Tue july 29 mon august 11, 2014 by Customs Today

Daily on www.customstoday.com

Find us on

pAKISTAN’S FIRST INDepTH NewSpApeR oN CUSToMS

Vol 2 Issue No. 28-29

Karachi, Tue July 29 - Mon August 11, 2014

weekly

Regd. No, MC-1381

Price Rs. 50.00

BRINgINg BACK $200B

Talks to bring back $200 billion stashed in banks in Switzerland and belonged to Pakistan will begin in the current month, says Ishaq Dar. | See pAge 03 | SeTTINg Up CoMMITTee

Speculations, guess and contacts galore Abdul Rauf Chaudhry issued a notiﬁcation of new 10-member advisory committee with speciﬁed jurisdiction to perform duties of FTO. | See pAge 09 |

Race for FBR chief picks up There are many names under consideration from the FBR but chances of new Chief from outside the board are also at hand

eDUCATINg TAxpAyeRS ISLAMABAD

MUHAMMAD FAIZAN www.customstoday.com

Member FATE Ms. Riﬀat Shaheen conducted a one-day seminar on budgetary changes brought in through Finance Act 2014 at FBR House. | See pAge 10 | SeIZINg SMUggleD gooDS

Customs I&I Karachi and Pakistan Rangers in a joint operation recovered huge quantity of smuggled goods worth Rs 66 million. | See pAge 04 |

he race for the top slot of FBR chairman picked up following the government decision to appoint FBR Chairman Tariq Bajwa as the Federal Finance Secretary, sources told Customs Today. Sources said that Tariq Bajwa will replace incumbent Finance Secretary Waqar Masood in the middle of August. Following the development, the federal government has also started contemplating several names to Oill the post of FBR chairman. According to sources, top of the list are the names of two members of FBR including Member Inland Revenue Policy Shahid Hussain Asad and Member Admin Shahid Hussain Jatoi. However, the list includes the names of other members as well. As per sources in the Finance Ministry, consent of international Oinancial institutions has also been sought and they have reportedly reposed conOidence in Tariq Bajwa. According to sources, incumbent FBR Chairman Tariq Bajwa was expected to hold meetings with heads and representatives of different Oinancial institutions in the US. Reportedly Bajwa will also be part of the team of Finance Minister Ishaq Dar scheduled to hold discussions with IMF mission.

It is to be noted that Tariq Bajwa is being considered one of the closest companions of Finance Minister Ishaq Dar and during his posting in Punjab he had been working closely with the Finance Minister. However, sources disclosed that Bajwa is very close to Punjab CM Shahbaz Sharif more than Ishaq Dar. That’s why Shahbaz Sharif’s role remains very crucial in the appointments of Bajwa at the federal level. Although it is a fact that Tariq Bajwa is an able and devoted civil servant, he was made the FBR chairman by giving him edge over other senior FBR members. Sources said that if the process of naming new FBR chairman gets delayed, FBR Member Inland Revenue Shahid Hussain Asad would be acting as stand-in chairman during the period. Meanwhile, the race for the post of chairman has been taking curious turns with the senior ofOicers throwing their hats into the ring. After the FBR Chairman Tariq Bajwa left his ofOice few days ago on leave, there were huge curiosity that “who will be the next FBR Chairman” if Mr Bajwa will be transferred to other department. There are many names under consideration from the FBR but chances of new Chief from outside the board are also at hand. FBR Senior Member Inland Revenue Policy Shahid Hussain Asad who has been acting as stand-in FBR Chairman, is a strong candidate for the post of Chairman as he enjoys the favour of Tariq Bajwa and Finance Minister Ishaq Dar. Along many others, FBR

Shahid Hussain Asad is a strong candidate for the post. Ashraf Khan is also making eﬀorts to make to the oﬃce of FBR chairman

Member IR (Operations) Muhammad Ashraf Khan has also been making efforts to make to the ofOice of the FBR chairman. Interestingly, the PM Secretariat, which has the authority to inOluence the appointment of chairman, is not supporting any of these candidates and rumour has it that they want the new chairman from outside the FBR. Who will be the new FBR chairman is anyone’s guess, but the speculations will die down with the appointment of new FBR chairman as the post is very important and the government may take some time to make an appropriate decision. It is to be noted that Customs Today has already mentioned in its story published three weeks ago about Shahid Hussain Asad’s taking charge as acting FBR chairman during Tariq Bajwa’s visit to the US. Now, the FBR notiOication regarding appointment of Shahid Hussain Asad as stand-in chairman till August 14, vindicated the news. As per Customs Today correspondent, Shahid Hussain Asad is also the strongest candidate to become the next FBR chairman. This long duration of almost one month of look-after charge leads us to believe that the government has given the time period to Shahid Hussain Asad to get settled at this key position of the revenue body to eventually hold this post after Tariq Bajwa’s appointment as Finance Secretary in the middle of August.

www.customstoday.com

NATIONAL

JULY 29 - AUGUST 11, 2014

KTBA proposes reforms to “wealth statement form”

KARACHI: The Karachi Tax Bar Association (KTBA) in its recent move has presented a proposal to the Federal Board of Revenue (FBR) regarding the “Wealth Statement Form”. The proposal pertaining Agricultural land and other property requested that the wealth statement form should be simple for taxpayers and practitioners so that they could communicate in better way for required information adding that in previous form most of required fields were neither not familiar nor available in some of the provinces and cities of Pakistan.

Smuggling scandal

Court extends bail of Hamdani, Shakirullah ustoms court has extended anticipatory bail granted toTCS Chief Executive Saqib Hamdani and Smart Zone Company’s owner Shakirullah till August 6. Both were accused of allegedly involved in smuggling of contrabands undercover of Afghan transit trade. On the other hand, Customs Intelligence Deputy Director Shahid Jan has decided to broaden investigation circle to other workers ofThe Courier Services (TCS). It is revealed in investigation that smuggled duty free contrabands under cover of Afghan transit trade was unloaded at warehouse ofTCS before its dispatch to Afghanistan that was the reason why stickers of AfghanTransitTrade were not removed in urgency. Customs authorities also got the copy of agreement betweenTCS and Smart Zone Company, which was dually signed by Saqib Hamdani and Shakirullah. On their hearing, Customs judge was on leave so the culprits got respite till August 6 for their appearance before the court. In their statementTCS Chief executive Saqib Hamdani and Manager Logistic Ghazanfar has denied allegations and said thatTCS has nothing to do with smuggling, as it only provided its warehouse for storage. On the other hand Smart Zone Company owner Shakirullah in his statement claimed that goods were not smuggled rather they were imported in a legal way. But when Customs oﬃcials asked him to provide customs with any prove he failed to do so and also could not defend why goods worth billions bearing Afghan Transit stickers were present in TCS warehouse. Customs oﬃcials had decided to ask court for Physical remand of culprits on their next hearing in August. —CT Report

FBR assesses legal provisions of budget ISLAMABAD

MUHAMMAD ARSHAD www.customstoday.com

he Federal Board of Revenue (FBR) has started discussions on impacts of legal provisions presented in the budget for FY 2014-15. Government introduces legal provisions in the federal budget to facilitate FBR to meet the revenue collection target every year and then a process of review of impacts of legal provisions also continues throughout the year. A meeting in this regard was held to discuss and assess the possible impacts of legal provisions regarding tax, income tax and customs duty collection. Sources said that field officers hailed from twin cities Islamabad and Rawalpindi along with other relevant staff participated in the meeting.The participants of the meeting shared their experiences as well as feedback from tax payers about legal provisions. Such meetings to review the impacts of legal provisions will also be held in other regional headquarters in coming days. —CT Report

