Find us on
Daily on www.customstoday.com.pk
pAkISTAN’S FIRST INDEpTH NEwSpApER oN cUSToMS
Price Rs. 50.00
Tuesday july 23 - Monday july 29 , 2013
Vol 1 No. 23
Tariq Bajwa new FBR Chairman
Bringstothe jobawealthof expertise and experience AN ABlE oFFIcER wITH A DISTINgUISHED REcoRD oF SERvIcE, BAjwA IS SURE To IMpART A NEw IMpETUS AND MoMENTUM To FBR
FAIZA ISRAR AND SYED MUHAMMAD TAHIR www.customstoday.com.pk
T
he Federal Board of Revenue (FBR) – the anchor of Pakistan’s economic ship – has a new captain in the person of Tariq Bajwa, a public servant with a long and distinguished record of service in the finance and revenue sectors.
It is hoped that with the induction of Tariq Bajwa, there will be a distinctive positive change in the performance of FBR which has repeatedly failed to achieve its revenue targets in the last few years. Mr Tariq Bajwa has had an illustrious career in public service spanning more than three decades. He brings to the job a wealth of professional knowledge, expertise and experience which will be of tremendous help to him in fulfilling the
onerous responsibilities of his new challenging assignment. Mr Tariq Bajwa has a distinguished academic record. He did his LLB from the University of Punjab and holds an MPA degree from Kennedy School of Government, Harvard University, USA. His professional expertise is Public Policy Formulation and Implementation with specialization in public and corporate finance. Financial planning, management and administration are
See page on 03
www.customstoday.com.pk
02 exCLusiVe
JuLY 23 - 29, 2013
kuwait very keen on preventing smuggling of nuclear materials
VIENNA: Kuwait is keen on preventing nuclear material from being smuggled through its border, said an official. After his participation in the IAEA’s International Conference on Nuclear Security, Head of the Customs affairs department at Kuwait General Administration of Customs, Majed Al-Qemlas, said that his country joined the IAEA’s Database on Illicit Trafficking (ITDB) in 2008, becoming the 100th member. The ITDB enabled Kuwait to exchange information with the IAEA on smuggled nuclear materials.
Customs intelligence vigilant against smugglers SM HAIDER
www.customstoday.com.pk
C
ustoms Intelligence undertook several steps to eradicate the menace of smuggling by increasing surveillance on all routes with neighbouring countries. In an exclusive interview with Customs Today, Former Director General Customs Intelligence Khalid Mehmood said that during the period July 2012 – April 2013, the Directorate General had carried out vigorous enforcement and anti-smuggling activities making major seizures of smuggled liquor (along with the launches used for maritime transport), antiques (duly certified to relate to Gandhara Civilisation), cloth/fabrics, blankets, tyres, electronic goods, cosmetics, polyethylene granules (plastic granules), narcotics, Iranian diesel, Iranian LPG, etc. The Directorate General, he said, had also seized smuggled/non-duty paid vehicles in significant numbers, in the above-mentioned period, barring the period during which the Vehicles Amnesty Scheme-2013 (05 March – 06 April 2013) was operative. “Besides, several substantial contravention cases have been made involving import violations. Only in four major contravention cases, consisting of imported yarn, printed circuit boards, CNG cylinders and tug boats, duty/tax evasion of Rs472 million had been detected.” He said the regional offices of the Directorate General in Lahore and
Regional offices of Directorate General in Lahore and Karachi had unearthed mega sales tax fraud cases during 2009-11 involving issuance of fake sales tax invoices in the name of dummy/fictitious units enabling registered persons claim illegal input tax adjustments in order to reduce their tax liabilities, says
khalid Mehmood
Karachi had unearthed mega sales tax fraud cases during 2009-11, involving issuance of fake sales tax invoices in the name of dummy/fictitious units. “FIRs were registered in Lahore against 303 fraudulent units. Total detected amount till 30.06.2011 in Lahore was Rs10.4 billion which went up to Rs14.0 billion during the course of investigations in respect of FIRs registered prior to 30.06.2011. In Lahore, an amount of Rs3 billion has also been recovered. In Karachi, separate FIRs were registered against 6,980 units which had adjusted inadmissible input tax to the estimated tune of Rs15.19 billion. An amount of Rs1.4 billion has been recovered. Another amount of Rs 862 million is recoverable against the contravention cases adjudicated by the respective RTOs/LTUs. An amount of Rs3.13 billion is stuck up in cases undergoing litigation in the Lahore High Court, Peshawar High Court and Sindh High Court. This has slowed the recovery process,” Khalid added. Khalid said the performance of the Directorate General during the current year has been considerably positive given the delivery, in particular, in terms of the seizures of launches/boats bringing in liquor from overseas and the artifacts relating to Gandhara Civilization. “At the same time, the success of the car amnesty scheme, in part owed itself to the vigorous enforcement campaign launched by the Directorate General in coordination with various customs formations. The work will continue with greater vigour and zeal with a view to helping the Board achieve its targets.”
DIREcToRATE gENERAl pERFoRMANcE IN jUlY 2012-ApRIl 2013
ANTI-SMUgglINg (EXclUDINg NDp vEHIclES) No of cases
value of seized goods
387
Rs 1,149m
TEXTIlE SEcToR SEIZURES Description
Quantity
cIF value
1,460,526 Yards
Rs 114.70m
Blanket
16,947 Nos
Rs 25.10m
Yarn
24,400 Kgs
Rs 10.6m
Fabric
ANTI-SMUgglINg (NDp vEHIclES) No of cases
value of NDp vehicles
422
Rs 532.49m
ANTI-SMUgglINg (SEA opERATIoNS) Description of goods
value of goods
value of launches
Liquor 19,014 Bottles &Beer 74,090 Cans
Rs 113m
Rs 3.0m
Liquor 24,963 Bottles & Beer 57,408 Cans
Rs 153m
Rs 3.0m
Liquor 25,541 Bottles & Beer 85,811 Cans
Rs 145m
Rs 2.5m
HsD Oil 9000 Liter & Petrol 710 Liters
Rs 1.10m
Rs 1.8m
HsD Oil 21,382 Liters
Rs 2.37m
Rs 2.5m
HsD Oil 32,469 Liters
Rs 3.60m
Rs 3.0m
HsD Oil 22,700 Liter & Lube Oil 320 Liters
Rs 3.04m
Rs 8.5m
ANTI-SMUgglINg (‘FAlcoNS’ – ATTEMpT To SMUgglE oUT) No of Falcons
value
36 Falcons
Rs 36m
ANTI-SMUgglINg (ANTIQUES) No of cases
value
1
700 objects/artifacts
2
Value yet to be determined by Archeology Department
ANTI-SMUgglINg (NARcoTIcS cASES) No of cases 17
charas (in kgs)
opium (in kgs)
Heroin (in kgs)
2,112.8
99
31.285
cUSToMS coNTRAvENTIoN cASES No of cases
Duty & Taxes
127
Rs 1,195.043m
REvENUE REAlIZED (cUSToMS INclUDINg AUcTIoNS) 2012-13 (july-April)
2011-12 (july-April)
(Rs in Million)
(Rs in Million)
381.78
409.005
REvENUE REAlIZED (SAlES TAX - oN pREvIoUS cASES) 2012-13 (july-April) (Rs in Million) 381.78
2011-12 (july-April) (Rs in Million) 409.005
www.customstoday.com.pk
NATiONAL
JuLY 23 - 29, 2013
03
lanka customs nabs pakistani smuggling medical equipment and drugs
COLOMBO: Sri Lanka Customs Sunday arrested a Pakistani national who attempted to smuggle equipment used for circumcisions and drugs prescribed for psychiatric patients. The Customs seized 1,000 equipment used for circumcisions and 6,000 tablets used for mental illnesses parceled as a gift pack. The 33 year old Pakistani national has a resident visa in Sri Lanka and is married to a Sri Lankan woman. The Customs has noticed that he has been traveling between the two countries regularly.
