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vol 1 Issue no. 42

Karachi, Tue Dec 03 - Mon Dec 09, 2013

Weekly

Regd. no, MC-1381

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hugebacklog

no RooM foR CoRRUpTIon

of containers at KICT despite directives of Dar, Michael FBR ChairmanTariq Bajwa warned high officials to clear the Department of corrupt elements to improve the performance | see pAGe 5 |

Waiving off demurrage and detention charges will reap no fruits for the business community as delay in containers clearance will further augment their difficulties LAHORE/KARACHI

RAhIl YAsIn/sohAIl RAb KhAn www.customstoday.com

heADInGInRIGhTDIReCTIon oods transporters in Karachi held prolonged strike a couple of weeks ago to get their grievances addressed by the federal government, provincial government, FBR and Ports authorities. During their 12-day long strike, economy suffered colossal loss of $24 billion. Importers and exporters faced tremendous difQiculties during the strike as their containers got stuck up at the ports.

PM Nawaz Sharif directed Finance Minister Ishaq Dar to urgently resolve the problems of business community.

The Minister visited the FBR House very next day and directed the high ofQicials to clear the backlog of containers at ports at the earliest. After this, Finance Minister Ishaq Dar and Ports and Shipping Minister Kamran Michael visited Karachi to listen goods transporters problems themselves.

They accepted demands of transporters and waived off demurrage and detention charges to compensate the business community. But after passage of several days, backlog of containers at Karachi International Containers Terminal (KICT) is not yet cleared, creating immense problems for importers.

There are a number of serious complaints that containers are not grounded for 10 days. Ports authorities give impression that customs ofQicials are not allowing them to ground the containers but DC Asad Larik at KICT alleged that terminal operators are delaying the grounding of containers as they are not providing space for it. If grounding is allowed, the examination takes several days, causing huge revenue losses to the exchequer.

After clear instructions from PM, Finance Minister, Ports and Shipping Minister and FBR Chairman Tariq Bajwa, the matter of containers clogging is not yet resolved. On the one hand, it is on top of government agenda to increase the revenues but on the other, the government seems least bothered to take up the issue on urgent basis. Waiving off demurrage and detention charges will reap no fruits

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Rapid Deployment Force has been formed to keep a strict vigilance and speed up antismuggling activities, says Chief CollectorYahya | see pAGe 3 |

fACIlITATInG InvesTMenT

Board of Investment has given three tax policy proposals to Federal Board of Revenue to grant tax benefits to foreign investors | see pAGe 4 |

sIGnInG of MoU

PIFFA and Bahria University signed an MoU for education cooperation leading to conduct FIATA Higher Diploma in Supply Chain Management | see pAGe 5 |

for the business community as delay in containers clearance will further augment their difQiculties. They could lose their back-to-back orders.

The importers are facing immense difQiculties in clearance of their goods’ containers at KICT, due to shortage of Customs ofQicials in assessment and examination departments.

During the survey, it has been observed that grounding of containers is being delayed up to 10 days, creating huge backlog as DC at KICT did not bother to implement the directives of the Finance Minister in letter and spirit.

DC Customs further aggravated the situation through slow examination of containers. The sources informed the Customs Today that the importers have to pay hundreds of millions of rupees in detention charges due to this mess-up.

The proprietor of Jamal Logistics & Enterprise informed this scribe that the assessment at KICT is being delayed for three to four days, while the examination is not being conducted on time, causing loss to importers. “Terminal staff is facing lack of space due to shortage of Customs ofQicials”, he added.

According to KICT authorities, around 400 containers are being grounded daily at the terminal and only 100 to 115 containers are being cleared.

While talking to Customs Today, DC Asad Larik at KICT said that it is not cus-

According to KICT authorities, around

400 containers are being grounded daily at the terminal and only

100-115 containers are being cleared.

toms ofQicials fault but terminal operators are delaying the grounding. He said they have cleared the backlog till November 24.

KCCI President Abdullah Zaki while talking to Customs Today on this issue said that demurrage and detention charges were waived off but the decision was not implemented in its true spirit. He urged the customs ofQicials and terminal operators to clear the containers as soon as possible to save the economy from further losses. Sources from Ports and Shipping Ministry told Customs Today the Ministry had waived off all demurrage charges after consultations with business community.

Sources from Ministry of Finance told Customs Today that after the directives of the Minister authorities concerned are striving to clear the backlog to facilitate the business community.

One of CEO of the terminals while talking to Customs Today said that the Customs OfQicer at KICT aggravated the situation by increasing volume as KICT has no space for grounding more containers. But he assured that the backlog of containers would be cleared within few days.

Customs OfQicer and Ports authorities are putting blames on each other but are not seriously trying to resolve the issue on war footing as it is the economy which suffers at last.

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NATIONAL

DECEMBER 03 - DECEMBER 09, 2013

Automakers urge govt to withdraw sRo 577

KARACHI: Automakers have urged the government to withdraw SRO 577 which is giving undue advantage to the used car traders in duty and taxes, resulting into significant revenue loss to the government. In a joint statement, Abdul Waheed, Director General of Pakistan Automotive Manufacturers Association, and Usman Malik, chairman of Pakistan Association of Automotive Parts Accessories Manufacturers said that importers forge documents to import used cars, evade taxes, and sell old cars at prices equal to locally produced new cars to customers.

FBR on track to achieve its set target: Ishaq Dar

bajwa urges officers to improve skills LAHORE

M hAYAT

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C ederal Minister for Finance Ishaq Dar has reiterated his commitment to achieve FBR’s annual tax collection target of Rs 2,475 billion saying,“In view of fiscal framework, it is imperative that Federal Board of Revenue (FBR) achieves its desired target of Rs2,475 billion, otherwise development spending will become victim in case of slippages on account of revenues”. No further room has been left to cut down the non-development expenditures of the Prime Minister House, as well as all other ministries, he said.“We have directed the FBR to gear up efforts for achieving the desired tax collection target and with the grace of God, FBR’s revenue collection has so far been on track”, he added. He said that he has also directed the FBR to find ways and means for facilitating taxpayers.The Finance minister told that FBR has initiated the second round of sending notices in a bid to expand the tax base.“Broadening the tax base exercise will continue in the years to come,” he added. —CT Report

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No concession to randomly selected cases for audit ederal Board of Revenue will not grant any relief, special concession or relaxation to the cases selected for audit through random computer balloting forTaxYear 2012.

Sources said that the registered persons, selected for audit, should cooperate with tax officers for completion of their audit in a routine manner.

FBR has no intention to give any kind of relief to cases selected for audit through random computer ballot, sources said. Some experts presumed that FBR might announce some relief to the cases selected for audit. However, officials clarified that routine process would be adopted for completion of their audit and assessment.