TCS ﬁnds its scapegoat

ISLAMABAD

CUSToMS ToDAy RepoRT www.customstoday.com

he Courier Service (TCS) administration dismissed its Chief Executive Saqib Hamdani and Islamabad Regional Manager Logistics Ghazanfar Gul amid the recent smuggling scandal. As per details, TCS has fired Saqib Hamdani and Ghazanfar Gul from their posts putting all re-

sponsibility of smuggling goods upon their shoulder. Earlier, it was reported that TCS with collaboration of Smart Zone Company had allegedly imported electronic gadgets worth millions under Afghan Transit cover without paying duty. Directorate General Customs Intelligence and Investigation (DG I&I) Rawalpindi had lodged FIR which later pushed TCS to sack its top employees to save its name. The three culprits Chief executive Saqib Hamdani, Regional Manager Ghazanfar Gul and Owner of Smart Zone Company Shakirullah

Rawalpindi Customs Intelligence lodged FIR which pushed TCS to sack its top employees to save its name

FBRseeksFinanceMinistrytotakeADRSdown ISLAMABAD

CUSToMS ToDAy RepoRT www.customstoday.com

BR asked the Finance Ministry to take down Alternative Dispute Resolution System (ADRS) due to its poor performance. The Alternate Dispute Resolution (ADRS) offers companies an opportunity to apply full force of the law efOiciently and effectively. Whereas the system has no option but to apply justice through the natural course of a blocked court schedule, a mediator is mutually agreed upon by all the parties involved to interact with one another and hammer out a solution to the problem which is recognized by the law under Section 89 A and order X

Rule 1A of the CPC. A Mediator is an impartial trained professional to help disputed parties Oind solutions to their issues. The Mediator is skilled in unlocking these negotiations, keeping everyone focused on Oinding a mutually agreeable solution. The FBR had refused all decision made under ADRS over the past two years and decided to request removal of the law. ADRS was made part of the Finance Bill during Gen Musharraf’s regime. The main reason behind the FBR refusal to implement the ADRS decisions, was that people who had been facing legal proceedings with commissioner or at other forums of the board, when appealed in ADRS their cases are froze in FBR. Moreover, if decision of ADRS declares decision against the applicant he/she enjoys

the right to resume his appeal in forums of FBR. Another drawback of ADRS is that it has been consisted of three members, one from FBR and two from chamber of commerce to resolve disputes after mutual consultation among the committee members. As two members are from business community they try to favour their business colleagues that’s why all decision made by ADRS were in favour of applicant and not the FBR. The promulgation of the law was aimed at curbing corruption and decreasing legal disputes among the business community. However, now The FBR has decided to request the Finance Ministry to take the dispensation down because the system has failed to bring about the desired results.

appeared in front of DG I&I and record personal statements following their bail before arrest. Rawalpindi Director Zafar, Additional Director Muhammad Saleem along with Deputy Director Shahid Jan investigated the culprits. A source from DG I&I told that the accused have failed to defend them during investigation but it contributes to the investigations progress. On the other hand Customs official has been conducting raids in search of other workers involved in the smuggling.

Customs issues valuation ruling of Methylene Chloride he Directorate General of Customs Valuation has issued the Customs values of Methylene Chloride through Valuation Ruling No.679/2014 under Section 25-A of the Customs Act, 1969. The said Valuation Ruling has superseded the previous Valuation Ruling No.629 regarding the Customs values of Methylene Chloride. According to the details, the Customs values of Methylene Chloride having PCT Code 2903.1200 and proposed PCT for WeBOC 2903.1200.1000, UK origin has ﬁxed at US$665per MT. The Customs values of Methylene Chloride having PCT Code 2903.1200 and proposed PCT for WeBOC 2903.1200.1100, Japan origin has ﬁxed at US$620per MT. —CT Report

www.customstoday.com

NATIONAL 03

JULY 29 - AUGUST 11, 2014

Customs intelligence auctions vehicles, other goods

LAHORE: Customs Intelligence Multan auctioned 14 vehicles and some other articles in Rs 4 million. The auction held at office of Customs Intelligence Khanewal. Additional Director Customs Intelligence Nisar Ahmed and Auctioner Muhammad Akram supervised the process of auction. On this occasion, 14 vehicles and some other articles were auctioned against Rs 4 million.

Parleys for $200b stashed in Swiss banks in the oﬃng ISLAMBAD

CUSToMS ToDAy RepoRT www.customstoday.com

Containers’ grounding

KICT, pICT use delaying tactics to harass importers KARACHI

SoHAIl RAB KHAN

— Exclusive Customs Today photo

www.customstoday.com

inance Minister Ishaq Dar said talks to bring back $200 billion“what he said”belonging to Pakistan and stashed in banks in Switzerland will begin in the current month. In a statement issued here, the federal minister pointed out that the talks would be held in several phases and it could take three to four years to bring the money back to the country. He claimed that when the PMLNawaz (PML-N) took power after May 11 general elections, the economic situation was fragile, adding that foreign monetary institutions had predicted that Pakistan would be bankrupt in 2014. Dar said that the government was performing well and had put back the national economy on track. “We have set the pace for progress and soon Pakistan will become a strong economy,”he added.

mporters and Customs agents have vehemently criticized the delaying tactics used by KICT and PICT staffers in grounding of the containers for examination. Sharing their views with Customs Today, importers and Customs agents held unskilled labour at KICT responsible for delay in grounding of the containers for examination. “Importers and Customs agents have been facing lots of problems due to unprofessional attitude of KICT workers in grounding of their containers for examination,” Haji Adreese, an importer lamented. “The grounding of the containers at examination area is being delayed for 9 to 10 days and importers are compelled to pay Rs3000 per day as detention charges due to this delay,” he added. Idrees further said that the containers left unattended for 3 to 4 days and no one of the terminal ofOicials bothered to care about it. “Customs ofOicials use delaying tactics and give lame excuses like shortage of labour and space while grounding the containers for examination,” Shujaat Ahmed, an importer informed Customs Today. Kamran Akhtar, another importer, told that the consignees face thousands of rupees loss because of detention of containers even extending full cooperation with ofOicials of Pakistan Customs. He said food items in stuck consignments get perished due to delay in clearance, causing huge

loss to importers. A Customs agent namely Yasir Iqbal told this scribe that the importers even pay Rs30,000 detention charges within 10 days which increases cost of doing business. He demanded of the authorities concerned to induct skilled labour at terminals for handling the consignments. “There should be trained workers at KICT to properly tackle the trafOic at the terminal in an organized way,” he added. Nawaz Ahmed, an importer while sharing his views with Customs Today alleged that the terminal staffers are involved in corruption and mal-practicing which causes complications in examination process. “The importers are compelled to pay heavy amount in

terms of demurrage and detention charges”, he added. Another importer said that the grounding has become an issue at KICT due to labour staff at the terminal demanding speed money. Muhammad Amin, a clearing agent said that they were facing difOiculties in examination, adding that lack of space was also creating hurdles at KICT. He was of the view that the Pakistan Customs ofOicers were cooperating with the importers and Customs agents for redressal their grievances. On the other hand, Customs authorities assured importers to leave no stone unturned to solve their problems. “OfOicers found in causing deliberate delay in examination would be punished,” they maintained.

When contacted Pakistan Customs ofOicial, Assistant Collector Usman Tariq said that recent spell of monsoon has affected the examination process at KICT otherwise the examination process took 6-8 hours in normal routine. He admitted that the terminal operator caused delay in grounding of the containers due to lack of space at the designated area of examination. Assistant Collector further said that the absence of proper lighting system at stacking area caused further delay in examination process. He informed this scribe that Pakistan Customs conducted 200 examinations in a day and cleared them for gate-out, adding that grid-lock would be eliminated in 5 to 6 days. Assistant Collector further said that the authorities of Pakistan Customs has already held meetings with all stakeholders including ofOice-bearers of KCAA, KCCI, FPCCI and others in this regard. Another Assistant Collector at KICT Marium Khanji while sharing her views with Customs Today said that they have been monitoring work distribution and performance of workers at KICT on regular basis which also resulted into deputation of 3 ofOicers of Pakistan Customs recently. “The things at Customs end are working smoothly while the backlog is created due to unprecedented arrival of shipments”, he added. She further said that the shortage of labour was prevailing at KICT. She was of the view that the change in labour after 14 to 15 years put an effect in grounding the consignments, adding that the things would be managed shortly.

www.customstoday.com

NATIONAL

JULY 29 - AUGUST 11, 2014

lahore Customs seizes two non-customs paid cars

LAHORE: Anti-smuggling department of Pakistan Customs has seized 2 Toyota Corolla worth Rs 2.4 million near Sabzi Mandi Lahore on duty evasion. As per details, anti-smuggling scout raided a parking near Sabzi Mandi and confiscated 2 smuggled Toyota Corollas with registration IDs LEA/4384 and AAH/945. Pakistan Customs has lodged a FIR against the culprits and started investigations.

