Thursday, 7 September 2017

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Karachi, Thu September 7, 2017

KARACHI

WAQAR ANSARI

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he Directorate of Post Clearance Audit (PCA) has shown outstanding performance during the previous month of August 2017 and detected 13 cases involving revenue of Rs104.34 million. Sources told Customs Today that Directorate of Post Clearance Audit headed by Director Nadeem Memon detected cases pertaining to short payment of customs duty and sales tax/ and withholding tax (WHT) because of inadmissible conces-

sions, short payment of anti-dumping duty, additional sales tax, federal excise duty (FED) and income tax. The Directorate served four contravention reports and eleven audit observations during the month of August 2017 involving total duty and taxes of Rs104.34 million. The companies served audit observations or contravention reports include bulk containers in PICT, M/s Zubia Enterprises Karachi, M/s A.A Aluminum and Export, M/s Waheed Traders Company Karachi and seven others companies. Sources of Post Clearance Audit told that on the instructions of Di-

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rector PCA Nadeem Memon, Deputy Director Sajid Ali Baloch and other ofOicials of PCA scrutinized 222 import consignments data and found that the importers used wrong and/or false PCT Headings to get their consignments cleared in August 2017. The Directorate General of Post Clearance Audit (PCA) has unearthed tax evasion of Rs114.5 million by different importers during August 2017. Directorate General of Post Clearance Audit (PCA) Nadeem Memon directed all relevant officials and teams to expedite their efforts to recover outstanding amount from defaulters.

ASOs take into possession three NDP smuggled vehicles

DG Customs Valuation to revise VR No: 714/2015 by September 12

Customs I&I impounds illegally imported tyres

Musharraf Cyan formally joins PIA as CEO

Quetta Customs seizes smuggled items worth Rs27.9 million

ASO of Rawalpindi received a tip-off that a foreign origin used NDP Toyota Prado | See pAge 02 |

DG Valuation has decided to revise the Valuation Rulings No: 714/2015 | See pAge 03 |

ASO team of the has impounded non-customs paid tyers | See pAge 04 |

Dr Musharraf Rasool Cyan, who was appointed as chief executive officer of PIA | See pAge 11 |

Directorate of Customs I&I expedited their efforts to curb smuggling | See pAge 16 |


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Rebates worth Rs8.42b stopped to achieve revenue target Thursday, September 7, 2017

Islamabad

ISLAMABAD: The Federal Board of Revenue has stopped importers’ rebates worth over Rs8 billion to achieve revenue collection target of fiscal year 2015-16. According to the official documents, the officials at Model Customs Collectorates in Lahore and Port Qasim have stopped rebates worth Rs8.42 billion for the last one year.

ASos take into possession three NDp smuggled vehicles

two chinese held for currencies smuggling at BBIA ISLAMABAD

ISLAMABAD

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he Anti-Smuggling Organization of Rawalpindi and Islamabad Directorate received a tip-off that a foreign origin used non-duty-paid Toyota Prado jeep, Model 1999, is parked near Market at Bahria Town Phase-7 Rawalpindi. On a tip-off, the anti-smuggling staff of Directorate Rawalpindi rushed to the Bahria Town and found the Vehicle Toyota Prado parked outside the Market on Double Road. After waiting three long hours, no person came to claim the vehicle. The Anti-Smuggling staff informed the Sihala police station who impounded the vehicle in the presence of the police ofOicials and other witnesses and shifted it to the state ware house, Sector G-12, Islamabad. Meanwhile, Special Car Cell of Directorate General Customs Intelligence and investigation Islamabad has impounded a foreign origin used non-duty-paid smuggled Toyota Land Cruiser Cygnus Jeep worth Rs5.5million. According to details, the special car cell received a tip-off that a nonduty-paid smuggled Toyota land cruiser, Model 2004, with fake registration plate No: BF 8506 Sindh is moving in the area of Sector I-8 Markaz, Islamabad. The team of the special car cell, comprising Superintendent Saeed

he Islamabad Customs staff, deputed at the Benazir Bhutto International Airport Islamabad (BBIA), arrested two Chinese involved in the currencies smuggling into China, and recovered foreign currencies of $40,000, 6,700 Chinese Yuan and Rs56100 Pak rupees during the luggage checking. According to details given to Customs Today by Deputy Collector BBIA Shahid Jan that curbing of currency smuggling and stopping of tax evasion are the top priorities of the airport customs staff. Telling about the details of above said seizure of foreign and local currencies, he said two Chinese passengers named Yang Xin bearing Passport No: E64314316 and Yang Dongwei Passport No: G54177155 were intercepted during the checking at the Baggage Terminal. Shahid Jan said the customs staff recovered the abovementioned currencies from the possession of two Chinese persons. An FIR has been lodged against the currency smugglers and a case has also been forwarded to the Investigation and Prosecution (I&P) Department for further actions.

Ahmed, Intelligence ofOicer Gul Nawaz and Muhammad Kaleem with other members, intercepted the said vehicle and took it from the possession of one driver and possessor Syed Sabir Hussain Shah son of Syed Mubarak Shah, a resident of Panjool, district Mansehra.

On demand, driver and possessor of the vehicle failed to produce any import or auction documents except a photo copy of the registration book. So the team impounded the vehicle and shifted it to the headquarters, sector G-10, under section 17 of the Customs Act-1969.

Meanwhile, Special Car Cell has taken into possession yet another non-duty-paid smuggled Toyota land cruiser jeep V8 worth Rs11million. After initial investigation, the Car Cell has lodged an First Information Report (FIR) against the possessor of the vehicle.

customs tribunal decides reference in favour of m/s Yarkan

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ISLAMABAD

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customs reference has been filed with the Customs Appellate Tribunal for rehearing by M/s Yarkan’s case decided in favor of Collectorate of Customs, Islamabad. Customs Appellate Tribunal’s Member Technical, Muhammad Nasir Khan and Syed Muhammad Anwar would hear the matter. The case was carrying matter about

wrong evaluation of imported goods. Earlier, Customs Appellate Tribunal had Bench-II heard the case. M/s Yarkan had filed the case against Colelctorate of Customs, Islamabad. The appellant had challenged a decision announced by departmental adjudication in which it had maintained to seize imported fabric items by M/s Yarkan. The adjudication had found the importer of guilty of misevaluation of imported goods. The decision stated that the items were

cleared for value & 3.75/kilogram, however, the inquiry found its actual value as of Rs & 5/kilogram. Thereby, a difference of Rs281,163,4 had occurred in evaluation of cost-duty ratio with the said findings, the adjudication maintained to seize the imported fabric items. The appellant had challenged the decision before the tribunal and a single bench of the tribunal. Now the matter was likely to be taken soon by the tribunal.


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SHC seeks explanation from importer in internet cable import case KARACHI: The Sindh High Court has ordered an importer to submit an affidavit that he made an attempt to lift his consignment but prevented by the respondent Custom officers. A SHC appellate bench, comprising Justice Munib Akhtar and Justice Zulfiqar Ahmed Khan, was hearing a constitution petition filed by Minitech Corporation which imported internet cables. A Deputy Collector Customs appeared before the court in person on court’s notice. She told the bench that she has issued the release order as per court’s direction but petitioner failed to lift the same and instead blaming the department officers.

customs collector challenges order of appellate tribunal in Shc

Thursday September 7, 2017

Karachi

Dg customs Valuation to revise VR No: 714/2015 by September 12

KARACHI

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he Sindh High Court (SHC) has directed the customs authorities to file their para wise comments on a special customs reference application filed by Collector of Customs Collectorate of Preventive against order of the appellate authority in a case of smuggled/ non-duty paid 6800 liters HSD. A two-member bench, headed by Justice Munib Akhtar, was hearing the application. During the hearing, counsel for the customs department sought time to file their comments, therefore, the court granted time and adjourned the matter for two weeks.

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m/s R k Shippers moves Shc against lodging fIR KARACHI

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he Sindh High Court (SHC) has issued notices to the customs authorities and deputy attorney general on a constitutional petition filed by M/s R.K Shippers Karachi against lodging of First Information Report (FIR) and imposition of penalty. While hearing the petition, a two-member bench, headed by Justice Munib Akhtar also directed them to file their respective para wise comments on the next date of hearing. The court also adjourned the hearing for August 2017. Earlier, counsel for the petitioner stated in its constitutional petition that petitioner is engaged in the lawful business of import of ceramic tiles and always fulfils all the liabilities. He further informed the court that petitioner never involved in any criminal case and having good record in market.

