Tuesday, 14 November 2017

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Karachi, Tue November 14, 2017

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akistan Customs Collectorate team foiled a bid to smuggle huge quantity of charas and arrested an accused identiTied who was later identiTied as Shah Muhammad, a residence of Saryab Road Queeta. A passenger bus was also taken into the custody.

According to details, Collector Customs Hyderabad Akhlaq Ahmad Khattak received credi-

ble information about some narcotics smuggling attempts. He immediately directed all anti smuggling squads to enhance their checking on main entry and exit pointsof the city.

During the snap checking of the vehicles a passenger bus coming from Quetta was signaled to stop for checking while during checking the customs staff led

by Inspector Aziz Ahmed Katper recovered huge packets containing contraband charas hidden beneath the driver’s seat.

According to Incharge Customs Check post Jac-

Vol 2, Issue No. 290

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cababd, Inspector Aziz Ahmed, they seized around 255 kilogram of Tine quality charas and the value of the contraband in the international market stands more than Rs 15 million.

It is necessary to mention here that Customs Collector Akhaq Ahmad Khattak directed all Tield staff to use all available resources to curb smuggling in the region. Sources told that due to strict measures adopted by Customs Collectorate there is marginable decrease is being witnessed in the smuggling attempts.

MCC Islamabad pays Rs21.87million of rebate refunds to exporters

DG Valuation revises customs value of tooth brushes vide VR No1218/2017

ASO seizes illegally imported milk, batteries from Sherakot

Pakistan turning into emerging economy: Ahsan

ASS Peshawar takes into possession NDP vehicle & goods

The MCC Islamabad paid Rs21.87m rebate refunds of Customs Duty | See pAge 02 |

DGValuationhasrevisedthecustomsvalueof ToothBrushesValuationRulingNo1218/2017 | See pAge 03 |

Customs ASO during a crackdown recovered 1000 bags of skimmed milk | See pAge 04 |

Ahsan that in 2013, Pakistan was declared weakest economy but after coming | See pAge 11 |

ASSoftheCustomsHousePeshawar,after receivingadirectionfromCollectorCustoms | See pAge 16 |

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FST directs FBR to rehear and decide complaints filed by FBR employees Tuesday, November 14, 2017

ISLAMABAD: A division bench of the Federal Service Tribunal comprising Members Ishtiaq Ahmed and Dr Nazir Saeed directed the Federal Board of Revenue (FBR) to rehear and decide cases of ‘implementation’ filed by the FBR employees, during first week of November.

The bench heard arguments on case of special allowance filed by Muhammad Boota and cases filed by M Waheed, Anjum Rasheed, Sardar Ali and Muhammad Ferozuddin.

Islamabad

Mcc islamabad pays rs21.87 million of rebate refunds to exporters

ISLAMABAD

ISLAMABAD

nAeeM uLLAH TAriQ

M fAiZAn

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he Islamabad High Court (IHC) heard a few tax matters, including those filed by M/S Al Catel Lusent Pakistan Limited, M/S Halmore Power Generation and M/S Pakistan Mobiles Communication Limited during first week of November. Justice Aamer Farooq and Justice Athar Minallah heard the cases. Both the benches dated in office the hearing of matters. A single bench of the IHC comprising of Justice Athar Minallah issued the notices. Earlier, the bench had asked the staffers to relist the matters for hearing. The bench would resume hearing on the matter by next week. M/S Pakistan Mobiles Communication Limited had filed the reference in which the company had challenged a show cause notice issued by the Large Taxpayers Unit, Islamabad. The appellant had challenged the act of recovery of said amount by Commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty.

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he Model Customs Collectorate Islamabad paid Rs21.87million of rebate refunds of Customs Duty to the exporters during the month of October of Financial Year 2017-18 against the assigned target of Rs20million of rebate refunds.

The Model Customs Collectorate (MCC) Islamabad showed an achievement of 109.34 % growth against the allocated rebate refund target for October FY17-18. The collectorate paid Rs5.00million’s rebate refunds during October FY1617. There has been a huge quantity of pending rebate claims since corresponding years. The Exports Rebate Claim Section has been unable to process 16,000 rebate claims till First Quarter of Financial Year 201718. Most of the cases have been pending for the last four years.

The sources of Exports Section told Customs Today that the Treasury Branch delayed the process of sanction-checks which made delay in the process to pay rebate claims to exporters working at the AFU Islamabad. The rebate refunds of the MCC Samberial and MCC Lahore cleared within 03 to 04 months the applied refund claims.

The sources told CT that there is a huge shortage of staff at the export rebate section which caused delay in

iHc postpones hearing of cases filed by three com in 1st week of nov

the process of rebate refunds.

Sources added that, during the month of August FY17-18, the Rebate Section sanctioned 363 of rebate claims of Rs30.00million while 16,792 cases of rebate claims are still pending with the amount of Rs656.58million from April to August FY17-18. During August FY1617, the Rebate Section Islamabad sanctioned 687 cases of rebate refunds worth Rs33.44million while

pending rebate claims worth Rs402.98million were 10,070 till said period. Meanwhile, The focal person of the National Highway and Motorway Police did not respond to the phone calls of the focal person of Pakistan Customs for interception of information based vehicles carrying huge quantities of smuggling goods.

According to details explained by sources that the Customs Anti-Smuggling Organization (ASO) Islamabad

received asome reliable information that a bus, bearing Registration No: 857 carrying huge quantity of smuggling goods, headed for Lahore via Motorway. As per Standard Operating Procedure (SOP), the customs authorities of the Model Customs Collectorate (MCC) Islamabad tried to contact Ashiq Chohan, Focal Person NH/MP, however the focal person did not respond to the phone calls of focal person of Pakistan Customs.

pak to ink fTAs with Thailand, Turkey, korea & indonesia soon

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ISLAMABAD

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he government is negotiating Free Trade Agreements with Thailand, Turkey, Korea and Indonesia which will be signed after conclusion of the negotiations. It is pertinent to mention here that Pakistan has not signed any Free Trade Agreement (FTA) with any country since June, 2013. According to details, the

cabinet accorded an approval to initiate negotiations on Pak-Thailand FTA (PATHFTA) in its meeting on August 24, 2015.

Eight rounds of negotiations have been held so far. Both sides have completed the text of the agreement, shared their respective initial request lists and tariff reduction modalities.

Efforts are being made to conclude Free Trade Agreement by end OF 2017. Pakistan is also in process of negotiating compre-

hensive Free Trade Agreement (FTA) with Turkey to remove barriers to its exports in Turkish market. This FTA will cover trade in goods, trade in services and chapter on Investment. So far seven rounds of negotiations have been held. Efforts are being made for an early conclusion of FTA. Pakistan and Korea both sides have concluded a feasibility to explore the possibility of a Free Trade Agreement between the two countries. The joint recom-

mendation prepared by both sides suggest on Free Trade Agreement between the two sides. Under the umbrella of Comprehensive Economic Partnership Agreement (CEPA), Indonesia and Pakistan agreed to initially sign a Preferential Trade Agreement (PTA). The PTA was signed on 3rd February, 2012 and was operationalized on 1st September, 2013.

During the first review meeting of Pakistan-Indonesia PTA in August, 2016, Pakistan side ex-

pressed concern over balance of trade being heavily skewed in favour of Indonesian side. During the last round held in August 2017, Indonesia agreed for following: to allow import of kinnow for entire season; to allow import of mangoes from Pakistan-the only country given such permission; to eliminate duty on two textile products from Pakistan; and, to consider positively reducing tariff on 20 products of Pakistan’s export interest.

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Only 70pc taxpayers file tax returns till now as IRIS system hits snags KARACHI: As taxpayers are visiting the offices of the Federal Board of Revenue (FBR) in a large number due to the shortage of time to file their tax returns, it jammed and halted the IRIS (Integrated Risk Information System) several times. Sources told Customs Today, that till now only 70 percent taxpayers have filed tax returns on time whereas 30 percent has to file the tax returns. Sources said that if the period of filing the tax returns is enhanced, the FBR will be able to collect more taxes. The sources have confirmed that the Karachi Tax Bar Association (KTBA) has already written the letter to the chairman of the FBR for extending the period for filing the tax returns.

Appraisement west receives rs70.17m as taxes & duties

Tuesday November 14, 2017

Karachi

Dg Valuation revises customs value of tooth brushes vide Vr no1218/2017

KARACHI

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he Customs Collectorate of Appraisement West has earned Rs70.17million of customs duty, sales tax, income tax and federal exercise duty during October. Sources told Customs Today that the Customs Appraisement West generated Rs18.98million as customs duty, Rs17.34million of sales tax, Rs15.21million as income tax and Rs18.64million of federal excise duty during the month of October Fiscal Year 2017-18. It is necessary to mention here that the Customs Collectorate of the Appraisement West received Rs54.98million of customs duty, sales tax, income tax and federal exercise duty during the first 27 days of October.

