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ATTRACTINg FDI

Consistencyintheeconomicpolicies willbeensuredforprotectionof investorsasthecountryneedsFDI insteadofaid,saysDar. | See pAge 02 |

Filing tax returns is an obligation and all and sundry should follow it FAIZA ISRAR

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DeveLOpINg gwADAR

Director General Withholding Tax Seema Majid has said that it is very heartening to see the public, in general, is getting aware and being sensitized to the signiSicance of paying taxes. It is still not enough to manage issues as only one third of the total potential taxpayers are paying taxes, which is far below the minimum level required for balancing the Siscal order. There exists a huge potential for generating more and more revenue prerequisite for the prosperity of the country.

FBR Director General Withholding Tax Seema Majid expressed the views during an exclusive interview with Customs Today.

Seema Majid pointed out that there was 35 percent growth overall in the revenue collection of which withholding tax contributed 95 percent. “Filing tax returns is an obligation and all and sundry should follow it,” she stressed.

The DG Withholding Tax declared that imposition of taxes on parliamentarians had conveyed a clear message that nobody was above and over the law and everyone should pay tax.

She said that when one talks about withholding tax there were more than 50 provisions pertaining to this single department but lack of knowledge about it often result in mishandling and leakage in rates.

“There are cases in which deduction has been made by withholding agents but did not deposit the money in the government treasury which often leads to imposition of Sine on the taxpayer who, otherwise, has paid the money he owed,” she explained.

“In the current Sinancial year up to January, there are 29,498 cases wherein withholding audit - both in Sield and at desk, has been conducted,” the withholding tax DG informed, adding that of these total cases, orders under

F Governmentisgoingtoinvest1.2 billiondollarsatGwadarPortfor variousprojectsinthenexttwoto threeyears,saysPortsandShipping MinisterKamranMichael. | See pAge 03 | CALCuLATINg ReveNue

Customs duty collected till date was the same amount recovered during last fiscal year due to reduced imports, says FBR Spokesman Shahid Asad. | See pAge 09 | CARTOONS SpeCIAL

| See pAge 11 |

section 161/205/182 in 4,702 cases had been taken out of which Rs31,358 million demands were created.

“Rs3,804 million have been collected till January and the remaining collectable balance is Rs27,553 million,” Seema Majid revealed. She said that for this purpose, the department had to conduct analysis from time to time which was indeed a difSicult process.

Seema Majid shared that monitoring, innovation and education were the most important tools that enabled one to rise to the day-to-day challenges in this Sield. She asserted that it was an appreciable effort that at every RTO, there was an exclusive withholding tax zone which had been facilitating revenue collection in a beSitting manner. “Look, these exclusive withholding tax zones can produce even better results if the shortage of manpower is overcome as owing to the large number of provisions, these sections are almost shorthanded,” the DG WHT emphasised.

There is

35%

growth overall in the revenue collection of which withholding tax contributed

95% — Exclusive Customs Today photo

ISLAMABAD

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NATIONAL

MARCH 25 - MARCH 31, 2014

Chinese investment to improve freight trains performance: Saad

LAHORE: Federal Minister for Pakistan Railways Khawaja Saad Rafique has said that Chinese investment and supply of coal will enable freight trains to play role in boosting the performance of the railways department. He said China would make an investment of 32 billion dollars, out of which 4 billion dollars would be invested in the Pakistan Railways. The minister rejected the possibility of privatization of the Pakistan Railways. He said private investment would be welcomed but through transparent mechanism.

Tyre importers, dealers propose reduction in duty akistan tyres importers and dealers association (PTIDA), in its proposals for the upcoming budget presented to Federal Finance Minister Ishaq Dar, has suggested the reduction of customs duty on import of tyres.

In its suggestions PTIDA has asked for bringing down the existing duty rates of passenger car tyres from 25 per cent to 5 per cent; from 20 per cent to 5 per cent on import of light truck tyres; from 5 per cent to zero rated on import of truck and bus tyres.The proposals read that tyres are prone to smuggling due to high rate of import duties and sales tax. Furthermore, there exists a substantial gap between local production and national demand.

That is why they are preferable items for smugglers, which is hurting the legal importers and local industry.

The proposals read that there are 250 different sizes and patterns of consumable tyres. 80 per cent of these are radial.The local production lingers around 50 different sizes, half of which are nonradial.The indiginous yearly production is 1.21 million tyres out of an annual demand of 9.75 million tyres.While legal imports are 2.7 million tyres.

Import of raw materials for tyres is duty free as well as exempted of withholding tax. PTIDA proposals read that reduction in duty structure will not affect the sales and profitability of the local manufacturers because of their captive customer base. Moreover it would add to the documentaion of parallel economy and the government shall be able to earn Rs 2.5 billion in addition to its current collection from the import of tyres under the head of customs duty. —CT Report

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FBR collects over Rs 1,440b tax so far ederal Board of Revenue has collected over Rs 1,440 billion tax during the current fiscal year up to middle of the current month, which is 17 percent higher than Rs 1,239 billion collected in the corresponding period of the previous fiscal year.

FBR Spokesperson Shahid Hussain Assad, while giving breakup of tax collected up to March 15 under various heads, said that Rs 527 billion was collected as Income Tax against Rs 481 billion collected last fiscal year. Similarly, Rs 700 billion was collected as Sales Tax against Rs 588 billion collected last fiscal year.

Shahid Hussain Assad, who is also Member Inland Revenue-Policy, said that under the head of Federal Excise Duty Rs 104 billion was collected against Rs 79 billion last fiscal year. He said the Custom Duty collected till date was Rs 157 billion and the same amount was recovered last fiscal year.

He attributed less recovery under this head to less imports. The spokesperson said some 900,000 tax returns had been filed this year so far. —CT Report

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Dar vows to build forex reserves up to Rs16b by end 2014 KARACHI

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laborating the government’s steps taken over the last eight months, the Federal Finance Minister said that the government has chalked out a comprehensive plan for building forex reserves to reach $ 16.021 billion by Dec 31, 2014.

He was speaking at the exports trophy awards ceremony of Karachi Chamber of Commerce and Industry (KCCI), which was graced by Prime Minister Muhammad Nawaz Sharif as the chief guest. Federal Finance Minister Ishaq Dar has said that for over 8 months the economy has registered an all-round performance indicating that there is a solid turn-around in the country. Government is now in a position to pass on beneSits.

He said that almost every single economic indicator including Gross Domestic Product (GDP), inSlation, agriculture, industry, imports, exports, remittances, foreign inSlows, exchange rate stability, interest rate, Siscal deSicit, revenues, reserves and public debt show a positive beginning for the country’s economy.

