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PAKIStAN’S FIRSt INDEPtH NEWSPAPER ON CuStOMS
Vol 2 Issue No. 22
Karachi, tue june 17 - Mon june 23, 2014
Weekly
Regd. No, MC-1381
REjECtING PLEA
FederalTax Ombudsman Abdur Rauf Chaudhry rejects Transparency International Pakistan’s allegations levelled against FBR officials. | SEE PAGE 03 |
Junior Customs officials await due promotions for 3 years Customs Employees Association presents 12 demands before FBR high-ups KARACHI
SOHAIL RAB KHAN www.customstoday.com
tIGHtENING NOOSE
FBR is tightening noose around tax evaders including people who pay less tax despite owing more to national exchequer, Bajwa tells Senate committee. | SEE PAGE 05 | ENHANCING ExPORtS
Government should consult the business community for the redressal of their grievances and elimination of anomalies, says TDAP Chief SM Muneer. | SEE PAGE 09 | REDuCING Duty
5 per cent decrease in customs duty will certainly put a positive impact on imports while curbing smuggling, mis-declaration and tax evasion, says Mian Zahid Hussain. | SEE PAGE 06 |
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espite clear directives of the Supreme Court of Pakistan and Finance Division, Government of Pakistan, 248 servants of Pakistan Customs including sepoys, hawaldars, record suppliers, lab attendants and drivers are waiting for their due promotions from BPS 3 to BPS 5 and BPS 5 to BPS 7 for last three years. Despite serving for 20 to 41 years, the junior staffers in the Collectorates of MCC Appraisement-West, MCC AppraisementEast and MCC Port Qasim have been deprived of their due promotion. In this regard, General Secretary of Pakistan Customs Employees Association, Syed Aftab Hussain Shah Hamdani informed Customs Today that despite clear directives issued by the Revenue Division-FBR in the year 2011, 2012 and 2013 in order to upgradation/promotion of junior staffers, the authorities concerned of the Collectorates did not implement the said orders in its true spirit. Hamdani further told this scribe that the promotions of junior customs ofOicials including sepoys and hawaldars have not been implemented in the Collectorates of Karachi, while the junior customs ofOicials got promotions in all other Collectorates of the country. He further revealed that the record suppliers, lab attendants and drivers possessed LLB and BSc degrees; still, they were waiting for their promotions for the last three years and many of them have retired in the same grades
Gen Secretary Syed Aftab Hussain Shah Hamdani which they got at the time of recruitment. He appealed to the authorities concerned to take immediate action in this regard to boost morale of the junior customs staffers. Meanwhile, General Secretary of Karachi Customs Employees Association, Syed Aftab Hussain Shah Hamdani has put forward a 12-point Charter of Demands to the high-ups of Customs and FBR. The charter consists of 12 demands for betterment and facilitation of the junior Customs ofOicials including sepoys, clerks, laboratory assistants, drivers and others. The demands included up-gradation of pay scale of drivers from BPS 5 to BPS 7 and promotion of senior drivers from BPS 7 to BPS 9; promotion of the educated Class-four employees, experienced clerks, sepoys and RS Laboratory attendants to the post of Lower Divisional Clerk (LDC); allowing the educated and experienced clerks, hawaldars and sepoys to participate in the
Despite serving for 20 to 41 years, the junior staffers in the Collectorates of MCC Appraisement-West, MCC AppraisementEast and MCC Port Qasim are deprived of their due promotions
President Misal Khan Bangash departmental exams of PO-EO; redressing the issues of getting service books and payroll slips after the retirement of the employees by SR Cell Section; ensuring transparent distribution of reward money on the time of annual budget and paying reward money equal to 2-times of the basic salary of each employee; increasing the house-hiring fund of the lower grade employees deployed at MCC AppraisementEast, West, MCC Port Qasim, MCC PaCCs and MCC Exports; increase in allocated medical funds for the families of in-service, retired and deceased employees; making efforts to rectify the record of GP Fund Box Number in AGPR record; restore increment and washing allowance of the sepoys' uniform; bring back the Customs Welfare Shop in Customs House again and giving it the status of utility store and announcing sonquota for the retired employees of Pakistan Customs in the department.
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NATIONAL
JUNE 17 - JUNE 23, 2014
APMSIDA demands reduction in duty on import of motorcycles’ spare parts
KARACHI: All Pakistan Motorcycle Spare Parts Importers and Dealers Association (APMSPIDA) has demanded reduction in 35 per cent customs duty implemented by the federal government in Budget 2014-15 on import of motorcycle spare parts. APMSPIDA office bearers have expressed deep concerns demanding the government to reduce duty by 10 per cent. They said that high customs duty will affect the import and it will certainly put an extra burden on the pockets of middle and poor class people, as most of them use motorcycles as means of transportation.
ISLAMABAD
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BR has terminated from service 150 employees of its subsidiary Pakistan Revenue and Automation Limited (PRAL), fuelling apprehensions about the adverse impact on the performance of the department. Among those terminated employees are data entry operators and officials who were performing basic and important jobs. Currently, the PRAL is playing a crucial role in receiving tax returns online from the taxpayers which reduces taxpayers’direct interaction with tax officials, minimising chances of corruption. Sources in the FBR said that the decision‘appeared’to be a political one rather than an administrative.The decision will affect the reception of online tax returns in the most negative way, they added.The sources also revealed that despite filing of tax returns by FBR officials, their names were not included in the list of return filers due to which they had to face embarrassment as their names were enlisted among the few non-filing officials. Such officials blamed PRAL for their embarrassment. FBR is set to embark on a campaign for e-filing of tax returns from September this year. If the record of data entry is not prepared precisely, it will add to the troubles of hundreds of thousands of tax return filers who would receive noncompliance notices despite filing their returns due to anomalies created by staff shortage which can lock the FBR and return filers in a legal battle. It is to be noted that under CAPE project, the PRAL and National Bank of Pakistan are providing online return filing service through e-portal. International financial institutions had provided funds for the establishment for PRAL and its eproject. However, later the commitment was withdrawn.
