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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
Daily
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Karachi, Thu November 16, 2017
ISLAMABAD
TARIQ DERYA
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he Model Customs Collectorate of Islamabad generated surplus Sales Tax with an amount of Rs121million against the assigned proportional revenue target for 10 days of November of Financial Year 2017-18. The Model Customs Collectorate Islamabad earned surplus revenue of Rs30million as With Holding Tax during 10 days of Financial Year
2017-18 against the allocated proportional revenue
Vol 2, Issue No. 292
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target under the same head. According to details given by sources of Model Customs Collectorate (MCC) Islamabad that, during 1st to 10th of November FY17-18, the MCC Islamabad received Rs247.31million of Sales Tax (ST) against the earmarked proportional revenue collection target of Rs126.54million. The Islamabad Collectorate got Rs123.69million as ST during the first corresponding 10 days of November FY17-18. During above said period, the MCC Islamabad collected Rs106million of With Holding Tax (WHT) while it was assigned a proportional revenue target under the same head amounting to Rs70.06million. The MCC Islamabad was earmarked Rs233.52million for the whole month of November of FY17-18 under the head of WHT.
Islamabad Customs collects Rs121m additional ST during 10 days
Customs Preventive Sukkur seizes 366 cartons of Iranian smuggling chocolate
Member Customs Zahid directs to complete pending inquiries on priority basis
US-Canada border arrest shows varied human smuggling routes
Appraisement East generates Rs28.05m of all duties & taxes during seven days
MCC of Islamabad generated surplus ST with an amount of Rs121million | SEE PAGE 01 |
ASO Hyderabadhas confiscated foreign origin NDP 366 smuggling cartons | SEE PAGE 02 |
FBR Member Customs Zahid Khokhar once again has directed Karachi customs | SEE PAGE 05 |
US authorities have arrested a Honduran national for allegedly smuggling | SEE PAGE 07 |
Appraisement East has collected Rs28.05m of customs duty, sales tax | SEE PAGE 08 |
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FST reserves decision on complaints filed by FBR Thursday, November 16, 2017
National
ISLAMABAD: The Federal Service Tribunal (FST) reserved a decision on an implementation complaint filed against the Federal Board of Revenue (FBR) by Abbas Rashid. Ishtiaq Ahmed and M Javed Iqbal Kasi heard the final arguments in the case and reserved the decision. The same bench heard the cases, asking the tribunal to ensure implementation over its earlier announced decision which was not yet complied with by the board authorities.
Customs Preventive Sukkur seizes 366 cartons of Iranian smuggling chocolate
ISLAMABAD
HYDERABAD
NAEEM ULLAH TARIQ
ASLAM ANJUM QURESHI
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he Islamabad High Court (IHC) dated in office the hearing of a customs matter involving M/s Aftab Traders and Model Collectorate of Customs. A single bench of the IHC comprising Justice Athar Minallah heard the matter and dated in office after counsels asked for time and demanded adjournment of the case for two weeks though the bench only adjourned the matter for a week. Collector Customs had filed the case against M/s Aftab Traders. Meanwhile the bench also dated in office hearing on cases submitted by M/s Pakistan Tobacco Company Limited. The bench issued notices to parties to ensure their presence before the court and dated in office the hearing. M/s Pakistan Tobacco Company Limited had filed the reference in which the company had challenged a show cause notice issued by the Large Taxpayers Unit, Islamabad. M/s Pakistan Tobacco Company Limited had contested show cause notices issued by the field offices of Federal Board of Revenue. According to details, M/s Pakistan Tobacco Company Limited had challenged recovery of issued to it in head of outstanding sales tax by the LTU, Islamabad.