“Allah has rewarded our pure and good intentions, the hard work that our government has rendered under the exemplary leadership of Prime Minister Muhammad Nawaz Sharif,” he remarked. He said that the conSidence of the people of Pakistan has been revived and it is bringing about a remarkable turn-around to the economy. “There are numerous challenges and milestones that we have to achieve and hence we are not complacent by this initial success, rather our resolve to work harder has been strengthened and we will work with more vigour and energy to achieve our objectives,” he said.

The Prime Minister has announced far-reaching tax incentives as well as a comprehensive youth programme, he added. Under the tax in-

PakistanneedsFDIfromJapaninsteadofaid:Dar akistan would welcome foreign direct investment from friendly countries including Japan and others instead of aid or loan.

Finance Minister Senator Ishaq Dar said this while talking to Hiroshi Inomata Ambassador of Japan to Pakistan who called on him at Ministry of Finance. Senator Ishaq Dar said that Pakistan economy has started to show positive results due to structural reforms and measures introduced by the present government, as tax collection, GDP growth rate and foreign exchange reserves are moving up and the rate of inflation is going down. He mentioned that due to confidence in Pakistan’s economic policies Japan ExternalTrade Organisation (JETRO) has ranked Pakistan second in the world in terms of business growth. He said that if the survey is any guide then the Japanese companies should expand their business in the country.

He added that, instead of aid or loan, the Government would welcome foreign direct investment from friendly countries including Japan. He assured the Ambassador that Japanese investors will be facilitated to invest in Pakistan where huge investment opportunities are available.The Japanese Ambassador said

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centives, non-Silers of tax returns as well as dormant NTN holders can avail concessions by April 30, 2014.

While for investment scheme, commercial operation date has been Sixed on or before June 2016 to avail incentives under the PM’s package for industrial growth.

The government has also published, in terms of the provisions of Section 216(6) of the Income Tax Ordinance, 2001, a tax directory containing names, NTNs and tax paid by all the parliamentarians. In the second phase, a tax directory of all taxpayers in the country will be published, he said. The Sinance minister said that efforts were underway to disinvest, in a transparent manner,

that Japan fully supports the reforms programme and economic policies undertaken by the present government and looks forward to renew its economic relations with Pakistan.The Japanese Ambassador said that a delegation of Japanese businesspersons would visit Islamabad, Lahore and Karachi next month to explore avenues of co-operation. He hoped that the visit will help improve trade relations between the two countries.

Later, a delegation of US-Pakistan Business Council, US Chamber of Commerce called on Finance Minister Senator Mohammad Ishaq Dar at the Finance Ministry.

The Finance Minister briefed the delegation on economic situation in the Country. He said that when the PML-N Government took over, eight months ago, the economy was in tatters.

The Government had to undertake serious painful measures to bring things back on the track. He said that due to prudent measures, today, the situation is much better. Budget deficit is going down and tax revenues have witnessed 17.7pc growth, in the last eight months. Inflation is under control and we are on course to achieve the targets set for the fiscal year. He said that consistency in the economic shares of certain banks and PSEs in the stock market. The government’s preferred option is strategic partner with 26 per cent shares and handing over of management.

As post-budget relief, the government has announced 26 measures to boost the business sector. It has also announced withdrawal of two per cent extra tax for further processing of parts and in use of manufacturing vehicles. “We have announced that all sales tax refund cases up to one million rupees would be processed and sanctioned as per law by April 15, 2014. There will be 26,000 beneSiciaries of this measure out of a total of 36,000 cases,” he said.

The minister said that incorpora-

policies will be ensured for protection of investors. He added that there is a huge potential in the renewable energy and hydro carbon sectors.

MilesYoung, Chairman of US-Pakistan Business Council congratulated the Finance Minister on the economic turn-around. He said that the situation in Pakistan is much better than eight months ago, when he last visited Pakistan during the general elections. He said that the international projection of Pakistan is also positive and it should stimulate American interest to the available investment opportunities. He informed that the Council is poised to make additional investments in Pakistan in the renewable energy and IT sectors. He also informed that the delegation will meet public and private entities in Lahore and Karachi to explore areas where the US investors may like to invest. Ms Caroly Brehm, Member, Board of Directors, US-Pakistan Council said that Pakistan has made remarkable progress in short time and her company Proctor and Gamble is expanding its business by making additional investment in Pakistan. She said that her company sees a great potential in the huge Pakistani market. —CT Report tion of new companies has increased by 14.95 per cent in the Sirst eight months of FY 2013-14 as compared to same period last year. KSE index has risen showing an increase of 37.1 per cent.

Federal Board of Revenue’s revenue collection has risen to Rs 1,348 billion during July to February 201314 as compared to Rs 1,145 billion; an increase of 17.7 per cent.

In the Sirst eight months of 201314, budget deSicit has decreased from 1,053 billion to Rs 1,015 billion, he said. Remittances during the same period have increased to $ 10.24 billion as compared to $ 9.23 last Siscal year; showing an increase of 11.2 per cent.

Appraisement (west) clears 701 imported vehicles KARACHI

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he Model Customs Collectorate (MCC) of Appraisement-West has cleared 701 imported vehicles out of total 761 and collected a revenue/surcharge of Rs449.294 million by March 17.

According to the FBR sources, 60 more imported vehicles are still stuck at ports and the Pakistan Customs will get the revenue of Rs38.455 million after the clearance of these 60 vehicles.

It is pertinent to mention here that the MCC-Appraisement (West) had

also issued demand notices of Rs320 million to the importers and Customs agents during the last two months against the shortfall of surcharge levied by the Ministry of Commerce on the clearance of imported vehicles, which were released by the ports earlier.

It may be mentioned here that the Ministry of Commerce in the Economic Council Committee (ECC) meeting had approved the clearance of imported vehicles with the surcharge of 64 per cent on those vehicles older than 3 years and 8 months and also imposed an addendum of 20 per cent as “Slat rate” on imported vehicles which passed the time period of 3 years and 8 months.

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NATIONAL 03

MARCH 25 - MARCH 31, 2014

Indian customs confiscates over 38 kg gold

NEW DELHI: Indian Customs officials have confiscated 38.430 kilograms of gold at the Indira Gandhi International Airport. While keeping surveillance on passengers coming in from Herat, Afghanistan, customs officials stopped some female passengers while they were passing through the Green Channel at the airport after landing in New Delhi via flight. On searching their baggage, 38.430 kilograms of gold in the form of ornaments (necklace, bracelet and chains) valued at Rs 106 million were recovered from them.

he Federal Board of Revenue (FBR) is set to withdraw special pay package/allowance of the officials who will fail to utilise the Computerised Risk-Based Evaluation of Sales Tax (Crest) for detecting discrepancies in the sales tax returns/statements and refund claims.

