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pAkIStAN’S fIrSt INDeptH NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 206

Karachi, Sat October 17, 2015

ISLAMABAD

SHAHID MINHAS

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ederal Board of Revenue (FBR) Chairman Tariq Bajwa told the Public Accounts Committee of the parliament that the United Arab Emirates

government had refused to provide any details of Pakistani investors who invested in real estate sectors and purchased lavish properties. Sources told Customs Today that during the previous meeting, the PAC asked the chairman to seek details of Pakistani investors from UAE. However, Bajwa also told the PAC members that despite his repeated reminders, UAE government has refused to cooperate with Pakistan.

He also informed that Pakistan and United

Price Rs. 14.00

Arab Emirates are signatories of an accord, according to which the UAE government is bound to provide details required by Pakistan. Tariq Bajwa said, “We are only sending them our requests but unable to pressurize them to seek cooperation.”

It is pertinent to mention here that Directorate General Inland Revenue Department Dr Bashir Ullah sent many reminders, seeking details of Pakistani investors but the reply is still pending.

1,195 complaints filed at FTO by September 30

PCA detects Rs 1.3 million tax evasion by FG Enterprises

Illegal tobacco business huge threat to farmers

CLBC playing vital role in resolving bilateral trade issues

LCCI launches membership form in Urdu

Amid existing maladministration on part of tax collecting departments | See pAge 02 |

Directorate of PCA Karachi has detected tax evasion of Rs 1.390 million | See pAge 03 |

President Anjuman Kashtkaran and Tobacco Hazara Division, Rustam Swati | See pAge 04 |

Trade is a dynamic thing which passes through a number of changes | See pAge 12 |

In line with Supreme Court of Pakistan’s orders, the LCCI on Wednesday | See pAge 09 |

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PEW concerned over WHT on bank transactions Saturday, October 17, 2015

National

LAHORE: Pakistan Economy Watch president Dr Murtaza Mughal said that withholding tax on bank transactions is illegal as well as unethical and is violation of the basic rights of banked population.

The government should not punish masses and the business community for the failure of the efforts to broaden tax base.

In a press statement, he said that the decision to slap additional WHT on bank transaction is extortion which is encouraging underground economy; therefore, the deadlock between the government and traders must be resolved.

1,195 complaints filed at fto by September 30

punjab excise collects rs 8 billion in three months of fiscal year 2015-16

ISLAMABAD

LAHORE

M IMrAN MeHAr

NAeeM uLLAH tArIQ

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mid existing maladministration on part of tax collecting departments, around 1,195 complainants have been submitted before the Federal Tax Ombudsman (FTO) by September 30, 2015.

According to details, 345 General Sales Tax (GST) complaints, 139 Customs Duty complaints, 710 Income Tax and only one complaint of Federal Excise Duty (FED) were Miled at the FTO Secretariat and regional ofMices across the country.

A senior FTO ofMicial said that these Migures did not included pending complaints Miled with the FTO in the preceding years.

He said that fresh and old complaints were being processed. FTO was trying to bring earliest possible relief to taxpayers who had approached FTO for relief.

Meanwhle, The 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

he Punjab Excise and Taxation Department has collected handsome amount of revenue just in first three months of fiscal year 2015-16.

According to financial statements, the department recovered Rs 8 billion in three months which is 38 percent more than the same period of fiscal year of 2014-15.

According to the available data, the Excise Punjab recovered Rs 5 billion in the first three months of the fiscal year of 2014-15. Excise collected a huge share of motor vehicle taxes which stands at Rs 4 billion only in three months. The motor vehicle taxes collected in two months of the fiscal year of 2014-15 stood at Rs 2.2 billion and now up to 30th of September 2015, recoveries in this regard increased up to 40 percent than the specific period last year. The Excise and Taxation Department also recovered Rs 228 million of excise duty which was levied on sale and purchase of alcohol in the province.

In the first three months, the department collected Rs 198 million in the wake of excise duty which is 18 percent extra than the same period of the fiscal year 2014-15.

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.

M/s Imran International evades taxes through under-invoicing KARACHI

AftAB cHANNA

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irectorate of Post Clearance Audit (PCA) detected tax evasion of Rs 461,196 made by the M/s Imran International Linkers through under invoicing. The audit observation has been issued under Section 26 and

32 of the Customs Act, 1969.

The PCA while scrutinizing import data found that M/s Imran International imported “Blender SMTHR13 240V QB7D J2 SL EU and A1-34Q-34S Blender SMTHR13 240V QB7D 22QT J2” under PCT heading 8509.8000 through Model Customs Collectorate Preventive, at a unit value of $97.0 per piece from United States. It is evident from the history of another importer that a case of under valuation of the identical item from the same supplier

and origin i.e. “Blendtec A Division of K Tec USA” has been found and adjudicated vide Order-in-Original (ONO) No. 133222 and 02102013 on the basis of invoice found in the container at the time of examination, showing unit value at the rate of $718.48 per piece and the goods were adjudicated, assessed and cleared by the importer on the found value. The difference of declared and found value is to the extent of approx 640 percent, when freight is added in the fob value.

The import by M/s Imran International Linkers, Karachi, vide above mentioned GD was also made from the same supplier and for the same items, therefore, it is also under invoiced in the same way.

