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PAkISTAN’S FIRST INDEPTH NEwSPAPER ON CUSTOMS
AbC Certified vol 2 Issue No. 46
karachi, Tue Dec 02 - Mon Dec 08, 2014
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Regd. No, MC-1381
Price Rs. 50.00
JOINING COMMERCE MINISTRY
Customs Officer Rubina Athar joins Commerce Ministry as additional secretary. | SEE PAGE 12 | CURbING TAx EvASION
INTEGRITY & PERFORMANCE UNIT
FBR is evolving plan to shift focus from broadening tax net to getting due taxes from existing huge taxpayers. SEE PAGE 02 | INITIATING RS 20M RECOvERY
— Exclusive Customs Today photo
Collectorates of AppraisementEast and Port Qasim start issuing demand notices to importers to ensure revenue recovery in import of steel billet consignments. | SEE PAGE O3 | ISSUING NOTICE
Appraisement-West decides to issue short revenue recovery demand notices against ICI for undue advantage of SRO1125(I)/2011. | SEE PAGE 04 |
ISLAMABAD
MUHAMMAD ARSHAD www.customstoday.com
he Integrity and Performance Management Unit (IPMU) has become functional with induction of two top ofMicials. HRM Chief Bakhtiar Muhammad and Second Secretary Asset Declaration Muhammad Adil Khan have been appointed to execute their duties at the unit. The appointment of two more ofMicials is still pending. HRM Member Khawaja Tanveer Ahmad will be in-charge of the unit. “IPMU has been established to monitor integrity and honesty of ofMicers of Customs and Internal Revenue Service (IRS) of Grade-20 and above. Whereas, integrity and honesty of ofMicers hailing from lower grades from 20 will be monitored by heads of their respective departments,” a source at FBR said.
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The source said that reports about the performance and integrity of ofMicers complied by the unit would be used for carrier management. There is also a proposal under consideration to link promotions of ofMicers with report of the unit, the source said. “However, further formation of rules are required because promotions are made under some set rules and regulations prescribed by the federal government and issued by Establishment Division,” he added. The source said that the circles concerned were critical of the said proposal of linking promotion of ofMicers with rules and regulations other than prescribed by the competent authority and institution. The source added that IPMU was established to introduce and maintain a system of accountability of performance, competence and conduct of the employees and the unit would en-
Unit has two functional cells - Integrity Management Cell and Performance Evaluation Cell. Each is headed by a BPS-20 official
sure appropriate measures, including internal control to combat corruption within the organisation under the FBR and keep an eye to ensure the integrity of employees that is veriMied periodically through applicable procedure which shall be made one of the criterion for promotion and incentives. “The unit has two functional cells i.e. Integrity Management Cell (IMC) and Performance Evaluation Cell (PEC). Each is headed by an ofMicer of BPS-20,” the source observed, adding that on integrity management issues the IPMU would submit periodical reports to FBR Chairman Tariq Bajwa and on performance evaluation, however IPMU would share Mindings with the member concerned and after incorporation of views the reports would be forwarded to the FBR chief. Customs Today had reported last month about a tug of war among the FBR ofMicials on the nature of terms of reference of the unit.
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NATIONAL
DECEMBER O2 - DECEMBER O8, 2014
AGP recommends recovery of Rs 1.14 million from former Gwadar Port Authority head
ISLAMABAD: The Auditor General of Pakistan (AGP) has recommended recovery of Rs 1.14 million from the former Gwadar Port Authority (GPA) chairman. AGP report read that the former GPA chairman was paid Rs 1.14 million on account of a three-day tour to Singapore. “As the rule 13.1 of the manual of travelling allowance states that when travelling abroad by air, road or sea, each officer will be entitled to actual cost of passage by public transport in accordance with the class of accommodation to which he is entitled,” the report added.
LAHORE
M HAYAT
www.customstoday.com customs special judge has sent an accused to judicial custody for setting up four fake companies to evade duty and taxes. Muhammad Asghar Shah was arrested by the customs I&P department and Customs Judge Tanveer Akbar extended six-day physical remand of the accused. However, the judge sent the accused to the judicial custody, ordering the customs officials to produce him on December 5. Another two accused have been give interim bail in the case. The Model Customs Collectorate (Preventive) unearthed the scam involving millions of rupees evasion of customs duty and taxes via registration of fake companies and forged import documents. According to details, four companies have been involved in duty and tax evasion for a long time. “Initially three goods declarations filed have been intercepted at Air Freight Unit Lahore. The preliminary investigation conducted so far transpires that a freight forwarding and shipping agent had got registered some importing firms in his and relatives names which were being operated from addresses which do not exist,”they added. They said that the illegal practice was being undertaken through the issuance of fake/dubious house airway bills against Master Airway Bill whereby the amount of freight had been suppressed manifold on the house airway bills. The sources added scrutiny of record revealed that the said practice was being done for a long period of time inflicting heavy losses to the national exchequer.
