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PAKISTAn’S FIRST InDEPTH nEwSPAPER on CUSToMS

vol 1 Issue no. 39

Karachi, Tue nov 12 - Mon nov 18, 2013

weekly

Regd. no, MC-1381

Price Rs. 50.00

TRAnSPoRTERS APPEAl

Through CUSToMS ToDAY platform HElP DESK, transporters appeal to the PM to take immediate notice of inadequate security on roads leading to KICT and PICT. | SEE PAgE 10 |

ISLAMABAD

FAIZA ISRAR

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DARREvIEwSPERFoRMAnCE

Finance Minister expresses the confidence that FBR would continue its efforts to collect taxes and facilitate the taxpayers. | SEE PAgE 3 |

AbolISHIng RICE QRC

Dastagir agrees with Rice Exporters Association of Pakistan proposal for abolishing Quality Review Committee (QRC) inspection procedure | SEE PAgE 5 |

CARToonS SPECIAl

— Exclusive Customs Today photo

inister for Ports and Shipping Kamran Michael said that forceful encroachment by different corrupt groups at Port Qasim is a matter of great concern and an Anti-Encroachment Cell has been set up to halt this illegal practice at the earliest.

The cell was not fully functional before but we have now made it a powerful authority to deal with these groups effectively.

In an exclusive interview with Customs Today, Kamran Michael said that the last government had undergone an international treaty with China to develop Gwadar Port and we have to continue with the agreement.

As per the agreement, China has the legal right to work in Gwadar for 40 years. This is actually an operational agreement but the writ and the property rights will remain with Pakistan. Under this agreement, China will need warehouses to develop a textile city, an industrial zone and an oil city in Gwadar. There will be a reTinery as well and more reTineries are needed to See page 07 build throughout the country.

Duty-free access to EU markets

Pakistaniexportslikelytoget$1billionboost Pakistanneedstodiversifyitsexportsintermsofmarketsaswellasproductsastraditionallythecountry’s relianceislargelyonexportsoftextileproducts ISLAMABAD

SM HAIDER

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I | SEE PAgE 11 |

n a bid to jump-start sluggish economic activities, Pakistan is expecting $7 to $10 billion investment over next three to Tive years period by establishing joint ventures with Chinese companies following Islamabad’s ability to obtain duty-free market access from 27-member block

of European Union from January 1, 2014.

Alone Punjab government is considering allocating substantial portion of land for establishing joint ventures industrial park in different parts of the province. Pakistan’s exports are highly concentrated into few products as well as in few markets of the world. The country’s exports are concentrated in few markets including USA, Germany, Japan, UK, Hong Kong, UAE and Saudi Arabia. Pakistan needs to diversify its exports in terms of markets as well as products as tradi-

tionally the country’s reliance is largely on exports of textile products.

Pakistan’s trade managers are thumping over defeat of a resolution at forum of EU Parliamentary Committee on International Trade where efforts were made to block the way for providing duty-free market access to Islamabad with status See page 02

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02 NATIONAL

NOVEMBER 12 - NOVEMBER 18, 2013

TDAP organises Pakistan Pavilion at Heimtextil

Pakistan has become one of the largest participants in the world’s biggest home textiles fair – Heimtextil 2014 with a big contingent of 222 exhibitors, a statement said. Heimtextil, Frankfurt is the biggest international trade fair for home, towel and contract textiles and the global benchmark for quality design textiles of innovative functionality. As the first trade fair of the year, Heimtextil, which is held on four fair days in January, is a platform for manufacturers, retailers and designers, it said.

MCCinitiatestraining programmeforappraisers

he Model Customs Collectorate (MCC) of Appraisement (West) has started a month-long‘Extensive OrientTraining Programme’ for the appraisers in order to enhance their competency in examining and passing the Goods Declarations (GDs) of the importers.

This was stated by Collector MCC of Appraisement (West) Muhammad Saleem while exclusively talking to CustomsToday at his office. He said that the MCC of Appraisement has decided to initiate the training programme after surfacing the revenue loss during Post Release Verification (PRV) made by appraisers by ignoring theValuation Rulings on imported consignments in the first quarter of the fiscal year-2013-14. “The Assistant Collector (AC), Deputy Collector (DC) and Additional Collector (ADC)-level officials of MCC Appraisement (West) will conduct one-hour class from 9am to 10am daily of the appraisers for enhancing their efficiency, Saleem said. Apprising the further details, Collector MCC Appraisement (West) Muhammad Saleem said that the officials of ADC level will conduct the examinations of the appraisers after a month.“Improvement is a basic objective of all the said exercise”, he added. Collector MCC Appraisement (West) informed the scribe that the recovery of the lost revenue would be done soon, as the things have been identified timely. —CT Report

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Pakistani exports likely to get $1billion boost From page 01 of Generalized Scheme of Preference (GSP) plus along with ten other countries which could provide abolishing duty from 9.6 percent to zero percent with effect from Jan 1, 2014. During the period of Musharraf era Pakistan had obtained GSP status but now GSP plus would go a long way for boosting country’s exports over the period of next three years. It could result in boosting investment in Pakistan as textile companies were used to shift their business to Bangladesh in order to avail benefits of Least Developed Countries (LDCs) in the wake of lingering energy shortages within Pakistan. But after obtaining the status of GSP plus, this trend would be reversed as textile manufacturers would be able to ensure increased exports from Pakistan after getting incentive of abolishing of 9.6 percent duty with effect from Jan 1, 2014. When Minister of State for Commerce Khurram Dastgir was asked about benefits of GSP Plus, he told Customs Today that it would promote joint ventures with potential investors especially foreign investors to get mutual benefits in the aftermath of getting GSP plus status from next calendar year.