Customs holds liquor of Aussie HC slamabad Dry Port Assistant Collector has refused to clear a container of liquors imported for Australian High Commissioner (HC), held on incomplete documents. As per details, Australian High Commission has imported liquors for its High Commissioner through Islamabad dry port but on examination customs found that documents necessary for duty free import were not complete. The Ambassadors have privileged to import many goods including liquors without paying any duty, for which Ministry of Foreign Affairs issued a certificate of approval. One copy of which has to be submitted with Customs on arrival of consignment. In said case High commission has failed to provide the certificate copy to Customs officials in examination process. The certificate by Ministry of Foreign Affairs mentioned quantity and other details of goods which were being imported. Australian High Commission then contacted to high authorities of customs who asked Islamabad dry port AC to release the container. —CT Report

Stay order againstTCP officials demotion he Sindh High Court (SHC) has issued stay order against the demotion of 10 officers and 29 employees ofTrading Corporation of Pakistan (TCP) here on the other day. The TCP sources informed Customs Today that those 39 TCP’s officials were demoted by the illegally formed TCP board of directors. The sources further said that the Sindh High Court (SHC) in its verdict also mentioned that the formation of the board of directors was illegal and a violation of the Corporate Governance Rules, 2013. The SHC has adjourned the hearing of the case till August 20, 2014. —CT Report

Customs seizes 39 tons of iron sheets ustoms anti-smuggling unit seized 39 tons of iron sheets worth Rs 5 million in a raid near Multan Road. A Source informed CustomsToday that the iron sheet was being sold in local market when anti-smuggling unit caught the culprits as iron sheet were smuggled without paying Rs 3 million duty. Moreover, he added that iron sheets were coming from Karachi and on a tip customs authorities asked for documents of clearance, which they failed to produce. “The smugglers and peddlers were trying to take the advantage of eid as these days activities in almost in all departments come to a halt”he said. However, the accused failed in their attempt to smuggle this huge quantity of the iron sheets. Later, Customs authorities lodged an FIR and further investigations were in progress. —CT Report

Customsseizescigarettes, gutka,sheeshaworthRs66m

BR has asked Pakistan Customs to recover tax worth millions of rupees from M/s Lucky Cement Limited as company found guilty of tax evasion in duty and tax remission for exports (DTRE) research report. The sources informed Customs Today that the FBR authorities during the DTRE research study had observed that facility granted to M/s Lucky Cement Limited was not admissible on the following grounds mentioned in its profile and asked Pakistan Customs to recover evaded duty/taxes from M/s Lucky Cement Limited. Subsequently, the team of duty and tax remission for exports (DTRE) research study informed Pakistan Customs that the applicant (M/s Lucky Cement Limited) enjoyed inadmissible benefits in respect of import of shredded tyres scrap (cut into pieces), which was a petroleum product. The DTRE research study further revealed that the M/s Lucky Cement Limited has not mentioned export value of shredded tyres. It further revealed that the import goods by M/s Lucky Cement Limited were not exported, therefore according to the DTRE any input good is to be exported and used as raw material in making product. “The M/s Lucky Cement Limited imported consignments worth over Rs 500 million from different Collectorates including Hyderabad Collectorate, Peshawar Collectorate and MCC-Port Muhammad Bin Qasim in last three years from the year 2011”it stated. “Further investigation in this regard is being continued in order to find more anomalies in DTRE scheme made by M/s Lucky Cement Limited”, sources added. —CT Report

ISLAMABAD

CUSToMS ToDAy RepoRT www.customstoday.com

irectorate of Customs Intelligence Karachi and Pakistan Rangers Sindh in a joint operation recovered huge quantity smuggled cigarettes, Indian gutka and Olavor sheesha worth Rs 66million at Bolton Market Karachi. As per details, foreign cigarettes, gutka and sheesha in a huge quantity have been illegally stored in different areas of Bolton Market Karachi. A team of Customs Intelligence ofOicials including Haji Muhammad Aslam, Akmal Hashmi and Qasim Alvi under the supervision of Deputy Director Dr. Ahsan Khan along with Pakistan Rangers, on a tip of informer, raided the places to recover the contraband. The joint operation team immediately recovered the smuggled goods after fulOilling the legal formalities under the Customs Act, 1969. Approximate value of the contrabands into custody was said to be Rs 66 millions which includes Benson Hedges, Dunhill, Pine and other foreign brands concealed in 310 cartons. Customs ofOicials claimed that it was the biggest quantity of smuggled Gutka and cigarettes ever seized in a single operation in recent years by any agency. Pakistan Customs lodged a FIR against culprits and started investigations in the matter. Director Customs Intelligence Muhammad Asif Marghoob Siddiqui informed that customs ofOicials have been carrying out raids on strict instructions from Director General Customs Intelligence Lutfullah Virk. He reminded that last month similar goods worth Rs.68 million were also seized from Bolton Market.

DTRE scheme: Customs to recover millions from Lucky Cement

— Exclusive Customs Today photo

Customs I&I seizes 120,000 litres smuggled oil KARACHI

CUSToMS ToDAy RepoRT www.customstoday.com

irectorate General of Intelligence and Investigation (I&I) Hyderabad seized oil tankers carrying sixty thousand litres of smuggled oil worth Rs 10 million. As per details, DG I&I on tip of informer raided oil tankers carrying smuggled oil and seized 60,000 litres oil. Three criminals have been arrested during the seizure.

It was said that oil was being smuggled to Interior Sindh via Hyderabad and was intercepted at the toll plaza by Field Intelligence Unit of Hyderabad. It is worth mentioning that DG I&I has seized total 1, 20,000 litres oil in two days, worth Rs 20 million during different raids. DG I&I has also arrested 5 criminals and started investigations under the Custom Act, 1969. The Directorate General has strictly warned all Oield formation ofOicers to increase surveillance to void such smuggling incidents.

Red card: No more tax exemptions to NGOs ISLAMABAD

CUSToMS ToDAy RepoRT www.customstoday.com

ederal Government has withdrawn the tax exemptions provided to education institutions running under NGOs, NPOs and welfare trusts. Instead of that they will now receive 100% tax credit facility equal to their payable tax but private charity institution that were not active in welfare efforts will not eligible for this privilege too. The three mandatory conditions to get 100% tax credit were that NGOs should submit Tax returns, withholding tax statements and details about payable tax to FBR.

