Wednesday, 25 October 2017

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Karachi, Wed October 25, 2017

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he North Region earned surplus revenue of Rs533.79million during the 1st to 15th of October Financial Year 2017-18 under the heads of all duties and taxes against the collection of all duties and taxes during the same period of corresponding Financial Year. The North Region showed 45.37% growth under all the heads

in revenue collection during the initial 15 days of October FY17-18 against the same period of FY16-17.

According to details explained by sources that, during the initial 15 days of October FY17-18, the North Region, which comprises Collectorates of Islamabad, Samberial, Peshawar and Gilgit-Baltistan, generated revenue of Rs1710.32million under all the heads against the collection of Rs1176.53million under the same heads during the last FY16-17. The North also showed surplus collection of Rs12.93million

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under all the heads against the assigned proportional (1st to 15th October FY1718) revenue target of Rs1697.39million.

Regarding the surplus collection during the Rirst quarter FY17-18, sources said the Customs North Region received surplus revenue of Rs1553.14million of all duties and taxes against the allocated revenue collection target for the Rirst quarter (July to September) FY 2017-18.

The North earmarked Rs7625.63million under all the heads while it collected Rs9178.77million during 1st-Q FY17-18.

ASO takes into possession offending vehicle loaded with spices and dry fruits

DG Valuation revises customs values of whey powder vide VR No 1217/2017

Customs I&I impounds 365 bags of coconut during routine checking

NAB initiates probe against Shehbaz over graft allegations

About 120,000 pouches of India made Gutka seized by Customs Preventive

ASO, MCC impounded various smuggling goods along with an oending vehicle | SEE pAgE 02 |

DG of Customs Valuation has revised the customs values of whey powder | SEE pAgE 03 |

Customs I&I team during routine checking recovered 365 bags | SEE pAgE 04 |

NAB ordered an inquiry into the corruption allegations levelled against CM Punjab | SEE pAgE 11 |

ASO Sukkur, has confiscated foreign origin eight bundles and 120,000 pouches | SEE pAgE 16 |

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FST seeks reply on complaints filed by FBR employees Wednesday, October 25, 2017

Islamabad

ISLAMABAD: Federal Service Tribunal directed the Federal Board of Revenue to submit reply in cases of ‘special allowance’ and ‘implementation’ filed by employees of Federal Board of Revenue (FBR).

FST bench comprising Members Ishtiaq Ahmed and Dr Nazir Saeed held hearing. The bench heard arguments on case of special allowance filed by Muhammad Boota and cases filed by M Waheed, Anjum Rasheed, Sardar Ali and Muhammad Ferozuddin.

ASo takes into possession offending vehicle loaded with spices and dry fruits

ISLAMABAD

ISLAMABAD

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n a bid to achieve overall objectives of broadening the tax base, the Tax Reforms Commission (TRC) has proposed ‘spot assessment’ of unregistered or new taxpayers to bring them into tax net.

The idea of “spot assessment” was discussed during the last meeting of TRC, which was held by the Federal Board of Revenue (FBR) . TRIC discussed idea of “spot assessment” of unregistered or new taxpayers with right to file an appeal after payment of 50 percent of the tax demand raised against them by the FBR. The FBR Member (Legal) argued that negligible tax returns were filed in response to FBR notices, which necessitate that the provision of “spot assessment” should be undertaken with right to file an appeal after payment of 50 percent of the tax demand. Tax authorities argued that capturing and utilization of data related to property could prove to be of great benefit. The FBR has also started a new exercise in Karachi to register potential taxpayers on the basis of TR (Temporary Registration) numbers for which legal cover has been provided under the law.

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he Anti-Smuggling Organization, Model Customs Collectorate Islamabad, impounded various smuggling goods along with an offending vehicle en route from Peshawar to Rawalpindi on GT Road. The value of the items and vehicle is Rs1.4million.

According to details explained by Assistant Collector Majid Hussain Gadd while talking with Customs Today that, on a tip-off shared by Dr. Saeed Khan Jadoon, Collector Model Customs Collectorate Islamabad, the Anti-Smuggling Squad (ASO) Islamabad intercepted a Mazda Mini truck with registration No: 8273 loaded with huge quantity of dry fruits and spices and other smuggling items.

A thorough search of the above said vehicle led to the recovery of 650 kg of smuggling foreign origin aluminium foil, 494 kg of Rly wheel, 240 kg of almond, 1,240 kg of dry Rig, 1,508 kg of apricot, 930 kg of almond without shell, 396 kg of dry fruit, 425 kg of Kishta Giri, 1,800 kg of cumin and 891 kg of waste cumin.

As the possessor of abovementioned goods failed to produce any proofs, documentary or otherwise, showing legal possession of the recovered smuggling items, the ASO took into possession goods along with the abovemention offending vehicle and

Tax Reforms commission wants spot assessment of new taxpayers

brought them to state ware house for further investigation. The ASO lodged an FIR while the case was forwarded to the Investigation and Prosecution Department for further investigation.

The ASO squad, who made seizure, comprised Superintendent Abdul Malak, Inspector Hafeez and other supporting staff. The value of the conRiscated items is Rs0.4million while the worth of the offending vehicle is

Rs1.00million approximately. Meanwhile, The Anti-Smuggling Organization (ASO) Islamabad impounded seven offending vehicles and various kinds of foreign origin smuggling goods valued at Rs12.12million during 7th to 13th of October Financial Year (FY) 2017-18. According to details explained by Assistant Collector ASO Majid Hussain Gadd while talking with Customs Today that, during above said

period, the ASO showed outstanding performance against tax evaders and smugglers. The ASO impounded seven offending vehicles (Vehicles used for carrying smuggling goods) worth Rs6.6million. Assistant Collector told CT that, during of October, the ASO seized 2,973 kilogram of foreign origin fabric priced at Rs1.55million whereas it did 250,000 fake foreign origin cigarettes valued at Rs0.78million.

Ihc seeks record on petition filed by m/s Al-haj Enterprises

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ISLAMABAD

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slamabad High Court directed Collectorate of Customs to submit record of proceedings pertaining to a customs reference involving M/s Al-Haj Enterprises.

IHC division bench comprising Justice Shaukat Aziz Siddiqui and Justice Mohsin Akhtar Kayani heard the case. MCC had Riled this case against M/s Al Haj Enterprises. The

bench had earlier directed the counsels to submit related record prior to next date of hearing. This case was pending with the court since 2013.

The bench also dated in ofRice hearing on another customs case submitted by Malik Nasri Khan.

Khan Riled the matter against Custom Appellate Tribunal, Islamabad.

Khan had challenged an announcement of tribunal in which it had sustained MCC’s decisions regarding customs duty in imported goods.

The same bench also issued no-

tices to parties regarding assisting court on the matter of M/S Hasas Engineering and Construction Company Private Limited. The appellant had challenged the act of recovery of said amount by Commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty.

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FBR okays additional funds for performance allowance KARACHI: The Federal Board of Revenue (FBR) has okayed provision of additional funds under the head ‘performance allowance’ in pursuance of judgment of Supreme Court of Pakistan.According to Supreme Court, “If the Services Tribunal or Supreme Court decides a point of law relating to the terms of service of a civil servant which covers not only the case of civil servant who litigated, but also of other civil servants, who may have not taken any legal proceedings, in such a case, the dictates and rule if governance demand that the benefit of such judgment be extended to other civil servants, who may not be parties to the litigation instead of compelling them to approach the service tribunal or any other forum.

Shc adjourns hearing of Rs808m fauji cement case till 31st

Wednesday October 25, 2017

Karachi

Dg Valuation revises customs values of whey powder

KARACHI

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indh High Court has adjourned the hearing of a case pertaining to import of machinery by Fauji Cement involving custom duty and taxes worth Rs808 million on Oct 31. The bench heard a suit 517/2014 filed by Fauji Cement Factory against a demand raised by the Pakistan Customs, Appraisement in which an interim stay is operative. Masooda Siraj advocate assisted by Sardar Zafar Hussain submitted that since stay order was obtained, the plaintiff side is avoiding to proceed with the matter. She maintained that a huge sum of Rs808 million in duty and taxes is involved pending since 2014.

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Adjudication-I recovers Rs 2.12m from m/s hudiaba KARACHI

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he Customs Adjudication-I has recovered Rs 2.12 million from M/s Hudiaba Enterprises. The company was found involved in tax evasion. Sources told Customs Today that Collector Customs Adjudication-I Mohammad Javed sent a show-cause notice to M/s Hudaiba Enterprises for allegedly causing a loss of Rs 2.12 million to the national kitty by way of mis-declaration of classification on September 28, 2017. According to sources, M/s Hudaiba Enterprises imported a consignment of computer accessories (branded CPU Pantium D, hard drive and more things) and got them cleared by mis-declaring the classification under Pakistan Custom Tariff (PCT) from Pakistan International Container Terminal (PICT).

