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pAKISTAN’S FIRST INdepTH NewSpApeR ON CuSTOMS

ABC Certified Vol 2 Issue No. 32

Karachi, Tue Aug 26 - Mon September 01, 2014

weekly

Regd. No, MC-1381

gRANTINg MFN STATuS

Ministry of Commerce seeks suggestions from NTC to safeguard measures, tariff, duties and subsidies in connection with granting MFN status to India | See pAge 05 |

KARACHI

SOHAIL RAB KHAN www.customstoday.com

ReSTRAININg FTO

T TheLahoreHighCourtrestrains FederalTaxOmbudsmanfrom usingcontemptcourtpowersunder Article204oftheConstitution See pAge 02 | VISITINg SwITzeRLANd

The delegation including Federal Finance Secretary and FBR Chairman to negotiate return of $200 billion of Pakistan stashed away in Swiss banks will reach Switzerland on August 26. | See pAge 02 | RejeCTINg CALL

The FBR spokesperson Shahid Asad rejects Imran's call for civil disobedience and terms it an irresponsible statement | See pAge 04 |

he Model Customs of Collectorate (MCC) Appraisement-West Muhammad Saleem has confirmed that the Pakistan Customs is going to file a Constitutional Miscellaneous Application (CMA) in Supreme Court of Pakistan (SCP) for early hearing of case relating to valuation guideline issue.

He said that customs has already submitted written reply in Islamabad High Court (IHC) in connection with valuation guideline issues within 15 days of deadline given by the court.

He further informed this scribe that the Pakistan Customs wanted early hearing of the case and he briefed the customs lawyer in this regard.

The Collector was of the view that the Pakistan Customs always issued proper valuation rulings of the items included in the valuation guideline, adding that the issue of valuation guideline has already been resolved by the Pakistan Customs Act. It is pertinent to mention here that the importers had submitted a Constitutional Petition (CP) in the month of June, 2013 in Islamabad High Court (IHC) for reviewing the unrealistic valuation guideline.

Moreover, FBR had issued valuation guideline of 96 items in Qirst phase and 133 items in the second phase which were criticized by importers, business community and clearing agents.

Meanwhile, Model Customs Collectorate Appraisement-West Collector Muhammad Saleem has made transfers of 22 customs ofQicers within the collectorate.

As per notiQication, Abdul Qayyum from Group-VI has been transferred to AIB/R&D, Tahir Hussain from AIB/R&D to West Wharf, RaQiullah from West Wharf to Group-

I, Ahmad Nawaz from Group-I to Group-II, Tariq Aziz from Group-II to Group-VI and Saleh Kalhoro has been posted in Headquarters from West Wharf.

Moreover, Mohammad Khalid from Group-V has been transferred to Assessment Hall; Khalid Pervez, Nadeem Ahmed Khan and ZulQiqar Zaman from BG Cell to Assessment Hall; Sarfaraz A Bangalzai from Assessment Hall Group-IV to BG Cell; Abdul Rashid Khan from Assessment Hall to AIB & Law Branch; Sahir Khan from Assessment Hall to AIB; Muzaffar A Abbasi from Auction to Assessment Hall; Khaliqur Rehman from Assessment Hall Survey Cell to Assessment Hall; Haris Ahmed Khan from Assessment Hall to BG Cell; M Zaman Jamali from West Wharf to BG Cell while Abid Hussain Shah has been moved from BG Cell to Adjudication-I for three months.

The MCC appraisement has

Customs submitted written reply in IHC within 15 days of deadline given by the court

moved Salman Bukhari from Adjudication-I to KICT; Miskeen Shah from BG Cell to West Wharf; Mohammad Raheem from AICT to AIB and Shahid Hameed from Bonds Section to AICT. Additionally, it has been decided that Appraising OfQicers posted in WeBOC Assessment Hall shall also be responsible for assessment of One Customs of respective WeBOC.

Price Rs. 50.00

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NATIONAL

AUgUST 26 - SEPTEMBER 01, 2014

pak-China Corridor a game changer for whole region: Ahsan

ISLAMABAD: The Federal Minister for Planning, Development and Reform Ahsan Iqbal said that China Pakistan Economic Corridor (CPEC) is a game changer for Pakistan. It will usher a new era of progress and prosperity in the country. He was chairing introductory meeting of the Transport Group of CPEC in Planning Commission. The meeting was attended by officials from Ministry of PD&R, Commerce, Railway and Ports and Shipping.

Retrieving $200b: Delegation to reach Switzerland on 26th ISLAMABAD

CuSTOMS TOdAY RepORT www.customstoday.com

Action on Customs Today report

Appraisement (west) makes seating arrangements for visitors MCC-Appraisement (West) fixed more than 50 chairs altogether in assessment halls and outside the offices of deputy collectors and assistant collectors KARACHI

SOHAIL RAB KHAN

— Exclusive Customs Today photo

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he delegation to negotiate return of $200 billion of Pakistan stashed away in Swiss Banks will reach Switzerland on August 26, 2014.

The delegation will consist of the Federal Finance secretary, the FBR chairman and other officials.

According to reports, the Pakistani delegation will stay in Swiss capital for three to four days. It has been expected that it will take three to four years to get the plundered amount stashed in Swiss bank back to Pakistan.

The reports said that there were 50 secret accounts of Pakistanis in ten major banks in Switzerland.

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people urged to avail 5pc rebate on property tax MULTAN

CuSTOMS TOdAY RepORT

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he Model Customs Collectorate-MCC of Appraisement (West) taking the grievances and issues of traders’ community, importers and Customs agents into consideration has arranged proper seating arrangements in assessment halls and outside the ofQices of deputy collectors and assistant collectors for importers and Customs agents who turn up there for hearing of their cases.

The MCC-Appraisement (West) keeping the difQiculties of those who come for hearing of their cases has Qixed more than 50 chairs altogether in assessment halls and outside the ofQices of deputy collectors and assistant collectors.

The importers and Customs agents have pleased for the seating arrangement made by the MCC-Appraisement for the convenience of them.

“It is certainly a good move made by the MCC-Appraisement (West) to facilitate the visitors, who come there for hearing of their cases”, Abdul Jabbar, one of the im-

porters added. It is worth mentioning that the Customs Today highlighted the issue faced by the Customs agents and importers in its publication on Aug-14.

It may be mentioned here that there was no proper seating arrangements for Customs agents and importers, who came for hearing of their cases.

AfterCustomsTodaytookup theissue,Customssprunginto actionandmadeproperseating arrangementsforvisitors

LHC restrains FTO from exercising contempt of court powers

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LAHORE

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CuSTOMS TOdAY RepORT www.customstoday.com

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he Lahore High Court stopped the Federal Tax Ombudsman from using contempt court powers.

Advocate Akram Qiled a petition, submitted that the Federal Tax Ombudsman was using contempt of court powers under Article 204 of the Constitution.