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Adjudication-i recovers rs3.26m from M/s Shabbir KARACHI

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he Customs Adjudication-I has recovered Rs 3.26 million from M/s Shabbir traders. The company was found involved in tax evasion. Sources told Customs Today that Collector Customs Adjudication-I Mohammad Javed has sent a show-cause notice to M/s Magna Enterprises for allegedly causing a loss of Rs 2 million by way of misdeclaration of classification. According to sources, M/s Magna Enterprises imported a consignment of steel scrap and used motorcycle parts and got them cleared by mis-declaring the classification under Pakistan Custom Tariff (PCT) from Pakistan International Container Terminal (PICT). They allegedly availed undue and inadmissible benefit as well as exemption of sales tax.

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KARACHI

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he Directorate General of Customs Valuation has revised the customs value of Tooth Brushes Valuation Ruling No 1218/2017 under Section 25A of the Customs Act, 1969.

According to details Customs values of tooth brushes (low end brands) were determined vide Valuation Ruling No.901/2016, dated 04-08-2016. The impugned valuation ruling required revision in line with the prevailing prices in the international market.

Therefore, this Directorate General initiated an exercise for determination of customs values for tooth brushes (low end brands).

Meeting with stakeholders was held on 08-09-2017 and the importers were also 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.

The importers, during the meeting, were of the view that the prices of the subject commodity have not increased in the international market.

They claimed that the market values of the impugned goods were equivalent to the values determined vide previous Valuation Ruling. The manufacturer present during the meeting contended that values determined already for tooth brushes in retail packing were not truly reTlecting international prices and also submitted

Meeting with stakeholders was held on 08-09-2017 and the importers were also requested to furnish invoices of imports during last three months showing factual value

pcA unearths evasion by M/s raheel Steel

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KARACHI

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he Directorate of Customs Post Clearance Audit (PCA) has detected an evasion of duties and taxes of Rs5.98million by M/s Raheel Steel, it is learnt.

The ofTicial sources told reporter that M/s Raheel Steel imported a consignment of different kinds of scrap under the PCT Heading 2401.7806 and got it cleared from the Port

Qasim Karachi vide GDs on June 16, 2017 by paying customs duty at 10 percent after claiming a beneTit of SRO 666/2007. However the subject scrap is correctly classiTiable under the PCT 2406.7458 attracting customs duty (CD) at 16.50 percent and income tax at 6 percent. Thus, by way of mis-declaration of classiTication, M/s Steel evaded/short-paid Rs5.98million. So the importer has violated the provisions of Section 36 (1) (2) & (3A) of the Customs Act1969, Section 7, 9 & 11 read with Sec-

tion 38 of the Sales Tax Act-1990 and Section 150 of Income Tax Ordinance 2001 punishable under clauses (6) and 18 of Section 156(1) of the Customs Act-1969, Section 36 (8) of the Sales Tax Act-1990 and Section 148 & 180 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of Sales Tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

documents, claiming that the values in international market, in certain cases, were higher than the determined values vide previous Valuation Ruling.

Meanwhile, She said that some valuations, which were issued in 2015 and 2016, were being reviewed from the beginning. Moreover, the valuations will be set in view of rising prices in the international markets. Sources told that a petition was submitted by the importers to Directorate General Customs Valuation.

SHc issues notice to customs for oct 3 Sindh High Court’s division bench has issued notice to Pakistan Customs for in a petition filed by All Pakistan Tiles Association. The notice was issued by the bench comprised of Justice Munib Akhtar and justice Omar Sial.

The association through law firm Franklin Law Associates challenged imposition of Regulatory Duty.

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FBR starts action against M/s Zamindara Paper & Board to recover evaded tax Tuesday November 14, 2017

Lahore

LAHORE: Federal Board of Revenue (FBR) started their proceedings to recover Rs7.4 million under the head of federal excise duty (FED) and penalty which was imposed on the company.

Sources told Customs Today that Federal Board of Revenue already sought all the relevant details from Department of Excise and Taxation Punjab. According to the sources FBR sought all the vehicles which are already owned by the above said company and the taxes paid by them. It is also necessary to mention here that there are five directors who are performing their duties in M/s Zamindara Paper and Board Mills. FBR already sought Computerized National Identity Cars (CNIC) from the above said company specially those vehicles which are owned and being used by its Director Fahim Ahmad Malik, Shamim Ahmad Malik, Shafqat Malik and Faria Malik.

Tax refunds appeal against rTo gujranwala put off till next date LAHORE

SAJiD nAwAZ

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n appeal of Muhammad Iqbal has been adjourned by next date. A refund case was Tiled before the Federal Tax Ombudsman (FTO) against the Regional Tax OfTice (RTO) Gujranwala.

FTO Advisor Mian Munawar Ghafoor heard the complaint in which counsel for appellant argued that the RTO Gujranwala has not released the refunds to the appellant since two years.

He said the RTO Sargodha has been collecting excessive tax from the appellant for the last two years. The company approached the ofTicer concerned many a time for the release of the refunds but the department did not bother to do something even after

Ac Zahra declares seizure of Honda civic as legal ollectorate of Customs Adjudication Additional Collector Zahra Haider has issued Order-in-Orginal 28/2017 by declaring seizure of Honda Civic car as legal. According to details, Anti Smuggling Organization team intercepted a Honda Civic car bearing registration no: LEB-514 near Model Town Lahore. The person available on the driving seat claimed the ownership of the vehicle identified himself as Syed Ashar Imam Zaidi son of Syed Mazhar Imam Zaidi. On demand the owner of the above said vehicle failed to show any legal documents regarding possession of the vehicle. Intially the said vehicle was detained under section 2(kk) of Customs Act, 1969 for want of import documents. During the course of investigation a notice was also issued to the said owner under section 26 of Customs Act, requiring therein documents pertaining to legal import of the said vehicle. –CB Report

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the passage of a reasonable time.

Finally, the appellant decided to move the Federal Tax Ombudsman (FTO) seeking intervention in this case. The counsel appealed the FTO Advisor to direct the commissioner of the RTO to clear the refund claims.

The counsel further said delay in release of refunds put the burden on the taxpayer adding that the RTO should audit the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for the RTO argued that the appellant has not submitted all record to the ofTice on basis of which it is claiming refunds. If appellant provides an accurate record, the RTO will release refunds, if any, after a proper assessment, he added. After hearing the arguments from both parties, Advisor of the FTO postponed the hearing and directed the parties to appear on the next date of hearing to present arguments in the case.

ASo seizes illegally imported milk, batteries from Sherakot

LAHORE

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ollectorate of Customs Preventive Anti Smuggling Organization (ASO) during a

crackdown recovered 1000 bags of skimmed milk. Total weight of seized skimmed milk is 25000 kilograms, while the market value of skimmed milk is Rs2 million.

Sources told Customs Today that Collector Customs Preventive Faiz Ahmad received credible information about some smuggling attempts.

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He immediately constituted a raiding team comprising Superintendent Nasir Minhas, Deputy Superintendent Agha Qadeer Haider, and Inspectors Azam Wattoo and Amjad Khan. The team established many check points on main entry and exit points of the city and started checking of vehicle. The team intercepted a Hino truck which was coming from Quetta. The driver of the vehicle who was later identiTied as Nabi Bukhsh to show legal documents regarding transportation and import of skimmed milk, but the driver of the vehicle failed to show any relevant legal documents. After his failure Customs ASO team seized the entire goods and registered a case of smuggling against the accused person according to customs laws.

It is necessary to mention here that after assuming the charge Collector Preventive Faiz Ahmad directed all anti smuggling squads to adopt zero tolerance policy towards smuggling.

customs books chinese national for customs Tribunal hears 12 cases smuggling $23,000 into Bangkok he Special Federal Court of 500,000. Saqlain deposited his

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customs vigilance team detained a foreign man at the Allama Iqbal International Airport, set to depart from the city and travel to Bangkok, for carrying an unusual amount of US dollars.

The detainee, a Chinese national in his late 30s, was in possession of US dollars of 23,000 and was travelling to Bangkok by a foreign airline.

The man has been taken into custody for questioning and a case subsequently was registered

against him, the officials added.

The Pakistan Customs foiled the attempt of currency smuggling on Thursday morning when Zhu Zhong was making an attempt of smuggling currency from Lahore into Bangkok.

The accused has been shifted to an unknown place for interrogation while a case has been registered against him. The Pakistan Customs has registered a case against the accused under the Pakistan Customs Act-1969. –CB Report

Customs Taxation and AntiSmuggling has adjourned the hearing of a case Tiled against an alleged tax evader for November whose post-arrest bail plea was approved. According to details available to Customs Today, the accused, Muhammad Saqlain, was involved in under invoicing in import of goods. The Customs Court had put his name in Exit Control List (ECL).

He was arrested while trying to flee from the country. Last month, the Customs Court approved his bail against surety bonds of Rs

bonds of Rs 500,000 and the court allowed him to go.

