Tuesday, 7 November 2017

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Karachi, Tue November 7, 2017

ISLAMABAD

M FAIZAN

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ederal Board of Revenue (FBR) Member Customs Muhammad Zahid Khokhar has directed all collectors through chief collectors that complaints of corruption and misuse of powers against custom staff and ofQicers, who are specially working in Qield ofQices, should be inquired on priority and transparent basis and reported back to

him about the results.

In reply to a query by Customs Today, he said only few people are stigma on the face of FBR and the department should be rid of them.

He said if any employee of the FBR is involved in corrupt practices it is better for him to resign.

He said, “I have already issued instructions in this regard.” He also warned those customs ofQicials who are involved such practices that if it is proved they have made assets beyond their income limits then FBR will send their cases to NAB for

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further legal action.

He told that FBR is tackling it and dozens of inquires against staff and ofQicers are pending. FBR have their own system of accountability and no one can escape from it. He has conveyed his message to whole business community that Pakistan Customs is always ready to listen them and will resolved all their issues according the law and if they have complaint any staff send it to him with proof I assured that action will be taken against him without any delay.

Islamabad Dry Port collects Rs60.75 million extra of October

PCA detects tax evasion of Rs 4.56 million by M/s SG Enterprises

Customs Preventive seizes NDP auto parts, cloth, from Babu Sabu

Pak plans to take multiple steps to boost trade with African countries

AFU Islamabad surpasses allocated targets with Rs463.99m during 30 days

IDP generated Rs60.75million surplus Customs Duty the first 25 days of Oct | See pAge 02 |

Post Clearance Audit has detected duties and tax evasion of Rs 4.56 m | See pAge 03 |

ASO impounded illegally imported auto parts, cloth, worth millions of rupees | See pAge 04 |

Ministry of commerce has planned to take multiple initiatives to enhance the trad | See pAge 14 |

AFU attained a surplus revenue collection with an extra amount | See pAge 16 |

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FBR issues breakup report of revenue generated in Q1 FY2017-18 Tuesday, November 7, 2017

Islamabad

ISLAMABAD: The Federal Board of Revenue has issued a breakup report of the revenue collected in the First-Quarter of the current Financial Year 2017-18.

The Federal Board of Revenue generated Rs128.229million of Customs Duty during the First-Quarter while Rs281.035billion had been done as direct taxes.

Likewise, the FBR received Rs316.223billion of Sales Tax and Rs39.605 billion as Federal Excise Duty.

Finance Minister Senator Muhammad Ishaq Dar said the FBR is well on the track by achieving the annual target.

Islamabad Dry port collects rs60.75 million extra of october

ISLAMABAD

ISLAMABAD

cuStoMS BuLLetIN report

tArIQ DerYA

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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. The IHC bench comprising Justice Athar Minallah heard the matter and dated in office after counsels asked for time, and demanded an adjournment of 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 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 Islamabad Dry Port generated Rs60.75million surplus Customs Duty during the Qirst 25 days of October Financial Year 2017-18 against the assigned proportional revenue target for the same period while the Islamabad Dry Port earned extra revenue of Rs10.11million during initial 25 days under the same head against the allocated target for the whole month of October 2017-18.

According to details explained by Tahir Iqbal Khattak, Deputy Collector Islamabad Dry Port (IDP), that the dry port showed its performance as per expectation. The IDP earned Rs271.75million of Customs Duty (CD) during 25 days of October Financial Year (FY) 2017-18 whereas it was allocated the proportional revenue target of Rs211.00million for above said 25 days. Deputy Collector told CT that the IDP was allocated Rs261.64million revenue target for the whole month while the current collection of 25 days as CD is extraordinary against the earmarked revenue target. The IDP showed 103% average of achievement against the monthly target of October FY17-18 whereas it received Rs221million revenue during the Qirst 25 days of October FY16-17. The IDP collected extra revenue of Rs50million during ini-

Ihc postpones hearing of case filed against customs collectorate

tial 25 days of October FY17-18 against the same period of previous FY16-17 as CD. Meanwhile, The Customs Islamabad Dry Port collected Rs233.92million surplus revenue under all the heads during 1st July to 23rd of October Financial Year 2017-18 against the assigned revenue target under all the heads. The revenue collection target must be revised downwards due to imposi-

tion of Regulatory Duty on Imports.

This was said by Tahir Iqbal Khattak, Deputy Collector Islamabad Dry Port (IDP), while talking to Customs Today. He said the IDP received Rs2223.12million under all the heads during three months and initial 23 days of October FY17-18 whereas it was allocated Rs1989.12million under all the heads. During said period, the IDP

generated 11.76% of increase against the earmarked revenue target during above said period.

Khattak said the IDP earned Rs919.844million of Customs Duty during the 1st of July to 23rd of October FY17-18 against the assigned revenue target of Rs968.205million under the same head while it did Rs946.205million during the same period of FY16-17 as CD.

customs tribunal dismisses reference against FBr

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ISLAMABAD

NAeeM uLLAh tArIQ www.customsbulletin.com

ustoms Appellate Tribunal dismissed a customs reference Qiled against Qield ofQice of the Federal Board of Revenue (FBR).

The bench was hearing a customs case Qiled by M Awais. The appellant had challenged Model Collectorate of Customs’, Islamabad decision before the tribunal.

The bench in the meantime dated

in ofQice hearing on customs cases Qiled by Assistant collector Model Collectorate of Customs, Islamabad, M/s Universal Gateway, M/s New Ehsan Enterprises and M/s Pepsi Cola International. M Awais and M/s Pepsi Cola International had Qiled case against Model Collectorate of Customs, Islamabad.

M/s Universal Gateway and M/s New Ehsan Enterprises had submitted cases against Directorate General of Intelligence and Investigations, Islamabad.

Earlier, a bench of tribunal had heard and dated in ofQice hearing of Khurram Zafer Nazeer Ahmed, and

M/s Musa Ghee International, M/s Waseem Autos and M/s Nisar Traders’ cases. M/s Waseem Autos and M/s

Nisar Traders had Qiled cases against Model Collectorate of Customs and Directorate General of Intelligence and Investigations, Islamabad. The bench had dated in ofQice hearing on cases Qiled by M/s Parts & Parts, M/s Chief Autos, 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.

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Customs Court sends suspect to jail in currency smuggling case KARACHI: Customs Court Judge Syed Faiz Rasool Rashdi has sent a suspect namely Murtaza son of Mustafa to Central Jail Karachi on judicial remand, who is booked for attempting to smuggle contraband foreign currency of Rs 3,717,300 from Dubai to Karachi. During the hearing, the investigation officer produced the suspect before the court and informed that a team of the Anti-Smuggling Organization intercepted him at Jinnah International Air Port Karachi and searched his bag.

He further informed the court that during the search, the customs authorities recovered UAE Dirham 105,500 and Saudi Riyal 25,000 from his possession.

court sends suspects to jail involved in hSD oil smuggling

Tuesday November 7, 2017

Karachi

pcA detects tax evasion of rs 4.56 million by M/s Sg enterprises

KARACHI

M B rANA

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he Customs Court Judge Syed Fiaz Rasool Rashdi sent suspect namely Anwar son of Ghulam Qadir and Abdul Samad son of Abdul Wahab to Central Jail Karachi on judicial remand, who were booked in a case of attempting to smuggle 22400 liters of Iranian HSD oil. During the hearing, investigation officer produced the above mentioned suspects before the court and informed that on a credible information, a team of Anti-Smuggling Organization intercepted a Hino truck bearing registration number TKN-577 and during the search recovered 22400 litters Iranian HSD oil which was smuggled from Iran through Baluchistan for disposal in local market.

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Appraisement east detects tax evasion

by M/s gM traders KARACHI

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he Model Customs Collectorate of Appraisement East has unearthed tax evasion of Rs 3.28 million in the clearance of surgical items imported by M/s GM Traders. Source told Customs Today that the Collector Appraisement East Ashadd Jawad directed the R&D section to verify the post clearance consignments of the importer M/s GM Traders. During the scrutiny, it was found that the said importer willfully used Green Channel in the clearance of a consignments of Surgical items and caused a loss of Rs 3.28 million to the national exchequer in terms of duty and taxes. The sources further informed that a recovery notice has been sent to the importer. The R&D sources said that the importer has also assured that it will deposit the evaded amount of Rs 3.28 million during within seven days.

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KARACHI

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irectorate of Customs’ Post Clearance Audit has detected duties and tax evasion of Rs 4.56 million allegedly by M/s SG Enterprises, it is learnt.

