of Lading declaring the name of supplier on which the anti-dumping duty is low-
est. The rate of anti dumping duty is 5.21 percent on M/s Huida Sanitary Ware Company Limited and 6.82 percent on M/s Foshan Hexichuangzhan Ceramics Company Limited. Most imports of tiles from China are being declared to be from these two suppliers. Interestingly, these two companies are not even aware that such large shipments are being made to Pakistan in their name. Actually these shipments are from Chinese companies on which the highest rate of anti-dumping duty is slapped.
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FBR allows withholding agents to revise statement KARACHI: Federal Board of Revenue (FBR) has allowed withholding agents to revise their monthly statements within 60 days of filing the original statement. Through Finance Bill 2017, a new sub-section has been inserted to Section 165 of Income Tax Ordinance, 2001 under which withholding agent who after filing of such statement discovers any omission or wrong statement shall be able to file revised statement within 60 days of filing of the original statement. At present the law does not allow a taxpayer / withholding agent to revise monthly withholding tax statement even if an omission or wrong statement is identified.
Bid to smuggle 1,176 bags of fertilizer into Afghanistan foiled
Tuesday May 30, 2017
National
‘Business friendly environment key to attract local, foreign direct investment’
KHYBER AGENCY
NADIr khAN
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n attempt to smuggle fertilizer into Afghanistan was aborted by the custom officials by recovering 1,176 bags of fertilizer weighed 58,800 kilogram from a trailer loaded with rice bags on Torkham border. Superintendent Torkham Customs Center Naeem Kham said on Friday that on a tip-off, a special team of the customs officials was constituted that strictly initiated the search process of all Afghanistan bound vehicles. During the checking, 1,176 bags of fertilizer were recovered from the trailer with registration No: KBL-63235. The contraband commodity concealed under the rice bags was being transported to Afghanistan.
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ASo confiscates generators, Mazda truck FAISALABAD
NAeeM SheIkh
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he Anti Smuggling Organization (ASO) has seized foreign origin imported generators. The market value of the seized generators is Rs40,00,000 involving customs duty and taxes worth Rs12,51,818. Sources told Customs Today, that Deputy Collector Usman Tariq received tip off about the lying of smuggled generator on an identified place transported from Lahore to Faisalabad. The party headed by Superintendent Dilawar Hussain intercepted Master Mazda mini truck bearing registration no: FSC-9648 and recovered the said used diesel generator having (275KVA). The team asked owner Muhammad Nadeem to produce legal documents of the items but he failed to do so. The Anti Smuggling Organization forwarded the case to the Customs Adjudication.
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LAHORE
SAJID NAwAZ
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he business friendly environment to attract local as well as foreign direct investment is necessary in order to exploit potential of manufacturing sector. Only business friendly environment can streamline economy and create jobs. This was stated by RTO-II Deputy Commissioner Husnain Ahmad Hali, Withholding Zone, while giving an exclusive interview to Customs Today. He said currently tax collecting agencies at Samanabad Town and Allama Iqbal Town and Excise and Taxation Department fall in his jurisdiction. He deals with withholding agents and gets tax amount collected by them. He also conducts audit of agents and in case of any discrepancy he also recovers evaded amount of taxes. Hali told Custom Today that 4,000 withholding agents belong to his jurisdiction and they are checked by him regularly. He stated that he collects taxes under Section 156 on prizes and winnings, 156A petroleum products, new vehicles and 234A Compressed Natural Gas (CNG) sector of the Income Tax Ordinance 2001. Talking about tax collection, he added that he collected Rs 1081 million from prizes and winning up to April 2017. About Rs 1021 million was collected in the same period of time in Financial Year
2015-16. He further said he has collected Rs 0.93 million from the vehicle won by Emporium Mall customer. He informed Customs Today that he collected Rs 892 million from petroleum products by April that is Rs 267 million more from previous year’s. He said he generated Rs 1791 million under New Vehicle Head as compared to Rs 1660 million in the last year. He also earned Rs 710 million under head of CNG up to April of Financial Year 2016-17. Ahmad Hali
he stated that he collects taxes under Section 156 on prizes and winnings, 156A petroleum products, new vehicles and 234A compressed Natural gas (cNg) sector of the Income tax ordinance 2001
NAB gave 79% success performance in Q1
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ISLAMABAD
cuStoMS BuLLetIN report
www.customsbulletin.com he National Accountability Bureau (NAB) prosecution division had an overall success ratio of 79 per cent in the first quarter of this year. This was revealed during a meeting to review the performance of the prosecution division for the Tirst quarter of the year from January to March 31. The meeting was chaired by NAB Chairman Qamar Zaman
Chaudhry at the NAB Headquarters, a statement said. During the brieTing, NAB Prosecutor General Accountability (PGA) Waqas Qadeer Dar said that the prosecution division has been revamped by inducting experienced and well educated legal consultants and special prosecutors. Dar said that on the directions of the chairman, a mechanism of handling of witnesses had been introduced and the result of the intervention was encouraging.
Giving a break-up of their performance, Dar said that the ratio of trails in accountability courts stood at 33.3 per cent during the quarter. Appeals in high courts and maintainability were 64.7 per cent. Writ petitions in high courts stood at 82.9 per cent, while decisions upheld in Supreme Court were at 46.8 per cent and appeals in Supreme Court were 100 per cent. The overall ratio success for the division during the quarter stood at 79 per cent.
performed his duties in the Regional Tax OfTice (RTO) Faisalabad and Multan, Corporate Regional Tax OfTice (CRTO) and now he is posted at Regional Tax OfTice-II Lahore. During his job at CRTO, he was declared “OfTicer of The Month” by Chief Commissioner on his extraordinary performance, he stressed. He added that the Regional Tax OfTice-II (RTO-II) taught the withholding agents as a result of which huge collection is received so far.
FIA arrests human trafficker
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he Federal Investigation Agency (FIA) arrested a suspect, Attaullah, allegedly involved in human trafficking during a raid at his residence. In another raid, a schoolteacher was arrested over withdrawing Rs 470,000 from a government’s school account illegally.
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PFA seals factory, recovers substandard soft drinks bottles Tuesday May 30, 2017
Business
RAWALPINDI: The Punjab Food Authority (PFA) has raided a factory making substandard soft drinks here and recovered huge quantity of fake and expired bottles. According to PFA Director Bilal Abro, a team raided the factory in Morgah, arrested six persons and recovered about 189,000 substandard and expired bottles of different brands.The bottles were planned to be distributed in different areas of Rawalpindi, Islamabad, Jhelum, Murree and notheren Punjab during the holy month of Ramazan, he added. Abro said the factory had been sealed and a case registered against the accused.
punjab govt sets up over 318 ramadan Bazaars LAHORE
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hief Minister Punjab Muhammad Shehbaz Sharif said that historic Ramadan package of over Rs 9 billion would be given to provide relief to the people during the holy month of Ramadan. For the provision of Tlour at low rates, a subsidy of Rs 8.78 billion will be given under which 10 kg bag of Tlour will be available at Rs 250 with subsidy of Rs 125 and 20 kg bag will be available at Rs 500 with subsidy of Rs 250. He said that more than 318 Ramadan Bazaars had been set up across the province while model
chawinda traders observe strike SIALKOT
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bazaars set up at various places will also work as Ramadan bazaars. He said that agriculture fair price shops had also been set up at all Ramadan bazaars where Rs 20 per kg subsidy had been given at gram pulse, gram
phMA rejects LeSco load-shedding notice to industry
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he local traders of Chawinda observed a peaceful strike against the heavy fines imposed by Assistant Commissioner Pasrur Zaheer Liaqat. They boycotted the Sasta Ramazan Bazaar and did not establish their retail stalls there on the appeal of Markazi Anjuman Tajraan. The protesting traders were carrying placards and chanted slogans against the local administration. The traders announced to continue their strike till the withdrawal of the heavy fines and cases lodged against them.
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Tlour (basin), dates, apples and bananas, while ghee, cooking oil, chicken, eggs and sugar will also be available at low prices than market. He said more than 2000 Madni Dastarkhawans had been set up all
over the province where free Iftaar and Sehar meals would be served. He directed the authorities to ensure that rates of all food items at Ramadan Bazaars and open market were displayed at prominent places and digital price boards should also be installed. The Chief Minister said that edible items of good quality should be available abundantly and beneTits of Ramadan package should reach the public at any cost. He said that foolproof security arrangements should be made at all Ramadan Bazaars while provincial ministers and secretaries would visit Ramadan Bazaars to check price and quality of foodstuff while the cabinet committee on price control would monitor prices of foodstuff on daily basis.
