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pAkIStAN’S FIRSt INDeptH NewSpApeR ON cUStOMS
vol 2 Issue No. 25
weekly
karachi, tue July 08 - Mon July 14, 2014
Regd. No, Mc-1381
Price Rs. 50.00
eRADIcAtINg DRUgS
ANF is truly a strategic institution, striving hard to eradicate drugs business entirely to save future of the country, says ANF Punjab Commander Brigadier Syed Mehmoodul Hassan. | See pAge 06 | RevIewINg peRFORMANce
Chief Collector Nazim Saleem reviews measures taken regarding various anti-smuggling activities and revenue generation in a meeting with Preventive high ups. | See pAge 10 | ASSURINg expORteRS
ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
MCC Sialkot Collector Qurban Ali Khan assures Sialkot exporters about clearance of pending rebate claims cases in the first month of FY 2014-15. | See pAge 05 | cARtOONS SpecIAl
| See pAge 11 |
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fter tough struggle throughout the year, the Federal Board of Revenue has reportedly achieved its revenue collection target for the Jiscal year 2013-14, Jirst time in the history of Pakistan. On this landmark achievement, Finance Minister Ishaq Dar has congratulated FBR Chairman Tariq Bajwa and Members of the Board for their consistent efforts. After compilation of the latest data aggregate, tax collection Jigures have so far come up to be Rs2,371 billion out of which Rs101.707 billion are owed in the form of refunds and rebates. The net tax collection reached almost Rs 2270 billion against a collection of Rs 1946 billion in 2012-13. Although, the FBR has not yet released any ofJicial Jigures but its highups are sharing information that they are almost touching Rs 2270 billion mark. Within next few days the FBR’s collection Jigures would be Jinalized
FBRlANDMARkAcHIeveMeNt
Dar pats Bajwa, team on the back
It is the commitment, dedication and hard work of the FBR team that not only led to the achievement of the revenue target but also recorded over 16 percent increase in tax collection after clearance of cheques by State Bank of Pakistan as well as Auditor General of Pakistan. In the month of June, FBR provisionally collected record revenue of more than Rs306,713 million, registering the revenue collection growth in Jiscal year 2013-14 at 16 percent. FBR collected Rs240.994 billion in share of customs duty in the Jiscal year 2013-14 which was 0.6 per cent more as compared to previous year’s
customs duty collection. Direct taxes (income tax) of Rs877 billion were collected in Jiscal year 2013-14. Rs1,002 billion were collected under the head of sales tax. Sales tax collection at import stage recorded at Rs 495 billion. Domestic sales tax collection amounted to Rs506 billion. Collection of federal excise duty amassed to Rs 9.592 billion on import stage. Domestic collection of federal excise duty registered at Rs
129.492 billion. Finance Minister Senator Ishaq Dar has showered FBR Chairman Tariq Bajwa and his entire team with praise for achieving revenue collection target set for Jiscal year 2013-14. Dar lauded that it was the commitment, dedication and hard work of the FBR team that not only led to the achievement of the revenue target but also recorded over 16 percent increase in tax collection, which, he termed, unprecedented in the history of Pakistan. The Finance Minister said that targets were always set on the higher end and efforts are made to reach closer to it, adding that the FBR would devise a strategy to achieve the target of Rs2,810b set for the next Jiscal year 2014-15. He directed the FBR Chairman to work for simplifying the procedures involved in Jiling returns and incentives should be given to the return Jilers as compared to the non-Jilers. He added that the taxpayers should be facilitated by simplifying tax reporting so that people prefer to paying taxes rather than evading tax. He further said that serious efforts would be made for the documentation of the economy.
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02 ISLAMABAD
JULY 08 - JULY 14, 2014
customs confiscates two non-duty paid vehicles
ISLAMABAD: The quick response force of Directorate of Intelligence and Investigation-Customs, Rawalpindi has confiscated two non-duty paid cars on tip-off. FIRs have been registered in both cases. CIF value of both cars amounts to Rs 4.5 million. One of the cars was Toyota Hi-Ace numbered IDT 1513 which was taken into custody at a fuelling station on GT Road near Tarnol. The other car was seized at railway station in Rawalpindi for being non-duty paid.
BR has announced promotion of nine Grade-19 officers of Pakistan Customs Service to Grade-20 and 41 officers of Grade-18 to Grade-19. As per FBR notification, the officers promoted to Grade-20 include Suraiya Ahmad Butt, Dr. Naeem Khan, Mukarram Jah Ansari, Qurban Ali Khan, Asif Mahmood Jah, Dr. Zulfiqar Ali Ch, Ahmad Reza Khan, Abdul Majid Yousfani and Muhammad Sadiq. Forty-one BS-18 officers of Pakistan Customs Service promoted to the post of Additional Collectors (BS-19) are Samiul-Haq, Amjad-ur-Rahman, Khurram Naeem, Abdul Waheed Marwat, Ijaz Badshah, Dr Nasir Khan, Muhammad Saleem Memon, Yousaf Haider Orakzai, Qasim Hafeez Cheema, Syed Aftab Haider, Muhammad Nayyar Shafiq, Ayesha Niaz, Shoukat Ali, Azhar Hussain Merchant, Jameel Ahmed Baloch, Zahra Haider, Rizwan Salabat, Ghulam Mustafa, Junaid Ahmed Memon, Sameera Sheikh, Naveed Illahi, Beelam Ramzan, Mehreen Naseem, Saadia Sheeraz, Muhammad Haris Ansari, Dr Shahab Imam, Rabia Iffat, Taimoor Kamal Malik, Karam Elahi, Syed Mahmood Hassan, SM Ali Zaman Gardezi, Muhammad Asif, Ayesha Bashir Wani, Mona Aslam, Nisar Ahmad, Rizwan Basharat. Tasleem Akhtar, Muhammad Farukh Sharif, Omar Shafique, Muhammad Raza and Syed Fazal Samad. —CT Report
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Steel smelters seek extension in deadline to depositWHT teel smelters have asked Federal Board of Revenue to extend the last date for submitting withholding tax by about a month and a half. Sources told Customs Today that the other industries have not asked for extension of the last date so far. In a meeting held between FBR authorities and steel smelters, matters regarding the issue were discussed and agreed upon for granting sixty to ninety days’extension of the last date to submit WHT. FBR has by now issued notices to several industries including steel smelters in this regard. During the recent meeting held between Member Inland Revenue (Operations) and Steel Smelters Association representatives, the traders were of the view that since they had deposited electricity bills in the last days of June which constituted heavy amount of money and they have to deposit bank installments, still they are facing financial problems. Therefore, the steel smelters should be given time for submitting WHT. Member Inland Revenue said that the demands of the steel industry were genuine. —CT Report
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FBR compiles assets detail of 1100 officers, 150 still out of list FBR Admin employees receive three times bonus, others protest ISLAMABAD
FBR officers’ ex-Pakistan leave tied to declaring assets
MUHAMMAD FAIZAN www.customstoday.com
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o ensure good governance, departmental discipline and proper following of rules and regulations, Federal Board of Revenue has succeeded in compiling 9 years’ data of 1100 FBR ofJicers’ assets i.e. from 2005-14. These ofJicers were previously reluctant to submit their documents. Presently, there are only 150 ofJicials who are not yet added to the list. However, FBR Administration has discontinued special allowances equal to salaries of these ofJicers for three months. In addition to this the names of the ofJicials are also displayed on the web portal. Furthermore, if these 150 ofJicers of the Board fail to submit details of their assets, they will be issued charge sheets. FBR Chairman Tariq Bajwa has directed the administration of the Board to act strictly according to rules and regulations in this regard. FBR’s Member Admin Shahid Hussain Jatoi conJirmed to Customs Today that there will be no compromise on rules and regulations of the institution. He explained that these steps are being taken to improve the performance of the ofJicers and the institution. He said that those ofJicers who have submitted details of their assets will be monitored regarding any increase in their incomes. In case there are differences they may face enquiry and compulsion of producing sources and proof of their income. Meanwhile, Employees at Federal Board of Revenue have protested the three months salary bonus an-
There will be no compromise on rules and regulations of the institution, says Shahid Hussain Jatoi nounced by the Finance ministry for administration department while the rest of the departments have been awarded one month’s salary bonus only. The protest was demonstrated through black strips on the arms of the employees. Employees of various
departments including Audit, Legal and Enforcement have asked the FBR Chairman Tariq Bajwa that they should be awarded equal bonus as that of administrative department. They insisted that they have been as dutiful as that of any other departments’ ofJicials.