The official sources told Customs Today that M/s SG enterprises imported four consignments of heavy duty generator parts and others machinery parts under PCT Heading 5406.2409 and cleared PICT Karachi vide GDs No LM-63589 on January 16, 2016, by paying customs duty at 13 percent after claiming benefit of SRO 689/2007.

However, the subject goods are correctly classifiable under PCT 5607.2584 attracting customs duty at 20 percent and income tax at 10 percent. Thus, by way of mis-declaration of classification, M/s S G enterprises evaded/short paid Rs 4.56 million.

Therefore, the importer, has violated the provisions of Section 34 (1) (2) & (3A) of the Customs Act, 1969, Section 2, 4 & 9 read with Section 42 of the Sales Tax Act 1990 and Section 146 of Income Tax Ordinance 2001 punishable under clauses (1), and 19 of Section 158(1) of the Customs Act 1969, Section 39(5) of the Sales Tax Act 1990 and Section 154 & 162 of Income Tax Ordinance 2001

and section 7A of the Sales Tax Act 1990 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. Accordingly, an audit observation was issued to M/s S G Enterprises for explaining and clarifying as to on what basis they have avoided/ evaded the livable duty and taxes.

The importer, however, failed to

M/s Sg enterprises imported four consignments of heavy duty generator parts and others machinery parts under pct heading 5406.2409 and cleared pIct karachi vide gDs No LM63589 on January 16, 2016, by paying customs duty at 13 percent after claiming benefit of Sro 689/2007

kk enterprises moves Shc against Vr 874/2016

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KARACHI

cuStoMS BuLLetIN report www.customsbulletin.com

he Sindh High Court (SHC) has issued notices to the customs ofQicials and deputy attorney general on a constitutional petition Qiled by M/s KK Enterprises against determination of customs values of “Ceramic and Porcelain Tiles” over and above 12.5 percent of the Valuation Ruling No 874/2016 by the Director General of Valuation.

While hearing the petition, a twomember bench, comprising Justice Munib Akhtar and Justice Omer Sial, also directed them to Qile their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner stated that it is engaged in import and trade of goods having desperation “Ceramic & Porcelain Tiles”, it was informed by the customs department that Director General, Directorate General of Customs Valuation, Customs House Karachi revision proceedings under section 25 D wherein the DG having no ju-

risdiction of customs values of subject good over and above 12.5% of the valuation ruling no 874/2016 dated 22/06/2016. Citing Chairman Federal Board of Revenue, Collector of Customs Collectorate West, Collector of Customs Collectorate East, Collector of Customs Collectorate Port Muhammad Bin Qasim and Director General, Directorate General of Customs Valuation, Customs House Karachi as respondents, petitioner pleaded the court may declare that act of the respondents is illegal, mala Qide and arbitrary.

come up with any tangible evidence and explanation and was also unable to refute the charges leveled by the department.

Earlier Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 2.28 million allegedly by M/s Hakeem Ali Associates. Earlier Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 2.28 million allegedly

by M/s Hakeem Ali Associates.

Shc issues notice in horizon Int’l case indh High Court (SHC) has issued notices to the custom authorities of Port Muhammad Bin Qasim for Nov 30 in a petition filed by Horizon International. The bench earlier heard Hyder Shaikh advocate of Franklin Law Associates who submitted that the consignment of Indian suiting was illegally detained due to which petitioner was being forced to pay demurrage.

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Customs Court extends hearing of accused in under-invoicing case Tuesday November 7, 2017

Lahore

LAHORE: The Special Federal Court of Customs Taxation and Anti-Smuggling has adjourned the hearing of an alleged tax evader for Monday whose post-arrest bail plea was approved. Name of the accused was placed on the Exit Control List.

Accused Muhammad Saqlain was involved in the under-invoicing in the import of goods. He was arrested while trying to flee the country.

On Tuesday last week, customs court granted his bail against the surety bonds of Rs500000. Accused Saqlain paid his bonds of Rs500000 and then the court allowed him to go.

customs court sends customs preventive seizes NDp chinese citizen to prison auto parts, cloth from Babu Sabu on judicial remand LAHORE

M IMrAN MehAr

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he Special Federal Court of Customs Taxation and AntiSmuggling has approved a 14-day judicial remand of an accused identiQied as Chinese citizen when he was booked at the Lahore Airport while attempting to smuggle foreign currencies.

The Investigation and Prosecution team of the Customs Preventive presented him before the court of Tahir Sabir. The customs court sent him to prison on judicial remand.

Earlier, the Pakistan Customs Preventive and Airport Security Force on Monday arrested a Chinese passenger for alleged currencysmuggling at the Lahore Airport.

customs preventive, ASF foil attempt of currency smuggling ustoms Preventive team and Airport Security Force on Monday arrested a Chinese passenger for alleged currency smuggling at Lahore airport. According to details available to Customs Today a foreign national, who was going to Bangkok via an international airline, was held during checking at the Allama Iqbal International Airport following the recovery of foreign currency worth Rs2.5 million. The Pakistan customs officials have recovered US dollars 20,000 and 15,000 Chinese Yuan from his possession. The accused has been shifted to unknown place for interrogation in custody of officials of Pakistan Customs, while a case has been registered against him under Pakistan Customs Act 1969. According to revised rules of the State Bank of Pakistan regarding foreign exchange. –CB Report

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A foreign national, who was going to Bangkok by an international airline, was held during checking at the Allama Iqbal International Airport following the recovery of foreign currency worth Rs2.5million.

The Pakistan Customs ofQicials have recovered $20,000 and 15,000 Chinese Yuan from his possession.

The accused was shifted to an unknown place for interrogation in the custody of the ofQicials of Pakistan Customs. Pakistan Customs has registered a case against the accused under Pakistan Customs Act-1969.

A passenger can carry up to $10,000 or equivalent notes of another currency while going abroad.

The SBP also clariQied that people, travelling to or from Pakistan, can carry Rs10,000 in cash as earlier limit was Rs3,000.

A number of currency smuggling cases have been registered in the last two months.

LAHORE

M hAYAt

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ustoms Preventive AntiSmuggling Organization (ASO) impounded illegally imported auto parts, cloth, chemicals worth millions of rupees from Babu Sabu Interchange. OfQicial sources told Customs Today that on the information of Collector of Customs Preventive Faiz Ahmad , the ASO Lahore team number-3 intercepted a bus bearing registration no: LES/ 16-7987 of Niazi Bus Service on Daweoo Bus Stand and recovered 780 units of HD digital receiver, 200 units of auto-parts, 1,500 yards of foreign made cloth and 80 kilogram of chemicals.

The ASO team that undertook the operation consisted of ASO Superintendent Nasir Minhas, Deputy Superintendent Agha

collector Adjudication issues order in appeal in iphone smuggling case

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ollector Customs Collectorate of Adjudication issued order in appeal no: 255 in smuggling of iPhone case the other day. Facts of the case as reported are that on 20.5.2017, the customs staff was present in Customs International Arrival Hall, AAIP, Lahore and customs examination of incoming passengers of Qlight no: PK-204 arrived from Dubai, was going on. At about 6.20 hours one of the passenger Mian Javed Ali of the above Qlight was going out from Custom Hall through Green

Channel. On suspicion, he was intercepted and asked whether he was carrying anything dutiable or objectionable with him or in his accompanied baggage to which he replied in the negative. The accompanied baggage of the above passenger was scanned with reQlected image of some different kind of mobile phones in used condition in his luggage. There the luggage of the said passenger was physically examined in his presence which resulted recovery of different kind of mobile phones. –CB Report

Qadeer, inspectors Mansoor Elahi, Muhammad Aslam Chaudhray and Azam Wattoo. It was said that the smuggled goods were estimated at Rs 3 million and the operation was led by Deputy Collector of Customs Moazzam Raza. Sources told The Business that Lahore collector of customs Faiz Ahmad has in-

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structed all the ASO team to adopt zero tolerance against the smuggling activities in the city. The sources said that the smuggled goods were hidden under the seats and in the special made areas of the bus by three accused Bilal Noor Muhammad and Jamil residents of Peshawar.

customs tribunal hears 23 cases he Customs Appellate Tribunal (single & double) bench heard 23 cases and adjourned all the cases to different dates.

According to the details, the division bench-II comprising chairman Justice (r) Malik Manzoor Hussain, Member Technical Imran Tariq, heard 16 cases, including Iqbal Hussain versus Customs Lahore two appeals, Pak Steel versus On Monday, the same bench heard a case of Fahad Jabbar versus Customs Lahore, Azhar Brothers; three appeals Qiled against Customs Faisalabad Directorate of Intelli-

gence and Investigation Gujarat, Abdul Azeem versus Directorate of Intelligence and Investigation Gujrat, Don Valley versus Customs Lahore.