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KARACHI

WAQAR AhmeD ANSARI www.customsbulletin.com

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irectorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Rulings No: 714/2015 by September 12, it is learnt. Surriya said the department is reviewing suggestions from importers to set new prices. She further said some valuations, which were issued in 2015, were viewing from the beginning. Moreover, the valuations will be set in view of rising prices in the international markets. Sources told Customs Today that an application was submitted by the importers to Customs Valuation in which change in prices of mosquito coil and aerosol insecticide spray was requested. Sources said the Valuation Ruling No. 714/2015 mosquito coil and aerosol Insecticide was issued on February 2, 2015. A meeting was held with the stakeholders on August 16, 2017. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained. The copies of contracts were made/LCs opened during the last three months showing the value of item in question and copies of sales

tax invoices issued during the last four months showing the difference in price (Excluding duty and taxes) to substantiate that the beneOit of difference in price is passed on to the local buyers. Meanwhile, Directorate General, Customs Valuation, Director General Surriya Ahmed Butt, has decided to revise the Valuation Rulings No839/2016, it is learnt. According to the details, Surriya Butt has said that the department is

Sources told customs today that application was submitted by the importers to customs Valuation in which change in prices of mosquito coil and aerosol insecticide spray was requested. Sources said the Valuation Ruling No. 714/2015 mosquito coil and aerosol Insecticide was issued on february

tax evasion: court awards jail term to suspect

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KARACHI

m B RANA

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ustoms Taxation and AntiSmuggling Court Judge Syed Faiz Rasool Rashdi has awarded six days imprisonment (already undergone period) and imposed a fine of Rs 50, 000 on a suspect, Muhammad Hanif, after he pleaded guilty. The convict was booked in a duty and tax evasion case of Rs 455,668.

During the hearing, the investigation officer produced the person before the court and who moved an application for pleading guilty and left himself on the mercy of the court. After the hearing, the court convicted him for already undergone period and fined him Rs 50, 000. In default of payment of fine, he shall further undergo two month simple imprisonment at Central Jail Karachi. According to the prosecution,

on credible information, a team of the customs department intercepted oil tanker bearing registration number TUB-429 and recovered 15,000 liters HSD valuing to Rs7,22,250. According to the prosecution, case was registered for violation of under section 2 (s) 16, 157 (2) & 178 of the Customs Act 1969 punishable under clauses (8) (9) & (89) of sub-section (1) read with sub-section (2) of the section 156 of the Customs Act 1969.

reviewing suggestions from importers to set new prices. She further said some valuations which were issued in 2016 were over viewing from the beginning. Moreover, the valuations will be set in view of rising prices in international markets. Sources told Customs Today that an application was submitted by the importers to Customs Valuation in which change in prices of Component of Split air conditioners conventional inventers, was requested.

Z.I Business Link challenges VR in Shc he Sindh High Court (SHC) has issued notices to the customs authorities and the deputy attorney general on a constitutional petition filed by M/s Z.I Business Link, challenging impugned Valuation Ruling No 863/ 2016, enhancing valuation on toilet soaps. While hearing the petition, a two-member bench, headed by Justice Munib Akhtar, also directing them.

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Customs Adjudication issues show cause to M/s Haji & Co for evading tax Thursday September 7, 2017

Lahore

LAHORE: Collector Customs Adjudication Ambreen Ahmed Tarar has issued a show cause notice to owner of M/s Haji & Company for evading tax amount. Collector directed the owner to appear in person tomorrow. According to the details, M/s Haji Muhammad Shabbir Chaudhary & Company (NTN 3781437) imported 38 consignments of potatoes. The importer had deliberately claimed the benefits of SRO 549/(I)/2008 and willfully avoided to pay sales tax @17%. During the scrutiny of import data of above said reporter it was revealed that the importer with the connivance of clearing agent deliberately deprived the government of its legitimate revenue of Rs8,143,998/- (on account of sales tax Rs6,92,398).

tribunal accepts appeal of customs Dept, rejects complaint of Nawab gull LAHORE

SAJID NAWAZ

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he Customs Appellate Tribunal has set aside the OrderIn-Original in a case Oiled by the Director, Directorate of Intelligence and Investigation-FBR Lahore, against Nawab Gull, a resident of Peshawar. The appeal, Oiled by Nawab Gull against the Director, Directorate of Intelligence and Investigation-FBR Lahore, has been dismissed. Justice (Retd) Malik Manzoor Hussain, Chairman Customs Appellate Tribunal, heard the case in details and passed the judgment that the appeal, Oiled by the department, is allowed and the order, passed by the earlier forum, is set aside and the appeal, Oiled by the claimant of the bus, is dismissed.

ASo impounds 6,000kg curtain cloth from Shera kot he Customs Preventive AntiSmuggling Organization (ASO), in pursuance of information, intercept a Bedford truck bearing registration no: RIG-6895 loaded with foreign origin 6,000 kilogram curtain and sofa cloth concealed under the bags of vegetables leafs. The market value of the seized cloth is Rs 4 million. Sources told Customs Today that Collector Customs Preventive Faiz Ahmad received information that some smugglers were trying to smuggle a huge quantity of nonduty paid curtain and sofa cloth. He constituted a raiding team under the supervision of Deputy Collector Moazzam Raza which also comprises Superintendent Nasir Minhas, Deputy Superintendent Mansoor Elahi, Inspector Shahid Bhatti, Inspector Javed Iqbal Butt and Inspector Abdul Ghaffar. –CB Report

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As per brief history of the case, on the information, the staff of the Intelligence and Investigation Lahore stopped a bus near Sheikhupura and found foreign origin goods which were being smuggled from Peshawar into Lahore. After completing all the legal formalities, a case was referred to the adjudication collectorate and said to the collectorate to pass the order after hearing the parties whereby goods were released on the payment of duties and taxes levied thereon along with the redemption Oine equal to 20 percent of the assessed value. The bus was released on the payment of redemption Oine of Rs 100000. Feeling dissatisOied with the order, the department Oiled a case before the learned counsel who heard the case in details. The case was adjourned twice however the required record was provided and placed in the Oile.

customs I&I impounds illegally imported tyres LAHORE

m hAYAt

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n anti-smuggling team of the Directorate of Customs Intelligence and Investigation has impounded non-customs paid tyers worth thousands of rupees from a truck which was coming from Rawalpindi. OfOicial sources told Customs Today that the customs authorities intercepted a vehicle bearing registration no: LES/ 1245 and recovered a huge quantity of non-customs paid tyres from a truck. The customs sources said that the truck, which also the non-duty paid, was being driven by a resident of Haripur who was identiOied as Adeel Amjad. The sources said that the market value of the truck loaded with the tyres was estimated as Rs 0.8 million. The tyres were being delivered

collector Adjudication issues show cause notice to m/s Itifaq traders

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ollector of Customs Adjudication Ambreen Ahmed Tarar has issued a show cause notice to owner of M/s Itifaq Traders. According to the details, M/s Itifaq Traders )NTN 4181891) imported 62 consignments of potatoes. During scrutiny of import data it was revealed that the importer had deliberately claimed the beneOits of SRO 549 (I)/2008 dated 11.6.2008 read with SRO 338 (I)/2014 dated 2.5.2014 which was in fact rescined vide SRO 573 (I)/2014 dated 26.6.2014 and the

said goods were chargeable for sales tax @ 17%. It was also reported that the importer with the connivance of clearing agent deliberately deprived the government of its legitimate revenue ofRs10,836,400/-. After detecting the tax evasion Collector Customs Adjudication Ambreen Ahmed Tarar issued show cause notice to the owner of the above said company asking him to appear in person on 30th of August to explain his point of view failing which ex-parte proceedings will take place. –CB Report

in different markets of Lahore. The customs team operated under the supervision of Deputy Director Ali Waheed Khan which seized the NDP tyres. The Custom ASO team after impounding the tyres has registered cases and initiated further investigations. The sources said that customs

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authorities have intensiOied antismuggling operations on the directions of Director Customs Intelligence Investigations Rubab Sikandar and due to effective strategy adopted by Customs Intelligence there is marginable decrease is being witnessed in the smuggling attempts in the region.

fto adjourns case filed by m/s hijveri Int’l he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Oiled by M/s Hijveri International against Regional Tax OfOice-II (RTO-II), Lahore until the next hearing. According to the details, FTO Consultant Tariq Yousaf heard the Complaint Number 257/FTOLHR/0000693/16 of M/s Hijveri International in which the counsel for the appellant argued that RTO-II had failed to release the refund to the appellant of the last three years. He said that the RTO collected excessive tax from the company during the last

three years. He approached the ofOicers concerned many times for issuance of the refunds but the RTO-II ofOicials did not pay the refunds after the passage of reasonable time. Finally, the appellant decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO to clear the refund claims. The counsel further said that the delay in issuance of refund claims put burden on the taxpayers, adding that RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. –CB Report

pRA collects record Rs82.8b in fY17 with 35% growth

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LAHORE

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he Punjab Revenue Authority (PRA) collected record amount of Rs82.8 billion in Oiscal year 2016-17, registering a growth of more than 35 percent. This was stated by PRA Chairman Raheel Ahmed Siddiqui while speak-

ing at the 13th, 14th and 15th balloting of Amanat Scheme (Restaurant Invoice Monitoring System) held under the aegis of PRA. Punjab Minister for Special Education Chauhdry ShaOique Ahmed was the chief guest on the occasion. The PRA chairman said that it gave him a great sense of achievement in informing that the authority in a very short span of almost Oive years had

made signiOicant impact on enhancing the tax revenues for Punjab and a Oine example of this is the continuous success in achievement of its assigned targets. He said the tax base in the corresponding period has also increased to 40,000 which is more than double the number of registered taxpayers when compared with the Oigures of 2014-15. He said PRA is trying its utmost to inculcate a new culture

of voluntary tax compliance in Punjab by introducing a transparent, equitable and fair tax administration system which has enhanced the conOidence of taxpayers. In recent times PRA has invested in introducing new facilitation measures like E-Courts linking Appellate Tribunal and Commissioner Appeals with all Oield ofOices, allowing online Oiling of appeals, and online issuance of orders.


