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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
Daily
Vol 1 Issue No. 205
Karachi, Fri October 16, 2015
ISLAMABAD
SHAHID MINHAS
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he Model Customs Collectorate Islamabad has shown remarkable performance since the appointment of Collector Zeba Hai Azhar. According to the details, Collector Zeba Hai was appointed at the Islamabad Customs on
March 31, 2014. The collector has second longest tenure at the same place while showing 100 percent achievement in tax collection. Earlier, Chief Collector Nadir Khan Hoti had been performing duties at the collectorate for four years. Under Zeba Hai’s supervision, Islamabad Dry Port, Air Freight Unit and Anti-Smuggling Organisation (ASO) have also marked significant performance in the field
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of revenue collection, anti-smuggling and curbing the mis-declaration and under-invoicing. The collectorate has achieved its annual revenue target before the end of fiscal year and collected Rs 13.278 billion till May 30, 2015 against annual target of Rs 10.378 billion. Officials said that the collectorate will also achieve revenue target for the current fiscal year under the command of Collector Zeba Hai Azhar.
Collector Appeals orders ASO Faisalabad to release seized truck
Customs Multan seizes smuggled goods worth Rs 11 million
World Bank Country Director calls on Ishaq Dar
PAC directs Bajwa to issue refund claims of steel melters
LCCI launches membership form in Urdu
Customs Appeals Asif Jah has issued ONO against the orders of Deputy Collector | SEE PAGE 02 |
The Customs Intelligence Multan has seized smuggled goods worth Rs 11m | SEE PAGE 03 |
The newly appointed World Bank Country Director for Pakistan | SEE PAGE 04 |
PAC Chairman Khurshid Shah has directed FBR ChairmanTariq Bajwa to clear | SEE PAGE 12 |
In line with Supreme Court of Pakistan’s orders, the LCCI on Wednesday | SEE PAGE 09 |
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Public Accounts Committee recovers Rs 100 billion in 21 months Friday, October 16, 2015
National
ISLAMABAD: Public Accounts Committee (PAC) recovered Rs 100 billion in 21 months by resolving 5,000 audit observations. Sources said that during the period, the PAC was sent almost 18,000 observations out of which 5000 have been settled. The sources added that 87th meeting of the committee was held during this time period to review the performance of different ministries. While the reports of four subcommittees are underway, this will be presented in National Assembly in December of current year.
Collector Asif Jah orders Faisalabad ASO to release seized truck
Faisalabad RTO collects Rs 5.551m revenue from July to September
LAHORE
FAISALABAD
NAEEM SHEIKH
M HAYAT
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he Federal Board of Revenue (FBR) Regional Tax office (RTO) Faisalabad collected a revenue of Rs 5.551 millions in three months i.e. from July to September 30, 2015. Sources told Customs Today that Federal Board of Revenue ( FBR) assigned the collection target of Rs 5.977 millions during for the above said three months. The newly posted Chief Commissioner Regional Tax office Faisalabad Mrs Tasleemur Rehman appreciated the performance to her staff in collection of revenue. She said that Regional Tax office Faisalabad achieved 93 percent of revenue target in three months. The revenue collection target for the three months from July to September 2015 includes income tax, sales tax, and federal excise duty. It is also pertinent to mention here, that Regional Tax office (RTO), Faisalabad refunded Rs 2180.155 million to FBR . Whereas during the same period of previous fiscal year 2014-15 Regional Tax Office Faisalabad ( RTO ), refunded 35% amount to Federal Board of Revenue (FBR).
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ollectorate of Customs Appeals Asif Mehmood Jah has issued ONO against the orders of Deputy Collector of Customs Adjudication, ordering the customs authorities to do away with confiscation of an old truck TKW-024 held by the Collectorate of Customs Faisalabad. The Collector of Customs Appeals issued this order in Urdu language. The Collector of Appeals in his order said that the vehicle was tested in Islamabad Forensic Laboratory, showing that the vehicle’s number was not tampered. The order said that the vehicle was registered with the Quetta Excise Department and verified by the Sindh Road Transportation Corporation. The Collector ordered the Faisalabad Customs authorities to release the confiscated truck bearing registration No. TKW/042. The order further stated that during proceedings of the case both sides were duly heard and the Collectorate of Appeals was satisfied with the version of the applicant.
Govt all set to introduce National Auto Policy 2016 KARACHI
ZULFIQAR KUNBHAR www.customsbulletin.com
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he government is all set to announce ‘National Auto Policy 2016’ after removing reservations of the Federal Board of Revenue (FBR) on tax regime and other matters, sources in the Ministry for Industries and Production
said on Wednesday. According to the SRO 693, locally manufactured auto components are included in this SRO and they attract higher duty than non-localised parts. But this has created dual problems in implementation and is parallel to Customs General Order (CGO), containing all locally manufactured engineering goods except auto. As 35 percent is the duty rate of commercial import of auto parts and the parts that would be localized by the end 2016 would become part of the
CGO with the same duty. The FBR is trying its best to cooperate with the government in order to implement the next Nation Auto Policy and is contemplating sector-friendly result. Usually, the government Oinalises auto policy for a period of three years but delay is said to be due to idleness of the Economic Coordination Committee. The new auto policy has proposed incentives for new entrants, revival of assembly plants that have been shut down and expanding existing facilities.
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Govt to introduce friendly tax package for traders KARACHI: The government is all set to introduce “friendly tax package” for traders in which traders will be asked to submit their tax returns. Sources told Customs Today that up to 1 million new taxpayers will be added to the tax net under the new package. New taxpayers will also be provided relief on the declared assets amounting to Rs 50 million. On the other hand, a proposal is also on table to enhance ratio of general sales tax on declaration of Rs 5 million turnover. Sources said that in the new package, the government will exempt new taxpayers for three years, besides this they will be provided simple forms to submit tax returns.