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LAHORE
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he Lahore Electric Supply Company, within 24 hours of the Tinance minister commitment of zero-load shedding for industrial units during his budget speech, has sent a notice to the industry for power supply suspension of around 10 hours during Ramazan. Pakistan Hosiery Manufacturers Association chairman Adil Butt has shown concern over the government’s move to observe al-
most 10-hour load shedding in industrial units during Ramzan despite Tinance minister promise of 24-hour power supply to the industry. Adil Butt said that notice served to the industry by LESCO, one-day after the budget speech, has warned the industrial units to close their operations from 6-30pm to 4am and in case of violations, the power supply would be disconnected for the whole month of Ramazan. Pakistan Hosiery Manufacturers Association chairman Adil Butt said Pakistan’s exports had continued to fall for a long time, and the govern-
ment proposed load shedding plan for Ramazan in industry would cause further decline in Pakistan’s exports as the exporters would not be able to meet the export deadlines on time. Terming it as another setback for the economy, PHMA chairman said that without power supply, production activities would come to a halt in industries, thus taking a toll on the national economy. He said that due to insufTicient power supply, industry was already operating far below its actual capacity, and long hours of load shedding during Ramazan would further dent its manufacturing activities.
Loadshedding in Sialkot to affect export badly SIALKOT
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ten-hour long daily loadshedding of electricity by the Gepco will affect the working and production of 9000 industrial units located on the premises of the Small Industrial Estate Sialkot and Small Industrial Estate Ghueinki-Daska and in its outskirts. Export of the country will also be affected due to power outage in the city. Domestic consumers are being facilitated with the exemption of loadshedding during Sehari and Iftari timings in the month of Ramazan. According to the SMEs, loadshedding has also halted the night shift of industrial production in the abovementioned units at Sialkot which will badly affect country’s exports. Meanwhile, the Sialkot Chamber of Commerce and Industry (SCCI), Surgical Instruments Manufacturers Association of Pakistan (SIMAP) and Pakistan Sports Goods Manufacturers, Exporters Association (PSGMEA) and Pakistan Gloves Manufacturers and Exporters Association (PGMEA) have expressed grave concern over the critical situation. They said this unavoidable and miserable situation is resulting into the termination of thousands of daily wage workers.
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reversal in global oil prices, falling exports widen trade deficit KARACHI
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reversal in global oil prices accompanied by falling exports the trade deTicit widened by 33.1 percent to US$ 17.8 billion in July-March FY2017, remittances and Coalition Support Fund inTlows both remained slower over the same period last year, however, the impact was offset by an improvement in the
income account, mainly due to lower proTit repatriations by oil and gas Tirms. Economic Survey 2016/2017 issued on Thursday said that the current account deTicit increased to US$ 6.1 billion in JulyMarch FY2017, against US$ 2.4 billion in July-March FY2016. As a percentage of GDP it stood at 2 percent compared to 0.9 percent of the comparing period last year. During July-March FY 2017 exports declined by 1.3 percent and stood at
US$ 16.1 billion as compared to US$ 16.3 billion in July-March FY2016. However Year on Year exports in March, 2017 increased by 1.4 percent. The imports increased by 14.0 percent in July –March FY2017 as compared to last year. Services trade deTicit fell by 1.9 percent during the Tirst nine months of FY2017. This year Pakistan has received inTlows amounting to US$ 550 million on account of CSF during July–March of FY2017 against US$ 937 million during last Tiscal year. Remit-
tances could not continue its upward growth trajectory during July-March FY2017 the remittances remained US$ 14.058 billion as compared to 14.388 billion during same period last year. Year on year basis remittances inTlow dropped marginally by only 1 percent, however, on month on month basis March-February about 20 percent of decent increase is recorded. The trend will continue in coming months and is expected that the target of US$ 20.2 billion for FY 2017 will
likely to be achieved. Net FDI inTlows rose 14.8 percent to US$ 1.6 billion in July- March FY2017, against US$ 1.4 billion same period last year. In October, FY2017 foreign currency reserves hit all time high at $ 24.03 billion, of which net reserves with SBP were $18.93 billion and scheduled banks $ 5.10 billion. However, with the current account deTicit widening and not being fully offset by Tinancial inTlows, the country’s total liquid FX reserves as on end-March FY2017.
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KARACHI wAQAr AhMeD ANSArI
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ustoms Collectorate Gwadar team has foiled an attempt to smuggle huge quantity of Iranian diesel and arrested the accused. Sources told Customs Today that Collector Gwadar Feroz Alam Junejo received credible information about smuggling of Iranian diesel. He immediately constituted a customs team under the supervision of Assistant Collector Kaleem Ullah. The customs team comprising Inspector Ghayor Safdar, Mumtaz Abbasi and Taulat Kan established check points on the entry and exit points of the city and started checking of vehicle. During checking, the customs team intercepted an oil tanker bearing registration no. TA-7829. The team asked the driver of the vehicle to produce legal documents regarding transportation of loaded oil but he failed to show any relevant documents. The customs team arrested the driver and registered a case of smuggling against him.
Tuesday, May 30, 2017
In another case, Some smugglers were reported to smuggle a huge quantity of narcotics in the jurisdiction of Ormara. Collector Fer-
oze Alam Junejo constituted an anti-smuggling team under the supervision of Inspector Shabbir Rasool. The team established a check post and started checking vehicles. The team intercepted a Suzuki van bearing registration no.SL-4532. During thorough checking, the anti-smuggling team recovered eight kilogram of charas which was hidden in secret parts of the vehicle. The anti smuggling team arrested the driver and his companion. The market value of the seized narcotics is Rs 1 million. Sources said that Cusi t toms Gwadar authorities n a he are using all available reking, t c e h c t gh gh sources to curb smugred ei thorou ecove r den gling attempts in the During m d a i e h t s g a lin hw c i region. Due to their h i t w smugg n a ras strict checking marle. the of cha c i m h a e r v ver the i kilog ginable decrease is bef r o d s e t par d th t e t e s r ing witnessed in smugc e e r e r lu a in s team ket va gling of Iranian oil. gling e mar
th smug illion nion. rs 1 m ompa c s i s i s c h i and narcot eized s e h t of
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Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDItorIAL
pakistan economic Survey 2016-17
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nveiled by Finance Minister Ishaq Dar, Pakistan Economic Survey for the year 2016-17 shows the government has missed some vital economic targets but growth has finally returned to the country after years of recession and the total volume of the gross domestic product has crossed $300 billion. The overall economic growth of the country has been recorded at 5.28 percent, which is the highest in nine years.The industrial sector growth has been recorded at 5.05 percent as compared to 5.8 percent last year and growth of overall manufacturing is registered at 5.27 percent as compared to 3.66 percent last year.The total investment in the country has reached Rs 5,026 billion as compared to the Rs 4,526 billion last year, showing a growth of 11.05 percent in one year. However, the country registered a minor growth in the foreign direct investment this year which stands at $1.733 billion as compared to $1.537 billion last year.Among the major investors, China has invested $ 744.4 million, Netherland $478.6 million, France $171million, Turkey $137.7 million, US $103.2 million, U.A.E $ 48.4 million, UK $47.6 million, Italy $47.4 million, Japan $42.1 million and Germany $ 40.5 million in Pakistan. The data shows that all the investment has come from top 20 economies of the world and the investment size is not more than a handful of peanuts. As compared to Pakistan, the size of annual investment in India is over $50 billion and this should be a point to ponder for the government policymakers. On the saving side, the government should encourage citizens to put their money in business rather than in saving schemes and waiting for years to get any benefit. It is good omen the people are already taking less interest in the saving schemes. The national savings remained 13.1 percent of the GDP during the outgoing fiscal year against 14.3 percent last year. The domestic savings have been recorded at 7.5 percent as compared to 8.2 percent of the GDP last year.It is heartening to note that the large scale manufacturing sector has recorded a growth rate of 4.93 percent as compared to 2.94 percent last year.The construction sector has shown satisfactory performance and has registered a growth of 9.05 percent against 14.6 percent growth last year.The agriculture sector, which accounts for 19.53 percent of the GDP, has recorded a growth of 3.46 percentagainst 0.27 percent growth last year.