“Chinese have shown interest for establishing joint ventures with Pakistani companies knowingly Islamabad will get status of GSP plus,”he added. The EU was going to grant this status to Pakistan as country’s share in overall trade of block of 27 countries was less than 2 percent. Currently, Pakistan’s share in terms of overall trade of EU was standing at just 1.3 percent.

“It’s a major achievement and now formality will be done for providing GSP plus for Pakistani products especially to the country’s textile products,”Minister of State for Commerce Khurram Dastgir said. The International Trade Committee (INTA) of European Parliament defeated resolution with 17-12 votes in favor of Pakistan in Brussels that objected to the delegated act establishing the list of beneficiary countries of Generalised Scheme of Preferences Plus (GSP). Khurram Dastgir Khan said that GSP plus is expected to provide a major boost to Pakistan’s exports, particularly textile exports, to the 27-member European Union. The new trade concessions are likely to create 0.1 million new jobs in Pakistan and lead to a $700 million to $1 billion boosts in Pakistan’s exports.

PM gives nod to build power plants at Gaddani, Port Qasim ISlAMAbAD: Prime Minister Nawaz Sharif speaking on the occasion of a meeting with delegations of Qatar and China which called on him at the Prime Minister’s House.

ISLAMABAD

CUSToMS ToDAY REPoRT www.customstoday.com

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atari and Chinese companies will jointly install four coal-based power plants in Pakistan which will generate a total of 2,600 MW of electricity in the energy-starved nation. Prime Minister Nawaz Sharif welcomed the investment in energy sector during a meeting with the Qatari and Chinese delegations who called on him at the Prime Minister House.

The completion of these projects will go a long way in overcoming the energy crisis, says PM nawaz Sharif

The Prime Minister said that two projects, each one of 660 MW, will be set up at Gaddani in restive Balochistan province and two at Port Qasim.

Welcoming the delegations, Sharif expressed his pleasure over foreign investment in power projects in Pakistan, which is facing severe energy crisis.

The completion of these projects will go a long way in overcoming the problem, he said.

He said that for the time being imported coal would be used in the projects till Pakistan's coal is ready for mining.

Sharif assured the delegations that the government would provide full assistance in commissioning of the projects.

Collector Tausif Qureshi assures Karachi Port-like facilities at Multan Dry Port Due to non-availability of Railway locomotives, less cargo bogies and lack of any particular formula for evaluation of goods at City dry port, business community is facing severe problems MULTAN

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ultan Chamber of Commerce and Industry (MCCI) President Khawaja Muhammad Usman said that inefTiciency of Multan Dry Port authorities was forcing local importers and exporters to do business through Karachi.

He said this while addressing a meeting with Collector Customs Tausif Ahmed Qureshi of Model Customs Collectorate.

Multan Dry Port Trust Chairman Khawaja Muhammad Younus and DGCCI President Muhammad Anees Khawaja were also present on the occasion.

Khawaja Usman said the main purpose to establish dry ports was to facilitate local industry so that business community could get their goods without any difTiculty.

He said due to non-availability of Railway locomotives, less cargo bogies and lack of any particular formula for evaluation of goods at City dry port,

business community was facing severe problems. It is observed that NLC was charging high amounts for handling goods. He said Multan dry port had failed to attract importers from Bahawalpur, Dera Ghazi Khan, Muzaffargarh, Khanewal, Vehari, Rajanpur and many other cities due to discriminatory attitude of ofTicials concerned, as they preferred to clear their import consignments in Karachi.

The clearance of goods at the Multan dry port is very expensive because customs ofTicials determine cost of the goods much higher than those in Karachi. While highlighting the concerns, he said Customs Clearance Procedure at Multan is very slow and it takes three to four days

usually and if any kind of dispute arises then there is no time limit.

Collector Customs Tausif Ahmed Qureshi assured that grievances of the traders and business community would be redressed immediately and an Additional Collector Customs Asif Abbas was deputed at Multan Airport and he would be available anytime at site.

He said we would now provide Karachi-like facilities in Multan. He urged upon the importers and exporters to get clear their goods at Multan dry port. He said "to ease the rush at Karachi Sea Ports, the government decided to set up a chain of upcountry dry ports to provide the customs clearance facilities at the door step of exporters and importers."

Collector Tausif assured to raise the issue of dual port wharfage in Multan to attract the importers, and rebate payment procedure would be made easy and simple

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NATIONAL 03

NOVEMBER 12 - NOVEMBER 18, 2013

Hong Kong Customs foils smuggling bid through fishing vessel

HONG KONG: Customs has conducted an operation against sea smuggling and detected a case of smuggling by a fishing vessel in Hong Kong's western waters. During the operation, some 320kg of pangolin scales, 442 handheld game consoles, 2119 mobile phones, a small quantity of methamphetamine, methamphetamine inhalation apparatuses and a fishing vessel with a total value of over $3.6 million were seized. Two men aged 34 and 40 were arrested.

Valuationrulings ofimported almondsissued KARACHI

SoHAIl RAb KHAn www.customstoday.com

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he Directorate General of Customs Valuation has determined the Customs values of the almond in shell and almond shelled imported from Iran, Afghanistan and the United States through a valuation ruling No.604/2013 Under Section 25-A of the Customs Act, 1969. According to the Valuation Ruling (VR) No. 604/2013, almond in shell (imported from Afghanistan and Iran) having the Pakistan Customs Tariff (PCT) Code 0802.1100 and proposed PCT for WeBOC 0802.1100.1100 has Customs Values of US$2.75/Kg, while the Customs Values (C&F) of almond in shell imported from USA having PCT Code 0802.1100 and proposed PCT for WeBOC 0802.1100.1200 would be US$2.50.

