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Daily

Vol 1 Issue No. 203

Karachi, Wed October 14, 2015

KARACHI

AFTAB CHANNA

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he Customs Preventive, Hyderabad, Quetta and Gwadar of Enforcement-South Region and Export (Port Muhammad Bin Qasim) collected at least Rs 3187.52 million under the head of customs duty during the month of September 2015. According to details available with Customs Today, the MCC-Preventive collected Rs 2519.30 million in terms

Price Rs. 14.00

of customs duty while Rs 420.14 million was collected on September 30. The MCCHyderabad collected an amount of Rs 268.25 million customs duty and Rs 70.52 million in just a single day i.e.

September 30, 2015.

The MCC Exports (Port Muhammad Bin Qasim) collected Rs 185.44 million and Rs 4.53 million on September 30, 2015. Moreover, the MCCQuetta collected Rs 212.03 million in the whole month while Rs 30.33 million on September 30. The MCC-Gwadar collected an amount of Rs 240.01 million and Rs 114.71 million on September 30.

Ceramics manufacturers ask DG Customs Valuation to suspend ruling

Multan Customs Intelligence seizes contraband items worth Rs44.5m in Sept

Nigeria can benefit from BISP initiatives: Marvi Memon

ASO impounds bus loaded with smuggled cloth, Iron pad locks

Banks’ profits increased after cut in interest rate: PEW

The manufacturers of ceramic have requested the DG Customs Valuation | See pAge 02 |

Customs Intelligence Multan has seized smuggled goods worth Rs 44.50 million | See pAge 03 |

BISP is one of the leading social safety net (SSN) programmes in the world | See pAge 04 |

MCC Lahore Preventive’Anti-Smuggling Organization (ASO) on Monday | See pAge 12 |

The reduction in the interest rates by the State Bank of Pakistan | See pAge 09 |

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DC Yawar Nawaz deploys three inpectors at AFU, BBIAP Wednesday, October 14, 2015

National

ISLAMABAD: Model Customs Collectorate (MCC), Deputy Collector headquarters Yawar Nawaz Islamabad has issued an office order to deploy three inspectors of the customs collectorate as duty/vigilance officers in the field.

According to the notification, three inspectors, Akhtar Zaman, Muhammad Hassan and Shahrukh Butt, have been deployed at preventive division, Islamabad dry port and AFU import and BBI Airport Islamabad to work as duty/vigilance officers.

Sources further told this scribe that these officers will work in different shifts, while they would not enjoy any holidays during this job.

Ceramics manufacturers ask Valuation Dg to suspend ruling on Chinese tiles

prAL maladministration: FTo suggests FBr to take FiA’s assistance ISLAMABAD

NAeem uLLAH TAriQ

KARACHI

AFTAB CHANNA

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he manufacturers of ceramic have requested the Director General, Customs Valuation to suspend the Valuation Ruling No 758/2015 dated September 8, 2015 for importing tiles from China and Iran.

In this regard, the Pakistan Ceramics Manufacturers Association forwarded a letter to the DG Customs Valuation with a request to suspend the Valuation Ruling No 758/2015.

According to letter, over the last Nive years, the valuation of tiles from China has been reduced by more than 25 percent whereas all the input costs in China regarding labor costs, energy cost and the currency valuation against the US dollar increased by more than 35 percent.

Moreover, the inNlation in China over the last 10 years has cumulatively gone up by 26 percent whereas in the same period the valuation of tiles has been reduced The import data reveals that a large number of consignments of Iranian origin tiles were released in the price ranging from $ 0.60 to $ 0.16 per square meter as against $ 2.17 and above per square meter from China vide Valuation Ruling No 518/2013. However, there is no current Valuation Ruling for Iranian tiles.

he Federal Tax Ombudsman (FTO) has issued recommendation to the Federal Board of Revenue (FBR) to take measures to stop maladministration and frauds in the Pakistan Revenue Automation Limited (PRAL).

In a recently issued recommendation, the FTO wrote to FBR authorities to establish a liaison with Federal Investigation Agency (FIA) to stop maladministration and fraudulent engagements in the PRAL. Documents available with Customs Today stated FTO suggested the FBR “to devise foolproof Standard of Procedure (SOP) with the consultation of FIA wing and National Response Centre for Cyber-crimes to stop the use of fraudulently prepared documents in the PRAL.” The FTO had to issue the recommendations due to certain unresolved complaints filed against PRAL’s functioning. If implemented, the envisioned SOP was deemed to benefit at large to the complainants coming up with grievances caused by maladministration at FBR and PRAL.

These tiles have been imported under alleged wrong PCT heading 2713.200 attracting 10 percent duty, causing loss of billions of rupees to the national exchequer, the letter adds. The letter stated that average raw mate-

rial cost including glaze cost, clay costs and other pigments and color cost on a conservative basis, will be over $ 1.3 per meter. The average gas consumption to produce one meter of tile is 3.9 MMBTU, the cost of gas in

China is $4.9 which translates to about $ 0.7 per meter. These two inputs together without labor and other factory overheads is more than $ 2 hence, it is not possible to produce and sell a tile at the lower value.

Customs appoints attachment officer in Silver Oil Mills case ISLAMABAD

SHAHiD miNHAS

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he Model Customs Collectorate (MCC) Islamabad has appointed Superintendent Muhammad Siddique as Attachment OfNicer (AO).

According to details,

Deputy Collector Headquarters Yawar Nawaz has issued notiNication no. Cus/appointed A.O/36/2015/9965 in which the DC ordered that Muhammad Saddique has been opinionated as an attachment ofNicer in the terms of Customs Recovery Rules (CRR) issued Vide SRO 450(I) 2001 to attach the property movable and immovable of M/s Silver Oil Mills Plot No. 199-200 industrial area Is-

lamabad for the recovery of outstanding government dues amounting Rs 1.7 million. The order added that the attachment ofNicer has been directed to seize the properties belonging to the defaulters while observing the provision of the customs recovery rules.

