Oct 9 layout 1

Daily on www.customsbulletin.com

Find us on

PakISTaN’S fIRST INDEPTh NEwSPaPER ON CUSTOMS

Daily

Vol 1 Issue No. 198

Karachi, Fri October 9, 2015

ISLAMABAD

CUSTOMS BULLETIN REPORT www.customsbulletin.com

S

anaullah Khan): Port Qasim Authority leased out 253.18 acres of land to three companies, surprisingly on different prices during last two years on the directions of federal government.

It has been disclosed in ofTicial documents of Min-

Price Rs. 14.00

istry of Ports and Shipping exclusively available with Custom Today. According to these documents Port Qasim Authority leased 40 acres to Pak Suzuki Motor Company Limited @ Rs.5 million per acre situated in Eastern Industrial Zone of PQA. Pak Suzuki Motor Company Limited will utilize this land for the period of 50 years. According to the agreement the said project will be operational within Tive years from the date of possession of plot.

Customs to seek support of FPCCI, KCCI against sale of smuggled goods

Customs Faisalabad confiscates smuggled goods worth Rs 1.8m

CM Qaim Ali Shah rejects subsidy on sugarcane

Customs Court adjourns 25 cases on Wednesday

Belgium keen to enhance trade ties with Pakistan: Envoy

The Pakistan Customs is likely to take into confidence the business | SEE PagE 02 |

The Customs Intelligence and Investigation (I and I) Faisalabad | SEE PagE 03 |

Qaim Ali Shah has said that the provincial govt will not give any subsidy | SEE PagE 04 |

In the Special Court of CustomsTaxation and Anti-Smuggling, dierent cases | SEE PagE 12 |

The Ambassador of Belgium, Frederick Verheyden informed that a multisectoral | SEE PagE 09 |

2

www.customsbulletin.com

FBR to launch AMAPS soon Friday, October 9, 2015

National

ISLAMABAD: Federal Board of Revenue decided to establish state of the art Appeal Management and Processing System (AMAPS) to resolve, monitor and manage tax and appeals issues .

Sources told that FBR legal wing already proposed the new AMAPS system to the Board under the TAGR project. The legal wing is also reviewing the European appeal management and processing system.

Sources further told that current appeal management and processing system is old and require lot of up gradation.

Customs to seek support of fPCCI, kCCI against sale of smuggled goods

Customs PCa detects Rs 3.561m tax evasion by Telenor KARACHI

afTaB ChaNNa

www.customsbulletin.com

KARACHI

afTaB ChaNNa

ustoms Directorate of Post Clearance Audit PCA Karachi has detected tax evasion of at least Rs 3.561 million by M/s Telenor Pakistan (Pvt) Limited on import of XPOL Directional ANT DDX with standard accessories..

The PCA Karachi, during scrutiny of import data, found that M/s. Telenor Pakistan (Pvt) Limited, imported XPOL Directional ANT DDX- 17102170 with Standard Accessories and cleared the same vide GD No. KAPEHC-4575-14-07-2014 from MCC Appraisement (East), Karachi through their Clearing Agent M/s Ahbab Enterprises (C.H.A.L # 2034) by mis-declaring the goods under PCT 8517.6990 attracting customs duty @ 10% whereas the goods are correctly classifiable under PCT heading 8517.6290 chargeable to customs duty @ 20%. Thus M/s. Telenor Pakistan (Pvt) Limited by mis-declaration of classification evaded/short paid customs duty Rs. 2,884,973/sales tax Rs. 490,445 /- and IT Rs.185,648/- totaling Rs. 3, 561,066/. Therefore, M/s. Telenor Pakistan (Pvt) Limited have been requested to pay above mentioned short paid amount of duty/taxes within 10 days of receipt of this letter positively.

C

www.customsbulletin.com

T

he Pakistan Customs is likely to take into conTidence the business community to launch major crackdown against the sale of smuggled goods in the city’s major markets, Customs Today learnt.

Sources told Customs Today that the Customs Intelligence had reports that few traders of the city were allegedly involved in facilitating the smuggling of contraband items and their sale in the local markets. Collector MCC Preventive S Tariq Huda will soon meet with the leaders of the Federation of Pakistan Chamber of Commerce and Industries FPCCI and Karachi Chamber of Commerce and Industry KCCI so that the business community should not support those involved in smuggling of goods, sources added.

The sources claimed that the city traders were selling the smuggled goods that is tantamount to facilitate the smuggling of goods.

Meanwhile, Model Customs Collectorate (MCC) Gawadar has conTiscated wine, gutka, diesel, break oil, and smuggled generators worth Rs 70 million in September.

According to the details, Customs has conTiscated 1, 96000 liters of Iranian diesel from different godowns and also seized seven oil

tankers loaded with 3,32000 liters of smuggled Iranian diesel.

The sources further told Customs Today, that Gawadar collectorate along-with Maritime Security Agency (MSA) personnel raided different places and im-

pounded 5000 bottles of wine worth Rs 21.4 million while 10,000 cartons of beverages.

Sources further added that during a raid customs seized imported cigarettes and gutaka worth Rs 5.5 million during the month of Sep-

tember.

Related Customs Quetta confiscates smuggled goods worth million of rupees during September September 23, 2015 In "Karachi" Hyderabad ASO seizes 14,000 litres of smuggled Iranian diesel.

FBR recommends to put name of Riaz Qadeer in ECL LAHORE

MUhaMMaD NawaZ www.customsbulletin.com

F

ederal Board of Revenue (FBR) wanted to put the name of owner of Makkah Sugar Mills Riaz Qadeer in Exit Control List (ECL) because Riaz Qadeer is defaulter of tax amounting to more than one billion rupees. FBR

authorities show concern that the accused may try to go abroad.