Similarly, almond shelled (imported from Afghanistan and Iran) having the PCT Code 0802.1200 and proposed PCT for WeBOC 0802.1200.1100 has Customs Values fixed at US$ 3.25 while the almond shelled imported from the US having PCT Code 0802.1200 and proposed PCT for WeBOC 0802.1200.1200 has been fixed at US$3.00. It is pertinent to mention here that the Valuation Rulings are issued with the consent of Director Customs Valuation.

Ishaq Dar reviews progress

no let-up in FbR efforts for achieving revenue target: Bajwa ISLAMABAD

CUSToMS ToDAY REPoRT www.customstoday.com

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inance Minister Senator Ishaq Dar reviewed progress at the ministry in separate meetings with Chairman Federal Board of Revenue (FBR) Tariq Bajwa, Governor State Bank of Pakistan Yasin Anwar and senior officials.

Chairman FBR Tariq Bajwa informed the Finance Minister that there was no let-up in the efforts of FBR for achieving the revenue target of Rs 2475 billion set by the government for fiscal year 2013-14.

Bajwa also informed the Finance Minister about the notices issued to new income taxpayers as part of the campaign to increase the number of assessees.

The Finance Minister expressed the confidence that FBR would continue its efforts to collect taxes and facilitate the taxpayers in filing their returns.

In a separate meeting with the Governor State Bank of Pakistan, the Finance Minister reviewed the foreign exchange reserves and the balance of payment position. He directed the Governor SBP to redouble efforts to increase inflows as per plan. The Finance Minister also chaired a high level meeting which was attended by senior officials of Ministry of Petroleum and Natural Resources, Privatization Commission, Ministry of Com-

merce, Board of Investment, Income Support Plan and senior officials of Ministry of Finance.

The Secretary Petroleum informed the Finance Minister that 260mmcfd gas would be added to the system by December 2013 which would be dedicated for the power sector.

The officials of BoI gave various proposals to further improve the investment climate in the country and improve business environment.

The Finance Minister directed the Secretary Income Support Program to streamline the process of release of funds so that maximum number of families can benefit from the program.

Meanwhile, Sri Lankan High Commissioner HE Air Chief Marshal Jayalath Weerakkody called on Finance Minister Ishaq Dar at the Finance Minister’s office.

During the meeting they discussed the upcoming meeting of Common Wealth Heads of Government (CHOGM) being held in Sri Lanka in the middle of this month.

The High Commissioner invited the Finance Minister to the meeting and also requested him to address the Business Economic Forum being held on the sidelines of the conference.

The Finance Minister said that he was extremely grateful for the invitation which reflected the close fraternal relations that existed between the two countries.

The Sri Lankan High Commissioner also informed the Finance Minister that Colombo had concluded an agreement to purchase

Finance Minister expressed the confidence that FbR would continue its efforts to collect taxes and facilitate the taxpayers in filing their returns 100 cars manufactured by Toyota Pakistan. During the meeting the High Commissioner also informed Dar that the Joint Ministerial Eco-

nomic Commission between the two countries is scheduled to meet in Colombo on Noveber2728, 2013.

The High Commissioner said that both countries can cooperate in the fields of dairy and livestock, housing, construction and setting up of sugar industry in Sri Lanka to further strengthen their bilateral economic ties.

The Finance Minister expressed the confidence that economic ties between the two countries would grow further and thanked the Sri Lankan government for purchasing cars from Pakistan.

The Finance Minister said that Pakistan will provide all possible assistance to Sri Lanka in the development of their infrastructure and industry.

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04 PORTS&SHIPPING

NOVEMBER 12 - NOVEMBER 18, 2013

Customs seizes smuggled goods

KARACHI: The Model Customs Collectorate (MCC) of Preventive has seized huge quantity of smuggled merchandise goods and Iranian POL products that was arriving from Balochistan through buses from RCD Highway, a statement said. As a result of the fresh drive against smuggled goods launched under the directives of Customs Collector Preventive S M Tariq Huda, the Anti-Smuggling Organisation with the assistance of Pakistan Rangers has succeeded in seizing huge quantity of smuggled merchandise goods and POL products worth millions of rupees.

FBRaskedtorelease salestaxrefunds KARACHI

CUSToMS ToDAY REPoRT www.customstoday.com

raders have urged Federal Board of Revenue to pay their sales tax refunds pending for the last two years owing to unavailability of electronic link between the provincial sales tax departments and FBR. Towel Manufacturers’Association of Pakistan (TMA) Chairman Iftikhar Ahmed Malik and Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Chairman Amir Amin Kothawala, in their separate statements, asked FBR and Finance Minister Ishaq Dar to make early payment of outstanding refunds.

TMA Chairman Iftikhar Ahmed said that sales tax on services was being collected by Sindh Revenue Board (SRB) and Punjab Revenue Authority (PRA), whereas the exporters have filed their tax returns with FBR. Under the 18th Amendment the sales tax on services became a provincial subject from 2010, and Sindh took a lead by setting up a separate body SRB. Later, Punjab also formed PRA to collect sales tax on services.

However, with no link between FBR and provincial bodies collecting sales tax, the refund payment or adjustment was not possible and this was depriving exporters from much-needed funds.

Prgmea Amir Amin said that for the last several years the finance ministry had not released funds to pay outstanding refund claims of around Rs40 billion. He said exporters were facing liquidity crunch because of the huge backlog of refunds and were finding it difficult to meet their future export contracts.

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DPworldsells stakeinRussian terminalfor$290m P World has sold its 25% stake in Russian terminal Vostochnaya Stevedoring Co for US$230 million to Global Ports Investment as the company continues to dispose of its non-core assets.

Global Ports, who already hold a 75% share inVostochnaya Stevedoring Co, will take full control of the company later this week when the transaction is completed.

