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pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS
Daily
Vol 1 Issue No. 241
Karachi, Sat November 21, 2015
ISLAMABAD
M FAIZAN
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ederal Board of Revenue (FBR) Chairman Nisar Muhammad Khan has said that scientiOic and technical approach is being adopted to broaden the taxnet, hoping that such methods will increase the strength of taxpayers. The chairman stated this while briefing the World Bank Country Director Pachamuthu Illangovan about the tax administration in a meeting. The country director had called upon Finance Minister Ishaq Dar
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where Finance Secretary Dr Waqar Masood and Revenue Division Secretary, FBR Chairman Nisar Muhammad Khan were also present. The FBR chairman informed the World Bank official about the tax collection and the strategies, which have been designed by the FBR to meet the target. It may be mentioned here that the World Bank and other international financial institution have shown concern over the low tax ratio in Pakistan. However, the ground realities are that the revenue collection of the country is increasing with every passing year. The World Bank country director hoped that new team of the FBR will improve the performance of the department.
Hyderabad ASO seizes contraband items worth Rs 1.2 million
DG Customs Intelligence Imtiaz congratulates Nisar Khan, other Members
Domestic gas users to face 7-hour outages in winter
FBR’s intelligence wing starts reconnaissance of elite fashion designers
Traders call for repair of broken roads to facilitate business activities
Customs ASO has seized electronic items, shampoo, auto parts, toys and gutka | See pAge 02 |
Customs Intelligence Imtiaz congratulated Nisar Khan for taking over chargeof FBR | See pAge 03 |
Abbasi has said that the gas consumers in Punjab will face serious gas crisis | See pAge 04 |
FBR, intelligence arm, has started keeping an eye on the elite fashion designers | See pAge 12 |
The local industrialists in a meeting at ICCI have appealed to the PM | See pAge 09 |
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Excise seizes documents of 109 defaulter vehicles in snap checking Saturday, November 21, 2015
National
LAHORE: The Excise and Taxation Department has started crackdown against token tax defaulters and unregistered vehicles in the different areas of the city and also impounded 18 vehicles. According to Excise and Taxation officials of Lahore Motor Branch, special teams have been formed for the recovery of token tax from defaulters. These teams, which were formed on special directions of Director General Excise Akram Ashraf Gondal, and are working under the supervision of different inspectors, checked documents of hundreds of vehicles in the city and seized documents of 109 vehicles.
hyderabad ASo seizes contraband items worth rs 1.2 million
KARACHI
HYDERABAD
AFtAB chANNA
ASLAM ANJuM QureShI
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he Directorate of Intelligence and Investigation, Inland Revenue, Federal Board of Revenue has recovered around Rs 250 million from Bonanza Garments Industries (Pvt) Limited. The company was allegedly involved in sales tax evasion. The sources told Customs Today that the Directorate of Intelligence and Investigation conducted a successful raid on Bonanza Garments Industries (head office) last month and unearthed sales tax evasion of Rs 250 million for the period from July 2013 to June 2015. The raiding party managed to seize (under seizure memo) bank statements, registers and records in respect of bank record, journal vouchers expenditures and other related issues. The team also acquired soft data and hard copies of sales tax invoices in respect of clients for the period July 2013 to June 2015. After initial scrutiny of the seized record, it has been found by the tax authorities that Bonanza was involved in a significant amount of sales tax evasion while further anomalies of the company are being investigated, sources added.
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he Customs Anti-Smuggling Organisation (ASO) has seized electronic items, shampoo, auto parts, toys and gutka worth Rs 1.2 million during an operation. Sources told Customs Today that the ASO team, following the instruction of Model Customs Collectorate Collector Dr Ahmed Mujtaba Memon under the supervision of Additional Collector Umar ShaOique, conducted an operation to curb smuggling in the region. The ASO team intercepted two containers of M/s Aziz Goods Transport Company and M/s Bilal Goods Transport Company. 70 cartons of foreign origin toys, ball bearing, decoration light, shampoo, balloon, cable wire and electronic Iron were recovered from a container of Aziz transport, while 35 cartons of electronic items, hair spary, auto parts, gutka and other items were recovered from the container of Bilal Transport. The ofOicial asked the both drivers to produce any documents regarding the legal possession of the smuggled foreign origin items but they could not show any documents on which customs conOiscated the goods under prevailing customs law. After making the seizure report
rs 250m duties, taxes recovered from Bonanza garments Industries
the ASO team deposited the conOiscated smuggled goods items in State Werehouse Hyderabad The ASO team comprising Senior Inspector Abdul Ghaffar Sheikh, Seizing Officer Mushtaq Ali Lako, Sepoys Muhammad Sadiq Khaskheli, Muhammmad Usman
Jonejo and others participated in the action. Meanwhile, The Model Customs Collectorate Hyderabad Dry Port and Sukkur division has collected Rs 3.176 million under the head of customs duties and taxes during first four months (July-October) of
current fiscal year 2015-16. As per details, the department generated Rs 648.6 million as customs duty, Rs 2423.27 million in wake of sales tax, Rs 8.570 million under the head of federal excise duty, Rs 95.86 million as income tax during the said perioid.
FBr promotes 14 IpS of customs preventive KARACHI
AFtAB chANNA
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he Federal Board of Revenue (FBR) has promoted at least 14 Inspector Preventive Service of the Customs Preventive to the post of Superintendent Preventive Service BS-16 with immediate effect. According to a notiOica-
tion No 2683-C-III/2015, the ofOicials of the Inspector Preventive Service MCC Preventive who are promoted include: Zubair Israr, Faqir Muhammad Wassan, Saeed Ahmad Khan, Syed Samsam Qadir Shah, Muhammad Humayun, Javed Raza, Syed Muhammad Ali, Javed Iqbal, Muhammad Ashraf Zia, Muhammad Saleem Ch, Muhammad Aleem, Muhammad Iqbal, Muhammad Hanif and Syed Abdul Haleem. “The promotion will take effect from the date of their joining, subject
to the condition that no disciplinary proceedings and enquiry is pending against them. They 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 notiOication says. “The ofOicers already drawing performance allowance equal to 100 percent of basic pay will continue to draw it on their promotion”, it added.