Sources told Customs Today that FBR registered a case against Makkah Sugar Mills on October 4, 2015 in tax evasion and conducted different raids for the arrest of accused. Sources further said that Investigation and Prosecutionzone of FBR securitized the all the previous records of Makkah Sugar Mill and found that above said sugar mills not submit its sales taxes from FY 2009-10.

During investigations it was also revealed that Makkah Sugar Mills opened many bank accounts in different banks all across the country with the names of drivers and other employees.

FBR (I & P) zone registered a case against the owner of Makkah Sugar Mills in which two accused Riaz Qadeer Butt and Awais Qadeer Butt are nominated.

Meanwhile, The Federal Board of Revenue (FBR) Regional Tax OfTiceI (RTO-I) recovered Rs 105.7 mil-

lion by attaching the bank accounts of Pakistan Engineering Company.

The RTO-I has frozen the bank accounts of Pakistan Engineering Company in July in order to recover the evaded tax. Earlier, RTO-I issued notice to the accused company for the payment of income tax but it ignored the notices to avoid the taxes; therefore, department taking action recovered evaded tax by attaching bank account. The company was not paying the taxes since 2010.

The FBR recovered the amount

from the United Bank’s Regal chowk Lahore branch. Meanwhile, The Federal Board of Revenue (FBR) has failed to update its record in Urdu language as Prime Minister Nawaz Sharief has issued orders to all the federal departments on 6 July 2015 for updating their record into Urdu language. The article 251 of the constitution describes Urdu as the primary language but after 68 years, English is still in use as primary language in all government ofTicial documents.

3

www.customsbulletin.com

FBR awaits approval to provide tax data to World Bank ISLAMABAD: The Federal Board of Revenue (FBR) legal wing has excused for providing data to the World Bank without the approval of competent authority.

According to sources, legal wing of the FBR has directed all the field formations to collect data about the tax issues and tax cases and prepare a report. Sources further said that the legal wing will provide the data to the World Bank after the approval of competent authority. Sources also added that under the tax policy and tax administration programme, the World Bank has required the data. It is important to mention here that the FBR and the World Bank have started tax administration reforms programme.

federal govt to establish Southern Punjab Zone for fIa MULTAN

Friday October 9, 2015

National

faisalabad Customs confiscates smuggled goods worth Rs 1.8m

IMRaN aLI

www.customsbulletin.com

FAISALABAD

NaEEM ShEIkh he federal government has decided to establish a new zone for the Federal Investigation Agency (FIA) in South Punjab to tackle pendency, territorial and jurisdiction issues, which the agency has been facing in Punjab for years. As per details, the FIA will build a new zone named as Southern Punjab Zone (SPZ), Multan at the estimated cost of Rs.350 million. Federal Investigation Office SPZ would also have three circles at Divisional Headquarters including Bahawalpur, Dera Ghazi Khan and Sahiwal region. Over the past years, human trafficking has increased immensely in the South Punjab region and it was in the public interest that FIA Multan.

T

Customs adjudication to decide ayyan’s case soon ISLAMABAD

M faIZaN

www.customsbulletin.com

he Collector Customs and Adjudication will decide Ayyan Ali currency smuggling case soon.

As per details, the Customs adjudication is responsible for announcing its verdict within 120 days under the Customs Act-1969 Section-179. It has almost been over two months that customs adjudication is hearing Ayyan’s case on regular basis and many times it has issued show-cause notices to Ayyan Ali but she did not appear before the Customs adjudication even a single time. According to the sources, if customs Adjudication finds her guilty in currency smuggling case it will lead a penalty of Rs 500,000 or above and also will effect other cases upon her. It is pertinent to mention here that tomorrow will be the hearing date for Ayyan Ali at special tribunal bench in Rawalpindi.

T

www.customsbulletin.com

T

he Customs Intelligence and Investigation (I and I) Faisalabad has confiscated miscellaneous goods from a mini truck near Adda Sardar in Faisalabad.

As per details, the Additional Director I and I Faisalabad Azmat Tahira said that customs seized miscellaneous contents worth Rs 1.8 million during a snap checking at Adda Sardar.

The Customs impounded a mini truck bearing registration no.

F.S.J- 340 loaded with different smuggled goods, including black paper 19- Bags of 931- killograms, Zeera 20 bags, and Coconut 30 bags worth over Rs 500,000.

The Customs authorities asked the driver to provide legal documents of the said vehicle but he failed to provide legal possession of goods.

The Customs arrested the accused, impounded the vehicle and started further investigation Meanwhile, The Field Unit of Khushab Customs Intelligence and Investigations confiscated a trailer loaded with Iranian origin dates weighting 23,800 kilograms. The market value of seized truck is approximately Rs 20,00,000/-.

Sources told Customs Today that Additional Director Customs Intelligence and Investigations

Mrs. Azmat Tahira received credible information regarding above said vehicles. After receiving the tip-off she constituted a raiding team comprising Riaz Hussain (D.D), Malik Javed Iqbal, (SIO), Ch. Saeed Hayat, Muhammad Saleem, Bashir Hussain,( IO ), Muhammad Sikander, (UDC), Muhammad Tariq, M. Ashraf Qureshi, (sepoys ), and havaldar Sajjad Ahmed.

The raiding team intercepted a dumper truck bearing registera-

The Customs impounded a mini truck bearing registration no. f.S.J- 340 loaded with different smuggled goods, including black paper 19- Bags of 931- killograms, Zeera 20 bags, and Coconut 30 bags worth over Rs 500,000.

Faisalabad Customs collector reshuffles 27 officials

C

ustoms Collector Faisalabad Zullafqar Ali Choudhary has reshufTled 27 ofTicials, including four Deputy Collectors (DCs) and Assistant Collectors (ACs) , seven superintendents and 16 Inspectors.

According to the details, DC Wajid Ali has been posted as Head Quarter (H.Q), with all Anti-Smuggling Organization (ASO), Security and also Computer section project.

DC Rana Irfan Shauqat, were assigned duty as Airport, Manufacturing Bonds, Govt Post OfTice ( GPO ), and also duty drawback.

