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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CuSTOMS
Vol 2 Issue No. 01
Karachi, Tue Jan 21 - Mon Jan 27, 2014
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gRANTINg NDA STATuS
On the eve of a ministerial visit to india, Dastgir said Pakistan is working on granting Non Discriminatory access (NDa) status instead of MFN | SEE PAgE 04 |
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FBr chairman Tariq Bajwa has been requested by US embassy to brief its officials on 2013-14 revenue collection position | SEE PAgE 10 | REVIEWINg SROS
KARACHI: The PML-N government is vigorously pursuing its manifesto to steering the country out of the prevailing crises through good governance, transparency and elimination of corruption. The government is committed to sparing no effort to put the country on the path to progress and prosperity. Federal Minister for Finance Ishaq Dar stated this while addressing the business community at a programme titled “My Karachi, Oasis of Harmony,” organised by the Karachi Chamber of Commerce and Industry (KCCI) at a local hotel. >> See page 3>
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The govt is reviewing all the issued SrOs and Finance Minister ishaq Dar has been briefed on various options to amend or abolish these SrOs | SEE PAgE 06 | CARTOONS SPECIAL
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aking swift action on an interview published in customs Today recently, Federal Minister for railways khawaja Saad rafique has accepted the longstanding demand of Lahore customs clearing agents association (Lccaa) and ordered resumption of freight train service from karachi to Mughalpura Dry Port, Lahore. it is to be noted that on the occasion of launch of customs Today’s stall at Lccaa office on January 8, customs agents chairman amjad chaudhry and President agha iftikhar put forward their most sought-after demand for the restoration of cargo train service to MNa Pervaiz Malik and requested him to personally take up the issue with khawaja Saad rafique. Wasting no time, Pervaiz Malik discussed the matter with the railway Minister on the phone and asked him to resolve the issue as soon as possible. Taking special initiative, the railways minister ordered restoration of freight train service from karachi to Lahore after just one week of time. a large number of customs agents received the train at Mughalpura dry port on January 16 and extended special gratitude to the railways Minister for fulfilling their longstanding demand.
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Sharing his joys on arrival of freight train at Mughalpura Dry Port, amjad ch and agha iftikhar expressed their hope that the launch of freight train service at Mughalpura Dry Port will help Punjab earn hefty revenue. currently almost all the goods containers are being cleared in the port city. amjad chaudhry also laid stress on the need for running freight trains across the country to transform loss-making railways into a profitable venture. “We have facilitated the railways in every way to start the operation. One train has reached the port and the other is on its way to reach the port,”said Lccaa chairman amjad ali chaudhry. he lauded the efforts of Prime Minister Nawaz Sharif and his team for restoring the cargo operation. he hoped 5-6 thousand families attached to the port will be able to earn their livelihood, adding that all stakeholders including customs agents, transporters, importers and exporters will work efficiently. Lccaa President agha iftikhar said the cargo train will arrive twice a week at the port in the start and it will gradually be increased later on. he said that due to cargo train, per unit cost will be reduced. he informed that the train was carrying 720 tonnes of goods and articles worth millions of rupees in 40 containers. chief Traffic Manager Dry Port, altaf hussain Phulpoto said that as railways earning and
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economic development is linked to the cargo trains hence the department has started the operation of first freight train. he stated that the department has planned to make the cargo trains fully operational adding that these trains will also be made functional to all other dry ports including rawalpindi and Peshawar to make the railways a profitable department.
“it is the beginning and with the gradual addition of locomotives to our strength we will increase the number of cargo trains,”he added. Now Lahore customs agents are awaiting realisation of their other demand for completion of the broken road of the Mughalpura dry port. This issue was also taken up by Pervaiz Malik with the LDa chairman.
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POrTS & ShiPPiNG
JaNUarY 21 - JaNUarY 27, 2014
China becomes world’s largest trading nation
BEIJING: China’s trade including export and import has reached $ 4.16 trillion in 2013, a 7.6 per cent increase in contrast to previous year, making it the largest trading nation of the world. Chinese Customs data revealed that as per year on year, China’s exports rose 7.9 percent to $ 2.21 trillion in 2013, while imports increased 7.3 percent to $ 1.95 trillion. The foreign trade surplus widened to $ 259.75 billion in 2013, an increase of 12.8 percent from a year earlier, said Zheng Yuesheng, spokesman for the General Administration of Customs.
Slash in ST on fabric imports; govt violates commitment with iMF he Federal Board of revenue (FBr) issued statutory regulatory orders (SrO), reducing sales tax to three percent from five percent on import and local supplies of fabric, violating its own commitment with international Monetary Fund (iMF). as per details, the government through a memorandum on economic and financial policies for 2013-16 presented to the iMF for the latest loan programme – had committed to eliminate the SrOs granting exemptions or concessions by December 2013. But the issuance of a number of statutory regulatory orders (SrOs) and subsequent reduction in sales tax on import of fabrics seems contrary to the commitment the government has made with the iMF. On the one hand, the government has stopped issuance of any new tax concession or exemption (including customs tariff) through SrOs except by a Parliamentary act, and has planned doing away with the practice through legislation by December 2015. On the other, the FBr issued four SrOs related to sales tax reduction to three percent from five percent on import and local supplies of fabric with value addition tax rate at two percent. This step reflects the government has succumbed to the pressure of certain “high and mighty individuals” because there is a vehement demand a 17 percent sales tax on import and local supplies of fabric. The experts termed it a political decision and feared that the step would result in loss of huge revenue to the national kitty. Meanwhile, the FBr also unveiled a mechanism for payment of refund which has perturbed the industrialists. —CT Report
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Rajpar for privatization of public enterprises hairman Pakistan Ships’ agents association (PSaa) Muhammed a. rajpar said that it was imperative to privatize state-owned enterprises in order to boost economy of the country. Talking to customs Today at his office, rajpar said that the present government should take effective measures in order to decrease external trade deficit. highlighting the performance of labour pool in karachi Dock Labour Board (kDLB), chairman PSaa said the employees are working only for 10 days in a month while they are getting wages for the whole month, adding that the authorities concerned should look into the matter on war footing basis, so millions of rupees of national exchequer could be saved. On the occasion, rajpar appreciated the Musharraf government for its focus on the National Trade corridor improvement Programme (NTciP) and hoped that the present government must take appropriate steps in order to continue the said NTciP project in an effective manner. —CT Report
