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pAKISTAN’S FIRST INDepTH NewSpApeR ON CuSTOmS
Vol 1 Issue No. 30
Karachi, Tue Sept 10 - mon Sept 16, 2013
weekly
Regd. No, mC-1381
Price Rs. 50.00
FTO redressing grievances
Our priority goals are to induce taxpayer friendliness of tax administration, remove tax related irritants and promote conducive tax culture, says FTO | See pAGe 6-7 |
Bajwa directs RTO officers
SOHAIL RAB KHAN www.customstoday.com
Tariq Bajwa, Chairman of Federal Board of Revenue (FBR), ordered the Regional Tax Office (RTO) Lahore officers to try their best to meet the budgetary target. | See pAGe 4 |
DG I&I to rid of corruption
For this purpose, DG I&I Riaz Khan conducted several meetings with Intelligence officials and urged them to adopt zero tolerance policy against corruption. | See pAGe 10 |
Cartoons Special
| See pAGe 11 |
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resident Karachi Customs Agents Association (KCAA) Saifullah Khan has termed the introduction of four different Collectorates namely Port Qasim Collectorate, East Collectorate, West Collectorate and Export Collectorate in one WeBOC System, a conspiracy against the country. Commenting on Web Based One-Customs (WeBOC) System in an exclusive interview with Customs Today, President KCAA informed that the said system was introduced in the year 2011 and before this, PaCCS System, also known as “Care”and formed with the help of Agility Software of Kuwait, was in working. “Before the introduction of WeBOC in 2011, the Chairman Federal Board of Revenue (FBR) and Member Customs briefed the trade bodies that they are going to introduce an automation system which is parallel to PaCCS vis-à-vis working and quality, but unfortunately, there is no use of automation in WeBoC and it is only used for data entry”, Khan added. To a query, President KCAA said that Customs agents are facing tremendous difficulties in clearance of import consignments under WeBOC system and
Customs officials need more training to operate the said system in a proper way. “Despite the fact that KCAA has written many letters to Chairman FBR and Member Customs for advancement of WeBOC, no action has been taken in this regard”, he added. Responding to another query, Saifullah Khan said, “Bifurcation of PaCCS Collectorate into 4 other Collectorates shows malafide intentions. On the one hand, this step created shortage of officials and, on the other, it could increase corruption in Customs Department”. He further demanded the establishment of a single Assessment Hall, the same as in the past, instead of four individual assessment halls of East Collectorate, West Collectorate, Port Qasim Collectorate and Export Collectorate. See page 02
— Exlusive Customs Today photo
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02 NATIONAL
SEPTEMBER 17 - SEPTEMBER 23, 2013
Govt urged to review FeD on ship-breaking industry
— Exlusive Customs Today photo
KARACHI: A newly-constituted group of steel makers, Pakistan Steel Manufacturer Association (PSMA), has urged the government to review federal excise duty (FED) on the ship-breaking industry. The PSMA members said that hike in power tariffs had further widened the price difference between steel products and other production created by the ship-breaking industry. The rise in electricity prices had also increased the rate of steel by at least Rs5,000 per tonne.
From page 01 Replying to a question, President KCAA said that the authorities concerned in Customs Department should utilize all their resources in order to run WeBOC in an effective manner, as clearing agents are still facing difNiculties in Niling GDs through this particular system and the prevailing situation compels them to Nile GDs manually. With the introduction of KAP-E Collectorate and KAP-W Collectorate, the goods which ground at Pakistan International Container Terminal (PICT), KAP-E Collectorate are going to Pakistan Shaheen Terminal, NLC, TPX and Timber Port while the goods which ground at Karachi International Container Terminal (KICT), KAP-W Collectorate are going to AlHamd, Burma Oil Terminal and MTO. Saifullah Khan further said that the Federal Board of Revenue and Pakistan Customs should take into conNidence the Agents Association and trade bodies before implementing or introducing any new system. Commenting on the upcoming
KCAA President decries bifurcation of paCCS Collectorate
Chairman APCAA Syed Shams Burney termed the involvement of Customs agents in ATT scam unlawful. Burney further said that no one should mislead the Federal Government and SC regarding ATT scam.
KCAA annual elections, Saifullah said that they are fully prepared for the elections and hoped that their panel would deNinitely win the polls with a thumping majority. Khan hoped that the Karachi Customs Agents Alliance will continue its struggle for safeguarding the rights of clearing/forwarding agents after coming into power again. “We stand shoulder-to-shoulder with clearing agents in difNicult times and will continue to resolve their issues related to clearance of goods”, he added. General Secretary KCAA Yahya Muhammad, while expressing his views over division of PaCCS Collectorate, said that Customs agents and importers are facing difNiculties in Niling GDs (Goods Declaration). “We want one-window operation that was functional in the past under PaCCS System”, Yahya added.