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KARACHI

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he Directorate General of Customs Valuation has revised the customs values of whey powder (H.S.Code:0404.1010) vide Valuation Ruling No 1217/2017 under Section 25-A of the Customs Act, 1969.

Customs values of whey powder were earlier determined through Valuation Ruling No.789/2016 dated 08.01.2016. There was representation from the Head of Economics Department, Embassy of France through the Federal Board of Revenue Islamabad for re-determination of customs values of whey powder afresh.

They claimed that the prices of whey powder of France origin are lower in the international markets than the customs value determined in the existing valuation ruling, which is over one year old, hence it is required to be revised in the light of Sindh High Court, at Karachi’s orders dated 10.11.2015. Since 90 days have passed and representation is received regarding values determined in the valuation ruling dated 08.01.2016, hence an exercise was initiated to re-determine the values of the subject items.

Meeting was held on 09-10-2017 with the stakeholders to discuss the current international market prices of the subject goods. All the commercial importers requested that the said

valuation ruling may be reviewed in the light of prevailing international market prices. They contended that the Customs Values determined in the valuation ruling dated 08-01-2016 are required to be revised downward.

Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the particular valuation issued at hand. The transaction value method provided in SubSection (1) of Section 25, was found

Valuation methods provided in Section 25 of the customs Act, 1969 were duly applied in their regular sequential order to address the particular valuation issued at hand

court directs file comments on acquittal petition

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KARACHI

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he Customs Court Judge Syed Faiz Rasool Rashdi directed parties to submit para wise comments on an acquittal petition under section 265 k CRPC filed by suspect namely Malik Aziz Ahmed son of Malik Gulam Yasin, who was booked in a tax fraud case.

During the hearing, counsel

for customs department seeks time to submit comments therefore, court adjourned the matter and directed parties to submit their comments on next date of hearing.

Earlier, counsel for the suspect moved an acquittal petition and argued that his client was falsely booked in this case and prosecution has failed to prove charge against his client and no concrete evidence has been produced by prosecution in this

court, therefore, his client is innocent and court may acquit him. After the hearing, court had issued notices to customs department and directed them to file their respective para wise comments on next date of hearing. According to the prosecution, case was registered against above mentioned accused and other person’s involvement in tax fraud and evasion of duty and taxes for violation of Custom Act, 1969.

inapplicable because it is generally known to all that majority of invoices produced at import stage are manipulated/fabricated and hence the requisite information required under the law was not available to arrive at the correct transaction value. Identical / similar goods value method provided in Sub-Sections (5) & (6) of Section 25 ibid were examined for applicability to determine Customs value of subject goods, this data provided some references.

ST exemption granted to 3 textile units ederal Board of Revenue (FBR) has allowed sales tax zero-rating on supply of electricity to three textile units based in Faisalabad. The FBR issued three Sales Tax General Orders (STGOs) Nos. 136, 138 and 139 to allow sales tax zero rating. The units, including M/s Best Fibres (Pvt) Limited, M/s Usman Fabrics and Aamar Weaving, have been allowed the facility on consumption of electricity.

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LHC seeks reply on extra sales tax on petroleum products Wednesday October 25, 2017

Lahore

LAHORE: Lahore High Court (LHC) seeks reply from the federal government and Oil and Gas Regularity Authority (OGRA) in case filed against the extra sales tax on the petroleum products.

According to the details, Lahore High Court (LHC) heard the appeal filed by the appellant Azher Saddique advocate against the extra sales tax on the petroleum products.

Appellant filed intra-court appeal in the Lahore High Court (LHC) that besides the lower in prices of petroleum products in international market the prices in Pakistan are still high. Adding more that government has collecting 55 percent sales taxes on petroleum products instead of 17 percent.

customs Tribunal set aside ono, remanded back appeal of humayun LAHORE

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ustoms Appellate Tribunal has set aside the impugned order in appeal filed by the Humayun Akber and Tahir Khan against Collector of Customs (Adjudication) Lahore.

Omer Arshed Hakeem Member Judicial Bench-II heard the case in details and passed the order that tribunal have no option to set aside the impugned order and remanded back the instant customs appeal back to the adjudication officer with the direction to pass the fresh speaking order strictly in accordance with law after providing opportunities of caring to both the parties and receiving evidence which they may like to produce.

four human traffickers held n FIA team has arrested 4 human trafficking, here on Saturday. 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. Meanwhile, The Federal Investigation Agency (FIA) Faisalabad team on Monday arrested an accused for defrauding people.

According to the FIA spokesman, accused Muhammad Mukhtar of Jaranwala received Rs 340,000 from Muhammad Asghar and Rs 380,000 from Abdul Majeed for employment visa of abroad. –CB Report

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According to the brief facts of case the staff of Customs ASO Lahore after obtaining search warrant as envisaged under the section 162 of Customs Act 1969 visited the premises of godown of Bhatta Stop.

During the visit huge quantity of foreign origin generators was available at the premises. The available two persons claimed the ownership of these generators.

On demand the available persons fail to produce documents regarding lawful import of generators and the same were seized under the section 168(1) of Customs Act 169. After show cause notice, adjudication authority heard the case and passed the Order in Original that goods are redeemed to the lawful owner on the payment of duties and taxes and also Rs 7, 00, 0000 imposed in penalty.

customs I&I 365 bags of coconut during routine checking LAHORE

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irectorate of Customs Intelligence and Investigation (I&I) team during routine checking near Kala Shah Kaku recovered 365 bags of non duty paid coconut which were being smuggled through a Mazda truck.

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 Deputy Director Usman Tariq, Superintendent Saleem Khan, Intelligence OfRicer ZulRiqar Dogar, Nadeem Ihsan and others.

The Customs I&I team established many check posts on main entry and exit points of the Lahore

city. The team intercepted a Mazda truck bearing registration no: LES972 near Kala Shah Kaku. During checking of vehicle the customs team recovered huge quantity of coconut.

The market value of seized coconut is Rs42,00,000 which also includes duty and taxes to the tune of

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Rs16,00,000. The customs team asked the driver of the vehicle to produce legal documents regarding import and transportation of coconut but they remained failed to show any relevant legal documents.

Customs I&I team seized the bags and registered a case of smuggling against accused persons.

court approves 14-day judicial remand Tribunal postpones hearing of 7 cases of two accused in money laundering he Customs Appellate Tribu- day, the same bench heard cases

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he Special Federal Court of Customs Taxation and AntiSmuggling has approved a 14day judicial remand of the accused involved in the currency smuggling and handed them over to the customs investigation authorities for interrogation. Earlier, the Pakistan Customs Preventive Department had foiled a bid to smuggle a large number of foreign currency notes abroad and arrested two culprits at the Lahore Airport.

The customs sources said that,

during the baggage search of two Bangkok-bound passengers at the Allama Iqbal International Airport, $25,000 was recovered. The ofRicials conRiscated the recovered currency and apprehended the two accused who are being interrogated. The accused, identiRied as Muhammad Shehzad, a resident of Kasur, and Atif, a resident of Lahore, were involved in the money laundering. DC Customs Naveed-ul-Rehman Bhagvi took action against the accused and arrested them. –CB Report

nal (single & double) bench heard nine cases on Tuesday and adjourned all the cases to different dates and reserved the verdict in a few cases.

According to the details, division bench-II comprises Omer Arshed Hakeem, Member Judicial and Imran Tariq, Member Technical, heard eight cases, including Muhammad Shahzad versus Customs Faisalabad, Noor Gas versus Customs Lahore, Sohail & Brothers versus Directorate of Intelligence and Investigation Lahore. On Tues-

filed by Advance Energies versus Customs Lahore, Jumma Khan versus Directorate of Intelligence and Investigation Multan, Irfan Eziz versus Customs Multan.

