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Daily

Vol 1 Issue No. 245

Karachi, Wed November 25, 2015

KARACHI

AFTAB CHANNA

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he Pakistan Customs along with Pakistan Rangers (Sindh) would soon launch an operation in Karachi markets to control smuggling of goods and arrest those facilitating the illegal trade, it is learnt. It is recalled here that Customs Today Siled a story that Pakistan Customs took into conSidence the traders under aegis of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and Karachi

Price Rs. 14.00

Chamber of Commerce and Industry (KCCI) before launching any operation against the traders allegedly involved in sale/facilitating smuggled goods of Afghan Transit Trade. According to sources, Chief Collector Enforcement South Zahid Khokhar had held a various meetings with Director General Rangers and chalked out a strategy to bust those involved in illicit trade. Usually, the Pakistan Customs have the support of law enforcement agencies whenever and wherever is required, however, this time the personnel of rangers and police would accompany the customs authorities in raiding any shop/market, sources added.

Pak, China Electronic Data Exchange System to be operational by July 1

MDPT to share findings of missing tyres issue with Additional Collector

Russian investors ready to invest in Pak energy and automobile sectors

Sialkot ASO impounds smuggled cloth worth Rs 7m on Collector Reza’s orders

LCCI demands revamping of loss-making PSEs

The Customs authorities of Pakistan and China have agreed to establish EDES | See pAge 02 |

Multan Dry Port Trust have called an emergent meeting of the board | See pAge 03 |

A delegation of Russian businessmen led by Ildar Mingaleev | See pAge 04 |

The ASO has seized cloth in diﬀerent operations worth Rs 7 million. | See pAge 12 |

LCCI demanded of the govt to run all PSEs under Public-Private partnership | See pAge 09 |

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Bio Amla owner flees court after rejection of bail plea Wednesday, November 25, 2015

National

LAHORE: Director of Bio Amla Cosmetics successfully ran away from the court premises afterCustoms cCourt rejected his bail plea. According to details available to Customs Today, Kashif Zia, the owner of Bio Amla Shampoo Company, is involved in tax evasion of Rs 1.3 million. Customs team registered a case against him last year when they found him involved in tax evasion. He was showing his sales record very low as compared to the original sales. In this regard, he was brought to the court by the Federal Board of Revenue Lahore authorities.

pak, China electronic Data exchange System to be operational by July 1

KARACHI

ISLAMABAD

AFTAB CHANNA

m ArSHAD

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he Model Customs Collectorate Appraisement West Laboratory has been facing acute shortage of staff for a long time as only 24 officials are working at the laboratory against its sanctioned strength of 80 people, Customs Today has learnt. The sources told Customs Today that the Customs Appraisement West Laboratory had been working below the strength, causing delaying in laboratory tests of the importers referred by the Customs Collectorate West. Moreover, there are air-conditioners installed however majority of them are out of order and the officials can been seen sitting in front of stand fans, sources added. “There are only ten chemists/chemical examiners at the MCC West Laboratory out of them one was transferred to Lahore, while two were transferred to Port Muhammad Bin Qasim, leaving behind only seven chemical examiners to do the job”, sources informed. To a question, the sources elaborated that there was a ban on new recruitments in the FBR since long that resulted in shortage of staff, adding that Collector Appraisement West Jawwad Uwais Agha has visited the Laboratory and assured that things would be put in order soon.

he Customs authorities of Pakistan and China have agreed to establish Electronic Data Exchange System (EDES) and make it operational from July 1, 2016. “The lack of instant electronic data exchange and sharing of swift sharing of information between the two customs authorities has provided space to corrupt elements who mint-money through mis-declaration and under-invoicing,” a well-placed ofSicial source at the Federal Board of Revenue (FBR) told this Customs Today. The source said that the problem not only existed in case of Pak-China trade but in several other countries such as in case of trade with the Central Asian Republics. The discrepancies in data have often led Pakistani negotiators into awkward situation. In this regard, the source said that both Pakistani and Chinese authorities held a meeting to review progress of negotiations on the implementation of the system was reviewed in the 6th meeting of the China-Pakistan Free Trade Agreement II (CPFTA-II). Besides, ofSicials from FBR, Ministry of Commerce was also well represented in the meeting because Additional Secretary Ministry of

Customs Appraisement-west Lab faces shortage of staﬀ

Commerce, Rubina Ather forcefully advocated Pakistani stance before the Chinese delegation. The statistics available with the two sides regarding bilateral trade differ hugely due to which the two sides have taken divergent views on several issues arising in the CPFTA meet-

ings. Recently, the Prime Minister Nawaz Sharif took note of the issue and directed the Minister for Commerce, Khurram Dastgir Khan to work with the Federal Board of Revenue and chalk out systems to remove these loopholes in the existing systems. The negotiators of CPFTA-II

were convinced that the progress on the EDE is satisfactory and the project will be operational by the agreed deadline. Pakistani side was of the view that the system should be expanded to the whole spectrum of bilateral trade as soon as possible to improve the veracity of trade Sigures.

pilferage of cargo: Customs Court grants bail to three suspects KARACHI

muHAmmAD YouSAF www.customsbulletin.com

he Special Court of Customs Taxation and Anti-Smuggling has admitted the bail pleas of three suspects who are behind bars in a case pertaining to the pilferage of Lahore-bound cargo that contained goods worth Rs 304 mil-

lion. Judge Syed Faiz Rasool Rashdi approved the bail for Munawar Hussain, Shahid and Imran with surety of Rs 200,000 each. Advocate Dilkhuram Shaheen moved the bail applications on behalf of the suspects, requesting the court to order their release. According to the prosecution, Pakistan Customs’ Anti-Smuggling Organization (ASO) raided a godown in the city’s Site area and seized a huge quantity of imported goods. The seized goods included 27,217 mobile phones of assorted

brands, 1,695 pieces assorted tablets notepad, 46,979 pieces of contact lenses, 2,007 perfumes, 214 LED TVs, 10,060 kilogram pencil erasers, 73 washing machines, 122 pieces of DVD players, 182 dry irons, 750 Samsung mobile phone batteries, 15 refrigerators, 196,000 feather blades 196,000, 172,000 cotton stick. A transshipment cargo in a container bearing No EITU-1135555 was taken from the port area under transshipment permit (TP) to be cleared at Lahore Dry Port.