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LPA, land ports in the making to boost trade: Dastgir
Importers concerned over 100 stuck consignments
Regulatory authorities would be formed to enhance linkage and cooperation among various agencies working at land ports to create harmony among them ISLAMABAD
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Land Port Authority (LPA) will be established to facilitate the promotion of trade through land routes with all regional countries including India while modern infrastructure will be developed at Chaman, Torkham and Wagah check-points to boost trade. Moreover, land ports will also be established at Taftan and MonabaoKhokhropar to channelize regional trade. This was declared by Federal Commerce Minister Khurram Dastgir while addressing a joint press conference along with Textile Minister Abbas Khan Afridi here. Dastgir said that the proposed land ports would be directly linked to the Federal Board of Revenue through modern Information Technology, adding that regulatory authorities would be formed to enhance linkage and cooperation among various agencies working at land ports to create harmony among them. He claimed that trade with India was in the favour of Pakistan and the arch-rival would be granted non-discriminatory status once the new government took over reins in the neighbouring country, adding that it may take a few months. The Commerce Minister said that a new model of export promo-
Land ports will also be established at taftan and Monabao-Khokhropar to channelize regional trade tion would be introduced in Pakistan. He, however, admitted that there was no mechanism for boosting exports at the moment, adding that currently Rs 20 billion of the export development fund was stuck with the Finance Ministry. Dastgir pointed out that the best way to end corruption was constant monitoring. “We can an-
ver 100 consignments of textile fabric have been stuck at different ports and terminals including Karachi International ContainersTerminal (KICT), Pakistan International Containers Terminal (PICT) and Port Qasim International ContainersTerminal (QICT) for the last 20 days. Importers have expressed their deep concerns over the ongoing situation and were of the view that they may have to face losses worth millions of rupees due to delay in clearance of the consignments. Sharing their views with Customs Today, they said that Pakistan Customs authorities have sent all the consignments of textile fabric for examination and laboratory test in order to determine the composition of the blended fabric. “The laboratory staff is already facing shortage of manpower while the examination staffers are asking for speedmoney against the clearance of the consignments,” they alleged. The importers were of the view that they do not have any reservations over holding the consignments, but delay in clearance of the consignments produces financial loss to them as well as creating hindrance in their business activities. “We have to forward our consignments to the parties in open market before holy month of Ramadan. Failure in terms of not fulfilling the demand in the open market will make us suffer millions of rupees as loss,” the importers added. It is pertinent to mention here that FBR may face billions of rupees revenue shortage in case of non-depositing of customs duty worth Rs 200 million in case of non-clearance of textile fabric consignments. Furthermore, Collector Port Muhammad Bin Qasim, Dr Owais Jawwad Agha informed Customs Today that there was no pendency of the consignments of textile fabric or any other consignment at QICT. However, if any importers were facing problem in case of clearance of the consignments they could contact immediately the Collector’s Office. —CT Report
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— Exclusive Customs Today photo
150 PRAL employees shown the door
nounce traders-friendly policies but in the end, it is other departments who enforce these policies,” he informed. Speaking on the occasion, Textile Minister Abbas Afridi said that a new five-year textile policy will be announced in July 2014 and new variety of BT cotton would also be approved for sowing.
Collector seeks security for Customs officials He said further investigations of all such previous consignments were underway in the Collectorate. While in some cases, criminal proceedings had also been initiated against M/s. Ikram International Services. The Collector said that soon after knowing arrest of the Principal Appraiser, he contacted the police high-ups including the IG Punjab Police and got him released from the police custody. In Addition, Customs Federal Revenue Alliance Union Lahore and Federal Revenue Alliance Employees Union FBR Pakistan have strongly condemned unlawful abduction of Lahore Dry Port’s
— Exclusive Customs Today photo
From page 12
Principal appraiser Malik Azizur Rehman
Principal Appraiser by Punjab Police in connivance with tax evading importers and clearing agents. Customs Federal Revenue Alliance Employees Union Lahore President Ameer Haider condemned the unlawful arrest and harassment of the Principal Appraiser at the hand of Punjab police. He demanded that Chief Minister Punjab should take notice of corrupt practices of the police. Principal Appraiser Malik Azizur Rehman is an honest officer of Customs department and the Customs Union will stand by every honest official of the department, he added. FBR Revenue Alliance Pakistan President Mian Qayoom said that the issue will be raised at every level and the Alliance will stand by its members in hour of need. He demanded the government to take action against such black sheep among the customs agents and cancel their licenses.
Principal Appraiser made 6 contravention cases involving Rs 18.5m in three weeks
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ISLAMABAD 03
JUNE 17 - JUNE 23, 2014
Another vehicle imported on fake MoC letter recovered
KARACHI: MCC Appraisement-West has recovered another vehicle, Mercedes Benz C-200, Model 2008, imported on fake letter of Ministry of Commerce, which makes total of confiscated vehicles up to four. Three more vehicles remain. AIB Section is making all-out efforts for the recovery of illegal imported vehicles, said an official. The clearing agent M/s Trade Link Services International has voluntarily handed over the illegal imported vehicle which was in use of the management of an influential and famous construction company.
Flouting rules
FBR reservations: Govt undertakes revision of FTAs, PTAs
FtOrejectstIpleaagainstFBRbabus
ISLAMABAD
ISLAMABAD
CuStOMS tODAy REPORt
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he Federal government has decided to reconsider the status of all standing Free Trade Agreements (FTA) and Preferential Trade Agreements (PTA) signed with different countries including China. Currently FTA-2 with China is also under consideration. As per details, the government has taken the decision following the Federal Board of Revenue reservations regarding all these agreements. The board has pinpointed different procedural loopholes and shortcomings that have been depriving the national exchequer of invaluable revenue. FBR Chairman Tariq Bajwa is of the view that the FTAs and PTAs are more favourable to other countries than Pakistan. The FBR report has mentioned that in particular those businessmen who are interested in working with Chinese companies and investors in joint ventures have complained that their counterparts did not pay any attention to projects where the manufacturing of goods is meant for export to China. The Federal government has said that the FTAs and PTAs were signed in haste. The internal audit of previous projects of the Trade Ministry has been instigated. Furthermore, all the stakeholders will be taken aboard prior to the signing of any new agreement. Therefore, Pakistan has informed all those governments with which the country has signed FTAs and PTAs that the previous agreements with the respective governments will be revised and Pakistan’s interests will be paid proper and equal attention.