As per details, the issue of Crest was discussed during the Chief Commissioner conference held at the FBR House. It was pointed out that the FBR has tasked certain Grade 17 to 20 officials with monitoring sales tax data through the Crest. It is their bounden duty to monitor and utilise data of the Crest for detecting discrepancies in the sales tax returns. If the officials fail to perform their duties, the FBR will withdraw their special allowance or double pay package.

As far as training of Crest is concerned, it has been decided by the Chief Commissioner conference that nine months training is enough for the tax officials concerned. Now, the Crest will be fully utilised by the tax officials assigned for this duty without any further delay.

It is to be noted that the Board is also utilising Crest system to ensure filing of withholding statements by sales tax registered persons and enforce return filing by non-filers of income tax and sales tax returns.

The system is cross-matching the sales tax purchases with the income tax statements filed by sales tax registered persons. Due to amendment in Finance Act, 2013 in Section 153, every sales tax registered person has been declared withholding agent.

It has been found in the Crest that certain sales tax registered persons, showing purchases in their sales tax returns are not filing withholding statements. —CT Report

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primeministerapproved nineprojectsofgwadarport:michael ISLAMABAD

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ederal Minister for Ports and shipping Senator Kamran Michael has said that government is going to invest 1.20 billion dollars at Gwadar Port for next two to three years’ projects.

Prime Minister of Pakistan has approved nine projects for Gwadar port, that include Airport, Schools, Hospital, Vocational Training Institutes, projects for uplifting Sisher men and Sish industry, and up gradation of infrastructure, Federal Minister has stated.

Senator Kamran Michael has said that talks with C.E.O of a Chinese company remain very positive and optimistic and Chinese delegation after completing his three days visit at Gwadar Port, has departed to China. Kamran Michael said that Ambassadors of European countries had also paid their visits to Karachi and Gwadar and Ambassadors of Netherlands and Belgium had invited him in their countries respectively. Ministry will sign Memorandum of Understandings with these countries by the end of this month and he is likely to visit Rotterdam port and Zeebrugge in Netherlands and Belgium respectively and will explore new avenues of trades.

Federal Minister will meet business community of both countries who are interested to extend their trade with Pakistan. Federal Minister has stated that not only he has maneuvered to lift ban on Pakistan’s Sish in European markets but Pakistan is earning millions of dollars in this context each month.

— Exclusive Customs Today photo

FBR links special allowance with Crest utilization

Railways to link Karachi with Gwadar ISLAMABAD

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akistan Railways is planning to lay track to link Karachi with Gwadar seaport to facilitate traders and generate revenue.

According to ofSicial sources‚ the new track will fulSil the needs

of transportation of goods to Gwadar. The government is in contact with China for preparing studies for the construction of Khuzdar‚ Jacobabad and Dera Ghazi Khan main line.

Pakistan Railways is also working on restoration of ECO train for Turkey via Taftan and Zahedan. The train will help traders to transport their goods to Iran and Turkey. The train will

help traders to transport their goods through train to Turkey, Iran, India and Pakistan.

The department is also planning to construct a dry port for container-holding at Havelian near Abbotabad for facilitating trade with China. After construction of the port, about two million tons of goods could be transported between Khunjrab and Havelian.

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04 LAHORE

MARCH 25 - MARCH 31, 2014

hmC protector: Customs patrol boat launched

LONDON: A new customs patrol vessel has been launched by the Border Force to help in the fight against the trafficking of drugs along with other restricted or prohibited goods. At almost 50m long and weighing 400 tonnes, it replaces HMC Sentinel, following decommissioning in 2013. It will be located in Portsmouth and will operate around the UK coastline.

Restoration of zero-rated tax regime demanded akistan Textile Exporters Association (PTEA) has demanded from the government to restore zero-rated tax regime for export-oriented textile industry.

PTEA Chairman Sheikh Ilyas Mahmood and Vice Chairman Adil Tahir, in a statement, have said the government should bring in necessary reforms and give special status to export-oriented textile industry allowing zero-rating facility to achieve desired goal from European Union markets through Generalised Scheme of Preferences Plus status.

Being mainstay of the economy and major stakeholder in forex earnings, exportoriented textile sector should be given more special status than other industries, they demanded. If the government wants to fully utilise the GSP Plus scheme, it should immediately enforce the previous system of zero rating for export-oriented textile industry which would mean no deduction and no payment of sales tax refund and this would help ensure cash flow for industry to meet export contracts, they said and added that there was no deduction of sales tax to be refunded by the Federal Board of Revenue at later stage up to February 2013. After its withdrawal, huge amounts of textile exporters have stuck in sales tax refund regime creating severe financial crunch.

PTEA Chairman elaborated that payment of sales tax for textile exporters was made zero rated in 2005 on the pattern of "no demand-no refund" in order to get rid of numerous complaints and irregularities and also to avoid fake refund claims. The move brought fruitful results and textile exports gradually increased every year. It jumped from $ 8.9 billion in 2004-05 to $ 13.78 billion in 2010-11. —CT Report

MCC Lahore collects 27pc additional customs duty in 8 months

he Customs values of computer leads and networking cables have been determined by the Directorate General of CustomsValuation Department through Valuation Ruling No 643/2014 under Section 25-A of the Customs Act, 1969.

According to details, the customs value of computer leads from China having Pakistan CustomsTariff (PCT) code 8544.4210 and proposed PCT code forWeBOC 8544.4210.1000 has been fixed at $ 2.00 per kg.While, the customs value of networking cables having PCT code 8544.1900 and 8544.4990 whose proposed PCT code for WeBOC are 8544.1900.1000 and 8544.4990.1000 respectively have been fixed at $ 2.00 per kg. It is also mentioned that the Collectors of Customs may kindly ensure that the values given in theVR for the given description of goods are applied by the concerned staff without failure. According to the Director of CustomsValuation Department, any anomaly observed with respect to PCT may kindly be brought to the notice of the Directorate General of Customs Valuation immediately. —CT Report

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Collector preventive Fazal Yazdani

Collector Appraisement Zahid khokhar

LAHORE

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odel Customs Collectorate collected customs duty of Rs 141,488 million in eight months of Sinancial year 2013-14, 26 percent higher compared to the corresponding period of Sinancial year 2012-13.

According to ofSicial data, Lahore Appraisement wing collected Rs 10603.8 million, 27 percent extra as compared with Rs 8344.19 in the same period of the last Sinancial year whereas Preventive wing collected customs duty of Rs 3584 million, up 26 percent in eight

Appraisement collected Rs 10603.8m, 27 pc extra as compared with Rs 8344.19 in the same period of last financial year

months as compared to Rs 2834.9 percent during the corresponding period of last year.

