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vol 1 Issue no. 41
karachi, tue nov 26 - Mon dec 2, 2013
Weekly
Regd. no, Mc-1381
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WIdenIng the tAx net
Increasing the tax-to-GDP ratio to 15 percent is our first priority and in order to get successful results, says Finance Minister Ishaq Dar | See PAge 02 |
Kamran Michael announces to waive off demurrage charges at various ports of Pakistan to provide relief to business community | See PAge 05 |
— Exclusive Customs Today photos
WAIvIng oFF deMuRRAge
PuRSuIng PRIvAtISAtIon
ISLAMABAD
FAIZA ISRAR
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The govt will not use a simplistic evaluation methodology for determining the prices of entities which will be offered for privatisation, says Khurram Dastagir | See PAge 04 |
MonItoRIng oF duty
Member Customs Nisar Muhammad says FBR is minutely monitory collection of customs duty to increase revenue | See PAge 06 |
odal Customs Collectorate, Islamabad Collector Imtiaz Ahmed Warriach expressed the hope that the department would achieve revenue target set by the federal government for Liscal year 2013-14. In an exclusive interview with Customs Today, he said that out of this year’s total target of Rs10,100 million, the department would collect Rs3,825 million as customs duty, Rs3,570 million as sales tax, Rs368 million as federal excise duty and Rs2,310 million as withholding tax. Collector Imtiaz Ahmed asserted that the Collectorate has always attained its targets, adding, “We are working hard to collect revenue and very close to achieve this year’s target too.” Describing the main problems faced by the Collectorate, he said that no new recruitment has been made for the last 15 years and the department’s most of the Lield staff is above 50 years of age. “This is a very important department
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and all the staff should be well-equipped and trained as per the latest rules and ways of working being practised at the world level, but unfortunately no step has been taken by the authorities concerned in this regard,” he added. The Collector suggested that the government should provide the department with advanced weapons, new vehicles and training as the criminals, the staff has to face, are equipped with sophisticated weapons and vehicles. Highlighting the performance, he said that during last 2-3 weeks, Islamabad Model Customs Collectorate seized 200,000 yards cloths, being smuggled from Peshawar to Lahore through motorway. He said that during the last two months, the MCC recovered about 23kg of non-customs paid gold which was being transferred from Dubai to Pakistan. He maintained that in another case, the Collectorate took into custody Rs170 million currency which was being transferred abroad illegally through hundi. In another case, he said, the department seized a huge quantity of liquor stolen from the containers of Interna-
IN ANOTHER CASE, THE COLLECTORATE TOOK INTO CUSTODY
RsMILLION 170
CURRENCY WHICH WAS BEING TRANSFERRED ABROAD ILLEGALLY THROUGH HUNDI
tional Security Assistance Force (ISAF). Imtiaz Ahmed said that the MCC also seized expensive watches worth Rs10 million. He pointed out that though there is no customs duty on export but the seizure revealed that the watches were imported illegally, adding, “Now the department is investigating that where from these expensive watches were imported.” Collector Imtiaz elaborated that the basic duties of Collectorate are to enforce customs laws, collect revenue and facilitate international trade. While to talking to Customs Today, Deputy Collector Asif Hargan said that the Model Customs Collectorate has its own line of action and the all ofLicials are working very hard to achieve their targets. He said, “We have two main ofLices where our Lield ofLicers perform their duties apart from headquarters of Customs Collectorate and they are located at Islamabad Dry Port and Airfreight Unit.” To a query, he said that whenever a corruption case is discovered, the accused is punished and everybody whether he is an MCC ofLicial, customs agent or importer, all are equal before the law.
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02 LAHORE
NOVEMBER 26 - DECEMBER 02, 2013
200,000 toxic toys seized by uS customs
PORTLAND: US Customs officials seized at least 200,000 toy dolls being imported from China at the Port of Portland due to toxic plastics, officials said. US Customs stopped ten shipments containing some 200,000 toys with high levels of the banned chemical compound phthalate. Authorities also seized shipments at ports in Chicago, Dallas, Los Angeles, Norfolk, Memphis, Newark and Savannah. According to US Customs and Border Protection, the shipments had been under scrutiny since April.
tax-to-gdPratiotobeincreasedto15pc:dar
— Exlusive Customs Today photos
LAhoRe: Finance Minister Ishaq dar addressing the participants of a meeting during his visit to LccI and FBR chairman tariq Bajwa also accompanied him.