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MuHAMMAD FAIZAN
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ederal Tax Ombudsman Abdur Rauf Chaudhry rejected the Transparency International Pakistan allegations leveled against FBR ofOicials, alleging that these ofOicials had bypassed rules and regulations of international supply tenders by granting GST zero rating to particular individuals, causing Rs12 billion loss to national exchequer. However, FTO Chaudhry ruled that the Federal Board of Revenue had failed to explain its legal stance in this regard, which was tantamount to maladministration. In his judgment on the Transparency International Pakistan complaint, the FTO directed the FBR to inform all its Oield formation ofOices about the legal status and rules and regulations regarding such matters so that there could be no confusion in such cases and a consolidated policy could be adopted. The FBR had taken the stance that through a letter written on April 13, 2010, the GST zero rating had been announced on international supply tenders and the facility was equally available to all supplies including local ones. The reason explained by FBR for writing the letter was that according to Section (iv) of Fifth Schedule of Sales Tax Act 1990, the GST rate on contracts of international supply tenders was reduced to zero from 1997 to June 2012. Later, the duration, under some qualiOications, was extended to 2013, however, the Oield formations could not be conveyed the development which caused confusion and problems for the Oield formations. During the hearing of the IT complaint, it came to light through information provided by various LTUs and RTOs that in the matter of supplies, a similar and linear policy was not being acted upon. The FBR maintained that the Transparency International (TI) Pakistan was informed of the situation through a letter to which neither it had sought no explanation, nor did it raise any objection. The TI-Pakistan maintained that some FBR ofOicials, without taking into consideration the legal status of the letter written by FBR in 2010, acted
— Exclusive Customs Today photo
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FTO seeks action against non-filer officials he Federal Tax Ombudsman (FTO) has asked the Federal Board of Revenue (FBR) to take action against its officers who have failed to submit their tax returns/declaration of assets. The FTO issued the directives while taking up a petition filed by a citizen Waheed Shahzad Butt under Freedom of Information Ordinance, 2002. On the other hand, the FBR has termed it a very sensitive issue and shows reluctance to provide particulars of IRS/PCS officials who have failed to submit their tax returns/declaration of assets within time. It is to be recalled that the FBR published the names of some IRS/PCS officials who have failed to submit their assets/income declarations. PetitionerWaheed Shahzad Butt is of the view that the federal government is unable to ensure its taxation measures within the revenue collecting agency (FBR) and following footsteps of some parliamentarians, many FBR officers have not submitted declarations of income/assets since many
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under pressure and issued Orders-in Original. The TI submitted in its complaint that letters were dispatched to FBR twice for seeking explanation regarding the abovementioned matter but no re-
years while it is mandatory for every government servant to submit income/assets declaration. According to the petitioner, he had written a letter to the FBR Facilitation andTaxpayer Education (FATE) Member, requesting for provision of certain data in light of Section 12 of the Freedom of Information Ordinance, 2002.The FBR is paying no heed to entertain applications by general public under the Freedom of Information Ordinance, 2002, therefore, on silence from the FBR, he lodged a complaint before the FTO under Freedom of Information Ordinance, 2002. Waheed further added that FBR officers, who themselves did not abide by the income tax law had also started issuing non-filing of returns notices with threat of penalties to the taxpayers/citizens. After the amendments made in the IncomeTax Ordinance, 2001 vide Finance Act, 2013 taxpayers having an income of Rs1,000,000 and above have to file income tax returns along with wealth statements for tax year 2013. However, the FBR is unable to ensure its taxation measures within the department. —CT Report ply was received. On the other hand, the FBR was of the view that it had responded the TI-Pakistan in writing including the letter written to the FBR Chairman.
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04 NATIONAL
JUNE 17 - JUNE 23, 2014
Customs values of headphones issued
KARACHI: Directorate General of Customs Valuation has issued Valuation Ruling no.676/2014 for Customs values of headphones. Customs value of headphones of international brands (Creative, Bosch, Logitech, Philips, Toshiba, Sony, Beats, Samsung, Nokia, LG, Canon and Yamaha) from China having PCT heading 8518.3000 and proposed PCT code for WeBOC 8518.3000.1000 has been fixed at $ 4.70 per piece. Value of headphones having PCT heading 8518.3000 and proposed PCT code for WeBOC 8518.3000.1100 has been fixed at $ 0.95 per piece.
esearch and Development (R&D) Section of Model Customs Collectorate of Appraisement-East has recovered an amount of Rs17,785,955 while detecting 12 cases of mis-declaration, non-application of valuation rulings, misuse of SROs and misdeclaration of PCT classification in the month of May, 2014. The R&D Section of MCC AppraisementEast has recovered an amount of Rs 188,473 on mis-declaration of value on assorted toys; Rs 1,026,858 on mis-declaration in glazing powder consignment; Rs 557,033 on charge of mis-declaration of PCT classification in high tensile nut bolt consignments; Rs 495,048 on non-application of Valuation Ruling No.659/14 on tyres and tubes consignments; recovered an amount of Rs 599,009 on value assessed by R&D through data on bed-sheet consignments. The R&D Section has also recovered an amount of Rs 353,231 on misuse of SROs 567(I)/2006 and 551(I)/2008 on the consignments of pharmaceutical raw material; Rs 428,378 on misuse of SROs 567(I)/2006 and 551(I)/2008 from two consignments of Ciprofloxacin; recovered an amount of Rs 560,282 on mis-declaration of PCT classification on consignment of wood practical board penal. It has also collected an amount of Rs 87,042 on mis-declaration of PCT classification on the consignments of PVC tape; Rs 119,912 on violation of SRO 693(I)/2006 on import of auto accessories consignments; recovered an amount of Rs 13,370,688 on non-application of Valuation Ruling No.496/2012 on 19 consignments of Dove Soap. It is pertinent to mention here that the R&D Section is to recover an amount of Rs 36,620,308 from different importers on violation of advance income tax, inadmissible exemption of customs duty and sales tax under SRO 567(I)/2006, SRO 551(I)/2008, SRO 727(I)/2011 and SRO 1125(I)/2011 on various consignments of carpets, Ciprofloxacin, energy saver lamps and miscellaneous items. —CT Report