FBR upgrades IOCO to Directorate General KARACHI
AFTAB CHANNA
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he Federal Board of Revenue (FBR) has upgraded the Directorate of Input Output Co-efficient Organisation (IOCO) to the Directorate General to widen scope of the organisation. The official sources told Customs Today the single Directorate is upgraded as Directorate General having three directors for three directorates. A grade 21 officer will head the Directorate General stationed at Customs House Karachi while three separate directorates have also been established, including 2 at Karachi and 1 at Lahore, sources added.
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FBR refuses to provide ITA on local coal production ISLAMABAD
SHAHID MINHAS
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he Federal Board of Revenue (FBR) has refused to provide Input Tax Adjustment (ITA) on the production of local coal production. According to sources, Engro Thar-coal has demanded ITA on the production of coal under the said project but the FBR has refused saying the board is not authorised to provide ITA on local coal production. Sources added that FBR has made it clear that an amendment to the existing law is needed to facilitate the company. Sources added that FBR has provided tax exemption and other facilities to Engro Thar-coal on the new investment under the law but there is no law to provide ITA on local coal production.
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Friday October 16, 2015
National
Multan Customs seizes smuggled goods worth Rs 11 million MULTAN
IMRAN ALI
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he Customs Intelligence and Investigation Multan has seized smuggled goods worth Rs 11 million from Sadiqabad region during a crackdown. Directorate of Customs Intelligence and Investigation seized miscellaneous goods, including 500 tyres of the light trafOic vehicles and heavy trafOic vehicles loaded on the truck. Customs Intelligence and Investigation staff also recovered imported parachute cloth of 3250 kilogram during the action against the smuggled goods. A huge quantities of welding rods were also found in the miscellaneous goods. The weight of the smuggled rods was 2800 kilograms. Steel Connector max was also recovered from the seized goods. The weight steel connector max was 2880 kilogram. Around 600 motorcycle chains of 600 kilograms were recovered from miscellaneous goods during the operation. The said goods were brought through unauthorized routes by way of smuggling in the country. The recovered goods have been formally seized under the Customs Act, 1969 and FIR has been lodged of the same. Owner was unable to produce any legal document of the smuggled goods on the spot. Efforts are being made to arrest the persons involved in smuggling. Additional Director Customs In-
telligence and Investigation Multan, Nisar Ahmad directed his staff to increase vigilance of the entry and exit of the various strategic routes in the jurisdiction in continuance of campaign launched to recover illegally smuggled goods from different places. Additional Director Customs Intelligence and Investigation Multan Nisar Ahmad supervised the whole operation against the smug-
Directorate of Customs Intelligence and Investigation seizes miscellaneous goods, including 500 tyres of light and heavy traffic vehicles, loaded onto a truck.
FBR to launch website in Urdu ISLAMABAD
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he Federal Board of Revenue (FBR) is all set to launch its website in Urdu language after directions of the Supreme Court to use Urdu as the ofOicial language. Sources told Customs Today that Member Facilitation and Tax Payers
Education Department Nadeem Dar
has been assigned the task to launch Urdu website of the FBR, while Member IT Begum Raana Ahmed has also been directed to launch the same. All the relevant information on English web site will be available in Urdu web site too. Sources also told that in future all notiOications of FBR will be issued both in English and Urdu languages respectively. It is pertinent to mention here that traders demanded many times to launch web site in Urdu and provide all relevant information on taxes in Urdu language.
gled goods . During past couple of weeks various premises were raided and smuggled goods worth millions of rupees including diesel, foreign origin cloth, petrol, vehicles etc have been seized. Despite scarcity of resources the action against smuggling are continue with full force and staff have been instructed to be more vigilant in this regard.
RTO-I collects over Rs 16b revenue in Q1 he Regional Tax Office-I (RTO-I) has collected Rs 12.634 billion in terms of income tax while sales tax collection remained negative as only Rs 4.09 billion were collected in September. Income tax collection of the first 10 days of the recent month remained Rs 2.581 billion. —CB Report
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Minister vows smooth gas supply in winter Friday, October 16, 2015
Business
ISLAMABAD - Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Wednesday said that the uninterrupted gas supply will be ensured for domestic consumers during the winter at affordable prices. Talking to a news channel, he said that the government was striving to provide gas to the industry as well, adding that after the passage of 18th amendment, some matters with regard to commodity have to handle by the provincial governments. The minister said that All Pakistan Textile Mill Association (APTMA) should shun its strike and also cooperate to resolve the issue amicably.
KSE 100-index extends losses by 53pts on bearish trading KARACHI
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he Karachi Stock Exchange benchmark 100-index lost 52.89 points or 0.16 percent to reach 33921.96 points and volume of 76,992,780 shares on Thursday. Although market capitalisation has gone up by a massive 111% over the last three years, total capital listed on the stock exchange has grown by just 11.1%
China Air starts services for Pakistan
during the same period. However, privately held companies seem to have become more interested in going public of late. The last Oiscal year saw nine new listings on the KSE as
World Bank Country Director calls on Finance Minister Ishaq Dar
ISLAMABADI
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hina Air has launched Pakistan services to promote people to people contact between the two friendly countries. A special ceremony was held at the Chinese Embassy here on Wednesday which was attended by the high ups of the China Air. Sources in the Chinese Embassy said that China Air would further expand its operations in Pakistan by connecting all the major cities in Pakistan.
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opposed to Oive, four and four listings in the preceding three Oiscal years, respectively. "Bearish activity was witnessed at the KSE amid proOit-taking in oil stocks after fall
in WTI crude prices near to $46 / barrel," Ahsan Mehanti at Arif Habib Corporation said. The KSE 100share Index declined by 56.93 points, or 0.17 percent, to 33,974.85 points. The index moved both the sides of the fence by 230.64 points between intraday high of 34,127.44 points and intraday low of 33,896.80 points. On Wednesday, Karachi Stock Exchange's (KSE) benchmark-100 Index slipped below the threshold of 34,000 points with a drop of 0.17 percent, as investors sold oil and associated stocks on extended decline in the international oil prices.