Lahore chief collector of customs Lutfullah virk
collector of customs (Preventive) Junaid Akram and collector customs (Appraisement) Zeba hai Azhar
Member IR operations Muhammad Ashraf khan Irfan Qasier Sheikh
Aftab vohra
LAHORE
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aretaker government’s commitment with the IMF forced the PMLN government to impose additional taxes. Under new rules of Federal Board of Revenue (FBR), no businessman will be victimised unduly to broaden tax net. Only new people would be brought into tax net. This was the crux of the speech of Federal Finance Minister Ishaq Dar during his long pending visit of the Lahore Chamber of Commerce. Chairman Federal Board of Revenue Tariq Bajwa, MCC Lahore Chief Collector of Customs Lutfullah Virk, Collector of Customs (Preventive) Junaid Akram, Collector of Customs (Appraisement) Zeba Hai
Azhar and prominent businessmen including LCCI Acting President Mian Tariq Misbah, Iftikhar Ali Malik and Irfan Qasier Sheikh and others were also present on the occasion. “Increasing the tax-to-GDP ratio to 15 percent is our Lirst priority and in order to get successful results in this regard new taxpayers who have been evading the taxes will be registered on merit basis. There will be no harassment (on the part of FBR). Article 165-A is tax evaders speciLic. Not a single (tax) registered person has been issued notice under 165-A. Recent taxes have been imposed to fulLill the caretaker government’s commitment with the International Monetary Fund (IMF),” Dar said. “We will expand the net through friendly measures by facilitating the taxpayers instead of squeezing those who are already paying taxes. The present regime was focusing
on reviving the economy by narrowing down foreign account and budget deLicit in the next Live years. A three-year economic revival plan had already put into motion,” he added. Dar said, “We will not allow speculators to manipulate the forex market for their petty personal gains. We will not permit a few (speculators) to take the whole economy of the country hostage and cause a huge Linancial loss to the entire economy”. Talking on the recent billion of rupees loss to the economy due to transporters strike, the Minister said he had detailed discussions with all the stakeholders and goods transporters have resumed their work. The Finance Minister also announced to constitute two committees comprising former LCCI president Mian Ashraf, Sheikh Asif, Mian Anjum Nisar, Iftikhar Ali Malik and FBR chairman Tariq Bajwa to look
into the issues regarding steel industry, under-invoicing, smuggling and sales tax refunds. The recommendations of the committees would be implemented in letter and spirit, he said. He said the interest rate was the domain of the central bank. The recent increase in interest rate was a result of inLlation and dollar-rupee parity. Efforts were under way to control inLlation, he added. Currency swap arrangements were being made with a number of friendly countries to minimise dependence on the US dollar. Tariq Bajwa said that FBR and businessmen are the wheels of a same vehicle which need to work with mutual understanding and harmony in the larger national interest. The FBR chairman assured the business community his full support in order to resolve their genuine problems, adding that any businessman can
directly contact him. Putting up business community’s grievances before the Finance Minister, Mian Tariq Misbah acknowledged that the business community is well aware of the hardships of the government. The government after taking over the charge faced a number of challenges including power outages, low economic growth, mounting circular debt, falling investment, huge Liscal deLicit, rising inLlation, unprecedented Lloods, terrorism and worst law & order situation, he elaborated. Acting LCCI president Mian Tariq Misbah urged the government to take corrective measures to address the prevailing law and order situation in Karachi, tackle the issue of circular debt and reduce the duration of load-shedding. He also called for taking a note that markets were Llooded with smuggled goods, causing huge losses to exchequer.
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NOVEMBER 26 - DECEMBER 02, 2013
IAtF meeting discusses strategy to curb menace of smuggling
KARACHI: A meeting of the Inter Agency Task Force (IATF) was held at Regional Directorate of ANF, Clifton, Karachi under chairmanship of Brig. Muhammad Abuzar. All the officials discussed the future strategy to curb the menace of smuggling. The meeting was also attended by the Director General, Headquarters Pakistan Coast Guards; the Additional Collector Customs (Preventive), the Director Customs Intelligence & Investigation, Deputy Director General, Pakistan Maritime Security Agency, Karachi and Port Intelligence Officer, Karachi.
Five kidnapped customs officials recovered ISLAMABAD
customs officials to clear stuck-up containers at ports soon FBR is striving hard to widen the tax net and facilitate tax payers. At newly-established 212 kiosks, officers of FBR will assist the taxpayers for filing of their returns, says FBR Spokesperson Shahid hussain Asad
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ive out of six kidnapped Customs officials have been recovered, sources told CustomsToday. Director General Investigation & Intelligence Riaz Khan said that kidnapping of customs officials in Jewani area of Gwadar was a serious matter which cannot be tolerated. He said that this is the first time that customs officers were kidnapped in a large number. He said that 12 armed kidnappers intercepted customs officials and took them to an unknown place. He hoped that law enforcement agencies would soon recover the remaining customs official. It is pertinent to mention here that six Customs officials including an Inspector Preventive Service (IPS), three Senior Preventive Officers (SPOs), a driver and a cook were kidnapped by unknown armed men. According to the details, abducted Customs officials were on their routine patrol in the area of Jewani Zero Point, about 60 kilometres west of Gwadar, when some unidentified armed men intercepted their vehicle and abducted all the six officials and took them to an unknown place. The names of the abductees are Manzoor Jamali (IPS), Saleem Rashid (SPO), Hassan Junaid (SPO), Abdul Samad (SPO) andYaqoob (driver).The cook’s identity could not be ascertained.
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— Exclusive Customs Today photo
— Exclusive Customs Today photo
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inance Minister, Senator Ishaq Dar has directed that the ofLices of Customs and relating banks in Karachi shall remain open on Saturday with immediate effect to clear deadlock and stuck up containers due to recent strike of transporters leading to nonclearance of thousands of containers by Customs and Ports Authorities. The Finance Minister took this decision while presiding over a high level meeting to review the performance of Federal Board of Revenue which he visited on Tuesday in the afternoon. The Finance Minister took this decision in view of the situation arising as perishable goods like DFP, Urea, Onions and other exports and imports goods were stuck up, affecting the business community as well as the common man. The Finance Minister also directed that FBR should detail Lield Inland Revenue OfLicers and facilitate taxpayers for Liling of their returns. In this connection all Lield Inland Revenue OfLicers would now be available on Saturday in their ofLices to assist and facilitate the taxpayers in Liling of their returns. The Inland Revenue OfLicers shall attend ofLices on all Saturdays and perform their duties as normal till midnight November 30, 2013. The Finance Minister was told that more than 212 Kiosks have also been established throughout the country at important places including business centres to assist and facilitate the taxpayers for filing of their returns. The meeting which lasted for over 4 hours
FBR Spokesperson Shahid hussain Asad also discussed various proposals to encourage and facilitate taxpayers as well as to provide relief to the business community. The Finance Minister directed the officers of FBR to take necessary steps for collection of revenue and achieve the targets set by the Government as it is critical for the fiscal stability of the country. Chairman FBR Tariq Bajwa, briefed the Finance Minister on the overall efforts which are being made by FBR to assist and facilitate the taxpayers, business community as well as an over view of the tax collection of the Board. The Finance Minister appreciated the efforts being made by FBR for achieving the targets set by the Government and
assured the senior ofLicials of FBR that the Government would provide them necessary facilities and support for the purpose. The Finance Minister was also briefed separately on issues relating to Customs, Sales Tax, Income Tax and Federal Excise Duty which were discussed threadbare. The meeting was attended by the Members of FBR and Senior ofLicers of Ministry of Finance. While talking to Customs Today, FBR Spokesperson Shahid Hussain Asad said FBR is striving hard to widen the tax net and facilitate tax payers to Lile returns of income. At newly-established 212 kiosks, ofLicers of FBR will assist and facilitate the taxpayers for Liling of their returns.