Furthermore, AC Umer bin Zafar Chattha will perform his duty as Export Branch, Recovery, Auction, and with Registration Licensing. AC Asim Awan has been transferred and holds charge as import branch, and main gate security.

According to the details, Zullafqar Ali Chaudhary has also reshufTled seven superintendents with imme-

diate effect.

Superintendent Mukhtar Hussain has been posted from export, recovery, security branch to rebate recovery and warehouse while superintendent Naeemur- Rehman has been shifted from State Ware House (SWH), Mainwali and Sargodha to I/C Anti Smuggling Organization (ASO) Faisalabad division and Air Port TrafTic (APT).

Superintendents Safdar Iqbal has been transferred from export branch to Government Post OfTice (GPO), Faisalabad.

tion number TLE-831 near river Jhelum in Khushab city and asked the driver of the vehicle who was identified as Mohiud-din son of Haji Bahaud-din to produce legal documents regarding possession of dumper truck. The driver failed to show the same.

After which Customs authorities seized the vehicle along with Iranian origin dates and registered a case against accused persons.

Sialkot aSO seizes smuggled black tea n Anti-Smuggling Organization Sialkot seized the imported black tea during an operation. As per details, Anti-Smuggling Organization raided a truck on credible information against the smuggled goods. Anti-Smuggling Organization has taken four sacks full of black tea into custody.

A

4

www.customsbulletin.com

Bank AL Habib launches Apni Car Auto Finance Friday, October 9, 2015

Business

KARACHI: Bank AL Habib has launched Apni Car Auto Finance to help customers acquire new and used/imported vehicles through convenient payment plans.

The facility features an easy procedure, quick processing, low mark-up and insurance rates, partial payment options, and fixed and floating rate options for the convenience of customers.

Bank AL Habib Limited was incorporated in 1991 and started operations in January 1992. It aims to be a quality financial service provider maintaining the highest standards in banking practices.

MCB Bank organises seminar to educate customers on global economy LAHORE

CUSTOMS BULLETIN REPORT www.customsbulletin.com

T

he MCB Bank Limited has organised a seminar under the title of “Current Economic Turmoil – Risks and Opportunities” at its head ofTice in the provincial capital to educate the customers on the performance of the global economy, existing risks and their implications for Pakistan.

The event also covered measures for suitable course of action to not

PaLPa calls off strike with conditions

only hedge these risks but also take advantage of economic opportunities through the use of various product offerings from MCB Bank. The global economy is in a state of turmoil at the moment, and global macro-economic events in the near term will trigger further uncertainties and risks in the global markets, which could affect Pakistan.

The seminar was largely attended by the senior management personnel of large and medium Pakistani corporate and businesses.

The discussion was initiated by the CEO and President of MCB Bank Limited, Imran Maqbool, during which he elaborated that MCB Bank

www.customsbulletin.com

he pilots association Wednesday announced to call off strike but with conditions. The Pakistan Airlines Pilots’ Association (Palpa) took the decision during a session of the Senate Standing Committee on Aviation in Islamabad today. Palpa President Amir Hashmi said that the association called off the strike on the guarantee of the chairman and members of the standing committee.

T

the pioneers of the banking industry in Pakistan. Addressing on the occasion, Group Head Treasury Mohammad Ramzan, CFA, explained that the global economy is at a critical juncture in time with several macro-economic changes that are expected to unfold in the near future. Pakistani businesses need to be wary of these developments around the globe as Pakistan is no longer immune to these in today’s economic environment. The seminar concluded after a detailed Q&A session in which the guests actively participated to clarify the working of Tinancial derivatives before the guests convened for refreshments.

State Life earned Rs 810 million profits in 2013

ISLAMABAD

CUSTOMS BULLETIN REPORT

continues to strive to serve its customers through un-matched services, ground-breaking product innovations and an overall culture of keeping clients abreast with the changes in the global and local economic landscape. Maqbool narrated that in addition to the Bank’s strong local presence spanning over more than 1200 branches, it continues to expand abroad with a total of 11 foreign operational branches. He also thanked the audience and the Bank’s customers for placing their trust in MCB Bank and hoped that their strategic partnership with the Bank continues to Tlourish in the same vein that has placed MCB Bank as one of

KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

S

tate Life Insurance Corporation has posted a proTit after tax of Rs810 million in 2013, showing 5.6 per cent growth over year 2012.

The company released the Tinancial report after a period of one and half year mainly due to non-functioning board of directors.

The proTit of State Life for 2013 was equal to 40.2% of the combined earnings of the six private-sector life insurance companies that operated in that year. However, State Life’s proTit was still less than the earnings of Jubilee Life Insurance (Rs941.4 million) and EFU Life Assurance (Rs929.1 million) recorded in the same year.

While State Life lags behind other life insurance market players in terms of proTitability, several key performance indicators show it is far ahead of its private-sector counterparts. For example, total assets

of State Life at the end of 2013 amounted to Rs420.8 billion after recording an increase of 20.5% over the preceding year.

In contrast, combined assets of the six private-sector life insurance players in 2013 clocked up at Rs102.4 billion, which is roughly one-fourth of the total assets of the government-owned entity.

Similarly, total gross premiums of State Life were Rs65.9 billion in 2013, which is 1.6 times of the combined total gross premiums of all private-sector life insurance players (Rs40.9 billion) in the same year.

RLNg rate finally decided at $8.63 per MMBTU ISLAMABAD

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he Oil and Gas Regulatory Authority (Ogra) has announced the provisional price of ReGasified Liquefied Natural Gas (RLNG) at $8.636 per MMBTU (million British thermal unit).

The earlier RLNG price was at $12.30 per MMBTU for power and fertilisers sector and $11.50 per MMBTU for others.