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IHC bars RTO from collecting Rs 36m tax from First Security Ltd ISLAMABAD: Islamabad High Court (IHC) on Monday has stayed recovery of Rs 36 million income taxes by Regional Tax Office-FBR field office collecting taxes. While hearing a petition contesting demand of tax collection, Justice Aamer Farooq of IHC barred tax authorities to demand Rs 36 million income taxes from the appellant, Fist Security Private Limited. The Fist Security Private Limited had filed the petition seeking stay on the matter against deputy commissioner Inland Revenue and others. The Fist Security Private Limited, through its counsel, Hafiz Muhammad Adrees, had pleaded argued for contesting RTO demands of tax.

pakistan-Afghan JeC to discuss all economic matters

Wednesday November 25, 2015

National

mDpT to share findings of missing tyres issue with additional collector

ISLAMABAD

m ArSHAD

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two-day session of the PakAfghan Joint Economic Commission started on Monday and will conclude on Tuesday. The JEC is expected to cover all matters, including economy, trade, bilateral issues, highways and railways projects, scholarship schemes for Afghan students as well as potential joint ventures in various other sectors. In this regard, a high level Afghan delegation has arrived here in the federal capital to take part in the session. It will be the 10th session of the Pak-Afghan Economic Commission, which was scheduled to be held in August this year.

‘punjab govt to introduce health insurance scheme’ LAHORE

m imrAN meHAr

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rovincial Minister for Finance Dr Ayesha Ghaus Pasha has said that Punjab Chief Minister Shahbaz Sharif, while taking notice of non-provision of timely medical facilities to pregnant women, has decided to introduce health insurance scheme. Under this scheme, free facilities will be provided to deserving patients, especially pregnant women for admission, delivery, treatment of newly born babies, emergency operations, general medical facilities and special OBDs facilities in public and government hospitals. She expressed these views while presiding over a joint meeting of Healthcare Commission and insurance companies. The aim of the meeting was to ask for bids from insurance companies which was attended by Secretary Health and representatives of Adam Jee, Jubliee, Askari, State Life and EFU Health Insurance company.

MULTAN

imrAN ALi

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ultan Dry Port Trust have called an emergent meeting of the board of trustees to discuss missing of old and used tyres. According to details, MDPT have invited Additional Collector Ghulam Mustafa in the meeting of Board of Trustees to be held on 24th November. Board of Trustees and Additional Collector will discuss and decided modality of investigation of the incident of almost 1500 tyres from store rooms of Dry Port Trust. The Model of Customs Collectorate Multan have lodged FIRs against three employees of the trust for pilfering almost 1500 tyres of various new and used brands .AntiSmuggling Organization Multan had apprehended tyres and stacked in the open area of MDPT under their control since November 2014. It was revealed that a huge number of tyres were missing when the owner reached there for the release of apprehended tyres. The concerned party approached Collector MCC for complaining about their missing tyres from Dry Port Trust during their custody and then Collector directed ASO to lodge FIR against culprits. Anti-Smuggling Organization Multan have nominated three employees of the trust after investigation. Chairman and General Manager of the MDPT had requested Collector for

joint investigation in the missing tyres and in the light of joint investigation Customs will take any action. Customs Collectorate Multan is trying to resolve and settle the case of missing tyres by involving MDPT. Now MDPT top management including their board of trustees chairman and general manager will discuss the details of Sindings with Additional Collector Ghulam Mustafa about missing tyres from MDPT. Meanwhile, Assistant Collector Multan Dry Port

Board of Trustees and Additional Collector will discuss and decided modality of investigation of the incident of almost 1500 tyres from store rooms of Dry port Trust

Appraisement-west Lab needs assistant collector KARACHI

AFTAB CHANNA

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he Model Customs Collectorate Appraisement West Laboratory is working without a full time Assistant Collector since long, while the look after charge is time and again allotted to the assistant collector and deputy

collectors with multiple job assignments, it is learnt. The sources told Customs Today that the Customs Appraisement West Laboratory was working without a full Sledge assistant collector since long, causing serious problems in disposal of the cases for chemical examinations etc. According to rules, sources opined that the fresher assistant collector cannot be posted at the Customs Laboratory, and only one who has Sive years experience is posted

here. And, interestingly, when an assistant collector achieves Sive years of experience, then the said ofSicer do not wish to be posted the customs laboratory, sources claimed. At present, Assistant Collector Arsalan Majeed Rana of Group-VII (86-89), has been given the charge to look into the affairs of Customs Laboratory, besides his other assignments including One Customs Group, AC Level Adjudication, Group-II (Ch. 28-38), Recovery, Audits (Internal and External).

Faizan Badar has strictly directed Multan Dry Port Trust authorities to make sufSicient arrangements for shifting export on WeBOC system. The Collector Multan has also given a deadline to MDPT for adopting export clearance on WeBOC system after the implementation of electronically issued E-form for export. The MDPT is allegedly using delaying tactics and it has not taken any initiative for transferring of export from One Customs to WeBOC system.

Appellate Tribunal’s chief reaches Lahore ustoms Appellate Tribunal Chairman Ghulam Murtaza Bhatti on Monday arrived in Lahore after hearing cases at Tribunal’s headquarters in Islamabad. According to Customs Appellate Tribunal’s oﬃcials, the chairman would stay in Lahore for a week. He would chair division and single benches in Punjab’s capital, they said.

