Tuesday, 24 October 2017

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Karachi, Tue October 24, 2017

ISLAMABAD

M FAIZAN

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BR Member Customs Zahid Khokhar has said that the Federal Board of Revenue has merged eight statutory regulatory orders (SROs) to issue SRO 1035(I)/2017, which has been imposed with effect from October 17.

“There would be about $500 million de-

crease in the country’s imports by June 30, 2018,” he said, adding that there would also be more than Rs20 billion increase in revenues, which would be spent on the payment of exporters’ refunds.

“Though this SRO, we discouraged import of unnecessary and luxurious items and the burden of increased customs duties on these items would be only on upper class,” said Members Customs.

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Zahid Khokhar further said that keeping in mind the expected surge in smuggling activities after the imposition of the above-said SRO, all the Customs collectorates, especially Quetta, Gilgit-Baltistan and Peshawar as well as Director General of Customs Intelligence, have been directed to urgently intensify antismuggling actions. The new SRO would help boost the local industry, said Member Customs Zahid Khokhar.

About 298 imported mobile phones impounded by ASO on GT Road

Surriya Butt revises customs values of soap noodles thru VR No 1216/2017

Customs Intelligence seizesNDP irons, vehicle during crackdown

Rs5.76b NAB reference: SHC orders Sharjeel Memon’s arrest

MCC collects Rs186m more duties & taxes than assigned target

ASO seized various kinds of 298 smuggling foreign origin mobile phones | See pAge 02 |

DG Valuation has revised the customs values of soap noodles throughValuation | See pAge 03 |

Directorate of Customs I&I team during crackdown against smuggled goods | See pAge 04 |

SHC ordered arrest of PPP leader Sharjeel Memon after his interim bail application | See pAge 11 |

MCC generated additional revenue of Rs186.00m as all duties and taxes | See pAge 16 |

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Car Cell takes into possession vehicle on actionable tip-off Tuesday, October 24, 2017

Islamabad

ISLAMABAD: The Car Cell of the Model Customs Collectorate (MCC) has impounded a Non-Duty-Paid (NDP) car, PASSO model 2010, valued Rs01.00million.

According to details explained by sources of the MCC Islamabad to Customs Today that, on an actionable tip-off shared by Collector MCC Dr. Saeed Khan Jadoon, the Car Cell set up a picket on Chandni Chowk Rawalpindi and intercepted the smuggled car bearing fake registration number.

About 298 imported mobile phones impounded by ASo on gt road

ISLAMABAD

ISLAMABAD

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tArIQ DerYA

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ustoms Appellate Tribunal has issued afresh notices in a number of cases involving filed offices of Federal Board of Revenue.

The bench issued notices in cases filed b M/s Parts & Parts, M/s Chief Autos. Tribunal’s Member Ziauddin Wazir heard the cases. The bench dated in office hearing of other cases filed by M/s Aman Elahi, M/s Kohinoor Traders, M/s Saleem Silk Centre, M/s Five Star Trading, M/s Pakistan Royal Group and M/s Nayatel Private Limited, M/s Degicell & others, M/s Kohinoor Chemical, Mirza Muhammad Majid, M/s Fazal Razaq, M/s Fazal Ur Rehman and Gul Rehman & others. The appellants had filed cases against Directorate General of Intelligence and Investigation, Islamabad and Collectorate of Customs, Islamabad. Earlier the bench had dismissed customs cases of M Awais.

During previous hearings the bench had also heard case by Assistant collector Collectorate of Customs, Islamabad, M/s Universal Gateway, M/s New Ehsan Enterprises and M/s Pepsi Cola International.M Awais and M/s Pepsi Cola International had filed case against Model Collectorate of Customs, Islamabad.

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he Anti-Smuggling Organization (ASO) Islamabad seized various kinds of 298 smuggling foreign origin mobile phones worth Rs1.5million from a passenger travelling by Toyota Hiace via GT Road Peshawar to Rawalpindi.

According to details explained by sources of ASO Islamabad that, on a tip-off shared by Dr. Saeed Khan Jadoon, Collector Model Customs Collectorate (MCC) Islamabad, the ASO set up a picket on GT Road and intercepted Toyota Hiace with registration No: RIS4059 which was coming from Peshawar. The sources told CT that, during a thorough search of the vehicle, ASO squad found 289 ordinary mobile phones and 13 costly Galaxy Android foreign origin mobiles. Prior to the recovery, the ASO staff asked the possessor of mobiles named Amin Khan s/o Mehmood Khan to show any legal proof of the goods, but he failed to do so.The ASO staff seized the mobile phones and shifted them to State Ware House. An FIR was registered against the tax evaders and the case forwarded to the Investigation and Prosecution Department for further action.

The Collector MCC Islamabad has said the ASO has adopted an

customs tribunal seeks reply from parties on references filed by FBr

intelligence based system to execute the actions against smugglers and tax evaders. The item was impounded by Inspector Hafiz Khan

and other supporting staff. It may be remembered that the ASO is facing hurdles to take actions against tax evaders and smugglers

who travel via Motorway. He complained that the Motorway police do not cooperate with the Customs Department.

Ihc adjourns hearing of customs reference filed by M/s pakhtoon

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ISLAMABAD

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slamabad High Court division bench dated in ofQice hearing of a customs reference directing parties to provide record pertaining to the case prior to next date of hearing. IHC bench comprising Justice Shaukat Aziz and Justice Mohsin Akhtar was hearing the customs case Qiled by M/s Pakhtoon. The appellant had Qiled the case against

Collectorate of Customs, Islamabad.

The bench also directed FBR Qield ofQice, MCC and the appellant to submit record on the case in order to assist the court. Justice Aziz’s single bench also heard another customs case Qiled against MCC by Ehsan ur Rehman.

Meanwhile, the bench dated in ofQice hearing on M/s Dancom Pakistan’s case. M/s Dancom Pakistan had Qiled the case challenging an announcement made by the Appellate Tribunal Inland Revenue (ATIR)-

through which it had sustained decision announced by the department’s adjudication pertaining to the show cause notice to M/s Dancom Pakistan for outstanding tax recovery.Through both the references, M/s Dancom Pakistan had named chief commissioner Inland Revenue, LTU, assistant commissioner Inland Revenue Withholding, LTU, Commissioner Inland Revenue (Appeals), LTU, and Federal of Pakistan through the chairman of Federal Board of Revenue (FBR) as respondent in the case.

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Millions of rupees corruption detected through WeBOC system KARACHI: Millions of rupees corruption in the National Bank of Pakistan (NBP) Customs House Branch jolts the officers.

According to the source, the mega scandal of fraud and corruption has surfaced in the National Bank of Pakistan (NBP) Customs House Branch after which an investigation has started the finding against the heinous crime.

The sources informed Customs Today that some officers are involved in the mega corruption and embezzling the amount of customs duties as well as excise and taxation accounts of the National Bank of Pakistan Customs House branch.

pcA detects tax evasion of rs 9.98m in first ten days of october

Tuesday October 24, 2017

Karachi

Surriya Butt revises customs values of soap noodles thru Vr No 1216/2017

KARACHI

cuStoMS BuLLetIN report www.customsbulletin.com

irectorate of Post Clearance Audit (PCA) Director Nadeem Memon has shown excellent performance and detected three new cases of tax evasions involving Rs 9.98 million in first 10 days of October. Sources told Customs Today that Directorate of Post Clearance Audit, headed by Director Nadeem Memon, uncovered cases pertaining to short payment of customs duty and sales tax and withholding tax.

In some cases, inadmissible concessions in additional sales tax, federal excise duty and income tax were availed. The directorate served two contravention reports and two observations during the first ten days of October involving total duty and taxes of Rs 9.98 million.

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court seeks charge sheet in gold smuggling case KARACHI

M B rANA

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ustoms Court Judge Syed Faiz Rasool Rashdi has directed investigation officer to submit a charge sheet against suspects, namely Adamjee son of Ghulam Muhammad and Sumaiya Adamjee wife of Adamjee, who were arrested for attempting to smuggle assorted gold jewellery 21K, weighing 1,338 grams worth Rs 5.55 million. During the hearing, investigation officer informed the court that the suspects were intercepted at Jinnah International Airport Karachi after they came from Dubai through flight number FZ331. He further informed the court that during the search, officials of the customs authorities recovered assorted gold jewellery 21K, weighing 1,338 grams worth Rs 5.55 million from them.

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KARACHI

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he Directorate General of Customs Valuation Director General Surriya Ahmad Butt has revised the customs values of soap noodles through Valuation Ruling No 1216/2017 under Section 25-A of the Customs Act, 1969.

The Customs values of soap noodles were determined under Section 25-D of the Customs Act, 1969 vide Order in Revision No. 217/2016 dated 2-8-2016. However, it has been challenged before the Appellate Tribunal and the Sindh High Court in Karachi. The values of soap noodles were linked with ICIS prices vide this Order-in-Revision.

Moreover, it has been observed that ICIS prices are not readily available to the assessing ofQicers which hinders the process of assessment.

Moreover, several representations have also been received in this Directorate General to determine the customs values afresh in the light of existing international market prices.