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PTCL submits 100-page reply in tax evasion case he Pakistan Telecommunication Company Limited (PTCL) has submitted a 100-page reply in the Collectorate of Customs Adjudication-I in tax evasion case. Sources informed Customs Today that Customs Adjudication-I Collector Dr Farid Iqbal Qureshi had fixed the hearing of PTCL tax evasion case for 24 November. The collectorate in the last hearing on 13 October asked the departmental representative of PTCL to present complete contract order of the import of the telecommunication equipments. The hearing was also attended by Saudul Hasan, the departmental representative of Directorate of Customs Intelligence and Investigation. The collectorate has not given the next hearing date in this regard. —CT Report
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FbR plans to come hard on huge business empires, real estate tycoons FBR thinks it is more feasible to collect due taxes from existing taxpayers, especially huge international companies and corporate sector instead of finding new taxpayers of minor worth ISLAMABAD
MUHAMMAD ARSHAD www.customstoday.com
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he Federal Board of Revenue (FBR) is evolving a plan to shift focus from broadening the tax net to getting due taxes from the existing huge taxpayers. The FBR is willing to increase tax capacity of the existing taxpayers which were not paying tax in required and prescribed ratio instead of focusing on those which were not paying due taxes. A source in the FBR told Customs Today that the plan would be implemented after thorough discussions at almost all forums. The source said that the FBR was of the view that instead of unearthing new taxpayers of minor worth, it was more feasible and practicable to collect due taxes from the existing taxpayers, especially huge international companies and corporate sector. According to FBR’s Mindings, although corporate sector was contributing signiMicantly in total collection of sales tax of the FBR, but not paying income tax in proportion with the growth of this sector. “Main category is cooperate sector with sub sector cigarette, cement, barrages sugar, telecom, banking, oil and gas, construction industry and others,” the source said, adding that the FBR was working to analyse whether these sectors were paying due taxes or not. “The FBR has come to the conclusion that although telecom sector
— Exclusive Customs Today photo
Fakecompanies’ ownerssenttojudicial custodyfortaxevasion
had 25% share in total volume of sales tax collected by FBR, yet not paying income tax because on account of showing losses, therefore, tightening of enforcement measures along with making the auditing procedures more effective also under discussion,” he said adding that same situation was with cigarette and cement sectors. The source said that petroleum and banking sectors were paying income tax but not to the proportion of their growth. He said the FBR was of the stance that tax evasion worth billions of
FbR Chairman Tariq bajwa
rupees could be unearthed by tightening the audit procedures as well as evolving mechanism for checking the under-invoicing by mega companies, which would be equal to volume of tax collection from thousands of new taxpayers and revenue collection could only be increased by checking the tax evasion by big companies. “Capacity building of those units which are holding jurisdiction of these companies is also under the focus of FBR,” he said. However, he said the plan would very likely not yield good results be-
Majid Yousfani outlines ambitious WeBOC expansion plan beyond Customs KARACHI
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SYED MUHAMMAD ASLAM www.customstoday.com
he Directorate General of Reforms and Automation, Customs is busy in finalizing a list of over four dozen ministries and departments of the government that it plans to approach to convince them about the benefit of being a part of WeBOC, the automated clearance system of the Pakistan Customs. Talking to Customs Today, the Director Directorate of Reforms and Automation, Abdul Majid Yousfani said that the exercise is initiated on the direction of the Chairman of FBR, Tariq Bajwa who appreciated R&A’s efforts and asked it to approach government ministries and departments to be a part of the WeBOC.
Yousfani said exercise is initiated on directions of Tariq bajwa
The list includes Ministry of Commerce, Ministry of Foreign Affairs, Economic Affairs Division, National Tariff Commission, Trade Development Authority of Pakistan (TDAP) and Board of Investment. In addition, the R&A would also be approaching the relevant authorities to help automate the particular processes and procedures of the Trade Policy, Export Policy Order and Import Policy Order on the WeBOC. For instance, the automation of processes and procedures related to issuance of exemption certificate issued for diplomatic cargoes by the Ministry of Foreign Affairs would help streamline the work, both for the Ministry and the Customs. The ambitious plan to bring huge number of government ministries and departments would push WeBOC expand beyond Web Based One Customs to become a singular One Window automated platform for all.
cause the Finance Ministry and other quarters concerned were not willing to support the FBR in this regard, because the government would not be unable to come hard on huge business empires and real estate tycoons. “Business tycoons want FBR’s focus conMined to locating new small taxpayers and they have also convinced the international donors and Minancial institutions on their stance that is why donor agencies and Minancial institutions can repeat their demand of broadening the tax net,” he observed.
Faisalabad Excise Dept collects 25% more property tax FAISALABAD
HUMAYUN ZAHID
www.customstoday.com he Excise andTaxation Department has collected 25 percent more property tax in October 2014 as compared to the corresponding period of last year. A source told CustomsToday that the department has collected property tax worth Rs 260.02 million in October of fiscal year 2014-15. In the corresponding period of last year the department had collected Rs 180.3 million property tax. The department has exceeded the revenue by collecting Rs 79 million more. Excise andTaxation Director General Rana Intikhab Ahmad said the increase in property tax revenue was due to good performance of the officials.
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NATIONAL 03
DECEMBER O2 - DECEMBER O8, 2014
Appraisement-East to float tenders for maintenance, repairs
KARACHI: Model Customs Collectorate of Appraisement-East will be floating tenders for air conditioners’ repairs and supply of uniforms for sepoys and drivers. Sources said that MCC Appraisement-East has about 20 sepoys and 18 drivers. The tender for repairs and maintenance of air conditioners would also be floated. The Collectorate is equipped with around 40-50 air conditioners installed at various offices spread over ground, mezzanine and first floor of the Customs House, Karachi.
Punjab govt approves 4 special police stations of excise and taxation LAHORE
IMRAN MEHAR
Appraisement-East, Port Qasim initiate Rs20m recovery Appraisement-East has asked the Intelligence Branch officials to prepare an award list of outstanding officials
www.customstoday.com KARACHI unjab Government has approved the formation of provincial narcotics control committee and to establish four special police stations of excise and taxation. These police stations will be established in four divisions of Punjab including Lahore, Mianwali, Multan and Rawalpindi. Chief Minister Punjab Mian Shahbaz Sharif has approved the summary of Secretary Excise Khalid Masood Chaudhary to establish four police stations and the formation of narcotics control committee. After the approval of this summery, the Secretary Excise has directed the director general to take necessary measures to establish these police stations in four divisions as soon as possible and to form the committee of narcotics control. These excise police stations will control the narcotics business and reduce the use of drugs in these divisions. These police stations will be fully authorized in investigation of accused to control the crime in their respective areas. ETO, AETO and three inspectors with constables will be taken from every division to appoint in their respective police stations. They will get training from antinarcotics training centre, Rawalpindi. ETO will wear uniform equal to SP and AETO will use DSP level uniform.