Clearance of fabric gets tougher ISLAMABAD
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ssistant Collector of Islamabad Dry Port Yawar Nawaz has made it mandatory for consignments of imported fabrics to go through laboratory testing while strictly directing the staff at the dry port to ensure that the procedures of customs clearance are being properly followed. As per directives, the duties/taxes levied on the import of textile fabrics will be subject to laboratory reports. It has recently come into notice of the port authorities that the customs authorities including customs intelligence have encountered
BR administration has taken strict measures regarding restrictions for FBR officials to seek leave for travelling abroad. The chances of FBR officials seeking to travel abroad will be conditional with their source of income and declared financial assets. The determination of their financial assets will be made in accordance with the details provided by themselves in their returns. Those officials who fail to submit their asset details will not be able to travel abroad at all. FBR Member Shahid Hussain Jatoi told Customs Today that after this decision the number of FBR officials seeking to travel abroad will be drastically reduced. Those still wanting to be spared the administration’s tough criteria are now trying to influence the FBR high-ups through different kinds of pressures. But FBR administration has rejected all references and pressures altogether. According to sources it has recently been observed that certain officers have sought leave for travelling abroad with their families to stay there for long time that they cannot afford as per their declared financial assets. In some cases the grant of leave was reduced to two weeks against the applied leave for four weeks. A substantial number of FBR officials are unhappy with this decision. Some of them are reportedly using influence to reverse the decision. —CT Report
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— Exclusive Customs Today photo
FBR promotes 9 Grade-19, 41 Grade-18 customs officers
numerous cases of duties/taxes evasion through mis-declaration by fabric importers. Consequently, Assistant Collector Yawar Nawaz has decided to test each and every fabric consignment in the customs intelligence forensic laboratory. The importers will also be provided with the same sample so that if they wanted they could conJirm the test through private laboratories and compare it against customs laboratory reports. Assistant Collector Yawar Nawaz has warned all the departments concerned against taking any kind of risk in regard to proper examinations. According to sources, levy of customs duty and other taxes until recently was mostly relied upon
guesses of experienced customs ofJicials. In such circumstances the fabric importers were taking their chances in dodging the authorities. Recently, ofJicials of Customs Intelligence and Investigation came upon a case in which the containers were cleared through customs but when the ofJicials rechecked the consignments, massive mis-declaration was revealed. The containers were then held. On thorough enquiry into the matter by the customs intelligence ofJicials it was revealed that it was not a case of corruption within the department. Instead the importers took advantage and tried to bully the customs ofJicials at Islamabad Dry Port in which they initially seemed to succeed until they were caught.
customs seizes ball bearings worth Rs12.5m n an Anti-smuggling activity, Directorate of Intelligence and Investigation-Customs, Rawalpindi has taken into custody smuggled ball bearings worth 12.5 million rupees. The estimated levy of duties/taxes on the same ball bearings was supposed to be 2.2-2.7 million rupees. Officials of the directorate intercepted a Mazda truck from Peshawar went through examination. The routine check on the truck revealed that it was full of smuggled ball bearings. Customs intelligence officials confiscated nonduty paid ball bearings. An FIR has been registered. —CT Report
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KARACHI 03
JULY 08 - JULY 14, 2014
ptA for govt steps to save declining leather goods exports
KARACHI: The Pakistan Tanners Association (PTA) has warned against the declining leather exports, expressing the apprehension that the situation warrants remedial measures lest Pakistan will lose leather goods market to Indian competitors. According to PTA’s Standing Committee on Gas and Infrastructure Chairman Usman Umer, leather exports had declined by more than 14% during the last five years from $1.22 billion in fiscal year 2007-08 to $1billion in 2012-13, due to severe energy electricity and gas shortage.
odel Customs Collectorate of Port Muhammad Bin Qasim has collected revenue amounting Rs 26,480 million by the end of June, 2014 against its target of Rs 36,759 million set by the Federal Board of Revenue for the last month of the Fiscal Year 2013-14. MCC Port Qasim despite all out efforts in order to meet the revenue target for the month of June, 2014 has fallen short by the Rs 10,279 million in the month. According to the statistics, MCC Port Qasim has collected revenue of Rs 6,500 million in share of customs duty against the target of Rs 8,640 million with a shortfall of Rs 2,140 million. The collectorate has collected an amount of Rs 16,852 million in share of sales tax against the target of Rs 23,414 million, witnessing revenue shortfall of Rs 6,562 million by the end of the last month of fiscal year 2013-14. The collectorate has collected revenue amounting Rs 2,848 million in share of income tax in the month of June 2014 as compared to the target of Rs 4,350 with the shortfall of Rs 1,502 million. MCC Port Qasim has collected a sum of Rs 280 million in share of federal excise duty against set target of Rs 355 million with the shortfall reaching Rs 75 million. It is pertinent to mention here that the trend of shortfall continued through the last quarter. Model Customs Collectorate of Port Qasim had collected revenue of Rs 22,612.9 million with a difference Rs 10,995 million against the target of Rs 33,608 million for the month of May. As per statistics, MCC Port Qasim collected the revenue of Rs 4,880.15 million in share of customs duty against the target of Rs 8,790 million with the massive shortfall of Rs 3,909.9 million. —CT Report
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Mcc Appraisement west bags Rs20.8b, east collects Rs16.1b KARACHI
KARACHI
SOHAIl RAB kHAN
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odel Customs Collectorate of Appraisement-East has collected an amount of Rs 16,113.5 million against the target of Rs 28,037.7 million, set by the Federal Board of Revenue for the month of June, 2014. The collectorate has fallen short of its target by Rs 11,924.2 million. According to the statistics, MCC Appraisement-East has collected an amount of Rs 5,003.4 million in share of customs duty against the target of Rs 10,209.6 million with a difference of Rs 5,206.2 million. The Collectorate has collected an amount of Rs 8,432.2 million in share of sales tax against the target of Rs 12,959.5 million with a shortfall of Rs 4,527.3 million in the month of June, 2014. It has collected an amount of Rs 2,429.9 million in share of withholding tax against the target of Rs 4,820 million with a shortfall of Rs 2,390.1 million in the month of June, 2014. However, MCC AppraisementEast has collected an amount of Rs 248 million in share of federal excise duty against the target of Rs 48.7 million with the exceeding collection in share of FED amounting Rs 199 million. It may be mentioned here that Model Customs Collectorate of Appraisement-East had collected to-
— Exclusive Customs Today photo
MCCPortQasim collectsRs26.5b againstRs36.8btarget
tal revenue of Rs 14,863 million against its set target of Rs 21,584.6 million with a shortfall of Rs 6,721.5 million in the month of May, 2014. The collectorate collected revenue of Rs 4,149.9 million in share of customs duty against the set target of Rs 6,871 million with a difference of Rs 2,721.1 million. The collectorate collected an amount of Rs 8,532.31 in share of sales tax against the target of Rs 10,362.8 million with the shortfall of Rs 1,830.5 million. Similarly, MCC AppraisementEast collected revenue of Rs 2,117.7 million against the set target of Rs 4,267.11 million with the difference of Rs 2,149.4 million. It collected a sum of Rs 63.2 million in share of federal excise duty against its set target of Rs 83.7 million with a shortfall of Rs 20.55 million.