M/s Imran International Linkers, Karachi, were required to pay custom duty and other taxes at the ascertained unit value of $718.48 per piece considering under-invoicing to the extent of 640 percent.

This has resulted in short levy of Rs 230,172 as custom duty, Rs

146,294 in wake of sales tax, Rs 29,923 in wake of additional sales tax and Rs 54,807 as income tax, while the total value is Rs 461,196.

The importers are directed to deposit the short levied amount in the national exchequer within 10 days with intimation to this ofMice.

In case, M/s Imran International Linkers, Karachi, are of the opinion that the above Minding is incorrect or that the short paid amount has been erroneously calculated or it has already been deposited.

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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.

Customs Court rejects bail of suspect involved in sale of Iranian diesel KARACHI

MuHAMMAD YouSAf www.customsbulletin.com

he Special Court of Customs Taxation and Anti-Smuggling has dismissed the bail plea of a suspect involved in the sale of smuggled Iranian diesel.

Judge Syed Faiz Rasool Rashdi dismissed the bail application filed by suspect Noor Akhtar.

According to the prosecution, the Pakistan Customs’ Anti-Smuggling Organization (ASO) raided a godown located in the Korangi area of Karachi and seized 9,700 liters of Iranian diesel on October 02. Alleged smuggler Noor Akhtar was taken into custody from the godown.

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Sialkot ASo confiscates smuggled black tea SIALKOT

guLZAr AHMeD

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he Customs Anti-Smuggling Organization (ASO) Sialkot has seized foreign origin smuggled black tea worth Rs 300,000 in an action.

According to the details, the ASO Sialkot received credible information regarding the smuggling of foreign origin black tea; therefore a raiding party was formed to foil the smuggling bid.

The raiding team intercepted a truck on GT Road and recovered tea.

The raiding party asked the driver to produce legal documents regarding the import of tea, but the accused failed to produce the same.

Upon failure, raiding party seized the tea and registered a case against the accused person. Further investigations are underway in this regard.

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Saturday October 17, 2015

National

pcA detects rs 1.3 million tax evasion by fg enterprises KARACHI

AftAB cHANNA

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irectorate of Post Clearance Audit (PCA) Karachi has detected tax evasion of Rs 1.390 million by M/s FG Enterprises on import of carbon brushes through under invoicing.

The audit observation has been issued under Section 26 and 32 of the Customs Act, 1969.

The PCA, while scrutinising the import data, found that M/s FG Enterprises imported “carbon brushes packed in cartons net weight declared as 1,950 kilogram” under PCT heading 8545.2000 vide Goods Declaration No. KAPE-HC-40242 dated October 14, 2014 and KAPW-HC2204 dated July 04, 2015 through Model Customs Collectorate Appraisement-East and West and got their consignments released at declared unit value of $1.50 per kg from China.

It is evident from the history of the importer that a case of under valuation of the identical item from the same supplier and origin i.e.

“Renqiu Stroghold Carbon Products Company Limited China” has been found and adjudicated vide Orderin-Original (ONO) No. 155013 – 09122013 on the basis of the invoice found in the container at the time of examination, showing unit value at the rate of $10.18 per kg and the goods were adjudicated, assessed and cleared by the importer

on the found value. The difference of declared and found value is to the extent of approx 1046.33 percent.

The imports made by M/s FG Enterprises vide above mentioned GDs were also made from the same supplier and from the same origin of the same item, therefore, it is also under invoiced in the same way. M/s FG Enterprises were required to pay custom duty and other taxes at the ascertained unit value of $10.18 per kg

pcA karachi has detected tax evasion of rs 1.39m by M/s fg enterprises on import of carbon brushes through under invoicing. the audit observation has been issued under Section 26 and 32 of the customs Act, 1969.

Quetta Customs seizes aluminum sheets, scrap KARACHI

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irectorate General Customs Intelligence and Investigation Quetta, during a successful crackdown, seizes aluminum sheets and aluminum scrap which were being smuggled from Afghanistan to Pakistan.

Sources told Customs Today that Customs authorities are tightening

its rope against smugglers to curb the menace of smuggling from society. During various raids, the Customs Quetta seized 19 tons of aluminum sheets, 3 tons aluminum press bundle and one ton radiator.

Sources said that Customs authorities recovered smuggled Iranian diesel, non-duty paid vehicles and other items during different crackdowns in the area during last three months, beside this Customs authorities also arrested 16 smugglers and registered separate cases.

considering under invoicing to the extent of 1046.33 percent. This has resulted in short levy of Rs 443,309 in wake of custom duty, Rs 541,083 under the head of sales tax, Rs 101,960 as additional sales tax and Rs 303,706 as income tax and total short payment of taxes was estimated at Rs 1,390,058. The importers are directed to deposit the short levied amount in the national exchequer within 10 days with intimation to this ofMice.

ANf destroys narcotics worth billions of rupees he Anti-Narcotics Force (ANF) destroyed narcotics amounting to billions of rupees. The ceremony to destroy the seized drugs was held at Beetal School Range.