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FBR to achieve target of 1 million tax returns until November 30 ISLAMABAD: The Federal Board of Revenue (FBR) to hit the milestone of one million tax returns until November 30, it has learnt here. According to details, the number of tax returns filer was 7,20,000 till June 30, 2013; however, it has increased gradually up to 900,000 until October 2015. Sources added that the FBR has directed its thinktank to introduce new legal methods of generating tax revenue so that more and more bring into tax net. Sources further told that FBR yearly growth in terms of revenue collection was 3% till 30 June 2015, while FBR collected almost 33 percent increased in the revenue collection from 31 July 2013 to 15 November 2015.
Federal Service tribunal postpones hearing of FBr officials’ case
Saturday November 21, 2015
National
customs Intelligence Dg Imtiaz congratulates Nisar khan, others
ISLAMABAD
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ederal Service Tribunal on Thursday adjourned hearing of FBR officials’ cases seeking relief from the services appellate tribunal. FST Division Bench, comprising of Arshad Bhatti and Javed Iqbal Kasi heard cases filed by Sardar Ali Khwaja and Syed Ghulam Abbas Kazmi seeking directions to FBR to implement tribunal’s orders about their promotion and incentives. The court linked both the cases and sought reply from FBR where both petitioners had been working. The petitioner had filed the case seeking implementation over FST’s decision which was yet not realized by FBR.
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tasneem rehman posted new chief commissioner rto LAHORE
M hAYAt
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he Federal board of Revenue (FBR) has posted new chief commissioner of Regional Tax Office Lahore after the former chief commissioner has been made member administration. According to details, the FBR has posted Tasneem Rehman (Inland Revenue Service/BS21) as chief commissioner RTO Lahore. She has been serving as the chief commissioner of RTO Faisalabad and is posted at RTO Lahore following RTO chief commissioner Waqar Ahmed is made member administration. The RTO sources told Customs Today that new chief commissioner will follow the policies of the former chief commissioner. The former chief commissioner Waqar Ahmed had come hard on the employees union and washed away its existence from the Customs House Lahore.
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G Customs Intelligence and Investigation Imtiaz Ahmad Khan congratulated Nisar Muhammad Khan for taking over charge of FBR Chairman and conveyed his good wishes to him for assuming new assignment. According to sources, DG Customs Intelligence and Investigation Imtiaz Ahmad Khan congratulated FBR Chairman Nisar Muhammad Khan, Member Customs Nasir Masroor, Member Admin Waqar Ahmad, Member Inland Revenue Policy Rehmatullah Wazir Khan and Member Inland Revenue Operation Dr Muhammad Irshad on phone. He hoped and wished that appointment of these senior and skilled professionals will certainly help improve performance of FBR and ultimately increase taxes and revenue for the exchequer. Meanwhile, Imtiaz Ahmed Khan, the newly appointed Director General (DG) of Customs Intelligence and Investigation (I and I), has praised the performance of Multan region in respect of controlling smuggling in the South Punjab. He urged the ofOicials to put their best efforts to break the organized networks of smugglers. He expressed his views during his address to combined meeting to directors and additional directors of different regions in Punjab.
He further said that ofOicials should have to target the high value contraband items and luxurious cars instead of conOiscating the old cars to show mere formality. He emphasized that the ofOicials should do their best to create cracks in the organized networks of smugglers. OfOicials should not harass the ordinary people but their aim should be to seize the high value targets to curb the menace of smuggling from Pakistan, he added.
Dg customs Intelligence and Investigation Imtiaz Ahmad khan congratulated FBr chairman Nisar Muhammad khan, Member customs Nasir Masroor, Member Admin waqar Ahmad, Member Inland revenue policy rehmatullah wazir khan and Member Inland revenue
court approves physical remand of gold smuggler LAHORE
M IMrAN MehAr
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haudary Ameer Muhammad Khan, the special judge of Customs and Taxation Court, handed over Muhammad Rizwan, an alleged smuggler, into the Customs custody for investigations. The Customs Preventive had
confiscated seven kilograms of gold from Muhammad Rizwan at the Allama Iqbal International Airport here on Wednesday morning near about 3am. It is said that market value of seized gold is Rs 30 million. The passenger was arrived from Dubai by Emirates flight EK-622. The sources said that it is investigated that the passenger was a professional who smuggle gold for money from one country to another. He was produced before the
Customs Court where judge has approved his physical remand for further investigation on request of Customs investigation and prosecution team. The Customs authorities registered second case of gold smuggling during November, making a total seizure of 11 kilograms of gold. Earlier, the Customs authorities seized four kilograms of gold from a passenger when he tried to smuggle the gold from Sharjah to Lahore.
DG has also reviewed the performance of the Customs Intelligence for the Oiscal year of 2014-15 alongwith the Oirst four months of the current Oiscal year 2015-16 during the meeting. Meanwhile, After taking charge of Director General of Customs Intelligence and Intelligence, Imtiaz Ahmed Khan has directed the ofOicers and ofOicials to perform their duties honestly as corrupt elements will not be tolerated in the department.