Federal budget for 2017-18 F
LAHORE
Dr AFtAB AFZAL
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inance Minister Ishaq Dar has presented the federal budget for Tiscal year 201718 with total outlay of Rs4.75 trillion which is 4.3 percent higher than the last year’s budget.The availability of the Tinancial resources during the Tiscal year has been estimated at Rs 4.6 trillion and the net revenue receipts have been estimated at Rs 2.9 trillion.The Federal Board of Revenue has been tasked to collect Rs4.01 trillion tax revenue for the year.At least at Rs 2.3 trillion are estimated to come from the provinces under the head of federal taxes and the net capital receipts are as-
sessed at Rs552.5 billion.There will be slight increase in the total expenditures for the year and a major chunk of the budget will go to the education, defence, science and technology as well as power and nuclear energy projects.The development expenditures for the year are set at Rs1.001 trillion, which are 40 percent higher than the last year when Rs715billion were earmarked under this head.The defence allocations have been set at Rs920.2 billion. A huge amount of Rs 180 billion has been earmarked for the China Pakistan Economic corridor out of which 160 billion will be spent on the construction of roads and bridges. The government has already spent Rs 231 billion on the game changer project during the last
three years. At least Rs1 trillion are earmarked for agricultural loans for the year. The Tinance minister claims the budget covers all the aspects of the economy which is rising at a rate of over Tive percent and has crossed $300 billion mark. According to the budget estimates, the government is expected to receive Rs 837.8 billion from external resources and total availability of the resources is estimated at Rs 4,681.2 billion. At least Rs 2.1 trillion have been earmarked for the Public Sector Development Programme, including federal and provincial allocations, showing an increase of 26 percent as compared to the budget estimates of the previous year and 37.3 percent to the revised estimates of the same period. At least
Rs 40 billion are earmarked for special federal development programmes, Rs 12.5 billion for energy, Rs12.5 billion for potable water supply, Rs 7.5 billion for earthquake victims, Rs 45 billion for IDPs and Rs 45 billion for security enhancement in the country. At least Rs 50 billion will be spent on various educational programmes during the year. The annual presentation of the federal budget has become a routine affair in the country, but it is hoped the current government will fulTill its promises and will implement the budget in letter and spirit. The nation also hopes that there will be no mini-budget during the year and efforts will be made not only to document the economy, but also to simplify the tax procedure.
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Dubai Airport Freezone nets solid Q1 sales growth DUBAI: The Dubai Airport Freezone Authority (Dafza) said it performed exceptionally well in first quarter of 2017, achieving 62 per cent of its total annual sales target. This was accompanied by an increase of seven per cent in sales revenues over the same period in 2016. The freezone also posted a significant 31 per cent growth in the number of its registered companies, as compared to last year, noting a 16 per cent rise in the number of multinational businesses, such as Fujikura, Global Sources, Armasal, Blue Star and Markolin. The positive financial results showed a significant increase in the demand for office space, said the company in a statement. Among the number of registered companies at Dafza for the first quarter, 32 per cent belonged to the information and communications technology (ICT) and electronics sector thus topping the industry.
SccI appeals govt to abolish penalties imposed on export refinance Schemes SIALKOT
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ialkot Chamber of Commerce and Industry (SCCI) has urged the government to abolish the penalties imposed on Export Refinance Schemes pertaining to inability to achieve the targets. Talking to the newsmen here today, the SCCI President Majid Raza Bhutta expressed grave concern over the 30 percent decline in overall exports of Pakistan. He said that the government should facilitate the exporters by providing essential relief in terms of waving off penalties on the Export Refinance Schemes. SCCI President Majid Raza Bhutta added that due to the prevailing decline in national exports of Pakistan the exporters despite all efforts were unable to meet the projected export targets
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which would add in the woes and troubles of the Export Industry. He revealed that the export-oriented industry of Sialkot was striving to increase the exports but yet lacking essential facilitation and patronage by the government in such difficult times. Anticipating significant reliefs ahead of Federal Budget for the Financial Year 2017-18, SCCI President Majid Raza Bhutta urhed the Finance Minister Ishaq Dar to consider the proposal of elimination of fines on Export Re-Finance Schemes and that the waiver may be declared till the exports of Pakistan start showing a positive trend. SCCI President was of the view that such facilitation would not only provide the direly needed relief to the exporters but also motivate them to do more and go an extra mile to reverse the prevailing situation and play their role in enhancing Pakistan’s Economy by bringing stability and increasing exports in the coming months.
Tuesday May 30, 2017
Chambers
pak-german chamber, Sindh Law Dept sign Mou for positive social impact T
KARACHI
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he German Pakistan Chamber of Commerce and Industry (GPPCI) here on Wednesday inked a Memorandum of Understanding (MoU) with Sindh Law Department for positive social impact, an official of the German Consulate said. He stated the German Consul General Rainer Schmiedchen along with Sindh Law Minister Zia-UlHassan Lanjar and Secretary General GPCCI Ms. Ines Chabbi witnessed the signing ceremony. The MoU was signed by Chairman GPCCI Qazi Sajid Ali and Sindh Law Secretary Iftikhar Ali Shallwani. The purpose of this MoU is to establish the terms and conditions under which GPCCI and the Law Department will serve as a base to enhance awareness amongst the people in general and the less privileged groups in particular in the Province of Sindh. Project based actions will be taken to improve following areas: Promoting small domestic enterprises leading towards the prosperity of the people and elimina-
tion of child labour; Female capacity building in public and private sector; Diversity initiatives to include minorities and ethnic groups below poverty line; Knowledge, training, hand on experience through training sessions and edu-
cating groups, enabling them to learn from mutual best practices, local guidelines and requirements for improving the living conditions and well-being; Enhance awareness amongst the people by holding seminars and workshops with
‘Sri Lanka Investment conclave’ draws in 50 foreign firms COLOMBO
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enior Executives and owners of over 50 foreign companies from more than 15 countries have already registered to take part in the upcoming ‘Sri Lanka Investment and Business Conclave 2017’ showing interest in exploring opportunities in diverse economic sectors of the country, the Ceylon Chamber of Commerce said. The conclave organized by the Ceylon Chamber of Commerce will take place from the 30th May to 1st June 2017 at the Cinnamon Grand, Colombo. Large to medium scale Tirms from Japan, Spain, Switzerland, India, Pakistan, Singapore,
Qatar, South Korea, Thailand, Mongolia, Germany, China, Nigeria and Saudi Arabia along with Tirms from several other countries will be in Colombo to hold B2B meetings with local counterparts. Some of the Tirms that will feature at the upcoming conclave are, Advercast Corp of and Path Finder INC. of Japan, Asian Marine Services Public Company and Peerapat Technology Public Company Limited of Thailand, Marubeni India Private Limited of India, Food Services Company of Qatar, IBS Business Consulting Private Limited, Rajah & Tann Singapore LLP and Toyota Tsusho Asia PaciTic Pte. Limited of Singapore, OVD Kinegram AG of Switzerland, Waldschutz Energy EfTiciency GmBh and Wurth Elektronik EiSos GmBH Co. KG of Germany, Bio
Green International of Pakistan, China MCC20 Group Corp, Jiahong ( Shanghai) Import and Export Limited and China National Technical Import and Export Corporation of China, Modetex Ventures, Emscope Energy and LinkUp Event Managers Company from Nigeria, Saud and Company of Saudi Arabia, Viajes Dos S.L. and Viajes Jairan of Spain, and Young Jin Tech of South Korea. The business conclave is conducted in association with the Ministry of Development Strategies and International Trade, Ministry of Foreign Affairs, Ministry of Finance, Ministry of Trade and Commerce, Board of Investment of Sri Lanka, Department of Commerce, Sri Lanka Export Development Board, Sri Lanka Convention Bureau (SLCB) and the Department of Commerce.
regard to laws, rules and regulations; Enhance the scope of legislation with regard to the offences and punishments not provided in the existing laws; Consolidate and codify the existing laws, rules and regulations.
raids on business premises by FBr staff unacceptable: LccI he Lahore Chamber of Commerce and Industry has strongly protested against continues raids on business premises by the staff of the Federal Board of Revenue despite FBR chairman’s clear assurance that no such action would be taken against business community. In a statement issued here, LCCI President Abdul Basit, Senior Vice President Amjad Ali Jawa and Vice President Muhammad Nasir Hameed Khan said that exploitation of business community is not acceptable. Chairman Federal Board of Revenue should take notice of violation of his directions and stop officials from conducting raids otherwise business community would be left with no other option but to close down their businesses and take to the streets. –CB Report
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Retiring Torkham Transit Trade Dy Director Amin honoured TORKHAM: Pakistan Customs officials have bid farewell to Torkham Transit Trade Deputy Director Muhammad Amin, who is going to retire from the government services. The Custom officials also arranged an event to honour the retiring officer at Torkham Station. Customs Station Torkham Deputy Collector Fazli Shakoor also presented shield to Muhammad Amin to acknowledge his services on the farewell party.