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Directorate to link data of SBP,TDAP with Customs via EDI he Directorate of Reforms and Automation is going to evolve a plan in order to connect the date of SBP, TDAP and other national organizations with Pakistan Customs through Electronic Data Interchange (EDI). Sources informed Customs Today that the WeBOC has introduced the facility of using EDI for facilitating the trade. They further told this scribe that the Directorate of Reforms and Automation has completely connected all sea-ports including KICT, PICT, KPT, Port Qasim and all off-dock terminals including AICT, BOML, Pak Shaheen and others with EDI by April, 2014. Sources further said that the upgradation of modules in transit trade will take three to six months due to the complex information in transit trade modules. —CT Report
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Post-budgetseminar:Expertsterm revenuetargetdifficult,butachievable
— Exclusive Customs Today photos
Tax evasion: R&D Section recovers over Rs17.7m
Chief Commissioner Karachi Rehmatullah Khan Wazir KARACHI
CuStOMS tODAy REPORt www.customstoday.com
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he CPE Committee of the Karachi Tax Bar Association organised a post budget seminar to discuss and deliberate on the possible consequences of the Federal Budget 2014-15. The revenue collection target of Rs2.81 trillion assigned to the Federal Board of Revenue (FBR) for the Oiscal year 2014-15 is difOicult but achievable, considering projected economic growth, a senior tax ofOicial said. “The rise in inOlation and projected development expenditure will help the revenue body achieve the collection target in the next Oiscal year," Rehmatullah Khan Wazir, chief commissioner of the Large Taxpayers Unit (LTU) Karachi said. The revenue for the outgoing Oiscal year will be near to revised collection target of Rs2,275 billion, he said. Several measures have been taken in the budget for broadening the tax base. "The concept of Oiler and non-Oiler has been introduced to broaden the tax base and given
KtBA President Syed Wasimuddin Hashmi
incentives to the compliant taxpay- open market rate," he said, and sugers,” he said. Wazir said that in the gested the provinces to revisit the past several attempts were made existing rates. Commenting on the to broaden the tax base, including single-digit sales tax, he said, a comconducting surveys, exemption mission has been constituted, from audit and amnesty which will give recommendations schemes. "But all such exin the next three to four months. ercises could not yield He; however, suggested desired results," he that the provinces said. should bring down The applicatheir sales tax on bility of active services to a sinthe concept of filer taxpayers-regle-digit belated provicause in a sceand non-filer has sions will be nario when difOicult. the federal been introduced to H o w e v e r, government broaden the tax base the same brings down should be the sales tax and given incentives adopted on to a singleto the compliant the Oilers of digit, there last tax year, he would be no intaxpayers said. The LTU put adjustment Karachi chief comand refund. "This missioner said that may create problems changes regarding retailfor the taxpayers," he said. ers will force them for mandatory Abdul Qadir Memon, former registration. president of the Pakistan Tax Bar Talking about the withholding Association, highlighted the changes tax on immovable property, Wazir brought in the direct taxes through said, the federal government has no the Finance Bill, 2014. He said that power over amending the collector the budget is aimed at creating clear rate. "At present, the collector rates difference between taxpayer and of provinces are not at par with the non-taxpayer. The budget also fo-
cused on broadening the tax base through introduction of new withholding tax regime. Memon said that through these changes the share of direct taxes would increase from 36.5 percent to 37.5 percent. Besides, Rs100 billion exemptions have been withdrawn and the budget incentivised export and textile sectors, he added. Adnan Mufti, FCA at Shekha and Mufti Chartered Accountants, explained the changes in indirect taxes. He questioned the claim of the business-friendly budget. "Reality will unfold slowly and gradually," he said, adding that there is an unclear tax policy of the government. Except for half-backed measures in case of retailers, no tangible efforts have been made to enforce tax laws to non-complaint sectors, he said. "The government, instead of improving its expenditure, is placing strong emphasis on tax burdening measures," he added. Syed Wasimuddin Hashmi, president of KTBA, welcomed the speakers for deliberating on the key issues pertaining to the budget. He also appreciated the guests for highlighting anomalies in the Finance Bill 2014.
Customsconfiscates58tonnesofsmuggledblackteaintworaids KARACHI
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akistan Customs has conOiscated 58 tonnes of smuggled black tea worth millions of rupees in two separate raids conducted by the Anti-Smuggling Organization (ASO) of Model Customs Collectorate of Preventive and the Directorate of Customs Intelligence and Investigation, Karachi. A team of ASO headed by Assistant Collector, Headquarters-I, Muhammad Wasif Malik raided Bolton Market and its adjacent streets in wee hours and con-
Oiscated 24 tonnes of smuggled black tea in the downtown (old city) area. Assistant Collector Wasif Malik informed Customs Today that the ASO team conOiscated smuggled black-tea worth over Rs 15 million, which was being smuggled from Afghanistan. He further said that no claimant has yet appeared in the case, while MCC Preventive has completed the seizure report. Furthermore, ofOicials of Directorate of Intelligence and Investigation-Customs, Karachi raided a warehouse in Jodia Bazaar and recovered 600 large bags of high quality smuggled black tea. A team of Directorate of Customs Intelligence received information that high
Customs team raided a warehouse in jodia Bazaar and recovered 600 bags of black tea
quality expensive black tea of Kenyan origin was stored in a warehouse of Jodia Bazaar, which was smuggled through Afghan Transit Trade and illegal routes. On a tip-off, Director Customs Intelligence in consultation with Additional Director Nadeem Ahsan constituted a team comprising Deputy Director Dr. Ahsan, In-charge Anti Smuggling Squad Muhammad Aslam, Akmal Hashmi and Pervez Zardari. According to customs ofOicials, 34 tonnes of smuggled black-tea was stored in the warehouse without any payment in share of customs duty and taxes. The tea was taken into custody after fulOilling legal formalities.
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NATIONAL 05
JUNE 17 - JUNE 23, 2014
Zero rating on potatoes, tomatoes & pulses proposed to be continued: FBR
ISLAMABAD: FBR has clarified that no new taxes have been proposed to be levied on potatoes, tomatoes and pulses. The existing zero rating on these items has been proposed to be continued in the Finance Bill. The government has proposed reduction of duty rate from 30% to 25% on items like food preparations, fruits, kitchen wares, electronic appliances. However, regulatory duty is proposed to be levied on high end consumer goods. Similarly, existing concessions on all pharmaceutical raw materials, products/drugs have been proposed to be maintained.