The same bench heard cases of Abdul Saleem versus Directorate of Intelligence and Investigation Gujarat, Abdul Sattar versus Directorate of Intelligence and Investigation Gujarat, Cascade Enterprises versus Customs Lahore, Imran Star versus Directorate of Intelligence and Investigation Gujarat. Same bench heard appeals of Pak Telecom nine appeals versus customs Lahore. –CB Report

Fto adjourns hearing of appeal filed by M/s waqar Ameen

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LAHORE

SAJID NAwAZ

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he Federal Tax Ombudsman (FTO) has adjourned hearing of a case Qiled by Waqar Ameen , a resident of Mandi Baha ud Deen against the Regional Tax OfQice (RTO), Sargodha, until the next hearing. According to details, FTO

Advisor Mian Munawar Ghafoor heard the case in which counsel for the appellant argued that the RTO had failed to release the sales tax refund of the last two years claimed by the company.

He said the RTO collected excessive tax from Waqar Ameen from the last two years. He approached the commissioner concerned many times for issuance of refunds but

the RTO ofQicials did not pay refunds even after the passage of reasonable time. At the end, the company decided to approach the FTO seeking interference in this case.

The counsel appealed the FTO advisor to direct the RTO to clear refund claims. The counsel further said the RTO should refund the excessive collection in the wake of taxes by the end of Qinancial year

but the situation is quite otherwise.

Delay in issuance of refunds put burden on taxpayers, he said, adding the RTO Sargodha should audit cases and release extra amount collected from the taxpayers. On the other hand, counsel for the RTO argued that appellant Waqar Ameen has not submitted all the record to the ofQice on which basis it is claiming for refunds.

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PESHAWAR NADIr khAN

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www.customsbulletin.com odel Custom Collectorate collected Rs2287 million in head of various duty collections in the month of October 2017 against assigned target of Rs1853.28 million of October 2016 having difference of Rs433.93 million with percentage of 23.41 percent.

According to reliable sources of Custom House in head of custom duty collected Rs979.15 million against Rs752.68 million of the previous year collections with difference Rs226.47 million having percentage of 47.77 percent. In term of sale tax on import the custom house collected Rs548.89 million against Rs371.44 million with difference of Rs177.37 million while the difference in percentage was 47.77 percent.

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Tuesday, November 7, 2017

Similarly under the head of sales tax levied as federal excise duty (FED) on palm oil the Collectorate collected Rs 178.26 million in gross while in previous year this collection was 1Rs32.52 with difference of Rs45 million having percentage of 34.52 percent.

Likewise in the term of sales tax value addition on commercial importers was Rs68 million against the previous year of Rs55.71 million with total differences Rs12.29 million while the difference with in percentage was 22.6%. The Collectorate under the head of federal excise duty (FED)

on import collected Rs20.71 million during the month of October against Rs14.10 million of the previous October 2016. The difference in rupees was Rs6.61 million while difference in percentage was 46.88 million.

In head of withholding tax (WHT) the Custom House collected Rs492.20 million against the previous year Rs526.83 million collection with differences minus of Rs34.63 million while the difference in percentage was minus six percent.

It is merit to mention here that the Custom Collectorate has surpassed the previous target by collecting Rs2287.21 million in gross collection figures were Rs8108 million with total differences Rs433.93 million as compare to October 2016 which was Rs1852.58 million. The total difference was Rs23.41 million having 21.76 percent.

tom of cus d a e h in illion house 9.15 m 7 9 s custom r d he ollecte on of t i l l i m duty c 52.68 with st rs7 ctions e l l again o c r llion us yea .47 mi 6 previo 2 2 s nce r 47.77 diere age of t n e c r pe t having percen

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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

New rating

by Standard & poor’s

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he New York-based rating agency, Standard & Poor’s, has maintained the long and shortterm rating of Pakistan at B, with a downward expectation on the external-sector performance. In its latest dossier, the company believes the stable outlook reflects that external and fiscal metrics of the country will not materially deteriorate from their current level. The country’s economic prospects will remain favourable but further fiscal consolidation could be a challenge in the wake of not up to the mark performance by provinces and due to general elections in June 2018. The agency pointed out that chronic issue of narrow tax base has not only adversely affected the business environment, but also policymaking and reform process in the country and this situation will continue until the formation of the next government after elections. When the company believes in the favourable economic prospects of the country, it lowers its expectations for a couple of years due to surge in imports. However, investment in energy and infrastructure projects would benefit Pakistan with robust growth. The agency could raise rating if the security environment is improved and it strengthens fiscal and external positions of the country. On another note, the ratings will be lowered if the current infrastructure investment fails to yield positive results on macroeconomic stability.The agency hopes that political changes will not lead to economic chaos as it will not affect the institutional and economic profile of the country in the current business environment.

The major issues hindering the foreign direct investment are low income generation, inadequate infrastructure and security risks, but Standard & Poor’s expects the government to keep its policies unchanged.

Ironically, the agency believes that the International Monetary Fund’s three year extended facility programme has helped restore macroeconomic stability and reduced the fiscal and external vulnerabilities.The programme has also supported the reforms that have the potential to spur economic growth and improve living standards of the people. The agency has estimated GDP per capita of the country at $1,500 and forecasted annual GDP growth to average 5.7percent for the next three years thanks to large-scale investment in the corridor project.

New world Bank report I

LAHORE

Dr AFtAB AFZAL

www.customstoday.com

n its ‘Doing Business 2018’ report, the World Bank has ranked Pakistan at 147th out of 190 countries, clearly showing the fact that the country lags far behind its regional competitors in attracting foreign direct investment. The government introduced four business reforms in 2017, which are to facilitate the registration of new businesses, transfer of commercial property and promotion of cross border trade. The reports notes that Pakistan is in the list of South Asian countries which introduced at least 20 business reforms during last year whereas a total of 127

reforms have been enacted in the region during the last 15 years.

Out of four major business reforms, one deals with starting a new business and replaces the need for obtaining a digital signature for a company with a less costly personal identiQication number and the facility is available both in Lahore and Karachi.The government has ensure transparency in the land registration process in Karachi by publishing online fee schedule and the list of documents which are required for completing any property registration. The country has increased the protection of minority investors by making it easier to sue directors in case of prejudicial transactions with in-

terested parties. This facility is also available in Lahore and Karachi. The government has also developed a new container terminal and enhanced its customs platform for electronic document submission to facilitate import and exportin the two cities.

According to the report covering the regional proQile of South Asian countries, Pakistan ranked 172nd in paying taxes;171st in across border trading;156th in enforcing contracts; 82nd in resolving insolvency; 20th in protecting minority investors; 105th in getting credit; 170th in registering property; 167th in getting electricity; 141st in dealing with construction permits; 142nd in starting business and 147th in

business environment. The major focus of reforms in South Asia is in the area of protecting minority investors and took measures to protect the minority shareholders. Ironically, the South Asia is the only region which failed to represent in top 50 ranking of the world for ease of doing business. But India is one of the 10 economies which has improved in the most of the areas measured by the doing business report. Pakistan needs capacity building of the ofQicials sitting in the key positions, who are responsible for implementation of the reforms. Any reform can be rendered useless when implementing authorities are incapable of grasping the situation.

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FBR withdraws zero-rating facility on electricity to M/s Converter KARACHI: Federal Board of Revenue (FBR) has withdrawn zero-rating facility on supply of electricity to M/s Converter (Unit-2).

According to details, FBR has made amendments in Sales Tax General Order (STGO) No.176 of 2017.

It is also mentioned that decision has been taken as per Regional Tax Office (RTO), Peshawar’s recommendation. It is added that M/s Lahore Electric Supply Company (LESCO) to start charging sales tax on the supply of electricity to above mentioned company with immediate effect.

AtIr adjourns hearing of case filed by M/s pak telecom Mobile

Tuesday November 7, 2017

National

court adjourns hearing of case filed against accused involved in smuggling

ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

ppellate Tribunal Inland Revenue (ATIR) Account Member Dr Ghulam Mujtaba Bhatti continued the hearing of tax matters remanded back by the Islamabad High Court. The ATIR Member Technical heard M/s Pak Telecom Mobile Limited’s matter which was contesting a show cause notice issued by the field offices of the Federal Board of Revenue (FBR). According to details, M/s Pak Telecom Mobile Limited had challenged recovery notice issued to it in head of outstanding income tax by the LTU, Islamabad. Pakistan Telecom Mobile Limited had submitted the department had issued the de-

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ISLAMABAD

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M IMrAN MehAr

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he Special Federal Court of Customs Taxation and Anti Smuggling adjourned hearing of the case Qiled against accused Mohammad Sarwar who was arrested from Sialkot International Airport.