The Dubai-based terminal operator said that its minority share in the Russian company was more of a legacy investment with little managerial responsibility. Nevertheless, the sale is one of the more profitable assets in a series of disposals by DPWorld, who has sold off assets in Belgium,Yemen, Hong Kong and the UK already this year. DPWorld also lost its 60 percent share in Adelaide’s container terminal in July after local Australian firm Flinders Port exercised its right to buy.

According to the company’s half-year financial figures DPWorld has a net debt of US$3.5 billion. —CT Report

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Deep water container port to be operational in 2014 KARACHI

CUSToMS ToDAY REPoRT www.customstoday.com

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hairman of Karachi Port Trust (KPT) (retd) Rear Admiral Azhar Hayat said that Pakistan Deep Water Container Port (PDWCP) will start functioning by the end of next year to accommodate mother ships of post-Panamax class, having a length of over 350 metres and loading capacity of 8,000 TEUs (twenty feet equivalent unit).

The PDWCP, being developed at Keamari at an estimated cost of $1 billion, would initially have a draft of 16 feet with a provision of 18 metres to further meet economies of scale and rapid growth in sea-borne cargo of the country.

Though the PDWCP would have a total of 10 berths, initially four berths would start functioning next year where mother ships, having over 350 metres length would start calling which would place Pakistan amongst few countries having deep-water container port. Responding to a question, the KPT chairman said that marine protection work has fully been accomplished having three breakwaters and a sand dyke.

However, dredging and reclamation faced some delays and up to 76pc of work had been completed, he said, adding work on quay wall has been completed up to 60pc.

When a question was raised that since the PDWCP is almost besieged and marooned and has no direct connectivity with main arteries (roads) of the city, how port would start functioning, Hayat said that a bridge connecting the port through Boat Basin towards Jinnah Bridge would be con-

structed. He further stated that by developing new connectivity for the PDWCP through Boat Basin, it would also help reduce congestion on existing roads inside the port area.

He, however, said that there was a provision that in future a harbour crossing bridge would be constructed near oil piers at Keamari and land at Manora from where a connecting road to Northern Bypass would be made. Since this project needs huge funds of up to $1bn, its construction has temporarily been postponed, he added. The KPT chairman disclosed that a make-shift coal jetty would be developed at PDWCP and connected with a conveyer belt to the coal yard which is within the vicinity of the port.

Presently, he said the Karachi Port is handling around four million tonnes of coal per annum against an actual capacity of eight million tonnes. All these measures of enhancing coal handling capacity are being taken after looking into government policy of using coal as a ma-

Dredging and reclamation faced some delays and up to 76pc of work has been completed.Work on quay wall has been completed up to 60pc, says KPT Chairman Azhar Hayat

jor source for generation of electricity and in the coming years, he said, coal would become one of the biggest bulk cargo items of the port. He further stated that there are plans to introduce service of fast moving ship to carry perishable goods, like vegetables, fruits and meat from Pakistan to Gulf and the Middle East. Presently most of such commodities, including live animals, are being carried by country boats which take weeks to reach their destinations.

Talking about the capacity building of the existing port, Azhar Hayat said that the KPT has already deepened the draft to 13 metres of berths 10 to 14 at East Wharf and is going to widen the turn circle at berths 15 to 17 so that larger vessels with over 300 metres length could call at the port. The two container terminals at East and West wharves run by private terminal operators are presently operating at full capacity and KPT is striving hard to increase their backup area so that their capacity could be further increased.

IAG Cargo boosts Hong Kong freight hub HONG KONG

CUSToMS ToDAY REPoRT www.customstoday.com

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AG Cargo, the cargo business of British Airways and Iberia, is expanding its operations in Asia Pacific with the introduction of an additional air freighter service into Hong Kong.

With this new service, IAG Cargo offers customers six freighter flights into the territory per week, boosting Hong Kong’s position as an important hub for the carrier while supporting business growth in the region. The additional flight will commence on a scheduled basis from October 31 out of London and support the two daily British Airways flights into the territory.

Steve Gunning, Managing Director at IAG Cargo, commented, “Hong Kong is an incredibly important trade centre, not least for the

garment and consumer electronics sectors and we have seen good growth from the region to all destinations. Our additional capacity will be welcome as businesses gear up for the peak Christmas season and we expect to see increasing volumes of consumer goods com-

ing out of Hong Kong over the next few months.” The additional flight will be serviced by a Boeing 747-8 freighter and will depart Hong Kong airport at 0605 on Saturday mornings. The flight to Hong Kong will stop in Frankfurt and will return to London via New Delhi. The

service connects businesses to IAG Cargo’s network of 350 destinations and helps them take advantage of high-growth markets such as Latin America, where IAG Cargo offers one of strongest networks on the market.

Steve Gunning concluded, “The stop in India is a huge benefit for our customers as the Hong KongDelhi route is vital for a range of businesses. We believe our new cargo services in the region will offer us a real strategic advantage over the competition and helps further underline our core businesses differentiator: the strength and depth of our network.”

With this additional freighter, IAG Cargo now provides the Hong Kong market with around 700 tonnes of freighter lift a week in addition to the established line flights which can provide about 200 tonnes per week in the bellyhold of passenger aircraft.

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LAHORE

NOVEMBER 12 - NOVEMBER 18, 2013

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6,000kg non-customs paid cloth, one vehicle seized

LAHORE: Model Customs Collectorate’s anti-smuggling wing has impounded 6,000kg of non-customs paid cloth during a raid on Band Road. Sources said that the cloth was being smuggled to Shahalam Market from Peshawar, adding that the market value of the cloth is Rs3 million. They said that a case has been registered against the culprit. Meanwhile, another scout of the wing has seized a vehicle, Toyota VITZ, having No. ATT/795 and model No. 2006 from the same road.