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SOHAIL RAb kHAN www.customstoday.com
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he authorities concerned of MCC-Appraisement (East) and MCC-Port Muhammad Bin Qasim have initiated the recovery process into the violation of SRO421(I)/2014 pertaining the import of steel billets, it was learnt here on Monday. The sources informed Customs Today that the authorities concerned of both the Collectorates agreed upon the audit paras sent by the Directorate General of Internal Audit-Customs consisting of Rs 20 million pointed out amount altogether short revenue recovery reported in the import of steel billets. The Collectorates have started to issue demand notices to the several importers in order to ensure revenue recovery in the import of the steel billets consignments. The sources further disclosed that the authorities concerned of the Directorate General of Internal Audit-Customs have also approached to the Directorate of Reforms and Automation in order to rectify the issues pertaining to the clearance of the consignments in WeBOC, automated system. It is pertinent to mention here that the Directorate General of Internal Audit-Customs has sent “audit paras” to the MCC-Appraisement (East) and MCC-Port Muhammad Bin Qasim which pointed out a short recovery amounting of Rs20 million altogether in clearance of steel bil-
Collector Najeebur Rehman Abbasi
lets under SRO421/2014. It may be mentioned here that the Internal Audit-Customs has sent audit paras amounting Rs15million short recovery in the clearance of steel pallets during the time frame from July to October to the MCC-Appraisement (East) and an amount of Rs5million short recovery to MCC-Port Muhammad Bin Qasim in
the clearance of steel billets consignments for the same period i.e. July to October. It is pertinent to mention here that the Directorate of Internal Audit-Customs in its audit paras from July-October observed that the importers had misused the SRO421 of the Sales Tax Act, 1990 in the clearance of steel billets.
It observed that the sales tax value for the clearance of steel billets consignments at US550per Kg; however; those consignments had been cleared at the sales tax rate of US$485 per kg. “The ofMicials of MCC-Appraisement (East) and MCC-Port Muhammad Bin Qasim had also calculated the GST @16 percent in the clearance of the steel billets consignments during the period of July to October-2014,” the report added. Meanwhile, the Model Customs Collectorate of Appraisement-East has asked the Intelligence Branch ofMicials to prepare an award list of outstanding ofMicials. Customs Today learnt that the Collector-MCC Appraisement (East) Najeebur Rehman Abbasi has asked the ofMicials concerned to prepare the list and seek his approval. Sources said that the customs ofMicials had requested the authorities concerned to release the award list for the employees of Intelligence Branch for their outstanding and untiring efforts in detecting tax evasion cases. The sources said that the intelligence ofMicials of the collectorate have not been awarded for the last several years and the said directives of the collector would play a vital role in uplifting the morale of the intelligence ofMicials. They said that the reward for intelligence unit should be released on time in the future so that the spirit and enthusiasm of the ofMicials would remain high. They conMirmed that the collector would approve the reward list in a few days. It would be then forwarded to the FBR Headquarters, Islamabad.
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DECEMBER O2 - DECEMBER O8, 2014
Clearing agents urged to ensure presence during ANF examination
KARACHI: Clearing agents have been asked to ensure their presence during the ANF examination. The presence of nominated clearing agent is a mandatory requirement during the execution of the activity. A letter written to Karachi Customs Agents Association (KCAA) President Qamar Alam by DP World said it is continuously receiving complaints from the ANF authorities that most of the clearing agents are frequently coming late for processing of their shipments.
Rs5b allotted for Customs Collectorate near wazirabad: FbR
ASO seizes 60 cameras, curtain cloth he Anti-Smuggling Organisation (ASO) has captured 60 imported digital cameras in an operation. The ASO captured the cameras, including different brands of handy cams ofVictor, Sony, Sharp,Toshiba, Kyocera and Panasonic of different origin. Inspector Abdul Samad along with Deputy Superintendent Ghulam Raza Shah conducted the operation and seized the imported digital cameras from a warehouse near Shah Rukne Alam Market. The ASO also captured 592 yards of imported curtain cloth in another operation near General Bus Stand on Vehari Road.The Rs 600,000 worth curtain cloth in shape of 10 rolls was smuggled from Iran. Inspector Abdus Samad was assisted by Asghar and Aslam Qureshi in the operation. Meanwhile, the ASO impounded two non-customs paid vehicles from the Multan bypass during a routine examination. SuperintendentTanvir Malik and Inspector Haq Nawaz impounded both vehicles on a suspicion. One of the vehicles is a land cruiser (JAB-059 Quetta) worth Rs 1.2 million. The second impounded vehicle is a Toyota Vitz (JAF-238 Quetta) worth Rs 700,000.