On other hand the Special Court of Customs Taxation and Anti-Smuggling on Wednesday heard 16 cases, including pre-arrest bail pleas Tiled by different suspects.

Most of the cases were adjourned without any proceedings as the parties and lawyers concerned did not appear in the court.

Hearing of pre-arrest bail pleas Tiled by accused Abdul Razzaq and Salman were adjourned for new dates in next week. –CB Report

fTo adjourns hearing of appeal filed by M/s Amber capacitor

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LAHORE

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ederal Tax Ombudsman (FTO) has adjourned hearing of appeal Tiled by M/s Amber Capacitor Private Limited till next date.

The refund case was Tiled before the Federal Tax Ombudsman (FTO) against Corporate Regional Tax Of-

Tice (CRTO) Lahore.

As per details, FTO Advisor Mian Munawar Ghafoor heard the complaint in which the counsel for the appellant argued that the CRTO has not released the refund to the appellant for the last two years.

He said that the CRTO collected excessive tax from the appellant during the last two years. The company approached the ofTicer con-

cerned many times for issuance of refunds but the department did not pay the refunds after the passage of a reasonable time.

Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO), seeking interference in this case. The counsel appealed the FTO advisor to direct the commissioner of CRTO to clear the refund claims.

The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer.

On the other hand, counsel for the CRTO argued that the appellant has not submitted all the record in the ofTice on the basis of which it is claiming refund.

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ISLAMABAD

TAriQ DerYA

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he North Region collected surplus revenue of Rs287.82million of all duties and taxes against the earmarked proportional revenue target from 1st to 10th of November of Financial Year 2017-18. The North showed 28.71% increase against the abovementioned proportional assigned revenue target.

According to details explained by the sources of the North Region which, comprising collectorates of Islamabad, Peshawar, Gilgit-Baltistan and Sialkot, earned Rs1276.90million as all duties and taxes against the allocated proportional revenue target of Rs992.08million during the Tirst 10 days of FY17-18. The North generated Rs927.83million under all the heads during the same period of corresponding FY16-17.

The North’s Customs Station, Collectorate of Islamabad, earned Rs109.92million extra revenue under all the heads during initial 10 days of November FY17-18 against the earmarked proportional revenue target. During said period, the Islamabad Customs received Rs483.68million of all taxes while it was assigned proportional revenue target of Rs373.86million during the same period of all taxes.

The sources said the Collectorate of Peshawar collected surplus revenue of Rs627.82million against the assigned proportional revenue target of Rs535.21million under all the heads. The Collectorate of Sam-

berial was earmarked Rs.-63.90million target for the Tirst 10 days of November FY17-18 while it paid Rs.-14.88million of rebate refunds under all the heads.

The Collectorate of Gilgit-Baltistan (GB) generated surplus revenue of Rs150.92million under all the heads during the Tirst 10 days of November FY17-18 against the allocated target of Rs146.90million.

Meanwhile, Tahira Sarwat Habib, Customs Chief Collector North Region, has contributed a lot to bring about customs administrative and automation reforms. The North Region earned surplus revenue of Rs1268.74million of all

duties and taxes during Tirst July to 25th of October Financial Year 2017-18 against the assigned revenue target for the Tirst four months of current Financial Year 2017-18.

Moreover, the North Region surpassed the allocated proportional target (1st July to 25 October) FY17-18 under all the heads with

ing mpris o c , h c i ar, ion wh eshaw g p e , r d a h b nort slama rned es of i ot, ea t k a l r a i o t S and collec n and duties altista l l B a t i s g a gil illion ted 6.90m alloc a e h t t rs127 s get of again ue tar taxes n e v e r l st 10 the fir r tiona g n i r u p ro p o llion d .08mi -18 rs992 f fY17 days o

Rs1905.26million.

According to details given by Chief Collector North Sarwat Tahira Habib while talking to Customs Todayduring an exclusive interview.

She added that the North Region showed satisfactory performance during said period.

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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

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chinese oer for joint ventures

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ccording to newspaper reports, a visiting Chinese delegation has expressed the desire to launch joint ventures with their Pakistani counter parts to manufacture auto parts and accessories in the country.

With increase in the per capita income of individuals and increased purchasing power, the burgeoning auto industry is already doing overtime to meet the growing demand for vehicles in the country. An eight-member Chinese delegation is reviewing the possibilities of joint ventures in the fields of automobiles accessories, town planning and vertical buildings infrastructure. Officials of the Pak-China Joint Chamber of Commerce and Industry briefed the delegation about the growing demand of energy-efficient automobiles, car accessories and vertical buildings in Pakistan. The automotive industry is one of the fastest growing industries of the country, accounting for 4 percent of the gross domestic product, and has engaged nearly two million skilled work force in it. With increase in the demand for automobiles, the demand for accessories has also increased. The Chinese businessmen also want ventures with Pakistan in the field of mechanical parts, electric motor parts and electronic items.

China has vibrant manufacturing industry which could be relocated to Pakistan if it is facilitated.

According to the delegation, Chinese business community sees vast opportunities in Pakistan and wants to invest in the auto sector where the quality and the price of vehicles will create an environment of competitiveness in the local market. If started today, the process of relocation of industries will complete in three years. Pakistan has already introduced a five-year automotive policy for 2016-2021 under which investors under A category will be allowed to import plant and machinery at concessional rates and duty-free. A residential locality ‘China Town’ in Lahore is also proposed which will hopefully attract more investment in real estate and construction sector of the country. The offer of investment from Chinese business community is a window of opportunity for Pakistan which must be kept open for the prosperity of the country.

Arrival of the Bank of china A

LAHORE

Dr AfTAB AfZAL

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ccording to newspaper reports, the Bank of China has formally begun its operations in Pakistan, which is seen as a step to further speed up the process of trade and economic cooperation between the two countries. Inaugurating the bank, President Mamnoon Hussain expressed the hope that the opening of the bank will not only improve national growth rate, but will also play an effective role in creation of conducive environment for the local and foreign investors. The opening of the bank is part of the China-Pakistan Economic Corri-

dor, which will also spur economic and business activities in the region. It is good omen that the corridor project has been going on in full swing despite opposition from the United States and India on flimsy reasons. Pakistan is the fifth most populated country of the world and it needs business, trade and food security for the coming generations. Until now Pakistan mostly remained under developed and needs to open up its borders with neighbouring countries to boost business and trade. The corridor project has opened up window of opportunities for all the countries in the region, including India, Afghanistan and Iran. Previ-

ously, India had always insisted that business relations should not be made hostage to political relations within the countries, but it reversed its policy on the issue of the economic corridor.

China has emerged as a major investor and business partner of Pakistan and trade between the two countries grew many folds in recent years. The opening of the bank is a positive development to materialise the possibilities of business and economic cooperation. The president eulogized the development of infrastructure sector in Pakistan and a favorable investment climate in the country.

The bank will not only help speed up trade and economic

cooperation under CPEC projects, but will also cater to the financing needs of the development projects by offering specialised services and expertise in Pakistan. The Bank of China is a good addition to the banking industry of Pakistan and will also help ease business transactions between the two countries for the benefits of business communities. The Bank of China enjoys a huge global presence and the banking sector of Pakistan will greatly benefit from the transfers of technology and innovative products and processes. It is hoped that the bank will boost a healthy competition the financial sector of Pakistan.

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Senate body seeks details of mobile tax revenue from FBR ISLAMABAD: The Senate Standing Committee on Information Technology has recommended tax exemption for cell phone users with only Rs500 or less account balance.

The committee met with Senator Shahi Syed in the chair on Monday and directed the Federal Board of Revenue to submit details of the revenue generated through taxes imposed on the users of cellular services.

The members of the committee were informed that there were around 135 million cell phone users in the country.

The meeting also discussed the payment of pensions to the retired employees of the Pakistan Telecommunication Company Limited.

Appellate Tribunal chairman hears various cases during 1st week of nov

Tuesday November 14, 2017

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court adjourns hearing of case filed against accused involved in mis-declaration

ISLAMABAD

nAeeM uLLAH TAriQ www.customsbulletin.com

ustoms Appellate Tribunal Chairman Justice (r) Manzoor Hussain visited the tribunal’s headquarters in Islamabad during first week of November and headed cases hearings in single and division benches besides performing administrative tasks. While hearing the cases, the chairman reserved decisions on customs references filed by M/S Waseem Autos and M/S Nisar Traders. The chairman visited the tribunal’s office on October 31. Chairman of the tribunal headed cases hearings during his visit in division and single benches besides performing administrative affairs at the tribunal. M/S Waseem Autos and M/S Nisar Traders had filed cases against MCC, Islamabad. The chairman also heard cases involving Model Collectorate of Customs and Directorate General of Investigation and Intelligence, Islamabad. These cases were filed

by M/S Parts & Parts, M/S Chief Autos,

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ISLAMABAD

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he Special Federal Court of Customs Taxation and AntiSmuggling has adjourned the hearing of a case filed against an alleged tax evader for November 6 whose post-arrest bail plea was approved. According to details available to Customs Today, the accused, Muhammad Saqlain, was involved in under invoicing in import of goods. The Customs Court had put his name in Exit Control List (ECL).