Abolishing rice review committee

LAHORE

CUSToMS ToDAY REPoRT www.customstoday.com

ahoreTax Bar Association (LTBA) demanded of the Federal Finance Minister and Chairman Federal Board of Revenue to remove complexities in the PRAL system (Pakistan Revenue Automation Ltd) as it is creating multiple problems for taxpayers.The demand was raised at a meeting of LahoreTax Bar Association.

The meeting was presided over by the President (LTBA) Qari Habibur Rehman Zuberi and also attended by Secretary LTBA Ali Ahsan Rana, Zahid Pervaiz, Tufail Asghar, Khurram Shahbaz, Zulfiqar Ahmad and Anis Anjum among others.The LTBA President said that the government would not be able to meet revenue target for the year if the PRAL system was not made taxpayer-friendly and the problems in it were not removed immediately.

He on the occasion adopted a resolution calling for immediate changes in the PRAL system that has put the taxpayers in great troubles.The participants also expressed their dismay over the non-functioning of the system in the recent past.

They also called for improvement in the CRO Islamabad to enable it to help expansion in the tax net instead of creating undue hurdles.They also demanded of FBR to grant permission for submission ofWealth Statement as Short Document besides allowing submission of manual tax returns as there are a large number of businessmen who are unable to use online system.The LTBA President said that the Association had already forwarded a number of complaints to the authorities but to no avail. He said that the Chairman FBR should take stock of the whole situation.

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Highqualityproductsvitaltomaintain Pakistan’s tradecredibility:Dastagir Provision of all possible facilities to traders and business community is the philosophy of PMl-n government, which is making all-out efforts to ensure free and expanded economic activities in the country LAHORE

CUSToMS ToDAY REPoRT www.customstoday.com

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inister of State for Commerce and Privatisation Engineer Khurram Dastgir Khan has agreed with Rice Exporters Association of Pakistan (Reap) proposal for abolishing Quality Review Committee (QRC) inspection procedure and giving free hand to the association members to inspect the consignments.

However, he urged the Reap members to ensure quality of rice according to the speciTications of the demand.

The Minister further announced and assured for the establishment of Rice Technical Training Centre and for this purpose the Tinancial assistance would be provided by the government from Export Development Fund (EDF).

Minister of State for Commerce and Privatisation, Khurram Dastagir Khan stated that provision of all possible facilities to traders and business community is the philosophy of PML-N government, which is making all-out efforts to ensure free and expanded economic activities in the country. He said this at a dinner hosted by Rice Exporters Association of Pakistan (REAP) at a local hotel.

Rice Exporters Association of Pakistan (Reap) Chairman Chaudhry Masood Iqbal highlighted various concerns of rice exporters on Quality Review Committee. He said that under the control of TDAP, QRC has become highly conflicting and controversial organisation resulting in discour-

— Exclusive Customs Today photo

lTbAseeksremoval ofcomplexitiesin PRAlsystem

aging exports of Basmati Rice.

While, former LCCI president Shahzad Ali Malik, other REAP office-bearers from different parts of Pakistan and a large number of the rice sector community was also present on the occasion.

Khurram Dastagir said that PML-N government was striving to maintain a partnership relation between the public and private sector by incorporating the traders and industrialists’ plausible suggestions in the economic policy-making process.

He said, the Commerce Ministry meant for taking such measures that lead to expand trade and economy and “we want the economic activities to be done in free and responsible manner, and increase the

The Minister of State for Commerce assures the REAP members that Commerce Ministry would take early steps to resolve their problems

export volumes by competing in the international markets.”

However, the trade community had a major responsibility of focusing on product quality and meeting international accreditations to maintain Pakistan’s trade credibility in the comity of nations, he stressed.

The Minister of State for Commerce and Privatization also assured the REAP members that Commerce Ministry would take early steps to resolve their problems such as establishment of technical institutes for rice; signing of currency swap agreement with Iran; checking the working and utilization of funds of QRC Rice Inspection Cell as well as the usage of Export Development Fund (EDF).

ResumptionoftomatoimportfromIndiareduceslocalprices LAHORE

CUSToMS ToDAY REPoRT

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he resumption of import of tomato from India has reduced wholesale rates of the commodity by Rs300 per 22 kilogram crate.

According to customs ofTicials at Wagah border, almost 35 trucks carrying tomato entered Pakistan after clearance last week. They pointed out that the supply was stuck at the Indian side due to holidays.

However, work was kicked off on the Indian side of the border to en-

— Exclusive Customs Today photo

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sure that massive trade consignments, mainly comprising perishable items, were cleared for entrance inside Pakistan. The delay in supply of perishable items increased the rates of tomato in Pakistan and onion in India.

India has been facing an acute shortage of onion this season as monsoon rains destroyed their domestic crop. To meet demands, India has been relying on imported onion from Egypt, Sri Lanka and Pakistan. Indian imported tomato was sold in the wholesale market between the range of Rs 2,150 to Rs 2,200 per 22 kilogram crate each against previous rates of Rs2,500

to 2,600 per crate.

At present, the retail price of tomato in Lahore and adjacent districts range between Rs160 to Rs200 per kilogram. The price is expected to come down after resumption of supplies from India in the coming week.

Vegetable importers of Lahore said the rates of tomatoes pushed upwards after hoarding and an artiTicial shortage was created which pushed the rates to a new high.

However, they believed that this hike was temporary and local supply of tomatoes would start from Sindh and Sawar crops during the next two weeks.