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MCC-Appraisement (East) detects 266 cases of tax evasion
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he Research & Development (R&D) section and Examination department of the Model Customs Collectorate (MCC) of Appraisement (East) has detected 266 cases of mis-declaration, tax evasion and under-invoicing altogether during first and second quarter of the Fiscal Year 2013-14 and recovered an amount of Rs 168.45 million till December 31. According to details, R&D section of MCC-Appraisement (East)
has detected total 180 cases of under-invoicing and mis-declaration out of which 17 cases of Rs 41.74 million were detected in the month of July; 28 cases of Rs 39.86 million in the month of August; 8 cases of Rs 15.61 million in the month of September; 7 cases of Rs 22.08 million in October; 14 cases of Rs 31.12 million in November; and 106 cases of Rs 226.81 million in the month of December. Similarly, the Examination Department of MCC-Appraisement (East) has found total 86 cases of under-invoicing and mis-declaration during six months from July to December, 2013. In the months of July and August, the Examination Depart-
revenue wizards poised to rationalise concessionary SrOs he government has constituted a highlevel committee under the chair of Finance Minister ishaq Dar to pave the way for the withdrawal or rationalisation of Statutory regulatory Orders (SrOs), dealing with concessionary tax regime. The Federal Board of revenue has issued a notification in this regard which mentions that the federal government has constituted a committee to contemplate recommendations of the committee headed by the FBr chairman to identify concessionary Statutory regulatory Orders (SrOs) which can be rationalised, simplified, minimised or deleted in the budget fiscal year 2014-15. The committee has also been tasked with the review of each SrO on the basis of the approved "Principles for review" and finalising their rationalisation, simplification, minimisation or deletion over the next three years. Federal Finance and revenue Minister ishaq Dar heads the committee comprising Minister for industries, Minister for Planning and Development, Minister of State for commerce and Textile industry, chairman Board of investment, Secretary Finance, Secretary commerce, Secretary industries, Secretary revenue Division/chairman Federal Board of revenue, [Secretary of the committee], Presidents of Federation of Pakistan chambers of commerce & industry, karachi chamber of commerce & industry, Lahore chamber of commerce & industry, Sarhad chamber of commerce & industry and Quetta chamber of commerce & industry Quetta. —CT Report
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ment has detected 30 cases of duty evasion of Rs 24.36 million; 17 cases of Rs 15.05 million in the month of September; 18 cases of Rs 19.25 million in the month of October; 21 cases of Rs 7.56 million in the month of November. However, no such cases were found in the month of December by the Examination department. Sources in R&D section have informed Customs Today that Pakistan Customs has recovered a sum of Rs 168.45 million till the end of December,31 out of total detected amount i.e. Rs 443.44 million. They further said that the R&D section was making its all out efforts for recovering the remaining amount of Rs 274.99 million.
customs can generate rs3b revenue by releasing stuck-up imported vehicles karachi
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bout 1,000 imported vehicles are stuck at port as Pakistan Customs is yet to clear them since November 2013. The vehicles have been imported under the scheme of personal baggage, gift and transfer of residence and government can collect revenue of about Rs 3 billion by releasing these vehicles. In February last year, the ministry of commerce through an ofNice order allowed the release of such vehicles that were few months older than the prescribed age limit of 3 years. "Considering the hardship faced by the importers of vehicles under the schemes of personal baggage, gift and transfer of residence, where the imported vehicle is only a few months older than prescribed age limit of 3-year, it has been decided to allow release of such vehicles against a surcharge levied by the
customs in whose jurisdiction the vehicles was imported on Cost and Freight (C&F) basis," said an ofNice memorandum issued on February 25, 2013 by the ministry of commerce. The delay in shipment of vehicles older than 3 year and 8 months shall be condoned if not in excess of 30 days against a surcharge at 5 percent per fortnight of C&F value, it added. The memorandum also said that the EGM and cargo vessel leaving the port of export may be considered with reference to cutoff date. Following this memorandum, the customs authorities were releasing the above age limit imported vehicles at minimum surcharge of 5 percent and maximum 13 percent during February to October 2013 and few thousands cars were cleared during the period. However, in November 2013, the customs suddenly stopped clearance of imported vehicles of 2009 model declaring the import of above 3-year vehicles illegal. According to customs authorities, the memorandum was for a spe-
ciNic time period and only for those vehicles shipment of which was delayed after the government's decision to reduce the age limit. The federal government had reduced the age limit of imported cars from 5 to 3 year in December 2012 aimed to support the domestic automobile industry. Customs ofNicials claimed that interpretation of that memorandum was incorrect that created a crisis like situation and now vehicles of 2009 model will be released after a new approval from ministry of commerce. Presently, the customs has completely stopped the clearance of imported vehicles of 2009 model and seeking a clariNication from the ministry for release of these vehicles, source said. "We are not sure about the actual units but around 1,000 imported vehicles are stuck at port as customs has refused to clear these vehicles without any new directives from the ministry or Federal Board of Revenue", they added. Sources said that some Rs 4-5 billion investment of
overseas Pakistanis has been blocked due to non-clearance of these vehicles, while the government is also suffering billions of rupees loss on account of revenue. The cost of these vehicles is also increasing as now the importers will be required to pay millions of rupees demurrages, imposed by the port authorities. These vehicles are lying at ports from last three to four months and importers have to pay approximately Rs 100 million on account of demurrages to the port authorities. Sources said that import of used cars is generating billions of rupees revenue for government as there is some 100 percent duty on import of vehicles. The federal government has collected about Rs 35 billion revenue during the Nirst half of FY 201213, when age limit was up to 5-year. While some Rs 12 billion were received on account of import duty during second half of FY 2012-13, as in December 2012 government had reduced the age limit of imported cars up to 3-year.
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NaTiONaL 03
JaNUarY 21 - JaNUarY 27, 2014
Iran customs seizes 18 tonnes precursors for heroin production
TEHRAN: Iran’s Customs officials have seized 18 tonnes of precursors used for making heroin in northeastern province of Khorassan Razavi, provincial customs official announced. Iranian Interior Ministry has said that the amount of discovery of illicit drugs by Iran’s drug combat squads has increased by 20 percent in the past six months. Each year, the Iranian government spends hundreds of millions of dollars erecting barriers along the borders with Pakistan and Afghanistan and pumping resources into checkpoints.