The data revealed that Collectorate of Appraisement collected Rs 16,540 million which is 14 percent more than Rs 14,560 million collected during the same period of last Sinancial year while Collectorate of Preventive collected Rs 6216.2 million, 61 percent extra against Rs 3,849 million of the same period of last year.

The data further said that under the head of withholding tax, both the collectorates collected Rs 8,224 million against Rs 5,891 million, which is 39 percent higher.

The collectorate of appraisement collected Rs 3073 million during Sinancial year 2013-14 against Rs 2,697 million of last year while collectorate of preventive collected Rs 5,151 million against Rs 3,194 million (up 61 percent) during 2013-14.

nti Narcotics Force (ANF) has recovered 1 kg opium, 2.14 kg heroin and 25 kg Charas in five operations conducted in Rawalpindi, Lahore, Mianwali and Peshawar. Most of the drugs were meant for overseas destinations.

ANF Rawalpindi Spot Check Team acting upon information intercepted a vehicle with registration no LEB-3413 near Burhan Motorway Interchange and recovered 1 kg opium and 25 kg of Charas tactfully concealed in secret cavities of the vehicle. Driver of the vehicle Muhammad Sikandar, a resident of Faisalabad, was arrested at the spot.

Similarly, ANF arrested Fayyaz Ali, a resident of Nowshera, at Islamabad Airport who confessed to having 40 heroin filled capsules in his stomach. He was supposed to be travelling by air from Islamabad to Dubai. The heroin in the capsules weighed 240 grams.

ANF team at Peshawar Airport arrested Hasnian Zaman, a resident of Sargodha, and recovered 1 kg and 200 grams of heroin tactfully concealed in his hand baggage. He was travelling from Peshawar to Riyadh via Sharjah by air. The accused was arrested at the spot. ANF arrested Muhammad Sadiq and Syed Muntazir, both residents of Layyah and recovered 0.5 kg of heroin from their personal possession. The accused were arrested near Hamza Cotton Mill, Multan Road, Mianwali.

ANF Lahore intercepted a parcel dispatched through World Logistics office from Gulberg-III Lahore destined for UK. Detailed search of parcel resulted in recovery of 200 grams of heroin. Cases have been registered in ANF police stations. —CT Report

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CustomsfoilsbidtosmuggleheroinworthRs20mtoIndia LAHORE

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ustoms officials foiled a bid to smuggle 2kg heroin worth Rs 20 million in international market and one million in local market to India skillfully packed in break slander of goods train of Railway at Wagha border.

The Customs Investigation and Prosecution cell registered an FIR against unidentified persons on the complaint of Inspector Customs Railway Station, Wagha.

According to details, Customs officials found 2 kg heroin in break slander in a railways wagon upon thoroughly examining the wagon No. 74,970 carrying cement to India through Wagha.

The customs officials found

— Exclusive Customs Today photo

Customsvaluesof computerleads, networkingcablesissued

— Exclusive Customs Today photos

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ANFrecoversdrugs incountrywide operations

that the break slander of the wagon was fixed with new net bolt which attracted their attention.

They said that when the break slander was opened they found two packs of 2 kg heroin worth Rs 20 million in international and rupees one million in Pakistan.

According to customs officials, laboratory tests of the substance in the break slander have confirmed it as heroin.

The customs officials said that they have preserved the finger prints at the packets and the break slander and also impounded the wagon.

The Customs I&I department have started investigation into the matter which will enable them to determine the ‘involvement’ of the railways officials in the smuggling of the heroin to India.

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ISLAMABAD 05

MARCH 25 - MARCH 31, 2014

georgia, Azerbaijan sign customs agreement

TBILISI: Georgia and Azerbaijan have signed an agreement on cooperation in the customs sphere. The document was signed by head of the Revenue Service of Georgia's Finance Ministry, Irakli Gvaramadze and Chairman of the Azerbaijani State Customs Committee, Aydin Aliyev. The signing ceremony took place in Tbilisi. There are six customs posts operating subordinate to the Balkan and Tovuz customs offices between Azerbaijan and Georgia, namely Sadikhli, Sinig Korpu, Jandargol, Mazimchay, Muganli automobile posts and the Boyuk Kasik railway.

pRv Section recovers Rs5.3m he Post Release Verification (PRV) Section of the Model Customs Collectorate of Appraisement-West under the vibrant and dynamic leadership of MCC Appraisement-West Collector Muhammad Saleem has recovered Rs 5,323,942 from 11 cases in the month of February, 2014.

According to details, the PRV Section of MCC Appraisement-West has recovered an amount of Rs 551,140 from the Goods Declaration (GD) No.38089 and recovered an amount of Rs 467,905 from the GD No.41189. The PRV Section has also recovered a sum of Rs 564,450 from the GD No.47457 and it has recovered an amount of Rs 375,831 by the GD No.47498.

The Section has recovered an amount of Rs 565,948 from the GD No.67331 and it has also recovered an amount of Rs 558,820 by the GD No.62926. The PRV Section of MCC Appraisement-West has recovered an amount of Rs 484,919 from the GD No.58229 and recovered a sum of Rs 204,426 from the GD No.97534. It has recovered an amount of Rs 300,707 from a GD No.41227 and recovered an amount of Rs 729,848 by GD No.101950. —CT Report

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Adjudication Collectorate-I issues 12 ONOs in March he Adjudication Collectorate-I has issued 12 Orders in Original (ONOs) against different parties in the first 18 days of the month of March 2014, it is learnt here. According to sources, three ONOs were issued by Collector Adjudication-I; two ONOs have been issued

by Additional Collector, Adjudication-I; and three ONOs issued by Deputy Collector, Adjudication-I out of total 12 ONOs. Adjudication Collectorate-I has received six contraventions from Directorate General of Intelligence and Investigation of Customs, FBR; two contraventions from Model Customs Collectorate-Preventive and four contraventions from MCCAppraisement (West). —CT Report

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Body set up for Auto Industry policy

MPsdissatisfiedwithratesofassembledcars ISLAMABAD

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ational Assembly Standing Committee on Industries and Production grilled local car assemblers for allegedly charging exorbitant prices through dealers' network and a lack of quality and safety regulations. The committee Sirst presided over by PML-N lawmaker Mian Abdul Manan and then by PTI MNA Asad Umar constituted a sub-committee under the chairmanship of Alhaj Shah Jee Gul Afridi to tailor recommendations for consideration of the committee responsible to prepare an Auto Industry Policy (ADP).