LtBA holds training session he Lahore Tax Bar Association (LTBA) has held 20th session of the professional skill development and training at the Tax House, Lahore. LTBA President Munsha Sukhera and Secretary General Ch Qamruz Zaman, during their lectures, shed lights on various issues pertaining to filing of returns, registration and modification of individual and company.—M-Hayat
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Oil prices slightly up in Asia but gains limited Saturday, November 21, 2015
Business
SINGAPORE - Oil prices were higher in Asia Friday, but gains were limited in a market burdened by a persistent oversupply. A continued rise in US commercial crude inventories further confirmed predictions the glut will last well into next year, with Iran also expected ramp up production when Western sanctions are lifted under a deal with major powers to curb its nuclear programme. At around 0150 GMT, US benchmark West Texas Intermediate (WTI) for delivery in December was trading three cents higher at $40.57 a barrel on its last trading day, while Brent crude for January was up 11 cents to $44.29.
kSe-100 index loses 59 points reach 33848 level KARACHI
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he Karachi Stock Exchange benchmark KSE-100 index Friday lost 59.84 points to close at 33848.6 points level, while the volume of total shares remained 64,688,510. The market recorded the highest trading level of 34005.23 points and lowest level of 33835.88 points, having Rs 3,848,155,510 value of total
Ipr questions ways to control fiscal deficit
traded shares. The three top traded companies were Silk Bank Limited with a volume of 32.276.000 and price per share of Rs 1.94, TRG Pak Ltd with a volume 15,798,500 of price per share of Rs 40.46 and Bank of Punjab with a volume 13,969,000 of price per share of Rs 9.40. The top three gainers were Bata Pakistan XD with price per share 3000; Exide (Pak) with price per share of 1006.86 and Murree Brewery with price per share of Rs 991.73. The top three losers were Unilever Foods with price per share of 6321.11, Honda Atlas Cars with
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he Institute for Policy Reforms (IPR), an Islamabad-based think tank, raised questions over the ways the finance ministry tried to control the fiscal deficit, saying some structural problems still exist on the fiscal front. The IPR, in its fact sheet on the first quarter of the current fiscal year, said fiscal deficit target agreed with the IMF was Rs306 billion for the July-September period of 2015/16.
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he Securities and Exchange Commission of Pakistan (SECP) and National Accountability Bureau (NAB) resolved to spread the message and slogan of “Say No to Corruption” in the corporate and capital market sector to make it operate with full integrity and transparency.
KARACHI
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overnment of Sindh signed implementation agreement with Sindh Engro Coal Mining Company (SECMC) on Thursday for ensuring infrastructure development for the Thar Coal Project. A water utilisation agreement has also been signed with Engro Powergen Thar Limited (EPTL), an important security document for financial close and water allocation for its power plants in Block II, Tharparkar “Another important milestone has been achieved for both mining and associated power plant activities in Thar Coal Block II,” a statement said. Under the implementation agreement with Sindh Engro Coal Mining Company, the government will commit to provide all required infrastructure to facilitate the mining project amounting $600 million. The joint venture agreement under which SECMC was formed, provides the government of Sindh with majority shareholding in the company ie 51 percent and responsibility for the provision of key infrastructure such as road networks, airport facilities, water supply scheme, effluent disposal scheme as well as all required security for expatriate employees who are expected to arrive in the area early next year.
G price per share of Rs 256.52 and Noon Pak NonVot per share of 962 (-18) and 80 shares volume. Earlier, the Karachi Stock Ex-
change came out of the bearish trend by gaining 166.85 points to reach 34113.26 points level till midday.
Secp, NAB hold seminar against corruption in corporate sector
LAHORE
Sindh, SecMc sign accords for thar coal project
To this effect a seminar was held at the SECP on ‘Resistance against Corruption in Corporate Sector and Capital Markets’ organised jointly by the SECP and the NAB on Thursday. Representatives of regulatory bodies, chambers of commerce from all over Pakistan, corporate sector, renowned professionals from the professions of audit and law were present in the seminar. The aim was to create the much needed awareness against corruption, mobilise public opinion and pledge to start a campaign for resistance against corruption and corrupt practices.
Speaking at the seminar, the Chairman SECP Zafar Hijazi has said that corruption in the society is a disease and sincere and vigorous efforts are needed to eradicate it as otherwise Pakistan would grievously suffer. Hijazi reafOirmed that the SECP and the NAB will jointly make concerted efforts to reduce corruption in the corporate sector. He said as opposed to common belief the mission to end corruption is a doable job and if all the concerned institutions work in a concerlied fashion the menace of corruption can be controlled.
Domestic gas users to face 7-hour outages in winter ISLAMABAD
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ederal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has said that the gas consumers in Punjab will face serious gas crisis in upcoming winter season and domestic consumers will face about 7 hours gas load shedding. During the peak winter months
the gas demand in Punjab will reach to 950 Million Cubic Feet per Day (MMCFD) against supply of 650 MMCFD and the government has to resort to gas management, the minister said while addressing a press conference here on Thursday. Flanked by the State Minister for Petroleum Jam Kamal Khan and Advisor on Petroleum Ministry Zahid Muzafar, Khaqan Abbasi said that under the gas management plan the gas supply to the domestic con-
sumers, in Punjab, during peak winter’s months will stay suspended for 7 hours. “As a result of huge demand/supply gap the government in winter will not be in a position to supply gas other than domestic consumers, even domestic consumers will face gas suspension from 10 PM to 5 AM,” the minister added. Independent Power Plants (IPPs) and fertilizer will get only RLNG as currently local natural gas is being provided only to the domestic con-
sumers. However he said that RLNG supply to CNG sector is linked with the availability of LNG as currently due to pipeline capacity problem the gas supply to CNG sector in Punjab was suspended. The minister said that country gas reserves are depleting and warned that if no new gas Oields were discovered the existing gas reserves will be exhausted in next 12 to 15 years. The minister said that in a new
study undertook by Director General Petroleum Concession (DGPC) with Oinancial support from United States Agency for International Development (USAID) the shale gas revised in place resources of the country stand at 10,159 Trillion Cubic Feet (TCF) against previous estimated resources of 586 TCF. The minister said that out of this an estimated 200 TCF of shale gas resources are recoverable against 105 TCF of previous study.