He said that exercising such power by the department was unconstitutional as the FTO was created as a result of statutory law and it could not use constitutional power.

After hearing the arguments, the court stopped FTO from using contempt of court powers till a Qinal decision on the petition.

Meanwhile, Justice Khalid Mahmood Khan of the LHC ordered owners of business train to pay Rs.2.5 million per day to Pakistan Railways.

The Railways Qiled a petition and sub-

— Exclusive Customs Today photo

xcise and Taxation (E&T) Multan Director Ahmad Saeed has advised people to avail five percent rebate on payment of property tax till September 30.

He said the department was focusing on property tax collection, claiming saying that the Excise & Taxation Department had registered 14 per cent increase in collection of taxes in July 2014, against the corresponding month last year.

He lauded the E&T Multan officials for hard work, saying that this spirit enabled Multan region to be on top of the list in tax recovery in the province since past few years while promising to maintain the momentum. He pointed out that in July 2014, tax amounting to Rs12.7 million had been recovered. When asked about the impact of PTI’s civil disobedience call, he said the people were visiting the office as per routine.

mitted that a contract was signed between owners of Four Brothers business train and Railways authorities under which train’s owner had to pay rent of Rs3.3 million per day. The railways said that train owners were violating the contract and had not

paid a single penny. The department requested the court to direct train owners to pay rent as per the contract. The court, however, passed an order for payment of Rs2.5 million per day to Railways and adjourned hearing of the indeQinite period.

However; as soon as the news published in Customs Today, the authorities concerned of Pakistan Customs-FBR sprung into action and made proper seating arrangements for the visitors.

The importers and Customs agents also expressed their gratitude to Customs Today for highlighting their issues.

117,000 taxpayers issued notices he Federal Bureau of Revenue (FBR) has issued notices to 117,000 potential taxpayers to bring them into tax net during last financial year. However, out of the total persons only 14,182 have filed their returns up to May 2014.

According to data issued by FBR, provisional assessments in cases where the person did not respond to notice have been framed in more than 22,296 cases. A tax demand of Rs8,222 million has been raised in such cases, the FBR said and added tax of Rs139 million have been paid with return and Rs110 million have been collected out of demand created.

The Federal Bureau of Revenue (FBR) has launched an initiative to rope in potential taxpayers into the net and for the purpose data is being collected regarding persons purchasing real estate property in posh areas, expensive vehicles, incurring heavy utility bills and school fees or engaged in taxable business activities. —CT Report

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NATIONAL 03

AUgUST 26 - SEPTEMBER 01, 2014

dubai customs seizes contraband worth Rs478.37 million

DUBAI: Customs officials seized 139 counterfeit items worth Rs 478.37 (Dh17.6 million) in the first half of this year as part of its efforts to discourage smuggling attempts. The contraband seized include apparels, mobile phones and accessories, automotive spare parts, watches and sunglasses. Dubai Customs claimed that it always ensures that its inspectors were taking the extra mile and utilize the best information technology applications to deal with the smugglers.

he implementation of Integrated TransitTrade Management System (ITTMS) is in the doldrums due to unavailability of funds from International donors, it has been learnt reliably.

According to details, the Directorate general ofTransitTrade prepared a “working paper”in connection with the execution of IntegratedTransitTrade Management System (ITTMS) keeping in view the safety of cargo in Oct 2013.

The recommendations incorporated in the working paper included installation of scanners at Chaman,Torkhum andWagah borders to ensure safety of transported cargo, high quality weighing scale, weighing machines, images energizers, high standard software and tracing system for monitoring transportation of cargo through a fully automated system. Later, the“working paper”was sent to the FBR Headquarters for further study.

In this regard, a donors’conference was held in December, 2013 wherein the government authorities and the Federal Board of Revenue (FBR) sought International community’s investment to execute and implement the project.

The United States Assistance for International Development (USAID) and other international donors’agencies attended the conference and expressed their interest in implementation of ITTMS. However, no practical step could be taken in this regard so far. It is to be noted that a committee comprising government and FBR officials was also constituted for the purpose but it also failed to produce any result in this regard.

Meanwhile, a senior officers of the Directorate general ofTransitTrade-FBR, seeking anonymity, informed Customs Today that huge funds were required for the execution of ITTMS and it could not be possible without the assistance of international community. —CT Report

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Customs Adjudication-I decides 211 cases of Rs22.15b In Shahanshah reign, the Collectorate decided 119 cases of evaded duty, taxes amounting to Rs 2.59b; In Manzoor Memon’s reign, the Collectorate decided 92 cases and issued ONOs for recovery of Rs19.56b KARACHI

CuSTOMS TOdAY RepORT www.customstoday.com

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he Collectorate of Customs Adjudication-I has decided 211 cases involving Rs 22.15 billion evaded customs duty and taxes during the time period from November 12 to May 14.

According to the details, three collectors served as Collector of Customs Adjudication-I during November 12 to May 14.

In the reign of Collector Abdul Rasheed Shaikh (Nov 12 to Jan 13), the Collectorate of Customs Adjudication-I could not decide any case.

Subsequently, Dr Manzoor Memon took charge as Collector, Adjudication-I from Jan 13 to June 13. In his reign, the Collectorate of Customs Adjudication-I had decided 92 cases of evaded duty/taxes and issued Order-inOriginals (ONOs) for recovery of Rs19.56 billion. It is pertinent to mention here that the General Amnesty Scheme and Vehicle Amnesty Scheme were also falling in the said time period.

One of the biggest cases of tax evasion of Rs 12 billion related to Pakistan Steel Mills (PSM) also decided in the reign of Collector, Dr Manzoor Memon.

Afterwards, Syed Shahanshah Hasnain took charge as Collector, Customs Adjudication-I and served on the said post from July 2013 to May 2014.

In his reign, the Collectorate of Customs Adjudication-I decided 119 cases of evaded duty/taxes amounting to Rs 2.59 billion.

— Exclusive Customs Today photos

ITTMS in doldrums due to lack of funds

Collector Shahanshah Hasnain It may be mentioned here that the major case of duty/taxes evasion related to Pakistan Telecommunication Company Limited (PTCL) was decided in the reign of Collector, Syed Shahanshah Hasnain.

Now, Ahmed Mujtaba Memon is serving as Collector, Customs Adjudication-I from May 2014.

In his reign, more than Rs 6 billion cases of evaded duty/taxes have been detected in 83 cases and among two of them were of serious nature linked to Pakistan Telecommunication (Mobilink)

Collector Manzoor Memon

Mujtaba detected 83 cases of Rs6b including Mobilink & Shaheen Airline

and Shaheen Air International Limited involving billions of rupees evaded duty and taxes.