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ollector Gul Rehman of Model Customs Collectorate Peshawar has extended his profound and heartfelt Eid greetings to the employees of the collectorate and trader community (Chambers, importers and clearing agents) of Khyber Pakhtoon Khawa (KP). While talking with Customs Today during an exclusive interview, the collector urged all the ofOicers and staff members of the collectorate to perform their duties with utmost devotion and sincerity for the achievement of revenue goals and best facilitation for traders’ community by maintaining a zero tolerance to inefOiciency and corruption on the part of the staff. The collector said he himself will provide every support to the staff for sorting out any problems and issues regarding the imports and exports and other allied matters connected with the collectorate. He is hopeful of achieving the revenue targets for the current Oinancial year (FY) 2017-18. The collector told CT that, after assuming the charge as collector MCC Peshawar, the Anti-Smuggling Squad (ASO) Peshawar made big seizures in numbers during a very short time which include smuggling of currencies, weapons, narcotics, foreign origin cigarettes and other smuggling goods of Rs100mil-

Thursday, September 7, 2017

lion. Collector MCC Peshawar Gul Rahman said that, after assuming the charge of MCC Peshawar, the ASO also impounded several offending (Vehicles used for carrying smuggling goods) and Non-Duty Paid (NDP) vehicles from different locations under the jurisdiction

of the MCC Peshawar. The collector is hoping for a good cooperation from the trader community of the region as he is also focusing on a good relationship and liaison with other law enforcement agencies (LEAs) for curbing the menace of trafOicking. Telling about the performance of the MCC Peshawar during the initial 30 days of August FY17-18 in comparison with the corresponding period, he said that, during said period, the MCC Peshawar earned Rs115.24million extra revenue of Customs Duty (CD) against the same period of last year FY16-17. During said period, the collectorate generated Rs733.27million as CD during 30 days of August FY17-18 while MCC Peshawar did an Rs681.03million under the same head m h a R gul r during the same period of FY16-17. a f w o a rge a pesh h c c The collector further said the collecc e m th tor d uming e torate of Peshawar received s collec d s n a u r impo , afte t o Rs107.42million extra With Holda S h A t or he said used f war, t ing tax (WHT) during the 1st to s a e h l s c i e (veh nmcc p g o 30th of August FY17-18 against n n i d d an l offen oods) revenue collection under the same t g n g e r n severa i e uggl m diff head. During August of previous FY ng sm les fro c i h carryi f the e 16-17, he added that, during above o v ) n p o i D t c aid (N said period of August FY17-18, the urisdi duty p r the j e d n collectorate collected Rs429.39milu r s a n w o i a esh locat lion of WHT whereas it did mcc p Rs321.97million during the same period of FY16-17 under the head of WHT.

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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

potentials of cottage industry

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akistan could not fully reap the benefits of its strong industrial base which is available in the shape of homegrown cottage industry. Various industrial cities have sprung up across the country without planning and the government support. However, the self-made entrepreneurs do feel the heat of official presence when they are harassed by different government agencies on one pretext or the other. This is a routine in this country and the subject comes under the rubric of administrative failure, mismanagement and corruption. At least 90 percent of the industry is operated by once simple labourers and technicians. Some of the leading businessmen of the country entered the heavy industry with hard work and devotion who had once started their journey from cottage industry. They passed from all odds and hostile events during their travel on the path of business development. Most of the departments and agencies, set up by the government to facilitate the business community, proved their worth nothing more than useless entities. Some even created hurdles in the way of the business community in starch contrast to their national obligations. The people in the departments changed over the period of time, but the routine remained the same. According to economists, the cottage industry has the ability to lead the country to the first world if it fully utilizes its potentials. The country’s exports of surgical and medical instruments stood at $340 million during the fiscal year 2016-17 which is $10 million less than the corresponding period of last year.The exports of cutlery items have grown by 2.52 percent to reach$82.4 million in the fiscal year 2016-17 as compared $80.4 million during the same period of the last year. The exports of chemical and pharmaceutical products have increased by 9.2 percent to reach $878.5 million as compared to $804.3 million during the same period of the last year. Pakistan also exported about 44,250 metric tons of fertilizers worth $10 million during 2016-17 and has great potential to export non-traditional commodities. There is also need to tap African and Asian markets to enhance export of homemade products. Only encouragement from the government is the answer.

pressure on spinning, weaving sectors A

LAHORE

DR AftAB AfZAL

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ccording to All Pakistan Textile Mills Association, the cost of doing business has increased and has adversely affected the spinning and weaving sectors in the country.The high cost of electricity and gas has raised the cost of production, making it difficult for the local textile industry to compete in the international market. The cost of both gas and electricity is as high as 30 percent as compared to the regional competitors, Bangladesh, India, and Vietnam. It claims that a large number of textile units involved in the manufacturing of yarn

and fabrics have been closed down which not only increased unemployment, but also reduced the consumption of local cotton.The textile sector deserves special incentives to export the surplus amount of yarn and fabrics which the country produces every year. The exports of the country are already falling and uncertainty should have to be removed at the earliest. The association has also asked the government to boost cotton-based industries, including spinning and weaving sectors.This will not only facilitate cotton-growers, but will also boost the whole textile chain and ultimately the national economy. The government

should have to revisit its policies for agricultural sector to ensure the achievement of production targets of cash crops. Earlier at one point of time, the country produced 15 million cotton bales which should be further increased to 20 million bales.Unfortunately, the textile package of Rs180 billion announced by the erstwhile prime minister Nawaz Sharif has yet to be implemented and inordinate delay is affecting exports. The organization has also demanded the government to release refunds under duty drawback claimsfrom July 1, 2017 to June 30, 2018 without any condition to encourage the textile sector. The reports of ris-

ing trade deficit are already haunting the national economy which reached an all-time high of $32.5 billion during the last fiscal year. The point to ponder is that why the exports of Bangladesh, India and Vietnam are increasing if there is slump in the international market. It means the flaws are in the country’s textile policy and the international market is ready to absorb textile surplus from Pakistan. When exports recorded the figure as low as $20.45 billion, the imports reached $53 billion mark during the last fiscal year. Unless a comprehensive policies is devised, there is little chances for improvement in the situation.


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ATIR adjourns hearing of petition filed by M/s CMPak Limited ISLAMABAD: Appellate Tribunal Inland Revenue (ATIR) Account Member Dr Ghulam Mujtaba Bhatti dated in office the hearing of a tax matter filed M/s CMPak Limited. The case was remanded back by the Islamabad High Court. ATIR member technical heard M/s CMPak Limited’s matter which was contesting a show cause notice issued by the field offices of the Federal Board of Revenue (FBR). The member was hearing the matter for the first time. According to details, M/s CMPak Limited had challenged recovery of issued to it under the head of outstanding income tax by the LTU, Islamabad. M/s CMPak Limited had submitted the department had issued the demand for the tax year 2012 in head of income tax under provisions of Income Tax Ordinance, 2001.

m/s three Star enterprises adjourned into next date

Thursday September 7, 2017

National

court approves 14-day judicial remand of money laundering accused

LAHORE

SAJID NAWAZ

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ederal Tax Ombudsman (FTO) Consultant Tariq Yousaf has adjourned the hearing of a case filed by M/s Three Star Enterprises against Regional Tax Office-II (RTO-II), Lahore until the next hearing. Same case will be heard in the month of September. According to the details, FTO Consultant heard the case of M/s Three Star Enterprises in which the counsel for the appellant argued that RTO-II had failed to release the refund to the appellant of the last three years. He said that the RTO collected excessive tax from the company during the last three years. He approached the officers concerned many time for issuance of the refunds but the

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RTO-II officials did not pay the refunds after the passage of reasonable time. Finally, the appellant decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO to clear the refund claims. The counsel further said that the delay in issuance of refund claims put burden on the taxpayers, adding that RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO argued that the appellant has not submitted all record in the office on which basis it is claiming for refunds. If appellant provides accurate record, the RTO-II will issue the refunds if any after proper assessment, he added. After hearing the arguments from both sides, consultant adjourned the case until next date for further hearing and directed the parties to appear on said date to present arguments in the case.