Furthermore, bench-II heard Down Enterprises versus Directorate of Intelligence and Investigation Lahore and Ishtiaq Ahmed versus Directorate of Intelligence and Investigation Multan The single bench-II comprising Imran Tariq Member technical heard one case of Admiral Sanitary versus Customs Sambrial. –CB Report

court imposes cash penalty on suspects in smuggling case

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he Special Court of Customs Taxation and Anti-Smuggling has announced punishment in a renowned case of statues smuggling. According to the details, a case of statues smuggling was scheduled for hearing before the Judge, Tahir

Sabir. After hearing the arguments of the lawyers, the Customs Court on Wednesday imposed a penalty of Rs 25,000 on two culprits and asked them to pay that amount before the court. The customs authorities had registered cases against three suspects, Ammar, Gulzar and Muhammad Hassan. They were arrested on charges of smuggling of 50 antique dolls, 313 costly coins and two

plates as well of Mughal era artifacts. Two customs ofRicials were also arrested in charges of helping of smuggling of these items. They also got bails from the court. The Customs Court ordered the customs authorities to handover these statues to the management of the Lahore Fort for keeping them in museum. Another accused who was involved in smuggling of these stat-

ues from Peshawar to Lahore and then intended to smuggle them to Bangkok is on bail and his case is in process now.

Meanwhile 18 other cases were also scheduled for hearing before the customs court. Most of the cases were adjourned without any proceedings because of non availability of the concern parties and lawyers of the cases.

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ollectorate of Customs Adjudication is one of the most important Collectorate for the generation of revenue in customs and disposal of seizure cases generate revenue for the Collectorate on merit.

Additional Collector Customs Adjudication Talib Hussain expressed these views during an exclusive interview with Customs Today the other day in his ofRice. He said that accurate assessment in Customs seizure cases was very important and as Rlaws could be found in the seizing cases at the time of adjudication. The assessment of seizure cases is made under section 25 of the Customs Act 1969 of appraising staff.

The adjudicating authority is exercising the power of adjudication any seizure within pecuniary limit. Customs Adjudication send any seizure case which involves duty taxes up to Rs1 million to deputy collector, seizure cases which involves more than Rs1 million and less than Rs3 million duty taxes forwarded to Additional Collector and more than Rs3 million duty taxes seizure case send to collector for adjudication. Additional Collector Talib Hussain told that he observed several times values duty and taxes involved in the seizure cases were reported by seizing ofRicer himself without any assessment by the appraisement staff in customs dry Port.

We found remarkable difference in the duty and taxes reported by detecting agency in various seizure cases due to their

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Wednesday, October 25, 2017

approximate assessment and it gained huge loss to our national exchequer due to approximate assessment and after the conRiscation reserved price has been set for auction. While additional collector have observed the value of same vehicles and goods seized by detecting agency in different seizure cases changed.

I have directed detecting agency that all seizure cases should be framed after proper assessment of Appraisement staff at Multan Customs Dry Port in respect of duty and taxes involved in the seizure for future. It will also assist customs adjudication in trial of any seizure case after its exact assessment. Additional Collector Customs Adjudication Talib Hussain has shown exceptional performance by issuing Rinal Order-in-Original (ONO) in 132 seizure cases of Rs 193.170 million during Riscal year 2016-17 and decided 18 seizure cases of Rs 34.36 million so far in the current economic year.

He told that Customs Adjudication is bounded to decide any seizure case with in hundred and twenty days of the issuance of show cause notice and I have decided all seizure cases within the assigned period.

We have provision that if case is not decided in 120 days of the issuance of show cause notice due to any reason then additional collector may take extension of 60 days from collector. He informed that Collectorate of Customs Adjudication (Faisalabad) Multan Camp OfRice is facing acute shortage of ofRicers. We are working without Staff Superintendents, Assistant Collector, Deputy Collector and others in the Multan Camp OfRice

and suffer administration issues during performance of our assigned tasks of Federal Board of Revenue. Collectorate of Customs Adjudication is one of the most ignored departments of Customs because it has not any separate buildings for their Collectorate ofRice and we are performing our job in the various Collectorates. Collectorate of Customs Adjudication is giving maximum output with its limited resources.

He informed that majority of seizure cases are mishandled by seizing agency due to their poor investigation from seizing staff of the customs and investigation staff needs proper training to enhance their capabilities which will also beneRit Customs Adjudication in the speedy trial of seizure cases. Clumsy and unskilled investigation in the creation of seizure reports are also obstacle for Customs Adjudication in providing justice and sometimes poor collection of evidence also favours accused in the hearing of smuggling cases. Collection of evidence in the formation of seizure cases are riddled with irregularities that allows accused and suspects in smuggling cases to get away because the prosecution is unable to build a strong case against them. Customs Adjudication decide seizure cases on the presented facts and Rigures according to rule of law. Customs Collectorates are not cooperating with Adjudication in the implementation of laws because they have no right to took possession of conRiscated vehicles after the decision and these conRiscated vehicles possession should be handed over to Customs Adjudication under section 182.

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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

Issue of macroeconomic risks

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sking the Pakistani government to address current risks, the World Bank has agreed to support economic reforms to achieve the development goals. Pakistan has been facing various economic issues for the last many years and needs to exploit human capital development, achieve macroeconomic stability, enhance renewable energy and involve private sector in infrastructure projects. However, it is difficult to understand how the bank reneged from its earlier remarks on external financing of $31 billion in its recent South Asia Economic Focus report.

The bank, on one hand, not only praised the government for stabilizing its economy over the past four years, but also appreciated it for achieving 10-year high growth of 5.3 percent during the financial year 2016-17. But on another, the bank expressed concern over the headwinds in the external sector and a rising fiscal deficit which could put hard earned macroeconomic stability at risk. This is the issue haunting the government which would need external financing of around $17 billion or up to 6 percent of gross domestic product during the financial year 2018 to deal with current account deficit and debt payments.The figure, $17 billion, is $1 billion less than what the Ministry of Finance had projected for the current fiscal year. Earlier, the government had shown a fierce reaction after the World Bank had projected the external financing needs of the country at $31 billion for this fiscal year to cover the current account deficit and debt payments. The lending agency has rectified its mistake after holding meeting with a Pakistani delegation in New York but the economists believe the rectification by the bank will not change the ground realities.The bank, in the biannual report ‘South Asia Economic Focus’, had remarked that the country’s external sector was facing instability and foreign currency reserves were also insufficient to deal with import bill.

Pakistan is facing multiple problems one of which is undue pressure from the new administration of the United States.

Terrorist activities are again picking up and the economic progress has been facing resistance due to political chaos.

Tariffs 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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Three cars loaded with smuggling items impounded ISLAMABAD: The Anti-Smuggling Organization (ASO) Islamabad took into possession three cars loaded with various kinds of smuggling goods worth Rs3.00million including value of the cars.

According to details given by Assistant Collector Majid Hussain Gadd that, on a tip-off, the ASO staff, comprising Superintendent Abdul Malak and Inspector Hafeez, intercepted three motor cars including one Alto and two Toyota coming from Peshawar to Rawalpindi on GT Road.

During the search, the ASO staff found various kinds of foreign origin soft drinks and ladies suiting cloth from three cars. The staff asked the possessors to show any proof that goods are not being smuggled, but they failed to do so.

car cell Islamabad takes into possession vehicle on actionable tip-off

Wednesday October 25, 2017

National

Afu meets allocated target of whole month of ST during just 10 days

ISLAMABAD

TARIQ DERYA

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he Car Cell of the Model Customs Collectorate (MCC) has impounded a Non-Duty-Paid (NDP) car, PASSO model 2010, valued Rs01.00million on Wednesday. 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. The staff of the Car Cell asked the possessor to provide original documents of the car, but he failed to do so. After the firsthand investigation, the cell took into posses-

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sion the vehicle and brought it to the state warehouse. An FIR has been lodged against the owner of the NDP vehicle. The authorities concerned revealed that the documents of the car were checked by the registration authority, which proved the number counterfeit. The car has been impounded under the Customs Act-1969 and the documents of the vehicle have been sent for further examination to Investigation and Prosecution (I&P) Department. The FBR has issued special instructions to the Customs Department to take appropriate steps to arrest smugglers and curb the transfer of non-duty-paid vehicles. Meanwhile, The Anti-Smuggling Organization (ASO) Islamabad impounded smuggling goods along with an offending vehicle (vehicle used for carrying smuggling goods) worth Rs2.389million on GT Road.

ISLAMABAD

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he Air Freight Unit Islamabad achieved the assigned target of the whole month of October Financial Year 2017-18 under the head of Sales Tax in just Rirst 10 days. According to details given by Nisar Ahmad Phullerwan, Additional Collector Air Freight Unit (AFU) Islamabad, that the AFU earned revenue of Rs211.45million during the initial 10 days of October FY17-18 against the allocated revenue target of Rs172.63million.

He told that the AFU will collect extraordinary revenue under above said head during the current month.

During the Rirst 10 days of October FY17-18, the Additional Collector told CT that the AFU collected surplus Customs Duty as well during 10 days of October FY17-18.

The AFU received Rs87.55million of CD while it was assigned revenue collection target of Rs76.60million.

