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pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 192

Karachi, Sat October 3, 2015

ISLAMABAD

M FAIZAN

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uring the month of September, 2015, according to the provisional Pigures received so far, FBR has made a net collection of more than Rs. 268 billion, as against net collection of Rs. 228 billion made last year showing an increase of 17.5 percent. It is expected that the Pinal

Price Rs. 14.00

collection would further increase when the Pinal Pigures are received.

From July, 2015 to September, 2015, FBR made a net collection of more than Rs. 600 billion as against net collection of Rs. 541 billion made last year resulting an increase of 11 percent. This is after having issued refunds of Rs.30 billion as against Rs. 21 billion issued during Pirst quarter of last year resulting an increase of refunds at 42.85 percent as compared to last year.

Customs Multan holds auction of contraband items

PCA detects Rs 388.786m taxes/duties evasion by SNGPL

PM Nawaz hails Dar on achievement of US $20b forex reserves

Court seeks complete challan of smuggling case

ICCI urges FBR to address concerns of traders over WHT

The Customs Intelligence Multan held auction of contraband cars | See pAge 02 |

Pakistan Customs Directorate of Post Clearance Audit-Karachi detected | See pAge 03 |

Pakistan’s foreign exchange reserves have crossed US$ 20 billion | See pAge 04 |

The Special Court of CustomsTaxation and Anti-Smuggling directed the Pakistan | See pAge 12 |

The traders community was feeling disturbed from the levy of 0.6 percent | See pAge 09 |

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Customs Court accepts bail plea of Tahir Aslam Saturday, October 3, 2015

National

LAHORE: In the Special Court of Customs Taxation and Anti-Smuggling, different cases were scheduled for hearing on Thursday.

The Special Court of Customs Taxation and Anti-Smuggling heard 28 important cases and adjourned many cases until news date including bail plea of Meer Gull who is in jail on judicial remand in a case of smuggling.

Pre-arrest bail pleas of Abdul Khaliq, Muhammad Ashiq, Ihsan Elahi, Malik Siraj Din, Muhammad Afzal, Yar Muhammad, Ahmad Nawaz, Nabi Bukhash, Muzammal Hussain and Shahid yaqub were also scheduled for Thursday.

Multan customs holds auction of contraband items

KARACHI

wAQAr AhMeD ANSArI www.customsbulletin.com

MULTAN

IMrAN ALI

irectorate General of Broadening of Tax Base (BTB) has freezes 112 bank accounts of tax defaulters for collection of Rs 3 billion. As per details, FBR collected the details of these tax defaulters from their bank transitions and found that these people were not included in tax net.

According to the sources Directorate has issued over hundred thousand notices to the tax defaulters and around sixteen thousand have submitted their tax returns worth Rs 60 million. It is pertinent to mention here, that from July 2014 to July 2015 FBR authorities freezes bank accounts of 278 tax defaulters while arrest warrants were issued to 198 defaulters. Meanwhile, Pakistan International Airlines (PIA) has not submitted income tax returns to Federal Board of Revenue (FBR).

According to the sources, FBR directed to PIA to clear outstanding tax amount till September 30 but PIA failed to submit the income tax. The sources further told that FBR will issue warrants to Chief Financial Officer (CFO) and other officials of PIA for non submission of income tax.

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he Customs Intelligence and Investigation Multan held auction of contraband cars and other miscellaneous items worth Rs 5 million which were conPiscated during the month of September.

As per details provided by the ofPice, four seized vehicles- Hilux Surf, Vigo, Seirra jeep and Fielder were auctioned at Rs 4 million whereas two lots of miscellaneous items including tyres, tubes and 745 kilograms if tar-coal offered for auction at Rs 1 million in the presence of dozen of bidders on the premises of the Customs Intelligence ofPice.

It is learnt that various conPiscated vehicles and items of worth Rs 6 million put up for sale but one of the bidders slipped away at the time of the submission of money.

The Additional Director of the Customs Intelligence and Investigation Multan, Nisar Ahmad, supervised the auction along with Malik Nasir (senior intelligence ofPicer) and Iqbal Shah (cashier) were also present. The Customs auctioner Chaudhary Akram conducted the auction.

Meanwhile, The Customs Investigation and Intelligence Multan has conPiscated smuggled tyres, alloy rims and zinc ingots along with a

FBr freezes 112 bank accounts of tax defaulters

truck in an operation.

As per details, the Customs Intelligence and Investigation Multan, following credible information, intercepted a truck in its jurisdiction.

The team recovered smuggled tyres, alloy rims and zinc ingots and asked the driver to produce the doc-

uments regarding the import of the said items but he remained failed.

Therefore, Customs Intelligence seized the items along with truck.

The estimated value of the conPiscated items is worth Rs 9.7 million.

The Customs Intelligence team was comprised of Superintendent

Fareed-ud-Din Masood, Senior Intelligence OPicer Amjad Pervaiz, Intelligence OfPicer Mohammad Umer, Shaikh Arshad and HaPiz Younis.

The smuggled items and truck have been taken into custody under the Sections 2(s) and 16 of the Customs Act, 1969.

Faisalabad Customs Intelligence impounds smuggled truck worth Rs 3m FAISALABAD

NAeeM SheIkh

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he Customs Investigation and Intelligence Faisalabad has impounded a non-duty paid Mazda Mini truck worth Rs 3 million involving duty/taxes amounting to Rs 1.86 million near Jhang road.

Sources told Customs Today that the Customs intelligence team, acting upon credible information received through Additional Director Azmat Tahira, intercepted a truck bearing Registration No. SBA-052.

The team asked the driver namely Muhammad Akmal to produce the documents showing the legal import of the truck but he remained failed; therefore, the customs intelligence impounded the vehicle under the prevailing cus-

toms law.

The intelligence team comprising Senior Intelligence officer Muhammad Tahir Iqbal, Muhammad Saleem, Mansoor Nasir, Intelligence officer Farzand, and others participated in the raid.

Meanwhile, Additional Collector of Customs Adjudication Faisalabad, Amjad ur Rehman has declared confiscation of diesel generator and a vehicle lawful.