Addressing the ceremony, Director General Rangers Major General Umar Farooq said, “We are committed to curb the menace of drug smuggling from our society.”—CBReport

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Investors warn of packing bags as NEPRA looks to decrease tariff Saturday, October 17, 2015

Business

ISLAMABAD: In a not-so-veiled warning, foreign investors are showing reluctance over the solar power tariff being proposed by the government and have stated that they might consider moving their business elsewhere.

The National Electric Power Regulatory Authority (Nepra) announced a tariff of 16.3 cents per unit in January 2014, which was revised down to 14.15 cents after a year. Now, the regulator has conducted a hearing where it was proposed that the tariff be reduced further to 9.25 cents per units from January 2016 onwards.

kSe 100-index gains 51 points, closes at 33973 ers were Unilever Pak, Siemens Pakistan XD, Shiel Corporation and Milltan Tractor Limited.

High and low were 34015.187 and 33800.55 respectively. Total volume traded in the market was 82,376,660 shares.

Until mid day, KSE-100 Index was at 33828.49 with a negative change of -93.47 and volume of 33,061,150 shares. High and Low were 34015.18 and 33805.29 respectively. Total volume traded in the market was 55,018,110 shares with 279 total traded companies out of which 138 were up, 130 were down and 11 were unchanged.

KARACHI

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he Karachi Stock Exchange (KSE) benchmark 100-index showing bullish trend gained 51.76 points or 0.15 percent to reach 339973.96 points and volume of 82,376,660 shares on Friday.

The top three advancers were Fauji Cement, Telecard Limited, Jah sidd Company, while the top declin-

pM inaugurates 102Mw hydropower project

pakistan and turkey hold dialogue on free trade Agreement

ISLAMABADI

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akistan Prime Minister Nawaz Sharif has inaugurated the Gul Pur Pan Project in Kotli, Waqt News reported. The project has commenced on River Poonch, Azad Kashmir. While addressing the ceremony the PM said that project will produce 2012 Mega Watt (MW) electricity. “33% work has been completed and it will be finished in 48 months,” he claimed.

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ANKARA

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akistan and Turkey commenced negotiations on a bilateral Free Trade Agreement (FTA). The inaugural session of FTA negotiations concluded in Ankara.

The decision to have a Pakistan-Turkey Free Trade Agreement was taken by Prime Minister

Muhammad Nawaz Sharif and Prime Minister Ahmet Davutoglu during the 4th session of the High Level Strategic Cooperation Council (HLSC) in Islamabad in February 2015. The decision envisaged an FTA covering trade in goods, services and investments.

The Pakistan delegation was led by Ms. Robina Athar, Additional Secretary, Ministry of Commerce, and included Pakistan’s Ambassador to Turkey Sohail Mahmood and Consul General in Istanbul Dr. Yusuf Junaid. The Turkish side was led by Acting

Deputy Undersecretary of the Ministry of Economy Mr. Husnu Dilemre and included senior officials from relevant Turkish departments.

During the talks, the two sides reiterated their commitment to have a comprehensive FTA and conclude the negotiations on a fast- track basis. At the conclusion of the session, the two sides signed the Terms of Reference (TORs) for FTA negotiations. The next round of the negotiations would be held in Islamabad in December 2015.

Illegal tobacco business huge threat to farmers PESHAWAR

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resident Anjuman Kashtkaran and Tobacco Hazara Division, Rustam Khan Swati , has said that drastically growing illicit tobacco business in Pakistan is a huge threat to farmers’ livelihood because the growth of smuggled and duty evaded cigarettes effect their tobacco output.

According to a recently published Nielsen Report, illicit trade in cigarettes is growing at an alarming rate ranging from 23 to 25 percent of total tobacco market. This growth has resulted in directly damaging the livelihood of hundreds of thousands of people dependent on the tobacco crops and business in the Khyber Pakhtunkhwa.

“Tobacco, being a highly labor-intensive crop, about 80, 000 persons are involved in its cultivation, fifty thousands are engaged in 21 factories of the tobacco industry and another one million find indirect employment”, he said. He stressed that due to small land holdings in KP, tobacco was the only choice for farmers to earn decent money.

However, exponential growth in illicit trade would deprive them of their earnings which is going to worsen the economic conditions of poor farmers.

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Pakistan, Russia sign gas pipeline agreement ISLAMABAD

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akistan and Russia signed an agreement on Friday to build a gas pipeline stretching hundreds of kilometres from Karachi on the Arabian Sea to the eastern city of Lahore. Russian Energy Minister Alexander Novak and Petroleum Minister Shahid Khaqan Abbasi signed the agree-

ment at a ceremony witnessed by Prime Minister Nawaz Sharif and broadcast live.

Officials said the North-South gas pipeline project would be built by Russian company RT Global Resources – a part of Russian state corporation Rostec.

The 1,100-kilometre pipeline, with a capacity of 12.4 billion cubic metres per year, will connect liquefied natural gas (LNG) terminals in Karachi with those in

Lahore.

Russia is to invest about $2 billion in the pipeline and its first phase is expected to be completed

by December 2017, a senior government official told AFP. Russia has long been the largest supplier of weaponry to Pakistan’s nuclear-armed arch rival India, which is the world’s top arms buyer. But now Moscow appears to be pivoting towards Islamabad as New Delhi becomes

closer allies with Washington.