According to details accused Mohammad Sarwar was travelling from South Africa to Sialkot was checked by the customs ofQicials deputed at Sialkot airport. Customs team during search of his luggage found 30 costly mobile phones hidden in baggage of Muhammad Sarwar.

Customs team arrested the accused and produced him before customs court for physical remand but customs judge denied the request of customs investigation team for physical remand and send him to jail for judicial trial.

Muhammad Sarwar also Qiled a petition for his post arrest bail that has also adjourned because of unavailability of prosecutor of the court. On other hand the Customs Court adjourned hearing of 16 cases related to customs matters. During

the hearing of most of the cases, the counsels for the accused persons requested the court to postpone the hearing of their respective cases for preparation of arguments on which the court adjourned the hearings of cases for different dates.

According to the cause list, three out of 16 cases were Qixed for formal hearing Qiled against accused namely Shehzad, Abdullah Tariq Fateemi and others. Pre arrest bail pleas were also scheduled for the day that the court has also ad-

journed for next hearing.

The court has also adjourned hearing of the cases involving narcotics, tax evasion, and customs matters. Cases from Faisalabad, Lahore, Gujranwala and Multan were also scheduled for hearing.

rs290b whitened under realty amnesty scheme mand for the tax year 2013 in head of income tax under provisions of Income Tax Ordinance, 2001. Federal Board of Revenue (FBR), officers of LTU including Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and ATIR. Appellant had challenged the decision claiming that it waken in violation of law and the department did not fulfill the legal obligation while deciding the matter. The appellant had prayed the tribunal to hear the matter and decide in light of law and provide it lawful relief in this regard.

Meanwhile, the tribunal also received an application from M/S Pak Telecom Mobile Limited for early hearing of a tax matter pending with tribunals for months.

ISLAMABAD

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cuStoMS BuLLetIN report www.customsbulletin.com

ore than Rs290 billion worth of black money have been whitened in just three months of the realty sector’s tax amnesty scheme as the people paid Rs877 million in taxes.

More than half of these transactions were carried out in Karachi.

About one-fourth of property transactions took place in Lahore and roughly one-third each in Islamabad and Hyderabad.

The Federal Board of Revenue (FBR) received Rs877.3 million in taxes under Section 236-W of the Income Tax Ordinance from July through September, according to ofQicial statistics. The section had been inserted in the law in December last year to give legal cover to the tax

amnesty scheme for the realty sector. Under the law, the sellers and buyers of real estate can get their immovable assets legalised by paying a nominal 3% penalty as advance income tax, according to the Income Tax Ordinance that the PMLN government got passed from parliament in December last year.

After paying 3% of the transac-

tion value, these people are allowed to incorporate hidden wealth into the books of accounts.

On the basis of tax payments of Rs877 million, independent tax experts have estimated that the sellers have legalised roughly Rs292 billion worth of black money. These transactions were carried out by the sellers and if the value of buyers’ trans-

actions is included, the amount will rise 100%. At the standard 30% income tax, the FBR lost Rs87 billion in revenues on the amount that the people legalised by opting for the amnesty scheme, excluding the penalty that is 100% of the payable tax. The largest amount of Rs150 billion was legalised in Karachi where people paid Rs452 million in taxes under Section 236-W from July through September of the current Qiscal year. Lahore was the second major city where people declared roughly Rs75 billion worth of property by depositing a meagre Rs227 million in the kitty.

Islamabad was the third city where people declared Rs31 billion worth of real estate, bearing a cost of Rs94.4 million followed by Hyderabad where roughly Rs26 billion was legalised by paying Rs79 million in taxes.

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Suleman assumes charge as Peshawar Transit Trade Addl Director Tuesday November 7, 2017

National Muti-ur-rehman takes charge as Addl commissioner-Ir

ISLAMABAD: Suleman Yaqub Khan, a Pakistan Customs Service officer of BS19, has assumed charge as Additional Director of Directorate of Transit Trade, Peshawar.

Suleman, pursuing the Board’s Notification No.2876-C-I/2017, dated 12.10.2017, took the charge of the post of Additional Director (BS-19), Directorate of Transit Trade, Peshawar with effect from October 25.

Ammara Durrani assumes charge as Dc at Appraisement east

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uhammad Muti-ur-Rehman Mumtaz, a BS-19 officer of Inland Revenue Service, has assumed charge as Additional Commissioner-IR. Muti-ur-Rehman, in pursuance of Board’s Notifiacation No. 2883-IR-I/2017, dated 27.10.2017, took the charge of the post of Additional Commissioner-IR, Large Taxpayers Unit, Lahore with effect from October 30. Meanwhile, Shehryar Akram Awan, a BS-18 officer of Inland Revenue Service, has assumed charge as Deputy 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 Deputy CommissionerIR, Regional Tax Office, Sargodha with effect from October 23. The officer took the charge of the post of Deputy Commissioner-IR, Corporate Regional Tax Office, Karachi with effect from October 30.

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Akbar Ali promoted to Assistant private Secretary kbar Ali, a Stenotypist (BS14) posted at Model Customs Collectorate, Quetta, has been promoted to the post of Assistant Private Secretary (BS16) with immediate effect and until further orders. He will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall deem to be held until further order. The officer if already drawing performance allowance equal to 100 per cent of basic pay will continue to draw it on his promotion. –CB Report

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mmara Durrani, a Pakistan Customs Service ofQicer of BS18, has assumed charge as Deputy Collector at Appraisement East. Ammara, pursuing the Board’s NotiQication No. 2720-C-II/2017 dated 28.09.2017, relinquished the charge of the post of Deputy Director, Directorate of Post Clearance Audit, Lahore with effect from October 10 and took the charge of the post of Deputy Collector, Model Customs Collectorate of Appraisement (East), Karachi on October 17.

Meanwhile, Muhammad Haris Ansari, a Pakistan Customs Service ofQicer of BS-19, has taken charge as Additional Director, Directorate of Reforms and Automation (Cus-

toms), Karachi. The ofQicer, in pursuance of Board’s NotiQication No.2242-C-I/2017, dated 18.08.2017, relinquished the charge

of the post of Additional Collector (BS-19), Model Customs Collectorate of Appraisement (East), Karachi with effect from August 25

and assumed charge of the post of Additional Director, Directorate of Reforms and Automation (Customs), Karachi on the same date.

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

KARACHI

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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 Qinal notices to tax defaulter companies for recovery of dues. The Customs Adjudication-II has served a Qinal 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 Qinal 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 Ad-

judication-II Muhammad Javed issued a Qinal notice to the company on September 9. After receiving the notice, the company deposited Rs3.88million in favor of the Customs Department.

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FTO adjourns hearing of appeal filed by M/s Al Rehmat Textile FAISALABAD: The appeal filed by M/s Al Rehmat Textile has been adjourned till next date.

The refund case was filed before the Federal Tax Ombudsman (FTO) against Corporate Regional Tax Office (CRTO) Faisalabad.

As per details, FTO Advisor Haji Irshad Ahmed Ali heard the complaint in which the counsel for the appellant argued that the RTO has not released the refund to the appellant for the last Three years.

He said that the Regional tax office Corporative Zone Faisalabad collected excessive tax from the appellant during the last three years. The company approached to the officer concerned many times for issuance of refunds.

Smuggling via Motorway a serious problem affecting state, businessmen ISLAMABAD

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muggling of contraband items via Motorway is a serious issue which is affecting the state, business community and the society adversely.

The Motorway and Highway Police are not cooperating with the Customs Department even when Customs Department wants to intercept some secret information based vehicles carrying smuggled goods on the Motorway or Highway. According to details given by sources that, after the imposition of Regulatory Duty (RD) to discourage imports, the possibility of smuggling goods via Motorway and Highway will increase. Sources added that the estimated loss to the national exchequer due to smuggling on Motorway and GT

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Road is almost Rs1.00 to Rs2.00billion per month. Most of the smugglers are Afghan nationals who possess fake Pakistani CNICs which is also a security threat to the country besides the smuggling. The sources told CT that the volume of smuggling may increase with the recent imposition of RD vide SRO 1035 (i) 2017. Sources added that the said huge loss to the economy can be reduced through effective coordination among the National Highway, Motorway Police and Pakistan Customs as Highway and Motorway police enjoy the presence on the Motorway and GT Road. Regarding the fact of the matter, the sources stated that the Pakistan Customs is facing hardship in curtailing smuggling through Motorway and Highway as police do not allow the Customs Department to conduct any antismuggling activities under Section 48(2) of the National Highway Safety Ordinance 2000.