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SPECIALREPORT

NOVEMBER 12 - NOVEMBER 18, 2013

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SPECIALREPORT 07

NOVEMBER 12 - NOVEMBER 18, 2013

PORTS&SHIPPINGINDUSTRY

bACKonTRACK KAMRANMICHAEL

From page 01

The government will provide complete security to the domestic and foreign investors.

Security at ports has already been enhanced and we are also deputing marine soldiers at ports.

In addition, Pakistan is also going to sign an MoU with Sri Lanka soon after which Sri Lanka will start using our tankers for oil trade.

For the dredging at Gwadar Port, the government has allocated Rs.1 billion in order to accommodate bigger vessels and continue maintenance of the port, Michael said and added, “We are also pushing China to market the port internationally and fetch considerable business for making Gwadar Port a success.

We will invite all the neighboring countries as well to utilize the port.” “The government of Holland has assured us help in building Gwadar Fish Harbour on modern lines – they will also provide Tiber Tishing boats,” he added.

He stressed that government jobs from grade 115 should be given to Baloch people and the chairman of the port should also belong to the province.

He has recommended three names for the post from Balochistan to the Prime Minister. He said that Gwadar Port is practically functional and till now 221 sea marines are deployed there to handle import of wheat and urea. Infrastructure for 4 berths is Tinalized and 5 more berths will become functional very soon.

He said that underdeveloped road infrastructure is the major problem in Gwadar, as soon as roads are developed the port will start showing 100% results and enhance the trade in the region. China Planning Division in collaboration with Pakistan Planning Ministry is working on it and they will establish a network of all important roads and link roads in the area. The government is keen to connect Gwadar to Kashgar and in this regard, Rs.31 billion have been reserved.

Answering to a question, he said, “In Sindh the previous government completed 60% work on Deep Water Container Port at Keamari, Karachi and now this is our duty to complete the remaining project and we will eliminate the defects of the project. We manage 97% of the total trade through Karachi ports and out of that 40% portion is of Karachi alone. Thirteen meters deep sea provides space to only 1,000 tons of container ships at Karachi ports but we are trying to develop a 17 meters deep water port at Keamari so that 2,000 tons of container ship can easily board in the sea.

He said that Pakistan National Shipping Corporation was in tatters when he took charge as Ports and Shipping Minister. There were only 3 oil tankers and 7 bulk ships but we are buying 4 new oil tankers and 15 more bulk ships. He said, “We have to buy 74 charter ships because we are paying heavy rent in dollars. We are in contact with an international company of Athens to buy charter ships and oil tankers.

They will be providing 18 oil tankers and 22 bulk ships on immediate basis. The revenue generated by 4 of these ships will be given to the company as installment.”

Kamran Michael said that the Ports & Shipping Sector in Pakistan has huge potential and all efforts are being put down to resolve all the problems to

generate revenue from it. To enhance exports, we have developed a textile city covering area of 1320 acres at Port Qasim. We are also looking forward to install a 600MW coal plant at Port Qasim with assistance of international companies and this will be completed in 2 years period. He said with completion of this project it is hoped Pakistani businessmen will return back to the country.

Replying another question, he said that the government will provide complete security to the domestic and foreign investors. Security at ports has already been enhanced and we are also deputing marine soldiers at ports. In addition, Pakistan is also going to sign an MoU with Sri Lanka soon after which Sri Lanka will start using our tankers for oil trade.

He said that unfortunately ship-breaking industry at Gadani is completely shattered. There was a time when Pakistan’s ship-breaking industry was on top of the list in the region but now it is led by Bangladesh, he concluded.

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08 EDITORIAL

NOVEMBER 12 - NOVEMBER 18, 2013

Founder & Chairman Zulfiqar Ali Editor nasim Ahmed Deputy 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

Achieving the tax target

D

espite the difficult history of revenue collection over the last few years, the government set the ambitious target of Rs.2475 billion for the current year. The original tax collection target in the 2012-13 budget was Rs2,381 billion which was later revised downward to Rs2,191 billion. Half way through the year the target was further slashed to Rs2,050 billion and then to Rs2007 billion. The actual collection at the end of the day was Rs. 1950 billion.

The target is not only overarching but also onerous, and FBR is going all out to achieve it, marshalling all the resources in its arsenal. In his meeting with Finance Minister Ishaq Dar last week, Chairman FBR Tariq Bajwa said that there was no let-up in the Board’s efforts to reach the revenue target. Bajwa also informed the Finance Minister about the notices issued to new income tax payers as part of the campaign to increase the number of assessees.

Tax collection in Pakistan is no easy undertaking.The taxman going about his task comes up against one wall after another. Not to speak of the man on the street, even persons of considerable means and prosperous businessmen don’t think it is obligatory to file returns and pay tax. Less than 10 percent in a population of over 180 million are tax payers.

Sixty seven percent of our legislators, all rich and powerful individuals, don’t pay taxes. On the other hand, agriculture, accounting for over 23 percent of GDP, is exempt from income tax.

Last year the government announced three tax amnesty schemes, but they failed to yield the desired results.

FBR has now devised many innovative methods to collect more taxes like establishing a national database and getting details of bank accounts whose holders are outside the tax net. Thousands of notices have been sent out to potential tax payers but the response has been poor.

Despite all the daunting odds, FBR is gamely battling on. The takings in the first quarter are close to the target which is not bad given the fact that tax collection gathers pace as the fiscal year wears on. According to FBR, more than 500,000 potential tax payers have been identified who will be brought into the tax net

by December 2013.

Section 114 of the Income Tax Ordinance (as amended up to June 2013) provides an exhaustive list of persons required to file income tax returns, including property and vehicle owners, members of chambers of commerce and industry or any professional body. But this legal provision is openly flouted.