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04 NATIONAL
NOVEMBER 26 - DECEMBER 02, 2013
24kg gold worth $1.1m recovered from aircraft’s toilet
KOLKATA: Around 24 kg gold worth $1.1 million was recovered from the toilet of an aircraft at the NSC Bose International Airport in Kolkata, India. The cleaning staff found two unclaimed bags in the toilet of the aircraft which had come from Bangkok. A similar incident also took place at Hazrat Shah Jalal International Airport in Dhaka, Bangladesh, less than a month ago where authorities had found 33 kg gold in a toilet of an aircraft.
he Directorate General of Intelligence & Investigation (Customs) Karachi has uncovered a scandal of under invoicing on the import of kraft liner board and sack kraft paper. Meanwhile, Directorate General of CustomsValuation Karachi has released new Customs values of above said items under section 25-A of the Customs Act, 1969 for accurate assessment of Customs duty at import stage. Directorate General of I&I-FBR, Regional Office, Karachi sent a complaint regarding under invoicing on the import of kraft liner board and sack kraft paper to Directorate General of CustomsValuation, which issued new valuations of the mentioned goods to reflect the current price trend in the international markets. The authorities concerned held meetings with stakeholders, which was attended by representative of importers and manufacturers of paper products. As per ruling, kraft liner board and sack kraft paper shall be assessed to duty/taxes at the new Customs values. In cases where declared/transaction values are higher than the Customs values determined in the Ruling, the assessing officers shall apply those values in terms of SubSection (1) of Section 25 of the Customs Act, 1969. In case of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the Customs values determined in the Ruling. —CT Report
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FBRnottoextend employmentperiodof officersondeputation BR has imposed a ban on extension in employment period for any officer working on deputation in various departments. An FBR official said,“We have conveyed to all field formations that FBR will not provide replacement against any officer if he or she will be granted a leave for availing any scholarship abroad.” FBR is also discouraging officers, frequently availing vacations by presenting various excuses by using administrative and political influence, said the official. This ban on deputation has been imposed at a time when FBR is facing the task of achieving tax collection target of Rs 2,475 billion for the current fiscal year.Therefore, it seems human resource constraints would really make it difficult or perhaps impossible to achieve the target. The official said that FBR was facing numerous human resource constraints for running its affairs in an effective manner. Dozens of officers belonging to both Inland Revenue Service and Customs groups were working in various ministries on deputation basis for the last several years, he added. —CT Report
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Privatisation process to be transparent, says khurram dastgir PIA’s accumulative losses are Rs250 billion, while the PSM’s accumulative losses stand at Rs108 billion ISLAMABAD
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tate Minister for Commerce and Privatisation Engineer Khurram Dastgir has said that the government will not use a simplistic evaluation methodology for determining the prices of entities which will be offered for privatisation, as it will also consider future streams of payments. The minister said that the government has decided to consider the future revenue streams of public entities in the price determination methodology for privatisation purposes, as heavy losses incurred by the Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) have reduced chances of getting a good price if reliance was only made on traditional benchmarks. It was for the Lirst time that any senior government functionary openly appeared to sell the government’s privatisation policy in a bid to address increasing concerns about the prospects of selling about three dozen entities, and the future of their employees. “The accumulative losses of PSM and PIA have increased to Rs358 billion”, said the minister. “PIA’s accumulative losses are Rs250 billion, while the PSM’s accumulative losses stand at Rs108 billion”, he added. Dastgir said that the government does not have the resources to make the necessary investment in PSM and PIA. “These institutions cannot be run in the present condition, and, if the bleeding continues, the coming governments will not have resources to meet social obligations,” said Dastgir while reiterating his government’s commitment to the pri-
— Exclusive Customs Today photo
DirectorateGeneral CustomsI&Iuncovers under-invoicing
vatisation policy. He said that the Council of Common Interests (CCI) had in the past years approved 65 entities for privatisation. The government has identiLied 10 to 12 entities that will be offered either for strategic partnership or be taken to the capital markets in the Lirst phase, said Dastgir. He said these entities will be placed before the CCI again and a meeting will be called shortly. Dastgir said the Lirst phase of privatisation will be completed within a year. In response to a question, Dastgir maintained that CCI’s past decisions were legally intact unless the newly-constituted CCI decides to revisit them. The Privatisation Commission Board will decide to hire Linancial advisors in the next month for the identiLied entities, said the minister. These advisors will be responsible for evaluating each entity, said Dastgir, but added that the board could disagree with their evaluation and ask them to work out the base price again. He said the appointments of Linancial advisors and commitment to reforms were critical for the success of the privatisation process. The IMF has also imposed a condition on the government to appoint six Linancial advisors in this Liscal year. He said that the government decided to transfer 26% of the shares along with the management control of the entities where applicable. “It is not privatisation but a public private partnership to stop haemorrhaging,” he added. Dastgir said the availability of liquidity in any particular sector will determine the numbers of transactions in that sector. “The IMF’s interest was not what steps the government takes rather it were concerned about whether the government was taking right steps to make sure that Pakistan returns its loans on time”, he added. He said that IMF has found the Public Sector Enterprises’ losses to be the largest black hole in the budget.