he Standing committee on Ports and Shipping of Upper house of the Parliament emphasized handing over 84 acres of land to chinese company and completion of all road links prior to the company starts operating Gwadar Port. The Senate Standing committee on Ports and Shipping, in its meeting held with Senator Fateh Muhammad hassani in the chair, also expressed concern over the rejection of a summary moved by the Gwadar Port chairman seeking rs1.5 billion to purchase dredges for the Port authority. The committee members asked the Finance Ministry to provide rs1.5 billion the Gwadar Port authority. On the occasion, the participants were apprised that rs400 million would be required to purchase alternative land for 85 acres of land currently in possession of Pakistan Navy in case of any objection raised by the investor. The meeting also directed the National highway authority (Nha) to complete N-85 and M-8 to connect the highways of Sindh, Punjab, kPk and all the districts of Balochistan with the port. The participants were informed that a cell has been set up in the Prime Minister’s Secretariat to facilitate chinese companies and investors and a ministerial level meeting of the two countries is scheduled to take place in Beijing in the current month. it was also informed that the Frontier Works Organisation (FWO) had already started work. Meanwhile, the committee chairman pointed out that in light of the recommendations of the subcommittee, Pakistan Navy should hand over 500 acres of land immediately to the Gwadar Port authority (GPa) while the federal government should take possession of remaining 84 acres. —CT Report
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Tax directory: a major breakthrough in taxation system, says Ishaq Dar From page 1 Speaking on tax collection, the Finance Minister advised that the provincial government should explore more ways for tax collection after the introduction of 18th Amendment. Ishaq Dar conNirmed that the FBR would publish a directory containing tax details of all taxpayers till February 15, 2014, adding that the Finance Ministry had invited the business community to hold talks with the FBR ofNicials if they had any reservations about the issuance of tax directory. According to Dar, the directory will feature the name, NTN and tax paid by every taxpayer. “The world community mocks Pakistan for non-transparent collection of taxes from businessmen and parliamentarians, so let’s do something transparent once and for all,” Dar said, adding that it was the government’s responsibility to identify tax defaulters. Ishaq Dar informed that the tax collection, Niling of tax returns and export volume had increased as compared to the previous Niscal year. “We will take forex reserves up to $20 billion within the next three years and it will reach $16 billion by the end of this Niscal year”, he divulged. Ishaq Dar lauded the role of the chamber, saying that the KCCI always played a leading role for development of the country. He emphasised that proactive interaction between the business community and the government would surely augment the efforts to lasso the economic crisis. KCCI President Aamir Abdullah Zaki, BMG Chairman Siraj Kassim Teli, Zubair Motiwala, the Executive Committee members, PIFFA Chairman Abdul Majeed Paracha, SBP Governor Yaseen Anwar, FBR
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Senate body for handing over 84 acres of Gwadar land to chinese company
Chairman Tariq Bajwa, Member Customs Nisar Muhammad, Chief Collector Appraisement (South) Nasir Masroor Ahmed, Collectors Abdul Rasheed Shaikh, Dr. Agha Jawwad and others were also present on the occasion. Highlighting the government performance during the last seven months, the Finance Minister claimed that the present government had issued 26 SROs with the sole aim to resolve real issues of the business community. Dar pointed out that the government had cut a sizeable of Rs135 billion from its expenditure and paid back circular debt after the announcement of its Nirst budget for the FY2013-14. He maintained that the government had also recovered Rs20 billion in share of dividends and Rs138 billion from commercial enterprises. “Small and Medium Enterprises (SMEs) have shown growth from 0.4 percent to 4.8 percent despite the fact that the incumbent government had inherited multifarious challenges”, Dar added. The Federal Min-
ister for Finance informed that the government would bring down Niscal deNicit to 4 percent within the next three years, adding that the government anticipated a development share of $1.70 billion from the international community while the World Bank had also assured the government of the funds release. Ishaq Dar maintained that Japan International Cooperation Agency (JICA) had also agreed to initiate Karachi Circular Railways (KCR) project by the end of February. On the occasion, Ishaq Dar also assured the business community that the government would support and facilitate them in GSP plus trade. Speaking on the occasion, Businessmen Group (BMG) Chairman Kassim Teli assured that the business community stood by the government’s endeavours to improve the law and order situation in Karachi. Teli stressed reformation of FBR on war footing basis to improve its capacity to deliver. Abdullah Zaki, KCCI president, and Siraj Kassem Teli, former KCCI president, as well as business lead-
ers demanded that instead of publishing details of existing taxpayers, the government should make public the names of tax evaders. Business leaders claimed that the release of taxpayer details will create problems for them, especially in view of the law and order situation in Karachi. He said a level playing Nield should be given to manufacturers and exports, adding that the issue of FED on edible oil was not yet resolved. He also lauded the government initiative for the construction of Gwadar-Kashghar business corridor, Gaddani Port and other projects for development of business activities in the country. On the occasion, the KCCI President thanked the Federal Finance Minister for attending the programme and listening to the issues of business community. Earlier, a detailed presentation on grant of GSP plus status to Pakistan was given by Zubair Motiwala to the Federal Finance Minister and other dignitaries. Later, the President presented a souvenir to Federal Minster for Finance Ishaq Dar.
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04 NaTiONaL
JaNUarY 21 - JaNUarY 27, 2014
Man held with heroin
ISLAMABAD: The Airport Security Force arrested a man with one-kg of heroin at Islamabad airport. As per details, the man identified as Rashid was going to UAE and had attached the contraband with his body. The accused said to be a resident of Kurram Agency of tribal area. The accused succeeded in clearing different checking points including first entry search, customs, anti-narcotics and FIA bounding immigration but was caught by the ASF personnel.
akistan customs has initiated an effective onslaught against flight of foreign currency through passengers and has so far been successful in recovering a substantial amount during its operation, official sources said. a customs official said that airport staff is ensuring the filing of the currency declaration form at departure. This is followed by a physical inspection in case of suspicion, the official said. customs authorities intercepted two passengers during the last three days and recovered a huge amount of foreign currency from their possession. customs staff arrested a resident of Peshawar, who was going to Dubai. The staff recovered 276,850 Saudi riyal and 27,000 (equivalent to $ 76,000 and rs 8.1 million) which was concealed in his socks and jacket. The recoveries were made after thorough examination of baggage. in another case customs staff recovered 31,000 Saudi riyal and 87,000 UaE Dirham (equivalent to $ 32,000 or rs 3.4 million) from a passenger. a hundred and fifty used mobile phones were also recovered. customs officials said that the latest recovery was a continuation of the anti-smuggling drive launched by Federal Board of revenue to deter illegal outflow of currency from Pakistan. —CT Report
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Ship-breakers, gold importers to face the wrath yed ijaz hussain, Director General of intelligence and investigation, inland revenue (ir) has decided to deal strictly with ship-breakers, gold importers and others to plug revenue leakage. he made this decision during his recent visit to karachi. Sources said that Director General had convened a meeting with the officials of inland revenue and directed them to expedite the process of tax recovery besides taking appropriate measures to plug revenue leakage. Sources said that DG ijaz hussain has ordered field formations to take action against tax evaders in ship breaking industry and gold import. They said field formations had also been tasked to deal with non-taxpayers having luxury vehicles and bogus refund claimants with an iron hand. Directorate General DGi&i-ir, karachi had so far gone at it hammer and tongs against unscrupulous elements and remained successful in establishing deterrence. Sources said that investigation in a fake refund case had been initiated by DGi&i-ir, karachi in april 2012 and since then the department has identified a colossal revenue loss of rs 4 billion. They said that the department had not only recovered around rs 2 billion in this case but also averted further revenue loss by blocking fake refunds amounting to rs 2.7 billion. —CT Report