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he Anti-Smuggling Organization (ASO) Hyderabad, Customs Preventive Sukkur, has conQiscated foreign origin nonduty-paid 366 smuggling cartons of chocolates valued at Rs527040 involving duties and taxes of Rs365765 during an action near the check-post, Dera Morr, during October 2017-18. The item was being smuggled from Iran into Pakistan. Following strict instructions by Hyderabad Customs Collector Akhlaq Ahmad Khattaq, ASO team conducted various anti-smuggling activities to protect national exchequer. The team, headed by Additional Collector Customs Hyderabad Dr Aamer Nawaz Hamid, constituted a raiding party comprising Inspector ZulQiqar Jamali, In-charge Customs Check-Post, Dera More, and Inspectors, Sepoys, Drivers and other staff. The team intercepted a vehicle near customs check-post and recovered above said foreign origin non-duty-paid cartons. The market value of the item is Rs892805 including duties and taxes. Prior to the recovery, ofQicials asked the driver to produce any legal document about the possession of the item, but he was unable to produce anything legal, so the consignment was seized.
IHC adjourns hearing of case filed by Collectorate of Customs
A case was registered and an investigation was also started. After making a seizure report, the team deposited the impounded cartons into the Sukkur State Warehouse. OfQicials said vigilance has been enhanced against the smuggling of vehicles on roads. Meanwhile, The MCC Hyderabad, Anti-Smuggling Organization (ASO), Customs Preventive, has seized foreign origin 40 packs of Qire-
works/Qirecrackers worth Rs837000 including duties and taxes near Bypass Hyderabad during October 2017-18. Following the direction of Model Customs House Hyderabad Collector, Akhlaq Ahmad Khattaq, the ASO team is executing various operations in the region to frustrate the smugglings. Sources told Customs Today that Collector Hyderabad Akhlaq Ahmad Khattak re-
ceived a tip-off regarding the smuggling bid of the contraband items. He constituted an ASO team comprising In-Charge Superintendent Amb Khan, Inspector Shakeel Kahan, Inspector Abdul Inspector Majeed Barich, Inspector Muhammad Iqbal Mughal, Inspector Muhammad Abid, Inspector Mushtaque Ali Lakho, Sepoys Siddiqui Ali Khaskheli, Nenomal, Ghulam Sarwar and a Driver and other staff.
Customs Exports Section processes 800 extra GDs T
ISLAMABAD
TARIQ DERYA
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he export commodities of Pakistan have increased with $7 million earning during October of Financial Year 2017-18 against the same period of corresponding Financial Year 2016-17. According to details given by sources of Exports Section Islamabad that, during the month of October Financial Year (FY) 2017-18,
the Exports Section did business of $38.738million and earned business of $31.00million. During October FY17-18, the Exports Section showed a growth of 28.64% against the last October FY16-17. It was learnt that the Exports Section processed 800 extra Goods Declarations (GDs) during the month of October FY17-18 against the same period of FY16-17. During October FY17-18, the processed GDs were estimated 3192 while they stood at 2398 numbers of GDs
during the same period of corresponding FY16-17. The sources told CT that, during October FY17-18, the popular exports included leather and leather garments while Qive most favorite commodities included leather, hosiery (knitwear), surgical goods, readymade garments and oil seed and nuts. The other secondary exports were Halal meat, plastic goods, chemical and pharmaceuticals, cutlery, vegetables, sports goods, socks and bed-wears.