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ith some reservations on the formation of six-member committee tasked to probe import and export of gold jewelry under scheme prescribed by SRO266(I)/2001, the Federal Board of Revenue (FBR) has been requested to re-constitute the committee by addressing reservation raised by Customs ofOicer, Customs Today learnt. The FBR, earlier this month, had constituted a 6-member committee to investigate the mega scam involving export of gold jewelry on fake and forged documents. Collector Exports Karachi Saifuddin Junejo was heading the subject committee while Additional Collectors Ashir Azeem, Tahir Qureshi, Farrukh Sahhad, Raza were members and Deputy Collector Muhamad Rizwan was secretary. The Committee was tasked to determine all the illegalities in the import and export of gold jewelry under the scheme prescribed by SRO 266(I)/2001. While talking to Customs Today, Chief Collector Enforcement South Zahid Khokhar said that a member of that committee from internal audit raised an objection and requested to address the issue. “After, the objection, I forwarded a letter to the Federal Board of Revenue asking them to re-constitute and correct the formation of the committee so that the same could initiate investigations into the mega scams of gold jewelry import and export”,
Zahid Khokkhar added. According to sources, Model Customs Collectorate of Export (Port Qasim) recently registered Oive cases against gold exporters, who were allegedly involved in yellow metal exports worth $214.9 million on fake Form-Es. These exporters had shipped the precious metal on fake Form-E, bringing loss of around $ 214.9 million to the national exchequer. These exporters, according to sources, used names of Oive fake companies – M/s Rubab Corporation, M/s B D Enterprises, M/s Reaz Corporation, M/s Sani Impex and M/s Makkah Enterprises. And, the exporters exported gold worth $214.9 million in the name of these companies on fake Form-Es and added that gold worth $24.3 million was exported on M/s Rubab Corporation, $80.2 million on M/s B.D Enterprises, $62.8 million on M/s Reaz Corporation, $21.7 million on M/s Sani Impex and $25.9 million worth gold was exported on M/s Makkah Enterprises under fake Form-E. Moreover, sources said these exporters had misused Entrustment Scheme prescribed by SRO 266(I)/2001 in connivance with the Deputy Director of Trade Development Authority of Pakistan (TDAP) and availed 80 percent tax exemptions on gold imports during 2011-13 and then gold worth $214.9
million was exported to Dubai by these fake companies under bogus Form-E, which corroborated massive outflow of black money during the said period. The chief collector, Zahid Khokhar, further added that those involved in the mega scam of gold jewelry had been arrested while investigations were underway to trace out the big fish.
lector, l o c f e i h c okhar, h k d i h a Z ed that d d a r e h t e fur ved in th elry l o v n i e s tho f gold jewd o m a c s mega been arreste e had ons wer i t a g i t s e while inv ay to trace out underw big fish. the
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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
Dar’s narratives
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inance Minister Ishaq Dar has asked the Federation of Pakistan Chamber of Commerce and Industry to make a bridge between the government and the traders for better coordination between the two sides help boost economic progress in the country. There is no question to challenge the minister’s words as cooperation and coordination between business community and the government — which regulates its policies through official machinery – is the most important factor to run the economic affairs. Almost 70 years ago, the Norwegians used to work in other countries, but they are now one of the most developed nations on the world map and is a welfare state. This happens because they protected the businessmen which consisted of only four families at the time. In Pakistan’s case, one cannot say for sure that all the businessmen are honest and pay their due taxes, but black sheep in the official machinery are hell-bent to pressure the business community on one pretext or the other. Those who pay taxes and those who do not pay anything are equally treated in this country and on some occasions the tax evaders are treated as VIPs and are given respect in every situation. Mr Dar, in a meeting with officials of the Federation of Pakistan Chamber of Commerce and Industry and bankers, asked them to play an active role for the economic progress of the country and also join hands with the government to promote tax culture which is necessary as the government needs money to run its affairs. He said that the international rating agencies, including Moody’s, have given Pakistan positive ratings and it is the time to consolidate economic gains. No doubt Pakistan is 26th economy of the world with regard to purchasing power parity; it has to devise a mechanism where a businessman should be obliged to pay tax without fear. The tax to GDP ratio in Pakistan is the lowest in the region and it needs to be increased. But witchhunt and harassment of the business community should not be allowed at any circumstances. A taxpayer, whether small or large, should be treated with respect and be given special concessions. The country is facing a shortfall of Rs 40 billion, which it will try to collect by imposing more taxes on the existing taxpayers or by enhancing indirect taxes, adding more burdens on common man. According to experts, the government needs to introduce reforms to create business-friendly environment as well as it should diversify investment portfolio.
Sales tax enigma A
LAHORE
Dr AFtAB AFZAL
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mid growing resentment among the industrialists on the rising cost of doing business, the Federal Board of Revenue (FBR) is working on a proposal to bring the standard rate of sales tax from 17 percent to a single digit in consultation with international donor agencies. The involvement of the lenders in the financial and policy matters of the country indicates a bitter reality that how far this nation is independent in its decision-making. According to the business community, the imposition of sales tax is a trap to steal away
their profit in legal manners and a hindrance in the growth of the country’s exports. The imposition of sales tax at 2 percent on exports was a bad decision of the PPP government, but the PML-N government made it worse despite opposing the step at the initial stage. The world statistics show that the cost of doing business is rising in Pakistan, as irrational steps have adversely affected the country’s exports, which have declined by 13.42 percent in the first quarter of the current fiscal year. According to the world exports statistics, Bangladesh exports have grown by five percent and Vietnam by 9.20 percent during the same period. The gov-
ernment had made calls claims that it would bring the exports to $50 billion after getting concessions from the European Union, but it could not compete even Bangladesh and Vietnam on the export front. It seems the ruling elite is working on a specific agenda to halt the increase of export volume to benefit its coteries as overall exports showed a decline of 5 percent during the last fiscal year. Apart from imposition of hefty sales tax, high tariff of gas and electricity has increased the cost of production, making it difficult for the Pakistani exporters to compete in the world market. According to an official of a business organization, the government has blocked the huge liq-
uidity of the exporters under sales tax refund, DLTL and customs rebate claims. He blamed the government for misusing the tax money on day to day expenses at the cost of national economy. At a time the government was unable to refund 2 percent sales tax, how it will refund when it is increased to 50 percent is a million dollar question. The tax money is public money and it requires to be used on public welfare. Trade and industry are the main sources of income and if business is affected, the generation of money will be affected. The government must come with concrete measures to salvage the industry from collapse.