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he Punjab Revenue Authority (PRA) has decided to take legal action against catering company that provided food at the three-day rally of Jamaat-e-Islami at Minar-e-Pakistan. PRA has gird up its loins to receive sales tax from caterer RafiqueTikka for providing food to the participants of the rally in Lahore. As many as 70,000 people participated in the rally. According to PRA, the caterer earned millions of rupees by serving food to the rally participants, but did not pay sales tax. —CT Report
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ZAFAR MALIk
www.customstoday.com
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he Punjab Board of Revenue has allotted as many as Mive acres of land for establishing a Model Customs Collectorate along the River Chenab Toll Plaza near Wazirabad. Now, the construction of proposed MCC would begin soon in this regard. According to the senior FBR ofMicials, the federal government had Minally approved a mega plan of
establishing a Model Customs Collectorate on Mive acres of land along the River Chenab Toll Plaza near Wazirabad here. According to the senior ofMicials of the Federal Board of Revenue (FBR), Rs5 billion would be spent on the establishment of this new Model Customs Collectorate (MCC) near Wazirabad. The FBR ofMicials added that the federal government has also released the needed funds to FBR, saying that the warehouses, judicial complex, barracks and ofMices of the senior ofMicials and junior staff would also be made available in this proposed MCC, besides conducting
new recruitments of the ofMicials there. Senior FBR ofMicials revealed that this MCC would be responsible to thoroughly check all the luggage and consignments reaching at the River Chenab Toll Plaza from Afghanistan via Peshawar and Rawalpindi , besides, taking rapid legal action against the responsible persons by whom the illegal and smuggled valuables including gold, vehicles , ornaments, cloths and electronics would be recovered. This MCC would conMiscate all the smuggled valuables and would ensure the rapid legal action against the accused smugglers in this re-
gard. This legal practice would generate big revenue of billions of rupees annually. While, the senior Customs ofMicials narrated that there was a big number of the smuggled luxury vehicles plying on roads in Gujranwala Division’s all the six Sialkot, Narowal, Gujrat, Mandi Bahauddin, HaMizabad and Gujranwala districts, as their owners were not bringing these b smuggled vehicles on the GT Road. However, the Customs ofMicials would also be able to launch a vigorous drive against these smuggled luxury and non-luxury vehicles, they added.
Appraisement-West to issue notice to ICI Pakistan for undue benefit of SRO-1125 KARACHI
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SOHAIL RAb kHAN www.customstoday.com
he Appraising Intelligence Branch (AIB/R&D) of Model Customs Collectorate of Appraisement-West has decided to issue short revenue recovery demand notices against importer ICI Pakistan for allegedly taking undue advantage of SRO1125(I)/2011 in clearance of “WANNATE 8019” (chemical), it is learnt. Sources informed Customs Today that the authorities concerned have started to scrutinise the clearance data of ICI Pakistan on orders of the Appraisement-West collec-
— Exclusive Customs Today photo
Action against JI rally food provider for not paying tax
SIALKOT
Collector Muhammad Saleem
tor. “During scrutinising the data, the authorities concerned have found that the importer ICI Pakistan was availing undue advantage of SRO1125(I)/2011 in clearance of the consignments of chemical namely WANNATE 8019,” sources revealed. They further disclosed that the importer processed goods declaration (GD) under PCT Heading 3909.5000 which was not appropriate in the clearance. A representative of ICI Pakistan had written a letter to Appraisement-West Collector Muhammad Saleem in which he appealed to the collector to re-asses the cleared consignments and send those samples for laboratory test. Considering the request of the
aggrieved party, the collector ordered the authorities concerned to send the samples of cleared goods for laboratory test. Subsequently, the test report of HEJ Laboratory endorsed the viewpoint of customs authorities and found that the cleared consignments fell under declared PCT Heading 3909.5000. Afterwards, the AIB/R&D authorities concerned decided to issue short recovery demand notices worth Rs 10 million to ICI Pakistan. The AIB/R&D of the Appraisement-West) in a short span of time has taken up several cases against importers for their allegedly taking undue advantages of SRO1125(I)/2011, SRO-551(I)/2008 and SRO-421(I)/2007.
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SPECIALREPORT
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— Exclusive Customs Today photos
FBR CHIEF LAUDS PERFORMANCE OF ANTI-SMUGGLING ORGANISATION OF GWADAR COLLECTORATE IN ITS RECENT OPERATIONS
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ederal Board of Revenue Chairman Tariq Bajwa and Member (Customs) Nisar Muhammad Ali Khan asked Enforcement-South Chief Collector Muhammad Nazim Saleem to evolve an effective strategy to eliminate smuggling of Iranian oil and diesel in the country. They said during their visit to the Customs House Karachi. The FBR highups arrived at Customs House, Karachi at around 9.30am and held long hour meetings at the Chairman’s Secretariat with the of>icers concerned of the Pakistan Customs. The meeting was attended by the Chief Collector-Appraisement (South) Nasir Masroor Ahmed, Chief CollectorEnforcement (South) Muhammad Nazim Saleem, Collector-MCC Appraisement (West) Muhammad Saleem, CollectorMCC Appraisement (East) Najeeb-urRehman Abbasi, Collector-MCC Preventive Syed Muhammad Tariq Huda, Gwadar MCC Collector Syed Tanvir Ahmed, Director-Directorate of Reforms and Automation Majid Yousfani, Director General of the Directorate of Transit Trade Khawar Farid Maneka, Director Transit Trade Ibrahim Vighio, Director Input-Output Co-ef>icient Organization (IOCO) Shahnaz Maqbool. The collectors of MCC-Quetta and MCC-Peshawar were also present on the occasion.
www.customstoday.com
SOHAIL RAB KHAN
KARACHI
The agenda of the meeting chaired by Tariq Bajwa was to achieve revenue targets at regular interval and explore means of revenue generation by curbing tax evasion and under-invoicing, improving performance of anti-smuggling organization (ASO) countrywide and to take initiative in order to conduct regular strategic training to the Customs’ of>icers. During the meeting, the FBR chairman stressed upon uprooting the smuggling activities and asked Chief Collector Enforcement-South Muhammad Nazim Saleem to evolve an effective strategy in order to eliminate smuggling of Iranian oil and diesel in the country. On the occasion, the FBR chairman directed MCC Gwadar Collector Syed Tanvir Ahmed to utilise all available resources in order to restrict smuggling of Iranian diesel and patrol in the jurisdiction of the collectorate. However, the FBR chief lauded the performance of Anti-Smuggling Organisation (ASO) of Gwadar Collectorate in its recent operations at Khurkherra check-post in which the collectorate seized around Rs 100 million smuggled items, including Iranian diesel and petrol. Tariq Bajwa also urged the collectorates to implement effective strategy in order to maintain the pace of the revenue collection in order to achieve desirable results by getting targets. He also asked the of>icers concerned of Pakistan Customs to keep a vigilant eye on malpractice, including under-invoicing and misdeclaration by taking undue advantage of SROs. The FBR chairman visited MCC-Port Muhammad Bin Qasim on 24 November and held meetings with the of>icers of the collectorate. The sources informed Customs Today that the monthly visits of Bajwa and Muhammad Ali Khan have clearly showed the willingness of the FBR high authorities towards the revenue generation. Meanwhile, Enforcement-South Chief Collector Muhammad Nazim Saleem on Wednesday called on Sindh Rangers Director General Major Gen Bilal Akbar in the Rangers Headquarters. During the meeting, both the top of>icers discussed matters pertaining to the security arrangements at the checkposts setup in Sindh. Nazim Saleem briefed Bilal Akbar about the deployment of customs of>icials at different check posts in Sindh. During the meeting, both the of>icers agreed upon to deploy adequate law enforcing agencies personnel at all checkposts in Sindh in order to curb the menace of smuggling. The chief collector informed about the effective measures taken by the collectorate in order to restrict the Iranian oil/diesel smuggling in the region.