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No MFN but NDA status for India: Dastgir both countries not having any negative list," he said. Khan, who travelled to India last week to meet with Indian Commerce Minister Anand Sharma on the sidelines of the SAARC business leaders’ conclave, said the purpose of his visit "of course is to put the trading relations back on the rails." The commerce secretaries from both countries also met in New Delhi after 16 months. He explained, "What we have found is that substantial progress was made in 2011-12 but then other events intervened and not only blocked diplomatic progress but also trade progress. And this is one of the other things that I wish to convey to my counterpart and the Indian government." "Now after 66 years of independence, we should be able to have a relationship which is not dependent on single events," Khan said. Bilateral trade between India and Pakistan touched USD 2.6 billion in 2012-13, an increase of 34.4 per cent over last year's USD 1.94 billion. "So the next step in the roadmap is
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n the eve of a ministerial visit to India, Commerce Minister Khurram Dastgir said Pakistan is working on granting Non Discriminatory Access (NDA) status instead of the contentious MFN. "There is no rethink. The correct way is to have a normal trading relationship. What we are working on, at the moment, is what we call Non Discriminatory Access (NDA) which essentially means the same thing without any other connotation," Pakistan Commerce Minister Khurram Dastgir Khan said in a recent interview with Press Trust of India. He was replying to a query on whether there was any rethink on the proposal to grant Most Favoured Nation (MFN) status to India as decided in 2012. "It is just a name. What we want is normal trading relationship with
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customs vigilant in averting flight of foreign currency
FBr wants amends to procedure for ST registration iSLaMaBaD
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he Federal Board of Revenue is likely to notify amended sales tax registration procedure once the Law and Justice Division cleared the proposed amendments after vetting. It is to be noted that comprehensive amendments to the special procedure for sales tax registration have been proposed by the FBR to do away with existing faulty system. The prevailing system lacks provision to physical verify declared business premises of the applicants seeking Sales Tax Registration Numbers (STRNs). The FBR preferred to amend the existing procedure for sales tax registration which likely to be notiNied in the current month. The
sales tax law makes mandatory the registration of manufacturers, retailers, importers, wholesalers, distributors and commercial exporters. According to experts the existing registration system is not a riskbased system, with faulty veriNication mechanism. Description of goods and HS Codes are not available for sectoral analysis, proNiling and checking misuse of invoices. They are of the view that registration data does not help in thorough analysis of the returns. The FBR has adopted a twopronged strategy for sales tax registration which consists of cleansing existing database and evolving a risk-based system for new entrants. The cleansing exercise envisages that premises will be verified through GPS enabled devices by using application with business activity code. There will be online
interface for updating missing information like HS Code, utility connection number, etc. Under the system, new application will be processed according to the risk parameters which have already been defined on the basis of declaration risks and third party risks. In case of low risk, registration would be allowed merely on GSM verification. For medium and high risk cases, registration will be allowed after verification of documents and GSM verification. It is expected that the utilisation of declared capital information will help control fake invoices. The system, having linkages with WeBOC and Expeditious Refund System (ERS) will provide a centralised single source of information managed through a uniNied database, and will help in correct return analysis and elimination of invoice misuse.
Customs to get 60 vehicles for curbing cross-border smuggling iSLaMaBaD
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s part of a multi-pronged strategy to curb smuggling on borders, Pakistan Customs is likely to get 60 vehicles to augment its anti-smuggling Night. According to Customs Deputy Collector Sadiqullah Khan, the vehicles are being provided under a pledged made by the American Department of Homeland Security at the International Donors’ Conference. He said that the US agency had affirmed its pledge to work jointly with the Pakistani authorities for better security on borders and curb smuggling activities. He said that the agency had pledged to provide 60 vehicles to Pakistan for which
Delivery of these vehicles would expedite the FbR efforts to curb smuggling
order had already been placed to Toyota Pakistan. The deputy collector pointed out that six of the total 60 vehicles would be provided to Islamabad Collectorate which were likely to be delivered in a couple of months. Sadiqullah Khan informed that Pakistan Customs had been grappling with different problems to uproot smuggling and increase revenue, adding that lack of human resources, advanced detecting and monitoring equipment and weaponry, especially absence of fastmoving fleet of vehicles had been hindering all such efforts. The deputy collector expressed the hope that the delivery of these vehicles would expedite the FBR efforts to curb smuggling and enhance the Collectorate capacity.
that we have to facilitate the trade through Wagah. This is what we are going to talk about. As the road map says, we facilitate through Wagah, then India has to reduce SAFTA Sensitive List by 30 per cent. So Wagah is one milestone, India reducing SAFTA Sensitive List by 30 per cent is another milestone. And that is how we make gradual progress," Khan said. "On visa facilitation, on customs facilitation and mutual recognition of standards. So the three agreements are already in place but they need to be implemented by both countries." Asked again for a timeline, he said, "It took 16 months for the commerce secretaries to meet. These things happen in PakistanIndia relationships. When the previous roadmap was agreed, it was very optimistic. But the fact is nothing happened on that roadmap. It is better for me express the commitment of our government." "It is not too far off that there is enough conNidence for us to reach the Ninal stage of abolition of negative list," Khan said.
Shortage of manpower in PRAL hinders WebOC modifications he Directorate of reforms and automation has completed the planning of the Land customs Station, afghan Transit Trade (aTT) and Export Processing Zone authority (EPZa) modules in WeBOc. however, due to the shortage of manpower in Pakistan revenue automation private Limited (PraL) Department, the software development and installation of those modules in shape of programmes in WeBOc have not yet been completed, it is learnt. Sources on condition of anonymity told customs Today that the working of the Directorate of reforms and automation in form of up-gradation of WeBOc is badly affected by PraL Department, as the preparation and planning of the WeBOc modules have been completed by the Directorate of reforms and automation, but the insufficient manpower in PraL creates impediments in software development for WeBOc. Sources said that skilled and competent employees of PraL are leaving the department due to low remuneration package. Due to this the working of the department is affected ultimately, as newcomers need time to understand the technicalities of the system. They further informed that the authorities concerned were trying their level best to complete the working of the development and deployment of software for up-gradation of WeBOc by the end of January, this year. it is pertinent to mention here that FBr had issued directives to the authorities concerned in Pakistan customs to complete the amendments in the modules of WeBOc till December 31, 2013. —CT Report
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Singapore port records considerable growth in 2013
SINGAPORE: Port of Singapore has again been able to maintain its lead in bunker sales, and achieved considerable growth in annual vessel arrival tonnage, container and cargo throughput 2013. Singapore Registry of Ships also continued to grow in size and ranks among the top 10 worldwide. By now Singapore is home to about 130 shipping groups. The maritime cluster employs more than 170,000 people and contributes some seven per cent to Singapore's Gross Domestic Product.