From page 01
his forte.During more than 33 years of public service, he has held important positions in various government departments and handled a number of sensitive assignments with distinction. Before joining the Punjab government, Mr Tariq Bajwa served as Joint Secretary, the Ministry of Industries and was associated with a number of high profile projects to speed up the industrialization process in the country. Since joining the Punjab government in September 2010, Mr Tariq Bajwa has been the sheet anchor of the Finance Department in Punjab. During the last three years he has played a key role in formulating budgetary proposals and estimates as per the policy guidelines of the government and public sector development needs. How crucial a role he has been playing is clear from the fact that despite frequent reshuffle of higher bureaucracy he has not been moved from the Finance Department. As an able and devoted civil servant known for hard work and honesty, Mr. Tariq Tariq Bajwa earned the trust of Chief Minister Nawaz Sharif who kept him on board in conceiving and implementing a number of vital Punjab government projects in the energy, transport, service reform and other sectors. When Shahbaz Sharif visited Turkey last year to solicit Turkish investment in the energy sector, Mr Tariq Bajwa was appointed the focal person for discussing project financing with Turkey’s EXIM Bank and finalizing related matters. It is pertinent to mention here that former Caretaker Punjab Chief Minister Najam Sethi paid rich tributes to Tariq Bajwa saying that his positive attitude had changed his
Chairman FBR Tariq Bajwa at his office desk. concept about a finance secretary. He said that Tariq Bajwa had extended full cooperation to him at every stage and adopted measures for the benefit of the common man, adding that Provincial Secretary Finance was a kind hearted person and his cooperation in social sector programmes had been commendable. He also expressed satisfaction over the robust financial position of the province. Prime Minister Nawaz Sharif decision to induct Tariq Bajwa as FBR Chairman shows his concern over the dismal record of the country’s main revenue collection machinery. FBR once again missed the annual
—exclusive Customs Today photo revenue collection target by huge margin of Rs 430 billion during the financial year from July 2012 to June 2013 despite imposing new taxes worth billions of rupees.The FBR has provisionally collected taxes worth Rs1,940 billion during the last financial year 2012-13. FBR has been struggling to achieve the revenue collection target and revised it several times. The budgetary target of Rs2,381 billion was revised downward to Rs2,191 billion for 2012-13 and further slashed to Rs2,050 billion and then to Rs2007 billion. In a bid to achieve the revenue target,
three tax amnesty schemes were announced, but FBR failed to achieve the revised target of Rs2007 billion. The appointment of Tariq Bajwa as FBR Chairman is clearly a part of Prime Minister Nawaz Sharif’s plan to bring in a team of competent, dedicated and honest bureaucrats to run the affairs of country. It is hoped that Tariq Bajwa would be given a free hand in collecting Rs2,475 billion tax target for financial year 2013-14. Given his past record, Tariq Bajwa is sure to give a new sense of direction to FBR and provide the kind of leadership needed to achieve the desired results.
www.customstoday.com.pk
04 NATiONAL
JuLY 23 - 29, 2013
US customs seizes banned African elephant ivory bracelet
BALTIMORE: US Customs and Border Protection (CBP) at BWI seized a carved African elephant ivory bracelet. The CBP agricultural specialists saw a passenger returning from a trip to Liberia, and noticed the bracelet. They transferred the passenger to a secondary inspection and confiscated the bracelet. From the incident the CBP decide to contact the U.S. Fish and Wildlife Service (USFWS) in order to determine what materials the bracelet was made of. USFWS inspector determined that the bracelet was made of banned ivory, and was turned over to the inspector.
cUSToMS ToDAY REpoRT www.customstoday.com.pk
T
he government has proposed several measures in Budget 2013-14 regarding Customs for providing relief to general public and encouraging growth and investment, besides reducing the cost of doing business. While presenting the Budget 2013/14, Finance Minister Ishaq Dar had elaborated that Pakistani import regime over the decades had become fraught with the complex system of discriminatory exemptions and concessions and every year the national exchequer suffered a loss of Rs100 billion on account of these exemptions. “In today’s world of free trade and level playing field, this practice could not continue,” he said and added that the government had to adopt a single tax and tariff system by abolishing the culture of SROs. Following are the relief measures relating to Customs tariff structure in Budget 2013-14: Further reduction in duty & taxes on Hybrid Electric Vehicles (HEVs), ranging from 25% to 100%, according to their engine capacity. Duty free import of “bio re-absorbable vascular scaffold” (heart stents) to decrease their cost for heart patients. Exemption of duty and sales tax on energy saving tubes, presently with 20% duty, to encourage the use of energy efficient electrical equipment. Streamlining and deregulation of the procedure for exempting import of renewable energy resources compatible equipment to promote their use and incentivise investment in this field. Reduction of customs duty on office or school supplies from 25% to 20% to lower their price and reduce classification disputes.
legislative changes:
customs tariff:
budgetryreliefmeasures
— exclusive Customs Today photo Duty and sales tax free import of solar submersible pumps presently @ 20% duty to encourage use of energy efficient electrical equipment. Reduction of duty on water treatment & purifying machinery and equipment from 20% to 15% to make them accessible to general public. Streamlining the procedure for re-import of machinery & equipment sent abroad for repair etc by industrial importers. Reduction of customs duty on Medium Density Fibre (MDF)
Board. Streamlining of tariff structure to incentivise growth and investment. Creation of separate PCT codes of newly indigenized vehicles to incentivise local auto industry. Creation of a new PCT code for classification of satellite phone and water dispenser to reduce classification disputes and improve import statistics. Editorial correction of description and classification in the tariff. Regulatory control on exempt/concessionary import of agri-
cultural machinery, tourism sector, packaging industry and pharmaceutical sector is being strengthened to ensure that the benefit is availed by bona fide importers only. Editorial changes for simplification of concessionary SROs is also being made to remove duplications, spelling errors or redundant entries. Revenue Measure: Increase in duty on betel nuts from 15% to 20% and betel leaves from Rs200/kg to Rs300/kg to discourage their use on account of adverse health effects.
Amendment in section 2 (la) of the Customs Act, 1969 will provide legal cover for filing of transhipment goods declaration in Computerised Clearance System. Introduction of new section 3DDD in Customs Act, 1969 to provide legal cover to the Directorate General of Input Output Co-efficient Organization (IOCO). Amendment in section 14-A of the Customs Act, 1969, whereby terminal operators/custodian of goods will be bound to entertain the delay and detention certificates issued by customs authorities for waiver of demurrage charges. This measure will mitigate the financial hardship faced on this count by genuine importers. Amendment in section 14-A of the Customs Act, 1969 will require the custodian of goods/terminal operator to provide adequate security and residential accommodation to the customs staff. Sub-section (4) of section 32 empowers the appropriate officer to determine payable amount. Presently this section does not cover the liability found on account of Post Clearance Audit. Inclusion of sub-section-3A in sub-section 4 will fulfil this legal requirement. Amendment in section 81 of Customs Act, 1969, to delete Post Dated Cheque as an acceptable security against provisional assessment. Section 80-A appearing in subsection 2 of Section 83 is being proposed to be omitted. The reference of section 80-A under section 83 is meaningless since section 80-A is already omitted. Amendment in section 179 of the Customs Act, 1969 will fix the adjudication powers in case of exported goods in relation to their FOB value as against duty and taxes in case of imported goods.