LAHORE

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m ImRAN mehAR

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he Special Federal Court of Customs Taxation and Anti-Smuggling has approved a 14-day judicial remand of the accused held in the currencies smuggling case. An accused Faisal Hussain was arrested by the Customs Preventive authorities at the Allama Iqbal International Airport Lahore. The Customs authorities at the Allama Iqbal Airport, during a search of the luggage, found a big quantity of currencies. Accused Faisal Hussain was trying to smuggle the currencies of Rs2million. The customs authorities recovered Dollars, Euros, Pounds and Pakistani currency from his luggage. The customs investigation team presented them before the customs court for getting their physical remand to investigate more on the issue that was approved by the court. After the completion of the remand, the customs team had presented him again before the court and told the court that all the investigation has been executed, so the court can send him to jail.

The customs preventive had apprehended the accused while attempting to smuggle the currencies from Lahore into Europe. The customs investigation team had presented him before the court

of a special judge of the customs taxation and anti-smuggling Shakeel Ahmad and asked for his 14-day judicial remand. The customs had registered a case against the accused and

launched an investigation as well after conOiscating the cell phones that he was trying to smuggle. The customs authorities have registered a case against him under Pakistan Customs Act-1969.

Shc rejects plea filed by Al-Aziz tyre company KARACHI

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m B RANA

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he Sindh High Court (SHC) has dismissed a petition as withdrawn Oiled by Al-Aziz Tyre Companyy, seeking release of its consignments of tyres and tubes seized by customs authorities. A two-member bench, comprising Justice Munib Akhtar and Justice Yousaf Ali Saeed, heard the constitutional petition. During the hearing, counsel for the petitioner stated that petitioner does not wish to proceed the matter, therefore, the court dismissed it as withdrawn. Earlier, counsel for the petitioner stated that he is engaged in the lawful business of import of assorted tyres in nine containers from China and fulfilling all the liabilities properly. According to the

counsel, petitioner imported consignments of tyres and tubes and filed goods declaration according with law, however, officials of the customs department seized the containers alleged that petitioner found in mis-declaration without

shown lawful authorities. Citing Chairman Federal Board of Revenue, Collector of Customs Collectorate Port Muhammad Bin Qasim as respondents, petitioner pleaded the court to declare the act of the customs authorities as

illegal mala fide and arbitrary. He also pleaded the court may direct them to release its consignments immediately and restrain them from taking any coercive action against the petitioner till final order of this petition.


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Asim Majid assigned additional charge of Commissioner (Zone-I) Thursday September 7, 2017

National Jehan takes charge as Addl collector after promotion to BS-19

ISLAMABAD: Asim Majid Khan, a BS-20 officer of Inland Revenue Service, has been assigned the “additional charge” of the post of Commissioner (Zone-I), Large Taxpayers Unit, Islamabad. The officer, presently posted as Commissioner-IR (IP/TFD/HRM), Large Taxpayers Unit, Islamabad, has been given the additional charge of the above-said post during the leave period of Zafar Iqbal Khan (IRS/BS-20) with effect from August 7, 2017 to September 15, 2017.

member (Legal) Dr tariq given look-after charge of I&I Dg

ISLAMABAD

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ISLAMABAD

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ehan Bahadar, a Pakistan Customs Service officer, has assumed the charge as Additional Collector after his promotion to BS19. Bahadar, on his promotion vide Board’s Notification No. 2204-CII/2017 dated 17.08.2017 and 2242C-I/2017 dated 18.08.2017, relinquished the charge of the post of Deputy Collector (BS-18), Collectorate of Customs (Adjudication), Islamabad on August 21 and took the charge of the post of Additional Collector (BS-19), Collectorate of Customs (Adjudication), Islamabad on the same date. Meanwhile, Performance allowance in respect of Arbab Qaisar Hamid, a Pakistan Customs Service officer of BS-18, has been restored. The performance allowance (equivalent to 100 per cent of basic pay) of the officer, presently posted as Second Secretary at Federal Board of Revenue (HQ), Islamabad.

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karachi I&I-IR Addl Director Arif promoted to BS-19 uhammad Arif, an officer of Inland Revenue Service, has taken the charge as Additional Director of Directorate of Intelligence & Investigation (IR), Karachi, on his promotion to BS-19. The officer, in pursuance of Board’s Notification No. 2205IR-I/2017 dated 17.08.2017, relinquished the charge of the post of Additional Director (OPS) (BS18), Directorate of Intelligence & Investigation (IR), Karachi with effect from August 17 and took the charge of the post of Additional Director (BS-19), Directorate of Intelligence & Investigation (IR), Karachi, on the same date. –CB Report

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r Muhammad Tariq Masood, a BS-20 ofOicer of Inland Revenue Service, has been assigned the look-after charge of the post of Director General, Directorate General of Intelligence & Investigation-IR, Islamabad. The ofOicer, presently posted as Member (OPS) (Legal) at Federal Board of Revenue (HQ), Islamabad, has been given the look-after charge of the above-said post during the leave period of Shad Muhammad (IRS/BS-21) with effect from August 26 to September 9. Meanwhile, Dr Abdul Rehman Rind, a BS-20 ofOicer of Inland Revenue Service, has taken the charge as Commissioner-IR (Chenab Zone).

The ofOicer, in pursuance of Board’s NotiOication No. 2119-IR-I/2017, dated 08.08.2017, relinquished the

charge of the post of CommissionerIR (Zone-IV), Large Taxpayers UnitII, Karachi with effect from August 8

and assumed the charge of the post of Commissioner-IR (Chenab Zone), Regional Tax OfOice.

customs North Region surpasses revenue target by Rs154.39m T

ISLAMABAD

tARIQ DeRYA

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he Customs North Region (Collectorates of Islamabad, Peshawar, Samberial and Gilgit baltistan) has surpassed its assigned target by generating extra revenue of Rs154.39million during 30 days of August. The North Region received Rs3267.13million revenue under the same head during 30 days of August FY17-18 while North was allocated revenue collection target of Rs.3112.74million under the same head. According to details given by sources of North Region that performance of the North Region looks satisfactory under all the tax heads during 30 days of August FY2017-18. During above said period, the Customs Collectorate Islamabad collected Rs1381.56million against

the earmarked target of Rs1167.00million of all the taxes. During above said period, the Customs Collectorate of Peshawar earned the revenue of

Rs1652.72million as all taxes while it was assigned the target of Rs1689.75million. The sources told CT that Customs Collectorate of Samberial

was rewarded worth Rs222.93million rebate against the allocated target of Rs-178.07million for 30 days of August FY1718 under the head of all taxes.


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Dr Jawwad Owais assigned look-after charge of DGTR Karachi Customs ISLAMABAD: Dr Jawwad Owais Agha, a Pakistan Customs Service officer of BS-21, has been assigned look-after charge of the post of Director General, Directorate General of Training & Research (Customs), Karachi. The officer, presently posted as Director General, Directorate General of Input Output Coefficient Organization (South), Karachi, was given look-after the charge of the above-said post in addition to his own duties till the posting of a regular incumbent.

hyderabad customs collects Rs692.218m revenue HYDERABAD

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he Model Customs Collectorate Hyderabad has received Rs692.218million revenue during the last week of August 2017-18. Hyderabad collectorate has generated a Customs Duty of Rs124.935million, Sales Tax of Rs552.703million, Special Federal Excise Duty (FED) on Imports Rs1.750million and With Holding Tax of Rs12.830million during the last week of August 2017-18. The major tax sources include unit of Sukkur (OMC & Rima cooking oil) SWH, Sukkur Directorate Sukkur Dry Port, Hyderabad Bonded Warehouse, State Ware House, Export Hyderabad and KPR (Zero Point) Huffaz Seamless Pipe Industries, Crescent Steel, Omni Polymer Industries and Pakistan State Oil. The Model Customs Collec-

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torate Hyderabad, Anti-Smuggling Organization (ASO), also impounded NonDuty-Paid vehicles including three oil tankers filled with110,000 liter of smuggling Iranian High Speed Diesel I (HSD), foreign origin Non-Duty-Paid cigarettes of different brands including Pine Light of Korea, Reds Virgin of England, foreign origin cloths and other contraband items. The computer sets, CPUs of Dell, hard discs, different GB DVDs, laptops and other items worth million of rupees were also seized during the two months of June/July 2017-18. Under the supervision of Hyderabad Customs Collector Akhlaq Ahmad Khattaq, Deputy Collector Dry Port Zam Zam Aman, Principal Appraiser Mashuq Ali Panhwar, Appraiser Ashir and Superintendent Statistical Revenue played an important role in the revenue collection, officials said. They added that the anti-smuggling campaign is in full swing in the region following the direction of the Federal Board of Revenue (FBR) and Collector Akhlaq Ahmad Khattaq in order to enhance the revenue generation.