The committee is headed by Minister for Water and Power Khawja Muhammad Asif. Abdul Waheed Khan, Director General, Pakistan Automotive Manufacturers Association (PAMA), gave a detailed presentation to the committee and maintained that the prices of cars were lower in Pakistan as compared to India and Thailand. On the occasion, Minister for Industries and Production Ghulam Murtaza Jatoi acknowledged that prices of cars were high in Pakistan though probably not as high as in India and Thailand except small cars like Suzuki.

According to Director General, production of cars in Pakistan was 120,000 last year which was far less than in India and Thailand.

The committee members raised questions over exorbitant prices, quality and safety instruments.

Chief Executive OfSicer (CEO) Pervez Ghias maintained that the turnover of M/s Indus Motors was Rs77 billion last year but the proSit was only Rs4 billion. "In terms of proSit, we suffer from very poor perception," he added. Mian Abdul Manan stated that M/s FAW is also assembling cars like Toyota and

Mehran with 25 per cent lower prices being charged by M/s Indus Motors and M/s Suzuki Motors.

Alhaj Shah Jee Gul Afridi, who is also a member of auto sector, proposed that there should be a committee to formulate module replacement policy in Pakistan as in the entire world cars manufacturers change their models after few years, but in Pakistan, cars like Mehran are being sold for a long time. The representative of M/s Suzuki Motors stated that the company intended to replace Mehran but is facing problems. He also proposed that the import of used trucks under the head of scrap should be banned immediately and an age for import of used trucks should be Sixed by the government. To which the FBR Member Customs agreed and informed the committee that

Revenue from beverages industry declined due to capacity tax imposition, says FBR Spokesperson Shahid hussain Asad

the FBR had already requested to the Commerce Ministry to amend used vehicles import policy to curb import of used vehicles under the garb of scrap. A representative of EDB informed the meeting that FBR had not approved a single tariff proposal in the budget for the last three years. At which the FBR Member Customs question that when proposal would come a night ahead of the budget how could it be accommodated? Ijaz Ahmad, Deputy General Manager (tariff) Engineering Development Board (EDB) jolted the committee when he maintained that there was no system in Pakistan to check the quality of newly assembled cars or to recall defective cars. He said these issues were being addressed in the ADP 201419 which was in the Sinal stage. He added that it should be made compulsory for the OEMs to test cars from Pakistan.

The Standing Committee on Industries and Production had called the FBR ofSicials to review the impact of imposition of capacity tax on beverages industry, the rationale behind it and the revenue losses due to change in the regime. After witnessing a shortfall in collection, the FBR increased capacity tax rates in the range of 60% to 70% last month.

Shahid Asad testiSied that during last budget-making exercise, the beverages industry had approached FBR with a complaint that some of the players were evading taxes; therefore the FBR should introduce the capacity tax regime. They had pledged that with introduction of capacity tax, the FBR would receive a 25% additional tax in the current Siscal year over and above the collection made in the previous Siscal year, he added. But the actual results showed that collection even fell below last year's level, said Asad.

"After the results of Sirst eight months of the Siscal year, we cannot say it was an excellent experience to introduce capacity tax," said Mo-

hammad Nisar, Member Customs of the FBR. The standing committee did not take any position and recommended the government to involve other players of beverages industry in the consultation process. "At the time of changing tax regime the FBR had met with representatives of only two MNCs and ignored the rest of the players," said member standing committee, Isphanyar Bhandara, who is PML-N's member National Assembly on a reserved seat. From new Sinancial year, the federal government is considering introducing electronic monitoring of manufacture of sugar, beverages, cigarettes and cement, said Nisar Mohammad.

He said a team of the FBR was currently visiting Germany and Turkey to review functioning of the electronic systems.

After the results of first 8 months, we cannot say it was an excellent experience to introduce capacity tax, says Nisar muhammad, member Customs

Importersconveydeepconcernsoverdiscriminatoryclearance ISLAMABAD

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he importers of Karachi have expressed their deep concerns over the implementation of assessable values on the clearance of different items, which they called an ‘unjustified and discriminatory act’ by the Pakistan Customs in order to damage the imports of the country, particularly of the city.

Talking to Customs Today, the importers of the city were of the view that a major difference of the assessable values (valuation guidelines) on different items in-

cluding nails, steel scourers, stainless steel kitchen sink (unbranded), articles of iron key chains, hand tools including hand saw/hack saw, band saw circular saw; hand tools (power operated) including drill machines and other inter-changeable tools; cutting machine parts, kitchen knives, in cutter; nail clipper, cutter; aluminium kitchen wear i.e. fry pans, cook wear sets, nonstick utensils, trace for oven, nuts bold and screw, aluminium ladders, swing needles, scissors, disposable razors, spoons, file ring, binders, paper clips, thumb tacks, iron and steel chair/chain link and aluminium profiles was witnessed in the clearance of

FBR Chairman Tariq Bajwa and member Customs Nisar muhammad urged to take appropriate action in this regard

items from dry ports and Karachi port.

“The customs duty is almost double on the clearance of said items on the Karachi Port as compared to other dry ports of the country, which is badly affecting the imports and the revenue of the country,” they added.

They termed the prevailing action of the officers of Pakistan Customs, regarding the high assessable values implementing only in the clearance of said items at Karachi Port, a passive move and harmful for the imports in the city.

“The smuggling of those items from Afghanistan and Bandar Abbas in Iran was also witnessed

due to the said action of the Federal Board of Revenue and Pakistan Customs officers, adding that it was also affecting the imports and importers of the city directly,” they added.

They further appealed the FBR Chairman Tariq Bajwa and Member Customs Nisar Muhammad to take appropriate action in this regard and save the imports of the economical hub of the country.

When contacted, one of the senior FBR officers confirmed Customs Today that the imports at Karachi Port were at decline by a great extent, which ultimately affects the revenue collection target set by FBR during the Fiscal Year 2013-14.

— Exclusive Customs Today photos

06

SPECIALREPORT

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SPECIALREPORT 07

MARCH 25 - MARCH 31, 2014

ISLAMABAD

FAIZA ISRAR

www.customstoday.com ember Senate Standing Committee on Ports and Shipping Sardar Yaqoob Nasir has said the government was actively pursuing a comprehensive strategy for the development of ports and coasts of the country but unfortunately lack of Sinancial resources was hurdling progress in this regard.

Member Senate Standing Committee on Ports and Shipping Sardar Yaqoob Nasir made the observations during an exclusive interview with Customs Today.

The PML-N lawmaker from Balochistan revealed that recent visit of the Senate Committee members aimed at observing the development work going on at the Gwadar port Sirst-hand and weighing up the severe Sinancial issues to work out their solution.

“China is working on the project with Pakistani government and has constantly been demanding for a tangible development process but our government has been grappling with multifarious problems,” Sardar Yaqoob pointed out.