National

Multan Adjudication employees deprived of meritorious reward during FY2016-17

Quetta customs seizes NDp goods worth rs6.78 million QUETTA

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he Directorate of Customs Intelligence and Investigations seized non duty paid air conditioners (split) and different parts of windows A/C commercial non custom paid molding machines and others things worth Rs 6.78 million.

The sources told Customs Today that Director Customs Intelligence and Investigation Quetta Irfan Javed received creditable information that some smugglers are trying to smuggle non duty paid air conditioners (split) and different parts of windows A/C commercial non custom paid molding machine and others things from Quetta to Karachi. He immediately constituted a raiding team. The team enhanced the vigilance on the Mastung area and started a search operation of vehicles.

During the search, the team intercepted a truck bearing registration no: KSF-872 registered of Karachi, which was heading out of city. During the checking, the customs team recovered 16 non duty paid air conditioners ( split) , different parts of windows A/C and 8 commercial non custom paid molding machines worth Rs 6.78 million.

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ollectorate of Customs Adjudication employees are deprived of meritorious reward in the Qiscal y2016-17.

According to details, Collectorate of Customs Adjudication is one of the most important Collectorate for the generation of revenue in customs and disposal of seizure cases.

The Federal Board of Revenue (FBR) issues meritorious and performance rewards to Customs Collectorate ofQicials on the basis of their performance every year to encourage and motivate them.

The FBR has issued performance and meritorious rewards to ofQicials of Customs Adjudication to deputy collector, additional collector and collector but other employees are deprived of the reward probably due to mistake.

The Federal Board of Revenue and Collectorate of Customs Adjudication to adjudicate cases as per their rank and amount of duties and taxes involved against seized or conQiscated goods for trial. Collectorate of Customs, Directorate of Customs Intelligence and Investigation forwarded their detected seizure cases to Customs Adjudication

Tuesday November 7, 2017

for trial. Collectorate of Customs Adjudication is generating major revenue for the Collectorate after their trial according to Customs Act, 1969. Customs authorities have power of adjudication in cases involving conQiscation of goods or recovery of duty and other taxes not levied, short levied or erroneously refunded, imposition of penalty or any other contravention under the act or the rules made there under Customs Adjudication has decided 392 cases of

worth Rs.540.488 million during Qinancial year 2016-17 and employees of Customs Adjudication played vital role in the completion of these seizure cases. As many as 15 employees of Collectorate of Customs Adjudication Faisalabad OfQice and Multan Camp OfQice including stenographer, clerk, head clerk, inspectors, senior inspector and class IV are still deprived from their meritorious reward from Federal Board of Revenue.

hyderabad customs impounds NDp Land cruiser

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HYDERABAD

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he Customs Intelligence and Investigation impounded a non-duty paid Prado Land Cruiser worth Rs10 million including duty and taxes during a crackdown in city Hyderabad. According to details, Deputy Director Mukhtar Sheikh received credible information about a nonduty paid vehicles in Hyderabad city.

He immediately constituted a special team under the supervision of Superintendent Wilayat Ali Khan.

The Customs I&I team started checking of vehicles near auto Bhan

Road and intercepted a Prado Land Cruiser bearing registration no: JAF103. The customs team asked the driver to show the documents regarding legal import and possession of the vehicle. The driver remained failed to show any required documents to the customs ofQicials. After his failure, the customs team impounded the vehicle and registered a case against the accused under the prevailing customs law.

After making the seizure report, the team deposited the impounded vehicle non-duty paid Prado Land Cruiser market value at Rs 50,00,000 involving duty and taxes Rs 50,69,611 ( Aprox) to the Hyderabad

State Warehouse and forwarded the case to the customs adjudication for further proceeding. The i&I team participated in the above said seizure

was comprised on Inspectors ShaQiq Ali, Muhammad Anees, Sepoy and driver Sikander Ali, Ghayas Ahmed , Sharif, Aslam Chohan.

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World Customs

Russia’s November diesel exports from Primorsk

TAIPEI: The Art Bank program, initiated by the Ministry of Culture (MOC), started showcasing art painted by Taiwanese artists at the Taipei Representative Office in Singapore and the representative’s official residence in the country. A total of 37 paintings by 29 Taiwanese artists are on show, with 19 works showcased in the office and 18 art pieces displayed at the residence, the MOC said. The exhibition will run for one year, the ministry added. MOC Senior Executive Officer Chang Yu-hsuan said that Minister of Culture Cheng Li-chiun had expressed a desire to elevate the international exposure of Taiwanese art by collaborating with the Ministry of Foreign Affairs.

Tuesday November 7, 2017

Business consortium to Dutch pensioners arrested invest $1billion in Africa smuggling 100 kilos of hashish CAPE TOWN

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AMSTERDAM

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Dutch retired couple have been arrested in Norway for trying to smuggle 100 kilos of cannabis into the country, according to Norwegian media reports. The couple, a man aged 68 and a woman aged 75, had hidden the drugs throughout their car. They were caught following a tip-off trying to enter Norway after travelling by ferry from Denmark. Customs ofQicials found 55 kilos hidden in the boot and further packages containing 20 and 25 kilos in secret compartments under the Qloor. The haul is the biggest cannabis Qind ever made in Bergen with a street value of up to €11m, Norwegian media said. The arrests were made on September 5 but have only now been made public. The Dutch foreign affairs ministry is looking into the

china private sector growth at 16-month low hina’s private sector expanded at the weakest pace in sixteen months in October, survey data from IHS Markit showed. The Caixin composite output index, which covers both manufacturing and services, dropped to 51.0 in October from 51.4 in September.

However, any reading above 50 indicates expansion in the sector. The softer increase in overall output was largely driven by a further slowdown in manufacturing production growth. At the same time, Chinese services activity picked up from September’s 21-month low. The seasonally adjusted Caixin China General Services Business Activity Index rose to 51.2 from 50.6. New business increased across both the manufacturing and service sectors during October. Employment at the composite level was little-changed for the third straight month in October. –CB Report

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case, RTL Nieuws said.

Meanwhile, A 37-year-old Dutch man was arrested on Bali with 2 liters of cannabis oil in his possession. He was arrested in Batu Belig immediately after taking possession of the cannabis oil, RTL Nieuws reports. The suspect has been living in a villa in Batu Belig, a town north of Kuta, for two years,

according to the broadcaster. He was under surveillance by the Indonesian authorities for some time.

The Dutch man has not yet been charged. People caught with drugs in their possession in Indonesia face significant punishments. The death penalty can be imposed on people caught smuggling large amounts of drugs into the country.

russian oil output rises in oct after maintenance at pacific fields

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ussian 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, energy ministry data showed, following the completion of maintenance at PaciQic Qields.

In tonnes, oil output reached 46.23 million versus 44.639 million in September, but Russia remains in compliance with a global deal aimed at cutting oil production in order to

reduce excessive inventories and support oil prices. The latest Qigures show Russia cut its oil output by around 317,000 barrels per day from 11.247 million bpd reached in October 2016, the baseline for the global agreement to reduce oil production. It had agreed to curb its oil output by 300,000 bpd from that level as part of the global deal with the Organization of the Petroleum Exporting Countries. –CB Report

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 Mid-Term 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

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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 deQicit.” The SA Revenue Service has previously said South Africa’s cumulative deQicit for 2017 is R17.08bn compared to R83.28bn deQicit in 2016. The National Treasury has slashed the country’s growth outlook by nearly half to 0.7 percent from the 1.3 percent predicted in February. Doley said young Africans could unlock the door to economic prosperity if they were given the keys – capital, education and expertise. Speaking exclusively to Business Report after the breakfast, Doley Jnr, who is the only African-American individual to own a seat in the history of the New York Stock Exchange, said he knew the critical role capital played in transforming developing economies. “I am a Qirm believer that Africa can, and will, fulQil its potential for growth and create opportunities, especially for young people.

Japan’s Sep zinc exports up 13.2% yr/yr

ollowing is a table of Japan’s customs-cleared exports of zinc for September released by the Ministry of Finance on Tuesday.

The Qigures are a total of special high grade (SHG) and prime western grade (PW) zinc.