As per details, the Customs AntiSmuggling Organisation (ASO) Sar-

godha intercepted a truck bearing Registration No. KSS-1912 in its jurisdiction and recovered six units of diesel generator.

The ASO team asked the driver named Muhammad Riaz to show the document regarding the legal import of the items but he remained failed.

Therefore, the officials confiscated the generators; besides impound the mini truck being used for the transportation of the smuggled items.

Later, the case was forwarded to adjudication for legal proceeding against the accused persons, where the owner of generators M/s Madina Generator could not present any documents on which court ordered to confiscate the generators.

On the other hand, the owner of the truck pleaded the court for releasing the truck, therefore, court ordered to release the truck imposing Rs 80,000 fine on the vehicle owner.

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Prime Minister Nawaz Sharif pays Rs 4.24 million taxes Lahore: Prime Minister Nawaz Sharif has paid taxes worth Rs 4.24 million, including income and agriculture taxes. The tax return of the prime minister has been submitted, according to a statement issued by PM House. According to the returns, the prime minister paid income tax worth Rs 2.28 million and Rs 1.96 million agriculture tax.

Earlier, the PM was severely criticised as it was a once said that the PM paid only Rs 5,000 as tax despite the fact that he owns property worth billions of rupees in the country and abroad. However, during an interview, he clarified that the accusation was baseless and that he had paid billion of rupees as taxes.

two FBr employees allowed promotion LAHORE

Saturday October 3, 2015

National

pcA detects evasion of rs 388.786m taxes/duties by SNgpL

M hAYAt

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KARACHI

AFtAB chANNA he Federal Services Tribunal (FST) on Thursday allowed proforma promotion of two employees of the Federal Board of Revenue (FBR) with effect from 2007. Mian Jaffer Hussain, the counsel of petitioners — Rana Asghar and Muhammad Pervaiz who are LDCs in the Regional Tax Office, Gujranwala, said that his clients were recommended by the departmental promotion committee for promotion in 2007. But the department promoted them in 2011 which was against the rules . The FST bench comprising Kazi Afaq Hussain and Nasir Ali Shah, after hearing detailed arguments advanced by either sides, allowed the promotion from the date.

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Faisalabad ASo seizes smuggled art silk cloth FAISALABAD

NAeeM SheIkh

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he Anti-Smuggling Organization ( ASO) Faisalabad seized 610 kilograms of smuggled cloth in Faisalabad. The market value of impounded cloth is Rs 850,000.

Sources told Customs Today that the ASO received secret information through Model Customs Collectorate Dr Zulfiqar Ali Choudhary that foreign origin art silk cloth would be smuggled in Faisalabad. After receiving information, Collector Dr. Zulfiqar Ali Chaudhary constituted a raiding team comprising Zahid Bukhari (superintendent), Muhammad Akram, Muhammad Munir Ahmad, Muhammad Ramzan (inspector), Afzal Hussain, Muhammad Abdullah, Asrar Ahmed, Liaqat Ali ( sepoys ), The ASO team raided near Chenab Chowk, Jhang Road Faisalabad and found smuggled silk cloth of 6000 yards.

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akistan Customs Directorate of Post Clearance Audit-Karachi detected massive evasion of taxes/duties to the tune of Rs 388.786 million by M/s Sui Northern Gas Pipelines Limited on import of domestic gas meters by availing inadmissible exemption/concessions under Clause (2) and Clause (3) of SRO 678(I)/2004 dated 07.08.2004.

According to details, the PCAKarachi Directorate, during scrutiny of import data of Sui Northern Gas Pipelines Limited, Gas House 21-Kashmir Road, Lahore, observed that they imported various consignments of domestic gas meters and got them cleared from MCC Appraisement (West), MCC Appraisement (East) and MCC (PMBQ) Karachi, through their Clearing Agents namely M/S. Muhammad Amin Muhammad Moqeem, Clearing and Forwarding Agents, and M/S Urooj.

The importer availed inadmissible exemption/concession under Clause (2) and Clause (3) of S.R.O. 678(I)/2004 dated 07.08.2004.

Whereas conditions with reference to aforesaid clauses of the S.R.O clearly stipulate that only such goods shall be entitled to the exemption by a company other than an E&P company, for its own use or

its contractors, sub-contractors and service companies for its projects of oil and gas exploration and production, rePinery, oil and gas pipeline, liquePied petroleum gas (LPG), compressed natural gas (CNG), LiquePied Natural Gas (LNG) petroleum terminals, energy conservation, environment and safety controls. Further, without prejudice to above, the imported goods also fall within the ambit of C.G.O No. 11/2007 dated 28.08.2007, being locally manufactured.

In view of above, Sui Northern Gas Pipelines Limited by availing inadmissible exemption/concession under S.R.O. 678(I)/2004 dated 07.08.2004, have evaded/short paid custom duty Rs 306,505,803/-, sales

tax Rs 52,163,342/-, additional sales tax Rs 9,195,174/- and income tax Rs 20,922,277/- totaling Rs 388,786,596/-.

Meanwhile, The Model Customs Collectorate MCC Appraisement West collected at least Rs 23.961 bil-

pcA during scrutiny of import data finds that SNgpL imported various consignments of domestic gas meters availing inadmissible exemption under clause (2) and clause (3) of Sro 678(I)/2004

FBR to conduct forensic audit of telecom companies

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he Federal Board of Revenue (FBR) has decided to conduct forensic audit of telecom companies under the World Bank project.

According to the sources, the FBR and the World Bank mission have agreed upon the risk Parameter Development for the forensic audit of telecom companies in Pakistan.

Meanwhile, the dialogues be-

tween the World Bank mission and the FBR officials will start today to review the Tax Administration Reforms Project as WB delegation has arrived in Pakistan.

Sources added that the FBR has also introduced a new audit policy proposed by WB mission and selected 75,000 taxpayers for audit, while dozens of politicians, including Punjab chief minister, MQM leader Farooq Sattar and PTI leader Aarif Alvi were also selected for the audit. Sources also added that FBR

will also present audit drafts of information technology diagnostic, Inland Revenue Services and others. Meanwhile, Federal Board of Revenue on Wednesday extended the deadline for filing income tax returns till October 31.