ISLAMABAD
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he newly appointed World Bank Country Director for Pakistan, Patchamuthu Illangovan called on Finance Minister, Mohammad Ishaq Dar here. The Federal Finance Minister Dar welcomed Patchamuthu Illangovan to Pakistan and assured him of full support and cooperation during his
tenure. The new Country Director conveyed to the Finance Minister warm regards from World Bank President and Managing Director and lauded the overall reforms introduced by Pakistan, especially in the energy sector. He also conveyed their appreciation for the dynamism with which the Finance Minister led the energy sector and growth reforms. Patchamuthu Illangovan on this occasion exchanged views with the Finance Minister on the ongoing and planned funding by World Bank for various projects in Pakistan. Patchamuthu Illangovan said that
Pakistan had already qualiOied for IBRD funding due to its remarkable economic performance and it was important now to open Oinancing as soon as possible and identify projects for the process. The Finance Minister welcomed the plans of World Bank to draw up guidelines for IBRD Oinancing. Finance Minister said that the Prime Minister accorded great importance to promoting regional connectivity. In that vein the Minister discussed with Patchamuthu projects of regional connectivity including Torkham-Jalalabad road project as well as CASA-1000.
with plug and play convenience and having no adverse environmental impact coupled with zero cost of fuel. On the back of such environment, he observed that the federal government initiated many solar projects on private investment basis at the end of 2014. The National Electric Power Regulatory Authority (Nepra) determined a reasonable tariff in May 2015 in order to attract investment in this untapped potential of solar energy in Pakistan.
Later, several developers started working on the development of solar independent power producers in Pakistan, said the investor. The projects are approaching at various stages of completion and signiOicant amount of investment has already been made in their development. However, he lamented that Nepra notiOied to initiate suo motu proceedings to revise tariff downwards by a signiOicant percentage of approximately 40 percent in the last
FIA arrests two for illegally transferring funds abroad KARACHI
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he Federal Investigation Agency (FIA) on Wednesday conducted a raided on the Karachi Stock Exchange premises to arrest two people for illegally transferring money abroad and recovered foreign currency worth millions. An FIA spokesperson confirmed that officials from their corporate crime wing had raided the old stock exchange building in Karachi. He added that the money recovered was being sent abroad through the illegal channels of hawala and hundi. “Foreign currency worth Rs25 million was recovered during a raid,” the spokesperson said, adding, “Evidence of hawala, hundi was also found.” The suspects, identified as Owais and Mateen, have been booked and are currently being questioned by FIA officials. The two suspects were apparently visiting a money changer located within the stock exchange building. Despite repeated attempts, The Express Tribune was unable to get through to KSE Managing Director Nadeem Naqbi — the sole spokesperson for the exchange, to comment on the incident.
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Nepra to cut upfront tariffs KARACHI
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nvestment of billions of dollars in solar projects has been put at stake as the power sector watchdog is going to signiOicantly reduce the power tariff for upcoming projects, industry sources said on Wednesday. Currently, investors are contemplating to execute solar projects,
having 5,000 megawatts of production capacity with accumulative Oinancial outlay of approximately $7.5 billion, said an investor on the condition of anonymity. The investor said investment in the solar power sector has gained momentum following the completion of Punjab government's solar project, Besides, he added that solar renewable energy has become one of the fastest developing technologies globally in the power sector,
week of September 2015 for which a hearing is scheduled today (Thursday). Industry sources believed that this revision has no practical basis and the only effect it has is discouraging genuine investment in a country at a time when there is a deOicit of 7,000 megawatts in electricity demand and supply. The sources said power regulator did a wrong thing by making output of Qauid-e-Azam solar park a standard for evaluating tariff for upcoming projects.
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hief Collector Enforcement South Zahid Khokhar has said the Pakistan Customs is trying its best to provide best facilities to the exporters and the examinations of export consignments are cleared at the earliest. “There is no refund and rebate claims pending with the Enforcement South Collectorate, however, if any, exporter identifies the issue, the same would be paid at the earliest,” he said this while addressing exporters at Pakistan Hosiery Manufacturers Association. Collector MCC Exports Dr Saifuddin Junejo, Collector Exports Port Qasim Agha Shahid Majeed and Deputy Col-
lector Ali Aijaz were also present on the occasion. Zahid Khokhar said that smugglers involved in gold smuggling caused major loss to the national exchequer and these smugglers got memberships of the Pakistan Gems and Jewelry Association by changing their pictures. And, after that these people imported gold by using fake or forged E-form through Trade Development Authority of Pakistan (TDAP). “The scanners have been installed for the clearance of consignments, but the staff is not much trained,” Zahid Khokhar added. Meanwhile, KARACHI: The Model Customs Collectorates Preventive, Hyderabad, Quetta, Gwadar of EnforcementSouth Region and Export (Port Muhammad Bin Qasim) collected at
least Rs 3187.52 million head of customs duty d month of September 2015. According to details avai Customs Today, the MCCcollected Rs 2519.30 millio of customs duty while Rs 4 lion was collected on Septe The MCC-Hyderabad co amount of Rs 268.25 millio duty and Rs 70.52 million i gle day i.e. September 30, 2 The MCC Exports (Port M Bin Qasim) collected Rs 185 and Rs 4.53 million on Sep 2015. Moreover, the MCClected Rs 212.03 million in month while Rs 30.33 mill tember 30. The MCC-Gwada an amount of Rs 240.01 mil 114.71 million on Septemb
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under the during the . ilable with -Preventive on in terms 420.14 milember 30. ollected an on customs in just a sin2015. Muhammad 5.44 million ptember 30, -Quetta coln the whole lion on Separ collected llion and Rs ber 30.