The attachment ofNicer is directed by the DC headquarters to report about the completion of the attachment formalities soon.

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Tax cut on second-hand clothes demanded LAHORE: Pakistan Businessmen and Intellectuals Forum (PBIF) and All Karachi Industrial Alliance (AKIA) on Monday said SAARC region had become the world’s top importer of used clothes and articles.

India is the largest importer of such clothes while Pakistan and Russia have clinched the second position worldwide, it said.

Out of global trade of $4.179 billion worn clothes, New Delhi holds 4.3 percent share equal to $182 million while Pakistan and Russia have 3.9 percent share, said PBIF President and former provincial minister Mian Zahid Hussain.

imF asks FBr to share monthly revenue collection, refunds report KARACHI

Zulfiqar kunbhar

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he International Monetary Fund (IMF) has instructed the Federal Board of Revenue (FBR) to provide monthly revenue collection report and the sales tax refunds details to them, it is learnt. The IMF has recently forwarded a letter to FBR Chairman Tariq Bajwa a few days ago in which the loan provider called for monthly performance of the FBR, including collection of duties and taxes and the refunds of sales tax etc, sources told Customs Today. After the IMF letter, the FBR forwarded a letter to the Regional Tax Offices (RTOs) to ensure submission of collection and performance report.

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Taxpayer facing problems in SmS service of FBr MULTAN

imrAN ALi

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he Federal Board of Revenue (FBR) newly launched SMS service is creating problems for taxpayers. The SMS service is for verification of taxpayers’ status on Active Taxpayers List for determining filer and non-filer is creating issues.

Tax payers at the Regional Tax Office complained to officials that SMS service gives no response to taxpayers after forwarding message.

FBR recently introduced SMS service for verification of taxpayers’ status on Active Taxpayers list (ATL) to eliminate difficulties faced by taxpayers and respective withholding agents in the remote areas of the country where they faced difficulties due to insufficient resources of IT facilities and internet services.

This verification can be done by simply typing “ATL space 13 digit CNIC.

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Wednesday October 14, 2015

National

multan Customs intelligence seizes items worth rs 44.5m in Sept MULTAN

imrAN ALi

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irectorate of Customs Intelligence and Investigation Multan has seized smuggled goods worth Rs 44.50 million in different antismuggling activities during September, 2015.

Customs Intelligence conducted operations against the smuggled goods and vehicles in different areas of its Jurisdiction including Multan, Sadiqabad and Dera Ghazi Khan. Talking to Customs Today, Additional Director Customs Intelligence Nisar Ahmad stated that smuggled goods include Iranian diesel and petrol, old and used gear box in bulk quantity, welding rods, old and used engine blocks were captured.

The teams of the department confiscated smuggled cloth valued at Rs.4.9 million, six vehicles worth Rs 19 million and other contraband items worth Rs 20.6 million.

The additional collector added that intelligence made 11 seizure cases in the month, while six cases were registered by Multan region, three by Dera Ghazi Khan and two were detected by Sadiqabad region.

While comparing the performance of corresponding period, he said that Customs Intelligence seized smuggled items worth Rs 7.47 million in September of the corresponding year economic year

2014-15.

Saying that the numbers of smuggling attempts were failed by the team marking an outstanding performance, he said that all this become possible due to the effective vigilance of the department.

He stated that few operations against smuggling were conducted in line with the anti-smuggling strategy of Federal Board of Revenue (FBR) of coordinated approach.

Customs intelligence conducted operations against smuggled goods and vehicles in different areas of its jurisdiction, including multan, Sadiqabad and Dera ghazi khan.

FBR appoints 2 new officials for CPEC ISLAMABAD

SHAHiD miNHAS

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ederal Board of Revue (FBR) has appointed 2 focal persons of secretary level for China Pak Economic Corridor (CPEC) projects.

According to sources, FBR on the request of Ministry of Power and

Electricity has appointed these focal persons. FBR also started implementation of withholding tax exemption on import under CPEC through Port Qasim (PQ). As per details, FBR has appointed one focal person from Inland Revenue (IR) department while the other one from Customs department. Both of the ofNicers will coordinate with the departments concerned for facilitation and resolve issues faced in CPEC projects on priority bases.

Sources further added, under CPEC

projects, all imported items through Port Qasim will be exempted from withholding tax. Meanwhile, The Federal Board of Revenue (FBR) has decided to revise the Customs Act1969 while National Evaluation Data Base (NEDB) is going to be established for revaluation of customs duty of imported items. According to sources, FBR had decided to revise the Customs Act 1969 and remove drawbacks from it while making it applicable with today’s circumstances.

He said that out of these eleven seizure cases nine cases have been referred to the Customs Adjudication for further legal actions, which includes almost Rs 22.26 million of taxes.

Additional Director Nisar Ahmad concluded that despite shortage of manpower and other resources, Customs Intelligence will continue to play its role to root out the menace of smuggling in the region.

Customs Tribunal hears 47 cases ustoms Appellate Tribunal bench-I heard 47 cases on Monday and adjourned all the cases for next hearings. A two-member divisional bench comprising Chairman Ghulam Murtaza and Member Technical Khawaja Omer Mehdi heard 44 cases, while single bench consisting of Member Technical Khawaja Omer Mehdi heard 3 cases.– CB REPORT

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Brazil sugar exports forecast to hit 7-year low Wednesday, October 14, 2015

Business

NEW YORK: US officials ditched ideas of a rise in Brazilian sugar output, and cut export forecasts to a seven-year low, despite boosting expectations for the cane harvest, thanks to yield-boosting rains.

The US Department of Agriculture’s Sao Paulo bureau lowered by 1.0m tonnes, to 35.0m tonnes, its forecast for overall sugar output in the top producing country in 2015-16, which started in April.