It may be mentioned here that the Collectorate of Customs Adjudication-I is dealing with the cases (contravention reports/seizure reports) forwarded by different Collectorates including MCC-Appraisement (West), MCC-Preventive, MCC-Port Qasim, Directorate General of Customs Intelligence and InvestigationFBR and Directorate of Post Clearance Audit (PCA).

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NATIONAL

AUgUST 26 - SEPTEMBER 01, 2014

IMF tranche likely next month as 4th review concludes

ISLAMABAD: With two more waivers for non-compliance, the government and the International Monetary Fund (IMF) are reported to have completed 4th review of $6.8 billion bailout package, paving the way for disbursement of a $550 million tranche to Pakistan likely early next month. Finance Minister Ishaq Dar reached Dubai last Sunday where concluded talks with the IMF mission to Pakistan led by Jeffrey R. Franks.

— Exclusive Customs Today photo

Taxpayers not to follow‘don’t pay taxes’ call: Shahid Asad

Appraisement (east) gears up efforts to recover Rs12.6 million

July 2014: Taxpayers face problems in filing Sales Tax returns KARACHI

CuSTOMS TOdAY RepORT www.customstoday.com

Arrested clearing agent Abdullah with connivance of PRAL staffers erased record of the consignments from WeBOC and returned the Post Dated Cheques and bond guarantee through fake documents

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KARACHI

CuSTOMS TOdAY RepORT www.customstoday.com

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FBRrevenueincreases by8pcdespiteImran, Qadrimarches he tax collection of Federal Board of Revenue (FBR) has not affected by current political turmoil due to Imran and Qadri’s marches which cost Rs 450 billion losses to economy of Pakistan in few days.

As per details, FBR has managed to collect Rs79 billion of revenue in current month till August 18 with an increase of 8 per cent as last year FBR had collected Rs72 billion in the same period.

The FBR sources told Customs Today that sales tax collection has increased by 55 per cent, customs duty 66 per cent as customs had collected Rs12 billion customs duty till now which is more than last year’s collection of Rs7 billion during same period.

Moreover, sources said that FBR has been expecting 12-13 per cent increase in revenue collection this month.

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he Research and Development (R&D) Section of Model Customs Collectorate-MCC of Appraisement (East) has geared up efforts for the arrest of accused involved in the tax evasion to tune of Rs12,600,000 in illegal clearance of panaQlex sheets and other miscellaneous goods.

It is to be noted that the R&D Section of MCC-Appraisement (East) has filed an FIR against M/s Cosmos Enterprises and its clearing agent Abdullah. The officials have also obtained his 7 days remand after arrest. Principal Appraiser, R&D, MCC-Appraisement (East) Shafiullah Khan Niazi informed Customs Today that more arrest would likely to be done within a week in this regard as investigation was underway briskly.

Replying to a question, ShaQiullah conQirmed that the total tax evaded was amounting to Rs12,600,000 and the collectorate had started the process for its recovery.

The sources also conQirmed to this correspondent that an amount of Rs4,100,000 had been recovered so far while the rest Rs8,500,000 was yet to be recovered.

The sources revealed that the

— Exclusive Customs Today photo

he Federal Board of Revenue (FBR) spokesperson and Member Inland Revenue Shahid Asad said that Imran's call for civil disobedience is an irresponsible statement which will not affect revenue operations.

He said that it is not possible to get any exemption from paying tax as no one can argue with shopkeepers while buying daily commodities.“Civil disobedience call will also not affect revenue collection as sales tax and import/export duties are deducted automatically on commodities traded or exported,”he added.

Similarly, he said if someone refused to pay utility bills of gas and electricity, the distribution companies will cut off the connection of those consumers which will not be acceptable by anyone in present era.

Furthermore, he said according to 2010 NFC Award the 57.5 per cent of revenue collected will be distributed among the provinces so if one province fails to collect revenue it will affect distribution of revenue to that province and will be deducted from its share. He said this deduction will also affect its developmental projects as funds were not available in its PSDP for new and ongoing projects. —CT Report

FIR registered against M/s Cosmos enterprises and its clearing agent Abdullah MCC-Appraisement (East) authorities had started scrutiny of the date pertaining to import and clearance the importers following detection of the misappropriation.

It is pertinent to mention here that the arrested clearing agent Abdullah with connivance of PRAL staffers erased record of the consignments from WeBOC and

he taxpayers have been facing great hardships in filing monthly Sales Tax Returns for the tax period of July-2014, due to unavailability Sales Tax Return forms on web portal of the Federal Board of Revenue.

The taxpayers while sharing their views with Customs Today said that they were facing great difficulties in filing their Sales Tax Return due to unavailability of return forms on the FBR web-portal.

They requested the Federal Board of Revenue (FBR) authorities concerned to upload the monthly Sales Tax Return forms on the webportal to facilitate the taxpayers submit their returns for the month of July-2014.

Meanwhile, Karachi Tax Bar Association (KTBA) President Syed Waseem Hashmi demanded the Federal Board of Revenue (FBR) to extend last date for filing of monthly Sales Tax Returns for the “Tax Period of July-2014” due to its unavailability on web-portal.

He stressed that the FBR authorities should first share and discuss with the KTBA any change in the Sales Tax Return forms and then introduce it (if any) for the benefit of the taxpayers.

The KTBA President requested the FBR authorities that the last date for filing of monthly Sales Tax Return for the tax period of July-2014 may be extended to August 31.

through fake documents also returned the Post Dated Cheques (PDC) and bond guarantee.

It may also be mentioned here that the said importer and its clearing agent cleared the consignments in the garb of In-toBond for last 2 years, which has already caused colossal loss to the national exchequer.

Hyderabad Collector Memon declares crackdown on oil smugglers HYDERABAD

ASLAM ANjuM QuReSHI www.customstoday.com

yderabad Model Customs Collectorate Collector Dr Wasif Ali Memon has declared crackdown against illegal trade of smuggled Iranian diesel and ordered subordinates to demolish petrol pumps involved in illegal selling of smuggled oil. Anti-smuggling squad has also been established under supervision of MCC Preventive Assistant Collector Imanullah Khan Tareen to curb the menace of smuggling in Hyderabad.

Sources told Customs Today that in a

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recent move against smuggled oil, customs has seized oil tanker with registration number AP 8000 and recovered 10,000 litres Iranian diesel worth Rs 1 million, near Mitiari Police Station.

Sources also informed that smugglers have established smuggling network across Sindh where they sold smuggled Iranian diesel by contracting with local petrol pumps. "MCC Preventive Assistant Collector Imanullah, in compliance with the directives of MCC Collector Dr Wasif Ali Memon had started crackdown on petrol pumps selling illegal Iranian diesel and demolished many pumps during the operation," they added.