During said period, the AFU got Rs10.95million extra revenue under all the heads against the earmarked proportional revenue target for 10

days of October FY17-18.

Nisar told CT that, during initial 10 days of October FY17-18, the AFU generated Rs79.90million as Income Tax (IT) against the allocated proportional revenue collection target of Rs43.00million. The AFU was earmarked the revenue collection target of Rs120.49million for the month of October FY17-18 under the head of

IT. During 1st-Quarter FY17-18, the AFU got Rs488.87million as CD whereas it was assigned revenue collection target of Rs583.53million under the same head for the 1st-Quarter FY17-18. The AFU was allocated the revenue collection target of ST of Rs663.15million while it earned Rs761.08million against the assigned revenue col-

lection target. The AFU got extra revenue of Rs97.93million against the assigned revenue collection target of ST for the 1st-Quarter FY17-18. The sources added that the AFU received Rs392.36million of IT against the allocated revenue target of Rs341.88million under the same head during the 1stQuarter FY17-18.

pcA detects tax evasion by m/s Sofia paints KARACHI

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wAQAR AhmED AnSARI www.customsbulletin.com

irectorate of Customs’ Post Clearance Audit (PCA) has detected duties/tax evasion of Rs 3.26 million allegedly by M/s SoRia Paints, it is learnt.

The official sources told Customs Today that M/s Sofia Paints imported two consignment of paint chemicals under PCT Heading 3208.9090 and cleared the same from Port Qasim, Karachi vide GD No. KS-50566 dated 7 August.2016, paying customs duty 12.5 percent after claiming benefit of SRO 659/2007. However, the subject goods are correctly classifiable under PCT 3208.2090 attracting customs duty 20 percent and income tax 9 percent.

Thus, by way of mis-declaration

of classiRication, M/s SoRia Paints evaded/short paid 3.26 million.

Therefore, the importer, has violated the provisions of Section 32 (1) (2) & (3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 34 of the Sales Tax Act 1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (1), and 14 of Section 156(1) of the Customs Act 1969, Section 33(5) of the sales tax Act, 1990 and Section 148 & 182 of Income Tax Ordinance 2001 and section 7A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Special procedure Rules 2007(special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

Accordingly, an audit observation was issued to M/s SoRia Paints for explaining and clarifying as to on what basis they have avoided/

evaded the livable duty and taxes.

The importer, however, failed to come up with any tangible evidence and explanation and was also unable to refute the charges leveled by the Department.

Meanwhile, The Directorate of Post Clearance Audit (PCA) has detected 10 cases tax evasion involving revenue of Rs 10.12 million.

Sources told Customs Today that Directorate of Post Clearance Audit, headed by Director Nadeem Memon, detected cases pertaining to short payment of customs duty and sales tax/ and withholding tax (WHT) because of inadmissible concessions, short payment of antidumping duty, additional sales tax, federal excise duty and income tax.

The Directorate served 4 contravention reports and 6 observations during 22 days of September involving total duty and taxes of Rs

10.12 million. The companies served audit observations or contravention M/s Zafar Brothers and M/s Noshad and company.

Directorate General of Post Clearance Audit (PCA) Nadeem Memon directed all relevant officials and teams to expedite their efforts to recover outstanding amount from defaulters. It is necessary to mention here that Post Clearance Audit is using all available resources to detect cases involving tax evasion and mis-declaration. Directorate served three contravention reports and five observations during the 20 days of September involving total duty and taxes of Rs 8.45 million. The companies served audit observations or contravention M/s K K enterprises, M/s Areeb Chemicals , M/s Famous garments, Sabahat and Sons and others.

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Intelligence officer Munir Ahmed retires Wednesday October 25, 2017

National Shagufta Zareen relinquishes charge as Secretary

ISLAMABAD: Munir Ahmed, an Intelligence officer of BS-16, has retired from the government service on attaining the age of superannuation.

The officer, posted at Intelligence and Investigation-FBR, Regional Office, Multan, stood retired from the government service with effect from August 14.

Adnan Shams assumes charge as Statistical officer at fBR hQ

ISLAMABAD

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ISLAMABAD

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hagufta Zareen, a BS-19 officer of Inland Revenue Service, has relinquished the charge as Secretary. The officer, in pursuance of Board’s Notification No. 2628-IRI/2017, dated 20.09.2017, relinquished the charge of the post of Secretary, Federal Board of Revenue (HQ), Islamabad with effect from September 28. The performance allowance of Shagufta has also been restored with effect from July 11, 2017.

Meanwhile, Muhammad Ali, a BS-19 officer of Inland Revenue Service, has taken charge as Secretary (Inland Revenue Policy). The officer, in pursuance of Board’s Notification No. 2628-IRI/2017, dated 20.09.2017, relinquished the charge of the post of Additional Commissioner-IR, Regional tax Office-II, Lahore September 29 and assumed the charge of the post of Secretary (Inland Revenue Policy), Federal Board of Revenue (HQ).

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pervez memon assumes charge as commissioner-IR ervez Ismail Memon, a BS-19 officer of Inland Revenue Service, has assumed the charge as Commissioner-IR. Pervez, pursuing the Board’s Notification No. 2761-IRI/2017, dated 03.10.2017, relinquished the charge of the post of Commissioner-IR (OPS) (HRM), Regional Tax Office II, Karachi with effect from October 3 and took the charge of the post of Commissioner-IR (OPS) (IP/TFD/HRM), Regional Tax Office II, Karachi on the same date. Meanwhile, Rana Waqar Ali, a BS-19 officer of Inland Revenue Service, has assumed the charge as Additional Commissioner-IR. The officer, in pursuance of Board’s Notification No. 2628-IR-I/2017, dated 20.09.2017. –CB Report

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dnan Shams, a BS-17 ofRicer of Pakistan Bureau of Statistics, Islamabad, has assumed the charge of the post of Statistical OfRicer at Federal Board of Revenue (HQ), Islamabad.

The services of Adnan Shams have been placed at the disposal of Director, Directorate of Research & Statistics, Federal Board of Revenue (HQ), Islamabad with effect from September 15. Meanwhile, Muhammad Irfan Raza, a BS-20 ofRicer of Inland Revenue Service, has taken charge as Chief (Management). The ofRicer, in pursuance of Board’s NotiRication No. 2761-IR-I/2017, dated 03.10.2017, relinquished the charge of the post of Commissioner-IR

(Zone-I), Large Taxpayers Unit, Lahore with effect from October 5 and

assumed the charge of the post of Chief (Management) at Federal

Board of Revenue (HQ), Islamabad on with effect from October 9.

Islamabad Afu collects Rs454.92 million as all duties & taxes on imports T

ISLAMABAD

TARIQ DERYA

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he Air Freight Unit (AFU) Islamabad generated Rs454.92million of all duties and taxes on imports from 1st to 28th of September Financial Year (FY) 2017-18.

According to details explained by sources of Model Customs Collectorate (MCC) Islamabad that, after revising the Free Trade Agreement (FTA), the performance of the AFU Islamabad has improved.

During above said period, the AFU earned Rs131.67million as Customs Duty (CD).

Sources told CT that the AFU received Rs211.73million of Sales Tax (ST) and the AFU did Rs111.52million as Income Tax (IT) during the 1st to 28th of September FY17-18.

The AFU Islamabad collected Rs726.039million of all duties and

taxes on imports during August FY2017-18. During the Financial Year 2017-18, the government has revised the Free Trade Agreement (FTA) with different countries in-

cluding China therefore the growth of revenue from imports under all the tax heads has increased significantly. During the month of August FY2017-18, the AFU Islam-

abad got Rs197.827million as Customs Duty (CD) which is extraordinarily high against the collection during the last Fiscal Years of 2016-17 and FY15-16.

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Naveed Khan assumes charge as Second Secretary ISLAMABAD: Naveed Khan, a BS-18 officer of Inland Revenue Service, has assumed the charge as Second Secretary.

The officer, on repatriation from Directorate General, Immigration & Passport (HQ), Islamabad vide Notification No.MRP-II-HR-MGR-005 dated 29-09-2017, took the charge of the post of Second Secretary, Federal Board of Revenue (HQ), Islamabad with effect from October 10.