The downgrade – which took the figure below the 35.95m tonnes the bureau estimated for output last season.

Nigeria can benefit from BiSp initiatives: marvi memon ISLAMABAD

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ISP is one of the leading social safety net (SSN) programmes in the world and Nigeria may beneNit from the exemplary experience of BISP. This was stated by Minister of State and Chairperson BISP, Marvi Memon, at the BISP Secretariat, in her welcome remarks during the opening session of the Nive-day study visit of the Nigerian Social

AGVEN launches fertiliser distribution operations

Protection Team to BISP. Headed by Andrew David Adejo, a 25-member delegation of Nigeria Social Protection Team, including representatives from World Bank, is on a visit to study the major elements of social protection system of BISP. During her address, the Chairperson BISP shared her thoughts on the importance of National SocioEconomic Registry (NSER) and its signiNicance for being inclusive and national in character for a successful social safety net programme.

She also highlighted the value of the biometric payment mechanism for safe transfer of money to the beneNiciaries and reducing the mid-

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ederal Minister for Commerce Engr. Khurram Dastagir Khan has highlighted the role of China in the economic development of Pakistan and referred to the various projects in the area of energy, infrastructure and logistics, industry and other sectors being implemented under the US$ 42 billion China Pakistan Economic Corridor.

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ing purposes, during the visit are: targeting, identiNication and registry of the poor and vulnerable; payment system and procedure; management information system; monitoring and impact evaluation process; and coordination and reporting mechanism.

The Nigerian delegation’s visit to BISP has been arranged by the World Bank Social Protection Task Team in Nigeria to establish an effective and efficient social protection system. It will assist the Nigerian government in setting up and strengthening of the building blocks of the social protection platform in Nigeria.

remittances touch $5 billion in first quarter

ISLAMABAD

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dleman culture.

She added that the graduation strategies, necessary to pull out the beneNiciaries from poverty, can be developed in cooperation with other organizations as a social safety net programme focuses on the basic sustenance of the beneNiciaries.

In the end, the Chairperson BISP said that the vision of this organization is to give dignity, empowerment and meaning to the lives of beneNiciaries. The primary objective of the visit is to ensure that the Nigerian SSN Program builds on its existing knowledge and practice, based on the experience of BISP. The focus areas of BISP, for learn-

KARACHI

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emittances sent to Pakistan by foreign workers increased four percent during the Nirst quarter of the current Niscal year of 2015/16, the central bank’s data showed on Monday.

Pakistanis living abroad remitted an amount of $5 billion in July-September FY16 as compared to $4.775

billion during the corresponding period of the last Niscal year.

During the month of September, remittance Nlows were $1.775 billion, which was 1.57 percent higher than $1.748 billion in the same month last Niscal. Many analysts said the Nirst quarter’s numbers reveal an extraordinary acceleration, and remittance inNlows seem to be clicking into normal pace rather than slowing down. “The peer countries in South Asia are believed to be ten largest remittance recipients, who register average six to seven percent growth. However, in the past

Pakistan witnessed 16 to 17 percent growth,” said Dr Ashfaque H Khan, Dean at Business School, NUST. “The ongoing crackdown by the government against corruption and money laundering is likely to affect remittance Nlows in future,” he said. Another analyst noted that the pace of remittances in the Nirst half were usually sluggish, but gained upward momentum in the second half of each Niscal year. “I foresee remittances to remain resilient this Niscal year due to recovery in oil prices in the Middle East and the rebounding US economy.

KSE 100-index plunges 152.07pts, down 0.44% on volatile trading KARACHI

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he Karachi Stock Exchange benchmark 100-index lost 152.07 points or 0.44 percent to reach 34031.78 points and volume of 123,307,870 shares on Tuesday. Till midday, the benchmark KSE-100 index maintained the bullish trend and gained 31.80 points to reach 34215.65 points level. On Monday, the KSE-100 index gained 340.67 points to close at 34,183.85 points as compared to 33,843.18 of the previous session. The KSE-30 Index added 274.37 points and closed at 20,658.19 points against 20,383.82 points of the last closing. The market volume decreased to 195.913 million shares traded as compared to 248.919 million shares traded in the previous session. High and low were 34279.42 and 34010.35 respectively. Total volume traded in the market was 123,307,870 shares.

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APTMA decides to shut textile mills today LAHORE

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he All Pakistan Textile Mills Association has decided to observe a black day for industry on Wednesday (today) by closing down the textile industry all over the country- from Karachi to

Peshawar, to protest against what it calls the non-serious attitude of the government regarding industry.

APTMA Punjab Chairman Amir Fayyaz, addressing a press conference on Monday, said the owners of mills in Khyber Pakhtunkhwa, Lahore, Faisalabad, Multan and Karachi had unanimously decided to close down operations and lay off millions of workers because they had nothing to offer to their international buyers against the regional

competitors. “Prime Minister’s priorities are foreign tours and he is least concerned over declining export and collapse of the industry.

We are told by the authorities that PM is going to the US again and exporters will have to wait for another 15-20 days for announcement of relief package by the PM.” According to him, the cost of doing business in the textile sector has gone very high and the burden of taxes, provincial cess, system inefNi-

ciencies and the punitive withholding tax regime have added fuel to the Nire. He said that more than 50 textile mills out of 350 have been closed during the last three months, as the mills could not mange to pay high electricity bills.

“We had earlier decided to go on strike in last Sept but we deferred our plan on commitment of the government to announce incentives for exporting sector, which is pending for the last three months. Due to clo-

sure of mills, the country will suffer a loss of $2 million per hour foreign exchange. The Prime Minister should hurriedly announce the relief package for export oriented industry otherwise the shutdown strike might prolong for indeNinite period.” He said the textile industry was vying for reducing its cost of doing business, particularly the cost of energy, which is almost 60 percent higher comparing with the regional competitors.