Customs Agents strike he Karachi Customs Agents Association (KCAA) and All Pakistan Customs Agents Association (APCAA) observed countrywide strike against the issuance of around 1178 Order-in-Original (ONOs) to the Customs agents in Afghan Transit Trade (ATT) scam on September 1011 which ended after successful talks with Collector Model Customs Collectorate (MCC) West Muhammad Saleem. The transporters bodies including Karachi Goods Transport Association, United Goods Transport Association and others also supported the strike. The sources informed Customs Today that a delegation of Customs agents comprising President KCAA Saifullah Khan, Chairman APCAA Syed Shams Burney, Zahid Qazi, Ifthiqar Shaikh and others met with the Collector Model Customs Collectorate (MCC) West Muhammad Saleem at his office. During the meeting, the Customs officials agreed upon to conduct re-hearing of the show-cause notices issued against
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Customs Agents in Afghan Transit Trade (ATT) scam. Muhammad Saleem assured them to redress their issues as soon as possible. He also assured that no new ONO would be issued against them. The Customs officials also assured the Customs agents to constitute a committee for redressal of their grievances regarding WeBOC. Sources said that KCAA President Saifullah demanded establishment of a joint investigation team comprising the officials of Customs, NAB, FIA, Customs Intelligence and Customs Agents to conduct impartial and unbiased inquiry into the ATT scam and identify the real culprits. He also demanded withdrawal of ONOs issued against Customs Agents. On this occasion, Chairman APCAA Syed Shams Burney termed the involvement of Customs Agents in ATT scam unlawful. He further said that no one should mislead the government and Supreme Court regarding missing containers scam.
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04 NATIONAL
SEPTEMBER 17 - SEPTEMBER 23, 2013
China’s exports improve in August: Customs
BEIJING: China’s exports rose 7.2 percent year on year to $190.61 billion in August, according to customs figures released recently. The growth rate was 2.1 percentage points higher than July. Imports also rose last month, gaining 7 percent to $162.09 billion, the General Administration of Customs said in a statement. Total foreign trade grew 7.1 percent in August over the same month in 2012 to $352.7 billion. Trade surplus widened by 8.4 percent year on year to $28.52 billion last month.
FBR chief directs Lahore RTO officers to achieve target
Customs impounds illegal goods worth Rs100m in July-Aug
LAHORE
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ariq Bajwa, Chairman of Federal Board of Revenue (FBR), ordered the Regional Tax Office (RTO) Lahore officers to try their best to meet the budgetary target. He issued these directives while chairing a meeting of the Chief Commissioners of RTO-I, RTO-2, Large Tax Payer Unit (LTU) and other high officers. The meeting discussed changes made in this fiscal year’s budget by the government, and how to generate revenue through these changes. Member Inland Revenue (IR-Operations) Muhammad Ashraf, RTO-I Chief Commissioner Shafqat Mahmood, LTU Lahore Chief Mustafa Ashraf and RTO-II Chief Dr Muhammad Irshad also participated in the meeting.
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Australian Customs clears Pakistani mangoes LAHORE
CuSTOmS TODAY RepORT www.customstoday.com
odel Customs Collectorate’s anti-smuggling wing conducted 27 raids and conNiscated illegal goods worth Rs59.64 million involving Customs duty of Rs35 million during the month of August, while Rs40 million worth of illegal goods were also seized in July 2013. Customs top ofNicial said that the department’s ofNicials have been instructed to conduct organised operations to weed out smuggling. During August 2013, the antismuggling wing conNiscated used generators worth Rs0.42 million, 8,262kg of MS pipes worth Rs 0.8m; 27,000kg steel pipe of Rs27 million; auto parts worth Rs0.60m; cartons of shampoo worth Rs0.25 16m; 1,180 cartons of medical X-ray Nilms worth Rs15.75m and Toyota Vitz Car ALJ434; Toyota Land Cruiser APL-13; Shafoon Fabric in rolls; 18,995kg of MS sheets; 1,500kg of plastic dana; 100 KVA diesel generator; 14,238 yards A/S cloth and 4,885 yards ladies & gents cloth as well as seven bodies of Mazda trucks, etc. The anti-smuggling unit also seized 11,200 yards blended fabric in roll worth Rs 0.80m, 341 KVA used diesel engine generators worth Rs 2.60m, led ZIC, used electric motors and 150 bags of polythene plastic dana. During July 2013, the anti-smuggling wing seized smuggled goods
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During August 2013, the anti-smuggling wing confiscated used generators worth Rs0.42m, 8,262kg of MS pipes worth Rs 0.8m; 27,000kg steel pipe of Rs27m and auto parts worth Rs0.60m
FTO zonal offices in Lahore, Faislabad soon LAHORE
CuSTOmS TODAY RepORT he first-ever consignment of the Pakistani mangoes reached Australia following complete clearance by Customs and Quarantine Department of Australia after thorough examination. Mangoes of Pakistani origin finally reached wholesale markets of Australia after two-day lab test of 4.5 tonne of mangoes. The Australian authority has given access to Pakistani company after three years' consecutive inspections of plant, technology and fruit quality. Hence, the country has achieved the landmark this year while leaving behind different countries of the world keen to penetrate into Australian fruit market. "This will enhance exports earning of the country whereas increasing popularity of the Pakistani fruits in the world," sources said.