Friday, October 16, 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
Bids to broaden tax net
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tug-of-war between the government and the business communities, which started with imposition of 0.3 percent withholding tax on bank transactions, has been continuing since the start of the new financial year and the both sides are still not ready to budge from their respective positions. The finance ministry has made it clear that deduction is an attempt to bring non-tax filers into the tax net and the deducted money will be returned to the businessmen who will file their tax returns. This is very simple method before the policymakers to collect tax without realizing that not all the bank accountholders are businessmen. However, the fact also remains that Pakistan is one of the countries where only 0.3 percent of the total population pays direct taxes, recording one of the lowest tax to GDP ratio in the region — only 9.45 percent. It is unfortunate that most of the individuals from the affluent classes avoid paying taxes, but the government reduces its revenue losses by imposing indirect taxes which count for 55 percent of its total tax collections. At least 45 percent revenue is collected through direct taxes in which the share of withholding tax is 70 percent. It is to be noted that indirect taxes are applied on all and sundry but only rich and middle classes are liable to pay direct taxes. The revenue collected through direct taxes is used on general welfare and development projects. However, inadequate tax collection forces the government to take loans from the World Bank and the International Monetary Fund to launch development projects in the country. This starts a vicious circle of debt servicing and the country further plunges into financial crisis as the government has to take more loans on heavy interest rates to pay back the already consumed loans. Acquiring loans also open floodgates of foreign interference in the country’s affairs. In a recent report, the IMF has expressed dissatisfaction on tax collection policies of the government, asking it to increase tax net to collect more revenues. The donor agency has also called for capacity building of the tax collection officials to meet the revenue targets. It says that low tax ratio is hampering economic development of the country. There are two things to concentrate if the government is really serious in enhancing the tax revenues. First, every individual, who is doing business even at a small scale, should have a tax number and the second a foolproof mechanism should have to be evolved not only to plug loopholes in tax evasion, but also close the doors of corruption. A taxpayer also needs respect and protection from highhandedness of the government officials.
Need to revise customs rules A
LAHORE
DR AFTAB AFZAL
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ccording to reports appearing in the Customs Today, various branches of the Customs department conOiscated goods worth millions of rupees in September across the country. The seized goods included ladies cloth, cumin seeds, cigarettes, juices, chocolates, auto parts and polyester fabric. As a matter of fact, the customs department seizes tonnes of goods every month and conOiscation is regarded as a routine matter. The seized goods are disposed of or put to auction later on. The point is how the goods make their way into the country
despite heavy presence of army, rangers and coast guards on the borders and coastal areas. The smuggling of dutiable or contraband items suggest security lapse on the part of the ofOicials who are deployed to guard the country’s frontiers. The items which are frequently seized by the customs department are Iranian goods, including oil, diesel, ceramics tiles and blankets. The customs department has now begun to make close liaison with security agencies, including rangers and coast guards to stop the menace of smuggling in the country. However, despite all these kinds of arrangements, the smuggling still continues at an alarming rate. According to some ex-
perts, the Afghan Transit Trade is also a source of smuggling as the items, which are imported through this channel, are ultimately land into Bara markets in various cities of the country. Smuggling is not only harmful for local industry, but it also deprives country of billions of rupees taxes and duties. Reviewing the situation, every Oinger is pointed on the federal government which has failed to revisit existing laws to curb smuggling and adopt a realistic approach toward the situation. If the smuggled Iranian oil is available in Pakistan on the cheapest rates, it should be a point to ponder for the government to change its laws to allow legal import of goods from the
neighbouring country. It should also be noted that why Iranian ceramic tiles are of good quality and cheaper than those are manufactured in Pakistan. On another note, Iranian blankets are freely available in every market across the country. If this is the situation, why the government does not opt for a free trade agreement with the brotherly Islamic country or takes steps to minimize taxes and duties on the Iranian products? The world is heading toward integration and trade barriers within the countries are being softened. There is a need to enhance trade with Iran and support it on every international forum for a common cause which is the economy.
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Bengal Chamber to create research cell with US-based consulting firm KOLKATA: City-based Bengal Chamber of Commerce and Industries (BCCI) is making all efforts to create a research cell for the state for which it has tied up with US-based consulting firm Frost & Sullivan. “We are trying to create a research cell for West Bengal and the chamber has tied up with Frost & Sullivan. Collaborations will also be done with other premier institutes of the state,” BCCI president Ambarish Dasgupta told reporters here today. He said Frost & Sullivan would be infusing money to create the cell. Consulting firm Frost & Sullivan provides market research and analysis, growth strategy consulting, and corporate training services across multiple industries. During the current financial year, BCCI would focus on areas like agriculture, MSME, healthcare and skill development.
Kashmir Chambers join hands to fight divisive elements he business chambers of Kashmir and Jammu on Monday resolved to fight the divisive elements in Jammu and Kashmir together and said that they will leave no stone unturned to safeguard the special status of Jammu and Kashmir. Addressing a press conference at KCCI headquarters in Srinagar, the Jammu Chamber of Commerce and Industries (JCCI) president, Rakesh Gupta, said, “we condemn the recent attack on three Kashmiris in Udhampur; we demand identification of the accused and stringent action against them.” KCCI office bearers Mushtaq Ahmad Wani, Faiz Ahmad Bakhshi and various former presidents of the Chamber including Nazir A Dar, Rauf Punjabi, G M Dugga and Dr Mubeen Shah were present at the presser. Gupta said that the JCCI has learnt lessons after 2008 economic blockade. “Let me be frank, we got nothing out of it,” he said, “we have to work handin-hand to develop.” Gupta said that there are many agencies working in J&K who want to keep the “pot boiling”. “There are many agents, whether government or non-governmental, they are hell bent to divide us and we warn them it will have serious consequences,” he said. Gupta further added, “there are various unaccounted security funds. Neither politicians nor security agencies want peaceful atmosphere in J&K.” A joint resolution of the chambers said, “we condemn the attack on innocent truckers by the politically motivated goons and the ineffective action taken by the government to curb them with a heavy hand.” Gupta said that he was ashamed as “J&K is a beggar state”. It is because of Government of India (GoI),” he said, “why is there no policy to make J&K an economically independent state? Why is there a need to go for begging funds from GoI?” He said, “we want to have our own resources so that we sustain ourselves.”