www.customstoday.com.pk
JuLY 23 - 29, 2013
ADVeRTiseMeNT 05
www.customstoday.com.pk
06 NATiONAL
JuLY 23 - 29, 2013
karachi customs seizes 4kg gold
KARACHI: Pakistan Customs had foiled a bid of gold smuggling after recovering 4-kg gold from a Pakistani passenger Sohail Musa, who arrived from Dubai to Pakistan by Emirates Airline EK-600. The customs officials searched him and his baggage minutely and recovered 4-kg jewellery, which was partly concealed in baggage and wrapped around his body. The customs officials seized the gold and arrested the passenger.
vehicles’ amnesty scheme
Misuse causes multi-billion rupees loss to exchequer puterised National Identity Card (CNIC). “We have found during the investigation www.customstoday.com.pk by scrutinising small sample data that 61 CNICs were used for clearing 1405 vehicles under the amnesty scheme,” Dr Shoaib Suddle said. According to findings of the FTO, Syed Ameen Shah, a resident of Pashin cleared 52 Hino trucks from Karachi, Habib Ullah from Quetta cleared 51 Toyota Hiace van from Karachi, Wali Mohammad cleared 50 Mazda trucks and Abdul Wali, a resident of Chaman, cleared 50 Toyota Hilux pickups. It was found that almost one-third vehicles were cleared without physical entry of vehicles into the country as investigators proved that 407 vehicles were cleared which were still lying in auction yard located at Tokyo. Of 407 such vehicles, 242 were cleared by Model Customs Collectorate Appraisement he misuse of vehicles amnesty Karachi and 42 were cleared in Faisalabad. scheme has caused multi-billion ru- If this sample was applied on all cleared vepees loss to the national exchequer, hicles of over 49,000 then 16,000 vehicles former Federal Tax Ombudsman (FTO) Dr were cleared which did not even enter the Shoaib Suddle disclosed at a press confer- country. ence Answering a query, he said the normal Shoaib Suddle said that he had found duty required to pay is Rs2.1 million for through investigation that the Customs De- clearing a vehicle but the amnesty scheme provided an incentive for clearing a vehicle by just Habib ullah from Quetta cleared 51Toyota Hiace vans from Karachi paying Rs0.3 million so the loss to national exchequer stood at Rs 1.8 million in just one example. Under vehicle amnesty scheme, the FBR cleared 49,462 vehicles from March 5 to April 6, 2013 and fetched Rs15.814 billion. Another 887 vehicles were reported under process when the extended date of April 6 expartment had cleared 52 vehicles apparently pired. During the last six schemes implein collusion with FBR’s staff on one Com- mented from 1998 to 2007, the total number
cUSToMS ToDAY REpoRT
T
T
Customs modernisition facilitates importers he Customs Department has introduced improved systems including Weboc, Pax and Green Channel in order to modernise its working. This was revealed by Customs spokesman Qamar Thalho while talking exclusively to Customs Today. Referring to Weboc (Web-based One Customs), Thalho said modern technology was being introduced to facilitate the importers. With the help of this facility, the importers could fill up their GDs (Goods Declaration) on web and submit it to the Custom Department, he added. “By
using Weboc, the importers can conveniently submit their GDs online and the Customs Department will process it further", he added. Responding to a query, Thalho said the Customs Department would further expand such facilities for the convenience of the importers. He said the Customs Department had also introduced Pax (Pakistan Automated Computerised System) in order to enhance its revenue collection, while the Green Channel at airports had been installed in order to facilitate the pas-
sengers. Thalho said the Customs Department had five collectorates including Preventive and Enforcement, Appraisement, Pax, Export and Port Qasim to collect the revenues. “Prevention Collectorate is working to prevent the smuggling and gets its revenue from collecting duty on oil and diesel", he added. He said revenue recovery of the department heavily depends on Appraisement Collectorate and Pax Collectorate, and these collectorates are considered as the revenue engine of the Customs Department.
According to findings of the FTO, syed Ameen shah, a resident of Pashin cleared 52 Hino trucks from Karachi, Habib ullah from Quetta cleared 51Toyota Hiace vans from Karachi,Wali Mohammad cleared 50 Mazda trucks and AbdulWali, a resident of Chaman, cleared 50Toyota Hilux pickups.
of legalised vehicles from Peshawar Collectorate stood at 8699 but the number of vehicles legalised under the amnesty scheme of 2013 stands at 17,381, which is almost double as compared to all previous schemes. The FTO had taken suo moto notice on April 1 on the basis of information that many vehicles were allowed to clear which were standing at the auction stage in Japan. “Such scandalous recklessness on the part of Customs indicated that the department was totally impervious to change, even in the aftermath of ISAF scam – the mother of all scams,” Dr Suddle stated. He said that they traced 18 vehicles which were shipped from Japan for Dubai after expiry of amnesty scheme but were cleared by the Customs before their arrival in Pakistan. “This takes the total number of so far confirmed ghost vehicles to 425 which had not yet arrived in Pakistan but were cleared during the amnesty,” he stated. This amnesty scheme, he said, allowed reduction in duty and taxes in respect of smuggled vehicles up to 60 percent for cars and 72 percent for other vehicles.
www.customstoday.com.pk
NATiONAL 07
JuLY 23 - 29, 2013
Two Indonesian women caught for smuggling syabu
PRAI: Customs officers have arrested two Indonesian women who attempted to smuggle into the country 9.19 kg of methamphetamine (syabu) valued at RM1.75 million via the Penang international airport in two incidents. One of the women, aged 32, was arrested when she tried to bring in three kilogramme of the drug valued at RM570,000 stored in four plastic packs in a special compartment in her luggage.
collectorates under lahore customs collect Rs32680.58m overnment of Pakistan Office of Chief Collector (Central) has collected customs duty of Rs 32680.58 million during financial year 2012-13, Rs1772.53 million more as compared to Rs30908.05 million during financial year 2011-12. According to details, Lahore Customs Appraisement section collected customs duty totalling Rs15892.73 million while Lahore Customs Preventive section collected Rs3868.64 million during FY 2012-13. Other Collectorates of Customs which come under Customs House Lahore, the Collectorate of Customs Multan collected Rs10364.61 million while Faisalabad collected customs duty totalling Rs2554.60 million. The Lahore Customs Preventive and Appraisement wings and Collectorate of Faisalabad showed improved performance while Multan Collectorate’s performance was not up to the mark as the Collectorate collected Rs1531.43 million less during 2012-13 as compared to the corresponding period of FY 2011-12. The Lahore Appraisement section collected Rs2190 million more as compared to the previous year 2011-12. similarly, the Lahore Customs Preventive section added Rs397.03 million more as compared last year. it is said the duty collection at Multan Customs Collectorate fell due to weak surveillance and checking of goods. On the other hand, the Lahore Appraisement, Preventive and Faisalabad Collectorates remained more efficient through strict surveillance and checking of goods at the dry ports and airports. The performance of the Lahore Customs improved manifold as compared to FY 2009-10 due to strict measures including registering FiRs and punishing the smugglers of illegal goods and articles.
