August 27th issue

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Govt facilitating fdi: dar

To facilitate foreign investment in the country, a smooth process is laid out to facilitate investment in the country, says Finance Minister Senator Ishaq Dar | see PaGe 2 |

Owners of the vehicles through new facility would receive the details of token tax and other dues of their vehicles through SMS, says Mian Mujtaba Shuja-urRehman. | see PaGe 2 |

e-filing of Gst returns

— Exclusive customs today photo

Govt assisting taxpayers

TAXPAYER EDUCATION ONE OF FBR’S CORE FUNCTIONS MS. RIFFAT SHAHEEN, MEMBER FATE

the taxpayer should directly approach the facilitation wing so that he/she can get relief on the spot. the taxpayer can approach the wing through web and phone ISLAMABAD In a letter to Chairman FBR; Haroon Agar has drawn his immediate attention towards necessary upgrading of the software of GST e-filing. | see PaGe 3 |

faiZa israr

www.customstoday.com Member Facilitation and Taxpayer Education (FATE) in the FBR Headquarters, Ms. Riffat Shaheen Qazi, said that we are planning to start detailed workshops and awareness raising programmes for university students regarding income and other tax laws and amendments made in these laws.

Apart from large scale conferences being conducted in different chambers of commerce and FBR’s other organs, a specialist will also be a part of these conferences to help resolve the issues regarding tax policy, customs, income and sales tax and federal excise duty (FED).

In an exclusive interview with Customs Today, Ms. Riffat Shaheen who is official spokesperson of FBR said that we provide facilitation at different levels including indi-

vidual taxpayers, tax bars, chambers, clearing & forwarding agents and withholding agents.

The major role of the department also includes the interaction with all departments of FBR which resolves their queries and problems mainly through mails, helpline and web.

Its online system has been upgraded and the department deals with the grievances under Section 7 of FBR Act. The complainant or see page on 07

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02 NATIONAL

AuGuST 27 - SEPTEMBER 02, 2013

customs more vigilant to stop flight of foreign currency

KARACHI: After imposition of ban on import of gold by the government, the Customs officials and other agencies have become more active to keep strict vigilance on illegal import of gold and foreign currency from airports and other border check posts, in the backlash of dramatic fall of Pak rupee against dollar in the local money market. It is pertinent to mention here that the government has taken such steps after sharp fall of the local currency during the past few days.

china focus cell established at tdaP to enhance trade ties KARACHI

Govt committed to facilitate foreign investment: ishaq dar

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he establishment of “China Focus Cell” at Trade Development Authority of Pakistan (TDAP) dedicated to enhancing trade relations between China and Pakistan seems a strategic change of external trade focus from West to East.

It is important to note that the Prime Minister of Pakistan’s recent visit to China has given a new impetus to Pak-China Economic Cooperation which will usher in a new era of bilateral trade between two brotherly countries. The visit culminated in the signing of MoUs between Islamabad and Beijing which will reinvigorate trade relationship between both the countries.

Over the years, China has become key trading partner of Pakistan, resulting in increase in export to China which reached US$ 2,620 million in the year 2012 from US$ 436 million in the year 2005. This increase is predominantly attributed to Pakistan’s engagement in Free Trade Agreement (FTA) with China that came into effect in July 2007 whose second phase has started this year.

Pakistan’s imports from China stood at US$ 6,687 million in the year 2012 indicating hefty trade gap which needs to be tilted in favor of Pakistan through proactive participation of all stakeholders.

The Chinese market is attractive for a number of Pakistani products especially textile and textile products, leather and leather garments, fresh fruits, seafood, cutlery, cement, ores, marble and handicrafts.

Development of KashgarGwadar Economic Corridor will be extremely helpful in bridging gap between Gwadar, Baltistan & North West Region of China by bringing tremendous trade opportunities in the region. TDAP’s newly established China Focus Cell is headed by Director General (Marketing Division Asia) and staffed by a dedicated team of professionals, who will highlight trade opportunities for Pakistan in China and act as a catalyst in bringing about desired results in coordination with all relevant quarters.

Trade Development Authority of Pakistan (TDAP) envisages outstanding trade opportunities after the epoch-making visit and to capitalize on trade prospects, it has established a “China Focus Cell” at TDAP’s Headquarters, Karachi on the directives of the Secretary TDAP.

ISLAMABAD

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inance Minister Senator Ishaq Dar has said that Pakistan Muslim League Nawaz (PML-N) government is committed to facilitate foreign investment in the country and a smooth process is laid out to facilitate investment in the country.

He said this while talking to ITO, Yasushi Managing Director Yamaha Motors Pakistan. During the meeting Chairman Board of Investment (BoI) Zubair Omar, Chairman FBR Tariq Bajwa and senior officials of the Ministry of Finance were also present.

During his meeting with the Finance Minister ITO, Yashushi informed him that he has been running from pillar to post for the last four years to install a Yamaha Motorcycle Plant in Pakistan. It was only recently when the present government assumed power that the process has been accelerated, he added.

Regretting the delay caused in the acceleration of plant Senator Ishaq Dar said that the govern-

ment of Prime Minister Nawaz Sharif supports and welcomes Foreign Direct Investment (FDI).

The seriousness of the government can be gauged from the fact that it wants BoI to function as a one-window operation for foreign investors and has appointed a senior party colleague as its chairman. The Finance Minister assured the Managing Director Yamaha that the case of Yamaha Motors would be taken up in the next meeting of Economic Coordination Committee, which will meet shortly and resolve all issues so that the plant can be in-

The seriousness of the government can be gauged from the fact that it wants BoI to function as a one-window operation for foreign investors

stalled in the country without further delay.

Meanwhile, Finance Minister Senator Mohammad Ishaq Dar has constituted a sub-committee with Tariq Fatimi, Special Assistant to the Prime Minister as its Convener and Secretaries Establishment and Finance as its members to review the performance of different officers posted in Pakistan’s missions abroad.