The last date to submit income tax returns was September 30 (today). The decision to extend deadline was taken during a meeting of Economic Coordination Committee presided over by Federal Finance Minister Ishaq Dar.

lion taxes/duties under various heads in the month of September 2015. According to statistics available with the Customs Today, the MCC Appraisement West collected Rs 8012 million under the head of customs duty, while Rs 12,334 million under the head of sales tax, Rs 3,376 million as income tax and Rs 239 million under head of federal excise duty during the month of September 2015. SigniPicantly, the MCC Appraisement West collected Rs 6,844 million on the last working day of September 2015 i.e. September 30 that include Rs 982 million under the head of customs duty; Rs 5,391 million under head of sales tax; Rs 452 million as income tax and Rs 20 million.

Ltu collects near rs100 billion revenue in Q1 ear Rs100 billion were collected by the Large Taxpayers Unit (LTU), Karachi during the first quarter of fiscal year 2015-16, which is six per cent more than the FBR target.

As per the official figures released by LTU, the net revenue collection stood at Rs95 billion after deducting Rs3 billion refunds.

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Real estate sector shows signs of improvement Saturday, October 3, 2015

Business

LAHORE: Pakistan’s real estate sector made a strong comeback after the Eid break, according to property portal, Lamudi.pk (http://www.lamudi.pk/). This is due to the influx of overseas Pakistanis who were back in the country to celebrate Eid with loved ones.

Eid was perfectly timed with the improved security situation in the country. With the successful Karachi operation underway, eliminating the Qabza mafias, the developer projects have already increased manifold.

With the overseas Pakistanis back in the homeland around this time.

pM urged to allocate amount for more hydel power projects LAHORE

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he employees of Water and Power Development Authority (Wapda) have urged Prime Minister Nawaz Sharif to allocate funds for the construction of new hydel power stations.

The demand was raised in a meeting held at Bakhtiar Labour Hall under the aegis of All Pakistan Wapda Hydro Electric Workers Union, which was addressed by General Secretary

11 development projects worth rs 102b approved

Khurshid Ahmed. The meeting was also addressed by Sajid Kazmi, Muzaffar Mateen, Haji Muhammad Younus, Ch Maqsood Ahmed, Rana Abdul Shakoor, Osama Tariq and other trade union representatives.

The workers’ leaders pointed out that new thermal power stations are required to provide cheaper electricity to the national industries, agriculture, commerce and domestic electricity consumers since Tarbela, Mangla, Ghazi Brotha have been providing electricity at Rs2.5 per unit in comparison with the high cost of the private power station at Rs20 to 30 per unit. They also welcomed the recommendations of the National As-

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he federal government has approved eleven development projects worth Rs102 billion. The projects were approved during the Central Development Working Party (CDWP) meeting, held at the Planning Commission under the chairmanship of Federal Minister Planning, Development and Reform Ahsan Iqbal.

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try. With the successful Karachi operation underway, eliminating the Qabza maPias, the developer projects have already increased manifold.

With the overseas Pakistanis back in the homeland around this time, a lot of investment was channeled into these projects. This was especially true for posh areas, such as Defence Housing Authority (DHA) and Bahria Town across Pakistan’s largest cities, Lahore, Islamabad and Karachi. Saad Arshed, Country Director for Lamudi.pk, commented, “It is heartening to see the surge in property prices and the rising interest from both local and foreign investors in the real estate sector.”

ppDwp okays 9 projects worth rs 11 billion

ISLAMABAD

cuStoMS BuLLetIN report

sembly Committee of Water & Power asking the government not to privatise national proPitable electricity public utility on the behest of IMF, but raise their productivity.

The workers also demanded to the Government to enlarge and improve training facilities to the Pield staff. Meanwhile, Pakistan’s real estate sector made a strong comeback after the Eid break, according to property portal, Lamudi.pk (http://www.lamudi.pk/). This is due to the inPlux of overseas Pakistanis who were back in the country to celebrate Eid with loved ones. Eid was perfectly timed with the improved security situation in the coun-

LAHORE

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he Punjab government has approved nine development projects worth Rs10831.291 million (Rs10.831 billion).

The projects were approved during the Punjab Provincial Development Working Party’s (PPDWP) 11th meeting of current Piscal year 2015-16, presided over by Punjab

P&D Board Chairman Muhammad Irfan Elahi. Members of the Planning & Development Board, Provincial Secretaries concerned and other senior representatives of the relevant Provincial Departments also attended the meeting. According to Spokesman for P&DD, the approved development schemes included: provision of laptops (2015-16) at the cost of Rs5455.638 million, Construction of Concrete Silos of 100,000 metric tons capacity at Dera Ghazi Khan, Rajanpur, Kot Chuta (30,000 metric tons capacity at mana ahmadani

at the cost of Rs345.068 million, feasibility for the establishment of “National Safari Park” in salt range (PC-II) at the cost of Rs9.200 million, comprehensive water supply and sewerage scheme Mianwali (Revised) at the cost of Rs499.104 million, establishment of Directorate General of Monitoring and Evaluation (Health) at the cost of Rs749.519 million, construction of Sheikh Zayed Medical Complex (Phase-II/A), Rahim Yar Khan (Revised) at the cost of Rs1477.404 million, improvement / rehabilitation of Rawalpindi Murree Kashmir road km.

Meezan Bank wins Shariah Authenticity Award KARACHI

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eezan Bank has again won Shariah Authenticity Award at the 5th Global Islamic Finance Awards ceremony held at Gulf Convention Centre, Manama, Bahrain. This is the second time that Meezan Bank has been recognised at this esteemed platform, in 2013, Meezan Bank had received ‘Best Research and Development in Islamic Finance’ award.

The GIFA awards are among the most prestigious global awards in the field of Islamic Banking and Meezan Bank’s nomination for their Shariah Authenticity Award is testimony to the fact that Meezan Bank stands among the topmost Shariahcompliant financial institutions in the world. On receiving the award, Meezan Bank’s founding President & CEO Irfan Siddiqui said, “Meezan Bank has a very strong product development team, comprising of Shariah scholars, business graduates and product experts.”Dr Muhammad Imran Usmani Member of Meezan Bank’s Shariah Supervisory Board, said that “a strong focus on Shariahcompliance is the key contributor in Meezan Bank’s success and in its international recognition as a truly Shariah-compliant bank.”