MccLahorecollectsRs23,265min4months LAHORE
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ppraisement and Preventive wings of Model Customs Collectorate Lahore have collected revenue of Rs 23,265.71 million during the four months of Linancial year 2013-14. Both wings collected Rs 6472 million in the month of October. Model Customs Collectorate Lahore’s Preventive and Appraisement wings jointly collected Rs 17,118.57 million, 28 percent more, against the amount of Rs 13,405.83 million during the same period of the corresponding year including all rebate and refunds, data available with Customs Today revealed. According to the details, Preventive wing collected Rs 5, 331 million in the Lirst quarter of the Linancial year 2013-14. On the other hand, Appraisment wing collected revenue of Rs 11,785 million in the Lirst quarter of Linancial 2013-14, 12 percent higher than Rs 10,523 million collected during the same period of the corresponding year. Appraisement wing collected Rs
3,415.77 million customs duty, 30 percent more than Rs 2631 million during the same period in FY 201213 while Preventive wing collected Rs 1, 412.19 million customs duty, 53 percent additional duty as compared to the same period of the corresponding year. Similarly, Appraisement wing collected Rs 6, 260 million sales tax, 16 percent more than Rs 5, 326 million collected in the same period of the last year while Preventive wing collected Rs 1,858 million against Rs 965 million, 92 percent higher than the same period of the corresponding year. Under account of Value Added Tax, Appraisement wing collected Rs 195.84 million, 16 percent less than the same period of the last year whereas Preventive wing gathered Rs 329 million against Rs 76.84 million during the Lirst quarter of the last Liscal year. Appraisement wing collected Federal Excise Duty Rs 6 million against Rs 0.69 million in the same period of the last year. However, Preventive wing collected Rs 4.51 million, 52 percent less than Rs 9.40 million collected during the Lirst quarter in 2012-13. Under the head of Income
Tax, Appraisement wing collected 18 percent additional revenue of Rs 1,180 million against Rs 1,001 million in the same period of the corresponding year. Preventive wing, however, collected Rs 1,727 million, 90 percent additional revenue than Rs 908 million in the Lirst quarter of Linancial year 2012-13. Petroleum levy showed declining trend as Appraisement wing collected Rs 781 million against Rs 1,330.60 million during the previous year while Preventive wing did not collect any revenue under this head. In the same way, Appraisemnet wing collected Rs 3.63 million under Special Federal Excise Duty against Rs 0.05 million in the same period of the last year and Preventive wing again collected no revenue under this account. Both the wings, however, collectively offered rebate and refund of Rs 320 million during the Lirst quarter. This shows good performance of these wings. According to sources, rise in revenue collection is attributed to vigorous drive launched by the MCC Lahore. Besides, steps were also taken to stop pilferage while strictly applying the valuation rulings.
Customs unique boat victim of neglect for 20 years arbarossa, an electric boat with unique name and efficiency had been left defunct at‘Ghans Bandar’for almost 20 years.The boat Barbarossa had been included in the fleet of the Model Customs Collectorate (MCC) Preventive in 1989 and after passing few years it had been non-operational for Pakistan Customs. One of the senior officials in MCC Preventive told CustomsToday that Barbarossa was an electric boat and its panels had been destroyed for the last many years due to the absence of proper maintenance.“The electronic panels of Barbarossa had been destroyed and made non-operational completely due to lack of continued protection and safety”, he added. “If Barbarossa is made operational, it will be beneficial for MCC Preventive, as the boat has an efficient capability to continue operation in deep sea for many hours”, he added. —CT Report
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NOVEMBER 26 - DECEMBER 02, 2013
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hk customs seizes rare reptiles bound for dinner plates
HONG KONG: A shipment of lizards bound for dining tables on the mainland was seized in a joint anti-smuggling operation by police and customs in Tuen Mun. The 288 live reptiles, up to 1.5 metres long, were common water monitors, a protected species, and were believed to have been brought in from an Asian country, the Customs and Excise Department said. "We are still investigating whether they were illegally imported into Hong Kong," said Raymond Chan Wan-hung, the custom's marine investigation division head.
MCCPreventiveseizes smuggledgoods worthRs24,950,000 KARACHI
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govt decides to waive off demurrage charges: Michael
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ederal Minister for Ports & Shipping, Kamran Michael has announced that his ministry has implemented the decision to waive off demurrage charges at various ports of Pakistan keeping in view the hardships being faced by business community due to recent 12 days long strike by goods transporters. While handing over the relevant notiLication to the President KCCI, A. Abdullah Zaki during his visit to the chamber, the minister added that no demurrage will be paid by the business community at any port whereas the demurrage charges already paid against their consignments during the period will be settled in future consignments. Kamran Michael was accompanied by Federal Minister for Railways, Khawaja Saad RaLique and PML-N leader Saleem Zia while Chairman Businessmen Group and Former President KCCI, Siraj Kassam Teli, Vice Chairmen BMG, Anjum Nisar, Haroon Farooki, Zubair Motiwala; President KCCI, A. Abdullah Zaki, Senior Vice President KCCI, Muffasar A. Malik; Vice President KCCI, Muhammad Idrees; former Presidents KCCI, Haroon Agar, A. Q. Khalil, Majyd Aziz, Saeed ShaLiq and other managing
— Exclusive Customs Today photo
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he Model Customs Collectorate (MCC) Preventive seized the smuggled goods including diesel, foreign currencies and heroin worth Rs 2,49,50,000 during its anti-smuggling raids on November 5 and 7. According to the details, a team of Anti-Smuggling Organisation (ASO) under the supervision of MCC Preventive officials raided at Jewani, Gwadar Port and seized a launch Al-Zakaria from deep sea containing 30,000 litres of diesel worth Rs1,1240,000. On November7, the teams of MCC Preventive raided at different sites and confiscated various smuggled goods. In the first raid, a bus loaded with different smuggled merchandise goods worth Rs9,180,000 were confiscated from Zero Point while four cases of interdiction of various foreign currencies worth Rs4,250,000 were also detected by MCC Preventive. Similarly, a team of ASO seized 2.8kg of heroin worth Rs280,000 from IMO (hidden in crockery package) from RCD Superhighway.