This decision was taken during the meeting held under the chairmanship of Senator Mohammad Ishaq Dar, which met at the Finance Minister’s office. The meeting was attended by Federal Minister for Planning and Development, Ahsan Iqbal, Khurram Dastagir, Federal Minister for Privatisation, Special Assistant to Prime Minister Tariq Fatimi, senior officials of Cabinet Affairs Division, Defence, Information Broadcasting and Heritage, Overseas Pakistanis, Commerce and other senior officials.

The sub-committee has been directed to submit its report within three weeks. The Cabinet Division shall function as the secretariat of sub-committee.

It may be recalled that the PM had issued a directive to review the performance of Pakistan’s Missions abroad.

Punjab govt providing modern facilities for depositing tax: Mujtaba LAHORE

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rovincial Minister for Finance and Excise & Taxation Mian Mujtaba Shuja-urRehman said that the Punjab government is providing modern facilities to citizens for depositing tax.

While inaugurating online recovery of token tax of vehicles and SMS service at the office of Excise Department, he said that owners of the vehicles through new facility would receive the details of token tax and other dues of their vehicles through SMS, adding that when any person would send SMS of his vehicle’s registration number on 8070, he would receive automatically SMS of the deposited amount with all details of deposited dues.

Secretary Excise Shahid Ashraf Tarar, Chairman PITB Dr. Umer Saif, Director Excise Masood ul

Punjab govt as per vision of the CM Punjab is providing modern facilities to citizens for depositing tax. After computerization of all branches and web based tax calculator, now verification of amounts deposited through SMS is being started, says

mujtaba shuja-ur-rehman

Haq, Akram Gondal and other officers were present on the occasion.

Mian Mujtaba Shuja-urRehman informed that the Excise Department is also launching Android-based Application with the collaboration of Punjab Information Technology Board which will be made functional from the first week of September under which Android-based mobile phones would be provided to the Excise Inspectors who will collect the amount from the owners of the vehicles on the spot.

He said that these Inspectors would also be provided small handy printers to give receipt of received amount, carrying the name of the Inspector along with complete details of the amount.

This amount will be updated in the database simultaneously due to which the motor owners will be saved from visiting offices of the department.

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NATIONAL 03

AuGuST 27 - SEPTEMBER 02, 2013

fBr committee to redress problems of importers, clearing agents

FBR has decided to form a committee in collaboration with the Customs Department and other stakeholders including clearing agents and industrialists in order to facilitate the importers and clearing and forwarding agents and to take steps to curb the corruption in the department. Sources in the Customs Department told Customs Today that a 15-member committee is headed by the Project Director, (PD) WeBoC comprising other officials of the Customs Agents Association, KCCI and FPCCI .

FBRcollectsRs130brevenueinJuly ISLAMABAD

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ederal Board of Revenue (FBR) has collected Rs 130 billion in first month (July 2013) of the current fiscal year against a collection of Rs 106 billion in the same month of the last financial year.

According to provisional revenue collection figure of FBR, the Board fetched Rs 130 billion against the desired target of Rs 140 billion, registering a shortfall of Rs 10 billion so far. Till finalising of revenue figures in next few days, FBR expects that few billions more will be poured into national kitty and the revenue shortfall will be minimised.

fBr

mcc Preventive: No recruitment in collectorate since 1998 The collectorate is on verge of collapse; needs young blood, latest equipment

KARACHI

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he Model Customs collectorate (MCC) Preventive is on verge of collapse, as it needs induction of young blood and contemporary equipment on war footing basis in order to enhance its performance.

An official in MCC Preventive told Customs Today that the collectorate needs fresh recruitment and latest equipment. “Absence of specialised preventive officials, manpower and proper leadership are among the burning issues, which are affecting the performance of MCC Preventive”, he added.

He further informed that the information sharing system of the collectorate was not working properly due to the abolishment of “secret fund”, which was introduced to facilitate the ‘informers’.

“The collectorate with the assistance of the Maritime Forces/Agencies are conducting raids in sea”, he informed.

The official further informed that the information sharing system was also in pathetic state, as no reward for informers had been issued from the collectorate, adding that the preven-

tive officers and informers had proper coordination mechanism and they worked with effective strategy.

He said that the Customs top brass was eyeing on soft targets as far as revenue generation was concerned, neglecting the Enforcement Department in this connection.

He urged the government and Finance Ministry to take serious steps to revamp the MCC Preventive in effective way. It is pertinent to mention here that no new recruitment has been made in MCC Preventive since 1998.

Information sharing system of the collectorate was not working properly due to the abolishment of “secret fund”

Under the IMF’s bailout package of $5.3 billion, it is important for Pakistan that revenue mobilisation efforts of FBR did not meet with failure as in such scenario the upcoming Fund programme will be derailed in months ahead.

“The IMF’s executive board is going to consider approval of Pakistan’s programme under Extended Fund Facility (EFF) by early September and Fund’s review mission will visit Islamabad by late October or early November to analyse performance achieved in first quarter (JulySept) and in case of revenue shortfall, Pakistani authorities will be forced to take additional revenue measures to protect fiscal framework,” said the official.

FBR urged to upgrade software for e-filing of GST returns

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KARACHI

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he trade and industry willing to file their GST returns through digital system have complained about complications in filing the returns electronically and appealed to FBR to look into the system and upgrade it on immediate basis in order to avoid inconvenience caused to the registered taxpayers who file their returns electronically as per new changes and enhanced GST rate of 17 percent.

In a letter to the Chairman FBR; Haroon Agar President KCCI has drawn his immediate attention towards necessary upgrading of the software of GST e-filing and stated that several members have approached the KCCI informing that they were unable to file their GST returns electronically.

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04 NATIONAL

AuGuST 27 - SEPTEMBER 02, 2013

us senators threaten to hold back afghan aid over customs fines

Two senators who wield considerable influence over U.S. foreign aid threatened to withhold funding for Afghanistan if the government in Kabul doesn’t cease attempting to collect customs fines for U.S. military cargo being shipped out of the country as part of the troop drawdown. Sen. Patrick J. Leahy (D-Vt.), called the Afghan government’s request that the U.S. military pay $70 million in customs fines as illegitimate.