f visits o y l h t n an Mo and Kh Bajwa how s clearly ess of FBR n g willin thorities high au ds revenue towar tion genera
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SPECIALREPORT 07
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08 EDITORIAL
DECEMBER O2 - DECEMBER O8, 2014
Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-300-4009261 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
EDITORIAL
wooing overseas Pakistanis for investment ccording to newspaper reports, Prime Minister Nawaz Sharif has said that overseas Pakistanis are the asset of the nation and the government gives great importance to their role in the country’s development. There are millions of well-to-do Pakistanis who have settled in Europe, Americas and Gulf States and their hearts throb in the name of Pakistan. If the government ensures the protection of their life and property, they will not hesitate to invest their hard-earned money in Pakistan. On another note, French Envoy Martine Dorence has said that a French delegation will visit Pakistan in the beginning of the next year to assess trade and investment opportunities in Pakistan. In a meeting with Ijaz A Mumtaz, the president of the Lahore Chamber of Commerce and Industry, she said that the visit of the delegation is aimed to enhancing economic and trade relations between the two countries and will pave the way for launching various joint projects in Pakistan. She also says that large scale French companies are eager to invest in Pakistan while various companies are already working in the field of pharmaceutical, chemicals, telecommunication, marketing, textile and food processing. She says that France wants to see a strong Pakistan and will extend its cooperation for the purpose. The LCCI chief said that the volume of trade between the two countries is less than $1 billion which needs to be enhanced. Meanwhile, Trade minister Khurram Dastgir Khan has met Hungarian envoy and invited him to invest in the field of agriculture, energy, information technology, housing, and alternative means of energy in Pakistan. He said that there is a capacity in all the sectors of the Pakistani economy for the foreign investors to launch profitable businesses. It is a good omen that the government is trying its best to attract foreign investment to improve the lot of the nation. There can be two opinions on the ability and capacity of the government to deal with economic crisis, but its sincerity cannot be challenged. The government has recently signed agreements with Chinese government for a large-scale investment in Pakistan and it is hoped that a new era of economic development will dawn on the Pakistani nation.
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Overseas Pakistanis are crown of nation LAHORE
DR AFTAb AFZAL
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www.customstoday.com
ccording to newspaper reports, Prime Minister Nawaz Sharif has said that overseas Pakistanis are the asset of the nation and the government gives great importance to their role in the country’s development. There are millions of well-to-do Pakistanis who have settled in Europe, Americas and Gulf States and their hearts throb in the name of Pakistan. If the government ensures the protection of their life and property, they will not hesitate to invest their hardearned money in Pakistan. On another note, French Envoy Martine Dorence has said that a French delegation will visit Pakistan in
the beginning of the next year to assess trade and investment opportunities in Pakistan. In a meeting with Ijaz A Mumtaz, the president of the Lahore Chamber of Commerce and Industry, she said that the visit of the delegation is aimed to enhancing economic and trade relations between the two countries and will pave the way for launching various joint projects in Pakistan. She also says that large scale French companies are eager to invest in Pakistan while various companies are already working in the Mield of pharmaceutical, chemicals, telecommunication, marketing, textile and food processing. She says that France wants to see a strong Pakistan and will extend its cooperation for the purpose. The LCCI chief said that the volume of trade between the two countries is less than $1 billion which needs to be enhanced.
LCCI chief says volume of trade between France and Pakistan is less than $1 billion
Meanwhile, Trade minister Khurram Dastgir Khan has met Hungarian envoy and invited him to invest in the Mield of agriculture, energy, information technology, housing, and alternative means of energy in Pakistan. He said that there is a capacity in all the sectors of the Pakistani economy for the foreign investors to launch profitable businesses. It is a good omen that the government is trying its best to attract foreign investment to improve the lot of the nation. There can be two opinions on the ability and capacity of the government to deal with economic crisis, but its sincerity cannot be challenged. The government has recently signed agreements with Chinese government for a large-scale investment in Pakistan and it is hoped that a new era of economic development will dawn on the Pakistani nation.
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NATIONAL 09
DECEMBER O2 - DECEMBER O8, 2014
FbR delegation attends seminar in Seoul
ISLAMABAD: A two- member delegation of the FBR is representing Pakistan at a week- long seminar on Price Valuation and Assessment in South Korean capital Seoul. A source said the World Bank, Korean Tax Administration, the Organization for Economic Cooperation and Development are organisers of the seminar. He said the delegation consists of Grade-21 officials, Chief Income Tax Policy Malik Amjad Zubari Tiwana and Commissioner Regional Taxpayers Peshawar Mir Badshah Khan.