According to an estimate, the number of those required to file income tax returns under the law is about 12 times the existing number of filers. One way to boost tax revenue is to bring agriculture within the tax net. Secondly, FBR should be empowered to initiate punitive action against powerful non-tax payers who are not contributing their bit to the national exchequer. These are the essential first steps to improve the abysmally low tax-to-GDP ratio.

world Islamic Economic Forum LAHORE

nASIM AHMED

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T

he three-day World Islamic Economic Forum held in London last week was a landmark event which focused attention on the growing importance of Islamic Tinance in the global economy.

Established in 2003, the Forum was designed to be the business face of the Organisation of Islamic Conference with the aim of enhancing the economic well-being of the people of Muslim nations through trade and business cooperation. This was to be done by packaging the Muslim world as an attractive trade partner and making the forum a site for the exchange of ideas, information and knowledge as well as the opportunity to do business.

Called the Davos of the Muslim world, the Forum was organized

for the Tirst time in a non-Muslim majority country. It brought together 17 global leaders, 11 ministers, Tive central bank governors and more than 1,500 delegates from 120 countries for discussing issues relating to Islamic Tinance.

Its main purpose was to identify a road map for the future of the Islamic economy.

Islamic Tinance is now a major force in global economics. It is playing a major role in shaping the global economic and physical landscape. The value of Islamic Tinance and investment is expected to reach $2.5 trillion by 2017 and the Islamic economy as a whole is estimated to be worth $8 trillion.

Islamic banks are steadily growing in importance and reach across the globe.

The selection of London as the venue underlined its growing importance as a centre of Islamic Tinance. Britain’s 2.78 million Mus-

lims have a spending power of £20.5 billion and contribute more than £31bn to the UK economy. The event provided Britain an opportunity to position itself as the western hub of the Islamic Tinance industry. Speaking at the forum British Prime Minister David Cameron said: “With some of the world’s fastest growing markets in Muslim majority countries, demand for Islamic Tinance is growing and this presents major opportunities for the UK. I am determined that we do everything we can to make Britain the best place to start, grow and do business and this demonstrates that we are a global partner of choice for Islamic Tinance with the expertise, innovation and services that are fundamental to the industry’s growth.”

It may be mentioned here that an Islamic Finance Task Force was established in UK in March this year to encourage the setting up of

Sharia-compliant products. Last week Cameron announced plans to make government Tinance schemes that were compatible with Islamic Tinance principles available to Muslim students and entrepreneurs.

Speakers at the forum highlighted the role Islamic Tinance can play in accelerating growth in the Muslim lands, but PM Nawaz Sharif’s speech at the forum was the one which captured the spirit of Islamic economics. He drew attention to the inequality inherent in the capitalist system and called for a system of globalisation where the free movement of capital and goods would also be accompanied by the free movement of labour.

Although some Muslim countries are very rich, the Muslim world as a whole is poor, especially its teeming millions. It is here that Islamic Tinance can play its due role. The London moot can be seen as a step in that direction.

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PICTORIAL

NOVEMBER 12 - NOVEMBER 18, 2013

Rs3m worth of smuggled cigarettes, cigars seized

Federal Board of Revenue (FBR) Inland Revenue Intelligence has impounded millions of rupees worth of smuggled non-duty paid cigarettes and cigars from an outlet of a popular chain of tobacco at Qadafi Stadium. The Inland Intelligence seized cigarettes and cigars following the none-compliance of the notice served upon the owner of the tobacco shop. Sources said that FBR team confiscated non-customs duty and FED paid cigarettes of English, German and French without health warning.

KARACHI: State Minister for Commerce Khurram Dastagir addressing the audience on the occasion of Towel Manufacturers Association of Pakistan.

KARACHI: Salim Azhar of Pakistan Society for Training & Development presenting shield to Federal Minister for Planning & Development Ahsan Iqbal.

KARACHI: Spokesperson for FBR Shahid Hussain Asad, MD International Tax Services Deloitte LLP Dubai Ali Kazimi, Deputy Governor SBP Ashraf Mahmood Wathra and others at a seminar.

KARACHI: Sindh Chief Minister Syed Qaim Ali Shah presenting gold medal to former KATI chairman Zubair Chhaya.

KARACHI: A group photo of Chairman SITE Super Highway Association, Javed Ali Ghori, Jamshed Chandiwala, Raja Ilyas, Shahenshah Alam, Shaheen Ilyas Sarwana and others at the occasion of visit of Senator Abdul Haseeb Khan.

ISlAMAbAD: ICCI President and Mushaid Hussain Syed posing for Customs Today at International Workshop on "Doing Business with China" at a local hotel.

ISlAMAbAD: Danish Minister for development Cooperation Christian Friis Bach was talking at the launching of $50 million development program for Pakistan 2013-2016. Tariq Fatemi, Special Assistant to Prime Minister, was also present on the occasion.

— Exclusive Customs Today photos

09

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10 NATIONAL

NOVEMBER 12 - NOVEMBER 18, 2013

Dubai Customs launches gold valuation training

DUBAI: The Dubai Customs Training Centre has inaugurated a new training course specialised in gold and jewellery valuation. The training course is in line with Dubai Customs’ commitment to building staff capabilities and strengthening their qualifications, thereby enabling them -with high efficiency-to better protect UAE ports, and to promote legal trade internationally. The design of the new Gold and Jewellery Training package is on the list of the Centre’s 2013 priorities and is intended to address recent changes in the global business environment.

Directorate ofWeBOC confirms use of automated system for goods clearance irectorate of Web Based One Customs (WeBOC) has confirmed that only automated system should be used for clearance of goods, sources disclosed. The instructions have been issued following reports that the Preventive Staff posted at off-dock terminals and AFU have been demanding hard copies of import documents for the clearance of consignments, sources added FBR has installed hassle-free automated system at all Customs stations to facilitate trade. But the new requirement of producing hard copies of documents was creating difficulties for traders.