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ISLAMABAD
M FAIZAN
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ederal Board of Revenue Member Customs Muhammad Zahid Khokhar once again has directed Karachi customs heads to complete the pending inquiry reports on corruption cases against lower staff as early possible and made decision. According to sources the instruction of Member Customs has sent a written reminder to the heads of Karachi Customs and asked them send their suggestion and recommendations to curb this menace. This will help the Federal Board of Revenue to formulate the new strategy regarding the Qield ofQices. It is pertinent to mention here that Karachi based importers were Qiled the complaints against the lower customs staff including principle appraisers, appraisers and examiners but inquiries are still pending and no decision has been made yet in this regard. It is also important to mention here that according to some reports due to corruption in FBR Qield formations Pakistan losing billion of rupees in the head of revenue every year and now the FBR is need to take serious action those culprits which are weaken Pakistan through corruption. Member Customs FBR Zahid Khokhar determined to eradicate the corruption from Qield formations completely and
Thursday, November 16, 2017
has said many times that there is zero tolerance policy for corruption. Meanwhile, Federal Board of Revenue (FBR) Member Customs Mohammad Zahid Khokhar directed all the collectors to keep an eye over the GDs being Qiled on daily basis in Green Channel. Nearly half of the importers likely to be eliminated from green channel till the end of this year, it learnt here. Sources told Customs Today that these directions came from Member Customs Mohammad Zahid Khokhar after two separate reports have been sent to him by Directorate of Customs Intelligence and Investigation (I&I) and Collectorate of Customs Preventive comprising on the evidences and facts surfaced in ongoing investigations against M/s Digicom who smuggled QMobiles worth over Rs1.5 billion under the garb of LED Lights thorough green channel and soon after this scam one other importer namely M/s KM Steel was booked in a FIR registered by Port Qasim Collectorate for Rs23 million tax evasion by misusing the green channel facility in last week. Member Customs Zahid Khokhar directed all collectors to keep an eye over the GDs are being filed on daily basis in Green Channel while he further directed them to eradicate suspicious importers from Green Channel to keep an control over the opportunities of smuggling and tax evasion. These directions have been implemented and are being followed by the
customs ofQicials from Monday at all the collectorates. An ofQicial concerned, told the that four members team posted at every Collectorate is working for rechecking and scrutinizing the GDs Qiled by the importers into the Green Channel on daily bases to ensure that no suspicious record holder company or tax evader could take the illegal beneQits from Green Channel. They are also working to eliminate the bad reputed importers and companies from Green Channel list for this purpose they are checking the past record of importers expectedly nearly half of the importers likely to be eliminated from green channel till the end of this year.
khar d K ho i h a Z n eye toms keep a er Cus o t s r o Memb ct ail y d on d ll colle e a l fi d e g t ein ther d i re c s a re b he fur D e l G i e h h nel w ous over t uspici n C han s e e e t r a G c i n keep o erad basis i nel to hem t n t a d h e C t d i re c G re e n ies of r tunit o r s f ro m p e t p r o o imp er the ion trol ov x evas n a o t c d n n a ling a smugg
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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
Potentials of regional trade
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akistan has been maintaining its trade relations with India and Afghanistan despite border tension and poor diplomatic relations for the last many years. Kabul is the great beneficiary of Pakistani products which are available in every market of that country. The trade balance is overwhelmingly in favour of Pakistan and the bilateral trade has the potential to bring the volume to $5 billion a year. There are also vast export potentials to enhance trade with Iran and the Pakistani exporters should avail the opportunity to grow their share in that country as the country is still under the shadows of sanctions imposed by certain nations. According to reports, Pakistan exported $500 million worth of goods to the regional countries, including India and Bangladesh but its imports remained $256 million during the last few months, showing that overall trade balance remained in favour of Pakistan. However, the trade balance remained in India’s favour during the last fiscal year when Pakistan imported goods worth $1.6 billion against exports of less than $500 million.There is still significant trade potential to enhance trade with India. Incidentally, the two economies are pursuing open trade policies with the rest of the world but offer limited concessions to each other. Trade volume between Pakistan and China was $4 billion in 200607 but reached $13.77 billion in 2015-16 while Pakistan’s exports have jumped to $1.69 billion from $575 million during the same period, showing that trade balance remained in favour of China. It is claimed that most of the goods imported from China were related to China-Pakistan Economic Corridor. However, the other neighbouring countries could not come out of their political differences to boost regional trade. The loss of one country is the loss of the other country but no country could apply this formula in the broader sense Pakistan and India are two major countries in the SAARC region where trade remained hostage to political implications. A fanatic and hostile government in India is at its best to spoil relations with every neighbouring country, not only with Pakistan, but also with Sri Lanka and Bangladesh.