committee members were also present on the occasion. To a query regarding exorbitant detention charges by Container Terminals, Kamran Michael assured that he will immediately discuss this issue with heads of all container terminals and it will also be resolved soon. Speaking on the occasion, Saad RaLique highlighted the overall operation of Pakistan’s Railways, its poor performance in the past and future plan of action to pull Pakistan Railways out of crisis. He said that his ministry will also be undertaking aggressive marketing and branding initiatives at the entire Pakistan Railways in which every
wall, billboards, train platforms will be utilized for marketing and branding purposes in order to earn revenue for this organization. He said that Pakistan Railways is on the track of recovery and they have already surpassed some of the key Linancial targets set by the government. Chairman of Businessmen Group and Former President KCCI, Siraj Kassam Teli advised Ports and Shipping Minister to take notice of the massive corruption in port and shipping sector which if cleansed from corrupt elements, would be capable of fetching the much-needed foreign exchange for the country. “A designated Chairman should be
appointed at Karachi Port Trust and Port Qasim Authority in order to improve functioning of these ports and resolve many pending issues”, Chairman BMG said, adding that the Board meetings of KPT and Port Qasim, which were not taking place, must be organized on regular basis. Referring to Goods Transporters strike, President KCCI, A. Abdullah Zaki, while highlighting the losses suffered by business community, requested the Ports & Shipping Minister to waive-off the demurrage and detention charges on consignments. Vice Chairmen BMG, Zubair Motiwala and Haroon Farooki also spoke on the occasion.
cuStoMStodAy.coM: A brief introduction
A new level of distinction LAHORE
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www.customstoday.com ustomsToday is first-ever independent newspaper focussing on the customs community.This community is a vital part of the taxation machinery which generates the revenue needed by the government to run its day-to-day affairs.The customs community comprises customs officers, importers, exporters, customs clearing agents and, at a wider level, people impacted by the government's trade policy, customs rules and regulations and SROs. We are going to start a weekly introductory section in our newspaper to keep our readers updated about all the sections, categories, info & links and gadgets which are already part of CustomsToday website and we will also talk about the plans and changes to be made on the website in near future.This way you can have very better understanding of the website being developed and run by our team of highly trained and skilled experts. Customstoday.com is a website par excellence and it is the only source of all Customs related news and information. We have updated all the reference material like SROs,Valuation Rulings, Pakistan CustomsTariff, IGM, EGM and Shipping Companies list. We have also very carefully updated all the relevant gadgets to be very useful for importers and exporters on our website
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including: dynamic cBM calculator, hS code Search, tracks Shipments online, currency converter, World clock, Live vessels Map, distance calculator and units converter.
We cover all the important local and international news relevant to FBR, customs, imports, exports, shipping, freight forwarding, anti-smuggling, customs agents, seaports, dry ports, air cargo and chambers of commerce and industry.We
also cover ministry of finance, ministry of commerce and ministry of ports and shipping. Above all we have two major sections of FBR Chairman and Member Customs where we update their daily activities and news and interviews.We also keep an eye on latest transfers and postings of Customs officials across Pakistan.We regularly conduct interviews of relevant ministers, FBR Members, Senior Customs Officials, Presidents of Customs Agents Associations and Freight Forwarders Association, and Chairmen of all chambers of commerce and industry and update these interviews on our website as well.We have also Editorials and Features & Analyses sections.We have a special team of cartoonists who regularly make illustrations for ourToday’s Cartoon section.We cover news from all over Pakistan but special focus is given to Karachi, Islamabad and Lahore regions. In short, Customstoday.com is such a powerful, reliable and influential medium of communication that the customs community as well as general readers depend on it for the latest news and information about what is happening in this vital sector, nationally and internationally.You can access CustomsToday online 24/7.This was just a bird’s overview of the website, but we will discuss every single section and portion of the website in detail in the coming issues. For feedback and comments to further improve the website would be highly welcomed. For contact: webmaster@customstoday.com.pk
SPECIALREPORT
— Exclusive Customs Today photos
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NOVEMBER 26 - DECEMBER 02, 2013
ISLAMABAD
FAIZA ISRAR