Tuesday May 30, 2017
Islamabad Azhar erum assumes charge as Addl Director of Internal Audit-Ir
Salim raza given additional charge of Sahiwal rto’s project Director
ISLAMABAD
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zhar Erum Memon, a BS-19 officer of Inland Revenue Service, has assumed the charge as Additional Director, Directorate of Internal Audit-IR, Karachi. The officer, in pursuance of Board’s Notification No. 1356-IR-I/2017, dated 02.05.2017, relinquished the charge of the post of Additional Commissioner-IR, Large Taxpayers Unit-II, Karachi with effect from May 3, 2017 and took the charge of the post of Additional Director, Directorate of Internal Audit-IR, Karachi on the same date. Meanwhile, Bilal Hassan, an Inland Revenue Service officer of BS-18, has been given the charge of the post of Additional Director-IR, Directorate General of Intelligence & Investigation (IR), Faisalabad on OPS with immediate effect & until further orders. The officer is presently posted as Deputy Director, Directorate General of Intelligence & Investigation (IR), Faisalabad.
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Appraiser Zulfiqar Ali Shaikh gets extension he Federal government has decided to extend the tenure of Appraiser Zulfiqar Ali Shaikh. The competent authority has been pleased to extend suspension period of Zulfiqar Ali Shaikh, Appraiser (BS-16), MCC (Port Muhammad Bin Qasim), Karachi for a further period of three months w.e.f. 09.05.2017. Meanwhile, The competent authority has extended suspension period of Amir Ahmad Samoo, a Pakistan Customs Service officer of BS-16. The authority, in continuation of Board’s Notification No.0382-C-III/2017 dated 08.02.2017, extended suspension period of the officer, posted as Principal Appraiser at MCC Appraisement-West, Karachi for a further period of three months with effect from May, 2017. –CB Report
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alim Raza Asif, a BS-21 ofTicer of Inland Revenue Service, has been assigned the “additional charge” of the post of Project Director, Regional Tax OfTice, Sahiwal. The ofTicer, presently posted as Chief Commissioner-IR, Regional Tax OfTice, Multan, was given additional charge of the said post with immediate effect and until further orders. The Federal Board of Revenue had announced to establish new Regional Tax OfTice in Sahiwal from 1st July of the Tiscal year 2017-18. The FBR decided to bring important changes in the Regional Tax OfTice Multan jurisdiction by forming new Regional Tax OfTice in Sahiwal. It is important to mention that Sahiwal is one of the
main tax collection Zone of Regional Tax OfTice Multan and it will be separated from Regional Tax OfTice Multan after the end of the on-going Tiscal
year 2016-17.The present staff of the Sahiwal Zone will deputed along with new recruited ofTicers in Regional Tax OfTice Sahiwal The Federal Board of
Revenue has taken this initiative to broaden the tax revenue because Sahiwal Zone is crucial in the jurisdiction for the collection of taxes.
peshawar customs collects rs14921m taxes S
PESHAWAR
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howing shortfall in major collection, the Customs House in last 11 months of Tinancial year 2106-17 collected Rs14921 million till 25th May 2017 against previous 11 months of Rs16708.79 million with difference of minus 10.70 percent. Reliable sources in Customs House told Customs Today that in head of custom duty a total of Rs5598.48 million were collected up to May 2017 against the previous year collection of Rs6005.71 million of 2016 with total of difference of minus Rs407.23 million having difference in percentage of 0f minus 4.03 percent. In head of sale tax on imports the house collected Rs3610.34 million up to May 2017 against the previous collection of Rs3973.31 million with total difference of minus Rs362.97 million. The difference in percentage was recorded minus 9.15 percent. In head of sale tax levied as fed-
eral excise duty (FED) on palm oil the house collected Rs1463.14 million up to May 2017 against Rs1876.28 million of May 2016 with difference of minus Rs413.14
million having minus 22.02 percent in percentage. Similarly in head of sale tax value addition on commercial importers the house collected Rs5607.40 million up to
May 2017 against Rs558.62 million with deference of minus Rs24.70 million while the difference in percentage in this sector was recorded minus 4.42 percent.
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Real estate sector proposes cut in WHT for filers KARACHI: Real estate industry has urged the government to reduce withholding tax to one percent from the existing two percent on the purchase of immovable property by income tax return filer. In case of sale of property, the withholding tax rate should also be reduced to 0.5 percent from the existing one percent, it suggested. Pakistan Real Estate Investment Forum (PREIF) submitted its proposals for the upcoming budget 2017/18 to the National Assembly’s standing committee on finance and said the existing rates for non-filers should be kept intact. Shaban Elahi, president of PREIF, in a statement issued on Thursday, appealed the government for further facilitation of real estate sector by enabling businessfriendly environment so that the local and foreign investment could further be increased.
textile industry demands incentives against delayed issuance of rpos KARACHI
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extile industry, in its recommendations for budget 2017-18, has demanded compensation for delayed issuance of cheques against Refund Payment Orders (RPOs) along with refund payment. The textile industry said that after issuance of RPOs by the respective refund division in the Regional Tax Offices (RTOs) the refund cheques are issued by the FBR. Invariably, there is substantial time gap between the issuance of RPOs and refund cheques. No compensation is paid for delayed issuance of refund cheques. Similarly, FBR at times roll backs the RPOs without assigning any reason or passing a speaking order. Whereas a new phenomenon is rolling back of
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RPOs on the pretext of proper scrutiny. The CSTRO under the FBR established under the rule 27 of the Sales Tax Rules for centralized payment of refund amount should be abolished. Compensation for delayed issuance of cheque against RPO should be made, along with refund payment, in pursuance to section 67 of the sales tax Act 1990. Under the law, there is no concept of roll back of RPOs. It is suggested that it is formally incorporated in refund rules that refund cheque would be issued simultaneously with the RPO. The industry said that it is consistent policy of the FBR to delay the issuance of cheques after issuance of RPOs and for this centralization of issuance of cheques, is being used to hold refunds instead of streamlining the procedure and facilitating to the taxpayer. Therefore CSTRO should be abolished by amending the Refund Rules.
Karachi
Shc seeks comments from tax Dept on DFL corporation’s petition T
KARACHI
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he Sindh High Court (SHC) issued notices to the Tax Department and Deputy Attorney General of Pakistan and directed them to Tile their para-wise comments on a constitutional petition Tiled by the DFL Corporation Private Ltd seeking exemption from levy of Income Tax under clauses 103A 2 part I of Second Schedule of Ordinance-2001. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition. The court also adjourned the hearing for May, 2017. Earlier, counsel for the petitioner stated that his client is engaged in a lawful business of holding a parent company and coordinate the business and activities of the two other group entities name Dalda Foods Private Ltd and Oil Processors and ReTiners Private Ltd and fulTils all the liabilities properly, however ofTicials of the Tax Department issued a show cause notice dated 21/04/2017 for impugned demand in which petitioner is exempted from levy of Income Tax. The counsel argued that respon-
dents issued said show cause notice without a lawful authority. Citing to Secretary, Ministry of Law, Chairman Federal Board of Revenue, Additional Commissioner Inland Revenue Audit Range-I, Regional Tax OfTice RTO as respondents, the counsel pleaded with the court to kindly declare that the impugned show cause notice issued by respondents is arbitrary, illegal and mala Tide. He also pleaded with the court to set aside the impugned notice and restrain them from taking any coercive ac-
Tuesday May 30, 2017
tion against the petitioner till the Tinal order of this petition. Meanwhile, The Sindh High Court (SHC) has restrained the tax department from taking any coercive action against the petitioner and directed the Appellate Tribunal Inland Revenue Appeals-IV Karachi to decide the appeal of petitioner within four weeks. The court ordered this on a constitutional petition Tiled by M/s Altamash Institute of Dental Medicines, seeking disposal of its appeal over demand notice of Rs 220,334,805.