G
FBR starts intensive efforts to broaden tax base cUSToMS ToDAY REpoRT www.customstoday.com.pk
T
he Federal Board of Revenue (FBR) has started intensive efforts to broaden the tax base by using the National Data Warehouse (NDW) and has finalised a detailed implementation plan in this regard. The use of the National Data Warehouse will help the Board in identifying the new taxpayers who can be brought into the tax net. The NDW would be used in various ways for this purpose, including its usage for acquisition of data through profile loading and data mining. Once this is done, the respective RTOs would be sent the details and electronic profiles of these potential taxpayers so that BTB notifications can be issued by the tax commissioners concerned. All the monitoring and control of the process would be automated and system based. The FBR has also upgraded its call centre facility for the facilitation of the taxpayers. Linkages with 3rd party sources, including provincial revenue authorities, have also been established for effective implementation and monitoring. To strengthen the enforcement mechanism for the BTB plan, various decisions have been made by the FBR which include initiation of statutory proceedings against per-
sons who fail to respond to Outreach notifications through issuance of notices under section 114 of Income Tax Ordinance, 2001. In case of a taxpayer’s persistent non-compliance, provisional assessment would be finalised and the taxpayer would still have the option to file a return
accompanied by a wealth statement and reconciliation of wealth statement within a period of sixty days whereby the provisional assessment order will be automatically vitiated. If the taxpayer does not file the return and required documents within sixty days, the tax liability
raised as per the provisional assessment order would become final and would be recoverable and, if necessary, penal and prosecution proceedings would be initiated, which may culminate in imprisonment and imposition of fine, in selected cases for creating credible deterrence.
www.customstoday.com.pk
08 FeATuRe
JuLY 23 - 29, 2013
SoHAIl RAB kHAN
www.customstoday.com.pk
T
he Karachi International Container Terminal (KICT), the country’s one of the leading container terminal operators, has been operating since 1998. It is located within the Karachi Port covering a total area of 26.03 hectares. The KICT has five berths equipped with modern container-handling equipment and each berth is 973 metres in length. Nine container quay cranes are fully operational at the KICT for offloading the containers. It has also 29 rubber tyred gantry cranes and six forklifts. The KICT has eight empty handlers and 10 reach stackers. It also contains 58-yard tractors, 75-yard chassis and 528 reefer plugs. The KICT is a member of the Hutchison Port Holdings (HPH) Group, a subsidiary of the multinational corporation the Hutchison Whampoa Limited (HWL), which is the world’s leading port investor, developer and operator. One of the officials at the KICT told Customs Today that they are committed to enhance the satisfaction of customers by providing reliable, effective and safe terminal operations. He said the KICT administration, with its continuous efforts and efficiency in services at all levels, has placed world’s leading terminals. The KICT has always taken part in activities that have changed and improved lives especially those of children. To express long-term commitment to the community, the KICT administration has been extending financial assistance through different programmes including construction of educational centres. One of such examples is Lyari Model School which is located in the centre of Lyari Town, an under-developed locality situated in western Karachi where most of the residents live below the poverty line. The parents of most of 600 students at the school find it difficult to make both ends meet and they can’t afford to spend on children’s education. Unfortunately, Lyari Model School was overlooked by NGOs due to its proximity to posh areas of Karachi. The KICT stepped in to help the school and its students. The terminal provides the school with money it needs to impart free tutoring, teaching materials and uniforms as the KICT sees this as an investment for the better future of Lyari Town. The KICT has also introduced SOS Children Village located in Malir area. It is a private social welfare organisation dedicated to the care of orphans and abandoned children. It provides children with a home and family-like environment. Every effort is made to enrich children with strong moral values, modern education and skills that will enable them to become productive citizens. The Village has 15 family houses to shelter children between the ages of 3 to 22. Currently, 186 children are living in these family houses and the SOS administration is trying to provide them with an environment where they feel protected.
Karachi international Container Terminal
AFAcIlITYpAREX The children are given an opportunity to participate in physical activities and there is a proper cricket ground and a basketball court. However, the children were unable to play basketball as the court was in bad shape and needed refurbishment. The original floor of the court was completely broken and needed to be reconstructed. With the belief that physical activities are an integral part when it comes to proper upbringing of children, the KICT took prompt initiative and renovated the basketball court. The construction of the basketball court will help the children to utilise their time in a constructive manner. Building a basketball court for these deprived children is a small step towards a
KiCT is to enhance the performance through the commitment of management, the promotion of personal accountability, the implementation of staff training programmes and the measurement of performance based on occupational safetyrelated criteria
better future generation. Furthermore, one of the KICT’s primary goals is to maintain the health and safety of its employees and other port workers. It is committed to ensure that the employees and contractors work together in an environment that is as free of occupational hazards as possible and follow occupational safety laws in letter and spirit. The KICT is to enhance the performance through commitment of management, promotion of personal accountability, implementation of staff training programmes and measurement of performance based on occupational safety-related criteria. It also promotes safety culture through
www.customstoday.com.pk
FeATuRe 09
JuLY 23 - 29, 2013
The combination of SpARcS and EXpRESS allows for computerised, real-time tracking of the cargo for the entire time that a container is at the terminal
XcEllENcE a terminal public address system, broadcasting information about safety rules and regulations in different languages including Urdu, English and Pushto. The KICT complies with all laws and regulations to reduce its impact on the environment. It also promotes environmental protection habits among its staff members. The KICT uses Synchronous Planning and Real-time Control System (SPARCS) software from Navis to help optimise labour utilisation, manage yard space and deploy equipment. Vessel plans, received as EDI documents, are imported directly into the database allowing vessel and yard planners to plan operations on a GUI interface concurrently and in real-time.
SPARCS keeps equipment idle time and the number of handlings per container to a minimum. This helps maximise terminal productivity and profitability. EXPRESS software helps the KICT manage business transactions according to unique procedures and rules. The dynamic reporting capabilities built into EXPRESS enable terminal managers to track performance, increase profitability and improve customer service. This eliminates the need for paper-based tracking and reduces human errors as all transactions are recorded and invoiced accurately in real-time. The combination of SPARCS and EXPRESS gives a computerised and real-time tracking of the cargo for the entire time
that a container is at the terminal. This is facilitated through real-time tracking by radio data terminals in the yard. Other IT advances allow the KICT to work closely with the shipping community and port authorities. Using an Electronic Data Interchange (EDI), BAPLIE, CODECO, COARRI, INVOIC and IFTMBC allows the KICT to send information electronically to customers in a timely manner. Other state-of-the-art technology at the KICT includes a wireless LAN for monitoring quay cranes, IP telephony and VHFs for effective internal communications, a highly reliable data backup solution and disaster recovery solution.
www.customstoday.com.pk
10 eDiTORiAL
JuLY 23 - 29, 2013
Founder & Chairman Zulfiqar Ali editor Nasim Ahmed Regional Director Turab Zaidi editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-324-4404694 www.customstoday.com.pk Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, siddiq Trade Centre, Gulberg, Lahore
EDIToRIAl
A community paper ustoms Today is an independent newspaper focussing on the customs community. This community is a vital part of the taxation machinery which generates the revenue needed by the government to run its day-to-day affairs. The customs community comprises customs officers and their families, importers and exporters, customs clearing agents and, at a wider level, people impacted by the government's trade policy and FBR’s customs rules and regulations and sROs. Our aim is to become the authentic voice and face of the customs community. We aim to make our newspaper a kind of facebook, so to say, where members of the customs community can socially meet and interact. We will publish news and pictures of social events and gatherings which members of the customs community will look forward to read every week. Customs Today will also highlight the problems of the customs community such as housing and schooling facilities for their children. We will ventilate their grievances and do our best to have them redressed. Customs Today will highlight the achievements of the customs department collectively as well as the successes of individual officers in raising revenue for the government. The customs department is the guardian of Pakistan’s economic borders. We will project its image from this perspective and emphasize its role in regulating and supervising the flow of imports and exports for balanced economic growth. Our policy is to remain positive and helpful in the coverage of the customs department and its activities, operations, events and news. While writing about problems we will be constructive in our approach. The overall aim is to serve the larger interests of the country and the economy. There are lots of useful and interesting information relating to customs that largely go unreported now. Customs Today will provide the relevant-based and solution-oriented reporting will be our forte. At the same time, in-depth analyses of policies and decisions relating to the customs department will be undertaken to educate the people on tax matters. We will also publish reviews and simplified explanations of difficult concepts and topics. in short, we aim to make Customs Today such a powerful, reliable and influential medium of communication that the customs community as well as general readers will increasingly come to depend on it for the latest news and information about what is happening in this vital sector -nationally and internationally. Customs Today is available online 24/7.