Customs officers CTP sequence finalised LAHORE

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rupee at all-time low:

Illegalchannelsmayattracthomeremittances

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ederal Board of Revenue (FBR) has finalised various officers of Pakistan Customs Services (PCS) for 35th and 36th CommonTraining Programme (CTP) of inter se seniority.

The officers selected for 35th CTP are Muhammad Ali, Asad Khan, Beenish Iftikhar,Tayyaba Bukhari, Asma Bashir, Khaldun ul Haq, Muhammad Moazzam Raza, AliWaheed Khan, Zaheer Abbas Amanullah, Syed Babar Ali Shah, Fazli Shakoor, Asim Rehman, Mumtaz Ali, Muhammad Faisal, ZehraTahir Naqvi, Shoukat Hayat, Shams ur Rehman Wazir and Iqbal Ahmad Memon.

Similarly, the officers finalised for 36th CTP are Falik Shair, Ammar Ahmad Mir, Nuasheen Riaz Khan,Yawar Nawaz, Muhammad Rizwan, Mehwish Shah, Mariam Mehdi Raja, Mahmood ur Rehman Khattak, Muhammad Rehan Akram, Aneeqa Afzal, Palwasha Syed, Amina Naeem, Shah Faisal, Abdul Mueed Omer Bin Zafar Chattha, Jahanzeb Abbasi and Sohaib Anwar Hashmi.The officers are directed to file objections, along with documentary evidence to seniority list by September 06, 2013 failing which it would be believed the officers had no objections and the inter se seniority list would be finalised accordingly.

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KARACHI

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ak rupee plunged to alltime low against dollar in open market recently which is feared to have adverse impact on the economy especially investment inflows and home remittances if the gap between interbank and open market rate is not controlled immediately.

Expressing deep concern over recurring devaluation of the Pak rupee against the dollar, KCCI President Haroon Agar has termed it detrimental for the economy.

The enhancement in the rupee dollar parity is due to inefficiency of policymakers. The rupee has plunged to life-time low position and will not attract the investors. Due to huge difference in the interbank exchange rates, the overseas Pakistanis would opt to other channels to send their remittances to Pakistan.

Haroon Agar said that our country cannot afford to have one of the worst-performing

currencies in Asia which will cause huge deficits and lack of capital inflows, depletion of reserves, flight of capital, and failure to push through economic reforms. It appears that policymakers lack a consistent plan to stabilise the currency which will compel business community to start looking at opportunities in other countries.

Though the weaker rupee may benefit to exporters by giving them more rupees per dol-

lar, but this benefit is neutralised by the costly imported inputs of manufacturing sector including textiles thus eroding the financial advantage of a weaker rupee.

Our economy is in slump as all sectors of economy are showing negative growth and further fall in value of rupee will cause more contraction in economic activity leading to reduced tax revenue for government and huge foreign debt.

Haroon said that in the current scenario, depreciation of the rupee at its current pace won’t push up exports, rather will certainly inflate import bill and inflation that, over the years, became closely linked to the exchange rate because of Pakistan’s ever higher reliance on imports, particularly of energy inputs.

Faster the depreciation of the rupee, higher will be inflation and lower the competitiveness of Pakistan’s business and industry.

Therefore, government should get quickly into action to control this damaging trend to bring stabilisation in exchange rate to protect national economy from further injury.

Overseas Pakistanis remit $1.4b in July verseas Pakistanis remitted an amount of $1,404.39 million in July 2013 of the current fiscal year (FY1314), showing an impressive growth of 16.57 percent or $199.68 million as compared with $1,204.71 million received during the same month of the last fiscal year (FY1213). Remittances received from most of the countries showed growth.The inflow of remittances during July 2013 from Saudi Arabia, uAE, uSA, uK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and Eu countries amounted to $410.73 million, $252.41 million, $233.06 million, $221.93 million, $161.44 million and $38.59 million respectively as compared with the inflow of $349.66 million, $240.54 million, $215.30 million, $148.49 million, $140.36 million and $30.83 million respectively in July 2012.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the last month amounted to $86.23 million as against $79.53million received in the same month of the last fiscal year (FY12-13). It may be recalled that in order to provide an ownership structure in Pakistan for remittance facilitation, the government of Pakistan through SBP, Ministry of Overseas Pakistanis and Ministry of Finance had launched a joint initiative called Pakistan Remittance Initiative (PRI) in April 2009.

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Growth in FBR tax revenue remains sluggish: SBP report

Customs seizes smuggled goods worth Rs 44m in July

ISLAMABAD

LAHORE

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he State Bank of Pakistan released a comprehensive report on the current economic situation in Pakistan and with regard to the working and efficiency of FBR. It said as the economy entered the 2nd half of fiscal year, the key challenges to macroeconomic management were emanated from fiscal side and also the external sector.

After the surplus during the 1st half of FY13, the current account position is deteriorated to deficit in Q3FY13, increasing pressure on country’s foreign reserves. On the domestic front, growth in FBR tax revenue remained sluggish, while expenditure on power subsidies and debt servicing increased sharply.

Finally, the government had to resort increasingly to borrowing from SBP to finance its fiscal deficit. On a positive note however inflation fell significantly in Q3FY13, and large scale manufacturing showed some sign of recovery.

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odel Customs Lahore anti-smuggling department has seized smuggled goods and articles worth Rs 44 million during the month of July.

According to details, the antismuggling department seized ladies cloth worth Rs 0.44 million, 617.28 kgs parachute fabric worth Rs 0.35 million, A/S cloth 410kgs worth Rs 0.29 million, diesel generator (3 Nos) 39KVA worth Rs 1.20 million, diesel generator 275.300 KVA worth Rs 2.00 million and apprehended miscellaneous goods worth Rs 1.30 million.

Similarly, the department held one Honda Civic car IDS-686 worth Rs 1.0 million, Honda Accord car LEE-08-7217, Toyota Corolla car IDF-8075 worth Rs 0.80 million, Toyota Crown car R-2790 worth Rs 0.30 million, DVD & cloth worth Rs 1.40 million, ladies suiting cloth 300 rolls worth Rs 0.75 million and miscellaneous goods and articles worth Rs.0.75 million.