Figures are converted from yen to U.S. dollar using Japan Customs’ ofQicial conversion rate. Country Sep Yr/Yr Sep Year to end-Sep Yr/Yr list KG % $/KG KG % S. Korea 0 30,440 China 1,835,319 246.2 $3.01 7,187,415 -19.4 Taiwan 1,407,919 2.8 $3.07 9,224,807 -5.7 Vietnam 1,179,765 -0.2 $3.19 9,000,167 -5.7 Thailand 585,781 -34.5 $2.58

5,331,312 -39.3 Singapore 99,878 $3.16 598,216 296.9 Malaysia 172,519 -3.2 $3.08 2,265,914 29.1 Philippines 177,170 -51.6 $3.09 1,611,239 -52.6 Indonesia 1,560,133 62.8 $3.07 11,908,435 38.2 Myanmar 0 39,918 India 0 -100.0 562,606 -83.2 Srilank 0 10,000 Bangladesh 399,512 -0.1 $3.18 5,985,381 -14.8 Nigeria 0 1,004,272 Kenya 0 -100.0 149,563 74.9 DJIBOUT 0 1,699,866 6.8 Total 7,417,996 13.2 $3.04 56,609,551 11.0. Meanwhile, Japan’s core consumer prices marked a ninth straight month of annual gains in September but failed to accelerate from the previous month. –CB Report

Bank of thailand selects Simcorp Dimension

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BANKOK

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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 produc-

tive and informed environment to support key decision making.

Thailand is one of the most advanced emerging markets economies in the region. The Bank of Thailand’s acquisition of SimCorp’s best-in-class technology is a key element in realizing its Internal Excellence Strategy, which among other aims to secure Thailand’s sustainable economic well-being.

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PNG Ports stands firm on decision WASHINGTON: PNG Ports Corporation Limited remains firm with thr decision by the Government for Philippines Stevedoring Company International Container Terminal Services Inc, to operate despite protests made by the union last week. The response came after the Papua New Guinea Maritime and Transport Workers Union expressed disappointment over a 25-year contract, awarded to a Philippines Stevedoring Company International Container Terminal Services (ICTSI). According to union general secretary, Reg McAlister, the union is surprised the PNG Ports Corporation and the government have kept the awarding of the stevedoring contract to ICTSI a secret, with no official announcement.

ports of Long Beach approving updated clean air action plan he ports of Long Beach and Los Angeles will consider approving the San Pedro Bay Ports Clean Air Action Plan (CAAP) 2017 Update, a document that would guide emissions reduction strategies for the next 20 years, during a joint public meeting November 2. The CAAP calls for cleaner trucks, improved on-dock rail infrastructure, transitioning the oldest, most polluting ships out of its fleet and speeding up the deployment of cleaner harbor craft in an attempt to transition to zero-emission trucks by 2035 and zero emission terminal equipment by 2030. The governing boards of the two ports will meet Thursday, November 2 at 8:30AM at the Crowne Plaza Los Angeles Harbor Hotel. It will also be broadcast live online at polb.com/webcast and at

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portoflosangeles.org. The final CAAP document will be available at least one week before the joint board meeting, on both port websites and cleanairactionplan.org. The CAAP was developed by environmental teams from both ports over the last two years, incorporating input from meetings with industry, regulatory, community and environmental stakeholders, according to a release from the POLB on Monday. In a public meeting in late August, there were multiple tearful testimonies from residents across Southern California, from South Los Angeles to San Pedro to Long Beach who talked about developing chronic diseases like cancer and respiratory damage.

They demanded for more to be done, despite costs, if the technology is there to do it. –CB Report

Ports & Shipping

ukraine ports open $55 millon berth tender

oakland’s maritime revenue growth slows after losing terminal he Port of Oakland has announced that its maritime revenue grew by just 1.8% in the fiscal year of 2017, which ended on 30th June. This was the first full fiscal year without Ports America Outer Harbour. Ports America exited the terminal in January 2016, saying it was re-focussing its West Coast strategy on Los Angeles, Long Beach, the Pacific Northwest and Western Canada. At the time, Ports America’s decision was criticised by the Port of Oakland for the alleged suddenness of its withdrawal and the disruption caused. Just 13 days after Ports America announced it would exit the terminal, Outer Harbour Terminal LLC filed for bankruptcy.

In a statement this week though, the port said: “The Port reported a 1.8 percent hike in FY 2017 operating revenue for for its Maritime Division. Revenue increased despite lost income from a bankrupt marine terminal operator that ceased operations at the Oakland seaport last year. –CB Report

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kraine’s port authority has launched an open tender to Qinish building a general cargo berth for Panamax ships and dredge the adjacent water area at the Port of Odessa. Ukrainian and foreign companies can participate in the tender to Qinalize construction on a berth designed for handling of general cargoes on the Androsovsky mole. The Qirst phase of a grain terminal on the Androsovsky mole opened on April 13, 2013.

Now, the area is set to get a new general cargo berth, with a length of 254 metres and the depth under the berth of 12 metres.

The project to build the berth, called berth 1-z, is expected to take about a year and cost US$55.3 million excluding VAT. A call for proposals was published in in the USPA’s electronic procurement system Prozorro on October 9, 2017 and packages will be accepted until Novem-

Tuesday November 7, 2017

ber 9, 2017. A tender was also recently held to pick an outsourcing contractor, which would provide for reconstruction of the berth number 7 at the Port of Odessa. Raivis Veckagans, the Acting CEO of USPA, said: “Implementation of the project is carried out with the cooperation among the state and port operators, private investors and international Qinancial institutions. “The berth will

be able to accommodate Panamax vessels, while in the rear of the berth a modern powerful grain terminal to be built. “This will positively affect the export potential of Ukraine and increase revenues from port dues to the budgets of all levels. “The task of the Port of Odessa is to provide a transparent, competitive tender, with the involvement of a wide range of participants.”

port of charleston back on record-breaking track WASHINGTON

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fter missing the mark in August, the State Ports Authority climbed back into record territory in September with an 11 percent increase in containerized goods moving across the Port of Charleston’s terminals. The SPA has now set cargo records in eight of the Qirst nine months of this year and set an annual mark for Qiscal 2017, when ended June 30. In September, the SPA moved 101,902 containers.

That compares with 91,784 a year ago. Cargo measured in standard 20-foot units called TEUs, the maritime industry’s benchmark for measuring container volume also set a record for September with 179,856 boxes moved. That’s a 10.4 percent increase over the same month last year. “The port contin-

ues to see year-over-year growth and our Qirst-quarter results, including record September container volumes, reQlect a very positive start to our 2018 Qiscal year,” Jim Newsome, the SPA’s president and CEO, said in a statement.

The agency’s inland port in Greer moved 10,648 cargo containers between trucks and trains in September and its Qiscal year-to-date numbers are 16 percent higher than the same period a year ago. While containerized cargo levels were up, other freight saw declines. Breakbulk, or cargo that isn’t shipped in containers, was down 1.3 percent from a year ago while the number of Qinished vehicles declined by nearly 27 percent. Newsome said a change in models built at the BMW plant Greer is still affecting the number of vehicles the German automaker is exporting to foreign markets. The growth in containerized freight is

being driven by large container ships that are now able to pass through the expanded Panama Canal, with some vessels capable of carrying up to 14,000 cargo boxes at a time. The Panama Canal Authority on Tuesday said the waterway saw a record 403.8 million tons of cargo pass through its expanded locks in Qiscal 2017, a 22 percent year-overyear increase. Since its expansion was completed in June 2016, the canal has had more than 2,000 visits from so-called neo-Panamax ships that wouldn’t have Qit through the older, narrower locks. “These Qigures reQlect not only the industry’s conQidence in the expanded canal, but also illustrate the Panama Canal’s continued ability to transform the global economy and revitalize the maritime industry,” Jorge Quijano, the canal’s administrator, said in a statement. Charleston isn’t the only East Coast port to see

freight increases in the wake of the Panama Canal’s expansion.

The Port of Virginia said it saw 9 percent more cargo boxes in September than the same month a year ago. “We are seeing continued growth in all of our trade lanes, good peak-season volume and anticipate a solid performance for the remainder of the year,” John Reinhart, executive director of the Virginia Ports Authority, said in a statement. “We have forward momentum in several areas. The Port of Savannah moved the equivalent of more than 1 million 20-foot containers across its Garden City Terminal during the first quarter of fiscal 2018, reflecting 5.8 percent growth. “Sustained organic growth couple with increased market share are driving these volume increases,” Griff Lynch, executive director of the Georgia Ports Authority, said in a statement.

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NHC gives approval for five-year development plan ISLAMABAD: The National Highway Council (NHC) on Thursday gave approval for budget estimates for 2017-18 and the five-year development plan 2018-23.