Processing of Afghan Transit goods automated thru webOC
3 Customs inspectors move IHC against demotion orders by Collector Zeba
A duly verified copy of Jawaznama by Afghan Consulate is a must for processing of Afghan Transit Trade goods declaration KARACHI
SYED MUHAMMAD ASLAM
Collector Zeba Hai odel Customs Collectorate Collector Zeba Hai has demoted 13 customs inspectors who had been promoted by former collector Imtiaz. The customs inspectors have filed a petition in the Islamabad High Court (IHC) against Collector Zeba’s decision. The court is going to hear the petition on December 9. Justice Noorul Haq N Qureshi will hear the suit. The customs inspectors are of the view that the former collector had promoted them on the recommendations of field formations. As the department did not hold any examination for promotions since 1996 so the collector sought recommendations from field formations and as a result following seniors were promoted. The petitioners include Tariq Izhar, Ghulam Mustafa, Amir Abbas, Shahid Nawaz, Amjad Hussain, Hanif Ahmad, Mushtaq Ahmad, Mohsin Gilani, Tassawur Hussain Naqvi, Raja Mushtaq, Maqsood, Sultan Zaib and Azhar Abbas.
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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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fghan traders and importers are no more required to submit a copy of Jawaznama duly veriMied by Afghan Consulate for processing of Goods Declarations because the required particulars of Jawaznama are being directly fed in the WeBOC system by the Afghan Ministry of Commerce. Jawaznama is a license issued by Ministry of Commerce of Afghanistan to its nationals for trade of goods to and from the country. A duly veriMied copy of Jawaznama by Afghan Consulate is a must for processing of Afghan Transit Trade goods declaration. According to an ofMice order issued by the Directorate of Transit Trade, the processing of the Afghan Transit goods has been automated and the Afghan Ministry of Commerce has been provided access to the WeBOC automated system of the Pakistan Customs for the veriMication of Jawaznama and issuance of user IDs to Afghan nationals for trade of goods to and from Afghanistan. The ofMice order further said that the requisite WeBOC software has been implemented successfully and it has been provided to Afghan
— Exclusive Customs Today photo
— Exclusive Customs Today photo
www.customstoday.com
Collector Mukarram Jah
The Afghan Ministry of Commerce has started issuing user IDs after issuance of Jawaznama.
Focal Person nominated by Afghanistan’s Ministry of Commerce. The Afghan Ministry of Commerce has started issuing user IDs after issuance of Jawaznama.
Appeal to fix non-operational lifts at Customs House To,
The Collector, Model Customs Collectorate-Preventive, Custom House, Karachi Respected Sir,
We would like to draw your kind attention to a prevailing issue that needs to be redressed at war-footing basis. Sir, two out of three visitor lifts have been non-operational for a long time which creates problems to the importers, clearing agents and visitors who come to the Custom House daily. The visitors are forced to wait in long queues, as only one lift for visitors is functional which not only wastes their precious time, but also mentally agonise them.
Sir, you have done a lot for maintaining tremendous atmosphere in
— Exclusive Customs Today photo
the Custom House at par of any Custom House in the International
World. Displaying of historical pictures of Custom House, Karachi from the reign of Royal Majesty till today at the entrance and alley of ofMicers’ lifts and newly inaugurated Souvenir Shop on the premises of Customs House have really increased the prestige and honour of the Customs Department and also gave a unique touch to the visitors. But, on the other hand, the nonoperational visitor lifts put an unpleasant sight for the visitors, as only one lift is not enough for hundreds of visitors who visit Customs House on a daily basis. Sir, we hope that you will take the matter into consideration and issue immediate directives in this regard for the convenience of the visitors. Thanks & regards, Visitors of Customs House
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10 NATIONAL
DECEMBER O2 - DECEMBER O8, 2014
FbR to impose Rs 20,000 fine on non-filers after Dec 5
LAHORE: The Federal Board of Revenue (FBR) has decided to put Rs 20,000 penalty on non-filers of tax returns after December 5 deadline. It is important to mention here that Federal Board of Revenue extended the date for filing the income tax returns until December 5 by giving the more time to taxpayers. According to available detail, there are almost 3.7 million registered taxpayers in the country and 0.4 million taxpayers have filed their returns and still many taxpayers have yet to submit returns.
IC3 envisages joint scanning and screening of US-bound cargo via video link Program involves examination of US-bound containers through two-fold screening and imaging process LAHORE
AGHA SAEED AHMED www.customstoday.com
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he Integrated Cargo Container Control (IC3) Programme envisages joint screening and scanning of USbound containerized cargo from Pakistan for any radioactive material or contraband item via live video link by customs authorities of Pakistan and the US on real time basis. Subsequent to terrorist attacks of September 11, the US authorities proposed its trading partners to comply with the Container Security Initiative (CSI) and Mega Port Initiative (MPI) for its internal security needs. Accordingly, all customs administrations were obliged to forge ever closer links, in terms of operational synchronization and information-sharing, to ensure that it is only the genuine commercial cargo which moves through Customs border controls with utmost speed and facilitation, and that nothing is permitted to disrupt the international supply chain security in that process. IC3 is based on strategic partnership between Pakistan Customs and the United States Customs & Border Protection (USCPB) under the Secure Freight Initiative (SFI). The SFI project was started in the wake of the agreement signed between the two countries on the visit of President Bush in Pakistan in March 2006. Under this agreement the government of Pakistan would safeguard its exports’ interests to US markets by ensuring the security arrangements of cargo containers at Pakistani ports.