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Govt imports 200 city buses for public transport GHANA: Some 200 specially-designed city buses will begin services in Accra to ease the city’s poor transport system, President John Mahama has disclosed. The buses are expected to begin operations by commuting passengers from various locations in the city from December. President Mahama, who was speaking in Accra as part of his ‘Transforming Ghana, Changing Lives’ tour on Monday November 16, indicated that the buses have already arrived in Ghana and are stationed at the State House. “We lack an effective public transport. In every city that I have travelled to abroad, there is a private transport provided by taxi drivers, mini buses and all that, but there is also public transport. So, we are introducing a new bus system.
LccI vows to support govt on kalabagh issue ising population graph can give birth to severe food security challenges in near future therefore we have to build kalabagh Dam at any cost as it would bring huge part of land under cultivation which is currently lying idle due to lack of water. In a statement issued here, the LCCI president Sheikh Muhammad Arshad, SVP Almas Haider and vice president Nasir Saeed said that it is a matter of concern that almost 9
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million hectors of fertile land is not being cultivated due to unavailability of water. They said that Pakistan needs grow to feed its population and only solution of this challenge is Kalabagh dam. They suggested to the governments not to take any pressure on Kalabagh Dam as people talking against this mega project are not well wishers of the Pakistan and actually are interpreting the sentiments of anti-Pakistan elements. They said that being an agrarian economy, Pakistan cannot afford to waste huge amount of water resources which are depleting fast. Shortage of water has not only caused undue damage to the agriculture sector but the manufacturing sector as well. The LCCI president Sheikh Muhammad Arshad said that the nation cannot waste any more time therefore the government should pave way for early construction of Kalabagh dam which is the only solution of water and electricity shortage. He said that our economy is based on agriculture sector which cannot survive without sufficient water resources. He said that we are already suffering and further delay in the construction of Kalabagh dam would hit us hard. —CB Report
Saturday November 21, 2015
Chambers
traders call for repair of broken roads to facilitate business activities T
ISLAMABAD
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he local industrialists in a meeting at Islamabad Chamber of Commerce and Industry have appealed to the Prime Minister of Pakistan to take notice of broken roads in industrial areas due to which business activities were badly suffering and issue instructions to CDA for their urgent repair to facilitate smooth growth of industrial activities. Atif Ikram Sheikh president, Sheikh Pervez Ahmed senior vice president and Sheikh Abdul Waheed vice president, Islamabad Chamber of Commerce and Industry said that main road of Islamabad Dry Port and industrial areas roads were in bad condition since long, but CDA was paying no attention to their repair due to which it was very difOicult for heavy vehicles to transport goods from/to these areas. They stressed that CDA should work on war footing basis to repair these roads and also restore the faulty street lights of these areas. They said government was earning millions of rupees from indus-
trial areas in terms of sales tax and excise duty but was paying no attention to develop their roads according to international standards due to which business community was facing great inconvenience. They said that the condition of roads in I-11 sector was also deplorable as these roads were dotted with potholes. They stressed
upon the CDA to pay urgent attention to these roads. They said the piped water was not reaching industrial and residential areas in I-9 and I-10 due to which the industrialists and residents were facing acute water shortage issue. They said CDA’s water tanks were also unable to provide water on time in these areas while
FccI for construction of kalabagh Dam
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FAISALABAD
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aisalabad Chamber of Commerce and Industry (FCCI) President Chaudhary Muhammad Nawaz said that construction of Kalabagh Dam and other dams to meet its future needs of water and electricity. He was addressing a seminar on “Best Water Management Practices for Textile and Sugar Industry.” The seminar was organized by World Wide Fund Pakistan (WWF-P) in collaboration with Cleaner Production Institute (CPI) at FCCI here today. He said that textile is the brand name of Pakistan and Faisalabad is dominated by the textile industry with a visible dominance of textile processing along with other up and down stream venders. He said that in present age each
process is Oinancially evaluated to make it economically proOitable. He said that if this water intensive process is completed with minimum water it will reduce the cost of doing business and hence we have to introduce such practices in this sector. He thanked WWF-P for selecting FCCI to hold this workshop which will not only beneOit the textile industry but also bring a qualitative improvement in the overall environment of the city. He assured that FCCI will continue to cooperate with world wide fund to organize similar awareness seminars on various topics of mutual interest. He also welcomed the proposal to set up WWF ofOice in Faisalabad and offered space for it on third Oloor of FCCI complex. Vice President FCCI Chaudhary Jameel Ahmed said that every year 30 million acre feet water is wasted to sea because of absence of enough reservoirs in the country.
He suggested that WWF-P might have collaborative arrangement with FCCI for promoting the sustainable water use and water stewardship for small and medium industries of Faisalabad. Dr. Masood Arshad, Director Climate, Energy and Water, WWF-Pakistan brieOly explained the aims and objectives of this organization and told that an ofOice of WWF will be established very soon in Faisalabad because of its importance in overall economy of Pakistan. He hoped that this proposed ofOice will become functional very soon and more seminars would be organized to save environment in this mega city. He said that water resources are depleting at a much faster pace and Pakistan is moving from water stressed country to water staved country and this situation has necessitated immediate measures to saving this precious natural asset.
the civic body was spending millions of rupees on their fuels. They said CDA was supplying bored water in I-8 sector due to which there was no issue of water shortage and stressed that CDA should make similar arrangements in water crisis-hit areas including I9 and I-10 sectors to ensure regular supply of water.