and articles worth Rs40 million. The conNiscated illegal goods included ladies cloth worth Rs0.44 million, 617.28kg parachute fabric worth Rs 0.35 million, 410kgs A/S cloth worth Rs0.29 million, 39KVA diesel generator worth Rs1.20 million, 275-300 KVA diesel generator worth Rs2 million and other miscellaneous goods worth Rs1.30 million. The wing also apprehended Honda Civic car IDS686, Honda Accord car LEE-08-7217, Toyota Corolla car IDF-8075, Toyota Crown car R-2790, DVDs & cloth worth Rs1.40 million, 300 rolls of ladies suiting cloth worth Rs0.75 million and miscellaneous goods worth Rs0.75 million. While, 500 KVA diesel generator worth Rs2 million, 6,048kg Gerry cloth worth Rs3 million, 10,000 me-
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ederal Tax Ombudsman (FTO) Zonal ofNices will be set up in Lahore, Faislabad and Peshawar to facilitate the business community who have to travel to Islamabad and Lahore for getting relief from FTO, a source quoted Abdul Rauf Chaudhry, FTO as saying. The zonal ofNices of the Federal Tax Ombudsman Lahore in and Karachi are being strengthened with appointment of one more Advisor in each very soon. Lahore ofNice has one Judge and one Advisor while the Karachi ofNice has one Judge and two Advisors, and already working. In Quetta, FTO ofNice is already operative. Opening of FTO ofNice in Multan is also on the cards, the source said. FTO secretariat was established in 2001 in Islamabad when it was noted that more than Nifty percent complaints Niled with Federal Om-
budsman related to taxes and Customs duties. He said special cells were being set up at FTO ofNices to ensure timely implementation of FTO orders and decisions so that the complainants could get their payments and refunds within deNined time period.
He said now provision of contempt of FTO orders has been included in the FTO laws/ mandate. There shall be severe punishment for FBR ofNicers who fail to implement FTO orders and rulings within a speciNied time, he informed.
FTO for addressing exporters’tax issues
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ederal Tax Ombudsman (FTO) Abdul Rauf Chaudhry has assured textile exporters that he will point out their tax-related issues in meeting with the Federal Board of Revenue (FBR) chairman. The FTO, during a meeting with exporters at PHMA House, said that the Ombudsman Office was aware of the textile industries’ problems and would try its best to resolve their disputes with the tax office. Abdul Rauf Chaudhry said that he would discuss the textile sector's problems with the FBR chairman as pending decisions were creating troubles for the exporters. He said that the export-
oriented industrial sectors should grow as new competitors especially Bangladesh was emerging on the global market, posing serious threat to Pakistan's textile sector. He told the exporters that Bangladesh, being a non-cotton producing country, had enhanced its textile export to $25 billion, whereas Pakistan even with locally grown raw materials was far behind in the competition. Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Central Chairman Muhammad Javed Bilwani informed the FTO about the industry’s problems which FBR is not solving. —CT Report
ters Indian cloth worth Rs1.0 million, 250 bags of dry milk powder, 1,200KVA, 20-KVA and 75KVA diesel generators and Mazda truck LES-136071 were also conNiscated. The department also seized 2,460 yards A/S cloth worth Rs0.25 million, 35,425kg HRC coils Rs3.04 million, 12 tones steel coils worth Rs1.20 million, 135,000 yards polyester lining cloth worth Rs0.70 million, Toyota Corolla car LXE-786 and 2,543kg MS pipe worth Rs 3.44 million. The body of a Mazda truck/LES-09-1916, 100 bags of plastic dana worth Rs0.50, 2 Nos used generator worth Rs1.80m, 9,300 yards Indian origin A/S cloth worth Rs0.58m, 100-KVA diesel generator worth Rs 1.00 and 12,156 packs of shampoos, creams and spray worth Rs1.28m.