odel Customs Collectorate of Appraisement-West has collected an amount of Rs 20,776 million against the target of Rs 30,357 million, set by the Federal Board of Revenue for the month of June, 2014. The collectorate has fallen short of its target by Rs 9,581 million. MCC Appraisement-West has collected an amount of Rs 10,766 million in share of customs duty against its target of Rs 15,314 million with a shortfall of Rs 4,548 million. The Collectorate has collected an amount of Rs 7,144 million in share of sales tax against the target of Rs 10,182 million with a shortfall of Rs 3,038 million by the end of June, 2014. MCC Appraisement-West collected an amount of Rs 2,759 million in share of income tax against the set target of Rs 4,820 million with the shortfall reaching Rs 2,061 million in the month of June, 2014. However, it has collected an amount of Rs 107 million in share of federal excise duty against the target of Rs 41 million with a surplus collection of Rs 66 million. It is pertinent to mention here that Model Customs Collectorate of Appraisement-West had a target of Rs 22,787 million for the month of May, 2014. However, the collectorate managed to collect the rev-
— Exclusive Customs Today photo
enue to the tune of Rs 16,714 million in share of all heads with a difference of Rs 6,073 million. As per statistics, MCC Appraisement-West collected a sum of Rs 6,105 million in share of custom duty against the target of Rs 10,306.4 with the difference of Rs 4,201.4 million. Similarly, the collectorate generated the revenue of Rs 7,650 million in share of sales tax in the month of May, 2014 against its set target of Rs 8142.2 million with a shortfall of Rs 492.2 million. The collectorate collected the revenue of Rs 2,854 million in share of income tax against the target of Rs 4,267.1 million with a difference of Rs 1413.1 million. However, it collected the revenue of Rs 105 million in share of federal excise duty against its set target of Rs 71.30 with a surplus of Rs 33.7 million.
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04 KARACHI
JULY 08 - JULY 14, 2014
Dubai customs launches smart phone, smart watch apps
DUBAI: Most of Dubai Customs services can be accessed through smart phones and smart watches as it has launched a revamped smart phone app. The web-based application is adaptable on all mobile platforms and can be used to process various applications, make service requests as well as status inquiries. The application was unveiled by Sultan Ahmad Bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation, along with Director of Dubai Customs Ahmad Mahboob Musabih at Dubai Customs head office.
Customs,TDAP to be linked throughWeBOC irectorate of Reforms and Automation has started its work on formation of Requirement Specification Documents (RSD) in connection with import/export of gold, jewellery and gemstones relates to SRO 760/2013. FBR sources informed CustomsToday that the Economic Co-ordination Committee has decided to establish interface between Pakistan Customs and Trade Development Authority of Pakistan in order to automate Customs clearance procedures of import/export of gold, jewellery and gemstones accordingly. They further revealed that the RSD will cover those business procedures which have been approved by the RSD Approval Committee of Pakistan Customs, adding that the documents have been forwarded to the automation team of the Directorate of Reforms and Automation for the development of the software inWeBOC computerized system. “In the Customs clearance procedure, the user ID shall be provided to theTDAP to feed all the relevant details for issuance of No-Objection Certificate (NOC) against the imports/exports of gold and jewellery,” sources added. They further told this scribe that once the NOC is being issued in the system, the importer shall file Goods Declaration (GD) against that NOC approval number and the system shall bind 25 kilogram cap revolving allocated quota with the NationalTax Number (NTN), so as to avert any chance of exceeding the quota limit. Sources further said that the commercial banks will provide user IDs in the system that will also provide screen to the banks for uploading 1 per cent cash margin certificate amounting to the value of 1 per cent of gold. —CT Report
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FBRtoconferspecial powersonSpS BR is mulling over to increase the work jurisdiction of the Superintendents of Preventive Services (SPS) in the Model Customs Collectorate (MCC) of Preventive. The FBR sources informed Customs Today that the Superintendents of Preventive Services (SPS) will distribute the assignments/coursework of the assistant collectors in Preventive Services after they are promoted from Grade 16 to Grade 17 as per the recommendations presented in the recent Budget 2014-15. The sources further revealed that the FBR authorities are taking such steps into consideration while keeping into mind the extra work pressure and multi assignments of assistant collectors and their high-ups. “The Superintendents of Preventive Services (SPS) will soon get the additional charge after getting promoted from Grade 16 to Grade 17 and will distribute the works/assignments at assistant collector level”, it added. —CT Report
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customsI&Iseizes8000whisky bottles,beercans;customs agent,companyofficialheld F
IOCO to deal with SRO 565(I)/2006 related to duty exemptions on raw materials import
KARACHI
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irectorate of Intelligence and Investigation-Customs, Karachi has thwarted an attempt of smuggling contraband items including foreign brand whisky and beer in a raid at Pakistan International Container Terminal (PICT), East Wharf. A team of Directorate of Intelligence and Investigation-Customs, Karachi on a tip-off raided PICT, East Wharf and halted consignments of paper. After thorough examination, 5000 bottles of Black Label, foreign whisky and hundreds of foreign beer cans were found in the consignment. Sources at PICT informed Customs Today that the contrabands including foreign whisky and beers were smuggled in garb of paper consignments. Sources further revealed that the whisky and beer bottles were compressed with machine at the bottom of the cartons and it was difJicult to identify the product concealed at the bottom of the cartons. However Customs Intelligence accomplished the task of revealing the contrabands on reliable information. “The seized contraband items were worth million of rupees. Further investigation is underway in this regard”, the sources added.
— Exclusive Customs Today photo
gold, jewellery clearance
Initial investigations led Customs Intelligence to recover 3000 more bottles of foreign brand whisky and beer cans
Initial investigations led Customs Intelligence to recover 3000 more bottles of foreign brand whisky and beer cans after conducting a raid at a warehouse located in SITE area. Directorate of Intelligence and Investigation, Karachi has arrested a customs agent namely Javed Umer, who was involved in clearing the consignments and an ofJicial Shahid Hussain of the company M/s AZ corporation, Karachi.