Textile ministry to organize seminar on crop nutrition KARACHI

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inistry of Textile Industry would organize one-day seminar on ‘cotton crop nutrition’ in order to promote use of organic fertilizers against the use of synthetic fertilizers for enhancing and maintaining the soil health to achieve maximum peracre output of different crops in the country. He said that the event would be held at Central Cotton Research Institute (CCRI), Multan where as the Minister of State for Textile Industry would inaugurate the seminar. The other aim of the event is to highlight the importance of the application of organic fertilizers and encourage the farmers to use it for a healthy an environment friendly agriculture produc-

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tion in the country, said Cotton Commissioner in the Ministry of Textile Industry Dr Khalid Abdullah. During the event the farmers would be introduced and trained about the use of organic fertilizers and maintaining the soil health as against the use of synthetic fertilizer and its after effects on soil and its health. They would be apprised about the slow-release nature of organic fertilizers, which offers environmental advantages and nutrient filled food crop production for domestic production as well as exporting to fetch a reasonable foreign exchange reserves for the country. He informed that the excessive use of chemical fertilizers are water-soluble, which allows any excess unused fertilizer to be washed away by rain or heavy watering and eventually enter groundwater and pollute streams and lakes. He said natural fertilizers improve moisture retention in the soil, making leaching less likely. In addition, ingredients in organic fertilizers are naturally biodegradable.

National

Smuggling will be impossible in days to come: Deputy Director Azam khan

Businessmen laud completion of neelum-Jhelum project ISLAMABAD

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ompletion of Neelum-Jhelum Hydropower Project is an achievement of the government which will help bridge power shortfall and help generate handsome revenue, a business leader said. The much-delayed project has almost been completed costing over Rs404 billion which will generate 969 megawatts of electricity. The reservoir of the dam with a capacity of 8,200 million acre-feet is being filled which will take a month, said ICCI former president Atif Ikram Sheikh. He said that the project will add five billion unit of electricity in the national grid per annum while it will generate Rs50 billion revenue and also cater for domestic and agricultural needs of the area. Sheikh said that the cost of electricity from the project has been estimated at Rs7 per unit which is very low as compare to the other modes of power generation. He said that test production of the electricity has been initiated while the commercial production will begin within three months. A substantial amount is being used to provide water to the local population for consumption and agriculture while damage to the environment has been minimised, he added.

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irectorate of Customs Intelligence and Investigation Deputy Director Muhammad Azam Khan said that Pakistan Customs has launched a countrywide anti smuggling campaign on the directives of Director General Shaukat Ali. He said that resulted steps are being taken to completely eliminate the menace of smuggling.

Talking to Customs Today during an exclusive interview in Faisalabad, Deputy Director Azam Khan said that as many as new check posts are already set up at different places which included Khushab, Sarai Muhajir, Sadiqabad and Sargodha city to curb smuggling of goods from foreign country into Pakistan.

To a question, Azam Khan said law enforcement agencies are also helping the Customs Department in curbing smuggling in the area. In this regard, Customs Intelligence and Intelligence is also getting full cooperation of law enforcement agencies in their anti smuggling operations when they required any assistance to tackle smugglers.

He said that Director General

Wednesday October 25, 2017

Shaukat Ali has issued stern directives to vigorously continue the anti smuggling operations in their respective jurisdiction areas.

He said that Customs Intelligence showed outstanding performance by taking timely action against smuggled goods and vehicles in the region. The number of seizure cases detected by Customs Intelligence and Investigation is also reRlecting the performance of the Field Intelligence Unit. He told that Customs Intelligence and Investigation Faisal-

abad Range OfRice has detected 23 various seizure cases of worth Rs70,726,846 involving unearthing duty taxes of Rs40,512,288 during their anti smuggling drive in the territory in First three months of Fiscal Year 2017. Whereas Customs Intelligence and Investigation Faisalabad has generated Rs51,562,657 through the auction of conRiscated vehicles and miscellaneous goods.

While receiving Rs4,864,133 duty and taxes after released of different consignments.

25 customs officers including 7 directors, reshuffled

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ISLAMABAD

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ederal Board of Revenue (FBR) has transferred and posted 25 Pakistan Customs Service ofRicers of BS 19-20 with immediate effect. The PCS ofRicers of BS-20 reshufRled include Sarfraz Ahmad Warraich posted at Director General (OPS), Directorate General of Internal Audit (Customs), Lahore from Director Directorate of Post Clearance Audit, Lahore.

Syed Muhammad Tariq Huda is posted at Director General, (OPS) Directorate General of Training & Research (Customs), Karachi from

Collector, Collectorate of Customs, (Appeals), Karachi.

Wasif Ali Memon is posted Director, Directorate General of Transit Trade, Karachi from Director, Directorate General of Customs Valuation, Karachi. Mirza Mubashir Baig is posted Director, Directorate of Post Clearance Audit, Lahore from Collector, Collectorate of Customs (Adjudication), Faisalabad.

Fayyaz Anwar is posted Director, Directorate of IPR Enforcement (Central), Lahore from Director, Directorate General of IPR Enforcement (North), Islamabad. Irfan-ur-Rehman Khan is posted Director, Directorate General of Post Clearance Audit, Is-

lamabad. He is also allowed to look after the charge of Director, Directorate General of IPRE (North), Islamabad in addition to his own duties. He was serving as Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi. Iram Maqbool Aamir is posted Director, Directorate General of Intelligence & Investigation, FBR, Islamabad from Collector, Collectorate of Customs, (Appeals), Islamabad. Zahid Ali Baig is posted Collector, Collectorate of Customs, (Appeals), Islamabad from Chief, (Accounting Wing) Federal Board of Revenue (HQ), Islamabad. Tahir Qureshi is posted Collector, Collectorate of Customs (Adjudication-II), Karachi from

Director, Directorate of Intelligence & Investigation, FBR, Hyderabad. The PCS ofRicers of BS-19 moved include Mohammad Iqbal Muneeb posted as Director OPS Directorate General of Customs Valuation, Karachi. Imtiaz Ahmed Shaikh is posted Secretary (Accounting Wing), FBR (HQ), Islamabad. He is allowed to look after the charge of Chief (Accounting Wing), FBR (HQ), Islamabad. He was serving as Additional Collector, Collectorate of Customs (Adjudication-I), Karachi.

Muhammad Akram Ch is posted Director, (OPS) Directorate of Intelligence & Investigation, FBR, Multan from Director, (OPS) Directorate of Internal Audit (Customs), Lahore.

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World Customs

Taiwan’s Brogent widens global footprint

TAIPEI: Taiwan-listed Brogent Technologies Inc is set to advance in the global entertainment scene with its i-Ride flying theatres, as it plans to expand in Europe and to the Middle East. The group currently has nine i-Ride theatres globally, spread out across China, Canada, Japan, the US, Germany, Spain, and Taiwan, where it calls home.

In an i-Ride theatre, riders get to experience what flying is like, with the help an eight-minute cinematic clip and a suspended seat platform that swings towards a giant dome screen.

Wednesday October 25, 2017

uS customs deploys facial recognition technology at Jfk

BD to import 100,000 tons of boiled rice from India DHAKA

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WASHINGTON

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S Customs and Border Protection has deployed facial recognition biometric technology at one Transportation Security Administration (TSA) checkpoint in John F. Kennedy International Airport. For the technical demonstration, CBP teamed up with TSA to make use of travellers’ photographs taken at TSA’s Terminal 7 international checkpoint to compare against travel document photographs.

OfRice of Field Operations deputy executive assistant commissioner John Wagner said: “As we continue to deploy technical demonstrations, CBP is assessing the use of biometric technology as part of a future end-to-end process, from check-in to departure, in which travellers use biometrics instead of their boarding pass or ID

uk gAS-prices rise on undersupply, lower imports ritish wholesale gas prices edged higher morning as a dip in imports from Norway led to a slightly undersupplied system.

Within-day gas price up by 1.25 pence to 45.25 p/therm at 0927 GMT. Day-ahead gas price up by 0.87 p to 44.75 p/therm. Traders said forecasts of warmer-than-average temperatures later on Thursday had curbed demand for gas but that a dip in imports from Norway lad left the system undersupplied, providing support for prices. British gas system slightly undersupplied by 4.8 million cubic metres, with supply forecast at 235.2 mcm and demand forecast at 240 mcm, National Grid data showed.

Imports from Norway through the Langeled pipeline were around 50 mcm, down from around 52 mcm the previous day. –CB Report

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throughout the security and boarding process. “Expanding these demonstrations to the TSA process is the next step in CBP’s goal of transforming and improving air travel, making it smoother, seamless and more efRicient for travellers, while also enhancing the security of the process.” Just as in CBP’s present biometric exit technical demonstrations, it will make use of the Rlight manifests to develop a photo

gallery of travellers boarding international Rlights using their images from passports, visas, and other travel documents. When passengers on outbound overseas Rlights arrive at the TSA ticket document checking podium, the TSA ofRicer will analyse the traveller’s boarding pass and identity documents as per the TSA’s standard operating procedures and will then.