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ISLAMABAD SHAHiD miNHAS www.customsbulletin.com

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he Federal Board of Revenue (FBR) has decided to revise the Customs Act, 1969 while National Evaluation Data Base (NEDB) is going to be established for revaluation of customs duty of imported items.

According to sources, FBR had decided to revise the Customs Act 1969 and remove drawbacks from it while making it applicable with today’s circumstances.

Sources added that World Bank will provide financial and technical help to strengthen the Risk Engagement Unit (RMU), which is already established in the Customs Department.

Sources added that NEDB will be established to correctly evaluate the customs duty of the imported items.

Meanwhile, the FBR has appointed two focal persons of secretary-level

for China-Pakistan Economic Corridor (CPEC) projects.

According to sources, FBR on the request of Ministry of Power and Electricity has appointed these focal persons. FBR also started implementation of withholding tax exemption on import under CPEC through Port Qasim.

As per details, FBR has appointed one focal person from Inland Revenue (IR) department while the other one from Customs department. Both of the officers will coordinate with the departments concerned for facilitation and resolve issues faced in CPEC projects on priority bases.

Sources further added, under CPEC projects, all imported items through Port Qasim will be exempted from withholding tax.

Meanwhile, Federal Board of Revue (FBR) has appointed 2 focal persons of secretary level for China Pak Economic Corridor (CPEC) projects.

According to sources, FBR on the request of Ministry of Power and Electricity has appointed these focal persons. FBR also started implementation of withholding tax exemption on import under CPEC through Port Qasim (PQ).

As per details, FBR has appointed one focal person from Inland Revenue (IR) department while the other one from Customs department. Both of the ofNicers will coordinate with the departments concerned for facilitation and resolve issues faced in CPEC projects on priority bases. Sources further added, under CPEC projects, all imported items through Port Qasim will be exempted from withholding tax.

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Wednesday, October 14, 2015

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Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDiToriAL

power sector reforms

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ccording to newspaper reports, the International Monetary Fund (IMF) has apprehended that implementation of structural reforms in power sector are facing political and legal challenges. In its eighth review under the extended arrangement and on Pakistan’s request to waive performance criteria, the two sides focused their topics of discussions on the issues related to the energy sector, including imposition of power surcharges coupled with allocation of 0.1 percent of GDP in the current fiscal budget to reduce part of the circular debt. Though the government has missed the indicative target at the end-June 2015 on the flow of power sector arrears by Rs 15 billion, it recovered the projected collections and managed to achieve the September target. The fund has asked the government to align the business plans of the power distribution companies with the arrears reduction plan, including a proposal to set a new bench mark for quarterly loss reduction, revenue collection and recovery targets for each DISCO by mid-October 2015.

On another note, the Privatization Commission is exploring new ways and means to ensure participation of private sector in thermal power generation besides keeping the option open for privatization of the power sector. The government has also launched a roadshow in the United States to create awareness about privatization of power sector in Pakistan and invited the foreign investors to exploit the opportunities in the energy sector. The World Bank and the Asian Development Bank have jointly stressed the need for an alternative plan to keep up revenue generation in the electricity sector in case of legal challenges. The government is facing pressure from various donor agencies to enhance power tariff to neutralize the effects of losses in power generation and its distribution. The government has already brought utility bills to new heights and it is becoming harder and harder for common man to make both ends meet.

Hundreds of industrial units have been closed down and the worst part of the IMF program is that the power outages and the business climate will continue to restrain competitiveness and growth in the country despite enhancement in the power tariff. The government has started implementing a time-bound strategy to deal with price distortions and other issues with the help of international partners. There is a need to expedite work on the hydropower projects and promote policies to attract local and foreign investment in power generation.

Integration of South Asia LAHORE

Dr AFTAB AFZAL

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outh Asian, which is the home of 1.7 billion people, has been branded as the fast growing region in the world in terms of economic, trade and development, but is also backward as compared to many other parts of the world. A forum in the shape of SAARC was established to enhance close cooperation among the countries in the region, but it has been rendered ineffective due to inherent hostilities between India and Pakistan. This region can be turned into a major economic

zone if a process of reconciliation is started among SAARC member states and the people are prepared to forget the bitterness of the past hostilities.

It is unfortunate that instead of boosting trade within SAARC region, 95 percent trade of South Asian countriesis with Europe, North America and East Asia. The Europe is Europe because it trades most of the goods within the countries in the region. The hostility between France and Germany is the thing of the past and all the members of the European Community work in unison. Most of the trade in the ASEAN is within the member states, but the SAARC countries have failed to reap the beneNits of mutual trade. As a result, the region is producing poorest of the

poor and is still not ready to adopt realistic approach.

The reason is simple; the fault is not in states, but in their political leadership who generate their vote bank on the basis of hatred with neighbouring countries. Despite having the best minds and largest concentration of youth, its future is bleak as threat of imminent nuclear war could not be defused.

The world powers take beneNits of the situation and exploit our merits to their maximum satisfaction.

The South Asia needs to create soft borders, enhance greater integration andgive incentives for regional value chains to turn itselNinto an economic powerhouse. Without any doubt, the local trade can be increased from the current $28 billion to $100 billion in a few years.

The Pakistan China economic corridor is the best idea to increase integration within the countries in the region. A network of economic corridors between Pakistan, India, Bangladesh, Bhutan and Nepal will reduce costof transportation which iscurrently 85 percent more than it is in East Asian region. A close cooperation between customs departments to avoid tedious inspections,trade and transit agreements between the SAARC member states and relaxation of visa barriers will deNinitely ensure prosperity in the whole region. A Motor Vehicles Agreementbetween Bangladesh, Bhutan, India and Nepal is good omen to pave the way for a seamless movement of road trafNic, but excluding Pakistan will render the agreement a futile exercise.