After the amendment through the Finance Act, 2014 to Income Tax Ordinance, 2001, the NPOs/NGOs have been allowed tax credit instead tax exemption for the tax year 2015, and later

denied the issuance of exemption certiOicate for the tax year 2015. According to an explanation on Finance Act, 2014 issued by the FBR, all the exemptions have been withdrawn in this respect and re-

Several Npos/ Ngos are denied the issuance of exemption certiﬁcate for the tax year 2014-15 are to be issued certiOicate. The certiOicate, however, linked with the Oiling of income tax return but the tax year was not mentioned. Several NPOs/ NGOs were

placed with tax credit equal to the amount of tax payable on such income. The FBR also said that approval already obtained in respect of NPOs, trust and welfare institu-

tions shall continue to be valid. The FBR said that the concept of providing such concessions in case of NPOs was a preferable method and would promote documentation of tax laws by NPOs/NGOs. The FBR said that earlier income of the trust, welfare institutions, non-proOit organizations, religious and charitable institutions, universities, etc. was exempt from tax and they were allowed to get exemption certiOicate. It further said that since the exemption had been withdrawn and replaced with 100 percent tax credit, an equivalent amendment had also been made in the Income Tax Ordinance, 2001 for grant of exemption.

www.customstoday.com

NATIONAL 05

JULY 29 - AUGUST 11, 2014

USA Customs exempts youth over land Rover imports

NEW YORK: The owners of Land Rovers asked police and customs agents to hand over the keys to their imported wheels, seized by the Customs and claimed immunity under customs law which allow teenagers to import vehicle at 25 years. According to details, the seizures were the part of an ongoing investigation into the illegal import of Land Rover 90s, 110s and Defenders from Europe to the US. US Customs had already been explained guidelines for those looking to purchase a vehicle abroad and ship it stateside for importers.

Kashgar-gwadar corridor to be game-changer: Munawar Mughal Federation of chambers represents 43 chambers including eight women chambers and 93 professional associations ISLAMABAD

TARIQ DARyA

www.customstoday.com

ederal Board of Revenue has decided to introduce electronic monitoring system SEMP to void the tax theft at manufacturing level. As per a FBR source the project of SEMP has been in preliminary stage and FBR will hire a private company who would start a pilot project very soon to implement it practically. FBR authorities were of the view that theft of tax at manufacturing level cost national exchequer of billions as there has no record system of manufactured items. Also FBR has no control system to caught this theft at past. FBR has asked all manufactured to adopt the international style of writing code number and mention page number on their products. After the said system it will be very easy for FBR ﬁeld formations to detect any tax evasion by checking market goods by electronic device that if they were mentioned in the record presented to FBR or not. —CT Report

Senate seeks FIA to report on tax evasion in oil import enate Standing Committee on Planning and Development has asked Director General Federal Investigation Agency to submit a report on adulterated oil import and tax evasion during those imports. FIA likely to be given charge of examination of adulterated oil and of investigations in possible tax evasion by oil importers. Director General FIA would brief the Senate Standing Committee on Planning and Development in coming month on the said issue. A source told Customs Today that Senate Standing Committee had expressed deep concerns over the import of adulterated oil as well as tax evasion by oil importing companies. —CT Report

I am pleased to have been interviewed by the Customs Today team. I wish great success to Customs Today. try including eight women chambers and over 93 professional associations. It serves as bridge between business community and the government. The FPCCI strives for prosperity of the businessmen and raise voice for the resolution of problems faced to the business community across the country. The FPCCI elects its office-bearers and executive council in a fairly democratic manner annually. Moreover, the federation also has to interact

with the FBR, SECP and the Ministry of Finance besides Ministry of Interior for different issues of the businessmen. CT: Does Government consider FPCCI suggestions? MM: It is very pertinent question. The government departments appear in mood to consider our proposals. If government follows our suggestions as key stakeholder, our economy will be far better in performance among SAARC coun-

ASoconﬁscatessmuggledceramicstilesworthRs2.5m KARACHI

SoHAIl RAB KHAN www.customstoday.com

team of Anti-Smuggling Organization (ASO) of the Directorate General of Customs Intelligence and Investigation-FBR during a raid conOiscated smuggled ceramics tiles weighing 35505kg and costing Rs2.5 million from Super Highway. According to the details, an ASO team comprising its Incharge Haji Muhammad Aslam, Intelligence OfOicers Akmal Hashmi, Pervez Zardari, Qasim Alvi and others on a tip-off reached at Toll Plaza near

Super Highway and signalled to stop a Hino Truck bearing Registration No.698. Upon search, smuggled ceramics tiles weighing 35505kg and costing Rs2.5million were recovered from the truck. Later, the ASO team conOiscated the truck and goods and registered an FIR against the culprits. It may be mentioned here that the team of ASO few days ago conOiscated foreign cigarettes of different brands and contraband Indian ‘gutka’ during a raid at a go-down located in Joria Bazaar. The conOiscated goods were valued at Rs 60 million. Incharge ASO Haji Muhammad Aslam while talking to Customs

— Exclusive Customs Today photo

Tightinspection:FBRto launchelectronic monitoringsystem

— Exclusive Customs Today photo

unawar Mughal is leading business leader of Pakistan. With concerted efforts, he became president of Islamabad Chamber of Commerce and Industry thrice and currently is the vice president of FPCCI. He has represented Pakistan abroad and has got several awards including Human Rights Defender Award. He is role model for business community. The Customs Today during an exclusive interview tries to seek his viewpoint on various issues ranging from economy to privatization and working of the FPCCI. Following is the crux of this interview: CT: Mr Munawar Mughal please shed light on the proposed China-Pakistan Corridor? MM: Well, strategic and business partnership between Pakistan and China is strong and tall as Himalaya. To take these ties to new heights, Pakistan and China have decided to establish Kashgar-Gwadar business corridor. Under the project, China will lay rail, road and Oiber optic network from Kashgar to Gwadar. Similarly, China is going to invest$35 billion in Pakistan in couple of years which will not only boost our economy but will usher in new era of development and prosperity in Pakistan. Look, the day in not far off when Gwadar Port will be better and bigger than Dubai. CT: Tell us about working of FPCCI? MM: The Federation of Pakistan Chambers of Commerce and Industry is representative body of 43 chambers of commerce and indus-

tries. Business community must be given due place in Privatization Commission, Planning Commission, CDA and Regional Economic Integration Cell. CT: Please comment on privatization process in Pakistan MM: Privatization is good for economy as public sector organizations like PIA, Railways and Steel Mills have become white elephant. Disinvestment of PIA is good but no should no one should be rendered jobless during the process. FPCCI must be given representation in the Privatization Committee to ensure transparency and uphold interest of the business community. No underhand dealing like PTCL must be done. Moreover, data pertaining to all sick units must be collected from across the country. CT: Has FPCCI chalk out some development framework? MM: Yes of course, the FPCCI strives to increase trade volume up to $100 billion annually. Islamabad must be declared as “Gems & Jewelry City”. The smuggling of gems and precious stones to Jaipur, India must be curbed. Steel industry must be established in Multan or Bahawalpur. Let me praise Marble City in Mohmand agency. FPCCI wants activation of Services Export Development Council and TDAP. CT: Please put some light on smuggling MM: Smuggling cripples the economy. No doubt, the government has been trying hard to curb it but there needs more to be done. Smuggling from Afghan, Indian and Iran borders must be curbed. Customs inspectors must be given Rs100,000 salary per month to boost their performance and dedication towards duty as their role is of great signiOicance for the elimination of smuggling. Customs collectors must also be trained and held accountable.