Sukkur customs seizes contraband items worth rs20m KARACHI
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ukkur Customs has seized large quantity of smuggled goods including Indian gutka and foreign origin cigarettes worth Rs20 million from a truck coming from Multan to Karachi. It may be mentioned here that this is the third seizure of smuggled goods by Sukkur Customs in a week. Chief Collector Enforcement Manzoor Memon has expedited efforts against the movement of smuggled goods ahead of holy month of Ramadan as influx of smuggled goods multiplies during this time of year. Manzoor Memon received information that unscrupulous elements had found new routes to transport smuggled goods given strict vigilance by customs authorities. Manzoor Memon tasked Collector Preventive Saifuddin Junejo, Collector Gwadar Ferozalam Junejo, Collector Quetta Saeed Jadoon, collector Hyderabad Akhlaq Khattak to expedite activities against smuggling and information network should be strengthened. Collector Hyderabad Akhlaq Khattak and Deputy Collector Mumtaz Ali are taking concrete measures and a crackdown is underway against this dirty business.
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customs intelligence lodges FIr against M/s Zubair Steel
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irectorate of Customs Intelligence & Investigation has lodged FIR against M/s Zubair Steel for evasion of government revenue on import of galvanized, electro galvanized and hot rolled, cold rolled steel sheets through mis-declaration of origin of goods. Information was received from Director General I&I Shaukat Ali in the Regional Office, Karachi that M/s Zubair Steel was involved in huge evasion of duty and taxes on import of steel
sheets of Korean and Mexican origin through submission of concocted House BLs and FTA Certificates to claim exemption of duty by showing origin of goods as China. The goods were actually supplied by Korean and Mexican suppliers and shipped directly from Korea and Mexico. However, in majority of Goods Declarations the port of shipment and origin is mis-declared as China on the basis of House BLs issued by Korean based freight forwarders. Director I&I Enforcement Samina Wajid formed a team headed by Deputy Director Tauseef Gor-
chani and comprising Superintendent Fakhar Ali Shah and others to pursue the case. In pursuance of the information, Customs I&I Karachi detected evasion of duty and taxes of Rs18.733 million on import of steel sheets from Korea and Mexico by M/s. Zubair Steel, which were cleared against benefit of Pak-China FTA through submission of concocted House BLs issued by Korean based freight forwarders showing shipment of goods from China. On retrieval of Master BLs from freight forwarders and shipping companies, shipments in re-
spect of 10 consignments were directly made from Korea while one consignment was shipped from Mexico. The benefit of FTA was claimed through mis-declaration of origin as China on the basis of fabricated FTA certificates. Out of 11 consignments, 10 were cleared from MCC, Port Muhammad Bin Qasim against 27 ex-bond GDs and one GD for home consumption while one consignment was cleared through MCC Appraisement (West), Karachi against six exbond GDs during the period November, 2014 to April 2017.
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Iran, Belarus ink customs deal Tuesday May 30, 2017
World
TEHRAN: Belarus and Iran have signed a set of documents on cooperation, including a protocol on exchanging preliminary information about goods moving between the two countries. The two will collaborate in the field of electronic exchange of information and preparation of electronic requests, IRNA news agency reported. After the signing ceremony, Chairman of the Belarusian State Customs Committee Yuri Senko told the media that the document will enable the two countries to reduce customs formalities. He noted that electronic exchange of information and electronic goods inspection requests help speed up the customs process. Senko added that the unification of tariffs for Iranian goods, as well as for CIS countries, is on the agenda.
Bc winery owners facing life in chinese prison for smuggling
russia’s Sberbank lends $1.9b to Veon’s subsidiary MOSCOW
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BC husband and wife are facing 10 years to life imprisonment in China for allegedly under-reporting the value of wine they export to that country. And the Canadian government is under Tire for not doing more to help them. Chinese customs ofTicials in Shanghai have charged John Chang, 62, and his wife Allison Lu with smuggling. Their trial is scheduled to begin May 26. Both have been under arrest since March 2016. Chang has been in jail since then. Lu was held until January, but was forced to surrender her passport and is barred from leaving China. Lawyers and politicians lining up behind the couple describe their detention as outrageous, excessive and a gross violation of personal liberty and security. They’re pushing the federal Liberal government to intervene im-
India reliance’s April oil imports fall 0.5% on month ndia’s Reliance Industries, owner of the world’s biggest refining complex, imported 0.5 percent less oil in April from the previous month, ship tracking data made available to Thomson Reuters showed. The imports were, however, 17.3 percent more than a year ago, when the private refiner had slowed purchases ahead an annual maintenance at one of its plants, the data showed. In the first four months of 2017, the private refiner shipped in 2.9 percent more oil from a year ago. Reliance received 33,800 bpd of Western Canada Select heavy blend in April in first such purchase of the grade by an Indian refiner, the data showed. The total may not tally as numbers in tonnes have been rounded off after converting them into barrels per day using a conversion factor of 7.2 barrels per tonne, divided by the number of days. –CB Report
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mediately, claiming Chang’s physical and mental health is deteriorating behind bars. Chang and Lu operate Lulu Island Winery. According to the company web site, it is the largest winery in Richmond, B.C., producing “table wines, fruit wines and…ice wines.” Before the couple’s arrest, the winery claimed its exports accounted “for al-
most 20 per cent of all Canadian wine exported to China.” Last July, Chinese state-run media showed boxes of Lulu Island wine being examined by customs ofTicials, and reported “a certain brand of ice wine in Canada” had been declared at around 10 Yuan a bottle (under $2 Cdn), when it was worth many times that amount.
Saudi Aramco plans up to $30 billion investment in Motiva by 2023
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audi Aramco [IPO-ARMO.SE] plans an investment of up to $30 billion in its U.S. subsidiary Motiva Enterprsies LLC [MOTIV.UL], the company said in an announcement at a business summit in Saudi Arabia. The company said that $12 billion would be the initial investment in a project to expand reTining capacity at Motiva’s Port Arthur, Texas, reTinery, already the largest in the United States, and to extend Mo-
tiva’s operations in the petrochemical value chain, according to a statement about the investment. A likely additional investment of $18 billion is expected in Motiva by 2023, it said. Since the completion of an expansion of the Port Arthur reTinery in 2012, which more than doubled its capacity to reTine crude oil to 603,000 barrels per day (bpd), Motiva has weighed plans for further expansion of the plant. –CB Report
ussia’s largest lender Sberbank has issued a Tive-year loan worth 110 billion roubles ($1.9 billion) to VimpelCom Holdings B.V., a subsidiary of Amsterdam-based mobile network operator Veon Ltd, they said on Monday. Veon, previously known as VimpelCom, said in a statement the loan would reTinance the existing loans provided by Sberbank to its Russian business and would provide additional funds for general corporate purposes. “The agreement to enter into a new term loan is an important further step in continuing Veon’s strategy to centralise debt at the holding level, thus improving the capital structure of the Group,” Andrew Davies, Veon’s Chief Financial OfTicer, said in the statement. Meanwhile, International rating
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agency Moody’s expects Russia’s GDP to grow annually by 1.5% in 2017 and 2018, the agency said in a press release. “Moody’s forecasts that real GDP growth will increase by 1.5% per year in 2017 and 2018, with private consumption and investment spending supported by gains in household real incomes and gradually easing monetary policy. Still, an ageing population is among the constraints expected to prevent Russia’s potential growth from expanding in the absence of fundamental structural reforms,” the press release said. Moody’s expects that the general government deTicit will narrow to 1.8% of GDP by 2018 from 3.7% of GDP in 2016, “driven mainly by a reduction of the deTicit at the federal level, while other budgets, including the regions, should be broadly balanced.” Earlier, Economic Development Minister Maxim Oreshkin said that the growth of Russian GDP in the second half of the year may exceed 2% in annual terns.
rice import restriction extended he Philippines is keeping the quantitative restriction on rice purchases in place for three more years, limiting supplies from major sellers like Thailand and Vietnam, according to an executive order released on Monday. The maximum volume of rice that private traders can ship in annually will remain at 805,200 tons until 2020, with the tariff also kept at 35%, the order signed by President Rodrigo R. Duterte on April 27 showed. The Philippines, one of the world’s top rice importers, is supposed to lift the import restriction by July 1 this year under an agreement with the
World Trade Organization (WTO). It was not immediately clear if Manila needs to seek another waiver from the trade body from its obligation to open up the domestic rice market. In 2014, Manila won WTO approval for a waiver but, as part of the agreement, it pledged to increase the annual import volume from 350,000 tons and reduce the rice tariff from 40%. Agriculture Secretary Emmanuel F. Piñol, who believes the Philippines could be self-sufTicient in rice production by 2020, had been pushing for a two-year extension of the restriction, saying local farmers are not ready to compete with cheap imports. –CB Report
Iran’s carpet exports surge to 350m uSD in past year
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early 350 million US dollars’ worth of Iranian hand-woven carpets were exported in the past Iranian year ending on March 20, up 27 percent year on year, the Financial Tribune daily reported on Wednesday. More than 84 million dol-
lars’ worth of carpets were exported to the United States, up from 2.7 million dollars the year before, according to Hamid Kargar, head of Iran’s National Carpet Center. Meanwhile, about 164 million dollars’ worth of carpets were exported from Iran’s East Azerbaijan Province in the past Iranian year, according to Nasser Avishan, the head of East Azarbaijan Industries, Mining and Trade Organiza-
tion’s Carpet Department. Export destinations included Germany, the United States, Saudi Arabia, the United Arab Emirates, Lebanon, Pakistan, Switzerland, Italy, Canada, England and South Africa, he said. “With the U.S. sanctions gone, we’re increasing our exports,” he was quoted as saying. In the same period, some 275,000 carpet weavers were directly involved in the industry in East Azerbaijan
which is the world’s hub of hand-woven carpets, Avishan said. To boost the industry, effective measures should be adopted in this province, he added. Iran’s carpet exports were hit hard by sanctions imposed on the country over its nuclear program over the past years, as the United States, the biggest importer of Iran’s carpets, banned the import of them, among other products, in September 2010.