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Textile exports slump by 10.7pc in October Wednesday, November 25, 2015

Business

ISLAMABAD: Pakistan’s textile exports plunged by over 10 per cent in October from a year ago mainly due to continuous energy shortage, high cost of production and declining prices globally. Country’s textile exports were $1.05 billion in October 2015 as against $1.18 billion of the same month of last year, down 10.69 percent, according to the latest ﬁgures of the Pakistan Bureau of Statistics (PBS). Textile industry representatives said that the exports plunge was due to the fact that the government had failed to support producers. “We are almost out of the business in international market due to the higher prices of electricity.

kSe loses another 161points on profit-taking KARACHI

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he market started on a positive note on Tuesday with the KSE-100 index making initial gains of 134 points, however, the investors changed their positions after midday. The index Sinally ended down by 161.32.68 points to settle at 33,571.59. The market recorded the highest trading level of 33872.33 points and lowest level of 33567.09

CDA to install LeD streetlights ISLAMABAD

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points, with the total volume of 219,295,465 shares, having 10,213,910,844. As many as 360 companies were active; of which 93 advanced, 240 declined and 27 re-

russian investors ready to invest in pak energy and automobile sectors

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he CDA has decided to replace 50% of conventional streetlights with LED lights with a cost of Rs200 million. A CDA oﬃcial on Monday said that initially 2,000 lights would be installed at major avenues of the city. CDA Chairman on Monday chaired a meeting to give in principle approval to the project. Member Administration and Estate Amer Ali Ahmed, Member Engineering Shahid Sohail, the DG of Electrical and Maintenance Wing and oﬃcers.

mained unchanged. Oil & gas marketing companies was the top traded sector with total traded volume of 27,318,250 shares. It was followed by power generation & distribution

with a total traded volume of 20,084,000 shares. The three top traded companies were K-Electric Ltd. with a volume of 18,155,000 and price per share of 7.50 (-0.11), TRG Pak Ltd with a volume 16,294,500 of price per share of 38.83 (0.12), Sui South Gas with a volume 15,109,000 of price per share of 41.24 (-0.69). The top three advancers were Ferozsons (Lab) with price per share 946.35 (19.47) and volume of 140,850 shares, Ghandhara Ind. with price per share of 402.02 (19.14) and volume of 29,000 shares, and SanoSiAventis share of 650.00 (15.45) and volume of 650 shares.

ISLAMABAD

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delegation of Russian businessmen led by Ildar Mingaleev, Deputy Minister, Ministry of Industry and Trade of the Republic of Tatarstan visited Islamabad Chamber of Commerce and Industry and showed keen interest to invest in Pakistan’s energy and automobile sectors.

Ildar Mingaleev said that Russian delegation has held negotiations with Pakistan Petroleum Limited and OGDCL to explore joint ventures in oil and gas exploration Sield. He said Russia’s largest energy company Gazprom was interested in supplying LNG to Pakistan while RT Global Resources, part of Russian State Corporation Rostec will construct the 1100 Km long North South gas pipeline in Pakistan by 2020 to link LNG terminals from Karachi to Lahore. He said the Russian investors were also interested to invest and enter into joint ventures in Pakistan

to manufacture heavy duty trucks, passenger cars, other specialised vehicles, shipbuilding, manufacturing of gas turbines and compressors. He said Russia has established Free Economic Zones with tangible tax beneSits to foreign investors and said that Pakistani investors should set up textiles units in Russia to capture huge market of the region. He said Trade Development Authority of Pakistan was planning to take a business delegation to Russia and ICCI members should become part of this delegation to explore business opportunities in Russia.

Bankers are still paid too much: Deutsche Bank Ceo FRANKFURT

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ore than seven years after the financial crisis, bankers in general are still paid too much, Deutsche Bank (DBKGn.DE) Chief Executive John Cryan told an academic conference on Monday. “Compensation is still too high,” Cryan told the conference ethics and culture in the financial sector at Goethe University. “We’ve just paid people too much across the board.” E-transactions: IT ministry reviews e-payment gateway While many people in the banking sector were working to improve their performance each day, there were still some who believed they had a right to outsized compensation even when performance was negative from the client’s viewpoint. Banks needed to improve governance and controls and take away the incentive to act unilaterally, he said. Bankers ought to be paid less and should have variable pay paid out over a longer period of time – and clawed back if needed. “I’m 100 percent in favour of clawback,” said Cryan, who took the helm of Germany‘s biggest lender in July following the departure of Anshu Jain.

rs 204.831 billion released for diﬀerent projects ISLAMABAD

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he federal government has released more than Rs204.831 billion for different social sector developmental projects under Public Sector Development Programme (PSDP) 2015-16 as against the total allocation of Rs 700 billion. According to latest data released by the Planning Commission of Pak-

istan, government has released Rs 18.691 billion for Higher Education Commission as compared to the total allocation of Rs 31.100 billion for the year 2015-16. Under development programme, Rs 27.783 billion has been released for infrastructure development projects under National Highway Authority (NHA) as compared to the total allocation of Rs. 159 billion for FY 2015-16. Meanwhile, a sum of Rs.33.484 billion has released for Water and

Power Development Authority (WAPDA) power sector projects as against the total allocation of Rs 112.288 billion for current Siscal year to overcome the shortage of energy in the country. So far, the government has released Rs 5.917 billion for different projects of Pakistan Atomic Energy Commission as against the total allocation of Rs 30.408 billion for Siscal year 201516. Meanwhile, a sum of Rs 7.810 billion has released for uplift and

improvement of the services of Railways Division as government had earmarked Rs 41 billion for the development of Pakistan Railways. Under PSDP 2015-16, a sum of Rs 6.865 billion has released for different projects of National Health Services, Regulations and Coordination Division as against Rs 20.701 billion earmarked for current Siscal year. The government has released Rs. 579.212 million for National Food Security and Research Division, Rs

420 million for Science and Technical research Division. Where as a sum of Rs 5.597 billion for Water and Power Division (water sector) projects to strengthen the water storage capacity for irrigating purposes as well as to produce hydro power generation. Under PSDP, 2015-16 an amount of Rs 2.413 billion has released for Azad Jammu and Kashmir block and other projects as against the total allocation of Rs 13.300 billion.