APPMA to support Alliance in LCCI polls LAHORE
CuSTOmS TODAY RepORT www.customstoday.com
ll Pakistan Paper Merchants Association (APPMA) and hundreds of traders of affiliated markets announced to support PIAF-Founders Alliance candidates in the LCCI elections being held on September 23rd and 24th. The announcement was made by the APPMA leaders Khamis Saeed Butt, Qayum Raza, Bao Muhammad Bashir, Saadat Hussain, Khawaja Nadeem Saeed Wain, Muhammad Ajmal Muhammad Akram, Samiullah Butt during the visit of PIAF-Founders leaders Iftikhar Ali Malik, Muhammad Ali Mian and candidates for Association Class.They said that traders of Paper Market would put their weight behind the Alliance candidates for Associate Class Sohail Lashari, Khawar Rasheed,TalhaTayyab, Raja Hamid Riaz, Rizwan Khalid, Muhammad Haroon and Muhammad Akram in the larger interest of business community.
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SPECIALREPORT
SEPTEMBER 17 - SEPTEMBER 23, 2013
FTOFULLyEMPOWEREDTO
ReDReSSGRIeVANC OFTAxpAYeRS: ABDURRAUF ISLAMABAD — Exlusive Customs Today photo
FAIZA ISRAR
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Federal Tax Ombudsman (FTO)
Abdur Rauf Chaudhry said that law empowers a tax ombudsman to investigate complaints of taxpayers against maladministration.
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n an exclusive talk with Customs Today, Mr. Rauf said, “FTO OfNice has complete authority to launch an inquiry over any complaint, and this job can be assigned to any ofNicial at his ofNice. For this purpose, the authorised ofNicial can access any ofNicial document necessary for conducting the investigation. And the Ombudsman can also issue warrants against anybody asking him to appear before him. FTO Secretariat can also take cognizance of cases referred to him by President, Parliament, Supreme Court or High Courts.” He said, “Main purpose of FTO Secretariat is to undertake initiatives providing inexpensive and speedy justice to taxpayers aggrieved by tax maladministration. For this purpose two more regional ofNices are being operationlised at Faisalabad and Peshawar. A state-of-the-art online complaint Niling system is also being put in place to reduce time and cost of complaint Niling.” He further said, “An FTO-taxpayer
interaction has been established through periodic meetings with Chambers of Commerce and Industry, trade bodies, business associations, tax bars and civil society organizations in the country. Our priority goals are to induce taxpayer friendliness of tax administration, remove tax related irritants, reduce cost of doing business and promote conducive tax culture in Pakistan.” He said, “Under Section 16 of establishment of Federal Tax Ombudsman (FTO) Ordinance, 2000, the Ombudsman enjoys same powers as the Supreme Court to punish any person for contempt, if he abuses, interferes with, impedes, imperils, or obstructs the process of the Ordinance in any way or disobey his order.” Answering to a question, Mr. Rauf said, “He can recommend any case against the tax functionary to the authority concerned to take appropriate remedial action to redress the issue. He can also recommend disciplinary action and order pay-
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SPECIALREPORT 07
SEPTEMBER 17 - SEPTEMBER 23, 2013
ment of compensation by the arrant tax ofNicial to the aggrieved citizen. In this regard, FBR is given 30 days time to implement the Ombudsman’s orders, if FTO is not satisNied with FBR explanation, he can refer the matter to the President to take Ninal decision.” Talking about his mandate, Mr Rauf said that an Ombudsman’s core function is to ensure that citizens are treated professionally, courteously and fairly, and tax ofNicials are providing complete, accurate, clear and timely information. And we are achieving it by conducting impartial and independent investigations of taxpayers’ complaints about unfair treatment by the tax ofNicials. Answering to another question, he said that under Section 14(8) of FTO Ordinance, the Ombudsman can review any Ninding/recommendation made or any order passed. He said, “We also identify and review systemic and maladministration related issues with FBR. The core function of FTO revolves around: dis-
— Exlusive Customs Today photo
CeS
Our priority goals are to induce taxpayer friendliness of tax administration, remove tax related irritants, reduce cost of doing business and promote conducive tax culture in Pakistan
posal of complaints of tax maladministration promptly, justly, fairly and independently, and to rectify any injustice done to a taxpayer by actions of the tax employees of FBR/Revenue Division, Government of Pakistan. But the jurisdiction of the Ombudsman’s OfNice does not extend to cases that are subjudice.” He said that we exercise powers independent of the executive, and all executive authorities throughout Pakistan are required to act in accordance with FTO. “We are focused on strengthening accountability. Past experience reafNirms the fact that the Ombudsman cannot work effectively without necessary institutional capacity and resources. FTO cannot exercise Ninancial and operational independence without government’s unNlinching support and strong resolve to tackle the menace of maladministration. Jurisdiction of the Ombudsman should be understood properly to avoid overlap of powers among institutions,” he concluded.