17-member chinese delegation visits LccI akistan is rapidly gaining the status of hub of trade and economic activities due to liberal economic policies of the present regime and days are not far when Pakistan will be top priority of the foreign investors. This was stated by the LCCI President Sheikh Muhammad Arshad while addressing a 17-member Chinese delegation, led by Executive Vice Chairman of Shandong Province Federation of Industry and Commerce Sun Ru Sheng, here at the Lahore Chamber of Commerce and Industry (LCCI). LCCI Vice President Nasir Saeed also spoke on the occasion while LCCI Executive Members were also present on the occasion. —CB Report
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South Korea Customs arrets cigarette smugglers Saturday November 21, 2015
World
NEW YORK: US crude oil fell below $40 a barrel for the first time since August as rising inventories in the world’s largest oil consumers heightened concerns over the deepening global glut. The US Energy Information Administration reported inventories rose by 252,000 barrels last week to 487.3m barrels, edging them closer towards the record level of 490.9m hit in April. High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/4a5ece3a-8e1f-11e5-8be43506bf20cc2b.html#ixzz3rsJuY6E6.
uS customs seizes over 5,000 pounds of marijuana
NEW YORK
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U
S Customs and Border Protection ofOicers seized more than 5,000 pounds of mari-
Ireland customs nabs smuggler with drugs smuggler has been arrested after €400,000 worth of drugs were been seized in Dublin. The joint operation between the Gardaí, Revenue and the Organised Crime Bureau found 20 kilos of herbal cannabis in Clondalkin. The drugs, which originated in Spain, were seized after they had been delivered here this afternoon. A 52-year-old man has been arrested and the investigation is ongoing this evening. The man is being held at Clondalkin Garda Station under the provisions of Section 2 Criminal Justice (Drug Trafficking) Act 1996. Meanwhile, As part of intelligence led operation targeting the sale and supply of controlled drugs in the Dublin area, Revenue’s Customs Service, the Garda Drugs and Organised Crime Bureau, and the Divisional Drugs.—CB Report
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juana during a drug stop at the Mexico border. OfOicers say the drugs are worth $2,539,700. OfOicers discovered the drugs after a man from Mexico tried entering through the Port of Nogales. The drugs were in six boxes that were being fronted as aircraft parts. OfOicers arrested Jaime Alfonso Valdez-Yocupicio. OfOicers seized the
entire shipment and referred Valdez to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Meanwhile, Federal agents investigating tips about people smuggling drugs onto the island took into custody four men who agents say were found at Smuggler’s Cove early Saturday with suitcases containing more than 200 pounds of a substance believed to be cocaine. The U.S. Drug Enforcement Administration lodged a criminal complaint in U.S. District Court on Monday against Jose Hodge, Gamalier Rohlsen-Arizmendi, Alejandro Marva-Romero and Jesus Burgos-Montanez, charging them with conspiracy to possess a controlled substance with intent to distribute and possession of cocaine powder with intent to distribute. None of the men claimed ownership of the suitcases, which were Oilled with 87 black, taped, brickshaped packages, according to an afOidavit supporting the criminal complaint Oiled by Aldemar Santos of the Drug Enforcement Administration.
police arrest man in wildlife smuggling case
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youth has been arrested by the Central Investigation Bureau from Srijananagar in Suryabinayak Muncipality-1 of Bhaktapur on Sunday with the possession of an alive turtle and body parts of endangered species. The arrestee has been identiOied as Anish Waiba (21) of Mahadevisthan VDC -3 of Sindhuli district. Police arrested him after receiving a tip-off about the transaction of body parts of various endangered species. Police seized a yellow-coloured alive
turtle, a deer leg along with paws, claws of a wild bird and some bones of protected species. Police have sent Waiba to the Bhaktapur District Forest OfOice, Sanothimi, for further investigation. Police informed that the alive turtle has been sent to the Central Zoo in Jawalakhel. Meanwhile, Two persons from Nepal were arrested and four kg of charas worth Rs 4 lakh in the international market was seized from them here, a Shasastra Seema Bal (SSB) ofOicial said today.—CB Report
customs recovers $18,000 in cash, cocaine
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DUNEDIN
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oncern over Dunedin students importing drugs via the dark web will prompt an Orientation Week warning from authorities. Police and Customs ofOicers raided multiple properties in Dunedin, resulting in two students appearing in court on charges of importing and supplying MDMA. A search warrant on a property revealed $18,000 in cash, along with cocaine, ecstasy, LSD, and prescription medicine. The students, who have interim name suppression, bought drugs over the dark web. It was one of several similar cases in the city during 2015 and “Dunedin is our biggest problem at the moment”, Kirk McPherson, chief Customs investigations ofOicer, said “I am very concerned it is tip of the iceberg stuff, some are obviously getting through because they are still doing it.” In an effort to crack down on the growing problem, Customs would have a visi-
ble presence during the University of Otago Orientation Week, warning students of the danger of importing drugs over the internet. “They are playing Russian roulette, they think they are clever and are getting away with it, but how do they know. “Those guys thought they were getting away with it, now look at the consequences they are facing,” McPherson said. He declined to say whether more students were being monitored, but many cases involved drug importers being watched for months. “It is a lure for some people but it is unfortunate they are making money off some people off other people’s misery.” Cases dealt with by the courts included students who bought drugs over the dark web, which were sent to a New Zealand PO Box, a friend’s house, or even a vacant property. Detective Senior Sergeant Malcolm Inglis from the Southern District Organised Crime Team said police needed to change their strategy “because we don’t want to see these kids before the courts destroying their careers”.
three omanis arrested on charges of smuggling drugs
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hree Omanis were arrested on charges of smuggling drugs by the Directorate of Narcotics Control in North Al Batinah. A source from the ROP said that ofOicers received information about a possible smuggle attempt by way of sea near Al Aqra area in Shinas Governorate. The suspects were arrested with 9 kilograms of hashish and 2 rolls of opium in their possession. Legal procedures have been taken and the suspects have been referred to the public prosecution to complete procedures.