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Japan April exports, imports slides higher TOKYO: Japan’s exports grew for a fifth consecutive month in April albeit at a slower pace than the previous month as imports continued to grow. The value of Japan’s exports rose 7.5 percent year on year in April, according to Japan’s Ministry of Finance, slowing from the 12 percent rise seen in March. The April figure was below economists’ estimates compiled by Bloomberg of 8 percent growth.Exports to Asia grew by 12.2 percent year on year with outbound shipments to South Korea jumping 22.3 percent and exports to China up 14.8 percent. Imports rose 15.1 percent year on year, coming in above estimates of a 14.8 percent rise. This was below the 15.8 percent jump seen in March.
New Zealand to resume meat exports to Iran ew Zealand is set to resume exports of lamb to Iran after a hiatus of almost two decades. A report by the country’s Stuff news website said that Wellington-based meat processing company Taylor Preston would ship 60 tons of frozen cuts to Iran on May 22 in what it said would mark the resumption of trade with the Islamic Republic. The report quoted Taylor Preston chief executive Simon Gatenby as saying that the company was looking to do more business with Iran. “The reason we’re doing this is to develop the trade, it’s a nice easy order to start with, it allows us to get a bit of volume into the market and allow it to be tested,” said Gatenby. Farmers supplying the late season lambs were being paid a premium of $6.10 per kilogram, added the report. Gatenby further added that the lamb would be sold for retail and domestic consumption. “We’ve sold the Iranians essentially a full carcass but we’ve broken it into six main primal cuts two legs, two loins and two shoulders,” he said. –CB Report
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Brazil police probe BNDeS loans to JBS razil federal police are investigating loans by development bank BNDES to JBS SA, a police source said on Friday, in the latest scandal encircling the world’s largest meat processor. Police had earlier said they would detain 37 people for questioning and conduct 20 search and seizure warrants as part of a probe into an unnamed meatpacker. Starting in June 2007, BNDES subsidiary BNDES Participações SA handed out loans to fund 8.1 billion reais ($2.6 billion) worth of acquisitions of other meatpacking companies, police said in a statement. Police suspect fraud in those transactions, which were approved after the meatpacking company hired a consultancy owned by an unnamed lawmaker, the statement said. –CB Report
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thai police intercept drugs consignment bound for hatyai
Tuesday May 30, 2017
philippines media says over 74,000 ‘live’ drug suspects caught so far he ongoing crackdown on the drugs trade in the Philippines has seen the arrests of 74,650 suspects so far, according to state media. The Philippine News Agency, a web-based newswire service of the government, also revealed in its Friday report that a total of 2,999 drug suspects have died in police operations, while 41 others died “on the side of law enforcement agencies”. The report said between July 1, 2016, after President Rodrigo Duterte came to power, and May 2017, local enforcers have conducted 58,751 anti-drug operations. It added that 158 police officers found to be drug users have been dismissed from service, while a further 168 other cases are still being investigated. Philippine National Police (PNP) deputy director-general Ramon Apolinario said the country’s drug menace remains a major concern and that accurate information concerning the drug war was crucial. ”As members of government, we make sure to provide accurate, not the rounding off, but exact and timely information to the members of the media and the populace. Even sometimes putting ourselves in the most inconvenient situations. “So far, we believe that government communications have done a good job in keeping the public informed of the true situation as far as illegal drugs,” Apolinario was quoted saying. –CB Report
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BANGKOK
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wo men driving a concrete mixer trailer stuffed with 2.2 million ‘Yaba’ (Crazy) Methamphetamine pills were apprehended last Saturday en route to Hatyai, southern Thailand, to deliver the illegal consignment. Both the men, who were arrested in Chumphon Province, refused to divulge any information on the drugs intended destination after reaching Hatyai, but Thai authori-
ties believe the drugs would eventually be smuggled across the border and end up in Malaysia. “The two suspects refused to tell us if the drugs were supposed to be smuggled into Malaysia after reaching Hatyai, but based on the trafTicking route, it was heading to Malaysia,” the police commander of Southern Region 8, Lt Gen Thesa Siriwatho, said to Bernama today. The two men, aged 48 and 32, he said, picked up the drugs from Fang District, Chiangmai, in northern Thailand and were promised payment of 500,000 Baht (about RM60,000) to deliver the consignment to unidentiTied men in Hatyai. The success came just days after
Thai authorities intercepted another lorry laden with 1.1 tonnes of ganja and 1.2 million ‘Yaba’ pills at Banmor district, Saraburi province, while it was heading to Hatyai, with the similar intention of smuggling the drugs into Malaysia later on. Four men, one of them a former policeman, were arrested in the sting operation, with Thai authorities saying the drugs would probably be re-exported to a third country from Malaysia. Meanwhile, Siriwatho said the concrete mixer trailer driven by the two men was stopped at a checkpoint in Chumphon and was escorted to a nearby petrol station for further inspection after the authorities sensed something amiss about the vehicle and its occupants.
turkish man arrested after fighter jets escort plane
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ighter jets escorted an American Airlines Tlight on its way to Honolulu after a disturbance aboard the aircraft. Initial reports suggested a man tried to break into the cockpit, but passengers on the Tlight said he was blocked by a Tlight attendant before entering the Tirst-class cabin. The man was subdued by the crew member and passengers, who duct-taped him to a seat in the back of the plane.
Federal law enforcement ofTicials detained the man after the plane landed at Honolulu International Airport at 11:35 a.m. local time. No injuries were reported. The man, 25-year-old Anil Uskanil of Turkey, was arrested on a charge of misdemeanor trespassing. Authorities said he had been drinking. “The Tlight attendants just were really heroic,” said Lee Lorenzen, a passenger on the Tlight. “By the time we landed and the FBI took him into custody, he was very mellow.” Other passengers said Uskanil looked “sluggish”
and “out of place.” Mark and Donna Basden said that before the plane took off, Uskanil took a laptop with him as he tried to sit in Tirst class. A Tlight attendant told him to return to the back of the plane. Laptops on Tlights have been in the news in recent days as U.S. and European ofTicials discussed potentially banning them in airplane cabins over worries that terrorists might use them to bring explosives aboard aircraft. A pair of Tighter jets was scrambled by U.S. PaciTic Command to escort the American Air-
lines plane while the nature of the threat was unknown. Homeland Security Secretary John Kelly was briefed on the incident, according to the department. The agency said Friday evening there were no other reports of disruptions aboard the aircraft and it will “continue to monitor all Tlights out of an abundance of caution.” American spokesman Ross Feinstein said the airline is in communication with federal law enforcement and directed further inquiries to the FBI.