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Friday October 16, 2015
Chambers
LCCI launches membership form in Urdu I
LAHORE
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n line with Supreme Court of Pakistan’s orders, the Lahore Chamber of Commerce and Industry on Wednesday took another historic initiative by issuing its membership form in Urdu. The form in Urdu is easy to understand and would enable small businessmen to get it done without any external help. The LCCI president Sheikh Muhammad Arshad said that during his election campaign, he had promised with the members to issue membership form in Urdu. He said that the Lahore Chamber of Commerce & Industry has become the Oirst Chamber in country that has converted its one of the major documents in national language Urdu. “If we want to get economic stability, we must have to assert ourselves as a nation” the LCCI President said. Sheikh Muhammad Arshad said that the LCCI membership form in Urdu would enable its member to learn the process of membership quite easily. He said that the Lahore Chamber
of Commerce & Industry is the only Chamber of the country which has implemented orders of Supreme Court of Pakistan in true sense of word. The LCCI president urged the Federal Board of Revenue to issue income all tax related documents in our lucid language Urdu to make tax system simple and easy to under-
stand for the business community. He said that Tax Return Form should be in the national language and contain only one page so that everyone can understand it easily and can perform his national obligation. Sheikh Muhammad Arshad said that due to difOicult and complex tax documents in English lan-
Malta Chamber underlying priorities of 2016 Budget
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he Chamber of Commerce said it noted the underlying priorities of the 2016 Budget Speech, namely Oiscal consolidation, strong economic growth and better living standards for all. It however noted a decline in capital expenditure for 2016 and that demands for energy tariff reduction were not taken up to the detriment of Malta’s general competitiveness position. “All in all, however, this Budget continues to acknowledge the private sector’s important role in the economy. On its part, the Malta Chamber is committed to work towards supporting the growth of business, employment and prosperity in Malta. “This year’s budget continues to build on last year’s endeavours in a
number of other areas including income support for low and middleincome earners and pensioners, further investment in human resources, environmental initiatives and the real estate sector,” the Chamber said. It said data for the Maltese economy was encouraging, but the country must not allow for any complacency and must at all costs ensure that there are no slippages in at least three areas: namely, public Oinances, revision of labour market policies, and PPPs. The Chamber welcomed government’s commitment to address the country’s ease of doing business rankings, updating bankruptcy legislation, streamlining tendering procedures, and reducing the performance guarantees from 10 per cent to 4 per cent. The Chamber said it fully supported the shifting of a number of products falling under this Eco-Contribution Act to the excise duty
regime, but it said it was surprised that little or no consultation took place on this measure ahead of the Budget. “This, particularly in the light that this shift will surely affect the business operations of law abiding companies in the immediate term at a sensitive period of the year,” the Chamber said. The Chamber was disappointed to note that that there were no measures to address the further lowering of energy tariffs for business, which was the Chamber’s prime recommendation prior to this year’s Budget. “It is feared that this fact may support the further gradual erosion of Malta’s competitive position in cost-sensitive sectors relative to other regions and states. “In terms of competitiveness, the Chamber is also disappointed to note that little or no mention was made to the proposals made by the Chamber in the Oield of Research, Technology, Development and Innovation (RTDI).”
guage, the majority of traders fail to understand which affects the efforts of the government for expansion of tax net. He said that if Federal Board of Revenue takes this initiative immediately, it would not only strengthen the public-private relations but would also help expand the tax net as businessmen would understand tax documents in a better manner and would come into the tax net voluntarily. Meanwhile, In a statement issued here, the LCCI president Sheikh Muhammad Arshad said that the high cost of doing business has not only ousted Pakistani textiles from the international marketplace but is also jacking up the graph of unemployment. The LCCI president said that it is not the textile industry only that is suffering because of high cost of doing business and non availability of energy but almost every sector is facing same situation that is giving a bad name to the government. “The Lahore Chamber of Commerce and Industry believes that the government would listen to the grievances of the textile industry and come up with package of incentives sooner than later”, He added.
WB country director calls on Ishaq Dar he newly appointed World Bank (WB) Country Director for Pakistan, Patchamuthu Illangovan called on Finance Minister Ishaq Dar on Wednesday. Ishaq Dar welcomed Patchamuthu Illangovan to Pakistan and assured him of full support and cooperation during his tenure. The new Country Director conveyed to the Finance Minister warm regards from World Bank President and Managing Director and lauded the overall reforms introduced by Pakistan, especially in the energy sector. He also conveyed their appreciation for the dynamism with which the Finance Minister led the energy sector and growth reforms.—CB Report
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HK Customs foils attempt to smuggle 3.2m sticks of illicit cigarettes Friday October 16, 2015
World
HONG KONG: Hong Kong Customs detected a suspected smuggling case of illicit cigarettes at Lok Ma Chau Control Point. About 3.2 million sticks of suspected illicit cigarettes were seized from an incoming lorry. The market value of the cigarettes was about $8.5 million with a duty potential of about $6 million. Customs officers yesterday morning intercepted an incoming lorry declared to have 334 cartons of paper bags at Lok Ma Chau Control Point. After thorough inspection, Customs officers found about 3.2 million sticks of suspected illicit cigarettes in another 244 carton boxes. The illicit cigarettes were mix-loaded with other goods and concealed in the rear part of the compartment. The 48-year-old male driver was arrested and the vehicle used for conveying the suspected illicit cigarettes was detained.