C
Kashgar-Gwadar economic Corridor
A new gateway to economic prosperity NASIM AHMED
www.customstoday.com.pk
T
he Pak-China relationship is a many-splendoured phenomenon. It is a relationship of which there are few examples in the world. It is a relationship that has kept growing from strength to strength in the crucible of time. The changing dynamics of international relations have not affected its basic strength and structure, nor has the evolving scenario of regional political configuration been able to deflect the two countries from their chosen path. The ties have been further strengthened by Prime Minister Nawaz Sharif’s latest visit to China. The visit has yielded a rich harvest of agreements. The centrepiece of the agreements is the one on a long-term economic corridor to be built at a cost of around $18 billion. The 2,000-kilometre road and rail link will connect the northwestern city of Kashgar to Gwadar port, opening up new vistas of trade and economic development between the two countries Another high mark of the visit is the memorandum of understanding signed by the two countries pertains to the construction of the Lahore-Karachi Motorway with Chinese assistance. For this purpose, a memorandum of understanding has been signed, following which
Prime Minister Nawaz has ordered the concerned departments to complete the project within two-and-a-half years. Nawaz Sharif said: “Once this project is completed, travel time between Lahore and Karachi will be drastically reduced … this will ultimately promote business activity in the region,” adding that all four provinces would benefit from it. The Lahore-Karachi Motorway would also be connected to the Kashgar-Gwadar highway as well. The successful implementation of the Gwadar-Khunjerab-Kashgar rail and road network will give a big boost to Pak-
while the distance from Dubai to Shanghai via the Indian Ocean is about 9,000 miles. Needless to say, on a long-term basis the project holds immense potential for new trade opportunities for Pakistan, as China will be the next big consumer market for Pakistani products in the coming years. According to experts, the KashgarGwadar economic corridor will create thousands of jobs and promote economic growth and bring prosperity in Balochistan, a historically underdeveloped province. Pakistan will also receive a
The successful implementation of the Gwadar-Khunjerab-Kashgar rail and road network will give a big boost to Pakistan’s struggling economy, besides helping China to secure oil supply and commercial routes on the indian Ocean. istan’s struggling economy, besides helping China to secure oil supply and commercial routes on the Indian Ocean. The project will route Chinese goods destined for the Middle East and other global destinations from Urumqi through Gwadar. It will save the Chinese half of their current voyage time and secure their oil supplies and commercial routes. It may be mentioned here that the distance from Dubai to Khunjerab is 3,300 miles,
transit fee for all goods passing through its territories. Trade between Pakistan and China has expanded rapidly in recent years, reaching a figure of $ 12 billion last year. As part of an effort to boost the annual trade value between the two countries to $20 billion, Pakistan and China have now agreed to adopt new promotional measures, including the construction of economic and industrial cities in Gwadar and other parts of Pakistan.
www.customstoday.com.pk
isLAMABAD 11
JuLY 23 - 29, 2013
£1.3 million drugs seized
NEW JERSEY: Jersey Customs and Immigration have seized cannabis worth a total of £1.3 million in the last week. They discovered 40 kilos of the drug in a concealed car that had arrived on the Condor fast ferry from Poole. A 27year-old British male has been charged with drug trafficking offences for this seizure. On Tuesday, a long term operation resulted in 72 kilos of cannabis being found in a commercial vehicle in St Lawrence.
FBR to establish Help Line to catch illegal cigarette makers cUSToMS ToDAY REpoRT www.customstoday.com.pk
T
he Federal Board of Revenue (FBR) will establish Help Line for obtaining information about cigarettes’ illegal movement, stocks and manufacturing facilities and operation will be launched against this menace. The FBR’s Intelligence and Investigation of Inland Revenues (IR) seized 36 million sticks of different brands of cigarettes during the last financial year 2012-13 ended on June 30, 2013, which was the highest ever seizure in the history of the FBR. Earlier, in 2009, the Customs Intelligence and all Collectorates had seized 30 million sticks of illegal cigarettes. The FBR, an official said, was expecting revenue collection of more than Rs 81 billion through taxation on cigarettes in the current financial year and for this purpose, measures would be taken against those involved in its illegal business. According to official documents, the FBR’s I&I of IR conducted one of the biggest operations in Faisalabad, in pursuance of credible information and surveillance of suspected distributors/wholesalers/stockists of cigarettes. The authorised team under supervision of Mrs. Farzana Gohar Ali visited godowns at Sir Syed Town Dijkot Road Faisalabad on 3-7-2013. During physical stock taking, 2.483 million sticks of different brands of cigarettes found stored in these two godowns in towns of Faisalabad. The FBR team demanded sales tax invoices/goods declarations
showing payment of duties and taxes of stored cigarettes from the owners but they failed to furnish anything. In the absence of tax payment, it was, prima facie, found that the counterfeit/non duty paid cigarettes were unlawfully stored in the godowns. Under the provisions of tax laws, the FBR team seized 1.8 million sticks of Melburn, 350,000 of Chance, 80,000
FBR team seized 1.8 million sticks of Melburn, 350,000 of Chance, 80,000 of Red Classic, 60,000 of Olympic, 49,000 of Gold street, 80,000 of Classic, 24,000 of Kisan and 10,000 sticks of Hero brand
of Red Classic, 60,000 of Olympic, 49,000 of Gold Street, 80,000 of Classic, 24,000 of Kisan and 10,000 sticks of Hero brand. According to preliminary inquiry report, different brands are manufactured by three different companies and tentative duty/taxes of seized goods are standing in the range of Rs 1.9 million.
importers, transporters face security issues
T
cUSToMS ToDAY REpoRT
www.customstoday.com.pk he Importers and Transporters of Goods Association (TGA), Karachi, has expressed deep concern over inadequate security in and around Pakistan International Container Terminal (PICT) and Karachi International Container Terminal (KICT), where thousands of containers are off-loaded on regular basis and around 6000 to 7000
vehicles set off daily along with goods. Khursheed Alam, Vice President Transporters of Goods Association told Customs Today that the transporters were among the front-line sufferers in a deteriorating law and order situation, as their loaded vehicles were looted at gun-point. He said District West was the worst among all five districts where the law and order
situation was badly affected and looting of the loaded vehicles at gun-point had become a common phenomenon. “Our dozens of loaded trucks have been looted by armed men from East and West wharfs due to inadequate security”, he added. Alam alleged that police was patronising the criminal elements, as the transporters had registered several complaints
against looting incidents of their vehicles but no action had yet been taken. “We have also made written complaints to the police highups including Inspector General of Police (IGP) and Deputy Inspector General of Police (DIGP) but they have also not taken any step to beef up the security of East and West wharfs.” He alleged that the Jackson and Docks police officials were also
involved in patronising the criminal elements. One of the importers, Fareed Awan, told this scribe that he had suffered a loss of Rs 2 million as his two rice-laden trucks had been looted at gun-point in SITE-B area. “I have registered a complaint in the concerned police station but no action has been taken to recover the looted goods”, he added.
www.customstoday.com.pk
12 LAHORe
JuLY 23 - 29, 2013
crying child alerts customs officers to human smuggling attempt
NEW YORK: US Customs and Border Protection (CBP) officers arrested 34-year-old Mayra Rodriguez-Saenz on Friday. Court records released Thursday show that Rodriguez-Saenz was with a 3-year-old boy who was crying and refused to get close to her. Customs officers learned that the boy was an illegal immigrant from Oaxaca and that Rodriguez-Saenz was supposed to get paid $800 dollars to take him to Houston.