According to the notification by the authority the price of the RLNG per MMBTU will be $8.636 which includes LNG DES price $7.72578, PSO import cost $0.00884, Terminal Charges $0.66, PSO margin at 1.82pc ($0.14061) of DES price, transmission losses at 0.5 percent ($0.03863) of DES price and Retainage at 0.75pc ($0.06296) of total cost.

The Authority disallowed $0.05 per MMBTU administrative margin to the SSGC and SNGPL. “The gas companies have made a general contention on the margin issue and have failed to quantified or justified the same,” Ogra observed. The authority rejected PSO claim of 4pc margin and instead allowed the company 1.82 percent margin on DES price.

T

Sindh CM Qaim Ali Shah rejects subsidy on sugarcane KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

C

hief Minister Syed Qaim Ali Shah has said that the provincial government will not give any subsidy on sugarcane.

He said this while presiding over a meeting of the Agriculture De-

partment to discuss the new sugarcane price and review overall cane crop. He also directed the provincial Agriculture Department to work out an acceptable sugarcane price for the growers and millers.

Chief Secretary Siddique Memon, Principal Secretary to CM Alamuddin Bullo, Secretary of Agriculture Shahid Gulzar Shaikh, Secretary of Finance Sohail Rajpput and Cane Commissioner Agha Zaheer. Adviser to CM on Law, Murtaza Wahab, Sec-

retary of Law, Mir Mohammad Shaikh, and Advocate-General Abdul Fattah Malik also attended the meeting. The chief minister said that last year there were differences between growers and millers on the issue of sugarcane price. “This year I want you to settle this issue amicably. This time the Sindh government will not give any subsidy on its price,” he said categorically. It is worth mentioning here that the Sindh government last year for the Tirst time provided sub-

sidy to the sugarcane growers while the government used to provide subsidy to wheat growers. Meanwhile, The central bank has adopted a new strategy to curb the Tlow of fake currency notes in the country. Under the strategy, the State Bank of Pakistan (SBP) will ensure state-of-the-art security features in banknotes, develop necessary capacity and infrastructure with banks to issue genuine and authenticate banknotes to the public; as well as create awareness amongst

general public about the security features of banknotes. Following the strategy, SBP has issued new series of banknotes between 2005-2008 with signiTicantly enhanced security features comparable with those of Euro, Pound Sterling and US dollar. According to an SBP statement, recently the issue of counterfeit currency notes in circulation was discussed during a brieTing given by a team from SBP to the Senate’s Standing Committee on Finance.

www.customsbulletin.com

ADVERTISEMENT

5

6

www.customsbulletin.com

7

Friday, October 9, 2015

www.customsbulletin.com

KARACHI afTaB ChaNNa www.customsbulletin.com

T

he Directorate of Intelligence and Investigation-FBR prepared a seizure report worth Rs 800 million on world famous Axact’s TV channel Bol for illegally importing machinery and other equipments.

Director Customs Intelligence Asif Marghoob Siddiqui told Customs Today that Directorate of Intelligence and Investigation sought receipts and other documents related to the import of all the goods as it said that import duty and taxes were also not paid by Axact’s channel.

After failure from the Axact authorities, the director said customs authorities prepared a seizure report involving evasion of Rs 800 million du-

ties/taxes by the Bol TV on importing machinery and equipments for the transmission.

Now, the case of the Axact’s Bol TV is under adjudicating process and the case would be decided within the due course of time, Asif Marghoob added.

The Axact scandal came to light when the New York Times published an investigative report claiming that the Pakistani IT company made millions by selling fake degrees online.

Following the NYT story, Pakistan authorities were quick to act as Interior Minister Chaudhry Nisar Ali Khan ordered the Federal Investigation Agency (FIA) to launch a probe into the fake degree scandal.

Meanwhile, Directorate of Intelligence and InvestigationFBR, Anti-Smuggling (Customs), Karachi, during a late night raid on Tuesday took into custody more than 436 tons of

plastic granules of different origins.

Addressing a press conference at the Karachi Press Club, Director Asif Marghoob said that the goods were recovered from a godown located in Baldia, SITE areas by a team of Customs Intelligence, ASO. 67 tons of plastic granules is of Irani origin which is not importable and is a notiTied item.

The Irani origin plastic granules is brought only through unauthorized routes by way of smuggling. The Irani origin plastic goods have been formally seized under the Customs Act, 1969 and FIR has been lodged of the same.

The godown management was unable to produce any document of the owners of the smuggled goods on the spot.

Efforts are being made to arrest the persons involved in the smuggling.

8

www.customsbulletin.com

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

good and bad for economy

a

report from the International Monetary Fund says that the economy of Pakistan is gradually picking up after improvement in its fiscal discipline with minimum chances of imminent threat to the economy. The donor agency has projected the country’s real GDP growth at 4.5 percent this fiscal year thanks to macroeconomic stability, low oil prices, planned improvements in the domestic energy supply and investment related to the China-Pakistan Economic Corridor. The report feared that inflation could increase in coming months with the anticipated stabilization of commodity prices. On another note, a World Bank report about the state of the economy is not very promising and it seems the real situation is still out of the bounds of rating agencies such as Moody’s, Standard and Poor’s and Fitch’s reports.

No doubt the present government is taking various initiatives, involving foreign investors to set up economic zones in the country, but how the prevailing energy crisis will end is still a big question for the government. It is good omen that the foreign exchange reserves have crossed $20 billion mark and are increasing due to lower import prices and cheap commodity prices in the international market. Besides, the new interest rate corridor, introduced by the State Bank of Pakistan, is regarded as a major step toward improvement of the monetary policy framework, leading to greater financial autonomy. However, the donor agency seeks the government to plug loopholes and channels which are used for money laundering and the terror financing in the country.