An Ombudsman’s core function is to ensure that citizens are treated professionally, courteously and fairly, and tax officials are providing complete, accurate, clear and timely information. And we are achieving it by conducting impartial and independent investigations of taxpayers’ complaints about unfair treatment by the tax officials
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08 EDITORIAL
SEPTEMBER 17 - SEPTEMBER 23, 2013
Founder & Chairman Zulfiqar Ali Editor Nasim Ahmed editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-322-3370002 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDITORIAL
FBR’S AuDIT pLAN
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BR’s Board-in-Council has approved an audit plan for income tax and sales tax under which thousands of taxpayers will be selected through random balloting for detailed scrutiny of their accounts. This is one of the many measures FBR has adopted to achieve the target of collecting an amount of Rs 2,475 billion in taxes in the current fiscal year as compared to Rs 1936 billion in the last financial year. This year’s figure is 28 per cent higher relative to the actual collection last year. The undertaking is not easy, considering the fact that during the last 2-3 years despite major mobilization efforts to broaden the tax base, the annual growth rate in tax collection did not go beyond 10-15 percent. The fact that FBR has collected only Rs 290.5 billion in first two months and the first week of September 2013 shows the enormity of the challenge FBR faces. This figure marks a growth of 17 percent over the figure for the same period of the last financial year. Under the FBR’s audit plan, 5 percent taxpayers will be selected through random balloting for detailed scrutiny of their documents. It is as well that FBR has decided to conduct audit on the basis of random balloting as against parameter based audit because the latter method is challenged in different courts on administrative and legal grounds, costing the Board much in terms of time, energy and attention. The legal wrangles FBR has faced over the years on the issue of parameter based audit created insurmountable difficulties in implementing its audit plan. Audit is an important tool to ensure compliance with rules by the existing taxpayers and minimize the incidence of figure fudging and tax evasion. It is no secret that hundreds of billions of rupees are lost to the national exchequer every year due to manipulation of figures managed through an unholy collusion between tax men and taxpayers. Detailed scrutiny of submitted tax returns acts as a deterrent against this menace. But there are certain pre-conditions which must be kept in view if the audit plan is to succeed in its objectives. It should remain focused in its scope and application. Salaried classes have rightly been excluded from the audit purview. Similarly, no time should be wasted in pursuing small and medium taxpayers. The audit initiative would be more productive if the noose is tightened against the big fish. At the same time it is important to ensure that the whole exercise is conducted in a fair and transparent manner. FBR has already a Tax Audit Management System in place to monitor the progress of audit notices issued. This system should be run in an efficient manner to avoid misuse of audit notices by unscrupulous elements in the department for personal gains.
ImF and tax reform LAHORE
NASIm AHmeD
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MF loans never come without a price. While deciding to bail a country out of a difNicult situation, it lays down conditions to ensure that the recipient government undertakes necessary reforms to put its Ninances in order. The same formula applies to the 3-year arrangement under the Extended Fund Facility amounting to $6.68 billion which IMF has approved for Pakistan. According to the Fund, the programme will help Islamabad to reduce Niscal deNicit and implement structural reforms to boost tax revenue, investment and growth.
In anticipation of the IMF facility, the Pakistan government has already taken some difNicult decisions to achieve the intended objectives of macroeconomic stability, including a hike in utility tariff and POL prices, a cut in power sector subsidies and an understanding between federal and provincial governments on a budget surplus as the 18th Constitutional Amendment and the 7th NFC Award have shifted the bulk of resources from the centre to the provinces. The restoration of macroeconomic stability through tightening of Niscal and monetary policies as prescribed by IMF is the real challenge facing the government. Pakistan has already agreed with the IMF to undertake key reforms
to raise the tax-to-GDP ratio by one per cent each year. To this end, in this year’s budget steps have been taken to increase the GST rate and slap higher excise duties on cigarettes. At the same time, the corporate minimum tax rate has been revised, and higher personal income tax rates have been prescribed for the top income brackets. While, in some cases, withholding tax rates have been increased and new withholding rates introduced, movable assets have also been subjected to a new levy. In the energy sector, commercial industrial tariff has been raised which has reduced subsidies by 0.75 per cent of GDP. Moreover by end-December 2013, the govern-
ment will also implement a new gas levy that will increase tax revenue by 0.4 per cent of GDP or over Rs120 billion on annual basis. But we cannot expect long term improvement in tax collection unless we introduce basic reforms in tax administration. This is essential to fructify the initiative to incorporate 300,000 new taxpayers into the income tax net launched in July. The notices issued to 10,000 potential new large tax payers also need to be followed up with provisional assessment, collection, penal as well as prosecution proceedings. In this context, FBR has the onerous task of improving the revenue administration for sales, excise and customs.