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M/s Islamabad Feed Private Limited has been issued a show-cause notice by the Customs Adjudication-II for evading taxes and duties of Rs 16.49 million on import of silos. As per details, the importer M/s Islamabad Feeds imported silos from the United States and availed concession of 8th Schedule (sales tax) and paid reduced rates of sales tax at 5 percent on the import of “Grain storage silos with all standard accessories” under PCT Heading 9406.0030. The 8th Schedule (sales tax) extends beneSits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the Silos are for storage purposes and do not qualiSies the deSinition of machinery and equipments, sources added. Therefore, the sources said that the beneSits of reduced rate of sales tax was not admissible in this case and was chargeable to sales tax at 17 percent. Collector Adjudication-II has issued a show cause notice to the im-

porter directing the importer to either justify their position or pay off the short-paid levy at the earliest. Meanwhile, The Customs’ Collectorate of Adjudication-II has served a show-cause notice on M/s Ghani Hilal Feed Mill Lahore for allegedly evading Rs 7.19 million tax on import of silos classiSiable under PCT Heading 9406.0030, it is learnt. The evasion of sales tax was found during the scrutiny of import data pertaining to silos by the Post Clearance Audit. The importer M/s Ghani Hilal Feed Mill (Pvt) Limited had imported silos from China and availed concession of 8th Schedule (Sales Tax) and paid reduced rates of sales tax at 5 percent on the import of “grain storage silos with all standard accessories” under PCT Heading 9406.0030. The 8th Schedule (Sales Tax) extends beneSits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the silos are for storage purposes and do not qualiSies the deSinition of machinery and equipments, sources added. Therefore, the sources said that the beneSits of reduced rate of Sales Tax

was not admissible in this case and was chargeable to Sales Tax at 17 percent. After detection of the contravention, the Directorate of PCA has forwarded the report to the respective collectorates and the Customs Adjudication for initiating adjudication proceedings and recovery thereof, the sources further informed.

sales tax e l u d e h c The 8th S fits of reduced bene extends les tax to t” a s f o e t a r uipmen q e d n a y er “machin t of grain n e m p o l ge for deve and stora g n i l d n a h only. facilities

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Wednesday, November 25, 2015

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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

utilisation of black money

orruption is a legacy of the colonial era spanning over a couple of centuries in this land and it is one of the major hurdles in the way of development. Unfortunately, every government has tried to curb corruption, but it always took action against corrupt elements rather than corruption. Corruption is a habit, a custom or an illegal system which has penetrated in every institution of the country. In other words, corruption has been institutionalized. The best way to stop corruption is to develop a mechanism to stop usage of the illegal money. The lacunae in laws to curb money laundering and to purchase real estate give a safe passage to the corrupt elements to use their illegal money and walk free. The government must plug the loopholes in the law and prevailing official system before assailing corrupt elements. However, the policymakers only concentrate on the collection of revenue rather than developing a mechanism to not only increase government revenues, but also streamline the tax collection affairs. According to news reports, the federal and the provincial governments are going to adopt a new mechanism to classify the immovable property in different categories and revise and update its value every year. The Federal Board of Revenue has already endorsed a proposal of the Tax Reform Commission on the valuation and revaluation of the immovable property. The new mechanism is aimed at stopping the tendency of undervaluation of the property which is in practice to avoid payment of duties and taxes. However, the government is considering enacting a law to provide another mechanism to confiscate a property held by unnamed owners and transaction of money in the name of unidentified recipients. A draft of Benami Transaction (Prohibition) Act 2015 has already been prepared for the purpose. It is important to note that unnamed transaction is an arrangement in which a property is held by a person on behalf of another person who has paid for it or a transaction is made for a property in a fictitious name or the owner of the property denies to knowledge the ownership of the property. It is a good omen that the government is on the way to stop the usage of the corrupt money.

Challenges to economy and resilience T

LAHORE

Dr AFTAB AFZAL

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he country has been facing various challenges, including threatened security and sagging economy, due to some unavoidable factors at home and conspiracies by external forces, especially by India against the state of Pakistan. There is a need to implement writ of the government in various regions of the country where insurgency is on the rise and smuggling of goods and drugs is threatening security and economy of the country. According to a report of the Legatum Institute, Pakistan has shown remarkable resilience against terrorism and will mud-

dle through the myriads of vexing challenges in future. The report ranks Pakistan at 130th on the Global Prosperity Index out of 142 countries in the world. The report says that Pakistan has shown itself as a source and recipient of instability, but it has also been remarkably resilient. As a matter of fact, the conflicting reports about Pakistan and its economy seem a kind of subterranean move by India and other hostile nations to degrade one of the most powerful Islamic countries in the world. According to the report, ever since Bhutan launched Gross National Happiness Index in 1972, many other countries followed the suit by readjusting and realigning their socio-economic

programmes. The countries have included healthcare and education services, life expectancies, poverty and employment rates in the broader definition of national prosperity while the index is formulated on the logic that prosperity is more than just the accumulation of material wealth. The index comprises eight categories which are — economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom and social capital. Norway has once again grabbed the top position in the list for the seventh year in a row, followed by Switzerland, Denmark and New Zealand while Haiti, Afghanistan and the Central African Republic are at the bottom of the list in

that order. With regard to Pakistan, it is behind Bangladesh and India, but good news is that it has improved its performance in four out of eight categories. Since the Pakistan army has started operation against terrorists, the security of the country has considerably improved while governance and personal freedom have also shown signs of improvement this year. The country has the lowest level of satisfaction with freedom of choice in the region during the last Sive years, but there is improvement in the personal freedom. Though these kinds of reports are prepared with speciSic agenda, they are warning shots for the governments in developing countries to improve their performance.