As a matter of fact, all the donor agencies are seeking the government to introduce structural reforms to achieve high and durable growth over the medium term. The government sought to take step to ensure smooth supply of electricity and gas to the industrial sector and reduce fiscal risks. There is a need to accelerated pace of privatization and restructuring of public sector organizations to improve business climate in the country. Voices of concern are also being raised against rampant corruption in Pakistan and the government is advised to focus on reforms and try to overcoming structural challenges to arrest the falling exports, increase investment and job opportunities in the country. The government is already trying to stop tax evasion and enhance tax net, but implementation of vital policies through ‘office orders’ will not serve any purpose, but would worsen the situation.

Pakistan 10th least innovative country in world A

LAHORE

DR afTaB afZaL

www.customstoday.com

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.

9

www.customsbulletin.com

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.

Expo Centre will be built in Multan: khurram Dastgir MULTAN

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he new trade policy will be a gift and government is well aware of the problems of the exporters and nowadays for the enhancement of exports, value addition is the demand of the day to compete the international market, to overcome the electricity and gas issues of the industry gas pipeline projects with Iran and Turkmanistan are in progress. The government will facilitate the Multan Chamber of Commerce and Industry (MCCI) to build the Expo Centre adjacent to its building. These views were expressed by Federal Minister for Commerce, Engineer Khurram Dastgir Khan, in a meeting with the members of the MCCI. Mian Fareed Mughees Shaikh, Persident MCCI, raised the issues of textile and ceramic industries, withholding tax, gas and electricity ,sick industries and storage units for the export of mango in front of the Federal Minister for Commerce. The Federal Minister said Pak-China Economic Corridor will bring prosperity in Pakistan and we are working on two gas pipeline projects with Iran and Turkmanistan to overcome the gas and electricity problems of the industry as well as the availability of LNG will also improve the situation. The present government has a strong desire to create a good working relationship with the traders and the new trade policy will prove it that we are ready to give a genuine relief to the exporters but the government has reservations regarding the misuse of the relief. He said a new mechanism will be introduced regarding the refunding and the state Bank of Pakistan will monitor and scrutinize all this and the relief will directly go into the bank accounts of the exporters. He further said sustainable management of the institutions is necessay and the government will help out the exporters of Multan.

T

Friday October 9, 2015

Chambers

Belgium keen to enhance trade ties with Pakistan: envoy KARACHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

T

he Ambassador of Belgium, Frederick Verheyden informed that a multisectoral trade delegation from Belgium, comprising representatives of 12 leading companies, was currently on a visit to Pakistan to explore opportunities of enhancing trade between the business communities of the two countries.

Exchanging views with KCCI office bearers during his visit to KCCI, the Belgian Ambassador added that many Pakistani companies visited Belgium last month and now the Belgian delegation was also here within weeks to hold meetings with business communities in Karachi and Lahore in order to explore trade enhancement opportunities in engineering, information and communication technology, steel, aluminum, healthcare, metallic and wood scrap recycling, logs & timber, dairy products, cargo logistics, po-

tato processing and industrial equipment.

Abid Husain, Trade Commissioner, Economic and Commercial Representation, Embassy of Belgium, Ms. Karine de Vleeschouwer, Area Manager Central & South Asia of Flanders Investment & Trade, Younus Muhammad Bashir, President KCCI, Zia Ahmed Khan, Senior

Vice President KCCI, Muhammad Naeem Sharif, Vice President KCCI, Majyd Aziz, Former President KCCI and Managing Committee members attended the meeting.

He noted that during Fiscal Year 2015, Pakistan exported goods worth $496.01 million against $ 471.56 million in the same period last year, showing an increase of 5

Private sector asked to utilise market intelligence tools for enhancing trade

T

ISLAMABAD

CUSTOMS BULLETIN REPORT www.customsbulletin.com

he private sector was the driver of economic growth in Pakistan and it should be more proactive to focus on utilizing market intelligence tools in order to make informed decisions and compete more effectively in national and international markets. This was observed by Esam Alqarara, UNIDO Representative while addressing business community at Islamabad Chamber of Commerce and Industry. He said these tools greatly help in identifying new opportunities for promoting trade and exports.

Manuel Albaladejo, Industrial Development OfTicer, Vienna Interna-

tional Center, UNIDO said that Pakistani entrepreneurs could greatly enhance business prospects by utilizing market intelligence tools including modern data processing technologies and information deployment techniques. He said with increased pressures from globalization, awareness and usage of market intelligence tools has become essential for businesses to produce products that meet the international standards and improve the competitiveness in the domestic market. He assured that UNIDO was ready to cooperate with ICCI for creating maximum awareness about the importance of such tools in the business community.

Speaking at the occasion, Atif Ikram Sheikh, president, Islamabad

Chamber of Commerce and Industry said that business entities in many developing countries have achieved phenomenal results by developing strong market intelligence systems and stressed that UNIDO should join hands with major Chambers of Commerce and Industry in Pakistan to start training programs aimed at strengthening the capacity building of private sector for adoption of these latest business promotion techniques. He was of the view that UNIDO’s cooperation with trade bodies for organizing training programs, promoting exchange of knowledge and expertise towards the development of business intelligence systems and R&D activities in private sector would go a long way in assuring sustainable industrial development.

percent. The imports from Belgium amounted to $328.01 million as against $ 427.76 million in Fiscal Year 2014, indicating a decline of 23 percent. Although the trade balance was in favor of Pakistan but the trade volume of slightly above $800 million, was very low which needs special attention from both sides, President KCCI added.

Six major sub-sectors of textile industry closed down: Aptma he textile millers have revealed that the six major sub-sectors of textile industry have closed down due to energy crisis, high cost of doing business and inconsistency in government policies.

All-Pakistan Textile Mills Association Chairman Tariq Saud, in a statement, said that around 30 per cent or $3,467 million worth of the textile industry’s production capacity is not operating which was having a direct negative impact on growth of exports.

Due to underperformance of the textile industry, he said, Pakistan’s share in the global market also decreased from 2.2 per cent to 1.8pc during 2006-13.