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PICTORIAL
SEPTEMBER 17 - SEPTEMBER 23, 2013
Indian Customs arrests man with 1kg cocaine in stomach
MUMBAI: The Indian customs officials have arrested a Ghana national at Mumbai’s international airport for allegedly trying to smuggle 1kg of cocaine into the city. According to assistant commissioner of Customs, Rishi Yadav, the accused had filled the cocaine in 76 capsules, which were found in his stomach at the time of his arrest. The cocaine is said to be bought from Latin Americans. The accused has only been identified as Mubarak, who as per his passport details, has come to the city for the first time.
— Exlusive Customs Today photo — Exlusive Customs Today photos
AqeelAhmedelectedpresidentofRICAA
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qeel Ahmed Rana of Sea International has been elected unopposed as president of Rawalpindi/Islamabad Customs Agents Association. The election was scheduled to be held in 1st week Of September 2013. Last date for submission of nomination papers was 29 August. For this purpose, 14 applications were received. On 30-082013, 5 nomination papers were withdrawn. The remaining nomination papers were scrutinized and declared
as elected. Their names and designations are as under:Aqeel Ahmad Rana of Sea international as President, Mohammad Razzaq as Senior Vice President, Malik Muhammad Afzal as Chief Executive, Malik Maqbool Hussain as VP for Dry Port, Kh. Naseer Ahmed as Vice President for Export, M. Rafique as Vice President for Import, Akhtar Hussain Bukhari as General Secretary, Malik Ejaz Hussain as Joint Secretary and Muhammad Islam as Finance Secretary.
MEMBERIR(OPERATIONS)&MEMBERIR(TAXPOLICy)ATLTUKARACHI
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10 NATIONAL
SEPTEMBER 17 - SEPTEMBER 23, 2013
NZ Customs tracking parcel cheats
WELLINGTON: New Zealand Authorities are tracking parcel cheats who don't declare the correct value of the goods they're sending to New Zealand. Customs Minister Maurice Williamson says the senders try to get their goods in as express delivery low value imports. In one case, electronic parts imported from the United States were declared at $326 and discovered to have a value of $24,304. A Customs operation examined 2562 consignments and found 733 were above the low value threshold.
DG I&I asks officials to remain vigilant against tax evasion voicing. On the occasion, he reviewed the performance of the officials in Directorate of Customs I&I and lauded their efforts despite limited staff and equipment. “Issue of shortage of officials in Directorate of Customs I&I came under discussion and DG Customs Intelligence assured that the said issue would be redressed soon”, sources added. Riaz Khan also evaluated the recent raids conducted by Intelligence officials and saved huge tax evasion. During the meeting, the DG Customs Intelligence issued clear directives to the Intelligence officials that they should adopt “zero tolerance policy” against corruption and keep vigilant eye over tax evasion and under-invoicing cases. The meeting was attended by Director Customs Intelligence and Investigation Dr Manzoor Hussain Memon, additional directors and intelligence officers.
KARACHI
CuSTOmS TODAY RepORT www.customstoday.com
Kamran welcomes Ukrainian interest in development of ports & shipping KARACHI
CuSTOmS TODAY RepORT www.customstoday.com
krainian Ambassador Volodymyr Lakomov has shown his interest in developing the areas related to the Ministry of Ports and Shipping. Honorary Consul of Ukraine in Karachi Engr M A Jabbar conveyed the ambassador’s message to Federal Minister for Ports and Shipping Kamran Michael. He said that Ukraine also wanted to sign covenants between the companies of the both countries. Jabbar informed the minister about the Ukrainian heavy industry and technology which could help Ministry of Ports and Shipping meet needs of 21st century. Kamran Michael, appreciating the Ukrainian ambassador’s desire, said that the Ukrainian companies should visit Pakistan and assess their own competitiveness to participate in the developmental matrix of the requirements.The minister lauded the Ukrainian technology used in major parts of Pakistan Steel Mills and Al Khalid tank in Army and said that many heavy duty equipments would also be needed for different projects of Gwadar Port Authority. Kamran appreciated the Ukrainian experts’services in Pakistan Steel Mills during the crucial period through which the mill was passing. He said he would soon meet with Ambassador of Ukraine in Islamabad.