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Russia proposes restructuring Ukraine’s debt MOSCOW: We haven’t just agreed to restructure the Ukrainian debt, we have oﬀered better conditions than the International Monetary Fund was asking of us, Putin said. Russia has proposed that Ukraine pay down its eurobond debt in $1 billion installments starting in 2016, President Vladimir Putin said, speaking from the sidelines of the G20 summit. Previously, Russia had insisted that Ukraine pay their $3 billion euro bond debt in full by the end of 2015. “We haven’t just agreed to restructure the Ukrainian debt, we have oﬀered better conditions than the International Monetary Fund was asking of us,” Putin said. The IMF had asked that Russia postpone repayment until 2016. Putin said he had discussed Ukraine’s debt repayment with U.S. President Barack Obama and IMF President Christine Lagarde on Monday.

Qatar Chamber embarks on iCC world Trade Agenda he International Chamber of Commerce and the Qatar Chamber have embarked on a second phase of the ICC World Trade Agenda, marking the occasion today in Paris by signing a renewed partnership agreement between the two organizations. ICC, in partnership with Qatar Chamber of Commerce and Industry, launched the ICC World Trade

Agenda (WTA) in 2012 to address the stalemate in multilateral trade negotiations under the World Trade Organization’s (WTO) Doha Round. The initiative aims to define global trade negotiation priorities from the perspective of the private sector and advance multilateral trade talks beyond the Doha Round by urging WTO Members to prioritize areas where tangible results can be achieved. These areas include: The support of the Qatar Chamber has allowed ICC to play a central role in driving the landmark Trade Facilitation Agreement through to implementation. We look forward to the next phase of this initiative to support the development of the multilateral trading system for the benefit of all. Signing the agreement on behalf of the world business organization, ICC Secretary General John Danilovich thanked Qatar Chamber of Commerce & Industry Chairman Sheikh Khalifa Bin Jassim Al Thani for his steadfast support over several years and said: “The support of the Qatar Chamber has allowed ICC to play a central role in driving the landmark Trade Facilitation Agreement through to implementation. We look forward to the next phase of this initiative to support the development of the multilateral trading system for the benefit of all.”—CB Report

Wednesday November 25, 2015

Chambers

LCCi demands revamping of loss-making pSes T

LAHORE

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he Lahore Chamber of Commerce and Industry demanded of the government to run all Public Sector Enterprises (PSEs) under Public-Private partnership as majority of public entities have failed to deliver desired results. According to a statement issued here, the LCCI president Sheikh Muhammad Arshad, senior vice president Almas Hyder and vice president Nasir Saeed said that government would have to some extraordinary plan to control heavy loss Rs. 600 billion to the national exchequer. “Business community is the ultimate loser as these loss making Public Sector Enterprises (PSEs) are being run through the duties and taxes imposed on the trade and industrial sectors.” They said that though “salvage plan” is well on the way as far as Pakistan Railways and Pakistan International Airlines (PIA) are concerned but situation in the other PSEs was quite disappointing. The LCCI ofSice-bearers said that keeping in view the massive loss be-

ing caused by the Public Sector Enterprises (PSEs) government should take measures on war footing to make these organizations proSitable or go for the option of privatization. They said that in the advanced economies like the United States,

United Kingdom and Japan etc, the role of PSEs is minimal and the private sector is the most important instrument of socio-economic prosperity, and there is continued growth of privately-run corporations. They said that the signiSicance

pakistan’s soft image be promoted: FCCi

FAISALABAD

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oft image of Pakistan should be promoted at the international level and “Branding Pakistan” is doing a commendable job by involving foreign diplomats in this process, said Chaudhary Muhammad Nawaz President Faisalabad Chamber of Commerce and Industry (FCCI). He was addressing an introductory exhibition “Colours of Pakistan through the eyes of Diplomats” in FCCI complex here today. Elli Takagaki founder Paper Miracles, Syed Ahmed Masood and Salman Shehzad of Brand Pakistan also participated in this function. Chaudhary Muhammad Nawaz said that terrorism during last decade had badly damaged the Pakistan’s image abroad and thus Pakistan was handicapped to fully ex-

ploit its export potential during this tenure. “Situation has now returned to normal”, he said and added that diplomats and foreign visitors are surprised to see that today’s Pakistan is not as unsafe as it was projected by the international media. “It is as safe as any other country of America or Europe”, he said and added that it is the most appropriate and high time for us to en- cash this changed conditions by projecting and promoting our indigenous brands in international markets. Appreciating the role of Brand Pakistan, President FCCI said that organizing Exhibition “Colors of Pakistan through the eyes of Diplomats” is very appropriate and in time, adding that it will help Pakistan to fully exploit its potential by introducing its indigenous brands in the international markets. Jamil Ahmed Vice President FCCI stressed the need for the develop-

ment of requisite infrastructure deemed necessary to develop, promote and market Brand Pakistan in international markets. He said that Foreign Office of Pakistan and commercial consular posted abroad are already projecting soft image of Pakistan but business community should also contribute its role with serious, focused and sustained approach. He also underlined the importance of value addition and said that despite of the fact that Bangladesh does not produce even a single bale of cotton, yet it was earning 30Billion Dollars only through value addition. In this connection, the women of Bangladesh have played an important and commendable role. He told that Pakistan is earning 1.5 Billion from one million bales of cotton whereas Bangladesh is earning 6 Billion dollars from the same quantity of cotton.

of PSEs cannot be ignored, in view of the fact that they remain the most employment-intensive and capitalintensive organizations. The LCCI ofSice-bearers suggested formation of a committee of experts from public and private sectors to revisit strategy and adopt methods which provide a new impetus to the PSEs. They said that the committee should go deep into the broader political philosophy and vision under which the PSEs will be required to play their role in the new competitive environment. They said that PSEs of Pakistan should continue to remain the backbone of the economy and therefore their revival is critical to our economic survival. They said that PSEs are the only industries that the nation can depend on to check further decline in our growth rate. They said that it is all the more necessary for the government to increase its efforts for revival of the PSEs. Greater autonomy and non interference in their functioning have to be guaranteed so that the country can fully reap full the beneSits of PSEs. They said that PSEs are not only industries for short-term economic and commercial gains but are our national assets.