Despite past experience that clearance on hard copies may lead to unauthorised removal of consignments, preventive staff demanded the same from importers/clearing agents for gate out activity.

Similarly, staff at off-dock terminals made production of hard copies of Goods Declarations (GDs), a necessary condition for payment of charges and release of consignments from terminals.

When contacted, official sources said that the office of Director, Web Based One Customs (WeBOC), has taken strict action to avert said practices, saying that instructions were made to clear all consignments, whether cleared through One-Customs or WeBOC after confirmation from computer system; no reliance should be placed on the basis of hard copies of the documents. —CT Report

D

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

Customsofficialsseizesmuggled goodsworthRs19.4min15days KARACHI

SoHAIl RAb KHAn www.customstoday.com

T

he Anti-Smuggling Organisation (ASO) of Model Customs Collectorate (MCC) Preventive, Karachi has detected 21 cases of smuggling during 15 days from October 20 to November 4 and recovered different smuggling goods worth Rs19,376,652.

The anti-smuggling organisation has seized different smuggled goods loaded in a Quetta-Karachi bound passenger bus during a raid on RCD Superhighway on Nov 4.

The smuggled goods included 39,212yard polyester cloth worth Rs1,051,266; blankets weighing 2,702Kg worth Rs681,661; 655Kg cloth worth Rs305,492; 347 LED torches (Made in China) worth Rs277,600 and 28 Iranian carpets worth Rs138,903.

The cases ASO-121-2013; 122-2013; 123-2013 and 124-2013 have been registered against the accused smugglers.

In another raid on Nov 2, the ASO conTiscated 71 plastic drums containing 4,900litre of diesel worth Rs539,000; used assorted auto parts worth Rs311,004; 29 auto engines woth Rs377,400; two auto bodies of Hino Cabin worth Rs120,000; two used auto bodies of Hi-Lux cabins of Rs220,000; 40 rolls of Sofa/curtain cloths worth Rs652,960 and 450 old/used tyres worth Rs789,912; 70 CNG cylinders costing Rs674,160; 41 new tyres worth Rs614,474; 89 LED Smart TVs costing Rs4,152,407. The ASO also registered cases numbers ASO-119 and 120 against the accused persons.

Similarly, the Customs ofTicials foiled six bids of smuggling last month and during a raid on Oct 31, the ASO seized a smuggled vehicle Toyota Land Cruiser (Prado) Jeep, Registration Number BF-9222, Chassis No. JTEBZ-29J800055300, Engine No. 0961571,

Model 2005, capacity 2982CC costing Rs3,236,539 from port. The case number ASO-116-2013 has been registered against the smugglers.

On Oct, 30; the ofTicials apprehended a car Toyota Mark X, 250G-Four Bearing Chassis No. GRX-125-0005737, Engine No.4GRFSE, capacity 2499CC, Model DBA-GRX-125AEAZH-L, Model 2005, Silver Colour, Reg. No.PZ-406 from port.

In another raid on Oct 30, the ASO seized 28 bundles containing 17,500 ladies suits worth Rs699,600. The case number ASO118-2013 has been registered against the accused.

The Customs ofTicials, during an operation on Oct 29, seized a smuggled Shehzore Truck worth Rs250,000 and registered a case ASO-117-2013. In another raid on the same day, they conTiscated 15 air-conditioners (Panasonic), Brands CS-YC 18 MKF5, made in Malaysia worth Rs452,610. The case number ASO-117-2013 has been registered against the culprits.

The ASO also foiled a bid of smuggling on Oct 24 and seized 29PP bundles containing total 260 rolls of ladies cloth costing Rs941,600.

The smuggled goods included 39,212-yard polyester cloth worth Rs1,051,266; blankets weighing 2,702Kg worth Rs681,661; 655Kg cloth worth Rs305,492; 347 lED torches (Made in China) worth Rs277,600 and 28 Iranian carpets worth Rs138,903.

Transporters demand adequate security To, The Prime Minister, Mian Muhammad Nawaz Sharif Respected Sir,

We – members of United Goods Transporters (UGT) and Transporters of Goods Association (TGA) -- are concerned over inadequate security on the roads leading to Pakistan International Container Terminal (PICT) and Karachi International Container Terminal (KICT), where thousands of containers are off-loaded on regular basis and around 6,000 to 7,000 vehicles hit the roads daily along with goods.

We suffer huge losses due to deteriorated law and order situation in Karachi, as our loaded vehicles are looted at gun point. Dozens of loaded trucks have been

looted by armed men from East and West wharfs due to inadequate security.

The police patronize criminal elements, as the transporters have registered several complaints against looting incidents of their vehicles, but no action has yet been taken in this regard.

We appeal to you to order issuance of compensation for our torched vehicles, which had been set on fire by criminals.

We also want increased security on the roads leading to KICT and PICT and deployment of honest officials from police and other law enforcing agencies to avoid such incidents in future.

With profound regards, Khursheed Alam Vice President TGA, Karachi

www.customstoday.com NOVEMBER 12 - NOVEMBER 18, 2013

Customs impounds 6,000m suiting cloth

LAHORE: Model Customs Collectorate (MCC) Lahore’s anti-smuggling unit Monday confiscated 6,000meter cloth being smuggled from Peshawar to Lahore. Sources said that anti-smuggling team raided a truck containing illegal non-Customs duty paid 6,000 meter suiting cloth at the Faizpur Interchange and impounded the same on the spot. The sources said that the Customs authorities have registered a case against the responsible.

CARTOONSSPECIAL

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NOVEMBER 12 - NOVEMBER 18, 2013

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