Trade with partner countries I
LAHORE
DR AFTAB AFZAL
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t is not the Qirst time that trade delegations from various countries are visiting Pakistan and seeking to enhance business to business cooperation with their local counterparts. However, a signiQicant improvement in the trade activities could not be achieved in any form other than that the visiting delegations leave the country with tall claims that they would avail the opportunities offered by Pakistan. Currently, various foreign delegates are in the country from Poland, Germany and Turkey to China, Hong Kong, Tunisia and Indonesia and are expressing serious desire to under-
take joint ventures and exploring investment opportunities in Pakistan, but the time will tell the exact situation. So far, free trade agreements, which are signed with various countries, could not leave positive impression on the country’s economy. Rather, balance of trade is in favour of other countries to which such agreements are signed. It shows the fact how incapable are our policymakers and negotiators who almost always bring failures to their credits. Another signiQicant failure is inability of the ofQicials to convince the partner countries about burgeoning economic activities in Pakistan and liberal investment policies offered to foreign investors. The government
could not even cover the shortage of electricity and improve law and order in industrial cities of the country, including Karachi. So far, only China has emerged as the principal investor in Pakistan and all other friendly countries like the United States and Germany and ‘brotherly’ countries such as Saudi Arabia and the United Arab Emirates have done nothing but lip-service or made limited investment far less than their potential. The government also has failed to arrange business to business contacts with friendly and brotherly countries and could not sell the vast opportunities it offers to foreign investors in the country. No doubt there are huge investment opportunities for for-
eign businesspersons, investors and industrialists but there are other dozens of things to do to create friendly business climate in the country. Pakistan’s tax system is complex and cumbersome and this point has been raised on several occasions by international Qinancial institutions, but despite all reforms and policies, the system could not be improved to the desired level. There is also lack of coordination between the business community and the ofQicial machinery within the country and there is urgent need to Qill this gap. The foreign delegations are in the country and are consuming hundreds of man-hours and this exercise should not go waste at the end of the day.
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Boost for Australian citrus exports to China Thursday November 16, 2017
World
SYDNEY: Citrus Australia has welcomed the announcement by Assistant Ministers for Agriculture and Water Resources Luke Hartsuyker and Senator Anne Ruston that China has agreed to amend its import conditions for Australian citrus. The changes come at an opportune time when citrus exports to China are increasing. Citrus Australia has worked closely with the Australian Government Department of Agriculture and Water Resources and Horticulture Innovation Australia over many years in order to improve the import conditions for export to China, and the industry has invested significant research and development funds to support these market access improvements.
US-Canada border arrest shows varied human smuggling routes
Tax cuts will deliver Australia $30b revenue boost CANBERRA
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OTTAWA
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S authorities have arrested a Honduran national for allegedly smuggling several migrants from Central America and Mexico into the United States from Canada, highlighting a rarely seen variation in human smuggling routes amid increased enforcement along the US-Mexico border. US Customs and Border Protection (CBP) agents announced the arrest of 25-year-old Honduran national Héctor Ramón Pérez-Alvarado for allegedly smuggling 15 migrants 11 Guatemalans and four Mexicans from Canada into the United States through Derby, Vermont along the northeast USCanada border, according to an agency press release. According to an affidavit from US Border Patrol Agent Matthew Palma, on October
Denmark to support smes to spot tax errors rom January 2018, the Danish tax agency will launch a pilot scheme to support small- and medium-sized enterprises on valueadded tax and direct tax compliance matters. The new “VAT and tax check” (moms- og skattetjek) will mean that SMEs can, at their own discretion, have an accountant review a number of selected tax issues, including, for example, the taxation of employee benefits, to identify problematic areas at high risk of taxpayer error. This will allow companies to identify and correct errors before reporting information to the authorities, giving them greater certainty that they wil pay the correct direct tax and valueadded tax, the Government said. In turn, it will free up more time for tax agency officials to tackle deliberate non-compliance. –CB Report
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7, authorities identified a van making multiple trips to a motel in Derby from the border crossing located on the northeast US-Canada border between the town of Beebe Plain, Québec, Canada and Beebe Plain, Vermont. While conducting surveillance on the vehicle on October 8, US Border Patrol agents observed five individuals running south from the Canadian side of
the border before presumably entering Pérez-Alvarado’s vehicle on the US side, according to the affidavit. After following the vehicle back to the motel, agents stopped the van, which was driven by Pérez-Alvarado. They discovered six other passengers inside, all of whom did not have legal status in the United States, according to the affidavit.