Today said that the entire team of ASO has clear directives from the DG Customs Intelligence & Investigation-FBR, Luftullah Virk and Director Customs Intelligence & Investigation-FBR Asif Margoob Siddiqui that smuggling of contraband items should be eliminated at every cost. He further said that the ASO has left no stone unturned towards the eradication of smuggling of contraband items in the country. To a query, Haji Muhammad Aslam said that the ASO will continue its efforts against the smuggling and more raids would be conducted in future for elimination of smuggling from the country.

www.customstoday.com

SPECIALREPORT

JULY 29 - AUGUST 11, 2014

LAHORE

M HAyAT

www.customstoday.com he existing tax system is not an indigenous one and has turned into a nuisance for the taxpayers who want to pay their taxes. The registered taxpayers have been pressed hard by the authorities who, on the other hand, have failed to bring into tax net potential taxpayers and evaders. This was stated by Lahore Tax Bar Association President Ayesha Qazi during an exclusively interview with Customs Today at her ofOice in Regional Tax OfOice here. Ayesha Qazi, who has the privilege of being the Oirst-ever woman president of any Tax Bar not only in Pakistan but in the entire Asia, said We have been that people suggesting the avoided paying taxes for lack government to ensure of facilitation, rewards and that the taxpayers must improper be respected and use of their tax paid to facilitated irrespective the excheqof their status. This uer. “Four to will help nurture six percent of the society is tax culture in paying tax liaour society bility because of unawareness among the masses and harassing attitude of the Federal Board of

Revenue (FBR) employees,” Qazi disclosed, adding that worse was that the government was indifferent to address the issues. “People prefer avoiding taxpaying due to the tax related complexities. They save their money, their self respect, their peace of mind by not coming into contact with the tax authorities,” she pointed out. “We have been suggesting the government to ensure that the taxpayers must be respected and facilitated irrespective of their small or big status. This will help nurture tax culture in our society and taxpayers will feel proud over the non-taxpayers,” the LTBA president elaborated. Earlier, the government used to issue preference cards to taxpayers which would enable them enjoy preference at various places including airports and railways station. The authorities at these places would respect them which would ultimately make the taxpayer more disciplined towards their tax liabilities,” she asserted. Ayesha Qazi said that now the government had launched privilege cards for top taxpayers only, leaving the taxpayers in general in the lurch. She highlighted the bad impact of the amnesty schemes, saying that the government had become habitual of introducing amnesty schemes which discouraged the regular taxpayers. “One who pays his tax liabilities regularly feel disappointment when he come across the fact that people who have not been paying their tax for so long will be “puriOied” by paying a small amount as their tax liability,” she explained, adding that such amnesty

scheme motivated regular taxpayers to do away with his tax liability in the pretext of availing amnesty schemes like the none-return Oilers. To a question, she said that difOiculties confronted people with while obtaining NTN and registration was another great hurdle in broadening the tax net. “You say there is no fee for obtaining NTN and registration but in fact one cannot get NTN or get registered unless you pay Rs20,000 to 30,000 bribe to the ofOicials concerned,” the LTBA chief disclosed. Ayesha Qazi stressed that the tax system should be de-centralization and people living in any part of the country should be registered in the immediate vicinity of their dwelling. “The FBR chairman, members and everyone in the department is agreed with the suggestion but everyone is “passing the buck” when they are asked to take up the issue, Ayesha Qazi expressed her disappointment. The LBTA president citing the example of Broadening of Tax Base (BTB) department in Lahore said that the bureaucrats have been doing contrary to their jobs by disallowing the general public to visit them in their offices. They often discourage the people by rebuking them harshly, she said, adding in such circumstances boarding of tax net dream is impossible to be realized.

JULY 29 - AUGUST 11, 2014

SPECIALREPORT 07

— Exclusive Customs Today photos

www.customstoday.com

08 EDITORIAL

JULY 29 - AUGUST 11, 2014

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

eDIToRIAl

pakistan, IMF talks

akistan and the IMF kick-started fourth review talks in Dubai from August 6, 2014 under 36 months Extended Fund Facility (EFF). Islamabad has so far received four installments having $550 million each after successful completion of review and approval of tranche by the Fund’s executive board. In case of completion of fourth review, Pakistan will be able to draw fifth tranche worth $550 million from the IMF after evaluating economic health of the country on the basis of the measures taken by the government in the budget 2014-15. On the forefront of upcoming review talks, the achieving of the desired fiscal deficit target will be the important subject of discussion. The government has already made it clear that there is no possibility of revising downward the FBR’s tax collection target from Rs 2810 billion set for the ongoing fiscal year. For FY2014/15, Pakistani authorities have committed to reducing the deficit by nearly an additional point of GDP, to 4.8 percent of GDP. This reduction should further allay fiscal crisis fears and bring the deficit closer to a sustainable level. The bulk of the agreed adjustment will also improve the efficiency of tax collections and expenditures. On the expenditure side, there will be a significant further reduction in untargeted electricity subsidies while making room for increase investment spending and an additional sharp increase in targeted support for the poorest through the BISP. On the revenue side, measures should increase the tax-to-GDP ratio by 0.75 percent of GDP, mainly via measures to close tax loopholes and broaden the tax base. These objectives will require firm implementation and vigilance against any deterioration in tax administration and full pass-through of any future changes in energy costs. This revenue increase, while welcome, still leaves Pakistan’s tax-to-GDP as one of the lowest in the world. Staff would have preferred a more ambitious tax effort for FY2014/15, particularly in terms of base broadening to move Pakistan more decisively toward a tax-to-GDP ratio of 13–15 percent of GDP over the medium term, which is necessary to secure lasting fiscal sustainability while allowing for much needed higher investment in infrastructure, health and education. The proposed measures to broaden the tax base, according to the IMF, are welcome, but could have been more ambitious. The authorities’ plan to eliminate concessions and exemptions granted through SROs is a positive development. The SRO reduction or elimination, expected to yield 0.3 percent of GDP in additional revenue in FY2014/15, is a first step but should have gone further. The Pak authorities have committed to a similar effort to cut additional SROs in FY2015/16 and FY2016/17 which will help move toward a modern tax base. Outside of SROs, the FY2014/15 budget could have placed greater emphasis on other bold base broadening measures with a more decisive permanent impact on the revenue-to-GDP ratio, rather than on small tax measures of limited quality. In the next fiscal cycle, the government will need to press forward with additional steps to simplify the tax system, broaden the tax base (including beyond SRO elimination), and provide a level playing field for taxpayers.

China-Pakistan Economic Corridor ISLAMABAD

SM HAIDeR

www.customstoday.com

silver line on the economic horizon of the country is lightening up in shape of China-Pakistan Economic Corridor (CPEC) under which Beijing is all set to Oinance over three dozen projects with estimated cost of $40 billion. The government has attached highest importance to CPEC initiatives as institutional structure has been put in place in order to undertake development projects at accelerated pace. Under this institutional structure, a steering committee has been constituted headed by Prime Minister Nawaz Sharif with the mandate to hold monthly meeting to review progress on projects on regular basis. According to the terms of reference (ToRs) of the steering com-

mittee, it will provide strategic guidance for planning, monitoring and implementation of CPEC projects, approve CPEC plans, review progress of CPEC on monthly basis and monitoring individual projects on need basis. The economic corridor between Pakistan and China has enormous potential which will promote economic integration in the region and will beneOit about 3 billion people in China, South Asia and Central Asia. A number of strategic projects have been envisaged under CPEC especially in transport infrastructure and energy which will further expand regional economic cooperation. After Oinalizing initial work by both sides, an important meeting of the energy joint working was held on August 4, 2014 at Beijing. Islamabad has already submitted its plan before the Chinese side with its wish-list by proposing to invest major portion of

upcoming money on energy sector of the country. Out of 37 projects so far agreed by both sides under CPEC, 22 schemes are in the power sector having total estimated cost of $27.3 billion. Pakistan wants to construct six coal-based power projects with an estimated cost of $5.94 billion. Two more coalbased power plants, each 660MW, are planned to be setup at Port Qasim having estimated cost of $2 billion. Three projects, each 330MW, are proposed to be setup at Thar Powr Coal Plant with an estimated cost of $1 billion. China Power International proposed to setup two power plants having total generation capacity of 1200MW with an estimated cost of $1.8 billion. A coal mining project of $860 million at Thar Block-II is part of the list. At Thar Block-I, another coal mining project worth $1.3 billion has been planned.