BR has now authorized and conferred Input-Output Co-efficient Organization (IOCO) of Pakistan Customs for the implementation of Statutory Regulatory Order (SRO) 565(I)/2006. FBR has decided to confer powers relating to the SRO 565(I)/2006 to IOCO. Earlier, Model Customs Collectorate of Appraisement-West was dealing with the said SRO.The SRO 565(I)/2006 deals with the prime obligations linked with reconciliation, audit, approval and survey. The SRO 565(I)/2006 basically includes exemptions from customs duty on import of raw materials, subcomponents, components, sub-assemblies and assemblies, for manufacture of specified goods including air-conditioners, deep freezers, refrigerators, washing machines, car air conditioners, chrysotile cement pipes, sheets, fittings and others equipments (survey based). Through the SRO 565(I)/2006 an importer-cum-manufacturer having suitable in-house facilities and registered with the SalesTax Department as manufacturer shall submit a complete list in the prescribed format [appended as Form-I] of his annual requirement of permissible items (inputs) he intends to import for the manufacture of goods mentioned in column (2) of the table to the Director Input Output Co-efficient Organization having jurisdiction or to any other organization or person as authorized by the Federal Board of Revenue. —CT Report
Fraudulent clearance of plastic moulding materials
ThreeimportersbookedbyAIBofMCC-Appraisement(West) KARACHI
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he Appraising Intelligence Branch (AIB) of the Model Customs Collectorate (MCC) of Appraisement (West) registered an FIR against importers including M/s Reliable Associates, M/sVitalTrade International and M/s ShahabTraders for alleged involvement in fraudulent clearance of plastic moulding materials by availing benefit of Zero rating Sales Tax under SRO 670(I)/2013. According to details, the MCC-Appraisement (West) was tipped off reliably that certain unscrupulous importers including M/s Reliable Associates, M/sVitalTrade International and M/s Shahab had been indulged in fraudulent clearance of plastic moulding materials. To ascertain information, a preliminary probe was initiated and manufacturing premises of M/s Reliable Associates declared at Ground Floor, Plot No DP-45, Sector 12-D, North Industrial Area was physically verified, leading to the fact that no manufacturing facilities were
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exist on the premises while the electricity connection was disconnected. Subsequently, importer M/s Reliable Associates was requested to provide information regarding machinery installed supported by copies of utility bills to substantiate manufacturing of goods from the raw materials imported under SRO 670(I)/2013. Afterward, the importer M/s Reliable Associates provided the requisite information along with the copies of electricity bills of connection bearing Consumer No.400012863509 for the month of April, 2014. Subsequently, M/s K-Electric was requested to provide history of aforesaid consumer. M/s K-Electric informed that the aforesaid consumer was inactive since June 2001 and further informed that the consumer had applied for a new connection with case ID No. 9993678 which is under consideration. According to M/s K-Electric letter, it has been confirmed that as per record no bill has been issued to the consumer since November 1, 2013 to May 31, 2014. Scrutiny of the import record of M/s Reliable Associates also indicated that the Customs agent
M/s Ghadeer Enterprises was initially associated in the clearance of the consignments imported by M/s Reliable Associates. Meanwhile, information was received that one Hashim, appeared in connection with the Goods Declaration KAPW-HC-171176 filed by the M/s Winsome Packages and introduced himself as the representative of M/s Ghadeer Enterprises. Accordingly, the licensee of M/s Ghadeer Enterprises namely Muhammad Sadiq Jamani was called to explain authority for representing M/sWinsome Packages. The Customs agent Muhammad Sadiq Jamani stated that he was providing services to M/s Reliable Associates, M/s ShahabTraders, M/s VitalTrade, M/sWinsome Packages and M/s Royal Packages for the clearance of their consignments. Upon scrutiny of documents, it was revealed that the accused Muhammad Sadiq had wilfully and actively abetted in the clearance of a consignment invoiced to M/s Reliable Associates vide commercial invoice No. 3200035309 against LC No. 1013LC31896/2014, whereas the GD No KAPW-HC-170682 pertaining to bill of lading No.295400021543 was filed by
M/sWinsome Packages.The preliminary probe established that the accused importer namely Anop Kumar of M/sWinsome Packages and accused Muhammad Sadiq Jumani of M/s Ghadeer Enterprises associated with the group of importers were actively involved in the fraudulent import and clearance of goods and have committed an offence to defraud the national exchequer of revenue defined under Section 32, 32(A), 79, 192 of the Customs Act, 1969 punishable under clauses 14, 14(A), 47, 77 and 86 of Section 156(I) ibid read with the Section 3(b) and 6 of the SalesTax Act 1990 under Section 33 ibid and Section 148 of the IncomeTax Ordinance 2001. The AIB has arrested accused Muhammad Sadiq . On the other hand, the importers were of the view that R&D Section of MCC-Appraisement (East) had already performed the survey of the manufacturing units of importers M/s Reliable Associates and M/s ShahabTraders. “The case is baseless and an attempt to harass the importers as images of the manufacturing units were also kept with R&D Section ”, they added.
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SIALKOT 05
JULY 08 - JULY 14, 2014
ANF foils heroin smuggling bid at Islamabad airport
ISLAMABAD: The Anti-Narcotics Force (ANF) foiled a bid of heroin smuggling at Benazir Bhutto International Airport and arrested an accused. A passenger identified as Abid Sharif, a resident of Lahore, was arrested with 60 capsules filled with heroin, trying to smuggle heroin to Abu Dhabi. Meanwhile, the ANF also recovered 17kg hashish from a female passenger and arrested her.
collector assures exporters of refunds in first month of FY 2014-15 SIALKOT
ZAFAR MAlIk
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Sialkot Dry Port working round the clock in Ramadan ialkot Dry Port Trust is working round the clock in double shifts during the holy month of Ramadan for ensuring the on time clearance of the export cargo consignments. However, there will be breaks during the Iftaar and Sehar timings. Earlier, Sialkot Dry PortTrust Chairman Muhammad Ishaq Butt had told the Sialkot based exporters and importers during an important meeting that there will be round the clock service in two shifts at the port for ensuring the continuity of the immediate clearance of the export cargo consignments at the port from where these cargo consignments will be sent to Lahore, Islamabad and Peshawar Airports and to Karachi Port through customs bonded vehicles by road. He said that during the holy month of Ramadan Sialkot Dry Port will continue to facilitate the exporters and importers, as the first shift will work from 09:00 am to 06:00 pm and after the iftaar break and the second shift will work from 09:00 pm to 03:00 am at SDPT.
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Ishaq Butt elected pIDc chairman hairman All Pakistan Dry Ports Association Muhammad Ishaq Butt has been unanimously elected Chairman of Pakistan Industries Development Corporation (PIDC) in a recently held meeting of Board of Directors. The newly elected chairman has appreciated the government’s decisions that Chairman PIDC has been taken from private sector of Pakistan and assured that this move will bring positive change in country’s business sector as well. In 1997, Ishaq Butt was elected Chairman of Surgical Instruments Manufacturers Association of Pakistan (SIMAP). He was also elected President of SCCI in 2009. In 2011, he was elected Chairman of SDPT. Since 2012, he is Chairman of All Pakistan Dry Ports Association. —CT Report
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— Exclusive Customs Today photo
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odel Customs Collectorate Sialkot Collector Qurban Ali Khan has assured the Sialkot based surgical instruments manufacturers and exporters about the early clearance of their prolonged pending rebate claims cases worth Rs 800 million in the Jirst month of the Jiscal year 2014-15. He said that all out efforts would be made to Jlourish the surgical industry of Sialkot by taking the surgical manufacturers and exporters into conJidence. He said this while addressing an important meeting of surgical instruments manufacturers and exporters held at Surgical Instruments Manufacturers Association of Pakistan (SIMAP) here. Chairman SIMAP Bilal Ameen Chughtai, Secretary General Muhammad Amjad and senior customs ofJicials were also present on the occasion. Collector also stressed the need for making some effective and positive joint efforts to bridge the communication gap between the customs departments and surgical exporters, saying that this step was also vital to remove the hurdles from the way to promote the surgical exports from Sialkot and resolve their problems amicably. He pledged to work on this task to bridge this communicational gap on priority. He said that the Sialkot made world class surgical instruments were in great demand around the globe, but the surgical instruments manufacturers and exporters should also focus on non-traditional items. Earlier, addressing the meeting Chairman SIMAP Bilal Ameen Chughtai demanded increase in the rebate, saying that surgical industry of Sialkot was facing advanced technology related problems due to which the persisting rebate ratio of 4.86pc was nothing more than peanuts.