M/s. Nimir Industrial Chemicals Limited, Lahore also Qiled a complaint in Board highlighting the malpractices of under-invoicing in values of soap noodles.

Therefore an exercise to determine customs values of soap noodles afresh in terms of Section 25A of the Customs Act, 1969 was initiated. Stakeholders’ participation in determination of Customs

values: A meeting for the determination of customs values of soap noodles with stakeholders was scheduled on 26-09-2017. The meeting was attended by a number of importers, including representatives of M/s Pakistan Soap Manufacturers Association, Karachi and M/s Nimir Industrial Chemicals Limited, Karachi.

During the course of meeting, the importers were of the view that the values of Soap Noodles were

A meeting for the determination of customs values of soap noodles with stakeholders was scheduled on 2609-2017. the meeting was attended by a number of importers, including representatives of M/s pakistan Soap Manufacturers Association, karachi and M/s Nimir Industrial chemicals Limited, karachi

Shc seeks comments for release of hino dumper

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KARACHI

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he Sindh High Court (SHC) has directed parties to Qile their para wise comments on a constitutional petition Qiled by Gul Wali son of Kismat Khan, seeking release of his Hino Dumper bearing registration number TKY-960 seized by customs ofQicials due to alleged smuggled and tampered Chassis number. A two-member bench,

comprising Justice Munib Akhtar and Justice Umer Sial, was hearing the petition Earlier, counsel for the petitioner stated that petitioner is lawful owner of the above mentioned vehicle and never involved in any crime, however, ofQicials of the Anti-Smuggling Organization Customs Collecorate intercepted his Hino Dumper near Customs Check Post. During the search, the driver produce all relevant documents, however, customs ofQicials seized his vehicle without lawful authority

or showing any lawful reason. He further argued that allegation was Qixed that said vehicle was smuggled and found its chassis tempered, being aggrieved, petitioner moved to customs appellate tribunal which allowed his appeal and directed customs ofQicials to release his vehicle, however, high ofQicials of the customs department are not following court’s order. Citing Secretary Finance and Director, Customs Appellate Tribunal, Collector of Customs Appeals.

determined under Section 25-D of the Customs Act, 1969 by the Director General without any representation by the importers. While, previously no valuation ruling of the Soap Noodles was in field. During the meeting, fair chance and ample time was granted to the Importers and the local manufacturers to develop consensus for determination of customs value of soap noodles and send a mutually agreed proposal.

IrSA releases 80,700 cusecs water he Indus River System Authority (IRSA) released 80,700 cusecs water from various rim stations with inflow of 57,300 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1484.19 feet, which was 104.19 feet higher than its dead level of 1,380 feet.

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Customs Court approves bail plea of accused involved in smuggling Tuesday October 24, 2017

Lahore

LAHORE: The Special Federal Court of Customs Taxation and Anti Smuggling has approved post arrest bail plea of accused who is involved in smuggling of shafoon cloth. He was in jail on judicial remand. Customs Court on Tuesday granted bail to the accused against cash guarantee of Rs100,000 and personal surety as well. Lawyers of the accused argued before the court that customs has registered a case against Jumma Khan without any base so court should grant bail to the accused. Earlier as per details available to Customs Today customs court has directed the customs I&P to complete investigation within the given time and present the accused before the customs court in next hearing for further proceeding.

Customs Intelligence has registered a case against him under Pakistan Customs Act of 1969.

court puts off hearing of accused mobile smuggler held at Sialkot Airport LAHORE

M IMrAN MehAr

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he Special Federal Court of Customs Taxation and AntiSmuggling has adjourned a hearing of an alleged mobile smuggler arrested from the Sialkot International Airport.

The accused, travelling from South Africa to Sialkot, was checked by the customs ofQicials at the Sialkot Airport. The customs team found 30 costly mobile phones hidden in the baggage of one Muhammad Sarwar. The customs team had apprehended the accused and presented him before the customs court for physical remand but the judge denied the request and sent him to jail for judicial trial.

Muhammad Sarwar also Qiled a

court rejects bail plea of accused involved in cigarettes he Special Court of Customs Taxation and Anti-Smuggling has rejected the bail plea of an accused who is involved in smuggling of cigarettes to United States of America. The accused was arrested by the customs authorities from Allama Iqbal International airport while making attempt to smuggle huge quantity of cigrattes.

Sources told Customs Today that accused Shahid Iqbal was arrested in charges of smuggling. He was making an attempt to smuggle cigarettes to USA while declared that these are cloths. Sources said that worth of the cigarettes is more than Rs 1.3 million. Customs Court heard the case again and cancels the bail of the accused. Court has also asked the customs authorities to produce the accused on next date of hearing. Earlier customs investigation team produced Shahid Iqbal before the court and informed the court that they have completed investigations from the accused in five days physical remand. –CB Report

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petition for his post-arrest bail that has also been postponed because of the unavailability of Prosecutor of the court. Meanwhile, the customs court put off hearings of 16 cases related to customs matters.

During the hearings of most of the cases, the counsels for the accused persons requested the court to adjourn the hearing of their respective cases for preparation of arguments on which the court them for different dates. According to the cause list, three out of 16 cases were Qixed for formal hearing Qiled against accused Shehzad, Abdullah Tariq Fatmi and others. Pre-arrest bail pleas were also scheduled for the day that the court has also adjourned for next hearing.

The court also put off cases of narcotics, tax evasion, smuggling and customs matters. Cases from Faisalabad, Lahore, Gujranwala and Multan were also scheduled for hearings.

customs Intelligence seizes NDp irons, vehicle during crackdown LAHORE

M hAYAt

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irectorate of Customs Intelligence and Investigation team during crackdown against smuggled goods recovered huge quantity of non duty paid goods from Badami Bagh and Kareem Block Allama Iqbal Town Market. Sources told Customs Today, that Director Customs Intelligence and Investigation Rubab Sikandar received credible information about some smuggling attempts. She immediately constituted a customs team under the supervision of Inspector Nawaz and M.A. Iqbal. The customs team raided on truck ada Badami Bagh and recovered 480 pieces of irons. No one came forward to claim the ownership of these irons after which customs team seized the irons.

During another crackdown against non duty paid vehicles Customs team intercepted a Prado bearing registration no: LE-396 and asked the owner of the vehicle who was identiQied as Faizan to produce documents regarding import of the

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vehicle but he remained failed to produce any relevant documents. near Kareem Block Market of Allama Iqbal Town . After his failure Customs team impounded the vehicle and after registering a case started investigations.

customs Intelligence foils bid to smuggle customs tribunal hears 10 cases foreign origin cloth from kala Shah kaku On Monday, the same bench he Customs Appellate Tribu-

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irectorate of Customs Intelligence and Investigation (I&I) team successfully foiled a bid to smuggle huge quantity of foreign origin cloth which was being smuggled in a medicine supply vehicle.

The market value of seized cloth is Rs25 million. Sources told Customs Today, Director General Customs Intelligence and Investigation Shaukat Ali received credible information about some smuggling attempts. He immediately constituted a Customs I&I team under the supervision of

Additional Director Mohammad Mumtaz Ali Raza Khan, Deputy Director Usman Tariq which also includes Superintendent Saleemullah Khan, Intelligence OfQicer ZulQiqar Dogar, Agha Sultan Haider, Nadeem Ahsan, Sohail Murtaza. The above mentioned customs team established check points on main entry and exit points of the city and started checking of vehicles. The team intercepted a vehicle ad during checking recovered foreign origin cloth measuring 97,725 yards of cloth. –CB Report

nal (single & double) bench heard 10 cases on Monday and adjourned all the cases to different dates and reserved the verdict in a few cases. According to the details, division bench-II comprising Omer Arshed Hakeem, Member Judicial and Imran Tariq, Member Technical, heard eight cases, including Fatima Fertilizers versus Directorate Post Clearance Audit (PCA) Lahore, MA Construction versus Customs Lahore, AZ Apparel versus Customs Faisalabad, Amjad Ali versus Customs Lahore.

heard cases filed by Fatima Fertilizers versus Directorate of Post Clearance Audit (PCA) Lahore, Taj Impex versus Customs Sambrial, A.Z. Apparal versus Customs Faisalabad and Customs Sambrial versus Nawab Zada Haider. The single bench-II comprising Omer Arshed Hakeem Member Judicial heard two cases including Habib Ullah versus Directorate of Intelligence and Investigation Faisalabad and Directorate Post Clearance Audit (PCA) Lahore versus Venue Computers. –CB Report

customs Appellate tribunal remanded back case of M. Asim

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LAHORE

SAJID NAwAZ

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ustoms Appellate Tribunal has remanded back the case of Muhammad Asim, a resident of Faisalabad against the Director Intelligence and Investigation, FBR and Collector Customs (Adjudication) Dry Port Faisalabad.

Omer Arshed Hakeem, Member Judicial heard the arguments from both sides and passed the judgment with remarks that its matter of administrative nature and does not pertain to this tribunal and fall within the purview of the executive Collectorate. The case is remanded back to the Collecorate of Adjudication for sending it to the Collectorate of Customs for taking appropriate action accordance with the law.