National

fto adjourns appeal’s hearing of proprietor Sabir timber market against Rto-II

customs Adjudication serves notice on m/s chase trading ISLAMABAD

m fAIZAN

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ollector Customs Adjudication Islamabad Ihsan Ali Shah has issued a show cause notice to M/s Chase Trading and Technology, Suite No: 102, Green Trust Tower, Jinnah Avenue, Blue Area, Islamabad, under section 180 of the Customs Act-1969 calling upon the company to show cause as to why 25 imported Access Gateways seized by the Directorate General Customs Intelligence and Investigation should not be confiscated and why Rs171.90million evaded by them in duties and taxes on these 25 and previous 32 Access Gateways should not be recovered and why penal action should not be taken against them under section 156 (1) (9) (14), 14A and 178 of the Customs Act-1969. It was reported by Deputy Director Customs Intelligence and Investigation FBR Rawalpindi Afzal Wattoo that Nadeem Aslam Khan, proprietor and CEO of M/s chase Trading Technology, imported communication switches and declared their unit’s value at $20 per unit and cleared the goods. But we found that imported goods were actually 25 Access Gateways and, according to the invoice No: HSW-SJA, carried unit value of $250 per unit.

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LAHORE

SAJID NAWAZ

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he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Oiled by a Proprietor Sabir Timber Market against the Regional Tax OfOice-II (RTO-II) Lahore until the next date. FTO Consultant Tariq Yousaf heard the case of Sabir Hussain, Proprietor Sabir Timber Market, in which counsel for the appellant argued that the RTO has not released the refund to the appellant for the last three years. He said the RTO has been collecting excessive taxes from the company for the last three years. The company approached the ofOicer concerned many times for release of the refunds but the department did not entertain his request, even after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking intervention in this case. The counsel appealed to the FTO to order the RTOII to clear the refund claims. The counsel further said the delay in the release of refunds puts the burden on the taxpayer, adding that

Thursday September 7, 2017

the RTO should audit the case and release the extra amount collected from the taxpayer. On the other hand, counsel for RTO argued that the appellant has not submitted all the record to the ofOice on which basis it is claiming for refunds. If appellant provides the accurate record, the RTO will release refunds after a proper assessment, he added. After hearing the arguments from both sides, consultant Tariq Yousaf postponed the case until next date for further hearing and ordered the

parties to appear on the said date to present arguments in the case. Meanwhile, The Federal Tax Ombudsman (FTO) has postponed the hearing of a case Oiled by M/s AlHamd Traders against Regional Tax OfOice-II (RTO-II), Lahore until the next hearing. According to the details, FTO Consultant Tariq Yousaf heard the appeal in which the counsel for the appellant argued that RTO-II had failed to release the refund to the appellant of the last three years.

Sukkur customs preventive impounds NDp toyota hiace

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HYDERABAD

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he Anti-Smuggling Organization (ASO), Customs Preventive Sukkur, has impounded a foreign origin non-duty-paid Toyota Hiace, Model 200, during an action at Airport Road Sukkur. The value of the vehicle is Rs2million involving duties and taxes of Rs2.5million during a week ago of August 2017-18. Collector Akhlaq Ahmad Khattaq had directed that effective measures be taken for checking the smuggling in the region. Sources told Customs Today that the Cus-

toms Authorities received a tip-off regarding some smuggling attempts. He formed an ASO team un-

der the supervision of customs officers. The team also included Inspectors, Sepoys, a Driver and

other staff. The team intercepted a vehicle Toyota Hiace with registration No: JF.7782, model 2005, near Abad Airport Road, Sukkur. The officials asked the driver to produce documents regarding the legal import and lawful possession of the vehicle but he could not show any of them. So the officials impounded the vehicle following the customs bylaws. After making a seizure report, the team deposited the impounded Toyota Hiace into the Sukkur State Warehouse. Officials said vigilance has been enhanced against the smuggling of vehicles on roads.


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World Customs

Saudi banking outlook to improve in Q2 of 2017

RIYADH: Confidence in the outlook for Saudi Arabia’s banking sector is gaining momentum as most leading banks have shown resilience in balance sheet growth and profitability while improving asset quality during the first half of 2017. Banking sector analysts expect the outlook is set further brighten in the second half of the year on improved net interest margins (NIM), lower cost of funds, stronger loan growth and lower impairments. Bank of America Merrill Lynch (BoAML) analysts expect to see an improved outlook for Saudi banks in to the second half of 2017 and beyond on themes such as NIM expansion accelerating on the back of the three US Federal Reserve rate hikes observed since December 2016.

Thursday September 7, 2017

more than 100 endangered pangolins seized in thailand

Russia to give $70 million loan to Belarus MOSCOW

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BANGKOK

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hai customs officials have seized more than 100 live pangolins and 450 kilograms (990 pounds) of scales from the endangered animal in their latest action against illegal wildlife trafficking, the customs department chief said. The animals and animal parts were found Wednesday in two pickup trucks after authorities received a tip that they had been smuggled from Malaysia, according to Customs Department DirectorGeneral Kulit Sombatsiri. Pangolin scales are used in traditional Chinese medicine and contain keratin, a protein also found in rhino horn, though there is no scientiOic proof that they provide any medicinal value. Pangolin meat is considered a delicacy in Vietnam and some

Iran’s foreign trade up 5% (mar-Aug 2017) ran’s non-oil foreign trade during the first five months of the current Iranian year (started March 21) stood at $36.63 billion, indicating a 5.34% rise compared with last year’s corresponding period. According to the latest report by the Islamic Republic of Iran Customs Administration, non-oil exports during the period hit 14.22 million tons worth $17.19 billion, indicating a 4.95% decline year-on-year. Non-oil imports amounted to 48.04 million tons worth $19.44 billion, up 16.49% YOY. Petrochemicals ($6 billion), followed by gas condensates ($2.92 billion), polyethylene ($652 million), liquefied propane ($576 million), light crude oil excluding gasoline ($555 million) and methanol ($498 million) were the main exported commodities. –CB Report

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parts of China. Demand for pangolin scales and meat has led to rampant poaching that is decimating populations across Asia. More than 1 million pangolins have been poached in the past decade, threatening the creature with extinction, according to the International Union for the Conservation of Nature. A U.N. wildlife conference last year approved a ban on trade in all eight

species of Asian and African pangolins. In February, almost three tons of scales from endangered African pangolins, hidden in sacks, were seized at Bangkok’s main airport. In May, seven tons of pangolin scales were confiscated in Hong Kong. Kulit said his department has seized more than 2.9 tons of pangolin-related items this year worth more than 29 million baht ($870,000).

Anti-tax avoidance measures under fire from employers, tax advisers

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he caretaker government may make the Netherlands a less attractive location for international business because of changes to the corporate tax system, the employers’ organisation VNO-NCW and tax advisers have warned, the Financieele Dagblad said on Monday. The employers and Dutch Order of Tax Advisors say the government is choosing the wrong parts of a European directive to tackle tax avoidance to incorporate

into domestic law. They made their comments in response to the online consultation process on a new bill that concluded last week. The new rules, incorporating the EU’s anti-tax avoidance directive into Dutch legislation are supposed to come into effect by the beginning of 2019. The aim is to respond to the growing public and political concern about tax avoidance and harmful tax competition between countries, the paper said. –CB Report

ussia is to give Belarus a loan of $70 million, designed to repay Minsk’s debt to Russia, as well as to the Eurasian Fund for Stabilization and Development. The corresponding order was published on August 24 on the webpage law.by. The Belarusian side is to repay the loan twice a year (April 15 and October 15) for 10 years. The Oirst instalment will be made in the spring of 2018. Moscow will give Minsk the necessary amount in Roubles, but the loan will be paid back in dollars. Ex-chairman of the Supreme Council of Belarus, Stanislav Shushkevich, has warned that further allocation of loans will lead to a default in Belarus. “He (the president of Belarus, Alexander Lukashenko), is driving Belarus into great debt. This will

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probably lead to a default. I cannot give him advice, because he does not recognize reasonable advice. He has been given advice for a long time as to how to modernize the economy, but he is threatened with losing power. With this loan, Russia is saving the Belarusian dictator,” Shushkevich said, adding that while he understood the necessity to allocate a loan for Belarus, which will not suffer if it is used wisely, “Belarus will pay it for a very long time”. In the Oirst four months of 2017, Belarus paid $120 million in repayment of the public debt. At the same time, it is expected that in 2017 alone, Minsk will return $741 million. According to the balance of payments, CBR (Central Bank of Russia) version, Belarus owes Russia about $6.4 billion. Russia remains a key partner for Belarus from a trade, Oinancing and political perspective. The gas price dispute with Russia, which echoes various energy disputes in the 2000s, remains unresolved, thus creating uncertainty for the 2017 economic and Oinancial outlook.