The government has also included 1100MW Kohal powr project worth $2.4 billion, 720MW Karot Hydro Power Project worth $1.42 billion, 873MW Suki Kanari hydropower project costing $1.8 billion and three wind power projects of 250 MW $375 million in its list. The federal government has included nine projects of Punjab government that promises 6,110MW power generation at an estimated cost of $6.2 billion. The Orange line Metro Train costing $1.6 billion is also included in the list. The cost of 387 kilometer Multan-Sukkar section of Karachi-Lahore Motorway has been estimated at $2.6 billion. The cost of Karakoram Highway, Raikot to Islamabad section, has been estimated at $3.5 billion. Similarly, the cost of rehabilitation and up gradation of Karachi-LahorePeshawar railway track has been estimated at $3.7 billion.

www.customstoday.com

NATIONAL 09

JULY 29 - AUGUST 11, 2014

Iranian ports to witness foreign ships again

TEHRAN: Deputy head of Ports and Martitime Organization (PMO) Ali Jahandideh said that the first foreign shipping line will resume sending ships to Shahid Rajaee Port in Hormuzgan provinceshortly. He said, "The shortage in the number of foreign ships berthing at Iranian ports had decreased the productivity and efficiency of ports. However, during the past few months, we made adequate efforts to encourage foreign shipping lines to start visiting the Iranian container ports again.

Tracking system helped curb pilferage of ATT cargoes he installation of tracking system on cargos of AfghanTransitTrade (ATT) has helped tremendously to eliminate the incidents of pilferage or missing of containers. According to an official report, more than 45,000 containers were tracked through the installation of security instruments, such as container security device (CSD) and Prime Mover Device (fixed on truck and inter-linked with CSD).The report termed the first year’s performance of tracking ATT cargos through sensitive devices satisfactory, citing the industry’s demand for the expansion of the system to other areas like transshipment and export trade of the country. The trade and industry had been complaining about smuggling through ATT, dealing a severe blow to domestic industry and import trade originated through official channels. Besides many scandals were reported about large number of missing ATT containers, most of them alleged to have never crossed the Pakistan-Afghanistan border and were either unloaded within the city jurisdiction or elsewhere in the country. Though tracking of the ATT is being carried out by a private company and Customs Collector (Preventive) is heading the project. The system works on real-time basis and in case of any deviation in the set route by the prime mover (truck), central or regional control rooms can monitor and trace it. Around 3,990 (9.13 per cent) cases were recorded on basis of route deviation during the period. However, the unusual stoppage remained on higher side and stood at around 35,107 or 80.3pc of total trips. The drivers of prime movers (trucks) have yet to understand the value of timely delivery of goods in Pakistan and they have to be educated about modern era challenges of timely delivery, an official said. —CT Report

wRITe To US yoUR gRIeVANCeS: Through CUSToMS ToDAy platform Help DeSK, now you have chance to DIReCTly write your problems to top govt. functionaries. If you have any grievances, queries, questions or suggestions, you can write in this section as it provides easiest access to you to approach Customs and Revenue authorities. wHo can write in this section? Importers & Exporters, Customs Agents, Chambers of Commerce, Trade Associations and Customs Officers To wHoM you can write? Honourable PM, Minister/Secretary for Finance & Revenue, Minister/Secretary for Ports and Shipping, FBR Chairman, Member Customs and Chairperson Senate/National Assembly Standing Committee on Finance & Revenue. Send your letters at: newsdesk@customstoday.com.pk

New post of former secretary FTo frets many ISLAMABAD

CUSToMS ToDAy RepoRT www.customstoday.com

ederal Tax Ombudsman (FTO) Abdul Rauf Chaudhry has appointed secretary FTO as senior advisor and chief coordinator amid his retirement next month. The FTO Abdul Rauf Chaudhry has introduced new post of chief coordinator in FTO ofOice to adjust the secretary FTO who was leaving his ofOice in August. Although the post of chief coordinator demands coordination between all FTO ofOices but jurisdiction of newly appointed chief coordinator ofOicer has yet to be decided with FTO. Moreover, in a seminar on "Paperless Environment" by FTO ofOice, all participants appeared busy in discussing the new appointment and duties of chief coordinator FTO which were not yet clear. The authorities of FTO ofOice claimed that the awarding of Chief coordinator Post to Mr Abdul Khaliq was an admiration to his dedication to work. On the other hand some ofOicials show their concerns at new appointment as they believed the decision have been taken without any advice from senior ofOicers. "The decision of appointment Mr Khaliq as chief coordinator is a clear refusal of Supreme Court orders biding government to avoid the appointment of retired government ofOicers" they argued.

FTO sets up new advisory committee ederal Tax Ombudsman (FTO) Abdul Rauf Chaudhry issued notification of new ten members’ advisory committee with specified jurisdiction to perform the functions of the FTO. As per details, FTO announced ten members Advisory Committee for expert opinions on legal and policy matters of FBR. FTO Abdul Rauf Chaudhry will act as the Chairman of the committee while other member includes Ex FBR Chairman Abdullah Yousaf, Ex Chief secretary

Balochistan Major (R) Ashraf Nasir, ICCI President Shoban Khalid, Center for Peace & Development Initiative Executive Director Mukhtar Ahmad Ali, PTV anchor Sidra Iqbal, Advocate Supreme Court Akraamul Haq, Institute Charted Accountant Pakistan’s President Saqib Masood, Qaym automotive motor manufacturing Chief executive M. A Jabbar, Muhammad Adnan Jamil of Massorsal enterprises, Miss Sania Nishtar and Habib Fakhar udin.

As per notification all member will be given TA/DA equal to federal secretary on participation to every meeting. Advisory committee will give expert opinion on improvement of tax system and FBR legal matters. The advisory committee of the FTO contain most members from business leaders, tax consultants as well as experts in banking and finance. The wide representation has been assured in order to give proper cover to all segments of life.

Merger of ports and Shipping Ministry need of the hour To,

Honourable Prime Minister, Govt of Pakistan, Islamabad Dear Sir, Merger of Ministry of Shipping and Ports with some other Ministry is need of the hour as it had been a great source of corruption in the past decade only because of its independent status. Due to rampant corruption in the Ministry, cost of doing business in the country had gone up considerably. When the business community is paying for the release of their goods, how can they provide the goods to the users at their actual price and it was the practice during the last decade or over when no attention was given towards the menace of corruption that

had spread its tentacles to all spheres of life. With its merger with some other Ministry, the corruption would come down automatically thus bringing down the cost of doing business in Pakistan and ensuring provision of goods and raw materials to the end users at their actual price.

Business community believes that there is no need for the Ministry of Ports and Shipping and it would be better that either it should be merged or turned into a federal government department after having a thorough review of its working. Since the government has decided to weed out the

corruption, therefore it would be wiser on the part of the government to take action against black sheep in all the government departments. Yours Sincerely, Sardar Usman Ghani, Central Chairman, PHMA

www.customstoday.com

10 NATIONAL

JULY 29 - AUGUST 11, 2014

Customs seizes 143 used mobiles at Allama Iqbal Airport, FIR lodged

LAHORE: Customs authorities on Tuesday seized 143 used mobiles worth Rs 200,000 at the Allama Iqbal International Airport Lahore and registered FIR against an accused under Customs Act 1969. According to Customs officials, Muhammad Amir Khan of Chakwal was attempting to smuggle used mobile phones under pretext of personal luggage. The customs authorities examined the language and found used mobile sets worth Rs 200,000. The customs officials said that the accused tried to mislead them.