SFI is the advanced version of the CSI, where both scanners and the Radio Portal Monitors for examining the radioactivity are allowed to perform together under an integrated operations conducted by two administrations together. The goal of the Secure Freight Initiative is to establish an integrated inspection system with international allies to secure the global supply chain and eliminate the possibility of terrorist exploitation. Port Qasim has the honor to be the Mirst global SFI port in the world. The partnership between the two countries is based on shared concerns and mutually recognized roles and responsibilities in protecting and facilitating trade between Pakistan and US. It is a 50-50 partnership wherein funds for land acquisition and construction of the IC3 facility and infrastructure were provided by the Government of Pakistan. While X-
ray scanners, Radio Portal Monitors (RPMs), communication system and other equipments along with technical assistance to Pakistan Customs ofMicers were provided by US. The IC3 facility is constructed on 10 acres of land, obtained from Port Qasim Authority. These 10 acres are almost equally divided into two Blocks, National Block and the Operations Block. National Block consists of a multi-agency operations building where seating arrangement for IC3 Management, exports staff, clearing agents and Bank cashier has been made, ramp for examination of non PaCCS cargo and the holding area for temporary stay of cargo till the time the vessel arrives. IC3 Operations Block, comprises of two sets of RPM, NII (Non-Intrusive Inspection), examination Hall for detailed physical examination in case of an anomaly observed during the
scanning process and a targeting area to monitor the process & to establish liaison with NTC Washington. There are two counters inside the Targeting area, one for Pakistan Customs and other for Foreign Service Nationals (FSN). FSN are Pakistani nationals, appointed by the USCPB to represent them here at the SFI port with a view to facilitating the communication between Pakistan Customs and the USCPB. Purpose of the IC3 programme is to facilitate the Mlow of genuine US bound commercial cargo and to forestall clandestine movement of dangerous cargo, including radioactive or explosive substances through Radio Portal Monitors (RPMs) and Non Intrusive Inspection (NII) Scanner. The Programme envisages an integrated system whereby US bound cargo is jointly monitored by both Pakistan Customs and USCPB on real time basis
via live video link. The US Customs will not subject the screened cargo to re-examination on arrival at US ports provided manipulation is appeared to have been made with the seals. The program involves examination of the US-bound containers through a two-fold screening and imaging process. The system consists of an integrated inspection of containers by using X-ray scanners for Non-Intrusive Inspection (NII) and Radio Portal Monitors (RPMs). Screening is done through RPMs for any radioactive material found inside the cargo. RPMs receive the radiations of any magnitude and signal through alarm. Optical Characteristic Recognitions (OCRs) are attached to these RPMs for capturing pictures of the container No. from two angles and the same are transmitted to the targeting Area for recognizing & conMirming the container No. already received in the form of basic data from the entry-gate booth. The cargo is then subject to non intrusive scanning. The images so created are viewed by Pakistan Customs at Port Qasim and by US Customs at their Targeting Centre in Virginia on real time basis. Both the Customs Administrations can communicate with each other and exchange information during the course of viewing the scanned images. Upon completion of the process, CSI seals, consisting of Bolt seal and a Tamper Indication Sticker, are allotted and applied to the container that would enable the consignment to be ready to depart. Agha Saeed Ahmed is irst secretary (commercial) at Embassy of Pakistan, Kuwait
IslamabadCollectorateauctions25vehiclesforRs35million ISLAMABAD
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MUHAMMAD FAIZAN www.customstoday.com
he Model Customs Collectorate Islamabad earned Rs 35 million by auctioning 25 of 35 confiscated vehicles. Rest of the ten vehicles were not auctioned for low bids. They will be auctioned with other vehicles next month. Two Honda motorcycles were auctioned for Rs 33 and Rs 30,000. Imported cloth and Chinese cosmetics worth Rs 7.5 million were not auctioned as no one made a suitable bid.
The auction started at 11am at the Customs warehouse in Sector G-12 under Model Customs Collectorate Islamabad Assistant Collector Yawar Nawaz. The auction process was transparent. According to customs sources, rest of the 10 cars will be auctioned next month with vehicles handed over by other departments. The branded Chinese cosmetics were not auctioned as no one made a suitable bid. The department is pondering to sell the cosmetics in smaller quantities. Suggestion to setup shops to sell such goods or putting them on display at the state warehouse is also under consideration.
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CARTOONSSPECIAL 11
DECEMBER O2 - DECEMBER O8, 2014
ANF official says poppy cultivation increased by 7% in Afghanistan
ISLAMABAD: Poppy cultivation has increased by 7% in the current year than the previous year in Afghanistan which is a matter of grave concern for Pakistan, said a senior official of Anti-Narcotics Force (ANF). The official said that a majority of drug traffickers held abroad often produce Pakistani passports which also resulted in serious repercussions for Pakistanis at international fronts. “The total area under opium poppy cultivation in Afghanistan was estimated to be 224,000hectares (200,000-250,500) in 2014, which represents a 7% increase from 2013.
FbR to put defaulters’ names on ECL to recover Rs 159b tax
KARACHI
wAQAR ANSARI
www.customstoday.com
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he Federal Board of Revenue (FBR) will issue notices to the tax defaulters for the
collection of Rs 159 billion. Their names will be sent to the State Bank of Pakistan, NADRA
FbR issues notices to 28 tax evader restaurants
and NAB in the running week to put them on Exit Control List (ECL). The board has also decided
to block the computerised national identity cards of tax defaulters.
FBR’s RTO-I recovers Rs 29m from bank accounts of 2 companies he Federal Board of Revenue (FBR) Regional Tax Office-1, Zone II recovered 29 million by attaching bank accounts of two companies. As per details, RTO-I regional tax office recovered Rs 4.2 million by attaching bank accounts of Info Tech Company PVT. Official sources said that the account of the company was attached at Askari Bank Limited Branch Gulberg against long standing arrears. They added that the RTO has issued notices to the company but it did not paid heed to it. Finally the authorities ordered to recover the amount by attaching the company’s accounts. The RTO-I, zone II also attached four bank accounts of RYK Sugar Mills and recovered Rs 24 million against the current year demand. The sources said that after determining the demand for the current year, the company was informed through the notices but it did not comply with which led the Inland Revenue authorities to recover the tax amount by attaching the company’s account’s at Bank of Punjab Main Branch, National Bank Main Branch, Standard Chartered Bank The Mall Branch and MCB Bank Gulberg branch. The sources added that the accounts were attached on instructions of FBR assistant commissioners Umer Zeb Khan and Khuram Fakhar. It is pertinent to mention here the FBR authorities under Sales Tax Ordinance Section 48 have the authority to attach the bank account of the companies for evading sales taxes. —CT Report
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Customs seizes Rs 5.5m goods
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KARACHI
CUSTOMS TODAY REPORT www.customstoday.com
he Federal Board of Revenue (FBR) has decided to issue notices to tax evader restau-
rants and companies of Karachi. The formation of lists of tax defaulters is in the last phase. However, 28 tax evader restaurants have been served notices on the basis of prepared lists. “All restaurants of Karachi are
not tax defaulters but most of them from the Clifton did not pay tax.” Meanwhile, the Excise and Taxation Department has started crackdown on non-registered and token tax defaulter vehicles.