He was arrested while trying to flee from the country. Last month, the Customs Court approved his bail against surety bonds of Rs 500,000. Saqlain deposited his bonds of Rs 500,000 and the court allowed him to go. On other hand the Special Court of Customs Taxation and Anti-Smuggling on Wednesday heard 16 cases, including pre-arrest bail pleas filed by different suspects.

Most of the cases were adjourned without any proceedings as the parties and lawyers concerned did not appear in the court.

Hearing of pre-arrest bail pleas filed by accused Abdul Razzaq and Salman were adjourned for new dates in next week. A case against

Shaukat Ali was also scheduled for hearing in which court recorded statements of the parties.

Final arguments and statements

of the concerned parties in a case of smuggling against Rafique Ali also scheduled for hearing which is rescheduled for next week.

govt asked to resolve causes of tax gap M/S Aman Elahi, M/S Kohinoor Traders, M/S Saleem Silk Centre, M/S Five Star Trading, M/S Pakistan Royal Group and M/S Nayatel Private Limited, M/S Degicell & others, M/S Kohinoor Chemical, Mirza Muhammad Majid, M/S Fazal Razaq, M/S Fazal Ur Rehman and Gul Rehman & others. The appellants had filed cases against Directorate General of Investigation and Intelligence, Islamabad and Model Collectorate of Customs, Islamabad. M/S Degicell & others had M/S Kohinoor Chemical filed cases against Model Collectorate of Customs, Islamabad. Among the cases Mirza Muhammad Majid, M/S Fazal Razaq, M/S Fazal Ur Rehman and Gul Rehman & others had made Directorate General of Investigation and Intelligence, Islamabad respondent in the cases.

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ormer Federal Board of Revenue (FBR) chairman Abdullah has suggested to the Tinance committee of the National Assembly that the government should resolve the causes of tax gap by taking administrative measures. He said that CNIC should be used to expend the tax net and comprehensive tax policies should be launched in the country. The 61st meeting of the Standing Committee on Finance, Revenue and Economic Affairs of the National Assembly was held in Parliament House under its chairman Qaiser A Sheikh.

The committee discussed “Eradication of Riba Bill, 2015” (moved

by Sher Akbar Khan, MNA) and directed the Ministry of Finance to

provide details regarding the measures taken by the government for eradicating interest from the banking sector.

The committee was informed by the Additional Secretary Ministry of Finance that Ministry of Finance has already convened a meeting to discuss “The Islamabad Capital Territory Prohibition of Private Money Lending Bill, 2017” (moved by Sajid Nawaz, MNA) with Ministry of Interior and Ministry of Commerce.

The committee directed to Ministry of Finance to invite the over when next internal meeting of the Ministry of Finance would be held in this regard. Additional Secretary Ministry of Finance assured that honorable mover would be invited as per the directions of the Committee. While considering “The Controller General of Accounts (Appointments, Functions and Powers)

(Amendment) Bill, 2017” (moved by Asad Umar, MNA).

Additional Secretary Ministry of Finance informed the Committee that same Bill was already under consideration by the Standing Committee on Finance of the Senate and the said Committee of the Senate has recommended that all concerned departments will complete their work till January, 2018. The Committee decided that Ministry will also present the outcome of the Senate Committee in this Committee as well. The Committee discussed “The State Bank of Pakistan Banking Services Corporation (Amendment) Bill, 2017” and directed the State Bank of Pakistan to provide a comprehensive brief and powerpoint presentation on the subject matter in its next meeting. The Committee considered “The Establishment of Federal Bank of Cooperatives and

Regulation of Cooperative Banking (Repeal) Bill, 2017” and recommended that the Bill may be passed by the National Assembly as reported by the Committee.

The committee considered “House Building Finance Corporation (Repeal) Bill, 2017”. The committee unanimously recommended that the “House Building Finance Corporation (Repeal) Bill, 2017” may be passed by the National Assembly as reported by the Committee. Saeed Ahmed Qureshi former Secretary Commerce was present in the meeting as financial expert. He suggested that this forum should be highlighted the main areas of economy, where the problems were being faced to the country. He further suggested that government should provide one window operation in all segments of life.

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Waqas Aslam takes charge as Addl Commissioner-IR at Lahore LTU Tuesday November 14, 2017

National Asif Abbas assumes charge as collector (opS) at Lahore customs (Appeals)

ISLAMABAD: Waqas Aslam, a BS-19 officer of Inland Revenue Service, has taken charge as Additional Commissioner-IR. The officer, in pursuance of Board’s Notification No. 2883-IR-I/2017, dated 16.10.2017, relinquished the charge of the post of Additional Director, Directorate General of Training & Research (Inland Revenue), Lahore with effect from October 23 and assumed the charge of the post of Additional Commissioner-IR, Large Taxpayers Unit, Lahore on the same date.

Muti-ur-rehman relinquishes charge as Secretary (ir-op)

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sif Abbas, a Pakistan Customs Service officer of BS-19, has assumed charge as Collector (OPS). The officer, in pursuance of Board’s Notification No.2876-CI/2017, dated 12.10.2017, relinquished the charge of the post of Additional Collector (BS-19), Model Customs Collectorate, Sialkot with effect from October 18 and took charge of the post of Collector (OPS/BS-19), Collectorate of Customs (Appeals), Lahore on October 23. Meanwhile, Modassar Ahmad Tirmizi, a Pakistan Customs Service officer of BS-18, has assumed charge as Deputy Director in the Directorate of Training & Research (Customs), Lahore. The remaining 72-day medical leave on full pay with effect from October 9 to December 19 granted to the officer vide Board’s Notification No. 2621-C-II/2017 dated 20.09.2017 has been cancelled.

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four customs officers of BS 17-18 transferred ederal Board of Revenue (FBR) has transferred and posted four Pakistan Customs Service officers of BS 17-18 with immediate effect and under further orders. Shahid Jan (BS-18) has been transferred and posted as Deputy Director, Directorate of Intelligence & Investigation,FBR, Rawalpindi from the post of Deputy Collector, Model Customs Collectorate, Islamabad. Saad Ata Rabbani (BS-18) has been trnasferred and posted as Deputy Director, Directorate of Intelligence & Investigation,FBR, Karachi from the post of Deputy Collector, Model Customs Collectorate of Exports, Custom House, Karachi. Ms Mahwish Shah (BS18) has been trnasferred and posted as Deputy Director, Directorate of Post Clearance Audit. –CB Report

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uhammad Muti-ur-Rehman Mumtaz, a BS-19 ofTicer of Inland Revenue Service, has relinquished charge as Secretary (IR-Operations)/ special assistant to Member (IR-Operations).

The ofTicer, in pursuance of Board’s NotiTication No. 2883-IRI/2017, dated 16.10.2017, relinquished the charge of the post of Secretary (IR-Operations)/SA to Member (IR-Operations), Federal Board of Revenue (HQ), Islamabad with effect from October 27.

Meanwhile, Haider Abbas, a BS17 ofTicer of Inland Revenue Service, has assumed charge as Assistant Commissioner-IR. The officer, in pursuance of

Board’s Notification No. 2883-IRI/2017, dated 16.10.2017, relinquished the charge of the post of

Second Secretary FBR (HQ), Islamabad with effect from October 17 and took the charge of the post of

Assistant Commissioner-IR, Regional Tax Office, Rawalpindi on the same date.

Adjudication-ii serves 16 show cause notices, 10 final notices on tax defaulter co T

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he Custom Adjudication-II has been very active in the month of October. Source said the custom adjudication sent more than 16 show cause notices and around 10 Tinal notices to tax defaulter companies for recovery of dues. The Customs Adjudication-II has served a Tinal notice on a defaulter named M/s Shakeel Fertilizers Karachi and recovered Rs3.88million from M/s Humaira Garments and Export.

M/s Shakeel Fertilizers Karachi was found involved in the tax evasion. The company imported different kinds of fertilizers, chemicals and Dana on August 27, 2017 and used the wrong PCT. After a careful investigation, the Customs Adjudication-II issued a Tinal notice to the company and

cleared the outstanding amount of Rs3.50million. Sources told reporter that another company M/s Humaira Garments and Export got cleared a consignment of different kinds of

silk suits on June 13 and evaded tax amount of Rs3.88million. After an investigation, Customs Adjudication served a show cause notice on the company on August 27, but the

company failed to clear the outstanding tax amount. Collector Customs Adjudication-II Muhammad Javed issued a Tinal notice to the company on September 9.