Recovery of taxes: 164‘big fishes’ served final notices SIALKOT
ZAFAR MALIK
FBR tightening noose around tax evaders, Bajwa tells Senate body
www.customstoday.com ISLAMABAD BR has issued final notices to as many as 164 big exporters-turned- chronic defaulters, warning to clear their outstanding dues within 10 days otherwise their bank accounts will be frozen. It has been learnt that the FBR has decided to freeze the bank accounts of the defaulters if they fail to clear their dues in the stipulated time. According to the senior FBR officials, seeking anonymity, the FBR Gujranwala Region has scrutinized as many as 1,000 cases of the defaulters of SalesTax and WithholdingTax.The board has issued final notices and warning for early payment of the prolonged outstanding dues (to the tune of millions of rupees) within a stipulate period of the next ten days.The FBR officials revealed that the FBR had decided to freeze bank accounts of the above-mentioned 164 big fish exporters-turned-chronic defaulters if the fail to pay their dues. They claimed that the FBR Inland Revenue Department had issued notices to these defaulters a year ago for clearing their dues till July 2013 but they paid little heed.They revealed that owners of several textile mills and exporters related with the cutlery industry were involved in the tax evasion.The FBR officials advised the defaulters to get benefit of the additional ten days to pay the taxes. Meanwhile, the exporters and industrialists have expressed grave concern over the situation, alleging that the FBR officials were harassing and pressurizing them.
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BR Chairman Tariq Bajwa has said that FBR is tightening the noose around tax evaders including people who pay lesser amount of tax despite owing more to national exchequer. He said this while attending a meeting of Senate’s Standing Committee on Finance. Bajwa informed the committee that taxes will be levied on stock markets as well as a hundred thousand new taxpayers will be brought into the tax net each year. He told the committee that 810,000 people Oiled tax returns this year as compared to previous year’s 711,000 Oilers. He regretted the fact that owners of plazas worth millions of rupees and millers who are establishing more and more factories are paying only few thousands in share of income tax. To a query by newsmen, he pointed out that budget proposals and SROs are two separate issues. While further elaborating his point of view to media about authority to levy new taxes, he said that it rests with the government. However, Finance Ministry can increase or decrease taxes by issuing Statutory Regulatory Orders (SROs) as it has been empowered by Parliament through promulgation of relevant laws, he added. He said that levy of agricultural tax lies within the ambit of provincial jurisdiction. Senate’s standing committee has recommended elimination or otherwise reduction of PDL on petroleum products. However, PML-N’s Members of National Assembly RaOique Rijwana and Nuzhat Sadiq showed opposition to the recommendations. FBR
— Exclusive Customs Today photo
Chairman suggested in favour of targeted subsidy on petrol. The suggestion had been forwarded by Barristor Usman Saif. Finance Secretary Dr Waqar Masood was also present during the meeting. He said that currently, petroleum development levy of Rs 8 per litre on diesel and Rs 10 per litre on petrol is being received. During the present month, instead of increasing petroleum prices, the government has taken the burden onto itself. This has resulted in loss of 1.8 billion rupees to national exchequer. Finance Secretary further said that world’s least amount of taxes are levied in Pakistan to which committee members replied that world’s least incomes are also reserved for Pakistan. The committee rejected the presentation from Pakistan ex-Servicemen Society. Meanwhile, Tariq Bajwa has directed all the regional ofOices to forward data of all kinds
FBR Chairman seeks data of all cases, appeals from regional offices
of ongoing cases and appeals under consideration along with the details of funds involved. In a letter written from FBR headquarters, Islamabad to regional ofOices of Customs, Excise and Inland Revenue, all the ofOices have been directed to send a list of ongoing cases and appeals under consideration of collectors, courts, tribunals and Federal Tax Ombudsman’s ofOice within a week. Sources said that the purpose of the letter is to sort out legal anomalies due to which billions of rupees owed to FBR are stuck with various institutions and individuals. After investigating into the anomalies FBR will forward its analysis to the Finance Ministry. Sources added that it is expected that taking the Oindings into consideration, amendments can be proposed for the Finance Bill of Fiscal Year 2014-15 before it is rectiOied by the Parliament on June 30.
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— Exclusive Customs Today photos
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SPECIALREPORT
www.customstoday.com JUNE 17 - JUNE 23, 2014
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SPECIALREPORT 07
JUNE 17 - JUNE 23, 2014
KARACHI
SOHAIL RAB KHAN www.customstoday.com
ecrease in customs duty by 5 per cent in the recent federal budget for the Fiscal Year 201415 will certainly put a positive impact on imports and play an imperative role in curbing smuggling, mis-declaration and tax evasion. This was stated by Mian Zahid Hussain, President of Pakistan Businessmen and Intellectuals Forum (PBIF) while talking to Customs Today during an exclusive interview. Commenting on the discretionary powers conferred to Federal Board of Revenue, Mian Zahid said that it was unjustified, as the FBR officers were misusing those powers by harassing the importers, traders and businessmen. He emphasised on proper check by FBR high-ups on their subordinates regarding use of discretionary powers. Replying to a query, Mian Zahid said that the automation in Pakistan Customs was imperative to facilitate the trade, adding that it will enhance the business activities in the country. He further said that Customs should evolve a comprehensive strategy to halt the smuggling of items, adding that 40 to 50 items including tyres, tubes, alloy steel, black tea and others are being smuggled from Afghanistan and Bandar Abbas
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in Iran. Shedding light on the working of Directorate General of Intelligence and InvestigationCustoms, Mian Zahid said that the role of Customs Intelligence remained very crucial in recent days to curb smuggling activities. However, they should not create hindrance for the genuine importers in clearance of their consignments. To a query, President PBIF said that the Directorate of Customs Intelligence should verify the documents of the importers through automated system, so that the speedy disposal of the consignments could be made possible and the genuine importers could save their money, which they had to pay in share of detention and demurrage charges in case of delayed clearance of the consignments. Answering another question, Mian Zahid said that the government should be facilitating local businessmen and traders first before attracting foreign investors. If the local investors are facilitated through healthy business environment, the foreign investment would ultimately be multiplied. “The most important thing is to ensure a conducive business environment that can be generated by offering lower tax-
ation and a friendly business system along with elimination of corruption and bureaucratic obstacles,” he maintained. Hussain further said that Pakistan has great potential for progress and the business community was working in complete harmony with the government. However, the government should play its due role in restoration of law and order in the country, particularly in Karachi for boosting trade and economic activities. “I believe if business community is provided with support from the government, we will be able to attain our objectives soon and contribute towards generating more revenue for the exchequer,” he added. To another query, Mian Zahid said that the enhancement of Information Technology was vital for development and progress of the country, as the country could not be strengthened without growth in this field.