Saudi imports arrive by sea in 2016

he sea has acquired the largest chunk of the Kingdom’s imports in 2016 with about 85 percent of them arriving by the water passages, local daily Al-Watan reported on Sunday quoting a report by the General Authority for Statistics (GAS). The report said the sea imports increased by about one percent as compared with 2015 when they were about 84 percent. The report noted a drop in the land imports which were only about 14 percent from the 15 percent in the previous year. The imports coming by air showed a slight increase from 0.5 in 2015 to 0.71 in 2016. It further said the sea imports

weighed 65.5 million tons, of which about 36 percent (more than 23.8 million tons) arrived via Jeddah Islamic Seaport, which is the Kingdom’s main seaport on the Red Sea. King Abdul Aziz Seaport on the Arabian Gulf in Dammam occupied second place receiving about 33 percent of the imports, weighing more than 21.5 million tons, while Al-Jubail industrial seaport handled about 15 percent of the imports, weighing about 9.5 million tons. The report noted a drop in the quantities of land imports last year which were 10.6 million tons (13.98 percent) from 12.9 million tons (15.34 percent) in 2015. –CB Report

china’s economy continues to enjoy strong growth

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BEIJING

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hina continues to enjoy strong growth which is projected at 6.7 percent for 2017, and shows potential to sustain the increasing momentum over the medium term, said International Monetary Fund (IMF) in a recent

annual report. Key data released by China’s State Statistics Bureau in July and August reflect the country has maintained smooth economic development with stable prices and employment in the first half of 2017. The economy is performing reasonably and stably. According to official figures, the first six months witnessed a year-onyear GDP increase of 6.9 percent,

growing 0.2 percent faster, compared with the same period last year. Given the data falling within the range of 6.7-6.9 percent in eight straight quarters, China is improving its stability. The employment situation is optimized. Against the background of a proactive policies aiming to promote service sector, public entrepreneur and innovation, 8.55 million new

jobs have been created in urban areas during the period, a year-overyear increase by 200,000, said Mao Shengyong, a spokesman of the statistics bureau. Mao added that the urban surveyed unemployment rate remained low, which dropped around 5.1 percent this July, down from a year earlier. The general price level is stabilized. In the first couple of months.


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Five ships take berth at Port Qasim KARACHI: Five ships MSC Chicago, Prosper, Chemroad Lily, Stolt Sakura and Iris carrying containers, Edible oil and Soya Bean were arranged berthing at Qasim International Container Terminal, Multi Purpose Terminal, Liquid Cargo Terminal and FAP Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA) here on Tuesday. Meanwhile seven more ships with Containers, General Cargo and Chemicals also arrived at outer anchorage of Port Qasim during last 24 hours. High side berth occupancy was recorded at the port at over 66% on Monday where a total of eleven ships namely, MSC Pina, Prosper, MSC Chicago, E-Trader, Beks, Cenk, Pacific Talent, Tom Val Borg, Iris, Gaz Niaz.

port Isabel facility to receive overhaul ven the smallest Texas port puts down a big footprint. The Port Isabel-San Benito Navigation District port facility has an annual economic impact estimated at $85.5 million. Officials hope to improve on those dollar numbers thanks to a new $1 million federal grant announced yesterday which they say will jumpstart a major facility renovation. “Our ports are very important, and in a lot of ways, they are a very large part of the economic drivers of our communities,” said Jorge Ayala, regional director of the Economic Development Administration. “Certainly in Texas, all of our ports are huge economic drivers and Port Isabel is one of those. “So even though it’s small by port standards, the impact is huge,” Ayala added. Ayala said the renovations at the facility would result in an estimated additional 200 jobs, and would help retain another

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350 jobs. The grant from the U.S. Commerce Department agency was won competitively among infrastructure projects in several states. The Port Isabel facility will partially match the grant with $428,527 of its own money. What the port will do with the new funding is raze the old Lone Star Hatchery built in the 1980s to incubate tiny shrimp for fattening at the shrimp farm in Arroyo City. Both shrimp facilities have long been defunct. Between the hatchery land and adjoining land the port also owns, 14 acres will be made available for development for tenants, said Port Director/General Manager Steve Bearden. The funding also will allow for a new roadway to be built through the facility which can handle heavier truckloads, he said. –CB Report

Ports & Shipping

‘gwadar port to be fully operational in four years’ BEIJING

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akistan Ambassador to China, Masood Khalid Tuesday said the development work is in progress on Gwadar port and expressed the conOidence that it would be fully operational in three to four years. A power plant is being set up there to provide electricity to the city and to the port and existing airport and highways are being expanded and built in Gwadar. “In three to four years, Gwadar will become a different city, and Gwadar port will be fully operational,” he said during an exclusive interview with China.org.cn. “In fact, ships have now started arriving and they are bringing cargo and equipment for the work on the port. All in all the progress is good. We need to work faster on the airport. We need the airport as soon as possible, and the roads,” he added. On how would Gwadar contribute to the region’s economy and

security, he said Gwadar is an important port in terms of its location and it is very close to the Persian Gulf and the Middle East, and it will link up with China. “We already have a highway to China, and we are working on upgrading and improving it so that it can become the main artery for trade and business between Pakistan and China,” he added. Ambassador Khalid said the idea is that exports from China pass along this road, reach Gwadar, and

are then transshipped to Africa and Europe. In terms of distance and cost, Gwadar will be very competitive, adding, “I am conOident that it will gain momentum in the years to come.” He said the port will serve the commercial and business interests not only of Pakistan but also of China and of the other countries in the region.”The whole of Central Asia is landlocked, and these countries need access to the seas for commerce and trade – we are in the ideal location to provide this.”

Thursday September 7, 2017

port of Los Angeles expanding cargo data pilot program he Port of Los Angeles and GE Transportation have agreed to extend a digital data pilot program across all of the port’s terminals designed to improve cargo movement by streamlining information access. The port’s Harbor Commission voted to extend a contract with GE last week for up to five years and an additional $12 million, extending a pilot program contract approved in November for one year with $1.4 million in funding. “The GE portal is an investment in the long-term growth of the Port of Los Angeles and tells our stakeholders and customers that we take seriously our responsibility to find new ways to drive efficiencies and optimization,” Gene Seroka, executive director of the Port of Los Angeles, said in a statement. The port is the first in the United States to have such a digitized system of data collection to create better access to information on cargo movement, such as when and where containers are arriving among trucking companies and other stakeholders. –CB Report

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hutchison ports in Basra port management deal WASHINGTON

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ong Kong-based global port operator Hutchison Ports is making inroads into the Middle East market with a deal to manage the Port of Basra in Iraq. The deal will see Hutchison team up with NAWAH Port Management (NPM), the port management arm of the Pritzker Family Business Interests vehicle NAWAH (North America Western Asia Holdings). Hutchison has agreed to manage existing and future operations at Port of Basra in southern Iraq. NPM, was launched in partnership with Basra’s Moosawi family in 2012 to establish a modern container berth at the port. Hutchison will assume oversight of day-today commercial and operational activities at NPM, operating under the name of Hutchison Ports Basra.