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Customs Appellate Tribunal hears references filed against Customs Collectorates ISLAMABAD: Customs Appellate Tribunal dated in office hearing on customs references filed

by M/s Klaguardia Logistics and M/s Trade Master after hearing arguments from Model Collectroate of Customs, Islamabad.

Customs Appellate Tribunal’s bench comprising Members Tribunal, Syed Muhammad Anwar and Muhammad Nasir Khan heard the matters submitted by M/s Klaguardia Logistics and M/s Trade Master against Model Collectroate of Customs, Islamabad.

Counsels from M/S Five Star Trading had appeared before the bench and demanded time from the bench for finalizing preparations for the case.

return filers increase 72pc, refunds by 100 pc ISLAMABAD

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he tax returns received by the Federal Board of Revenue (FBR) witnessed as substantial growth of 72 percent by reaching to 608,587 during four months of the current fiscal year till November 1st, against the same period of last year.

The categorically dispelled the impression created by some reports appearing in sections of the press that the number of the returns received for the tax year 2017 has declined as compared to returns received for tax year 2016. “The impression that only 352,022 returns were received upto November 1, 2016 is misleading as the board has received 608,587 returns till the date,” FBR spokesperson said. Mean-

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while, the board had issued to the tune of Rs. 42 billion as against Rs. 21 billion issued during the same period of last year, showing increase of 100pc, FBR sources said. In addition to issuance of these refunds, another amount of approximately Rs. 13 billion had been issued as sales tax refund to refund claimants through direct credit to their bank accounts, they added. The gross revenue collection has increased to Rs. 1074 billion during the first four months of the current fiscal year, showing an increase of 20.4 per cent over the corresponding period of last year. “The Federal Board of Revenue has continued to display satisfactory performance in the fourth consecutive month of the current financial year and achieved provisional gross revenue collection of over Rs. 1074 billion,” said FBR statement issued here Wednesday.

National

Accountability court issues detailed verdict over discarding Dar’s plea

eco countries’ customs admin heads’ 8th meeting on 14th KARACHI

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he 8th meeting of the heads of the customs administrations of the Economic Cooperation Organization (ECO) countries will be held in Pakistan on November 14, 2017. The 4th meeting of the Subcommittee of the ECO Customs Experts (SCOEs) will be held on 13th of November 2017 here to further enhance customs cooperation in the region. Sources told Customs Today on Monday that the Federal Board of Revenue (FBR), in coordination and consultation with the ECO Secretariat, has decided to organize the 8th meeting of the Council of the Heads of the Customs Administration on April 13-14 at Islamabad. The 4rd meeting of the subcommittee of the customs experts is planned to be convened on the sidelines of the 8th CHCA meeting. The meeting will be attended by Kunio Mikuriya, Secretary General of the World Customs Organization (WCO), which will also be participated by the ECO and WCO with the mutual understanding to finalize a draft to sign an agreement of cooperation among the country members of the ECO and WCO.

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n accountability court here on Saturday issued its detailed ruling on the plea Tiled by Finance Minister Ishaq Dar who pleaded the court for continuation of graft reference trial in his absence on medical grounds.

Accountability Court Judge Mohammad Bashir released the judgment in writing, which he read in the last hearing on Nov 8 while rejecting Dar’s request.

The minister is accused of possessing assets which are disproportionate to his known sources of income in a reference Tiled by the National Accountability Bureau (NAB) in compliance with the Supreme Court orders.

Dar through his counsel Khawaja Harris had submitted a plea to seek an exemption from personal appearance before the court on the medical grounds, pleading the judge to continue the trial in the graft reference amid presence of his representative ZaTir Khan Tareen.

A medical report was also submitted in the court. However, NAB prosecutor Imran Shafeeq contended that

Tuesday November 14, 2017

the Tinance minister was deliberately skipping the proceedings and making the lame excuses. The prosecutor then asked the court to issue ‘nonbailable’ arrest warrant for Dar. Judge Muhammad Bashir after hearing arguments of both sides, rejected both pleas Tiled by the respondent and prosecution while directing Dar’s counsel to ensure Dar’s presence by next hearing on Nov 14 (Tuesday), besides submission of bail bond worth Rs2 million. The judge had also

directed the investigation ofTicer to conTirm the authenticity of the medical report. In light of the medical report, the court was informed that Dar, who is in London, was suffering from cardiovascular disease and the doctors have advised him not to travel. The judge then ordered Dar’s bail guarantor to ensure the minister’s presence in the next hearing, while issuing a warning that a surety bond of Rs5 million would be conTiscated in case of a no-show.

iHc relists customs reference filed by Dg customs i&i

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division bench of the Islamabad High Court (IHC) relisted a customs reference Tiled by Directorate General of Intelligence and Investigation, Islamabad. The bench would hear the case along with other similar cases in coming days. Earlier, a division bench of the IHC comprising Justice Athar Minallah and Justice Mohsin Akhtar Kayani directed the staff to relist the case. The FBR Tield ofTice had Tiled the customs case against M/s Smart Zone (Private) Limited and others.

Directorate General of Intelli-

gence and Investigation had challenged announcement made by Customs Appellate Tribunal before the court through the said cases.

Meanwhile, Justice Aamer Farooq on Tuesday issued fresh notices to parties regarding assisting court on the matter of M/s Hasas Engineering and Construction Company Private Limited. The bench then dated in ofTice hearing on the matter.

The appellant had challenged the act of recovery of said amount by Commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad.

ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding is-

suance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty.

M/s Hasas Engineering and Construc-

tion Company Private Limited had prayed the court that FBR ofTice had issued a recovery notice to the company which did not hold lawful grounds.

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World Customs

BOJ can’t exit stimulus when inflation below 1%

TOKYO: The Bank of Japan likely won’t be able to exit its massive stimulus programme while inflation is hovering below 1 percent, Takatoshi Ito, an academic who is a potential candidate to become the next BOJ governor, said on Wednesday.

“What’s important is for inflation to accelerate, which would give (the BOJ) quite some flexibility in guiding monetary policy,” Ito, a Columbia University professor, told a seminar in Tokyo.

Tuesday November 14, 2017

chinese customs reveals cases of uS bound ip infringements

russia’s fM to purchase foreign exchange worth $2.1b MOSCOW

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hina’s customs agency has found more than 1,500 cases of IP-infringing goods exported to the US, according to a statement. They were reportedly uncovered during two IP crackdowns launched by the two countries earlier this year.

The General Administration of Customs said it would “actively promote increased cooperation with customs administrations of all countries and regions to jointly Tight and comprehensively manage” IP rights.

The release was made as US President Donald Trump visits China as part of a tour of Asia. According to reports, Trump said in a speech yesterday, November 9, that trade between China and the US has not been very fair for “many years”, adding that there was a trade deTicit

iran’s non-oil export continues to fall ran’s non-oil trade turnover increased by 6.2 percent to $52.527 billion during the first seven months of the current fiscal year (started March 20, 2017), meanwhile the country experienced a negative trade balance of $3.1 billion. Iran’s non-oil exports, including gas condensate, reached $24.71 billion during the 7month period. The figure indicates a fall by 2.17 percent, compared to the same period of the preceding year, Iran’s Customs Administration reported Oct. 31. Iran includes gas condensate and some raw hydrocarbon products, like propane, butane, etc. in its non-oil export basket. The volume of the exported goods had reached 68.058 million tons in the 7-month period. During the period, the country exported $4.115 billion worth of condensates. –CB Report

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of $300 billion a year.

However, he went on to blame previous US administrations, not China, for this disparity. In August, Trump asked US Trade Representative Robert Lighthizer to launch an investigation into whether China’s trade practices on tech transfer, IP and innovation are unreasonable or discriminatory. On initiating the probe shortly after,

Lighthizer said a thorough investigation was needed. China’s customs deals with large numbers of IP cases every year. In 2016, ofTicers took on more than 19,500 IP rights protection actions and detained 17,400 batches of infringing goods, including around 42 million items.

As WIPR reported for the INTA Daily News 2017, the authorities are under increasing pressure.

Dutch online discount broker Degiro sees revenues drop 2% in Q3

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msterdam based pan-European online broker DEGIRO B.V. has released some of its Tinancial and operating statistics for the third quarter and Tirst nine months of 2017, indicating slowing growth at the company including its Tirst “down” quarter.

The broker, which was founded in 2013, has made waves across Europe and in particular in the UK where its deep-discounted fees of

just £1.75 per trade (+0.004%) for UK listed equities and $0.50 for US listed shares (+ $0.004 per share), as well as the introduction of commission-free ETFs, have initiated something of a price war among other UK online equity brokers. And the company’s growth has been strong, as it has continued to expand each year into more EU markets. DEGIRO’s Tirst nine months 2017 Revenues of €28.8 million. –CB Report

ussia’s Finance Ministry will purchase foreign exchange in the amount of 122.8 bln rubles ($2.1 bln) of extra oil revenues in the period between November and December 6, 2017, the ministry said. Extra oil revenues are expected to reach 125.8 bln rubles in October. “The total amount of funds allocated on foreign exchange purchases on the domestic forex market equals 122.8 bln rubles in the period between November 8 and December 6, 2017. Accordingly, daily purchases of foreign exchange will total 5.8 bln rubles ($99 mln) in equivalent,” the report said.