Russia’s ITAR-TASS news agency reported in June that the country had lifted its embargo on arms supplies to Pakistan and was holding talks on supplying Islamabad with combat helicopters.

PM Nawaz at the time invited Russian companies to invest in Pakistan, particularly in the energy sector, and benefit from the business-friendly policies of the government.

PM Nawaz at the time invited Russian companies to invest in Pakistan, particularly in the energy sector, and benefit from the business-friendly policies of the government.

The South Asian state is desperate for solutions to a long-running power crisis that has sapped economic growth and left its 200 million inhabitants deeply frustrated by incessant electricity cuts.

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irector Customs Intelligence and Investigation Punjab Saud Imran visited Multan and held a meeting with MCC Multan Collector Sarfraz Ahmad Warraich in Customs House.

During the visit, he discussed the steps for joint operations and stressed the need for coordination between Customs Intelligence and Anti-Smuggling Organization to curb smuggling from region.

Both departments agreed that mutual coordination and sharing of information are required to act against smugglers to curtail the smuggling.

Better coordination will give much fruitful results against smugglers in southern Punjab.

Director Customs Intelligence and Investigation Punjab Saud Imran also visited the Customs Intelligence and Investigation Multan Range Office and chaired a special meeting with Additional Director Customs Intelli-

gence and Investigation Multan abou their anti-smuggling activities. Addi tional Director Customs Intelligenc and Investigation Nisar Ahmad gave the briefing on the performance of Customs Intelligence during the meeting.

Moreover Additional Director Customs Intelligence and Investigation Multan informed him about the existing stratDire egy against the smuggling and applaud stated that three provinces of the of custo country touch Investig the boundary of jurisdiction and fisc we are tackling smuggling with dep increased vigism lance of smuggled

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ut ice

goods.

Director Saud Imran applauded the performance of Customs Intelligence and Investigation Multan during fiscal year 2015-16 as department seized the smuggled goods of Rs 312.6 million.

These seized smuggled goods also involved the Customs duty and taxes of Rs 251.8 million during the previous f i s c a l y e a r n a r 2015Im d ector Sau 16. ance

rm ded the perfo e and enc oms Intellig uring nd gation Multa as -16 cal year 2015 the ized partment se f rs ods o muggled go 312.6m

Saturday, October 17, 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.

economic reforms in provinces A

LAHORE

Dr AftAB AfZAL

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ccording to newspaper reports, the provincial governments are ready to introduce Doing Business Reform Plans in their respective jurisdictions in consultation with the Federal Ministry of Finance. Finance Minister Ishaq Dar has formed a committee comprising the representatives from the federal and provincial governments to share policy initiatives and discuss progress on the Doing Business Reform plans to attract foreign investment in the country. At the Mirst stage, Punjab, Khyber Pakhtunkhwa and Balochistan will Minalise their respective reform plans and meth-

ods of implementation within a speciMic timeframe. In the second stage, the World Bank will be informed about details and methodology of the proposed plans to remove any reservations of the donor agency. The federal and provincial governments will also share lists of potential public sector contributors. The provincial reform plans will initially focus on short term goals which could be achievable in one year while the next medium term plan will take up to three years to implement the plan and develop conducive environment for foreign investment. A strong monitoring mechanism will also be devised to track process of development and progress on the reform plans. The provinces are free to launch economic and

industrial plans after the 18th Amendment and the provincial governments are required to share responsibilities with the federal government which should have a role of just guardian.

The Sindh government is already taking short, medium and long term measures to work out different modalities to implement the reform plan. There is a need to utilize potentials of the public sector contributors and identify impediments in way of industrial growth, especially in the export oriented industries. Though the federal and provincial governments have introduced one window operations to facilitate the business community, but there is a need to curtail the number of laws which some time overlap

and create confusion in the minds of the ofMicials and the entrepreneurs and become a hurdle in the way of in industrial development.

The current situation is that the small and medium enterprises have to comply with a multitude of laws and the government agencies. The time has come the provincial chief executives should accept responsibilities and face economic challenges with a brave heart. Provinces are now independent to launch their own development plans and create business friendly environment in the respective jurisdictions.

Every province should ensure transparency in its financial matters and launch industrial plans in collaboration with local and foreign investors.

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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.

AptMA seeks ban on import of yarn, fabric from India 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 cotton 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 significant 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 almost 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.—CBReport

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Saturday October 17, 2015

Chambers

LccI concerned over poor performance of LeSco authorities T

LAHORE

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he Lahore Chamber of Commerce and Industry Thursday while showing its dismay on the poor performance and bureaucratic attitude of LESCO authorities, has called for LESCO revamping to overcome huge distribution losses revealed in a study conducted by its own Board of Directors.

In a statement issued here, the LCCI president Sheikh Muhammad Arshad said that a total overhauling of the LESCO has become need of the hour in the wake of rampant complaints against the company.

He said that poor performance of the LESCO ofMicials is not only hampering the trade & economic activities but also affecting the growth of manufacturing sector and giving bad name to the government.

Citing an example of attitude of LESCO ofMicials, the LCCI President Sheikh Muhammad Arshad said that it came into his knowledge that despite repeated requests, the present LESCO chief could not spare time for Lahore Chamber.