NPM’s terminal is along the Shatt Al Arab waterway in Iraq. It services the shipping needs for a full spectrum of customers across Iraq – from large, multinational companies to local Iraqi merchants. “We view NPM’s operations at the Port of Basra as an integral piece of our expanding Middle East strategy and are excited about the opportunities this partnership creates,” said Andy Tsoi, Hutchison Ports’ Middle East and Africa md. “We believe strongly in the growth story of Basra, Iraq, and the Middle East as a whole and are delighted to have the opportunity to participate in and support the growth of the business over the long term.” NPM ceo Eric Clark said: “Hutchison Ports has an exceptional team and a proven track record of delivering value to its customers, employees and the regions in which it invests. We are delighted for the opportunity to partner with one of

the leaders in the industry – a company which shares our vision of NPM as both a unique maritime asset in southern Iraq as well as strategic platform in the epicenter of one of the fastest growing regions in the world.” Advisors on the deal were Eversheds for Hutchison Ports and Latham & Watkins for the PFBI. No deal value was disclosed. Meanwhile, OfOicials at the Visakhapatnam Port have urged Nepali traders to make more use of the seaport in the Indian state of Andhra Pradesh citing cost of ferrying goods from the port is lower. The port saw departure of Oirst cargo train to Nepal on June 6. Another train carrying third-country goods is likely to leave for Nepal in the end of July, while the third will most likely depart the port by the end of August, according to Kalyana Chakravarthy, senior station manager at Visakhapatnam Port Trust, said. The frequency at which cargo trains are leaving the port

for Nepal indicates underutilisation of the port. Nepal currently heavily relies on Haldia Port near Kolkata to export and import goods to and from third countries. One of the attractions of this port is the distance. It is located at a distance of around 704 km from Nepal. Visakhapatnam Port, on the other hand, is located at a distance of around 1,436 km from Nepal. Yet the drawback of Haldia Port is that it cannot handle larger cargo vessels because of its shallow water. So, cargoes have to be transferred to smaller vessels in Singapore or Colombo, Sri Lanka, before they are shipped to Kolkata. This increases the cost of trading. Although the Visakhapatnam Port is located quite far away from Nepal, it offers lower sea freight costs, and freight forwarders do not have to pay various charges such as detention cost, demurrage cost and many other formal and informal charges, port ofOicials said.


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Seminar on importance of tax culture MULTAN: Muhammad Nawaz Sharif University of Agriculture (MNSUA) arranged a seminar on the importance of tax culture in society and filing of tax returns. Teachers, university employees and students attended the event in large numbers. Deputy Treasurer Muhammad Asif Nawaz delivered a lecture on the importance of paying taxes and benefits of filing tax returns. The participants were educated about online filing of returns. Dean Faculty of Agriculture Professor Dr Ishtiaq Ahmed Rajwana, Registrar Jamia Rafique Ahmed Farooqi, Director External Linkage Prof Dr Shafqat Saeed, Dr Ammar Matloob, Ms Robina Ahmed and others also attended the seminar.

Thursday September 7, 2017

Business

musharraf cyan formally joins pIA as ceo KARACHI

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r Musharraf Rasool Cyan, who was appointed as chief executive ofOicer of Pakistan International Airlines (PIA) by former prime minister Nawaz Sharif, has formally joined the national carrier. “He is the first CEO after PIAC’s conversion into a public limited company in December 2016,” a press statement from the airlines said. The position for a full-time CEO had been vacant for a while with stop-gap arrangements being made sporadically. Chief Financial Officer Nayyar

Interest free agri loans provided to farmers FAISALABAD

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Hayat remained the acting CEO since April 2017 when the national carrier sacked Bernd Hildenbrand, a German national, on charges of corruption. The statement added Dr Cyan, who is a former bureau-

ecNec approves power infrastructure, health, road projects

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nterest free agriculture loans of Rs580 million have been provided to 7173 farmers of the district through E credit scheme under CM Punjab Kissan Package. This was stated by Deputy Commissioner Salman in a meeting of District Agriculture Advisory Committee held here on Sunday. Director Agriculture Ch. Abdul Hameed briefed the meeting. The meeting was informed that the agriculture loan of Rs.193 million had been provided to 1352 farmers by the ZTBL, Rs 100 million to 809 million by National Bank of Pakistan.

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crat and holds a PhD in economics from Georgia State University, brings with him an experience of more than 26 years in public sector management, service reforms, project planning and economic de-

velopment programs. “A professional technocrat with experience of working in various capacities with government of Pakistan,” it said. His doctoral studies in economics focused on pricing, consumer behavior, taxation, investment in public assets, quantitative methods and analytical tools for efficiency and effectiveness. Prior to his PhD, he did his masters in development management from University College London. He stood first in the nationwide competitive exam for Civil Service of Pakistan and received prestigious gold medals in management courses in the Civil Service Academy. He has also been trained in Aviation Management from Embry-Riddle University, Florida, USA, the statement added.

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ISLAMABAD

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xecutive Committee of the National Economic Council (ECNEC), which met here at the PM OfOice with Prime Minister Shahid Khaqan Abbasi in chair approved various development projects including the power infrastructure, health and roads projects. The ECNEC approved following development projects:-1) Construction of new 132 KV Grid Station and transmission lines project by SEPCO

(Sukkur Electric Power Company) at a total rationalized cost of Rs 12.699 billion. 2) Distribution of Power Project aimed at expanding distribution network of SEPCO to meet growing demands in districts of Sukkur, Jacobabad, Shikarpur, Larkana, Ghotki, Qamber, Kandhkot, Dadu, Naushero Feroze, Khairpur, Benazirabad and Jamshoro at a total rationalized cost of Rs 3.825 billion. 3) Energy Loss Reduction Project to reduce technical losses resulting from the distribution conductors and equipment due to poor power

factor in various districts of Sindh costing Rs 10.514 billion. The project includes construction of new 11 KV lines, re-conducting of 11 KV lines, installation of 37 capacitors, replacement of overloaded transformers, construction of new transformers sub-stations, energy meters and replacement of earthing. 4) Expansion of scope and coverage of Prime Minister’s National Health Programme at a total rationalized cost of Rs 8.072 billion. 5) Construction of Chitral – Garam Chashma – Doraha Pass Road at a total rationalized cost of Rs 8.314 billion.

five held for selling govt-owned medicines MULTAN

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ederal Invetigation Agency (FIA) Multan, in collaboration with health department arrested five persons for selling governmentowned medicines and recovered medicines worth Rs 4 million from their possession. Addressing a press conference here on Sunday, Deputy Director Shehyar Babar said that three alleged outlaws were employees of district health department and they used to sell medicines in Peshawar. During investigation, the accused confessed that they had sold medicines worth Rs 27 million during last year. The DD said that accused were involved in selling Ciprofloxacin, Amoxil, Septran, Gynosporin and many other medicines. He further informed that FIA was holding further inquiry into the incident and hoped that there would be more arrests in near future. Two accused- Ishtiaq Bhatti and Nasir Dogar, were incharges of government medicine stores of district Multan and Bahawalpur. The other three accused were identified as Waqar Khan Khakwani, Aakif Rasheed and Muhammad Tahir Khawaja, said Deputy Director FIA Shehyar Babar. Drug Controller Asad, Drug Inspector Rao Sajid and SHO Mumtaz Qureshi were also present on the occasion.

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pak-thailand agree to discuss final ftA, offer list by oct 15 ISLAMABAD

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akistan and Thailand have agreed to present the complete offer list on Free Trade Agreement (FTA) on October 15, aiming at signing the final agreement in this regard. Both side have agreed upon for dialogue on total tariff line and also willing to Mutual Recogni-

tion Agreement (MRA) for harmonizing the standards and products, senior official of Ministry of Commerce said. Pakistan also wants concession on 100 products from Thailand granted to ASEAN countries, he said. The final decision on Pak-Thailand FTA would be made during the 9th round of talks between the two countries scheduled on November 14-15 in Thailand. Both sides had ex-

changed the final offer lists of items for free trade, including automobile and textile sectors for removing the reservations of the business communities. During the 9th round, he said, talks would also be held on the text of agreement, tariff reduction modalities, complete request lists from both side and offer lists. The official said Thailand had comparative advantage in around 1000 commodities,

mainly electrical and electronic appliances, machinery and components and automobiles and parts. He added that similarly, Pakistan had relative advantages in some 684 commodities including cotton yarn and woven textiles, readymade garments, leather products, surgical instruments and sports goods. Talking about the FTA with China, the official said negotiations on second phase of the FTA

with China would be held from September 13 to 14 in China headed by Secretary Commerce Younas Dhaga. He, however, added that Pakistan was desirous to have duty relaxation on 45 products before launching the phase-II. “We demanded unilateral relaxation on 45 different product for coming three years before signing Phase-II of FTA.” the official said.


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Iran’s aquatic exportations increased by 66% TEHRAN: According to the Minister of Agriculture Mahmoud Hojjati, aquatic exports have increased by 66 percent in the past four months. Minister of Agriculture Mahmoud Hojjati announced Tuesday that a 1.5 billion dollar budget has been dedicated to boost employment in rural areas and in this regard pointed to the fact that aquatic exports have seen between 65 to 66 percent growth in the past four months. During the 5th National Fall Cultivation Assembly, Mahmoud Hojjati stated that between 25,000 and 27,000 tons of shrimp have been cultivated this year, while the production of cultivated shrimp in 2012 was amounted to 10,000 tons only. “Moreover, the export of aquatic animals has increased by 66 percent in the past four months” he added. Talking about the country’s dairy exports, Hojjati said “within the past four months, dairy exports have seen about 27 to 28 percent growth and the necessary measures have been taken to further improve this line of business.”