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NATIONAL 05

AUgUST 26 - SEPTEMBER 01, 2014

NA asks Finance Ministry to submit list of loan defaulters

ISLAMABAD: The National Assembly has asked Finance Ministry to provide the list of loan defaulters and reasons for waiving off their loans of Rs 10 million or above during 2008 to 2012. The demand of providing the list of loan defaulters and immunity given to them was forwarded by PTI Member National Assembly (MNA) Junaid Akbar from Malakand. PPP was in the ruling party from 2008 to 2012 and PTI wanted to present their reservations before public with facts and figures.

MFN status: Commerce Ministry seeks tariff-related proposals from NTC A mechanism is being developed wherein the textile and pharmaceutical sectors will have an informal advisory role at NTC with the objective to provide protection to local industry ISLAMABAD

MuHAMMAd ARSHAd www.customstoday.com

he Model Customs Collectorate (MCC) of Appraisement-West is going to launch“Queue Management System”(QMS) in the Collectorate by the end of this month (August) for the facilitation of importers and clearing agents.

This was informed by the Collector, MCC-Appraisement (West) Muhammad Saleem while talking to Customs Today exclusively at his office.

Highlighting the characteristics of QMS, Collector-Muhammad Saleem said that an electronic token-machine would be installed in the Collectorate for speedy disposal of hearing cases and the importers/ clearing agents can get token from the machine and wait for their turn.

He further informed this scribe that CCTV cameras would also be installed in assessment halls for monitoring the working scenario, adding that the working on the said project would be completed by the end of August, 2014. It is pertinent to mention here that the Collectorate of Appraisement (West) has already made proper seating arrangements for those coming in the Collectorate for hearing of their cases. —CT Report

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ANF seizes 80kg heroin at Port Qasim he Anti-Narcotics Force (ANF) Sindh Region claimed to have recovered a big cache of fine quality heroin weighing 80 kgs from a container at Port Qasim.

According to details, acting on a tipoff, an ANF team examined a container laying at Port Muhammad Bin Qasim.

Upon a thorough search, the ANF officials found a cache of fine quality heroin weighing 80 kgs concealed in speciallymade compartments in the container.

According to the ANF spokesman, the accused were attempting to transport the contraband toTurkey from Karachi.

According to the official statement, one accused was also arrested while further investigation is underway. —CT Report

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— Exclusive Customs Today photo

Appraisement (West) to launch Queue Management System for importers

he Ministry of Commerce has sought suggestions from the National Tariff Commission (NTC) to safeguard measures, tariff and para tariffs, duties and subsidies, where deem necessary, in connection with granting most favourite nation (MFN) status to India.

"A mechanism is being developed wherein the textile and pharmaceutical sectors will have an informal advisory role at NTC with the objective to provide protection to local Industry" an ofQicial disclosed to 'Customs Today' while requesting anonymity here.

According to the Commerce Ministry, the NTC besides enforcing and implementing trade defence laws, is mandated to advise the Ministry of Commerce on tariff measures or other forms of assistance to protecting indigenous industry.

Moreover, the Ministry of Commerce has constituted six committees with representation of public and private sectors including - Regional Trade Committee on Agriculture Sector, Regional Trade Committee on Pharmaceutical Sector, Regional Trade Committee on Auto Sector, Regional Trade Committee on Textile Sector, Wagah Trade Committee on Agriculture and Wagah Trade Committee.

Directorate of Agriculture has been established in NTC, with the objective to provide protection to local agriculture sector through prompt application of trade defence measures in case of injury or threat to any import surge from India.

Trade Monitoring Cells in the Ministry of Commerce and TDAP, Lahore have been established. The Commission has levied antidumping duty @ 10.94% for a period of Qive years on 13-02-2011 on dumped imports of phthalic anhydride imported from

India. No countervailing duty has been imposed so far on any goods imported from India It is pertinent to note here that there has been a gradual increase in bilateral trade between the two countries. However, Pakistan maintains Negative List of trade with India which contains 1,209 items.

The said items are banned for imports from India to protect the local industry. Pakistan has been demanding that the issue of Non-Tariff Barriers (NTB) be addressed to allow its exports to have adequate access to Indian market.

Moreover, both sides, in a Commerce Ministers' meeting held in New Delhi in January reached an understanding to normalize trade relations and provide NonDiscriminatory Market Access (NDMA) on reciprocal basis.

Ministry constitutes six committees with representation of public and private sectors

NDMA requires elimination of Negative List on Pakistan’s side and reduction of SAFTA Sensitive List from Indian side. The Joint Statement issued pursuant to this meeting is attached as Annex IL (c) Recent studies estimate the following beneQits to accrue as a result of normalization of trade relations with India:—Vis versa, Commerce Ministry expects a substantial increase in exports of Textiles, Manufactured items; Agricultural products are expected to post potential export increase to India in next three years.

Similarly, there would be considerable increase in import bill savings. GDP growth of Pakistan would be higher. There would be net increase in employment. The number of poor will decrease as a result of enhanced economic activity. There would be signiQicant consumer welfare gains.

MQM resolution: Senate may prod govt to broaden tax net LAHORE

CuSTOMS TOdAY RepORT www.customstoday.com

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he Upper House of the Parliament, which is scheduled to meet on Monday, may press the government to take immediate steps to broaden tax base.

Well placed sources revealed to Customs Today that MQM Senator Col (r) Tahir Hussain Mashhadi has submitted a resolution to the Senate Secretariat in this

regard and the Senate is likely to adopt the resolution on Monday (today).

Broadening of tax net has been a crucial subject for the country’s fragile economy and the successive governments had been making tall claims to broaden the tax net in the past.

Former Federal Board of Revenue (FBR) chairman Sohail Ahmad during the proceedings of a parliamentary committee, some two years, had boasted that the more than 3 million potential taxpayers had been identified. Sim-

ilarly the previous Finance Minister had also tried to take a lead by showing the nation that the newly-identified potential taxpayers had lavish life style, frequent foreign visitors as well as massive resources on their accounts.

But, the incumbent government and its Finance Minister seem very much inclined to push the subject bring in potential taxpayers into the net.

However, some reports have surfaced recently that the FBR had served notices on some of

the identified potential taxpayers and majority of them have ‘reportedly’ responded positively.

Once, the Senate adopts the MQM Senator’s resolution, the government would be to take specified measures to broaden tax net as per commitment made before the House, because under the revised rules and amendments, all Ministries and Departments are bound either to implement resolutions or explain reasons for non-implementation to the House within two months.

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SPECIALREPORT

AUgUST 26 - SEPTEMBER 01, 2014

‘It is our democratic right to protest. We are not breaking any law’

We are not intending to seize Parliament. We are just demanding resignation of Sharif brothers

Economy suffers

AZADI, INQILA

Pakistani rupee continued to lose value, stocks remained lacklu

ISLAMABAD

CuSTOMS TOdAY RepORT www.customstoday.com

usiness community and common people have rejected the civil disobedience call of PTI chief Imran Khan.