Seminar held to explain budgetary changes to tax oﬃcials ISLAMABAD

CUSToMS ToDAy RepoRT www.customstoday.com

one-day seminar on “Budgetary changes brought in through Finance Act 2014” was held at Federal Board of Revenue (FBR) Headquarters. Member Facilitation and Taxpayers Education (FATE) FBR, Ms Riffat Shaheen Qazi chaired the seminar. OfOicers from Regional Tax OfOice (RTO) Islamabad, RTO Rawalpindi, LTU Islamabad, RTO Peshawar and RTO Abbottabad attended the seminar. Chief Sales Tax and Automation Ashfaq Ahmed Tunio and Chief Income Tax Policy Malik Amjad Zubair Tiwana briefed the participants on the changes brought in through the said act. In his address, Chief Sales Tax and Automation Ashfaq Ahmed Tunio explained different aspects of Sale Tax and Federal Excise measures in steel sector, steel units in sugar mills, cigarettes, aerated waters, cement, travel by air, chartered Olights and retailers. Chief Income Tax Policy Ma-

lik Amjad Zubair Tiwana explained different features of amendments relating to Income Tax law through Finance Act 2014. He explained major amendments in withholding taxes, other revenue measures and relief measures taken by the government. He also made clear different aspects of withholding taxes, new withholding taxes, enhancing rates of existing withholding taxes, creating

distinction between Oiler and non-Oiler, enhancing withholding tax rates, increasing cost of doing business for non-Oilers, increasing cost of doing business for non-Oilers, revision in token tax, advance tax on registration and transfer, reduction in withholding tax rates, expense allocation in banking companies and reduction in tax rates. Speaking on the occasion, Acting Chairman FBR Shahid

Hussain Asad underscored the role of FBR officials and staff in resource mobilization and revenue generation extremely vital for the economic independence and socio-economic development of the country. He lauded the FATE Wing for organizing the seminar to educate the FBR officers and explain to them the legal provisions introduced in the Finance Act 2014.

FIR against appraiser

Appraising oﬃcials’ body forms committee to probe allegations KARACHI

CUSToMS ToDAy RepoRT www.customstoday.com

he Appraising OfOicials Association of Pakistan Customs in its recent meeting at Customs House decided to form a committee in order to probe the real aspects behind lodging of an FIR against an appraising ofOicer by the Directorate General of Customs Intelligence and Investigation (I&I), Karachi. According to details, a committee comprising Shaheen Farooqui, Javed Akhtar, Mir Mansoor, Dost Muhammad and Haris Khan has been formed in order to review reasons behind the FIR lodged against an appraising ofOicial Sarfaraz Bangash Zai. The meeting of Appraising OfOicials Association was presided

over by President Javed Raza while General Secretary Raja Waseem and others were also present on the occasion.

It was also decided in the meeting that the prevailing issue would also be taken up with the high authorities of Pakistan Cus-

toms including Chief Collector Appraisement-South Nasir Masroor, Collector of MCC-East Najeebur Rehman Abbasi and Collector of MCC-West Muhammad Saleem. The participants were of the view that the Customs I&I during entire process of registering an FIR had violated the Customs Act 1969 by exceeding their jurisdiction. The Association while strongly condemning Customs I&I demanded immediate withdrawal of the FIR against the appraising ofOicer. It is pertinent to mention here that the Customs I&I had registered an FIR recently against an appraiser of Group-IV namely Sarfaraz Bangash Zai on his alleged involvement in giving wrong beneOit of SRO to an importer and ignored lab report in coining oil/mineral oil.

Earlier, Ms Riffat Shaheen Qazi, Member FATE Wing welcomed the participants of the seminar and urged the ofOicers to utilise their energies with dedication and commitment to achieve the revenue collection target set for the next Oiscal year. The brieOing was followed by a questions-answers session. The participants raised different technical questions and they were answered accordingly.

FBR, PTA to keep record of imported mobiles ederal Board of Revenue has decided to take necessary steps as per the instructions of honourable Supreme Court in its verdict about illegal import of mobile phones and their use in terrorism activities. As per details, FBR with collaboration of PakistanTele-communication Authority (PTA) has decided start to maintain a record of every single mobile phone imported to Pakistan. FBR will note IMEI number of every cell which will also help prevent misdeclaration complaints. A source told CustomsToday that FBR has directed its all field formation staff especially deputed on ports to abide by the order of Court and check every single set imported in to country. PTA will help to record the IEMI numbers and other details of these sets. Earlier, FBR has received numerous complaints of misdeclaration and duty evasion in mobile phone import. Now after the new mechanism these issues will be solved and also after recording every cell phone duty evasion could be avoided. Moreover, PTA has also sent a letter to the FBR and directed custom officials not to clear consignments of cellular phones if the importer has not submitted design and IMEI details to the PTA. —CT Report

www.customstoday.com

NATIONAL 11

JULY 29 - AUGUST 11, 2014

KSA Customs seizes 5m Captagon pills

RIYADH: Customs officers on the Kingdom’s northern borders have thwarted an attempt to smuggle nearly 5 million Captagon pills hidden in egg trays within a consignment of goods sent through the border point. Haditha Customs Director General Ibrahim Al-Enezi told media that the pills were found to be hidden inside egg tray cartons loaded onto trucks. He said that the smugglers had cut the tray to put the pills inside. “The customs officers have foiled even more complicated of smuggling attempts in the past,” he added.

Tax evasion: FBR to seize accounts, property of 16 pAT leaders ISLAMABAD

CUSToMS ToDAy RepoRT

www.customstoday.com BR has decided to take stern action against 16 leaders of Pakistan AwamiTehreek for not submitting tax related documents and details of foreign donations which involves tax evasion of Rs 400 million. “We have found several million rupees bank transactions through different bank statements but the PAT chief and workers did not bother to file tax returns,” sources in the FBR confirmed to CustomsToday. The Lahore RTO has been investigating the case, has found that the PAT workers allegedly did not pay due tax. The Federal Board of Revenue has served notices on 16 top PAT leaders for their alleged involvement in Rs 400 million tax evasion and asked them to submit details of foreign donations and charities but despite extension in due date for submission they failed. A senior FBR officer told CustomsToday that Board has served notices under IncomeTax Ordinance 2001 section 122 (1) and 122 (5) to PAT workers but they failed to produce documents related to payable tax even FBR has granted extension till July 10. Later, FBR has approved third extension to PAT leaders till July 18, 2014 to submit details of foreign donations but again they did not submit the documents. “FBR has issued assessment orders after proper investigations and decided that if PAT workers failed to submit documents, FBR would seize their bank accounts and property. Sources told that Minhajul Quran HBL bank account # 10-79000672-0545 has witnessed 74,803 euro transaction from Frankfurt during December 2012 to June 2014 and US$ 97,326 in account #10-05010389-0545 during November

2012 to January 2014.The source also revealed that PAT director ﬁnance and close companion of DrTahir ul Qadari, Adnan Javed has bought a farm house worth Rs 100.5 million in Lahore with charity money. The PAT workers nominated in tax evasion by FBR includes, Dr.Tahir ul Qadari, Hassan Mahiudin Qadari, Muhammad Mustafa, Daud Hussain, Fazal Hussain, Hussain Muhiudin, Fazal Hussian s/o Shah Nawaz, Ruhaiq Ahmad

Abbasi, Muhammad Mustafa s/o Ahmad, Zahid Fiaz s/o Fiaz Ahmad, Ghazala Hassan Qadari, Manzoor Hussain s/o Ghulam Rasool, Javed Iqbal s/o Muhammad Nawaz, Shahid Latif s/o Muhammad Latif, Rana Jved Majeed, Haﬁz Sheikh Amin ud Din, Muhammad Saleem s/o Muhammad Nazir, Muhammad Ahmad,Tanvir Ahmad Sadiqqui, and MuhammadTahir Arfan s/o Ghulam Mustafa Badar. The Pakistan Awami Tehrek spokesperson said the PAT