According to the brief facts of case as reported by the Superintendent of Intelligence and Investigation-FBR Faisalabad are that in pursuance of speciQic information that 9524 cartons of different items were smuggled. The imported goods attracting taxes and duties amounting Rs24,38,668. After the complete examination of goods adjudication proceeding culminated and passed the order-in-original that

charge on the appellant is established and Rs 500,000 imposed as penalty.

Being aggrieved from the order and appeal Qile before the Customs Appellate Tribunal on the grounds that impugned order passed in mechanical fashion without application of mind judicially and independently while deciding the issued agitated by the appellant, therefore, the impugned Order-in-Original is liable to set aside.

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ISLAMABAD

M ArShAD

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mbassador of Brazil Claudio Raja Gabaglia Lins has said that with the objective to enhance bilateral trade volume and increase the economic cooperation between Pakistan and Brazil both the countries are going to establish Pakistan Brazil Business Council (PBBC). PBBC is going to be a platform for both Pakistani and Brazilian investors and businessmen to discuss their future plans along with exploration of profitable avenues present in both the countries.

In an exclusive interview with Customs Today, Claudio Raja Gabaglia Lins said that both the countries, Pakistan and Brazil, should also have an agreement on avoidance of double taxation to accelerate the business and trade activities. However, for this purpose, Pakistan will have to sign this agreement with Economic and Trade Union of South American countries of which Brazil is a member. Once this agreement is signed, Pakistan’s exports to Latin American countries to increase by several times.

To a question about hurdles in bilateral trade and economic activities, Ambassador said that main problem was the lack of information about each other country in the businessmen and investors. Even large number of Brazilian businessmen and investors are not aware of China Pakistan Economic Corridor (CPEC) so I like to see more Brazilian investors in joint ventures with Pakistani businessmen to proQit out of opportunities of CPEC. “For this purpose information is essential, putting investors together is essential therefore at Qirst step is the enhanced number of exchange of trade missions and I like to see more Pakistani trade missions to visit Brazil and more Brazilian trade missions in Pakistan,” he maintained adding, “a large number of Brazilian

businessmen to neighbouring countries and even to China, but the least tend to Pakistan just because of lack of information about enormous business and investment opportunities in Pakistan. Moreover, they don’t know about the safe business environment in Pakistan; therefore, we have to promote this environment in Brazil through social media.”

To a question about latest development on the establishment of Pak-Brazil Chamber of Commerce, Ambassador Lins said that both the countries were aiming on something more concrete and practical Pakistan Brazil Business Council and establishment of Pakistan-Brazil

was oblem r p n i at ma other said th t each r u o o d b a a ss ation nd Amba men a inform s s f e o n k i c s the la he bu ber of r y in t e num g r a count l r s a re s. even nvesto r i o d t s n e a inv smen nomic usines an eco t b s i n k a i a l p m o re Brazi c hina to see e a re o f h k i w l a I t so es wit no cpec ) entur ( v r t o n d i i o of nj corr fit out stors i o r e v p n o i t ian smen Brazil usines b i f cpec n a ities o n pakist u t r oppo

Chamber of Commerce was also in pipelin second step. So we are beginning with estly as Pakistan Brazil Business Council w traders who will like to trade with Brazi Brazil Chamber of Commerce is somewha mal setup and will be established in se Therefore, interaction between traders an men from both the countries on Pakistan B ness Council will be more productive an We have to put businessmen together on Responding to a question about possibl beneQitting each other’s expertise, Amba that both the countries were going to sig ment on technical cooperation in near futu Qinal draft of the agreement is with gov Pakistan and they are making Qinal revision half of my government I will sign the agre may become effective more quickly. Mo have to put our research institutions toge will be helpful in creation of new projec searchers from a Brazilian university are s visit COMSATS Institute quite soon.

While commenting on the current state relations between Brazil-Pakistan, he s lations between Pakistan and Brazil good as Brazil was the Qirst Latin Amer which recognized Pakistan. Even th countries are required to get to k about each other because at presen formation about each other is the This state of affairs is just because that both the countries are situated cally at a very long distance. Brazi know Pakistan as a hospitable country people. He said that Brazilians were fa Pakistan’s ancient culture, but bigger und of both the countries was still lacking. I thi essary for Brazilian traders and businessm ognize Pakistan as a safer investment dest

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ne but it was more modwill promote il. Pakistanat more forecond step. nd businessBrazil Busind positive. a platform. le ways for assador said gn an agreeure because vernment of n and on beeement so it oreover, we ether and it cts. Two rescheduled to

e of bilateral said that rel were very rican county hen both the know better nt lack of inmain issue. e of the fact d geographiilian people y with loving ascinated by derstanding ink it is necmen to rectination.

Tuesday, October 24, 2017

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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

Loss of fiscal consolidation

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ccording to a report issued by the Institute for Policy Reforms, the government has missed all the economic targets for fiscal year 2016-17 and has lost fiscal consolidation which it had gained in recent years. In its Annual Review of the Economy 2016-17, the Institute claims the economy is losing balance in many sectors and the macroeconomic indicators are appearing as a major cause of concern with alarming level of external vulnerability due to high current account deficit of $12.1b or 4 percent of the gross domestic product. The foreign exchange reserves were available only for less than four months imports and they have still been declining. The beleaguered finance minister has claimed that the country would not go to the International Monetary Fund for another bailout package. Mr Dar has rejected all the rumours that the country is facing an economic emergency and would need a bailout package due to depleting foreign exchange reserves. He also denied the news reports that he is resigning from his post.

But all is not well in the country as political chaos is costing the economy billions of rupees daily as investors have held back their money and are waiting for the government policies. The report hopes the next financial year will be the year of economic revival as tax collections have improved by 21 percent, exports are picking up and energy supply has been improved.

However, economists believe the gains could be short lived in the wake of political uncertainty. The economic fundamentals are in the favour of the country which has the economy of over $300 billion. But widening trade deficit are an issue which needs government attention. The country paid $8.15 billion in interest during the last fiscal year, which is 53 percent more than it paid in 2015-16. As a matter of fact, the increasing revenue generation through taxes and duties are not the true barometer of the economy. Rather, it is the industrial output and its sale in overseas destinations which decides the true health of the economy. The report suggests exports again fell by 1.6 percent in 2016-17 after two years of a double-digit decline. It holds that the lack of planning was responsible for the balance of payment problem.

taris and trade A

LAHORE

Dr AFtAB AFZAL

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pparently in its last-ditch effort to curtail the rising import bill and swelling trade deficit of the country, the government has massively enhanced regulatory duties on essential and luxury items, including cars.The shakeup of tariffs and duties will possibly generate additional revenues of Rs 40 billion, but experts believe it will open the floodgates of corruption and smuggling across the country. The part of the decision is also being looked as the violation of automobile policy, which the federal cabinet had approved earlier to attract new in-

vestments in the sector.The current import bill of the country is $53 billion and imposition of tariffs by 350 percent to generate additional revenue of Rs 40 billion or $38 million will not leave any meaningful impact on the import bill.It is yet to ascertain the circumstances that led the government to bring minibudget, but one thing is clear that all is not well with the economy. Financial experts believe the enhancement of duties will put more burdens on the customs and other law enforcement agencies as new duties will bring windfall for smugglers.

The country is already under pressure after the completion of extended facility programme of

the International Monetary Fund programme in September last year. Pakistan faced at least $12 billion current account deficit during the last fiscal year because of sharp increase in imports and continuous decline of exports which plunged to $20.8 billion during the period. According to sources, the external sector of Pakistan will continue to remain under pressure during the current fiscal year and administrative measures of this kind will not yield the desired results.The successive governments in Pakistan are in the habit of launching makeshift policies to resolve longstanding issues and the end result is failure. It is simply unfortunate that

a comprehensive import policy could not be made in the country and the latest move will also likely to be reversed in the coming months. The only way to generate revenue is to enhance trade and industrial activities in the country. Making and breaking laws is a process which confuses traders, industrialists and investors and put the economic activities on halt. The time has come the policymakers and political leaders at the helm of affairs should bring paradigm shift in their approach to generate revenues. Taxes are imposed to regulate and balance trade activities and should not be a source of revenue generation for the country.

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Customs Court approves physical remand of accused LAHORE: The Special Federal Court of Customs Taxation and Anti Smuggling has approved three days physical remand of the accused involved in currency smuggling and handed over him to the customs investigation authorities for interrogation.

Earlier the Customs Preventive has foiled a bid to smuggle huge quantity of foreign currency abroad and arrested two culprits at Lahore Airport.

The Custom sources said that during baggage search of two Bangkok-bound passengers at Allama Iqbal International Airport, $ 25,000 was recovered.

The officials confiscated the recovered foreign currency and arrested the two accused who are being interrogated.