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ember Customs Nisar Muhammad said that Pakistan has an edge of long route through northwest border and coastal belt but smuggling of contrabands, industrial raw material and petroleum products is continued through this route, damaging the economy of Pakistan. While talking to Customs Today in an exclusive interview, Member Customs said another element which should not be ignored is that the Afghan Transit Trade being carried out through un-notified routes is also helping the smugglers. Expressing his deep concern over kidnapping of Customs officials in Jewani area of Gwadar, Nisar Muhammad said that Pakistan Customs is a leading agency to apprehend smugglers and that is why it has to face reaction from the traffickers. This incident shows that smugglers have come to know the seriousness of FBR’s stance against them, he said, adding that Pakistan Customs could also face such situations in future. However, the Customs will not give up its struggle against smuggling, he added. “We are working with other law enforcement agencies like Frontier Constabulary (FC), Balochistan Levies, Pakistan Coast Guards and Maritime Security Agency to tackle the rising smuggling incidents and we will overcome this menace in near future,” he hoped. To a query he said that WeBOC is the outcome of the experience which Pakistan Customs gained during the last decade and this system is one of the best computerised systems. He accepted that One-Customs clearance system followed by CARE has certain serious deficiencies and is not fulfilling the national requirements regarding quick clearance of imported and exported goods and cargos. The new system WeBOC is a developed system and is a result of collective wisdom of experienced Customs officers and the technical team of PRAL, he said. Member Customs Nisar Muhammad said that all the modules of export/import concessionaries schemes, transits and transshipments at dry ports have been developed, and before im-
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plementation of this system, extensive training was conducted. He said that first of all training was given to the Customs staff, clearing agents, shipping agents, ports handlers, transporters and all other stakeholders and it was implemented at national level initially. It is also worth noticing, he said, through this system the element of discrimination has been eliminated and all stakeholders including exporters and importers are treated equally at all the Customs stations. He said that there might be some problems left indeed but FBR is confident that these would effectively be handled by WeBOC project team soon. He said that recently WeBOC Project has been upgraded to Directorate of Reforms and Automation (DRA) with the same purpose of handling the issues. The said directorate is working even in odd hours to respond to the queries of field formations and all stakeholders, he added. Nisar Muhammad also clarified that during first two weeks of November, the Customs duty showed a positive growth in revenue collection. He said that 15.77 per cent more Customs duty has been collected during two weeks of November against the same period of 2012, whereas sales tax collection at import stage has recorded 47 per cent increase and withholding tax showed 45 per cent growth as compared to the corresponding period of last year. He admitted that FBR is minutely monitoring and evaluating less collection of Customs duty. It can also be said that less Customs duty collection is a result of Free Trade Agreements signed by Pakistan with several other countries including China, he added. Another important factor, he said, is the amnesty scheme of 50,000 smuggled vehicles and regularisation of these vehicles caused less imports of highest Customs duty products.
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We are working with other law enforcement agencies like Frontier Constabulary (FC), Balochistan Levies, Pakistan Coast Guards and Maritime Security Agency to tackle the rising smuggling incidents and we will overcome this menace in near future
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08 EDITORIAL
NOVEMBER 26 - DECEMBER 02, 2013
Founder & Chairman Zulfiqar Ali Editor nasim Ahmed Executive 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
A paradoxical policy
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he government’s policy on increasing tax revenue suffers from a strange paradox. On the one hand it seems desperate to improve tax collection to fill the budgetary gap, and all government high-ups starting from the Prime Minister and the Finance Minister down to lesser minions keep assuring IMF and other international donors of leaving no stone unturned in this regard. But, on the other, the government has introduced a raft of measures which militate against FBR’s efforts to achieve the challenging revenue collection target of Rs. 2,475 billion. A few days ago Finance Minister Dar visited FBR headquarters where he was told about the steps being taken by the Board to broaden the tax base, including sending of 36,000 notices to unregistered tax payers, conducting audit of registered persons, ensuring the presence of all field Inland Revenue Officers on Saturdays in their offices to assist and facilitate the taxpayers in filing their returns and setting up of more than 212 kiosks throughout the country at important places including business centres to assist taxpayers. During his visit, Finance Minister Ishaq Dar was informed about the new methodology evolved by FBR to trace undocumented persons by obtaining their alternate addresses from NADRA. Inspectors/auditors have also been detailed to physically visit their residential/business premises to ensure serving of notices to tax evaders. It has also been decided that the Regional Tax Offices would remain open on Saturdays during the month of November. But, at the same time, the tax authorities are shackled by daunting obstacles resulting from the government’s own policies and decisions. One of these is the unresolved issue of bilateral tax adjustment between the federation and the provinces resulting from division of powers under the 18th Amendment. It also needs mentioning here that the Finance Act, 2013, had introduced major documentation measures to expand the tax base in 2013-14. But succumbing to the pressure of the business community, the government has withdrawn/amended all tax enhancing decisions, including waiving the condition of submission of CNICs/NTNs and addresses of unregistered retailers, reducing the penalty for non-filing of returns, abolition of mandatory filing of the wealth statement and restraining tax officials from accessing bank accounts of existing taxpayers. In view of the hip-hop and backtracking by the government, is it possible for FBR to achieve the tax target of Rs.2,475 billion, which denotes a rise of 28 percent over the last year’s figure? It is a difficult question to answer, given the uncertainties of the situation.