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PM Nawaz hails Dar on achievement of $20b forex reserves ISLAMABAD

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akistan’s foreign exchange reserves have crossed US$ 20 billion on Thursday which is a new all time record for the country. These include US $ 15.24 billion that are with the State

Bank of Pakistan and US$ 4.83 billion held by the commercial banks.

Prime Minister Mohammad Nawaz Sharif has congratulated the Finance Minister, Senator Mohammad Ishaq Dar on this historic achievement.

The Finance Minister in a statement said that the level of forex reserves is a manifestation of the stability in the national economy that has been achieved due to the deeprooted and comprehensive eco-

nomic policies and reforms undertaken by the present government during the last two years under the leadership of Prime Minister, Mohammad Nawaz Sharif.

He said all the international donor agencies as well as rating agencies now hold Pakistan’s economy positively. He added we are now working for sustainable and inclusive growth, consolidation of the economic gains and employment generation.

Meanwhile, The Central Directorate of National Savings collected Rs70 billion during the Pirst quarter of the ongoing Pinancial year as the total target of Rs302 billion has been set for FY 2015-16.

According to the CDNS, the federal government has also made adjustments in the proPit rates on new saving schemes to be made on or after October 01, 2015. He said the instant revision was made in the backdrop of current market sce-

nario and in accordance with the government’s policy to provide market based competitive rate of return to the investors of National Savings.

As per notiPication issued by the federal government, the new rates for Special Savings CertiPicates, Regular Income CertiPicates, Defence Savings CertiPicates and Savings Accounts have been Pixed at average 7 percent, 7.8 percent, 8.87 percent and 4.25 percent respectively.

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he Special Federal Court of Customs Taxation and Anti Smuggling granted a three-day physical remand of a suspect in currency smuggling case on Thursday.

Suspect Shahbaz Ahmad was produced before the court by investigation ofPicer of Customs Muhammad Usman and they asked for physical remand of the accused as more investigation is required regarding his act of smuggling of large amount of foreign currency which is a crime.

After hearing arguments from the Customs lawyer, the court granted three-day physical remand and handed him over to the Customs investigation team. It is pertinent to men-

tion here that Shahbaz Ahmad was arrested on Wednesday when Customs Preventive at Lahore airport foiled a bid to smuggle Rs 5.2 million foreign currency from Lahore to Muscat.

The accused was set for travelling from Air Blue flight No. PA 450 however, he was arrested by the customs authorities before boarding. The accused tactfully fixed the Omani riyals with his body which was removed by the Vustoms authorities in the presence of Customs ADC Sumer Ahmad Tarar while inspector Nadeem Iqbal and others were also present on the occasion.

Now Accused shahbaz is on physical remand for three days and he will be produce again before the customs court on Monday.

Meanwhile, In the Special

Court of Customs Taxation and Anti-Smuggling, different cases were scheduled for hearing on Thursday.

The Special Court of Customs Taxation and Anti-Smuggling heard 28 important cases and adjourned many cases until news date including bail plea of Meer Gull who is in jail on judicial remand in a case of smuggling.

Pre-arrest bail pleas of Abdul Khaliq, Muhammad Ashiq, Ihsan Elahi, Malik Siraj Din, Muhammad Afzal, Yar Muhammad, Ahmad Nawaz, Nabi Bukhash, Muzammal Hussain and Shahid yaqub were also scheduled for Thursday but the court adjourned all the pleas due to some objections. While plea of Tahir Alsam was accepted and he deposited cash guarantee against his bail in a case of smuggling of foreign clothes.

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Saturday, October 3, 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

Need to enhance regional trade

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he global value chain is a new concept, covering all aspects of business and trade, and is specifically beneficial for developing economies. The importance of the regional value chain is at par with the global value chain and developing economies in various regions are working in coordination and cooperation with one another to achieve common goals. In a study by Commonwealth Secretariat in 2011, the South Asian countries were advised to develop a supply chain in textile sector to decrease cost of production and increase exports. However, the study also pointed out various hurdles in the development of the supply chain in the SAARC countries. Pakistan, Bangladesh, Sri Lanka and India are all developing nations and need a close cooperation with one another for their own benefits, but bitter colonial legacies have polluted the political environment to the extent that cultural similarities have lost their values.

Instead of becoming part of a production cycle, the countries are undergoing the process of polarization.

If South Asian countries put aside their difference and take a united stand on trade, industry and business, no one can stop development in this region. The need for cooperation between regional countries is increasing day by day due to the use of modern technology in the production of value added goods. The process of production is also becoming complex and parts of the products are sourced out to lower the manufacturing cost. In Pakistan, the global value chain is still a distant dream and despite all promising economic indicators, the country is facing declining trends in exports. The Pakistan, China Economic Corridor is the best option to enhance regional and international trade. The SAARC countries should also launch regional economic corridors to discourage political differences and encourage collaboration in the field of business and trade. The first thing to do is to narrow trust deficit, particularly between Pakistan and India and enhance cooperation. SAARC was an important forum to discuss political differences, but it has become hostage to the relations of two giant nations. The trust deficit is the main reason of slow trade activities because it is a bottleneck in the way of free trade. There is a need to enhance business to business contacts between the regional countries and improve connectivity through soft borders. India has recently stopped cross border trade with its small neighbor Nepal, increasing the problems of that landlocked country.

Pakistan 10th least innovative country in world A

LAHORE

Dr AFtAB AFZAL

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ccording to a report issued by the Global Innovation Index (GII), Pakistan stands at 134 among 143 economies which mean it is the 10th least innovative country in the world.

The index covers 143 countries and uses a range of themes as well as indicators to scrutinise the entire setup of an economy.

Out of 100 indicators, the average score of Pakistan is 24. In the sub-index of innovation output, the country ranks 107 out of 143 with a score of 22.6 out of 100 in 2014.