Dubai Customs honored with ‘Int’l Standard for Service Excellence’ CUSTOMS BULLETIN REPORT www.customsbulletin.com
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Malaysian Customs to use new information system from Jan 2016 he Royal Malaysian Customs integrated information system Ubiquitous Customs (uCustoms) is on track to be implemented in January 2016. Dubbed as a system to combat corruption, uCustoms is a hassle-free platform without the involvement from Customs officers. Customs deputy directorgeneral (Customs & GST) Datuk Subromaniam Tholasyv said the uCustoms would replace the 18-year-old Customs Information System. “It would go live on Jan 1 next year. This system will also allow the latest data related to shipping information and declaration of import/export trade to be shared with authorised partners,” he said at the opening of the Exit Conference on Malaysia Time Release Study 2015 here time. —CB Report
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BANGKOK
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DUBAI
s part of the audit and assessment procedures carried out by the British Standard Institution (BSI) in DC’s Customer service centers, three new customs centers bagged The International Standard for Service Excellence (TISSE), following a number of other customs centers that have been audited, assessed, and then awarded this internationally accredited certiOicate in 2014. The three awarded centers are Al Hamriya Port Center, Port Rashid’s Customer Service Center and Dubai Multi Commodities Customer Service Center. Dubai Customs is the Oirst customs department in the world to be awarded the International Standard for Service Excellence. Last year, Dubai Customs’ main building as well as Oive customs centers successfully completed the assessment processes carried out by the BSI and acquired TISSE, thanks to its excellent and advanced performance, not to mention providing the best customs services, in accordance with its strategy aiming
Home minister bans Thai Customs on special lanes
to fully please and satisfy the customers. “The fact that these three customs centers bagged TISSE in 2015, and the main building and other Oive customs centers also bagged this accredited certiOicate in 2014 primarily proves that Dubai Customs plays a leading role among the world’s customs departments,” Ahmed Abdul Salam Kazim, the Director of Strategy & Corporate Excellence stated. “Such recognition is undoubtedly a
notable achievement. Clearly, Dubai Customs now reaps the harvest of the development, upgrading, and smart transformation processes previously carried out. Aiming to achieve high quality and corporate excellence and provide the world’s latest customs systems and technologies, Dubai Customs applies the top standards and qualiOications, in line with Dubai Government’s plan of full smart transformation, ” Kazim added.
Sri Lanka Customs nabs smuggler with 23kg of Wallapatta chips
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local passenger who had tried to smuggle over Rs 9 million worth of locally known as Wallapatta (Gyrinops Walla) was arrested at the Bandaranaike International Airport (BIA) this morning. The Customs Department stated
that the 43 year old man was detained at the departure lounge of the Airport with 23.300 kg of Wallapatta chips valued at Rs. 9.3 Million. The Customs Department are conducting further investigations in this regard.—CB Report
he Home Minister has been asked to revoke a directive banning Malaysia and Thailand Customs ofOicers from using the special lanes at the Customs, Immigration and Quarantine Complex here. Bukit Kayu Hitam assemblyman Datuk Ahmad Zaini Japar said currently, the special lanes could only be used by military and police personnel. He said the directive was issued by the ministry’s secretary-general Datuk Seri Alwi Ibrahim and took immediate effect, following a visit to the complex on Sept 17. “Over the past 27 years, Customs ofOicers from Malaysia and Thailand could use the lanes for various purposes. “Likewise, Thailand has allowed government ofOicers from Malaysia to use the special lanes at their border entry. “But now, we have been receiving complaints from the Thai ofOicers that they are no longer
allowed to use the special lanes to enter Malaysia. “We don’t want this issue to jeopardise the existing good ties between ofOicers from the two countries,” he told reporters here yesterday. Ahmad Zaini said recently, an ofOicer from the Malaysian Consulate to Thailand had also been barred from using the special lanes and was asked to use the normal lanes. He said a letter concerning this matter had been sent to Deputy Prime Minister Datuk Seri Zahid Hamidi, who is also Home Minister, on Oct 3, and it was hoped that a solution to the problem would be found soon. The directive, he said, had also caused problems to 100 workers in the duty-free zone here as they now had to pay toll of RM3.60. “Before this, the workers were allowed to use the special lanes to the duty-free zone. “On average, they earn only RM900 monthly and if they are forced to use the toll lane, it will definitely burden them,” he added.
US Customs seizes 2,160 pounds of marijuana worth $1,728,000
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ore than one ton of marijuana was seized at local ports of entry over the holiday weekend, ofOicials said. In nine seizures, U.S. Customs and Border Protection ofOicers seized 2,160 pounds of marijuana with an estimated street value of $1,728,000, ofOicials said. “CBP ofOicers are working hard and remain vigilant in supporting our primary homeland security mission,” said Beverly Good, CBP El Paso port director. “Those inspections will often lead to the discovery of
other violations, like the drug seizures recorded this weekend.” One of the largest seizures took place Friday at the Bridge of the Americas when a 2006 Chevrolet Silverado arrived at the port just after 10 a.m. An ofOicer noticed something odd about the vehicle’s undercarriage, and a drug-snifOing dog tipped ofOicers off to the presence of narcotics, ofOicials said. After scanning the vehicle, ofOicers found 202 bundles Oilled with marijuana hidden throughout the vehicle. —CB Report
Nigerian Customs tightens border area for smugglers
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he Headquarters Special Assignment team, Idiroko axis of the Nigeria Customs Service (NCS), is making life difOicult for smugglers in the area. The team, led by the Assistant Comptroller, Shittu Abdul-Maruf, it
was gathered, has sent many smugglers out of business because of its unique approach. The team, investigation revealed, parades all approved and unapproved routes around the border to stem the cycle of criminalities by the smugglers. When The Nation visited the area last Saturday, many vehicle dealers around Idiroko, Owode and Atan complained about the ability of the
team to tame car and frozen foods smugglers. The ability of the team leader to deploy the tools of Information Communication Technology (ICT) and the window provided for him by the Customs to conOirm the authenticity of vehicle documents of importers, it was gathered, now makes car smuggling unattractive in his area. The team, it was gathered, now
carries out anti-smuggling campaigns in all areas, which hitherto provided a safe haven for smugglers and disrupts the economic activities of those patronising the smugglers in the area, The team, Oindings revealed, has achieved a commendable breakthrough in anti-smuggling in the area based on the huge volume of seizures it has recorded in recent times.