Various trade bodies described it as unjustiQied and illegal. The uncertainty and turmoil caused by the Azadi and Inqilab marches adversely affected the economic activities and caused colossal losses to the industry to the tune of billions of rupees. Pakistani rupee continued to lose value, stocks remained lacklustre and business activities came to a standstill in twin cities.

The economy suffered a loss of almost Rs 500 billion as per unofQicial estimates due to untoward situation created in the capital city, demanding the resignation of Prime Minister Nawaz Sharif and dissolution of the Parliament by Imran Khan and Tahirul Qadri.

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Business community was facing serious hardships because of road blockades and suspension of work at Islamabad Dry Port due to which a large number of foreign export orders got cancelled. Overseas Pakistanis were not getting their visas due to long march and sitins in the capital. Other cities of Punjab, especially Lahore, Faisalabad, Multan and Sialkot were also facing a similar situation because of the road blockades by the Punjab government to stop followers of PTI and PAT from taking part into the marches.

In addition, various high-level foreign delegations including IMF team, investors and businessmen also cancelled their visits to Pakistan. Similarly, Sri-Lankan Trade Delegation also postponed its visit for indeQinite period.

All chambers of commerce unanimously rejected the call of civil disobedience. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) asked the business community to distance itself from

Imran Khan’s “don’t pay taxes” call.

FPCCI president Zakaria Usman said that the current political situation and recent call for civil disobedience are not feasible moves as they amount to provoking people not to pay taxes and utility bills. He further said business community is the real taxpayer and the government is bound to use this money in the right direction for development of the country.

Talking to Customs Today, the ofQice-bearers of the FPCCI opined that Khan's call was impracticable. "How can a common user refuse to pay sales tax or levy which is already included in the price of every commodity," said former FPCCI Vice President Munawwar Mughal.

Aamir Abdullah Zaki, President KCCI while talking to Customs Today exclusively said that the image of the country gets tarnished at international level due to such crisis. “The export of raw material was completely stopped from Faisalabad and other cities of Punjab

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SPECIALREPORT 07

AUgUST 26 - SEPTEMBER 01, 2014

Nobody supports illegal and extraconstitutional agenda of two political groups

s colossal losses

AB MARCHES

ustre and business activities came to a standstill in twin cities due to the protest demonstrations by PTI and PAT at Islamabad”, he added. He further informed that the international business community started to switch businesses to other neighbouring countries including Bangladesh and Sri Lanka by ignoring Pakistan due to instable political situation of the country.

President KCCI said that the “civil disobedience movement” will lead the country towards darkness and devastation.

LCCI president Sohail Lashari while exclusively talking to Customs Today on the contemporary political situation said that both the government and opposition need to join hands to work together in the larger national interests of the country. He said that millions of rupees have been lost due to the current political unrest as importers and exporters do not have information about their seized containers.

RCCI President Dr Shimail Daud Arain said he had contacted all chambers, including Karachi Chamber, who have

unanimously rejected the PTI chief’s call.

Another former RCCI ofQice-bearer Sheikh Siddique while talking to Customs Today opined that Khan should have not given such an irrational call because it would not only affect the imports and exports but also small businesses. "If we refuse to pay import duty to the government, then how can we release our containers from the Pakistan Customs" he questioned, adding that "If we fail in getting our containers released, we will not be able to carry out business activities."

President Sialkot Chamber of Commerce and Industry (SCCI) Dr Sarfraz Bashir while expressing his views said that unconstitutional calls of both the political parties adversely affect the national economy and productivity across the country. "We were making efforts for strengthening industrial sector with concept of enhancing the export volume for consolidating the country economically, but unfortunately these political parties are not realizing the gravity of the situation," he said.

Quetta Chamber of Commerce and Industry (QCCI) President Mohammad Asim Siddiqi said that the PTI has not unveiled any future plans as to how the country will run if nobody will pay taxes, duties and utility bills.

“Everybody has to pay taxes and duties to foster economic activities,” he said.

On the other hand, social and economic experts also demanded that the government of PML-N chief Nawaz Sharif should take bold steps to get conQidence of business community and taxpayers. The government must ensure transparency in spending money of the taxpayers by uprooting corruption from all departments. Taxpayers’ money should not be wasted in ill-planned projects, instead it should be spent on healthcare and free education to citizens. Such steps would automatically Qlourish the tax culture in the country.

Talks between government team and Imran Khan and Tahirul Qadri were failed till Qiling of the report and protestors were holding their sit-ins in the Red Zone.

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08 EDITORIAL

AUgUST 26 - SEPTEMBER 01, 2014

Founder & Chairman zulfiqar Ali Editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-308-2106195 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, gulberg, Lahore

edITORIAL

pakistan, IMF evolving consensus

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mid crisis at political front, Pakistan and the International Monetary Fund (IMF) are struggling to evolve consensus on finalizing conditions for completing the fourth review under $6.67 billion Extended Fund Facility (EFF).

Pakistan had so far received $2.2 billion in shape of four instalments of $550 million under 3-year EFF but Islamabad paid back $3.2 billion to the IMF under previous loans obligations. If both sides agreed on certain prior actions then IMF staff will present its recommendation to its executive board and approval will pave the way for release of fifth instalment worth $550 million to Pakistan. Both sides had held review talks at Dubai from August 6 to August 18 but policy level talks could not be concluded because of prior political engagements of Finance Minister Ishaq Dar being head of Parliamentary Committee on Electoral Reforms.

The outstanding issues between Pakistan and the Fund team included raising of electricity tariff, devising mechanism to erase circular debt on permanent basis and autonomy to the central bank of the country.

According to the assessment of the Fund, the IMF is encouraged by the overall progress made in pushing ahead with policies to strengthen macroeconomic stability and reviving investment and growth.

Economic indicators, the IMF says, are generally improving, with growth continuing to gain momentum, inflation on a downward trajectory, and credit to the private sector rebounding sharply. gDP growth is now expected to rise by 4.3 percent in fiscal year 2014/15 (to June 30), compared to a provisional estimate of 4.1 percent in FY2013/14. It is relevant to mention here that the IMF had estimated lower gDP growth target than Islamabad. Pakistan had estimated gDP growth target at 5.1 percent for the current financial year 2014-15.

Regarding the review talks, the IMF states that the meetings and discussions held with Finance Minister Senator Ishaq Dar and Central Bank governor AshrafWathra have been useful.

The government of Pakistan’s reform program was broadly on track through end-June 2014. The IMF mission made excellent progress toward agreement on key policy issues going forward. Discussions will be continuing in the coming days via videoconference from Washington, D.C., with the aim of securing a timely completion of the fourth review.

The Fund mission thanks the Pakistani authorities and technical staff for their cooperation and reaffirms the IMF’s support to the government’s efforts to implement their economic reform agenda.