“If a government ofMicer is not

available to an institution like Lahore Chamber of Commerce & Industry then one can understand well his way of treatment with the common complaints.

He said that it was very unfortunate that the LESCO is playing havoc with the trade & industry and forcing industrialists to observe “black

days & strike” that is not a good omen for economy at all.

“At present when government is striving hard to bring as much as possible foreign investment in Pakistan but LESCO is doing other way and making moves to keep foreign investors away”, Sheikh Muhammad Arshad said.

Pak-Qatar traders should start joint ventures: Ghaznavi

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LAHORE

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ormer vice president of the Lahore Chamber of Commerce and Industry Syed Mahmood Ghaznavi and head of a trade delegation visiting Qatar, said that collaboration between Pakistani and Qatari businessmen would give a jumpstart to the mutual trade therefore businessmen of the both countries should start joint ventures (JVs).

While addressing a meeting at Qatar Chamber of Commerce and Industry, Syed Mahmood Ghaznavi said that Pakistani businessmen should join hands with their Qatari counterparts and avail the opportunities available various sectors of the both countries including infrastructure, tourism, pharmaceutical and healthcare.

He said that massive unscheduled power cuts have ruined the industrial activities while over billing is adding fuel to the fire.

The LCCI President opined that over billing is bound to increase the incidence of electricity pilferage that already is eating up billion rupees and causing irreparable damage to the economy. The LCCI President said that business community is backbone of the economy. How government would run its day-by-day affairs when industrialists will close down their industrial units because of massive load shedding and various other challenges.

He said that at least fifty percent representation should be given to the business doing people in the LESCO Board of Directors.

Meanwhile, In 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.

Shell declares force majeure on base chemical products from Singapore plant oyal Dutch Shell has declared force majeure on base chemical products from its ethylene cracker complex in Singapore after operations were disrupted, a spokeswoman said on Friday.

"We can confirm that on (Wednesday), the Pulau Bukom manufacturing site experienced an operational upset at its ethylene cracker complex which has resulted in flaring," she said, adding that no one was injured and authorities had been notified. The force majeure was declared on Wednesday. The cracker produces over 900,000 tonnes of ethylene a year.

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He said that Qatar was in dire need of skilled manpower as Pakistan could earn huge foreign exchange through exporting skilled manpower to Qatar. Qatar also needs Pakistan’s help in education, health and engineering sectors. He stressed the need to develop a screening mechanism.

LCCI vice president said despite fact Pakistan and Qatar were members of Organisation of Islamic Co-

operation (OIC) and have close and cooperative relations but these prolonged ties did not reMlect in bilateral economic relations. Syed Mahmood Ghaznavi said that the Lahore Chamber was ready to play an effective role to promote trade and economic cooperation between the two countries. He said Pakistani construction companies if provided proper information could assist Qatar, as it was a potential market.

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Bangladesh Customs seizes smuggled Indian currency at border Saturday October 17, 2015

World

DHAKA: Customs officials seized 6,800,000 lakh Indian rupees from a warehouse at Shah Amanat International Airport in Chittagong yesterday. However, none was arrested in this connection.

Assistant Commissioner of Chittagong Customs House at the airport Abul Kashem told the Dhaka Tribune that during regular inspection customs officials found a carton which had no label around 1pm.

“Later customs official recovered a huge amount of Indian rupees that kept in four wooden plates inside the master box”, said AC Abul Kashem. The AC, however, could not confirm as it genuine or fake rupees.

AC Abul Kashems said “as the box has no label or tag, the customs officials could not found the details information about the carton or its owner who brought the bag”.

Australia border agents seize 71 tonnes of illicit tobacco cuStoMS BuLLetIN report www.customsbulletin.com

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Sri Lanka: 3 customs officials arrested for taking bribe of Rs 125m hree Customs officials were arrested while allegedly accepting a bribe of Rs. 125 million. According to Bribery Commission sources this is the largest ever recorded case of bribe taking, detected by them.

Meanwhile, the Director General of the Commission to Investigate Bribery or Corruption confirmed the arrest of the three officers. According to Customs Media Spokesman Lesley Gamini, a Deputy Customs Superintendent and an Assistant Superintendent were among the arrested. The Customs officers in question has informed a foreign company that a payment of Rs 1,500 million.—CB Report

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KUANTAN

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SYDNEY

ustralia’s border protection agency has made its largest ever seizure of illicit tobacco in a single operation.

Members of the Australian Border Force (ABF) intercepted 71 tonnes of tobacco in three shipments, Border Protection Minister Peter Dutton said.

Two containers from Indonesia were found in Sydney while the third was seized before it could leave Indonesia.

Mr Dutton said a new ABF “strike team” was being set up to target tobacco smugglers.

“This tobacco would have cost Australia over A$27m (£13m) in legitimate tax revenue if it had been successfully smuggled into the country and sold here,” Mr Dutton said in a statement.

The two containers found in Sydney held 47 tonnes of loose leaf tobacco and had come from Indonesia.

The third, with 24 tonnes, was seized by Indonesian authorities before it could be shipped out, the

Malaysian police nab couple with drugs

statement said.