The anti-smuggling squad also

seized diesel generator 500 KVA worth Rs 2.00 million, Gerry cloth 6048 kgs worth Rs 3.00 million, Indian cloth 10000 metres worth Rs 1.0 million, dry milk powder 250 bags, diesel generators 1200 KVA and 20 KVA worth Rs 9.16 million, Mazda truck LES-13-6071 worth Rs 0.12 million and diesel generator 75KVA worth Rs 0.70 million.

The department also detained A/S cloth 2460 yards worth Rs 0.25 million, HRC coil 35425 kgs worth Rs 3.04 million, steel coil 12 tonnes worth Rs 1.20 million, polyester lin-

ing cloth 135000 yards worth Rs 0.70 million, Toyota Corolla car LXE-786 worth Rs 0.80 million and MS pipe 2543 kgs worth Rs 3.44 million.

The department confiscated body of a Mazda truck/LES-091916 worth Rs 0.12, plastic dana 100 bags worth Rs 0.50 million, old & used generators worth Rs 1.80, Indian A/S cloth 9300 yards worth Rs 0.58 million, diesel generator 100 KVA worth Rs 1.00 million and shampoo, creams and spray 12156 packs worth Rs 1.28 million.

An insider said that the seized goods and articles were originated in the US, India, Iran and Russia and were attempted to smuggle in Pakistani markets from Peshawar and Quetta.

Earlier, during the month of June 2013, the department confiscated smuggled vehicles and contraband goods worth Rs 29.48 million in 49 cases. The total duty taxes evasion of these goods was Rs 15.95 million.

When compared with the month of June 2013, seizures in July were more than double as the anti-smuggling department had seized smuggled vehicles and contraband worth Rs 8.22 million in 18 cases in June.

Sources said that the rising number of seizures happened due to strict implementation of instructions given by Collector Customs Junaid Akram as the collector had ordered the officials concerned to fully utilise all available resources to overcome the menace of smuggling.

Sources added that the department was quite aware of the fact that domestic industry was suffering from hefty losses due to the rising trend of smuggling.

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INTERVIEW 05

AuGuST 27 - SEPTEMBER 02, 2013

Pak resumes seafood exports to eu after 6-year ban

KARACHI: The export of seafood from Pakistan to European Union resumed after a ban of six years. The clearance of the first export consignment of Pakistani seafood to the European Union after a lapse of six years is a positive sign for the export of shrimp and fish products from Pakistan, said Zubair Ahmed Malik, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

— Exclusive customs today photo

DOTproducing trainedcustomsforce: mehboobsaqibkhan The mission of the Directorate is to achieve excellence in the field of training in Taxation and Fiscal Management. The organisation is producing officers who are public friendly and committed towards solving business problems.

LAHORE

m haYat

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ormer Directorate General of Training & Research (Customs) Lahore is relatively speaking an unglamorous wing of the Customs Department but those who know about the working of this organization say that the DOT Customs is the heart and soul of the whole Department and provides it with the kind of trained manpower which produces results.

This is the directorate which provides training to Customs officers who ultimately act as the guardian of the economic borders of Pakistan. Former Directorate General of Training & Research Customs administers three training centres at Islamabad, Lahore and Karachi to impart training and develop training policy for personnel of Customs Department.

In an exclusive interview with Customs Today, Mehboob Saqib Khan, former Director General answered many questions and traced the history of the Directorate: “In 1973 through Administrative Reforms the Federal Services Academy became Civil Services Academy and Directorate of Inspection and Training was established at Karachi and an independent Directorate of Training was established in 1981 at Karachi and in 2000 at Lahore. The Directorate was established at Islamabad in 1997. After transfer of the Post of Director General from Islamabad to Karachi in 2005 this Directorate is working as Regional Directorate of Training & Research (Customs)”.

What are the major functions of Directorate of Training & Research (Customs)?

This Directorate is providing training to the officers of the Customs Department who are working in different directorates, including Directorate of Intelligence and Investigation (FBR), Lahore, Directorate of Internal Audit (Customs), Lahore, Directorate of Post Clearance Audit, Lahore, Model Customs Collectorate (Appraisement), Lahore, Model Customs Collectorate (Preventive), Lahore, Model Customs Collectorate, Multan, Model Customs Collectorate, Faisalabad, and Model Customs Collectorate, Sialkot. Major functions of the Directorate include

In 1973 through Administrative Reforms the Federal Services Academy became Civil Services Academy and Directorate of Inspection and Training was established at Karachi and an independent Directorate of Training was established in 1981 at Karachi and in 2000 at Lahore. The Directorate was established at Islamabad in 1997.

induction and post promotion training to all tiers, refresher courses for all grades, conducting test of applicants for getting New Customs Agent Licenses, 6-Day Mandatory Course for all customs agents, Computer Based Training (CBT) in collaboration with UNODC, information technology courses and international customs/taxation courses.

What is the basic goal of the training provided by the Directorate?

Well, the purpose of the Directorate is to achieve excellence in the field of taxation and economic management in South Asia and evolve into a premier regional organization, which will produce future economic managers and leaders. The Directorate is meant to develop a Customs Academy with international links and affiliations, to serve the Customs training needs of the region as a centre of excellence in Customs Administration.

Similarly, the Directorate is supposed to develop the Academy with state-of-the-art technologies, as a future-driven training centre having its own Campus, Faculty as well as Charter to award degrees and establish training units in the Customs Collectorates/Regional Tax Offices to provide on-the-site training, besides serving as a forum for professional development and resource centre for tax collectors as well as taxpayers.

What innovations have you introduced after taking charge of the Directorate?

It gives me immense pleasure to launch the website of the ex-Directorate General of Training and Research of Pakistan Customs. It is a humble effort but the first step towards introducing this office to the general public and business community in particular. I hope this shows the capabilities of this office. In the past, we have held training courses for officers from Brunei and Palestine but unfortunately, due to the socio-political situation, we are not currently conducting any courses for foreigners.

It is my endeavour to ask the business community and stakeholders as well as officials of the Department to come forth with suggestions and crit-

icism for the improvement of the Directorate through this website.