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Customs Court adjourns hearing of artifice smuggling case Tuesday May 30, 2017
Lahore
LAHORE: Special Judge of Customs, Taxation and Anti-Smuggling Court Shakeel Ahmed has adjourned hearing of smuggling case Thailand origin statue still June 10, 2017. Sources told Customs Today that the court has summoned the witnesses in the case on the next date of hearing. The Customs Intelligence and Investigation team presented the charge-sheet against two accused persons namely Gulzar and Mohtsham Mendhi. According to the customs sources both the accused are involved in smuggling of Rs5 million unique artifices and status to Thailand. The Customs authorities registered FIR against the accused in 2013.
customs court remands two accused cloth smugglers to jail LAHORE
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pecial federal court of customs taxation and antismuggling has remanded two accused to jail on a judicial remand of 14 days. Two accused Rehmat Ali and Nasir Khan were apprehended by the customs intelligence. Customs intelligence had also recovered huge quantity of foreign made smuggled cloths and other goods from their possession. Customs intelligence told the court that accused persons were involved in smuggling of cloths from Afghanistan to Lahore and Faisalabad via different routes. They had caused a huge loss to the national kitty in the wake of taxes and
FBr crackdown against tax defaulters continues he Federal Board of Revenue (FBR) seems to be in action nowadays as its staff has conducted various operations against tax defaulters and detained a few of them while issued notices to contractors as well. Sources told Customs Today that the FBR has recovered Rs 275,000 from Naeem Jewelers, which was defaulter of income tax since 2013. On the other hand, the FBR has issued income tax notices to several contractors, construction companies and consultants as well. The FBR has issued notices to housing societies too in regard of income tax of the current year. Notices have been issued to Hamza Residencia, Star Residences, Sheranwala Heights Housing Scheme, Icon Valley Housing Society, Square Housing Society, Rehman Gardens, Bismillah Developers and Liberty Consulting. –CB Report
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duties. The total value of the impounded goods is Rs8.3million. Customs investigation team presented them before the customs court and asked for their physical remand to dig out the network behind this smuggling maTia. After the completion of physical remand again, they were produced before the court which remanded them to jail. Meanwhile, The Special Federal Court of Customs Taxation and Anti Smuggling handed over two accused persons to Customs Intelligence and Investigation team on physical remand for three days. Sources told Customs Today that two accused Rehmat Ali and Nasir Khan were arrested by the customs intelligence. Customs intelligence has recovered huge quantity of foreign made smuggled cloths and related goods from their possession.
customs preventive foils bid to smuggle NDp cigarettes LAHORE
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ustoms Preventive team deputed at Allama Iqbal International Airport have foiled bid to smuggle 6500 dandas of non duty paid cigarettes to USA, officials sources said. The sources said that the accused party under the disguise of garments attempted to illegally export local and foreigner made cigarettes worth Rs 1.3 million. The sources said that owners and representatives of M/s Lasani MSH and others booked garments for USA. The customs authorities, when examined recovered huge quantity of local and international cigarettes from garments. The customs authorities examined the garments in front of the representative of the company M/s Lasani. The name of the represen-
FBr seizes sale, purchase record of Stylo Shoes in mega tax scam
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ederal board of revenue conTiscated the sale and production record of Stylo Shoes, a famous ladies and child shoes making company in Pakistan. Customs Today has unearthed a new scandal of Stylo Shoes, a company that is earning millions of rupees every month, is not even registered with the FBR, sources said. Sources said the Stylo shoes private limited is a defaulter of hundred million of rupees as it is one of the leading shoe maker brands. On
Monday FBR team raided the Stylo Shoes ofTice, sealed all of the sales, purchase and manufacturing record. Computers, important registers, cheque books and other record have also been conTiscated by the FBR. A team of federal board of revenue, under the supervision of assistant commissioner Muhammad Umair Khan, took the action against the company. Inspector Aftab Basra and senior audit officer Javed Akbar Hashmi was also present during the raid. –CB Report
tative is Iftikahr who was arrested by the customs authorities after the fully satisTied that the cigarettes were to be smuggled illegally under the disguise of export of garments. The sources aid that the authorities recovered total 94 cartoons that contained 6500 dandas of Gold Leaf,
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Benson& Hedges and other local and foreign cigarettes. The customs authorities after registering a case have started investigations into the case. The sources said that the customs authorities registered the case under Customs Act 1969 under Section 156, 157, and 178.
customs gpo seizes 480g cocaine ustoms Preventive team deputed at General Post OfTice (GPO) successfully conTiscated 480 gram Tine quality cocaine from a parcel which was booked from Peru. Sources told Customs Today that Collector Customs Preventive Chaudhary ZulTiqar Ali received credible information about smuggling of narcotics through parcels. He directed Deputy Collector Customs GPO Palwasha Syed to take all necessary measures to foil these attempts. Deputy collector constituted a team comprising Superintendent Nayyer Sultan, Deputy
Superintendent Javed Iqbal, Shah Nawaz Langrial, Irfan Leghari and Inspector Ghulam Hussain to check all parcels which are being recieved foreign countries. During checking of these parcels the team noticed a suspicious parcel bearing no: 616/05/2017 which was booked from Peru. The parcel was Tilled with ready made garments and two Tlasks. When Customs team opened the bottles of Tlasks they found 480 grams of Tine quality heroin which was very tactfully hidden inside the bottles of Tlasks. –CB Report
cigarette smuggler handed over to customs investigations
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pecial court of customs taxation and anti-smuggling has approved a four-day physical remand of an accused in a cigarette smuggling case. Customs intelligence presented an accused Rameez Iftikhar before
the court of customs taxation and anti-smuggling judge. Customs investigation team asked for a remand of Tive days to grill the accused. On the request of customs team, Shakeel Ahmad, Judge of the Customs Court, handed him over to the investigation team for four days and directed them to present him again May for further action. Sources told Customs Today that ac-
cused Rameez Iftikhar was arrested on the charge of smuggling of cigarettes to America. He was attempting to smuggle 65 cartons of cigarettes to USA while declaring them as cloths. The value of the cartons is more than Rs1.3million. On the other hand, 21 other cases were also scheduled for hearing on Monday. Most of the cases
were adjourned without any proceedings as parties and lawyers concerned did not appear in the court. Framing of charges against Humayon Rasheed also adjourned for next week. Final arguments and statements of the parties concerned in a case of smuggling against RaTique Ali was also scheduled for hearing which is rescheduled for next week.
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Port markets at risk from GBER distortion WASHINGTON: British ports like Aberdeen are expected to be affected by the revised GBER regulations. Photo by Scotavia. Image courtesy of Aberdeen Harbour Board. British Ports Association (BPA) chief executive, Richard Ballantyne, has warned against the distortion of competitive port markets with major public subsidies. Commenting on the European Commission’s decision to formally adopted the revised General Block Exemption Regulations (GBER) on state aids, which include, for the first time, guidelines for ports, Mr Ballantyne said the revised GBER could do more to limit potential market distortion. He stated: “While we fully appreciate the diverse nature of the European ports industry.
king Abdullah port’s role as global logistics center highlighted ing Abdullah Port participated in and sponsored the sixth edition of Sea Asia 2017, held in Singapore as part of Singapore Maritime Week. Sea Asia 2017 was co-organized by Seatrade and the Singapore Maritime Foundation. This first participation of its kind for the Saudi port in the Asian market coincided with King Salman’s Asian tour, which resulted in several investment agreements. These agreements will contribute to supporting the Kingdom’s role internationally and enhancing its financial, economic and logistics status thanks to a strategic location that qualifies it to become a world-class logistics hub. The exhibition was inaugurated by Khaw Boon Wan, coordinating minister for infrastructure
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and Singapore’s minister for transport, who showed particular interest in King Abdullah Port’s booth. He lauded the scope of the project and the unique business model that has been used to make it a reality. Khaw said he follows developments in the Kingdom very closely and that he believes the Vision 2030 will have a major impact on the Saudi economy. Abdullah Hameedadin, managing director of the Ports Development Company, which is the owner and developer of King Abdullah Port, said that King Abdullah Port’s participation in and sponsorship of Sea Asia 2017 strengthens its presence on the international scene and boosts its standing on the world seaports map by informing the international community about its major role. –CB Report
Ports & Shipping
Tuesday May 30, 2017
ports riga was the leading Latvian Spanish face strikes again port in January-April S WASHINGTON
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n the Tirst four months of 2017, Latvian ports reloaded 24.528 mln tons of cargo, which was a 10.5% rise against the same period in 2016, according to information released by the Transport Ministry writes LETA. Bulk cargos, which dominated in Latvian ports in January-April this year, grew 27.4% y-oy to 13.382 mln tons. Handling of coal increased by 43.7% to 7.812 mln tons, chemical cargos fell 3.4% to 1.057 mln tons, and woodchip cargos rose 34.2% to 642,000 tons. Reloading of liquid cargos fell 9.6% y-o-y to 7.518 mln tons in the Tirst four months of 2017, with oil products making up the largest amount, or 7.247 mln tons, which was a 9.5 % drop from the Tirst four months in 2016, and crude oil handling declined 37.9 times to 12,800 tons. The turnover of general cargos grew 7.2% y-o-y to 3.629 mln tons in January-April 2017. These cargos in-
cluded 1.504 mln tons of container cargo, up 16%, 997,500 tons of timber, down 6.4%, and 973,100 tons of roll on/roll off cargo, up 9.1%. Riga was the leading Latvian port by cargo turnover in the Tirst four months of this year, having reloaded 12.225 mln tons of cargo, which was by 0.3% less than in the Tirst four months of 2016. The port of Ventspils followed with 9.445 mln tons of cargo reloaded in January-April 2017, up 25.1% y-o-y, and the port of Liepaja
was third with 2.285 mln tons of cargo, up 20.8% from January-April 2016. Among Latvia’s small ports, Skulte led with 289,900 tons of cargo reloaded in the four months of 2017, up 29.5 % y-o-y. Mersrags followed with 155,700 tons of cargo, down 5.8%, and Salacgriva came third with 101,800 tons, up 15.9 %. All Latvia’s small ports together reloaded 572,700 tons of cargo in the four months of 2017, which was 15% more than a year ago.