Mr Dutton said a high degree of organisation had been behind the shipments. And he said the seizures – made under Operation Wardite – were the result of co-operation between the ABF and Indonesian Customs. “There are clear links to organised crime and we know that groups smuggling illicit tobacco into Australia are also involved in other illegal activities such as narcotics,” he said. “The ABF is determined to

disrupt their activities and the new ABF strike team will focus on the organised crime syndicates behind shipments like this and collect intelligence on their operations.”

Earlier this week, the ABF announced it had seized almost six million smuggled cigarettes in raids in Melbourne. It says it has also recently dismantled two major organised crime groups involved in tobacco smuggling, one in New South Wales and the other in Victoria.

citigroup’s profit surges by 51%

itigroup Inc (C.N) reported a 51 percent jump in quarterly proMit as lower costs more than made up for a fall in revenue amid increased market volatility and uncertainty about the timing of a U.S. interest rate hike. Legal and related costs of the No.3 U.S. bank by assets nosedived from a year earlier, with the lender

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putting most of the problems stemming from the Minancial crisis behind it. Operating expenses fell 18 percent as Chief Executive Michael Corbat works through his plan to exit businesses where proMits and prospects are not worthwhile. U.S. banks including Citi, JPMorgan Chase & Co (JPM.N) and Bank.—CB Report

olice arrested a couple, believed to be drug trafMickers, and recovered various drugs worth RM65,000 in Pandan Jaya on Tuesday. Pahang Narcotics Crime Investigation Department chief Superintendent Amran Ramli said today police picked the 26-year-old man about 1.40pm before he led police to his house where police detained his wife and seized 600 Yaba pills and 173g of syabu. He said initial investigations revealed the husband and wife team have been operating since early this year by supplying drugs in the state capital. Amran said police also seized four cars, three motorcycles, cash and jewellery worth some RM400,000 from the couple.

The duo, investigated under Section 39(B) of the Dangerous Drugs Act have been remanded till Oct 20.

Meanwhile, Life insurer AIA Bhd is looking to have an additional 4,500

to 5,000 agents, popularly known as life planners, by year-end.

“We are recruiting new life planners, and one thing we do focus on is bringing on more full-time life planners. We are looking at very speciMic recruitment to make sure we bring in people that will do well and build a career in insurance,” said “newlyminted” chief executive ofMicer Anusha Thavarajah.

AIA has a multi-channel distribution network, which is supported mainly by its current 14,000 life planners as well as its banking partners.

It has several new products lined up for the next 12 months, catering to consumers’ evolving needs and demands. “One big thing coming up is AIA Vitality, which we hope to launch by the middle of next year,” said Anusha. AIA Vitality is a health and insurance programme that partners with customers to help them live healthier lives. According to AIA Singapore, AIA Vitality is a science-backed wellness programme that works.

canada authorises import of colombian milk products

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fter Mive years of efforts from Colombia, Canada’s Food Inspection Agency has authorised the import of Colombian milk products. “We are very happy to announce that Colombia has been recognised by the CFIA to have a veterinary infrastructure equivalent to the one in Canada.

“A positive result of the veterinary infrastructure is that Colombia will be able to export milk and milk products to Canada, as each shipment is accompanied by an animal health certiMication complying

with the requirements of Canadian imports,” said the representative of ProColombia, the agency that promotes Colombian exports, Luis Humberto Martinez Lacouture. The next step is to agree the animal health safety and sanitary requirements to be met by each shipment of milk and milk products to Canada.

These include issues such as health programs for control and eradication of diseases, animal traceability, epidemiological surveillance, border control and diagnosis in primary production.—CB Report

Hackers drain more than $30m from uk bank accounts

M LONDON

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illions of pounds have been drained from British bank accounts after cyber criminals unleashed a “particularly virulent” virus, it was revealed today.

OfMicers from the National Crime Agency warned thousands of com-

puters have been infected by the Dridex malware which harvests online banking details.

“Cyber criminals often reach across international borders, but this operation demonstrates our determination to shut them down no matter where they are.” Robert Anderson, FBI The virus, also known as Bugat and Cridex, is believed to have been developed by a technically-

skilled gang in Eastern Europe to steal money from individuals and businesses around the world.

UK cyber crime experts are now working alongside the Federal Bureau of Investigations, Europol, GCHQ, Moldovan authorities and the BKA in Germany to track them down.

One “signiMicant” arrest has been made and more are expected.

NCA ofMicers said global Minancial

institutions and a variety of different payment systems have been particularly targeted, with UK losses estimated at $30.8 million. Some members of the public may also have unwittingly become victims of the Dridex malware. National Crime Agency is urging all internet users to ensure they have up to date operating systems and anti-virus software installed on their machines.

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Auckland port study to consider shift to new location MELBOURNE: A man is in a critical condition after a carjacking at Port Melbourne on Wednesday night. Victoria Police Senior Constable Adam West said a man noticed another trying to steal his Volkswagen sedan from a parking bay on Bay Street about 8.30pm. “The victim, believed to be in his 30s, went to his car and tried to enter through the back door in an attempt to stop the offender,” Senior Constable West said.

“The offender drove the car off and the victim was wedged between a pole and the back door.