FBR Gujranwala region achieves its revenue target for June'14 ederal Board of Revenue has achieved its recovery target of Rs 1.2 billion set for the month of June 2014 by imposing tax emergency in the region, as the Board has collected Rs 700 million in share of income tax and withholding tax and Rs 500 million as sales tax from the defaulters during this special recovery campaign launched in the Gujranwala region. According to the senior FBR officials, the chronic defaulter Gujranwala Electric Power Company (Gepco) has paid its prolonged
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outstanding arrears of Rs 389 million to FBR as the Gepco had collected these dues from its customers in shape of sales tax and withholding tax. A major defaulter beverage company has also deposited its outstanding dues of Rs 100 million as sales tax and National Savings Center has also deposited Rs 20 million as income tax to FBR in Gujranwala region. Meanwhile, FBR has also issued the final recovery notices to all the small and big steel mill in Gujranwala region to ensure the early
payment of their outstanding arrears, (worth millions of rupees). The government had levied 17 per cent sales tax on all the steel smelters and 4 per cent sales tax surcharge on every steel mill unit. But, they had not yet paid their outstanding dues worth millions of rupees. FBR senior officials have also warned these units to clear their arrears; otherwise, FBR will freeze their bank accounts to recover their outstanding areas directly from their bank accounts.
SDPT, G-9 Forwarders sign MoU to facilitate Sialkot exports SIALKOT
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ialkot Dry Port Trust (SDPT) and G-9 Forwarders Group have inked a Memorandum of Understanding (MoU) for providing the better transportation services to the Sialkot exporters for their export consignments. SDPT Chairman Muhammad Ishaq Butt and Faraz Akram Awan (Chairman G-9 For-
warders Group) signed this pact. On this occasion, Chairman SDPT Muhammad Ishaq Butt told the participants of this MoU signing ceremony that this pact was a part of SDPT plan to accelerate the regional business activities. He added that under this MoU better transportation services would be provided to the importers and exporters of Sialkot, Daska, Wazirabad, Gujarat, Gujranwala and surrounding areas on cheaper rates, which would also be helpful to
The OneWindow Operation facilitates the exporters by ensuring clearance and dispatch of export consignments on the same day
promote the import and export businesses. Ishaq Butt revealed that SDPT has contributed in enhancement of exports to help strengthen the economy of Pakistan, saying that now this dry port has developed its own fleet of 100 customs bonded vehicles, the first largest bonded carriers in private sector. The One Window Operation has facilitated the exporters by ensuring clearance and dispatch of export consignments on the same day, he revealed.
— Exclusive Customs Today photos
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SPECIALREPORT
www.customstoday.com JULY 08 - JULY 14, 2014
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SPECIALREPORT 07
JULY 08 - JULY 14, 2014
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LAHORE
MIAN SHAFQAt SAeeD www.customstoday.com
he Anti-Narcotics Force (ANF) is truly a strategic institution, striving hard to eradicate drugs business entirely to save future of the country. The ANF has adopting various practical measures to root out trafJicking and peddling of drugs to keep the youth away from the menace to secure future of the nation. Anti-Narcotics Force Punjab Commander Brig Syed Mehmoodul Hassan Shah stated this during an exclusive interview with Customs Today here. Brig Shah discussed the history, importance, character and positive effects of the ANF and shed light on its efforts to eliminate narcotics business in Pakistan and its importance and effects at international level. He said that the ANF was truly a strategic institution whose real objective was to eradicate illicit drugs business entirely. While talking about policy statement he said, “The ANF is Jighting the war against drugs in Pakistan by conducting straight interdiction of drug supply in collaboration with different agencies included in Inter Agency Task Force following the approach of unity in conception, legislation and enforcement throughout the country. At provincial level, actions will be taken by the provincial police and the E&T Department. To prevent the use of drugs, the ANF and provincial governments will launch com-
prehensive anti-drugs awareness campaigns and will rehabilitate drug addicts. By 2017, the ANF will be deployed in all divisions of Pakistan to eradicate the menace of drugs from grass-roots level.” He further said that Afghanistan was the largest producer of opium, contributing 85 percent to the world’s total Poppy production. According to March 2013 UN survey, the production has been recorded to the tune of 95 per cent. Pakistan is geographically located at a place where neighbouring countries use it as transit for illicit activities. Drugs enter tribal areas and Khyber Pakhtunkhwa and spread to Punjab and Sindh. Brig Shah said that the ANF was working vigilantly to deal with ways the foreign powers were using for their illicit activities. That’s why ANF police stations have been established in major cities of Punjab and efforts are underway to increase manpower in these stations to ensure uprooting of the social evil completely. Brig Shah informed that the ANF personnel were present at all airports, dry ports and border areas particularly those of KPK. “Balochistan Coast Guards, Punjab Rangers and Sindh Rangers are also playing a pivotal role in countering drugs smuggling,” he revealed, adding that the ANF was playing a fundamental role in coordination with other forces through the Inter Agency Task Force (IATF) of Interior Ministry. Under the leadership of Director General ANF, the Punjab Police, Customs Anti-Smuggling Wings, Airport Security Force (ASF), the
Motorway Police and Railway Police have been sharing intelligence to curb the drugs trafJicking. He pointed out that the ANF had nothing to do with the drug addicts in the cities which primarily fell in the jurisdiction of local police. “The ANF is actually concerned with strategic planning to stop illicit drugs’ supply and wipe out the smugglers. By the grace of God, we have achieved success in that area, he added, adding that the ANF was honestly playing its role and striving to work more efJiciently in its domain. While talking about the ASF ofJicial at Sialkot airport who was involved in facilitating smuggling activities, he said that taking strict notice of the incident ASF has Jired him from the job and he is facing charges along with the other culprits. He further said that ANF’s conviction rate had always been 100 per cent and persons arrested with drugs’ smuggling have always got punished accordingly. In Punjab, during the current year from January to June, ANF seized 29 kg heroin, 100 kg hashish and 5 kg opium in Lahore; 12 kg heroin, 93 kg hashish and 34 kg opium in Multan; 11 kg heroin and 6 kg hashish in Sialkot; 6kg hashish in Faisalabad; and 47 kg heroin and 130 kg in Mianwali. In the same period, 79 cases were registered out of which challan was submitted against 47 cases while 32 were still under investigation. Meanwhile, in all the 34 cases decided by the CNS courts, the culprits were convicted. Though there hasn’t been any death penalty this year, there were 14 cases of life imprisonment and 24 cases of imprisonment up to 10 years or less. He appealed to the entire society to play their role in the elimination of the evil of drug abuse and keep a watchful eye on their family and children. He urged the people to not let the drug addicts fall at the hands of fate. Instead they should be helped to get rid of this horrible suffering.