FBR had selected a total of 41,727 cases for audit without applying any parameters through random computer balloting.The Board had conducted computer ballot for selection of Income Tax, SalesTax and Federal Excise Returns cases for audit. —CT Report

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hairman of Federal Board of Revenue (FBR) Tariq Bajwa has stressed upon the need for improving training skills of ofQicers for broadening of tax base and revenue generation.

He was addressing Qinal passing out ceremony of 40th Specialized Training Program as Chief Guest at Directorate General of Training & Research of Inland Revenue [DGTR (IR)].

He emphasized upon the ofQicers the importance of utilization of their expertise for strengthening the economy by increasing the revenue generation.

The Chairman FBR appreciated the training activities at DGTR(IR)

— Exclusive Customs Today photo

and reiterated the need for further improving the training skills to target broadening of tax base and rev-

enue generation. He advised the new entrants, about to join the Qield formations, to work hard with zeal,

nICl case

ApexcourtorderstobookFTO,NABchairman ISLAMABAD

CUsToMs ToDAY RepoRT www.customstoday.com

upreme Court of Pakistan has ordered to register case against FederalTax Ombudsman (FTO) Abdul Rauf Chaudhry and National Accountability Bureau (NAB) Chairman Qamar Zaman Chaudhry for creating hurdles in probe into the NICL case.

A three-judge bench headed by Chief Justice Iftikhar Muhammad Chaudhry concluded the hearing of the case last week and had saved the verdict in National Insurance Company Limited (NICL) corruption case.

Today, the court made the decision public and ordered to register cases against the said officials who have tried to stifle the investigation process of the corruption case.

The order also declared the appointment of former NICL chairman Ayaz Khan Niazi illegal, and instructed the authorities concerned to initiate

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Qamar Zaman Chaudhry and Abdul Rauf Chaudhry were facing contempt charges in the nICl case wherein it was alleged that they created hurdles in the smooth investigation of one of the biggest financial scams in pakistan

proceedings against former minister Makhdoom Amin Fahim and Nargis Sethi also.

Qamar Zaman Chaudhry and Abdul Rauf Chaudhry were facing contempt charges in the NICL case wherein it was alleged that they created hurdles in the smooth investigation of one of the biggest financial scams in Pakistan.

However, the accused officials had denied all charges against them. Sources close to Abdul Rauf Chaudhry said that he was an honest officer and had a spotless career while a recent press release from Qamar Zaman Chaudhry also denied all charges against him and maintained that he acted upon SC judgments. The PML-N government first appointed Abdul Rauf Chaudhry as FTO and later appointed him as chairman of the commission for top appointments. Qamar was made chairman NAB after an agreement between the PM and the leader of the opposition. Since he was considered close to both so the appointment was criticised by all and sundry.

pak-Indiacustomsbrokerstoformassociation LAHORE

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meeting of Customs Brokers of both sides of India and Pakistan was held at Zero-line of Attari-Wagha Border to create Attari Wagha Association of Customs Brokers (AWAC) in order to facilitate trade.

ShaQiq-ur-Rehman, Deputy Collector of Customs, LFU, Wagha; Agha Iftikhar Ahmed, President Lahore Customs Agents Association; Irfan Masood, Proprietor, Customs Clearing and forwarding Agents, Lahore and Mohammad Mushtaq, Proprietor, Customs Clearing and forwarding Agents, Lahore participated from Pakistan side in the meeting.

From Indian side, Amanjit Singh, Assistant Commissioner of Customs, ICP Attari; Rameshwar, Manager,

— Exclusive Customs Today photo

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Central Warehousing Corporation, ICP Attari; Vijay Sehra, Superintendent Customs, ICP Attari; Kuldip Rai, Superintendent Customs, ICP Attari; Rajesh Garg, Inspector Customs, ICP Attari; Shamsher Singh, Inspector Customs, ICP Attari; Dalip Singh, M/s International Clearing Agency and

Jaspal Singh, M/s Avatar Singh & Co were also present there.

Customs Brokers of both the countries nominated Muhammad Amjad Ch from Pakistan as President of the Attari Wagha Association of Customs Brokers. Dalip Singh from India has been nominated as VicePresident of the Association, while Jaspal Singh and Agha Iftikhar Ahmed from India and Pakistan respectively have been nominated as General Secretary of the Association.

Pradeep Sehgal and Irfan Masood (UrQi) from India and Pakistan respectively have been nominated as Joint Secretary of the Association, while Harpreet Singh and Mirza Asam Baig from India and Pakistan respectively have been Information Secretary of the Association.

It was decided that the meeting of AWAC will be held in the Qirst week of December 2013 in Amritsar.

vigor and devotion and prove themselves as good tax administrators in the back drop of national and global challenges.

The Chairman, FBR congratulated the ofQicers of 40th Specialized Training Program on their successful completion of training and wished them success in their careers. He also thanked the Director General Ms. Sameera Yasin for inviting him upon such an auspicious occasion.

In the end certiQicates were awarded to successful ofQicers and shields presented to position holders.

Earlier Ms. Sameera Yasin, Director General, DGTR (IR), welcomed the Chairman, FBR. In her address, the DG highlighted the training needs, its efQicacy and impact on both structural and practical terms being catered by DGTR (IR) for the ofQicers and ofQicials of Inland Revenue. In the end, Sheraz Mirza, Director (IR) extended his gratitude.

fbR to extend assistance to provinces ederal Board of Revenue (FBR) has assured provinces of full assistance towards strengthening provincial revenue authorities through introduction of tax reforms including drafting of tax laws/regulations for tax enforcement and increasing sales tax collection from services' sector, sources said.

Sources say that the issue of FBR's coordination with provinces in fiscal matters was discussed during the last meeting of the provincial finance secretaries on ‘Creation and Appropriate Use of Additional Fiscal Space by provinces’. The tax authorities assured that the FBR is ready to facilitate all four provinces to increase their revenue collection mechanism. As services is provincial subject, FBR will assist provinces by helping them in drafting effective rules and regulations for implementation at the provincial level for expanding the tax base with increased revenue collections, sources said. According to sources, tax authorities gave valuable suggestions for improving the general sales tax (GST) collection and assured full co-operation to strengthen provincial revenue authorities in terms of framing appropriate tax laws/regulations, further refinement of definition of tax bases, risk based audits, tax enforcement and sharing of data. FBR's officials have assured the provinces of full co-operation in improving GST on services. On the issue of increasing revenue from the traditional provincial taxes (UIPT, AIT, Stamp duties, MVT, etc), FBR authorities underscored the importance of proper valuation of properties as per prevailing market rates which could provide the provincial governments a sizeable and predictable revenue stream.The meeting decided that provinces will provide one-page briefs to Finance Division on proposed reforms for increasing revenues from GST and traditional sources. —CT Report