customs House Nabha Road gets a face-lift With a staff of 250 to 300, the Customs House controls operations of its sub-offices including airport, dry ports in Lahore M Hayat
www.customstoday.com.pk
T
he Customs House Nabha Road, a four-storey building and hub of all customs related activities, has been given a new face lift by renovation work done by NESPAK. NESPAK A&P Division Lahore completed renovation of the Customs House Nabha Road, having covered area of 9,006 sqm. The renovation work included documentation and assessment of the existing building, detailed design, tender documentation and construction of this Rs 189 million project, awarded by the Federal Board of Revenue, Islamabad. According to NESPAK, the interior spaces were planned keeping in view the structural constraints of the building. False ceilings were designed to cater to air-conditioning and lighting needs. Most modern and easy to maintain finishes were proposed in the interior spaces. The external facade was given a contemporary face lift by adding structural features like parapets and entrance porticos. The site planning was done keeping in view the location of existing trees and storm water drainage issues. Parking sheds were also designed for cars and motorcycles. The Customs House Nabha Road is administrating the working of its subordinate offices at the Allama Iqbal International Airport, Wagha Border, Dry Port at Baghbanpura and Thokar Niaz Baig. The major departments operating at the Customs House include Collector of Customs, Model Customs Collectorate, Appraisement, Preventive, Collector of Appeal, Directorate of Post Clearance Audit (PCA) and Adjudication. All of the departments work under the Customs Act 1969. Collector
of Customs collects customs duties, Appraisement assesses customs duties, Preventive looks after import and export traffic at airport and dry ports, Collectorate of Appeals entertains high profile cases which are challenged within three months, PCA conducts internal audit while adjudication deals with goods and
articles including confiscated nonduty paid vehicles. The Lahore Customs House is run by a Chief Collector along with a collector, an additional collector, deputy collectors, assistant collectors, superintendents, deputy superintendents, inspectors, hawaldars, constables, peons and
sweepers. As many as 250 to 300 staff is working at the Customs House to control operations of its sub-offices including airport, dry ports in Lahore while Faisalabad and Multan have nothing to do with the Lahore Customs House, however, both Faislabad and Multan customs of-
fices report to the Chief Collector in Lahore. The lower staff including drivers, peons and constables are facing problem of residence. “We spend a big part of our salaries on rented houses and it becomes impossible for us to discharge our other obligations in a meager income paid by the government. The government should establish housing colonies for the lower staff like the one for the officers,” a customs constable said. The Customs House Nabha Road is located in an old building. The construction of the Customs House was started in 1958 and the building was inaugurated by the then Collector Ejaz Elahi Malik in 1961. The Customs House has immense importance as it adds a big chunk of revenue to the national exchequer by collecting customs duties. The building due to extensive wears and tears had lost its grandeur. The renovation work of the Lahore Customs House building was completed during the first month of the current year and inaugurated by former FBR Chairman and Secretary Revenue Division Ali Arshad Hakeem.
www.customstoday.com.pk
NeWs
JuLY 23 - 29, 2013
13
whole-car airfreighting services open at Beijing Airport
BEIJING: The whole-car import station at Beijing Capital International Airport (BCIA) is expected to begin operation in July, making the capital the first import port for airfreighted finished vehicles in China. Transnational companies, embassies, auto distributors and high-end consumers can now take care of the customs' procedures for imported whole cars in the city, Zhao Weizhen, director of the Clearance and Supervision Division of Beijing Customs, said.
Fall in rupee value increases import bill by cUSToMS ToDAY REpoRT www.customstoday.com.pk
M
assive fall in rupee value against US dollar during the last fiscal year 2012-13 increased the imports value in term of rupees and growth on imported items during the last fiscal year by 0.19 percent. As per data gathered from the Pakistan Bureau of Statistics (PBS), the imports of the country were $41 billion during last 11 months of the fiscal year 2012-13 against $40.93 billion during the same period of the fiscal year 2011-12.
The imports recorded by Customs authorities grew by 12.43 percent to Rs4474.45 billion during the last fiscal year from
0.19pc The income tax, however, posted 22.5 percent growth to Rs102.554 billion last year from Rs83.716 billion during fiscal year 2011-12. The growth in income tax mainly drives from enhancement
DcAs waiting for their promotion despite FST orders A
cUSToMS ToDAY REpoRT www.customstoday.com.pk
s many as 26 officials working as Data Control Assistants (DCAs) for last 30 years in the office of the Chief Coordinator, Computerisation and Programming Department, Custom House Karachi are waiting for their promotions from BPS-10 to BPS-16.
DCAs in the Custom House Karachi have expressed deep anxiety while talking to Customs Today over the noncompliance of the orders issued by the Federal Service Tribunal (FST), Islamabad on Jan 1, 2013, in which it stated that the promotions of 26 DCAs are due from BPS-10 to BPS-16. The DCAs told this scribe that they submitted the case for their promotions in the year 2010 in the FST and the FST proceeded their case and issued its detailed judgment on Jan 1, 2013, in which it asked the department concerned to upgrade the posts of those Data Control Assistants (BPS-10) to Data Processing Assistants (BPS-16).
However, after passing seven months to the judgment, the DCAs are still waiting for their promotions. The DCAs further informed that they had been recruited in 1979, 1982 and 1986 in the Computer Bureau Department, Custom House Karachi. However, those who were appointed later, they had been promoted to BPS-14 and then BPS-16 on the basis of nepotism. “We all are experienced and educated and meet with every criteria of the promotion, but the authorities concerned do not pay any heed towards our issues”, they maintained. “We have prayed for the promotions from Data Control Assistants (BPS-10) to Data Processing Assistants (BPS-16) before the FST, but the negligence of the authorities concerned is a matter of anxiety for us”, they added. They said that in this delaying process, Javed Iqbal Siddiqui (BA), a DCA died due to heart attack in May 2013. They demanded of the authorities concerned to take notice in the delay of the promotion process.
Rs3979.682 billion in the preceding fiscal year. The dutiable imported items were recorded at Rs1750.238 billion last year against Rs1629.18 billion during 2011-12. The authorities in the Customs Department said the slow pace in duty collection by Customs was due to tariff rationalisation in the last Federal Budget under which the government reduced tariff on import of various products. Besides, the oil product, which brings the major portion of revenue for the FBR, also failed to show nominal growth during the
last fiscal year. The ease in flow of dutiable items and measures announced in the last budget in indirect taxes massively impacted the growth of sales tax revenue. The collection of sales tax by Customs registered negative growth of 0.82 percent to Rs376.944 billion during fiscal year 2012-13 against Rs380.072 billion during fiscal year 2011-12. The income tax, however, posted 22.5 percent growth to Rs102.554 billion last year from Rs83.716 billion during fiscal year 2011-12. The growth in income tax mainly drives from enhancement of rate on import of various products and rationalisation of advance tax. The measures taken at the beginning of current year also supported the revenue efforts.
14
www.customstoday.com.pk
iNTeRVieW
JuLY 23 - 29, 2013
Bid to smuggle forged visas foiled
DUBAI: Dubai Customs has foiled an attempt to smuggle forged stamps, documents and entry visas to EU and Latin countries. According to a senior official, the Asian passenger tried to bribe the two inspectors who nabbed him at the Dubai International Airport. Director of the Airport Operations Department at Dubai Customs Ali Al Mugahwi, said the forged documents and items seized were extracted from his bags. “These included stamps bearing the EU emblem, stickers and entry visas.”