In October 2017, the deviation of oil and gas revenues from the monthly estimate made in September was minus 3 bln rubles ($51

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mln), the ministry said. The Central Bank purchases foreign exchange at the Moscow Stock Exchange evenly during the trading day at the request of the Finance Ministry, after which the currency is transferred to the accounts of the Federal Treasury in the Bank of Russia. As reported earlier, the Federal Treasury may begin foreign exchange purchases for current expenditures of the Finance Ministry’s budget using additional revenues from oil exports starting January 2018. Head of the Treasury Roman Artyukhin said earlier that the mechanism assumes that the Treasury independently and directly enters the Moscow Stock Exchange for currency purchases. At the moment, the Treasury is preparing a roadmap for developing an algorithm for currency purchases directly on the exchange.

Meanwhile, Russian oil output edged up to 10.93 million barrels per day (bpd) in October from a yearly low of 10.91 million bpd in September and August.

BoT selects Simcorp Dimension

imCorp, a leading provider of investment management solutions and services to the global financial services industry, announced today that The Bank of Thailand, Thailand’s central bank, has selected SimCorp Dimension as its new investment management platform to support the reserve management and monetary policy operations of its USD 226 billion reserves. Leveraging SimCorp Dimension’s integrated IBOR (Investment Book of Record), the Bank of Thailand will use the system to manage its end-to-end business processes across all asset classes.

The system will in particular be used to support financial risk management, performance and attribution, compliance, collateral management, settlement and accounting. With the implementation of SimCorp Dimension, the Bank of Thailand positions itself at the forefront of the emerging ‘whole office’ by eliminating artificial boundaries across the organization and creating a more productive and informed environment to support key decision making. Thailand is one of the most advanced emerging markets economies in the region. –CB Report

SA records 3.5 bln rand budget deficit in September

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JOHANNESBURG

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outh Africa recorded a budget deTicit of nearly than 3.5 billion rand ($249 million) in September, the sixth month of the 2017/18 Tiscal year, compared with a shortfall of about 4 billion rand in the year-ago period, treasury data

showed. The table below shows revenue and expenditure for August, compared with the previous Tinancial year. These are also expressed as a percentage of the 2016/17 budget target and the preliminary outcome for 2017/18.

Meanwhile, A Consortium of international business leaders was investing $1 billion in the South African and larger African economies, the

lead investor ambassador Harold Doley jr announced yesterday. Doley made the unexpected announcement at the Business Report Ignite breakfast yesterday morning. The event in Cape Town followed Finance Minister Malusi Gigaba’s MidTerm Budget Policy Statement delivered in Parliament on Wednesday.

The $1bn (about R14bn) investment will primarily be in technology, as a

platform for diverse development, and education and agri-business.

Africa has the most arable land in the world and has more people under 35 than any other continent.

Addressing Gigaba, Doley said: “I am going to tell you something you will seldom hear: We want to come here and pay taxes; we want to make money so we can help you with your deTicit.”

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Cosco Ports Q3 volume up 17% WASHINGTON: Cosco Shipping Ports saw third quarter throughput rise 16.6% to 23.10m TEU from 19.81m TEU in the previous corresponding period. “Driven by the growth of international trade and the supports from shipping alliances and shipping fleets of parent company, the Group’s total throughput recorded satisfactory growth,” said a company statement. For the nine months ended 30 September 2017, the Group’s total container throughput rose 13.5% to 64,885,641 TEU (corresponding period of 2016: 57,165,661 TEU). For the three months ended 30 September 2017, the Group’s subsidiaries handled 18.9% (3Q2016: 19.6%) of the Group’s total throughput with a total of 4,355,405 TEU (3Q2016: 3,878,102 TEU), up 12.3%.

ports of indiana YTD shipments up 10% he Ports of Indiana, the statewide port authority that operates three ports on the Ohio River and Lake Michigan, said that its shipments during the first nine months of this calendar year were up over 10 percent compared to the first three quarters of 2016. Total tons handled reached over 8.1 million, the second highest volume during the first nine months of any year in the organization’s 56-year history, the port authority said. Ports of Indiana attributed the growth at its three marine ports – Mount Vernon, Burns Harbor and Jeffersonville – primarily to increased shipments of coal, steel, fertilizer and ethanol. At the Port of Indiana-Mount Vernon, volumes for the first nine months of 2017 rose to over 4.5 million tons, a 15 percent increase from 2016 figures and the second highest ever at the port for that

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time period, according to the port authority. The authority also stated that the port is on track for a third consecutive year exceeding 6 million tons of total cargo throughput. Coal and ethanol shipments were up 31 and 34 percent, respectively, compared to last year, shipments of salt rose 54 percent, fertilizer was up 49 percent and minerals jumped 32 percent.

Data shows that the Port of IndianaBurns Harbor handled 2 million tons of freight this January through September, which was not only its secondhighest total ever for that nine-month time period, but also the second highest September in the port’s history. The port authority said that overall shipments for the first three quarters of 2017 rose nearly 11 percent at Burns Harbor, as steel cargoes were up nearly 49 percent. –CB Report

Ports & Shipping

American ports raise security staffing concern WASHINGTON

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he American Association of Port Authorities (AAPA) has raised questions over a Customs and Border Control (CBP) staffing shortage during the nomination of Kevin McAleenan as CBP Commissioner. AAPA provided the questions to the Senate Finance Committee for it to discuss during its hearing on October , 2017 to nominate McAleenan.

McAleenan told the Committee that CBP is working to integrate greater maritime resources into its staffing models and noted CBP had made “sustained innovation” in moving containers.

AAPA said US ports had concerns over shortages of border and customs staff needed, for example, for examining cargo for radiation.

CBP staffing shortages may potentially impact the security and economic welfare of US ports. The questions form part of a legal

record ahead of Port of Long Beach Executive Director Mario Cordero and Port of Los Angeles Executive Director Gene Seroka testifying with CBP before the committee on October 30, 2017. Kurt Nagle, President and CEO of AAPA, said in the August, 2017 letter to McAleenan: “In FY 2015, CBP was funded to hire 2,000 staff, and fewer than 20 officers, or one percent, were assigned to seaports. “This disproportionate approach to security and CBP staffing at maritime ports cannot continue. “The nation’s ports handled roughly 1.3 billion

metric tons of foreign trade cargo in 2016, and more than 11 million maritime containers and over 11 million international passengers each year. “Annual increases in volume and periodic surges in ship traffic have continually led to repeated dock-side delays in inspecting and clearing cargo. “Ports continue to struggle with balancing a CBP staffing shortfall against security threats and business demands.

“The port industry recognizes the internal difficulties that CBP faces to bring on new CBP staff and assign them to maritime operations.

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coSco Shipping ports revenues boosted by 8% hinese ports operator COSCO Shipping Ports has revealed ‘satisfactory growth’ on the back of greater profits at Qingdao for the nine months and quarter ended in September, 2017.

Cosco Shipping Ports’ total container throughput for the nine months grew 13.5% to around 64 million TEU over the same period in 2016. Driven by the growth of international trade and the support of shipping alliances and shipping fleets of its parent company, COSCO Group, the Cosco Shipping Ports’ total throughput recorded satisfactory growth, it said. Revenue for Cosco Shipping Ports increased by 8.0% to US$155 million in the nine months, year-onyear. Profits from associates surged 92.0% or around $44 million in the nine month period thanks to profit from Qingdao Port International (QPI) Company. Cosco Shipping Ports has a strategic Investment in QPI, a terminal operator at the world’s 8th busiest port in Qingdao, China. During the period, the Group completed the disposal of equity interests in Qingdao Qianwan Container Terminal Company. –CB Report

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Scotland’s ports gear up for oil shortage WASHINGTON

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t the Port of Dundee on the east coast of Scotland, two signs of the North Sea’s past and future stand side by side. A few hundred metres from where an oil drilling rig is moored, with its crew awaiting their next job, a new quayside for vessels and equipment used to decommission North Sea oil and gas Tields is under construction. The 200m-long jetty, which is also intended to attract more offshore wind work, is part of a £10m expansion project to make sure the historic port is prepared for when the sun Tinally sets on North Sea oil.

It is estimated that up to 20bn barrels of oil and gas could still be recovered from beneath the waters off the coast of Britain. But several historic harbours in Scotland, which

rely on oil and gas trafTic for a sizeable proportion of their revenues, are already looking at how to “future proof” their businesses.

North of Dundee, the managers of Aberdeen Harbour which was established in 1136 and typically relies on oil and gas for 50 to 60 per cent of its business are pushing ahead with a £350m expansion project to secure new business, both from decommissioning and from other sectors, such as cruise ships.