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KARACHI

DECEMBER 03 - DECEMBER 09, 2013

03

fbR special cell to get info of accounts in switzerland

KARACHI: Federal Board of Revenue is planning to exercise powers under Article 25(1) of the Avoidance of Double Taxation Treaty (ADTT) to get information of Pakistanis maintaining accounts in Switzerland, it is learnt. The sources said that the board was presently considering establishing a special cell in Karachi to invoke the provision of Article 25(1) by seeking the information regarding the bank accounts maintained by Pakistanis in various banks of Switzerland.

operationagainstdrug smugglinglaunched KARACHI

PakistanCustomsseizessmuggled goodsworthRs205min24days:Yahya

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KARACHI

CUsToMs ToDAY RepoRT

nti Narcotics Force (ANF) has launched Operation‘Umeed-eNau’against drug trafficking activities. FC Brig Muhammad Abuzar said this while addressing a press conference here at ANF Regional Directorate, Karachi. He informed the media that ANF with the help of other law-enforcement agencies (LEAs) has conducted total 93 raids in which 57 have been conducted in Karachi.

“During the raids, the ANF have seized drugs including opium, heroin, hashish, cocaine synthetic drugs, poppy seeds and other lethal drugs and also arrested 53 accused”, he added. He further said that the operation aimed to reinforce ongoing provincial operation for establishing lasting peace in the city.

“Regional coordination has been made with other LEAs i.e.

Rangers, police, Pakistan Coast Guard (PCG), Maritime Security (MTS), FBR, MSA, ASF and port authorities”, Brig Abuzar said.

He further informed the media that the operations are being conducted in seven categories including cleanup operations, intelligence-based operations, joint operations with other LEAs, down country movement of drugs, mobile patrolling and joint checks posts, increase vigilance at seaports, airports and investigations have also been started under section 67, 68 and 69 of CNSA 1997 of drug smugglers with a view to stop the flow of narcotics into the city.

Replying to a question, Brig Muhammad Abuzar admitted that the ANF despite limited resources is striving hard towards the elimination of drugs with the coordinated efforts with other agencies.

“ANF will also have a plan to conduct operations against smugglers in Lyari, Sohrab Goth and Memon Goth”, he said.

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he economy of the country has borne a revenue loss of Rs20 billion due to smuggling of POL products. This was revealed by Chief Collector Enforcement (South) Muhammad Yahya while addressing a press conference at Customs House, Karachi.

Muhammad Yahya said that the Enforcement is heading in a right direction and a Rapid Deployment Force (RDF) has been formed through which the deployment of the ofQicials could be possible at RCD Highway, Superhighway and National Highway to keep a strict vigilance on passing containers.

“A meeting of the ofQicials concerned of all coordinated agencies is being held fortnightly with a view to review the performance of the continued operations, adding that two meetings have already been done in this regard,” he said.

Chief Collector Enforcement Muhammad Yahya informed the media that the Customs Enforcement (South Region) has seized smuggling goods including vehicles, diesel, cloth, blankets, Gutka, foreign currency, tyres and tubes, motor boat, poppy seeds etc worth Rs204.291million through anti-smuggling activities from Oct 31 to Nov 23, 2013.

BrieQing the media, Muhammad Yahya said that the anti-smuggling activities have been carried out by Quetta Collectorate, Gwadar Collectorate, Preventive Collectorate; Karachi and Hyderabad Collectorate.

Chief Collector Enforcement also highlighted the shortage of staff in Enforcement (South Region) and said that only 1,700 ofQicials are working in all the collectorates of South Region.

He urged the government that new recruitment should be conducted in Enforcement (South Region). “Pakistan Customs has

— Exclusive Customs Today photo

— Exclusive Customs Today photo

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indentiQied the mechanism through which the currency is being transferred illegally from the country, adding that initiative along with Pakistan Army has been taken to deploy sniffer dogs in order to identity the smuggled currency and goods”, he asserted. He further informed that the scanners have also been installed from Chaman to Torkhum borders to curb the smuggling.

“All these actions have been taken in the light of the directives issued by Supreme Court in its Constitutional Petition No.16 of 201, adding that all the agencies are being heading towards curbing of the smuggling of illegal arms/ammunition, narcotics and other contraband goods”, he concluded.

The Collector MCC Preventive S M Tariq Huda and Assistant Collector Wasif Malik were also present on the occasion.

Scanners have also been installed from Chaman to Torkhum borders to curb the smuggling, says Chief Collector Yahya

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04 NATIONAL

DECEMBER 03 - DECEMBER 09, 2013

sack kraft paper manufacturers seek increase in customs duty

ISLAMABAD: Local manufacturers of sack kraft paper have asked National Tariff Commission (NTC) to augment the customs duty on its import from 15% to 25% and impose Federal Excise Duty as well. They have pointed out the fact that low customs duty renders local producers uncompetitive along with massive under-invoicing of sack kraft paper. The manufacturers have demanded of Chairman FBR to look into the matter.

— Exclusive Customs Today photo

Govt to expand fishing business, exports: Michael

ederal Minister for Ports and Shipping Kamran Michael has said that the government is evolving a fresh fisheries policy with a clear view to augment export of the country's key seafood products especially tuna and shrimp species. Being the chief guest at a seminar on Promoting Rights Based Approaches for Fishermen, jointly organised byWWF-Pakistan and Marine Fisheries Department (MFD) at a hotel to markWorld Fisheries Day, he said that the government will include fishermen's views in exports related policies.

He said that the government is working to promote the fishermen community into the country's mainstream business affairs. He said that the government will ensure that the fishermen receive a better price for their catch on the local market. He added that the government plans to import fibre glass fishing vessels which will have general packet radio service (GPRS) facility and life protection tools to help the fishermen carry out deep-sea operations in all weathers without troubles. —CT Report

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— Exclusive Customs Today photo

boI gives three proposals to fbR

pM announces eye-catching tax incentive package for investors ISLAMABAD

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hrough money whitening scheme and different tax incentives, Prime Minister’s package for industrialists is aimed at promoting investment to the tune of $5 to $10 billion over the medium term.

It basically aimed at allowing informal economy coming into formal sectors of the economy. However, these incentives would not be available to certain sectors for investment purposes such as in arms & ammunition, explosives, fertilizers, sugar, cigarettes, aerated beverages, cement, textile spinning units, Qlour mills, vegetable, ghee and cooking oil manufacturers, as these sectors either already have excess capacity or are anti-social. Moreover, these incentives will not be applicable on funds arising from crimes committed under Narcotic Substances Act 1997, Anti Terrorist Act 1997 and Anti money Laundering Act 2010.