T

10

www.customsbulletin.com

Hong Kong companies target Indian market Friday October 9, 2015

World

HONG KONG: To tap growth opportunities, Hong Kong companies are willing to look at relocating as well as setting up production units in India, according to the SouthEast Asian nation’s trading development council. The Hong Kong Trade Development Council (HKTDC) is the marketing arm for the country’s traders, manufacturers and service providers.

“India is seeing a rapid economic growth This is a market we should pay our attention to, not just to sell but also to explore other areas of collaboration including investment,” HKTDC’s Deputy Executive Director Benjamin Chau told PTI here today.

australian Navy seize 427kg heroin worth $126m

US Customs renders assistance to woman in distress

MELBOURNE

www.customsbulletin.com

CUSTOMS BULLETIN REPORT www.customsbulletin.com

T

he Australian Navy has seized 427 kilograms of heroin as part of anti-narcotics operations in the Indian Ocean. HMAS Melbourne made the discovery after intercepting a suspicious vessel in international waters last Friday.

The drugs have an estimated street value of $126 million.

Vice-Admiral David Johnston told a media brieTing in Canberra the drugs were located in a hidden compartment on a suspicious Tishing boat. “While on patrol, [HMAS] Melbourne was directed by the Coalition Maritime Force Headquarters to board a suspicious Tishing dhow [boat] in international waters in the Indian Ocean,” Vice-Admiral Johnston said. “During the inspection of the [boat] and her crew, a hidden compartment was discovered that was Tilled with a suspected narcotic, later identiTied as heroin.”

The drugs have since been destroyed. Vice-Admiral Johnston said

O

Australian Navy vessels had intercepted and destroyed 4,800 kg of drugs since February last year.

“We know that one of the key sources of terrorism funding is the illegal narcotics trade, and this latest haul is part of the ongoing Coalition counter-terrorism contribution,” he said. HMAS Melbourne’s Commanding OfTicer Commander Bill Waters has paid tribute to the ship’s crew.

“This latest intercept shows our continuing vigilance is essential in the Tight against terrorism,” he said in a statement. “The entire crew has worked tirelessly for a result of which we are extremely proud.” It is not the

Tirst time HMAS Melbourne has been involved in a major drug bust. “Melbourne is on her eighth deployment to the Middle East Region and is the 61st rotation of a RAN vessel in the region since the Tirst Gulf War in 1990,” ViceAdmiral Johnston said. “The ship was highly successful on the previous deployment which culminated in narcotics interceptions valued at about $1.2 billion over the course of the mission that concluded in February last year. “We know that one of the key sources of terrorism funding is the illegal narcotics trade, and this latest haul is part of the ongoing Coalition counter-terrorism contribution.”

Canadian police seize 2kg cocaine, meth

ver two kilograms of cocaine has been seized following a police investigation that led officers to a home in Esterhazy, Sask., near Yorkton. The search warrant involved officers from the Esterhazy detachment of the RCMP with assistance from the Yorkton police canine unit. Officers from the Yorkton police as

well as RCMP members from Kamsack and Moosomin also assisted in the raid.

RCMP said Wednesday that the search warrant, at a home on the 800 block of Gonczy Avenue in Esterhazy, led them to a significant cache of illicit drugs including: 2.2 kilograms of cocaine. 450 grams of crack cocaine.

Several grams of crystal meth.

They also seized a large amount of Canadian currency and two firearms. A 21-year-old man from Esterhazy was arrested and is facing allegations of drug trafficking and several weapons-related charges. Related RCMP charges 15 people after two-year long international drug investigation.

T

FALFURRIAS

CUSTOMS BULLETIN REPORT

wo agents from Customs and Border Protection’s Air and Marine Operations (AMO) rendered agents carry woman in distrees to safety assistance to a 37year-old woman who was suffering from severe heat-related injuries.

The woman was part of a group of three individuals who called 911 in need of assistance after becoming lost in the remote ranchlands.

At approximately 3 p.m. the McAllen Branch of AMO received an assist request and dispatched a helicopter with a certiTied Air and Marine Emergency MedicalAgents from Border Patrol and Air and Marine Operations help subject into ambulance Technician on board. After a short search, the group was located and the EMT deployed in order to assess the severity of the woman’s medical condition. The woman was semi-conscious, severely dehydrated and vomited the

T

Uk police seize haul of cannabis

he site where they were found was described as a purposebuilt plantation with some of the plants as tall as 4ft.

The plants were piled into rubbish sacks and taken away to be destroyed. Inspector Mike Darby, of Bridport police, said: ‘This is another excellent result by Bridport Safer Neighbourhood Team in preventing drugs circulating in West Dorset. ‘Sadly for the growers it would appear we have just beaten them to the mark by nipping this in the bud and harvesting the cannabis before them.

‘We know in the Burton Brad-

TPP trade deal boosts chicken imports in Canada

C

MONTREAL

CUSTOMS BULLETIN REPORT www.customsbulletin.com

anadian restaurants aren’t holding out much hope that the massive new PaciTic Rim trade deal will boost the availability of the antibiotic-free chicken their customers are increasingly craving.

The Trans-PaciTic Partnership

deal announced Monday will open an additional 2.1 per cent of the Canadian chicken market to imports in addition to the 7.5 per cent existing threshold. (Two per cent of the turkey market, meantime, has been opened up under TPP).

That would add more than 23.5 million kilograms of chicken over Tive years to the nearly 81 million kilograms of products covered by

import controls that came into Canada mainly from the U.S. last year. “The change is so small we’re highly doubtful it will be a catalyst for farmers here to be more innovative and more responsive to consumer needs,” said Joyce Reynolds, executive vice-president of Restaurants Canada.

She added Canadians’ love of chicken wings will likely trump any

water the EMT attempted to give her. The pilot called for an ambulance and directed Border Patrol agents to the scene to assist. While in Tlight aboard the AMO helicopter to a pre-determined location, the EMT administered intravenous Tluids and prepared the woman for transport by ground ambulance.