40 to 50 items including tyres, tubes, alloy steel, black tea and others are being smuggled from Afghanistan and Iran
PROFILE Mian Muhammad Zahid belongs to a Shaikh family from Chiniot. He was born in Punjab in 1955. He is the owner of two factories located in Korangi Industrial area Karachi and Faisalabad respectively. He is Chief Executive Officer (CEO) of Kenlubes. He was honoured with Sitara-e-Imtiaz by the federal government for his tireless efforts for business community. Mian Zahid Hussain served as the Chairman of Korangi Association of trade and Industry (KAtI) in 2003. He also acted as the Chairman of All Pakistan Lubricant Manufacturers Association (APLMA), Chairman of Sindh Chapter of Workers Employers Bilateral Counsel of Pakistan, Chairman of Alternate Disputes Resolution Committee of Customs and Chairman of Internal trade Committee of FPCCI.
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08 EDITORIAL
JUNE 17 - JUNE 23, 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
FBR taxation measures
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ederal Board of Revenue is making efforts to broaden its tax base and in the outgoing financial year ending on June 30, the Board has sent notices to 100,000 non filers. Under the IMF program of $6.67 billion, the government has made commitments to send tax notices to 300,000 non filers over three year period in order to expand its narrow tax base. With challenging tax collection target of Rs2,810 billion for the fiscal year 2014-15, the broadening of tax base can provide the long term solutions to the woes of tax managers who are making all out efforts to achieve the fix target at all costs. The job of tax machinery will not be easy until and unless the tax net is broadened in Pakistan. Out of 180 million populations, less than 0.8 million file their tax returns. The FBR’s reliance is heavily dependent upon indirect taxes. In the context of non-documentation of economy, FBR again preferred to rely upon withholding taxes in order to further burden those who still consider that remaining out of tax net will incentivize them rather than coming into tax net. Now the FBR has taken conscious steps to increase tax burden on those who are non filers and buying cars and property plots in different parts of the country. The limit of plot has been envisaged at 3 million, although, the FBR has proposed this exempted limit at 2 million but the federal cabinet increased this limit up to Rs3 million for imposing advance tax on purchase of plots. The rampant tax evasion is another area which needs to be focused more for increasing revenues. Without effective enforcement the achievement of highly ambitious tax collection target seems unfeasible. The concept of right man for the right job needs to be implemented in tax collection machinery. If the government desires to make high-level changes in top management of the FBR it should be made at the start of the coming financial year because after passing few months it will be hard for new comers to grasp the tax issues in half way. This advice will be applicable only if the government continues to bring DMG officers into the FBR at the slot of Chairman FBR. The effective enforcement for retailers, hotels and other withholding agents can prove wonders for the tax machinery so the FBR should focus on these issues at the start of the fiscal year. In order to overcome under invoicing, the government has brought down the maximum slab of Customs Duty but also increased duty on certain items by excluding them from zero rated regimes. There is need to use technology by ensuring hassle free mechanism to achieve the desired results.
Privatization and transparency ISLAMABAD
SM HAIDER
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fter pause of seven years, Pakistan has entered into domestic as well as international capital market to ofOload its remaining shares in United Bank Limited (UBL) that fetched $387 million for the national kitty. The PPP led regime had made efforts in its Oive year rule to launch Global Depository Receipts as well as move ahead with other privatization proceeds but they had failed to accomplish single transaction. After assuming reins of power, PML-N led regime has struck a deal with IMF by making a commitment to pursue a vigorous privatization plan over the next three years under $6.67 billion Extended Fund Facility. The Council of Common Interest had already approved 68 public sector enterprises where different modes of privatization would be applied in accordance with the guidelines Oinalized by Oinancial advisors. By accomplishing the Oirst transaction on privatization front,
the present government has set the stage to privatize more state owned institution by off loading their shares in months ahead. First in this regard, the government will offer shares of PPL within this ongoing month. The Cabinet Committee on Privatization under Chairmanship of Finance Minister Ishaq Dar had approved the strike price of Rs158 per share to off-load the government’s remaining 19.8 per cent or 241million shares in UBL. The UBL was proOit making bank which was providing dividend of Rs28 million yearly to its shareholders. The government had set Oloor price at Rs155 and gave 9% discount over the previous day trading as India provides discount of 10.5 per cent on its transaction so 9 per cent discount was reasonable level in accordance with the assessment of Chairman Privatization Commission Muhammad Zubair, who is basically responsible to market privatization of different entities in transparent manner. Out of $387 million, the foreign equity funds bought 81 per cent
shares for $311 million. It was the biggest capital market transaction after 2003 HBL capital market deal when the government raised Rs12.4 billion. The foreign buyers including Morgan Stanley, Wellington, Templeton and others bought the shares. The government will be privatizing more public sector entities in order to fetch over $2 billion in the upcoming Oiscal year, starting from July 1, 2014. The government will privatize shares of Oil and Gas Development Company Limited (OGDCL), Habib Bank Limited (HBL), Allied Bank Limited and Pakistan Petroleum Limited (PPL). Under the privatization law, 90 per cent of the privatization proceeds have to be utilized for retiring public debt while the remaining amount should be used for poverty alleviation. According to government’s plan, it will launch Global Depository Receipt of HBL’s transaction by December and was expected to yield $1.2 billion. The OGDCL transaction is expected to be completed in September that will fetch about $850 million.
But in case of loss-making public sector enterprises like Pakistan Steel Mills and Pakistan International Airlines there were serious political, labour, employees’ rights and post-privatization challenges. The government would have to ensure transparency in the privatization proceeds and in this regard all regulators need to be strengthened. There is dire need to strengthen Competition Commission of Pakistan by Oilling its all the vacant posts as well as in Security and Exchange Commission of Pakistan and other regulators of energy sector. There is need to grant complete autonomy to regulatory institutions in order to give conOidence of accomplishing this process in open and transparent manner and dealt with iron hand in case of any Oishy deal found in this process. In the case of UBL shares off loading, the CCP had granted more than 30 exemptions. Now there is need to inform the public that what kinds of exemptions CCP had provided in this deal. If this practice is adopted by the government then it will ensure transparency in this process.