Senior ofQicials in FBR said that the sluggish economy required a jump-start push to increase investment to GDP ratio which witnessed lowest ebb of the country’s history during the last Qive years under PPP led dispensation. “After studying economic situation carefully, we reached the conclusion that this economy requires incentives to promote investment and it cannot be done without taking domestic investors into conQidence at Qirst stage,” they added.

The government decided to shift the focus towards promoting indus-

ImportersconcernedoverissuanceofVRsonhighvalue KARACHI www.customstoday.com

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gory of Companies (CEOs), Association of Persons (main shareholders), salaried individuals and non-salaried individuals will be issued Taxpayer’s Privilege Card.

The holders of these cards will be entitled to use at VIP Lounge at airports; fast track clearance at immigration counters; issuance of gratis passport; and increase in baggage allowance from $500 to $2,500.

Excellence Awards shall be given to top ten taxpayers in each category and they shall be invited to annual dinner with the Prime Minister at Excellence Award Ceremonies.

With the aim of enhancing income tax collection and simultaneously facilitating the existing taxpayers by providing an option to the taxpayers

19 valuation rulings issued in november

CUsToMs ToDAY RepoRT

ederal Board of Revenue has received three tax policy proposals from the Board of Investment (BoI) for fixation of an investment threshold to grant tax holidays to foreign investors, reduction in corporate income tax rate and cut in the standard rate of 17 percent sales tax, sources said.

Sources said that BoI had requested its Executive Committee Members to submit the proposals for investment promotion and facilitation of the foreign companies.

The Executive Committee Members of the BoI have submitted three tax policy proposals. The first one suggests reduction in the income tax rates as compared to rates of other developing countries. It aims at bringing down the cost of doing business. —CT Report

trial growth. In order to promote investment in industrial sector the source of investment shall not be probed by the tax authorities in respect of persons, who set up an industrial undertaking/expansion project on or after the 1st day of January, 2014. The priority areas include Green Field Industrial Projects, captive power plants established under such projects, low cost housing construction, livestock, and mining and quarrying in Thar coal, Balochistan and Khyber Pakhtunkhwa. Expansion projects shall also be eligible under this scheme.

In order to promote tax culture and acknowledge leading taxpayers, the Prime Minister announced that top hundred taxpayers in each cate-

to avoid tax audit, the Prime Minister announced immunity from tax audit for those taxpayers who pay twenty Qive percent more tax for the tax year 2013 than the tax paid or assessed for the previous year.

To facilitate the taxpayers in availing this relaxation the PM announced extension in the date of Qiling of returns for the current tax year from 30th November to 15th December 2013.

Taxpayers who have already furnished their returns will be eligible to Qile revised returns to avail the facility.

With the intention to increase the number of return Qilers, increase tax collection and to reduce the gap between the NTN holders and the return Qilers, the Prime Minister announced an incentive to encourage NTN holders who have not Qiled income tax returns during last Qive years to Qile their returns by exempting them from penalty, additional tax and audit if they Qile their missing returns of the last Qive years.

However, immunity shall be available only if a minimum tax of twenty thousand rupees on the basis of taxable income has been paid.

In order to broaden the tax base, the Prime Minister announced immunity from audit, additional tax and penalty for those individuals who are not in the tax net. To avail this immunity tax on the basis of taxable income should be 25,000 rupees or more. Immunity from audit shall be available for tax years for which returns have been Qiled and for subsequent tax years equal to number of returns Qiled. Top ten taxpayers in this category will also be provided with Taxpayer’s Privilege Card and will also be entitled to the same privileges as mentioned above.

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he Directorate General of Customs Valuation has issued 16 Valuation Rulings from No. 595 to 609 of different items in 12 days under the Section 25-A of the Customs Act, 1969.

From October 31 to November 28, the Customs Valuation Department issued Valuation Rulings of BoPET/holographic and pet sequin Qilm (VR No.595), toiletries of lowend (VR No.596), disposable plastic articles including PP jelly cups (VR No.597), small cardamom (VR No.598), skimmed milk powder (VR No.599), lead acid batteries (VR No.600), Kraft liner board and unbleached sack Kraft paper (VR No.601), valves (VR No. 602), BoPP Qilm (VR No.603), almond in shell and almond shelled (VR No. 604), adapters (VR No.606), gas stoves and parts (VR No. 607), arms and ammunition (Pistols 9mm and 30 Bore)

VR No. 608, chemicals (VR No.609), headphones, ear phones and hands free for mobile phones (VR No.610), room air fresheners and car air fresheners (VR NO. 611) and aluminum and radiators (VR No. 612).

The Customs Valuation Department kept the following factors before issuing the Valuation Rulings: background of the valuation issue, method adopted to determine values and validity of valuation ruling.

However, the importers and Customs agents have expressed their concerns over the issuance of these Valuation Rulings.

They were of the view that the Customs Valuation Department always issued the Valuation Ruling of any commodity at high-end level.

Pakistan Economic Forum (PEF) Chairman Muhammad Arshad Jamal has termed the issuance of these Valuation Rulings as ‘fraud’ with the importers. Jamal said that the accurate standards are not being followed in Directorate General of Customs Valuation, adding that the department is

not working within its parameters.

“Appraisers are also misusing the Valuation Rulings for their vested interests, causing huge loss to national exchequer”, he added.

Commenting on the current scenario, Arshad Jamal said that the people who wanted to get their goods declared even did not have a facility to see the Valuation Rulings and Pakistan Customs Tariff (PCT) while Qiling their GDs. Citing the issuance of latest VR No.607 of gas stoves and its parts, Jamal said that the values of these products have been increased as compared to the previous prices.

“How could the value of any commodity be similar for all origins while the Customs Valuation Department issues the VRs of every product at uniform price for all origins?,” he questioned. One of the importers, Shahzad Imam, informed Customs Today that the Valuation Rulings are not even placed on the website of Federal Board of Revenue (FBR) and the importers and Customs agents

have to face difQiculties during Qiling of their GDs. “The menace of smuggling is being increased by issuance of Valuation Rulings on high rates”, he added. Saghir Ahmed, former Assistant Vice President Karachi Customs Agents Association (KCAA), alleged that the Valuation Rulings have been issued without proper market survey. “Work-back Method is being avoided while issuance of Valuation Rulings”, he added. He further said that the Customs ofQicials while issuing Valuation Rulings have Qixed the other expenses and the proQit of whole sellers and retailers at 10 per cent, which is unjustiQied for importers and traders.

Ahmed suggested that the Customs ofQicials should conduct and Qinalise the Valuation Rulings while keeping the lower cost of the products in their minds after conducting proper market survey. However, ofQicials concerned in Customs Valuation Department did not comment on the issue.