Meanwhile,Customs ofOicers at the Muscat International Airport have foiled several attempts to smuggle narcotics into the Sultanate. Police said the smugglers conceal the contraband in different ways to render detection difOicult, but ofOicers at the airport had managed to seize 220 Tramadol capsules and 443 Clonazepam tablets. In another case, an Asian was arrested for attempting to smuggle 633 grams of marijuana. Police said the customs ofOicers had found the narcotics while checking the suspect’s suitcase. —CB Report
uS police seize 9 pounds of heroin worth $2m
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PATERSON
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arcotics detectives who stopped an SUV late in the afternoon in a busy neighborhood near Route 80 hardly expected the major haul of pure heroin they uncovered upon searching the vehicle Wednesday with the help of a
police dog. Detectives, working from a citizen’s tip about street-level drug dealing, conOiscated nearly nine pounds of uncut heroin Wednesday evening enough drugs to Oill about 600,000 of the glassine packets sold on the corners, according to Paterson police, who placed its value at about $2 million. “This was a surprise,” said Captain Troy Oswald, head of the police
department’s narcotics unit, when asked whether detectives expected the driver to be carrying such a large quantity of heroin. Police Director Jerry Speziale in a rare press conference on Thursday said authorities believe the heroin was headed to a local processing mill, where it would be packaged for street-level sales. But, citing the conOidentiality as the investigation con-
tinues, authorities would not say where they believe the driver picked up the heroin or exactly where he was delivering it. Gabriel Mercado, 35, of Paterson, who was driving the SUV when it was stopped, was charged with various narcotics offenses, police said. Police said the drugs in four separate kilogram packages were in a hidden compartment in the center.
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Solomons ports chief Frank Prendergast threatened over reforms LONDON: The Solomon Islands police chief Frank Prendergast says he is aware of threats against the Ports Authority CEO and his senior managers. The Ports Authority chief Colin Yow says the threats and demand for compensation follow the recent sacking of four Ports Authority workers. Mr Yow says workers detest a number of reforms he has introduced which could lead to job losses. He says the reforms will weed out corrupt practices which have been going on for decades.
Dhabi ports sees 36% jump in container volumes during first 10 month of 2015 bu Dhabi Ports, the master developer, operator and manager of ports and industrial zones in the emirate, has said it has seen a surge in cargo volumes during the first ten months of 2015 compared to the same period last year. Container volumes increased by 36 percent at the Khalifa Port Container Terminal, which is operated by Abu Dhabi Terminals, a statement said. The terminal moved 1,204,993 TEUs (twenty foot equivalent units), up from 889,165 TEUs in the year-earlier period. The busiest single month in this year was October, when the port handled 157,673 TEUs, the statement added Roll-on-roll-off (RORO) traffic saw 29 percent rise with 110,831 vehicles, up from 85,835 vehicles last year. In 2015, all RORO operations were transferred to Khalifa Port from Zayed Port to meet the growing demand from the automotive sector in the UAE. This transition to Khalifa Port contributed to the upswing in volumes, the statement said. —CB Report
Ports & Shipping
Saturday November 21, 2015
uScg investigates foreign ship for environmental violations
wenty-seven ships laden with assorted foods, general cargoes and petroleum products are expected to arrive at Lagos ports from Nov. 18 to Nov. 30, the Nigerian Ports Authority (NPA) said. The NPA made this known in its daily ‘Shipping Position’ made available to newsmen in Lagos. It indicated that 14 of the expected ships would sail in with containers, while general cargoes would arrive in three other ships. The NPA said food items including bulk malt, buckwheat, bulk sugar, rice and crude palm oil would be brought in seven ships while the remaining three ships would sail in with petrol. —CB Report
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nterisland cargo shipments between Honolulu and Hawaii’s six Neighbor Islands increased by 1.5 percent in the third quarter of this year, compared to the third quarter last year, according to Young Brothers, Ltd. Four of the Neighbor Islands saw an increase in cargo volumes, Kauai led the pack with a 4.5 percent increase, while Kawaihae on the Big Island was up 3.4 percent, Maui jumped 1.6 percent and Molokai went up 1.2 percent. The increase in the third quarter was primarily from vehicle shipments, beverage shipments and construction materials. However, oddly, shipment of construction equipment was weak. Elsewhere, Hilo and Lanai, did not do as well as their neighbors as they dropped 2.9 percent and 5.3 percent respectively for their quarterly shipments, compared to the previous year. Also in the third quarter the statewide agricultural volume fell 5.4 percent from the same period last year. Young Brothers said this is most likely because of the heavy rains, which have affected crops. The drop in the sector hurt the Big Island the worst as it produces most of the state’s agricultural goods. Hilo saw a 19.8 percent decrease in its outbound agricultural cargo this quarter from the same period last year. —CB Report
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27 ships to arrive Lagos ports with foods, petroleum products
hawaii interisland cargo shipments increase by 1.5% in Q3 of 2015
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n oceangoing freighter is being held in the Duluth-Superior port as the U.S. Coast Guard investigates the foreign ship for possible environmental violations. “Due to the ongoing investigation, the Liberian-Olagged vessel and the crew are prohibited from leaving Duluth until cleared by U.S. Customs and Border Protection,” said Coast Guard Spokesman Christopher Yaw. The ship named the Cornelia and
her crew anchored in the Twin Ports on Halloween. Yaw said neither the ship nor the crew pose any threat to public safety. No speciOics were provided on the nature of the violations. He said the details of their investigation won’t be released until it’s complete. Yaw also said it’s unknown whether the crew may go ashore during the investigation and when the review will wrap up. Meanwhile, South Florida’s seaports mostly enjoyed smooth sailing in the justended budget year.Port Everglades topped its record in container trade but hosted fewer multiday cruise passengers. PortMiami hit new highs in cargo and cruises, while business at Port of Palm Beach was mainly Olat.
Gains for the year ended Sept. 30 came from a strengthening U.S. economy, as well as population growth and a rise in tourism in South Florida, among other factors, ofOicials said. At Port Everglades in Fort Lauderdale, operating revenues rose slightly to $153.3 million, as cargo volumes grew. South Florida’s busiest seaport for freight handled 5 percent more containers in Oiscal 2015 than a year earlier at a record 1.06 million TEUs, or 20-foot trailer equivalent units, ofOicials said. Gains came from new and expanded cargo services and from the Oirst full year of a ship-to-train transfer facility opened by Florida East Coast Railway, said Port Everglades CEO Steven Cernak.