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he Director General (DG) Customs Intelligence and Investigation (I&I) Muhammad Riaz Khan conducted several meetings with Intelligence officials of the Directorate of Customs I&I, Karachi. Sources in Directorate of Customs I&I told Customs Today that DG Customs I&I Riaz Khan stressed upon improvement in performance of the officials and coordination among the Intelligence officials. The DG I&I also asked the officials to enhance the intelligence system and lay down effective network in this regard. During the meeting, DG I&I Khan also emphasized that effective measures should be taken to curb tax evasion and under-in-
Enhancing exports key to uplift economy:Agar KARACHI
CuSTOmS TODAY RepORT www.customstoday.com
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arachi Chamber of Commerce & Industry’s President Muhammad Haroon Agar has emphasized that industrialization and enhancing exports is the imperative solution to uplift the economy. For the larger interest of the country and its citizens, public and private sector harmony and coordination is crucial and unavoidable to strengthen the frail economy. Exchanging views with Chief Executive Officer of National Industrial Parks Development & Management Company, Govt. of Pakistan Mohsin Syed, he stated that seven industrial zones in Karachi lack infrastructural facilities of proper roads, railway linkage and other basic amenities like energy, gas, water etc. The industrial policy framework should focus on improving industrial competitiveness, especially with regard to industrial en-
terprises. Chief Executive Officer of National Industrial Parks Development & Management Company Mohsin Syed stated that National Industrial Parks Development & Management Company (NIP) was operating under the ambit of the Ministry of Production, Government of Pakistan. NIP is a public-private partnership established to develop focused industrial growth in Pakistan by developing world-class industrial parks all over the country. He apprised that NIP aims to support rapid industrialization in the country by establishing new industrial parks and take necessary steps in attracting industrialists for setting up their businesses in the industrial parks. He invited the President KCCI to compose a delegation to visit the Korangi Creek and Bin Qasim Industrial Park.
DCAs waiting for promotions despite FTS orders s many as 26 Data Controlling Assistants (DCAs), who have been working in the Computer Bureau Department in Customs House for the last many years, are still waiting for their promotions instead of they have filed contempt of court petition in Federal Tribunal Service (FTS), Islamabad against the authorities concerned for not promoting them. One of the DCAs in Custom House told Customs Today that Khalid Muneer advocate has filed a contempt petition on the behalf of 26 DCAs. He said that the case was already in pending for the last several months and in the last hearing, the FTS had ordered the authorities concerned to decide the matter in 4 months, but despite passing more than the stipulated time, the Custom Department authorities were still turning a deaf ear to the orders. He asserted that this time the decision would be in the favour of DCAs. Around 26 DCAs, who have been working as Data Control Assistants for the last 30 years in the office of the Chief Coordinator, Computerisation and Programming Department in Custom House Karachi, are waiting for upgradation of their posts from BPS-10 to BPS-16. The DCAs, while talking to Customs Today, expressed deep anxiety over the non-compliance of the orders issued by the FST on Jan 1, 2013. The DCAs told this scribe that they had submitted the case in 2010 and later on, the FST proceeded their cases in the 2012 and then issued its detailed judgement on the beginning of 2013, in which the department was ordered to upgrade the post of the Data Control Assistants (BPS10) to Data Processing Assistants (BPS-16). The DCA further said that they had been recruited in 1979, 1982 and 1986 in the Computer Bureau Department of Custom House. However, those who were appointed later have been promoted in BPS-14 and then BPS-16 on basis of‘nepotism’. “We all are experienced, educated and meet the criteria of promotion, but the authorities concerned do not pay any heed to our issues”, he maintained. —CT Report
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FBR reviews SRO regime
Customs Agents Alliance will win polls unopposed: Sagheer
BR has finalised process to rationalise the SROs regime as per the IMF conditions on new loan programme, and will announce it by the end of 2013.The exemptions and concessions will be rationalised and such facilities will be given to only export-oriented industries.The export-oriented sectors will be facilitated with these services because the manufacturing activities have already been disturbed owing to the power crisis. —CT Report
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CuSTOmS TODAY RepORT www.customstoday.com
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he panel of Karachi Customs Agents Alliance will win the annual general elections for the year 2013-14 unopposed. This was stated by Sagheer Qureshi, Assistant Vice President of Karachi Customs Agents Alliance (KCAA) during an exclusive interview with Customs Today at KCAA
ofNice. Sharing his views, Qureshi said, “Current ofNice-bearers of KCAA have served Customs agents round the clock and after coming into power again, they will serve the agents in the same manner”. Highlighting the issues faced by Customs agents, Qureshi informed that clearing agents have to face problems due to introduction of new system after every 3 to 4 months and import charges have been increased due to this practice.