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KARACHI

DECEMBER 03 - DECEMBER 09, 2013

05

Customs houses to remain open on saturdays

ISLAMABAD: In order to facilitate the trade and industry in getting their cargo cleared for imports/exports and payment of duty and taxes, FBR has decided that all the Model Customs Collectorates shall remain open and observe normal working hours on Saturdays till further orders. Federal Board of Revenue has directed all the Chief Collectors to coordinate with management of State Bank and National Bank of Pakistan to provide banking facility by its designated branches on Saturdays to ensure collection of taxes and duties in this regard.

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rominent figures from Karachi’s business community including former President of Karachi Chamber of Commerce and Industry (KCCI), and former Chairman of Sindh Board of Investment (BoI) have suggested that all cargo coming under AfghanTransit Trade (ATT) should be dispatched to Afghanistan through freight trains.

Former Sindh BoI chairman Muhammad Zubair said that previously Pakistan Railways was pushed back to create room for National Logistics Cell (NLC). He pointed out that all over the world railways earn substantial earnings from cargo transport while in Pakistan this sector was totally ignored.

He stressed the need for improving railways by buying new locomotives and establishing double railway tracks which will automatically reduce the cost of running it.

He added that strong determination can bring it back on track.

Zubair was of the view that 12day-long transport strike wouldn’t have succeeded if railways was in good shape.

Business community sustained around Rs23 billion losses as a result of strike of goods transporters.

KARACHI

Customsadheringto policyofzero toleranceagainsttax evasion:Collector

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ederal Board of Revenue (FBR) Chairman Tariq Bajwa has warned the Customs ofQicials that there is ‘no room’ for the corrupt ofQicials in FBR. FBR Chairman said this while discussing different matters pertaining to revenue generation, target achievements and missing containers with the high ofQicials during the visit to Custom House, Karachi.

Tariq Bajwa asked the ofQicials concerned to take strict action against those who are involved in tax evasion through mis-declarations. He further directed the ofQicials to keep the merit only criteria in transfers/postings of the ofQicials.

akistan Customs is strictly following the directives of Federal Board of Revenue (FBR) and fully adhering to the policy of“zero tolerance against tax evasion”.

This was stated by Collector Model Customs Collectorate (MCC) Appraisement-West Muhammad Saleem while talking to Customs Today at his office in Customs House, Karachi.

Replying to a query, Collector MCCAppraisement (West), Karachi Muhammad Saleem said that transfer/posting orders issued by the

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Inappropriateprices:BidsforonlyRs3mgoodsreceived

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idders seemed less interested in the bidding of Customs seized goods and articles due to inappropriate prices of auction at Allama Iqbal International Airport.

The customs authorities could only receive bidding for goods worth Rs 3 million out of a total value of Rs 20 million. The bidders did not make any bid for 23 vehicles including models of Toyota Land Cruiser, Toyota Hilux, Toyota Nosha, Toyota Collar, Toyota

Mark X, Mitsubishi Pajero, Honda Civic, Mercedes Benz and Ford. Bidders said that the prices of the vehicles were inappropriate as compared to the condition of the vehicles which were not more than a scrap.

OfQicial sources on the other hand said that the anti-smuggling wing evaluated unrealistic prices of ordinary seized goods and articles in order to make impression that the wing was working hard in car-

rying out its task. The bidders said that the Customs authorities have put the same vehicles on auction for several times but did not revise the price. They lamented the indifferent attitude of the Customs authorities towards the gradual destruction of the valuables.

Only a few goods and articles worth Rs 3 million attracted attention of the bidders for which they took part in the auction. Sources said that the accepted bids were not Qinal as the liquidation will be made following approval of top authorities.

Bids for a limited quantity of seized goods and vehicles were accepted which included electric transformers, industrial boilers for textile mills, medical equipment, dental chairs and accessories, old and used scrap, AC plants, process water chillers, diesel generators and other impounded goods and articles. —CT Report

— Exclusive Customs Today photo

KARACHI

noroomforcorruptofficersinfbR:bajwa

— Exclusive Customs Today photo

Karachibusiness communitysuggests railwaytrackforATT

Chief Collector (South) Appraisement has been implemented in its true spirit and the officials in all three Collectorates have assumed their new posts. Answering to a question, Muhammad Saleem said that four appraising officers, who were‘involved’ in tax evasion in MCC-Appraisement (West) have been transferred to other collectorates, but before their transfer, the MCC-Appraisement (West) recovered the evaded customs duty from the importers. —CT Report

PIFFA, Bahria University sign MoU on educational cooperation KARACHI

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— Exclusive Customs Today photo

P

akistan International Freight Forwarders Association (PIFFA) signed an MoU with Bahria University for education cooperation leading to conduct FIATA Higher Diploma in Supply Chain Management at Bahria facilities. The Memorandum of Understanding was signed by Chairman PIFFA Abdul Majeed Paracha and Rector Bahria University, Vice Admiral (R) Shahid Iqbal HI (M) in a beQitting ceremony.

In his address, Chairman PIFFA expressed that the MoU with Bahria University will go a long way in meeting the professional needs of member companies and in particular grooming young professionals from the private sector for Supply Chain Management services. He noted that Freight Forwarding Industry will be the ultimate beneQiciary as the diploma holders will infuse new blood and energy to meet the challenges of international compet-

itiveness due to trade liberalization and globalization. It will also improve human resources, a key component in services that will directly and substantially affect our country’s global competitiveness.

Paracha spoke of Pakistan’s geographical location and its immense potential to become a strong hub for Qlow of transit cargo trafQic through Pakistan to neighboring countries, China, CIS States and beyond. Moreover, he said our own local import & export trade activities also offer lots of opportunities and create demand for freight forwarding and logistic services. At the end he thanked Bahria University and assured consideration for providing internship from PIFFA platform to new entrants leading to job opportunities.

Vice Admiral (R) Shahid Iqbal HI (M) welcomed PIFFA initiatives and assured complete support and assistance from Bahria University.

Referring to growing trade opportunities as enumerated by Chairman PIFFA, he noted with satisfaction the opportune timing of the mutual cooperation to commence and focus on demand-oriented studies for the youngsters.

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SPECIALREPORT

DECEMBER 03 - DECEMBER 09, 2013

— Exclusive Customs Today photos

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KARACHI

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t would be disastrous if fresh recruitments are not made in Model Customs Collectorate (MCC) Preventive on a war footing basis. This was stated by Collector MCC Preventive S. M. Tariq Huda during an exclusive interview with Customs Today at his office.

“New recruitments of chemists, IT specialists, analysts and other professionals should be made within couple of years”, he added.