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Number of WCCI memberships to be increased to 500: president PESHAWAR: The number of Women Chamber of Commerce and Industry (WCCI) memberships would be enhanced from existing 300 to 500 in Khyber Pakhtunkhwa. This was claimed by newly-elected president of WCCI Khyber Pakhtunkhwa, Nasra Laghmani. She expressed the resolve of making strenuous efforts for promoting women entrepreneurship in the province by providing maximum facilities to business women to flourish and grow.

The WCCI president said that female had equal potential of supporting their families by making an honourable earning, but the only thing they needed was support of family and congenial work environment.

Financial support from China sought for 4,500mw Diamer-Bhasha Dam

Chambers

Banks’ profits increased after cut in interest rate: pew

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hina should finance Pakistan’s one of the biggest power projects, 4500 MW Diamer-Bhasha dam, as almost all the international financial institutions have refused to support it. United International Group Chairman Mian Shahid said this in a statement. He added that Pakistan cannot become a stable country in absence of big dams therefore politicians should shun differences on Kalabagh dam and Pakistan should try to get funding for Diamer Bhasha dam from Chinese govt. Shahid said that newlyestablished Asian Infrastructure Investment Bank should provide the financing for investment in this mega project which Pakistan has been pursuing for many years despite opposition from multilaterals and a neighbouring country. He said that masses would not have faced the problem of floods if mega dams were constructed therefore all politicians should unite in the national interest. Mian Shahid said that dams are imperative to resolve energy crisis which has crippled economy creating multiple problems for the society. He said that all the patriotic forces should join hands for early construction of the projects that are considered lifeline for the country. Lingering issue of the KBD has potential to fuel conflicts therefore this matter of national importance should be resolved forthwith, he added.

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Wednesday October 14, 2015

he reduction in the interest rates by the State Bank of Pakistan has increased the proNits of the banks.

This was revealed by Pakistan Economy Watch (PEW) President Dr Murtaza Mughal in a statement.

He said that the government is the biggest customer of the banks which has received loans to the tune of 6.2 trillion rupees, leaving productive sector in a lurch. He maintained that the proNit of banks jumped by 113 percent in the Nirst six months of the year which is 52 percent more than the previous year.

Last year banks earned an interest of Rs 255 billion while in the current year the banking companies made Rs 495 billion in six months, he added. Dr Murtaza Mughal said that banks of twn trillion rupees as deposits in which three trillion are in the current accounts while rest are in saving accounts. Banks prefer current account over saving ac-

counts to maximise proNit which the depositors of the saving accounts get negative return. He said that top ofNicials of the banks prefer to please shareholders and increase their own perks and privillages because regulator continue to play role of a silent spectator.

Meanwhile, All issues related to Central-Asia-South-Asia transmission line project (CASA-1000) have been addressed and hopefully the

project will be materialized soon and start supplying electricity to Pakistan by 2018, observed H.E. Mr. Sherali S. Jononov, Ambassador of the Republic of Tajikistan while addressing the business community at Islamabad Chamber of Commerce and Industry.

He said completion of this project will greatly help Pakistan in overcoming its energy problems. He said Pakistan needs to improve and up-

ApTmA seeks ban on import of yarn, fabric from india

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PESHAWAR

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ll Pakistan Textile Mill Association demanded that the government place a ban on the imports of yarn, fabric, and garments from India.

Chairman APTMA voiced his concern over the situation, saying that imported and smuggled textile goods have created a crisis in the textile industry and are hurting domestic commerce.

A bird’s eye view of SBP import numbers tells us that by and large, there are only a handful of categories from the yarn and fabrics segment where India has a high share worth mentioning. These fall under the cot-

ton category and include Cotton not carded or combed (HS code 5201), Cotton yarn containing 85% or more by weight of cotton (HS code 5205), and Woven fabrics of cotton containing 85% or more by weight of cotton (HS code 5209).

So, within the cotton category, there are only three subcategories where India has a signiNicant presence (in dollar terms as well as overall share), and outside of it, just a couple of subcategories. So, one might think that APTMA is exaggerating the situation.

Then again, one must keep in mind that the cotton category is a big one, and amounts to over one-fourth of total textile imports as of FY15.

Thus, within these three subcategories alone, India amounts to al-

most 32 percent of Pakistan’s cotton imports, and over 8 percent of total textile imports.

When one compares the numbers to FY14, however, it turns out that Indian cotton imports have fallen by an enormous 48 percent year-on-year. Moreover, the share of the three major Indian imports in Pakistan’s total textile imports was 17 percent in FY14. As of FY15, it’s 8 percent. If anything, things have gotten much better, so why is APTMA complaining?

Well, in dollar terms, Pakistan’s textile imports from India have been markedly lower year-on-year in FY15. But when one looks at the PBS volumetric data for FY15, Pakistan’s textile imports were up by 13 percent year-on-year.

grade its transmission lines network for this purpose.

He said energy, trade and investment were the main focus of Tajikistan with Pakistan. He said most of Pakistani products were reaching Tajikistan via Afghanistan and stressed for direct trade between the two countries that would make Pakistani products more cost effective and affordable for Tajik consumers. He was optimistic that early Ninalization of trilateral transit trade agreement between Pakistan, Afghanistan and Tajikistan will pave way for enhanced trade between the two countries. He said Tajikistan has established 4 Free Economic Zones with attractive incentive including 4 years tax exemption on investment exceeding US$ 5 million. He emphasized that Pakistani investors should invest in these zones in areas of interest. They could set up textile and other units in these zones. He said Pakistani investors could get up to 3 years visas for making investment of USD 5 million in Tajikistan. He said a Made in Pakistan exhibition will be held from 29-31 October 2015 in Dushanbe, Tajikistan.