SBp says St collection from poL products declines by 17.7%

Tuesday October 24, 2017

National

Ihc seeks reply from Al haj enterprises in case filed by collectorate of customs

KARACHI

cuStoMS BuLLetIN report www.customsbulletin.com

tate Bank of Pakistan (SBP) has said that the collection of sales tax from petroleum products sharply declined by 17.7 percent in fiscal year 201617. In its annual report on State of Economy, the central bank said that during FY17 the government absorbed most of the increase in international oil prices (which had bottomed out by Q3-FY16) by reducing the sales tax on POL products. “While some upward adjustments to the tax rates has been made, for fullyear FY17, the sales tax collection from POL declined sharply by 17.7 percent to Rs 226.6 billion, from Rs 275.3 billion in FY16,” the SBP said. The SBP said that though POL product prices have been

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deregulated since 2011, when oil refineries and marketing companies were allowed to fix and announce ex-refinery and ex-depot prices of POL products (including motor spirit, HOBC, light diesel oil, and jet fuels). Yet, the government has a considerable control over the fixing of retail prices through changes in sales tax rates.10 The ex-refinery or exdepot prices of POL products for regular consumers consists of ex-refinery import parity price or PSO weighted average cost of purchases, inland freight equalization margin (IFEM), distribution margin of oil marketing companies, dealer’s commission, petroleum levy (PL) and general sales tax on depot price. The government separately notifies the sales tax rates for POL products at varying rates. For example, sales tax on the motor spirit was 20 percent on June 30 2017, while the same was levied at the rate of 14.5 percent and 33.5 percent on HOBC and HSD.

ISLAMABAD

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NAeeM uLLAh tArIQ www.customsbulletin.com

he Islamabad High Court (IHC) issued notices in a case Qiled

by Collectorate of Customs, against M/s Al Haj Enterprises.

The IHC bench comprising Justice Shaukat Aziz and Justice Mohsin Akhtar heard the case. The bench issued notices to the respondent for taking part in the proceedings. The bench had dated in ofQice the hearing of the case for the next week.

Meanwhile, the bench dated in ofQice hearing of M/s Al Catel Lusent Pakistan Limited’s case. M/s Al Catel Lusent Pakistan Limited had Qiled the case challenging an announcement made by the Appellate Tribunal Inland Revenue (ATIR)through which it had sustained decision announced by the department’s adjudication pertaining to the show cause notice to M/s Al Catel Lusent Pakistan Limited for outstanding tax recovery.

Through both the references, M/s Al Catel Lusent Pakistan Limited had named chief commissioner Inland Revenue, LTU, assistant com-

missioner Inland Revenue Withholding, LTU, commissioner Inland Revenue (Appeals), LTU, and Federation of Pakistan through the chairman of Federal Board of Revenue

(FBR) as respondent in the case.

Show-cause notices had been issued for the tax year 2013 in head of income tax under sections of Income Tax Ordinance, 2001.

M/s Al Catel Lusent Pakistan Limited had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard.

FBr officials brief taxpayers on sales tax returns KARACHI

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number of representatives from different organizations including private entities attended a workshop conducted by senior officials of Federal Board of Revenue aimed at to brief the tax payers about filing of Sales Tax Returns and its importance.

An officer of FBR’s Inland Revenue Audit Officer (IRAO) Rafiquzzaman Khan, while discussing different areas of problems when pointed out by the participants in online filling of sales tax returns, said if there was some error while submitting online form, there is an option of manual alternate to every step that can help in making the procedure easy.

Replying to a question raised in

the workshop, he said that if options in online forms were disabled, in such a case Rafiquzzman suggested to file in writing such complaint through Email.

Briefing the participants of the

workshop, RTO’s Computer Programmer Abdul Shakoor pointed out that the purpose of holding this workshop was to educate the relevant persons with knowledge and information on filing of Sales

Tax Returns.

The basic requirements and pre-requisites for e-registration was that Tax Payers must be registered and have an active NTN number.

Abdul Shakoor while explaining different Annex mentioned in the form said that ninety percent of the applicants were not following Annex J properly.

He further said that while filling the form most of the applicants commit mistakes in Annex which results in showing wrong stats to Sindh Revenue Board.

Rafiquzzaman asked the participants not to be hesitated and let him know any information not clear in their minds regarding filing of Tax Returns. The workshop was jointly organized by by Eventspedia and Center of Corporate Trainings (CCT).

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Tariq Iqbal relinquishes charge as Second Secretary Tuesday October 24, 2017

National three Appraising officers granted performance allowance

ISLAMABAD: Tariq Iqbal, a BS-18 officer of Inland Revenue Service, has relinquished the charge as Second Secretary.

The officer, in pursuance of Board’s Notification No.2628-IR-I/2017 dated 20-092017, relinquished the charge of the post of Second Secretary (HRM Wing), FBR (HQ), Islamabad with effect from October 5.

cost Accountant Sajid granted proforma promotion to BS-18

ISLAMABAD

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ISLAMABAD

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hree Appraising officers (BS-16), selected through the process of internal job posting (IJP), have been granted performance allowance. The officers, including Faiza Naeem, Directorate of Internal Audit (Customs), Islamabad; Rabia Samad, Directorate of Internal Audit (Customs), Islamabad and Uzma Naz Satti, Directorate of Training & Research (Customs), Islamabad, were granted performance allowance equal to 100 per cent of minimum of their basic pay (in pay scale-2011) with effect from September 27 i.e the date of approval of the competent authority. The grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. 6(96)S(BIC)/2013-14 dated 06.03.2015 to be read with Para-10 of Finance Division’s O.M.No.1(3)/Imp/2015-360 dated 07.07.2015.

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Abdul wahab assumes charge as Ac-Ir bdul Wahab Sario, an Inland Revenue Service officer of BS17, has assumed the charge as Assistant Commissioner-IR. The officer, in pursuance of Board’s Notification No.2628-IR-I/2017 dated 20.09.2017 relinquished the charge of the post of Assistant Commissioner-IR, Corporate Regional Tax Office, Karachi with effect from September 21 and took the charge of the post of Assistant Commissioner-IR, Large Taxpayer Unit, Karachi on September 22. Meanwhile, Zulfiqar Ahmad, a BS-19 officer of Inland Revenue Service, has assumed the charge as Additional Commissioner-IR. The officer, pursuing the Board’s Notification No 2628-IR/2017, dated 20.09.2017. –CB Report

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ajid Hussain, a Cost Accountant, has been granted proforma promotion to BS-18 along with arrears of pay and allowance.

Consequent upon the approval of Junior Level Committee on FR-17(1) constituted in the Finance Division for payment of arrears of pay and allowances arising from the proforma promotion under FR-17, conveyed vide Finance Division’s O.M. No. 1(04)/FR-17/2017 dated 22.08.2017, the ofQicer, presently working in Model Customs Collectorate, Islamabad, granted proforma promotion to BS-18 with effect from March 13, 2013.

Meanwhile, Syed Hassan Sardar, a BS-18 ofQicer of Inland Revenue

Service, has taken the charge as Deputy Commissioner-IR. The ofQicer, in pursuance of Board’s NotiQication No.2628-IR-I/2017 dated 20-

09-2017, relinquished the charge of the post of Second Secretary (IRPolicy), Federal Board of Revenue (HQ), Islamabad with effect from

October 2 and assumed the charge of the post of Deputy Commissioner-IR (BS-18), Regional Tax OfQice, Islamabad on the same date.

Appraisement east collects rs39.8m as duties & taxes during 21 days of october T

KARACHI

wAQAr AhMeD ANSArI www.customsbulletin.com

he Customs Collectorate of Appraisement East has generated Rs39.08million of customs duty, sales tax, income tax and federal exercise duty during 21 days of October.

Sources told Customs Today that the Customs Appraisement East collected Rs12.98million as customs duty, Rs 10.54million of sales tax, Rs7.78million as income tax and Rs6.36million of federal excise duty during 21 days.

It is pertinent to mention here that the Customs Collectorate of the Appraisement East received Rs24.97million of customs duty, sales tax, income tax and federal exercise duty during the Qirst 14 days of October including Rs8.78million as customs duty, Rs7.85million of sales tax,

Rs4.56million as income tax and Rs3.78million of federal excise duty. If we talk about nine days, so Customs Collectorate of the Appraisement East has collected

Rs12.564million of customs duty, sales tax, income tax and federal exercise duty during the Qirst nine days of October including the collection of Rs3.23million as cus-

toms duty, Rs4.354million of sales tax, Rs2.2million as income tax and Rs2.78million of federal excise duty during the Qirst nine days of the current month.

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Customs Superintendent Yaseen, Inspector Shamas suspended KARACHI: Federal Board of Revenue (FBR) has suspended two Customs officers, posted at Model Customs Collectorate, Silakot.

The FBR suspended Superintendent Muhammad Yaseen and Inspector Shamas-ud-Din exercising powers conferred under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules, 1973 in terms of Article 194-A of CSR with immediate effect.