Lack of Sinancial resources and widespread corruption were the two main issues that had been hampering the development process, he said and added, the government was working hard to eliminate corruption and would emerge victorious very soon.

The Senate standing committee member emphasized that the prevailing challenges and future demands warranted hard work to develop not only Gwader but also other ports. “This project could not be carried out due to the stubbornness of the provincial government which has been trying hard to get administrative control of the port at all costs,” Sardar Yaqoob claimed.

He asserted that the Sindh government was responsible for security of the port but it had failed to discharge its responsibility. “The provincial government of Sindh, through delaying tactics, has been trying to portray that the federal government is not taking interest and has failed to perform its duty to pave the way for taking over the control,” he claimed.

Born in Quetta on January 10, 1947, Sardar Muhammad Yaqoob Khan Nasar graduated from the University of Punjab in 1969 and obtained a Master’s degree in Political Science from the University of Balochistan in 1983. The PML-N Senator envisaged that if Gwader Port was fully made

m

THE BENEFITS OF GWADAR PORT ARE ENORMOUS NOT ONLY FOR PAKISTAN BUT FOR THE ENTIRE REGION AND THE GOVERNMENT HAS BEEN STRIVING HARD TO COMPLETE THIS PROJECT OF GREAT NATIONAL IMPORTANCE. GWADAR WOULD GO A LONG WAY IN ERADICATION OF SENSE OF DEPRIVATION FROM BALOCHISTAN.

functional, it would not only beneSit overall exports enormously but would also revolutionize local areas.

“Exports from Khunjerab to Gwadar will get Slourished and people living all along the way will get more and more opportunities, ushering in new era of development and industrial boom,” he elaborated.

The Senate committee member argued that another issue which had been impeding the development of Gwadar Port was Pakistan Navy’s land measuring more than 500 kanals.

“The committee, in principle, has decided to take this land back from Pakistan Navy and allocate land of equal value and measure to PN elsewhere,” he revealed, adding that the committee made the decision in its last meeting and a summary had been sent to the prime minister in this regard.

“No doubt it is a major issue and a big decision for the Senate Standing Committee on Ports and Shipping but we took it,” Sardar Yaqoob informed, adding that now the summary was lying with the Prime Minister and he would have to decide “what is better for the country and nation.”

The PML-N Senator from Balochistan opined that a long term approach must be adopted for the development of Gwader Port as it would bring about a revolution in Balochistan besides linking Central Asian countries with the entire world, turning Pakistan into a regional hub of trade and commerce.

“The beneSits of Gwadar Port are enormous not only for Pakistan but for the entire region and the government has been striving hard to complete this project of great national importance,” the Pakhtun leader from Balochistan described. Sardar Yaqoob hoped that Gwadar would go a long way in eradication of sense of deprivation from Balochistan.

Replying to a question, he declared that it was a good step on the part of the Federal Board of Revenue to issue national tax numbers (NTN) to non-registered parliamentarians and bring them into tax net.

He said that everybody should pay tax and the parliamentarians should set an example in this regard. “Honestly speaking we are glad that FBR has set up a helping desk at the Parliament House to facilitate the lawmakers and if the Board keeps continuous working on these lines it will turn out to be a great success in the future,” he concluded.

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08 EDITORIAL

MARCH 25 - MARCH 31, 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

granting NDmA status to India

I

slamabad is seriously considering granting Non Discriminatory Market Access (NDMA) status to New Delhi in the aftermath of a lucrative offer made by India by offering to remove 514 items from sensitive list in next six months out of total 614 items.

The abolishing of sensitive list of 614 items comprises all such products such as textile, leather, surgical products which possess the potential to boost exports of Pakistan made-ups over the medium term.

“The offer made by outgoing Indian government seems lucrative and Pakistan might accept it by providing MFN or NDMA status to New Delhi after getting approval of the federal cabinet,” said the top functionaries of the government.

It is not yet known whether the political leadership has taken the military establishment into confidence or not but the new security paradigm endorsed by GHQ focuses on allowing trade and normalizing relation with neighboring India.

But there are some relevant questions that need to be answered before moving ahead.There are general elections around the corner in India and at this juncture how it could be guaranteed that incoming government in New Delhi would honor the commitment of its outgoing government especially in case of Pakistan.

If any unwarranted incident happened on any side some kind of mechanism should be in place that ensures continuation of trade relations between the two countries. If trade becomes hostage of other issues then it cannot become long lasting in case of Pakistan and India.

Another important thing is that how much the government has placed the required infrastructure for boosting bilateral trade such as customs clearance mechanism at Wagha border is not sufficient to handle bulk of import and export products in one go. So the construction of infrastructure at road, rail and ship links is prerequisite for boosting trade with India.

The trade managers of the country claims that by restoring normal trade relations with India, the country’s exports could go up from $300 million to $2.5 billion over the medium term.The major boost in increasing exports could provide the textile sector a 60 percent share and the agri sector a 25 percent share.

According to estimates made by Ministry of Commerce, Pakistan could save $1 billion in its import bill in the wake of proximity.The country’s GDP can go up by 2 percent over the next three years.

Pakistani common consumers could save Rs 70 billion in view of decreased freight in case of allowing imports from India. In the initial stage, in case of opening up of trade between Pakistan and India, the chemicals and raw materials would be the major items on both sides.There are concerns expressed by agriculture, pharmaceutical and auto industry over possibility of normalizing trade with India.The government has responded that there will be safety valves going to be in place to protect their genuine interests.

As opening up of trade with India is largely beneficial for both countries, but the people of Pakistan should be taken into confidence that initially it will be in the favor of India but then Pakistani entrepreneurs will have to respond after getting market access of over one billion population living across the border.

Auctioning next generation technologies ISLAMABAD

Sm hAIDeR

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T

he government is all set to fetch at least $1.6 billion into national kitty by auctioning next generation technologies (3G and 4G) by next month.

The government has set the stage for this important transaction by releasing Information Memorandum (IM) with consent of Prime Minister Nawaz Sharif which illustrates exact mode of selling scarce and important asset of the country in the shape of available spectrum with an aim to maximize revenues as well as increasing penetration of information technology into lives of common people of Pakistan at affordable rates.

According to IM, the government has decided the base price as $ 295 million for 10MHz paired spectrum in 2100 GHz band, US $ 210 million for 10MHz paired spectrum in 1800 MHz frequency band and US $ 291 million for 7.38Mhz paired spectrum in 850MHz frequency band. The last one is only reserved for the new entrant.

The IM has placed certain con-

ditions for successful completion of this transaction as a new license will be issued to the Auction Winner for Next Generation Mobile Services, with similar terms and conditions as of previous license and additional terms and conditions/amendments will be spelled out as an addendum by PTA. The financial transactions will be US Dollar denominated and the amount can either be paid in US Dollar or equivalent Pak Rupee.