37pc tax burden on imports to harm business activities: President KCCi cost of doing business in pakistan is highest in the region on the back of high rates of income tax, wHT and general Sales Tax AMANUllAH kHAN
www.customstoday.com.pk
C
ommercial importers paying up to 37 percent incidence of taxes on raw materials are mostly out of business because they cannot compete with imports under multiple tax and tariff regimes and smuggled materials, resulting in loss of substantial amount of revenue, said Muhammad Haroon Agar, President Karachi Chamber of Commerce and Industry (KCCI) in an exclusive interview with Customs Today.
The KCCI has always pleaded that rate of income tax, GST and Customs duty on industrial raw materials should be rationalised to enhance competitiveness of industry and curtail smuggling. He said that the Federal Board of Revenue has been invested with absolute powers which are not feasible for flourishing business, trade and
industrial activities. At the moment, cost of doing business in Pakistan is the highest in the region on the back of high rates of income tax, WHT and General Sales Tax, high tariff on import of raw materials for the industry and shortage and high cost of electricity and gas etc. In a recent meeting with Federal
and industry and revenue if the things were not handled in accordance with the suggestions made by the private sector for the recently announced budget, as the FBR had succeeded in convincing the Ministry of Finance for giving a shape to the customs dealing in accordance with their whims and wishes which may not be fruit-
from China and Saudi Arabia, Haroon said. The Karachi Chamber of Commerce and Industry has also invited suggestions regarding difficulties faced by them at customs stage, and a grand meeting of all the chambers across the country would be held to develop consensus on burning issues, problems and grievances, and
vice of the FBR would create a number of hurdles in the way of doing business and it is feared that these measures delegating absolute powers to the FBR officials may open a floodgate of corruption and bribery. The measures regarding customs taken in the budget would not help generate revenues as money would only pack the pockets of the
The measures taken in the budget on the advice of the FBR would create a number of hurdles in the way of doing business and it is feared that these measures delegating absolute powers to the FBR officials may open a floodgate of corruption and bribery Finance Minister Ishaq Dar we had pointed out that the FBR has managed to strengthen bureaucratic control over Customs which may have serious fallout effects on trade
ful for the economy, he remarked. The Finance Minister had, however, agreed to our point of view and promised to meet the traders and industrialists soon after his return
introducing Dulux EasycleanTM with Colourguard, now improved with Tough Mineral Technology. The enhanced formula locks in colours for a tougher and resilient surface, so cleaning walls are easier without damaging the paint.
the KCCI is confident that these grievances would be resolved in the larger interest of the national economy, he added. He said the measures taken in the budget on the ad-
corrupt. He regretted the FBR got approved two decades old measures, giving an impression that instead of moving ahead we have returned to the past.
www.customstoday.com.pk
NeWs 15
JuLY 23 - 29, 2013
Saudi customs posts $6b income in 2012
RIYADH: Saudi Arabia’s Customs Department has posted revenue of SR22.25 billion for 2012, 13.5 per cent more that of 2011, a report said. Tariff exemption on imported products amounted to SR 6.4 billion in 2012, according to the report in Arab News. Saudi Arabia imported goods worth SR587.8 billion last year, as against SR495.5 billion in the previous year, marking a rise of 19pc, the report quoted the annual report of the Customs Department as saying.
Customs surpasses revenue target
gwadar port to give pakistan edge in region The historical agreements signed between China and Pakistan in the wake of the visit of Prime Minister Nawaz sharif are bound to change the economic scenario with the development of logistics infrastructure such as construction of road and rail link between Pakistan and Kashgar cUSToMS ToDAY REpoRT www.customstoday.com.pk
M
uhammad Yahya, Chief Collector (Enforcement South Karachi) Customs, while highlighting the contribution of the Pakistan Customs in its core job of facilitating the imports and exports as well as revenue collection, has said that figures always speak louder than words which is reflected not only in meeting the target given by the government but collecting Rs3.5 billion more to reach Rs239-240 billion mark at the end of the financial year 2012-13.
Talking to Customs Today in an exclusive interview, the Chief Collector while responding to a question said that improving re-
lations between the government and the private sector would certainly help generate economic activity and its spill-over would automatically benefit both the private sector and the common man. The economic agenda of the present government focuses more on facilitating businesses in the country, giving a strong hope that the time has come for economic uplift of the country. When asked to comment on socio-economic impact of the Gwadar Port and role of the Customs Department, once this strategic port becomes fully operational, the Customs Chief took a pause to recollect his thoughts and said that it is destined to give an edge to Pakistan in the region. Although the responsibilities
Notices to be sent to 25,000 potential tax dodgers in two months cUSToMS ToDAY REpoRT www.customstoday.com.pk
akistan government and the international Monetary Fund (iMF) have agreed to send notices to 25,000 potential tax dodgers within two months (July and August) of the current financial year in an exercise to broaden the tax base. The broadening of tax base exercise has become part of the iMF’s bailout package under which Pakistan will get $5.3 billion with 36 months extended Fund Facility (eFF). When contacted, Tariq Bajwa, Chairman Federal Board of Revenue (FBR) said tax machinery would send tax notices to 100,000 potential dodgers in the current fiscal year in a bid to broaden the tax base. “For broadening the tax base (BTB), the FBR will send tax notices to 10,000 potential tax dodgers during the ongoing month and another 15,000 in August 2013,” the official sources said. The FBR’s team informed the iMF mission that tax machinery would target one million potential tax dodgers in next three years under ambitious BTB plan. However, the FBR has not yet identified first batch of 10,000 potential tax dodgers who will be sent notices in the ongoing month. so far, the FBR has decided to appoint designate commissioners in all 18 Regional Taxpayer Offices (RTOs) across the country to extensively broaden the tax base in the current financial year.
P
There was no new tax or duty in the budget rather certain measures are taken to facilitate especially the commercial importers for early clearance of shipments
of Customs would be increased tremendously but hopefully Customs workforce, which is wellequipped and updated due to regular training, is quite capable to deliver. As a transitional port, the role of the Gwadar Port would be unique in many dimensions. The historical agreements signed between China and Pakistan in the wake of the visit of Prime Minister Nawaz Sharif are bound to change the economic scenario with the development of logistics infrastructure such as construction of road and rail link between Pakistan and Kashgar. This historic project would reduce the travelling time to only 24-30 hours for Chinese goods from the Gwadar Port which currently takes a week from its port in the Eastern port.
Since tremendous industrial development taking place in the Western part of China close to Pakistan, it will certainly make the Gwadar Port as one of the busiest ports in the region. He was confident that this port is going to be a game changer for the economic future of the region. When invited his attention towards the recently announced federal budget and its impact on the Customs performance, Yahya said that there was no new tax or duty in the budget rather certain measures are taken to facilitate especially the commercial importers for early clearance of shipments. In this respect, instructions have been given to various segments to protect the interests of the importers.
Customs House employees get a raw deal
T
cUSToMS ToDAY REpoRT www.customstoday.com.pk
he lower cadre employees in the Custom House Karachi are performing their duties on different posts without medical, housing and other basic facilities.