The ambulance transported her to the Brooks County Airport in Falfurrias where she was loaded onto an air ambulance and Tlown to a local hospital. The other two people in the group were arrested by Border Patrol agents.

The McAllen Air and Marine Branch is part of the Joint Task Force-West South Texas Corridor, which leverages federal, state and local resources to combat transnational criminal organizations.

Meanwhile, US Customs and Border Protection (CBP) ofTicers assigned to work at the Lincoln-Juarez Bridge seized a signiTicant amount of methamphetamine valued at more than $1.3 million in one enforcement action.

demand on a large scale for antibiotic-free chicken from producers here or abroad.

But Sylvain Charlebois, professor of distribution and food policy at the University of Guelph’s Food Institute, is more optimistic that the new trade deal could spur imports of antibiotic-free chicken and push Canadian suppliers to respond in order to preserve their market-

stock and West Bexington rural area that these plantations are set up annually and we regularly discover them. ‘I have no doubt the same people are cultivating these plantations every year and it’s only a matter of time before we arrest them and prosecute for these signiTicant offences.’Meanwhile, Two smugglers have been jailed after customs ofTicers found over one million illegal cigarettes concealed within frozen chicken carcasses.

OfTicers from HM Revenue and Customs (HMRC) stopped a refrigerated lorry on Mitcham Road, Croydon in May 2013.

share. “Now with this opening, they may not have a choice but to actually comply to market demand,” he said in an interview.

The Chicken Farmers of Canada, which represents the country’s 2,700 poultry farmers, says it’s already working to reduce antibiotics and doesn’t believe additional imports will spur more production of antibiotic-free birds.

11

www.customsbulletin.com

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.

India to build 8 car scrap centres near ports NEW DELHI

CUSTOMS BULLETIN REPORT www.customsbulletin.com

o transform India into a automobile hub, the government will build eight scrap recycle centres near ports like Kandla to recycle used vehicles from world over and boost automobile exports which is Rs 2.5 lakh crore at present, Union Minister Nitin Gadkari today said.

“A Cabinet note will be floated soon in this regard. State Trading Corporation and Mckinsey has submitted a report in this regard,” Road Transport and Highways Minister Gadkari said addressing the media here.

Gadkari said the move follows National Green Tribunal (NGT) order banning plying of diesel vehicles which are over 10 years old in Delhi-NCR and the new policy will offer financial incentives up to Rs 1.5 lakh on surrender of such vehicles. “We have sought exemption of taxes up to Rs 50,000 on each vehicle which is at present Rs 1.5 lakh. Besides, on surrender of old vehicle at any of the the eight industrial units, a certificate for Rs 50,000 will be given producing which a buyer can get rebate of that amount.

T

Shipments of grain by railway total 17.0MMT in Ukraine during 2015 ccording to Ukrainian State Statistics Committee, during January-August 2015 shipments of grain by railway totaled 17.0 MMT in Ukraine. This is 25% more than during the same time period last year (13.6 MMT). Calculations of UkrAgroConsult show that in August 2015 grain loading by railway transport equaled 2.7 MMT, which was the largest monthly volume this year.

Moreover, the figure became record high for this period of the year. It should be noted that the bulk of grain shipments by railway were directed for exports from Ukrainian sea ports.

A

Ports & Shipping

asia Development Bank improvements at Colombo Port in Sri Lanka

COLOMBO

CUSTOMS BULLETIN REPORT www.customsbulletin.com

I

nfrastructure improvements at Colombo Port in Sri Lanka will offer “huge advantages” over competitors in the battle for transhipment business in south Asia, according to the Asian Development Bank (ADB).

Physical improvements combined with strategic marketing will give lines an incentive to set up transhipment hubs and attract increased investment over time, the

bank noted in a report assessing the effectiveness and sustainability of infrastructure works projects at the port. “Compared with its competitors, the improved efTiciency and capacity to handle large vessels will be huge advantages to Colombo Port given its relative proximity to India’s southern and east coast markets,” it said. “Most ports in the Indian subcontinent face congestion, and Colombo Port, with its added capacity, can continue to offer competitive shipping options and signiTicantly beneTit the regional trade.”

The ADB provided a loan of USD300 million to part-fund the

public-sector component of recently completed harbour infrastructure work. This was to accommodate three new terminals at the Port, with each new terminal to provide additional capacity of 2.4 million teu. Previously the maximum capacity of vessels able to enter Colombo Port was 8,000 teu with a maximum draught of 14.2 m. After the improvements, at the end of September, the port welcomed Marco Polo, a 396 m-long Explorer class CMA CGM vessel with a capacity of 16,000 teu.

“The new facilities make it the only port in the south Asia region with a deepwater terminal that can accommodate the newest breed of 18,000 teu container ships,” the report notes. “Higher efTiciency and faster delivery times will attract larger vessels and higher volumes of trade. “This enhances Sri Lanka’s competitiveness in international trade and it should draw investment to the country that will improve manufacturing and distribution centres and beneTit the Sri Lankan economy both directly and through the multiplier effect of increased operation at the port.”

The ADB’s mission is to reduce poverty in Asian countries through loans, grants, policy dialogue, technical assistance, and equity investments. The Sri Lankan government forecasts growth in cargo trafTic will enable the transport sector, including ports, to contribute 40% of total GDP by 2020.

Friday October 9, 2015

asustek Computer shipped 2 million notebooks globally in September 2015 WASHINGTON

CUSTOMS TODaY REPORT www.customstoday.com

sustek Computer shipped two million notebooks globally in September, hiking 127.3% from 88,000 units in August, while Acer shipped 1.7 million units, increasing 41.7% from 1.2 million, according to sources from supply chain makers.

Shipments are expected to continue climbing up to December, but both Asustek and Acer declined to comment on market speculation.