However, Pakistan has improved its previous year’s rank-

ing when it was placed at 137 with an overall score of 23.3 percent. China is at 29 and India at 79 in the index. A survey also reveals that Pakistan has a score of 25.4 in 139 countries placed on the innovation input index, regrettably with low innovative efficiency ratio of 0.9 percent.

The scrutiny covers two basic areas of economy — innovation input and innovation output. Innovation input covers the domains of the quality of institutions, human capital, research, infrastructure, market sophistication and business ethics whereas the output covers technological and creative outputs.

The score of Pakistan is 40.1 among the indicators that determine the strength of its institu-

tions. There are various indicators to ascertain the strength of institutions in the background of political, regulatory and business environment.

The score of the country on political environment is 22.8, placing it at 141 and in political stability; it ranks 143 with zero score. In utilization of the human capital and research, the country has been placed at 139 with a score of only 9.8 out of 100. The country spends only 0.3 percent of the GDP on research and development.

The report says that skill development is one of the most important factors to raise intellectual capabilities of human capital and it gives impetus to innovation, productivity and economic

growth. The conventional education system only focuses on testbased academic performance and it least inspires young people in the fields of development, creativity and communication. On the side of basic infrastructure, that country is ranked at 124 with a score of 22.2. In information technology and communications, it scored 19.8 points.

As a matter of fact, education system is the basic requirement for development, but this sector is dominated by the colonial legacy — less technological but more clerical. There is no dearth of talent and capacity in the human capital, but we are bent upon destroying every faculty of young generation by various means.

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Dubai Chamber to play pivotal role in Dubai, Africa business ties DUBAI: Dubai Chamber has been building bridges between business communities in Dubai and Africa and exploring business synergies between Dubai and East African markets.

The Dubai Chamber of Commerce and Industry’s representative office in Ethiopia organised an East Africa and Dubai agribusiness roundtable meeting to discuss trade, investment opportunities and business synergies.

LccI urges govt to solve the issue of wht amicably LAHORE

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he Lahore Chamber of Commerce and Industry Thursday urged the government to take business community on board and solve the issue of withholding tax on bank transactions amicably.

In a statement issued here, the LCCI President Sheikh Muhammad Arshad and Vice President Nasir Saeed said that solution of this issue would not only help create business friendly atmosphere but would also build trust between government and business community.

They said that the economy is well on the track and cannot afford any confrontation between the government and business community which is backbone of the economy.”

They said that though expansion of tax net is need of the hour but government would have to find out new ways to bring the untaxed sectors into the tax net. He said that measures like imposition of withholding tax on bank transactions would not be doing any service to the economy as it has been observed that tax collection machinery has no authentic data to specify difference between filers and non-filers. LCCI office-bearers said that though formation of a committee and cut in withholding tax is a step in right direction but business community is yet not satisfied and want complete withdrawal of withholding tax. They said that the Lahore Chamber of Commerce and Industry is with all the trade and industry associations against this imposition of tax on bank transactions. They said that if tax on all bank transactions is imposed forcefully, it would not only hamper the trade and economic activities but would also tarnish the image of the government.

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Saturday October 3, 2015

Chambers

IccI urges FBr to address concerns of traders over wht ISLAMABAD

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he traders community was feeling disturbed from the levy of 0.6 percent withholding tax on banking transactions of non-Pilers exceeding amount of Rs 50000/- and Federal Board of Revenue should take urgent measures to address the concerns of business community on this important issue, observed Atif Ikram Sheikh after taking over charge as President, Islamabad Chamber of Commerce and Industry for the year 2015-16.

Sheikh Pervez Ahmed assumed charge as senior vice president and Sheikh Abdul Waheed as vice president, Islamabad Chamber of Commerce and Industry. The handing and taking over ceremony was held at Chamber House in the presence of a large number of business community. Atif Ikram Sheikh said that government should consider reducing high rates of sales, withholding and other taxes and make taxation

system simpliPied attractive and easy that would help in broadening the tax base as well as improving tax revenue of the country.

He said the recently released Global Competitiveness Index highlighted that the tax rates and corruption were the most problematic factors for doing business in Pakistan and urged that government

should address these issues on priority to pave way for promotion of business activities and encouraging more investment in the country.

He thanked Founder Group members and the local business community for posing conPidence in his abilities and assured that he would concentrate on a focused agenda to promote the interests of

Collective efforts, truthfulness needed to resolve business community’s issues: Siraj Teli

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KARACHI

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hairman Businessmen Group (BMG) and Former President of the Karachi Chamber of Commerce and Industry (KCCI), Siraj Kassam Teli, while underscoring the need to make collective efforts, advised the newly elected KCCI ofPice bearers to work dedicatedly and exhibit truthfulness throughout their tenure in order to resolve issues being faced by the business and industrial community of Karachi. Speaking at the 54th Annual General Meeting of the Karachi Chamber of Commerce and Industry, BMG Chairman urged all BMGians to work really hard for the

betterment of the country, Karachi city and the business & industrial community. “Collective vision and collective efforts are needed to resolve issues. If we work dedicatedly and remain truthful, we will surely succeed in resolving all issues being faced by small traders, businessmen and industrialists of Karachi”, he added.

The AGM was also attended by Vice Chairmen BMG, Tahir Khaliq, Zubair Motiwala, Haroon Farooki and Anjum Nisar, Outgoing OfPice Bearers, Iftikhar Ahmed Vohra (Outgoing President), Muhammad Ibrahim Kasumbi (Outgoing SVP) and Agha Shahab Ahmed Khan (Outgoing VP), Incoming OfPice Bearers Younus Muhammad Bashir (newly elected President), Zia Ahmed Khan

(Newly elected SVP), Muhammad Naeem Sharif (Newly elected VP), Former Presidents and KCCI Managing Committee members.

Congratulating the newly elected President Younus Muhammad Bashir, Siraj Teli said, “We expect a lot from the newly elected President and I am fairly optimistic that Karachiites and the Karachi Chamber would surely benefit from the vast experience of Younus Bashir who has been associated with the Chamber and Site Association of Industry for a long time.”