Judge bars politically-motivated persons from NAB court ISLAMABAD

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n accountability judge on ordered that “politically motivated persons”, including partisan lawyers, should not be allowed to enter the court during hearings of Panama Papers-related references against the Sharif family. In a letter addressed to Islamabad’s District Magistrate, Justice Miangul Hassan Aurungzeb has instructed that only lawyers involved in the on-going graft cases against members of the Sharif family and Finance Minister Ishaq Dar; nominees forwarded by authorised individuals; and 15 court reporters will be allowed to enter the courtroom. “Politically motivated persons” who may “obstruct the court proceedings” will not be allowed to enter, the justice ordered. The directions were

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issued a day before former prime minister Nawaz Sharif, his daughter Maryam Nawaz, and her husband, Muhammad Safdar, are expected to be indicted by an accountability court. During the previous hearing of the graft cases against the Sharif family, the court had been forced to postponed the indictment till Oct 19 (tomorrow) after PML-N lawyers and supporters forcibly entered the court’s building and created mayhem. Just as the accountability court judge, Justice Muhammad Bashir, had entered his courtroom, a number of lawyers associated with the PML-N had forced their way inside and surrounded the judge’s bench, loudly complaining that they had been manhandled by security forces outside the court and prevented from entering the courtroom. In his letter to the District Magistrate, the judge ordered that only 15 court reporters from media houses would be allowed to enter the courtroom to witness the proceedings and that a list of the reporters should be drawn up prior to the proceedings.

National

collector Adjudication Mubashir Baig declares seizure of NDp cloth as legal

Foreign tourists influx increase in pakistan: MD ptDc ISLAMABAD

SAJID NAwAZ

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akistan has attracted a large number of foreign tourists as country has variety of tourist products to offer visitors from the all over the world, mountains, white water sports, hiking areas in Pakistan are ideal for adventure tourists, valleys, deserts, beaches for nature lovers, Buddhist heritage sites of Gandhara, Sikh sacred shrines, Hindu holy temples, Indus valley civilization sites are best-suited for pilgrims, scholars and students, said Managing Director PTDC, Abdul Ghafoor. He said that the tourism sector has been categorized into different types which include religious, adventure, sports and health tourism.

PTDC delighted to have increase influx of foreign tourists . If tourism is promoted in a sustainable manner, there was no terrorism. However, now the situation is completely changed. The improved law and order situation in country has certainly paved the way for positive changes to come, including a healthy influx of international visitors to Pakistan.

Tourism is the only sector after foreign affairs, which can bring people of different countries together, leaving negative perception far behind.

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MULTAN

IMrAN ALI

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ollector Customs Adjudication has issued Order–in-Original (ONO) for the out rightly conQiscation of smuggled art silk As per details, Multan Customs Anti-Smuggling Organization (ASO) had intercepted the loaded truck along with 40 inches container displaying registration number TLG990/Quetta near Sakhi Sarwar police check post Dera Ghazi Khan with the cooperation of Punjab Ranger staff. Multan Customs teams found that truck was loaded with huge quantity of foreign Origin cloth of 18915 kilograms worth Rs.6 million.

The loaded truck was going to Lahore from Quetta and it was booked for said destination from M/s Sitaraal-Masood Khan Goods Transport Company Quetta. Multan Customs Anti-Smuggling Organization asked the driver to produce the import documents which were also reQlecting full load of art silk cloth under the garb of irrelevant customs documents during checking. Customs Adjudication issued many notices to respondents Muhammad Jaffer, Syed Abdul Hameed, Sailab Khan but they

Tuesday October 24, 2017

have never appeared before the collector and nor submitted any written reply to the Show cause notice. During the hearing of the said case it was established that seized cloth are smuggled one and were brought into the country through clandestine

route. Thus the charges levelled by Anti-Smuggling Organization in the show cause stand established. The vehicle has been used exclusively for transportation of smuggled cloth and its owner knew about the nature of the transported goods.

cellular companies pay rs42.5 billion taxes in 5 years

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ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

he five cellular companies operating in the country paid income taxes of Rs42549.3 million during the last five years (2012-13 to 2016-17), official data revealed.

The cellular companies including Zong, Ufone, Mobilink, Telenor and Warid Telecom paid income tax of Rs6419.3 million during the fiscal year 2012-13 while an amount of Rs10,358.3 was paid in 2013-14. Likewise, the cellular companies paid taxes of Rs8286.9 million in 2014-15, Rs8149.5 dur-

ing the FY2015-16 while an amount of Rs9335.3 was paid during the last fiscal year 2016-17, according to the officials data.

As per the data, the highest amount of tax was collected by the government during year 2013-14, followed by 2016-17, 2014-15, then 2015-16 and 2012-13.

Meanwhile giving details about the audit of these companies, officials sources said that audit of these cellular companies was conducted under three tax statues i.e.

Income Tax Ordinance, 2010, Sales Tax Act, 1990 and Federal Excise Act, 2005.

The Audit commences after the

case is selected for audit under section 177/214C of the Income Tax ordinance, 2001, section 72B/25 of the Sales Tax, Act, 1990 and Section 46/42B of FED Act, 2005. Selection is done by both the concerned Commissioner and Federal Board of Revenue which is followed by Audit Manual that prescribe a pre-audit conference with the taxpayer in which scope of audit and time line to complete audit is decided.

Consequently “Information Document Request” (IDRs) is issued for seeking relevant records and information.

After obtaining books of ac-

counts and documents provided by the taxpayer an audit report is prepared and if required a post audit conference is again conducted with the taxpayer to apprise the legal and factual discrepancies.

Thereafter, legal notice to amend the assessment order / return of the taxpayer is issued to provide lawful opportunity of being heard.

After affording such opportunity amended order is passed containing discussion and findings of the tax audit officer, which is served upon taxpayer along with tax demand notice.

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World Customs

Wages increase in Saudi Arabia during Q2

RIYADH: The wages of employees in Saudi Arabia edged higher in the second quarter of this year, the latest figures from the General Authority for Statistics showed. The average monthly wages for Saudi employees increased to 9,911 Saudi riyals in the second quarter of the year, from 9,884 Saudi riyals in the first quarter. However, the unemployment rate among Saudis increased to 12.8 percent in the second quarter, from 12.7 percent in the first quarter, despite government efforts to bring this down.

Tuesday October 24, 2017

customs seizes illegal drugs over Saudi Aramco says no the weekend at ports of entry plans to shelve $2tr RIYADH

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WASHINGTON

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S Customs and Border Protection ofQicers seized hundreds of pounds of illegal drugs over the week, including 25 pounds of cocaine at the Presidio port of entry, ofQicials said. OfQicers working at El Paso-area ports of entry seized about 378 pounds of marijuana, more than 27 total pounds of cocaine, including the 25 pounds seized in Presidio, and seven pounds of methamphetamine over the weekend, customs ofQicials said. One of the largest busts occurred at about 3 a.m. Saturday at the Presidio port of entry, ofQicials said. A 42-year-old woman, who is a Mexican citizen, attempted to drive a 2017 Kia Sportage across the Presidio international crossing when ofQicers selected her vehicle for secondary inspection, ofQicials said. The vehicle

SA inflation rises further than expected outh Africa’s inflation rate unexpectedly climbed back above 5 per cent in September, highlighting the central bank’s struggles to combat sluggish growth at the same time as rapid price rises. The South African Reserve Bank cut interest rates for the first time in five years in August in a bid to boost growth after the economy experienced a brief recession at the start of the year. However, it resisted calls for a second cut last month as evidence mounted that inflation had not been brought completely under control. So-called “stagflation” – stagnant growth combined with high inflation – is a difficult challenge for central banks, as inflation and growth typically move in the same direction, meaning measures to boost sluggish growth risk causing a sharp increase in prices. –CB Report

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was scanned with an X-ray machine, which allegedly showed anomalies behind the engine compartment, ofQicials said. OfQicers drilled in the area of the anomalies and found a white powdery substance, which tested positive for cocaine, ofQicials said. OfQicers found about 13 bundles of cocaine in the compartment,

ofQicials said. The woman was turned over to U.S. Immigration and Custom Enforcement ofQicers. “This seizure reminds us all that a smuggler can be young or old, man or woman, traveling alone or with a family or be driving an old or new vehicle,” CBP Presidio Port Director Michael Neipert said in a statement.

russia central bank mulls “various options” for rate cut next week

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ussia’s central bank will consider various options for the pace of cutting its key policy rate at the regulator’s next meeting on Oct. 27, Central Bank Deputy Governor Ksenia Yudayeva said.

Asked whether it was possible that the regulator will decide to cut its key rate by more than 50 basis points next week, Yudayeva said: “I believe that we have already got accustomed to this pace (of 50 basis

points).” “We will study and consider various options.”

Meanwhile, Russia’s central bank has approved a rescue plan for B&N Bank, including a capital increase and liquidity support, the regulator said on Saturday, without saying how much the Qinancial assistance would cost. B&N was the second private bank rescued by the central bank in less than a month, following Otkritie bank. –CB Report

audi Aramco has dismissed reports that it is considering shelving plans for the world’s biggest ever Qlotation, with the state-owned oil company saying the $2 trillion listing was on track for next year. Amid concerns about the feasibility of such a huge international listing, the company was favouring a private stake sale to foreign governments, including China, the Financial Times reported on Saturday. “All listing venues under review for optimal decision, IPO process is on track for 2018,” the company said on Twitter. The initial public offering forms the cornerstone of the oil-rich kingdom’s reform programme to wean the economy off its reliance on oil revenues.