irectorate of Customs Investigation and Intelligence (preventive) has seized Rs 5.5 million illegal goods in seven raids involving duty and taxes worth Rs 3.3 million and arrested two accused. According to details, the directorate impounded cosmetics and miscellaneous goods worth Rs 1 million from a truck (LHO-9090).The anti-smuggling team seized 2,418 wind screens worth Rs 1.35 million involving duty taxes worth Rs 959,606. Similarly, the team seized Indian-origin tyres and nylon worth Rs 225,000, including duty taxes evasion of Rs 130,597. In another raid, the directorate confiscated illegal cloth worth Rs 1.08 million, involving duty taxes worth Rs 507,007.The wing also impounded Iranian tiles alongwith a mini truck (LSE-1187).The truck was loaded with 650 cartons of tiles worth Rs 520,000, involving duty taxes Rs 334,700. —CT Report
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12
DECEMBER O2 - DECEMBER O8, 2014
FbR urges lawmakers to file tax returns by Dec 5
ISLAMABAD: Federal Board of Revenue (FBR) is also struggling to collect taxes from the parliamentarians to achieve revenue collection target of Rs2,810 billion for 2014-15. Sources said that the FBR authorities have written letters to the Chairman Senate, Speaker National Assembly and Speakers of all four provincial assemblies, asking them to ensure filing of income tax returns by the parliamentarians till the December 5 deadline.
Gold smuggling case: Customs to ascertain validity of E-Forms in Rs300b revenue loss Report says Rs 60 billion foreign exchange could not be brought into country due to gold smuggling through submission of fake E-forms
KARACHI
SOHAIL RAb kHAN www.customstoday.com
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idening the ambit of probe in gold smuggling case, the Directorate General of Internal Audit-Customs has decided to send notices to private banks to confirm the number of fake E-forms issued, it is learnt here.
Sources informed Customs Today that the authorities concerned have started to scrutinise not only the export data of gold, but also started to check the import data against the export of gold. The Directorate General of Internal Audit (Customs) has also decided to send notices to private and government banks, including National Bank of Pakistan (NBP) and Muslim Commercial Bank (MCB) to ascertain the number of fake E-Forms which have been used in the gold smug-
gling. “The quantum of revenue loss to the national exchequer in the gold smuggling scam is to be expected around Rs 250 billion to Rs 300 billion and the case has got a significant importance beyond the imagination of analysts,” sources revealed. The Directorate General of Internal Audit-Customs has submitted its preliminary report before Federal Board of Revenue (FBR) Chairman Tariq Bajwa. In the report it is said that Rs 60 billion worth foreign ex-
FbR thinks FwO is not entitled to IT exemption, but govt is pressing the board to keep FwO out of taxes
change could not be brought into the country due to gold smuggling through submission of fake E-forms. The report also revealed that the phenomena of gold smuggling on fake E-Forms was not only observed in the collectorates of Karachi, but was also witnessed in the collectorates of Rawalpindi, Lahore, Peshawar and Air Freight Unit. The Federal Investigation Agency (FIA) has already taken up the gold smuggling case and arrested several gold exporters.
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ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
eaving other competitors far behind the front runner Customs OfMicer Rubina Athar has joined the Commerce Ministry as additional secretary to bridge the gap emerged following transfer of Additional Secretary Fazal Abbas Maken. In August 2014, the Federal Board of Revenue (FBR) had transferred Rubina Athar (Pakistan Customs Service/BS-21) from the Directorate General IPR Enforcement and Research (Customs), Islamabad and posted as the director
general of the Directorate General of Customs Valuation, Karachi. A source told Customs Today that Abbas Maken had been taking care of the ministry affairs pertaining to local and international trade as well as focal person and had also represented the ministry on numerous international platforms and played a key role in the execution and Minalisation of terms of references of trade agreements with friendly countries. “The Commerce Ministry, in the wake of ongoing developments and seriousness of challenges confronted by Pakistan on both the foreign and domestic trade, was looking for some competent and
— Exclusive Customs Today photo
Rubina Athar joins Commerce Ministry as additional secretary experienced ofMicer for the said post,” the source observed. He said that the slot of additional secretary was of a technical nature because the holder of the post had to hold lengthy discussions and debates and go through trade treaties along with hectic ofMicial work, therefore, the ministry was looking for some hardworking self-motivated ofMicer to carry forward the agenda of increasing exports as well as searching for new markets in the world for Pakistani products. “However, having immense experience, Rubina Athar is being considered as the most appropriate one for the said post because she
had served the ministry as joint secretary as well as she had a lot of knowledge about the upcoming challenges,” the source said, adding that her customs-related expertise would beneMit the country in discussion related to trade tariffs with other countries because her ofMice had been delegated responsibility of taking care of both the foreign and domestic trade. Similarly, the source said that as she hailed from the Customs Group, therefore she would be able to handle the challenges related to establishment of Land Port Authority (LPA) followed by the land ports at borders with neighbouring countries.
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