Asustek vice president Eric Chen previously forecast that the company will have a good fourth quarter and its shipments will grow each month in the quarter, helping its annual shipments to reach close to 20 million units. The sources expect Asustek’s shipments in October to stay at the same level as in September, but its shipment performance in December will be decided by holiday demand and exchange rate fluctuations.

The sources believe Acer and Asustek’s strong shipment growths in September were because consumers have started purchasing Windows 10 notebooks, channel retailers are seeing dropping inventory and are starting to order new notebooks to satisfy demand for the year-end holidays, and brand vendors usually raise their shipments in the last month of a quarter to help embellish their quarterly results.

A

US regulators grant final approval for building pipeline

U

HONG KONG

CUSTOMS BULLETIN REPORT www.customsbulletin.com

S Federal regulators granted Tinal environmental approval for building a pipeline and port facilities for shipping Rocky Mountain natural gas to Asia via the Oregon coast.

The Tinal environmental impact statement prepared for the Federal Energy Regulatory Commission

found that building and operating the gas terminal and pipeline would cause some environmental damage.

However, it noted the problems would be reduced to less-thansigniTicant with mitigation measures proposed by project developers. The Jordan Cove liqueTied natural gas terminal at Coos Bay would be the Tirst LNG port on the West Coast and would be linked to existing pipelines by construction of the PaciTic Connector Gas

Pipeline across southwestern Oregon. The $7 billion project is led by Calgary, Alberta-based Veresen Inc. Final commission approval is expected by the end of this year, with a notice to proceed from the commission by the middle of next year. Developers have said gas is not likely to begin Tlowing until 2019. The projects were initially envisioned for importing natural gas into the U.S., but development of gas deposits in the Rockies created an abundance of the

fuel that pushed the projects to switch to exports. Veresen President and Chief Executive OfTicer Don Althoff said in a statement that the Tinal environmental report was a signiTicant milestone and represented three years of work. Sen. John Barrasso, RWyo., urged the U.S. Department of Energy to approve the project quickly.

“The administration has given communities along the Gulf Coast and East Coast the opportunity to access overseas markets.

12

www.customsbulletin.com

Punjab NAB arrests seven former customs officials LAHORE: Seven high-ranking customs officials were arrested by the National Accountability Bureau (NAB), after being accused of causing losses to the national exchequer amounting to millions of rupees.

Those arrested by NAB include former additional collector Amir Raheel, former assistant collectors Muhammad Tufail, Khalid Mahmood, Muhammad Afzal Dogar, Muhammad Akram, Sheikh Nadeem Latif and Syed Abbas.

The officials have been arrested for causing Rs 180 million losses to the national exchequer and misusing their authority.

Friday, October 9, 2015

CUSTOMS BULLETIN

Customs Court adjourns 25 cases on wednesday LAHORE

M IMRaN MEhar

www.customsbulletin.com

I

n the Special Court of Customs Taxation and Anti-Smuggling, different cases were scheduled for hearing on Wednesday.

The Special Court of Customs Taxation and Anti-Smuggling heard 25 important cases and adjourned all cases until news dates.

Pre-arrest bail pleas of Muhammad Aslam, Ismail, Muhammad Shakeel and Shahbaz were also adjourned for Thursday and Friday.

The cases, including tax evasion, customs, smuggling and narcotics, were scheduled for the day. The Court also proceeded on statements and witnesses in four different cases. The cases of Lahore, Gujranwala, Sialkot and Jhelum were scheduled for hearing, in which Court ordered prosecution teams to complete investigation challans of the cases as soon as possible.

Chaudary Ameer Muhammad Khan Special Judge of Customs Taxation and Anti Smuggling Court also directed Court staff to speed up work so that cases which were getting late due non availability of permanent Judge can be deal on time.

Sialkot Excise fails to bring big property dealers under tax net SIALKOT

ZafaR MaLIk

www.customsbulletin.com

A

s many as 22 special vigilance teams of Excise and Taxation Department were lying failed to bring the big property dealers under the tax net after compiling their complete record, as the concerned Excise ofTicials also remained reluctant to take any legal action against the big property dealers , which had

been doing their big businesses of broker, property dealing , selling and purchasing the properties, taking commission of the agricultural lands and urban areas’ land openly by using their complete inTluence in Gujranwala Region’s all the six Sialkot, Narowal, Gujrat, Mandi Bahaud Din, HaTizabad and Gujranwala districts.

Despite the clear cut special directives issued by the Punjab government to bring all the property dealers under the tax net, the Excise department Gujranwala was still remaining failed to bring them under the tax net. Several Excise

and Taxation ofTicials had also the direct and indirect links with the accused property dealers and they were minting money by delaying the action against the property dealers with their mutual malpractices. Allegedly, the Excise and Taxation department ofTicials were showing much loyalty to their “blue-eyed” property dealers than the department, as they were adopting deliberated inordinate delay in action against the property dealers regarding bringing them under the tax net after compiling their complete ofTicial record, in this regard.

The inordinate delay in the ofTicial registration of the property dealers by the Excise and Taxation special vigilance teams in Gujranwala Division was causing great Tinancial losses of millions of rupees to the Punjab government, amazingly. Federal Board Revenue(FBR) was also remaining unable to collect the professional tax, income tax, wealth tax and sales tax from these property dealers , as the FBR had to take further steps for recovery of these taxes on the Tinal ofTicial registration lists of the property dealers to be compiled by the Excise and Taxation De-

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

partment in Gujranwala Division.

Reportedly, the big property dealers, having political inTluence, had been working openly at their luxurious ofTices established by them at the sites of almost all the grand housing schemes, residential colonies located in the posh areas in Sialkot, Narowal, Gujrat, Mandi Bahaud Din, HaTizabad and Gujranwala districts. When contacted , the concerned ofTicials of E&T said that the special teams were busy in registration of the property dealers besides making all out sincere efforts t bring maximum people under the tax net, in this regard.