“He fell from the vehicle and the offender drove the car around a corner before dumping it and fleeing.”

port of Singapore incentivises building of LNg-fuelled vessels he Maritime and Port Authority of Singapore (MPA) has taken another step toward the eventual launch of the LNG Bunkering Pilot Programme (LBPP) targeted for early 2017. It has invited applications from interested companies to tap into a SGD 12 million (USD 8.4m) fund, from the MPA’s “Maritime Innovation & Technology Fund” (MINT Fund¹), for the building of LNG-fuelled vessels. The MPA will provide funding of up to SGD 2 million (USD 1.4m) per vessel, capped at two successful funding applications per company. Companies must be incorporated in Singapore, and the funded vessels must be flagged under the Singapore Registry or licensed for activity in Port of Singapore for a period of at least five (5) years.—CB Report

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Port Hawkesbury Paper ruling could see mill paying millions in duty ater today the United States Commerce Department will release a significant decision on whether exports from the Port Hawkesbury Paper mill will have to pay duty of 20 per cent. The investigation flows from an unfair competition complaint brought under the North American Free Trade Agreement (NAFTA) by a few American mills.

It sets the way to levy duties on supercalendered paper, glossy paper used for magazines and catalogues. Port Hawkesbury Paper has been setting aside money to pay duty which could cost up to $50 million a year. A preliminary ruling this July said the mill received subsidies in the form of discounted power rates and a $124-million provincial aid package when it changed hands three years ago.

Both the mill and the province have challenged the ruling, arguing power rates — which account for 70 per cent of the duty — are not a government subsidy. Port Hawkesbury Paper says the commerce department miscalculated its electricity costs.—CB Report

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Ports & Shipping

port of Los Angeles shipment falls in September

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ber while exports were up 6.1% from the same month last year.

For January through August, the major ports of New York and New Jersey, Savannah, Ga. and Seattle and Tacoma, Wash., reported doubledigit gains in loaded import containers. Imports at the Port of Oakland were Mlat for the Mirst nine months of 2015 through September while Long Beach has reported an increase of 2.1% in imports over the

same period last year.

The East Coast ports have reaped the beneMits of congestion on the West Coast earlier this year related to protracted contract negotiations with the dockworkers’ union there.

The talks wrapped up in late February, but the West Coast has been slow to fully recover their cargo volumes as many shippers shifted their goods to different routes after months of uncertainty at the PaciMic ports.

Indonesia’s shipping strategy includes 22 new ports s part of President Joko Widodo’s ongoing plan to establish Indonesia as a global shipping hub, state-owned port operator Indonesia Port Corporations (IPC) has announced that it will build 22 ports in the next Mive years. According to ofMicials, IPC is investing more than $3.5 billion in the project,

which it is Minancing through a combination of internal cash Mlow and loans. In May, IPC raised $1.6 billion, and the company also secured a $2.5 billion loan from several foreign banks. The company expects to raise another $1 billion before 2017 and to begin construction on the Mirst eight ports, which will each have a capacity

of 2.5 million TEUs, before the end of the year. The eight ports are expected to be operational by 2018. On September 1, the Port of Rotterdam Authority signed a partnership agreement with IPC to begin development of the deepsea port Kuala Tanjung, which will be near the city of Medan on the Strait of Malacca.—CB Report

HkSr passes 100m gt mark

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HONG KONG

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he Hong Kong Shipping Register (HKSR) has announced it has crossed the 100m gross tonnage (gt) mark at the end of September with a total of 2,449 ships listed, ranking it as the fourth largest ship register in the world.

In a statement released by Hong

royal caribbean pushing for port change in Australia ccording to a report from Louise Goldsbury of CruiseCritic.com, Royal Caribbean has been in negotiations for more than three years to lay the groundwork for a cruise passenger terminal that would be built at Botany Bay, and the company has shown indications of more internal optimism. Thank to a decrease in cargo ship traffic at Botany Bay, Royal Caribbean regional vice president Gavin Smith was thinking positive when he told Goldsbury, “The trade through Botany is not as bullish as in the past so I think we are closer to getting a result than ever before. I would say Botany is doable within a three to four year timeframe.” Despite potential issues with airport clearance at Botany Bay for the taller vessels in the Royal Caribbean fleet, the company is pushing for this relocation project due to the lack of space and berths for its ships at Sydney Harbor.

Moving locations would inhibit some of the views of iconic landmarks found in the harbor like the Opera House and Harbor Bridge but Royal Caribbean would still book the ships to make their way past the landmarks before venturing into open sea. Meanwhile, A four-year legal battle will finally reach fruition next week when dredging vessels start to widen and deepen the shipping channel leading to the Port of Tauranga. The project will allow ships carrying 6500 containers to enter the port.—CB Report

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hipments through the Port of Los Angeles fell at a steep rate last month, extending a downward trend over the past year that suggests the port is bearing the brunt of sluggish U.S. international trade. In September, Los Angeles handled 124,286 loaded twentyfoot equivalent units, a standard measure for container cargo. That was off 17.5% from last September, the 12th straight month that loaded export containers declined from a year ago. Imports declined 9.4% year-over-year, to 372,991 inbound containers.

Shipping at many of the largest U.S. ports has been tepid in recent months. Foundering demand for U.S. goods in the troubled European and Asian economies has clipped exports and overstocking earlier this year by American retailers has led many of them restrain imports heading into the fall.