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Auckland port study to consider shift to new location AUCKLAND: The final scope of the Auckland Council-commissioned study shows it will weigh up the merits of options ranging from little change, through to building a new port entirely some time in the next half-century. Rick Boven – who is the chair of the working group overseeing the eight-month review – said external consultants would be chosen in coming weeks and will start work in November. The study was commissioned after heated debate over plans by the council-owned Ports of Auckland to extend two wharves further into the inner harbour. The company changed its mind over one extension, and decided to delay plans for the second after the resource consent was found to have been wrongly granted.
Darwin’s $506m port sale shows the savvy, courage of NT leadership he $506 million sale of the Port of Darwin to a privately owned Chinese industrial conglomerate called Landbridge Group stands very public testimony to the political courage of the Northern Territory’s bold Chief Minister, Adam Giles. Australian ports have generally been acquired by fairly orthodox infrastructure investors. You know the beasts we are talking about. Funds managers of renown like Brookfield, Macquarie and Hastings tend to move around the globe hunting defensive assets like ports that boast transparent, predictable income streams, that eat up relatively low levels of sustaining or growth capital, and that generate consistently strong fee flow for their managers. —CB Report
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Port expansions taking too long, say exporters he work that starts this week will widen the Port of Tauranga harbour entrance channel and deepen the shipping lane from 12.9 metres to 14.5m inside the harbour and to 15.8m outside. Dredging will allow ships to enter the port 50 percent more laden than existing vessels. But it took a four year legal battle to make this happen and exporters say this process was too slow, especially with a widened Panama Canal due to send ever-bigger ships into the Pacific Ocean. Port company chief executive Mark Cairns said the work was essential if New Zealand was to keep building export capacity as the government wanted. “This first stage of dredging will allow us to handle 6500 container vessels at low tide,” he said. —CB Report
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Port of Los Angeles traffic up to highest August level in 9 years he Port of Los Angeles reversed two months of declining traffic to post a 3.8 percent increase in cargo for August from a year ago. The port handled a total of 786,677 20-foot equivalent units (TEUs) in August, the strongest August performance since 2006, when 790,726 TEUs moved through the port complex. The port’s cargo traffic fell 2.5 percent in July and 2 percent in June.—CB Report
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Ports & Shipping
Exports are coming up empty at US ports Major gateways say more ocean containers are shipping out empty, a sign of weak demand in troubled global markets and the tough sell American exporters face abroad
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ne of the fastest-growing US exports right now is air. Shipments of empty containers out of US are surging this year, highlighting the impact the economic slowdown in China is having on US exporters. The US imports more from China than it sends back, but certain American industries—including those that supply scrap metal and wastepaper—feed China’s industrial production. Those exporters have suffered this year as China’s economy has cooled. In September, the Port of Long Beach, Calif., part of the country’s busiest ocean-shipping gateway, handled 197,076 outbound empty boxes. They accounted for nearly a third of all containers that moved through the port last month. September was the eight straight month in which empty containers leaving Long Beach outnumbered those loaded with exports. The empties are shipping out at a
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faster rate at many US ports, particularly those closely tied to trade with China, while shipments of containers loaded with goods are declining as exporters Oind it tougher to make foreign sales That’s at least partly because the strong dollar makes American goods more expensive. Normally, after containers Oilled with consumer goods are delivered to the US and unloaded, they return to export hubs. There, they typically
are stuffed with American agricultural products, certain high-end consumer goods or large volumes of the heavy, bulk refuse that is recycled through China’s factories into products or packaging. Last month, however, Long Beach and the Port of Oakland both reported double-digit gains in exports of empty containers. So far this year, empties at the two ports are up more than 20% from a year earlier.
Port of Los Angeles emissions show dramatic drops
he Port of Los Angeles has set new records for reducing harmful emissions from port-related activity, with diesel particulates down an unprecedented 85 percent in the past 10 years and sulfur oxides bordering on total elimination. The latest pollution-reduction Oigures, contained in a report released
Thursday, indicate the port not only has reached its 2014 goals but, in many cases, has hit its 2023 targets. Christopher Cannon, director of the port’s Environmental Management Department, said in a telephone interview Thursday that he isn’t surprised. “Our success has to be attributed
to the fact that the port and business industry worked together in a collaboration to Oind ways to do this,” said Cannon, who began his career with the port in the early days of the pollution Oight launched under former Mayor James Hahn in 2001. “There are a lot of very creative people in the business community.”—CB Report
Friday October 16, 2015
Diana Shipping Inc. announces time charter contract for m/v melite with Cargill iana Shipping Inc. a global shipping company specializing in the ownership of dry bulk vessels, announced that, through a separate wholly-owned subsidiary, it entered into a time charter contract with Cargill International S.A., Geneva, for one of its Panamax dry bulk vessels, the m/v Melite. The gross charter rate is US$7,250 per day minus a 4.75% commission paid to third parties, for a period of minimum eleven (11) months to maximum fourteen (14) months. The charter is expected to commence tomorrow. The “Melite” is a 76,436 dwt Panamax dry bulk vessel built in 2004. This employment is anticipated to generate approximately US$2.39 million of gross revenue for the minimum scheduled period of the time charter. Diana Shipping Inc.’s fleet currently consists of 41 dry bulk vessels (2 Newcastlemax, 12 Capesize, 3 Post-Panamax, 4 Kamsarmax and 20 Panamax). The Company also expects to take delivery of one new-building Capesize dry bulk vessel by the end of October 2015, one new-building Newcastlemax dry bulk vessel during the second quarter of 2016, as well as one newbuilding Kamsarmax dry bulk vessel and one new-building Newcastlemax dry bulk vessel during the third quarter of 2016. As of today, the combined carrying capacity of the Company’s fleet, excluding the four vessels not yet delivered, is approximately 4.7 million dwt with a weighted average age of 7.51 years. A table describing the current Diana Shipping Inc. fleet can be found on the Company’s website, www.dianashippinginc.com. Information contained on the Company’s website does not constitute a part of this press release.