Steel products being dumped in country by Chinese traders: FPCCI he Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has said that the massive quantity of finished and semi-finished steel products are being dumped by Chinese traders in the country, which is affecting the local industry. FPCCI Standing Committee on Steel Melting chairman Mian Azizur Rehman Chan, in a statement, said that presently steel melting industry is one of the largest revenue generating sectors in Pakistan. “We do appreciate the business friendly policies of the present government. However, there are certain impediments which have retarded the progress and the industry is now in doldrums.”– CB REPORT

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Indian Customs seizes 2.5kg gold, arrests woman Wednesday October 14, 2015

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DUBAI: A hoodwink tactic by a 26-year-old woman passenger was not smart enough to give a slip to the customs officials on Sunday morning. The woman was nabbed by the officials at the Jaipur airport with 2,561 gram (nearly 2.5 kg) of gold concealed in the transformer stamping of a microwave. The woman hails from Mumbai and it was allegedly her first journey to Jaipur as a “carrier” of smuggled gold.

According to the senior officers of customs, they already had information on the woman passenger coming from Abu Dhabi to Jaipur on Sunday morning.

“We were not sure in which of her articles the woman, identified as Heena Javed Rindani, had concealed the gold.

malaysia police seize rm3.4m worth of drugs in kerian

Customs accuses woman of giving bribe to officer

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olice crippled a local drug syndicate after seizing over RM3.4 mil worth of drugs and arrested six men including a foreigner. Bukit Aman Narcotics Criminal Investigation Department deputy-director Datuk Mohd Dzuraidi Ibrahim said police had raided a drug processing lab in Kerian and had seized materials and equipment used in making and packing the drugs.

“Police raided a drug processing lab in Kerian and seized 15.1kg liquid drugs (syabu), 52 kg Ephedrine, 50kg Res Phosphorus, 100 kg Hydrochloric acid, 75 litre Acetone, 100 kg Toluene and several types of equipment used for packing drugs.”

Dzuraidi also said the suspects were picked up in six separate operations

by Special Tactical Intelligence Narcotics Group (STING) held in Kerian and Seberang Perai Selatan districts.

“The suspects, aged between 17 and 47 have been remanded until

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October 17 for further investigation,” he told media. The case has been classiNied under Section 39(B) of the Dangerous Drugs Act for distributing drugs, which carried a mandatory death sentence.

Meanwhile, The Royal Malaysian Customs Department (JKDM) for the Nirst, used the incinerator system to destroy various types of drugs weighing a total of 262.45

kilogrammes (kg) worth RM35.6 million seized since 2013.

Its director-general Datuk Khazali Ahmad said the drugs were seized by the KL International Airport (KLIA) Enforcement Unit, Narcotics Branch JKDM headquarters and the Enforcement Unit of JKDM Kuala Lumpur following the arrests and seizures from 155 cases from 2013 until last month.

Ulster Bank: Sharp upturn in Northern Ireland n increase in new orders for private sector companies also saw more staff taken on, according to Ulster Bank’s Purchasing Managers’ Index (PMI).

The index, which provides a benchmarked snapshot of the economic outlook, recorded the sharpest rise in output in 11 months. The survey noted that

lower commodity prices had resulted in a further easing in the rate of cost inNlation in September, with output prices reducing at a steady pace. Richard Ramsey, chief economist with Ulster Bank in Northern Ireland, said: ” According to the Ulster Bank Northern Ireland PMI, the private sector got off to a slow start at the beginning of 2015.

“However, the general trajectory since then has been one of improvement. Indeed, the rate of growth in business activity and new orders accelerated in the third quarter, relative to the previous three months.

“Meanwhile, local Nirms reported their Nirst quarterly rise in export orders in Q3 since the same period last year. – CB REPORT

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customs broker who bribed an inspector to condone the importation of banned sandalwood will spend three years behind bars, the Criminal Court ruled on Sunday. The Asian woman, JK, 34, handed a Dhs50,000 cheque to a customs officer at the Jebel Ali Port and asked him to allow a container of red sandalwood into the country on June 21 last year.

It belonged to a compatriot public relations agent MO, 32. The importation of red sandalwood was banned under the Convention on International Trade in Endangered Species. The court awarded MO the same jail term and ordered that the duo be deported upon completion of the term. It

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also ordered the confiscation of the cheque.

JK had befriended the inspector and asked for his contact number on grounds she wanted to ask him about customs issues. She later claimed she wanted to import a container of duplicate goods. He alerted his seniors who advised him to lure her into a trap.

She later revealed it contained red sandalwood and that it already arrived at the port.

She promised to offer him Dhs25,000 for clearing it. She added that six similar containers were on en route from Pakistan. In the course of events, she promised to offer him Dhs50,000 for the container in question. JK showed up at the agreed parking lot in Twar area. As she did not have the cash, she contacted MO who arrived with the cheque. She handed it to the inspector.

Sri Lanka export losses due to red tape ri Lanka’s new Deputy Minister of Foreign Affairs has warned export promotion agencies to not let shipments of food by exporters rot in foreign ports because of red tape. Harsha De Silva, an economist, said he had been told by exporters that despite a plethora of trade deals between Sri Lanka and other countries, shipments are often held up by non-tarif barriers.

Government agencies need to get their act together and do what’s necessary to promote the island’s exports whose share of total economic output had fallen steadily in recent years, he said. “What matters is the outcome – whether fruit and vegetable exporters are able to clear fruits from some port in India before

they get spoilt,” he told a forum at the Ceylon Chamber of Commerce on economic diplomacy and winning global markets. I hear at times even though we have signed multiple (trade) agreements, what’s the point, if ultimately exporters are not able to export their bananas or strawberries?” Mutual recognition agreements with overseas trade agencies were needed to ensure Sri Lankan certiNication and paperwork was accepted so that shipments are not held up at foreign ports, De Silva said. “If our fruit certiNication is not accepted in Chennai, you got to do something about it,” he told ofNicers from the Export Development Board and Commerce Department present at the forum.– CB REPORT

Dhaka Air Customs seizes 45kg gold from 3 malaysians DHAKA

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ustoms ofNicials at the Dhaka airport have seized 45 kg gold from three Malaysian nationals. The three landed in Dhaka on Saturday on a Malaysian

Airlines Nlight, said customs Assistant Commissioner Md Shahiduzzaman Sarkar. “The estimated market value of the seized 45 kg gold is around Tk 270 million. They said they were only carriers,” he told.