Jordan authorities foil massive drug smuggle in northern Badia raid

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n Anti-Narcotics Department (AND) force stormed a house in the Northern Badia District, where a known drug smuggler stored a massive quantity of narcotics and pills for the purpose of smuggling it across the border to a nearby country.

On site, 273 kilogrammes of Hashish and 600 thousand narcotic pills were found and conRiscated.

One of the smuggler was appre-

hended, while the other two remain at large. For weeks, AND have been staking out the house and tracking the smugglers, in order to ensure the arrest of at least one of the suspects, the police statement said.

Meanwhile, The major objective behind amending the Income Tax Law is not to expand the taxpayer base but to primarily address tax evasion and improve tax compliance, a senior ofRicial said. –CB Report

he government has decided to import 100,000 tons of boiled rice from India to meet the growing domestic demand created by crop losses in recent Rloods. A Food Ministry ofRicial said Bangladesh will buy that total amount of rice at a cost of Tk 377.65 crore each ton costing $455 or Tk37,487. The rice will be imported under government-togovernment (G2G) basis.

The ministry’s proposal will be placed at the meeting of the cabinet committee on public purchase and economic affairs on Wednesday, with an alternative chairman in the chair as Finance Minister AMA Muhith is currently in Washington to attend the World Bank and International Monetary Fund annual meeting, said the ofRicial. The ofRicial also added that per

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ton rice from India will cost more than Tk823 compared to the rice imported from Myanmar. The 100,000 tons rice import will be the Rirst of its kind arrangement between Bangladesh and India in recent years. India on September 3 had decided to export around 500,000 tons of parboiled rice to create a buffer stock. According to the Food Ministry proposal, the India government’s authorised agro cooperative National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) will export the rice to Bangladesh. Bangladesh is currently facing a shortfall of 1.5 million tons of rice due to heavy crop losses during the recent Rlooding in different districts across the country. After the Rloods, around 150,000 tons of rice has been exported to Bangladesh by private traders from India until now.

Amid strained relations with Myanmar over the Rohingya refugee crisis, last week the cabinet committee on public purchase had also approved the Food Ministry’s deal on procuring of 100,000 tons of rice.

hk, Switzerland in tax agreement wo global wealth management hubs signed an agreement for automatic exchange of Rinancial account information in tax matters.

The agreement will commence in 2018 and the Rirst exchange of data between tax authorities will take place in 2019. Both countries must complete internal procedures before the new agreement enters in force. A Hong Kong government spokesman said, «We have been seeking to expand Hong Kong’s automatic exchange of Rinancial account information (AEOI) network with our tax treaty partners.

Including the agreement with Switzerland, Hong Kong now has 15 AEOI

partners. The Swiss government initiated a consultation on the Hong Kong AEOI, as well as on a similar AEOI agreement signed with Singapore in July. The governments of Indonesia and Switzerland also inked a joint declaration the same month. Indonesian Finance Minister Sri Mulyani Indrawati stated that it was important for Indonesia to be able to implement AEOI with Switzerland as it was one of the largest Rinancial centers in the world. Indonesia has been trawling Rinancial centres for offshore funds and following the closure of its domestic tax amnesty recently signed an agreement with Hong Kong. –CB Report

finance ministry, SIgAR seize 45kg of ‘illegal’ gold

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he minister of Rinance says the smuggling of gold is an ongoing problem and measures will be taken to Right the issue.

The Ministry of Finance with the help of the Special Inspector General for Afghanistan Reconstruction

(SIGAR) has seized 45kgs of gold that was due to be smuggled out of the country, the Finance Minister Eklil Hakimi said. Hakimi said the gold was worth at least $2 million USD. However, he did not give more details about it during a press conference. “We found the gold which was being smuggled. The value of the gold was at least $2 million dollars,” Hakimi said.

“The issue is that this trend continued for the past several years and we will give you more details (in the future). SIGAR helped us in this respect.” According to him, the gold has been handed over to the stateowned Central Bank for safe-keeping and based on an agreement signed at the Senior OfRicials Meeting in Kabul last week, SIGAR will cooperate with the bank in this re-

spect. He said “it was 45kgs of gold and we gave it to the Central Bank with the help of SIGAR”.

Meanwhile, the Rinance minister said they have outlined a draft for three-year budget for the Rirst time.

“In the next year, for the Rirst time, we will provide you with a three-year budget which will include both the normal and the development budgets,” he said.

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Three ships take berth take berth at Port Qasim KARACHI: Three ships M.V IIfa, M.T Gas Log Santiago and M.T Gas Esco carrying Coal, LNG and LPG were allotted berths at Port Qasim Electric Power Terminal, Engro Elengy Terminal and Engro Vopak Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA) here on Monday. Meanwhile five more ships, MSC Mars, MSC Bilbao, Lahore, Brizo and Dragon Ocean with Containers, Furnace oil and Coal also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was observed at the port at forty seven percent on Sunday where a total of eight ships namely Safmarine Nayassa, Achilleas-S, IIfa, Three Saskias, Epic Sardinia, Gas Log Santiago, Gas Esco and Pavino Spirit were occupied at PQA berths to load/offload Containers.

port manatee sees increase in shipments from mexico entral Florida’s Port Manatee will see more shipments from Mexico with ocean carrier World Direct Shipping adding another weekly stop to the port. The announcement by World Direct Shipping increases the company’s service to the port, first established in 2014.

Ships depart from the north-central part of Veracruz, from Port Tuxpan, in a service starting Jan. 12. “We couldn’t be happier with how the initial service has thrived, with our 2 ½-day transit time offering the fastest short-sea connection between Mexico and the U.S. Southeast, Northeast and Midwest for refrigerated produce and other cargos,” Carlos Diaz, director of Palmetto, Fla.-based World Direct Shipping, in a news release. The new service complements the other World Direct Shipping arrival at the

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port, starting from Coatzacoalcos, Diaz said. Tuxpan is the closest commercial port to Mexico City, according to the release, providing for more opportunities for fruit exports. The weekly schedules call for Friday departures and Monday arrivals for the new service. Currently, ships leave Coatzacoalcos on Saturday and arrive at Port Manatee on Tuesdays, according to the release. Meanwhile, Libya’s city of Benghazi took another step towards stability when its commercial port reopened for the first time in three years. One of Libya’s two main rival governments, the socalled provisional government based in Tobruk, led the reopening. The port was closed in 2014 when armed militias, including Daesh, took over the city. –CB Report

Ports & Shipping

port of Dover’s $330 million 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 Rirst 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 flagship 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

define 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 everchanging political and trading landscape. “The Rinancial support supplied by blue chip lenders underlines the critical role Dover fulRils for UK and European economies, businesses and consumers. “A prominent role which will remain into the future post Brexit.”

Wednesday October 25, 2017

hormozgan ports’ throughput up 6.5% in h1 lose to 53.32 million tons of oil and non-oil products were loaded and unloaded in the ports of the southern Hormozgan Province during the first half of the current Iranian year (March 21-Sept. 22), registering a 6.5% rise compared with the corresponding period of last year, director general of the Ports and Maritime Organization of Hormozgan said. “Non-oil products accounted for about 34 million tons of the total amount and the rest were oil products. Over the period, 19.2 million tons of non-oil products were exported, 5.4 million tons were imported, close to 1.8 million tons were transshipped, 3 million tons were transited and almost 4.2 million tons were cabotaged,” Allah-Morad Afifipour was also quoted as saying by IRNA. The official added that 7.4 million tons of oil products were exported, 1.5 million tons were imported, 39,400 tons were transited and 9.7 million tons were cabotaged.

Container loading and unloading stood at close to 1.34 million TEUs, indicating a 33% increase compared with the similar period of last year. –CB Report

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mundra port hits new productivity milestone WASHINGTON

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he 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 337meter (1,106-foot) 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 post-Panamax 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 trafRic in the Indian Subcontinent region.

The terminal expansion is part of Adani Port’s strategic plan to position Mundra as the top container harbor in India with a capacity of 6.6 million TEU annually. It has also been winning more hinterland customers and accessing new markets with rail upgrades, an effort that led Mundra’s April to June volume to increase 20 percent year over year to 1 million TEU. The private harbor, about 300 nautical miles from JNPT, encompasses portowned Adani Mundra Container Terminal; DP World-managed Mundra International Container Terminal; and Adani CMA Mundra Terminal, a joint venture CMA CGM Group. While Mundra has expanded and increased productivity, its chief rival JNPT has done so as

well, and the opening PSA International’s Bharat Mumbai Container Terminals (BMCT) will bring capacity there to around 7.5 million TEU. Underscoring those productivity gains, the use of radio-frequency identification container tracking has given JNPT an edge over Mundra’s overall dwell times, with an average of 48 hours at JNPT compared with 53 hours at Mundra. he US ports that closed ahead of Hurricane Irma’s landfall are preparing to reopen, but with fuel stores low, many still without power, and roads and rail lines in disrepair, it will be days before shippers see supply chains in Florida and the Southeast totally restored. Already, analysts and transportation providers say the storm, which followed hot on the heels of Hurricane Harvey, could have lasting impacts on truck rates and capacity through January 2018.