Federal Minister for Communications Hafiz Abdul Karim presided over the meeting of NHC at the Ministry of Communications. Minister of State for Communications Muhammad Junaid Chaudhry, secretary communications, National Highway Authority chairman and other members of the council participated in the meeting.

The meeting was informed that under the Public Sector Development Programme (PSDP) around Rs320 billion were allocated for the year 2017-18.

Tuesday November 7, 2017

Business

pak to boost trade with African countries ISLAMABAD

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he ministry of commerce has planned to take multiple initiatives to enhance the trade with African countries.

The ministry, in consultation with its allied departments, has prepared a comprehensive policy plan ‘Look Africa’ to give priority to Africa including Senegal and other African countries for the enhancement of Pakistan-Africa trade.

The Trade Development Authority of Pakistan Ministry of Commerce will arrange “Priority Africa for Trade “seminars in the major cities of Pakistan. Now Pakistan is

Foreign reserves decrease by $95m KARACHI

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exploring new markets to increase its traditional and non-traditional exports. In this regard, the Trade Development Authority Pakistan will provide a special subsidy (80-90%) to Pakistani companies to encourage their participation in the trade

crude oil production, refining capacity increasing gradually: official

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he total liquid foreign reserves held by the country stood at $19,842.8 million on October, 2017. The breakup of the foreign reserves position released showed that foreign reserves held by the State Bank of Pakistan (SBP) stood at $13,846.7 million, net foreign reserves held by commercial banks are $5,996.1million, thus total liquid foreign reserves reached at $19,842.8 million.

During the week ending October, 2017, the SBP’s reserves decreased by $95 million to $13,847 million.

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exhibitions in Africa.

The TDAP will sponsor delegations to and from Africa on regular basis. The TDAP has relaxed the hospitality criteria for delegates from African countries including Senegal to attract more delegates and ensure

better participation from Africa in the upcoming Expo Pakistan 2017 to be held from November 9-12, 2017. Pakistan and Senegal agreed to address the difQiculties of trade between the two countries. The Pakistan side has sought Senegal’s support to establish a trade partnership with the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU). Furthermore, it has been decided that the Trade Development Authority of Pakistan will participate in Dakar International Trade Fair to be held in December 2017 to showcase Pakistani products.

The Pakistan has also proposed to establish a Joint Working Group (JWG) on trade with a view to planning, implementing and monitoring plans and objectives in this area.

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ISLAMABAD

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akistan is moving fast towards achieving self-reliance in crude oil production after the government accelerated exploration of indigenous hydrocarbon resources over the last four years.

“Capacity to produce crude oil and its indigenous reQining is increasing gradually. Now, the country has started moving on the path of achieving self reliance in the sector,” ofQicial sources told APP.

Pakistan’s total crude oil production was around 90,000 barrels per day (bpd). They said the Byco Petroleum Company had established the country’s largest production unit, having reQining 120,000 bpd oil, in Balochistan.

The sources said the country’s oil reQining capacity had dropped from 50 per cent mark, which was not considered a good sign for the national economy. Presently, they said, as many as six oil reQineries were operating in the country and they had full capacity to reQine the product as per needs of the country.

However, the sources said, a lot of work was yet to be done in the exploration sector to achieve autarky.

They said currently 70 percent of the current oil demand was met through import and the government had planned to set up more oil reQineries in the coming days.

Recently, they said, the government in a signiQicant move to achieve self-reliance in the oil production sector had given the task to Pakistan Arab ReQinery Company (PARCO) to complete the much delayed multi-billion dollar Khalifa Coastal Oil ReQinery project.

BMg, kccI flay NAB over arrest of member ISLAMABAD

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he Businessmen Group (BMG) leadership and Karachi Chamber of Commerce & Industry (KCCI) office-bearers on Thursday expressed concerns over the arrest of Abdul Hameed Agar by National Accountability Bureau (NAB) Karachi and said that the businessman – who happens to be the brother of former KCCI president Haroon Agar – has been arrested on charge of an alleged Sales Tax Refund of ‘meager’ amount of Rs150,000 without serving any notice prior to the arrest.

BMG Chairman Siraj Kassam Teli, BMG Vice Chairman Tahir Khaliq and other business community leaders, in a joint statement, said that in this regard, a letter has been sent to National Accountability Bureau Chairman Justice (retired) Javed Iqbal in which the arrest of Hameed has been strongly condemned as this move by NAB Karachi has triggered a great deal of unrest amongst businessmen and industrialists. They said that the entire business and industrial community of Karachi criticises the way NAB Karachi has executed such a stern action against a reputable businessman, who has been doing business since past many years and holds a spotless record.

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Large Scale Manufacturing Industry grows 11.3% in two months ISLAMABAD

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he country’s large scale manufacturing (LSM) sector has witnessed growth of 11.30 percent during July-August 2017-18 compared to the corresponding period of last year.

The Quantum Index Numbers (QIM) of large scale manufacturing industries was recorded at 136.18

points during August 2017 against 122.35 points during same period of last year, according to latest data of Pakistan Bureau of Statistics (PBS).

The highest growth of 12.65 percent was witnessed in the indices monitored by ministry of industries followed by Provincial Bureaus of Statistics (PBOS) with 7.19 percent and the indices of Oil Companies Advisory Committee (OCAC) with 3.0 percent. On year-on-year and month-on-month basis, the indus-

trial output increased by 8.54 percent in August 2017 compared to August 2016 while it increased by 2.44 per cent if compared to July 2017. Meanwhile, the major sectors that showed growth during two months of current Qiscal year compared to same period of the previous year, included textile (0.58 percent), food, beverages and tobacco (13.35 percent), coke and petroleum products (16.30 percent), pharmaceuticals (11.04 percent),

non metallic mineral products (19.64 percent), chemicals (3.19 percent), automobiles (30.82 percent), iron and steel products (49.64 percent), electronics (5.44 per cent), leather products (14.79 percent), paper and board (11.78 percent), engineering products (18.35 per cent), rubber products (0.48 percent), and wood products (18.43 percent). On the other hand, the only industry that witnessed negative growth was fertilizers industry

with a decline of 0.31 per cent during the corresponding period.

The provisional QIM is being computed on the basis of the latest production data of 112 items received from sources including Oil Companies Advisory Committee (OCAC), Ministry of Industries and Production (MoIP) and Provincial Bureaus of Statistics (PBoS). OCAC provides data of 11 items, MoIP of 36 items while PBoS proved data of remaining 65 items.

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RCCI demand govt to review imposition of regulatory duty RAWALPINDI: demand Govt to review imposition of Regulatory Duty President Rawalpindi Chamber of Commerce & Industry (RCCI) Zahid Latif Khan urged the government to review imposition of Regulatory Duty (RD) on import of more than 700 items.Addressing a meeting of traders in his office, he said that local industry is unable to meet the growing demands while most of the items are not being manufactured here and imposition of RD will widen the gap between imports and exports.

He said government claimed that RD was imposed on luxury goods, however, he added that certain surgical goods, medical gloves, diapers for senior citizens, chemical and raw material being used in medicines was also included in the luxury item.

SccI stresses for exploring new potential markets SIALKOT

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LccI sector-specific & well tailored delegation to visit Indonesia in Feb

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resident Sialkot Chamber of Commerce and Industry (SCCI) Zahid Latif Malik has urged the government to take steps for streamlining existing markets and identification of new potential markets for Made in Pakistan products. Talking to APP, he said the Commerce Ministry in collaboration with Trade Development Authority of Pakistan and trade associations should work on streamlining the existing markets and identify potential markets. About decline in exports, he said “We have observed our exports are mainly targeted to specific regions which are facing economy slowdown”. Pakistan should focus on exploring new po-

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tent markets like Far-East, Central Asian Republic, Latin America and most importantly Russia, he said.

He further said that effective strategies should be evolved for tapping the potential of the markets and special step should be taken for initiating negotiations for the free trade agreements. In addition to essential resources should be deployed for gathering market intelligence and creating trade linkages, he said. The setting of EXIM Bank (Export import bank of Pakistan) is need of the hour to facilitate the export sector of the country in terms of financing and other related issues, he said and added that the EXIM bank should be given practical shape in the larger interest of export sector in the country.

Tuesday November 7, 2017

FAISALABAD

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high-powered sector speciQic and well tailored delegation of the Lahore Chamber of Commerce & Industry will visit Indonesia in February 2018.