‘US dollar’s continued rise rests on major tax reform delivery’
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n an upswing in recent months, the fate of the U.S. dollar hinges on whether Congress passes major tax reform, with future Federal Reserve interest rate rises already priced in, according to the latest Reuters poll of currency strategists. But an agreement to overhaul the complex U.S. tax code – giving the largest American tax cut since modern corporate tax began more than a
century ago – is by no means certain by the late November deadline that the Republican Party says it is aiming for. Indeed, optimism about the dollar, which had its best month since February in October, has wilted following a Washington Post report on Tuesday that suggested Republican leaders were considering a oneyear delay in the implementation of a big corporate tax cut to comply with Senate rules. –CB Report
ustralia could gain an extra $30bn in revenue if the government cuts the company tax rate while wages and economic growth will take a permanent hit if nothing is done, a new report shows. Treasurer Scott Morrison is aiming to introduce the full corporate tax rate cut from 30 to 25 per cent by 2026, in a bid to boost Australia’s international competitiveness and economic activity. The Australian reports a Treasury research paper, out today, predicts Australia could see up to $30 billion in extra tax revenue due to the stronger economic growth if the full tax rate cut is implemented. State budgets could also beneQit from greater GST collections through Australians spending more. But there could be major economic
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consequences if Australia does not cut its corporate tax rate, particularly with US President Donald Trump pushing to slash America’s rate to 20 per cent. “Countries that further cut their tax rates in response to the US may avoid the negative impact that the US cuts would otherwise have on investment, GDP and wages, but will compound these impacts for countries that do not move their rates,” the report says. “For example, if EU member states and Canada responded by cutting their own corporate tax rates, investment in these jurisdictions would pick up relative to doing nothing. “While some of that investment may come from their own savings, it would also increase the pull on funds from the rest of the world. “Such responses would increase the potential negative impact on investment in Australia. “While the US would experience higher GDP and real wages as a result of this increased investment, other countries, including Australia, could experience a permanent reduction in the level of GDP and real wages.”
Vietnam plans major solar power growth ver 100 provincial government ofQicials, investors and other stakeholders gathered yesterday in HCM City to discuss policies for the developmnet of solar energy. ”We would like to provide guidance to investors, local governments and Qinancial institutions about how to develop solar energy in Vi t Nam,” Ph m Tr ng Th c, deputy head of the Ministry of Industry and Trade’s Electricity and Renewable Energy Agency, said in his speech at a workshop on “Introduction of circular 16/2017/TT-BCT on solar power project development and standardized power purchase agreement for
solar power projects”. He explained the contents of the circular and took questions from participants. Consultants from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) shared the international perspective on solar power development in Vi t Nam, and made a presentation on international and regional experiences in the technical and Qinancial assessment of solar power projects. Solar has been high on the agenda in Vi t Nam since the publication of the Prime Minister’s decision 11/2017 in April, which Qixed the price for solar power at 9.35 cents/kWh. –CB Report
India, Italy pledge to renew economic ties
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ROME
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ndia and Italy pledged to inject “renewed momentum” into bilateral economic engagement, especially in infrastructure, hitech manufacturing, textiles and automotive sectors. The India-Italy joint statement is-
sued after the meeting between Prime Minister Narendra Modi and visiting Italian counterpart Paolo Gentiloni called for further strengthening of economic linkages between the two nations. The two leaders committed to work in a “result-oriented and mutually beneQicial manner by injecting a renewed momentum into the broad-based economic engagement between the two coun-
tries”, the statement said. Modi called upon the Italian industry to explore India’s untapped business opportunities in infrastructure, food processing, renewable energy and high-tech manufacturing sectors. Gentiloni also called upon the Indian industry to identify business opportunities in Italy’s textiles, automotive, leather, machinery and chemical sectors. The two leaders
took note of the progress made by the 19th session of the Indo-Italian ‘Joint Commission for Economic Cooperation’ (JCEC) held at the ministerial-level. Modi and Gentiloni agreed to convene the next session of the JCEC in India in 2018. The statement further said the Prime Ministers announced the organisation of an Indo-Italian High Level Forum on Design.
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Hyderabad Customs confiscates 40 packs of imported fireworks HYDERABAD: The MCC Hyderabad, Anti-Smuggling Organization (ASO), Customs Preventive, has seized foreign origin 40 packs of fireworks/firecrackers worth Rs837000 including duties and taxes near Bypass Hyderabad during October 2017-18. Following the direction of Model Customs House Hyderabad Collector, Akhlaq Ahmad Khattaq, the ASO team is executing various operations in the region to frustrate the smugglings.