The three held are Hi Buyee Khong, 38, Johari bin Harun, 41 and Mohammed Ajwan bin Salihin, 21.

Bangladesh has witnessed a huge spurt in smuggling of gold, though

market analysts say much of the gold coming into the country is smuggled into India.

The demand for gold is continuously rising in India and many in the country’s eastern states like West Bengal have been nabbed with huge quantity of contraband gold smuggled from Bangladesh.

Bangladesh has witnessed a huge spurt in smuggling of gold, though

market analysts say much of the gold coming into the country is smuggled into India. The demand for gold is continuously rising in India and many in the country’s eastern states like West Bengal have been nabbed with huge quantity of contraband gold smuggled from Bangladesh. As much as 70kg of gold was seized in one such raid by revenue intelligence ofNicials in Kolkata.

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Britain’s trade deficit improves with rising car exports LONDON: A rise in car exports helped improve Britain’s trade deficit in August, according to official figures.

The monthly shortfall in the trade balance for goods narrowed to £3.3bn from £4.4bn in July.

However, the UK was still heading for a huge deficit in the third quarter of the year after an upward revision to July’s shortfall.

London leading shares heading for biggest weekly rise in four years while European shares are on course for their best week since January Paul Hollingsworth, UK economist at Capital Economics, said: “Even if the trade deficit held steady in September, this would still leave the deficit in the third quarter as a whole at around £11bn, far higher than the £3.5bn deficit recorded in the second quarter.”

Tampa to honor ‘Holland America’ for port ministries and scholarship HOLLAND

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ort Tampa Bay and the Tampa Port Ministries announced today that they will honor what they called the port’s “most venerable cruise partner” – Holland America Line – with the Captain James McKay Award at the 14th Annual Anchor Ball on October 10. The Anchor Ball is an annual charity event that supports Tampa Port Ministries and the George Steinbrenner maritime scholarship program.

The Tampa Seafarers Center, operated

by Tampa Port Ministries and staffed by dedicated volunteers, serves the crews of cargo and cruise ships that visit the port from all over the world, by meeting the physical, social and spiritual needs of seafarers, often of modest means, who spend weeks and months at sea, away from their homes and families. The James McKay Award is named in honor of the Scottish-born schooner Captain James McKay, traditionally acknowledged as a father of the port.

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port of Long Beach boosts its on-dock rail capacity with a uS$93m project he Port of Long Beach (POLB) is boosting its on-dock rail capacity with a US$93m project that promises to eliminate up to 750 truck trips from regional roadways with every on-dock rail train. The ‘Green Port Gateway’ project saw almost six miles of new track laid, allowing port terminals to increase their use of on-dock rail and decreasing truck traffic and air pollution in and around the port.

POLB’s upgraded rail network is part of a broader modernisation programme to strengthen the port’s competitiveness and reduce port.– CB REPORT

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Ports & Shipping

iTF calls for global rules for ship operators to cut carbon emissions PARIS

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he International Transport Forum called for global, enforceable regulations for the maritime industry to reduce carbon emissions by half over the next 35 years and entirely by 2080.

The ITF, a research arm of the Organization for Economic Cooperation and Development, said the United Nations’ International Maritime Organization should impose the standards across the maritime industry, from container shipping lines to tanker operators, and set up a series of requirements that would include a carbon tax. In a policy brief, ITF Analyst Olaf Merk recommended the IMO, which regulates shipping emissions, submit regular reports on the industry’s progress toward meeting the goals. The call comes

ahead the U.N.’s conference on climate change, known as COP 21, in December in Paris. The conference will bring together representatives from governments, nongovernmental organizations and U.N. agencies, with the goal of reaching a legallybinding agreement among nations

to keep global warming below 2 degrees Celsius. “It would be odd if countries are expected to adhere to emission targets but not the shipping sector, especially since it would be impossible to apportion shipping emissions to countries,” the ITF said in the policy brief.

America’s Central port to christen South Harbor soon

NEW YORK: The South Harbor project is a $50 million addition to America’s Central Port, a rehabilitated military base in Granite City that now handles nearly 3 million tons of cargo every year. And they expect that number to go up by 25 percent in the next Nive years, thanks to South Harbor.

The port district includes 200 square miles along the banks of the Mississippi River and Chain of Rocks Canal, with harbors, truck and rail facilities, warehouses and a foreign trade zone. It has 76 tenants employing more than 900 people, according to the port authority, though it is estimated that more than 1,400 people in total are employed through the port district and its tenants.– CB REPORT

Wednesday October 14, 2015

Long Beach police release details in port truck driver’s death NEWARK

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illiam Vasquez, a 26-year-old Los Angeles man, was driving a 2009 Sterling three-axle tractor about 8:30 a.m. Sept. 16 when he got out without setting the emergency brake and without putting the vehicle in park, according to information released by the Long Beach Police Department Wednesday morning. He was on his cellphone when he tried to unlatch the trailer, which rolled forward and struck him.

Long Beach Port Police responded to an industrial accident call at 8:47 a.m. at 700 Pier A Way. Officers found Vasquez about 30 feet behind the tractor. Fire department personnel responded and declared him dead at the scene. The Vasquez family Tuesday addressed members of the media, saying they are upset with a lack of information from port officials.