He also paid glowing tribute to the outgoing office bearers for their efforts towards highlighting and resolving a number of issues being faced by the business and industrial community.

business community. He highlighted energy crisis, security issues, high tax rates, complicated taxation system and lengthy processes for starting business as the major factors that needed urgent attention of the government for smooth growth of business activities. Muzzamil Hussain Sabri, M. Shakeel Munir and M. Ashfaq Hussain Chatha.

American chamber asks ukraine pM to suspend customs value goods he American Chamber of Commerce in Ukraine has asked Ukrainian Prime Minister Arseniy Yatseniuk and Finance Minister of Ukraine Natalie Jaresko to suspend cabinet resolution No. 724 on the benchmarks of the customs value of imported goods, the chamber said in a statement forwarded to Interfax-Ukraine.

The chamber said that the concept of “the benchmarks of the customs value during customs clearance” of imported goods.

According to this resolution, the customs authorities have grounds to apply the benchmarks of the customs value within the risks management system.

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Sri Lanka fruit, vegetable exports can top $1 billion Saturday October 3, 2015

World

COLOMBO: Sri Lanka could touch $1 billion export mark in fruits and vegetables and all processed items with the high demand from China and the EU markets.

“But supply is not available cope with the demand, Lanka Fruits and Vegetable Producers and Exporters’ Association President Annas Junaid said.

“Last year we exported US$ 350 million worth of fruits and vegetables and this year it could reach more than US$ 500 million. But due to the every high demand for pineapple and other fruits and vegetables including processed items, we could not cater to the demand,” Junaid told at their 34th Annual General Meeting held on Wednesday.

French customs seizes 115 live scorpions hidden in shipments

Malaysian police seize 12kg syabu, heroin, cocaine

PARIS

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ustoms agents at Paris’ Charles de Gaulle airport have seized 115 live scorpions hidden in two shipments from Cameroon to the U.S., perhaps destined for sale on the Internet.

Customs ofPicers showed off the large, black scorpions of the Pandinus dictator variety a protected species. The Pirst batch of 69 scorpions was discovered Sept. 18 in 19 plastic boxes containing centipedes.

Days later, customs agents intercepted 46 scorpions found in 35 plastic cups. Both were declared as samples for medical research. However, the recipient was identiPied as individual in the United States who sells numerous “new animal companions” on the Internet.

Last year, French customs seized 1,392 live animals protected by the Convention on International Trade in Endangered Species.

Meanwhile, Societe Generale SA is considering shutting hundreds of bank branches in France as more

clients go online.

The bank is considering closing 20 percent of branches by 2020 in France, the Force Ouvriere union said in a statement. Societe Generale said the numbers have not been Pinalized, though it wants to “optimize” its network in a program that has begun with 40 branch closures in 2015. Societe Generale, which like UniCredit SpA and Barclays Plc is aiming for a leaner and less bureaucratic bank, estimates that about 42 percent of clients visit one of its French branches once a month, down from 57 percent in 2007. The bank will Pinalize its new plans for branch reductions by year end.

HSBC Holdings Plc’s analysts raised their recommendations for Societe Generale and its larger French competitor BNP Paribas SA to buy after their shares fell since Jun. Job cuts at their French networks may also improve the cost base, the analysts wrote in the note to clients. The bank said the overhaul of its retail network will focus on urban areas and it aims to increase the average size of remaining outlets. The French retail network consists of more than 2,200 branches, excluding the Credit du Nord brand. Societe Generale’s French consumer-banking unit generated a 419 million.

This followed a 0.9 per cent decline in the second quarter and is the fastest pace of decline since the first quarter of last year, when prices also moderated 1.3 per cent.

The estimated price fall was in line with expectations, as analysts have forecast prices to fall by 4 to 6 per cent for the full year. Private home prices have fallen for eight straight

quarters and are down 8 per cent from their last peak in the third quarter of 2013. The price fall in the third quarter was across all market segments. Prices in the central region fell an estimated 1.3 per cent, more than the 0.6 per cent fall in the second quarter.

Prices in the city fringes fell 1.5 per cent, more than.

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KUALA LUMPUR

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olice have arrested 12 Africans and seized over 12kg of syabu, heroin and cocaine. Inspectorgeneral of police Tan Sri Khalid Abu Bakar revealed this in his Twitter account at 4.30pm today.

He said the suspects were picked up during a Special Tactical Intelligence Narcotics Group (STING) operation in Port Klang, Putrajaya, Cyberjaya and KL. In his tweet he said “Syabas STING @PDRMsia tangkap 12 Warga Afrika rampas lebih 12kg Syabu, heroin dan Cocaine di Port Klang, Putraya, Cyberjaya dan KL. Go PDRM Go” Meanwhile, Traders and businesses that abuse the Goods and Services Tax (GST) system should beware because the Customs Department has its eyes on them.

Customs deputy director-general Datuk Subromaniam Tholasy said those who manipulated the system would be called out.

hong kong customs seizes 3.8kg suspected cocaine worth hk$4.4m

Singapore private home prices dip 1.3% in Q3 A

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rivate property prices are estimated to have weakened faster in the third quarter of this year, with steeper declines across all market segments.

Prices fell about 1.3 per cent in the third quarter over the second quarter, according to Plash estimates from the Urban Redevelopment Authority (URA) on Thursday (Oct 1).

“The department has its methods of detection,” he said.

Customs opened 251 investigation papers on GST-related cases between April and September. Five cases have gone to court, said Subromaniam. These, he said, involved businesses or traders that did not collect GST despite being registered and those who failed to issue tax invoices. Subromaniam said once the department detected manipulation, the accounts of the traders or businesses would be sent for auditing or investigation.

“I urge businesses to declare properly because the system is intelligent and will detect any form of manipulation,” he said.

Subromaniam said some businesses cheated by declaring that they exported products.

“Exports are zero rated so they don’t have to pay tax but Customs controls import and export, and we will double check on our system,” he said. “Some people think they are very smart, not knowing that our system will Pind them out.”

traveler from Brazil was arrested at Hong Kong International Airport here the other day after her “exceptionally heavy” empty suitcase yielded 3.8kg of suspected cocaine with an estimated street value of HK$4.4 million.

It was the third such seizure at the airport in seven days.