These historic ports are used to seeing major industries come and go.

“Back in 1995 when Forth Ports bought the port [in Dundee] it was still handling jute,” says Charles Hammond, chief executive of the private company that owns the Port of Dundee, in a reference to the city’s once-thriving jute mills that ultimately fell victim to cheaper competition from India. North Sea oil and gas work is currently one of

the biggest contributors to the Port of Dundee’s revenues, along with agricultural products, such as fertilisers, and other cargo, including timber, steel and iron. “I would expect to see with investment . . . decommissioning and offshore wind will be two of largest areas of business with agriculture and general cargo,” says Mr Hammond.

The port estimates that 326 North Sea oil and gas Tields will be “sub economic” or unproTitable by 2030 and will need to be retired. It is also optimistic about the UK government’s continued subsidy support for offshore wind farms, many of which are located or planned for sites off the east coast. Meanwhile, Aberdeen’s expansion will allow it to accommodate larger vessels, whether commercial cargo boats or barges used for decommissioning. It is also hoping to attract much larger cruise ships, capable of carrying as

many as 3,000 passengers. “We are responding to almost a 30-year trend in vessels getting larger,” says Chris Bain, a director at Aberdeen Harbour Board, which manages the port. The retirement of oil and gas Tields is already taking place in the North Sea, but decommissioning is still regarded as an “emerging” sector. It accounted for just 5 per cent of total spend by the North Sea oil and gas industry in 2015, according to Oil & Gas UK, a trade body. There are various forecasts of the total cleanup bill for the North Sea, which will be subsidised in part by the taxpayer.

The Oil and Gas Authority, a regulator, recently put the estimated cost at £60bn. “Decommissioning is not that sexy, it’s a logistics and waste management project,” admits Callum Falconer, chief executive of a Dundeecom, a public-private partnership promoting decommissioning in the city.

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Meeting reviews 260 development schemes of ADP 2017-18 BAHAWALPUR: A meeting was held to review progress of development schemes of Annual Development Programme (ADP) 2017-18 at Commissioner Office here.

Commissioner Bahawalpur Division Capt (retd) Saqib Zafar presided over the meeting. The meeting reviewed the progress of 213 ongoing schemes and 47 new schemes. The meeting was further briefed that amount of Rs 9.11 billion has been released for ongoing schemes while Rs 2.9 billion have been issued to the concerned departments for new schemes.

Tuesday November 14, 2017

Business

‘pakistan turning into emerging economy’ LAHORE

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ederal Interior Minister Ahsan Iqbal said that in 2013, Pakistan was declared weakest economy but after coming into power, the PML-N government turned it into fast emerging economy in the world in last four years.

He was addressing the 1st International Youth Summit organized here by University of Lahore. Ahsan Iqbal said the country’s economy had collapsed in year 2013 when no one was ready to invest in Pakistan, but now it was making progress.

He hoped that if it continued to progress at the current pace, the

pnSc to launch service between karachi, gwadar KARACHI

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country would be among the world’s twenty largest economies by 2025. All economic indicators were showing positive improvements, he added.

Consistency in economic policies

ogDcL, ppL consortium being formed to launch Shale gas, oil pilot projects

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he Pakistan National Shipping Corporation (PNSC) is set to launch a coastal service between Karachi and Gwadar and Karachi and Port Qasim. The decision to this effect was taken at a recent meeting chaired by Federal Minister for Ports and Shipping Mir Hasal Khan Bazinjo. According to the sources, the minister has directed PNSC Chairman Arif Elahi to take steps to implement the plan without further delay.

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was indispensable for the progress of the country, he said while predicting that Asia would be contributing 52 percent in the world GDP by 2050. He elaborated that Asia, South Asia, Central Asian states

and China were engines of economic growth, and Pakistan was situated at the crossroad of these engines of growth. In this context, he said, Pakistan would have to get optimum beneTit of its geographical location for which political stability and peace were of immense importance.

Ahsan Iqbal was of the view that this age was of innovation and disruption where changes took place frequently, and “we need to develop ourselves as per requirements of the world because the nature of today’s challenges is global and challenges have no boundaries.”

The federal minister said leaders were those who had clear vision and sense of purpose and goal. The leaders were good communicators and their constant liaison with people was very important.

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consortium of state-owned companies, Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL), is being formed to undertake pilot project(s) to assess the cost of extracting Shale gas and oil after identiTication of their massive reserves in potential areas.

“The pilot projects are likely to be executed in selected areas of Balochistan, Sindh and Khyer

Pakhtunkhwa, “ofTicial sources told APP. In 2015, a study completed in cooperation with the USAID had conTirmed presence of 10,159 trillion cubic feet (TCF) Shale gas and 2,323 billion of stock tank barrels (BSTB) Shale oil in place resources.

According to the study, there are 188TCF gas and 58 BSTB oil technically recoverable resources, while the risked technically recoverable resources stand at 95TCF gas and 14 BSTB oil.

The study covered lower and middle Indus Basin, which geographically spread over Sindh,

southern parts of Punjab and eastern parts of Balochistan. Total area under the study was 271,700km, which is 33 percent of the total sedimentary area of the country.

During the study, a detailed analysis of 124 wells was carried out, including laboratory analysis on Shale cores and cuttings in the United States. Objectives of the study were to validate Shale gas resource estimate, initial Tindings, assess availability of required technology and infrastructure for Shale gas operations and formulate guidelines for the Shale gas policy.

Sc seeks reply on removal of Dr Asim’s name from ecL ISLAMABAD

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he Supreme Court (SC) on sought a reply from the National Accountability Bureau (NAB), pertaining to the removal of PPP leader Dr Asim Hussain’s name from the Exit Control List (ECL). A Division Bench of the apex court, comprising Justice Mushir Alam and Justice Qazi Faez Isa heard the case, filed by Dr Asim Hussain regarding removal of his name from the ECL. During the course of proceedings, Dr Asim’s counsel Sardar Latif Khosa, while presenting arguments for the removal of his client’s name from the ECL, argued that Dr Asim’s medical treatment is under process. “My client was scheduled to leave Pakistan on November 9, but his flight has now been pushed ahead to November 21,” he added.

The counsel pointed out that the court had earlier granted Dr Asim permission to go abroad for treatment and ordered him to return within a month, which he had fully complied with. As he appeared to be healthy, the court ordered his name be put on the ECL again, he added. The court after hearing arguments issued notice to NAB with the direction to submit a reply regarding Dr Asim’s request till November 16.

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‘pak herbal medicines exports can go up by five times’ LAHORE

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akistan has been earning around $1.5 billion through export of herbal medicines, which could be raised by Tive times if local companies are issued licences to prepare these medicines.

This was stated by President of Pharmaceutical Lawyers Forum and renowned pharmacist Noor Mehar

Advocate, in an exclusive talk with APP, here on Sunday. He said the volume of Indian export of herbal medicines was around $45 billion, which was double of its allopathy medicines export. He claimed that Pakistan could surpass this mark of $45bln in the next few years if the Drug Regulatory Authority Pakistan (DRAP) issues manufacturing licences to local herbal companies.

Around 5,000 herbal companies are working in Punjab only, he

added. Responding to a question, he said Rs 6 billion of aphrodisiac drugs were also available in the local market while Rs 10 billion could be earned through export if those were allowed to be manufactured locally. Many comapnies had applied for licences to prepare aphrodisiac medicines at local level.

Over 4,500 out of 10,000 applications for registration of herbal companies and their products had been rejected by DRAP, while only

240 licences had been issued to pharma companies to manufacture their products.

After expiry of date of application for registration of their products on October 1, 2014, over 10,000 herbal, nauticeutical, homeopathic, both foreign and local, companies applied for registration of their products and their registration. After a period of scrutiny, over 4,500 companies, including local and foreign ones, were found ineli-

gible on the basis of incomplete documents and other necessary material for the reiteration through DRAP. However, DRAP has issued licences to 636 herbal companies including 240 local and 396 multinational for manufacturing their products so far. It was learnt that over 30,000 herbal drugs and cosmetic production companies had been operating in the country without any registration and certiTication from DRAP.

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Iran’s heavy crude oil price exceed $60 TEHRAN: Brent for January settlement gained 15 cents to $63.64 a barrel on the London-based ICE Futures Europe exchange, after falling in the past two sessions. “The latest catalyst for this move higher was the sharp rise in geopolitical tensions last weekend, with growing confidence in an OPEC extension and strong oil demand fueling the rally previously”, said USA bank Goldman Sachs.

Crude oil prices drift lower early Wednesday after Saudi Arabia’s monetary authority seeks to allay investor concerns.

Oil markets were stable on Friday, supported by ongoing supply cuts led by OPEC and Russian Federation as well as by strong demand, although the prospect of rising USA shale output capped prices around recent gains.