Vasquez was an independent contract truck driver for Signal Hill-based California Multimodal LLC. He had been a truck driver for more than three years, had just bought a car and was in escrow on a new house when he died. He is survived by his parents and three siblings. The state’s Division of Occupational Safety and Health, or Cal/OSHA is actively investigating Vasquez’s death. By statute, Cal/OSHA has six months to close an investigation.

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Singpost plans freight services, warehouses in uS, europe

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ingapore Post, which counts Alibaba Group Holding as its second-biggest shareholder, plans to expand freight services and warehouses in the US and Europe as Asia’s emerging middle class drives online purchases from overseas.

SingPost expects online transactions to jump in coming years, as the

typical household in South-east Asia currently receives just two to three parcels a year on average, compared with about 30 in developed markets, chief executive ofNicer Wolfgang Baier said in an interview on Oct 8.

“We need to double down” on the push into e-commerce, he said. “Ecommerce is going to grow, and we want to make sure we’re there.”

The move comes as other postal companies in Asia also are looking to reinvent themselves. Japan Post

Group, a US$2.5 trillion (S$3.5 trillion) behemoth that also function as a bank and insurer, is preparing an initial public offering and looking to expand internationally after buying Australian logistics company Toll Holdings earlier this year.

SingPost holds a monopoly on mail delivery in its home base, which accounts for about 80 per cent of its operating profit, but is looking for new areas of growth as more people use mobile phones

and access the Internet. Worldwide business- to-consumer sales could grow 34 per cent to US$675 billion in 2016 from 2014 as the global middle class grows, SingPost said, citing data from researcher eMarketer. The company is building its e-commerce business by managing online stores for about 15 clients such as Adidas and Canon, providing warehousing, handling customs and making deliveries, Mr Baier said.

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US court sends former customs officer to jail NEW YORK: U.S. District Court for the Northern Mariana Islands Chief Judge Ramona V. Manglona revoked the pretrial release of former U.S. Customs and Border Protection Officer Bob Hajime Deleon Guerrero Yamagishi and remanded him to the custody of the U.S. Marshals Service pending sentencing.

Yamagishi’s sentencing is set for Oct. 30, 2015. Yamagishi, who was born in 1973, admitted to two counts of wire fraud as a CBP officer with the U.S. Department of Homeland Security.

Wednesday, October 14, 2015

CUSTOMS BULLETIN

ASo impounds bus loaded with smuggled cloth, iron pad locks LAHORE m HAYAT

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he Model Customs Collectorate Lahore Preventive’ Anti-Smuggling Organization (ASO) on Monday impounded a bus and illegally imported goods, including smuggled cloth and iron pad locks, sources told Customs Today.

It was reported that on the information of Assistant Collector Saqib Ur Rehman, the ASO team headed

by Superintendent Mumtaz Ajmal Mian, Deputy Superintendent Saleem Akhatar, Inspectors Shahid Khan Amjad Khan and Shahid Bhatti intercepted a bus coming from Peshawar bearing registration No 9584 loaded with smuggled cloth and iron pad locks worth Rs 1 million. The source said that the bus worth Rs 2 million has also been impounded and a case has been registered, it was reported.

Meanwhile, According to details collector of customs Lahore Preventive Mukarram Jah Ansari issued orders of internal transfers and posting of four additional and deputy collectors. The collector transferred ADC Sadia Munib from Land Freight

Unit (LFU) and posted Air Freight Unit (AFU) while ADC Jamil Nasir

has been transferred from AFU to LFU. The collector also transferred

and posted DC ShaNiqur Rehman from LFU Wagha to LFU Lahore Air-

port while DC Iram Sohail has been transferred to LFU Wagha.

Faisalabad ASO holds smuggled item worth Rs 3.62m in Sept FAISALABAD

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nder the supervision Collector Muhammad Zulfiqar Ali Chaudhary, the Model Customs Collectorate Faisalabad’s Anti-Smuggling Organisation (ASO) confiscated smuggled item worth Rs 3.624 million in September, 2015.

The ASO seized 10,000 kilogram of red chilli seed worth Rs

1 million, 4,800 tin of Rani Juice worth Rs 150,000, 1520 kg of cumin seed worth Rs 253,333, 32,142 yard of cloth worth Rs 1.247 million, cigarette worth Rs 70,000, 96 dozen of Lux soap worth Rs 37,631, Dove soap worth Rs 14,400, Pearl soap worth Rs 17,280, black tea worth Rs 34,569, tape worth Rs 19,200, vehicle worth Rs 400,000, Sofa cloth 392 kg worth Rs 177,315 and Rani juice worth Rs 203,777.

Talking to Customs Today, Collector Zulaffqar Ali Chaudhary appreciated the perform-

ance of the ASO, adding that updated strategies were being adopted to foil the smuggling bids in the region.

Meanwhile, MCC Appraisement Faisalabad collected Rs 419.133 million during the September, 2015 under the head of all duty and taxes. It had collected Rs 785 million during September of last year. According to the statistics, it collected Rs 108.96 million in wake of customs duty against Rs 285.580 target, Rs 294.09 as sales tax against Rs 471.13 million target, Rs 6.502 million un-

der the head of income tax against Rs 28 million, while it has collected Rs 9.57 million in wake of excise duty.

Meanwhile, Customs Adjudication Additional Collector Bilamur Rehman has ordered to confiscate 1,085 kilograms smuggled ladies bag confiscated

by Customs Investigation and Intelligence.

As per details, Customs Intelligence Faisalabad’s team had intercepted a truck bearing Registration No. P-2131 in its jurisdiction and recovered ladies bags.

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

Intelligence officer Muhammad Yousaf asked the driver namely Shamsuddin to show the documents showing the legal import of the vehicle, but he remained failed.

Therefore, Customs Intelligence impound the items considering them smuggled, besides impounding the truck and forward the case to adjudication for further legal action.

The additional collector heard the case and announced the confiscation outright under Section 156 (I) and 89 of Customs Act, 1969.