The woman, 23, arrived in the city from Recife, Brazil, via Addis Ababa, Ethiopia.

During customs clearance, ofPicers emptied her check-in suitcase but found it was still a hefty bag, ac-

cording to the Customs and Excise Department.

“In-depth examination led to the discovery of three slabs of suspected cocaine concealed inside the false compartment of the suitcase,” the department said today.

“It is believed the drug trafPickers tried to use this concealment method to evade customs detection.” The traveller, who claimed to be a saleswoman, would appear in Tsuen Wan Court tomorrow on one count of trafPicking in a dangerous drug, the department said.

Ireland customs seizes drug haul worth €750k at Dublin airport

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drug haul thought to be worth €750,000 has been seized by Customs OfPicers at Dublin Airport. The consignment Pilled with herbal cannabis and Pive-and-a-half kilos of a white powder thought to be cocaine and is believed to be the

biggest haul seized at the hub this year. OfPicers became suspicious when they detected a strong smell of coffee coming from the parcel, the Irish Mirror reports.

They know drug trafPickers often use coffee as a way of distracting the sniffer dogs from picking up the scent of contraband.

But not even the clever coffee tactics could fool the customs experts

and sniffer dogs and the package was seized for further inspection.

In what has been described as a “game of cat and mouse” ofPicers led

by Mark Newman, produced the narcotic identiPication kit. And when their suspicions were conPirmed the package is then conPiscated. Mark said: “I’d probably say this is the largest seizure this year – without a shadow of a doubt.

“I suppose I’ve always looked at this job like a high-proPile game of cat and mouse, you’re constantly chasing the next target.”

The discovery was Pilmed for this week’s Stop, Search, Seize on Sky1.

The programme followed the Irish Customs Service who work on the frontline of our borders to protect illegal goods being brought into the country.

The documentary shows what steps are taken at before, during and after a drugs seizure.

Following a conPiscation, ofPicers in Dublin Airport will then work with others across Europe to alert them to the Pind. Tonight’s episode shows how customs bosses distribute pictures of the drugs and the methods of concealment to airports around Ireland and Europe.

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Singapore to deploy driverless vehicles at ports SINGAPORE: Singapore will test the use of driverless trucks in its ports, with the government saying autonomous-vehicle technology holds transformative potential for the city-state’s transport system. Permanent Secretary for Transport Pang Kin Keong says the Ministry of Transport will test “truck platooning” technology for moving containers between port terminals.

A truck with a driver will be followed by a convoy of three or four driverless vehicles. He is quoted in a Singapore Economic Development Board report as saying this reduces manpower reliance and increases productivity while benefiting Singapore’s logistics sector, which has been facing a shortage of drivers. Pang says the government doesn’t intend to replace a driven car with a driverless one, but to explore autonomous-vehicle technology in shared or public transport to bring new forms of mobility for the masses with the convenience of private transport.

B’desh exports show surplus of $818m in July DHAKA

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angladesh’s current account surplus in the first month of the current 2015-16 fiscal year dwindled, hit by slump in exports and inward remittance, a central bank official said Sunday. The Bangladesh Bank (BB) official told Xinhua that the current account balance showed a surplus of 818 million U.S. dollars in July, the first month of the current fiscal year 2015-16 (July 2015- June 2016), against the surplus of 972 million U.S. dollars during the corresponding period of the previous fiscal year (July 2014-June 2015). As both export and remittance income plunged, the current account balance surplus slumped, meaning Bangladesh’s economy absorbed more than that it produced in the month, said the official who preferred to be unnamed.

Bangladesh’s exports growth in the first month of the current fiscal year dipped about 12 percent year on year to 2.63 billion U. S. dollars, showed the BB data. On the other hand, it showed inflow of remittances from some 9 million.

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UAE-USA strengthen port relations he USA and UAE have reached a historic agreement that will see the Port of Sharjah and Port Canaveral work together to build on international trade and logistics investment prospects.

This ‘Sister Ports’ agreement was signed at a ceremony hosted by Gulftainer – the largest privately-owned, independent port operator in the world which recently expanded into the USA with a new concession at Port Canaveral. The United Arab Emirates’ Department of Seaports & Customs, Government of Sharjah and the USA’s Canaveral Port Authority of Florida will also exchange information and knowledge and develop commercial, technological and cultural ties.

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Ports & Shipping

port of Los Angeles and port of Long Beach to update clean Air Action plan

LOS ANGELES

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nvironmental teams from the Port of Los Angeles and Port of Long Beach will hold a joint community workshop on Oct. 14 to gather input on the next update of the Clean Air Action Plan (CAAP). Initially adopted in 2006 and updated in 2010, this historic environmental plan called for aggressive strategies that have proved highly effective in reducing air pollution from port-related sources.

The Clean Air Action Plan Update Community Workshop will be held 3-5 p.m., Oct. 14, 2015, at Banning’s Landing Community Center, 100 E. Water St., Wilmington, 90744. The workshop is open to the public.

Since its adoption, the CAAP has resulted in unprecedented reductions in air pollution from the ships, trains, trucks, terminal equipment and harbor craft that operate in and around the ports.

Over the past decade, levels of diesel particulate matter have dropped 82 percent, oxides of nitrogen fell 54 percent and oxides of sulfur have declined 90 percent due largely to pollution-reducing strate-

gies implemented under the plan.

The Ports envisioned the CAAP as a “living document,” and have periodically reviewed and updated it. In recent months, the ports have started gathering input from multiple stakeholders.

The workshop will include a presentation outlining the scope and timeline of the next update of the CAAP, as well as an interactive dialogue with attendees.

The Port of Los Angeles and Port of Long Beach are the two busiest ports in the nation, first and second respectively, and combined are the 10th busiest port complex in the world.

Saturday October 3, 2015

Abu Dhabi prepares for biggest cruise season ABU DHABI

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he 2015/16 cruise season is set to be Abu Dhabi’s busiest to date, with the new Abu Dhabi Cruise Terminal – which will open in the next few months – expecting to welcome 220,000 passengers from 113 ship calls. The new terminal will be located in Zayed Port and offer facilities including 24-hour immigration and customs facilities, banking facilities, tourist information, shops, restaurants, and bus and taxi stands.