“It is my perception that we should train officers who can prove to be an asset to the Department by solving problems of the business community, who take decisions and are not hostile to the public. Instead they took the business community and the clientele as their friends. If we succeed in doing this, I will be the happiest man on Earth.”

In the end, I would like to thank and mention all officers of the Directorate for their input, particularly Dr. Muhammad Afzal, Additional Director, Lahore, Mr. Agha Jawad, Director, Karachi, Ms. Zahra Haider, Deputy Director, Lahore, Dr. Rizwan Basharat, Deputy Director, Lahore and Mr. Muhammad Asghar Khan, Additional Director, Islamabad.

What methodology do you adopt to train the officials?

Training methodology at the Directorate includes lectures, workshops, seminars, hands-on practice, expert talks, case studies, field trips and onthe-job and group activities consisting of discussions and presentations.

What facilities do you extend to the trainees at the Directorate of Training and Research (Customs), Lahore?

The officials who come to get training at the Directorate are provided with the air-conditioned interactive class-rooms, computer lab consisting of 25 computers, multimedia projector, internet/e-mail server and a pool of well-qualified, multilingual and experienced resource persons.

How many trainees have you trained during the last few years?

I took over the charge of Directorate during 2011. However, the total number of participants trained since 2007-2013 are 7620 while the number of courses, workshops, seminars is 494. The courses enabled the Customs officials to understand the value of professionalism, leadership, excellence, perseverance, commitment, innovation and integrity.

(This Interview was conducted when Mehboob Saqib Khan was DG Training & Research.)

ProfiLe ehboob Saqib Khan holds a Masters degree in Economics. He secured the 6th position in the CSS examination and opted for Customs Services.

Working as Chief TEPI and In-charge Input-Output Co-efficient Organization (IOCO), he saved Rs 17 billion for Federal Board of Revenue (FBR) by rationalising rebate notifications with the consent of traders. He also architected Duty Tax Remission for Export (DTRE) scheme, replaced old communication with optic fiber connectivity in the Customs House, Karachi and established connectivity throughout the country. He is also one of the primary architects of current format of the goods declaration. He made major contributions in making the Customs Act compatible with requirements of the World Trade Organisation (WTO). As the Collector Valuation Khan reformed the procedure and published three guides for valuation of audit and got reward for detection of evasion of duty and taxes. As the Collector Preventive, he achieved targets and received rewards for detection of a gold case. As the Collector Appraisemnet, Karachi, he achieved the highest collection ever till that time. He introduced Automated Customs Procedure (ACP) which is operational to date. As Director Intelligence Lahore he obtained 70 kanals of land from Punjab Liquidation Board for the FBR. He laid the foundation and completed new office of Directorate of Intelligence, Lahore. Similarly as Collector Faisalabad he took possession of 2 acres of prime land from the provincial government and payment for the land had been made 20 years ago.The government sent him in the first batch for Executive Development Programme to Harvard university, uSA. He also did a course on Public-Private Partnership from Corporation for Enterprise Development (CFED), uS.

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06 EDITORIAL

AuGuST 27 - SEPTEMBER 02, 2013

Member Customs striving to make the Deptt corruption free Founder & Chairman Zulfiqar ali Editor nasim ahmed editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-324-4404694 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

editoriaL

thesrocuLture ver the years much has been written and spoken against the SRO culture but it has continued to flourish regardless. As ordered by the government of the day and sometimes on its own, FBR keeps issuing SROs to cover specific cases and sectors. An abbreviation for Statutory Regulatory Order, SRO is simply an instrument of financial governance to regulate the import regime. But knowledgeable quarters are of the opinion that it is excessively used and, sometimes, without any justification.

The Public Accounts Committee (PAC) was informed last year that the SRO culture had cost the national exchequer about Rs650 billion in the form of exemptions and concessions granted to various parties.

According to the latest economic survey, the amount lost through exemptions and concessions totalled around Rs900 billion in the last five years. It has been pointed out that in most cases the SROs are company specific rather sector-specific, which violates the principle of justice and fair play. For instance, SRO 57(I)/2012 issued in January 2012 reduced the turnover tax by 50 percent -- from 1 percent to 0.5 percent -- for Pakistan International Airlines, giving it an unfair advantage of about Rs500 million over other airlines.

Tax experts are of the opinion that there are hundreds of iniquitous and lop-sided SROs which need to be reviewed for their inconsistencies with previous tax laws and orders and for infringing the principle of fair competition. According to one estimate, more than 4,500 SROs have been issued over the last few decades, the bulk of them during the Musharraf era. These SROs relate to income tax, sales tax and FED. It has been noted that the number of SROs goes up during the military regimes which rule by fiat and authoritative orders. But records show that hundreds of SROs have also been issued by FBR under elected governments.

Given the fast pace of economic changes around the world and their impact on economies of developing countries, a resort to SROs sometimes becomes necessary to protect specific sectors. But, having said this, their indiscriminate use cannot be condoned, especially when they are designed to benefit a particular firm or group. To ensure that SROs are issued in a transparent manner and are not misused, it is important that clear rules and regulations are made and objective criteria and strict conditions are laid down governing their application. As a further safeguard, a special committee comprising representatives from the Ministries of Finance and Commerce should be formed to scrutinize each case in detail before giving its approval for the issuance of an SRO. The committee can also be tasked to undertake a comprehensive review of the existing corpus of SROs to verify their legitimacy and need.

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Customs oďŹƒcials yearning to achieve target

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he top brass in Customs Department including Chief Collectors, Collectors, Additional Deputy Collectors and Deputy Collectors are determined not only to achieve the revenue targets in new fiscal year 201314, but to increase it with the help of comprehensive strategy.

In this regard, transfers and postings have also been done at top level in Customs House, Karachi following the appointment of new FBR Chairman Tariq Bajwa.

The officials in Customs Department were of the view that the current transfers and postings will play a significant role in increasing the revenue generation of the department. They further said that the division of PaCCs Collectorate into two more collectorates i.e. KICT-East

Wharf and KICT-West Wharf will further increase the revenue and put the positive impact on the department, as more efficient and talented officials will get the chance to exhibit their performance.