Sources told Customs Today that over 100 employees including lower divisional clerks (LDCs), labourers and others in the Custom House are not provided with any kind of medical, housing or other facilities. One of the LDCs on condition of anonymity told Customs Today that they had been working in the Custom House for last three decades, but they were not given any facility for themselves and their families. “We are employees of the federal government, but unfortunately we are not given any basic facility on behalf of the government”, he added. “We spend our own income in case of any emergency as the government and authorities concerned do not extend healthcare facilities to the lower cadre staff of the Custom House Karachi”, he said. Exposing their problems, the LDCs said the higher authorities of the Customs Department had not established any housing scheme, particularly for lower cadre employees. “We have made several demands in this regard, but the high-ups do not pay any heed towards our grievances and issues”, he added. The lower cadre staff demanded of the government and authorities concerned in the Customs Department to take measures in order to redress their issues.
www.customstoday.com.pk
16
JuLY 23 - 29, 2013
Iran oil ministry to launch 2nd customs office
TEHRAN: The second exclusive oil customs office will become operational in the next four months to speed up the clearance of oil industry goods, Oil Ministry officials said. Sadri Afqah, the head of Kala Naft Manufacturing, Support and Procurement Company, said the customs office will be set up in Asalouyeh after Rey Customs Office, which was established for clearance of goods imported via land and air, while Asalouyeh Customs Office will only deal with sea imports, Fars News Agency reported.
Nisar becomes new Member customs
Largescalereshuffle in FBR as Bajwa eyes Rs2,491billiontarget for current fiscal year
FAIZA ISRAR AND SYED MoHAMMAD TAHIR www.customstoday.com.pk
W
ith the change of government, not only faces of economic managers of the country changed but officers in grade 18 and above have also been reshuffled. After taking over the new Chairman FBR has started restructuring of FBR in a big way following the shakeup, Nisar Muhammad, a BS-21 Officer, has been appointed as Member Customs. It would not be out of place to mention here that Nisar Muhammad, a senior officer of Pakistan Customs Service has previously served in various key positions across the country. His last posting was Member Strategic Planning Reforms & Statistics. He has got his MBA from Quaid-i-Azam University, Islamabad and M.Sc. in Defence & Strategic Studies from National Defence University, Islamabad. He has vast experience in his field as he had attended many seminars/workshops abroad relating to tax administration and reforms. It is to be noted that Pakistan Customs is the guardian of Pakistan borders against movement of contraband goods and is facilitator of bona fide trade. It provides a major source of revenue to the government of Pakistan in the form of taxes levied on the goods traded across the borders. It also helps to protect the domestic industry, discourage consumption of luxury goods and stimulate development. On the other hand, newly-appointed Federal Board of Revenue (FBR) Chairman Tariq Bajwa has finally formed his team including Nisar Ahmed Khan as Member Customs and Muhammad Asharf Khan as Member Inland Revenue Operations for achieving the gi-
gantic task of collecting Rs 2,491 billion revenue, the target set for fiscal year 2013-14 is about 26 percent higher than the collection of last fiscal year. The FBR recently issued two office orders notifying the postings and transfers of grade 20 and grade 21 officers of IRS and Pakistan Customs Services. FBR officials said that it was right time to announce the postings/transfers for formulating revenue collection policy for the entire year. They also said that the team chosen by the FBR chairman included best officers in both the groups, who are able to achieve the revenue target in difficult economic situation. It is though depressing but a hard fact that cashstarved Pakistan has no option but to take steps to increase revenue collection for reducing its fiscal deficit. The fiscal deficit has widened to about nine percent of the GDP in the last fiscal year. The postings/transfers of following officers of Grade 20/21 in customs group notified. The officers included: – Nisar Muhammad Khan (Pakistan Customs Service/BS21) transferred and posted as Member (Customs), Federal Board of Revenue (Hq), Islamabad from the post of Member (SPR&S), Federal Board of Revenue (Hq), Islamabad. – Muhammad Riaz (Pakistan Customs Service/BS-21) transferred and posted as Director General, Directorate General of Intelligence & Investigation,FBR, Islamabad from the post of Member (Customs), Federal Board of Revenue (Hq), Islamabad – Khalid Mahmood-II (Pakistan Customs Service/BS-21) transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad from the post of Director General, Directorate General of Intelligence & Investigation, FBR, Islamabad.
– Muhammad Yahya (Pakistan Customs Service/BS-21) transferred as Chief Collector, Enforcement (South), Karachi from the post of Chief Collector, Appraisement (South) , Karachi. – Nasir Masroor Ahmad (Pakistan Customs Service/BS-21) transferred as Chief Collector, Appraisement (South), Karachi from the post of Member, Federal Board of Revenue (Hq), Islamabad. – Ms. Riffat A. Hassan Abidi (Pakistan Customs Service/BS20) transferred as Chief, Federal Board of Revenue (Hq), Islamabad from the post of Chief Collector, (OPS) Enforcement (South), Karachi. – Fazal Yazdani Khan (Pakistan Customs Service/BS-20) trans-
the post of Collector, Model Customs Collectorate of Preventive, Karachi. – Amer Ahmad (Pakistan Customs Service/BS-20) transferred as Director, Directorate of Internal Audit (Customs), Karachi from the post of Collector, Model Customs Collectorate of Appraisement (East), Karachi. – Dr. Zulfiqar Ahmad Malik (Pakistan Customs Service/BS20) transferred as Director, Directorate of Post Clearance Audit, Karachi from the post of Collector, Model Customs Collectorate of Appraisement (West), Karachi. – Muhammad Saleem (Pakistan Customs Service/BS-20) transferred as Collector, Model Customs Collectorate of Appraisement (West), Karachi from the
Nisar Muhammad Khan, Member Customs, leafing through pages of Customs Today. —An Exclusive Customs Today photo
ferred and posted as Collector, Model Customs Collectorate of Preventive, Karachi from the post of Chief, Federal Board of Revenue (Hq), Islamabad. – Abdul Rashid Sheikh (Pakistan Customs Service/BS-20) transferred as Collector, MCC, Appraisement (East), Karachi from
post of Director, Directorate General of Intelligence & Investigation, FBR, Islamabad. Through another notification the FBR announced posting and transfers of following officers: – Ms. Musarrat Jabeen (Pakistan Customs Service/BS-21) transferred as Member, (HRM)
Published by M. F. Riaz for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, Off: i. i. Chundrigar Road, Karachi
Federal Board of Revenue (Hq), Islamabad from the post of Member (Taxpayers Audit), Federal Board of Revenue (Hq), Islamabad – Ms. Yasmin Saud (Inland Revenue Service/BS-21) transferred as Chief Commissioner Inland Revenue Large Taxpayers Unit, Karachi from the post of Chief Commissioner Inland Revenue, Regional Tax Office, Karachi. – Aftab Anwar Baloch (Pakistan Customs Service/BS-21) transferred as Member, (Enforcement) Federal Board of Revenue (Hq), Islamabad from the post of Member, Federal Board of Revenue (Hq), Islamabad. – Shahid Hussain Asad (Inland Revenue Service/BS-21) transferred as Member, (IR Policy) Federal Board of Revenue (Hq), Islamabad from the post of Member, Federal Board of Revenue (Hq), Islamabad. – Mustafa Ashraf Tabassum (Inland Revenue Service/BS-21) transferred as Chief Commissioner Inland Revenue Large Taxpayers Unit, Lahore from the post of Chief Commissioner Inland Revenue, Regional Tax Office-II, Lahore. – Muhammad Raza Baqir (Inland Revenue Service/BS-21) transferred as Member, Federal Board of Revenue (Hq), Islamabad from the post of Member (IR Operations), Federal Board of Revenue (Hq), Islamabad. – Muhammad Ashraf Khan (Inland Revenue Service/BS-21) transferred as Member, (IR Operations) Federal Board of Revenue (HQ), Islamabad from the post of Chief Commissioner Inland Revenue, Large Taxpayers Unit, Lahore. – Shahid Anwar Khan (Inland Revenue Service/BS-21) transferred as Member, Federal Board of Revenue (HQ), Islamabad from the post of Chief Commissioner Inland Revenue, Large Taxpayers Unit, Islamabad.