To a question, Qureshi said that Customs agents are facing immense difNiculties by the division of the PaCSS Collectorate, adding that Customs Department should initiate training sessions for Customs ofNicials. “We have tried our level best to educate Customs agents regarding use of every new system introduced by Customs Department”, he added. Sagheer Qureshi said that all three terminals are facing scarcity of examination staff.
www.customstoday.com SEPTEMBER 17 - SEPTEMBER 23, 2013
Anti smuggling wing conďŹ scates 512 computer LCDs
LAHORE: Lahore Model Customs Collectorate anti-smuggling wing seized at least 512 non-duty paid Computer LCDs at Faizpur Interchange. Official source said that a team of anti-smuggling wing on a tipoff raided a Mazda truck and confiscated 512 computer LCDs worth Rs 25 lakh market value. Source said that LCDs were being smuggled from Peshawar to a Lahore market. According to source, a case under Customs Act has been registered against the responsible.
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www.customstoday.com
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SEPTEMBER 17 - SEPTEMBER 23, 2013
Dastgir given additional charge of Commerce minister
ISLAMABAD: Privatisation Minister Engineer Khurram Dastgir Khan has assumed the additional charge of Ministry of Commerce and Textile, according to the notification issued by Cabinet Division. Khurram Dastgir understands the problems of Ministry of Commerce and its attached departments as he has worked as Chairman Standing Committee of Commerce during the tenure of Pakistan People’s Party.
SOHAIL RAB KHAN www.customstoday.com
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he Directorate of Customs Intelligence & Investigation (I&I) Karachi is fully focused to bring to an end the rising trend of smuggling and to thwart the menace of duty evasion through mis-declaration. This was stated by Director Customs Intelligence & Investigation (I&I), Karachi Dr Manzoor Hussain Memon during an exclusive interview with Customs Today at his ofNice. Sharing his views, Memon said that the Customs Intelligence is completely determined to minimize the problem of smuggling and for this purpose the department is keeping a vigilant eye on transportation of imported goods at the terminals. “Efforts are under way to detect the cases of evading tax levy with the help of strict surveillance of Intelligence ofNicials and their networks at different ports and terminals”, he added. Director Customs I&I further said that the department is also
keeping a watchful eye on money laundering cases. Recently, the department conducted 3 massive crackdowns in which 3 cases of under-invoicing were detected including Rs 260 million of Pakistan Telecommunication Limited (PTCL), 32 containers of fake GDs held at Port Qasim Container Terminal and 3 containers of miscellaneous items held at Pakistan International Container Terminal (PICT). In answer to a query, Memon informed that Federal Board of Revenue (FBR) and Customs Service would evolve an effective strategy to curb smuggling and underinvoicing cases. “Our mission is to stop evading tax levy and eliminate smuggling through concerted efforts”, Memon added. Elaborating, Mr Manzoor Memon said, “We would not allow importers to conduct any illegal activity including mis-declaration of goods and evasion of duty with patronization of Customs ofNicials. Customs ofNicials would also be punished if they are found involved in any corrupt practice.” Memon suggested that Customs ofNicials should remain devoted to their duties and avoid involving themselves in any illegal activ-
mad Khan have issued clear directives to improve the efNiciency and working of the department. “In the light of the directives of Chairman FBR and Member Customs, the Customs Intelligence and Investigation Department is determined to improve its working. Recent raids are an open proof of the outstanding performance of Customs Intelligence”, Memon added.
The department is also keeping a close eye on money laundering cases. Recently, the department conducted 3 massive crackdowns in which 3 cases of under-invoicing were detected including Rs 260 million of PTCL, 32 containers of fake GDs held at Port Qasim Container Terminal and 3 containers of miscellaneous items held at Pakistan International Container Terminal (PICT), says Dr manzoor Hussain memon
Published by M. F. Riaz for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, Off: I. I. Chundrigar Road, Karachi
— Exlusive Customs Today photo
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ity. “We must introduce a culture where corrupt Customs ofNicials should also be arrested and brought to book”, Memon added. Referring to a recent case in which an importer through misdeclaration of GDs tried to evade around Rs 84 lakh of tax levy, Memon said that such things could not be accomplished without the connivance of Customs ofNicials. Commenting on the recent development in that particular case, Director Customs I&I said that the department will investigate the AC concerned and if he is found guilty, the Directorate will write a letter to FBR for awarding him due punishment. “Through such actions, we can discourage the increasing trend of corruption in Customs Department”, Director I&I asserted. Highlighting the performance of Customs Intelligence Department, Memon informed that the department recently arrested a ‘culprit’ after conducting a raid on a godown, where under-invoiced imported goods were kept. “The Customs Intelligence has recovered goods worth Rs5 million from the godown and investigation in this regard is underway”, he informed. Director Customs Intelligence and Investigation, Manzoor Hussain Memon said that Chairman FBR Tariq Bajwa and Member Customs Nisar Muham-