If the Auction Winner intends to pay the remaining balance amount before the end of 05 years, it would be acceptable without any pre-payment penalty.

A late payment additional fee at a rate of 2% per month on the instalment due or part thereof from the due date till paid shall be levied on the licensee.

The License shall be suspended/terminated in case Licensee fails to make a payment.

In order to give certainty to the bidders, it was recommended that no related auction will be carried out for 18 months from the date of auction. However, for any spectrum which remains unsold from this auction, PTA retains the right to

The government will have to demonstrate transparency at all remaining stages which can go a long way in executing ambitious privatization plan

hold or dispose of the same as deemed appropriate.

The government claimed that as result of this transaction, additional GDP valued (in net present value terms) at between Pak Rupees 380 billion and Rs 1180 billion in the period up to 2020, yield additional tax revenue between Rs 23 Billion to Rs 70 billion and generate jobs up to around 900,000 in next five years.

So far the process is on track and transparency has been ensured. The Government of Pakistan, PTA and Consultants are very confident that the auction will receive strong support and participation from both the existing and prospective telecom operators.

The government will have to demonstrate transparency at all remaining stages which can go a long way in executing ambitious privatization plan in other sectors of the economy and will increase confidence of masses that such transactions can be accomplished without entering into any controversy. But a lot in this regard depends upon will of the government in order to steer the country out from the crisis mode.

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NATIONAL

MARCH 25 - MARCH 31, 2014

09

Australian Customs seizes 4,000 steroid tablets

SYDNEY: The Australian Customs and Border Protection Service (ACBPS) seized 4,000 steroid tablets in a package that arrived in Sydney mail centre a week ago from Thailand. ACBPS officers at the New South Wales International Mail Centre intercepted a suspicious looking package and found 4,000 blue heart-shaped tablets concealed in mislabelled supplement bottles. Initial testing of the tablets returned a positive result for steroids.

Shortcomings of ATT rules under weBOC To, The Honourable Chairman, Federal Board of Revenue, (FBR), Islamabad Respected Sir,

With reference to the issuance of Customs NotiSication vide SRO 121(1)/2014 dated February 24, 2014 which discusses the rules for transit procedures of AfghanistanPakistan Transit Trade processing and trans-shipment of transit cargoes under WeBOC, to and from Afghanistan, All Pakistan Customs Bonded Carrier Association has observed many shortcomings and inadequacies on the same, wherein few of them are of serious nature which needs your attention on urgent basis to avoid any un-necessary discontinuation of Afghan Transit Trade.

It is pertinent to mention here that we have been coordinating in different capacities with FBR/Customs and their subordinating ofSices on various issues requesting corrigendum and amendments of those rules along with our reservations/grievances, which instead of being resolved and taking undue mischief out of it, have been brought forward in SRO with some even more strict statements

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

that need your attention and rectiSication. Your immediate attention for the route speciSied in the said SRO is required, wherein that actual route that is used for the southern side in not at all mentioned under the prescribed routes mentioned under the SRO; whereas previously there were two routes mentioned in SRO 601, but the prescribed route in SRO 121 was not being used for ATT due to law and order situation on the route for over a year now; none of the vehicles carrying ATT cargo use this route. We are unable to understand that knowing full situation of this route, why the bonded carriers are pushed to use the route which is completely un-operational and blocked for ATT cargo movement. Need not to mention here that the actual routes advised, were verbally agreed by the competent authorities as well; please note if this is not rectiSied immediately, how would the trade sustain?

The bonded carriers are in very awkward position as the rules are pushing them to use a dangerous route that is prescribed in AppendixIII of SRO 121. The actual route that is being used for south side is as follows: Karachi-Hyderabad-SukkurShikarpur-Jacobabad-Sibbi-BolanQuetta-Chaman.

The Northern side route also needs your attention and proposed rectiSication since the route for Torkham that is actually used by the drivers of the vehicles has some minor modiSications as per the prescribed route. These modiSications were also communicated earlier to the Director Projects (WeBOC) vide letter #ATC/DPW-0103/2013 dated 3 Oct, 2013. It is worth mentioning that the same needs to be addressed on urgent basis, because sub-clause (3) of Clause 480 explicitly states that any deviation from the route may invoke penalty provisions that will only increase issues for the trade.

Further Clause 484-H is illegal and harsh, wherein WeBOC would automatically block the carriers in case of delay in delivering the cargo within the prescribed limit, but no time limit is deSined in the SRO 121(1)/2014.

We would like to put this on record that this automated block is directly in conSlict with the Section # 180 of Customs Act, 1965, which states that no order shall be passed for the imposition of penalty/punishment on any person/company unless the concerned person is informed in writing, given an opportunity of making a representation in writing and are given a reasonable opportunity of being heard personally or through a counsel, or duly authorised agent.

It is worth mentioning here that in SRO121, Clause 484-A sub-clause (1) and (2) deals with the Sinancial guarantee on transit goods, which safeguards the customs revenue, reproduced below, (1) The Afghan importer of goods or his authorised customs agents, brokers or transport operators in Pakistan shall furnish Sinancial secu-

rity in the form of Insurance Guarantee, for the goods destined for Afghanistan, from an insurance company, as per criteria prescribed by the Directorate General of Transit Trade, on the prescribed format (AppendixIV) or any other form prescribed by the Board which shall be valid for at least one-year and shall be en-cashable in Pakistan, for ensuring the fulSilment of any obligation arising out of customs transit operation between Pakistan and Afghanistan. Financial security shall be obtained in case of non-commercial consignments accompanied by a valid ‘MaSinama’ also.

(2) The amount of Sinancial security for transit operation shall be determined by system on the basis of the assessment done by Pakistan Customs at the ofSice of departure so that it covers all import levies.

Further sub-clause (4) and (5) of Clause 477 deal with the permanent installation of the tracking device on the vehicle and its monitoring and tracking is separately governed by SRO-413 which is now very much operational in ATT. At the moment no vehicle in allowed to carry ATT cargo without having a permanently installed tracker on the vehicle from TPL, the company approved by the FBR. Apart from this each ATT container which is loaded on the vehicle is also separately mounted with a tracking device; and the movement of the vehicle along with the container is constantly monitored from the Control Room developed at each customs station jointly by the Customs and TPL authorised personnel 24/7.

We should like to put this on record that Clause 15 under Chapter-III (responsibility of the licensee) of SRO-413 mentions establishment of Mobile Enforcement Units (MEUs), reproduced below:

15. Establishment of Mobile Enforcement Units (MEU): The Collectorates of Customs shall establish MEUs in respective collectorates on shift rotation basis (24 hours and 7 days in a week). The MEUs shall be responsible for reacting in case any alert is communicated to them by CCR or RCR and shall coordinate with Enforcement Units of the licensee.