Mcc-appraisement (West) detects 16 cases in Dec he research and Development (r&D) section of Model customs collectorate (Mcc) appraisement (West) has detected 16 cases of misdeclaration, inadmissible claim of FTa and benefit of sales tax SrO, incorrect application of valuation rulings and inadmissible claim of customs duty in the month of December 2013 and recovered an amount of rs 3,032,822. according to details, r&D Section of Mcc-appraisement (West) has found that some importers including M/s Mian corporation, M/s ici Pakistan, M/s Zia &co, M/s haider &co, M/s Saleem & M/s Fabric Textile industries, M/s Shoaib Enterprises, M/s Mh Enterprises, M/s Syed Enterprises, M/s hanaska international, M/s Sattar Electronic, M/s Gilani Trading co, M/s Tandi Trading co and M/s Sandal Dyestuff industries are involved in misdeclaration and tax evasion while filing Goods Declaration for their consignments. Subsequently, r&D section of Mccappraisement (West) has recovered an amount of over rs 3 million against the total amount of rs 13,532,662 while rs 10,499,840 are yet to be recovered. Those importers and companies who fulfilled the demands raised by r&D Section of Mcc-appraisement (West) include M/s Mian corporation which paid an amount of rs 198,349; M/s ici Pakistan paid an amount of rs 520,459; M/s Zia & co paid an amount of rs 45,968; M/s haider paid an amount of rs 552,446; M/s hanaska international has paid an amount of rs 2,774,350; M/s Sattar Electronic paid an amount of rs 915,334; Gilani Trade co paid an amount of rs 248,566; and M/s Tandi Trading co paid an amount of rs 274,247. —CT Report
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Customs duty collection: MCC Lahore achieves overall growth of 30pc LahOrE
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odel Customs Collectorate Lahore has collected in total a Customs duty of Rs 11,140 million during the Nirst half of Financial Year 2013-14, up by 30.52 per cent against Rs 8,535 million in the same period of FY 2012-13. According to the documents available with Customs Today, the station wise collection of customs duty by MCC (Appraisement) Lahore stood at Rs 8,502 million during the Nirst half of FY 2013-14. MCC (Appraisement) achieved a growth of Rs 2069 million, 32 percent more compared to the collection of Rs 6,432 million in FY 2012-13. Further bifurcation exhibits that the collectorate achieved a growth of Rs 1,151 million at the Mughalpura Dry Port station, which is 107 percent additional compared to the same period last year. The collectorate also pulled off good revenue growth of Rs 1,642 million at the Central Freight Station which is 49 percent above compared to the same period last year. However, the collectorate showed poor performance at the Machikay suffering a loss of Rs 448 million which is 26 percent less amount as compared to the same period last year. The collectorate gathered Rs 1,286 million during FY 2013-14 against Rs 1,735 million during the same period of the previous Niscal year. The collectorate faced a negative growth of customs duty at the Prem Nagar Dry Port as only Rs 81.79
million were collected against Rs 276 million during the same period last Niscal year. The collectorate underwent a loss of 70 percent at the Prem Nagar dry port. GPO Customs Duty also exhibited a declining trend as only Rs 6 million were collected against Rs 18 million during the same period last Niscal year. The collectorate extended rebate
and refund of Rs 105 million against Rs 26 million which is Rs 78 million more than the same period during FY 2012-13. Well informed sources said that the decline in customs duty at certain stations has primarily recorded due to the less business activities in the recent year at the Prem Nagar and Machikey and because of the
Mcc Lahore seizes goods worth rs168m in 6 months
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nti-smuggling wing of Model Customs Collectorate (MCC) Lahore has impounded vehicles, goods and articles worth Rs 168 million during the Nirst half of Ninancial year 2013-14, up by 6 percent as compared to the same period of the previous Ninancial year. The collectorate seized vehicles, good and articles worth Rs 158.79 during the first six months of FY 2012-13. During the first half of 2013-14, the wing registered 48 cases against non-duty paid vehicles worth Rs 21 million while seized goods and articles worth Rs 147 million in 129 cases. The number of cases shot up by 15 pc during the period under review. The impounded goods and articles included liquor, cloth, plastic products, auto parts, iron and steel coils and sheets, medicines, electronic goods, toiletries products, power genera-
tors, artiNicial leather, skimmed milk powder, garments, electric bikes and cigarettes. The anti-smuggling wing impounded vehicles, goods and articles being smuggled to local market under section 157 of the Customs Act, 1969. During the first two months of FY 2013-14 i.e. July and August, the wing collected Rs 44 million and 41 million respectively against Rs 13 million and 28 million during the corresponding period of FY 201213. Number of the cases during FY 2013-14 surpassed the FY 2012-13. During July and August of FY 2013-14, the wing registered 61 cases against 58 in FY 2012-13. In order to completely overcome the menace of smuggling, Pakistan Customs needs full tightening of grip on the smugglers who have been badly affecting the local industry and generating unemployment. —CT Report
unavailability of freight trains. Similarly, MCC (Preventive) achieved growth of Rs 536 million in customs duty during FY 201314, which is 25 percent more than that of the same period last Ninancial year. MCC (preventive) collected Rs 2638 million during the Nirst six months of FY 2013-14 against Rs 2102 million during the same period of previous Niscal year. MCC (Preventive) collected Rs 2,380 million at the Air freight Unit (AFU) during the current Ninancial year which is 32 percent additional compared to Rs 1,801 during the same period last year. The collectorate also showed good performance at the Land Freight Unit (LFU) collecting Rs 149 million against Rs 72 million during the same period last year which is Rs 77 million additional, 107 percent more than the same period of the previous Niscal year. In the same way, Railway Station collected Rs 465 million during the Nirst six months of current Ninancial year against Rs 308. 65. The growth during the Nirst half of the current Ninancial year stood at Rs 156 million which is 51 percent more than the same period during the last Niscal year. Collection of customs duty under the head of ‘Others’ however remained negative as the collectorate collected Rs 27 million less than the same period last year. MCC (Preventive) extended refund and rebate of Rs 403 million during the Nirst half of current Ninancial year against Rs 152.91 million, which is 164 percent more than the same period last year. Sources said that MCC (Preventive) attained the growth of 25 percent mainly due to controlling of pilferage of customs duty on the betel leaves at the AFU.