Sc ports Authority has great impact on Midlands
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COLUMBIA
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hough the port in Charleston is 100 miles from Columbia, its impact is still very big in the Midlands, according to a new study. University of South Carolina Research Economist Dr. Joseph Von Nessen found that the Midlands accounts for 25% of the state port authority’s impact. “In Columbia we see more of a volume perspective, we see a lot of
small businesses using the port and when it aggregates up, we see this major impact of close to $14 billion a year.” said Dr. Von Nessen. Dr. Von Nessen presented the Oindings at the Michelin Plant in Lexington. South Carolina Port Authority President and CEO Jim Newsome says despite being inland, one out of every 12 jobs in the midlands is affected by the ports. “We think that’s pretty consistent throughout the state and that’s why we’re a state port. We’re not just the port of Charleston, we’re
South Carolina ports,” said Newsome. “We have impact across the state and I think the state is set up to be very successful because businesses want to locate in the global sourcing and global manufacturing near ports.” Gwen Rawls, who owns Gwen Rawls Italian Shoes in the Trenholm Plaza in Columbia, has been helping women in the Midlands Oind the perfect shoe. Rows of heels and boots from Italy and Portugal line the shelves of her store, and Rawls says the best way to get them is by
boat. “I couldn’t imagine not having the port here in Charleston because if I had to get my goods from New York or from Florida it would be way too costly for me,” Rawls said. “I’m a small business, and as a small business owner I have very limited resources as it relates to employees.” She says it’s much more cost effective for small businesses to place orders to be brought in by container rather than by plane or truck. Once the ship docks, she says it’s a quick process from the boat to the store.
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Customs Internal Audit to scrutinise record of Multan Customs MULTAN: The Customs Directorate of Internal Audit has directed inspection team to complete audit of Model of Customs Collectorate Multan until November 27, 2015. The record of Multan Customs for fiscal year 2013-14, 2014-15 and current year will be scrutinised. Director Muhammad Akram Chaudhry has nominated three officials of Internal Audit to inspect record of Multan under the audit plan. The nominated officers are Assistant Director Saima Zaib Butt, Superintendent Nasir Tarar and Auditor Naeem Haider.
Saturday, November 21, 2015
CUSTOMS BULLETIN
Intelligence wing starts reconnaissance of elite fashion designers in karachi KARACHI AFtAB chANNA
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he Federal Board of Revenue (FBR), intelligence arm, has started keeping an eye on the elite fashion designers operating in the port city to increase tax net, Customs Today has learnt. The sources told Customs Today that the FBR’s intelligence wing has started reconnaissance of the well reputed and famous fashions designers in the city. In this regard, various teams have been constituted to keep vigil on the fashion designers particularly at Tariq Road, Bahadurabad, DHA’s Zamama Street, and in major shopping plaza, sources added. According to sources, the intelligence authorities recently raided various outlets of Bonanza Garments and recovered millions of rupees taxes. Besides, the FBR authorities had also devised a policy to run after the fashion designers who are allegedly involved in suppression of sales tax, sources concluded. Meanwhile, The Directorate General Customs Intelligence and Investigation has seized contraband Iran origin 31,900 liters of diesel from a godown on Tuesday. According to the details,
the staff of anti-smuggling under supervision of Assistant Director Kaleemullah has intensiOied the crack-
down on the smugglers and seized contraband 31,900 liters of Iranian diesel from a godown situated at
Northern Bypass near Lucky Toll Plaza, Karachi, impounded two oil tankers and four non-duty paid vehi-
cles in a number of recent anti smuggling operations during last week, approximately valuing Rs 10 Millions.
Multan Ir-Intelligence raids city hospital due to tax evasion MULTAN
IMrAN ALI
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irectorate of Intelligence and Investigation (Inland Revenue) Multan team has raided renowned hospital of Multan and seized their ofOice record for their alleged tax evasion of millions of rupees, it is learnt. According to the details gathered by Customs Today, Directorate General of Intelligence and
Investigation (Inland Revenue) of Multan received credible information regarding evasion of income tax by City Hospital located in Bosan Road Gulgasht Multan. The initial Oindings of the record disclosed that the registered City Hospital Multan has allegedly misdeclared the tax authorities about their actual income. City Hospital owners had also concealed other details of its medical facilities provided with the clear intent to conceal income from those premises. The team obtained search warrants from the area magistrate under section 40 of the Sales Tax Act
1990 read with the relevant provisions and the raid was conducted at the aforesaid City Hospital premises after fulOilling all the legal formalities. All the record electronically and paper record available at the City Hospital Multan premises was taken into custody including CPUs, laptops, hard disks, gate passes, order books, ledgers, day books, utility bills, quotation Oiles/books etc. Preliminary investigation in the matter and the examination of the record retrieved from City Hospital Multan premises shown that they were probably involved in the
huge tax evasion of millions of rupees. The directorate of Intelligence and Investigation (Inland Revenue) Multan was constituted by Director Muhammad Akram Khan comprising team members Irfan Khan Tareen and others to conduct raid at the City Hospital premises of the registered person in Multan to take the relevant record into custody. Director Akram Khan has raided along with its team members in City Hospital Multan for getting tax record for recovery of evaded income tax amount earned by hospital administration and said Hospital is
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one of the expansive hospitals for treatment as they were charging more than like Oive star restaurants. Director Muhammad Akram Khan is trying to implement existing tax laws strongly through law enforcement against tax evaders in the jurisdiction. Through this effort of record measures from directorate of Intelligence and Investigation (Inland Revenue) Multan tax evaders will start paying full taxes. Directorate of Intelligence and Investigation (Inland Revenue) Multan ofOice FBR has taken this action under section 175 of the Income Tax Ordinance 2001.