Additional Deputy Collector-I Dr Fareed Iqbal Qureshi while sharing his views with Customs Today said the department will enhance its revenue generation during current FY-201314.

"We can easily not only achieve the revenue targets, but also increase it by utilising available resources", he added. Chief Collector (Enforcement) Muhammad Yahya said the department has achieved its target in previous Fiscal Year 2012-13 and will try to surpass the envis-

aged target this time around. It is pertinent to mention here that Prime Minister Mian Muhammad Nawaz Sharif has recently issued directives to FBR and Customs Department in order to improve the efficiency of the departments. Subsequently, the top brass in Customs House open their wings and formulated an effective strategy in the light of the PM's directives.

However; the Karachi Customs Agents Association (KCAA) has strongly condemned the division of PaCCs Collectorate and termed it an attempt to increase the corruption by appointing more Customs officials.

President KCAA Saifullah Khan while talking to Customs Today said the authorities concerned in Customs Department have not taken a wise decision by splitting the PaCCs Collectore into two other collectorates.

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SPECIALREPORT 07

AuGuST 27 - SEPTEMBER 02, 2013

taxpayer education one of fBr’s core functions from page 01

MEMBER FATE ProfiLe

W

— Exclusive customs today photo

aggrieved party registers complaints with the concerned wing through proper channel by submitting all the required material so that their problems can be resolved at the earliest.

She said, “We strive to promote and mobilise the system by printing brochures as well as sending messages. We are proactive and responsive and for this purpose we update our website regularly. For the convenience and facilitation we work properly online along with GIZ (a German NGO), where we arrange workshops for internal and external stakeholders on regular basis. In addition we will have extensive awareness campaigns this year.”

“One of the major issues we are facing is lack of communication between taxpayers and tax authorities. The middle men -- advisors and consultants -- are creating hurdles. There is a facilitation wing at every RTO including commissioner for facilitation.

The taxpayer should directly approach the facilitation wing so that he/she can get relief on the spot. The taxpayer can approach the wing through web and phone,” she added.

Talking about FBR’s deficit in the first quarter’s revenue collection, she said that first quarter cannot give us the actual position as second and third quarters present the real picture of revenue collections because these months can be called months of real returns. We do facilitate the taxpayer if a taxpayer wants to make advance payments.

After assessing the last year’s tax, he can be facilitated by installments but this facility is only provided to those taxpayers who make advance tax payments and then the remaining amount is collected in the fourth and final quarter. The fourth quarter is basically the assessment quarter by FBR itself.

Answering to a query she pointed out the key role of FATE wing which is one of the most important departments of FBR since it organises advertisement campaigns, and is responsible for news and press releases for FBR. She said that unregistered businesses which do not pay sales tax should go for registration as early as possible.

Replying a query, she said the CREST and WeBOC systems launched by FBR are very effective and useful.

But these systems sometimes develop errors which are resolved immediately. In this regard FBR has appointed a separate IT member for efficient working and elimination of errors in WeBOC and CREST. In addition to this FBR is now moving towards ITMs integrated system, she concluded.

orking style of some of high profile officials seems mundane but in fact, if they are replaced, even vast experienced personnel cannot fill their gap. Ms Riffat Shaheen Qazi, Member FATE, is also a soul one cannot see effects of fatigues on her face despite the fact that she has to accomplish a lot of responsibilities simultaneously.

Ms Riffat Shaheen Qazi, BS-21 officer, is the Member Facilitation and Taxpayer Education (FATE) in FBR Headquarters since April 17, 2013 and is also designated official spokesperson of FBR. Ms Riffat Qazi, a senior officer of Income Tax Group from the 7th Common, has previously served in various key positions across the country. She was previously posted as Federal Secretary Capital Administration and Development Division, Government of Pakistan. She has also worked as a part of reform team in FBR as Chief (Tax Reforms) and also as Chief Commissioner RTO Rawalpindi and Commissioner Large Taxpayer Unit (LTU) Islamabad. She had also introduced modern management/administrative recovery techniques and introduced proactive mode of communication Internal/External, creating linkages for facilitation of taxpayers. She holds MBA degree from John F. Kennedy University USA as well as Masters and M.Phil degrees in Economics from University of Peshawar.

She accomplished extensive Senior Executive Management training courses from the Harvard University Boston USA and from the Royal Institute of Public Administration (RIPA), London on Developing a Modern Human Resource function.

She also holds certificate in Change Management and Developing Strategic Change Leadership from Rausing Executive Development Centre, LUMS University Lahore.

There is no doubt that Member FATE has to shoulder a lot of responsibilities including facing journalist’s community which is considered as the toughest task around.

One of the major issues we are facing is lack of communication between taxpayers and tax authorities. The middle men -- advisors and consultants -- are creating hurdles. There is a facilitation wing at every RTO including commissioner for facilitation. The taxpayer should directly approach the facilitation wing so that he/she can get relief on the spot, ms. riffat shaheen

However, she has had more than enough experience to tackle all these challenges.While talking to this scribe before Customs Today’s launching, she promised to provide all-out help in providing fresh information regarding FBR and Customs Department. She also appreciated the idea of launching a weekly on a specialized subject of Customs and running a website wherein happenings of Customs and FBR officials would be updated round the clock.

The FATE wing of FBR is one of the support wings created as a result of tax administrative reform process also known as (TARP). In the wake of universal self assessment and introduction of new audit based Income Tax Ordinance and Sales Tax Law as well as speedy Customs clearance screened through automated risks parameters, the importance of tax payers’ facilitation and education has also emerged as a hallmark of newly reformed FBR.

following are the details of fate department’s functioning:

• To ensure flow of information to the stakeholders that is timely, relevant and of high quality.

• To keep close liaison with the electronic and print media of the country for all the updates, news and events.

• To receive the information and queries from the taxpayers regarding procedural and technical difficulties being faced by them in meeting the tax obligations and to respond by rendering them advice in removing such difficulties.

• To promote ‘cultural change’ in FBR as tax officials must adopt more assisting and facilitating attitude towards taxpayers rather than traditional confrontational mode.

• To prepare and publish brochures, guides and material related to all taxes for the facilitation of general public at large.