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Passenger arrested with 1.8kg heroin SIALKOT: The Airport Security Force (ASF) arrested an accused and recovered 1.8 Kg heroin from his possession at the Sialkot International Airport. According to the airport sources, the accused, Asif Butt, belonged to Narowal who was trying to smuggle narcotics from Sialkot to Saudi Arabia via Dubai.

The Anti Narcotics Force (ANF) sent the accused behind the bars after registering a case against him.

Wednesday October 25, 2017

Business

nAB initiates probe against Shehbaz LAHORE

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ational Accountability Bureau (NAB) ordered an inquiry into the corruption allegations levelled against Shehbaz Sharif in the Multan Metro Bus Project, and the controversial selling of a Rlight-worthy Pakistan International Airlines’ (PIA) aircraft.

Presiding over a meeting of NAB’s director generals, NAB Chairman (r) Justice Javed Iqbal took suo moto notice of the two matters and said that the investigation must be completed within 10 months.

In August, ARY News had accused the Punjab chief minister of receiv-

Bok earns Rs1,375 million PESHAWAR

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ing more than Rs10 million in kickbacks from the project. Shehbaz had

pfc announces to hold its 9th mega exhibition “ Interiors pakistan”

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he Bank of Khyber (BOK) posted Rs. 1,375 million profit after tax (PAT) during the period ended on September 30, 2017. This was disclosed during 146th meeting of the Board of Directors of the Bank held in the federal capital the other day. The meeting was presided over by Dr. Shahzad Khan Bangash, Additional Chief Secretary, Government of Khyber Pakhtunkhwa & Chairman of the Bank’s Board. Shakeel Qadir Khan, Finance Secretary, Government of Khyber Pakhtunkhwa.

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vehemently denied the charges in a press conference, saying that level-

ling such serious allegations against someone was not a “joke”.

Media report had reported that a Chinese regulatory authority had found discrepancies in the income of a local company Yabaite that had business links to a Rirm in Pakistan.

On further investigation, the Chinese board had discovered that the company belonged to Shehbaz.

Earlier this year, the national Rlag carrier had allegedly sold an aircraft to a German museum without seeking permission from authorities. In March, a parliamentary committee had asked the PIA to submit a thorough report on the matter.

Following Iqbal’s order, the relevant NAB ofRices will now appoint an inquiry ofRicer to investigate the matters and Rile a reference within 10 months.

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akistan Furniture Council (PFC) announced to hold three-day mega 9th Interiors Pakistan Expo-2017 to promote local furniture industry worldwide as well as enhancing the exports of the sector. The expo would be held on December 15 here at Expo Center, where as many as 100 brands will exhibit their products.

The expo aimed at promoting and introducing Pakistani interiors, fur-

niture and accessories in and outside Pakistan, said PFC Chief Executive Mian Kashif Ashfaq. In past, PFC had successfully organized eight mega exhibitions and got amazing response from the public and private sector alike, he added. China, Italy, United Kingdom, Turkey, Hong Kong, Bulgaria, Denmark, Thailand and, Bangkok have been invited for participation while delegations from other countries are too be expected, he added. Members from diplomatic corps, leading businessmen, stakeholders of the furniture industry and foreign delegation would also attend

the event, he maintained. While more than 70 leading local companies and interior designers will display their products and as per previous trend nearly 250,000 to 300,000 people are likely to visit this mega exhibition. ‘This exhibition has now opened new vistas and venues to the amazing potential and caliber of Pakistani furniture, Rixtures and respective furnishing goods that we produce with high quality,” he said. The essence of this mega furniture exhibition is to promote the furniture and associated Pak made products at local and international level.

food exports increase 17.52 pc in 1Q ISLAMABAD

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ood group exports from the country during first quarter of current financial year increased by 17.52 percent as compared the exports of the corresponding period of last year. Food Commodities worth US$ 742.391 million were exported during the period from July-September, 2017-18 as compared the exports US$ 631.731 million of same period of last year, according the latest data released by the Pakistan Bureau of Statistics. During the first three months of current financial year, rice exports grew by 31.91 percent and reached at 621,094 metric tons as compared the exports of 482,445 metric tons of the same period last year, it added. During the period under review, rice worth US$ 320.242 million exported as compared the exports of US$ 242.694 million of same period last year. In first quarter of current financial year country earned US$ 90.931 million by exporting about 86,672 metric tons of rice as compared the exports of 88.772 million and 92,321 metric tons of same period last year.

Exports of basmati rice grew by 2.43 percent and reached at 86,672 tons valuing of US$ 90.31 million in last three months as against 92,321 metric tons worth US$ 88.772 million tons of same period last year, it added.

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govt to implement reform agenda to bring foreign investment ISLAMABAD

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eforms agenda for restructuring of Board of Investment (BOI) will implement for enhancing the professional capacity of the institution to bring more foreign investment in country.

Foreign Direct Investment (FDI) recorded increase of 154 percent during the Rirst two months of cur-

rent Rinancial year 2017-18 as compared to the corresponding period of last Rinancial years 2015-16.

During July-Aug 2017 period ,the net FDI inRlow into the country is US$ 457.2 million against $ 179.4 million during July- Aug 2016 and over overall the power and communication sectors attracted the major inward FDI, Additional Secretary and Spokesman of Board of Investment (BOI) Shah Jahan Shah told.

He said that Investment Facilities

Center (IFCs) would also be established in Karachi, Lahore, Islamabad and Peshawar to provide modern facilities to investors.

SEZs investors would get the facility for plant and machinery import without customs duty in all four provinces of the country. The spokesman of BOI said that all steps would be taken for the industrial growth in the country.

He suggested Pakistani investors should go for joint ventures with

foreign investors to learn the international best practices of managerial skills and technology. He said that Special Economic Zones would lead to create employment opportunities and development in the area.Replying to a question, the government is working on a plan for reconstruction and modernization of Board of Investment (BOI) for introducing the best international practices to provide conducive environment for investment, he said.

In this regard, consultative committee had been formed, which consists of senior ofRicials of establishment division and BOI to review and execute the reconstruction plan of BOI on modern lines,He said according to plan, BOI wanted to hire experts to deal with different sectors including legal, export, investment, Special Economic Zones (SEZs) and marketing and branding experts to enhance the capacity and modernization of the institution.

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Iran’s dairy exports to hit $1 Billion TEHRAN: Iran is one of the top milk producers and has ambitious plans to grab a bigger share of the global milk and dairy market. In an interview with Financial Tribune, Deputy Agriculture Minister Hassan Rokni estimated that Iran’s dairy exports will hit a record high of $1 billion by the end of the current Iranian year (March 20, 2018). Mr Rokni noted that Iran exports 20 types of processed dairy products to 30 countries.

Europe, Central Asia, Persian Gulf region, Iraq, Afghanistan, and Russia are among its export destinations.

“Iran exported 850,000 tons of dairy products in the last fiscal year (March 2016-17). Exports of milk and related dairy products are projected to reach 1 million tons this year,” he said. Mr Rokni said latest statistics show Iran exported 500,000 tons of dairy products during the five months to 22 August.

karachiites to face hardships during next four months KARACHI

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Wednesday October 25, 2017

Chambers

‘political stability prerequisite to attract foreign investment’

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hief Minister Sindh Syed Murad Ali Shah has said that Karachiites will be facing some hardships because the traffic flow situation in Karachi, which was already in bad shape, will worsen further as many mega schemes pertaining to construction of roads will commence in Karachi from October 2017 to February 2018, which will surely provide huge relief upon completion. Speaking at the dazzling and most stunning celebration organized to mark 20 years of Public Service to the Business & Industrial Community by Businessmen Group (BMG) from KCCI’s platform, Syed Murad Ali Shah said that although he has been making announcements from time to time about these schemes but now, the time has

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come to start all these schemes, of which four will simultaneously start this month where few more will begin by November 15. “From October to February next year, you will see major work going on in numerous development projects and we would like to extend regrets to the citizens for the inconvenience that are likely to occur however, this inconvenience will ultimately prove beneficial once these projects are completed”, he added. Members of Sindh Cabinet including Manzoor Hussain Wassan, Nisar Ahmed Khuhuro, Mukesh Kumar Chawla, Sikandar Ali Mandhro, Mir Hazar Khan Bijarani, Muhammad Ali Malkani and Syed Nasir Hussain Shah, Former Federal Minister Dr. Asim Hussain, Former Sindh Minister Sharjeel Inam Memon, other MPAs and Ministers attended the Celebration whereas Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli, Vice Chairmen BMG Tahir Khaliq, Zubair Motiwala.