Customs seeks court to summon Royal Packages

Multan customs registers 129 cases in Fy 2013-14

odel Customs Collectorate of Appraisement-East has requested the Sindh High Court (SHC) to summon M/s Royal Packages (Pvt) Limited for hearing in August. It is pertinent to mention here that the M/s Royal Packages has moved court against the charges of tax evasion in terms of customs duty, sales tax and income tax through claiming of inadmissible beneﬁt of SRO 811(I)/2009 leveled by Pakistan Customs in the Contravention Report (CR), made by R&D Section of MCC Appraisement -West in May. Meanwhile, the R&D Section of MCC Appraisement-East has also exposed the clearance data of M/s Royal Packages since the year 2011, which stated that the said importer has got cleared 282 consignments of Polypropylene and Polyethylene through the Collectorate of MCC Appraisement-East as exemption of Customs Duty, Sales Tax and Income Tax in terms of SRO 811(I)/2009 read with SRO 645(I)/2011 and SRO152 (I)/2013. —CT Report

ultan Customs Intelligence and Investigation (I&I) has registered 129 seizure and revenue cases from July 2013 to July 2014. As per details, Customs I&I has registered ﬁve cases of vehicle seizure worth Rs 4.2 million, seven cases of miscellaneous goods worth Rs 226.83 million in July. According to a report from Multan Customs, June was the month in which 20 cases were registered including six cases of vehicles seizure worth Rs 6.85 million and 14 miscellaneous goods seizure worth Rs 51.7 million.The highest revenue month was March 2014 in which 13 cars seized worth Rs 198 million and two miscellaneous goods seized worth Rs 4.5. Moreover, Customs registered 50 cases of vehicles worth Rs 74.35 million and 129 cases of miscellaneous goods worth Rs 213.1 million. Total Revenue collected by Customs for whole ﬁscal year 2013-14 is Rs 44.7 million which also includes revenue from auction of seized goods and penalties. Meanwhile, Multan Customs Intelligence and Investigation (I&I) has seized two trucks loaded with imported cloth near Khanewal toll

plaza here on the other day. As per details, Haji Sadiq Achakzai was attempting to smuggle two trucks loaded with imported cloths. Additional Director Customs I&I Nisar Ahmad on tip of informer has taken action and with his special team members Sheikh Muhammad Arshad ,Saleem Afzal, Mehr Khan Niazi,Lala Qadir Niazi and Sarfaraz seized illegal cloth. Customs special team got information that two trucks were coming from Quetta with large quantity of cloth and their destination is Lahore. Customs Intelligence and Investigation then quickly took action and conﬁscated both loaded trucks with Registration noTKQ 667 andTKL 597 on charges of unpaid customs duty taxes. Talking to CustomsToday Additional Director Nisar Ahmad said that the operation was successful against smugglers and they culprits failed to generate invoices of imported cloth worth Rs 25 Million.The arrested Haji Sadiq Achakzai has already been facing four diﬀerent seizure cases in customs which include the import of Polythene Bags(Plastic Daana),cloth and tyres of Bridgestone with Fir No 20/2014,17/2014 and 18/2014 respectively.

workers have regularly ﬁled their tax returns and have their accounts audited by FBR. He said after the June 17 incident in Model Town, the FBR had issued audit notices to the institution Minhajul Quran and workers of Pakistan Awami Tehrek. He said the notices to PAT workers and its chief were issued as a result of political victimization of Minhajul Quran. He said audit of an educational institution was against FBR’s rules.

The smuggler caught was notorious for smuggling from Iran, Afghanistan and has also faced couple of seizure cases in past. Customs has chased the smuggler near Khanewal and seized all cloth on two trucks. Meanwhile, Anti-smuggling wing of Pakistan Customs seized imported handsets and Cigarettes worth Rs 70.5 million during a raid near Multan-Khanewal road. As per details, Anti Smuggling Organization seized 10 cartons of imported cigarettes worth Rs 0.5 million due to non-payment of duty during a raid near Multan-Khanewal road. Moreover, Customs Anti Smuggling Organization also detained approximately 7000 imported handsets in a raid headed by Superintendent MalikTanvir along with inspectors Saleem Khan, Abdul Sattar and Irfan Quershi on misdeclaration.Talking to Customs Today Customs Superintendent MalikTanvir said that they have seized the handsets worth Rs70 million which were claimed as Pakistani made but on investigation we found they were imported without paying custom duty. Customs authorities lodged FIR against culprits and started investigations. —CT Report

MCC Sialkot witnesses increase in exports by 17.1pc: Collector ollector of Customs Sialkot Qurban Ali Khan while talking to CustomsToday said that exports from Sialkot region has increased about 17.1 percent during FY 201314 due to provision of advance facilities and rapid clearance of consignments by Model Customs Collectorate. He said that volume of exports from Sialkot Dry PortTrust (SDPT) and Sialkot International Airport has increased to Rs.11.17 billion during above mentioned period. Moreover, he told that exports of leather from MCC Sialkot increased by 16.3 percent, sports goods by 7.1 percent, surgical instruments by 17.9 percent, textile by 28.8 percent, cutlery by 7.8 percent and other goods by 5.5 percent.“New steps taken by MCC Sialkot were encouraging exporters of city to increase their volume of exports as clearance issue were being solve via one window operation to facilitate the exporters, who were contributing to national economy”he added. He also conﬁrmed that the MCC Sialkot has started to pay a large number of pending refund claims to the Sialkot exporters on priority and has already distributed Rs 330 million among them. —CT Report

www.customstoday.com

JULY 29 - AUGUST 11, 2014

Foreign investment rises in Fy 13-14

KARACHI: SBP declared that foreign investment rose to $4.377 billion in the previous fiscal year which was the highest amount since 2008-09. The country received a total of $2.665 billion foreign investment in fiscal year 2009. However, the sudden rise in the total foreign investment was due to $2.1 billion investment in the Eurobond. If this amount is deducted, the total foreign investment reduces to around $2.2bn, of which foreign direct investment was of $1.631bn. This is not a big change compared to FY2012-13’s figure of $1.456bn.

GSP+ status boosts textile exports to $13.74b The country’s textile exports have shown increase of 5.3 percent during previous ﬁscal year ISLAMABAD

CUSToMS ToDAy RepoRT www.customstoday.com

extile exports surged to $13.74 billion during previous Oinancial year 2013-2014 mainly because of the GSP Plus status granted to Pakistan by the European Union (EU). The country exported textile made commodities worth $13.74 billion during last Oiscal year (July 2013 to June 2014) as compared to $13.05 billion of the preceding year (July 2012 to June 2013), according to the latest Oigures of Pakistan Bureau of Statistics (PBS). The country’s textile exports have shown increase of 5.3 percent during previous Oiscal year. The PBS data showed that export of raw cotton has registered an increase of 33.27 per cent, cotton cloth 3.11 per cent, yarn 12.82 per cent, knitwear 10.53 per cent, bed wear 19.78 per cent, readymade garments 8.67 per cent, made-up articles 11.41 per cent and other textile materials 23.24 per cent during the period under review. Meanwhile, exports of the following textile commodities have recorded negative growth including cotton yarn 11.65 per cent, cotton carded 53.3 per cent, tents, canvas & tarpaulin 30.07 per cent and art, silk & synthetic textile, 5.47 per cent. The main reason behind increase in textile exports is GDP plus status effective from January 2014. Textile exports to the European Union (EU) registered an increase of 18 percent reaching the Oigure of $5 billion for the Oirst time due to the GSP plus status given by the EU, while textiles exports to the rest of the world declined by 3.5 percent.

The textile exports could have further increased if government had provided uninterrupted power supply to the industries. Sources in Textile Ministry informed that investment trend in the textile sector declined as compared to other regional countries due to the inconsistent polices on taxes, non-availability of energy, high interest rates and stuck up liquidity on drawbacks and refunds. Therefore, the government is working to prepare Oive years plan to provide incentives textile sectors. Under the new proposed tex-

tile policy (2014-19) value-added textile sector would be incentivised. According to the policy, textile export would be increased to $26 billion in next Oive years, besides creating jobs opportunities. Textile bodies had welcomed the increase in textile exports but also warned the government to improve energy and security situation in the country if they want to see growth in the next 12 months. The All Pakistan Textile Mills Association (APTMA), in its statement, said the increase in exports could have been higher by at least

Investment trend in the textile sector declined

10% if the effect of massive revaluation of rupee against the dollar and other foreign currencies was translated into decrease in cost of production, especially electricity and gas tariffs. Meanwhile, according to the PBS Oigures, the country exported goods worth $25.132 billion as against the imports worth of $45.113 billion, leaving trade deOicit at $19.98 billion during last Oinancial year 2013-2014. The PBS data further revealed that country exported foodstuff worth of $4.63 billion during period under review.

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