Having such a foolproof mechanism, wherein all the trafSic in transit is monitored so closely and the Customs revenue on the cargo en-route is also covered with the insurance guarantee from a reputed insurance company, approved by FBR under Clause 484-A of SRO 121.

Under the circumstances when everything is covered, why are such harsh terms put forth in sub-clause (4) of the Clause 29 of SRO 413 on part of the bonded carrier is illogical and totally un-conditional, reproduced below: (4) The carriers and transport operators shall remain liable to punitive and other related actions in cases of violation or contravention of the applicable provisions of the act and rules made there under while complying with the provisions of these rules.

Whereas sub-clause (2) of the Clause 30 of the SRO-413 is very much discriminative wherein, the other licensee (i.e. TPL Tracker Ltd) is made liable only through established proceedings under the act and after providing opportunity of being heard.

This discrimination is visible and against the fundamental principles of natural justice, as explained in the Constitution of Pakistan. We believe that this is a mischief clause and it would only be used as a tool for harassment by Customs against the bonded carriers.

The Sinancial burden for tracker

and per trip charges paid to TPL tracker company that are borne by the transit trade sector for the safeguard of the Customs revenue is only mounting to increase the cost of doing business, when Customs revenue is secured by insurance guarantee, incidents of theft, pilferage and accidents en-route will be urgently reacted by the MEUs on any alert communicated to them by the Control Room on trackers as mentioned in Clause 15 of SRO 413, we are unable to understand as to how is it already assumed and taken for granted by the Customs that bonded carriers will be responsible unconditionally for any theft or pilferage en route, even for the once caused due to weak writ of the government. And if it is already taken for granted by Customs that the bonded carrier is the one to be blamed unconditionally for theft, pilferage or accident en route then why the hassle of all Sinancial burdens in regards to tracking and monitoring and Sinancial guarantee from the insurance companies?

Therefore, a clariSication for the responsibility of bonded carrier as discussed in Clause 480 sub clause (1) & (2) may be elaborated for misdeclaration as well as in cases of genuine theft, pilferage or accident en route which is beyond the human control considering the law and order situation in the country, and may have been caused due to weak writ of the government. The parameters to judge the genuineness of the incident may also be elaborated. Here we would also like to bring this on record that an Article dealing with loss, destruction or shortage of cargo en route which is very much present in the actual agreement (APTTA-2010) signed between both the governments i.e. Afghanistan and Pakistan is totally ignored while drafting all the rules pertaining to ATT, this article is not even acknowledged by Customs in any genuine scenario as well.

Article 28: Loss, destruction, or shortage of the cargo en route: When it is established to the satisfaction of the customs authorities that the goods speciSied in the transit documents/GD have been destroyed or have been irretrievably lost by accident or other unforeseen events en route or that they are short by reason of their nature, payment of duties and taxes normally due, shall be waived.

It is therefore humbly requested that SRO121 may be re-viewed in the presence of all the stakeholders involved therein, and all the short-comings and inadequacies may be mutually resolved and rectiSied, resulting in a smooth workSlow for the trafSic in trade in a paperless environment.

An earliest appointment for discussing all issues above in length will be highly obliging.

Thanking you in anticipation, Yours’ faithfully, Syed Shams Ahmed Burney, Chairman APCBCA, Karachi

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10 PICTORIAL

MARCH 25 - MARCH 31, 2014

hk Customs takes action against illegal export of powdered formula

HONG KONG: Hong Kong Customs carried out a joint operation with Hong Kong Police and Immigration Department against illegal export of powdered formula in San Tin, Lok Ma Chau. In the operation, enforcement officers searched several warehouses storing daily commodities. Nine men and four women, aged between 33 to 70, were arrested. Nearly 30kg of powdered formula, worth about $11,000, were seized therein.

kARAChI: Prime Minister Muhammad Nawaz Sharif is being presented a Memento at the Export Trophy Award Distribution Ceremony of Karachi Chamber of Commerce and Industries.

ISLAmABAD: Federal Minister for Finance Ishaq Dar chairing a meeting of the Advisory Committee on Spectrum Auction.

ISLAmABAD: FBR Chairman Tariq Bajwa signing MoU regarding adjustment of sales tax on services against sales tax on supplied goods with Sindh Revenue Board and Punjab Revenue Authority in the presence of Federal Minister, FBR Member Admin Shahid Hussain Jatoi, FBR Spokesperson Shahid Hussain Asad and FBR Member Inland Revenue Operations Ashraf Khan.

ISLAmABAD: Senator Nasreen Jalil, Chairperson Senate Standing Committee on Finance, Revenue & Economic Aairs presiding over a meeting of at National Bank Head oďŹƒce.

ISLAmABAD: Federal Minister for Commerce, Engr. Khurram Dastgir Khan meeting with High Commissioner of Canada, Greg Giokas.

www.customstoday.com MARCH 25 - MARCH 31, 2014

CARTOONSSPCEIAL 11

egypt accedes to D-8 agreement on customs assistance

CAIRO: President Adli Mansour issued a presidential decree approving Egypt's accession to the Multilateral Agreement among Developing 8 (D-8) Group member states on Administrative Assistance in Customs Matters.

The accession remains subject to parliament's ratification. The agreement aims at facilitating trade movement between the signatory parties and combating customs violations. It will also facilitate customs control on goods transport as well as development of economic and trade relations between the member states.

WeBOC to be implemented at KPT, East, West Wharves BR is going to launchWeb-Based One Customs (WeBOC), computerised system including Electronic Data Integrated (EDI) based on customs clearance at Karachi PortTrust (KPT), EastWharf andWestWharf during the current month, it is learn here. Sources in Pakistan Customs informed CustomsToday that FBR has issued clear directives to the officers concerned of the Directorate of Reforms and Automation to make arrangements for the implementation ofWeBOC at KPT, EastWharf andWest Wharf.They further told this scribe that the Directorate of Reforms and Automation in the light of the directives issued by FBR is going to hold 2-day training session for the stakeholders on March 12 and March 13 at office of the Directorate of Reforms and Automation.“The authorities concerned will impart proper training to importers, exporters, customs agents and other stakeholders regarding the operations ofWeBOC at KPT, EastWharf and WestWharf during 2-day of training session”, they added.

Responding to a query, the customs sources said that WeBOC would be implemented at KPT, EastWharf and WestWharf in next week or so. It is pertinent to mention here that the old One-Custom procedure is in practice at KPT, EastWharf andWestWharf these days. —CT Report

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MARCH 25 - MARCH 31, 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