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Ports in California get new funding option
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LOS ANGELES
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alifornia Gov Jerry Brown on Monday signed a bill that will enhance the ability of ports to secure additional bond revenue for infrastructure and environmental projects. This will make it easier for Los Angeles, Long Beach and Oakland, three of the six largest US container
ports, to be more competitive through freight infrastructure development. “Our ports must pay for new investments in the next generation of infrastructure and environmental quality improvements,” said Mike Jacob, vice president and general counsel of the PaciOic Merchant Shipping Association, whose members are shipping lines and terminal operators. Senate Bill 63 provides new Oinancing options for adding
cargo capacity and air quality improvement projects, he said. The new mechanism contained in the bill will allow ports to work with cities and counties to establish seaport infrastructure Oinancing districts to underwrite revenue bonds in anticipation of future tax revenue generated from the growth in cargo volumes. Existing Oinancing mechanisms and possessory taxes on facilities al-
ready generate millions of dollars for port-related infrastructure development based upon the assessed value of the property. For example, the ports of Long Beach and Los Angeles are engaged in a 10-year capital expansion program that will result in about $6 billion of new and rebuilt container terminals, a new bridge, on-dock railyards and environmental enhancement projects as the ports work toward zero-emission operations.
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Australian Border Force seize 6 million smuggled cigarettes MELBOURNE: Almost 6 million cigarettes smuggled into Australia by an illegal tobacco syndicate have been seized by Australian Border Force (ABF) members. Three storage facilities and a number of homes in Melbourne’s western suburbs were recently raided as part of a four-month investigation, ABF said. Nearly 10 tonnes of tobacco products were discovered to have been smuggled into Australia from the United Arab Emirates in June.
Friday, October 16, 2015
CUSTOMS BULLETIN
PAC directs Bajwa to issue refund claims of steel melters ISLAMABAD M FAIZAN
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ublic Accounts Committee (PAC) Chairman Khurshid Shah has directed Federal Board of Revenue (FBR) Chairman Tariq Bajwa to clear all pending refund claims of steel melters without any delay. As per details, a delegation of Pakistan Steel Melters Association called upon the PAC chairman and raised the refunds issue. According to the association, refund claims involving almost Rs 2.5 billion were not cleared by FBR that must be cleared on top priority basis. On the other hand, the FBR chairman said that he will get the data from the ofOicers to know the actual amount of refunds. Member Inland Revenue Operations Muhammad Ashraf Khan was also present in the meeting and said that PAC will be informed about exact amount of refunds after estimation. Meanwhile, Federal Board of Revenue (FBR) Tariq Bajwa has informed the subcommittee of Public Accounts Committee (PAC) about the measures being taken to collect details of tax evaders in different
areas. Giving briefing on the audit objections 2007-08, Bajwa said that more non-taxpayers are being brought into the tax net through
assessing their lifestyle. He said that the Board would collect information of foreign travelling, electricity bills details (which come in
the range of 50,000 to 200,000), fee of children, etc. The subcommittee of Public Accounts Committee, chaired by Sardar Ashiq
Gopang, was informed that the government is taking steps to catch tax evaders by identifying their hidden economy in the country.
SHC orders customs to release vehicles on a conditional basis KARACHI
MUHAMMAD YOUSAF www.customsbulletin.com
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he Sindh High Court (SHC) on Wednesday ordered the customs authorities to immediately comply with its order regarding conditional release of used concrete transit mixer trucks. Justice Munib Akhtar, who headed a division bench, directed the petitioner importers to deposit the differential amount of duty and
taxes with Nazir of the court for issuance of appropriate certiOicate to get release of 68 vehicles. The bench had taken up a contempt of court application Oiled by Haji Ihsan Ullah and others, who requested the court to initiate contempt proceedings against the customs ofOicials Umar Shafeeq and Imran Afzal for Olouting its order regarding release of their vehicles. Advocate Sarfraz Ali Metlo and Dilkhurram Shaheen submitted that his clients had imported 85 old and used concrete transit mixer trucks six months ago but they were not being released by
the customs department on the ground that the importers mis-declared the value of their vehicles and violated the Import Policy Order 2013. They said that the court earlier on September 11 ordered provisional release of the vehicles with direction for the petitioners to deposit disputed amount of duty and taxes with Nazir of the court. However, the court’s orders were not obeyed. During previous hearing, the court had issued notice to the Additional Collectors Umar Shafeeq and Imran Afzal to show up before it and explain why they have failed to comply with
court orders. On Wednesday both ofOicials showed up before the court and tendered unconditional apology for disobedience of the court order. They also submitted their statements which were taken on record by the court. The customs ofOicials told the judges that following the court order, the importers were told to deposit the differential amount with Nazir of the court who would issue certiOicate for release of the vehicles. As and when they would submit relevant certiOicate 68 out of 85 vehicles would be cleared and released at Oirst.
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Meanwhile, The Sindh High Court (SHC) has issued notice to the customs authorities, asking them to Oile their replies to the applications, seeking annulment of two FIRs registered against M/s DS Motors, M/s Memon Motors and others for evading duty and taxes in millions of rupees through mis-declaration. A single bench of the SHC also issued notice to the customs’ prosecutor to submit comments till October 28. The applications were Oiled by Muhammad Asif Khan of M/s Memon Motors and Ahmed of DS Motors.