The Collector MCC Preventive said the government should acknowledge that Pakistan Customs has been playing a significant role in boosting up economy, industry, internal security and foreign reserves of the country, adding that intellectual property rights, foreign reserves and internal security of the country could be protected due to powerful Customs Department.

Commenting on the entire system of Pakistan

Customs, Collector MCC Preventive Tariq Huda said that the dynamics of operations have changed entirely in the world and similarly, the data profiling is also being changed dramatically. The federal government should have to sense the speedy change of intelligence system in the entire world and ensure modernization of Pakistan Customs at par with international system.

“We need latest equipment and own resources to carry out anti-smuggling operations in sea without the assistance of any Law Enforcing Agencies (LEAs), adding that the causeway at ports has not yet constructed which also creates hurdles in conducting operations in port areas”, the Collector MCC Preventive added.

Replying to a question, Tariq Huda said that the Command and Control Room (CCR) was working efficiently round the clock in any operation conducted by Enforcement Collectorate and the recent operation at Northern Bypass in which Pakistan Customs and other LEAs demolished 48 illegal petrol pumps and seized thousands of litres smuggled POL products, was the latest example of

We need latest equipment and own resources to carry out anti-smuggling operations in sea without the assistance of any law enforcing Agencies

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SPECIALREPORT 07

DECEMBER 03 - DECEMBER 09, 2013

CCR’s effectiveness. Removed illegally-installed machinery and seized thousands of litters of smuggled POL products.

“Number of meetings have also been arranged by the Attorney General (AG) of Pakistan which were attended by FBR Chairman, Pakistan Rangers, DG Anti-Narcotics Force, DG Pakistan Coast Guard, DG Maritime Security Agency and Chief Secretary Sindh with a view to initiate coordinated efforts against illegal movement of contraband goods”, he added.

Commenting on inter-agency coordination, Tariq Huda asserted that the establishment of Inter-Agency Task Force (IATF) would be a good move by the officials concerned of all agencies, however; it should be established at the earliest.

“Data sharing from one agency to another is imperative to get better results in the future”, he added.

“We need to enhance the intelligence system among all the agencies in order to speed up the anti-smuggling operations”, Collector MCC Preventive maintained. He further informed that the

Port Control Unit (PCU) has also been established in order to keep strict vigilance on smuggling activities.

Responding to a query, Tariq Huda confirmed that Pakistan Customs with collaboration of other LEAs has completed its surveillance regarding the smugglers in Yousuf Goth and a grand operation would be launched soon against the criminals.

Collector MCC Preventive S M Huda reiterated that the operations of all the agencies are being continued against the smugglers till the final target is not yet achieved.

Answering to another question, the Collector MCC Preventive said that Pakistan Customs has also dug out and identified the mechanism of transferring the currency illegally to other countries.

“Customs Act, 1969 empowered us to gun down any aircraft in air or compel it to land, if we have the concrete information that the aircraft is carrying illegal contraband, though Pakistan Customs has not yet used its such powers and will use it in extreme conditions”, Tariq Huda added.

pakistan Customs with collaboration of other leAs has completed its surveillance regarding the smugglers in Yousuf Goth and a grand operation would be launched soon against the criminals

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08 EDITORIAL

DECEMBER 03 - DECEMBER 09, 2013

Founder & Chairman Zulfiqar Ali Editor nasim Ahmed Executive Editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-322-3370002 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDIToRIAl

fbR onThe TRAIl

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ederal Board of Revenue is all primed to reach the magic figure of Rs2475 billion which is this year’s tax revenue target. In this connection, it has already taken a number of initiatives the latest of which is the move to extend full assistance to strengthen the provincial revenue authorities through introduction of tax reforms, including drafting of tax laws/regulations for tax enforcement and increasing sales tax collection from the services sector.

At a recent meeting of provincial finance secretaries, the issue of FBR's co-ordination with provinces in fiscal matters was discussed and it was decided that in the matter of sales tax on services, which is a provincial subject, FBR will assist all the four provinces in developing a proper revenue collection mechanism. Drawing on its expertise, FBR will help draft effective rules and regulations for expanding the tax base. It will also take necessary measures to build the capacity of provincial revenue authorities in terms of framing appropriate tax laws/regulations, further refinement of definition of tax bases, risk based audits, tax enforcement and sharing of data.

It may be recalled here that after the 7th NFC Award and the 18th Constitutional Amendment a large portion of taxes in the divisible pool has been transferred to the provinces. This by dislocating the traditional channels has resulted in an increase in fiscal deficit both at the federal and provincial levels. To take care of the problem, both the federal and provincial governments will need to work in closer coordination. The Inter-Provincial Revenue Committee set up for this purpose will have to specially focus on ways and means to collect GST on services and increase revenue from the traditional provincial levies like property tax and stamp duty.

On the other hand, the Directorate General of Intelligence and Investigation Inland Revenue has sought powers under sections 111 and 122 of the Income Tax Ordinance 2001 to tax unexplained assets and income dug out during investigation. At present the intelligence wing does not have the legal authority to proceed further on the basis of its investigations and has to depend upon FBR’s field formations for further action which does not always materialize. In this situation, giving legal powers to the officers of the Directorate General will enable them to process information and generate the required revenues quickly and without any delay. The agency has also sought powers under Section 114 and Section 116 of the Income Tax Ordinance 2001 to enforce filing of income tax returns and wealth statements in major cases of concealment and income. FBR will need to move quickly in the matter so that maximum results can be derived from the exertions of the I&I Directorate.

Pakistan’s foreign currency reserves at lowest ebb ISLAMABAD

sM hAIDeR

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akistan’s official foreign currency reserves have decreased to lowest ebb by touching $2.9 billion and putting pressure on exchange rate and causing price hike on imported items.

This peculiar situation is moving rapidly towards the worst scenario as exchange companies have threatened to go on strike for indefinite period if the central bank remained unable to provide them foreign currency from next week.

All this happening on economic front is going on when the country is under the IMF’s sponsored $6.67 billion program under 36 months Extended Fund Facility (EFF).

This is quite awkward pro-

gram devised by the IMF as instead of restoring confidence it has caused serious threats of default to the economy.

The foreign currency reserves are depleting mainly because of net outflow of dollars as so far the IMF has provided $547 million as first tranche after approving the program but got back around $1.1 billion in first five months of the current fiscal year.

The foreign currency reserves will face more depletion in next month (December) as foreign inflows are still in danger and the government had to repay three small instalments to the tune of $300-$350 million in this period.

According to State Bank of Pakistan (SBP) spokesman, total foreign currency reserves stood at $8.7 billion of which the reserves held by the SBP stood at $3.4 billion and reserves held by

commercial banks at $5.3 billion on November 22, 2013.