Fairfax chamber adopts new name he Fairfax County, Va., Chamber of Commerce is adopting a new name and starting in January will brand itself as the Northern Virginia Chamber of Commerce. The business group, which counts many government contractors among its members, says it is trying to bring “one unified business voice for Northern Virginia.”“The Fairfax Chamber is the voice of business in Northern Virginia and has been for some time now,” said Mitchell Weintraub, chamber chairman and partner with Cordia Partners, a provider of accounting and business advisory services. The chamber has actually trademarked the term “Voice of Business in Northern Virginia.”—CB Report

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Hong Kong Customs seizes 15kg ivory worth HK$150,000 Wednesday November 25, 2015

World

HONG KONG: Hong Kong Customs seized about 15 kilograms of suspected worked ivory worth about HK$150,000 and arrested an incoming male passenger at Hong Kong International Airport yesterday. Customs oﬃcers intercepted a suspicious 32-year-old male passenger at the airport yesterday evening. The passenger arrived in Hong Kong from Abuja, Nigeria, via Dubai, the United Arab Emirates. Oﬃcers found about 15kg of suspected worked ivory concealed in a tailor-made vest inside the baggage carried by him. The case was handed over to the Agriculture, Fisheries and Conservation Department for follow-up investigation. The case was brought before Tsuen Wan Magistrates’ Courts today.

Dubai Customs seizes illicit goods in 101 raids

DUBAI

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ubai Customs has conSiscated a large amount of counterfeit products, as part of its efforts to protect intellectual property rights, in the Sirst nine

uk authorities seize 110kg illegal ivory ne of the largest hauls of illegal ivory seen in the UK is found at Heathrow Airport. The ivory weighs 110kg, which is more than a baby elephant, and includes tusks, carved bangles and beads. It was found last month at Terminal 4 in baggage left abandoned in transit from Angola to Hanover, Germany. Ivory trading is strictly controlled under the Convention on International Trade in Endangered Species and a permit is required by EU law. The global trade in illegal wildlife products is said to be highly profitable. It was denounced by the Duke of Cambridge on Chinese television in October. Phil Douglas, the director of Border Force Heathrow, said: “This is one of the largest seizures of its kind made in the UK and it demonstrates the vigilance of our oﬃcers.—CB Report

months of the year. Ahmed Mahboob Musabih, Director of Dubai Customs, said: “Dubai Customs conducted 101 seizures of illicit goods in the Sirst nine months,” adding that counterfeits pose a serious challenge and adversely impact the growth of international trade. “The World Chamber of Commerce estimates the worldwide volume of counterfeit products trade

at about $654 billion.” The wide circulation of counterfeits costs the global economy sectors dearly, he has told the 5th Conference on the Fight Against Intellectual Property Crime in MENA. “The IT sector alone stands an annual loss of $100 billion while counterfeit and substandard medicines cost pharmaceutical companies around the world $46 billion every year. Additionally, the damage borne by people buying fake auto spare parts is around $12 billion.” A recent report by the World Intellectual Property Organisation show that the Patent Cooperation Treaty (PCT) saw 214,500 patent applications in 2014, representing an increase of 4.5 per cent over 2013. “On the other side, international trademark applications grew to a record of 47,885 in 2014, up by 2.3 per cent from 2013.” Dubai Customs seeks optimal protection of the community against the serious effects of counterfeit and illicit trade, Musabih pointed out.

uk authorities seize 16,000 illegal Chinese cigarettes

LONDON

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raid on a suspected illicit tobacco factory has led to 16,000 illegal Chinese cigarettes and almost 12 kilos of loose leaf tobacco being taken off the streets of Islington. The borough’s trading standards ofSicers and police swooped on a house and seized a sizeable haul of dangerous counterfeit tobacco products with a street value of £11,000, the Gazette can reveal. The seizure has prompted an appeal for the public to be wary of the dangers of cheap fake tobacco. Doug Love, of Islington trading standards, said: “This was a decent sized haul. These counterfeit Winston cigarettes have low quality printing and a non-EU picture warningThese counterfeit Winston cigarettes have low quality printing and a non-EU picture warning. “But any amount of enforcement will not really dent the actual sales. What’s got

to happen is for people to be persuaded that it’s not worth buying illicit tobacco and in that way reduce the demand. “We need a comprehensive London campaign to explain to the public why illicit tobacco is even more dangerous than genuine tobacco.” The Gazette has been behind the scenes with Islington trading standards to Sind out more about the dangers of the trade in counterfeit or smuggled cigarettes. ‘Illicit whites’ Often linked to organised crime, the black market robs HMRC (Her Majesty’s Revenue and Customs) of £2billion a year in lost tax duty and also puts public health at risk. We can reveal fake cigarettes are sometimes laced with lethal heavy metals like arsenic, while clever copies of main stream brands such as Benson & Hedges and Marlboro, known as “illicit whites”, are completely unregulated. Fire risks Counterfeit or smuggled cigarettes, which do not conform to EU safety standards, also pose signiSicant Sire risks.

malaysia Customs fails to collect San Francisco man arrested at customs rm12.6m from car importers he Royal Malaysian Customs from Pekema’s licensed warehouses clearance checks at Bengaluru Department has failed to col- for not applying to extend the stor-

ir India seems to have pulled off a coup of sorts like Etihad Airways did with the US immigration and customs ofSicials. Etihad will now have a direct competition in Air India with the latter too introducing Slight services from Bengaluru to San Francisco with the American ofSicials offering immigration and custom clearance checks at the Bengaluru airport itself. Air India is touting that their passengers will have huge beneSits trav-

elling to San Francisco as they will undergo immigration and customs at their boarding points itself and can have comfortable journey further. Air India will commence its services from Bengaluru to San Francisco via New Delhi on December 2. It is to be seen how Bengalurueans will respond to the Air India’s new offering as there is a Delhi stopover in between, and the Slight from Delhi to San Francisco will be one of the longest.—CB Report

lect duties amounting to RM12.65 million from the Malaysian Association of Malay Vehicle Importers and Traders (Pekema). According to the Auditor-General’s Report 2014 Series Three, as a result Pekema did not apply to extend the vehicle storage period in their licensed warehouses for over 36 months without paying duties/taxes. It said until end of 2014, duties estimated at RM12.65 million were supposed to be recovered

age period. “Control over the vehicle stock in the licensed warehouses is not that effective because the Customs department did not ensure that the licence holders apply for the vehicle storage extension,” the report said. Hence, the department has issued lot numbers on the vehicle stocks in the licensed warehouses, issued letters to the licensed holders to ensure that the stock statements were prepared in accordance.—CB Report