By 2017, ANF will be deployed in all divisions of Pakistan to eradicate the menace of drugs
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08 EDITORIAL
JULY 08 - JULY 14, 2014
Founder & Chairman Zulfiqar Ali 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
well done FBR
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he FBR has collected Rs 324 billion more in fiscal year 2013-14 by collecting Rs 2270 billion against a collection of Rs 1946 billion in 2012-13 so the growth in revenue collection stood at 16 percent. In the last financial year of 2013-14 that ended on June 30, 2014 so far the FBR’s collection in accordance with provisional estimates was inching towards Rs 2270 billion. Although, the FBR has not yet released any official figures but its high-ups are sharing information that they have crossed Rs 2266 billion and moving towards collecting Rs 2270 billion in last financial year. The cleared cheques required clearance of State Bank of Pakistan as well as Auditor General of Pakistan so it took a while for finalizing the revenue collection figures. Within next few days the FBR’s collection figures would be finalized. The economists were estimating that the FBR’s collection could not cross Rs 2250 billion so it was achievement on the part of the tax machinery to go close to the revised tax target of Rs 2275 billion in last financial year. Keeping in view law and order situation, upheaval on political front as well as power outages, the collection of Rs 2270 billion can be considered an achievement on part of the FBR under the leadership of Tariq Bajwa and his team who rendered all-out efforts to get the desired results. Acknowledging the achievement of FBR’s machinery, Finance Minister Senator Ishaq Dar congratulated Chairman FBR Tariq Bajwa and his whole team who have worked hard to achieve the target for revenue collection during the last fiscal year 2013-14. He said that it’s only due to the commitment, dedication and hard work of the whole team that only in one year there has been an increase of over 16% in tax collection which is unprecedented in the history of Pakistan. Now the stage has come when the FBR will have to prepare a roadmap for achieving another ambitious tax collection target of RS 2810 billion for the current fiscal year 2014-15 that started from July 1, 2014. By achieving the last year target by and large, the FBR has protected the base of envisaging the current target of Rs 2810 billion. This is the time where the tax machinery should work for simplifying the procedures involved in filing returns and incentives should be given to the return filers as compared to the nonfilers. The taxpayers need to be facilitated by simplifying tax reporting so that people prefer to pay taxes rather than evading tax process.
Bringing retailers into tax net ISLAMABAD
SM HAIDeR
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ederal Board of Revenue has devised rules for implementing the taxation steps taken by the government through Finance Bill 2014-15. In a bid to bring 1.5 million retailers into tax net, FBR has notiJied rules of special procedures of Sales Tax after enactment of Finance Bill 2014-15. This is a step forward towards documentation of economy and completing the chain starting from manufacturers and ending at retailers’ stage. This area possesses such a huge potential. If tapped properly it can generate billions of rupees on annual basis. In the wake of undocumented economy, it is really hard for the tax managers to determine the exact turnover of the retailers so FBR has devised mechanism on the basis of which certain categories would be
brought into tax system this time. If the FBR fails in bringing the retailers into tax net this time then this chapter would be closed forever so the tax machinery should move ahead in careful manner in order to avoid politicization of this important issue. There are over 1.5 million retailers working in the country but their contribution for the national kitty is meager in terms of comparing their genuine incomes. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has asked the government time and again to bring retailers into tax net by imposing a Jixed tax that could generate Rs54 billion from all over the country. But the FBR does not expect such kind of huge revenues from retailers keeping in view the weak capacity of the tax machinery to collect tax from retailers spread all over the country. FBR will go ahead by imposing
tax on retailers in big metropolitans and in the Jirst stage only 10,000 to 15,000 units can be brought into the tax system. This system, if it succeeds, could be replicated in other cities and towns in coming years. According to notiJied rules, it has been made mandatory to install and operate Fiscal Electronic Cash Registers (FECRs) for issuing invoices to customers. Retailers shall provide seamless and real-time access of their FECRs data to the FBR and also allow onsite physical inspection as and when authorized by the Commissioner Inland Revenue having jurisdiction. Every retailer operating shall issue serially numbered invoices or, as the case may be, cash memos in respect of each supply made by him, manually or through electronic cash register, and from such date as may be speciJied by the Board, the invoices shall be issued through
Fiscal Electronic Cash Register. Five categories of retailers would be registered including retailer operating as a unit of a national or international chain of stores, retailer operating in an airconditioned shopping mall, plaza or centre, excluding kiosks; retailer who has a credit or debit card machine; a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds six hundred thousand rupees; wholesaler-cumretailer; engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers. Every retailer operating shall deposit the sales tax due along with his return on monthly basis in the manner prescribed in Chapter II of the Sales Tax Rules, 2006. A retailer operating under rule 6 shall not be required to Jile monthly sales tax return.
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LAHORE
JULY 08 - JULY 14, 2014
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customs seizes auto parts among other items worth Rs1.5m
LAHORE: Customs Anti-smuggling wing has seized non-customs duty paid auto parts, goods and articles in two different raids at Multan Road and Shahdara worth Rs 1.5 million. Anti-smuggling wing impounded goods like plastic beads, laces and others worth Rs 0.7 million coming from Peshawar during a raid at Shahdara. In another raid the anti-smuggling officials impounded auto parts worth Rs 0.8 million at Multan Road.