It is yet to see how both sides translate wordings into actions by evolving consensus which is pre-requisite for releasing of next tranche from the IMF. First, there is need to end political stalemate and present feasible economic plan before the IMF in order to avoid derailment of bailout package that will have far reaching impact for the national economy.

politicalinstabilityhamperingeconomy ISLAMABAD

SM HAIdeR

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ontinuous political instability has caused innumerable losses to the country’s national economy. The downslide of stock market and depreciation of rupee against dollar has resulted into losses of over Rs 500 billion in just one week period.

The nosedive of stock market has caused losses of Rs 300 to Rs 350 billion in the wake of persistent political instability in the country. It has also paved the way for all of sudden depreciation of rupee against US dollar that increased the burden of public debt by Rs 120 to Rs 150 billion in one go. Such whopping increase of debt burden in few days is matter of concern for the economic managers of the

country. The country’s external debt stood at $60 billion and one rupee depreciation hiked the debt in rupee component in the range of Rs 60 billion.

The political instability could severely damage the country’s economy as economic activities were almost halted for last couple of weeks. The country’s exports and imports were almost choked because of usage of containers to block roads. The FBR’s tax collection has slowed down during the last week which is not good sign for achieving highly ambitious tax collection target of Rs 2810 billion in 2014-15. The FBR requires tax collection of Rs 7.7 billion on daily basis in order to touch the desired target of Rs 2810 billion in 365 days of 2014-15.

The halting of economic activities has been damaging the rev-

enue collection and clear indications have started appearing on economic horizon of the country.

This has brought the wheel of economic activity almost standstill in the country with serious implications for tax revenues, exports earnings, portfolio investment, foreign direct investment, industrial production and overall trade and commerce activities of the country. Sooner the matter is resolved the better it will be for the economy of the country.

On revenue collection side, the growth in revenue collection stood at over 100 percent in Qirst 12 days of ongoing month but afterwards it nosedived and touched level of 6 to 7 percent afterwards in last 8 to 9 days. It is evident that political stability has helped different countries to achieve growth on sustained basis. The Malaysia,

Singapore, Hong Kong, China and India have made progress on economic front after achieving stability at political front. Now the time has come when the political forces must evolve consensus on national economic agenda to steer country out of the existing economic and political crisis.

In case the political instability prolongs then the positive results achieved in last one year will evaporate by shattering the conQidence of investors who have started looking towards Pakistan after pause of several years.

At this juncture, economic and political stability is the most important task that can usher new era of prosperity for 180 million population of this country. There is need to shun all kind of differences in order to translate our dreams into reality.

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NATIONAL 09

AUgUST 26 - SEPTEMBER 01, 2014

pCgA demands withdrawal of 5pc tax

MULTAN: The Pakistan Cotton Ginners Association (PCGA) demanded the government to withdraw the SRO issued for the imposition of five percent tax on cotton seed cake. Addressing a press conference, PCGA President Mukhtar Baloch along with its members Haji Muhammad Akram, Shehzad Ali Khan demanded the government to provide relief to cotton industry. He regretted that cotton trade was confronted with crunch due lack of government attention while low cotton price was adding to the farmers woes.

KARACHI

CuSTOMS TOdAY RepORT

Customs investigates QMobile for evading Rs 770m tax MULTAN

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IMRAN ALI KHAN

he Collectorate of Customs Adjudication-I has issued show-cause notices to Shaheen Air International Limited Chairman Ehsan Ali Sehbai, Procurement & Logistics Director Syed Yousaf, Airline Operations Director Faisal Rafiq, Legal Services Director S M Anwar, Shaheen Air International Limited Assistant Legal Advisor Abriaz Ali Khan and scrap dealers Altaf and Basharat on their alleged involvement in Rs 4,145 million tax evasion by importing 47 aircraft illegally against different lease agreements and dismantling, removing and scrapping of 12 air crafts.

According to details, the show-cause notices have been sent on the addresses of the accused persons, however, show-cause notice of a scrap dealer Altaf has been returned back due to wrong address.

It is pertinent to mention that the Model Customs Collectorate (MCC) Preventive in its contravention report has leveled the charges against Shaheen Air International Limited, stating that the airline has committed an offence under Section 2(s), 32(2) & 79 of the Customs Act, 1969 punishable under clauses 8, 14 &47 of Section 156(1) ibid read with the Sales Tax Act, 1990, Income Tax Ordinance, 2001 and Prevention of smuggling Act, 1977.

Moreover, Customs Adjudication-I has fixed the date of August 26 for hearing of tax evasion case against Shaheen Air International and others.

irst time in the history of Model Customs Collectorate Multan,Collector Sarfraz Warraich and his team detected the largest tax evasion of Rs 770 million by Q-Mobile company, the biggest seller of handsets imported from China.

Multan Customs Anti-Smuggling Organisation (ASO) detained handsets of Q-mobile on July 11,2014 which were being transported from Karachi to Multan through Business Express cargo train.The total number of smart phones detained are said to be 5001 imported

by New Allied Electronics and Masses Digicom Limited from China.

Both the companies’representatives came to the Customs House for clearance of their handsets by submitting documents of their detained handsets.After which the customs started verification of their smartphones through documents and International Mobile Equipment Identity (IMEI),a digit code that uniquely identifies mobile phone sets.

During the verification,Customs authorities found that above-mentioned companies had paid less customs duty on the smartphones.

Customs charges duty in three different tariffs according to the range of handset:Rs 150,Rs 250 and Rs 500 on low price,medium price and smart phone handsets respectively.

The authorities realised that the duty of smartphones was Rs 500 per handset,but these companies paid only Rs 250 per handset for clearing their consignments.They have allegedly evaded tax of Rs 770 million during clearance of their previous consignments.

Model Customs Collector Multan has detected the highest tax evasion in the history of Multan customs by Q-Mobile.

Talking to Customs Today,Multan Customs

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wRITe TO uS YOuR gRIeVANCeS: Through CuSTOMS TOdAY platform HeLp deSK, now you have chance to dIReCTLY write your problems to top govt. functionaries.

If you have any grievances, queries, questions or suggestions, you can write in this section as it provides easiest access to you to approach Customs and Revenue authorities. wHO can write in this section?

Importers & Exporters, Customs Agents, Chambers of Commerce, Trade Associations and Customs Officers TO wHOM you can write?

Honourable PM, Minister/Secretary for Finance & Revenue, Minister/Secretary for Ports and Shipping, FBR Chairman, Member Customs and Chairperson Senate/National Assembly Standing Committee on Finance & Revenue.

Send your letters at: newsdesk@customstoday.com.pk

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Collector Muhammad Sarfraz Warraich said that this was made possible only by the anti-smuggling and anti-tax evasion operations of his

— Exclusive Customs Today photo

Shaheen Air, others receive notices in Rs 4,145m tax evasion case

Collector Sarfraz Warraich

staff.He said that verification was difficult due to bulk quantities but his staff assisted him a lot during the verification process.

Meanwhile,an FIR has been lodged against the companies and the challan has been sent to the Adjudication-1,Multan for further proceedings.