But most ports aren’t reporting the deep declines that Los Angeles is coping with.

At the neighboring Port of Long Beach, imports fell 1.9% in Septem-

Saturday October 17, 2015

Kong’s Marine Department, it was pointed out that Port State Control detention rate of Hong Kong-registered ships remains at a low level as a result of quality control.

“Ships registered in Hong Kong remain among the top performers in the white list issued by the Tokyo Memorandum of Understanding of Port State Control, and are classiMied as low-risk ships in the Paris MoU,” the Marine Department said.

“In addition, Hong Kong continues to hold the Qualship 21 status of the US Coast Guard,” it stated.

In order to ensure the high standards of Hong Kong-registered ships, the HKSR will continue to enhance its services and provide shipowners with technical support and advice.

In order to ensure the high standards of Hong Kong-registered ships, the HKSR will continue to en-

hance its services and provide shipowners with technical support and advice. The Marine Department will continue to improve its coordination with relevant mainland Chinese authorities to provide better protection for Hong Kong-registered ships when they are in international waters and in foreign ports.

The HKSR was established on 3 December 1990 with 6m gt at the time.

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Sale of illegal cigarettes reaches 43pc KARACHI: The sale of smuggled cigarettes has been reached 43 percent for the last six years, according to the Federal Board of Revenue (FBR) data.According to additional commissioner Regional Tax Office-III (RTO_III), the sale of illegal cigarettes witnesses a downward trend and it will comedown further with the passage of time.

As per details, due to the illegal sale of cigarettes, the government is bearing a loss of Rs 24 billion. More than 23 percent cigarettes are being sold in the country illegally, the data showed.

Saturday, October 17, 2015

CUSTOMS BULLETIN

cLBc playing vital role in resolving bilateral trade issues electronic data interchange system is in the offing to speed up consignments’ clearance LAHORE M HAYAt

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rade is a dynamic thing which passes through a number of changes with the passage of time bringing along with it tribulations and the Customs Liaison Border Committee (CLBC) after every two and a half month is playing a very vital role in resolving the bilateral trade issues, improving conditions of trade facilitation in the result of it.

This was the crux of the discussion of the 20th CLBC meeting between Pakistan and India held here at the Customs House.

Chief collector of Customs Rozi Khan Burki, Collector of Customs Lahore Preventive Mukarram Jah Ansari, additional collector Jamil Nasir, deputy collector of Customs Iram Sohail and DC Nazima Salim from Pakistan Customs while commissioner Captian Sanjay Gahlot, additional commissioner Nitin Saini, deputy commissioner Paramavtar Singh Gill, assistant commissioner Jasmeet Singh and assis-

tant director Jasveer Khichar attended the CLBC meeting from Indian side of the Customs.

“As soon as summer season begins the trade volume between the

two neighboring countries gains momentum and customs authorities of both side come across a number of minor issues that cause major delays in clearance of consign-

ments,” Collector of Customs Preventive Mukarram Jah Ansari told Customs Today.

The CLBC meeting provides the customs authorities of the both

sides an opportunity to streamline things ahead of the high season besides train, bus and on-foot trafMic issues are also discussed to speed up customs clearance, he added.

Pakistan bears loss of Rs 92b due to under-invoicing of imports from China ISLAMABAD

SANAuLLAH kHAN

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akistan economy has facing a huge losses due to under invoicing of imports from China and in Mirst Minancial year of present regime national exchequer has face a loss of Rs 92 billion due to under invoicing of imports from china.

This was disclosed in Auditor General of Pakistan report which

was submitted to Minance ministry for presenting in the National Assembly. Auditor Genral of Pakistan observed that in case of violation, maximum penalty should be imposed to curb the under invoicing.

AGP said in his report that, Under invoicing means the provision of an invoice that states price as less than is actually paid. This might be done on an import in order to reduce the amount that will be collected by an ad valorem tariff. Pakistan and China entered into a treaty on 24.11.2006 under which Pakistan allowed exemption and concession on import of 5909

items being produced and manufactured in China. A comparison of United Nations Statistics Division’s Migures of imports by Pakistan from China and corresponding Migures of exports from China revealed that the goods imported from china were consistently under invoiced by the importers to gain illegal Minancial beneMits. Resultantly, the national exchequer had to sustain revenue loss of Rs 92016 million approximately in three years.

AGP observed that, the issue was raised in Oct, 2013 and discussed in a meeting on 20th Nov,

2013 at FBR Islamabad. The department replied that the difference between the imports reported by Pakistan and exports reported by China could not be as much as observed by Audit as other countries like India, USA and China also had variation in their mutual import and export Migures.

Further, there was also a difference of viewpoint regarding recording of imports and exports. Anyhow, FBR was cognizant of the need for assessing the goods at fair value.

The initiatives like developing of valuation gateway, developing valuation data base of imports from

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various countries and regions, issuance of valuation rulings to curb both individual and group under invoicing had been taken.

Report further said that, FBR directed the Director-General, Valuation to ensure that imports from china are brought under focus and rulings may be issued to check under invoicing. Audit requested FBR to provide a copy of instructions issued to Directorate of valuation Karachi. Audit is of the view that the issue has roots in violation of law by the importers and lenient treatment of violations by the customs authorities.