This alarming situation has further deepened as multilateral donors such as the World Bank and Asian Development Bank linked their budgetary support of over $1.5 billion with full implementation on condition attached to the IMF program.

It is now expected that these international donors will disburse budgetary support in last quarter (April-June) period of the current fiscal year, making it difficult for the economic managers to manage external accounts in efficient manner.

On immediate basis, the government has left with no other viable options but to go ahead with off loading shares of banking and energy sector without wasting time. The government, they said, would also move ahead for launching Global De-

pository Receipts (GDRs) of OGDCL in London Stock Exchange in months ahead.

The government is also moving towards launching Eurobond worth $500 million. The government is also negotiating with the UAE rulers to get stuck up amount of $800 million from Etisalat on privatisation deal of PTCL. On November 26, 2013, Pakistan paid the 24th Instalment under IMF/SBA facility amounting to SDR (Special Drawing Rights) $258 million, equivalent to $396 million.

With repayment of this latest instalment, Pakistan to-date has repaid to IMF $6,045 million since Jul-2011, of which $ 5,256 million was under SBA facility.

After the current repayment, remaining amount due under IMF/SBA until Sep-2015 is SDRs 1,484 million.

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PICTORIAL

DECEMBER 03 - DECEMBER 09, 2013

ApTMA urges India to open its market to pakistani goods

KARACHI: APTMA Chairman Yasin Siddique has urged the Indian authorities to remove non-tariff barriers (NTBs) to boost bilateral trade between the two neighbouring countries. Speaking while welcoming the 15-member delegation of Indian journalists led by Mumbai Press Club President Gurbir Singh at APTMA house, Siddik said that Pakistan's business community has welcomed the MFN status to be granted to India and highlighted that the non-tariff barriers created by Delhi will hinder the smooth flow of trade between the two countries.

KARAChI: Ports and Shipping Minister addressing a big gathering of fishermen, fisheries managers, scientists, aquacultures, representatives of academia and media on occasion of World Fisheries Day.

polAnD: Deputy Trade Minister of Poland Danuta Sojka presenting souvenir to Minister of State for Commerce, Textile & Privatisation, Engr.

Khurram Dastgir Khan in Warsaw.

IslAMAbAD: Leader of the Opposition, Syed Khursheed Ahmad Shah enquiring about the health of Federal Minister for Finance, Senator Muhammad Ishaq Dar.

KARAChI: President Southern Gujarat Chamber of Commerce and Industry Surat-india Kamlesh Yagnik and President KCCI Abdullah Zaki sign MoU at KCCI.

KARAChI: Federal Minister for Planning, Development and Reforms Ahsan Iqbal presides over a meeting of Overseas Investors Chamber of Commerce and Industry.

IslAMAbAD: Werner E.Liepach, ADB’s Country Director for Pakistan and Haseeb Athar, Sectory BISP signed the project agreement in the presence of Enver Baig Chairman BISP.

IslAMAbAD: Federal Minister Murtaza Jatoi addressing at Pak-Afghan Trade Fair ceremony at a local hotel.

— Exclusive Customs Today photos

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10 NATIONAL

DECEMBER 03 - DECEMBER 09, 2013

fbR committees keep check on smuggling, under-invoicing

ISLAMABAD: Federal Board of Revenue has constituted two high-level committees for taking appropriate measures to control smuggling, under-invoicing and issuing sales tax refunds besides resolving the issues facing the steel industry. It is learnt that FBR has issued a letter to the Lahore Chamber of Commerce and Industry (LCCI) for constitution of special committees to resolve problems of the business community.

Clearingagentsappealforsolutionofproblems To, Honourable Chief Justice of Pakistan,

Honourable Chief Justice Sindh High Court National Accountability Bureau (NAB) has accused the innocent Customs Clearing Agents in lieu of National Logistic Cell (NLC) in the case of Nato missing containers. The NAB probed into the matter on completely illegal, unlawful, unjustiQied and unpractical grounds.

Safe transportation for Afghan Transit Trade was made Under Section 121 of Customs Act 1969 for which only Bonded Carriers were allowed to carry on transaction of departure of the conveyance from the port area. Only two Bonded Carriers i.e. Pakistan Railways and National Logistic Cell (NLC) were allowed by the Customs. The NAB demanded ATTI/CBC from Clearing Agents that should have been demanded from NLC who was the actual transporter as per act and rules. The record was demanded after lapse of the period of Qive years from the date of transaction, whereas Under Section 211 of the Customs Act 1969 and Rule 100 of Customs Rules 2001 the record of Qive years is to be maintainable.

The NAB has accused the innocent Clearing Agents without furnishing any solid/strong proofs and materials and referred the case to Honourable High Court. The National Accountability Bureau report is based on the material of Qiling of Goods Declaration received from PRAL. That data was transferred to PRAL by PACCS wherein required changes / adjustments were possible and its control was in the hands of Customs ofQicers and PRAL. The major proof of intentional er-

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: letters@customstoday.com.pk

ror in system is the Qiling Goods Declaration on the License of Clearing Agents about which they were completely ignorant. Totally close of the ofQicially website of PACCS proves that there was any intentional involvement of some people in missing containers. The PACCS System was started in 2005, the said GD was Qiled in March 2007 and no Notice regarding missing of the container was furnished by Customs before 2011 until ofQicial website of Customs PACCS was operative.

NAB did not work out on the further following points:• Either the Goods were manifested in Customs being the Afghan Cargo or Pakistani Cargo. If goods were not manifested as Afghan Cargo, the missing of the containers was beyond the control of Clearing Agents.

• Either Shipping Documents submitted at terminals by the Carriers for departure of vehicles were obtained by the NAB for scrutiny or not.

• Either the proof of missing containers is furnished in the High Court or not, if not on which basis it has been assumed that the containers were not crossed the border.

• Who was the Bonded Carrier that was actually responsible for safe transportation and to make transaction of departure of the vehicle Under Section 121 of Customs Act 1969.

Please see Rule 600 the deQinition of Chapter XXV “(Afghanistan-Pakistan Transit Trade Rules of Customs Rule 2001 that “carriers“ means legal or natural person responsible for the transport of goods including vehicles by rail, road, either directly or using third party, any by whom or in whose name a contract of carriage for hire or reward has been concluded.”

• The Cross Border Goods Declaration should have been demanded for further scrutiny from the exit Collectorate. Those Clearing Agents who do not have Customs’ License in the exit points and cannot Qile the Goods Declaration why NAB accused them of being Border Clearing Agents that is unlawful and it proves that the NAB does not know the actual facts. In such cases how NAB assumed that the containers were missed.