Meanwhile,a team of Model Customs Collectorate Multan raided a petrol pump in Dera Ghazi Khan and recovered 80,000 litres of smuggled diesel worth Rs8.8 million from two oil-tankers.

Multan Customs Collector Sarfraz Warraich told newsmen that two oil-tankers (TC-909) and (TKM-719,owned by Mohiuddin and Noor Ahmad,residents of Quetta were intercepted at a petrol pump in DG Khan.However,when they were asked to produce documents of the diesel, they failed to show any evidence.At which the customs team seized both oil-tankers.

Meanwhile,Multan Customs Intelligence and Investigation (I&I) has seized a truck loaded with imported tyres worth Rs 2.9 million in a raid at Khanewal road.

The Customs Intelligence and Investigation Inspector Saleem has taken the action along with constable Zulfiqar on an anonymous information and seized the smuggled truck loaded with tyres.

A source told Customs Today that while checking,the driver of the truck failed to produce required documents,on which customs officials seized the truck.

“The truck was coming from Quetta and destined to Lahore in its attempt to smuggle tyres but failed due to timely action taken by customs Intelligence and Investigation team” he added.

The FIR has been lodged and further investigations were under process.

chase invoices/documents references which are of dated preceding months (i.e. issued prior to July, 2014).

Under Section 10(1) of the Sales Tax Act, 1990, excess input tax against output tax on supplies (other than exports and zero rated supplies) is to be carried forward to the next tax period and is to be treated as input tax for that period.

The newly uploaded sales tax return is not allowing credit of excess input tax brought forward from preceding tax months.

Sir, we have been informed by some KTBA members that, when they verify the sales tax returns online after saving the same amount of sales tax liability for the month changes as compared to what it was, when the return was saved.

For that reason, they have been unable to Qile the sales tax return as

the sales tax liability to be deposited as per the veriQied version is different from the actual sales tax liability which has been deposited by the registered person.

In addition, some of our members have informed that GDs relating to exports are not uploaded on Annexure “D” on timely basis which cause delay in Qiling of the sales tax returns.

Moreover; when GDs are uploaded on the Annexure “D”, the total of that is not shown on the main page of the sales tax return form.

I hope that you will look into the matter and issue effective orders in order to redress the problems faced by the taxpayers.

e-filing of Sales Tax Returns To,

The Honorable Chairman, Federal Board of Revenue, Constitution Avenue, Islamabad Dear Sir, I would like to draw your kind attention towards the issue at FBR portal being faced by our members in Qiling of the sales tax returns for the month of July, 2014.

Sir, under SRO648(1)/2013, certain types of supplies are exempt from further tax at the rate of 1per cent on sales made to unregistered persons. The “drop down menu” of sales type of annexure “C” does not show the types of sales which are exempt from further tax under the aforesaid SRO. Furthermore, under Section 7(1)

of the Sales Tax Act, 1990, if a registered person did not claim the input tax within the relevant tax period, he may claim such input tax in the return for any of the succeeding six tax periods. The newly uploaded sales tax return is not allowing input tax/sales tax withholding on pur-

Yours’ Truly, Syed Waseem Hashmi, President KTBA, Karachi

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10 NATIONAL

AUgUST 26 - SEPTEMBER 01, 2014

FBR asked to simplify e-filing of sales tax returns

KARACHI: The Karachi Tax Bar Association (KTBA) has urged the Federal Board of Revenue (FBR) to remove certain flaws from the amended tax laws to make e-filing of sales tax returns hassle-free. Taxpayers failed to e-file their returns for July through FBR’s web-portal because of amendments in the Finance Act 2014. The tax bar pointed that it was because some appendices were not in agreement with the sales tax returns.

Customs I&I increases revenue 100pc

Customs, LeAs cooperation to uproot smuggling: Nisar Ahmad MULTAN

IMRAN ALI KHAN

www.customstoday.com ustoms Intelligence and Investigation Additional Director Nisar Ahmad claimed that the Customs Intelligence and Investigation had increased revenue almost 100 percent in the last fiscal year due to effective monitoring of smuggling activities.

The situation warrants Intra and Inter departmental communication and help between Pakistan Customs and other Law Enforcement Agencies (LEAs) to root out the menace of smuggling.

Talking to CustomsToday exclusively, Nisar Ahmed pointed out that the Customs required to be more vigilant as well as ruthless while dealing with the smuggling and smugglers as they had adopted sophisticated methods and latest tools for carrying out their illegal activities, adding that the Customs also needed modern technology and weaponry to counter all such activities.“We need patrolling vehicles to effectively perform duty in the field and the Customs Intelligence and Investigation wing must be equipped with modern technology and latest gadgets to trace and thwart smuggling attempts,” the I&I additional director asserted. He informed that his department had received a new wellequipped cab from the federal government which had added to its strength, adding that more and more advanced technology was required to tackle smuggling.

“Look the Intelligence and Investigation

— Exclusive Customs Today photo

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wing lacks professional staff which otherwise is prerequisite while the existing staffers need professional training to build their capacity for discharging their responsibilities in a better manner,” he elaborated.

Nisar Ahmed regretted that the existing manpower of Customs Intelligence and Investigation had grown old, adding that fresh blood was need of the hour to make operational activities strong and vigorous.

“We need fresh recruitment to boost the department’s performance and tackle the new techniques adopted by smuggling,” he stressed.The I&I additional director emphasized that now tariffs were nominal and people should pay tariffs instead of evading taxes which not only cost more but also created problems for them.

“Unfortunately industrial raw material like plastic Danah etc is being smuggled the most

to evade Customs Duty and tariffs and we need to educate our people about tax culture,” Nisar Ahmed pointed out, adding that people still lacked knowledge about taxes and custom duties due to which they create problems for themselves by evading a small amount.

He informed that there was no recruitment in Custom Intelligence Multan since 1994 which had affected performance of the department adversely, adding that fresh blood

in the department would improve working and its efficiency.“We are facing acute shortage of field officers because the Multan Customs Intelligence and Investigation has to manage a vast area including Rajanpur, Dera ghazi Khan to Sakhi Sarwar, Bahawalpur to Sadiqabad and whole Sahiwal in its jurisdiction,” Nisar Ahmed revealed, adding that the Customs I&I had increased revenue almost 100 percent.

“Honestly speaking, sometimes we do face life threats from smugglers like recently when we seized two truck carrying contraband goods worth Rs 3.5 million owned by a notorious smuggler. He called us on the phone, asking to release his trucks otherwise he will not spare us”, he shared.The Customs I&I additional direction went on to say that there were some suggestions for the establishment of a border security force to augment the Customs efforts.