France Customs oﬃcer shot dead by weapons smuggler

A TOULON

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French customs officer has been shot dead in the southern city of Toulon by a suspected weapons smuggler. Two police officers were also injured in the incident shortly after 11am local time today.

The Var-Matin newspaper reported that a man who had been “monitored” by customs opened fire as police tried to arrest him at his home in the Saint Jean du Var area. As he fled, he allegedly shot at officers multiple times with an M16 assault rifle, killing the customs officer and wounding police before he was arrested.

French media reported that the operation was linked to weapons smuggling in the city, which lies east of Marseille in Provence and houses a major naval base. France 3 reported that the case has no connection to the Paris attacks, where 130 people were killed in shootings and suicide bombings on 13 November.

One of the suspected attackers, Salah Abdeslam, remains at large today and his home city of Brussels is in a state of high alert. The Belgian capital’s underground system has been shut, municipal buildings and tourist attractions closed, and residents urged not to gather in large numbers amid fears of another Parisstyle atrocity.

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Cochin Port facing financial crisis NEW DELHI: The port has sought restructuring of the dues, envisaging containing the mandatory penal interest to Rs.14.05 crore. Cochin port is heading for a major ﬁnancial crisis, with the accumulated losses touching Rs. 478.77 crore. The Centre has also slapped interest and penal interest on the ﬁnancial aid of Rs.258.14 crore it had extended to the port from time to time. The port is now required to pay to the Centre Rs.263.53 crore as interest and Rs.715.34 crore as penal interest. The accumulated losses have been mounted on account of the below capacity operations at the Vallarpadam Container Terminal and the LNG terminal in Kochi.

Angola launches transport networks to build 3 major ports our new transport networks will be created and three major ports built in Angola as soon as possible in order to have full coverage at a national and regional level, said Thursday in Luanda the Minister of Transport. The four networks are the national rail network, national network of logistics platforms, coastal network of northern Angola and Luanda light rail network and the ports are the new deepwater port of Cabinda, the new port of Luanda, at Barra do Dande , where the current port serving the capital of the country will be trasferred and the new port of Porto Amboim, according to Angolan news agency Angop. Augusto da Silva Tomás, who was speaking at the opening session of the International Transport and Logistics Fair (Expotrans 2015), said that work is also underway on the new international airport in Luanda, along with doubling the railway line between the stations of Bungo and Baía and a new railway line between the latter station and the new airport.—CB Report

Ports & Shipping

Wednesday November 25, 2015

port of Long Beach considers new way to cut container dwell time

inkoSolar has reported record shipments in the third quarter of 2015, while guiding fourth quarter shipments of between 1.4GW to 1.7GW. JinkoSolar reported third quarter total solar module shipments of 1,134.5MW, which included 70.6MW to its own downstream PV projects. Total solar product shipments to the third parties were 1,107.7MW of which 1,063.9 MW of solar modules, 10.4MW of silicon wafers and 33.4MW of solar cells, an increase of 21.1% from 915MW shipped in the second quarter and an increase of 56.4% from 708.2MW shipped in the third quarter of 2014. The company has shipped a total of 2,640MW of solar modules in the first nine months of 2015. —CB Report

new market trend is emerging in the tanker market, as new “players” are joining the demand side. So called “teapot” or “tea kettle” is the collective term for Chinese independent refiners. As shipbroker Charles R. Weber explains in its latest weekly report, “teapots mainly generate gasoline and gasoil/diesel. China’s teapot refineries have a total oil‐ processing capacity of almost 220Mta, or about 4.4Mnbd, which is equivalent to 30% of Chinese total refinery capacity (14Mnbd). While they have no rights to export their refined product output, changes have been made allowing some of them to import their own crude”. According to CR Weber, “teapots have been regarded as second‐class operations dependent on state petrochemical companies for their feedstock, which typically includes fuel oil and bitumen blend crude oil. As of September 2015, the landscape has started to change with seven refiners granted crude oil import licenses, which will allow them unfettered access to internationally traded crudes thus potentially reducing costs and raising quality. The driver of this change in policy which has been rapidly introduced ‐ has been in part to widen access to the glut of cheap international crude oil that is currently available.—CB Report

JinkoSolar reports record shipments in Q3 of 2015

China’s ‘teapot’ refiners enter crude import market

LONDON

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he Port of Long Beach is considering a creative approach to reducing the amount of time that containers sit idle at marine terminals, a measure that could reduce congestion at the second largest U.S. port by changing how free storage time is calculated. By changing the measurement of free storage time to six work shifts, from four calendar days at present, terminal operators could cut container dwell time by an entire day,

and this would increase container velocity. “When containers stack up in terminals, it leads to extra handling that makes the process slower for longshore workers, the shippers that depend on them, truckers who move the goods and ultimately the consumer. This approach will keep the system more Sluid and help avoid congestion,” said Jon Slangerup, Long Beach CEO. Long Beach, like many U.S. ports, specifies in its tariff how long an imported container can be stored at marine terminals without charge. In Long Beach, the freetime allotment is four days. After that, a storage charge, known as demurrage, is levied to discourage

lengthy container dwell times from taking up valuable terminal space and contributing to overall port congestion. As ships get bigger and cargo surges stress the resources of terminals, ports are looking for ways to discourage abuse of free-time provisions without alienating customers. Shipping lines, in their service contracts with retailers and other large importers, often pick up the tab for customers who leave their containers on the docks for days after free time has expired. Carriers themselves are saying they can no longer afford to absorb demurrage charges on behalf of their customers.