Assistant Collector of Customs Mr. Usman Tariq quoted NAB Section 207

of Customs Act 1969 for responsibility of missing containers i.e. business relating to make transaction of departure of vehicle from ports whereas transaction of Afghan Transit was made under Section 121 of Customs Act 1969 that may only be made by the Bonded Carriers not Clearing Agents. Please see section 121 as under:[121. Transshipment of goods without payment of duty.(1) Subject to the provisions of section 15 and the rules, the appropriate ofQicer may, on application by the owner of any goods imported at any Customs-station and specially and distinctly manifested at the time of importation as for transshipment to some other Customs-station or foreign destination, grant leave to transship the same without payment of duty, if any, chargeable on such goods with or without any security or bond for the due arrival and entry of the goods at the Customs-station of destination.

(2) The Board may, subject to rules and such conditions as it may deem Qit to impose, authorize certain carriers to transport goods under the multimodal, scheme. Goods transported under the multimodal scheme shall be specially and distinctly manifested at the time of importation as for transshipment to some other Customs-station or foreign destination.

It is challenge to NAB, AC Customs, PA Customs who accused those Clearing Agents for the missing containers who do not have Licenses of Bonded Carriers that Goods Declaration of any Clearing Agent for Afghan Cargo of any Container lying at port to make transaction for departure of vehicle from any seaport, if someone is succeeded, Clearing Agents would be bound to accept all undue liabilities otherwise case may be discharged immediately and exact accusers may be punished accordingly.

Some Rules of Customs Rules may be seen: Rule 326. DeQinitions - In these rules, unless there is anything repugnant in the subject or context,(c) “carrier” means the Pakistan Railways, National Logistic Cell (NLC), Sambrial Dry Port Trust, Faisalabad Dry Port Trust, Multan Dry Port Trust or such other carrier as the Central Board of Revenue may approve from time to time and are duly licensed under Chapter VIII of Customs Rules,2001; (e) “conveyance and transport unit” means conveyance, vehicles and transport units used by the carrier for the transshipment of goods from port to another Customs port or stations; 328. Conditions for qualifying as a bonded carrier and its operations.(1) Transshipment shall only be allowed if the bonded carrier possesses a Qleet of minimum twenty Qive registered vehicles in his name or company or are leased by them. The bonded Carrier will be allowed to use only such vehicles/trailer units which have a permanently installed/Qixed

tracking device of a reputable company. The Customs staff shall verify the satisfactory working of the tracker and the identity of the vehicle used by the bonded carrier for transshipment of consignments, as well as the road worthiness of the vehicle/trailer/prime mover and registration number and other particulars of the vehicles.

(6) The applicants shall deposit a bank guarantee or Defence Saving CertiQicates etc., or a mix of such securities for Qive million rupees with the concerned Collector of Customs to safeguard Govt revenue. The Collector of Customs, if not satisQied with this condition, alone may subscribe the system of revolving insurance guarantee keeping in view the huge amount of duty and taxes involved in transportation of bonded cargo to upcountry dry ports. The amount of bank guarantee or Defence Saving CertiQicates shall be forfeited apart from other consequential penal action under the Act, and the rules made thereunder, if the bonded carriers misuse the facilities of the transhipment of the imported goods.

Please note if Clearing Agents are supposed by the NAB as bonded carrier, the recoverable amount in this case should have been forfeited as per Rule.

329. Responsibilities of the Carriers.(1) Prior to submission of application (Appendix-I) for transshipment, the carrier shall satisfy himself that the actual description, quantity, quality and weight of the goods under transhipment are as per declaration in the IGM of the vessel.

In case any misdeclaration or substitution is found at subsequent stage, the carrier shall be held responsible under sections 32 and 121 of the Act. (2) The carrier shall be responsible and bound to carry the goods to its destination without any delay and with utmost haste. The carrier shall also be bound to deliver the bonded cargo to its destination within the prescribed time-limit, using the transport route, as may be prescribed by the Board, from time to time.

The Clearing Forwarding Agents are not allowed to make business transaction of departure of con-

veyance / goods from port for Transshipment and safe transportation.

However, there Licensee can make declaration of goods Under Section 79 and Customs formalities may be made on the Goods Declaration until the Containers / Goods are lying within in the custody of Customs’ bonded terminal. The terminal / Customs may issue transit permit only to the Bonded Carriers as per law and procedure who are responsible for safe transportation.

If the Goods Declaration was Qiled on License of Clearing Agents (with unknown sources), the Transit Permit was issued to the Bonded Carriers. In this case, NLC was the actual transporter and responsible to provide Cross Border CertiQicate vide section 641 of Customs Act 1969 read with rule 329 of Customs Rules 2001.

The computerised system of NLC is showing transaction of the departure of the vehicles but on demand of Clearing Agents NLC did not provide necessary documents. It proves there is involvement of NLC in the missing containers. Even Terminals of Ports and Shipping Companies also refused to provide the required documents to scrutinise the case.

In a case data of PRAL consignee’s name was showing as Afghani Importer against GD No. 2848 dated 20.03.2007 while it was noticed that in the history of computerised system of QICT Consignee’s name was showing as Mehran Spice and Import Industry, Karachi and departure of the vehicle was made by NLC who intentionally refused to provide the required documents to the Clearing Agents and it was asked by the lower staff that higher authorities ordered them not to give any documents to someone in the case of missing containers. In such cases Clearing Agents are blind how GD was Qiled on their Licences and even consignees of Pakistan are also still blinds that their containers were moved for Transshipment.

In the light of above facts The Honourable Chief Justice of Pakistan, The Honourable Chief Justice of High Court of Sindh, Honourable FTO and Chairman FBR are requested to kindly give relief to the innocent Clearing Agents who are not involved in the cases of missing containers. The record of the missing containers may be demanded from the Terminal Operators, Actual Transporters M/s. NLC or Pakistan Railways for which they are responsible and shipping companies should also be ordered to provide speciQic manifests for scrutiny.

It is prayed that innocent Clearing Agents may please be released and the NAB is requested to investigate the case on the right grounds and directions as per Customs rules, acts and procedure.

With profound respect,

Great Eastern Co. Clearing and Forwarding Agent, Karachi

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CARTOONSSPECIAL

DECEMBER 03 - DECEMBER 09, 2013

Textile exports increase by 7.5pc in four months

LAHORE: Overall textile exports rose by 7.5% in the current fiscal year up to now as compared to the same period in previous fiscal year. The textile sector exports stand at $4.7b this fiscal year until now.

This was revealed by Pakistan Bureau of Statistics (PBS) data on exports. Textile exports contribute 60 per cent of the country’s annual exports. Exports counted in at $1.1b in the month of October which is 12% down as compared to the last month, according to the latest (PBS) export data.

I’m expecting a big refund check this year --unless the IRS checks my addition.

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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