lHc fines petitioner for misleading against FBR ahore High Court has imposed a fine of Rs 100,000 on a petitioner for misleading the court about Federal Board of Revenue. Justice Ijaz ul Ahsan passed the orders while hearing a petition filed by Rana Ashiq Ali During the case hearing, the petitioner Rana Ashiq Ali alleged that Federal Board of Revenue was not providing certified copy of sales tax analysis report despite request at which stage the lawyers told the court that the petitioner was misleading the court. They pointed out that the petitioner had moved another petition and it was pending before Justice Abid Aziz Sheikh wherein the copy of said report was attached by him. The court took a strict notice of the situation and imposed a fine of Rs 100,000 on petitioner and directed him to deposit fine with dispensary of Lahore High Court Bar Association. —CT Report
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FBR recovers Rs 3.6 m from Anwar Steel Mills’ bank account BR’s Regional Tax office seized bank account of Anwar Steel Mills, recovering Rs 3.6 million as tax liability for the Tax Year 2011. The total amount of taxes owed by the mill was over Rs 10,363,000. However, FBR did not succeed in recovering Rs 6,763,000 due to insufficient balance in bank account of the company. Sources said that FBR team recovered the amount from the company’s account at Bank Alfalah Limited, Badami Bagh branch, Lahore. Earlier, RTO Lahore recovered around Rs 18 million seizing bank account of Eden Housing Limited. —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
Lahore Customs Intelligence foils bid to smuggle items worth Rs80m
Tax evasion, concealing assets: FBR serves notices on Qadri, his charities
LAHORE
M HAYAt
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irectorate of Intelligence and Investigation-Customs has conJiscated four trucks fully loaded with smuggled goods and articles worth Rs 80 million in Lahore. OfJicial sources said that the Directorate of Intelligence and Investigation-Customs, Lahore seized articles including Plastic granules, auto parts, air conditioners, chains of motorcycles and miscellaneous goods from the trucks. They added that the directorate launched an FIR against Nabi Bakhash, who hails from Balochistan. They said that the Customs Court cancelled interim bail of the accused. Nevertheless, he succeeded in Jleeing from the court room after the cancellation of the interim bail. A top ofJicial of Directorate of Intelligence and Investigation-Customs, Lahore told Customs Today that the directorate was raiding various places to arrest the accused. Meanwhile, Anti-Smuggling Wing of Model Customs Collectorate Lahore has seized 300 non- duty paid bags of dry milk at the Sagian interchange. OfJicial sources said that the Anti-smuggling scout of Customs impounded 7,000 kg dry milk worth one million rupees during an attempt by the smugglers to enter Lahore through Sagian Bridge. They said that dry milk was loaded in a truck being driven by Yaqoob Khan, a resident of Peshawar,
BR has served notices on Idara-eMinhajul Quran, Minhahul Quran Welfare Foundation, Pakistan Awami Tehreek (PAT) Chief Dr Tahirul Qadri and others on charges of tax evasion, concealing assets and using charity funds for a political agenda. According to reports, the decision to serve notices was taken in a high-level meeting in which the Federal Investigation Agency (FIA) shared account details of the above institutions and Dr Qadri with the participants. Meanwhile, sources said that record pertaining to Idara-e-Minhajul Quran, Minhajul Quran Welfare Foundation was handed over to FBR for further proceedings on account of tax evasion and concealed amounts/assets during tax returns. They said the Pakistani authorities have also decided to share findings of the probe – conducted by the FIA, FBR and State Bank of Pakistan’s (SBP) Financial Management Unit (FMU) – with Canada and United Kingdom and some European states, where Dr Qadri’s NGOs are registered as charity organisations. —CT Report
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who failed to produce required document. Owner of the dry milk has not been identiJied yet. Anti-smuggling authorities have registered a case and investigations are underway. Meanwhile, ANF Lahore has recovered 8.4 kg charas from a house in Islamapura Mohallah, Lahore and arrested accused Ghulam Sarawar alias Goga. Meanwhile, Anti-Smuggling Wing of Model Customs Collectorate Lahore has recovered Rs 4 million from traders who are accused of trying to evade duties/taxes on imports. OfJicial sources said that the Antismuggling wing seized miscella-
neous goods including plastic granules, 17 generators of various capacities, old auto-parts and others worth Rs 3,163,929 and handbags and shoulder bags for ladies worth Rs 814,864. Meanwhile, Anti-smuggling unit of Model Customs Collectorate Lahore has seized 2,000 kg dry milk and a container full of miscellaneous goods in two different raids. Sources said that the ofJicials impounded 2,000 kg dry milk at Shera Kott while container full of miscellaneous goods and articles including diapers and glass beads at the Sagian Interchange.
Reviewing taxation procedures to save precious time To, Shahid Hussain Asad, FBR Member IR (Policy), Islamabad Dear Sir, I would like to draw your attention towards a sensitive issue pertaining to the taxpayers, as most of them are facing hardship to adjust sales tax paid through Bill of Additional Duty (BOAD) while e-Jiling the sales tax return through the adjustment is in accordance with section 7(2)(ii) of the Sales Tax Act, 1990. A registered person is entitled to deduct input tax paid through the BOAD from output tax as he holds the Original Bill of Entry or Goods Declaration in this name, showing his sales tax registration number and duly cleared by the Customs Authority. In addition to this, certain manu-
facturers are also facing severe hardships in claiming import bill of entries wherein FED in sales tax mode has been paid at import stage on the import of vegetable and cooking oil. The matter has been brought to your attention, after the numerous follow ups by way of emails as well as telephone calls by our members to the relevant authorities in PRAL who stated that they cannot do anything unless the matter is directed to them by your ofJice or any other competent FBR authority. As you are aware, sales tax (along with other taxes and duties) is paid through the BOAD in the following cases: (a) Where the taxpayer is required to pay due to the difference in currency exchange rate or weight of the consignment etc. (b) Imported raw material could not be used in manufacturing items of
export with the prescribed time limit as per conditions of the Sales Tax SRO 492(I)/2009 dated June 13, 2009 and Customs SRO 490(I)/2001 dated June 18, 2001 respectively. The registered exporter-cum-manufacturers are allowed to import the speciJied raw material duty free and sales tax free for manufacturing items for export under SRO 492 and 490 respectively. In this connection, we would inform you that the input tax adjustment in respect of sales tax/ FED in sales tax mode paid through BOADs or through Bill of Imports are neither being automatically uploaded by the Annexure B to the sales tax return available at FBR’s web portal nor these can be entered manually by the taxpayers. Hence, such restriction costs not only the taxpayers but also Federal Board of Revenue when taxpayer fails to avail input tax credit against output tax liability and ulti-
mately pursues towards the lengthy refund process. We would request you to make necessary adjustment in e-Jiling programming enabling the taxpayers to enter such BOAD and Bills of Import relating to FED in sales tax mode in Annexure B until such time the same is linked with the Customs data. We earnestly trust your good self will Jind the above in order and that you would be pleased to resolve the matter which will enable taxpayers to claim the input tax credit, at an early date, in order to avoid blockage of the funds leading to unnecessary refunds. I hope that you will take keen interest into the matter and do what is most needed in this regard. Yours sincerely, Muhammad Aleem, General Secretary KTBA, Karachi
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10 PICTORIAL
JULY 08 - JULY 14, 2014
RccI for expediting work on gwadar port
RAWALPINDI: The government must take development work on the Gwadar Port seriously and should step up work on the Gwadar-Kashgar Road link, demanded by the Rawalpindi Chamber of Commerce and Industry (RCCI). An RCCI delegation, led by its President Dr Shimail Daud Arain, discussed the issue with Balochistan Governor Muhammad Khan Achakzai at the Balochistan House in Islamabad. Senior Vice President Malik Shahid Saleem, Vice President Muhammad Alam Chughtai, Executive Member Tariq Mughal, Chaudhry Jameel and Khursheed Barlas were part of the delegation.
chief collector vows cohesive action against smugglers
HYDERABAD
ASlAM ANJUM QUReSHI www.customstoday.com
n its campaign to check and curb the menace of smuggling of various items, Model Customs Collectorate of Hyderabad has made a total number of 38 seizures of various smuggled items during the last three and half months worth over Rs 100 million. During the period from mid March to June 30, dierent items including vehicles/motorcycles, cloth, tyres and tubes, auto parts, cigarettes, electronic items, cell phones, blankets, gutka, solar cell, CNG cylinders, computer accessories, computer tablets, almonds etc. were seized by the three Special Anti Smuggling Squads of MCC, Hyderabad. Besides, 72,142 litres HSD worth Rs 7.9 million 99,000 litres black oil (rubber processing oil), 1,515 litres engine oil worth Rs 6.6 million and 55,170 kg LPG worth Rs 3.7 million were also seized during the period. Moreover, MCC Hyderabad has produced remarkable results in its anti-smuggling operations. Three Special Anti-Smuggling Squads of the Collectorate have made a total number of 184 seizures of various smuggled items worth Rs 280.3 million. During FY 2013-14 a total quantity of 79,042 litres of smuggled HSD worth Rs 8.6 million, 70 NDP/vehicles/motorcycles worth Rs 78.1 million, tyres & tubes worth Rs 13 million, auto parts worth Rs 6.2 million, electronic items worth Rs 16.6 million, gutka worth Rs 24 million and various other items valuing at Rs 134.1 million have been seized. Model Customs Collectorate Hyderabad Collector Muhammad Ibrahim Vighio has issued strict instructions to all the antismuggling formations for utilization of all resources to curb the menace of smuggling.