Saudi Arabia had laid out plans for Aramco’s dual listing on the

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Saudi stock market and an international exchange for 2018, with markets in New York and London vying for the offering. But the company has struggled to select an international venue for its listing with the UK’s market regulator becoming mired in controversy after being accused of watering down the rules in order to clinch the Saudi deal. The FT’s article was followed by a similar report by the Wall Street Journal and Bloomberg. “A range of options, for the public listing of Saudi Aramco, continues to be held under active review,” an Aramco spokesman questioned on the reports told AFP on Saturday. “No decision has been made and the IPO process remains on track,” he said.

Until 2014, oil income made up more than 90 per cent of public revenues in Saudi Arabia. But as it reels from a protracted oil slump, the kingdom is seeking to diversify its economy and privatise some state assets alongside plans to introduce value-added tax.

Meralco sales rise over 4% in 9 months

ales of power distributor Manila Electric Co. (Meralco) went up over four percent in the first nine months of 2017 – a significant growth coming from a high base last year – following a strong third quarter performance, its top official said yesterday. On the sidelines of the executive seminar on fostering dynamic competition in the Philippine power industry yesterday, Meralco president Oscar Reyes said sales volume likely grew between six to seven percent from July to September alone. This was driven by the improved performance across

all sectors – commercial, industrial and residential – supported by a stable economy, he said. “I think the economy that has higher, sustainable trajectory of growth of 6.5 percent plus or minus is reflecting on demand of consumers—residential, business and industry. And if you go around even in Metro Manila, you’ll see quite a number of developments – hotels, restaurants, real estate, retail trade, entertainment. Semiconductor industry is doing well, basic metals are doing well, food and beverage as well,” Reyes said. –CB Report

china’s beef, broiler meat imports projected to rise

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BEIJING

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hina’s beef and broiler meat imports are projected to rise 11% and 7%, respectively, in 2018, according to the latest “Livestock & Poultry: World Markets & Trade” report from the U.S. Department of Agriculture’s Foreign Agri-

cultural Service. However, despite robust Chinese demand, coupled with stagnant or declining domestic production, the report said the opportunity for importing both beef and broiler meat from the U.S. is limited due to restrictions. On the broiler side, the U.S. is currently not eligible to export broiler meat to China due to highly pathogenic avian inQluenza (HPAI) restrictions,

the report explained.

China’s domestic production is forecasted to fall 5% to 11 million tons for 2018. This follows declines in 2017 and 2016 of 6% and 8%, respectively, due to recurring HPAI outbreaks. “The impact on producers has varied,” USDA agricultural economist Tyler Cozzens said.

“Some report only minor impacts due to improved biosecurity, while

others have incurred higher losses due to depopulation, closures of traditional wet markets and soft consumer demand.” China’s 2018 imports are projected to be up for the Qifth consecutive year to a record 480,000 tons, a 7% increase from 2017. According to Cozzens, the U.S. was, until 2009, the primary supplier of broiler meat, with nearly a 75% market share.

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Kandla port to reward creative minds AHMEDABAD: Kandla Port Trust has decided to go in for open competition to decide a logo for its major branding exercise after being renamed Deendayal Port Trust. On Wednesday, the Union Cabinet chaired by Prime Minister Narendra Modi gave an ex-post facto approval to renaming Kandla Port as Deendayal Port.”Ports in India are generally named after the city or town in which these are situated. However, the government, in special cases, after due consideration, has renamed the ports after great leaders in the past,” a statement said. Ravi Parmar, chairman of Kandla port, told TOI, “We want to give creative individuals as well as institutions an opportunity through this open competition for selecting a logo.

Virginia port joins uSDA cold treatment pilot program he Port of Virginia is now a part of the U.S. Department of Agriculture’s Southeast In-Transit Cold Treatment Pilot program designed to import fresh fruit to U.S. East Coast ports from South America. “This designation is important for logistics and supply chain managers importing agricultural products because it means shorter total transit times from origin to market,”John Reinhart, CEO and executive director of the Virginia Port Authority, said in a news release. He said the program will diversify the port’s cargo mix. “It opens the door for new cargo and provides an important service for owners and shippers of perishables,” he said in the release. Under the terms of the pilot, entry of in-transit, cold-treated containers of agricultural products originating in South America are allowed. The list of potential commodities, according to the release, are blueberries, citrus, and

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grapes, apples and pears from Peru, Uruguay and Argentina. Prior to the program’s start in 2013, the perishables were required to enter Northeastern ports for cold treatment and clearance and were then transported to southern states for distribution into stores. Reinhart said in the release that beneficiaries include shippers, who will see lower transportation costs and a longer shelflife for products. Environmental benefits will be achieved with reduced emissions related to transportation. The USDA Southeast In-transit Cold Treatment Pilot enables a limited number of containerized cargoes to enter the port directly after completing a two-week cold treatment process as a safeguard against fruit flies and other pests, as well as acquiring all the required unloading clearances prior to the shipment’s arrival in port. –CB Report

Ports & Shipping

port houston can help customers affected by harvey WASHINGTON

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ort Houston Exec-utive Director Roger Guenther may now waive certain charges for its cargo-moving customers affected by Hurricane Harvey. “We don’t want to penalize the customer due to hardships from Hurricane Harvey,” Guenther said. “That’s it in a nutshell.” He received this new authority during a special Port Commission meeting held Wednesday. If customers couldn’t get their products out of port due to Hurricane Harvey and are asking Port Houston to waive storage fees or other tariff charges, Guenther now has the Qlexibility to consider those requests. He said these decisions will be made on a case-by-case basis to adjust tariff charges. Tariffs describe the charges, rules and regulations for Port Houston facilities.

Port Commission Chair Janiece Longoria added that it provides Guenther “Qlexibility to do something

rational and sensible in light of this catastrophic storm.” Both Longoria and Guenther were in Washington earlier this week pushing for emergency supplemental funding to get the Houston Ship Channel back to its authorized depth and width and to repair dredge disposal placement areas and levies. “We had minimal impacts to our port-owned facilities, but we have signiQicant impacts to the Houston Ship Channel from siltation,” Longoria said. “We have as much as 10 feet of silt in certain

parts of the Houston Ship Channel, as much as 5 feet of silt right here at the Turning Basin.” She said the Texas delegation has been very supportive of that effort. The U.S. Army Corps of Engineers has started emergency dredging to get the channel back to its pre-storm condition, but Guenther said the channel wasn’t completely at its authorized depth and width before Hurricane Harvey. Longoria added that the Houston Ship Channel needs more than one dredge to do the work.

Tuesday October 24, 2017

Shipping activity at port Qasim .T Epic Sicily carrying LPG took berth at Engro Vopak Terminal.

Meanwhile two more ships, Oil tanker Anggreik and Bulk cargo carrier Yasailhan carrying 61,124 tonnes LSFO and 42,713 tonnes Coal also arrived at outer anchorage of Port Qasim during the same day. Berth occupancy was observed at the 59%on Wednesday where a total of ten ships namely APL Charleston, Maersk Kensington, Da Dan Xia, Sinar Kutal, Epic Sardinia, Three Saskias, As Olivia, Epic Sicily, AlJassasiya and Lion-M were occupied at PQA berths to load/offload Containers, General Cargo, Coal, Soya Bean Seeds, Phosphoric Acid, LPG, LNG and Furnace oil respectively during last 24 hours. A cargo volume of 85,842 tonnes, comprising 66,880 tonnes import cargo and 18,962 tonnes export cargo inclusive of containerized cargo carried in 1,363 containers (TEUs), (365 TEUs imports and 998 TEUs exports) was handled at the port. Four ships C.V APL Charleston, M.V Da Dan Xia, M.T AlJassasiya and Lion-M sailed out to sea on morning. –CB Report

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port of Dover’s $330m revival takes shape WASHINGTON

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ort of Dover has revealed a video showing how far the US$ 330 million Dover Western Docks Revival (DWDR) project development has progressed since the Qirst stage of construction began in January 2017. The project is the single biggest investment ever undertaken by the port and is the next stage of its evolution in becoming a key international gateway for handling trade to the value of $157 billion and representing up to 17% of UK trade in goods.

DWDR will provide a new cargo terminal and new port-centric distribution facility transforming cargo and logistics operations, and through the creation of a new marina will transform the waterfront and attract inward investment into the area. A

consortium of leading British and European lenders agreed a $264 million package of loans to support the Port of Dover’s Qlagship capital building programme. In addition to bespoke cargo and logistics facilities, Dover Western Docks Revival will also allow the port to create a dedicated ferry terminal in the Eastern Docks and a transformed waterfront for Dover. Port of Dover Chief Executive, Tim Waggott, said: “Dover Western Docks Revival is the single biggest investment ever undertaken by the Port of Dover. It will deQine how we operate for decades to come.

“Currently handling 17% of all the UK’s trade in goods, it is crucial the Port continues to evolve to meet the demands of an ever-changing political and trading landscape. “The Qinancial support supplied by blue chip lenders underlines the critical role Dover fulQils for UK and European economies, businesses and con-

sumers. “A prominent role which will remain into the future post Brexit.”