• To simplify tax return forms and other forms for the facilitation of tax payers.

• To maintain a user-friendly website providing maximum information to stakeholders regarding tax laws, procedures, and facilitation brochures and forms.

• To arrange and organise tax awareness seminars, employee workshops and question answer sessions.

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08 NATIONAL

AuGuST 27 - SEPTEMBER 02, 2013

nawaz approves Pak-china trade corridor plan

ISLAMABAD: Prime Minister Nawaz Sharif has principally approved the proposed alignment of Pakistan-China Trade Corridor. The PM, however, directed for further evaluation of the proposal in terms of time and cost efficiency. Pakistan-China Economic Corridor, is the future of the country and it will connect Pakistan with China, making Pakistan a hub of transit trade in the region.

ISLAMABAD

sm haider

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T

he World Bank has offered $300 million loan to Pakistan for implementing Revenue Mobilization Programme for revamping administration of Federal Board of Revenue (FBR) as well as increasing revenues over the medium term.

After unsuccessful implementation of Tax Administration Reform Project (TARP-1) in Pakistan even after spending multimillion dollars in recent past from 2005 to 2011, the WB has given $3 million for preparing detailed strategy to bestow another $300 million programme to FBR in order to overhaul tax administration as well as mobilising revenues over next three years period.

“After approving of IMF’s bailout package, the WB’s programme loans will be resumed including proposed $300 million for Revenue Mobilisation Programme,” senior official sources in FBR confirmed.

In the first TARP-1 project, World Bank and UK-based DFID’s sponsored Tax Administration Reform Project (TARP) but ironically it failed to get the desired results.

FBR had remained unable to fully utilise revised cost of Rs 6.473 billion on TARP project. So the exact estimated utilization on TARP stood at Rs 5.5 billion.

Out of Rs 5.5 billion utilisation, FBR spent Rs 2.767 billion on infrastructure for construction of buildings of Large Taxpayers Units (LTUs), Regional Taxpayers Offices (RTOs) etc out of total estimated cost of Rs 2.881 billion, purchasing vehicles Rs 176 million out of estimated cost of Rs 179 million, programme management Rs 271 million out of total estimated cost of Rs 291 million, ICT Hardware Rs 1.572 billion out of estimated cost of Rs 1.686

wB offers $300m loan for Revenue Mobilisation Programme the programme aims to revamp fBr’s administration and to increase revenues over medium term billion, ICT Software Rs 285 million out of total estimated cost of Rs 312 million, technical assistance Rs 142 million out of estimated cost of Rs 630 million and training of FBR officers and staff Rs 315

million out of estimated cost of Rs 493 million.

Top guns of tax machinery conceded this fact that tax machinery remained sluggish for utilising latest technology to

broaden its tax base.

However, official documents showed that the TARP-1 project was initiated on January 1, 2005 for a period of five years.

The initial estimated project cost was US$ 149 million (Rs. 9,501 million) (IDA: US$ 78.50 million; IBRD loan: US$ 24.40 million; DFID: US$ 23 million; and Government of Pakistan S$ 23.10m million) and was approved as PC-I. The TARP was initiated in 2005 and the development objective was to fundamentally reform FBR for a more efficient and effective revenue administration system.

The overriding objective was to raise tax revenue through improved compliance with tax laws and broadening of the tax base; improving effectiveness, responsiveness and efficiency of tax administration through institutional and procedural reforms; improving collection through transparent and high quality tax services; and strengthening audit and enforcement procedures.

The project cost was revised down from Rs. 9,501 million to Rs. 6,473 million in 2009 through a revised PC-I and ECNEC approval with a revised implementation period upto 3l December 201 1. Surplus funds of US$ 49.2 million (which included the IBRD loan of US$ 24.40 million) were surrendered to the World Bank.

The restructuring of TARP was undertaken in September 2010. Under the restructuring, TARP was extended upto 31 December 2011 with more focus on result based indicators. The financing is 100% from the World Bank. No financing for GOP has been received.

The official documents claimed that tangible progress on TARP was achieved during the calendar year of 2011. Under TARP, FBR awarded 29 contracts with estimated cost of $17 million and almost 70 percent work had already been accomplished in accordance with December 2011 report.

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AuGuST 27 - SEPTEMBER 02, 2013

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10 KARACHI

AuGuST 27 - SEPTEMBER 02, 2013

tcP awards tender for import of 75,000mt urea

KARACHI: Despite being self-sufficient in Urea production, Pakistan has to import the fertilizer primarily because of acute shortage of natural gas in the country. Consequently the Trading Corporation of Pakistan (TCP), in response to its tender opened on 22-07-2013 has awarded contract for import of 75,000 metric tonnes (MTs) of Urea to the lowest bidder M/s. Swiss Singapore Overseas Enterprises PTC at US$ 317.00 per metric tonne (PMT) C&F.

— Exclusive customs today photo

APCAA wants impartial inquiry into ATT scam, says Jamal KARACHI

sohaiL raB khan www.customstoday.com

A

Customs Department should launch inquiry against its officials dealing with Afghan cargo, says Senior VP APCAA, arshad Jamal

ll Pakistan Customs Agent Association (APCAA) wants transparent inquiry in Afghan Transit Trade (ATT) scam to reveal the real culprits involved in it.

This was stated by Senior Vice President All Pakistan Customs Agents Association (APCAA) Arshad Jamal during an exclusive interview with Customs Today at his office recently. He said that Federal Board of Revenue (FBR), Customs Department and National Accountability Bureau (NAB) held inquiry about 28,000 missing containers in ATT scam.

However; National Logistics Carrier (NLC) and Pakistan Railways had already admitted before NAB that they had sent 10,000 and 11,000 containers respectively across the border to Afghanistan and Afghan authorities had acknowledged the same.

Senior Vice President APCAA Arshad Jamal said that Customs Department should launch inquiry against its officials dealing with Afghan cargo.

Jamal further informed that rehearing of ATT scam is to be conducted by Customs officials at the end of this month (August).