FTO order for safety of taxpayers data falls on deaf ears iSLaMaBaD
CuSTOMS TODAY REPORT www.customstoday.com
he Federal Board of revenue failed to implement order of the Federal Tax Ombudsman (FTO) regarding devising a secure automated system and conducting third party probe into vulnerabilities of the FBr e-system. The order was issued to ensure protection of confidential and classified data of the taxpayers. as per details, the former FTO issued the orders on a public interest complaint filed by a Lahore-based tax lawyer Waheed Shahzad Butt. in it observation, the FTO directed the FBr to conduct a thorough investigation through a credible third party in relation to the vulnerabilities of the FBr's e-system. The FTO stated that in the complaint had produced proof that how an E-intermediary (Ei) can play with the secret data of taxpayers. it is to be noted that Waheed Shahzad Butt to highlight easy access to taxpayers' data, filed the Withholding Tax statements of a government
— Exlusive Customs Today photo
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department successfully and attached these documents to his complaint to the FTO office. The complainant alleged maladministration on the part of the FBr involving negligence and incompetence in ensuring safety of taxpayers' confidential and classified data. he maintained that any Ei can show a taxpayer as his client in the FBr's e-system even without knowing his e-mail iD or mobile number, thereby breaking into the confidential data possession by the FBr. Both the complainant and the relevant FBr officials including cEO Pral were called for a hearing. The cEO Pral, Manager Pral along with a representative of the FBr attended the proceedings. The complainant then demonstrated how the withholding tax statement of a government department could be successfully filed. he filed the withholding statements of EcP, FPSc, cabinet Division and FTO Secretariat. With permission, he successfully manipulated the FBr's e-system to show himself as an employee of FTO Secretariat who was paid a salary of rs25 million, with income tax deducted on his salary at rs5 million. if that was not enough indictment of the
FBr's e-system, he filed a return of income of FTO Office for tax year 2010 with the Electronic Document Number (EDN) 31531105 showing an income of rs100 billion, with rs25 billion as tax paid by the FTO Secretariat and rs 99 (only) as refund due. The complainant remarked that if FBr data was any guide for the purposes of verification of income declared in the tax returns and tax paid, the FTO Secretariat was the 'highest tax-paying institution' that had deposited rs25 billion income tax in tax year 2010. The departmental representatives (Drs) could not offer any plausible, justifiable defence against the evidence provided by the complainant. They could not belie the withholding statements and tax returns of FTO Secretariat, among others. FBr appears to have badly failed to devise a secure automated online system to safeguard confidential and classified data of taxpayers. it is to be noted that the FBr has decided to place new safeguards in the database of taxpayers to ensure security of sensitive, confidential and classified data by enhancing existing security features in the electronic systems maintained by the FBr.
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iSLaMaBaD
FAIZA ISRAR
www.customstoday.com
T CONVERSE TO THESE EFFORTS, THE GOVERNMENT HAS ISSUED MORE THAN
59 SROs IN THE CURRENT FINANCIAL YEAR INCLUDING
15 SROs
RELATED TO INCOME TAX, 25 TO SALES TAX AND
19 SROs PERTAINING TO FED
he purpose behind issuance of Statutory Regulatory Orders (SROs) has been to establish a particular industry as some of the regulatory orders are speciNic to certain industry while others are generally aimed at enhancing import of speciNic items. Currently the government is contemplating all the previously issued SROs and Finance Minister Ishaq Dar has been briefed on various options to amend to or abolish the SROs. Converse to these efforts, the government has issued more than 59 SROs in the current Ninancial year including 15 SROs related to income tax, 25 to sales tax and 19 SROs pertaining to FED. Federal Board of Revenue (Tariff and Trade) Chief Sarfraz Ahmed Warriach gave this account while talking exclusively with Customs Today on the reconsideration of SROs. He argued that there might be some obvious reasons for and a need to amend these SROs. He elaborated that Nirstly these SROs were issued to establish a certain industry and after establishment withdrawal of these concessionary regimes was a legal obligation which unfortunately could never be done for one reason or another. Secondly, the ‘lethargy’ to withdraw this protection given to industry resulted in low quality production, shunning room for improvement and innovation which, otherwise, is prerequisite for competition in the market,” Sarfraz Warriach pointed out. He said that thirdly international competitors and world trade bodies like world trade organization also raised objections that there should be level playing Nield for everyone as such concessions offered to speciNic industry barred competitors entry into this (speciNic) sector besides leaving little or no more room for the manu-
facturing of such quality products, resulting in the cost of production. Sarfraz Warriach also argued that more often than not, lenders stressed withdrawal of subsidies offered on a product or to industry for granting a loan as economies like Pakistan survived on loans due to the existence of huge income and expenditure gulf. “The international donors like IMF/WB/ADB, whenever provide loans, start hectic monitoring and force the borrowing economies to reduce amnesties and subsidies so that sufNicient amount of taxes could be collected to ensure that instalments of (the loans) are pay back accordingly,” he added and cited Hillary Clinton to have categorically said during her visit to Pakistan that American taxpayers always demand why the government (American) doled out their hard-earned tax money to countries whose people did not pay taxes and that the American government was answerable them.” Tariff and Trade Chief Sarfraz Ahmed Warraich said that a high level committee had been working under the chairmanship of Finance Minister Ishaq Dar and representing all the ministries and departments concerned to reconsider critically and make a way out of these SROs. About decline in revenue collection, especially customs related, he said that due to uncertainty in the value of dollar the businessmen were not ready to take risk and of total $45 billion capital only 5 percent capital was operational. Secondly energy crisis has also dealt a blow to the purchasing power of the masses. At this same time high cost of energy has directly affected the businesses and there is very low demand for Ninished goods in addition to a low demand for import of raw material due to energy crisis,” he detailed.
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— Exlusive Customs Today photo
THE INTERNATIONAL DONORS LIKE IMF/WB/ADB, WHENEVER PROVIDE LOANS, START HECTIC MONITORING AND FORCE THE BORROWING ECONOMIES TO REDUCE AMNESTIES AND SUBSIDIES SO THAT SUFFICIENT AMOUNT OF TAXES COULD BE COLLECTED TO ENSURE THAT INSTALMENTS OF (THE LOANS) ARE PAY BACK ACCORDINGLY
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Founder & chairman Zulfiqar Ali 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
Making tax details public
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t is a welcoming step of democratically elected PML (N) led regime that it allows FBr to publish national tax directory of all taxpayers second time in recent history of the country till March 31, 2014. in the wake of dwindling tax-to-GDP ratio and narrowed tax base, now the time has come when precedent will set from top of the country as the government will publish tax directory of parliamentarians at first stage and then it will publish tax details of all taxpayers after pause of one and a half month. Earlier, the government had also granted permission to the country’s tax managers to publish tax directory of parliamentarians till mid of the next month. Going one step ahead, now the government also took a very positive decision to publish national tax directory of about 0.7 million taxpayers by March 31, 2014. in the recent known history of FBr, the tax authorities had published tax directory during the era of caretaker Prime Minister Moeen Qureshi but afterwards it was considered as no-go area by different political as well as dictatorial regimes to abandon this practice by using different excuses. For instance, an excuse was always presented against the demand of publishing tax directory that the tax laws do not permit FBr to do so. On the name of secrecy, it was forbidden for the public to get information about the payment of taxes of whom they elected to rule over them without knowing that how much they were contributing to the national kitty. The tax frauds in the western world is considered as the most heinous crime that could result into loosing important portfolio but in Pakistan it was never considered as major crime in recent history. With major contribution of the media, the payment of taxes has now become important topic of debate in this country. Now it is imperative for both political leaders as well as other segments of the society to ascertain by sharing information how much they are contributing to national kitty by paying their due tax and liabilities. The publishing of tax directory will enable the nation to get information of taxes being paid by the ruling elite. it would also apprise the masses about payment of taxes by all influential segments of the society. in a country of more than 180 million population, the number of return filers is dismally low as only 0.7 million are discharging their national duty. Even less than one percent of the population are return filers so in this scenario there is need to penalize as well as appreciate on the basis of contribution one is making for paying his or her due taxes. according to FBr’s own data, there are more than 3.5 million National Tax Number (NTN) holders in the country of which only 0.7 million filed their returns indicating that around 2.8 million NTN holders are falling into category of non-filers. Now FBr is considering sending them notices and giving them deadline of one month to file their returns or face the music of ex-party assessment after exhausting all legal procedures and requirements.