Dubai chamber holds VAt workshop DUBAI

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Thursday September 7, 2017

Chambers

LccI, Spfc to promote investment in forestry sector

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he Dubai Chamber of Commerce and Industry recently organised and hosted a workshop in cooperation with the UAE’s Federal Tax Authority (FTA), which aimed to familiarise importers and exporters in Dubai with the forthcoming valueadded tax (VAT). The workshop also highlighted mandatory registration procedures associated with the new tax. The second and final workshop, hosted at the Chamber’s premises, was attended by over 500 participants representing import and export businesses in the emirate. The event is part of the second phase of the joint effort by the UAE Ministry of Finance and the FTA’s tax awareness programme, which aims is to keep the

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UAE’s business community informed on new tax laws and compliance procedures. Khalid Ali Al Bustani, director general of the Federal Tax Authority, said: “The workshops provide an ideal platform to raise awareness and engage the business community about the compliance requirements and procedures that need to be completed as they prepare for VAT. In addition, these events aim to enhance businesses’ understanding of how the tax system works, as well as the objective behind introducing it in the UAE.” He also explained that importers and exporters are a vital part of the UAE’s economy that stand to play a greater role in the country’s sustainable development going forward. He described the registration process for VAT as simple, efficient, and transparent, and added that the tax procedures fall in line with the best international standards.

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he Lahore Chamber of Commerce and Industry (LCCI) and South Punjab Forest Company (SPFC) will make join efforts to promote investment in forestry sector of South Punjab and will also highlight the forestry opportunities offered by the Government of Punjab. The consensus was made at a consultative session here at the Lahore Chamber of Commerce & Industry. The LCCI President Abdul Basit, Senior Vice President Amjad Ali Jawa, Chief Executive OfOicer of SPFC Tahir Rasheed, Moazzam Rasheed and Tehmina Saeed Chaudhry spoke on the occasion. LCCI and SPFC also signed a Memorandum of Understanding (MOU) in this regard. Tahir Rasheed, CEO, SPFC, briefed Abdul Basit, President, LCCI about SPFC saying that it’s a Punjab Government entity, established as a Public Sector Company, which aims to stimulate private sector investment alongside public money to reduce deforestation in Punjab and to

combine forest conservation with sustainable economic development. He said that that SPFC is offering 99,077 acres for forestation and range management to investor for 15 years. He further stated that the land exists in Oive districts of South Punjab which include Bahawalpur, Rahim Yar Khan, Rajanpur, Muzaffargarh and D.G. Khan. He said that this initiative will beneOit the local economy by creating over 15,000 jobs and most importantly provide sustainably farmed wood to the

wood-based industry, eventually reducing logging pressure on the natural forests of Pakistan. Abdul Basit,President, LCCI, urged the SPFC officials to launch an awareness campaign , so that the concept of sustainable forestry can be promoted. He also said, ‘There’s a need to educate people regarding this concept and media can play an important role by raising awareness regarding it.’ “We have to recognize that forestry is an integral feature of

fpccI for taking steps to empower women ISLAMABAD

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resident FPCCI Zubair Tufail has said that women empowerment is central to the national development, therefore, government, as well as private sector, should do their best to achieve this goal. Women empowerment not only benefits them but also help men, women, society, community and the overall economy of a country, he said. Zubair Tufail said this while speaking at the first-ever, “Round-Table Discussion on Challenges, Suggestions, and Solutions,” arranged by Islamabad Women Chamber of Commerce and Industry in which majority of the women chambers from around the country participated. Zubair Tufail said that govern-

ment has taken laudable steps for women empowerment but a lot is to be done as women are being denied their rights all around the globe which in turn compromises growth. He said that this roundtable will go a long way in the resolution of issues as there is a communication gap and lack of interaction among the various women chambers of Pakistan. The decision has been taken to establish a body titled All Pakistan Women Chambers to boost cooperation among women chambers. Speaking at the occasion, Senator Mian Muhammad Ateeq said that increasing responsibilities and lesser opportunities along with narrow exposure have always been a great challenge for Pakistani women. The issue of women empowerment has always been of supreme importance to opinion leaders, reformers, social analysts and political thinkers but women are

yet to be allowed to live with dignity, he added. The Senator said that women can play a marvelous role in the economic development of Pakistan if empowered as today’s women are educated, conOident and willing to work. Just a slight motivation, support, and resources can make them do wonders. It’s time to recognize that enhanced women participation in modern society is mandatory in order to ensure a prosperous economy, he demanded. Senator Ateeq said that government should help businesswomen get affordable loans, network, have exposure and coordinate while every women’s chamber should be given a plot so that a building can be established there. At the occasion, Samina Fazil, founder President, IWCCI said that this discussion was held to bring women chambers closer so that they unite their strengths to ensure prosperity.

sustainable economic development. It should be the focus policy corridors for generating new economic opportunities”, Abdul Basit said adding that by developing forestry as a commercially viable sector, the country can make the agriculture sector stable and valuable for economy. SPFC aims to achieve SDGs Goal 15 ‘Life on land’, which focuses on managing forests sustainably, restoring degraded lands and combating desertiOication etc.

Lahore chamber hails LDA for helping industry ahore Chamber of Commerce and Industry (LCCI) on Tuesday appreciated Lahore Development Authority (LDA) Director General Zahid Zaman and Chief Town Planner Khalid Mehmood Sheikh for their untiring efforts to save industry located in various parts of the city. LCCI President Abdul Basit said that shifting of industrial units from different parts of the city was a big challenge for the business community. However, friendly approach of Punjab Chief Minister Shehbaz Sharif towards the business community has helped resolved this important issue, he added. Abdul Basit hoped that other departments would get inspiration from the LDA and promote partnership between public and private sector. –CB Report

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FBR says 5% WHT deduction on air ticket adjustable KARACHI: The Federal Board of Revenue (FBR) has said that five percent withholding tax deduction on purchase of domestic air ticket is adjustable against total annual income tax liability. According to Withholding Tax Card 2017/2018 updated by the FBR, stated that under section 236B of Income Tax Ordinance, 2001 the five percent advance tax on purchase of air ticket is adjustable. The person preparing air ticket is required to deduct five percent of gross amount of ticket from purchaser of domestic air travel ticket at the time of realization of sale proceeds.

Thursday, September 7, 2017

CUSTOMS BULLETIN

Quetta customs seizes smuggled items worth Rs27.9 million KARACHI WAQAR AhmeD ANSARI www.customsbulletin.com

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irectorate of Customs Intelligence and Investigations expedited their efforts to curb smuggling. The Collectorate seized smuggled items worth Rs27.9 million in 29 days of August, which included Iranian diesel, Iranian juices, large number of non duty paid mobile phones, electronics items, fake number plates and different other things. Sources told Customs Today that Deputy Collector Customs Preventive Junaid Mehmood received credible information that some smugglers are trying to smuggle smartphones from Afghanistan to Quetta via Chaman route. He immediately constituted a raiding team. The team enhanced vigilance in the area of Chaman and started searching operation of vehicles, after some time the team intercepted the VAN bearing registration number BK-7129. During checking, custom ofOicers recovered large numbers of smart phones from hidden parts of the van. The team seized mobile phones. The market value of seized smart phones is Rs 20 Million.

2,250 crates of non-duty paid Iranian origin Rani Juice seized HYDERABAD

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he Anti-Smuggling Organization (ASO) Sukkur has confiscated the foreign origin non-duty-paid 2,250 smuggling crates of Iranian Rani Juice valued at Rs2million including duties and taxes during an action near Bypass Hyderabad during a week ago of August 2017-18.

Smuggling item was being transported into Pakistan.

Following the strict guidelines by Hyderabad Customs Collector

Akhlaq Ahmad Khattaq, the ASO team executed various antismuggling actions to save the national exchequer. The team, headed by Additional Collector Customs Hyderabad Rehmatulah Vistro, constituted a raiding party, comprising of Superintendent Ghulam Shabbir Phulpoto, Inspector Imdad Ali Abro, Inspector Abdul Majeed Barich Muhammad, some Sepoys and a driver, which participated in the action. The team intercepted a goods transport vehicle near Bypass Hyderabad and recovered abovementioned foreign origin non-

Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by (Ibne Hassan Offset Printing Press, Shop No. 33 to 36 , Hockey Stadium, Karachi).

duty-paid 2,250 smuggling crates of Iranian Rani Juice priced at Rs1.1million involving duties and taxes of Rs829526 lakh. Before the recovery, officials asked the driver to produce any legal document about the possession of the item but he was unable to produce anything legal so the consignment was seized. A case was registered and an investigation was also started. Officials said that Hyderabad Customs Collector Akhlaq Ahmad Khattaq had directed that effective measures be taken for preventing the smuggling in the region.


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