Meanwhile, The Adani Group-owned Mundra Port has hit a new productivity milestone, ramping up competition with with its public rival Jawaharlal Nehru Port Trust (JNPT) as it prepares to open a fourth mega-terminal. Adani International Container Terminal (AICTPL), a joint venture between Adani Group and Mediterranean Shipping Co., loaded and discharged a total of 10,254 TEU — touted as the largest-ever lift on a single sailing at an Indian port — when it serviced the MSC Bruxelles last week. The 337-meter (1,106foot) Bruxelles has been deployed in MSC’s newly launched and independent ‘INGWE’ service connecting Asia, the Gulf, and Africa. The weekly service calls Ningbo, Shanghai and Shekou, China; Singapore; Colombo, Sri Lanka; Port Louis, Mauritius; Durban and Coega, South Africa; Salalah,

Oman; Jebel Ali, United Arab Emirates; Karachi, Pakistan; Mundra, Nhava Sheva (JNPT) and Hazira, India; Colombo; and back to Ningbo.

The new milestone broke the previous high of 8,703 TEU achieved on the MSC Fillippa that called AICTPL in September last year, according to a company statement. MSC has been steadily upsizing its tonnage in Indian trades with larger vessels, and the 9,200-TEU Bruxelles call builds on that trend. MSC and Adani in January 2016 reached an agreement to extend AICTPL’s quay by 2,132 feet to 4,790 feet and add 15 super postPanamax quay cranes, doubling annual capacity from 1.5 million TEU to 3.1 million TEU. The 50:50 venture, which was set up in 2013, has been a key factor in Mundra’s strong growth in recent years, as the Geneva-based liner has been using AICTPL for its transshipment trafQic in the Indian Subcontinent region.

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Import of CBU vehicles surges by 44.57pc in Q1 Tuesday October 24, 2017

Business

KARACHI: Import of completely built up (CBU) vehicles has surged by 44.57 percent in first quarter of current fiscal year due to high demand in the local market.

According to data the import of CBU vehicles increased to $206 million during July – September 2017 as compared with $142.28 million in the corresponding quarter of the last fiscal year.

The import of CBU heavy vehicle although registered decline by 16.62 percent but on the other hand the import of motor cars and motorcycles posted massive growth of 99.38 percent and 395.6 percent, respectively.

Shc orders Sharjeel Memon’s arrest KARACHI

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he Sindh High Court (SHC) on Monday ordered arrest of Pakistan People’s Party (PPP) leader Sharjeel Inam Memon after his interim bail application was rejected in a corruption case.

The PPP leader, along with former information secretary ZulQiqar Shalwani, and others, is facing a graft reference to the tune of Rs5.76 billion Qiled by the National Accountability Bureau (NAB) in an accountability court.

During Monday’s hearing, Memon and other suspects appeared before the court and re-

Four human traffickers held FAISALABAD

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quested for grant of extension in bail but the SHC chief justice turned down their bail pleas.

Later, Memon Qiled another ap-

projects worth rs2.25b to promote modern irrigation system: Minister

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n FIA team has arrested 4 human trafficking, According to an FIA officials, Allay Yar and Zafar Iqbal of Jhang has received Rs 3.5 lac from Aqeel Raza of Jhang, for sending him Saudi Arabia. Similarly, Ambreen Sehar of Faisalabad, filed a complaint against Kashif Saeed and Sohail Babar of Lahore, over receiving Rs 7 lac for sending the complainant’s family to Canada. The FIA teams conducted raids and arrested Allah Yar, Zafar Iqbal, Kashif Saeed and Sohail Babar.

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plication to the SHC chief justice, seeking a stay on his arrest by NAB ofQicials. Sources said the PPP leader was staying inside the courtroom to

avoid arrest. A two-member bench of the court will hear the fresh application shortly.

The former provincial information minister who had returned from self-imposed exile in March this year, had obtained protective bail in April in connection with an inquiry initiated by the top graft buster.

Memon had Qled the country in 2015 to Dubai after the anti-corruption watchdog launched a crackdown against corrupt political Qigures and bureaucrats as part of the Karachi operation.

The national anti-graft watchdog later Qiled a reference in the accountability court regarding the alleged corruption in the advertisements campaign of the provincial information department.

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LAHORE

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rovincial Agriculture Minister Naeem Akhtar Khan Bhabha said the Punjab government had launched projects worth Rs 2.25 billion to promote the modern system of irrigation and technology suitable for weather conditions.

He said the ongoing projects including Drip/Sprinkle irrigation system, upon which, the government was providing 60 percent subsidy, installation of tunnel on

which 50 percent subsidy was being provided while 80 percent subsidy for running drip irrigation system on solar system. Naeem Akhtar Khan Bhabha said that from fiscal year 2016-17 to uptil now, drip irrigation system had been installed on more than 11000 acres of land, tunnel farming on more than 350 acres of land, whereas on an area of more than 1500 acres drip/sprinkle irrigation system for solar system had been installed.

“Water is very essential for the growth of crops and the government in real sense making sincere

efforts to facilitate farmers in boosting the yield of different crops”, he added. The minister further said the Punjab government had given historic package worth billions of rupees for the development of agriculture sector and prosperity of the farmers and each penny of the package was being spent on the welfare of farmers efQiciently.

Under the agriculture package, farmers were being given relief at their doorsteps. On the other hand, interest free loans amounting to billions of rupees were being provided to small farmers on easy terms.

oil tankers association goes on countrywide strike KARACHI

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ll Pakistan Oil Tankers Owners Association has announced to observe strike across the country from Monday against ‘cold shoulder’ given to their demands by the Oil and Gas Regulatory Authority (Ogra). The oil tankers association has taken to the strike mode after their demands were apparently overlooked by the Ogra, and resultantly supply of petroleum products across the country is likely to be affected, as the movement of more than 20,000 oil tankers in the country would be stopped. In July this year, the All Pakistan Oil Tankers Owners Association (APOTOA) and Oil Tankers Contractors Association (OTCA) had jointly given a strike call that continued for over three days, disrupting the supply of petroleum products from Karachi to the entire country in protest against what they called stringent regulations relating to fitness of their vehicles and fines by the Motorway police. The stringent regulations were placed on oil tankers after the OGra had blamed the association for failing to meet certain necessary requirements for their tankers including fitness certificates.

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ApBF rejects recently imposed regulatory duty LAHORE

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he All Pakistan Business Forum has rejected the imposition of additional regulatory duty on import, saying the government neither can impose any duty nor enhance taxes without the approval of the parliament.

The regulatory duty was imposed by the government on 731 items in-

cluding industry raw material without taking the business community on board who are the real stakeholders. APBF president Ibrahim Qureshi said that this is not the right way to curtail trade deQicit, rather it is just a mini-budget announced in half way of the Qinancial year.

He said that the government should not have enhanced the import duty on industry raw material and inputs for manufacturing of local products as it would cause fur-

ther dip in exports due to rise in production cost.

Ibrahim Qureshi said that the APBF had been calling for consultation before imposition of such duty but authorities did not bother to approach the stakeholders in this regard and imposed the decision unilaterally. He said that imposition of additional regulatory duty on various essentials is nothing else but to encourage smuggling of goods like chemicals and tyres that is already

damaging the economic base of the country. He said that additional regulatory duty will increase the prices of even necessary raw materials and other essentials for the trade and industry. He said that the APBF always supports reduction of luxurious item’s imports but also demands that imports of those raw materials and goods should not be hampered that are not being manufactured in the country. Ibrahim Qureshi said that the decision shows lack of planning

on the part of the policy-makers, creating problems for business activities and putting extra burden on the masses. He said the additional regulatory duty on several eatable items including fruits and vegetables would increase import bill, widening trade deQicit further instead of controlling import. Terming it an unwise decision, which would unleash a new wave of inQlation in the country, he said the move will affect growth of business activities.

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Banana imports top $260 million TEHRAN: Around 347,000 tons of fresh green or dried bananas worth $267 million were imported into Iran during the first half of the current Iranian year (March 21-Sept. 22), registering a 40% rise in both volume and value compared with the corresponding period of last year, figures released by the Islamic Republic of Iran Customs Administration showed.

As such, banana imports account for 2.02% and 1.13% of Iran’s total amount of imports over the six-month period, Eranico reported. The UAE, Turkey, Ecuador, Sri Lanka, India and Philippines were the main countries from where the fruit was imported.

FBr should focus on early payment of refund claims LAHORE

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Chambers

rto assures to reactivate tAc to resolve issues of businessmen

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uge obstacles like double taxation and irking delay in refunds would not let economy of Pakistan grow therefore government must remove these hurdles for the sake of business community. This was stated by the LCCI President Malik Tahir Javed while addressing the delegation of Ferozepur Road Industrial Welfare Organization (FRWO) at the Lahore Chamber of Commerce & Industry. The LCCI Senior Vice President Khawaja Khawar Rasheed, Vice President Zeshan Khalil, Chairman FRWO Mian Abdul Razaq and LCCI executive committee member Adeeb Iqbal Sheikh also spoke on the occasion. The LCCI President said that businessmen want to act for economic boom provided they are given space for

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doing business smoothly. He urged the Federal Board of Revenue (FBR) look into the matter of double taxation that hitting the business community hard.