govt’s vigorous privatization plan ISLAMABAD
SM hAIdeR
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he PML (N) led government is heavily relying upon pursuing vigorous privatization plan by off-loading shares of 32 public sector enterprises and handing over management control into hands of buyers in the Lirst phase under IMF’s conditions. In the calendar year 2014, the government seems interested to off-load shares of 10 to 12 institutions including national Llag carrier PIA. But Lirst of all the Privatization Commission is awaiting approval of PM Nawaz Sharif for constitution of its 10-member Board. A summary to this effect has already been moved to PM. The government claims that there has been no other option but to privatize these state owned enterprises in order to stop cash
bleeding of over Rs 500 billion on annual basis. But the challenge for the government is to ensure transparency in the process of transaction of privatization and put in place best regulatory mechanism to dismantle monopolies in the post privatization period. As experience in the past on privatization front is not satisfactory keeping in view transaction of Karachi Electric Supply Corporation (KESC) or even PTCL where lacunas existed in the complex legal language of the deal giving space to parties concerned to interpret in accordance with their own liked version that triggered legal battle for indefinite period. So there is a lesson for the incumbent regime that Lirst of all transparency should not be compromised in the transaction by ensuring fair valuation of assets of the units, removing perception
First of all transparency should not be compromised in the transaction by ensuring fair valuation of assets of the units
that liked ones would be the potential buyers at throw-away prices, placing an effective regulatory framework to discourage monopolies in post privatization period and create competitive environment to make this process successful. “We do not want converting public sector monopolies to private sector monopolies,” said Minister of State for Privatization Khurram Dasgir Khan while briefing reporters this week. He said that the actions of the government would demonstrate that they were serious about privatization process in a fair manner having no vested interest with an aim to ensure better service delivery for people of Pakistan. Since 1991 when privatization process had started in the country, total 167 transactions were done that fetched Rs 476 billion or $5 billion.
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PICTORIAL
NOVEMBER 26 - DECEMBER 02, 2013
dubai customs releases Marine guidelines
DUBAI: The Coastal Customs Centres Department at Dubai Customs has issued a Handbook of Marine Guidelines for Traditional Vessels, within the framework of its commitment to educate traditional customers; particularly shipmasters and seamen of traditional ships travelling to and from Dubai, raise the level of safety and security for Dubai Creek visitors, and reduce the procedural offences and violations that can cause dangers, such as wooden ships caught on fire or overloading these ships.
ISLAMABAd: Engr. Khurram Dastgir Khan, Minister of State for Commerce/Pri vatization talking to media after a meeting of the Privatization Commission.
kARAchI: Federal Minister for Finance Ishaq Dar is talking to media along with representatives of United Goods Transporters Alliance. Ports and Shipping Minister Kamran Michael is also seen in the picture.
ISLAMABAd: Minister for Development and Planning Ahsan Iqbal talking with media persons at Planning Commission during a conference of Vision 2025.
kARAchI: The Consul General of the Sultanate of Oman, Ali Ahmed Al Qassimi, hosted a dinner on the occasion of 43rd National Day. Senior Minister of Sindh Nisar Ahmed Khuhro was the chief guest of the ceremony.
kARAchI: Former Member Customs Ramzan Bhatti and Chief Collector Enforcement Muhammad Yahya attends a seminar on Illicit Trade at DGTR.
kARAchI: Agha Siraj Khan Durrani, Speaker Sindh Assembly, attends 9th Build Asia 2013 International Exhibition.
— Exclusive Customs Today photos
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10 NATIONAL
NOVEMBER 26 - DECEMBER 02, 2013
20 non-customs paid vehicles auctioned
ISLAMABAD: Customs House has generated Rs12 million revenue by auctioning 20 non-customs paid vehicles. Deputy Collector Asif Hargan informed Customs Today, “Pakistan Customs generates handsome revenue by auctioning the vehicles seized from the people who do not pay customs duty.” He said that every vehicle was sold in open auction, adding, “Our main aim is to produce more revenue and that is why we accept the highest bid against the price determined by the government. A large number of investors took part in the auction”.
Registration of case by Customs officials
Customs valuations of different chemicals issued he Directorate General of Customs Valuation has determined the Customs values of chemicals in the Valuation Ruling (VR) No. 609/2013 under Section 25A of the Customs Act, 1969. The department has issued the Valuation Ruling of around 26 chemicals including Boric Acid having PCT 2810.0020, proposed PCT for WeBOC is 2810.0020.1000 and Customs Values (C&F) at $0.90 per kilogram for all origin, Aluminium Oxide-A 14 having PCT 2818.2000, proposed PCT for WeBOC is 2818.2000.1000 and Customs Values (C&F) at $0.90/kg for Japan origin, Chromic Acid/Chromium Trioxide All Grades having PCT 2819.1000, proposed PCT for WeBOC is 2819.1000.1000, 2819.1000.1100 and Customs Values (C&F) at $1.90 for China and $3.20 for other origins, Barium Chloride having PCT 2827.3900 having PCT Value for WeBOC is 2827.3900.1000 and Customs Values at $0.47/kg for China Origin, Sodium Meta Bi Sulphite having PCT 2832.1090 having proposed PCT for WeBOC is 2832.1090.1000 at Customs Values $0.322 for China Origin, Sodium Hexmat Phospate 40 per cent and below having PCT 2835.3900, proposed PCT for WeBOC is 2835.3900.1000 and Customs Value $0.75/kg for China Origin , Sodium Hexmat 41pc and below having PCT 2835.3900, proposed PCT for WeBOC is 2835.3900.1100 and Customs Values at $1.00/kg for China Origin, Sodium Hexmat Phospate (Food Grade) having PCT 2835.3900, proposed PCT for WeBOC is 2835.3900.1200 at $1.20/kg for Thailand Origin, Borax Decahyderate having PCT 2840.1900, proposed PCT for WeBOC is 2840.1900.1000 and Customs Values at $0.49 for all origins, Brown Aluminum Oxide having PCT 2818.2000, proposed PCT for WeBOC is 2818.2000.1100 and Customs Values at $0.88/kg for China Origin, Sodium Acid Pyrophosphate (Food Grade) having PCT 2835.3900, proposed PCT for WeBOC is 2835.3900.1300 and Customs Values at $0.80/kg for China origin, Sodium Acid Pyrophosphate (Food Grade) having PCT 2835.3900, proposed PCT for WeBOC is 2835.3900.1400 and Customs Values at $0.90/Kg for Thailand Origin, Dipentense/Urinonene having PCT 2902.1920, proposed PCT for WeBOC is2902.1920.1000 and Customs Values at $1.60/kg for China Origin, ISO Propyl Alcohol 85pc to 98.5pc Technical Grade for all brands having PCT 2905.1220, proposed PCT for WeBOC is 2905.1220.1000 and Customs Values at $1.30 for all origins, ISO Propyl Alcohol 99pc and above having PCT 2905.1220 and proposed PCT for WeBOC is 2905.1220.1100 at Customs Values $1.40 for all origins. —CT Report