North Sea traders eye floating storage options this week

HONG KONG

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orth Sea traders have been eying Sloating storage options this week as discounted prompt oil and a relatively wide contango structure peaked interest in Sloating storage plays, shipping sources and traders said. “A few have been asking questions, could be for spot Sixtures with storage options done like a demurrage rate,” a shipbroker said.

With land-based storage in short supply globally estimated to be more than 80% full in Northwest Europe traders have been inquiring about the availability of VLCCs with Sloating storage options for chartering. A glut of prompt loading North Sea crude drove deep discounts on Brent and Forties Monday and Tuesday, while fundamental weakness in the global oil complex kept the January/February contango structure below minus 80 cents/b from Monday through to Thursday. “It’s not impossible when you

look at differentials, futures structure is probably not weak enough but from a Dated Brent point of view, if you can lock it at a $2/b discount [Sloating storage can work],” a trader said. However, with physical differentials for North Sea grades staging a recovery in the latter half of the week as rumors of traders looking to pick up cheap barrels either for storage or arbitrage Siltered through to other participants, traders said the window to Six vessels for Sloating storage might have closed.

“Now that the news is around, offers have moved up accordingly…but if you locked in the storage economics already it could still work,” a second trader said. Demurrage rates on VLCCs are currently around $60,000-$70,000/day 3 cents/b to 3.5 cents/b per day requiring an effective $1.085/b per month of carry. While futures structure has not weakened enough to pay for Sloating storage, the discount of prompt Forties cargoes earlier in the week attracted those who felt the grade had been oversold.

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Customs foils bid to smuggle fertiliser to Afghanistan PESHAWAR: A bid to smuggle fertiliser to Afghanistan was foiled by the Customs authorities and Khasadar at Torkham border, the oﬃcials informed on Sunday. Sources said, Khasadar troops were busy in their routine checking when they stopped a loaded trailer bearing registration no.KBL-26363 for examination. During search, 375 bags of fertiliser were recovered which were concealed under the cement bags. The driver of the truck was identiﬁed as Sharifullah, who is a Afghan citizen and was arrested and a case was registered against him.

Wednesday, November 25, 2015

CUSTOMS BULLETIN

Sialkot ASo impounds smuggled cloth worth rs 7m on Collector reza’s orders SIALKOT guLZAr AHmeD

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he Anti-Smuggling Organization Sialkot (ASO) has seized cloth in different operations worth Rs 7 million. As per the details, the ASO team acting upon information received through Model Customs Collectorate Sialkot Collector Ahmed Reza Khan intercepted different small vehicles loaded with cloth. Following the directions of Assitant Collecter Palwasha Sayed and Chaudhry Fahad Bashir, Addtional Collector Faiz Ali conducted the operation against the smuggled cloth. The ASO team comprising Superintendent Irfan, Inspector Manshah and other relevant staff took part in the raid on GT Road. The ASO staff asked the drivers to produce any documentary evidence showing the legal import and lawful possession of the said items, but he could not produce any documents, after which the ASO seized the cloth under the prevailing customs law. After seizing the cloth and vehicle, the customs served a notice to the accused to appear before the competent authority to prove the legal importation of the cloth.

Custom tribunal’s decision to seize mobile phones challenged ISLAMABAD

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he Islamabad High Court (IHC) on Monday accepted a petition for hearing, challenging verdict of the Customs Appellate Tribunal. A divisional bench of the IHC comprising of Justice Shuakat Aziz Siddiqui and Justice Athar Minallah heard the case and issued notices to CAT for taking part in the

court’s proceedings. The court was hearing a petition Siled by Miraj Khalid, who has prayed the court to set aside decision of Customs Appellate Tribunal, dated October 6, 2015, under which the tribunal had authorized the Customs Department to conSiscate 40 mobile phones belonging to Miraj Khalid. The petitioner, who appeared before the court and argued personally, has submitted the plea seeking return of mobile phones after paying chargeable customs duty and 20 percent Sine as per law. Earlier, Customs Appellate Tribunal (CAT), Islamabad chairman Ghulam

Murtaza Bhatti had given the order in which he set aside decision of Customs Collector (appeals) issued in a case and accepted Customs department’s plea to allow it to conSiscate the said mobiles. The chairman stated in the decision: “in view of the circumstances, the appeal is accepted and the order in appeal number 17/2015, passed by learned Customs Collector (appeal), Islamabad is set aside.” Customs Department had approached Customs Appellate Tribunal against decision of Customs Collector, , Zulifqar A Kazmi in which the collector had given an order in favor of

Miraj Khalid, who had carried 40 mobiles along while returning from Australia. Customs authorities had seized mobile phones at Benazir Bhutto International Airport, Islamabad. CAT chairman had stated in the verdict: the seized good in such a quantity are prohibited to carry as accompanied baggage items as provided under rule 16 of the baggage rule of 2006. The respondent did not make any true declaration as provided under section 139 of the customs act, 1969. The mobile phones were brought into the country for home consumption by the way of smuggling,

Published by M S Raza Oﬀ# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,oﬀ I.I. Chundrigar Road, Karachi

therefore, re-exportation is not justiSied.” The tribunal further observed that customs collector did not go through the proper record and passed the impugned order in haste and hurry manner. Meanwhile, Islamabad High Court (IHC) on Monday issued notices in cases Siled by commissioner income tax. IHC divisional bench comprising of Justice Noor ul Haq Qureshi and Justice Aamer Farooq heard the cases Siled by commissioner income tax against M/s Safe Guard Security Management Private Limited and citizens, Khalid Randhawa, Atif Raheem Burki and others.