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NATIONAL
JUNE 17 - JUNE 23, 2014
09
Zambian woman held with 990g heroin
SIALKOT: Airport Security Force (ASF) arrested a Zambian national woman identified as Muhamba Chikonga with heroin-laden capsules weighing 990 gram at Sialkot International Airport. She was trying to board Muscatbound flight. The woman, having Zambian nationality, was arrested after ASF personnel recovered heroin-laden capsules from her undergarments during routine search. The contraband is said to be 990 grams and worth hundreds of thousands of rupees in the international market.
tDAP endeavouring to enhance exports: S M Muneer
PRV section recovers Rs15m in 52 cases ost ReleaseVerification (PRV) Section of Model Customs Collectorate of Appraisement-West has recovered and collected an amount of Rs 15,274,629 while detecting 52 cases of tax-evasion, mis-declaration and under-invoicing in the month of May, 2014. The PRV Section has recovered an amount of Rs 305,274 from Goods Declaration (GD) no.89562; Rs 305,274 from GD no.90338, Rs 197,450 from GD no.91570; Rs 54,302 from GD no.127941; Rs 306,207 from GD no.141834.The PRV Section has also recovered an amount of Rs 703,655 from GD no.128163; Rs 56,117 from GD no.142973; Rs 23,710 from GD no.141181; Rs 186,608 from GD no.140094; Rs 81,372 from GD no.132,423; Rs 163,659 from GD no.137501. It has also recovered an amount of Rs 28,230 from GD no.135500; Rs 1,526,721 from GD no.146546; Rs 21,845 from GD no.137500; Rs 374,488 from GD No.78335; Rs 383,484 from GD no.69364; Rs 378,663 from GD no.74471; Rs 94,934 from GD no.141778; Rs 46,039 from GD no.141775; Rs 687,275 from GD no.140489; Rs 656,289 from GD No.140487; Rs 87,205 from GD No.140123.The PRV Section has also recovered huge amount of Rs 1,627,627 from GD no.138061; Rs 41,056 from GD no.132479; Rs 92,288 from GD no.132489; Rs 92,288 from GD no.132487; Rs 93,437 from GD no.140463; Rs 93,437 from GD no.140460; Rs 94,437 from GD no.140457; Rs 93,737 from GD no.140468; Rs 93,437 from GD No.140466. It has also recovered an amount of Rs 28,224 from GD no.140924; Rs 197,307 from GD no.99437; Rs 305,016 from GD No.99437; Rs 289,122 from GD no.116158; Rs 284,921 from a GD no.119911; Rs 284,001 from GD no.121969; Rs 305,071 from GD no.103595; Rs 131,964 from GD no.18540; Rs 250,904 from GD no.62953; collected Rs 108,897 from GD no.125605; Rs 107,943 from GD no.125204.The Section has also collected an amount of Rs 253,181 from GD no.151620; Rs 122,160 from GD no.107440; Rs 7,349 from GD no.154956; Rs 183,183 from GD no.77421; Rs 523,010 from GD no.100087; Rs 1,793,884 from a GD no.146389; Rs 508,413 from GD no.141526; Rs 175,047 from GD no.132407; Rs 185,761 from GD no.116862; and recovered an amount of Rs 240,296 from GD no.134905. —CTReport
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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 tODAy REPORt www.customstoday.com
— Exclusive Customs Today photo
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he destiny of the country can be changed if good, honest and reputable names are inducted for the top slots in key national organizations. This was stated by S M Muneer, Chief Executive OfOicer of Trade Development Authority of Pakistan during his visit to Karachi Chamber of Commerce and Industry. KCCI President Aamir Abdullah Zaki, Chairman Businessmen Group (BMG) Siraj Kassim Teli, Vice President KCCI Muhammad Idrees, prominent businessmen including Zubair Motiwala, Mian Zahid Hussain, Khalid Tawwab and others were also present on the occasion. Speaking to the business community, TDAP Chief S M Muneer said that the government should consult the business community for the redressal of their grievances and elimination of anomalies. He further said that the working conditions need to be improved for the development and progress of the country, adding that the TDAP was endeavouring hard to expand the export of the country. “I can double the export of the country after getting sustainable working environment for trade,”
he assured. CEO TDAP terms the recent budget a ‘budget for business community’, adding that the Prime Minister and his team was determined to pull out the country from hot waters with the support of the business community. S M Muneer urged the government to explore mineral ores from the land of Balochistan in order to enhance exports. He announced that TDAP is going to hold Expo Pakistan in October, 2014.
Chairman BMG Siraj Kassim Teli said that the progress of country was linked to the development of Karachi. Teli asked the CEO TDAP to take action for eliminating corruption and hindrances faced by the exporters in sending their consignments. Chairman BMG was of the view that all political parties and their leaders are working for their vested interests and not working for the public interest. "We need to break the silence and ask for the
supremacy of law and order in the country, particularly in the city," he added. On the occasion, Teli requested the federal minister to abolish GIDC, discretionary powers given to FBR ofOicers and take notice of the corruption in FBR. On the occasion, Chairman KCCI Abdullah Zaki thanked the TDAP Chief S M Muneer for his visit to KCCI and hoped that he will raise the grievances of exporters before the high-ups of government authorities.
Seeking decrease in duty on import of plain paper To,
definitely be affected by the increase in WHT and this will also affect the import of papers. Through this letter, I envisaged that the federal government should consider the implementation of ‘adjustable tax’ instead of ‘Oixed tax’ on the import of paper. I further reckon that the federal government should lift anti-dumping and R&D duty on the import of papers for increasing its import and decreasing cost of doing business for the facilitation of the traders belonging to paper industry. I hope that you will take the said matter into consideration and do accordingly to facilitate the trade of paper.
Federal Finance Minister, Govt of Pakistan, Islamabad Respected Sir, I would like to draw your attention towards a significant issue related to the increase in duties/taxes on the import of plain paper in the recent budget for the fiscal year 2014-15. Sir, as you know that the federal government has increased the Withholding Tax on the papers’ distributors by 4 per cent to 4.5 per cent, the increase in WHT by 0.5 per cent on the distribution on papers will certainly increase the cost of doing business and also raising issues of under-invoicing. The local industry of paper will
— Exclusive Customs Today photo
Thanking in anticipation, Yours sincerely, A Q Khalil, Former President KCCI
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10 PICTORIAL
JUNE 17 - JUNE 23, 2014
Power generators, bags worth Rs16m impounded
LAHORE: Customs Anti-Smuggling Wing has impounded power generators and ladies bags worth Rs 16 million in two separate raids. The anti-smuggling wing on a tip-off seized 17 power generators ranging from 50kv to 230kv at a warehouse at Harbanspura. The owners of the power generators failed to produce documents of the generators to the antismuggling scout. Meanwhile, in another raid the anti-smuggling scout confiscated ladies bags of foreign origin worth Rs 6 million at the Sagian Interchange.