WRIte to uS youR gRIevAnceS: Through cuStoMS todAy platform heLP deSk, now you have chance to dIRectLy write your problems to top govt. functionaries. If you have any grievances, queries, questions or suggestions, you can write in this section as it provides easiest access to you to approach Customs and Revenue authorities. Who can write in this section? Importers & Exporters, Customs Agents, Chambers of Commerce, Trade Associations and Customs Officers to WhoM you can write? Honourable PM, Minister/Secretary for Finance & Revenue, Minister/Secretary for Ports and Shipping, FBR Chairman, Member Customs and Chairperson Senate/National Assembly Standing Committee on Finance & Revenue. Send your letters at: letters@customstoday.com.pk
arms dealer as per allowed quota and rules. He said that the consignment was cleared by the Customs on January 4, 2011 but after ten months, the Customs department registered a case against him as well as others for importing prohibited automatic arms. He pleaded the court to quash the FIR against him. However, the respondent department informed the court that the petitioner imported automatic weapons instead of semi-automatic weapons. On last hearing, a report prepared by Humayun Khan, DG PCA, FBR, was placed on record in this regard. The court summoned FBR chairman on December 2 to know about the action taken on the report.
LAHORE
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he Lahore High Court has summoned Federal Board of Revenue (FBR) Chairman to explain the action taken against customs officials involved in an arms import case. Justice Muhammad Khalid Mehmood Khan passed the orders on a petition filed by Sultan Ali, an arms dealer, for quashing a prohibited arms import case. Sultan through his petition submitted that he imported 1,505 semi-automatic pistols from Turkey for another
New modules being installed in WeBOC KARACHI
SohAIL RAB khAn www.customstoday.com
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he Directorate of Reforms and Automation, Customs House, Karachi, which was previously known as WeBOC Project is putting strenuous efforts to bring drastic changes in WeBOC by including remaining modules of One Customs like baggage, auction, jewelry and gems, import/export and Afghan Transit Trade. One of the Customs ofLicials in the Directorate of Reforms and Automations told Customs Today that a comprehensive study is being carried out to develop WeBOC system easier for the consumers. “We have identiLied those modules which were not installed in One Customs but mentioned in SRO 492 and Section 22 of the Customs Act, 1969”, he added. He further informed that the Directorate of Reforms and Automations has also identiLied bulk
cargo issue, DTRC, warehousing and export-oriented modules in WeBOC. He further said that the Directorate of Reforms and Automations has pointed out 157 issues related to WeBOC system and classiLied into four categories including glitches, proposals to strengthen the control, facilitative measures and proposals which cannot be implemented in overall WeBOC scheme. “Most of the issues have been resolved in the system, adding that it has been decided that the Collectors of all three Collectorates including MCC-Appraisement (East), MCC-Appraisement (West) and MCC Muhammad Bin Qasim shall keep arranging meetings at regular intervals to resolve the issues facing by the consumers”, he maintained. Replying to a question, the ofLicial asserted that more than 60 issues have been resolved and the top most priority of Pakistan Customs is to settle the issues being faced by exporters, importers, Customs agents and other stakeholders.
The top most priority of Pakistan Customs is to settle the issues being faced by exporters, importers, Customs agents and other stakeholders
transporters facing severe parking problems To, Federal Minister for Ports & Shipping, Govt of Pakistan, Islamabad Respected Sir,
We -- transporters community-- are facing severe problems pertaining to parking of our vehicles. The 13,600 sq. yards of land located near Karachi Fisheries was allotted to transporters in 1996 for parking their trucks, cranes and trawlers but the land mafia with the patronization of Karachi Port Trust encroached the land and deployed their armed men at the site. We have submitted a petition in this regard in the Sindh High Court. We request to the federal government and Ministry of Ports and Shipping to retrieve the land of Karachi Fisheries from the
land grabbers and hand over to transporters. We strongly demand of the authorities concerned to take effective steps in order to free the land from land mafia so that transporters community could get a sigh of relief. We further appeal to the Karachi Port Trust administration to call the Port Council Committee (PCC) meeting after every three months to discuss and resolve the issues and problems of transporters. We hope that Ministry of Ports and Shipping will resolve the issues of transporters at the earliest. Yours sincerely,
Ghulam Yaseen Khan Niazi, Chairman United Goods Transporters Association, Karachi
— Exclusive Customs Today photo
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LhcsummonsFBRchairmanto reportonarmsimportcase
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CARTOONSSPECIAL
NOVEMBER 26 - DECEMBER 02, 2013
uk customs seizes record numbers of illegal wildlife items
LONDON: More endangered animal items have been seized in the year up to April 2013 than any other year the Home office has announced. 690 items were seized in total - an increase of 181 on the previous year - including live big cats and tortoises. The Home Office also confiscated hippo teeth, ivory and an alligator skin upholstered Rolls Royce. Nearly 4,000kg of medicine and over 300 items containing ivory were confiscated.
“I spend 30% of my day working for the tax man, so that’s the part of my day when I goof off.”
“I got the feeling you’re struggling with your taxes, so I took the liberty of hiring you a professional
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NOVEMBER 26 - DECEMBER 02, 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