He said that the major issues faced by the taxpayers at present due to non-collaborations between various taxation bodies (FBR, PRA, SRB, etc.) are jurisdiction disputes, double taxation between provinces, non-uniformity of provincial laws, structural issues in Provincial Revenue collection bodies, and overall lack of collaboration and harmonization The LCCI President suggested that in order to facilitate the taxpayers, the business environment and thereby the provincial economies, there should be harmonization and collaboration between Provincial revenue collection bodies (PRCB) as well as with the FBR, standardization of general tax treatments in the jurisdictions of various PRCB and FBR, standardization of sales tax rates.

ISLAMABAD

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abib Ullah Khan, Chief Commissioner Inland Revenue, Regional Tax OfQice, Islamabad said that tax advisory committees were effective tool to address tax problems and improve tax revenue and he would soon reactivate Tax Advisory Committee in Islamabad comprising representative of RTO Islamabad and ICCI to resolve the tax related issues of the local business community. He said this while speaking at Islamabad Chamber of Commerce & Industry. He visited ICCI along with Freedon Akram Sheikh Commissioner IR Withholding Tax Zone, Abdul Hameed, Commissioner IR East Zone, Ms. Aisha Farooq Commissioner IR West Zone and Muhammad Waqas Hanif Additional Commissioner IR. The Chief Commissioner said that he would work with ICCI to identify new taxpayers and expand tax base in Islamabad. He said judicious taxation, bridging gap between taxpayers and tax collectors and broadening the tax would be

the key focus of his efforts. He said that government wanted a business friendly tax culture to broaden the tax base and assured that no coercive measures would be taken against taxpayers and tax would be collected with friendly approach. He said if any taxpayer had any genuine complaint, his doors would be opened to address such complaints.

Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry highlighted the tax related issues

being faced by the business community and sought the cooperation of Chief Commissioner to address them. He said tax advisory committee should be revived forthwith that would help in addressing issues and improving conQidence between taxpayers and tax collectors. He said measures like attachment of taxpayers’ bank accounts for recovery, repeated selection of a taxpayer for audit, keeping audit cases pending for long periods, issuing late notices to taxpayers and raiding business

rccI & ppA celebrates world egg day RAWALPINDI

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he Rawalpindi Chamber of Commerce and Industry (RCCI) in collaboration with Pakistan Poultry Association organised a seminar on ‘Importance of Eggs for Human Health’ to celebrate the World Egg Day with an aim to create public awareness about the nutritional value and the importance of eggs for human health.

In his address, Dr Muhammad Aslam Chairman PPA and Dr. Muhammad Sadiq CEO Sadiq Group said eggs have a vital role to play in feeding people around the world, in both developed and developing countries. The eggs have excellent and affordable source of high quality protein, with the po-

tential to feed the world, he added.

Speakers stressed that efforts should be made to make people aware of the above facts to increase egg consumption to ensure the good health of people because only a healthy generation can take a country to the pinnacle of progress and prosperity. President RCCI Zahid Latif Khan in his address urged government to lower taxes on poultry feed and machinery. The poultry industry has been increased remarkably and with soft and trader friendly policies we can export eggs and chicken, he added. He said that there is a need to bring awareness among masses regarding nutrition and use of eggs and chicken in daily meals. There are certain misconceptions among women regarding side effects of eggs and chicken on health. This has to be removed as egg is a com-

plete food. Poultry industry has grown up to 750 billion and around 2.5 million people are associated with it. Former president Dr Hassan Sarosh said that per capita per year consumption of poultry meat is very low in Pakistan. Its just six to seven per kilogram per year where as in Saudi Arabia its more than 50Kg and in USA its 150kg. Pakistan is facing severe nutrition challenge and government should act promptly here. Earlier, in connection with World Egg Day, cooking competition was also held at RCCI. In which large number of staff members were participated. Senior Vice President Nasir Mirza, Vice President Khalid Farooq Qazi, former presidents, members of the executive committee, student from academia, and large number members attended the awareness session.

premises should be avoided because such tactics have always created unnecessary harassment in business community and discouraged tax culture. He said high tax rates should be revised that would help in improving tax revenue. Muhammad Naveed Senior Vice President and Nisar Ahmed Miraz Vice President ICCI said that before taking action against any local taxpayer, RTO Islamabad should take ICCI on board so that issues could be resolved with mutual efforts.

Businessmen group, kccI to celebrate 20 Years of public Service he Businessmen Group and the Karachi Chamber of Commerce & Industry (KCCI) will celebrate 20 years of “Public Service” to the Business and Industrial Community and Karachiites at a captivating and glittering ceremony at Baradari.

According to a statement issued, the Celebration will be attended by Chief Minister Sindh Syed Murad Ali Shah along with his entire Cabinet whereas prominent dignitaries, top government functionaries, heads of law enforcing agencies, and members of diplomatic corps will also be present on the occasion. Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli commented that since 1998, the Businessmen Group has been constantly winning KCCI’s election. –CB Report

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Customs authorities seized smuggled goods worth Rs.55.5m PESHAWAR: Customs Collectorate Peshawar in different activities foiled the smuggling bids of illegal items worth Rs.55.2 million.

The seized goods were included non-duty paid vehicles, foreign manufactured cloth, bed sheets, mobile-chargers, tyrs, cigarettes, wielding rods and other items.

According to a press release, on the directives of the Collector Customs, Peshawar Gul Rehman, the customs authorities had tightened the noose around smuggling and accelerated operation in this regard.

Tuesday, October 24, 2017

CUSTOMS BULLETIN

Mcc collects rs186m more duties & taxes than assigned target in 15 days of october QUETTA tArIQ DerYA

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he Model Customs Collectorate (MCC) Quetta generated additional revenue of Rs186.00million as all duties and taxes against the allocated revenue collection target during the first 15 days of October Financial Year 2017-18 under the same head. The collectorate received Rs810.00million under all the heads during 15 days of October FY17-18 while it was assigned Rs624.00million of proportional target for said period under all the heads.

According to details given by Ashraf Ali, Collector Model Customs Collectorate (MCC) Quetta, that, during initial 15 days of October FY1718, the collectorate earned Rs330.00million of Customs Duty (CD) against the earmarked proportional target of Rs273.5million. The collector told CT that the MCC Quetta has been allocated a target of Rs547.00million as CD for the whole month of October FY17-18.

During above said period, the collectorate of Quetta collected Rs323.00million of Sales Tax against the assigned proportional target of

Rs226.00million as ST from 1st to 15th of October FY17-18. The collectorate was earmarked the revenue collection target of Rs452.00million under the same head for the whole current month.

During the Qirst 15 days of October FY17-18, the collectorate of Quetta generated Rs16.00million of Federal Excise Duty (FED) against the assigned proportional target of Rs11.00million. The collectorate of

Quetta was allocated Rs22.00million as FED for the whole month of October FY17-18. The Quetta Collectorate received Rs141.00million during initial 15 days of October FY 17-18 under the head of Withholding Tax

(WHT) while it was earmarked a proportional target of Rs113.5million under the head of WHT whereas the Collectorate of Quetta was assigned Rs227.00million of WHT for the whole month of October FY17-18.

Secretary briefed on counter-narcotics endeavors of ANF ISLAMABAD

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ecretary, Ministry of Narcotics Control, Iqbal Mehmood paid his first formal visit to Headquarters Anti Narcotics Force, Rawalpindi after assuming the charge of Secretary MNC. He was welcomed by Director General ANF, Major General Musarrat Nawaz Malik, HI (M)

and Senior Staff Officers of ANF. The secretary was briefed on counter-narcotics endeavors being rendered by ANF, professional achievements, current drug situation and major challenges being faced with regard to trafficking of narcotics, precursor chemicals and psychotropic substances. He was apprised that ANF is also vigorously undertaking drug demand reduction campaigns through public awareness drives and community participation activities

throughout Pakistan; apart from running rehabilitation centers providing free of cost treatment to drug addicts.

It was briefed that during year 2017, ANF has registered 944 drug related cases, arrested 1067 offenders and seized 97693 kg Hashish, 31803 kg Opium, 26664 kg Heroin, 386 kg Cocaine, 1896 kg Synthetic Drugs, 89 kg Psychotropic Tablets and 56007 kg Precursor Chemicals. Moreover, ANF in its course of drug demand reduction programmes, has carried out 230 awareness

raising activities against drug abuse and treated 573 drug addicts at its drug treatment centers being run at Islamabad, Karachi and Quetta.

The secretary was informed about construction of Female and Juvenile Drug Treatment Ward within existing Model Addicts Treatment and Rehabilitation Centre (MATRC) Karachi, construction of MATRC Peshawar in collaboration with KP government and establishment of MATRC at Sukkur.

He was also informed about the organizational require-

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ments of ANF with respect to enhancement of manpower, development of infrastructure, increase in number of police stations, acquisition of latest technology and establishment of more drug treatment centers in the country. The secretary lauded ANF’s achievements and its role as a specialized force in combating trafficking of illicit drugs at national, regional and global level. He assured his all-out support to ANF for addressing the inadequacies of the force to tackle the menace more vigorously.