Thursday, November 16, 2017
CUSTOMS BULLETIN
Appraisement East generates Rs28.05m of all duties & taxes during seven days KARACHI WAQAR AHMED ANSARI www.customsbulletin.com
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he Customs Collectorate of the Appraisement East has collected Rs28.05million of customs duty, sales tax, income tax and federal exercise duty during seven days of November. Sources told reporter that the Customs Appraisement East received Rs6.78million as customs duty, Rs 9.34million of sales tax, Rs 4.59 million as income tax and Rs 7.34 million of federal excise duty during 14 days. It is pertinent to mention here that the Customs Collectorate of the Appraisement East generated Rs13.26million of customs duty, sales tax, income tax and federal exercise duty during seven days of November including the collections of Rs3.23million as customs duty, Rs4.25million of sales tax, Rs2.28million as income tax and Rs3.50million of federal excise duty during seven days. The Appraisement East got Rs74.23million of customs duty, sales tax, income tax and federal exercise duty during the previous month of October and generated Rs26.87million as customs duty, Rs18.78million of sales tax, Rs13.85million as income
tax and Rs14.73million of federal excise duty during 31 days of October. If
we talk about the Qirst 14 days of October, the Customs Collectorate of the
Appraisement East received Rs24.97million of customs duty, sales
tax, income tax and federal exercise duty during above said days.
Around 61,753mt LPG imported in nine months ISLAMABAD
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he country has imported around 61,753 metric ton (mt) Liquefied Petroleum Gas (LPG) during first nine months of the year 2017, official sources said. “The LPG import stood at around 513,788 mt in 2016, while 2,45,578 mt in 2015 and 62,117 mt in 2014,” they said. During the
last four years, the number of LPG marketing had reached 144 and the government had decided to set up LPG-air mix plants in far-Qlung areas of the country where facility of natural gas was not available. Currently, the two state companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) are working to set up 59 LPG-air mix plants at designated sites in their respected operational areas. “The project is aimed at providing gas facility to the population in the areas where facility of natural gas is not available and to dis-
courage deforestation. At the plants, LPG will be mixed with air to produce synthetic gas for onward supply to the consumers through distribution networks like natural gas,” the sources said. The SNGPL will install LiqueQied Petroleum Gas (LPG)-air mix plants in Beor, Ban, Kurbagla-Dewal, Company Bagh, Tret, Phagwari, Rawat, Ghora Gali, Ariari, Karor, Kotli Sattian, Santhan Wali, Kahuti, Lehtrar and Pangar in Punjab and Darosh, Balakot and Ayun localities in Khyber Pakhtunkhwa. In Azad Jammu and Kashmir, the facility would be provided in
Muzaffarabad, Rawalakot, Kotli, Palandri, Bagh, Dhirkot and Bhimber, whereas a plant would be installed in Gilgit, the sources said. The SSGCL, they said, would set up LPG plants at Umerkot and Mithi areas of Thar in Sindh, and Zhob, Qilla Saifullah, Loralai, Kharan, Musakhail, Qilla Abdullah, Keecha at Turbat, Khuzadar, Uthal, Winder, Muslim Bagh, Killi Khanzai, Chaman, Sherani, Sanjawi, Chaghi, Panjgor, Hamal, Washuk, Wadh in Khuzdar, Barkhan, Mitri (Bolan Katchi), Injeera (Khuzdar), Gandva (Jhal Magsi, Kohlu, Awaran and Bela in Balochistan. Answering a ques-
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tion, the sources said the LPG air mix project on SNGPL system was at different stages of implementation like planning, survey, import of plants and acquisition of land, while the SSGCL had started the process of site selection and land acquisition under the project. The company had worked out Rs 14 billion cost for the mentioned plants and the tenders would be Qloated once the feasibility study was completed. “The SSGCL is exploring the possibility to arrange Qinancing for the same from its own resources which is primarily the savings from other projects,” the sources added.