He said that role of Customs agents has already been elaborated in public order 16/2000, that they

FBR Chairman assured APCAA for conducting impartial inquiry in ATT scam are only responsible for goods before assessment & examination and after that Customs officials, border force and national carriers are responsible to help cross goods to Afghanistan.

“We have held a detailed meeting with Chairman FBR Tariq Bajwa in this regard and informed him about view point of APCAA, and FBR Chairman assured us for conducting impartial inquiry in ATT scam”, he added.

Senior Vice President of APCAA Arshad Jamal talking exclusively with Customs Today.

APCAA prepares 20-point agenda for Customs Deptt

A KARACHI

customs todaY rePort www.customstoday.com

ll Pakistan Customs Agents Association (APCAA) has prepared a 20-point agenda for discussion with the Chairman Federal Board of Revenue (FBR) and Chief Collector (Appraisement) in order to improve the work of Customs Department.

The points of agenda are as follows:APCAA has demanded introduction of methods in order to curb

corruption from the department.

Removal of complications created due to the enhancement of Customs stations.

Introduction of hassle-free procedure to enroll the taxpayers in the department by providing them ID and password. Amendments in the process of collecting Customs levy at National Bank of Pakistan (NBP), Customs House Branch.

Induction of automation in WeBOC; as it is imperative to curb corruption and helps in elucidating the entire procedure. Standing orders to be issued to restrict the de-

clarant for mentioning proper description, weight, quantity and other information in the light of Customs tariff and valuation rulings, as the submission of inaccurate Goods Declarations (GDs) is continued with the connivance of Customs officials.

Holding of the procedure of filing self goods declaration by commercial sector, as it causes to sabotage the system. APCAA urges valuation ruling along with HS code in order to determine the exact value of duty and taxes besides facilitating goods declarants.

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KARACHI

AuGuST 27 - SEPTEMBER 02, 2013

11

Pak exports up by 2.65% in 1st month of current fY

LAHORE: Exports from the country increased by 2.65 percent during the first month of the current fiscal year (2013-14) as against the exports of the same months of the last fiscal year. Exports during July 2013 were recorded at $2.095 billion against the exports of $2.041 billion during July 2012, according to the data of Pakistan Bureau of Statistics.

KARACHI

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G

eneral Secretary of Karachi Customs Agents Association, Yahya Muhammad said with full confidence that their panel would emerge successful in the upcoming annual elections of Karachi Customs Agents Association (KCAA), to be held on September 26, 2013.

In an exclusive interview with Customs Today, Yahya Muhammad said that their panel fully cooperated with the Customs Department and its officials in their tenure.

Commenting on performance of Qasim International Container Terminal (QICT), he said that QICT management is playing very supportive role to facilitate trade bodies and clearing agents. However, Pakistan International Container Terminal (PICT) and Karachi Interna-

tional Container Terminal (KICT) are not facilitating the clients.

Importers, exporters and trade bodies have to pay extra charges in terms of demurrage and detention charges due to slow process of clearance at terminals.

“QICT is clearing more containers every day as compared to PICT and KICT”, Muhammad said.

“According to the Customs Act 203, 1969, Collector Customs may decide storage/wharf age with terminal operators, but violation of the said Act is continued”, he further added.

Highlighting issues of clearing agents, KCAA General Secretary said that authorities concerned have cancelled licenses of several agents without any intimation or showcause notice, causing great inconvenience for them.

Yahya said that Customs officials must have cordial relation with agents and they should conduct training sessions on regular basis, adding that Federal Board of Revenue (FBR) should take onboard the agents association and trade bodies while implementing or introducing any new strategy.

Yahya appealed to Governor State Bank of Pakistan (SBP) to introduce online system at all National Bank of Pakistan (NBP) branches so that importers can deposit their tax returns online from anywhere.

He further said that authorities concerned should decide the fate of Afghan Transit Trade (ATT) scam on merit basis.

— Exclusive customs today photo

our panel will emerge successful in annual elections, hopes KCAA Gen Secy

KCAA elections’schedule announced

T

he Karachi Customs Agents Association (KCAA) has announced its annual elections’ schedule for the year 2013-14.

According to the details, the annual elections of the KCAA for the year 2013-14 would be held on September 26 while the last date of filing the nomination forms for contesting elections would be September 11.

Scrutiny of the nomination papers will be held on September 13 while the list of valid nominations will be displayed on Sept 14.

Moreover, the last date of withdrawal of

the nominations would be Sept 23.The final list of the candidates will be displayed on September 23. The current President of the agents body Saifullah Khan while talking to Customs Today said that his panel Karachi Customs Agents Alliance will win the upcoming elections for 4th time consecutively.

“We have full belief on our supporters and the work done by the Customs Agents Association in the best interest of the clearing agents”, he added.

Customs XI win friendly hockey match against Int’l XI KARACHI

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customs todaY rePort

ustoms Preventive Service Club organised a friendly hockey match between International XI and Customs XI, at Customs Preventive Service Club & Sports Complex situated in Federal B Area, on the occasion of 66th Independence Day. Gul Faraz Ahmed Khan, President Sindh Hockey Association and General Secretary Customs Preventive Aurangzeb Khan were chief guests on the occasion, while the match was organised by Secretary Customs Preventive Service Club Kamil Hasan.

The International Hockey Team was led by Muhammad Ali, an international hockey player

— Exclusive customs today photo

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while the Customs Hockey Team was led by its Captain Asad Qureshi.

The match was supervised by Tassaduq Jaffery and Muhammad Arshad of Sindh Police while Ajmal Pasha, Sagheer Hussain and Azeem Khan acted as jury members in the match. Customs XI won the match by 4-3 and the chief guests distributed prizes among the winner and runner-up teams.

Azeem Khan (Joint Secretary Karachi Hockey Association), Mussarat Hussain (Ex-Coach Habib Bank Limited), Zahid Shahab (President Pakistan Institute of Hockey), Tariq Khan (Joint Secretary Sindh Junior Hockey), Sagheer Hussain (Coach Pakistan Junior Academy) and others were also present on the occasion.

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AuGuST 27 - SEPTEMBER 02, 2013

Published by M. F. Riaz for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, O: I. I. Chundrigar Road, Karachi