Pak-India trade talks iSLaMaBaD
SM HAIDER
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fter pause of several months, Pakistan and India have resumed trade talks at secretary level in New Delhi in order to promote bilateral trade relations between two neighboring countries. The two arch-rivals which publicly declared their ability to become part of nuclear club during the decade of 90s have been left without no other option but to normalize their bilateral relations in order to ensure peace and tranquility in the South Asian region. The policy of looking towards East is gaining impetus all around the globe and Indo-Pak can only exploit the existing potential if both decide joining hands to transform themselves into hub of economic activities instead of treating each other as adversaries in the context of heavy baggage on the basis of experiences of the past. After restoring peace and
joining hands in war against terror by both countries, Pakistan and India can explore close cooperation in areas of bilateral trade and cooperation in energy sector that can translate into providing benefits to both the countries. India had granted Most Favored Nation (MFN) status to Pakistan but Islamabad had not far reciprocated on this front. But Pakistani side had always complained that despite extending MFN status, New Delhi used different kinds of tariff as well as non tariff barriers to block Pakistan’s exports to India in recent past so granting of MFN did not help Islamabad boosting its exports in quantum leap. On the issue of granting MFN status to India, the last PPP led regime made apparent progress and left almost 1100 items which were not yet allowed while remaining 6600 tariff lines were allowed in trading with India. As political transition is in the final stages in India and after the new leadership assumes its
charge it is expected that both the countries will find ways and means to enhance bilateral trade relations. The import of electricity from India is heading towards advanced stage with the financial and technical assistance of the World Bank. The Planning Commission, which is preparing salient features of next five year plan, has estimated that the country’s GDP growth could touch 7 percent mark in next five years because huge untapped potential existed in this economy. Pakistan’s industry was running at 50 percent capacity and if power situation improved and industry achieved level of its operation in the range of 70 percent the country’s economic activities would be restored and GDP would be pushed up by 1 to 2 percent on per annum basis. According to the WB assessment, the electricity trade between Pakistan and India will be completed in next two years. India and Pakistan are working on energy cooperation as there is no regional energy sharing
mechanism in this region and it is the only way forward to end crisis. Pakistan had placed formal request to World Bank (WB) for providing multi-million dollar assistance for importing 500MW electricity from India. Considering watershed developments between India and Pakistan, the WB official said Pak industrial load shedding resulted into loss of 400,000 jobs. Sri Lanka is the only country in the South Asian region with a surplus in electricity and all other countries are energy deficit but there is no energy trade scheme. Pakistan and Afghanistan can import electricity from Central Asian states for lowering down power shortages in their countries. Feasibility studies have confirmed technical and economic viability of exporting summer time electricity surpluses from Tajikistan and Kyrgyzstan from existing power plants to relieve power shortages in Pakistan and Afghanistan.
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Transporters irritated over road users’ tax suggestions
KARACHI: Transporters have showed discontent over the recommendation that road users’ tax shall be collected through additional levies on CNG, diesel and petroleum goods. President, Karachi Transport Action Committee, Mohammad Ashraf Banglori has said that people including vehicle owners and transporters were already paying wide range of taxes including road users as for example in the form of toll taxes. He said that rather efficiency of the departments concerned must improve and the process of roads users' tax must be streamlined.
KARACHI: a group photo of President of Pakistan, Mamnoon hussain, S.M.Muneer, Mian Zahid hussain, khalid Tawab, S. M. Naseer, Gulzar Feroz and others.
— Exclusive Customs Today photos
NEW DELHI: commerce Secretary Qasim M Niaz shaking hands with his indian counterpart S.r. rao.
KARACHI: Sindh chief Minister Qaim ali Shah holding a meeting with Federal Minister for Planning and Development ahsan iqbal at New Secretariat.
Forex limit for passengers reduced; dollar as currency for AfPak exports decided iSLaMaBaD
CuSTOMS TODAY REPORT www.customstoday.com
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high-level meeting chaired by Finance Minister Senator Ishaq Dar, after weigh up pros and cons, has decided to shift payments against trade between Pakistan and Afghanistan to dollar from Pak Rupee with effect from March 17, 2014. The meeting was held to review scenario of trade between Pakistan and Afghanistan and efforts being made to boost it. On the occasion, it was decided to allow a two months period to exporters to serve their existing contracts. The participants were informed that Pakistan export to Afghanistan amounted to $2.3 billion during 2012-13 which included trade undertaken in Pak Rupee, making up about 50 percent of the total exports.
It is to be noted that the decision has been taken in view of the fact that normal banking channels are now available for trade transactions between the two countries. During the meeting, the KCCI President apprised the Finance Minister of difNiculties confronted by exporters in utilizing the route of Ghulam Khan which is restricted for the export of Cement. He also stressed the need for allowing exports of other items through this route as well. On the occasion, the Commerce Ministry and the FBR supported the suggestion and the Finance Minister decided to allow export of all other items from Ghulam Khan. The minster expressed his hope that this step would help bring in development in the areas and would stimulate growth of exports to Afghanistan. The decision is expected to help earn foreign exchange to the tune of $1 billion besides beneNitting the business community and people of Khyber Pakhtunkhwa greatly.
The limit of $5,000 per person per trip is applicable to passengers, carrying currency notes
Meanwhile, the Finance Minister reviewed the limit for carrying currency notes during travelling aboard during a meeting with the representatives of the State Bank of Pakistan. On the occasion, the SBP governor raised the issue that the present limit of $10,000 for each person per trip was being misused and it was decided that the limit should be reduced to $5,000 to check this tendency. Each child up to 12 years will be entitled to 50% allowance while an infant will be permitted to 25%. During the meeting Ishaq Dar emphasized that the limit of $5,000 or equivalent per person per trip was applicable to passengers who were carrying currency notes. Finance Secretary Dr Waqar Masood, Commerce Secretary Qasim Muhammad Niaz, FBR Chairman Tariq Bajwa, Adviser to Finance Rana Asad Amin, SBP Governor Yaseen Anwar and Khyber Pakhtunkhwa Chamber of Commerce President Zahid Ullah Shinwari attended the meeting.