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chief collector enforcement-South M Nazim Saleem
Mcc preventive collector tariq Huda
Additional collector-Headquarters-I Shafqat Niazi
Assistant collector Headquarters-I wasif Malik
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hief Collector of EnforcementSouth Muhammad Nazim Saleem held a meeting with the ofJicers of Preventive Collectorate to review the measures taken regarding various anti-smuggling activities and revenue generation. The meeting was attended by the MCC Preventive Collector Syed Muhammad Tariq Huda, Additional Collector-Headquarters-I Shafqat Ali Khan Niazi, Assistant Collector Headquarters-I Muhammad Wasif Malik and other senior ofJicials of Pakistan Customs. The Chief Collector-Enforcement-South stressed the Collector Preventive and other ofJicers to ensure speedy revenue collection from oil and petroleum sections. During the meeting, it was decided that strict measures through a comprehensive strategy would be taken against the smuggling activities and Anti-Smuggling Organization (ASO) would make more effective efforts in order to curb the illegal activities and to generate revenue from legal means of trade. Preventive ofJicers agreed upon cohesive action against the smugglers in order to increase the revenue and curb the anti-smuggling activities.
MCC Hyderabad makes dozens of seizures in 3 months
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NATIONAL 11
JULY 08 - JULY 14, 2014
punjab puts off gSt levy on private schools until next budget
LAHORE: Punjab Minister for Finance, Excise and Taxation Mian Mujtaba Shujaur Rehman declared that levy of proposed GST on private schools, charging more than Rs5,000 fee per student, had been deferred until next budget. The minister made the remarks at a conference organized by All Pakistan Private Schools Management Association ‘apparently’ in bid to placate the representatives of Private Schools who criticised the government for what they called unjust taxes.
peshawar dry port lacks basic facilities PESHAWAR
FBR promotes four inspectors in RTO Peshawar
NADeR kHAN
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espite massive burden of importing and exporting goods, Peshawar dry port still lacks basic facilities of shelter for customers, customs agents and labourers who keep waiting for loading and unloading process of containers in raging heat under open sky. It has been witnessed at Peshawar dry port that labourers and customs agents wait in scorching Sun having no shelter to protect themselves from summer heat. There is not a single washroom or any canteen inside the dry port. Some labourers and customs agents are preparing their food in extremely polluted environment where dust Jlows through the air. Talking to Cus-
PESHAWAR
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F toms Today, one of the custom agents said that he was visiting the dry port every morning for clearing the goods but he was facing numerous problems. He said that the dry port needs modernization and proper facili-
ties as hundred of labourers, drivers and custom agents are working there to export and import goods. However, there is no clean drinking water, proper washrooms, shades or waiting lounge.
He said that it is responsibility of federal government and FBR altogether to take steps for the development of Peshawar dry port which is consistently playing important role in the economy of the country.
MCC Multan generates over Rs36.2b during FY 2013-14 MULTAN
IMRAN AlI kHAN
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odel Customs Collectorate of Multan has generated revenue to the tune of Rs 36,233 million by the end of Jiscal year 2013-14 showing ten per cent increase in tax collection over the previous Jiscal year. MCC Multan has collected revenue of 10,705 million in share of customs duty during Jiscal year 2013-2014. The collectorate collected sales tax of 24,912 million and withholding tax worth 310 million in the same period. The collectorate collected revenue of 306 million in share of federal excise duty in Jiscal year 2013-2014.
our inspectors of Federal Board of Revenue in Khyber Pukhtunkhwa have been promoted as Inland Revenue officers. Sources in Regional Tax Office, Peshawar said that those who were promoted included Inspector Mohammad Rafiq, Inspector Rastbaz Khan, Inspector Mohammad Maroof and Inspector Persan Khan. All of the four inspectors belonged to Region Tax Office, Peshawar.
Although MCC Multan witnessed 10 per cent growth in tax collection during the Jiscal year ending June 30 but could not achieve the set target. There is approximately 10 per cent shortfall in set target of revenue collection of this Jiscal year. Model Customs Collectorate of Multan controls four divisions comprising Dera Ghazi Khan, Multan, Bahawalpur and Sahiwal. Major initiatives were taken by the customs department to increase the revenue but due to low import volume they were unable to achieve the target. Sources said that lots of measures need to be taken to increase the revenue by adjusting government discriminatory tax policies. There is no accurate evaluation system in customs
department for import items which also leads towards low customs duty collection, they added. It is still an encouraging event for Pakistan Customs that the revenue collection at MCC Multan increased by 10 per cent as compared to previous Jiscal year. There are some initiatives needed to be taken by Pakistan Customs to increase the revenue generation including utilization of help from Punjab police, Frontier Corps in Balochistan, political agents of Fort Munro and other law enforcing agencies to stop smuggling of different goods from Iran. Check posts created at Sindh-Punjab border to control smuggling near Sadiqabad need to be upgraded in this regard, sources said.
Oil, ghee industries seek withdrawal of taxes on local sale, purchase he oil and ghee industry has showed concerns over tax notices issued on local sale and purchase. Owners of banaspati ghee and oil mills industry have demanded Federal board of revenue to withdraw tax notices issued recently by the Directorate General of Intelligence and Investigations-Customs regarding sale and purchase at country level. Oil Mills and banaspati Association have demanded that the government should rather provide relief to the edible oil industry instead of the new taxes imposed on the oil industry which will affect their manufacturing capacity. Customs Intelligence has directed all mills owners of oils and banaspati to submit the details of sales and purchase within country. The millers have said that Federal Board of Revenue may be trying to reform tax policy but it is unfair to charge taxes over items which are already taxed. They said that Oil mills and banaspati mills pay taxes in three phases including purchase of raw materials, when manufacturing process begins and after completion of furnished goods. The oil and ghee industry is seeking direct intervention of Federal Board of Revenue Chairman Tariq Bajwa to withdraw notices issued for recovery of sales tax on local sales and purchase of manufactured products. —CT Report
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FtA/ptA ceRtIFIcAteS
Chief Collector for addressing importers’ issues KARACHI
SOHAIl RAB kHAN www.customstoday.com
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hief Collector of Appraisement-South Nasir Masroor Ahmed has asked the ofJicers concerned to ensure solution of the issues faced by the genuine importers in dealing with PTA/FTA certiJicates. It may be mentioned here that the importers were facing problems pertaining to PTA and FTA signed with Indonesia, Malaysia and Singapore. Karachi Chamber of Commerce and Industry (KCCI) President Aamir Abdullah Zaki conJirmed that the Chief Collector of Appraisement-South has issued directives in order to solve the importers’ issues pertaining to FTA/PTA. President KCCI further informed Customs Today that the importers were facing multiple problems in exporting and importing their consignments through FTA/PTA to Malaysia, Indonesia and Singapore in particular. Pakistan Customs through a public notice No. 9(2) MCC/Public Notice/06/365 had advised all importers, clearing agents to submit original Free Trade Agreement/Preferential Trade Agreement certiJicates at dedicated counter of the Collectorate within three
days from the date of release of the consignments in those cases where Goods Declarations (GDs) under FTA/PTA claim Jiled by them is cleared through Green Channel. It was further stated that the Goods Declarations (GDs) would be re-assessed and recovery proceedings would be initiated forthwith in case of non-submission of FTA/PTA certiJicates by the importers and clearing agents. President KCCI has hailed the said step of Pakistan Customs and stated that genuineness of the importers/exporters would be identiJied through the submission of original FTA/PTA certiJicates.
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