‘More and more awareness sessions on cpec should be conducted’

Tuesday November 14, 2017

Chambers

pakistan will further enhance trade relations with Malaysia

LAHORE

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ore and more awareness sessions on CPEC should be conducted to make the people aware of the actual potential. Small and Medium Entrepreneurs seems nowhere in the mega CPEC structure besides big economic zones under CPEC are being set up which have nothing to with SMEs as they do not have sufficient funds to invest. These views were expressed by the speakers at the awareness seminar on CPEC organized by the Women Chamber of Commerce and Industry (WCCI) here Friday. Founder President WCCI Lahore Division Dr Shehla speaking on the occasion said that every Chinese is being given free hand to work in

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every sector while the local stakeholders have been facing barriers in executing their businesses. She said that the government needs to make all aspects of the CPEC transparent and crystal clear so that more and more local entrepreneurs can get benefits from the much hyped CPEC. WCCI President said that Falahat Imran said that as a nation we should be optimistic about the CPEC but the ground reality is that the people are confused about the project often seem to be questioning about it as to what they have for them and what they need to added and contribute to the mega project. She said that more and more awareness sessions on CPEC should be conducted to make the people aware of the actual potential of the CPEC. Vice President Anila Salim said that the small and the medium business people seems nowhere in the mega CPEC besides the big economic zones have nothing to do with CPEC as we do not have sufficient funds.

FAISALABAD

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uhammad Nafees Ziakria designated Pakistani High Commissioner to Malaysia has underlined the importance of bridging trade deTicit between the two countries and said that in this connection the Pakistani business community has to play its pivotal and proactive role.

Addressing the members of the Faisalabad Chamber of Commerce and Industry (FCCI) here , he said that Malaysia is a small country with total Population of about 30 million but every year 26 million tourists visit this country which is quite enough number to create demand of Pakistani goods of different kinds.

Zikria said that he will try his optimum best to bring the business community of two countries closer to each other so that they could launch joint ventures for value addition which will also generate much needed economic activities in Pakistan. He said that he was also contemplating to set up a ‘display centre’ for Pakistani products in ad-

dition to establishing a cultural centre in Malaysia to cement the people to people contacts.

He requested President FCCI to identify speciTic products of textile chain enabling him to pave way for its exports to the Malaysian markets. He said that although Malaysia is itself a small market but through this brotherly Islamic country, we could have access to a big market of ASEAN. However, for this purpose, Govern-

ment as well as business community would have to make concerted efforts with a strong commitment of patriotism. He said that 20% of Malaysian population belongs to Buddhists community. Pakistan has many religious sites for this Buddhists community but during last few years not even a single Buddhist visited Pakistan. He said that he will also try to exploit this important aspect of Pakistan to promote religious tourism for

Seminar on Small Business Startups at icci ISLAMABAD

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he Islamabad Chamber of Commerce and Industry in collaboration with SMEDA organized a seminar on “small business startups” to create awareness in youngsters and aspiring entrepreneurs how to start a small or new business successfully.

Speaking at the occasion, Muhammad Asghar Nasar, Regional Business Coordinator, SMEDA said that his organization was working to stimulate SME led economic growth through supporting an enabling business environment, enhancing access of business development services to SMEs and capacity building of SME sector entrepreneurs. He said the seminar for small business startups was a

part of the initiatives to foster entrepreneurship culture in the country. Areeb Masood Khan of COMSATS University being the resource person gave a detailed presentation to the audience covering various aspects of starting a small business startup. He explained in detail the matters related to preparing for business startup, aiming for business finance, coping with legal aspects and preparing business strategy and developing a business plan.

The participants highlighted lack of capital and financing, lack of venture capitalists, complicated & lengthy business registration processes, over-regulation of businesses, lack of required information & guidance and lack of supportive government policies for entrepreneurs as major hurdles for stating small business startups and urged that government should ad-

dress these issues to foster an ecosystem for entrepreneurship in the country. Speaking at the occasion, Muhammad Naveed, Senior Vice President, Islamabad Chamber of Commerce and Industry said that Pakistan was a country of young talent and government should take policy measures to encourage youth towards entrepreneurship that was the best approach to cope with the issues of unemployment and poverty. Nisar Mirza, Vice President, Islamabad Chamber of Commerce and Industry highlighted the initiatives that ICCI was planning to encourage youngsters towards entrepreneurship so that instead of job seekers, they could become entrepreneurs and job creators for others. He said ICCI was working to establish an Incubation Center to facilitate the growth of business startups.

the Baddish community. He told that he has planned to organize an exhibition of Pakistani products in April next year in Malaysia in collaboration with LCCI. He invited FCCI to join this initiative to market the Pakistan related products of Faisalabad.

He further told that Malaysian government has ratiTied an agricultural agreement which will also help us to export agricultural products to Malaysian markets.

icci calls for special incentives for young entrepreneurs heikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that youth has the potential to put Pakistan on fast track economic growth by becoming entrepreneurs and government should offer special incentives to young entrepreneurs for launching successful business ventures so that they could play more effective role in the economic development of the country. He was talking to a delegation of Youth Business Development Association of Pakistan (YBDAP) that visited ICCI led by its President Raja Waqas Janjua. Asim Ali Kazmi Patron-inChief, Raja Shafqat Chairman, Arsalan Saddique Senior Vice President, Taimur Awan Secretary General, Youth Business Development Association of Pakistan. –CB Report

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Customs Adjudication hears 48 seizure cases FAISALABAD: The Collectorate of Customs Adjudication adjourned the hearing of 48 seizure cases worth Rs124.325 million during the month of October 2017.

Sources told Customs Today, that Collector Customs Adjudication Asif Abbas adjourned the hearing of eight cases involving amount worth Rs 68.225 million regarding seized items. These items consisted of vehicles, ladies fabrics, baby shoes, televisions, mobile phones and remote controls.

Tuesday, November 14, 2017

CUSTOMS BULLETIN

ASS peshawar takes into possession nDp vehicle & goods PESHAWAR irfAn BAHADur

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he Anti-Smuggling Squad of the Customs House Peshawar, after receiving a direction from Collector Customs Gul Rahman, impounded an NDP vehicle and goods worth Rs11.971million in the standard market on the second day of November of current FY2017-18.

The sources informed Customs Today at the MCC Peshawar that Anti-Smuggling Mobile Squad of the MCC Peshawar took into possession Toyota Fielder Car-2003, F/O tyres and sonic CV joint for LTV. The AntiSmuggling Squad also seized a brake pad for LTV, tie rod end for LTV, ball joint for LTV and steering rod for LTV also including BGF hydraulic parts.

The sources further informed CT that Anti-Smuggling Squad has received secret information from Collector Customs Gul Rahman after which an anti-smuggling drive was started that resulted in the 5th capture of NDP goods and a vehicle. The Anti-Smuggling Squad of the Customs House Peshawar also impounded chassis frames for HTV, F/O velvet cloths and Bedford truck with registration No: E-5117 (U/S 157).

Secp amends provisions of companies Act, 2017 ISLAMABAD

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ecurities and Exchange Commission of Pakistan (SECP) has amended provisions of Companies Act, 2017 related Tinancial disclosures.

A statement said that the SECP approved amendments to the third, fourth and Tifth schedules of the Companies Act, 2017. Pursuant to promulgation of the 2017

Act on May 30, 2017, disclosure requirements of fourth and Tifth schedules became applicable to various classes of companies for preparation of Tinancial statements, in addition to the applicable Tinancial reporting frameworks prescribed for each class under the third schedule. Stakeholders have since been highlighting concerns over practical difTiculties in complying with some of the additional disclosure requirements of the respective schedules. One such requirement was to disclose information of related parties, irrespective of any transactions

with such related parties.

The disclosures were required based on very broad deTinition of related parties, as provided in the new law by including directors, managers, key managerial personnel, their relatives, spouse, siblings, lineal ascendants and descendants etc. This posed practical difTiculties for the companies to compile and present such non-Tinancial information in the Tinancial statements.

Moreover, the respective schedules contained requirements for disclosing beneTicial ownership of foreign shareholders, other than

natural persons, in the companies.

It was highlighted that such disclosures should be part of the prescribed pattern of shareholding of the companies instead of the Tinancial statements. The accounting and audit fraternity and the corporate sector have been proposing changes to the schedules to address their concerns. Therefore, after consultation with stakeholders, the SECP has amended the third, fourth and Tifth schedules to address the practical difTiculties in its implementation and to ensure consistency in deTinitions, applicable Tinancial reporting frameworks as well as the text. For

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disclosures in the Tinancial statements, the companies have to follow the requirements of the applicable Tinancial reporting framework, therefore, it appears cogent to apply the deTinition of related party prescribed in the respective Tinancial reporting frameworks for accounting and Tinancial disclosures. In this context, an explanation has been added through the notiTication to this effect. In order to comply with legal requirements of section 208 of the Act, i.e. for entering into related party transactions or arrangements, approvals and record keeping, the deTinition given in the said section shall prevail.