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FbR announces exemptions for govts, diplomats, privileged persons
ISLAMABAD: Federal Board of Revenue has announced exemptions for federal and provincial governments, foreign diplomats, diplomatic missions and individuals entitled to privileges under the United Nations (Privileges and Immunities) Act through an SRO 17(I)/2014. Sources said that exemptions are announced on payment of 10 percent withholding tax on functions in hotels/marriage halls and 5 percent tax on fee paid to educational institutions in Pakistan.
Thriving cross-border smuggling
Discrepancy detected in past 2 years gold import
authorities must rise to the challenge iSLaMaBaD
irectorate General of intelligence and investigation (DGi&i)-inland revenue (ir), karachi has detected grave inconsistencies in import of gold worth more than rs 9 billion under Entrustment Scheme through the past two years. according to sources, DGi&i (ir) has inquired into alleged abuse of the Entrustment Scheme by gold exporters where bulk quantity of gold/jewellery was imported without fulfilling gold import conditions required vide SrO 266 (i)/2001 issued by commerce Ministry on May 07, 2001. Sources said that the objective of the mentioned SrO was to broaden the base of Pakistani exports and provide opportunity to Pakistani artisans to sell jewellery abroad. however, the scheme allowing 80 percent of the value of jewellery set against duty-free import of gold within eight months was being misused with no benefit to the country. in this regard a ban of 30 days, which has now been extended to four months, was imposed on gold imports, due to serious apprehensions. They said that the ban was imposed by Economic coordination council following reports that the schemes for duty-free import of gold namely, 'Entrustment' and 'Self consignment,' were being misused by some dishonest elements as the dutyfree gold was being smuggled to neighbouring country. reacting to it, the DGi&i (ir) analysed the records of gold imports for the period July 2011 to June 2013, which revealed that huge amounts of gold/jewellery were imported without paying normal import tariffs and duties under the said SrO. The export data has depicted a different picture, showing that no gold export had been made during the same period. Sources said that DGi&i (ir) had so far detected two cases where importers had availed of the benefits of Entrustment Scheme but failed to contribute to the national exchequer. They said two importers had separately imported gold worth rs 4.015 billion and rs 5.249 billion, respectively during July 2011 to June 2013, and added that both importers had violated the said SrO. —CT Report
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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: letters@customstoday.com.pk
CuSTOMS TODAY REPORT www.customstoday.com
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he menace of smuggling continues to bleed the national economy without let and hindrance while the authorities concerned have failed to rise to the challenge and adopted tangible measures to check its operation. Moreover, the dream of creation of a dedicated Customs Border Force (CBF) to check smuggling on borders with Afghanistan and Iran could not be materialized so far although it has been part of the FBR anti-smuggling strategy for the last few years. It is to be noted that in the past former FBR chairman Ali Arshad Hakeem had proposed the establishment of a new Border Force during the visit of the then PM Yousuf Raza Gilani to FBR House. He also
proposed that new initiatives by underling the setting up of border surveillance infrastructure and 10,000-strong Border Force to effectively curb cross-border smuggling. The same proposal was also advocated by senior economist Dr Hafeez A Pasha during a recent workshop titled “Study to design the revamped/reformed FBR strategy.” The commission constituted by the Supreme Court of Pakistan on ''smuggling of arms and ammunition'' also recommended that the government will appoint a Committee of ofNicers of Pakistan Customs to conduct need assessment and recommend ways and means to raise Customs Force fully trained and equipped with all wherewithal including speedboats, surveillance crafts, communication network and arms and ammunition. Similarly recommendations made in the international workshop on "Accelerating Tax Reforms" organized in collaboration with the World Bank on February 23, 2013, former FBR Member Customs
and Director General Intelligence and Investigation Customs Muhammad Riaz made recommendations on behalf of Group-4 Benchmarking Customs and Border Management. He recommended the establishment of a customs border ofNice to comprehensively cover borders, and create new customs areas at Torkhum and Chaman. Under the anti-smuggling strategy, a well-trained force will ensure effective law enforcement in the border areas of Balochistan as well as KPK and along the Sindh coastal belt. Similarly addition to the new force, Customs Border Patrolling Posts can be established. However, until the new force is not set up, the FBR has proposed the setting up of joint checkposts of Pakistan Customs and the law enforcement agencies to conduct antismuggling activities on borders. Overall monitoring of campaign against the smuggled vehicles and contraband goods will be carried out by the Directorate General I&I-FBR.
The dream of creation of a CbF to check smuggling on borders with Afghanistan and Iran could not be materialized so far
uS embassy seeks briefing on revenue matters
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ederal Board of revenue chairman Tariq Bajwa has been requested by the United States embassy to brief the embassy officials on the 2013-14 revenue collection position besides other development and revenue-related matters. US embassy has written a letter to FBr chairman in this regard. according to the sources, the Economic Section of the Embassy of the United States of america, islamabad has requested a meeting of Economic counsellor Sarah Beran and Treasury attaché irfan Vaid at United States Embassy, islamabad, with FBr chairman Tariq Bajwa during next week. The meeting will provide them an opportunity to discuss the second quarter (October-December) tax revenue developments by Federal Board of revenue and the general developments on this front, US embassy letter stated. —CT Report
Importers seek removal of impediments at AFu To,
The Chairman FBR, Tariq Bajwa, Islamabad Respected Sir,
I would like to draw your attention towards the various issues being faced by importers and customs agents at the Air Freight Unit (AFU), Jinnah International Airport, as their problems are being multiplied with every passing day due to the pathetic performance of officials at the Examination Hall. Importers, already paying hefty amount as customs duty and other taxes, are compelled to pay heavy amount as godown rent due to the dismal performance of examination officers and appraisers. I would like to inform you that importers
and customs agents are facing eight to ten days delay in clearance of their consignments by Customs officials at AFU, while terminal operators are also charging high godown rates from importers. Furthermore, there is another matter of deep concern that pharmaceuticals and other duty-free vaccinations including lifesaving drugs are kept in godowns of the terminals for several days without any proper precautionary measures and importers of pharmaceuticals pay millions of rupees godown rent to the terminal operators. I request you to take appropriate and effective action in this regard in order to facilitate importers. Yours truly, Nadeem Kamil, Karachi
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Attempt of drugs smuggling thwarted at Karachi airport
KARACHI: Pakistan Customs Drug Enforcement Cell at Jinnah International Airport thwarted an attempt to smuggle 3200 grams of heroin out of Pakistan to UK. Customs Drug Enforcement Cell’s staff intercepted a Pakistan born British passenger Zahid Maqsood when he reached airport to board Emirates Airlines flight EK-601 for Birmingham via Dubai. When the passenger Zahid could not furnish satisfactory replies to Customs questioning, his baggage comprising two hard top suitcases was subjected to examination.
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