It was revealed by the LCCI President Malik Tahir Javaid while talking to the Ambassador of Indonesia to Pakistan Iwan Suyudhieamri here at the Lahore Chamber of Commerce & Industry. The LCCI Vice President Zeshan Khalil, Amjad Ali Jawa, Shahid Nazir, Khamis Saeed Butt, Naeem Hanif, Dr. Shahid Raza, Khaliq Arshad, Aurangzeb Aslam, Muhammad Waseem, Ch. Zafar Iqbal, Kaleem Arshad, Adeeb Iqbal Sheikh and Muhammad Chaudhry were also present on the occasion.

Malik Tahir Javaid said that visit of the LCCI delegation is of utmost importance as it would explore new avenues for trade, investment and joint ventures that would help achieve the mutual target of sustainable economic development.

The Indonesian Ambassador assured his full cooperation to the

LCCI president to make delegation a great success.

“Let’s do work together for mutual beneQit. It would increase the mutual trade volume and help exploring huge untapped potential exists in the two countries”, the Indonesian Ambassador added. He said that there is a possible chance to collaborate in the various sectors.

The Ambassador also stressed the need for exchange of subject specialists and sector speciQic experts so that both the countries

could be able to learn more and more from each other’s experiences.

He said that sharing of experiences had no match when we talk of any speciQic product or trade with any country so Pakistan and Indonesia must share their experiences in the larger interests of the business communities in the two countries. Indonesian Ambassador also appreciated the LCCI efforts for strengthening liaison with other countries. Malik Tahir Javaid said that Indonesia and Pakistan have

LccI for extension in It return filing date FAISALABAD

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he Lahore Chamber of Commerce & Industry has urged the Federal Board of Revenue to extend the date for Qiling of income tax returns till December 31.

In a statement, the LCCI President Malik Tahir Javed and Vice President Zeeshan Khalil said that extension in date of tax returns Qiling till at least December 31 will be a good favor to the business community and will also help Federal Board of Revenue meeting its revenue targets. They said that businessmen remained busy in the elections of trade bodies besides tackling a number of issues including lack of awareness about the FBR online systems. Therefore, majority of businessmen cannot Qile their

returns within the given timeframe that was very short. They said that immediate extension in the date of tax returns Qiling will not only help trust building but will also pave way for the much-needed expansion of tax net. This facility, they said, will also help establishing strong liaison between the government and the private sector.

Meanwhile, Pakistan’s ranking in ease of doing business can be improved through public-private partnership therefore government should take business community on board.

In a statement, the LCCI President Malik Tahir Javed and Vice President Zeshan Khalil said that country’s ranking should be improved to achieve the required economic goals. They said that it always remained a matter of concern for the economy. Ease of Doing Business in Pakistan averaged 112.78 from 2008 until 2016, reaching an all

time high of 148 in 2015 and a record low of 85 in 2009. The LCCI ofQicebearers said that the cost of doing business is hindering the growth of all sectors of economy whether it is manufacturing or agriculture. They said that Pakistani merchandise are best of the best in the world but fast losing their due place in the international market because of high input cost in Pakistan. They said that ease of doing business, generation of cheap electricity and good governance should be the corner stone of the new economic methodologies to be implemented.

They said that country faced various economic challenges in last year including decline in exports & foreign direct investment, lowest tax-to-GDP ratio and inefQiciency of Public Sector Entities but these challenged can be coped through meaningful partnership and dialogues between the government and the private sector.

old historical links and enjoy cordial relations. The people of both countries are close to each other and share special bondage of friendship and companionship.

He said that Indonesia is a major trading partner of Pakistan as among the top importing and exporting destinations of Pakistan, Indonesia comes at 3rd and 31st places respectively. Traditionally, the balance of trade has been in favour of Indonesia. Last year, the imports made from Indonesia to Pakistan were almost 16 times greater than our exports to Indonesia.

The LCCI President said that the bilateral trade Qigures fairly indicate the economic relations between two countries but these can be even greater if Pakistan is given more access to Indonesian market. Pakistan could not obtain much beneQit from PTA signed between two countries and that is why our exports are not picking up. He said that The volume of two-way trade was dollar 2.18 billion in 2015 which registered just 1.6% growth in a year. Although there was a slight increase in imports from Indonesia but Pakistan’s exports fell by nearly 9%.

FpccI to hold workshop on filing of It returns ederation of Pakistan Chambers of Commerce and Industry, in collaboration with Federal Board of Revenue, has arranged a workshop on “Filing of Income Tax Returns.” The workshop will start at the Federation House by 2:30 P.M, says FPCCI release. The objective of the workshop is to create awareness among the taxpayers about the recent changes made in the returns and statements, and facilitate them in filing these returns without seeking help of tax practioners. FPCCI Secretary General has emphasized the taxpayers to attend the workshop to give their queries which would be answered by FBR officials. –CB Report

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Customs ASO impounds non duty paid Honda Reborn car FAISALABAD: The Customs Anti Smuggling Organization (ASO) has confiscated a Honda Reborn car worth Rs20,00,000 involving duty and taxes Rs9,50,000 during road checking.

According to the details, ASO team intercepted a vehicle Honda Reborn bearing registration no: LEA-9720 model 2009 near Nazimabad and demanded the documents regarding the legal import and lawful possession of the vehicle. But the driver namely Haji Muhammad Saeed could not produce the required documents.

Tuesday, November 7, 2017

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AFu Islamabad surpasses allocated targets with rs463.99m during 30 days of october ISLAMABAD tArIQ DerYA

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he Air Freight Unit Islamabad attained a surplus revenue collection with an extra amount of Rs463.99million during 30 days of October against the assigned revenue targets of the whole month of October FY 17-18 under all taxes (Customs Duty, Sales Tax and Income Tax). According to details explained by Nisar Ahmad Phullerwan, Additional Collector Air Freight Unit (AFU) Islamabad, that the AFU earned Rs972.99million of all taxes during 30 days of October FY17-18 while it was allocated revenue target of Rs509million as all taxes for said period.

The AFU collected Rs50.00million of Customs Duty in a single day on 30th of October FY17-18 “which is the highest revenue collection Qigure in a single day as CD during current month”, he said. Additional Collector told Customs Today that, during last month (September FY17-18), the AFU Islamabad faced a shortfall of Customs Duty (CD).

During current month, it not only chased the earmarked revenue target of the CD but also surpassed it

before the end of the month. The AFU achieved the assigned target of October as Sales Tax (ST) in the Qirst

10 days of October FY17-18.

Telling about the details of Qirst 30 days of the month of October,

Phullerwan added that the AFU Islamabad was assigned the revenue target of Rs215.88million for the

whole month as CD while it earned surplus revenue of Rs237.75million in 30 days of October FY17-18.

Dar’s plea for exemption from appearance till Nov 8 granted ISLAMABAD

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n accountability court here approved a plea Qiled

by Finance Minister Ishaq Dar, seeking an exemption from personal appearance before the court in a graft reference on the medical grounds.

Judge Muhammad Bashir announced the decision on the plea, granting the Qinance minister a

temporary exemption from personal appearance before the court till the next hearing on Nov 8.

At the outset of court proceedings today, Dar’s lawyer Ayesha Hamid Qiled an application on behalf of her client to seek an exemption from personal appearance. The plea was submitted in absence of Dar’s lead counsel Khawaja Harris.

She informed the court that her client was currently out of country, where he would undergo an angiography test later today.

Opposing the plea, NAB’s deputy prosecutor asserted that

the Qinance minister was not afQlicted with any kind of illness and deliberately evading the graft proceedings against him.

The prosecutor said that medical tests for any kind of ailment were also possible in the country, hence the Qinance minister was making unwarranted excuses to skip the court proceedings.

Subsequently, the prosecutor also Qiled an application requesting the court to issue ‘non-bailable’ arrest warrants for the Qinance minister. However, the court rejected the NAB’s application and adjourned the hearing till Nov 8.

At the last hearing on Oct 30, the Dar’s lead counsel Khawaja Harris had also pleaded the court for an exemption from personal appearance after apprising the court that his client had gone to London for a medical check-up after experiencing acute chest pain.

The judge then rejected the application and issued bailable arrest warrants against Ishaq Dar. Earlier, the court had recorded the statements of two NAB witnesses, including Masood ul Ghani of Habib Bank and Abdul Rehman Gondal of Allied Bank, who were also cross-examined by Dar’s

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counsel. The two witnesses had presented in court the Qinance minister’s account opening forms, covering letters, signature specimen cards, statements of accounts and others details. The prosecution team of NAB had earlier submitted a list of 28 witnesses against Dar, out of which Qive witnesses have so far recorded their statements. On Oct 23, the accountability court had issued notice to Ishaq Dar to submit response on an application seeking court’s approval for NAB chairman’s order of Oct 18 freezing the assets of Dar and family.