MSC Cruises will be the first cruise line to make the new terminal its home, with the 2,550-passenger MSC Musica offering 16 week-long Arabian Gulf sailings out of Abu Dhabi between December 13 2015 and March 26 2016, calling at Khor al Fakkan in Sharjah, Muscat and Khasab in Oman, and Dubai in the UAE. Meanwhile, Celebrity Cruises has announced it is to homeport in Abu Dhabi in the winter of 2016/17.

Celebrity Constellation, the co-flagship of Celebrity Cruises’ 11-strong fleet, will offer guests a choice of sailings of between nine and 14 nights from November 2016 until mid-January 2017, all beginning and ending in the UAE capital. Royal Caribbean International will return to the Arabian Gulf with 16 roundtrip sailings for its 2,000-passenger Splendour of the Seas from December 2015 to March 2016.

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Audit finds Vancouver port truckers underpaid

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VANCOUVER

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ruck drivers serving Port Metro Vancouver have been underpaid by container trucking companies as part of a settlement following a March 2014 strike at the port, according to an audit, while the union representing truckers is challenging a new truck licensing system at the facility.

According to OfPice of the British Columbia Container Trucking Commissioner, six audits of Pleets have been completed. It found they did not meet their obligations to pay their drivers rates retroactive to early April 2014, as required.

The commissioner’s ofPice is currently evaluating what sanctions it will take against the six licensees. A report by Business in Vancouver said the names of the trucking companies have not been released

pending their notiPication. It also reported the union representing some 1,800 truckers at the port, UnPior, said the amount owed to truckers is “in the millions.”

In a statement, British Columbia Transportation and Infrastructure Minister Todd Stone said another 13 audits are under way to see whether other container trucking companies are complying with the Container Trucking Act. It was passed and put into law

following the 2014 Port Metro Vancouver truck driver strike, to bring rate regulation to the facility as well as appointing a container trucking commission for BC to enforce the rules. “A number of other audits are ongoing and when complete, the status will be posted to the commissioner’s website,” Stone said. “If an audit finds a licensee isn’t meeting its obligations under the Container Trucking Act and its regulations.

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British court jails woman for smuggling Khat worth £24,000 LONDON: A woman from Hounslow caught smuggling Khat with a street value of £24,000 has been jailed.

Nassin Hassan Badhi, of St Giles Close, pleaded guilty to an importation offence and was given an 18-month custodial sentence at Isleworth Crown Court, according to Border Force.

The 42-year-old UK national was stopped by Border Force officers in the green channel at Heathrow’s Terminal 3 after arriving on a flight from Johannesburg, South Africa, on May 15.

Saturday, October 3, 2015

CUSTOMS BULLETIN

court seeks complete challan of smuggling case KARACHI

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he Special Court of Customs Taxation and AntiSmuggling directed the Pakistan Customs’ investigation ofPicer to submit challan in a case pertaining to smuggling of electronic goods.

Judge Syed Faiz Rasool Rashdi adjourned the hearing of case till October 28. According to the prosecution, Rangers personnel and Pakistan Customs’ Anti-Smuggling Organization intercepted a bus at Hub Chowki and recovered a huge quantity of smuggled air conditioners, hair trimmers and other home appliances worth Rs 6 million rupees. Subsequently, bus driver Muhammad Azam was taken into custody and an FIR was registered against him and Abdul Bari, owner of the goods.

On September 18, the court had ordered release of Azam on bail. Meanwhile, The Special Court of Customs Taxation and Anti-Smuggling has sought a report from Karachi Central Jail’s superintendent on whether a suspect, who is behind bars for his involvement in the sale of smuggled Iranian petrol and diesel, is a minor.

Customs recovers Rs 6.54m evaded tax from Paramount Spinning KARACHI

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akistan Customs’ investigation ofPicer has informed the Special Customs Taxation and Anti-Smuggling Court that Rs 6.54 million out of Rs 6.75 million in terms of of evaded customs duty and taxes has been recovered from M/s Paramount Spinning Mills Limited after lodg-

ing an FIR against it.

Investigation ofPicer Syed Abbas Raza told the court that the company has forwarded demand draft in favour of collector of Customs Exports Port Qasim, Karachi after the case was registered against its directors.

He told the Judge that Sheikh Riaz Ahmed, Abdul Shakoor, Tanveer Ahmed and Naseer Ahmed, the directors of M/s Paramount Spinning Mills Limited, and Safeer Ahmed proprietor of M/s Aliz International and Mirza Muhammad Kamil Baig proprietor of M/s Union Enterprises have been re-

leased on bail.

According to the prosecution, M/s Paramount Spinning Mills Limited imported 50 consignments of Zippers YKK Brand into Tariff Area from M/s YKK Pakistan (Pvt) Limited, Export Processing Zone, Karachi.

M/s Aliz International Piled 34 GDs involving Rs 13.363 million with duty and taxes estimated at Rs 4.49 million. Whereas M/s HiNess Enterprises Piled 10 GDs valued at Rs 4.14 million with duty and taxes to the tune of Rs 1.33 million and 6 GDs worth Rs 2.841 million with duty and taxes of Rs

927,674 were Piled by M/s Union Enterprises.

All the consignments were cleared under SRO 492(I)/2009 without payment of duty and taxes on indemnity bond and post dated cheques. Later it transpired that manufacturing unit of M/s Paramount Spinning Mills, Lahore has been closed for over a year and the importers had failed to fulPil legal requirements. The post dated chaeques were sent to the banks but they were dishonored.

Subsequently an FIR was registered against the importer and clearing agents for fraudulently

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

evading customs duty and taxes.

The hearing of case was adjourned till October 29.

Meanwhile, Model Customs Collectorate (MCC) Gwadar has been making all out efforts to curtail smuggling of non-duty paid and contraband items in the area. Even on gazetted holidays ofPicers and ofPicials of the collectorate stay alert. Assistant Collector MCC Preventive Gwadar, Tausif Aman Gurchani told that as a result of this strategy in the month of September, 2015 only the collectorate has seized smuggled goods worth Rs 70.53 millions.