ISLAMABAD: Federal Minister for Commerce, Engr. Khurram Dastgir Khan chairing a meeting with textile importers.
ISLAMABAD: Federal Minister for Finance, Senator Muhammad Ishaq Dar in a meeting with Ambassador of Denmark Jesper Møller Sørensen.
ISLAMABAD: Senator Mrs. Nasreen Jalil, Chairperson Senate Standing Committee on Finance, Revenue, Economic Affairs, Statistics and Privatization presiding over a meeting of the committee at Parliament House.
KARACHI: Ports and Shipping Minister Kamran Michael calls on Governor Sindh Ishratul Ebad.
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NATIONAL 11
JUNE 17 - JUNE 23, 2014
Dar sees forex reserves at $14b by end june
ISLAMABAD: Finance Minister Ishaq Dar has expressed his hope that Pakistan’s foreign exchange reserves will reach $14 billion by June 30, 2014. In a policy statement, Ishaq Dar informed the National Assembly that the country would receive $310 million of 19.8 per cent shares of United Bank Limited next week that would take country’s foreign exchange reserves to $14 billion. The Finance Minister elaborated that currently the foreign exchange reserves stand at $13.52 billion.
KPtemployeesstageprotestforrestorationofsonquota KARACHI
CuStOMS tODAy REPORt www.customstoday.com
he employees of Karachi Port Trust (KPT) have staged a protest demonstration in front of main KPT Building for the restoration of son quota in the offices of the Trust. During the protest, the participants demanded of the federal government and authorities concerned to restore the son quota in KPT, which was not implemented since 1996. The protestors raised placards and banners inscribed with demands to restore son-quota for KPT employees. They also kept chanting slogans in favour of restoration of son quota in KPT. The leader of KPT son quota restoration movement, Lala Nazeer alleged that the KPT administration was not taking interest in
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— Exclusive Customs Today photo
restoration of son quota in the department since long. “Despite issuance of a notification during the tenure of former Prime Minister Yusuf Raza Gilani regarding the restoration of son quota, it was not implemented yet,” said Lala Nazeer. On the occasion, he demanded transparent inquiry of 1000 recruitment made on political basis in KPT in the year 2011 despite the non-implementation of son quota. Lala Nazeer appealed the Prime Minister and Federal Minister for Ports and Shipping to take notice of the situation. “The KPT Board Resolution no.362 dated November 26, 1988 stated in Para 6(E) that the son/daughter of the deceased/retired employees to be appointed within 7 days after the retirement. However, it has not been implemented since 1996,” he maintained.
‘Ah Haaa! — caught you working for cash!’
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12
JUNE 17 - JUNE 23, 2014
LCCI president meets Customs chief to enhance cooperation
LAHORE: LCCI President Sohail Lashari met Chief Collector Rozi Khan Burki in order to enhance mutual liaison between business community and Pakistan Customs. He asked for genuine importers to be given time in case anyone fails to produce documents at the spot. He pledged cooperation on part of business community to overcome the evil of smuggling. Burki assured full cooperation of customs with the business community of the city. Assuring his support for genuine importers, he said that liaison between the stakeholders has immense importance.
COLLECTOR SEEKS SECURITY FOR CUSTOMS OFFICIALS LAHORE
M HAyAt
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C
ollector of Model Customs Collectorate of Appraisement Muhammad Zahid Khokhar has urged FBR to provide security to the Customs ofOicials working to collect vital revenue for the national exchequer as some importers and clearing agents have resorted to threaten the ofOicers in order to inOluence Customs’ working in their favour. The collector made this request to FBR in a letter. The collector quoted the example of Azizur-Rehman Malik, Principal Appraiser of AIB and Investigation and Prosecution Branch of the Collectorate who was recently held by policemen in Lahore and was taken to Kot Ladha police station in Gujranwala. On reaching the police station, he was informed that he had been taken into custody in connection with an old murder case of 2005, registered against unidentiOied persons and now his name has been included as an accused by the complainant of the FIR. He urged the Board to take immediate measures in order to avoid such incidents which. Meanwhile, Inspector General Punjab Police while taking action against the police ofOicial of Kot Ladha Police Station has suspended the responsible who implicated Principal Appraiser Azizur Rehman Malik of Lahore Dry Port in a fake murder case. The Appraiser had unearthed Rs 1 billion mis-declartion of silicon-electrical steel sheets of clearing agent M/s Ikram Inter-
national Services. This was stated by Collector of Customs Zahid Khokhar while talking to Customs Today. “Although our Principal Appraiser has been released, it has become tough in such circumstances to work and come over corruption on account of mis-declaration of imported goods when the port ofOicials are deliberately implicated in false cases on the directions of the tax evaders to settle their grudges,” the collector regretted. Khokhar added that Model Customs Collectorate of Appraisement Lahore has detected gross mis-declaration of silicon-electrical steel sheets committed by unscrupulous importers and clearing agent M/s Ikram International agent Services at Mughalpura Dry Clearing tional Port through fraudulent terna means causing huge loss Ikram In eclared d to the national exchequer Services name amounting to over Rs 1 bilr, lion. Khokhar said that absconde CL Principal Appraiser Azizur put on E Rehman Malik of AIB, the Investigation and Prosecution Branch of the Collectorate, played a pivotal role in Controller Customs to detection of the case on June 4, different laboratories to 2014. The Principal Appraiser had get favourable test reports. also made six contravention cases involvThe Collector added that some poing Rs 18.5 million in three weeks, and got reg- licemen nabbed Azizur Rehman near M.A.O. istered three criminal cases against the im- College and took him to Kot Ladha Police Staporters concerned as well as the above tion, 30 km from Gujranwala, on account of an mentioned customs clearing agent. old murder case lodged in 2005 against unHe informed that the importers in con- known persons. nivance with the said clearing agent forwarded Khokhar said the Collectorate informed fake samples along with fake letters of Assistant Member Customs, the whole situation accord-
— Exclusive Customs Today photo
Police official suspended for implicating principal appraiser in fake murder case; FBR union condemns hooliganism of police
ingly. The Collectorate brought into the Member's notice that the owner/proprietor of the clearing agency, Ikramul Haq Bhatti, who reportedly belonged to the same area, had been declared absconder and he along with his accomplice, the importer concerned was recommended to be placed on the Exit Control List. Meanwhile his license had already been suspended on May 27, 2014.
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
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