panish ports are set for eight days of strike action in the coming weeks after parliament’s lower house passed a reform to liberalise port labour practices, which currently contravene EU legislation. The vote narrowly passed with 174 MPs in favour compared to 165 against and eight abstentions as the nationalist Catalan party PDeCAT abstained. An earlier version of the reforms was voted down in March before the new version relaxed its stance on workers contracted to load and unload vehicles due for import and export. Unions are to strike from May 24 until June 9, during odd hours on each Monday, Wednesday and Friday, although it is claimed that they have already begun to slow down operations. Terje Samuelsen, chair of the dockers’ section of the ETF (European Transport Workers’ Federation), said: “This decision risks bringing into place a plan to aggressively and destructively liberalise port labour. It doesn’t even have the excuse of being in line with EU rules it goes recklessly beyond them. Unions are being forced into strike action.” –CB Report
texas set to raise truck weight limits at ports T
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exas legislators have given Tinal approval to a bill that shippers of synthetic resins and other heavy containerized commodities say would cut their transportation costs by allowing them to pack more cargo into containers moving through Port Houston. If Gov. Greg Abbott signs the bill as expected, the bill would take effect next Jan. 1. It would authorize permits for maximum truck weights of 93,000 pounds for truck-trailer combinations with six axles, or 100,000 pounds with seven axles, for containerized imports or exports moving on designated roads within 30 miles of the port. Truck weights have been debated in Texas for years, but the issue has drawn increased attention as petrochemical producers have invested more than
$100 billion in new Gulf Coast production to take advantage of cheap natural gas feedstocks that have turned the US into the world’s lowcost producer. Annual resin exports from the Gulf are forecast to rise by some 500,000 TEU during the next few years. Houston, which now handles about 45 percent of US seaborne resin exports, hopes to expand its volume and market share but faces stiff competition. Resin packagers have been working with Union PaciTic and BNSF railroads to develop intermodal routes using bulk-tocontainer packaging and transfer facilities in Dallas-Fort Worth. Charleston and other South Atlantic ports also are competing for intermodal resin exports, as is New Orleans on the Gulf. Supporters of the higher truck weights, led by petrochemical producers such as ExxonMobil Chemicals, say allowing heav-
ier shipments to and from Port Houston will encourage shipments through the port from local plants. Current weight limits at Houston are 80,000 pounds, or 84,000 pounds with permits. The increased limits will allow producers and packagers to load up to 27 tons in a 40-foot container, instead of the current 22 to 23 tons. Railroads, towns and cities around Port Houston, and labor organizations opposed the legislation but failed to halt the legislation or to cripple it with amendments. The Texas House of Representatives accepted the key provisions of a Senate-passed bill after nearly four hours of debate. The bill’s Tinal version sets a $6,000 annual fee for permits allowing heavier truck weights for containerized imports and exports on designated corridors within 30 miles of a port. Fifty percent of the money would go to the state high-
way funds, 30 percent to counties with the routes, 16 percent to municipalities, and 4 percent to the Texas Department of Transportation for administration. Meanwhile, For the third year running, the Port of Oakland on Friday launched the Tirst of a dozen free harbor tours, giving visitors rare, up-close views of one of the East Bay’s most iconic Tixtures. More than 200 people boarded a Blue & Gold Fleet ferry boat at Jack London Square as the sun began its golden-hued decline behind the hills of Marin. Berkeley resident Jason Strauss had seen an advertisement for the tour on a billboard, he said, and jumped at the chance to see the port up close. “The port is hidden in plain sight,” he explained. “It’s difTicult to travel anywhere in the East Bay without seeing it. But it’s also difTicult to see it up close.” He continued: “And, it’s a chance to see how the port works.”
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Peshawar ANF recovers 50 kg drugs from 12 persons PESHAWAR: Anti-Narcotics Force Peshawar arrested 12 persons and recovered more than 50 kilogram narcotics in 11 separate crackdowns.In the first crackdown, ANF Peshawar intercepted a suspected Suzuki Mehran car near Motorway Toll Plaza Peshawar and recovered 8.4 kg of hashish, which was concealed under the rear seats of the car. In another operation, ANF Peshawar, in collaboration with the ASF, arrested an accused Masood Khan, a resident of Khurram Agency, at the Peshawar International Airport.
Tuesday, May 30, 2017
CUSTOMS BULLETIN
Dg Valuation revises customs values of switches, sockets vide Vr No 1165/2017 KARACHI wAQAr AhMeD ANSArI www.customsbulletin.com
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he Directorate General of Customs Valuation has revised the customs values of switches and sockets vide Valuation Ruling No 1165/2017 under Section 25-A of the Customs Act, 1969. Customs values of switches and sockets were determined under Section 25-A of the Customs Act, 1969, vide Valuation Ruling No.993/2016, dated 14-12-2016. Some representations were received for revision of valuation ruling owing to difference in prices of some brands and origins, which were not included in the said valuation ruling. The valuation ruling also required revision in line with the prevailing prices in the international market. Therefore, this Directorate General, in light of orders of superior courts in Danish Jehangir and Saadia Jabbar cases, initiated an exercise for determination of customs values of switches and sockets. Meetings with stakeholders were held on 02-05-2017, 16-05-2017, and 17-05-2017. Importers had been requested to furnish invoices of imports during last three months showing factual value. Websites, names and e-mail
addresses of known foreign manufacturers of the item in question through which the actual current value can be
ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in
question. Copies of sales tax invoices issued during last four months showing the difference in price (excluding
duty and taxes) to substantiate that the beneTit of difference in price is passed on to the local buyers.
traders for FDI incentives, expansion of tax net KARACHI
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The representatives of industrial sector, chambers and trade associations of the country have asked the government to give greater emphasis on promotion of power generation avenues in the next budget 2017-18. OfTice-bearers and representatives of Pakistan Tanners Associa-
tion, Pakistan Apparel Forum, Pakistan Yarn Merchants Association, All Pakistan Marble Mining, Processing, Industry and Exporters Association, Surgical Instruments Manufacturing Association Pakistan, All Pakistan Business Forum, Karachi and Lahore chambers, carpet and sport goods in their respective budget proposals have already suggested Tinance managers of the government that liberal investment policy, infrastructure development, broadening of tax base and creating jobs through industrialisation. And more trade and business people urged govern-
ment to at least allocate 12 percent to 15 percent of the total budget allocated for hydro power projects. Reliance on costly thermal power has been jacking up the cost of production and the import bill as well. Tackling the energy shortages lies in maximum funds to be allocated for construction of dams or water reservoirs, tapping of Thar Coal and completion of Iran-Pakistan gas pipeline. They were of the view that country is in dire need of an urgent shift in its energy-mix in favour of hydro power and local
fuels. Agha Saiddain and Anjum Zafar from tanning sector, Ghulam Rabbani from yarn sector, Rana Abdul Sattar of cotton sector, Sanaullah Khan from onyx sector, Ibrahim Qureshi from business forum, Jawed Bilwani from apparel sector, Shakeel Ahmad from agriculture sector besides members of different trade bodies have urged the government to reduce sales tax to single digit and also cut corporate tax to make the upcoming budget business-friendly. The budget managers should announce measures to incentivise investors, broaden the tax net
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through documentation of economy, simplify tax system and reorganise the Federal Board of Revenue. Promoting foreign direct investment, increasing the share of direct taxes in revenue and lowering the slab of indirect taxes would help achieve key economic targets set for Tiscal year budget 2017-18. The sales tax slab should immediately be curtailed in order to reduce inTlationary pressures. Measures promoting foreign direct investment, increasing the share of direct taxes and slashing the slab of indirect levies should top the budget, they hoped.