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conomic and Commercial Attaché of Spain Miguel Pena Sánchez said Pakistan’s economy was improving despite some imbalances like current account deRicit therefore he was considering bringing a business mission of Spain to Pakistan for B2B meetings with Pakistani counterparts.

He said this while exchanging views with the local business community at Islamabad Chamber of Commerce and Industry.

He said both countries should focus on developing long-term plans to explore all potential areas of mutual cooperation for further improving bilateral trade.

He further said Pakistan was mostly depending on textiles for exports and it should focus on diversifying exports to further improve trade with Spain and European countries.

He said political stability was important for attracting Spanish and other countries’ investment in Pakistan. He emphasized that Pakistan

should improve its infrastructure to promote cooperation in tourism with Spain. He said there was a need to create proper channels for enhancing connectivity between private sectors of both countries and assured that he would work with Pakistani chambers of commerce to explore new areas of bilateral cooperation between Spain and Pakistan.

Speaking on the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry, said Pakistan and Spain enjoyed

cordial political relations which should be transformed into growing trade and economic relations for achieving better results. He remarked that frequent exchange of trade delegations and promoting direct contacts between private sectors of Pakistan and Spain was necessary to raise awareness of potential areas of mutual cooperation between the two countries.

He informed the commercial consular that many special economic zones would be set up under the

cc IcT assures to resolve issues of traders KARACHI

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delegation of Islamabad Chamber of Commerce and Industry led by its President Sheikh Amir Waheed called on Zulfiqar Haider, Chief Commissioner, Islamabad Capital Territory in his office and apprised him of the key issues of business community that required his urgent attention. Muhammad Khalid Khattack, IG Police, Islamabad was also present at the occasion.

Muhammad Naveed Senior Vice President, Nisar Ahmed Mirza Vice President ICCI, M. Ejaz Abbasi, Ms. Fatima Azeem, Ahsan Zafar Bakhtawari and others were in the delegation.

Speaking at the occasion, Sheikh Amir Waheed, President

ICCI highlighted the issue of low value of stamp paper due to which property business was facing problems. He said value of property in Islamabad was now assessed at FBR rate instead of old DC rate while the maximum value of stamp paper was Rs.24,000/-. He said that due to manifold hike in the value of property at FBR rate, large number of stamp papers were required to be used for registration of property which caused lot of paper wastage and created hassles for the property business. He stressed that the minimum value of stamp paper for property cases should be increased to Rs.100,000/- or the method of Punjab Government should be adopted to minimize the problems of property business. He also emphasized that the condition of

stamp paper for family transfer cases of property should be abolished which was transferred as gift to family members. If it was not possible, then the previous practice of one third value should be restored to provide relief to the family transfer cases.

Muhammad Naveed Senior Vice President and Nisar Ahmed Mirza Vice President ICCI said that Pakistan Standards & Control Authority was conducting raids on retail outlets in Islamabad which has created concerns in the business community and sought the cooperation of Chief Commissioner to stop such raids. They said that if PSQCA had any genuine complaint against any retailer on account of standard or quality, it should first take ICCI on board so that such issues could be resolved with mutual efforts.

CPEC in Pakistan and Spanish investors should explore opportunities of joint ventures and investment in these zones. He said Pakistani leather products, surgical instruments, sports goods, fruits and many other products could Rind good market in Spain and it should enhance its imports from Pakistan. He said Pakistan has great reserves of natural resources including marble, granite, minerals and Spanish technology & machinery could help it in producing value-added products.

LccI seeks existing mechanism of imposition DT he Lahore Chamber of Commerce & Industry has urged the Federal Board of Revenue (FBR) not to impose Regulatory Duty on the import of raw materials and other essentials that are not being manufactured locally. In a statement, the LCCI President Khawaja Khawar Rasheed, Senior Vice President Khawaja Khawar Rasheed and Vice President Zeshan Khalil said that existing mechanism of imposition of Regulatory Duty on imports is not only hitting the importers hard but is also depriving government of huge revenue. They said that imposition of any tax or duty should be progressive. They said that principally Regulatory Duty is imposed on such products where local industry needs protection. –CB Report

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Tanker filled with 12,000 liter Iranian diesel impounded by Gwadar GWADAR: The Customs Collectorate Gwadar seized a huge quantity of Iranian diesel in a raid conducted and arrested two smugglers.

Sources told CT that Deputy Collector Gwadar Junaid Mehmood constituted a team of Customs Anti-Smuggling Organization (ASO) under the supervision of Customs Preventive Inspector, Shamshad Ali. The team, during a search operation, intercepted an oil tanker bearing registration No: SGL-5643 Sargodha, which was going from Jeewani to Bar area.

Wednesday, October 25, 2017

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About 120,000 pouches of India made gutka seized by customs preventive Sukkur HYDERABAD ASLAm AnJum QuREShI www.customsbulletin.com

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he Anti-Smuggling Organization (ASO), Customs Preventive Sukkur, has conRiscated foreign origin eight bundles and 120,000 pouches of smuggling Gutka of all brands made in India worth Rs1.3million including duties and taxes during a raid some three days ago. The goods were recovered at Highway Station Sukkur. Following direction of Model Customs House Hyderabad’s Collector Akhlaq Ahmad Khattaq, the ASO team is executing various operations in the region to thwart the smuggling attempts.

Sources told Customs Today that Collector Hyderabad Akhlaq Ahmad Khattak received a tip-off regarding the smuggling attempt. He formed an ASO team comprising customs authorities Inspectors, Sepoys, Driver and other staff.

The ASO team intercepted a vehicle near highway station Sukkur and recovered abovementioned items. The team asked the driver of the vehicle to show the legal documents regarding the possession of the goods, but he failed to do so.

The smuggling foreign origin Gutka

involved duties and taxes of Rs1.3million. The ASO made a seizure report and deposited the items into Sukkur

State Warehouse. The sources said Collector of Customs Akhlaq Ahmad Khattaq advised the ofRicials of the ASO to

adopt a zero tolerance against the smugglers who are out to destroy the legal business of the city. OfRicials said

all possible measures will be adopted to arrest the smugglings in the region as vigilance has also been enhanced.

ASo seizes Indian cloth, goods worth Rs30m near chenab Bridge SIALKOT

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ustoms Anti Smuggling Organization (ASO) squad of Sialkot has seized the different smuggled goods including Indian clothes , sarhies, 250 cartons of foreign made different juices and electronics from different vehicles during a special checking near River Chenab

Bridge here.

According to the senior officials of the Sialkot Customs Collectorate, the worth of these seized was stated to be Rs. 30 million. This special checking was conducted by the anti smuggling squad on the orders of Collector Customs Sialkot Ahmed Rauf, they added.

Anti Smuggling Squad Sialkot has also arrested three accused drivers of the dubious vehicles carrying these smuggled items and sent them behind the bars.

The officials added that the further investigations were under-

way. The special checking teams of the Excise and Taxation Department have seized and confiscated as many as 1299 illegal and unauthorized number plates of different vehicles during a special checking (general hold up)in Gujranwala Division’s all the six Sialkot, Narowal, Gujrat, Mandi Bahaud Din, Hafizabad and Gujranwala districts here.

According to the senior E&T officials, these teams also checked more than 3000 different vehicles and challaned 207 vehicles for having no registration number plates , besides, impounding

35 other vehicles due to non payment of their pending token taxes , in this regard. Meanwhile, the special recovery teams of Gepco have disconnected the 881 electricity connections of the domestic, commercial and industrial consumers for not paying their prolonged pending arrears of Rs.29 million, during the ongoing special recovery campaign in Gujranwala Division’s all the six Sialkot, Narowal, Gujrat, Mandi Bahaud Din, Hafizabad and Gujranwala districts here. The senior Gepco officials told that the Gpeco

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teams have jazzed up the pace of the ongoing recovery campaign , as the surveillance teams have started the special checking of the electricity meters to detect the power pilferage, in any, by the consumers, in this regard.

The Gepco has also isshued teh separate recovery notices to the thousands of the other defaulters , advising them to pay their arrears at earliest , besides, issuing them warning of disconnection of their electricity bills in case of the non-payment of their prolonged pending outstanding dues as well.