To a question, Nisar Ahmed said that tariffs had been rationalized to a greater extent and there was also tax reforms over the past few years, adding that but smuggling could not be stopped because a vehicle purchased in Pakistan cost Rs5 million which was, on the other hand, easily available for half of (Rs2 to 3 million) its price .“Another major issue for the Multan Customs Intelligence and Investigation is of space as the building housing our office is rented and when we seize huge quantity of goods we do have to submit these goods at Multan Dry Port due to insufficient space,” he lamented. Despite the fact that Multan Customs had almost doubled its revenue, yet there was no such budgetary allocation for it for the past few years.

3policemendismissedforimplicatingcustomsappraiserinmurdercase LAHORE

M HAYAT

www.customstoday.com he Punjab Police have dismissed three policemen and suspended another for allegedly implicating Lahore Dry Port Customs Principal Appraiser Malik Azizur Rehman in a murder case.

Official sources claimed that Aziz was implicated in the murder case because he had exposed a Rs 1.5 billion tax evasion scam against a trading company, Ikram International. Later, the company owner allegedly bribed policemen to register a fake murder case against the appraiser.The police arrested Rehman on his way to Lahore Dry Port from gujranwala and locked him in Kot Ladha Police Station.

Later, Customs Appraisement Collector Muhammad Zahid Khokhar wrote a letter to the Federal Board of Revenue (FBR) and to the senior police officers for investigations into the matter. On investigation, the Punjab Police found four policemen of Kot Ladha Police Station guilty of taking bribe to implicate the appraiser.

Three policemen have been dismissed and another suspended in the case.The Kot Ladha Police had arrested Rehman in a murder case that occurred in 2005.

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www.customstoday.com AUgUST 26 - SEPTEMBER 01, 2014

CARTOONSSPECIAL 11

Trade fair inaugurates China-Mongolia customs arrangement

ERONHOT: The China-Mongolia-Russia Economic and Trade Cooperation Fair opened on Wednesday with the inauguration of a center to process a cost-saving customs document in Erenhot, a city on the China-Mongolia border. The center will handle ATA Carnets, an international customs document which allows duty-free temporary export and import of goods for up to a year. Its establishment will help boost border trade, economic development and cultural exchanges, said Lu Ming.

LHCissuesstayorderagainsttaxnoticetoMinhaj LAHORE

CuSTOMS TOdAY RepORT www.customstoday.com

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he Lahore High Court (LHC) issued stay order against Rs700 million tax notice to Minhajul Quran International issued by Federal Board of Revenue (FBR) and restrained it from recovery of taxes from welfare organization.

As per reports, Minhajul Quran had filed an application in LHC, demanding that MuQ is a welfare organization; therefore, it was given exemption from paying any tax in 1982. However, in order to oppress MuQ and its administration, the present government has sent a notice on July 9 for recovery of taxes.

The FBR lawyer told the LHC that after amendments to the tax laws, the MuQ would have to pay taxes. “Qadri and Minhajul Quran had been sent three tax notices regarding tax recovery but neither the PAT chief nor his institution responded to those notices,” he added.

However, the court issued a stay order restraining FBR to recover tax from the welfare organization.

ChinablocksHershey’s productsoverhealthrisk hina Customs has blocked import of a number of Hershey's milk products into China after it was found that they contained banned artificial sweeteners and coloring agents.

On the other hand, a spokesperson for Hershey explained that the milk beverages, seized by Customs, were manufactured by an authorized US licensee. "We respect China's food security laws and try to abide by all food regulations. We will continue to work to ensure that third parties import only Hershey products into China that meet China’s standards," he added. A official from China Customs told that the Hershey's strawberry milk beverage and white chocolate milk beverage contained a food coloring, Red 40, and a sweetener, Stevia, which were permitted in other foods and beverages in China but not in dairy products.

It is not the first time that China has banned a food product. Recently a similar case was surfaced when China banned meat products of a company which also exported rotten chicken and beef to McDonald's Pakistan. The company's name was Shanghai Husi Food which was banned for selling chicken and beef beyond the date of expiry by declaring it fresh by changing expiry dates. —CT Report

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Slow import, export shrink trade deficit he slump in exports and import narrowed down the country’s trade deficit by 16.58pc during the first month of ongoing fiscal year (2014-15).

According to trade figures released

by Pakistan Bureau of Statistics (PBS), imports decreased by 11.80 percent in July 2014, as compared to the imports in the corresponding month last year.The imports into the country were recorded at $3.364b in July 2014 against $3.814b in July 2013, the PBS data revealed.

Exports from the country, however, also decreased by 7.88pc, declining from $2.095b in July 2013 to $1.930b in July 2014. Based on the figures, the overall trade deficit in July 2014 was recorded at $1.434b as compared to the deficit of $1.719, showing a deficit of 16.58 per cent. —CT Report

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AUgUST 26 - SEPTEMBER 01, 2014

govt asks civil servants to declare assets

ISLAMABAD: The Establishment Division has issued a circular to employees of all ministries and institutions asking them to declare their assets details. It is obligatory for all civil servants to declare their assets after the start of new fiscal year; however except from FBR, other employees of different ministries and institutions have not yet declared their assets despite passing more than one month's period. The Establishment Division issued a circular asking all ministries to bind their employees to declare assets.

Customs seizes contraband goods worth Rs7,409m LAHORE

CuSTOMS TOdAY RepORT www.customstoday.com

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s part of measures to eliminate the menace of smuggling, Pakistan Customs under leadership of DG I&I Lutfullah Virk seized contraband items worth Rs7409.328 million during last Qinancial year.

Smuggled items include cloth, tea, tyres & tubes, Iranian diesel, polyethylene HDPE Plastic Dana, cigarettes, electronic applia n c e s , NDP/smuggled vehicles, generators and auto parts. On the other hand, the department claimed that it had traced main routes of smuggling as well as the areas/cities where smuggled goods were stored, supplied and consumed.

The Directorate General of Intelligence & Investigation of FBR has

launched a massive crackdown on owners of warehouses where smuggled goods are kept. Consignments of generators, cloth, tea, plastic dana, air conditioners, LED TVs, and cigarettes etc. have been seized from warehouses located in various cities.

The Customs sources informed that to strengthen the anti-smuggling operations, the Directorate General of Intelligence & Investigation had been designated as focal agency to pool available resources to curb the menace.

The sources said that the assistance from other Law Enforcement Agencies had also been solicited and stern action had been taken against the smugglers including registration of FIRs. The sources cited that more than 70 illegal petrol pumps, involved in the sale of illegal Iranian petrol and diesel had been demolished with the assistance of the districts administration, the Police and Rangers in various parts of the country.

dg I&I took stern action against smugglers by registering FIRs

— Exclusive Customs Today photo

directorate general of Intelligence & Investigation designated as focal agency to pool available resources to curb menace of smuggling

Published by M. F. Riaz, Off. 91, 3rd Flr, gul Plaza, M.A. Rd., Karachi, for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, Off: I. I. Chundrigar Road, Karachi